Transcripts For CNBC Closing Bell 20160420

One of the key issues this election season. Weve got a debate on whether strong jobs data has been you 00 hiding economic weaknesses. After the bell, a read with American Express, united continental, qualcomm and more. Just to name a few. We begin with oil hitting a 26year high as the president meets in saudi arabia. Just under 43 a barrel today. Significant. Its not as low as we were earlier in the year. 26. Its still not at the 60, 70, 80 that people are talking about. Oil prices are still low. Theyre going to stay lower for a while. And that is causing problems for saudi arabia. And the problems, the kingdom had to slash its budget. We know that. Its also coping with a shrinking gdp. It quietly sold some bonds for cash this year. And downgrading the sovereign and downgrading seven of its banks. While theres also been a struggle to keep cash reserves at a certain level so the Saudi Arabians can keep their currency to a dollar. The ipo looks like its going to have a speedier time line. People are talking about early 2017 for the ipo. And the market is taking that as a signal that the Saudi Arabians need cash because of low oil prices. The stake is a Game Changing move. The saudis are a nation that have proudly kept control of their oil. And also theyre not particularly transparent, guys. While a sale wouldnt include saudis oil reserves it still makes a statement to investors that cash is king in this environment. All of this coming after the doha meeting where no production needs were achieveded. Initially, short term, were probably going to bounce around this 40 range. The bottom line, even if the saudis have an ace up their sleeve and they can hold out and endure as they have told the market, or its hurting them and that is why theyre coming to the market. These are things to consider as the president is coming to the region. Thank you, jackie. Steven short. You heard about that the saudis not being one of power and leverage. How should we read with the president over there, all of these machinations and its impact on price . Well, certainly, we have to take into consideration its not price alone driving the saudis decision to walk away from doha. And we have to keep in mind this is as much do with geo politics and theology as with price. Were looking at the greatest chasm between the sunni side of opec and the shia side of opec. With regard to rumors that iraq is hosting a meeting next month there is no way the saudis are going to throw the oil bulls a live preserver. Theres no way the saudis cannot afford to underwrite in the global market. This is the hegemony of fighting for market share going to asia. This is a war on many different fronts, hence, why we cannot expect saudi to increase production anytime soon. It might not increase production, steven. But what youre saying basically theyre willing to give up price, to freeze out potential and other members to take the market share. Doesnt that go to the Lower Oil Price Going Forward or is there impact not as large . Im certain weve not seen the bottom of oil yet. Were in the midst of a rally. The rally is being fueled by a short yield in this market. For every one bearish specula speculators have purchased nine. As you look forward, iran, iraq, everyone is going to continue to produce or go to the main glut on the global market. Now, here in the United States, we are on track, by the end of this year, production here in the u. S. Will be below 8. 4 Million Barrels a day. Thats 1. 2 lower than where we were a year ago. Keep in mind, were still looking at a global market. U. S. Imports are up 30 . Who has filled that chasm . Our friends to the north. This is good news for the canadians. Were not going to be dry of oil anywhere in the future. Certainly not this year and 2017. Yes, i do like Lower Oil Prices for a longer amount of time. Steven, thank you for joining us. Oil price is 26season high. Bill cohen will talk to us about u. S u. S. saudi relations. Cocacola shares falling for a straight quarter. Its viewed as a stable dividend because of the 3 plus yield. You know, yes, there are some stirrings that maybe were seeing a little bit of a turn in this very hot dividend trade. If you look at the etf, its been one of the best performing strategies really of any out there. Its understandable, buy yield, sell low, this is basically a world that is scarce of yield. You look at reliable. Luke at the big blue chip stocks like cocacola or other staple stocks and really anything perceived as a stable business. And people flock into it. It say little bit of a reminder that you cannot guarantee or insulate yourself from volatility just by owning a highdividend stock. Cj technology, the disk drive Memory Company had a 20 yield. Now the yield so far 9 . A little more tame and relevant example. General mills is down 5 . A 3 yield. A downgrade of hersheys. Another stock around a 3 yield. And youre basically, if you care about the trading price youre giving up a years worth of yield with one days move. So, thats really all you have to keep in mind. If youre happy to collect a dividend, thats fine. Be aware of expensive blue rich chips. Kelloggs, mcdonalds, theyre trading at 25 earnings. Its a little rich. Be aware that youre going have bumps along the way. And old tech is an interesting example. Its not perceived the same way in terms of safety. Intel, ibm and cisco have all yielded. Thats interesting, people say, i thought i was getting a 3 yield. We have todd morgan from bel aire investment advisers. Rick santelli joins us out of chicago over at the cme. Welcome, everybody. Todd, first to you, for a lot of people counting on this safe part of the market dividend players. What are you recommending here. Well, i think the dividends have been terrific, giving people a handsome return so far this year. Theres rotation now going into financials and going into energy because of the surprise move in energy. Ive got an old saying that the market will do whatever it can do prove people wrong. In january and february the markets went straight down. Subsequently, the markets are going straight up in the face of this. I think part of the reason is theres so much cash on the sidelines. Many of my contemporaries, Money Managers have sent an enormous amount of cashing and theyre waiting for the market to correct. Obviously, every buy becomes more and more difficult to achieve that. One thing that worries me if i may add this, theres a possibility always in june that the feds do tighten. If they do, i think the market will give you some sort of sharp correction over that period of time. And the other thing which bothers me which were not talking about much is this election. And i think the fear and uncertainty of what happens next, after we nominate the two people to run for president , when those debates get started, i think that there will be some unpresident ial comments and will bring uncertainty and fear to a number of people. And people will step back and wonder whats going to happen to this country. Unpresident ial comments. I think we might be used to those. In the more near term, you have this market grinding its way higher again today really. You had the vix down under 13. Threatening 12 which is really as quiet as it had gotten last summer. Where are we here in this move . Really incredible. Weve been trading very technically, not fundamentally at all. Direction has been chosen by that handcuffed central bank by those high cash levels. Weve seen i think 15 billion come out of the Hedge Fund Market in the First Quarter alone. And by high short interests. The high of the s p is what, 2130 . I think theres a bunch of bus sta stops to 2130. I see no reason we dont see 2150. Rick santelli, we have meetings coming up next week. The bank of japan. The federal reserve. We talked about eric rosengrin saying markets are expecting us to do more. You no what, i do think the meetings coming up is like turning the flame up on your water when youre trying to boil more water. Its definitely going to turn up the ken nettic energy. This is my hypotheses. The market is outrunning the fundamentals. Lets look at what we have left. The grinding in stocks is super bowlish. I think that we are really in a perfect spot for stocks. And i dont necessarily look at these charts and think that i can make a good case fundamentally, but i can make a good case technically, as steve pointed out. Listen, were only up six basis points. Were at 186. Havent closed with a 180 handled. 2, 5, 10s, dollar index is weak. Multinationals love that. It doesnt end there. Look at a corn chart. Look at a cob chart. Everything is starts to move. If it wasnt all the history, important to me regarding Central Banks, id look at these and say buckle up we can be at the s p by tomorrow. Heck, we could be there at the close. Were that close. Some of the investors are underestimating how fast this could happen. You know, rick, i wonder if that means, if you say you werent so wondering of what the Central Banks are up to that we are rallying in that mode that we think the feds got to move quicker . Boy, ill tell you, now, mike, that is such an important concept because the selffulfilling nature of the fed being nervous about the markets. The markets writing themselves is that going to bring the fed back. I dont know, i think well play that game a lot. I think the fed is f. A. I think they normalize. You look to at 13 basis points, the fact that our yields today alone seven basis points. The u. S. Markets leading the charge. Im telling you, this looks serious on the charts. Its not one market, its all markets. Hold on, stocks are going to explode here. Quick last word. Speaking of that picture, you saw it in the last week. Economy is 3 and 14 on those Economic Data points. As for eric, you know he was trying to talk up the dollar. Well the dollar index is moving high. Yesterday was a different story. Below 94. We try to keep it around 95. Thanks for joining us, todd, sarge, rick, watching the markets with 45 minutes to go across some levels. Not even just in, some of the names you referenced earlier. Markets gotten no cheaper with this correction in the last six months or so. American express well hear from, as well as qualcomm and united continental. Up next, dish network sounding off with nickelodeon and their carriage deal expires tonight. Youre watching cnbc. First in business worldwide. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. Welcome back. Another day and another decent rally here on wall street. The dow bringing its closing point to 1823. S p up 26 points. And keeping an eye on the nasdaq for you as well here. Its actually up about 20 points. 0. 4. The dow is the outperformer. Heres the key map. Dow 30 stocks. United health up better than 3 there. Of course, we heard from the company on its earnings. Investors promising to laud its changes by 2017. American express, Goldman Sachs also. Meantime, dish Network Subscribers may use viacom cable like mtv and nickelodeon tonight. We have the latest on the Conference Call. Julia, what have we learned . Well, theres lastminute negotiations under way to make sure that dishs 14 million customers dont see viacoms channels go black at midnight. Viacom shares turned around and gained nearly 5 at their peak. Theyre now up about 2 . The ceo saying he does see a path towards a deal, raising some hopes that theyd avoid a blackout. Urgen made a point of stressing they not overpay for condent. In general, black hawk is not alone in this. And general content is more widely available. And therefore, the value to us and to our customers is generally down. Viacom responding with the statement over the past 24 hours hundreds of thousands of concerned subscribers have reached out to impour dish to negotiate terms. And we hope we can reach a deal. Well keep you posted ahead of the deadline at midnight. Guys. Julia, viacom stock up about 2 recently. It seems as if the market is trying to sniff out the idea that maybe it wont be so dire for viacom which people have feared a while back. Just yesterday, viacoms shares were down 8 . Things turned around during the comments from Charlie Ergen during a Conference Call. He said they hope they reach a deal and hope not to have the channels go dark. I think that speaks to a greater issue. Whats going on right now in the media business. Both sides are feeling pressure from cordcutting. And distributors. Content is so widely available that distributors just dont want to overpay. Julia, we know Smaller Networks have dropped viacom. Its interesting is it worth for viacom to stay available everywhere or hold the line Going Forward . Some of the smaller carriers did drop viacom which is worth noting. But dish, 14 million subscribers, this is not a small player. There is this issue of whether if viacom accepts lower prices they might have to lower their fees from other carriers which would be terrible from viacom. Viacom has to be careful even if they dont raise prices they dont accept lower prices which of course is what dish is pushing for alluding to in those comments. Right. Its fascinating a lot of people feel viacom one of the big guys are more vulnerable because of ratings. Just worth pointing out those ratings have put viacom in perhaps the worst position of all the cable chances. Julia, thank yous. We have about 40 minutes to go before the closing bell. The quiet rally continues to grind on. Never short a dull market. Thats what they say. Get ready, we have a boat load of earnings after the bell. Well go to what analysts are expecting. Up next, donald trump and Hillary Clinton close to home state victories in yesterdays new york primaries. Now what . Well look at the road ahead next. Month here. You should have quit while you were ahead. 32 years at this place and ive got 9 days left before retirement. Look jim, weve been planning for this for a long time. And well keep evolving things. So dont worry. Knowing whats on your mind and acting accordingly. Multiplied by 13,000 financial advisors. Its a big deal. And its how edward jones makes sense of investing. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Welcome back. Stocks still in rally mode. The dow 93. Off t just about 200 points. The nasdaq tagging along there, too. 40 points or so below that 5,000 market. Also looking at Intuitive Surgical alltime high. A better than expected earnings. Its been quite a ride for this stock. It first approached the 600 a share level four years ago. It was down to the 400s late last year and its been coming back. Also increasing its outlook for procedure growth this year. Lets check out other movers. Discover financial, the Credit Card Company shares better than 8 today. The shares of hersheys are heading the other way. Bank of america, Merrill Lynch downgrading the stock from buy, the firm citing valuations and improvements in hersheys cost structure in china, those shares down 2. 5 . Over to politics, republican candidate donald trump and Hillary Clinton sweeping the state. Twin blowouts. A little bigger on the republican side, trump, 61, john kasich, 25 . And ted cruz just 15 for republicans voting yesterday. On the democratic side, Hillary Clinton 58 with Bernie Sanders 48 . This means that donald trump will neat 57 of remaining delegatings to get to that number. Ted cruz would need 98 of remaining delegates to get there. That is needless to say, a tall order. Hillary clinton needs 29 of remaining delegates. Bernie sanders needs 71 of those still outstanding. A tall order for Bernie Sanders but not nearly as tall as the one ted cruz facing. Cruz already talking about the possibility of a contested convention for the republicans and well see how that plays out and what decisions lowertiered candidates make. Amon, real quick, whats the next state here . A group of states on tuesday, the big one is pennsylvania. Also, maryland, connecticut and one or two others voting on tuesday. Thats a big piece of the pie still out there. That campaigning already under way. Amon jabbers, thank you. Lets go to sue herera. Heres whats happening this hour. The death toll from ecuadors earthquake continues to rise. 553 people were killed. Another 4,000 were injured. And about 100 remain missing. Soldiers and volunteers have been distributing food and water to survivors. A District Court judge authorizing criminal charges against three men in the flint water crisis. Flint utilities administrator Michael Glasgow was charged with tampering with evidence and others charged with misconduct and conspiracy to tamper with evidence. A new warning for parents to anchor freestanding chests and dressers after a third child was crushed to death by a toppling ikea unit. Ikea has sent out 300,000 anchoring kits to consumers but now plans to expand it. Prince william rejecting comments that he doesnt work hard enough saying hes balancing duties as a father, and airline pilot. He said when the queen is to hand over tanks, hell be the first to accept them. I mean what do they want from him, i feel like having his hair in place or a nice suit day after day. Theyre under a microscope. Of course, theres all the travel. They did just did the first royal tour of india. They travel all over the world as ambassadors to the queen and thats not easy either. It must show the ambivalence of the country about having a royal family. You actually want to have royalty but then to say you dont work hard enough. Yeah, right, but even want it. That is the question. Although his popularity, that part of the royal family is the most popular its been in years. Thats true. So its a very divided its kind of like the president ial race a little bit. I just know i would not want to be kate middleton. No shes beautiful. But thats a really high bar. Stressful. Anyways, sue, thanks a lot. Our sue herera. 30 minutes to go here. Markets continue to drift higher. As you mentioned, mike, that vix drifts. And the nasdaq up 19. A leading trader will tell us what hes launching into the close next. The market look goods. What about the economy. Well have a throwdown on that. Our own larry kudlow and chief economists debate. Well debate whether the country is worse off than people think. Less than a half hour to go. Another quiet rally. Allen valdez of silver bear capital. Allen, whats behind it in investor activity . I think whats running the market is oil. Oils got that nice pop. It gets the market up. Youre right, its been broad basis, everything from home demow, mcdonalds, g. E. Youre right, the volume normally were doing 8. 8 billion a month. Were trending 6. 6 billion for the year. Its been quiet. The actual volatility of the market has been very calm. Then you have the vix indicated that people dont expect volume to pick up anytime soon. Is that a warning sign or does that mean were go to be quiet . I think well be quiet. The market keeps trailing up 2575 in the s p. The earnings with negative talk have been pretty good so far. They been been that bad. 19,275. Thats a new high. Do you actually think youll have more public investors kind of celebrate that and get involved . I think theyre going to get involved as long as oil keeps coming up. Theyre going to get involved more confident with the market. Theyre missing a lot of upside here. Alan valdez, appreciate it. Job numbers have been strong for a while. Could those be masking a weaker economy. Larry kudlow. Guys, welcome to you. Larry, in a way weve been having a debate. Do you think the chasm between the numbers and the weakness in the economy is growing and becoming more troublesome . Kelly, i dont think so. I mean, First Quarter we know is statisticall statistically weak. We had a bad number back in 2011. Another one in 2014 where they were both negative. And yet the jobs numbers were growing throughout that whole period. And they pointed to continued growth in the economy. I still think initial claims is one of the best leading indicators. Its been below 300,000 for 59 straight weeks. Thats amazing. We have a strong job market. Theres no sign that its going to quick. Larry, whats not to like about that picture . Well, look, brian say great friend and he and i are usually together on optimism. Almost all of the indicators are declining. Retail sales, manufacturing, production, business investment, all of that looks lousy. I think actually theres a 30 chance of recession. It may be rising. Real gdp is going in the wrong direction. It was in q3, it was 1. 4 in q4. According to the atlanta fed it may be zero in the First Quarter of the year. What troubles me, profits and Profit Margins are declining. Its now been about four straight quarters. I think theres more in store. We can go into details later. Finally, in the financial markets, real Interest Rates are at rock bottom. The real fiveyear treasury is minus 33 basis point. Look you got a picture of a very stagnant economy. Some would call it a growth segment. Wed be luck to stay out of recession, thats the way i see it. You know, larry, all i can tell you, weve gone through these, the last 6 1 2 years i dont know how many times this has happened three or four different times where the data turned soft and it was just a head fake. It came back. I think this past year, you can really point to something, though, thats caused some of these softer numbers. And that is we hit the wall with drilling activity. That means, it affected pipes and pumps and railcars and new railway lines. It stretched all across the economy. And that affected us. But housing is still strong. Auto set a record last year. Yeah, sure, they were soft in the last month. But theyve been very strong. Consumer incomes are rising. Still over 4. 5 when you add them all together. Thats a lot of spending power. Every time we had a weak quarter in the First Quarter, we bounced back later. I still expect this to happen. Oil prices are back up. That means drilling is going to pick up real soon. I doubt if drilling is going to pick up real soon. Putting that judgment aside. I think incomes are slowly rising. Profits, nonconsistent. Business sales are falling. Thats not good. Youre right, housing is positive but its not positive by very much. I think the best optimistic case is the jobs numbers but i want to go back to look, profits are the mothers milk of stocks. Theyre also the life blood of the economy. Yeah. And what were seeing now, a couple years profits flattened out now theyre sloping down. As i say, youre going to have four straight quarters. With productivity flat and wages rising even slowly. Business sales flat. And i dont see where the profits or Profit Margins come from. And thats probably the most troubling event that i see. Im not calling for a recession. But im saying the risk threat here, probably 30 , maybe a little more. And again if youre growing at less than 2 , brian. Any little thing could topple the economy. Thats why i dont feel very confident about it. Yeah, just two quick real points. One is Fourth Quarter last year, profits were down, yes, about 4 . But if you take energy out, they actually work up 2 . So four quarters of declining profit growth, its all a function of energy. The second thing is, i always look, and i know you do, too, larry. Always look for some major event to affect the economy. The threats of prosperity are bad monetary policy, bad tax policy, bad trade protectionism, and Government Spending and regulation. So thats usually its usually the fed that causes recession. And the feds just not tight right now. We have 2 trillion of excess reserves. M2 is accelerating and it looks to me that the economy is going faster. Quick, larry. I sure dont see faster growth. What ill tell you the solution to our problems ill say this for the millionth time, slash the Corporate Tax rate. Slash it. Youll get more investment, more Capital Formation and better productivity. Unfortunate list, that is a ways off and thats why im worried. Thank you both. Hope we can somehow overcome these concerns. Meantime, larry kudlow, brian wesbury, on the health. Economy. Mike, were well off the highs. The dow was off 100 points top. Hour. And s p only 17. Nasdaq up 13. Well tell you what numbers analysts are looking for for sixplus companies next. And bill cohen gives us take on strained relations between the u. S. And saudi arabia. And who he thinks is really in charge in that kingdom. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. 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Take a look at solarcity. That stock has been soaring. The board of supervisors vires solar paneling. Good luck with that, its hoping solarcity up 8 today. And its an earnings parade today. Lets get a look at three bigger name. Kayla tausche and bill cohen. Kala, what are we expecting to see . 1. 05 is the earnings. And Analysts Expect a slight increase of about 1 from last year. Here a few key items that were watching for. First, the company has said there would be 125 million onetime benefit because they sold a jetblue portfolio to mastercard. The company also said expect the dollar to hurt even though it stabilized. And also the fact that gas prices have remained low consumers are spending less money on their cards. That means take home is much lower. The company outlined 540 to 570 a share. Well be waiting to see whether the Company Reaffirms that. Well see you in a couple minutes. Lets see what to expect from the friendly skies with phil lebeau. Hi, phil. Hi, kelly, when the earnings come out within the next half hour, 1. 18 a share. Thats the estimate of what people are expecting down from a year ago. Revenue just over 8 billion. Last year they brought in 8. 8 billion. The key to focus on what do they say about passenger availability for the street mile. Thats the metric they use in the industry. Like any under pressure for united as well. We dont care about the First Quarter as much as what they say the outlook Going Forward. That call is after the bell. We get the numbers within the next half hour. Well be on the call and well have them for you. John ford is tracking. Qualcomm. Let me cut straight to the chase, the main number is msm shipped shipments both in this report. Thats going to be the clearest gauge of overall smart fund demand in the q2 report which some analysts hope will be the bottom as far as volume. And more importantly, q3, given intels report particularly important for here. For q 2, looking closer to 85 million, down 20 from last year. Its go to be key to understanding the market especially the snapdragon 20. High expectations. Im not saying that number is going to be what moves the stock in the short term but its the most significant trend for tech investors to watch. Thank you, well see you after the bell. We have 13 minutes to go. Amex interestingly also one of the top performers today. Goldman contributing, dollar index higher. Nasdaq up 11. And erica knuteson believes the best may be overseas. Hell tell us next. 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. Welcome back. Markets still modestly high per. A little bit off the highs. Sectors in the treated. Energy on top of the crude rally. And utility its and some other yield sectors are down. Here to talk more about the markets. Eric knudsen. What is looking relatively attractive . Were on the margin. Were a little overweight on equities. European equities being most attractive. And the ecb has got all of it, credit growth improving. So were seeing good opportunities there. You sure theyre not pushing on a string there . And what about japan as well there may be a similar argument . There certainly is that risk. Were much more concerned about it in japan. The b. O. J. Has taken a lesson with the experiment with negative Interest Rates. We think theyll continue their stimulus in traditional and nontraditional. The in earnings market, coming back. Weve been cautious on the emerging markets. On the two we prefer debt where we think weve got a little more safety. We took advantage of the kind of the selloff, the panic that we thought was a little overdone in february to add some exposures and emerging market equity. Midfebruary, later in the month. Then again later april. Even as weve been dialing back. Sort of bottomtimed it there, i guess . We got that one right. What about u. S. Equities. Weve talked about concerns people have on valuation, especially on the more loved parts of the markets, those yield plays . Yeah, we would call it fair. In our global allocation funds were biased towards value equities where we think theres been a significant gap between the momentum, the Growth Leaders and a lot of the value sectors where we think there are great opportunities Going Forward. Does that mean cheaper stocks. The value indexes are full of financials and Energy Stocks and the rest . Yes. We think there are good opportunities in financials particularly in the u. S. As opposed to other parts of the world. But in energy, there have been very good opportunities. Actually one of the more interesting areas weve seen in energy is doubledeep and tripledeep Energy Credits which we think have been unfairly beaten down. And with financials, specifically, in new york, many of those piled into those at the end of last year got burned because it isnt playing out . Yeah, absolutely. We do think that was overdone. Weve seen that with the fed walking back. And the financials which around going to drop off a cliff. We prefer u. S. Financials. More of the banks, the money center sectors. And weve been seeing that improvement in the last month or so. As that sector is doing better. Just quickly, that implicitly a fed call . Do you actually think weve got a couple rate hikes this year . Were on that side. We show the fed rising twice more and we think the economy can handle that. Wow. There are others who have pushed out all hopes and said no more are coming. The markets can change lots of minds. Thats right, thats right. Youve seen the market and the fed come closer together. And the markets come closer to our view as well. Erik, thank you for joining us. The eposings countdown. And then buckle up. An orange onslaught. American express, qualcomm, mattel, sands, well have that in a couple minutes. Youre watching cnbc. First in business worldwide. Its been shaken and pummeled. Its innovative enough to brake by itself, park itself and help you steer. Its been in the rain. And dragged through the mud. The 2016 gle. Its where brains meet brawn. Lease the gle350 for 599 a month at your local mercedesbenz dealer. Or the freedom to choose what doctor you want to see. So if you have medicare parts a and b, consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Like all standardized Medicare Supplement insurance plans, these let you choose any doctor who accepts medicare patients. Youre not stuck in a network, because there arent any. 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Welcome back to closing bell. Im seema mody. I want to point your attention to the gold miners. They were initially higher around 3 00 p. M. They reverse trade and now on track to end discussion. Newmont mining trading slight lower. This as gold prices decline. The u. S. Dollar has been resuming its upward trend. You there go, market vector, gold miners, etf, down 2 on the day. Seema, thank you very much. Bob, a really quiet day in the green, though . Yeah. There is a bid to the market. And everyday, a little more, were 200 points away from a new high on the Dow Jones Industrial average. We could get there, i think, at the end of this week if we get positive comments from the big industrials like ge and caterpillar. Illinois tool works had beat their numbers, raised their guidance overall. Now, were hearing in investors and its not as bad as people feared. We did, as kayla mentioned sold off around a3 00. We have resistance. 2130 on the s p 500. The question is if you get that sticker shock. Weve never been higher. Also the vix its collapsed. Its fallen more than half since february. Around 12. We didnt really spend hardly any time last year below 12. Even in the summer, below it. That has some people saying, look it reflects a very quiet market or people are getting a little too comfortable. Yeah, certainly. I want to point out, the dollar strengthening as mike was mentioned after 3 00, a lot went down. You take a look at utilities, utilities were weaving a little before that. I just want to say that, the ipo market we keep talking about it but its finally showing signs. Mgm and it opened at 2175 mgm growth properties. Excuse me. Thats the week for mgm. And bats global, at 19 is holding up terrifically at 23. Its down a little bit today. Again, two big ipos in the last few days. Tomorrow, american renal. The biggest owner of dialysis machines here in the United States. Theyll be here ringing the bell and talk ago about their ipo tomorrow. Big question if you see some of the smaller vote saying we have a window here. I think theyll move. Got to have growth there, and profitability, very important. Bob, thank you very much. Ringing the bell at the ny, we have lynnette company and up at the nasdaq, its magyar ba bancorn. Thank you. Mike, welcome to closing bell everybody. Im kelly evans. Here how were finishing up the day on wall street. 3 00 p. M. The dow was up 100 points. Slipping back below the 18,100 mark. Still a quaint of. 25 . The s p 2102. Nasdaq up 8 point, nin4998. Its about 50 points away from the closing level. Now, hold on to your hats. Were about to get a barrage of earnings reports. In fact, six reporters, six boxes, standing by to cover the results for us Kayla Tausche on amex. Phil lebeau on united. John ford on qualcomm. Susan lee for young brands and colby reagan covering mattel for us. That hexabox, guys . Is that what six is . Cnbc senior markets commentator mike santoli here with cnbc contributor carol roth. Welcome. More earnings due out today. Lindsey bell joins us. And steve vasso will join us in just a amoment. That hexabox. Is that six . What happened to three . I dont know anything in particular happened a eed at 3 . Youve had a ke16 move in abou 9 1 2 weeks on the other hand you havent had any jerky action. Clearly, earnings have been good enough or at least good enough to make people hopeful of those everpresent second half comeback expectations. Lets see if qualcomm is moving at all. Looks like those number us are starting to come out. Of course, ill have much more information four remember with intel stocks that stock has halted yesterday. It looks like its moving higher. Carol, on the markets what do you make of things today . I think were what, you know, 11 days away from may. What do they say, sell in may and go away. We may be in for that again. Certainly, im somebody who is not necessarily as comfortable at these levels as february when i deployed more capital into the market. I think there are a lot of things to be worried about. Including the overall forward valuation of the s p. Visavis what you think the overall growth environment is going to look like. In terms of growth to gdp, i just dont think it justifies the valuation at the levels were at. Certainly the market disagrees at least for the time being. I would be very surprised if this is a rally that continues to be sustained. Lets look at Las Vegas Sands. As they comb through them, we got sixplus Major Companies posting the results this afternoon. Again, well have more comprehensive information for you in just a bit. Theres Las Vegas Sands down in the early very early read, we should emphasize on this. Lindsay, notably, weve had even more companies than usual beating their expectations, havent they . Oh, yeah, 74 of Companies Beating analysts estimates and thats better than the 66 historic average. But its not that surprising because numbers were cut significantly in the First Quarter. We havent seen a cut like that since the 2009 period. So we should continue to see better numbers come in. And companies are providing guidance better than what analysts are expecting. Steve off the floor. Do you know what happened at 3 00 today . Yeah, everyone got a little scared. I will tell you, you have to look at all of these things as support and resistance levels. So we were touching basically some resistance levels in gru i. And also the s p cash. You bang off, you come back, give it time to absorb. Weve moved really fast. And holding it is extremely positive. Were showing the shares of Las Vegas Sands. Our jane wells has those results for us, jane . Hey, kelly, a miss on the top and bottom line. Theyre saying adjusted earnings per share coming in at 45 cents. The street was looking for 63. They also have what a call a hold normalized 67. Total revenues coming in at 2. 72 billion. That was another miss. The street looking for 2. 9 billion. Now, it looks like the weakness for the most part may be in las vegas. The venetian mccow operation have net revenues of 700 million. Vegas came in at 380 million. I have to go through the number morse carefully to see whats happening in china, in particular. But some, at least at first blush, decent news about china. Overall, the number is a big miss. Jane, those shares down 6 . Steve, its interesting that its going to shift from mckow to las vegas. Its going to be 2 to 1 by las vegas. If you look at that shift, las vegas being the weakness, theres a reason why mgm has underperformed, it flipped in leverage versus them and vegas. This is outspoken, adding a lot of tailwinds to the game. If you believe china stabilized, thats where youll be. But if you believe theres a problem in vegas trying to read through that. This is what happens. It doesnt take a whole lot. But it very different than what the average investor was expecting. They were expecting there to be strength in las vegas. Right. Especially as the consumer strength has kind of u. S. S. Ed itself out. John ford has the quarterly results. Overall, the numbers look pretty good. Top line, we were looking for revenues 5. 34 billion. Qualcomm turned in 5. 56 billion. The street was looking for 96 cents nongap. Qualcomm turned in 1 04 cents. On the guidance, i said watch for msm ship shipments. We were looking for 185 million on that line. It came in on 189 million. Pretty much in line. A little bit higher where some analysts hoping it would. On the guide. On the guide, they say that revenues for q3 should be 5. 8 billion. Thats a decrease of 11 to an increase of 3 . Sorry, the range. I gave you last years numbers. The range will be 5. 2 to 6 billion. Thats an increase of 3 . Potentially getting some growth are there. Msm shipments, 175 to 175 million. Thats the samemy point. 185 million. It shows some stability. Not the kind of growth that some people were looking for it would be a decrease of 13 to 22 . Im sure analysts will be listening to the color around msm, just the overall demand. Now do they feel about the snapdragon 820, their flagship. Of course, im going to talk to qualcomms ceo on the phone in a few minutes. John, well see you in just a moment. Those shares have been fluctuating. Lindsey your thoughts . I think expectations were super high. You got to remember the stock moved up 21 from its low in february. So there was great contract wins with samsung and even license with lenovo. I think there were huge expectations going into it. Exactly. Same old tune to some extent here. Lets check in on toy maker mattel now. Weve got the earnings with courtney reagan. Hi, kelly, so mattel posting a First Quarter loss of 13 Cents Per Share. That is a wider than expected loss. Consensus was for a 7 Cents Per Share loss there. So thats a pretty wide miss. Revenue, though, beating at 869 million. The street was look for First Quarter mattel revenue of 861. And then when we look at the revenue by segment. It does look like the total girls and boys revenue was disappointing as well as the american girls. Both of those revenue segments disappointing though fisherprice revenue coming in worldwide looking at Worldwide Growth for barbie flat for currency and for the Wheels Division which includes hot wheels actually up 9 . Calling for more details but that release isnt that detailed, kelly. Well have for wait. Earlier in the week we had hasbro that did nicely, help from disney lines there. Mattel, a different story. Yeah, i have a client thats a direct competitor to mattel. I know the currency issue has been a huge drag on sales across the globe where different people are interested in toys, collect toys and things like that arent able to do that avidly as before. Its very interesting if you look at mattels valuation, visavis somebody who doesnt have those key franchises, mattel looks very expensive. Theres one place thats not expensive, is the dividend 4. 6 . People were factoring in that loss of the princess line. That was already in the number. Hasbro was a little telegraphed. Both of them year to date have performed pretty well. Cause see on the screens there, amex starting to come out. You see if its moving at all a little bit. Well just keep an eye on it. Lets go back over to Las Vegas Sands in the meantime, though. This is really interesting. We just had mgm put its i po into the markets you have to wonder how different it might have been a couple hours later. That is true. Its basically areit that owns the buildings. Lets get back to jane wells on more on Las Vegas Sands. Jane. One of the reasons, kelly, for the miss is theyre blaming the strong dollar in singapore. Net revenues for the sands property in singapore came in 6. 4 million. The street was expected 338 million. Significant ga po singapore a big miss. American express earnings are out. Kayla tausche has results. It does look like a beat on the top and bottom line, kelly. Revenues just shy of 8. 1 is billion. That is a beat. The expectation was 8 billion. Eps, 1. 25 a share. Still a decrease of 2 from a year ago. The company did see the company go up slightly from marketing and promotion initiatives. They did also see an 84 million restructuring charge. Overall expenses were 5. 5 billion. That actually was up 5 from a year ago. Despite the fact they had the restructuring. The company did reaffirm its fullyear guidance and 5. 60 a share for 2017. The ceo says that remains appropriate given the environment that we are in. So, certainly, it would be a beat on the top and bottom line for amex. Slight increase in expenses. Slight headwind fund as we expected. Well give you more as we have it. Kayla, back to you. Thoughts on amex, mike. Im not surprised. A third of the way through the year if you can have confidence in the Consensus Forecast for this year, it looks cheap. It looks like 12. 5 earnings. And theyre still trying to get costco off their pack. The sock is down 30 . They lost 47 of the stocks value. And the winners have been basically mastercard and capital one. Those are the names that really benefited. I think mastercard is probably up 20 from the time when they lost when American Express lost it. But year to date, American Express didnt lagger i dont know if you have seen money coming in. Ive seen a ton of uncertainty because of the loss of costco and jetblue, trying to figure out how theyre going to make up that business but it seems like theyre doing okay. They also have other businesses that more strategic to the customers. I think that thats a bigger issue. But this particular name, though, i dont see the stock moving meaningfully until they have some sort of a management restructuring. This is one of those head scratcher names, mike, like you were saying, an incredible brand that really hasnt been able to leverage all of the assets. This is not your dads brand, though. I think thats actually totally valid and you have to ask if its going to maintain that premium status. The shares up nearly 4 . A quick recap, Las Vegas Sands, qualcomm, and still waiting on yum brands. It looks like the exception of amex, its now up nearly 4 . Yeah, i mean, youre going to get that last to the dance type play where people are going to start buying down 6 or 5 coming into this year to date. There is the healthy amount of that catchup trade. I just dont know how long it lasts before people say this is the one but its a different business model. Thats the issue. This is really more between a hybrid between a visa and and a bank. If youre looking at visa or mastercard, thats why youre getting a different kind of evaluation on amex. Thats the reason why money hasnt been flowing into that, people want to play that direct fewer play than that banking. Exactly. Lets have a quick look at those shares as we get the full results to you. Yum brands in focus because of its efforts to right the ship in china. Well have more detail as in just a moment. Mattel, anything else to add . That one does seem specific to questions about which of its retail lines are succeeding . It does. Also keep in mind, is this not the biggest of the year for mattel. I do recall years ago. You talk to the mattel people, you ask about traditional toys. They always talk about the global appeal of the same type of toys, basically play patterns of little kids are the same around the world. Think about their Marquee Brands. Their Marquee Brands are barbie struggling for a long time. And hot wheels which has lost luster versus somebody like hasbro which has hopped on hot properties theyve got star wars and the like. I think it continue to be a struggle for mattel to redefine what theyre going to do with their business. Theres been talk with mattel and hasbro potentially merging to bring that together. Maybe thats an interesting play. Right now, i still dont see those brands barbie and hot wheels, those arent the hot brands that are all of a sudden going to justify, in my opinion, the 39 times p. E. , even if you have the huge dividend. I think toour point, this is a transition year for mattel. 2017 is going to be the bigger year with the movie slates. Wonder woman, cars 3. Yum brands, those shares under pressure as we started to get results. Susan lee has it. The shares are going the opposite direction. Thats because we got a big beat. 95 cents in the quarter, calling for 83 cents. When it comes to revenue, a slight mishit here. Yum put in 2. 62 billion. I think some of the Silver Lining comes from china. Sales were expected to be up by 2. 2 . By got 6 increase on a yearonyear figure. It looks like china is recovering from them. China accounts for half of yum s business. When it comes to other break ground, kfc, and pizza hut and taco bell in line, kelly. Interesting reversal there up about 5 and then some. Now we have two companies, yum brands and Las Vegas Sands posting a little better in china or macao. What does that tell you . Thats pretty impressive. Various parts of the markets. Even though the shanghai market has been as jumpy as ever. With the laggard stocks, this is a 95 stock. To mikes point, when you start looking at china, this is the big thing on yum s back. Everyone was really selling, laying into it. Then when you Start Talking about that china spin. I think things as long as china wasnt as bad as everyone thought it was going to be you were looking for a pop of the stock. We also had an activist starting to talk about it yesterday. Dominos has been a leader, mcdonalds. Changing the menus, changing that drivethrough. People spend money, 20 of where they spend the money on is where people are shrinking the menu down. I think yum had had very specific issues to certain of their brands in china. I think its 100 china. This move that you see is 100 china. I dont think its as much as china stabilizing as yum getting their act together. Well have to see as earnings play out which rings true. Thats a great piece. Steve, well let you guys go. Theres more coming up top of the next hour on fast money, talking to a fivestar fund manager who is discovering a new trend in tech. Weve got much more in the tidal wave of earnings. We still have to hear in united. Up next, is the worst now over for amex . And later, former secretary of defense William Cohen weighs in on saudi arabia is and national security. Dont go to paris. Dont go to la. Dont go to tokyo. Live there. Hey, welcome come in, come in. When you airbnb, you have your own home. Make your bed. Cook. You know, the stuff you normally do. Wherever you go. Dont go there. Live there. Even if its just for a night. Im a Customer Relationship im roy gmanager. Ith pg e. Anderson Valley Brewing company is definitely a leader in the adoption of energy efficiency. Pg e is a strong supporter of solar energy. We focus on helping our customers understand it and be able to apply it in the best way possible. Not only is it good for the environment, its good for the businesses bottom line. These are our neighbors. These are the people that we work with. That matters to me. I have three children that are going to grow up here and i want them to be able to enjoy all the things that i was able to enjoy. Together, were building a better california. Welcome back. Were still waiting on those results from united. Lets get to susan li for more on yum s results. Yeah, kelly. Yum brands after hour, the full year, they raised the guidance, up to 12 which is higher than the original from 10 when it comes to earnings growth. Were awaiting the analysts call tomorrow morning where everyone is looking for more guidance as to what theyre going to do with the China Business b as you know there were have been several reports, cic and kkr might be involved in taking controlling of operations. Obviously, investors want more clarity on that. Back to you. American express, moments ago the Company Reported earnings atop expectations chris dones does it buy them some time . I think it does buy them some time. What it shows theyre able to add 3 million card holds this quarter which is great for them. Thats off a base of 40. They moving on in that front. They still have a lot to do in terms of the costco business. This is a step in the right direction for American Express. You know, chris in the leadup to this report, you had a lot of people coming in trying to figure out what the sum and parts of American Express is worth. Whats the back end of it was relative to the visas and mastercards. Where do you think this thing should trade as kind of a hybrid of a lender . It should trade higher. Right now 12. 4 earnings. You look at visa or mastercard, a 12 multiple. And you can look at a case of American Express which generates half of its revenue from discounts or transaction revenue, it deserves somewhere in the middle of the pack there. Now got to work through costco and other things first. But ultimately, thats where the multiple should shake out over time. Chris, its carol roth, this seems like the type of company that would be a perfect activist corporation if it were not for berkshire having such a large position in the company. Why has Warren Buffett not put more pressure on this team to do the kinds of things you might see an activist do . It does seem like there could be a lock in this space and that the team isnt aggressive enough . I agree with you on almost all those points there. I think there could be more pressure on management to do more. I think weve seen in activist that theyre towing the water on this one and sort of pulled back. Im not sure why mr. Buffett has the views he does. This is a great franchise. Its a trusted brand. Its well positioned in a lot of ways its the kind of company that a lot of startups want to partner with because American Express cardholders spend two, three, four times more than other cardholders. Chris, whats the most significant move for this company next, quickly . I think its expenses on the billion dollars of expense cuts they expect by the end of next year. That and management if they can shift some stuff around. Chris donat, joining us. Thank you. Qualcomm shares are falling. Despite better than expected earnings. Were going to hear from the ceo next. Qualcomm shares roughly flat right now. Amazon took on netflix by announcing the streaming service. Now, its taking aim at the cable industry. Those details are also coming you on the closing bell. Welcome back. Closing out the big six here, weve got an earnings alert on united. Lets get to phil lebeau with the numbers, hi, phil. Hi, kelly. United airlines reporting earningses of 1. 20 per share. That beat 1. 08 per share. Thats a decline of 4. 8 compared to last year. The main metric that everybody is focused on with online united but all the airlines what is happening with passenger revenue with the seat model. It dropped 7. 4 in the First Quarter. You can blame that on the strong dollar, lower oil. And one other interesting note, it noticed a decline in dramain closein reservations for Business Travel around the east Easter Holiday and spring break. Again, united beating the street by 5 cents. Theres a Conference Call of the ceo starting in about 15 minutes. Well hop on that if we have more color from the earnings report. Well let you know. Phil, just briefly, what is this closing Business Travel . Does that mean last minute. Yep, basically next five days, got to book it. United shares are a little weaker on this report. Tomorrow on squawk on the street dont miss the exclusive interview with Ceo Oscar Munoz since his heart transplant in january. Thats tomorrow at 9 00 eastern. What do you make in the 7 drop . Certainly, im not to blame for that. Im doing my part keeping united flying the friendly skies. I dont think this is really the focus for united. They have made a big announcement with the shift in the board. I think everybody is looking at whats next for united and can they change the dynamic. I know from an internal standpoint, everybody is very excited with oscar getting back involved with compete. So, i think theres a lot of good expectations Going Forward. I think industrywide, youre stealing with this idea has passenger miles peaked. You look at it cosmetically, all of the stocks look relatively ship. Delta is even cheaper. The question is do you buy a deep cyclical stock when i think the whole industry is going towards finding different ways to generate revenue from ancillary services some of the things were used to being bundled in. But just other ancillary bundled in things. Like club lounges offering things. Lets get to sue herera. Hi, kelly. Secretary of state john kerry arriving in egypt for a brief visit. He met with egyptian president a assisi to discuss a range of issues. And he will join president obama. There are reports of a deal between volkswagen and u. S. That would avoid a trial this summer. Ap reports volkswagen insitting to bay pay 1 billion. In a surprise move, embattled Pennsylvania Attorney general Kathleen Kane has dropped the court motion that accused prosecutors of leaking fbi recordings in a perjury and obstruction case. Kane will not seek reelection. And mcdonalds is testing a bigger and small version of its big mac. Theyre dubbed grand mac and mac junior. And theyre being tested in ohio and texas. I dont know if youre doing a big mac, do a big mac. Dont do a big mac junior. Its kind of counterintuitive. Yesterday was all you can eat fries. Today its grand mac. Its part of the whole rejiggling of mcdonalds and its menu. It has been page off. The all Day Breakfast is helping its bottom line. Its working. Las vegas sands earnings called out to begin for monetary coming up. First, former defense secretary William Cohen joins us whether we risk saudi arabia with the 9 11 bill allowing victims of terror attacks to sue that nation. Stay tuned. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Show show me more like this. S. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. Welcome back. Heres a check on some of the earnings that weve seen so far Las Vegas Sands just beginning. Well bring you the highlights. Meantime, mattel, Las Vegas Sands under pressure. Qualcomm and amex higher on results. We told you Harriet Tubman will replace andrew jackson. And the first treasury secretary Alexander Hamilton will remain on the ten dollar bill. Nbcs tom costello spoke with secretary jack lew earlier today. Heres what he had to say. We also heard about literally hundreds of ideas of things we should represent. Fairly early in the process we made this bigger. We said this shouldnt be about one picture on one bill. Thats where this idea derived from. Its much bigger than honoring one woman. Its able to tell a much bigger part of our story. By the way, former fed chairman ben bernanke weighing in on the blog saying perhaps the treasury should move like the post office to avoid an uproar of whos on them or whos not. I dont know if thats feasible. Seems like they were trying to slow down the process because of a hard transition. Secretary lew giving tom c t costello his take on saudi arabia. The saudi economy is in a little trouble, as you probably know better than we do. They had borrow money for the first time in 20 years. Theres talk of them offloading bonds and treasuries. What the state of the saudi economy right now . And what is the impact on the United States . Look, obviously, low oil prices are having an impact on the economies of countries who are Big Oil Producers and exporters. I think saudi arabia still has considerable financial bandwidth and ability to manage its affairs. And we consult closely with the finance ministry and the central bank. And we keep very good communication with them. What would be the impact if the saudis did sell u. S. Treasuries if the 9 11 bill were to pass . Im not going to comment on speculative financial transactions. Obviously, the president has addressed that with the saudis all the time to improve the cooperation on things like stopping the financing of terrorism and innocent money activities. And having a healthy global economy. If oil doesnt recover is the saudi economy in for troubled times ahead . I think the saudis like all Oil Producers are coming to terms with what is a lower price of oil for now. I think one of the things we all know about oil surprise, you know, they go up, and they go down. And you have to plan on a certain amount of volatility, if your economy is based on a commodity like oil that fluctuates in price. Joining us right now for more on saudi arabia is former defense secretary bill cohen. Thank you for joining us. And what do you make of the relationship or the tension here between the u. S. And now saudi . Well its quite strained. The president goes there at an interesting time. And i think that there will be an opportunity for all of the gulf leaders to lay out some of the their complaints. I think as far as the saudis are concerned three or four different things. Number one, theyre obviously concerned with what appears to be a shift on the part of the United States towards iriran, especially with a nuclear deal. Theyre also concerned about the lack of an intense situation with the United States with respect to isil in both their flens presence in iraq and syria. Theyre also concerned about yemen and syria. And theyre concerned about the proposed legislation, the 9 11 bill thats working its way through congress. Yeah. And on that bill do you think it would be do more harm than good long term both for this country and for others . I think wed have to take care here that we dont do something thats going to open pandoras box as such. If other countries do the same, and they might be tempted to because the United States will set the standard, then the question becomes what happens well, take todays headlines. Were going to do more bombing in the area of iraq and syria. More civilians are going to be killed. What is to prevent another government from saying well, we think the United States should be held liable for those civilian deaths, opening up the floodgates to start suing the pilots, those preparing the war plans all the way up to the secretary of defense and the president himself. Its not likely, but its possible that those are the kinds of things well have to deal with in the future. So i think the president is correct to say this is for the government to resolve. If theres any allegation that is supportable on the testified that the saudis were at the governmental level involved in 9 11, well, that would require the u. S. To take action against the saudis but its not up to individuals to do that. And i think thats the way the law should remain. Do you think there needs to be some clearing. Air in what saudi arabias role was in the 9 11 attacks . I do. But we have to remember the 9 11 commission was comprised of many individuals, all, or certainly most of them had deep backgrounds in intelligence. And they had access to all of the intelligence the United States had. They came to a conclusion there was no evidence that the saudi government or highranking officials were involved. Theres a separate report, a 28page report, that has not been declassified. Now, it may be that the administration is going to say its time to declassify that. And that may open up the question of what to what extent, if any, the saudis were involved in the funding of that those individuals. But theres an additional element involved. And that is, of course, the entire issue of wahhabiism, the form of it and did it lead to individuals embracing it and therefore directly being a cause. You have to rely on the 9 11 commission if any of those members believe that the saudis were involved and failed to voice that, then they would be engaged in a massive coverup of unfortunate circumstances. The stakes are higher. Thank you for joining it. Bill cohen this afternoon. Amazon made headlines announcing plans to launch a video rival service with netflix. Now its launching a service that could threaten the entire industry. Details when we come back. Suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. 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, 2 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. Welcome back. Amazon is quickly becoming a bigger rival to Cable Companies with its streaming partners program. Its launched it will bring all of the Top Streaming Services in one platform. He said amazon has secured nearly 30 partners including apps like starz and showtime and plans to announce dozens more. How big of a threat is amazon to traditional cable . Lets bring in dan raburn for his thoughts. Dan, whats going on here . Thanks for having me. The biggest thing that amazon is doing is helping with fragmentation in the market. As consumers we dont want to go to five or six different places to sign up for accounts. Amazon, hulu, theyre basically in one place. Dan, how realistic as everybody gets into the content game is that really going to be . It seems to me at some point were going to have to go to multiple places to get the content. Amazon obviously is very sexy right now. But over time, theyre certainly not going to be able to pick up the smallest guys. The smallest guys arent going to be able to afford joining forces. What do you think towards that . Thats true to a degree. Talk about cbs. Cbs rolled out cbs all access. They spent about 18 months to bring it to the market. A customer like cbs or another broadcaster content can go to amazon who has an end user ecosystem that can get that is its service to consumer right away, 18 months, the biggest thing they can do is market that to specifically the customer. The advantage that they have, the fact that they have your billing information and the fact that you go to amazon for content it makes it easier. Amazon is making it a lot easier for customers, consumers and broadcasters. It seems more, ultimately, this is where netflix would want to head too. It wants to basically be, i would think, the interface between internet television, right . It doesnt have to be this idea that its an integrated model and only distributes its own stuff. Why cant they be the interface and have an a la carte menu of other options as well . Thats a good question. Something that were wondering is netflix going to do. Are they going to offer more alternatives other than what theyre licensing. To date, they havent wanted to do that. Well see if amazon forces them to become internet tv. Dan, thanks for joining us with some thoughts there. Now qualcomms ceo is speaking out to jon fortt well bring you those, after this. Its not your standard family situation. Just me. Me and my four daughters. Ah, theres a lot of dancing and pageants that go on in our kitchens and living rooms and things like that. Ive had to learn to accept certain things like the fact that my toe nails and finger nails are going to be painted constantly. But its really awesome to watch them at their own things. Theyre great kids. All of them. Whatever home means to you, well help you find it. Zillow. Came courtesy of james and patricia thompson. This tv . Margaret and tom lee. The championship game ball . That was sebastian diaz. Good guy. And all i had to do was ask for their money and pretend i was investing it. Their life savings is now my lifestyle. Female announcer dont let someone else live the life youre saving for. Find out if youre dealing with a registered investment professional at investor. Gov. Its a great first step toward protecting your money. Before you invest, investor. Gov. Our jon fortt just spoke to the ceo. The calls just started, got more detail from the ceo and top execs. The stock up better than 1 after being down. They said that ship demand is actually strong across geographies, particularly their strength in china, despite some weakness in the premium tier in other areas, particularly other emerging market areas including latin america, and some other areas. The strength in china is interesting given intels commentary on pc sales in china, which were weak. Lte, the transition to higher speed wireless, is still driving that china demand. They also told me the snap dragon 820 will show up in the Current Quarter q3. More in q4. Thats lifting margins. Theyre raising that four points. The emerging markets, weaknesses which caused them to take down their overall expectation for shipments for the year, but margins good. General strength across the board particularly in china, more commentary on the Licensing Agreements in china that caused them so much trouble last year. They now have more than 100. They seem to feel those are behind them. Qualcomms been going through restrek turg for a couple quarters now. Qualcomm saying they already pulled some of the cost savings forward. Theyre doing well on that. And continue to be on track with all of those moves, kelly. Jon, just briefly now, weve heard from ibm and intel and others, here now qualcomm. How would you put these in context of what were learning about tech broadly this quarter . This is a head scratcher. The picture had been a shortage of demand across consumer and enterprise. Some strength in cloud. The big providers like your amazons, microsofts, facebooks still buying. Weakness on the pc end as well. Ibm saw weakness that was causing them to cut work force overseas. This from qualcomm suggests its not just an across the board story and weakness in demand. Smartphone demand, x the premium here actually pretty decent, especially when you get out of emerging markets. No one size fits all in china either. Weve heard that from a couple over companies as well. Thank you, jon, so much. Alphabet will headline another huge day of earnings on tap for tomorrow. Well tell you what to expect. Take a look at this calendar. Oh, man. Well be right back. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. 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And whats going on both in terms of their mobile app and loyalty program. Theres been a lot of fallout from it. Be interesting to see where guidance goes. Or perhaps that they may dial back expectations because of that. Starbucks, a couple of months ago, a huge sort of plant the Flag Movement to china. Going to open many, many stores there. The consumer demand for the next generation. Yeah. Thats multiyear, and people love the idea. They also were sort of the exception that was proving the rule over there, where starbucks seemed to have its own momentum. It wasnt really about the health so to speak of the chinese consumer. Street blocks in beijing are so big, it makes washingtons blocks look small. There could be a starbucks on every one of those blocks and it would still be too far. If anyone can put them in a location where you wont have to walk too far, it will be starbucks. Well get the earnings tomorrow. The calls all start, what do you think will be most important . I have to think qualcomm we pretty much where they stood on this. Wynn is up off the lows. You want to hear whats going on. Is that nevada . Tourism in nevada, that will tell you Something Different about the consumer. Carol and mike, thank you, guys. Fast money begins right now. Fast money does start right now. Im melissa lee. Traders on the desk are pete, brian and dan. Tonight on fast, earnings bo nan sa. Qualcomm is slightly higher. Las vegas sands is tanking. Well have full Team Coverage throughout the area with the headlines as they break. A top technician said new highs are coming if two very important things happen in the market. Two tech stocks traders see moving, 50 billion tomorrow. The names and how to play it. But first, we start off with the market that just