Welldeserved. Kids threw beach balls while i was talking. They didnt walk out. They did not. Accomplishment these days. Yes. Congratulations. From the whole family, from the whole crew. Thank you, thank you. A very big deal. Very, very humbled. Unusual for me. Anyway, lets move on. We got a great show for you today. Ford stock has fallen 35 under mark fields during his threeyear term, and now, of course, as you know by now, hes out of the c suite, but will the replacement turn things around . We have that satisfactory coming up here in a little bit. New problems for amgens experimental drug. We got details on that. Stocks down 2. 5 . More fallout from the biotech sector. Twitter holding a Shareholders Meeting this afternoon. That stock up in the last month. A good Old Fashioned bullbear debate whether the company is getting its mojo back and whether you should buy it now. Beginning, though, with President Trumps foreign trip in israel today after spending time in saudi arabia over the weekend, and where a number of deals were announced. Eamon has the latest developments now. Yeah, bill, thats right. The president who wrote the art of the deal, and hes very much taking that deal making approach on the road as he travels in the middle east and in israel. Hes talking about cutting deals and talking about middle east peace as a deal making process. This is what the president said today. I thank the Prime Minister for his commitment to pursuing the peace process, working very hard at it. Its not easy. Ive heard its one of the toughest deals of all, but i have a feeling that were going to get there eventually. I hope. So a very optimistic and respectful donald trump in israel today saying he hopes they can get a deal on middle east peace. With that, the process thats bedevilled many previous american president s, this one, though, optimistic there might be a solution here, and while in saudi arabia, look at these numbers. The president announced a bunch of developments. Of course, using this platform to announce a series of deals like 110 billion in defense immediately and 350 billion over temperature years for the saudis. U. S. Saudi investments announced during the course of the trip, 15 billion in Industrial Development for ge, dow chemical, 100 Million Manufacturing plant, and lockheed said the saudis intend to procure 28 billion over time in defense technology. A lot of signatures put to the bottom of a lot of pages in the course of the trip, and thats typically what the president ial journeys are about, bringing together a lot of the deals that have been put together over a period of time months, and announcing at once, using momentum to shift relations in the way the Trump Administration hopes they go, bill. I wonder, now that hes leaving saudi arabia, israel, headed to italy and europe, does that mean, seeing stocks and big movers on the deals today, are those announcements effectively behind us . The rest seems to be more about the relationship with europe and things like that. Right. Hes going to have a nato meeting, a g7 meeting, and hes going to talk about christianity in italy, so theres another big religious component to this as well. Hes visiting the headquarters of three major faiths there in the course of the trip, so you would expect that a lot of big, you know, unveilings of corporate deals to be over, but you never know, as we said, this is a deal making president , and he loves to announce things. Thats for sure. Thank you very much. You bet. Blackstone shares higher, its not just lockheed. They are up by 7. Pennsylvan5 , move, but the announcement of plans, and leslie picker has more. One of the biggest infrastructure funds seen, leslie. Absolutely, kelly, and at 40 billion, this new fund increases this to more than 400 billion. Thats real money, guys. Analysts i spoke with estimate that as a few dollars in value per share, which is why theres a jump in todays trading. Now, Public Investment fund of saudi arabia is putting half of the capital and blackstone is seeking outside investors for the rest, including financing, could invest more than 100 billion in projects like replacing tunnels and repairing bridges. There is a common denominator in this, though. Donald trump, announced in the trip to saudi arabia over the weekend, and blackstones chairman and ceo is in charge of the president s Economic Advisory counsel. Trump has, of course, made infrastructure a key priority of his administration. Its worth noting, though, that blackstone and the saudis are discussing trump, and the saudis will not have a say in daytoday management of the fund or investment. The structure is different than a traditional equity fund. Infrastructure funds have lower, but more lockups, but this fund is permanent capital, guys. I can see why thats good news. Any what the funds will be used for, though . Is there a u. S. Infrastructure, you know, what washington would like to see funds use for type thing or anything . Anything. I spoke with many over the weekend saying it could be things like bridge repair, tunnel repairs. Roads, imports, anything. You have a 2 trillion need for repairing infrastructure in this country right now, and so this is a hundred billion dollars worth of it in the structure of a publicprivate partnership, so it will be interesting to see exactly what they tackle and what the priorities are. All of the details are still being figured out among the funds advisers, but well definitely stay on top of it and let you all know. Lets talk more about the impact of this trip. We have market analysts with us and Rick Santelli from the cme in chicago. Steve, oil stocks are higher. Oils up again, but how much do you think the market bounced as a result of the deals that the president and his administration has made over the weekend . Well, i think the look at lockheed, boeing, general dynamics, all of them are up based on those deals, could have bought them friday, and in the news, bill, which is uncharacteristic of this market. It was thought to have. Priced in already, based on the speeches. We all knew what was going to happen, and we all knew about the deals, contracts, proposed contracts supposed to break over the weekend. When you look at oil, flip it over here, opec did as much bullishness as they can for the spot price, yet the xle is down, and although its small today, its definitely come conflicting viewpoints. For me, i think that if you look out on the time horizon, saudi is the most biggest, bullish thing for oil. Theres analysts that are bullish on oil for a piece of the 5 ipo. Not the only reason, of course, but, still, theres plenty of things lining up bullish for oil, and they cant breakthrough the 55 mark let alone stay above 50 for long. Thats bearish overall. Bullish for the markets that the trip startsed out with a Good Relationship between our president and the saudis and deals announced . They made the point in a comment over the weekend. Is that helping the fact the dow is up 87 points, coming off the tone set over the weekend . I think so. I think it has something to do with it. I dont know that its the driver of it. Things are getting better. Earnings expectations going up, and thats probably, trump arrived at the same time better earnings did, so im not sure hes to be credited for that, but its always good to see business being done, more business than was there before. Whenever President Trump says something and comes across as being probusiness, that cant hurt. What do you think, are you seeing a reaction in markets followed as well at this point . You know, bill, i think when it comes specifically to the trip, the president in the markets, obviously; certain stocks have that reaction that steve grasso pointed out, but i think its more that the president is trying to be probusiness, and probusiness is how much success he has is just the added bonus. I really think the bigger dynamic is the weak dollar and strong euro. I think this is really getting to be a trade that we need to really think about. I urge viewers to look at odd things going on, for example, look at the hyg chart over two, three years, and, by the way, making highs for the year today, and overlay that on the price of crude oil for two, three years. These charts sync up for a variety of reasons, but not the least of which europes currency has training wheels on it. Draghis pedal to the metal, Balance Sheet of the ecb rivals the sides of the u. S. Federal reserve Balance Sheet, and i know theres talk about a taper, but i dont know that they can really do it. I think, you know, with you have the fast, its easy, but the baggage starts to add all the weight into the trump. They cant keep doing this, and i dont know where it will stop, but i do this as long as euro goes up, you see the price of treasuries firm, price of dollar commodity firms, but when it comes to the equity markets, specifically, i just think more of the same. Less volatility, wednesdays a distant memory, back to the 2900 level before the nervous session midweek last week. John, do you like the weaker dollar here . Almost breaking 97 to the downside from a high of about 103, so 6 drop in a span of a couple months. Feeding through into better corporate earnings for you . It should. I dont know how much people pay for corporate earnings to go up or down because of currency fluctuations these days, but i think its a positive than not. Its a sign i think its a sign that europe may be getting better, and i think if that happens, that cant be a bad thing if the u. S. Is getting better, europes better, and the worlds dmis better. A lot of the awful things we went through are very much in the Rearview Mirror right now, and they dont count in the Rearview Mirror. Thats important to remember. Things are getting better, in my opinion at least, and thats a pulse Going Forward for a lot of markets. Steve, talking about the lack of volatility in the market, but theres a statistic to validate that today. Tell us how little volatility weve seen here lately. Research team sent out this awhile ago to this point this year, there have been only four days that the s p moved 1 up or down. Last year at this time, 31 days with a 1 move. Wow. That is speaking volumes right there, dont you think . Its tremendous. You know, the passive versus active management is worthy of extended dialogue, but when you have more etfs than you have single stocks, it really stands to reason that you get multiple buying in any one given name. Apple in multiple etfs, appea appears must be bought multiple times throughout the course of the day, and when you see that, theres a bid in the market. If you have guys shorting it, overall market, i mean, and then you have pass through investors dumping money into etfs, its an offsetting activity, but last week as rick said, there was volatility spikes, and i suggest maybe you see when President Trump comes back on u. S. Soil, you start to see impeachment, comey headlines again, and maybe theres a test of the volatility one more time around. Well see. Gentlemen, thank you. Good so see you all. Appreciate the thoughts on the market action, such as it is. Thats true. 45 minutes to go, a nice rally, the dow up 90 points, up less than half a percent, a laggard here. S p up half a percent, 12 points, fighting back to the 2400 levels. Nasdaq up. 75 , leading the way as it has been. Russell up half a percent. The ceo of aspen constitute talks on Management Issues leading to fields, and what challenges lie ahead for the replacement coming up here. Ahead, discussing what lies ahead for netflix as the media giant celebrates 15 years since pricing its initial public offerings. Youre watching cnbc, first in business worldwide. 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. Hot day for the stock market, not all dows components are positive though, ciscos leading upside, but we have pfizer and nike and chevron, so a Cross Section of companies dot downside today, but right now, the dow is up 90 points. Was up more than 100 points awhile ago. Shares of ford higher after the giant replaced its ceo, mark fields, this morning. Phil lebeau has more. Lets talk about the new ceo at ford, and a lot of people say, who is jim hackett . He was a ford director from 201315 and took over the companys mobility business out in the silicon valley. Whats the outlook for him . What challenges does he face in keep in mine, fortd ld lowered outlook, but could be the most profitable year for the auto maker, but the focus is on improving value and creating value in divisions where its created. If he cant find it, get rid of the divisions or minimize them as much as possible. Beyond all else, the chairman says the Company Needs to move faster. We need to be quicker in our decision making. We need to have clarity in the messages and communications, and thats something and we also need a leader who has transformed a company before. He believes that jim is the person to do that. Remember, for a number of years, he ran steelcase and is credited with taking a company in a tough industry and being a real operational whiz there. Look at this, the auto stocks of the large legacy auto makers over the last yearment only ford, ford along is the only one negative over the last year, down 16 . Against that backdrop, bill ford and board of directors hope jim brings in a new philosophy and inject change into the company because, guys, youre looking at a company thats very few people are optimistic about over the next couple years. All right, stay right there, phil. Bringing in Walter Issacson, ceo of the aspen institute. Walter, listen, its a tough place to be, industrys undergoing change. What would you look to happen at Management Level in order to steer the company through that . Yeah. I was at the Detroit Auto Show this past couple months ago doing an event with some of the ford people, and they are foc focused on Smart Mobility. You know, what is happening now 12 a tsunami of effects hitting the Auto Industry. Whether its selfdriving car, electric cars, ford, Smart Mobility unit, but down here in new orleans, we work on the question of replacing Public Transit with autonomous vans that are on demand. Youre going to see a technological change that affects the use of the personal car how it is shared, used, driven, and ford needs to be ahead of the curve. Good thing is bill ford has always been focused on that, and hes a handson, smart, sensible chairman. Steve, what you said there, a freudian slip freudian slip, but hes been the ceo before. I know that, but did he actually leave the Corner Office there . Does any ceo at ford not name ford starting at a disadvantage because you still have the family looking over your shoulder. They still have 40 of the Voting Rights at the company, although holdings are less than that percentagewise. You still have to impress the ford family as much as anything here, dont you . Absolutely. Thats either an advantage or disadvantage, and my mind, advantage right now. You look at bill ford, very forward looking, understands the age of Autonomous Vehicles. I think thats why he supported in change. He wanted somebody to move faster, and articulate a vision for the future faster. Seemed to me when i talk in the Detroit Auto Show, he was pretty impressed with jim hackett. Theyll make a good team. What do you add to that, comparing ford, navigatining through the period to gm . They are not alone in this, but they have replaced the ceo as a result of their displeasure. Well, jim hackett was in charge sorry, walter, one point. He was in charge of the Smart Mobility division and yet one of the criticisms of mark fields was, were not clearly articulating our vision and wall street is not behind us. Who was in charge of the Smart Mobility division . Jim hackett, how he has to articulate more. While ford made Big Investments out in the silicon valley, when you talk with people out there, and when you talk with analysts, you talk with people in the Auto Industry, ford is generally considered to be a laggard relative to others when it comes to developing systems. Doesnt mean its not turning around, doesnt mean jim hackett cant catapult into a leadership position, but the clarity has to be this is where they are starting right now, from a position of trailing, not leading in the area. Can they do that, walter . Make acquisitions to get to bring the innovation in the house here . What do you think . Well, that was the question i was about to ask. I really do think they need acquisitions. You saw that in the other Auto Companies making partnerships and deals, whether its lyft or whether its Autonomous Vehicle technology. I think ford, good thing is, so sort of secure, very straightforward, kind of easy, and i think they need somebody who is comfortable in silicon valley. Hes going to make some transforming relationships, partnerships, or deals. Especially when it comes to the question, not only of Autonomous Vehicles, but ride sharing combined with Autonomous Vehicles. You saw uber, by the way, left out of big deals recently, and so there are people in both Industries Ready to make deals. Very good. Thank you, both. Phil lebeau and Walter Issacson joining us on a turnover day for ford. Heading into the close with 37 minutes left in the trading session. Gains across the board for the major averages, dow up 88 points right now. Zblnkts up next, remember when they were a dvd distributed . I do. I remember the dvss in the mail. Talking about the future of netfl netflix, marking the 15th anniversary since pricing its ipo. Also ahead, a tech stock losing ground after a disappointing trial for a drug. That when kelly and i come back. 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. 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. Welcome back. Heres a look across the markets, dows 86 points, still below 208900, and the nasdaq up 45, russells up 7. Qualcomm higher after being upgraded overweight from neutral. Look over the legal fight with apple making the case of the acquisition in semiconductors a good reason to be optimistic on the stock. Shares. 5 on that report. Okay. A history lesson, kids, 15 years ago today that netflix placed ipo at 15 a share. How much is it up since then . What about 12,000 . Right . Wow. 156 dollars and change. Going from a dvd rental service by mail charging 19. 99 a month to, send back whenever you wanted to, right . 600,000 subs at the time, and now they are a streaming Service OfferingAward Winning original content for 9. 99, and they have more than 100 million subscribers today. Just for fun, heres a look back at the top content, the top rentals, most represented dvds in 2002. They were training day with denzel washington. Stop looking at the picture there. Tried to cheat. A. I. , 13 ghosts a remake of the classic in 1960. I didnt even see the remac. People were excited about netflix shows. Now, today, youve got the original content, orange is the new black, the top rentals right now, season four, and you got stranger things, heard great things as well, have not seen. And fuller house number three, that has done so well. Wow. But you want to see the crown, which i highly recommend first, i have to get netflix. Well, theres that too. I would also recommend bloodline, a fabulous series, season one, especially terrific. Whenfuls the last time you watched a movie on netflix . Awhile. Exactly. Awhile. It was fun with the rental. The original content i watch. Exactly. They have completely think what they have done with the business model, movies by mail to shows online. They had a share of volatility, but incredible performance. E evolving with the customers. Absolutely. Thats what thats about. Congratulations. Time for the news update with sue. Thank you, kelly. Thank you, bill. Former National Security adviser flynn invoking his 5th amendment right in a letter to the Senate Intelligence committee citing the, quote, escalating public frenzy and refusing to turn over records in the russia probe. Legal experts say flynn is looking for immunity. Supreme court struck down two North Carolina congressional districts ruling that republicans who controlled the state legislature and the Governors Office back in 2011 placed too many africanamericans in those districts. The decision upheld the Lower Court Ruling in both cases citing weakening impact of the africanamerican vote. First lady visiting a hospital in jerusalem with the wife of the israeli Prime Minister. The two met a number of Staff Members before talking with children who were patients playing outside of the facility. At a cafe in melbourne, australia serves up, you got it, an avocado latte. It is served, as you can see there, in hallowed out avocado skins, complete with designs in the foam, and it is called the avolatte. I dont know how it tastes, but i dont know how ittists. There you go. Thats the news update this hour. Bill, see you tonight. Yes. Ill be with you on nightly Business Report on pbs. Looking forward to it. Me too. Here all week, folks, as they say. Excellent. Avolatte got your attention. It did. Im with sue. I dont want to taste it. Something to go with kellys avocado toast. Anyway, so, okay, a bounceback from last week right back where we were. All that Political Drama caused attention for one day, and then what it tells ewe the Political Drama is not the drk the market does not price itself on Clinical Trials in the long term, but focused on earnings and data and european data, and all the other stuff thats more important. When you have a market, pointing this out earlier, when you have a market where we only had four 1 moves in the s p so far this year right. This constitutes volatility. It does. Take evening of it . It does, but feels like, again, were up just in the highs again, and feels tired. Theres not a lot of volume today, back at 2400, and feels like its felt the last seven, eight times, that its just not having moe ten tum to go through, and the market is going to test lower, not necessarily crash, but turn lower. For you, its a showme market . Yes. Id be up here more of a seller than a buyer. All right. Very good. Thank you, kenny. Kelly . I would have that latte, by the way. Not surprised. You enjoy that. Just saying. If i still drank coffee. 30 minutes to go, dows up, and transports up, and dollar is weak. I mean, its looking like a dollar index breaking below 97. Crude up, russ the up 7, and attention, bargain hunters, j jcpenney hay have a sale that will not last long and the store may not either. What nay are up to next. Twitter shareholders meet today, and debating whether now is a good time to buy the social Media Company stock. Thing tradil about my Small Business so when it comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. Welcome back, beginning of the end for more than 100 Jcpenney Stores, and we have one of the stores in west new york. Theres going to be deals, court. Reporter hi, there, kelly. Yes, so behind me is one of the 138 Jcpenney Stores the retailer identified as closing on july 31st. Today is the first day of the Liquidation Sale. We looked around, and the average discount right now is about 40 . This is only day one. Expect discounts get deeper as time goes on, and everything is for sale. That includes all the fixtures, meaning the racks and the shelving. There are signs by the cashiers showing where the next store is, and directions to the website because retaining customers is going to be key in this situation where youre closing just some of the stores. They are working with experts in order to conduct these closing sales. They look at data from every individual store, and they consider timelines and inventory levels in order to determine exactly how long it will take and at what price is takes to sell everything in the store. They are also working with targeting the local market for advertising so shoppers know the Liquidation Sale is going on in the store, hiring extra Seasonal Workers as well because traffic is holiday levels with sales like this, and in often cases youll see the higher priced items taken out of stores before the Liquidation Sales, but in this case, the appliances were still in there marked 40 off for things like washing machines, refrigerators, airconditioning, some of the bigger items, but its not uncommon to see the discounts get up to 85 or 90 right towards the end like the last week or the last day because the goal is to sell everything, and education perts say prices like that will get the job done. Kelly . All right, thats what im thinking. Now, as kelly knows, court y courtney, i use i shopped at that mall. Thats my mall there, or was my mall for many, many years. Theres another one down the road that opened in the last couple years that everyone goes to now. This is a big blow to this mall because jcpenney has been an anchor store for a number of years. Who gets that space now . What happens to the mall . Thats happening in 130 other places around the country. Reporter exactly. This Jcpenney Store is three levels, taking up a decent amount of Square Footage and real estate. Speaking to folks, its funny, when the sales go on, the experts tell you that the other stores actually suffer more because shoppers are going into jcpenney and buying because the prices are so good, and then later on, then they lose sort of the residual effects from the shoppers because it is an anchor store. It is a problem, and some of the retailers do have special things in the leases so that if you lose an anchor store, they also have the ability to cut short or just work on concessions because they lose traffic. Theres certainly a domino effect felt initially in the sale and afterwards. And real quickly, courtney, is there a weaker quarter, possible that all the liquid sales are taking a toll on some of the bargains offered elsewhere . Reporter that very much could be the case. But, again, you have to remember its going to be regional and geography specific, so this is one store thats closing, but there are a number of other Jcpenney Stores in the area, so it kind of depends on your own personal shopping patterns, and if that pulls you away or towards a t. J. Maxx but think about the inventory left, when i spoke to the experts, i said, what happens to everything thats left when its time to close the doors on july 31st, and they said, theres nothing left by then. The alkg rigorithm is so figure that they have everything figured out, 85 is enough to sell everything. The shelving and everything. Goes great in an apartment. Where did you get that wire rack . Metal rack. Jcpenney clearance. Hide in the coat rack like as a kid. Who told . Maybe not. 20 minutes left in the trading session here, dow holding on gains. Up 994 . Everybodys doing well. When was the last time you were there. A few years. Would have gone in the past. Would have. Outdoor mall now, cool stores. Oh. Need i say more. Thats where i go. Offering cooking classes. They do. Hope for amgen could be derailed, but the setbacks they are facing is boosting a rival stock. We have that story coming up. And still ahead, obamacare is in the cross hairs of the republican congress. But unless the white house makes a dramatic move today, Obamacare Exchanges could collapse. Well explain when we come back. This is where i trade and manage my portfolio. 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Welcome back, the drug maker radius popping 8 after amgen faced a testing setback. Shares down 2 . Meg . Thats right. A this is a story about ost owe pro sis, affecting people in the United States right know, possibly 2 million bone breaks every year in the United States. This, of course, is a big market, and theres still a need for more treatments here. If you look at the market breakdown right now, amgen owns most of it, according to research in 2016. A market of 6 billion, amgen owns about half. By 2021, estimates markets up 7. 7 billion, and amgen, back in march, would take a little bit more of that market followed by lily, pfizer, and radius as well. This is a market wfith a lot of drugs on it already, a lot generic. In a trial coming out from amgen, it looked good, but, however, the problem is here now a new safety issue emerged, cardiovascular risk, and in an indication this big, indication of heart attack or whatever the events are, this could derail the drug. People are saying, amgen was expecting fda approval or decision by july on the drug, but now the fda is taking this into account and makes a decision on the drug. This is one drug, and they have half the market. How, you know, how does this sort of affect their whole portfol portfolio . Yes. Just one drug. Analysts saying, you know, it was not a huge part of the story, and thats why they are only down 2. 3 there, although, multiple analysts have taken it out of the model. Radius is up on this is they have a drug for osteoperosis drug cleared in april. A stumble for a large established company like amgen. You expect it from the small startups, but a company like that . This is drug development. You think about late stage studies, it speaks everybody. Shows how unpredictable these things can be. All right. Doctor, thank you very much. Thank you dr. Bill. And you will see each other later. Yes, we will. 15 minutes into the close, dow hanging on to a gain of 88 points, s p 12, russell up 9. Twitter stock up 25 in the last month. The ceo fielding questions at the companys Shareholder Meeting today. A bullbear debate on whether the stock has upside coming up. Say carl, we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Themes are the focus for the ceo of twitter and chief operating officer, end they acknowledged talks of Subscription Service to twitter, but nothing confirmed at this point. Shares of social media platform surged 26 , and joining us to debate whether the run continues is rob from gerber and 95 institutional. Welcome, guys. Ross, asking this question 26 ago, but, you know, how much more do you think twitter shares run here . Well, you know, truth of the matter is twitter made smart moves here, especially with management, and twitter could double if the company was run correctly, so, you know, as you know, the upside to twitter is, you know, really valuation in an unmonetized, you know, very valuable platform. Theres upsides, and only Thing Holding it back is management. Speaking of which, max, you want to see some new blood there as well. A lot of people do, but i got two words for you, biz stone. He came back, the cofounder of the company, and, you know, the buzz is that maybe he takes over for dorsey at some point. That change your mind about the company . Look, its a Great Company in the public utility sense, but the company is bad at making money. Talking about the upside, i mean, it needs to get back to the first day of trading, talking about 2. 5 from where they are now. Like the company, what theyre doing, and provide a valuable service. I said it many times, twitter is the first draft of history. What they have not spent time on is being user friendly, a good on boarding strategy, or making money for the investors, and when you have an investors meeting, things bubble up and they bubble up less than gleefulness and sharp edges and sharp elbows. Max, bringing biz stone back, and, perhaps, that makes people who remember how high they traded pleased, but was that a good move for the company . Look, hes an impressive guy. What he did make enterprise value over there, bringing in shareholders, and those who built the company with him, and i think, look, this is a company that keeps bringing back the guys who figured out how to build something powerful that doesnt make money, and they are shocked when they build something powerful that doesnt make money. Even if hes the right guy for the job, and honestly, i dont know, they need new blood just to show they can look outside of what has not kept investors as happy as users over the last three years. Hey, ross, rather than talking about new blood, what about just a new owner . I mean, its distinctly possible a Bigger Company just buys them. Would that would that solve the issues youre talking about . Well, theres a reason thats not happened, the board wont let that happen. That opportunity could have happened a year ago, but the board is so selfish and so selfviewing, dulling out options by the hundreds of millions to themselves, they they dont get that this is its really negligent, the board is negligent. Bottom line, there needs a money guy like me running the company. They made the product fine. I certainly know exactly what twitter needs to do with the platforms to make money, but go to bloomberg. Bloomburg should be buying the company of the its a new source. They come out, and they pitch my 20,000 bloomberg terminals saying everything on twitter is faster and better, and im getting more better information from twitter than any other source, as an investor, so ross to me is your point youre saying that the company is too focused on the product and not focused enough on financials . Absolutely. Absolutely. People use twitter. They want entertainment. They want all the fun things. Its a news platform, and its not an entertainment platform. They dont understand it. So the the bottom line is a News Organization should be controlling it, and i think its perfect for bloomberg. What do you think about that, max . Especially when you consider the deals theyve been cutting lately to live stream sporting events, for example. Is that an appropriate app applicati application, do you think . Yeah, look, live streaming, events are where its at for them. I like the idea. The question e is, just news has lower margins and multiples. The issue in no small part is wall street has been pissed off twitter did not become facebook, that they love, and twitter is proud to be an engineering platform, first draft of history that does not look like facebook, so we have a huge disconnect here. I think the product has not been as successful as wed like to see it, and proof in the pudding is the numbers. They are good lately, but monthly and daily users, it is a niche market tool. They are bringing them into a business line where multiples are lower, and thats that begs a series of question about valuation, which could depressure where where it is now. All right. Very good. Good stuff as always, guy, thank you. Always good to see you. Ross, the future ceo or cfo or something. Apparently looking for a position at the company. When we come back, closing countdown with the dow up even 100 points. Look at that. After the bell, federal Aviation Administration recreational owners have been ruled unlawful. Is it a banner day for citizens rights, or a looming Security Threat . Asking the lawsuits plaintiffs, joining us next hour right here on closing bell. 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 less than three minutes, two and a half minutes left in the trading session, dow up 96, 105, low was up 55. From the getgo this morning, positive. We come back from the lows of last week. Let me point this out again on the standard and poors 500 index that our Research Team put together. This year, theres only been four days where the s p moved 1 , either up or down this year so far. Last year at this time, they were 31 days where we were a 1 move. Thats a lack of volatility. Thats a oneyear thats supposed to be a year to instigate chart is what i was after for the s p. Just so we can see that smooth nature that dom will want to talk about. Wti crude is higher, below 51 a barrel, but getting close to that. They are talking about extendsing production cuts, and whats going lower, the dollar, at 96 and change, and taking us down to some multiperiod lows here. Thats a big divergence. You mentioned oil prices, right . They are up today, 38 cents, like you said, 51. 05, and if you put up the energy chart, the sector spider, its actually negative on the day. Theres Oil Continues to hover and make some strides higher, yet we still see Energy Stocks lagging. Happened again today, and this is just a reenforcement of thatdown trend seen in Energy Stocks since middecember at this point. The energy laggards is one to Pay Attention to, and, of course, the other one here, you mentioned the market, the sense here is you are entering this seasonally weaker period, right . They talk about fall and may, go away, but now we said it, but it seems like thats not happening. Right. No matter what geopolitical risks are out there, the market largely shakes them up. Talking about exercising the idea that the vix is coming down, we have tenyear note yields at 2. 25 , there could be this idea that maybe things do stay calm. A lot of traders hope theres at least some volatilitvolatility. Just not today. Just not today. A good rally for the major averages. Thank you, dom. You got it. See you later. With the rally, s p and nasdaq are now positive for the month of may. Stay tuned now for the second hour of closing bell with kelly evans and company, ill see you tomorrow and tonight on nightly Business Report on pbs. Hope to see you then. See you tomorrow, kelly. Thank you, bill. Welcome to the closing bell, everybody, im kelly evans. Dow briefly higher by 100 points, closing up 90, less than half a percent gain, and same gain saw in the s p 500, closing at 2393, and after a 12point rally. The nasdaq leading the way, and as it has been so much of this year. 6133 the closing level there. The russell doing all right for their part, up about. 75 , 1377. Dow transports higher. Dollar index moving the other way pushing oil and other things up. We have to talk later about bitcoin, another story, and gold moved higher, and its the rise of machines. More than a quarter of u. S. Stock trades made by funds last year. What this takeover means for your money. Talking more about that coming up. Joining me on todays panel is Senior Market commentator, and ian from web bush securities, director of equity trading, and david cass, chief investment strategist. Michael, a quiet rally, but a decently sized one. It is quiet. Obviously, markets got its feet back under it after last wednesdays selloff, and it is in the absence of anything new of something to knock it back off course. Back to the high liquidity, buy growth stocks, get us back into the range where we were before, and it really just undid the stock to the downside, and it got us a lot of evidence to take off above the top end of the range. The volume in the s p 500 half of normal today, so, yes, it was a gent of lift. You have something to say. What are you seeing on the desk today in terms of the markets . Well, the same thing for a long time now, which is just a noticeable lack of supply. Money comets to flee in index funds and efts, and as long as that continues, youre not seeing a lot of active management, so volumes lower, and on single stock stories that should be getting killed dont get hit as hard as possible because the index guys are not selling. Realm, i mean, thats crazy if you think about it, right . I mean, maybe its its so, like, five, ten years ago, a stock that dropped 8 , might only drop 2 today . Thats correct. If you look at the holdings, the holders of all the stocks now, the stop slots were active managers, and now they are all passive managers, so, to me, feels like theres a big bubble brewing here where everybodys playing the same game, and the thing is, on the downside, it accelerates just as quickly as it has on the upside. Kelly, can i latch on to that a second . David, please, go ahead. I think whats happening here, you are definitely seeing that in the nasdaq 100 and the biggest stocks, but a fairly significant correction in a lot of sectors and a lot of individual waiting for a pullba its happening in a lot of the market, but not in the megacap stocks and growth stories of the day. From investors perspective, best thing is not to chase whats very hot, and nasdaqs up 15 this year. Thats not going to be the place to make the next 15 , but rather, look at things that have already had the correction. But, david, your picks here include cisco, exxon, jpmorgan, some of the biggest cap names swept up in the whole index, though, right . Youd like to think so, but they have not been. They have had corrections. Energy down sharply, saw the chart before we came on, showing although Energy Prices were up, the stocks are down 1012 . Exxon is a classic example of that, down 810 this year. Its selling at a significant premium in terms of yield to the s p, and every time its dope that over the last two decades, its done very well over the next year, year and a half, but nobody cares about that right now. This is the same thing, had aed modestly disappointing a good quarter, but a modestly disappointing revenue outlook in line earnings, stocks sold up 7 . Youre getting opportunities, but need longer time frame on them. You know, mike, backing out about why we see the dynamic, you know, making the point himself, that, you know, telling climates to stay long, longer it takes Central Banks to tighten, the greater risk there is of a speculative mania. Kpexactly. You want to position, if youre a professional investor, the idea that high liquidity stays in place for a long time. Back in the slow growth, no extra stimulus, Central Banks are slower to take it away, thats the direction of least resistance. Hes said that for a while. Its not a new stance. I think, actually, its in tune with the way a lot of investors approach the market which is, look, i see where theres momentum and why we grind higher from here, but its not feeling like theres space in a muppet year process of Economic Growth in terms of delivering great return. Ian, going back to the point you made, yeah, i mean, so anything to think through where are pargts of opportunity in the market then . Suggest its definitely outside the s p 500 . Is it outside the russell 2,000 . I mean, theres, you know, so many different types of vehicles for passive invest egg that seem to blanket so many of the stocks out there, right . Yeah. I mean, i think, you e know, theres certain areas like retail, for instance, where you got to a point where, i think, theres opportunities on the long side, and names that are a little bit more amazon proof. In general, if you look at the sentiment out there, its bullish. I mean, you got guys now like, you know, Jeremy Seagal saying its bullish now if trump gets impeached. Now it feels like everybodys playing the same game. Same five names taking on a beggar percentage of the market every single day, and im nervous that you start getting those comey headlines, you get a fear around global growth, and this momentum could reverse course real quickly, and you could see a nice dip in the s p. Meaning if its overdone, you know, could be a chance for people to get in, you know, the whole thing, individual names, coming back in a sec. President trump med with israels Prime Minister continuing the visit in the middle east. Eamon is at the white house with the highlights. Reporter on capitol hill today, one of theer wanted to look forward to on this trip is changing the headlines from the tough coverage he got in the russian matter with the apointment of a special counsel as you talked about briefly, they were looking forward to seeing president on the world stage talking about International Issues and world peace and that sort of thing, but it was the president , himself, in an unusual moment alongside Benjamin Netanyahu today who brought up the russia investigation. This was a moment where they were doing a photo opportunity with a handshake, press in the room tonight, and the president brought them back in to make a point he wanted to make about what he told the russians in the Oval Office Meeting that was controversial. Heres the meeting from earlier today. I never mentioned the word or name israel, never mentioned it in during that conversation. Theyre all saying i did. Theres another story wrong. Never mentioned the word israel. The president criticizing the media getting it wrong, but in actuality, the Media Coverage never suggested the president used the word israel in the conversations with the russians in the oval office. The allegation was that the president had tapped over a classified information that had come ultimately from israel in order to pass that information along to the russians. The allegation was never that he used that particular word in the conversation or that he ever told the russians where the information originated. Still, theres a lot of opportunities here for the kind of headline that the white house me wants in 24 hours. Look at the president s schedule. Tomorrow, its more of the Standard International trip including a meeting with dbbas, palestinian leader, delivering remarks at the israel museum, and in the afternoon, flying from telaviv to rome with more opportunities for the International Coverage that the white house has been looking for, kelly. All right, thank you. Much more to come. David, you know, some of the defense were alltime highs, lockheed and more, is this a sector to chase now, or differently, are the defense names a place where you see value . Defense names are selling at regional prices, they would do well over 1218 months, but theyve moved. There are better places to make money, but if you have them, hang on to them for a little bit. Ian, what about you with the big cap defrs . You know, alltime highs, they long been listed as one of the biggest beneficiaries from the Trump Administration. Do you expect them to keep climbing here . I do expect them to keep climbing. I mean, on balance, i think were probably more in danger of the military Industrial Complex than ever, and although a third of the people in the country can put north korea on a map, you know, ultimately, i think were going to be doing a lot more on that front, so, yes, if there were a group that i would want to be long and stay long, its this group. All right. Thank you, guys, for joining us. Ian and david. Thanks a lot talking about the markets. Meantime, ford shooking up the csuite today, mark fields out amid increasing pressure over the falling stock price and silicons valley push into cars. Up next, whether the oust is a red flag for turmoil across the rest of the Auto Industry. Later, hear from somebody who says traditional trading strategies are now history since data driven traders have taken over wall street. Youre watching cnbc, first in business worldwide. Totaled your. Nobodys hurt, but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do . Drive threequarters of a car . Now if you had Liberty Mutual new car replacement™, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. With Liberty Mutual new car replacement™, well replace the full value of your car. Liberty stands with you™. Liberty mutual insurance. Zblmp welcome back, ford shares higher after the ceo shakeup because of increasing pressure on the period of time, a 2 rally. Phil lebeau joins us now with whats hurting ford and the rest of the Auto Industry. Kelly, what we are talking about are pressure points that are perceived by investors. I got e emails today from people saying, well, wait a second, thats not going on at ford. Were talking about perceptions holding the stock price down, three stand out. Starting with the perception that ford, while investing heavily in autonomous drive technology, is not a leader in that category. I know we earlier today heard from bill ford who said, look, weve been cited as a leader in that area by those who have done research on this, and we believe that we are a leader, and, yet, when you look at video from the vehicle and google, theres the perception that perhaps ford is no nowhere close to being on the cutting edge when it comes to selfdriving auto technology. One reason why investors are skeptical of them. The other issue . Whats going on with auto sales and profitability . Are we at pique auto sales . May not be well see a huge drop in auto sales or profits fall off like they did back in 2007, 2008, and 2009, but when you look at the annual auto sales and pace of sales, weve at least plateaued, if not pulled back a little bit, and thats going to put further pressure on the current profitability. Fords still going to be profitable this year, less profitable than last year, and, finally, its the question of whether or not auto makers are perceived by investors to be chasing tesla, and by that i mean, when you look how tesla demands multiples, one of the leading reasons, and you hear this all the time from analysts and from investors is the perception or belief that tesla will be developing new technologies and implementing those new technologies before traditional auto makers like ford. Thats the challenge for ford. Thats the reason you look at ford versus tesla. Look at the split. I know theres ford investors, they said thats not fair, ford is profitable. May not be fair, but thats the perception on wall street and with many investors. Thats a picture worth a thousand words, phil. Thank you very much. Phil lebeau. You bet. For more, bringing in jamie from consumer edge research, and john mcavoy of autoline. Com. John, i mean, it just does feel like theres so many pieces of the Auto Industry changings now. Theres electrificatioelectrifi entrance with tesla, issues with whats happened with the emissions whether its vex way again, fiat, whatevers happening there, and bring selfdriving cars into the picture as well. Where do you see the industry kind of headed in all of this . The industrys headed for amazing amount of turmoil. Its not hit yet, but its started. Well not seeing full impacts until the early 2020s, but its an industry going through a massive upheaval over the next two decades after that, perhaps collapsing down in the United States from a market of lets say 17 Million Units a year to potentially only 5 to 6 million a yore. Wow. As much turmoil as way talk about now, theres a lot more turmoil ahead. Real quickly, john, why do you think 5 to 6 Million Units ultimately produced or sold a year . Look, if we go into the car sharing, ride sharing, what they refer to as transportation as a service, if you start sharing, all kinds of different vehicles, youre not going to need as many of them. All right. Jamie, youre bullish on the industry. Broadly speaking, right, do you see as much turmoil ahead . Well, no. I agree with the comments he made, but look at it in a different way maybe. Theres regulators globally coming off manufacturers to make vehicles fuel efficient, a lot of cost of good sold pressures, right . Ultimately its harder and harder to make a profit on vehicles sold. If you dont raise prices, you cant get there, right . Whats happened is low Interest Rates and high residual values made it more, you know, easier rather, for ford and gm, and others to sell a lot of vehicles on lease. Thats changing. Monthly payments are going to go up. People are going to substitute away from new vehicles. Now, where i might disagree is i dont know were making the leap to everybody having a ride sharing subscription. Clearly, theres turmoil ahead for them, make no mistake about it on the new vehicle side. Mike, i like this television as a service, you know, even if its five, ten, plus years down the line. Does that necessarily box out ford right now, or is that what they are trying to figure out . Not necessarily boxes them out from surviving in some form, but if you you have to think about the way the companies are structured, which is to deliver millions of millions of units into a replacement cycle that they think is somewhat predictable. If thats prolonged in a significant way, that knocks them off the business model. The market is saying, fine, we dealt with the peak of an auto cycle before, but we dont know if this is the last peak of this kind well see. I dont want to be doomsday about it, but if im a ceo of a company, i have to ask, is the customer demanding my product or just as much cars as i can by for the Monthly Payment . Exactly. John . Well, look, i would agree with all them. If you believe that this future is coming, why would you build a new Assembly Plant at all . Why was ford talking about building in mexico . When you look at what mary bara is doing at general motors, selling off operations in europe, pulling out of russia, indonesia, south africa and out of australia, this is a company sticking to the strategy it sees coming of this new turmoil coming. Ford has a similar strategy, but its not been acting to that kind of vision of the future. Last question, jamie, even if we head this way, are we only going to sell that many vehicles a year . Possible that, you know, theres still a healthy demand for replacing vehicles and keeping them up to date and so forth . Yeah. The one thing i know were not debating maybe as much on the topic, but agreeing more here, where i push back is on the 5 million sar and timeline to get there. This is an industry that moves at glacial speeds, and part of that is the second most expensive thing most consumers buy in life. They dont think about it very frivolously or frequently, and its going to take many, many steps to get to the point where, you know, transportation as a service cuts in. Its not over for ford. Thats why jim hacketts taking over, putting Transportation Service front and center and mobility, but the question people ask, is there room in my Monthly Payment to pay ford an additional cost to sell them data or better access, you know, my data, you know, its mon big data. Thats the question. If they answer that, the stocks off to the races, but thats why jim has been chosen as the new leader. All right, fascinating, guy, thank you, both. Sure thing. Thank you. On the future of transportation. Hedge fund manager carmen known for value investing, and what a investment in Cloud Computing, winner of 142nd running of the preakness. What he had to say about the play. Federal Appeals Court rejecting the faas requirements that consumers register their drones with the government. Coming up, hear from the plaintiff in the case on this big victory for drone enthusiast. Stay with us. Welcome back. Its fast take time, first it was disney keeping ceo bob, and new cbs is keeping its ceo for two more years. Going through change, media ceos have staying power. Seems like they want security the firm has. Executives are very, very closely identified with the companies, moonves the only ceo cbs in its current form as independent company has had. Easy case to make when deferring the hard decisions down the road. They do have a Strong Performance next. Next, another day and another lawsuit against apple. This one aiming at apple pay. Business as usual, mike, or do these start to make a bigger difference, or does this because its apple pay, a bigger threat . I dont know how big a threat it is, but represents the fact that apple is a consolidator of the companies, bundle into a products, the phone, is subject to these thing. We think we need a fair share based on one small patent, not making a judgment on the merit of the claim, but it seems as if apples going to be the big target. Thats what i think. Next, have you seen bitcoin over the last 2 had4 hours, surged, twenty to. 50, and now its the latest just the move thats incredible, and this is on bitcopy piece today. Making the move a little bit more, you know, a little more wanting to squint at it. The thing seems like its all everyone herding in this direction, and it does do this, it runs in huge vertical streaks, breaks, and then gives back gains. Thats exactly why in a way it doesnt seem to make sense as a currency. All the Digital Payment currencies, finally, i love this as a sign of the top of the hype cycle, a horse called Cloud Computing won the preakness saturday. Wait, the hypermaster behind this was seth carmen, take a listen. Amazing. Came here as a kid, and my birthdays tomorrow, and its just a very, very special happy birthday. Happy birthday. Congratulations. We have the best trainer in the country, best jockey in the country, a great partner, just a privilege. Its a gamble too. Literally, yeah. Whats fascinating, did you look at the other horses . It was, like, top tell me again top docile, priced to perfecti perfection, balance the books, currency slot. So whats fascinating, its more appropriate that all those fancy financial Value Investor terms did win. Riding momentum of Cloud Computing is what got them there. Of all people. I love it. Move over traditional wall street trading strategies, our next guest says trading is no, maam dominant. Discussing this, and about 100 ceos with Public Companies have visited President Trump or other senior officials at the white house. Most of the stocks have been unable to get a trump bump. Thats later on the closing bell. Its not just a car, its your daily treat. Go ahead, spoil yourself. The es and es hybrid. Experience amazing. There goes my sensitive bladder. Sound familiar . Then youll love this. Always discreet. Incredible protection. In a pad this thin. I didnt think it would work. But the super absorbent core turns liquid to gel for incredible protection. So i know im wearing it. But no one else will. Always discreet. Ive discovered incredible. Bladder leak underwear that hugs every curve. Cant tell im wearing it. Can you . Always discreet underwear. For bladder leaks. 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. Welcome back, a right lanely on wall street, dow up 90 points, gains of about half a percent for the major averages with the s p and nasdaq up 12 and 50 points respectively, and russell contributed a 12 point gain. Lets go to susan lee for earnings alert. Talking about the Laboratory Diagnostics company, across the board, a beat, ahead of estimates and revenues, raised epf revenue guidance for the year, and stock up 3. 5 , up over 20 for the year so far. Back to you. Not too shabby, susan, thank. Time for a cnbc news update with sue. Hello, kelly. This is whats happening this hour, every. Jury selection beginning in the bill cosby Sexual Assault trial. 12 jurors and six alternates will be picked. They will be sequestered in the trial which could take two weeks or more. Cosby is charged with the aggravated indecent assaults of Andrea Constand at his home in philadelphia in a philadelphia suburb specifically back in 2004. A large rally in support of gun rights held at the Pennsylvania State capitol making the Second Amendment great again believing gop control of congress would advance their agenda. My bill, some of the bills you heard about today is putting us on the offense, enhancing our Second Amendment rights and supporting it. Thats where we want to be. Students and teachers took to the streets of connecticut to protest an ongoing negotiation dispute between a newly formed graduate yubon and Yale Universi university. The school is refusing to recognize the election to unionize claiming it was held in only a fraction of the number of graduate departments. Thats the news update this hour downtown to you, kelly. All right, thank you very much, sue. Sure. Machines are taking over wall street, and that he have the numbers to prove it, 27 of all u. S. Stock trades provide funds in 2016, up from just 14 of the total in 2013. The wall street journals piece, the quants run wall street. He is joining us now. Greg, whats the feedback been like so far to the piece . Well, its been building. The extent of the interest and acknowledgement of how important quants are on wall street, and starting at this tipping point, i think, where people acknowledge and really realize the dominance, and its not just a factor in the market, but it does dominate. Mike, part of it, by the way, like, have you seen how much dive simon made last year, renaissance technology, what they are up to, but the guys have been renaissance, especially r for decades, now now it feels like all the sudden, theres a maybe it was because theres stone conference last week, theres no major exciting investment cases that are all feels like excitement is, you know, who are the whiz kids with the new algorithms, and which shop are they going to . Seems like its about the process and kind of your data crunching fire power, and your discipline. And greg makes the decision in the piece that there are traders, High Frequency traders essentially trying to capture fleeting moves, noise of the market, and, also going on its really what we called fundamental investing, a disciplined way, using valuation models, looking for clues on earnings momentum and the rest of it, but this is in a bloodless, automated fashion. Here is the question as more and more investors, and you highlighted college endowmentment funds, those people going into the quant funds now. Do they have any idea what is going on at the funds . Anybody going to be able to give transparency about what kind of trades are made or which funds offered will they be in . Even if regulators came back afterwards to look. There might be 10,000 trades a day, right . Theres an irony here, and investors, both institutional and High Net Worth investors, get comfortable with the process, investing in quants, only hedge funds getting inflows now. Money coming out of every other investor, but even as thats happening, its getting more complicated, algorithms are not what they used to be. Yes, its a black box, you can look and do regressions and paths how they do in other markets. Thats what they are doing, but theres a distinction, they are not High Frequency investors, but people that help investments as long as months. That getting people comfortable. I like that. As long as a few months. Yeah. There you go. Finishing the point, in the whole history of investing, have there ever been a moment that the places where everyonements to put money is effectively black boxes . Its not like they get up there, you know, i think hyatts undervalued, worth triple, if you understand that, we all benefit. I have algorithms, whatever, im not telling you about them, and thats my whole advantage, and so effectively you have no idea what im doing, right . Its a very good question, very good concern. You can flip it around, though. Why would anyone put money in traditional antiquated activists or active type investors, performances have been awful for years. They charge way too much. Theres more data than ever that they cant digest. The oldschool talking to customers and employees, you cant do that anymore, so in unless wayings, thats why they are doing better because the other investors are doing so poorly. You agree, mike . Whats fascinating is if you go to an investor not calling themselves a qua trnt, but we g management and stocks et cetera, what the allocators want to know is, do you have a repeatable process . Show me the discipline, the process, and how to make decisions. They want humans to be a little bit more like these processes that have been coded. Also, doesnt help its a low rate environment where maybe before you could take 2 of, you know, of a Management Fee plus profit and maybe expected to make 810 a year, but if you get 56 a year and take 2 , the free structure, regulatory issue mentioned, there was a crackdown on the active management approach, peoples like now ironically its the quant funds with more free range even if that changes down the road. They have the edge. You can argue we dont understand the edge, but the extent they have one clearly larger than those of the traditional active investors who cant. Old days, you crunched numbers, takes awhile, get the advantage, a a call from an analyst before the next person. You cant get that advantage anymore. The extent they have an advantage is the lest one left in the investing game, one can argue. Yeah. You highlighted some great examples of guys where theres bidding wars for their talent, you know, ph. D. Code like crazy, incredibly sophisticated in math, whatnot, but, the question is, for people allocating money now, does it make sense to go with somebody who has a proven historical track record, and what about if they are new to the space, which you know theres going to be, you know, just a flurry of activity in the quant space, make sense to go with someone new on the scene . Im not here to defend quant. Theres few people left with that track record, few left standing, so, yes, is it dependable to plow inquant, and they had done better with the hedge fund world, but talk about a half percentage point over the last five years, and, still, not as good as my vanguard fund, so you dont want to go overboard here, but there are a few here and there that actually have a clear advantage. The renaissances of the world say you can identify some of those, and you may have an advantage. And, mike, we have come a long way from the quant collapse of 2007. Well, theres the risk of some point of herding and overcrowding areas, but that vanguard balance fund, call that a quantitative, owning the entire bond market, 40 , owns the stock market, 50 , and rebalances back to that. Exactly. Quantitative. Everybody says quant, but make an argument that 10 machines today. They are up a point. There you go. Great piece, appreciate it. Look forward for more. Federal Appeals Court delivers good news for drone enthusias enthusiast, those details coming up. Health insurance has until next month to submit rates for coverage under obamacare. The Key Information waiting for, and what it means for patienis. Welcome back. Health insurance have been waiting requester key from the Trump Administration before submitting coverage rates for next year. Kayla has breaking news on the story earlier and has more details now, kayla . Kelly, rates are due in the coming weeks, but information regarding how much the white house will pay to offset the cost of providing those plans for low income participants is not clear. A Senior Administration official tells me the white house will make the payments for the next 90 days, a period in which a lawsuit over the payments is expected to remain on hold. The Justice Department and house of representatives, which are the two parties suing, hope to reach a solution like getting a new Health Care Law signed without the judge having to weigh in. The houses Health Care Bill and those payments in 2020, but between now and 2020, participating insurers would expect to receive 40 billion in assistance according to the cbo. The president mewants to stop paying them, but its unclear until the lawsuit is resolved if the payments are a sure thing or this year after the 90day period. The lobby and Health Insurance plan called it the, quote, single most destabilizing factor in the individual market, and millions of americans could soon feel the impact of fewer choices, higher costs, and reduced access to care without this funding. Top democrats in congress echoing that, senator schumer and congresswoman pelosi saying this created chaos. Californias attorney general said it played political football, but, of course, kelly, one potential outcome is if the white house does decide to end payments in the future, the Insurance Industry could sue. Thus creating another level of complexity. Well see what happens in 90 days time. Yeah, so kick the can down the road for the time being, but i figured because it sounded like coming out of the administration that President Trump was not in favor of this at all, so this is a softening of that position . Well, its unclear exactly who was making this recommendation and whether they are doing so with the president s green light. Of course, he has a very busy few days abroad, and this is being handled currently by Senior Administration officials in the white House Counsel office, kelly, but the president told the economist weeks ago saying well stop subsidizing obamacare and it will break, were not paying the subsidies, but did not say exactly when committed to making the payment or when the spigot turns off. I mean, theres a couple different, you know, aspects to this, obviously, whats at stake for the insurers and how much people pay when they sign up, but theres a general headline on how they see prospects for getting acha passed and the agenda. Thats the part im curious. Tactical and political calculation on whether they continue this after 90 days, and the question i have is, how does the prospect of the ahca fits into that, gets passed, does it become a threat that didnt have to be actually acted upon . Well, it doesnt have to be the ahca, mike. Any Health Care Law, Health Care Reform being finalized would effect evidencely put an end to this lawsuit, which puts payments in limbo. Of course, the administration and Congress Hope to have Health Care Reform within the first 100 days. That was why in february they asked a judge for a stay in the case, which kicked them until today, the deadline, and now they have to give the judge updates every 90 days on how they plan to proceed. Of coursings they hoped to have Health Care Law in place now, but now they hope 90 days from now, but even now thats pipe dream so theres an option to delay after this. Great stuff, thank you very much. A drone hobbyist scores a big legal victory over the federal Aviation Administration. The plaintiff in the case after this. Warning a storm awaits donald trump when he returns to the white house. Jim vandehei joins us. Thats on closing bell right after this. With this level of intelligence. Its a supercomputer. With this grade of protection. Its a fortress. And with this standard of luxury. Its an oasis. The 2017 eclass. Its everything you need it to be. And more. Lease the e300 for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. What . Pony neighing] hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Welcome back. A federal Appeals Court struck down an faa rule set in 2015 requiring recreational drone users to register aircrafts. The court saying the faa violates the rules set in place in 2012 by the faa modernization and reform act. Now, thats stated faa may not pull into effect a model aircraft and while hobbyist and recreational drone users are happy with the latest ruling, others are concerned that this might happen, a drone flying and crashing into the sands at petco park in san diego in a Major League Baseball game over the weekend, how do you track the owner . Welcome, mr. Taylor. Thank you. This one, i know its a weird did you expect to win this . I mean, for the last couple years now, the drone registry has been trumpeted to keep the skies safe while all the drones take to them. I did expect to win it. The the court pointed out the statute is quite clear. In 2012, Congress Told the faa not to adopt any regulations regarding model aircraft, so as long as they were operated safely, which is not included in the brief summary in the beginning, and also had a caveat in there that theres nothing in that statute that prohibited fr enforcing people who operate reck leslie. This had nothing to do with protecting safety. It was it was a political feel good measure, and its not done anything to make the skies safer. So let me ask you this, then, if theres people who are concerned that a drone, you know, crashes in the middle of a stadium, maybe a child how can you track it then, how can you make sure somebody is held accountable for when that happens . Well, enforcement and education are the two biggest issues. More needs to be done when people buy their drones to encourage, hopefully voluntary education on safety issues. And then when people are caught the faa should act appropriately. With them. But this registry did nothing for that. As far as ive been able to determine, in the year and a half its been in place, its never been used to hold anyone accountable. So do you this i that thats where its going to lie . In other words, an enforcement type of approach, if you basically operate recklessly, theyll come down on you, or will there be some other effort, do you imagine, to say that if you are anything commercial use is fine, or a certain air space type of a line that theyre going to draw . I hope its a combination. It certainly doesnt call for this level of federal regulation. There have been guidelines in place for 30 years before this that seem to work. And even nothing before that for many years. Model aircraft were operated safely. And despite these few incidents that made national news, as far as ive been able to determine, as of today, no american has ever been seriously injured by a hobby drone. Its just not the kind of a problem that its been made out to be. Let me ask you this then i was just going to say, when it comes to kind of balancing the regulation of the drone industry, lets call it, i know other countries have been more lighthanded on innovation as a result of that. Are we potentially headed to a place where it might be you dont have the line of sight rule or some other things like that, do you think . Where do we stand, kind of in that tradeoff between safety and innovation . Well, im kind of afraid of that. Afraid for that. So are a lot of people in the hobby and commercial operators. I hope that the faa and congress will take an opportunity to take a pause, and look at this a little more carefully before they proceed. Because right now, the faa is saying that drones are aircraft. This, according to the faa, is an aircraft. Its covered by all of the laws that govern aircraft. If i took this outside right now, i could be arrested and put in prison for flying an aircraft in washington, d. C. And the laws just make no sense whatsoever. So i think they need to take a pause, and come up with some regulations and rules that really make sense, and go after people who are actually breaking the law and actually endangering the air space, which is what the federal statute says, as opposed to burdening hundreds of thousands of lawabiding americans. All right. Again, mr. Taylor, thank you for coming on and joining us. Appreciate it. Especially after a big weekend. My pleasure. Thank you. John taylor. Now your kid doesnt have to register his drone, i guess. Think of a company that has close ties to the white house. Will they get a stock boost . Think again. Well have the details right after this. O 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 we, the entertainmentloving people, want all our rooms to be tv rooms. Because those are the best rooms. 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Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. And get medical help right away. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Welcome back. President trump has met with ceos from a wide range of industries, including tech, insurance, pharma and retail. But being close to the business oriented president hasnt necessarily been a boost to their stock prices, or even their careers. Three ceos are now already out of their seats. That includes just today. And u. S. Steels mario. Eric is here with a look at how some of the white house visitors stocks have fared. About 100 ceos have met with President Trump since he took office on january 20th. When you look at how their stocks have performed, theyve actually done worse than the overall mark. The s p 500 is up 5 since the inauguration. But the businesses are up only about 2 . Contrast that to what happened under obama. Research from the university of illinois show that ceos who visited the Obama White House saw higher stock returns, more government contracts, and reduced regulation on those companies. Obviously its too early to tell in this term to make any real conclusions here, but a trend well watch Going Forward. How effective will this administration be in delivering businessfriendly results. Underarmour, goldman sachs, target, some of the about ig name stocks that have had ceo meetings in the last four months with President Trump. All those stocks have underperformed the market. My question to mike, does it fit into your sort of thesis that this is not a trump trade . That the trump stuff doesnt matter . Or a matter of, hey, with a fullness of time, they look like they benefited greatly . I think target fits into that thesis. It was about five weeks after the election. You had a lot of the heavy Manufacturing Companies that did really well, as well as banks. So that happened. But once the inauguration happened, it was sort of priced in. So i think its probably a selection issue. Although under armour doesnt fit that category. The outliers are still way down. If you have 100 companies, this is all kinds of sectors, all kinds of industries. Yeah. I was going to say, definitely a little bit of a skew to very large established u. S. Companies that might need a little bit of a help, just in terms of the cycle getting a little better or tax help. Interesting to show the manufacturing ceos as well. You know, its not like hes not going to outlast all 28 of those guys. Youre talking about an industry thats undergoing a lot of change. However you would want to put it. The kneejerk sense of, oh, trump is going to be good for manufacturing, look we dont even know what the its almost like the more desperate you are, the more quickly you need to get into the white house to start asking for help. At least with the examples of the three who left. Two under activist pressure, one by his own board, accelerating a successi succession. Right. I looked at the head shots, there are already others already under activist pressure. What do you think . Does this mean that the ceos are saying obviously, youve got so many years to plan it. From the paper of illinois, in obamas case, it was more government contracts, reduced regulations, not just the stock price. Its got to play out over a longer period of time, too. Were just a couple of months in. If theres benefits from deregulation, you dont expect it to hit now. About you you expect the markets to give you a bump, thats the thing. The fact that the president met with 100 ceos, means his intention is to be more business friendly. Well see if it plays out. It certainly already is in terms of regulation. Crude oil is down from the high, so thats why you have the Energy Companies 100 ceos. Thank you very much. Michael, thank you. That does it for closing bell. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlook new york citys times square, im melissa lee. Tonight on fast, President Trump in israel as his International Trip continues. A major storm could be brewing here at home. Weve got the details. Netflix is up nearly 15,000 since its ipo 15 years ago. But are the big gains behind it or is this still a mustown stock . A major move at ford as it kicks out ceo mark fields amid the falling stock price. Weve got a special report on the road to a possible turnaround. But first, with estart off with a rally in the