Transcripts For CNBC Closing Bell 20150413

48 was the intraday height that it hit. The closing high was 5,042 back in march. The apple watch watch continues with orders reported at over 1 million on day one. They sold out in a couple of hours online. I think it was 1 million watches. You said dollars. Did i say dollars . Its a mistake we make freely. What will be the real big seller for the bottom line . This would be the new mac book. Yes. Very thin starting at 1,300. Some think that this could be a major driver for apples profits. Thats what theyre really watching right now. 90 minutes from now, spacex is scheduled to launch a rocket from Cape Canaveral. They will attempt to reland the booster portion of the rocket the portion that normally explodes, goes away. Theyre going to try to land it on a ship in the atlantic ocean, so they can reuse it again. Elan musk wants to be reuse this to save money and so forth. Other thing is they have an italian astronaut, a woman on the International Space station thats gone all this time without her cappuccinomaker. You have an espressomaker on board. Shes been drinking instant coffee all this time. It is a step down for an italian. Its an italian cappuccinomaker theyre trying to get up to her. So much coming up here. Lets get to the markets and see how we stand right now. The dow, as michelle was saying were fading into the last hour of trade, down 61 points at the moment, back below 18,000. S p is down 6. Theres the nasdaq. We were love 18,000 in the dow. We were above 5,000 on the nasdaq. Were back below those two key levels as we go into the final hour of trade. Lets go to renee norris back with us today. Jeff killburg from Kkm Financial out in chicago, anthony chan from chase is with us here at the New York Stock Exchange so is steven wood from Russell Investments and so is kenny polkari. Kenny p. I want to start with you. The market is rean dering today. This is an important week isnt it . Its a big week as well as on the microfront and the macro front. Theres no reason to jump out in front of it. Youre not sure which way its going to go. The macro reports will get better. What are we going to hear from the stronger dollar the future guidance . Theres no reason for big Asset Management to jump in front of it. Quite honestly trading around this flat line feels like its the right thing for the market to be doing. Jeff do you agree . Of those two factors we were talking about, all the Economic Data we were going to watch to tell us whether or not this recent slowdown is for real or the earnings, which matters to you most and what do you think drives the markets more this week . Here in chicago, michelle earnings are the paramount focus, specifically the forward guidance. Theres more of a rear view snap pot. Goldman on thursday, those financials, the heart of the u. S. Economy, we want to hear what they have to think about forward guidance, potential damage of the u. S. Dollar spiking. This is so important going forward. Guidance guidance guidance right now. That is for sure. As you know, expectations are not very high for the First Quarter and last week two highprofile companies, alcoa and bed, bath beyond reported. Both of those stocks got clobbered as well because of girdance. You dont think in the aggregate it will be as bad as feared for the First Quarter. Why . I really dont. Theres the usual suspects. We have the Energy Sector thats been hit pretty bad. Weather is still playing a major roll in here. Auto units are up a million year over year. The Retail Sector has been pretty strong in some areas. Where well have an offset in one area i think the consumer will pick up in the other. That would necessarily be coming from gasoline i would think, right, rene . Absolutely. Some of that actually is still coming from wage growth. Weve been seeing that across all sectors as well. So theres a lot of different dynamics that are going there. This quarter is messy, its going to be uneven. I think the consumer will rise to the occasion. Your assessment of the market right here as we see this hesitancy against a big number like 5,000 in the nasdaq. I think trending list today. The action is coming out of europe right now. We see whats happening with the European Central bank negative yields in europe. Everyone is on dollar watch, earnings to oil, also the federal reserve. Why, stephen . We saw the german tenyear go negative today. Thats a crazy thing, historic. Why does that maer to the american markets . Well what were looking at is a pull into european liquidity. The European Central bank is trying to reproduce success that the american federal reservist had with their quantitative easing. Weaver seeing a Global Quantitative easing coming from the europeans, drive the euro down, goose up their economies. The japanese are doing it as well. What were seeing is the federal reserve, last person out of this. I think the fed is still on dollar watch. Theyll probably wait until september. My take is that theyre not data dependent until they get positive. Starting with the september meeting they start looking at the data. Speaking with anthony, we get inflation reports out this week as well. I know the fed will be watching that very carefully. What are your expectations there . I think we will start to see life on the inflation front. Energy will not be as much of a factor. We know the economy will get better after the cold weather. We saw that last year. The decline in the First Quarter will not be as great as it was last year in the First Quarter. Youll start to get that bounce back. Youll get a bounce back in retail sales. You might even get a nice bounce back in industrial production. As this starts to occur, i think a lot of the anxiety thats out there is going to go away. Remember, the dollar has been declining for quite some time. Companies are learning to maneuver. It will be fascinating to hear on the guidance how companies are dealing with the stronger dollar and how much are they benefiting from those Lower Energy Prices . Thats all going to come out in the guidance. Thats going to shape how the markets handle and digest this information. I want to ask you about something stephen wood brought up. The u. S. Federal bank will do what the u. S. Federal reserve did. Theyll do quantitative easing. That gave wine to the back of u. S. Stocks for years. They think the same thing will happen in europe. Are you telling your clients to put money in europe because of that . Absolutely. Or are you saying stay domestic . Absolutely. Actually, as far back as last year, we definitely have len the our playbook i think, to the european marketplace and japan for that matter. Europe i think offers fantastic valuations. If you are early to the party or late to the party, it doesnt really matter. I think that that run is going to take place for quite some time. Europe is very attractive and japan as well. How do you tell them to do it when they also if youre a dallasbased investor and youre buying something priced in euros, you could lose on the money side. Do you tell them to hedge it . An awful lot the hedged etfs out there. Ive also looked at the dollar chart and the dollar seems to have peaked out in march. We have a double top. Im looking athat closely. Its possible that thats going to turn into a resistance level in which case being an unhedged european investments, etfs makes a lot of sense. Its a lot cheaper. Kenny p. Exactly. You and i have had this very conversation for a while now about going to europe. You feel europe the action in asia as well what does that do to the u. S. Market then . Are we going to see more lackluster trading here . Will 18,000 be the place we hover for a while and 5,000 on the nasdaq . Listen i think that you know, by the end of the year our market returns back to normal again. Some move between 8 and 10 by the end of the year. We churn for a little bit. I do think, you said it, and rene has said it, there is tune in the europe. The ecb just started with their program. We know here in the states the fed had their qe program here for six years. Its up better than 200 plus percent. The ecb has just begun this process. Thats one of the main reasons people should be considering europe. Were going to end it there as long as we have it all figured out. We know where its going from here. Thank you all. Appreciate your thoughts on todays market action. Thank you. Lets send it over to dominic chu chu. Nokia is possibly in advanced talks to acquire part units of Alcatel Lucent, specifically some of the wireless assets. The potential acquisition of the assets would be to help strengthen the Telecom Equipment and Wireless Networks business with nokia to better compete with ericksonssonericsson. The original Alcatel Lucent deal remember that . Yes. To see that come around after all this time. Both are higher. Interesting. We have about 50 minutes left in the trading session here the dow off the lows down 40 points here. The s p is down 4 and look at your nasdaq. Heading back to 5,000. 4,999. Just half a point away. Coming up financial stocks gaining ground ahead of a huge wave of earnings this week. Dominic chu will have a special report on how they usually perform after their earnings hit the take. Sprint plans to do what doctors rarely do these days that would be making house calls. Were not making a joke here. Well tell you why the cell phone join the is borrowing a page from the old dr. Playbook. Plus the pros will discuss if this will actually help bring up profits and the stock. Still to come. 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Can we stay above 5,000 for only the second time this year bit close today . Keep an eye on that. By the way, here are the 30 components of the Dow Jones Industrial average. Looks like roughly twothirds of them are negative today. Jpmorgan, thats interesting, jpmorgan getting ready to report earnings this week and its the best performer today. General electric, by far, the best performer on friday with the Share Buy Back and the sale of the ge capital announcement. Giving it back today. Thats down almost 3 in todays trade. Doctors may not make house calls anymore but sprint is about to offer that service. Sprint is offering Home Delivery and setup of your smartphone. The ceo was on squawk alley earlier today. Heres some of what he had to say. Good to see you. Im all for thinking outside the box and inknow vacation and all that stuff. This feels like a pr stunt. Were falling for it. Its eye nice gimmick, good gimmick. Maybe if people get their phones brought to them. Maybe for older people it will be a nice thing to help train them on their phones. Thats wonderful. Long term i dont see this as meaningful for sprint or its brand. The stock is down over 50 over the last year. Its market cap is basically a tenth of verizon. Its got no great identity right now. And so i dont see this really changing the picture. However fun it might be. Bert im worried that a lot of people will like it. It sounds incredibly expensive to me to send somebody out house to house and do this. It has to be a much lower margin result. Youre completely correct. Sprint will stabilize its sales but also profitably increase sales. Because by making the house call and selling accessories, sales can go up 500 . Customer retention can double or triple. If we look at best buy as the proxy in this business case, the reason best buy is alive and circuit city is dead best buy had the geek squad making house calls. Sprint is borrowing a page from best buys playbook. It may work out. They will take over a third of the remaining 1,700 radio shack stores out there. A store within a store kind of a concept. What do you make of that . Its a smart move for sprint because verizon had far more locations across america and elsewhere than sprint does. With the radio shack, sprints essentially getting the stars at a nickel on the dollar achieving National Size and scale in all the key markets. Its a great tune to be relevant and meaningful with good service in the store. As michelle referenced as you did, bill, service at home on a 360 degree basis which may be unbeatable in this market where we have more disposable income and less disposal time. Can we go back to the idea though isnt it much more expensive to send somebody out house to house versus having them come to the store . You think there will be enough volume at the homes to offset the higher cost . Michelle youre absolutely right. Its certainly more expensive. But the cost of every cut of a customer from sprint is a few hundred dollars. The cost of a house call is less than 100. Typical transaction in the store would be less than 100. The transaction for a house call would be 300 to 500. In some cases, closer to several hundred dollars. What are they saying, people just arent going to the stores to get their phones . Why think about this kind of a service . That does seem to be the case. If we look at the tremendous astounding transfer of value from the cell phone years of ten years ago, apple and samsung in 2015 . They have to take numbers to get into the apple store. Sprint is saying we will drive out to you. Its a sign of weak i appreciate the creativity and the radio shack deal is interesting and creative there, too. But, again, what does sprint stand for . Can you give it to us in ten words, seven words . I dont know if marcelo talked about that. Its the brand of company where you wonder whats it about . Last question, quickly, dennis, whats your assessment of Marcelo Claure . I think hes done a nice job. The real power lies with the founder in japan. His idea to bring sprint and tmobile together. Marcelo is a good step but all eyes need to be on masa. Well see what happens with sprint and radio shack, too. Thank you, guys. Thank you. You bet. Heading toward the close. 40 minutes left in the trading session with the dow down 52 points, back below no its holding at 18,500 here. Its the nasdaq teasing us today. Back below 5,000. Will it close above 0,000. Uhoh. Make or break time for financials as they gear up to post earnings. Also head with all the fan fair surrounding the apple watch, could the new mac book end up being the new moneymaker for apple . Well continue on closing bell. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. 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Dominic chu has been crunching the numbers on how stocks perform after the tape. I could say i crunched the numbers but im not that smart. Our friends crunched the numbers all the way going back to 2010 to see how well the bank stocks do on the day they report earnings. We went back to january 2010 to look at the average daily performance of some of the big banks reporting this week and how they do. First off, tomorrow jpmorgan and wells fargo. Jpmorgan on average not a great day. Down about a third of a percent. Its only positive trading wise the day after its Earnings Report comes out 38 of the time. If you look at wells fargo, its down 0. 6 positive just 38 of the time. If we fast forward to later on this week, bank of america, thats one of the bigger losers here. Its only positive less than onethird of the time. Goldman sachs and citi round out our week. Goldman sachs down 0. 2 on average. Positive 38 of the time. You can call it the real outperformer here is citigroup which trades flat. Its a coin toss positive about 52 of the time. They all report before the bell. The regular trading session generally speaking since the zero Interest Rate policy began after the financial crisis these banks have not been at least a positive trade generally speaking in that time since 2010 guys. Back over to you. As you were reeling each of those off, i checked them quickly. All but goldman is fractionally higher today going into these reports. Thanks appreciate it. Lets bring in jack moore and another guest from the street. Com. Thanks for having us. Discuss what were talking about here in terms of the financials of this quarter. In theory Interest Rates are going up that should be a great time for the banks. The moment that happens, that will be great. Theyll be able to jack up the rates quickly. There will be a lag between when they have to jack up the deposit rates. I own with jim cramer and our Charitable Trust wells fargo. We love that one. It underperforms a little bit on the day that it reports but the important thing its simple. Its easy to understand and digest their earnings. These diversified banks, investment banks they do many many things. Trade up 1 go down 1 . It takes so much time to figure out what the results mean. Wells fargo is all about mortgages. Very simple straight forward. What if Interest Rates dont go up . Were charging 1. 9 here on the tenyear. Come on. You have to give them credit for what theyve done the last six years. Uhoh. Considering the shape of the yield curve. Yes considering the circumstances, wells fargo and actually a lot of these banks, have done incredibly well. Its prepared them just in the energy right now that they have to become more efficient. The banks have had to become more efficient and nimble and be able to extract earnings out of revenues. Got it. Classing value investors, do you see values in the financial stocks as we get ready for earnings. In some but not others. The regional banks have traded up because people are expecting Interest Rates to go up. The secret is that lending money to people is not that profitable a business. That is what regional banks tend to do. What we like is the Financial Institutions that have hidden Asset Management businesses. Lazzard, for example. Goldman sachs has more than a trillion dollars in their Asset Management business, morgan stanley, more than 2 trillion. Cowan and company has ramius the alternative Asset Management business. What we want to find right now is the diversified firms that have the good Asset Management businesses that theyre not getting real credit for. Interesting. You want to keep it simple as much as possible. Right. I think they make sense right now, the diversified. Theyre not totally relying on the lending spread. Longer term the best positions are the ones that are going to be able to have an explosion of earnings power once rates rise. Thats why im not buying wells fargo into the print. Im buying it. Rates will go up but regulations will stay where they are. If anything become more stringent down the road. Thats why we love wells fargo again. Its the teachers pet of the regulators of the banks. They done the have the charge. Thats why the scariest day for a lot of these banks, Jpmorgan Goldman sachs, citi is earnings. They have extra overhangs, expenses that will come out of nowhere. It will crush the stock. Sometimes they announce them retroactively. Charles, what if we see the longterm Interest Rates start to rise. They can pay deposits of 1 but charge as much as 6 or 7 for a mortgage. They could make a lot of money on that spread there. Would you then be interested in regionals . That scenario we would argue is widely in the stocks already. If you look at the names that i like, trading at more like 1. 1 times book. Jpmorgan excuse me Goldman Sachs and morgan stanley, cowan is trading at less than book. For the real estaten for the reasons you just said, wed argue that that Interest Rate play is already in the stocks and the business of lending money is a commodity business. Managing an emerging market fund is not a commodity business. All right. Well see what the numbers look like when they come out. They should be interesting good to see you both jack charles, thanks for joining us. Thanks for having us on. You bet. Time for a cnbc news update with sue herrera. Heres whats happening, the heiress of the nina ricci house was imposed a 1. 1 million fine and confiscation of two Properties Worth more than 4 million. The Treasury Department says the deficit through the first half of the year is running slightly above last years pace with the march imbalance up 16 billion over a year ago. But the Congressional Budget Office is forecasting the deficit for the whole year at about 486 billion and thats only a bit higher than a year ago. Federal Officials Say 95 passengers and 5 crew members aboard the celebrity infiniti cruise ship have been sickened by the gastrointestinal illness known as the norovirus. The infinity concluding a 15night cruise. The nba is ending a 28year partnership with cocacola. Adam silver made at announcement in new york city. Financial terms not disclosed. And that is cnbcs news update for this hour. Back to you, bill. Thank you, sue. We have a news alert on tv ratings for the masters, which even you watched this year. Yes, theyll be good. Dom chu, how did it come out . All three of us added to this. According to the fast ratings that came out right now, cbs sports final round coverage of the masters garnered an average 14 million viewers. Thats a 26 increase over last year. The ratings was about 8. 7 out of 19. Thats what it garnered in terms of share. So again both 26 increases at its peak the ratings share was 10. 6 ahead of viewership at its peak, between 6 30 and 7 00 the final round, the 18th hole of 17. 7 million viewers. So a huge number of people tuned in to watch Jordan Spieth with the recordsetting performance at the masters. A nice ratings boost. Im sure a lot of people have been tweeting in on this tiger, phil justin rose all those guys as part of the mix, rory mcilroy had something to do with the ratings boost as well. You bet. As good as the sunday numbers were, saturday was 48 better than the previous year. Wow. Unbelievable. We need protagonists. Thats what the game needs. If you get them this is what happens. Personalities. Thats for sure. Thanks dom. Sure. 28 minutes before the bell. The Dow Jones Industrial average, all the major averages have gone negative. Take a look. The dow is lower by nearly 70 the nasdaq is lower by 4, the s p lower by 8. So much hesitancy before the key level. Somebody buy something. When we come back apples new watch generating buzz. But will the new mac book turn out to be the real moneymaker for apple. Well talk about that, after this. When a rewards card is designed to sync with your life it gets talked about. So you can live the way you live, and enjoy all the rewards. Chase sapphire preferred. So you can. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Moving lower here as we go into the last half hour of trade. Dow at the lows of the session, down 67 points. The s p is down 8 and the nasdaq is down 4 points right now. Apples watch, selling out early friday. Thats according to reports. Josh lipton has the early read on apples latest musthave gadget. Sounds like its going okay. Demand so far has been robust. Thats how analysts are describing the response to the apple watch. Rbc says his checks indicate that shipments across the board are delayed up to eight weeks, some extending 12 weeks. He thinks apple will sell up to 5 million watches in the june quarter and as many as 20 Million Units in the first 12 month months. If hes right, that would mean 8 billion in revenue, by his estimate, 4 of total sales. The watch wouldnt have a big Financial Impact at least in the near term but remember ceo tim cook is playing the long game here. After all, this is the first generation of the apple watch. Were only just beginning to see the Developer Community roll out watchspecific apps which analysts say will be critical to apples ability to scale this product quickly. Under cooks leadership apple has flourished, that stock is up more than 70 in the past 12 months and nearly 140 since he became ceo. But cook has a new challenge now, this is apples first new product category in five years. And apple must win over the consumer. Bill back to you. Josh thank you very much. The apple watch might have been the most anticipated gadget of the year but is it the new macbook that will steal the show for the apple . The reviews have been fasten fantastic and the starring price of 1300 bucks is attractive in this category here right . Lets bring in our own jon fortt who has the new macbook on set and lance is here as well. Lets show everybody. Is this the gold one, the grey or silver . This is just i dont have the gold one. But i can show you look how thin this thing is. Its so light. Its a retina display. 12 inch. 12 inch right. Retina display. Why is it getting rave reviews . Well, this thing is half an inch thick at its thickest point. That combined with the retina display makes it really really slim. Its like ipadtype feel but has laptop power. Not high end laptop power but laptop power. At 1300 bucks, thats the same price as the macbook pro, which has the ports, a faster processor, which has the screen thats an inch bigger with the retina display also. Do you use your ipad less because of this. Is this going to cannibalize . It will. Lance says no. You think it will cannibalize the ipad . It doesnt have a touch screen. It remindered me of the first ipad. Its just a half pound different in weight and the size is similar. I even held them up next to each other. This is something thats still about work about sort of pure play, word processing, email. The ipad is obviously a lot of content consumption, some work. Not for the highend executive user, though. If you need a screen thats bigger than the iphone 6 plus and you need to be productive what do you grab thats ult ultrapotable . I think those executives are fantastic. And the first time they see this, they say where am do i plug in my usb port . If im an apple user ive got my ipad ive got my apple watch, ive got my iphone and ive got this macbook here. Is there redundancy there that i dont need to deal with here . This machine is for somebody who has a ton of machine for every purpose. This is not going to be your main computer. This is going to be your road dog. You take it on the road. You want to carry something light, get stuff done. Thats where it does compete probably with an ipad for some people more than with a fullfeature m a. C. It sounds like roughly 20 Million Computers are doing 20 million a year. Iphones are doing 70 million. Per quarter. Per quarter. Phones are off the charts. Off the charts. The numbers that josh gave out suggest 20 million watches in a year. These two, computers and watches are competing. Where are the margins better though . Its unclear at this point. The first watch to roll off the line has virtually zero of course of course. I think apple is Still Deciding how to sell this watch, what demand is going to be. Lance, what time is it . Its apple watch time. Ive been wearing the apple watch for over a week and a half. Can you see it . There we go. Hell find you. Here we go. It tells time. It tells time. It has apps. It has notifications, obviously it has a full day of battery life. Ive been wearing it for a week and a half. Ive done things with this watch like buy stuff. I have used apple pay. Have you answered the phone. I have answered the phone. Ive answered the phone. When youre not in a crowd and loud place, you can make a phone call without doing the dick tracey thing. You can put it down a little bit. Thats been powerful. In addition to apple pay, you have the digital touch which is silly, send a heart beat this and that. I enjoyed checking into my flights, including security with the watch. That was pretty cool. This is to me right now, the best spart best smart watch on the market. I know its more expensive but it really it manages to be both a utility device and a fashion object. And of course ive got right now the stainless steel one with the link band. Theres a lot of different choices. This guy costs 1,000. But you know you can go down to 349. I am curious, you know obviously about the Sales Numbers that were hearing. That sounds good to me. 1 million on the first day. Right, it does sound really good but its not apple saying it. Until apple comes forward with the numbers. Traditionally theyll give us the Sales Numbers after the introduction. Not on a new product necessarily. They dont want to focus too much on the numbers. Theres a lot of noise in the beginning. People will try to order ten of them to corner the market and sell them on ebay. They want to see by geography. What did they say, 1. 3. The people bought 1. 3 aim watches. Thanks. Hell be back with us next hour. John will, yes. 17 minutes left in the trading session here. Holding near the lows of the session with the dow down 61 points, below 18,000 s p is down 6, the nasdaq below 5,000. Coming up do people have enough to retire . We always hear that the answer is no. But if you ask them, they think they do. Thats a problem. Were going to tackle it later on the closing bell. Sexiest. Baddest. Safest,. Tightest,. Quickest,. Harshest. Or nothing. At mercedesbenz we do things one way or we dont do them at all. The 2015 cclass. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. In the us, three in ten College Students drop out. But how can you spot whos at risk . The one who lives far from campus . The one who works the night shift . The one with new responsibilities . One thing cant tell you, but the right combination can. Universities are using ibm analytics to understand pressures in and out of the classroom some expect to cut dropout rates by twentyfive percent. 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Very busy dominic chu is back with us watching movers on this afternoon. Dom . Ill tie one of them to the masters, just you watch. Shares of symantec are getting slammed. Despite the fact that they have considering selling off their Veritas Software system. Veritas could bring in 8 billion in a possible sale. Sears and Simon Property group are striking a join the venture agreement on Ten Properties that will raise 114 million for the retail perp this is sears secretary move to raise cash from the value of its real estate assets. Like i said, shares of under armour in the spotlight today. The activewear company scored big time this year at the masters with its endorsement of Jordan Spieth. Hes the companys first endorse endorser to win a major tournament. They had a two years left on their deal with jordan. They tore it up and they signed him to a tenyear wow. Deal. Yes, ten years. He will be endorsing them for the next ten years. Thats the kind of deal that tiger woods and rory mcilroy got with nike but we dont know the terms, the financial side of the deal. Well see what happens here. I think jordan will do just fine. I think youre right, guys. Yes. It speaks to how aggressive under armour has been on so many fronts. They take no prisoners. The ceo is out for kevin plank is a guy that has a chip on his shoulder and he wants to go after all these guys. Hes doing well these days as evidenced by the symptom price. We should note nike is a much bigger franchise than under armour is. For now. Thanks, dom. 12 minutes before the bell. The Dow Jones Industrial average, the nasdaq and the s p, all in negative territory. The dow off by 70 points s p lower by 8 and the nasdaq is now down by 6. 5,000 gets farther and farther away. Yes, weve had an upand down session for stocks. Well be back in just a moment. If youre looking for a car that drives you. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Heading to the close. Were just kind of moving lower. We are the bias is toward the sale side but not much. The dow down 77 and the nasdaq pulling even further back from that 5,000 level. Joining us on set is john garvey, Global Financial Services Leader of pricewaterhousecoopers, out with their latest Global Market outlook. You did a big survey of what all these expectations are about the future of the capital markets. Im struck by 76 of the people you surveyed believe theres going to be some kind of financial major center in the world coming out of asia that will rival new york and london. Yes. Why do they think that and where is it going to be . It has to do with the Overall Economic waiting that asia is increasingly holing in our world today. Right . We actually dont agree with the survey. On that point. On that point, yes. Why not . We see that the market is more regionalized and bifurcated or trifurcated in terms of shanghai or tokyo in International Markets which are split between hong kong and singapore. We dont see any one market moving to dominance. Doesnt Technology Trump geography . Youve been doing this a while. Yes. Right here. Yes. Working at this corner happen. Technology has changed the way we view the investment world out there. Well the technology has made it easier for people to invest. Its cheaper and its faster. But as far as the asian markets, having the access to it, i think thats the bigger thing. If the chinese have access to their own markets, it could become, you know like you said much larger. Simply, the u. S. Is one single, huge large market. London is one huge, large market. Back when i used to cover the asian markets, theres 20 of them. Theres all these tiny markets spread all over the place. If they can imagine to put all their liquidity and managers in the same place, but they dont. It doesnt seem like theyre rival the United States for a very, very long time. Its hard to see how you could have a rival, a single rival. The report also talks about the increasinge inginge inging balkanization. You can see it with the euro versus the pound. If the uk pulls out, for example, of the euro youll see a fragmentation in europe as well. Put your trader hat on before we go here. A lot of earnings weve established coming out this week. Right now ive been out of it for a while. You have been. Were not going to see major surprises in either direction. I think most companies have cut back their expectations. You have to wait and see what they say about future earnings going into the Third Quarter and going into the end of the year. Well see. A lot of these companies arent giving you that much of an indication of how well theyre doing. Right. So it could affect the market longer term. But, you know, were still only halfway through. Youre still sitting on the sideline. Yes. Thanks, guys. Peter as always, why dont you get back to work. Were coming back with the closing countdown with the market heading lower here. After the bell the countdown is on for elon musks spacex to land a reusable rocket booster after liftoff. It has never been done before. And its really hard because its rocket science. Remember . First attempt failed in january. Well go live to Cape Canaveral air station in florida for all the action. I didnt say its brain surgery. No. And will the espressomaker make it into outer space . Thats the big question. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Anything worth pursuing requires knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Its more than the cloud. Its multilayered security and flexibility. With centurylink you get advanced technology solutions. Including cloud and hosting services all from a trusted it partner. Centurylink. Your link to whats next. Two minutes left to the close. Two levels weve been watching today on the dow 18,000 we were hovering above it for the morning session. Headed to the afternoon and then the selling picked up in ernest especially this last hour and a half here. Down 70 points. Now at 17,986. The other level weve been watching nasdaq 5,000, weve only closed above it once this year. First time in 15 years. We were at 5,024. Actually we closed twice. Thank you, gary. 5,024. We got up to early in the session, hit the afternoon, we see selling. Down about 7 points right now at 4,989. Well keep an eye on the financials using the s p Financial Sectors. Bob pisani. This is still an important part of the overall business for some of the big banks, particularly jpmorgans and Goldman Sachs. If the russell closes at a historic high. We had another buyer strike im getting aknowed by this. 2. 5 million shares. Dont you think everybody is waiting for earnings right now . Yes. Were not getting a lot of guidance going into this. We expect it will be a bad reporting season because of the weather and the dollar. Were down 3 for s p earnings. Normally you beat by 3 . The problem with the rat race is even if you win, youre still a rat. The problems with the earnings season is even if they beat it its still lousy, youre flat for the quarter. I think a lot of traders are having a hard time getting around that reality. Were going out with minus signs right now although the russel is finishing slightly positive so we could get a record there. Keep an eye on that. All right. A lot to come now in the second hour of the closing bell. Welcome to the second hour of the closing bell. Im Michelle Carusocabrera the nasdaq finishing lower by 8 points, the dow down 78 points the s p down 9 points. On todays panel, dan greenhouse and george fort. Also with us, guy adami. What happened today. Nothing. Is it fear of the earnings season the dollar macro Economic Data that will tell us the economy is slowing . Whats up . I dont want to get that crazy today. Weve seen moves like this. I dont want to try to explain it because it would be a fools eranned to try to do so. Goldman sachs has been a monster, closed lower on the day. Black stone, wells fargo, jpmorgan, what disappoints me though, on the other side of that coin is a continued underperformance of the transports. Having trouble at 168 from november until recently banged up against that level, a number of times. Seemingly has failed. I think the transports you have to watch carefully. Bill mentioned the iwm, the russell. Ill mention it as well. Its critical that holds 121. Why . Because technically thats where we broke out from. If you look there were double tops at 121. When we traded it above it you saw the quick ramp. What was past resistance becomes support. You find that in the form of 121. I didnt dance around your question. I like it. I like it. He goes right to the heart of it. Dan greenhouse what do you make of the relative strength of the bank . Usually financials for the last 20 years have been a leading sector. We are dealing with a new era for the banks in the wake of the financial crisis. We know this story quite well return on equities are lower, risk taking is lower, Balance Sheets are smaller. With all of that stock price appreciation is probably going to be smaller as well. I think some of the issues youre dealing with now are dissimilar to what you were dealing with as an extension, what you were dealing with a year ago. Investors some of which i met with just today for lunch. Theyre waiting for the Interest Rate story to improve and the capital return story to improve. In the absence of a breakout in the economy or a breakdown in the amount of regulatory oversight, full disclosure the cases invests are as challenged today as they have been. Were starting to pick up steam. Thats building optimism leading into earnings season. Last quarter for Fourth Quarter earnings season the banks were atrocious to start earnings season. It was. It was a very rough quarter. That dampened sentiment for the entire earnings season. It tooks week to recover. Jon fortt, we talk about fed policy and the weather and all the things that will affect earnings, and the dollar is technology immuned to all of that necessarily . I dont think so. We had the preannouncement from intel. Well get guidance coming up this week. That will be important. We want to hear what the followon effects of the slowdown intel noted in the pc market might be. The guidance in that area will be important, too. Well see effects on microsoft, the memory players, perhaps, when they report. Tech by no means immund. Weve seen this activist move on qualcomm which say sign of the times, some weakness, slowdown in the Growth Prospects of certain large techs. Dan greenhouse whats more important, earnings or the Economic Data at this point . We have a slew of both coming up. Earnings. Its always earnings. Yeah . It hasnt felt like it. Its felt like a macro driven market for years. The fed is a major topic of conversation, every client meeting we go to. If you want to say the stock market is in a bubble because of the fedak test thats fine thats your business. If earnings are improving, at a minimum, over time stocks will track that. We can fret about ben bernanke and janet yellen and mario draghi and the like and rightfully so. But if earnings are not going up, the stock market is not going to go up. Do we exclude all of the Energy Stocks this time around . Yes. When you look at the earnings, if Energy Earnings are supposed to be down between 40 and 60 . 65 the way that i do it. Its really killer. Listen heres the flat out bottom line. Ive been saying this this has been our position for a few weeks now. I said this on air, the twitterverse got angry. Heres the story with the spectators you cant exclude it as if it doesnt matter. Look at this particular earnings season as where the exclusivity is. A 65 contraction on a yearoveryear basis on Energy Earnings is really bad. When you exclude Energy Earnings will be up 2 this quarter, maybe 3 a quarter after that maybe 5 a quarter after that. This is not to say you should ignore everything but use it as illustrative of the singleness the singularity of the issues. Guy adami yo you always have something youre keeping an eye on that nobody else is watching right now, youre watching for a breakout or a breakdown of some kind . Netflix. Great question. Thats why i like you. You cut right to the chase. Look at what netflix has done since last quarter. Blew through 400 made its way up corrected back to effectively 40099ish, blew through 440. Were dealing with a potential alltime high in earnings. I think that thing explodes through 500 on the upside. Their International Growth is a real story. There are so many nonbelievers in the name. One name that sticks out, especially today, is netflix. Guy, were obviously all talking about the financials. Csx reports this week as well. You brought up the transports before. What do you think about the rails specifically and the rails generally, csx specifically . Theyve been disappointing. The rails have not performed. Csx specifically, i cant speak to. I havent looked at it. The sector now for the la month or so has clearly underperformed. Thats a big drag on the transports. It gives me pause. If you look at the rails, i could speak to unp and ksu. Valuation wise theyve getting interesting at these levels. Cant you exclude the rails from transports the same way you want to exclude im not excluding anything. Im making a point here. A lot of the reason were seeing weakness is the rails is the weakness in oil. Oil prices are down airlines should be doing better. Airlines i learned long ago, airlines are not about the fuel cost. Its about the load factor. The demand for the seats. Demands have been there. Cheaper oil must help. I mean over the last couple of Years Airlines have performed fantastically. Warren buffett was on air saying he would never invest in airlines. Its a losing proposition. He did once. Today the situation in the airlines is meaningly different. Im not an Airline Specific analyst but theyve cut capacity and theyve held the line. The stocks have done phenomenally. Of late theyve run into trouble, even as oil prices have decline. Thats something to which everybody should be paying attention. The weakness, the overriding theme is the weakness in transports is not exclusively about the rails. What do we look for, the biggest Earnings Report in the Technology World . Intel. Because of that guidance specifically. The cat is out of the bag as to weakness sure they said enterprise was fine. Going forward, the second half a lot of Companies Said expect a big second half. Its all going to come together in the second half. Intel is big enough, what they say about the second half will set the tone for the rest of the big tech reporters. Iron man, thank you so much. Yo have a lovely show coming up. We have sara eisen hosting. That will be great. That makes it pay per view. Sara eisen coming up on fast money, 5 00 eastern time. Earnings season shifts into full grier this week. Coming up next well round up all the big names you need to know about, whether these results could send mark tote new highs. Plus, weve heard so much about how you need at least a Million Dollars to retire. But coming up somebody here says youll actually need less than you think to retire on. Thats really good news. Youre watching cnbc first in business worldwide. Our world is continuously transformed by the innovation of business, but at pwc we believe that businesses can go beyond products or services to have a measurable impact. As a professional services firm, we recognize the role pwc can play in helping build the Financial Capabilities of the next generation. Our commitment to doing so, has helped our people make a difference, not only for our clients, but for our communities. Thats the responsibility of business, and one way pwc is making a better tomorrow. Earnings season gaining speed this week with a bunch of big names reporting. Dominic chu, who else. Hes back with a preview. Bill michelle were not cooking with gas just yet. Were getting close. 33 companies in the s p 500 are slated to report their earnings this week. Before the bell and after. Here are some of the names youll want to watch just because they are names that are of note and or very large companies. Monday, pep boys jpmorgan wells fargo and csx, the Railroad Company also reports on tuesday after the bell. On wednesday, you have another one of those big bangs, bank of america reporting theirs. Across the pond a luxury brand, burberry. Also on wednesday, netflix after the bell. Could be a volatile Earnings Report. Citigroup on Goldman Sachs and American Express are all on thursday as well as Oil Services Company schlumberger. The big ones will be before the bell on friday, General Electric and honeywell. General electric very much in focus on the big news of their 50 billion Share Buy Back also the restructuring of ge capital and what not. Very interesting to see whats going on especially for the after the bell earnings. Netflix, schlumberger, among the ones still reporting after the close throughout the week. If it was not for jeanclaude trichet mario monti. I apologize, mr. Trichet. What should we expect from the numbers coming out tomorrow . Joining us now is nick race and lindsay bell. Nick, going to start with you. The expectations are pretty well. Can it get any worse . It could always get worse. We think the First Quarter expectations at minus 3 are too low. Our theme for this earnings season will be the First Quarter numbers will turn out better than feared. Thats the good news. The bad news is the Second Quarter estimates are low and will be heading lower as companies report. Lindsay, we highlighted there, jpmorgan and wells fargo tomorrow, what are you expecting from the Financial Sector overall . Well, this weeks going to be all about the financials. Were expecting double digit growth, 10. 8 for the First Quarter. Their leading growth for the Third Quarter. We need to see these guys post really good results. It will be if unto watch those guys. Bank of america, theyre going to drive growth significantly for the sector. Just because they have easy yearoveryear comparisons. We have to watch those guys closely. Excludeing them jpmorgan and citi, all benefiting from trading in the First Quarter. The rest of the banks are going to probably post yearoveryear decline. So its going to be something we have our eye on for sure. Nick when we talk about earnings for the banks being at the very top of the Financial Sector i mean gosh you have to go back to the financial crisis and think finally theyve come around here. Is it enough for the overall sector and is it enough for the overall market . Historically weve talked about the financials being the Leadership Group and we need them to lead in order to get the market to move higher. Are they the same financials they used to be . Do they have the same power . We always say theres three pillars to the economy to be in place for the economy to roll without the need for fed life support. One of those would be a healthy banking system. The other two being jobs and housing. All three things are working, things are going well. We do need financials to do better. During the Fourth Quarter, the banks reported lousy numbers, out of all ten sectors in the s p, over the past year the only one thats shown modest improvement and underlying expectations has been the Financial Sector. Some of that is because of the anticipation of higher rates to come and to help many of the spreadbase lenders. Lindsay, the last couple of days and certainly in the last two weeks, earnings for all ten sectors have gotten worse. Is there something going on that the average investor might be missing here that goes beyond the specific issues in energy that i highlighted earlier . I think you have the issues that have been laid out and discussed for the past few weeks now. As we approach the heart of earnings season you continue to see estimates come down. This is standard practice. Weve seen numbers come down from Earnings Growth of 5. 6 which was expected on january 1st to now a negative 3. 2 growth rate. Touchically company ically typically Companies Beat by three points. If you do xplud energy currently we expect growth to be more like 5. 7 . If that beats by the 300 to 350 basis points you can get close to 8 9 growth. Thats pretty solid in a recovering economy. Right. Jon fortts been watching intel. Either of you, lindsay or nick i mean thats obviously a bellwether in this technology field. It will give us a sense of how the rest of the industry will go. Anybody have a sense of which way intel will go here . Nick . Intel and many of the other semicon dishgts skonconductors are seeing weakening trends. Its losing positive momentum theyve had over the past year or two. Thats a reflection on intel and other semiconductors. The numbers for the s p were 5 at the beginning of the year down to minus 3 . If you go back further, the s p in september of last year this very earnings season was expected to be up 10. 5 on september 1st. We hear one thing about a bullish argument with stocks right now and theres two parts to that argument. One is that the First Quarter estimates are too low and stock prices will go higher. We agree with the first part that the First Quarter estimates are too low. We do not think the stock prices go higher. All right. Well see. Somebody hear disagrees but were out of time. Sorry, dan. Well get to that later. Thanks for that happy conversation on earnings, both of you. So how much do you really need to save for retirement . If you think you need to save millions, think again. Why you actually need much less than what many people say. That has our Sharon Epperson very skeptical. Still to come elon musks spacex just minutes away from launch. This is bringing an apparently much needed espresso machine to the italian astronaut on board there. Thats for real. Shes been drinking instant coffee all this time. I dont blame her. This rocket is also doing something thats never been done before, or at least theyll try to do that. That story and a live launch still to come in a few minutes here on the closing bell. Rozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Doug. Youve been staring at that for awhile, huh . Listen, Td Ameritrade has former floor traders to help walk you through that complex trade. So youll be confident enough to do what you want. Ill pull up their number. Blammo. Lets get those guys on the horn. Oooo looks like it is time to upgrade your phone, douglass. For all the confidence you need. Td ameritrade. You got this. 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Tdd 18003452550 or visit schwab. Com trading. Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550 seven out of ten Power Outages in the us are caused by weather. But utilities can now predict where the power will go out, within a few city blocks. Working with ibm theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. Ibm analytics from the internet of things is making energy smarter every day. All right. We have dominic chu back with a quick market flash. A warning here yes . A warning on a rail company that hasnt even reported earnings yet, norfolk southern. Right now the shares are down 4 on 14,000 to 15,000 shares of aftermarket volume. This after the company says it expects to report earnings per share of a dollar. Thats, again, sa 15 below the same time in 2014. Revenues are expected to come in at 2. 6 billion. The company does blame the shortfall in earnings per share on decreases in revenue within coal volumes, especially also lower revenues in terms of commodity groups, lower overall expenses were hurt by weather and Service Recovery costs. Earnings per share coming in below analyst estimates, a preannouncement, if you will. The shares are down by 4 on 14,000 shares of volume after market bill. Back over to you guys. We were just talking about that last block. Yes, we are. The price of energy. Well do it again tomorrow. Well have more info on the health of the railroads. Well be talking to csx ceo michael ward immediately after his Company Reports earnings. Today is the start of National Retirement planning week. A new report is sending warning signs about how unprepared many baby boomers are even though they think they are. Sharon epperson, tell us about it. Many baby boomers may be worse off than in recent years. 40 3rers have no savings, 21 have less than 100,000 in Retirement Savings and 19 have saved 250,000 for more. This is the latest data from an annual report by a trade group for the retirement industry. One of the biggest changes in the past few years, boomers who in this study range from 52 to 68 arent planning to rely as much on their iras or 401 k s. Half will turn to Social Security as a major source of income. Many boomers expect to live a lifestyle beyond what their limited resources will be able to support. 32 in the study still believe they will have enough money for basic needs, and have money left over for travel and leisure. Many boomers have postponed plans to retire. For obvious reasons. Well talk to someone who says theres no reason to actually panic about the amount you have saved for retirement right now. Hes published a column suggesting you may need less money to retire than you think. He is also the author a book. Good to have you here. You have a different column. Theres all this panic about not having enough money to retire. One of the pieces of conventional wisdom is you need 80 of preretirement income in order to retire. Thats a discourageing number for retirees. I cant possibly save that much. Theres no way ill ever be able to retire. A lot of people can get by on less than 80 of their preretirement income. Why . The kids leave home. Thats a big drop in your costs. Two, a lot of people get their mortgage paid off by the time they retire. Thats another cost they dont have. Finally, people are saving more than 10 of their income in the runup to retirement. Consequent, they arent saving that money once they retire, therefore, thats income they done need. A lot of those folks are the ones doing the right thing. What about those who may not be able to afford to pay off their home or move someone thats a lower cost of living and also those in poor health . Those health care costs, thats the wild card. Those are all good points sharon. When you think about people who are saving for retirement and saying do i have enough money to quit the work force, the fact is they dont need to hit that 80 target if theyre closer to 60 of their retirement income. Were talking two different groups here. Youre talking about people who dont have enough and havent bothered to save. At all. Jonathan youre talking about people who are overdoing it and fearing they arent going to have enough when they do retire. If youre saving more than 10 of your income every year theres a big chunk of your current income that youre not going to have to have once you retire. If youre a good saver, you can live on a lot less once you quit the work force. I have to go. I have time for one question. John . How many people do you think are saving that much though . There are these wild cards. You dont know how long youre going to live. You have to assume youll hit 100. Plus, you dont know how much of the federal funds you paid into are going to be there for you when you retire. Dont you have to still oversave . Quickly, john. Its better to have too much than too little. The fact is whatever you have youll spend in retirement. Moyer is more is better. Why hang around in the work force if you dont really need to. The spacex launch is coming up. Time now for a cnbc news update with sue herrera. Saudi forces continue hitting rebel positions in yemen with heavy artillery. A spokesman for the rebels said their response to the air strikes would be quote, strong and decisive and crushing end quote. He claimed that 2,500 civilians have been killed by those air strikes. Hundreds of hardline iranian students staged a demonstration in front of the Saudi Arabian embassy in tehran condemning the saudiled air strikes in yemen. Saudi arabia accused iran of supporting rebels against the government in yemen. Josh earnest says Hillary Clinton will not automatically enjoy the president s backing to be the democratic president ial nominee. He said it is up to the democratic voters to pick the nominee. And Daredevil Nik Wallenda has announced his next stunt at a news conference. He will walk untethered on top of a 400foot observation wheel in orlando next month. Its in the heart of orls tourist district and officially opens in may. And that is the cnbc news update for this hour. Back to you, bill. I guess hes run out of canyons to walk across. Apparently so. The 2016 president ial candidate field is getting bigger by the day, as you know. Hillary clinton is already jumped in and republican senator marco rubio is launching his bid in just about an hour. Coming up well have a live report from where rubio is making at announcement. Also speak to a top fundraiser for Hillary Clinton. Also ahead we get the music. Had to wait for that. A launch is Just Moments Away from spacexs rocket. The final countdown it is not the final countdown. Murphys law. While we were in commercial they scrubbed the launch of the spacex rocket that was supposed to be taking the payload up to the International Space station. Apparently weather got in the way. Its still significant. We should talk about it. Well bring in jane wells. Theyre trying to do something that hasnt been done before recycle the rocket boosters. Elon musk at it again, jane. He said even if they launched today there was less than 50 chance he would succeed. There was a storm cell that moved within ten nautical miles of the launch pad. That was the reason for the abort. Were trying to find out when the next launch will dough will be. This is why this is such a big deal. If spacex can recover a rocket reuse a rocket that significantly drives down the cost of launches. Elon musk said imagine if you had to throw an airplane after every flight no one would ever fly. After the rocket would launch a few minutes later, the first booster would fall away and then if all went well the rocket would be guided to a floating barge in the atlantic where it would be rided and land. When this happens, it will be spacexs second attempt. If its first attempt in january, the rockets guiding fins ran out of hydraulic fluid. That is not supposed to happen this time. There should be plenty of rocket fluid. The next launch window is tomorrow at 4 10. Theres a less than 50 chance it will succeed but an 80 chance it will succeed by the end of the year. Theyre going to keep trying. We wouldnt know right away even if it launches if spacex succeeds or not. Nass is wont be monitoring that part of the mission. Once that lower stage falls away, nasa is like goodbye we dont care about you anymore. It follows what happens with the upper stage and the spacecraft bringing cargo to the space station, including an espressomaker. As this is happening, what could be an historic attempt to recover a rocket spacexs main rival, the united launch alliance, is announcing in colorado at the space symposium its own plans for its own reusable rocket. This is the huge new stage in rocket science. But you have to get off the grounded to recover a rocket. Well see if that happens tomorrow at 4 10. Its happening in the private sector rather than in the Public Sector like it used to happen with nasa. Exactly. Just to make it official elon musk two minutes ago tweeted out, launch postponed due to lightning from an approaching anvil cloud. There you have that. You feel bad for the italian astronaut who cant get her coffee. Jane, this was the important part. You know reusable rocket launchers, thats fine but the espressomaker they were setting up for the italian astronaut up there, shes been drinking instant coffee all this time. I cant imagine what shes going through. They will be connected with bungee cords inside and coming in a closeable pouch and apparently they are stocking enough coffee thats the plan for a crew of six to have two cups of coffee a day. I would have 12 cups of coffee all by myself and forget the rest of you. Im not surprised. Jane wells, thank you. Always great. Were waiting for more tweets from elon musk. See if he can tell us when theyre going to launch the next time. All right. Thanks, jane. Thats a shame. For Hillary Clinton, the waiting is officially over. The former secretary of state jumping into the 2016 president ial race officially sunday. We were all surprised. Coming up well talk to a Clinton Fund Raiser to get a gauge on the money behind her campaign. Am i made of paper because i tear so easily it begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. From the smallest detail to the boldest leap. Healthier means using wellness to keep away illness. Knowing a prescription is way more than the pills. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. Realizing cold hard data can inspire warmth and compassion. And that when Technology Meets expertise. Everything is possible. For as long as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Is there such a thing as a sure thing in business . Some say buy gold. Others say buy soybeans. I say, buy comcast business internet. Unlike internet providers that slow down when traffic picks up, you get speed you can rely on. Its a safe bet. Like a goldplated soybean. Reliably fast internet starts at 69. 95 a month. Comcast business. Built for business. The 2016 president ial field is less than an hour away from officially getting more crowded. Nbcs casey hunt is in miami where florida senatormark marco rubio is about to get into the race. We expect him to make at announcement that hes running for president in the next hour or so. Here at the freedom tower, known as the ellis island of the south. Its where many cuban immigrants received help. Rubios also going to face hometown heat from jeb bush whos actually been his longtime friend and mentor. Bush has obviously built this juggernaut of a campaign. The question for rubio will be whether or not hell be able to raise the kind of money hell need to compete. The nbc poll does show rubio is the second choice for many republicans. He has a lot of room to grow. Ive also talked to donors who say hes been very impressive behind closed doors. I think today youll hear from him a message about being the fresh face for both the Republican Party and the country. One that stands up very well they say, to Hillary Clinton who of course is headed to iowa on that road trip after announcing her president ial roadbid on sunned. The other story, Hillary Clinton did throw her hat into the ring yesterday via video and social media. Lets bring in tracey. Shes a Senior Adviser for the ready for hillary Political Action committee. Good for you for being here thanks tracey. Thank you. What kind of message are we going to hear from hillary thats different this time around compared to the first time she ran . Well shes certainly making it clear that shes running as a champion for american families. Every day americans, people who are looking how to get by get ahead, stay ahead. Thats what shes going to be making her central theme. Its about every day americans. Do you feel shes been dragged to the left at all by the party more so than she would have been otherwise by people like Elizabeth Warren . Its great what shes doing to launch this campaign by going to iowa and other states. Shell talk to people. Have small conversations, small settings. Shell be asking questions, listening, getting questions asked of her. I think its only after that process that we can really fairly answer a question like that. Tracy, what does she have to do differently this time . She ran eight years ago. The video she put out, it didnt seem to be one or two people under 60 in the video if you dont include her. What does she have to do differently this time to capture that portion of the Democratic Base that got away from her and went to obama eight years ago . Well, i know shes going to fight for every single vote. This is not any sort of circumstance where shes going to take anything or anyone for granted. And whether that means youre over 60 or under 60 thats a vote shes going to fight to earn. Didnt she do that six years ago . Thats very clear. She fought for votes last time, didnt she . A lot is different. The world has changed in dramatic ways and it seems shes grown as a candidate and as a leader. Her experience as secretary of state is bolstering all she brings to the table. And, again, going back to what shes doing now. A lot of people think that will be used against her, benghazi will be used against her, particularly her role of secretary of state will actually be a negative. Im sure for her opponents, theres going to be a myriad of things to go through her record and pick at. Hillary is making it clear that her candidacy is about every day americans and fighting for those people. You mentioned that at the beginning. Tracy, i dont think you can see me. Im on the younger side of things. What do you say to people 40 and under, 35 and under and certainly 30 and under that think that the to put this as not as derogatory as i mean it the best the country can do is another clinton and another bush . Does the campaign have an answer for that concern . Again, hillary, as we know and as ive said a couple of times now, shell fight for every day americans. Her last name is not what matters. Its about those families shell be meeting with and talking to and hearing their concerns. I think that transcends any surname. What is an every day american . Well its probably not you. Its probably not a lot of people in the sort of d. C. new york world. I hope that its people like in my home state of iowa people who dont follow this minute by minute but have serious concerns about their bank accounts. She doesnt care about the northeast voting for her . Thats not at all what i said. Not at all what i said. Not at all what i said. You said im not an every day american. Shes not going to fight for me is what youre saying. Every day americans are a big coalition. Are you disappointed the president is not endorsing hillary at this point . I believe president obama has said that Hillary Clinton would make a fine president. But hes not endorsing her. She hadnt announced her candidacy and he said that just a few days ago. Are you relieved bill de blasio isnt at this point . I think the mayer is absolutely in the category of people for whom she will earn his vote. And im confident that she will. Theyre old friends, thats not the question. Yes, im surprised he didnt come out right away. I know that she will fight for the mayors vote. All right. Tracy, thank you. Appreciate it. Tracy sefl joining us from hillarys Political Action committee. A lot more active today at an activist Investor Conference than the organizers are bargained for. Protesters demanding higher wages for workers at restaurants like olive garden and mcdonalds, they invaded this conference in manhattan today. That story lit up todays hot list. Well have details on that and still to come, train. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. Opec taking aim at nonmember countries. Im showing you the major averages and how they closed today. Protesters are active at an activists summit. This is on cnbcs hot list. Adam wasler joins us with the details. It was oil, act viflivism and food. Opec came out with a bulletin this morning saying here we are, being nice and stable keeping regular production levels in some nonopec countries. Okay, thats u. S. And canada just go in and start charging and everything like that. The fun part about this story and the writeup is all the comments underneath of all our readers saying, hey, opec welcome to capitalism okay . Thats one. Another one, you dont see this at an Investor Conference all that often. The 13b monitor active passive Investor Conference got hit with a protest. A bunch of people walking in Holding Signs saying hedge fund billionaires, pay your fair share. Okay. They were taking aim at some of the guys there that tend to invest in fast food outfits and protesting the minimum wage level. They wanted 15. We got video and readers have been watching that. Finally, we have fast food wars getting ugly in pennsylvania. Mcdonalds restaurants, a few of them, are offering a free egg mcmuffin with anyone who comes in with a taco bell breakfast receipt. It shows you breakfast is the new battle ground. Breakfast sales went up 7 lunch and dinner 3 . Thats where the fast food guys tend to be aiming. Theyre gettinghere too, this time. Kelly will be back on thursday. Im sorry. Thats okay allen. You didnt get the memo. I cant see. Who is going to win the fast food wars here at breakfast . Are you looking at any of these companies that are invading each others spaces here dan . No. Listen i think the restaurants in general have major issues facing them. I will say theres colorly breakfast aside theres clearly winners and losers. When you look at some of the major companies, theyve had trouble reorganizing themselves. Other companies that are a little smaller are growing very fast. Gee, which one is he talking about . Theres such brand creep. Everybody is getting into the breakfast mode. Everybody has coffee and the specialty drinks salads. Im not a real american so i dont really count but anytime i eat a fast food breakfast i fail is how i feel. So i think nobody really wins. What are you talking about . An egg white mcmuffin. Its under 300 calories. And now you can get it for free. Its microwaved and covered in salt. If i have to eat an egg white mcmuffin, im not going to be happy. I need some yolk. Real americans eat mcdonalds. Youre right, they do. I dont know they eat mcdonalds and they vote and caucus. All right. Thanks allen. Good to have you on. Oh brother. You know them from their hits like drops of jupiter and hey soul sister, coming up next Patrick Moynahan from the rock band train will be joining us outside the New York Stock Exchange. He has a Business Venture hell tell you about. It took tennis legend serena williams, fencing champion Tim Morehouse and the rockettes years to master their craft. But only moments to master paying bills at chase. Com. Depositing checks at the atm and transferring funds on the mobile app. Technology designed for you. So you can easily master the way you bank. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. O0 flashback to 1998 and you and i were hosting power lunch at that time here on cnbc and our executive producer came to us and said she just heard this song on the radio and she wanted to get the band on the show it was called meet virginia and it was the first time on cnbc we ever had a musical act on cnbc and ever since drops of jupiter. We like to say were the reason train went where they did. Were the reason you went there you go. Pat monahan, the lead singer and the brains many say behind train is joining us outside the stock exchange. Thanks. Its exciting to be around such classy people. Real people. You dont know me that well. Well at least people who wear tie approximates. Youre going on tour for bulletproof picasso. May 23rd Matt Nathanson and the fray. Very hot band. 45 cities around america and its really exciting. Is that the only choice you have these days you have to tour aloss . Because when i look at the breakdown of revenues in the Music Industry cds get smaller and smaller and touring gets to be this part of the revenue. It can be and there was a time where Record Companies saw the writing on the wall so they started to make different deals. They called them 360 deals, so they would be included in your tshirt sales, ticket sales, and your record sales because record sales started to become third most popular, and we werent part of that because we came in early, as you said. We were back in 1946. Yes. Isnt that the biggest change you have seen since we were last together in 1998 . I mean the way music is distributed is the the internet really didnt exist when we came in. It was television and radio. That was the way to get and now kids find new music and listen to old music on youtube. So even though radio and television are still strong youtube is becoming king and so is the internet. Pat, spotify just raised a bunch of new money. Taylor swift has come out saying the freemium version isnt sustainable. Where do you fall on that debate . Im told title came out with a more expensive version of spotify and it sounds like something im probably not going to get to be honest. Like why would i want to pay more to get the same product . I dont really know the answers to all of it. I mostly feel like my heart goes out to young kids that are going to try to make it in the music business because they have to figure out a new way to get people to care about them enough to make im going to disagree with you there because i think whether its spotify or pandora, youtube, whatever it is has given a voice to younger artist that is before had found it nearly impossible if not Justin Bieber was a youtube star. But theres too many avenues to get music and not enough tastemakers. So its confusing. Theres so much to do you almost go im going to listen to that james taylor radio from 30 years ago. We need taste makers play lists, people to tell you what to listen to. Thats what were trying to learn who to trust. You made a comment one time and it made you sad but now youre kind of happy about it. People may not know train but they know your songs, right . You know after all this time. It was disappointing in the beginning because you want to be like Michael Jackson famous and you realize what a hassle that is. I get to say Grocery Shopping with my kids. I also disagree with you there. I have a habit of disagreeing. Hes a big fan of yours. I think now youre a globally recognized if not for your face for being the lead singer but train is in a different category now. Train is maybe more recognizable but still we still run across oh man, im gog see a train concert and many people are like i dont know train, and then they say drops of jupiter, hey soul sister, oh i love that. I mentioned to them before my wife and i, our first dance was a train song gate toet to me. The bad news is my lawyer is going to be asking you for some publishing money for this. I have awesome lawyers. All right. I take that back. Tell us about the tour this summer. It starts on may 23rd, goes to the end of july and its a big tour. Its already very successful. Were super excited that after 20 years we still get to play in front of tens of thousands of people. Do you get tired though . How long can you keep touring . I keep saying to myself because i have to i look really good. There you go. I dont really know the answer to that but as long as its fun. Great to see you, pat. Great to be here. Were glad it worked out for train. Those young guys we saw all those years ago. If you ever need a replacement, im very not interested. If you need a replacement, im a really good guitar player. Pat monahan from train. We have sara eisen coming up with fast money. Take it away sara. Fast money starts right now. Live from the Nasdaq Market site overlooking new yorks times square im sara eisen in for melissa lee. Our traders are Pete Najarian brian kelly, and guy adami. Netflix popping on talks of a looming stock split. Is it too late to get into the high flying streaming play. And Jordan Spieth being called under armours hero. Under armours shares soaring today. Will spieth kick off another run for the stock