Transcripts For CNBC Squawk Alley 20170510

Washington with a lot more. We are less than 24 hours into this stunning news of President Trump firing james comey, the fbi director, who is leading an investigation of the Trump Campaign and Trump Associates over ties with russia, which, of course, interfered with our election. We saw just a few minutes ago that the two leaders in the senate, republican Mitch Mcconnell and democrat, shuchuc schumer took their roles. What we have now is our democratic colleagues complaining about the removal of an fbi director, whom they themselves repeatedly and sharply criticized. That removal being done by a man, rod rosenstein, who they repeatedly and continually praised. Chuck schumer, the minority leader, had a different view, as you would expect. I will be requesting that the majority leader call a closed, and in necessary, all senators briefing with the attorney general and Deputy Attorney general separately at which they can be asked questions. But beneath those two familiar roles, we are seeing some cracks in the republican veneer of unity, specifically, richard burr, hoist republican cochair of the Senate Intelligence committee investigation, said he was troubled by the rational and the timing of this decision. It raises the spectrum of a more Senate Investigation of continued and deepened resistance to President Trump politically including on the campaign trail which raises the possibility of two things. One, paralyzing the entire republican agenda, including health care, tax reform, allege legislative changes to the dodd frank regulation law and to the possibility that you could see democrats win control of the house next year and take steps to attempt to foreshorten the donald trump presidency. Dont know whether any of that is going to play out in practice. It is an uphill fight for democrats to win control. Those things are becoming more possible due to the firestorm over this. You did say a lot of republicans or some represent quans wou represent qua republicans would be doing a gut check. On fox, grassley telling people to suck it up and move on. At what point does the market need to worry about their policy expectations being dampened . I think the market ought to be worried about it right now. Chuck grassley is the chairman of the judiciary committee. He is going to stick with his president , so is Mitch Mcconnell, the senate leader. We have seen ben sass, jeff flake, john mccain, richard burr, among others, be critical of this decision and when you have a Senate Majority that only has 52 members, that means that you can lose a small number of people and lose your ability to get things done, among other things. President trump has got to get through the senate a new fbi director and thats not going to be easy given the firestorm here. Can he appease his fellow republicans by nominating someone that they would approve of as he has done with other appointments and get them back on board . You cant rule out that possibility. It is not going to be easy. First of all, democrats are going to raise the price of any new director for the fbi. They are already saying that we will not go along with a new appointment unless we get a special prosecutor, dont know if President Trump will take that step. Because of changes in the rules, republicans may not need democratic support. Thats only true if they hold all of their members. That is no guarantee. In fact, it is a shakier presumption now than it has been at any time in the trump presidency, that he can keep all 52 republican senators in line. Well wait for more word from other republicans. John, thank you for setting that up. The Senate Democrats calling for an independent special prosecutor here to provide some insight, we are joined by former d. O. J. Jacob pringle, and former assistant attorney, doug burns. Jacob, we are trying to figure out the size and scope of the fallout from this so we can figure out how much it is going to preoccupy the white house and Congress Going forward. What do you say of that . The short answer is, were talking about optics and politics but also the need for returning and restoring the integrity of the investigation. The fbi for the longest time has enjoyed a reputation for conducting objective, integritybased investigations. I think the critical thing is for the Justice Department and the fbi, ultimately, what we really care about here at cnbc is the market and the market impact. This is not treasury or the sec speaking. This is about a plit quolitical investigation that is not market centric. There is a rule of law whether anybody does or does not accept the rationale behind the determination, can a highprofile investigation move forward with independence and can those conducting that investigation do so without being interfered with by outside and particular Political Forces . How many weeks of the already tight legislative calendar is this going to occupy for congress whether they can come up with a special prosecutor, have hearings on it, that takes away from bha they were supposed to do, figure out health care in the senate and tax reform and congress . It is extremely difficult. Working with jacobs point, i agree. We have to have a situation where the optics of it are that there is integrity in the process. There are two optics. One is it is directly related to the russian investigation. Thats why this happened. The other is, no, it had to do with the conduct of the director all the way back. Both sides are going to argue na vociferously. You are right, sarah, it takes away krchronologically, from getting the business done. They need to move forward in a way people have confidence. I am not convinced that the markets seem to care that much either way about how this is playing out in washington. Inside the d. O. J. And the f. B. I. , what is the mood likely to be, the conversation likely to be about these pretty much unprecedented moves . I agree with you. I think the market is not likely to really react beyond the little bit of news and envy, the minimal turbulence so far. I think any time you have a firing of a highlevel officials and i spent ten years at the s. E. C. And was in a special prosecutors office. It is all about being able to enable the staff, the career people, to do their jobs. When they feel as if they are goi there are going to be outside forces brought to bear on their investigations, it is unsettling. It does affect morale and the move. It is important for the powers in the Justice Department. The attorney general acting through the Deputy Attorney general has an obligation for all of the United States attorney offices and the Justice Department itself to restore some sense of calm and reassure line prosecutors and investigators they can go forward with their investigations without it being impacted by plolitical or other external forces. To that end, doug, what names come to mind when you are thinking of somebody who could do what jacob just said needs to get done . In terms of the fbi director, first of all, very often as jacob knows and my late father was Deputy Attorney general in the second reagan administration. You will either use somebody very high up, a deputy, certainly, on an interim basis, that happens all the time. Then, they are going to look potentially outside. In this particular case, they are going to really have to make sure that its somebody that sends a message of strength, consistency and depolitical zation of it. The point is, working off my colleagues point, you have the interplay between career people who are there through different administrations and political people. That has to be done where the career people are satisfied that the political people are doing everything objectively and fairly and in a nonpolitical way. So, i mean, i dont have specific names to give you but i think maybe the deputy gets moved up interim and they will act fairly quickly to come up with a new fbi director. Jacob, what is the message that the fbi rank and file in particular are going to take from not only the way james comey was let go . He is on the road. He thinks it is a joke at first. The way that preet farara was let go. They think they are okay and all of the sudden, they werent . It becomes a morale issue. I think we have to roll it back to the Hillary Clinton email investigation and the discussion around the clinton foundation. We dont really know all of the details but here you have career prosecutors and investigators working on both of those investigations and watching in the Public Domain those investigations, in essence, being squashed through the political, public process. When im doing investigations for corporations or defending investigations, the one thing i always want, i want to be able to do this outside of the public eye. Thats the way the fbi, the s. E. C. , investigative agencies, prefer to function day in and day out. Thats got to be the message going back to the rank and file that there will not be these external pressures brought to bear. You will be able to pursue even politically sensitive investigations. That brings us into international anticorruption, domestic corruption. There are a lot of potential implications. I dont really see them as market, Capital Markets affecting issues. Well see what happens as russias top diplomat is at the white house this morning complicating things further. Jacob frankel, thank you and doug burns, our thanks to you as well. Inside. Com, founder Jason Calacanis is going to join us with what to expect from snaps first Earnings Report after the bell. The nasdaq down slightly hoping to post its fifth positive session in a row. The dow and s p also slightly to the down side. Squawk alley will be right back. Between disney and snap chat, a lot of earnings to digest. Inside founder and angel investor, Jason Calacanis and eric kim. Good morning to you both. Good to see you. Jason, they kicked disney around a little bit this morning. Disney is down 2. 5. Did we find out anything last night about subs and the cable model that we didnt already know . Yes. I think this is just confirmation of what we have been talking about here for well over a year, which is obviously people are core cutting and this is going to have a dramatic impact on the one company that has ridden the cable subscription boom better than anybody and thats espn. They are the bellwether of all cable channels when it comes to the impact of cord cutting. Now, its going to be a massive transition, because they just spent a ton of money on things like the nba. Thats happening, this erosion of subscribers, 1 2 of the country is going to cut the cord every month, every quarter. Na will probably continue for a couple of years. The good news and i think this is very significant news, things like directtv now and the new youtube tv, over the air television for about 35 a month. I have had both of these services. They are both extraordinary and massively addictive and both 1 a day. They are very easily affordable by americans. When you start using your smartphone as your remote control, throwing what you are watching on your ipad or having access to Live Television wherever you are, on vacation, if you are traveling, it is an extraordinary experience. I am bullish on this ability for a whole generation of p people hoff forgotten about Cable Television to reengage. Eric, talk to me about snap reporting after the bell. It is clearly snap versus instagram versus snap versus twitter. First earnings call, extremely important for management to communicate clearly. What do we need to listen for in particular . There are three things we need to look out for. Number one, what is snaps response to facebooks attacks on stories, their core product. Number two, user growth. Are they going to meet that 7 million to 9 million ad number. Number three, how well is their mon etty zation going . What snap chat is going to do is the most important thing to look out for. Jason, i wonder how important user growth is. They say they have it. They dont want to follow the facebook model of becoming ubiquitous. What are the metrics they are going to try to emphasize here . Obviously, what makes snap chat super unique is that it has got a more private feel. Thats why young people are very much drawn to the service. While those same young people might have Facebook Accounts and they might check out facebook, even daily, they are not going to share their coachella videos or what they did on those public open services. You really have a hard time understanding this Company Unless you are a young person who is out and about, living their lives and single. People with kids who are watching or parents, they just dont understand why this is such an important service, because it is so opaque. I think snap chat is the antifacebook in a way. Facebook wants to have every Single Person on the planet on it. What snap chat wants is to have the most valuable niche, which they believe will be the millennials, generation c, people born after the year 2000, part of that connected generation. They are not going to try to compete for the global user base in the same way facebook is obsessed with strog ehaving eve in the phone book. They dont want everybody. They want to be the black book of the cool kids and monetize them in a way that facebook cant. Facebook doesnt have them and it doesnt have them for hours a day. Snap chat is going to get themselves into trouble if they get into yahoo s problem, a constant comparison to google. Snap chat has to establish they are Something Different and they are going to grow at a different pace and have a different user base who engages ten times as much as other platforms. I would be very cautious with the stock. It is fully valued. Part of that, eric, equation, is getting the street educated, so to speak, in that business model. We talked about this prior to the ipo and on ipo day. You are dealing with a street that hinges on every word. Why should snap be any different . Thats correct. This is compared to when facebook went public and twitter went public. This is a completely different model. If you look at their revenue versus their profitability. They need to focus on engagement. How long are people spending on the app. They dont have the profitability. They dont have the user growth that facebook does. They are onetenth the size of facebook on a dau basis. To compete, it is about the engagement and can they serve up those ads in a meaningful way. Thats not going to turn off users. It is important to remember in the last q1 survey, facebook got to greater market share of stories for the overall population. A lot is for the older group. It is up to the millennials. Which one are they going to choose, snap chat or facebook . It is a battle over that very valuable demographic. Jason, it seems to me, in a way, espn and snap are facing a similar challenge in question. That is, can you slice the audience thinly enough and provide enough value to them that either they are going to pay more to subscribe, if they are sports fans or advertisers are going to pay more to get to them if they are the young people on snap chat . What do they have to do to succeed in that . Is it about Quality Content . Is it about some other kind of differentiation . Yes. I think espn is at a particular crossroads, because, as all of us know, when some amazing play happens, back when we were kids, ten years ago, 20 years ago, we would turn on Sports Center to watch the highlights. Now, you are watching the highlights in real time with commentary from citizens who are just holding up their phone and recording their tv. You have this up to the minute twitter, facebook feed of amazing content. Espn is not part of that right now. They have to become part of that dialogue, which is why you are seeing them hire some young correspondents who are very active on social media. They will also do a direct to consumer play. That will be the real highlight for espn. Lets say they lose one or two percent of their subscriber base. If they can start gaining a couple hundred thousand people a quarter subscribing to espn to get a unique package of archival footage and millennial content that has more edginess to it in a way mtv had edginess to us. What if espn has a direct to Consumer Product with 300, 400, 500 million customers, they are watching their patterns. This could be a very hard transition or it could be very profitable. I am excited about hulus live tv product. Once you use these 35 unbundled services, a small, skinny package, you are going to get rid of your cable subscription and you are going to move to it, because it is more effective for your family, specially if you have kids, to just have an account online and manage it all via an app. One last thing, eric, this is more broad on tech. We talk about the Market Action narrowing to these five big names on the nasdaq and yet others argue those are the names with secular growth in an economy that is hungry for secular growth. Are they overrepresented too much in terms of both sentiment and buzz and even valuation . I dont think so. I think we are actually just in the beginning of huge growth for all these names. The reason being is simple, networks effect. Facebook, apple, netflix, google, all these players are dealing with Massive Network effects that are going to get better with scale over time. I think the secular trends are there for these players to continue to grow. I dont think it is overrepresented by the market now. I think we are in the first inning of a very long ball game for these players. I would add to that, the facebook, amazon, alphabet, apple, and microsoft index, these companies now have virtual monopolies. They have figured out how to game the Justice Department and become monopolies that are immune to government action, at least here in the United States. If you look at google, they have just an amazing monopoly when it comes to search advertising. They know exactly how to avo atriggering what would look like a monopoly. They have always kept an anemic, incompetent competitor alive. Google had yahoo . They could have bought it or taken over their advertising. They didnt. You look at facebook. They have always had and zuckerberg has referred to it as a clown car. The incompetent twitter, which cant seem to get out of its own way. These are Perfect Little companies to keep on the side, dont buy them. Let them be independent so when the antitrust people come, we can say, there are options here. They built motat after moat. Google, chrome, one box. It is amazing the monopoly they have built that doesnt look like a monopoly. Whether other governments see it the same way we do. Good to see you both, guys. Nice meeting you. Thank you very much. We are going to bring you the latest from washington and the markets reaction to the president s firing of fbi director, james comey and service now, ceo, john donahoe, is going to join us. The companys earnings were just out stay with us. Lets get to seema modi. Stocks hovering around the 21month highs on a day when data shows french Industrial Production rising by a better than expected 2 in march so that European Economic story continues to get stronger. In the meantime, mario draghi defending the Central Banks Monetary Policy during a session with members of the Dutch Parliament who along with germany have been critics of q. E. Draghi telling them the european economy is increasingly solid and too soon to scale back stimulus. He hinted the ecb will change its message as tale risks of falling inflation recede. In the netherlands, the dutch court has set may 22nd as a date to hear elliot management complaints against akzo looking to oust the chairman among the shareholders dissatisfied with their rejection of takeover. Shares down 1. 5 of akzo noble. Img hosting a better than expected First Quarter profit helped by growth in core lending and new customer deposits. Also, take a look at french insurer, axza, announcing plans to take the u. S. Arm public, ipo, with billions to be used for investment in higher growth areas. Uk home builder, baron is one of the biggest home builders, saying they are on track to build more homes than they have in nine years. The European Growth story in terms of profit, higher or outperforming what we are seeing here in the United States. Seema, thank you for that. Lets get to sue herera. Good morning. Here is what is happening. By a 5149 vote, the senate has blocked an effort to overturn an obama era regulation restricting harmful methane emissions from oil and gas wells on federal land. It forces Energy Companies to recapture whats burned off at drilling sites. Defense secretary, jim mattis, visiting u. S. And nato troops during his trip to lithuania. Earlier, he met with lithuanias president saluting the country for their military contributions in iraq and afghanistan and boosting their financial commitment to defense spending the new south korean president says that he is open to visiting rival north korea to talk about its Nuclear Missile program. Moons softer stance on north korea could create friction with washingtons hard line approach. Last hour, we told you amazon is lowering its Free Shipping threshold for nonmembers to 25. Now, target is increasing its to 35. It was offering the 25 minimum since february of 2015. All right. Thats the news update this hour. Lets go back to you, carl. Sue, thank you very much. Markets trimming its losses to nine. Well take a short break. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. 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. Welcome back. President trump firing fbi director, james comey. Our amen javers has the latest. Reporter the president called the pool of reporters into the oval office a few moments ago. They are in there making their way back out to the briefing room. We are told the president was meeting with Henry Kissinger, not on the official schedule of meetings. The president addressed his firing of james comey, the fbi director, saying simply, he wasnt doing a good job. We expect we will see video of that momentarily from the pool of reporters that did go into the oval office. Meanwhile, over at the Russian Embassy on wisconsin avenue here in washington, d. C. , we are expecting a press conference from the Russian Foreign minister, Sergei Lavrov, who met with the president. They scheduled that for 11 30 today. Well see whether that goes off as scheduled. You sio figureses coming into the room. I believe that is lavrov. I cannot quite see from this vantage point. None theless, na that is him tag his seat. The russians have already put out a picture of lavrov mighting with President Trump. We havent seen any picture from the white house. The white house wa not allow reporters into that meeting. There is some indication they might release a photo of their own. We have not seen that yet. Lavrov preparing to take some questions on all of this. Fastmoving developments here within the past few minutes, john. Thank you, raymond. Meanwhile, market really doesnt seem to care about much of this stuff. Dow is down 16. A lot of that is simply disney on the back of earnings. The vix below 10. Our Mark Santelli and bob pisani join us. On a day where there are so many longterm questions, we are not getting many clues. A lot of people said this is going to be a political earthquake and move the markets. You can see by the Market Reaction that basically they are saying, this is a political event, not an economic or markets event. If we see some deterioration in Business Confidence or something down the road, maybe thats an issue. I heard some people actually try to turn this on its head and say, this may accelerate the Trump Economic Program as a means of putting all of this behind them to move a little bit more aggressively on the tax reform issue. I think thats an plausible an idea as any right now. We might have to interrupt you and take you to these live shots as we get them, those shots from the oval. Mike, i know what you are going to say. Tax reform is just a bonus if we got it. It wasnt priced in. We are moving on everything else. I think the market was a good test of exactly that. Basically, if it comes in 2018 event, thats okay. We didnt really need it for the 2017 profit numbers. You cant justify owning stocks at these levels. Bob, you make a plausible case this means gridlock. Washington is going to be bog down. In the gridlock year of 2017, stocks are up 30 . Carl, you said the market doesnt care about much of this stuff. They dont seem to care about much. We are stuck hovering below these highs. It cares about the idea that earnings are better and improving. Thats a notably lower risk. The economy is better. The Global Economy is better. Notably lower risk. Some movement on tax reform. Geopolitical risk is somewhat lower. A lot of things we were worried about are not that bad anymore. I dont think the market is irrational is my point. It seems like there is an argument to hb here. Maybe it matters. Maybe it doesnt. I dont think the market is in the business of trying to extrapolate this event and saying, this is what it is going to mean for interest rates, Corporate Cash flows, business policy, any of those things. It is not a market right now thats driven by headlines and gut feel and people at home saying this just doesnt feel right to me. Im going to sell right now. It really is this kind of institutional indexy market that seems like it is basically allocated towards equities and until some of the fundamentals complaining in our models, we are not going to make any sharp moves. It seems like the bigger question or the more common question is, bob, asia or u. S. Europe is winning that game, outperforming. To go back to johns question, volatility is lowered because overall risk is lowered. Think about why people buy and sell. Buyers buy because they think the markets are going to go up. Prices are high. They are not terribly enthusiastic. The sellers are not terribly enthusiastic either. Everyone believes risk is lower. They want the market to drop 5 to buy more. They are not looking for reasons to buy. Not a lot of enthusiasm from the buyers or sellers. You get low volatility. If russia continues to be a fixation for this white house and congress, will that eventually derail markets . Maybe they are not convinced that thats where we are headed. If it becomes a continued fixation and the top priority, is damage control, and trying to sort out exactly what happened, i think thats your gridlock scenario. D. C. Does what d. C. Does and the markets will essentially go their own way. Tell me what the punch line is going to be . Thats a flip from market betting on repatriation. That was a fiveweek event. Violent rotation on all these things. A little bit of a revival after the inauguration. Since march 1st, it has been the big five tech stocks, growth stocks, earnings revisions going higher. Not the repatriation . Thats a little part of it. Ten companies, essentially. There is some risk premium in the market for the trump trade definitely. Nobody would dispute that. Im not saying there is no premium in them. There is some premium. I think there is hope. Nothing, forget it, ever again. We are not getting tax reform or lower regulations or infrastructure spending. The dollar wipes all that down. It is basically the thing you have to follow whether you are going to get there or not. This is the president in the oval with nixons normer secretary of state and National Security director. It is an honor to have Henry Kissinger with us. He has been a friend of mine for a long time. Thank you very much for being here. Appreciate it. Why did you fire director comey . Because he wasnt doing a good job. Very simply. He was not doing a good job. Is that the meeting not at all. Will the new fbi director be thank you, everybody. If that was hard to hear, the question, mr. President , why did you fire director comey . He wasnt doing a good job. Very simply, he was not doing a good job. Did it affect your meeting with the russians today . The president says, not at all. A m amin jabers, we will see where that leaves us this day. Reporter we werent told that Henry Kissinger was going to be here. You saw the look on the face of the president , a very determined expression. We saw a similar expression on the face of the vicepresident , mike pence, who talked to reporters, up on capitol hill a little while ago and said that the president made a strong, decisive piece of leadership in terms of deciding to fire comey. The president saying he wasnt doing a good job in his meeting with Henry Kissinger. There are democrats already criticizing this meeting just second after it has happened, which shows you just how quickly things move in the news cycle in washington, d. C. Saying on a day when the president is being accused of knicks sewn yan behavior, it is ironic he is appearing with a nixon official at the white house, criticism coming from democrats. Supporters of the president saying this was a longtime coming and something the president needed to do. Well see Sarah Huckabee sanders briefing reporters in the place of sean spicer. You can imagine she will field quite a few questions about all of this as well, carl. The times is up with a new lead saying the days before he was fired, comey asked d. O. J. For a significant increase in money and personnel for the bureaus investigation into russias interference. The times is cited three officials with knowledge of his request. Given that and all other we have to work with today, people are going to chew on that. Reporter i think thats right, carl. I cant independently verify that. That would be evidence this investigation is picking up steam. That would be something that is of concern here at the white house. This white house doesnt believe there needs to be an investigation into any of this. They believe that there is simply no evidence of collusion between donald trump, his aides, or anybody on the trump team with the russian government in terms of the 2016 election. That would have been a concerning moment. So far, at least, we are told that the white house is not necessarily certain whether or not donald trump ordered this review by the Deputy Attorney general of fbi director comeys tenure. I asked Sarah Sanders that question at about 5 00 this morning. She told me she was not aware of whether or not the president ordered that review. We have gotten some mixed signals here about where exactly this came from, who ordered this review and what was the impetus and why was it happening right now. All of those are questions we are going to explore later this afternoon at the white house. A very Interesting Press briefing this afternoon. Get a front row seat. Reporter it will be one of the most interesting i have been do. As the markets digest this news over the president s firing of james comey, the s p is positive. First, Rick Santelli, what are you watching today . Im watching the markets. The markets arent watching washington. What they are watching is whats going on with these stable markets, boring, some say. Were going to take a top to bottom look at tenyear rates or should i say double top to Double Bottom look . Thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. 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A little more than ten minutes time. In case you missed it moments ago, we did hear from President Trump, in the Oval Office Meeting with former secretary of state, Henry Kissinger. He answered a reporter question, about the firing of fbi director, james comey. Listen to what he says. Why did you fire director comey . Because he wasnt doing a good job, very simply. He was not doing a good job. That was President Trump. Also, getting some headlines looking down from the Russian Embassy where Sergei Lavrov also met in the white house saying the Russian Foreign minister, lavrov, after meeting with trump, said we are not discussing sanctions against russia. They did talk mostly about the syria situation. He did say that trump indicated he wants to have a better relationship with russia. Of course, we were looking for any headlines on comey. Nothing to that effect right now. Looks like they discussed the security situation in syria, how to work around that and not some of the more dicey issues like sanctions and, of course, like the allegations that russia hacked the u. S. Election. As sarah said, s p has gone positive. Dow still down about 16. Lets get over to the cme group, Rick Santelli and the santelli exchange. Thanks, carl. An interesting day to talk technicals. Ill tell you why. So many, whether it is on the Trading Floor or on tv said that, fincke ir prints. In treasury market, maybe some of the most predictable prints, behavior patterns an one would ask why. Why is that . How can you say that . Because the time of investors that play, especially in the treasury cash market, they have certain behavioral character t characteristics that really dont change over time. Leet l e lets go to the charts. Beginning of 2013 to present day. The one thing thats most notable object treasuries is they love double tops and bottoms. You can see. In the 2013 era sh we had a 3 double top. When was the last time you saw 3 . Never since then. The other interesting fact is Double Bottoms. Now, i didnt start the chart far enough because i like the look of this chart, but if you remember, july of 16. Also remember july of 2012 because guess what. They were also Double Bottoms. In the mid 30s, which brings me to the point and the reason i brought that other Double Bottom in is because when youre coming off something as significant as a big Double Bottom separated by lots of time. At all time historic lows, the prioritized importance of that level gets elevated. So, anything after that one is really important. Not to mention, how it came out like a rocket ship off that level. Then it made the double camp. It is going to be extraordinarily difficult to take that out and if it does take it out, my guess is you go right here almost immediately. But for the time being, and weve talk ed about this, usualy go back and fill in thin territory. We didnt do it. 221. 80, very thin, november. But what we did do is just nicked in to a little bit, the low end closed 2016. Were going to play in that 23 to 260 range. Next time, well dabble between 180 and 2220. One thing i dont think youre going to see is the 260 area. One technician of a former life opinion. John fort, back to you. Thank you, Rick Santelliy. And meanwhile, service now has just released its state of works survey predicting 2018 will be the year of automate ed prize work. Joining us now, the former ebay ceo. Great to see you. Nice so to see you. I believe you had the goal of meeting about 100 customers in the first 100 days. I think youve accomplish ed tht early. What is going to happen with automation in the enterprise next year and a half . Why is dha net . Ive talked with 100 different ones and what theyre grappling with is digital transformation. Whats happening as consumers, the cloud based applications like some you were talking about in the show have made our lives simpler and easier. Theyve enhanced our lives and taken what is complex and made it simple. But technology is not always our friend at work. And the ceos want to use Cloud Based Technology like service now to simplify and streamline the work. Go ahead. We believe Machine Learning is going to be like electricity, but what were doing now is how do we take mp learning and work with our customers to help them use their data to deliver better customer experiences. I was having dinner last night with with a major retail customer. Their biggest fear is that it slows down when its getting crowded. Historically, what this it leader has done is monitored the serves that drive the point of sale system and when there was a problem, he addressed it. Now, using Machine Learning, he can be monitoring all the service. Its enhancing their tlifry and driving greater efficiency. I want to ask from an analyst today, says they felt like in a recent meet, you were more open to slowing down the use of stock based compensation. Do you feel the culture has changed especially since facebook started counting that in the way they release results, investo investor are push iing back on stock based comp . Weather got to look at what it takes to attract the best people. And thats evolving. And so, to date, weve had a certain approach doing that. The its worked very, very well and well continue too that. So how we evolve, i dont know yet. Ive been spending so much time with customer, but at the end end of the day, is what will it take to track great people. If you can, whats going to be the name cloud growth driver. I think over premise based software. Youll see the major cloud platforms. Service now worked a sales force all using Machine Learning to enhance the power of our cloud based platforms and drive greater value in companies, so i think that will be a major driver for all the three major cloud platforms. All right. Thank you, john. Ceo of service now. Thank you. A lot more in a moment. Dow is down 18. Things are headed. Where because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. A few moments ago, the times went with the story say ng the days before he was fired, comey asked doj for more resources for his investigation. A spokesperson now confirming to politico that was not the case. The market is going to have to digest these conflicting reports. One reason weve been in this range all day. Look at the price of oil. Its rocketing higher. 3 . Energy stocks are outperforming, big moves on those companies and disney shaving 18 points off the dow. To the half. The trump rally, why it has stalled out and if it can resume. With us for the hour lets begin with the markets. Stocks again in a tight range today. The focus scarily on the white house. And decision to fire james comey has us wonder whag it means for the trump agenda and