dead, you know. so, therefore, a little bit of caution out there in the market. a yield of also moving lower as well which is kind of interesting when you think, you know, really good job. >> could be a wild last hour of trading and bill and sarah are ready to take it on for you. >> indeed. >> thanks for watching "street signs." happy weekend, everybody. >> and we do welcome you to that last hour of the trade for the week on "closing bell." i'm bill griffith here at the new york stock exchange. >> and i'm sarah isaac in today for kelly evans. >> feel better, kelly. miss you. will the real economy please stand up. today's big job numbers flying in the face of an anemic gdp and fire -- for the forecast. is the jobs market roaring back, or could have been a one-time snapback from a brutal winter? there are a lot of strong opinions on both sides of this issue. very important for wall street right now. we'll hear all the views and help you make sense of it. >> oh, yeah.

>> also, the executive pay firestorm continues to burn. our becky quick is at ground zero of the dustup about coke's pay plan. speaking with both warren buffett which is coke's largest shareholder and david winters, the man who brought this issue to life. a lot still developing on this story. is coke backing off or not on that executive pay plan? becky will give us the very latest with bust-- with buffet and winters. >> boxing great floyd mayweather was supposed to be but cancelled at the last minute without a reason. i'm happy today, he says, i'm coming back and, boy, do we have a lot to talk about with mr. mayweather including the big fight tomorrow. also, his plans to try and buy the l.a. clippers, even while praising the clippers embattled owner donald sterling. don't miss this interview. i think i'll even talk a little bit about boxing. >> guess which one boxes?

>> i do on the weekend. that's my form of exercise. >> i don't. >> let's check on the markets. red arrows for the dow jones industrial average. there you see it down about 42 points. started higher on the better jobs numbers and lost some of the momentum throughout the trading day. >> and a the dow needs to gain 21 points today to be at an all-time high. we're not there now. >> nasdaq has been outperforming, the tech heavy index. just on the flat line. sort of swinging around all day long for the week. it has been an outperformer which is sort of an unusual trend. s&p 500, under some pressure right now. not huge losses, but down two points at this hour. >> let's talk about in our closing bell panel today on the exchange. patty edwards from u.s. bank and tom lydon from global trends investment, chris ressler from needham growth fund and add am for good and liesman and santelli standing by. steve liesman, let's start with you. good news and bad news in

today's jobs report, wasn't it? >> overall a good report for a couple of reasons. i think the 288 is a big number. revisions tell us maybe underlying job growth, considering that there was harsh winter weather in january and february, those upward revisions tell us maybe underlying job growth was a bit stronger than we had thought. and then you have the other data we've gotten for april which tells us you have a classic snapback so i think we're on our way to have better growth. a lot of head winds from last year have diminished. the participation rate is very difficult. it's flat. it's an issue, but i'm not sure it's a determinative issue for the economy. >> patty edwards, steve put it nicely, summed up what we saw in light of the other data. you have a nice metaphor for the economy right now and the kentucky derbiy. >> sure. so the kentucky derby is tomorrow, and i think the consumers are at this point

putting on their finery and the economic horses are in the paddock and being saddled up. we're seeing pretty good numbers in there. >> you like what you saw? the participation rate, the drop in the number of workers who are actually looking for a job, that dropped sharply, and the market, let's face it. the response today, patty, has not been exactly off to the races. >> no, it hasn't been off to the races, and we wouldn't expect that it would be just off today. we're looking at an economy that's moving in fits and starts, but if you look at some of the underlying trends, the fact that heavy construction spending or jobs were up, and that it's not government-related, it's actually private-related, that's a good sign. health care workers came in above trend. the professional services came in above trend. these are all positive signs for the economy going forward. >> well, chris, even if it is better for the economy, which i think is still up for debate, what does it mean for the stock market? will it be this continual bumpy

ride, volatility as the federal reserve continues to taper? >> i think we're going to bump along here. we're not flying away with very high growth numbers. it's certainly positive that the labor numbers were good today. we do think that's good for the consumer going into the summer. you know, companies like a car max we think should do well here as people are able to make payments on cars. we also like health care companies, people going back to work, getting on health care. companies like express scripps which had a difficult part of the week, it's the type of economy i would invest in. >> tom, is the economy recovering or not? at what pace, is job growth there or not, and what's an investor to do about that? you say stay boring through the summer. what do you mean? >> that's it, bill. i mean, investors shouldn't take big bets right now as we go through the summer. utilities have been doing very well and i think will continue to do well.

even though they were sold off earlier today, when we started to dissect the job numbers a bit and see that low participation level, we really saw utilities snap back and banks declined after the initial boom to the upside. also, municipalities. with people still suffering from april 15th, the tax-adjusted yields that you get in municipaliti municipals, that's substantial. the question is if we have a hot summer and need more of that gas, will prices continue to move up? >> at am, i wonder about the market dynamic right now. you see the better jobs numbers. steve painted a pretty optimistic picture of the economy. are we in a market yet where the stock market can rally on the better economic news and it doesn't have to be a concern about the federal reserve pulling forward its tightening? >> well, first, let me say thank you for not making us wear those ridiculous kentucky hats that the guys on the halftime report had to wear. >> oh, it's still early.

>> but we actually believe that there's a battle going on between the good news equals bad news camp, that those people are obviously worried about a pickup in economic growth because it means the fed exits earlier rather than later, and then you've got people that are i think growing in numbers that are encouraged by the economic data, and i personally believe that as we get closer to the end of tapering, that the good news equals good news camp will win out, and the market will move higher. that being said though, the weakness in consumer discretionary names and the small-cap space makes me believe that the probability of a correct is a bit higher than it was say three or four months ago. >> all right. let's bring in rick santelli. it's pretty clear, rick, that the treasury market, especially that ten-year note, it's looking at that jobs report with a glass half empty point of view, isn't it? >> you know, i'm not so sure it is. let's go through everything before we get back to the jobs report. remember, it's a four-day weekend in japan because of

golden week and japanese put a lot of orders in before they went away for the four-day weekend buying the ultra bond, the longest part of the yield curve and we're hovering right at the lowest yield of the year when we're at the high price, low yield of the day at 257. those dynamics are important. the yield curve, whether it's 2s to 10s or 5 to 10s or 5 to 30s, the king become september of '09. the euro today fell rather dramatically and looked at the headline and within half an hour it readjusted. back to that labor force participation rate. labor secretary and steve liesman see it today. it's the same level today at 62.8 that it was in december of last year and october of last year and that it was 36 years ago. now let's switch gears. let's pretend stock prices today at the lows were the same as they were in december, the same as they were in october of last year, but that level was a

36-year low. would we be bragging about it? come on! >> steve? >> you know, it's friday afternoon. i'm not sure this is the best time to do a pitch battle. i would say that rick is classically leading people to look at the wrong indicator. >> 36 years, correct or not? yes or no! >> yeah, but, rick, how many jobs were created in that period of team time? >> we have 92 million people that are able to work that aren't working. >> if you want to yell, i'll yell over you. >> go ahead, baby. >> how many jobs were created? 288 this month? >> i said it was good. >> private sector was good. >> pun in the pocket that determines the spending, rick, that determines the earnings. >> part-time. >> that determines the stock level. it's that simple, rick. we do want to watch participation rate, but we don't want to lose the horse for the

cart. >> the problem the president and the administration agreed with you and so did the last president and the president before that because we have structural unemployment nobody is thinking about fixing. >> people are thinking about it. nobody wants to spend any government money to fix it. >> the way they are thinking about it, the way they are thinking about immigration and tax reform, the way their thinking about it. they think about it and don't do anything. >> follow rick santelli -- >> rick brings up a really interesting point. >> everybody holds on to their stocks until the very end. >> go ahead, folks. >> rick brings up a really interesting point and that's the structural component. >> there's a structural component. it's a big deal. >> and the structural component, it's -- >> we get it, guys. >> steve, let me get in here for a second. >> let's not forget the philly fed's report from last fall that showed that part of the structural issue is retirement, and if you consider how many people have retired in the last year, the jocks numbers look a lot better. >> yeah. >> and you don't know what wage rates you could have that could

potentially draw some of these people back in. the more salient conversation to have is if people are dropping out of the workforce, the long-term unemployed, is labor slack quite as large as fed chair janet yellen believes it to be? could it be a situation perhaps where the fed could be forced, if we have sustained wage growth, a situation where the fed could be forced to move sooner? >> but we don't, steve. steve, we don't. >> we don't have it yet. >> if 288,000 jobs would suggest a demand for labor in this country is going up, why wouldn't that trickle out to higher wages? >> because there's a vast pool of unemployed people, people who have dropped out of the workforce. the debate for investors, the one that people should focus on, is not is it declining, does it mean it's bad? the question is will these folks, do they represent the possibility of further labor resources to the economy? >> all right. let's make this meaningful to investors before we go. >> patty edwards. knowing what we now know about the economy, and you sound very bullish here, what are you

buying here? >> you know, i wouldn't say that i'm very bullish. i'm cautiously optimistic. that being said, we are looking overseas. we like the international markets a little bit more than we like the u.s. markets right now. >> okay. >> tom lydon? >> well, overseas absolutely. if you look at the trends in the etfs, we've seen a lot of moves in monetary policy this are favorable. >> chris, what do you like now? >> technology going into the mid to end of of summer. don't forget volumes generally dry up, you know, in may, so we would be opportunistic throughout the summer months buying domestic technology companies. >> all right. >> folks. thank you. have a good weekend. >> good debate. >> steve, rick. >> kiss and make up. >> enjoy your lunch or whatever you guys do in there afterwards. >> 40 minutes left here. the dow needs a gain of 21

points for an all-time high. >> and 34 points negative. still have some time. warren buffett and other berkshire hathaway executives geek up for tomorrow's shareholder meeting in only map. our becky quick is covering the big powwow and caught up with him on the continuing controversiy about coke's pay package. >> and general motors in court trying to fend off lawsuits related to its automotive recalls. will a legal loophole shield them from liability? >> could congressional democrats win mid-term elections with jobs reports like today? our own larry kudlow and pennsylvania governor ed rendell weigh in next. weigh in next. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text.

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welcome back. the headline number on this morning's jobs report was positive. 288,000 jobs created in the month of april. much better than expected. the jobs -- the unemployment rate dropped to 6.3%. terrific, but when you read the

fine print there were some problems in there, and that may be the reason we're seeing the mixed reaction, that plus the situation in ukraine. dow down 36 points. >> gold at a three-week high. we'll stick with stocks, the hot story of the day, and that would be the jobs report pause now that the unemployment rate has fallen to its lowest level since 2008 before the president took office, does this give democrats a solid platform to run on in the upcoming mid-term elections? >> joining us to talk about a couple of friends, larry kudlow, senior cnbc contributor and ed rendell, the former governor of pennsylvania and they sit on opposite sides of the spectrum. >> no, no. governor rendell is a friend of mine. he gets an "a" for fracking. he gets an "a" for fracking. >> you won't do a repeat of the liesman/santelli here. >> i look for common ground. >> the jobs report, can this kind of a jobs report, as strong

as the headlines suggest, help the democrats this year? >> i don't think it's going to have a big political impact at all. it was a good report. it gets you back to the 200,000 per month average we've had for three years. on the other hand, this is going to hurt in the election. wages are very low. too many people are not working. the employment population, the participation rate, 92 million people are not working, things like that. in other words, in the guts of this employment recovery, it's just not there. it's just not there. i concede the unemployment rate, absolutely. >> governor rendell, how much of that impact does that headline unemployment rate make, 6.3%, that's awfully god? >> i think larry is right in the overall substantive nature of what's going on, but people look at two things. they look at unemployment rate, and it is the lowest in years, and then they look at the job creation numbers, and with the adjusted march and february figures, we've averaged almost

250,000 jobs created each month in the last three, so that's good news, but the question is what will it be in october? this good news could be forgotten come october, and the key is the momentum continuing through october? if it is, democrats have a great calling card. they can say, look, the economy is coming back, and it would come back faster if these guys would invest money in rebuilding our infrastructure. but these guys have to do some. things the president has to do. >> look, the unemployment rate is not the impact rate it used to be. why? because so few people in our population are not working. that's really the people. so with respect to governor rendell's point, i mean, it is true we've got to wait and see what happens in september and october. again, i come back to this. wages, take-home pay is really low, really low, less than 2% and that's a bad number and when you look at the part-timers who want to be full-time and look at

laid off people there for the long run, they are not happy campers. if you know somebody that's been laid off in the long run, you get worried. these are psychological issues and economic issues. against, with all due respect to the governor, i don't think raising the minimum wage is the answer. that's a democratic position. cbo says it will cost you jobs. on the other hand, i will concede this point to ed rendell. i'm not sure what the republican position is right now on the economy. i know they are against the minimum wage, and i agree. i'm not sure what exactly their growth position is. >> ed? >> well, first of raul, for the group that larry is talking about, the people who are unemployed and long-term unemployed and disenchanted, i think the republicans are on the wrong side of the unemployment compensation issue. i think it looks almost inhumane for them to take the position that they are taking. it makes no sense to me at all. i think democrats can drive that across and can drive across income inequality.

the minimum wage, we can debate whether it costs jobs or not. i remember when we raised the minimum wage under bill clinton we had the best following years of job creation we've had in the last 60 years. you can't debate the fact that when you raise the minimum wage it has the effect of raising other salaries up and up as well so i think there's a lot of stuff in the democratic arsenal and particularly the point larry makes is a good one what. do the republicans have to say about the economy? cutting taxes and lowering regulation? we tried that in the bush years, and it was a total failure. >> no, no. hang on a second. front page of the "new york times." bill clinton in his second term or actually after he got shell lacked in '94, and he's proud of this, and i'm going to back clint on on this. he was a great economic president. you know why? he was a supply-sider in his second term. he lowered the capital gains tax and participated in a deal with gingrich on welfare reform, on free trade. he did all the right things. those guys cut spending.

that's the kind of agenda we need right now. here's one for you. >> he also raised taxes on the rich? >> he did in the beginning and he lost the house and senate, and so after that he reformed. >> he spurred the economy. >> let's bring it forward. >> he didn't spur the economy then. >> what does this president need to do? >> get the keystone pipeline. >> and that is a republican policy. >> get the keystone pipeline through. for two reasons. great for jobs, tens of thousands of jobs. sends a signal to vladimir putin that we are serious about energy independence. you saw the story in the paper today. liquid natural gas can be tankered over to europe and ukraine. keystone is so important here. >> do you agree, ed? is that an issue that will resonate? you have to find issues that will resonate on a local level for this election coming up in november. will jobs be it? keystone it? >> what about obamacare?

>> first of all, if i were the president, i'd say i'm for the keystone pipeline if it's part of a comprehensive energy bill. let's get to work and in the next 30 days let's have a comprehensive energy bill that will really spur the economy at every level. i will give you keystone because it's an important part of an overall bill, that's number one. number two, remember, an i'm all for those jobs, but those jobs are temporary jobs. those aren't long-term jobs. >> they may be long-term jobs, we don't know that. >> the other thing, obamacare. >> once the pipeline is created. >> obamacare has incentivized part-timers. if you work the 30th hour, you've got to pay the cost. if you hire the 50th worker, you've got to pay the cost. i must say obamacare is going to probably be the decisive issue in this election.

>> 40 minutes to go before the closing bell. the dow, s&p and nasdaq still red. the dow is off about 35 points in this hour. the nasdaq though, still outperforming the ore two. >> and when we come back, where the jobs are. a new study shows that manufacturing has regained strength in this country with a brand new chip making plant in upstate new york where they are having trouble finding people to fill out the jobs that they have open. here's the story that you've been hearing a lot lately. hear that story coming up. >> and they call it woodstock for business nerds. our becky quick is at this weekend's big berkshire hathaway shareholder meeting in omaha. we'll hear from mr. buffet himself. becky will be interviewing buffet along with charlie munger and bill gates live on "squawk box." you won't want to miss it. nt to. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next.

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welcome back. minus signs, the nasdaq has turned negative. dow down 46 point, about 65 points away from its all-time highs. the s&p down two points. this a rather lackluster response to today's jobs report. >> which on the headlines was such a blowout number. 288,000 jobs. speaking of jobs, do you think that a high-paying job in a high-tech world is tough to come by? what if we told you at least one firm is actually having a hard time to tell workers to fill a brand new $8 million chip making

facility in up state new york. >> reporter: >> mary thompson joins us from upstate new york. >> reporter: hey, bill, when global foundries opened its 3 million square foot campus it had to impact its workforce. 2 hundreds years later it add to chip making operation and most of those hires will be working. it's finding that finding the workers it needs is difficult. the exception is this worker with 30 years experience in the semiconductor injury including two stints with intel. he's moved to malta from albuquerq albuquerque, new mexico in order to work for global foundries and as a technician he's one of the hands-on guys needed in the clean room to service the multi-million dollar machines that applies coatings to equipment made for clients like qualcomm. it's a job even with his

experience requires constant training as technology evolves. >> first of start crawling and walking and running, and the same thing with this. >> reporter: finding technicians has been difficult. the company has partnered with local community kejs to set up training programs. it's also reaching out to local high school students, telling them about the opportunities in advanced manufacturing if they have an interest in me nannics, knew matics -- an interest in mechanics, pneumatics or other i.t. global foundries is drawing from local four-year colleges like rensselaer polytech, the alma mater of new hire kevin handley. >> my main goal was to try to stay local in the area so that

was a big thing for me. >> reporter: another big thing is what they pay here at global foundries. on average their workers earn $90,000 a year, plus benefits. that's nice clean work if you have the skills to get it. back to you. >> that's a great salary for that region, mary. thank you very much. there are good manufacturing jobs out there. and let's talk about what the report indicated. >> economics contributor and former clinton white house aide. before we get into this discussion, dorothy, we should ask is there really a revival on manufacturing? you look at today's numbers and manufacturing jobs were actually flat even though we saw gains across a number of other strs.

>> i think there's potential for gains in manufacturing but there's issues, one is structural in terms of are the people who are unemployed, do they have the right skills to go in. the other is the use of robotics, and that is increasing geometrically, and that will help manufacturing in this country, but it will not produce jobs in those areas. >> what do you think, amara? what's the answer? education is going to be an issue. people need to be trained for the highly skilled jobs. if they need to move to where the jobs, are they need to be educated where the jobs are at the moment. >> right, but one of the problems in manufacturing is structured in a much more broader way. that's the most productive manufacturing in the world but it's not growing its share. overall gdp, and given the fact that it is simultaneously not growing its share of gdp, it's not going to produce enough

jobs. no wonder that because it's churning out products at the end of the higher value-added scale that it won't end up be the type of broad job creator that we need in order to move the needle. >> why this matters is because we want bigger growth and more jobs created overall. manufacturing is still what, 12% of the overall economy. it's a bellwether but how important is it that we see the manufacturing renaissance that the president talks about and some of his advisers to get overall growth? >> it's very symbolic in terms of regaining our manufacturing jobs but you look at an area like housing which is slowing down. that's where you have real jobs and a lot of employment. so some of it is more talk than will actually move the needle. >> are we making too much of these companies that can't find the workers? do you sense that's an anecdotal story more than it is a trend

out there, a statistical report that actually moves the needle on the economy here? >> one of the problems is because we don't have a systemic moon shot on the economy, nothing driving broad-based productivity gains, it's hard for people to know what skills to acquire because there's all the differentials between sectors in terms of what they need. what we need is a massive action plan on jobs. >> in the past, generations of workers would know engineering was going to be the place to go. wall street would be the place to go. >> we have that experience exactly in the late '90s where structural skill gaps fix themselves if the functioning right. the economy isn't functioning right so workers don't know which skill to acquire. >> and wages factor in here. go ahead, dorothy. >> wages are clearly not moving up, and one of the big problems we have, yes, the unemployment number has gone down dramatically, 6.3 is a big head loin number, but we're at a 20-year high in terms of the number of unemployed that have been unemployed more than 27

weeks. >> right. >> so we have a huge bifurcation in our workforce. those who have been unemployed more than 27 would exare not going to be always matched to where the jobs are. those who have been unemployed 5 weeks, 14 weeks, it's pretty normal. they go out of a job, find another. that's running at historical levels, so the structural bifurcation is a big deal. >> and when you add in those long-term unemployed, the actual unemployment rate is 12% in this country so still much higher than it needs to be. >> hasn't moved the needle, that's for sure. >> thank you for your thoughts on the jocks market in manufacturing. >> 25 minute left in the trading session here. the dow moving down. down 52 points here as we head into the weekend. >> and coming up, legal battles that you need to be keeping on your radar right now. general motors trying to circumvent recall-related lawsuits that will cost it millions.

apple dualing over patents in silicon valley. a look at potential impact on your portfolio and your wallet coming up. >> also ahead, berkshire hathaway getting ready for its annual meeting and the controversy over coke's controversial pay plan. that's coming up after the break. break. only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts,

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good news and bad news on the jobs front. you're seeing the reaction to the bad news, the participation rate so-called of the number of people actually looking for work dropped in the last month so that pushes stocks down. bond prices going higher. all the safe havens saw strength in this -- after the jobs report. >> and you still have geopolitical tensions out there as well. saw the bid for safety. three-week high for gold. courtney reagan joining us, tracking today's movers. >> that's right. we begin with estee lauder hitting a record higher earnings and casino stocks and wynn resorts posted strong results. las vegas sands and mgm rising

in sympathy. utility stocks are the best perform i performing sector and the omerc shares are falling down as well. >> a little bit of reversal weak and technology stronger. good to see you. a you will eyes on omaha where tomorrow's berkshire hathaway meeting takes place. >> and controversy over coca-cola's executive pay plan. a topic coming up and becky has already caught up with the key players in this saga so, becky, what can you tell us here? >> there are 38,000 shareholders for berkshire hathaway that are expected right here for berk shower's annual meeting. plenty to talk about before they all arrive. part of that is for the people who are arriving already,

including david winters of winter green advisers. david has been in the news a lot lately because he's a long-term coca-cola shareholder and also happens to be a long-term berkshire hathaway share holder who has been coming here for 24 years, but he's been in the news lately because of his movement to try and vote against a vote that coca-cola put to its shareholder. thought that the equity plan was too excessive. winters lost the vote, but he's not ready to give up the fight just yet. >> the idea that, you know, warren buffett, the most famous revered investor in the world would say to a company, look, i really don't like this, and the company would go ahead and do it anyway, so i think there's some real fundamental governance issues here. >> buffet made headlines because he agreed with winters. he thought the plan was too excessive, too, but he didn't vote with winters. buffet happens to be the largest shareholder with more than 9% of the coke shares outstanding. he actually abstained from the vote saying even though the plan was excessive he wanted to make sure he showed support for the

management, particularly mukhtar kent and happens to think even though coke won the vote they may go ahead and reconsider that plan anyway. >> i wouldn't be surprised that they are going to look at it certainly. i mean, with us abstaining and the fair amount of no votes and what they authorized at this meeting the other day, they don't have to do. they can spread it over a longer period of time, and we'll see what they do, but they have listened to shareholders before and i think they will listen again. >> coca-cola responded in part. the company routinely interacts with shareholders, both large and small, in order to receive feedback on a number of numbers, including about the 2014 equity plan. we do not, however, share specific details of those interactions. now, you may think you've heard a lot, but guess what, this is far from over. tomorrow buffet will be taking the stage for more than six hours of questions from shareholders right here and you can bet that this question will be raised again. kelly, i'll send it back to you. >> i'll take it now and don't

forget to tune in to becky on "squawk box" monday morning with very special guests. she will be speaking to warren buffett live and charlie munger and bill gates starting at 6:00 a.m. eastern time on monday. >> the dow in the red. looks like we're selling off a little bit into the closing bell with the dow down 56 points at this hour. red numbers for the nasdaq and s&p as well. >> much more in the markets. we'll talk to legg mason's chief executive officer about where he sees the economy heading. you won't see him anywhere else. >> and we'll get you up to speed on two legal battles that couple pact your portfolio and wallet. general motors trying to stave off liability suits related to its big apple recall and apple and soo-nyung fighting over patents. the latest developments you need to know on those stories next. t. everybody knows that. well, did you know that game show hosts

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well. >> there it is. >> in fact, it has fallen about all ten basis points today. >> and that's a three-month low. unusual to see it given the fact that all the economists were raving about the jobs report. there's the japanese yen. look at that intraday reversal that we saw in the morning. that was a sign that equities were going to head lower. stronger yen and bidding for safety. >> you're welcome, sarah. >> two significant legal battles right now that you need to be keeping tabs on. apple and samsung engaged in a bitter patent dispute. the jury could decide at any moment, and also general motors is trying to fend off liabilities suits related to its big auto recall. >> two important stories. josh lipton bringing us up to speed on both. josh? >> no josh lipton. >> from the courthouse, looking forward to that. we'll hopefully get him coming up, but first we'll go to break here. less than 15 minutes left before the closing bell. we've got a dow in the red, down 50 points at this hour.

much more on markets as we close out the session and the week. >> now, if you were with us yesterday you'll remember floyd m mayweather, the welterweight champion of the world, has rescheduled with us to talk about the upcoming fight and his interest of buying the los angeles clippers from a man he calls his friend, clipper's owner don sterling. do not touch that remote, if for no other reason to find out if mayweather actually shows up this time. >> looking forward to that. anyone who calls don sterling a friend right now is a bold man. .

welcome back. ten minutes left in the trading session here, and just a reminder the dow needed to be up 21 points to hit an all-time high today. >> looks like that won't happen. the dow closing out it looks like down 50 at this hour. still a few minutes to go and also lower for the week. nasdaq pretty much holding up all week. it is flat, but has gone red just in the last hour here. >> joining us with their view of the market right now, mark martiac from premier health and david darst, nice to see you. the jobs report, headline looked good. the fine print, not so good.

>> what's not to like? consumer spending, consumer confidence, the jobs numbers on the headline, which adds to confidence. on the industrial side, the chicago purchasing manager's index, above 60. you've got the philadelphia fed. you had the lead economic indicators, the durable goods orders. on the negative side, profits have not knocked the ball out of the park. china is still going to be going through a slow period, and europe is continuing to flirt with deflation. the yellow brick road was really about the gold standard. that's the symbol of the yellow brick road. disney's movie "frozen" is about global deflation. >> wow. >> and you've got to be careful. >> got to think about that one for a minute. >> that's the worry in europe, and in japan and the united states, inflation is too low. >> it's sort of a nice recap of everything that's going on right now globally, positive and negative. mark, are you surprised then to see the markets finish the week

negative given what you started out with which was a pretty solid jobs report? >> david makes a great point on many fronts. great market value and market valuations and gough political risk are offset by accelerated m & a activity and better corporate earnings, so i'm -- i'm not surprised because we've had choppiness over most of the month of april, but -- and there have been outflows from equity funds? right >> the last two weeks, consistent outflows into all fixed income categories. >> and the market, let's face it, has been defensive for the last month. it is the defensive players, the utilities that have done well here. the dividend payers, the bond market and look at the treasury and ten-year note falling back today, just 2.6%. >> the energy stocks up 5%, 6% and all 5% was april. a defensive dividend-oriented

area. i like the master limited partnerships and europe, so look at those two areas. they are performing well, and i think you can stay with the areas that are doing well right now. >> really is a mixed bag when you look at gdp. i want to pick up on the earnings theme that david brought up here because we're three-quarters in the way in terms of companies reporting. >> 70% have beat the consensus of earnings per share, you know, the estimates. so 73% of the over 50% or 75% of the s&p 500 that have reported, they have beat the consensus per share earnings, september forecasts. >> you'll love this. the s&p sells a 1.67 times sales which is double its long-term average so valuation is a concern relative to book value and relative to earnings and to sales. they are double the long-term average. >> looking a little rich there. guys, stick around. we'll talk more about this and look ahead to next work.

i know darst has the whole calendar in his mind right there, and he'll recount what to look forward to. we've got the countdown coming for you. >> and after the bell president obama calling out russian president vladimir putin for being dishonest about ukraine. putin calling for an emergency meeting of the united nations security council, aggression forces shoot down two ukrainian helicopters today. because we'll have the very latest on the developments, the tensions and how it's all impacting the markets. you're watching cnbc, first in business worldwide. ss worldwide.

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coming up on the three-minute mark, let's do a quick recap of the week. we saw some volatility early in the week here. this is the dow for the last five trading sessions. that selloff on monday, we came back. remember this wild turnaround. we were up 100 points. we were down negative for a time and then we finished up 100 points. sideways for the most part, and we'll finish the week out with about almost a 1% gain on the dow jones industrial average as we go out here just off those all-time highs that were set on wednesday. the ten-year note, equally volatile this week with all the economic data we had out. the fed meeting was on wednesday, and the yield has been going lower. we started the week. we got as high as 2.72% this week, and we're going out below 2.6%. 2.59% is the yield on the ten-year note right now.

and look at this, guys, the best performing sector in the s&p 500 this week, the telecom play. this is a classic defensive play in the market. pays dividends. everybody likes it for that reason. it's going out with a gain of 2.7%. but look at this. the worst performing sector. there are ten sectors in the s&p 5 00 500, the worst performing sector the utilities and most of that the result of a selloff just today, and we're going out with a decline for the week on utilities of 1.3%. what do you make of that? isn't that interesting? >> it is very interesting. mark and bill, the utilities, there's a big merger going on, as you know, and that's caused one of the big leaders this year to sell off a little bit. so that's one reason. also, interest rates -- they usually go down when interest rates are going up, and interest rates are going down. i find it very disconcerting that the ten-year is below 260. finally the telecom sector, 60%

of it is telecom equipment suppliers. >> that's right. >> service providers. >> and that's -- that's basically china is about to upgrade their networks, and everybody is hoping that we'll be able to get past spying and all the other things and get some sales over there. >> don't forget cap-x spending. >> the money they spend on factories and equipment and stuff like that. >> you'll see a bounceback in the utilities sector, i think so. i can that will continue to sell off. see that in telecommunications continuing to go higher. >> and why the yield on the ten-year, for example, is still going lower. that would suggest that bond market traders expect a slower economy and not a faster growing economy. >> three of the four biggest economies in the world, china, japan and europe, are slow, very slow, and inflation is low. secondly, the fed cannot let interest rates rise too quickly because our debt is so big.

>> none of the central banks will let interest rates go higher. >> that's for sure what's happening. thank you both. >> thank sghu that's it for the first hour of "closing bell." as we close out this week, all averages down. stay tuned for the second hour coming right now. >> welcome to the "closing bell." i'm sarah eisen in for kelly evans. bill griff sit joining us on the panel in a moment. a look at how we're closing out the day and the week. in the red, the dow, s&p and nasdaq, dow settling down 46 to 47 points here, and the nasdaq sort of holding up throughout the day closing down pretty flat. s&p 500 closing a little lower as well so nothing sharp but red arrows. let's bring in red arrows. dominic chu is here and also

"fast money" trader tim seymour. bill griffith joins us. we're still near a record high. >> we've been talking about how the markets have been going up and down and the volatility and this is performing and that isn't performing and we've been hanging on our chairs for the payroll data which was good but we, you know, had a 32% year last year. that's terrific, and we've gone sideways since. this is an investor's dream kind of a market right now, and it gives time for the fundamentals to improve and heal and the ratios look better. >> tim seymour, why did the market do what it did? headline numbers on jobs looks good. >> right. >> is it the fine print or what's going on in the ukraine, all of the above? what are you talking about? >> ukraine is trumping the financial data today which is too bad because i think the

payroll numbers are pretty important. 225 on profit payrolls, that's very strong, and the recovery, i think tells you that, you know, the second quarter will be somewhat spring loading. i'm not surprised to see equities suffer under the weight of what i think will be some interest rate uncertainty. i will be a several of the long end, a couple of ten-year traders. think we can test 250 but no more. the bond market was shortcoming into this number and one of the reasons we saw a bigger move in bonds than i thought we would. >> the russell actually closed higher. technology, as i mentioned, the nasdaq, outperformed the broader intention and utilities got absolutely hammered. a different pattern that we've been seeing. >> it is, but keep in mind the nasdaq is down overall for the past monday underperforming the s&p and tradeers have been talking and saying, look, the numbers we've been getting from companies haven't been that bad. we saw a rout in some. high stocks and biotech stocks.

investors want to get in and don't forget the backdrop of corporate results, starting to see m & a activity and every single person i talked to say the companies they have been speaking to, capital spending is picking up. companies opening their wallets. good fundamental signs. >> and the private second- or added 270,000 jobs. >> the participation rate, that spooked a lot of people, dom. you know, the earnings, all this week, you watch all of this on a gran lar basis like we all do. what do you make of what happened this week and here we go, the market not that far away from an all-time high. >> here's the point. there are trades happening right now and trades that are happening because of specific reasons. not like you have a risk on, risk off environment where you're dumping everything and putting everything to a safety pin what. it comes down to. when you see utilities lag on a day like today. utilities are seen as a safer place to put your money into the stock market. they are, again, one of the safety bins. you see yields coming down

meaning treasuries are at least bid. one interesting point here. i was speaking to steve liesman earlier and he thought it was interesting. the way treasuries are moving right now, would you think that taper, the fact that the fed is moving back on stimulus would have an upward bias towards rates, and you're not really seeing that right now. yes, there's a bit of a safety trade and you're seeing some people wanting to buy those treasuries and that means maybe no fear of inflation is coming anyway down the road. >> really is mind-boggling because you see this 288 best since january 2012 on jobs growth and you see the fed rates taper. what about this insatiable appetite for u.s. government debt, especially when you look longer end of the curve? >> gold which is in a bear market and had a bold rally based on global uncertainty is one of your clues. i think also the dollar -- the dollar should be rallying more here. if you look at the dxy, one of the great pain trades where people have been offsides. i look at trish ice in a range

of 260 and 280 in the ten-year mostly for the last one year, and until we break out of that range decidedly, i don't think you should be that concerned. we still know janet yellen will still be tapering, meeting next week, joint senate committee, something to listen to. i think we'll get information that has people feel information that say rates could go higher. >> and we have to look at that participation rate. that's structural. that's been coming down since 2000. we've got to get used to that. that's not going to go away as these over 65 baby boomers continue to take themselves out of the workforce, and i think as liesman said earlier today, too, dom, that those folks who run employed for the much longer term probably are never going to return to work. >> so much harder to find a job the longer you've been out of work. yes, a lot of those guys who are out of the workforce are probably never coming back. >> not to mention you have this permanent temporary hiring impact. >> the unemployment number, you

know, everybody points to that 6.3%, but when you add in the -- the people who have been out of work for the long period of time, that's 12% right now. >> underemployment. >> and the average hourly wages basically being flat, certainly not encouraging. >> need to see job growth and wage growth go with it at the same time and that's not happening. >> u6 got the 17.5% at the real lows there, if you will, so this is really not bad. >> i agree. >> 12.3% actually. >> i think people are pointing to the participation rate today and trying to put too much of a pooh-pooh on the number. look at the two-week trends and three-woke trends and the three-month trends say the labor market is healing slowly, the construction market for sure and the financial services market somewhat. places where we lost the most jobs and they are actually coming back. >> so is it enough to make you rethink the outlook for the

economy giving the fact that we're coming off a 0.1% economy in terms of growth for the first quarter and corporate earnings are slow on the revenue side? >> i'm of the belief that we're seeing slow but choppy growth. u.s. economy is in mid-cycle at this point, and i think we'll be surprised. i think we'll print north of 4% gdp in the -- >> 4%. >> wow. >> and i think the market is rotating to those stocks like the commodity nails, the miners, diversified miners doing okay with commodities at highs. >> you know what's nice to hearings guys, first of all, that there's a -- that you're investing in certain places because of fundamental reasons. that's an important sign. that means you can actually make money in a market that's not just all going up or down again. >> jim cramer makes that point a lot, too. >> last hour we highlighted manufacturing and the role it will play, but technology, let's face it, that's got to be a huge driver of jobs right now, and, you know, we're seeing it to

some degree but still not the big gorilla we're hoping for here. >> it may not be the big gorilla but you can't discount this. yes, a lot are priced to perfection, but apple, they have been crushing numbers. google, 25% plus growth rates, really strong companies that are hiring people. that's a pretty good sign. >> but we've still got a number of companies. in fact, one of them we highlighted that still can't find the skilled workers it's looking for right now. >> is that an anecdotal problem, or is that a systemic problem in the economy right now? >> you know, i think it's a systemic problem, and i think it goes back to education and the focus of the education in the u.s. we don't have the math and science and technical degrees and other countries around the world do. we're hiring that expertise where we need it. if it's a problem in the u.s., we have to address it a different way. >> meanwhile, what deflation, on facebook the other day, paid 4.88 a gallon for gasoline in washington, d.c. what deflation?

>> it killed me, by the way. >> okay. >> i would drive to the next gas station. >> have you seen what limes cost these days? >> they tripled in cost. >> it's funny you say that because if you look at the commodities face, the fertilizer companies have been doing extremely well, potash space, a space where i'm long and stay long, you see the pricing and cartel broke down but the food inflation story is something that will rear its ugly head and you have to be careful. >> el nino is coming, tim seymour. >> limes going higher. >> "l.a. times" going higher. >> if you can find them. >> thank you, everybody. >> thanks, tim. >> stick around and catch more of tim seymour and the rest of us "fast money" crew coming up at 5:00 p.m. also they will be having breaking news on berkshire hathaway earnings. >> in the meantime, the april jobs report blew away wall street estimates on the headline but our next guests say they don't believe the hype. why he says this is all smoke and mirrors for what's been in

his view was a pretty bad report. he'll explain coming up. >> and pro-russian separatists claiming they shot down two ukrainian helicopters. coming up, we'll look at whether an all-out war between russia and ukraine is inevitable and how the markets and the west could respond to the increased tensions. >> and then he cancelled on us yesterday at the last minute with no reason given, but boxing champ floyd mayweather has promised to come back with us today, so will he step into the ring with us, and especially with sarah who boxes, by the way. >> i would never go up against lloyd. >> he'll tell us why he wants to buy the l.a. clippers from donald sterling who has been banned, as we know, for life, and mayweather says sterling is a friend of his so there's a good chance, really good chance for a good interview with floyd mayweather jr. coming up this hour. stay tuned. stay tuned. and guaranteed one-second trades. and at the center of it all is a surprisingly low price --

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add it all up, and it looks like the bulls won the week. >> the major averages all higher since monday. bob pisani wraps it up for us. robert? >> a terrific jobs report. s&p 500 marred by the very low labor force participation rate which caused trauma. and president vladimir putin of

russia wants a security council meeting to discuss the situation in ukraine. a lot of people were concerned this may be a pretext for an invasion of ukraine and the stock market dropped and bond market rallied on that news. let's talk about some individual stocks right now. linkedin had a decent report. they actually beat the estimates, but it wasn't good enough overall. the stock moved down here. a lot of people think that they are a cloud computing company and that's the real issue. $250 back in september. take a look at wynn resorts. want to show you something about what's going on. very strong gambling revenue in macaw. oil companies have had very good earnings reports recently. exxon great newspaper the other day. unfortunately, chevron didn't quite make it. the stocks with nice rallies. look at the rally for chevron off the february bottom. value stocks and value is suddenly back in favor and in the long run the stocks have not been very good investments.

talking about ipos here today. got a real correction going on in ipo territory. ares management went public, the price talk was 21 to 23. didn't close above, that 18.69, papa murphy's, the pizza company priced at-11, the low end of the price talk. 11 to 13. that did manage a small gain, $11.05, as you can see. something unusual that's happened this week, the nasdaq actually outperformed the rest of the market. that has been a while, many months since that happened. nasdaq up 1.2%. there you see the dow industrials up fractionally. guys, have a good weekend. >> you, too, bob. thanks. >> so today's jobs numbers had everybody smiling at first, you've got that headline, 288,000 jobs created. much higher than anticipated and then you got a closer look and the so-called participation rate. 800,000 people dropped out of the work force at the same time. >> huge number. >> big debate. the positive and negatives and

we have a gathering of optimists and pessimists to try to sort all of this off. jeff cox a finance editor here at cnbc.com and the chief economist at stern agee and greg mcbride, senior financial analyst at bankrate.com. you read all of the research notes on wall street. i've gone through a few of them, and pretty much, despite the fact that there's negatives, they are taking this as a very positive optimistic signal on the u.s. economy. would you agree? >> yeah, sarah, absolutely. economists are all really happy about this, but i really think if you talk to the person on the street and ask them, you know, what do they think of the job market, i think, you know, anecdotally you're going to get a different view. if you look at the advocacy groups at the national employment labor project, they have a different view and let's talk about why. now, when you look inside the internals from this report today, you had 75,000 jobs in the service sector. you had 35,000 retail jobs. you had 33,000 jobs created in bars and restaurants. you have 15,000 jobs created in

health care but in like laundry services, those kinds of things, and one of the really disturbing numbers out of this was the household survey actually showed 73,000 fewer jobs, fewer people working than last month, so you ask yourself why are people suspicious of these numbers? why are these numbers so noisy? when you look inside, it's not totally a pretty picture. >> lindsay, are we obsessing too much about that participation rate? >> i really don't think so. when you look at the breakdown of this report we see the decline in the unemployment rate. naturally we think it's because thousands of americans found gainful employment, but in fact what we see is hundreds of thousands actually dropped out of the labor force. now i find this particularly alarming because at this point in the recovery, if there was underlying momentum or even the expectation of further growth in employment going forward, we would expect that unemployment rate to rise as previous dropouts move back into the labor force, so certainly the headline increase this morning

was very impressive, and if that's all we were looking at it, would be hard to make a negative case for the labor market, but we have to focus on that decline in the unemployment rate as a result of the inorganic reasons. >> let's bring in the panel here because we know that guys, janet yellen, is focused on a lot more than the simple unemployment rate. >> here's my question. are we seeing tangible effects of this kind of thing happening in the marketplace? are we seeing the consumer really affected? are they starting to spend more and seeing signs that maybe things are on track and we shouldn't be that worried about what's happening with the job market right now? >> well, consumers aren't feeling upbeat about their overall financial security. we've seen this for several months running, and then also, we've had 200,000 plus jobs added, three month in a row. that's the type of headline that really resonates with consume errs and we've seen some nice uptick in consumer spending, even on the business spending, the capacity and utilization side. today's job markets report was icing on the cake that illustrates we'll have a sharply

improved economy in the second quarter as we carry over into the third quarter after the disful third quarter. >> you have to be careful. >> i've been to the grocery store the past couple of times in the last month and my wife doesn't like to go with her because i for example out so bad about the prices. >> did you find any limes, by the way? >> a hot topic. >> i think there's an important point to be made here in terms of when you look at hours worked and hourly wages, they are flat. so, you know, you might see the higher end consumer being happier and having a good time out there, but middle america, you know, where these kind of things really count, there's still a lot of work to be done yet. >> lindsay, my question to you is we've been talking about these trends when it comes to labor participation and when it comes to average hourly wages and the type of jobs that are being created right now. a lot of questions about the quality of it. is this just a fundamental reshifting of the american economy that we just all have to wake up to that we're finally realizing so many years after the recovery, or is there still a chance that it can be turned around? >> i do not think that this is a

long-term trend or it doesn't have to be a long-term trend. when we talk to small businesses and the type of employment that we're looking for, they are still looking to cut costs and still looking for flexible labor so they are taking on part-time or temporary workers which is typically a bridge to full-time long-term employment but we're not seeing that bridge, and until the economy starts to show a bit more certainty, i expect that that will continue to be a significant portion of the employment. going back to the previous point made about the consumer. very disingenuous to talk about recent rebound as if it's momentum going to carry forward. we've seen improvement compared to the very low lows at the start of the year, but when we take a step back and look at a longer-term average, we're still seeing downward trends in investment, consumption and very stagnant levels in employment overall. >> yeah. still a slow recovery here. folks, thank you for joining us. appreciate it very much. see you later. let's go over to courtney reagan with a quick market flash. >> let's check out shares of

jpmorgan falling in after hours trading and in the company reporting a 10.4 billion exposure to russia as of march 31st and is closely monitoring events in russia and the impact of possible or potential sanctions the right now jpmorgan trading down 1% after hours. sarah? >> thanks for checking on that, courtney. >> russian president vladimir putin calling for u.n. security council meeting over the escalating violence in ukraine, this as pro-russian and ukrainian forces clash in one of the largest cities with two ukrainian helicopters being shot down, so what is vladimir putin's next move? up next, we'll ask one of his biggest critics. >> and we'll talk why the markets didn't respond all that much to what happened today. >> and speaking of fights, boxy champs, floyd mayweather has a big one on pay-per-view this weekend and may be in for an even bigger battle when it comes to buying the l.a. clippers. we'll find out why he wants to

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pay package. carl icahn has written what he called an informative piece on why buffet is wrong on coke which will appear tomorrow in "baron's ". warren buffett opposes the pay pack package but didn't vote against it because he didn't want to show nonsupport for the management. we'll have more on the "fast money" halftime report. >> do you think we can give carl icahn a call and duke it out? >> i don't know if warren buffett would play ball with that. >> interesting that he picked up here. it is a shareholder issue? >> absolutely. >> not really in coke necessarily, but this -- this has to do with his activist ways and his ways to try to transform corporate governance. >> on to other things that have moved the market today. tensions escalating in ukraine between native and pro-russian forces with clashes and helicopters being shot down today. >> yeah.

president obama and german chancellor angela merkel discussing russian sanctions today at the white house. our john harwood is there. you know, you can say one thing, john. it does seem miss merkel and president obama did put past their differences on the nsa spying. they were aligned. >> reporter: they are not together on nsa spying and made that plain and ukraine is the issue as angela merkel said. that dominated their meeting, and that situation is getting worse, not better. two helicopters, ukrainians helicopters shot down by pro-russian militants there. you had 38 people killed in odessa in a fire. you had other skirmishes with four people losing their lives. you have ukrainian forces trying to eject some of those pro-russian militants from some of the positions they have taken up in eastern ukraine and merkel and the president at the white house said if russia doesn't stop interfering in ukrainians' internal affairs in advance of the may 25th elections they will

consider more serious sanctions than they have so far. >> russian leadership must know that if it continues to destabilize eastern ukraine and disrupt this month's presidential election, we will move quickly on additional steps, including further sanctions that will impose greater costs but that's a choice facing the russian leadership. our preference is a diplomatic resolution to this issue. >> and, guys, the president did not say that if they moved to sectoral sanctions including on energy that that would cut off the flow of russian energy sources to europe. he noted that even at the height of the gold war that step was not taken, but he did say that actions would affect that sector, and so we'll have to see over the next three weeks before that election whether we get to that point. >> yeah. obviously corporate america, john harwood, has to be watching, and when you talk about sectoral sanctions you start to talk about the russian economy and some of the business sectors. so many have been pouring into

russia as an emerging market. >> you have to be concerned not only for the russian business community but the american and european business communities as well. >> all right. john harwood. good to see you. >> thanks for summarizing what happened at the white house today. >> despite the turmoil ravaging ukraine. the impact on the u.s. markets has been pretty minimal thus far and as the tension mounts some market watchers feel ripple effects could be in store. >> more on the market implications on the moves. breathsling in bill broderick. you're no fan of vladimir putin, but let me ask you why you feel the markets really haven't reacted the way you think they would. i mean, gold popped a little bit today. not a whole lot. the treasure market is up, the dollar is up, but why hasn't the market really responded to what's become an escalating crisis there in that part of the world? >> well, it -- it really comes down to the way in which vladimir putin is sort of executing what i would describe

as a war that's currently under way. so there were historic wars where countries would invade other countries with their armies, but the way that putin is going about it he's sending in like 500 or 1,000 of his special forces and then agitating and finding local militants to -- to operate under them, and so everybody watches this, and they say there's no declaration of war and, therefore, we don't have to react whereas anyone looking at this, this is war right now. >> i wonder if you're a u.s. ambassador, how do you assess the risk around some of these geopolitical tensions assuming they do get worse as described here. i want to bring in the panel. what do you think? >> i think it's the uncertainty at this point, and in the near term uncertainty, i think somehow markets have gotten comfortable w.barring something really unforeseen here, we're okay with the level of rhetoric at this point going on, particularly when we see i think it probably calmed market as much as anything to see the president and angela merkel, at

least meeting and getting along with each other. i think the thing that we're not really focused on is the impact to the business in western europe and the economies in western europe that are already so fragile. they are trade partiers with the u.s., but in this relationship we are the chicken and they are the pig discussing breakfast. >> yeah. bill, i mean, clearly the german business lobby going into this meeting was opposed to further sanctions. how fragile is the european economy which is much more closely tied to russia than the u.s. >> i would argue that -- that the main issue is not so much german businesses in russia. there is some and they have assets and they would be impaired, but the main issue with this thing is gas supplies to europe. russia currently supplies about 30% of europe's natural gas. >> right. >> and if -- if the pipeline gets disrupted, which it could easily do if there's a war. that will have severe and very far-reaching consequences in europe and across the globe.

>> bill, how interested would you be though in seeing just how much companies really try to get ahead of this store. we just heard courtney reagan give us a market flash on jpmorgan quantifying how much exposure it has to russia. we know oil companies like,on mobile have big partnerships in the oil business. how important is it for companies to actually get out there and say how much will this particular thing or situation impact our bottom lines? >> well, for companies that are actually there. they should do this, because what's going to happen is there's going to be a moment in time in the future where i believe that russia will impose some firm and serious capital controls, and they won't let people take their money out of the country, and at that point everyone will be scrambling to say how much exposure do i have in this company or that company, so for a company that gets ahead of it like jpmorgan and say here's what we got, and can you do your math and here eat exposure, then it won't be so terrifying than for companies who feel good about the whole

thing. >> how does he get out of this and back out of this box he's gotten himself into? >> quickly, bill. >> he doesn't. he only escalates. this is a man who never backs down. mafia rules. >> so what happens? >> what happens is he invades ukraine and starts working on other countries, and the big risk is when he goes after the baltics and challenges nato, then we have to say are we going to go to war or have a military confrontation with russia, and he's hoping that we'll say no and nato is gone. >> so this is going to happen? >> this is going to happen with ukraine. >> a scary picture you've painted there. >> wow. >> i know we'll be talking again. i look forward to the day when we can just talk about the markets and not have to worry about russia at that point. thanks, good to see you again. >> you, too. >> we'll take a break and get the outlook from the government from legg mason. investors are pouring money into his fund. is that a sign the market still has more room to rally? don't miss our exclusive interview with him coming up. >> and the kentucky derby has

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global asset management firm legg mason in the green today, the company reporting fourth quarter earnings yesterday morning that were in line with estimates at 59 cents per share. >> so for more on those results as well as reaction to today's jobs report we're joined exclusive by legg mason ceo joe sullivan. >> welcome back, joe. >> good to see you, joe. before we get into your individual results here we are. the market is closing red for the day on a day that we found out that in april we saw the best rate of jobs growth since 2012. are you surprised? >> a little bit, i think. it was a better number than we would have expected and you would have looked for the market to do a little bit better, but i think that we think that this recovery is going to be will continue and will be sustained. it's going to be bumpy and slow.

we've seen statistics come back and economic data come back, fits and starts. we seem to take two steps forward and one step back so i think, you know, that combined with some of the geopolitical issues out there keep investors a little bit cautious. >> speaking of which, the data i see on the individual investor out there is so scattered right now. maybe you can give us a sense of who you think or the mindset of the individual investor. you get the statistics and surveys that show people don't trust the stock market and don't want to invest in the stock market. we hear about the lack of participation and there's companies like yours where you're seeing really big net inflows and where is the individual investor relative to the stock market right now? >> well, first of all, bill, thank you. in the teaser you said people are pouring money into our funds

and they should be. we're improving in our net flows and seeing the individual investor remains cautious so they have a dilemma. they won't be able to achieve their long-term goals with fixed income where it is right now alone. fixed income does remain an important asset class. clients are continuing to invest there, but they need more and so they are having to embrace an additional element of risk using equities. we're seeing that globally and seeing that in asia and europe and seeing it here, but they are not jumping in with both feed and it's understandable. >> i wanted to ask you about your second biggest shareholder, advocating for change. i know he's been involved with legg mason. he supported you coming on board to help turn around the business in 2013. is he satisfied with the transformation that you're executing right now?

>> well, i -- i don't know. you would have to ask him if he's satisfied or not, but i think he is. nelson and i have i would say a very good relationship. it's very candid. and constructive. we talk about a lot of different issues. we've done a lot of things over the course of this last year. we've done divestitures. we've done some other streamlining and we've done some acquisitions and puts and takes during the course of the year. in many cases that involves expenditures and some cases it involves charges and nelson has been supportive all the way along. that's been about kind of getting legg mason to the right place to grow again, and that's what his focusing is for the next year as is mine which is growth. our company needs to grow, and nelson's been a good partner in supporting the things that i've put forward and our team has put forward to put us in a position to grow. >> i'm going to go back to investing for just a second as we wrap up here. you talk about the cautious

investor. do you blame them. should they be more fully invested, or is that an appropriate attitude to have for the individual investor considering all the markets that have been through in the last five or six years here? >> well, look, i think the crisis itself, and i kind of hate to go back there, but the crisis itself created another kind of a crisis, right? a crisis in confidence to a degree. >> yeah. >> so that's building back slowly for the retail investor. at the same time i think they realized that the returns they are getting by, you know, sort of this preoccupation with fixed income for a number of years and now we're sitting with rates at relatively historic lows. those kind of rates are not going to get the investor where they need to be, so i think they are beginning to move back into the market. they are caution, and i don't blame them. still a lot of noise going on out there, whether it's geopolitical, whether it's economic news, not just economic

news in the u.s. and asia and europe so they are cautiously moving back in the markets. we do see a change in the risk appetite. it's not cady bar the door. >> contrarians like to see that, like to see that happen. >> joe sullivan, ceo of legg mason, thanks for joining us. >> thank you, it's been my pleasure. >> millions and millions of dollars will be moving on saturday, but we're not talking on wall street. the money will be flying in louisville, kentucky with the 140th running of the kentucky derby. coming up, we'll meet an asset manager with three horses making a run for the roses. >> how do you pick your favorite in that case? >> how do you monitor that? >> saturday night floyd mayweather is making at least $32 million in his championship boxing match. that should help him buy the l.a. clippers which he's expressed interest in. the champ will join us coming up as well. stay tuned. stay tuned. latte or au lait?

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what an incredible week. much speculation as to who will buy the lap clippers if and when they go up for sale. everyone from magic johnson. he took himself out of the running, oprah is interesting, larry ellison and david geffen. >> skechers. >> corporations are interested. >> who might be most suitable than last year's highest paid at lead, lloyd mayweather also good

friends with owner donald sterling. >> lloyd mayweather joins us. missed you yesterday and glad you're here. big fight which we'll talk about in a moment. what about the clipers? would you buy it to make a statement, or would you buy it because you think it's a good business? >> the clippers are unbelievable, they have the best color in the world, red, white and blue. i have a place in l.a., and -- and who don't like the clipers? >> what kind of response have you gotten to your remarks about donald sterling? you call him a friend, that he's a good guy. when you consider -- go ahead. >> it's about being honest. donald sterling has always been respectful and nice to me. i can't really speak on anything else. can only talk about myself and his relationship. him and his wife have always been respectful to me and always treated me like a gentleman. >> so are you going to make a bid for the clippers?

>> hopefully, you know. me and my team, you know, we're ready to go. we're ready to make it happen, if it's possible. >> how much do you think the team is worth? >> i can't really say how much the team is worth, but, you know, my thing is everybody should be treated fair. i believe should be treated fair if i'm put in the position, staff, employees and the fans, everybody should be treated fair. >> have you spoken to donald sterling since all this broke? i mean, and, again, what kind of reaction have you gotten to those comments you made about him? >> i don't really know, you know. last time i checked, you know, in this country it's freedom of speech, and if i cannot be anything, i can be honest, you know. the things that was put on -- the thing that was in the recording, that may not have been right, but i'm only going by how he has treated me. >> okay. >> certainly fair. lloyd, want to talk about your

fight coming up, 46th professional fight. >> yes, yes. >> how many do you have left in you? >> three more. three more. >> when are we going to see you fight manny pacquiao? >> well, right now my focus is marcos maydonna. that's my focus. i got to where i got to by taking one fight at a time. got to 45-0 by not focusing on other things and other opponents that i shouldn't be focusing on. right now the guy that's in front of me is marcos maydonna so that is who i should be focused on. >> you're an overwhelming favorite going into the fight saturday night. how are you feeling about it? >> you can overlook no guy. marcos maydonna got here by doing the right thing and he's a guy i know i can't overlook. that's why in training camp i pushed myself to the limit, and i had a tremendous training camp.

we got all the right boxing, and now it's time to go out there and give the people what they want to see, excitement. >> i was just going to say i hear the tickets on paper zhu are pretty expensive. can you guarantee a good fight tomorrow night? >> i can promise a good fight tomorrow night. >> can you help me work on my shoulder roll defense. >> sarah is a boxer. >> sarah is a boxer and i don't know if you can see her, a little tiny thing but she's a dynamo. >> i need some tips from you, floyd. good luck on saturday. >> thanks, champ. >> good to see you. >> and we look forward to see what you do with the clippers. that should be an interesting one. >> should be. >> floyd mayweather. >> from one sport to another, we'll speak to one investment pro who has three reasons to get excited about tomorrow's kentucky derbiy. >> three horses in this race. coming up, how much money he's got at stake here as well. to the next level. herem so we talked about her options.

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the 140th kentucky derby kicking off tomorrow but we want to know here at cnbc of course what do horse racing and the stock market have in common? >> let's ask our next guest. he's the chief investment officer by trade. that's his day job.

he's a partial owner of three different horses set to run in the derby tomorrow. jim is with river road asset management. how did that happen. >> looking very snazzy. >> was that by design or how did that happen that you got three horses in the race tomorrow? >> actually it wasn't all luck. it was partially an attempt to find the best people you could be with to try to get to the derby. getting to the derby has been one of every horseman's goals and my goal since i was very young so i learned later on and the anlage in the investment world helped me do this. at river road asset management where i'm at we look for the best people, the most exceptional people in great businesses. and that same thing i learned is appropriate in horses. >> for people listening on satellite radio, the horses we're talking about, you have 5%

stake in harry's holiday, 9% stake in intense holiday and general a. rod you have the 40% stake in that particular horse. you're not picking a favorite, are you? >> well, i have a little bit more in general a. rod. so i don't mind if he finishes first. >> okay. >> but the people at the starlight stables with intense holiday and sky high racing, we've got the best trainers. we picked the best people in this just like we do in investing. we pick the best people at river road. >> speaking of investing, we have some favorites right now. california chrome was like a 5-2. i mean, that's a good one too. also wicked strong the number 19 horse here. those are expensive by some measures. how do you gauge as an owner when you think there's value in betting a certain horse as opposed to having it be too expensive? the odds be so, so thin you don't want to bet that horse? >> that's a good question.

as far as betting, it's a shoot. sorry about that. but the longer shoots are sometimes very good bets. intense holiday if it's a come from behinder he's a good shot and he'll be very good shot in the field of 18 or 19 horses and general a. rod will be out there near the front somewhere and we hope he holds on and he may be 10 to 15 to 1 also. those are nice horses to put together and exact them with some of the monie ones you ment also. >> what attracted you to horse racing in the first place? it's such a hard way to make money. >> it's not a good way to make money. you have to have a love for the sport just like any other thing but you have to pick the right people to be involved with. i started out as a young man in louisville, kentucky watching

the races as a 5, 6, 7, 8-year-old. got hooked on it. as i got older i bought my first horse on master charge for $1,000 and i had to get a friend to go in half on it with me in the mid 70s. >> look where you are today. >> if that's how you're dressing today, i can't wait to see what you're wearing tomorrow on derby day itself. >> neon orange. >> that's the best part. >> thank you. >> the fashion. >> don't forget, you can catch the running for the roses tomorrow on nbc. coverage begins at 4:00 p.m. eastern time. >> neon orange. up next, we'll recap the week that was and of course look ahead to major events that could move the market next week. >> on monday, closing bell will start the new week with the ceo of oculus which was recently acquired by facebook. stay tuned for that. uned for th. i always say be the man with the plan

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get the most extensive charting wherever you are with the mobile trader app from td ameritrade. we've got news now on microsoft. let's go to courtney reagan. >> let's hear this. >> this is an interesting one. according to a new regulatory filing bill gates sold 4.6 million shares of microsoft. gate's microsoft holdings now fall below steve balmer making

balmer the biggest individual shareholder in microsoft with 333 million shares. gates now has 330 million shares. >> we were just talking about this. because first of all bill and melinda gates, the vast majority of their holdings are in the bill and melinda gates foundation. so maybe he is below ballmer but the foundation still controls microsoft. >> we have a minute left and a lot to look forward to next week. >> it comes from my great grandfather. it's a terrific recipe. the mint, the sugar, you pack the ice. it's delicious. and i feel certain that arthur would back me on that. >> i want to have a mint julep while i'm reading the article tomorrow. >> i'm watching the derby with maybe not even a mint julep, just straight up bourbon. >> on nbc. >> don't forget, there's other

pun events next week. >> did you buy the mayweather fight. >> i didn't buy it but i think i should. >> we'll go in. we can watch the fight together. >> thanks to our panel. >> "fast money" coming up in a few seconds. melissa lee what's on tap. >> thanks guys, i'll take it from here. >> where's the hat. >> what happened to your hat. >> oh, i left it behind. but i've got my mint julep. no, i wish. we'll talk apple. apple is losing market share to samsung in the tablet market. apple was one of the big technology sto technology stocks to finish in the green. we'll dig deeper into these numbers today. stronger than expected april jobs number overshadowed by a labor force declined and reunited fears of ukraine and russia helping send the early morning market rally into reversal mode. brian, kelly, it's