Transcripts For CNBC Closing Bell 20150422

Cloud storage space. Yes stand by for another title wave of earnings coming after the bell tonight. This time its facebook ebay qualcomm and at t, some of the many big names set to report results tonight. Well, of course have the numbers as soon as they hit the tape and the market responds and the guideance and all the good stuff that comes out. Another big story, another big name set to report its results, petrobras had to delay numbers for months because of an enormous scandal. Michelle carusocabrera is in rio de janeiro. Ten years of corruption. What an incredible story. May have robbed them of billions of dollars in assets. Well get to that story coming up in a little bit here. Lets show you how were doing on wall street today. S p is up 10 and the nasdaq continues higher. This would be another close above 5,000 today. And i know you were noting kelly, that the nikkei hit a milestone last night as well. Thats right. Closed above 20,000 for the first time in 15 years. Notably japans index still off its record highs, bill. It does feed into this idea that we have finally seen asset prices responding to Central Bank Policy and Earnings Growth some of which had been like the nasdaq demoralized for years. Some of the things well talk about in our Closing Bell Exchange with our guests they include one jack berugian. Nathan bachrach Kenny Polcari and nancy tangler from arizona bank and trust. Thank you all for joining us. I think Arthur Cashin had it right when he said this market is like a hamster on a wheel a lot of movement but not going anywhere right now. Absolutely not. Weve been talking about it for a couple weeks. Weve been stuck in this trading range, boups range, bouncing off the highs and the support system. The market and investors are digesting these earnings which are not nearly as bad as they led us to believe. 80 beat lowered estimates. 48 of them are growing revenues. Investors seem to be okay with it. The geopolitical world at the moment seems to be quiet. Greece good another emergency funding there. Thats okay for a couple of days. Until something happens, i think it will be tough for the market to break out or break down. Nancy, what are you buying here . Last time i was on i talked about technology and that has been a bright spot. Right. And you can continue to see valuation trumping growth. I think an interesting story for today is chipotle versus mcdonalds. One company is a great grower and the other is not growing anything and its up 3 to 6 . I think were in a valuation mode where you want to stay away from the broad indices and focus on valuation. Adam thurgood what do you make of the earnings and the Economic Data weve gotten lately and how the market is responding as well. Its been interesting. The economic surprise index and the s p 500 had a strong positive correlation in 2014 when we got good Economic News the market tended to perform quite well. So far this year thats turned sharply negative which is obviously worrying sign if you believe the economy is going to improve. In the coming months and quarters, which i do. Adam just to be clear for our viewers, when you say its turned negative you mean markets arent following the economic surprise index . Yes. The s p is actually the core laying the last time i checked was negative 0. 7. When we got a bad earnings number or bad economic piece of information the market tended to go up rather than down. So that trend has revered from 2014 which is a bit concerning. You want me to go . Nathan bachrach, we talked to the ceo of Td Ameritrade, we had Earnings Reports from charles schwab. Because of the market volatility, individual investors stayed away from the market in the First Quarter. Is that a good move or not, do you think, for people that listen to what you say about the markets . I dont know that they stayed away from the markets, bill. I think they stayed put. Right. I this of it as an electric current. All of a sudden this economy of ours this electric current found a lot of resistance. If you grab the bare wire, youll still get a shock but not what it was last year at 14 . We had great real estate numbers today except when you look at how permits are likely to play out in terms of the number of housing permits issued between now and the end of the year. It will be about 1. 5 a year. Thats not enough to get housing where it needs to be especially when you look at firsttime home buyers at only 30 of the market. They need to be between 40 and 45 in order for housing to hit critical mass. That would be one example of where theres a headwind constrain the, resistance. Where the market would like to move forward. At least here in the United States its going to have a hard time getting out of the way itself. I think the challenge is for business. The American Consumer has savings. We see savings growing every month. Right. We have a wonderful, happy accident inside of peoples checking and savings accounts. Its called the savings theyre getting at the pump and when they go to costco and they find the samsung device they want to buy is a lot less. But theyre not spending it. It will take a salesman of wall street to say, i have a better this, that or a better mouse trap. Spend the money. Otherwise its sitting. The 401 k hasnt moved very much. Because theyre on a broadbased index. The challenge is on business to say, all right, let me get you spending that money. Its there. Adam let me circle back to you for one sec. What is this pattern you identified tell you about fed policy and how the mark set reacting . Fed policy is definitely going to increase volatility now, because theyve become a lot more data dependent. Fed policies had a dramatic effect on consumer psyche. Back to the prior guests point, when you look at the Consumer Confidence in the income group thats 50,000 and above, that group is over 20 points more confident today than average. While the rest of the groups below 50,000 are less confident than average. So that is very indicative of how the feds policies have benefited those that own Financial Assets and have not had a dramatic impact on those that have not. Jack berugian i know you advocate buying dips. We had a guest that said he could see dow 20,000 by the end of the year. Could you see that . I can, actually bill. One of the things people arent talking about is if bill gross is right and we see a bit of a leak in the fixed income market that money will go by way of asset allocations into the equity markets. Were already seeing it in certain areas. If it picks up steam, it will be a tsunami thats hard to stop. One thing to keep in mine markets correct in either price or in time. This market is being sideways for a while. Youre starting to get bearish sentiment out there. A lot of people who have turned into believers are becoming nonbelievers again. All of that is very bullish. And when it starts to hit, one thing to keep in mind is that you know its one of those things when you start to make new alltime highs, its very hard to get in if youre not already in. Thats one of the reasons i think buying dips is absolutely the way to go. Nancy, you brought up this point about chipotle versus mcdonalds and evaluation is the key to good ideas right now. Are you suggesting you should system with a chipotle that has better growth or saying look at the stock price and look at the names responding better im a value investor. I believe eventually good things happen to the bad stocks of fallen angel icons like coke or mcdonalds or emc. Or in here there have been a number of names, ibm that has not done anything right for a long time. Now its trading at nine times estimated earnings and you have an Earnings Report that was awful and the stock went up. So i think people are looking for valuation and trying to find a place to get in. To jacks point, because the indices have hit new highs, theyre looking for ways to get in in a valuation, attractive iveive manner. I know you have been talking about this fellow arrested yesterday in the uk on charges of causing, in part the flash crash back in 2010. I thought you wrote eloquently about it this morning on your blog. Give me a 30second riff an your thoughts on this guy. I think what it highlights is the concern weve had all along is that once again, weve allowed technology in this industry to control us versus us controlling the technology. That was made very clear in this arrest yesterday, based on what this gentleman was able to do using advanced technologies that was kind of under the radar, he broke every law in the book by spoofing and layering with creating false interest either way. This story will be interesting as it unfolds. Certainly it goes right back to the role of the human being in this whole process. Kenny, has this behavior from the time been fix, been corrected . Its been corrected in the sense that its interesting. Prior to 2010 the spoofing layering was an ethical conversation. It wasnt necessarily illegal but it was unethical. After 2010 dodd frank made that action illegal. He was doing this after that became illegal. Now it becomes a legal illegal question. That should no longer be happening. What will be interesting is how many others . This is the no the only highspeed trader thats spoofing and layering. We have to go jack. What were you going to say, very quickly. I dont want this to turn into a mentality. I use computers all day long. I dont break the law. And reality is this kenny the markets are always going to find a way to be able to cheat. There are going to be bad people whether doctors, lawyers, traders, theyll figure out a way around the system but we cant blame technology. Outlaw greed. Computers dont cheat. Its the people who cheat. Correct. I know theres more we can talk about that on that. Kelly, owl do that next hour on closing bell. Well continue to follow that story. Again, the trader fingered in all of this is out on bail in the uk. Extradition coming up in the middle of all of this. As the charges filed in the u. S. We have 50 minutes to go. We have a market up 81 points on the session for the dow. Broad market s p up almost 11. The nasdaq up 23 comfortably above 5,000. Another storm of after the bell earnings heading our way, facebook, ebay qualcomm and at t among the biggies reporting. Well bring you the results the second they hit the street along with the market response and the instant analysis from our pros. Up next the ceo of box, aaron levie speaking with us exclusively. Find out if box is a stock you need to own we we return. The eclass has 11 intelligent driverassist systems. It recognizes pedestrians and alerts you. Warns you about incoming crosstraffic. Cameras and radar detect dangers you dont. And it can even stop by itself. So in this crash test, one things missing a crash. The 2015 eclass. See your authorized dealer for exceptional offers through mercedesbenz Financial Services. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. 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. I love making sunday dinners. But when my back hurt, cooking all day. Forget about it. Tylenol was ok, but it was 6 pills a day. But aleve is just 2 pills all day. And now, im back aleve. Gains across the board for the major averages with the dow up 81 points at this hour, the s p is doing best of the three percentagewise with a gain of over half a percent. The nasdaq up 22. We look at the ten sectors inside the s p 500 index, kelly, once again, Technology Leading the way followed by financials. Consumer staples are the worst performer but still higher. All ten sectors are higher. Look at that they are. Speaking of tech it will mark three months since box went public. Its still down about 20 from its Closing Price on that first day of trade. Josh lipton is in San Francisco now at boxs annual developer conference. He joins us now with their ceo, aaron levie. Josh, all yours. Bill aaron, thank you for joining us today. Were here at this big developer conference. You have about 50,000 developers now in your platform. Yes. You introduced new tools, new ways to build on the platform. Walk us through the news. Yes. Were excited to host box dev. We have 1,500 developers and startups here. The whole point of our platform is we take the same technology we take to enterprises and allow developers to introduce capabilities in their application that we power. If youre building for health care or Financial Services or retail box can dramatically improve the kinds of experiences you create in your application. Switching gears today, i want to talk about the stock, edging higher, you have about 30 since the ipo. Youre down about 30 from that high. One concern for investors is that growth rate. It was 70 . Now youre forecasting more like 30 . Why that drop, aaron . We certainly want to present kind of realistic guidance to the street that we can get comfortable with with the market. And that was the guidance that we delivered. Well do we expect to do over 280 million of revenue this year. Theres still a tremendous amount of growth in the business. Were very, very focused on tackling the massive problems of how do enterprises securely manage their data and information. The industrial companies, the federal government in Financial Services. Our platform is about making that possible and making that happen in an accelerated way. I think you had a question for aaron. Thanks josh. Hi, aaron. Kelly here. Hey. As you look to make the case for box against these competitors, one way to do so would be building and encouraging great apps on top of what you offer. The other might be a massive sales force to shoe horn all of these clients into using your technology. Which of the two do you think is more Cost Effective and youre likely to put more resources into . Yes. We certainly dont want to shoe horn anybody. The idea is we have 45,000 customers that have adopted box. Every single one of those customers is a business whether its General Electric or eli lilly ors a s aaztrazeneca. We can provide more value to the customer and the developer system. The first way is much Better Technology for developers and the other is a route to market where you can sell into 45,000 customers. Both of those are appealing to our developer ecosystem. The verticals budding the industry specific solutions, retail, finance, health. What are the costs of that . As you move into that does that mean for your investors greater r d spending does it mean you have to hire more sales people more experience sales people . How do investors think about that. Weve presented the case to investors where theres a lot of technology we want to continue to build out. We made a small acquisition last week of a 3d modeling company. If youre in manufacturing, engineering and you work with 3d designs and you want to share with them and work with them in the cloud, we have technology that makes that possible. There will be unique security solutions. In Financial Services theres a lot of interest in controlling your own encryption keys. Were building out a bunch of technology to help with that. At the same time well be investing in new go to market capabilities. We made those investments clear to the investor community. Theres excited investors about that. You had a question. I do aaron. Last time you were with us was the day you reported earnings. You took the street to task for getting your share count wrong, the estimates were wrong. People took you to task for taking them to task thinking you were too sensitive. Im curious. What have you learned . Have you kissed and made up with the analysts . What have you learned about being a ceo of a Public Traded Company now . Theres been a lot of group hugging sessions. No, we got over it pretty quickly. We just wanted to communicate and provide clarity. We wanted to make sure the information was correct. Were expecting to have certainly much more factbased outcome in the next quarter earning report. Last question youre a young ceo, highprofile ceo. You talked about admiration for jobs. Do you seek guidance from any ceos, do you call beneoff. We just got offstage with eric schmidt, the executive chairman of google. Whats great about silicon valley, you have companies that have been built up over the past couple of decades where their leaders are willing to give back to new entrepreneurs. Thats actually the same thing were trying to do with boxdev where we bring startups together that are trying to go and transform how the enterprise works. Our job is to be a platform and provide the goto market support and the mentorship for those companies provided to us by mark beneoff, eric dell Michael Schmidt and many others. Thank you for your time. We appreciate it. Back to you. Josh lipton with aaron levie out in San Francisco. A news alert from the world of sports. Cnbc reporting that billionaire tony wresler has won the bidding war for the atlanta hawks, price tag, 850 million. Hes the ceo of aries management. The hawks finished the regular season with the second best record in the nba. Its currently up one game to nothing in its playoff series with the brooklyn nets. Their management had been in disarare, their general manager danny ferry had to step aside after making racially insensitive marks about one of the players. One of the owners took himself out of the game when he discovered an email he sent that had racially discriminations remarks. I know you follow all of that kelly. Im trying to follow the playoff series a little bit. Very exciting. Theres interesting discussions going on at the ownership level about how to run a successful basketball franchise these days. Ill be following with the interest. Ask the knicks and the lakers how that goes too. Or doesnt. We have 37 minutes left in the trading session. The dow still up now its even higher up 92 points as we move into the last half hour of trading. The s p is up 11. Nasdaq led by that hot technology sector, up 25 points right now. Up next were going live to petrobras headquarters in brazil, price fixing bribery, political kick backs. The oil join the is embroiled in a multibillion dollar scandal. Find out whats happening there could affect your money here on wall street, coming up. If youre looking for a car that drives you. 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. under loud music this is the place. Eir beard salve is made from sustainable tea tree oil and kale. You, my friend, recognize when a trend has reached critical mass. Yes, when others focus on one thing you see whats coming next. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. Probes into possible price fixing bribery, political kick backs, all kinds of things going on. Weve dispatched Michelle Carusocabrera in rio de janeiro. We should get the results within how soon do we expect to see them now . If all goes according to plan kelly, it should be a few minutes after 5 00 east coast time a few minutes after 6 00 local time as long as the board approves release. Thats the one conditionality. Everyone expects those numbers to come out. I can tell you, if they dont come out, it will punish the shares for sure. What were looking for is a credible estimate of the impact of the massive amount of fraud thats been revealed that investigators say incurred over the past ten years through briberies, kick backs, et cetera. Whats the credible estimate of the fraud, the impact of the Balance Sheet of the company. Thats going to be crucial. That scandal punished the shares over the last year. Theyre down more than 30 . They have got to right this ship. The debt of this company, which is enormous. Its the most Indebted Company of the world has also suffered as a result of this scandal. The next hurdle is theyll have to figure out how do they return the company to more cash flow positive position to reduce their leverage . We built you this graphic to show you just how leveraged petrobras is. It is the most Indebted Company in the world, has more debt than many countries and relative to its size it is more leveraged by a long shot than any of the other oil majors. They are cash flow negative because they have borrowed and borrowed to drill in the deep ultradeep water, which is expensive. It was okay when oil was at 100 bucks a barrel but at 52 not so good. So theyve got a lot of issues to get through here at this point. And thank you, michelle. Hang with us. Plenty of attention will be paid toward that Earnings Report tonight, bill. For more lets bring in Brian Reynolds with rosenblatt securities. We always ask, something especially on the scale of this how it could happen who fell asleep here . In fact one thing that makes this very messy is the person who is the president of petrobras while this was going on is now the president of brazil. That adds to the confusion of this whole thing here. Its actually really sad. It seems like there was corruption on an institutional level. That means brazil as a country has a wasted opportunity. Oil was over 100 a barrel and petrobras sits on top of very expensive deposits. When oil is high it made sense for them to drill. Instead, everybody wanted to get a pound of flesh. Ive been coming on this network for two years talking about how weve had a commodity bubble. How the street has done can be priming commodities. Now those deals are coming unraveled, just as the housing cycle did and the commodity bubble is winding down. Right. So now brazil is gearing up for the olympics and they dont have the cash flow to drill for this expensive oil. Its a real wasted opportunity for that country. Brian, bridgewater highlighted their concerns about brazils ability to service a petrobras bankruptcy if you would or even just its cash flow needs and pointing out as well that this is an institution that along with its contractor could have an impact of 15 to 20 . Will this become a systemic issue if brazil has to shore up petrobras . If you look at the commodity bubble as a whole, its a massive transfer of wealth from commodityproducing nations to commodityconsumer nations. When you uncover a situation where theres corruption on a massive scale, it just hurts that economy even more. And what that probably does it put more of a ceiling on oil prices. Were in the middle of a bounce that started in january. Oil prices looked like theyll bounce for a few more months. The more the oil goes up the more the likely countries like brazil will be tempted to drill and produce more oil to meet the cash flow needs to service that debt. That means they have to run on a treadmill even faster than they thought they would have a couple years ago. Its a problem for brazil but a benefit for developed nations. Michelle, i mentioned the president and that sticky situation there. Everybody must be holding their breath in her administration on the results coming out. Shes denied knowing about any of this corruption while she was there, right . Yes, the nation collectively holding its breath some with hope, some with fear that she may get implicated at some point. She was the chairman of this company for a long time especially during the time the corruption was going on. So far investigators have found no connection to her. She denies its going on. The treasurer of her party has been arrested. Its gotten closer and closer to her. We have to wait and see exactly what happens. Remember, up until recently, the finance minister of this country was also the chairman of the board of petrobras because there was so much government intervention, still to this day into this staterun oil company. When when you see shares exchanged, the vast majority are controlled by the brazilian government and they dictate what this company does sometimes not in the economic interest of the company or shareholders not even themselves. Michelle thank you so much. On the scene for us as we await, hopefully about 90 minutes time until we do get the results, Brian Reynolds sir, a pleasure as always. We send it out to Mary Thompson for a quick market flash. Shares of omni care, they were halted earlier. The stock has now been released. According to bloomberg, they are said to be exploring a possible sale. The stock was up 9. 5 . You can see its trading once again, holding on to a 6 gain. Back to you. Mary thompson, thank you very much. Time now for a cnbc news update with sue herrera. Heres whats happening at this hour. A federal judge approved a potential 1 bhl plan to resolve thousands of nfl concussion lawsuits filed by retired players. The settlement would pay them an average of 190,000. But the awards could reach 1 million to 5 million for younger players diagnosed with parkinsons or lou gehrigs disease. A pot luck dinner turned deadly in lancaster, high. One person died, 23 people are being treated for botulism. Health officials in ohio are conducting an investigation. A drone with a radiation sign was found on the roof of the Prime Minister in tokyo. The drone was testing a plastic bottle which tested positive for a teeny amount of radiation. The landing came soon after a court rejected the demand to halt the restart of a plan the in japan. Part space rocket and part super sonic jet, the bloodhound supersonic car is said to be the worlds first thousand mile car. If successful, it will accelerate from zero to 1,050 Miles Per Hour in 40 seconds. Wow. How do they keep it on the ground, sue . Im not sure they do, actually. Its amazing. Dont eat before you go. Thats all ive got to say. That would be a heck of a sunday drive. Yes. You could do it in like a minute. Ill get milk. Ill be right back literally. Thanks sue. 25 minutes to go until the close, bill. 85 points higher. The nasdaq again, above 5,000 today, adding 20 points on the session as we wait for key tech earnings this afternoon. When we come back Telecom Companies be aware. Google is unveiling its new Wireless Service that will allow customers to pay for the data they actually use. You get money back if you dont use it. We have a former mobile phone executive to discuss how much of a game changer this could be for the industry and consumers. Still to come. 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. Ask your doctor about cialis for daily use and a free 30tablet trial. [ ] there is an ancient rhythm. [ ] that flows through all things. [ ] through rocky spires. [ ] and oceans swell. [ ] the endless. Stillness of green. [ ] [ ] and in the restless depths of human hearts. [ ] the voice of the wild within. [ ] welcome back. Heres a look at google up just under 4 this year today adding 1. 4 on the session. The tech giant began offering its service in kansas city about three years ago. Now its planning to expand that service. Kate rogers joins us with the latest. Kate . They will be expanding the Service Across the country. Were here in kansas city san as at their Startup Village where which is where it all began. This highspeed internet product sparked a sense of entrepreneurship in this community. Half a dozen accelerators over the past few years helped launch more than 100 startups. Google says this is one of the fastest products around. Ittive goods you a connection up to 100 times faster than most homes in the country. Our business was actually in missouri for a long time abbe we didnt have access to google fiber. We tended to drive over to a place where we had google fiber. Wed sit out in the parking lot and upload content to leverage that connectivity. We have access to it now. And you can expect that same anticipation as google expands its reach across the country in new cities including atlanta, charlotte, nashville, Raleigh Durham and salt lake city. Theres not a set day on when google fiber will break ground in those areas but google executives are saying to be patient. Unveiling it and rolling out these new fiberhoods is a lofty task. Also in the news google entering the Wireless Service business. The search giant announcing project fi as its called. 20 a month you get the basics including talk text wifi, international coverage. Then a flat 10 a month for each big gigabyte of data you use. If you dont use all your data that month, you get back a credit for unused data. This project fi will first be able with the next smartphone. Can google survive the telecom wars more generally speaking . Joining us is matt carter former president of sprint enterprise solution group. Thanks for having me. How much of a disrupter is google to your industry . I think google brings an interesting dynamic to this industry. On one hand, will they align themselves with the disrupters sprint and tmobile further fueling the pricing wars or are they going to align themselves with the duopoly as at t or verizon. What i think is far more interesting is not so much what the incumbent carriers will react to google i think its how others facebook yahoo microsoft, other entrants will look at googles entry and say to themselves hmmm, should we be considering this as well as a way to deepen our relationship deepen our understanding of the mobility industry. Whos going to buy this service, matt . You know its a crowded field already. Very popular, iphone is covered, popular samsung gallery. Who will go with the new service being provided by google do you think . Interestingly, to use a political analogy, there are the incumbent candidates that everybody knows. With them they bring a certain baggage. Then there are the candidates who enter the race that are the new fresh faces. They provide new hope new optimism. Googles entry, quite frankly, probably creates an opportunity for a new fresh face to come into this industry and provide a different kind of model. A different kind of behavior. Is it better service, Cheaper Service . Is it more geewhiz service . What is it they offer that the others dont then . The one thing that google has is a great brand name. Therefore, they dont have the baggage that the other brands have within this industry, good or bad. Google to some extent could actually extend a new face a new beginning, a new set of hope. And people by the way, find that appealing. If you look at tmobile theyre doing everything they possibly can to say were not like them. Right . Sure. Google similarly can come in and say were not like them were this. Whatever this may be it could be pricing. It could be a new customer experience. It could be other devices. But they have not the baggage that the other guys have, therefore, they can create a new narrative in the marketplace. Matt, before we let you go im interested in the comment you made about facebook that does report earnings this afternoon. This is a capital intenseive business. Why do you think it would be a good idea for facebook to commit the capital to try and disrupt this space to the extent google has . Well, so one of the things that facebook doesnt have to do, they done the have to go out and build a network. They can go to Companies Like sprint that has a wholesale business a plug and play solution, for other brands to access their network. So what facebook brings to the party is what they do. Theyre good at branding and marketing and doing what they do around social media. So they dont have to take on all the infrastructure. There are other enablers out there like sprint that can provide Companies Like facebook an opportunity to easily enter into the mobile category. All right. Matt carter former president of sprint and boost mobile, good to see you. Thanks for joining us. Thanks for having me. 16 minutes left in the trading session here. The dow is up. I dont have a thing in front of many he. Were coming off the highs here up 77 points now above 18,000 the nasdaq up 19 above 5,000. 15 minutes to go until the close, bill. Up next an earnings whirlwind is heading our way again. The numbers to move these big cap stocks, when we come back. In Small Business you have to work hard, know your numbers, and stay focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Another head spinning round of earnings after the bell tonight. Im getting ready for it. Mary thompson, whats front and center on wall streets radar. Kelly, so many big names. Another day full of earnings with facebook being in the spotlight. Analysts focus on advertising revenue expected to see 3. 2 billion there with earnings of 40 cents a share in total revenue of 3. 5 billion. The stock trading near an alltime high as you can see up fractionally at 84. 48 right now. Ebay reports after the close. They are expected to post a profit of 07 cents a share with shares of 4. 4 billion. Shares fractionally higher as well. Qualcomm results expected to be in line with estimates, maybe, maybe not. They are looking to see if 1. 33 a share for qualcomm also up fractionally today or 32 cents. Finally, at t, ill be following this one. The Telecom Giant posting a profit of 62 cents a share, reef knew of 32. 8 billion. The company has been facing stronger price competition and increasing promotions. Ahead of that up 14 cents. Bill, back to you. Earnings team will be standing by at the top of the hour there. Thanks mary. Heading to the close, about 12 minutes left here. Mr. Bill i have news. 400 million to sell on the close, art is saying. It does look as though the computers will pare that off. Up 45 points on the dow. Were going into another earningspalooza. The ceo of angies list gives me a preview, bill oesterle coming up. Dont go anywhere. 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. Welcome back. Eight minutes left. The dow up 87 points. Joining us there at the New York Stock Exchange Harry Hartford from causewell funds and bob pisani. The market weve been seeing the last several weeks just going nowhere. Sideways action here. You dont think the markets are cheap but what do you think . Is it acting like a top out here . What do you think is going on . I think were obviously in earnings season and the equity market is generally quite dependent on earnings and one of the issues that the s p has had to address is whats happened to stocks in the u. S. That have derived, you know significant revenues outside of the u. S. And the impact of the currency. The earnings are likely to not just be in this quarter but through the balance of 2015. And i think as we go through the balance of 2015 particularly relative to revenues derived in the eurozone well start to see the negative impact as the second half of the year progresses. Youre joining us from los angeles. What is it that we hear insulated in the Stock Exchange and wall street need to know about what are we missing, do you think . Well i suppose the key question will be what happens to interest rates. We are in a period of unprecedented Monetary Policy not just here in the United States but globally. Ive been doing this for over 30 years and i dont remember the Swiss National bank charging 25 basis points for the privilege of giving them your money. High will be we highly unusual conditions. So everybody anticipates u. S. Interest rates rising. They will rise ahead of the rest of the world. And it will be difficult for u. S. Equities to rise in the face of higher interest rates. You know can i just throw a Little Monkey wrench in this thing . I know its boring and were sideways but were not far from breaking out. The risk is on the upside. Were at 2107 on the s p. Were ten points from historic high on the s p. The same thing with the russell, the same thing with the dow, the same thing with the midcap. Nobody seems to care. Theyre all falling asleep because its not enough volatility to keep the traders active. This is where we get the stealth rallies. The valuations are higher but im not sure everybody is willing to throw in the towel on this right now. Youd have to convince everybody that earnings were at a real historic peak now and were heading down. Theyre flat now. Thats due to the dollar and oil. Im not sure everyone will write off the earnings. Well take a quick break and come right back after this. We have a closing countdown to get to in a moment. Then you have much to get to as well. We do. Facebook and ebay among the big names with earnings after the bell. Well break the numbers down with our team of pros. Youre watching cnbc, first in business worldwide. 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. 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. 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Coming up in the closing countdown, show you the dow and how it did a stutter step on the open this morning but then it generally moved higher. Were coming off just the highs of the session up about 88 89 points right now as we head toward the close. The four Companies Reporting earnings tonight, weve already identified them. They include facebook ebay, qualcomm and at t. And Harry Hartford from Causeway Capital still with us as well as bob pisani. Three of the four companies are californiabased. Do you Like Technology . We do Like Technology. We have the tendency to prefer old tech over new tech but we have an interest in qualcomm. So well be paying close attention to that. We have quite an exposure in global funds to u. S. Tech in particular. I think the important thing harry is where we go from here. People want to know if were going to break out or not. Were in this trading range, 2120 on the s p 500. Were 9 points away from a new closing high on that right now. I guess the issue, i said this before can earnings are we really taking earnings and everybody is convinced we can only go down from here. Thats the big issue. Where are we going . Whether were peaking in earnings or not, the other question is whats the alternative . Bonds are where they are. They might be higher in the United States. 20 basis points in germany and a variety of geographies are at low levels. There are no alternative. It makes the bar much higher for the bears out there to say, all right, sell everything. Where are we going to put our money if we sell everything . He loves that one. Harry, thanks for joining us. Appreciate it very much. See you later as well. That will do it for this first hour of the closing bell as we go out with a pretty good gain here. We get ready for the big Earnings Reports. Plus, the ceo of angies list joins kelly coming up on the second hour of closing bell. See you tomorrow, kel. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. We have a lot more earnings on tap. Well get to those in just moments. First lets begin with how were finishing up the day on wall street. Green arrows across the board again. As we heard from bob pisani dont look now, the s p 500, the Broader Market index, only ten points away from its alltime closing high. 2107 is the level there compared with a record of 2117. The dow adding 87 points closing back above 18,000. The nasdaq added 21 to close at 5,035 only on 13 points off its closing high that goes all the way back to march of 2000. We had another notable one last night. The japanese nikkei closing above 20,000. Joining me now is todays panel, Larry Kudlow Carol Roth as well as kevin oleary. Welcome one and all. John najarian and guy adami join us as well. Lets begin with you, carol and some of the near records were setting for markets even though it hasnt been a banner year so far. Good news today, kelly, was the surprise. The markets were reacting to news about stocks individualsly appropriately. Whether its visa and mastercard with the opportunity to do Payment Processing directly in china, whether it was yum brands resolidifying the back half of the year. Where there was good news it was going up. Where there wasnt such good news, it was going down. I love the fact that were back to Company Fundamentals that being said on many of these cases, the earnings multiples are rich for my taste. Im not sure that thats fully good news. At least it seems more normal to me. Speaking of that, i apologize for interrupting as we get these numbers out. Before i interrupt, lets just go right to them. Facebook results are out. Lets begin with Julia Boorstin and these closely watched numbers. Thats right, kelly. Facebook reporting earnings of 42 cents per share. Thats 2 im sorry, 2 cents more than wall street analysts had been expecting. From 34 cents in the yearago quarter. Q1 revenue coming in at 3. 54 billion, a hair light from the 3. 56 billion that wall street analysts had been expecting. Facebook does point out some currency swings saying on a Constant Currency basis, revenue would have been 188 million lighter. Theyre not the First Company this quarter to point out that influence. A couple more key numbers, monthly active users, 1. 44 billion. Thats up 13 over daily active users, 936 million daily active users, up from 890 million in q4 and up 17 yearoveryear. Thats the most users added consecutively quarter to quarter since facebook went public. Mobile monthly active users, 1. 25 billion. Thats a 24 increase. Mobile daily active users, 798 million. Ill continue to dig through this release. Well be back to you with more kelly. Julia, thank you so much. Facebook shares dipping about 1 on those numbers. Lets get more reaction from edmund lee joining us from recode and sara henley from green capital. Welcome to you both. Ed, first to you. Daily, monthly active users and the mobile percentage that were seeing, why do you think shares are acting negatively . They missed on the sales which, a little bit light. Its not a huge huge miss. The expectations are always that theyre going to beat expectations. As strange as that sounds. Thats probably what the market is reacting to. The rest of the numbers, im seeing them now for the first time myself. It feels like a miss to me. Profits are okay it looks like. Monthly active users are doing all right and theyre adding a good amount of users. It looks like currency swings are affecting them like theyre affecting all u. S. Companies. That will be a challenge going forward. I want to see more about their business, what they plan to do with instagram and hopefully well get some of that on the call. It looks like a miss to me. Sara welcome to you. Whats your take. Thank you for having me. I think this is a fine quarter. Its a little bit shy on the top line but when you dig into the details which were starting to look at here what you see is that monthly active users did come in better than expectations. On top of that advertising revenues also look relatively solid. So kelly, my first reaction here, just thinking about this report is that q1 of course is a seasonally weak quarter for the advertising market. Theres obviously a Significant Impact coming from foreign currency with over half or approximately half of facebooks revenues coming from overseas. Were talking about a relatively compare here. As the company did report 72 yearoveryear growth in q1 of 2014. Overall, im comfortable with these numbers. Well leave it there for the moment. First well hit at t quarterly result which is are hitting the tape as well. Mary thompson has those numbers for us. A mixed result from at t. Lets start with earnings per share on an adjusted basis, the Company Earned 63 cents a share which was a penny aed half estimates. Revenue miss a bit. Investors were looking for commentary on the acquisition. It is expecting sinner his of 2. 5 billion on a run rate there. A couple other notes from Quarterly Results, the postpay churn declined a little bit. Wireless pretty much in line with expectations at 14. 81 billion, slightly just a hair below estimates. At t beating on the bottom line revenue missing slightly. Back to you. Similar to what we saw with facebook there. At t shares responding more positively. Up 0. 5 . Facebook weve seen them come through, now at t. Now it looks like qualcomm as well. John ford keeping a close eye on these for us. Kelly, qualcomm beat on revenue and adjusted eps for the quarter. Theyre reporting the Second Quarter but a big miss on guidance. Qualcomm has a statement about that. First let me get you the numbers for the Second Quarter theyre just reporting. Revenue of 6. 89 billion versus 6. 83 expected. And eps adjusted eps of 1. 40 versus 1. 33 expected. The guidance for q3 wall street was hoping for something close to 6. 5 billion. Qualcomm guiding to a midpoint of 5. 8 billion and an adjusted eps, wall street wanted 1. 14. Qualcomm got into a midpoint of 93 cents. Qualcomm saying in the release, im just taking a piece of this from the ceo, we are reducing qct outlook, chips, primarily due to the increased impact of customer share shifts within the premium tear. And a decline in our share customer. Read that as they didnt get the galaxy s6 from samsung. In addition to our ongoing expense initiatives, we have initiated a review of the cost structure while at the same time extending our leadership position. They are under activist pressure as they deal with the shifting winds, kelly. Thank you so much. Jon fortt running through the qualcomm numbers for us. Whats the numbers, facebook at t and qualcomm. Facebook, i think theyre benign. People are caught up in the revenue numbers. Kayla tausche tweeted out, expenses up 83 yearoveryear. Big concerning. This stock cant get above 85. Its tried a number of times. I think the stock is fine. I think its going higher. Well see how it trades tomorrow. We talked about ibm fading move to the upside. That turned out to be right. You fade the move to the downside. You want qualcomm march 13th when they announced a 15 billion stock repurchase after the close. The stock went from 72 to 75 gave it all back the next day. Hasnt recovered since. That thats been since july. Burn guy. Dr. J. I am agreeing with guy on almost every point, kelly. I think that facebook is a buy. Im long upside call spreads in the name. Im long next weeks calls against this weeks calls. Its a calendar spread. Im doing that because i think after the noise settle down this is going to be viewed as a very positive quarter. Daily active mobile users up 31 , almost 32 . Thats a blowaway number. I mean, that is so much better than anybody on the street was looking for. That is what facebook and twitter are all about now. Daily mobile users. Fair point but ed lee, mark mahaney from rbc did tell us this morning, the key number to watch was advertising Revenue Growth. It came in at 46 . So that pretty much does give you a key into this negative reaction after hours. But to dr. J. s point, should we be focused more on the continue user growth than on the metric . I thinks there two things going on, all right, theyre missing a little bit on the edge. I think their growth is healthy as evidenced by active Monthly User Base thats growing and growing. At a certain point they need to start figuring it away to monetize users much more efficiently. We dont have as much visibility into their strategy around that just now. The more color they give us the more information they give us will be helpful. Until then you have a big user base. Whats the rpu so to speak, in terms of this is a if ig we look at. For facebook, well have to start looking at that as well. Lets bring in our older statesman. Kevin oleary, larry kudlow. What should people at home be making of this earnings deluge . What say you . That serves as an introduction nowadays. Wise and experience. Im sitting here quietly and politely and i get slammed. Heres my take on facebook. 18 months ago this stock was decimated in a teenage mode at 17 bucks, i recall. It said it would get itself into a mobile metric and past 50 . Its almost at 70 mobile. So the company made a promise, they executed on it and now were just talking around the fringes. Do they monetize instagram . What do they do with the user base . They made the big leap. If youre an institutional player and want exposure to this sector, the heaviest waiting is in the name. Its liquid. This thing goes higher. Larry . Can i give you a quick macro call . I dont know about these stocks. All ill say is this the market is basically trading sideways were not far from the highs but were not crashing either. People are trying to figure out, are we going into recession or is it bad winter numbers . I say no recession. Are we going into a boom . No. Do we have inflation . No. Strong dollar low Energy Prices going to turn out to be big pluses. Even if its a head wind as were seeing in these results. Some companies werent prepared to or dont know how to hedge. All right. All their other costs are coming down. Everything they buy is cheaper because of the strong dollar and to me that is ultimately bullish for the stock market. I say buy any and all dips. Well leave it right there. Thanks to edmond lee of recode. Be sure to stick around and catch guy adami with the fast money crew at 5 00. Theyll have the headlines from facebooks earnings. It kicks off at 5 00 p. M. Thank you, guy. Later, kel. Should you buy yourself . Well hear the bull and bear cases on this being a hot stock over the past year. Youre watching cnbc, first in business worldwide. O retire in 15 years. Wow youre totally blindsiding me here. Whos gonna manage your accounts . This is a devastating blow i was not prepared for. Well, im gonna finish packing my things. 15 years will really sneak up on you. Jennifer with do your exit interview and adam made you a cake. Red velvet. Oh, thank you. I made this. Take charge of your retirement. Talk to a state farm agent today. 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. Facebook reporting its Quarterly Results, this after shares today close at pretty much an alltime high. Theyre down after hours under pressure to the tune of 1 . Back for more now, sayrerah henley. With a little more time to look through this and the discussion about needing to monetize are you still confident in the growth of this Company Without that ad Revenue Growth coming in quite as high as expected . Yes, so just to make a couple comments here, looking through the details of the report as it continues to come out, i feel increasingly confident. We saw better user metrics across the board than expected. We also saw adjusted ebitda than expected. I feel comfortable with the report right now. Waiting on more from the Conference Call and a deeper analysis of the numbers. Kelly, this is a longer term story than simply a shortterm look at early montization. Whats happening is a makeshift to higher value video advertising, which is an important trend to watch. Colleen, we were just talking about this with dr. J. He raised this concern that maybe facebook was offering cut rates to get video advertisers on board. Will they be able to increase those rates and show its effective for people to migrate . Certainly. I think thiscy more competitive world now than ever. I think we need to see facebook retaining its edge. Im concerned about that on the video costs here but also just in general and its product development. I think the numbers from facebook are encouraging in terms of user growth. We have to remember that a lot of that has been acquired through the years. Facebook is essentially becoming a holing company for popular apps likewhassup own others. Id like to see Better Things coming out of facebook that its growing inhouse but were not seeing that quite yet and thats concerning. Steve, for the both well go to the ebay Quarterly Results which are just now hitting with joshua lipton. Ebay just reporting. Ebay reporting 77 cents on 4. 45 billion. The street was looking for 70 cents on 4. 42 billion. A beat there on the bottom and the top. Just looking through the numbers, kelly, marketplaces total revenue, 2. 87 billion. Payments total revenue, 2. 11 billion. As for guidance, q2 ebay seeing eps of 71 cents to 73 cents on 4. 4 to 4. 5 billion. Fullyear guidance the eps in line revenue a bill below at 18. 35 to 18. 85 billion. This Conference Call kelly, starting at 5 00 p. M. Eastern. Well be on it. Back to you. Thanks, josh. That makes ebay the biggest mover after hours. A cleaner top and bottom line beat, it looks like than what weve heard from the rest of the pack so far. Lets pivot back to facebook for just a moment. Carol, you were going to jump in here. Yes i wanted to go back to sarah for a question. I think the numbers are strong the execution has been good. The question i have is valuation. Within you look at the market cap of this company, is it justified based on the longterm story you were talking about . Sarah . You have to look at facebook within the context of the overall market which is seeing a significant shift to Digital Advertising. And when we look at the valuation of facebook, we prefer to look at it on an ev to ebitda basis. Im not concerned about valuation here. Although i do acknowledge with growth companies, there is less room for any margin of error. I think what you need to be considering is the Bigger Picture. And the Bigger Picture is how do advertisers in particular branded advertisers capture consumer time . Which is increasingly not just digital but also mobile. Facebooks mobile platform is extraordinarily robust. Kevin, this goes to your point. There are monthly active users, 1. 44 billion, 1. 25 billion of those are mobile. My concern, though about the advertising argument translating from other forms over to digital is if you just fast forward and moved it all over to facebook, took every dollar of advertising on earth and put it on facebook it would still trade as every dollar of advertising on earth, which is basically 14 times multiple. So at some point that transition is going to occur, which is why a company like this, when it starts to slow on any metric should start paying a dividend. Then i might buy the stock. Im the kind of investor that would look at it as a join the utility, a cash flow machine. Its a speculation that somehow its going to garner huge share of Digital Advertising and youre paying a crazy multiple for that. When it comes home to roost, its going to find itself in a nasty place over value. Thats what i believe. Larry . Can i mack a comment on that . Im no expert on facebook. Growth is you are going to figure out a way to be more efficient at advertising by being able to target this billion plus base with the things they want to buy. You have to believe that larry, or you wouldnt believe this stock. Traditional advertisers dont have that ability. We dont have a cap to the user base. There may be a you dont know some person in japan colleen, well get back to you in a sec. Lets broke in with Julia Boorstin who just spoke to facebooks ceo. I spoke to the cfo and he said it was a great quarter for the company, off it a strong start for the year. He pointed out that growth was very strong in the face of a tough Foreign Exchange rate situation. He said ad revenue would have increased 49 excluding that situation. The Foreign Exchange currency rates. He pointed to two key things theres a huge engagement story. The percentage of daily active users compared to monthly active use serz 65 . Saying thats a record level for the company. And that theyre seeing great engagement across all geographies. He also said theres a strong mobile story going on with 798 Million People using it on a daily basis. He said that its up 31 yearoveryear calling it the largest mobile audience in the world, saying that mobile is the key driver of growth. The company is continuing to capitalize on the shift to mobile. Waner also said they think they have the best mobile app product in their market and they think its Getting Better and thats driving great performance. Theyre pleased with both advertising growth and the user growth. Of course on the call we may hear questions about where the growth is in terms of video advertising as well as potential in instagram advertising in two newer areas for facebook. Waner pointing to engagement and mobile growth. Kelly . Julia, thanks very much. The shares are only down 0. 5 after hours. On that slight revenue top line miss. Colleen, you were going to jump in here. I want to give you a chance to reflect on what kevin oleerily was saying. Yes. Thanks kelly. Larry was asking where the growth might be coming from. I think the one thing facebook is banking on is expanding the potential number of people that may be using its service. We saw big ideas out of facebook about these large sort of floating drones that could bring internet to parts of world that are currently not as well connected, places like africa and rural south america, these different places. I think what facebook is really banking on is just getting more of the 8 billion people in the world online and hoping that those people will also be interested in joining facebook. Thats the big idea here. Again, i also think thats a big bet. It sounds like project loom. What google has done to float balloons into places that otherwise wouldnt have had access to wifi. To kevins point where the market is paying more for the possibility than the reality. As we get closer to reality, i think as the market sort of evens out to a more normalized level, thats when well be really testing whether these valuations are realistic. Well leave it right there. Thank you. We appreciate it. Thank you. Thank you. It took five years to allegedly arrest the person behind the flash crash of 2010. Ben willis joins us, next. And angies list ceo William Oesterle tells us how the Consumer Review site plans to reverse that trend. Thats later on the closing bell. You have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . 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. We begin with a news alert on the flash crash with bob pisani. Were getting a response from the cme regarding that case which caused quite a stir yesterday. Heres what they had to say. We did a thorough analysis of all activity in our markets during the flash crash and we concluded along with regulators that the flash crash was not caused by the futures market. If new information has come to light, we look forward to reviewing it with the commission. Thats a pretty serious retort. This is awkward for the cme. Remember, the cftc the Commodities Future Trading Commission yesterday said a london trader was attempting to manipulate the u. S. Futures market and that that manipulation attempt was at least a partly causative factor in the flash crash. They didnt say he caused the flash crash. They said it was a contributing factor to that. All this is difficult and it sets up a little bit of disagreement between the cme and the cftc. By way, we were wondering why they wont release information on sarao. They said we are prohibited by law to release information about any individuals trading behavior including mr. Saraos. Were unable to comment further at this time. A disagreement between two very important organizations. Back to you. I might venture this is more than awkward. Its deeply troubling. Thank you so much for that update. Well talk about it right now. Lets get more on the flash crash. Joined by ben willis from princeton securities. Perhaps we should begin with this news and the cme is trying to say, dont look at us. The cme has to say it. Their revenue stream that they derive from these traders, theyre paid tens of millions of dollars a year to provide a broadcast, to advertise the supposed liquidity they have at the point of sale. Its called their order book. The New York Stock Exchange has a similar product called the open book. The New York Stock Exchange gets tens of millions of dollars a year by selling the information that i provide by bringing customers to this floor. What happened in the crash, the trader itself didnt cause the crash. Ill venture to say be he sold very little but he because the cause, the same reason somebody may have jumped out on a highway to cause somebody to swerve and cause fatalities. I dont doubt the waddell reed using the system that is sold to millions of market participate errants saying i am a large seller in the marketplace, that called the algorithms that triangulate. This is not beyond doubt. The cma report is more than this. Theyre putting their reputation on the line. I dont think its just because of subscriptions. Everyone is acknowledging, youre acknowledging it pisani is acknowledging it youre acknowledging it that this guy alone didnt cause it. It sounds like the stuff he was doing, the volume is not big enough. The u. S. Justice department which has lost virtually every one of these cases, including Insider Trading cases, okay theyre accusing him, theyre criminally charging him with wire fraud, commodities fraud and manipulation. They have a lot to prove there. I think this is a massive overreaction. Theyre using the wrong law. The martin act wassence stuted in the state of new york in 1921 preceding the creation of the s. E. C. It is held up under Appellate Division multiple times. Under the martin act this is a criminal act. You only have to show intent to be a bad actor. Isnt it true at that time when this was occurring every guy and his dog was larry. Right. This was a standard strategy. Which is why the cme had to make the statement it made. Why pick a guy in london who i predict will never, ever be convicted of this if he gets a good lawyer. This is the ultimate pr scapegoat move. It was a guy over in london that nobody knows, its not connected to anyone who caused this which is absolutely ridiculous. Hes been using the same algorithms it sounds like for five years. It sounds like it was a good pr strategy. The law was it doesnt mean its a violation of the law. The martin law cannot be used for this. It will be superseded by blue skies act of 1934. Heres my bigger point, very important point. The u. S. Justice department in recent years has gone over the edge in trying to nail anything and anybody related to wall street and financial markets. You know what as i said before they have lost virtually every case including pete brarr, hes lost all these Insider Trading cases. He won a bunch of them but started to lose on appeal. You didnt win them because you lost them. Where have we heard that before . Heres the point. They are trying to nail wall street. I think theres so much politics behind this an we should not ignore that fact. I am wall street and i want to nail this guy. Youre entitled to your opinion. This is a criminal act. We see it time and time again because of the naked Market Access whats the krimcriminality . It was his intent to say he had a large imbalance. Thats manipulation. Were out of time. This say judgment issue. T. Is not a judgment issue. He might have been a prankster for all with you know. Its a criminal act. Inten. Martin act is intent. I could see possibly a civil prosecution here. Which is similar to martin act. Thats different than criminal. Hes not visiting miami any time soon. Ben willis, thanks for joining us. Ben willis from princeton securities working as a human on the floor. Heres sue herrera with cnbc news update. Carly fiorina is running for president and plans to launch on may 4th with an online announcement. She will hold a Conference Call for the National Press and the republican is the former chief executive of hewlettpackard. New york city marked earth day by announcing an ambitious goal by reducing its waste content by 90 by 2030. A michigan woman sentenced to three to seven years behind bars for opening fire on a mcdonalds in grand rapids last year. This after workers twice forgot to put bacon on her cheese burger. Fortunately in that incident no one was hurt. Michelle obama fielded hugs and questions from children of white house employees during a take your daughters and sons to workday. One child asked the first lady how old she was. And when she answered 51 the little girl said she looked younger than that as you can see, she got a big hug. Thats it for your cnbc news update this hour. Back to you, kelly. She does look a lot younger. She certainly does. She looks great. Investors giving angies list good reviews for surprise quarterly profit. The stock soaring off those results. How is the company competing with rivals who offer similar review services for free . Bill oesterle joins us in just a moment and petrobras just minutes away from releasing its long delayed audited Quarterly Results. The Company Expected to reveal it was ripped off for billions in a brazilian corruption scandal. Could it get worse from here . Stay tuned. You dont want to miss this. 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. More earnings. Texas instruments back with more Quarterly Results. The stock down 6 in afterhours trade on those numbers. Earnings missing on the top and bottom line. Earnings of 61 cents a share, a penny shy. Revenues missing 12i789 inging estimates as well. They are providing Second Quarter guidance below estimates. Analysts were looking for 73. Revenue of 3. 12 to 3. 38 billion, below estimates of 3. 43 billion. A couple things that hit the companys earnings in the Second Quarter was weak demand for pcs and forex currencies. Angies list surprised everyone with a great Earnings Report. The stock soared. Joining me now is bill oesterle cofounder and ceo of angies list for you anyway bill. Welcome to the program. Thank you, kelly. Does this mean the Housing Market is on the rebound and everythings going great . Is it a reflection in other words of the broader environment or operational improvement youve head . I think its both. The broader environment is good. Weve been focused on efficiency and investment in future growth. We want to deliver profitability and deliver growth at the same time. You, though bill are not going to be there for too much longer. When is your tenure up . Yes. Ive announced that im going to be retiring. Thats maybe ive been doing it for 20 years and ive got some other things that are important to me that ill be working on. I wont be departing, however, until we have a good successor in place. Are you going to be the next senator, governor of the state here . Talk a little bit about your plans. The roux lijs freedom acts that became a touch point nationally in terms of peoples concern about its ability to discriminate against gays and lesbians was one of the reasons you vocally, being a real face of indianapolis and Indiana Business said its got to go. Is that part of your motivation to get more involved innic mr. S . I have some history in political work. I was fortunate enough to run a Gubernatorial Campaign in 2004. I was disappointed hoosiers are much better people than they were portrayed in that process. That was a poor judgment by leadership and i really think something needs to be done about that. I harbor delusions that i can go actually change some things. This is something that actually goes back to a Supreme Court ruling in 1990 interpreting different amendments. It could take a constitutional maybe amendment to protect against discriminating against gays and lesbians. Is that something youre going to go after . Well theres there are all sorts of i think there are a number of ways to provide and ensure that discrimination is not a part of our state. And there are many ways to do that. It just needs to be accomplished and we need to convey to the world that people in indiana are what they are, which is wonderful, caring and accepting people. Bill also you had big expansion plans that as i understand it, have now been scrapped. Can you explain where the business stands . What kind of expansion you are planning in your area . How many jobs you might be adding or is all of that on the shelf for now . No. What was specifically we were going to be participating with the state to set up a new headquarters operation. We were going to rehab an old building that was in our neighborhood an old ford model t plan the. Weve simply said were not going to engage in that partnership while this is going on. And so we still are completely committed to the city. Were completed committed to adding our commitment was for adding over 1,000 jobs. I believe angies list can do both of those things. We are unwilling to engage with the state in that process until they get this resolved. This being . This being essentially either a full repeal of the legislation or protections in state law for basic human rights. And rfra is religious freedom restoration act we were discussing. Thank you for being here this afternoon. Thank you very much for your time. A Strong Quarter for angies list. That was ceo bill oesterle. Qualcomm jon fortt just spoke to the companys ceo. Steve mullenkof had a lot to say. He said what changed is apple and samsung are Even Stronger than theyve been in the past. Stronger than they appear to be last quarter. Other manufacturers are adjusting phone release schedules around those two. That means less revenue flowing to qualcomms chip business. He also said hes confident in the snapdragon 820 which is coming in the second half of the year. Of the licensing business is rebounding faster than expected. So they moved up the midpoint of their guidance for that business. But he also talked about the cuts that theyre in the process of evaluating. I asked him whether attrition or straight up head count and business cuts would be involved. He said theyre Still Deciding on that. Theyll have an update on what types of cuts three months ago. That does make it sound like its potentially significant. Apple and samsung doing quite well in the premium tier right now. Thats whats causing samsung to bring down guidance kelly. Thank you. Those shares down more than 2 after hours. The earnings parade marches on. Today we did see the likes of facebook, ebay and at t. Up next well recap the action and how the afterhours trading looks thus far. Isis its on the move and pentagon is under fire for releasing a map to the media. Amidst territory taken by the terrorist group. Well talk to Judith Miller about this latest flap and the fight against isis. Back in two. Financial noise financial noise financial noise eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. 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. Its been another huge day for earnings. Mary thompson rounds up the afterhours numbers. Facebook, First Quarter revenue increased by 42 but fell short of expectations. Monthly active users, just over 1. 4 billion. At t earnings beat expectations by a penny while revenue missed. Poor wireless subscribers increased by 441,000. The Company Expects its directv deal to close in the Second Quarter and it upped its expectations for savings from that deal. Back to you, kelly. All right, mary thank you. U. S. Warships have been deployed to International Waters near yemen to monitor ships from iran. Well discuss the impact on the region. Up next closing bell, back in two. Good. 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. Building aircraft, the likes of which the world has never seen. This is what we do. Thats the value of performance. Northrop grumman. Conflict in the middle east raging on as the u. S. Tries to control the spread isis. Negotiations continue between the u. S. And iran on a nuclear deal that is currently in the works. My next guest is other of the story, a reporters journey. She knows better than anybody how untrustworthy kit be when we talk about the middle east, the players involved and right u. S. Policies to pursue. Welcome. I know youve never been to the Stock Exchange. And i live ten blocks away. This is an interesting time four to join us. Youre on a redemption tour. No set the record straight tour. Set the record straight tour as you say. What have you learned from the misreporting, misinformation of the past ten years during your time as a reporter for the new york times, discussing events and knowledge that got us into the iraqi conflict and in retrospect was wrong or your confidence was misplaced. I learned a lot about our Intelligence Community is that the very same people that warned us accurately about Osama Bin Laden and the athletethreat of al qaeda and they were ignored and warned us we were vulnerable to anthrax and terrorism attack and were ignored same people warned us about the existence of wmd in iraq and at that time they were wrong and they were believed. So to me tracking what happened to the Intelligence Community and helping people understand how it happened and why it happened was a very important part of my goal. I also learned about journalism because it used to be we just concentrated on facts like closing bells or stock prices. Now our press has become as politicized and polarized as our politics. Thats not a good thing for the American People and not a good thing for journalists. First of all, youre very brave. Weve known each other since graduate school. When i was 5. As a professional. But you put a good piece in the wall street journal, setting the story straight on the iraq story and you said look the whole world assumed that Saddam Hussein had weapons of mass destruction. So can we put an end to the idea that george bush and others lied . Thats what i tried to do in this book. I tried to look at this bumper sticker. They lied people died and say hey, my fellow americans thats not true. Its worse than that. 16 intelligence agencies paid billions of dollars a year to get it right. Got it wrong. And you ought to be more upset about that and you shouldnt be comforted by the notion that somebody lied us into a war because i dont believe they did. Heres was discomforting. Towards the end of the book you say it. I could, i could not imagine Saddam Hussein would give up weapons or ability to make them once the National Pressure had subsided and as others have pointed out this is a bias of yours that you had going into and that you maintain throughout all of this, your complicity in what happened feels like we need to hear a mea culpa. Quite the opposite. That sentence at the end is at the end of the book where i take you with me hunting for womens in iraq with the soldiers who did it. When i take you with me to iraq in 1976 and 89 when i covered the dead bodies from sirin that were being lifted out of mass graves in iraq and i thought about those being americans, any civilian being killed is horrible. Thats what i was worried about. Could this happen to us . Thats what i think drove the intelligence analysts though i cant get inside their head. I just know what they told the president was wrong. I want to ask you, one of the thing you said was that the media has become politicized, the reporting has become politicized, it needs to change. In the interim when we go through the process making it change is the takeaway for the reader to be skeptical. Absolutely. My colleagues at the times we try to do this. At fox news. This is not at that Rolling Stone situation where tough questions were never asked. We did. The minute we got new information that contradicted what we published we published it and i did that again and again. I wanted to do it now to say with the passage of time what did we get right and what did we get wrong and why. Well leave it right there. Judith miller. Coming up Brazilian Oil giant petrobas will report earnings in ten minutes time. Well talk about the massive scandal surrounding the company and the country when we come right back. Rmined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Welcome back. Just moments away here from petrobas reporting its much anticipated earnings. These are the Quarterly Results that were postponed from december as a major scandal continues. Fast money will have complete coverage. Today nearly historic day again in the stock market. Dont look for the headlines but look at that. The s p up ten points now just ten points shif its all time highs. The nasdaq about 13 points away from its all time highs. As mentioned Global Markets as well setting some records here japans nikkei index closing above 20,000 as well for the first time in over 15 years. My thanks to the panel this hour. A feisty one but very much appreciated. The earnings parade continues on fast money with melissa lee. Were monitoring the Conference Calls traineders, these guys will give you trades to put on tomorrow morning. Have you noticed teslas move. Up to almost 5 . Were is going to trade that stock. Wow. A lot of under the radar stuff. Look to you guys to high like it. Over to you. Fast money starts right now. We start off with breaking news. Minutes away from getting earnings from petrobas these are numbers that were supposed to be released in december 2014. They have been delayed because of a massive scandal surrounding the company. Michelle carusocabrera is live outside headquarters. 0 will bring us the news as soon as it breaks. Facebooks Conference Call is starting now. The stock is falling. Bob pack is listening to the call now. Qualcomm, at t reporting after the bell. Allbig movers in the after hours. Well tell you,000 trade these stocks and follow the Conference Calls