tv Closing Bell CNBC April 25, 2016 3:00pm-5:01pm EDT
market interest rate is being driven by what the federal reserve is doing. >> right. gentlemen, got to leave it. thanks so much. >> thank you very much. steve gate to have you back. thanks for watching everybody. >> closing bell starts right now. ♪ a special request with that song to kick off closing bell. next to me, bill griffeth is back. i'm kelly evans. very pleased you returned from your travels. by the way i hope you're ready because we have a lot of big earnings. >> check out twitter. we have a special greeting to everybody there. the market a little bit under pressure today so far. pressures as we kick off a very big week. we got earnings and multiple central bank meetings around the world. this after disappointments from
microsoft and alphabet last week and debate whether apple can turn the tech story around. >> global debate about apple. more on that in just a bit. valeant getting a ceo the same week michael pearson is to testify on capitol hill. >> also argentina's return to the bond market. kay kelly will return and tell us what it means. >> after the bell, we'll discuss why nikki sixx is calling on president obama to go after youtube. >> you have nikki sixx and youtube, only on closing bell would you have that. we start in saudi arabia today. all right. we don't start in saudi arabia.
so let's go to our cnbc closing bell exchange with the dow down 61 points. joining with us we have rob weiner, ben willis and rick santelli checks in from chicago as well. ben, the tradition lately has held leading up to a federal reserve meeting that the market tends to rally. not a hard rule but that typically is what happens. is something else going on? >> something else is going on. when it's the fomc by itself but the problem central banks around the world are affecting this market and their indecision is creating indecisions across the equity universe, if you will. people continue to seek safe-haven in the fixed income market. you have people's bank of china moving their yen and making
comments about their system and how they are trying to deleverage on the real estate side of the equation. then you have the people, the bank of japan with some of their comments. not very effective. this market, i think, is just trading thoe ing on thin air an. people who are short, we call it the short basket, the negative calls, so you see pressure on the solar stocks and tesla and the like, the heavy momentum to the short side. other than that we're not seeing any real investor participation. >> the skepticism that was prevailing when i left is still very much with us. >> oh, yeah. ron, that opens an interesting question as we move through earnings season. we've seen some big sell offs. your loading up anywhere where you're seeing prices come down levels where you're buying them? >> frankly, the pes, depending on who you look to it's 16 to
18. you look at five years forward for the performance of the stock market once its passed about 15 and a half it doesn't look that good. i think the previous speaker was right you have to pick your spots. for us we own the basket of microsoft, google, facebook and apple. apple being cheap, but doesn't look like the growth is there. microsoft looks like it was punished. i think you got to own the basket but i don't think any of them will go super high. they had a great year last year and it pays for them to come down a little mostly because the earnings aren't there. if there's no e in the p, there's no price going up. >> i'm working that out. rick santelli how are the markets setting up for these meetings this week? what your noticing right now >> well, interest rates are going in pretty much at the highest closing yields sometime in march, which is an extreme but if you look at the march
high yields, especially for the long run we're getting very close to taking those out and comping some of the activity we had earlier in the year. if you look at china, over the weekend the big news was how much debt they are taking on and how little they are actually getting in the form of sustainable growth. today a new story out they are cracking down on the commodity frenzy. i want goes to show you if you create stimulus to boost markets and try to control where the money goes into which markets it's an exercise in futility. it isn't much different -- we question the communist model. is ours much different? is mario draghi's much different? i heard the discussion would the markets be a whole lot different if it weren't for fed. who knows. all i can tell you is that to have this much meddling by central banks and then wonder why the market is having such
anxiety, but in the end markets will do better on the took side and rates are breaking out almost no matter what happens. the outflows of some of these fixed income etfs maybe it's a rearranging of the deck chairs but it's coming one way or another. >> we talked about that etf stuff. it's not good to fool mother nature and that was a commercial and the central banks around the world are playing with the markets. they are trying to drive everybody into risk assets and you know what? that almost never ends well just nobody knows how it will end. that's a little scary. >> ron, there's conspiracy theory that's playing out. it's hard to argue with it quite frankly but the central banks in an attempt to stimulate inflation are using the commodity markets.
china is now known to have over 80 tankers lined up to continue to build their reserves on the oil market which explains some of the buys that are still in the oil market. the refining is picking back up. you see extraordinary trading volume happening, rebar, flaxseed. bizarre places. in order to create the demand and create the inflationary pressure to lift, now you have the bank of japan making the announcement they are in the top ten holder list of 90% of the equities that trade in japan. they continue to buy their stock market. that is market manipulation. that cannot end well. >> i think flaxseed is the future. but ron, that point on oil, you know we have, of course, some big moves coming out of saudi arabia. what do you do here if you either try to make a call on where the price is heading or are you avoiding the energy
space entirely? >> so the two of you guys, both of you are remember around february i said mlped are so damn cheap and you both said you're nuts. remember? they are up 45%. >> great call. >> you made me a little worried. but what die say? anyway the truth is they are cheap. not cheap any more. oil is not cheap. they came back. there's a lot of supply. you just don't play heavy in that. we play the mlp because a lot of our clients we're advisors. they needed the yield and it's tax advantage. otherwise we don't own oil. i think where you got to go, you got to look for where are things anywhere near cheap. i think the biotech's and otherwise stay with the multinational large cap. we should have been at 3%, 4% in emerging markets this year. that's okay. we should be more in europe. don't mind. it's fine. stay in the u.s. and be safe.
>> very good. got to go guys. those of you who have drinking games waiting for mention of flaxseed this was a red letter for you. your ship finally came in. thanks guys. let's get to saudi arabia's multiyear plan to shake up its economy and reduce its dependence on oil. we have the map ready. cnbc goes to riyadh tonight. >> reporter: hello. it's a total survival without oil. the deputy crown prince of saudi arabia, the son of the king says it's possible for the kingdom to get there as early as 2025. he released his details about the national transportation strategy, a plan to get this country diversified away from oil revenues. he's basing this plan on $30 a barrel. doesn't expect that oil price to go below that or at least not very much. he also said he's going about this in a different way. he says as part of this ipo of
saudi everybody a ramco, it could be between $2 and $3 trillion. about that ipo of aramco they are valuing that above $3 billion. so very bold plans. they said some interesting things about the defense sector. this country is the third largest buyer of mega defense projects from the united states, from europe, particularly from the uk as well of these massive defense projects and basically what they said now is going forward they want to be buying at least half of everything from local suppliers here in saudi arabia. so that's pretty big news for the defense industry in this country or the bourgeoning defense industry in this country. one thing we didn't hear earlier from the crown prince, a lot of speculation whether or not they would allow women to get behind the twheel drive cars.
there's been so much over the last year and a half how women have to be a bigger part of the workforce. but there's no news about getting them behind the wheel. they said this is not a religious issue, it's a societal issue and will move forward when society is ready. >> thank you again. it's not just about what they are doing in the oil industry. this is a much broader set of announcements. >> big time. that's for sure. >> dow is down 73 points. s&p is down eight. the nasdaq is down about 20 points. pretty much exact same. >> everybody is down a like amount. >> while you were gone last week a lot of different behavior. the nasdaq in particular was higher. again today everybody down. >> if you haven't heard valeant pharmaceuticals has named joseph papa as ceo. we'll look at whether he has what it takes to turn the company around. >> we'll discuss what could be
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. you see both time warner cable and charter communications trading up about 3.5%. the acquisition has been approved by the justice department and the sec chair is recommending approval. the approval does come with conditions, such as not limiting access to streaming video or imposing prices and data caps based on usage. time warner cable is due to report its quarterly results. >> valeant hiring joseph papa as its new ceo. meg terrell takes a closer look. >> reporter: their hearts. this of course did come out last week that joe papa is moving over to replace mike pearson as ceo of valeant sometime early in the may. if you look at the shares of both of these companies, valeant is really down slightly, not
really reacting a ton. they acted pretty positively on friday. in terms of valeant it's r reinforcing whatever pre-conceived feelings they had about valeant. folks who were bearish are saying does he really have the right amount of experience? is' turn around guy or a guy who just knows how to do a lot of acquisitions which isn't the right strategy for valeant. people who think this is an inflection point they say this guy has a lot of credibility, can steady the ship. if you look at perrigo shares. they are losing papa as their ceo but warn what will happen with their earnings and people are taking that's a big problem and models its growth going forward. >> just thinking about, you know, if euro receiyou're josept do you do? do you say we'll hang on the assets we have and become a more
boring company or does he see value the approach valeant had and will he try to salvage that. how much larger has the drug pricing market turned against them. >> reporter: that's a great point. the fact that one of the things they cited in lowering their guidance was this new pricing environment. it's interesting that the ceo is going to valeant which some could say was one of the initial sort of spurring companies of this issue of drug pricing. on wednesday there's a drug pricing hearing on capitol hill focused on valeant's business model. so the fact that this is affecting the rest of specialty pharma, this is interesting. >> by the way before we go the next topic with you, meg, kelly has paid me good money to mention she's written another article about finding value on valeant. check it out on her spark column on cnbc.com/the-spark.
meantime, meg, sarept ara, can bring us up to date on that. >> reporter: there are hundreds of patient advocates here just outside of washington, d.c. right now the public testimony is going on. there's almost unprecedented amount of time be a lotted to this for 52 speakers, most people very passionately pleading for the approval of this drug. muscular dystrophy is a -- this drug was from a trial in 12 patients. fda say there's not enough data to know whether this drug works.
i spoke with a mother of two boys who has dochenne. >> that's essentially the claim that the fda is making at this point that our boys are doing well because they want to be doing well. what does that say to the boys that just stop walking that they weren't trying hard enough. that's why they stopped walking? we're insulted. angry but we're motivated and we're about to take on two and a half hours of real expert testimony. >> that two and a half hours is was going on now. you feel the anger in the room. what we'll have at the end of the day a vote from an outside panel on whether that data is there to support approval of this drug. fda is set to decide by the end of the day. the stock is halted today. >> meg, does ito like the fda is turning away from this decision. big gap in those shares were on these advisory opinions that
sounded like, to your point, they are just going to take this cautiously and it's been a year's long drawn out process. what happens if they don't get approval? >> reporter: it's been an extremely long run for sarepta and two other drugs that have hit blocks at the fda recently. folks are concerned, the wall street community is pretty bearish on whether this drug gets approved and people in the community are very concerned that if this drug doesn't get approved kids can't take it any more even on an experimental basis. >> i think i heard a huge cheer behind you in the auditorium. i wonder what that's about. maybe a new development. >> thanks, meg. see you later. meg terrell there in maryland. let's head to the break. 40 minutes left on the trading session with the dow down 74 points ahead of as about week of
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welcome back. keeping an eye on markets here, all down about .2 of a percent. dow is down 72 points. gold was lower. camera makers inventory levels nearing all time highs, those shares are down 9%. gopro's acquisition is one yankeely to attract new users. >> xerox is trading lower. maker of copiers and printers cut it its full year earnings due to competenexpenses to its break up. >> and wynn resorts highlighted
the risk to gambling. >> argentina making a return to international capital markets. kay kelly joins us with these stories. welcome back. >> good to be back. it was an astonishing thing that argentina did last week, something unthinkable a few months ago. it raised over $16 billion in the public bond markets in a deal reportedly was well over subscribed. bond offer was successful enough the country paid off a group of long standing creditors it can fund its deficit which 18.4% of gdp and avoid further borrowing if it wants to for the rest of the year. argentina bonds rallied late last week and its stock market moved over 2% in the last week although in negative territory today. that spike comes after bond
holder battled argentina in court to be made whole. it got paid $2.4 billion it was owed. and paul singer said the back and forth between argentina and the hedge fund was a commercial dispute not an ideological war. it marks an important precedent for the rule of law. >> interesting as well that this is one -- we remember when the ships were seized off the coast of africa and all of that. >> yes. i understand that argentina is a different country now it has new leadership, trying to move in a more business friendly direction. people have been burned before trying to get their hands on this debt. >> nathat's absolutely true. there's a long series of disappointment. but the new president has said he's dedicated to change for the better, to getting the economy in order among other things. a lot of people are bullish
argentina medium and long term if some of this wood were chopped. they have vast oil reserves. a lot of people are excited about the national oil company. it's the number one holding for hedge funds. and, there's a lot of promise once normalization returns. >> is it -- market perception is very important for argentina to be able to pull off this bond offering. is it simply the new leadership that allowed that to happen? >> you know, i honestly think so. i think the administration had almost a marxist sort of view. they were opposed to paying out in fulton dollar on these bands after everything the country had been through. to be fair there were a lot of challenges, a lot of joblessness, a lot of poverty. they are not wrong they are in a tough position to pay out to any credit tore. optically speaking they are offended these hedge funds were
doing the asking. interesting questions though as singer points out. he's saying the best thing we have is the rule of law and court system in order for credit tors to feel comfortable to take a risk on these emerging markets. that's a fair point. that said it was really a brutal process for the country and, again, the people to some degree was held hostage to this tussle. >> a different story when you went out on maternity leave. >> there was hopefulness in the credit market but at the same time no real moves have been made and this was back in january. so i think even people on the bond market side are pleasantly surprised. time now for cnbc news update with sue herrera. the u.s. air force has flown in two f-22 raptor fighter jets to romania to deter russian intervention. they landed today at an airbase
in southeast romania. a pennsylvania appeals court has rejected bill cosby's attempt to halt his criminal case because of what he called a decade old deal not to prosecute him. cosby is facing trial over a 2004 encounter at his home with a then temple university employee who says she was drugged and molested by him. prince is proving to be just as big a chart topper in death as in life. his music is among the top slots on downloaded charts on amazon and itunes. there were 2.3 million prince song sales in the three days following i had death. general electric is at it again. the company that once used grilled meat to make a point about science has engineered its own brand of hot sauce. ge is manufacturing 1,000 small bottles as a way to draw it's attention to its technology prowess and helping people
understand the science behind its innovations. it's called 1032 because at 1032 calvin matter creases so exist. >> that's the temperature, if you remember your physics. how hot is this hot sauce? are you a hot sauce aficionado. tabasco which is the most famous is measure -- they measure hot sauce in heat units. tabasco is 3,500 heat units. one of the peppers used in the ge sauce is 2.1 million heat units. >> now where s ira cha falls on that list >> hotter than tabasco. this is one of the hottest hot sauces out there. hot sauces are very cool right now. >> hillary clinton was just talking about hot sauce. >> exactly. they are trying to get millennial scientists. they want the young technology
entrepreneurs to come to ge instead of going to the start ups. i'm not kidding. they did it last year. >> because their commercial campaign we're working on industrial machines and hot sauce. >> and hot sauce. >> thank you, sue. >> see you later. we have a news alert. on the golden state warriors and ste steph curry. >> curry has sprained his mcl and will be out for two weeks. back to you. >> a sprain is better than a tear. still painful. >> there were rumors or reports on twitter he might have done a worse injury. re-evaluated in two weeks. let's take a look at shares of under armour the shares
themselves haven't moved that much. down 1% on the session. >> let's head to the close. we're coming in the final half hour with the dow down 65 points. s&p right now down about 8. a leading trader will tell us what he's watching. newspaper consolidation in the works. how and why coming up. unlimited data from at&t means you can stream it all. like that anthony michael hall movie where he fights with the girl. the one where he gets rejected by the girl. even stream the one where he creates the girl. with unlimited data, you can stream all the anthony michael hall movies you want. i wonder what he's up to these days maybe he's shopping in an at&t store? get unlimited data and your fourth line free when you have at&t wireless and directv. plus, up to $650 in credits to help you switch.
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. welcome back. this has to be the biggest gainer on the street, tribune publishing up 52% after gannett offered to purchase tribune. a 63% premium over tribune's close on friday. tribune publishes papers like the "l.a. times," orlando sentinel. gannett's properties include "usa today" and the "detroit free press". gannett is the biggest print and digital news company in the u.s. and clearly it wants to get bigger. >> more consolidation across that space. less than half an hour to go in
the session. it must be a central bank week because all the indexes are up by the same amount. >> i think we'll look for more fiscal stimulus. >> down i should say. >> bank of japan will be the one that we'll focus on. they have to continue with the negative rates. we're looking ron fournier fiscal stimulus. we had some bearish numbers out of oil. you expect oil to be down much more than a dollar based on if kuwait will increase production by almost doubling their production, iraq by a million barrels, saudi arabia still producing at high levels. >> basically you think it's a lot of bearishness but expectation of central banks delivering. >> only 21% increase that we're looking for a june rate hike here in the u.s. we're seeing money managers chasing the return and that's what's holding the market up. friday was an example where earnings didn't dictate what the market was doing.
we should have been down a lot more. >> we'll let you get back to it. thanks a lot. we got 24 minutes left in the trading session heading to the close with the dow down about 60 points and still ahead the history making golden state warriors dealt that rough blow last night with the injury to steph curry. we'll discuss the impact. a curriless playoff it could have on the league, the sponsors and everybody. but first apple earnings set to be released today now coming out tomorrow. so we'll preview what may be in store coming up.
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we've been watching the transports here this year. they have been about a bellwether now for some time. again today they are down 96 points, 1.2% when the market is down less than half that amount. it's not the kind of activity -- feel better if the transports were up if the market were lower. >> and reverse correlation with oil is out the window. express scripts one of the worst providers in the s&p this year they have earnings coming out
after the bell. lukewarm numbers could cast more doubt. let's get a preview. we head to bertha coombs. >> reporter: the express scripts story is really a case of tough price negotiation being a two edge sword. express scripts prize itself on being hard on drug companies, to get the best price. now they are under pressure from anthem their biggest customer for not giving them some of the benefits of that tough drug pricing. this afternoon we'll be watching for $1.22 on the bottom line for first quarter earnings and about 25 billion on the top line but what analysts will be listening for when they have their conference call tomorrow, whatever commentary is put up this afternoon is the situation with anthem. anthem is suing express scripts for $15 billion in damages claiming that express scripts has overcharged them on their contract. anthem represents about 16% of their revenue. so when you take a look at the
year-to-date chart you see a cliff happening in january, when this dispute went public. i want has cost anthem so far about $4 billion in market cap but it has a lot of uncertainty as to whether anthem is going to continue its contract with express scripts. it runs to 2019 but in that lawsuit anthem wants to terminate it. express scripts has counter sued. again this is likely to be a very big topic on the conference call. we'll see what they say in their release after the bell. back to you. >> exactly. thanks bertha. again, we had perrigo talking about drug pricing trends turning against them and lowering its guidance this morning. we look forward to that after the bell. 18 minute left to go here. the dow down 48 points. a little bit off levels earlier. s&p down six. transports are down 98. nasdaq down 16. we'll take a break, come back and preview apple's earnings tomorrow and whether they can turnaround the
struggling tech sector. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests.
the tech giant outdated. >> translator: in china you can see apple has already begun to lose the rapid sales growth momentum. one of the most important reasons is that apple's innovation has become extremely slow. for example a month ago apple launched the iphone se. this is a product with a very low level of technology. they launched it in order to grow their customer base in order to increase their profit margin. >> well, let's get both sides on the apple equation right now. kevin o'leary is our resident bear and david pearl. kevin you sold your shares in apple last fall for different reasons than the fears that maybe they lost their fast ball. what do you think about this ceos idea, though, that they are out of date? >> i'm more concerned about apple as a growth story going through transition to a value yield story. you never want to own a stock
during that period because it has to find a whole new pe. apple is doing that right now. if i think about the product itself and focus on the metrics and the difference between what apple was three years ago in iphone innovation because this is a one product company, what happens with the 7 and the advance in the fall of new products in the iphone determine how this will work out because this quarter is a throw away quarter. i'll say one thing. i constantly try every product in the market. i just got the samsung 7 edge and i've always felt android was a lesser product interface. i'm sorry, they solved that problem. this is a hell of a product. it's going to give apple a hell of a run in the next couple of quarters and that's another problem for the company. >> so all that said, david, make the case for the company. >> yeah. it's not a hardware company it's an eco system.
they provide a simple elegant solution to your problem. back in music it was the ipod allowed to you carry music and it wasn't the hardware it was the fact that they had the operating system and the itunes store. now with the iphone it is ios and the app store. and while android clearly keeps trying to catch up, user satisfaction of ios is far higher than android. that results in users staying with apple products for years, eight to ten years. so once people are in the eco system and they built up this knowledge and understanding of how iphones and the app store work they don't leave. so it's just a question how fast they upgrade backing to innovation and new products, the upgrapd upgrades in the iphone and services. apple is 10% services. they are doing apple pay and music service and it will continue with tv. >> kevin, what do you think?
he put a lot on the table there. you're saying it's a one product company. he's pointing out to the different applications, apps and a whole eco system. >> i agree. there was a lot of catch up that android and samsung had to do. but my point is they not only caught up they passed apple. you haven't seen the impact of that yet. get your hands on some of these new products. i used to not like the android operating system for all of those reason. i'm sorry, i got to tell the truth. they passed it on features and interface. there's tons of applications. i can't find one on apple because i got both devices, i use both every day. i'm sorry right now this horse is winning whether it manifests itself by the end of this year in increased market share you got to tell it what is it. it's not a compelling story now for the investor. they use debt and return on assets is slowing and margins are slowing. i don't see any reason that this
stock is going north any time soon. >> david, teen software case still relies getting in front of people somehow whether it's the phone, whether it's the watch or its computers. or the tablet. obviously they have compelling products in every category but can they continue to sell those products that ultimately what they leverage in software. >> their market share versus android has been stable for years even though they are higher priced and results in higher resale for your old iphone. if you think of the apple watch as an example, the phone took three iterations to be successful. the next apple watch will not need to connect to the phone to do things. we think that will give it a real edge. then back to the stock, remember apple is selling at 11.5 times earnings and the stock market selling at nearly 17 times earnings. what that tells sue there's huge disbelief about the stock. very low expectations, low bar
and this is a company with almost $200 billion of cash. they can buy back a lot of stock, raise their dividend. stock is clearly undervalued if you believe it's not shrinking from today onward which we don't. >> thank you guys. good to see you. see you later. let me tell you, art cashin stepped by. the market on closed orders on balance to the buy side. we'll see if that brings the market back here. we're down 58 points on the dow. joining us now is steven gallagher. we went a whole hour and only mentioned the fed one time. how times have changed. you don't expect any change. >> not this week. what we could expect is signalling and less dovishness for them to come out later this
year. maybe june. certainly less dovish than maybe the market anticipates. >> how important is the next chapter here because as we heard earlier perhaps it's the only reason these markets haven't done worse. at the same time everyone is making the case we need more fiscal policy. you look to canada. they are trying to booth growth. how much can monetary policy deliver here. >> no question monetary policy can't be much more to stimulate the economy. they are at limits. they don't like to say that. they like to encourage us to believe that they always have tools in the tool box. right now we're not looking at them to stimulate, we're looking at them to raise rates or to start hiking and how gradual that path may be. everyone thinks it's a very gradual path but they think that's twice this year and the market is no rate hikes this year. and every rate hike is a market disruption or market turmoil so we have to be very watchful for that. >> you have to navigate that as
a money manager as well. where do you put the money network with. >> not a lot of safe places. it was easier a month ago. the markets very well priced right now. you got to go in defensives. defensives are very expensive. i look very short term defensives, maybe in the telecom sector. an area that hasn't been played up very much. we still see profit growth. that's one of the areas in this market, you know, q1 year-on-year profits. longer term i'm still a health care fan as a defensive strategy. we shied away from it because of the elections and what clinton policies may do to health care, so i think the fact we shied away from it. it's a value for us in terms of a longer term play. >> after the election? >> before the election. >> thanks, steven. good to see you. we'll take a break. come back with the closing
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the dow or the market will rally into a fed meeting but that has not been the case today. but it has come back a bit from the lows set this morning. crude oil continued lower. that has, after recent rallies, $40 was the number to watch, bob pisani but it's come off those highs. the story of the day for me is the offer by tribune organ n ga for tribune. tribune media group owns the l.a. time, "chicago tribune," "orlando sentinel" amoeng other things and on friday its market value was $238 million. >> it's a microcap. >> that tells you what's happening to the newspaper industry. express scripts will be one of the companies we're highlighting after the close with its earnings report.
>> that tribune game is all about scale. combining back offices and making it easier and cheaper to publish. the printing presses are a fortune to run. that's a liability. having a printing spraes liability, combining those operations will help. you were speaking about oil here, pioneer natural resources will be reporting after the bell. this is one of the big shell players, eagleford in texas, big loss, 75 cents. this may be the bottom. that's what everybody is looking for. whether this quarter is the trough in earnings. i think we want to hear a little bit about what's going on in production growth. they are anticipating their production growth of oil will grow 10% this year. can you believe it? you would think they would cut it -- >> assuming the price will go higher. >> their cap x spending is still $2 billion. people want to know if there's any more cuts in capital
expenditures and whether production is expected to grow roughly 10% this year. the big thing, is this the bottom here? any sense at all that production will increase or oil prices will expect to be up in the second half of the year and if they are talking about $50 or $60 at the end of this year definitely there's the bottom. >> but then the question is what does that do to the equity market because the correlation is not valid. >> these stocks have moved up in anticipation. the second half of the year you'll see oil prices certainly above $40. also remember on friday or thursday excuse me exxon is reporting. rex tillerson was saying if we get oil above $40 you'll see production come back in the shale areas. >> saudi arabia begins to diversify its economy, $2 trillion. maybe that signals a bottom in the market. >> that i want to see for
aramco. there will be a fight for that listing. i think that's over. >> thanks bob. see you later. ringing the bell at the big board. empire startup. that's the first hour of the closing bell with the dow closing down about 25 points well off the lows. stay tuned now for more close bell with kelly and company. see you tomorrow. s&p was down three. hanging in there. let's call it 2087. nasdaq down to 4895. coming up we'll have nikki sixx talk about how he'll take on
congress and youtube to fight for the future of artists. we've looked like it was almost problematic trading. everything was down the same amount and back the same amount. is that all a central bank effect. >> just a pause in front of a very busy week. we have very high volume in terms of earnings and we have big earnings like proctor and gamble, like amazon, like a lot of big companies. we're waiting. we also have the central bankers, the fed, the boj. then you also have to step back and see what does oil price dose. they were down today. you had this risk off feel to the market today. but it could easily turn the other way if we get some good earnings from like pioneer or other companies. >> we'll hear from express scripts after the bell.
the focus is on apple. after we saw the declines in microsoft and other names, apple is not the best barometer but still a huge part of the index. >> it's a widely owned stock. it's going to be a tell how the consumer is feeling for starters as well as how stock investors are feeling. i agree with what stephanie said. there's a waiting in the wings. i was literally just on the phone with somebody saying this almost so far felt like a vacation week. >> in some ways there was. plenty of spring breaks happening. >> new york state, public schools, this is the week off. it's scattered throughout the month or two. people are on vacation. people are making moves. they want to know more about the fed. they are looking to japan. they want to get into these earning details. >> one of the other things this morning, perrigo, stephanie, its shares were down because the ceo is leaving to go run valeant. but it talked about drug
pricing. that environment has changed. changed for the worse as far as they are concerned, more difficult to pass on any kind of price hikes. how does that ripple through one of the most loved sectors. >> perrigo is very strange. had such a terrible quarter. then the ceo leaves. it was the trifecta of bad. a lot is discounted. you want to pick your spots. if you go to health care i like the hmos. united had a great quarter. have to hear about this m and a and approval from regulators. biotech sets up pretty well for the second half of the year. this group has the political overhang and you have to know that if you invest. >> speaking of m and a this tie up between time warner and charter. what are the implications there, do you think? >> you know, people are playing
this market at such a high level macro that people aren't even looking. we talk even specialty pharma. then you go into cable. then you go into streaming. people either care about it was the fang stoncks, utility plays. i rotate in and out of them. it's that simple to me. >> how long has this been going on, would you say? >> this has been going on, probably for the last year or so. but when you really think about it this week why were the volumes so light? everybody is focused on central banks. that's what everybody is waiting on. that's why you see utilitys come back in vogue. >> is that reflective still of what's happening with all the central bank stuff? >> definitely. i think people are still searching for yields. when you get down to brass tacks on it where will you get any type of return on your money and
when people throw out utilitys, you have to look and say where will i get that. i got a stock that trades like a utility. >> let's talk about japan's experiment with negative interest rates. it's meeting is coming up this week. a lot of central bank activity. on that note let's bring in jeremy schwartz. good to see you. you know we were talking about crowded trades. held jobs japan being one of them and one that totally moved away from people when the yen was stengthensing. we have a big meeting coming up. what do you see happening? >> japan is the epitomy on that and japan is selling off on the strong yen. they went to a negative interest rates. they are surprised by how the currency has reacted. sort of a flexible approach. last week you're hearing stories
they will make banks have funding. that's something you'll see more this week, banks can access, like the european banks have negative funding. they will step up their asset purchase program. whether it's this meeting or next meeting they don't like what's happening with the yen. >> have they given it enough time -- doesn't it take time to have massive amounts of policy implementation into the system to see results. i know the yen -- they are not happy with. but i think just seems like yesterday they were putting in new plans in place and now we have other plans coming. we don't know what will work when. >> mario draghi tried to say that. he said we just announced so many new mers. japan when they went to negative rates it went so far against what they expected. central banks are tools. we have more tools. we'll address your concerns. so i think they might do one more negative rate to say we think it will work.
we'll do it in a way it addresses our contention. giving banks lower funding at negative rates and hopefully stimulate. >> you guys have to talk investors off the ledge. >> i talk about japan from equity standpoint. it's one of the most attractive equity markets. the u.s. has 4% spread. they have negative bond yields. earnings yield has equity basket. so i think that's twice as attractive as u.s. equities. so the search for yield with negative yields over there on the ten year bond will shift more people to equities and still attractive. >> is that attractive long term option or temporary? how do you look at it? >> the stocks are real assets. exposed to the global economy. not just about japan's local
economy. i think it's long term. japan's equity market is a big equity market and it has a much -- half the price as the u.s. >> i also wonder, so we have some kind of fed hikes coming if you believe basically what the officials are telling us whether or not the market believes it. how is that gap going to affect markets back here. if we're continuing to move towards interest rate hikes and everyone else is doing -- >> forget how it affects. if you want to pull the dollar in, we all know the effects of s&p 500 companies and their exposure overseas. but i think it's easier than that when you look at our treasuries. you look at our treasuries and our fed fund rates. if you close that gap everybody is worried about the inverted yield curve and pushes us into a recessionary environment. but japan can maybe go in another one, i think the fed maybe they want to get one in before brexit. it would be for me i thought they should have never raised in
december but if you look at where they are kind of painted into a corner right now with the market being where it's at w-the dollar staying where it's at, the fed might want to raise one more time. >> if that's the case, whether it happens sooner or later the dollar index is back below 95 today. it was flirting with 100 before this period of weakening. could it go right back up there and what exaimpact would that h on companies? >> it's more of a consensus dollar weakening trade. that's why energy and industrials and cyclicals doing well. the onus is on economic data that comes out that supports we're growing and that we can handle a strongle dollar if it happens because better underlying growth. this whole thing about japan, ecb it's creating a lack of confidence around the world. >> you mean general uncertainty?
>> right. we have no idea what will happen with the fed. >> the markets are at around all time highs. i think you almost have to ask yourself and this is what i battle with, is this their perfect scenario? have they mastered dollar trade? have they mastered where text markets are? it used to be sell yen buy equities and maybe that's a little bit off now. i wonder right now when you look at the s&p just a whisper away from all time highs have they been successful when we try to figure out how much more clarity can you put it. >> traders have become gun shy when it comes to unpredictable central banks. certainly macro traders but others too. look at the swiss miss last year. businesses were ruined on that. at this point people are hanging back. they don't want to be caught on the wrong end. >> that's why, jeremy, if for some reason expectations are very high, bank of japan doesn't
deliver in its meeting this week what happens? >> i think people expect them to do more. you're going see them do more on the fiscal skied. that's one of the big things. people are saying central bank is out of tools. they will have valuations that are supportive and more action from fiscal side and bank side. >> let's get to courtney regan. >> reporter: we want to bring you the earnings for the container store. i'll remind the viewers and the listeners this is a market cap under $300 million but nevertheless shares are popping after hours, up nearly 17% here, reporting earnings of 20 cents in line with estimates for the container store's fourth quarter. slight beat on fourth quarter revenue, beating $231 million for the consensus estimates. sales stronger. consensus looking for a negative
4% for the comparable sales. that's better. looking forward for the guidance for 2016 the revenue guidance is below expectations. but the earnings guidance is within to slightly better than expectations. as you can see shares are popping. one other thing i would note the ceo also points out hiking efforts when the savings program cutting costs in a comprehensive manner which includes company wide salary and wage freezes, 401(k) match freezes, reduction in payroll and extensive efforts to drive costs out of the business. back to you. >> wage and salary freezes. thanks a lot. those shares up 17.5%. any thoughts? will this bolster the market? here's a positive release. >> i don't think they've met a number an expectation. they will get an expectation that was solo. the issue from a fundamental point of view they have to spend
a lot more money and they are re-organizing and restructuring and lot of that money will be used in the second half of this year. you can't make a margin improvement case until next june. even if demand comes back, the operating leverage store is a hard one. >> i ordered two folding iron book shelves from the container store. no assembly. earnings on express scripts going to the broader backdrop, waiting for these numbers. bertha coombs has those. >> reporter: express scripts numbers were in line of $1.22 a share. it's actual revenues were slightly shy of expectations at about 24.7 million. the street was looking for slightly more than $25 million. they are raising their guidance and in part because they are amortizing their contract with
anthem more quickly than they did. so they are doing a different accounting for the contract with anthem. of course the back story anthem is suing express scripts and wants to terminate the contract because they feel that express scripts has effectively been gouging them, overcharging them for drugs that it purchases for their plans. meantime express scripts has counter sued, but they say in their release that as a result of recent events regarding our discussions with anthem, which culminated in the filing of a lawsuit on march 21st we felt it prudent to consider likelihood of either nonrenewal or renewal on substantially different terms. the likelihood of that had increased. so beginning in march they started amortizing their agreement with anthem more quickly over the life of ten years. they originally looked at it over 15 years. that agreement is slated to end in 2019.
anthem, of course, is suing to terminate it earlier. you can see the stock is either side of unchanged. we won't get that much more color here this afternoon because the conference call is not being held until tomorrow morning at 8:30. back to you. >> thanks so much impeach just to reiterate revenue a little bit light. there are about to ungodergo a o transition. >> i think unfortunately for this company the anthem contract, one way or another, has to get resolved for this stock to work. i think the numbers are going on. there might be an accounting change. they are doing more in terms of buy backs to get those numbers up. to invest in this for the long term you earth have to look fast anthem contract. . but you have to glue that decision for the stock to work. >> any closing thoughts? >> the overall market you have to wait for the rest of this
week to see where everything kind of pans out. but i would also say if you get a yield play at a discount you want to continuously invest in those because those have proven the only thing that you can bank on. >> utilities and energy. thanks for joining us. steve and the rest of the crew are coming up at the next hour talking to dennis gartman why one group of commodities is going wild. we'll discuss whether breaking up the big banks would be good or bad for the shareholders and the economy. the results of a new report are after the break. plus sick snikki sixx lobbying president obama and others to make youtube pay them for their music videos. you're watching cnbc, first in business worldwide.
annual gdp. now despite that staggering number, there's not strong evidence that megabanks are an inherent problem for the economy. welcome fred. $20 trillion is a big number. why did you lump fannie mae and freddie mac and the fed into this particular calculation. >> what we're looking at is concentration in terms the of the u.s. financial markets and they are concentrated like never before. it's not just the private but the public sector too. fannie mae and freddie mac were to be dismantled but here we are seven years later and they are very much part of the federal government. >> what are you getting at when we talk about concentration. is the problem of financial sector is bigger than our gdp and whether it's public or private or a different point? >> the question is historically the united states we had less concentrated financial system than the rest of the world. that's been pretty good for the united states. there are obviously a lot of
historic dabebate about centralized banks. we have the most snag significant situation. big four banks controlling 50% of the bank assets. but the real issue we look at when we dug in is saying there's not necessarily a big problem with big banks the question is unprofitable big banks. >> just a quick question. when we think about the political discourse we're seeing in this election year and debate over the risks associated with the large banks isn't this sort of a too big to fail question and a concern perhaps there's not a risk in the present economy but if we hit the skids again and some of these banks were to require a federal taxpayer bail out then you have a whole series of cascading issues. that something you're looking at as well? >> yes, of course on too big to fail. this is a different issue. this is a growth issue. when you have concentrated banking institution and huge institutions with 10% of the banking estimates not able to grow because they have to
control capital isn't that slowing our growth? when we look globally isn't this concentration, couldn't it be slowing growth throughout the globe not just the united states. >> what about the regulatory problem or issues or overhang. these companies are very big. i agree with you. the regulation that these companies have had to go through for some many years and the capital that they've had to raise ongoing doesn't that at least put them in a better position from a capital standpoint and eventually returning that cash to shareholders which is a nice concy allocation? >> yes. it's really too big to grow. i think if we look today, we look at wells fargo a company that has raised the capital, stronger than ever, makes its cost to capital continues to grow. i don't think anybody can find much problem with that in the economy today. on the other hand when you look at citi or bank of america still struggling can't make their cost of capital after all these years
that's the real issue we raise. >> there's evidence that these banks are putting their increased deposits to work in terms of making more loans or bigger loans. >> there is. however if we look since the financial crisis smaller banks have been growing loans much faster than the larger banks. that raises the second question the growth question. what's going on today these big banks because of regulation and lack of profitability not growing loans, not growing the economy the way we would have if we had a more fragmented banking system. >> you could read this is the problem with big banks they don't need to be regulated and broken up, they need to be less regulated and more profitable. i'll leave that for people to argue about. >> hike hillary and bernie sanders. >> exactly. intriguing report. united airlines' ceo is the latest to buy shares of his own company. should you follow moves of ceos.
♪ we built our factories here because of a huge natural resource. not the land. the water. or power sources. it's the people. american workers. they build world-class products. and that builds communities. and a better future. for all of us. because making something in america means so much, to so many. weathertech. proudly made in america. welcome back. you can call at any time ceo seal of approval. united ceo oskar munoz is buying a million dollars worth of his company's stock. this after jamie dimon bought
$25 million in his bank's stock after the loss in february. >> there are a lot of numbers. can you go way back. slice it a lot of different ways. one of the slices we did among many we looked at a million dollars or more for ceos, not penny stocks, not these junky companies and you look back from 2003. about a 6% return in the first six months. but most of that return was in the first week. so you had to jump on it fast if you wanted to get that return. if you look at the situation like jpmorgan and jamie dimon he made 20%. he wasn't the only financial executive. there's about 16 ceos did this. it's not unique. if you look beyond a million dollars we expanded it out to $250,000 or more. 800 transactions going back a decade. it's down a percent compared to
the million dollar guys. the more they spend the better it seems to do and the final data point if you look at the real big spenders the guys that bought a lot of stock in companies that they owned at least 5% of. so they were the ceo and big owners. there's the data right there. average excess return of 6% annually relative to stocks with a similar risk profile. >> how much of this is a symbolic value and the markets saying i'll go with the ceo. how much is it the ceo having terrific timing nuclear program is all legal. they kind of have a sense if nothing else of the business arc and the company. >> you would assume the ceo of a company knows more about that company than the rest of us. i think the pop based on the symbolism that's that first week. 3.5% in a week but 2.9% in a month. then the six month numbers, the annualized number that's clearly
timing, knowing how the company will do going forward. look at kent lewis, bank of america back in '08, '09 he bought a lot of money, doubled it, almost tripled it because he got it at the market loss. >> i'm surprised to think that ceos are good in a way at either, you know, knowing when the price is too low. i know it seems crazy because companies themselves don't show all the same kinds of trends. >> that's true. i would say that people buy stocks for one reason. they sell for many, many different reasons. but they buy for one. they see real value. their time frame might be much different. their dollar amount might be different. i use that as a gauge. i don't worry about the sells as i get excited with the buys. >> generally speaking when they buy it's after it has dipped for a while. so they are saying this is the bottom and i want to put in real money not just compensation income i was guesting paid by
the company to do. >> now they hit the bottom we give them a term too. a little bit of celebrity power. thank you. time now for cnbc news update. >> reporter: here's what's happening. at least 11 people were killed and dozens wounded in a car bomb explosion in the predominantly shi'ite muslim district in eastern baghdad. the blast set fire to five other vehicles on a busy commercial street during the evening rush hour. it's the third bomb attack in four days in the city. hundreds of people rallied in raleigh to support a controversial north carolina law that limits workplace protection for lesbian, gay, transgender and bisexual people and restricts which bathrooms they can use. hundreds of advocates and parents who support people with a form of muscular dystrophy for a drug that treats dochenne
muscular dystrophy. one year ago today streets in baltimore turned violent. 1,000 people gathered for a march on city hall which turned violent as darkness fell. that's the cnbc news update. back to you. >> thank you so much. we'll look at whether the odds are increasing for a brokered republican convention now that ted cruz and john kasich appear to be teaming up to stop donald trump from winning. and later motley crue's nikki sixx getting youtube to pay for showing their videos. he's lobbying president obama to help out. he'll join us later on this closing bell.
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time now for your rapid recap. stocks today modestly lower across the board but closed well off the lows. at one point the dow was down 150 points. closed down about 26 as investors turned cautious ahead of a huge week of earnings and global central bank decisions. oil the real loser. fell 2.5% settled under $43 a barrel for wti on report oil inventory surged last week. charter communications proposed
acquisition of time warner cable approved by the justice department. the chair is recommending approval from the sec. the approval comes with conditions. those stocks were up today. they can't impose prices and data cap. gains of 4% for both charter and time warner opinion today's news from the campaign trail is gop presidential candidates ted cruz and john kasich are teaming up to make sure front-runner donald trump doesn't win the nomination. cruz is going focus on indiana, kasich on oregon and new mexico. here's what they all had to say about the apparent deal today. >> after discussions with the kasich campaign we made a decision about allocating resources. we decided to allocate our time, energy and resources on indiana. john kasich decided to allocate elsewhere. >> is that matter of resources. we are running a national campaign and we want to apply our resource where we think they can be used most effectively and it's designed to stop hillary
clinton from becoming you collr stock market they put you in jail. but in politics because it's a corrupt enterprise, in politics you're allowed to colluded. actually i was happy because it shows how weak they are. it shows how pathetic they are. >> all right. joining us now is kathy lynn taylor a republican strategist. along with robin winston democratic strategist and former chairman of the indiana democratic party. welcome guys. kathy, is there a point here? is it collusion? is it resources? will it work? >> most importantly i don't think it will work. look this is a marriage of convenience and we know those are not usually the best marriages. i've said all along this campaign thus far that you can't win by being against someone else. you need to win by being for
something. we're in a situation where america is angry on both sides of the aisle. elm are frustrated. we've had seven years absent of really successful job policy or national security policy and people are looking for a message and those who are giving the strongest message are doing the best thus far and the only person doing that with a very clear message like him or not is donald trump. >> what would you call this, robin? >> i would call it craziness. here in indiana you got people who already voted. 46,000 republican votes have already been cast. another 15,000 are out there right now with people absentee ballots in their homes. 15% of a vote in primary is done by people mailing in. 46,000 people have already voted. what do they do? go back i made a mistake. we don't allow that in indiana. that leaves people out in left field. >> just to state the obvious,
though, it just highlights the amount of rancor in the republican party and essential the party faithful may go to any lengths to block donald trump by any means. we saw a little bit of this with kasich and rubio earlier in the race. that was not surprising that rubio was deferring to kasich in his home state of ohio. in recent memory you have not seen one candidate secede one territory to another. ted cruz isn't somebody who has a reputation for playing nicely with others. >> you're exactly right. this is only going to divide the gop for a longer time rather than bringing us together. the best thing the gop can do sue night around a candidate and start to concussion ku to focus clinton. look this is like a football game, right. a great leader is somebody who inspires people to a vision and can get them to fulfill that vision. donald trump has had a great
kick off. he's brought in a special team, paul manafort hasn't he has to get to the touchdown. >> i see what manafort is trying to do, trump gets it, this is a little bit of an act and now he'll go more centrist. i'm curious. do you think your party could a less -- coalesce trump. p >> at the end of the day most americans want the same thing, we want jobs. we want a secure border. we want a secure future for children. we want the best education to help them get there. i absolutely think the party n coucan coalesce around a candidate. will it took like the way the gop did a year ago? it may look and feel very different. i think unity is on the horizon.
i really believe that. this is our chance to seize the day and really come forward with a message that speaks to people and speaks to women. >> what do you think, robin >> toothpaste is out of the tube. i don't know how you get it back in there. there's ads by ted cruz saying stop donald trump. we have ads with people saying we can't have donald trump as president. we had a contentious race between barack obama and hillary clinton and they made up and we won in 2008. this kind of rancor benefits us. it's great. >> thank you both for joining us. robin winston and kathy lynn taylor. we'll see how the coalition turns out. >> golden state warriors have to battle for the nba championship without steph curry. the basketball star spring his mcl in last night's playoff game. what the injury means for the
team and curry sponsors. tough fall. nikki sixx joins us live to discuss why he's calling on president obama to take on youtube. there he is. closing bell will be right back. 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. ♪
paying artist and asking president obama to issue an executive order to close a loophole to allow pay to be possible. nikki sixx welcome back. good to see you. thank you for joining us. >> how are you doing? >> let's start with what you're not getting from youtube. >> well, you know, first of all i wanted to be transparent, 6:00 a.m. has an album coming out on friday. we have tour. we're using the publicity that's happening behind that as a way to talk about issues that are going on. one of the issues that's happening is spotify and apple has figured out a way to pay artists more than youtube is. they are paying us sixth of what those other companies pay. our take on it is is really an investment in the future of music. we fight if artists can survive by making music, putting their music up, i love youtube, i use
google all the time. make it a fair pay playing field so artist kansas survive in the future. if we can't make music and make money what do we do. >> so you're saying youtube pays you about a sixth of what spotify and apple do. spot if i and apple are streaming your music. are you talk about videos here? >> the number one use for youtube is music. streaming music. and when they are putting advertising in front of those videos or even streaming music and they are paying a percentage of what the other companies are paying, it's not fair to the artist. now at no point do we want the fans to be punished. we don't want them to have to be punished for this. we want actually youtube and google who owns youtube to do the right thing. their motto used to be don't evil. they recently changed it do the
right in this. we're saying don't be evil, do the right thing, take care of music, all music and all how much -- music in the future. i can't really speak to that. it's been a growing experience for all of us. you know the internet changed everything, and a lot of people will say that it's destroyed music. we're not here to talk about that. we're here to talk about how to make it work. >> you know, we were talking internally this morning about how musicians and artists in many cases are innovating faster than these large companies are in terms of the distribution of their music. a lot of people self-distribute and individual media as well. i'm curious what do you think of some of the new service, title. that's at top of mine because of
beyonce's lemon ade. is that a model you see for your music. >> i can't speak about those models. i'm not that familiar with them as i sit here right now. i'm focusing in on this issue specifically. we use it all the time and i'll tell you a short story. i have a friend whose son is in a band and his son is barely starting to make any money playing clubs and the next step is for him to release his music and the father said how are you going to make a living? it's a young boy. i'll just keep making music. how will i afford to take care of your family some day and keep making music. that's all we're talking about. spotify and apple figured it out. there were growing pains but they figured it out. >> they were forced into the some cases. >> reporter: $500 billion, i think that they can build -- >> before we let you go what is it that you're calling on
president obama to do here. how could an executive order help change the situation? >> well there was a law passed in 1998 and that creates a safe harbor. hat law was launched before youtube was even launched. so in a sense youtube is hiding behind this outdated law. if you remember in 1998 we pretty much are a dial up. so things have really changed significantly since then, and we're just asking google and youtube to do the right thing and pay all artists what they deserve to be paid. >> thanks for coming on. really appreciate it. nikki sixx, you can check out 6:00 a.m.'s newest album goes on sale this friday and we'll see if youtube responds. steph curry injured his knee. word is curry will miss two weeks with a sprained mcl.
what this will mean for the warriors playoff hopes and ratings. tune into "squawk on the street," sarah eisen has an interview with phil knight. closing bell will be right back. a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. ♪ i could get used to this. now you can, with the luxuriously transformed 2016 lexus es and es hybrid. ♪
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pointing out its average daily production did rise more than expected during the first quarter. pioneer national resources has also registered production up 3%. >> quick comment, guys, on moving the shares here? >> well, i think it's going to depend on what the other companies report this week to see how the whole group responds. the stock was down today ahead of this report. they'll be ugly, we know that already, though. >> two quick notes on that. this, of course, was the mother fraccer as per david einhorn last year. the other thing, though, this 50% hedge, very interesting. a lot of companies have been hedging at prices that they wouldn't have dreamed of a year ago. but they have to lock something in for fear it gets much worse. >> and pioneering shares up 3% digesting all of that.
fallback is a trademark, on behalf of the star steph curry. the golden state warrior point ga guard sprained his knee last night. he'll be out as much as two weeks. a step back for athletes sponsored by underarmor. new england patriots tom brady suspension reinstated today. let's bring in patrick for more. just specifically, with regard to steph curry, how much is at stake here, patrick? >> kelly, i think it's going to be real interesting to see what happens with underarmor. they had a tremendous first quarter report, where sales were up 64% over last year. i think those are continuing to grow. but steph curry is a walking commercial. and if he's not able to play deep into these play-offs and the warriors happen to get eliminated sooner than anticipated, you'll not see the
constant competitive commercial, and it could affect their sales in quarter 2 and 3. >> he was mentioned multiple times on their last earnings call. you know, they joked 30% are growth was homage to his numbers. is he enough of a name now that even if he doesn't make it through this finals, at least the way that he did last year, and he was mvp last year, isn't he established enough that there's less a risk? >> he certainly is established. underarmor has made tremendous strides. kelly, they're estimating $5 billion in revenue this year. a long way from the $30 billion in revenues for nike. you'll seeincrease, but it just won't be as rapid. >> what about the tv ratings, patrick, too? >> that's going to be up and down. it's going to be compelling theater one way or the other. if he's out, people are going to watch to see if the warriors can
compete. if he comes back in two weeks to face the spurs, people want to see if he can play at his usual level. so i think the ratings will be just firn. >> patrick, thanks for joining us. we will see. we wish him the very best. some of the highlights right after this. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away.
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welcome back. i sat down earlier with howard marks, co-chairman of oak tree capital for his insights into today's market. >> the ability to issue ipos has been, number one, uncertain, and number two, kind of on-again/off-again. so i think that's really what's behind it. most entrepreneurs, if their company has been successful, if it's reached a high potential valuation, and if they can be confident that the market would be there when they went to list, i think they would do so. >> marks weighed in on theic factor for companies. >> you should look for things that people think are unseemly, or unacceptable, or improper.
that's the way they talked about high yield bonds back in 1978 when i started. >> the ick factor. >> they called them junk. any asset that has a negative nickname might be underpriced. anything that has a positive nickname that is on what i call the pedestal of popularity, you're unlikely to get a bargain. >> catch the full interview tomorrow up on cnbc pro. junk the high yield. you've got a winner, stephanie. >> it's all in the lexicon. all in the jargon. >> that's right. ick sounds good to me. >> it comes up in the valient conversation, too. >> being a contrarian has a way of paying off. you just have to have a catalyst in the medium term. not near term, but medium term. >> we'll keep an eye out for
others in this market. thank you for joining us on the "closing bell" today. that does it for the show. "fast money" begins right now. here we go. "fast money" does start right now. overlooking new york city's sometimes square, i'm melissa lee. tonight on fast, don't look now, but rates around the world are rising. that could be, get this, a good thing for stocks. we'll explain. plus, one group of commodities are going completely wild. and it's not oil or gold. the commodity dennis will tell you about, and whether they're worth a buy. underarmour star steph curry is out for two weeks. moments of truth. huge earnings with a number of big companies with low expectations. apple, exxon, chipotle and twitter. the common theme here, low