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tv   Closing Bell  CNBC  February 18, 2016 3:00pm-5:01pm EST

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time, the lower oil prices and gas prices were supposed to help them out. >> and it didn't happen and in two or tloo years is it going to be better? interesting position. thanks for watching "power lunch". >> "closing bell" starts right now. hi, everybody, welcome to closing bell, i'm kelly evans. >> and i'm bill griffeth. >> happy second thursday. >> you didn't think i would do that, did you? >> the s&p on track to break its three-day win being streak. right now down three points. but it's been on either side of unchanged and energy sector has been the biggest loser so far today which we'll talk about and those numbers from walmart disappointing as well and that's been a drag on the dow for much of this day. we'll see if they can turn things around into the close. >> speaking of purple, marissa
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mayer begins talking as they slim down the magazine purchases. >> heating up the political and religious world, the pope saying donald trump is not a christian because of his stance on immigration. and his desire to biltd a wall instead of bridges between mexico and the u.s. mr. trump for his own part saying the pope's remarks are disgraceful, his word, we have the latest reaction from our own larry kudlow coming up. tech ceos coming out in support of tim cook, apple ceo fight ag court order requesting help to unblock an iphone belonging to one of the san bernardino attackers. in the next hour of the closing bell. >> let's start with the tug of war with walmart on one side and ibm on the other. bob pisani covering it for us.
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>> the reason is dow is up, probably gotten 40 points from ibm. take a look. ibm had a very rough year. it was 165, now it's $133. i think this is the best way since september. very good volume overall. morgan stanley upgraded the stock to overweight and it's important to note, they are claiming that the transformation to cloud and anl lit tick s has been under pressured. but they are saying the cloud and data business is 35% of revenue and here's what's key. ibm having a big analyst day, february 25th. i think they'll probably release more info at that point and hopefully they are betting their thesis will be bet out and the share price will move up. they had declining revenue for years and they have to stabilize that and then you'll get real
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believers. let me show you walmart, which did not have a great year last year either. it's down today and they did have their earnings report. the bottom line, they lowered the sales forecast for the year. there are a couple of issues, they get a strong dollar, 30% of their sales outside of the united states, including china, 11% of their sales. what the street is really worried about, up 0.6%, that's a real disappointmendisappointmend food deflation, reduced their sales. if that's true, it's good news for consumer, lower prices can't be bad but bottom line, it's a real disappointment they can't get comparable store sales up. we were talking in the prior hour about the impact from amazon. but the bottom line here, that stock also had a very toughened of the year last year and it's just now starting to bottom out. back to you.
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>> interesting two old school companies struggling to keep up with new world competition right now. >> in the case of walmart, amazon and ibm, whole host of smaller more nim bl data competitors. >> people will kind of maybe shake their heads that food deflation is a problem. if we can look at kroger because it's a real thing. the lower -- the more there's food deflation, the more pressure that puts on the profit margins. >> it's definitely real. there's a glut in the united states. i'm sorry, i have a hard time -- i do think it's impacting their margins and definitely impacting their comparable store sales but hard time thinking it's anything but agood thing for consumers. >> they are probably the marquis grocery name. it's interesting to see if the whole sector is affected.
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>> tooyson has been talking abo this as well. >> yes. >> let's get to the closing bell exchange. we have kimberly from wealth management and peter costa and rick santelli. after three consecutive days pretty good rallies, 1% each day for the s&p. is the rally pausing before it resumes higher or has this rocket run out of fuel? >> the market was oversold going into the beginning of the week, now it's overbought. we're going to continue in the pattern of being oversold, overbought for probably another month or so. i think there's going to be the volatility. today there's none. but we will continue to see it and i think that will continue. you know what, it's a good thing, good for us on the floor. most of our accounts are trading accounts, they do get involved and get out of it. it's actually a positive for us.
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but overall it's a little scary when you see the market up 5% or 4% on the week and next week might see a turnaround. people get nervous with that. >> i wonder whether this market reflects this tug of war going on where you had james bull ard saying first, a little more hawkish, maybe we shouldn't be going as we planned, maybe we should respond more to the weakness we're seeing in financial conditions or what have you, that's what kind of started this rally. then you had the strong jobless claims number and people are saying, wait a minute, maybe this economy is okay. it seems like the school of weak economy, more accommodated fed and stronger economy and not so much, this seems to be playing out in front of our eyes today. >> well, yeah, james bullard, st. louis fed, did use the word unwise. i think i like that word. i think it's unwise to have these fomc numbers running
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around confusing the market. i don't see the board of directors of gm questioning the strategy. behind closed doors i understand it's supposed to be a group decision and whether it was greenspan or janet yellen that there needs to be a lot of voices there but it doesn't mean that they have to be out in public. i think that the market is confused. i think communications and transparency are horrible. they don't go together. talking a lot doesn't increase transparency and i think when it comes to data that you reference, i'm a data watcher. we have two negatives in a row which is very unusual. i still say if you look at the data, tuning everything else out, the data isn't very spectacular thus far and it's definitely worse than last year and last year wasn't spectacular compared to 2014. >> by the way, we should add in there comments by ray dalio that we need tell komter e helicopte
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money. >> and being what he is, i'm sure that he would welcome that and i understand, we all like what we like, if you're a rabbit, you like carrots, but there's also a notion to look into the macro. what's best for the country? for getting the big dots, what's best for the long term health and stability of the u.s. economy? i don't think the helicopter notion fits that bill exactly correct correctly. >> some have been warning if the fed doesn't do anything more aggressive, it might be congress that sort of quietly loosening the purse strings and money comes into the economy that way. not necessarily something a lot of people would prefer to see happen by the way. it could also be a misallocation. but what do you think here about the macro trend, in how you're investing in this market? >> i think the bottom line here, one two and three didn't work
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before. why would that work again? i echo rick's comments in that i think what we just have a lot of transparency a. a lot of people supposedly just confusing investors. what i'm seeing my thriving retirees and clients and inve investors they are confused and don't know where to go. they need to create we will lgt while staying in the market and healthy balance sheets and long term growth and increased dividends on balance sheets, these are the stocks looking at at&t and even exxon and walmart has a 3% yield on it. these are the kinds of things we're putting in the portfolios to stay in volatile times for the long term. that's where real wealth is created. >> when i read that you are cautious about this market long term and fully invested, is that
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just your view you need to be invested in this market to make money? >> that's our philosophy, to be fully invested in 44 different countries at 12,000 different stocks. so but we do have dry powder on the sidelines that in these volatile times we're adding to portfolios in value stocks. those at about 200 to 300 basis points in the long run. some of these investors have to get rewarded to stay in the markets for the long term. but that is the 1 percenters make their wealth and have a long term discipline strategy. we need to take the long view of this. >> it's not just about the 1 percenters, it's about everybody. but before we go, what levels are you watching here? does it come down to the direction of crude oil? >> crude oil has been guiding
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the market for the last however long. i'm still looking at the 1850, 1860 level as really a great bottom. every time you look at it it gets more and more solid. then you're looking at potentially with some positive input into the second half of the year, maybe 2100. we have wiggle room. there has to be trading opportunities and still think we're probably going to have the opportunity 1860 level in the s&p. i think it's happening and want to jump in at that level. one thing i haven't spoken about is deflation. that's something we need to keep an eye on. >> grocery aisles. >> peelter, when was the last episode of deflation you experienced in your life? >> real deplags, i've been in this business a long time and don't remember a deflationary
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period. you look at oil and still hasn't got from under its own weight and oversupply in foods. there's a lot of things you are not seeing inflationary pressure anywhere. if you don't see it at some point, the other side of that coin is deflation. i think it's we have the potential for that. >> i haven't seen a real deflation episode in my life -- >> you shop at walmart. >> and pardon? >> you shop at walmart. you see deflation there all the time? >> no, i see lower prices. lower prices isn't my definition of depression era deflation, it dovetails with the only tools they have. >> good stuff at the end. this will be on the midterm, folks, pay attention there. >> thank you, good to see you. >> we have a news alert from the art world right now. robert frank, what's going on? >> this is a blockbuster deal,
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kef griffin purchased two paintings for $500 million setting a new record for work of contemporary order. griffin purchased a jackson poll lack and the prices aren't broken out, believed to be the most expensive contemporary work ever sold and second most expensive ever sold, now griffin has loan d the two pieces to the art institute of chicago where they'll remain for the foreseeable future. two paintings for a half a billion dollars. back over to you. >> who was his broker? >> who is the broker? this is a private transaction, i think i know who the brokers were but can't say but this was this summer before we started to see a little weakness in the art market. >> just sort of a joke, you know what i'm referencing, the broker who overcharged everybody -- >> wasn't boufier, no, wasn't
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him. >> how ironic, we were discussing deflation and now two paintings purchased by ken griffin for half a billion dollars. how ironic. >> wow. let's see, about 45 minutes to go in a market that has been guy rating throughout the session. dow currently down 23 pointsz. walmart is pulling it lower but the s&p down 7 points. even more so is the nasdaq, giving up 36 points at the moment. >> coming up, the latest vote at the federal communications commission. could be a major game changer for millions of tv watchers, former fcc commissioner rob mcdowell will weigh in on the vote to open competition in the cable set top box industry. >> marissa mayer under pressure to turn the fortune around. we'll see what she had to say. you're watching cnbc, first in
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welcome back, a couple big movers has popped with the graphics chip maker rising on better than expected earnings and guidance for the current quarter. sales to high end manufacturers are offsetting a decline in pc sales which we keep hearing about from other companies as well. brocade earnings topped street estimates thanks to lower taxes among other factors and upgraded the stock from a buy to a hold. brocade is on track for a more significant cycle than expected. up 13.5% today. >> marissa my mayer speaking in san francisco after the internet company laid off more than 300 employees. josh lipton was on the scene. what did she have to say, josh?
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>> reporter: marissa mayer on stage behind me talking to these developers for one emphasizing the reach that i can't yahoo has. marissa talking about the future of mobile and how she sees mobile evolving from here. >> not just the experience as far as smaller screen and create ways to continue to deeply engage communities of users based on their interest and passions, opportunity here to change mobile by tapping into the power of the community. >> what she really emphasizing there, mobile engagement and that's what advertisers care about. how much time do you really spend in the app? how xpulsively are you checking that app? she's saying she has a set of tools she can offer developers
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to engage with your audience more. these are anl lit ticks tools and they can really change that app into a viable sustainable money making business. yahoo! saying 250,000 developers have used the tools so far with which they created about 800,000 apps to date. yahoo! telling me they were expecting about 1,000 vemers here today. that pales in comparison to the kind of attendance from other tech giants when they have their developer days but not too unexpected given the fact that the future of yahoo! is still in serious question. back to you. >> josh, also the information out there talking about how traffic to yahoo!'s core sites is down significantly. where does this leave the company and particularly as we've talked about possible bidders for this business? >> i think where it leaves the company is a possible real
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street fight. marissa mayer made it clear she thinks the best plan is to get it leaner and meaner and focus native and social ads, we have a group of invisters who think that isn't the right plan and biggest pay day for shareholders will be not trying to keep turn around yahoo! but to sell it outright. yahoo! for all challenges attracts a lot of attention. those sites third most viewed on the web. around 200 million a month. you could see potential bidders there where it's media companies think that's an audience where we can cross sell a lot of products and services and it does look like a street fight is brewing as the future of yahoo! >> thanks, see you later. josh lip ton in california. we're heading to the close with 40 minutes left in the trading session. the trading range on dow has been 110 points, pretty narrow today, not a lot of volatility.
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and the s&p and nasdaq not moving much as well, down 39 on the nasdaq. >> coming up, two time police commissioner ray kelly gives us his take on apple's controversial refusal. details from the latest wall street journal poll that shows that ted cruz edged ahead of donald trump in the polls nationally. plus larly kudlow will go into donald trump and of all people, pope francis. after this.
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welcome back, the latest poll shows ted cruz inching ahead of donald trump. let's go to john harwood with more. >> kelly, that's right, the nbc wall street journal poll shows ted cruz up 28-26 nationally. it's all about south carolina. we're 48 hours out from this south carolina primary, which has been crucial like iowa and new hampshire on the path to path republican nominations. look at these numbers, they show trump on track with a double digit lead over 30% over ted cruz, marco rubio and others trailing behind. here's an unpredictable factor, which just arose today, donald trump who tangled with so many
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in the primary season is now skirmishing with the pope. the pope during a trip to mexico or leaving a trip to mexico said that somebody who proposes building walls without building bridges is not a christian. donald trump took umbrage to that. here's his response. >> for a religious leader to question a person's faith is disgraceful. i'm proud to be a christian and as president i will not allow christianity to be consistently attacked and weakened unlike what happened now. >> pretty much not hard from skirmishes with news organizations and big businesses that cut ties to him or other rival candidates. will he get in trouble because of a spat with the pope? we'll find out two days from now. in the meantime there is so much reaction to this. we want thoughts from senior
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contributor larry kudlow. wow is all i can say to what's going on in the last couple of hours, which are you surprised pope francis responded in this way or what do you make of this? >> nothing pope francis says surprises me. he's the holy father. you know, i've always felt we need him to help save our souls, we don't need his economic theories and his immigration theories. by the way, all of europe is putting up walls and fences to stop the refugee problem. i don't know. mr. trump is making a statement. he has a right to make a statement. i don't think this is going to be a factor in the race. i did kelly want to come back to another point though, the wall street journal is a fine poll and nationally they show cruz with a small lead. all of the other polls, cbs, cnn, roiters, all showing trump
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nationally with a huge lead and most important is john harwood mentioned, trump has a big lead in south carolina, bloomberg just put out a poll showing how big his lead it across all demographics, the holy father notwithstanding, donald trump is going into the south carolina primary as the prohibited favorite. if he wins by anything close to these margins, he's going to be in a commanding position. >> i've got a couple of questions on that, but first, your old boss ronald reagan was referred to as the teflon president. i know the pope sort of started this but anything that could help donald trump in this campaign as you point out, a lot of scrimmages with a lot of people but nothing seems to hurt him in the polls. >> the votes will tell, i don't know. the thing that troubles me about this bill is when i left new
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hampshire for the primary up there, mr. trump and bush and kasich all had positive optimistic economic growth messages. because of these cat fights, which is mostly around second place, but mr. trump has gotten involved in it. i think they are all off message. i don't hear a positive message or optimistic message and that troubles me because republican party has got to stay on message. so we've kind of lost all of that in the midst of this cat fight, which i think is to some extent rather unseemly. >> let me just read you the quote from pope francis, a person who thinks only about building walls wherever they may be and not building bridges is not christian. this is not in the gospel. what kind of impact is that going to have, do you think, on catholic voters who might support trump on immigration, on people broadly, if this message resonates with them a little bit
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or do you think instead of being absorbed, people will take umbrage to these comments. >> i don't know i'm an expert on this subject. i will tell you as a practicing catholic who's very involved in the church, i'm sorry the pope didn't call me but he must have forgotten to. i've got to tell you, i don't think it's going to have any impact whatsoever. this is an outspoken pope. g god bless him. i rather he help me save my soul than pontiff indicate on these other things, i don't think it's going to be any impact at all. >> all right, last question, you nailed new hampshire when you -- you know where i'm going here, when you called kasich second behind trump. who gets seconds this time around in south carolina? bearing in mind that nikki haley already endorsed marco rubio. >> i've got to tell you, i had a stronger feeler when you asked me this question before new
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hampshire. i just think there's a real fight for second place and that's why these cat fights are going on. and it's hard for me to know. i think cruz is in position. i think rubio is in position. jeb bush may be in position. i don't trust the polls. but once again, let me make this point, the reason i chose kasich and i had bush third -- >> lost by 100. >> in new hampshire, these guys and clearly mr. trump were putting forth a positive economic growth message and not doing it now. it's hard to see who's going to cat fight to second place. i don't know. just to throw it out, i'll say rubio. but i'm not sure i even believe my own forecast. >> we'll see. >> always proud to call you a colleague, thrilled we can do that for a lot longer now too larry. >> thank i very much. >> time for a cnbc news update
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with sharon epperson. >> the white house says president obama will move promptly in picking his supreme court nominee. the president has begun to work with senior team members on who should replace the late scalia. california officials say a natural gas well blowout that drove thousands of los angeles families from their homes for months, has been permanently sealed. the 60-year-old southern california gas company well was plugged with cement and several tested shows no more gas was leaking. crews are battling a massive grass fire on the kansas missouri border. the fire broke out at 10:00 a.m. this morning and so far scorched several acres of land. a fast growing tumble weed has taken over a rural australia town covering properties and gardens and garages. the dry conditions have worsened the situation. residents suspect it is coming from a nearby field that a farmer has failed to maintain. that's a cnbc news update at
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this hour. >> holy cow. look at that. >> that looks like a sci-fi movie from the 1950s or something. unbelievable. >> wow. thank you, sharon. >> looks like a guy apt cotton ball you're walking through. >> tumble weeds blowing through the exchange and the dow is down 37 points and s&p down about 9 and nasdaq down almost 1%. >> a leading trader will tell you what he's watching. >> and will recent gains in crude oil prices evaporate as quickly as they came. we'll discuss that with a top oil analyst. stay tuned. need to hire fast?
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there's less than half a an hour to go in the trading session. what's going on today? >> it's a really interesting day. we're seeing -- it's a safety day, going into treasuries and into utilities and into gold but not taking it out of equities. if you give me 120 points over three and a half days and only want seven or eight back, you
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can have those seven or eight. >> where do we go from here? >> fundamentally, if they are not taking money out of they are revenue plays and growth plays, generally they are coveted but they are protecting themselves so you have to do it. >> what names are you wanting to know whether that constructive environment persists here? >> you can go back and watch your fangs to see if the high money players are still doing that? i'm a much more down to earth guy. i got involved in the oil sector next week. it's been a good play every time i tried it it's worked. >> any particular place there? is this a bet that crude oil prices are going higher? >> i think the risk reward ratio is better to the upside but we can lose here. even if we lose here, if you stick to the guys who haven't cut dividends yet, they have to pay you a couple of times a year. >> crude prices have to move higher to continue to rally? >> not at all. the correlation is overblown.
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you saw tuesday and equities might be leading oil today. might be a different play than we've seen all along. >> thank you, let you get back to it. >> you're welcome. >> let's talk about oil, it's pairing early gains after following iran's lead did not commit to actually slowing down production to help falling oil prices as the department of energy reports inconvenieventor across the progress. mike witmer, i know you are among those skeptical but how significant that they are even talking about it fpublicly? >> the most significant thing out of all of this are not a freeze that doesn't look like it's going to happen but number one the saudis and russia and even indirectly iran. they are talking to each other so you now have the beginning of a process and beginning of a conversation.
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and point two, perhaps a few months down the road, after iran has sort of finished ramping up with sanctions being lifted, once they get to a certain level, they might be willing to have that conversation. the issue then changes to something else, not just iran but the bigger one is if you hypothetically do have a cut, then u.s. production is not going to decline this year. then we top out and it's sort of you put a ceiling on the market because it's going to be counter productive. >> if the price goes up as they hope, then the incentive to stop production goes away and u.s. production can pick up again. >> exactly, it goes back to the bigger question, puts the ball back not in iran's court but saudi's court. are they going to let this play out of the way? it needs to if you're sitting in assault and battery saudi arabia.
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>> describe how that fundamen l fundamentally puts any bottom here? >> for those with short positions it's going to make them think twice about remaining in such a position. there's an element of uncertainty now. but the real thing of it is, it doesn't change anything, people expected the saudis and russians to have flat output this year. >> why should we view there has been a floor for at least supply and demand reasons put in here in terms of oil price? >> because you know, in this 25-35 dollar range we've been in for the last few weeks, we're already way below fundamental, a big part of this has been first risk aversion driven by china and emerging markets. we've now concerns about the u.s. and economy in general. >> what's the fundamental price then? >> when we were back at 40, before december, that was a fundamentally -- >> right now supply and demand
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would suggest $40, all things being equal. >> more than supply and demand in stocks but the cost for most u.s. shale production and u.s. shale is the main mover is 45 to 50 bucks. 40 makes sense. that price would see the response. >> your forecast is for wti and brent to be between 48 and $50 by the end of the year. >> that's right. >> what's going to move that? >> what's going to do that, we think, even though we've hardly seen a response so far, it's been too small to make a difference, we think it gathers momentum and the second half the global stock builds will be smaller and oecd stocks will be balanced an markets will say, light at the end of the tunnel, we can see the process working. >> thank you, mike. >> thanks a lot. whi mike wittner. between stocks and oils, stocks
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are in the red today. the dow is the outperformer and ibm helping that to be the case. still ahead, the fcc voting to open up the cable box in your home, a former fcc commissioner joins us to explain what's next for consumers and for the cable industry. >> the controversial currency bit coin found a new use this week, it was part of a ransom deal in the case involving a los angeles hospital. that story is next.
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- the light bulb, a bright idea if you use the right ones. led bulbs use 85% less energy and last a long time, saving you up to $100 over their lifetime. here's an idea: replace yours today. [light instrumental music] sounds like the plot of a big budget movie, an fbi investigation and high tech hacking and ransom payoffs but this is no popcorn thriller, it's a 21st century crime featuring niflt generation threats and payoffs as well. >> joining us now with these extraordinary details, bertha coombs. tell us about this one. >> this is kind of the way the cyber mob works in this era, a southern california hospital says it had no choice but to pay ransom demands after its commuter system was taken hostage. hollywood presbyterian has been
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paralyzed by stockers since february 5th, there's no information that patient information was compromised but they had to use paper files and send people elsewhere because they couldn't operate. the hospital said it paid off the unknown hacker 40 bitcoins estimated to have a value of $17,000. one of biggest we've heard in a case like this, saying it was the quickest way to get its systems back. most of the victims don't admit it but security experts say increasingly companies pay. >> there's the hard liners who say you never negotiate with criminals and you've got to stand up for yourself but unfortunately the people attacked by ransomware are left without leverage. we don't have a choice but to pay the ransom to get the data back. >> the best and only protection really is prevention. we've already seen at least a dozen health care breaches this year. health care companies are required to rosht them to the
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department of health and human services, they have to report the ones that involve more than 500 people. more than half of them last year involved theft or hacking, the biggest one you'll remember is anthem, when its systems were hacked and 80 million people's data was exposed. >> in that case, there was no r ransom involved. >> this is a situation where you get bad actors and often outside of the u.s. and other countries in jr. dids where we can't necessarily reach them. they ask for the ransom in b bitcoin because it's untraceable shlgs and difficult process to find bad actors and for a lot of companies when they get shut down like this they just pay. most don't admit it. >> another honorable use for bitcoin. >> right, yeah. >> by the way, did they draw anything significant from that, the fact it was bitcoin that was
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being demanded here? >> the suspicion is that these are people outside of the country but there could be other copycats doing this. some folks say it's just set such a bad precedent because people know in this case crime pays. in some cases these big operations may be netting something like $100,000 a month worldwide ransomware. >> thank you, bertha. >> makes me uncomfortable on so many levels. >> yes, absolutely. 12 minutes to go and we're moving lower. the dow is down 50 points. >> art cashin said after a day like today, what would you think would be the closing here? >> i don't actually know. it's paired off. it's neither buy nor sell but we're down 52 points as we head towards the close. one year ago the average price of gasoline nationally, $2.26, today the cost is 25 cents below that and it may decline even
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more. our next guest says this could still be a big boom to the u.s. economy and the consumer and he'll talk to us when we come back.
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joining us, our friend, ceo, asset management. clearly we've established the drop in the price of oil is not good for many industries and the stock market wavers with the price of oil. you still pound the table this is good for the economy overall and consumer. >> we forget the united states is a closed economy, 90% of our gross national product, gross domestic product is from federal and consumer spending, china, not relevant to us. what we export, not relevant. you want 4% gdp, yes, but not for 2.5 or 3 sfl we want 4. >> i would love 4. you're not going to get it. low interest rate environment for the foreseeable future and low growth environment, but you don't get a recession when you have wages increasing when you're near full employment, the fed is accommodativaccommodativ
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recession talk is way overblown. you're looking at the situation where the headlines have put so much pressure on the sentment. >> cnbc did an analysis of credit card payments earlier this week and found that during that two-year period when oil was collapsing, a good portion of. >> marius: -- money was going to restaurants. is that what we're doing with the money? we talk about the benefit to the consumer, if we're eating out more, is that really -- >> here's what i do, strip out gasoline from consume spending and look tr underbelly, the numbers of great. big ticket items, home purchases and electronics and food are not that bad. there's a sentiment that things are terrible. as gasoline fell, what we spend on gasoline, consumer numbers artificially suppressed yet january was a good number.
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the consumer is not given credit. >> you have to be selective when you're going into the consumer place because there is disruption going on. who are you picking here not to put too fine a point on it? >> i don't like fixed income market worries me, 10-year worries me. be careful of fixed income. small cap and mid cap, they need uplift in the economy. without them you don't get strength there. go to large caps and consumer discretionary. look at the earnings cycle. >> all of them? >> i like costco and home depot into the spring and underarmour and starbucks, where people are spending money. look at earnings for the fourth quarter were really good in the sector and got pounded, so far it's cheaper than the s&p and valuations are not that big. >> thank you for joining us. >> appreciate it. >> we're coming back with a closing countdown. see how we trade out on this thursday. >> second thursday, then ast
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in the trading session on a day with very little volatility. bob pisani is here as well. the trading range was about 110 points, not much movement. we opened higher, we're closing lower down 41 points. let me show you for the week though the trading week when you compare the dow with the price of oil. you're getting -- you're not getting a real sense of the correlation that exists. what we did on tuesday see that break away where oil continued higher but stocks were going lower here. i don't know whether we're learning anything. it was a one day event it turned out and now we don't know -- let me show you the earnings coming out tonight, nordstrom is reporting and applied materials among others -- >> boston beer. >> down 2.3% today. >> i'm very happy about today because the market is down. you need these kinds of flat to slightly down days to console
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date the gains we've had. there's been so much damage. you don't want it to go down either, sideways is the best you can ask for and this is what we're getting today. kind of boring, lower volume days, to console date the recent gains. one thing that's interesting, take a look at these big exploration production names, did he have ven surprised everybody by announcing a big secondary and not only announced the secondary but upsized the secondary, people wanted to buy it, lower price than yesterday but it was deemed relatively successful because the demand was there. >> yes. >> notice that all of the enp names were down despite the fact it was deemed to be relatively successful because how many more secondariries can you put out there. first out the door. good news for them, lots of liquidity and cut the dividend, makes it tougher for others to raise shares and you're going to see more in the future. >> we're holding right now, some
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support levels of many traders were keeping an eye on 1915, 1912 as we go out on what was essentially a side ways market day. bob, thank you very much. stay tuned we have a lot more earnings and former new york police commissioner ray kelly weighs in on the fbi versus apple. on the second hour of "the closing bell" with kelly evans. >> thank you. i'm kelly evans, after three days of strong gains across wall street we couldn't hold on to that pace today. finishing lower across the board. nasdaq down more than 1% giving up 46 points, the broad market, s&p 500 down half a percent to 1917. the dow is the outperformer today and gave up a quarter percent, 41 points at the close, 16,412, the outperformer of the dell, coming from a name we haven't said this about in some
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time, ibm having a strong session on the flip side of that was walmart. joining me to talk about the panel as earnings are coming up, mike santoli joins us with along with stephanie. tim seymour is also here to bat things around. mike, first to you. is in just a pause, consolidation? >> you want to hope it's just a pause. the market came into today running very hot. s&p 500 up 110 points in three and a half days. gave back nine of that. that's not that big of a deal. vix going below 22. it shows you people have settle out a little bit. couple of things that stuck out beyond ibm, fang stocks really weak and people took the opportunity to say this is a sell rallies environment for banks. but overall you hope it's really just kind of a pause, side ways type move into maybe options exploration tomorrow and see where that leaves us. i don't think this rally has
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changed anybody's mind, bull or bearish, everyone is watching to see if we can advance more or if this was a real flash in the pan. >> there was the jobless claims data, if you had to take one indicator to a desert island, this might be the one. it was better and showed a better economy but does that feed through as a positive impulse or negative? >> i certainly want to see if this number continued to be very strong. i want the data to get better. i think good news would be good news. the reason we took a pause today, we got such mixed messages from the fed yesterday and got mixed messages from opec and production and confused some people plus we had a nice rally. it's sell the rally mode, i don't think it's done. >> for the banks i was saying. >>? general it's okay. >> the market in general has been sell those rallies. and today for sure. it will be interesting to see the consumer stocks, we'll start getting a whole bunch of earnings in the next couple of days and those expectations are so low.
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if we get economic data and decent consumer that could fuel the next -- >> a couple of names we're waiting for nordstrom's and boston beer. in a space that struggled at least nordstrom's last time around. real quick, oil, is it still calling the shots here? what do you think is going on? >> i think it is. i think oil is a dog and has pushed central banks around. you probably chase that rally if that's what we're calling this if you believe oil has bottomed. today's pull back you can make an argument brent touched up to 36 before pulling back. i think the day is something it has to successfully hold and move forward. the turn in oil isn't going to happen overnight. driving oil price and supply elements of whether there will be a freeze and whether the production in the u.s. will be as resilient as it has been, i don't think we're going to solve
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those things. i would say if you want to be owning oil companies with great balance sheets, you should be doing that here. >> okay. mike, meantime, speaking of people looking for value. some of the hated names are outperforming this market. what's the significance of this. >> the upgrade on ibm shows you people think they are going to get rewarded. going into this year, some of the global cyclicals that had the wall street kind of surrender on them. i looked at a basket of those i had highlight, november 30th, 17 stocks that basically had almost nobody recommending them on the street and also were down at least 10%. they've outperformed both since november 30th and year to date. you've seen that. a lot of people are complaining about that and saying short covering rally? what are a couple of examples? >> fastenal and john deere. not everyone has won. there's been consumer names like
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whole foods not cooperated. but on the whole, you've got paid so far for playing that reversal trade. >> stephanie, are you guys doing the same kind of thing here? >> it's definitely caught the growth to value kind of trade for sure. it's industrials and energy, kind of spotty technology. those are areas where there's real value, the big question to me, can we move materially higher when the lag ards are the leaders and that could happen, it's happened before, but i think we have to kind of see a couple of different of pieces of evidence to get confident that this can continue and it's not just a bounce. >> what were you going to say? >> what if they are transports and were overly beaten up. ups is such a fantastic well run company and we know what the pressures are on the business. some of the pressure is really related to the growth of their business. mike's list is very interesting, to me those are four
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fantastically well run companies, cummings is one of the best industrial engine companies in the world. we know the quality of exxon and john deere and what the problem is with john deere's business. but again, to reinforce what's being said here, this isn't just a short coming rally, but value buying, correlations have been breaking down. i think the extremism of the last six weeks is something that thankfully is starting to fade. >> where does walmart fit? >> walmart was one of the stocks on that list and has outperformed a good deal sense, up 8% year to date. clearly it was a defensive one but one that people had given up on a fundamental basis. i don't know where today's report places the stock. i think maybe one way to look at things, the first half of last year was about the indexes holding up and going to highs while you had lots of the parts of the market falling away quietly. >> we talked about how it was only the big four or five. >> maybe you can have the reverse, not doing much of
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anything, churning lower and pockets of strength from within. i don't know but that could be the case. >> it's kind of interesting, walmart, everybody initially sold the news and only ended down 3%. the stock is up 15% since november's lows. so it has held up remarkably well. you get a 3% dividend yield and a company that's trying to turn itself around. it's a dinosaur trying not to become a dinosaur. i think you've got to -- it kind of reminds me -- >> a chicken? >> reminds me of mcdonald's back in the '90s. >> that's the hope. >> don't put all of your eggs in this basket per se. some of the industrials, there's an industrial conference going on and nobody is saying things have fallen off a cliff or gotten better. to tim's point, the volumes are what they are and we're dealing with it. let's look at kroger shares. what's happening with walmart today as we debate the consumer and trends in the economy.
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one of the reasons there was a sell-off in walmart, talking about food deplags, compressing their profit margins. the more the prices move up on the whole sale level the more they can sneak in more profit margin on the retail level. the open is happening. kroger actually gave up more today than walmart, closed down 3% and a half. >> i would be buying kroger on this weakness. they are eating walmart's lunch in the same part of the business they stumbled all over themselves. it's interesting, a company so beaten up, huge run into the numbers, walmart' problems are still structural. i don't think they turn them around overnight. i'm more on the constructive side of what walmart is doing over the last two to three quarter. kroger to me is a company that's lean and mean. this is an interesting valuation even for this company, i would buy weakness. >> anything you would adhere? we're talking about if this is the beginning of a more drawn out theme and perhaps it's just
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a blip but shares are reacting this could be a head dsz wind. reminds me of margin compression with the financials. >> it could be but there are going to be companies that can handle it better than others. costco can handle it better because they are getting the traffic. walmart of.7% growth in traffic trends, fifth quarter with good traffic trends. it's just that people aren't buying, maybe it's a merchandise issue and mix issue. companies will handle it better than others for sure. >> it seems comparisons to this drought driven inflation in meat, poultry, eggs from california. going back to that, doing kmar sons against that, i don't noel we want to extrapolate this. >> too far into the future, fair enough. >> the effect of the oil price decline here is one of the things people are still working their way through. we talk about the oil price, people are still debating whether or not we put in lows here. if we have -- i know you mentioned this earlier as well, the news coming out of opec, if
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they can't kind of hold to these supply freezes or even cuts, does that mean renewed pressure to the downside? >> no. again, my core view here is that the russians and saudis have at least blinked. the nature of the meeting and the fact you're not going to get four major oil super powers around the world, u.s. and middle east and saudi and russia, controlling the nonopec and iran, southern iraq, that block. i don't think you're going to get them all to act in the same direction but the fact you've got a handful of these players -- and the u.s. have a very fragmented oil market. the other three have the ability to come together more. no matter what, we've taken so much products offline it's clear the oil market is tightening. >> seema has results. >> it doesn't look like a great quarter for nordstrom's, falling after hours, missing earnings estimates, $1.17 adjusted versus
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the $1.22 estimate. revenue below expectations at $4.19 billion. analysts were expected 4.22 billion. full year earnings guidance also well below estimates at 3.10 positive $3.35. sales up 1% versus the estimate of .6%. slightly better on the comp sales front. the company saying in response to the current sales trends, nordstrom has made adjustments to the operating plan which includes a reduction in expenses and capital investments. overall a disappointing report and that's why you're looking at the stock down 7.5% afterhours. the department store space has been a tough space to say the least over the past one year. down 30% and macy's too down a similar amount. >> thank you. is it too strong a question to ask what the heck happened?
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this company currently trading at 48. >> i think there are two areas in retail you don't want to be, department stores and high end for the time being. i think the benefit from lower oil and gasoline prices will help the dollar stores and also this department store problem will help the offprice guys. so you have to be selective. i don't think -- let's see what they have to say on call and what not. i think this is company specific and as well as kind of an area in retail which is really having a lot of struggles. >> fair. >> obviously, the market keeps wanting to feel it's priced in. it hasn't quite gotten there. the comps didn't fall off the cliff. on the call you'll wand to hear about nordstrom rack. >> the comps up 1%. that beat the estimate.
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it's just that they are not getting the umph behind that. it's not like this was a company trading at 83 two years ago, just a couple of months ago before the missed last quarter sent shares down. >> we're talking about people at least looking for constructive value out there. stock trades at 14 times and right in line with its historical. the same store sales trends are side ways. being rack is interesting, they are best of breed in this area. it's more interesting than the offprice channel because it's more defensive but not as diversified and the company is not cheap. it went 15% in these numbers higher. if you think about the move, it was due to probably pull back unless they knocked it higher. i don't think you sell it down here but it's not worth buying this weakness either. >> so the margins looking through the details, margins looked disappointing and clearly there's competition at this high
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end. rack had same store sales of 3.6%. to the point of offprice retailers benefitting, this is a nice confirmation of that trend. >> they have the play that everyone would seem to want in this environment. that's why it really had that runup. thank you for joining us, we'll let you go. there's more coming up 5:00 p.m., talking about crude oil doing something it hasn't done since 1950 and could mean the end of low oil prices. what it means for your portfolio top of next hour. >> approving cable set box top competition, former commissioner robert mcdowell tells us whether this is really a win and how much it could hurt the cable industry. >> it's the pontiff versus the donald. pope francis suggesting trump's idea to build a wall between u.s. and mexico is not very
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christian. former new york city police commissioner ray kelly joins us for his take on the privacy versus security fight between apple and the fbi. you're watching cnbc, first in business worldwide. thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road. the all-new glc. the suv the world has been waiting for. starting at $38,950.
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man 1: he just got fired. man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried?
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man 1: you are the ceo. it's not just security. it's defense. bae systems.
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we have more earnings to get here, applied materials. >> earnings of 26 cents adjusted versus the 25 cent estimate. revenue topping expectations at $2.26 billion. the guidance also looks good, higher than analysts consensus, ceo and press release saying we see strong demand for a semiconductor display and business services and street likes what the company reported. stock up better than 7% after hours. >> nice pump there. future of media is the big topic out in california. julia borsten joins us with more. >> reporter: hi, kelly, the big question, how to best capture subscription and advertising dollars in light of the rising alternatives to traditional television. we spoke to e sext pn president who is not concerned about the
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health of television bundle saying that i have seen a recent uptick in subscribers as the package makes gains as well as the fact that their dlks parters such as comcast and other carriers are month aggressively marketing packages that feature espn. >> i do not think in three years you will see a significant over the top shift of our content away from the pay television bundle, but again, we'll watch the market and we'll watch consumer trends and how fans are consuming things and react to it. >> skipper says they are already offering some content that you won't find on espn such as cricket over the top. they are looking for more opportunities, meanwhile, digital media mogul shane smith is betting big on traditional television, launching a new network called viceland in a couple of weeks because television is still where the
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money is. >> scale is going to come from mobile, everybody knows that. we're not stupid. mobile is a big thing, we're making a lot of mobile deals. money will come from tv because again, it's not a secret that mobile much like online was back in the day, a lot of scale, not a lot of cash. 75% of the world's advertising budget is still in tv. >> reporter: both smith and skipper agree it's not just about one single platform, not just about tv or mobile but the key is being everywhere that their consumers are. >> tv everywhere, even vice. thank you, julia. from cord cutting to cord shifting, voting to move forward with a proposal to allow you to buy a set top box of your own choosing such as comcast, our parent. it's great news for companies offering alternative ways to get
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content. joining us with more, robert mcdowell, former commissioner of the fcc and senior adviser at bear ren son and company. great to have you with us. did this surprise you? >> not at all. chairman wheeler signaled this months ago that he was going to go forward with this proposal, it does the not surprise me they are going in this direction. >> you think it's the right thing to do? >> no, i don't. i think it's a case of old generals fighting the last war. when i was at the fcc i looked at this issue a couple of times and in 2010 voted for a very mild watered down version of some of the ideas that they are proposing today and they didn't work. as i understand the proposal, haven't read it yet, it will freeze in place the set top box. in the meantime the marketplace has moved beyond the cable set top box. if you go to the floor of the consumer electronics show that
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cnbc covers so well, thousands of devices and millions in the marketplace, it's more than just your phone. it's game being consoles and all sorts of mobile devices out there. folks are watching over the top video there. the days of the set top box hard wired in your family room are numbered anyway thanks to market forces. >> if those market forces are having an effect, is there anything the fcc needs to do to promote that shift or to steer it in a certain direction? >> first of awe, an order i voted in part for in 2010 and it didn't work, 1996, almost exactly a year ago, february 8 t, 1996, congress passed a law about this and it is -- hadn't worked the way the government planners thought it would work and instead the marketplace moved past it. one of the dangers are might be proposing is mandating technical standards, this is complex stuff. we're living in an app driven
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world. apps are driving video consumption as is mobility. and what this does, it makes you stay put in one place. meanwhile give companies like google, which is a great american success story, giving google consumer data without privacy protections that cable companies have to operate under and giving them unbundled video content and that is going to be very disruptive in a bad way to minority content producers as well as niche content producers in specialty areas. i think the fcc can be venturing in the land of unintended consequences if they are not careful. >> robert, how long do you think it's going to take for ott to really to take shape? we hear from different people just like just the espn person that said it's going to be three years, maybe even longer for it really to take fold. how long is this going to take to gain penetration?
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>> first of all, if you look at outfits like comscore, tens and billions of downloads a month. it is already taking root. they were talking about ad dollars and 75% of ad dollars are still in tv, think of tens and billions in internet ad search, google ad search, i'm not sure if he's including those dollars in that figure. so it's already here. over the top is already here. it's mobile and i have three kids, 16-year-old and 14-year-old and 8-year-old, all of their video consumption is on a mobile platform and over the top. >> clarify why this would be freezing in place the cable set top box? >>s it all about the set top box. it's all about capturing that as the state of the art and that's going to be the state of the art 20 years from now and what we'll do is start unbundling different aspects of it to competitors rather than letting them marketplace threaten the cable
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companies and have competition out in the marketplace, which is the best way to solve this problem. >> thanks for joining us. >> thanks for having me. >> not just jeb bush and ted cruz speaking out against donald trump, pope francis has words for the candidates. the details are next. when it comes to law enforcement getting data on iphones, former commissioner ray kelly is here exclusively coming up on "the closing bell." m verny retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com.
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pope francis take being aim at republican candidate donald trump saying quote, a person who thinks only about building walls and not of building bridges is not christian. donald trump responding to the comments earlier today. for a religious leader to question a person's faith is disgraceful. i'm proud to be a christian. as president i will not allow christianity to be consistently attacked and weakened unlike what is happening now. >> with us now for more is kathleen cummings, an associate professor and center for american catholicism. we would love to know -- thank you for joining us. what did you think about the remarks from pope francis today. >> i have to be careful what i say in my catholic history class this morning, i said it was
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interesting catholicism hasn't factored into the presidential election so far and i left class and heard this news. it's an interesting moment when the conversation about what it means tore catholic or christian in this country, particularly for public figures it's a turning point in the campaign in terms of that conversation. >> the beginning part of his answer to this question from reuters reporter on the plane, he -- the pope talks about how the human person is a quote, animal plit cus, doesn't shy from political issues, i guess we should say. what's interesting about this answer, it does seem pretty narrow and pretty specific to the person of donald trump and this wall on the mexican border. there is a proliferation of walls across eastern europe at the moment. do you think what he's trying to say to make a point more broadly here or not? >> i take a bit of a different view on the extent to which he
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was engaging donald trump. he was asked a question to him was hypothetical, the comments were reported to him and he said, well, if someone said that, that's not a christian position. and he didn't name trump and he also said he would be willing to give this politician the benefit of the doubt. which is a very pope francis trait among him. i think it was donald trump that characteristically escalated the debate and try to engage with pope francis on that. that's not what pope francis did. >> i wonder what it means that donald trump saw this as an opportunity. he sees a lot of opportunities about various things but clearly feels as if there's not a lot of risk in terms of taking adverse sarial stance to a very popular pope. >> exactly. by responding with his strong statements, i wonder if this is the moment when donald trump has gone too far. this is a pope who's got -- not
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only popular but has a significant amount of moral credibility in the united states with catholics and noncatholics as well, taking pope francis on i'm not sure is the wisest strategy. >> by the way, he touched on a number of other hot button issues talking about contraceptive use to prevent spreading zika. what do you think the impact is going to be on the catholic community? >> i know what pope francis would hope, that is that catholics in the united states think very seriously about what it means to be christian and catholic and what it means in this particular context. the pope as he said later in the interview is for everyone. and doesn't get involved in the internal politics of a country. italy, the united states or any country. but he calls on catholics wherever they are to get involved in those politics. humans are political animals. >> exactly. just before we let you go, can you remember the last time there was a pointed exchange between
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the pope and any political figure? >> no, popes as pope francis says, popes or for everyone and do their best not to get involved in internal politics. this was an instance he doesn't intend to get involved in politics it's donald trump that's trying to get him to engage. >> thank you for joining us. >> cam kathleen cummings from notre dame. sharon? >> here's what's happening at this hour. president obama signing into law legislation broadening sanctions to punish north korea for ilgts nuclear program. human rights record and cyber crimes, pyongyang fired a rocket into space earlier this month. the fbi raided the office of a north texas company that financed more than $1 billion in residential development across the state. some say the company operates as a ponzi scheme, seen carrying out boxes and loading them on
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trucks. ted cruz speaking at a republican's women's club says there's a new front-runner for the nomination and commenting on an nbc/wall street journal poll released yesterday that had his two points ahead of donald trump nationally. the federal judge rejected a plea deal in the rape case against sharper, saying it doesn't reflect the seriousness of the alleged results. the judge gave sharper and his lawyers to march 3rd to decide whether to withdraw the plea he entered. we'll heard from the head of ge's energy business and first though former new york commissioner ray kelly weighing in exclusively on apple's controversial decision not to help with the fbi unlock the iphone of one of san bernardino shooters. opportunities aren't always obvious.
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♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. welcome back, time for market rapid recap. today stocks snapping a three-day winning streak, closing down 40 points, but the
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major averages are up 3% this week. it came down to a tale of two stocks, walmart a big drag after reporting weaker than expected quarterly sales and cutting the revenue forecast, closed down 3%. ibm surging after morgan stanley upgraded the stock and hiked the price target up by five bucks. ibm's transformation into a cloud business is under appreciated and those shares were higher by 5%. nordstrom sinking after hours after they missed wall street's quarterly profit and revenue forecast and weak full year guidance, shares trading down 7%. tim cook gain being some support from silicon valley for refusing to unlock the iphone of one of the san bernardino shooters. earlier today, apple co-founder, steve wozniak gave us his take.
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>> i don't think that the phone should have back doors. i believe apple's brand recognition and value in profits is largely based on an item called trust and trust means you believe somebody. you believe you're buying a phone with encryption and shouldn't have hidden back doors. >> well, here in a cnbc exclusive with his reaction is ray kelly. welcome and good to see you. >> good to be with you. >> is apple doing the right thing here? >> well, we all want privacy. i want privacy. but i think in this matter, the end of the day, you have to come down on the side of government, our system of laws depends on judges issuing warrants, that sort of thing. i'm surprised this wasn't done sort of in camera, confidentially, i don't know why they did it in such a public fashion. it could have been done. apple would have owned the whole process. i believe could have prevented
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any hacking from taking place in getting that information. so for some reason tim cook and apple wanted to raise the profile of this matter and that's where we are now. it's complex, not an easy case -- >> did you confront this issue at all during your tenure? >> it was starting to develop obviously, it's as you get the iphone 5, iphone 6, 6s it gets more and more complex. >> exactly. >> apple's concern and stated issue is that it would create a precedent and perhaps make this a regular thing where the company becomes kind of an instrument of government or prosecutors. is there a need for some kind of policy that can address this somehow, is there a way to see how that can work? >> absolutely, there is a need pore policy, but you won't see it coming out of congress any time soon. what we need is really smart people from the silicon valley to come together and work out some compromise. it's only going to get more complex and more demanding and more difficult for government to
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operate. we're all concerned about our safety in this age of terrorism. >> can the government do this piecemeal. be effective or does there have to be a mass law. >>y think it can be, this sort of the way it's been done. tim cook came out and said, 70 instances they helped the federal government get information from phones but i think at least in this matter, it could have been done piecemeal. we weren't asking for much. it was just for this phone. and it was basically to sort of eliminate a process inside the phone. is it complicated? yes, obviously it is. >> apple's argument, if we bimt software that would allow us in this particular phone, that software code will get out there and used by nef air yus actors, either state or private to access information of people that they should be able to keep private. >> i don't know why it gets out there. apple was controlling
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everything. the bat, ball, glove here. it had all of the information but they were saying, it's going to go public if we do this. i don't get the connectivity, but that's what tim cook said. >> what are the parallels, in some ways, i'm trying to wrap my head around, is this a new issue or new face of a very old problem that we have existing ways of dealing with? what would be the analogies in your experience to previous examples of trying to get information that you have a right as law enforcement to access but you are literally just blocked? >> i think this is sort of unprecedented. i think it always was a way before encryption to sort of compel testimony or compel evidence. here obviously there's a gap. we don't know if the fbi is saying, we should be able to compel but that's not what apple is saying. this is sort of a new matter
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that has to be taken on. i would like to see it taken on by congress. i don't think it's going to happen any time soon for the third world. >> if you were commissioner again today, what just pragmatically speaking, you're confronted with a real issue, something that comes up in a ton of different kinds of cases when you want access to a phone and by law you have right but couldn't get into it. what would you do? what would be your way to deal with or approach this problem? >> district attorney today said they have 150 phones sitting in their offices they can't get in. there's no easy answer. you're in the process of collecting a lot of phones unfortunately with no easy solution. only going to be get more demanding on law enforcement. we have to have a meeting of the minds so far. doesn't seem it's going to happen any time soon but that's what we need. >> a new frontier for sure. thanks for joining us, you have a new book out called
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"vigilance." >> ge's innovative business current is aiming to help cut energy costs for corporations. late flights to missing bags, which airlines perform the best in 2015, according to the department of transportation's consumer report card. you're watching cnbc first in business worldwide. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪
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we begin with another earnings alert and seema joins us. >> trinity industries that specializes in rail car leasing, earnings meeting expectations but revenues a bit light at $1.55 billion. very weak full year 2016 earnings guidance, the company saying that its outlook for 2016 reflects the weakening in the industrial economy that began broadly impact our business last summer. another company, truecar, gives buyers information on what others had paid for cars, reporting a wider than expected loss in the fourth quarter and revenues disappointing at $64 million. guidance below expectations, the stock down better than 14% but this is a small cap with a market cap of less than $500 million. >> good point. thank you. at the top of the hour we saw energy company current powered by ge ring the closing bell. it's a startup within the walls
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of general electric working to sustain a more sustainable eco system. let's bring in mary rose sylvester. welcome to post nine. >> thank you. >> drum roll, please. seriously, what's going on here with you guys? >> we're excited about the big news today. we have announced a collaboration with jp morgan for the world's largest l.e.d. installation, on a journey for energy efficiency retrofit 5,000 branches nor energy efficiency moving to l.e.d. >> it's interesting, we as consumers are familiar -- i might be confusing lighting terms, you're the expert but these l.e.d. light bulbs are the new wave after the regulation that doesn't allow incan descent. are they slower to make the fast. >> no, corporate america has been faster. the return on investment is so powerful for corporate america, if you think about company like
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jp morgan, 50% of their lighting energy can be reduced by moving to l.e.d. that's very significant. most commercial buildings lighting accounts for 20 to 30% of building's energy envelope. >> my point is, i'm surprised they aren't already on l.e.d. by necessity or force. >> you think about they are flores sent. right now they are at this tipping point where the return orn investment is so powerful relighting 25 million square feet, 1.4 million light sources will be converted to l.e.d., a huge undertaking. they are going to reduce, 184,000 mega watts of energy from the grid. equivalent to 27,000 automobiles coming off the roads. what they are doing is very significant. >> so there's a lot of customers that you can cater this to. where do you envision the strongest end market coming in and deploying this kind of technology? >> that's a great question.
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current is focused on commercial industrial and cities, very powerful in retail spaces. you think about lighting very important to the retail environment and spend 30% of the energy cost is in lighting energy. retail is moving quickly, commercial banking coming up quickly. with l.e.d., energy efficiency and great quality of light. you put light exactly where you want it and reduce your glare. it's a great value. the other good thing about l.e.d., it's digital and you can put controls and sensors eventually in every light source to really enable a smart environment, drive more productivity, better energy efficiency beyond lighting and understand what's going in your environment. i think it's very powerful move for jp morgan. >> i'll pay more attention in the bank branch and see the difference. mary rose sylvester, ceo of current, which is powered by ge. up next, phil lebeau wraps up the latest airline report cards, which carriers got passing and
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failing grades from on-time flights to lost baggage. you might be surprised by some of the results.
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the transportation department releasing its latest air travel report cards. last year turned out to be a
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mixed year for fliers. hi, phil. >> overall it was a pretty good year for the service provided by the airlines. last year, no surprise, month after month, hawaiian number one on time. followed by alaska and delta. when you look at the numbers within the numbers, some impressive things happened last year. airlines did a better job of handling baggage, fewer complaints per 1,000 passengers. fewer people were bumped from flights in 2015 despite the fact we had more seats filled on most airplanes. overall ontime arrival percentage is the best since 2012. there is the bottom of the list. these were the three worst airlines in terms of on-time arrival rates last year. number one with just 69% of its flights on time, spirit. they were right behind frontier. and they were right behind envoy. when you look at spirit, the complaint rate was the highest in 2015 by a long shot.
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way above the rest of the industry. the top complaint at spirit, flight problems. they don't break that down from the d.o.t. as you look at the shares of the airline. we don't know what was wrong with the flights, but we talked a lot about the problems spirit's had in the last year. this chart says it all. you cannot see it more clearly than comparing spirit and hawaiian. >> they have a new ceo now, phil. we'll see what he does in terms of strategy. even though it might be coming back to bite them a little bit, they are challenging the rest of the industry to try to match their fares. >> they are challenging the rest of the industry. it's that aggressive growth that has caught the attention of the majors. they are fighting back with their own version of lower cost seats on most of their flights and the country. but at the end of the day, it's the aggressive growth. i think that's at the bulk of the complaints from the passengers in the last year.
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>> i think we all have to take a trip to hawaii with the panel. thank you, phil. appreciate it. >> you bet. >> phil lebeau with the airline report card this afternoon. we'll get a final check on the big earnings movers this hour. and misgm reporting weaker than expected results today. hear what jim muren has to say about china in particular. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car.
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welcome back. it's that time of earnings season we're starting to get more much the consumer names. nordstrom, let's check in on the shares moving considerably lower after hours. down about 7% still. the key question for a lot of guys, how much is there for the consumer broadly, or is this just nordstrom specific? >> it's department store specifically related to them. it seems like a big bulge in inventories, heavy discounting. this is a story we knew. i guess they just got trapped with a lot of extra inventory at the end of the quarter. not great in terms of execution. >> if we check on boston beer company, not like they hit it out of the park. their shares are holding up well
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after hours. >> they may have a blip here and there. consolation brands confirmed this trend will continue. people are enjoying their spirits and drinks a little bit more these days, i guess. >> talking about food deflation, tomorrow morning we're going to get the consumer price index report, mike. significant if that shows a healthier gain than we're used to. >> not much is expected. the core cpi is expected up 0.1%. so i do think you want to see if it changes the trend at all. i guess i don't really know what the market wants to see right here. you obviously want a little bit of pricing power in the system. but i don't think the market wants to see anything that lets the fed stay on plan for more rate increases right now. >> also, we have a reporting tomorrow morning, stephanie. >> it will give us the trends of the global demand, which is not going to be great. especially in china, south america. let's see what they have to say about the farmer and income
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levels, and what they're doing here in the united states and how dhe lower the input costs. can they manage it all together. >> fair enough. lots to look forward to. thank you for both joining me. that does it for us on "closing bell." "fast money" begins right now. >> live from the nasdaq market site, overlooking new york city's times square. kim, dan, karen and guy. one of the hottest stocks in the dow took a tumble today. it could be serving up a major warning sign for the economy. we'll tell you what it is and what it could mean for the markets. plus, what was that? steve wozniak giving a strange interview. we'll see what he says that's got everybody talking. crude doing something it has not done since 1950. it could mean the end of the low oil prices. that's next. but first, we start off with the markets snapping the three-day winning streak. most interesting was the massive ll

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