Transcripts For CNBC Power Lunch 20150320

Alzheimers disease. Call your attention to one stock. Those would be the shares of biojin right now up 7 . Up 30 in the past three months at alltime highs now after releasing very encouraging data on an experimental alzheimers drug. Telling us about it at this time yesterday and shes now back with more detail. Hi, meg. Hi tyler. Incredibly High Expectations for this drug leading into today and analysts say biogin met and exceeded them. Shocking investors saying the medicine appeared to slow the cognitive declines associated with alzheimers and today how well the drug appeared to work both on memory loss and clearing of the am lloydoidloyd plaqued that build up in the brain. Next step, find balance between safety and efficacy. Results of early. Doctors are encouraged and important to note the drug was tested in patients at very early stages of alzheimers disease who might benefit if it reach ares the market. Next the Company Moves the drug quickly into a phase three study jumping over the middle stages of trials. If all goes well analysts say the medicine could reach the market in 2018 or 2019. Now thats a lot of excitement about biogin stocks. Several analysts raised price targets, going as high as 532 because a successful alzheimers drug could be huge estimated up to 10 billion in annual revenue. 5 million are expected to have alzheimers a number that can triple. So many of us touched by it. Thanks, meg. Biotechs on fire. Check it out. Up 45 in just 2. 5 months. This year up 90 , thereabouts, over the past one year. What is driving the biotech boom . Where does all of this excitement come from and how much farther might they rise . Dominic chu with details. That pro shares ultra bio tech as leveled play mp pla fips the return. The booming biotech business a lot of other stocks there doing all right just on their own. Some of them large cap, some more small and medium cap. Look at names. Check out the ishires nasdaq biotech particularly ibb up about 42 , this over the past 12 months. This tracks a lot of those large and midcap maybe some small cap Bio Tech Companies up huge over the past year. Look at some of the large cap winners really driving the performance in the s p 500, these are some of the names were talking about. First look at regenreon. Year to date up 18 . Big name in terms of eye disease. Treat. Big drug celgene cancer product. Vertex and gilead high profile hepatitis c treatment, is a valued y savaldi. Big names in performers. Hot sector. Dom, thank you. Brian sullivan counting russian. One two three here you go. According to baker hughes tyler, down 41 rigs from last week. Interesting for a couple of reasons. One, its a lowest number of drilling rigs out there. Only talking oil now. Lost 15 gas. That is the lowest number of oil rigs since march of 2011. What is also interesting is we were down 56 drills rigs from last week. So while we declined another 41 in oil, the rate of deck clination, rigs pulled off slowed down the first time in a while. 41 lost last week. 56 the previous week. Price of crude oil looking here up a nickel. Not seeing much of a reaction there, guys. Canada crushed again, but a lot of weather stuff going on in canada. Its cold people arent moving rig, whatever. Lost 80 rigs last week. Canada has lost almost half its drilling rigsdown 41 in the United States. Lowest since march 11. Again, guys mandy, the rate of deck clination of the rigs coming down slowed. You were saying wti up 5. 4 now. Look at the sectors on the s p, energy, biggest winner. Back to biotech talking about it a moment ago. Justified or not, biotech is fueling the nasdaq high today. In fact the index blowing past the 5000 mark hitting a new 15year high. Nasdaq currently 5039. Bertha coombs, the big movers youre watching there . Interesting. We are about ten points way from the alltime high close and a new record on that front. This week its really been the big caps that have outperformed on a percentage basis. A lot of that driven by the bio tech names. The biotech index, the ibb, etf up 6 for the week. Seen a little profittaking this morning but seen a number of alltime highs not just in biotechs but across a number of sectors. Facebook is closing out the week at an alltime high. Starbucks after a lot of news despite the pushback on its social Media Campaign also anthem and a lot of other health care names here that are outside of bio techs. Seeing those big moves but really its been those small and midcap names. Those are at alltime highs. Just, again, starting to see more momentum perhaps some because of the dollar influence and chips today are joining the club. Still well off their yaum time highs. None the less pretty big movers today. Back to you. Thank you, bertha coombs. Talking of joining the club look at the dow. Triple digit rally up more than 2 . Well, 2 this week an on pace for the second best of the year. Dow up by 1. 2 intraday. The trading action. Mary thompson joining us from the nyc floor. Quite a seesaw action this week but overall the trend up . It has. Triple ditch et decline yesterday, triple digit gain today. A quadruple witching friday. Broad based gains here on the new york stock exchange. 26 million shares usually see those levels at 2 00 eastern time. Were ahead of schedule. Quickly check the s p 500 because in addition with the heavy volume with the quad witch another factor it played the technicals broken. Nearterm technical level 2109 to 2111. Reason being, the last you saw. Broke through and now helps to extend the rally today. We mentioned earlier, biogen a leader within the s p 500. One of the reasons its up almost or over 1 now along with a number of oil stocks. Of course, benefiting from the gains were seeing in oil prices and darden restaurants, which came out with strong Earnings Report, thanks in part to strength in its long horse steak house chain. Nike, a winner earnings ahead of expectations warning the stronger dollar impacts its revenue and earnings Going Forward, but investors are shrugging off that forecast. Home depot and chevron another oil stock benefits gains in oil prices today. Dows up 211. Wild swings in the market. Dow higher by 200 points now. Yeah, up and down whatever. How do you play this market, and have the risks risen . Katie nixon with us chief Investment Officer at Northern Trust Wealth Management. And also Steve Friedman head of cross asset strategy at ubs Wealth Management lee search. Welcome to you both. Katie, start with you. Have the risks of owning u. S. Equitying markedly increased . Volatility increased, tyler. All im asking about. Real risk. Volatility is risk. Right . Risk around your expected outcome has increased as the outcome has become a bit less certain. What do i do if risk has increased . How do i reposition if at all . So what were telling our clients is, this is a time to just put your seat belt on and try to live through this volatility and sort of peer through the mist to recognize that fundamentals remain strong here in the u. S. And we think the feds going to remain accom in ative. Do they remain as strong as maybe a couple weeks ago in light of the fact that weve gotten a lot of Economic Data that are a little squishy . Right. We certainly have seen Economic Data and a dollar thats rising generally. Think about the Economic Data, we think that gives the fed the ability to be much more patient if youll pardon the phrase, than most investors thought a week ago. So the weak overall macro allows the fed to be were buying companies, not gdp. Buying growing concerns assets a lot of value. A more accommodative fed helps stock. Steve, pose the same question i just asked katie to you. Have the risks of honors u. S. Equities risen markedly . Other than the fact that the market is more expensive than it was a year ago, i dont really see that the risks have risen materially just because were still in a situation where a recession is pretty far away. We dont have easying built in the Company Neither in credit or capital expenditure. I dont see a risk from that signed of things. At the same time the fed basically is ensuring we remain in the sweet spot for equities where there is enough growth out there to deliver Solid Earnings growth, a positive for the market. At the same time withdrawal of Monetary Policy stimulus will be gradual. If i were comfortable, steve, with a portfolio 60 equities right now, and lets say, oh ten Percentage Points of that was overseas stocks would you change that mix in any way . Would you be reducing the u. S. Portion and increasing the overseas portion . Thats actually what weve recommended since the beginning of the year. The u. S. Has been our favorite equity market for a number of years, and this year weve been really growing more comfortable owning eurozone stocks. That now is our preferred region and really just acknowledging that eurozone is in a different phase of the cycle. Much more potential for earnings once they grow due for instance to the weaker euro for earnings to grow faster than in the u. S. Its become a much more attractive to look into the eurozone. Katie, you . If my typical mix was 60 stocks, 40 firsted income would you be changing it in any way now and if i had, lets say, ten Percentage Points in foreign shares would you be upping that or leaving it static . Wed have a little more than that in european equities, tyler. One thing, thinking about increasing that, actually. One of the things that holds us back is the fact that the fundamentals on the earnings side havent improved. Actually seen earnings estimates in europe . In europe. Flail around and fall in some sectors. Until we see improvement looking at a Market Selling above historical average from a valuation, were going to hold back. I infer in what you say europes rise a monetarily driven . We saw it in this country. Financial assets move first and weve seen it in england. Enjoy the snow. Gotten tired of seeing brown earth and grass. Getting boring. Steve, thank you as well. Bow to power lunch. Cnbc. Com to see what they think are the greatest risks to the market. Trying to enjoy the snow. All weve got. Despite today is the first day of spring. Mother nature giving a trick, bringing in the snow rather than flowers, least here in the east. This is the weather channels dr. Greg postel with more. Snow continues across parts of the northeast. Philly, new york hartford likely snowing. Should all end from southwest to northeast across the region late this afternoon and the evening. My guess by about 7 00 8 00 in new york should be done and in southern new england, going to take longer because the system heads out to sea by i11 00 tonight, all over. Central parts of new jersey on into parts of long island and central connecticut. With temperatures slightly above freezing, good news. And im not sure whether thats good news or slushy news but dom chu a market flash . I do. Watching shares of whats happening with one of chinas leading internet tv companies. The shares hitting 52week lows today. The companys Earnings Report yesterday showed losses continued to deepen rising to 143 million. A loss of 94 million in 2013. Revenue last year grew by 33 . A flip side of that story. Youku listed on the stock exchange, questions, inquiries with regards to its accounting in the past so those headlines, at least, possibly weighing on those youku shares in trading today. Back to you. Thank you, dom chu. The snowstorm on the first day of spring got us thinking about all the puddles around the country that need filling. Guess what . Theres a trade for that. The infrastructure stocks that could get a springtime bump plus the dollar demem la. U. S. Stocks battered by the strong greenback. Talk more about the double edge sword of that Going Forward. Do you have something for pain . I have bayer aspirin. Im not having a heart attack, its my back. I mean bayer back body. It works great for pain. Bayer back body provides effective relief for your tough pain. Better . Yeah. Thanks for the tip welcome back to power lunch. Business and Data Information company popping on speculation about a possible takeover. Reuters reporting a consortium of bidders including silver lake among others considering a bid for the company. Ens you see that move in midday trading. Mandy, back to you. That move equates to a percentage of the up side. And nike warning a strong dollar will hurt the current quarter. Darden restaurants up 4 . Other than of olive garden beat the street in the Third Quarter thanks to cost cutting and better than expected sales. A different story for tiffany. Moving to the down side by 3. 3 after the jeweler posted its first Quarterly Sales drop in five years. Im sure the strong dollar may be hurting its tourist Flagship Stores like in new york city as well. Over to you, ty. Mandy, thanks. The calendar says today is the first day of spring burt the weather map tell as different story as we just discussed. Yet another snowstorm coming to the eastern seaboard today and this brutal Winter Weather and record snowfall in many parts of the country resulted in monstersized potholes around the country. On the nations roadways. Many in the northeast. All of which need filled over the next few months, fingers crossed. Where theres pain theres usually profits. Fivestar manager josh deitz run the Infrastructure Fund welcome to power lunch. I cant imagine, frankly, that there is a big profitable stock market play in filling potholes in newton mass or Bergen County new jersey. Theres not. Marginally incremental. Most of contracts of governments . Using aggregates you cant invest in. Those Companies Like Martin Marietta and vulcan. Buying the material from those manufacturers. Exactly. Your focus is more on the big, broad dekeg infrastructure bridge tunnels. Airports and the like . Absolutely. And where do i make money in that . Completely disrepair of our roads in the United States for instance. And basically the American Society Civil Engineers rate our roads with a d. Thats a grade they give us. How do we invest here . A good example is a private company starting to invest in the United States. A company that we own in the Alpine Global Infrastructure Fund actually building roads in texas. Theres existing roads, on the expressway and lbj expressway, build additional lanes on the roads and have congestion pricing. Every five minutes they have the ability to change a toll or tearive and the goal keep traffic moving 45 top 50 miles an hounchts will the company own the road . Concession on the road for 50 years in partnership with the dallas fire and chief land. Farovial based where . In spain. Own the Heathrow Airport and toll flowed canada. A great toll road pap 99 year concession on that road and the ability to change tolls as much as they want as long as traffic is quickly, are any of the big cement companies on your buy list or in your fund that you like . So i do like heidelberg cement. A European Company with about 25 of their revenues and profits in the United States. Josh, thank very much. Appreciate it. Thank you. Get home safe. Dont hit any potholes. Tough to avoid. Dont want to ruin the rims. Maybe the money in the infrastructure stocks pay it straight out in car repairs. Right . Yeah. Okay. Dollar dilemma. The gleeback may be on the losing end today but steadily climbing since the middle of last year and its become a double edged sword for the economy. Diving into the dollars impact. Sara eisen, whats the angle youre looking at with this . Mandy, this was a historic and monumental week your currency. The biggest and wildest move seen in years. Plus, comments from the treasury secretary, and the chairman of the Federal Reserve, all on the strength of the u. S. Dollar. Highly unusual. Ill tell you how it will impact the currencys next move. Morgan . The stronger dollar already having an impact on one industry so much so weve actually seen three Different Companies warnings on earnings just this week. Well tell you all about that when power lunch returns. Youre driving along, having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. 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Mr. Santelli, as always is covering it for urs at the cme. Hi, rick. Hi, tyler. Look at a twoday chart, a couple things jump out. First, yes, down four basis points but for the last several hours plus real tight range right around the 194 level. But we are down 18 basis points for the week. Boy, tell you, ive been down here a long time. A long time. Since the carter years on these floors. I dont know ive seen many days where all the currencies are ganging up in such a huge way against its green back. So lets look at the dollar index. Look at how many handles weve kov ared. Now look at the antagonists, pound versus dollar. Euro versus dollar. Switch the vernacular. Dollar versus swiss, even to dollar versus the peso and i didnt put up the aussie and canadian dollar. A big preweekend move. Maybe the trigger was greece. Goes to show you how foreign exchange, the price of poker has gone up. Tyler, mandy, back to you. The king dollar had it good so long, ricky. Bullying wun hurt it. Look at gold prices because of that weak dollar. Today, lets look at how gold is doing. Currently up by 16 a troy ounce at 11. 85. Enjoying time in the sun there on the weaker green back hitting a twoweek high and i believe, ty on track for its biggest weekly jump since january. Weve got up there, got silver copper palladium, plaid num, all of those moving up particularly silver and copper. Is the bond market in trouble . Power lunch has been all over this. The fears about liquidity. Top fivestar bond fund manager tells us what hes seeing and get his best high yielding place. Plus the cfo crisis. Why are so many chief Financial Officers leaving their roles and why is there such a shorestage of them now . Weighing in on that topic. And i think youll be maybe a bit surprised to hear what he has to say. Stick around. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Introducing the new canam spyder f3. With a cruising riding position and the most advanced vehicle stability system in the industry. Youll ride with a feeling of complete freedom and confidence. Visit your canam dealer and test drive the spyder f3 today. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Im sue herera. Your cnbc news update. Three suicide bombers hit a pair of crowded mosques in the yemen capital city of sana. 126 people reported killed and injured, hundreds more. The mosques are controlled by shiite rebels, yemen is said to be home for al qaeda forces and supporters of isis. Its not clear who is responsible so far. The Obama Administration released new rules on fracking. Companies that drill for oil and natural gas on federal lands will have to disclose the chemicals that they use. There are also new rules on disposal of water and other fluids used in that process. The industry has expressed fears that regulations could hinder of drilling bomb but environmental groups worry as polluting groundwater. Jetblue tops a new survey in Airline Customer service. The airline received an overall score of 75 in the experience rating followed by south west and delta. On the other line Spirit Airlines came in last with a 47 rating. This next story sounds like an april fools joke but well have to wait and see. Bugger king ads in japan reportedly are promising a limited Edition Perfume that you make you smell like a whopper. The company did it a few years back here in the u. S. Way fragrance calmed flame. The ads say the 41 scent will be sold for one day april 1st and come with a whopper. Lets go back to mandy. Mandy . Im going to pick my jaw up off the floor. Do we know how the flame sold . Was it popular . I do not know how the flame sold. We will wait and see how this goes in japan. If japan can do it anyone can. A better name than whopper, as any rate. Hmm. That fragrance of whopper. Hmm. Its lovely. The dollar is sinking down more than 2 this week against the worlds major currencies but it is up 4 in the past one month. Sara eisen of the nyc, Morgan Brennan on the stocks impacted by that dollar. Sara, take it away. Mandy, a familiar refrain from the u. S. Treasury secretary. Treasury secretary jack lieu and ones before him say in miami the strong dollar is a good thing. But is it really . A lot of Corporate America does not think so tiffany and nike most recently showing how it cut into corporate profits. Neither does janet yellen who weighed in saying the dollar is Holding Export growth and pressure aring inflation. Wipe do the fed and treasury seem to be saying Different Things about the u. S. Dollar . A strategist says l iu, his comments likely tied to the dollar from the fed and nor defract yellens comments on the currency. Meaning, even though the Treasury Department actually controllings dollar policy the fed has enough power to talk the dollar down. So if yellen doesnt like the surge, traders should absolutely take note and thats pretty much the story of the week. Hsbc certainly did. They became the first major bank to say the dollars rally is ending that the big policy divergence between the Federal Reserve and the European Central bank already priced in. Certainly not the consensus. Most analysts saying the dollar will continue to rise but no matter what the Federal Reserve showed this week that it has the power over the currency market to set back the dollars ferocious climb by almost 3 on the week at least for now and tyler and mandy, this is a big move that we are seeing just the latest in the string of them over the past few weeks and months. A lot of big moves in currency in the market. Not all that accustom to see them. One sector hit by the strong dollar is the u. S. Steel business. Theres the etf that tracks steel stocks down 10 so far this year while the dollar surged 8 . Morgan brennan is here with more on the state of the steel stocks. I think that chart says it all when you talk about American Steel companies. Really on the front lines of the socalled currency war. So to see what im talking about look at another chart. This is shares of ak steel to see what i mean. That stocks down about 6 so far today after the company warned of a bigger than expected First Quarter loss. Thats really thanks to a big drop in shipments. Why . Well a flood of steel imports. In january, imports were 33 higher than a year ago. Record levels. Thats according to the american iron and Steel Institute with south korea, turkey japan and brazil all posting the biggest increases for finished products. See it there. Aks isnt alone. Thats an two other u. S. Steelmakers also guided lower this week. New core and Steel Dynamics blaming imports leading to a supply glut wushs u. S. Price spushing u. S. Prices here. You can see it here. Down almost 21 so far in 2015. Add in slowing demand for steel thats used by oil and gas drillers and Analysts Expect another tough year for the industry. Meantime, you look at the steel stocks. The u. S. Steel stocks. Theyre trading mixed today. Ak steel is down but the others knew core and others trading higher due to the fact weve seen the dollar come off and also the fact weve seen crude rally today both of those things helping lift these companies, but, guys this topic, steel imports, going to continue to be in the news, because weve got a kongs congressional hearing many of these companies testifying on this very issue. Thank you Morgan Brennan. The market riding the volatility seesaw all week. One day soaring, next day down for the dow and s p today is the eighth consecutive session they have seesawed between gains and losses. In fact, this is the longest seesaw streak in nearly two years. So whats the best anecdote . Bring in brian singer head of strategies at William Blair and michael farr president of farr miller and washington. Great to have you with us gentlemen. Michael, its not weve gone sighways over the sort of seesaw moments. You know weve actually trended higher. Its difficult to see through that, and have faith in the trend when it is so choppy. How do you deal with that . Well i think its hard to see through it through the choppiness, because, again, were only up about 2 this year. I think we still are trading on every breath and ubt ertterance out of the Federal Reserve and it was weird. Right . Remove the word patience and took all the pains to tell us they were still patient. So i dont think anything really big changed there. Earnings are kind of coming down, not as strong as they were. The Economic Data the fed said really not at encouraging. Both of their mandates you know employment and inflation, arent nearing their targets. It looks like theyre going to be around a lot longer and, therefore, perhaps this market probably has further to go. But, michael, nonetheless, sounds like youre playing defense. Feeling cautious . A little defensive . You know mandy, i manage other peoples money. Right. And after the markets gone from what 6700 in 2009 to 18,100, this is not the time to get aggressive. This is a time where you want to make sure you know what you own, and that youre really preparing clients for a downturn so they ken dur. They dont get nailed too badly if and when it turns. It will turn and that they can still there be to enjoy the next rise. Brian you talking, trying to see through the choppiness and having faith in the trend despite what weve seen this week alone in the dloor dollar you still have significant currency positions. One is having faith in the dollar Going Forward . Its having faith in the dollar Going Forward, but what we have to realize is that Central Banks in particular the u. S. Federal reserve, is uncertain about its own policy. And that uncertainty is translated right into market pricing, and thats the vol tilting they volatility were seeing now. Aggressively long and reduced it. You have reduced. Okay. Nonetheless what would you play it against . Which particular currencies would you play the dollar against, even if not at bullish as you used to be . Urineeuro, swiss bank and those are the short position wes v. When you look at an 18 yield on a german bund with a declineding currency or a tenyear with appreciating currency, that gets to be a nobrainer. It does. What would you do with regards to bonds . Over to you, brian . In the bond market generally flat. Interestingly, long in the u. S. And short outside the u. S. The u. S. Is a highyield bond market these days. Outside the u. S. We have about 15 countries yeah i know. Amazing. About 15 countries at the twoyear level when the Interest Rate is actually negative pup have to pay the government to lend them money. This is not a sustainable situation that creates massive Capital Market uncertainty over the coming years but it does mean that when the ecb comes in and buys bonds, we have to think about liquidity and position ourselves accordingly. Yeah. Absolutely. Interesting, isnt it . A new normal when talking about high yield these days. Quickly, brian, you prefer over u. S. Equities emerging asia and europe . Where youre putting your money . Absolutely. The market is very fearful of what is happening in those areas and what that means, prices left below fundamentals. Theofthe world thought the u. S. Is the stable point of growth up to fundamental value we believe theyre at roughly today. Dominic chu, thank you, Jeh Dominic Chu has a market flash. What are you looking at . Shares of Nutritional Supplement herbal life moving higher, up side now. Two days after a federal judge dismiss add lawsuit alleging the company is a peeryramid scheme. The move could be tied to short sellers closingous positions. Midday trading exceeded the full day average share over the last three moss and just in the last hour Hedge Fund Manager bill ackman came out responding to this saying there was not an exoneration of this court ruling. Well watch herbal life shares as well. Thank you, dom. Silicon valley business have so much trouble hanging on to cfos. There are somewhere the cfo has left recently nap story straight ahead. Plus a new bus Service Launching in San Francisco this week, but a ride isnt all its offering. Josh limitpton has that story from San Francisco. Tyler, here in San Francisco, forget public buses. Its all about privately funded luxury buses. Thats how you get to and from mork nap story work. That story next on power lunch. And a lot helping you. Technology thats with you always. This is our promise. Its never been better to wander because wherever you go, youll find us doing everything we can, so you can. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back to power lunch. The nasdaq up about a percent today. A check on the Nasdaq Stock Market movers. Among larger cap names shooting higher, mention it again here. Biogen, heard it earlier in the show. Best performer in the larger cap nasdaq 100 index on the heams of positive heels of an experiments almost hymer drug and alongside other russian traileded equities here in the u. S. Keep an eye on semiconductor and computer memory Companies Like sandisk and intel, all four powering the nasdaq gains today. Thank you for that. Dominic chu. A new bus Service Launching in San Francisco this week but the service goes beyond just providing you with a lift. Josh lipton is live in San Francisco. My interest is piqued josh. Fill us in. Reporter well, mandy, im riding in a new bus Service Called leap which launched just this week here in San Francisco, and this is a very different alternative to public transportation. Its easy to use. You just sign up. You find a bus on the map, and can you do that by downloading the app or you go to the leap website. You hop on. Scan your qr code. The cost is 6 per ride or if you buy a bundle its 5 per ride. You get free wifi, also mandy, a lot of snacks for purchase granola bars yogurt blue bottled coffee and there are some big names in Silicon Valley big believes in leap. This start upraised 2. 5 million from Andreessen Horowitz and sales force ceo mark benioff among others. Theres competition. Another startup named cheruiyot which raised 75,000 rides and doesnt offer the same perks as leap. Its less expensive, 4 per ride but the ceo says his service is better than the competition. More comfortable, faster than Public Transit and much more affordable than the pointtopoint Services Like uber and lift during commuter hours. Reporter now currently cheruiyot runs on four routes in San Francisco. Two, the ceo says their already profitable and this week launched a crowdsourcing campaign. The idea a commuter highlights the route they want. If enough do they create it. Right now in San Francisco, still a lot of people use Public Transit. Some 700,000 passengers a day, but you talk to the ceos of leap and cheruiyot and they are having a lot of fans and they have big ambitions, both hoping to expand beyond just the city by the bay. Back to you. Im thinking of the movie speed right now josh. This week ubers ceo stepped down and in the past months seen red hot startups ceos move on. Why are so many big sill con ceos having so much trouble hanging on to chief Financial Officers . Who better to ask than the former ceo of trulia. Welcome. Good to have you with us. What do we know why several or any of these stepped on . Often when a person leaves its because of a very personal reason. Look sometimes there is no fire, and there is no smoke. A cfo has been in the job several year done everything they can. Companies in a great footing. And its time to move on for either professional or personal reasons. However, many times especially for latestage private companies, i see something very different. Its either we dont like you anymore, or it is i dont like you anymore. In the first variety, the we dont like you anymore what happens is companies tend to hire a cfo a little too early. Raise the series b or c, hire a cfo and suddenly things take off. And there is a lot more revenue. Hundreds of millions of users. The companys going international. And the complexity can overwhelm the cfo who is just right for that last stage. Right for the last stage but maybe not right for the next state of. In any of these case doss you believe that is the is the explanation . And i would think sometimes the skill set you would need if part of a company like uber and im not asking necessarily to comment there, like uber that son the cusp of going public that that skill set is very different than the one for the person who would have come in at the Building Business stage . You know exactly. Right . So a cfo who was right for when you were a 200person company with 50 million in revenue, is very different than the cfo thats necessary when you are a several thousand employees and operating in 30 different countries. Several hundred million of revenue. Look at facebook. A fab lick krfulous cfo. He was there third cfo. So this happens. Right . The we dont like you anymore. Theres a second theme, tyler, which is the, i dont like you anymore, and thats you know less frequent but i do see it. And this is when a cfo goes into a situation where you might have a very strong perhaps a difficult founder, and a difficult culture. I cant imagine any of those in Silicon Valley sean. Right . I cant imagine any of them. Go ahead. Finish your thought. As i said, its rare. And you know a couple of years go by and the cfo has been working 24 7 and things go well. Theres a lot of value thats been created and the cfo says look, do i really need to do this anymore and put up with this anymore . Made their money and want to move on to something else. You know we introduced you, sean, as the former cfo of trulia. Tell us a little why you moved on. So we at trulia an online real estate site sold the company last month to our archrival zillow a fabulous merger of the two companies. Theyve come together. We closed the merger about a month ago. Ive done everything i can for trulia and am moving on to something else. We will see you down the road, sean. Thank you. Appreciate you being with us. All right. Thanks for having me. All right. Exploring the Worlds Largest cave with the help of a drone. Look at that. Unbelievable shots coming up next on power lunch, and drones lifting up shares of amazon. Federal regulators giving the green light conditionally for the company to begin testing drones outdoors. On monday on power a rare sitdown with a favorite guest, always fascinating author michael lewis. Power lunch gave you a front row seat. Flash boys one year later, hes got an addendum to it. You wont want to miss my conversation with michael, monday at 1 00 p. M. Eastern time. Always good to see him. The quietest or nothing. The sleekest. Sexiest. Baddest. Safest,. Tightest,. Quickest,. Harshest. Or nothing. At mercedesbenz we do things one way or we dont do them at all. The 2015 cclass. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Do y ou like to travel . Im all about free travel babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Here this hours power points. Experimental drug, optalzheimers disease, hitting alltime highs on the news. And making it easier for foreign steelmakers to compete in and outside of the United States. And rig counts in the u. S. Falling by 41 for oil, 15 for that gas last week now at low four rig count in the u. S. Dating back to march of 2011. Now if you missed any of the big stories, either these or others in past visit our site at pow per lunch. Cnbc. Com. And stocks up 15 this year so far, but are you in or out on biotech . Thats the Yahoo Finance question of the day. Take a look. 22 say, yes, im in. 36 say, no it is bubbly. And 41 say, im diversified. Just some in biotech. Theres a look at that. Eclipse watchers across europe from rome to turkey turned out this morning to get a look at a Solar Eclipse. We will bring you some of that spectacular video next as we listen to one of my favorite songs. Here comes the Sun Financial noise financial noise financial noise [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Power lunch is a great show but also another great show. What changed for the group that has nearly every single stock higher this year . Or is nothing changed at all. Plus is one major Hedge Fund Manager right when he says capitalism kind of screwed up. For now apparently a Solar Eclipse reader tyler off top. Im going to put on my special glasses so i can look at this Solar Eclipse. Look at that. There it is. Eclipse watchers across europe from rome to turkey turned out to get a look at a Solar Eclipse. If you wanted the real perfect view, you had to get on a plane and go to the pharaoh islands a tiny group in the north atlantic, one of the only places where the sun was totally obscured theres one of the guys by the moon. More than 11,000 tourists headed to the pharaohs to get a look at this astronomical marvel. Humming a bunny tyler. Total eclipse of the sun. Anyway, check on the nasdaq above 5,000. Back above 5000 and hitting new 15year highs. Up five days straight now. Yeartodate up more than 6 folks. Currently sitting at 5038. Lets look at how the sectors on the s p are currently faring. With crudes big move higher today dollar lower crude Higher Energy is the biggest gaining sector up by 1. 8 . All ten sectors higher right, ty . Youve got industrials which is the least high but still up by 0. 7 . And a quick, final thought, mary . Tyler, a strong rally closing out a strong week for the markets. A oneweek chart of the Dow Jones Industrial average, stare action up down up down finishing to the plus side. S p breaking through a key resistance nearterm resistance at 2111 that helped the broader markets extend the gains. Tell you looking at the nasdaq seems unbelievable we are about to close or possibly surpass records or numbers we thought wed never see again. For those of us who are here back in 2000. Not sure wed ever see 5048 close, above that for the nasdaq. Well be watching. Thanks mary. That does it foreign the the first hour. Brian sullivan hand the second hour of paula. Power lunch over to you. Do my best. It is 2 00 on wall street. 7 00 a. M. In america samoa. Youre watching the second hour of power lunch. Im brian sullivan. Its turning out to be another huge day, melissa. What is not up . Hard to answer brian. Were looking at new records here. Intraday, 5132 train day high set march 10 2000. 5048. Numbers to watch. Here we are, 5039. Up by almost 1 . What helping drive the gains . Looking at facebook. An alltime high in shares of facebook. Of course, a large cap gain certainly helping the nasdaq to the up side. Chip its across the board are strong. Look, though at intel. Not quite back to the levels prerevenue, a warning, but seeing a nice week for intel up 2 for the week. 2. 6 on the day. And this has been a powerhouse in sort of the Smart Home Technology smart car connective car area. A new high. Look at bio techs, yet another new high brian, leading us to the first discussion of the show. Yes indeed. Not using the other b word bubble. Stats, those coming up. Shares of biogen soaring, promising alzheimers drug. And Citi Investment Research and biotech investors with esquared Asset Management but begin with you just upped your price target on biogen to 512 from 410. Why did you do it and what makes you so confident biogen will have the revenue and earnings from this drug that will justify it . If you look at biogen the company, the base business will grow almost 20 in the next three years. The companys trading at 21 times next years number. Its very reasonable for growth stock. As you know. Many much less attractive posting almost no growth at all and a solid pipeline. A lot of data over the next 12 months. Important data in alzheimers. The target price, based on multiple. Next years number reasonable and stock up from here. I can understand how you got to the price target. Justify the 20 times multiple . Thats catching my ear. 25 times is not a low multiple. For a company of biogens size particularly. If you look you know historically, these company, trading at 30 times, when they post 20 growth. Theres not many businesses in the s p that will grow 20 , as you know the s ps trading roughly 16 17 times and the s ps probably going to post 6 7 growth. Looking at defensible 20 growth in a pipeline longterm, it justifies it. Common in biotech. Are you concerned about the latestage study begin later in the year for biogens alzheimers drug . Its tested in early stage patients and so may not have the same efficacy as in latestage patients. Could it be a tape bomb in other words, for biogen later this year . Yeah. The date taye later this year will be more followup from the current data and well get yore one of their doses theyre trying to find. The data today showed efficacy but there were side effects and try to figure whats the best dose to get the best eck casefficacy together. This wont get to the market to be clear, until 2019, but a part of the very robust pipeline. Thats important for long term but for the current time being, theyre going to do 20 for the next three years with potential upsets of price in the pipeline. This is probably an upside longer term. So in raising your price target, your price target was already below where the stock was trading. Had you to bump it higher. In terms of the 512, are you building in too much optimism since this is a drug that wont hit the market for many years and youre raising already 12 months . A fair question. Look at the next 12 months theyll have data from one of their drugs, for stroke. Data in patients who have hardened pulmonary, cant breathe well, datea on malt pellultiple color rose and shooting pains down their legs called sciatica. For the moment going up. The sector is well and multiples expanding and the entire group expanding in a 25 multiple is where these stocks are trading now with stocks that are posting good growth. Sure. Doctor thankss for your time. Appreciate it. Now bring in an investor in this space. So les, the doctor mentioned this space is en vogue now. Youre an investor. Are you seeing nonspecialists come into the space . A chase on performance. Attracting investors who may not have the wherewith all to know what these drugs are and what the data means . We are. Its hard to quantify this. Sure. But just by people on Conference Calls and people in meetings more of the traditional long only generalists are coming into the space, obvious reasons. Is that alarmthat alarming . When everybodys in the boat theres nobody left to get in the boat. I dont want to use the b word, bubble word overused nobody ultimately knows. I did 150 stock screen are and ive been shocked at what i found. Take a look to the statistics and tell me why this should not at least concern some people. Of 150 names in the ibb, 28 are lower. Thats it. 17 are up more than 50 . And les, 64 , 43 , have more than doubled off their 52week low. Has something fundamentally changed in the entire industry that makes every company a success like the market is obviously predicting they will be . Well id make a couple observation. The premise behind your question if were in a bubble then there must be a burst coming. Just a few observations on that. You know low Interest Rates are supportive of risk assets like biotech. So as a general rule thats going to be uoyant to the sector. Also, you cant compare the valuation of a Cancer Company to say an alzheimers company like biogen. Hard to do. Other sectors are easier to compare. So there are i want to be clear. Want to be clear and you and i have been interviewing a long time. I respect your views 100 . Tosh clear, not saying theres a bubble or necessarily a bust. I guess in the time that melissas done this a long time youve done it a long time ive done 2 long enough. Not every company in biotech will succeed, not every drug approved, not every drug will be great. I look at a market almost every stock sup, completely related to only Interest Rates, then when rates rise were saying some of these name in trouble, because theyre not trading on their medical fundamentals . I would agree in certain sectors. Its harder especially in the small caps to find value. Whereas maybe last year it was easier. But, again, you know companies with really good fundamentals, and i agree that many of them dont, you are where you want to be because like you saw with biogen today, good drugs and good results will ultimately drive value. Speaking of biogen les, your stock pick. You have lily. At an 11year high in todays session off the back of this. Their latestage study not wrapped up until the end of next year. Are you concerned theres too much not a bubble but too much optimism built into these stocks way ahead of the final data . Right. At least on this drug, you know you have to discount appropriately, because its alzheimers and a very hard disease. And we dont know what causes it. Perhaps, you know enthusiasms gotten overhead versus cash flow. To your prior guests point and with lily there are other things going on at this companies. Theyre not single Drug Companies and support some valuation and then you can discount, take whatever probability you want. It just went up today because weve soon good results. Les, great to speak with you. Brian . All right. Outside of bio tech more oil rigs getting laid done last week. Baker hughes reports that 41 oil rigs came offline. That is a lot, and its the fastest, in fact, steepest move in about 30 years over the last couple of weeks but the 41 that dropped were fewer than the 56 that came down in the previous week. So the rate of decline at least for one week is indeed slowing. Something to Pay Attention to. Well since the oil plunge began, individual investors have been piling into the oil trade through the oil etf. Especially the widely traded uso. Now, the Financial Times says that almost onethird of all u. S. Oil futures contracts are now controlled by Exchange Traded funds. Which means, america, theyre likely controlled by you. Because mom and pop are the big buyers of etfs. Lets bring in a guy who is a pop. The managing director of tgm uns stushl services and cnbc contributor as well. I got to imagine people are buying these things thinking oh oil fell. Must be underpriced and going to snap back. Do you think that is a dangerous way to think . Well theres a couple different facets to this. And, no i dont think its a dangerous way to think. I think the inclination to buy something after its cut in half is probably better than to try to jump onboard and sell things after theyve been cut in half. I dont disrespect that way of thinking. I think the uso might be a flaw the instrument because of the contango in the futures contracts. Think of it this way. A normal contango a bid for storage. At the present place in the oil world, storage is the key issue. The contango is steep. Every time they have to roll the contracts, roll them into a higher priced contract that decays the upward momentum of the uso. Uso gets a c, in my opinion, as Investment Vehicle and the only reason i give it a c, passing grade, theres not many other pure plays available to the average investor. The uso is different. Just commodities in general, the reason they can be dangerous for the individual investor is that it is an instrument where you are often trading against a producer. If you own a stock, i want to buy a stock, probably not buying it from the ceo who knows noorn i do but you can, hey, youre a producer of fertilizers, gold whatever you r, you might be active in the commodity market. Point two, the uso, said it many time, average price of a barrel of crude oil about 48 to 50. Buying the uso because you automatically its cheap, guess what . Were exactly in the 25year generational ban for the price of oil. Okay. You and i are going to disagree on something for the second time in a week. Fine. I enjoy this. So the commodity trade now youre right. If oil was beating to its own drum and gold was as well then you are trading against the producers. Thats not really what were seeing now. A large part of both of these Commodity Trades and 30 other Commodity Trades is the dollar. The dollar versus the euro specifically. If you believe the euro is bottomed and we have decent reason to believe that, if the fed was supposed to the only adult in the room says perhaps theyre not tightening in june or september, october, then maybe the euro rallies and these commodities will be carried an with it regardless of the supply story. If then you are a mom and pop that is buying oil etf, the uso or other, are you actually then acting as a de facto currency trader as well . Not just trading oil, youre trading the dollar . Doubled deriv fiv inative in. Yes. 50 50 thing. My oil guys so supply issue. I definitely think youre at least a 50 50 currency trader. Instead of going to the uso thing with decay, eprefer the xle, paying a dividend. Were in a low rate dividend. Xle all the iconic blue chip american integrated oil producers. I think thats a better way to go. Yeah. Well said. Good argument. Good discussion. By the way, jim, if you see your buddy jeff tell him notre dame looks shaky and better step it up. I agree and i will. Thank you. If they lose im done. A big decision on Cable Companies in cappedcanada that may impact the way you watch tv here in america. And provocative comments from one of the most successful Hedge Fund Managers ever about the corporate mentality being too focused on the short term as capitalism, has it taken a wrong turn . What do you think . Let us know. More power lunch, two minutes. The road. It can bring out the worst in people. But the mclass scans for danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Takes a a look at markets at the s p 500 sits a point below sessions high leading us higher to foepd session. Up by 1. 7 financials doing nicely and staples. And melissa, it maybe the most sweeping reform in the Television Industry by government regulators happening in canada. Beginning next march canadas version of our scc allowing them pick their channels a la carte ordering. Buy a basic tv package capped at 25 a month. The fcc is not close to doing Something Like that here. If it ever happened what cable stocks would be the winners and losers . Craig moffitt, founder and Senior Analyst and i should enforce the normal disclaimer our Parent Company is of course, comcast which is a startup Cable Company some people might have heard about in america, but, craig, get into it. Is this ever going to happen here . Well, its certainly not going to happen here through any fcc process, brian. I think it is look theres a court case going on now between viacom and cablevision winding its way through the courts talking about unbundleing. Theres always been a black swan event court ruling saying this is forced by the courts but otherwise, i think its relatively unlikely to come here anytime soon. Let me back up a bit, then craig. In some ways with the apple announcement i have comcast at home. Theyre in my area and im an employee obviously but i also use apple tv. Hd my switcher. Right . Is it already happening with Apple Television and apps in a whip thats unbundling around the end of it . Yes and no. You know look theres three levels of bundle that go on inside of the content bundle, if you will. So individual shows are bundled into networks. Then networks are bundled together into a media con clop conglomerate and theyre repack achd as a subscriber. Youre seeing bundling on the front end. Netflix unbundling shows from networks and from the other end. Apple has a deal with everyone other than disney sling tv another one of those services has deal that includes disney but not viacom. So the media conglomerates are getting unbundled from each other. Youre not seeing unbundling of the networks within one of the media conglomerates. A lot of power to force you to take the whole package. You told our producers earlier unbundling like in canada would be a negative for Media Companies and distributors yet the argument made and the way the stocks reacted when apple tv was announced it would be a positive for the content distributors because it could give them the upper hand when negotiating carriage license fees. What is it . Because isnt that we just said that was a form 6of unbundling itself . Its really not. If youre disney youre driving into the apple bundle. Your entire suite of channels or paid as if youre driving in your entire suite of channels. Youre not really unbundling theres is risk youre a content provider whos left age the boat. Thats a genuine concern some investors have and justifiably so youll pick winners and losers between the bundles. But theres very little impetus to force the Media Companies to unbundle their packages. One more thing. If youre a cable operator comcast, time wariner or charter, the package you sell is also a bundle of distribution. Its content and distribution bundled together for a single price. Would we have any idea what an individual channel might cost . Depends. Not speaking as a comcast employee, just somebody using an apple tv look at the apps i buy not available on tv thinking this could add ip quickup quickly. Take simple math a second. Espn is the most expensive channel on the dial. Its about 7 per month. Lets say hypothetical that 25 of people wanted to sign up for it. Well, then youll have to charge charge 15 a month for espn. More than that. Throwing a number out. Charge 28, right . The perfect math. Im just saying espn may say, okay, 15. Arguely more. Now you have to add in not only the cost not only the take rate but add in the cost of marketing the channel. So theres a whole new Consumer Marketing Campaign for the channels that says take espn this month. Theres Customer Service associated with the adds and drops that go with an individual channel. So it introduces a lot of extra costs into the system. All right. Craig, leave it there. Great discussion. Thanks for coming on the program. Appreciate it xbrshgs on deck more on this big Friday Market surge. The dow is well up triple digits digits, plus a mistress stock. Breaking out to new alltime highs. Theres your chart. Up 7. 5 in a week. Can you name it . If youre right, ping melissa at melissa lee cnbc. If wrong, ping me. Back after this. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. When the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. On a snowy day here in new york city, the nasdaq recaptures 5,000. The qs off by 1 . Look at big cap leadership in this one. Apple, Google Microsoft posting nift nice gains. Thanks. Inside the worlds biggest cave amazing footage. Wait until you hear how the video was taken. And oil surging on the day. Is this though all a dollarrelated move or do Oil Fundamentals still even matter . Power lunch, digging into that when we return. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Hello everyone. Im sue herera. Your krn in update. Walmart settled with the family of the passenger killed in that crash that injured actor tracy morgan. Court papers filed shows james mcnarp children received 10 million from walmart. The comedian was killed on the new jersey turnpike in june after the car he morgan and others were riding in was hit by a walmart truck. Po tait e ohs that wont bruise and apples that wont brown are closer to your table. Six kinds of gentlemanetically made fruit, safe. And a Historic Deal deadlocked over sensitive Atomic Research and legitimating of sanction lifting of sanctions. The framework for a deal is due at the end of the month. Drop in oil prices hitting cowboys hard. Not talking texas. Canada the top rodeo, the Calgary Stampede is feeling the pinch. Sponsorship down 20 . The 103yearold event is held every june in canadas oil capital, and i have been there. An amazing event. Hope they recover, brian. When i went up for the oil thing, coming back for stampede. I said no. They said this is when you come to canada. Well talk more. Got it. And another crazy day. Jake de angelis. No, dont want you at the nymex but in a Computer Trading currencies. How much did this oil having to do with entirely the move in the u. S. Dollar . Good afternoon, brian. You hit the nail on the head today. Today is one of those days where the factors are completely separate. Fundamentals are on one side of the table and this becomes more of a mark crowecro play. Oil up 1. 06, closing up and traders saying inventory numbers and whatnot we look at the fundamentals. Traders are caring less about that and using oil to hedge out other positions and using it in other ways to balance out their portfolios crude up to settle above. Whats important here, you reported, recount declines rigs coming offline didnt move things around much supportive at the same time not what traders are talking about. The dollar is the key factor. D for dollar. Thank you, jackie. Time for ow new daily segment trading nation. Today we continue with our focus on biotechs. David seeberg, trading with cowen and company and ari wald tech anything with oppenheimer. Dave first to you. Is all the good news already out . I pointed out the stats. 60some companies out of 150 have more than doubled off their 52week low. Almost none 16950the 150 i follow are down. Can biotech keep rallying like this . Is it 10 in the last no month alone predicated on the tailwind of fundamentals here. The strength over the past month or so is predicated on this biogen news we saw today. Solid data and the alzheimers program. A bull case people are waiting on. It can keep going. Until you show us a better sector, right, showing more promising growth, moneys going to continue to glow into flow into biotech. Their regard is the best on the street. Theyll continue to move these higher and i cant imagine that money doesnt continue to flow. Look at biogen period. I mean biogen as i think, 9. 5 waiting in the ibb. Right . Look the at the data on the alzheimers, the potential to be the biggest drug ever. Trading at i think 26 times earnings . Its a home run. You cant find that anywhere else. Moneys going to continue to stay in this sector. Youve been unequivocally positive with you and your analysts. Ari, take out the emotion and all the 25 times, blah blah blah. Are the charts overextended . What do the charts say . Very r very overextended. If you havent bought biotech by now, todays not the day to do it. Were very extended. One hand very extended most important averages. The longterm trend is there. I agree longer term is still a place to be. Investmentwise, dont sell all your shares today either. Buy it on the pullbacks. I have a feeling the ibb pulls back tots 50day moving average marking a Good Opportunity to buy the etf that comes in around 350 after your support level. Ari wald overextended, thank you both very much. For more trading nation head to our website. Two other original segments per day. I believe weve got breaking news now with steve liesman. Okay. I understand we might have breaking news. Im breaking news to myself that we might have breaking news. How it works, folks. Still to come, a major Hedge Fund Manager sending a big warning about the future of america and capitalism. Is he right . Well debate it. Also another look at todays mystery chart. Hint. 1 million isnt cool. 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Charlie evans, chicago fed president , a voter this year making some of the first comments about the fomcs recent policy statements since the statement came out on wednesday and the conference and the press conference by the fed chair. Evans saying hes comfortable with the removal of the word patience even though he is one of the more dovish members of the fomc. I would say it could easily be consistent with us not raising rates, because conditions evolve in a certain way. For quite some time. Or it could be consistent with raising rates in june if the circumstances warrant. Evans believes that inflation will remain low even as the Unemployment Rate comes down and made a strong case for the Federal Reserve to aim or allow inflation to run above the 2 target for some time to be symmetrical since weve been below it so long. What he said about when he thinks rates will go up. Im open to discussion being persuaded that maybe this is the right time to start that. At the moment i still they 2016 is more likely given the forecasting configuration i see. Thats evans vote. 2016. The most likely time. Lockhart, the atlanta fed president , Dennis Lockhart earlier today saying serious consideration was being made for rate hikes in june, july and september. Back to brian. Sounds good steve. There you go. Sure. Thank you, steve. Interesting stuff. Could be next year could be june. The fed playing a mystery game. Thank you very much. Meantime Billionaire Hedge Fund making surprising comments about capitalism and the future of america. Let us bring innin robert frank. What did he say gathering so much attention today . A lot of attention, brian. Hedge fundamental billionaire one of the richest americans worth 4. 6 billion saying the wealth cap is unsustainable and disastrous if unfixed. Jones says current levels of inequality cannot and will not persist. History suggests it will fall in one of three ways. Revolution higher taxes or war. None of my bucket list. The problem, he says a change in american companies. Too focused on Quarterly Earnings profits and share prices and not focused enough on their broader role in society. Heres what he said. He said we have ripped the humanity out of our companies and reduced them to a set of numbers. Now, since the top ten percent of americans own 90 of stocks he said only the rich benefit from corporate profits and stock prices. Jones emphasized she a proud capitalist and capitalism creates great innovations analysts people like him to enormous success, but hes forming a not for profit called just capital, to bring more justness to companies and also is the founder of robin hood the charity raised and granted more than 1. 4 billion to help the poor in new york and this speech comes a week after protesters gathered outside mansion in gregreenwich, connecticut, accusing him of destroying jobs privatizing and blocking the minimum wage and carried hedge clippers they say are the new pitchforks in the modern class wores, but s wars, but surprising statements about a guy about corporate profits and the stock market for years. Certainly surprising. Talk about him more now. Thank you very much. Folks what do you think about the comments . Does he have a point . According to equalar, in 2015 more than 10 million. That was up nearly 10 from the year before. Many ceos make a lot more than that. 50 million or 100 million and the gap between what ceos and the average worker at a Company Makes soared over the years. Lets bring in the American Enterprise institute, a democratic as well and bring in the gap between ceos and everybody elses unsustainable if not dangerous . To the extent if a lot of his analysis is based on the work of tomas pikadi im not as concerned. Revisionism looking at his research and not sure it completely holds up. We have a lot more highend inequality today than 30 years ago. Interestingly, people dont seem to be anymore in favor of redistribution, despite that highend equality. People care what a ceo makes as whether their standard of living is rising. Thats where the focus needs to be. I think this point about shorttermism in Corporate America, that point is deadon. We need companies focusing more on longterm investment than Quarterly Earnings. But i guess im just not really that worried that all of a sudden theres going to be a war or revolution budget i think we are probably destined for higher taxes. Listen the starttermism, statistics, were a money network, a stcock market network. Have corporations have changed, in ways its shocking. 90 of corporate profits going to stock buybacks or dividends. Not much reinvested in the business. Not a lot of factories to high nur workers. Ho doughofdo ofnew workers. How do we change that . Unless you have a vibrant, growing economy. Your particular company may be doing well but overall the country suffers. Sooner or later that comes back to you. To me i was looking at an urban Institute Report about economic wealth over the last 50 years between 63 and 2013 in particular. The top 10 went from no wealth to basically 2000 in debt. The tophrs1 their wealth increased by sixfold in the last few decades. Its not a sustainable model. Part of the problem for me is its both structural we have a serious economic problem in terms of the impact on the work working class, middle class and perception problem, by no means insignificant. Cant measure it beyond polls, if people dont believe the country offers a promise for them for their children, it is going to have an economic impact. Because most of the things that people make in terms of decisions for, you know to buy stuff, based on the promise of a future future. Also, chris why this go ahead. A lot of this a fear about sort of what will happen. Despite the fact weve had an ein r increase high and inequality over the past 30 to 40 years, weve seen no change in the rates of upward mobility. You think, boy oh boy, must be hard to climb the ladder. Its no harder to climb the ladder today than 40 years ago. Because of great inequality if you dont climb the ladder the penalty is bigger. Bring it back a little. As we pointed out chris many times the inequality gap is really at the top. Technically my wife and i are in the 1 but im not bill gates. Im not complaining but its a huge thing. Ask this point. Do you think because most ceo compensation is now in stock versus 30 years ago almost none of it a very small percentage was in stock, to you think the incentives that ceos have are screwed up and need to be changed . No question. Part of this is i think, failure in the board room to i understand why theyre doing it because they look at it in terms of fiduciary responsible to shareholderors but theres a greater responsibility its tough for people to hear this, especially on this network a responsibility to the country. They have to balance it. Its completely out of whack for decades and getting worse. The problem will where i think theres a backlash at some point politically or otherwise, the country will have enough. You cannot have the 1 or a fraction of that 1 becoming so wealthy and everyone else below that suffering or stagnant. I understand. The point i was trying to make income that personal anecdote always say 1 . Dont confuse a doctor an accountant, a family making a couple 00,000 ahun hundred thousand a year with bill gates. Those two people depending where you live are very different individuals. Okay . Very different individuals. Jimmy, to you. Youre focused on the 0. 1 . The reason theyve been doing so well is not because of ceo salaries. Its because of the explosion of billionaire entrepreneurs. Second point, chris is right. The executive pay system is out of whack. You want more longer term focus, maybe longer term investors should have greater shareholder rights. One of the reasons why the ceos are making so much money, not just executive pay, theyre better able to take add vng vng of a advantage to sell the company the products to. Also one thing to add. Keep in mind i assume all of us here make a pretty good income. There are people here the reality, folks at the top, say 20 , 30 , lowest economic strata, really truly struggling. When we talk about Companies Like walmart or target whatever it is increasing wages. Heres the brutal reality pip going from 7 or 8 whatever 9 is one thing. These are folks that are struggling immensely to make ends meet and dont see a path. That is not good for the country in the responsibility has to go beyond simply saying yeah were offer these workers a dollar. Its what kind of country do we want to create . Thats a responsibility that lies in the board room. I agree, chris, and the reason i point out how little of corporate profits are going back into rebuilding this country. Saying it for a years whether roads, bridges factories. If you dont have faith in the stock market the idea of capitalism, i need money to build a factory. Get it a bunch of people give it to me and ill build up the factory. Not to buybacks and dividends. Nots not the concept what the stock market was about to be about. I agree. I wish more discussions were happening all the time on this net woshgt and others. We do what we can in the five minutes allotted by producers. Well have you back on soon. Call todays mystery chart here. A new alltime high. Gave you hints. There you go. Were back, right after this. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Look at this amazing footage or imagine it in your car. Photographer used a drone to get unbelievable shots from inside the worlds biggest cave. It is in vietnam. It is 5 1 2 miles long. As you can see, its got a river. Its got its own jungle. The cave is so wide and deep it could hold an entire new york city block filled with 40story buildings. Put that in your cave and smoke it. Stunning footage. Time to reveal todays mystery chart. You guys on twitter pretty good. It is facebook. Shares have more than doubled since its 2012 ipo. Does facebook have more room to run . Lets bring in a bear fast money trader jon najarian along with our bull james, equity analyst. Dr. J, im going to start with you. Lets start off with this notion of valuation since we are sitting at an alltime high. What concerns but this valuation considering the growth rate this company has in front of it . I love facebook. I think Mark Zuckerberg has done a fabulous job and hes gotten plenty of credit for that. Thats how you get a 75 or 80 pe because of instagram, us what of whats app. Those are two that have could disrupted the apple cart for facebook and i think kudos to him for basically taking those in. Youve seen the valuation since hes taken them in. Theyre as many as 15 times higher in the case of instagram than where he bought them. So that was where he really has done a great job. Now, a lot of people are betting on payments and mobile ads and so forth. Facebook growing substantially in the mobile ad space, but as a lot of people have said the mobile app install ads, in other words for a lot of these companies that have been referred to as unicorns where its a billion dollar valuation just out of nowhere, theyre the ones buying these ads. That could dry up like that if things turn south at all. So thats a real concern if youre somebody who is on the bullish side of facebook and then you take the payments. Payments are something that i like payments and what theyre doing but the fact its only through a debit card melissa, you had jpmorgan and citi basically going after the s up going with apple. I want to get james thoughts on at least a few of those points. All right. For the valuation side is there too much built in for the whats app and the acquisitions hes made . I dont think so. I dont think were were looking for 40 growth. So you have a stock you can argue the valuation but at this point its trading at about half of linkedin valuations and 40 of twitters its just telling me its trading at less than its peers which may not be the right multiple. You cant look at specifically the nearterm opportunities with the apps but rather take a step back and what people i think are not fully appreciating which is what could it mean versus a company like google because i think that when you look at native ads, theyre very conducive to producing performance search dollars away from television. I think you canof revenue from where you are today. Lets talk about payments because thats really what has pushed facebook to this new high this week. Dr. J outlined his concern that it only uses debit cards. Does that matter . I dont think so. Right now i dont think its about making money as much as it is getting people engaged onto the platform in more ways than one. You know i think what theyre doing is taking what weve seen from a company like we chat in china where they have the payments capabilities the purchasing, the ability to call cabs. I think well have much more immersive experiences. Dr. J, one quick point of disclosure. Do you own facebook in any ways . No i do not own that or twitter at this point. I was in twitter recently. Are you short it . No not short it either. Just thought those were points to consider. Thanks guys. Doc, thanks. James, our thanks to you as well. Take another check on this friday rally as we are dealing with snow behind me. The s p is up 2111 and the nasdaq, we are at a new intraday high or we were and so well see if we can actually make the surge into a new closing high today. Look at some of the consumer related stocks. Nike vf corp, and garmin. Ill be the jerk but lets just remind our audience as i know you have many times that 5100 back in the year 2000 is 6900 right now on the nasdaq in inflation adjusted terms. Winter is coming. All right. Up next. We reveal our standout stocks of the week plus a little march madness for your money. Stick with us. Lets wrap it up with our stock of the weeks. Small cap chipmaker has been soaring up 11 this week. 24 over the month but its nearing its average analyst target of 83. 40 a share so be careful a bit. Thats a good one, brian. My pick im watching American Airlines. It is up nearly 13 this week. Of course, the big boost came when American Airlines was added to the s p 500 and also last week while it reported a decline in february of revenues it reaffirmed its guidance for cant get one past you, smarty pants. I said i use this word all the time. Its real for us. Its an acronym. Its real for us. Tonight on fast money, day four of the fast money madness challenge and our traders, of course, as part of the challenge debating 16 of the hottest tech stocks over the next three weeks. Log on cnbc. Com pro for a preview. Tonight is a good one because we were just talking about this stock hitting a new alltime high. Facebook remember susversus google. Which is my pick to win it all. You can tweet and we urge people to tweet because the twitter vote has been the tiebreaker for the past couple. So thats tonight. Juice it up. Melissa, thank you. Look forward to fast money. Thank you all for watching. Have a great weekend. Closing bell starts right now. Welcome to the the closing bell. Im Bill Griffeth here at the new york stock exchange. Capping off an incredible week. Yes. Across assets really. Im sara eisen in for kelly evans. This up and down market continues, and today up in a big way with the dow up more than 200 points. The index were watching the closest though right now would be the nasdaq making a play to close at a new alltime high. The magic number you want to watch going into the close today, 5,048. 62. That was the close on march 10th, 2000, more than 15 years ago. It would be a record