Transcripts For CNBC Closing Bell 20160429

Make their statement before trump gets under way there. Absolutely, bill, heres what happened. They started to gather north of the Silicon Valley region. For those of you unfamiliar with that part of california. The police were put on high alert earlier this morning. Specifically because of what happened in southern california. Costa mesa last night. There was a trump rally, it turned violent. A number of cars that were damaged. Riot police were brought in. Given the fact that mr. Trump is scheduled to speak shortly at that location in burlingame, specifically the Hyatt Regency, the police were put out early at that particular location. They have barricades up. You can see them just past those people we saw walking. A large contingent there are hundreds and hundreds of people at that particular hotel. They pushed against the barricades and then they tore them down and rushed the hotel. At that point, the riot police which were standing to the side moved in and pushed the protesters back. I did not see anyone hurt. They did go back behind the barricades. As they widen out on this live picture, thats a look at the Hyatt Regency and the grounds. But it was fairly well organized at that point when they tore the barricades down. Most people there that i saw had antitrump posters but we understand that there are some pro Trump Supporters as well, and sometimes thats where some issues develop. Thats a live picture so the helicopter is obviously pulling out and that could be the trump motorcade coming. I dont know that. But if the helicopter moved and it seems as though that road is closed, and there are suvs there. So that could be the trump motorcade arriving. So well continue to watch this particular development because as he gets closer to the hotel, well see whether or not we have more altercations with the police. Obviously security is very, very tight. There are a lot of police officers. Theyre all in riot gear. And the protesters have tried and succeeded in tearing down the barricades once that we have seen and have rushed that hotel. All right. Sue, thanks. Lets go to josh lipton whos on the ground there outside the grand hyatt. We can tell you, josh, that depending on how fast and how far away they are, youre moments away from the arrival of trump there. Yeah. It does look like trump was arriving. Remember, he was scheduled to speak here at 3 00 p. M. Eastern. So right behind me at the hyatt in burlingame, california, north of Silicon Valley. Trump has a lot of support in california, among republicans. But there are hundreds of protesters here now and the police also out in full force. They were here very early this morning. Youve got a lot of police in riot gear. It was a few minutes ago it looked like some of the protesters tried to storm their way into that hyatt where trump was speaking. I then saw all of the cops move in in riot gear and push them out. Trump is scheduled to speak any him here. So well bring you those headlines as they do come, guys. All right. Things settling down though for the moment. But it will be very interesting to see what happens depending on where they drop mr. Trump off. Probably in that little plazaary there, near where you are, right . Right near me. So right behind me theres the hyatt. And toward the left there is where protesters listen, theyre trying to figure out where trump is going to be coming in. So they stormed back towards this way a little while ago. They tried to storm the hotel. Now moving up this way. Thats where it looks like trump is coming in. Very good. Thank you, josh. Lets get to the markets. The dow down 128 points. Its been a rough 24 hours and i want to show you the s p 500 we were tooling along here. Middle of the day yesterday we sort of drooped. You see were down 2 . Icahn and a he had a little bit to do that. And apple dropped noticeably. Lets look at the markets today. Be very careful about complacency in the market right now. We dropped 2 in the last 24 hours. 2 to 1 decline and the buyin is heavy. Its the end of the month. Vix is at a one month high. All of the biotech and exploration and production stocks, theyre normally moving on a market moving day. Theyre the ones moving the most today. So were getting a little volatility at the end of the month. I want to point out, on the earnings front, exxon was up throughout the whole morning. It is negative slightly here. But not bad considering the market overall is down. The important thing was their earnings. This is what a big diversified Energy Business will do for you. Theyre big in chemicals. Their chemical business was terrific. It was up 38 . The downstream business is basically gasoline refining, that was strong. They had a loss in the upstream, but not as much as expected. A pretty good report and the question, bill, is whether or not were at trough earnings for some of the Energy Companies. For exxon that may be the case. Back to you. Thank you, bob. Now to amazon stocks on the back of the earnings. Dominic chu looking at the game of thrones style fiefdom. If you look at the game of thrones theme we have got here, it reminded us of the tech landscape. A lot of the major ones are battling for the iron throne. If youre not a game of thrones fan, think of it as a board game like risk. Now lets look at for instance all of our houses here. We have the google, a microsoft, netflix, a facebook and an amazon. Theyre strewn across the tech landscape and theyre all starting to encroach on everyone elses territory. All of the companies do multiple things but we put a couple of them to give you an idea of the landscape that were talking about here. First of all, check it out. Google and microsoft may be soft where you can say netflix and facebook and cloud computing, well netflix and amazon are competing. Not on the other basis but original content as well. And now take a look at another perhaps battle thats developing with regard to some of these. You have an advertising giant like google. Now, its kind of facing off against facebook thats trying to make forays into the online video. Google alphabet owns youtube. So those guys are becoming strange enemies on that front. Then you have another perhaps conflict developing here with microsoft. Big software giant, applications. Going against amazon in terms of cloud computing. Microsoft wants to put it out there as one of the big offerings. Amazon a big player there. Take a look at this one as well. If you look at the overall view of how the guys are interacting with each other, google and microsoft going after each other as well in terms of some of the offerings that they have. All of these Tech Companies are trying to jockey for position and encroaching on everybody elses territory. Just so they can have that supremacy that they want in technology. So it may not be exactly like game of thrones but its certainly playing out where some of the companies are becoming either strange bedfellows or frienemies and trying to battle for supremacy, game of thrones style. I want to know if john snow is alive or not. I wont say anything. I guess you wont. Thank you very much. That was interesting. Two investing companies and carl icahn and Warren Buffett sounding off. You cant have a Federal Reserve give low interest negative Interest Rates without creating tremendous bubbles. I do believe in general that there will be a day of reckoning unless we get fiscal stimulus. Well, there were probably this is the most wild guesses. There were probably 50,000 or more that bought stocks today or 50,000 that sold. I dont know if i would put too much weight in what they did. Lets talk about this market. Closing bell exchange, we have jim lowell and trader stephen guilfoil with us at post 9. Rick santelli joins us from chicago. Two different points of view there from carl icahn and Warren Buffett. Icahn wringing his hands a bit over the future of the market if we dont get fiscal stimulus and if the fed doesnt get off the dime where Warren Buffett is taking things in stride here. Break the tie for us. I dont know. I do think that the you know, the stimulus is the markets opioid of choice, clearly very addicted to wanting more of it. We saw when the bank of japan did not provide more stimulus, that the Global Markets didnt get it. Sold off as a result. I think what we also saw is back in september, the fed moving from the first dealer of stimulus on the block to trying to dose in some rate hikes. Basically, to begin to back away from the massive stimulus efforts that were successful. Initially, we met with a selloff. Then i think as the markets believe more stimulus was coming they definitely rebounded. A false high. Its important for the markets to be able to stand on organic growth, not stimulated growth. Were not there yet. Thats what this last few trading days are telling us. It will be interesting, sarge, to hear what the oracle has to say tomorrow. That Shareholder Meeting for Berkshire Hathaway. Hes someone who can come into the market and try to talk people off the cliff so to speak. He tends to be a positive force. And this being the last day of the month as a trader, were thinking a little window dressing tonight. Maybe a little pop on monday. Guys usually go home flat. Now they have been given a discount, probably will go home with some loans on the table. Because you think well be hearing the good News Comments from Warren Buffett over the weekend . I think there will be some cheerleading. They tend to be positive for the s p 500. Does it matter its a may month about to be kicking off. We hear that old proverb about buy in may it goes away. Its generally more times to sell your portfolio and may that old adage was for the end of may, not the beginning of may. If youre selling because of an old wives tale, youre crazy. The dollar continues lower, energy has been the big winner this month. Gold continues higher. What are your expectations as we head into the month of may . Well, i think what i look at is that the s p 500 is about a half percent positive territory. The dow is about a percent and half. Remember how many times those equity markets and those stock indices knocked on unchanged before we finally broke through to the other side . Well, i think coming down i would suspect those areas will be decent support. I think that whats going on in europe, a little extra growth caught some off guard. Maybe that took some buyers out of the market. But im convinced Warren Buffett aside that the land of negative rates will continue to lose their investors to economies like the u. S. I think that will be a bright spot and i think the drop in Interest Rates after the meetings made sense, but im not sure that that drops going to get a lot of legs, you want to pay close attention to the 175 level in tens. I think carl icahns comments was the timing. As an activist with liquidity all around the globe. Could you find a better time to try to extract companies to invest in their own stock and then pay it out in the form of dividends . Its a wonderful thing. Hes in the perfect business, but the timing of his comments i think are very important. Because i think a lot of that may have run its course. Jim just briefly, are you guys looking, you know, to pick sectors here in other words . When we have been debating whether, you know, debating the merits of technology versus energy versus health care. Are you Going Company specific . What are you doing here . Were clearly looking at health care. Knowing our managers are buying on dips and we think the financials especially u. S. Banks, like they have financial books like in 2008 theyre in much better shape. In Technology Space it absolutely is creating some bargains especially on days of significant selloff. Were long term investors. We think our risk days create long term opportunities for us. All right. We are coming back. Whats the one level you are watching right now, sarge . The panic, i dont think well have a sharp selloff. I want us to get above 1263 on the s p. Oil went above 46 while we were sitting here. You think that supports well, with oil and gold moving thats what investors are focusing on. We have to go at this point. Thank you, all. Have a good weekend. Thanks. About 45 minutes to go in the market here. Keeping an eye on a decline for the dow. The s p is down 16 points. Transportations are down 110. And the nasdaq is down 40. Main Street Investors will sound off and well get their picks to see if apple is worth buying on the latest dips. Up next, well go live back to Silicon Valley where donald trump is on a mission to win the hearts and minds of some voters he may have alienated. Protesters disrupting the rally a few minutes ago. Well bring you the latest. Youre watching cnbc, first in business worldwide. Nothing unleashes power. 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. Well, with the markets trying to come off the days lows, lets show you a couple of other movers at this hour. Seagate tumbling on the earnings miss. The data storage maker issued disappointing guidance for the Current Quarter and flat gross margin growth as well. That was during the Conference Call with analysts today. Also on the flip side we had monster beverage one of the biggest gainers in the s p today. The Energy Drink Maker reporting better than expected earnings thanks to Distribution Deal with cocacola thats helping to boost sales. Monster announced a 2 billion Stock Buy Back Program via a modified dutch auction tender offer. Now california is playing a key role in picking the republican partys president ial nominee. Our josh lipton is out at the california Gop Convention where frontrunner donald trump just arrived and maybe jumped a fence amid a number of protesters . Whats going on . Yeah. Absolutely. Donald trump were hearing did just arrive. Hes going to be speaking at this hyatt right behind me here. Were in burlingame, california, which is just north of Silicon Valley. Listen, we know trump has a lot of support among California Republicans. Hes leading senator ted cruz by more than 17 percentage points. But there are hundreds and hundreds of protesters here as well. I can tell you emotions are running high. Earlier today, we saw a trump supporter going at it with some trump protesters. A scuffle breaking out. Luckily it did not look like anybody got hurt there. And then just a few minutes ago it did look like a group of protesters tried to barge their way into the hyatt where trump is scheduled to speak. You had police then move in in riot gear and push them back. I did catch up with both sides here, i spoke with trump fans and critics, trying to get their sides. Take a listen to what they had to say. We have already seen him turn the establishment upside down and stand up for the american people. He has the strength and the determination to make this country great again. We cant sit back and allow all the violence and all of the just the silly things hes saying take place. I like his business leadership. I think our country needs that. You know theres no perfect candidate but hes certainly better than what we have. We dont have a friend in hillary clinton, however, donald trump is definitely the worst of two evils. Now, as we said trump did just arrive here a few moments ago. Hes going to speak at the hyatt and well bring you guys those headlines as soon as they come. Back to you. Josh, by the way its interesting because youre talking to a lot of the public there. People who are coming in for rally. California like any state, the mood in the city is very different than the mood across much of the interior. Im just interested to know whether the you know, kind of the aggressive rhetoric out of Silicon Valley from Mark Andreessen and the other guy, does that resonate with people or does that make them feel more you know, supportive of what they like about trump . Well, listen, i mean, youre right to point that out. Donald trump has a lot of support among republicans in california. He has that double digit lead over senator cruz. Among Silicon Valley elites youre right to highlight that. We saw Mark Zuckerberg of course suggest that he was a he was coming out in opposition of trump and that decision to build that wall between us and mexico. And its not just ceos of course. You have had a number of right leaning vcs come out trump. Mark andreessen suggested he would vote for clinton. You have keith he boyd coming out, so theres that divide, kelly, youre right to highlight it. Josh, thank you. Keep us updated there out of burlingame, california. Lets take a break here. Were about 40 minutes to the close, but the dow is down 103 points as we start to close out the month of april. And then we got into may. Coming up, Retail Investors are telling us whether this pull back is scaring them out of the market. Also, Amc Entertainment Ceo Adam Aron is telling us how the block busters will impact the bottom line and if they have any acquisitions coming. Well ask. Yes, we will this time. Coming up. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Welcome back. Weve got about 35 minutes left in the trading session here with the dow down about 101 points. Focusing on the transportation stocks, we were just talking about that with sarge guilfoil. He was saying maybe might be time to buy some railroads right now, but the airlines we have been focused on those today. The transports are down 114 points right now as oil tries come back. United continental, watching all of those for you. But joining us right now is supermodel christy turlington. Shes representing your organization, every mother counts. Im impressed youre Still Standing because you did did the boston marathon. Yes, over a week ago. Tell us about the organization though. You have been doing this for a number of years now. The orange rose yes. The orange rose is new, actually. Its a new symbol for Maternal Health were introducing this year. I started the foundation in 2010. And basically, were a campaign thats trying to make pregnancy and childbirth safer for women ever everywhere. How do you do that . Transportation is one of the ways to do it. Some women live so far away from Maternity Care so i try to make it easier to have access to the services and care during, throughout and after pregnancy. So many different aspects you could focus on in that whole process. That would be one of them, i imagine. Yes, education is another. Were training lots of health care providers. Community Health Workers and even obstetricians. Then were trying to provide basic supplies. Supplies that we would take for granted here. Cotton, just hygienic, clean places for people to deliver their children. We take that for granted. Some of those basic elements of the whole birth process. We throw them all away in the hospital. Theres so much products that go to waste because we dont necessarily need all of the things that are in the hospital room. But there are people that dont even have access to a bar of soap let alone a clean you know, instrument. So youre a 5013 c. How do people make donations . So every woman counts is our website. If youre late to the table, you can find us there. They all benefit the programs around the world. Were working here in the u. S. , in new york. In florida, and haiti. Uganda, and in tanzania, india and bangladesh. Looking for any stock tips down here . I just hope that you guys finish the day and still have smiles on your faces. We always do. Good. Good to see you. Thanks for joining us. Christy turlington. Have i mentioned i love my job . Joining us here enjoy. Thank you from all of us. Keeping an eye on the markets though. We are under pressure with some frowns, the dow is down as we head into the close. A leading trader will tell us what hes watching. When we come back on closing bell. 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. You ppremium 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. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back to closing bell. Im sue herera. Heres whats happening at this hour. Well show you live pictures from burlingame, california, at the Republican California Convention there where protesters are on site and mr. Trump is expected to speak. Hes arrived at the convention, but he had to go through the back door after protesters blocked the entrance. Police in riot gear are on the scene. Were continuing to monitor the situation. Some protesters have gotten through the barricades and they are literally at the front door of the Hyatt Regency there. Meantime, in washington, d. C. , the white house announcing president obama will use the power of his office to push for adoption of socalled Smart Gun Technology that would eventually limit the use of the firearm to the owner. He is offering grants to spur the technology. Nissan recalling 3 million vehicles over faulty air bags. It includes the pathfinder, the altima and the maxima. On a lighter note its game on. The white house has thrown down the gauntlet to the house of windsor for the upcoming Invictus Games. See what was posted today on instagram. Hey, prince harry, remember when you told us to bring it it a the Invictus Games . Careful what you wish for. Oh, really . Please. Boom. The Invictus Games celebrate the athleticism of injured and sick soldiers and veterans around the world and prince harry champions that. Boom. Thats the news update this hour. Back to you two. I love it. The queen is the hippest 90yearold out there. She really is. Thank you, sue. Look at this. We are coming back as we head into the last half hour of trade. The dow now down just 70 points. It was down well over 100 points and the nasdaq, the laggard today, is down 34 points. I want to tell you about valeant pharmaceuticals, its falling big time. The struggling drug maker finally releasing its annual report to meet a key deadline with the s. E. C. For creditors. But the report unveiled among other issues that North Carolina is investigating valeants marketing and pricing practices and separately valeant said that seven current Board Members would not be standing for reelection during its june 14th Shareholder Meeting. By the way, activist investor bill ackman will remain on the board. He will be a special guest host on the Halftime Report monday at noon eastern. The action starts so be sure to tune in for the full hour. Well hear from bill ackman on that among other major issues. I mean, he is very much hands on right now. Trying to revive the future of valeant. It will be so much to look forward to on monday. Well, the market is off the lows as we head into the close the final trading day of the month. Lets check in with main Street Investors. With us now david meyers, creator of a la carte charts. Guys, great to see you both again. Damall, slippery markets the last couple of days, big misses in tech. What are you buying and holding here . Im holding on alibaba right now. I feel theyll get stronger later on down into the holiday season. And with ali pay coming it will basically be against ebay and paypal. But im i feel strongly about barrett gold right now. They hit a 52 week high today. Which is great for us. And the price that the shares are trading at is good for investors like me that dont have a lot of cash on hand. Right. So this is really, really i feel strongly about this stock right there. You ought to be feeling good with that 9. 7 point game and the price of gold is going higher as well. David, i know among other things youre a short term trader. You have been net short this market here. So we have had a couple of big down days. What are you doing right now . Well, im actually buying volatility because i think this trend continues, at least in the medium term. Were looking we had a heck of a run since january where we were crazy oversold at that time. I think were getting to the point that were overbought again. And the market needs to get its legs underneath itself before it wants to go higher. What does that mean in terms of how youre specifically playing it, david . Well, theres a couple of ways. Im buying the vix. I like that as an asset class and other asset class . Yeah. Yeah. You can buy it through the etfs. That could be instead of cash you could be buying the vix and getting ready for volatility such as today. What was the other thing were doing . Also i think the dollar is about to bottom out. At least again in the short term. We have had a heck of a run. Were pricing in the fact that the feds not going to move at all. I have a feeling that well get a surprise and get two bumps this year. Even if its just talk, its enough to drive the dollar higher. Is there anything you have sold out of lately . Well, i sold out of valeant becauses of what going on with the company and i kept watch of when they were whats the word im looking for . Going through their problems with their shareholders and they investigations that were going on. So i bought them in the middle of last year, but around january i dropped them before they were bought out. Well, that was smart. A lot of smart Money Managers wish they had done the same thing. You dont want to get back in along with bill miller and those who feel like there can be some order out of this chaos . Not right not any time soon, no. I want to make sure they reshuffle their board. Get their members together and get the company back out of investigations and back on the right track. All right. John, good to see you both. Tight on time today with all the breaking news. Thank you both for your thoughts on this market. We appreciate it. Yeah. Well send it over to seema mody for a market flash. I want to bring your attention to hall yard, its tumbling on a 60 minutes preview that saying they knowingly sold defective gowns to u. S. Health care workers battling ebola. The company is allegedly accused of supplying faulty defective equipment to hospitals. This is the preview of 60 minutes, the full story on sunday. You are looking at shares down more than 9 . Well be reaching out the the company shortly. Well let you know if we get a response. For now, back to you. Yeah, any time the attention of 60 minutes gets drawn to the company, theyre in for a challenge. Lumber liquidators. I wont draw conclusions on halyard at this point. Well see what else they have to say. Thats more scrutiny. The other thing too, when the scrutiny comes. All right, about 20 minutes left. Sarge guilfoil said it would be like this. Maybe some traders are taking a position into the weekend ahead of the an ideal shareholders meeting. The dow is down 64 points. Pretty much catching in half the declines we saw earlier. The nasdaq is lagging though. The major averages this week well go live to that exchange coming up. Up next, Amc Entertainment ceo gives us his take on the increasing role of china in the movie biz and how thats affecting content and distribution. S touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing welcome back. The dow down 60 points or so. But again, it has kind of picked up off its lows here in the last hour of trade. Now, expedia one of the bright spots. The travel services web Service Operator is reporting a profit than a loss. The shares are up better than 8 and revenue getting a boost from the recent rental business. Amc entertainment are falling today as the Company Reports First Quarter Earnings Results this morning. Did that beat analyst expectations for earnings coming in at 29 cents per share. But the top line fell short of expectations, despite record First Quarter revenue in both admissions and the ever popular concession sales. Joining us now is adam aron, the ceo of amc. Thank you for joining us. Its my pleasure to be with you, of course. As always. Theres a number of Different Things going on in your industry. Any major deals you want to announce while youre with us . Anything youre hours away, any major, you know, landmark things going on here . Because were all ears. Well, we were close to announcing our acquisition of Carmike Cinemas on your program. Yes . Im giving you a hard time. But it got delayed by two hours and we missed you. But what i will say is the news of day is amc announced earnings this morning for the First Quarter and we not only had record earnings but we had record everything. Just every metric that you could look at was impressive. Our revenues were up 17 . Our ebitda was up 27 . Our eps was up 383 . We beat analysts consensus estimates on ebitda by 11 . And eps by 45 . This was a great quarter for us. Id love to have quarter like this for the next 90 years. Why do you think the stock is down today . You know, sometimes people look at the trees and not the forest. There has been some speculation about what movies will open in may and june and obviously we take a much longer term view of our company. When you start with the Summer Movies that traditionally open in july, all the way through the end of 2018. Were looking at a gang buster slate of movies. We think the prospects for amc are quite bright. Lets look at the forest. How concerned are you down the road, im looking well beyond the summer movie season from all of the competition that a theater chain gets these days from the Home Entertainment center, the downloading, you know, the home box office. Downloading that people can do these days. Some of the competitors that want to release to the home video at the same time. What is the model with the competition out there . I think competition is a good thing because it keeps the companies on their toes. In our case, we are responding with the strategy to make the theatrical movie going experience better and better and better. Really wonderful as whatever adjective i can come up with, were investing 1 billion in our theaters over the next three years. To upgrade the movie going experience. Big screens, better sound. Better food and beverage. Reclining seats. Alcoholic bars in the lobbies. Were making a lot of progress to make a night out as a wonderful thing. Thats how well succeed. Id love to be able to text while watching a movie. I dont know about. Well, listen, if its important enough to to people in general, to feel like they dont have to make a choice between being on my phone, responding to a text and watching a movie, i can understand. Do you think that actually despite the outrage that followed your mentioning of possibly allowing people to do this, it still could be something you pursue longer term . Well, you know i floated that trial balloon and in 36 hours thanks to social media, social media gives us all the opportunity to interact directly with our customers. We immediately heard what our customers thought of that. So that idea is dead and buried. [ laughter ] lesson learned, i guess. Adam, thanks for being with us. I appreciate it very much. Our pleasure. Adam aron, ceo of Amc Entertainment. We could be positive by the end of the day here. The dow is only down 22 points. Barely more than 0. 1 . But its the outperformer. So the s p 500 is giving up a third of a point today. The nasdaq despite amazons results there is now down half a percent. A leading Portfolio Manager will explain why gilead which is why 9 today is on his buy list. Thats coming up. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. A little less than ten minutes left in the trading session. The nasdaq has been the laggard this week. We go down to the market site with bertha coombs. A lot of disappointing numbers from the big Tech Companies. As a result, we have the nasdaq down to the worst for the week, worst for the month. Seven day in the a row that we have seen the nasdaq slide not coincidentally when you take a look, apple has been down for each of the seven days. Apple ending below 100. Back below a number of its moving averages, back in bear market territory. After posting those disappointing numbers. Really helping to lead to the overall disappointing feeling with tech with a lot of bad reports this week. The one thing bucking the trend, well, lets do the david dars acronym, the best gainers were facebook and amazon killing it today. And monster all up on its earnings. And expedia as well. But really as far as those f. A. N. G. Numbers its f. A. Thats doing the heavy lifting on the nasdaq these days. Back to now. Well done. See you later. Its been a big week for the dividend players. Johnson johnson, apple, gilead which is down sharply we pointed that out. They all raised their dividend this week. Mark spellman from alpine fund joins us now. You like gilead, even before the selloff, right . Yeah. I think today, i think it will be one of the most attractive stocks right now. This is company its hepatitis c franchise was weak. The stock is going its selling around seven times earnings, 2 yield. But you have to put up with some volatility in the meantime. I think so. An excellent entry point. They generated 4 billion in Free Cash Flow this quarter. Youre predicating that on nothing changing from this company at this point, or do you think they need to do a big, transformative deal . I think thats the bonus here. I think based on the Current Business generating 4 billion in cash. I think the scripts and the pricing is going to calm down. Pricing press sur going to calm down. I think with 21 billion in cash and zero debt, they could make another transformative yield. I think that would be the cherry on the sundae here. Where else are you looking for dividends right now . We like cvs if you want to stay calmer. 16 times earnings. They made an acquisition of targets pharmacy store, so every target will have a cvs in it. We think thats a solid, top line story. Are you word one of the things that people rose, gilead and also to cvs is have we reached an Inflection Point where the past like a supermarket, right . You increase price, everybody benefits and now everyone can be hurt from that . I think gilead is special in a sense. Their drug cures the disease. But they have to pay a lot to make sure sure. The list price, its about 60,000 i think is what it is. Everyone the Veterans Administration is nowsying patients who is now saying patients who have hcd should get treated with it. Its a lot of money up front, but 98 of the people who take the drug no longer have the disease afterwards. Thats what we like to see in the medical system. Thats for sure. Good to see you. Mark spellman from the alpine fund. Well come back with the closing countdown for the month as we head into may. How quickly it goes. After the bell, Bernie Sanders has made no secret about his disdain for wall street. And a supporter will explain why hes casting his vote for him. Youre watching cnbc. 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. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. 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. All right. We are just inside three minutes as we head to the close, wrapping up the month of april. Bob ba is any joining me today. Well see, it was i guess well be slightly lower for the dow industrial average for the month overall. Slightly. Down half a percent or thereabouts. Down a bit today. Ill tell you what, sarge guilfoil nailed this one. He said wed see a big come back as market triggers get ready for the weekend of the Berkshire Hathaway Shareholder Meeting. Lets see what oil did this month. It was a come back month for that as well. Up 19 to 45. 45 was a number that a lot of Oil Companies were looking for. As a result, energy was big Market Leader here, up about 8 . Energy stocks. So i think oil up and the dow down, two funny you should mention that. For the month of april, down 1. 7 . As we head down to 93 and the question is maybe some say were getting open into the extremes. What the move the market forward, people ask me, and the most obvious one is continued dollar weakness thats going to help all of the multinationals. There was even some comments about that. That the dollar weakness was going to be a nice tail wind for some of the multinationals. Well see if that keeps up. Oil if it bottoms out, i think the biggest problem in the market is a sense of complacency. Well talk about that on the other side. The market is not cheap. It is fully valued. In some pockets theres slight overvaluation. I think you can say maybe we wont have the same drop that we had in january and february. The recession concern is not there. China falling apart, concerns maybe not there. How do you push the market up when the valuation i think this is going to be the problems well grapple with in may. Were past the Halfway Point for earnings. They have met the lowered expectations. Amazon and facebook notwithstanding. But otherwise its been a pretty dismal reporting ceasen. If you look though at the other new tech, like amazon, expedia did fairly well. I tend to look at it slightly differently. The question is, Second Quarter their guidance is it enough to break the four quarters of negative Earnings Growth that we have had . Right now the jury is still out. But the commentary is less bad. I think thats important than in the fourth quarter. Bob, thank you. Have a good weekend. Going out down 60 point, well off the low for the day. But slight decline for the month of april. Start off may on monday. Christy turlington and her every mother counts foundation, ringing the bell. Lets get to the second hour of closing bell. Have a good weekend, kelly. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. Heres how were finishing up the day and the week on wall street. The dow going out with a cle decline of 53 points. And the month drawing to a close, the s p down about 10 points and largely flat for april. The nasdaq the underperforming, amazon had the results, that helped the nasdaq futures this morning. To stay in the green. But not true as we moved through the session today. Twothirds of a percent of a selloff, closing down 30 points. Coming up, well hear from a banker for Bernie Sanders. Why hes supporting the candidate who has been so vocal against the street. First, lets introduce todays panel. We have contributor evan newmark here. Kate kelly. And with us also, fast money trader guy adami. Any parting thoughts on april . Ill give you a parting thought. If the network was an nfl draft, you would be my first pick, being on your show, being with evan and kate who is back. Congratulations, kate. Yes, im back. Im thrilled. Tell Bill Griffeth who is running away that i say hi. Life is sweet. Thank you. We love having you. April, thoughts, dave, thoughts . Energy move, i think it caught a lot of people offsides. I think the dollar had something to do wit. But maybe fundamentals arent as dire as i thought. I think thats number one. Number two, i dont think theres any way to dispute that were not only in an earnings recession, but were in the revenue recession. As you see by a number of different earnings, yes, some one off stories. Facebook stands out. But the fact is that earnings and revenue are disappointing. I think the bond market stays resilient. If you want to be bullish in the market now, evan would agree with this, you have to justify being long. The s p 500 which traded close to 18 times forward earnings and in an environment that i dont think justifies it. Hows that for your answer . You want to speak i agree with guy. I love his positive words about you, kelly. Do you think thats the Warren Buffett effect . Well hear from him all day tomorrow. No. I think really the s p 500 has traded for almost 20 months at plus or minus 2,000. I mean were two years come august and what we have seen is theres been a lot of movement in that s p 500. Apple which is the largest component of the s p 500, its down more than 30 from its highs. Yet, the s p 500 is still more or less where it was. I think for the market to go higher you need to see Interest Rates go higher. You need to see financials go higher. I think its very i think its great. Ill do another small victory lap, ill the a smaller i should do a bigger victory lap on the precious metals. Thats wonderful. Okay. I need to take my victory laps when i can get them. Youre allowed. Kate . The s p is in a remarkable spot here. I think a lot of people at the beginning of the year said the rally was over, but instead were in the second strongest bull run in recent money. There was some interesting stats out this week suggesting if we had another update thursday wed be setting another record. It didnt happen. But were close, right . At the same time, i think people have been expecting to see a momentum trade that didnt materialize. They got hurt. If they were moved in the wrong direction there. I think thats been an issue for some hedge funds. I wanted to to pick up guys point on energy. Even though it was impressive month for energy as bill bill was just telling with us the rumors, im clearly newly back to the job, its something you have to wonder about when saudi is adding to the oil output, you have tankers off shore that are storing oil on the floating basis. You have iranian crude coming on line, can we sustain the prices at the moment until thats a real washout . We have no idea. The oil market isnt something we pretend to understand. It works on psychology. Theres underlying supply and demand but a lot of psychology is involved. And my call last year on exxon was really just a notion that, you know what . Exxon in the high 60s looked like a good relative, you know, value trade. I have no more insight than that. Lets mention our get more stats here from our bob on how we finished the day and the week here. Yes, we had a nice turn around in the last hour. In fact, that turn around put the s p 500 into positive territory for the month. Lets look at the major sectors. The real winner was the small cap. Russell 2000, up 1. 7 . The s p turned positive. And transport still couldnt manage the gain. Take a look at the sectors. The big macro stories played out. Oil was up, and theres your Market Leader and banks did very well despite the flat interest margins. That was enough to move them up and materials benefited from the weak dollar. Remember Consumer Staples was a big one earlier in the year. Theres the reason we didnt get much oomph. In terms of what will happen for may, the enemies oh may rally, sell in may and go away. Its a silly idea to go out of the market for six months but it has psychology. We dropped 2 on almost nothing. A lot of air. Volatility went up on that. Be careful about being complacent. The Biggest Issue in my opinion, the markets are fully valued. You guys talked about it. 17 1 2 times earnings, ge and 3m all at 19, 20 times earnings. I think theres a floor under the market perhaps. Less volatility. The question is what could make it go higher and definitely valuations is going to be a major problem in may. Bob, whats interesting just looking at your sector breakdown there, i was astonished to see energy and the banks. We had disappointing bank results especially when it comes to the allimportant factor of the trading revenue, right, which was not great. Thats something that can really juice profitability in better times. What do you make of that . Well, on trading revenues remember youre talking about the big, big banks that are involved in that. Youre talking about a half a dozen major banks. All the regional banks dont have trading issues by and large. They make their money by net interest margins and they make their money by charging fees. Its true that the net interest margins were kind of flat. But there was modest loan growth. Enough to encourage people to get into banks. So there was a relative valuation play going on there. Guy, what would you say about the financials here . Believe in the financials, youre putting it solely on the fact that you think valuation is cheap. I would argue absolutely thats 100 right. My pushback would be how are these guys and gals going to make money in the environment that we find ourselves in . We have the department of justice coming on down on the end of things and it will and i still think the back end of the curve is going down. You have a giant bullseye on a lot of their backs in terms of the political arena right now. I think the landscape for them is extraordinarily difficult. I get that that theyre cheap valuation wise. I know you say 53 1 2 when jamie dimon, good for him, hes a stud, and well come back and talk about banks now facing the head winds and their stocks facing the pressures. Bob, were you trying to get back in . No, look i agree with the general idea that there is a relative valuation play. You have to admit, guy. Come on most of the banks owe. 7 times book value overall. I think the wrong growth is modest and no growth in the net interest margins at all. With no increase in any Interest Rates the banks will hit a wall very, very quickly. Im going to what do you think . In general im not super optimistic. I think the market certainly the u. S. Market is very fully valued. The one point i would bring is that you will often find sources of change where you dont expect them. I noticed today for the first time in like forever European Growth numbers were higher and better than people were expecting. Nobody saw the uptick in oil prices. Europe is basically dead money for a few years. Japan, forget about. Maybe we see something positive that comes out of the weakening dollar and growth in europe cra that could drive growth in interest worldwide. Im not super optimistic about europe, but all i would say your expectations are low enough youll get the positives. Price of oil it will never be above 40 ever again. Its at 45 or 46 right now. The Energy Companies the world changes quickly. It does. Sometimes its not where you expect it. We have a news alert from the Treasury Department. Amin . Yeah. A new report on the Foreign Exchange practices of major u. S. Trading partners. The news here such as it is, is that the treasury is not saying that any Major Trading partner of the United States is manipulating the currency visavis the u. S. Dollar. But under a new law established last year, they are creating a new what theyre calling monitor list. That monitoring list is going to include they say five countries, china, japan, korea, south korea they mean, taiwan and germany. They say those countries met the criteria two out of three criteria that they have established for enhanced analysis. What this all boils down to is that those countries are not going to be getting enhanced analysis by the Treasury Department because they didnt meet all three. Nonetheless theyre singled out in the treasury report. Think of this, guys, as a stern wag of the finger from the Treasury Department to those countries and maybe it will raise eyebrows they have been added to this report. No major consequences. Which two country was that just now . So theyre adding china, japan, korea, taiwan and germany to a monitoring list. They say those countries have met two out of three criteria the they would need to meet in order to be subjected to what theyre calling enhanced analysis. A whole process that they would go into if they met the criteria. They didnt meet all three, so therefore they wont get the enhanced analysis. But the mere fact their mentioned here might raise an eyebrow or two. As i say, this is not the intense breaking news here from the Treasury Department about the currency practices of countries around the world. But eamon and kelly, theyre monitoring which is a fuzzy term. I think its a little bit interesting, im curioious on yr thought on this. This is a big thing of donald trump, that the Obama Administration hasnt stood up to china. He wrote a wall street editorial about this. Beating the drum on this. Is this something he can brag about or not really . I think this is something you might hear from donald trump out on the campaign trail. Youre exactly right to put this in the political context because thats what this is ultimately. Its a negotiation between countries. Its subject to Political Forces here inside the United States. It is absolutely an issue out on the campaign trail. You will hear candidates talk about it. Its always easier for candidates to talk about labelling other countries as currency manipulators than for the people running the government to do that because it comes with real world consequences and theres the potential of starting off a trade war which you dont want to do. Those people in power are less likely to do it than those out on the campaign trail. A quick thought would be great. Yeah. Im not killing the messenger here, i love eamon, but the hypocrisy of this on a friday is mind boggling. Listen, i love america, i wave the flag, but the biggest currency manipulators on the face of the earth is the United States with the fed policies that we put forth. To say anything but that is complete lunacy. Were the currency manipulators. Does everybody else do it . Absolutely 100 , but we have to look ourselves in the old mirror, sister, because we do it worse than anybody else. I dont know nobody is being labeled as a currency manipulator here in this report. No trading partner met the standard of manipulating the rate of exchange between the currency and the United States dollar. So to your point, the u. S. Is not overtly pointing the finger here. Theyre just giving it a subtle wag. Well, we have a mirror too, guy. Youre right its important. Eamon, thank you for joining us. And guy, really appreciate it. Have fun today. I had fun. We did too. Save your energy. Save your energy. Theres more coming up at 5 00. Fast money is talking to a top technician making a major call on gold. Now valeant shares are under pressure after delaying the results and shares closed down more than 5 . Well have the latest coming up. Plus, Bernie Sanders has made breaking up the banks a cornerstone of his president ial candidacy. Up next well hear from one banker who is backing bernie. Youre watching cnbc, first in business worldwide. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. 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Well, kelly, donald trump in this hotel right behind me here in burlingame, california. Started off with a prayer, with the pledge of allegiance. I can tell you ivanka trump his daughter is also inside. Heres how trump began, heres what he had to say to his supporters. Take a listen. That was not the easiest entrance i have ever made. [ laughter ] my wife called, she said there are helicopters following you and we did then we went under a fence and through a fence and oh, boy. I felt like i was crossing the border, actually. You know . Its true. [ laughter ] i was crossing the border. But i got here. Now, we can tell you inside also you have top gop officials from the state of california. Remember, trump has a big lead here over senator ted cruz. He does not, however, whats interesting have the support of a lot of the men and women i cover every day. He doesnt have the support of Mark Zuckerberg or Mark Andreessen. Of course, trump said he couldnt care less if he has the support of tech elite. Protesters were here this morning. Their numbers only drew stronger as the day went on. There were hundreds and hundreds of protesters here. I did see a scuffle between protesters and Trump Supporters. Fortunately it didnt look like anybody got hurt. It did look like protesters had tried to move in to the hotel behind me, into this hyatt. At that point you did see a lot of police in riot gear move in and push them back. Now, in this hotel behind me youll have senator ted cruz and governor kasich. Well keep listening and bring you more headlines as mr. Trump speaks. Josh that, thank you. Democratic president ial candidate Bernie Sanders well known for his critical view of wall street and Corporate America and the banks. You cant be for wall street and for the working people of this country. When wall street and the fossil fuel industry and the Drug Companies are able to pour huge amounts of money into the political process. That is not democracy. The fact that major bank after major bank has reached multibillion dollar settlements with the United States government, when we have a weak regulatory system tells me that not only did we have to bail them out once. If we dont start breaking them up, we have to bail them out again. All right. So why would a banker support bernie . Joining us now is a cofounder of Washington Square Capital Markets who supports bernie and he let the world know about it. Theres different types of banking. Tell us your background and why bernie is the right guy. So i have worked in large investment banks but right now we run a small Investment Adviser that provides Advisory Services to individuals and small businesses. Wealthy individuals i presume, small businesses. Yeah. Runs the gamut. Yeah. A lot of our clients want us to run socially responsible investment portfolios so we tend to have an environmental focus as well. I think that plays into our openness to bernie certainly. Where did this piece come from . It actually it was an encounter on the street. I was wearing a bernie button and picking up a cup of coffee and one of the ironworkers who are putting up a building in midtown asked me about it. We got to talking. And it was interest it was a conversation that was interesting enough that i decided to write something write this little piece about why i support bernie even though i work in the industry. Ive read the piece. But what what i dont actually understand is the core of your argument. Its almost the piece is about im a banker and im for bernie, but not why you think he is the right candidate or somebody who sort of right. So my support comes from multiple policy positions hes taken. I like his foreign policy. I like the fact that he seems like an honest person. A trustworthy person with a fair amount of experience. And i like the environmental focus. Hes presented. I also like the focus on the inequality. I think income inequality in our country has increased dramatically over the past 30 years. We werent really talking about it till his president ial campaign run. Theres been some right. Will he raise taxes substantially . Well, we have been there before, right . We have had tax rates in the 70 range all the way through the late 70s. Into the early 80s. So we have been there. We have been at a place where cap gains were taxed at income tax rates and our country did grow. We had rising incomes back then. One thing i found resonate about your piece is that moment youre describing a meeting in washington that you read about with some wall street officials talking about policy issues and that the consternation was really about potential changes to the carried interest tax. I think that really taps into what were hearing about and seeing on this campaign trail, which is the resentment for those not in the 1 , toward the 1 and then a tone deafness at the top or at least a perception of that. I think thats true. I saw the exit polls coming out of the new york primary. 63 of democrats said wall street is bad for the american economy. We have to go, but i want to make sure you can get a word in here. Mr. Wall street . Look, all i would say is that nothing severe or Bernie Sanders said has said is new. These arguments have been going on for years. What i want point to, almost propositions or policies that are totally devoid of any practicality. Bernie sanders was in the senate for decades. Never sponsored any legislation that had any impact whatsoever on actual governing of the country. And i think Bernie Sanders in his he will never be held accountable for his policies because he will never actually hold an office because people dont trust at the end of the day anything he says is actually practical in terms of real world day to day policy implementation. Can i say i disagree completely. Yeah, thats fine. Because his focus on divestiture at banks and reducing their size is actually pretty important. If you think large and complex financial institutes, you need to act. No one was talking about sections at the fed until bernie began to raise this in political terms. Yes, its been followed up by Elizabeth Warren in the senate as well. He has had legislation requiring the fed to act and use that authority tabled for the past four years. The big question is, if we think these institutions pose an inherent risk when is the time to act on it . Is it now or when the dow is falling 800 points it has nothing to do or almost very little to do with the growth of income inequality in the United States. With the rise of multibillionaires out in Silicon Valley. And hes what i would call 1890s progressivism will have no place in our country and it appeals to people because they act on it emotionally. I understand why it appeals to people. But in real terms theres a reason why he will we have to go now. Will fade quietly into darkness within the next three or four years the i think we found our new larry kudlow and barney frank. Please come back, because its a great conversation. You can read the piece bankers for bernie. Valeant announced an overhaul of the board, but is that enough . And cable and broadband, both sides of that debate are later on closing bell. This clean was like, pow it added this other level of clean to it. 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. Welcome back. Valeant closing down more than 5 today after finally releasing its long overdue 2015 financial report. They announced big proposed changes to its board. Our meg tarell has the latest and what this means for valeant goi Going Forward. It doesnt look like folks are responding positively. They plan to bring in three new people. Russell robertson who has a lot of experience in accounting, worked in canada. Value yantds home country as well. And dr. Amy wexler a dermatologist here in new york city. Papa is coming in as chairman and the ceo and pearson is on his way out. The former cfo and current director of valeant both leaving. In the 10 k today they repeated the charges of Improper Conduct they say stem from both shiller the former cfo and the company controller. So kind of interesting to see that being repeated. Of course this 10 k was so long awaited, the good news by doing that the company isnt in default. Or isnt in risk of defaulting on the debt. But according to analysts that seems to be kind of where the good news today ends. This 10 k isnt appeasing anybodys fears about the future of the business. If you take out the acquisitions of well fargo, the business actually shrank. So thats making them pessimist ebb about growth Going Forward. They laid out the investigations and requests for information they have and its just a really long list. Not necessarily any new super alarming surprises but a lot to deal with. As joe papa takes over valeant and the new board comes in in june. Kelly . Did you mention the North Carolina stuff too . It does seem like the can of worms is opened, you could have 50 states or a whole bunch of people coming after this company. Definitely. And on that list are several class action lawsuits as well so pretty much from every direction. Theyre getting requests for information. Yeah, its kate. One thing that was telling on twitter with you, when this filing first emerged you took a photo of that section of the litigation disclosure, because it was too much to summarize in 140 characters but a picture kind of toll you what was happening. This does happen with companies i cover. Once you spot a couple of investors, once one regulate ever does, theres a pileup of other investigations. How interesting, you know i have been out for three months on maternity leave. Something that started off as what the company framed and bill ackman the Hedge Fund Manager who is on the board, says is an isolated issue with the Specialty Pharmacy unit which had 7 or 8 impact on net revenue has now practically ruined the company. Its erased the vast majority of the value. Theres been a complete shakeup. The ceo is out. Its astonishing. Absolutely astonishing. It started off as a smaller snowball and got bigger and bigger and bigger. Its a narrative that bill ackman this week was repeating. This drug price increase is a small part of their business and wont do it anymore. It sounds like from wells fargo, david maris has been very bullish about valeant since he covered them early this year, but without if acquisitions or drug price increases this is shrinking thats very concerning at least from his perspective. Meg, thank you. Bringing us up to speed there. Meg tarell on valeant. Be sure to tune in on monday when bill ackman is a special guest for an entire hour. Im sure hell be asked about valeant and much more. Time for a cnbc news update. Sue herera . Heres whats happening. We continue to watch the trump protesters at the California Republican Convention South of san francisco. Riot police are on the scene and many protesters earlier on broke through the barriers. They were trying to get into the convention center. Trump was there, had to enter through a back door. As the entrance was blocked. He finished speaking to the republican gop crowd inside. He had to leave the same way he came in. A military investigation has found human error and fatigue played a role in the bombing of the Doctors Without Borders bombing in afghanistan last october. The pentagon says 16 u. S. Military personnel have been disciplined for their roles in the bomb bug wont face criminal charges. A new study out of copenhagen finds a link between the chronic inflammatory skin disorder and rosacea and alzheimers disease. The patients had a 25 increased risk of alzheimers disease. As we know Ronald Reagan suffered from alzheimers disease and now actor will ferrell has decided against playing a dementia stricken reagan in a movie billed as a comedy. A spokesman for the actor says hell no longer pursue that project. Reagans family had objected to the project saying there is nothing funny about alzheimers. That is the cnbc news update. Kelly, back the to you. Sue, thank you. Coming up, why discussing Home Ownership levels being near record lows despite extremely low mortgage rates. Whats going on with that . Well ask diana olick. And les moonves will gain more control of the media giant. The latest on that saga coming up. You both have a perfect driving record. Perfect. No tickets. No accidents. That is until one of you clips a food truck, ruining your perfect record. Yup. Now, you would think your Insurance Company would cut you some slack, right . No. Your insurance rates go through the roof. Your perfect record doesnt get you anything. Anything. Perfect for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claim centers are available to assist you 24 7. For a free quote, call Liberty Mutual at switch to Liberty Mutual and you could save up to 509 call today at see Car Insurance in a whole new light. Liberty mutual insurance. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. 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. It was the last trading day of the week and month. Heres how we finished on wall street. The dow down 57 points t s p the worst performer. It was down 10 or about half a percent. And the nasdaq was the worst, down two thirds of a point here. The cbs executives including les moonves are reportedly working on options to prepare for a post red stone era. Julia boorstin has more. Well, kelly thats right. Les moonves is preparing for cbs future after sumner redstone. He controls it through a Company Called National Amusements which owns 80 of the cbs voting shares. When redstone dies or becomes incapacitated, the trust will pass to seven trustees including his daughter. Moonves wants to make sure he can maintain his plans to grow the Company Without those trustees putting up roadblocks in the boardroom. Cbs talked with Investment Bankers about how the company should shift control away from the National Movements by collapsing the dual class share structure. A source says its one of the options that cbs is investigating. Now, cbs itself declined to comment. Working in moonves favor and one reason he may not need to execute such a plan is that cbs is up 18 year to date and up 110 over the past five years under les moonves. Now, perhaps well hear more from cbs when they report their earnings on tuesday, but for now, still kelly, no comment from the company. We look forward to more next week. Thank you. This week the department of justice gave the green line to charters takeover of Time Warner Cable and bright house. It still needs approval, but already raising questions about whether the government is picking winners in battle between cable and broadband. Joining us now Adonis Hoffman founder of not for Profit Research group who likes this deal. Also with us, todd oboyle from common cause, who isnt quite so much of a fan. Todd, whats your view on why this creates, you know, such a gulf if you will between the Cable Companies and broadband. Well, first of all, this merger is totally unnecessary. Its the job of the applicants, charter and Time Warner Cable to demonstrate that this merger would benefit the Public Interest and theres no evidence it would. In fact, it would bring too much concentration to the broadband market, to the cable carriage market and threaten innovation over the top. I have trouble understanding why the fcc would think this is good at all. Adonis, what about you . There are a lot of benefits. You look at the number what will become the number two and three cable programmer. This provides a lot of services, Broadband Services and Video Services for consumers. But more importantly, what this does is this really its a precedent setting transaction that the fcc and doj have approved. Allowing for this new company to do away with old habits and old trends that once were hampering the cable process. Cable industry. Yeah, its interesting you say that. So it does and it doesnt. It also makes it pretty clear they want charter to kind of have to compete and go into new markets. Theres lot of incentives now that seem aimed at kind of giving broadband a chance. Maybe more than its fair chance. Dont you think . Well, so one of the priorities for chairman tom wheeler has been to provide a regulatory circle or a fence around the online video Distribution Channels to allow for independent voices and independent programmers to come on. Thats what this merger does. So we were all very concerned about the fact that charter and Time Warner Cable had these onerous antidiscrimination clauses in their contract. What this merger does is does away with that. It also allows for the most favored nation clauses to be to be allowed universally. So theres a lot of precedent thats been established in this. I think what this does is it really lays down a marker Going Forward for any other further consolidation in this industry. Yeah. Thats why, todd, i understand your concerns about the power of cable. But it seems like with this deal, regulators have a heavy serving of saying well make you do stuff to compete and kind of make sure this isnt consolidating power too much. If anything, trying to continue to open unlike theyre doing with the set top boxes competition. Well, the fcc claims that this merger has been conditioned in a manner that will require competition. I dont think theres any good evidence that it actually will. In fact, quite to the contrary we have seen overbuilding clauses in private merger approvals that have really gone nowhere. Because theyre so hard to enforce. Concerning the issue of cable carriage and that adonis spoke to, i sure wish this merger would improve independent programming and diverse programming but frankly, if the fcc was concerned it should have included a condition on that and it didnt. To your question about set top boxes i think the fcc is doing the right thing by unshackling consumers from having to rent an old box that just gathers dust at 10 a month. Thats the different story altogeth altogether. You mentioned the concern about independent and diverse programming of course. But it seems like wait a minute, are we an era when theres never been more the proliferation of content across all different sorts of platforms seems like its at its apex, right . Well, i think youre right that over the top programming offers an exciting new world. And many new opportunities for new voices to enter the programming conversation. I would agree with adonis that if the merger has to happen, there should be strong adm clauses. Its really difficult to enforce those and frankly once you have a company the size of new charter, they learn lots of new tricks of the trade to find different ways to preference their own cable bundle over the top alternatives. We have to go, but it will be interesting to see if this kind of marks the power shift perhaps from cable to broadband. Of course we have to wait for final approval of the deal. Adonis hoffman, todd oboyle, thank you so much. Thank you. Warren buffett is going to do it live, Live Streaming tt is. The annual Berkshire Hathaway meeting will be live streamed for the First Time Ever tomorrow. Up next, we head to omaha, nebraska, and get a preview of this years woodstock for capitalists. Find out why homeowners are nearing record lows. Whats up . Does nobody use a turn signal anymore . 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. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. Shoshow me more like this. E. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Welcome back. Closely watched Berkshire Hathaway share meeting is tomorrow and now you dont have to go to nebraska to watch it. But becky quick is out in omaha covering that meeting. Shell be asking questions. We loved the interviews this morning. What do you expect . You mentioned a key theme on this, and what do you expect tomorrow . I will tell you the easy guess is rain, kelly, lots of it. The forecast is for it to really thunder and downpour. I dont know what that means for the crowd, but its not slowing anything down right now things are pretty busy. They are expecting 39 to 40,000 people to be here this weekend. Now part of the reason all the shareholders show up is so they can get things like the deals like the sees candy and the geico booth. But other people are here because they crave answers. They want answers from Warren Buffett and charlie monger. When they take the stage, theyll get lots and lots of questions from the shareholders. We got the chance to catch up with Warren Buffett last night and one of the questions i had, whats going on with the lousy earnings season . He told me to slow down a bit, and he said you have to put things in historical perspective. Well, earnings have been so high. Corporate earnings have never been better, you know . As a return on tangible equity, american businesses never had it so good. As a percentage of profits and Profit Margins up and down the line, business has been very good. The steel business has been terrible. I mean, pick out a few areas so its not surprising that if the economy is not galloping forward and you have earnings at this level, i dont see them jumping a lot from this level. Now, kelly, that may not be what the bulls had been hoping to hear when it came to stock performances and if they asked buffett what he thinks about the economy they dont get a better answer. I asked him if it feels like a 0. 3 economy and he says it does. It seems like things are picking up, youre looking at the 1. 5 to 2 gdp and he has different operations that gives him insight on the that. A lot are the companies displayed here today. You will see bnsf and he said its coal loadings that are down significantly, but rail loadings would be down without the coal earnings thats a precursor for whats happening in the economy. If you look around, you see the other buffett businesses here. You have sees candy right here. Cocacola yes Berkshire Hathaway is the largest investor. Some of the other companies that have been added recently. You will see imc. Thats one of the Huge Companies that he added in the last seven or eight years. Behind that is precision cast parts. That is the newest member of the Berkshire Hathaway family. They here with the aircraft engines they helped to build along the way. Thats kind of the feel you get here. By the way, there are some deals. I have been waiting for this all day. Thankfully, its finally my turn to get to buy one. For a dollar anyone can get a fudge bar. I think a blizzard is 2 bucks is that right . Yeah. Dilly bars are a dollar. All proceeds are going to the childrens miracle network. Thank you. I didnt know that. Proceeds going to charity. Thats what were waiting for as get ready for tomorrow. I didnt know if there were going to be deals because i would famously be eating into the profit story. Whats interesting, on the one hand you have the oriental trading guys saying the consumer doesnt look all that great, and Benjamin Moore saying theres an uptick in housing. Benjamin moore is a higher end paint. But youre right, the one thing the ceo says happens for them is the Housing Starts numbers. Even the permits have been down, even youve looked at lousy numbers around the peripheral, he said the key thing for Benjamin Moore is the Housing Starts. Thats telling a strong story. Last year was a record quarter for them. He said things are looking strong this quarter too. Im afraid that dilly bar will drop off the stick there. So well let you go there. A long weekend out in omaha. Im trying to figure out if i can stream this. Do you think bernie will show up for the woodstock for capitalism . No way. In two words, no way. If he doesnt want people to work for industrial manufacturing companies, he doesnt want pple to work for wall street. Or the are Drug Companies. Where is bernie campaigning this weekend . Hes in california right now. He also had a bunch of layoffs. A couple hundred. Home ownership near record lows. Were going to talk about the drop in Home Ownership with our diana olick next. 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. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Welcome back. As we mentioned last block, home sales, still Home Ownership is back on the decline to near record lows. Diana olick joins us now. What is behind the drop . The economy is improving and new households are growing, but twothirds of those new households are renters. Thats pushing the homeown ownership rate lower yet again. The nations Home Ownership rate fell to 63. 5 in the First Quarter of this year. Thats not only down from q4, but from a year ago as well. Home ownership peaked in 2004 at 69. 2 . Its now close to the lowest level in 50 years. And the problems continue to be tighter mortgage lending, higher home prices, and the fact that rents are so high now, that people cant save for that down payment. Take a look at this very cool map from seattle real estate agency. It shows Home Ownership changes since 1950. The darker the green, the higher the Home Ownership rate. You notice how the west gets very light after the housing crash. And doesnt really come all the way back. Thats where prices are highest. Even in the northwest. The middle has always had the highest Home Ownership rate due to the lower prices in the midwest, but its even lighter there now. Eight years postcrash. It begs many policy questions, of course, on mortgage lending, but were unlikely to see anything change there until after the election. If you want to keep watching that map spin around again, its on my facebook page. I highly recommend it. Its oddly soothing and troubling at the same time. New company, old look. A new chinese athletic clothing line launch this weekend. It looks familiar. A fair price, quality service, and that horrible smells are really good at hiding. Oh, boy. There it is. Ohh. Ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. Get started today at angies list, because your home is where our heart is. 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. Well be with you shortly. Yeah right. Xerox Predictive Analytics help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here Customer Care can work better. With xerox. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping Human Resources can work better. With xerox. Welcome back. Theres a brandnew athleticwear company that Just Launched in china. There it is on the right. Look at the resemblance of its logo to that of under armour. It doesnt cross. Uncle martian isnt even tried to hide it. The image is from the launch under the under armour logo. Under armor said, quote, under armour is aware of the launch event. This is a serious concern. And blatant infringement. Under armour will pursue all legal courses of action. And they should. Good luck to under armour. Good luck getting due process with the Chinese Government on an issue like this. I also was wondering, is it actually called uncle martian . Or just a weird translation . Just enough to sound like the company. Im amazed theyre this public. This has been around for a long time. I dread donald trump could be all over this like a cheap suit. Come on. Look cheap suit . Or cheap athletic gear . Technology was hacked to then help flood the u. S. Market. A lot of these companies have had enough. You know what concerns me the most, including the market right now, you know, im a big open market, free trade kind of person. And i feel the tide the tide is shifting. Are you feeling the burn . We have to go. Thank you guys so much. Have a great weekend. That does it for closing bell. Fast money begins now. Fast money starts right now. Live from the Nasdaq Market site overlooking times square. Im simon hobbs in for melissa lee. We have tim seymour, steve grasso and guy adami. On fast, warning to the world. The biggest retailer tanking today. Is it signaling trouble for the u. S. Economy . Plus, gold has gone wild. If you missed the rally, relax, weve got another way to play the move. Later on the show, apple shares are pennies away from doing something extraordinary. 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