your eyes... to the 6-cylinder, 8-speed lexus gs. with more standard horsepower than any of its german competitors. this is a wake-up call. ♪ welcome back, everybody. welcome to "closing bell." i'm kelly evans here at the new york stock exchange where it's been another wild trading session. bill? >> often return to turnaround tuesday. we've had several turnarounds today. a sea of red arrows a short time ago. a rally on the open this morning. the nasdaq though for a time was leading the way to the downside, and the major averages have now turned positive except for the nasdaq which was positive a moment ago. the definition of volatility. >> and that index was down

almost 2% of the lows of the session. look how quickly rebounced back. >> that 1.2% decline put us right at the correction move. we were down about 10% from its recent house, maybe a bounce off that level is what we have? >> haven't had a correction in the nasdaq since 12 to. yahoo! is going to report earnings. the question is how much will that affect trading activity as well? >> that and a couple other companies will be reporting tonight as well. >> speaking of fast moving changes, if you were watching this show yesterday, you know anything can happen in a final hour of trading, and here's what we were talking about. 3:00 yesterday, the dow fading fast. only to do a stunning turnaround in what some down here, yes, were calling the shaq rally. there he is. when bill and i started interviewing the former nba great here at the exchange,

maybe coincidence. >> i think not. >> the real point of all of this, we need to get shaq back on the floor right now. >> i think the traders would agree with that. that was an amazing bounce we saw. >> that shirt doesn't really show it justice. >> you can see the whole decline and, boom, right at the end, so what is really driving activity in the final hour of the show yesterday and day, anybody's guess but shaq might have had something to do with it. >> a lot of excitement at the new york auto show. mercedes is about to unveil a brand new model no one has gotten a look at yet. the german automaker excited about this new car. what's so special? >> they will show you and the rest of the world coming up in about ten minutes. >> now, here's where we stand on the markets. the dow is up 55 points. there it is. 16,229, the level there. the nasdaq, as we mentioned, just barely green, less than a point, and the s&p 500, broad market index is up 8.5 points

today, half of 1%, bill. >> here we go. today's action in our "closing bell" action with amy wu and bill smith from s.a.m. advisers and dan mcmahon from raymond james and rob morgan and sheila joins us from the nasdaq market site given all of the volatility there today and, of course, rick santelli joins us from chicago. sheila, i'll start with you. is anybody trying to look at the reason for the volatility? >> the action we've seen here today is unbelievable. at one point we were down about 1.8% here on the nasdaq, four and a half month low. basically now at flat levels and erased all the losses. traders say this is a market that will continually try to test the lows. tried to break that 200-day moving average. didn't quite make it so maybe you're seeing a reaction to the fact that you didn't make it. maybe you're seeing short covering particularly in the

high flying momentum names and biotech names and a lot of people run clear right now. the only thing i'm hearing definitively, earnings, earnings and more earnings, a big week for tech earnings. >> rob morgan, what are you doing in this market? >> well, kelly, i still like stocks overall here, even with the volatility. i think really the cold weather in the winter and, of course, the ukraine crisis has held us back a little bit here, but i think we're going to see a pretty decent earnings season overall here. stocks certainly aren't expensive at this point, and the retail investors still haven't gotten back into the market, so i'm still -- >> we learned that from charles schwab this morning to some extent. has your view, rob, changed from january? >> you know, not really. i started the year really liking small-cap growth stocks and, of course, we've seen big-cap value stocks do better. i really think that's kind of a head fake right here based on what i mentioned before. >> really. >> the cold weather, the ukraine crisis. i think, you know, as the year

goes on, we'll see the small caps and the growth stocks do better. >> you're adding to positions here in the small-cap space? >> absolutely. absolutely. >> wow. >> amy wu, this kind of volatility is a trader's dream. i'm not so sure it's a dream -- it's more like a nightmare for individual investors, but what do you make of this volatility? does it act more like a market topping out or a market putting in a bottom right now? what do you think? >> well, it's certainly true that we are seeing more volatility, and one thing i've been saying since the beginning of the year is obviously with the fed taper going on, the bernanke put effectively removed, this is more of a normalized market. this is what you're supposed to be seeing. we sort of have gotten used to less volatility because of the put that had been in place. one thing i'll tell you though -- >> let me just say -- >> let me just say the bernanke put, for those who don't know, was knowing that the fed was going to be there to add more liquidity, if possible. sort of put a floor under the market for a while there. go ahead. >> yeah. that's exactly right, so i think to some degree it's the fact

that people have gotten used to such lower levels of volatility that this does seem quite surprising. one thing i would add to that, you know, there's a little bit of sense of deja vu. if you remember last year, there was a defensive-led rally. we're seeing defensive leadership now, but that was followed by a bounce in the higher momentum names. a lot of people in the options put market are trying to play that through call options. >> bill smith, what about you? are you looking at going bargain hunting and picking names in the mall-cap space, maybe some of the momentum names here maybe? >> definitely not. typically looking for event-driven companies so johnson & johnson which reported great numbers this morning, the new ceo alex gorsky, has a huge portfolio of companies that he's able to now divest, spin off,ette, using those funds to either buy back shares, increase the dividend or reinvest in some of the faster growing companies under the j&j umbrella. same thing with occidental

petroleum. you're basically looking at divestitures, things that you don't have to necessarily bet on momentum names. >> what about some of the companies, bill, so inquisitive, googles of the world, twitter's shares today are rebounding nicely, i should add. >> dealing with such a massive hangover of the ipo. i hate to call it a bubble. the speculative ipo market that's putting great deal of pressure on investors in that sector so there's a lot of money coming out of certain names and still playing the catchup game with the ipos. >> rick santelli, seem to have a conundrum today with yields on the ten-year at a one and a half month low and that would suggest a rush to a defensive play of some kind, but gold, which you would think is also a defensive play, is down at a two-month low, down $25 today. pars it out here. >> i think between marching calls and liquidity looking for a home, geopolitical issues, i think it makes sense, and i think that, you know, it's a mistake for investors or

actually listeners and viewers to think that the markets are super logical all the time. for 2012 and 2013, you and i, many guests had many debates that the price level of stocks didn't necessarily match the activity level of the economy so when it unrevels, why should there be logic? everybody is trying to ask why is this happening, must be rhetorical. let's look at the next 24 to 46 hours. find that china's growth rate is the lowest in two decade. japan will lower their growth outlook. both countries are question eing into the roof line and when it comes to the u.s. the curves that's the flattest in close to seven years. we've seen the relationship to bunds in ten years, the widest it's been in ten years so i don't see how some of the rates can go up in the u.s. on a relative value argument it doesn't make sense. one final thought, keep a very, very close eye on what's going

on in the dollar/yen because the leverage nervousness will show up there just like it is in the de-risking of equities. >> dan mcmahon, help us make sense of it all. >> well, i think if you spoke to investors a couple weeks ago the overwhelming consensus is that it was very difficult to find value in this market anywhere across any spectrum in the globe. what you're seeing now is an opportunity, and you're not seeing panicked selling, people taking money and de-risking a bit and buyers are being very passive and waiting for the market to come to them. what we have this week, now that we're full into earnings season is thursday will be a very important day. it's a low-volume week with spring break going on around the country, and thursday with options expiry is going to create liquidity event and will allow people to go forward. >> we're hearing about the trend towards defensive plays again, going back to the dividend payers, going back to the economically sensitive stocks like the foods and health cares. is that where you're going? >> outperforming the high

flyers. you're seeing a bit of outperformance in the defensive names but they, too, are for sale. you mentioned earlier this type of market can be a nightmare for the retail investor and we don't necessarily believe that's the case. you have to expect these kinds of dips and pullbacks. >> intel and yahoo! on tap, dan. how important will those names be for some of the beaten down parts, and especially like you said of anything that ends in tech in that sector? >> i think the tables have been set in tech, and these are obviously bellwether names coming up, so they can change the direction in one fell swoop, but, you know, starting to get a little bit of footing as we pull back to 10%. starting to see a bounce. those names will tell you whether it's a real start for the next leg up or just a dead cat bounce on the way lower. >> very good. thank you all. appreciate it. >> good to see you guys. >> more with you later. >> 50 minutes to go until the close. up 45 point. like the weather in denver.

if you don't like it now, it will change any moment now, and the nasdaq is down 8 points. >> like the random number generator of the payrolls report. >> the nasdaq heat map, nasdaq 100, not exactly a sea of red. getting a few more greens creeping in there. we'll tell you which tech stocks are dragging it lower the most. >> drum beat of earnings. getting louder. yahoo! intel and csx all posting results after the close. don't miss interviews coming up with stacy smith and michael ward in the next hour. >> today only, for one day only, like a groupon sale, google glass available to the public for a cool $1,500. the pros weigh on if and when google will see a significant revenue stream from this high-profile entry into wearable technology. >> you know, groupon or some sort of discount may not have been a bad idea, $1,500. all the same, mercedes-benz's new super car promising to go from zero to 60 in less than

four seconds, and wait until you see what it looks like. mercedes-benz usa, a new first seen on cnbc interview coming up next. up next.

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crazy volatility day for the major averages. the dow all over the border, up 99 points at the peak and down 110 at the low. nasdaq, same thing. down 1.8% at its low today. now back in positive territory, and the s&p is up ten points. what a day. >> dominic chu joins us now. what's moving markets here today? >> it's like deja vu all over again. the same kind of action in yesterday's kind of trading. start with the big names moving in today's trade. coca-cola and johnson & johnson both moving higher after reporting strong earnings. the coke ceo telling cnbc that the beverage giant was regaining its momentum. and a strong day for twitter as well in the social media front. earlier it announced it's buying social media provider ginnep for a small sum and a different story for aaron's, the

rent-to-own furniture and electronics store rejected a $2.3 billion takeover original from vintage capital management. instead, it went out and bought a retail credit financing firm for $700 million, and we're going to end with zebra technologies falling after it said it would buy motorola solutions enterprise business for $3.5 billion in cash so zebra, yes, down towards session lows. kelly, bill, back over to you. >> thank you very much. the new york auto show is taking over new york city this week, and mercedes unveiling its highest performance sedan. >> phil lebeau has a sneak peek for us. >> forget what's under the hood. what's under the car cover? what do we get to see this? >> reporter: a world debut. steve, let's tell them what this is all about. >> let's get right to it, the world premiere of the s-63 amg coup. >> this is your performance line, but what stands out about

the s-63 in your opinion? >> for me the s-63 is where beauty meets intelligence meets raw performance. i mean, i think if this car were a person, it would be kate upton with a harvard degree who could outrun usain bolt in 100 meters. that's how accomplished this car is. >> you haven't announced pricing yet but somewhere in that $150,000 range, at least for a start at that point. that's rarified air in the auto business, but you believe you'll see pretty strong demand. >> such a strong lineup for us to continue to flex our muscles at the top of the automotive range with the s-coup and the amg lineup it benefits the entire lineup, for the cla up to 29,9, that's quite a model. >> you have to tell everybody the statistic. what percentage growth did you see in your amg lineup last year? >> we saw significant growth. up 74% this year. >> 74%. >> so we're out of the gate

strong, and that's before we've even launched products like this, so it's going to be a great amg year which speaks to the strength of the marketplace. >> i know bill and kelly have questions for you. guys, go ahead. >> we do. >> oh, boy. >> i'm laughing at that line. kate upton with the harvard degree. >> still working through that one. >> wouldn't a kate upton car be bright red or something? what's the real revolution this represents in terms of innovation, if any, steve? >> what i'm trying to say is this is the most beautiful car we've put on the road, and we coupled that with intelligent drive, essentially the most intelligent car. sees the road ahead of you, uses sensor to sense accidents and respond before you could, level of intelligence combined with that beauty and adding the amg brand to it and rockets from 0 to 60 in under four seconds, faster than a porsche, a pretty powerful combination. >> clearly this is on the high end. what about the low end? i'm curious. i see all the models out on the

road now, steve. where are you taking that model right now, and i'm curious about hybri hybrids, too, will you ever do something like that? >> so the c-class, hybrids will eventful find their way. the c-class launch comes in september so an all new generation c which takes all the technology from the s class which just launched last year, and you'll see that in a c-class at a price point of under $40,000, bringing the technology from our high end product and eventually you will see it throughout entire industry. >> phil? >> one last question here, steve. you saw sales of greater than 300,000 vehicles last year, record year in north america, in the u.s. specifically. is most of that growth coming from the mass market brands right now, or is it coming from the other luxury brands that are out there? where do you see most of your growth? >> well, we're conquesting kind of from across the board. the cla is 80 conquest rate.

for the new card we just brought in. eight of ten people brand new to the mercedes-benz franchise. some coming from luxury makes from bmw, audi, lexus, coming also from toyota and volkswagen and we've invited new people to our brand. >> do you get up to 350,000 in sales this year or is that a little ambitious? >> fighting for every extra car we can get, but we'll have another record. >> a constrained environment but a very successful one. steve cannon, the head of mercedes usa on a day when first on cnbc you had a world debut with the s-63 amg coupe. >> a beautiful car. >> constrained supply environment. >> yeah. >> very interesting. you know. >> production is trying to keep up pace with demand. >> in some parts. >> absolutely. 0 to 60 in 4.5 seconds, where am i going to do that? if i try that on the palisades

parkway the cops are on me in a nanosecond. >> you have to find something, surely not the acceleration right, that matters, but just that end speed, so anywhere you can go 60, start and stop and go over. >> kind of like the markets today. >> heading towards the high of the day. >> up almost 90%. the nasdaq adding 14 after being down, you know, much more than 1% not long ago, bill. >> speaking of innovation, google is hoping to see a lot of green some day from google glass, but will the buzz surrounding its hot wearable product wear off before the profits come in? >> general electric, one of the most widely held stocks in the country as questions about ceo's jeff immelt's successor make the rounds on wall street. we'll discuss when is the right time for a ceo to go. don't go anywhere. back in two. back in two. in the face of danger, and under the most demanding circumstances.

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welcome back. here's a look at shares of google. both classes of the stock are lower today as part of a broader downturn in tech stocks that we try to watch here into the close, anyhow, to see if that's still the case. the tech giant making google class available to the public for the first time ever and for today only. >> yes. one day only. did we mention that they are selling for $1,500, by the way. josh lipton, how many pair did you buy? were you logged on by 9:00 a.m. this morning? >> no, bill, actually, i borrowed mine, 1,500, a little steep for me, but google tells

me they are not sure what demand is going to look like for these so they could run out of the devices. we know google glass has its critics. complain about the price and design of the eye wear and raise privacy concerns. people don't want to be recorded without their consent. fans though, they tell me the eye wear gives them a hands-free way to connect to the world around them and has the potential some day to replace their smartphones if google can create a battery that lasts longer and create more apps. up until now you had to be a so-called explorer, users were referred to the program by friend. google says there's 10,000 explorers out there. what does this mean for the bottom line? not much. the real benefit of google glass is reminding investors that they say the tech giant is still capable of being innovative and forward thinking. >> we think the stock has benefited from let's see the perceptions associated with the company, in part related to

projects like google glass which give people a sense that google is much more than a digital search company at this point. >> and no problem if you order google glass and don't like it. a company says you have 30 days to return it. kelly? >> all right. we'll just leave it there. thank you, josh. >> i was going to say are you returning it? but he borrowed them. >> google glass is a hot topic. will this heat up google's bottom line? welcome to you both. >> lance has been showing off here during the break. i mean, he already tweeted a photo you took of us while we were in commercial. >> that's true. >> now i'm recording a video. >> show off. >> and i can see it glowing in your son? >> mario, my 20-year-old sob was over for dinner and works in the technology field. he wants a google glass, and i said to him what are you going to do with it?

>> right. >> what is it for, and he didn't have a real solid answer. that's a problem. an answer for which there are very few questions. >> a lot of people don't have an answer, very telling that your 24-year-old son in technology really wants that but has no clue as to why. that speaks to a lot of pent-up demand about the cool factor that google is denying. have people really found really useful utility worth $1,500, and i think that's the question a lot of people are on the sidelines waiting, not tech enthusiasts or google folks. >> there you are. >> i actually think there are use cases for this. agree with mario. too expensive, $1,500, but as a journalist i've been out there reporting with this thing. that is a revelation, it's exciting. google has been trying to educate people on how you can use it to train people. in the medical field, you know, seeing exactly how something

works, or cooking, you know, you want to see how to cook it, see it from the point of view of someone putting their hands in the ingredients. use cases but it's always telling that they have called them explorers, glass explorers. >> that's what they are selling you. they are selling you this idea that you are an explorer, and it's all about marketing. >> i think that they are going to be different grades of this thing. i think this is v-1 of wearable technology. what you see now, how it works now, it's going to change. it's going to get cheaper and going to make more practical sense for more people. >> do we want more of this kind of technology, whether it's the, you know, the glass right here which has had specific privacy concerns raised about it, user concerns? any role for questioning the extent to which we want this proliferation unabated? >> there's always going to be the question of whether we're pushing the boundaries of privacy or if technology is going to be used in nefarious ways. that will always be there. shouldn't stop innovation

because of our personal fears. in order to grow as a society we have to be comfortable being uncomfortable so with that said i do really agree. being hands-free is a tremendous huge opportunity, not just for people that can use their hands but for people that can't also use their hands. so we're going to see this technology being used everywhere from hospital centers to people just walking on the street corners and using it for everyday activities. >> i agree this. hats feel of a transition technology. it's not done yet. >> that's right. >> what is it going to look like? >> going to get lighter, smaller. already seen they have integrated it with good looking glasses, but at some point they will clip on to any glasses. you won't have to buy anything special. >> they have patented the contact already. it will get smaller and lighter and more battery efficient which is critical. this won't last a whole day if you record video all the time. a lot more applications. just updated to the latest version of android which means more people will build applications that work across the network.

>> i'm going to sound like a father, mario. people are going to drive cars wearing something like this? they will be walking down the street running into other people. i mean, there are safety issues here, right? >> look, you already know the answer to that. google has already worked on the autonomous video. you won't need glass to buy a car because you'll buy google's car. >> i've driven the car with these, by the way, you don't sit there and pay attention. you'll have stop dropping down and blinking and stuff. you've got to focus on the road, but at some point you'll have a head'sup display, when you sit in your car glass will switch to the display. >> my head hurts already for talking about this. for people thinking about whether to buy it today, anything you can do with glass aside from taking pictures and videos and tweeting them? >> you can get news, e-mails, send messages. there's a bunch -- search, get directions. >> where's my ipad? i can do that anywhere. >> but you don't have to strap it to your head. >> unless you would want to. >> thank you guys. >> thanks, guys. >> thanks, mario.

>> see you guys. >> see you later. >> half an hour to go into the close. at some point we'll be able to read this on our google glass, bill. the dow is up 83 points, the s&p 11 and nasdaq 15. after a volatile session we're pretty much calming down a little bit here into the close and looks like if we hold these levels it will be a positive segment. >> how is the economy really doing? we'll talk to business editors from different parts of the country to get the pulse of main street usa, and they are seeing different things on the economy. might surprise you coming up here. >> like a "closing bell" facebook, i love it. >> countdown to earnings from some of the biggest names in america, yahoo! intel and csx all posting results after the close. we'll tell what you numbers the street is looking for coming up, and i'll speak with top executives from intel and csx to break down the numbers. keep it right here. you're watching cnbc, first in business worldwide. siness world. all stations come over to mission a for a final go.

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welcome back. boy, the volatility continues

today. the dow now up 80 points, almost back to the highs of the session when we were up 99 this morning, but in the meantime, the dow was down 110 points. now it's making its way back. the nasdaq at one point today was down 1.8%. it's now back in positive territory, and the s&p is up 11. >> yet the vix is lower. >> go figure. >> gold was down sharply, yield on the ten-year back down to 261. >> volumes light so it's the easter week so people are already gone, bouncebacks coming. we hear reports that the u.s. is economy but what is it really like and what's going on on the ground. >> all economics are lockeral. we'll take the pulse of the u.s. economy with business editors from different parts of the country, thomas lee with "the san francisco chronicle" and rick pearson from "the chicago tribune" and steve sire from the "globe" magazine in boston. good to see you. different parts of the country

there. let's start in san francisco. t tom, positive, negative, how do you read san francisco right now? >> probably mixed. on paper the economy seems to be growing quite well. unemployment is below 6%. as you know, the city is dominated by tech companies. they are raising a lot of venture capital so on paper it seems wonderful, but when you go on the street, i think the main thing on people's mind is the cost of living in san francisco, especially housing. rents here are about three times above the national average, and that's cautioned a lot of tension between the technology and regular people, regular people, just trying to make a living. >> there might be a theme here, rick, because in chicago i hear anecdotally the residential real estate market is quite strong, but you describe conditions there as being passed over, speaking of passover, by the recovery that the rest of the country may be seeing. >> yeah. we're seeing those reports of reports on the national level,

but when you look at things like unemployment, you know, illinois itself has the second highest unemployment rate among the states in the country. you look at fact of unemployment in the chicago area, 9.9% in february. yes, mayor rahm emanuel is trying to do more to encourage moth more of those tech ventures to come in, encourage more venture capitalists but at the same time it's not translating, like tom said, to the street level where you're seeing people really have uncertainty about this economy in this state. >> and isn't it interesting, steve, you got a similar story to tell there in massachusetts. depends on where you are in the state on how you're doing economically, right? >> absolutely, and in greater boston, which is another technology-driven economy, it's really booming, and i were say that dozen translate to the street level, but if you go beyond 25 miles of boston to the rest of the state, an entirely different picture, and, you know, everybody is anywhere from average to struggling there.

we've got a lot of small to medium-sized cities outside that area where the unemployment rate is still anywhere from 10% to 14%. >> wow. >> does everybody feel though at least like whatever the jump start activity in the core of the city and some of these sectors is spreading, that at least the momentum is there, or would anybody describe what they are seeing as being a, you know, the process going in reverse or it's peaked or over. i mean, what do you think, rick? >> i would say that i think as far as chicago i think there is some momentum that's developing, but, at the same time you have underlying financial problem both at the city and state level and both being crippled by very significant pension debt costs. there's an attempt with the state to try to deal with that. illinois has the nation's most unfunded public employee pension debt of $100 bill yofnl the state has taken steps for that, but legal challenges to that that could take a couple of

years further adding to that uncertainty and, you know, of course, companies looking at tax issues, those kinds of things. i think there's some real concern, you know, about expansion, business expansion. >> thomas, what about you? jerry brown getting a lot of credit for bringing the state back from the fiscal crisis it was under. what does job growth look like in your parts of the state? >> it looks really healthy. the main issue on everyone's mind is whether or not this was a bubble. you know this region was the site of the first dotcom bubble back in 2000, so with prices rising in both houses and prices rising around turning to valuations, the question is this a bubble? >> does it feel like it? >> it does. i think, you know, this is cyclical. always boom and bust, and you can't really justify the growth of rents and valuations that companies are seeing so the question is whether or not -- whether it pops how bad will it be and how bad will it trickle

down to the rest of the economy? >> steve, i can't sit here and think so much about the last cycle, how it played out and whether things will be different this time and how alienated the middle of the part of the country or the income spectrum or whatever you might describe must feel from this and it's corroborated with the surveys you see with fewer people involved in the middle class or participating in the stock market. if that's the case, what do you do about it? >> well, i think as it relates to the stock market, i absolutely see and feel that all the time. in terms of, you know, ultimately the spread and growth of jobs is what's going to change that, and going back to this issue of where in our area jobs are physically concentrated and in what industries they are concentrated in, i agree. remains a big problem. if you were to look at, for example, the number of jobs that were created in this state in the most recent month, about 4,000, that's a net number. if you were to look at -- slice it up into categories, you know, there's one category that's

technology, research and technical firms, basically what we're talking about. over 6,000 jobs, about 150% of the net number. >> right. >> so it gives you an idea of where that concentration is here. they had a big problem. >> but that seems to be a big problem, whether in terms. markets doing well, sectors doing well, not yet disseminated evenly, whether it ever will be. >> thanks all for joining us. steve syre, we know this is an important day in boston, and we all wish you boston strong there. thanks for joining us. >> thank you. >> big anniversary day. >> you bet. >> heading towards close. 20 minutes left in the trading session here. >> yeah, that's right. the dow is up 68. right now the s&p 10 and the nasdaq 10 so we're off a little bit from the levels we saw just a couple of moments ago, but, again, the message is that what we saw in the middle. day is being overcome, we should say, perhaps, by the turnaround tuesday. i think that this would be the 13th out of 15 this year if we do end in the green. >> we've had like three turnaround tuesdays today. >> and we're not finished.

>> more earnings, yahoo! intel, csx, all post results after the close. dominic chu will highlight the numbers to watch out for when we come back. >> and with the big tax filing deadline hiding at midnight, we want to know if you're getting your money's worth. tweet us @cnbcclosingbell. we'll share the numbers with you later in the share. ter in the s. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online

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welcome back. heading into the close here. 15 minutes to go, in fact and still green across the board. the s&p 500 to give you a sense of what's happening is up by half a percent or the dow by 54 points right now and the nasdaq up .1 of 1%. >> now, what will set the tone for tomorrow, you ask? well, how about a trio of big earnings that are coming up after the bill. dominic chu has a preview. >> all bellwethers in some way, shape or form. we'll be with yahoo! who will report first-quarter earnings after the close. they are expecting a gain of 36% on ref nufs $1.08 billion. the options market here for yahoo! is expecting a priced-in move of 6% up or down after earnings for yahoo!. they are currently up about 2% in trading today. also, semiconductor giant intel

reporting after the close as well. it's expected to earn 37 cents a share on shares of about $12.8, options traders expecting an up or down move of 3% of the stock for earnings for intel and up .5 of 1%. in a programming note, in a first on cnbc, ceo stacy smith will be on live to discuss the results for intel and railroad operator csx out with its bottom line and it, too, expected to earn 37 cents a share and options traders expected to move 4.5% for the some up or down in trading on the heels of it earnings, and in a cnbc exclusive interview csx chairman and ceo michael ward will be on live next hour to skrus those results for csx as well altrincham-packed hour on the krebl on the earnings front. >> how are you possibly going to fit that in in the next 30

minute? >> 30 minutesch each one probably, to discuss, and chat, something like that. >> meantime, an event to go before the close, 14 minutes left. the dow is up 74 points, holding its own and so is the nasdaq, up 10 point, off the lows of the day. >> a late day real for the second straight day. another reason why this is the most important hour of the trading day, so how high will we close. keep it here. we'll find out in 13 minutes. ut. afghanistan, in 2009. 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. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. without standard leather. you are feeling exhilarated with front-wheel drive.

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coming up on the ten-minute mark, if you just checked in to see what the markets are doing, this tells one slice of what's happened today. a lot of volatility. the dow was up 100 points at open this morning and then down 100 points at one time midday, and now we're back up 84. the nasdaq was down 1.8% and now up 15 point. the s&p is trading higher right now as well. ed dieke joins me from jhs capital advisers. volatility reigns here, obviously. >> in this range between dow 16,500 and dow 16,000, seem to be yo-yoing towards and back and forth through it but no direction of whether we're going to break higher or lower. >> does it make you want to buy something or sell something? >> makes me want to sell something, stay out of harm's way, at least for the next

couple of month. i don't think the earnings over the next few days, bill, will be strong enough to propel the dow above 16,6. i think there's probably some resistance there, probably will come down to the high 15s, 15,5, 15,9, but the second half of the year, our economy and the european economy are really going to pick up steam and one of the things that we think is a big catalyst at the end of the year will be a decision on the keystone pipeline in august or september. >> when do you start buying then. what are you waiting to have happen? >> next quarter's earnings. >> a buying three months from today. i think this quarter's earnings, just can't see it. can't see how thrill be good enough with the winter they with had in the northeast, can't see how they will be good enough to propel the market higher. three months from today is a day to start buying. >> plenty of people have been going into defensive stocks for that very reason, the reasons you're itemizing right now. they want to be invested but don't want to go to the high growth, high momentum stocks that we're doing so well prior

to this period so they are going with the foods and utility and all the traditional defensives, why don't you do that? >> i do. those are core positions, so the cash that i'm talking about is that extra cash and we're trying to do something smart. buy those stocks all day long and hold them. particularly smart to be buying them right now? i don't think so. you're putting yourself out of harm's way but you're not necessarily making a great trade. leave a little cash and i'm really fully invested but right now is a good time to have a little cash. you see the dow pull into the 15,000 somewhere, 15,5, 15,6 and buy the confidence and i wouldn't just buy the high producing stocks, don't buy the pie in the sky biotech stocks that may or may not have a cure for canser. >> any ideas? >> the one i like the most right now is europe, i wouldn't buy one stock, i'd buy the basket. >> yeah. >> i think europe is two years behind the u.s. so i expect rurns in the european market in the next two years to kind of mirror what we did the last two years and the other play i like

in europe is real estate, reith -- reits. >> a very good place to have money. >> you're expecting a pickup in the european economy, but if you think lower yield on the lock end of the curve means they are expecting a slower economy, why is that happening right now? >> the bond market has been tough to figure. first maybe you thought it was a flight to quality which is why interest rates, you know, came lower. we would think that eventually interest rates would go higher. the bond market has not given a significantna. all the more reason, bill, to leave a little money on the sideline to try to figure out what the treasury is telling you. >> do you want to buy some treasuries here in. >> at these levels i don't see the upside. for the large institution playing, you know, for a move in interest rate, fine. for the retail investor out there, our investors at jhs capital, don't see over the next ten years that it will be worth it on treasuries. >> interesting stuff. good stuff, ed. >> thanks, bill. >> we'll come back with our closing countdown here in just a

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coming up in the last three minutes of trade, let's review, here's the dow today. volatility, up 100 points on the open this morning. sold off to midday and down 110 points at the low of the day. and now we're up 76 as we head towards the close. as i said, we've had three turnaround tuesdays just in one day. nasdaq, same story. at the low of the day we were down 1.8% and now we've come back with a gain of about ten points, so we've hit a couple of important support levels for the nasdaq. earnings coming out tonight. get this, bob pisani, so we've got ya, intel and csx reporting. what kinds of numbers are they expecting from all three? expecting a profit of 37 cents from all three companies. what are the odds? >> all three. >> same thing. >> same thing there. >> here's the problem. earnings haven't mattered yet at all, so we've had the banks, okay, decent numbers.

>> mixed numbers. >> jpm. >> citigroup, all right. we had johnson & johnson today, good numbers. markets didn't move on in a. >> coca-cola, and the stock was up 3%. >> but nobody is talking about earnings right now. instead, everybody is talking about the strange stock market. that chart of the dow, a stupid chart. up 100, down 200 and then up 200 again. i'm sorry, that's a little weird, and it's starting -- all of this nonsense with the internet and biotech stocks are now affecting the overall market. >> i was just going to say that, was the tail wagging the dog, the biotech sector yesterday is especially what was dragging the nasdaq first lower. >> how weird is it? the ibm, internet etf, drops 6% intertra day from its high to its low and then rallies back 6%, back up again. come on, that's a little weird. >> how much of is that is a thinly traded market, relatively speaking because this is spring break. >> that's a factor. not only spring back, passover

and either. a lot of people are on vacation. let's not completely use that. do have other issues besides the overvaluation. the ukraine issues and got the strange economic data that keeps coming out. one day it's good and the next lousy. retail sales good. today the nahb sentiment numbers, empire and manufacturing numbers were disappointing overall so we can't figure out where the economy is going. >> i will say earnings will matter when they are an outlier of some come. when they don't come close to expects, they will matter. >> absolutely. >> but they don't matter. >> i'm waiting for them to matter, waiting for companies to come out and aggressively say business is getting better beginning in march. we did see that with one or two of the banks, some of the regional banks who have made that comment already, a i've highlighted them in the morning when they can come out right now, but in terms of being market chatter, it's not there yet. let's hope that it becomes one soon. >> thanks, bob. >> see you later. going out with pretty decent gains. up 80 points, plus for the dow

jones industrial average, stay tuned now. a couple of key executives in two very important industries. cfo of intel and the ceo of csx to give us their sense of where the economy is going on the second hour of the "closing bell" with kelly evans and company. i'll see you tomorrow, everybody. everybody. thank you, bit. hi, everybody. welcome to the "closing bell" the finishing up a pretty wild day. gains and loesds, and it looks like we're going out in the green with the dow up about 88 points at end of the session. the s&p adding 12 and the nasdaq, pesky nasdaq adding about 11 points. 0.2%, 3034 is the level there and what a swing it's been. let's get to it with today's panel and more to make of all the action lately. our shapperson joins us, kevin ollie and kevin lemonis and a bravo performance, dr. j, with

us for more on today's action, "fast money" trader jon najarian. dr. j, i'll start with you. yesterday we were talking whether the intraday lows for the nasdaq were really lows for quite some time. today for a while it looks like that wouldn't be the case at all, and we mngs managed to finish green. what's all that telling you? >> i think a lot of folks, kelly, did go for the head fake, and as we talked about yesterday, a lot of the energy names, whether it was shale. whether it was drillers, whether it was loan processors, we were seeing a lot of "fast money" flowing into those sectors, and the nice bounce out of biotech after being just slammed again today, to see some of those stocks making a stand at that basically 20% correction level for the ibb, that was interesting and i think pretty knottworthy. >> gelly, what do you think? especially the higher fliers, you were talking, and i kept thinking in my mind, every time the ten year, 30 year was inching down, i was thinking

kevin o'leary saying i'm watching the bond market and don't like the rally until i see the ten year going back up. >> the market is volatile because it's looking at the ten year and getting nervous. the story about the ivb is remarkable because just this morning i went up to a 20% weighting and used this to layer in and when i was flying here i lost 6.2%. by the time i landed i got it all back. stop the madness. >> so you're buying into biotechs here? >> i'm loading up. i'm going to a full weighting in health to 20%. >> i thought you didn't own anything that didn't pay you a hefty dividend? >> the story changes. >> no, no, not at all. >> you have to be flexible. >> that's not true. you can buy health and get a really fantastic dividend, one of the biggest cash flow spaces. ten names in biotech that have had the you know what beaten out of them the last month, value there and even a guy like me who loves cash loves value even more. >> so a little bit last week where the biotechs got smashed.

i still wonder about some of the multiples. i know it's coming back but are people thinking they are grabbing a great buy like kevin? >> such a sharp reversal that every trader on the flow is trying to figure out what precipitated that move and the only thing anyone can point to is the headline about a potential downgrade of the japanese economy. the market, just proof that the market will cling to anything and then they started talking about further infusion and question in japan, whether that will eventually trickle back to the u.s. market, the yen fell, and that's what actually pushed the u.s. market higher. >> that's what's so interesting about the action here for the last couple of weeks is every market write-up has been spurious. there hasn't been a clear catalyst for what's going on. not a day when there's a fed meeting or jobs report. a lot has happened out of nowhere which tells you something. >> and we've seen that specifically in the gold market, by the time that closed at 1:30 we've seen the worst day we've seen all year in the gold market

and yet we weren't expecting to see that kind of action based on what we've seen in the last week's performance, but a lot of the gold traders i'm talking to is saying there's nothing really there to have moved gold. >> wait a second, almost at war in europe. you've got to get a move in gold. >> but a downward -- >> what does it take, a nuclear bomb to move gold now? >> don't tempt the gods, kevin. good lord. >> exactly right. a lot of people have now, you know, gotten in, and now they are ready to either get out or have -- feel like they made -- will never make the money that they have seen in the last two years. >> everyone, you can see there on your screen, if you're listening, intel's results are out. they have hit the tape. let's get out to dominic with the numbers. dom? >> what we have here is an earnings beat, slight earnings beat. the headline earnings number 38 cents per share beating the average analyst estimate of 37 cents per share so just a penny beat here. also, sales coming in, we can call it coming in light or slightly light, 12.6 billion of

sales, average estimate was for around $12.8 billion worth of sales. this time around intel is also breaking out its individual business unit revenues here and just the key numbers here. we have for the pc client group, group revenue of 7.9 billion, down 1% over the same time last year. also, mobile communications is 146 million and that's down about 61% year over year. software and services operating software 553 million in revenues, up year over year so intel starting to break down and give a little more transparency into each of its operating groups. gross margins for intel will come in at 49.7%. you can see shares of intel up about 3% in the after market trade. we'll continue going through the number and the conference call for later on this afternoon. but for right now the initial reaction for shares to the up side on the heels of a slight

earnings beat and a slight sales miss. back over to you. >> dom, thanks very much for that. looking at that gross margin figure, more on intel results in just a few moments with the company ceo stacy smith. quick reaction from the panel. 59.7%, again, a company where as we make this transition from pcs to mobile, the real question becomes can they maintain this incredibly profitable business model that they have built? marcus? >> the margins are coming from the corporate side, looks like cap x in the first quarter seems up. the only part of their business with an uptick. those businesses have a lot of client services and consulting that comes with very hefty margins. >> before we get more reaction to that, let's give you another big tech bellwether. also out with earnings, hitting the tape. josh lipton hitting things. josh? >> yahoo! reported the street was looking for 37 cents on 1.08 billion. yahoo! reports 38 cents on 1.07 billion.

looking through display revenue x tack, yahoo! reports 409 million, better than what some analysts were looking for, consensus for around 391 million. search revenue x tack 440 million, better than what the street was looking for, consensus around 440 million. yahoo! reporting 38 cents on 1.07 billion. kell, back for you. >> josh, thank you. on that point want to bring in colin gillis from bgc financial to get his reaction on the yahoo! numbers. thanks for joining us what. jumps out to you? >> so what, jumps out is that their core business, the part that they can control is the someplace advertizing piece and that came in week yet again, around 412 million or something like that, if you're looking at the numbers. the search bit is quite good, but this is another push quarter for yahoo!. investors were interested in this name are interesteded for the ali baba stake.

this company will need to turn around on its own merit. >> let's talk about the numbers for one moment. yahoo! trading today and closing at 34.50. in your view, how much of that share price is the value of the alli baba stake? >> when you look at ali baba, several questions you have to ask yourself, and the first is what will it float at? two years ago when they first sold their stake it was valued at 35 billion, when yahoo! peeled back some and now the range of valuations is anywhere from 130 and with market volatility coming back in, the larger deals will get more difficult to get filled. >> i've heard some people make it this extreme, that a year ago you could have said ali baba was 10 bucks a share and today it would be the entire value. is that overstating it? >> i think if you use an appropriate tax rate, 35% corporate tax rate it's around $20 of that 34 stock price.

>> we just found that, as you said, their core business display advertising weak again. how weak though, colin? are there any signs here that marisa mayer in this area she has control over is making any progress? >> right. the thing i would point to is looking at the underlying metrics for the display and search business. both of those businesses have seen their pricing decline for four quarters in a way and that's troubling. that's one of the reasons why the c.o.o., henrique dicastro is gone and there's talk they may need to bring in a cro, chief revenue overs, focussed in on driving the top line, but certainly the core business, it's still limping along. >> a chief revenue officer. what do you guys call it? >> called sales and marketing. let's get content to support it. you won't sell advertising if you don't have contempt. there has to be a reason for people to go there. >> this is a company -- this company eats ceos alive. just think over the last decade

how many people, men and women alike, have tried to make glamour over substance. >> like the bermuda triangle. >> this is a very special place in my heard, this stock. i watched it go to 280. ate up my entire portfolio on margin calls, took years for it to collapse. i was in boston when they finally called me and it blew up. i was so happy to be alive. i respect it, won't short it again but won't buy it. >> what is it going to do? what does it do? >> that's why you should short it. >> your point is they have gone for the kwlam glamour pick. is that fair? >> i think so. i mean, to me i like substance. i like content, but i don't see the content on the site and hiring somebody that's a tv exec and trying to turn this into some other netflix or something like that. i don't buy it. >> how many people went to yahoo! today? >> i'm on yahoo! finance right now. >> anybody else? >> anybody else? >> so two out of us, that's

good. better than zero. >> i go on there a lot but there must be something to this if some of the top mutual funds, a lot of folks own this, may not even realize because it's in the 401(k), they have to have it, this is something that while some may say where's the content here, what are they going to do next, some anticipating they will figure it out. >> content is -- content is going to be a huge question on the conference call because they have made a series of high-profile hires just recently. the former creator director of al, vent disclosed what exactly they are going to do with these people that they are giving pretty big paychecks to make. >> bring in the talent and let the yahoo! chew them up and spit them out. >> hold that thought and we'll spit it out on the other side of the break. much more on yahoo!'s earnings. dr. j will stick around for that. appreciate it, doctor. >> what the results say about how ceo marisa mayer is doing at internet giant and whether she's still the right person for the job and general electric stock has plunged by 35% since jeff

immelt took over nearly 15 years ago. compare that to more than a 60% gain by the dow as reports swirled that immelt may leave sooner than expected. should there be a leadership change based on that share performance in the panel reacts to that just ahead. and then all aboard for earnings. find out what railroad operator csx says about the health of the economy. i spoke exclusively with the company ceo. you're watching cnbc, first in business worldwide. siness world. ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration.

welcome back. here's a look at yahoo!. shares are trading high. in fact, significantly so after hours. we've got more reaction to those earnings. let's get back to josh limitton first who is looking through the results. josh? >> rerie, of course, yahoo! reporting but a lot of investors and analysts and traders are focused on the performance of ali baba. yahoo! with the 24% stake in the e-commerce giant and the last time we heard from ali baba there was concern on the street about the slowing growth rate. in q-4 ali baba saying that revenue jumped 66% to 3.1 billion, and importantly in that quarter what they are also accounting for is cales of

sankles day, a big online shopping festival, happens every year on november 11 so a 66% jump on the top line. income up 110% to 1.4 billion. kelly, back to you. >> okay, josh. at this point i think every u.s. retailer will be adopting some version of singles day. these numbers, the reaction speaks for itself. let get some more here. an all-star panel and colin gillis and jon narnlgia and also here with some thoughts john steinberg from buzzfeed. colin, real quick to you. yahoo! wasn't moving that much until they disclosed the ali baba number. >> yeah. ali baba is an amazing company, for all the problems with yahoo! right, ali baba is stellar to. see that growth accelerate, for a company its size. it was 51% year over year which is tremendous growth and now they are doing 66%. the key thing to remember, this is the december quarter results from ali baba, so we may start

to continue to see that deceleration in the march quarter, but, still, that's an impressive number, highlight for yahoo! >> what do you do? what do you think about this one? >> well, the ones i was most impressed with, kelly, marisa mayer says they have 430 active mobile users of their products. that's going to be key. >> also. paid clicks, up 6%. price per click up 8%. these are year-over-year numbers. so for any naysayers who say they are not growing, not double digit numbers, and they are very positive and the mobile numbers mean they will be bigger faster going forward. >> really bad numbers off the floor from the previous years so let's keep that in context. >> the quarter is pretty good, look at a beat on 20%, we don't want to think about unit costs, we want to think about overall

top line. display 409 versus a 400 number consensus so on the growth they are showing growth. display in advertising is the key business and on the call, are they talking about new initiatives, those will be drivers. >> the core business is finally turning around and showing growth. it's a pretty good quarter for them. >> clear that the market is moving on ali baba because the core numbers were in the business. it actually broke down 110% rise in profit in the last quarter. that's what's moving the market and that's why we went from 1/461% to the upside. >> and that's why so many investors wonder what yahoo! will be like without it and then will they want to own it and what will we see after that? >> good point, cole. >> you want to ask yourself if you're an investor, what's yahoo! going to do with cash

that lands on their ball sheet. >> how about a special distribution to share holders. >> how about stop spending money on new ideas and give the money back to share holders. >> you mean after they packses on the capital gains. >> pay the taxes and do a special dividend but you'll get share repurchases and more acquisition and original content and long form content that will cost millions and may not turn the company around. >> take the cash. >> at this point ali baba is probably being valued at 150 billion. core business given five turns on eastbound a. yahoo! is actually worth something. worth relatively what aol is worth on its earnings. no head room. >> what you're basically saying it's trading at about five times its core earnings minus some accounting tweaks, if you will. john? >> yes. >> although though, that's not a company many people want to be compared to at this point. >> yeah. >> but i'm giving it a lower end comp. if you want to put seven or

eight times on it, show real growth and innovative stuff you can do that as well. you can't say yahoo! is free anymore. >> yahoo! is actually valued lower than aol before so maybe they do want to be value that had way. >> are we sure we'll get a $150 billion valuation out of the gate. >> who is going to be the seller? yahoo! will be the majority seller selling 10% of the company. enough for the float right there. does ali baba's management have an incentive to price the deal aggressively and possibly have the deal break price? >> also have silver lake in there. silver lake bought a big stake from ali baba employees in 2012 so they will be a seller, no doubt. >> are you sure they will be a seller? >> they will sell some of that. certainly want to start monetizing at least a little bit of that. >> have to start on that. the concern is that it may not benefit ali baba to price the deal too aggressively. $150 billion is a very large number. >> and i think that's the point we're all making. now the upside is priced into this thing. would have been a lot more comfortable if ali baba was only 100 in this price but we're

capturing everything. >> really believe 150. yahoo! sold its stake for 35 billion two years ago and then they got fleeced. >> guys, listen to this. talking about this company in the context of another company managed by somebody else. what is it, a holding company? that's what it sounds like. >> they have done much bert as a holding company than they have running their own. >> that's why you sell the stock here. >> very interesting to see on the call if people think about this being a business and for the past year they have only thought of it as ali baba. >> appreciate it. >> colin, your time was great as well. >> catch dr. j and the rest of the "fast money" crew coming up at 5:00 p.m. as earnings season kicks into high gear, intel ceo stacy smith will join us to break down the chip-maker's results before he even speaks to analysts. don't miss it. also time to pay the tax man. this year more than ever, the richer you are the more likely you are to get audited. the cold hard numbers behind that one, and we want to know

whether you think you got your money's worth from your tax bill. tweet us @cnbcclosingbell. your first responses coming up. be right back. be right back. master of diversi. who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? afghanistan, in 2009. 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. and because usaa's commitment to serve current and former military members and their families is without equal.

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i'm the boss. ♪ honestly ♪ i wanna see you be brave today is tuesday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. welcome back. investors combing through a barrage of earnings. round to you for us now. >> kelly, we'll start it off with yahoo! a big gainer in the after hours. reported a first quarter earnings number of 38 cents a share, a penny better than wall street forecasts. sales came in slightly above

what analysts were expecting. second quarter revenue guidance was in line with consensus views and right now that stock is up 8% in the after market trade so a nice report for them. csx, a rail giant. also out with his results in the after hours session, posted better than expected revenue. down just a half a percent earlier on. in a cnbc exclusive, csx chairman and ceo michael ward will be on live in this show, the "closing bell," in the next half hour so we'll be watching closely for that, and we'll end with intel earning 38 cents a share, a penny better than wall street was forecasting and sales came in better than what wall street was expecting at 12.6 billion. intel shares up marginally in the after hours as well so overall three fairly decent reports early on in this earnings season. kell, back over to you. >> all right, dom. those intel shares moving up about 1% after hours. for more on the company's results i'm joined by stacy smith, the chief executive officer at intel. it's great to see you, stacy,

welcome. >> good to be back. >> a lot of people focused on this line. how profitable can intel be as the world shifts from pcs to mobiles? you came in a little bit above the street estimates, 59.7%, still down from the last quarter, and i wonder will you be back in the 60s here going forward? >> yeah. our forecasts for the second quarter is 63%, and we would expect that as we move into the back half we stay in the low 60s so what you're seeing is really our strategy playing out. a good start to the year, and we're seeing kind of the different elements of the business playing out as expected and nice levels of profitability. >> and is that because of the mix of things that you're making. in other words, is the pc market doing better than expected, the server business or because you're making more profit on even some of the mobile business? >> yeah, you have to look at our top line results. we now participate in a lot of different markets, and we actually changed our segment reporting this quarter to kind of reflect the new intel. what we're seeing in the pc market is stabilization there

and some pockets of strength. in the data center, the cloud that services all these devices and new services, seeing robust levels of growth. we have a fairly big business in the internet of things and that grew over 30% and making investments to move into the mobile space, and you can start to see that in terms of our tablet ramp this quarter. 5 million tablets and on bat to 40 million per year. >> what are the pockets of strength, stacy, in the pc business. >> one segment of the market is relatively strong and mat tour markets are looking pretty good. >> what does that mean in english for those not familiar with this market? >> so companies are buying new pcs, and they are doing it because they have an aging installed base so what they are using is employees are getting older and they can go buy a new form factory, great performance and great battery life.

>> so there are signs of life. >> absolutely. >> in the corporate space. >> this is an important signal, not just for your business obviously but for the economy more broadly. >> absolutely. >> and the pc is a great tool. we've spent a lot of energy to make the form factor and user experience really compelling and we're starting to see that play out. >> how long before intel is inside google glass? >> you know, i won't talk about specific designs, we let the customers announce though but if you're looking at our internet of things business which we're breaking out for the first time, you see a business on path to be more than a $2 billion business making us one of the largest players on the planet, very profitable and grew over 30% in the first quarter so can you start to see our product strategy playing out in that segment of the business. >> surprised that it's as profitable as you say. if the move does move towards wearables and plantables and if we're moving in a wearable

direction, over time do you think you can keep that profit margin where it is? >> you know, our strategy is if we can have a manufacturing lead over everybody else, can do semiconductors that are higher performance, lower cost than everybody else, than any business that we target we should be able to make money over the long term and that's exactly our strategy playing out in this very low power space. i think we yet don't know how wearables are going to play out. you see us moving early in the market. we're making some acquisitions and investment, and, you know, we're going to be there as the market forms and as the winners get chosen. >> yeah. we'll show it's really arrived when you're wearing google glass for an interview. stacy, great to see you. >> thanks for your time. >> tune into the halftime report tomorrow. our own jon fortt will be sitting down to get a take on earnings and what's next for the company. ge shares are off 35% since

jeff immelt took over nearly 14 years ago. should a company's stock price be a factor in determining when a ceo should go? the panel weighing in and after the break how did the rough winter impact the railway business. hear from cfx chairman mike ward. that's all coming up on the "closing bell." keep it right here. pags

welcome back. when general electric handed the ceo title to jeff immelt nearly 13 years ago, suddenly the plan was for him to run the company for the next 20 year, but a new report says immelt may be leaving sooner than that. mary thompson has the details. >> ge declined to comment on the report in the "wall street journal" today referring to it as speculation. that 20-year mark linked to the idea that immelt might stay on until the mandatory retirement age of 65, but he doesn't have a contract and serves at the pleasure of the board and the report says he doesn't have any immediate plans to step down. during his 13-year ten your the stock has lost 35% of its value though he's steered the firm through the recession and focussing it on higher growth energies lying energy. those that got us thinking about other ceos who have been around a while, sysco's show john chambers on the job since 1985

and since then the stock is up and szott by ceo bill ruprecht, the auction house's stock has outperformed the stock since it's been there. christopher conor of sherwin williams, providing strong returns over the ten years. point to the fact that there's no exact time as to when a ceo should or should not step down. kelly, back to you. >> yeah, matter, we know those ten years are getting shorter and shorter so interesting to at least know that there are others who have been on the show since '99. >> a lot of them, kelly. immelt came in in the class of 2001 which included notable ceos like american express' ken schnalt and a year before that bob eager was ceo of disney so a lot have been on the job for a very long time. >> ernest hemingway said retirement is the ugliest word

in the language, sometimes a word ceos need to hear. when is the right time for a ceo to step down. want to ask the panel about this one. share performance itself, should there be any specific targets tied to that? someone signing on for the length of time, is that the best way to run a company? >> how do you treat a founder, has a better understanding of the philosophy that imbeds the company and the second a ceo who is an employee. in any company, including my own, a transition, new ways to look at things, things get steal. >> what should the benchmarks be? how do you assess what is the best time for a ceo to go? >> i don't know if it's a financial metric. the ceo and board have to really communicate about what does it feel like to them. i know when i wake up in the morning i still have fire in my belly. when the day comes, even if the results are spectacular, i'm

hand it off. >> how soon? >> you set a 36-month objective which is three years, either to increase share price or increase cash flow after cap x, if you don't immediate the executives you get fired. that's the way i would like to do business. >> even if that sounds good in practice. >> very good in practice. >> it's not realistic. it's not realistic. >> there's already a management practice that's effectively acknowledged which is when a new ceo comes into the company, they crash the share price, ride the rebound and come in. >> if that's the true measure of success because you can increase distribution and dividends. buy back shares. >> not all shareholders feel that way. cash is the only thing that matters. >> you're the most important. >> at the end of the day this is a decision that rests with the board every single year they get to revisit it. >> that's right. >> i know we're talking about jeff immelt at a 20-year ceo.

fact is he joined in 2001 as ceo. if he was not found to be fit for the job, the board would have decided that before now. >> that's right. >> i think most boards -- >> how do you evaluate fitness? that's the part of the question, should fitness be a qualitative or quantitative thing? >> both. >> i think it's both, and i think that the strategy -- as the strategy changes, as technology changes, i think that's a big part of what a lot of boards are now going through to make sure that this the ceo and the direction of the company fits with the times that we're in, and so that is something that many ceos, and particularly of smaller businesses, are really going to have. >> you're okay if after ten years you haven't made any money with a ceo, in my world you take that person behind the barn and shoot them. >> we talk about not making any money. >> qualitative and quantitative. also things you have to think about in terms of how they deal with the changing environment in, terms of the employees that they have and in terms of their share shoulders or clients. >> i got a lot of tweets when we

started discussing this earlier in the morning on the back of the "wall street journal" article. why do we beat this topic to death about whether a show is leaving and who is going to replace him even if he won't step down for three, four, seven years. here's the issue. ge capital was deemed to big to feel, a company in in addition to a lot of the banks, talked about as too big to fail and potentially too big to manage. who manages a company like this given how hefty it is in the market? it's a real important detail. >> and the other thing to consider how long the tenure of the board members having to revisit this issue every year. a lot of times you have board members with a very long tenure, may be tied to a particular ceo. that may have something to do with the tenure of the ceo even more so than their performance sometimes. >> kevin, let me raise this. pepsico said a ceo needs ten years, especially for companies as big as we're talking about to really execute a vision. >> no way. >> no way. >> a decade. >> i could be dead in ten years. i want to make some money.

>> that's -- you want companies that are going to be well run, well managed. >> doesn't take ten years. >> profitable and making cash isn't part of that metric. >> it's all about priorities. >> what else is important? >> nothing is more important than the soundness of american businesses. >> you're telling me profits are not the number one dna of a business? >> not always. >> am i still on the planet earth? >> profits are a simple to of success and you need the core success and if you're too short term and seen this in a number of different ways, if you're too short term you wind up killing yourself in the long run. >> in the long run you're dead so somewhere in there it matter you make money. >> ten years is a long type. i don't know what the magic number. >> 1,000 years is a long time. >> look at five to eight years, look at period of entry for the ceo and give them time to get acclimated a period of consolidation and a period of decline. >> three years. >> and they say five to eight years, seven years. >> eight years without a profit or increasing cash flow. >> i'm not saying that. >> we're not talking about

terminal -- >> how about increasing free cash flow. you don't think that's possible in eight years. capitalist camp o'leary, i'll fix you. >> for a guy that invests in small business, cash flow isn't there, you give them more than a year. >> 36 months to start a path to profitability, if they are not there, it's over. >> you said they are starting the path. >> they have to be profitable in 36 months or they are dead. >> i see a show coming up here. >> you're dead to me. >> glad he's not on my show, i can tell you that. >> csx released earnings a few moments ago. what's driving growth for the company and what do the numbers say about the state of the u.s. economy? ceo michael ward is here for an exclusive interview and the deadline to file your taxes is about seven hours away. as you get set to pay uncle sam, we want to know whether you think you're getting your money's worth from taxes. great responses from the twittersphere, and we'll get to all of that coming up.

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. welcome back. general motors ceo mary bahr rah finished speaking at new york auto show and is now taking questions from reporters. we're going to listen in. >> excuse me. come on, guys.

>> whoa, whoa, whoa, wait a minute. we've about five seconds from turning around so give us some rooms okay? >> guys, stop, stop. stop, it all right. >> everybody take six feet back. >> let's go. >> back up. >> back it up. >> back up. >> everyone wants a shot, step back. >> the remarks i just shared with everybody, i hope you see we're taking this very seriously and look at all the great things happening from a general motors perspective around the world. our vehicles are being recognized. we're getting great recognition and safety awards. the recognition from our dealers is outstanding, and we're seeing solid steady performance. we will do the right thing for our customers as we manage two this. as you heard parts are flowing. we'll be communicating with our customers on a regular basis. my goal is to get every single

part and make sure every single vehicle is repaired and that's what we're dedicated to do. as it relates the investigation, when the investigation is completed, we will then take the appropriate actions, and as i've said, we will be transparent, so that's where we're at. >> how much longer for the investigation? >> again, you know, when i said when i was in washington and we said 45 to 60 days and we're still on that path. >> when do you think you'll answer all of nhtsa's question? >> we work on those every day. some are dependant to have the full complete answer on getting through the investigation, but we're trying to be as responsive as possible, but we will not sacrifice the accuracy and the right detail of the answers because it's very important. this is a very complex situation. it's very important, but we are working on it with a dedicated team that works around the clock to provide the answers to nhtsa. >> what's the time frame for the completion of the investigation?

>> 45 to 60 days and we're still on that time frame. >> mary, general motors says there's been 13 deaths tied to the defective ignition switch. any adjustment to that number? have you had any action with the victims' families since meeting with them in weese? >> the number -- we've not change that had number, and, no, i've not had any interaction since i did sit down and meet with a group of families that were brought forward. >> have you heard from any of them? >> not directly, i have not. >> have you turned over any documents to the justice department yet? have you given any interviews yet? >> i am focused on the document production that we're doing for nhtsa, actually not to my knowledge. >> all right, folks, thanks. appreciate it. let's go. we're good. >> that was general motors ceo mary bar rah leaving the new york auto show taking a couple of questions from the reporters in the field. a little bit of a scrum there, as you can see. want to get a quick thought here from the panel as to how she

handled that appearance. of course, gm under such fire here for what they did or didn't know over the years about this recall situation. marcus. what did you make of her there? >> i tell you, she's keeping her composure but what i want her to do is bifurcate the issue and look forward at the new product launch that's happening right now in new york and separate this other issue. i don't know that this issue is going to go away quickly. i think she's handling it pretty well. >> kevin? >> i think before this is over we're going to question whether the people's purchase and the bailout of general motors was a good idea or not, because this investigation is starting to rot, and what i think is that we're going to find out that the liabilities go through the bankruptcy in a very bad way. i think this is going to prove that we should never dabble, have the taxpayer ever, ever dabble in the private secretary orthoway they did in this company. >> you think that's the case, sharon? >> i think it's a mess. i think it's an absolute mess, and before it's over we'll be implicating the government's

purchase and control for a period of time of this company. believe me, by the time it's over and lawyers put this through the blender you'll see liability on the tax paifr america. >> yeah. especially when there's so much potentially at stake. >> back in a moment. first though, csx, fresh off reporting its first quarter earnings and coming in slightly better than expected, both in terms of earnings per share and revenue, 37 versus the 37 street estimate and the company getting a slight boost. up half of 1%. let's get to it now with ceo michael ward. michael, thanks for joining us this afternoon. >> thank you for having me, kelly. >> csx, more attuned to what's happening in the eastern part of the country. a lot of focus what's happening in terms of coal numbers as well. how did you manage that 40-cent number? what are you seeing in terms of business trends, even in the weeks since you've reported it? is the u.s. economy recovering? >> it is indeed, kelly, and i have to say i think these are

very solid results considering we had one of the worst winters on record, and it's impacted all of transportation, railroads, trucks, airlines, and i would like to give a sincere thanks to the dedicated, terrific men and women of csx who really worked under some horrific conditions this quarter, but to your question, we really do see this economy as being very strong. as you know, we grew about 3% despite that winter weather, and since the weather's broken we've been seeing a pace more like 10% year over year growth. >> no kidding. >> so we expect -- >> well, some of that obviously is pent-up demand from the weather, but we see basic strength in the economy. >> and where -- >> if you look at the 10% number, what kind of -- what things are you moving around? where are you seeing growth? >> if we look, kelly, at our key markets, about 80% of them have very positive indicators. the automotive market is expected for the year to go grow from 16,2 to 16,8 and the average age of an automobile is the oldest it's been in 11

years. housing market is expected to go from 950 up to 1.13 million starts. that's over a 20% growth. we're seeing great movements of ag from the terrific crop last ag from the terrific crop last year. our business continues to grow. we're seeing growth in crude oil. flack. pipe. we're seeing good strength in the economy. >> what is the most challenging aspect for you now then? >> railroads takes a while to reset. we expect to see gradual recovery throughout the second quarter and see more in the second half of the year. it's a matter of digging through that backlog. getting assets in right position. this winter disrupted things. >> we were just having a lively debate whether you should judge a ceo and when it's time to go.

is ten years too long a period? do you think stock performance and specifically maertter for t length of your tenure? >> i think it should matter. because that's why you're here is to create shareholder value. i have been the ceo for 11 years now. i would say if you're going to sustain a culture, create positive momentum you probably need to be the ceo at least seven to ten years. >> we're going to have to talk to kevin about that. michael ward, the ceo of csx. appreciate it. >> thank you, kelly. >> tax stories heating up the hot list next. features then.of the why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah. his dad is my boss. yeah. vin scanning to add a car.

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welcome back. the eyes of april we'll call it. tax day. now a story about the more you earn the more likely you are to be auditing by the irs. alan. >> this is a piece by robert frank. he's been hitting it out of the park this week. this is basically five danger signature falls th-- signals th the tax man know. big round numbers. whether or not you use an accountant that tangles with the

irs. if you use the word yaut anywhere in your tax return, that means come on at me. people are loving it. that's what we're playing with today. >> go ahead. >> that's been one of the fun ones today. all the tax stuff has been great. >> send that over to us. >> did you get your money's worth from your tax dollars? we'll show you the best ones when we come right back with the final thought. final thought. you are feeling powerful with a 4-cylinder engine. [ male announcer ] open your eyes... to the 6-cylinder, 8-speed lexus gs. with more standard horsepower than any of its german competitors. this is a wake-up call. ♪

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welcome back. it's tax day. did you get your monies worth this year. jeffrey tweets i think we can get more out of our money if we are weren't paying 6% interest. scott, if i have to pay taxes then my assets are more valuable. what do you think about the market guys? yeah? nay? >> it's anyone's guess. >> people talk about the opportunities in equities. i keep looking at the bond market saying interesting stuff happening in the very short

duration. you can make almost 5% on corporate senior loans. we're now at a place where people have stopped talking about debt and saying equity is the only place to be. i'm saying wait a second -- >> they warn about this. >> i think particular longer term investors have been waiting to get back into some fixed income and get out of equities a little bit, get some of the gains and really take those profits off the table. now might be the opportunity to do so. trying to change the mind set of long term investors, it's going to be the same as 2013, is a difficult road for the ad advisers i have talked to. >> that i can reprice now at l 2 and a quarter. >> about tw tw2two percentage p

>> that is a bad sign, kids. >> here you want to tune into cnbc tonight. right after that a new episode of the profit. the scene finale. you did bring a pie. >> i did bring a pie. >> it all starts at 8:00 p.m. eastern time and now it is the title for the start of "fast money." melissa lee, over to you guys. >> "fast money" starts now. yahoo's conference call kicking offment the company's early release. monitoring the call and bringing us the updates. >> and the conference call for intel starting right now. the dow component is slightly higher. we'll bring you the latest throughout the show. we need to start off with yahoo. traders are john and jerry, karen and guy. john and jerry it was all about