Than 10 from its ipo price. Well look into why the Popular Video game not so popular on wall street. They have 100 million users, so we were talking about this earlier. Its clear those 100 million users didnt buy the stock. Not such a fan. Investors questioning whether they can do another hit among other things. Also a brawl over bitcoin. Silicon valley icon Marc Andreessen takes on of all people investing icon Warren Buffett calling him an old white guy who doesnt get tech, and i think Warren Buffett would agree with him. But fets negative view of bitcoin is what got under Marc Andreessens collar. Well get more reaction from those harsh words. Also turns out american exceptionalism extends to drug prices, and that drugs seem to cost more here in america than virtually anywhere else in the world. But why is that . Well get you some answers, tell but whats being done about it. Lets get you caught up how the trading again, this trading pattern has been very familiar. A rally on the open, kind of meander for a while, and then a selloff, and traders kind of stand around shaking their heads saying why and whatever. The dow right now down 28 points at 16,339. The s p excuse me, the nasdaq once again the laggard down to 4,206, which is just about support right now according to art cashin. Thats a key level for the nasdaq to hang onto. And thats really been the one to watch here. Some of the bigger moves, especially with the biotech shares opening higher but now under pressure. Thats been a volatile bunch. S p has become the better performer now that year compared to the nasdaq. Its down about three points at this hour at 1,862. Lets talk about it with our closing bell exchange, abigail doolittle, jack bouroudjian, rob morgan, and our own rick santelli. Abigail, what about this herkyjerky intraday kind of market weve had lately . Thats been the pattern weve seen for the last few weeks. What do you make of that . You have really nailed it on the head there, bill. There are two things that stand out to me right now, and that is one of them. The intraday volatility. It reflects increasing uncertainty on the part of investors around the fundamentals and frankly it feels like the wheels are coming off a little bit. We have the high flyers falling, biotech, some of the technology names. We also have copper breaching longterm multiyear support. Lets not forget europe. The dax is down almost 10 from its recent highs. All of this volatility, i think its about to become unhinged. I think were about to see a pullback similar to the beginning of the year, 6 to 10 , and Something Else stands out, the tenyear yield. We have bonds rallying in the face of a fed committed to the tape earned also with the fed chairwoman giving a time line for when rates should rise. Clearly the bond market doesnt believe the fed. Smart investors think theres something out there for a reason that they should also be in safety. I think that thats going to come undone in the stock market and probably not so long from now. Well, rick santelli, cue you on the bond market. I saw you give an aplus grade to the auction today. I havent seen that in a long time. Sara, give that girl a kewpie prize because you nailed it. Everybody is talking about why stocks are acting squirrely today, so i offer the following charts as proof that we can actually see cause effect today. Straight up 1 00 eastern we had a tremendous fiveyear note auction. Why . Because it sold off so aggressively and stuck on wednesday. One week ago on the fed statement. So it was cheap enough. Everybody barrelled in. Now, as you look at the chart, straight up at 1 00 eastern, rates go down. The next market that started to move lower was the dollar index followed by the dollar yen, followed by the equity market. I dont really know what the mystery is and i wouldnt read too much into it as trying to price different aspects of the fed. Not all roads lead to the great benefactor of the markets. Sometimes its just the markets. Yeah. Right. Thats really kind of been the answer so far. But jack bouroudjian, its clear Stock Traders are watching the bond market and the bond market is watching the stock market. We used to watch the bond market until we started realizing the bond market was absolutely wrong. On a daytoday basis you see the intraday fluctuations. Rick, you a and i know are you with bulls and bulls or bulls and bears . Bulls and bulls when you see the market going up the way it has been over the course of the last five years. Its realistic. Up 30 last year. That makes perfect economic sense to me. Had nothing do with extraneous issues. The last three months have been perfect. Weve seen a market go sideways. We know thats as good as correction. Thats exactly whats happening. You factor in the fact that you got the end of the japanese fiscal year and you have a lot of Portfolio Managers playing matchup. Look where that s p closed in march. That march contract at 1893 tells me people are panicking to buy the market. They just dont know how and thats the problem. So oh, they know how, they close their eyes and roll the dice. Another thing that came out at 1 00 eastern, french jobless claims moved to the highest level ever. We have a chart of that as well. So you want to keep an eye on that euro versus the dollar. We should have known. French jobless claims took the market down today. I dont agree with that, rick. I was watching the euro dollar. Its been coming under pressure in the hope the ecb will go the other way of the fed and start easing. You have had increasingly dovish rhetoric out of europe. I agree. That should bring the euro down which is probably why theyre doing it because obviously theyre not thinking, well, i hope it works out not so good as it did in the United States or as terrific as its working in japan. Rob morgan, where are you putting money to work right now through all of this turbulence were going through right now . Well, you know, i think the market is being squirrely because really theres more of an information vacuum here. We dont have earning season starting for a couple weeks, and were a couple weeks past nonfarm payroll report. You know, i still like stocks here. Theyre cheap. As far as the technicals go, they look attractive. The individual investor still hasnt gotten back into the market yet. Earnings, even though theyre not robust, earnings estimates continue to expand at a slow rate. So i like stocks, and id be putting them in as far as a macro theme more of the small cap space, the international sta space and like financials, industrial, and technology. Joo what do you do if you are the Retail Investor . Monday is the last day of the quarter. Here a lot of people are booking profits as well. Is it too late to jump on board now that valuations are more normal, lets say, earnings dont start for another who tweaks and the macro backdrop is pretty uncertain. I think the Retail Investor is in a really difficult spot here because here weve had this fiveyear rally that many people have missed out on, myself included if i were guiding portfolios at this point, but because of all of the uncertainty in the fundamental backdrop, and now were at this point where i would say were ultimate fed froth, investors are on the one hand wanting to get in and on the other hand not trusting it. I would have to disagree with rob in terms of the technicals. I think its shaky and unstable. It reminds me of 2011 where we had this sideways trend where we have some good news that pops the market up a little bit and then down. That kind of sideways trend typically resolved to the downside. I believe Retail Investors need to be very careful here. It would be a real shame to see people jumping in at these highs only to have a repeat of not just 2011 but possibly, you know, 2008 or even 2000. That memory, that collective unconscious memory of what happens when the wheels truly do come undone, lets not forget europe. Speaking about the euro against the dollar, those technicals are very bearish. I think that crisis will remachir reemerge. Jack, did i hear you say this sideways action weve been through so far is about as bad as its going to get, youd still be adding to positions . Were not going to get a fullblown 10 correction . I dont think were going to get it, not yet. I think maybe later in the year. Right now what i said was time or price is the way that a market corrects. The movement weve seen over the course of the last three months is textbook. Its exactly what you want to see. Look, i would agree with abigail if we were trading 25 or 30 times forward earnings but were not. This market has just seen a reversion to the means is all weve really seen. The one thing i would like to point out, everybody talks about how this market is cheap and on a regular pe basis that may be true. If you look at Professor Robert shillers way of looking at the market, e talking about it trading 25 times similar as it did to 2000 and 1929. Dr. Schiller has had that same pe now for the last fi years. If you think about it. And its been incorrect. Lets face it, the fed the problem is that the entire way we look at the market has changed. The way rick and its changed because the fed is supporting it. Its artificially the bond market, equities are a different story. Equities are making i think the bond market is telling the truth. Where are Retail Investors going to put their money . How can it be telling the truth . Its been lying for the last five years. Investors are going to have to put money unfortunately into the dollar. I think we could see a massive flight to the liquidity. Hats off to the fed for pushing it up this high, this far. They have done a great job but rick, i saw you nodding and then shaking your head. I dont know which way youre going here. Who are you agreeing with . The issue i have with this conversation is we can never figure out who is right and who is wrong. Are stocks rich or cheap . Well know in the fullness of time. Fair value is impossible to calculate. Thank you alan greenspan, ben bernanke, and soon to be a thank you to janet yellen for that. All right. Joining us a little late because of technical problems, and we apologize is scott cavanaugh. President of first foundation. Bring you into the conversation. Weve had a lively one here, scott. Lets get your opinion. Weve had a volatile market here recently. We all know what the fed is thinking about. We realize that the economic fundamentals have been sort of back and forth recently. When all is said and done, do you like this market still . Would you put money to work here . I would be very cautious about putting a lot of money to work. I still favor the Large Cap Value space. You know, i look at the fixed income market, and im still favorable in sectors such as distressed fixed income, but i would be a little bit cautious in through here. I think with the recent ipos, some of the technology and biotech, i think it started creating a little bit of concern abigail could have used you about five minutes ago. My question on that, scott, is are you really looking at biotech and some of these other high flyer momentum stocks like netflix and twitter and tesla as indications of the Broader Market as leaders of the Broader Market indicative of whats going to happen with the rest of equities . Well, i certainly think its had an impact recently. If you listen to jim cramer in the morning just about every day jim talks about the fact that he has some concern with some of the ipos that have come out recently. So i think right now i think theres a lot of cautiousness. You look at it, you havent seen huge stock market rallies this year, and i would just remain a bit cautious. Okay. Before we go, can we get a five box i dont know there we go. Show of hands, how many play candy crush . Show of hands. Theres one, two. Yes. How many bought candy crush today . Yeah, thats what i thought. There you go. I downloaded it this morning. There were literally walking strawberries down here on the floor. There goes saras product tift. Orange crush. I dont understand the revenue. Thank you all for your thoughts today. Appreciate it. Thank you. See you later. Heading to the close, we have 45 minutes or thereabouts left in the trading day. Its been another one of those up and down kind of days. The dow down about 41 points right now. Losing some momentum. Palace intrigue at Rupert Murdochs media empire. Bringing his eldest son lachlan into a leadership role while promoting his other son james. Which son could emerge as the heir apparent. The battle begins. Plus, as we mentioned, king digital failing to crush it on its first day of trading on wall street but someone here says its way too soon to call it game over for the maker of candy crush. We have a heated debate coming up. Plus track record of old white men who dont understand new technology. The billionaire venture capitalist talking about Warren Buffett. We want to know what you think, if andreessen is right in claiming buffett is just an old white guy who doesnt get technology or bitcoin. Tweet us cnbcclosingbell. Well put your best tweets on the air a little bit later. Ttle. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. News corp. Rupert murdoch is appointing his eldest son lo Lachlan Murdoch. As a result many believe this makes lachlan the heir apparent to take over his fathers media empire. Mr. Murdoch himself just turned 83 two weeks ago. With us now for some more insights on the significance of this latest move, the former chairman of fox broadcasting, brian mulligan. He worked with Lachlan Murdoch years ago. Also with us is author david fulcrum. Thank you for joining us. Brian, lachlan has been thought to be the heir apparent before. Then he left the company. Now hes back in a power position again. Is this the time finally or what do you make of this latest move . I think it is the time to bring back lachlan into the fold. My experience with lachlan when he was at fox, we both sort of joined at the same time and he was sort of new to the u. S. Media market. He was a quick study. Hes the kind of leadership that now works well in hollywood. Its not the screamers and yellers. Its thoughtful, insightful, measured types like lachlan and the people working for them are usually like that. For those of white house havent been following it as closely as both of you, david, tell us a little bit about lachlan, james. James was the presumed favorite until the hacking scandal. In the summer 2011 the hacking and Corruption Scandal at murdochs british tabloids really exploded at least for the short around medium term what seemed to be a clear path james had towards seceding his father adopp this enormous media empire. He had this opportunity really because lachlan walked away voluntarily in 2005. Lachlan had been tired of the infighting, he felt he would been sandbagged by the president of news corp. And by fox news chairman roger als who remains at the company. This is i think an opportunity for lachlan to prove himself. I think in 2005 rupert concluded his elder son didnt have what it took, was a little soft and hadnt proved himself when swimming in the deep end but now this is the time for lachlan, james somewhat sidelined to prove himself once again. Its the great opportunity but not a guarantee that lachlan will be in that final post. Brian, they do have a deep bench at both divisions there, and then a lot of high powered executives. A lot of very strong personalities. Do you sense there would be an emptying of the bench, some disillusionment if some of those executives realize now maybe lachlan or james will be the new heir apparent . I dont think there would be at all. I know chase has a Good Relationship chase carey, right . Chase carey and rupert and the team under them are excellent managers, but theyre excellent at what they do, be it the news, be it the cable channels, be it prime time programming. Stacy schneider who is rumored to be going into the film area at fox, she knows what she knows, shed be perfect there, and she would respect lachlan. So i think lachlan would be a good manager of that allstar bench. Brian, you have been inside, so you know this better than anyone, but i think the reason were all a little bit intrigued with the family drama and the hierarchy beyond the fact this is a very powerful company is the fact that rupert has really managed to concentrate power for the Family Dynasty in a Public Company. How unusual is it and is that a correct assessment of what its like . Well, i can only speak to my dealings with rupert, lachlan, and james a lot less, but rupert is the youngest 83yearold i know. He still has a very sharp behind. His children have grown up in the spotlight. Theyre well educated. Lachlan went out and did his own things. James has done a terrific job with b skyb. Theyre both competent managers. The last name is murdoch but theyre both highly qualified individuals. David, you wrote the book murdochs world. Rupert murdoch is 83, yes, but we all know how vigorous he still is. Hes sort of a Sumner Redstone type who still wants to maintain control of his company. How much longer do you think that lasts . Well, he, of course, has thought himself to be immortal until his mothers passing relatively recently at the age of 102. He would point to her and say ive got a lot of time yet and i still think he thinks that, but he seems a little frailer these days and yet somewhat invigorated. He just divorced his third wife and i think hes bringing his son lachlan in the fold as he had hoped to do in 2011 and then again last year when he designed the new slimmed down news corp. So much around the psychology and even the geography of Lachlan Murdoch who retreated to his fathers native country of australia. Without taking anything away from what brian said, i think it matters a lot that the last name is murdoch. You know, this is a publicly traded company but like Sumner Redstone and viacom or cbs, they treat it as a family store. The family controls roughly 40 of the voting shares that matter in this kind of decision and murdochs primary aim both in building on his Business Success is to make sure his company was ultimately led by somebody who carried his last name, by one of his Adult Children and preferably by one of his two adult sons. The idea lachlan outstrips h his that idea is not to be taken too seriously. All right. Gentlemen, we must go. We have breaking news but thank you both for your insights on this story over at murdoch land. Thank you for being with us today. Lets go to dom chu. You have some breaking news out of northwestern university. Whats going on . Thats right. Something sara might know a little bit about. I know she went there at one point in her life. What i have is a regional report from a regional director of the National Labor Relations Board with regard to a case before it where the northwestern players that played College Athletics want to unionize. We have a decision from this regional director of the National Labor Relations Board. Again, a smaller body of the national body. In this they claim that the employer or the college, northwestern in this case, is deemed an employer with College Athletes as its employees because they give out grant or scholarships which could be considered compensation. Now, the decision goes into detail, but the regional director here has said that he finds, he or she finds that players receiving scholarships from the employer are considered, quote, unquote, employees under section 23 of this act. It is hereby ordered that an election be conducted under the right of the regional director for the appropriate bargaining unit. In other words, this regional director has said that northwestern players can unionize in essence. So, again, a regional director, this is expected to be appealed up to the National Labor Relations Board and ultimately even perhaps beyond that. But still, sara, bill, a very Interesting Development in the world of college athleticathlet. Its clear as the dollars get bigger in College Athletics, the players are not they are mindful of that and they want a piece of that. A case out of ucla a few years ago where they were after some compensation for their images being used on games and things. Right. The use of their likeness. And, you know, dom, you know i know northwestern from graduate, but you know me well enough to know i dont know anything about sports. But you know College Athletes want to get paid and thats what the whole case is about. Thank you very much, dominic chu. Here we are minutes before the bell. The dow, s p, and nasdaq all in the red. As you can see, the dow down about 47 points at this hour. Unemployment below 6 by the end of this year. Thats what st. Louis fed president James Bullard expects. Were going to talk about that and what it could mean for Interest Rates, the markets, and your money. Something you cannot afford to miss coming up. And just two weeks after being given the green light to bid for new federal oil drilling contracts, bp has an oil spill. The alarming details just ahead. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses sometimes they just drop in. Always obvious. 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. So here is a question, could the Unemployment Rate fall below 6 by the end of this year . St. Louis Federal Reserve president James Bullard certainly thinks so. He says the economic recovery is exceeding expectations. However, could that end up pushing rates, Interest Rates, higher sooner than anticipated if the feds hitting their marks sooner than they thought they would . Lets talk about it with Liz Ann Saunders and we got Larry Mcdonalds joining us as well. Liz ann, you know, we all are trying to parse through Janet Yellens comments of last week and what it means for the future of Interest Rates and how soon they start raising rates. Where do you guys at schwab stand on that issue right now and what does that do to your thoughts about investing in the stock market . So, i would put myself somewhat in bullards camp. I have been pretty optimistic we would continue to see a decline in the Unemployment Rate, and that has to do with at least my view and i dont know that its shared widely, but my view that the decline is more secular than it is cyclical and has most to do with demographics and retirement. Theres no reason why that trend shouldnt continue so you would expect to see the trajectory go down. Now, i think part of the reason why the fed went to qualitative guide sense they didnt want to be hamstrung by a 6. 5 Unemployment Rate. Unless inflation really heats up, i think theyre going to be comfortable watching that go down compared to what the longer term measures of unemployment are, and i dont think the rick of an imminent change in fed policy a you will that high. I think thats a great point. Would you agree the headline number, the 6 unemployment, maybe we dont need to put as much stock in it because the Federal Reserve certainly isnt . I think the real story is the qualitative guide sense dangerous because i think it can lead to the fed losing control of the yield curve. If you look at what happened the other day during the fed statement rates spiked up to 2. 79 , and then over the last week weve had governor after governor try to put out the fire with fed speak, putting out the fire. Theyve knocked yields down to 2. 69 . So qualitative guidance has a risk, and the risk is they lose control of the yield curve. There is those who would say the fed hasnt had control of the bond market in a long time, larry. Youre right, bill. In the summer they lost control and through august and september governors attacked, and they took back control of the market and the yield curve itself, and i think it says a lot think about bullard. Bullard was on the tape over the last day, theres a hawk, and hes basically trying to dispel what yellen said about the six months. So i think the fed is very, very concerned theyve lost control of the yield curve in the short run and theyre trying to get ahold of it again. So liz ann, if im an investor, what do you do . How long is this window that we have here before those rock bottom zero Interest Rates start to move higher . At least we start to see it in the bond market really take off. Again, we dont know whether the sixmonth time frame is going to be accurate such that we might be looking at short rates going up in april of next year. That said, remember, the closer we get to the point that the fed is ready to raise shortterm Interest Rates, i think they will be more comfortable with longterm Interest Rates starting to creep up. What weve been telling investors is not yet to fear the hit to stocks that eventually will come from a rising rate environment, but does not tend to come anywhere near where we are in the cycle. Were not only still in the sweet spot in terms of long rates in the moves, 100 of the episodes of rising tenyear yields in this bull market, stocks have gone up, too, and i think were still in that environment. Even in the initial stages, the stock market tends to do well. Its a little later in the cycle where that tightness really starts to hurt stocks. I just think we have still a decent distance between now and then. Quickly, liz ann, do you begin to invest as though youre expecting rates to go up sooner rather than later. A lot of people are starting to plow into financials in that anticipation. Is that a place youd go right now . Certainly theres some interest in our stock as well as a result of that, and i think there are those Interest Rate sensitive stocks that are starting to move. It may be a little bit premature, but i also think it may be worth starting to consider whether were going to get a little bit of an inflation scare. Thats the point i made initially. That if the employment market really heats up and it translates into actual Inflation Expectations going up or a fear of that inflation, then i think that puts the fed in a trickier position. Id watch that other mandate. Good to see you both. Thank you for your thoughts today. Thanks. Appreciate it very much. Heading toward the close. 33 minutes left in the trading session. The dow hovering, right . Hovering but lower. Down 55 points right now. All the major averages are below the unchanged level right now. And a turnaround from this morning. Nothing sweet about the king. King digitals ipo today, king, it got hammered on its first trading day down 15 . It looks like the first firstday trade for an ipo today. Well talk about the prospects of turning the game around on wall street next. Plus, countdown lets do it together, shall we . I love this show. Its great. Its a team effort. The nations top banks have been waiting for the fed to approve their dividends, their stock buybacks. That big announcement is happening within the hour. Sara is going to have that for you. Yes. Guarantee it so keep it right here for the latest developments on the closing bell. The closi welcome back. Stocks lower today. We opened higher. A similar trading pattern that weve seen recently. A rally on the open that fades away as the day progresses, and once again, sara, no clear reason why. Today weve heard everything from the fiveyear note auction to the yen dollar carry trade. Thank you for mentioning that. Even french jobless claims have been noted as a reason. They were at the highest in history when they came out today. The stocks are lower because there are more sellers than buyers right now i guess. Nice way to put it. The big story today was, of course, that candy crush king ipo, if you had a crush on it, may not be paying off. Dom chu here with todays action. There is just never enough puns for this one. No, candy crushed. You can go through all of them. 1 swing from peak to trough in the Broader Markets. Thats an important point. Before we get to that ipo, lets start with dish and directv. Both stocks are surging midday on a bloomberg approach that directv was approached to discuss a merger or a possible merger of the two satellite tv companies. So those shares seeing some crazy action today in midday trading. A tough day for facebook as well. Its having its worst day in more than four months. Its falling after it said it would acquire oc kroccu lus. Plug power had surged yesterday when a they said a major deal would be announced. That deal had already been announced just two weeks ago. Were going to end like we said with king digital experiencing a disappointing debut on wall street. The stock is down more than well call it 12 , 13 after 22. 2 million shares were priced at 22. 50. King is the maker of that popular candy crush saga video game and perhaps it could be at least on pace for one of the worst ipo debuts in 2014. Sara, bill, back over to you guy approximates. Certainly unusual given what weve seen in this frenzy of ipos. King digital now down more than 15 . This is its first trading day. Making it the worst Performance First day for an ipo of the year. Lets bring in cnbc contributor ron insana and Brian Hamilton for more analysis on whats really going on with this new stock. I understand, ron, you dont like this stock because you cant get past level 300 on candy crush, is that right . I have no lollipops. I wrote on cnbc. Com this korng morning that i hate fad stocks. And like gordon gekko, you dont get emotional about stocks, you dont even get a crush. It looks like zynga, it looks like four kids entertainment. You remember that was the licensor of pokemon cards. Everybody said no one would ever stop playing with pokemon cards. The cards are there but the same kids that played with them are now 20 years later playing candy crush saga and will move on to Something Else. I dont think they have the magic bullet on game content. They get 78 of revenues from the saga, 22 from other sources. I dont like this type of stock. Brian, you dont agree. Its easy to make the bears case but one of the positive things is the financials are solid and the company is profitable. Yeah, ron. They have the big sin, theyre actually making money. Sales are up, theyre profitable. Remember, ron, they have 150 games. Its true a lot of revenue is loaded into three or four, but they have a half a billion dollars in profits and they can take that money and invest it. Hallelujah, we have a tech Company Actually making money. Lets do a celebration. Lets do another celebration. We have hasbro valued at 7 billion. We have mattel valued at 14 billion. Mattel is actually up today on a down day, and theyve been around like hasbro for 40 or 50 years, even longer than that, and they make a lot of interesting things. Barbie has survived for longer than i have, quite frankly, and so i think these audiences in the Digital Gaming space are extraordinarily fickle. I think when you get into theme or fad type stocks, and i wrote this morning, you remember Rainforest Cafe . Sure. Neither do i. Its gone, right . These things are dangerous. Did they just overprice the ipo . No, no, no. Im not a barbie fan, by the way, but absolutely what . Not. Three times sales, 11 times profit. Compare that to twitter. Now i agree with ron, these games tend to be cyclical, no question about it, but the valuation is priced right, especially in a bull market. So i really dont get it. Maybe we have some yet in the uk, i dont know, but if you look at the fundamentals, they have 150 games. If youre going to venture and swimming in the ipo market, this would be one to at least look at. But its been an interesting argument that they develop their own games, theyre not like zynga, theyre not acquiring games. Someone drew a parallel to lionsgate films. There are points content makers dont fire on all points. Weve seen this cycle with even our own Entertainment Companies that are related to us at nbc. Sometimes it works, sometimes it doesnt. Theres no magic bullet here that they have a monopoly literally on content in the gaming sector. I think thats but, ron, the valuation has been priced to reflect that. So i really am not a buyer on that really. I think that this is a solid company. Theyve got a lot of games. Its true the life cycle is a little short, but in this crazy bull market of ipos, if youre going to get in, you know, why not this one. That was actually my question. If youre a box final word here very quickly to you, ron. If youre a box or grub hub, do you need to be worried right now . These are other hyped ipos in the pipe . I think anything speculative right now is being taken out and shot. I think thats the issue right now is that were losing speculative momentum which as ill write next week could be portending a correction in stocks. He already know what is hes writing next week. Its already written actually. See you later. Heading toward the close, 17 minutes left in the trading session. The dow is still down 57 points. Kind of Holding Steady as we go to the close. Bp is one people are watching. Working to contain a crude oil spill in Lake Michigan. Actually not too far from chicago city limits. Well have the latest developments for you next. Then after the bell, former council of economic adviser to president bush matt slaughter says that our immigration policy is wiping out one job every 43 seconds in this country. He will make his case coming up, very compelling. Stick around. Stick around. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. My mom works at ge. Phone your account is already paid in full. Oh, well in that case, back to vacation mode. Boots and pants and boots and pants and boots and pants and boots and pants and boots and pants. Voiceenabled bill pay. Just a tap away on the geico app. Huh, 15 minutes could save you 15 or more on car insurance. Yup, Everybody Knows that. Well, did you know that some owls arent that wise. Dont forget about im having brunch with meagan tomorrow. Who . Seriously, you met her like three times. Who . Geico. As we all know, bp is till recovering from the 2010 Deepwater Horizon Oil spill in the gulf of mexico widely considered the worst environment disaster in u. S. History. Now they have to cope with yet another spill, this time in the northern part of the country near chicago. Jackie deangelis joins us with details on bps latest woes. What can you tell us, jackie . Youre exactly right. This is an interesting story to follow today. Of course, the latest on the spill is that crews from bp and environmental agencies are trying as quickly and efficiently as possible to clean up this oil spill. The good news is that the cold weather is actually turning the oil into a waxylike substance. That makes it easier to clean and remove from the water. This happened at the whiting refinery on Lake Michigan in the Late Afternoon yesterday. Still unclear how much oil were talking about here and how long the flow continued before it was actually contained. What we do know is that the crude being processed at that refinery is heavy canadian oil from alberta, canada. This is a relatively new facility for bp for refining that specific type of crude. Part of a 4 billion overhaul that they have been working on. This comes days after a barge accident spilled crude closing the houston chip channel. Traders eyeing that very closely and its also on the back of the 25th anniversary of the exxon valdez spill and just ahead of the fouryear anniversary of the bp deepwater horizon disaster. That will be later next month. Now, crude prices remain supported today on this news. Of course, we had a bearish inventory report this morning. Traders looking the other way watching this, watching developments in the Houston Ship Channel as well as these prices stayed elevated. We did close higher by 1. 07. Crude closing at 100. 26 a barrel. But watching these developments very closely, guys. Back over to you. Jackie d. , thank you very much. All the hoopla, you were here this morning for the opening, the hoopla about candy crush maker king digital and their ipo, the fruit Walking Around on the floor. How would you like to be the other ipo at the New York Stock Exchange . I know, ill tell you, nord anglia opened for trading and it popped 13 . In case you were worried about the health of the ipo market. Its a british education market. 15 lower for king and that was really the one there were posters plastered all over the New York Stock Exchange. A mixed day for the ipos market. And here we are a little over ten minutes left to go before the closing bell. We have the dow still in negative territory. Actually taking a little bit of a leg lower, down 71 points. A lot of folks watching the bond market, fiveyear yield breaking into a new low. Exactly. Warren buffett has often been called the smartest guy in the room. Now Marc Andreessen is calling him, quote, an old white man who doesnt get tech, and i think buffett would agree with him. This is after Warren Buffett said that bitcoin, which andreessen supports, is a mirage. Who do you agree with in this war of words . Tweet us your thoughts on that. Use the best ones coming up later. You know the handle. Its cnbcclosingbell. Stay tuned. [ bagpipes play ] make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Your allaccess pass to full seasons of tvs hottest shows for free with xfinity on demand. Its the perfect week to work from home. So replace your doorbell with a hornets nest. Theres no time for disturbances. Or take a 7day lunch hour. Romance action other shouty words. Theres watching. Then theres watchathoning. Boom. Starts march 31st. About seven minutes left. The selling a accelerating. The dow is down 85 points. The nasdaq is down 1. 3 a decline of 55, below what art cashin has called support for the nasdaq. That may be one of the reasons were seeing selling. Joining me is tony rodriguez. Some of the selling in stocks is laid at the feet of the fiveyear note auction today. What do you make of demand right now for the treasury auctions in light of the feds statements about what theyre thinking about Interest Rates down the road . I think what youre seeing in todays market is really theres still quite a bit of uncertainty around the situation in russia and the ukraine and what are they really doing with the buildup of the forces. You still get a little bit of flight to quality thats going to benefit treasuries here i think for a little while until some of the uncertainty starts to leave the market. So the bond market is voting against the fed, voting for geopolitical concerns right now. In other words, theyre sort of ignoring the idea that the fed is going to have to raise rates sooner rather than later. We dont think it will be until next year so we dont think you will see a rapid rise in rates like you did last summer but there will be higher rates. The flight to quality is definitely a little tug of war with the fed. Where do you find value in fixed income right now . We think the best opportunities right now still remain really in the credit markets. So the high yield corporate market, preferred bonds. Thats where we think its not as attractive as it was a year ago and two years ago, but still an ability there to earn some decent income, strong credit fundamentals in the economy for corporate america. So we think theres a good place to get some income and still be somewhat protected from a rise in Interest Rates because of the lower correlation to rates. Tony, good to see you. Thanks. Thanks for joining us today. Well come back with the closing countdown for wednesday. Then after the bell, america is losing one job every 43 seconds. So says matthew slaughter, former member of the council. Economic advisers. He says its all because of what he calls our horrible visa and immigration laws. Hell explain how he arrived at this one job every 43 seconds lost as a result of immigration. Thats coming up on the closing bell. Stay tuned. Stay tuned. Ive always had to keep my eye on her. But i didnt always watch out for myself. With so much noise about health care, i tuned it all out. With unitedhealthcare, i get information that matters. My individual health profile, not random statistics. They even reward me for addressing my health risks. So im doing fine. But shes still gonna give me a heart attack. Innovations that work for you. Thats health in numbers. Unitedhealthcare. Sunny or bubbly . Cozy or cool . Meow or woof . Wheels or wheeeels . Everything exactly the way you want it. Until boom, its bedtime. Your mattress isnt bliss its a battleground of thwarted desire. Enter the allnew sleep number classic series. Designed to let couples sleep together in individualized comfort. Starting at just 699. 99 for a queen mattress. Hes the softy his sleep number setting is 35. Youre the rock your setting is 60. That works. Hes the night owl. His sides up while youre in dreamland. Youre the early bird. Up and at em. No problem, because youre in it together. Keeping the love alive. And by the way snoring . Sleep numbers even got an adjustment for that. Crazy . Only if sleeping peacefully with your soulmate is crazy. Find your sleep number setting only at one of our 425 stores nationwide. You can afford a sleep number bed, you cant afford another mediocre nights sleep. Know better sleep with sleep number. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Inside the twominute mark. Art cashin made a point, watch the trading pattern again today, and it happened again. We had a rally on the open this morning, as weve had lately, and it just faded, especially around 1 00 eastern time today when the fiveyear note auction results came out. Then the selloff intensified, and it looks like we will go out near the lows of the session here. Another reason would be the dollar yen carry trade which sara eisen will spend a whole hour on, wont you, sara. The fiveyear note, a Strong Demand at a higher yield. Anybody who bought into that fiveyear note auction is turning a profit. Were at 1. 7 on that fiveyear note. Then theres king digital, the high profile ipo that got crushed. Down 15 now as were going out on the day at 19 when it priced at 22. 50. Im guessing you didnt by king digital. Not a big fan but certainly powerful earnings as they came to bear on the market. Are you worried about the ipo market and its impact on the markets if we start to have some weak offerings like this . Thats interesting, no. I think it goes back to the pricing. Weve seen auction that is were underpriced and took off as well. Really gets back to the underwriter and the job he does, the research, and how keen they are on pricing these issues as weve seen in the past from linkedin to the rest of them. Got it. Thanks, terry. Good to see you. Thank you very much for joining us. Were almost going to be down 100 points on the close here as we go out. The nasdaq has fallen below key support at 4164. Stick around. Hour two of the closing bell right now with sara eisen and company. Ill see you tomorrow. Welcome to the closing bell. Im sara icen. Kelly evans will be back with you tomorrow. Much more on this market selloff into the close. First we have some breaking news right now on the banks. Kayla tausche has the details back fromh q. Sara, 25 banks will be able to return more capital to shareholders this year with no objections from the Federal Reserve. The fed did, however, object to five banks plans for Capital Distribution. Zions didnt meet the minimum threshold so it faces a unique challenge and cannot return capital. For citigroup, hsbc, citizens and santander, the fed had quality issues for the way they were planning. The issues were different for each bank. Fed officials acknowledging significant issues at the u. S. Subsidiaries of those foreign banks but acknowledging it was the first time going through the process. Citibank will be the surprise to the market. The shares are down nearly 3 falling off a cliff after hours. The fed said citi is a different animal. It had issues raised previously by regulators it didnt fix and important to note, citi can still issue dividends and buy back stock, it just cant increase those amounts just yet. All five banks with those objections we should note have 90 days to resubmit the plans. For the other 25 banks we dont know whether they will increase their distribution or by how much. We just know the fed would allow them to do that if they wanted to. They will disclose that throughout the afternoon. An interesting tea leaf to read, investors could be disappointed by what they see from bank of america and Goldman Sachs. Those two banks had to resubmit their plans to the Federal Reserve and they actually had anticipated that they would be able to give back more capital to shareholders than the fed actually allowed them to. They did not pass those thresholds with the original plans. When they resubmitted with lower dividends and buybacks than they had expected to be increasing to, and this is a complicated terminology, but you will see when they disclose in a few minutes, the fed actually said, okay, now youre within the limits. It will be interesting to see what they say but as for now citigroup is going to be the big one to watch. A lot of investors will be calling up the executives and asking what happened. This is the second time in the last three years citi has had issues. Shares taking a dive in the after hours on those results. Well continue to check back in with you. I know youre going to get more information on the banks throughout this hour. Were also going to be speaking with noted banking analyst in credit suisse. Lets talk about the news we just got on the markets. Really finishing the day lower. Lets bring in todays panel. Carol roth, herb greenberg, Sheila Dharmarajan, and nathan bachrach. Also fum fast money trader ti seymour. It was an unusual day. We opened up higher, talking about record territory, lost the momentum and really into the closing bell took a dive. The dow finishing almost 100 points lower. Why . I think if you look at where people were concerned, certainly as it related to the broader macro, the political and russian risks. I think thats a case where weve talked about this. The market might not be prepared for risk. People have said to this point i dont care about you, political risk. I care about macro and i care about Economic Data misses. The data was pretty strong in the states and that was part of getting to the level. I think were at technical levels. 1875 is a place we keep running out of gas. If you look at some of the other markets around the world, theyre trading a little stronger. Even emerging is trading stronger. I think this is a case where people are looking at technical levels. Sheila, the nasdaq is the big mover. It closed lower 1. 4 . Outsized move on the techheavy nasdaq. We hit the first time the s p 500 is outperforming the nasdaq. Thats something we dont talk about a lot. Here is the thing, everyone seems to be taking a pause. We always knew going into 2014 we werent necessarily expecting these huge blockbuster jumps. A lot of traders are pointing out, if you look at the trajectory of 2013, everyone likes to talk about the market move as a straight up 30 move. It wasnt. We had periods of two to three months where the markets moved sideways. So the fact were doing that right now may not be such a big deal. It doesnt mean that were necessarily going to close lower or higher towards the end of the year. Its just the market taking a pause. Tim was talking about some of the geopolitical fears. You cant cancel what janet yellen spooked in the market last week. Traders are just taking hold of where were at right now. Nathan, should retail traders be turned off by the increased volatility . I think whats turning everybody off is theyre looking at what happened in the bond market. When the tenyear treasury goes down to 2. 70 , the bond market is saying i dont see a lot of activity going on out here. Im not worried about inflation or any of that at all. I think that kind of set the tone for some profit taking, and i think we saw a lot of profit taking. I think Mark Zuckerberg had a little profit taking. I think his adviser said, hey, you got a couple extra billion dollars, stock market guys sometimes give you a little extra money, invest it because you never know after youve been up 25 , it could disappear. I think when you look at durable goods, those things that are supposed to last three years except when theyre in my kitchen, of course, if you take out air because i think im buying an airplane lately, all of a sudden you find its kind of flat. That says how are you going to get inflation to worry about if you cant get consumer goods moving . Well, Mark Zuckerberg took the risk. He spent another 2 billion. I guess that didnt ignite the animal spirits. And it didnt do so well for him. He bought these Virtual Reality goggles and i think he might have been doing a little beer goggling on that. But from my perspective, i think the story of the day was the king digital ipo. Im a former investment banker. I have somebody who helped book run these ipos and follow on offerings. To see in a market where were on a record pace here, i think weve had over 50 ipos so far this year. 60, i think. To see it trade down in this way on a company thats sort of a onehit wonder in my opinion, this is sort of like taking the snuggie public. It may be a business that makes lots of money but its the onehit wonder and it doesnt have the qualities of being an initial public offering. Thats the question i have for the investment banks. Why are they taking a company like this public . Not just trade lower but trade below its ipo price. You just dont see that, and i think thats where youre str t starting to see the cracks. Thats where the public sits there and says theyre taking advantage of us. We have all the other things we talked about, the geopolitical and all the other stuff, dont lose sight of the ipos i dont think they you can also they or we are not taking advantage of anybody. This sector is called boredom. I think we invented a new sector. Its a subsector of technology, its called, what will i do . Ill put on my mask or maybe play my game until my father figures out in App Purchases are verboten in our house. This is also potentially a sign of a really healthy market. Investors arent just taking these ipos for their face value. Healthy . Theyre looking at it, trading it down if it doesnt make sense to them. A lot of people could say this is a sign of a reasonably valued market. People are looking at these things carefully. Its not like the gogo 90 days. We have to go back to kayla for a moment because she has more breaking news on the banks. Trickle of these Capital Distribution announcements are starting with Morgan Stanley. The company has been conservative in the last couple years because it wanted to buy back the rest of smith barney. Its doubling its dividend to 10 Cents Per Share on a quarterly basis. It says it plans to buy back 1 billion in stock this year. So you can see Morgan Stanley shares up by 1. 5 from investors who have been very patient with this company to finish a big strategic acquisition. Now they will start to give some of that capital back. Back to you. It will pay off for those investors. Kayla tausche, thanks very much for that. Well continue to check in with you here as we get more news out of the banks. Want to get back to this ipo discussion because you guys are all fired up about it. Why go public now, herb, was the question you raised. This is a company that is cash flow positive. It doesnt necessarily need the debt right now. Whats going perfect time. Its because you can get the window is open. Because they can. Thats the key thing. When that happens, i would argue some bankers and carol and i were talking offline, these were not punk bankers. It was morgan jpmorgan. And so you have a situation where they let down their guard. They want to do these deals. You wonder what are they thinking . I will tell you one interesting thing. Earlier today on cnbc i think it was on squawk box Kathleen Smith was on. She knows this as well as anyone. It was interesting to hear her say not quite the end yet. But the bank did a great job. If you look at where the ipo came and where it traded how did bankers should be commended. They theyre trying theyre trying to get the highest valuation they possibly can. Thats what their job is. Okay. All right. They did what they are supposed to do. Tim, maybe well go to you on this one, what does this 15 slide, the worst oneday ipo performance of the year mean for the rest of the ipo market and the companies that are coming due . I think you will see a lot more of it. Youre in an environment where theres a lot of cash on the sidelines. The facebook acquisition also tells you what i think you should know is a lot of these companies are using their stock and their essentially as currency and why wouldnt they be especially if theyre trading at valuations some people may have trouble questioning. I dont think the ipo market this should be an indictment. I do think that candy crush is a onetrick pony, and this is a company that should have been sold off. A lot of people do. I think go ahead, nathan. I think the best thing that came out of the facebook deal is oculus was microfunding and while there are some big hitters involved, there were a lot of little players. For the first time we can look at a transaction and say, you know something . Main street may have gotten in on this. They got nothing. It was a kickstarter project. Were going to continue to talk about this. We have a whole segment on facebook and its newest 2 billion acquisition of oculus. Im glad you are all worked up. Were just getting started. Thanks to everyone on the panel and tim, thanks for weighing in. You can catch tim seymour coming up later on fast money on cnbc at 5 00 p. M. But, yes, we just mentioned facebook. The stock today actually got punished after news its buying Virtual Reality head set maker oculus for 2 billion. The stock had its worst day since back in november. Well hear from somebody who says this deal makes absolutely no sense at all unless ceo Mark Zuckerberg is actually suffering from a midlife crisis. Hes not even 30 years old. Also a wall street journal oped creating a lot of buzz today. It says our immigration policy may be costing america one job every 43 seconds. Well talk to the author of that oped here exclusively on the closing bell. And the historical track record of old white men who dont understand technology crapping on new technology i think is at 100 . Bitcoin backer Marc Andreessen blasting Warren Buffetts view of the digital currency. We want to know who you think is right. Your best tweets later on the closing bell. Youre watching cnbc, first in business worldwide. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Some Brokerage Firms are but way too many arent. Why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. Breaking news on the banks. This time on former bank of america ceo ken lewis. Kayla tausche back at hg, what going on . This one is a settlement between new York Attorney general Eric Snyderman with bank of america and former ceo ken lewis. Under this settle am, its 25 million, bank of america will pay 15 million of that. Lewis who stepped down in december 2009 will pay 10 million of that. This is basically alleging that lewis and other bank of america execs knew about losses at Merrill Lynch and concealed them to shareholders, misrepresenting how accretive the Merrill Lynch mercer would be to bank of america in 2008 during the very tenuous days. We remember them well, when this merger was inked nearly overnight. A 25 million deal. This case was opened under now new york governor andrew cuomo, finished under snyderman, but the most interesting thing is not the price tag. It is the fact that under this settlement, ken lewis is barred from curving on a Public Company board for the next three years. Going forward at least for the next three years, sara, no public directorships will be allowed to be held by ken lewis. That is interesting. Kayla, thanks for breaking it. Well continue to chaek in with you as we continue to get information on the stress tests. Stocks lower today after spending most of the day higher. They took a sharp turn at the close. Dominic chu has some of the big movers today. Lets start off with paychecks moving higher after posting better than expected Third Quarter profits. In the regular session however it was lab corp and Quest Diagnostics both higher on the day after a bill was proposed in the house of representatives that would prevent centers from cutting the fees it pays for lab tsas until 2017. Ubs is beginning coverage of the tesla with a neutral rating saying most of the upside has already been priced in. Intercept, biogen, alexion all moving to the downside. Well end with facebook having its worst day in more than four months after acquiring privately held oculus which makes Virtual Reality glasses for about 2 billion in cash and stock. A big deal for facebook but investors not liking those prospects at least for now. Facebook shares down 7 at the close. Dominic chu, thanks for running us through that. Well pick up right there. Investors not loving the move by Mark Zuckerberg and neither is our next guest. Joining me now, Dennis Berman from the wall street journal. Dennis, Mark Zuckerberg, midlife crisis you say. I guess the question from here, is he a brilliant visionary or a massive destroyer of shareholder value . Im being facetious about the midlife crisis. Beit raises an interesting question, how does a company keep ahead of the future . Does it try to get ahold of every technology that may threaten it. It seems to be the path of facebook so far with the whatsapp acquisition, instagram, and now the oculus purchase. So from my perspective, you really are seeing a company thats almost to use the midlife crisis analogy is almost just paranoid about the bad blemishes that might appear on its face and it has to adjust and try to anticipate where the technology is heading. It might turn out to be a great deal. We just dont know, but right now the market is saying to us it doesnt like it so far. Its certainly a risk. It is his first time actually getting into the hardware space, dennis. Hang on because i want to bring the panel in on this. Obviously a huge story of the day. Sheila, you had a thought about whether Mark Zuckerberg is really getting into the future of technology. He thinks this is the new mobile perhaps. Look, here is what i think is the difference about the oculus deal. You can make a lot of arguments about why whatsapp and instagram made sense. This was a bet. He described it as a bet in his release. Everyone says this is a bet on Virtual Reality. Remember 3d, everyone thought this would be the future. I still have the 3d glasses collecting dust next to my tv. This is far more speculative than all of his other deals and the market is expressing that concern. Virtual reality has been around for i dont ever. When i was in college, that what i wrote my entrepreneurial plan was an eating simulator for people who are virtual dieting. We all went to epcot and saw the future. In terms of the concentric circles where you had instagram and whatsapp, its what is this company and what does it stand for and how does it fit into the overall strategy . It sends a signal to the market that Mark Zuckerberg, one, is panicking. He doesnt believe in his core business, and also that using all stock for this, that he feels like his stock is perhaps overvalued and just using it here and there and everywhere. So i think in terms of signals its very concerning. I do have to say one thing. As an old white guy, i have learned one thing, and its that i never can pretend to know what will happen with technology down the road and what will be used and what will be important. And so you have to sit here and realize that, you know, we can laugh about it and we can say, you know, Virtual Reality has been around forever, but he may find a way to put this together and pull it together, and i say that knowing that weve learned that from all the things some of us used to sit and scoff at and realize that it really amounted to something. But, herb, herb, what he said today was i dont plan to make any money with this thing. This may be the first honest comment out of zuckerberg in a while. Hes taking a page out of jeff bezos of amazon. Com, looking well into the future. Wonderful. He didnt communicate is strategy how he plans to integrate this with the base. Dennis, i want to bring new here. Clearly, this is his strategy right now. This is not his first major acquisition. Hes on a buying spree, and hes trying to grow this company. Facebook doesnt have an operating system like apple and like google, so maybe he has to take these risks. We just dont know and we have to be honest with ourselves that maybe this will turn out to be a great bet. Some other passenger i the management focus needed to keep track of this acquisition, its almost as if kelloggs got into the Meat Processing business. Shareholders want focus from their managements and if this were any other company in any other business, they would probably send that stock down even further than they did today. Dennis, one thing somebody said today this i think is interesting, they reminded us theres a twoclass stock. In reality when you buy into facebook, youre buying in it knowing you have no rights, youre buying into Mark Zuckerberg. Youre giving him a free pass to do wharf he wants. Thats right. And hes using stock for these deals. Same with google. We know all stock deals almost always as a class underperform those that are done with cash. Google to the idea money, money. Do we really think tech conglomerate is the strategy of the future . Maybe its working for google, maybe for amazon, but it becomes very difficult to value that over time and that i think is a concern for investors. Well leave it there on that question. With he have to leave it there. You guys are brutal, skeptical on Mark Zuckerberg, skeptical on the king ipo. Thank you very much, Dennis Berman, from the wall street journal. Coming up, want to give our labor market a muchneeded boost . Our next guest says just reform our broken immigration policy. Find out why he says the Current System is costing the United States literally a new job every 43 seconds. And ever wonder why prescription drugs cost so much more in the u. S. Than almost any other country in the world . Get ready to be outraged about this report coming up a little bit later on the closing bell. [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. [ chainsaw whirring ] humans sometimes life trips us up. Sometimes we trip ourselves up. And although the mistakes may seem to just keep coming at you, so do the solutions. Like multipolicy discounts from Liberty Mutual insurance. Save up to 10 just for combining your auto and home insurance. Call Liberty Mutual insurance at. [ thump ] to speak with an Insurance Expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. Personalized coverage and savings. All the things humans need to make our world a little less imperfect. Call. And ask about all the ways you could save. Liberty mutual insurance. Responsibility. Whats your policy . So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Citigroup shares under pressure here in the after hours as we get back to kayla with more details from the stress tests. Sara, citigroup the only u. S. Firm to see a rejection from the Federal Reserve about its capital plan. We are getting a statement saying what the bank had requested was 6. 4 billion in stock buybacks and raising its dividend from 1 cent to 5 cents. Follows a statement from the ceo saying the firm is deeply disappointed by the decision of the fed saying it only represented a modest level of capital return and still allowed citi to exceed the requirements set by the fed but saying that they will work closely with the fed to meet some of the qualitative guidelines and still saying that the u. S. Had the most stringent but also most conservative Capital Requirements in the world. So meeting those will make it a safer firm. But nonetheless, it can continue its 1. 2 billion common stock buyback throughout the First Quarter of 2015. It will keep the dividend at 1 cent per share. Citi shares down near the lows of the session down nearly 5 after getting the 6. 4 billion buyback rejected and getting a dividend that stays at 1 cent per share. Sara . Very disappointing to shareholders. Kayla, thanks for bringing us that headline. Did you have a thought on citi . Jessie eisinger probably put out the best comment and that is is citi too big to manage . How could this be . This far down that they still cant get it right . Theyre being tested and it will be a question we will have. Our next guest here says america loses a job every 43 seconds. Why . Because we dont let in enough skilled foreign workers. Here to explain in an exclusive cnbc interview, matthew slaughter. Now an economics professor and associate dean at Dartmouth School of business. Everybody is talking about your oped. We all knew we had a broken immigration system that needs to be fixed economically. What we hadnt heard before this is quantifying how much its going to cost. How do you get to the math . Great question. So we let in skilled immigrants through the h1 visa Program Every year but the number of new h1 visas each year is capped at 85,000. Last year and in many earlier years the demand from American Companies to hire talented foreign nationals far exceeds that visa cap. So this estimated job loss comes from trying to calculate how many visas would be demanded by American Companies if they were allowed to demand as many as they need and the knockon effect of talented immigrants spurring additional job creation in america, for example, through the suppliers to these companies. Well, i think a big part of your case it sounds like is theres so much demand for these skilled immigrants to come in and work especially in silicon valley, especially in technology. I was looking at todays companies, king which went public. It has 656 people working there. Box, another one that everyone is talking about has 513 employees. Youre talking about hundreds of thousands of workers in terms of demand. How does that square up . Sure. So one key thing is if you look at a lot of the key Innovative Companies in america like microsoft and google and amazon, they have literally thousands of job postings in america theyre trying to fill. Another key point is the demand for talented skilled nationalings comes from all industries in america. Its High Innovation Industries like i. T. , pharma, biotech but a lot of other industries as well. The other key piece is the demand for these workers to come into america spurs additional hiring of americans importantly through the supply chain of these companies. So the suppliers to the high innovation companies, their hiring increases when skilled immigrants come into these companies. It definitely multiplies. April 1st is the big deadline for employers to put out their applications for h 1b visas. You know the politics. You have worked in washington itself. People understand on both sides of the aisle politically and economically its a smart thing to do, but do you expect any meaningful reform this year . Well, im hopeful, but thats a big question. Last year the u. S. Senate passed a quite good high skilled Immigration Reform piece of a broader Immigration Reform bill. That bill would dramatically expand the number of legal skilled immigrants coming into the United States every year. The house of representatives, it remains to be seen whether this is taken up. The broader policy context is in an environment where republicans, independents, democrats alike are very worried about slow job creation that still plagues america, here is a policy change that we could make that would help accelerate the hiring of americans throughout the country. All right, matthew slaughter, thanks very much. I recommend to everyone to read your oped today. People are talking about it from dartmouth. Thanks for joining us. Carol, i know you have some thoughts on this issue. Go figure. I think particularly in a period of sluggish growth, we should be doing everything that we can to spur innovation and to spur growth, and it just seems to me to open up a Guest Worker Program across a board, it takes the immigration issue off the table and it allows for growth to be created organically. We cannot fake these fed insen sented growth or legislative growth. We need it to come organically. This is something that can be done. Unfortunately, the political theater thats going on is what is standing in our way. I wonder if they need to separate the visas from the path to citizenship. I think its a powerful statement to say we cant find talented American Workers to fill those spots. If youre a company owner, its expensive. They would love to hire american citizens who fit the qualifications. I think its a bigger question of how can we get more of our american citizens into these fields. We did some research here in cincinnati that says that you have to be able to show up on time, follow directions, and work independently and thats what employers say they cant find. Thats not high tech at all. All right. There you go, nathan, from the heartland, cincinnati, ohio. It will be an ongoing discussion thanks to the panel for weighing in on that. Up next, find out which banks you should be betting on now that were finding out whether the Federal Reserve has actually approved those plans for returning cash, dividends, and buybacks to shareholders. A little later, its a battle over bitcoin between Marc Andreessen and Warren Buffett. We want to know what you think. Who is right, andreessen, who thinks bitcoin is for real, or buffett who calls it a mirage . Your best tweets coming up. Omin. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. I dont have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Lets check in again with our Kayla Tausche from headquarters. The news continuing to break about banks and their ability to raise dividends and payouts. Kayla . Sara, were getting some news from what we call the super regionals. These are not the giant banks, just a slight tier below them. Nonetheless the stocks are on the news. Capital one based in virginia has announced it will keep his dividend as is but increasing Share Buyback program to 2. 5 billion. Thats moving the stock by 1. 25 after hours as investors are finally seeing some buybacks over capital one. Pnc based in pennsylvania said it will increase its dividend in the second quarter. It hasnt said by how much it will increase it, only that it will seek an increase then, and that it will be buying back up to 1. 5 billion in shares over the four quarters starting in q2 there. U. S. Bank corp from minnesota said it will increase its dividend. Not saying by how much but it will buy back 2. 25 billion in shares. So u. S. Bank Corp Investors will like what they see there as well. As for what we have already seen, Morgan Stanley shares moving up sharply on news that that bank will now finally start to buy back its shares doubling its dividend to 10 cents per quarter per share. That after several years of basically focusing on the acquisition of smith barney from citigroup and now its starting to distribute some of the returns. We should note that Morgan Stanley off of its after hour highs and now just slightly to the downside. Citigroup, of course, the surprise we were just talking about it before the break. It was one of the only bulge bracket firms to be rejected by the Federal Reserve. The company issuing a statement saying its deeply disappointed. It had wanted to buy back 6. 4 billion in shares and issue a 5 cent per share dividend but, unfortunately, those numbers will be far smaller as it works to resubmit its plan to the Federal Reserve in the next 90 days. Sara, for now ill send it back to you. Thank you for running us through those names. Ka for more on how to trade all of this and what all the capital plans mean, joining me, moshe from credit swoouisse, and robe. Citigroup, reason to be concerned if you are a shareholder . Its certainly disappointing, discounting to management and shareholders. Unfortunately, i think most of the negative action will come pretty much right away though. And what is it going to take . What do you think the Federal Reserve is concerned about . What they said is theres a bunch of different processes, individually none of them were big enough. They have to fix probably a few smaller items in their Capital Planning process. And what about the rest of the banks . Are you content with the results youve gotten . Clearly she said some of the super regionals, capital one spiking. Morgan stanley also getting a positive read from the Federal Reserve. No major surprises . Probably not. I think that, you know, you saw that bank of america and Goldman Sachs had to resubmit their amounts, shave them slightly. I think the fed was pretty tough on the largest banks. Robert albertson, wholistic view, obviously the point of this exercise is to see if the banks are on solid enough footing can handle severe turmoil. Last weeks test combined with this weeks test, are you satisfied theyre in a stronger place . The overall the message is these are battleship and maybe two or three have to close a few more portals. I can understand the shortterm implications for those who didnt quite pass. You have to put it in perspective. We have a 30 , 35 higher capital base. We have trillion dollars of losses written off. Weve got now five stress tests theyve gone through. 200 billion at least in terms of litigation costs and reserves. By the way, thats bigger than the t. A. R. P. Was back in 2009. And asset growth is very slow. So considering all that, i think this you know, the general message is these banks are banks that went through this are about as solid as you can get and the fine edges have to be sanded down on a couple more. Problem always is we dont know exactly what the fed differs with in terms of a bank and particularly when its a qualitative not a quantitative issue which is the case here. And it sounds like its not enough to turn you off from the sector. What do you see for the banks Going Forward . Yield curves steepening, higher Interest Rates, this could be finally a blessing for the financials. Certainly could be. I think what we like is we like the companies that have a little better shot at Revenue Growth which is why weve like citi and those who would benefit from some improvement in the Interest Rate environment. How do you play that, rob alberts albertson . Do you go with a wells fargo . I cant use a specific name. I will say this simply, whats going on with Bank Revenues and were looking at the same thing as well, the momentum really out there that i see is not in the consumer side of the economy, its in the commercial business side of the economy. So im looking at barntion thnke focused more on the business sector. At some point were going to get higher rates, im betting sooner than most. This group still has another good leg up i think. You like citi. Do you like the regionals, the capital ones, pnc banks . We prefer discover to capital one although, you know, i think there is an argument for as 2014 goes into 15 that the regionals will be positioned better. We are starting to see more Capital Distribution that we havent seen since back in 2007. Thank you, gentlemen, for joining me on the breaking news. And kayla, speaking of that, i know you have more information for us here on the banks. The drum beat keeps coming. Were now getting information from jpmorgan. It plans to buy back 6. 5 billion in stock in the four quarters starting on april 1st. It also is increasing its dividend to 40 cents a share. That stock is up just slightly, about half of 1 . This is a pretty tempered increase but we should note it is an increase and many investors were saying based on jpmorgans regulatory issues, maybe it would be more conservative. Bank of america is raising its dividend to 5 Cents Per Share from 1 cent per share and its authorizing a brand new 4 billion buyback. The stock there up just about 0. 1 . But this is a brand new authorization for a company that hasnt really been buying back stock in the years since the financial crisis. We also have one more piece of news on bank of america. We want to make sure we get it to you before the break. That is that bank of america is settling for 9. 3 billion with fhfa. Thats the housing regulator that runs fannie mae and freddie mac. This is a settlement over bad mortgages that countrywide and merrill offloaded. 9. 3 billion, thats a pretty big number. Its also very much higher than the 5 about the 1 billion that jpmorgan inked with the fhfa for the same exact issue last october. A lot of banks are getting legacy issues off their books but 9. 3 billion, when we see First Quarter earnings, you bet that is going to hit the bottom line. Putting the crisis behind them. Thanks very much for all of the news. Up next here on the closing bell, prescription price pain. Ever wonder why you pay much more than people in other nations for the same exact drug . The outrageous answer and how Drug Companies actually defend the pricing is up next. Also, Marc Andreessen pulling no punches in his battle with Warren Buffett over bitcoins legitimacy. Historical track record of old white men who dont understand technology crapping on new technology is i think at 100 . So we want to know who you think is right here in this bitcoin battle of billionaires, andreessen or buffett. Your best tweets coming up a little bit later. Youre watching the closing bell on cnbc, first in business worldwide. Ig business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. The news on the banks just keeps on coming. This time American Express. Yeah. Sara, at this point American Express says it will be raising its dividend to 13 to 26 cents a share. It says it will be buying back 4. 4 billion in stock throughout the rest of 2014 and then it will also have the option to repurchase an additional 1 billion of stock in the First Quarter of 2015 leading up to neck years stress test. We also want to touch on wells fargo which just came out as we were coming back from commercial break. Wells fargo increasing its dividend to 5 Cents Per Share to 35 cents. It will repurchase up to 350 million shares of wells fargo which right now is nearing the 50 mark. Thats the latest. Wells fargo shareholders like the news. The recent biotech selloff has rerekted the whole debate and concern about the rising cost of drugs here in Americas Health care system. Were fortunate that Sheila Dharmarajan is on the panel because shes been covering this story for us as well as the biotech stocks. Sheila, why is it that we pay so much more than people in other countries . Yeah. Im going to get to that explanation in a second. We have a drug to show you what exactly these price differentials are. Gilead, this is the drug at the center of the fire storm. 84,000 for a 12week treatment. The same drug, the very same treatment in europe in the uk for example is only 57,000. In germany its 66,000. And get this, in egypt, in developing countries, far less. In egypt its 900 for that same 12week treatment. Thats about a 99 discount. And the big reason you see these price differentials, particularly in the u. S. Is because the u. S. Government by law cannot negotiate drug prices. That is the law, that is the way it is written. Now, theres certain nuances to that, medicare for example does get certain discounts and rebates. Medicaid gets an automatic 23 discount. Basically its all based off a list price which the drug manufacturers set. Very different in other countries where the governments directly negotiate prices and say to the companies were not going to pay more than x, y, or z. Drug companies will say this makes up for our big r d costs, the costs for drugs that dont make the market. They say they base their pricing on ability to pay. Last week congressman henry waxman sent a letter asking them to justify their pricing. Its been around in the biotech industry for a long time. Now were seeing that resurface again. Now that some of the air is coming out of that trade. Carol, do you have a thought . Its amazing because obviously im somebody who does not like government intervention, but the whole system here does not compute because if you really had the free market, theoretically these Drug Companies would be competing with each other and the prices would be coming down. So, you know, i find the whole thing to be kind of a hot mess. Herb, your thoughts on biotech . You wonder about it. When you see a situation like theres a Company Called quest court, one of the most Controversial Companies out there, big battleground stock has a drug that sells for tens of thousands of dollars in the United States. Theres a synthetic version in europe thats 100, 200, why is there such a different in you see that and you start wondering what companies are doing to keep the less expensive drugs off this market. Sara, Drug Companies cut a deal with obama when Affordable Care act came out and said were only were going to cut our profit by 2 and theyre off the deal. Thats why theyre not showing up. We have to leave it there, guys. It was a great discussion so thanks for weighing in to all of you on those high priced drugs. Coming up, General Electric, one of the worst dow performers this year but a big expansion by the companys Aviation Unit could end up helping this grounded stock take off. Were back in a moment with that story. Story. Tdd 18886486021 there are Trading Opportunities tdd 18886486021 just waiting to be found. Tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. In here. Tdd 18886486021 out there, tdd 18886486021 there are stocks on the move. Tdd 18886486021 in here, streetsmart edge has tdd 18886486021 chart pattern recognition tdd 18886486021 which shows you which ones are bullish or bearish. Tdd 18886486021 now, earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 tdd 18886486021 or go to schwab. Com trading to learn how. Tdd 18886486021 our trading specialists can tdd 18886486021 help you set up your platform. Tdd 18886486021 because when your tools look the way you want tdd 18886486021 and work the way you think, you can trade at your best. Tdd 18886486021 get it all with no trade minimum. Tdd 18886486021 and only 8. 95 a trade. Tdd 18886486021 open an account and earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 to learn more. Tdd 18886486021 so you can take charge tdd 18886486021 of your trading. But i didnt always watch out for myself. With so much noise about health care, i tuned it all out. With unitedhealthcare, i get information that matters. My individual health profile, not random statistics. They even reward me for addressing my health risks. So im doing fine. But shes still gonna give me a heart attack. Innovations that work for you. Thats health in numbers. Unitedhealthcare. We still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness if you qualify, and new car replacement, standard with our auto policies. So call Liberty Mutual at. Today. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Boeing and airbus, the two largest planemakers are rapidly stepping up production. And that could load to a boom for General Electric. A lot of time were talking about the orders for new airplanes. Thats great for boeing and airbus. And they forget that g. E. That is one of the primary suppliers of engines, its been in a major expansion over the last couple of years. The latest coming today, that theyre going to build a finally Assembly Plant in lafayette, indiana. Adding 200 jobs through 2020, as they build the new leap engine. Thats a lowemissions, higher fuelefficient engine. Talking to g. E. In innovation, they see no slowdown in demand around the world. The commercial Airline Market is robust. We think demand will grow 6 this year alone, worldwide. You know, we make it here and ship it to the rest of the world. Over 60 of what we assemble and build is shipped outside of the United States. And speaking of the u. S. , take a look at this map. Over the last seven years, General Electric aviation has added seven facilities around the United States. Most of these have been located near universities where they can tap in at the Skilled Labor or the talent at the universities. As you look at shares of g. E. Over the last year, it hasnt been setting the world on fire. But g. E. Aviation, theyre looking at a record backlog right now. Back to you. An interesting player, with boeing and airbus. Phil lebeau, thanks for bringing us that story. Marc andreessen, calling bitcoin the future. Warren buffett called it a mirage. Who has got it right . Youve been tweeting fast and furious. Our panel is all worked up. Well reveal the best answers for you next. Plus, you wont believe what they have to say about the ideas and the Market Action and a lot more. T more. [ bagpipes play ] make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. On my journey across america, ive learned that when you ask someone in texas if they want big savings on car insurance, its a bit like asking if they want a big hat. scuse me. Or a big steak. Or big hair. I think we have our answer. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. [ male announcer ] how could a luminous protein in jellyfish, impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Warren buffett, not a fan of bitcoin. Blasting its here on cnbc. And then, Marc Andreessen pulled no punches when reacting to that. The historical track record of old, white men who dont understand new technology i think is at 100 . We wanted to know from you in the battle of bitcoin, who is right . Marc andreessen or Warren Buffett . Warren tweets, age is the best teacher in this market. Warren may not get tech but he gets investing. Reasonable tweet there. Buffet is a richer, older white guy. But andreessen knows tech. Buffet is right. Ask anybody in mt. Gox, their money did turn into a mirage. Three for three, siding with Warren Buffett. Andreessen needs to be careful. Hes not a youngster in silicon valley. I dont like the ageist comment, either. We said the same thing back in the 90s, right . The younger guys said Warren Buffett didnt know what he was talking about. Who was right . He would agree with that. He would say, he invests in what he knows. Marc andreessen knows tech. He has so much to gain from this. He has a ton to gain. The Distribution Process of it, a distributor or something, you cant underestimate this point. An old white guy. You are not an old white guy. Representing, herb, i love it. It gets at the point that this is going to be a hot debate. The believers and the haters and every, single day theres another highprofile example of this. Final thought as we go into tomorrows trade . All about the banks. Everybody is talking about citi and how it failed the fed test. And this is why we saw vikram leave the bank. The ken lewis story is interesting. Accountabilitys a key theme. And, herb, youre going to download your candy crush game. Fast money is coming up in a few seconds. Amanda, whats on tap . Youve been talking about the banks. Were going to talk about the banks, as well. And we have a very respected dick bove. Hes going to give the analysis of the stress tests coming up. Fast money starts right now. Were live from the Nasdaq Market site in new yorks time square. Im standing in for melissa lee for the next three days. Youre stuck with me. Awesome. Sorry. Well, we have our traders here tonight. Tim seymour, steve grasso, Karen Finerman and guy adami. It was an ugly day on wall street, right . The major indices across the board, with the nasdaq, the biggest
comparemela.com © 2020. All Rights Reserved.