Disruptions from those wild fires in canada. Weve known that for a while. Helping energy and industrial stocks move sharply higher as well today. Now, wells fargo is unveiling a new loan offering to get money to Small Businesses much faster. The chief operating officer tim sloane will join us in an exclusive interview. He ee going to talk to us about new initiative and whats been happening all across this space. We have a lot to talk with mr. Sloane about. Amazon, maybe youve heard theyve targeting barnes noble and walmart and others. Now its youtube. The new video strategy coming up. And disney. Espn, theme parks, movies, and succe succession plans will be starting it. Dominic chu is tracking things for us, y, dom. I asked a number of traders if they could peg one exact item or two on why we got the rally. No one can sates one definitive thing. I want to show you what some of the guys are talking about here. Its a little draw mat imhere because were talking about dow components, the widely held big cam names. I want to take you to post five. These guys right here, theyre highlighted in yellow. Youve got mcdonalds. Johnson and johnson and home depot. They all at one point tort hit record intraday levels. Amidst the market. All of these stocks have hit record heise. There are growth concerns. But still those three stocks make some heise. One other thing i wanted to point out about the stocks they could be yield place. That could be a big thesis for them. If you take a look at some of these yielding between home depot. Johnson and johnson and what we have, you have 2 . In the case of mcdonalds and jops and johnson. To put it in percentage they look at what happens with the 10year treasury note kweeld. Stocks like this. Investsers have seen perhaps a little bit of demand because people are looking for place to park their money. But a big theme has been this kind of quiet rally. Nobodys talking a lot about it. Nobody can pin what it is exactly, but still a 200 day and were seeing some signs of strength. Its what well be watching as we watch the closing bell. Back over to you guys. Very good. We like. I wish i had thought of that. Thank you. Just briefly on the pound of goldman. I want to put out a call for the ten year. This year yeelgd 4 . 2. 4 that thats a very different story. Well doublecheck. Youre right. 2. 4 . Now that you think about it. It sounds. 2. 4 sounds like hope. 1. 4 would be a little worrisome. Well talk amongst ourselves. Now to the retail. Gap, thats ahead of macys earning report tomorrow morning. Lets get to Courtney Reagan with more now. Hi, there, court. Hi, there, kelly. I talked about the wall of worry specifically yesterday. And then just in 24 hours the course of nervous ps has seemingly gotten a little louder. Its a big week. Macys is first. Analysts havent been optimistic for a while. But in the last week or even two days. The sentiments have gotten decidedly worst. The come parable sales will fall 6 which would be the wift performance since the financial crisis if that happens. They lowered estimates with what he called silg cant cuts to macys and nordstroms and then he said hes worrying those reductions rurnlt deep enough. Theres some debate. But a few signs point to a strong april. Higher promotional levels still not persuading shoppers to buy. Theres the continues pressure and fashion and am zop. Cold weather hampering sales of spring apparel and increasing gas prices up about 50 cents since midfebruary. Less than a month ago when i interviewed the ceo, he reit rate guidance for negative sales until the Fourth Quarter and said he sees the trend of Consumer Spending on cars and homes continuing and they by the Fourth Quarter spending will continue to his category. Thats possibly six more months of negative sales if thats what hes still projecting. How much of this is just apparel for each of it. You made a point and also the comments out of jcpenney where theyre saying theyre seeing a reintroduction of appliances off to a great start. Exactly. I think apparel has been a weak spot for a while but not even all apparel. Think of some of the strength weve seen. Even though amazon doesnt break out categories, there are some nults and consultants who look deep at what they can gather from surveys and more folks are buying apparel from amazon. So, again, those are just more knocks to those traditional apparel players which could be troubling and about the point to jcpenney, theyre putting them into 500 stores. Consumers pay more for durbling big ticket goods that perhaps theyve put off for some time and now they have no choice. When your washing machine breaks, what do you do, you have to buy another one. Right. So i hear. Thank you. Target chairman and Ceo Brian Cornell will be on squawk box tomorrow morning. Make sure you dont miss it. Boy, a lot going on with retail these days. Lets get to our closing bell for a tuesday. Joining us kimberly foss. We have stephen guilfoyle, we call him sarge from post 9 and brian battle joining us. Welcome to all of you, sarge, whats going on. A 192point rally today. Where did that come from . You know, after the 2074 level, we hit it twice, we e came off it twice. When we finally cracked it, it acted in support once. That was our pivot point this morning. After that it was technical. We peaked out at 2082. I know we came within pennies of it. That was our next technical level. You can see a lot of the electronic trading. Theyre pinging back and forth between the levels theyre preset. Kimberly, youre part of this rotation into the kind cheaper names, is that right . Yeah. We like the value sector. It tends to reward our sector. About 200, 300 basis points for the earnings distress company. Value adds value to our portfolios. Thats one of the Biggest Holdings in the portfolio. How do you define it . What are we talking about here, kimberly . From me . Yeah. Yep. Their book their book to market ratio, basically the book asset, the accounting for the book value is higher than what the market is selling for. So theres an Intrinsic Value there. So when we have mutual funds or stocks that have value, theres intwins sieve value. So thats why we overrotate into those sectors to add significant value to the clients portfolios. Brian, weve got important offerings this week including the 10s and 30s. What kind of demand do you expect and what does that say about expectations for the fed going down the road . Thats right. We had a threeyear auction. That went great. The one to watch is the ten her year auction. That sets rates along the gloechblt ten euro is important because were right now at about a 3 1 2, 3 5 8 retail level. Thats near an alltime low. Were having a lot of distress and a lot of discussion about whats the fed going to do. The fed has been antidatadependent. They should raise rates because unemployment is low and it looks like theres growth. If you by policy, the fed should have raised rates because weve had such low rates and extraordinary monetary policy. We have to give ourselves room. Were going to be wanting to auctions. What was it that drove the market . Thats what didnt happen. Its good news. We also had some head lines out of japan talk about pushing the yen lower and there were comments from bill dudley about the dollar. How are those kind of you know, playing into what were seeing today . You know, central banking, of course, is key to this. What he said is pretty much right on. The central bank missed their mark, i guess, three or four years ago when they should have normalized. If we were in a normal environmental right now, most likely theyd be talking about easing, not raising rates. Its been rather poor. The market is going up quite simply because we believe that they have to be dovish at this point. If you get me started. I dont know if you want to go there. What do you reach, sarge . I believe their mission right now is play nice in the sand box. So what we see is we see the hawks. We saw them last week late when they were trading around 92, 93. Tlall send doves out. Thats right. Do you think theyre going to raise rates and are you positions yourself accordingly or not . No. I dont know if theyre going to raise or not. What, theres a 5 chance they may raise. But if you look and drill down on the jobs numbers, youre looking at real wages going. Think sometimes theyre discounting the fact that theyre not going to raise and so i think you need to be proactive. I think theyre going to raise at one point. That being said, i think investors need to position themselves so theyre going to profit if they raise or dont. So for us, too, were adding into as the volatility is in the market were adding into the real estate sector and the utility. They want to get paid for when theyre holding the assets and these have 3 to 4 differ accidents. Plus youve got that. The bridge sectors go up. Thanks, everybody. Weve got to to leave it there. Stephen guilfoyle. Kimberly faust kicking us off as we look at the market. A little more than 45 minutes to go today. The s ps up 22. Look. Gains are pretty similar across all three averages. The nasdaq up 1. 1 . The volume is not all that heavy but the up volume over the down volume is very convincing. 451 right now. So a lot of up stocks compared to down stocks today. Wells fargo making a new push to take Small Business lending to the next level. The banks lending tim sloane, of course, hell join us to talk about that initiative next. Also ahead, disney reporting its earnings after the bell. Well tell you what the street is looking for and well break down the entertainment giants results when we hit the tape. Youre watching cnbc first in business wide. Toy boat, toy boat. 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. Where investors can investigate and invest in vests. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome back. Its a pretty strong session on wall street. Lets take a check of oil, again, looking at that relationship here. The correlation between oil and the markets and the dollar, of course, the dollars up a little bit today, but, again, were seeing a rally across wti and brent crude. Just under 45 a barrel. Even that, transports are also strong. Theyre up 91 points. Look that. We have a couple of other movers to tell you about, solarcity plummeting. It cut its guidguidance. A solar support policy pullback in nevada and a january price increase on retal systems. Meanwhile International Flavors and fragrances are higher on an earnings beat. The Company Makes flavorers and fragrances from cosmetics and detergents to owe getter and ice kriek. Right now we have a news alert. Whats going on . Walmart and visa in a legal battle. Dow jones reporting walmart is suing visa. Its not allowing it to require that its clients use a pin when completing a transaction with a chipenabled debit card. Walmart says visa also allows the clients to use a signature to complete one of these transactions, again w a chipenabled debit card. Why is this an issue for walmart. First of all, it has to pay visa more for these signature transactions and second after all walmart says its far more secure than one completed using a signature. Theres a greater chance of fraud. So once again walmart is suing visa over this issue. Visa declined to comment. Kelly, back to you. All right. Mary, thank you. Wells fargo, meantime, announcing a new plan to get Small Businesses loans the very next day they apply for them. The new initiative is called fast flex. They hope it allows them to serve more than 28 banks. Joining us with more on that in an exclusive interview, we welcome back tim sloane, whos president and chief operating officer at wells fargo. Tim, always good to see you. Thanks for joining us. Good to see you, bill. Hi, kelly. Welcome. This is part of an initiative you guys set up two years ago to put together a 100 billion loan portfolio. Youre at 40 billion now. Is sth a new initiative or a jump start . Clarify that for us. Sure. So youre right bill two. Years ago we set up a fiveyear commitment to Small Business. Were 40 billion into that commitment. Smalls by is a very important part of our Business Model. Its the life blood of the economy in the u. S. So the fast flex small loan protect is just that. Were going to provide more convenience to our customers by offering them the opportunity to apply online. Get an answer very quickly, and have the money in their account the next day. Its interesting that this happens the same day lending clubs had some well publicized struggles and it caps off a couple of months when a lot of these lending platforms are struggling with their fundamental Business Models. So, you know, how, tim, do you guys blal offering capital basically overnight. One of the things that we were very focused on in developing this product is using our own Customer Data developing an promote algorithm, testing that over the last nine months to make sure that were making good credit decisions and were very comfortable with the product and with our credit decision model. But i mean underlying kellys question is this trend toward whats being called fintech, Financial Technology out there thats making in some cases banking much easier, much, much easier for the customer, whether its for payments or loans or whatever. Is this a response to that . Are you just are you guys trying to keep up with the trends in technology right now . Actually i would argue that many of the fintech firms are trying to keep up with wells fargo. When you think about technology, its a fundamental part of our business. What we try to do every day is deliver technology in the right way to our customers. We do that to consumer, Small Businesses, middle market customers as well as corporate commerce all day long. We spend billions of dollars each year on technology. Whats exciting thb product is we develop this ourselves. Also think about the difference between what wells fargo can offer and your big competitors too. Theyre trying to figure out how to try to crack the code here. Is the fact that you can keep you can afford to basically make the loans yourself, hold them on your blass sheet. You dont have to worry about matching a barrower with an investor, its fufy that its reminiscent of what got people into trouble. There are similarities for sure. Theres no question that one of the advantages we have at wells fargo is weve got 1. 3 trillion worth of deposits and were in the business of taking those. Not only are we the largest snal lender but the largest lender in the country. Its a very important part of our Business Model. Our low cost deposits create a competitive advantage for us relative to many of our other banking competitors, the traditional models as well as some of the other lenders. It will be interesting too. This is for existing customers for now that helps aid you in trying to assess the credit worthy is. Theres a lot of Different Things happening that change the environment. I want to mention what Anthony Jenkins at barclays just said. He left with a huge retail presence in the uk and says as he looks at his next venture that large banks will venture as they seek, leave behind a zombie core and one in which he thinks there evening going to be many, many more branches closed Going Forward schl that true for you guys in the economics of the business and where this is headed . Well, a lot of folks inside and outside the industry have been guessing and forecasting that stores, banging locations. Branches, everything calls them something a little different are going to become obsolete, but the problem is theyve been saying that for decades, we believe customers are going to decide how they want to bank with us. Thats why we need to make sure were providing them our banking products the way they want to get them. Sometimes they go into the store. Sometimes theyre on the line. Sometimes its mobile. But our customers get to decide. We feel very comfortable that our Business Model is being responsible for our customers so we can provide our products, when, where, and how they wanted to use them and its just a great example of that. Hey, tim, before we let you go, remind me again t day that jom stump is retiring and youre taking over as ceo, when is that again . You know what . Ive got a great new job as president and chief operating officer. This is a great company. Its the boards decision and im sure theyll make a good one. Well put. Thanks, tim, nice to see you again. Nice to see both of you. Thank you for your time. You bet. Tim sloane, the chief operating officer. Meantime jamie dimon will be on tomorrow morning. Always fun. 35 minutes left in the trading session. The market continues to gradually move higher. The dow up 208 points right now. The s p up 1. 16 and the nasdaq up 53 points right now. And weve already talked about amazon going after the retail space. Now, watch out. Youtube. Amazon is launching a new video service. Up next, your money, your vote. John harwood will tell us what donald trump, Hillary Clinton and Bernie Sanders have riding on the nebraska and West Virginia primaries which are under way today. Stay tuned. Welcome back. Voters hitting the polls in nebraska and West Virginia primaries today. Our john harwood has a look at what we should be looking for. Hi, john. Hi, kel. The thrill is mostly gone from the primary campaigns but there are contests today including a contest in nebraska where donald trump is running even though he doesnt have any active candidates left. Most of the attention is on the democratic contest in West Virginia where polling shows Bernie Sanders leading Hillary Clinton. Now, republicans are most interested in the upcoming meetings between donald trump and republican congressional leaders. House Speaker Paul Ryan hasnt endorsed him yet. Senate Majority Leader Mitch Mcconnell has and one said the talk of civil war should calm down. It seems to me that, you know, the campaign is evolvie i in kind of a little different way. What ive been saying to people who, you know, so quickly say negative things is lets chill. Now one job that cant wait is fundraising. Republicans and democrats spent more than 1 billion. Hpt has spent 180 million. But donald trump who has financed mostly his own campaign has raised only 12 million yrs. He and the parties are talking about ramping up together, guys. I dont know if youve seen it but theyre releasing this extensive interview they did with paul ryan where he talks about we cannot pretend the gop is united. We need to unify and we need to convince young voters. Hes not coming out and endorsing trump per se but hes trying to bring the Party Together at this point. Paul ryan may run for president himself one day but he believes in it. Hes not comfortable with some of the rhetoric trump has used hchls going to have to calculate not only whats best for him but for his members. Theyve got a 30seat edge. If trump run basd campaign, that edge could be in jeopardy and hes got to be careful and figure out how to lead his party at this point. All right. Our chief washington correspondent john harwood. Thanks, john. See you later. Time now for a cnbc update with sue herera. Hi, sue. Hi, guys. Heres what happening this hour. Fierce fighting between iraqis and militants taking place in northeast iraq. Iraqi soldiers fighting on terrorists positions in a local village. U. S. Transportation security anthony fox seriously considering shutting down the washington subway last week. A woman led police on a wild car chase near cincinnati all captured by police cameras. The video shows her fan running through yards to get away before crossing into oncoming traffic, narrowly missing a police car, she also had a child in the van with her. And bud wiser is getting patriotic. Its replacing budweiser with america on the front of its 12ounce cans and bottles throughout the election in november and it will modify its label including phrasing and passages from the pledge of allegiance. Thats the cnbc news update at this hour. Back to you, guys. My friendses anticipating this are not asking for a bud. Theyre asking for an am. Sounds like an amstel, thats the problem. Look at you, kel. You know your suds. I do. I have not seen it. But i am aware. Its smashing success. Thank you, sue. Thanks, sue. Heading to the last half hour of trade today, a pretty good rally if youre just joining us. The dow up 201 pointss. Nasdaq and s p also healthy 1 plus gains. We have a leading trader tells us what hes watching in the close. Stay tuned. After the bell, disney and Electronic Arts. Well run through the straight forecast if you and break down the numbers the moment they hit the tape. Stay tuned. The rally showing the s p 500. Virtually all stocks are higher today, and you saw kohls was the big loser. A pretty good gain across the board, all sectors. Theres been plenty of good news. Lets stay with whats working right now. Im joined by mark newton of newton advisers. You like the way this ones setting up. Hi, mark. Technologies are important. Theyre starting to show signs of making a real comeback. The biggest percentage of the s p. Its an important sector. You see Technology Got up to former highs. It stalled out. Now were starting to show signs of stabilizing. Now you have apple, seagate, western digital, all down 13 to 15 . Weve corrected an exact 50 of the prior low to high. Thats important. We actually moved to multiday heise. The nasdaq and europe started this off. I think its important given its such a large sector. Do you think it has legs . If we look back at the chart, it plateaued here. I mean what takes us out of this whole range . At least near term it is important. Technology has been one of the strongest sectors. None of the others have gotten back to nother highs. So im encouraged to see them start to stabilize and move higher given theyre two good laggards. So i think its good. Well keep an eye on it. Thank you so much. The rally continues. The dow up 202 points. People used to worry that google was trying to take over the world. Now amazon may be giving google competition in its latest business skpachlks well tell you what thats about coming up next and despite rolling to the fifth best opening of all time. Captain America Civil War could not help but it could allay the futures of the mouse house. Well tell you about the earnings coming up. Introducing the 241 horsepower lexus is 200 turbo. 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So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back. Amazon taking on a new rival. So will this make a dent in youtubes business . Joining us, gene munster, long time senior alt at piperafterer. Is there anywhere jeff bezos wont try at amazon . No. Hes going to try everything and hes going to break down barriers. Theyre basically making it so any amateur can have it that was traditionally reserved for larger companies. So i think another greater sampy of him. How long is it going to take to get people on youtube . I think theyre going after a slightly different audience. Youtube was great at use jern rated content back in the day and user generation doesnt happen as much any more on youtube. Its more professional but q educational. Quick snippets. What this video platform amazon is going to go after, more professional, more netflix content. Over time theyll become more competitive because were seeing more premium content on youtube but probably for the next several years theyre different. We were talking about this in our production meeting today. Can probably counsel on one hand the number of missteps that jeff bezos has had through the years and mainly its been through the hardware side whereas on the other size, they eve pretty mu batted a thousand, right . I think the biggest misstep was the fire phone. Theyve knocked it out of the park. Its a great example of them continuing to find other ways. You could be hosting this stuff on ews, so they really hook you in with the freebies and get you to start to spend more on amazon. And they still have the naysayers and the concept techs, you know. Jeff gun lack just told kelly the other day he would invest if they could achieve a 2 profit margin out there. What do you say. Would you buy it . I would. Eventually its going to be 50 or 70th. If you were a private equity company, youd never invest in an Ecommerce Company because at the end of the day, there ee too much infrastructure impore to replicate. Obviously they have the aws piece too. I think to look at the valuation or operating margin on this is just missing the point. Theres a bigger theme going on and amazons got a pull position. All right. And today bernstein slapping that 1,000 price tag on amazon. People love the story. Thank use, gene. Thanks. 15 minutes left as the market is setting highs for the day. The dow up 216 points right now. The s p up 24. Look that. Everybodys up. Some will regular highly contested bidding involving me and bill last november. Times running out. Weve sweetened it by adding cash into the equation. Were getting close to that as well as for the cherry auction. Were up to were at dow levels right now. Theyll not try to get the dow to rally. We did manage to get the total well above the dow today, 24,000 and counting. Love to see the number get so high. The lulu and leo fund is a phenomenal cause. Its one thats very close to our hearts and it will be interesting to see what they do with the fund. The final bidding. You saw it there. The final bid was 37,750, the winning bidder. Youll meet him. Maybe hell tell us how far he might have gone otherwise coming up. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov 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. Youve got questions about cord cutting always as disneys Earnings Announcement looms as well. Julia boorstin with what to expect after the bell. Julia . Well, disney expects to grow. Its bottom line t studio and domestic parks as well as Consumer Product fwus biggest focus will be on espn. How much advertising and new revenue from digital distribution and skinny bundles can outweigh subscriber declines. Well be back with those numbers from disney when they cross at 4 15 eastern. Bill . All right, julia. Thank you. We look forward to that very much. Back in november lets all remember we participated in an online clarity cause thats near and dear to our hearts here at cnbc. The lulu and leo fund started by our former colleague kevin krimm. Bill and i offered to meet for drinks in order to raise funs for the charity and as the bids starting ramping up, we stepdown it up. We started adding sweetens. Art cash. A meet and greet on set. So todays payday. The winner joins us now at post 9. Hes chris gecko. He donated 37,750. Were eternally grateful and he was able to bring a guest and that was mr. Christopher mangum. You didnt know up till now how much he donated. No. It was very generous. It was very generous. Tell us how you made the last bid. I was on a flight coming back from london and stopped at my local watering hole, flipped over my laptop, tured my myfi on and started bidding. I assuming it was ebay. I kept staying all night in a bar trying to get this. At some point it actually becomes a lot of money. It worked owl well. How long have you been watching Bill Griffeth . From his old financial days. We go way back. A big fan. And you were a broker at one time. Yes. That was my first job out of college. Then you went into the software business. Started your own business. Now youre semiretired here, right . Yes. I basically help Startup Companies now. Its a lot more fun. I figure with all the experience i had over the last 15 years, some good, some bad, at least i can make it where hopefully its a little less painful on someone else. We try to make it fun around here too. Some days the markets up, its down, you know. How do you fit into the equation here. Im chriss lawyer, business parter, and translator. I hope youre not his accountant, not if you just foup out what he spent. No. I think when his wife finds out, theres going to be a trip to cartier. Your portfolio, you have a loet of cash right now. Yes. Because . I think the market is a little propped up. I think its money coming in from stock buybacks and if you just make a lower denominator, it makes it a little easier. Youre not alone in that fear right now. Thought it was going to happen to february and it got right to the ka pip lags moment and it didnt happen. Well see. There seemed to be a lot of people burned and a sense like it cant keep going. How long are you going to sit on the sidelines and wait to see what happens . I still bought some stuff. I bought something beat up. Im a big fan of the old school guys. Peter lynch. Buy good quality stuff. Have real earnings. You can still put it in a vault. Ive never been a big fan of being a trader because youre always going to be left out in the cold. Is that like General Electric . No. I buy boshing stuff. But im a tech guy. I used to work for oracle. I spent time in that world. That was a great buy and keep but theyre Old Technology now. Are you a day trader now . No. Were also serial entrepreneurs. We like startup businesses. We even done a number of businesses. Were opening a restaurant in new york with a frelkd of mine guenther seger, may 20th. Thats a tough business. Yfor what hes spending you can tell us the name of the restaurant. Guenther seger restaurant opening may 20th. Thank you, chris. Weve got things planned for you after the show. Well go across the street. You get to join us as well. Thank you. If anyone else wants to contribute, you know, 40,000, 50,000. There will be another auction, i guarantee that. Were coming back with a closing countdown. After the bell, the media landscape changes daily. Few people know that better than media director ross levin sohn. Well get his tachlkt youre watching cnbc, first in business worldwide. Ents. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Perfect driving record. Perfect. No tickets. No accidents. 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About 2 1 2 minutes left before the cloechlts dominic chu joining us. 25 points. It was a rally that started on the open and never looked back. It started on the open and was up 120, 15 1 30, 150 points. A lot of traders, tried to ask them what the reason was. If they could pin it, it was this quiet rally. It happened after the second day we saw the second highest volume day of the year. When you cant figure out why its happened. Right. Oil bumping 45 a barrel. Maybe thats the peak. Its become ping up again. Earlier art cashin was telling me the same thing. Theres still the driving factor and its been for quite some time for months. It will be something to Pay Attention to. The only thing that some of the bulls may not be as excited about with regard to this is the fact that technology has been lagging in todays trade so far. So youd like to see biggest sector of them all. Its still up, just not up as much as the rest. Fears of retail as well. The numbers from macys. This is the week. This is the week where were going to see a lot of the data points wlrks or not the retail numbers come in. Whether or not theyre spending the way we hope theyre going to. M they make up the bulk of it. Its going to be a huge one. As a matter of fact, lets show you. Disney is coming up with the earnings in just a few minutes. Kelly and Julia Boorstin will have that and Electronic Arts in a very competitive category in the video game industry. Its up a fraction right now. All of these things will show some signs of whether or not people are spending money and thats going to be it. Thank you, sir. Youre always welcome. See you later. Were going out with a pretty good gain of 100 points. Theyre all higher. Vaneck ringing the bell as well as nasdaq. Thank you. A strong session across wall street. Lets take a look at the close. The dow down 220 points. Gains on almost the exact same magnitude across the major averages. The s p up 25 points, the nasdaq up 59 and its going to be a busy hour for earnings here. Were gong get results from disney, which was also up high e nearly 2 , and were keeping an eye on others. Arts, communications, fossil, Planet Fitness. Jon najarian is all firing up. Mike santoli along with cnbc contributor jon najarian. Dont think you can point to any one fundamental driver. We like to point this out when all are up the exact same amount. You have the dow, s p up 1. 25 or 1. 26 . Clearly somewhat mechanical. Reallocation into equities. I think the backdrop is the bears had a shot to take us below the range. They really seemed to squander that. The market didnt want to buckle and you had a lot of bearishness building up quietly. A lot of put buying. You had volatility levels that descended down to a point. A lot of them with treasury yields at 1. 75 said lets build it a little bit higher. Whats working for you, jon . Clearly we knocked a couple from crude oil. Crude oil was up almost 3 per day. The weak report we had, even though on a you know, 100 millionperson economy as far as the working people, to have that, it didnt seem like the end of the world but it did push off the rate hike. Now with a strong jolts report. Youre not seeing it. Its 1. 73 or thereabouts. You had the german tenyear. You also had this sort of clearance to have this good Economic Data be good news because you think the fed is not doing anything until february at the earliest. Alsoly point out yesterday a monitor someday. 25 billion. Another big day today. Heard yesterday was the fifth biggest of all time, could that be right . It got all out there, really well received. That doesnt directetly resolve stock prices. The systems flush. You get people thinking about buy backs and it seems like things arent broken. Lets do shares on that. Theyre up on their Earnings Results this afternoon for you. It looks like to the range of about 5 . Julia boorstin has more. Hi, julia. Hi, kelly. Thats right. Electronics arts beating estimates on both the top and bochl line. Adjusted earnings coming in at 50 cents a shafrmt wall street at 42 cents per share. Revenue coming in at 24 million versus estimates of 889 million. Now, e. A. Does provide guidants. Q1. Fiscal q1 guidance is coming in at much weaker than expected but for a full fiscal year guidance are coming in higher. Kelly . Who likes e. A. Here. They need would you like to introduce me . This is steve barrassow that thank you very much. Which way do you want to play . Do you want to play sports . Call of duty . Its back and forth. E. A. Is down 6 or thereabouts day to day. You need a digital platform. We talked about that last week, so everyone questions that 5. 51 billion takeup. You have users running straight up. Where does e. A. Get that digital platform from . It begs the question. Let me go back to the conversation we had been discussing. Kind of in contrast to what we heard from mark cuban on the Network Earlier today. Lets start by taking a quick listen. Were in never never land. I dont know where were going go, and i dont think anybody does. Wi seem to be in a trading range, but the reality is theres really no triggers and then we have the uncertainty of politics, you know. I think, you know, depending on where things go in the poles, were going to see it impact the market more and more as we progress. What about no triggers . I think theres no immediate catalyst. Thats the thing that matters in the next week or two weeks. I dont disagree. Were smack in the middle of the range. But were at this level a month ago, but i do think these things are often decided in retrospect. If grease was bad news instead of a little bit of bad news, that could have been a trigger. By the way, it feels like everybody is bracing for china. Obviously they thought it was. Here it is, instead, basically accusations are tossed by one of the houses of their congress. So because of that, that countrys etf made a nice sharp turn around and youre that i believe thats the biggest potential. Its like a volcano. Always. Nobody knew what was going on. Now after two months they decided to go backward and everyone looks at oil running, whether its the canadian fire, whether its china. How do you start to really put this into the calculus and if you see china start to fall off again, which i do believe you will see because i think its going to be a consumer pain. In a sense they meant it. Mon moneys cheap. The world is not growing very fast. What do you want to pay today for the earnings on either safe stocks or riskier stocks. Its where tes the crowded tra by the way, lets continue with this theme of the apparel. Fossil shares are sinking. Mary has an alert for us. Mary . Kelly, the companys earnings on the quarter were pretty much in line with expectations. Revenue shares also within expectation. Maybe a hair short on that. The reason the companys stock is tanking there, off 25 is because the weak guidants. Its now 1. 80 versus 2. 80 is what analysts were expecting. One of the reasons is the Company Recently acquired a Company Called misfit which is a company that helps you track your devices. Again, that week guidance for the full year putting a lot of pressure on fossils results. Of course, the company has been under pressure for the last couple of months in large part because of the concern of competition coming from the apple wat watches to its others. Kelly, back to you. Mary, thank you. How much worse can that sector get and is it really being priced across the market broadly . I think with an accessories chain, i think this is it. For the apple watch, its not what everyone expected. Its been horrible for them. It bled off any demand there was outside of the super high end luxury. They needed to do this. Fossil need dodd this to try to survive. So, you know, obviously if they get hit on both the fitness band side if the margins arent going to be there or its not going to play out as they hoped it would have been, they were going to die with just the watch. Im looking across. Mikey, do you wear a watch . Its actually a 50yearold watch. He wear as fitbit and youre not buying watches. I had an apple watch and its not working. People look at their phones. If you dont have a fitness band, you look at your fones. This is what happens. The street is just abandoning. So if the stock is going to trade where the after hours action took it. Its at the january lows. Just below 30. People are still going into the malls. It bears repeating. This stock. Screened up there. A lot of the people that sell their goods through the malls are not feeling it. Nonetheless, the vacancy rate according to simon is not reflected in that. Is not building. Instead theres demand for that space. At least in its malls. First of aushlgs 6 comes up. The renlts roll comes up. They have this steadiness about it. Plus theyll tell you, theyre becoming hubs for other types of activities. We have restaurants and movies. Also the anchor Department Stores arent really big rent payers. Theyre there to build traffic. The dividend chase has people diving into these weak stocks. This thing yields under 3 . Ite knowset like its a real fat yield but its fat enough. Its certainly going to bear watching. Its going to be a different story. In the meantime, theyre effef t effectively any parting words . Mr. Cuban said it before. For me i always look at that flat on year which is 2043 lets call it. That is your bullish versus bearish sentiment. Obviously below. We tested it this week. 2039. We bounced right off of thachlt if we start to turn south, flirt with that again, you want to be cautious. 2111 is your resistance on the way up. All right. Do you write these down . No. Quasi rain man when it comes to these things. You look at them every day. Thank you for joining us. That is steve grasso. Theres more coming up. Bonds rallying with bonds today. The question, which is the real tell about the health and u. S. Dmi. Vanguards greg davis will weigh in at 5 00 p. M. Disney will report its earnings at any minute now. Are there concerns about espn going to impact profits . Stay tuned. Thats right after this. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome bachlkt dncht disne earnings are up any minute. Robert, what number are you going to be most focused with on here . I think like everybody were going to be looking at media and whats going on there. U think whats important is the film division. Fully. Is able to make up for what were lake from espn. The results are crossing. Wait right there. Lets get to Julia Boorstin with disneys averages. Hey, kel, you see disneys shares are down. Disney earnings coming in lower than wall street expectations. Adjusted earnings of 1. 36 a share, thats 4 krenltss less that what wall street expected. Snow going through the different divisions as expected, the studio had a big beat. The studio showing much higher operating income than expected. 542 million on the force awakens and also democrat zoo tone ya. Parks suffering overseas. Now, of course, Media Networks are always under the microscopes here. Thats a hair lighter than the 5. 9 billion expected. Operating income grew 9 to 2 president 92 billion. So thats up 9 from a year ago, but it is a little bit lighter than wall street expected. Im sure theyre going to be very much focused the Earnings Call that starts at 5 00 p. M. Eastern. Kelly . Wow, julia, thank you is much. We have ivan fines. This is not a small miss. Whats your read . Well, there was a feeling that parks would be slightly light. I look at what theyre going to do. The tremendous strain. They have two of the most powerful franchise. They continue fro deuce big means. The next big mire is finding dory. These are great fran chiepss. Im still positive on the company. Any weakness, i think, is a buying opportunity. Okay. Robert. Im looking. You know, so do you have concerns that resurface here about the strength there . Well, i mean, look. The transition with whats going on right now, kelly, is going to be a multiquarter event. Its not going to be solved in one quarter. The hope is film is able ta make up for that. I wasnt able to hear the top line on films and that parks would do that as well. Parks came in a little bit lighter than expected. I think julia said some of that was overseas but also if you look at whats going on in california, half of that park is shut down in preparation for the new star wars land that will be opening next year in time for the new star wars film. I agree with i vachblt its got a very robust pipeline but there are going to be some growing pains. Julia has more. She rejoins us. Julia . Hey, kel. Just to dig into the Cable Network division, Cable Networks does, of course, include espn. The on rating income up 12 . The income was due to lowered programming cost and they talk about the shift of College Football games. They say in the Current Quarter only one Football Game aired where in the past, seven arid. Looking at the parks division, they saw a 4 increase in refr knew. On rating income increased 10 . They talked about some shift in holidays there. And then looking at consumer policies and revenue decreased. So it seems like foreign currency, disney is such a Global Company that there was foreign currency impact on a number of these divisions including parks and Consumer Products. Back over to you. Julia, thanks. But, again, what do you think the message is . A little bit ragged on multiple different business lines tochl a larger point, disney doesnt miss, even when its not expected to be a great quarter they tend to make or beat the great number. First time in four years they missed on an estimate. By the way, the calendar shift, it was known. So all of these things that are moving around. I think what the street has to get train oddtown idea that disney is a little bit less of an annuitytype business and yes, the studio is strong but its still unclear how much investors want to pay up. Also the first to reach a billion in a year. Thats going to be tough for them to continue on, jon. Quite frankly, i thought it was going to be a beat tonight. I had call spreads on. Luckily they took some calls before i came on thachlt was a good thing. The ones that were deeper toward the money, they were, prior to the 6 drop, it seemed like the feeding frenzy was into the number and there will be a lot of people chasing it down tomorrow. Below that if you get that chance tomorrow or in the afternoon hours, think i you take it. One thing to keep in mind is when everybody had that moment when they started to become intensely concerned about espn last summer, it wasnt because of the numbers. Its because of what bob iger said on the call. How he characterized the trend in subscriptions is going to matter and people have to get reassurance that this very, very herb slate of franchise moves is going to be worth paying up for. What about the Subscriber Base at disney. How important is it for you to see growth there or are you comfortable with declines . Im not focused on espn. I think over time youll see any weakness on espn be strengthened by media in the library in the box office results. I think its a multifaceted company overtime and dependences will shift. Even as people elect to skinny down their bundle, i think theyll start to show growth at some point. Robert, you also emphasize the strength in their box office and even how well the jungle book did in india, right . Right. Like you mentioned, lets not forget, the jungle book was the largest ever that happened in india, so thats a whole new exposed to disney. I wouldnt give up on ditzny just yet. If youre a cal sprel spread investors i dont know. Disney, if it were seven, is down 50 points. A little bit of a hurdle. It is. People have started to warm up to the media group in general. Disney has underperformed. Its been this kind of push pull in terms of the sector. I dont know that its going to weigh. Disney has been a bellwether mostly of itself and sentiment toward media as opposed to the consumer. What would your next player be in back of this . It wouldnt be another media stock, not because i feel burned by disney but the sector rarely gives you that disney with a the different levelers they can pull, thats why e chose this one. The one we thought without be negative was espn. The rest of the levels i thought without be extremely positive. A number of a miss. To reiterate, disney is down about 6 after hours. Also cbs time warner is down 1 . Even viacom has turned down. Well keep an eye on all of it. For now, ivan, thank you for joining us along with robert luna. Well have more on the companys miss and the stocks fallout still ahead, plus your iphone currently assembled in china on the back, but it could soon say made in india. Well tell you why. Anheuserbusch is not owned in merge but thats not stopping the brewer to try to change the name budweiser to america for the summer. Is it even legal . Thats coming up on the closing bell. Welcome back. Theyre reportlely in the process of building a 10 million i phone manufacturing plant in india, there after tim cook telling our jim krachler that the company has its sights set on that country. This is another huge one. Okay. India will be the most populist country in the world in 2022. India today has about 50 of their population at 25 years of age or younger. Its a very young country. People really want smartphones there, really want smartphones, and this year the first year lte tends to roll out. Huge potential. Joining us to discuss us this ed lee. On the manufacturing side kwharks you do make of it . Yeah. Well, i think this is certainly a smart move for apple. If they can do that, thats important for a whole lots of things. They need to improve their margins. Theyre estimating that. Cheaper you make the iphone, the easier you can sell it not only india but around the world including u. S. At this point people who want one have one or people who dont have one cant afford one. The lower the price you make it, the broader its going to be. Theres been some disappointment at the pace of uptake for iphone there. Is there any way to characterize how apple is thinking about this opportunity . No. Thats good question. I think unlike china, the buying power in india is not quite there yet. Its big populist nation, democratic, all that good stuff. Its just the economy isnt quite there yet. So they need to improve that for one thing. What apps can work on is employ people in factories but lowering the cost of the phones to make it easier. The other thing is you make it cheaper. Apple also needs to find a way to extract more revenue out of every user anyway. If i can make it cheaper, i can upsell it. Thats the other side of this equation they need to start looking at or they are looking at as well. Ed, these 200 million hand sets that they think are going to be sold by this survey, that they think are going to be sold by apple and an increase of 7 to 8 , that flies in the face of the recent talk with subsidies going away with the u. S. And verizon and at t, the big ones. Do you think that 7 or 8 is a good global number as far as the 1. 5 billion handsets . Thats a good point. I think you sort of even it out. But, yeah, thats a good point. With those subsidies going away, you know, its just harder to justify those extra costs for the consumer. Part of the way apple has tried to deal with that is own it as much as possible. So instead of necessarily doing it through verizon or at t, it ends up being at t or some other service provider. I think thats going to be important for apple to maintain that relationship. Of course, then at that point, your cellphone is not going to go down. Its only going to go upward. That will be a challenge for them to maintain. What about foxconn. This is an interesting time for the company. They were sharp in japan. Theyve been trying to make a couple of different moves in order to protect themselves as they adjust to apples new future. Also as chinas economy, i know theres a lot of discussion about the economies getting kind of uneven. At the end of the day, their workers are getting more. If they can open the factories in other economies where the level of pay is generally lower, more profits to them as well. Thanks for joining us. Fuller details on this move. Its ed lee from recode. Lets send it other to mary thompson. First of all lets start with the numbers. Company earning an adjusted 15 cents a share, 3 cents ahead of estimates. Sale ahead of estimates at 83. 3 million and same store sales were up. Analysts were looking at an increase of 5. 6 per year. Its now expecting it. Wall street looking for 62 cents a share and on the revenue side, its expected sales of 360 to 370 million. Analysts looking for 371. Again, you see Planet Fitness up over 5 . Back to you. Youre in your Planet Fitness purple, mairy, i notice. Time for a cnbc news update with sue herera. The government is hoping to extend working hours and cut the number ofrest days but the Union Members say that threatens their safety. Democratic president ial candidate Hillary Clinton campaigning at Family Care Center in lexington, kentucky. She said child care costs are pricing them out of sabing for their childrens education. The kentucky primary takes place a week from today. Kentucky derby winner nyquist settling in at pimlico where the second leg of the triple crown will be run in 11 days. His trainer said they arrived early to get him acclimated to the track. And Golden State Warriors stephure is the first unanimous nba mvp, earning it for a second straight season. He returned on monday with a sprained right knee to score 32 points. Im sure you were watching that one, kel. Back to you. You know, when they start at 10 30 eastern time its hard. I did see the recap. He comes into the game, throws up the air ball. Misses the first nine shots and then catches fiefrmt 18 points just in overtime, think it was. I know. Hes an amazing player,ve phen youre not a basketball farngs watching him is like, i dont know. I always thought what if david foster were to write the steph curry in action profile thachlt would be worth waiting for. See you tomorrow. Disney earnings, it missed. First time it missed in five years. Is the changing media landscape to blame . Coming up well get an update from ross levinson. And can do where they fight the devastating wildfires destroying thousands of homes and Oil Production too. Stay with us. Man 1 youre new. 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. Welcome back. Heres how we finished. The dow, the s p and nasdaq all up a quarter percent. A hurdle tomorrow after disneys earnings report. More on that in a moment. The s p was up 25, the nasdaq up 59. There are shares of walt disney moving lower by about 6 after hours. Down about 6. 50 bucks. Well keep an eye on that for you. Albertas premier meeting with Oil Executives to discuss the impact of the ft. Mcmurray wildfires on the industry. Lets get to deirdre bosa with the details on this one. Hi, deirdre. Reporter hi, kelly. Theyre holding a press conference right now. As you said meeting with albertas premier. Were getting some information. She just said in the days and short weeks Oil Production would be coming back online. Remember this fire which devastated ft. Mcmurray took about 1 Million Barrels of oil and crude offline since the fire began. Were also hearing that shell canada is the First Oil Company to start bringing production that had closed down because of the fires back online. And theyre surveying some of its facilities. But for other companies, we spoke with some of the other Oil Executives going into this meeting. I do dont havances. Theyre not sure when theyre going get the green light go in. When they do, lynnlin to whiste conacos president said. Well go back physically to determine it well see if we can start it up. Theyre losing 55 million a day theyre offline. Oil production is the life blood of this kma economy here in alberta. Its already been hit by lower prices. Even though were seeing it trickle back online, theres still a lot of uncertainty that lingers for oil markets for many of these companies and especially, especially this Human Element here. Remember 1rk 00,000 people were evacuated. They still dont know when theyre going to be able to go home. The premier said it could take weeks to even come up with a timeline. I want to show you some of the media coverage. Its a bright side to this story here how canadians are dealing with this adversity. Ive got some newspapers here, local ones and national ones. I say despite fort mac devastation, still saved. One more says ft. Mcmurray is still here and certainly you see evidence of that all around town here in edmonton where many of the evacuees are still here. The fact they have to sates still here tells you about the scale of this. I understand its one of canadas worst natural disasters ever. So going back to this meeting, you know, is there a sense of how quickly, you know, this Oil Production is going to be able to get back online . Reporter well, keep in mind that officials were only able to get into fort mac to take a look at the damage yesterday. And as you said, the city, this is a gateway to the oil sands. It supplies a lot of the workers and operations around ft. Mcmurray. 10 to 15 of it burned down, 2,400 structures. Theres a long way to get the city back up and running but as the premier has been talking about, a lot of the operations are far enough from ft. Mcmurray and the facilities have not been touched. It could be days or weeks before its back online. Thanks for now, deirdre. Deirdre bosa with the very latest. Mary thompson has more. This is a mover. It is. Theyre improving their gains am bearish report on crude inventories as crude inventories rose by almost 3. 5 Million Barrels. So, again, crude pairing some of its gains in the wake of. Gasoline inventories, the bullish report from the api. They rose by 271,000 barrels. They built 710,000 barrels. Again, all of this comes ahead of the d. O. E. s report at 10 30 eastern tomorrow morning. Back to you. Thanks, mary. Mary thompson. How would you like a nice cold glass of america. If budweiser gets its way, you might be asking that this summer. Well explain in a bit. Plus ross lever insoen weighs in on disneys earning. Keep it right here. Youre watching cnbc. First in business worldwide. But its mostly getting to watch your directv with unlimited data from at t. Were setting families free. So they can stream away and not squabble over whos using how much. So go, family. Watch. Freedom. Seize the data get unlimited data when you have at t wireless and directv. 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If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Welcome back. Lets get back to Julia Boorstin. She has more on earnings. One more footnote with disneys earnings. The Company Announced its exiting the selfpublished console games business. It included a 147 million charge in connection to the did continuation of the selfpublished console games business principally infity and infinity charge. Away of publishing its own video games. It licenses many of its characters to other games. Im sure well hear thb 147 million earning charge which begins at 5 00 p. M. Eastern. Looking forward to that. I dont know if this is relevant but in the Electronic Arts report they talk about how star wars expanded their base. I would think disney would rather sell the intellectual property that way. This is presumably part of disnys interactive business cha which has had trouble gaining momentum. How does the report sit with you as we move through the hour . As i say, i got bit on this one, left it out there a little too long, i guess, and they slammed the door on my tail. Nonetheless, i like it right where it is here. I nibbled at it in the after hours here. Not sub 99. Sub 100. Sorry. 50day moving average as well. It basically was as low as 88, right . February lows. February lows. Markets are much worse than they were. If the whole report is they wind some of the optimism, why below 100 and why not going back to those levels . Well, because i dont think the espn numbers were the fear numbers put out by mr. Iger. So i think he was prudent to do that and to be up front with us, however, it hasnt born out. The cord cutting has not been as severe, and thats why i think that we wont see 88 again, but i could be wrong about that, too, kelly. Hey, its a market. It happens. The 2016 election isnt just turning the market on its head. Its changing the name of the kick of beers but not everyone is excited about grabbing a cold america. Its like what are you going to say . Can i have an america or do i want a bud light or bud. No. No america. No way. I think i know whos behind this report . Whats behind the name change is coming up when closing bell comes right back. Its a fact. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. Welcome back. Heres a look at shares of disney, down about 7 now. Sinking after reporting earnings it missed for the first time in five years. Our next guest previously holding executive positions with fox media, cbs sportsline and former ceo of yahoo . He joins us now in a cnbc exclusive from the sun trust conference in san francisco. Ross, thank you for joining us. We know youre involved in the bidding process for yahoo . Youve got a nondisclosure agreement. Well start with your take on disneys big earnings miss. Interested in what you think is really going on here. Well, look, were sitting in the middle of a massive transformation in the media ws. You have shifting audiences, shifting dollars from advertisers and subscribers. I think yet to be seen, disneys been an incredibly great performing company. I think we have to look at a couple of quarters here versus maybe this is just a blip. Obviously look at facebooks earnings, which were, you know, terrific. Google continues to expand. Netflix continues to expand. Were really looking at perhaps some real shifts in both user consumption, and dollars being spent. What do you think is the best way for disney to preserve the earnings power long term . Well, look, i think you have to look at the two sectors as a whole. When i say two sectors, you think about it, i think about it in terms of the Technology Leaders and the traditional media leaders. And this is, you know, the next 24, 36 months is going to be critical. I think we have to look at, you know, reality and hype. Hype maybe being, how fast will this idea of a skinny bundle happen. Some reports ive read in the last couple of weeks say, 15 to 20 million skinny bundle subs within ten years. Thats not dramatic. Right . We still have terrific businesses. On the other hand, if you look at the rapid expansion of Companies Like facebook and even snapchat now, which i think is one of the more exciting companies out there, if i were sitting inside of a media company, i would weigh the risk versus reward of being playing defense and playing offense. I think this is a conundrum that has sat inside the halls of disney and newscorp and fox for a long time. But i think you can clearly see the wave coming. And its just a question of, do you want to embrace this transformation, or do you want to play defense . If youre a football fan and you watch teams that play offense and defense, you know what the outcome will be. Ross, you cite facebook and the amazing momentum the company has. As i look at the way the company is valued by the market, you can actually add alphabet, google to that in terms of the mega caps, at least the market will say youre going tod dominate a tremendous growing share. Does the pie seem like it can get and stay big enough for everybody to eat enough . Or is it going to be like what amazon is doing to retail, where its dominating the growth basically to the exclusion of everybody else . Right. Great question. Look, i think the total ad market is enormous. Clearly the momentum is on the side of google and facebook right now. That said, ill be a contrarian. I actually like where Media Companies sit. I think when you look at somebody like your parent company, nbc, you know, steve burk and Brian Roberts have taken real swings over the last year and theyre learning from it, and theyre learninging that the boxes and the buzz feeds what they can do, and the risk and reward is. That said, think about the reach, the relationship the traditional media has with the ad agencies and the clients, and think about how fast facebook and google are trying to catch them, or catch up. If i was sitting inside the walls of one of those companies, im a digital it sounds like we might have lost we can use our reach and distribution and relationships to grow this new pie of money. Work with the new creators of content. Who all want to be a part of something bigger. Ill quote my favorite artist, bruce springsteen, poor man want to be king, king want to own everything. If you are a new creator of content, you want to be on these big platforms that exist within nbc, fox and cbs and the like. Massive distribution, massive audience, and massive relationships. Ross, thank you for joining us. Great to hear your perspective. Well bring you back to hammer you about yahoo next time. Up next, why you may be reaching for an icecold america instead of a budweiser this summer. Jpmorgans jamie dimon will be on tomorrow. You wont want to miss it. 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. And it keeps my investments fully mobile. Real is 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 in a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Welcome back. The summer barbecue season is right around the corner. Instead of reaching for a cold budweiser, youll be reaching for a cold america. Its apparently being rebranded. Jane . Oh, kelly, sure, its owned by a belgian conglomerate. This summers red, white and brew, budweiser ceo came from regulators to rename itself for america for three months. Will it help the lagging sales . We asked the folks at the most american of destinations, times square, if they like it. No. No . No. I like budweiser. How about budweiser american. Okay. Combine it. Then im okay. I dont know. Oh, my god, thats weird. Are you lying . We dont call guinness ireland. What are you going to say, can i have america . Or do i want a bud light . Or bud . No, no america. No way. Yeah, i mean, its like super patriotic. A good way to get everybody, like, on board. I dont know. Good move. Thats fine. I think its great. When im drunk, i can go, america. Kelly, some are joking that bud light should be renamed canada. Back to you. Theres a few people i would like to have that bud with. That was hilarious. Dr. Jay, are you buying it . I also think it will be great for the olympics. Great for the election to get any edge they can get. But for olympics, drinking an america, good. And america. Anyway. Thau thank you, jane. Time now for fast money. Fast money starts right now. Im melissa lee. Your traders on the desk are pete and steve and dan and guy. A top technician said a major shift occurred today in the market. It could signal the next hot trade. We will tell you what it is and how you can get in. Plus, with the markets moving higher today, three dow stocks hit alltime highs. The names and what they have at in common at the bottom of the hour. Why some traders are betting for pretty big moves. First, we start off with a story of the hour. Shar o