Transcripts For CNBC Closing Bell 20170424

Speaking of d. C. , as President Trump closes in on 100 days, not getting a boost with this market rally. Thats nnenergy. Its the worst performing sector. Theres a debate on whether its time to buy the losers. Meantime, we got a whole in fact, this would be the busiest earnings week in a long time, but its kicking off tonight, we got alcoa, express scripts, and tmobile reporting. John legere is here as soon as results are out. Of course, john, a colorful interview. We look forward to the comments coming up. John legere, jim cramer together. Fire. Payperview if anything. Beginning with wall streets rally, driven in by the French Elections, results there, showing the leader now going into that final election coming up in two weeks, bob, and michelle is in. The market is holding up, all the european banks rallied. Deutsche bank up 11 p close 20 a 52 week high, its amazing. Come over here. We are having huge numbers of stocks with 52 week highs, close to 250 today. Industrial stocks like 3m there on the left, up 1. 25 . Walt disney at a 52week high as well. Dow components today, seven, eight of them hitting highs. Over here, home depot. Another 52week high, do it yourself crowd, how well they doing recently. Mcdonalds in the restaurant group, Consumer Discretionary hitting 52 week highs, the bottom line, guys, look whats going on. Breath of the market is fantastic. 31 advancing to declining stocks all day. No signs of selling off at all. Unurinal. New highs expanding, almost 250 here at the new york stock exchange. Volume is trending to the heavy side, mod ra now. Vix, you know what volatilitys doing, collapsing, back at 11. Doesnt get broader. Everythings up 1 . Guys, back to you. . Celebration of sorts, and it all started in paris. Lets go live there now where Michelle Carusocabrera has a look at what happens next in the French Election process. Reporter what happened in the last few minutes, sara, that le pen, final two con tes tonights faces off two weeks from now has gone on french television, and they are resigning as the leader of the party, quote, uniting the french people, and its not just about taking more time in order to run for president , but its also, we believe, a way to soften her image, her party, started by her father has been quite controversial for her and her fathers positions on immigration, shes her father was antisemitic considered when running the party. This could be her softening the image and broaden the base. Regardless, the markets rallied very sharply here across the european continue innocent because of the results of the election. France was higher by more than 4 . Italy rallied sharply. Germany at a new intraday high. The results here are seen as some kind of decision about what is the future of the euro. Le pen is against the euro. Her opponent is very proeuro. So what happens in france matters to the entire continent and the european project. The reason the markets rally is because they are pretty convinced that he is going to win, ahead in the polls by a large margin, and everybody who supports him is crossing fingers at this point thinking its a done deal. The markets act like that, but a lot can happen in two weeks. Guys, back to you. That is for sure. Thank you very much. Well talk to you next hour as well with any new developments. Are the markets getting too excited here . Too quickly . Following yesterdays electioning results. Lets get to the Closing Bell Exchange for this monday. Joining us, luca from asset management, next to steve grasso fr , and Rick Santelli from the cme in chicago. Steve, all i have to look at to see the day were having is the volatility index thats plunged today. Everybody loaded up on hedging last week, and at the 15 on the vix, and today, we got down into the 10 handle here. Waiting for the event, and, you know, you guys started off on the show saying exactly what the interpreting now. Look at the intraday. It does not tell the story. You see the fluctuations. Basically, on what is happening over the weekend and what we look forward to or nervous about in the marketplace. Yeah. Having trouble with the microphone. Hopefully well fix that. There you go. Now we can that wasmy best stuff. I dont know that i can redo it. I doubt it. The marketplace was definitely preoccupied with a handful of issues, and the French Election, one of those key issues that the market was really eyeballing. If you look at the intraday on the tenyear, its not telling the same story as the riskon trade seen in the equity markets, so for me, leads ple to believe youre better off selling the pop in the ma crow market and s p. Theres a handful of things to be worried about. Theres going to be broad sweeping discussions on tax reform. No specifics thats going to really make the market move higher. Youre right. The first answer is better, the lost answer. Well never know. I got the point, what about you . Do you share the optimism we see, a more than 1 prkt rally here for u. S. Stocks . On this idea that if they do win, and he is leading, as michelle said, by more than 20 points, they stay target for now . Yeah, i think so. Whats really positive that you are seeing a big turnout in the election so i think the probability of le pen winning second round a low, but we see much more upside in euro and asia than the u. S. Expectations are higher. We feel that the upside is mainly europe and especially in emerging market asia. Rick, what is your read on the market response . You talked about the safety trade. Thats off. Golds down, interestingly, the dollar index is lower. The euro stronger. That makes sense there. Yields have gone up, the treasuries here. By the way, get a tenyear greek bond for 6. 5 . Theres a bargain. Yeah. Bargain at any price, right . I think steve nailed it. Now, when i look which time . Especially through the prism of the dollar index down so much, yeah, you know, 12, but it doesnt steam like it really is the huge risk on trade until you look at equities, but looking at interest rates, its a flattening event. Put it in perspective. The ecb says, hey, guys, anything goes wrong with the French Election, count on us to provide liquidity. Nothing yet has gone wrong with the first round of the French Election, so what happens . Rates go down in italy. Rates go down in spain, rates do down in france. But they go up on the other side of the spread, bund yields. Up on treasuries, but bunds, treasuries both up. The currency that does better is the euro. Okay. So right there, theres an issue. You want to pay particularly close attention to that 99. 17 mark in the dollar index. The low from march 27. A whisper below it. On the yield side, we shoot up to 232, 31, 30, and here we are back at 227. Since we closed below, we have not closed above it. Huge area of significance. Listen, i dont know whats going to happen in two weeks with the French Election, but i know one thing for sure, just because we have an election that didnt take the worst possible outcome in france, doesnt mean that frances economy is hugely better today or the rest of europe. I think the long end is going to go right back to focusing on growth, the short end, not a pop in yields, dropped in price, holing that drop more than the rest of the curb because the fed continues on the track. I think this is what we have to work with. No easier setup to monitor. Use pivot for socks, 227 for bonds. 9917 for dollar index, and see how it pans out on the closing basis this evening. You forgot another key level that everybodys watching today, steve, and that would be the nasdaq inching closer and closer to the 6,000 level. Significance of that ahead of key tech earnings later in the week . Well, when you look at the market place, you know, you started out saying that energy is the worst performer. When people look for growth and risk on trades, they reach for technology companies. We saw energies, financials, and health care actually under perform, and we saw financials in Health Care Just rally back, and energy lifted positive today when you still have Oil Struggling to get over the 50 benchmark in crude. One thing thats constant is the technology space, has been able to sort of weed out and roller coaster this marketplace and still wind up, and although the dance card, technology as a whole is where people go for growth. Yes, they do. Gentlemen, thank you. Appreciate the thoughts on todays impressive market action. Worldwide, as a matter of fact. Well see you later. Lets see. We got 50 minutes left in the trading session here. Off to a good start for the bulls. The dow right now, up 237 points, and that vix, i cant just have to keep pointing it out. That is its plunging today. In fact, were back with a ten handle now. We were below 11 right now on the vix. We have big earnings to talk about after the bell, alcoa, express selfincriminacripts, a. Ceos of express scripts and tmobile speak about possible Merger Acquisition action in their various industries and a lot more still to come here on closing bell, youre watching cnbc, first in Business World wild. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov but weve got the get tdigital tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount dow up here, here are the stocks that make up the Dow Jones Industrial average, interestingly, you dont have everybody higher today. Theres walmart, verizon, disney, and nike lower, but the financials, jp morgan and Goldman Sachs lead upside today. Adding the most points to the dow as well. Goldman sachs, 44 points on its own. Treasury secretary made a surprise appearance at the White House Daily press briefing. Ylan has more on that and the big week ahead in washington. We learned that mnuchin and gary cohen head to capitol hill tomorrow evening to talk tax reform with republican leadership. The house speaker, ways and means chairman, Senate Majority leader, and the finance chairman will be there. Nbc reported that President Trump wants to keep the 15 rate on Corporate Taxes, proposed the campaign trail, no word, though, yet on how he plans to pay for the cut, of course, expect the to make broad principals unveiled on wednesday. Mnuchin said this afternoon tax reform is a critical part of the agen agenda. Working with the president over the last year on the economic plan in regards to creating growth. The president is determined to get to sustained 3 growth or higher. Y we are working on reform, and job creation. Reporter all of this comes amid intense negotiations to keep the government up and running. Fridays the deadline for reaching a compromise. The big stickingborder wall. They insist money to pay for it, and democrats say, no way. Back to you. Do you sense is there a sense of urgency so this or is that silly . Its only monday. We have all the way until friday before the deadline. Not all the plow makers come back until tuesday. Right. There is a sense of urgency in order to meet the deadline friday. Theres not a lot of time on the calendar, and lawmakers have work to do before reaching a compromise on government shutdowns, not even beginning to talk about tamt x reform or hea care. Any democrats on board, or does the white house have to con pitch late in the end to get democratic votes for the border wall increase or make a deal around that . I mean, how does it look . The white house needs support from democrats in order to get a spending bill passed through the senate, so there has to be some negotiations, some dproms there, there is a possibility that the white house might say, well, if we get Border Security money, that might count as money towards the wall, and this would help them save faith and help the democrats they say did not pay for actual physical structure along the southern border of mexico. Well see how it all pans out. Oh, yes. Could be a very, very interesting week. Rest up. Thanks. A little over 40 minutes to go before the closing bell. We have a pretty consistently strong rally, but the dow up nearly 240 points, watching the nasdaq level carefully. You see more than ten points away from nasdaq 6,000, financials, industrials, technology all strong today. Wonder what color hat we get for the nasdaq 6,000. I dont know if theres hats. Im sure. Dow hats. Ceo of express scripts and tmobile after the earnings report. Stay tuned for that. Another Airline Incident on American Airlines. A different outcome compared to uniteds debacle. Well give you the details on that next. Best day for stocks since march 1st, the last time the dow and s p set record highs, nasdaq closer to the 6,000 mark for the first time ever. And stocks here, the dow, s p, and nasdaq, though, with todays advance are erasing aprils decline. We are now positive for the month. This on the reaction to the french reaction votes. May get volatility. See how it plays out. Meantime on the heels of last weeks United Airlines pr disaster now comes American Airlines embroiled in its own viral mess. A different outcome, though. Different outcome, bill, but speaks into the general feeling out there about the airlines and how they treat customers needs evaluation. This is the video seen over the weekend, and in this case, it was a passenger who was trying to get on board. There was disagreement with the staff, and then another passenger who is involved in an altercation with an American Airlines Flight Attendant. They investigate this, that Flight Attendant removed from duty. Less happen two weeks after this video shot by people on the united flight of dr. David dao dragged off a flight less than two weeks ago. United is reviewing its bump passenger rules, expecting new rules by april 30th. The lawyer who respects dr. Dao and the woman involved in the altercation over the weekend says Airlines Need to be held accountable. The Airline Industrys favored. The Airline Industry is the only one that i know of that has been allowed to overbook. Not going to the dentist to be told, we cant fix that root canal today. We overbooked people at 4 00. Separate from the cases, looking at shares of both united and american, stocks not impacted today over the latest incident over the weekend, but, guys, looking at the stocks, the big question for the entire industry, what happened when it comes to overbooking flights . Does that somehow get regulated away through actions in washington, d. C. . Thatll play out over the next several months if anything changes at all. Oh, just crazy how they overbook. See jimmy kimmel . What if they overlooked at restaurants, and you order your food, but you have to get out because next people are coming. Just crazy. By the way, flying cars, maybe that solves the airlines woes here, phil. Larry page, he of google fame, puts a closure to flying cars, yes . I love this video. This is awesome. I would love to go for a ride on this. Id love to fly one around. This is from the company kitty hawk, the kitty hawk flier, a startup, larry paige a backer. Its less a car, guys, and really more of a aircraft, a person flying a drone, but the video released this morning, its getting a ton of interest, and for good reason because kitty hawk hopes to sell this by the end of the year, have it go on sale, no price set yet. I bet you a lot say sign me up, but what ultimately goes on sale, if before the end of the year is far different than what you see here from kitty hawk. So many questions about this, phil. First of all, do you need a pilots license to fly it . Not if its an ultra light. Thats under the guidelines for ultra light aircraft, you dont need a pilots license for those. They are popular. Thats what this is being developed under. Now, lets see what it would be when it ultimately goes on sale. A lot of questions. More questions than answers at this point. Theres no doubt this is very cool video in terms of what the possibilities are, and i think a lot of people would say, look, if i can buy one of these for 10,000, id do it. A lot of people would do that. I can see you flying one. Yeah. Would be safer than me driving a regular car. So ive heard, yes. The question is, phil, is this even allowed . Any regulations . Dont we need our own new air Traffic Control . Understand with the way ultra light aircraft works, you can fly them, no pilots license, but the rules are such you fly them in very, very rural areas, not in suburbs or cities. Regulations dont allow that. Yeah. This is developed under those rules, lets say, ultimately, if they manufacture and sell it, what the rules and regulations would be. Quicker to get from cnbc headquarters to the new york stock exchange, thats for sure. Thank you. See you later. A New York Times report says other companies are working on it too, uber, the next frontier. It is. 34 minutes left in the trading session here. The dow up 233 points. Just joining us . This is a worldwide equity rally. Started in asia overnight, especially started with the euro on sunday. Yep. After the french leelections he and continues this afternoon. Coming up, ceos of express scripts and tmobile with instant reaction to earnings reports after the close tonight. The nasdaq has been on fire this year as tech stocks fuel the 6,000 level. Up next, whether there are still opportunities in the tech stocks for investing. The power of innovative thinking. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. On a perfect car, then smash it into a tree. Your Insurance Company raises your rates. Maybe you shouldve done more research on them. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Half hour before the close. Dow up a strong 234 points, s p up 29, again, best performance for stocks since march 1st reaction to the French Election yesterday, the nasdaq inches close to the 6,000 level for the first time ever, keeping our eye on that. The russell 2,000 index, small caps doing the best, and medical supply maker c. R. Bard leading everything higher, dickinson is buying bard, valued at 317 a share. A 25 premium over the Closing Price friday, clearly a 25 reaction there. The acquirer, going the other way, down about 4. 3 , bill . All right. 30 michbs left in the closing session, a good rally day now, and the nasdaq, this close to 6,000 on a composite. Joining me on the floor of the new york stock exchange, you mentioned in the past, your sisters famously one of your investors. Yes. How soon did she call you . She has not said anything, shes in kentucky. Not paying attention. She has no idea whats going on. Tending to horses or whatever, and im hoping she stays there for a while. So you have a smile on your face. Tell them what you told me when i walked up, good to see a smile on the face. Ready to get back and short the market again. You think absolutely think that, you know what . Were probably not at the point where ill do it, but i think that theres another positive round of Something Like that, not related to earnings or Economic Conditions in the u. S. , geopolitical positive news, i short it. The market is still way overpriced, and i think there is an opportunity. Are there some sectors more vulnerable than others . I think technology now. Really . Yeah. Im starting to see a lot of these stocks getting very multiples are, you know, i know that thats not what people look at in the tech sector, but some of the multiples are just they are almost off the charts now, so im thinking that that might be a little overvalued. Okay. All right. Tell your sister i said hello when she calls inevitably. Probably right now, actually. Well talk more tech in a moment, but time for a cnbc news update now with sue. Hi, sue. Hi, sara, hi issue everybody. The university of california at berkley facing a free speech lawsuit over conservative commentator ann coulter. The College Republicans filing suit which accuses University Officials of restricting conservative viewpoints. The suit was sparked by the universitys decision to cancel coulters speech. It was supposed to happen this thursday. Afghanistans chief secretary resigns today coming following an attack that killed more than 140 soldier and personnel and military base over the week. The resignation coincides with u. S. Defense surprise trip to kabul. The Trump Administration launching fresh sanctions today against syria. The target, manufacturers believed president assads use of chemical weapons. Look at this. Its almost like a scene from a hitchcock thriller, the birds, a flock of seagulls invading the coliseum yum in yesterdays game. One fan toughed it up in the upper deck shielding herself with an umbrella. As lost 111. Thats a little creepy. Anyway, thats been a problem for a while, apparently. I mean, obviously, you dont get sea gulls flocking like that unless theres food somewhere, so they tend to have food at baseball parks. I wouldnt sit there with popcorn or hot dog or anything. You have to do with the lady, get the umbrella. Well, why, for many reasons. Many reasons. Thank you, sue. Yes. Youre welcome. See you later. You mentioned tech with peter, and the nasdaq within striking distance of 6,000 mark, and joining us now to talk more about techs runup and how far the sector goes from here, josh spencer, a Portfolio Technology funds oends big cap tech names like alphabet, and sales force is the biggest exposure. The nasdaq, josh, up 11 so far this year. 22 over the past year. Have you been surprised to see the strength in lights of the election when many worried about the trump policies and how theyd impact big tech . Well, thanks for having me on, and i have had a little bit surprised at the sheer magnitude of the strength. I think it reflects some of the fundamentals seen at the companies, and if you look across the board, tech fundamentals are good with semiconductors so theres a good backdropment im surprised at the magnitude. I dont know if you heard my interview with peter costa here just now, trading on the floor, been on the floor here since 1981 seeing a share of bull and bear markets, and hes of the opinion that technology is vulnerable to be shorted now because of the multiples that hes seeing not thinking they are sustainable. What do you think . I did hear the interview. I think it is a time to be a bit more selective with the stock picking. I still see very attractive companies, Companies Like sales force, workday, ultimate software, and a lot of companies in the growth sector of software, i think, have a long runway, even from here, but there are other areas where i have been taking money off the table, and it makes sense to Pay Attention to valuation. What are you expecting in terms of earnings . Well get a few of the big ones including alphabet later this week, amazon, microsoft, and do you think they can live up to the higher multiples . By and large, yes. I think the reason tech has done so well is because the fundamentals are good. Some of the trends that we talk about, like cloud computing, growth of the internet, the penetration of tech in the new areas, these are real tangible drivers that show up in the company fundamentals, and i think we will see very good results for most of the companies. I think its incumbent to ask, but i know what the answer will be. Does nasdaq composite 6,000 mean anything to you . We remember hitting 5,000 the first time in 1999, and it took them a decade to get back it that level essentially again. What about now as we cross another millennial mark here . The round numbers are interesting, of course, and the company by Company Stock prices really are what drive our performance and were looking day by day at where companies and stocks are. Index is a different matter. I do think that comment made about the last time they hit 5,000 back in the tech bubble, coming out of that, i frankly think was very good for tech to go through that period. It really led to a lot of rationalization and companies being leaner. You saw that throughout the final crisis. Tech, arguably, came through much better than any other industry, and i think over the long arc, its positioned for the outperformance that its had for last tenplus year. Where are you on apple . The best performer in the dow so much this year, up 24 . I have not owned apple, and its been a miss on my part. I favored other Companies Like sales force and alphabet and workday. I have a lot of respect for apple as a company. I thought it expensive considering that its growth would slow given a saturation of the smart phone market, but i really commend them on what theyve done. It is a fantastic company. Do you think that the efforts by the Trump Administration to alter the way visas are issued affect the Technology Industry to any great degree . I think itll have some impact potentially on some of the outsourcing companies in the i. T. Services sector. That has not been a focused area of ours in our fund, and i think maybe the use of those visas will decline. All right. Josh spencer, good to see you again. Thank you very much for joining us today. Thank you so much. You bet. 23 minutes left in the trading session here. Its been one of the days, the rally took off first thing this morning. Just stayed. Hit cruising altitude, and we have not altered that to any great degree. The dow up 234 points right now. The breakem up battle cry for monopolies hits google, or alphabet to its friends. A writer and producer that picked up the antigoogle banner. Buzz about that one in the time, and after the bell, earnings from express scripts and Ceo Tim Wentworth breaks numbers down with us first here on krrks nbc on closing bell. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. We rbut we are not victims. Ack. We are survivors. We are survivors. We are survivors. And now we take brilinta. For people whove been hospitalized for a heart attack. We take brilinta with a baby aspirin. No more than one hundred milligrams. As it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a Clinical Study brilinta worked better than plavix®. Brilinta reduced the chance of another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor,. Since stopping it too soon increases your risk of clots in your stent,. Heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily,. Or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers,. A history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding,. New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. Rally continues, 227 points, better performer today percentagewise is the russell 2,000. Investors feel its the better end of the bull market, of course, and its one of the secondary stocks doing well, maybe were better off. One that took often after the election, promises of hope of tax reform, companies that would benefit the most. Meanwhile, whole foods getting a boost after the owner of albertsons held preliminary talks with advisers about possibly making a bid for whole foods, up 2. 5 now, up more than that earlier. The Financial Times says no formal offer yet presented. Albertsons tells cnbc they do not comment on speculation. Whole foods has nothing to add at this time, but the market has spoken. Very excited about this one. Remember, this comes off the heels of us learning Jana Partners took a stake, and jpmorgan wrote last week what the bigger play there might be m a whether its whole foods buying a private grocer or bought out themselves, theres k kroger rumors, you name it. Makes sense to merge in general, and if there was a bigger more nationwide scale, it gets that into stores around the country. Grocers scrambling now anyway to achieve scale. On the whole price spectrum, which whole foods is higher. At a time of food deflation. Exactly. Financials on a wild ride since President Trump was elected. Landon is looking october why regional banks in particular are doing so well. Landon . We are seeing the financials soar today. Sector up 2 , regionals leading the way. Up over 2 today. Up 4 over the last week, and as you mentioned, its been a wild ride for the sector, the post election trump rally was followed by a slump after Inauguration Day on concerns of certainty about tax and regulation policies, but First Quarter earnings tell another story, especially when it combs to regionals. The reason . Regional banks dont rely on trading revenue, and loan Growth Numbers are not as bad as many thought. U. S. Bank corp. , reported an increase in loan over loan growth does not expect the slow down for the year, and another region pnc reported a solid kq , and regions financial and comerica beat. More reason for optimism. Eric compton noted Rising Interest Rates and expectations that a Corporate Tax cut is just around the corner, boosting the bottom line. Back to you. Thank you. I welcome you as well to the afternoon here. Thank you. Morning and night. We got it covered on cnbc. Second time i learned about banks from landon today. 15 minutes to go before the closing bell, and were still looking at the dow, up 230 points, s p 500 up 26, more than a percent, and the nasdaq up 1. 3 earlier, hitting an intraday high. T russell doing the best of the bunch. As we approach President Trumps first 100 days in office, how certain market sectors performed sin election day, and Inauguration Day. Energy has been the worst performer, and well look at both sides of the sector when we come back. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Nasdaq on pace to close on a record today, and we are a tapin putt a i way from nasdaq 6,000. Was that a golf term . It was a golf term. We have the latest. I was actually thinking tap in touch like a layup myself, but its not been a layup for the nasdaq to get to 6,000, but the moves today, broad rally as noted earlier, today, small caps, russell leads in percentage gains, but this year hast really been all about the nasdaq 100. Also chips and bioteches doubled gains here in the first five months of the year. In fact, nasdaq 100 at this point gained pointwise, this year in five months what it gained in all of 2014. Apple the big reason why, responsible for a quarter of the gains, but apple has actually been fairly flat here in april. Look at the alltime highs, 250 new highs on the nasdaq, and about 90 of them are alltime highs including the big usual suspects, including facebook and google, but also look is a new cycle in memory chips and the gear makers like Lamb Research benefit from that as chip makers buy them. Hasbro at the alltime high, better than expected earnings, transformers helping out there. Priceline, and dave and busters also an alltime high. Back to you. All right, thank you very much. While she was talking, art cashi initiation said the market on close orders you like that . I did. We can do it again if you want. What did he say . Buy side to 600 million, and i mean, weve seen a rally today, so i dont know whether theres an impact on the close, but well see as we go towards the close here. In the meantime, five days away from the president s 100th day in office, scene while the Broader Market ha a nice run, one sector left behind, thats energy. Its been the worst performing sector since the inauguration, and down almost 8 . So were asking, is now the time to buy, or could we see more downside from here. We have a debate. Sun trust robertson, and kyle cooper, so, it looks like youre bullish on oil prices and like the emp names. Why with such an underperformance even with the French Election. Thanks for having me, sara. Despite being down, the first 100 days, we think theres a clear path over the next coming weeks, one on the continued opec and russia cuts, two, on the lack of u. S. Supply response, and then number three, conventional production in the world, starting to roll off, now that were up at the three year mark at the peak. Combination is those three leading us to a clearer path in the coming weeks. Kyle, you think, i mean, looking at the price action of oil itself, which you are still bearish on. You know, that does not always correlate with the companies themselves, so you feel as long as oils lower, you dont buy the stocks themselves . Inability of fruit to hold above 50 is disconcerning to the commodity itself, and, actually, i think i look at the data differently. U. S. Oil productions are up over 800,000 barrels a day from the trough that was made last year, and the eia has Oil Production up 120,000 barrels in may. Every week theres increase in Oil Production, and companies themselves say due to efficiencies and other improvements, they are looking for improvements as well. Neil, are you surprised theres not been a benefit in terms of Company Action to the deregulation push by this administration . Rick perry in there as Energy Secretary and has made deregulation and new pipelines and more energy and u. S. Drilling and oil exports a key priority. It is a little surprising because of the regulations going away, certainly makes things a bit cheaper to brindrill, but offsetting that is oil prices. Theres tug and war hurting that, so as a result, the regulation loosening has largely been offset by some of the higher oil service causes. Before we go, neil, what do you buy here . Make a meaningful to investors, if you, you know, want to commit money to the sector underperforming, where do you put it . In four names, and we like to think they are well levered, oil, two in the bacan, two in the basin, which would be diamondback resources and pioneer natural resources. We think all four could have great room to run here in the coming weeks, around opec cuts, a likable cut, once again, on the may 25th meeting. All right. Very good, gentlemen. Thank you. Neil, kyle, good to see you both. Appreciate the thoughts on energy today. Thank you. Meantime, we have a news alert on the fcc. Julia is stepping in with details there. Whats going on, julia . Well, bill, fcc chair is expected to unveil strategies when it comes to Net Neutrality wednesday. He is speaking at 1 hirt p. M. At the museum in washington, d. C. , and dow jones reports there hes expected to give a speech on the future of interpret regulation, of course, pai, chair of the fcc, is expected to take very much a light touch approach and perhaps roll back some of the Net Neutrality regulations put in place under president obama, guys, back to you. All right. Julia. A lot happening on wednesday. What more could happen . The trump tax reform. Perfect storm. Less than a week before 100 days. When we return, the closing countdown in a moment with the dow up 219. After the bell, earnings reports, tmobile is out. Combing through numbers with the always colorful ceo, and talkme next hour of closing bell, youre watching cnbc, first in Business Worldwide. Flr u its your trade. E trade. Start trading today at etrade. Com last two and a half minutes of trading here, but, really, if you just look at some of the charts, you could guess how the French Election went yesterday. The vix, volatility index, as i said earlier, see the hedging going on late last week came off in a big way this morning. That indicator down, now with a ten handle, was at 15 last week. Big move there. Look at the european response. The euro against the dollar. Thats a fivemonth high that we saw achieved there, and watch the trading pattern there. Moves up, and it continues sideways. Youll see that with the french the, yes, the french market, as strong as our market is, 1 gain for the major averages, look at the cac, up 4 in todays trade in paris. The dow, itself, same kind of a trading pattern, up more than 200 points on the open, and just held that gain through much of the day, and bob pasani, watching the nasdaq now because not only is it a record close, but were this close, now, to nasdaq 6,000. A lot of new highs, tech new highs today, microsoft, adobe, Land Research hitting new highs. What this market showed us was there was a risk premium with the French Elections, and now that its gone away, the question is, what other risks are out this. Earnings, but those numbers come in good. Banks came in good. Industrials came in good. Illinois tool works historic high, other Companies Like dover, Stanley Works raised guidance last week, so so far that risk, i think, the earnings risk is receding a little bit. Okay. Z Economic News is crummy in the First Quarter, but we talk about it a long time, First Quarter numbers bads bad for a number of years. Second quarter numbers will be better. May be right. Its a risk. Upside risk on earnings getting better, Economic Data maybe betting better, and then, of course, trump agenda. Is it going up . Is it going down . So far, its moving sideways issue and every east just holding the bets right now. There is a lot of reasons to feel right now that some of the risks out there are really to the upside for the market. North korea, talk about geopoliti geopolitics, theres a major one not resolved at all. So big rally day continuing what started overnight in asia and into europe, the dow up 72 points, and theres a lot of interview, news on earnings, and ceo interviews with john legere and Tim Wentworth coming up. Here we go, closing bell, sara eisen in for kelly evans. What a relief rally, around the world, and ending up here on wall street today. The dow finishing higher, and pretty much all day above 200 points, closing a percent higher, s p 1 higher, and the nasdaq closing a record high, up 1. 25 . Finishing higher, 1. 3 . Reaction to the French Election was sharp, and it was positive across the board. Today kicks off a busy week for earnings after the bell, starting now, julia brings us results from tmobile, and jackie is all over alcoa for us, and exclusively from the always outspoken ceo of tmobile, john legere. Dont miss what he has to say about the quarter and industry at large. Thats coming your way, but first, the rally, joining us today, cnbc commentator and cnbc coal columnist, and michael from ubs. This is so santoli, describing the day, a gap up and sitthere pattern, mechanical bounce in u. S. Stocks. I have to get you know how it is. Looked, seemed like a calibrated move. I think you have the s p up one point, and the dow up, and not saying theres anything wrong with it, it makes a lot of sense. U. S. Markets up exactly half as much as the european markets up today, more than 2 , and i think it was just a little bit of a relaxing of the tension. It makes sense. Again, i dont think it proved necessarily that this is up, and up and away from here, but the last time we did this, they flubed the chance to break the market down, 1 of the alltime high in the s p 500. Hard to get too negative. Changing character, the sectors working, values, cyclicals doing well today. That means a character of the market might be changing. What do you think of todays rally . Well, i thought that this means the dominos are not exactly going to fall. You know, theres brexit. Trump. This means that most probably may 7th, we are not have an antie. U. , antiimmigration if the follows are to be believed. We had an election, so we saw that he beat her out, and i think well see enough of a ground swell remaining candidates that are left, that were knocked out of the race endorsed him. Came back, and came back for him. Exactly right. But youre right, its never over until its over. There was a confidence boost in the market, and saw it follow through in a number of sectors. One sector, hearing that sucking sound is energy. Thats been down significantly out of all the sectors, well see if its able to turn around. Its something trumps able to do. Oil below 50 below a barrel today. Is there any Lasting Impact for u. S. Stocks and what we saw in france that made this move to them . Yeah, thats right. It is deja vu all over again. Calendar events, long points, certainly more in europe than today, and i think thats because theres more belief that the currency in the euro is stronger. U. S. Investors could get more interested, and european investors, and i think when you look at todays market and you see small cap outperforming and financials and cyclicals, it is rem necessary sent of the brexit move so you have to give that some credibility for that to sustain for at least a little while. Mike, when you say youre watching the rotation yes . People point to the nasdaq inching to the 6,000, still notching a record close as a sign a few of the big cap tech names continue to lead the market. How healthy is that or not . I think if its the only thing working, thats when you worry about it. I think we were getting to the point in the last several weeks when virtually thats all that was working. We talked about 2015, up 17 or 18 year to date, and you can find other fanglike stocks up that much, but as long as you have the rest of the market along for the ride or beginning to outperform right now, then its okay. Nasdaq 6,000 says a lot of things like its up 20 in 17 years, say its gone a long way, or, you know, just does what its supposed to do. Nasdaq to s p ratio, ratio of the indexes is at a post 2,000 high right now, so hopefully the rest of the market should do catchup here. Huh. Would wow buy technology . Yes. Yeah . Absolutely. I mean, participating in Tornado Warning the high profile companies, or we have bought on pullbacks, own facebook, google, own apple. Okay. Etweve been participating i the rally, but i think on pullbacks they have not pulled back. They have not been able to jump in, participate, and i think that, you know, weve seen the call for a pullback, being am biketous over the past several months, everyone called market overbought, and, really we have not seen pullbacks, theres been stock by stock, but not in general. What do you say about washington, its an important week to see whether Congress Keeps the government open by the friday deadline. Well get a peek at the administration east plan for tax reform on wednesday, and theres still murmurs of health care reform. Yeah. Whats going to be the Market Impact . Yeah. Well, i think there is a phenomena of lucy taking the football away from Charlie Brown here a little bit, so investors have a bit of a grain of salt they take with the promises of tax reform, health care, and having said that, theres an understanding that if they want to, they can use the scoring to get something done, and i think everyone considers it basically presumptions that republicans will cut taxes along the way somewhere. Theres less of an impact to the market now than there used to be, but its baked into the market. Markets learning to be patient. It is. Coming out of the washington here, so here we go. We get the first of the earnings reports out. This from express scripts, how do they look . Hi, guys. Well, pretty inline quarter in the First Quarter, eps at 1. 33, and average estimate of 1. 32. Revenue at 4. 65 billion, versus the First Quarter, and 2017 guidance up a little bit for eps, up to 6. 90 to 704 a share versus 68220705. Big news, concerning the companys relationship with anthem. Its biggest customer, and now we know they were in a lawsuit where anthem was saying that express scripts owed it 3 billion. They disputed that. There were risks in the end of the contract, may not retain the relationship. Looks like they are saying this might not happen, at the enof this 2019 contract, they look for another partner to replace them there. That could be a huge impact this is the biggest customer. Looking to learn more about this. We will be talking about Ceo Tim Wentworth at 4 30. Currently, shares are halted, but could have a big impact there. Inline quarter, but big news on the biggest customer, guys, back to you. Stock unchanged from close as they hold it with the news coming out. What do you think . Well, i think the nudging of guidance is basically the main take away. When it comes to the guys, its a much more of a big picture story. Just the kind of the Business Model going to be a little bit picked away around the edges, not so much what they produced. That an tell, that could be key. Relationship was key. Why the stock underperformed so much down 6 in three months. Thats huge. Well talk to the ceo about that. 17 of the business. The stocks been off, like, 30 because of it. They find someone to replace anthem, thats monstrous. Ask tim about when on air here in the next several minutes. Julia, tmobile is out. How do they look . Thats right, bill. Tmobile missed earnings by a hair, 5. 95 billion, versus expectations of 6. 92 billion. 80 cents per share, gap earnings, not comparable with the year ago numbers. Right now, tmobile shares are unchanged because stock haltsed. Stock set to resume at 4 30 a. M. Eastern. The stock announced they have 1. 1 million customer net additions. Thats lower than the 1. 22 million that analysts had been expecting. The average revenue per user is coming in higher than expected. Both the postpaid and prepaid average revenue per user. Guys, back over to you. All right, julia, thank you. The stock is halted or held as they say in the afterhours, but we have to talk now in the exclusive interview with tmobiles Ceo John Legere with tim cramer as well. Give us a sense of the quarter here, expectations that wall street sets up, some you beat. Some you miss. What did you do in the First Quarter . Well, thanks for having me on. I dont know what Company Julia was talking about. Lets understand what happened. By the way, happy fouryear anniversary to tmobile u. S. , four years old next week, and what we announced just a few minutes ago was Customer Growth and financial growth 1. 4 million net additions, thats 16 quarters in a row of over a million, 914,000 postpaid net additions. Thats five quarters easily being the biggest, and 798,000 postpaid phone nets. Now, we put that in perspective. Verizon announced negative 289, and its our estimation we took over tr 250 of all the growth. Down basis points to 1. 8, the lowest its been, and 386,000 prepaid nets. Quickly. Service revenue and total reeve knew grew 11 . Reminding you, no other kmaep in the Wireless Industry grows Service Revenue. We are just 2. 7 billion, and thats 21 up year over year. We exclude perspective gains. Earnings per share was actually up 46 , and the cash from operations grew by twothirds to 1. 7 billion. I couldnt be more thrilled about the historic set of results, especially if we get a chance to talk about, this is on the heels of getting the mother load of spectrum in the low and bad spectrum option. We just got the conference call. Love this. We did. John, let me ask you. Midquarter looked like verizon realized, looks like tmobile runs away. They gave a big price cut. Did you notice anything in your quarter that indicated that people had stopped or rethought it or going back to verizon not leaving at the same pace . Yeah, yeah. Jim, we have 13 quarters in a row horded positively with verizon. They had a toe ltal loss of 3250 customers. We noticed a change in the trend against them, but for the whole quarter, postpaid with verizon was 1. 7, 1. 9 in the industry. I want you to understand that in all of 2016, the postpaid phone gains for verizon were 209,000. Take the 289, they have not gained any customer since 2015 or grown Service Revenue since 2014. I think verizon has real problems, and one the bigst ones, of course, is tmobile, which im proud to be. We know sprint is aggressive. I think when you talk about dumb and dumber, you never talk about dumbest, never add in sprint to the list. Are they take anybody from them . I think they offered pretty low rates too. I refer to dumb, dumber, and yellow. Sprint is working very hard and aggressively to turn things around, but the size of the duopoly is the prize were going after. As i said many times, p50 of nt additions come from at t. Heres the stat to like. This quarter, we had 29 of share Revenue Growth in the whole industry. Look at share, add metro pcs, we averaged 35 and as high razz 40, taking all of them together. When you add what happened in the spectrum option, they are all in big trouble. Well, lets talk about the spectrum option. Going to 5g, any of this good for five years, the current battleground in the next 18 months . Jim, we have to give the world a test of 5g, people dont know what ifs because they have been harping on about how its going to be the big next beachhe beachhead, and all that means is that better matters only if they figure out a new game because they are dead. 5g on a wireless mobility standpoint is 20 is the20, the auction that took place at the 600 megahurts, taking 45 of all the spectrum, by the way, covering all of the United States, we have more than three times the low band spectrum of post date subscriber than verizon does. Thats the game played. Ill talk about the utilization of some of it in 5g because it is usable, but advanced 4g has a lot of lengths to go. Its going to be led by tmobile. Talk about the games, you cant comment on specifics, but, clearly, companies while doing this auction were banned from having merger talks. Thats up on thursday. What merger frenzy do you expect . Thursday at 6 00 p. M. This is very important. What people need to know is that there is a series of things between industry players awireless, et cetera. That really do make sense to be thought about from a substantiate point of share holder and customer value. Thats number one. Number two, its been over a year and month since anybody could talk, number three, a number of players admitted they do not have a full set of cards in the and and they have to do something. Thats not necessarily tmobile, and, forty, theres an expectation that the Regulatory Environment is more favorable towards these deals. I stick with what i said before, vertical and horizontal integration makes sense for customers and shareholders, and for the country as well as other adjacent industries of people to get wireless eyeballs. I go into this from a strong position of brand and strength and growth positions to see what options there are. You and jim will do mad money tonight, we look forward to that for a long form interview with you. What guidance you providing here . Your competitors followed you in the unlimited category and other services, what do you tell shareholder now in light of the report about the future . Right. And, of course, bill, we dragged them kicking and screaming into the unlimited world by design. They did not expect to go. We raised guidance on postpaid nets from 2. 4 to 3. 4 to 3. 5. We raised our nets, and we kept guidance on capital in line, and we kept our guidance, which is most important. We gave a threeyear cash flow tagger of 4548 growth, the biggest statement to make, and we held steady to that to customers. Amid shareholders, thats my message opinion. Well leave the interview there for now, but you guys continue the conversation, jim, thank you for joining, and john legere, thank you for joining as the results broke. That interview is on mad money tonight at 6 00 p. M. Eastern time. Stock is held, trades again in 14 minutes here at 4 30 eastern time. Another earnings alert now. This one on alcoa. We have the numbers. Shares trading higher in the after hours session after a nice move of about 5 today as well as on the numbersing and ill lum numb supplier, alcoa, reported First Quarter earnings of 63 cents, about a 10 cents beat in term the of expectations. The revenues were light. We came in at 2. 66, so you have cost cutting here thats getting you to the beat on the bottom line, by, stilling appears investors like the numbers. Cant compare them to last year because of the split of the company, but i it tell you the company is saying they are looking for a 4. 5 to 5 global aluminum demand growth for the year. Thats a positive sign. We look to alcoa because they are an aluminum supplier as an Economic Growth indicator, and thats what they are foe us kusing on here. Back over to you. Thank you. Mike on the earnings call, drama over klaus, who, of course, stepped down. Right. Probably will be a little bit on that, if theres anything to mop up. I do this is a kind of stock right now, if they come in with a decent ballet as they did, down 20 high to low between february and april and rebounded. Seems we get a move in cyclical, people believe in reacceleration of the economy, globely, this is the thing they will at least try for the upside. All right. We have to go at this pint, guys, slightly behind in our timing right now, but, danny from devine asset management, thank you as always, michael, good to see you as well. Thank you for joining us. Stocks in the u. S. Soar after the first round results of the french president ial election. When we return, discuss what happens next in france, and how that could affect the market and the future of the european un n union. Later, hear from a hollywood producer turned investment banker who says its time for the government to breakup those giant tech Companies Like alphabet the same way it did with at t in the early 80s. Well debate that. Watching cnbc first in Business Worldwide. I mean wish i had time to take care of my portfolio, but. Well, what are you doing tomorrow 10am . Staff meeting. Noon . Eating. 3 45 . Uh, compliance training. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Stocks pushing highs, due in part reaction to the results of the first round of the french president ial elections. Michelle carusocabrera is in paris with what is next for france. Good evening, michelle. Yeah. Well, across europe, bill, they see the french president ial election as a think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov a news alert on humana. Bertha . Raise iing tomorrow morning,e company now projects its going to be earning 275 a share for its First Quarter. That compares to an estimate of 249 a share, and its also boosting its revenue outlook to 313. 76 billion compared to 136. 4 billion. That exclude Health Insurance plans on a net basis, and the merger termination fee from the termination deal with aetna. Back to you. Thank you. Mike, strong. Looks like the stock has a chance at the alltime highs, just about a month ago, and so its one of those stocks thats holding on the postelection gapes, obviously, the Health Insuran insurance in a good spot, figuring it out with fewer restrictions. Its a positive story in a group thats been close focused. Mean while, whats tmobile doing . They had the stock held in the after hours while the Company Reported earnings that were up 46 , and we just talked to the Ceo John Legere, up three quarters a percent, offal high, at 66 point 43, but its a company doing well, and it was the sec best performer in the sector. It was. Essentially, you know, its a zerosum game, on the winning ends of it in terms of subs, and, you know, as mr. Legere reminds everyone, sprint, generally seen as more of a deal bait opposed to the real big market share gainers, so seems like people like the stock. Reviewing the core number, 1. 1 million, the valuable postpaid ads, almost 800,000, and a little light, but i think the postpaid might have been better than expected, but im not sure, but anyway, seems as if it was in the zone, and the fact they are continuing and consistently giving net ads is probably what exactly, especially after verizon. And john is on with mad money tonight. In the meantime, an update here with sue. Hi again, sue. Hi, sara. Hi, every. Great britain welcomings the United States move to impose sanctions on syria saying they are a clear signal that actions have consequences. The sanctions are geared forwards those linked to syrias link of chemical weapons. New orleans starting to remove the first of four confederate era mop knew inspects in the city. They are taking the down the Liberty Place overnight with police in Tactical Gear standing by for fear this could trigger violation. A poll shows three quarters of americans do not Want Congress to invest gait russias involvement in the 2016 president ial election. The nbc wall street journal poll finds theyd rather have an independent nonpartson Commission Look into allegations 6 tampering. A former no. 1 n florida pick announces retirement today. 31yearold jake long tore a tendon playing for the Minnesota Vikings last fall. He was drafted in 2008, paid about 104 nfl games, and he was selected to four probowls. Bill, back to you. Were getting old. Howie long songs retired. We all watched. Thank you. Thank you, sue. Up next, exclusive interview with express scripts, Ceo Tim Wentworth, talking about the companys latest earnings as well as the increasing pressure from washington over rising drug prices. And weve all heard about the exploding samsung phones, but fitbit has its own explosive battery issue. Uhoh, bill. Well look at the potential fallout for the struggling stock later on closing bell. Should i take this off . I dont know. Hey, the future, whats her problem . Apparently, i kept her up all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with artificial intelligence. And pretty soon ai is going to help executives like her see trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im sorry about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. You can stop tweeting, jake long is not howie longs song, chris long was. Never mind, its not that important. Finishing the day, dow up 216 points, 1 gains across the board for the major averages, nasdaq, and russell up, the best performer, all of this the result of the French Elections over the week. Pharmacy benefit manager just released First Quarter earnings. The stock currently halted. Still, yes, it will reopen in nine minutes at 4 45 eastern time, and right now, its at 67 poi 67. 25. Express scripts is not expect the to renew a contract with an them. This is a big deal. The ceo is with us, Tim Wentworth, along with our own meg kick it off. Thank you, and thank you jfo joining us. You said that, you know, it looks like anthem intends to move business at the end of the contract, 2019, 2. 2 billion, and about 31 of the business on the metric, by what happened here . What can you tell us about this . Well, today is a specific announcement, and i want to provide a bit of context for you. You know, first of all, we are servicing anthem and the members through 201 the 9, part of the revenues, important par of the business. I think, today, the real news when you dial through whats a very big release, you see that were finally calling out our core. You know, this is a question investors asked about for a while, and based on the recent conversations we had with anthem, it was time to break this out and show our investors the power in the core despite what they do no 2020. I talked with folks in the brief time with earnings, and now that youre here and people are just floored. Somebody compared this to what happened with united health, lugsing that business, and they were sold to you guys, does it make you vulnerable to potential consolidation. This shows the strength of the core model and value we got. You know, as we look forward well service, if anthem leaves as they seem to be having dec e decided, well serve over 65 million americans, a tremendous amount of scale in the supply chain, and as a stand alone focused working on behalf of the climates, theres a tremendous future. The data we broke out today begins to give our investors a real clear picture and value of the core. Now, of course, we have seen cvc, your competitor up in afterhours, people anticipating they get app thems business, how do you compete with them . Your stand aloin, something wells fargo last month, noteworthy, there was a risk this could happen with anthem, saying you guys need to diversify more, bulk up in order to provide Services Like united. How do you look at that. I look at that that our model allows us to create competition, not only amongst retailers and, you know, the supply chain and manufacturers, and all those things we have tremendous scale to do, and we dont need to be associated, necessarily with any, you know, particular part of the supply chain. I like the fact that were independent, drive down costs for plans and patients by create creating competition. We are big enough to do that. We dont need natural sort of next step relating to that to create tremendous value for the marketplace. Tim, griffeth here. This is not a Great Development of you guys. I get it. Youre a ceo, putting a positive spin on this. You sound like it was your idea. Why are they making this change . You know, you tell us. In your view, why anthem is doing this. You know, ill tell ya, perplexing to me and the team. We gave them terrific service. You have to look back to how this deal started. In 2009, it was a transformational deal for exselfincriminae exscripts, and we took it on, and anthems Management Team at the time wanted significant amount of up front money, 4. 7 billion is where it ended up. In exchange for the deal. So that deal trapsz formed the company. Ill tell you today, i woud love nothing more than find a way to keep anthem as a client. We offered billions of dollars of great relief for the next three years, price concessions, they are not contractually entitled to due to the unusual contract signed in 2009. We have come forward, offered an opportunity, and offered them the chance to not have to move the business or build inhouse, and with all the costs and risks associated with that, and the Management Team at anthem decided at least based on how they communicated to us at the time they are going to go another direction. Tim, as i understand it, its sara, they were upset and claimed you were overcharging them by 3 billion a a year, and im just wondering, if you expect more pressure from other clients as a result if they are going to look at their relationship with you as a result of anthem walking away . Well, ill tell ya, first of all, all 2900 clients look at the relationship with us on a regular basis and ensure on their own or through consultants, they have a competitive deal. The 98 retention rate,th 7. 5 last year, proves we deliver for the clients. Again, i remind you, anthem deal with the company is different than any other deal. 4. 7 billion dollars up front, which they used to buy their stock back by and large back in 2009, and we got them back in business in 2009 in the sanction cms business. We delivered cost savings out of the shoot. They came up short in the short run in terms of delivering claims to us. The deal did not look terrific in the early years, and now you see the result of the tenyear contract that Management Team signed in exchange for that 4. 7 billion, and that very different contract than 2 t900 of the oth clients have with us. Tim, we have to go, wish there was more time, thank you for joining us. Thank you very much. The stock opens, hear the markets response to this in two and a half minutes. It gets credit for coming on and talking to us about this. Absolutely. Overshadowed earnings. We were going to talk about that, but it was thrown to the wayside. 30 of the earnings. Big time. We reach the out to anthem and have not heard back. Thank you. News alert on wells fargo. Whats that about . Hi, bill. So you may remember what wells fargo submitted the living well plans to the fed in 2015, the plans were turned down as not satisfactory. Well, now, wells fargo has satisfied, according to the fed, living will provisions, that it was not previously satisfied with, so thats good. One check mark there, but wells fargo still has to submit new plans for living will and has to do so by july 1st so its checked off one box and now moves on to the next as far as living rules go to satisfy the regulations. Back to you. Courtney, thank you. Not an impact here in the afterours. Shares of fitbit, though, falling 67 over the past year. Wow. Over the past year. Year, yeah, okay, i got it. Users reporting her fitbit exploded and burned her. Hes all right. Is this safe . How the incident impacts the companys bottom line next. First, tech Companies Like alphabet, amazon, facebook, they now make up the top five Largest Companies in the world. Are they too big . Professor from usc joining us next with why he thinks they should be broken up. I cant wait to debate that coming up. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Tbut with lightning fast shifts instant. And dynamic tracktuned suspension, what the road demands, the gs delivers. Experience High Performance through high technology, in the lexus gs 350 and gs turbo. Experience amazing. Giant Oil Companies and big banks have been targets, but in the digital age, attention is turned on google and alphabet, seeing market capitalizations grow significantly. At risk . Loss of creativity and undo political influence. As least the thoughts of director of southern california, and innovation lab, in a piece he wrote for the sunday New York Times, much bussed about, and author of move fast and break things, and in an earlier life, he was tour manager for bob dylan and an investment banker. What . Renaissance man. Thank you for having me. You bet. Explain how google presents app antitrust problem, and why consumers get hurt by it . Well, the problem is that the rise of google, facebook, amazon meant the fall of the creative economy, so revenues that the mudsic business are down 70 , revenues in journalism at noo newspapers down 70 . Profits crushed. Now movie profits are getting crushed, so the problem is that these companies which are two of them, the largest Advertising Companies in the world, they took more than 85 of all new Digital Advertising last year between google and facebook, and they are just not sharing the revenue with the people that make the content that make all this possible. So my issue is that they need to be more generous with the Creative Community or there wont be a Creative Community. Yeah. You know, in your piece, you used at t as an example of prior, company with monopoly tendencies, but there was an example of a company that provided stability to an Important Service in our society at the time, television service. Not knowing i was going to talk to you today, i thought about microsoft as another example of that, bringing stability to the growth of the pc industry with a single operating system. But youre right. These companies, there is no main service that they provide that provides stability to society. I mean, what on what grounds, though, beyond just the fact that they have been so successful do you try to break them up . Well, look, you could argue that google is a natural monopoly, and its almost what we would call a utility. Certainly, in the Authors Guild case, it was the judge called it a utility. In the sense that google has 88 market share of all search, and so in that sense, it has become what economists call a natural monopoly, so then the question is, what do you do about that . Does youtube, for instance, share more of its revenues with the people whose content that is on youtube without their permission or do we figure out a remedy . In the near term i would like them to be more generous. If you had a million downloads on itunes you would make 900,000. If you have a million streams on youtube, youd make 900. You know, professor, whats interesting, too, though, yes, with the Digital Advertising, the cost of Digital Advertising has gone nothing but down forever. Its hard to see exactly how theyre exploiting, perhaps, this monopoly position. I also wonder what you would suggest in terms of a remedy, its not as if you could split the company up geographically, with things youtube inhouse with the search function . Well, what i suggest is the remedy that we had for at t in the 50s. So the government allowed at t to be a monopoly. But in return, it required bell labs to license all of its patents, to any American Company for free. So as you well know, bell labs had the patent for the transistor, laser, cellular system, satellite, basically all of the pieces of the digital economy. And out of that, those free licenses came, texas instruments, fairchild semiconductor, intel, motorola and hundreds of other companies that were created out of these free pat enter. But what every economist said, the big are getting bigger, and as the poor folks at snapchat are finding, these companies can crush even well capitalized Companies Like knocking off their features. We dont know thats happening. I would argue that this is a problem. Clearly. It was a great piece. We recommend it to everybody. It was in the New York Times yesterday. Jonathan, with your piece on monopolies and what to do about the technology world. Thanks for joining us. Thanks so much. Just a warning, sarah, im wearing the fitbit flex 2. Yes, i got one. My doctor recommended it. Wait, your other one came out of the drawer . No, its still in the drawer. Thats the original. But this is one user is claiming it exploded and burned. Im a little concerned. Just the latest concern for the wearable device maker which has already faced product delays due to production issues. What could this mean for fitbits bottom line, and my wrist . Coming up. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Express grips is now open down almost 11 here. Just reopening, and plunging following its better than expected earnings report. But the pharmacy benefit manager also said Health Insurer anthem does not plan to renew its contract that they first opened back in 2009. So the stock is down quite a bit. Customers representing 30 of earnings. Fitbit allegedly has a device that exploded and burned a customer. Cocacolas earnings tomorrow morning. And talking to the incoming ceo, james quincey, becoming ceo next week. Coming up tomorrow on squawk alley 11 00 a. M. Eastern time. Were on to you, diabetes. Times up, insufficient prenatal care. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Listen up, fellow fitbit users, a woman in wisconsin is claiming her x 2 exploded and left her with seconddegree burns. Im listening very carefully, di di. Glad to be on the other side of the country from you, bill. Dina mitchell said she suffered seconddegree burns after her fitbit exploded while it was on her wrist. Mitchell said her doctor had to remove melted pieces of plastic from her arm. A fitbit Company Spokeswoman said they are concerned about the report, adding that fitbit products undergo significant internal and external testing. The company will not confirm whether the incident is related to any battery issue. Ceo is alluding to manufacturing issues to the flex 2. He said the root cause, even though it looks like a fairly simple device, it is one of the more complex devices that weve designed and developed. Thats due to its incredibly tiny form factor. Aditi, thank you very much. The three of us are back again tomorrow. Hope you are, too. That does it for closing bell. Fast money begins right now. Fast money starts right now, live from the Nasdaq Market site, im melissa. Tonight on fast, markets surged today in a classic trump trade. Looks like its making a major comeback. How you can still get in on the rally. Plus, President Trump has ordered up a tax plan to slash corporate rates to 15 . He wants that plan on wednesday. But before you jump into the market on tax reform hopes, a top strategist says theres something you need to know. Hell be here to explain. Tmobile just repo