Transcripts For CNBC Closing Bell 20160314

The broader implications for china coming up. This is a company that already owns a landmark in new york city and youve got another chinese firm already been buying up theater chains around the country. They are making big moves in the u. S. The same company was already just going to buy a portfolio of assets from black rock. Its incredible how much deal making there is out of china. Well get to my interview with Jeffrey Ubben and what he thinks about the ceo of valeant and 21th century fox and netflix and the move in oil. Its all coming up in a cnbc exclusive. The office is stunning, gorgeous. Leave it at that the. Where some of the money went, i guess, how nice for them. Plus, ohio and florida of course the two key primaries coming up tomorrow. Well tell you whether any candidates can potentially beat donald trump in those states and how the results could affect businesses there. Lets start with this story out this morning in chin ease company on a shopping spree in the u. S. Tell us about this, susan. Maybe one or two things. Same company and not just one deal but were talking about two u. S. Hotel deals for chinas unbong group. 6. 5 billion reportedly for Strategic Hotels and resorts and this is on top of the close to 2 billion that they paid for the waldorf as tore ya and they have an insurer they pay 1. 6 billion for. Its diversified and anbang isnt the only Chinese Company investing in the u. S. This year we saw ge already sales of Appliance Division in a 5. 4 billion deal. Another includes chinas richest man, paying up 3 3. 5 billion fo Legendary Entertainment and remember the company that bought the theater chain amc and listed it back here in new york. Who can forget that pork deal in 2012 was the largest chinese acquisition in the u. S. Smithfields for 4. 7 billion, 2016, only three months in. Its already expected to be a record year for mergers and acquisitions involving chinese money in the United States. Were already sitting at 105 billion buying up companies all around the world and thats already in the first three months, base he canically the s amount we saw for the entire year. You know theres a lot of money going around. The question is what is driving this . The consensus is it looks like its a backdrop of uncertainty where the currency might be going and pushing Chinese Companies to get their money out of china, maybe look for higher returns elsewhere and buying up hard assets in the United States. Have you heard any pushback to this point in the United States . As you point out, you have all of this chinese money pouring in here anbang already bought the waldorf and want to go after starwood even though marriott had a deal for them. Other company that bought out landmark bought amc and now buying car mike. They are making big bold moves in Certain Industries but are you hearing about any u. S. Pushback at some point . Well, not at this case because we remembered unical, that was many, many years ago. Since then, i wouldnt say there has been a lot of resistance for Chinese Companies coming in, for instance the ge deal, signed with electrolux in sweden, and that was nixed and chinese buyer could come in. I think times have changed, bill. I guess so. Susan li, thank you. Lets get to the closing bell exchange. Ken more af from Money Matters and keith bliss from cuttone and company at post nine there they are and rick santelli, back at hq, all over the place here today. Keith bliss, the dow is up 39 points, i guess were sort of in wait and see mode right now. We are. What are we waiting forward to see . All of the data and fed meeting is coming this week. And i actually think the market is in a real Decision Point for 2016. Theres a lot of debate, im sure youre reporting on it last week, the sevenyear anniversary and the real debate, is this a cycle cal bull or secular bull. Whats your bet . Right now i can make a argument for both of them. I can see the reason for both sides. Looking out in 2016 we have more head winds than we have tailwinds if youre to press for a beat, i would say cyclical bull. How does the fed factor into this, they arent expected to be doing much . I think the market isnt expecting enough. When i look out at the world. We could be disappointed in growth or looking for more growth but the reality is weve had basically a 2 economy for a long time. Its consistent. Its underperforming but consistent. I dont think the belly of the plane is going to touch the ground. I think when you look at the metrics that the fed underscored themselves and unemployment rate, i dont put much stock in it but they do. When i look at the world conditions and they are a bit spongy and equity close to unchanged and 10year and see it still down 33 basis points on the year, i dont know how they can snug up more and normalize. Ken, you are holding to your belief that we are in recession now and that the dow is destined for 11,000 by the end of this year. Whats going on here . Well, im not a believer in this market right now. I remember back in 2008 when we told our clients to be out of the market, we saw the rally that came between february and may and saw an 11 , 12 rally over that two or threemonth period and everybody thought the problems are over and were headed for sunshine and boxes of chocolates but the reality was not the case. All i see right now, slowing Global Economy and trend line on growth for Corporate America is in a bad direction and the trend line for the growth of our economy right now, 1. 7 is the best estimate ive seen. So im not a believer at all in whats going on right now. I need to see a change in all of those things before i start becoming a believer. Keith bliss, meanwhile, where are markets taking a cue . Oil prices and coming back to china and what kind of rhetoric we might hear out of that legislative meeting . I think it is, you still have to look at oil prices, were putting a bit of i wouldnt say gloom but keeping markets in check today. Were still working off pretty good momentum we saw coming into the market from the february 11th lows and that will take time to get out of the way. As long as oil vas lates back and forth along the 40 handle well have sporadic markets in here. On a longer term basis, i would be a little suspect about getting very long in the market. Rick, we learned a little while ago that Vladimir Putin is ordering the withdrawal of troops out of syria. And im a little surprised we didnt see much of a market response. If memory serves, when those troops went in, there was a market response at that time, one of the few weve seen in the last few years to a political geopolitical situation. Why dont you think we saw a response today . Now, youre one up on me on terms of the detail of the news. Right off the top of my head, i would say theres a trust issue. Is this whats actually going on on the ground . A promise over time well know more. I think above and beyond that, i think the gee toshio politics has gotten to a point it was a 212 degrees but we werent boiling feverishly. As we turn the heat down if thats whats occurring, it makes sense, maybe some of these countries so energy dependent or starting to cry uncle, maybe theyll play a little more fairly in other areas but i think the common denominator is, they are nervous that growth isnt enough considering how much we spend and how much we take in. No matter where your economy is located. I mean this has been a flash point, this area, right . All of these the countries involved in trying to either topple assad or get rid of of the isis threat there or the rebels that are there, but now they are starting to talk about peace talks in geneva and even the head of the rebels group in syria said if russia is pulling out, that is a promising start to these peace talks. It would appear trust aside that peace may be breaking out in syria to some degree there, keith. Markets are taking it in stride. Theres a couple of things to point out. Weve become conditioned to hot geopolitical spots getting worked out and nothing happens at the end. But also bear in mind on vp vp, were only 100 points from the alltime high. I dont think anybody is willing to say thats something thats now cleared the decks weve been worried about for a couple of years. There are other things were now more worried about inside of this market. Aint that the truth. Indeed. Gentlemen, thank you all. Appreciate your thoughts on todays market action. We have breaking news on a scandal at Sequoia Capital right now. Josh . Bill, it is a court case that everyone in Silicon Valley is talking about. Michael goingen was a long time partner and fired after being hit with a sexual abuse lawsuit. It was a disturbing suit in which a woman claimed she was abused sexually and physically and for over 13 years, starved and beaten. As compensation mr. Goguen paid 30 million but only paid 10 million. The claim that he is filing a counterclaim that this woman was consumed by anger and obsession and jealousy after their mutually consensual affair ended and submits number of emails and texts to back up the claim. Part of the reason were talking about this is his long time affiliation with Sequoia Capital, one of the most storied firms, having backed apple, linkedin and yahoo among others. He invested in networking and semiconductors and on the board of inflow box. Well known here in Silicon Valley. Well keep following this case and bring you more headlines as they come. Back to you. Josh, thanks very much. Weve got 48 minutes left in the trading session here. Not a lot of volatility, 70point range for the dow top to bottom today as we await all of the Central Bank Meetings coming up. Allstar lineup coming up here on the closing bell. Kelly scoring a rare interview with valueact, Jeffrey Ubben, giving her the latest take on oil prices and Single Energy stock that he owns to make money in that beleaguered space. Well speak with sherman peshawar, when he thinks the Ride Sharing Service should go public and john zimer, the cofounder of lyft will talk about the timing of his own companys ipo and whether theres space in the transportation tech space coming up. You dont want to miss this out of San Francisco today on closing bell, youre watching cnbc, first in business worldwide. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Woman man yes. A newspaper . Woman its quaint. Man did you read about this latest cyber attack . Woman yeah, i read it on my watch. Man funny. Woman they took out the whole network. Man they had to hand out pens and paper. Woman yeah. Man could it happen to us . Woman no. Were okay. Man we are . Woman yeah, we brought in some new guys. Man what do they know that we dont . Woman that you cant run a country with pens and paper. Its not just security. Its defense. Bae systems. Welcome back, kind of a quiet session leading to what will be a volatile week tomorrow and wednesday. Bank of japan and bank of england and others. Lets check out the major averages since the socalled diamond bottom on february 11th. Jp morgan chase jamie dimon announces he purchased 500,000 shares of his own bank stock. Since that time, the dow and s p and nasdaq have all gained ground. The best gainer has been the nasdaq up 10. 9 in that time. Kelly evans. Well, the cover this week asks if Value Investing is back. Jeff ubben is known for his Value Investing style. Hence the name of the firm value act. In terms of activist community, he has that huge impact on Companies Like microsoft and valeant and 21st century fox. We sat down for rare interview at his offices, light of zipgss this week i started out by asking how Central Bank Action is impacting his role as a stock picker. Heres what he had to say. In the last year or two, the recurring revenue cash flow in good times and bad, Model Company has been increasingly priced away from us. The opportunity crossed is 1 and 2 and i can get a nice predictable cash flow stream at 10 , thats just too rich. Our current return is increasingly not available to us. At the High Quality Companies that we seek. So weve had really we have been selling a number of our companies where weve been there, kind of done all we could sold some ci, microsoft. Its been hard to redeploy that. The only high quality business we have found in the last 12 months is rolls royce, which where the stock is down by half. And this comes in a year you were down 2 last year and s p was up. And largely speaking it was because of the fang stocks. You had facebook and amazon, netflix google, the names the Value Community hates. Why does it seem does it make your job easier or harder when thats the case . I understand the returns may not look as good its hard for a value person. We started in 2000. This was what happened in 2001 when you had or 2000 when you had more market cap go to fewer and fewer names and sucking money out of value stocks. Then what happens is the valuation bubble bursts, right . And spreads out into is that whats happening now do you think . Maybe. Right, maybe . Certainly last cycle the valuation bubble was largely public. The Companies Went public much faster. And the money came out really fast. This time more and more companies are private. So i think the bubble will burst slower. Is there going to be a price at which some of the netflixes of the world do look attractive to you . Our goal is to take a trailing edge company like adob bee and microsoft at ten times earnings and make them go from old tech to new tech. Both of those cases adobe was considered down because jobs didnt put the flash on the iphone. We were like put html in the suite and youre fine. Microsoft was viewed as defending windows with office and they should have just let windows go, open up, so went from old tech to new tech. If you look at fox, its much more interesting to us to own fox at eight times and 12 and 13 times earnings and move from old media to new media. Im guessing that involves going to direct consumers because your letter talks about adobe and microsoft and says the key is to identify companies to get rid of the middleman that might be destroying the relation shep between the company and customer. It would see Media Companies are a perfect candidate to that, to really own that relationship. It would be surprising that the aggravator wins but if he develops his own great content which netflix maybe can do. They have enough cash. Do you watch house of cards. Ive seen it a little bit. Not crazy over it. How about rupert murdoch, do you have confidence that leadership transition to james we think james is terrific. He is the young antiestablishment sort of ceo that can be part of our change. Is the Halliburton Baker hughes deal going to happen . If the deal does happen were going to do really well. Well get a 25 spread. If the deal doesnt happen, i think people may have lost track of what happens to bakers Balance Sheet when the cash comes in from the break upfee. And we think that the products in the technology are best in class. So we kind of feel were sitting close to asset value, which gives us a pristine Balance Sheet with levers at the bottom. We think its were actually pretty excited about the other side of oil is interesting, people say its going to maybe go to 55 and hang out there. No way. With the disinvestment weve seen, it will go it will between now and 2019 it could the marginal barrel could easily push it to 100 again. Really . Thats that much disinvestment, right . Everybody has been fire or let go. The ability to bring these barrels on quickly will be very difficult. What would you say to people who have this view of the market and add barrels in a second to meet the higher price . Look at the loss of people. Whos going to be there to drill it and to you look at the loss of people and look at the companies that have basically leaving the industry and the when you dont run a pressure piece of equipment, it gets can balancized and goes away. Theres a rampup that will create a tremendous sweet spot, certainly north america for halliburton. And globally because very ka that are tick to get the excess supply out of the system. Who else then . Because the valuations of so Many Companies are trading at levels you must be walking through every day . We like to sell bulls tore the warriors. We dont want to be the warrior and kill ourselves. Were more Service Oriented and the inward Balance Sheet focus, baker hughes is the only place were interested in playing right now. So there you have it, thats the first part of my interview this morning. I should mention here, when people are talking about whether stock picking still works and Value Investing still works. Heres a company they have a 15. 5 annualized rate of return were talking about through a period that encompasses the Great Recession and then some. He only holds a portfolio of a dozen stocks at a time. I guess there is still a resounding answer out there in the Investment Community in terms of how to make that work. Value investors are a special breed, they would make great chess players. They do all of the homework but they are trying to think two and three moves down the road within the game and they place their bet but then they have to be very patient to watch and see that that what they think is going to happen actually unfolds. That was a great interview because thats exactly what hes doing, hes making bets on companies and anticipating whats going to happen down the road, right . They also tend to be quite conservative. Really caught my attention when he was talking about oil price there, not necessarily assuming that the current level that were looking at is going to persist but saying with the shortage of people, the labor shortage importantly across many of these places but fluctuations in volatility back up to 100 a barrel could be the new normal going forward. Great stuff. Youve got more coming up, right . Part two of that exclusive interview with Jeffrey Ubben in the next hour of the show. Thats when we talked about valeant. One of the biggest, longest investments, big backer of the ceo and remains one even as we read about more tension over his role. The rest of that interview coming up next hour. Looking forward to that. As closing bell goes coast to coast. On the east coast, the dow is up 50 points, much more to come from San Francisco. Kelly speaks with the cofounder of liyt about the Ride Sharing Services ipo plans and battle for market share with the big one, uber. Joined by adel alsayed to discuss holding in lyft. The road for the white house reaches a critical juncture as their home states gear up for primaries tomorrow. More on the high stakes battle coming up on closing bell. Thank you. Imagine if the things you bought every day. Earned you miles to get to the places you really want to go. With the united mileageplus explorer card, youll get a free checked bag, two united club passes, priority boarding, and 30,000 bonus miles. Everything you need for an unforgettable vacation. The united mileageplus explorer card. Imagine where it will take you. For your retirement, you want to celebrate the little things, because theyre big to you. And that is why you invest. The best returns arent just measured in dollars. Td ameritrade®. Theno one surface. Out there. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. President ial candidates marco rubio and john kasich battling for their political lives in their home states tomorrow. John harwood joins us as both are working against the frontrunner dondal trump. Ted cruz says hes responsible for the specter of violence his at his rallies, but hes heading towards a big election day on tuesday, arguing that republicans need to get behind him because hes changing the party in a good way. The biggest story in all of politics worldwide is whats happening in the Republican Party in the United States. Were taking from people that have never ever voted before and they are 50 years old in some cases. And the numbers are astronomical. Who would have thought this is happening to the Republican Party . Because a lot of people would say the Republican Party is obsolete. We do have obsolete people in the Republican Party and a lot of leaders that are obsolete. They dont understand whats happening. Not enough to convince Ohio Governor john kasich who campaigned with mitt romney the 2012 nominee today and picked up endorsement for ohio state football coaches and said hes running unlike trump, a positive campaign. Im not going to take the low road to the highest office in the land. I represent you and im going to run a positive campaign. Heres whats at stake tomorrow. Its big jackpots of delegates awarded on a winner take all basis. Florida with 99 and illinois and ohio. Then youve got two other states in missouri and North Carolina and more delegates on a proportional basis. Lots at stake on the democratic side. Its another hard night for Bernie Sanders to make up ground against hillary clinton. He trails her in ohio and in florida and in North Carolina. Hopes to pick up delegates elsewhere while rubio and kasich hope to stay alive. John harwood in washington, thanks very much. Get ready for super tuesday tomorrow. We have breaking news on voe volkswagen right now. This should not come as a surprise given whats happened to our investors in volkswagen that nearly 300 Institutional Investors in germany have filed a 3. 6 billion lawsuit against volkswagen. Obviously because their investment has essentially been hurt substantially due to the emissions scandal not only in germany and europe and also here in the United States and worldwide. These Institutional Investors have filed a 3. 6 billion lawsuit against volkswagen. No comment yet. It said it still needs to see the lawsuit. Expect more. No doubt. Thanks very much. Time for a cnbc news update. Heres whats happening this hour. Oklahoma city Police Say Former chesapeake ceo mcclendon was not wearing a seatbelt when his car slammed into a concrete wall. In the update authorities said mcclendon did not appear to suffer a medical episode before the crash. He was indicted on conspiracy charges a day before that accident. Health officials in cambridge say the number of confirmed mumps cases at Harvard University has risen to 11. Officials are concerned the virus appears to be affecting vaccinated students. Hundreds of migrants stranded in greece are crossing into neighboring macedonia through heavy rain and waded through a river in order to cross the border. And this car really didnt stand a chance against a massive sinkhole which was caused by a water main break overnight. The owner of the car luckily was not hurt. Back to you guys and bill, were awaiting the medical examiners report on mcclendon that may be released as soon as tomorrow. Thanks very much. Kelly, weve got a little less than 30 minutes left in the trading session with the dow now up 45 points. A leading trader will tell us what hes watching into the close. Also ahead is hyper loop the next unicorn, the transport company that wants to connect San Francisco and los angeles at 760 Miles Per Hour. Venture capitalist, hyper loops cofounder will be here to talk about this and also poured money into uber and air bnb, you want to listen as we get more smart money advice on closing bell. Were in the last half hour of trading on a decidedly low volatility day here on wall street. Joining me on the floor of the stock change, gordon charlotte. As you were saying during the break, this is a calm before a storm potentially. Potentially. The miraculous market in front of three Central Bank Announcements coming. Investors are most focused on the bank of japan. Any one of them could provide direction or some idea whats happening. I think one of the things has been interesting, weve seen in this last little bit of a rally that weve had, a lot of buyback activity and a lot of professional money coming in, where the Retail Investors vr coming out. Thedy vergence between the two Investment Groups are sort of historical highs really. You typically have an upward bias ahead of a fed meeting but you also were at a point where weve had a pretty good rally in the last four weeks. I wonder which way were going to go here heading into that meeting. Weve already had our rally here. Some of that is already priced in. The two things outside of that, first off, tomorrow the president ial election, will there be direction there and idea of what were going to be looking forward to in terms of changes and policy. I think also, march is first major expiration and well see activity as we get toward that. Well pick up some steam, maybe a little ledge ar gi but it will pick up. Thats what it is. We lost an hour somewhere. Reminds me that its pi day too, which i always love. 146, thats the number of companies valued about 1 billion or more. How many are left . Top of that list in valuation is uber, 51 billion or so. When will the Ride Sharing Service go public and at what valuation. One of the companys early investors joins me out here on the terrace to provide insight into that question and more. Thank you for joining me. Thachkz for having me. Uber, going public this year . As an investor and former board member i cant comment at all. Go public at 51 value, 200 billion. Did you think it could be a 200 billion company. I predicted facebook would hit 200 billion and it did. That happened within five years. We talked about that last year. And also, predicted uber will cross 200 billion mark at some point within the next five years xbl how long does it have to go public. The engine of growth it has, theres plenty of time they are in no hurry to go public and theres no time line. The scale at which this company is growing, you know, 600 plus cities, theres thousands of other cities to expand into. And i spoke at their employee summit and 5,000 employees there, from all over the world, theres a culture thats been built that by travis and the team that is very unique. And as a reflection of what an Incredible Company they are building. Were going to be talking to lyft later. They are growing quickly too. Is there enough room in the business for uber and all of the competitors that will multiply . Theres plenty of room. We say transportation is the new broadband. That applies to uber and hyper loop and were looking at technologies that can speed up the movement of at oms, not just bits. We can move that faster and make the Global Economy grow faster and faster and in opportunities that arent even reached yet today. You mentioned the hyper loop. Any news to sharon that front today . We were confirming that weve closed on 100 million in funding so far. Hyper loop is now almost 130 employees we call it hype poe tech. Were the only company thats been able to raise that kind of capital. We have rob lloyd, the former president of sisco of the company. And now we broke groun in nevada and hit 400 Miles Per Hour in the propulsion test in may and full scale test by the end of the year. Bill, you could get on the hyper loop and ask in person. I could be in San Francisco in an hour at that rate. Where do you stand on the apple versus fbi debate . This has become one of the fundamental debates of our time right now in the issue of security versus privacy. Is it as black and white as the Technology Industry was to rally behind apple at all times or not . Where are you on that . I think it is a fundamental question for our society and our country. Were living in a time where there are absolute threats to our security. So its a very nuanswered issue. I dont think its as black and white as everyone calls it out to be. We need to protect our citizens right to privacy but at the same time our rights to security. Do you take any additional steps yourself on the security front . In tirmz of my phone or . In terms of your phone i dont know as simple as types of house codes you use or types of servers are feel comfortable storing data on. Does it ever give you pause . I have not taken any extra steps. I think the encryption on the ios is good enough makes me think about snapchat, another company to meant here. Absolutely. Whether or not Law Enforcement tries to go after the companies and they want to get the information and cant because it disappears. But as a platform snapchat seems it could maybe rival a facebook one day. It is rivaling facebook, growing fastest at the same age. Two thirds of the users are creating content every day. What evan has created is pretty incredible. Snapchat is rivaling facebook and potentially could be as big oerve the next five to seven years. Just before we go, what about Virtual Reality . That seems to be something that comes up a lot and seems like it might be a fad or major platform. Its a major thesis for us, technology that is completely changing the way well consume media and transactions. It will be the new browser through which we engage with the digital world. Whats your preferred way to invest in that . Were looking from the earliest stages to midstage companies that we think are doing some interesting things. We think theres an opportunity for a netflix for vr and talking to people in that space as well. Congratulations on the fund raising. Good to see you out here. Thank you so much for your time. Bill . I love talking to some of the smartest minds in technology. Great stuff. 15, 16 minutes left in the trading session. The dow up 46 points as we head towards the close. An experimental can nabis drug that treated children with epilepsy has sent stocks flying higher, big time. In the wake of a weekend of controversy for frontrunner donald trump, marco rubio faces a last stand in his native florida in the primary tomorrow. Coming up well talk to the mayor of Miamidade County how tomorrows primary is shaping up. Stay tuned. Tokyostyle ramen noodles. Freshly made in the japanese tradition, each batch is small. Special. Unique. Every bowl blurring the line between food. And art. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers, and as you strive to meet their digital expectations, theyre enjoying more choice and greater power than ever before. 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They have three more Clinical Trials currently running and based on these results they are starting to have conversations with the fd amount for filing for approval. Look at the share price you see it went down. Show a lot of skepticism. We spoke to the ceo earlier today. This is a momentous event for our company and for this product, which is the most important clinical event in our companys history. It not only reinforces the potential for cbd in the field of epilepsy but the con crept of their potential within modern medicine. Folks are hoping maybe this is the start of more positive news. Back over to you guys. Meg terrell, see you later. For next hour from San Francisco, right now the dow is up 54 points. The bank of japan and our own Federal Reserve have been meeting this week. Up next, chases anthony chan will tell us what the gatherings could mean for the markets and for the economy when we come back on closing bell. Im in vests and as a vested investor in vests, i invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Less than eight minutes to go. Art cashin said we have 650 million to buy to the close. With the dow up 42 points. Joining me is anthony chan, the chief economist at chase. Weve been highlighting the Central Bank Meetings that are going to occur this week. By the end of the week, what do you think we will know that we dont know right now . Right now janet yellen has the benefit of the fact she saw the movie of what happened when the bank of japan went to negative rates she has to be very careful. What she has to do is deliver a message that the u. S. Economy is gradually improving and stay in the sidelines and raise rates in a gingerly fashion. Are we past the point this debate where you see me having about a month ago, whether or not we were in recession, high profile names were saying we seem to be heading towards that. And there are some houses on the street putting a percentage on that number of whether or not were heading towards recession. Where do you stand on that . I wish we were past that but were not. Our model ares saying theres still a 20 to 25 probability of a recession. If you look at the patterns of the s p real net income for the s p, that is basically saying theres been an 18 probability of a recession this year. By next year as much as a 30 probability. Im hoping that doesnt happen but we cannot say that theres a zero probability of a recession, not yet. What does that do to your forecast for Interest Rate increases by the fed this year . Thats a real simple one. What it does, it tells us that four Interest Rate hikes that the Federal Reserve talked about last year is completely off the table. Were talking about not more than one or at most two Interest Rate hikes this year. My guess is that one is probably more likely than two. And this from one a man who had been one of the more bullish economists on wall street, little more tempered thoughts right now. Absolutely. Anthony, good to see you. Anthony chan. Well take a break and come back with the closing countdown and kelly is coming back at the top of the hour with more from San Francisco talking to some of the smartest minds in technology on closing bell stay tuned. 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 2016 eclass. Now receive up to a 3,000 spring bonus on the e350 sport sedan. You ppremium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. 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Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Two and a half minutes left in the trading session. Want to show you whats happening to volkswagen stock, this huge lawsuit filed by Institutional Investors to over 3 billion over the scandal involving the Environmental Concerns about their engines, right . But the stock is down 2. 3 , trading at 28. 5. The lack of volatility for the stock market to start this week off after four positive weeks. We get ready for all of the central bank activity. We opened lower and were finishing higher but it was a trip that was only about a 70point range for the dow today. But what did see volatility was oil with iran coming out and saying they are not ready for a production freeze until they can ramp up to about a 4 million barrel a day production quota. They are at 2 billion now. They are halfway there and figure it will be another couple of months before they are ready to do that. That took the wind out of the sales of the oil market. Wti, well below 40 a barrel at 47. 25. Despite the problem it doesnt with oil it doesnt affect the overall market. We did have drillers and exploratory production but this was not a day where we had a nice last week, oil is down and everything falls apart. Thats a very important change in trend. We also didnt get any market response to word that Vladimir Putin is ordering Russian Troops out of syria as they begin the peace talks in geneva. A lot of people debating what that means. Hes not completely Mission Accomplish or maybe its a tactical thing. I think the important thing is today is the day before the fed, theres a tremendous upside to tomorrow has been an update for most of the time and volume today not a lot of conviction but this may be just passed 3 billion shares on the consolidated take. That may be the lightest full day volume weve seen so far in the year. Doesnt matter, trend still to the upside right now and markets not being bounced around by oil. That is the most important thing ha happened today. Wondered whether there would be a prolonged decoupling. Lets see the starts today. See you later. [ bell ringing ] global emerging Capital Group and thats the first hour of the closing bell. From San Francisco, its hour number two with kelly evans and company. See you tomorrow, kel. Thank you, bill, welcome to closing bell. Im kelly envaz in San Francisco. Were taking a look across all of the major average, digesting with downward moves in the oil price again today. But you can see the impact there. The dow up about 15 points and broad index down, closing in the red today. The nasdaq only gaining one point for its part. Joining us to talk about the market action, mike santoli and guy adami and ben willis will join us shortly. Bring us up to speed. What do you think the market is digesting . You picked a good week to sit this one out. Dry day weatherwise and it was really a Holding Pattern day when it came to the market. The stock market for over a week now is kind of refused all indications that it should have a more significant pullback, maybe a little bit of that happened below the surface but a low volume treading water and really waiting maybe for the fed meeting. We came in with 90 of stocks above the 50day average for first time in almost three years. Clearly the market is overbought but its waiting and seeing if the next catalyst comes along with the fed. What do you think about that, guy . The bond yields have been looking better lately but stocks are kind of all over the map. Bonds look like a big day and gave it back towards the end as the market recovered. The most interesting thing on the day. Mike just sort of talked about it, the fact that oil down 4 off whats been a monster rally. Yet the s p closed unchanged over a 200point move in a month. You should have seen at least a little bit of a selloff given that move in oil and you didnt for the bulls you have to be very encouraged by that. Michael, we talked about how last year it was all about the fang stocks and some ways it was a stealth bear market. This year is that starting to change . They are looking at maybe its time to pick towards the value versus the growth area and we had that conversation with jeff ubben, do you think conditions are getting friendlier for picking the more stay at companies here . I think you have to distinguish between steady, cheap looking companies that maybe have some leverage to the Global Economic cycle, which were the ones most beaten down last year versus the stocks in the value indexes. The stocks are dominated by financials and energy. Maybe, maybe not those indexes come back. But what youre seeing the tapes show, those stocks that were beaten down and neglected, industrials and such last year, have led and you have the majority of stocks up year to date even as the s p remains down about 1 on the year. So definitely youve had that meaner version trade. Question is, do you get anything more than that turnabout bounce . Fair enough. Ben willis is done trading on the floor. Jump in and give us a sense what youre watching play out here. Is it a tug of war between different sectors of the market . Without a doubt. What were seeing right now, some research ive been seeing at etf global the ben factors have been at the discretion of the consumer stocks, we saw that play out in the dow jones with mcdonlds and nike and the like. The disconcerning that we thought was rory some some morning was some of the pressure in the russell which seemed detached because of the heavily wading in the energy sector. We saw some buying interest but the money flow is in the i dont like to say this because i believe in individual stocks but you really have to watch flows in etf and where they are going to get an idea what investors are. Theyve been seeing flow from february back into the commodities which seems to put the bid back in oil. The concern is its been coming out of the stocks so its been coming out of some fl Energy Stocks particularly the smaller ones. We saw the Short Covering but from traders side but not investing side. For the big picture if you will, there seems to be the money flow seem to be now committed to the idea of the consumer, whether its the u. S. Consumer leading the recovery globally and hoping that the rest of the consumers particularly out of china jump on the bandwagon but that needs to be where you watch where money flows for investors. Thats fair enough. I heard people looking a little bit to the political outcomes tomorrow. So i wonder actually, will you explore the president ial race heating up again tomorrows crucial votes, those primaries in florida and ohio. One candidate ee mernling as wall streets preferred option. Steve liesman has that for us now. Hold on a second, i dont want to give it away off the top. The survy usually comes out tomorrow and well have full results but we want to share the president ial polling that we did here on the 42 respondents and Fund Managers and 40 say the best outcome for the economy would be if a republican wins. 18 say if its a democrat. And 42 say they dont know or it doesnt matter. Maybe some consternation with the choices they are given there. Which candidate, has the best economic policies . Well, its a big goose egg for mr. Sanders right there. Rubio, 8 . Cruz would be 11 . Trump 13 . Clinton 16 . And john kasich, the governor for ohio is seen as having the best economic policies by 42 . Same results pretty much on wall street. Big goose egg for Bernie Sanders and rubio and cruz in the middle and trump in third place and clinton in second place and 35 say governor cakasich. I dont think its governor kasichs policies that they are gumming on to but the idea of stability. Im worried a contested convention will be very bad for democrat a sen the economy. And john roberts says the outcome could negativively impact the market as investors never like uncertainty. 56 say the campaign itself has negativesly affected the economy. I think they are looking for a known quantity rather than the wild cards out there right now. Thats fair enough. I wonder what you make of it mike. It was interesting to see the comment, they want certainty at this point. Well, certainly wall street does not seem to want antiestablishment candidates in washington because kasich knows his way around the federal budget, in congress for a long time and brags about executive experience in ohio as well. It seems the steady hand, somebody who wont be surnd with what he found in the job is what they are after opposed to any specific policy proposals that hes campaigning on right now. Guy . I would push back, when is there ever certainty . People dont like uncertainty but frankly the only thing that is certain that well have continued uncertainty. Theres never any real periods of certainty in the market. I understand what some of those comments mean but in practice, you never get what you really want i would push back, that first question in terms of what party would be better for the economy, does that fall under historical norms or is that specific to this election . The last time we asked in a cnbc fed survey was 2012 and it was interesting because it was 5318 romney to obama with fewer undecided or unsure. What happened is the percentage backing the republican of this group came down and they went not to the democrats but over to the dont know unsure. Thats really the story is they are holding their nose and like to see a republican but dont necessarily love the choices that they have right now. What would you say about this . The richest man i used to know, you want to live republican, vote democratic. One of them happened to be under a guy named clinton and there are some of us that believe the candidate running this year had a great effect on that in and of themselves, from a wall street perspective, you have to watch what they do. You cant do that inside the voting booth as opposed to the tradition candidacy. It is the undecided thats worth keeping an eye on. Its not a surprise they went with kasich the fact that big oil and the like is coming out of ohio and has a great interest in the fracking industry and background in washington, successfully navigating washington unlike what we have seen for the last eight years in getting anything done. Seem to have a track record of getting that down. Kelly. Steve . Its worth pointing out, i dont know if people are aware this poll is a badge ever honor or shame. I think bernie loves the zero and put it in his lapel zero percent of wall street support me. Maybe john kasich in the year of antiwall street, im not sure that helps him out. I think its a great point. Thanks for joining us with all of the results. We appreciate that. Be sure to see guy adami at fast money at 5 00. They are talking to the head of semper Capital Management next hour. Breaking news here now on outer wall, whats happening there. A volatile stock, outer wall shares, 9 on 600 shares traded so far. They have said they have retained morgan stainly as a Financial Adviser to help them explore Strategic Alternatives. Outer wall the owner of coinstar and red box movie dvd rental kiosks. That company saying its exploring Strategic Alternatives with the help of morgan stanley. It also says its doubling its quarterly dividends to 60 Cents Per Share from 30. Doubling the dividend and exploring Strategic Options and up 9 on very, very light volume. So far we should also point out year to date down about 6 and over the course of the past year, the stock lost half of its value, kelly. Back over to you. A tough recent run. Thank you. Coming up, much more of my exclusive interview with jeff hi ubben, a longtime owner of valeant, find out if he likes the stock despite the issues and whether mike peerson is the right person to run the company. Lyft taking on uber and other other startups they have their eyes on. We got another one. I have an orcogram for an owen. Thats me. You should hire stacy drew. She wants to change the world with you. She can program jet engines to talk and such. Her biggest weakness is she cares too much. Thank you. My friend really wants a job at ge. Mine too. Im a wise elf from a far off shire. And sanjay patel is who you should hire. Thank you. Seriously though, stacy went to a great school and shes really loyal. You should give her a shot. Sanjays a team player and uh. Woman man yes. A newspaper . Woman its quaint. Man did you read about this latest cyber attack . Woman yeah, i read it on my watch. Man funny. Woman they took out the whole network. Man they had to hand out pens and paper. Woman yeah. Man could it happen to us . Woman no. Were okay. Man we are . Woman yeah, we brought in some new guys. Man what do they know that we dont . Woman that you cant run a country with pens and paper. Its not just security. Its defense. Bae systems. Competition is heating up in the ride share space. How can uber get ahead of game . The companys cofounder, welcome. You made a point of saying to everybody there is an alternative to uber, its lyft and were warm and fuzzy. How much quickly can you grow . Youve been putting up phenomenal numbers but talk about the next phase for this company to get entrenched in every day lives. Recently we hit over a million unique passengers every week. We hit a billion dollar run rate in october of last year and raised a billion dollars. Were moving quite fast. I think the recent partnership with General Motors give us advantages others dont have. Are you doing anything outside the u. S. At this point . Where does that stand . Just in the u. S. Right now. Why is that . I think focus is really important in the United States alone, 2 trillion is spent every year on car ownership. And so theres a massive opportunity as more and more millennials and others switch from car ownership to transportation as a service. They are picking lyft and we want to stay focused on that opportunity. What do you think your edge ultimately is as the space matures . Will you compete on price or service or Something Else . I think service. Price and eta are the two first things that need to be true for a passenger. I need to get a car quickly. And it needs to be at a good price. Once thats true and now you see that across the country where a comparable eta and availability it goes to service and lyft treats People Better than competition. Whether thats drivers or passengers that goes into the car experience and more and more are choosing lyft. You mention how fast youve been growing but its easier when youre smaller. When you look at the numbers in about three years, billion dollar fund raise in january, the absolute numbers themselves, a million unique passengers each week, the numbers themself are very large. Joining us by phone to talk more is abdel alsayed, led the investment in lift that was so well received when people were starting to fay attention to what we were doing here. We thank you for joining us. Could you speak to the prospects you see for lyft here . Well, first of all, when we looked at the Business Model we liked what we saw. We liked the approach that mr. Zimmerman and his colleagues had. The growth message that we look at. I wonder though, does that mean that lyft is coming to saudi arabia . Are you looking to make this a Global Company ultimately . At some point probably but for the time being we want to focus the local focus because the local market itself is huge. And we would like to see this achkt the market before venturing outside. What are some of your nearterm goals . What would you like to see lyft do . Expand into different American Cities then . Is it again, just making sure that the numbers continue to try to equal if not surpass ubers . What are your goals . Well, the geographic expansion but also the service because at the end of the day this is part of the services that others are looking for. The other by the way go ahead, go ahead. The quality is something lyft is emphasizing and we leave that that would be that riders would be valuing more and more going forward. And you guys john have been in touch quite a bit here . Mostly communicate over text and talk a few times every month. How comfortable are you with the Different Things the investors in the Company Might be pushing for . I think people like Kingdom Holdings and others that have great experience in many Different Industries is very helpful for us. We see what were doing not only technology but also transportation. Adel, speaking of other technologies, we talked about your investments in uber and what youre doing with lyft. What do you think can be the next area you put money to work . We were looking at still looking at some technologies and were looking at more Artificial Intelligence arena. We also hear so much about Virtual Reality. Go ahead, yeah. I mean, nothing finalized yet but we have sectors, if you will. And john, when we talk about already uber has sup planted a lot of taxis and rental cars for people when they are traveling. Does it ultimately supplant car ownership . In the United States its about 2 trillion spent every year and the car is utilized only 4 of the time which makes no sense. And in a market like San Francisco, lyft has 40 of the market. When you look at our competitor in three years weve made up a lot of ground. And well continue doing so. Im sure being well capitalized doesnt hurt in that. Thats right. Thank you so much for being here. Adel, thank you so much for calling in as well. Great to hear from both of you very much. Up next, close and hands on look at the future of Virtual Reality. Xrxt eo of leap motion will talk about Game Changing software that will eliminate the need of a controller. Marco rubio may be forced to throw in the towel if he loses the primary. [beekeeper] from bees to business expenses, im in charge of it all. So ive been snapping photos of my receipts and keeping track of them in quickbooks. Now im on top of my expenses, and my bees. Best 68,000 employees ever. Thats how we own it. Time for a news update. A u. S. Born man is being detained in northern iraq. Images pried to news outlets show purportedly an american whom they say is a member of isis and includes images of virginia drivers license. It is unclear if the fighter was captured or had surrendered. According to reuters, u. S. Officials were given no advance warning that they were pulling troops out of syria. That came from a statement from Vladimir Putin who said the withdrawal would begin tomorrow. Investigators are looking into a damaged piece of track caused an overnight Train Derailment in kansas. It was going 75 when the engineer saw a bend in the rail and pulled the emergency break. At least 32 passengers were hurt in that accident. Theres a new menu item hit he can chickfila, frozen coffee. It starts at 240 calories. I think the key word, starts at 240 calories. What are the options that would get it higher than 240 . . Much bigger cup, a much bigger cup. We were looking at the smaller version of that, trust me. None of the other chickfila stories got me tempted. Might take a gander at that. Let me know. Lets get back to kelly evans in San Francisco. Thank you so much. Now, normally everybody when using Virtual Reality technology its required that the user holds controllers to perform any sort of actions but leap motion is already shaking up the Virtual Reality industry and thats by introducing its orion project to allow a user to see hand movements and that eliminates the use of controllers. With us now in todays edition of the spark our two cofounders p leap motion, michael buck wald and david holts. Thanks for joining me. Ive tried Virtual Reality once before and did have to use a controller. Id love to try yours and see how it works. I think youll find that u be able to see your hands in vr and Touch Everything exactly like you touch the real world, that it just changes the experience in a really important way. Do i put the head set on . Okay. This thing with the band . Okay. Theres so much wires all right. Soon there wont be any wires, just a head set you can put on and be in a space and be human. Do you feel good . This feels pretty good. So put one hand up in front of your face i see a block. Put one hand up, try wiggling your fingers and two hands now. Can everybody see what i see . The blue hand and green hand. Now put one hand down and see theres a block below you. Try pushing it a little bit. There you go you can hit it away two. Isnt that cool. Lets give you a stack of blocks really fast. Try pushing the stack over. There you go. I need to actually touch it. I wasnt trying to touch you can almost feel it even though its not there. Isnt that cool . Wow. Do you want to try to make it do a trick. This is a trick. Yeah. Were going to let you try to create a block. So take put your right hand up and left hand up and pinch with one hand and other hand and bring the two hands together and now bring them back apart and let go with your fingers, you just made a block out of thin air. Nothing like that. Thats pretty cool, huh . Ooh. There you go. Whoa. Now im going to turn the gravity off for a second. Try pushing one of the blocks. As if were in space push gently. Get out of here get out of there. Now well turn the gravity back on for you there. I keep creating new blocks try making a little tower. If you reach out with one hand you can grab a block like you would just act like its a regular object. I see. Wait. Oops. Thats really the power of this as an interface im multiplying blocks. Dont have to learn how to use a controller, everyone knows how to use their hands. I thought i did, now im not so sure. Well turn off the block making for a second. Just try grabbing with one hand, try grabbing one of the blocks. Wow. Isnt that cool . Guys, wow. Thats amazing. And is the idea for this to be mostly gaming for right now and then other kinds of applications or what do you think . A lot of it is making Virtual Reality like actual reality. Weve grown up our entire lives with the universal human entier face and we have the ability to take a lot of what today is very abstract and make it concrete. Getting enough capital for all of this . So were working with a lot of leading oems in the space to Better Technology and actual devices and it seems like every company these days is making a vr shed set. When i took off the last one, my hands seem so big fascinating stuff. Good luck, thank you so much for the demo. Michael buckwald and david holt z, as i continue to get my bearings. Check out much more on the spark. Mike pearson the right ceo to get valeant through its troubles. Jeffrey ubben will weigh in on the companys future next. When will you be able to take a ride on the ultrafast hyper look, the coo tells us when it could finally become a reality later on the closing bell. He has a sharp wit. A winning smile. And no chance of getting an athletic scholarship. And that is why you invest. The best returns arent just measured in dollars. Td ameritrade. We need to be ready for my names Scott Strenfel and r im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. Welcome back. Pretty much hugged a flatline for most of the day. The dow did nose ahead. S p at 2019, almost exactly 1 below where it ended in 2015. Not yet traded positive on interday basis just yet. Nasdaq was the loser but finished just about perfectly flat. Lets get back over to kelly out in San Francisco for us. Mike, thank you so much. Valeant pharmaceuticals taking overhead lines with the stock down more than 65 over the last year. In a rare interview valeant investor jeff ubben told me what he thinks of michael peersons role at valeants helm. Heres what he had to say. You know, its a weird two years. The allergan ambush, acquired a lot of enemies for show and then you know, we were really unprepared for the bear raid for these political wins that kind of hit us in the face, really unprepared for that. You must have been unprepared for those revelations too . Especially pharmacy businesses being employed by many Drug Companies and there is a there is a tension that we should all want between affordability and accessibility, right . If you have a determine tolg drug that works for you, your doctor should be able to prescribe it to you versus having a pbm push you to a generic that may not work as well and their Business Model pays them to do so. So, i think you want tension in the system and thats what the specialcy pharmacy business, thats their role. Whether its well done or not, is you know, is another question. We, you know, were looking into that. Do you think Michael Pearson is still the right guy for the job . Mike mike its really unfortunate in the middle of the most critical period as were changing this Business Model more towards consumer pay with walgreens that mike gets sick. And so he is incredibly incredibly driven, incredibly smart. Hes a great Problem Solver and were solving problems as we speak as the model changes and shifts. And hes about you know, 80 back. He really was sick. And hes finding his energy as we speak. Its surprising how quickly hes attached and having come back and really being as determined as you can be and have shareholders to solve his problems. We think mike is the right guy for the job now. Whats your targtd now with the investment . The Business Model does seem it has to fundamental change. The idea they would be light on research and development, acquire drugs and raise prices to what they deem is competitive in the market, under fire as you mentioned, politically and also because theres competition out there for the successful existing drugs, company has a high debt load. Obviously now and host of doubters about its future prospects. Does that make it more appealing to you as a Value Investor or give you pause about how long you can remain in the stock . We bought really good assets. Theres real growth to these assets. And we really had a capital structure that is quite low cost. We have a tax rate by merging with bio veil thats low cost. And we have a tremendously diversified revenue base. Weve got emerging market businesses and ophthalmology and dermatologist and neurology and gi. Do you think it will be i think you can earn your way into that. Yeah, the we havent been able to control the narrative, short sellers in the media dying for a new crisis. Darn media. Kind of filling the space. As we do here, we just put our head down and try to make sure the company is better when we leave it than this was when we got there. You mentioned you might make one or two Real Investment decisions a year. How close are you to resetting the portfolio today . It was game on three weeks ago and were ready, always doing work on companies. We have about 600 companies we follow globally. And we bought 100 million bucks of one that were excited about. Want to tell us i cant. I want to bet more. We went all over the country visiting their operations and we know management some and it went right up to 25 in our face. So you know, its frustrating. We are carrying almost 3 billion in cash, which is a lot for us. But it sounds like what youre saying, your fund may or may not get that much larger but the targets could because there could be better targets at the birg companies aalluded to. Yeah, i mean, its up for debate whether the market is much less efficient at big cap than small cap. Adobe was super cheap at 25 bucks because i think they were long they were long sales force and short adobe and rolls royce was cheap and microsoft was cheap. So the long short world is big enough and looking for their hedge that so far weve been able to find bigger cheap high quality businesses to work with. And you can catch the entire interview with Jeffrey Ubben on cnbc pro. What he thinks about american express, a company he just got out of e. As you may recall, in and out of that one last year. He elaborated a little more on that. Really interesting discussion points on valeant especially when he said he thought they could earn their way back to 200 bucks a share. That was striking, not just the vote of confidence that they have the right ceo and great assets but the suggestion that this company was and shareholders was somehow blind sided by political and media and market storms. Honestly, you could make the argument that 4 holder of the company has stuck around and really feels like fundamental story is intact. On other hand you can feel like maybe they are feeling trapped at these price levels. Right, again for a firm that only holds about a dozen or so names and theyve been involved in this one for about a decade now. So again, well see when we start to get those earnings and everything whether that can turn the narrative around. But at this point its a tough road. Again, that interview with Jeffrey Ubben is available on cnbc pro. 99, thats how many delegates are up for grabs. Tomorrows winners take off for florida primary. Well speak with the mayor of miamidade about whether the senator has a fighting chance to win his home state. In just four years passengers and cargo could be traveling at the speed of sound if hyper Loop Technology has anything to say about it. Well talk to the chief operating officer about transforming transportation. You are watching cnbc, first in business worldwide. Tomorrow maybe the gops last chance to stop the unstoppable frontrunner donald trum. Primaries in ohio and florida are winner take all. The fate of marco rubio does hang in the balance. Joining us now, carlos jim nez and marco rubio supporter and mayor. The polls dont look good for marco rubio here. What are you going to do actually, first of all, why dont you think more floridians are behind him . The polls say one thing and well see what happens tomorrow at the actual polls when the votes come out. Marco rubio is our senator and represented us very well and has a clear vision for what America Needs to be and where it needs to go. I think at the end of the day the people of florida will come out and vote for him. And so im very happy and proud to endorse him. Hes one of our hometown heroes here in miami, lives has lived down here for a long time and also hes a cubanamerican like i am. Im very proud to support him. I think the rest of the florida will support him as well like they did when they ee leked him senator six years ago. I guess the flip side of the question, why is Donald Trumps appeal stronger . Do you understand what it is he represents or is speaking to in terms ever leading marco in some polls by 20 points . He could take all of the delegates come tomorrow and if so, you know, it says a lot about just how strongly people do feel about his candidacy. Mr. Trump is a strong candidate. Hes won a lot of different states around the country. And so again, its going to come out with the votes, when you tally up votes and see who is the leader here but again, i believe marco rubio is the individual best suited to lead America Forward and i would hope that my fellow floridians and especially my fellow Miamidade Countyyans will come out and vote for marco rubio. He is by far the best candidate for president of the United States. Thats why i support him. And the vast majority of my constituents also support him. He has a clear vision of what its going to take to lead America Forward and have a better quality of life for our residents behind me theres a tower, a signature building and 3 billion investment that we have here in Miamidade County. Theres a renaissance happening in miamidade that hes been part of. Its about creating jobs, that project will create thousands of jobs for inner city people and our residents here that are looking for those kinds of jobs that will help to solidify the middle class in Miamidade County. That is same bol of whats happening here at miamidade. But also what the senator can do for the rest of the country. I have to say, ive been impressed so many have, remembering how badly florida was hurt by the real estate crash to see how strong the comeback has been. We hope that continues no matter kind of what happens with the primary tomorrow. Mayor jimenez, thank you for joining me. Thank you very much. Appreciate it. Miamidade florida mayor there on the eve of their big primary. The much hyped high speed hyperloop is becoming a reality. Well talk to the chief operating officer of transportation technologies. Closing bell is back in two. Y and flexibility. With centurylink you get advanced technology solutions. Including cloud and hosting services all from a trusted it partner. Centurylink. Your link to whats next. With extraordinary offersmance saon the visionary ls, the generously appointed es and the new, eightpassenger lx. This is the pursuit of perfection. 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. Welcome back. From dream to reality, the hyperloop, the vacuum tube transport company that wants to connect San Francisco and los angeles at 760 miles an hour could happen in as little as four years. How realistic are these plans . Hyperloop Transportation Technology c. O. O. And deputy chairman joins me out here today. Good to see you. Thank you, kelly. Im learning a lot about the hyperloop being out here. Turns out theres kind of a gold rush going on to sort of plant a flag and say, you know, we are the hyperloop. Earlier we heard that that another group hypertech has raised 100 million in funding. Seems to be off to the races. What about you guys . Well, first, okay, we are the first one that took the elon musk project in 2013 and transformed it into something real. We started to have a Feasibility Study two years ago, and then we studied our tests and now we announced the start of the construction of the fullscale prototype north of los angeles, so were the only company that actually are building a real fullscale hyperloop. Thats not what we just heard that they are doing a hyperloop. That its already a test. A test thats out in nevada. Sounds pretty real to me. Yeah, but, you know, theres several phases on implementing it like this. You have to test the chronology and then implement in a full scale to understand all the aspects of it. They are doing it in nevada and getting it up to 400 miles an hour. Good, and we like competition. I think they have chosen a different name because, you know r kno know,. They are hyper technologies. Were very happy to create an industry together and means that the concept is valid. Why should i invest a dollar with you rather than the guys who have a proven test track facility in. We have a test track facility but we have started to build the real hyperloop. The difference is, our model there are two ways to build companies right now. Theres an old model where you raise a bunch of money and then you have to spend it as fast as you can to demonstrate to your investors that youre doing something, and theres a new model. The model that we build our company. We have 520 scientists involved. Wow. From 42 countries, and they are the best minds in this planet from nasa, tesla, spacex, boeing and all big companies, stocklisted, joined our team to make this hyperloop come true, and the result was that we are actually building the first fullscale hyperloop. Five miles of prototype inside the motor city of the 21st century. Could there be two competing hyperloops between San Francisco and los angeles . Were actually the one positions between San Francisco and los angeles. They are building a test track in nevada. Right, right. Outside las vegas. We are the only company that actually signed a deal with a sovereign nation in slovakia. Yeah. So we announced last week we met the government official. In that country the world bank declared that they are that they are the most stable country in the c. E. . They are also leading the innovation in europe out. Listen, if i can get anywhere in the world at 800 miles an hour im interested. Good luck with it all. Thank you for joining me. Weve got a news alert we have to get here on an uber driver in michigan who went on a shooting rampage. Sue herera joins us. What happened, sue . Reporter an Associated Press report citing a Police Report which says that the man, jason dalton, charged with killing six people and wounding two others in southwestern michigan told investigators that he felt he was being controlled by an uber app through his cell phone. He said he doesnt know how to describe that, but he said it feels like its coming from the phone itself and he does not know how to describe that. Thats a quote cited in this report. He is charged with murder and attempted murder in the kalamazoo shootings. They occurred on february 20th outside of an apartment complex, a restaurant and car lot. Two people did survive, that and he carried out the shootings in between driving for uber, according to this report. Kelly, back to you. Sue, so just to be clear. Did he say that his phone was telling him to do this, or did he say specifically the uber app was . He said according to this report that he felt he was being controlled by an uber app through his cell phone, so im sure that theres some sort of clarification that we could get through that, but thats whats being quoted in this particular report, kelly. All right. Sue, thank you very much. Reporter sure. Our sue herera back at cnbc global headquarters. Well bring you the key factors to watch in the market this week when we come right back. Stay with us. Its a drone you control with your brain, which controls your thumbs, which control this joystick. No, im actually over at the ge booth. Were creating the operating system for industry. Its called predix. Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. Hi. Im pamela yellen. You may have read my bestselling book the bank on yourself revolution. Over the last 25 years, ive researched more than 450 financial products. I found that one of the bestkept secrets to help you plan for your retirement is the home equity conversion mortgage. Its a line of credit for homeowners age 62 or older. 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While this product is good if you need financial help now, its even better if you want to strengthen your Retirement Plan for later. It offers a wide range of flexibility for every homeowner age 62 or older. I believe this is a Smart Financial tool and i recommend that every homeowner who qualifies consider getting one now. Call one reverse mortgage right now to get the details, find out if you qualify and get your free information kit. Show h welcome back, everybody. Mike, i havent gotten of enough of a chance to pick your brain this hour, so lets do some picking. What are you watching this week in. Yeah, it has been lonely on the desk here, kelly. You know what. We actually have data coming up in a couple of days before we hear from the fed. We get the cpi report on wednesday morning and thats basically when the fed is going to be convening to figure out what they are going to say. Not what they are going to do but what they are going to say about their policy leanings. I do think it could have stakes for the market here. Today was just kind of a churn Holding Pattern day, but we are going to have to fine tune, i think, what the expectations are for what the fed has in mind. Yeah, exactly. Its like the endless loop. Its like the hyperloop of Central Banks lately from the European Central bank, bank of japan. Only it doesnt move as fast. Yeah. To the fed. Good stuff, mike. By the way, everybody. Closing bell San Francisco road show also continued tomorrow. Good a good lineup. Going to be joined by dan niles, ken draper, Gavin Newsome and rick weltz of the Golden State Warriors and San Francisco giants owner larry behr just to name a few. Going to go get some rest. Dont miss it, everybody. Mike, thank you again. That does it for us here on closing bell. Fast money begins right now. Fast money does start right now. Lieu of from the nas dance market site overlooking a rainy new york citys times square im melissa lee. Traders are peter najarian, brian kelly, karen firn men and guy adami. If youve been sitting out the rally weve got three stocks to get you back in the name. Well give you the name and crude and stocks did something very unusual and it could be the quote, key to economic nivena and the techerass ei on the new smartphone. We head into the biggest week of stocks with the bank of japan meeting and the fed on deck. If youre nervous about the markets where do you put your money to work right now . Are there