tv Closing Bell CNBC April 20, 2015 3:00pm-5:01pm EDT
e the home. >> what a remarkable story. thank you very much. diana olick. once again, we are watching the markets to rally today. technology is a strandout. check out the nasdaq 100 heat map. this of course ahead of a big week for tech earnings. tonight, ibm after the bell and an exclusive with the ceo of lionsgate. "closing bell" starts right now. welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'll show the wires. i couldn't hear a word what kelly said. she was going to say she's at the new york stock exchange. i'm bill griffith. i'm at global headquarters because you'll see me later on pbs. the stock market is down sharply on friday. the finishing down 279 points on the dow and friday because of concerns about greece and defaulting on debt and so forth.
it is up 200 plus points because being cheered on by the reserve requirements in china. this is an internationally lyly oriented market right now. is that the idea? >> i apologize if i'm repeating anything. bill pointed out the dow is up 217. let's skip straight ahead to the "closing bell" exchange and introduce our guests. joining us at the top of the hour to kick things off. we have price heedley, kate warren from edward jones. and our very own rick santelli. a welcome one and all. anthony chan the big news this weekend, we have to talk about a china rate cut. the u.s. central bank the japanese, what's the message to investors. >> central banks all over the world are coddling financial markets, coddling the overall economy. that's one of the reasons we
don't get big corrections anymore. we get mini corrections. right after the chinese announcement on friday that they were going to go ahead and restrict margin trading. the analysts warned and said the financial markets would melt down on monday morning. you get a much larger than expected easing in reserve requirements. in the united states we had a weak first quarter. bill dudley repeating the remarks, saying yes, there were a lot of things going on. if the financial markets don't handle fed tightening very much they'll go a lot easier. of course he gave the usual suspects but what what we knew the usual suspects weeks ago. why repeat that? again, coddling the financial markets. >> jeff kilburg, the volatility we're seeing right now, down sharply on fears about greece on friday up sharply with china on monday. should i be asking what traders are smoking?
did you see what i did there? >> it's a great point to illustrate. here in chicago, i want to allude to the way my grandfather used to drive his car, two feet one on the gas pedal, one on the brake. that's what it feels like here all due to china. they cut the reserve requirement by 100 base points. one of the biggest cuts since the crisis. that flooded the markets with 161 billion or trillion lewan, if you will. it represents 20 trillion of the 70 global trillion in stock markets. it moved it up over 1.25%. the math doesn't add up. the emotions are high here in chicago. that 161 mini qe doesn't translate into the boost let alone in the global stock market, let alone the s&p 500, bill. >> kate what about you? what do you think about the impact here? >> overall the market is more focused on earnings than it is on what's going on in china and what's going on in greece. those pictures really haven't changed very much. certainly china's reducing the reserve requirement is a
positive. i don't think we would have seen this rebound solely on that. i think the market right now is certainly has concerns in the background but it focused on earnings. we saw better than expected earnings today, worse than expected on friday. i think we'll continue this see-saw. >> do you agree, price headley, let's face it the volatility has been internationally oriented. earnings matter but the headlines are still dominating this market right now, don't you agree? >> it's a headline driven market bill. it's a bit manic depressive on a day-to-day basis. if you look at earnings, 76% of s&p 500 companies are beating estimates compared to the usual trend of 70%. you could say that's low expectations, they had nowhere to go but up. that's symbolic of what's going on with equities overall is still the place to be. a lot of people are scared.
that means you get very quick snapbacks. people are willing to buy the dips quickly. it helps to have central banks coddling. i see the dow going to 20,000 before the end of the year. >> whoa. >> i think it's a relative value, p/e ratio of 16. i think it has plenty of gas in the tank from here. >> wow. >> we'll come back to that in just a second. i wanted to mention oil. we have a couple headlines today watching movements out in the middle east. how much of a bid do you think geopolitical concern is put into oil here or is it rising on better demand? >> you know, i think it's a little bit of both. i do have to say, traders on the floor that were looking at oil as a range, uncertain whether the definitive bottom is in had been thinking they would want to sell rallies. when you read about yemen in the middle east and some of the issues of the day with the united states they're not turning into a buy/dip mentality that is still looking at the oil
market in somewhat of a range unsure, if it's going to test sub-50 levels again. with respect to foreign exchange, the new story emerging is that the chinese have their manage pegged in accordance with the dollar. as the dollar strengths by default, the relationship has been somewhat tainted. china is managing its slowing economy, better than quote, unquote, free markets. ultimately how they decide where the yuan should be is starting to take on a bigger life. >> when they made those changes, we see the market response here. the bigger issue i'm asking you about is as long as other central banks are easing and it has the impact of the stronger dollar here in the united
states, it lowers inflation expectations in this country. you know, we're all expecting the fed to raise rates at some point. as long as they're waiting for inflation to rise if inflation is not rising because of other countries easing will this buy implication mean the fed can't raise rates at the same time? >> the fed can make that distinction anytime it wants which makes trying to trade on the fundamentals so much more complicated. if we reverse that question and say have we seen a boat load of disinflation or hasn't it been rather steady starting to firm up on a year-over-year basis, the answer would be yes. they can have it any way they want. it makes it more complicated to translate into a trading strategy. >> anthony, you were shaking your head here. >> energy prices for example, are up more than 20% from the bottom. i see price pressures creeping up up there.
this is not germany. we don't have an export/import mostly economy. we know that in germany 50% of that economy is exports. here on a relative basis we're relatively close. i agree with rick. the federal reserve canvases both of them. i don't think if china has deflation, which they don't, inflation is up 1.4% year-over-year. >> you brought up inflation here. some of the forward inflation expectations are back above 2% in this country. is there a turn in inflation that we're witnessing here? >> i have no doubt. if you look at the university of michigan expectations for prices, already that is starting to show some signs of life. we see the anecdotal evidence that wages are rising. i'm pretty sure in the next 6 to 12 months we won't be looking at a headline cpi of minus 6.1% which we have now. we'll move into positive territory.
we're going in a northern direction, not a southern direction. >> kate warren, i noted pong the ten s&p sectors that we follow the two today, technology leading, followed close behind by utilities of all sectors. i mean which way do you want to go here? you have a growth-oiented sector and a defensive oriented sector. >> i think i'd be looking more at technologies. inflation is likely to continue to pick up a little bit. i think that does give the fed, as rick said, it could do whatever it likes. it gives the fed reason to begin to raise rates. that doesn't mean utilities do badly. the growth-oriented sectors would do better. it's an unusual combination but it's probably due to concerns that while we're seeing china ease that slowing china actually means lower interest rates. so it's that disconnect as well. we're seeing in other parts of
the market. >> the last word to you, rick do you think the path of least resistance is lower or higher? has it changed at all lately? >> i think the path of least resistance is sideways. if there's any move in a quick fashion of more than a dozen basis points i think it would be yields moving lower. >> it's going lower over my shoulder, kelly. you can hear them screaming in the pits. >> is that what it is? >> yes. >> that's what i heard. >> price here on record now, dow 20,000 by the end of the year. we'll have you back. we'll be talking about this. thank you all for joining us today. 50 minutes to go into the close, mr. bill. the dow is up 229 points. the s&p adding 21. the nasdaq 66. it is a mirror image of friday's sell-off, much more aheard on today's rally. ibm posting results after the bell tonight. we'll bring you the tech bellwether's numbers the second they hit the tape. what ibm unveils could set the tone for wall street tomorrow
man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one. try zip recruiter for free today.
welcome back. rally day on the stock market. the dow is now up 229 points -- 260 i saw at the highs of the session. the s&p is up 21 and look at the nasdaq. we mentioned earlier the technology stocks are leading the way among the s&ps, up 1.9% almost a 2% gain there followed closely behind by the utilities, even the laggards, the consumer staples are up 0.5%. >> all ten sectors in the green. sharon epperson is tracking some of the biggest movers for us on this manic monday. >> hasbro shares have been soaring, thanks to toys based on transformers and marvel comics. michael kors taking a hit, it's
been downgraded from neutral to buy. and shares of callaway in the green, it has a buy rating saying market environment is likely to give callaway a powerful and sustainable comeback. under ar thundershowermour getting a boost, the upgraded outlook comes ahead of first quarter earnings before the opening bell tomorrow. back to you. keeping an eye on that one share. thank you. which stock is better in the long run, bill under armour or nike? >> bert flickinger likes nike instead. why, bert? under armour is on fire here. >> nike always wins whether it was jordan whether it was jeter, now with gene jackson running the business. he's a genius along with phil knight. nike is always victorious, took
out reebok umbro, adidas, converse, they run the table every time. >> look at some of the success they've already had. >> yes, sure. certainly the success they've had with their endorsements has been just enormous. the masters record-breaking masters performance by jordan spieth super bowl mvp and likely nba mvp in curry. the under armour brand is on fire. if you look at nike, they generate $37 billion at sales. under armour is roughly 4. if they can get 15 to 20 billion, there's well north of a billion dollars plus in annual free cash flow. if you apply nike's potential free cash flow the market cap
could more than double from here. >> wow. >> are we making a fair comparison here gentlemen, of nike versus under armour? is nike john necessarily the bogey that under armour is going after, do you think? >> the markets they're growing in are growing rapidly right now. the activewear market domestically and globally is growing rapidly. both companies are taking advantage of the pie. two incredible companies with be two marketing giants and ultimately we think under armour has a massive opportunity. ultimately we think under armour gets well north of $15 billion in sales. if you look from a valuation perspective at the three large cap competitors, pure play competitors in the apparel space, vf nike and hanes. multiply under armour at $15
billion, $20 billion in sales by that multiple, the market cap could much more than double. >> bert make the case for nike as an investor from here, to do something other than collect the cash flows that will continue to generate. do you see growth potential? at $85 billion in market cap, how much bigger than nike get? >> it's a value growth company. whatever under armour has undertaken, nike has prevailed. they can take technology and catch up to under armour quite quickly, the same way nike prevailed in american football then world cup football. every single sport nike has taken on nike's always been the clear winner under armour is a very good company but in the long run, everyone's always placed bets on nike to win and it's always won. that hasn't been the case with nike competitors. >> what about john's point, though, the pie is growing? is it necessarily a zero sum
game, if nike wins under armour loses? >> it's not a zero sum game. the share that under armour and nike will get will come from adidas, reebok, umbro, gappage gappage -- gap athletica. >> thank you for your thoughts today. >> thank you. >> appreciate it. i thought we had joe kernen coming on to talk to us. >> i had to keep hesitating before i said john's name. >> 40 minutes to go until the close. we're pretty much near the highs of the day. a strong snap back from friday's broad-based sell-off. a lot of discussion on what is driving this spectacular rebound. mobile-geddon, google changing the way it ranks search results and small businesses especially run the risk of getting left behind with this new algorithm.
the pros tell you what you need to know about this. that's coming up on "closing bell." stay tuned. before i had the shooting, burning, pins-and-needles of diabetic nerve pain, these feet grew up in a family of boys... married my high school sweetheart... and pursued a degree in education. but i couldn't bear my diabetic nerve pain any longer. so i talked to my doctor and she prescribed lyrica. nerve damage from diabetes causes diabetic nerve pain. lyrica is fda-approved to treat this pain. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new, or worsening depression or unusual changes in mood or behavior. or swelling, trouble breathing rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. now i have less diabetic nerve pain. and i love helping first graders
broad based. >> i happen to know by the way this is the best day for the nasdaq since january 22nd. >> that will do it. >> there you are. >> that bill, that we're looking at as discussed, the s&p 500, not a lot of red on that board. >> hasbro is the best performer. follow by csx and amazon. and i can't see what the worst performers are. we'll get those for you later here. >> we do know google a lot of tech companies having a strong session as well. google in the news for changing the way it lists searches if a website is mobile device friendly will be ranked higher than those who aren't. some are calling this mobilegeddon. >> interesting development here. let's talk about it. aaron shivers, chairman and ceo of patriarch equity. good to see you both. thank you for joining us today. >> good to see you, bill.
>> what do you make of this? now they want to move more toward mobile makes sense doesn't it? >> they're very smart. what happened in 2013 they recognized that mobile was going to be the future. they gave advertisers the ability for really nothing to if you advertised via the web that you would also be able to get mobile. what happened was, the negative implication is that that drove down click costs. people saw that advertisers saw that it wasn't converting as well. so what they recognize is to stay dominant they have an 87% position on mobile search is that they're better off making sure that businesses are changing the experience so that you get higher conversions. that's what's behind this overall mass website massacre if you will that's coming. >> welcome. it's great to see you. listen, i wonder how much this tells us not only about google's dominance in mobile search but the fact that quite frankly
people aren't using mobile search so much to transact. is there weakness that google is responding to within their business model? >> can you hear me? >> yes, go ahead. >> i think eric hits on the key point here which is people are searching from their smartphones. google executive said last year says he wouldn't be surprised if the queries on smartphones passed thepass ed queries on personal computers. when we click on links, we aren't getting the experience. the text may be too small. the links may be too close together. these websites aren't always designed for a small smartphone screen. you may not convert as well or buy something. and that's problematic. as a result people aren't spending as much money for the mobile clicks.
>> rolfe, you said a company like aeropostale may find its results are no longer as prominent as they were. why is that? >> exactly. the other interesting thing about this particular change is google -- it's unprecedented, google gave everybody a huge warning. they said this change is coming april 21st. they never do that. they never give you the heads up. they also gave people a test tool. you can see which sites are friendly or not. if you type in aeropostale, for example, it says it's not mobile friendly, it's not ready for this change. which is interesting. you'd think it's mostly mom and pops but some big sites aren't as well. >> as i read through all of this this the question that kept coming back to me my goodness look at the power that google has in all of this. do they have much power? if they had meaningful
competition, would advertising costs go down lower than right now, do you think? >> sure. it's ultimately about the fact that they're able to capture the eye balls and they're capturing the streams of people. but at the end of the day, google is really helping small businesses because smartphones are not going away. this is where consumers are going to be. to the extent they're motivating consumers to make or advertisers to make their websites more consumer friendly, that means businesses will make more money. this ultimately you'll look back and say this was a driver behind small businesses helping them to dominate more on the web. which is a great thing for the u.s. it's a great thing for small business. >> helping them to dominate more, eric? >> absolutely. absolutely. because to the extent that a consumer comes to a site and they the experience, they're more apt to use the experience then they're more apt to spend money with those small businesses. where right now they're clicking off or they're only spending a small amount of time because it's not assen fromly as an
amazon or another site that's been built directly for them. >> this will put the own usnus on a lot of small businesses who are trying to do other things at the same time, to update very quickly and use one of the clients that they're relying on. can they be so confident that that's going to happen that they're not just going to get swept away? >> yes, because the cost to switch over these sites is de-min muss.de min de-min -- de-min -- diminimous. they want to give potential customers a great experience. >> we've been wringing our hands over the small businesses how it will affect the small businesses. we were faulting the ipo for not
having a good mobile strategy. now they do. we have to look to the future and the future is mobile. these small businesses, in order to survive, will have to go there, aren't they? >> absolutely. you can say this is a change that google is making that will benefit consumers. they do this once in a while where they try to encourage certain kinds of behavior among website developers. they can do that. google has amazing amounts of power on the web. if you're not seen on google you're not really seen. they've encouraged websites to use encryption, for instance. they want to make sure that users have a good mobile experience on their devices. they also have to do this by the way, for their own business. people on smartphones, we're spending most of our times in apps. apps are walled gardens not connected by links. keep in mind that for all of google's innovative basically their reputation for innovation the one thing -- the only thing
they've really done that macks them money is follow links around the web. >> and that's something we'll have to make sure they keep doing. thank you. eric schiffer. thank you. two defense officials telling nbc news that the aircraft carrier uss theodore roosevelt sailed through the straits of hormuz on sunday heading towards yemen. the carrier along with eight other u.s. navy ships is tracking a convoy of iranian ships that u.s. officials suspect could be carrying weapons to yemen. president obama held talks with the crown prince of the united arab emirates at the white house earlier today. the president looking for support from arab states. new jersey governor chris christie might be considering a run for the presidency but he's not apparently impressing voters in his home state. 56% disapprove of the job he's
doing, according to a quinnipiac university poll. that would be his lowest approval rating ever. willie nelson jumping into the movement to commercialize marijuana. the singer/songwriter plans to create his own brand of cannabis and intends to make it the best on the market. he will grow and sell willie's reserve and sell in two states where that drug is legal. that's the "cnbc news update" at this hour. >> i'm going to leave that alone. >> come on. >> it's going to be interesting to see how successful he is. >> if there are two people who will benefit from the legalization of marijuana around the country, willie nelson is one of them tommy chong is the other one. >> i was going to say snoop dogg. >> they've based their reputations on that. >> we'll keep track of. >> happy 4/20 everybody. the dow is up 225 points a strong session. the s&p adding 21. nasdaq up 66. up next the pros will tell
us how long they think the rally could last and wait till you hear what is toing the list of concerns. we're back in two. m] drivers to your marks... go! it's chaos out there. but the m-class sees in your blind spot... pulls you back into your lane... even brakes all by itself. it's almost like it couldn't crash... even if it tried. the 2015 m-class. see your authorized dealer for exceptional offers through mercedes-benz financial services.
holding on to decent gains today, the dow up 219 points right now. with the s&p up 20. but the big performer so far has been the nasdaq technology the leader among all the ten sectors in the s&p up 64 points right now. very close to the 5,000 level. there's the russell, the small caps up another one plus percent. look at the transports. even with oil prices moving higher transports up 8.1% right now. let's get more on how much more this rally could win. >> good to see you both. thanks for joining us.
michael, we're attributing the rally to the move in china over the weekend to reduce the reserve requirements for their banks. is it that or simply somebody came in and bought the dip from friday? >> i think that's it bill. i think it's a relief rally. i think china strikes me as schizophrenic. after they closed their stock markets on friday they increased the margin requirements, so they made it more difficult to buy. >> right. >> and they increased the amount of stocks you could short. that then saturday night, sunday morning we wake up and find out they've lowered their requirements at the banks. the punch bowl is back at the party. i don't know if they were messing with world markets or looked up and said wait a minute, we have to have growth sizzling markets, because that's the chinese thing to do. they got us back to the ball game again. the main point is we are still trading around the world based
on government intervention. china took it away china gave it back. this is a china relief rally in my opinion. >> jim, do you agree, this is all central bank fueled? >> i do agree, central bank fuel has been primary in the market not only china but the ecb, the boj and the fed itself with the obsession of when to raise rates. earnings are not looking that good. they'll be down on a year-over-year basis. we're quibbling about how much they're going to be down but they'll be negative. most likely the second quarter will be negative because that's what the forecasts are for the first time since the great recession. you don't have earnings growth. what you have are easy central bank policy around the world and maybe the fed on hole. those are cancelling each other out. that's why you have a zero return in our markets this year. >> a zero return? >> yes. we're at zero right now, up 1%.
most of that was because of today. >> you don't see dow 20,000 by the end of the year? >> unless we get earnings growth. we need earnings you have a forward p/e, high 17 p/e. if you don't get earnings growth, i heard the dow 20,000 forecast. i just don't see it right now. >> michael, what do you think? >> this is jim being logical, okay? jim is a very smart guy. he's being logical, making sense and looking at data. markets be with i'm going to say something risky if you're an investor markets don't always look at data and markets don't it the always care about the facts and the figures. >> are you saying markets are irrational? >> there we go, bill! once again, totally with me. look greenspan when he talked about irrational exuberance at dow 6,000, wasn't wrong that the stuff was expensive but he was wrong in the sense that eight months later we were at dow 8,000. federal reserve chairman gets it wrong by 33% in an eight-month period. the data are there. but the fed is still at the table.
and the fed -- >> michael, are you saying the trend quite clearly is higher? how much higher? >> yes. >> do you think dow 20,000 this year sounds reasonable? >> i'm saying that it's possible. i could also tell you that a down 20% move could also be possible. we really don't know. but what we really have learned is that it's going to be dependent on the fed. if they continue tightening policy yes, stocks could go lower and jim could be absolutely right. >> they're coming down for future quarters as well. what other concerns do you have? we were teasing that you have concerns otherwise for this market. what are they? >> i think one of the big concerns for this market is valuation. michael is right. markets can stay irrational. when you start getting to valuations we are now let's say it's either fully valued or slightly overvalue, it gets hard to push the market much harder.
the fed could turn around and not raise rates. maybe they could hint at easing if the economic data continues to disappoint. but we're not there right now. so those are two bigger issues. i think europe is still an issue. i might be one of the few that thinks that if greece leaves the euro, that is a bad thing long term. it's not going to it be a story the next morning but i think over the long term to show that the euro is an unstable system where countries are coming and going left and right, even though it is just greece i think is not such a good thing in the long term and not in their best interest. >> just before i let you go i heard a number of people i'd like to quickly clarify this, talking about the rate hike in june or september, ending restricting the rally, listen the last time -- the first rate hike was in 2004. we had three plus years of a stock market rally after that first rate hike took place. >> we also had 4.5% growth and
strong earnings growth. if you asked any of your guests in the abstract almost all of them would say yes. that's wa we have right now. almost all of them would say you still have to buy stocks anyway. that's the problem right now. it is setting up to be a very difficult period for the market. >> all right. >> understood. >> the real problem is, we're trading still on central bank intervention and not on earnings. if you look at the fundamentals the argument michael is making. >> corporate profits have been great since the recession. i understand now they done the look so great but it's not as if the entire thing is predicated on the lack of earnings growth. >> corporate profits have done well and earnings growth has been positive but stock prices have been more positive. there's an expansion in price to earnings multiples. the shares themself as a group have become more expensive compared to where they were six years ago. >> fair point. >> when you have these conditions, it doesn't make
sense in my mind to be chasing the high-flying stocks the facebooks and the yelps of the world. you don't have to own stocks with solid balance sheets and not too much debt that are still earn earning real money and able to bring that money to the bottom line. those are the stocks with which you can sleep at night and you may have to in a little while. >> two smart guys, two different points of view. >> thank you so much, guys. that's jim bianco and michael farr from farr miller and washington. the dow is up more than 200 points. we'll keep an eye on where that pressure might be as we head further into the close. the s&p up about 19 points the nasdaq 61. >> we mentioned ibm -- well, we mentioned tech knowledge leading the market. ibm is the second best performer in the dow. we'll tell you the numbers to watch out for on ibm when we come back. >> new data showing millennials may be better at managing their
money than their parents. why? here's the catch. why is their net worth lagging? sharon epperson to explain and give us some answers when we continue. financial noise financial noise financial noise doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got
this. man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one. try zip recruiter for free today. your mom's got your back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions backed by a trusted network of attorneys. so visit us today for legal help you can count on.
legalzoom. legal help is here. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details.
right now, technology leading the way, the top four stocks in the dow, kelly. now they keep moving around. cisco, apple, microsoft and the number one is ibm which is getting ready to turn out results at the top of the hour here right after the bell rings. >> look at that the bar getting higher by the moment. the shares up 3.5%. morgan brennan joining us now. >> let's start with morgan stanley, earned an adjusted 85 cents per share for the first quarter, 7 cents above estimates. revenue above forecasts helped by higher bond and equity trading revenue. their shares are up slightly. shares of halliburton also getting a boost. the company posted better than expected earnings and revenue. up 2%. royal caribbean, cruising in other direction, reporting weak fourth quarter earnings and a lowering of guidance in 2013. it blames an increase in fuel
prices compared to january. you can see those shares down 8%. sun trust earnings beating the street by 6 cents, results helped by lower expenses and growth in noninterest income. but the one company as you mentioned that's on everybody's radar is ibm which does report after the bell just a few moments, analysts are expecting to see 2.18 is per share and $19.64 billion in revenues. that would represent a 13% increase from a year ago. ibm has had the biggest positive impact on the dow today. shares are up nearly 3.5% ahead of those results. back over to you. >> that's quite a move. morgan, thank you very much. getting closer to the time of that earnings report due to hit just after the bell which will ring here in just over 12 minute's tile. a gain of over 200 points for the dow. will stocks hang on to these hefty gains by the closing bell? anything is possible in the final minutes of trade.
too. ♪ ♪ [intercom] drivers to your marks... go! it's chaos out there. but the m-class sees in your blind spot... pulls you back into your lane... even brakes all by itself. it's almost like it couldn't crash... even if it tried. the 2015 m-class. see your authorized dealer for exceptional offers through mercedes-benz financial services.
has cashart cashin stopped by? >> indeed he has. >> still up 210 on the industrials, s&p up 19. nasdaq holding on to decent gains ahead of the ibm earnings report coming up. joining us now, michael jones and bob pisani is joining the mix as well. michael, you think the markets are in a goalldilocks period. what do you mean? >> it's strong enough to keep the earnings going just strongly enough that the fed will be on hold at least through september and maybe december. that's a goldilocks environment. the economy is strong enough to keep the earnings going but not so strong that it forces the fed to move faster than we're ready for. >> we just heard people laying out a scenario for a 0% total return in equities. >> we're getting exactly what we thought. most people expect the flattish year earnings are flat fed
will raise in september greece is uncertain, china is slowing growth. this is a year for flat growth in terms of stock prices. that's what we're getting. we're getting churn, it's a very narrow trading range. but so far, it hasn't dpis disappointed. that's the key. it's been frustrating, it's a little weird but we're still within the trading range and not breaking out right now. >> it's frustrating for whom? because if you look at the u.s. yes, it's been frustrating. but if you go overseas earnings in europe will be up close to 20% from the first quarter. you are seeing the stock market up almost as much which means multiples, if earnings hit expectations multiples haven't expanded which means they're still very cheap for the u.s. we need to start looking overseas for the nest big leg of this rally. >> you're heavily invested in
the europe hedge investment etf, that wisdom tree did. didn't you help design that etf? >> we did. we thought, if you're going to be short the currency delong the stock that will benefit from currencies. that means you want an export weighting as opposed to a market cap. that means you get automatic earnings boost with the declines in the euro. that means that our companies will do better than 20% in all likelihood. >> that etf has been on a tear for the last year or so. is it overvalued right now? the dollar has stalled a bit here at these levels. >> i could only wish it's been on a tear for the last year. it's definitely been on a tear for the last three to four months. the currency has been declining for at least a year. you're dead right there. the stocks have just now caught fire. as i said earlier, if the earnings meet expectations just meet expectations, the price gains in the stock are
completely validated by the earnings, no multiple expansion. i think you could see a lot of multiple expansion in europe. i think the trade could go much further. >> we're come back with the closing countdown with bob pisani and michael in just a moment. ibm earnings could set the tone for tomorrow's trade. we'll get instant analysis from the pros the second those numbers hit. you're watching cnbc the first in business worldwide.
it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts.
centurylink. your link to what's next. there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.
welcome back. let's review this volatility we've seen in the dow in the last three trading sessions here. we have a quick chart to show that. coming off those highs of thursday, the big sell-off on friday, down 279 points on the industrial average and then today's rally, we were up 260 at the peak now up 209 as we go into the close. that's a lot of volatility there and for various reasons. bob pisani can address the confusion it's causing. wti oil continues to march higher. we're comfortable, though 60 $65 on brent north sea. the stock we're watching right now, the best performer in the dow, will be reporting earning at the top of the hour ibm with a gain of 3.6%. a lot rying here they've had problems with their hardware services business they're
transitioning to the cloud but it hasn't been easy. that stock up now to $166.59. back with mr. pisani and michael jones one against. bob, you mentioned earlier, a lot of confusion with the wild swings. >> one of the problems michael, is the confusion that's going on in china. the authorities are sending contradictory signals. it's confusing people. the monetary authority is saying we'll stimulate the economy. they cut the reserve rate. a guy in china wants to buy stock. that's a cue, go buy stock. regulatory authority, the guys who run the stock market are saying we're concerned about stock market bubbles. that's why to ban margin financing and over-the-counter stocks on friday. one is saying do one thing, the other is saying do another. that's where the confusion is. >> it's representative of the fact that china has gotten to the end of their borrowing build economic growth model. what they're doing now is try to
do that old borrow bit, let's lower the reserve requirement, making it easier to get access to credit but they're desperate to avod a stock market bubble. they're trying to use the monetary policy to get lending into the real economy, the regulatory policy from trying to keep it from going to the stock market. >> it's a central authority economy. they're micromanaging the economy and stock market. it's not an easy thing to do. >> they think they have the levers and they maa cairn make it work. i'm really pessimistic in all honesty that china can pull this off. >> very quickly, michael, since we're waiting for ibm's earnings, do you like that stock? >> we think ibm has a great business model. their cloud strategy was a little late to the game but they are starting the game. it's something we're always watching. >> like cisco, their biggest problem, same problem cisco has, smaller, nimbler competitors
eating into their software space that they've traditionally dominated. even the services space. we have to go michael. i have a bell ringing in just a second. stay tuned now, we'll get the ibm earnings. this should be interesting, set the tone for tomorrow as well. that's coming up on the second hour of the "closing bell." see you tomorrow, kelly. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. what a session on wall street. still strong names across the board, the nasdaq up 1.3% adding 62 points just below that 5,000 level that we've been fluctuating about for a couple months now. the s&p up almost 1%. closing right at 2100 on the nose. the dow adding 208 points that's good for 18,035. joining me now, cnbc contributor evan newmark, sara eisen and
steve liesman. also with us is "fast money" trader guy adami. welcome to all of you. let's start with what's pushing this market around today. a mirror image of friday. ibm was super strong maybe earnings playing into that as well. >> expectations going into ibm which i know we're expecting any minute. best performer in the dow. it started with the china news evernight. it didn't take chinese stock markets up because there was concern about the margin requirements and the new rules implemented friday when that market was closed. helped us ease into the idea of policy coming from around the globe, lifting this market up. it's an earnings story this week. you had some speakers. steve is watching that. there have been -- hasbro has good numbers. morgan stanley had pretty good numbers. at least on the bottom line. the revenue growth is elusive. >> it is still there, is that the message from bill dudley? >> i suppose so.
i'm not a believer in this up 200 points. i have no faith that tomorrow we won't be down 150. put a couple good days together maybe the market is believing in a second quarter turnaround. there's not economic fundamental data, there's not earnings fundamental data that makes me bullish on the stock market here. what's pushing this is a bunch of overcaffeinated momentum changers here. i think evan is one of them. >> you know i am not an overcaffeinated -- i'm quite the pop sit, in fact you're lucky i showed up, kelly. on friday -- >> you were sleeping. >> some of your guests told me it was the end of the world on friday. >> right. >> i was told it was the end of the world by several people. i think my phrase was much to do about nothing. then we come in today and today was just you know, a little come comeback from friday. >> it's always about something. any one session does not tell us
the future but after we stack up a number of them we're starting to learn something in one direction. >> i think it's what we've been expecting for the last few weeks. we'll see whether the economy has spring in its step come april and may. and if it doesn't, we'll have a totally nothing year and we'll be lucky if the stock market ends higher than it ended today. >> you sound like ken bianco. >> i think it does depend. i don't think things are as bad globally as everybody tends to think they are right now. if there's going to be a surprise, it will probably be to the upside. >> i know you've been more cautious. do you see anything in the tea leaves that point toward a brighter period for growth here as we move out of the first quarter? >> i've been caution in terms of what's been going on globally. i've said a thousand times, doesn't mean the market can't go higher and won't go higher that that's what we're seeing. transport actually showed
strength. the russell, the iwm, as long as that stays above 121, the s&p moves to the upside it's intact. you have one of those two things working. looks like we might have put in a short-term bottom in the transports. all good things would be bullish for the broader market. >> guys guys. >> go ahead. >> is there anything that tells you about today's trade that continues tomorrow? >> no. >> we've been rocking around this 17,800 to 18,200 on the dow. you come in one day, it's down 150. the world as evan suggested, is coming to an end. go up 200 points today and all of a sudden happy days are here again. i'm not buying it guys. >> you said it right at the top when kelly came to you. you're not confident that tomorrow you won't be down 150 to 180. you have to be market agnostic. look at the things that matter to you.
everybody's metrics are different. we all look at things differently. the way i look at things though, the russel is leading the way in terms of momentum to the you side. that has held in really well despite a couple relatively bad days in the s&p. >> true true. >> if you can get the transports to come back to levels we saw back in october, november the next leg higher should be in the s&p. >> how do we learn that it pays to buy the dip? we're flat for the year on the dow. coming off a brutal week and day on from i, you see a rally like this. perhaps it is this global liquidity shot we got another shot in the arm over the weekend, a surprise one, in china. as well as that is slowing and you're still in a zero interest rate world -- >> there are a lot of people collecting dividends in the market that are giving them a better return than anything than can get in fixed income. >> i step back. it's kind of rare to see wall street have -- we have had a run of excellent years for equity
investors. i understand it came off a terrible low and all that. but if you look at the chart, i mean the stock market since there was one bad time in the summer of 2011 and since then the stock market the s&p at least has gone like this. >> like i got on friday from robert humm he sends out wonderful internal memos about the level of the dow. the note on friday said we wiped all the year's gains on the dow jones. all i can think of is faulkner. we cover every up and down this is our job. we look for the signals. >> i think an important point, steve, this goes for the viewers, is their time horizon. i know a lot of people who watch the show want to know day to day what the market will do or even week to week or month to month. you have got to take a multiyear horizon if you don't take a multiyear horizon, you'll drive yourself bananas. anybody who watched friday thinking that today would tell them something different.
>> for anybody -- we'll hold this off. for anybody looking to get in they're constantly paranoid it's going to be the end, they missed it or what have you. let's hold this discussion for a moment and gets to the results for ibm. josh lipton has the numbers for us. hi, josh. >> well kelly, ibm just reporting. let's get you the numbers. ibm reporting 2.91 on 1 .5 billion. the street was looking for 2.80. it looks like revenue from software, 5.2 billion, hardware 1.7 billion. that conference call kicking off at 4:30 eastern. we'll be on it kelly and bring you headlines as they come. back to you. >> joshua thank you very much. ibm shares popping hire after hours on top of the 3.5% move they had today, despite what looks like a revenue miss. $2.91 versus $2.80 the street was anticipating.
morgan jobes us now, dan. that means they've done better than 10% year-on-year earnings growth, correct? >> yes, kelly. that's a surprise. 2.80, they topped it by a wide margin in terms of earnings per share. they were light on revenues which seems to be ibm's biggest challenge. it will be interesting to see what the reasons were behind their ability to do so well on the bottom line in terms of earnings that they thought more share back, was the sales being impacted by currency issues? just initially looking at this report it seems somewhat positive. it looks like maybe it leaked out a little bit. the stock has been trading up all day. it was up over four points when i left the office to come to the studio. it looks like a good earnings report in terms of bottom line. >> in terms of bottom line, i just want to stay on this point for one second. this company to some extent has been the poster child for
returning capital to shareholders. i wonder what the earnings numbers would be would we see double digit earnings growth if it wasn't for the massive buy back program? >> they're pros at taking share back buying them up lowering that denominator and driving up the epps with very little top line growth. that's been the recipe for quite a long. the street has accepted it up until the last couple quarters. it looks like it might be somewhat of an everything neared quarter. it could be they were able to mix their products a little better and gear more towards areas that have higher margins like software which is almost twice the margin that's in hardware. just initially look at the numbers, kelly, they just hit the line. it appears to me that there could be engineering going on to get that earnings per share up as much as they did. >> i want to hear from guy adami. naming a couple of the revenue numbers that the company
highlights, cloud revenue up more than 75% on an adjusted basis. up 60% otherwise. business analytics revenue up 20% on an adjusted basis. trying again to emphasize where the company is going. >> you unsounded like me real quick. you're talking about the poster child for financial engineering. real quickly, what is the right multiple for a company with declining business. >> three, four years ago, the reason i owned ibm is amazing visibility in terms of earnings and they had a tremendous recurring revenue stream. now their businesses are declining. eps, yes, we talk about the buy backs. they continue to miss on the revenue line. what's the multiple for this type of company? i would 9, 9.5% they're going to earn $16. you do the math. it's a $145 stock. i think the market will fade this rally we're seeing in the postmarkette sometime tomorrow. >> steve? >> my question to you, not being
a stock guy myself is the idea of whether or not you believe in ibm's ability to re-invent itself? is this a kodak story, which i don't think it is. or is this something else? they've re-invented itself as technology has changed. it doesn't turn itself on a dime like a tanker. >> can it re-invent itself? >> yes. >> sorry, steve, my ear piece went out. i think they have the ability to re-invent themselves, yes. as you've pointed out they've done that over the last few decades successfully. the world changes much faster now than ibm is capable of change. you just said it, they can't change on a dime. i believe the world is passing them by. they continue to buy back stock at a record pace the only reason you're seeing the stock rally, the relief rally today.
i think they're a declining business. >> dan, last word here before you go. why are you a share holder in this can company? is it because you see growth prospects you can highlight for us? >> kelly, it goes back to what you're talking about. you look at late '80s, they had tremendous competition from foreign competitors, reshuffled the cars got more into services. we had the big explosion in terms of client server network. the migration off the units into the cisco, intel, microsoft model. they reshuffle, got more into software. we hit the dotcom double and implgs tjs spend i.t. level dried up. the big data and the cloud, when that hits that inflection point of 15% of total revenues in every other situation where they have emerging businesses like software and services, youns you
hit that 15%, you go the engine starts to go the battleship turns and they're moving. >> just want to point out the margins were better. at the top of the press release, they do point that out, 48.2%, up from 47.8. it's an expectations game. it's up 3% year to date. it's obviously going to be a big ship to turn around if they can do it. it's all about near-term expectation with the results and these appear to be better. >> shares are rallying. they're off the highs after that report, still in positive territory. your point is well taken. thanks for being here guy adami and rest of the crew coming up on "fast" at 5:00. thanks to dan morgan as well. straight ahead, u.s. stocks.
up next what that means for china's red hot stock market and in turn stocks right n.e.a.r. in the u.s. former new jersey governor jon corzine reportedly launching a hedge fun. the panel has plenty to say about this one coming up on the "closing bell." you're watching cnbc, first in business worldwide. with millions of reviews and the best hotel prices... book your next trip at tripadvisor.com today. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪
welcome back. china commanding attention again today. the country's central bank made a big cut in the country's federal reserve requirements. joining us to discuss, eunice yoon yoon. what a day to be here. it's as if you're coming over here the same way the impact of the moves are sending the market here to 200 points. is that logical? >> it was a big move. a loot of people were talking about what we know and what is clear is that the policymakers are much more nervous than they were six months ago, just because of the economic data that's been coming out and the fact that in january and february, we thought there was going to be bad data and in march we thought there would be
momentum and uptick. after that a continuous momentum rolling in the right direction. we saw a bit of a tapering and that's one of the reasons -- >> former treasury secretary hank paulson came out last week i think he was promoting a book -- >> he is. >> he talked about -- he came out and said basically, listen you can play monetary games here. the chinese government can play monetary games but at the end of the day there has to be structural reform in china. >> yes. >> do you think they believe they can get away with fiddling around with monetary policy or do you think they'll attack some of the structural elements that are going on in the chinese economy? >> it looks as if they're attacking some of the structural issues. one of the arguments that have been made is that the economy can't progress without some of the structural changes. anecdotally, we've been hearing about some measures that are being put in place.
if you look at the stimulus measures they are taking now, this 400 basis point cut, it's a big move but at the same time it's not big like it was back in 2008/2009. they are still much more conservative than they were in years past. we are seeing that the authorities are comfortable with a certain level of slower growth. but what was a little bit disturbing this time was that the commentary that was had in q1 gdp was that jobs and wage growth were going to be very important indicators. and at that time they said okay, wage growth and the jobs market is actually holding up. now we have this big move. >> i wonder how comfortable the authorities are eunice with the stock market shooting straight up. 40% in three months almost 100% in the last 12 months. then you saw moves like what happened on friday which impacted the stock market and went lower today. how sensitive are the authorities to this idea that it's a one-way ticket higher for chinese stocks? >> they're very sensitive to it.
they don't want to have the margin trading getting out of hand. there was tightening about margin trading on friday also that announcement about how they'll make it easier for short-selling stocks. the signal was that the markets could go up but it could also go down. that was one of the reasons why you saw a lot of -- >> what does this mean eunice for the dollar/yuan exchange rate? that's a potential weapon they could have to help stimulate their economy. it is fraught with geopolitical tension between the united states and china that you think they'd be reluctant to do it. >> the authorities have already said they don't want to use that as a weapon in order to try to make the exports more competitive. but another issue with the currency is that the government has made it quite clear they do want the yuan to become an international reserve currency and that they are hoping that the imf is going to make
announcements sometime this year. so that's another reason why you're seeing a lot of activity in terms of the stock market. they want the hong kong stock market and the shanghai stock market linked to be away -- >> don't they have a long way to go before it's an international exchange in terms of opening up their banking system and their currency to international trade? >> it is it's definitely a long way to go at the same time, they're moving quickly. everyone was surprised at the amount of money that is moving in and out of the shanghai/hong kong market. a lot of that spilled over to hong kong. the government has been pushing the equity rally. and i really seeing it as a way to create wealth in the country because the property market hasn't been doing well. the wealth management products which have been seen as an interesting way of investing and getting return on roi, that's actually not really as much of a
viable option. >> i hope it works better in china than it does in the u.s. they may learn it doesn't exactly work the way you want it to. >> eunice, thank you so much. our eunice yoon here at post nine. jon corzine reportedly making a return to finance, this time by opening a hedge fund. remember this is his old firm, mf global collapsed after making risky bets on european debt. who is better at managing money, millennials or their parents? you may be surprised at some of the results. back in a moment. very good. you see something moving off the shelves and your first thought is to investigate the company. you are type e*. yes, investment opportunities can be anywhere... or not. but you know the difference.
welcome back. partnering up with the rich and powerful, not usual but how much fuel that recipe has when you have a partner that oversaw a colossal investment collapse. jon corzine is reportedly launching his own hedge fund. we're joined now by andrew stillman and the managing director at wedbush securities. how much capital do you think he could raise. >> thank you very much kelly. i don't know if he can raise any capital but jon corzine was lucky enough to be the senior partner at goldman sachs when
they went public. he doesn't need to raise any outside capital to start a hedge fund. >> it's almost shocking that even this discussion would be taking place. he's about as radioactive as chernobyl voil right now. what's next? are we going to ask the captain of the exxon valdez or the captain to charter a party boat for us? the issues against him are not resolved and extremely problematic. >> can i mack a completely -- what's the right word unpoliticked observation here? the very trades that he was involved in that got him in such trouble ended up being -- >> profitable. >> they were massively profitable. i don't know what the charge is with the justice system and the civil system -- >> this is money. >> the trades he was making were the right trades.
>> and absolutely -- >> scott? >> didn't they get it all back? >> hang on hang on, one at a time. scott. >> you're completely right. i've been a trader for a number of years. the trades that jon corzine was in european sovereign debt trades, they were really good trades unless the market is really against you. and that's basically what happened. >> let me just -- >> a billion dollars of klein the money missing. there's a billion dollars of klein the client money missing. >> hang on. andrew. tnz tonight -- [ talking at once ] >> i want to be clear about this every trader always says my timing was just off. that's the story with jon
corzine. any trader knows that you know timing when it comes to being a trader timing isn't anything. it is everything. >> we're not debating his skill. >> i understand. here's my take. on wall street they will always -- there are people greedy enough always to give you a second act. go back to ltcm all the guys in greenwich nearly blew up the entire financial system john meriweather turned around and raised money for another hedge fund. >> jon corzine -- >> his hedge fund did close a few years after that. >> if johnn corzine is cleared by the authorities, he could raise more money. >> maybe it's not such a good thing on wall street but a trader that can lose a lot of money is somehow perceived, many times, as also a trader who can make a lot of money. >> one fact here.
let's establish one fact, scott. the latest story i read i don't know that it's the right story, said they found all the money and paid back all the clients. is that accurate? >> that is accurate. >> it went missing is the problem. >> all the money was eventually found. >> it was found and paid back. >> the thing was, i knew a lot of mf global insiders. the money wasn't really missing to begin with. after mf global went under, the customer seg fund money was -- people knew where it was, it just wasn't at mf global. you know it was at clearing banks and places like that. >> you can answer this probably. he might not even legally be able to file for hedge fund status and raise money until the investigates are over with. >> that's true. >> the $64 billion question if you are responsible for pension money, would you trust your money with jon corzine given what they've alleged under civil charges, only allegations, but it reads like a stephen king
novel in the terms of the parade of horribles, nobody who was a fiduciary with client money can turn money over to jon corzine with a conscience. >> he sounds like he can do it. >> there are enough greedy people out there. a 68-year-old man, why would he want the aggravation of doing this if he's worth several hundred million dollars? >> time now for "cnbc news update" with sue herrera. hi sue. >> here's what's happening for you this hour. new york governor andrew cuomo is in havana meeting with cuban officials. the first american governor to visit cuba since the recent thaw in relations with the communist nation. the trip is men to the foster greater ties between new york and cuba.
the findings from the latest customer satisfaction index found jetblue delivered the best customer service among the major airlines last year followed by southwest. overall, the report gives the airline industry a score of 71 out of 100. the fourth worst among all industries. >> the federal government wants to remove most of the world's humpback whale pop laying from the endangered species list. the national oceanic and atmospheric administration says protection and restoration efforts have led to an increase in humpback populations in many areas. and it's official the philadelphia eagles have signed quarterback tim tebow to a one-year contract. no financial terms were disclosed. tebow hasn't played in a regular season game since 2012 with the new york jets. he work as a television analyst last year. and that's the "cnbc news update" for this hour. back to you, kelly. all right, sue, thank you very much. we flip it over to morgan brennan for an earnings alert.
>> lamm research q3 earnings beat equipment ongz the toparnings on the top and bottom line. the company also offering strong current quarter guidance better than the street was expecting. for those reasons we're seeing shares of lam research trade up 8% in afterhours. we're seeing green on wall street today. are the gains enough to heat up the hot list. also dr. oz battling back against critics that claim he endorses quack claims and cures.
mobilegeddon piece. all these small businesses are freaking out because google's changing the algorithm. if you search on mobile mobile friendly results. hey, where should we eat? it's going to favor the restaurant with the mobile friend friendly spike. we're seeing a lot of action there on the website. the cost of opening a franchise, we took a look at the top ten franchises how much in terms of franchise fees? you also have to have a certain net worth and also royalty fees and initial investment. what it would take to open up that mcdonald's. it's going to cost you quite a bit. on the other hand the average mcdoneled a's returns scdonald's gives back $2.5 million. >> a number of people ask, how much would it be to open a chipotle? allen wastler, thank you. appreciate it.
you used to sleep like a champ. then boom... what happened? stress, fun, bad habits kids, now what? let's build a new, smarter bed using the dualair chambers to sense your movement, heartbeat, breathing. introducing the sleep number bed with sleepiqtm technology. it tracks your sleep and tells you how to adjust for a good, better and an awesome night. the difference? try adjusting up or down. you'll know cuz sleep iq™ tells you. only at a sleep number store where you'll find the best buy rated mattress with sleepiq technology. know better sleep with sleep number.
welcome back. millennials may be better at managing their money than their parents but they do have one great weakness. our senior personal finance correspondent sharon epperson is here with more. >> it's not just the parents, millennials range in age from 18 to 29 years old are faring better financially than all other age groups. an important factor contributing to the sentiment, 32% of employed millennials report higher job security than a year ago. while only 23% of employed americans feel more secure about their jobs. job security is giving them the means to save more. 30% reports their savings are in better shape than the past 12 months. that's more than double the percentage of those 50 and over in their parents age group. 33% also report their overall financial situation has improved in the past year while only 19% of those 50 or older say their finances are better than a year
ago. they are lagging behind in one important category. their network. the age group that fared the best was the 30 to 49-year-olds 30% of them report a higher net worth than a year ago while only 18% of millennials could say the same thing. the study suggests that while millennials are doing well financially, their net worth is held back because they are not investing in the stock or housing markets as much as other age groups. >> there's an interesting fact. thank you for the information on the bank rate survey released today. a surpriseing headline. some of the folks are saying there's no way millennials are better at managing money. are they really? >> there's a widespread misperception that millennials are all buried in student loan debt, can't get jobs and are living at home with mom and dads. we get a much different read from millennials. the job security numbers are off
the charts relative to other age groups they got the memo on savings. we're seeing behavior from millennials that show an inclination to save more so than their predecessors. one thing is millennials are more likely to have money tucked away than the next age group up, those 30 to 49. a lot of the behaviors that we're seeing from millennials body well not only now but the decade to come. >> i interpret this in a very bullish way. i feel like i'm wrong. i feel like please tell me greg, that all these people are not saving money simply because they're living in their parents' basement. is that why they're saving money? or are they saving money because they have good-paying jobs and have their hands on their own personal finances? >> there's a lot more of the latter than what we hear about. everybody wants to think that all millennials are living at
home with mom and dad. that's not the case. they also -- look at the job security numbers, it shows the fact that they're not all working as baristas. there's a lot of people that have technologically savvy skills, social media skills that employers are craving. that shows you they feel not only secure in their job but comfortable that they can get another job. >> i'm interested to the extent in which this registers any change at all. a 3-2 ratio of job security on the part of millennials compared to the normal population like 30% to 23%. what was it last year? are millennials feeling increasingly secure relative to where they felt last year? and is that gap the same as it always was? >> it's increasing. the economy is getting better. everybody's feeling better now than they were a year ago and it continued over the past several years. each year is a little bit
better. with regard to millennials, the difference in some of these things, they're beginning to separate themselves even more from other age groups. >> one observation might be that it should be higher for older groups because they have more experience in the work force, more years there. they should feel more secure. i wonder if we're also registering a lack of security among older groups out there? >> actually the group between the ages of 50 and 64 this goes back for the last four years we've been doing this poll they show the lowest feeling of job security month in and month out. >> that's amazing. >> a lot of people in this group were particularly impacted by long-term unemployment coming out of the recession. >> so troubling. >> they know a lot of people that were impacted. >>en is it bad news for the economy that all of the millennials, the biggest, fastest growing population and wealth group are not out spending money and juicing is the economy and buying stocks and taking risks? do we really want them to be so
conservative? >> long term i think we're all better off if americans have more savings and less debt. the millennials are our latest hope for that. my biggest concern with millennials. i like the fact that they're saving, i don't like the fact that they're overconservative in investments. they have the least inclination to put money in the equity market. that's despite the fact that they'll have the biggest retirement savings burden in history. >> you're looking at an echo of the financial crisis. the great depression it echoed for a generation or longer until stoblgs became a comfortable vehicle to invest. i think millennials will feel this for years. >> kelly, as you are well aware, you are a millennial and i am not. you are a very conservative person. i don't think i'm a huge risk-taker. >> not all millennials are conservative. >> i'm worried for your
generation, actually. >> we're worried about yours. it goes both ways. >> don't worry about me. i'll be fine. >> we have to go. >> the other thing, these minlials are looking down the pike of social security not being there. they should be saving more until we work out the social security problems. >> greg, thank you so much greg mcbride on a fascinating survey for us. coming up dr. oz one of tv's most famous faces under fire for some of the content on his send kated edsyndicated show. his medical colleagues at columbia are taking aim. he's firing back. that story coming up next. be sure to tune in to "closing bell" tomorrow fred tomczyk will join us in a cnbc exclusive. don't miss it.
woman: it's been a journey to get where i am. and i didn't get here alone. there were people who listened along the way. people who gave me options. kept me on track. and through it all my retirement never got left behind. so today, i'm prepared for anything we may want tomorrow to be. every someday needs a plan. let's talk about your old 401(k) today. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it?
welcome back. we send it out to morgan brennan for an earnings alert. >> sports net moving higher in after hours, following an earnings beat. they earned 8 cents adjusted per share topping estimates by 2 cents, revenue of $213 million, also above expectations. the company said first quarter billings growth was the highest
it's ever experience as a public company and said it added over 8,000 customers. taking a look at shares of fortnet, up over 8% in google microsoft, amazon yahoo!, and facebook later in the week. there a look at some of the other big names on tap. big players in the energy and biotech sectors also reporting. our panel will weigh in on what they're watching when we return. guaranteed. you picked a beautiful ring. thank you. we're never having kids. mmm-mmm. breathe. i love it here. we are never moving to the suburbs. we are never getting one of those (minivan). we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life state farm is there. big day? ah, the usual. moved some new cars.
hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
i don't get why you need to say this stuff because you know it's not true. so why when you have this amazing megaphone and this amazing ability to communicate, why would you cheapen your show by saying things like that? >> that was last june when senator claire mccaskill pressed dr. mehmet oz in a senate hearing and now the famed doctor is under fire again. this time a group of doctors wanted him booted from his vice chair role at columbia university. they're claiming members of the public are being misled and endangered which makes dr. oz's presence on the faculty of a prestigious medical institution unacceptable. this controversy is just the latest for sony. on thursday dr. oz does plan to
use his show to address the controversy. joining us for more is dr. bob arnot, former nbc chief medical correspondent. dr. arnott it is great to have you with us. what do you expect that dr. oz can, should will say on thursday? >> so, you know the standard kelly, we've always judged medical journalism by and information on television has been, is it the highest academic standard, a dartmouth or stanford or harvard? is it evidence-based medicine and it is into the medical literature. it would appear that dr. oz would fail. a british journal article said 46% of the studies were backed by the science, 15% were contradicted and another 39% there wasn't any evidence. however, the authors have never released any of the data. now, i just got off the line with dr. oz about 30 seconds ago, and he says, you know
surgeons make mistakes but they don't make them twice. so he has not mentioned weight loss in the last year. he no longer uses any flowery language, as it were. what i want to do kelly, is this it's super important to figure out what is this attack. here is what it's not. this is not a bunch of his peers from columbia university. this is not the dean of harvard and stanford and dartmouth medical schools. this is a group of doctors have very strong industry connections. the lead doctor here is thought to be a very good friend of the tobacco industry. one of these groups the american council on science and health which attacked me before is led by somebody who was convicted for medicaid whose medical license was taken back and spent some time in federal prison. so understand that there is an agenda here and it's thought to be gmo. that is the gmo industry is very concerned about dr. oz not because he's against them but he does want gmo labeling.
so kelly, this is a very exciting story that's not quite what it appears to be. >> although it will have repercussions repercussions. dr. oz is a figure who sells millions and millions of dollars worth of products and a lot of people assume his advice is as good as they would get from their medical doctor. dr. bob arnot, are you saying that starting now that people should continue to feel this way about what he is selling and saying? >> well so, you know the most famous and egregious incident had to do with a natural pathnamed lindsey duncan. the federal trade commission came back and said whoa let's look at this. dr. oz i just got off the phone with him, and he swears to me and i believe him, that he is not receiving any funds from any of these supplements that are sold on the show. that is his word. that is his bond and i trust him. >> all right. dr. bob arnot, thank you so much for giving us a preview, an early look of what we might hear
from dr. oz come thursday. >> there will be a big counterattack. expect fire and smoke this week. >> what's that? >> i'm saying expect fire and smoke. there is going to be a virulent counterattack this week on dr. oz's show. i think it will be a must see in the annuals of medical journalism. >> appreciate you being here. take care. ibm kicking off a big week for tech earnings. tomorrow we will get results in yahoo!. on wednesday facebook and ebay and qualcomm. thursday we have google microsoft and amazon. we're looking to the panel to see what they're expecting to hear when we come right back. actually, we're going to do this right now. hi, everybody. what are we expecting? look at the calendar the lovely list of companies coming up and give a sense of what's most important? >> i'm not going to look at individual -- what i'm going to look for is the reaction of stocks to the earnings and i just looked at lamb research and
fortinet and these stocks they did nice beats and were up 8% or 9% in the aftermarket. it may be an indicate they're the market is basically so dampened expectations on earnings that anything that even looks remotely good is going to be an opportunity for people to buy stocks. >> two factors i think when you look at some of the names like under armour tomorrow chipotle coca-cola, mcdonald's, all the big consumer names. what is the underlying strength of the u.s. consumer and whether they're spending more at fast food restaurants or at convenience stores because of the gas savings and how are these big multinational companies dealing with one of the biggest problems they have right now which is the strong dollar headache? investors looking beneath that to see how those shares trade. investors are rewarding companies like hasbro which are still posting solid top line growth. >> i'm hoping steve liesman says nothing about expecting more words from bill dudley or anybody else from the fed. >> i think we're quiet this week on the fed. i always like though the
mcdonald's story. i another know is more mcdonald's -- people going to mcdonald's more a sign of good times or bad times? i always think like if they're not going to the mcdonald's, maybe they have upgraded to something a little better or if they are going to mcdonald's maybe they're stopping eating at home. >> or changing habits and they don't want -- >> mcdonald's is its own curious story on its own, so i just take a look at the macro numbers and i'm interested in what you were talking about, this willingness to forgive on the currency thing and not seeing it as a perpetual negative. i think we're getting to that point, but i think there's still some punishment to be handed out. >> i'm going to start focusing on millennials' behavior kelly. i'm going to be watching your personal consumption habits very closely. >> what about a millennial big mac index. >> i just don't see kelly shoveling down the quarter pounders but i could be wrong. >> i would like to see more people taking risks like we were discussing, getting involved in the market, but we'll save that for another show. thank you, guys. that does it for us on "closing
bell." "fast money" is coming up in a moment. melissa lee, what's on tap? >> we are trading ibm's earnings after the bell. we'll be on the conversation call. also an exclusive with the vie chair man of lionsgate. >> straight over to you. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city's times squar i'm melissa lee. here is what's on the fast track tonight. ibm out with earnings moments ago. the stock losing all of its earlier gains after hours. will it recover in tomorrow's trade? and a new book says google almost made an $11 billion deal to buy tesla. clearly that never came to fruition but could google still be on the prowl for another big purchase. first it was apple, no go pro, a chinese coming out with its own extreme camera option. can you guess which was shot with go pro. let's start off with ibm