painter. you couldn't do that to the plummer who comes to your house and yet somebody can go on the internet and say that they are sharing files when in effect it's no different than going to your house and stealing your car. >> and certainly not the only one who has been out there voice criticism, like pink floyd. paul, we have to go. other pleasure. >> thank you. >> thanks for watching "street signs," everybody. "closing bell" is next. hi, and welcome to the "closing bell." i'm kelly evans here at the new york stock exchange. >> and i'm scott wapner in for bill griffith today. the stock market hearts the fed. a roaring comeback from the recent selloff after the fed minutes were released about an hour ago. don't fight the fed, i don't know. >> we had to declare what we were fighting, right? this was the fed meeting where afterwards janet yellen came out and when pressed on the language between the time they would end new purchases of bonds and start to perhaps raise interest rates

said a considerable period of time might be something like six months and what people wanted to know is a reflective discussion that the fed had, and it looks like not necessarily. >> janet yellen gave a week or so ago what some people describe as the most dovish speech by a fed chair possibly ever. >> right. >> so it took maybe a little bit longer for the message to get through to the markets. we'll see how long this lasts, but it's a pretty decent reaction to the stock market. >> and to your point she had already walked back in laying the framework for why the unemployment situation in this country is still weak, saying it's still cyclical, saying the fed needs to do more until it's healed more. made the case. the minutes would seem to suggest more members wanted to make sure they didn't process jumping to any tightening before they were ready for it, before the economy was ready for it. >> is this something to build on, the last couple of days or just a dead cat balance a momentarily blast of enjoyment and then we go back to the

selling that we see? >> a lot of people are trading and says the feels like the move isn't yet done but they also said about the last couple mini corrections, shallow corrections that we've had. unique and invaluable insight on where stocks could be heading from here. exclusive interviews with giant of the industry coming up, including big miller of leg mason and brian rogers from t. rowe price and john levin of levin capital strategies, pretty provocative stuff. >> how about this provocative story this. doctor collected nearly $21 million in medicare payments in 2012. that's right. one single doctor, and it was probably all legal. really? how in the world is that possible, and what does it mean for a medicare system already on the road to insolvency? we do have a special report ahead. >> yes, we do, and here's where we stand in markets heading not final hour of trade today, and the dow is making a pretty strong comeback, up about 137 points, a little shy of 1%.

meanwhile, the s&p 500 adding almost 15. 1866 is the level there and nasdaq, of course, so much focus on this index of late. after a three-day selloff in 2011, a little bit of a bounceback and the move continues yesterday. 52 points to 4165. >> joining our "closing bell" exchange is abigail doolittle and heath fitzgerald from money map press and jack baton rougen and peter anderson from asset management and our own rick selly is hesell selly is -- rick selly is here as well. >> keith, do you feel better about picking stocks now after the fed minutes were released? >> they will make a dovish case, happy to see that because it means the upside is the path of least resistance, so, yes, i like this. >> i want to get everybody's take here to the reaction something bill miller from legg mason told me yesterday. >> i think after this correction you can throw a dart in the

market and anything you hit will go up in the next six months. >> really? i don't even know how to react to that. certainly you don't mean anything you can hit? >> pretty much anything, yeah. the conditions for a bad market just don't exist. >> okay. just so everybody heard, that he said the conditions for a bad market don't exist. you can throw a dart at the stock market, and anything will go up in the next six months. jack, what do you make of that? >> you know what? i could have thought for a second that it was me talking. it's the david tupper trade is really what it is. look, there's one rule that you learn when you get in the market. do not fight the fed. last week, as you told us, we heard the most dovish speech i think i've ever heard and today the fed actually came out and said that they are making a mistake in the way they actually handled the fact that they will start raising rates a lot, i guess, they said they would raise them sooner rather than later and they were wrong, so all of that tells me that easy money is here for a lock, long time, and if that is the case,

then companies will continue to make money, this earnings season is going to be right there, and i agree 100%. i think just about anything that you throw a dart at over the course of the next six months will be a winner. >> rick, rates moved pretty swiftly on the minutes? >> well, they did and they didn't, okay? i mean, if we want a real read on what's going on, consider the following charts as i'm talking. can you look at the intraday 5s, the 10s and 30s, definitely steepening but anyone watching the santelli exchange should realize that's the only permutation that was likely. if you open the charts up to the last fed meeting, the one the minutes were from on the 18th, right around that period, what you'll notice is 5s to 10s have flattened from before the meeting to before the statement today about 16 basis points. now they have split the difference. half that is gone, so 105ish where that spread is, eight basis points of flattening still remains and the 5s and 30s,

similar, with bigger numbers, 26 basis points and steepening and 13 basis points have come out. 13 basis points remain. that's at 192. what does that mean in english? it means that the effects of trying to pull back their words haven't been 1-1, and in terms of interest rates going down, just because a car is going 90 miles an hour and it was designed to go to 70, doesn't mean that the car is overperforming. might be out-of-gas, the engine might be off and the car is in neutral. just going down mt. evrest. i think rates are going down, not for anything that the fed has orchestrated but because the world is so topsy turvy that other xoout competing areas of the fixed income curve, like europe, are so low in terms of price that it makes ours look expensive. there's no other place to go. why would an investor prefer the same yield on a spanish 5 as a u.s. 5? it doesn't make sense, and that's the problem with the micromanaging of central banks

worldwide. >> so peter anderson, what is an investor to do here? >> well, if i could respond to mr. miller. you know, i think the market is more like a chessboard than it is say a dart board or checkers, so i -- i don't really agree with him. i think you have to be very careful at which stocks you pick and not necessarily say correlations are all at one. the sentiment is positive, so, hey, let's just throw in an index fund there and wish for the best. i think instead you've got to look at individual stocks and pick very carefully. now, the good thing that has changed today is -- and i have been on record for this saying this before about the fed, that they actually listen to the market. a lot of people don't agree with me on that, but i think today i have been vindicated because in the minutes of the meeting it actually says in that so-called secret conference, the video conference that they had, that they were very concerned about

tweaking that employment or unemployment rate and how the markets would react. >> okay. >> so to me that is a frank statement saying that they actually -- >> what's the takeaway for you today? >> the takeaway is that this is good news for us because the fed is actually saying they are on the market side. before this there were question marks about that. >> that's right. >> now they are saying we'll make any decision based on incorporating how the markets will react. >> isn't it kind of sad though -- >> go ahead, abigail. >> go ahead. >> isn't it kind of sad though that we're talking about the fed being on the side of the markets. shouldn't be the fed be on the side of the economy or on their duel mandate in the fact that at this point we have $4.1 trillion of leverage, let's call it what it is, we like to call it fancy bond-buying program but it's leverage into the system that has gone only to the financial markets, to wall street, not to main street, it's not helping the average american outside of sort of the superficial lift and all of these other bubbles,

leverage, they typically pop, so, you know, it's hard to know when that will happen just because it's becoming so overdone at this point, but it's hard to see that the fed can continue to play this game and push the markets higher, and, again, why aren't we talking about main street? if you look at the velocity of money, or if you look at cap "x," this recovery is not the end goal >> hallelujah. >> what did you just say hallelujah? >> whoever just spoke, you get the price. >> that's abigail doolittle. >> great job, abigail. >> thank you so much. >> wait a second, wait a second, rick. wait, we've had this conversation before. there is no way that you can convince me that these low rates are the reason that we've got companies sitting on trillions of dollars that they are not redeploying into cap "x." >> i'm not going to try to convince you. money is sitting there. the money is sitting there.

mistrust. mistrust. >> these companies are only going to start spending money when they see a future, when they see pro-growth policies, and it doesn't matter how long the fed keeps raise low. that is the problem. >> that's why you should be looking at the cap "x" schedules of all these companies because that will tell you -- >> the models were wrong. >> the big story -- the big story in hindsight is how well this market has done in spite of what is going on in d.c., not only with the fed. >> that's the ticker. >> and with the legislators. that's what this is all about. >> keith, go ahead. >> i was going to say there's supervision in washington. the fed is not list ming to the market, fed is reacting to markets driving it. i think that's the wrong policy if the fed will take an action. never mind the fact that they should be out of this to begin with, micromanaging and moving interest rates, it demonstrates that they are making it up and flying by the seat of their pants. guys who control the real money and the capital expenditures and the markets are the ones driving this, that's why investment is

low and we've seen that around the world the last 125 years. >> let me address that. >> what he's saying is exactly right. there's a window here. >> peter, hang on one second. >> rick, go ahead. >> they should be jumping through it, because all -- the all the programs were designed to keep rates low. they have an incentive thanks to europe. it would be a great time to normalize. if they let this pass it will be messier six to 12 months from now. >> i absolutely agree. >> that's the last word. guys, thanks so much. >> that was good. y'all played by the rules. >> all right. we do have 50 minute to go before the bell rings. dow is back around the highs of the day, up 151 points. >> and stocks may be rebounding today, and coming up we'll hear from someone who says markets and tech stocks specifically are in bubble territory and that bubble, and that is a key point, is in danger of popping. >> the proposed merger between time warner cable and comcast coming under scrutiny on capitol

hill today. we will have a live report, and we will get reaction from the man who orchestrated one of the largest ever media deals, former time warner chairman and ceo jerry levin. >> yes. he's coming up. feast your eyes on this beauty. meanwhile, it's causing a bit of a commotion outside the stock exchange today. there it is. we're going to look at bentley's flagship four-door new luxury model and the state of the luxury auto market when we speak exclusively to the company's ceo. that's all coming up. keep it right here. you're watching cnbc, first in business worldwide. ♪ [ banker ] sydney needed some financial guidance so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today...and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker.

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. welcome back. the proposed merger between time warner cable and comcast, the parent of this network, is coming upped scrutiny on capitol hill today. >> hampton pearson has those details. hampton? >> reporter: how long you doing, scott. we have the senate judiciary committee holding the first public meeting on the proposed $45 billion merger. top executives from the number one and number two companies did their best to reassure skeptical lawmakers their merger would not harm consumers with 30 million subscribers post-merger, covering about 30% of the pay television market and between 20% to 40% of the high speed internet market, with you a top

comcast executive argued not at the expense of consumer choice. >> traditional boundaries between media, communications and technology companies are becoming obsolete. while this transaction will make us bigger, that's a good thing, not a problem. most of our real competitors are national and global and larger than us, like the bells, satellite companies, apple, google, sony and netflix. >> but consumer advocate groups told lawmakers a bigger comcast would have free rein to raise cable rates as well as too much leverage over what americans watch on television and online. >> the transaction could fundamentally undermine the new wonderful innovative options consumers are seeing. comcast wits control of video and high speed broadband adding time warner's systems could

locked in high prices for nbcu programming and sports and regional sports and cable programming. >> now lawmakers, of course, don't decide whether the deal wins approval. that's the job of top regulators and lawyers at the fcc and justice department, but at today's hearing we did get an opportunity for comcast and time warner to defend their deal and opponent to put all their issues on the table. kell? >> hampton, thank you very much. as the case -- as the case giant media merger waits approval, one executive is speaking out in strong support of the deal. >> with more let's bring in jerry levin, the former chairman and ceo of time warner. it's great to see you again. >> thank you, scott. >> why are you supporting this deal that some say is, you know, too big, not good for consumers? >> i think it's a good opportunity for us to take a look at digital disruption and how it's changing the world. it's changing our difficult in addition of antitrust, what's in the public interest, and it's also changing what market companies are in. i mean, if you look today, you

can see that apple tv has a great interface. amazon tv just passed hulu. google is building a high-speed fiber in eight of the markets, so i think this is a great time for us to step back and see what the implications are for antitrust enforcement and for how we define a company. what's a core business of a company? >> so the idea of scale maybe needs to be re-evaluated. at first blush some people say too big is no good. you're saying it's a different world. let's reassess at how size matters. >> it's a totally different world. and everyone takes the conventional position there's a lot of believeating, and in fact when you take a look at it, what's the public policy and the objective? and the objective is to stimulate global innovation, and to do that what's the magic? what's the chemistry?

there's no correlation between any particular size, and right now we're in an explosion of programming. there is so much available coming through every meeting. it used to be that we regulated production, distribution exhibition, pipelines, the key words today are platforms. platforms are being created with open applications. what does that mean? i mean, what is google? i was at a -- at a health care summit with startup health yesterday and google. what business is google in? google is in the moonshot business of taking this technology and taking it everywhere for the consumer, and that's what comcast is going to do. let 1,000 flowers bloom. let these companies have an opportunity to create new businesses. >> the reality is that the innovation is happening. it's happening pushed by some of

the new players and you can see a world in which a lot of this content is developed via broadband and in the years ahead, but that still doesn't change the fact right now, if you live in one of these cities that's affect and you are flipping on the tv, you really only have one choice, and, again, that grow graphicical advantage, i understand they are saying it will switch from having the choice of, you know, this company to that company to some extent, and i guess what i'm saying is this. >> go ahead. >> change happens slowly and very quickly and shouldn't you make sure that the market today is competitive even though all of that competition and all of that change is coming down the pike. >> first of all, change is happening so rapidly. i talked to allison and put my makeup on to try to make me look a little better. she's a time warner cable subscriber in new jersey. her 4-year-old watches tv, why, because the interface is much better? look at the march madness. the amount of people who watched some -- this is what i would

call munching rather than bringing works watched the final four on some device, not on their television set, was extraordinary. i mean, you know, so the change is -- this floor doesn't look anything like it used to look like and that's all i'm saying. let's take a look at what this disruption means because it isn't about the cable companies that, by the way, are responsible for most of the networks that we now watch and the proliferation of programming >> you think this means that allison will have to pay more for her cable than if it doesn't go through? >> no, knowing the cable business the way i do, the economics, cable rates will go up whether there's a time warner or comcast deal at all because the programming costs are going up. we're not talking about putting the time warner cable systems in the comcast cable systems. it's going to give comcast, the heir apparent, position in new york and l.a., and we're living through the golden age of

television. all the creativity is coming through. netflix is ordering neat programs, so it's not just the cable companies anymore, and the one thing that regulation doesn't take into account, mobile technology, the ability to watch video on my mobile screens is the fastest growing part of the market. that's not comcast and time warner cable, so the last thing i would say having always looked for innovation, go back to the old time. we used to put people in a box and say create new magazines. you never know where it's going to come and where it's coming from, so let's give this company a shot. let's give google a shot. let's let them have a goo g at it. we need to maintain our international lead in global technology and somewhere, somehow, there's going to be a new advance that we haven't thought of. >> jerry, thank you. >> you're welcome. >> good to see you. >> thank you, scott.

>> all right, jerry. >> 40 minutes to go before the close. watching markets here with the dow up 160 points, 17 on the s&p and 63 on the nasdaq as this rally continues, spurred again, scott, in large part by what the minutes out about 90 minutes ago had to say. >> are banks and retailers doing enough to protect you against more data breaches? we're looking at the latest information breach next and it's a bad one? >> now on earth did one medicare doctor collect $it 1 million in payment from the government? is there just better oversight? the president of the american medical association weighing in coming up on the "closing bell." "

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consumer spending confidence has been shattered by data breeches in the retail industry. >> companies involved in every level of the payment process are gathering in las vegas to fix this huge problem or to at least try. that's where we find our very own courtney reagan. great to see you. what are they cooking up over there? >> reporter: yeah, good afternoon to you, kelly. the electronic transaction associations transact conference brings every part of the payment at work together, from the credit cards, to the banks and payment processors and regulators and retailers, and

they are all talking about securing spending safety, but also pointing fingers at each other for what bears the cost and the liability. now, retailers have had payment and data security teams in place for many years and have been in the process, albeit slowly, to convert their systems to chip and pin technologies or emv systems. visa and mastercard have given retailers until next year to completely convert the systems or the liability for fraudulent purchases shifts to the retailers. now, emv systems is not cheap. it's also not completely a panacea. >> to move to chip cards probably costs the banks about $5 billion. for retailers it's $25 billion to $30 billion so collectively you're talking $30 billion to $35 billion for a chip or chip and pin begin sflags when we look at the target breech or other retailer breeches, those are breeches of da'tara systems

that store data. >> reporter: as of two weeks ago walmart turned on software at 1,000 u.s. locations, enabling its point of sale systems to accept chip and pin card. the whole network of stores will be ready to accept the cards before the end of the year and because the hardware is combatible already with emv, the cost of turning it on wasn't material. target, however, says that accelerating its chip and pin technology program is part of a $100 million overhaul to ready all 1,800 of its stores by the beginning of the first quarter in 2010. kelly and scott, back to you. >> all right, courtney, have fun out there. thank you. for more information on how to spend electronically after two-thirds of all internet servers were found, allowing them to get pass word and user information. >> it was dubbed heart bleed and it may have left data vulnerable for the last two years. we're joined by stephen boyer,

co-founder and chief technology officer and add am levin is chairman and co-founder of credit.com. adam, i'm just wondering what you make of this heart bleed thing and how serious it is, how concerned should we all be? >> well, i think it's very serious. you're talking about two-thirds of the websites in the world that are having a potential issue with this, and the problem is people thought that they were engaging in secure transactions, secure communications, and they may well not have been, but what's worse is we don't know. they don't know if anyone was really watching or not watching, so we have to wait until we know the fix has been done, the patch has been installed, and then we have to very vigorously and deliberately be changing passwords, looking at credit reports and monitoring our transactions, looking at our bank and credit card accounts and make-hour the transactions look like. >> this is a nightmare frankly.

there's no way people actually will do all of that. >> well, so one of the big challenges is time to respond. there are literally millions of servers out there on the internet that are running this software, so the big challenge is for organizations to be able to understand what those issues are and respond. it's not just updating the software, that's one piece and it's also changing the keys and the materials used to secure those communications. organizations are because of the unknowns they will have to change their keys and infrastructure which will take time. >> to some extent organizations will have to get some kind of losses associated with this because it's frankly becoming just the increased could the of doing business. >> absolutely. one of the problems here is this law or knuckleballity bomb known overnight. we just learned about it and had to respond very quickly.

if you're -- organizations are looking for ways to transfer the risk, of course in cyber insurance. how likely do you think another target situation is? >> identify breaches is a third factor in life. they need to upgrade in security and train personnel and assume the fact that they are probably going to have an issue, and they need to be able to respond with urgency, transparency and empathy. that's the key thing in dealing with consumers. consumers have to feel like you're telling them what's going on, and you're giving them a solution to what you know is going to impact them. >> is that, adam, the most important part of the whole equation? does it come down to money or have they not been spending the

money that it takes to make everything sector? >> i don't think there's ample investment in all the sectors. could you have done it right, but if there's a fail our in your training or someone mix mistakes, and people historically have been the weakest length and so many had and it told them there was a problem and someone overrode the system continually. >> thanks so much. interesting conversation on something that affects everybody. >> are you going to change your passwords. >> i saw that they are recommending that. >> such a pain to go through and change every pass word. >> your whole life is password. >> dow is holding on to those gains, up plus 152. s&p with a pretty nice gain of

17 as well. >> up next, the ceo ran sands will tell us exclusively how he plans to continue gaining on market share on the internet. >> why is one activist investors now trying to change how the it hands out political donations. that's next on the "closing bell." g bell."

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welcome back. a look at the major indexes where we're seeing strong gains of 1% across the board. just as everyone is talking about how there's no correlation, correlation today. the dow adding 164 points, 18 on the s&p 500 and 66 on that hard-hit nasdaq from the last several trading sessions. >> best day for the dow and the s&p, by the way in, like three weeks. >> is it? >> it's been some time.

we had this big pullback, and health care stocks are actually leading today, along with materials, so the health care ones have been in focus, biotech names and momentum stocks getting really slammed are a bit like today. >> foals like 2012 then again. health care was the leader there. >> and in terms of the performance of the dow members merck, best performers today, american express, visa, boeing, microsoft, old tech names, have been doing incredibly well, even in the face of the selling and the tech-driven nasdaq. the old techniques have been holding up well. >> the growth to value ratio, the question is does this get unwound as the rally holes. foo >> seema mody, what's leading the days today?

>> leading the way higher is social media firm facebook after receiving positive comments from susquehanna and sun trust, both bullish on the company which had last nearly 20% of its value over the past month. biotechs rebounding from its recent selloff, all moving higher, and then the internet stocks also joining in on the rally today, linkedin, priceline, yahoo! and pandora and eway all up on the day. hershey, its stock melting after goldman sachs downgraded the stock from sell to neutral saying its recent run-up is about to end. scott and kell, back to you. >> want to mention how consell its is doing today, earnings season getting into full screen and we're join by consolation brands ceo rob sands in a nbc exclusive. >> rob, welcome. goods to have you on. >> thanks. >> people are drinking a lot of beer.

i guess that's the head lynn. >> that's true. >> is that what this is really about? you guys able to get u.s. ownership of corona, modella's corona brand, is described as a godsend as i've read on some of the notes today? >> well, it is a very positive thing. it's been a franz formational deal for constellation, and, on top of it all or perhaps the icing on the cake is that the beer business is growing at really an exceptional rate, double-digit growth at the current time so we're very fortunate. >> you guys have an increasing farn base and there's focus of what is happening with grapes. what can you tell us about pressure points for 2014. >> we're in a really good position when it comes to costs. in the wine business we're not expecting much cost inflation from 14 to 15 due primarily to

the fact that the calendar year '13 and the calendar year '14 harvest were big, and, therefore, those are the grapes that are going into the bottle at the current time, and so we're in a good position relative to costs. on the beer side we're not experiencing huge costs in inflation either so costs are not a headwind for us. >> rob, i'm wondering. in a world that seems to be going increasingly towards bourbon and brown spirits and there's a big push in asia for that, does that need to become a bigger part of your portfolio? >> well, that's just one trend, and we take advantage of that with our brand black velvet which is canadian whiskey where we've also introduced new flavors such as cinnamon rush and some other flavors, so we do participate in that category but the other categories that are

hot are, of course, imported mexican beers, kraft beers and wine and premium wine in particular remains very hot category, so we're participating actually in all of the high-growth categories in the wine, beer and spirits business. >> you feel any pressure however, to do any sort of transaction as a result of what your competitors is there done when it comes to brown spirits and bourbon? >> we don't feel compelled to do any transactions, but, you know, we're always looking at what the opportunities are for new products, and certainly brown spirits is an area where we've been expanding, primarily, as i said, with the introduction of new skus, the introduction of sinmun rush in our bourbon line. >> also curious about demand for this year as you start to lapse in some of the best per forrance we've seen in the last 24 months. how strong does the holiday need

to be? as we move through the year and there's a lot of focus on the consum consumer, whether the income will pick up, whether the u.s. economy will pick up? >> in the holidays it's important but in the beer business the summer is the number one selling season so we're really moving into that selling season at the current tie, and our sales growth last quarter was double digits in beer, so going into this summer, even though we're overlapping very strong group from last summer, we're expecting very positive growth in the beer business. the wine and spirit market remains robust as well and we had mid-digit sales to growth rates and we expect to continue that growth through the summer and what we call ond, october,

november, december, a great part of the year and lots of programs to drive business during that time. >> rob, thank you. >> thank you. >> the ceo of constellation brands with us this afternoon. about 15 minutes to go into the close now. we're still sitting here, scott, at session hoys for the day, dow up almost 17 points, 18 on the s&p and 16 on the nasdaq. >> best day in about three weeks for the dow and s&p so pretty good going here. will la quinta be hospitalable to investors? up next we'll find out how the hotel chain is faring on its first day of trading after a bumpy road while going public. >> and take a look at this. this car is parked outside the new york stock exchange right now, and it costs more than most homes in america. coming up, we will take the pulse of the luxury auto market in an exclusive sit-down or rather stand up with bentley's ceo. keep it right here. ep it right 0 fuel reward card is really what makes it like two deals in one. salesperson #2: actually, getting a great car with 42 highway miles per gallon makes it like two deals in one.

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welcome back. we're pretty much at session highs for the index here at the dow up 172 points and a look now at what's driving this market. dom? >> kelly, scott, you've got to wonder sometimes, when we've in essence doubled the market gains

since before the fed minutes came up, at that point up 80, 85 point, up 175 points right now. a nice day for the bulls. s&p up 7 points and now up 19. so it's been a very, very good day. if you look at where the laggards has been, it's been the utility and telecom service stocks. heavy dividend payers so there's a sense people are getting back into some of the other stocks beaten down. talking to traders, has been about stocks beaten up. talk about internet names and you say facebook and all of those kinds of talks, they have been real gainers and maybe a little bit of money beating down some. at least some of them, kelly. >> so true. >> while you're right there. can i quickly ask about what's going on with la quinta today? >> la quinta right behind where you are right now, the stock, remember, it priced at 17 bucks a share. early on in the trade it went all the way down, maybe 2%, 3% and people thought, oh, no, it's going to be bad for la quinta

but the shares just about an hour later have started a phantom grind tire up session highs, a pretty decent move for la quinta, a nice debut for this mid--scale hotel chain, the third hotel company backed by blackstone to come to market in the past six months. >> an incredible busy week for ipos, busiest week since '70. >> talking to some of the traders, they are getting ready. today is a lighter day. coming up later this week on friday, four more coming where barclay's will be the market-maker. >> thanks, sir. >> 12 minutes to go before the close. dow almost 175 points and even la equipmenta has turned around sand in the green. >> tech stocks a major force behind the two-day rally. our next guest says beware of a bubble and why he says this will not have a pretty ending. that's straight ahead. ♪

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all right. we're taking a look at a market that's having a pretty good day on the back of the fed minute, plus 175. the best day for the dow and s&p in some three weeks. >> yeah. our next guest thinks high valuations are not the only sign had a we're in a tech bobble. he's rob cox, editor with reuters breaking news and here at post nine.

welcome. >> glad to be here. >> are you calling the tech bubble here right now, it's happening again? >> yeah, but i don't think it's quite so bad as all that. it is a tech bubble and evaluations, almost not worth arguing about. what you're talking about are multiples on made-up metrics so it's really hard to kind of say there's almost no way to financially justify these things. however, what i tried to look at, let's look at some of the other stuff and governance, let's go through the s-1s and say how is it different this time? pretty extraordinary what you see. the multiple share classes, there's a lot of talk about that and everybody is coming out with them, not just tech guys. ken mollusk, deal-maker extraordinaire, has an awesome setup where his guys get ten votes for every one of your votes and they are put in a partnership that votes 92% for the company. virtue financial, delayed a little bit, but those guys have four classes of shares, right,

but then if you look beyond that, not just the duel class or the quadruple class structure. you've got this really -- companies like grubhub, box, incredibly disruptive and really disruptive innovative companies but they have the most retro grade governance. grubhub is a great exam. poison pills all over the place, bylaws that mean you can't come in and rattle cages. >> why is this a sign of a market bubble. are you basically saying people want equities so bad they will take them regardless of what kind, almost like the equivalent of -- >> it's pic toggle and all that. shareholders. that was bondholders back in the boom who said i don't need any rights, just give me yield. shareholders saying we fought for years to get rid of things like staggered boards like only on 11% of companies in the s&p, grubhub and box, all these guys come out with classified boards. basically they are saying the heck with all the rights we fought so hard for, that holds

the shareholder value revolution. throw it out window because i need growth companies, so what you see is the equilibrium between the providers of capital and those who need capital, the consumers of capital is completely skewed right now, and to me that's a sign, apart from the wacky valuations that we can look at, that the market is clearly kind of lost its -- >> and we'll have more on this very issue next hour. rob, thanks so much for being part of the discussion. people need to know what's going on here. doesn't get talked about enough. >> back with the closing countdown. markets are surging right into the close. >> after the bell, when you think of bentley you probably think of high-end luxury cars, so why does the automaker now want you to think about speed. we'll hear from bentley's ceo later on the "closing bell." keep it right here. you're watching cnbc, first in business worldwide. siness world.

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biotech names, also a group to keep a close eye on, and they are having a nice rebound, especially celgene up by better than 6%. what do you make of today's action after the minutes? is it something to really build on the last couple of days or be wary of? >> no, i think it's something to build on and i think that the earnings season is going to at least meet expectations. a good chance that we see a -- the earnings numbers will fuel another rise in the market, and in the short term i think the market goes up. intermediate and long term we're very constructive. >> what about the nasdaq? this pullback that we've had in some of the names, a lot of carnage. >> yeah. >> it got pretty ugly. >> who is to say that's over? a lot of people say it's not. >> i think the carnage is -- is normal. i think when you see big rises in stocks like the biotech names and some of the social media names, it's only natural that they have a pullback before they

advance again. the high-quality tech names trading at reasonable valuations. >> yeah. >> they have a long way to go. >> what do you make of the so-called old tech names doing pretty well, the microsofts of the world that are at 14-year highs? >> i think they are at 14-year highs and end up going back to multiples that are higher than 14 or 15 times earnings like they are trading today and another reason why the bull market has a long way to go before it's over. >> are you kidding me. you're not worried about anything that's out there? maybe earnings disappoint. i note fed delivered a dovish message last week. the minutes today suggest that things are going to be low for long. you know where i'm going on that? >> well, i do. in the short term there's always a lot to worry about, but when you think about what competition there is for equities, i don't know where you go with your money. i mean, are you going to put money in bonds or stick with equities and wait for stocks to get overpriced? today they are fair value. no reason to worry about it. >> the vix is still pretty low. wonder if there's a bit of complacency in the market. >> i don't think that the public

is in the market yet. you look at-month flows, they have only begun to move in the direction of equities. there's a lot of money to come out of bonds. >> good to see you. best day for the dow and s&p in three weeks. kelly evans and a guy picking up it on the second hour of "the bell" right now. >> yes, welcome to the "closing bell." i'm kelly evans down here at the new york stock exchange where it is a strong day across the board on wall street. how much of it has to do with the minutes out from the fed about two hours ago? that's exactly what we're going to discuss, but first take a look at how we're finishing up the session with the dow up 180 points. 1.1%. the s&p 500, adding about 20 here to 1872 and the nasdaq bouncing back, up 70 points. that's about 1.7%, 4183. that's the level there, and let's get right to it with today's panel. joining me now is our own eamon jaffers who escaped along with

mary thompson and here esteffies in link and with us is "fast money" trader dan nathan. welcome to all of you. stephanie, the rebound here, we're seeing pretty strong correlation actually across the indexes. what do you glean from? a one or two-day phenomenon, or does it continue? >> i think the fomc meeting was a big catalyst for the market because they basically thought that they were going to worry us, so they had this emergency meeting talking about what are they going to do? how are they going to communicate the message that they want and basically very haven't changed? they didn't get hawkish like we all thought. the market sold off and they sold down the high growth stocks, the cyclicals, and now with a little more clarity the stocks that underperformed are now actually playing catchup, and on cap of that you had very good commentary yesterday from alcoa. things aren't falling apart globally and a lot of pockets here in the u.s. that are doing quite well. >> you, nathan?

>> setting up for a perfect second quarter. >> for the market? >> yeah. >> all of the weather stuff, the dog ate my homework and it was the weather. we're going to put all of that behind us, and all of a sudden we'll see in the next quarter it's actually going to be kind of good, and i believe value is what's going to get the attention at this point because i think people still good. investors a little skittish. i like prf, you can pick stocks, you're a better person than i am. i like going out and getting all of the large company value that will be prf and let it run for a while. people are skeptical. they don't know where to go with the money. the dividend in a lot of stocks is better than the treasury, so why not, and i think that's how to play it >> dividends are an interesting point here because they are still pretty low by historical standards because a lot of companies increasing them lately could be one reason to get involved even though we're at or near highs, nathan. what say you? >> listen. i agree with your prior guests. stephanie mentioned that there's some pockets of strength here. you know, as we head into q1 earnings season, we really need

a raise. to suggest that the weather and all this stuff is kind of baked in the cake at this point, you know, to me you forget that we're 1.5% or less from the all-time highs in the s&p, so, you know, i don't mean to be too cautious here. there's a good scenario here where the s&p 500 bangs around between 1,800 and 1,900 for maybe a couple of months until we get some more clarity, and let me tell you, that would really frustrate the heck out of a lot of investors, maybe be a great scenario for a lot of traders, you know, because you can really identify certain ranges and i'll make one last point. where did the s&p 500 stop, right at its 50-day moving average? things are trading very technically and for investors who don't pay attention to that stuff it may make sense. >> you mentioned sort of a market for traders. the extent to which for the last month or so we've seen low correlation between a lot of parts of the markets. in other words, it has been a stock pickers' market. there hasn't been a lot of

volume. today was kind of indicative of that as well. the conviction, i'm not sure it's there, people are taking on and putting down a lot of positions. eamon, what's your take on all of this? >> we learned or re-learned that the fed worries about us as much as we worry about the fed. this interesting question of the fed guys grappling with how their message is received on wall street and in the media and how it translates, you know, sort of like this game of note-passing where they are passing notes to us and we're trying to decipher what they meant and passing it back to them. they are spending a lot of time trying to figure out how to send signals to the market that the market can accurately understand. maybe we need a meeting of the minds. >> isn't that just an absolute waste of time for a central bank? mean, when you think about it, like we said. >> right. >> the s&p 500, equities are at all-time highs, and they are worried about a few percent selloff in the last few weeks, or they are worried about companies that have just gone public in the last year trading at 25 times earnings, you know, declining 30%. to me it seems ridiculous.

>> hold on a second, dan. >> go ahead. >> you're right in a lot of respects, but there were some stocks and some sectors that got hammered. the high-growth, high-flyers. >> dell down 20%, 30%. >> they should have been. never should have gone up. >> everybody doing good last year is not doing good this year. >> some shouldn't have been up as much as they were. you're telling me celgene should be down 24% when this company has a pipeline. it has great growth prospects. it has a fabulous balance sheet, and yet -- and trades at 20 times earnings so there's certainly stocks that came down that i think i think can see a recovery for sure. >> mary thompson, what do you say? >> i agree with dan in that we'll be stuck in a trading range going forward. first of all, the comments from the fed were very dovish, markets reacted. we've had a big bounceback. we're going into earnings season. for the most part the negative pre-announcements have been fairly minimal, but i'm not sure we'll see a lot of positive

momentum or positive comments from industry that says come in and buy our stocks. remember, a lot of stocks have gone up on increases to dividends, on stock buybacks, not expecting any great revenue growth from the first quarter. >> it will be very interesting on friday. jpmorgan, wells fargo, i mean, a pretty clear read to some extent on what's really happening out there, and in the midst of all of this, actually wanted to bring into the conversation now. u.s. economics editor, of course, at "the economist." great to see you on a day like this. what do you make. reaction and what we saw on those minutes from the fed? >> well, it's interesting. the minutes hammered home the point on a number of occasions that while they were changing the guidance taking await 6.5% unemployment rate threshold, they didn't want to us think there was any change whatsoever and what they thought they were going to do with interest rates and we were all taken by the change in the dots that suggested a flightily faster pace of tightening, janet yellen's comments that maybe there would be six month before

the end of quantitative easing and the first rate hike and we kind of ran with that. i among others overinterpreted that information and here the minutes remind us what janet yellen told us at that meeting. no change really in their reaction function. >> hey, greg, it's eamon jaff s e -- eamon javers up here in new york. >> the fed spends all the time that it spends trying to make sure that we understand it correctly. does that tell you that this market is really hanging the hat on the fed too much at this point? >> yes, and there's nothing new about that. i've been covering the fed for well over a decade now and that's always been true, you know. the fed is such a dominant role here, but even when we were arguing over whether it was going to be, you know, march or april or may or june that they would tight ebb, we were only discussing differences of three months. i think what we have to keep reminding ourselves is far more important than what the fed is telling us is the data, and in the last month or two we've had data that suggests no compelling

reason. >> it wasn't data that drove us today, it was words. it was words. we're backing off a time line and we've been backing off the time line for about two or three weeks now and it was the fed's words. their actions, yeah, we're looking at that, too, but it was the words they were using, that's what drove this market today. >> absolutely. the words are talking about what will the fed do a yore from now. >> right. >> and what the fed does a year from now will be dominating overwhelmingly between what the data does and not what janet yellen or their colleagues thought they would do six years ago. >> greg, what do you think is the most important data piece to watch, you know, let's say even just for right now, certainly between now and then. >> so i think that one of the striking things that comes through in the minutes is the emphasis on nominal wages as the key indicator of markets. we've heard time and again how we're getting conflicted messages, things from the short-term unemployment rate and long-term unemployment rate which is high and indicators

bouncing around and one thing that's relative is wage growth. right now it's not, so i'm looking at wage numbers, looking at the employment cost index, those ones, i think, are ones that we'll have to pay special attention to. >> nathan, on an anecdotal level, does that -- how does that jive with earnings season? in other words, if we start to see corporate earnings decline or come under pressure to some extent because companies have to pay out more in wages and there's an interesting little side note about this in morgan stanley's downgrade of wages, tesla is bidding up wages, and especially for i.t. people across the auto space, you can agree with that specific example or not, but that would be progress of the right kind, correct, even if it put pressure on the margins? >> if input costs go up across the board and not just wages, that's going to crimp earnings, and where we've seen a lot of earnings growth come from over the last few years is share buybacks. greg's point is a good up. the data the fed is looking at. what did they do, made a dovish

statement, why, because the data is not great and they are worried. the economic recovery is okay at best. to me i want to make one really important point, i think. we'll look back at some point in 2014 and we'll remember the carnage that was done with some of the high-growth high valuation names and we'll see that was the spot where investors kind of gave us their -- showed us their hand that they are really not comfortable owning a lot of stuff that just doesn't make a whole heck of a lot of sense at this stage of the recovery if the recovery is not that strong. >> so you think it's a preview of 2014. we're getting a glimpse now of some bigger move that's to come. >> it's coming to a theater near you. a lot of the high valuation names, you know, they are going to make a run back to the previous highs. many of them will never get there. just think pets.com and some of the other stuff are, and maybe it's yelp, maybe it's pandora, i don't know. watch inventories. >> inventories were flat. >> in the gdp report. >> whose inventories? >> inventories are coming in

flat for the quarter as as we take a look back. >> the first quarter. >> sales are rising. if sales rise you actually might see businesses hiring something other than a robot and talking about jobs, 62% of america makes $20 or less an hour. i'm sorry, that when we talk about creating jobs, we need a lot of revenue and when you see the stock market gains going meaningfully, i think those are gains you can believe in. until then it's a lot of financial engineering around here. >> kelly, listen to what the companies are about to tell us, right? we are just about to learn a whole bunch of things, and we learned a lot of good things last night from alcoa so let's listen to what these companies say and then we can make a decision as to valuations and which stocks will do well. i think the cyclicals will continue to do well because overtime the economy will see an improvement. >> dan said companies like yelp may never see these levels again, the highs. do you agree? >> i think there are certainly some, right. some stocks that really didn't deserve to be at those levels but pointed out celgene or known

facebook or even google for that matter, there are certainly names that came down with the whole gamut, and i think those are the ones you want to pick at. >> great. thank you, guys. dan, thanks very much. greg, thank you, sir. be sure to stick around and catch dan, nathan and the rest of the "fast money" crew coming up here at 5:00 p.m. a facebook fewery is building, and an activist facebook shareholder taking the company to task for political contributions to politicians whose views are opposite to issues that mark zuckerberg supports. and take a look at this bentley, almost half a million, this is the ceo of bentley motors who will be joining us later in the show. you're watching cnbc, first in business worldwide. siness world. gunderman group.

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welcome back. some breaking news on jpmorgan ceo's jamie dimon. seema mody joins us. what's going on? >> kelly, according to a recent s.e.c. filing, jpmorgan's ceo jamie dimon made $11.8 million in 2013, down from $18.7 million in 2012 after what was a tough

year for the bank, but let's put that in perspective. shares of jpmorgan did gain better than 30% in the year of 2013. kelly? >> all right. seema, that number one more time. >> $11.8 million in 2013. >> okay. great. seema, thank you very much. 11.8 million, what could you make of it? >> conflicts with earlier reports that said he got a raise to 20 million. need to figure out how the s.e.c. actually giles that. a lot of that was restricted stock and i think that had something to do with it because in 2013 he was given an $18.5 million restricted stock grant for that. >> this is going to give fodder to a lot of critics who have been upset with jpmorgan in the wake of all the penalties and fines that they had to pay last year, paying jamie dimon any significant amount of money. a lot of critics who think jamie dimon led jpmorgan has paid too much in fines and restitution to the u.s. government. >> but the company still continues to make a lot of money and that's the argument on the

other side and why shouldn't he be paid for performance and if the it continues to perform you should pay him. >> fixed a lot of the problems quickly and had a huge settlement with the government. he fixed it and now you move on and now let's see what he's requesting to do and this year is a year where you'll see a lot better earnings going forward. >> getting a lot of credit for running something too big to fail and if they are too big to fail they are probably too big and having said that it's a very challenging job and to that extent he's getting pretty well to do it. >> facebook under fire getting major backlash from shareholders from political contributions saying that politicians facebook is donating to have positions that don't align with the public views of the company. let's bring in eamon javers to start this off. you've been following this story, eamon, and tell us, first of all, what's going on. >> a piece of a broader trend that we're seeing with particularly liberal groups trying to make the point that ceos and leaders of large corporations are donating corporate money to political candidates based on their own

personal world views and political views, not necessarily what's best for the company or even what is consistent with what the company has said in the past so there's a big effort going on now by shareholder activists to try to hold those companies accountable to what they have said their corporate values are and to see if their donations politically square with those or these are more tactical donations that they are making. >> let's bring in julie goodrich, a major player in this story, the ceo of northstar asset management which owns over 55,000 shares of facebook. julia, great to see you, welcome. >> thanks, great to be here, kelly. >> so you -- >> go ahead. what's your specific issue? as a shareholder of facebook with what this company is donating to? >> well, i think it's interesting that eamon pointed out that the ceos offer give money to political candidates that support their own values, but in this case the ceo's values and the values of the company are not that far apart. what's interesting about

facebook is they have been making political contributions to candidates that consistently undermine the values of the company and of mark zuckerberg. >> julia, let me ask you this question. how much of this today and the pressure that we've seen on companies like molesa is coming from companies that are able to donate more because of the citizens united desoirgs what have you, and now shareholders and the public more generally is look looking for more transparency, or is this an issue that has a long history, long roots, et cetera? >> no, certainly, political contributions have increased in the public eye as well as in actual dollar amounts from corporations since the citizens united decision back in 2010, and we've owned shares of facebook, relatively -- we bought them last year, something like that, and basically what we're concerned about is that there is a lot of public awareness of corporate political giving, and when you look at companies like facebook that are

social media sites, as soon as consumers and, you know, kids under the age of 29 find out that 41% of facebook's political contributions are going to candidates that hold values that are in direct opposition to facebook's stand on lbgt equality, we're going to have a problem. >> marry in. >> julie, i wanted to ask you question. obviously you've probably spoken with facebook about it, and i'm sure one of the reasons they give to these candidates is there's a business decision behind it that would probably override what they do in their own corporation and what they even may believe personally, so what are the reasons for giving to these candidates who are in contrast with the beliefs that they hold at the corporation and personally? >> well, there isn't a good reason. i mean, basically what they throw out is this concept of business interest, but, in fact, we believe that especially with companies like facebook, facebook is acting against its

business interests. one of the big issues that's come up is that they supported 22 of the sponsors and co-sponsors of the stop online piracy act and pippa, which is another thing that both facebook and mark zuckerberg have made public statements that they oppose so my question would be why in the world are you making these kinds of contributions to these guys when there are plenty of other candidates that hold the same values that you do, that would be as supportive of your business interests as anybody else, okay? >> facebook, by the way, has not commented on this. eamon. >> isn't the answer to your question kind of self-evident here. what do you think is in mark zuckerberg's head as he makes gain contributions to politicians that don't square with things he or his company have said on lgbt rights and other things? what's the snaens why is he making those contributions? >> because like most companies we've talked to over the last

four years they have absolutely no idea why they are making those contributions. >> are the lobbyists making the contributions for them? are the lobbyists telling them who to contribute to? >> no, in fact what's happening. they have somebody who is actually in charge of public policy at facebook making the contributions. you would think he would understand what the facebook brand is all about. >> aren't we threading the needle? >> they are not paying attention. >> we sit on the floor of the exchange and everybody says politics and how we believe is so polarized and on the other hand we go look inside of a contribution budget of a multi-billion dollar company and find one thing we don't like and all of a sudden we're moving in a direction, being hostile about it and business is about business, and if we continue toy think go down this path of picking everything apart, that's in my opinion going to be the tough road to follow because it's -- it's not -- it's not possible to do quite honestly. >> jewel? >> well, it actually is incredibly easy to do, and basically what you're doing is

you're taking sort of an archaic view of the whole process of political giving. every single contribution -- >> you look at the analysis of political contributions and what it gets in washington. eamon wouldn't have a job if it wasn't for all the money that's sloshing around. i tell you, he'd be up there with a can of pencils and dark glasses, nowhere in the world. it greases the system. how can you say that it's not an integral part? >> we're not saying that these companies can't make the political contributions. all we're saying is why don't you take -- take a look at what you're doing, what you say you're doing and what you're all about and then make your political contributions, and if you feel like you need to make a political contribution that apparently violates your company values, you know, tell the shareholders about it so we can tell that you have actually paid attention to good governance and know what you're doing. last year at the google shareholder meeting we had the same exact resolution, and smid

h had no idea that they were the key sponsor of the stop online piracy act. i mean, that's just ridiculous. >> you're inferring that zuckerberg does not have any idea about his company is doing and it's the policy-makers that have all the control? >> yeah, and i think that even -- they are not connecting the dots is what i'm saying. >> okay. >> they are new. they are the young players in the sandbox. they have got a lot of money to throw around and it's really important for their business model, to shareholders, to advertising, for crying out loud, that they pay close attention to what their values and their business interests. those two things are not separate. >> julie goodrich, thanks for being here. >> we learned had a with target. >> thank you. appreciate it. >> bed bath & beyond is out with earnings and seema mode joins us with the numbers. >> reporter: bed bath & beyond, in line with expectations $1.60 in earnings and $3.2 billion in revenue for q1 in line with

street expect. guidance for the second quarter lower than street expectations, comparable sales at 1.7% versus an analyst estimate of 2.5%. remember, back in early march the company did cut its earnings guidance blaming disruptive weather for a number of temporary store closures. we're seeing shares of bed bath & beyond down about 4.7% after hours. kell? >> all right, seema. thank you. he's been called one of president barack obama's most important financial advisers. robert wolf, ceo of 32 advisors joins me next. we'll get his take on the controversy over high-frequency trading as well as the state of the economy and the economy when we come right back. come right . the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones

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i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. call or click to open your fidelity account today. welcome back, "slash boys," the book on high frequency traders, and i sat down with brian rogers and here what he had to say about it. >> nothing like a michael lewis best seller to bring really the spotlight on the practice and we think that anything that undermines investor confidence is bad for the system, and to the extent the individual investor thinks there is fast money being moved around on wall street that disadvantages the individual investor he or she is not going to invest and not feel confident in the system so i think the scrutiny on the topic will be very good long term for the marketplace. >> so will bringing high speed trading under the regulatory

moik scope calm the concern individual investors have? joining me is robert wolf, ceo of 32 advisers and also serves as outside adviser to president obama. welcome. >> thank you, kelly. >> what did you think when you heard michael lewis say the stock market is rigged? >> i'm a big fan, with him at solomon brothers and i love his books. i would not say the stock market is rigged. what i would say is if there's investors getting advantaged by front-running clients which i think is his concern with high frequency trading, then that's unethical. any time there's someone getting advantage to the general public market i have a problem, even if it's a technological advantage, if it's a front-running purpose, but i don't think the whole market is rigged, but i think that what the t. rowe price gentleman said is you have to make sure you have confidence in the system. investors need confidence, mom and pops need confidence so at the end of the day it's critical to scrutinize this whole

situation. >> brian rogers did go on to say that he thought that perhaps a fee for cancelled orders, something like that, would be a good way of getting that particular practice out without hurting the rest of the markets because the concern here is regulators in washington are going to adopt wrong kind of response, in other words, something like a financial transaction tax that could hurt some of the individual investors instead of helping them. if the president were to call you and say what should i do about that? what would you say to him? >> i don't think everything can be rules-based. some things need to be principle-based, and there's a principle there's no insider trading. there should not be front-running and those things should be regimented -- >> should and principles don't matter. it's unfortunately the case, and that's where we're come, have to make it very specific, legalized unethical behavior is practically the name of the game. >> i think we're a bit in the gray area and rehave to rectify the gray area so the question is do they have information that the general public does not have, or is this technological

advantage something that everyone should be able to benefit from? we're not sure yet? it's a pretty new phenomenon. even if it's a technological advantage and you're doing something to the detriment of the client, then that's unethical, and if it's unethical you may not be breaking the rule but we should try to prohibit it in that type of way. some things will stay in a gray area. such a dynamic business that not everything can be written down in every book. it's one of the problems with dodd/fra dodd/frank. tlikd when it was 85 pages, don't love it as much when it's 10,000. >> on a kind of related note because it does go back to the confidence people have in the market. pit bull told howard stern when asked what he does in terms of his investments, howard said do you invest in the stock market and his response was no, i don't trust that market? i mean, this is the psychology today, that the market can't be trusted. >> it's funny. i'm not in stocks either. >> personally. >> it's not because i don't trust the market.

it's just because for me i've always been in the fixed income markets. i know it better. most of the companies that are doing incredible today. that's not something i'm as save on. you know, i'm learning about social media and the whole technical revolution going on so, you know, i think i'm a smart guy but things i don't know i'm not going to put my money in. >> that's a lot of today's equity markets. >> that's a lot of the equity markets. >> imf has come out with lighter protections on loans. there's talk about how well, for example, the junk debt part of the market has done even as equity has been selling off. do you see froth in credit market and fixed incomes and if you were the fed would you worry about that? >> no question in this low-rate environment that is going to continue that people are stretching for yield, whether it's stock market return or high credit. >> or greek debt. >> whatever it may. >> or pakistani debt. this is not dissimilar to where we've been before. the markets seem frothy to me, okay, on some of these lower quality situations, but i'm not

surprised that people are chasing for it. we are for the most part for the foreseeable future we'll stay in a low interest rate environment and people don't want to put the money under their beds so they are chasing. i think it's a little dangerous when you chase. >> i guess that goes back though to the chuck prince line, when the music is playing you get up and dance, right? >> i've been in the market now 30 years. the first 25 years we used to say every fifth year is not too good. there's some bubble. unfortunately, that doesn't work anymore. we can actually say it's been four out of the last five years almost. >> yeah. there's no question we'll have volatility. would i like to think i'm a leading indicator. today i'm up to 180 on the stock market. >> but you're not in it. >> and if i came yesterday i'd be down 150. we vin credible volatility right now, people are nervous. the smart investors have been playing the market well, but poem are nervous right now and we have a reversal of some of the emerging markets recently. last year, you know, everyone got imploded on emerging markets.

the stock market was the big trade. it's reversed a little this year, you know. i think we're in volatile times, and usually when we're in volatile times people are chasing things they shouldn't be in. >> great way to put it. >> thanks for being here. >> thanks for having me on. >> up next, medicare mayhem, a doctor collecting nearly $21 million in medicare payment. seems outrageous but by all accounts he played by the rules. goes back to what we were just saying. perhaps the rules need to be changed that. story next. also spring breaking here in the east and a great way to roll down the highway and do we have the car for that. the new bentley is right outside the new york stock exchange. we'll talk to the bentley ceo to see how the high end car market is doing. that and more straight ahead. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection.

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welcome back. in the past we've heard stories of patients gaming the medicare system, but are doctors doing the same? a story today has many wondering just that and scott cohn joins us with the head-shaking details. >> head-shaking, jaw-dropping. a lot of cases doctors have been at the forefront of this, kelly. we do know the numbers involved in health care and health care entitlements are huge. a $900 billion budget, $77 billion paid to providers last

year and some got a whole lot more than others. this is new data released by the department of health and human services, numbers the agency had kept under wraps for decades. so meet america's top medicare dock tor, salomon melden of south florida who collected nearly $21 million of taxpayer dollars. he's been under federal investigation over his billing. his offices this south florida raided more than once. his attorney says his client always build in accordance with medicare standards and blasted the feds for release the unfiltered data, others including the american medical association have raised similar concerns, but as we found out two years ago in our cnbc documentary "health care hustle" medicare fraud is rampant, $4.3 billion recovered last year alone. the administration says releasing these numbers will help inform the debate and maybe, they say, reduce the fraud. kelly? >> scott, thank you very much. we now are joined by the president of the american medical association.

dr. hoven, great to have you with us. what's your reaction to these disclosures? >> clear lit mesh medicly the a association is not opposed to transparency of data. it's very clear we want to look at value and what's going on for patients for our country, for cost of case and at the same time simply raw claims data is frequently inadequate to look for any problems around fraud and abuse, for example, so we have to be very careful. the data has to be direct and used properly and interpreted correctly. >> my apologies, the satellite feed there, the quality of that was lagging a little bit, but i think you heard what she just said. they are concerned that people are going to jump to conclusions with this data. one concern that i heard specifically from them is that perhaps it was a pool of doctors and not just one who was collecting these fees. is any of that defensible? >> doctors have been arguing this for years saying it's

basically an invasion of doctors' privacy to tell everyone in the country who is taking taxpayer dollars and how much and i can't think of another example where taxpayer dollars are spent and you cannot find out, not a public record where the dollars are spent. if a federal contract is let, taxpayers can go on the internet and find out everything about the federal contract, including who got it and doctors have resisted this kind of disclosure. today is the first day can you go on the web and find out how much every doctor in the country took from taxpayer dollars this past year. >> part of the concern, the medical community's concern as well, correct me if i'm wrong, people will look at these numbers personally and not use an intermediary and jump to their own conclusions and avoid a doctor or treatment that could potentially help them out. >> there's that and they will worry some of the these figures seemed extraordinarily high, doctors getting millions of dollars from the federal government, they think that money goes directly into the doctor's pocket. that's a gross figure and not a net figure for the doctors and

some have a lot of built-in overhead costs and insurance and everything else, so that's not multiple millions for that doctor to go out and buy a lamborghini but it is a lot of taxpayer dollars getting spent and the reformers say you need to see who is getting that money in order to keep them honest. >> don't want to put you on the spot. do you have a sense of how this data could be better parsed to give a truer picture of who might be gaming the system? >> i can tell you a couple things about it frustrating as a user, one of which that you don't get the grand totals. you have to go back and i'm not an xcel spreadsheet mastermind, you have to go back and figure out what the doctor's grand total dollar amount is. not very user friendly. average americans will have trouble with this. a lot of technical gobbledygook and hard to understand. the information is out there for people to look at. reporters, lawyers, investigators and others to go and find, and you look for the outliers and look for who are the people who are billing, you

know, hundreds of thousands. >> what medicare should be doing. sorry, nathan. >> that's all right. >> one of the best ways i found in my career to police things that are going on in washington in terms of fraud is sunlight. if you can look up the campaign contributions, you can tell who the politician is getting his money from, you can tell exactly who he is making contributions to. >> shouldn't they be doing that exactly. >> this is cms, center for medicare and medicaid services. had it for deck sglads wouldnad >> it's like we're jumping over dollars to worry about nickels. we have an organization that's huge and won't let them negotiate price breaks. >> why the government or the oversight or whatever the right word, is had this data and has had it for decades, why couldn't they have applied the simple outlier test to find the guys who have been trouble in their own states. >> they said basically there's just not enough employees at cms to handle this. putting out billions of dollars. every employee is putting out

hundreds of millions if you break it down on a per transaction basis. >> be sure to tune in to "squawk on the street" tomorrow to catch a rare interview as well with ian read, chairman and ceo of pfizer and the incoming chairman of phrma as well. lots to talk about him as well. weather is starting to warm up. still bringing the heat online. the cnbc hot list is up next and tomorrow tune into "closing bell." we'll have a special guest panelist, rick harrison, the star of the history channel's mega hit "pawn stores." you don't want to miss that. we'll be right back. 'll be righ. (vo) you are a business pro.

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...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration. welcome back. it is time for the hot list. allen wasler joins us. what's popping online? >> you gave us this little gift, kelly, your interview with bill miller top of your show. with quotes like throw a dart at them. they are all going up for stocks, and, you know, this market is not going anywhere but up, well, people are just loving the super bowl here. this story has not pulled less than 120 readers a minute since we put it up a little while ago. >> and he'll be on "squawk box" in the morning. >> big time, big draw, the world needed a bowl. people are interested in fed minutes, number two. combing through the story and taking out every little bit, did they really say that, even that? did well for the market today so

it's doing well for us, too. finally a pickup from "usa today." these went out and they secretly tested 19 tax prepare errs in unregulated states. what did they find? 17 of them failed the test so think about that as tax season rolls up on you. if you're using a paid tax preparer, you may want to think about that. >> that should give people something else to worry about. thanks a lot. >> take care. >> managing editor of cnbc.com. up next, life in the uber luxury lane. that's a new bentley, take a look. park right outside our studios. bright red inside and out. about how the luxury automaker is faring in this economic recovery. we'll be right back. pags pags cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest.

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welcome back. it is finally feeling like spring here in new york city. a perfect day perhaps for a drive and nothing like doing it in style. we're outside the exchange exclusively with bentley motors president. welcome. >> thank you. >> so you can tell us a little bit about what this beauty is right behind us. >> yes. this is our bentley.

the bentley value is outstanding luxury with performance. >> i was reading through some of the stats for this vehicle. 60 gig bite hard drive. is this a computer or a car? >> no. it's the top of the segment. but, of course, we need modality and connectivity at times. >> and you have an interesting example of that, i understand. >> yes. so we have integrade ipad connectively feature. wi-fi, so you can relax in the backs and entertain yourself and answer your e-mails. >> oh, my gosh. >> and a little bit more -- you can enjoy champagne while you

entertain yourself. >> so how much does this car go for? >> $450,000. >> $405,000. you just reported a jump in the number of cars you're selling in the u.s. are people buying these cars all cash? where is this money coming from? who is buying? >> we are speaking of successful entrepreneur. it's for successful people and some making business in the industry in the world trade. >> i was going to ask because after the stock market last year, we have seen people cashing in. i was wondering if they're buying cars as well? >> this is part of the explanation for the start of this year. >> incredible. stuff. so let's talk a bit about this auto market. you did the luxury segment. right now it's recall after recall after recall. what is a recall today and what do you think of the safety and

the status of a lot of vehicles on the road today? >> totally important. cars have to be totally safe. safety is number one concern. if a mistake happens, of course, we have to organize. i can tell you on this car, the e ipads are functioning. >> they're in the backseat as well. where do you see the most opportunity around the world right now? >> in china in the last year and today middle east is very strong. >> where does bentley go from here? >> we continue to emerge and develop ourselves. we have a new 2014. >> a hhybrid, correct? >> as we speak, new technology. >> looking at tesla which has

captured the buzz and excitement for the car industry in the last couple of years. are you going after that segment of the market? >> no, not at all. we have to be consistent. the bentley composition which is of luxury and performance. consist with our definition. >> and speed. >> and speed. and you have 25% more. >> thank you for being here. now i have a ride home, right? >> yes. we can have champagne in the back. >> perfect. we'll be right back after a short break. stay with us. with us.cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with people.

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geico. fifteen minutes could save you fifteen percent or more on car insurance. welcome back. you've got to stand outside for final thoughts. it is so balmy as you can tell from stephanie's overcoat here. >> sorry. >> is this a metaphor for the market at all? >> we've got sales tomorrow and actually get family dollar and pier one and bed beth and beyond. we have to see what they have to say. >> yeah.

>> but it was much more guidance. we have to see if it's more than weather. >> what are you keeping it on? >> value, watch for value. the investors are going to say i'll take a dividend. >> i'm keeping an eye on him because he wants to take the car. other than that -- >> people at home doesn't know this car does have a new car smell. we don't have smell avision here but it smells nice. >> it smells better than most new cars. >> absolutely. >> i don't know. i want to get in there. but i don't think we're' loud. we're just allowed to stand next to the car. >> i like the local news microphone. >> what mike? >> i'm going to be watching bankers at the end of the week what are you going to be watching? >> the mike. >> our discussion that we were having earlier about the medicare system, we're going to be hearing more.

>> absolutely. we have been looking into what's in this new database. i think a lot of people around the country are pouring into it now. >> mary, on the financial earnings. jpmorgan, wells fargo, we saw bank earnings for the country as a whole decline for the first times in several years. at this point mortgage business under a bit of pressure. >> markets business under pressure. still improving credit quality. >> what's the story? >> maybe some continued improvement in the credit quality. better notes on the nim things like that. >> some comments coming out from jamie diamond. thank you so much. we appreciate it. it is time for fast money. melissa lee joins us. what is on tap. >> as you know huge rally across the board.

tonight we're asking which stocks would they fade, which they would sell. >> over to you guys. >> fast money starts now. we start off with a market alert. today stocks jumps. nasdaq is leading the charts. powering higher, facebook closing on more than 7%. here's the chief operating officer had to say on the today show. >> you have unloaded about half of your facebook stock and some people say is she planning to leave facebook soon. >> i'm glad you raised this. a good chunk of what was sold was all for taxes. there's confusion on that. i have plans to stay at facebook. i love my job. >> that's not the only reason the stock is higher. we have got an analyst to