And more evidence that were not in the 20th century anymore, toto. Esports coming to cable. Why competitive video gaming could be the next frontier in the new world. Now cocacola is stoning production in venezuela because of a shortage of sugar. Wheel talk with a global economist about the impact this could have across latin america. Some of the stocks including homebuilders. Mary tom sn is on the floor with the details. Mary . Hey, there, bill. Markets rallying on the back of a strong gain in europe. Then we have the housing data. Theres also a bit of a short squeeze going on. Volume is not that great. Ill tell you whats great. The action on the back of the positive data for the april housing. We have Toll Brothers right now with better than expected numbers. Its stock trading at 29. 30. To the right you see the others, pulte homes and others. The home numbers have given a lift to some of the suppliers of the housing industry as well as the appliance makers and other makers like whirlpool and all of those who make building supplies. Those are among the performers as well. In large part youve seen strength in tech. Semis getting a boost on its report. And then lastly we want to point out cf industries. This was one of the biggest winners yesterday. This is a Fertilizer Company to acquire a Dutch Company called osi with changes to the virgin rules. Yesterday Merrill Lynch cutting the stock prices. Again, were seeing the Strong Performance led by financials, led by health care and led by tech. Back to you. Thank you, mary. You know, the number of the day, to me 321,000. Thats the medial price of a new home on the market. I mean these are dramatically high twhaern we saw during the bubble which is just fascinating if there a point of view. What does it tell us about that part of the economy. And theres a rally today and the stocks interesting. Lets get to our Closing Bell Exchange now for this day. John manly from wells fargo funds is with us. Hes at post 9. So is steve grasso from Stuart Frankel and Rick Santelli is back with us from chicago. Steesh gra steve grasso, you were talking yesterday. We have a pretty good cushion over that today. We do. Flat on. I mentioned yesterday the fed has the inside track on the polling data for brexit and thats not going to be a hurdle for them if they wanted to go in june and no later than july. I felt like they wanted to stay away from that political cycle. June, july, it doesnt matter to me. It matters to the market and the fact that the dollars rallying, crudes up. This definitely feels like a riskon trade for me. But look at the housing data. Maybe you play it through ford or gm. The followthrough would be the ford f1 50rks the silverados, but those are really if you think of comeback in construction and a comeback in growth, you want to be buyers of those stocks unless this is just a kneejerk reaction and we sell off in the next couple of weeks, which i do believe were at the top end of the reins. That brings us to the question do you think the stocks will anticipate a rally . Sure. Why is the fed raising rates . Because the economy is getting better. The real question is how many times are the feds going to raise rates. The real question is are they going to try to encourage or discourage Economic Growth . Thats easy. No matter whatever the rates, theyre going to push the economy. Meanwhile, rick, lets see. The dollar, what did i see. Was that a tenweek high . Weve got a iuorio, a strong twoyear note auction. Discuss, rick. Yeah. The twoyear and the dollar index are kind of dancing to the same fed music. You know, i pretty much totally disagree with job. The feds raising rates because all roads lead to negative outcomes if they dont. If the economys getting better, they wouldnt be crying behind closed doors that they have to raise rates. They would have done it. But i give them credit. At least theyre opening the door a bit. The real issue is it a chicken little chapter or is it not . Im telling you, their credibility and its not them. All central banks, all this experimentation, were tired of having three arms and five legs. We want things to get back to normal and steve nailed it. What used to be a creeling is now a floor. How many times have we bumped up against a change from the downside. Now were bouncing off it from another direction. Were within a half a point of unchanged achlt half a percent before this mornings rally and i think thats a good thing. I read that santelli wrote a story about flat is the new up. Thats been kind of the moniker, the saying on this Trading Floor for a couple of years now regarding equities that when normalization occurred, just a flat line is going to be a good youtd come. How many times are they going to put us through getting ready for it. Yeah. By the way, one area that is doing okay today, john, are the insurers. It looks like chubb was trading at alltime highs. Cincinnati financial, alltime highs. A on the high since 2015. John, would you stick with the insurers here . Is this finally the relief over the higher rate environmental, you know, opportunity . I think so. By the way, i should mention. I wouldnt rather be wrong. Im very proud of that. I do think the fed is going to help. Weve been waiting for the fed to raise rates. Most of us know theyre at a moderate pass. I think the insurers anticipate that. Also some of the banks should also anticipate. Steve, what was your name again . Yes. What role do you think crude oil is going to play in this equity market right now . We know the correlation has been busted. It was strong last year. Hasnt been this year. But if Oil Continues to move to new highs for the year, does that put pressure on equities or does it help them . You cant i dont like to play it with pressure on equities. I think its been misconstrued. I dont think thats necessarily the case. Theres no global growth. Its anemic. Our growth is subpar. So i do believe its a trade at this point and it would eventually. I white gold rather be a seller. Is that bullish bears . A lot of people in the space have been bettsing against that, but were very tight to that 50 mark. Goldman sachs put out their price target for crude. Its 50 bucks. A dollar and a half away from it now. No leap of faith. I would be a seller of the market. I would feel were still topee and the market has to give some back. Very good, guys. Nice to see you. Thanks for your thoughts on todays market action. We have breaking news on toyota and uber. Put those together, dom chu. Theyre teaming up, guys. Its a lease they put it jointly. In this release toyota and uber have announced theyve formed a partnership in which the companies have entered into basically an agreement in which theyre going explore collaboration and trials on kind of expanding the world of ride sharing in certain countries. As a result of this collaboration and partnership, Toyota Financial Services and an Investment Fund that has toyota as an investor will invest in this particular venture. Again, the whole idea of this says the release is through this agreement the companies will create new Leasing Options in which car purchasers can lease their vehicles from Toyota Financial Services and cover their payments through their earnings they generate as uber drivers. So, again, if youre an uber driver and youre creating or making a paycheck, youy use that to offset the cost of leasing or renting a toyota automobile. Theyll also explore a collaboration in a variety of other areas such as developing incar apps with uber drivers. Again, an interesting partnership. For us, not unforeseen that a car manufacturer would get together with a ridesharing service. We already know that gulf of mexico a gm and lift have a relationship. Now toyota and uber in release in the pafts few moments. I with u going bring up the gm lyft deal. Clearly this adds value. Its an interesting way to talk about whats going to be the market for these guys. Is ride sharing something thats disruptive to a gm or toyota or not . By the way, did you see the story in austin, texas, where the regulations chased uber and lea lyft out of the city . So the city leaders in austin, texas, in 16 days put together an alternative ridesharing, a nonprofit ridesharing business that theyre going to use called ride austin. I wonder if thats in the future. This is how center has evolved. The first person gets in there and they get all the chases. Same with carmel. Were doing Free Association here. They have a new ride sharing app. Really. Yeah. So well be watching that. Im all into that. With lyft, theyre letting you book these cars ahead of time. Thats going to be a big innovation. Yes. You get a week advance of booking there. Amazing. Toyota making a strategic move with uber. The s p is up 28. The nasdaq up 91. The redstone saga heating up after the billionaire named new trustees for his media empire. When we come back, the impact it could have a on viacom and cbs. Plus snapchat raising 220 million. Is that a fair price or is this another potential red flag for a startup space. And uber and the gig kma economy to blame for the nations growing tax gap. Thats coming up later as well on closing bell. 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. 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. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome back. Weve got under armour surging. It tops nikes 252 million deal with ohio state. Coincidence, i think not. And shares of monsanto are higher after they rejected bayers buyout offer. They called the offer inadequate. The people response for his stakes. When he dies or is incapacitated. Julia boorstin has more or the latest on this story. Julia . Hey, kelly. Thats right. Today redstone announcing replacements. It will control 80 of cbs and viacoms voting shares when redstone dies or is incapacit e incapacitat incapacitated. He appointed tad jankowski and jill krutick. He also employed her and his granddaughter. He said, this is my trust and my decision. I have picked those loyal to me and removed those that are not. Yesterday there was a suit filed to challenge the removal questioning redstones mental state. Meanwhile redstone filed a petition to uphold his changes to these two boards. Now focus is very much shifting over to the future of viacom whose shares are down 40 in the past 12 months. Reporting are circulating that sumner and his daughter Shari Redstone are looking to shake it up. These battles are over. I home Andrew Ross Sorkin or others are taking notes. Julia, we want to talk about how esports, video game playing has become a very popular spectator sport. Its coming to cable, right . Thats right. Esports is now ready for prime time. Theyre announcing the launching of the their first tournament. It will culminate with finals that will air on tbs on friday. This is the first of 20 esport events that turner plans to air live on air. Theyre branching off on the traditional tv content. Not only does it offer legitimacy for the hardcore fan but it also opens the door for a casual friend and a potential to grow the audience. Former nba player rick fox whos competing in it says this tv tournament is a tournament for esports. Its a way to cash in on the 220 million Million People who are esports fans. Theres ticket sales, media rights, sponsorship and merchandising. All the ancillary and traditional ways you would see a professional sporting franchise capitalize on their investment. Now, the e Sports Industry is projected to grow to a 1. 9 billion business in 2018. Thats up from 750 million from last year. Bill and kelly, definitely a hot space to watch. Where do we begin . Its sort of when we saw the twitch. Now this whole thing is really blossoming, and its about people watching others play video games. I read today in the journal how its changing the habits of buying people how they would try to get good at one or two they follow on the pro circuit. 220 million fans out there . Are you kidding me . 220 million fans. And there are all sorts of statistics that are mindboging. If you look at the amount of time people spend watching video games every day and the range of Companies Getting into the spachls now, of course, we have turner making a big bet in this spachls remember, it was almost two years ago that amazon bought twitch for about aillion dollars. Its one of the main destinations. Everybody thought youtube was going to buy twitch. Youtube has been investing heavily in its own streaming. Teen gamemakers themselves are investing this this space as well. Friday night, right . Get the popcorn. Get ready. You enjoy. We know what you guys will be doing. Absolutely. ll be watching tcm or something, doing know. Thank you very much, julia. Is there basketball friday night . Probably. A couple of big series going on right now. Competitive. The market continues to set highs for the day. The dow up 234 points right now. Percentagewise, nasdaq is having a better day. Up 2 . Snapchat has over 140 million users. Theyve just nailed a 20 billion valuation. Up next well hear from a top venture capitalist whether that price is just burng. Meanwhile disney is waiting to open its long awaited shanghai park but now someone is vowing to crush their dreams. Well have the details coming up on closing bell. Olay regenerist renews from within. Plumping surface cells for a dramatic transformation without the need for fillers. Your concert tee might show your age. Your skin never will. Olay regenerist, olay. Ageless. And try the microsculpting cream you love now with lightweight spf 30. Still the stock down around 46 for the year. Ceo Nick Wood Miami with squawk on the street this morning. I think its somewhat relative of peoples understanding of what it is were building. In that sense were highly motivated to do a better job of communicating the vision of gopro and go and build it and go and realize it to make it real. Those shares of gopro you could see up nearly 5 . Im not picking on nick woodman but how many have we heard from when their stock is down saying their stockmarket doesnt understand my company. Oh, sure. Right. Yeah. Sometimes you hear it on the flip side. Maybe elon musk talked about it. Oh, when stocks high. We talk about it. No troves. No big news and things. Its quitely building a big franchise, isnt it . Yeah. Well, especially in my house. We have three teenagers. So i think theyre creating quite a buzz . That demographic. Still, steve, how much do you think its worth here . 22 billion. You know. Is it justified . Well, if you look at it alone, snapchat is growing faster than facebook. It has about 40 of the engagement that facebook has. And 40 of it as well. It has 10 , 15 of its daily active youers account. So today facebook is worth 330 billion. Is snapchat worth 1 16 of facebook given those numbers . Right. I id say. We know how fixing the young can be with their social media. Theyll move onto another platform when they get tired of that one as theyve done in the past, right . That would be the bear case that this is a flash in the pan and, you know. Is snapchat profitable . I cant tell you that. I know these companies dont often monetize to the extenlts that the more Mature Companies do, but, you know, its often said that content is king, but context is god. If you think about what that means, the overtime if you bring the i hate to sort of harken back to the days of the eye balls where companies are valued on eye balls. But today snapchat has as much video traffic as facebook does. Its only a matter of time when that level of traffic, that theyre going to start monetizing. Part of the reason why its risky is the fact that its private. Should there be more of an effort to get companies . Once they get this big into the Public Markets where its easier for people to look at their financials and make sure its there . Yes. Well, unfortunately theres effectively a 500 million tax on startups going public. Its called regulation in the form of starbucks, a huge variety of regulatory issues that essentially criminalize in banging and being a startup company, you can only really afford to go public once youve gotten to be at fi 5 billion, billion, 15 billion company. The reason were talking about this on cnbc, snapchat, which no one can invest in except for a few select private institutions, you know, it says a lot about where we need to go regulatorily in our country. It does. Steve, thanks for joining us. Thanks, steve. Steve talking snapchat. Its time for our news update. Lets get to sharon epperson. Hi, sharon. Hey, kelly. Heres whats happening this hour. President obama talking with veto any meese on tre bre nears about their business and success to ho chi minh city. He says it will talk about their potential for innovation to the world. Gas stations in paris experiencing fuel shortages with some temporarily closing. This following unionled blockades. The blockades oppose frances new label reforms. Security is being tightened near the g7 summit in japan. They set up roadblocks while more police were added to the area. The twoday summit which president obama will attend begins tomorrow. And who would you like to sit next to on a plane . Donald trump, hillary clinton, or Bernie Sanders. They surveyed nearly 10,000 travelers and 3