And major back eye for blood testing startup theranos. The proposal is to ban the founder from the business at least two years, the wall street journal reporter behind the story from the beginning will join us in a bit. And the first president of facebook, and now tech billionaire sean parker is donating a quarter billion to Cancer Research. Hell join us live to discuss the move and his own any venture, the Screening Room, that has the movie business up in arms. The earnings from jpmorgan chase, wilfred frost has the story. First up, Energy Related losses, they were significant, but guidance for the rest of the year was encouraging. Down shamp is expected with deal activity and underwriting soft. Guidance also for m a was to remain so for a quarter or two more. However, markets surprised, only done 13 , march seeing an improvement and april okay so far. Here is what dimon had to say. I just add that 5 billion plus of trading in a quarter like this, look as good or decent returns, we have good margins, were not quite sure about shares, but i would look at it as quite a good performance. On the expense control front, it was sufficient to appease investors, down 2 , mainly from Legal Expense savings, as opposed to job cuts, which was encouraging, and then finally on the core traditional banking parts, dimon says i dont think you have a recession in 2016. Instead he said loan growth was strong, especially commercial real estate, autos a bit stretched, but consumer ultimately in good shape. Those are the reasons for aye jpmorgan is doing well. Tomorrow we turns to bank of america, reporting at 6 45 a. M. , and wells fargo at 8 00. Wilfred, stay right there. Citigroup saying it was approved by regulators. Five of the other ones had their plans rejected. Kayla tausche has more. Well, kelly, its the second time in recent years the fed and fdic have rejected a majority of resolution plans, plans that would wind down nipped of bail them out. All must address their shortcomings which raining from derivatives exposure to corporate governance. They have to address those by october 1st. The other banks have until july 2017. Only citigroup received no objection, so of course the bank was very proud of that and issued a statement to that effect. Fbr initial an Analyst Report saying giving the past hiccups, the fact they passed this should give comfort that the other banks will guggenheim suggesting doesnt necessarily on it determines capital payout, and well get those results in june. Bank tracy additional have passed ccar evening when living willis have drawn criticism. The regulatory goalpost appears to be moving. Government accountable says it needs to know more will how the fed and the fdic approached the living willis, they dont know exactly what the agencies are looking for. Nonetheless, though, guys, if the agencies find these banks continue to fall short of their standard, they could force them to sell assets, impose higher capital restraints on the banks, even issue other regulatory sanctions, so the debate over too big to fail and these companies continues. Kayla, stay there, wilf, stay there. How do they fail these things . Do they not work that closely as the process is unfolding . Do they just go away behind closed doors . How do you fail this thing . Thats the question that everybody asks, because irs a subject tiff test, we dont really see hard numbers. The agencies said they made their staff available, so each bank could have a dialogue with their staff, figure out exactly where they need to change things. In fact on a call thorpe Senior Agency officials said there was a very robust process, banks took them up on that, there was a lot of back and forth, but simply theyre making these tests more complicated, and as the businesses get more complicated, what the regulators seem to be looking for changes as well. Jamie dimon was being interviewed at the grants investment conference. He had a lot of interesting remarks especially in light of the earnings and living wills. Because he was pressed by investors time and again about all the regulation, about the 34,000 employees working just on compliance at the bank, and one of the things he said was, hey, ive been told by regulators there is no secret plan to break up the bankses, but the fact that question is even being asked tells you the environment were dealing with. On this point, whenever the came you want on the conference calls, the cfo would answer, and he would say, by the way, we have got so much capital, plenty of liquidity, theres no real fears, and certainly the shares prices reabsented to the earnings beat, not this particular point, but last week he said in his letter were on page with the regulators, were going to do well in these tests, and clearly this one came as a bit of a surprise. Its not quite the same as the ccar in june, its something they have to work with, and it changes from year to year, but hes tried to defend on the earnings side house his universal banks model is working. Just another quick point of interest as well, with regard to one of the biggest concerns, bill, it goes back to oil, of course, he said regarding the outstanding loans and commitments they have made, we think most will be money good, even at these oil prices. You know, thats a big statement to make at a time when the journal, everybody else is calling into question, look, obviously it hurts capital a bit, and you have to account for the fact that these exist, but he said, i dont care if we lose business now, i have a franchise longer term thats going to stand by these guys. If you look at this, the numbers for provisions commodities sectors, it was alternates higher. They beat within that wider segment was on the guidance for the rest of the year. They couldnt hold themselves, as we look ahead to tomorrow, do bear in mind with these other banks, that the actual number was a little higher for jpmorgan. These are the banks, all could surprise negatively. There was a bit of a focus on wells fargo, people arent and they could perhaps surprise on the down side. Yeah, jpmorgan has now become pretty adept at underpromising and overdelivering. We heard that criticism, but i would say the last chance they had to come out was mid february when were in the depths of the market volatility, so of course the guidance they gave there was lower, youre right, it comes out and they have beaten expectations. Thank you, wilf. Lets get to our closing bell exchange. Steven grasso from Stuart Frankel is on the floor with us, and Rick Santelli checking in from chicago. Steve, the word i keep hearing from traders is breakout. Do you see that happening in the stock market . Weve gone sideways for such an extended period of time. Its been pretty volatile, bill, but the more you stay sideways, the more of a coiled spring this is, but you have financials now. They havent performed, or theyve been underperforming. Youve had energy. I think its not been universally hated financials, universally avoided, so i dont think youre going to see money really roll up into financials. I do think youre going to see the market backtrack just a bit. Nonetheless, still range bound, but both the dow and s p taking a run at those highs. What about you, mark . How do things look to you . Yeah, i think theres definitely more participation. Obviously this has been a volume a market with very little volume on the up side as we have garnered, you know, 20 almost off the bottom. I think you see more winners as earnings come the next few weeks and earnings season gets kicking off. Very low expectations, so we see the up side like we do with jpmorgan. I think the path of least resistance is higher. Rick, what did you see today . We had disappointing retail sales this morning and the beige book came out this afternoon and said, look, essentially youve got slow but steady growth in this economy right now. You know, i think that i have to give Brian Sullivan the prize of the day. Hi comments on the beige book release was it might be kind of a cplus beige book, but you know the fed still refuses to tighting cplus with a was i 2 economy compared to the rest of the world, to me you could have it both ways, but yet im wrong. The fed gets it both way. Granted, the same people dont write the statement that write the beige book, but it seems the statement, coming up for reasons to find excuses, or the beige book seems to always find the highlights. Its that quandary were now seeing with and dealing with every day in terms of whats going on with the fdic and fed. Jamie dimon mike careful. Who would disagree, 34,000 in compliance, you know . Subjective when it comes to the government and regulators . Oh, my god, you could drive a truck through it. I dont envy their situation at all. Interest rates moving lower on a good auction, but not necessarily because stocks are strong. And were up 184 on the dow. What leave railroad watching here . I keep hearing 275 was the line drawn in the sand and were above that. It 116 is the real resistance on the way up, but lets look at the flaton quarter, fla on year 2043, those should be your shortterm basically pivots or exit strategies if youre still long in this market. Very good. Thank you, guys. Nice to see you. Have a good day. We still have about 50 minutes to go. Watching the dow, we talked about the financials and the contribution there. The s p is until 19 today, 2080 and change, the analysis gab up 69. Also coming up. If sean parker speaks with you with a first on cnbc if interview, the 50 million donation for Cancer Research. Also ahead, amazon releasing new details with the kind of oasis. Josh lipton has the low down from the left coast next. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Ha minutes left in the trading session. A rally day, jpmorgan chases earnings helped this morning, an early rally in oil thats diminished in the meantime, also helped. Go pro is spiking, and danny coster will koster has worked at apple since the early 90s, you want 19 now. Must feel good if youre him right now. Amazon introduced the ki k kindle oations most uniquely the device has a leather charging cover that the company says can deliver months of batly life. The ereading it comes with instant access to the story, millions of books, newspapers and magazine. Available for preorder today, the cost 290. We know amazon does not break out kindle sales, but mark ma hainy estimates it contributes less than 10 of total revenues, so analysts say it hayes strategic important here for the online retailer. Amazon basically is very keen on selling you stuff, be it digital stuff or physical stuff. They optimize the User Experience so that your Shopping Experience is best used or best experienced on these devices. Reporter in other words, amazon dedicated devices can help encourage consumers to buy more content. Well find out just how much theyre really purchasing when amazon next reports results, likely later this month. Guys, back to you. Josh, thanks very much. H43 minutes left in the trading session. Are you a kindle guy . Of the app on my tablet, so yes, in that regard d. But i dont have an actual physical i kikindle. I was just wondering. Just so that its easier to read. Sean parker is speaking with us with a first on cnbc interview about what is new, too million donation can do for the fight against cancer. Wall street journal reporting that regulators may ban theranos founder Elizabeth Holmes for two years for failing to fix the blood testing companys problems. Well talk to the reporter from the journal who broke the story, when we come back. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. You ppremium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. 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In case are havent heard, wall street journal is now reporting that federal health regulators have proposed banning theranos founder Elizabeth Holmes from the blood testing business for at least two years. This is part of an ongoing process that the company is going through with regulators. As you will recall, the journal broke a number of stories about this that have been critical of the Companys Technology and its ability to deliver on its promises to patients. Theranos Elizabeth Holmes talk to jim cramer about that in october. This is what happens when you work to change things. First they think youre crazy, then they fight you, and then all of a sudden you change the world. I have to say sill personally was shocked to see that the journal would publish Something Like this when we had sent them over is,000 pages of documentation demonstrating that the statements in their piece were false. Holmes, theyre referring refer to a series of articles to explain. Joining us on the foej is wall street journal Investigative Reporter john ke carrieyou. You had some important context around what this means for Elizabeth Holmes and theran theranos. Where do things stand at this point . Reporter the letter was send march 18th. Normally shortly after the letter is sent to a laboratory owner, its made available to the public, but in this case, it hadnt come out yet, because theranos has asked the argument, the centers for medicare and medicaid agencies for redactions. That process and the agency considering them is still ongoing, but we have reviewed a full copy of this notice of sanctions and it proposes six big sanctions, and the big ones are revocation of the. Caller caller laboratories clia license, which is the federal license to test human samples, and a ban from the medicare program. So those are arguably the two most severe most draconian sanctioning that cms has in its arsenal. The story has been about a blood testing system that uses a star small 5789 of bloods thats traditionally taken and does a test that produces results much quicker. And the question has been are these results accurate. John, with this letter coming from regulators, are they saying they dont believe after they have examined the company and its testing system, are they saying that the system is not accurate . Theyre saying that they send inspectors to the companys first and main lab in california last fall, and the inspectors found a huge number of deficiencies, very serious ones that put patients in immediate jeopardy. These deficiencies have to do both with the theranos proprietary blood testing devices that it as code named edison after the famous inventor thomas edison, but also has to do with theranos use of Traditional Lab machines purchased from the likes of siemens, and its Lab Practices in general, not having a qualified quality ashurps and control manager, things like the Laboratory Director just generally not being on top of things at all. So these sanctions that are being proposed are not just in response to failings or perceived failings with the proprietary technology, but also largely because cms deems that theranos cant run a laboratory safely. John, just briefly, regardless of what happens with Elizabeth Holmes herself, is the biggest threat to the companys continued existence the potential shutdown of its California Lab . Well, if the license of the California Lab is revoked and bear in mind theranos can still appeal if these sanctions are imposed. They have not been imposed yesterday. If theyre imposed in coming days or weeks, theranos can appeal to an Administrative Law judge, and then to a departmental appeals board. That being said cms rarely loses these appeals. If the sapgss are imposed on the lab, the lab loses its license, then that means Elizabeth Holmes, who the letter is addressed to and her number two, sunny balwani, will be barred from owning any laboratory for two yours, that would force theranos to shut down the second lab in arizona, and severalally put them out of the business for two years. They are in the process of preparing a response. Whats the timeline, or is this openended . My understanding is they have already responded to this march 18th letter and cms is considering the response. The response is intended to try to convince the agency not to impose these sanctions. As is often the case in these occasions, if cms does impose sanctions, then the company has a window of time of about 60 days i think to appeal to the Administrative Law judge and then to the departmental appeals board. A