grant, coming up get their way on the economy and what the fed will do about it. >> a lot of hot earnings stories keeping us busy as well. gopro up almost 13% on the news that the company is breaking into the reality space and the debate on whether it's too late to buy the stock. >> if you were with us yesterday, it was in this hour that twitter's earnings were inadvertently released an hour early, causing quite a frenzy here on the floor of the new york stock exchange. good old price discovery by human beings on the floor. there it was. glenn getting the stock open again. it sank at that time and it's sinking again today big time. how do you make sure something like that early earnings release doesn't happen again? one of our guests has a few ideas on that coming up. >> digesting all of this news the dow is down about 46 points or a quarter of 1%. about the same magnitude for the s&p, giving up 4 to 2,110. the nasdaq off 17 points 5,038 is the level there. we'll have a quick look as well as some of the other moves that have been driving this market today. >> the dollar index, has been the one driving. the ten-year above 2%, the dollar index and crude. we have a breaking story right now in the meantime. >> let's get much more on the salesforce.com story. bob pisani. >> here it is. there was a big crowd here a little while ago. crm, customer relationship management. quite until a half hour ago. there was a volatility halt not a news pending halt. stock re-opened. was 66 at the open. it got as high as 78. it's on 75 on enormous volume. salesforce will do about 3 million shares a day. we're at 11 million, just about to hit 12 million. we're four times the normal volume it's hit right now. who might potential buyers be? remember, this is all just a story. there's no confirmation of this at all. judging by the trading action oracle there's been significant volume in oracle in the last few minutes. the magnitude of order is bigger probably close to 200 billion market cap, crm probably 45, $46 billion in market cap. a huge difference there. we saw a little bit of volume in sap, a little bit of volume in google. not quite as much as the move up we saw in oracle. right now, up 12%. >> bob, this is such a fascinating story because we've seen the mega deals already. we're talking after this move of at least a $50 billion deal. this would be for sales force. it's as much a story about what's happening across that space in the cloud business as it is about how much markets, the financial markets, capital markets are open for this kind of mega business. >> bob went away. what i find interesting also let's state the obvious. mark benoff was on with cramer last night. >> he was. >> no behind of any of that. something was brewing at that time that we didn't know about. something to keep an eye on. >> let's bring in semad with fbr. your reaction to this deal, does it surprise you? >> it doesn't surprise us. oracle has been trying to establish itself as a legitimate leader in the cloud. who better to go after than salesforce.com. the company that pioneered the cloud. they've been driving innovation. application vendorses like workday or salesforce other innovative companies are attacking them from all sides. what better way to establish yourself as the leader in the cloud by acquiring the top company in that space and bringing over a very talented group of people at the leadership level and sales and technology as well. >> why are you so convinced this is oracle? >> if you think about it from a technology standpoint salesforce.com was built using the oracle data base, you have strong ties with both companies. heath block is a former oracle executive as well. as you look at the organization they make a lot of sense for each other. on top of that we think as far as resources go oracle is a company best positioned to be able to make this size of acquisition and digest it. >> put your investment banker hat on. it's trading a shade under $49 what is salesforce worth right now, do you think? what kind of premium would you assibuyout? >> you've seen valuations go as high as eight, nine times forward revenue. for a company like salesforce it would be challenging to go that high. we wouldn't be surprised how desperate oh,le is to succeed in the cloud and salesforce given the premium associated with the name and bran they've established, we could see them paying a handsome premium to today's prices as much as eight, nine times revenue if they have to just to make sure they don't lose out in the cloud wars that we only see heating up and getting bigger going forward. even at $75, we're still buyers of salesforce. >> what price would you assign to that then? >> 75 today. we're still buyers. you think for oracle to come in and buy it they'd to have give a 20% to 25% premium on today's price. >> yes. >> samad, thank you. stand by now. we'll get more from josh lipton on this one. can you tell us? >> i'm at a microsoft developer conference here in san francisco. i'm seeing the same reports you are. that's what we have right now. the reports, this has been long rumored on the street, long talked about amongst financial analysts. samad's colleague, i talked to dan about this he think it's possible he agrees with samad that oracle would be the one that has the size and distribution to do a deal like that. they have a crm business. as dan points out it's relatively small. a deal like that would also be a a mazing just for the kind of personality involved with ellison and benoff certainly a colorful history between those two who often goes after each other when it comes to the cloud. it was on salesforce's last earnings call i remember benoff poking fun at oracle's cloud business. saying listen it's easy to talk about these incredible growth rates when you're starting from zero. a colorful history between these two. you talk to financial analysts who cover oracle and salesforce they don't think the reports are in any way out of the question kelly. >> i'm glad you mentioned colorful history, if you will. this is an interesting part of this story and why it's surprising in a way that it would be like this. >> who knows, maybe we'll hear something before this hour is out or maybe at 4:00 eastern time there will be some announcement. the market will force their hand maybe. let's go on get to our "closing bell" exchange for this fed announcement day. keith fitz-gerald from moneymorning.com. jack rougen from index financial partners dorothy weaver from collins capital joins us today. also the former chair of the federal reserve bank of miami's atlantic branch she is. steve liesman and rick santelli. rick -- steve, i want to start with you. hits runs and errors from what you heard from the fed today. >> clearly they're dealing with a weaker economy. >> they downgraded the economy. they called most of that downgrade transitory. they took out that reference to -- it's the first time since i believe since '09 that there has been a calendar reference. just for those who are fed trivia they put together over calling the fed's guidance graveyard. it began with sap. this was crossed out. they went to considerable time that's gone. patient was gone. it's all crossed out. there's no more calendar guidance. we're now data dependent. what that means is that june is potentially on the table. any month is on the table potentially if the data supports it. there's no promise or guidance as to staying for the quarter. that's the big highlight. >> what do you do with this market? >> i think we buy the dips. this is no different than what we saw last year. we saw this movie. it's called "2014." we saw the disappointing numbers in q1 and it was followed by an explosion of growth in the second and third quarters. i can see a lot of that haing. unfortunately what we have right now are still a lot of nonbelievers out there that are looking at the fed, scratching their head and wondering when they're going to make the move. when they make the move it's going to be a good thing. it's going to be disruptive. we'll see what happens and the footprint we're seeing right now by the way, there was a huge trade that took place in fixed income. i know rick will talk about that which has affected the entire day. much of it was dollar related, end of the month related as well. i think may will be a surprising month for a lot of people. >> you led me to my next question. it goes to rick. the fed statement actually came into an interesting market day already. the continental european markets down hard a lot of movement in the fixed income arena there. the dollar has been down sharply today. the euro is back to 1.11 at this point. what do you make of what's going on today rick? >> i think mario draghi is losing the war against trying to peg interest rates to some extent. that really doesn't surprise me. qe is rerunded all over the globe. in terms of the only thing i walk away with that's super important with fixed income it wasn't necessarily a big trade. it's how the market can't deal with big trades anymore. there's lots of liquidity issues. you know what in the age we live in i know the weather excuse is big. we can't let secretary of state monopolize james taylor. i think he summed up best what is going on with the fed winter, spring summer fall if growth is much too small, there may not be any tightening at all, yeah yeah you got the fed. >> everyone who was talking about this rebound like we saw last year even deutsche bank cut their second gdp forecast dorothy, to 2.5% from 4%. dorothy, let me ask you about that. what do you see out there? are we going to see as much of a rebound as we did? if we don't, what does that mean for the company. >> i don't think we'll necessarily see as much. the weather was absolutely dreadful. the economy is not just taking off. we're going to see it sluggish and a bit slow. we're not seeing money going into capex. capex numbers are disastrous. you're not seeing it now that the oil patch isn't putting money in. you have to get the consumer back out there. there are no huge drivers that are going to give it that sudden adrenaline rush. >> let me get keith in here. do you have a beach boys song you can add to this? what are you looking at here? >> i don't know. the key takeaway here is that old joke god invented economists to make weather forecasters look good. this time you have economists talking about the weather. the key takeaway is really they're data dependent. i want to see what they're going to do with the data. nothing is off the table. the key for me is does the pace of the hike go. sure there will be volatility but that's not necessarily a bad thing. >> last word to you, steve. very quickly. >> i think kelly has the right idea. what has to happen now for all investors, fed watchers and anybody else who's not included in those two groups is to start creating forecasts and rate hike probabilities around them. i'll give you a couple. if we do 200, 250,000 k job increases for the next month, june will be back on the table. if you're on track for the second quarter at 2.5% probably not a rate june hike. maybe more like september. 2.5 is good enough to give you a september rate hike. if you start looking at five the bounce back like last year it put june back on the table. now it's data versus fed rate hike probability. that's the new game in town. >> not timing as much as capex one they get started. that will be much more important. >> i wish i had much more time. thank you all for your thoughts on the fed today. >> appreciate it. >> >> hewe have 45 minutes to go in this trading session. now it looks like it did before the fed statement was released. the dow is down 70 points thes that down down 25. >> more reaction to the fed and when it may pull the trigger on interest rates. we have rick riede rext standing by on the floor and later, james grant of the widely followed newsletter bearing his name. you won't see them anywhere else on tv today. that coming up. and jack and suzy welch questioning the value of an mba, why it may not be worth the six-figure cost. >> jim cramer just talked to jack benoff last night. what up with that? we'll talk about it when we come back. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. the reason my company's successful is because i'm focused on my stakeholders not my shareholders. that's the stakeholders theory. the theory is you have a lot of important stakeholders that are important for your company, your employees, your customers, your partners, the community around you. the people who live here in san francisco, for example the environment. to really think and be successful you need to think in a multistakeholders framework. >> that was salesforce ceo marc benioff talking to "mad money's" jim cramer last night. >> the stock soaring on this report. the company has been approached by a potential acquirer. jim is back with us now from our brand new san francisco bureau there. first of all, did you get any hint from marc last night about this? and what do you make of this development today. >> i just got the confidence, we don't comment on rumors or speculation. that's all we're going to say. i just got that a minute ago. >> the talk is oracle may be the one. what do you think and why sell now? >> oracle does a big bond deal so people may speculate they're going to use it. the amount of money they raise versus how much it would cost salesforce, that would be highly unlikely they'd put that money to it. marc benioff tweeting from microsoft where they had a meeting in san francisco, $400 billion company. someone could easily say, wait a second oracle does a bond deal. maybe that's about buying salesforce. i have to tell you, i was thinking there was no comment. i had marc on last night and i spent parts of the day with marc and last night at our cnbc party. i got no inkling anything was going on. but it would be secret and i wouldn't know it. the comment, we don't comment on rumors and speculation. to go beyond that would be rumor mongering myself which hasn't been my style. >> marc is salesforce, this company has completely transformed and dominated the crm space as we call it for the last 10 15 years. i'm interested now, they've made a bunch of acquisitions how much do you think there's still a vision for salesforce to march boldly and bravely into the future? they're doing the apple watch and all of these things or is it time for them to roll up the business into a much bigger internet or computer name? >> i don't know. i spent yesterday at their headquarters looking at the mock-up of the building that he's building. to me i wouldn't be building a 64 building if i was selling the company. we visited the benioff children's hospital and got to see the good works he's doing there. i know that's very very important to mark and to lynn his wife. these are great things he does. there was no inkling that at the moment he was also trying to sell his company to oracle. >> sure. >> or to microsoft or anybody else. now, they are vicious competitors with oracle. vicious. if you go to the last conference of oracle you saw ellison on the call basically say several times they are out to get -- they are just straight out to get salesforce. microsoft and salesforce have had very good relationships, simply since nadella got there. a very good relationship does not make for a takeover. >> it would be like nike taking over under armour. how does it make sense to you oracle if it is as suggested by some of the analysts we've been speaking with would now be the acquirer? is it because of mark herd or larry ellison is no longer the ceo? does it make sense to you? >> larry is still very involved. i will say this. marc has tremendous respect for all of kmeez companythese companies, including oracle. they do at it but they respect each other. marc has tremendous respect for what larry ellison has built. he has tremendous respect for how the company has created tremendous wealth. they were partners before. i have to tell you that again, i mean where marc is in his life, i don't want to speculate, i think he loves salesforce and it would be -- it would be a bit of a shock if he was trying to sell the company. it would be a shock. >> understood. >> thanks for letting us know jim. as you know we don't comment on rumors and speculation is the line from salesforce. they're not saying anything beyond that. i don't think they'll say anything to anybody else, because i got it first. >> we love it. >> jim, thank you so much for joining us. >> jim cramer out there at one market. >> he'll have much more coming up on this story on "mad money" at 6:00 p.m. eastern time from out there in san francisco. where they're bulling this new headquarters for salesforce. >> new headquarters, again, a $50 billion or more deal if this happens on that bloomberg report. 35 minutes to go to the close here. the dows off the lows of the session, down 55 points at the moment. up next gopro soaring back but is the sports cameramaker a must-have for your portfolio? we'll have the pros hashing that out later. also coming up someone here says yesterday's twitter mess makes a solid case for keeping specialists, you know human beings on the floor here at the new york stock exchange. we'll talk about lessons learned on that. we also have rick reeder from blackrock coming up next to talk about the fed and the economy, right after this. welcome back. dow is down 72 points. the s&p is down 7. the nasdaq down 27. all of this on the back of the federal reserve's decision just about 90 minutes ago on interest rates. my next guest was predicting a rate hike this september. let's see if anything today has now made him change his mind. >> we welcome back rick rieder the managing director and chief investment officer on fixed income at blackrock. has it. >> i think the fed was balanced. you could read into it basically whatever you like. they talked about the fact that the economy slowed. they also talked about the trends and how household spending had slowed but that actual real income had picked up and sentiment was strong. the interesting thing which a lot of people were speculating, they took april off the table. whether they would take june off the table, they didn't. >> they didn't, no. >> i think, the bar for them to move in june while i think they can and should i think the bar to move in june is not there. september is the base. they will be data dependent. we'll see. >> the bond market has been reacting strangely to the mix of that and the gdp disappointment this morning. what do you think is going on? are we putting in lows here for interest rates in the near term? >> i think there are a couple things happening. one, there's a significant position squaring going on. the price in europe was curious to say the least. we talked about how much was moving, a tremendous amount of volume moving. their supply and pushbacks from european rates. you talk about this movement in rates. there's a lot of issuance coming into the marketplace, a lot of companies. part of why i think when people say there's no cost for waiting, it's actually not right. companies are issuing at levels that are pretty extreme and that's starting to push on rate a bit. we think rates will drift higher in anticipation of the fed and will get there before the fed does. >> some have said there may be a liquidity issue in the bond market now. what do you think? >> listen i think there's no doubt that it's harder to transact broadly in the marketplace. that being said, there's a couple reasons at play. one, everybody is focused on monetary policy like nothing i've ever seen before. the focus on what the fed will do. what happens is in market one, people are not convicted in what to do. this is part of what the fed will do. i think you'll see markets start to stabilize. liquidity is a function of uncertainly. >> we certainly have a lot of that right now. by the way, when the fed starts to raise rates, it's not like everything can move uniformly. is it possible we get one increase in interest rate or the 10 or the 30-year doesn't move a whole lot. what do you think of in terms of the speed, how this plays out. >> there's an unbelievable focus on the date they start. i think it's the pace and the destination that are more important. i think the base cases move in september. they move move 25 base points. maybe you wait a period and go another 25. i think they'll be deliberate and they're concerned about not hitting the back end of the curve, not seeing back end interest rates. the destination is lower as well. >> certainly they've sent themselves these metrics, the 2% inflation. have they painted themselves into a corner with that? we're slowing down here. >> if we don't hit those for a long time do they wait that much longer? you guys are chomping at the bit. >> i think they should go. markets and economies give you windows to move. we're at not only a 0% effective funds rate. i think they want to go and get off of that incredibly extreme number. yes, the data has to give you a window. we think the first quarter, i know there are comments about the weather. it was weather, california. there's a capex dynamic. there's a government spending dynamic. we think the second quarter will be better. it will give them a window to do it. >> are you wearing an apple watch, rick? >> i am. i have transitioned to the new apple watch. >> is this what you're feeling so bullish about. >> it gives you a good feeling. i can watch the stock market more carefully with my watch now. >> do you make payments with it. >> i have tried it and i do. >> you don't have a dark tattoo under there. >> not yet. >> you can tell your heart rate as well. >> true true still gets the heart rate. >> you have a plane to catch. rick rieder appreciate it very much. time now for a "cnbc news update" with sue herera. >> here's what's happening this hour. danish shipping company mersk says the crew of the container shipped seized by iranian authorities are safe and in good spirits. the u.s. navy said earlier today it has deployed a dryer and three patrol boats to the southern persian gulf. massive wildfires are getting dangerously close to the devastated chernobyl nuclear power station. ukraine's prime minister says firemen battling the blaze have made some progress. separately, the world's leading powers set a protective cover would be completed by november of 2017. protesters continued their anti-government demonstrations in burundi's capital. they are protesting the president's decision to run for a third term in office which critics say violates that country's constitution. the fda approved a drug to help combat double chin. the injectable drug helps melt away the fat that causes that condition. the drug should not be used on other portions of the body because it can kill skin cells which sounds very unpleasant. that's the "cnbc news update" for this hour. back to you. >> yes, it does sount unpleasant. thank you. the dow is down 56 points. they left the door open for rate hikes here in the near term. the jury is still on on whether we'll actually see them bill. >> i wonder what jim grant thinks about that? he will be here get his reaction. he loves the fed. when he sees that interest rate hike coming we'll talk about that, talk about the bond market, that weird trade going on in europe. we'll get all that. >> still following the twitter story, the name selling off again today after yesterday's revenue miss and earnings leak somebody here has a solution to make sure something like that leak doesn't happen again. we're back in two. ♪ we will rock you anthem ♪ ♪ ♪ ♪ ♪ call 1-800-royal caribbean or your travel agent today friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. 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[ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. here's a chart that got a lot of people's attention today. gopro up about 13% after it was announced purchasing the virtual reality software company color. it delivered strong guidance as well after the bell last night. >> now is it too late to get in on the stock? our guests join us. welcome to you both. michael gopro, do they still have room to run here? >> i think they do. the case is that they saturated the market they can't grow. that's the bear case. the bull case was proven out last night. demand is up providing for sequential increase in demand. we expect another product launch in the september quarter. i think they've just scratched the international community. they have a long way to run, at least another year and a half between the bears see any hits. >> jason, you have a different point of view. you have a whole different view of gopro, don't you? >> this is true. this is true. allow me to share my view here. i can actually directly combat so to speak the initial two bullish points there. first of all, the bear case is clearly not that the mark set saturated. that's not the bear case. i don't care if another 200 million people want cameras, that doesn't necessarily make gopro a buy and i'll tell you why, secondly the international market china's great. one month ago, 30 days ago, they came out with a gopro hero killer, they came out with a camera. they came out with a yi camera. the same specifications. you go on youtube. you see what the people are saying about the hero killer, you'll be surprised. gopro is a phenomenal company. it's kind of almost like a one-trick pony at this point. and you have striving competition. i think over the next few years it will be a much more level playing feel reducing pricing across all camera companies. >> this would seem to punch back again that. what else do you mention in the september product launch? >> i don't think it makes much difference as long as they refresh the product. you mention earlier in the program nike. these guys are nike and they are talking about skechers coming out with an athletic sneaker and taking share from nike. gopro isn't going to be threatened by the yi maybe in china, not in the west not in latin america, not in the u.s. i completely disagree. i think gopro has established quality. they've established a great brand. they have associated themselves with outdoor sports. >> jason? >> too much competition. there's way too much competition for gopro to continue its trajectory. therefore, when you pose the initial question to your viewers, is now too late to get in? absolutely absolutely, 110% there is. there's polaroid sony. countless other competitors will sprout up. it's a classic recipe for prices getting lower, which is not good for gopro. >> prices getting lower is what we witnessed throughout the entire ip revolution over the last however many years. >> this is trau. that is a good point. i completely agree with that. i will give you that point. gopro is relying on high margins right now. that's my counterpoint to that. >> pries do inevitably come down. >> thank you, gentlemen. >> there's a lot of gopros in drones. big market for them if you didn't know. it's not just people strapping it to their head and surfing. >> that's true. they're doing other things as well. we have 19 minutes left in the trading session. the dow is down 64 points. after a lot of volatility today, quieting down here as we head towards the close. coming up a man versus machine story. get a load of this. several american airlines flights were delayed because of a hiccup in an app used by pilots. our panel will have some fun with this one when we come right back. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. 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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. 24 hours ago this was the sight at the new york stock exchange. it was mayhem on the floor as twitter earnings were released unexpectedly early. shares were halted. by the time they re-opened they were down just below 20%. >> they are saying that a shareholder inadvertently exposed the company's release on twitter's investor relations website prematurely and that's how they were able to get their hands on it early. the stock was halted as we remember and tanked on the weak earnings report especially that guidance and is falling again today. >> take a look at this. it is down another 9%. 38 bucks and change. >> that was a $52 stock before the earnings report yesterday. >> massive hit. >> meantime twitter ceo dick costa will address the issue this morning on "squawk alley." >> the reason you outsource it to a third party, they have competencies in areas you don't have confidence in. we need to find out quickly whether it was us or the third party and then take action based on whatever we find. >> joining us we have mark lopresky. let me begin, mark with you, your essential point is this could all have been avoided if the people here on the floor were more involved? >> i do. >> 20 years ago it was a much different place. no one is better equipped to handle it than a specialist, and they should be applauded for doing a great job yesterday. there's not enough human involvement in the process and it's causing problems like this. >> what about that, bradley? this was an issue, sew-- solarty, this was in the bounds of regulations. should something change or do companies have to be more mindful of how they post things? >> i think it's not important to know, outsourcing to a third party is not an uncommon practice. larger companies like nike, nasdaq, it's not something unfamiliar to these larger companies. >> how do you prevent it from happening? >> the people. you have to be able to trust the people that will be coming into contact with your earnings. and do your best to avoid them coming into contact with anything that is not already publicly disclosed. you really don't want to let that out of your -- >> have you ever happened to ed toed to have this happen? >> this is not the only time it's happened in general. it happened with jpmorgan last quarter. it happened with disney intel, microsoft. it's really not unfamiliar. >> mark what would you advise every publicly traded company at this point? do they have to maintain their own operation, their investor relations, bring this in house? >> most of these companies work both with an in-house i.r. team as well as an outside professional. there's no question there's liability involved here. the fcc doesn't say, oh, it was your third party vendor that let this happen. you can take a pass. no. anything that's said on behalf of the public issue, there clearly need to be changes in procedures without any question. i'm curious to know though had that leak not occurred had the high frequency guys not had the chance to put the pressure on the stock they did before the close, would we be looking at this correction today? i don't think so. >> i'm so tight on time but the question i asked should there be limits placed on these data miners like a solarty? >> you know i don't -- >> how do we reconcile between you guys posting information before it's released to the public and these guys getting their hands on it before you've released? >> you enter a tough grey area there. it will be hard to control and say you can do this but you can't do this. the onus is on the security and the third party vendors. it's folks like s & l. >> some companies have gotten caught because they only would change one character every time they would update their release. i'm sure those practices are boeing looked at much more carefully. >> change your passwords more often. >> exactly. >> thank you. >> mark lopresti and bradley scott. thank you. >> $300 million, not a lot but we're seeing a move lower. the dow now down 72 points with ten minutes to go. after the bell we have jim grant. also, jack and suzy welch. we'll discuss if microsoft can turn something old new again. stay tuned. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? yes, another day, another flood of earnings on wall street. >> dominic chu rounding up the big movers and previewing the big names reporting after the bell. dom? >> it just keeps coming along this whole parade of earnings here. let's recap some of the earnings news from this morning. mastercard reported first quarter profits beat expectations thanks to increased card use worldwide. those shares flat on the day. shares of lumber liquidators after reporting a q1 loss of 29 cents a share. the justice department may be seeking criminal charges against it in relation to imported products. its cfo will step down in june. those shares down by 20%. and mondelez beat expectations this morning. profit helped by cost cutting and price increases. shares up by 5%. we're waiting for first quarter results from baidu. you can see they're back to flat on the day. we'll be watching for yelp. analysts expecting a 1% share profit for this online review and social media type company. other big earnings after the bell include vertex pharmaceutical and sam adams comes out today as well. back over to you guys. >> thank you, dom. see you later. heading to the close, six minutes left in the trading session with the dow now down 80 points. >> after the bell interest rate guru jim grant joining us to talk policy and the ten-year beyond yield. you're watching cnn, the first in business worldwide. take a deeeeep breath in. . . and . . . exhale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? 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[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ ♪ my mom works at ge. ♪ ♪ interesting day this was if you're a market watcher, just to see the gyrations and try to discern the message of the markets. this is a chart of today's action for the dollar index on the bottom and the s&p 500 index on the top. look how they tracked each other pretty closely today. the dollar very much an indicator of market action. a few minutes before it was actually happening today. as you know, the dollar was lower today. we got up to 1.11 against the euro. it was lower again the yen today as well around 1.19. the dollar the one everybody was keying on today. oil, as the dollar went lower where do you think oil went? it was higher on inventories that came out less than expected. we saw a rise in crude oil. it was up almost to $59 at one time today for wti, there it is up 2.5% today. finally, bob pisani the earnings coming out, it occurs to me if you've been asleep for ten years and you wake up and you see companies like yelp and baidu, what the heck are those? they are coming out with earnings along with boston beer. >> boston beer is understandable understandable. >> a report of some kind that maybe they're entertaining an offer from another company. >> normally there are 3 million shares a day. we're going to hit 30 million shares traded in salesforce.com. ten times the normal volume. the old trading rules, it doesn't matter whether the movement is right or wrong, you want to be on the right side of the trade. if you're in the momentum and you're moving and making money it doesn't matter if it's right or wrong. that's the logic. there's not going to be a great hike in june. the fed drastically held our hands on in that one we'll have to have big moves in nonfarm payroll. >> earnings coming up on the second hour of "closing bell" with kelly evans. i'll see you tomorrow. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. let's begin with how we're finishing up the day on wall street. looks like red arrows across the board. dow losing 75 points the s&p down 8, the nasdaq down 31 for a decline of 0.4% to 0.6%. let's bring in today's pan toll talk about what's happened with the fed today. we have big earnings movers to watch here as well. larry kudlow joins me here along with carol roth. "fast money" traders john najarian and steve grasso join us also. welcome, one and all. >> let me start with you, interesting moves. we talked about the stock market moving lower. bond yields are starting to move up. is this all about the fed? >> it might be. it's kind of a nonevent. i want to make a more optimistic spin on the lousy gdp numbers. when you have winners and whatever, let's look at a four-quarter change. when you do that real gdp is up 3%, it's not flat. when you look at consumption plus investment the basic heart of the economy, that's been drawing at 3.3% annually. the last several, three, four quarters. i'd like to see a 5% growth rate. i think we're actually moving towards a 3% growth rate. i love the fact that there is zero inflation. zero. zero. priced to go. i love it. >> carol, has he got you convinced? >> absolutely not. he's not had me convinced for probably a year now. if you look at the consumer the fact that they are not spending even though we've had this great sort of gas, almost quip of a tax decrease for the consumer they're not spending. we're not seeing the capital investment. we are seeing inventory buildup. if you took out of there, the gdp number would have been even worse than it was. i do not see this as a glass is half full type of scenario. i appreciate larry's optimism but i'm not there, kelly. >> dr. j., let me ask you. >> the market was about the strong dollar that all of a sudden wasn't. >> right. >> it tumbled. as it did in european markets. they were crushed. you look at the german dax, down almost 400 points today. huge drop. it's on the verge of making that 10% correction, kelly, that everybody would wait for here. every time it gets there, they all go running away. >> i need to know -- >> the sensitivity to the euro if that is what it reflects today at all, it's a bit troubling. there may be good reasons why the dollar is weaker and the euro is stronger. >> something weird is going on here. the stock market is saying the exact opposite. >> their version of a tapered tantrum of sorts. i was long put today. i sold out of those puts today. in fact i got short puts in the tlt. i'm looking for rates to pullback again ab especially after the verbiage in the fed statement. >> bond yields u.s., global -- >> u.s. yields i'm looking for them to go back down beneath 2. i'm looking for them to be back under 2% by this time next week. >> let me read a line here before we bring steve grasso into the conversation. traders trying to figure out why the u.s. dollar was falling. global risk appetite is improving as risk diminishes and inflation expectations bounce back and the fear trade is being unwound. that's the glass half full. it's the weird activity we've had today. let's bring in steve grasso for more, sir. what do you think is going on? is this an end of the quarter or end of the month, i should say, phenomenon? are there more people moving significantly out of fixed income? >> any of those scenarios that you just posed could be correct. there's been trades that are so deep so crowded, you've had the long value, the short euro. as john najarian was talking about, you have the trade happening there, you have the end of the month where you see anywhere projections from 4 billion to 8 billion coming out of equity. it could be any one of those top things. >> which would seem kind of encouraging if people are taking gains, nothing more than that. >> look we've had various doom and gloom scenarios. i argue against it. i sin to argue against it. i believe the fundamental underlying economy, not fabulous but there's no recession in sight. there's no inflation in sight. has the dollar peaked? it might have. has oil bottomed? it sure looks like it. >> it's at 40% off the lows. >> i understand. the forecast of $25 -- will the fed raise the target rate soon? no. they'll wait until september and i've said for go slow later rather than sooner. i'm begging for a corporate tax cut reform out of washington. i'll probably be wrong on that but i'm still begging for it. >> we're talking macro. i want to go microfor a second. the thing that stood out is the number of double digit movers to the upside and the downside. to think that investors are very, very sensitive to information, whether that be good news or bad news names like gopro, salesforce.com on the good side buffalo wild wings, wynn resorts on the negative side. double digit decrease for buffalo wild wings today. they're still trading at a p/e north of 30. >> twitter is an interesting one, too. today's price action is more interesting than yesterday's. if you get down 20% you have an earnings snafu, you miss on the numbers, fine. a lot of people might have jumped in on that and said they're an attractive acquisition prospect down the later. >> traded through the lows of the halt and restart yesterday that we had, i think that was 39.21 or thereabouts. we blew right through that by another 75 cents or so today. despite being up to perhaps 42 at one point today. that's pretty bad. there wasn't a lot of good on that call. nor was there a lot of excitement over what mr. costolo had to say on our air with carl quintanilla. the guidance going forward was all bad. i think people are going to see if they can pick this thing up at 35 bucks a share rather than 40. it's certainly tempting at these levels. at 38-ish it's tempting but it wasn't tempting at all at 42. >> is it a takeover candidate? >> i don't know who's out there that would buy that. >> steve? >> think about it. there's plenty of people who need that social angle. obviously the most -- the name that comes up the most is google. think about who else could use it. apple, don't jump down my throat. apple could use it yahoo! could use it. facebook might even try to use it and do something different with it. costolo has lost the confidence of investors. i'm long the name. i got longer today. >> hold that thought for just one moment. we have a big mover on a miss. yelp, shares trading down about 15% on this earnings report dom. what can you tell us? >> almost 500,000 shares have traded after-hours on that 15% down move so far. yelp reports earnings per share coming in at a loss of 2 cents a share, estimates were for a penny gain on earnings per share. also yelp revenues a narrow miss. $119 million. the expectation, the average analyst estimates were for $120 million. also just pull something more color here from the actual release itself. they do say that average monthly mobile unique viewers -- visitors rather grew by 29% year-over-year to approximately 79 million, average monthly desktop unique visitors declined 3% year-over-year to approximately 80 million viewers as well. also average monthly unique visitors both desktop and mobile web did grow together 8% to 142 million. local advertising account, that's been a focus of some analysts grew by 4% year-over-year. as a result, net on net, we'll go through the right. right now, down 14%, 570,000 shares traded. >> there's another one for you, carol. >> it sends a huge message. if you're a company, you've been skating by now you can't skate by anymore. you have to have great forward guidance or investors won't let you skate much longer. >> steve grasso's point, this is one that's a takeover candidate. i'm not i booing this one on this drop yet. this would be a possible takeover candidate. to me steven the reason that twitter is not is that the premium would put it back through yesterday's highs, 53 mid-to-high 50s anybody out there dumb enough to write that check. >> i hear what you're saying. >> it's not going to be taken over here -- >> no no. i thought you were marking about market cap. it's a pricey scenario but you could really strip that scenario where you see a handful of players that would love to this have social angle. they don't have it right now. >> i can't comment on yelp. i don't know much about it. things are tight because inflation is nil. the fed keeps babbling about how we need 2% inflation. because we have no inflation, the economy is rising that's a good thing, not a bad thing. i hope the inflation rate continues to stay down because it means interest rates, long-term rates are going to stay down. why are rates so low? they're low because there's no inflation. i'd like to see it stay that way. >> thanks, everybody, appreciate it. much more of steve grasso coming up on "fast money" at 5:00. salesforce.com shares soaring today. the company reportedly approached by a potential buyer. who could afford a $50 billion takeout? that's next. later, jim grant explaining why he thinks pushing off an interest rate hike -- larry -- could be doing long-term damage to our economy. you're watching cnbc, first in business worldwide. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. we begin with breaking news on glu mobile. >> the headline here glxt lu mobile, who makes the kim kardashian branded game for smartphones and tablets is receiving a stake, 10 cents, china's 10 cents holdings is buying $21 -- 21 million shares at $6 apiece. you're watching -- i don't know what that is. it's not "baby hit me one more time." "oops i did it again," no it's not that either. she's part of the roster at glu mobile. that's why you see the move. up by about 17%, 18% after hours. back over to you guys. >> branded games, a whole new place for celebrities. salesforce has been reportedly approached by a potential acquirer. oh, and microsoft are a few of the companies with a large enough market cap large enough to potentially take it out. josh lipton is joining us from san francisco. >> those same reports salesforce being in play we've had financial analysts on plus oracle is a buyer. we have reports and rumors. it is worth mentioning that salesforce ceo marc benioff was here at the microsoft developer conference. he was in the audience listening ing to microsoft's ceo nadella talk about the relationship that has only deepened since nadella took over in february of last year. the push is to convince the 5,000 developers to write apps for his cloud platform not rivals. >> we aspire to build an intelligent cloud back end for the world's applications running on all devices. we want to have the capability to manage infrastructure spanning data centers. so that means storage in the network that's not just about a data center as a computer but all of the data centers coming together in support of these intelligent applications. >> the cloud wars are certainly heating up. last week we heard amazon say its cloud business a $5 billion business. oracle said it's up to more than a $2 billion run rate. we'll find out if the developers behind me are just as excited about microsoft's as thatnadella is. >> let's start with you, though. does this surprise you? salesforce is a huge target. they've been inquisitive in their own right. now potentially they're the ones being acquired. >> it does not surprise me that there's interest. it would shock me to see salesforce up to being acquired. benioff is a sales force. when he comes on and talks to jim, keeps speeches. he's talking about we're making 5 billion a year in revenues. we're a $10 billion run rate company down the road. i don't see how he could ever give this up under the umbrella of one of his competitors. >> sure. i guess the argument is that anything could be had for a price. it doesn't mean it's one these suitors. >> microsoft not as much because microsoft does have solid growth certainly relative to oracle. the only thing that microsoft has which would make it a potential acquirer is $85 billion in cash. that's way more than oracle. oracle isn't growing. they are paying a 1.5% dividend. the sales force app is an unbelievably powerful echo system. you almost have to base it off the 10 billion revenue numbers. >> can i push back on your empire comment. >> isn't there a scenario that by joining somebody like perhaps an microsoft, that that does create an empire and benioff is able to focus on something larger. soio no that the empire building scenario is sort of mutually exclusive or outside the scope of m & a. >> no. that's a good point. the thing i'd say is that from a business perspective, it does make sense. i will say, sales force needs some scale, a little bit more scale. right now their free cash flow yield is 2% somewhere around that rate. it's half that of its competitors. >> in other words, bottom line what would salesforce do for microsoft? i don't want to talk numbers. i'm talking about business strategy. why would microsoft benefit? >> cin the crm space, they dominate. microsoft, any exposure to cloud they get microsoft is gobbling that up. that's their growth, right? from a business perspective, its crm. it's 25% top line revenue. >> just so everybody knows, it's customer relationship management. that's the ticker for salesforce. >> if you have a sales person or i.t. partner out there selling solutions to be that one-stop shop, to have an entire suite of solutions is very very attractive, both for the company to be able to market that as well. >> then it pays. microsoft stock has soared like doubled lately. >> this is just speculation. it could be them. it could be anybody else. >> we'll have to break up microsoft. remember that? >> it's a reach for oracle because of the head butting that's gone on between benioff, ellison. oracle threw down the gauntlet saying they were going for his jugular, benioff at crm. this would be a shock fehr it was indeed oracle that had that interest. >> thanks for coming here, sharing your perspective. jack moore from jim cramer's charitable trust on this big move in sales force today. plunging for a second straight day, are investors losing confidence in ceo dick costolo? up next jack and suzy welch here in a moment. and also ahead -- >> i think i can sum up the show for you with one word. nothing. >> the show about nothing worth quite a bit more than that to hulu which is paying $180 million for the rights. welcome back. the fed pointing out a weak u.s. labor market in the economy today. all eyes continue to watch if and when they'll raise interest rates. joining me now to talk all things macro, here in a cnbc exclusive is jim grant. welcome back. >> thank you, kelly. >> good to see you. >> nice to be here. >> what do you think about the fed's statement today. >> it seems familiar, doesn't it. >> a whole lot of nothing. >> you mentioned if ever -- i think the if ever is the important part of this question. the fed is in the position of a central planning body it must take all things into consideration. it must levitate prices such as to give it 2% inflation, it must create prosperity through the inprobable agency of money predicting. financial stability. these are hard things to do. otherwise they would have been done much centuries earlier. i think what the fed never gets around to saying is that finance is symmetrical. there's an asset line and liability. there is a supply and demand. they want to magnify and enlarge aggregate demand. through more and more quantitative easing they enlarge aggregate supply. they witness the bear market in energy. a lot of oil wells get drilled. a lot of frac'ing thanks in good part to junk bonds issued by exploration and development companies. the fed is in the business of making things worse as it seems to make things better. making things worse as it would define worse. my view is radical monetary policy is pretty much here to stay. for example, 0% rates have allegedly been part of the solution for our woes in europe and here. 0% rates mean you must have a great many more assets in order to generate income. this is like the german life insurance companies. there was a note on the regulators the looming crisis of german companies. record frequency of defaults in junk bonds. desirable thing except what this means is they're pushing back failure. we must have failures in capital. the minimization of failure is the problem -- >> understood. it seems where there might be an inflection point where bond yolds started to move up. >> in germany they've tripled. >> which is a big move. it comes as we've heard db there's a tweet gross, how the short of a lifetime could be boone. we heard about gunlock talking about how he might go all in. is it possible, you guys at grants are pragmatic. at the end of the day you do tell investors what to do. would you agree with what they've said? that it's time for rates to go up. >> i would say the same thing. i will let them say it first. i've gotten laryngitis for saying the same thing over the last 12 years. you are being paid less than nothing in many cases to buy the emissions of sovereign -- it doesn't sound like a good idea. the reason it sounds like a workable idea is they have been going down for more than 30 years. and in europe there is a regulatory regime that positively favors sovereign debt. it treats it as something that is without risk. of course it has risk priced where it is. insurance company in europe you're looking at a higher capital rating on cash than you are on sovereign debt as david einhorn reminded us. the establishment wants people to own bonds. now the anointed safe asset, it's a matter of price and value. in 2005 and '06, everybody loaded up on securityized mortgage structure. that was the asset of the cycle. now it's sovereign debt yielding just about nothing. we can't act surprised if it doesn't work out. >> understood. let me ask you real quickly, ben bernanke joining an advisory role at pimco. what do you think of his post-fed moves? >> the proof that our federal mandarins have way too much power over the lives of people in finance, they are asked to serve high-level salesmen when they get out. >> jim grant putting it in very few words for us. we have breaking news on apple, we understand. >> what we have here is a dow jones industrial average report saying that apple found defects in certain key components of the apple watch that just got released. the story goes on to see a key component of the apple watch was found to be defective which prompted apple to limit availability of the highly anticipated product. now, the part involves the so-called engine the part of the watch that taps your wrist or notifies you when something -- a notification has come on the watch. it's this particular one is produce's by china's aac technologies. another supplier of those tap engines didn't have the same problem. it looks like at least according to the story, it looks like the availability or shortage of watches may have been a defect in one of the key components provided by a certain supplier of the apple watch. now for more a "cnbc news update" with sue herera. here's what's happening at this hour. as you've just been discussing the federal reserve downgraded its view of the economy after a winter in which growth nearly froze. the fed offering no sign that an interest rate increase might be coming soon removing all calendar references sewnnding a message will only happen based on economic data. a four-engine prop plane with former bill clinton on board made a landing. no one was hurt. music replaced hey edd mayhem on the streets of baltimore today. they we formed a free concert this afternoon. a crowd gather on the plaza to take it all in. meantime, in another part of the town the baltimore orioles hosted the chicago white sox in an empty camden yard. the game started with no runs no hits no errors and no fans. no one was allowed inside due to unrest in the city after the funeral of a man who died in police custody. that is your "cnbc news update" this hour. back to you. >> the orioles having quite a game sue. >> wow. absolutely. they are. >> but nobody was there to see it. >> that's a point. we have to watch it on tv. up next jack and suzy welch telling us what makes a good leader and that you don't need an mba to dominate the business world, when we come back. we get a quick earnings alert to kick us off here. hi, dom. >> this is chinese internet search company, the google of china, if you will, baidu down 5%. this after reporting earnings per share of $6.76. that beats the average analyst estimate of $6.63. revenues, however, post a slight miss, $12.73 billion. the expectation from analysts was for $12.9 billion. also some comments here q2 revenue guidance is below analyst consensus estimates. that's probably adding to some of the downside pressure there. baidu shares down 4.8% in the after-hours session. 205,000 shares trading. over to you. moving on to twitter, a darling of social media has yet to become a darling of wall street. yesterday's earnings leak won't help. many investors are concerned about leadership at the company. ceo dick costolo was on "squawk alley" and addressed some of those concernsen the great thing about running twitter, long before we were a public company, i have everybody telling me every day, you're a genius you're a moron. i have a claireeric saying stuff about twitter. you better have a thick skin and really want to do this to have this job and have confidence that what you're doing is going to pay off over the long term. we have that. >> joining us are jack and suzy welch, the coe authors of the book "the real life mba." great to have you both with us. welcome. >> hi, kelly. >> thank you. >> can you begin, jack by telling us about what you think about dick costolo and how he's handling twitter in this world today? mpl his kred >> his credibility is at stake. he has to initially tell his employers and the market where he's going to go what he's going to get there and what to expect. we're not doing that. if you go back to jeff bezos, for example, and what he's done his quarters told investors here's what i'm going to do. if you like what i'm doing, jump on board. you always talk about short ers have us long. dick costolo is getting hit on a short-term miss. >> not just analysts. go ahead, yes. >> his most important constituency is his employees, because right now, they're getting hammered. the best people will want to flee the exits to get on to the next great new technology and he needs to talk to them about strategy over and over again. we've done our own market research on twitter on the book tour and when we go and talk to a group of business executives sort of in their 30s and 40s, there's lots and lots of tweets about what we have to say. when we talk on business school campuses, there's no twitter noise there. the noise we get is on whatsupp and group me and facebook. they're not capturing this 20 something group that's going to be critical for growth. >> bringing in the panel here guys. carol? >> hi jack and suzy. it's carol roth. speaking of the mbas of the future, if you look at the companies coming out today, you have airbnb. you have uber that owns no cars. you have the sharing economy that's different than an mba has seen in the past. if you're coming out of school or doing a real-life mba, what are the things they should be thinking about that are different today than they were perhaps 10 or 20 years ago. >> there has to be more and more transparency because everybody knows everything. you have to have leaders that give real meaning to why people are at work. purpose and you've got to have an atmosphere that suzy will talk about. >> jack's referring to an atmosphere of truth and trust. things are changing so quickly. one of the things they don't teach you in business school is what it's like to get bhaked and what to do when you've been whacked. for the new company, because of the change that's ever-present, you're going to get whacked. your career will blow up or your career will vaporize. to learn how to be resilient and get over a whacking. that's critical. >> you've got to understand the regulatory environment. as we've gone on this book tour from city to city talking to crowds, as many as 8,000, some as small as 200, all you hear is the strangulation. you having a conversation with jim grant earlier. you were talking about fed rates, fed rates. what we need is an economy that's growing and you can hear from franchisees being trapped and the franchiseors. you can go to a hospital the cleveland clinic. we've been at jefferson in philadelphia. they're getting strangled by the rules of obamacare. you go to a bank and you can go to a small bank as we were in in kansas city to a medium sized ba. >> in ohio to the biggest bank in the country. and all they talk about is regulators regulators. >> understood. understood. last question here? >> actually i'd like to have you both do it. it's larry kudlow. i want to pick up where jack left off. the u.s. economy underperformed for 15 years. it's one of the longest slow-growth periods in our history. we're growing but underperforming. suzy businesses have been profitable. that's one reason think stock prices have gone up but they're not investing. they don't want to make a five seven, eight-year type investment. they are saying this is stagnation. what do you say to that? are they fleeing, running and cutting? >> they're being human. businesses are made up of human beings. right now, the biggest thief of productivity and growth is fear. we hear people talk about fear and uncertainty that there's no growth. that's what's going on. the people are just acting like people and not doing what -- you're sort of describing a more rationale response. >> yes. >> but can't get over the grave uncertainty. >> no matter where you go we've been to all these cities in this book all you hear about is i'm afraid to grow i have regulators sitting on my head. i have new exempt versus nonexempt rules. this has been accelerated as a result of the 2008 recession which has made it much worse. >> we take your point. listen it's so great to have you both on the program. so manufacture these skills aren't necessarily what you get from an mba program and you need them in today's economy. jack and suzy welch, thank you. >> thanks so much. >> appreciate it. apple reportedly finding a defect in a key component of its new watch. what does that mean for this new product and top stock? that when we come back on "closing bell." welcome back with breaking news on the federal reserve, hampton pierson with those details. >> more evidence from the fed that from now on basically every meeting could be live when it comes to possibly hiking interest rates. this afternoon, the public affairs office of the federal reserve initiated a conference call with news outlets to test the technical capabilities of how they would brief news organizations if the fed board decided to change interest rate policy at a board meeting that did not correspondent with a news conference. now, the press office at the fed said it was in no way signalling that something was imminent but simply responding to a question raised last month on the capability to change policy at nonpress conference meetings. a fed official is saying it was prudent to allow news organizations the opportunity to familiarize themselves with essentially the new teleconferencing system, for the record, the next fed meeting june 16th and 17th. there is of course a news conference but the july meeting, there is no press conference scheduled after that particular meeting. back to you. >> hampton, just to be clear on this what the fed is saying here, there's now going to be a way for them to raise and talk to the media, raise interest rates in between their regularly scheduled six week meetings now? >> this specifically talks about the nonconference -- nonnews conference meetings versus the regularly scheduled meetings. but, again, if you have a teleconferencing capability one would think it would apply to between meetings as well. >> got it. thank you. hampton pierson with this move from the federal reserve. we'll have more on it in just a moment. we'll take a quick break, also discuss that possible defect on the apple watch when we come back. dough jones reporting a defect was found in the apple watch. we're joined by lance ulanoff. lance, are we talking about an existing defect or something that was found and doesn't affect the apple watches in operation? it sounds like it was in the initial build and we don't have confirmation of this but once apple discovered the defect they pulled watches and basically kind of start eded again and this may be why supplies were limited? >> how significant is this in your opinion? >> i -- look i've been wearing the apple watch for over three weeks now and the engine works perfectly. yes, it's a moving part within the watch but in my opinion, this does not sound like this is a problem with exist inging apple watches. >> lance, do you think this is a broader issue in china. i have a number of clients that are in a variety of industries that seem to be having different levels of challenges with production coming out of china. do we think this is something to be expected or that we should be wary of as an issue going forward? >> as devices get smaller and smaller and more complex, building them and yield cans get lower and lower. this is what happened with displays when technology reached a certain level, for a while the-year-olds were low and what you have is anning a actual moving part with an inside that's a very tiny device. so if it is a problem with the apple watch production line in the early day, this would have made sense but i have to reiterate that i have not seen anybody -- i have not had problems nor seen anyone saying they're having problem with the taptic engine. >> dow jones finding that after this engine breaks down over time the one manufacturered by aac out of china, they largely move to japan's corporation and didn't find they were experiencing the problem. lance, tell us what this tap tick engine is? >> it's basically -- it drives little vibrations you feel on your wrist and it's the thing that generates the heart beat you send to friends. as those feelings from the watch come from that engine. >> so it's a key part. now perhaps an explanation as to why there's been this shortage. thanks, lance. >> my pleasure. >> lance ulanoff from marble. coming up, squawk with box's andrew ross sorkin. he's been behind bars. it wasn't for a crime but it was for a prime time special. andrew will take us inside the federal prison system and the life of the white claarollar criminal when we come back. tonight for the first time in 15 years, network television cameras go inside federal prisons. in an exclusive look inside our criminal justice system, andrew ross sorkin exploreing the reality of how white collar criminals do their time. he joins us here at post nine andrew, welcome. >> thank you for having me. this is the story of power brokers turned felons and the prison lives they lead after going down as they say. the first thing they have to do inside is learn the prison code of conduct. >> there are certain unwritten rules, you know? you don't reach across the table, across another man's food. you don't sit in another man's seat in the chow hall or the tv room. >> can you pick up the remote and change the channel? >> no. no you can change the channel but i can't. i just don't spend enough time personally in the television room to have established any type of seniority in there. >> reporter: he says it's safe here, though the close quarters can lead to tension. >> it gets physical sometimes and it's not tolerated. if you get in a tight, you're going to the bucket and chances are you're not coming back you'll go behind the fence. >> so that probably looks like maybe a little club fed. that is by the way, what a federal prison camp actually looks like. we did interview a number of other people including dennis kozlowski who we were talking about earlier who is in a state penitentiary totally different situation. he was in protective custody with violent offenders. jah rule, the rapper was one of his protective custody mates. they put the famous people in one place. >> so they still put famous people together? >> they do. >> do they have red velvet robes and bottle service? >> they don't -- well kozlowski who's getting paid $100 million a year going in was being paid 85 cents a day to clean socks. he did laundry. >> is the point of this to make us feel more compassion for the white collar criminals than we might have? >> no i think the point was to do two things. one, to take us inside this world in a way we've never seen it before and to really take people on the journey, the mental journey, the psychological journey that people go through in terms of how they think about their guilt. a lot start out thinking they're not guilty they maybe get convicted and it takes time even once they here in prison to convince themselves of their guilt and what that means and the rehab, if it is a rehab. we have know nacchio in from quest, it was the opposite for him, he talks about getting thugged out. >> white collar guys get longer sentences than they serve. has the justice department gone too far in the last half dozen years since the crash? >> there's two pieces to this. on kozlowski, you could argue the time probably was too long. federal -- some of the federal -- >> how many years? >> he was in close to ten years. and that arguably is a very long time. by the way, people like bernie ebbers still in prison today and he will be there for a long time. >> how much does that cost the taxpayers? >> somewhere between $20,000 to $60,000 per year per inmate. >> there are a lot of people looking for sentencing reforms, democrats and republicans. a lot of these cases get overturned. so i just don't get this. it seems like there's no standardization. if you're guilty you're guilty i'm not making that case but i don't get it. >> you think this is too tough, larry, on white collar criminals? i do. >> i don't think it's too tough, i don't want to pay for it. >> i tell you the flip side. there's a woman, heather bliss, who you'll see in the documentary, she ripped off a number of people and she really did rip them off, with her husband. she's in a women's prison in danbury, she does yoga in the morning, then she goes to work then she gets to talk to her kids in the afternoon. and you sit there and you're like can i feel bad for you? having said that she has four children they're all outside, no parents because the dad's in jail, too. >> you feel bad for the kids not her. >> well she went into prison eight months pregnant. >> doesn't excuse it if you broke the law. >> i'm just saying it becomes complicated in terms of how you think about these things. >> and you can catch white collar convicts tonight on cnbc. "fast money" coming up in just a few moments. my thanks to the panel. melissa lee, what's on tap? >> love triangles. we love them right? we're going to have the latest on this brewing potential love triangle. one of the traders looking at a way to play this so she will share what she's found. >> over to you guys. >> thank you, "fast money" starts right now. live overlooking new york city's time square i traders are dan nathan, brian kelly, karen finerman and steve grasso. tonight, yep'slp's cry for help. the stock is down 14%. we'll talk to one onlyist who had it locked in as his top pick. plus, yields in oil soaring together. is the u.s. rally in stocks about to take a turn for the worse but moving even higher in the after hour session on reports it could be taken out in what would be the biggest tech deal of all time. how likely is this and who could the potential buyers be?