Transcripts For CNBC Closing Bell 20160520

Yahoo bids, david faber says theyre in the range of 3 billion to 4 billion, but will marissa want to sell at that price, coming up. Carmelo anthony getting into it with macys. Theres one league thats in a laeg of its own. The shoe game is a little bit different. Its the right to consumers. I dont think people are going into stores buying shoes. Everything is job line, websites, apps. He had more to say about that, too. Well have that coming up after the bell. Also including why hes wary of investing. Remember his tech startup. He reminds me of kobe. Very, very bright guy, right, playing basketball. Lets start with oil. Its climbed more than 3 just this week, but is this recent surge in the commodity about to take a turn lower. Lets bring in our friend from rbc capital markets. Were getting close to that magical 50 a barrel market. What do you think . That could be sort of weighing down on prices once you get to the 50, 51, 52. But the thing to watch is were having mounting supply disruptions. I mean canada still remains down by over a million barrels. Will probably come back in the next couple of weeks. We should be hanging out in this price or moving higher actually. Even though in the past, helima, we started to peak. Yeah, but we didnt have this kind of supply disruption. Nigeria is gamechanger. If were going to be going down into peak season of nigeria, we have to stay at this price or go higher. What about iran gearing up at the same time . Great question. I think theyre reaching their capacity right now. Theyre not saying theyre willing to freeze production. We think its a sign theyre probably capping out what they can bring on barring a wave of new foreign investment. Whats going on in terms of saudi arabia. There were reports of how much u. S. Treasury debt they were holding. There have been other reports about their finances or iouss be paid. How does that go back to what they might do Going Forward with their Oil Production . Saudis have been talking about it. They keep saying everything is awesome in saudi arabia, but you get these reports about delays in contract payments and you start to wonder is there a little bit of a nightmare behind that closet. So i do think the saudis have to be concerned. Will the population accept austerity measures. I dont expect them to change their positions in the june meeting but theyre implying if they get a bit of a harder landing there. You say there could be a point where the price would go lower. What would cause that . If we get to 50 durjts that bring some u. S. Producers back into the equation . Some have talked about sort of hedging production once you get into the 50s, but it will take time to bring that production back online. Fear of producer hedging would cap the upside if you get you know, if nigeria starts to come back. But, again, i think the outages are the important thing to watch. If we stay at this level of out alk in nigeria, that could keep us in this price rage or higher. What about our neighbors to the north . Go into more detail if you could about how much supply has been affected by these wildfires and what that might have to do with the price here longer term . I mean right now we think its a little over a million. Its been basically shut in because of these fires. The companies do woonlt to restart so we expect that over the next couple of weeks you will start to see canadian production come back online. Youre all subject to changes in weather. We cant really predict the day its going to come back obviously. Thank you. Thanks, helima, very much. Lets get to the fed now, which has caused quite a stir in the markets this week and whether its standards for a rate hike might be lower than you might expect. Bob liesman has more. Is it strong . The fed market might have to get used to what is strong. Heres the reason. The fed just has a lower standard in the market when it comes to jobs. While markets are either 200,000, beneficials are the low lower threshold. The question will be not if its strong but Strong Enough for the fed to hike. Rosen gren said, quote, given broad demographic trends, normal or trend Payroll Employment growth is now between 80,000 and 100,000 jobs a month. And then look at january it yelin, the fed chair. Shes just around 100,000. So everybody wants more job growth. Its good for corporate profits and good for the economy. But if you want to know whats good enough for the fed, its best to lower your standard and they of job growth the way the fed does, bill. Steve, if i may, theres one thing about this that might be a problem. Its been so strong. You know, so regardless of whether 80,000 is the bar that needs to be cleared, the mere fact that its decelerating is a problem from a cyclical view, right . No, not necessarily. Indeed, kelly, a lot of wall street economists except us to downshift to a more sustainable rate. Nobody expects 200,000. There is a large pool of workers who maybe have dropped out of the work force or could be brought back in that are probably keeping this up at this point, but you raise the other side of the coin here, which is that what is Strong Enough for the market, in other words, that 200,000 rate, that could become increasingly worrisome to the fed. Steve, before you go, i saw a headline that said the new york feds instand read on gdp show 1. 7 , which is up just a half a percentage from last week hochlt u is that possible . Youve had a lot of decent data. Youve had the housing data today. Its come in pretty well. You have the retail sales numbers. They do it every week. I want to show you our cnbc wrap it up date, bill. The new york feds just a little bit late to the party. Were coming out at 2. 5 . And you see q1 tracking at 2. 9. Theres the rebound. It has a very long way to go with Second Quarter gdp. Its justified a decent rebound in the Second Quarter so far. The question is that enough . I think it is. I think 2 is a good mark on gdp and i think 150, perhaps, is probably good enough on jobs. All right. Thank you, steve. Steve liesman. Well see what happens. Lets get to our Closing Bell Exchange with friday, dow up 32 points. It was up 36 points at its peak. Rene norris is with us and jack perusian is with us and keith bliss from cuttonen company is at post 9. Keith, after all the volatility, here we are on this friday. What did we learn this week given whats happened with the dollar and the fed oil and all that . . What we learned is the fed is going to continue to keep the market off blachblts its remarkable to me you have some of the most dovish members in the policy making saying theyre okay with two, maybe even three Interest Rate increases in 2016. That is vastly different than what theyve been saying. You can see some of the internal indicators inside the market. The fact remains even though weve had a modest rally, we track this back. We have not moved anywhere from where we were in the fall of 2014. I think whats going to continue to happen, were going to move through. Wevt a couple of major things coming up. In fact, were seeing that in the past few sessions. Buying has been somewhat anemic and not a lot are willing to put positions on it. Jack, when do you think we might test those about this time . You know, i think its probably going to be a few months unfortunately. There are a few things were not prepared for. If you listen to people like art cashin who youve had on your show many times, hes indicative of what the fed thinks. That means the fed is not going to move. Between now and then were going to move into some rough patches. Underwhats happened there, if the fed moves two or three times, were talking about a multiple thats way too rich to be sustainable. Dont you think thats what happened on wednesday. The dow strengthened, gold went down. All yield lszs went up and the stockmarket went up . You know what that was . Everybody will tell you. Markets given us warning signals. That was the warning signal. It was telling you that the market was unprepared so when the fed does make some kind of a mood. If they do it in june, we could see a move slower in stocks. So, rene, where are you advising clients to be bracing for all of this . Ive been kind of preparing clients since the beginning of the year. Ive had to change my tune this year. Weve been raising cash since the beginning of the year, more for opportunities than anything else. We want to use the summer slump to buy some of the great disrupters in this space. Really. Yes. Can you give us a couple of examples on your Shopping List . I cant give you specific names, but i will say the high flyers that weve seen, for example, some of the consumer discretionaries that have been beaten up pretty bad in the financial, i would be looking this summer to start adding to positions. I think that the september, october, november months will be ones to remember. Most of the things that are going to happen, i think, will start in july up to the election. Youre not buying now. No. Lets face it. Theyre all pretty crowded trade right now, arent they . They are. Weve been lucky to have those in clients portfolios for some time. Weve not been adding to them but weve been putting together our list of issues to buy. I think the Second Quarter numbers are going to be really, really tough. The election is really going to play into this, i think, quite a bit, especially if you have some candidates talking about protectionist policies. Thats not going to bode well for americanbased Multinational Companies who have to import or export their services and sim plies. Keith i want to point out on another dae when theyre outperforming in terms of raw points today, why is that . I think you take a look at the transport move, its getting a little bit of a lift. I they you for pointing that out. You look at the transports. Watch the transport, the s p and vix will follow them. Youve about got to watch. Going forward equity markets hate two things. Were getting both right now. Id be very cautious and with step to the summer. If theyre weak and the fed raised in june, thats a recipe for a bad july. I see a nod from jack. Those who welcome the fed raised rates and are not worries. It only believes that theyre on solid company. Our own measurement shows gdp for the Second Quarter. Bill, remember, thats going to the best thing in a long time. Its like injections of steroids into a patient. Once we with draw that,ite going to look sicker. Were going through that and well go through it for the next few months. Once that happens, youre going to find great ebb questionties. Youre going to want to make sure you bought this kit. Tharchl you all. Applied material is one reason why the nape deck is pointing. The nasdaq is up better than 1 . The dons up only 50 points. What a story on tesla. The supplier is questioning whether they can meet ceo elon musks target. Phil lebeau looks aet the merits of their arguments when they come back. And the first marathon of bidding is other. What she wants to sell parts of the Company Coming up. Youre watching cnbc, first in Business Worldwide. 4 stephen king, the master of suspense and the macabre. I enjoy keeping people up at night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. 40 minutes to the close with modest gains for the major averages today although the nasdaq is doing well with a 50point gain. De deere, though, is falling. It cut its full year profit outlook. Lower Commodity Prices has been hurting farmers income and theres a glut of unsold machinery. You see deere down by 5. 5 . Some are questioning whether elon musk can deliver. Phil lebeau has been looking into the story. What did you find, phil . Kelly, people have been questioning this plan since elon announced it a month, month and a half ago. So the fact that suppliers are going around the country saying were not sure well be able to meet the deadlines for the model 3, not a complete surprise. Remember when you look at it, this is a very accelerated timeline for the newest vehicle coming out from tesla. In the next month or two, theyre going to lock in on the design and then in 2017 they plan to build about 100,000 model 3s mainly in the second half of the year and then really ramp things up in 2018, hitting production of the model 3, about 400,000. Remember, the target for all vehicles produced out at its plants in 2018, a half million vehicles. Thats not just the model 3. Thats also the model s and x. That means theyre going to add at least one, maybe two assembly lines, more stamping, another paint job, all the things that go with amping up production. Remember, they announced it. About 2 billion is what theyre going to need for the production amp. They raised most of the money. It priced at 215 a share. The question now, will tesla be able to meet a very aggressive timeline. Even elon musk said it. Look, a lot of people are going to struggle to meet the all parts in for this vehicle, but were setting that as a goal at this point. Elon musk has made his career on one hail mary after another, especially this one. This is the longest hail mary. Then you suggest the design hasnt been finalized. They dont know what theyre going to need from parts suppliers, right . Right. But its not going to be a complicated as the other two. The other thing to keep in mind, bill, most have been working with tesla, so they understand how its supposed to be working. If they can lock it in by june of this year, tesla believes they can get these suppliers up and running by june of next year. Nobody disputes its an aggressive time frame. Even elon musk has said that. The question is will we see it happening as quickly as taz la is forecasting. If we take him at his word, phil s it possible. I understand other Car Companies havent been able to do it this fast, but is it possible for tesla to do it . Anything is possible. Is it possible to have the model built by the second half of next year and some deliveries begin . Sure. Thats a big difference from, we will have 400,000 build in 2018 and a half million in production in 2018. Thats really the key question. Thats the level of production. Its not whether it can be built or delivered by next year. Its whether or not tesla can deliver as many as its forecasting. Yeah, exactly. Phil, thank you so much. Tesla shares over a small gain last check and theres a little more than 40 minutes go in this market where the nasdaq is up. The dow is up 47. When we come back, amid conflicting reports on how much bidders have been bidding. Were going to talk on whether Marissa Mayer wants to sell that. Also coming up. It was perfect. The big collaboration just came. Tmnt is teen aged ninja turtle movie. His turtle power movie is coming snup love thachlt well done. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Theres a place for vacationers than just a little time off. The ones who choose to go big or stay home. Come with me now. Where every amazing, despicable, wizarding adventure reveals moments that are truly epic. This place is made for those who do more than just vacation. Whoa go with me now its made for those who vacation like they mean it. Universal orlando resort. Welcome back. We talked a little yesterday about the hot stocks. Campbell soups down 6. 56 . Their revenues fell short. They say its more broadly emblematic as mike santoli pointed out as to where people have been hiding and ramping up. Yes, indeed. Were getting value on the yahoo business. The first round of bids are in the 4 billion to 5 billion, which is higher than the 2 billion to 3 billion number reported earlier by the wathe street journal. Still its well below activist jeff smith. Lets remember. Somebody could easily pay 2 billion, 3 billion, 5 billion, 8 billion for this asset if they cared enough. It depends what theyre going to do with now. Lets bring in erin griffeth. No relation. Seen your writer. Welcome. Hi. Where do you see it . On the one hand, it was bidding up d. I mean its really hard to tell. Theres a lot of noise around this auction. Were seeing reports. I mean in the beginning bankers we assumed it was bankers. They could get as much as 10 billion. I think thats a little crazy. The patents are worth 4 billion. I think were starting to see more realistic numbers but 2 billion is really, really low. It behooves anybody. They dont want to show their hand right. Right. Wait for them to narrow it down and then throw in the low ball. Even at that, nothing has ever been easy for Marissa Mayer at yahoo right. Shes been there three years which is really a long time to put her turnaround in place. Her reputation wont be hurt because if she wins shes a hero, she turns it around. If she fails, theyll say, nobody could have saved yahoo . The reports that came out about her management style and shortcomings kind of shows that maybe her reputation will be damaged in the end by this. Could the business be sold for piecemeal . Yeah. Thats one of the things. They say its going to be 2 before bl 3rks billion. Nobody knows. Theyll say take out tumblr and figure out to monetize them, cut costs like crazy. That could be one option that were talking about here. We posed this question earlier. Is it possible she doesnt want to sell . I think it is definitely possible it doesnt sell. She wants to keep doing her turnaround plan. Even though investors hate it and even though theyre operating at less than zero, i think she would like to keep her job. Does that affect the price she could fetch . Yeah. There were a lot of reports early on she wasnt providing enough information, being transparent, and she made it clear in the last earnings report, listen, im taking this seriously, were trying to sell the company and she let them have four new board members. I think she knows if a private equity fi buys this company, shes not going to have this job anymore. Is this still verizons to lose . You saw what they did with aol and they could do the same thing here with yahoo . So i think that makes a lot of sense. They talk about Warren Buffett pairing up with jones. Alibaba, what happens then . Well, its complicated. Theyre currently trying to spin themselves off from an ally ba pa stake in a very complicated deal. Im sure there are a lot of lawyers working very hard on the many possibilities and its beyond my pay grade. Like we said, nothing has ever been busy for Marissa Mayer in this deal. If verizon buys it, she could do well. And she could make 55 million . She has a huge golden parachute but i think she wants to prove to the world she can actually do this because shes a very determined executive. From day one, thats for sure. Erin, thank you for joining us. Erin griffeth. Sue herera has a cnbc news update for us. This after receiving guarantees that guzman would not face the death penalty. His lawyers have 30 days to appeal the decision. Houston officials agreeing to drop the charges of him stabbing a 10yearold boy. This after they found evidence that he was somewhere else when the boy was walking home from school. After overstating fuel efficiency. They will receive debit cards between 450 and 900, gm adding it will not have a Material Impact on its earnings. And an Old American Airlines building demolished in texas this afternoon. The crews imploded the building to make way for a new American Airlines headquarters. The demolition has been in the making for six months. Theres just nothing cooler than watching that. I saw it live. That was very cool. Thats better than watching a slow speed chase on the streets of los angeles. We havent had one in a while. Thanks, sue. You too. Were into the closing half hour. Well tell you what a trader is watching on the close of the final day this week. Later, apple unveiling a new retail store concept in San Francisco, but is it too little too late for iphone sales . Well talk with top analysts and retailers. Stay tuned. Welcome back to closing bell. Weve got a security issue at the white house. President obama is not there. Hes goffing at the air force base. This incident began unfolding about 15 minutes ago. Youre looking at live pictures. Thats one of the white house complexes. You see a lot of Police Activity there. What we know from a tweet now from the u. S. Park police, theyre reporting in their tweet that there was a shooting on west executive drive. They say there are en route to 17th and pennsylvania avenues. So that is very, very close to the white house complex. West executive drive actually runs all the way up through the intersection between the white house and the Old Executive Office building now known as the eisenhower executive Office Building that is adjacent to the white house. So if there was a shooting at that location, were talking about a situation thats very close to white house indeed. Were seeing videotape shot by reporters on campus at the white house which shones secret Service Agents on extremely high alert with what appears to be sighting rifles up to see whats going on and helicopters ahere to be near the white house campus and were told that the reporters have been told to go to the basement of the white house and remain in a shelter in place. The White House Pool is traveling with the president. They report that theyre at Andrews Air Force base. The president , as i said, is not at the white house right now. Thats what we know right now. We have an unfolding situation right now. Potentially scary situation, but it looks like police are all over it at this point, guys. Any idea how long ago this happened . I would say about 15 minutes ago. Im just kind of guesstimating here. We saw some tweets from reporters who were being usher down into the basement. I can tell you inside the White House Press briefing room, its very common for the white house to be put on lockdown when there are suspicious packages as weve noun the past couple of years, a number of fence jumping incidents. In those situation as what happens is they simply lock the doors and tell everyone to stay in place. Its unusual of what we see in tweets of reporters being told to go to the basement of the white house, thats the lower level and hold there and shelter in place there. Thats not necessarily the kind of bash weve seen from the secret service in the past. Possibly theyre taking this one with more seriousness than the typical misplaced bag on pennsylvania avenue that does happen from time to time at the white house. I can tell you from the posture of the secret Service Agents in the video, theyre taking this very seriously and theyre moving in an alert way around the white house grounds. The snipers on the roof of the white house on a regular basis had their long guns up, were using their sights to try to get Situational Awareness and figure out exactly whats going on and what were seeing right now is police converging on that area below the ellipse. Youre looking in those live pictures of the helicopters leaving the ellipse area of the south of the white house. Thats a u. S. Police helicopter. Well have to find out whos on board and what hanned. Eamon javers. Thank you. Those stocks trading higher today and weve got a lot to think about as far as the price of oil and the fed this week, right . Oh, sure. And with less than half an hour go in this hour lets bring in st steve grasso. Did you see anything . I did see a little bit of a movement off the highs. Approximately about 15 minutes ago when you had just asked when the news came across the tape and i do think that we came off just a bit, but after people analyzed what it is. People will sell first and then ask questions. Of course. You have the oil and the fed. What you do think is going to be the key driving the stock to close this week into next week . Its going to be oil. Everything is all linked to the dollar. But the fact that we could not overcome that 50 mark in crude means a lot to me. You had nigeria. Youve got the canadian fires. Youve got iran still on the table. Youve about got libya. So theres a lot of things to be concerned with. And the fact that we could not take out that 50 mark means a lot to me and the bulls should question their bullishness. Really. So im just going to say, if we get to 50, thats when stocks tank . No. No. No. What im saying is i think the market has misinterpreted the rally and crude to be bullish and theyve used that as the barometer and when they see crude ticking up, instead of it being an isolated incident and to sell it once it gets to 50, they get misconstrued. I think thats the main thing. Watch oil. Watch the markets. Flat on year, 12. 43. I think it will probably rally from here. Thank you. Thank you. Well let you. 20 minutes left. The dow up 55 points right now. Well go live to the nasdaq for a check of the big movers there in just a moment. And later that bubble does make you wary a little bit wlabs going to happen. So we just kind of are taking our time and seeing, you know, whats the best fit. Talking about a tech bubble. New york knicks star Carmelo Anthony discussion his jitters. You wont want to miss it. Thats coming up. You wouldnt order szechuan without checking the spice level. It really opens the passages. Waiter. Water. So why would you invest without checking brokercheck . Check your broker with brokercheck. And well have to use like double maybe more im going back to the store . Yes you are. Dish issues . Get cascade platinum. One pac cleans tough food better than 6 pacs of the bargain brand combined. Cascade. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com welcome back. If these hold, its whats next. Whats moving there, bertha . Everything tech is moving. Its really interesting what a difference a day makes. Today were seeing some Risk Appetite particularly for large cap tech. Cisco had that great report today. Were seeing a bit of the delayed halo effect. Apple snaps that fiveweek losing streak as well. Its up 5 for the week. Also netflix having its best weekly gain in about six weeks or so since the start of the quarter. And Western Digital among the best performers this week here in terms of nasdaq. One part of it having completed its acquisition. Today its getting a little bit of a boost. Applied materials with that strong outlook for its third quarter, lifting the entire sector, which this week has a very strong recovery as well, up 5 overall in the sector for the week, but weve seen a really nice rebound for biotech. And its not something that is too surprising in that this is the beginning of the leadup to asco which happens on june 3rd. We had the acquisition in this space. Thats again whetting a little bit of Risk Appetite back into biotech. Back to you. Thanks very much, bertha coombs. Lets go back to eamoeamon jave. What do you know . Pete williams reporting now that the incident occurred outside of the white house grounds on the west side of the complex. They believe that this happened at 17th and e streets which is right adjacent to the white house but not on the white house grounds itself. Pete is reporting that one individual has been shot in the chest and has been taken to the hospital. Weve also got a tweet from d. C. Fire and ems with an update saying the shooting was at 17th and e street northwest. One patient transported with critical injuries to a local hospital. Obviously you can see the Security Response there is full bore at the white house and across washington, d. C. , at the u. S. Capitol just down the road, down pennsylvania avenue. Theyre saying that a Capitol Police Spokesman Says that theyre monitoring increased visible presence but all buildings at the capitol remain open on the Capitol Campus for now. Clearly a very visible and tense situation in response to a shooting incident next to and nearby the white house on the west side but outside of the white house grounds itself, bill. Were watching markets. As mentioned, there wu a little bit of o a move when the news was first reporting but now investors are shaking it off as this was signs that perhaps no immediate risk. Art cashin just signaled to me that the market on closed orders, only 250 million to the sell side. Well see if that has any impact going into the close. Here it is a friday. It could only mean that wall street veteran david darnst will give us his watch list for the week ahead and that will happen when we come back. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov 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. 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. Sign up at etrade. Com and get up to six hundred dollars. Welcome back. It could be higher. Diana . Its because the market needs more homes for sale, simple as that. Theres plenty of demand for homes especially on the lower to moderate end. Theyre flying off the shelves faster than ever because there are so precious few of them. You see where we need the most, is supply is shrinking the most. Firsttime buyer demand bounced back in april, 32 of all sales but these buyers need lower priced homes. They should be 40 of the market. Low inventory continues to push Prices Higher and the realtors say the gains are accelerating. The median price was 232,500. Thats up 600 from a year ago. Just because the skys the limit doesnt mean anything. Case in point, right here. Other homes in this d. C. Neighborhood are selling in days. This one was likely priced too high. Back to you guys. All right, diana. Thank you very much. Diana in washington. Joining us as we head toward the close, we have eight minutes left. I understand this is going to be a bilingual set . Its taking off good. Lead economic indicators, those are looking better. So thats a good backdrop. They said when you leave the big apple, youre not going nowhere. Without profits the market cant go anywhere. So my acronym for this year is r. R. A. T. E. S. A return to normalization of levels. It seems like the fed meeting, theyre left. You can get from an acronym sometimes a way of grachsing these things. Is this a self serving ak crow name . Its an abyss. It goes further down. It cascades down. Thats the french term for what acronymic insight is. Very selfconscious. Dollar and energy in oil prices. And finally and very importantly bank stocks had a good week. They actually like the higher Interest Rates. They love it. The dollar going up is not something they want to see. Theyre trying to tread a very careful path there. E is earnings. The biggest thing of all, china said were going to switch from a escalade, Cadillac Escalade to driving a chevrolet. That means theyre going to switch from monetary stimulus to struks real form. They both use gasoline and debt. But china, i think this is one of the most important things. Its a big shift from their version of larry summers. You saw about this article on the Chinese People where he said were going to move in a different direction. Right. It will be an lshaped economic recovery, but were going to shift, and i think thats gotten great Global Implications as we lead up to this japanese summit may 26, 27. What was that phrase in . Mise en a byam. I feel like ive lived in an extraprint. Thats exactly what it is. A hand drawing in a hand drawing in a hand drawing. Thank you so much. Thank you so much. We have a countdown coming up. After the bell, dont miss that oneonone interview with New York Knicks Carmelo Anthony who it turns out is quite the flourishing businessman. Youre watching cnbc, first in Business Worldwide. 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. 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These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. 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. Sign up at etrade. Com and get up to six hundred dollars. Welcome eamon javers in wa. It appears to be all other. Remember, president obama is not at the white house. Hes out golfing at the Andrews Air Force base. A white male shot in the chest near a security checkpoint outside the white house compound. Weve got a sound bite from an eyewitness who saw it unfolding and talked to nbc news. He heres what he had to say. He was carrying a gun. It was a silver gun in clear sight. Walked through the fence line. They immediately tried to stop him and came up to him, yelled multiple times, stop, stop, stop. He kept ignoring them. Drop your gun. And he walked toward the officers. He just kept on walking in. Refused to stop. And the officer after they approached about the third in, they shot him. And, bill, what were told is that person has been medevacked to the hospital and officers are now looking for his vehicle somewhere near the white house compound. Thats what we know as of right now. All right, eamon. Thank you do very much. We have a little bit less than a minute. Dominic chu. Closing out the week. The dow avoiding a fiveweek slide. You can thank Applied Materials for that. It put in a bid to the semiconductor market. It makes stuff that makes computer chips so all of a sudden a good moving indicator. But, remember, today is also an options day here at the New York Stock Exchange. Were seeing a bit more volume than we normally would, especially around the close right now. But, again, were well off our highs so far today. All right. What to make of a volatile week with oil and the fed. Back on the table again maybe for june. Theyre going to talk about that coming up next here on the closing bell. Have a good weekend, kelly. Thank you, bill. Welcome to the closing bell. The dow up 63 points on the bell. Thats just over a third of one . Much better parms than the s p 500. It was up nearly twothirds of a percent. You heard about it. 1. 2 . Added 57 points. Coming up, basketball star Carmelo Anthony talks about everything from his Business Ventures to the teenage mutant nip. Turtles. Well tell you that. First joining the panel, mike salsan tolle along with kevin new mark on a friday and with more on todays action guy adami. Its great to have everybody on board, mike. Went out okay here. I guess the nasdaq was the real story. It really was in terms of todays action. I think the bigger story really for today is no downside followthrough. You had a lot of these threats where the bottom of this trades threatened to really give way and it didnt happen. I dont know if that means in any larger sense the bears have missed an opportunity here with the fed coming a little bit hawkish, but it does seem as if the markets getting compressed in this range and it probably has to find some reason to break out of it. But so far once again volatility remains very tame and all those things you would look for to say, hey, trouble is brewing, theyre not giving you a clear signal. A couple of things are happening. May could be the biggest month ever for investment grade. Usa today pointing out a third of cash held by u. S. Companies, held by just five of them. The big tech ones youd expect including aur oracle. And then we come back to Campbell Soup. Everyone looking there. Were coming back to Campbell Soup . Youre going back to Campbell Soup. Im not going back to Campbell Soup. The story for me remains the banks and bond market. Nobody believes theres go to be any economic drought or any inflation really for the next five or ten years. I mean its hard to believe were still in a very odd strange place and thats one reason why the market doesnt go down. When the 30year bond is yielding, 30year treasury is yielding plus or minus what the dividend yield is, dont expect a lot to happen. I think thats basically what youre seeing. But it almost seems like the average is concealing how split people are in a way and we highlighted this earlier in the week. You had a couple of data releases that interpreted on the one hand they were picking up steam and on the other steam, were heading into a recession. So i think whats interesting, theres a lot more risk kind of embedded in the positioning of this market than people maybe realize. I still dont understand what an investor longterm bond is thinking. I dont understand what someone is thinking and i cant understand i mean i understand i dont understand where they expect to get real positive no. Theyre expecting to get their money back. Maybe theyre expecting a little bit of deflation. But, kelly, to your point in terms of internally what this market is doing. Even on a day to day basis, when the market is not moving much on the indention level, its either telecom, utilities or staples are the leading or bottom sectors. Its not really risk on risk off. Its the bond market because of Interest Rates. Theyre trading on Interest Rates. On that note, i dont know if we have the graphic. To your point, there was a graphic earlier that showed a 1 percentage point increase in a 40year japanese bond drops its value by 25 its crazy. But to own a japanese bond you basically have to believe that theyre in a deflationary spiral that theyll never get out of it. If we had a one percentage point drop, the value of that thing also explodes, so guy adami, thats whats so interesting. I dont want to say leverage. Thats not the right word. But youre exposed to dramatic increases or decreases depending on which way Interest Rates go. I think leverage is a fine word to use. Theres a lot of crazy things going on. You have to believe in this deflationary cycle continuing in. Which, by the way, it shows no signs of abating. The good news for the market today, theyre not moving the semiconductors. I know we talked about it yesterday. That stock was up 14 . Dragged the whole space up. Thats a pretty good sign because a lot of the bears. I was in that camp pointing to the semiconductors is a reason to be negative on the market. Theres a comeback there. Flip side of the coin. Whats the flip side . 210s. Your yield remember, december 07, what that what came out of december 2007. Again, not suggesting thats where we are, but thats the last time 210s were here. Now flirting with 40 on the downside which potentially could bode well for the crude oil. Where does that leave you know, whats interesting is for all this talk about bonds and how you can get really whipsawed around here on whatever happens next with rates, people still dont like stocks. The sentiment is terrible. The outflow continues. Thats probably the only reason i like them. Its true basically the bond market has been for 30 years a oneway bet. I mean nobody has lost really with some one or two exceptions in the past 30 years a lot of money certainly in government bonds. And until that changes theres going to be no reason for people to get out of it. Hang on one second. Were getting more on the security incident at the white house. Ime eamon javers, what can you tell us about this . The metropolitan police, d. C. Metro police say it was a secret Service Officer who was involved in the incident, not one of their own. A secret Service Officer. The incident happened as we have been reporting near the white house but outside the white house grounds. This is a heavily fortified area of washington, d. C. There are security entrances to the white house complex at various points along the way there. Those are heavily fortified bulletproof glass, et cetera and heavily armed secret Service Officers there. We know the white male who was struck in the chest has been medevacked away. Well follow this and bring you more details as we get it, kelly. Do we have any idea what he was going for, eamon . We dont. According to the eyewitness, he brandished what appeared to be a weapon, a silver gun, described as a handgun by one witness, and moved toward the secret service and was told to drop the weapon, told to drop the weapon and told to stop. He did not. At that point, thats when officers fired at him. Not clear how many rounds were fired. Not clear who exactly shot who in all of this. Well have to parse through all this as we go through the next coming hours to figure that out. But clearly somebody who went up to a checkpoint, a secret Service Checkpoint and did a thing they tell you never to do, which is fail to obey orders. Thank you, eamon, for monitoring the situation in washington there. Well, between markets and fed minutes, it was a wild week. Lets get to dominic chu. Next week might bring new surprises and he has a preview of what investors may be watching. Hey, dom. Were going to see if any of this stuff on the micro and macro next week can break us out of the trading range. Lets talk about corporate stories first. Youve got 13. The focus will again be on the consumer. On tuesday youve got the likes of auto zone, doityourself auto repair. And best buy and tiffany on the luxury side of things on wednesday and costco on wednesday as well. Tiffany in focus because of that luxury into the market. We heard richemont could see headwinds. Those will be things to watch. On the eco side, the lites here on tuesday, more home sales. The big housing data coming up next week as well. On thursday as usual. Jobless claims. Durable goods also released on thursday. And then on friday, well get the second reading of First Quarter gross domestic profit. Well see if it does any better. On the ecofront. Thats what weve got. Lets tur to the speakers. Here are the three you want to Pay Attention to. On monday, st. Louis fed john bullard and thursday Jerome Powell and flid, janet yellen herself will be speaking at harvard where shell be receiving an award. All three are voting members of the fo 1c this time around. Aisle throw in one more here. Were anticipating what could be one of the biggest ipos of the year if it comes to fruition next week. This is u. S. Foods, which would be the second biggest distributor in the united states. Theyre talking a 21 to 24 price range. If it ranges around there, it would be around a billion dollars. Totally 5 billion. If it sticks to that, kelly, guys, it would be the second biggest ipo so far this year and the single biggest nonreal estate envestment trust. Back over to you guys. I think its funny, it looks like us weekly, not us foods. Antem, americas next model. Those types of deals, they know what they should trade for, knows what theyre worth. I dont expect it to have a huge pop or drop. Guy, what are you going to be watching . Tiffanys well, there are a lot of things next week not to mention dominic chus unbelievable reporting from the floor. Tiffanys has been interesting. Since 2015 it the stock has been an unmitigating disaster. It hasnt been that great since. Has the high end flattened out or bottomed out . I think its going to tell the tale next week. Parting word . I dont know when its going to happen. Somethings got to give in this whole negative Interest Rate thing. It might take a while. We hope the economy is strengthened. Yeah. It feels like its going to come from overseas. Somewhere around the globe, they realize. The bank of japan is in a total culdesac. Theyre basically everybodys running up against limits. They have to start buying Corporate Bonds first. Theyre going to take it to the next logical place. Thats true. Thanks for joining us. Later, kel. Later, guy. In fact, next hour, theyll be asking thomas lee what he thinks the street is missing about the rally. Thats again at 5 00. Apple rebuildiunveiling the of its retail stores. Should the company be coming up with something more innovative . Thats next. Carmelo anthony may be a superstar on the Basketball Court but hes got a key mind for business. First in the Business World and now fashion. Coming up, what inspired his latest fashion and, of course, get his take on the future of the New York Knicks. Youre watching cnbc first in Business Worldwide. The call just came in. Shes about to arrive. And with her, a flood of potential patients. 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. Our partnership with habitat for humanity at pg e, we believe solar should be accessible to everyone. Allows us to provide the benefits of solar power to the types of customers who need it most. Pg e provided all of the homes here with solar panels. The solar savings can mean a lot, especially for lowincome families. With the savings that i am getting from the solar panels, its going to help me to have a Better Future for my children. To learn how you can save energy and money with solar, go to pge. Com solar. Together, were building a better california. Welcome back. Susan li, whats happening . We know the oil and gas division has been a drag on mcmorans earnings. Its mostly on the back of the declining book value of its oil and gas assets. Back to you. Exactly. I wonder if because the stock itself has rebounded as the mining stocks in that whole space has come back, maybe it seems as if they dont necessarily have do this. It seems like it could be a bit of a desperate measure when the Overall Company might seem like its in a worse spot. Apple is gearing up to open a store in San Francisco tomorrow. It will include a genus grove and live trees. Were joined by tim ba heron of Creative Strategies and mark cohen now with columbia business school. Great to have you both with us. What do you think about this jazzy new store . Its a great design. They have these giant doors that open up. The idea is, look, instead of just being a retail scepter, let it be a Gathering Place. Its one of the most beautifully designed buildings ive seen so far. She says she wants people to say to each other, lets meet at apple almost like its starbucks. Does that help the company longer term . I think more so than starbucks. They have a higher valued product thats far more important and that customers dont buy their products every day as they would if they were buying a cup of coffee at starbucks. Look. The apple store is a brilliant 15yearold strategy. We know how successful theyve been. They got it right the first time which is unusual. Theyve been fastidious about materials and housekeeping. The stores look as fresh and inviting as when they first opened. And yet their fortune looks so different than ten years ago. Does this jazzy store concept get to the heart of what this Company Needs to do to stay relevant . Well, this company is extremely relevant. What ive seen is theyve expressed an investment in their own strengths. Theyre already a community center. Theyre already a Gathering Place for customers who do more than just come, look, shop, leave. The seating areas that theyve apparently created, the incredible expansiveness in lighting and access is an expression of their success to date and you have to give them a tremendous. Amount of credit leaning forward. I have to say one more thing. Wi dont know whether the rumor of them launching an apple car will ever come true, but if its actually being considered, e im sure this store has a space where that car is going to be showcased. What do you guys think . I agree with all of that. Its not something that almost any other retailer can take as a model. Its definitely an acknowledgement. My kids ask to go to the apple store to play on the devices. Not to buy something. Thats a different thing. By far the highest square footage. Theyre kind of playing from a position of strength. I just dont know if it moves the needle for the Overall Company. Thats the issue. They have great Flagship Stores but at the end of the day, the companys fortune is not going to rise and fall because they have a new store. What do you say, tim . It does help them service their customers better and i think thats the real key. Their formula lets them come in, touch, play, and get questions answered is why this succeeded in the first place and i think that this type of an environmental is even more conducive for that. Thats a good point and certainly looks like a need place to hang out. Tim, thank you. Tim bajarin and mark cohen as well. Cyber criminals striking again. Coming up, weve got the details on this latest heist and what it says about the safety of our global system. First, nearlying a trillion. Up next well talk about whether that is a good or bad sign for the economy. Stay tuned. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com welcome back. We start with susan li on lending club. Its interesting that jeffries has been brought in. He was one of the buyers on some of these loans that led to the ceosous ter. There you go. Lendingclub looking to get some of its liquidity back on the books. This is interesting in terms of whats going on with the company in trying to place the loans. Its interesting. Citigroup was reported to have said, no, we dont want these particular loans originating. Obviously we need to have that pipeline open and be able to finance themselves in that way. They might as well have one anchor, you know, kind of firm on the street to do that. Thats true. I still wonder if thats enough for them. Is it shored up enough. The problem is that what happens with all Financial Institutions is when your share price goes from 20 to 4 bucks you get these prices of confidence and thats the kiss of death. And if youre a market place lender and the market place moves against you. News out today the americans are carrying nearly a trillion dollars in credit card debt. Its close to the peak of just over a trillion. Who does that mean for our economy . Great to see you, chris, and do you read this as a good sign or a bad one . Good to see you, too, kelly. For now its a good sign. Its a sign that consumers are feeling a little bit better. Theyre more comfortable spending money. And were coming off a really, really low level historically. So i guess the question is, though, we go back to 2008. Thats the time when everything started to go wrong, right . While it might be a healthy sign, is it still some sort of like indication that weve gone too far or weve reached this dangerous point in the credit psych snl. Whats happening is weve now seen credit card balances rise for about a year and a half. They typically do rise during expansions. In fact, before 08 they typically rose during recessions, too, just at a slower pace. Right now the rate of growth is relatively staid. Its about 6 . People are using credit cards to pick up some of that slack. So i dont think theres anything to worry about just yet. You do want to keep an eye on delinquencies right now. Right now theyre near historic lows. If those start to pick up. Thats when you should start to worry. That seems to be the bottom line whefrmt it comes to credit creation, its good until its bad. The economys 2 trillion bigger than it was in 2008. The mortgage debt is about a trillion below what it was in 2008. So as a percentage of the low it seems like Household Indebtedness is not at a point. The sub prime borrowing problem that arose in 2007 or the years prior to that was really around mortgages more than it was around, you know, car loans or some of the other lending or credit card lending. Overall it was a credit bubble. I dont think thats whats going on here. Is there any parallel to make toward the corporate space. We talked about it. Stanley drunkckenmiller has bee warning about this for a year now. Its a very different picture. On the corporate side we havent had Earnings Growth for a few quarters now. There was quite a bit of borrowing in the energy space, which was going gangbusters and now obviously isnt. Household Balance Sheets on the other happened are healthier than they have been in 25 years. The one, i think, note of caution is it costs 18 to carry creditlet card debt, home, 5 . This is a much more expensive way to borrow. Thats a point. Chris, thanks for joining. Youre welcome. Thank you. What a great business to be in. Which one . The credit card business . Yeah. They borough row at its one the few Good Businesses. The run on assets is better than a lot of the parts of the banking business. Its not like the street thinks this is any wonderful business, but, yes, you have that good spread while it works. Buying them up . No. You love the business but youre not getting involved . Ill wait till Interest Rates go higher. Might be waiting a long time. Time for a cnbc news update with sue herera. The white house placed on security alert after a shooting on the street right outside the white house. A white male suspect brandishing a gun was shot in the chest by a secret Service Agent and then taken to a nearby hospital. President obama was golfing at Andrews Air Force base at the time, but he was briefed on the situation. Supporters of shiite cleric muqtada al sadder rallying for reforms. Iraqi security troops and riot Police Used Tear Gas to disperse the crowd which left scores injured. Camille cosbys deposition from february was unsealed. She invoked her spousal privileges not to testify about conversations between her and her husband bill cosby. That deposition lasted approximately six hours. A 1996 hummer once owned by tupac shakur sold for 337,000. It comes equipped with a tur bediazen v8 engine and an interior. The license plate, yaknpak comes all included. Thank you so much. We have a news alert on valiant. Valeant putting out an alert. Brian stolz resigning from valeant effective may 30th. The same week they said theyre going to pay three other executives Retention Bonuses of at least 3 million. Interesting news from valeant. The shares, it doesnt look like theyre trading after hours. Thank you. Meg tirrell. Mack image mirror on the wall. Microsoft is creating a mirror that can tell you whos smartest. First my interview with nba star Carmelo Anthony. How much longer he plans to play. A fair price, quality service, and that in a new house, you probably dont share the same tastes as the previous owner. [ dolphin chatters ] so when you need a little house painting or a complete remodel, well help you get the job done right, guaranteed. Get started today at angies list, because your home is where our heart is. Welcome back. New york knicks forward Carmelo Anthony is taking his skills off the court. In his latest collaboration hes working with macys and his teen New York Stock Exchange mutant ninja turtle fashion line. We talk about that and a whole lot more in this interview. Take a look. I had the opportunity to just get involved with nickelodeon. Weve been kind of in contact for the past couple of years trying to figure out where the relationship fit, and this was perfect. The tmnt was perfect. Tmnt is the teen age mutant ninja turtle movie. Yes. All of this came together at a perfect time. They were filming the movie. I was working on the kids line with nickelodeon. I got an opportunity to be have a cameo in the movie, so it all tied in perfectly. Should we expect more in terms of fashion and retail . Well, well see how this goes first. One step at a time. Everybodys trying to figure it out right now. Theyre trying to figure out whether macys is going to make a go of it long term and whats happening with all this internept disruption and things. What do you think in. I think if people want it, theyre going to find it, whether its in the Traditional Stores or online. Whether they want it, theyre going to. Even foot locker was struggling. Maybe people are ordering shoes direct. The shoe platform is different. I dont think people are going into stores and buying shoes anymore. I think everything is online, website websites. They have these zbik sneaker cons going on out there. Theres a lot of didnt ways you can get sneakers than goer to the brick and Mortar Stores again. Do you think people will ever do it again or is it game over . I dont think its ever game over. Its like they say nobodys watching tv but you look at the ratings and some are skyhigh. I look at it the same way. How about the investments youre in. People are worried whether things have peaked. Its interesting. You look at us at the tech world and people say its a bubble. The bubbles going to burst soon. They say carmelos in involved, theres got to be a bubble. The bubbles going to burst soon. But then you look at investors, and they still invest in hundreds of millions of dollars in startups. What are you learning that makes a Good Business . Im sure there are ones that surprise you and others that youre wondering why isnt this going so well . I think for the most part its people believing in it. Thats why you see some of these companies, you dont know the name. You may not be familiar with it but then you look over and see they raised 20 million in the first round or they had 200 million, you know. Youre like, what kind of company is this. But thats just the way it is. If people are feeling good about it, if the vcs are feeling good, theyre going to invest the money. Any new investments you can tell us about . Not as of late. Is that because of lack of opportunities or youre being selective . No. Its being selective. The opportunities are there. To be honest, the bubble makes me kind of wary a little bit about whats going to happen. Were taking our time and seeing whats the best fit. How does it feel right now going to the nba playoffs are happening. The warriors are out there and clevelands out there. Whats running through your mind . I need to be there. Im sitting on the oemg f my seat and looking at that. Sometimes i have to turn to tv because your competitive spirits start coming out. Sometimes i watch. Sometimes i dont. Do you think Jeff Hornacek would get you there . I dont know. Hopefully. Is it a done deal yet . I dont know. Do you know him . I dont know. I dont know. I just know him as a player. What about phil jackson . What about if he were to leave. Any concern . Theres always rumors that hes going to leave and that hes saying hes going to stay. He is 70 years old. Yeah. At that point, hes got to do whats best for him when it comes down to that decision. But in the meantime, hes here. Hes still working for the New York Knicks. Youre invested in new york in the true sense of the word. You came back here and youve done so much to just, you know, get involved in the finance side of it and the tech side and the startup and youve got your charities, a ton of Different Things going do. You feel like thats kept you here in a bad way . Do you look back and say i should have been more nimble and flexible . Well, i think some people might say i should have been selfish and kind of thought about myself, but when it comes down to just basketball and winning and having a chance to go to a place where they put me in a situation where i have a better chance of winning right then and now. But, you know, like i said, im here in new york. You know, so many different opportunities for me here in new york, and i try to take advantage of that. You just told me were talking about the fourth Olympic Games this summer for you. Fourth. Fourth. Thats unbelievable and thats a huge accomplishment for any athlete in any sport ever to be able to have that kind of record. So how much longer . You know, whats that next thing for you in basketball . How much longer do you stay in the game . I dont look at it like that. I look at it i think im in the prime of my career right now. I have years to go in this league. I look up and i see guys playing 20 years. I mean thats a goal of mine, to play, you know, 20 nba seasons. What about social media . We f we can talk about the business of basketball for just a moment, its flourishing with the way people love to share moments where there are great moves and great dunks. I dont have to tell you. Basketball as a sport is flourishing. But do you think its something that needs to be streamed on twitter like nfl . What nfl did streaming the game on twitter, the first of its counseled, it was ground brake. I dont think people knew what to expect when the announcement came out. I still dont know about the viewerships and ratings and all that, but from an idea standpoint, i thought it was brilliant. What about Virtual Reality . Virtual reality is big. Already . Already. Its already big. How . Its already big because people know its something but they dont understand. I dont understand it. Maybe you can explain it to me. You know, for me, i think in the next couple of years youre going to see from a sports standpoint, youre going to see a lot of Fan Engagement through a Virtual Reality. Youre not going to have to be sitting courtside to enjoy the game or feel like youre part of the game or feel like you have a courtside seat. You can sit home in your living room and still be on the court sometimes. That might be much better than actually spending that amount of dollars on a courtside ticket. Athletes today who are still in college, does that need to be addressed as an issue of how theyre making money, you know, let them open up that whole world . What are your thoughts about that . For me if i could talk to some of the guys and let them know you know, figure out what you want your brand to be first and build it up instead of letting somebody else tell you what your brand is about. Carmelo anthony there of the New York Knicks. Wow. Bob costas had better watch out. Very funny. You really knew your stuff when it came to sports. Listen. My mom was a her last year at su was jim boeheims next year. Oh. So there is a connection. There is. Interestingly enough, we also asked him, how do you spend your time and he emphasized it is court first and Everything Else sort of follows from that. Its good to hear. Its impressive that he thinks he wants to play that much longer. I dont know if the nicks are ready to reup him after his deal is over. Really, next year. Its going to be something. The question is it going to be everything, which i think is what some of the Silicon Valley folks are talking about. Youll have to see with jonah. Well know. Youll know its for real. Time for him to leave the house. San francisco watch out. San diego is cementing itself as a startup haven in its own right. Well get a look at the ecosystem in the other bay area. But first there was a cyber attack on an International Bank last year that no one knew about. Now Fund Transfer swift is urging clients to share information on hacks as soon as possible to keep money safe. The fallout from the third hack attack is next. You never want [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Im here for the new iphone. My horoscope told me i should get one. Well it just so happens that right now, were offering a really great deal on the iphone. Oh, great. So your horoscope said buy the new iphone . Oh yeah. It said, this day will be fairly eventful. Yeah, i mean theres no other way to interpret that. Totally, right . At t has a better reason to get a new iphone. Switch to at t and get up to 650 in credits per line welcome back. Theres another International Bank reported. Lets get back to eamon javers on this one. Hey, eamon. Think of swift as the central nfs system for the financial system. Its the Electronic Messaging Service that thousands of banks around the world use. And what weve learned over the past several weeks is the whole swift process can be vulnerable to hackers. We saw that in play during that 81 billion bank of bangladesh heist last year and just last night we learned from reuters about a new attack in which attackers got apparently about 12 million. Zwruft this morning swift put out a notice to its customers warning them of the cyber vul never bltds asking them to share information. Heres what they said. We speflkly remind all users to respect their obligations to immediately inform swift of any expected fraudulent use of their institutions swift connectivity. Why is that . Because it looks like a lot of the banks were not sharing information about cyber heists and hacks with swift itself, even when swift was involved in the hacking attempt. So thats something swift wants to get its arms around. It wants more information about it. Raising questions up and down unclud iing bill dudley. Heres what he had to say. We need to continue to control our internal environment because as we see the threat environment is always changing so we always have to ask ourselves the question are we doing all the things we can do to make sure our systems are as safe as possible. And, of course, were doing that. So no specifics there on dudley on exactly what the new york fed is doing, but he said, of course, were doing that, making sure that the systems are able to handle this new threat. Obviously a real vulnerability here. Were talking hackers walking away with millions of dollars at a sometime. Exactly. Eamon, thank you so much for keeping us posted. Mark cuban is on meet the press this sunday. Hes already making news. You joke thad you would love to be clintons running mate as long as you were allowed to throw bombs at trump. If she really did come to you, would you listen . Absolutely. But the key would be shed have to go more to center. I think, you know, i like the fact that senator clinton has thought out proposals. Thats a good thing because at least we get to see where she stands. But i think senator sanders has dragged her a little bit too far to the left. Things like College Tuition and other business elements that really i think could hurt the economy. If shes willing to listen, willing to hear other sides of things, then im wide open. You can be sure to catch mark cubans entire interview coming up on sunday. Would you serve as Hillary Clintons Vice President , mike . Apparently each ticket has to have a tv reality star. You have to counter one with another one. Its sort of interesting. If you go back 15 years and sort of the profile that mark cuban had, you would never project that you would get that question. Oh, no. It makes total sense. I dont even know how to use twitter. And donald trump, they love expressing unedited versions of themselves. Its more authentic. Thats what youre doing on the show here. Its actually its actually its actually theres no authenticity when youre totally authentic. Theres no consequences for anything they actually say. It appears to get them more attention and more opportunities and more platforms. It will be interesting to hear the rest of what mark cuban had to say. Its not just banks being at risk. Its smart homes and smart cars. The risk is growing. Next well head to san diego for a behindthescenes look at a Company Working to secure it all. 4, with available virtual cockpit. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel Alive Technology moves faster than ever. The allnew audi a4, with apple carplay integration. Its not just the government or banks that need to worry about cybersecurity. Since homes and cars are getting smarter, they have to worry about the internet of things. One is focusing on securing all this for us. Kate rogers has more for us now. Hey, kate. Hey, kelly. Thats absolutely r50i9. Cybersecurity is big here in san diego. Just like san diegos neighbor to the north, its really established itself as a hot bed for startup activity. In the last go years its named the top ten startup city. That cybersecurity and technology background, they really become the backbone of the startup team here. Thats where Darren Anderson launched cyber attack in 2012. They have accelerator programs for companies focusing on everything from robotics to drones to securing the internet of things. I really became passionate about what it means to be able to be in an innovative place like san diego, but to do so from a digital standpoint. We have so many adversaries making to look our lives heard, stealing our intellectual properties, our ideas, was something that really got me originally riled up. Reporter now, he said theyve got technology that actually hacked into drones and tells them to land. He said theres no place rather than san diego that he could actually launch this because of their military and defense background, but also because of the availability of local really strong talent. It is one of the only places in the country where you have cheap affordable talent that is as good as you can find in Silicon Valley. My team is made up of three former ph. D. S and former defense contractors. Reporter they can actually hack into a drone mid flight and get it to land safely, kelly. Pretty cool stuff. Back over to you. Its cool, but you know, it reminds me in a way of the whole point of this, its hackable. So whether hes hacking into it for a good reason, or someone doing it for a nefarious reason, the point is the vulnerability here. Reporter absolutely. Vulnerability was key among a lot of the companies we saw there. He mentioned drones, like we talk about them all the time. Theyre a huge problem. Theyre trying to secure different sport stadiums, concerts, things like that, companies that theyre talking to. Theyve got another technology that can hack into the drone and return it to sender so it wont drop mid flight and possibly injure someone. Its innovative technology. As you mentioned, kelly, vulnerability seems to be key here among all these startups. Especially as it moves into the home and car and everything. Kate, thank you so much. Raet rogers out in san diego. Magic mirror was once a thing of fairy tales. Is it a reality . Details on those when we come right back. Tmobile is going big for small business. Youll never get charged data overages, ever. Get your own 24 7 dedicated business account team. And with double the lte coverage in the last year you can get more done in more places. Right now get 2 lines with 10 gigs each for just a 100 bucks. And for a limited time get a hot spot free, yeah free. Switch your business to tmobile work today. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. 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. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com remember that evil queen in snow white . She had a talking mirror that would tell her what she wanted to hear. Microsoft is working to bring a magic mirror into your home. It unveiled it at a tech conference in singapore this week. It can tell you the weather, the date, time and can also, guys, read your emotions. Wow. The last thing i need is a mirror to tell me i look like crap in the morning. My wife does that op her own. I dont need a mirror. Or it would be one to cheer you up. It can tell if youre feeling in the dumps. Your hair looks great today. You dont look a year over 40. Interesting follow from the segment we just had about hacking your homes and cars and things. Anything thats smart, even if its a mirror, would have those vulnerabilities, right . Somebody sees this to have a platform for advertising. The less you kind of passively or actually intentionally look at a screen, like a television screen, the more ways advertisers will advertising on the mirror . You know its going to happen. No. Theres no other reason to do it. I hope hes not right, but he might be. Theres no reason to buy one then. I would rather not see advertising the first thing in the morning, because you can barely read it because you didnt put your contacts in. It will read exactly what you want. It will do your you can do your facebook. Youre a huge fan of that. Yes. You can use your facebook from the mirror. Lets pivot to markets before i get really distressed. So we had after this week, i dont know, peoples attention starting to shift toward china. Are a point was made earlier this week, can the chinese afford to kind of go against the grain there . We saw what happened in markets in february and last august. They didnt react well when they started to let it go. What happens if they have to do that again . Thats absolutely the question. The same chain reaction, get rolling. Thats happened in december. You have seen the chinese currency leak a little bit lower. They devalued it. Just a little bit. So far all the moves have been very tame. I still think you have a market that it might be good enough to tighten, not to really stoke corporate growth. And the u. S. Swimming against the tide in that regard. You know what, it terrifies me that we talk about a 25 basis point move. And there are all these repercussions and global effects. It shows you, you had the chart up earlier which i found it fascinating about the movement in bond yields. Were so much better off than we were ten years ago, but its still i dont know if its a perception thing, but we seem very fragile. 1 percentage point than the high yield. This is why it feels, again, like were on this its between two dramatically different outcomes. I dont think it wont end well. We have fed speak next week. All these issues will be wrapped into it. Thats true. Thank you for joining us here. That does it for closing bell. Fast money begins now. Happy friday. Fast money does start right now. Im me less a lee. Tim, david, brian and guy are here with me. The biggest bull in the man who called the bottom in february. Says investors are missing their best chance to buy stocks. Tell us what has him so bullish. The very same names that hedge fepds are betting will collapse, and well give you the names. Shares of footlocker are tumbling today. It could spell serious trouble for nike. We can tell you how to profit. We start off with an Interesting Development in the market. The names that have been outperforming, taking on the chin da