tv Closing Bell CNBC March 3, 2015 3:00pm-5:01pm EST
$80 a share, down by more than 4%. we're going to solve the riddle what going on with baba tonight. >> no hot cakes, you aren't going to solve the griddle. >> i rolled my eyes. >> of course you did. thank you for watching. go to powerlunch.cnbc.com. "the closing bell" starts right now. and welcome to "the closing bell," everybody. i'm kelly evans here at the new york stock exchange. and welcome back. >> thank you. i'm bill griffeth. allegedly you closed above nasdaq 5,000 yesterday for first time. >> you missed the big day. it looks like we'll have another day to close above 5,000. >> somebody apparently took a stop watch to it and we were above 5,000 today for about 45 minutes and then it fell below that. we've had this sell-off today on wall street for a number of reasons but we're wondering if we can turn things around. the dow -- the nasdaq right now is down 30 points. the dow was down 150. it's off that low right now.
>> more fallout and reaction to our exclusive interview with billionaire investor stan druckenmiller. his critical comments about ibm prompting bill miller another famed investor to take to twitter in defense of big blue. we will show you what both said and hash out who may be right. >> two very smart guys two very different opinions on ibm. and later today we've got tony robbins, his first book is out in nearly 20 years. it's all about money and gaining financial freedom, which by the way, coincidentally the same thing cnbc and this show is all about, but tony robbins will be here at the new york stock exchange later on "closing bell." >> a lot coming up. here is where we stand. an hour to go to the close. the dow is off 89 points. weak session across the board. earlier today it looked like a mirror image of the gains we saw yesterday. a couple of differing reasons as to why that may be going on. maybe just some profit taking. a banner day yesterday with the nasdaq closing above 5,000.
today at the moment giving up 30 points. >> a lot to talk about in today's "closing bell" exchange. let's do it with amy wu david kudla from mainstay phil brancato with us at the new york stock exchange and rick santelli is there in chicago. amy wu you know you follow the mood of the market the volatility, the options trading. what did you think as the market was crossing that 5,000 level yesterday and now we're pulling back. what's the market doing right now? what's the message here? >> well from the options perspective, obviously volatility has come in a good degree, especially in the front end. one thing here seeing a hedges aren't being taken off. they're just being rolled out further. so what that tells me is concern in the options market still exists. it's just simply being pushed out to june being pushed out to august. it certainly has dissipated. >> it's interesting. we're keeping an eye on some of the different parts of this market under pressure today as well.
david kudla, what do you think is going on today? >> well we did have the nasdaq climb above 5,000 and a little bit of profit taking on that. we think investors, you know, need to look at their portfolio, where are you allocated now? we think biotechnology and technology, there's been some concern, but we think they have further to go. look to europe for some opportunity with the dollar hedged investment in europe, more prodbroadly international. we think there's opportunity there as the u.s. market continues to move to new high approximates. >> phil we've gotten how many months, a couple years without a 10% correction. this market -- now we're at 5,000, a number we hadn't seen in 15 years. is this the end of a time frame for you or are you still going to see this market go much higher from here? >> i'm still very bullish on the market. i think when you look at the nasdaq for example, simple fun fact, you have a 1.4 average rate of turn over the last 15 years. that's nothing compared to the s&p. add to that back in 2000 1/10
of the yield of s&p you got out of the nasdaq. today 60% yield you get versus the s&p. that's a telltale sign for me there's still strength in stocks. the best opportunity will be small and mid cap. as the dollar gets stronger the u.s. economy heals, i think you will see success in small and mid. i don't hate the nasdaq here. i think the valuations are fair but i think you'd have more opportunity in small and mid. >> but you are at all time highs for the russell and the midcap. they have been setting all-time highs but you still see value. >> but think of what we want. we want a strong consumer. i know the consumer is not spending at the rate we want. part of that is in the dynamics the older crowd that is earning money is saving some of it but the health of the consumer has improved year over year, quarter after quarter. if you continue to get that, you will spet for for the market and further strength from here. look at the sales number. look at the earnings outside of energy for the first quarter.
they look great and that's where the support for the market is. >> in a way this week is all about a build up to friday's jobs number. i wonder if the auto sales -- i know you're passionate about cars. tell us something about the impact we could see from the weather, perhaps the port strike. will there be variables, rick you think this will make it harder for us to interpret. >> i think when it comes to autos, we're going through a cycle. i think that makes sense. i worry a little more than phil "four on the floor" lebeau about the subprime percentages. i think tomorrow's adp and friday's employment report i think thursday's ecb is more important. there's a lot of talk after the activists regarding corporates but you have to weigh that against the scarcity of good securities in general. to me you have to go counterintuitive here. all the deep pocketed kind of old primary dealer players and marketmakers whether in
corporates or treasuries have decided that's not a profitable business, so all the flippers are now in control of the markets. the day traders. and i think their attention will turn towards mining some of the fairy dust of the ecb quantitative easing thursday, and as i look at what could be the second highest yield close of the year in 10s that's what i read into the way treasuries are moving right now. >> let's bring everybody up to speed on that rick. the anticipation thursday as we get more clarity, more transparency about what the ecb has in mind about its quantitative easing program, what are you guys expecting to hear at that point? how extensive is this program going to be? >> well i think it's going to be extensive in terms of what it purchases and i think traders want to continue to get in front of the buying that the ecb is going to do but there's other issue was that common denominator with the word scarcity. they're going to be buying more bunds than anything else so german savers will get penalized the most and it will be hard to
draw the kind of numbers they need in some of the security markets, and those are all factors traders will be paying attention to. >> everybody stay right there. we will bring another guest in with a story we've been following. john is the ceo of mizuho usa. are you surprised we're not following through from yesterday? i want to talk about a deal you talked about and you announced last thursday. just following this market right now and what's going on with the stock market these days with nasdaq 5,000. >> sure. i think that the market has been looking for growth and innovation, especially in equities, and i'm surprised that the nasdaq hadn't hit 5,000 before yesterday because it's been underperforming the rest of the markets. our institutional clients had been buying here in front of year end -- in front of quarter end in order to get invested. >> john let's talk about what you guys are buying here and that's basically rbs' book of business. >> here in the u.s. >> how transformative is a deal
it for your presence in this country? >> we're really excited about this deal. it's transformational for us. it's a huge opportunity for us to catapult our corporate and investment banking business to the top ten and then we go from there. >> how much of this has to do with the advantage you might have from the quantitative easing in japan, looking for the buying power perhaps overseas et cetera. in other words, is this just a strategic move from a u.s. opportunity point of view or does it go back to the likes of what we've seen from softbank making inroads into corporate america? >> i think everything is tied together. it's a global economy. i've been speaking about japan buying assets, booipuying equity buying outside of japan. they need to get more yield. this is another extension of that. it fits well with our business. we've been seeing these deals with softbank and other deals. we have a very successful investment banking already. this is only going to give us a
turbo boost into a different stratosphere. really, really excited. >> david, let me get you to comment on that. here is japan's second biggest lender, they're bleeding cash they have to put some of that to work to get a greater return on their money and they're looking to the u.s. loan portfolio of the royal bank of scotland here. do you think we will see more deals like that? what do you make of that? >> yes, i do. i agree with john. you've got japan with massive quantitative easing relative to its economy, largest of any country in the world, and they're looking for a place to -- for assets to purchase and we're seeing deals -- we're seeing money move acquisitions outside of japan where they see favorable opportunities. and i think we're going to continue to see that. >> and, amy, what about the impact as well this record corporate debt issuance is having. i'm thinking of the deals in the financial space this is being used for, deals outside the financial space, refinancings, financial engineering, whatever
you want to call it. what kind of impact ultimately is that having across asset markets before we go? >> it's a great question. i think a lot of it has to do with a lot of corporate debt is used for buybacks. there's constantly the search for yield. i continue to like selling puts on buyback names to collect yield, which a lot of people are searching for right now in the debt markets, and the other thing i like with this big trade-off in quantitative easing is everyone is playing the outperformance of europe versus the u.s. i would do the opposite. i would look at efa hedges where you can get $1 in and get $10 out in terms of the high payout spreads right now which are what look attractive to options. >> i'll take that. >> what we're seeing here phil is we are still an attractive house on the block because of our yields relative to what you can get overseas. you got all kinds of bond buyers coming over here. now a japanese pank coming over here to buy up the assets of a scottish bank in the united states because the return is much greater here. >> well what would you rather
own, an italian 10-year or a u.s. 10-year? it's obvious. where would you want to put your money? let me go back to something kelly just asked. >> ecb is going to be buying italian bonds. >> that will keep yields low. it will put pressure on our interest rate. add to that if you're a pension fund manager, where would you rather put your money, the ecb will have no choice but to keep bond yields low. conversely, it will have an external impact on our bond yields. so even if the fed tries to push rates higher they're probably not going to because of the pressure on our market. >> one thing about what kelly said. >> very quickly. >> you talked about corporate bond issuance. very important. when you said where is the stock market going? i think it's a telltale sign. the more the corporations delever, lower the interest rate and short cash the more we will have for cap ex in the years ahead which will drive the markets higher. it's a telltale sign that there's still strength in equities. >> we can only hope. >> what happens when you get the
october 15 sell-offs in an illiquid corporate market. will stocks follow that as well? >> the identifies ofs of march are coming up. >> thank you for joining us. >> very much appreciate that. >> we have some breaking news on that homeland security bill. john harwood, what's the latest now in the house? >> bill, the house of representatives has just passed funding for the department of homeland security through the end of the year. that ends a political headache for house speaker john boehner who was concerned that republicans were going to get blamed again for a shutdown of that department. you had a vote in which by 2-1 republicans voted against this funding bill. they're upset, of course about the president's immigration order, but there were enough people voting in favor of it that they joined with democrats to make a majority well over the 218 votes they needed. i just got off the phone with a republican member of congress who said i hope that the irreconcilable opponents of
speaker boehner and the dealmaking that he's got to do to govern effectively will learn a lesson from this fight. we will see going forward. they haven't after the previous shutdowns that republicans participated in. >> john thank you. that's our john harwood with the latest on that homeland security fight. >> a busy day for speaker boehner. >> a busy week as always seems to be the case. 92 points lower on the dow. all retreating from record high territory yesterday. the nasdaq meanwhile having a pretty good year up 5% but trading back below the 5,000 mark. >> coming up angel investor and about.com founder erer scott kurnit gives us his take on nasdaq 5,000. we'll find out what this dotcom crash survivor makes of the latest market. >> up next a top new york financial regulator sounding the alarm about an arm gedon onarmageddon-like attack on banks.
benjamin lawsky when we come back. you can call me shallow... but, i have a wandering eye. i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro.
you just got a big bump in miles. so this is a great opportunity for an upgrade. sound good? great. because you're not you you're a whole airline... and it's not a ticket you're upgrading it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ ♪
could happen within the next decade, maybe sooner and could significantly disrupt our financial system for a period of time. >> joining us now is that financial regulator and a cnbc exclusive. ben law ski is new york state superintendent of financial services, and you have used the term cyber 9/11. that is a major fear in the financial community, isn't it right now? >> it is and it should be. look we want to prepare for the worst and hope it never happens, but if we look back on even 9/11, which was obviously a really tragic day for all of us, a lot of people say it was a failure of imagination that led us not to prepare adequately for what occurred that day. we don't want to have the same thing happen here. we want to really imagine the worst case scenarios. obviously hacking is increasing in sophistication every day. the financial system and financial firms are clearly targets, and we really need to make this and elevate this to a ceo issue and there's a lot of concrete things firms can be doing now to protect themselves. >> your office has been
criticized in some cases for using your position too much to influence banks, but in this case perhaps that could come in handy. how far are you going between raising alarm and drawing attention to the issue and forcing banks to do more to comply and improve their security, et cetera? >> it's interesting. i don't know that we will ever have to cross that bridge exactly because the response we're getting from the institutions is we know you're right, we want to work with you. this is really something that both regulators need to improve on and the firms need to improve on and it's going to be a collaborative process. we'll sink or swim in this together. >> you have said you would write new rules to force them to do this. that seems to suggest they're not doing what they could possibly be doing to protect themselves. i can't imagine that they're not doing what they possibly could at this point. why wouldn't they? >> i think a lot of them would, and many of them have been doing what they have been thinking all along was the right thing to do better perimeter security better fire walls, but there's
other new threats we're spotting, for example, third party vendor. a bank may be spending millions of years on security but they have an hvac provider or a law firm and if they don't have adequate cyber security they can be a backdoor into the financial firms. we're talking about getting reps and warranties from all your third party vendors and incorporate them into your contracts. if they don't live up to it they don't get paid those vendors. it will raise everyone's level because no matter how good your own internal security is ultimately it's only as good as your worst third party vendor. >> that goes back to the housing crisis. a lot of it is who is to blame, who is at fault when something goes wrong? is there a legacy from that peered you're trying to incorporate into preventing this next go-around? >> i don't know, there may be an analogy there but for us the
focus is on upping everybody's preparations and upping everybody's levels of awareness. there's so many things we can do. i will give you another example. our internet architecture has developed with a user name and password system. you probably both use it when you sign on every morning. guess what? very insecure system. easy when you're running a firm of 20 30 40,000 people to get one of them to give away their password. if they do, you give everyone access to your system. we need to move to a system with more than user name and password. >> how long will that take? we know of some of the hack attacks that have occurred on banks, on major retailers, and we keep hear being the improvements that will occur whether it's chip technology on cards or a new system of accessing our accounts online. but this takes time. how much time are we talking about here? >> look i think the time for talk is about over. we need to act, and that's why we've begun speaking about
issuing regulations that just start requiring things. >> putting a time line on things. >> and just saying you need to go to multifactor you aauthentication or you need to get these warrantyies from third-party vendors and by the way, we're the entity that examines the banks and the insurance companies for their safety and soundness. guess what? you're cyber preparations are going to be part of that safety and soundness process. we can start doing all those things and i think while you're seeing us up the level of dialogue about this the time for chatter is over we need to really act. >> but are you going to be there to oversee this implementation? how much longer are we going to see you in this seat and in this position? >> look, i have made no decisions about my future yet, but i do want to be clear, what we do at dfs and most regulators would say this is not a function of any one person. we have a great team. we have a governor who has given us a mandate, and that's going to happen no matter who is in the chair but i have made no decisions about the future.
>> ben lawsky the new york state superintendent of financial services joining us at post 9 of the new york stock exchange. >> thank you for having me. >> appreciate it very much. we have 40 minutes left on the trading seths here. the dow seems to have plateaued here. we're down about 100 points 97 points. down 150 at the low of the day. nasdaq down 31, and as i mentioned earlier, somebody took a stop watch to it. for 45 minutes today we were still above 5,000 and then fell back. >> and 40 minutes to go until the close. we'll see if it can fight its way back bill. up next the battle of the titans. stan druckenmiller criticizingib ibm yesterday. today bill miller defending big blue's buybacks on twitter. we'll have the blow-by-blow when we come back.
barbara just bought a bike. she wrote a tweet about it. you can't learn much from that. but take data from millions of tweets combine that with your company's supply chain and sales data. apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. because barbara and the world just told you how to build a better bike. there's a new way to work and it's made with ibm.
welcome back. we have breaking news on target. courtney reagan has details on that. what's going on court? >> yeah, that's right, bill we actually are standing just outside the doors of target's investor day here in new york city. currently presentations are still going on but cfo john mulligan just giving us targets' full year 2015 adjusted earnings
per share of $4.45 to $4.65. the street had been looking for $4.50. i understand shares are gyrating just a bit in response. 2% to 3% total sales growth. this is for the full year 2015. digital sales expected to grow about 40%. cap ex spending between $2 billion and $2.5 billion. $1 billion will be used to invest in the supply chain and for technology to enhance the capabilities of getting goods faster to consumer when ordering on online. target's cfo saying the adjusted eps for 2016 should be 10% with 1% of comp growth. they expect to be able to resume the share repurchase again soon. bill back to you. >> all right. courtney, thank you. they also were talking about revamping their grocery store component to attract millennials
by offering more granola and yogurt as opposed to prepackaged food. we have been eating that sufficient in california for years. i don't know why you millennials are eating that all of a sudden. >> we were talking earlier target is the place you choose from 5,000 snacks that sound healthy but really aren't. >> dom chu, what are the other movers on wall street today? >> bill first of all, i remember that conversation because i was part of it earlier this morning with kelly about that whole snack food thing. let's talk about some of the other movers. lumber liquidators. coming off session highs. today analysts upgraded the stock to a buy rating saying the fears from a report earlier this week are overblown. 4.5% to the upside. sea gate down 5% after it was initiated as an underperform rating. with a $50 price target. discovery communications
rallying today after the company said it's going to put more effort and money into a free ad supported on my network called seek er seeker. trying to lure millennial type viewers. >> and you can nosh on granola and yogurt while you watch. >> warren buffett saying ibm stock was cheap and stan druckenmiller telling me with all due respect, warren is wrong. >> my guess is looking at the situation, kelly he thinks ibm's problem is cyclical. i think it's secular, and if you think a company has a secular problem, particularly with sales being lower than they were six years ago when the economy was much worse the last thing they should be doing is buying back stock. but if it's a cyclical problem, i'm sure it will work out, but
the market will ferret this out and one of us will be right and one of us will be wrong. >> well those comments got the attention of one high-profile tweeter, bill miller. he saw that interview and he had something to say on twitter about it, didn't he? >> he side cyclical or secular does not matter. issue only is whether the stock is undervalued. he also says look if the value is zero in ten years and the market is pricing it to be zero in five years, then buybacks are a good idea bill. >> so whose side are you on? who is right about this? joining us is ross gerber from gerber kawasaki in los angeles where they eat granola and yogurt and david nelson. david, you were with us recently and you were talking about this very issue regarding ibm, whether they are in the midst of a secular decline. >> stan is right. they are in the midst of a secular decline and regardless of whether or not you think the stock is cheap or not, it is cheap and it deserves to be
cheap. i suspect that this company given it has no growth it's been declining -- revenue declining, earnings, they're expected to make 16. growth has slowed and they're going negative this year. it probably deserves a multiple of maybe less than ten. puts it somewhere around the 140s. >> ross are you defending their strategy here? >> well first of all, i have a saying at my firm never bet against warren. it's a pretty straightforward rule we have but ibm is cheap. it's ten times earnings in a 19 times market. everybody hates it. it's all these things but yet it's been around forever, and now they're investing more in growth areas like the cloud and super computing where they can really start to beat and we have better global macro tail winds coming which will help ibm moving forward. if you think five years down the line,i bm is one of the cheapest stocks in the market right now.
>> it's going to take a lot longer than five years. we heard the buzz word cloud. that's what's going to save ibm. they have a run weight of $7 billion. even if i'm generous and i give it a 15% growth rate it's going to take nearly a decade to get to $25 billion where they need to be to be a player. >> but the real question is are they doing the right strategy as they have been with a lot of these buybacks because they effectively are fighting a losing battle or should they have been doubling down pouring all this money into investments -- >> i think the buybacks are a waste of money. they're averaging $13 billion a year in buybacks. think about how much capital that is. that's capital that's being taken away from r & d, building of plants hiring more workers, and building new products. they need better products. >> yeah that's the thing i always look at ross. the buybacks are great for shareholders and the stock price going up because you have less shares on the market but is that the best possible use for a company's capital in the scheme of things? >> well when you say a company's, it's a great use of capital for apple but i agree
it's not a great use for ib m. i agree 100%. they need to be investing in the future and they have capital to do that. moving forward they're not going to be spending as much money on buybacks and dividends. what they're going to be doing is investing more. so this switch is one of the reasons why i'm more bullish on ibm. >> we'll leave it there, gentlemen. thanks. ross gerber and david nelson on ibm's corporate strategy. saudi arabia raising oil prices. we'll go live to the nymex. first, here is sue herera with a cnbc business news update this hour. >> thanks bill. here is what's happening. the house passed a clean bill funding the department of homeland security for one year. that bill now heads to president obama for his signature. the associated press reports a justice department investigation has found patterns of racial bias in the ferguson missouri, police department and at the municipal jail and court. the full report could be released as soon as tomorrow. federal reserve chair janet yellen is convinced the drop in
oil prices is temporary and has put that belief in her investments. she held onto shares of conoco fill linsphillips and phillips 66 shares. she reported total assets estimated between $4.9 million to $13.3 million according to her financial disclosure statement. edward snowden apparently wants to come home. his russian lawyer speaking at a news conference has written a book about the formern as contractor and says snowden wants to come back to the u.s. that's the cnbc update this hour. "closing bell" returns after a quick break.
you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance.
about 25 minutes left. slowly coming off the lows of the session here. the dow was down 150 points. now down 77. nasdaq is down 26. yes, back below 5,000, and the s&p off the all-time high hit yesterday down eight points. >> bertha coombs is joining us to talk kale, chia seeds and the nasdaq. >> i said earlier i don't think this is peggy lee's there all there is. one of the things we're watching is apple. apple kind of tested 1 1/2 week
low, held there, and now is back in the green, back above $129 a share as we head towards a close. that's a good reason why we have come off the lows here. but what we've seen is a rotation out of a lot of popular sectors. yesterday it was chips that were hot. today they're cold after a downgrade of micron. seagate getting some negative analyst coverage. disappointing results from mylan labs. biotechs are also being sold off except for some of the diet drugmakers. back to you. dark chocolate all the way. that is millennial food. always and forever. >> talking snacks all day here on "closing bell." you know nasdaq 5,000 has us looking back to the dotcom boom
and before there was the nasdaq before there was the tech boom there was prodigy. there's a name i haven't heard in forever. a dial-up service. it was the start of the future. i remember they asked me to do a chat on prodigy probably 1993 '92. i had no idea what that meant. i had no idea what was going on but we did a chat with cnbc viewers on prodigy. >> it reminds me of that katie couric bryant gumble commercial that aired during the super bowl. >> and then about.com sprung up. >> it was eventually sold to "the new york times" but founder scott kurnit the marn behind about.com and prodigy became a serial tech starter-upper it says here. he joins us to talk about nasdaq's return to 5,000 and the
state of the tech economy then and now. scott, good to see you. welcome back. it's been a while. >> nice to see you. two things i'm hoping milk chocolate will be okay at some point, and because you did a lot on ibm, ibm and sears were really the owners of prodigy. cbs bailed pretty quickly after they started it. so it was an ibm/sears fiasco i think we'd call it in hindsight. >> i look back on the '90s and all the tech startups i like to say at the time that technology was coming up with answers for which there were no questions yet. you know the technology was there, but we didn't know what to do with it. now we do. that's a big difference between then and now, isn't it? >> well it's interesting. that's true. i like to look at whatever people are doing in the real world and how can we transfer that over to tech. so we're in the shopping business. we think we do it better and more interestingly than what happens in the real world, but look at something like facebook. there's a business that's obviously enormously skuk sesful
that's not really a replacement for something. i didn't have the ability to talk to all of my friends as i do. so i think it's a mix even today of inventing new things we didn't know we needed and then something like an uber which is just a new convenient way to get a black car. >> let's talk about the exit strategy for a lot of startups. it has to do with big pockets coming in and buying them. it was "the new york times," right, that had snapped you up at the time. talk a little bit about valuations then and what you think about valuations now for some of the startups. >> well it's interesting because it was -- one of the things i'm proudest of 18 years later it's alive and it was primedia then to "the times," then to bac. in we had a market cap of $7 billion. the world has changed. we're on the internet way more than they were 15 or 16 years ago because we keep the internet in our pocket whereas before we
had to have it on our desktop or on our laptop. so the business the whole marketplace of the internet is greatly improved today than it was 15 years ago. >> where is it going? they're talking about with net neutrality turning it into a quasiutility and regulating it. >> i have been vocal on the debate. what's so interesting is all we're doing is rationalizing that which has existed. if we go back to the dawn of the internet 25 years ago, nobody actually had the guts to create a two-speed internet or to violate what was effectively net neutrality. interestingly, with comcast, your parent, and net flikts kindflix kind of walking into a backroom and say let's speed up or charge more for netflix in the last mile things changed, and it's only then we get into the title two kind of situation. we're really just now kind of
regulating the internet into its unregulated prior system. so i'm a big fan of what we're doing. it's what creates the entrepreneurs that don't have the big gatekeepers like we saw in the cable industry. >> we have to go but to be clear then, scott, you totally support net neutrality and what the fcc just did to maintain what you say is effectively the status quo? >> that's correct. what we've just done at the fcc is to basically continue what we've had for the last couple of decades. >> okay. >> cool. well, i had fun on that prodigy chat. i had no idea what i was doing but it was fun. scott, good to see you. >> good to see you. >> 18 minutes left in the trading session. haven't seen art come by with any notion of the imbalance whether it's up or down but the dow is down 93 points right now but the nasdaq 22 points now below nasdaq 5,000. >> much more ahead on today's pull back. 18 minutes to go when we come right back.
stay with us. you, my friend are a master of diversification. who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? right back. the answer is yes, it can. so, the question your customers are really asking is can your business deliver?
the markets. the markets off the lows but pretty much a broad-based decline. a number of reasons given for that. auto sales numbers, concerns about chinese growth concerns that the earnings guidance here in the u.s. hasn't been positive. all of it contributing to the pullback. quick check of the dow components that are pacing the decline today. some of the leaders yesterday, including cisco, 3m and united health. boeing continues its march upward. the best performing stock in the dow so far this year. semiconductors were leading the group yesterday, reversing those gains today in the semi-conductor index having an impact on the industrials and i.t. stocks. energy is an area of strength as we see gains in the price of oil. also alson abors industry coming up with weaker results but seeing improvement quarter over quarter in the drilling business. alibaba trading at its lowest level since its ipo. one trader telling me there's a lock up expiration on march 18th
of over 400 million shares and that's at play in its almost 3% decline. >> thank you very much. i'm watching target shares. they picked up pace here and we have some breaking news on that. courtney reagan is back with us. they have a lot of news there all of a sudden don't they? >> yes, that's right, bill. there is a lot going on at target's investor day. presentations still going on. we wanted to bring you more detail about the $2 billion in cost savings target is outlining never the next two years. part of that will come from a corporate restructuring at target headquarters. they will be eliminating several thousand jobs over the next two years. brian cornell basically explaining this is about making the complexity as low as possibility, keeping the process simple, and getting ideas to market as fast as possible. we understand these job cuts will come across the board when they come over time over the next two years. again, to make processes more efficient at headquarters. the elimination of several
thousand jobs from the target headquarters. bill, kelly, back to you. >> and it has rallied back from the lows of the day apparently on that news. thank you very much, courtney reagan. we've got 13 minutes left in the trading session. dow is down 97 points as we mentioned. the nasdaq still down 30. we'll come back. we have volatility hitting stocks today. nasdaq 5,000, we barely knew ye. and this has been the second busiest day for corporate issuance in america and we're going to talk about one of the biggest deals that came down today and the lead on that and art cashin just now telling me the imbalance is to the sell side, $400 million of stock to sell going into the close. kelly and i are back in just a moment. alright, so this tylenol arthritis lasts 8 hours, but aleve can last 12 hours...
it's a fact. kind of like shopping hungry equals overshopping. now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you
purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. inside the ten-minute mark as we head toward the close. a down day. turnaround tuesday, i just made that up. down 93 points on the dow. s&p down 10 points. >> joining us now, john from miszhuo hoe. we brought you back because today is a historic day. yesterday it was about nasdaq 5,000. today it's the corporate -- >> the demand was unbelievable.
we had a $21 billion deal. second largest corporate bond deal in the history of the market. largest deal in ddd minus in history. our book we had the subscription of over $90 billion. >> let's say that again. it was the second largest corporate debt issuance ever. >> over $90 billion of interest. >> and the demand was there. >> we had salesmen coming up to me saying they hadself institutional clients with multiple billion dollar orders. we had over 900 separate institutional clients in the book. >> wow. >> the participation was fantastic. it was extremely well received. >> what is driving demand? who are all of these players that want to hold onto this debt for a name that as you mentioned is not exactly investment grade and not exactly sporting the juiciest yield. >> well, you know what? the yield is actually pretty good and it is investment grade. so it's the yield.
people want yield, kelly, and we've been seeing it all around and it's insatiable thirst. we saw it last week in the equity offering that we once led as well. $5 billion in convertibles, $4 billion this common stock. we had close to four times oversubscribed on that. >> are we going to see a rush to do more of this before the fed starts to raise rates do you think? >> this was on the verge of an acquisition. so this was -- we had bridge finance -- >> special situation. >> it was a special situation, but, yes, corporate america has a very strong balance sheet because of low interest rates, will continue to do this. >> congrats on the deal. >> thank you very much. >> we're going to come back with the closing countdown in a moment with the dow down 93 points. >> and then after the bell -- >> but i can guarantee you this, the days when the jewish people remained passive in the face of genocidal enemies, those days
[ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. these days, the most important person in your business could be a software developer. so, how's the app coming? we've got to make something great. how's the app coming? we've got to do it fast. let's do this on bluemix. you can build apps with analytics, big data, even ibm watson. that could give us the edge. let's do this on bluemix. it can provide code for you. we could be first to market. because being best is priority one. being first is priority one. there's a new way to work and it's made with ibm. opportunities aren't always obvious.
sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. welcome back. time for the countdown. about 3:30 left to the close. here is what the dow did today. never positive. no question selling from the open this morning, and it just
continued. the lows of the day were at midday. we almost had a double bottom when the dow was down 156 points and we trended higher after that but we're still down about 90 points going to the close. of greater note the nasdaq closing above 5,000 as we all know for first time since march of 2000. you know wall street loves looking at history for guidance of some kind. the nasdaq back then when it closed above 5,000 spent a couple days there and then it fell back and never looked back. so we're wondering what's going to happen. right now down 28 points on the close at 4979. we'll see. oil very interesting. the saudis raising their price for u.s. and asian customers today, and that pushed prices higher. brent was up a lot more above $60 and here is wti crude up 1.4% at $50.29. ed and we have terry dolan here. first of all nasdaq 5,000. i'm going to bet that it means
nothing to terry dolan. >> it doesn't mean a lot to me. i think it's a great benchmark for us to surpass and ultimately will. i think right now we're kind of a little toppy here. i don't think it's going to happen right off the bat. i think it's to be expected in the first quarter. >> and oil, the role it plays for equities right now. if the saudis were raising prices i would have thought it would be up a lot more. >> everybody is asking the question where is the $100 billion that consumers have saved? we saw a little bit of personal savings go up but certainly the retail sales -- >> didn't go to the retailers. >> i think the services industry is interesting. are more people dining traveling around the world? we'll see the numbers later in march. i would like to see if the numbers are bigger than expected. the low oil prices are really starting to impact the economy in a positive way. >> what would you buy? >> i like airline stocks. i really think they're really really cheap because i think the saudis can do whatever they want today. supply is in control of the oil
market. i think the equation that airlines operate under going forward for years to come is very, very favorable. >> and you've got an ecb meeting on thursday. we're going to get a better sense of what their quantitative easing program is going to be like you have the jobs numbers on friday. a lot coming this week. >> a lot of positives. i think the jobs number will be better than expected. i think that's going to play beautifully into the fed because the fed has given themselves so much margin. the ability to say listen as the guide post to raising rates, we're going to look towards full employment and then look to see how is that a benchmark against our inflation. so they've given us so much latitude and the market's perception is nobody is in a big hurry. the gas pedal is still on. the problem with the market is it's kind of tough to find value and tough to find where to put your money. >> would you buy energy stocks? >> i wouldn't buy energy stocks. i think for a trade it may be okay. i think you can get some bounces. if you are selective, you can
find stocks that aren't that hit by the price of oil coming down. as a long-term trend, i think oil is dead in the water. >> thank you. appreciate it. down 87 points back below 5,000 on the nasdaq. stay tuned. a lot coming up tony robbins will be here on the second hour of "the closing bell" with kelly evans. see you tomorrow, kel. thank you, bill. welcome to "the closing bell." i'm kelly evans. here is how we're finishing up the day after a historic close on wall street giving back some of the gains. the dow jones industrial average, the s&p across the board retreating from the closing highs we saw yesterday by 85 points with regard to the dow, about 10 points on the nasdaq, 2,107 is the level. half percent declines across the board. the nasdaq off 28 closing at 4,979 and a lot of other headlines in different parts of the market today. we have oil to talk about. we've got corporate debt.
we're going to get to that with today's panel. joining me is evan newmark, kate kelly. evan, we haven't seen you in a couple days. what do you think about nasdaq 5,000? >> it was a brief but beautiful dalliance, kelly. like many things in my life. look, what am i supposed to think about it? 15 years ago. i don't believe it symbolizes a lot other than it gives us something to talk about. >> but is it the kind of thing you look at and it sends a shiver up your spine and you feel like people are overexcited or do you think it's just another -- >> just another -- >> mark on the road. >> like i said i don't think stocks are particularly cheap right here. i don't think they're stupidly expensive like they were at the height of nasdaq 5,000, but, you know, would i be buying biotech stocks here? probably not. but does that mean we're going to have some great downdraft and have something else to talk
about, nasdaq 4,000? we don't worry about it. >> i will agree with evan. i don't think it sends shivers up my spine. i think it was another brick in the wall we all call the fed's doing, but the reality of it is exactly what evan said. i don't have expect that this is going to be like it was in 2000. i think we have a different makeup of companies. i think that better quality of companies have come to market with some -- a few exceptions but certainly overall much better than it was before and i don't anticipate if we hit a new high you will see the major downdraft we saw previously. >> what do you think people are saying kate? are there excesses in the space? is it the corporate debt stuff druckenmiller and others have been talking about? >> i think corporate debt is definitely a factor here now. i have been focusing on the energy space which is sort of its own animal, but i think that's just a rate story yet again, isn't it? we're waiting yet again for the paradigm to shift. a lot of consternation still as to when that's going to happen
and what janet yellen might be trying to telegraph there. not a lot of interesting opportunities that haven't been crowded within the debt market in recent years if you think about europe for example. that was popular for a hot minute but then there were too many people in it and it was too expensive. you have to look at the risky end of the spectrum to get yield and in this market you're not sure if there's a comfort level. >> i'm glad you brought up the rates thing. dangling red meat here. >> that's the only reason i actually come on the show kelly. >> why is now the time? >> i think rates have largely -- yield has retreated quite a bit since the beginning of the year and now we're back where we were at the beginning of the year. i think the 10-year now is closing, yielding at 2.12%. and if all of a sudden, you know, if you see the 10-year at 2.25% or higher you're back to the discussion about normalization, how long that's going to take and the days of sub-2% 10-year -- >> you're nowhere near
normalization. this is the new normal for quite some time. when you think about the corporate debt issuance, if you're a corporation, it is somewhat irresponsible to not take on additional debt as long as you have the capacity to do so with the rates like this. so it certainly can't be a surprise that today is another historic day in terms of corporate debt issuance because when the rates are this low, that's the time you want to be tapping the markets. >> let me bring brian kelly in the discussion manufacture yournp your note this morning goes to the heart of the issue. take a listen to this. >> what we've learned at zero rates is the debt which frankly is the reason a lot of the people don't want to raise rates, because the debt is too high the debt is accelerating exactly because we have zero rates. corporate debt was $3.5 trillion in 2007, arguably a period many
would describe as bubbly. it's $7 trillion now. >> we're looking around for bubbles looking at the nasdaq 5,000. are we looking at the wrong space. is this the real worry spot. >> i think it's the worry spot. what people will say is look at corporate profits, they seem to be going along with the corporate bond bubble if you will, so it's hard to say this is a bubble this is a valuation bubble but the amount of debt is what's amazing, and there's a huge, huge flaw in that logic in that corporate profits are much more volatile than your actual bond. in other words, you always have to pay that coupon. you ma i not always have the corporate profits to go with it. on the second side of that and i think maybe perhaps mr. druckenmiller is short the high yield market but if you look at what broker dealers have done with their balance sheets because of dodd/frank because of the reforms we put in, broker dealer balance sheets have been cut in half so there's zero liquidity. when it does happen i don't know when it does happen but when it unwinds, that's a big
problem. >> on the macro front, stan druk n druken miller has been concerned about the fed policy for a long time. think about elliott management and paul singer they have been railing against the current rates regime for years and folks like them, by the way, think there's peril to come in the equity market. they think we could see a massive correction not just the nasdaq, but the broad stroktock markets are at silly valuations and we will see a correction. >> what are they missing evan? >> i don't think they're missing -- >>the question is what happens to equity valuations if rates rise suddenly? >> recent history suggests interest rates are procyclical. there might have been some bumps -- >> we're in a period that is largely -- we're in territory that's largely uncharted right now. you have a combination of a lot of things one of which is you have a weird world in which
there are negative rates in large portions of the bond market. when you have negative rates in europe you can't even begin to predict the way the bond market will behave in the u.s. depending on, you know when rates go higher. i mean i don't have the answer. i do know that i'd be terrified right now to buy any debt certainly a 10-year that's yielding in the low 2% -- >> we have to watch, carol, for thursday, because that's when the european central bank, where we have seen this massive compression over there, maybe that trade starts to reverse. maybe those interest rates start to go up as they start their own quantitative easing. >> it is possible kelly, but going back to the corporate debt issue, i'm not so concerned about the overall level of debt. i'm more concerned about net debt, the debt minus cash and certainly a lot of these companies have a ton of cash on their balance sheets as well. i think the bigger picture issue for the market is what are these companies doing with the debt that they're raising? are they making good investments
with that debt or are they buying back stock that's very overpriced? are they just returning it back to shareholders or are they doing something strategic? that's the biggest issue that will follow us down the road when we don't have enough of that debt going towards investments that boost toward the future. >> b.k. what's your take? >> carol just hit on the exact point i wanted to bring up is that, you know, you talked about raising interest rates being procyclical. look at the environment we're in. if you raise interest rates when off new technology whether it be the internet or an industrial revolution, something like, that you're raising interest rates when the economy is chugging along. in this particular case, the only reason why the stock market is up at these levels is because of financial engineering, exactly what carol talked about. >> only reason? >> that's the only reason. absolutely the only reason. >> not earnings not corporate profits? >> earnings would rebound. they're okay. they're fine. but not to these levels not this much of a bounce off the bottom. it's financial engineering. >> yeah. kate? >> well i mean i think the point brian is making makes
sense and he's talking about the corporate debt issuance and i'm thinking also just free associating all the activism we've been covering and what is that in many cases but kind of dressed up financial engineering frankly. we want a share repurchase program, we want a dividend we want less debt or put the debt to work let's buy additional assets or split them in half if they're not -- >> or all of the above. >> maybe a combo platter and i want a couple seats on the board. you know but that has been -- i can't speak to whether that's responsible for all the growth in valuations but i do think that's been a big factor. >> last question, evan if the right thing for corporate america and america itself by the way to be doing right now is long-term investing programs, 20, 30 years out, can you blame -- are board rooms fundamentally holding us back from the kinds of investment we need? >> no. i don't think shareholders or the boards are doing anything other than what the incentives -- when they are
telling microsoft or apple you can borrow money at ridiculously low rates, frankly, you'd be negligent to not borrow the money and buy back the stock. you can borrow money -- corporates can borrow money at almost negative yields in europe. why wouldn't you do it? i don't think the problem lies there. the problem is going to be, you know, a year from now if the economy continues to grow and if rates go significantly higher what happens. i don't know the answer. maybe you know kelly. >> that's why i like to leave it right there and let everybody think about it. thank you, brian kelly for joining us. appreciate your thoughts on this topic. more coming up with brian and "fast money" at 5:00. they're going to hear what the ceo of the nasdaq bob greifeld has to say about hitting that 5k milestone. don't miss a moment of that. we've got some breaking news to get to on rbs with kate rogeers. >> that's right. "the financial times" is reporting the royal bank of scotland is aiming to slash as many as 14,000 jobs. now, rbs refuses to say how many jobs will be cut out of the 18,000 people that work for its investment bank.
this is part of a restructuring plan dubbed project brown that they had announced last week. "the ft" is sourcing people familiar with the matter saying four out of five jobs in the unit could be slashed by 2019. back over to you. >> wow. thank you very much. following that story as we discussed last hour with the ceo of mizuho usa buying up a lot of assets there. the national dak retreating from 5,000 today. my next guest says don't worry, this isn't your father's nasdaq. what does he mean? we'll find out straight ahead. later, tony robbins laying out his seven steps to financial freedom in his first book in nearly 20 years. he'll join me here at the new york stock exchange coming up in the show. stay tuned. se asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident
retirement approach. to get the real answers you need. start building your confident retirement today. ♪ help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operations. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.
welcome back. the nasdaq closing over that 5,000 mark yesterday for first time since march 2000 before falling below that level in today's trade. joining us for his thoughts on where we go from here jeffrey so the sot from raymond james. are you still long-term bullish? >> i think we're in a secular bull run with another eight or nine years to run. >> why is that? >> because your typical secular bull run markets last 13 or 14
years. we're 6 years into this one. it suggests you have another 8 to 9 years. >> what about fundamental reasons? are you saying all that matters is grab the calendar, mark down the date and ignore everything else? >> no, i think earnings have come close to tripling since the crater in 2008. as i said to you before the markets don't care about the absolutes of good or bad. all they care about are things getting better or getting worse and things are getting better. >> we just had a discussion about corporate debt. many others have been on this program saying this is companies buying back their shares it's boosting value. it's not a fundamental reflection of improvement in the economy. what would you say to that? >> i would say that in the latest quarter i think earnings the last peg i had on them had beaten estimates by 61% or 62% and that revenues had beaten about 58% of the estimates. so i think things are getting better. i think the economy strengthens in the back half of the year. >> are they getting better or is it financial engineering that
they're beating earning estimates? it's an interesting question. to what degree people are sort of working with their balance sheets to make things look more attractive or take advantage of cheap financing as opposed to really engaging in organic growth. i think that's a key question raised by druckenmiller. >> it's carol roth. i want to ask if there's a particular area that you might be concerned about in terms of the nasdaq overall? when i look at it it's definitely very different than back in 2000 but the one area that potentially could be a concern is biotech. if you look even just at the number of ipos as a percentage of overall ipos of biotech companies, back in the frothy '99 and 2000 years versus last year we're seeing much more of biotech coming to market and they've had a big run. >> the space has been really hot. i was up talking to my friends at fidelity the health care
segment, i think they do really good work on biotech. they seem to think we still have clear skies. down here at orlando at raymond james annual 36 institutional conference, there was no real celebration on biotech and there was no real celebration when the nasdaq recaptured 5,000. >> jeff it's evan newmark. i know you covered primarily the u.s. market but one of the points i wanted to touch on i'm curious to get your take was the composition of nasdaq today. the key feature of nasdaq and we can look back on this 15 years after the fact there were a lot of young dynamic companies, the companies today that are world leaders whether it's a facebook or a google and those companies do not exist in other parts of the world like they do in the u.s. right now. does that give you further optimism or does it mean that maybe the u.s. has less far to
run given the past 15 years? >> no i don't think so. i think there's four forces forward that are pulling the country forward, and one of them is creativity. if you don't have creativity you have issues and this country has oodles of creativity, and it shows in facebook, it shows in twitter it shows in pfizer. it shows in tesla. when i came out of the train station in paris, we got into a tesla taxicab. i was floored. >> tesla taxicab. >> literally. >> thank you so much for being here. jeff saut from raymond james running through this reason for this run to keep going. it was a speech the white house never wanted to hear. >> gratethe greatest danger facing our world is the marriage of militant islam with nuclear weapons. to defeat isis and let iran get nuclear weapons would be to win the battle but lose the war.
we can't let that happen. >> israeli prime minister benjamin netanyahu bringing the house down. more on what he said and president obama's rebuttal just ahead. but first, best selling author tony robbins tells us the investing secrets he learned from the world's top moneymakers, including warren buffett, carl icahn, charles schwab. robbins is here and we're back in two.
tony robbins is taking aim at your wallet and pocketbook. yes, it's called money, master the game seven simple steps to financial freedom and joining me now here at post nine a number one "new york times" best selling authors, tony robbins. welcome. >> thanks for having me on. >> first book in 20 years and you say it was tough to write but important. >> i don't like to write. every four days i'm in front of an audience of 10,000 or 20,000 people. when 2008 happened and i saw people losing their house en masse and i grew up dirt poor and losing half of their net worth, i wanted to do something. i thought if i could take what i have learned from paul and i could interview 50 of the smartest people in the world financially and boil it down to something the average investor could use, it's valuable. >> what's the biggest mistake most people are making about money or investing?
>> i think the biggest piece is they don't manage risk. if you look at all these top investors, they're radically different. with carl icahn who couldn't be more different than jack bogle. i got to introduce the two of them. they're obsessed with not losing money, as simplistic as it sounds. warren buffett don't lose money rule number two, see rule number one. the way they do it is asset allocation. the second thing is really these people not only avoid risk but they go for asymmetrical risk rewordre reward reward. how do you get the least amount of risk with the greatest upside. he never risked more than 6 cents to make a dollar. he could be wrong 15 times and make money and he wasn't wrong 15 times. >> what i -- there's something i love about the book and something that troubles me. >> tell me. >> what i love about it is the message to people to get involved. to be smart about your money. so learn from the best as you put it over and over again. study, study, study.
>> yes. >> what troubles me is the actual advice seems to come down to what templeton as you have invoked said buy when others are selling. for most people market timing will never work. >> that's actually not what's in the book. it's not even close. templeton is only one of the people. i interviewed them all. what i try to find is what do they have in common. templeton is blood in the streets. one of the greatest things about this book is it offers ray value as an example. largest hedge fund in the world. after three hours of interviews i said if you couldn't give your money to your children all you could give was a strategy, a portfolio, what would it be? tony, i spent ten years perfecting it and he told me about his all weather strategy -- >> but a lot of people -- because the thing as well on the one hand you have these sophisticated options out there with guys who have a great track
record. most of the time all that matters is the lowest possible fee, get involved for the greatest am ofgreat est amount of time and be simple, simple -- why not write a book that reiterates those themes? >> i did. if you're a millennial the most important thing is to get in the game and the most important thing to know is protect yourself. theodore johnson at u.p.s. he never made more than $14,000 in a year and he retired with $70 million with no inheritance. he worked for u.p.s. his friend said i have no money to invest. his friend said if there was a tax of 20% on all you earn, you would hate it and you would pay it. but you have to know two things you and i both know. nobody beats the markets except a few unicorns. 96% of all mutual funds fail to match the market. the 4% that do what's your chance? >> do you play black jack?
>> you need to try to not pick the winners or pick your moments. back in 2010 i'm sure people have talked to you, you say to people, look, i talked to these guys, they're worried about the market. i think a big reversal is coming. >> they think, yeah. >> right. even the last four years obviously returns have been great, the economy has been good enough. but the message i think again, i want to make sure your emphasis i'm understanding where you're coming from. this isn't about timing the market and trying to call the cycle which nobody frankly can do. it's just about -- >> absolutely. >> basically getting involved. >> it's asset allocation and making sure you don't pay the fees. if i can get the index for 0.17% and i'm going to go pay a mutual fund for 3.1% for some of the same stock. it's the same product. i'm crystal clear about that. all i shared with people at the time is the people i was investing with is -- no one quotes the fact on march 7th in
2009 the same group of people said we think it's the bottom. >> you tweeted that as well. >> and i said i'm not telling what you to do and i certainly didn't say stay out of the market for the next four years. just be aware of what's coming and it might be time to take something off the table. none of my ideas. this entire book is 50 of the smartest people in the world. if you can't to argue, argue with carl icahn. >> the last question before you go yesterday the nasdaq closed above 5,000 for the first time in 15 years. what does it mean to you? >> the number is random. it's not higher than it was because of inflation, but you have 20 times multiples right now, 194 in 2000. but here is what i have learned. i was just with fed chairman alan greenspan, and i asked him what would you do, how do you look at the environment? he said we've never been here. i said what would you do? he said resign. no one is going to call this accurately. but that's why what all these investors do they have an asset allocation that's diversified in a way that protects themselves and i think that's critical to
everybody. what that right asset allocation is part of what this book is about. >> thank you for being here. tony robbins. the good is "money master:the game." we have a news alert on a top executive leaving this place, the new york stock exchange. mary thompson has the details. >> we have the news that scott cud ler who is head of global listings at the new york stock exchange is going to be leaving. he has been head of global listings here since 2008 so part of the old guard as the nyse has gone through some mergers and acquisitions. keep in mind he is a point person for all the companies that go public on the new york stock exchange including alibaba which was one of the companies that generated over $70 billion in ipos last year. now, he will be replaced by garvis toller iii. he will be assisted in the listing space by john merrill who is a long-time employee there who will be responsible for listed company relationships
at the new york stock exchange. you may want to stay tuned because coming up at 5:00 in "fast money," we'll have been interview with bob greifeld who is head of the nasdaq and we'll see whether or not he thinks cutler's exit from then yse will have any impact on the listing wars you tend to see between the two exchanges. >> we're looking forward to that. scott is familiar face around here. back to the future for america's job market. a former top ceo says we need to ramp up american manufacturing if we want to jump start this economy and he will join us ahead. first sue herera with a news update. the congressional budget office says the federal debt limit does not need to be raised until the fall. slightly later than previous forecast. if not, the u.s. would run out of cash, but the treasury will be relying on seasonal tax payments to bridge the gap until then. a new self-driving race car was unveiled at geneva's international motor show. the could be september car by ed design is called the torque and it was designed to be completely
autonomous. the car boasts an all-electric drive train and has no windows. the fda warning doctors against the overuse of testosterone boosting drugs for men saying the popular treatments have never been established as safe or effective for treating common signs of aging but sales have gone over the $2 billion mark. and oprah is leaving chicago. by year's end her harpo studios will shut down with the company's productions leaving for her network headquarters in los angeles. and that is the cnbc news update for this hour. "closing bell" with kelly returns after a quick break. you know what else i can do on my phone? place trades get free real time quotes and teleport myself to aruba. i wish.
you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance.
works. works. welcome welcome. benjamin netanyahu giving a stirring speech to congress. it went as expected which made republicans happy. john harwood joins us with the full details. hi, john. >> prime minister netanyahu did exactly what the obama administration feared, which was deliver a forceful powerful speech against the prospective iran deal. he did it by telling the american people that the threat from iran is much bigger than the threat from isis. >> the greatest danger facing
our world is the marriage of militant islam with nuclear weapons. to defeat isis and let iran get nuclear weapons would be to win the battle but lose the war. we can't let that happen. >> now, as negotiations continue in switzerland, president obama dismissed prime minister netanyahu's remarks as nothing new, said he'd been wrong before, and vowed only to agree to a deal that was in the u.s. national security interest. >> if it's a deal i have signed off on i will be able to prove that it is the best way for us to prevent iran from getting a nuclear weapon and for us to pass up on that potential opportunity would be a grave mistake. >> the question now, of course is whether or not prime minister netanyahu's remarks deter the prospects for getting a deal in switzerland. president obama has already said
those prospects are less than 50/50. >> thank you. bring in the panel in a moment but before we do another big story out of washington involves hillary clinton and her e-mails while secretary of state. can you bring us up to speed on that? >> well we've had a report in "the new york times" that said that hillary clinton may have violated government regulations by failing to use an official state department e-mail address or by archiving in a secure way the e-mails that she'd sent from a private account. she did not, according to the report have any state.gov e-mail address which is what john kerry does now, although previous secretaries of state had not done that. it remains a little bit murky as to exactly how great a departure from either precedent or regulation hillary clinton had engaged in but it's not a helpful story for her because, of course hillary clinton has been criticized over the years along with her husband for the
way that they've approached issues of transparency and i think this is something they're going to have to have a more forceful answer than they have so far. >> john, stay with us. i want to bring in the panel here. kate? >> you know i think this is kind of thought provoking and it's certainly not unprecedented. i'm sure john has other examples but i think back to gary gensler, and he got into trouble for using a personal e-mail account when he was working at home to resolve the mf global crisis. he actually was subject to a congressional inquiry and gave some testimony i was just looking at and he says interestingly, i would like to note it is better to avoid using personal e-mail even though there is no law prohibiting it. so i think this probably happens all the time in washington. the question is are you forthright with your e-mails if they are subject to some scrutiny. it sounds like maybe clinton's staff a little bit less so in this case. >> look there's nothing, nothing that hillary clinton does not do that is 100% intentional. so there is zero possibility that they did not know exactly
what they were doing on this. but i have a question for you, john harwood. you know, we on wall street we like to measure deals by whether or not a deal achieves your objectives. my question would be if president obama's objective is to prevent iran from getting a deal, will democrats on the hill believe that this is a good deal that achieves that objective? >> i think they'll be split. we've already seen their split on that issue. bob menendez the senior democrat on the foreign relations committee, has been actively pursuing sanctions legislation that has some democratic support as well as republican support even though the administration said that the president would veto that legislation and it would harm the prospects for help. a majority would go along with their president on a deal of this kind. most republicans will be against but there will be democratic opponents, too, and that what
makes prime minister netanyahu's attempt to rally support problematic. >> it does seem at this point there needs to be some uniform standards with regard to e-mail do there not? otherwise it's up to every candidate or politician or office holder womanever, to decide what and how much to release and that doesn't seem like the best approach. >> well i think it's a moving target kelly, because the regulations on this have changed over time. the state department indicated today that john kerry was the first secretary of state to use completely an official state department e-mail address. so this is something that's been evolving and hillary clinton was serving during that evolution, but it is not 100% clear to me whether or not this was a clear violation or excessive caution on her part. we're going to have to see more come out. >> i'm sure we will. thanks john. john harwood in washington for us today. we have breaking news on mcdonald's. kate rogers rejoins us. >> this is according to a filing
with the s.e.c. mcdonald's new ceo steve easterbook's salary has increased by 70%. he will be paid $1.1 million. and their old ceo will be paid $3 million for consulting services by mcdonald's. during his tenure the stock had been severely underperforming. only up 13% from july 2012 to when he left in february and after hours mcdonald's stock not doing much. up a quarter of a percent. >> thanks very much. looking at kate kelly. >> i'm a little confounded. the new ceo is making a third of what the outgoing ceo was making for consulting purpose in his full-time job running the company. >> but there's a big difference though. they gave easterbrook special options. he can take the $1.1 million as happy meals. >> i assume that figure is all in. it accounts for stock and options -- >> you know what he has to do? he probably has to record his e-mails because in corporate america there are some standards that for whatever reason we don't hold the government to.
>> that's a point. thanks guys. the worker participation rate at the lowest level since world war ii. my next guest is laying out his solution. and later dom chu introduces us to a new text message concierge service that can deliver you pretty much anything as long as you're willing to pay a price. it's a debut of a new segment called "chu on this" and it will literally be magical. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration.
my next guest says if the economy and especially the middle class are really going to recover from the recession, it's time to jump start u.s. manufacturing. joining us now is dan dimico author of "american made" and former ceo of nucor corporation. we have heard this message umpteen years. the dollar value in this doesn't is at all-time highs, it's just that the employment level itself is still very low. are you saying both of those need to continue to move higher? >> hi kelly. how are you doing? >> welcome. >> glad to be a part of your show again. and, listen statistics can say a lot of things. when you use a statistic like that the higher dollar volume the value, what's the gdp number
today, okay? you have to keep in context. manufacturing, unfortunately, is only about 11% of gdp. it should be north of 20% if things were, you know, going along according to the way they should. and what we have in this country today is a very anemic growth in both gdp and job creation since 2007 and 2009 when the recovery started. you know as well as i do that we're averaging somewhere around 2.2% gdp over the last seven years. and job creation while people get excited about it you may not know this but today roughly 85 months out from the start of the great recession, we are 12 million jobs behind in job creation, the same 85 months out versus the 1990 and 1980 recessions. >> okay. >> we are way behind. >> and, carol, i'm looking to
the panel here just wondering what is going to be the impetus? what do you think? is it just the economy gets better and better and we start adding jobs? >> i actually think one of the potential catalysts comes out of china itself. i have a lot of clients who manufacture in china, and what we're seeing is that prices keep going up over there, and there seems to be continual quality issues because now you're getting higher prices and lower quality, and i think as that gap closes, that that may be a catalyst. dan, would you agree with that as a potential catalyst for american manufacturing renaissance? >> it certainly is a potential catalyst along with the issues that our companies are facing over there with ip protection and the state-owned enterprises and the state companies making life difficult where the government of china is helping them preferably to domestic -- excuse me to foreign companies. boeing has run into that program. heavy equipment manufacturers
are running into that program. but the problem is much bigger than just what's going on today. that's why i mentioned those points before. this issue really revolves around a trade policy that's been a complete failure since 1970s. the last congress and president to get trade right in this country and in the world was tip o'neill and ronald reagan and we haven't had it right since. >> we've got to go dan, but do you support the trade deal being negotiated now, the transpacific partnership? >> based upon the utter failure of the previous trade deals, no. i do support a trade deal but it's got to be done the right way and right now it doesn't look that way. sorry i couldn't talk to you more about the book but you should read it. >> we will. there's the book "american made: why making things will return us to greatness." really appreciate it. seems like everybody is trying to get into the same day delivery business. a new company called magic is
hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this.
we heard about a new business out of san francisco that was anything to you as long as it's legal and as long as you have enough money for it so of course we put dominic chuy to the test right here in new york. >> we are so much more of an on-demand society these days. everybody wants instant gratification. that's given rise to a whole slew of companies whose sole purpose in life is giving you what you want when you want it. the latest one of these companies is called magic. magic is not an app. you don't have to download anything, all you have is this phone number. text what you want or what you want done to that phone number and they respond back to whether they can do it and at what price. i was having a huge hankering
for food. there's a place in new york city called the guys. considered by many to be the one of the best food trucks in all of new york city. but we needed to get my chicken and rice from new york city up to cnbc world headquarters in new jersey. they responded back. and they said it's going to cost about $90. but the problem was, i was number 24,881 or something in line. so chew on this the delivery charge is $90. the vip package to help me skip the thousands of people in front of me is another $50, bringing my grand total to $140 for this one delivery. $140, and yes, we got our food. but we paid 140 bucks for what normally costs $7 at the guys. how much money do you actually have to make to make this kind of a deal worthwhile?
what's to keep anybody else from doing the same kind of business model, and then just competing with you on price? but let's be honest. all of this company really needs is enough of a client list and enough sales momentum to have some other company come in and buy them out for a price tag with a ton of zeros behind them. chu on that. that's really good. >> and dom joins us from cnbc headquarters, wow. all right. dom, this by the way, this is how we'll follow whether we're in a new bubble or not. secondly, where did all the money you paid go? >> we decided to break it down there have been some comments about what exactly goes into it. here's thousand breaks down kelly. that $140 we had. first of all, the $50 vip charge. that's what expedited us through the line we were 24,000 something in line. this allowed us to jump through the people in front of us. then the delivery charge is 90 bucks. the food is seven bucks, then the delivery and toll aspect it
was handled by a company called task rabbit. again this magic service outsourced the work to task rabbit and then the tolls to the tip and everything else, and then plus the service fee, $8 that's actually what this magic texting cons yarge service makes on this transaction. all tolled the $140 breaks down that way. middle agic only made $8 from the transaction. this ended up being the most expensive, at least meal haloll street food cart food in any life. it worked. and it's scaleable. not every transaction, kelly costs this much. depends on the complexity, how long, how much time it all depends on just how difficult a task you have. >> oh it's scaleable. it's scaleable. >> kelly, so scaleable, at least a billion dollar evaluation on it. >> i have a question for dom, did you ever think of asking task grab it yourself. why not go to them?
why do you need that middle man? >> here's the thing. you hit the nail on the head here. it's all about the middle man aspect. i could go to task rabbit or find something else. if i'm someplace and i just don't know what service can actually do it for me. the $8 fee that these guys charge was actually it's their fee. they find let's say i wasn't in new york city, i was in chicago or somewhere elsewhere i wouldn't know if somebody else could do it that's why they do it. they link all those businesses to you. >> enough competition gets in the space, some day, maybe we'll all be testing for outrageous requests. >> the ipo of magic at nasdaq 10,000. >> i don't know where i'd put it. >> where's our food dom? >> chu on this. i love it. thank you dominic chu. $65 million, that's the take home pay, that's per month. one month. more than $2 million a day. the mystery man revealed with our robert frank next. out there. the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal.
and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm.
we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. there's hedge fund manager banking more than $65 million a month, which works out to more than $2 million a day, and that's after taxes, robert frank joins us now with the big reveal. robert, drum roll please what can you
tell us? >> ken griffin, the founder of
cidel. he's battling his wife over the terms of their divorce. in a recent filing she said ken's income is more than $100 million a month or $68.5 million after taxes. that's $2 million a day or around $91,000 per hour. spokeswoman for griffin declined comment, this is all part of a dispute over child support. ann is asking for a million dollars a month in child support. ken says that's excessive and includes things like private jets $450,000 vacations and $6800 a month for groceries that are mainly for what he calls, ann's op ewe lant lifestyle. it's what they spent during their marriage and illinois law requires child support to match the family's spending during their marriage and her filing diaz admits quote, it's a silly exercise to pretend that day-to-day living
expenses even remotely is the norm. typical american families do not have a father with a net monthly
income of just shy of $70 million. that would be maybe the understatement of the year guys. >> thanks. thoughts on this? >> well i'm speechless. i'm speechless. one man's opulence is another man's day-to-day living. >> is it worth it? pay justified? >> his year today performance and three main funds including two multistat funds is about 5% up. >> nasdaq. >> it's not gang busters, right? i don't know. a million a month on 68.5. >> money may not be buy happiness, but it is more comfortable to cry in a mercedes or on a private jet than on a bicycle. >> you know kelly -- >> words of wisdom from the master. >> how dare he deny his children anything. if my kids are watching this i deny you nothing. >> we're going to leave it right there. thanks everybody. that does it for us here on "closing bell" today. $65 million a month.
>> $65 million a month, that's quite a big -- yeah that's not bad. not bad. you know gave up 5,000, but we've got an exclusive with the coo of the nasdaq landlord on the outlook for the ipo pipeline. >> that's huge, straight to you. "fast money" starts right now. live from the markets overlooking new york city's time square, i'm melissa lee. tim, steve, brian, and guy, mark is pulling back today with the nasdaq giving up that 5,000 milestone. we are sitting down for the first on cnbc interview with bob on the significance of 5 k and the outlook. alibaba hitting it's lowest level since going public. whether baba is broken. first to the real mover, and that was oil. crude bouncing back above the $50,000 level. why did this capture this so much? on the conference call today,