Transcripts For CNBC Closing Bell 20160422

Today encouraging the uk to stay in the european union. Former Central Bank President will join us with his reaction coming up. Valiant shares spiking on reports the company could have a new ceo. We have more coming up. Lets begin with the big earnings themes. Mcdonalds and tech, seuwere looking at the impact of tech earnings on these markets. Lets start with the industrials, bob. Three big industrials, all with modestly more positive commentary. Focus on that. I want to start with the ceo of General Electric. Conference call this morning came out. He acknowledged oil and gas was challenging. He went on to say aviation was showing strength. Healthcare was rebounding. Thats a strong word and china was showing improvement. Plenty of business to achieve our goals. This is more positive than a few months ago. Lets move on to caterpillar. Sales declined. But the ceo came on air this morning and said overall i think were close to the bottom. Thats a positive comment. This company has seen declining revenue since 2012. There was honeywell. It beat on the top and bottom line. The growth accelerated overall in the aerospace area. They raised the end of the 2016 guidance and organic sales guidance. 2 it was 1 in the First Quarter. That was an improvement. Look, lets look at the prices right now. Big question, why are they down . Generally had positive commentary. I think the problem is, these stocks have run up and the market has become a bit more expensive. Just take a look at some of the big names here. Caterpillar is trading at 21 times forward earnings. Ge is over 20, honeywell, 17. Guys we were talking about this earlier in the week this was going to be a problem. Youve got the run up in the anticipation of these Companies Might have a somewhat more positive tone. Now, of course, the question is, where do we go from here given the expensive valuations. We got ge, caterpillar, else where the dow 30. Mcdonalds is getting a boost from all Day Breakfast. Susan lee has whats going on there. Its a quarter that mcdonalds kill take anytime. Beating across profit sales. Eps coming in ahead of estimates. Earning 1. 23 a share. Beating 5. 4 billion. All Day Breakfast continuing to drive earnings improvements for mcdonalds. Is there new mcpick two menu. Choose two of their items for 5. China was a big driver for mcdonalds in their higher earnings. The ceo broke on the mcdonalds analyst call. Strong comparable sales growth is 7. 2 . The market also made significant gains in market share despite persistently challenging mcdonalds is still banking on china hoping to make it the golden arches second to largest market in the world after the United States. Mcdonalds investing heavily. China, hong kong, korea looking to open 500 stores in the next half decade. People thought this would be a big head wind in the report card. Looking forward they say it will impact the Second Quarter maybe by 2 . When it comes to capital return to shareholders, he said they expect to make more of it, just in the next few months. Mcdonalds on track to return 30 billion back to shareholders over the last three years. Back to you guys. All right. Susan, thank you very much. Hard to really assail those fundamental things going on with mcdonalds investor pleasing actions. I want to put it in context. Mcdonalds stock is up 30 in the last 12 months. Other stock s of what i would call an every day food. Are you an every day mcdonalds eater . No. They do a lot of business. Tyson, mcdonalds, cisco, these are the kinds of consumer staple stocks that have been very much in favor right now. I dont think necessarily mcdonalds its all about the company its keeping. Its worth noting its had a tail wind in terms of Stock Performance because of this kind of peer group. Are you suggesting its not can i get a mcpick too . Those commercials were blanketed. Speaking of a companies that have seen a run up the past few months. Well, with the s p 500, climbing back up towards its record high, you had to have wondered can it get there without the support of very big influential tech names. Were seeing the wider effects of earnings from alphabet and microsoft today dragging down the Broader Markets, especially the nasdanasdaq. One very big name has been sitting out of the rally, thats apple. The most valuable company in the s p. Its been down more than 5 over a week recently. And historically, the markets have had a hard time bucking a bearish apple. We look at what has happened in the past when apple continued to fall 10 in a month. When thats that happened the s p 500 drops 80 of the time and loses more than 4 on average. Another potentially bad omen, alphabets earnings miss. Historically alphabet, the s p 500 and other big tech names are reliably lower a week after googles Parent Company misses the expectations. If tech doesnt get its act together soon, markets may have trouble attaining those record highs. Yeah, tough for the broad market to buck the two biggest weighted companies when they actually last year that was the case. They were the entire index. Today, at least right now the tape is absorbing that. For the moment. Lets get to our closing bell exchange. We have jeff carbone. And our own rick out in chicago. Lets start with you, you know, we have this rally. Weve gotten back up to the 2100 level at the s p 500. We spent a lot of time last year, havent got much momentum past that. Where do you think we are in terms of opportunity, has the rally played out or we have more to go . No, i do think were not und undervalued at this point. We have seen higher valuations in the mid 80s and late 90s. We do have continued room to run. I would expect it to finish somewhere in the Single Digits at year end. Do you agree with that, keith . What do you make of the activity . I tend to focus short term than the end of the year. I cant really comment for what i think for the end of the year. Right now as weve come out of this strong seasonal period for the markets, the s p 500 this week in april is seasonally the strongest week in the Second Quarter going all the way back to 1957. Now were out of that. What we tend to do in the markets is we ebb into june. I see more head winds on the short term nature than i see tail winds. One of the biggest ones we were talking about is the nasdaqs inability to get back to the prebubble high of 5133. It will face stiff overhead resistance at the 1163 line. Tried and failed in 2015 to get above that line. The other thing that gives me pause is it bottomed out with a 12 handle last week. A lot is going to depend next week. Weve got a thousand Companies Reporting earnings, a lot of those are domestically oriented which should have a better season than companies who get more than 50 of their earnings outside the United States. Have to see whats going on and the guidance Going Forward, obviously. Rick, weve been talking a lot about individual company news. Next week we may be focusing on the bank of japan meeting. I was noticing the two year no yield has been creeping higher. Where are we in trying to figure out what the Central Banks may be up to . You nailed it. The bank of japan, this past week, the ecb are huge dynamics for the market to digest. Anybody who doesnt admit the Central Banks and the coordination among them in the second week of february didnt help bring the markets back is not being completely honest. I think these are huge variables. The market recognizes that. The one thing that is interesting, is whether you look at twos fives tens or 30s, theyre all about up 13 basis points on the week. Thats a big week considering where yields are. The 30 year bond clicking off 270. I see that rise, and i see the mitigating effects of the dollar in greece which makes sense but not lately with some of the dynamics overseas. I think the big moves weve seen arent gone. I think theyre on hold a bit. We have supply next week and our first look at First Quarter gdp. I know theres many out there that want to shoot the messenger. Numbers dont mean anything, but they do average out over time. Were looking at a number under 1 . Atlanta thinks it will be closer to. 3 to. 5. I think all these things are in place. And just to mention some of those big moves weve been talking about, wow, soybeans, corn, wheat they got a lot back today. There is a big herd mentality in the markets. I expect the herds will regroup after we get through the issues coming up next week. Were seeing a little bit of strength come back into the dollar. But the commodities have been doing well. Its had a big impact here as its been strong and sharply weaker and may be coming back. How do you invest with all the fluctuation in the dollar, jeff . You know, absolutely. Right now with some of the headwinds, and i do think they have subsided somewhat. Theyre not gone. I agree with rick and your other guest that there are headwinds in the market whether it be upcoming election, fed reserve, we could see a pull back before we move forward. Where im having my clients and where were having our clients invest, we like a wellbalanced portfolio that would contain consumer staples, consumer discretionary, really finding great values in healthcare, energy, given the but in energy we like refiners and mlps in the midstream pipeline area. Okay. We do i think theres going to be some Technology Opportunities as well. We do discuss the earnings coming out, maybe opportunities to get back in and low valuations. Microsoft down 7 today. For example, have to leave it there thank you so much though. We appreciate it. Kicking things off with 45 minutes to go with the session. The dow is up 26 points today. The s p adding a point. The transits are up 74 points but the nasdaq is down 37. 75 . Red flags being raised about the effectiveness of its genetically modified diseases. Our megterrell will have the story next. The game of thrones star is here at the stock exchange. Youre watching cnbc first in business, worldwide. Trugreen presents the yardleys. Hello . oh, pizza is here oh yeah, come on in [claps] woah lose the sneakers pal. Kind of a thing. Spring is on. Start your trugreen lawn plan today. Trugreen. Live life outside. Welcome back. Take a look at the dow transports in a flat market you have the transports up 1 . For the week, Norfolk Southern higher an earnings beat. Union pacific ceo said yesterday he sees more rock and lumber shipments ahead. It seems like the dirty industries are up today and the Clean Tech Industries are having trouble. By the way lets not alarm anybody. Valeant with a ceo shake up. Thats right. Pair go ceo is in tacks to join valeant as the new ceo. Everybody, of course, is wondering who is that going to be. Will they be able to find somebody with a lot of industry experience who can smooth things out. If you look at the way stocks are trading, you can see the uncertainty shifting. People say an experience Industry Leader like joe pappa would smooth things out and give people certainty about the future. But a lot of people are saying they just fended off that bid, arguing they would be better as an independent company. Had a few disappointing quarters. The fact that pappa may leave before straightening that out doesnt make people feel good about the situation. Thats why youre seeing the stocks trading as they are. This was reported by the wall street journal. It will be interesting to see how this proceeds. You know, its been hard to game out what the likelihoods look like. Does this mean that the company is going to meet its new deadline for filing its 10 k . Would a ceo step into the role if he was unsure. A lot of variables to take into account. Thats an important point. The company said it will file its 10 k by april 29th. Presumably you would think mike pearson would be there to sign that 10 k. There is reporting by the the wall street journal that hes having trouble leaving because of a noncompete clause that the board is not letting him out of. Questions about the timing certainly here. Turning to another company thats undergoing a little bit of controversy, intrexon. Maybe the product isnt all that it seems . There was a report out yesterday by a firm called spotlight research which said it is short in intrexon. Especially with this new headline. In that report raising questions whether the valuation of intrexon is too heavily dependent on its prospects for fighting zika through genetically modified mosquitos. We did ask the ceo recently whether there is too much emphasis on zika and its valuation. Is that the right there for investors to be focusing on . I think it actually will be a near term revenue driver, no, i dont think its undergirding our valuation or anything like that. Intrexon is a highly varied company. Were active in health. We have the broadest and deepest portfolio of any company in existence. The Company Actually came out yesterday calling that report false. And misleading. Essentially saying that they believe its the target of a campaign to manipulate trading. And the Company Securities interfere with its Business Operation and destroy the reputation of the company and its chairman and ceo. You are seeing the stock rebounding today. And so, presumably, people maybe dont think this is such a big deal. Its interesting to see what an impact it had yesterday. We know bill miller had told us a while back, that he was involved in intrexon. I think he likened it at the time to an apple in terms of potential here saying what it was doing with apple as we were talking about at the time the actual food product. Not the company but the food product, there have been a lot of people piling into this stock, hoping its going to be the next big thing. And is much broader than what it may or may not do with zika. Thats absolutely right, kelly. Whats interesting about the company but kind of what people may be criticizing it for. It is so many different things. The opportunities seem huge if all of these things potentially work out. But we havent seen a whole lot of data yet. Thats a big question people have. You know, also worth noting, i think more than a third of the shares available for trading in intrexon are short. It remains a controversial story, even outside of this one report. Great point. Thank you very much, meg terrell. Under 40 minutes left to go to the bell. We had the nasdaq leading on the down side. Down 1 . Down and s p 500 still kind of hugging that flatline. Its the nasdaq thats the underperformer on the tech earnings today. Season six, theres the music again. Season six of game of thrones kicks off sunday night. Well find out how much hbo has riding on that series. Well try to key some plot lines out in a moment. Welcome back to the closing bell. Breaking news, a massive recall being announced by Fiat Chrysler. 1. 1 million vehicles worldwide including more than 800,000 here in the u. S. These are vehicles where drivers may have exited the vehicle, thinking that they put the gear shift into park, when in fact the vehicle is not in park. Among the vehicles being recalled, 2012 to 2014 dodge chargers as well as 2014 and 2015 jeep grand cherokees. Chrysler says its aware of 41 incidents where the driver may have exited the vehicle but because the vehicle was not in park it went forward. Chrysler says its unaware of software being incorrect in the vehicle. This speaks to a broader question, as the industry transitioned to a new style of Gear Shifters which include pushing a button or moving it over as opposed to manually shifting it up. People are confused. You have 1. 1 Fiat Chrysler models being recalled. 41 injuries sounds like a lot. For that already to be known and out there is a pretty high number. Well, it depends. I mean, the way these work these are reported into the federal government. At some point, the companies as soon as one is reported, automakers are supposed to immediately start investigating it. At some point you say there is something more than just an isolated case here. While 41 may sound like a lot. Ive seen other cases where youve have several hundred examples of a potential defect. And it does not result in a recall. True. Phil, thank you so much. Keep an eye on it. I actually rented a car recently where it was a dial. The gear shift . Yeah. It was hard to get used to. Bizarre. You dont hear a clunk or anything. Im still getting used to the push button start. Anyway. Hbo has a lot riding on its Popular Series game of thrones. We have the story on hbos big weekend. This is hbos biggest weekend of the year. Rolling out its best content to lure subscribers. Its not just game of thrones, its veep and Silicon Valley. For all the events, hbo is available for a free preview this week. And offering a free trial to hbo app. It is growing to 800 subscribers. Survey monkey say many people are using free trials. Nearly 600,000 new downloads are happening every month. Hbo isnt under pressure to deliver entertainment. Its apps much work without a hitch. Two years ago, the app suffered glitches during the Fourth Season premier of game of thrones and fans were not happy. Mike . All right. I imagine not. Thank you very much. As mentioned season 6 of game of thrones premieres on sunday. Fans are seeking answers. Is snow dead . And will the white walkers make it over the wall. Joining us now on set to discuss the Upcoming Season of game of thrones is the king slayer himself. Thank you, its exciting to be here. Are you going to make any trades whale youre in the building . Sell, just sell. Come on, where is your spirit . Listen the numbers are incredible. 20. 2 Million Viewers last season. Per episode across all platforms. Hbo moved to release it simultaneously. I was thats the big surprise. When you travel around the world, i was in dubai two weeks ago it was the same reaction there from all the people. They were so excited. They love the show. And i maybe my limited mind thought maybe that show wouldnt play so well in that part of the world. It does. And, yeah, the whole team behind the show has been a tremendous job. Im grateful to be along for the ride. You know, you have this world wide appeal. The new episodes air, ten episodes a season, over a relatively short period. Then theres a long wait and buildup. The anticipation to actual new episodes is tremendous. Is it a burden, a great thing, does it build up momentum . No, its great. You know, and then the thing is, its a massive show. It just takes a long time to make it. And i mean trust me, everyone wanted to do more episodes but theres just not enough time to do it. Because you have to shoot it. That has a lot of post work and cgi. I just saw episode one last week at the premier in los angeles. We were sitting in a big screen. It plays like a big movie. And its yeah, it just takes time. The show has launched your career to success. Along the way have you made any money mistakes . Do you want to learn some lessons as learn some lessons as that flourished. Money mistakes . Im not very good with money. But i just find it interesting when you have money in your account suddenly your bank manager becomes your best friend. They just want to spend your money all the time. But, no, im very old fashioned. I like to buy stuff. Like real estate, thats me. Cars . Well. No cars . No cars. We did suliolicit questions m viewers. So whats the most difficult thing sean wants to know about playing jamie . One particular challenge besides i guess only having one arm. Thats the biggest. The physical challenge. When youre on horseback and you cant use your right hand and you have to use your left you have to ride without your hands. Thats trick a e. You actually are on horseback . Yeah, its a bit of a spoiler for next season. Kristin asks what was the hardest scene to film . The hardest scene was on emotional level i guess theres a bathtub scene which was a very long scene we spent all day in the bath. And, you know, it was a great scene. On a physical level there was a scene with where im getting beaten up in the mud and i broke a rib that day. But, i mean, its fun. Fun to break a rib . That wasnt fun, just doing it. Being there. Its great. This one puts you on the spot. Who is the most interesting person to work with on set . Oh, now i could get into trouble here. I think there are different you know, i think Peter Dinklage is funny. But, you know, then again theyre all great. Cant go wrong there. So we know how youre going to answer this, but were going to analyze the tape to see your inflection when we ask you what happened to john snow in fact . Hes dead. Yeah, hes dead. Then again hes a fictional character so was he ever alive . Oh, see. Who are his parents . Well, youre going to watch the show. None of us knows that 100 for certain. You have a huge fan base. The overlap between game of thrones audience and people in these markets shockingly high. I was surprised. Ive done more selfies here than ive been in new york. Appreciate your joining us good luck with the season. Its time for a cnbc news update. Hi, heres whats happening at this hour. At least eight people have been slain at four homes along a rural road in southern ohio. No arrests have been made. Authorities say it is still unclear whether the killer or killers were among the dead. All the victims, though, are believed to be members of the same family. About 350 homes in wharton texas are under an evacuation due to flooding. Crews are out in low lying areas helping those who didnt heed the area as the Colorado River is rising faster than expected. Syrias envoy to peace talks is defending his governments position on humanitarian aid. Damascus has been accused of blocking aid shipments and the un has made appeals for it to do more to help. The Treasury Department releasing the photo of treasury secretary luo holding a portrait of harriet tubman. Well have to wait and see. Its going to be a couple of years, but there you have it. Thats the news update. Back to you. Theres plenty of excitement over here. With our guest who is seated i can only imagine. Im jealous. Maybe well bring him back and do a little stock market commentary. There you go. Ask him whether he cans Silicon Valley real estate has peaked. He said he buys real estate. Thank you. Have a great weekend. With just under 30 minutes left to go in the trading day we have the nasdaq leading to the down side. S p 500 just about flat. Meanwhile, leading trader is going to tell us what hes watching next. Ahead, former european Central Bank President weighs in on the cheap money policy raging between ecb and germany. Stay tuned. Here at the Td Ameritrade trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. The eclass has 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. Less than 25 minutes left in the trading day. Weve got the markets just about a little bit flat here, gordon is here to break it down a little bit. A lot of rotation within the market. What are your watching . First off youre right about the rotational aspect. Up stock, down stock, two to one. The fact of the matter is in my opinion, this is a strong day for us. Weve had a good month. A lot of guys have been looking for a reason to back in some of the tech news, some of the earnings there. Theyve been holding them. As we look into the most important half hour of trading in the day, were seeing, you know, theres strength going into the bell. The question now is, whats going to be running this thing. What are guys running for. One of them is next tuesday. We have the election. Well get some, i think, clarity on that. Republican or democrat side, you dont want uncertainty. These are probably the two candidates that youll have clear favorites. I think those are the ones that wall street is looking for. The other thing weve seen is a couple of banking deals that were wellsubscribed to. Which indicates, that, you know, capital raises were going to be the order of the day. To me thats been the piece thats missing. The risk in the market is on the upside. Holding above some of those levels people are watching, thank you very much. Great stuff, 20 minutes to go here. Keeping an eye on the nasdaq which is the laggard today. Up next, former european Central Bank President. Another german automaker is facing questions about potential diesel emissions strategies. Well have details for you stay tuned. I wouldnt describe european unity as in a crisis but its under strain. Im confident the ties that bind europe together are ultimately much stronger than the forces that are trying to pull them apart. That was president obama earlier today speaking about european unity in a joint News Conference with british Prime Minister david cameron. For more on the looming brexit vote lets bring in former president of the European Central bank. Jean Claude Trichet. Thank you for joining us on whats become a contentious issue. Theres been a lot of push back in britain of people saying to president obama, hey, you know, weve got to figure this one out. But do you think president obama has a point . Yes, of course i think he has a very important point. What he says is obvious. It would be a catastrophe for the uk to leave. It would be also very damaging for the strength of europe and stability of europe. But the main problem, of course, is the uk taking enormous risks, not only economially financially, historically. Because if scotland takes advantage of the situation to restart a process from getting out, you would have to change the union jack. So, again, its very very grave and very serious. Mr. Trichet, what is the feeling there in terms of the pr prospects . It seems the polls are leaning heavily against the idea of brexit. Is there a feeling on the c continent this will not be break of the eu . We always considered on the continent it was unlikely the uk would leave. It was my personal intimate conviction because its so clearly against the interest of the uk itself. On top of that, of course, as you know, on the continent we are recommending the uk to be a member of the european union. We trust that the values that the uk has always defended historically and in the most recent dramatic occasion in europe are very fundamental for europe has a whole. And so the uk is profoundly welcome in the european union. And that, of course, makes all of us to trust that the uk will decide to stay. But, of course, it has decided by the uk people. Well see. I wonder how the terror attacks in brusselss and paris have played into this. A lot of the uk people, perhaps with the events its not so compelling. And financially its not that obvious its in the uks best interest to stay as opposed to leave. On those two points, security and the cost to the uk, why do you think its so clear that staying is in britains interest . Frankly speaking, it seems to me that all the dimension would converge. Of course, security, of course defense and security are part of a strategic issue, which, of course, involves all europeans. It goes without standing from a financial standpoint it would be a catastrophe for the uk to leave. I know of course that you have a solid camp that is very, very favorable to quit. It seems to me that it is something which is probably very parochial as far as i see it. But it is real. And i hope that the discussion will permit a very large majority of the uk people to realize it would be a big mistake. Sir, before we go, what would you say right now in terms of your perspective on current european Monetary Policy . Obviously, with this long term run into negative Interest Rates and more programs of quaintitative easing on the way. Is the ecb on a path to have an effective result on European Growth and inflation . I mean, im sure that you will see that things are going in the right direction in europe. Because, of course, of the decision which have been taken by the governing council. And i have to say that i see it as in the continuity of what has been done by the ecb in my time and now in the time of the president. Very bold decisions have been made constantly since the start of the crisis. I myself have purchased treasuries of greece. Portugal and italy and spain to embark on bold measures on private securities. We have to do other things to supply liquidity on an unlimited basis and fixed rate and so forth and so forth. The problem we have, clearly it seems to me it was said very clearly by the governing council f in t last meeting and press conference is that the governments, the parliaments and private sector have to be on board. The ecb cannot deliver all together without any contribution. And clearly, clearly, all countries have to participate much more actively in the success of europe. I could say the same, by the way, in japan and in some respect perhaps also in the United States of america. Its a real problem for all Central Banks of the advanced economy to have to do extraordinary things without being really helped by governments, parliaments and social partners, if i may. Canada perhaps being the exception, well see if others join that trend. Thank you so much for joining us, giving us your thoughts there on europe. It was a pleasure. Jean Claude Trichet the former president of the ecb. 12 minutes before the bell. Al the dow is up 15. We have the s p 500 almost flat. Nasdaq down 43 points. Its friday, that means wall street veteran david darcy will join us on what could move the markets next week. After the bell, an unbounded republican delegate says even if trump wins 1,237 delegates at the convention he may not win the nomination. Hell explain why coming up. 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. This cit added this other level of clean to it. Plan your never tiring retiring retired tires retirement it just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. Nasdaq composite is the weakest index for the week today. Thanks to weakness in tech. Its tech its the big caps over all the nasdaq 100 is off 2 for the weekend. A lot of the disappointing earnings we got from microsoft. The tone was negative for a lot of folks on the street. Google knows the story as well. Starbucks as well, disappointing. And American Airlines its revenue per unit down 7. 5 year over year. This week, the small caps have shined. Take a look at the russell 2000. Its closing in positive territory. Looks like the dow and s p might be for the week. The russell 2000 is the biggest gainer. We also had an ipo secureworks, this is a spin off from dell. They practice security priced at 14. Well see if it can get back to the earlier markets. Bank of america, the ceo told our john fortt they have expanded their business pace. Financial services to the last six or seven years was about 95 of revenue. We made a conscious effort to move across verticals and across client sizes. We do 37 of the fortune 100 down to small and medium sized business. Tough business cyber security, lots of companies there. And a lot of them are underwater. Back to you. All right thank you very much. Were back on the floor with our independent financial couns counsellor. What are we watching . You want to watch first of all, happy passover. And happy earth day, and we all miss prince. Thats why i wore this tie, purple rain, michael. Right on it. April, basically, april is asia. We want to watch china, specifically credit growth in china. The p is profits. Supposed to be down 8 . Coming in better than theyve lowered the bar and theyve beat the bar. We want to see the ceos and the cios and cfos talk about a better outlook for the rest of this year. Apr. Are is the responsiveness of Central Banks. We not only have the fed two day meeting, the 26th, 27th. The 28th 29th is the bank of japan. And try to weaken that currency. Theyve had a hard time doing. This week, it did weaken somewhat. The market loved that. The fed knows, michael, if you can get the dollar down, if you can get the dollar down, you can get oil prices up. And profits up. Thats very important. You do that when youre getting the yen down . Its a tricky thing. The next thing is inflation and Interest Rates. There we have on the banks have been one of the best performing groups this month. Not only in the u. S. , up 8 . In europe up 8 . Thats a big victory. Finally the l is the lead economic indicators. They were rough this week. Not so good. The markets the economy has been held up by housing. And by the automobile sales. Okay. Retail sales not so good. I would like to give everybody shakespeare eight lines in all of his 37 plays describe himself. But a merrier man within the limit of becoming mirth i never spent at hours talk at all. For every one of the one that catch the earth turns to mirth moving just. Which his fair tongue conceits expository they play true in his tails. So sweet and voluble is his discord. That is from loves labors lost. Tomorrow is his birth and death day. Closing count down coming back. , 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. 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And it keeps my investments fully mobile. Even when im on the move. Ahhh. Just about a minute left in the week. We have the dow hovering above 18,000. Not doing a whole lot. Going to be positive on the week if we close right here. Bob we did get a tech ipo but it fell flat. The important thing is secure works got out. Thats important. We had three successful ipos. Frankly this didnt do very well. 1550 to 1750. Its not closing above 4 t. This is a shot across the bow not just the unicorns out there. But those who are waiting to go public. They have a high opinion of their valuations. Maybe the Public Market doesnt have as high valuations of tech markets. Have you noticed theres a underlying bid to the market . We had a terrible day for microsoft, verizon. Two to one advancing the average stocks up today. Thanks very much. Have a good day today. Ishares by block rock. And up at the nasdaq, lpo financial ringing the bell. Hell be joining us as well. Hi, everybody, welcome to the closing bell. Im kelly evans here on a friday to close out the week on wall street. Were going out with a dow on 22 points on the session today. The s p only about a point higher. The dow regaining the 18,000 mark. 18,004 is the closing level there. The s p a little bit higher still below 2,100 in terms of round numbers anyway. The nasdaq, underperformer by far today down 1 . Gave up 40 points. Weve had a slue of disaappointments. Well talk to an unbounded delegate who says even if donald trump clenches 1237 delegates by the convention, that doesnt mean hes locked down the nomination. Hell explain why coming up. Here on the panel, back with me for the hour, michael and evan. What a week. It turns out the earnings are having a huge impact on the markets. They are. You had the big mega tech stocks gave up a lot of the premium they had built up over the recent months. You had it flowing into old economies, smaller stocks. What was interesting on a mike r mi old media was one of the leading groups in consumer discretionary. Its been the rotation moving under the surface as the overall market maintains the level near 2,100 its probably bullish. Its all good. Its all good. How about your tbt . Thats the only piece by the way, its an important piece of the puzzle. Very important. You know, ive said all along, the tlt, which is the long treasury instrument etf out there. That had a bad week. But it still has to have a lot more worse weeks to come for me to break even compared to the start of the year. You know, you were right on the energies base. Getting involved in that. Everybody hated it. You know, gold. Yeah, right. All of those pieces of the puzzle are working. But the biggest one isnt. Thats, you know, its interesting. The old saying which i never used to believe given ive been buried in the treasury for a few years i may start to believe the bond market is never wrong. If you really believe that i happen to think the bond market is wrong. The japanese and european bond market is wrong. There are negative rates all over the world. I think its closing somewhere round one eight eight. Almost one nine. You know, if the ten year treasury is not well over 2 . By the end of the year, then its hard to see a real roaring bull market this year. Thats because the financials wont go up. Right. It reflects the economy, too. It reflects the economic activity. I think the reflation trade will work this year. And by reflation i mean you have to believe that energy is going to do well, and youre going to be to believe that treasuries are not going to do well. And we saw this year hint the bid to safety is going away a little bit. I dont argue with that as a general principle. I dont see that much conflict between 1. 9 and 0 gdp. If you have negative Interest Rates on debt and youre not getting inflation, the market is not wrong about it. How are you . Hi. How was the bell . Thats a lot of fun. Ive done it before. But havent done it in a while. They do an unbelievable job at the nasdaq. Congratulations again to lpl. We were talking about the distect. Weve had this conversation, we know, you know, over and over again how people feel about, you know, the world is going to be okay or its not. That leaves us with an earnings flow and thats maybe why they can push around the companies so much. I think thats right. I heard what you were saying, you have to be encouraged, even the most ardent bearer, you have to be encouraged by the performance of the market this week. Think about the run weve had. Then you had google starbucks microsoft and a confluence of lousy numbers. And i understand the nasdaq was down. Thats an incredible performance. Given the move weve seen. You can talk about earnings all you want. I will until im blue in the face. The Broader Market is telling a much different story right now. And its very difficult to fight that trend. You know, the big question which weve talked about for a few months now. I dont have the answer. But you really are you probably will see, continue to see a shift from Growth Stocks to value stocks. Thats been value stocks have been a bad place to be for most of the last ten years. What do you mean by value . Everybody defines it really differently. I tend to mean more traditional certain sector specific stocks that trade at lower pes and closer to book value than high growth tech stocks. Youre talking generally about energy stocks, youre talking generally about financials. Youre going to talk generally about low growth consumer stocks. For some reason i dont understand those things will be treated like Growth Stocks lately. Transports today which actually look youre not talking about, really, are the tech stocks and traditional Growth Stocks, high pe stocks. Those stocks have been the place to be whether its biotech or Growth Stocks. Unless you see a shift to value stocks its hard to see the stock market going up on the back of apple or google or linkedin or facebook. Do you agree . The math suggests that. How stretch can you get on the growth side . The key to me is the market has been much more dramatic. Its not just one kind of stock thats working. Its the majority of stocks are participating in the gains weve had this year. Whats interesting is, the majority of stocks are up this year, year to date. But the majority are pretty close to half are still down from the end of 2014. Basically the average stock, its a bad 2015 youre in recovery mode on that. That can keep you going for a little while as long as everyone believes the feds on the sidelines by the way you havent had hardly any junk bond issuance and the market has been strong. The market is healing itself quietly. Its been such a quiet period for people taking companies and listing them. A big drought, the longest weve had since the financial crisis. For tech companies, and you know, we got secure works today and people are kind of looking for something to hang their hats on here. Do you think it would help sentiment if that trickle turned into more of a flow . I heard tom farley on yesterday morning, and he was saying theyre starting to get the phone calls now. Companies are ready to go. So he is encouraged by what hes seeing. If you think about it it makes sense. A lot of the markets have calmed down now. It makes for better landscape. Going back, evan was talking about negative Interest Rates. Im not an economist. I have a hard time rationizing close to 8 trillion in sovereign debt as negative yields. Thats close to 30 of all issuances. Theres something wrong with that. It doesnt mean the stock market is going to implode. Im not sure what it means. But quite frankly, i cant believe it ends well. So i dont know how it manifests itself. Its clearly something you cant discount out of hand. Im not suggesting evan is doing that by the way. No. No. I agree with guy. Before you answer, othouthou you think things are bizarre, wait till june, when the European Central bank will begin buying american debt. We have a test case in japan where i think almost nobody thinks qe has worked or the negative Interest Rates are working there. Directionally i agree with guy. I think, also, in europe, you know, they may think theyre doing everything and everything is working hunky dory. You wont talk to any ceo in europe. You wont to talk to anybody who is a saver in europe. You wont to talk to any investor in europe who thinks the negative Interest Rate is working in europe. I dont know who thinks its working well. It sets up the framework for next week as well. Is it going to be earnings or central bank, if you thought this week was busy wait till you see next weeks calendar. 186 Companies Reporting next week making it the busiest of the season start ing with pioneer natural resources. Things heat up on tuesday. Apple will be in focus, given the rumors about a production slowdown in iphones. Key number to watch there will be iphone sales. Chipotle reports on tuesday after the bell. How much did the noro Virus Outbreak impact sales in the First Quarter . That will be something that analysts will be watching for. Twitter will be one to watch on the monthly ad revenue number. Twitters rival in social media, facebook, reports on wednesday. Mobile advertising and Virtual Reality will be the big focus there. P paypal. First solar reports after the bell on wednesday. Its a mix of social media and biotech. Given the results from google and microsoft will amazon follow suit or surprise to the upside linkedin are the ones to watch on thursday. Friday, two big energy giants, exxon mobil. The best performing quarter. Well look if the fundamental story is improving when these two Companies Report next week. Kelly . Wow. Thank you so much. Were going to get plenty of rest this weekend. Real quick, lets whip around here. What do you think is going to be critical . In terms of what changes the story, it is going to be the fed and the bank of japan. The earnings story weve flipflopped its reacting well, were selling on the news. I actually agree. Its really going to be bond yields and what they do globally not just in the u. S. This year. This week i sensed a little change in the bond market. I dont know whether that will pan out. Weve been there before. We have. We have. Guy . You know, you have to ask yourself what is the right multiple for the s p 500 given the environment that were in globally . Right now 2,100 if you assume 120 in earnings thats 17. 5 multiple. Thats historically on the high end, not ridiculously high but high. It doesnt make sense. I get rates are low. Theres no where else to go. At some point you need the growth thats commiserate with everything else. Well look to see if we get some of that next week. Guy, appreciate your joining us. Thanks. You too. Theyre going to fellow fast money trader, well be breaking down the one level you need to watch in the market next week as Something Else for your calendar at 5 00. Donald trump has called the delegate system rigged. Our next guest says trump could get the 1237 delegates by the convention and skill not gtill e nomination. Volkswagen may not be the only luxury automaker in an emission scandal. Youre watching cnbc first in business, world wide. Welcome back. A key fed official raising eye brows by maxing out Campaign Donations to Hillary Clinton. Yeah, hi. We asked the office about this over at the Federal Reserve board of governors. They said they had no comment on it and referred us to the feds pr people. They had no comment on the news. Here is the news that she has maxed out her Campaign Contributions to Hillary Clinton campaign this year. You see the timeline in november with a 250 for hillary. All the way up to february first. 1,950 in contributions. That maxes her out for the year. Cnbc has done analysis of this. This is the only sitting fed governor dating back to 1990 who has made a Campaign Contribution to a president ial candidate. Other governors have made contributions typically to start parties or lower ranking politicians or political figures. The first time though that we can find anyone in the governorship giving a donation to a president ial campaign. Its raising eye brows because the fed has maintained it doesnt get involved in daily politics. A lot of people are paying attention to this. They see it as brainard hoping for a higher paid job. Theyre wondering if its an erosion of the feds nonpartisan stance. What do you think . I dont think its a big deal. I dont think its a big deal. If you look at the supreme court, right . Supreme court, theyre supposed to be objective. Their political stripes are obvious. Its better for them to be transparent . Personally i would rather somebody be honest. Does anybody think that sonia sote mitt your is going to be prorepublican in her policies . I understand is should they maintain the artifice of independence. Its an artifice. But, maybe guard the fact the fed tries to separate itself from politics and not actively contribute to a campaign. That to me is the argument. 2,700. You can play it both ways. As a gesture what does it get you. If thats the cost of getting favor for an appointment down the road, thats a sad commentary. But then, you know, why not just not bother with it and maintain that appearance to the rest of the world of fairness. It seems clearly, a breach of convention in this case. I was surprised how recent some of the donations were. Thank you, appreciate it. Republican front runner donald trump is trying to extend his delegate lead next week when the race comes to five states. Our next guest is an unbound delegate from north dakota who says even if trump achieves the magic number of 1237 it Means Nothing and may not win him the nomination. Hes on the rnc rules committee. Youre lighting up the website with your remarks. You dont think theres any reason why 1237 should hand trump the nomination . 1237 depends on what youre counting. Most people are referring to delegates won, according to primary results. But the only 1237 that really matters is the is sum of the total of the votes cast by the delegations at the convention in cleveland. Whether or not anybody reaches 1237 will not be known until the first round of balloting in cleveland. Explain your own youre an unbound delegate from north dakota here. You know, Donald Trumps argument is that delegates i guess should reflect the popular vote of the states where its given. And that you shouldnt be able to then turn around and say im a cruz supporter. Is he right about that . Do you think the risk here is whats happening . Well, no, theres a lot of missing about how whether or not the delegates are bound. In north dakota were not bound by anything whatsoever. Weve had no preference vote in the state. All of our delegates are elected by the party at the state convention completely unbound and free to vote their conscious at the national convention. I have a question regarding what you view the duty of a delegate. By that i mean, isnt the duty of a delegate who is going to put somebody who can win the election . Or is it a duty of a delegate to vote whatever his own heart tells him to do . Well, theres a lot of controversy about that. My view is the delegates are individuals, have been since the Republican Party was established. Vin entrusted with the responsibility and duty to make their best judgment in deciding who to nominate as their candidate to run in the general election in the fall. Weve previous years weve used primaries to get us some kind of an indication of the preference of the popular election. But the delegates at the convention choose the nominee, not the voters in the primaries. You know, however it might play out, this time around, do you actually think theres going to be serious attention to this system in general at this point . You actually have a lot of people kind of crying about the logistics of it right now. Is it at risk doing it this way down the road . Absolutely not. Weve had primaries since, you know, whenever they started january or february whatever it was. But im going to propose im going to switch hats here a little bit. Im a member of the rnc rules committee. In cleveland ill be a delegate to the convention. Im going to be a member of the Convention Rules committee. That will deal with who do we nominate. Who gets to be considered for votes at the convention. I propose i announced a year ago i was going to propose an amendment at the Convention Rules committee which im going to deliver on. To nominate and consider every contender to be deemed to be nominated if they have won a single vote in a primary or a caucus. And that will give us eight candidates in the first ballot. Before we let you go, do you know who youre supporting yet . Not telling. Its a secret ballot. Something tells me its not mr. Trump. I dont know what that is. Any comment on that . No, thats pure speculation on your part. Im simply going to vote in secret and keep it that way. Vote your conscious. Thank you for joining ut. We have a news alert on the death of prince, a News Conference was just underway. We have details. Thats right. A News Conference is happening right now on the investigation into princes death. The sheriff jim oleson saying there wont be a complete autopsy report for several weeks. That will happen once the toxicology report is completed. Not a lot of information was disclosed. He did rule out suicide. We have no reason to believe at this point this was a suicide. But, again, this is early on in this investigation. And its continuing to were continuing to investigate. He said there are no signs of trauma on the body and the investigation is ongoing. He stressed repeatedly this investigation is only 29 hours old. There is a lot of work left to do. Kelly, back over to you. All right. Thank you well continue to bring everybody up to date. Volkswagen may soon by joined by another automaker embroiled in an emissions scandal. Uber settling a lawsuit with its drivers for 100 million. Found out if that cleans up one of the major threats to its Business Model later on the closing bell. The one where he gets rejected by the girl. Even stream the one where he creates the girl. With unlimited data, you can stream all the Anthony Michael hall movies you want. I wonder what hes up to these days maybe hes shopping in an at t store . Get unlimited data and your fourth line free when you have at t wireless and directv. Plus, up to 650 in credits to help you switch. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome back. Volkswagens emission scandal has been devastating. Another company may be facing its own emissions problems. We have more. Were talking about the Parent Company of mercedes. This information came out late yesterday. Didnt get a lot of attention because of focus on volkswagen. Here is whats going on when you look at the internal investigation. Thats all it is at this point. It is being conducted at the request of the department of justice. That request by the way came last week and yesterday is when it announced its doing an internal investigation. Back in february there was a lawsuit filed here in the u. S. And the lawyer says mercedes diesel engines have a cheat device. That got a fair amount of attention at the time. After that came out mercedes ceo was emphatic in saying our diesel emissions are honest. These are honest figures we do not have a cheat device. The engines are not rigged. That being said in europe the diesel emissions for some vehicles are being challenged. We got u. S. , we got europe. On top of that youve got a lot of people who are mercedes customers are saying is this going to impact sales at all . Hard to say at this point. Mercedes is coming off record sales here in the u. S. Last year selling almost 400,000 vehicles. When you look at diesel models, its a very small percentage of the overall sales. 1. 7 . We have new news that came out within the last hours that we want to tell you about involving a huge recall from Fiat Chrysler. This recall impacts 1. 1 million vehicles worldwide. More than 800,000 in the u. S. It comes down to this, the cars are put into park by the driver but theyre not actually in park. Theres a confusion going on with the drivers, the vehicles are still driving. 41 incidents, hard to know how severe the injuries are with those people involved in those incidents impacting models from 2012 to 2015. What theyre going to do is put on more defined warnings and shifting within the engine so that it is very clear your vehicle is in park. Well see this more often with the newer shifters were seeing in vehicles. Phil, if we could go back for for a moment. Mitsubishi was involved in this, correct in some of the japanese models . Is the whole premise of clean diesel, you know, what is that about . Was there a nod nod wink wink being carmakers and regulators that well keep telling the public weve got these great fuel standards but Everybody Knows were not meeting them. Were cutting corners in terms of what the end result is. Its starting to sound like some of the scandals that have come out of the sports world where everyone was complicit in selling themselves on basically a fraud. Or somebody in our newsroom today said is the autoindustry like the Banking Industry a few years ago where everybody knew something was stinky and didnt say anything. When it comes to emissions, and mileage, those are selfregulated by the automakers there is a process in place and there are firms, private entities in europe and the United States that will say here are the emissions for your particular vehicle or the mileage for your particular vehicle. What weve seen over the last several years, kelly is that that process is open for either outright fraud which you have with volkswagen or misinterpretation by automakers as well as regulators. That at the end of the day is one of the key problems. By the way, its the same process in the u. S. As it is in europe as it is in asia. We have to go, but i also dont want to advance any conspiracy theories. If your volkswagen, the more its clear that others might have been involved. No doubt about it. The question is what it an arms race in a sense. I remember robert lutz said other manufactures were saying volkswagen claiming this level of emissions we cant figure it out engineering wise. Does it cause other companies to say somebody figured it out. He claimed it put enough pressure on gm they were looking to cut costs. Its world earth day, do you know that . Have you talked about world earth day . Its redundant world earth day. Is that what its called . There is a link between trying to save the environment and then the very practices that end up doing more harm than good. Thank you for bringing us up to speed. Time for a cnbc news update. Heres whats happening at this hour. Iran has finalized a deal with u. S. Companies to sell 32 tons of its heavy water. Thats according to a Senior Iranian official. Al under the landmark nuclear deal, tehran is responsible for reducing its stock of heavy water, which it can sell or dilute. The faa ordering an urgent fix for General Electric engines on up to 150 boeing 787 jets to avoid conditions that could cause an engine failure in icy weather. The agency said it was requiring modifications to prevent the fan blades from rubbing against the engine casing. Victorias secret may be getting out of the swimsuit business. Under its recently revealed restructuring it said it will eliminate certain merchandise categories. Victorias secret did not confirm or deny the report. That is the news update this hour. Guys, back to you. All right. Sue, have a great weekend. Thank you so much. See you monday. Up next, find out why blackrock says some investors care more about being socially responsible than big profits. Both netflix and amazon have huge video libraries. Coming up well break down which service has better content and quality as rated by users. Whats a better bang for your buck. Stay tuned. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. Bring the family. Quite like the human foot. Introducing the 241 horsepower lexus is 200 turbo. With almost twenty percent more base horsepower. Once driven, theres no going back. Weve gotpeptocopter ummy town. When cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder fix stomach trouble fast with pepto. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back. Take a look at how we finished the day at wall street. The dow was up 21. Back above 18,000. S p 500 fractionally higher. Nasdaq down 39 points for the week. The strongest names were american express, united health. Disney. Laggards, microsoft, and apples. We have a news alert on United Airlines. Whats happening . Kelly were talking about ceos putting your money where your mouth is. The ceo of United Airlines is doing that. Yesterday, the airline announced its Quarterly Earnings and the stock was down 10 . Oscar munoz is out today buyi 20,000 shares. That works out to a Million Dollars that hes putting into Company Shares betting on the idea theyre going to go higher from here. Remember, they traded lower today because people are looking at them lowing passenger revenue not only this quarter but maybe perhaps in the third and fourth quarter. He made a big purchase of united shares. Thank you, phil. Were reminded of the jamie diamond move similarly. Jamie did a little more scale. Like 20 times bigger. Okay. In the case of the signaling mechanism, would you read into that that maybe, you know, same kind of clarity from a ceo saying the market got it wrong . Similar, the backdrop being you had an activist situation. Al the ceo wanting to maybe assert he believes in the company. Blackrock ishares group is ringing todays closing bell. Highlighting the companys low carbon footprint. Women and millennials have been their biggest investors. Joining us now is the global head of blackrock. Earth day is every day for you . Exactly. Blackrock has tremendous focus on Sustainable Investing as you said over 200 billion of Current Investments and lots of clients treheft interested. You think of norway and their divestitures which is why the news was interesting this week, getting back into tobacco. Is there an argument at the end of the day for them saying we have to deliver the best returns here . Were seeing clients across the board, we see corporate clients and institutional retail clients, family, offices, all looking to see can we have performance and also have other impact with our dollars. I think the combination of the two is what were seeing the future of investing in many ways. How does black rock define sustaining investing . Everything from excluding sectors like you mentioned with calpers to esg. Looking at environmental and government considerations or looking at a particular outcome like renewable energy. Looking through the lens of metrics thinking about what the outcomes are. Are there total no goal zones like fossil fuels, you wont look, we are entirely responding to interests by investors, you have investors like you mentioned in the nordic countries who have certain categories they dont want to invest in. Or look in california where the insurance regulators are saying no coal. How do you do that in a Cost Effective way . How do you get scale so that people are not picking and choosing individual sectors . Thats whats exciting. For some of the largest Institutional Investors you do something customized. Retail, theres a lot of interest around certain themes like climate for example. Low carbon. Sustainable goals. Its actually you start to see a convergence around certain themes and topics that investors are interested in. You mentioned investors want to see if they can have these other goals. Youve seen some work has said the kinds of companies that tend to qualify for these things might out perform over time. I guess, Counter Research to that. Are you making the case that, in fact, its at route also better Investment Performance . I think we can make sure that with every Investment Strategy theres clear reporting and data and a very clear explanation about what the investment accomplishes. What the Financial Benchmark is what the impact outcome is. Thats why we expect there will be more information about it. Hey, some people would give up a couple Percentage Points if they feel better about it when they go to sleep at night. Thanks a lot. Thanks for having me. The global head of Impact Investing at black rock. Find out whether ubers settlement with drivers will impact the future. What will be the biggest earners next week . Weve got Big Decisions by global Central Banks. Well debate that coming up on the closing bell. The allnew audi a4, with available virtual cockpit. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. Steve, other than making im here atme move stuff,rade trader offices. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Technology moves faster than ever. The allnew audi a4, with apple carplay integration. After much debate and litigation uber is keeping drivers classified as independent contractors. The ride Service Reached a settlement with driverdize in california and massachusetts in a dispute about whether drivers are considered employees. Lets bring in Andrew Hawkins from the verge sporting a nice blazer there, andrew. Do tell, does this put the issue behind uber for the time being . And what does this mean for the work force Going Forward . Its a big win for uber. It allows them to continue to call their drivers independent contractors and not have to treat them as employees. At the same time, i think it might actually mean that uber will end up having to may more than a 100 billion down the road. They said this is how much were willing to pay in order to maintain the status quo. Well probably see other class action lawsuits crop up in other states, other big markets, potentially new york and other places. This could end up costing the company more money down the road. Andrew, it seems, also, to just touch on this broader tension between the people who do the work for are a company like uber and the company itself, and i guess the raising the question of whether this gig economy and the apps that do on demand labor setups have benefitted from a period when you have a lot of idle workers out there. Are they going to have to pay up one way or another because its tougher to find people . I think its going to be up in the air. Theres a lot of people in washington and else where that are saying, now weve reached a threshold where the Gig Economy Companies like uber, handy and task rabbit have reached a point where they have started to redefine the relationship between employers and employees. That means and washington and state legislatures need to make decisions about how theyll be treating these companies and the sort of new paradigm theyve created Going Forward. We see in seattle they passed a bill recently that allows uber drivers to collectively bargain. Theres another bill thats being considered in california. Its a distinct possibility well see other state legislators try to start to catch up and think hard about the new economy. What do you think the ve investors in uber are thinking about things like this and the possibility that maybe the future profits flow are going to be chewed up basically by regulators here in the United States or definitely in places like europe and overseas where theres no way theyre going to get away with having kind of free contractors in france, say, competing with the, you know, paris taxi unions . I think its a really good question. Uber is profitable, probably in the United States. We dont know we havent seen the numbers, they say theyre profitable. Europe and china is a different story all together. The ceo has said that theyre probably spending about a billion dollars a year in china and are not profitable. So i think the investors are rightfully a little bit worried, special about the settlement. It will allow drivers to take challenges and deactivation cases to arbitration at ubers response. That could end up costing uber more money down the line. That might mean that fares have to go up. Your ride may have to get more expensive. Right now its actually, you know, lately ive noticed much cheaper than a taxi in new york. Here is something on the screen, i want to call your attention to crossing the wire. Teamsters are going to try to organize california uber drivers. Just looking through you know, it doesnt go into too much detail here. But it sounds like seeing uber drivers begin a push to affiliate with teamsters. Youll see other unions get on to the issue. They see the large group of workers who arent being represented and potentially exploited and they want to make sure they have their voices heard. At the same time, you know, the settlement that was reached allows for driver associations to form. And uber to treat with these driver associations and to sort of hear their grievances. They wouldnt act as unions per se. They wouldnt have the power to collectively bargain. Its a sign that uber is more willing to listen to their drivers. Thanks for joining us. Taking a look at the impact Going Forward. We should know the verge is part of fox media which has a partnership with nbc universal. Netflix and amazon advertise about their video libraries. Which service has better shows to watch . The great debate is next. Welcome back. The streaming wars between netflix and amazon heating up. The question for investors is which service has more quality offerings its going to matter to which consumers break up. You have to comb through to find these. And figure out what they imply about the companies, you have details on this now. Amazon and netflix each have big library of content. Neither one tells you how many titles are on there, whats the quality of it. We had to go through and look at thousands of these titles. Heres the data. On first glance, youd say amazon has more titles overall 31 ratio. Amazon has more five star rated titles. But you have to go beyond the raw numbers. The amazon titles for the most part, they are shorter. The netflix ones on average are 30 longer. Amazon is less than an hour. Theyre not even movies. A lot of them are less than ten minutes. You get a lot of titles, but you dont get a lot of hours here. If you look at quality content. What do the five star ratings mean . For one thing, a lot of the amazon five star ratings have one or two reviewers. We can put fire stars and this becomes a five star film. The same movie, if it appeared on both platforms, the amazon people are nicer. They give it a half star more. Like uber, everybody gives fours or fives. Its like that with amazon. If youre looking at quantity, amazon wins. But if you look at quality, good quality hours, netflix is the winner. And if youre curious, what is an example of something that has one review of five stars . Thats a nineminute video on amazon. This is a math video we can roll for you. When you want to say where something is on a map, you use coordinates. I dont know so this is a movie thats called theres the coordinates coming up. 4 comma 2. This is a 9 1 2minute video. If you didnt dig into these examples, you might get fooled by what the ratings are. The parallel is a youtube video. The parallel for that is guys saying, youre paying 7. 99 for my streaming service and trying to anchor that, like you said, to netflix. Theres a case to be made were not talking apples to apples. I doubt theres a whole lot of sidebyside Comparison Shopping going on here. Apparently its hard to do. It is hard to do. You always see every single month, you see the articles, whats new on netflix this month, whats new on amazon. They keep going away, and they say, what do you have, they wouldnt comment on anything. They wouldnt want to confirm or deny the numbers. They say, every month its different. That makes it harder to do a comparison because the menu keeps changing. Whats interesting is nobody asked this question of hbo. The same kind of principle. They have a rotating library. Look at the ondemand menu, and its a tiny fraction of they started this as a television. Were used to them as a tv channel that started in our homes and went a different direction. It will be interesting that everybody starts to price this out. These comparisons will become so important. I think youll find a lot of people are like me. Im a consumer of all these services. And you pick or choose depending on the content, not on whos actually delivering it. From an investment point . Theyre both stupidly valued. Theyre both way overvalued. Neither of them make a lot of money. Theyre similar in that regard. But i dont think thats the thing that really matters. What really matters is their ability to source the content at a reasonable price. And thats going to be the challenge for both of them Going Forward. If youre an investor looking at these side by side, you would think amazon has a much larger revenue base, and the ability to spread that content cost over a tremendous business. And their base keeps rolling it in as kind of a feature of another membership service. And gains against netflix, sort of the cream on top. Thats the thing. They put all these things in the library. We think of amazon as the place to buy whatever you want. And watch whatever you want. 20,000 things. But if so many of them are two minutes, they put a lot of trailers and call them movies. Thats good to know. Go online. Mark fahey spent hours digging through thousands of things. The companies dont want you to have this information, but now you can see it there. Thank you so much. Whats more important for the market next week . Big Central Bank Decisions around the world. Stay tuned. Isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurlbrlblrlbr theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Because you cant beat zero heartburn i take prilosec otc each morning for my frequent heartburn ahhh the sweet taste of victory prilosec otc. One pill each morning. 24 hours. Zero heartburn. Trolling for a gig with cant blame you. 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. Another crazy week for earnings next week. It brings us a fed decision, so which is more important. I dont think the fed decision is all that important, but the way the fed finesses the message right here. I think it obviously is not going to do anything in april. They dont want to disturb that market expectation. But june is in play and the market is not there yet. In terms of what we dont yet know, that could be the mover. The earnings matter for the stock, but for the market, not so much. I dont think the earnings will tell us that much more than we already know. I would be looking more at the Central Banks next week. I hate to say that, because i dont believe its really that relevant to actually whats going on in the economy. But it affects psychology. The price of oil has gone up god knows how much in the past couple of months. How much of that is actual supply and demand and how much of it is psychology . Psychology is important in the markets. How much of a crash from 40 to 26 was also psychology . I do think that, again, i dont think the fed is like the big mover. But the market has benefited from being in this window, when weak economic numbers are okay. Earnings that will be back half loaded okay, as long as we dont have to worry about the fed and the dollar racing to the moon. Interesting, there seems to be a consensus that earnings dont matter. You hear it from the law firms, the s. E. C. Might be reviewing this. The investment community, weve heard highprofile people there. Weve got Hillary Clinton calls it quarterly capitalism. Is there a value it seems like every time we have earnings seasons, we have huge movers on the stock. Narratives changing about who is the leader and whos not. Years and years ago when i was in business school, which was decades ago, there was a debate, do we drop quarterly. Its been going on decades and it hasnt gotten us anywhere. I dont think u. S. Capital is ready to rewrite the rules. One of the good things weve seen are Companies Like berkshire or alphabet, companies that historically place less emphasis on quartertoquarter earnings. Thats a good trend. I have to believe they dont really matter in the big scheme of things in a company by company basis. In this kind of environment, its almost as important where Interest Rates are. I think they actually matter. But i think were in this period were not expecting much of them. So therefore, you can overlook the quarterly number this time. Because, again, going back to the sort of the theme of the show here, the central bank seems to be driving things. Happy passover. And you. That does it for closing bell. Fast money begins right now. Fast money for friday, starts right now. Nasdaq market overlooking new york citys times square. Steve and david and karen and guy are here. Tonight on fast, everyone was focused on google and microsoft, there was another tech company that sent a chill down the spines of the investors today. And why people are so worried. The ceo of caterpillar said something on squawk box this morning, has Karen Fineman downright livid. Why you could be