films helping in chains, but could summer hit ticket sales? >> well, i just -- believe it or not, i went to a movie sunday night. i saw "guardians of the galaxy." >> did you like it? >> loved it. >> did you like the first one? >> you know what? i don't remember it. i don't remember it. this one i remember. >> i saw "furious 8," the fate. >> we have so much to talk about with bob iger, a live interview with the ceo, first on cnbc before speaking to analysts. now you can take the graphic down. >> so much speculation about his presidential ambitions too, these days, much to discuss with him. >> beginning, though, with goldman sachs, ceo lloyd blankfein's statements made in the last hour, and we sat down with mr. blankfein to talk about the financial sector. this is what they talked about. >> do you think the u.s. banking sector is over at the moment? >> i do. i do. look, we had a very -- the system had a very, very big trauma, and we legislated very quickly. there was a lot of demand for it. the issue was, you know, what should we do? regulate capital? regulate liquidity? prepare for -- prepare for the things not working and have text for how people respond in case there's a crisis, or a resolution, call for resolution. there's even a regulatory overlay that tries to define a state of mind, why you took on the position, and which of these should we do? do all of them. >> what are yourq1 earnings. significant trading? >> significant trading. came down to a couple businesses. mainly our commodity business and currency business, but we were looking at all the businesses and quarter before, we outperformed in our trading business. this quarter, underperformed. guess what. i'm happy to report we are human. we are probably the large bank that best positioned for return to glass-steigl because we're not aup ver sal bank. we've some functions, but minor in relation to the banking activity. >> so let's bring in wilbur now. thank you for sticking around. i wanted to ask you, as well, taking this part of it out, but when lloyd was talking about the miss in the quarters, he made it sound like trends against active management is a trend against goldman. >> i think, well, in the past, they said it's down for volume. clearly, the other investment banks did not see that volume, and what he admitted here was there were misses in positioning, particularly commodities and that we're human so mistakes were made. of course, he pointed to the beat the quarter before, and, of course, he hopes moving forward they'll go back to a beat rather than a miss. it's a question mark and one this answer doesn't clear up as to where they head next quarter. >> you know, on the regulation issues talked about, he welcomes glass steigl and sense he welcomed it because of what it does to the competitors, not necessarily his bank, huh? >> exactly right, bill. two big headlines making this interview, that was one of them. easy for him to dodge the question. would a return to glass-steagall, be a benefit to you over your rivals? he was very, very clear it's easy for them to enter relevant to the rivals. of course, raising the question, if the person in the administration, why is he pushing it? we should say lloyd blankfein is clear he didn't think it would return because it puts the u.s. on a relatively uncontested footing to to banks around the world, but clear response there, if it comes back, it's beneficial to him relative to his big investment bank than his rivals. >> several weeks ago, we asked about what would happen. he laughed. said goldman shares double if that's the case. you're right. mr. blankfein did not exactly, you know, put down that idea that they would benefit. i wanted to ask about, you know, at this point, their positioned, having come off this period in a market with little volatility, and, you know, how much is a concern? >> well, absolutely. i say that's the other big take away. on issues of growth, optimistic. saying trump changed expectations. deregulation over prospect is a big part of that, and he said it was clear that growth outlook is better than it would have been in the other potential administration. for markets, you're right, pointing to the fact that every time, like the greenspan era, there's areas of low volatility, no risks on the horizon, but we are quickly reminded there are risks out there, quote, that the low volatility, itself, is a kind of bubble of confidence. so i think he's optimistic about growth in the u.s., but a warning sign there in terms of the market levels we're seeing. >> good stuff. thank you. >> thank you. >> we'll have more for you next hour. looking at the big tech names hitting all-time highs today. apple on track to close above $800 billion today, and warren buffett spoke about this yesterday. take a look. >> when we bought them, the shares were more reasonable. apple didn't have to do a lot better in the future than they were doing at the current time. when you get into a google and amazon, you're paying for the future more. look, they may well have a future. that is more than justified. >> so is there still room to run in the tech sector with some of these faang stocks? talking about it in the closing bell exchange today. michael back with us from hightower, at post nine, sitting next to steven and rick santelli checking in from chicago as well. michael, for you, for example, apple, that's a hole right now. you are not committing new money, is that right? >> i would not commit new money to it, but what apple's done with the earnings, with the revenues, cash is more than many of the companies combined in a thing. revenues are higher than many of the companies combined. look, in the middle of the triple crown season, buffett and cook are good jockeys to bet on. i don't buy more, but hold on to what you have, and let the momentum carry it for a while. >> focus is interesting to me on market cap. kind of funny because the cap would be bigger if they had not done huge buybacks, so the size of apple is smaller, the share performance has actually been a lot better lately. what do you think's driving the market? >> you know, if you ask me about today, higher yields and higher u.s. dollar drives markets all the way. if you try to ask me about the tech names, well, long a few of the faangs. speaking from my own money here, but i like them going forward. i like apple, even though -- stayed out of apple for a long time, got in late in the game, and i still have a nice return. for me, i'm thrilled with the way apple's going. amazon, i love amazon. don't you love amazon? order things all the time. >> every hour. >> comes right to your door. great name, but walmart is another rising tech name, and they are going to take on amazon, and i think successfully. walmart, more than long amazon, and i get we can go down the retail avenue here if you want to get on to -- >> wait, i want to start at the fact that you think walmart is a rising technology company. >> favorite little baby now. >> said if it's valuation story, that's one thing, but you think as a business market share story? >> oh, walmart -- have you read about the store no. 8, all incue bay tor businesses? they have the distribution network as much as amazon does. i'm not saying i bet against either one of them, but i after saying i root for walmart. >> all right. rick, let me pivot you back to lloyd blankfein's comments on banking regular laces. he welcomes glass-steagall. you're not a fan of that, but you want regulations to go away. here's another major guy from wall street who is not really upset with the regulations put in place, and, in fact, welcomes another piece here. >> yeah, you know, this is a tough one. obviously, after the crisis, there was overcompensation, in large part by the central bank and the fed wearing the regulatory hat. congress overcompensated with the notion that, you know, if we make them hold all capital, we are safe. of course, there's the more capital banks, the less there is to lend out. there's no magic number for what capital ratios are correct. take it a step further, you know, the treasury gives very special treatments, of course, to those that hold treasury securities. municipal securities, they get smaller haircuts, pay interest on reserves. distortions are everywhere. i agree e with lloyd, but i agree the markets have to find what the best thresholding per capital are. but, if you try to seclude failure to large institutions, you can't ultimately get what the market correct number percentage is so we constantly tinker with it. the fcc doesn't have a problem leveraging etfs, right? at the end of the day, if they explode, taxpayers are on the hook. buyers be wary, but we don't have the society now, not really only in the u.s. but in the world, that believes that. i don't think the answers are going to come easy, and i think the more we try to do it by committee, the worse outcomes will be. >> all right. i'm still thinking about walmart. >> we got to go, but i have to say, i ordered from there not long ago, growing up loving walmart, it was a savior in a small town community, but the functionality on the website alone is so awful, if they can't fix that, you know, immediately, it's unusable. >> that's why investments go there. the stock price of walmart right now, when the retail sector was dumped, walmart's up five bucks, a stock dormant for a long time. >> yeah. >> i think this is a rising giant willing to fight, and it's going to be a fight. this is one you have to watch going forward. >> this is the generation to please, too, right here. she wants -- >> i do like in-store pickup. >> fix the search. thanks, guys, appreciate your thoughts. >> thank you. 45 minutes to go here, and dow sitting on 21,000, down about nine points right now, s&p lower, too. transports, though, up nearly 50 points. oil's lower. nasdaq's up 19 today. russell's up a little bit. all over the place. >> vix almost back to 10. oh. more trouble in the airline industry. when will this end? which carrier is in the cross hairs this time, and what led to airport chaos. if case you have not seen the video. it's crazy. >> it is. also head, disney, news corp., nvidia some reporting earnings today. bringing you the numbers, analysis as soon as they hit the dap, and bob iger speaks with us on a first cnbc interview after the results. what he says could move the stock, ask him about political aspirations. >> i wondered, how do you get the collar to sit that high? that's what i want to know. >> we'll ask about that too coming up. coming up. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. shis it dna or olay? er than she should. new olay regenerist helps take years off your skin age so you can look younger. who needs dna when you have olay? new regenerist. the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. unbelievable, shares of spirit air lower after the discounted carrier abruptly cancelled nine flights late monday night in ft. lauderdale that led to this chaosic scene. this is ridiculous. here's what one of the passengers actually -- some of what the passengers had to say afterwards. >> lines were two to three hours. i cried. i'm not going to lie. i cried. >> and, today, the airline is suing its pilots union citing alleged unlawful job action by spirit pilots. phil lebeau, here we are again, another day, another airline mess, and somebody has to be fibbing here. the airline is placing it on the pilot saying that they refused to take some of these open bookings, and these guys are in a negotiation for the contract, and the airline pilot association says, no, operational problem on the part of the airlines. what's going on here? >> right. well, it worked out, probably over the course of the next week. once the airline, any airline goes to court, usually in relatively short order, it gets worked up. the court says, look, you've got to have flights going as scheduled here, work something out, and, usually, when the things come up, not often, usually they get worked out within a few days to a week or so. that doesn't help the people who have been scheduled to fly on spirit flights cancelled. they are irritated. we talk about this before. flying is stressful enough for a lot of people, then you add to the fact you're scheduled to be on a flight, two, three hour delay, long lines, boom. just takes one passenger getting upset and you have what happened last night. >> i just don't think we should normalize this brawl. listen, i sympathize with everybody who's been stranded on the runway, but, like, you know, people were fighting in deny's, like, it's one thing for people to be upset, bill, but this has nothing to do with the airline story. >> i think it's open season on the airline industry right now. >> this should not be happening. is this all summer? this is "law and order" issue, why are you brawling in the middle of the airport? >> they are not allowed to do that. >> people were arrested, by the way. >> three people were arrested. happens in any airport. you see it lumped in with the other airline issues that have people saying, well, look, airline travel right now is a terrible experience, blah, blah, blah, you hear this on a regular basis from people, and, yet, take a look at shares of spirit. they are up 50% this year. all the other airline stocks are up as well. why? planes are full. they are profitprofitle. they are generally speaking r running businesses to, you know, bring in the bottom line there. this is why investors look at this and say, sure, headlines, but it's not telling me to stop investing in the airlines. >> you know, here i thought i would be work up over shares of hertz, but it's not just anywhere close, i guess. >> yeah. i mean, pivot to hertz there. this is another example of incredible softness in the used car market right now, isn't it? >> the used car market is soft, and hertz admitted they shot themselves in the foot loading up on too many cars and sedans in a time people say, if i'm representing a car, i want a crossover or suv so you're not getting as much use from the cars. compounding that problem is this drop in used car prices, so that when they start to sell these, they are not getting as much money as they expected. this is an industry, the rental car industry that's feeling a lot of pressure, not just from the ride share companies like uber and lift, but also from other people saying, how are you using your capital? how often are the vehicles rented? how much are they out on the road? for a lot of investors, they look at this saying, i'm not comfortable with where this industry's headed. >> that's for sure. i don't know what mitigates it, too, phil. that's why -- it was surprising to see how big the share response was. so many stories we have been talking about for a while now. >> that was a huge miss on hertz part. >> yes. >> yeah. >> all right. thank you, phil. >> see you later, phil. >> you bet. >> phil lebeau wrapping up everything that happened in the car rental space today and airlines. >> those airlines, crazy. 40 minutes left in the trading session, dow down 23 points. another day of not a lot of volatility, but any positive close today for the s&p or naz a dak will be another new all-time high, and so far, looking good. >> not that it got that much attention, by the way. >> svery, very quiet here. >> adding a site to the home device, but do customers see the benefits? >> disney's earnings on-deck after the bell tonight, and the industry watches what reasons cuts at espn has on the magic kingdom's ceo and the company. his -- the ceo, bob iger, speaking with us on a first on cnbc interview after results are released. stay tuned for more on "closing bell." bell." mom gets breakfast in bed... you get to do the dishes. bring 'em on. dawn ultra has 3 times more grease-cleaning power. a drop of dawn and grease is gone. whyour boss?ork for? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. welcome back, a look at sturm ruger. the gun maker reported quarterly earnings beat, sales fell amid inventory backlog. the store stocked up ahead the election last fall, since donald trump was elected, it's been tougher for the gun makers. >> right. >> still, 10% bump from where it's been. >> big comeback there. meanwhile, amazon's at it again, unveiling a new echo device, the new version of the amazon echo called the echo show. it is the latest version of amazon's voice controlled system since alexa. there's a 7-inch touch screen display and camera, ability to send messages or make video phone call, and it's now available for preorder on amazon.com and costs $229 or $230 rounding up, and ships june 28th. with the new capabilities, viewers can do things such as see who is ringing the doorbell. fit a camera to see who's at the door. you can watch news briefings. >> like us. >> you can watch us, i guess. youtube. and sport events. watch highlights. new data in e-marketer says amazon now has 70% market share in this voice activated speaker market. the echo show is amazon's fourth edition to the echo family. shares slightly higher on today's trade. >> question -- okay, you have one. >> i have the original echo. >> original. >> i'm a rat in a maze. i listen to music. that's all i do. i mean -- >> are you concerned about it snooping on you? >> i don't care. >> really? >> no. if they want to snoop on me while i cook dinner, fine. i cook dipper and turn on the music. >> what if it has video? >> i don't know. maybe i'm naive. >> do you want the video version? is that a christmas gift? >> i don't know. it just seems like overkill, but, hey, it's very cool. you know, warren buffett is amazed at how well jeff does two businesses at the same time. if you think about it, it's retail, the cloud, and cool devices at the same time. with this thing. so i don't know. would you want one? >> no, i don't know. there are 10 million already installed in the u.s. that figure surprised me. there is an appetite. >> okay. i don't know what that has to do with why she doesn't want one. i guess if there's only 5 million, you'd want one? >> no, i'm just paranoid about it. >> amc entertainment ceo discusses the payoff from the buying spree over the last year and a half. a lot to talk about with adam aron coming up. >> earnings after the close, good time to buy their stock? 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>> data this morning for march wholesale inventories help out the first quarter, but interesting, not taking away from the second, which could have happened, but didn't, q1 gdp tracking up.2%, but it's not taken from the second quarter running at 3.4%. 2.9 to 4% is the range. notice the old solid 2%. this is where people are. 4% at the top of the range here, and atlanta fed at 3.6. action economics at 3.2, bank of america at 3, and goldman sachs at 2.9%, the low end for second quarter. still, a good bounceback, though, coming back from the weak first quarter growth. back to you. >> goldman lowered that from 3% down to 2.9 recently. thank you. i'm with the other steve, and first of all, do you buy the numbers, and is that what this market is anticipating as we continue to very quietly set highs here? >> look at oil. oil is telling us something about global growth. i know that people talk about oversupply. i've been negative based on fly supply, but it is telling us something that's negative. >> demand enough enough? >> demand is not there. i do think that markets have run, you can say there's pro-growth policies, but you can say they are running on earnings right now, and i assume looking down the tunnel, thing ares not as bright as they seem right now. >> by the way, kelly, found the customer for the amazon echo show. >> we did. >> you have sons interested in sports. >> i have that as well. >> find their sports needs in the morning. >> i have four kids that are constant constantly interacting with alexa or the echo. for me, i think that people are going to use this to stream. they youtube a loot. this covers both things for them, and they face time. >> is this enough to get you to buy the stock? >> well, i've been positive on the stock, it's 190, it's a little lofty here, so i actually bought ali ba bbaba, so maybe t come out with something that you can interact with as well, bill. you never know. it's a cheaper way to get your arms around alibaba more than arms around amazon. i love them both. >> as long as there's the old rolling stones play list, i'm there for you. thank you, steve. kelly? >> thank you, guys, time for the update with sue. >> hi, kelly, hi, bill. this is what's happening at this hour, everybody. starting out with former president obama receiving a warm welcome in milan. he was there to deliver a keynote speech on food security and the environment. two issues he's long worked on. >> during the course of the presidency, i made climate change a top priority believing that for all the challenges we face, this is the one that will define the contours of this century more dramatically, perhaps than any other. >> a fire cracker landed on fireworks, kicking off a powerful explosion in a home in central mexico. killing 14, injuring 30 more. the fireworks were being stored ahead of a big celebration. aaron hernandez died before his appeal was heard. the former patriot tight enkilled himself in prison while serving a life sentence for another murder. prosecutors say they will appeal that decision. that is the news jup date at this hour, back to you guys. >> i have a daughter whose friend is alexa, got the echo and created confusion in the whole house. >> change the name. >> i know. >> change your daughter's name, that'll be fine. >> took a week to figure that out. the first week, it was dicey. see you next hour. >> thank you. amc entertainment stock up today, after a report of revenue up more than 67%. acquisitions feed into that and try to set it up long term. >> joining us right now for an exclusive interview, adam aron, president and ceo of amc entertainment. welcome back. >> hello, bill, hello, kelly, always nice to be with you. >> is this about acquisitions? is that where the growth is coming from for you? >> well, we've certainly did have a spectacular first quarter to start 2017, as you said, revenues up 68%, an all-time record for amc. cle clearly, a lot came because we doubled in size adding movie theaters in europe. we had organic growth in addition to the cash flows bought through acquisitions. >> adam k i want to jump into something that you, you know, maybe headed in people's homes. video only demand this period, between a movie in theaters, when you rent or view it. do you expect that to change? what does it mean for amc if it does? >> well, we're actually quite excited about the possibility of working with many corroboratively to create a premium on demand window, send movies to the home in the first two to six weeks, but there's a misunderstood issue because people think that that's a risk to the movie theater business. we see it as opportunity because in discussions with hollywood, we expect meaningful participation, and so we might get paid when it hits theaters or you stay home. it's good for us, good for the studios, and good for moviegoers, too. having said that, we're only in discussions now, will be awhile before it's reality. >> i read the quote from you, ad adam, talking about this, at amc we have a backbone, a firm one, and if we can't forge an agreement on a new window advancing our interests, we take any and all necessary actions to protect yourself. what kind of action are you talking about there? >> make it positive for a second. we're in discussions with all major hollywood studios about participate i participating economically in the window heretofore for movie theaters. we are willing to share the window with the home audience, but we expect to participate economically. >> so the movie studios pay amc, even if i, kelly, want to watch the movie at home and has nothing to do with the theater? >> well, that would be the theory because they want to protect the golden goose that last year laid $11.4 billion of golden eggs, the size of the domestic box office here in north america. it's a good ecosystem for studios to have a healthy and vibrant movie theater industry. that's why we might share the industry. having said that, your question was what happens if the discussions with studios goes sidewa sideways? well, we got a seat at the table, and we'll defend our interests, but i'm hopeful that we can reach agreement with the studios and something that's good for all parties. >> wow. a lot of negotiations going on there. very ominous. >> well, just a little. >> all right. let me ask you about your expectations for the slate of movies this summer. now, guardians of the gal laxy, a big box office hit. so, you know, that one worked. there's an awful lot of other se kwaels coming our way this summer. here we go again. last year, the sequel did not do well. what's the expectations for this summer? >> well, looking in record box office years, the first quarter started out 4.5% up. we're on the way for another record year for the movie industry and business. we expect that these movies coming are going to be big ones. alien covenant opens soon. one movie after another after another. pi rat disney has pirates of the caribbe caribbean, which i've seen, superb. we think there's another huge year for movies in the u.s. and canada. >> that said, adam, before we go, prospect of some kind of boycott if all those films are coming out, and you guys don't comet to terms? is that the leverage if you don't come to an agreement in the studios? >> oh, you're talking so tough unnecessarily. let's just vote. >> it's a game theory. i'm just trying to figure out what the outcomes are here. what rewe talking about? >> good point. >> options are, when it's all done, i hoped to have reached a corroborative, cooperative solution, theaters working in partnership with studios to create a bigger buy that everyone can share in so that we all do better. that's my hope. that's any expectation. if it depose the other way, well, we're big boys. we have $4 billion market cap. we can defend ourself, but let's hope for the good and not worry about the bad. >> we're horribly over time, but, quickly, do you need them more than they need you? who has leverage here? >> we all need each other, and that's why i think that when it's all said and done, we'll come up with a great solution that benefits all. >> all right. adam, always good to see you. thank you for the time, appreciate it. >> thank you. >> adam aron of amc entertainment. >> i have to jump in, dow down 60 points. you know, we'll get more information, perhaps, could be some reports of, you know, another nuclear test from north korea, that sky sources on the news wires, meaning it may be playing into the action we're seeing 20 minutes ago, of course, we'll get more information as we can and bring it to you again. leg lower for everybody, but the nasdaq hangs on to a nine point gain. >> meantime, for years, hearing how much obamacare hurts small businesses with a possible repeal and replace on the horizon, see how small business is reacting. that's coming up next here. still ahead in the first cnbc interview, bob iger's take. that and much, much more coming up. up. welcome back, spiking lower into the close, elaboration, the u.k. ambassador from north korea is givie ining an interview, qu on the news wire that feed into this. the nasdaq's trying to hold a small gain here. >> sounds like they are ready to proceed, the north koreans are, with a sixth nuclear test. that seems to be what's upsetling the markets, although, it is only a 65-point decline, not to make light of it, but it's not that much of a selloff at this point. >> something to watch, for sure. >> a couple other movers today, valeant catching a bid, raising full year's earnings guidance, reporting its first profit in six quarters because of a one-time tax gain. they ended the quarter with 28.9 billion in debt, down from 30.2 billion the previous quarter. the stock, today, up 23%. >> wayfair surges to an all-time high with the online home furnishings retailer, loss on the bottom line, research tweeting that today's rise is a good opportunity to short wayfair, which is believes should head back to the 45 dollar share area which doesn't make sense. >> from 62? >> it's $11 right now. >> oh, no, that's plus 11. >> oh, 52, i'm reading the wrong number there. looking at -- up 21% right now, up $11 at 62. now i understand. pay attention, bill. wayfair ceo, speaks with us with us tomorrow on "closing bell," you don't want to miss that. small business optimism index is lower for the third straight month after record highs. kate rogers is joining us now, kate, and, again, in context, seems to be mild compared to the big post election gapes or is it, back down to earth? >> kelly, this is the third month in a row it ticked down. it had reached historic highs back in january for december. remember that was the first month we saw historic highs post election. it was also this month's data we were supposed to see how much small business owners actually cared about the gop's first attempt to repeal and replace obamacare in march. given more of the same, this is not a big drop as i had expected to see covering the space, but what i note is extra business conditions fell by 8 points. that led most of the declines here. i think two things are happening. either one main street is exercising some more patience, or, two, they did not have faith they'd repeal and replace to begin with. >> you know, as we know, one of the real problems is regulations they are dealing with, not just health care, but everything else, and i know there's a lot of hope still those regulations will be repealed. something that the new head of the sba talk about, right? >> absolutely. deregulation is a huge, huge deal, part of the optimism. up, up, up after the election, but i have to note, bill, these small business owners in this month's survey said they are really looking for tax reform. taxes, actually, moved into the top spot for your single most important problem. >> right. >> at 21%. what was in the top spot before? government red tape. they switched order of priorities here, putting pressure on the new administration, letting them know these are key issues. we'll know in the future reactions to whatever the senate winds up doing with health care e reform in the next survey and see how they respond to the very bare bones tax plan we heard from the administration last month too. we'll wait and see what they say. >> for now, kate, thank you. >> thank you. >> 12 minutes to go, and, bill, market spiked lower, and now down just 50 points into the close. >> disney earnings out in less than a half hour, but what's ahead for the mouse house with a disney bull and bear coming up. . i mean wish i had time to take care of my portfolio, but.. well, what are you doing tomorrow -10am? staff meeting. noon? eating. 3:45? uh, compliance training. 6:30? sam's baseball practice. 8:30? tai chi. yeah, so sounds relaxing. alright, 9:53? i usually make their lunches then, and i have a little vegan so wow, you are busy. wouldn't it be great if you had investments that worked as hard as you do? yeah. introducing essential portfolios. the automated investing solution that lets you focus on your life. moment ago, art stopped by to tell us the market on close orders show imbalance to the buy side by $350 million, not a huge number, but we have come off the lows here. art did confirm the feeling that the market did sell off awhile ago, down more than 70 points on the dow on word the north koreans do intend to continue nuclear testing. they are expected to try their sixth nuclear test here in the near future here. we'll hold off the lows right now. meanwhile, shares of disney higher today, set to report numbers after the close. expectations are for strong results, boosted in part by performance of its latest block busters at the box office, and mainly rogue 1, a star wars story, and beauty and the beast. >> joining us now debates what to do with the stock, robert luna and brian from pivotal research group. robert, we just highlighted the films, but will they be able to take center stage here or does it continue to be by the edge? >> kelly, we're probably, unfortunately, going to continue to hear about the stock of espn, skinny bundle, everything going with that, but i think overlooking the films is a big mistake. i loved beauty and the beast, a billion-dollar block buster. this weekend, guardians opened up $140 million. this company is a machine hitting all cylinders, and the idea that espn takes this company down i think is a short sided approach to the company. >> all right. brian, what do you think of that? i mean, you are our bear here, and you are concerned about the impact of espn and broadcasting overall having on the bottom line, yes? >> yeah. i just have to say, well, yes, studios are doing wonderfully. nobody can object to that. i e don't think they really can hold on the level of profitability over a year time horizon, and that's one of the reasons why we come back to espn. it's the one thing historically, i mean, looking forward, should be able to produce a relatively predictable margin against a relatively predictable relative growth trend. trends do not look good. between the sports write, and ongoing competition and enhanced competition between fox and time warn forget rights. you know, the abilities are not -- they'll be fine on a first come basis, but the problem is too much in the future. >> robert, you want to respond to that? do you, i know we -- i think morgan stanley expected negotiations, espn would command a higher price. does that help it? >> yeah, i think so. i think over-the-top solutions like the recent deal with youtube live and directv now and acquisition made last year, and i don't think they are taking that direct to consumer product lightly. they brought in the vp of amazon to won that divisions ceo. there's great things going on, and not just traditional content. look at e-sports, nobody talk about that. that was 140 million. >> oh, we're talking about it. >> they will be bringing on to that bundle, so i think, you know, it's a different transition in the way that content is being consumed. nobody's going to blockbuster to get a vhs tape anymore. it's just a stall in the way it's consumed, but, you know, i think numbers pick back up, and remember, parks and resources are the second largest additive to earnings there, and that's hitting on all cylinders. parks expanding, two new ships ready to be launched in the next few years. pipeline is large for disney, and hung up on this transition from espn is just, you know, too short sided. >> all right. wish we had time to give you more balance here on your side, brian, but we have to run. thank you so much. >> that reminds me, i forgot to take the videotape back to blockbuster. too late now. >> if you went to harvard, you don't have to pay the overdue fines. >> coming back on the closing countdown with the dow down 21 points >> after the bell, disney ceo in a first on cnbc interview, watching cnbc, first in business worldwide. worldwide. with e*trade you see things your way. ♪ ♪ you have access to the right information at the right moment. ♪ ♪ and when you filter out the noise, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*trade. start trading today at etrade.com it was just in the last hour here that we got this word from the u.k. ambassador to south korea that he's talking about the fact that north korea looks like they're going to try another nuclear test, their sixth recently, and it took the market down initially, on the right hand side of the screen, down 71 points suddenly on the dow, but it came back. look at the dollar index, that's dipped momentarily as well. but not -- >> not a huge move there, and the vix now was back above ten momentarily, but that now is there. >> not a lot of response here. >> what's important here is we talk about the risk factors, and big ones are now well below where they were months ago. earnings are better, overall global economy is better, taxes in play, politics, the french elections, received to be lower risk, but north koreans, what's out there, potential risk factors, see how quick the markets closed back, but they don't think it's a serious threat at the time, and i think they may be wrong on that. i think the risk is a little bit higher than north korea than the markets give you credit for, but buying dips, you can see that today. >> we will see, thank you, bob. down 34 on the close here, on the dow, and no record for the s&p. stay tuned now for disney's earnings and that interview with ceo bob iger on second hour of "closing bell" with kelly evans and company. see you tomorrow, kelly. >> thank you, bill p. welcome to the closing bell, everybody. i'm kelly evans, and the nasdaq, as you can see there, closing all-time high today on wall street. everybody else, though, finished lower. take a look across major averages, dow dropped 37 points on the bell today, closing at 20974. s&p down two, and 2396 for the broad index. the russell managed to tip positive just on the -- really hang on to it. 1391 is the closing level there. the outperformer there, and 61 is the new record high, and you can argue it's fueled by earnings it's seen so far this season. much more headed our way after hours, in fact, we have six of our reporters standing by for all of these results. we are so glad you are here. oh, five, all right. five box is good too. julia covers disney, susan lee on trip adviser and priceline, and deeni, and video results on today. thanks, everybody, see you in a moment. bob iger is joining us after the company's earnings are out on a first on cnbc interview, those results and more. first, on the panel today, senior market commentator and p procolumnist mike santoli. glad everybody could be here: mike, what's the first earnings flying out, you know, we had that news about north korea late in the session. put that in context. >> just a late little reason for a little bit of selling. i wouldn't put weight on that. market is idling here, low energy levels. i do think it takes one headline to say, look, we are stalled here, s&p 500 conspicuously is not reaching higher through the old record highs, so i think we have to be in a situation where the low perception of risk is its own risk factor. >> danny, what are you looking at here? we had -- talked about goldman, lloyd blankfein, a lot the last couple days about, you know, apple hitting the record in terms of market cap. it's a company that's splihrink as it grows because they and so many others, big moves by amazon and so forth. where do you like to be in this kind of market? >> well, the noise is at the top, isn't it? very giant companies where we're seeing massive earnings, and that's really where we see rubber hit the road. as we skip through earnings, we see where it's happening, and amazon, and these companies are eating lunch of brick and mortar and seeing that for the investor who is looking for deals on travel, doing it themselves. it's breaking the back of all the old school type of travel that we're going to see earnings today from priceline and expedia. i think that, you know, hertz reported yesterday, and they got there, you know -- >> might help them, but people able to take uber. >> i don't travel anymore -- >> it is expensive, personally, especially. >> just a time drag. >> yeah. >> you have to go to the desk, wait for the car -- >> the car rental by lax, you know, a year ago, it was awful experience. >> maddening. >> yeah. we're not shocked that hertz is doing how it is. earnings, catalyst on the one hand, but deals are a big catalyst on the other hand. feels like there's sectors like telecom remade here seemingly no matter what was said today, so, you know, i guess the question is, how should we expect that to reverb rap reverberate? >> everyone's looking for reasons to keep the animal spirit singled that we had. could be earnings, the m&a, french election, maybe some more stability or less stability on the korean peninsula. m&a is certainly a catalyst, and i think, you know, if you're a better person, you'll look at the way donald trump and his regulators, some of the things he said, whether it's the fpc or new guys looking at antitrust at the department of justice, and you get an idea that a lots of deals that you kouchcouldn't gey with six months ago are now back on the table. certainly, you mentioned telecom, sprint, deutsche telecom, t-mobile, that deal seems like it has to happen. there was a weird thing in the spectrum space, 200% premium paid for a company, and three guys fought for it. things like that are happening. bigger stuff, like, you know, massive consolidatioconsolidati more, i don't know, even though you thought in the campaign that donald trump was a guy who didn't like concentration of power, i think in reality he allows for greater consolidation in the corporate space that could be a catalyst. >> and, again, let's talk a little bit more about some of the growth prospects. we mentioned awhile ago, the commerce secretary making comments himself about the u.s. economy, let's bring in steve leisman with more. steve? >> u.s. secretary of commerce wilbur ross saying what the market is expecting. he said 3% amount of growth is, quote, certainly not achievable this year. he says, getting to that benchmark of 3% is going to require president trump's tax regulatory trade and energy reforms to be in place for several months. these are coming from an interview he did with reuters. the secretary said the dollar is not too strong. other currencies too weak. he says that stronger trade enforcement actions are a major tool to fixate trade deficit. comments out there, kelly, but the 3% number we talked about in the last hour, hit 3.4% in the quarter, but averaging out to 2, not getti intin inting there th because programs are not in place. kelly? >> thank you, steve. julia has the results from walt disney, julia? >> -- [ inaudible ] nine cents better than wall street analysts expected. up from a a 1.30 year ago quarter. revenue lighter than expected at 13.3 billion versus estimates of 13.45 billion. what's driving the quarter in the release here? they are saying it was driven by the strong performance of the studio and parks and resorts. media networks, of course, includes espn, saw a 3% rise, but that was largely -- 3% rise in revenue and 3% decline in operating income. broadcasting faired better than cable networks did. cable networks, of course, including espn, saw 3% increase in revenue, but slightly lower than expected $4 billion while cable networks operating income declined 3% to 1.79 billion. on the other hand, parks and resorts grew revenue 9% to a better than expected 4.3 billion dollars, and parks and resorts operating income increased a better than expected 20%. studio entertainment outperformed, of course, beauty and the beast was in the first quarter. studio entertainment operating income up 21% in the quarter. and, yeah, going through the results and what's driving numbers, the decrease of the espn due to higher programming costs offset by affiliates and advertising revenue growth. back with a first on cnbc with interview with disney ceo bob iger coming up. guys, back to you. >> you'll have a little bit more insight from someone who knows this more, julia, thank you. you're a shareholder, early thoughts here? >> i love everybody's talking about espn, espn, that's driving the conversation towards that disaster that's happening, but, frankly, this is one of the best companies to produce content that there ever was. they reinvent themselves and fairy tales for every generation. you have to own the stock, and fireworks are soming again. >> in december? >> december. >> all right. danny, rob, thank you for joining us. quick break. when we come back, talking to bob iger, shares lower after their results. he joins us on cnbc to talk about the quarter, the plans of espn, cord cutting, summer box office season and busy day for fed speak, busier, dow president set to make comments, headlines coming up. you're watching cnbc, first in business worldwide. ness worldwi. ness worldwi. welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn. welcome back. disney just reported earnings, shares dipping a percent right now. straight out to julia who is sitting down with disney's ceo, bob iger, on a first on cnbc interview. jim ya? >> thanks, kelly. bob, thank you for joining us ahead of the earnings call. appreciate it. biggest upturn surprise in the earnings baes was parks and resort division. what happened there? >> parks and resorts up 20% from a year ago. we had record numbers in our domestic parks, but we did well in all international parks, and we had a quarterly profitability in shanghai with great attendance. just a tremendous performance, and, of course, the studio up 21%, and their success story comets as well, and it was a great driver of the quarter. >> now, of course, investors, analysts continue to be focused on your media networks and ergs espn division in particular. the revenue and operating expenses were less than analysts expected. what's going on with that division? >> well, remember, we said this year, specific sli about espn, that because of some new live sports license agreements, notably with the nba, there would be a significant increase in our program cost. a lot comes in the quarter we're currently in, but it's affecting the year, and so media networks ened up was not a surprise to us. what's going on with espn, see, if you'd like me to address it right away, is that, as you know, we were one of the first to cite trends that we were seeing in the marketplace that saw a reduction in the number of expanded basic subs in the united states. we were candid about it. candid about it in their view, and with cnbc in the summer of 2015. when we saw that trend beginning, we took immediate steps to start contending with it or dealing with it, including negotiating deals with all the new platform providers, the ove over-the-top providers, including espn, including their subs, and including others to consumer businesses, including a lot of work done to improve our own app, and to increase engagement on digital platforms, which we've done and done dramatically well and paid attention to running the business efficiently. we believe we're well-positioned to contend with what we think is continued disruption in the business, but hardened by the launches of hulu, youtube, and previous launches of at&t direct, and sony view and others because we believe these new light pack captions that include espn and over the touch top plat tomorrows are the future and a asset to us. >> over the past couple weeks, a range of media stocks went down on concerns about declining advertising, but about cord cutting. even if you account for the new skinny bundles, over the top packages, there's still talk about half a million paid subscribers in the first quarter. how do you address that? >> well, i just talked about how we're addressing it. we are seeing somewhat of a share shift beginning from what i call traditional expanded basic platform providers to a lot of new over the top provide providers. we like the over the top business because they are user friendly, mobile first, engagement with the users, we think, is quite good. we are just seeing the beginnings of it. we like the trends we're seeing. hulu just launched, youtube launched a month ago, for instance. what we're seeing is some significant growth of espn, subs, and other disney channel subs, disney own channel, and on those platform, but so far, it's not enough to make up for some of the losses in the traditional ones, which, ultimately, we will see that, but the platforms are brand new. >> ultimately, the rise of digital will compensate for the decline in traditional? >> we think what we're going to see for our business specifically, espn, a rise in over the top, lighter packages, including espn, that will compensate for some of it. we will eventually be in a direct consumer business for espn products, hope to launch one on our band tech platform before the end of the year. we are increasing engaugement with apps significantly. with that, comings not only brand opportunity but advertising, and running the business more efficiently. we are actually confident in espn's future. we got a a tremendous lineup of programs and product, of live sports. live sports is still a huge driver of consumption, and it's just, by the way, as a for instance, these new platforms know they can't launch without espn because of the popularity of live sports. >> a couple weeks ago, you did major layouts at espn. are you done? more to come? what's that say about the restructuring? >> i don't take any lafoyoffs lightly. to say they are major, you are talking 100 people out of a few thousand people, so i don't think i would call that major. as i said, we're beginning to continue to manage the business efficiently. i don't think i need to comment specifically about those other than to say that during, first of all, it's concentrated to the walt disney company managing efficiently. in a business that's dynamic with a changing market place, you have to, one, ensure your product is of the highest quality, which espn is doing, you've got to, i think, be on the forefront of the changes occurring, which i talked bowe, and you got to be paying attention to costs. that's what we are doing. >> just in the last quarter, amazon bought the rights to nfl games, and facebook will likely be, eventually, sports rights, are those new digital platforms posing a threat to esp snrks. >> amazon bought rights to games twitter owned last year. nothing necessarily new about that. we don't take competition lightly, but espn always breaks a lot of competition, whether it's from the traditional television networks, whether it's from cable networks, of which there are many in the sports business, and now the emergence of some of the companies that are in the digital space that are interested in sports. the message that's sending is live sports are of great interest to consumers and to advertisers. no entity in sports today has the array of live sports, the quality and volume that espn has. so those deals are long term deals. we're going to continue to engage with those rights because it's critical, and so no one's better positioned than espn. >> moving on to couple more topics because you have to go to the earnings call, extenning a contract to july 20 is the, but there's still no signs of a clo, eve eventual replacement for you. do you have a deep enough bench to replace you? >> i said to the board, another year to pursue succession, opportunity to continue to assess talent from the inside and possibly from the outside as well. i am completely confident that our board will identify the right person to succeed me at the right time, and i think that then it's out there about this, while it's obviously important because and justified because the company is just maybe just a little bit greater than the it needs to be. i'm leaving in now 2019, ample time for the board to do what it needs to do here. >> document to run for president? >> i had one of the greatest jobs in the world, i believe, for 12 years. i have a few years left as we just talked about that. i got a lot to do here still, and i want to make sure the company is set up for the future, and i'm not spending much time thinking about what's next. >> there have been reports that you are pressured to run. are you entertaining the idea? >> i said what i'm going to say about that. >> so you serve on the president's economic advisory counsel, but you have not been in the meetings yet. we have not seen you at any of the meetings. have you been in touch with the president about some issues you're interested in? >> i have. there's been two meetings, both conflicted with one, a vacation i took, and another disney board meeting. i hope to attend the next meeting, looking forward to having a voiced room with other ceos, many i respect a lot, and i'm not in touch with the president for quite a while, but been in touch with others in the administration, and there are certainly issues that his administration's dealing with that are important to the walt disney company. >> what issues are important? health care reform? tax reform. >> there are many. tax reform is a big one. our rate is above 30% and pay $3 billion in federal taxes this year. the u.s. is not competitive with the rest of the world. we're the highest in the world. that's one. i'd like our country to be focused on exporting brand new data to the rest of the world, the tourism business is important being a welcoming place to the rest of the world, and encourage people to visit here, very, very important. that's, of course, a lot of business, not the disney theme parks, but hotels and restaurants and transportation, and support a lot of jobs in the united states. that's another issue. we're sbret interested in vet raps' issues, and there are many others. obviously, cost of health care should be on the minds of any company operating in the united states. >> i know we're out of time, quick question on your inside consumers based on theme business. how is the chinese and u.s. economy looking seeing bookings in shanghai? >> the fact our domestic parks business has record numbers this past quarter and overall business was up 20% quarter to quarter suggests that the u.s. consumer certainly is interested in vacationing, and interested in visiting disney theme parks. that's true in japan, true in france, and it's true in hong ko kong, and it's true in shanghai. pleased to say that within the next two days, shanghai should hit 2 million in attendance before its first anniversary. that was a stretch target for us, so, obviously, we're going to exceed that. two-thirds of those attending come from outside the shanghai area. it's a national tourist destination in china, boding extremely well for the business, and opportunities to have the land to comet to think expansion to continue do grow the business, and, obviously, it's a very, very important market for us. >> you request run off to your earnings call, be thank you for joining us, appreciate it. kelly, back over to you. >> julia, thank you so much, thanks to bob who is getting on the call at 430. down 1%. what jumped out to you? >> the area everybody's stuck on, the cable business. reflux reaction makes sense. also, you know, bob is consistent in the message about what disney is doing about that. they are kind of a, we get it, trust us, we'll figure it out. it's not satisfying on a quarter basis, but the explanation for why the stock is doing what it is. >> like they killed the messenger here. like, we came out, talked about it, candid, told you it was happening in 2015, and you punished us as a result. >> true. it's also the flip side of the benefit of the doubts that disney has for so many years because of the franchise, so it lives by it for, you know, a decade or more and got a lot of credit for it on the street, and now you're in the cross hairs of everybody's anxiety in the cable business. >> headlines from the call as it starts there for disney. two movers to the downside, fossil and yelp after hours. shares 25%. >> definitely, kelly, headline is about the after hours stock, down at the moment 26%. because of its revenue miss, which, by the way, rev enues, exceeded expectations, and another key miss is on revenue guidance, it's q2 revenues, company's expecting 202 to 206 million versus freed expectations of 2.2 million, and full year revenues came in as the company expected full year revenue of 850 to 865 million versus street estimates of 889 million. also, another key metric for the ol line review site is local advertising accounts, and the company missed there too. key misses there. they were a beat. company's reporting a loss of 6 cents versus a loss of 8 cents. and yelp has been increasing competition from the likes of uber and scrubhub and other tech companies, dealing with that by pouring more money into direct marketing. more color on the topics as well as misses coming up on the call in minutes. kelly, back to you. >> thank you. mike, quickly, ironic, last week, we talked about how yelp would benefit. >> acceleration in growth, mid-30s over the course of a year, but shows you it's a weakly believed story, and maybe that starts up again. >> 27% lower. earnings on price line too, susan lee? >> giving you a look at priceline and trip adviser, going to the mixed report card from priceline who has not missed by a length of 2012, earnings beat, revenues are like, but gross booking ahead of schedule, and guidance drags the stock down, down 3% guidance in the second quarter, earnings per share way below estimates, range of 1255 and 1325, and trip adviser, the stock hammered this year, missing estimates, revenues missing as well. but click base an transaction value, this is what they call the instant booking, booking feature on trip adviser rolled out over the past six months, out ahead of schedule, and talking about a start. >> still amazed priceline has not missed since 2012. thank you very much for that. not surprised because of the performance, but still five years now. could the telecom industry head to a wave of mergers? analysts think so, but they do not feel pressure on the urge to merge. what he says about that when we come right back. come right back. welcome back. a recent high flier in video has earnings out today. we have those numbers. >> kelly, best performing stock of 2015, continuing to build on gapes after hours after reporting better than expected results. going through them, earnings up 79 cents versus expectation of 66 cents, and revenue toppi inp wall street incentives as well, and the street looked for 1.91 billion. this comes as nvidia positions itself at the forefront of artificial intelligence, in fact, in the press release, the founder and chief executive of nvidia saying the a.i. revolution is moving fast and continuing to accelerate. pointing out, the different verticals, they continue to see broad growth across all platforms and strong guidance for the second quarter as well as revenue guidance. sock up more than 11%. over 12 months, kelly, shares up 223%. back to you. >> insane, thank you. another 11%? i was going to say before this, any stock, just take a pause after earnings. >> it came back. it had a pause. it was not dramatic. the underperformance, but year to date by 15 points. >> you. >> before the report. it's a relief, i think. >> exactly. >> more a group they led on the upside, and then they just took a sideline for the while. >> tripled and then some after the move today. >> well, it's -- they are looking to trade right now, not far from its recent highs. put it that way. >> getting back up there. >> time now for a cnbc news update with sue. >> here's what's happening this hour, everybody. the head of the u.s. cyber command said russia remains committed to attacking u.s. interests and interfering with american elections. admiral rogers told the senate armed services committee russia poses the most sophisticated threat to american institutions. jury selection for the officer charged with manslaughter in the death of an unarmed black man. shooting him in september out of fear. prosecutors say the 40-year-old had hands up and was not combative. wildfires force mandatory e v vakuations in south georgia. it's burned more than 140,000 acres. >> now carter wilkerson has the most retweeted tweets, sorry, ellen. he asked wendy how many retweets were needed for free nuggets for a year. origin nayly, it was 18 million and gave in and donate 100,000 to a homeless foundation. a lot of nuggets. >> okay. >> that's the news update. back to you. >> thank you, sue. oh. i like those nuggets. in other news, deal or no deal. the ceo playing coy saying we don't feel that urgency to be out there in the analyst community, banking community, and media to do a big deal. the question is, should they? >> i don't think you should feel urgency to do a big deal. a specific deal that makes sense that advances what they need to do, sure. i think this message sent, spit balling the idea to buy charter communications, a willing seller, and the rest of it. they had to contest this idea on wall street that, watch out, verizon carries high risk because they might have a big done deal ahead of them. really, that's what we try -- >> i was watching the basketball team play, you know, in the playoffs, playing in the verizon center, and it doesn't sound that jazz -- here's the idea, ready? verizon should buy t-mobile and take their name. >> not go back to being called bell atlantic or one of the other bell names they had? >> oh, all right. >> showing my age. >> you are. i enjoy it. sinclair, quote, we'll be the largest broadcast group by a country mile with the ceo, and they are owning so much of the u.s. -- 86%, i think i read, and they might launch a conservative news channel to take on fox news. are they now in the big leagues? >> they are trying to create a virtual national media footpr t footprint. what's striking is i recall old tribune before splitting in publishing and tv, there was an idea, too, having tv and newspaper in new york, chicago, l.a., and their idea was, we knit that together, and, you know, we have the superstation, and we can go out to advertisers and sell on a national foot print, and it just didn't work mostly because the newspaper economy crashed in the interim, but it was the prism. this is a version of that. local tv station, economics, they were good. >> people looked to see to pick up talent like o'reilly, others leaving fox, too far to the left, and there's a chance for it. >> finally, deliverlylydeliverl target, delivered next day as the target restock service, piloted in minneapolis. my question is, is it too late? >> it's little. put it that way. i don't know too late. it's experimentation. we all know, and by target's admission, i think, stores are not ideal distribution centers. they work for that purpose, but, again, meanwhile while target is doing this, next day delivery, go online and order from the website, amazon's got a device in the house, you talk to it, and adds it there automatically. >> like every step forward competitors take, amazon is three more steps ahead. >> it's the price of participating is what it is. >> lloyd blankfein in an interview. up next, what he has to say about former goldman president moving to the white house, why he thinks he's the right man to help guide trump's economic policies. stay with us. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov and the wolf huffed like you do sometimes, grandpa? 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(child giggles) symbicort. breathe better starting within 5 minutes. get symbicort free for up to one year. visit saveonsymbicort.com today to learn more. welcome back. finishing today on wall street, dropping 36 points, 2975 the level there. again, interview with north korean ambassador, tremors in the market in the end of the session there, a bit off the low, dipping down by 70 poeints. the s&p down two, 2396 there, and a point gain today, a a record close again. the russell up about 1 point, we'll call it, generously rounding up. checking in on the big names moving on earnings after hours. mixed picture. we got big news and little ones, disney down 1.5%. trip adviser up nearly 8%, but yelp down 28%. nvidia up 11%. a lot to digest there. we caught up with goldman sachs' ceo today. >> when he was your no. 2, did he challenge you regularly, and do you think he'll be doing that now to president trump? >> i can confirm to you that it is a core of gary's personality, which i witnessed for 27 years we overlapped careers, that he's a challenging person, all terrific. he has great ideas. he's the person in my life who says thing that i thought to myself, gee, i wish i thought of that. >> goldman sachs miss gary? >> oh, sure. we have other people who are also terrific. who are not gary, and gary is not them, and gary was not me, and he was not gary. i would tell you, he's terrific. there were things that gary did that everybody wishes he was there still doing, but the guys who stepped up into his job wouldn't have been there to do it if gary was there. life moves on. it's a long gray line. >> 2015, you had lymphoma. back to full health? >> i feel pretty good. i have to prod against the decline, i'm getting older than i was when i was first sick. i'm doing okay. i have numbness here and there, and, of course, i'm in the risk business, so i say, there's a little bit overhang, worry about things coming back, but i'm cured. >> wonderful news there. goldman sachs' ceo lloyd blankfein. yeah. so we -- we talked about this, but, you know, his role, history with gary is -- >> i asked if he spoke to gary taking the roam in the white house and he had, but not often. lloyd blankfein spoke of the other former goldman sack employees, likes of steven mnuchin, particularly the rhetoric on the came pain trail was not warm to wall street, but overall, described people in those roles as inconvenient saying he used to speak to treasury secretary jack lou regularly, and he's, quote, app p p pre-- apprehensive how it looks if he speaks now. he's proud of the appointments, but inconvenient. answers about the health and broadly about the tenure at goldman sachs of chairman and ceo. they w frank and honest. talking bowe the fact, going in the 12th year, experience that brings in terms of positivity towards the role, feeling comfortable, but said, look, i admit i'm not sure whether comfort is good or bad thing. doesn't rest on the laurels, but pleasing about his health. >> i want to ask mike, because you're here, what you think about the explanation, but just as the dust settle, what impression does that leave with investors? >> i think it's somewhat reassuring in the sense that, you know, we get arms around it, figure out if the franchise among client groups is impaired or a business mix. i think that's kind of what we should have concluded anyway. it was just there were conspicuous outliarers, but that happens on wall street. basically, it's not a zero-sum game. but some in the right spot. >> you think they suffered from the talent exodus to washington? >> impossible to say. i mean, i really don't know there's a way to draw a direct line. >> do you say? or -- >> i don't think they suffered from that necessarily in a single quarter. i think that the question mark over their broader trading business over more of the last five to ten years -- excuse me, five to six years, losing market share, only slight losses overall, but at times, when the biggest rivals, bank of america, morgan stanley, and jpmorgan gamed share. they clumped with u.s. investor banks, gaining share, they lost share in trading. the difference in terms of the head count, they lost in the last five, six years, well, it's not just hedge funds, but they started to lose traders to sell investors back. that's not what happensed in '90s and 2000s. we didn't get time to push on that. the answer on the trading for the quarter was two interesting take aways. one, a slight admission there was position errors. it was not just a volume thing. the other, as you said, heavily down trading mix, and we have to wait and sioux whether that turns around for the next quarter or not. bottom line, he said we're human, a bad quarter, we have to wait and see if it's just a single quarter thing or bigger issue. >> all right. thank you again. let's get to earnings alert on electronic arts, josh? >> kelly, electronics arts reporting 85 cents, burst expectations of 75 cents. revenue $1.09 billion, in line with expectations. company announced a new $1.2 billion stock repurchase program. q1, guidance for eps of 1 partnership 93. expectations, 357 on net revenue 5.1 billion. before print, stock up 20% this year, up 50% over the past 12 months, now heading higher on the call. one more color and commentary about the guy, release schedule for the new titles, mobile trends, call kicks off at 5:00 p.m. eastern. we'll be on it. kelly, back to you. >> video game makers all-time high list lately. thank you, joshua. dallas fed president still speaking to his forecast of three rate hikes this year. he just spoke, and we've got the answers next. . so beautiful. what shall we call you? tom! name it tom! studies show that toms have the highest average earning potential over their professional lifetime. see? uh, it's a girl. congratulations! two of my girls are toms. i work for ally, finances are my thing. you know, i'm gonna go give birth real quick and then we'll talk, ok? nice baby. let's go. here comes tom #5! nothing, stops us from doing right by our customers. ally. do it right. whoo! look out. ally. do it right. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. speaking at an investment summit, steve is monitoring the speech, and joins us with the highlights. boil it down, steve. >> thank you. bob from dallas saying he sees three rate hikes this year, rates rising gradually and partily saying we're at or near full employment and lose in the ten-year, a slight, and he ceo kored comments today. back to you, kelly. >> all right, thank you, mr. chairman leisman. mylan faciing contribute simila for hiking prices on epipen, and more outrage. why, next. one blackrock strategist says fear index is nothing to fear. he'll state his case. stay tuned. stay tuned. >> welcome back. a new study showing that epipens can handle a longer shelf life than cinco de mayo mylen does. a new study says epipens still contain 84% of active medicines, four years after their printed expiration date. meg terrell is here to discuss this. this is four years after the expiration date, which means it's 14 months but they're basically usable? >> these folks looked at 41 epipens an nine of the epipen, juniors for kids. the oldest were about 50 months after the printed expiration date. they found all of them had more than 80% concentration in them after that date. they are arguing perhaps these things last longer than mylen let on. >> if these work, meg, if there is son active medicine, not 100%. maybe the one didn't work the next one did. what would that mean in practice? >> there was varably in these data, we did see curve the older the pens were, the less concentration of epineprrin was in them. they have 100 to 90% of the active ingredients, maybe in the '80s is something you don't want to count on. myelin point out there are rules, currently based on their quality controls, people should be getting few ones every 12 to 18 months based on their expiration dates. >> there is investment. do your donor versus to bring that to a regular course of business? i know in some communities, bake amy, every kid that shows up. >> they didn't have the reality. i did find mixing. i'm worried about how broadly applicable this is. as we adjust the rules, it seems like it's artificial. >> when we get into myelin, it's more about the reputation of the company. right, are they trust worthy and the whole business of relaunching the gen eric and everything like that or is it more a case of investors saying, all i'm focused on is the number of units. >> that's what i we heard, i this i the stock had been punished enough. it wasn't building in this will be clear sailing for that part of the businessianway. i'm not sure it will be that much of an adjustment. >> has myelin responded, mech? >> they gave us a statement. they said they have expiration dates required by law t. final day they perform quality control tests. they say based on what they have right now people should, they are encouraged to refill the auto injector upon expiration, which is every 12-to-18 months. we know that myelin is working on a shelf version of the epipen and have filed with the fda that will extend the product shelf life. we don't know the timing of that right now. >> that will be really interesting. >> people at home doing the applications to come up with cheaper runs around them. all right, we'll see if it makes more effective as we head into the new school year. >> thank you for now. shares of disney are trading lower after reporting their results. the conference call, ceo bob eiger weighed in on the future of espn. we will have the full details right after this. t after this. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet? 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"fast money" begins right now. >> "fast money" starts right now. live from the nasdaq martz overlooking new york city's time's square, your traders are tim seymour, guy adami and karen finerman, disney is down about 3% near after hours low, that conference call is under way as we speak. it's what the ceo just told julia boorstin that has all the traders talking t. fear game hit one of the lowest levels in history. it has everyone freaking out. its not what you fear, you should fear something else. later, more drama on the ta