hi, everybody. welcome to clefnl i'm kelly evans down here at the new york stock exchange where indexes are moving in different directions. >> and we've got really two different markets going on here, something you don't see very often. i mean, take a look at dow and the nasdaq. the industrial average up over 100 points, has been for much of this day. the nasdaq is actually well off its low of the session. it was down 59 points at the low, so they are going in two different directions here, which is sort of it's not

unprecedented but it is rare. >> we'll ask people about that. the industrials bounce back today and what appears to be a de-escalation in japan, letting putin claim he's pulling troops back from the border and is calling for a dialogue on the crisis. is the market reading this one correctly? and we've got jim brent coming up in the 4:00 hour. he's some of the guys that gmo have been saying if you want to wade into an area that's incredibly cheap albeit risky it's russia and gas prom. that trade paying off well today. we'll talk to him about that. >> the russian market up 6% today after mr. putin made those comments. another big day for the earnings. after the bell, stand by for tesla. they lead the pack of my profile stocks and among them momentum players, could move in a big way based on those numbers. also reporting an hour from now. 21st century fox. the move arm of what used to be news corp. green money and it and many more so we'll get to those coming up

in the next hour. >> here's where we stand in markets that's mentioned. the dow moving strongly to the upside adding 100 points or .6 of 1% but the nasdaq a different story, down another .75 of 1% after a tough day yesterday. 4050 is the level there and the s&p moving to the upside, just about six point, 1873 this hour. >> let's talk about this crazy market in our closing bell exchange. abigail doolittle is with us and so is keith fitzgerald from money map press and larry mcdonald from new edge, usa, and mosha cohen joins us from columbia business school and kenny volcari from o'neill securities. dow up 100, nasdaq down sharply. feels like maybe the popping of the momentum stocks or the tech bubble, however you want to put it. what's going on with the two markets? >> there's two things. the weakness from the morning.

people weren't paying attention to putin's comments until after janet yellen's comments that she's keeping the interest rates at zero forever and the nasdaq continues to be under trouble -- under duress as investors and traders really look to continue to raise cash from some of those high growth names and put it back into what we see kind of the broader stable large-cap americana names. i think there's not a lot of volume here. not a lot of oomph. right at 1875. i think the sells will start to come out. >> it's not just that the dow and nasdaq are moving in different directions that has people scratching their heads. the weakness of the u.s. dollar, to some extent what's happening across the treasury space where the yield on the ten-year is behaving as if there's either serious concerns with global growth, geopolitical risks on a day when those appear to be going away. what's driving the behavior of the markets. >> if you think about the ten-year, right now we're at

2.257. the last time we were here on the ten-year u.s. equities were 1835 in early march and 1740 in early february, so there's definitely a disconnect there and then you have crashes within the market. tech names, twitter, fire eye, all of these tech names down 20%, 30%, whole foods, so it's just a massive disconnect going on right now. >> you said whole foods and that's what's so interesting. abigail, i mean, we're talking -- is this a story about the u.s. consumer, about a business that just isn't executing the way that people had expected? is there a theme to what's happening in the market today? >> great question. >> that you can discern? >> well, great question, kelly, and what i would say is i think we're continuing to see a rotation out of of stocks. this was led by the rally in bonds that started at the beginning of the year, a re-pricing of risk. smart investors are getting out of the high flier momentum names first.

disagree with kenny, love him but disagree with them. don't think the money are putting that money into the safe stocks of the dow. i think we're seeing ab rotation of stocks that will lead to a correction. >> the dow is up 100 points. >> today it is up 100 points but what about next week or two weeks for now. i think we're setting up for massive massive volatility. as an infliction point. waiting to see if the fed can take off the training wheels. i think smart investors, the repricing of risk is telling us they are not going to be able to successfully unwind without causing volatility in the markets and more importantly without causing damage to the economy 1. >> dave: what are you telling your students about the economy, is the economy growing enough to justify the kind of stock performances we've seen the last couple of months? >> i like to separate between

fundamental valuation and where prices are. in terms of fundamental valuation we have a lot of stocks that look healthy. it seems to be a lot greater than the growth numbers, but there is a flight to yield. the bond market is crazy. i've learned over the past ten years not to trust the bond market to tell us much about the future of the economy, so stocks are the place that people are parking their cash and are that's a good idea and in the shorter term any type of thing can shape things. investorses are looking at stocks like twitter that had valuations, and we're not looking at this more closely and asking harder valuation cars. >> yields are obviously pretty low and they should be going up theoretically as the fed brings in the easy money policy over

the next couple of months and that remains low and some people that's a signal that the economy is not as strong as others would sut. you're not trusting that message for the bond market. >> i'm saying a lot of things happen in the bond market. i'm saying don't look to the fed as if they have some crystal ball about what's going to happen in the economy. >> we know what's happening in the economy. we're all looking at the same measures in the economy. there are questions about future growth and we need to address those questions with what can fundamentally impact the growth trajectory of the economy. >> respectfully, professor, you've got to separate two things. there's a theme. one, bloom is off the rose as far as tech, moving out of momentum and into value. there's a mechanism that's very brutal, a serious dichotomy in how the market is working and the ten-year is always the truth serum and what that tells you is traders around the world don't have the trust they need to lever up the portfolios that

they have. gold is coming off and a lot of things speaking to a de-leveraging environment and if that were true the yield would be going the other way but the traders aren't buying it. >> that's an interesting point and let's stay on this for one moment here. do you think this has something to do with the backdrop of what's happening in japan or the fed other? what's the catalyst, why now, or is it better growth and expectations in the u.s. actually? >> there's two cat lifts. one is yellen continues to take the training wheels off and is making things up as she goes along and pointing to statistics like jobs and, for example, no inflation. if you don't eat and don't buy gas and don't buy medicine and send your kids to school then i guess inflation is low but the real economy is all about main treatment. they want to go to work and this recovery is not helping them so it's about the fed playing into wall street's hands, that's theme number one. number two de-leveraging of the tech piece, if you're looking to that people are figuring out that there are revenue models that have no revenue so the alibaba thing is a big thing because you're talking about

$240 billion worth of revenue and 30% bigger than amazon and ebay combined and for the first time we're seeing real money. those are very different scenarios being played against economics versus trader certainty. that's the split. >> there's separate points here. >> i agree with keith. >> hang on, abigail. >> there's price pressures on the ten-year which are a little bit different. looking at the past as an indicator of the future is not future. there's price pressure because of huge stock held by the fed. there's price pressure because of baby boomers retiring and parking money into bonds. there's price pressure because the spreads are so low in europe so i don't think it's enough to look at that as an indication of growth. as to the second point there are things that can and should be done to generate growth in the economy. the focus will have to change from averages to the composition of the economy that has changed over the past six years. we need to start thinking about how the returns to human capital have been changing over the past

few years and why is it that there's a concentrated amount of people with huge returns and then there's this whole other group that is falling out of the employment pool. that's not -- these people are not foregone. >> professor, that's a wonderful point. that's absolutely a wonderful point but trade verse to make decisions in realtime every single day so policy is one issue. risk on a portfolio is another one. every single night we've got to mark to market and there's value and risk that we have to account for, whether the exchanges like it or not or washington likes it or not. we can talk all we want but the fact of the matter is risk is risk and have you to deal with b it. >> you have to think about fundamental policy. >> that's a great point. >> part of your risk profile. think about what will the policy be over the next ten years? that impacts growth. >> okay. let's bring abigail back in. she's had a slight audio delay. >> if you look at the ten-year in a more simplistic term, it's been rallying since the

beginning of the year. it's pointing to something beyond the economy and looking at growth there. speaking more to systemic risk and now that the fed is trying to back away, can we make it? we've been here before. here in 2010. here in 2011. we know what happened both of those times. >> kenny, one quick question to you. you're right to some extent that you would see the ten-year rally and would think it's pointing towards perhaps some kind of flight to safety but we're not seeing what you would expect to happen with the u.s. dollar ral egalong with it or weakness in stocks. that's what makes this time seem so strange is that it's hard to kind of tell a consistent story and see that consistent flight to safety that we've seen the last couple of times whether it was europe or u.s. concerns that come to the fore. >> i actually think we're going to hit our heads here and stocks will turn lower. i think they will test the 200 day and there's a complete disconnect like the professor said between what the economic fundamentals are and what stock

prices are and stock prices are driven by the fed quality and that's got to come to a stop and there's got to be -- come to a mindset meeting, right. >> we've been saying that since 2009 and we're up 150% and how do you assess risk at the end of every single day? >> how do you do it, keith? >> i want to take a good solid look at what traders are doing. i want to take a look at where they are taking things. all the academic arguments in the world are fantastic and i respect them because that's where we need to go and have those discussions. every single morning i need to know where my portfolio is sitting and where that risk is assessed. i want to know what the ten-year is and what those stocks are going to look like. >> thanks for the energetic conversations we always enjoy this time of day. see you later. >> 45 minutes to go. the dow sitting up almost triple digits. 95 points as the nasdaq is lagging shedding 32, 4048.

the vix looks all right, it's lower. a lot of strange things happening. >> we didn't get a chance to talk about it but we will sometime this hour. watch the russell 2000, trading below its 200-day moving average and as one trader pointed out to me a lot of pension plans mark themselves to that particular index. the small caps, had a great ride the last few years but now it's flirting with the topping activity. >> a lot of stock specific names are moving markets. we head into the bulk of earnings season. speaking of which we've got more ahead coming up on the earnings clues. we've got green mountain. tesla, zillow and all among the big names to report after the close. we'll bring the numbers the instant they hit the tape and we'll break them down with our team of pros. stick around for that. >> and make or break time for yahoo! ceo marissa mayer who could make an estimated $12 billion from the alibaba initial public offering and how will

mayer put that money to work and does she have to transform yahoo! into an internet powerhouse, and how should you play yahoo!'s stock right now? we'll look at all of that coming up. >> fed chair janet yellen sees the economy growing this year but what that will do to rock bottom interest rates is the question. james grant, founder of the newsletter bearing his name. will chime in on that. you don't want to miss it. we'll be right back. okay, listen up! i'm re-workin' the menu.

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very interesting market day. you can see the dow is up 92 points. was up more than 100 a few times. the s&p up five and look at nasdaq. a lot of technology stocks, momentum stocks we've talked so much about. down hard today. twitter leading the way again after the lockup period. a lot of insider selling again. that index is down 31 points. a rare day where the blue chip average is up 100 points and the nasdaq, the tech-heavy nasdaq is down harply. almost .75%. >> yahoo! ceo marissa mayer is under pressure now that the long-awaited alibaba initial public offering has been announced. the stock down 7%. josh lipton following the story for us from silicon valley. hey, josh.

>> reporter: what alibaba's public debut means for yahoo! share holders is an open question. yahoo! owns 23% of alibaba and will sell 9% of that stake in alibaba's offering exactly how many billions of dollars that will net yahoo!. it depends on the valuation, various tax considerations. estimates on the street range from $7 billion to $11 billion what. will yahoo! do with all that money? yahoo!'s ceo marissa mayer was asked that question at a conference in new york city. >> we had previously sold part of our stake in alibaba and gotten the proceeds. we returned some of those proceeds to shareholders, in fact, the majority of proceeds went to shareholders and we did make some smart investment in the company in terms of building out talent and technology and platforms like tumblr. >> analysts say yahoo! could use the money to pay a dividend, increase its buyback program and yahoo! could use the money to

continue doing acquisitions and mayer would have to be careful when choosing acquisition targets. yahoo! does remain a turnaround story. investors may not give mayer too much leeway to make risky bets. many bought yahoo! as a proxy for alibaba. for them the question is whether you stick with marissa mayer or sell and just own alibaba instead. guys, back to you. >> thank you, josh. for more now on what alibaba's ipo filing does mean for yahoo! and marissa mayer's reign as yahoo! ceo let's bring in our guests. welcome to you both. >> good to see you both. >> nick, what was your takeaway? did you learn anything from the interview? >> interesting, she talked about spending the money and that's going to be the big question obviously going forward. she didn't give a lot of secrets about where she's taking this thing. >> you're the resident bull. >> bullish. >> on marissa mayer. coming up on her two-year anniversary at the company in july. look at a two-year chart, it

seems the market has been pleased, or is this a proxy for alibaba? >> that's the question, right, how much goodwill does marissa mayer contribute to the share price and she has had stink on them and once you get the stink on you it's very hard to shake that but yahoo! is the only company that we've actually seen make measurable progress at shaking the stink. never saw myspace do that, never saw ask do that. we haven't seen that before, so if you're looking for signs of a turnaround story what else do you want. >> all the same, nick, a lot of people would say that if the value of yahoo! stake at alibaba is $40 billion and trading at a market cap of 35, the business has no negative value. >> that's absolutely the case, and this is an unfair deby the and this is an improblem turnaround. if someone can do it it might be marissa mayer, even if it was steve jobs, a very, very difficult situation. you don't see these kinds of

turnaround in consumer web or consumer tech and mobile and things like that. just look at yahoo! from the point of view of products. what product does yahoo! have that's a must use, even in the past two years since mayer has come there in. >> i would say flickr, good investment in mail. >> she did mention that today. >> really bullish in mobile apps and we're seeing something refreshing. not trying to own the platform, trying to win on the platform. don't see that a lot. google wants to be the platform. doing something we don't see in technology a lot which is something that's outful. >> would like to be the platform. >> marisa will mention them on stage and no yahoo! apps in the top 100 in the apple app store, a really hard thing to do. a lot of times you see the new things come out of startups and snapshot is phenomenal. >> how many has she bought, a

couple dozen? it's not as if they don't have an incubator inhouse that they are apparently not bringing to the fore. >> buying failed startups, not the ones that are working. very expensive to buy ones that work. facebook tried to buy snapchat for $4 billion and they said no. 8 billion sounds like a lot of money until you realize that it costs $19 billion to buy a mobile amp with a lot of traction. >> what should they do with the proceeds from alibaba? i can't imagine if they are in turnaround mode that they are thinking about buyback or a big dividend of some kind. that's just a waste of those funds, don't you agree, natalie. >> she did specifically mention talent acquisitions that have to do with apps, more talent acquisitions and they will do a little bit of all of that, a little bit of buyback and talent acquisition.

>> they will buy tumbler, anything that's a successful app, goalor or facebook would want to buy it. they a real plan, see what netflix and amazon are doing and they want a piece of that. >> the word on the treat is pinterest as well. >> should they overpay potentially just to get something that's going to generate growth and a positive narrative? >> like they did with tumbler? >> tumbler is an interesting case where it's not a snap chat of today when they bought it. it's -- it had its momentum already and it actually slowed a little bit. they will need to buy something -- they have to kind of get something that's not the hottest ticket because the host ticket is going to go to facebook or google which has so much more cash, both of them. >> i don't think so. i don't think they are playing that game. i don't think they want to beat facebook at its own game. i think they want to be yahoo!

and their new m.o. is slow, conservative, youthful products. >> does that wash in silicon valley? >> i don't know yet. >> pleasure seeing boast of you. >> good water cooler discussion. >> the transportation department issuing an emergency order on transporting order by railroad. bertha coombs with that story right now. bertha? >> their. the d.o.t. is now ordering all companies that are transporting oil by rail to inform the communities through which they are moving, just what they are moving and how frequently they will move those systems this. comes in response, no doubt, to the latest derailment at an explosion involving oil shipments back in virginia just late last month. the order is to make that notification, but it does not order them to stop using certain tankers. they are recommending, however, that these officials stop transporting bakken oil in the

d.o.t. 111 that they say may not be stable enough in order to transport the oil. >> no kidding, bertha. big issue. i wonder to what extent that will affect volumes. 35 minutes to the close. the dow sitting up 93 points higher and nasdaq off its lows and still down 32. >> when we come back, that nightmare in nigeria getting worse as reports surface about now abductions of more schoolgirls. the u.s. issed sending help. we have a full report on that coming up. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier.

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welcome back. the unspeakable continues in nigeria. new kidnappings of schoolgirls in that country and the u.s. sending military and law enforcement to help. michelle creoso-cabrera reporting. >> reporter: another eight girls were abducted sunday night adding to the 300 missing since mid-april. kidnappings occurred in the northern part of nigeria, you can see it here and,000 though the girls' abductions are making international headlines there's been large terrorist attacks in northern nigeria for months and months now leading to a concern about the meeting of the world economic forum in abuja in the center of the country. opec facilities are in the south further away from the hotbed of

violence so there's less concern about disruption there. meantime, protests continue against the group that did the abduction and also against the government which the protesters say isn't doing enough. we're also learning more about the team the u.s. government is sending to nigeria to help, made up of technical experts including american military and law enforcement personnel and intelligence, investigations, hostage negotiating, information sharing and also victim assistance. bill, kelly, back to you. >> all right, michelle, thank you very much. we're headed towards the close here. about 30 minutes left in the trading session. not a lot of change in the last few minutes. the dow still up 95 points. >> and the thing with the nigeria case as well. this is a country that just surpassed expectations as the largest country in terms of gdp in africa, but a reminder of such a tragic situation. the world economic forum assembling but anyway. half an hour to go. we'll be right back.

heading to the close right now, 30 minutes left. the dow is up 96 point. the nasdaq is down 30 points. technology, momentum stocks, however you want to characterize them losing that momentum

continuing today while the blue chips are moving higher, s&p up six points right now, and look at twitter. speak of momentum stocks. the so-called lockup period when insiders that held shares since the company's ipo, they were free to sell if they so chose and appears they are so choosing. yesterday they had record volume on twitter and down sharply and down another 4.6% today on 60 million shares. >> a stock that was 70 bucks at the start of the year. >> yeah. >> federal reserve chairman janet yellen in the hot seat on capitol hill giving her assessment of the economy here. >> steve liesman, what are the key takeaways you took away here? >> the key testimony from janet yellen, blamed the first quarter's economic weakness on the harsh winter weather and already sees a rebound in spending and production in the first months of the spring and that leads her to be pretty optimistic about growth this year. >> looking ahead i expect that

economic activity will expand at a somewhat faster pace this year than it did last year. that the unemployment rate will continue to decline gradually and that inflation will begin to move up towards 2%. >> here's what's behind yellen's optimism. sees less fiscal restraint and less of a decline and gain in equity prices perhaps fueling spending, firming foreign growth and increasing confidence amongst business and consumers. there's potentially instability in emerging markets and there's also concern about recent housing weakness. the new fed chair gave no hint that rates would rise any sooner than the market current believes which is the second quarter of 2015, and she said the fed remains on course to end qe by the end of this year if the forecast for strong growth pans out. several representatives peppered her with questions about whether

the fed's policy of keeping interest rates so low for so long are creating financial bubbles? yellen said, no, not at this time when it comes to stocks, mentioned high yild corporate debt as one area along with small cap stocks where there could be potential bubbles in the market. >> we know what we're doing. we're taking three pit bulls and we're going to throw some red meat in the middle of it. anyway, we're going to discuss fed chair yellen's testimony today and fed policy right now. >> rick santelli joins us now along with jack bouroudjian, chief executive officer at chief financial index officers and a cnbc contributor. >> for the record, kelly, i eat carpaccio, not red meat. >> guys, i'm getting the index for april 14, going to throw

this out there as a random indicator for you. shouldn't volumes go to their highest levels since june 2011, so is the economy in fact rebounding as yellen suggested from some weather-related weakness, and if so what's happening with the bond space, with the dollar space? that doesn't seem to be behaving in accordance with that. >> a lot of questions there. let's take them one at a time. yes, the economy is improving, yes, we're seeing the numbers doing exactly what we thought they would be doing. look at unemployment and look at consumer credit which just came out, by the way, better than expected. those are the little pieces of the puzzle that we want to see. the bottom line is this. if you listen to our fed chair talk today and you're an equity trader and you're bullish, you'd absolutely love it because she told you exactly what you wanted to hear. she told you that she's going to maintain a very low interest rate environment. >> unless you're a tech stock. >> that's a different story. alibaba ipo, by the way, just added to the whole, you know, momentum downturn.

you've got a lot of people that manage nasdaq portfolios that have to raise capital to be able to include alibaba into their portfolio. >> okay. >> talking to a lot of those portfolio managers. that's what's doing it. >> rick? >> you know, i didn't hear anything from janet yellen that was new except for the fact that she acknowledged the weakness in housing, and it's really unfortunate at a time when the federal reserve does so much, a lot of investors don't do the same amount of homework they once did, whether it's jeffrey dunlap that we talk about a lot on the housing exchange. housing is taking a downturn and it started last year and when janet yellen mentioned that the curve had a major steepening so to me what's happening is the bullishness based on, yes, we're growing but not enough that's in the long end, actually crept into the short end. you know, two-year deals were down, five-year yields were down and three-year, tens unchanged and 30-year yields were actually housing. >> is the housing market that weak though?

look, i know certainly pending home sales we lost momentum after rates rose last year but rose significantly on a relative basis? >> listen, kelly, if 70 or 80 basis points in the 30-year fixed mortgage kills housing and you're asking me if it's weak, it must be a rhetorical question. >> wait a second. >> is it really dead? i'm not sure that it's dead out there? >> that's not where the bubble s.rick, you know this. the bubble is in europe, let's face it. >> jack, don't put words in my mouth, buddy. >> for me i see the bubble coming out of the fires of italian bonds, the buyers of spanish bonds and greek bonds and if you're a trader on the desk, what are you doing? you are buying u.s. treasury securities and selling that bet, and that's exactly what is happening. when that trade unwinds, and it will, all right, you're going to see asset allocations into equities that makes last year look small. that's one of the problems with what is happening in the bond market right now. it's -- >> there's no problem in the

bond market, jack. bond market is just fine. >> the bond market is keeping people on the sidelines, rick. it's keeping people from maintaining purchasing power parity. >> nobody keeps anybody on the sidelines jack. it's called an investment preference and many people believe that the federal reserve and janet yellen to a large extent, ben bernanke, they don't sound like they are guiding the economy. they sound like they want to control the economy, and i'm sorry, makes me nervous. >> they have got no choice. >> it's interesting -- >> jack, hold on. >> steve, how would you describe the state of the housing market here? >> well, there's a bit of a contradiction. starts have come down but i've been very carefully following construction employment and hours worked and talking to robert melon from jpmorgan and we're not sure why construction employment and hours have remained quite the way they are. starts is a volatile number. >> longtime family, commercial. >> it could be, rick, but either way if that's the case then the

gdp addition would be there. >> no, i think that there's -- >> it's just never caught on. >> if you're both so good at picking bubbles what are you doing on tv? >> they are serving the public, steve. >> serving in the regulatory agencies. >> hey, wait a second, we do it for the same reason that warren buffett does. let me ask you a question. jack, jack. >> one at a time. >> jack, jack. >> go ahead, rick. >> you want three quarters, you think the second quarter and third quarter and fourth quarter could all possibly be 4% or higher, yes or no? >> absolutely. >> and when you see the general public -- >> absolutely. >> 3.5% and 4%. [ speaking all at once ] >> one at a time. >> steve, i was going to ask you, does janet yellen seem to think that we'll see 4% the rest of the year? >> i thought her comments about the current rebound were pretty

strong, that she seemed firm about that. she said spending and production are rebounding, used those terms, and i think it's pretty clear to her what we've all seen and what i've been talking about for several months which is that you have this real obvious step function of march being stronger than february and april being stronger than march which is what you would expect. today's productivity numbers were also very weathery in the following way. >> oh, boy. >> why did employment costs decline? because people did not show up for work but were paid for the hours they worked. she didn't have the output and, therefore, employment costs came up. exactly what you would expect to see in a very weather-related effect in the economy. >> steve, that's -- i wanted to mention the cass index, looking for examples of whether this is weather or not. they are talking about the highest freight shipping volumes since -- >> that's big. >> and utilities at almost 100% utilization. >> i want to go back and be clear about the record.

bill has asked me this question and you have, too, kelly. when will we know if the economy is normal? i don't think the snap back you're getting now is indicative -- i'm sorry, the date, from may is what i meant. you get a strong st. anneback. the economy is not as strong as all of that. when i reported 4%, i said the 4% is not the forecast for the rest of the year. it's a second quarter snapback number. >> i got it. >> let's just be clear, what we do all the time is average the high frequency data and don't jump to extremes. >> but you need 4% every single quarter for the rest of the year to get the annualized figure with a three handle, and let me tell you something. >> you're right. >> that's minority opinion because that's the minority opinion. it's not going to happen. >> wit a second, you live in the same city i do. you saw the great lakes frozen. >> i don't live in the city, jack. >> you saw nothing coming out of pocket. we saw absolutely nothing that could go through the interstates. you were talking about a

complete seizure, all right, of the logistics of this country. that's one of the problems that we had in the first quarter. that's all loosening up. >> jack, in july -- in july what are you going to be talking about, it's too hot? >> we'll be talking about how everything is catching up. >> there's always an excuse. some day everybody is going to be right, but for the moment i see a ten-year note yield under 260. >> right. >> and it doesn't really jive with what's going on in janet yellen sound more like she works for the post office than the biggest central bank on the planet. >>the fed has actually increased quantitative easing relative to issuance. >> i understand that. >> if you look what happens to qe, it's stronger than it was. >> which is even more dire because we have a central bank still in crisis modes years after a crisis and i'm surprise it had only bothers me and it doesn't bother jack who is a market guy. >> kelly and bill, it's clear why you guys are on tv. the rest of us, we need to earn

it every day. i want to be clear about that. >> we knew it would be happen. we set you guys up end to end and still didn't reach a conclusion. thank you all. >> thank you. >> and all three of us barely get up to 8 feet. >> thanks, guys. >> we do have jim grant coming up next hour with a little bit more on his thoughts here about the central bank. >> a quieter more thoughtful kind of guy. i love jim grant. heading up towards the close. up 107 on the dow jones industrial average and nasdaq holding steady down 23 points and technology taking it on the chin. >> the drumbeat on after-the-bell earnings, 20th century fox, tesla and sillo reporting after the bell. what numbers the streets are looking for for these big companies after the break. we'll be right back.

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>> low point today down 59 points and now 20 as we head further, and right after the bell we've got a bunch of high interest corporate names posting their results. again, that's going to happen moments from now and sheila joins us now with the numbers to watch. sheila? >> a lot of the momentum stocks will be coming out after the bell. let's start off with tesla. the electric carmaker expected to earn ten cents a share on revenue of $699 million for its first quarter. investors very interested on the where and when and how they will be building that giga factory and, of course, any updates in the new vehicles. right now tesla is taking a hit, downbout 3%. the street is looking for gains of 94 cents a share of 1.45 billion and taking a hit down more than 3% today. online real estate operators expected to lose 8% in its first quarter on shares of $63 million, taking a big hit with

high-flying names, down about 9% on the session and the street, of course, is looking for 21st century fox to earn 35 cents a share on shares for its third quarter and ahead of the earnings that stock is down a little bit, down about 1% and another very busy day in after hours earnings. a lot of focus on the high flying momentum names in focus today, especially with how the nasdaq has performed throughout the session. guys in. >> absolutely the case, sheila. thank you very much. >> the dow is now up 120 point and the nasdaq down 19. we'll see if that can turn positive by the end of the session, the s&p adding ten points this hour. >> more on the pummeling of the nasdaq. why is that happening. we'll check in with seema mody at the nasdaq market site coming up.

eight minutes left here and the dow is strengthening. setting highs for the session and s&p is up 10 and the nasdaq down 15. as i mentioned earlier, the low of the day down 59 points.

joining me now, seema mody joining me now. >> there you are. what do you make of the divergence in the market today. >> an ugly day for the market. let's start by breaking down where the selling is taking place. >> high valuation names despite the recent selloff. investors that i talked to say these names are simply put and still expensive. that remains a concern. internet also under pressure. yahoo! chinese internet player baidu and this of a alibaba is planning to go public here in the u.s. and that in focus today and speaking of ipos, take a look at some of the high-profile names. king daigital and grub hub and biotech weighing on the nasdaq and whole food the worst performer on the nasdaq 500, same-store sales, outlook disappointing the street and shares are down 19% to 20% on the day. back over to you.

>> welcome back. >> jim cahn and jim shriver, does the selloff in tech make you want to buy more of that, or do you want to go with the stocks and showing relative strength there? >> for us it's always about value. the reason the tech stocks got ahead of themselves in terms of price, they don't have the support on the fundamentals so we're looking for decent value to put the money to work. >> and they don't represent that yet. >> they don't have the numbers, so i would probably not jump into the techs because they are not going down. >> for us it's less about the individual man and more about what has moment why you. we always like our portfolios to have a balance of value. >> what has momentum right now? nothing. >> buy whatever is going up or going down. that's what we see. you saw momentum have a terrible sort of first quarter. first quarter offset our loss momentum. >> so you may be buying some of

these companies. >> okay. >> i want to show that a little further when we come back. we've got the closing count don and a lot of earnings after the bell. keurig, green mountain, tesla to name one of the momentum stocks. i'll get jim to talk about that and a lot more. we'll have the numbers and the market response and all that coming up in just a few minutes. stay tuned. you're watching cnbc first time. but you can't take a trip from lisbon to stockholm if you can't plan and re-charge along the way. the european commission is using cloud to make this possible. creating a single charging and billing network across 28 countries. so drivers can travel as far as they want to go and when they want to go. ♪ ♪fame, makes a man take things over♪

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suddenly directv is up 8 plus percent, popped during the last few second. what's going on. >> got a headline from dow jones reporting that directv is working with advisers including goldman sachs to waive a possible deal with at&t. they are spiking on the news and perhaps an imminent deal is on the way, guys. >> thanks very. we'll keep an eye on that stock and some others that are reporting earnings after the bell tonight and they include tesla motors. everybody is down today. keurig green mountain and 21st century fox, the movie division of what used to be news corp., solar city and zillow. do you like tesla at these levels. >> we don't take individual stocks. we like companies that went up last year and we're looking at the research from people like and we're saying companies that

did well last year are doing well this year. tesla a battery company which is interesting and if you look at the fundamentals of every market, it might make it. >> tesla is about elon momk. i'm guessing you don't buy teslas of the world. one of the things we look for most of the time is strong dividend payment. looking at the value side of the equation and momentum is never enough for us to buy. >> who do you like right now? >> a couple of stocks that we like. >> cars and auto are doing pretty well and the dealers are really coming back and giving a resurgence so we like pensky there. if you have a reasonable valuation. demand which is an equipment manufacturing company. and it's, you know, pretty good earnings and revenue momentum. the price is not overvalued. and we also have an active sports weigh company that we like. >> good to see you both. >> thank you for joining us today. >> going out with a very -- with

two different markets, the dow up 120. that's about the high for the session with the nasdaq down 11, well off its low for the day and stand by. more fireworks. we've got a lot of earnings coming out here and reporting as only cnbc can do it and james grant will be talking about janet yellen owes testimony to the congress today as well. all that and more coming up on the second hour of "closing bell" with kelly evans. i'll see you tomorrow. >> thank you, bill. hi, everybody. welcome to "closing bell." i'm kelly evans. what a day it has been on wall street. it looks like the index are heading into different directions. how much that matters will be the topic of debate and a ton of corporate earnings coming out. a split decision with the dow up 107 points. the nasdaq is shedding 13. it's off about a third of 1% and the s&p moving up about ten and the broad market gauge if you want to look at it. we're about to get an avalanche of crucial earnings due in this hour. special team coverage to get them to you. take a look at this.

phil lebeau watching for tesla's result. morgan brennan, all the 20th century fox. diana olick and dominic chu breaking down the numbers and herb grownberg and bob pisani will help us analyze and crunch through all of it and it's great to see all of you so we'll check in with them as soon as their results hit. let's introduce the panel joining me here. our very own i'man javers and sarah eisen and "fast money"y trader guy adami. wow, it is a party. >> there's so much going on. >> a lot of boxes. >> bear with us. it looks like -- let's just have a quick moment of kind of recapping what happened today. and any, there's been divergence across markets. the fact that dollars aren't really participating and bond yields, what is the theme here? what's an investor to do? >> i think it's a positive sign

for the markets this year. it's slightly negative sign for the real economy, so we've gotten that wrong frankly because we thought the real economy would be growing a lot faster than it is. chairman yellen is basically saying today that she's going to put the market, if necessary and delay interest rates hikes, and that's why i think you see there's a mixture to sell off in the nasdaq. probably related to these momentum names, kelly, but the broader markets will be okay. >> are you worried about -- we went back and asked our team to pull the data, pretty unusual to have this kind of divergence between the dow and the nasdaq and it happened during the tech collapse. should we be worry about the parallels of that and today. >> should you be worried. the last time that we saw earnings only grew by about 1% year over year on the s&p and the s&p was 2009 and the run up to that wasn't too pretty. earnings -- the s&p is saying -- what the nasdaq is saying very simple police is momentum ain't

going to cut it. you better have some revenue and growth and better have some earnings, and if you don't have that you don't have much in this economy. i can tell you that for sure. >> let's check in with a couple of companies and see if they have the revenue and earnings growth. those are out now and bertha, how do they look. >> they beat on the bottom and the top line for the fiscal second quarter earnings coming in with nongap earnings of $1.08 a share versus expectations of 94 cents and on the top line the expectation had been for just over 1 billion that came in at 1.1 billion and the guidance is looking light. forecasting 83 to 88 cents a share. that is a little less than the estimate which is for 88 cents a share on the street, so the stock may take a little hold on that. one of the things though later in the year, they are going to be unveiling both the keurig 2.0. this is the coffee-maker that does both the single cup and a carafe and they may also give

more information about the keurig cold which is the -- the earnings call is coming at 5:00 eastern, kelly. >> that stock is up almost 6%. now it's just barely positive. herb, your thoughts here? >> you know, it's interesting that the guidance is kind of wide. i'm looking at this thing, a look at some of the margins here and you're going to want to also remember that -- from here to there until the 2.0 comes out and until the product with coke comes out. all of these numbers mean whatever they are going to mean. i think it's interesting that they didn't come out today with some big new announcement which they often do which the results and the guidance isn't what people expect. i want to take a closer look at the numbers before i say more. >> just curious. you've been covering whole foods. there's been a lot of question swirling about the consumer and

that's the backdrop, i guess, and the report like this hits and there's still a lot of initiative specific component that we're waiting for. >> and including who foods. the story with whole food is rising competition and at mainstream grocers like kroger and clearly the backdrop, and there is this common thread with all of these consumer staple earnings, and that is there are still challenges in the macro environment with the consumer, not to mention the severe winter weather hurting them. that was mentioned on the whole foods call. there's pockets of strength and starbucks, fence, had a pretty solid quarter. >> we've got more earnings out. do you like green mountain? >> if you're flipping a coin there. since the coca-cola announcement came out that the way to play this if you want to play is soda stream. the knee jerk on soda was to whack the stock down to the low 30s. i think it's 40, 41 now. i'm pretty convinced that some of this is going to make a

forray into pepsi or starbucks, so i'm more in the soda stream camp. >> good point. >> i mentioned those earnings, we've got results now from 20th century fox and let's get out to morgan brennan with the numbers. >> 20th century fox, adjusted earnings of 47 cents per share. that handley beat the 35 cents the street was calling for, and we have 8.22 billion in revenue. again, a beat of -- versus the 7.99 billion that the street was looking for. that represented a 12% increase over last year and just a quick takeaway there. according to the earnings report, the growth in revenue was driven by an increase in the television segment led by the broadcast of the super bowl, also cable network programming segment and led by continued global affiliate revenue growth. back to you. >> all right. morgan, thanks very much. so the super bowl looks like it's paying off handsomely. up 3.7% after hours.

>> i think we look at the media. you look at companies that are driven by a lot of big event. disney we saw earlier in the week driven by the growth in frozen. huge hits like that, huge media events. it can really drive growth. >> and will be at our parent company looking up the olympics for another several go-rounds. several billion dollars. >> and i can't even think that far ahead. >> they will be running the mile. i'll be running the mile, eamon. >> very slowly. >> in my wheelchair. >> what you have to look at is how much of that revenue is coming from cable. because when you're getting a revenue from subscription, a lot better than advertising and that's where the underlying strength for them lies because it certainly isn't in rio 2 going one-on-one with "frozen." >> two-thirds of their business. >> good news for your future, kelly. can i tell you why? >> am i going to be in the next frozen? >> not in the next frozen but live programming is where the revenue is. >> see that's where marissa mayer -- >> are we live now?

>> i thought this was taped? >> we're only delaying you because of we're afraid of what we saw. >> just think about the power of the super bowl, the power of the olympics and the power of live programs and the regional sports network for fox have been the huge drivers. >> all the more interesting today. >> i believe that's true. >> we've got tesla on the move apparently after hours. well, we know the company is -- phil lebeau is following them for us now. what can you tell us? >> this is a beat on the top of the bottom line, kelly in, terms of what the analysts were expecting. the street was expecting revenue to come in at $699 million, but as always with tesla, a couple of numbers you need to look at. production of vehicles and expectation for the full year. in the first quarter they

delivered 7,530 and for the full year they are expected to deliver 35,000 vehicles, including 7,500 in the second quarter, so these numbers are going to get a lot of interest because people are looking at the deliveries saying are you going to go above 30,000, tesla expects to deliver 35,000 for the rest of the year. conference call coming up later this afternoon. kelly, back to you. >> great stuff, phil, thank you. >> those shairs are moving lower. as you dug through the first round results. over 5%. let's bring in john thompson from violet cap fall for his reaction. it's currently shorting the name and joined in by bob pisani for the discussion. john, first to you. so what do you think it is that was the main area of disappointment in this report? >> well, you know, they didn't beat earnings by that much, two sense, and if you annualize

that, that's 50 cents a year for earnings for a stack of 200 bucks. it's way too pricey given where the stock is rating. >> i agree with that. >> look. you're talking about a stock that's making ten cents to the quarter with a $200 stock. the whole basis of the company right now is based on the idea there's going to be a massive rampup in the again3 vehicles. they haven't even announced where the factory is going to be. that's most important. we want to get more important details on that, but there are models now for tesla at $17 or $14. they are all over the place for 2016 and 2017 based on massive increase in sales of these jen-3 vehicles out there. a lot of assumptions and any kind of disappointment on when the vaktry will get built or the amount of vehicles that will come online is going to result in a decline of the stock.

200 with earnings at ten cents, even the future may be $3 or $4. >> phil lebeau joins us now. phil? >> bob mentions the question about the giga fact i and when they actually plan to announce this and start building these batteries at the giga factory and when they will have them up and running. no mention at all in the earnings release regarding the giga factory, but we're fairly certain that this topic will be addressed by elon musk in the afternoon conference call and i know from talking to people in the company, they are close to announcing where the location or two locations may be for the gig ark factory, so that conference call is going to get a lot of attention this afternoon, specifically regarding the question of the giga factory. >> john, what do you think is the earnings power of this stock, the earnings potential for tesla? >> you know, i think the problem is that this isn't a mass market car and i don't think it will ever be. the average person needs to be able to buy a char that can go over 200 miles. i think there's a big problem with this factory that not many people have talked about it.

if you're going to be doubling the production of lithium ion batteries worldwide, what is that going to do to the commodity prices of all the components. you have lithium, cobalt, graphite, a lot of -- you know, i could see the cost of batteries actually going up which would make this clearly not a mass market car, and, unfortunately, the stock has half the market cap of general motors and they need to become a mass market company to -- to justify its valuation, so -- >> do you have any estimates of your own of this company in the near future because i've seen estimates as high as $12 going out three years from now. >> yeah. >> they had a huge rampup and look at the current numbers. they are anticipating an enormous increase in sales of the cars, generally in the general three vehicles. do you have any estimates of your own? >> you know, i don't think they are going to get anywhere close to that. i mean, the problem is, again, the factory, the whole assumption is that they are going to get the battery to go

from 25 or 30 grand down to 10, 15, 20 grand and even then the average person pays 20,000, 25,000 per car. there isn't that big a market for the cars. it's a very niche market. >> does it need to be a mainstream market? look at what a disrupter it is. what is gm and ford doing to even combat this threat? is there they sort of have the problem that if tesla's successful, and they prove that they can get the battery costs down and they prove that people are willing to buy a car that can only go a couple hundred miles, you have eight or ten massive companies world wide that will come after them from a competitive standpoint. >> one company will come after them and that will be bmw. they got the i3 and i8. when the 7 came out, the little wheel had 740 commands and your father didn't know how to do it until he couldn't sell it for a

while. >> phil lebeau, if you're still there. >> i'm here. >> what jumped out to you about this report? >> one last thing, kelly. i mentioned about the giga factory. they do say in the earnings report that they expect to have production up and running in the giga factory built in two locations, so it's unclear in it's two battery production facilities in one location, say in texas or arizona or nevada, wherever that may be. two production facilities going online at the same time and in production by 2017. we should also point out that they are battery constrained for the second quarter. they talk about that in their report and they expect that to improve in the third quarter and fourth quarter so those are likely two topics that will get them attention in the earnings column later today. >> the key to this is the battery, the key to the whole tesla business prospect and an interesting bit of unsolicited advise earlier this week from jeffrey dunlap who says tesla ought to get out of the car business all together and be a battery company. they have innovative technology

there. that could be worth down the road maybe more than the car business. >> another reason to watch for details on the giga factory. shares are down 3.6% and stemming the losses and let's stay with the elon musk theme here and solar city is out with its quarterly report. we want to get out to dominic for the details on this one. dom? >> how about 4.5% upside move on the stocks here and 225,000 shares of val volume in the after hos trade. what we have for solar city is a loss of 82 cents a share. that's worse, again, worse than the average analyst estimate for a loss of 74 cents a share. although revenues do come in better. revenues are reaching $64 million for the quarter, beating the average analyst estimate of $5 about million for the quarter. in the first quarter they said that they added 17,664 customers, if you will. that's the largest quarterly gain in their history. they ended the quarter with over 110,000 paying customers. they remain on track to reach their goal of 1 million customers by the middle of 2018.

they also offer a forecast. the forecast perhaps a little bit lighter than some analysts were expecting here. the forecast for q2 is a loss of 90 cents to $1 per share, and analysts on average were looking for a loss of around 64 cents per share. still, the stock is 6% to the upside reaching its after market highs right now. more details to come, but for now scty shares a nice solid move on the heels of an earnings miss for a revenue beat. back over to you, kelly. >> dom, thanks very much. >> to recap what dom just told us. the company reported bigger than expected first quarter loss. herb greenberg, shares are up 6%. what's going on? >> all anyone cares about here is our numbers like the amount of megawatts deployed and what the company is guiding for in mega watts deployed so the company, you know, came in at the high end of the range. it's going forward. the second quarter they raised the guidance. for 2014. they raised the guidance for

2015. they have really, you know, put a new high bar out there for themselves, so, look, this is a very complicated conscience and i think, you know, you'll want to take a look at the gross margins and see what direction that's going because the industry itself is becoming so incredibly competitive. i mean, here in san diego -- >> look, look at first solar today. remember. one feeds another. i'm just explaining the important part here in this business of leasing out solar panels that you put on the top of your house. this is solar central, and you can see so much competition out here so it's not just one guy. these guys have the most and i think you want to watch going forward. >> it's bob. >> it's not that complicated. the game is to get as many megawatts installed as possible to take advantage of the tax advantages that you've got and down the road is when you wamp up and deal with the revenues

from all of the leasing so you're right. the game is to get as many megawatts installed right now. >> could have, would have, should have, one of the more complicated companies that i've seen. >> we'll leave it there now. thanks so much for helping us run through the numbers on a rash of earnings as we'll recap them for you. we want to be sure we tell you as well. i go adami is coming up on "fast money" at 5:00 p.m. and that starts in 40 minutes time. stock was taking a huge hit on earnings and they will be talking with ceo david walton. you don't want to miss that. >> we'll talk to real estate website zillow reporting quarterly results. we'll talk about that with diana olick and fed critic james grant here to react to janet yellen's testimony before congress today. always has a fascinating take. don't miss that straight ahead

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john thompson and joining the conversation now cole wilcox from long lomborg asset management. why do you think they are trading lower? >> i think they are caught up in the context of the momentum stocks going on right now and really a big part of the growth factor of tesla has been, you know, the early customer development, the big news of the factory. just kind of running out of bullets that the market is going to add in another 20 billion of market cap so we're in where the path of least resistance is to the downside and tesla is caught up in that. the path of least resistance is to the downside and the hangover we see in stock. >> the analyst estimates, according to is capital iq. this year, this fiscal year for

$1.73, for 2015, 2016 almost 5.5. is that reachable? >> well, i think it's dependant upon a number of things. dependant upon what's the ongoing consumer adoption of the model s which is going to do well and it's how fast can i get the model s out into the marketplace which is another big product for them and what kind of delays do they have and also one of the big "x" factors is kind of what's the capx look like, like how much are they spending on all the things that they are doing internally. i saw an interview with elon saying he's asking people to spend money as fast as possible, you know, without wasting it so that will have a big effect on the bottom line. >> where do you think the stock trades? >> three years from now i wouldn't be surprised if it's lower than where it's at right now today as valuations and economic reality of this business catch up with the market cap, so i just think for

a while the stock has been way ahead of itself and just a function where the company is doing well but there's going to be -- there needs to be a mismatch and a -- and coming back to the mean about what are the actual cash flow of this business versus the market capitalization. >> what about the expansion plans. isn't one of the keys to the stock price here china. we know elan musk has made a big splash bringing the models to china. that's where the consumer growth is and where the growth is in the luxury car market. china is no doubt. it's going to be a successful market for them. i'm sure there's a number of poem that will buy the car. the real issue it will sell 35,000 cars and it has a $25 billion market cap. general motors has a $50 billion market cap but it will sell 11 million cars this year. i mean, the math is just so against the stock. i think it's a great car and great technology.

just overvalued. >> nothing more deceptive enough. the second biggest market i understand is norway i'm not sure that we're looking at a global company. i wonder if norway is going to go for the car. >> right. >> not everybody likes peanut butter but if you like peanut but there's a big market. >> a lot of peanut butter eaters in norway. >> to what extent elon musk's mind is blown right now, two companies that had earnings this hour and tesla -- tesla has a beat and the stock goes down. solar city. the stock goes up and i'm getting myself confused. >> how does it work? d. >> two companies two differe directions entirely. >> cole? >> you know, again, it goes back to the environment that we're in right now, the momentum stocks and -- and the disconnect, you know, between kind of the segments and different places. i just think that this is a tough place to be when you're in

these momentum stocks and, you know, and david einhorn, the concept of the cool kid companies that's really starting to affect and hit the market and people are starting to lock at that and i don't think that that means that the market is going to collapse, but there's a divergence between kind of the momo things and value companies and it's going to be interesting to see how that plays out as we go forward. >> anthony, you just provided a pretty good description about why the nasdaq is sort of branching out. these are momentum names that we're talking about, about why they are moving in opposite directions and why the s&p is going to be fine and the nasdaq and teslas and facebooks of the world are not a place to be. >> in a nutshell it is. >> what i was saying in the commercial break is that the economics are not as strong as they should be. that's why mrs. yellen or chairman yellen is backing up on the rate comments. what's going to happen as a result of that is the momentum stock will start to lose momentum because they are not going to be supported by the future earnings and the economic

growth. we've seen this decoupling before. we're in the last stages of a liquidity driven bull market. we're not catching the economic fundamentals that we need to catch the next cycle but certainly have mrs. yellen there. >> you don't think we're there. some would argue that in fact the rotation is happening in a constructive way because generally speaking the s&p is closing higher, near record highs. >> the gdp is not there, kelly. that's the problem. >> revenue growth isn't there either. >> don't see any revenue growth. >> anthony. >> aren't we in a stock picker's market? shouldn't these macro themes? >> i wouldn't say so. that's the interesting thing. others would say we're not because of the fed. it's very hard to short stocks in a market like this. tesla is working right now, but it could zip back up. >> got to go, but, guys, thanks for joining us on this. short working maybe for this one this hour but it's a good share. fed chair janet yellen

predicti predicting the economy will pick up by the end of the year. don't miss it. we'll be right back. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list, which has been absolutely absurd since the big game. with skype, it's just really easy to stay in touch with the kids i work with. right, russell you are good to go! alright, fellas. alright, russ. back to work!

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>> thank you, kelly. nice to be here. >> the fed is tapering and yet bond yields are falling. can you help us make sense of this world? >> i think she can help us make more sense if she would only speak more clearly. >> in what way? >> if she had said the following things we would know exactly where she stands. as it is. we had to read between the lines. if she said, for example, we believe in price control. we believe in market manipulation and we believe in the phillips curve, the phillips curve being the trade-off between employment and inoperation. each of these ideas is widely discredited. each is dearly embraced by the federal reserve, and you can in fact tees out from her remarks that she is a believer in all three of these heresies. it's not chairman yellen, but the entire fed is built around these doctrines. for example, the idea that you must have 2% inflation to be in

the bloom of economic health. from 1962 to 1966 we had growth rates in excess of 4% and 5%. >> you have a national history in other parts of the world that that would be called progress. >> right. >> but isn't that true that that's not the case today because of the presence of debt. >> everything is always different. but the feds -- the fed, it concedes its models are not all they might be. it has never really owned up to using history all to collectively. you know, there was a measured decline in prices year over year between 1954 and '55. the country survived it, right? janet yellen says today that protracted periods of loan interest rates have potentially

and conceivably lead to reaching for yield. >> how would you describe -- by the way, you're the perfect person to ask about this because she kind of hinted at it. how frothy, bubbly, if you will, do you think conditions are in parts of the credit market. what concerns you the most? >> she mentioned the junk bond market and called it the high yield market which isiest year's designation. ain't no high yields. very, very dicy marginal speculative credits are creating five handles and they are priced to yield a 4.something percent and janet yellen did not touch on the moral quandary that low interest rates introduce into our country. grandmothers, grandfathers, savers are figuratively on their hand and knees and rooting around in bushes and between sofa seats and loose change with which to stustain themselves in times of no interest rates.

that seems to be part of the discussion and it out to be front and center. >> and aside from the sort of unhappy ending this spells a couple years down the road. again, you are taking the contrarian takt saying we're getting to get away from these overvalued parts of the market and look at a gazprom, a russia, chinese financials. i feel like you're picking some of the real risky unloved parts here. >> certainly i -- i'm bullish on gazprom which i manfully owned up to at the conference the other day. >> before the rally today? >> the idea is that good things happen to cheap stocks and that this, too, will pass. those are my two investment brands that support this seemingly -- the hopeless idea that russian oil, there's five or six you can buy. all trading at five or six times earning. they pay out 14.5%, that's all of earnings, and as my friend

says that's after theft. >> yes. >> that was alluded to in your conference. last question in light of what's happening today and the collapse in some of these momentum nails. you singled out at the biotech index when you were on this program long before its collapse began. do you think we're at end of this move, or is there more pain to come? >> it's not a collapse. the biotech -- you can't really tell how the biotech stocks are valued. if you look on the website of the exchange-traded fund, the deals, you'll see they are valued 45 times earnings, i think, but if you read the fine print, they have disclosed that they omit any pe multiple over 60. >> and any company that has negative or no earnings, isn't that right? >> yeah, so as we do it in our shop, the biotech index is trading at 2,000 times earnings, even after the bull pac, so i'm not sure if it's over or not, but certainly not every excess

has been wrung from our financial markets. that's part of the charm in our lives in finance. the fed, again, to get back to janet yellen. she must own up in a forthright fashion to the fact that the fed is introducing immense distortions into our markets. she, on behalf of the federal reserve board, owns that problem. and -- and it is -- it is evasive of her not to acknowledge that plainly. >> the challenge has been issued. we'll see if she accepts it in her next public comments. >> great to see you, as always. thanks for coming by. >> zillow speaking of conditions in the u.s. housing market is the latest company to report its quarterly results and diana olick has those numbers for us. >> and it's a big beat. record quarterly revenue of 66.2 million, up 70% over the first quarter of 2013. they had record quarterly all-time traffic. another record nearly 79 million monthly unique users. earnings per share came in a

gain at two cents. when you break it down in the marketplace, you had revenue of 53.4 million. real estate, 46.2. that's a record, and display up 62%. so, again, ceo of zillow, spenc spencer razcopf this was a good start. realgy and it see making won, about tight credit at the market, spring market and even janet yellen today saying they were looking at disappointing result for the spring market. not so, i don't think, for zillow on the first quarter. >> das fating. there was a name down sharply today rebounding by about 2% after hours. we'll have more on this. thank you for now. fed chair janet yellen warning the housing market could hold back the economy this year. what will it take to turn the housing market around? we'll keep housing discussion going. we'll be right back.

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welcome back. here's a look at shares of zillow. they were hammered today. they are rebounding ever so slightly after hours and after reporting an earnings beat. all of this happening while fed chair janet yellen is warning it

could hold back the housing market. let's bring super broker to the rich and bob pisani's and joined by diana olick and the panel. great to see all of you. bob, thoughts here. zillow was down sharply. you heard what diana said about the earnings report and yet not getting much of a lift. >> remember what's been going on in the overall real estate market. my family has been in real estate for most of my life. my wife is still a realtor and has been for 28 years. the biggest problem they are having and my wife, too, the listings. they can't pull in enough property to show people that's around. this has been a major problem throughout the united states. we heard this from realgy earlier on. i think zillow should be given credit. they are getting more agents and that's one of the things that really drives zillow, how many agents they have on the site. >> did you say shortage, bob? >> i'm sorry. >> did i hear you right, you're talking about a shortage?

>> i'm talking about the fact that it's very hard to get listings right now because there's not enough to show people. the inventory levels -- >> sounds like a pretty bullish point, dolly. >> no question. the two big problems are not enough listings, right, so inventory shortages matched with sticker shock, big sticker shock. everybody who goes out to see what's available is saying, wow, really? it went up that much. >> i'm going to give you a third reason. people are very happy with where they are. we do a survey. we saw a 4% rise in being satisfied with where people were living, so guess what, maybe we get a new value system on here where you don't have to go to the latest and greatest. >> nah, nah. >> everyone wants to move on up. >> dolly, you deal with the super rich so they have the luxury of being able to move around. >> everybody wants to move on you. everyone has aspirations, this is an aspirational country.

>> negative equity, people forget this. prices are going up, foreclosures are going down so everybody is back in the black. that's just not true. millions of borrowers are still in negative equity or near negative equity which means they don't have enough to cover the costs of going up. >> there's still a lot in that pipeline. >> tight inventories to get back is not really that bullish. tight inventory is not enough to show people they are not happy. they want to see more, number one, and number two, it tends to drive prices up. that was a factor realgy mentioned in their recent releases. would i like to see more inventory. >> and the only other option would be a situation where there wasn't enough demand to meet the supply of housing. while that's keeping the market from accelerating further it's still better if that demand wasn't there in the first place. >> it's not a demand issue. >> it's not a demand. >> there is demand. there's pent-up demand and not nearly enough supply. >> you have people who can't put their houses on the market.

had more supply on market to meet that demand. a much more robust market. >> blackstone and others have decided to get out of the real estate market and that will loosen up the real estate supply. >> and it's new york and san francisco, all the hot markets where there's not enough inventory. >> i don't think you want to see blackstone selling their homes right now, not enough buyers out there with the credit availability to buy those homes right now. >> kelly, let me give you one bearish indicator here. i bought a house last week and i made every single real estate mistake you made. >> how was the credit process? >> it was brutal. the banks want enormous down payments on the house which as a buyer going through the process and you look at what they want, oh, my goodness, a colossal amount of money and we were looking at what we would get for our how is that we were seg and that's brutally harsh as well and it's very tough out there.

>> unless you're leonardo dicaprio. >> he doesn't have the same problems that i have. >> taxes and a mortgage at the same time. >> need to figure out what they are. >> leonardo dicaprio, got a real divergence at the top and the bottom. the sort of inequality theme playing out because even this week i was reading you saw record prices in single family homes out in the hamptons. >> that's because of the three -- >> diana? >> 40%, all cash buyers, the highest on record. >> and that's not a good thing. >> no. >> thanks, guys. >> i want to know what leo's place is like. is it cool? >> i think the parking spot was $1 million or something like that, it's crazy. coming up on "closing bell," fed chair janet yellen had the market moving with her capitol hill testimony. did her comments impact the cnbc top list? allen wasler has that list for us next and 21st century fox and tesla out with earnings a short while ago. we'll check in on after market

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usaa. we know what it means to serve. welcome back. tesla beat earnings expectations. people are making a beat to cnbc.com and the website's managing editor joins me now to tell us what else is revving up the hot list. allen, a lot going on. >> you know i always tell you ticker lookouts on our website,

tesla is always in the top ten most popular. people are beating up the earnings story trying to find the lost valuation. number two, up there on your panel. sarah eisen busting a big move with her declining dollar piece. 17,000 and counting, and then my number throw, our very own katie little down here on the website went and interviewed the subway show and asked him what's up with the minimum wage and that yoga mat chemical they were putting in bread, not anymore and had some interesting ideas and fun facts. people are eating up the subway story. how do you like that? >> that's great. i'm thinking sarah won't have any more free time after this. >> this is a victory. i keep telling you that keep care about currencies and the dollars. >> true. >> i feel vindicated. >> jack's back. thank you, allen. >> this week saw the return of kiefer sutherland and they didn't need the return to save the day. next up, we'll recap fox's big

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welcome back. another wild hour. sheila rapping it all up for us.

>> kelly, it has been a busy one. let's start it off with tesla, earnings at 12 cents a share. 2 cents better than analyst's forecasts. the plans for a new battery track are on track. keurig, expanding its partnership to make other smuker brands. that stock up more than 6%. 21st century fox, it was helped by super bowl advertising and cable network growth. in the after hours, stock is higher up about 4%. and let's end on sprouts, raised it's full year guidance. nice bump up about 6%. this was an interesting one. it fell double digits in sympathy with whole foods.

it's going to be interesting to see how it trades in the morning. >> that whole foods story, a tough one. we want to bring in bob. also keeping an eye on these results. what jumps out to you? >> i have been talking with some traders about tesla. we're talking about a company that's $200 with 10, 12, cent earnings right here. some trader comments saying they think the issue is the gross margins. another trader said the consensus on q3 deliveries were fairly high. that number that they gave is a little bit lower. the number they gave is lower than the actual estimates. they have got to talk about where they going to put the factory. they didn't say anything at all in the press release and anything at all about that next gen three cars they're talking

about. >> i'm still thinking about that $320 price target morgan put on them. different story today. thank you, good to see you and appreciate your time as well. today ahead, our final thoughts and be sure to tune in tomorrow when investor/author will join us to tell us why it's time to break up berkshire hathaway. we'll be right back. at&t can help simplify how you manage it. so you can focus on what you love most. when everyone and everything works together, business just sings.

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welcome back. it's been a rowdy hour. a lot of information to process. we barely had time to talk about some stuff happening before the market closed. then we got hit with corporate earnings. final thought from the panel. sara taking a victory lap on our dollar piece. >> i'm excited about that. tomorrow though will be ecp. >> is anything going to happen? >> nothing happening but they say something thoshould be happening. but serious risk in that country and inflation too low. it's been amazing to see the appetite for spanish and italian. >> let's talk about the deflati deflation. if the currency deflates, it

doubles up your debt exposure. you just doubled your debt. be careful. >> you're saying that's happening in this country? >> i don't see it happening because of janet yellen. >> what about you. >> i don't like large cap growth as i do large cap cavalue. with the nasdaq going night-night is a large cap value is where the profit will be as the economy continues. >> the blue chips are looking good in this market. >> i want to talk to dolly about leonardo dicaprio's place. i got a house i can sell him in maryland. i want to know what's in that place. it sounds cool. >> as we look at tomorrow and the rest of the week, there are geopolitical concerns lingering about ukraine and russia. >> putin said he's pulling his

troops back today. if you can take that for what it is, it seems good. >> guys, thank you for being here. i know there was a lot to work through. we'll continue with "fast money" in just a few moments with melissa lee. you guys have a lot happening as well. >> we do. a lot of earnings. two of the biggest moves today, fire eye which was down 22% and live nation which was up 10%. we have got both of those ceos on in an exclusive. >> conference call for zillow all starting right now. tesla, later this hour. just one more momentum name to sell off today, twitter stock taking a hit for the second day in a row today. groupon sinking and fire eye plummeting. it's not just internet momentum names feeling the pain. our traders are