Transcripts For CNBC Closing Bell 20160504

Langone. And a lot more. In the meantime take a look at shares after tesla right now. Dropping about 4 ahead of the afternoons earnings release. There was news elsewhere that the company has lost two key executives. Not great timing as they get ready to ramp up that new model 3. We have details on all of that coming up over the next calm of couple of heres. Joining us today the Brian Jacobson from wells fargo. Jonathan from is sitting next to me and Rick Santelli from chicago as well. Look at the numbers the weakness in the jobs number, earnings. A whole litany. But why now. Those are the same things we discussed as the market going higher and were going to continue talk about those a little more. The seems like the market is always a little bit behind and it takes a while to see the effect. Seems like today we have a lot of things coming together. Economic data, europe, china. We had a m a deal cancel this week. So different factors out there pressuring the market. Also ahead of the unemployment number, considering we got somewhat of a weak number this morning, i think investors might be skiddish into tomorrow. I havent had a chance to look at the dollar index today. How are we shaping up there . Its come up a number of times in presentations. This could be day two where the market holds pounds. It is up a quarterback of cent. And mondays close was the weakest in prior months. And it really is all about the dollar and the Central Banks and when these markets even on a relative value basis move aggressively, that transmits huge signals. Multi national, export economies and that has a big worry bead added to the list that americans with the guest. Committing capital at a tile where hey europe looks like maybe its found footing bhou is the euro going to be impacted down the road and a strength in the end is going to show us a few more negatives and continue to hear from bank of japan officials. Saying we could do more. And makes everybody nervous and all of this is metastasizing. The lower revenue seems to be what most are talking about with regard to the stock market. And finally we had minus 1 on productivity. Back to back negatives. First quarter this year and fourth last year. It was the same last year. First quarter of 15 and last of 14. Those are two examples. I only have four examples of backtoback going to 84 and the other two or 93 and 86. So not a good thing. Low productivity is taking the toll. Think japan. Okay. Brian jacobson. They are giving you litany of reasons not to invest in the u. S. And your investments you feel are outside of the u. S. Right now. Right . I do. I think if you look outside of the u. S. , especially in the emerging markets those are one of my favorite areas. The biggest reason isnt necessarily because i this i the politics are good or everything is hunkydory. I just think that basically examinations are so low for the emerging markets. Going into this year, as your first guest said about the data coming out of china being somewhat mixed also lets fold in there the low Commodity Prices really casts a cloud around the markets. Now the Commodity Prices have moved back up substantially. And the data coming out of china while not great it has at least stabilized. I think that could shift sentiment significantly in the emerging market. If i had to pick an area outside of the u. S. To focus on i would be looking at doing a broad base very welldiversified approach to investing in the emerging markets. Before we let everybody go here. Im interested. Is there any kind of read in the markets about this huge political news which is effectively that donald trump is going to be the guy . I think that was somewhat expected. I think the variable we werent expecting is the other candidates pulled out so quick after last night. Now the conversation is what is mr. Trump going to do moving forward. And possible vp names and a committee being put together. I think looking forward is what investors are more anxious to see. I think that was more presumed heading into the last night. Do you have a downside level you are watching the s p here is this. 49 now. We bounced off 47 a couple times and broke blow that. 2041 is going to be a tough level. Thats what ive been hearing aez well. Thanks guys. It is trump versus clinton apparently. The two shaping up to be the likely candidates for each side of the aisle. What effect would these two leading president ial candidates have on specific sectors of the economy in the stock market . Bob pisani has been digging into that for us. Bob. And a lot of issues really need to be clarified. A lot of vagueness. But two particular issue s doddfrank and the banks and energy. Banks and doddfrank. Clinton is accused of being soft on wall street and too close to them but a strong supporter in doddfrank in general. Trumps position is tougher to discern here. Hes talked about being tougher on the banks and also described doddfrank as the disaster. The regulators are running the banks and the banks have been scared and they arent loaning money to people who create jobs. Energy, clintons been a big supporter of solar and alternative energies. National goals to have 500 million solar panels put in soon. Much less support voiced from her for oil and coal. Trump is trump was a back over the keystone pipeline. And a back of coal and ethanol in general. So for example, recently bank stocks have been weak. But they have been weak largely because the earnings season is mostly over. So you see banks down 2 or 3 today. Energy stocks have been weak. Oil has had a lot of problems breaking through 45. And most of the commentary from companies have been very conservative. So there are other reasons other than the candidates why. I think what you are going to see now is a lot of pressure to get more specific on issues like defense for example and how they feel about those issues and whats going to happen to those particular sectors. Then you are going to see wall street sit up and take a lot more attention. Guys back to you. Thank you for now. Bob pisani. Well someone whos been very vocal about the republican president ial race is ken langone. Cofounder of the home depot. John kasich we learned today is suspending his campaign. Mr. Langone joins me here at the conference. Kelly, how are you . How are you . And have you spoke on the mr. Kasich today . No i have not. I know stan talked to him. What do you think . I well it is what it is. Based on this past year i wouldnt listen to the pundits and the journalists and consultants can the advisors because they have all been wrong. Trump didnt spend that much money. So the money wasnt the difference. I think this is healthy. Yeah. I think the fact that we break out of this cabal between journalists and you know, you guys go from the political world to being a broadcaster to back again. So i think were at a point in time where the American People are saying hey forget you guys, we know what we want. Were not happy. And were going to do some drastic things and thats whats goingen. We know the Approval Ratings are quite low for a lot of institutions. The question everybody has for you is do you say now all right donald trump is the guy. Absolutely. If kasich is the nominee for the Republican Party . Im all in. And do you want to know something . I think hell do a hell of a good job. At least im hoping. Do you think he can beat hillary clinton. Oh i think it is going to be a run. No pun intended. But i really believe that one when the world looks closely at hillary, they are going to start asking, or at least the americans are going to start asking questions about what the hells going on here. People always raise the character of trump here as weve moved through the process. And you have probably crossed path with him a number of times. Never had any adverse experiences with him. I know people who have done business with him and they have had a good experience. You hear stories about his business practices. You cant prove it by me. I will tell you this. Look around the city. It is not easy to put big buildings up in this city. He does it with great aplomb and he does nit an effective way. Hi bill. How are you . Im good. Good to see you my friend. If we do have a President Trump lets say, those in the business journalism world are trying to figure out whats going to do to the economy and stock market. Can you point to any possible trends or policies that he might implement that you could see opportunities for . Yeah. Let me tell you the biggest need we have in this country. Weve got to get rid of some of these insane regulations that serve no good purpose at all. And trump will do that. You look at whats going on how the hell can we worry about the next 8 years after what weve just come through the frank . Get that. Like doddfrank. Like sarbanes oxley. We didnt need sarbanes oxley. Dodd frank is a nightmare. A nightmare for the people governed by it. And it is going to drive cost up for the consumers like you cant believe. But no president operates in a vacuum. You know that. Hes got to have a congress. Were going to probably have a split congress. Maybe even leaning towards the democrats. How is he going to get anything done with whats been going on in washington . Let me tell you what. If this congress doesnt get it, that the American People are fed up with the political class, they deserve to go home too. And they will. This is a change. The American People are saying weve had it. Weve had enough of these professional politicians. Weve had enough of all of these people that make promises and tell us this and that and things get worse. They dont get better. Would you say a new lease on life for coal . Coal i think has problems. But on the other hand. They made a whipping boy out of the the banking industry. A whipping boy out of the wall street. I admit im partial. I came from there. But the fact of the matter our capitalistic system has benefitted mightily by wall street and the banking system. Job creation, invasion, you name it. Whos going to be the Vice President ial pick . He said something last night that i found profound. He said im probably going pick somebody who could help me in the political world. Very practical. Hes got to deal with congress as bill pointed out . Now dont think that will take some of the no i dont think so at all. I think hes going to be the president. And whoever he has around him are going to be people to help him get things done. I will tell you this. Theres never been a riper time in america for term limits. And if you want to fix this mess, you get term limits in the congress and watch and see how fast things change. For the better. And by the way, before we let you go. Were talking about an environment where people are worry we heard the productivity figures this morning. They are concerned about growth. Would you go so far as to suggest that Trump Presidency really could see a revival here of growth in ways that we havent been able to identify but that just have something to do with the halo let me answer it this way. We cant be in any worse shape than we are right now in terms of strangling the economy with these insane regulations. Government is the problem. Government is not the solution to the problem. And more and more, you go into business and you say to business people, what do you need most . I need to get these bureaucrats off do what you have to do. Im not suggesting we throw all regulations out. But i think a careful analysis hard to unravel that, you know . Is there a great precedent for unraveling it is only hard if you have a congress that hasnt got the courage to do it. And that is my point. I this i congress is going to have to take a step back and say what is the lesson for us in this political season. One final question. On the issue of trade. Do you have any issues with the core concept of free trade. Not at all. I am a proponent of free trade. So the center piece of Donald Trumps campaign to this point is protectionism. George bush said read my lip, no new taxes. How long kid that leave about two years . Im not worried about. When trump becomes president. Hes going to have a different point of view about a plot of things. You think hes a pragmatist at the core. There is r there are some things we can do to enhance our standing and world. And not to least of witch is regulation. Weve got a mess on our hands. Look. One last thing. The department of education was founded in 19 thereabout, 78 by jimmy carter. The spending for has gone like that. At the same time the spending is going like that. The results of our childrens education have gone like that. Where is the payoff for all the money we spent on education . Where is it . Our Public Schools are in shambles. We are a degrace for a nation. 28 out of 30 for developing countries. And we spend more money per student gold what about gold . Its okay. Seems to be a hedge against the world falling apart. So its an interesting time to want to be doubling down i have a simple approach. Let me find great companies. Let me invest in them. Let me look at the balance sheet, earnings statement, dividends. Im fine. Stocks go down. Any names. I got a munch. Home depot of course. Eli whitney. I got a lot of Small Companies but they are too thin to talk about. The point im making there are great investments out there. My style is simple. Find a great company. Look for a good entry point. When they go down, buy more. When they go up, never sell. A thats what this conference has been all about. Ken langone. Many much more coming up. Well take a break here and come back. 43 minutes left in the trading education. Is the dow down 103 right now. More ahead. Dukes behavioral economist on market and voter psychology. Hedge fund rising star. And new york giants quarterback eli manning gives us his take on Virtual Reality and how it could change pro football. You are watching cnbc first in business worldwide. Trugreen presents the yardleys. Sfx leaf blower dad sorry. Spring is on. Start your trugreen lawn plan today. Trugreen. Live life outside. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Tesla shares down right now. Two key seexecutives are leavin the company. Fill lebow steps in with the latest wrinkle in the executive suite there at tesla. Important change because it comes in the manufacturing part of the business for tesla. And that is really where a lot of the questions are for investors. Can tesla increase manufacturing and do so in a smooth fashion . They have had some problems. The departures that were announced today. The vp of production and the vp of manufacturing are both out of their jobs. This a couple of months after problems with model x. Production. That is the electric suv. All of that the reason we saw shares under pressure most of the day today. Despite the fact that elon musk was out with a statement shortly after we contacted them saying look these are the guys who are leaving. This will be a transition. Im confident in the team for the model x. Well make this a smooth one. But all of this reinforces the opinion of who thinks tesla is in trouble. One of our historical sign posts of a company in trouble is when numbers of senior people leave over a short period of time. Tesla fits that bill. We have a chart that weve had. I guess we are going to have to update it this afternoon. Of Senior Executives leaving tesla. Is a flood of people leaving. And that is not a good sign. This is a company thats cap forecast delivery is one quarter out and yet everybody is confident what they are going to make in 2040 or 2045. I want to see them make the model 3 and sell it profitably. I dont think they can do it. Teslas e coming up. And then the Conference Call a little later on this afternoon. Looking forward to that phil. Thank you so much for now. There is a special guest at the sewen Conference Today. And hes being honored for his work in fighting childhood cancer. Eli manning. You know him for quarterback as the new york giants. A grant aimed to provide longterm care for pediatric cancer survivors. Eli joins me now. How did this partnership come about . Past couple of years been working with an initiative called tackle kids cancer in hacken sac, tennessee. And trying to support the care and treatment and research trying to find a cure for pediatric cancers. And the care had a long history at hack en sac and put this together. And the longterm effects and Beating Cancer and making sure the kids are taken care of. So it is a great Conference Today and really an honor to be here. Getting some stock picks here . Yeah i took some notes from stan and a few other guys and it was going way over my head. You have childrens clinics in mississippi already. Are people coming to you because they are aware of the work you are doing here. Is this something we can expect you to expand on over the years or if people need the support just to be able to jump in and provide it. Yeah, this started out just making visits to hospitals to visit sick children. And something that every time i would visit i would want to know what i could do and how could i do more. And in College Early on, making. And then its events and making programs and starting programs and fundraising and asking people to donate and have events. And you see the impact it is making and ive been very fortunate to team one hackens k hackensack. And come to this event and if its helping children, im on board. That is the whole goal and trying to find a cure for these childhood cancers and getting these guess back home to family and friends and get them to be able to start being a kid again. Clearly a compassionate guy. So should tom brady be suspended this fall . Thats not up to me. That is a whole different category. Ill let them figure that. Thats more complicated than some things does it help as a quarterback for there to be less air in a football . You know im not sure. It may. But there are rules and i dont know if he broke any rules or not. So again ill let the nfl figure out all those deals. What are your thought s s ot apple. Im excited. His mom said hes similar to me. How so . His mom made some interesting comments. So im looking forward to it. And seeing how everything goes. What is your point of view when it comes to the draft . Im reminded a little of lebron james and the nba and how involved he gets sometimes with the coaching and execution of his teams. When it comes to the nfl draft do you make it clear how you feel . And what you are looking for out there. So many things can happen in the draft and you can decide hey were the 10th pick and now all of a sudden guys are trading up and so many things are going on. So the Giants Organization has so many people on staff, that is their job to figure who is the best person to draft. And they do a great job. And it is my job to play quarterback. It is my job to go out there and throw touchdowns and try to win games. So im just going to stick to doing my job. And not get girard. Ha. You have never had a concussion in your career . No. I thought it was so common place. Not every players has them. I know that is what everybody thinks because you hear so much about it. And weve had guys claim they have a concussion and feel great the next day and you have guys take weeks to get over them. So i think there are probably Different Levels of it. It is dangerous. But ive been very fortunate. Always wear the safest helmet and newest product out there to hopefully prevent me from having one. Helping make sure they keep guys out there safe, protected and able to have long careers. We know you have to get back to the football field and all that with an eye towards the fall eli manning. Thank you for joining us. My pleasure, thank you. Bill back to you. Yes, maam. Good high hopes for the giants this season. And you even snuck in the tom brady question. Nice try. Just over 0 minute 30 minun the trading session. Not just tesla but a slew of earnings tonight. Fit bit and whole foods. Thats all coming up on closing bell. Stay tuned. It have options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Igoing to clean betteran electthan a manual. Was he said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Welcome back to closing bell everybody. Time for a cnbc news update with kate rogers. At this hour, president obama sipping filtered city water during his visit to flint, michigan. He urged people to test for lead in their blood. A minneapolis Attorney Says that prince had arrange to meet with a specialty doctor before he died. Nissan is recalling 108,000 rogue suvs in the u. S. It covers the vehicles 2014 to 2016 model years. Nissan says theres been no reported incidents in the u. S. And in effort to warn driver, sprint has unveiled an ie catching sculpture in downtown miami. That is a cnbc news update at this hour. Back to you. Well take a break here as we head into the final half hour of trade for this wednesday. The dow down 103 points off the lows. A leading trader will tell us what hes watching as we head towards the close. And our special soen sompbs continues. And dan ariely and adam fisher will be up in a minute. Stay tuned. This clean was like, pow it added this other level of clean to it. It just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. Welcome back. And boy do we have some movers for you. A number of prominent investors coming out and making their long or short cases for particular names. O zarkss down 3. 6 today. Carson block going through a. A little rock, arkansas based firm. And by the way the speaker after him said we feel the same way. Chief Investment Officer telling cnbc. Amazon is also session lows today. Amazon could be a 3 trillion company a decade from now. He said. Current market cap around 312 billion. This would be a 10 x multiple in a ten year period of time. It is the first publicly listed company where he sees that kind of opportunity. And just now Jeff Gundlach saying some stuff. The last time you and i stood here. We had a rally day. And you were skeptical of that rally. You were expecting a selloff before you would think about getting into the market. Weve had two pretty good selloffs here in the last couple of days. We got in the other day. Were holding the position. But it is very volatile. And do you know what worries us the most . A lot of the big names, price line down today, first solar, apple. A lot of these leaders are selling off. So where are you going to put your money . People are worried. Earnings are the big catalyst right now. And a jobs number on friday as well. Adp have been good. That was weak. That was very week. We get the job number friday. And energy is always in play. Even though it closed fractionally higher it still was down big today. So youre in the market here. Were in here. Thanks for joining us. When we come back, were still waiting for the top of the hour. We have a number of earnings reports still to come here. Fit bit, tes larks whole foods. 21st century fox just to name a few. When we continue thats on closing bell after this. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. Its full of information on medicare and the range of aarp Medicare Supplement plans to choose from based on your needs and budget. 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About 20 minutes left in the trading session. A down day, including the bio tech sector. The ibb down 2. 5 . That includes bio gen. Regeneron and celgene. Im live here in new york city. Investors getting ideas where to put money to work in this industry. And redeposition demonstrations for the First Quarter in something. Where are the opportunities out there . Thanks for your time adam. This is can you share them here. I cant share the specific idea but i can talk about the broad the broad view. And that is what you macro. Global macro fund. We just heard sam druckenmiller up there. I dont want to say ticking time bomb but there is a lot of concern. How would you describe the environment . Well its obviously complicated. Were seeing negative Interest Rates. Which to us. We trade a lot of Interest Rates. So if you ask people 8 or 9 years ago whether you would have envisioned there would be negative Interest Rates. They would have said absolutely not. They look tot the john maynard cainess and everybody who spend no time on this concept because here we are presented with the reality and the theory doesnt fit. Its certainly a tax on cash. Thats clear. And they are doing it the bank of japan, the ecb because they want to encourage inflation. They want stimulus. But lets think about it. If we go back to macro 101, you wouldnt pass a tax increase if you wanted to stimulate. So these guys have added taxes to their economies when they should be doing the opposite. But it started with that intention. As a way of saying were going to prime the pump. Were going these asset purchases and what have you. And sounds like a step too far and going negative a quarter percent does matter rather you start at 5 and go all the way down to zero and things arent working well all the way to zero so you just reflexively say lets keep going. But once you get past zero things get a little crazy. You dont really know how people react that. Does that mean people have a point or they need a different tool. Well you are definitely going to need a different tool and the tool is likely fiscal. [ inaudible ]. And if you think about where Central Banks are now and you look back maybe 20 years ago, they would all have said 20 years ago that everything they are doing now is quasifiscal. So they are already doing fiscal. Their problem is they dont want to cross a red line. They dont want to just hand people money. The more of the same of negative rates is what they have chosen to do but that is a problem. Change of leadership at the white house. So how is all of this going to work . On the one hand extraordinary monetary policies that, you know, maybe argue for something out of the government side to happen. Is it going to happen in the right way to support markets here come november . The u. S. Is obviously the place where things arent quite as dangerous. Were not at zero. Were not negative. Our 10 year government bonds actually have a yield as opposed to germany and japan. And trumps people havent yet Start Talking about trumps economic program. But it is very, very expansionary. When you cut taxes that much and you cant cut spending that much. Helicopter money. Yeah its helicopter money. But the places that need it the most are japan and europe. And europe is really in a tough place because the germans are never going to allow that, or difficult to allow that. But from the point of view of this discussion then trump would be exactly what is needed. Trump is going to be help well, on that specific issue trump might end up being quite helpful. But one thing worth pointing out is the euro is going up. The yen is going up. And these are things that are very very hard on those economies. So they are applying some pretty bad policy and they are getting bad outcomes. So it is really those guys you really need to worry about. A good place to leave it. Adam thanks for joining us. Adam fisher from commonwealth opportunity capital, bill. Great stuff. Were heading to the close, 14 minutes left and the market in comeback mode right now. The dow down just 70 points, was down 71 at the low of the session. It is a thunderous round of earnings out of the bell tonight. Fit bit and whole foods are a couple. What is freedom . Yes, its riding a horse across fields and stuff but its mostly getting to watch your directv with unlimited data from at t. Were setting families free. So they can stream away and not squabble over whos using how much. So go, family. Watch. Freedom. Seize the data get unlimited data when you have at t wireless and directv. Switch now and get 650 credits, per line. Im in vests and as a vested investor in vests, i invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Comps were down 2. 8 percent in the first three weeks of the kwur going to be reported in full after the bell today. The streak thinks the trend improved but just to negative 2 . Still a contraction from last year. Investors are hoping to hear more how the Company Plans to retain shoppers in the face of competition and pressure from lower prices across agencies analysts are looking for more stuff. Joining me at the top of hour. Here is the auto over the seven pearls of financial wisdom. I wish we had time for all seven of those. What have you made of the earnings season so far is this. I think were in sort of a dull drum market. Companies are just about making markets. They are severely punished if they arent so they are guiding down very careful. Making sure there wont be any truly negative surprises. Youre telling your clients to lay low. Right. It is not the time to get overly excited. But it is not to time to run for the hills. By the end of the year well see a pick up in earnings and i think things will look better. And watch fash rally at the end of the year. I think were find one. If todd pick. Jeff gundlach would saying hed go long reits and short utilities. Anticipating higher down the road. Thats not a bad trade. And some of these reits just have good skperngs giving you a lot more than fixed income for the people that are looking if are income. What about technology . Technology is going to be saying why are we looking back. If you are not in tech, tech is a good category to get in. Bigger is better. Amazon, apple, google. Forget netflix in my opinion. But the big names are really going to serve you well over the longterm. Put those this your retirement accounts and you will be set for the future. Why not netflix . Well they are a one trick pony. I dont see the National Rollout really saving them and unless they widely expand what they are doing, i think they are going to be easy to be eaten. What about energy . Oil prices have come back here to some degree even though we are getting more evidence that they are still pumping wildly right now at opec. They are pumping wildly and all the containers around the world are filling up. So i think this 50, 40 a share price could be a head fake. We could have lower again before we go up. So dont get too excited just yet. There is still a lot more oil around and i dont understand this price. Lot of Money Managers will point to some of the oil joints that pay such an attractive dividend. If you are going to stay in oil, stay in the biggest names. Bigger is better in any market that is defensive. That is just a safer place to be. As a friend of mine likes to say, when the waters are turbulent, sailors like the big boats. Absolutely. Lets go for a luxury yacht. Not even a big boat. I got it. Carol, thank you. Upcoming we have a closing countdown and after the bell were minutes away from breaking earnings news. Fitbit, tesla, whole foods, 2 st century fox. A lot coming your way. And after the bell, back to the sewen conference. Jeff gundlach will join us live. He just finished presenting and hell give you his thoughts on where to investor in this turbulent market coming up. Tytr about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today 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. 2 30 left as we head to close the dow down 95 points. The s p how to for the first three days of the week. Rally monday, selloff yesterday. And more selling today. For the week bob pisani, down twothirds of a percent for the month of may here so far. What do you think . So far youre right on the old cliches. Ism services were pretty good this morning. That was the highs of the day essentially and then we just sort of came off there. A lot of people asked about the bank stocks. Weve been weak for four or five days on the bank stocks. Down about 3 or regionals. Going into the earnings season, they did the predictable thing. They all ran up. All ran up. Three or four weeks ago. As we entered earnings season. The bank index the last week. And in the last few days they have been weaker. So its been up going into earnings season as earnings season has come off, they have come off too. A full spectrum of Companies Reporting tonight. Way too many to get to all in the next hour. But we will be highlighting for example, tesla, fitbit, whole foods. And 21st century fox. We know margins are notoriously slim anyway in whole foods, does that make their margins that much slimmer is this. Definitely. But i this they they have to. They are bumping up against their ability to grow. They have basically gone in all the markets they could. So it is a natural thing. If they can do that and keep up the quality, ill essenticertai follow them. [ applause ] towards the close of trade. Jeff gundlach won joining us in a little bit. Ringing the bell here at the new york stock exchange. Stay tuned for the second hour of the closing bell. Hi everybody. Bill will be joining us in a moment from the floor. Here is how we are finishing the day on wall street. The dow was in negative territory much of the session. Closing down about 99 points. The s p down 12. The nasdaq the underperformer again. Despite amazon getting a lift here now investors are getting ready for earnings after the bell and we have reporters standing by. Phil lebow in the driver seat for tesla. Josh covering fitbit. And i cant keep up. As soon as those results all hit the tape. And as i mentioned bill will be down there. Alongside cnbc senior markets commentator and pro columnist michael. John najarian as per usual. And with comments out of the conference, what do you make of the overall tenor of the markets here . Another day of relatively gentle pullback type action. Seems like a lot of the drivers that got us here are at least reversing on a shortterm basis. You had the dollar flieding up. It had been sliding. The market here in terms of u. S. Sox is trying to digest whether the whole dynamic has changed or just having a pull back. I think the vix tells you right now it is just kind of a no big deal pull back. Were trading almost exactly flat year to date. Whats causing this doc in your view . Nervousness from the fallout continued from carl icahns comments. As well as disappointing earnings last week. As great as amazon and facebook were last week, there were a host of others. Alphabet, i was gonna say google. Still you have to to get to that. Its tough to spit it out. However, i think mike nailed it as far as the reason were so flat is that crude oil isnt giving the bear what is they need. They need a two or three dollar swoon. They are not getting it. Every day it trades up. Comes off. Goes negative and just like today finishes up about. 6 . Until they get that break it is going to be tough to break the market. Why duke that is . Were getting ufd that the build up continues. They are still pumping big time. And reserves reaching record levels and were still well above 40 a barrel right now. The market is captivated with the idea that we got some really important low a couple of months ago. The dollar has been a help to it for a while now. And dollars not exactly rallying hard. So that remains in place. And incrementally i dont think it has to say at these levels. And the producers selling forward and trying to lock in prices. Maybe people feel like look it is not going to be up and away from here but weve created a base that is it is not an outright short just yet. Kelly evans at the zone conference with a special guest. Joining me is jeffrey gundlach. Thank you. And as mentioned were going to get a ton of earnings here. Well keep this focused in on that. Lets start with what you basically said which is negative rates are causing deflation. Am i going too far there . Its pretty obvious that negative Interest Rates are deflation. Form of a tax on wealth but also outright deflation. If you have a hundred dollars and invest in a bond and you get 98 back at tend of five years, that is deflation. So its not a good idea. It echoes what adam fisher told us previously as well. Which you know what, it turns out there is a difference between having ever since the rates went negative in europe, the dollar has weakened and the euro has strengthened. Same in japan. The euro stock market has underperformed the u. S. Since they went negative. The japanese stock market has been terrible since they went negative. So one of these days the policy makers are going to realize that negative rates are a problem. But if positive rates are a problem and negative rates are a problem. You got a problem. So the only solution has to be on the fiscal side. That also seems to be a theme that people are coalescing around here. What about quantitative easing. To some extent the research seems to demonstrate that works kind of the same way. Quantitative easing seems to help stock markets pretty well but negative Interest Rates dont. I dont think were going to go back to quantitative easing in the United States. I think it is very unlikely. They are doing it in other countries. And maybe it is helping. But i just think these Balance Sheets look awful big and the debt problem is tried to be solved with more debt. The Central Bank Buying sit partial solution. Ive biv given away helicopter money forrise. Ultimately or you could print it. Just outright print it. But that actually would bring back inflation. I can bring back inflation. Its 4 00 now. By 5 00. We announce that were giving everybody 1 billion dollars. The lines at the ferrari dollars would be smog to behold if the price didnt go up. So problem is how do you calculate so you dont fro deflationary to unpleasantly high inflation rate. And that is going to be the challenge. Donald trump is going to win. Ive been saying it for months. You didnt think he was going to get the nomination what are you talk about. Barons round table and i was asked whos going to be the next president and i. I think what will happen is trump will have a very large deficit. He says hes going build a wall. Hes got to at least try. Hes going win. And hes very comfortable with debt. We know that about donald trump. And just like ronald reagan. Do you know the slogan in the 1980s . No. It was lets make America Great again. It actually was. So its sort of reactionary. Hes more like reagan than people i think. And the question is will he boost the economy from infrastructure prices and the like offset the potential drag from shrinking global trade. Usually infrastructure of highways and airports, not necessarily a wall along the southern border. He talks about airports and the infrastructure. And hes right. I was taking a taxi in and we go through met life building i guess it is. And the place looks terrible. It is crumbling. Falling apart. Bridges. China has a 130 new airports, chinese cities with nobody in them and america or or would you rather be china with shiny infrastructure but frankly it could be a giant house of cards . I would rather be United States for sure. Very mist trustful of thorton e economists. So as od as our political process is. Which has been laid bare by donald trump. Look at what hes fought through and won. And are you worried in a environment where the chinese leader sxi jinping is cracking down and challenging other countries in the south china sea. Are you worried that donald trump and his character or however you want to describe it could cause some kind of global im just predicting things that could happen. Im not a policy maker or a central banker. Im very apolitical. I just perceive that this is going to happen. So i think it is important for investors to deal with reality. Somebody said when i said in january trump is going to win i they said no way. They want want it to happen. But in investing, hope is not a method. You have to deal with reality. And i believe and im wrong maybe 30 of the time, ive gotten many things wrong over the years. So we talk about your investment recommendations today. It was to go long the Mortgage Rates and short the utilities. That is sort of a specific valuation. Well they should move over time. And they have historically they are highly correlated because they are Interest Rate sensitive and they are yield proxies. And so utilities have done incredibly well. And the Mortgage Rates since middle of 2003 have a negative total rate of return. So the valuations have gotten incredibly stretched. And if you own the reits. You get 11 plus. If you own the utilities you get 15. 3. And ill bet dollars to donts the two prices converge. What would trump look like . Arms manufactures maybe. You think thats a real thing because ken langone earlier suggested, you know, hes saying these things but hes a pragmatist at the core. Sure. Hes going moderate his positions but just like president obama had to deliver something on healthcare. He promised that over and over and over again. And donald will have to at least try to build a wall. At least try to do something with jobs. Try to help the how far . I dont know. But hes got move in that direction. He cant just say i was just kidding. So core stuff here. Hour marks was saying has 50 x. 50 x is money. In 6 and a half years. How do you i dont think you do that ever again. Just like someone was saying on cnbc yesterday. You know, apple is not going to go to a 5 trillion company in the what do you see out there the opportunities to really make those kind of transformative trades or investments . I think that like my recommendation here i think people greatly over believe things to be save. And then they all [ inaudible ]. Subprime in a big way. Sub prime aaa floaters thought how could you lose on this . And dropped Something Like 80 . And i think once the investors start to experience red ink they are going to panic and sell. So im fond of shorting. I run a little macro hedge fund. Stan drugen miller. I thought his presentation was excellent. It is like a 30 year theme. But many of the things he points out. We had a massive bull market because we had high Interest Rate asks very low pes back 35 years ago. And there is a lot but here is what i dont understand. If hes right but you are also right were going to have fiscal stimulus coming couldnt a the timing is so tough. Because hes talking about the monster theme. And the theme of fiscal stimulus has room to support things. But you are really playing a dangerous game because you are trying to pick up dimes in front of a steam roller. So on the bond side, you could look across that universe and there are a lot of things that are incredibly ps expensive. Parts of high yield that are cheaper and always individual opportunities there. In that space, where do you look and say, okay, here is an opportunity to really generate great returns . Yeah, unfortunately it is in sectors that are difficult for individual investors to participant in. They are largely institutional markets. We do a lot of things with marge backed securities. Our total return fund is cool. The higher market is challenged with the leverage in the high yield systems challenged with boenl global slowdowns. Maybe not ongoing Robust Energy crisis. But the market doesnt have those risks. Lower gasoline does not make people default on their mortgage. Lower gasoline makes them pay their mortgage or at least have the wherewithal. And there are opportunities of yields of 10, 12 in cnbs market. So again it is a narrow thing. Dont try it at home. But it does exist within funds. One of the reasons why some funds yield more than the asset class itself. Before i let you go. One of the things people are trying at home is tesla. Stock looks up a little after after hours on earnings. Ive liked tesla for years because of their battery technology. And ive told people, elon should just have a battery company. If he could create batteries that powered houses that could store enough money. If that happens its truly transformational. So this binary outcome i think it is worth it for a lottery ticket. One of the most transformational this is an expensive lottery ticket. Yeah. It is not buck. It is expensive. But the potential transformation of going from a power line to a battery is like the telegraph was back in 1840. Transformed the world. If you had really powerful batteries. You would be a transformal company. He has the potentially to do that. So i it is very expensive. It is very volatile. So buy it at 200. What about apple which never hit 200 . I said short apple four years ago. I said it is going to 425. It did. We bought it at im talking pre split. Because i dont really follow them anymore. I do have a real problem with apple. In that steve jobs was the man. And what is their product cycle Going Forward . And i talk about that in 2012 as one of the reasons for my bear case. But it is not expensive. No. You know, and there is a lot of cash there. So i just you dont have to take a position in something. I think apple is going to be diminishing in importance looking forward a generation. I know we have to go but jeff bezos is now getting a little of that effect, that steve jobs effect. And we say that could go by ten times in ten years. If only a profit margin of 2 . That would be wonderful. Thank you. Important interview. Lot of great stuff. Great job kelly. While they were talking you could probably see the lower third of the screen there. Lots of earnings coming out. Tesla out moments ago. Phil lebeau. Howd they do . One reason shares are higher is because numbers came in roughly in line with expectations so a relief there. A loss on a non gap basis, of 57 cents a share. One penny better than estimates. Revenue in at 1. 6 billion, just a smidge higher than analysts called for. So why are investors optimistic after hours . Two delivers, tesla expects to deliver 17,000 vehicles. That is shy of what some estimates are out there expecting deliveries to be closer to 19 or 19,400 vehicles and if they hit that 17,000 target, they will have delivered 3180 31800 in this firsomething or o. Tesla because of its optimism of the future is moving up its target for building a half million vehicles annually. Remember it used to be at 2020 was the target. They are moving that up two years. Tesla is now saying by 2018 its annual production of vehicles will be 500,000 vehicles. Moving it up again by two years. Couple of other notes from the earnings letter. The gig factory is on target to deliver first battery cells by the end of this year. And the model x the production issues we saw earlier this year have been resolved. The big head line. Moving up the 500,000 target by two years is going to get a lot of attention on the Conference Call starting next hour. You were nodding a lot during that report. I guess we got your attention. Huh . Sure did. Because this isnt just a small move. This is a massive move. We understand why to some extent that he could make such an estimate and that is because of the pre sales of the model three and so forth. Even though they were only a thousand down and are refundable and that sort of thing. Those numbers were mind boggl g boggling. Especially with two production engineers leaving, bill. Hes basically drawing that line in the sand for himself. Or maybe even at an edge of a cliff and hes pushed himself right out to the edge of that cliff. Because this is a huge hurdle now. 500,000 has to be there by 2018. If hes 100,000 short, which could be. Hes got to do 49 thousand the rest of this year just to make targets for this year, that is a huge leap for elon musk. He must be supremely confident to to make that kind of estimate out there. Phil do you have more . I do. With regard to the model 3. I think people were hoping for terms in total reservation. That may come out on the Conference Call and no doubt i and other reporters will be asking if there is an updated number. But as of right now. The most recent number that we have from tesla is what elon musk himself said in europe a week, week and a half ago when he said they are closing in on 400,000 reservations for the model 3. Whos got the longer waiting list . Denver broncos season tickets or model 3 orders there . Thank you phil. Lets go on to whoele food s. Earnings are coming in with 44 cents. That as beat of analysts expecting at 41 cents. Revenue though slightly below expectations at 3. 7 billion dollars. Analysts looking for 3. 74. Comps down. So far the first three weeks of the Current Quarter looks like that trend has slightly improved. Conference are down 2. 6 . That is of course below what analysts are looking for for the full quarter but were just three weeks in. Looking forward the guidance also disappointing. Whole foods is saying think expect weaker comparable sale, revenue and eps lower than previous Guidance Range and due to recent abc actions in the ma. In california. So perhaps there is hope there. Coceo walter rob says the Company Believes there is room in the market for both formats and that sort of answers the question about cannibalization that many are afraid of. Back to you. So let me get this straight, mike. Revenue miss and they are guiding lower and the stock is up 5 . That might be a measure of exactly how beaten down the stock is. Keep in mind, around 28. About half what it was last year in february. Talking about the price it fetched in 2011. I think what you are possibly seeing is maybe people testing the idea that we have some kind of a longterm turn here. Dont know this is going to last through the Conference Call. We never know that kind of thing. But trading as people are braced for worse. Lets get to fitbit. Josh lipton, to be down sharply, what happened . So fitbit reporting eps of 10 cents. The street was looking for 3. Reporting revenue of 505 million. Analysts expected 404. A beat on the bottom and top. Disappointment though in this report. Fitbit saying it sold 4. 8 million devices. That does miss expectations and analysts expected them to sell around 5 million. Gross margins about in line at 46. 3 . The guidance is disappointing. Q 2 revenue, 565 to 585 million. That beat expectations. But fitbit is also guiding q two eps of 811 cents. Analysts thought fitbit would guide for about 26 cents. Really undershooting there. The full year. Fitbit looking for 2. 5 to 2. 6 billion dollars. On this call were going hear more from the competitiexecutiv. Into this print fitbit had been on a recent run, up about 40 since that february low but now heading lower here in the afterhours. Thank you. D. J. , looks like the guidance is what took the stock down here. The guidance, the miss with the number of units sold and whats the cap ex. How much are they going to spend for this innovation they say they are going to deliver . And that is something the investors, they wanted 25 cents or more out of the earnings or out of the bottom line number they are going to do next quarter. They are not going come to half of that. And that is because they are going to spend on it innovation. If on the call they have something that really is a wow product, which they probably wont have by the way at this point, then that would save it. Otherwise yeah the shares are going to remain under pressure. Lot of competition in that category. And people also losing enthusiasm for the category. We know how many fitbits are in the interedrawer at home. This is on my wrist. Mine is in the drawer. Still to come more. Plus well be speaking. Thats all coming up. Youre watching cnbc first in business worldwide. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. E. T. Phone home. [ soft music ] when you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Welcome back. Those results from the 21st century fox are now out. Julia boorstin has the details. Fox moving higher. They are now up less than 1 but the Company Reported revenue better than expected. Fox reporting nearly 6 Revenue Growth to 7. 23 billion. Earnings coming in line with projections at 47 per share. The companys cable tv really drove the upside surprise. Saying saw higher affiliate and advertising revenues across domestic and international tv. And it is interesting the film and entertainment business saw. Revenue came in slightly lighter than expected but earnings was a much bigger number than wall street. Statement said the companys Brand Content will drive the business forward in existing and evolving media landscape references opportunities in distribution. Julia, thank you. That stock round turn. Big rally on initial news and its come back to neutral almost there. Tesla, up 5. 5 right now. After it reported quarterly numbers moments ago and ramps up production by two years. Were joined by no you have the short on. And james al ber teen, as John Najarian point t out, they have drawn a big line in the sand ramping up production expectations two years. Ambitious or encouraging to you . Thanks for having me. In our preview we talked about three things. Guidance being relatively unchanged for this year. 80 to 90,000 units as expected came in. Also they are walking back cash expectations. They are using the model 3 demand. Fulling forward the 500,000 units because i think they are telegraphing a need to go back to the capital market. Theres always been a execution risk beyond the orders for the model 3 orders. We expect on the call hopefully they can walk us through how to they anticipate executing on this accelerated timetable . I think they are not surprise they are moving production up. By early 2020 electric vehiclers could be cheaper than like for like cars. And given how they have done we see underlying demand for tesla vehicles coming in at one million per year by 2020 which is even more than they can supply. So are you rethinking your short or licking your chops now . I think the problem with tesla is that it is a really small tiny car company, valued like it is a big company today. And i think it is going to cost a tremendous amount of money to build plant capacity to get them up to that amount of cars a year. If you look at how tesla exists is that they bought a toyota plant in freemont, california for like 40 million bucks. You cant do that again. They are going to have to spend 3, 3. 5 billion roughly which is what honda spends roughly per factory on building these plants and they need another giga factory. And talking a 5, 10 billion of cap ex to get them to be a sm l smaller car company and. Stuff soon. So even if they can get to these production targets longterm exactly how much capital is this Company Going to have to raise and consume before they can be viable and justify current valuations . I think the other a guests name is john. I think he hit the nail on the head in terms of the capital need longer term. In terms of additional production. Lets just focus on the immediate need for the production line in freemont. And the giga factory. They have partners in pan sonic. Quite a bit more than what anybody was anticipating the end of last quarter when they said they would be Free Cash Flow positive. This is a little negative signal granted i am still positive longterm. Doesnt sound like anyones changed their opinion on this company after what they have heard so far today. Thank you. Reporter coming up were going to get another check on this wild after Hours Earnings session. And why do some investors refuse to cut their loss ossen a bad stock . Thats later on the closing battle. I know breaking the neighborhood speed record looks easy. But i wouldnt be able to burn rubber without optum. See i have diabetes. Which can make it a little harder to become a racing legend. Thankfully, though, i have an optum nurse and inhome biometric monitoring that really work with my doctors plan. Which means diabetes doesnt get in my way. Unlike the neighbors front yard. This is healthier, powered by optum. From health plans to providers to employers. We connect all parts of health care. Healthier is here. Welcome back. Here is kate rodgers. The ntsb at this hour said a small airplane hit a bald eagle before crashing last month, killing all four people on board. The first civilian plane crash to result in deaths after an impact with a eagle. More than 80,000 residents of the town were ordered to evacuate. No injuries have been reported. The European Union top Court Dealing a blow to the Tobacco Industry requiring plain cigarette packs, bann ened Electronic Cigarettes and more stuff. That is the cnbc news update at this hour. Back to you kelly. Why does a billionaire candidate connect with voters fed up with the economy . You are going to go on stage after we speak is that right . And im going talk about trust. And what creates trust and whats destroys trust. Why do you think that is such an important topic to this audience . Generally, if you think about how much of a trust in society it is kind of amazing. We actually dont appreciate it enough but i was recently in peru and i went to buy a pen. Not a big deal. But you go to buy a pen and you meet somebody behind the counter and you say i want this pen and they give you a slip of paper. And you take that slip of paper and go to someone else and pay for the pen and take that to a third person who gives another paper, and the third all in the same shop. Because they dont trust anybody. They dont want anybody to have the pen and the catch is at the same moment. And as an economy, experience for a long time, trust has a lot of opportunities to get much worse and actually hurt the economy a great way. And we should get into that but im more interested why do hedge funds underperform . Audience is dealing with a difficult environment in which stock picking still works over a long period of time but stock prices have been whip sawing everybody around. And some of the Big Companies like sun edison that were big bets, some of the speakers inside have, you know, filed for bankruptcy. And investors are wondering if it is worth the money anymore. Somebody has suggested hedge funds are over or dead or something to that extent. What do you think are the psychological factors that account for the persistence of paying these fees and this whole profession. So i had dinner with a Big Hedge Fund a few years ago. And the guy next to me was the manager of this hedge fund. I asked if hes willing for me to ask his customers straightforward questions. He said. Go i said this hedge fund is charging you two in twenty. I said what would you differently if it was one in twenty . Or three in ten . And most of them, or, you know, half in ten. What happened . And most of them said they dont think that they would have given him anymore money. And weve kind of had this discussion about why dont they Pay Attention to Management Fees . And they just dont. You have these two variables. Expected returns and Management Fee and people pay lots of attention to one and very little to another. So it is hard to say if it is worth it or not because it is a complex question that is beyond and they are all different. They are all different and it is also beyond the simple returns. Even think about individual investing. Say im your Financial Advisor and you come to me i and do a lot survey of your risk attitude and trying to figure what to do with you. And we decide you shouldnt take much risk and i invest for you in that way. But then when i show you return, i dont show you risk adjusted returns. Right. And everybody in the financial industry is doing the same thing. Were measuring something about your desire. And people go in a particular hedge fund for a particular purpose. Like it is an instrument. You want this risk. You want to do something that is uncorporate e uncorrelated and so on. But then when we report it we report it not in terms of what we we have to let you go and get ready for your own presentation, dan. Thank you so much for joining us. And good luck with the kraud in there. Dan ariely head together stage here at sohn. Up next. Other big names just reporting tharp earnings and donald trump is now the likely republican president ial nominee. This after easily winning indianas primary. Coming up. What Leslie Moonves thinks about something. When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Weight watchers surging after hours. Weight watchers reporting Earnings Loss of 17 cents adjusted. Which did peat expectations. Revenue a slight miss. But the metrics compelling and the period subscribers were up about 5 versus the prior year period. Ceo says it is leveraging the success of the identity beyond the Scale Program which investor Oprah Winfrey helped launch. Lastly, Weight Watchers is raising its 2016 earnings guidance. The stock up better than 14 after hours. But lets just put this into perspective bill. This is a stock that is down about 30 year old to date. Thank you. But yes, your chicago neighbor oprah is making money in the after hours here though. She is making some money back. She bought in single digit. From 6 to 18 and then up to 26 and bleeding lower since. Shell be okay. Yeah. And the guidance is very strong. Even though neither the revenue number or the earnings or loss are compelling. What is the compelling reason to buy in this a highly competitive category right now . I cant find you one for you. I wouldnt be chasing here. Other than the oprah factor. And she is a great salesperson yes. And a industry constantly going through shake outs and one regimen and diet taking the place of the another. That she can stand outs s as th face of this brand and keep it in the center. And donald trump now likely the nominee for republican for president. And well weigh in next on the effect in politics and broadcasting and advertising coming up picture. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Welcome back. Cbs chairman and ceo joins squawk on the street earlier today. He spoke about the big pay day he sees coming for broadcast Television Thanks to political ad spending in general, and likely gop nominee donald trump specifically. He hasnt spent a lot up to now. I think in the general election he will spend a lot more. He will have to. In addition, with donald trump leading the ticket, there will be a lot more attention on local races. So we think in the senatorial around congre and congressional races there will be a lot more spend. We think this will be the largest spend in a president ial election news cycle. So it was interesting, mike, in his speech last night, trump was talking about how much these negative ads against him were in indiana, how he saw five in a row, tens and tens of millions of dollars were spent. Is that the implication here . Trump hasnt put a lot of money into this race. He hasnt. In fact, hes sort of bragging about the fact that he doesnt even need to match anybody else dollar for dollar on this. That is the question. I dont have any surprise that les is going to talk how its going to be a record spend when he owns the network and all those tv stations. I do think its interesting to ask the question, whose money is donald trump going to spend. He probably out of pocket does not have a billion dollars liquid for a campaign. Do you like this company . Cbs . Yes. Of course. I think moondez is absolutely right. Folks are going to spend like crazy. All these senate races, and theres a lot of close ones, theres going to have to be a lot of money spent just to get in front of the voters, because of trump and hillary sucking all the oxygen out of the room. And then kelly, of course, viacom as well. Theyve got to figure all that out, right . Im just thinking to myself, too, if im the rnc, am i going to spend a boatload of money when it doesnt seem to have moved the needle. Theres so much at stake. Up next, what youre saying, bill okay. Ill do this. Stay right there. When we come back, well count down to the Conference Call of the big earnings reports that weve been hearing about. Kelly and i are back just after this. Im looking for my notes on all the earnings that came out here. Lets check how theyre trading right now. Tesla up 5. 25 right now on really impressive guidance. Well hear more from them on the Conference Call coming up in about 35 minutes. Fitbit down 11 right now on some disappointing guidance. Even though they hit their numbers. Whole numbers is up after sharply higher after their report came out. John, what are you looking for . Fitbit especially here. I dont know if fitbit, like i said earlier, i dont think they can say anything that will really get people excited, because of the sale numbers in particular. Especially the numbers on the fitbits themselves. The new products could be very exciting, but it will be a big spend to get them there. All three of these stocks are actually real battleground stocks. Heavy short positions. Management has been trying to regain the legitimacy, or keep it as the case may be. Whole foods is very interesting here. It has a lot of these moves on earnings. People think maybe you can take the bottom. People for a while were talking about the lbo, all the other things. The Conference Call there might gain some clarity about what the outlook for the next couple of quarters is. Kelly, you spent the day at the zone conference. Your head spinning with all the ideas coming out . I love it. What a difference 15 minutes can make when youre drilling down. I thought Larry Robbins gave a great presentation, that its hard. Reiterating the Six Companies he still likes longer term. I think the theme was funny, trying to reassure everybody that you kind of have these ups and downs, but on the other hand, you have stan out there talking about much larger concerns about sort of a fragile environment. Ill try to write out the individual names, too. Go go, that was interesting. Well watch the amazon. A lot of great stuff. I see a spark coming. I sense it. I dont know. Anyway, great job. Sparks are flying. Look forward to having you back with us here on the big board tomorrow. My thanks to john and to mike as well. That does it for closing bell. Fast money begins after this break. See you tomorrow. Understands the life behind it. For those whove served and the families that have supported them, we offer our best service in return. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. 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That announcement all but ensures that donald trump will indeed be the gop candidate for president. The possibility of a Trump Presidency becoming more and more of a reality to investors here. What does this mean for stocks. Seems like this week, though, weve had a little bit more of a defensive tilt in the markets. No question. Look, urn