now? >> that's great, but you shouldn't pay for a costume, i don't care what it's made out of. >> as a parent, kid wants stuff. i don't give my kid either. >> i don't either. >> dow up 140 point. another good day, melissa. we'll see you tomorrow. see you tomorrow. "closing bell" is next. ng bell". hi, everybody. welcome to the "closing bell." i'm kelly evans here at the new york stock exchange where markets are in rally mode. >> i'm bill griffith. the third day of gains we're looking at, but don't count this in the win column just yet because we've had a lot of volatility lately, especially in this last hour, so we'll keep an eye on this. could go either direction, and what we've had rather positive news today, janet yellen's rather dovish speech earlier and the beige book was rather constructive as well. >> a huge day for earnings after the bell. google, ibm, american express all reporting, and all could be

big market-moving events. information first. top analysis. stay tuned because when the bell rings then the real action may just be starting >> exactly. more after the bell news today called babe weibo. will weibo disappoint? we'll take a closer look. this is the canary in the coal mine stock to see how that sector is doing in the market. >> absolutely. here ewhere we stand. dow up 140 point to about 16,400. meanwhile, the nasdaq, up almost 1% or 38 points to 4072. pretty big pop off of the lows of the session. the s&p 500 broad market index adding 15 points, .8 of 1%, if 1858 is level this hour. >> all right. let's talk about today's markets, where we're going from here in our "closing bell" exchange with abigail doolittle

and jack bouroudjian from index financial partners in chicago and peter anderson from congress asset management, no idea where peter, is and rick santelli is in chicago as well. folks, welcome to all of you. you know, abigail, earlier today, arthur cashin as we all know, the legendary dean of the trading floor here at new york stock exchange said that there's a good chance that the momentum selloff that we've seen lately in the stock market is over. what say you? >> i absolutely love arthur cashin, and he's part of the reason why i'm doing this today, but i have to disagree with arthur on this point. i think there's more work to be done to the downside what. really stands out is this incredible volatility that you mentioned, especially the intraday volatility. yesterday felt almost dangerous with the whipsaws and really reminds me a lot of 2011, not just in terms of the range of up and down over several month but the intensity of some of those days, and it suggests to me that there's something underlying

this fundamental situation, not just whether or not the economy is okay or weather n.2011 it turned out to be around the debt ceiling and also around the u.s. debt downgrade. i think that there's probably something lurking bemeet that's likely to cause some more selling pressure to the down side. >> all the same. some of the stuff that's lurking, peter, has to do with the data this morning, and if you want to talk about the big surprise in the manufacturing report and industrial production, it's the february numbers during one of those month, weather-plagued, as every february, better than expected and revised higher. march numbers were strong. is there more momentum in the u.s. economy here? >> like putting piece of the puzzle together, right? we've got that good data and then janet yellen is coming and kind of putting the frosting on everything today, and i -- i think that's a good thing, but i do think it wouldn't be a bad time to hit the pause button and let's see how earnings actually play out. >> would have been a better time

a couple months ago, six weeks ago? so you're still not getting back in, peter? >> i'm going to get back in probably after earnings come out because i do think right now there's a lot of noise in the market. we're right at the beginning of earnings season. as you said, tonight we'll see some big players report, but i also think yellen is doing a pretty good job now of giving all things too forward guidance. never seen that, or i don't recall seeing that before. usually it's, you know, she was talking earlier about six months. now we're out to two years. i do think that that will help temper the markets just a bit more. >> i don't know. >> when you're at a high enough altitude that the horizon is pretty deep out there, isn't it right there? let's bring in keith fitzgerald joining us now. keith, welcome to the conversation here. as i mentioned, art cashin said maybe this selloff is over for now, but we've had two skeptics weighing in in the meantime. where do you stand? >> i'm going to take half and

half. i think we're 30 months into a rally that historically has been correcting at 18 months so i think it's only a matter of time before we see a meaningful correction. so far i like the bid, caught a bid on the tech stocks but i'll reserve judgment after we hold out a few more days here. >> rick santelli, if janet yellen said it would be two years, what's the problem out there? >> you know, once again, it just blows my mind that when it comes to the federal reserve in this day and age we live in, it's like fed groupies. everybody is a fed groupie. it's like they are all chasingsichasings ing the grateful dead. fed two years, 5 years, 50 years, right? look at market's opinion on this, and i've been look at yield curves on a long time, on the 5 to 10s and 5 to 30s to pick out exactly when she spoke, to see that kind of a flattening is truly unusual.

and right in the middle of the charts. >> guess what, rick? that bond market has been lying to us now for the last five years. >> hey, jack, i don't know you don't look at the chart, i get it. >> steve liesman did a great job. >> when you promise to keep short rates low and flies in your fate and it flattens when you're speaking, if you want to put the frosting on top of the kool-aid on top of the cherry for stocks, god bless you. >> wait a second. how can you say that? >> you can only do so much. >> this is the best of all possible worlds for equities. >> of course it is, that's why the -- why there's still crisis emergency poll. >> i you've got top line revenue growth and bottom line revenue growth and low interest rates. >> zero interest rates, manipulated interest rates. >> it's a manipulated interest rate. >> one at a time. >> and steve liesman did a wonderful segment about how the bond market has been right. >> of course he did. >> over the course of the last 20 years, i'll argue --

>> and the fed has been right 2%. >> it has misled investors and it has kept people out of the market, and that's one of the reasons why the retail public -- >> that's right. stocks go up every day, otherwise uncle sam sends you a check. >> hold on. >> i'm not clear, jack. you said part of the reason why this is a perfect environment for stocks is low interest rates and then you were blaming low interest rates for keeping people out of market or something, so which is it? >> low interest rates right now are the reason why people are staying out of the market. they are seeing that as some kind of a signal that there's going to be a slowdown neck tis, in earnings, in growth. >> so they are listening to the fed. >> if that's the case, then people will probably stay out of market for the next two years which is not what we want to have. we want people edging in, and recently results have shown that there's been a lot more trading activity by the retail investor, so i'm not so sure that the data

it points to staying on the sidelines right now either. >> keith fids jerald. >> let me tell you, the fed is still delusional and the groupies are delusional, staying out of the market, as much as i respect the market, they are staying out of market because they don't have the confidence they need to get too it. >> exactly right. >> and what is going to happen when we start to see inflation work its way up to where we're seeing a negative return on the 5s and 10s and rick, i'll send this over to you because that's really where it's going to come down to. we'll force people into equities. we can argue all we want about what the fed is doing with the short end and how they are manipulating it, but one of the things you've been saying, rick that you're right about is relative value. if people are buying the spanish and greek five-year and they are taking a 5.5% yield on that, imagine where our yields should be, look, 2.5 on the five-year. >> and why the greek and spanish yields there, because of their central bank, so we're right back to they went from nudgers to disrupters, and it's not a good thing.

>> let me go to abigail. >> they are keeping people out of the market. >> i continue to be amazed by you, jack, because if i recall correctly two weeks ago when we were on together i think you said that the bond market doesn't matter so long as the bond market is what causes the free world to go around. >> be a gail. >> and interest rates do reflect reality, they reflect policy and they reflect safety. policy is what has been driving interest rates down low, and it's exactly what has been driving investors into stocks. they are not keeping investors out of stocks. the fed has forced investors so far out on the risk curve because of policy. this year we have stocks up and we have bonds rallying with the fed trying to pull away. that is something that doesn't make sense. it suggests something lurking beneath. >> we haven't even seen the tip of the iceberg. >> i agree. i agree with you. i think we're talking about different icebergs. >> it's going to drive equities higher, a question of how quickly it goes. >> only if it's healthy interest rate growth. all relationships are out of

sync. until the fed steps away and these markets can normalize and act knorr more freely. >> isn't that part of what's happening here, and we've talked about this on the show the last couple of days that we're seeing a move from liquid did i-driven markets to something more fundamental so the correlations are falling and each asset class is moving in its own direction? >> very healthy rotation. >> is that actually a good sign? yeah, it's confusing, but it's a better environment than one where we're all moving back and forth? >> i disagree with that. i don't think correlations are moving, you know, consistently in the right direction. i think if you take a look at a graph of market correlations over the past three months, they are all over the place, so you've got these pockets. >> that's my point because we know it's only in a flight-to-safety kind of environment where all of a sudden correlations are very high, that's what i'm saying, you know, you've got gold going one way and equities going another way and the australian dollar going a third way, generally you would think that's because everything is behaving on some sort of fundamentals

instead of on a giant liquidity move, no? >> that's right. i can't help but posit this question. how would this discussion go if the fed were not owe pink continuously? if we just had to formulate our own outlook on the economy, i think the nature of this debate would have gone in a very different direction. rick, with talking about where the 2s and 10s are in relationship to what the fed is saying versus what the fed just eliminating the fed's narrative, i think we might have a very different tone of a conversation here, and i daresay that we might all be pretty optimistic about equities and not necessarily fixed income right now. >> all right. well, i daresay we'll find out in the months ahead. thanks for now, guys. >> always fun, like "hollywood squares" sometimes, appreciate it. >> good to see you. >> getting new details on a possible general motors victims fund. cnbc speaking exclusively with kind feinberg. scott cohn has details on that.

>> let's be clear. not sure if there's a fund, but there will be a process and for that gm has tapped ken feinberg, really the dean of these kinds of things going back to agent orange. interviewing him primarily about the one fund in boston which has been an enormous success, and you'll hear more about that during the coverage of the boston marathon on monday. we also had to ask him about this gm issue, the next big assignment and here's what he told us. >> i'm assuming, and it's early, i'm just assuming that based on initial conversations with the company that they are asking for me to help develop some sort of program that might be used to compensate eligible claimants. now who is eligible, whether there will be a fund, how much money, what is the definition of how you're going to calculate the damages or what proof will be required. all that remains to be seen. >> anyone who can sort that out

it is ken bine fearing who has a lot of experience with this type of thing. he said it will be several weeks before he has a sense of what the structure will be. >> bill? >> like the modern day king solomon. how many funds has he overseen to determine who is eligible, what's fair, how much and so forth, right? >> yeah. thanks, scott. see you later. >> heading towards the close. here we go. into the last hour of trading for this wednesday. the dow is up 140 points. just off the high. i think we were up about 147 a little while ago and this rally starting to pick up pace. >> and on tap, google, ibm and american express, some of the biggest names in america and getting ready to post their quarterly results about an hour from now. they will definitely reverberate through wall street and we'll tell you which numbers to watch out for. >> also, ahead, cue the numbers, going back to 1999 "when doves fly." fed chair janet yellen leaves no question where she saw after her

comments at the luncheon seen here on cnbc. two top economists weigh in on what she said coming up. >> and also, up next -- >> mom, some idiot just parked this ugly rv outside our house. oh, my god, it's your husband. i. >> there's an elegant touch. >> okay. revving up for the summer, that have winnebago. plans to gas up the company profits and stock. they are down fractionally. stay with us. right back after a short break. . ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need.

start building your confident retirement today. [ female announcer ] f provokes lust. ♪ it elicits pride... incites envy... ♪ ...and unleashes wrath. ♪ temptation comes in many heart-pounding forms. but only one letter.

"f". the performance marque from lexus.

welcome back. so far market has been in one direct, up, and we haven't had a lot of same volatility we've had the last few trading sessions. >> don't jinx it. >> i know. let's see what happens here. far be it for me to want to jinx something like that. this could be our third up day but the dow, all the major averages near the highs of the session with that gain of 134 points. >> yeah, we have been seeing wild swings in the final hour of trade lately. bertha coombs joins us with more on what's moving markets >> soda stream moving higher on a report by an israeli financial daily that it was in talks to

sell 16%. pepsico, dr. pepper, snapple and starbucks noted as possible investors, all decline iing to comment. and lockheed martin came in high after the approval of the f-13 fighter jet. it will make its debut in july and health care providers saw its rating cut from neutral to buy over at citi citing limited opportunities for growth this year. read more about the downgrade and about its earnings report due tomorrow before the bell on cnbc.com. kell? >> bertha, thanks very much. now, we were talking a little bit about manufacturing this morning. big-ticket items often seen as belle weathers to the economy and they don't come much bigger than recreational vehicles. saw a 12% increase shipped to

dealers in 2013 and the industry is on pace to exceed that this year. >> the leading rv brand name is win pago who saw a 20% increase in its recently released second quarter results and here to talk about the big moves on the road, we welcome winnebago ceo randy potts. thanks for joining us. >> thank you you for having me. >> i have to be honest. after -- with all that gasoline has done the last few years going sky high, had the financial debacle starting in 2008. i had to believe that this would be an environment where winnebago would just go under. how in the world not only do you stay in business but you continue to grow the business? is it a demographic play, that the older people get the more they like to the road and rvs? >> well, to begin with you called it right on the recession. it was a train wreck for the industry. we went from pre-recession high industry unit volume to industry

record-setting low unit volume in the depths of the recession, and we're really just in the recovery phase right now. >> yeah. >> go ahead, randy, i'm sorry. >> well, there's a lot of reasons to think that the recovery is going to continue, and it's been a very healthy recovery. there's a lot of very positive things to drive the rv industry in the future. post-recession, energy has been very available which is important, and relatively stable in price. interest rates are very effective. the housing mark, which we think the motorized segment of the industry aligns with as well is healing, demographics plays in our favor, so we think we're on the beginning of a good healthy recovery. >> two things, randy. the first is. started to see in some segments. stock market and why is it that prices aren't falling, one is a

poster child for deflation, i think you saw the average selling prices of 10% year after year. >> first the national gas, natural gas may become practical for recreational vehicles in the future. right now though, natural gas requires a lot of storage space on the vehicle so you almost need kind of a pony express kind of route, and that works well on trucks because they have a very defined route and stop when they need to and the rv lifestyle is all about wandering this country, it's a free spirit kind of thing. they don't want to be tied down to that natural gas infrastructure but that could change in the future. >> what about pricing. >> a great point. >> our brand specifically is a premium brand, it's an iconic brand, known as being a very high quality and very well supported brand, so we always command a higher price in the market police and we're proud of

that. >> you haven't seen that since the financial crisis. >> our margins have grown quarter after quarter over the last year. >> naturally during the recession it was -- again, it was very hard, but we survived that. we're one of some companies that didn't survive, and, you know, we're coming back with a vengeance and we're hitting it very hard and very successful with it. i just came from our dealer show here in las vegas, and we had about 300 people and hosted the show, showed them lots of great new products and it couldn't have been more exciting. >> and it sounds like it's the mix of the new vehicles. the reason why that average sales price was down 10% year on year and that's something that we've seen across all segments of the auto space. >> randy, thanks very much. >> you're welcome. >> are you going to buy an rv,

bill. >> a winnebago for retirement. >> for me roughing it is black and white television, not my style. >> you can have one on the winnebago. >> 40 minutes to go in the close. dow still triple digits. nasdaq rebounding nicely, and the same for the sub- >> weibo, the windows of china, sort of, has the climate turned cold for offerings like weibo and other social media companies. wait why some companies have missed the boat. >> how would you like to buy a home for $1,000. detroit has built an ebay-like website to make that possible, safe or smart to pump your money into a bankrupt city. we'll talk about that with the pros when we come back. hen we c. you see the thing is geico, well, could help them save on boat insurance too. hey!

okay...i'm ready to come in now. hello? i'm trying my best. seriously, i'm...i'm serious. request to come ashore. geico. saving people money on more than just car insurance. [ male announcer ] when fixed income experts... ♪ ...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. [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly... to respond so intelligently and so quickly,

they can help protect us from a world of unseen danger. it's the stuff of science fiction... minus the fiction. and it is mercedes-benz... today. see your authorized dealer for exceptional offers through mercedes-benz financial services. that's why i got a new windows 2 in 1. it has exactly what i need for half of what i thought i'd pay. and i don't need to be online for it to work. it runs office, so i can do schedules and budgets and even menu changes. but it's fun, too -- with touch, and tons of great apps for stuff like music, 'cause a good playlist is good for business. i need the boss's signature for this. i'm the boss. ♪ honestly ♪ i wanna see you be brave

welcome back. will weibo's initial public offering wobble and fall down? china getting wet to launch the ipo and a backdrop for ipo and other stocks. seema mody joins us. >> it's expected to price between $17 an $19 at the top end of its range. valued at nearly $4 billion. but before we discuss, here's what you need to know about weibo. pop quiz, investors. what's microblog in chinese? the answer, weibo. similar to twitter and facebook, weibo allows users to communicate with one another,

upload pictures and videos and share with friends. a huge user base, roughly 144 million monthly active users as of march, and 70% of its users access weibo using its smartphone and just like other media firms weibo makes most of its money through advertising. recently reported weibo is profitable raking in 3 million in operating profit in the last quarter of 2013 thanks to a 163% jump in ad revenue, but the timing of weibo's ipo could be a factor as a market has recently cooled on social media stocks. the global x social media stock down 14% this year, while one firm, ipo boutique voiced concerns about its quality. >> one of the most underpriced ipos in years, social mobile china all in once. >> weibo is expected to trade on the nasdaq under the ticker symbol wb.

>> as not, they will be coming to market during a time when social media stocks aren't loved by wall street. twitter down 23% and during that same period facebook down about 11%. kelly and bell. >> stay with us, how might stocks affect we bee's i'm yoebio? >> with us, max wolf, chief economist and strategist and leana rou wie. what do you think about weibo and the valuation that theoretically will be placed on this company? >> always a pleasure to join you. always a bit skeptical because clients like that from us. that being said weibo is getting -- is the baby in the bath water of late. i agree with cmi, seen a lot of

weakness in tech and social and if you're going to be honest, we've seen an exodus from emerging markets and risk assets and maybe particularly china. do i think this company is at an early period of modernization and you can see, that being said, china has 500 million people, it still only has 40% of it population online. the people coming on line are young and affluent, going to buy things online. going to be a great marketing and coming to market at less than 1/6 the value of twitter makes it look pretty interesting. >> that's what i was just going to ask about the valuation, you can make that point about any population with regard to being young and seeing some big potential growth. a sixth of the valuation of twitter, if weibo is at 17 bucks, where does that put the company in terms of valuation? does it make sense here? >> yeah, i think you also have to consider some of the other

factors here. weibo has some censorship issues that they have to deal with. that's a big issue in china, and they could lose users. face a lot of competition from we chat. losing users to ten cents comparable offerings, so these are all sort of factors that maybe twitter didn't have that makes that valuation, that is maybe half of what twitter is. it makes sense. >> you know, seema, all the same, a friend of mine was joking that anything with ali baba and its name did well after earnings and everybody else is weak and why even after that strong performance by ali baba didn't make the landscape better for weibo's pricing? what does that tell you about the priceing? >> prices between $17 and $19 at the top end of its range, valued at their 3.9 billion, kelly, but i think weibo's ipo could potentially set the stage for what happens with ali baba when it does actually go public later

this year so we'll have to watch. >> there's talk backs so maybe ali baba ends up buying weibo when they come public. consolidates its holdings in this company. does that make sense to you? >> i think it would be a little bit dangerous to speculate on that clearly. there are a small number of firms that dominate the chinese market of which seema and weibo, ali baba and baidu, and i think it's worthy of noting that ali baba already owns a piece of weibo here and that's likely to end with the public offering. >> i would add one other thing that's important, that in the united states and globally, twitter and facebook compete with each other for ad revenue. i don't really think that weibo has to compete with facebook even though they are active in 70 countries. mostly an overseas chinese population. >> also important to note, you know, weibo's ad revenue has gone up by 160% so they are doing well in that area. >> it's weibo or moreve morphedh

the section. >> you've got to wonder if they will look to expand overseas in other markets. it is primarily geared to a chinese audience, but over time you have to see what weibo does oint national opportunity. >> we should keep in mind, too, that there's an enormous overseas chinese community throughout southeast asia and north america and europe so as big as it is in china, china is pretty big outside of china, too. >> i was just going to ask that question so you answer that, thank you, and i'm told here officially at cnbc we're calling it weibo. see how this thing prices tonight. thanks, seema. see you later. >> heading towards the close. 30 minutes left, dow holding steady with a gain of 130 points and the nasdaq, the most volatile of the major averages, another pretty good gain, up 42

today. >> helping the rally, the chief janet yellen singing a tune earlier today that the market loves to hear. two top economists on how long you can expect interest rates to stay near the rock bottom levels even as the economy shows signs of improvements. >> and big hitters on the earnings front after the bell. google, ibm, american express among others posting results. we'll give you the make or break numbers to watch out for coming up so stick around for that. k a. 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 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. so you have time to focus on the things you love. ink from chase. so you can. anbe a name and not a number?tor

scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

welcome back. rally day on wall street without the kind of volatility we've seen lately like yesterday was really the height of that volatility where we had trourngsd up and down, up and down all day. today the rally began in the morning. it has stayed that way. up 129 on the dow. was up 147 point at peak. the nasdaq near the peak of the day. a gain of 41 points. >> dow component american express reporting in just over half an hour's time so a lot to watch. this is what it sounds like when doves fly. fed chair janet yellen taking questions at a luncheon and her answers made it clear that the fed will continue to support the economy. >> reaction now from and with

steve liesman. also with us brian lovett, senior economist at oppenheimer funds and jared bernstein, senior feller with budget and policy priorities and let me start with you on the hits, runs and errors, steve. base chi, what did she say today? we're calling this a dovish speech. was there anything new to hear from her? >> i think so. when she said it's going to be two years before the federal reserve meets its goals on employment and inflation, that sounds a lot longer term to the market than the previous six months comment that they had earlier. also made clear in the debate over whether or not there's plenty of slack in the economy. she thinks there's a lot of it, and she's more worried about low inflation than she is high inflation. all those spoke to federal reserve chairman who is not going to be very quick on the trigger punching the button to raise rates any time soon. >> if you look at market reaction and rick was talking about this earlier, it's the case. you saw a backup in the short end, a little bit of a flattening and the

interpretation that was so interesting because everybody watching and interesting said this is dovish. markets suggesting it was fully priced in or they found something else more hawkish to hand their hat on, on the bond space at least. brian? >> i believe what you have is a low interest rate environment on the short part of the curve for a long period of time. as you move further out in the curve, they are pricing in not a significant pickup in nominal economic activity and not a significant pickup in inflation, and, you know, nominal gdp and ten-year treasury rates will track each other over a long period of time and real economic activity tends to modestly improve. i think fed chair yellen is right that we don't have expansive or overwhelming concerns about inflation, so if you're in this modest growth, modest inflation environment, ten-year rates are likely to stay in this low range bound environment for a long period of time, as well as the short part of the curve will remain in that environment. >> i think about this once in a

while and thought about it today when she was delivering her speech. to some extent how does a janet yellen or alan greenspan or ben bernanke have to be a cheerleader for the economy rather than seeing how things are? you have to remain construckive. if they start talking doom and gloom and they are wringing their hands over that, it can become a self-fulfilling prophecy. do they talk up the economy to some degree? >> to some degree. chairman yellen in particular coming off the problem that ben bernanke had last summer when he engaged in a tiny bit of taper talk and engernderred a taper tantrum. i think coming off that, chairman yellen is actually careful not to be too glowing. i think the somewhat downtrodden report you just heard from michael which i think is perhaps a touch pessimistic and more right than wrong. if she gets too far out in front of that. one of her main messages today is this is a data driven fed and

this is the glide path i see and numerous times she said if things don't work out that way we'll have to intervene differently, and you really have to be careful and mindful of that kind of forward guidance. >> hold that thought for one second. >> can we put up an intraday chart of the five-year treasury note. a look at what exactly happened before, during -- >> we know what happened with the ten-year. >> five-year a little more sensitive to changes and interest rates over the near term. >> guess where she started her speech? >> you can signed of see what happened here, and the yield moved higher, so that's what i was trying to ask, you know, if we're all focusing and rightly so on the sort dovish tenor of what she said, why did this market interpret it differently? >> i don't know. i can't get too excited about a point and a half on the five-year. >> what she's saying -- >> and the yield on the ten-year went down big time. >> i know what i heard about fed policy and that's pretty much what i think.

it sounded pretty dovish to me on several critical questions where she came out. >> michael's point is correct, that on growth, on growth she was actually pretty cautious, and i think that's what the market is responding to there. >> absolutely. that was our view here. if -- if the ten-year is going to move lower in this type of environment, the market is not forecasting a meaningful pickup in inflation and a very modest and gradually improving real economic activity. >> also, by the way, some adjustments to be made. kelly, as you know, a lot of back and forth on the 5s, 10s, 30s, they are in a phase of adjustment. >> can i make a point. >> can i tell you something else. >> she's a little bit worried about not deflation but disinflation, slower growing prices. the market, the economy is tightening up a bit, and inflation is decelerating the core cpe. i heard some real concern in her voice today and that may have

been reflected in overdiscussing as well. >> larry kudlow pointed out it's rather odd to hear a fed chair hoping for higher inflation down the road, right? >> a lot of things odd about the last five years. thank you, guys. >> see you later. >> 20 minutes to go into the close. looking at a pretty strong session across the board even as we were discussing the correlation being down, bill. the last couple of days things have all been moving in lock step pretty much, and that's as we're waiting for earnings after the bell. >> including google and ibm out at the top of the hour. we'll tell you what the numbers are and what the streets are looking for next, and these results could set the tone for trading tomorrow. >> full team coverage of those earnings when they hit the tape. talk of what that might mean. >> meanwhile, billionaire, we don't call him mayor, and billionaire michael bloomberg never to be shy in retiring telling the "new york times," quote, i have earned my place in

heaven. it's not even close. it means everything, he says, and some say if you tallip up all the good work he's done he'll likely get into heaven. kell and the pros will be batting that one around. pay-per-view coming up. >> you don't want to stick around? around? . 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. ♪

but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack. that's health in numbers. unitedhealthcare. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities

and see them through, we say: let's get to work. because the future belongs to those who challenge the present. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business.

welcome back, the nfl concussion settlement with players hitting a snag here. scott wapner joins us with the story now. >> a snag for the second time because a federal judge in philadelphia has once again denied preliminary approval of that proposed $765 million settlement of the nfl concussion claims, and according to sources that we've spoken with experts in this field, it does increase perhaps the likelihood that this does eventually go to trial. that could be a long way off, but i think it's fair to say that's probably the last thing that the national football league wants as some felt at the time that this settlement was reached that $765 billion or $765 million was too light and that the nfl was getting off a bit easy. it is an issue that has certainly circulated around the news for some time, has been a hangover, if you will, for the national football league for some time, so this is yet the latest development.

a judge in philadelphia with a $765 million settlement. guys? >> don't want to put you on the spot. has anybody put a number on what would be more equitable. >> i've heard from stories out there, a number closer to $2 billion, maybe a number that had been tossed around, that that $765 million was a little bit light, according to analysts and experts who have studied this case. >> wow. how long till ken feinberg gets involved? >> can ken feinberg be far behind hon this one? >> thanks, scott. >> a busy week for earnings, goal-in and ibm posting results after the close. josh, kick things off for us. what numbers are key for google? >> the google, report could be messy for investors. for one, remember, google is selling motorola's smartphone business to lenovo which is now

moved into the discontinued operations column. that should positively impact earnings because, remember, motorola's losses have been a drag on google's results. the company split its stocks and doubled its shares which could add confusion to q1 numbers. bottom line, analysts expect eps of 1641. google's class "a" shares up. >> we'll be back with you when the numbers come out. morgan, what is expected from big blue? >> ibm's missed on revenues the past nine out of ten quarters so expectations aren't high. analyst calling for eps of $2.41, a 15% decline year over year on revenues of 2.91 billion, a 2% drop. keep an eye on hardware, a trouble spot and strong bookings ended 2013 but q1 is typically

slow and the one-off sale of an outsourcing business to synex which should negatively weigh on revenues as well. lastly, exposure and emerging markets, so slowing demand dragged on the company of the last year keeping a close watch to see how name packets ibm this quarter. back to you, bill. >> see when those numbers come out as well. thank you, morgan brennan. ten minutes left in the trading session. the industrial average up 143 points. the nasdaq has more than a 1% gain now with a gain of 47. >> and after the bell, what's the future of bitcoin? does it even have a future? we're going to have a special report coming up. stay us. drivers, to your marks. go! it's chaos out there. but the m-class sees in your blind spot... pulls you back into your lane...

even brakes all by itself. it's almost like it couldn't crash... even if it tried. the 2014 m-class. see your authorized dealer for exceptional offers through mercedes-benz financial services. [ 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. make a my financial priorities appointment today. because when people talk, great things happen. make a my financial priorities appointment today. who would have thought masterthree 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*?

heading towards the close, and we're back to the highs of the session. i think the dow is up 147 point with eight minute left and maas damage up 50 point. >> 1.25%, we've bounced quite substantially and quickly off the lows from yesterday. >> joining us is chad morganlander. art cashin says maybe the

selloff is done. >> you've heard an extremely dovish message from janet yellen. you're getting into the start of earnings season. even the expectations in the bar are low so perhaps we can jump over that bar. what else do you have, geopolitical uncertainty, really in the thick of it with russia. that can move apart and move away. bond markets will start to sell off and the market can be up 3% to 5%. >> are you bullish here on stocks? >> i am bullish for 2014, we are. we think earnings for the s&p 500 will be up at 5% or 6%. returns will be up to 7%, 8% on a total return basis and we're bearish on bonds. we think the economy is going to grow around 3%. and do that without being bearish on bonds. >> one of the conundrums have been the banking sector. >> the special situation, jpmorgan, there's securities trading, didn't do as well.

bank of america, look at the legal fees they are paying out, $6 billion in the latest quarter here, much higher than anticipated, and it's not doing so well right now. >> that has led the market in 2013, but you don't need the financials to lead the markets and to run for the markets to go higher, and i believe that the financials are going to be an outperformer in 2014. it will take some time, as the yield curve starts to steepen you'll see money flow back into banks. >> google, ibm, american express, who is to watch? >> ibm for capital spending on the technology side, big blue is very disappointing. we think the valuation makes sense, because of the tech names, high-flying tech stocks, want to keep an eye on that and more importantly what we want to do is look at the old world technology names and overweight the portfolio in those names and selling it at 10, 12, 13 times

multiples. stay away from the high flyers and move more into the valley names. >> got it. >> good to see you, chad. >> good to see you both. >> we'll take a break and come back with the closing countdown for this wednesday. and then after the bell, she's taking off for a few days here. >> after the bell, google, ibm and american express will reveal the latest financial results and explain what those numbers mean. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. why let erectile dysfunction get in your way? talk to youroctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain. it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away

if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. if your doctor decides viagra is right for you, you can fill your prescription at your pharmacy. or, check out viagra home delivery, a convenient place to fill your prescription online and have it shipped at no additional cost straight to your door. viagra home delivery. get started at viagra.com. viagra home delivery. at your ford dealer think? they think about tires. and what they've been through lately. polar vortexes, road construction, and gaping potholes. so with all that behind you, you might want to make sure you're safe and in control. ford technicians are ready to find the right tires for your vehicle. get up to $120 in mail-in rebates on four select tires when you use the ford service credit card at the big tire event. see what the ford experts think about your tires. at your ford dealer. all stations come over to mithis is for real this time. step seven point two one two.

verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

coming up on the last two minute of trading here, this is the dow this week. monday, tuesday, wednesday, and it's during here that art cashin was looking at maybe this little bounce we had yesterday could be a signal maybe that the momentum saw, the momentum stocks that we've seen for weeks now could possibly be over. remains to be seen, but when art cashin speaks you listen to him here, and we are gaining steam here to the upside as we go towards the close, up 152 points. and the nasdaq still up 50 points at the moment. now we watch for earnings, three big ones to watch that could have an impact on tomorrow's trade which will be the last day of the trading day. google looking for earnings of

2.61 and american express looking for earnings of 1.30. i think i'm reading that without my glasses, bob. >> unfortunately, still not having an impact, earnings overall. yellen today about as dovish as you can get. >> bank of america's earnings. horrible, and the regional banks have been good. bottom line, labor markets lag and continue for two years. holding her hands and saying we're going to keep it low for two years. >> are you right, doesn't get any clearer than that. good news. bottom lines are pushing out the rate hike and yet we're looking for better news on the economy. capacity utilization, industrial production good and housing starts work so great overall. a little bit of a slowdown in the housing development. >> kind of good news but also not so good news. want it to come out and say you

see the improvement. >> that doesn't matter because the market is going higher. >> look at doug, up 160 points. we are going out on the high of the session. are they expecting better earnings? we'll find out coming up here from those big three companies we mentioned here. stay tuned now for the second hour of the "closing bell" with kelly evans and company. >> and welcome to "closing bell." i'm kelly evans. it's 4:00 on wall street. here's how we're finishing up another pretty strong session. with the dow up 100% or 160% today, the nasdaq adding 1.2% as it bounced off yesterday's lows and the s&p 500, proud market gauge up about 19 or 1%. let's get right to it now with today's panel to digest all of the news and what's moving the markets. cnbc contributor michael yosikami is here and our own michelle caruso-cabrera and dominic chu, great to see all you guys.

michael, yesterday at about 3:00, looked like a very different narrative. in the span of about one trading session we've whipped around and now people are starting to feel more confident. you buy here and put in the lows? >> i think janet yellen was a stimulus for the market, again, clearly indicating that she is going to continue to provide support for the market. the ukraine situation isn't getting any better, but i think the earnings numbers so far have been okay. we'll have to see what happens after the bell. >> dom, you know what's interesting, wasn't as if the guys reported yesterday, even in the case that they be really driving this market forward, and yet we did okay generally. >> we did okay generally. the bias that you have for the overall market is to the upside so -- to put it in electricity terms, the market is going to go where the path of least resistance is. for a long time you can argue since '09 it's been to the upside. what you had over the course of the past few days is a real test by some traders, maybe hedge fund, money managers about where

bottoms and tops in the markets were. trying to figure out where support was, and once they found, it okay, there's a little bit there. let's buy it again to the upside. that's what a lot of traders have been telling me. if you do find a support level, you bounce it right back up. >> the mystery not solved yet kelly? >> yes. >> do we believe the bond market. what is the yield curve telling us, and under janet yellen today it flattened very decisively at a precise moment. rick santelli has done a great moment of charting the compression and the spreads there. why is the bond market -- what are they nervous about? you should have a steep yield curve if you believe growth is coming, and it's not getting steeper, it's flattening. >> that's the weird thing. if you tyke the five-year and say the five-year proved upped and you had the strong capacity utilization. >> there's always an excuse. >> the big broader story was that ten-year interest rate was falling. >> and the 30, the 35 was absolutely flattening throughout

the course of the day. >> before you invert you have to flatten. >> we hope that that's not around the next corner. >> just asking. what is the bond market telling us? >> that's what makes the fundamentals here so important. google is moving the company out with its earnings report. let's talk through the numbers. josh lipton joins us. >> google just reporting, the street was looking here for 6.41 on revenue of 15.54 billion. google reports 6.27 on 15.42 billion so a miss there on the bottom and the top. just digging through the numbers, paid clicks were up 6%. that actually is a bit shy of what the street was looking for. cpc's cost per clicker, the average amoudvertisers want to when they click on ads. google here missing on the bottom and the to. kelly, back to you. >> thank you, josh. >> want to get reaction from victor anthony, joins us,

managing editor of tone "k" capital markets. you surprised? >> those judgments are in line with my estimates, so those numbers are good as far as i'm concerned. a lot more aggressive numbers out there on street so google missing those aggressive numbers i think will likely take the stocks down. paid clicks. it's a solid top line number for google. >> okay. just thinking through this here for a second. shares are moving lower by about 5%. you're saying that what happened was that the rest of the street was just too high, too optimistic here and that you still see good signs? >> yes. came in with my estimate, 6.27 and 26% cpc growth but there were a lot more aggressive numbers as far as costs per click growth as well as paid clicks growth as well. >> so you're not worried about the fact that the average cost per click was down 9% year on year. >> it was down 11% in the fourth quarter so trends are moving in the right direction. >> but it's still falling. >> it's still falling.

>> less bad. >> exactly. >> the mix of queries, close to 40% of queries on google, on mobile where the cpc is lower and the gap is closing over time. >> this is exactly the problem with the tech stocks and the high flier beta stocks have such incredible expectations that you've described. sounds like you were a bit more conservative, correctly so is there was google supposed to be one of the high flyers? >> it has been. >> still trades at like 30 times trailing numbers. >> tom, that's nothing. >> i know that's nothing. >> good point. >> my question is what are the mobile growth numbers because isn't that where the future basically is for google and i still haven't heard what those numbers are or what they will be and if those aren't growing that's probably problematic to the company. >> hello. >> you want to react first to what you're seeing from google, down 5%. >> looks like an interesting place to get in. i agree with the other guests. you're getting 14%, 15% online ad growth and a company that will see operating margin

improvement on the sale of the motorola business to lenovo. the stock to me is the best value play in technology. >> wait, are they still at 30 times earnings? >> hold on. 30 times current and 15 times 2015 estimated. when you're growing a top line of 20%, this is as good as you're getting across the tech space. >> tim, this goes back to the point that i was making which is if they are not one of the high flyers and are still taking it on the chin on numbers that victor tells me shows signs of improvement, then there's something wrong here. >> the way i see it is the rest of the world growth for them, rest of the world is 46% of the business, a place where they are going to surprise on the upside but if you're looking at valuation, and what's the last two weeks been about, rotation out of growth and into value. within the tech space this is as much value as you'll find and scale matters. for all the mobile moves that facebook and twitter try to make, this is a place i'm much more comfortable. >> what about the core issue the analyst was talking about.

migrating more and more to mobile, that's important and you get paid less. they are going some place where they get paid less. sounds like a bad recipe for stock. >> look around the rest of the world, looking at how they are monetizing mobile and emerging for example, it's for search and where the paid clicks are a lot higher. everyone knows that the cpc is something that's been a trend and bothering this company for three years, didn't matter three weeks or months ago when this thing is pushed to all-time highs. i don't think that that's what you should be focused on, top line growth and scales of mobile. >> by the way, are you wearing google glass? >> i am. >> got a lot more discussion. >> that's not a good look. >> next block, a couple of other big names. in fact, we've got the numbers on american express, mary thompson joins us with those. >> american express beating on the bottom line and mission on the top line, earnings of $1.33

a sharing, three cents ahead of expectations and revenues a little light though, coming in at 8.26 million, and that was slightly below analyst estimates of 8.3 million. a couple of highlights. the company's ceo saying card member spending was up 6% globally and that's 7%, an increase of 7% on a currency adjusted basis, a little bit lighter than the company's long-term goals on that level. consolidated provisions for losses were up 17% from last year. consolidated expenses were down 1%. the effective tax rate was up slightly from 35% to 33% and the company's r.o.e. was 28.3%, up from 23.2% a year ooflgt i'm going to be listening to the conference call at 5:00, and we'll have the details from that coming up on "fast money." again, a beat on the bottom and a miss on the top for american express. back to you, kelly. >> mary, thank you for now. the shares moving lower by 1% after hours. american express, a different way of looking at the financial

space or maybe the consumer maybe enterprise and important different point of light to point out. any different reaction. 2 for 2 with companies moving to the downside and starting to look a little like yesterday. if you take a look at the way the economy, is seems like this is a sweet spot for a company like american express. have premium customers paying their bills on time. this seems to be like the gold locks economy and like it as a long-term play. >> i think consumption is really going to be a big story for the next six to 12 months. i do think that retail sales and particularly high end retail sales will be very, very positive. whether or not they should be, the money is free, the federal reserve is giving it to us, so people are spending their money. >> u.s. consumer is in already shape. so how else do you play that becomes the question? >> they are less exposed to the yield curve. banks love a really steep yield curve. that isn't necessarily what we're talking about with american express but to the degree you're worried that interest rates are telling us you'll have a weaker economy you have to wonder about. >> you know what's interesting

about this, too, each individual company that's reporting, early in the season, right, guys, but each company has moved fundamentally with how the earnings report came out. stocks go up or go down based upon the quarterly results. if n that environment you don't get the sense that stocks are in an environment wholesale going up or down together. makes you feel bet their google is going down on their earnings report and other stocks are going up. >> a great time to pick stocks. >> i completely agree. the fact that google is going down means there's some sort of rational thinking. what always makes me nervous is in 1999, remember when growth and value suddenly became very blurred and the value guys basically said, hey, it's value stock because it's growing faster even though the pe is at 50. i get very, very nervous in that kind of environment. eventually fundamentals matter. >> i think this is a great -- >> go ahead, tim. >> i was going to say i think this is a fantastic environment to be picking stocks. single name stock volatility

that's much higher and the market overall where i think volatility is very low. actually i see a lot of guys in the market buying upside have and i would argue that the rotation is a very healthy thing, but for stock pickers, and that's what a lot of people out there claim to be good at. this is a great time to be in there where correlations aren't that high. i think the american express numbers tell you it was a bad quarter for weather. they were focused more on the expense line and what people are expecting all of the card, you know, players in this space have underperformed, even the banks and overall stock market this year. this should not be a surprise. >> it would be one thing if we had a bunch of red and green arrows. >> so far 3 for 3. >> maybe it's the nature of it, all the major components. guys, we've been waiting for weeks and weeks, everyone saying waiting for the earnings season and the fundamentals and, you know, kind of a -- a meh to borrow the term. >> the only thing i would say for google and dislocation of the tech space over the past

several weeks, nothing has fundamentally changed for these internet stocks over the past three months so what you have in google is the best of class stock taking share from and advertising dollars away from traditional media names and they will continue to do so forth next several years. that is stock you would want to own. i would take advantage of the pullback. it's a cheap relative stock relative to other internet stocks like facebook and twitter, a stock you want to own. can you sleep at night owning google. >> even tonight. >> absolutely. >> estimates have gotten ahead of themselves on the street. they did meet my number. very, very few companies within tech are growing revenues plus 20% year over year and google is doing that and taking share. that's why i like this name. >> do you worry about the fact that they bought the drop company, the this company, that company? is it throwing spaghetti against the wall, or have they a vision with what they are doing about all the acquisitions? >> google is invested in just

about everything. go. >> that's my question. is that a good thing? >> they want to be where everybody else. >> i thought everyone else wanted to be where they are. >> everyone wants to be where facebook is, right? that's why they are doing oculus. >> google and facebook are doing the same thing, two companies competing head to head for the user base, and i think they are approaching this investment phase in the right way. you have to spend to get the users. if they don't do it, someone else will. >> google just like facebook, aren't they basically operating like a private equity venture capital company and the consider business and taking their profits and they real rethrowing it against the wall. >> what percentage of revenues -- >> explain to me how oculus really in the short term is going to be any sort of benefit besides a huge throw for mark zuckerberg. >> i agree with oculus. what's app, i see the value there longer term so i agree with you on that. >> we'll know oculus is up to something when we see you 3-d

goggles. for now ibm results are out. morgan brennan joins us with the numbers. shares are moving lower. >> down about 2% in after hours. there's good news and bad news. start with the good news. nongap earnings per share, 2.40, in line with street expectations and it represents a 15% year over year decrease. the not so good news, bad news, revenues a miss, coming in at about 22.5 billion. that was shy of estimates of 22.91 billion. so seeing a decrease there as well year over year. that represents ten out of 11 quarters where we've seen misses on revenue. kelly, back to you. >> coming up next, much more on google's results and whether you should be jumping into this stock which has gotten pretty hard as of late. when it comes to getting hard, no place knows how it feels more than the city of groit. motown continuing to fight back and auking off abandoned homes

as little as $1,000. find out if that could be a dream deal for real estate investors or not and former new york city mayor michael bloomberg says he's earned his place in heaven because of his fight against guns, smoking and obesity. more of what he had to say coming up later on "closing bell." you're watching cnbc, first in business worldwide. ss worldwide. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack.

that's health in numbers. unitedhealthcare. ♪ ...work with equity experts... who work with regional experts... that's when expertise happens. mfs. because there is no expertise without collaboration. on brand name mattress sets. get three years interest-free financing plus, get free delivery, and sleep train's 100-day low price guarantee. sleep train's interest free for 3 event is on now.

♪ your ticket to a better night's sleep ♪

welcome back. joining the group is ross gerber, the ceo of gerber caw salky. he spent some advertising dollars on doingle but not enough lately. >> well, i'm singlehandedly responsible for helping them, huh in. >> what i mean is their shares are moving lower. questions about the extent to which we're going to monetize as people move their ad budgets to mobile from traditional desk top. what do you think about the results and the shares being off 5%. would you buy them? >> first of all, let's talk about how they are moving from traditional desk top to mobile. desk top ads have a higher premium than mobile ads and they have changed their ad platform so that you almost have to advertise on mobile now unless you adjust it, and with those changes, you're going to see

some lower numbers in some places, but it's smart longer term, but the real issue with google is all these stupid things they are doing with their money, like drone-makers and nests. that now doesn't work and wind farms, like google needs to focus on what they are really good at which is advertising and nobody can touch them, facebook, twitter. nobody can touch them when it comes to ads, so the day-to-day movements of google i'm not really worried about but longer term they are need to focus their business. >> is it fair to say that when google is up 10% on earnings and really putting up great core numbers they can afford to do the other kind of acquisitions, the longer term shots and that perhaps this now puts a little more pressure on the initiatives to really make sure that the core is performing well. >> just to be clear, numbers are good numbers, good solid numbers, but i think like i said, street exactations got ahead of themselves a little

bit. >> however, investments, some of them, you know, like a gentleman said earlier, tossing darts at the wall and see what sticks. i think the internet space is evoflg and changing and growing and people are use the internet more so not just in the u.s. but all across the globe and i think google needs to be where everyone else, and i think the investments, some will work and some won't. they need to make those investment in order to continue to create a bigger share of value. >> the traffic acquisition costs are skyrocketing, i think they will pay apple about $1 billion a year in order to advertise on their mobile devices. isn't that getting bigger and bigger and bigger and won't that be a bigger problem for google? >> it's actually stable for google, so i don't have an issue with that, and with reference to the mobile shift, users are moving over to mobile and google has some up with a solution and advertisers are using it, yes, they are pricing it as a discount to desk top and the

price is collapsing, and you've seen it almost every single quarter. >> we've seen that with yahoo! and google now. why do it that way? what's the logic? >> you've got to strip those costs out because it's really net revenue to your company, and it's just like any business. there's a certain cost to getting that revenue and what really counts as the revenue is your business. >> isn't it a cost of doing business. >> yeah, exactly. >> but really what matters is how much money comes into google and let's not forget, this is a mobile world. i ran some facebook ads the other day and you know what percentage was from mobile. it's crazy how mobile has taken over the world and google, facebook, twitter, all these ad companies have to focus on that, but just to be said nothing wrong with google's ad business. the problem with google is google glass and all the ridiculous geek fantasies they have. >> i was thinking about that, because at the same time we always criticized companies when

they don't cannibalize themselves and don't consistently try to reinvent themselves. i mean, i'm so excited that google is thinking about the driverless car. i don't know if it's good for shareholders but i know it's fantastic and who the hell else would be doing that right now, nobody, right? google glass, maybe it turns out to be nothing, but at least they are thinking about something and not protecting that invested interest they have. >> that's called innovation, right? >> exactly. >> that's what exactly -- >> look at the operating margins of the company. >> we're not going to driverless cars any time soon. let's be real. >> i bet it's sooner than you think. >> oh, come on. >> love driving my car, have an awesome car. we have to remember that when we let geeks determine what the rest of the world wants to do. they are wrong 100% of the time. >> better than the bureaucrats. >> that's true. >> so you disagree clearly with our other guests that say -- that says they need to be spending this one throwing darts

against the wall in order to innovate. what would your rebuttal be to that statement? >> it's very simple. return on capital. you take money and invest it for your shareholders and get a return and if you're betting on all these different things your return on capital is much lower than if you have a focus and concentrated business model. >> for now. >> forever. >> still, you have to get returns. >> this is not a company that's wasting money. >> let me remind my esteemed guests. >> strip out the ad business and look at every other business of google. it's lose money, and motorola was a $1 billion disat ter. >> if you rethe lenovo transaction, around 33% operating margin which is a very, very good number for a company this large. they continue to find ways to grow their core business outside of this country, too, and that should be very exciting, because they have a first move or advantage in a lot of places where there's zero competition

and these guys are growing. as i said do, not discount 20% top line growth at a 20% multiple. >> i love the ad business. i lost ad business. don't get me wrong, and i think they have 100% margin. >> if i could jump in and remind my esteemed guests that the very geeks were the ones who founded facebook and google. >> they start off with a good idea. >> innovation requirement investment. >> and when you don't have to drive anymore look at ads on your computer. >> or in my eye. i could have ads in my eye, you know. >> in your car. >> don't people see. >> i mean, you have to really ask yourself -- look what intel did. they said we'll put out microstops and all sorts of different products. is that what google is doing? i'm saying is this the best use of capital? >> got to leave it there. >> be sure to stick around and catch tim seymour and the rest of the "fast money" crew coming up at 5:00 p.m. now we've got breaking news on

high frequentry trading firms. kate kelly with the details. kate? >> kelly, thanks so much. eric schneiderman, the new york attorney general, has responsibleaed about half a dozen high frequentry trading firms reports the "wall street journal." the names of the firms that have been speen ad, include jump trading, chopper trading and these are firms that have been under the microscope, of course, for some years now but certainly also since the publication of michael lewis's new book flash boys that takes the high frequency trading firms to task for sort of essentially front running other orders. schneiderman has said for several weeks he's scrutinizing this type of business and said an issue to one of the high frequency trading issues in new york, the notion that they didn't have a down day was extra scrutiny. not clear whether or not they

received a speen avrnlubpoena. >> ones to watch. reverse sticker prices, homes priced for $1,000. $1,000. that's right. they are all in detroit. the motor city is setting up an ebay-like auction site for abandoned homes with bids that start at $1,000. will real estate investors return to this once proud city? we'll talk about that next and mtgox, used to be the worm's largest bitcoin exchange filing for liquidation today. a look at what that means for the future of this controversial currency. currency. today is wednesday 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. without standard leather.

you are feeling exhilarated with front-wheel drive. 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. ♪ this is a wake-up call. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

couple back, the earnings keep rolling in. over to bertha coombs for a quick market flash. >> two more companies on the move after reporting earnings. sandisc reporting earnings better than expected on both the top and bottom lines, revenues in addition to earnings, better. stock currently is trading up about 2%. meantime, capital one posting better than expected first-quarter earnings of 1.21 but the top line number a bit light, trading up half a percent at the moment. >> bucking the trend at least. a couple of names moving higher. thank you. >> detroit homes are up for auction starting at $1,000 apiece. just $1,000 for a home in the city. now, the catch, buyers must bring the houses up to code within six months of purchase or at else risk forfeiture of the property. we're joined by danny back from

the back group and johnny did you have, great to see you both. charlie, first of all, had a do you think about this move, is it going to work? >> it might work for a coup of neighborhoods. you know, there's an old saying if you have a rolled tooth you take it out and the whole mote mouth goes. 12 homes on this website. it might save this neighborhood, but when you are talking in a city with 80,000 abandoned structures i wonder how far it goes. not really a panacea. >> only a dozen homes. >> 15 homes to start. there's 30,000 foreclosed homes in the city of detroit. there's also 50,000 homes that are owned between the planning -- the planning development department and the city of detroit alorne and we know that foreclosed homes on average in detroit sell for about $8,000, and we also know that on average it's $40,000 to $60,000 to rehab the home, but here eat upside. the average median price, once it's rehabbed, sells for about

11,01 11 1,000 so there is margin there for investors. >> so for people who want to give this a shot it makes sense. we're talking about a select group of properties. if this works and detroit were to try to roll it out more widely, could that move the needle for the city? >> what can you say? when you're talking about 50,000 homes, some of them have stray dogs, some with winos in them. some don't have floors in them, so in this town where we really need to focus is public safety. take it from me when you put a hot water in a home that you're rehabbing and you come back the next day, that sucker has been scrapped. >> and i wonder to what extent the property taxes, you could say at least you get back people owning properties that generate much-needed tax revenue, i realize we're talking about a small number. how much, charlie, in your experience is needed? how much more tax revenue is needed and how big are the numbers we're talking?

>> for the city itself? >> well, we're in bankruptcy. we're talking about jettisoning health care. we do have a new saying here in detroit it's a start. that's where we're at. it's a start. no sense dumping on the program. if you can save a house which saves a block, then block by block you start to move somewhere. i don't know where the money comes from because we can't even collect taxes at this point. >> danny, is this a smart investment and move for people if they are not going, given that they have to improve the property and have it up to code. you mentioned that they are potentially going to go for something in the range of $100,000. is that a sure thing? >> i looked at doing this myself six months ago with two business partners and we went there and did our evaluation and decided no way in heck would we touch

this. exactly like charlie was saying, basically you're taking over a home that in many cases has no wiring or plumbing, literally a show and even the shell is fractured. a complete disaster. let's say you spent the first $10,000 and you get a piece fixed up and in a week they have already taken that and stolen it again so they are also having a really hard time getting insurance. i would not touch it and i've not recommended that my clients touch it. they basically have 293 million in back taxes on these properties. i understand they need to get them and sold and rented out and so on but would i not touch this as an investor. >> charlie, you, real quick? >> remember, these are the more exceptional houses and the better neighborhoods so they tend to have wiring in floors. to me the problem, this isn't really a program worth the national program but what it does say is detroit has a long way to go, but at least it's

moving in the right direction. and the city is not stealing the taxes, trying to raise taxes. >> all for good attention. if implemented more widely that could help. >> see what happens there. would like to have you both back and take a look at how it's all doing. >> thank you. >> want to get a look at shares of google. off in the range of 6%. coming next, we'll talk a little bit about bitcoin. warren buffett may not be a believer but we have the story of someone who uses bitcoin from everything from investing to buying groceries, and there's holy hubris. former new york city mayor mike broom lerg saying all his good deeds guarantees him entry into heaven. do good deeds from billionaires punch your ticket into heaven? we'll get into that coming on "closing bell." "closing bell."

cars are driven by people. they're why we innovate. "closing bell." they're who we protect. they're why we make life less complicated. it's about people. we are volvo of sweden. that's why i got a new windows 2 in 1. it has exactly what i need for half of what i thought i'd pay. and i don't need to be online for it to work. it runs office, so i can do schedules and budgets and even menu changes. but it's fun, too -- with touch, and tons of great apps for stuff like music, 'cause a good playlist is good for business. i need the boss's signature for this.

i'm the boss. ♪ honestly ♪ i wanna see you be brave ♪ honestly i can't wait to get to mattress discounters because the tempur-pedic bonus event is ending soon. choose $300 in free gifts, and, get up to 48 months interest-free financing with any tempur-pedic mattress. ♪ mattress discounters

welcome back, a look at two bellwether companies, google trading down 6% after hours. ibm trading lower as well in the range of 4%. there's the chart.

that could weigh higher on the markets tomorrow. >> tens of thousands of retailers around the world. bitcoin and venture capitalists have invested 74 million into bitcoin startups, despite the blowup of ft. goks. cnbc looks at what's driving bey coin. >> critics question its value and its viability. >> this to me feelses interesting. >> with the click of a button they can send money. >> this isn't a revival. it's a gathering of the bitcoin faithful. >> an idea that bitcoin makes

sense. >> you can make money. >> something i stumbled upon on the internet. >> i tripled my money. >> imagine a world without cash. these people aren't just fantasizing about it. they are living it. behind the bitcoin uprising a belief that bitcoin will disrupt the financial systems giving them a cheaper way to send money around the globe, all without the oversight of a central bank. >> i thought it was really interesting to see people take currency back. >> bitcoin believers directing and directing the bitcoin system, not in god or the government. >> the entire documentary is on cnbc.com. we encourage you to go there and watch t.kell, back to you. >> stay with us, if you would, because bitcoin and whether or not you should invest in it or just trade in it has been a huge

topic on wall street. micha michael, should people be trading in this currency, using it? >> i write on it, have a commentary up on cnbc.com where i received scathing reviews from the bitcoin community that i, quote, have no clue how bitcoin works, how awesome the encryption scream is and how mathematically beautiful the process is. >> so i'm imagining you were not very bullish on it. >> people who set up bitcoins are libertarians. >> nothing wrong with that. >> nothing wrong with that. >> the only way the libertarians are necessarily going to adopt bitcoin is if you don't have government intervention. what you're going to see in order for that credibility to come for bitcoin you have to have government intervention. >> bitcoin has been okay with that. >> not the world in general. >> wait a minute.

there is a great part of the bitcoin community, a lot of brewers want regulation. they are actually seeking it, because as you mentioned, they had a critical tension within the bitcoin community, you said they are the libertarians that want nothing to do with any kind of government intervention and the brewers say if we don't have it, no one is going to adopt it or the general public isn't going to adopt it and it's going to die, and so the entrepreneurial forces trying to get at least some government regulation, not a lot. they want the light touch there. >> should bitcoin exist. >> yeah, it should exist, but as warren buffett said it's basically, you know, a dumb idea. when you have someone like warren buffett out there saying that, got to give it wait. mtgox is the tip of the iceberg. a lot more people will lose a lot more money. >> my understand sergeant legacy won't be the coin itself but the frictionless transaction, right? it's the underlying architecture, the solving of the computer problem that is so

brilliant that people talk about, and years from now we won't be talking about bitcoin but we'll be using some kind of platform based on this architecture. >> not only will it be used to transfer money but other things. if you digitize contracts, things like this, the open source ledger will actually be able to verify and validate it. >> fascinating. >> and that, too, that's what they call bitcoin 2.0 so this really is just the start, they say. eventually you can put a lot more information there. as you say, it be sent frictionlessly between two parties. >> all right. much more and many more reasons to watch it. it all happens tonight. mary thompson great work and thank you. >> it's time to rethink investing on the heels of the high frequency trading controversies. a now book says it's time to transform the investment process from the roots up. the author will join us on that next. >> and when he was mayor of new york michael bloomberg moved heaven and earth to make the

city safer but does that get him through the pearly gates? he seems to think so. that story just ahead. ry just a. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade.

all on thinkorswim save you fifteen percent or more on car insurance.d everybody knows that. well, did you know pinocchio was a bad motivational speaker? i look around this room and i see nothing but untapped potential. you have potential. you have...oh boy.

geico. fifteen minutes could save you fifteen percent or more on car insurance. at your ford dealer think? they think about tires. and what they've been through lately. polar vortexes, road construction, and gaping potholes. so with all that behind you, you might want to make sure you're safe and in control. ford technicians are ready to find the right tires for your vehicle. get up to $120 in mail-in rebates on four select tires when you use the ford service credit card at the big tire event. see what the ford experts think about your tires. at your ford dealer. welcome back. as we heard earlier from kate kelly, new york's attorney general has subpoenaed a high dozen trading first as it seeks details about special deals it might have had with exchanges. my next guest says high frequency trading says is a cancer for a form of investing.

author of the new book "the nature of investing." cat rip, great to see you and charles schwab described high frequency trading as a cancer. how do you describe it? >> i think the lewis book gave us a really good narrative of good guy versus bad guy which is always really compelling and when i analyzed high frequency trading i found a more systemic question. what you saw in this environment was a piece of our trading system that grew from less than 10% of the market to over 60% of the market in a really short period of time, just a couple of years. >> right. >> and in a natural system, if you think of like a tree, it's as if the tree had a branch and suddenly the branch turned into godzilla branch just growing all on its own completely detached from the rest of the oraganizenisoraganize ni oraganizeni oraganizenism. the only time you see that is with disease, cancers, viruses. >> or the early days of google. >> i don't think so. that's true. >> not growth is evidence of

that. it's totally specious. >> not growth in and of itself. it's a question of what that growth is attached to and for healthy system you need growth in conjunction with development so the reason google was growing is the whole ecosystem around it was growing, internet bandwidth growing, demand for the services they were providing going, information that supplied the whole system that was growing. with high frequency trading it really was a pretty divorced growth from the rest of the system. if you look at the rest of the market, it really can't grow at all. >> and that makes it bad? >> it makes it unhealthy inherently. >> the fact that it's front running makes it bad. >> a better core argument. >> the front running thing, make all kind of argument about whether it's -- >> it's a better group argument rather than it just grew fast. >> i'm not sure anyone can come to any sort of academic conclusion to figure out whether

it is or is not helping and if you think about it analogous as a cancerous system rather than a healthy sustainable growth one, i can use that analogy. will it contribute to the greater good? >> what you're mission here is the characteristics of the growth, not the growth itself. you can have fast growth that's really healthy but when you have growth not matched by the growth in the trading partners or regulatory system or growth in the other technologies. >> growth in the regulatory system is really, really important. i mean, if we don't have that, god forbid. >> i don't understand what the big issue is about the regulators investigating it. if it isn't insider trading, aren't any problems with it so be it, but the fact that the regulators are investigating that's a good thing. that could be the best disinfectant. let's see if it's as pure as high frequency traders say. >> plenty more in the book. think through the changes we're seeing in the system and thank

you for being here. >> thank you. >> really appreciate it. >> now he took on guns, obesity and smoking as the mayor of new york city. michael bloomberg now wants his reward from god. he's saying all his good work has earned him a place in heaven. we'll have exactly what he said when we come right back. e come . just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.

[ male announcer ] when fixed income experts... ♪ ...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. mfs. (slurp) hear that? that's the sound of your electronics sucking power from your outlets. so unplug! you'll save energy and money. (slurp) the more you know.

welcome back. during this holy week. an interview with the new york times bloomberg spoke proudly of his advocate of gun safety and says he has little doubt about what lies ahead for him. quote, i am telling you there is a god, when i get to heaven i'm not stopping to be interviewed. i am heading straight in. i have earned my place in heaven. it's not even close. we want to bring business insiders to react. it is true bloomberg is among the many billionaires that are trying to make the world a better place. i mean, it feels like the story of the day to some extent. what's the reaction been? >> the reaction has been a bit

of an outcry. bloomberg speaks his mind. he's never been shy about talking about the causes he's passionate in and gun control is important to him. and the come nent about getting into heaven seems off the cuff that he would naturally say. >> are we taking too much of what might have been just an aside or did it seem like he really kind of meant to even to make this point? >> i think that -- i haven't met him personally. he seems like a guy with a sense of humor and mike crack a sarcastic joke like this. it does seem he's done a lot of great facility l-- >> now he's left to the bill de blasio, that's why he's going to

heaven. we're going to watch all the way to heaven as we watch bill de blasio. >> he's giving so much money to so many good needy causes. he's probably right just for the wrong reason. >> if it's easier to a camel to get through an eye of a needle than for a rich man to get into heaven -- >> quoting the scripture. i like this. >> works alone. it don't get you to heaven. something like that. >> also from matthew is the line that your right hand is not supposed to see what your left hand is doing. as your doing good works you're not supposed to be taking pride in them because -- >> in it goes. >> i raise this all because michael bloomberg, i don't understand to what extent he's being serious and maybe sees this as a way of getting rid of all of his wealth to, you know, grapple with those kinds of theological points. >> he said it with a smile on

his face. >> did anybody hear him say that? was he joking. >> they say he had a grin on his face. it does sound like a comment of what more like god would say. >> you think that's something that god would say? >> a very god-like sort of stance that one takes. >> first of all, we're talking about a man -- >> he's got a direct line. >> he serve the city of new york for countless years and has a lot of time on his hands an a lot of things he wants to focus on. he's got his own think tank. maybe this is more -- >> no. i know we have to go. here's a point that i think is underlying all of this. is it enough if you had been successful and use that reputation and wealth to give it away and do these things with your name on things or is the point to not have gone in that

direction in the first place. are these vanity projects at the core? >> just the fact he's trumping it might not be the best thing he can do. >> the panel's closing thoughts. we'll see if god weighs in. wei. 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.

[ 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. make a my financial priorities appointment today. because when people talk, great things happen.

welcome back. we're unofficially called this board final thoughts. take a look at google. guys, the key point here between google and ibm is all-tech is coming under pressure. >> leading tech down. >> is that going to be the trade for tomorrow? >> yeah, i think it is. >> you told us in three words. >> buying opportunities. get in. long term. great play. >> for the stock market generally. >> specifically. >> michelle. >> can't wait for google driverless car. >> and dom. >> i would say corporate fundamentals still in focus. >> and not a great focus as we watch these trade lower. for now we'll hand it to "fast money." the show is coming up in moments with plenty more coverage. melissa leon these earnings.

>> we'll also expect the price for wavo. it will be interesting for the pressure on tech stocks, how are prices and how it will do. >> you have some indication that the demand for these shares wasn't that great even after alibaba's weren't strong yesterday. over to you guys. >> "fast money" starts right now. at this hour two big tech names weighing on the nas dag. both google and ibm. google seeing heavy losses. ibm trading lower. we have got top tech analyst monitoring the google call and bring us the updates throughout the hour. let's start off the googles big miss. our tratders are tim, brian and guy. guy, let's kick it off with you. this is one that had been doing okay. >> i think tim did a good job on the closing bell. they missed revenues. some of the