Recall for the model x a couple hours ago. How the bad news could impact the musk empire. Netflix set to increase prices for about 17 million users with increasing competition in the space. This music is killing me here. Can the streaming giant keep Pricing Power . Thats the question well debate here on closing bell. I think we should keep it going the whole time . Why not, sure. Goldman sachs getting hit with a 5 billion fine. Eric sneiderman will join us after the bell and those goldman shares rallying on the hopes that the last few of these remaining settlements we are seeing in the past just as were coming up on earnings season. Where does all that money go . Thats the question well be asking, 210 billion, i think Something Like that at this point. So far, exactly. From these fines and settlements, lets get right to the unexpected meeting between president obama and janet yellen with her thoughts, from the washington post, ylan, good to see you. What are they discussing . Reporter the white house has said that the conversation will focus on the trajectory of the u. S. Economy as well as the global economy. They also said that Regulatory Reform would likely come up. Also president obama made a focus of his administration to expand Economic Opportunity for the middle class. These are very broad topics they have laid out. They are not providing a whole lot of detail around whats being said in the meeting but this is pretty unusual for the president and fed chair to meet. Theyve only met one other time and during the three years she was vice chair, only visited the white house once. She is not extremely close to the president. Not someone who sort of likes to play the political game as others in washington do. It will be interesting to see, it may make sense that she hasnt gone to the white house all that often. Every time she did, if she went more frequently, we would be speculating, right . It might give the impression that the fed was in the pocket of the white house, as well, right . Thats right. You can always pick up the phone and talk, you know. You know, white house spokesperson josh earnest this afternoon in a press briefing said he was very careful to say that the fed is an independent institution, did not want to give the impression that president obama was trying to influence the course of rate hikes and et cetera but did say president obama was quote, pleased with what he called a critically important job, which is being fed chair. President obama generally happy with the job shes doing of the remember that the confirmation process was quite contentious, one of the most that a fed chair faced in modern history. So right now he feels he made the right decision. Forgotten i was looking back through this, she had been head of the council of economic advisers under bill clinton, yellen a democrat and somebody who was not necessarily close to this president who at the time seemed to lean more towards larry smerz for the fed job here. I reported back in 2013 when the confirmation process was under way, her official interview lasted under an hour. She sort of felt that was a short time period for an interview for one of the most influential jobs running the u. S. Economy and steering the course of the u. S. Economy. Both of them had an expectation at that time or did not have an expectation that she would get the job. She was not president obamas first pick for the position but its also interesting to remember at that time people thought she would be the dove, never hike rates. Its interesting shes the person who oversaw the first rate hike where you see Larry Summers argue against them. They are having this meeting on the discount rate the socalled expedited meeting and happens every two weeks but the timing on the day she goes to the white house, all of the speculation is going to be out there, isnt it . Theres a lot of reading and perhaps overreading of fed tea leaves out there. There is this meeting that occurred this morning at 11 30. Closed door fed Board Meeting and so that has raised a lot of speculation, is this related . But fed meetings are always called under expedited procedures. My understanding is that this was a very rou teen matter. Finally, we had other fed speakers out there trying to talk differently about the markets again. You mentioned janet yellen being the person who presided over the first rate hike. If and when is that next rate hike coming . Thats on minds of those in the market here . Fed chair yellen has been dovish but i dont think that the fed has ruled out increases for 2016. You saw markets sort of write off this possibility for a while earlier this year. But youve heard a lot of the more dovish people in the committee, people who even more dovish than janet yellen say, maybe youve gone too far. Two rate hikes sounds about right to me. Thats important to note. Good to see you again, as always. Thank you. Thank you. From the washington post, joining us from d. C. Lets get to our Closing Bell Exchange for this monday. Jason pride, from glenn meade and keith bliss cuttone and company and Rick Santelli from chicago. Keith, here come the earnings, starting with alcoa and opec meeting next week. What are your expectations and janet yellen talking to the president right now. A lot of people being dazed and confused, thats what i expect out of all of the stuff coming at us. And you know, the markets have really been at an indecisive point for some time now. If you look at the trally back from the february 11th lows and where weve treaded water since the middle of march into this. Its really not going to do anything to break that indecisive point. Theres more short term negatives as i look at the market right now. One of those being earnings and expectations on those. We anticipate the First Quarter will be week and we all anticipate that many more sectors beyond energy will be week, particularly the financials which well see at the end of this week with the big banks. I dont think the market is on a good footing to break out to the all time highs again and see more short term negatives than positives. Catching up with the events of last week, one thing im xaching my head about, the japanese yen, the strength there and what kind of signal that is for global markets. What do you think . First of all, you picked the Perfect Place to start. Today is the seventh session in the row that the yen is higher against the green back. I think that if i look at it as a signal, i shake my head because i dont think there are any good pristine market signals anymore, were well past good signals. Theres been too much pro active involvement by governments and by agencies and by Central Banks around the globe. Whats going on with the yen is an offchute of a. M. Laaccumulatn of policy, all with heart in the right place but created dynamics and various structures and when they unravel, its like a cake, no baking powder or sugar and next to a cake with all of the right ingredients, you cant pick which one it is until you taste it. Much of this is coming home to roost. I would look foremore. This is a lessen in unintended consequences. As far as janet yellen and the president , there was so much conspiracy theorizing on the floor. I think its pretty easy. Had a robust beginning of his term, wasnt bipartisan and i think hell have a very robust end to the term. Whether its the lame duck notion or wall street reform or goldman got hit with 5 billion, you were all asking were the 200 billion went. The wall street journal did a whole article on this and couldnt figure it out either. In the end, i think the real question isnt that hes putting on a good legacy show now, its just sad that the middle, the middle of this 7 and a half years didnt have more meetings with the likes of janet yellen and others, to maybe do something worth while as opposed to kind of legacy building. I think thats my interpretation. This is more pro active in my opinion from the president s side than Janet Yellens side the other way. Jason, speaking of robust, oil prices here we are at 40 now on wti as opec gets set to meet about production freezes. Is that good or bad for equities now . Were still trying to figure out if that correlation between oil and equities that was so prevalent at the beginning of the year is still in place right now. What do you think . This is a mixed story here. Right, the savings are big bonus for consumers but consumers have been reluctant. Slow about turning around and spending that. Energy is a big portion of the overall marketplace. Were looking at a First Quarter here still where were the estimates coming in is a 9 decline year offer year. On the whole this economy is still in an upper trajectory. But you have to recognize, were in the seventh year of the expansion. There arent a lot of excesses to deflate but were in the seventh year of an expansion and Monetary Policy is beginning to normal size independent of whether they do it this month or not. Its seems like the path of Interest Rates is higher. Theres risks out here in this market and one of the reasons we think that investors need to stay conservative but equity positioned in this market because were some expansion but boy there are risks. Last week there was a screaming headline, anybody staying tahoe tell who gets usa today would have seen it. Feds put the brakes on mergers, they are referring specifically to what happened to the collapsed all sergan deal. Regulator have just said they wont support them. What kind of broader impact that has on these markets . Its going to have a negative impact. Businesses will strart restart retrenching from the organic, as well as Business CombinationGrowth Strategies that theyve been trying to deploy. They dont know what the new regulation will come about when you look at these new policies on versions, jack lew said two years ago he didnt think the treasury could do anything in rule setting statute to do anything about inversions but theyve come down heavy handed policies which makes a company like pfizer an aller gan rethink things. They wont be willing to go into a merger agreement of any sort when they feel a regulation could come down because they have to pay what we saw pfizer do, from a 200 to 400 million breakup fee. I think its going to cast a cold paw on the market for some time to come, probably until a new administration comes with new rules. Got to go, guys, fresh your thoughts on todays market action. You were paying attention. You hit all of the topics we were covering, strong yen and anti couldnt have missed the usa today headline if you were staying fascinating still hand those out . They do, Old Fashioned, oracle, lots of stories of interest to follow. It was a tough week for marktsz. Dow is system at 49 points for the close. 45 minutes to go. S p is up 2. 5 and nasdaq up seven. Netflix raising prigss for 17 million customers, question is will it ultimately help or hurt the streaming giants Subscriber Base and stock. Two leading netflix analysts have both sides of that debate coming up next. Get ready for the unofficial start of earnings season, alcoa poised to report after of the bell. Klaus will speak sluf exclusively with myself and jim cramer after the results are released. Youre watching cnbc, first in business worldwide. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Welcome back, pretty much evenly split into the close for the sectors in the green led by materials and financials and those in the red health care and telecom. We have movers to tell you about, under armour under pressure, Jordan Spieth came up short at the masters and Danny Willett won the green jacket after jordan jumped the ball twice. There we go. Last thursday we spoke with kevin plank about the return on investment that the Company Receives from athletes that they sponsor. Heres his answer. With stephan curry and cam newton and Jordan Spieth as stockholders were most bullish and excited about the company being built. When you look at roi, we have 11 of our marketing Gross Revenue goes into marketing. Its finding the hot teams, right athletes and players and focusing and partnering with the right leagues. Under armour is on a good streak and we dont see signs of that slowing down any time soon. Until maybe yesterday. I know it was a just a tough one for Jordan Spieth but what i was watching, those warriors, steph curry, unbelievable. If this guy is worth 15 billion of their market cap what hes done for sneakers for the next generation to give a foothold in footwear, theres two sides to the you have steph curry and warriors tieing the record for the most wins in the nba with 72 and you have the stock down almost 6 . I think they were paying more attention to Jordan Spieth. Morgan stanley was paying attention reiterating sell rating on under armour warning that industrywide slow down could cause sales to miss forecast when it reports its earnings on april 21st. Seagate technology spiking, a market perform rating and 36 price target, which it almost has hit today, up 5 because seagate got a positive mention in bear rons calling it 7. 2 dividend yield enticing and expects the earnings to benefit from increased demand from large drives used at data centers. If you live in the u. S. And youre a netflix subscriber, you may need to pay two more bucks. Those grandfathered into the original lower price point beginning in may it will cost you 9. 99 to get your binge on instead of 7. 99. Will netflix continue to have Pricing Power given all of the competition. Mike oleson says netflix has Pricing Power and will not lose subscribeds while cyruss says the Company Faces several challenges. Thanks for joining us. What is your biggest concern . Is it the increase in subscribership or whats on the horizon that bothers you . I think netflix is in a dominant position. It can afford to make rises to 10 and keep the majority of its customers and 17 million customers out of 80 million it will impact immediately. Over the medium term, the next 12 to 18 months, i see about five challenges. The first is increased competition from the big internet eco systems, apple, google, amazon, and so on. These guys have a lot of cash. They are big internet ecosystems and want to move into tv. Netflix is a nichee commerce player they could sideline in the next two years as theyve done with music and other niche and ecommerce fields. Thats the number one concern and theres a number of other concerns too. Michael, let me ask you as well, at what point you think netflix will lose Pricing Power here . I think theres no question that they are going to lose some subscribers as a result of the uptick in pricing but i think you have to keep in mind people are watching netflix an hour or two hours a day, the average is over 90 minutes. Theres going to be maybe a small speed bump here ahead of whats kind of emerging on to a much faster roadway, which is International Growth and theres definitely competition. I think some of those internet competitors mention are clearly going to get more aggressive but i think its important to keep in mind that we only need a small fraction of broadband subscriber users to adopt netflix to have Significant Impact on the numbers. Specifically were looking for about 10 to 15 of International Subscribers to adopt over the next few years and thats a relatively small number given 45 of subscribers are already using the service. They will have Pricing Power as long as they have a menu of product that people want to watch. I keep hearing how they are slimming down that menu shying more from movies and going more towards binge watched series especially those they produce themselves. That the proper strategy in your estimation . I think it is the proper strategy. Really what netflix is doing they are just optimizing the content library. What that means is there may be some titles that are recognizable to you and i that they take off and it causes some people to be surprised but ultimately they are looking at the data and its all about the data they have on content viewership and optimizing the roi on the content spend. They will have big feature films and other major titles to attract new users to the service but once they are in, they are finding that the viewership of some of these original series is much higher roi proposition. What about you, how about Pricing Power do you think the company has u. S. And international . I think right now its dominant and has a lot of Pricing Power but i think thats going to change quickly. I think these the Tech Companies that are moving into its space, the ones i mentioned, they are going to push up content prices and these Tech Companies have a lot of cash. Amazons own programming, things like house of cards netflixs own content like house of cards is a relatively small proportion of content viewers really want. Then youll have the u. S. Elections this year. If the republican president gets in, my bets are that net neutrally rules could perhaps be relaxed if a republican president gets in. That could increase netflixs costs because its one of highest internet band users in america and europe. Even if it stays unchanged, around the rest of the world in europe, where European Telecom operators see American Internet Companies as the competition, internet band width costs could rise there. Finally you have tec