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tv   Closing Bell  CNBC  April 12, 2016 3:00pm-5:01pm EDT

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as we have one hour left. >> 150 plus oil and gas stocks on my screens, none are down. they are all up. >> makes sense with where oil is today. >> thanks for watching "power lunch". >> "closing bell" begins right now. >> hi, welcome to "closing bell", i'm kelly evans. >> and i'm bill griffeth. oil above $42 a barrel on wti and energy is the top performing sector in the equity market as well. we're going to look what that means for the overall market coming up in a little bit. >> happening live in the next few minutes, paul ryan will look to shut down rumors he's considering a run for president. we'll bring you those comments live as soon as they begin. mark zuckerberg announces
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messenger for business. listen. >> today we're launching messenger platform. you can build bots for messenger. it's powered by artificial intelligence, build natural language services to communicate directly with people. >> if you're confused as i am, facebook's head of messaging will join us in an interview to explain it all, david marcus. let's get started with the market despite the rally, there are a few stocks seek being -- seeing major weakness. alcoa, you talked about that last night after unofficially kicking off earnings season yesterday. they had a miss on revenue. network gear maker juniper under pressure after lowering the guidance late yesterday as well. >> michael santoli joins us from the alcoa poster on the floor. what does this for tell for the broader earnings season?
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>> the big question is not just how bad but what's the guidance going to be and has the market taken a count of how rough the past three months were. we're expecting a loss of about 9% in terms of s&p 500 earnings per share and 121 s&p 500 companies delivered guidance for the first quarter and 78% of those guide downs versus guide ups. 78% were negative and that's above the five-year average of 74%. the big question, why the market stabilize then? if the second half of the year, just like in the second half of every single year, the expected earnings are going to pick up and actually return to growth in the third quarter. if you look at that, hockey stick effect rightthere, we're going to have a smaller loss in the current quarter leading to up 3.5% and 11% in the fourth quarter.
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is that what the market is sniffing out. has the stock market stabilized because it's saying this is the earnings trough and just a slowdown not the end of the profit cycle. if you look at sectors, the hardest hit sectors in terms of performance for first quarter, energy materials and financials and industrials all expected down between 9 and 20% in terms of results. three of those four groups are up year to date so the market seems to be trying to say maybe they've been overly discounted. i think that's going to remains to be seen. it will be noisy and there will be mine fields and alcoa and juniper told you that. in terms of companies that did deliver negative guidance, tech and consumer were the two big groups that were doing so. >> i guess because we heard so much negativity into the season you might have thought -- taken alcoa, that that one could overcome even revenue miss, be able to get its footing on a day
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when the oil outlook is brightening and maybe feel better about commodities and yet it is trading weekly. why do you think that is? >> i think that within the numbers, even though there was a nominal beat on bottom line there was really cautious comments about the outlook. i do think when you have a stock like alcoa, it was up 50% from february into april, you definitely had a lot of people saying maybe it's going to be an all clear signal. i don't think that means it has to be broadly the case. i feel like everyone is counting on the fact that u.s. dollar peaked in march of 2015. that should turn into a tailwind and these globals should be able to tell a somewhat better story. fastenal, a big fastener company, had a mixed report today too. trying to look on the bright side there. >> thanks very much. we'll see mike next hour on "closing bell." let's get to the exchange and talk about market action today. meg green from meg green and
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associates is back with us and we welcome back ben willis sitting next to me at post nine and rick santelli from chicago as well. up 180 points right now with oil also trading higher. is oil calling the shots again? >> this is a great example of the trigger in this marketplace. there's so much negative sentiment built into the marketplace. huge short interest in the spiders and you have the number out today, 11 consecutive weeks of selling and merrill lynch smart money -- >> a lot of tinder. oil rallying to the new highs based on a rumor that the saudi arabia and russians were going to limit production at record numbers. they weren't cutting anything. this was just we're going to stop at this level. that should not be a story. there's still a lot of risk money being put to work in the emerging markets. we're seeing net flows there and also seeing net flows continuing
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to go into the precious metals. that's all more on currency plays on what's going on around the world. this market i think is right now sitting on a ricochet action. >> meg you made a similar point how many of your investors are sitting in cash. why is that a bad idea here? >> not our investors i'm saying worldwide, over $11 trillion earning absolutely nothing. you have to take a little bit of risk to get a little reward. even if you just sit in the market and some good dividend paying stocks, you're getting two and three and four%, which is a far better cry. take a little volatility, that's okay but you don't want to be sitting in cash. we're always invested. if you're diversified and get back into the emerging markets and into some of the thenings tt have been down, buy low and sell high. you keep rebalancing your portfolios and keep going. cash is note your king today.
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>> and neither are treasuries, rick, we're seeing a backup there as well as equities go higher. what do you make what's going on today? >> well, you know, i think we have to look at the whole picture here, bill. let's put the fed in the soap opera, there's going to be no cliff hangers, not going to be doing anything for a while. in that context, it isn't the only the highest price of the year for i'll, but highest closing levels since november 25th. if we can show the chart and last significant high close of the year, wasn't that long ago, it was the 22nd of march. you see it there on the chart, 41.5. we're over 42. now you know where to put your stock. even if you believe it's a run in a bear market with oil, it's going to be a three-way pattern. why do i bring all that up? boone yields double in a week, maybe they bottom. this looks to be the highest yield since the 30th of march. all of that put together with the correlations based on
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trading with oil, i think it's kind of clear sailing for a while here, depending on earnings for equities and i think if that occurs in a decent fashion, you're going to see rates climb up a bit. remember, we're flirting with challenging the low yield close for the year at $166. now we're basically up at 180. be careful here. >> ben was talking about with the dollar, some of these moves in gold and other commodities too here. what do you glean from these latest wiggles? >> i think that we've reached this eye of the storm. our central bank probably will be active for a while. the political season i know pundits can write what they want, i don't think anyone has a handle how it will affect the market and in europe hope springs he eternal. i wouldn't bet my life's fortune they would be successful but the market will give a little slack
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on that. things are lining up in a light positive for the moment. we have retail sales tomorrow, march number i can't stress how important that is as well. >> ben, a little birdie told me the 2062 is a level you're watching on the s&p and we're above that at the moment. >> i just got great numbers. >> tweet tweet. but his numbers are spot on and i use his numbers to justify when i trade throughout the day. but we're above that. another indication that this market has room to run -- >> when is the last time the numbers you cited were that much on one side of the boat here? >> it goes back the short interest back to 2009, 2008, 2009 when we had a major bear market rally because of that large short interest and the high yield, the canary in the coal mine, seeing money flows into that. as oil rises the risk comes off and jp morgan was going to put
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these assets. >> we have to move along. trying to get ready for house speaker ryan's news conference in a few minutes as well. thank you all for joining us. >> facebook's annual conference kicking off today in san francisco. chat bots and virtual reality and facebook live were all hot topics, even greater area of focus was messaging. between facebook messaging and what's app, sending $60 billion messages daily. joining ugsz is david marcus, the vice president of messaging and julia borsten. julia? >> thanks so much. david, thanks for joining us fresh from the stage where you made big announcements about facebook messenger. you're unveiling new bot tools and partnering with 28 companies to allow companies to more easily communicate with people on messager platform. explain to me what are the future are chat bots and what does it mean for messenger's business. >> let me remind a little bit.
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nowadays when you interact with businesses, you interact in a variety of ways, you can download an app and send them e-mails and interact in a variety of ways. all of these ways of interacting with businesses are not perfect. downloading an app takes time and you need to sign up and push notifications and something we do less and less. mobile web is less than idea. we believe bringing it all together in one thread in messenger to have a rich interaction model -- people think of bots as limited conversational experience but this enables everyone to have buttons and images and interacts with businesses and services in a wide variety of ways, you'll receive your news inside messenger and weather forecast but also buy things, discover new experiences and interact with all of the brands and businesses you care about in a new much easier way. >> what makes you confident that
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companies are going to want to invest resources in putting things on messenger platform instead i have their own websites or apps? >> we have 900 million active on messenger, growing really fast. messenger last year was the fastest growing app in the u.s., there's reach. that's number one. we bring the power of having 50 million businesses on one side of the platform using facebook pages and other 900 million people i talked about. you have the great making of a new platform by enabling those two sides of the ecosystem to interact with one another, with brand-new tools that makes the life of people a lot easier every day. >> kelly, you want to jump in here? >> david, i'm think being a lot about slack. we seem to hear about it so much these days and started obviously with companies using and now you can get a chat bot to order you
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taco bell. how much have they leapt ahead into a space that you guys are now catching up with to some extent or would you define what you do very differently? >> i think first of all, just to put things in context, if you want to build those new interactions right now, the biggest platform globally is messenger. you have 900 million on the platform and so if you as a business want to reach almost every single one of your customers, this is the place to be. and then the second thing to add, other platforms have built very simplistic bot experiences that are just text based, question/answer type of interfaces. i don't know about you, but if there's a button with a word on it, i would rather tap on it than type the whole word. most what to interact with services that way except a few geeks, there's a lot of us here at this conference. better user experience with
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buttons and images -- i demoed an experience from the shopping site spring that enables you to navigate recommended cureated list of product by swiping through a lot of products. those are the types of experiences that people will resonate with and use every day. >> david, bill griffeth here, i'm a big facebook user, maybe too much of a facebook user. right now interact with my friends and relatives and my colleagues but that's about it. so i'm curious, just what -- five years down the road or maybe won't even take that long. two years, put this vision together for me and tell me how i'm going to use facebook down the road? is it going to cost me anything? >> so, no, it's not going to cost you anything unless you buy something from someone else than us that we facilitate. but the way we look at the world is that people spend most of their time today on smartphones
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messaging and since you're already using the product and its a natural conversational way, the way we're built as human beings, we like to have conversations. you can then interact with the brands and businesses you like, like recently we announced we opened the ability for airlines to actually interact with flyers on messenger and that will enable you to have your whole itinerary right there and when it's time for check-in, you get a notification and tap on a rich bubble and get your boarding pass right there. you can change flights without ever leaving the thread. what we believe, the future is going to be an amazing future where you're going to be able to have much simplified interactions with the products and brands you care about. >> you're offering these tools to developers for free, artificial intelligence for free. what's the future of how you'll make money from this? are you going to charge a fee to smeez developers or take a
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percentage cut from the retail sale snz. >> if you look at the history of facebook, traditionally we've enable the great interactions between the two sides of our network and businesses and people on the other side. and gradually then you can find new ways to monetize, we want to build great experiences for people into something really delightful in messenger. then we'll have ways to monetize, one of the things we're starting to do at a very small scale, enable some businesses to reengage existing customers with sponsored messages but doing it very carefully. because it is a private personal space and we want to make sure we maintain a very high quality xpefrns for everyone. >> you also mentioned you'll allow news field ads with different brands. what will we see it drive an
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increase in facebook's revenue? >> we're not in a hurry. mark said it time and time again, we first want to build great user experiences and get the platform to be at about a billion active users and we're almost there. then build montization gradually. to your point, news feed is potentially one of the best new customer acquisition platform in the world and so of course we'll use it to drive just awareness to enable people to find great bot experiences built on a messenger platform. we look forward to hearing more and trying them out ourselves. thank you so much for joining us. >> back over to you. >> david, thank you for joining us as well. any moment now we're waiting for house speaker paul ryan to go before the cameras to apparently definitively lay at rest any notion that he would accept the nomination, the republican
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nomination for president. john harwood joins us now. you started this whole thing, john, in your speak easy. you asked him about it and he wasn't quite as definitive and been paying for it ever since. >> that's true. right after he was somewhat ee quif cal when i talked to him, john boehner was giving a speech in florida and saying my candidate is paul ryan if we have a contested convention. he then came out and gave a press conference, i'm not running, i wouldn't accept the nomination. but that hasn't quelled the speculation. every time paul ryan as yesterday announced he's going to speak at a fundraiser, people say he's preparing for a campaign or he produces a video, promoting his agenda as speaker, people say that's a precampaign and aides decided this is too much of a distraction and they are going to try to knock it down. i've got to say, that considering that we haven't seen a multiballot convention in our
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lifetimes, if we actually get there, whatever he says today, all bets are off. >> in a way this seems like precisely the wrong move, it means you have national coverage across all networks of a short statement meant to dismiss the statement it will probably just fuel? >> it could have that effect. what his aides have told me, he's going to be extremely declare tif and definitive in saying won't take it, not involved with it. if we get to this chaotic convention situation, who knows what's going to happen. >> the other think working against him, he said the same thing about the speakership when that came up, right? >> every remembers that, he was a reluctant draftee and wanted to be the ways and means chairman and was the ways and means chairman. but then john boehner left and
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given the difficulty of leading that republican caucus, which you know, you take a look what's happened in the presidential race and you can see why it's so difficult to lead that republican caucus in the house. and his colleagues said, please do it. he's somebody with unique stat tour in that caucus. he was the vice presidential nominee in 2012. and he's somebody who is admired across the spectrum of republican politics and so it's pretty hard at a time when many republicans are despairing of their presidential race and don't like the top two candidates, they are naturally going to look to him it doesn't help him to look like he's positioning to get that nomination and so he's going to put it to rest today. we'll see how successful this time is. >> remind us how likely it now looks that we'll have some kind of outcome at the convention that involves several rounds of balloting, no clear front-runner and the opportunity for somebody like paul ryan to burst to the
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floor. >> it's all guesswork at this point. nobody knows, with that as the cave caveat, i would say it's not likely we get there. i think donald trump who has got a 30-point lead in new york and leads in pennsylvania and leads in maryland, the other big states coming up are sort of home cooking for him, home court advantage, i think the odds are still that donald trump will either get just over 1237, the delegates he needs or extremely close to it, close enough that he's going to get them when he gets to the convention. now there are many republicans as you know in part of this never trump movement, stop trump movement who say if he is one delegate short we're going to scrape and claw and fight to keep him from getting the republican nomination. but if i will had to bet, i would bet that donald trump will win it on first ballot. we're inside the two-minute warning. are we paying more attention to paul ryan and this tour he's
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taking with his side bar platform that he's espousing these days or is this normal for a speaker to do this? >> it is not normal for a speaker to do this. normally when you get a presumptive nominee the rest of the party falls in line and that was one of the takeaways when i interviewed ryan, we're on our own track and will define the party for ourselves and not be defined by the nominee. protecting his party by doing that and caucus by doing that. because donald trump to take the most likely nominee is somebody who is extremely controversial. he could hurt republicans badly if he leads that ticket this fall. paul ryan is saying the republican party is more than done auld trump. >> the speaker could step up to the podium any second now.
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isn't there a rule that goes back to romney fending off ron paul in 2012 but the candidates having to win at least eight states or something like that. >> here we go. >> good afternoon. i just returned from a week long trip from the middle east to meet with partners and allies there. we had important conversations about isis the security threat in that rrnlg and those around the world. it is really amazing how our politics is followed overseas. i was asked about it everywhere i went. i'm also aware while i was overseas, there was more speculation that someone other than current candidates will emerge as our party's nominee. i want to put this to rest once and for all i have stayed out of this race and remained neutral and my job is to ensure there is
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integrity in the process, that the rules are followed by the rule back. that means it is not my job to tell delegates what they should do. i've got a message to relate today. we have too much work to do in the house to allow the speculation to swirl or to have my motivations questions. let men clear. i do not want nor will i accept the nomination for our party. let me speak to the delegates, if no candidate has a majority on first ballot, i believe you should only choose from a person who is actually participated in the primary. count me out. i simply believe that if you want to be the nominee for our party to be the president, you should actually run for it. i chose not to do this. therefore, i should not be considered, period, end of story. i just think it would be run any
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other way. let me say again, i'm not going to be our party's nominee. but not running does not mean i'm going to disappear. when i accepted this speakership, i did so on the condition that i would do things differently than they had been done in the past. for one, i made it clear that this would be a policy and communications focus speakership and secondly, i made clear that last year in 2015 before the primary started, we would be putting together a policy agenda and offer a clear choice to the american people. that's what i told my colleagues i would do and that is exactly what i have been doing. there's a big debate going on about what kind of country we're going to be. as speaker of the house, i believe i have not just an opportunity but opportunity to advance that debate.
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as i've talked about this before, politics today tends to drift towards personality contests not policy contests. insults get ink more than ideas but we still owe it to the country to show what we would do if given a mandate from the people. we have an obligation to give a clear picture and clear choice to talk about solutions, that's why i've been giving speeches and that's why i've been communicating a vision for what our party and country can be. and that's why i'm going to continue doing just that. i believe we can once again be an optimistic party. we want a party defined by solutions. by being on the side of the people we want to take our principles and apply them to the problems of the day. embrace free enterprise and reject cronyism. promote upper mobility and provide solutions to those stuck
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in fighting poverty and tax code that rewards work not the well connected. a strong and focused military and health care system that promotes choice and flexibility, a secure border. a government that allows people to fulfill their american idea, the idea that the condition of your birth doesn't determine the outcome of your life. that's the kind of agenda we're building right now and that's the kind of agenda that we're going to be releasing in the next few months. this job provides a platform to communicate my conservative vision for our country. i'm intent on using it. i'm intent on using this platform not for me but for my house colleagues and those that believe conservatism holds the keys to a competent america. this is a critical role that has to be played. i'm in a position to play that role.
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to prepare for the clear and compelling choice for our fellow citizens so we can earn the mandate to get things right and fix our problems and get our country back on track. thank you. >> mr. ryaryan, a lot of people said that is exactly what he said about becoming speaker and ended up taking the job. what do you say to people skeptical of you and said you're going to back into -- >> apples and oranges. being speaker of the house is a far cry from being president of the united states. specifically because i was already in the house, i'm already a congressman. i was asked by my colleagues to take a responsibility within congress that i've already been serving in from the one that i had. that is entirely different. than getting the nomination for president of the united states by your party without even running for the job. so completely noncomparison in my book. >> two-part question, what happens if this goes to second ballot if you're in charge and what happens, who prevents that from somebody from the floor and
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adhering to the rule back puts your name -- >> i will not allow my name. i'm opposed to my name being put in place -- let me answer the seconds question. the rules committee, some of the delegates will decide what the rules are but i would encourage those delegates to put in place a rule that says you can only nominate someone who ran for the job. >> does that mean you think three candidates remain? >> i'll leave it up to the delegates at the rules community to decide that. i really believe if you want to be president, you should run for president. and when we select a nominee, we should be selecting among people who actually ran for the job. thank you very much, appreciate it. >> there you are. a number of superlatives, john harwood, isn't it interesting they keep pressing at him. what does it say about us that we don't want to take no for an answer for some reason as well? it reminds me when teddy kennedy
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was thinking about it and the party was trying to draft him at some point and he kept saying i will not accept the nomination if it comes my way. same story. >> you're right. we've got a very hot and unpredictable presidential race, paul ryan would be another turn in the race and of course, those of us in the media are looking for different and new story lines. and i take paul ryan at his word he's not maneuvering to make this happen. as i said before, if we get to that unpredictable situation where unlike any other thing in our lifetimes you don't know what's going to happen. i don't think by paul ryan saying today that delegates don't even think about me, put me out of your mind, i don't think that's going to quell the questions if we get to that scenario. but as i said before, i don't think that's the likeliest outcome here. the likeliest outcome is donald
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trump goes to the convention and gets nominated. >> that was a very presidential speech right there. >> great stump speech. >> that's right. >> just briefly to address a point raised earlier, is there sne rules requiring that the candidate comes out of the candidate wins a certain number of states or that sort of thing. >> if you haven't won eight states, your name can'ting placed in nomination. however, that rule was adopted by a committee of the republican party before the last convention and could be changed by the committee before this convention. all rules are contingent on decisions by the committee to do something different, just like you know, congress can leadership of congress can get anything done if they decide to do it and members consent to it, the same would be true by the republican convention. >> we'll see what the response is but i'm taken by the one sentence and i know what he was talking about. i will not run but i will not disappear. he still wants to be heard and
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he has been heard today for sure. john, thanks. here we go, the final half hour of the day, rally day oil leading the way, hitting highs we vntd seen this year above $42 a barrel. now the dow is up 163 points. a leading trader will tell us what he's watching into the close coming up next. >> and top fund manager will take the case for bank of america and few mid sized banks with jp morgan's earnings looming. ♪ i could get used to this. now you can, with the luxuriously transformed 2016 lexus es and es hybrid. ♪ from icy ocean waters... to your kitchen counter. on.
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td ameritrade.
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welcome back. stock continue to grow higher. the s&p is up 21 and nasdaq up 40 and as oil prices leave tate, energy is the outperformer today. >> we have 25 minutes left in the trading session here with the dow up 170 off the highs of the session right now. kenny from o'neill securities joins me on floor. you're now buying this. >> i'm not buying it. i hate to say it, and see the s&p is up 20 points and it looks fun and exciting but i'm not buying it. there's not a lot of commitment
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and doesn't feel to be real action. and after yesterday's report they once again missed on the top line and expecting these other companies to report misses on the top line. how can we keep growing? >> one word for you, oil. >> well, okay, but -- >> i mean, obviously the oil market is buying the notion that opec and russia will come up with a production freeze over the weekend and the oil market is hitting its highs for the -- >> that is certainly what it feels like. i'm not even sure that's true. the headline came to this agreement where's the rest of thm? iran is not going to participate. what about the rest of them? does that agreement include them? it was very vague. i think the oil market kind of anticipating maybe but i'm not buying that. >> there's not a level above which you would say okay, maybe this is for real. telling me 62 and above -- >> i would say 2075 the most recent high we've had. if we break up through there
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with any conviction i might change my mind. we've been stuck in this range for a month, up or down. we're stuck. >> okay. he's not shaving until we get that sell-off at some point i guess is what it's all about. >> oh, boy. >> thank you, guys. things have taken a beaten since the year began, and s&p has managed to climb 1% now. take a look at the financials year to date, down double digits percentagewise and morgan stanley off 22%. is this the time to bet on these beaten down stocks ahead of jp morgan's class, thinks some of these names are under valued and joins us here at post nine. which ones? >> well, you know, to some extent the entire sector has been down so much that the whole group is under valued. i think they are underowned and generals have left. not only do they leave when the fed wasn't going to raise rates but recession came into play. you take that off the table.
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so and capital market has been very weak this quarter. everything is known here. all of the bad is known. >> this reminds me so much of how many years now at the beginning of each year have people said well, the end of the bull market for bonds is upon us. >> correct. >> it hasn't ended yet. until you get the end of that bull market, you won't see the financials move that much, right? >> when you've got to get long rates rising to help the bond market. >> banks did okay for much of last year, especially regional banks. the big banks kind of couldn't get out of their own way but it is a catalyst that will happen. economic growth helps earnings go up. >> m and a is great but how about good old fashion -- >> lending. >> exactly, they have to increase fees and do other things to make up for the loss of that good old fashioned banking income. >> which is what drives it among the companies and what we've tended to own over the past
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years and helped us perform. if you go i'm going to buy a big generic bank and hope banks rise, that strategy isn't going to work. >> give us names you reelgly hang your hat on. >> i think bank of america trades with way below book value. book value is still going up every quarter. the amount of capital they return will go up every year. >> isn't book value less important because it's a measure of where the company has been to this point. where do these companies go now? >> the stock trades below where it traded four years ago. coming out of the crisis. i mean, you know, these companies deserve -- most don't earn their cost of capital right now, tlef to cut costs and increase revenues. >> again, still. >> some of these things have happened. costs have come down dramatically. regulatory side of it made it very expensive, again driving m and a but capital markets revenue, we had a crazy quarter.
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how do you extrapolate that into future earnings? you can't. >> nid range consolidation continues, you don't want to based on xpegsations with that, do you? >> you want to find companies in good parts of the country growing, southeast is growing very nicely. had very good catalysts drichb by things like taxes and corporate relocations and labor laws. so you've got vibrancy and recovery and that's still going on and too many providers in those parts of the market. >> regional banks, what about the small players here. are there a couple you think are more reliable picks. i like synovus, increasing dividends and also a great partner for somebody some day, whether they can taken out or partner with first horizon which i also like, they won't have the greatest quarter but a company that's cheap, good management and capitalists, value creation
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coming. >> weefl got to go but they don't start moving until the fed starts raising rates? >> they are under owned. i think they most post earnings. the whole group moves post earnings. >> you mean moves in the right direction? >> moves up. >> that's what we're expecting. >> thank you so much for joining us. 20 minutes left in the trading session, just slightly coming off the highs, dow up 150 points, results of a new round of crash tests puts some ram pickup trucks in last place, phil lebeau will tell you what need to know. >> linda mcmahon is fighting for equal pat with her new advocacy book. i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird. really? that's the weird part in this scenario?
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look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok. so, why are you orange? funny. see how voya can help you get organized at voya.com.
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the dow up 150 points and the s&p is the better performer of the three major averages and energy moved higher today. we're sitting at highs for the year for wti and that has helped chesapeake energy building on yesterday's 20% gain, the natural gas producer soaring on news that the company renewed a credit agreement.
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chesapeake maintaining its borrowing limit at $4 billion as many oil and gas producers are preparing for large cuts to their credit lines. the news led to upgrading the stock to hold from an outright sell. that stock up another 34% today. >> back above 6 bucks. >> new crash test results are raising questions about the safety of dodge ram pickup trucks. let's get more from phil lebeau. >> these replicate one of the most common and deadly crashes the small overlap crash. you're going above 40 miles per hour and your front corner clips either another vehicle or pole and test did not go well for this truck right here. the ram 1500 the overall rating marginal according to insurance institute for highway safety. the truck structure was poor. on the flip side, the ford f
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series had a top safety pick destination, the only pickup truck tested deemed to have a good rating in all categories. the questions becomes will any of this impact whether or not somebody buys a particular model. probably not. pickup truck buyers are among the most loyal and stick with their brand through thick and thin. here's the market share break down. ford leads when it comes to pick uptruck sales overall and dodge ram coming in at 22.3%. we reached out to chrysler and parent company of ram and spokes person for the company says their trucks meet all federal safety standards and these tests are not indicative of all world incidents and accidents as they happen. still, these are the types of tests that people look at and say, wow, maybe other work needs to be done with different models after these tests take place. they meet all federal safety standards. >> you almost answered my question. wouldn't they test for that as
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they are building the truck? they know that that's what the test is going to be? don't they want to try to pass the test? will they hold the line and say we meet the minimum federal safety standards. >> they believe they meet the minimum federal safety standards and they believe that they have the safety standards that are not only going to meet federal standards but also protect you in all real world conditions. bill, we hear this from a number of automakers, they sit there and say, we build to standards out there and we think we're doing what needs to be done. then again you have these tests and others saying you kcould probably do a little more. >> thanks, phil, appreciate it. >> that's aterrifying video by the way. >> don't like seeing that one. we do have 12 minutes to go left in the market. keeping an eye we're seeing a rally, this time actually
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holding and building to some extent. the dow is up 149 points and s&p up 18, that's good for 1%. the nasdaq lagging again today but still up about 7/10. >> santoss will be with us looking for stabilization in the market and she'll outline what she's looking for, won't you, after the break? stay tuned.
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a little less than continue minutes left and art cashin said the market on close orders show an imbalance of $150 million to sell. not much, we'll see if that has any -- we come off the highs anyway at this point. joining us, gab bring ella santos, there's a lot of uncertainty about earnings as we go into a crucial time of the year. >> exactly. all we need for earnings to start picking up again is not for everything to become rosy and perfect but just to have more stabilization continuing in oil and dollar in chinese growth and i think we have gotten that over the last few weeks. maybe one q earnings will still see pain. we're not expecting big pickup
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but later in the year the next three quarters. >> so much seems dependent on the oil price. effectively wiped out this quarter means if we can keep oil holding up maybe investors will give these companies benefit of the doubt. >> that's when the energy side and dollar really is the one that's permeating all of the sectors i would say, especially the large multinational companies. so oil we definitely want to see stabilize and dollar as well for the broader index. >> defensive, growth, industrial, where are you going to go to make money? >> we still fall more on the cyclical, we will get stability in the variables and growth in the u.s. will hold up and we'll stay days more like today where it's -- >> does it seem as well that investors are out of the market all together or short positioned here? as we talked about earlier, could that actually help fuel this rally and help it continue? >> i think there's a lot of
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skepticism from investors in terms of sent. feeling neutral on the market. if we get a pickup in earnings later on and sentiment starts to improve you'll see a nice bounce. >> you do admit we could see pain in the earnings. >> in the first quarter, absolutely. >> and banks start tomorrow and through the rest of the week here, a very important sector right now. >> yes and not just financials but first quarter earnings still seeing a lot of pain from the energy component for overall and still had dollar strength in the first half of the quarter let's say. i think we can't look for a panacea this quarter but maybe the second and beyond things can start to improve. >> i wonder to what extent the weirdness with the japanese yen being so strong, concerns about italian banks, two really popular trades here and now suddenly emerging markets are hot now. how does that affect where people are investing? >> we have an interesting debate within the investor community about emerging markets.
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is this sustainable, this rally? is it not? is that will really depend to me on where the dollar goes. that's such a big influence and where the commodity prices go from here. it's becoming interesting but more of a developed market story that we're comfortable with. >> good to see you. thank you so much. >> we will take a break and come back with a closing count down in just a moment. >> democratic hopeful bernie sanders wants to ban fracking for good across the country. a debate on fracking the economy and the environment, you're watching cnbc first in business worldwide. what if it were your job to make the world a more beautiful, colorful place? at ppg we think that's something we all need to do. we create, invent and formulate amazing paints, coatings and materials. so we can make the world run faster, stronger, fresher, smarter, cooler,
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and it keeps my investments fully mobile... even when i'm on the move... ahhh. right at three minutes to go before the bell. we had breaking news on faulty homes, what's going on, sue? >> they have hired an activist lawyer, he's been trying to oust the ceo, which ironically he hired, mr. dugas, scott wapner is confirming the report that pulte group has hired -- the ceo has said i'll tender my regular is nation but won't do it until next year. it triggered harsh comments
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yesterday from the founder of pulte group accusing the board of not living up to their duty if they let him stay at the company. he has taken the next step escalating what is turning into a nasty fight. pulte's group founder is hiring activist lawyers. >> very good, stock up 1.4% as we head towards the close. normally we would show the dow here but i want to show you the s&p, one number a lot of traders have been watching, 2062 on the s&p, we have above that for a time into the afternoon but since pulled back now at 2061 but we'll see if we can hold that. as you know, oil was really calling the shots today hitting a 2016 high again. wti was above $42 a barrel just off that but still a healthy gain of 4%. we get earnings coming out tonight and first thing tomorrow morning at csx after the bell tonight and tomorrow morning, bob, jp morgan chase starts the
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very important parade of bank earnings that extends through the end of the week. >> big names are down 10, 12, 14% on the year. any positive comments is going to move these stocks forward. >> you would think so. >> this whole thing with oil, i want to put up the chart again, we went up on the reports that the russia and saudi arabia agreed to a product cut regardless -- >> a production freeze -- >> very important point. >> regardless of whether or not others including iran participated. there was no confirmation from the russian oil -- the market believes now ahead of the opec meeting there's going to be some kind of deal. i think this is good news but remember, the market has now priced in there's going to be some kind of deal ahead. therefore the risk is on the down side. if there's no deal and nothing comes out of this, oil will drop and chevron is close to $100 and it will be down on monday morning. the risk right now is to the
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downside for energy stocks but a great day overall and real breakout for oil. >> we'll see you later. upside today, up 162 on the dow. we've got carnival corp ringing the closing bell and gulfport at the at the nasdaq. see you tomorrow, kel. zbla. >> thank you, welcome to "the closing bell." here's how we're finishing up on wall street with strong gains across the board breaking a string of losses, we were down more than 1% on averages last week. today the dow up 1%, 164 points, the s&p broadly up 19, 2062 call it almost it the level there in the nasdaq. underper foorming a little bit and we're awaiting earnings this afternoon. this time from transportation giant csx bringing numbers as
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soon as they are out and michael ward will join us live in a little bit. we have senior markets commentator, mike santoli and along with susan ox and more on today's market action, tim seymour, good to have everybody on board. and just beginning mike with the action today, we are digesting the first set of earnings reports from yesterday, didn't trade that great, not saying alcoa is the biggest bellwegts in the world. and then in the meantime it was all about oil, huge moves there. >> oil and that actually triggered a really rally in a lot of related. the material stocks were up and industrials were up. you had treasury yields lift a little bit. you had the treasury bond market looking overbought. that helped the financials. all of that stuff seems to work. the broader context here is we've finished with the s&p within is% or so of this 2050
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level every day since the fed meeting ended so we've been going side ways chopping around in this range, seeminging to clear out bullish and bearish prediction. >> no surprise, susan, so many people are waiting to get sense out of the fed. as the concern about the global situation passed and are we on target for more rate hikes or not? z >> financials got a huge lift. the relief of finally getting earnings coming out starting tomorrow that we're finally going to see how bad is the exposure to the energy companies and then how much of a lift at all do they get from that interest rate increase in december? this will be the first quarter we see when we potentially got impact on the net interest margin which is a huge think for the banks. >> tim seymour, what are you
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trading here around earnings? >> i think you have to be very conscio conscious. the stocks that have been defensive and consumer staples and beverages and foot stocks, these are things going into the earnings season are ones you have to be cautious on. even though i believe this is a group of stocks that have you been trading at the premium, but i think that the financials obviously very interesting right now, we're talking about oil and even if it's been more sent. for the banks and there was an article in the journal talking about the und funded loans that could also be -- also something that everybody has been concerned about financials. i realize that the corps business is subject to the steepness or lack thereafter of the yield curve. i think sentiment has been
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terribly low and comps won't necessarily point to the fourth quarter but the second half of year could be better. that could be enough for the sector. >> we have bank of america up 2% today. >> you look year to date, bank of america, they are down 20% year to date. you have to feel some of that has been oversold and it's going to come back now. >> exactly. >> one of the things that has been striking about this whole period the force of the rally took everybody by surprise. once people got comfortable that the new highs -- old highs are in sight and we've been chopping side ways, people are not comfortable broadly with valuations and looking to kind of sell stuff that's moved a lot and starbucks downgrade today and i do think that tells you that people are not really fully emotionally bought into this tlal rally. i don't know if it's easier to carve out more upside with earnings or not but that's an interesting context. >> the starbucks one was interesting.
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what were you saying, tim? >> michael is bringing up a great point. largely we've been tracking side ways since the fourth quarter of 2014. but one of the reasons why this market continues to go higher is because no one is prepared for it to go higher. what i will say about today's price action, as much as we're stalling at 2060 or maybe we're not, this is certainly been where we've stalled. if you look at steel stocks and transports and things that clearly were battered and beaten and are indicative of the economy and whether it's real or not you're seeing an yun lift, steel companies they are going sideways, outperformed by 500 basis points. >> csx results are out. susan li has the numbers. >> the railroad operator csx in line with earnings per share in the quarter at 37 cents. we have a slight miss 2.62 billion earned in the quarter.
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we were looking for around 2.6 or so. when it comes to volume, volumes were down 45% in the quarter, something that csx has warned into the earnings season. back to you. >> susan, thank you. coming up, we'll be speaking with the ceo michael ward, discussing these results. in the meantime, what do you think? >> a common pattern where you're stretching to make the number but the revenues are light. this is a tough group. everyone knows long term challenges that the rails are dealing with for coal and other energy shipments but they are so beaten down. do you buy cyclicals when they look cheaper? it will be interesting to hear what they think the rest of the year looks like. >> here's a company so many people think the sentiment has turned and maybe we have seen the worst of the declines in shipments and maybe intermodal traffic can continue to be strong and the u.s. consumer is strong. >> i think this is one that will stay choppy.
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we think of transportation as being a leader economic indicator with the commodity fluctuations and issues with china and industrials sort of staying weak and draggy here in the u.s., i don't know this one will come roaring back the way you might see in other cycles. >> the other news in this sector is canadian pacific abandoning its bid for csx and norfolk, it's been trying to kind of get in and combine the canada and north america rail but a slew of people from the regulatory community to some of the potential customers have said they wouldn't support this deal. i wonder where that leaves companies like csx to continue to go it alone. >> well, first of all, i think some of these companies have a business that has more pressing power than others. i think csx has a multiple that makes it more interesting. someone like southern has gas and diesel and intermexico, not
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reliant as much on coal by rail, et cetera. whether the bid to the sector is alive and well, ultimately it's pretty easy to make an argument that valuations aren't cheap enough. the sector has had a nice rally off valuations that were only 10 or 15% cheap to norm. things got cheap and they valued back. rallied 20% off the lows and pulled back into this number a little bit. i think the sector will be somewhat in play but everyone has a slightly different business. ksu is more interesting. >> we'll ask the ceo for further efficiency moves in this environment coming up in just a little bit. those shares up 1%. speaking of the regular lay electric disclosure by the new york times by fanny and freddie, i don't know if everybody saw this one, shares of those companies absolutely shooting up, mike. there's a sense that the government knew then they were profitable but still pushing them to sweep profits back to
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the government at the time but people betting on these stocks as an investment, this one continues to be a battleground. >> it has been such a saga, there was a preferred stock play for a long time in fanny. this idea that somehow they were entitled to something from the government and government quasinationalized them. it is something that they think will be a lottery ticket trading in the money but it's hard to see exactly how it plays out. you hear almost nothing about it on the campaign trail, anything like that. >> it's truly faded. >> it's completely faded. i think in a funny sense people have been em boldened thatthy think there's this opportunity to push back an reaps in rewards people were due during the financial crisis. there might be overly optimistic views about what's going to come out. >> do you get a sense the tide is turning here and post financial crisis era he is sfeshlly? we were reminded new york -- department of justice led by sneiderman settling with
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goldman, has that chapter closed now and fresh one opening in which companies feel they can come out and try to challenge some of the boot that's on their neck so to speak? >> yes, right as one door closes, another set of handcuffs open. i'm afraid they will be overly involved. what i think feels different and where we're turning a new page is in the housing sector. we're starting to see we have cleared through a lot of regular lay tri and legal holdups for assets changing hands for these loans to free themselves up and still getting through some of that. some of the housing plays and if we're talking about fanny and freddie, those are things that i think fundamentally over the last few weeks and last quarter of earnings and guidance we've been getting from the players is that their industry has improved and has healed. there's not overproduction. there's demand and there's probably pent up demand. that's where i would look at this whole lesson and say follow where you can go back in to find
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real supply and demand dynamics. >> what do you think about pu pulte, this point the verbiage is way over the top but shows how intense it has gotten. would you pick on a pulte back to being number one for example? >> they look interesting. whads going on here is there's a sense that the business is really turned and asset is still what it's all about. i wouldn't -- you don't have to jump into that story. there's other ways to play the sector but to me it is not a no touch at this point. double negative. >> exactly. >> elegantly put. thank you for joining us. tim seymour, there's more coming up with tim and fast money crew at 5:00. bank of america's head of high yield strategy is saying calamity is coming for the high yield market and he'll tell you what has him worried. >> forget fracking, that's bernie sanders latest edition to speeches call for a national ban
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on frack being. we'll debate the impact of that move next. coming up linda mcmahon will join us on set to talk about the gender pay gap and her friend donald trump's candidacy. you're watching cnbc, first in business worldwide. convicted felon and con man. that was a long time ago. you know, they made a movie about it. you were shown to be quite skilled at fraud. times change. now i help catch the bad guys. me too. i help banks detect fraud by applying cognitive analytics to public financial records and social media. so if somebody said, "catch me if you can...?" we can. let's do a sequel. it could be a buddy movie. i would like to have a buddy.
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welcome back, democratic presidential candidate bernie sanders bolstering up his stance on environmental issues this week proposing nationwide ban on fracking ahead of the new york primary. his campaign released enthuse in ad is about his proposal. >> do washington politicians side with polluters over families? they sure do because big oil pumps millions into their campaigns. bernie sanders is the only candidate for president who opposes fracking everywhere. why? because fracking pumps dangerous cancer causing chemicals into the ground and threatens our drinking water. bernie, he can't be bought by them because he's funded by you. >> i'm bernie sanders and i approve this message. >> that was a susan sarandon voice over. joining us now, charles caring ton and along with walt ter hang
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from toxics targeting, welcome to you both. charles, first to you on what the impact would be to the economy if bernie sanders proposal were to go through and there was a ban on fracking. >> sure, fracking is responsible for $5 billion of additional oil production in the world. if you were to ban it, you would have a global petro crisis almost immediately due to the cessation of production in the u.s. you would lose about 2 million jobs in the u.s. you would see tremendous power to our rivals in the middle east and russia who would benefit from much higher production and prices. and perhaps most ironically, you would put a lot of carbon in the environment. natural gas has replaced a huge number of coal plants in the u.s. and because of that we've taken about 1 billion tons of carbon dioxide out of atmosphere purely from the reliance on natural gas.
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>> do you think this would be a good idea? >> number one, i don't think there is going to be a ban. even if senator sanders gets to be elected president, the federal authorities issue almost no fracking permit anywhere in the country. i really think it's a symbolic gesture. i i don't think it's going to have any impact. the fractioning all over the country now and fracking every day. it's the reason we're a wash in oil and gas. i think it is a ploy for votes. >> understood but we expect that of the politicians on the campaign trail. the question is, if there's substance behind it. look what's happened with the current administration, it's clear it's been a horrible period for coal companies and utilities if it had to comply with bigger environmental regulations and so forth. if the president wants to decrease fracking and that president is bernie sanders and let's say by using the bully pulpit or other means he's able to do so. what impact do you think that would have on the environment
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and economy? >> well, it would definitely help the environment because fracking is an enormously polluting undertaking. what americans don't realize, when you frack, you have to frack every square mile. for example, the marcell us share formation goes from southwest of syracuse all the way to tennessee. imagine placing 16 giant wells every square mile for that huge distance. not only the drilling occurs but then you have to pump 5 to 7 million gallons of water to crack the rock to release the gas. this is just an incredible polluting activity and that's how come people want to ban it. they want to regulate and try to do something about it. and that's how come in new york we actually prohibit shale fracking before it began. >> although for reasons that bernie sanders citing or susan or whoever, it's cancer causing and hurts drinking water and
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pollution isn't even mentioned. >> that's exactly where it comes down. is there anything -- middle ground here where some of the fracking activity can persist with some kind of safeguards and it is about drinking water. people feel it's objectionable but it's a matter of leakage into chemicals into the drinking water. >> don't you think the industry will have to answer for this ultimately? >> i agree with much of what's being said here the reality is it is not fracking, frack sg a red herring, even the eps has said it has minimal impact on drinking water. what does impact drinking water is poor well construction practices and shoddy practices that should be addressed by regulation and by penalty. but just by rough anl gi, would we want to close down the entire banking sector at 2008 and 2009 because of a few bad actors? >> well. >> fracking itself is not what it is being made out to be from a pollution and danger standard.
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>> but charles, one of the things we haven't talked about earthquakes and number of earthquakes in oklahoma registered by 3.0 on scale has gone from 20, five years ago to 890 last year. and that seems hard to believe that's just a result of a few bad actors drilling wells poorly. so there seem to be actual legitimate implications of fracking, not to say we need to shut it down but the industry needs to answer for that, seems more systemic than bad actors. >> that's not a function of fracking but injecting water into disposal wells under tremendous pressure -- >> isn't that required for fracking? >> no, it's not. it's not. you could actually recycle the water at the surface at fairly minimal costs. i agree with walt that more rigorous regulatory regime could be i am plimted at fairly low costs and address a lot of concerns people raise about
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fracking at large which are really much more about specific either poor practices or areas are under regulation. >> walter? >> i think that's totally not going to happen. the problem with fracking is that you're producing enormous quantities of toxic radioactive waste water and you have no place to get rid of that. when you pump it into the ground to try to send it back down into where it came from, it basically is causing these earthquakes. there are no treatment plants to handle this material. for example, in pennsylvania, in 2008, they were dumping this incredibly toxic wastewater into local sewage treatment plants, toxics went right into the river and the next thing they knew, 850,000 people could not drink public water drawn from the monday gel hay la river -- we don't have solutions for these problems. >> i want to give you a chance to respond before we go quickly charles.
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>> dumping dirty water into a river is clearly a bad idea. once again, we have invested at interveil and water cleanup techniques a plant being built in marcellus to treat water to the point it is potable, we need to see the government step up to make regulations to make fracking a tremendous energy exclusion, not on solution not only for the u.s. for the planet. donald trump, setting off a debate about free trade. kevin brady will weigh in. csx out with earnings moments ago. michael ward joins us to discuss those numbers next.
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csx, ceo michael ward joins us with an exclusive interview. good to see you again, michael. it's been such a difficult period for rail companies here with the declines in coal shipments and other things going on. would you describe the outlook today as healthier than the last time we spoke or is it still a tough environment? >> kelly, i think it's a somewhat tough environment. there are some signs of life. if you look at the consumer economy, i think it's pretty
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solid. automotive is expected to grow from 12 -- 17.5 to 17.8 million light vehicle production next year. housing starts going from 1.1 to 1.2 million new housing starts and domestic intermodal business is strong. >> what about that coal? >> coal is very challenged. we were down 31% in this quarter and we expect to see a similar reduction as well in the second quarter of this year. if you think about this both the strength of the dollar and the low commodity prices, it's impacting a lot of our markets, the dollar has strengthened some and weakened some in the last several months but it's still up 20% over the last 18 months. we're seeing that impact obviously our exports and increasing imports of metals. but we see that it looks like it's stabilizing to some extent but we'll be a very challenging second quarter.
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>> you're not a coal trader so we're not asking you to call what's going to happen with that commodity but you have to make business decisions about how to either increase your volume somehow in that kind of pricing environment or do other things to help improve your earnings power. how are you adapting? >> we focus on things most under our control, our safety and service and productivity. for the quarter less energies than accidents this quarter and service was up dramatically, one time originations up over 60% year over year and productivity side we had an outstanding quarter. we had productivity from a efficiency based of over $130 million. we saved about $64 million because of the volume decline and we obviously had lower fuel prices. our costs were down 12% which i'm very proud of. >> it also sounds from reports that the potential for
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consolidation between canada and the u.s. is it going away for the time being. where does that leave you in terms of your competitors right now? especially as in some ways it's these truck rates have never been cheaper, right? how is that affecting people opting to pick train over other methods of transportation? other domestic intermodal where we partner with trucking companies, it was up about 11% in this quarter. what we're finding with the driver shortages out there, the trucking companies have their drivers do the local pickup and delivery and put it on the trains for the long haul between the major city pairs, we think that's a good strong growth market for us for a long time. it's really a cooperative thing between us and truckers and we see lots of opportunities in that market. >> what do you think it would end upturning around coal volumes here for you guys. would it change in administration to have an impact if it felt like there wasn't so
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much of a negative environment for that commodity and does it all depend on china? >> what are the key factors. >> one is the price of natural gas. with that down and $2 and less range, it really makes it very difficult for coal to compete for electrical production here in the united states. and that's one of the main things that's driving these dramatic reductions in coal shipments but our exports are also down but the world economy is not very strong and there's an oversupply of coal in the world market. it's a double whammy but our domestic alone was down about 25%. primarily driven by the low natural gas prices. >> and what about the political environment in north carolina? i understand you have about 1,000 workers there. is it hurting business the latest issues over these religious freedom or discrimination laws? >> no, we move about a million car loads a year in north carolina, we have about 1,000
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people there, 1800 miles, we're seeing good business there in north carolina and actually we're working on facility to bring more intermodal business into the stast north carolina and serve our customers even better. >> finally, we've heard reports about just how oversupplied this country is with oil, that maybe there are some trains actually train cars sitting fully loaded with the stuff. >> what are you expecting, about those kinds of sea changes and supply and demand for commodities generally speaking? >> well, the oil business moving crude oil was never a real big business for us. the peak was about 3% of our revenues. it's now down in the 1.5 to 1% range. so it's not a big impact on us. you're correct, there are lots of empty and loaded rail cars sitting around. if they are loaded they are adequately protected against any
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risk to the public and many of them are just sitting empty at this point because the spread has gotten so tight that that shale oil out of north dakota doesn't have a good market in the east. >> michael, we thank you for joining us and giving us more color on the business. we look forward to the call tomorrow. >> michael ward the ceo of csx. >> we have a couple of breaking news stories to gets to. >> let's start with valeant pharmaceuticals falling on a report from dow jones that one of the big bond investors is notifying the company of an intention to call for a default bad bond investor being center bridge, citing the delay in the drug maker's filing of the anl you'll report. we're looking at shares down 6.5% after hours. keep an eye on valeant pharmaceuticals. in a separate story, u.s. regulators are preparing to notify some of the largest u.s. banks, including jp morgan chase that they have submitted flawed
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living wills and at least half of the eight u.s. banks labeled systemically important by expected to receive harsh verdict on these living wills. jp morgan is reporting earnings tomorrow morning. we'll have to keep an eye on the u.s. banks after hours as well. back to you. >> indicated in a lot of news there, what about this valeant one? >> the creditors not really presenting a united front -- we thought valeant dodged this bullet. so if one creditor wants to say, no fair, you guys in default, it is not a good thing. didn't mean they are going into bankruptcy but you start to squeeze on them on their credit availability. >> it's not argentina just yet. we'll continue those shares and keep an eye on it, down 6% after hours. time for a news update with sue herrera. >> here's what's happening at this hour. bono testifying before a senate appropriations subcommittee on the refugee crisis and violent
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extremism. he says nations teetering on the brink of instability need a better bridge between humanitarian assistance and long term development. the budget deficit expanded during the first half of the fiscal year as spending rose faster than receipts markinging a turn around. the $461 billion deficit was a 5% increase from a year ago. brazilian president rousseff hinted that her vice president was one of the ring leaders of a plot to overthrow her. she sent a audio message was evidence of the conspiracy. north carolina governor pat mccrory, wants to change a law that prevents people from suing over discrimination but not challenging a measure that bans access for transgender people.
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that is the cnbc news update. back down to you. >> i'm looking at what the governor said on that one, after listening to people's feedback for the past several weeks, there's been a great deal of misinformation and confusion and outrage and hypocrisy and says apparently based on this, he's taking action to affirm and improve the state's commitment. >> then he stopped far short of the bathroom part of that legislation and reinforced the fact that is not a quote government decision. it is a private sector decision and a local merchant decision. and that is what is really creating the controversy even after he is calling to amend this particular piece of legislation. a lot of critics are saying but you did not address what was one of the key components of it. >> a difficult one, thank you. >> sure. >> sue herrera.
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>> linda mcmahon oversaw fighting in the ring as ceo of the wwe. she's taking on busting the glass ceiling. we'll talk about her new organization women's leadership live and gop politics and campaign of her old friend, donald trump. stay tuned. make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients:
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time for today's rapid recap. how's how we finish, dow up 156 points, nearly 1% and s&p up 2061 and nasdaq added 38 and brent and crude oil hitting new highs for the year. settling slightly off the high price of $45 a barrel and crude finished above $42. gained 62% from the low on february 11th and sticking with energy, chesapeake energy ooding on to yesterday's 20% gain by closing 30% today. the company did renew a credit agreement remaintaining the borrowing limit and upgrading the stock to hold from sell. today is national equal pay day, aim to raise awareness about the gender gap in america.
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our next guest knows the ropes of american business and with us now in a cnbc exclusive, linda mcmahon and co-founder and forler ceo of world wrestling entertainment. welcome to post nine. >> thanks so much. hi, everybody, good to be here this afternoon. >> this marks the date of the year in which -- say it the right way for me here. >> i'm not sure i'm going to say it the right way. we're talking about equal pay day and so it's like how much more months have women had to work to get to the same point that guys have in their salaries. >> it's still 21% below on average. >> some numbers are 21%, some are 28%. it goes all around. >> what did you find at wwe in your experience? >> i was ceo at wwe. we were very careful to make sure we had equal pay for ee wall work. but i do believe then there is a
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subjective evaluation of what equal work is. you've got experience and you've got all that you bring to the table and creating your marketing and doing all of that. it's a little bit different view. >> sure. >> mike? >> i guess i also wonder, it's not just really about a boss or company deciding these two people should be paid the same amount. there's a lot of broader context of things like lack ever child care and things that go into whether a woman gets as far in her career as a man does who enters in the same way. what do you do as a country to take care of some of that? >> i can tell you from a company perspective, smart companies want to make sure that they are retaining they are best executives, whether male or female. equal pay has to be equal on both sides, not just a gender gap. and there is a gender gap. there is still a glass ceiling.
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i think we continue to experience that. that's why i started the company women's leadership live with two other partners, we want to train women to be successful. ever how they define success, middle management to the suite on be entrepreneurs or leaders in their community, we want them to have the tools to do that. >> we've been talking about this for decades, jendser gap in pay has been around for a long time. what do you think it will take to fix it. the soccer team are suing the soccer federation for equal pay. what do you think of lawsuits versus private individuals acting? >> what i would like to see more is private enterprise doing more actually do raise the pay of women. we have to advocate for ourselves as well. sometimes others are willing to take risk. part of what we want to do with women's leadership live,
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encourage women how to negotiate for themselves. you have to know your audience when you go in to negotiate for a raise. if you're just sitting there for the first time bringing all of the things you've done to the company and in front of your supervisor for the first time, shame on you. follow social media posts that the company is following and make sure you supervisor knows what you're doing on a regular basis. try to keep that in the forefront, i would rather see it done more that way than government regulation, in the end that is not as effective. >> can we talk a little trump? >> trump what? >> did i read you and your husband are one of the biggest donors over the years to his charity? >> here's what happened, donald was a performer in a couple of our wrestlemania events, he earned pay as a celebrity performer. >> was he wrestling? >> no, he and vince were in the ring, battle of the balance nars and vince's side lost and vince
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got his head shaved, never been able to shave donald's head. the money he earned, i don't want it but pay it to my charity. that's what we did, we paid what he earned to his charity. >> would you support his candidacy you're a republican yourself and he's the front-runner. >> he's the front-runner, i've known donald for 20 years, sometimes i'd like to put a sock in his mouth. what i can tell you about donald, he's a patriot and loyal and he has a good family. he's a good businessman. i think he would hire good people around him. that's what i know from the side of donald that i know. >> he would be very different kind of president for sure. >> yes, you're own political career we will -- should we ask you about it? >> it's not a whole lot to tell. >> you had your experience, forget about it. thank you for joining us, we'll see how this current one plays out on the campaign trail. >> pleasure to be here today. >> thank you again.
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linda mcmahon former ceo of wwe. >> big buzz words on presidential campaign trail, johnharwood speaks with the house ways and means committee, kevin brady on these political hot potatoes. we'll get the numbers right after the break. stay with us. you can fly across welcome town in minutes16, or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪
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the inventory data is out and jackie has the numbers. >> good afternoon to you the american petroleum institute out with the preview of the data we'll see from the department of energy tomorrow. remember the api is private data, doe is the official government data. we did get a build of crude inconvenieventory of 6.2 millio barrels. this data is a little bit mixed. i could see traders reading that as more on bullish side. i will say this, the estimates were all over the place. people didn't know what to expect. some were looking for draws and some looking for builds. last week when we got the surprise inventory drawdown this started the leg higher in crude oil prices. this is very important but the question is going to be how people interpret it and how they'll balance it with the other headlines we've had propelling oil higher about a potential freeze over seas. that's the million dollar question. back to you. >> exactly.
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it's interesting because we're talking about sort of the existing stock piles and then the extent to which the taps stay on. >> without a doubt. oil prices have not been going step for step with the supply demand numbers, they are all about are we finally going to get into some sort of balance. at least the signs are starting to emerge. >> we'll see what happens with the opec meeting as well. >> free trade becoming a divisive issue, kevin brady sounding off after the break and his comments may surprise you. why do we have aflac... aflac... and major medical? major medical boyyy, yeah! ♪ berr, der berrp... i help pay the doctor, ain't that enough for you? there's things major medical doesn't do. aflac! pays cash so we don't have to fret. something families should get! like a safety net! help with food, gas and rent so cover your back, with... a-a-a-a-a-a-a-aflac! learn about one day pay at aflac.com/rap ♪
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welcome back, kitchen braid,is an unabashed free trade supporter, as donald trump is pushing the party towards tariffs and trade wars, to get his take on taxes, trump trade and other ts. >> we talk about bitter divisions, but on the massive pacific trade deal, kevin brady is president obama's ally. transpacific partnership, is that going to get done? >> i hope so. it all depends on whether the
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white house can resolve some of the policy decisions they made. it's an important agreement. >> you're for it? illustrates i haven't declared that, but we're examining it right now. i know the value of us being in that region playing by u.s. trade rules critical to economic growth. >> reporter: let's be real, you want this to pass, don't you? >> if the white house can solve the problems, and there's about four or five key ones left. if they can solve those problems and build support, i would like to see this move sooner rather than later, but the substance and the support will drive it. that will drive the timing. >> reporter: do you mean renegotiate with 11 other countries? >> no. >> reporter: legislate, that sort of thing? >> it's not unusual in any trade agreement to go back and work out problem areas. this is no different. >> it's going to be done either legislatively through the implementing -- >> normally it's down through discussion and actions by other
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countries, saying this is how we intend to implement this. >>. >> reporter: kevin brady is talking about the tap dancing that would be required by the administration through her and implementing legislation on issues like tobacco, biologics, but the smart bet in washington is this is likely to get done at the end of the year probably after the presidential election, guys. >> john, thank you. would you agree, susan? >> i think there's still a lot of people who feel vulnerable on issues of trade. there's been a populist furor kicked up on the campaign trail that even with a lame-duck session of congress, i think it will be a little more tough sledding than he's making is sound like. >> and again a lot at stake with so many different countries. facebook officially making its choate bot messenger announcement just a couple hours ago. what that means is next.
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ed first one to build great users experience to be at about a bill chron active users. we're alst there, and then
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build monetization gradually, but we don't ever want to sacrifice consumer experience. >> that was facebook's vp of messaging products, talking earlier about the future of the messenger platform. he also -- we talked about some of these other companies like existing things, and he just said they're simp and basic and we're trying to be something better in the emerging chatbot world. >> i don't know where it runs up into a new consumer experience or product experience. it seems like a tweak. i probably don't know enough about it, but it reminds me of these automated functions, and now it's more organic, but maybe some developer is going to wow us with something revolutionary. >> another analogy is kind of like siri, but written. everybody is trying to wrap around, what are we talking about?
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>> i think there will be places where it has great uses, but at the end of the day there's no substitute for human interaction, or over the phone, there's something about a live person, a live thinking human being on the other end of the phone that will get you better service, make you feel more welcome, give you better -- feeling more customer experience, so i think there will always be limitation >> just a personal anecdotal, two credit card companies, one you get a person, the other press 1, guess which one i end up using more, where a person picks up. >> though i think they're going abit from the other end, not taking it from a person to a chatbot, but a clunky two-thumbed text message to something that seems like you can converse with. perhaps that's the different, or having to use 40 different apps from a phone, rather than one elegant facebook messenger.
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>> though i think the convergence argument, especially around the younger people, when talking to millennial, they sort of like having a bunch of different things. you know, i'm not kind of -- -- you know, they like having a bit of i'm choosing, not being dictated. >> is that true with the girls? >> we haven't allowed them to enter the world of instagram. we're holding the line on some of these things, but there's these other skewing social media, but i think that will be the case. different venues for different things. i think on the back end of this it's not about text with a fake human. it's something about making this experience looking at a screen with your fingers and a little more like a natural interaction. a whole new paradigm, exciting to see how in fact it works. >> thank you for joining us. waiting on the big earnings before the bell tomorrow morning. jpmorgan will get into the
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thick. >> and retail sales tomorrow. >> we won't get those for quite some i'm. i really appreciate it. that does it for "closing bell." "fast money" begins right know. phony phony starts right now. live from the nasdaq market, overlooking new york city 'times convey. tonight, crude's long national nightmare is over, or at least so says one closely followed market watcher. he'll tell you why now is the perfect time to buy oil stocks. >> and a crucial -- and cool about calamity for stocks, what that is and how you can protect yourself. you will the know believe what mark zuckerberg said about donald trump. we'll tell you the comments that are absolutely burning up the web. but first the markets, the dow closing higher with thor han 164 points, and with today's move the s&p is just 3% away from all-time highs. if you'v

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