And spain. The roadmap goes like this gm motors Ceo Mary Barra on the hill to answer questions surrounding the companys controversial ignition switch recall. The s p and nasdaq looking to start down the road to a sixth consecutive gain as we head into the Second Quarter. The current fivequarter winning streak last accomplished way back in 2007. Activist investor starboard redoubling charges that dardens planned spinoff of red lobster is designed to benefit management over shareholders. If you see something fast, Say Something fast. Fbi launching an investigation, actually, it has launched an investigation already. We only learned about it, that it is looking in to High Frequency trading. Interesting how many stories have bubbled up on this suddenly. If we can get mary barra to talk about it, well have a collision of worlds collide. Shell have enough on her plate. Oh, my, this is big. Gm Ceo Mary Barra will be on capitol, and the hearings will focus on why they took more than a decade to recall vehicles with ignition failures. Barra says she cannot say why it took years for the safety defect to be announced but she adds, quote, as soon as we learned about the problem we acted without hesitation. We told the world we had a problem that needed to be fixed and whatever mistakes were made in the past we will not shirk from our responsibilities now and in the future. Todays gm will do the right thing. Thats as about as specific as theyre getting in terms of what theyre planning to do for the families with whom she met last night. Right. You look at the Coverage Today especially the times it looks like nhtsa is going to point the finger at the company and say they had data that they withheld. And you start getting into a toyota reverse situation, remember that, 2010 . I went back over to look to seeing what happened, because a lot of people are saying to me, jim, when does it impact the stock . Obviously the stock is down from 41, but when is there a second round because the stock has hung right here at 34. And there was a 16 decline in Monthly Sales for toyota. Toyota had really been on an upramp. You could argue gm was, too, and it just hit a wall. Thats what im looking for is the beginning of a double digit decline in sales. If we dont get that. Then gm is going to prove to be a buy, despite everything you hear. It will have financially weathered what is certainly a very difficult period with an uncertain end to it. In fact, we dont even know. Millions of recalls. But when youre reading stories like the one today that i was reading, i think it was in the New York Times, might have been the journal, about the cobalt, the car stopping out of nowhere. Right. Windows are falling out. You know, i mean, on and on, is that not going to perhaps have an impact as you point out right. Is it likely to i guess is the question. Its pintolike and that company survived, right . The pinto, remember, where you could yeah. You could have a rear end collision. Exploded. There is a remarkable thats not what were talking about here. Im talking about impact of gm sales. Of course, its going to survive. No, no. But i read that cobalt story and if you know you are putting out faulty merchandise you are not going to get through this thing unscathed. Obviously the damage control here, jeff i was listening to Jeff Seinfeld earlier talking about how they are upfront, they are not hiding. Now, that is true. And i like that. But what theyre not hiding about is horrendous. Yeah. Then theres also the additional recall for some of these power steering issues that was issued yesterday. They are kitchen sinking this well ahead of the hearing today. They ought to just call every car back and say, listen, were doing a little tuneup. Because it does seem to be a plethora. Ive been involved, my daughter had the toyota, we had that recall, very frightening. Very frightening recall. These recalls when i read the cobalt, i mean obviously this is core va corvair and ralph nader and unsafe at any speed. These are the stories we used to have. I find it very daunting. I got to tell you im somewhat sympathetic to her situation. Where are all the other people that were involved . This is a Great National story. Tremendous test of a new ceo. And i dont know, i think every single eye in the country is on this woman. The testimony will be interesting. Not the testimony, the q and a, of course, as it always is. What about the culpability of government oversight that were learning may have been turning. She does not seem to be willing to throw anyone under the about us which i think is a great sign of her integrity. I could easily say, look, hey, you know, before i got here, the government owned this thing. The government did nothing. The government must have known. Ceos must have known. She is not pointing any fingers. Other than herself. Can we just admit that is brave and i think kind of very iconic stance. By a ceo who is not saying, hey, dont look at me. Yeah. Id like to know what the general counsels Office Thinks about that because it was only after the private lawsuits started piling up that they got engineers together and said, hey, can we go back and look at this thing, what happened there and why have we been so quiet on this all this time. Its a great quandary and well all be its one of those periodically someone testifies before congress. It was the fat cat bankers before that i think well find riveting. It will be a lead news story tonight. Yeah. High frequency trading. Difficult, too, to read. A lot of the families are in d. C. Oh. Theyll be there today. Yep. You are talking about a family whose kid was behind the wheel and for years they thought she was asleep and thats why she crashed and only years later they realized that was not the story at all. Lets see if it impacts this Great American company that we all thought was making a tremendous comeback. All right, in the meantime as we get ready to enter the Second Quarter the subpoena and the nasdaq coming off five consecutive quarterly gains since the First Time Since 2007. And the dow ended down 0. 7 for q1. S p i love this, has made an alltime high for nine straight quarters. Thats the second best run in history and well see if it can do it again in q2. I gave a speech last night to a number of investors. At the harvard club. Im saying that because putting that out there. Doing it barnes noble white plains. Get around. Did you talk like this . I may have. Do you know what . What . People wanted me to. I came out, like, geez, who is this guy, what is the dems and dos thing hes doing. Isnt it a bubble . Its got to be a bubble. Thats question number one. I said, how many quarters can we have its a bubble before we have to declare its not a bubble. This s p number and people i guess retail is coming in now. I said, i heard that at every single one of these. Can we just stipulate something is going on here that is not bubble and that is not just retail being in the wrong place and if you look at the makeup of this last quarter, it was not the stocks that we thought were bubblicious. No. It was caterpillar. Cat, prike mimike romicrosof merck. Obviously forest had a takeover. Green mountain was cocacolas endorsement but when you look at these stocks, do you know what these stocks are, companies that have been around. This is not a cloud. This is not software as a service. Interesting i would assume some of the biotechs which people do want to put the bubble label on perhaps erroneously were amongst the poorer performers for the quarter. But i had a conversation yesterday with an old friend who is an extraordinarily talented Health Care Investor and has been. Right. He wont let me name him. But he made the point to me, do you know what, these things are not in bubble territory at all. Youve been making this point. Yeah. Multiples are as low in many cases as they have been. They are not at 40, 60, 80 times, the metamune and named the incredible multiples and, by the way, the risk that you wont get there on developing a drug is less. The transparency is higher. The chances are better. The multiples are lower. And there has been a transformation in the treatment of some of these key diseases including cancer amazingly enough that are really true advances in the science. Thank you. Gilead, fantastic article in the paper today about how 1,000 day but theres a course to be able to hepc. Gilead is selling at seven its going to earn 7 in 2016. Its at 71. Its cheaper than merck. Its cheaper than pfizer. And the treatment is cheaper, too. When you are taking Everything Else and everybody else had to do. Its a fatal illness. You can cure it. Yes. Celgene. Remarkable. Remarkable advances with multiple myeloma. Remarkable Breast Cancer franchise that nobody is talking about. How about an arthritis franchise that i can begging to get into the darn trial. 16 a share in 2016 and its at cheaper than lilly and merck. Say that again. Cheaper. I think you are right, baird is not a major house necessarily. I happen to love their work. Its high quality. We are starting to see the gilead number. Now, there are some people who say it will only earn 4 because they question whether bristolmyers has a better hepdrug, right now you can get in that anyone who has hepc listen to me. I have lost friends who had hepc. This is it, man. This is it. Wish we had this 40 years ago. Yes. This is a killer disease. 50,000 people will die from this disease unless they take the gilead pill. What is that worth . And the answer is a heck of a lot. So, those hmos that are pushing back shameless. You are also talking about now not having to take it forever, i dont believe some of these therapies and then its over. And then its over from the disease that people were dying from before this approval. And we know this is that fabled acquisition they made about phar pharmacet and its the greatest acquisition in the history of pharma that is not hyperbole because its a ten billion tran chic franchise. It was an 11 billion in that range. Great memory. It was 11 billion but they had the formulation, remember, bristolmyers bought a company that thought had the formulation and they wrote it off very quickly because there were two fatalities in the test. This is remarkable that you have now, these stocks are up huge, so someone says, well, wait a second, caching, caching, celgene up 12 . My Charitable Trust has been buying celgene. Can i tell you what an idiot i feel like . Because all i did was look at the valuation. Sorry. What else are you supposed to look at . You are supposed to look at the buzz. It has no buzz. Shame on you. I should have looked at merck, it hasnt had buzz since 1987 and suddenly merck is up. Its easily acquired if you have a multibillion drug. It gets you some buzz. I think this quarter will be a change in those stocks. A lot of people are telling me they are ready to buy. Its under way now. Trust in the markets and the fbi when we come back what the agency told cnbc about investigating High Frequency trading. Also ahead dominos game plan for growth beyond the final four. Well talk to ceo Patrick Doyle a little bit later on. Take another look at futures. Like we said, april the best month historically for the dow. Its off to a decent start and well be back live from post nine in a moment. Say it again i said lar vorte, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. The fbi has launched an investigation in to High Frequency trading. A Bureau Spokesman tells cnbc the probably is still in its early stages and is looking in to whether that practice violates any Insider Trading laws. On other agencies are working with the fbi on the case coincidentally where Michael Lewis is on the today show and will be on power lunch at 1 00. Well timed . Geez, that guy is powerful. If i ever write another book, i want him to plan the whole thing. Yes. In fact, id like him just to prevent hes me and that way i would actually get some attention. I dont know if he wants to do that. I dont think he would. No. The point is the New York Times has three separate stories and a review of the book. Sorkins column. And a story on fht. I thought the fht and fbi story was confusing. Is it the front running that Michael Lewis talked about . Is it some of the Great Stories that eamon javers has broken . Meaning information getting to you first. Yes. Thats what i want to hear. Are they after people who are buying something ahead of you who its also about false orders and trying to create the illusion of an order trail thats not really there to try to draw people in. Its not clear completely. The times has another piece where they profile algo writers, guys who write algo rhythms for the firm, and the last line is the last time i checked its not against the law to use your brain. Theres no unfair advantage for using your brain. Yeah. Lets also remember the s. E. C. Has been very profinancial innovation whether theyre you know, it hasnt liked they ruled did you ever see a ruling which said they dont like highspeed, highfrequency trading . You know, if the fbi is investigating something thats legal, that would be curious. Right. And not to come back to it, too, weve talked about it so often, but in terms of the exchanges and the reliance they have on the revenue stream from collocation, something that Andrew Sorkin in his column today does point to. And what weve talked about so many times here which is how much of volume is actually 7 . Related to High Frequency trading, therefore, masking what is otherwise extraordinarily low demand for stocks. What will be interesting to see is Michael Lewis, the ripple effect, is that it really is the powerful coalition in favor of High Frequency trading is underrated in all of these articles that ive read. They got they got the horses, okay . They have the exchanges. Which many people feel the s. E. C. Is bound to listen to. They have a lot of Different Companies that say that theyre doing good things, that they present themselves with a white hat. The s. E. C. So far has agreed with that. So, does the s. E. C. Read this book and say, do you know what, weve been backing the wrong side . I dont think so. Big splash. No change. Well, the times does review the book. Janet mazlin reviews the book and her line is its guaranteed to make blood boil. Right. Which is probably obvious given the reaction so far. Yeah. Well, look, i just look, the coalition, i mean, ive been railing against these guys for years. I remember i had senator ted kaufm kaufman, a great senator, Wharton Business School grad and understood the markets. He told me, jim, stop wasting your time. Stop. Not going to change. Now, im not Michael Lewis but no. I mean, Michael Lewis, does the s. E. C. Say Michael Lewis, one. S. E. C. , nothing. I mean, is that the way it works . It may. When we come back, well get cramers mad dash as we count down to the opening bell. Take one more look at futures. Chris evans, captain america, will ring the bell and well get when squawk on the street from the nyse continues. Go on take the money and run save you fifteen percent or more on car insurance. D Everybody Knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You have. Oh boy. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Everybody talk now all right. The clock tells me we have a little more than seven minutes to go before we get an opening bell here on this tuesday and that is time for the mad dash. Ebay refused to go down after carl icahn got involved . Yes. Darden, missed quarter, missed quarter, missed quarter, missed quarter. It wont go down because of starboard, starboard reveals its game plan for olive garden and red lobster and said its not about the split into red lobster which they think would be kind of a joke since red lobster is doing so bad we can talk more about it. And Clarence Otis has been saying, listen, we can make the second km about olive garden which is only minus 5 same store sales. Thats a remarkable decline. They think the real estate, starboard thinks the real estate has great value and dont forget they want Clarence Otis fired. It is a complicated transaction, the situation in which by the way, they first have to get consents to call a special meeting to try then. Theres no vote on this split. Shareholders dont have a voice on it unless you get consents to call a special meeting, then you are in a position to actually say you cant do this and to toss the board, by the way. On the real estate no one gets to vote on it . Hey, lets split the company, what the heck . You can do these kinds of things without necessarily a vote. They are saying that the real estate that would reside within red lobster is inefficient from a valuation and a tax standpoint. It would be much better off split out. Theyre talking about red lobster being traded at about 6. 5 times ebita which would implii imply the rental portion of its remember onethird of the income would be worth to a real estate owner at about 18 times. Theyve a real estate adviser here so they are not just winging it. Its an endless presentation from starboard. T