sending stocks lower, we count you down to today's is closing bell. bobby jindal becomes the 13th contender for the republican presidential nomination. we will discuss his chances to win the night -- the white house. scarlet: a computer problem is causing a headache especially for the farming industry. ♪ scarlet: good afternoon. alix: a look at the markets for you. it was a really fascinating day. you had carl icahn coming out with a tweet saying there could be some kind of bubble brewing in the bond market. stocks continuing to grind its

way lower. a couple segments staying higher. alix: a killer quarter here new orders were up. you had record high prices, averaging 240 $8,000. the reason why they are significant, the deal with the move up iris. the household formation is happening. scarlet: it is critical, something we had not seen. looking at the two-year treasury moving lower. at 68o-year yield now basis points. alix: we now look at some of the stories making headlines at this hour. minister and the eu commissioner will meet with greece's creditor at 5:00 p.m. new york time. downplayed an

imminent deal with greece. to unlock the a lot money. the german finance ministry said it is a long way to get a deal. the vice president for the euro policy, here is what he had to say. >> we are making progress. basically report to the ministers. and get guidance to move forward. >> we also heard from the finance mr. of finland. >> there has been a lot of back-and-forth and forth between the technical and political levels. we have not seen a concrete oppose a yet. >> a few minutes ago, we got word the group will meet

tomorrow to continue discussions. make a $170 to million payment to the ims. meanwhile, the french president said he spoke with president obama today. phones the two spoke by frenchng wikileaks -- president says -- sentencedton bomber to death. yet a formal hearing for the marathon bomber. he addressed the court for a first time. he gave a five-minute speech with a russian accent peppered with religious references in praise of allah. he concluded, i am sorry for the lives i have taken in the suffering i caused and the damage i have done.

about three hours as the recession and victims of lust -- love one/doubt at him for his cowardly and discussion acts. scarlet: the backlash for the confederate flag reached alabama. it was reported those rebel flags are to be taken down at the state p or the governor said the flag should be removed from that state. warner bros. has announced it'll and the licensing of toys from the 1980 tv show dukes of hazard that have a confederate fight. it is a look at top stories this wednesday afternoon. coming up, google pulls out an finally p or u.s. auto sales are soaring but they are being partially fueled by prime loans. we later discuss growing concerns in the loan market. and a card sharing service out with impressive numbers but also facing a lot more competition as well. the ceo will speak later on to it all that and more is coming

up alix:. alix:a computer -- up. .lix: a computer glitch after more than two lease, the state department finally started issuing visas again and now more than two thirds have been stored. scarlet: the problem has left hundreds of migrant workers stranded and they're paying the price p are joining us now with more, the ceo -- and also with us, allen, who has been covering this story. let's start with you. it lay of the land. nothing more sinister is going on than a computer glitch. out any acten ruled of terrorism. it is still a problem that will take a little while to work through, though the state department issued 45,000 visas yesterday. you are seeing a backlog rising by the tune of 50,000 visas a day for two weeks. it will be a couple more weeks

and this is the second last year and it makes you wonder about the stability overall. alix: what does this mean for farmers, how much money are they losing and why is this a bad time for this to be happening? >> i spoke to one of our members who lost half of his crop, a 700 thousand dollars hit peers several others had a very delicate market because of the harvest in full flow right now. demands will be increasing. on top of the water shortage and labor shortage for those areas that have water, it was devastating. part of that is this is a time where farmers are coming across orders with part-time work dealing with a harvest. is that right? tom: yes. we get them from the federal government under the program.

this is not limited to the agriculture industry? others sit -- other industries are struggling with the fact that. of theculture is one best examples pretty will see cross that do not get harvested. this permeates the economy in a million small ways. there is no shortage in the program of people who have visas to work in the united states. they leave the country for a while to get their visas renewed. in the last couple of weeks, they have not been able to come back there on the tourism allstry, there are touring over the world. cannot come to the u.s. and now you are scrambling for entertainment from the festival. it happens in many small ways for everything to technology to business travel. it has been a mess. it is starting to get worked out and it will take a while to be worked out completely. need tom, what do you

see to feel confident that this will not happen again? need to get more on the border reconnected with the .ystem they say they reconnected about 39 posts out of a proximally 294 posts. some of those are right here in california. he has not reconnected so he cannot get any of those employees to the system. backlog of probably a couple of weeks. plus they had to delay interviews of many of the workers across the border. scarlet: tom, to what extent does the visa glitch problem bring to light some issues, a program farmers used to hire their workers? is a difficult program to work with. it is very complicated here the department of labor has a difficult time answering questions. they are short on employees to do that. it requires an attorney to be

involved. you never know if you'll get the harvest.ved in doing something about the workers we have in this country. of legalhem some sort here. so you can stay also, we ought to have redundant systems and the state department. what are the chances any ?f this will be changed >> some of the responses you carefuln have been very about the need to keep the -- the prospects for a

fix-term, a more systemic does not seem likely in the near future. tom: i think many legislators want to fix the problem and they .o not have the votes the house of representatives have had a difficult time passing anything that has to do with immigration reform. there are probably 40 or 50 republicans who do not want to vote for any sort of immigration reform, even something they might abdicate their you might have to work with the democrats and it has been difficult to find a compromise between the republicans and the democrats to come up with a bipartisan bill your we have a great bill out of the senate. i participated in the negotiation of the immigration bill for agriculture, but we could not get it done in the house.

>> the farmer lobby is important. will we hear anything about compensation? alan: i have not heard anything about that pair 1.2 million agriculture farmers in the nice states. about half of them or more than half are not here legally. the number of these sub's not affected are relatively small. it will be something that will have to be worked out. from a broader perspective, as this underscores what is already an unwieldy system. do we see any impact on prices yet? have produced rice is gone higher because of this? tom: -- >> we have not. there will be suppliers. how much will be made up by domestic suppliers versus ironically imported remains to be seen. thank you so much,

allen and tom. alix: watch your strawberries is what we have learned. coming up, the louisiana governor bobby jindal is throwing his hat in the presidential repair it we will assess what he needs to do to win the republican nomination. now 13. it is ♪

scarlet: a look at the homebuilders. alix: eight year high again. scarlet: the second-largest u.s. homebuilder, profits beat estimates but there are other

interesting measures to look at her new orders of 18%, the value of orders up 28% as we have seen home prices increase in revenue up 32% as the company's's gross margin expanded. up 43%, the most we have seen at five months. highest andat its about two months. other homebuilders have been following suit today. the session has gone on an overall, the clients have steep and. nonetheless, still hanging onto the gains. the eight year high in particular is the homebuilding etf, which has been on a tear. it is now little changed. the gain today means it is the fifth straight session in which we have seen gains for the index. numbers haveousing been improving, existing home sales are strong. more important for these guys, new home sales are strong as well. if you take a look of a new home sales. this is a longer-term chart.

you can see the aftermath of the financial crisis, the boom and bust of the financial crisis where it the number we got yesterday for last month's's new, it was indeed the highest since february of 2008. a real come back here in terms of this number. the other number is the mortgage rate. this is the one your chart of this 30 year fixed mortgage rate weing from bank rate there'd are seeing these rates climb a little bit, reaching 4% chest --ently. 4.18 sent here it 4.18%. we know other things that are part of the equation are rising wages, the approving economy generally. those are not hurting housing numbers. what happens to the sector as it is at an eight or high.

scarlet: there is a psychological aspect to it. alix: julie, thank you so much. let's look at top stories crossing the terminal. president obama changing a long-standing policy regarding americans held hostages -- held hostage. president obama: it is true there have been times when our government, regardless of good .ntentions i promise them we can do better. scarlet: the policy has been criticized by families of those who have been killed in captivity. the president is expected to win fast-track authority to win -- to negotiate the asian trade deal. .he vote passed yesterday only a simple majority is required for passage. house democrats almost killed

the trade measure, until they did not. foxnews will not renew its contract with sarah palin. it says it amicably parted ways with her at the first of the month. palin is still expected to make appearances and is to remain heavily involved in congressional races next year. that is a look at top stories this wednesday afternoon. bobby jindal is likely to announce his candidacy at an event today p or if he does run, it will be the 13th republican to enter the race. scarlet: john joins us now. bobby jindal has an impressive resume and he is attractive from that standpoint. and i will pull that you guys took back in may found out he was pulling your the back of the pack. give us an overview of his strengths and weaknesses as he enters the race. guy ons an impressive some levels. impressive degrees. he is a rhodes scholar. he has worked at every level.

the future government of louisiana, worked at health and human services as assistant secretary. he knows a lot about health care. any republican on the stage. but almost no one knows who he is across the country, including no -- most republicans. he has no national fundraising apparatus. no national security credentials. unpopular in louisiana right now, and his approval rating is down in his own stated he is coming in the third tier in a crowded republican field. it will be hard of cap -- hard for him to get out of that third tier and into the second tier, let alone the first. debates,ting into the can he elevate himself enough to pull that off? >> the big problem is he has tried to get himself some moretion by being a much hard edge, harsh toned conservative than he had been in

previously his career. a that he really is as private citizen paired every time he has tried to do that, as you might remember when he was in europe and made a comment about there being no go zones in europe where muslims rule by teaching sharia law, he got shot down on that from every possible angle. as he tried to attack hard right, he tended to seem not as authentic and get more criticism for his credibility. where he could get on the debate stage and make himself that are known in the party. scarlet: thank you so much. tune in tonight at 5:00 a.m. eastern time to watch "with all due respect." he nicknamed himself bobby after bobby brady on the brady bunch. alix: i love the brady bunch. if you ever sense that gmail you wish you could take back the minute you sent it, google has a solution we'll give you some details coming up next. text messages to it i

want to retract text messages. ♪

scarlet: we have all been there before. you hit send and your heart sinks when you realize you hit -- you sent a hilarious joke to your boss instead of your best friend. your worst nightmares may be gone. a look at some famous e-mails that should have been done. >> it has happened to so many of us, sending an e-mail to the rompers and or sending wrong information to a ton of people. the inter-webs can now rejoice

as google formally introduces its undo send option. it can save a lot of people their jobs or their money. over theder to's -- past several years, tens of thousands of college hopefuls have gone e-mails of acceptance followed only by e-mails of apology. two thousandts in nine got congratulatory lines from uc san diego only to be told it was a goof from a so-called administrative error. in the pharmaceutical industry, taking two of these will not make those e-mail headaches go away. the999, one called antiseizure drugs the snake oil of the 20 century. settled thatts showed patients had a risk three times higher than reported of heart disease. imo said the data should not see the light of day to anyone outside.

and of course, there are e-mail errors in the finance field here and one contractor for goldman sachs sent an e-mail to a gmail.com account as opposed to a gs.com account. they did block access to the informationrevent -- this year, personal and -- g-20 details to leaders including president obama were excellently e-mailed to organizers of the asian cup football tournament in 2014. now if any of the self-inflicted e-mail embarrassments happen, you can undo them with the click of a button like they never happened. scarlet: you can also retract bloomberg messages. you hit for go. he did not have to send that mean message. re-buttonly need a for text messages because that is where you get into trouble. it goes instantaneously. alix: especially autocorrect.

in certain circles come when a group goes to the bar, one person is not allowed to drink and actually becomes the designated texter for that exact problem. that movie the internship with own wilson and vince juan, one of their ideas, they came up with an algorithm and you are not allowed to text someone unless you could pass the quiz indicating you know what is going on. alix: i love that. that is so awesome. i am sad we say goodbye to and i see later. coming up, the auto loan market is growing almost as fast as sales. troubling trend next on the market day. ♪

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call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. alix: welcome back. we want to get straight to a look at cap headlines as afternoon.

carl icahn sold the last of his netflix stake today. the same opportunity netflix offered years ago. the cloud computing storage is teaming up with big blue to go after large corporate customers. clients will now be able to store content in ibm's cloud. >> the future of the enterprise will be this mix of technologies. bring a content management and collaboration in ibm is being .redible and powerful analytics as well as workflow. when you bring those two technologies together, -- >> advanced analytics, we can bring together using ibm's clout and data strategy, more secure

using our intelligence capabilities, engaging applications that really went from the edge where people cap content, all the way to a people are using more mature business opportunities. alix: they also established partnerships with apple and twitter. think twice about some of those e-mails you send. feature gives people 30 seconds to not send it. coming up, on the bloomberg market day, auto sales surging to near record levels. while that is great for hasmakers, clad sharing seen rapid growth but is also facing stiff competition. in a few minutes, we will hear of the takeover

deal about u.s. foods preventing the two largest distributors from moving. all of that and more is coming up on the bloomberg market day. regulators are looking into the nearly 13 for the dollar treasury market. betty liu about the opening secret in this latest. >> it is about what is going on on the primary traders. basically they are the engine behind the sales of u.s. treasuries, two big institutional investors. --t we're finding out is

we're finding there are ways treasury traders can see types of order flow head of the auction. also talking in chat rooms. , we're not saying anyone has broken any laws so far, but what the department of justice can do this is say, if this fits into the right , -- five banks pleaded guilty in the last exchange. >> when does it become something and a part ofr

business? >> i think it went from gray area to cartel-like behavior. it showed the department of justice will make cases out of these things if certain types of order flow information or sales information is traded. of course, they are probably going to be looking at this carefully now or you are right that it falls into a gray area. the broader picture is the treasuries like fx or the foreign exchange market is a largely unregulated market or you have conduct the doj is cracking down on and they have been successful so far with this. mark: are you telling us there are no regulations in place to prevent this? >> we basically described the .egulation you have got a little bit with the fed, the treasury department, we do not have one large overarching theme at you do with the equities market.

scarlet: it is very preliminary and there is no accusation of wrongdoing. do you know if there is a possibility of distorting the treasury markets at all? a core issue. it is open to abuse. it is always very open ended. to manipulate markets, change prices, that is really what the focus is. making cons of money by colluding or talking about which treasuries, fx or libor. if there is a ability to do that, the doj will crack down very hard on that.

mark: what they want to do is close in entry point to abuse. keri: exactly. alix: i want to take a turn to cars. the automakers are having their in amonth in at least couple of years. a level not seen since 2001. are beingose numbers fueled by subprime loans, which is causing some concern. lisa abramowicz joins us now to explain why. hey, lisa. cars, love them. what kinds of loans are being told out and what is the risk factor here? >> there is a subprime loan sent to with credit scores below a certain amount. borrowers are getting loans to buy cars and the loans are being made for longer and longer

periods of time. now, 74% of loans made this year have maturities that extend out beyond five years that have been bundled into these. alix: why is that significant when we are seeing the average extension of cars, 11 years does not seem so bad question mark quite -- had? -- bad? >> you areterest-- paying a lot more money. of the car depreciates dramatically after a certain point or you could have a certain situation where a lot of borrowers are underwater, where essentially their vehicles are worse let death worth less -- vehicles are worth less. a closewant to take look at a debt offering by american credit acceptance. about one third of the loans in

the dear lawyer are tied to borrowers with credit ratings under 500 like you mentioned. huge interest rate. the loans exceed five years. are people buying? saw: -- lisa: typically, the line is that people pay back the auto loan before people pay back the mortgage. to get to work on time. will they keep paying back the auto loan, as one person noted? are they going to pay that back if their car is not worth anything and will not work? alix: the big elephant in the room is the search for yield and bond investors. does this change as the fed raises rates? typically loans are floating-rate debt. it could be ok and insulated. the problem is people would be less inclined to go into securities. a lot of people go into

securitizations, the kind of debt auto loans are packaged into here they want to buy aaa rated paper backed by these subprime auto loans. backinge so many loans the amount you get. there are so many excess payments that you get your money back and then some. the way that securitizations are arranged as you have got a pool of auto loans and people buy bonds act by that pool and the , basically, they have to be somebody losses before the top rated bonds get any losses. there were so many losses because a lot of these loans not underwritten in a way to the strength someone would be interested in. typically last year, they did investor he -- investigate some underwriters and base we would say, we are concerned about how much the underwriters are

deteriorating. good stuff. thank you so much, lisa. coming up, it could be one of the next big silicon valley tech but while the users are growing interop dropbox, so are its competitors. ♪

alix: welcome back. we are 15 minutes before the closing bell. we had over to julie hyman. has really gained steam as the day has gone on.

where we stand as we approach the closing bell. all three of them as alex is alluding to having triple digits decline. also, it is the worst performer today, down .8%. look at the various sectors and you can see where the most pain is being felt cared it is a broad-based selloff. we are seeing some buying in technology and that is it. attention tow your two financials in particular. goldman sachs and citigroup both back today. out those stocks have rallied, that they have done well over the past year or so p he also says in the second half, they will have the -- weaker revenues and lower volumes. valuation,ake that if you will, versus the index of banking stocks. take a look at the bloomberg

terminal. i adjusted this for percentage. down here in the yellow line, we have had that index. it is up about 11%. the orange line however, -- goldman yesterday closed at a record. .o falling today santa --stocks, my andanto is cutting costs developing plans to reduce operating expenses by $.5 billion. that implies monsanto things coin and soybean prices will continue to drop weird it is significant because they have dropped quite a bit already. take coin -- take corn. we sought reach a high in mid to late 2012. over the past three years or so,

the highest coming late into 2012. a declines ever since. because it has risen, we saw farmers trying to increase its yields. that results in prices the default. folks ares though drawing the conclusion that will continue. you get less money to spend. good stuff. good stuff, julie hyman. now for a look at top stories making headlines, the worst place in the country to leave your car, san francisco. the area had the highest rate of auto theft in the nation last year. 10 cities areop in california. before still be a while self drying cars -- another 15 years. toyota's biggest supplier. -- technology to make

probably will not be established until at least 2030. the self driving cars will be in by 2020. by the way -- by the way, there may be a time when you do not need cars. remember this from back to the future? ♪ in moving funff is about to become a reality. toyota's's luxury brand says it has build a working model of the hover board. it is very cool. sale, not yetor at least. the board uses liquid nitrogen, superconductors, and magnets. prototype testing will begin this summer. those are the top stories at this hour. dropbox is posting very impressive growth but competitors are increasingly catching up. for the upcoming episode of

studio 1.0. chang: who are they, where are they? >> the vast majority of our users are outside the u.s. and it has been away from the beginning. people use dropbox not just for storing, but for sharing. that is how we grow. emily: how many of those are paying customers? >> most people are using it for free. you can just time or if you need more space. 8 million businesses up from 4 million may be a year-and-a-half ago or two years ago. we have 100,000 business customers. emily: who are the biggest fortune 500 customers? majority -- there are a lot of household name , every quarter, we're adding customers. what is the biggest

challenge in terms of penetrating the enterprise? >> every technology goes through a curve where people are unsure about it. it is actually safer to have our information and services in dropbox and in the cloud in general. the same way that we do not put cash under our mattresses anymore. emily joins me now from san francisco with more. but retold about how much the company could actually grow? emily: he said the great thing about dropbox is that 400 million people use it there those 400 million people are sharing documents with more millions of people and that is how drop ox gross. he feels very much that the growth engine is sort of tied up in the company itself and the business model has not changed

much from the very beginning. they have paying users and that is how the business has evolved over the last nine years. he also spoke to you about his relationship with mark zuckerberg. what is that like? ago, that was a moment when i said, that kid is knowing places. he's 32 years old now, but by some standards, still a kid. he is getting advice from the best. i asked him about mark zuckerberg and what kind of advice mark zuckerberg has given him. listen. >> he has given me a lot of advice on company scaling, how you organize people, you know, how do you set up -- you have to be a lot more thoughtful about how you compensate people and how you think about things like their titles or how people advance. how do you decide where people place bets. you have this whole poor for

real. how do you keep it running when the challenges are so different at either end of the spectrum? it is a lot of things like that. we also got a great anecdote about how he met steve jobs. steve jobs action tried to buy dropbox and drew said no. colorlot of interesting from that meeting between the two of them. dropbox today is still a standalone company but as you said, there are other companies like box and microsoft that are catching up here at we will dig into that a little bit more. alix: good stuff. looking forward to it. thank you, emily. more coming up at 4:30 p.m. eastern. and studio 1.0 tomorrow. up ahead, lie a u.s. food deal has been blocked by a federal judge and take a look at other mergers that could also be in jeopardy.

♪

the latest example of a privately held tech company to get an eye-popping evaluation seen, it wasave especially astonishing. it is raising a new round of capital at a valuation of $10 billion according to people with knowledge of the matter. $10 billion, double the valuation just in december. twice what it was worth in december. the financing could be announced as soon as this week again according to people familiar with the company's plans.

it has 23,000 customers in 32 locations. it essentially sublets office space to budding entrepreneurs and bills itself as having new age kind of office space, more fun to work in, competes with in the same industry. $10 billion valuation. alix: we need a new term. thank you so much. at $3.5 billion takeover was planned of u.s. foods but it has been blocked by a federal judge over concerns of rice increases. that is not the only deal that might not get done. joining us now with more, bloomberg news reporters at and david joining us from washington. ed, a very tired and the day guy. what else did not get done here? one notimmediate getting done is this office

depot deal, announced last year. , t does major players, both with some directed to market and some big office supplies. merging in an already very consolidated market. the spread on that one has widened and they're looking saying, if they will be this will do theco, they same on staples and home depot. alix: would these deals have gotten done say 10 years ago, or are we seeing a totally different kind of regulatory environment question mark -- environment? they are more aggressive than they have been in the past. the sec sued synergy about a month ago. you saw the justice department. they did not go to court, but put up objections to comcast,

time warner, and comcast and time warner abandoned that deal here to 213, the justice department sued american airlines and u.s. airways. theiries are warning clients that it is a much more aggressive environment. >> it resulted in higher breakup fees because people are more mindful of the risks they are taking to the other thing that is crazy here, to the point about the sec have a sharp teeth, we saw sprint and mobile come out and say, if you try this, we will come out. alix: we have got to leave it there. thank you ed and david. stay with us. ♪

alix: we are moments away from the closing bell. i am alix steel.

i'm ugly day for stocks. i doubt closing around the lows of the session, suffering the worst drop in three weeks, down 174 points. materials, health care, the aggers today. those positive housing signals were there as well. joe with me to discuss is wiesenthal. we get some good housing signals, but what is the catalyst to take in one direction or another? >> you call this a selloff?