tech, is a former head of purdue. nice connection there. a special "street signs," mandy will be back from a much warmer location. she'll be live from san diego. lots of big interviews and interesting guests. >> otherwise known as san diego. in the meantime i will see you tonight on "fast" at five. full coverage of facebook earnings. >> i can't wait. >> all right. "the closing bell" is up next. thank you guys welcome to "the closing bell," everybody. i'm kelly evans down here at the new york stock exchange with my pipe and my french coat and my sherlock holmes hat trying to figure out what's going on with this market. >> i'm sitting here with a rubic cube taking to make it make sense. we had two reports that had an impact. clearly the fed's statement had an impact. we saw the price of oil move lower. we saw yields on 30-year go to

all-time low territory. earlier in the day we had inventory numbers on crude oil -- >> look there's the 40-year. >> i feel like bringing rick santelli in this moment but we'll bring in in a second. there's crude oil. inventories were higher than expected for crude oil, so it pushed prices lower. we're almost at a six-year low. >> they keep pumping oil. an hour from now another huge earnings report. it's from facebook this time. the social networking giant trading higher ahead of the closely watched numbers. we'll get them to you first with top analysis from the street. >> and he's a billionaire who flies on private jets. he has a huge home and he's made headlines when he do this last week. america's lifestyle expectations are far too high and need to be adjusted so we have less things and a smaller, better existence. we're talking about jeff greene. he'll be here exclusively to

clarify those remarks. you certainly don't want to miss that coming up. >> a lot to watch out for. and the markets right now, the dow jones industrial average eking out a small gain of four points. remember, it's outperformance relative to the s&p has a lot to do with boeing beating on earnings. the broad market index is down. we're in the red. it's off a quarter of 1%. obviously a lot better than the trading activity we saw in greece this morning. that was the concern before we turned our attention to developments here. and nasdaq up 0.2% helped by strong performance from apple. >> i said i'm sure apple shareholders would love it if the company could report earnings every single day. >> just how many phones they made every day. >> let's talk about it. our "the closing bell" exchange. we have d.r. barton from money map press, jack bouroudjian beth is with us on the big board

and we have liesman and santelli joining us as well. steve liesman, the fed statement, no surprises. market kind of responded in an odd way. what did you make of what they had to say today? >> let me set the table a little bit. there's a big debate going on among economists and you can see it in the market and i want to hear from rick santelli about why it is they're rallying in the bond market but there's a big debate about what was in the statement. three changes, they upgraded the economy from expanding at a moderate pace to expanding to a solid pace. two is they said inflation is falling further away from the goal largely because of energy prices. let me stop there. what you have is they're getting closer on their employment mandate, they're getting further on their inflation mandate. the third thing is they added international developments to one of the things -- >> yes, that's it! >> wait a minute. >> let me finish up. i made a chart, how did markets react? what is the conflict going on? the euro it sold off.

that's a hawkish sign. bonds, they rallied, that's a dovish signed. stocks sold off, that's hawkish and the fed funds which is a subset of bonds, that's dovish. a real conflict going on. something for everyone something for the doves, something for the hawks, and ultimately what i'm hearing is people saying june is back on the table because of that solid pace. >> hang on a sec. before we get to rick through the lens here as i see it steve, there's only one way to interpret the market action and that is dovish. the dollar is down -- >> i don't know. >> you've got bonds down crude oil got whacked. rick here is what -- >> why would crude owl getil get whacked. >> the market interprets this as indicating that they may be slower here to move. is that the only possible conclusion from the market's reaction here? >> i came up with something different and steve nailed it on

the last one. i called around to various asset managers and some of my sources. i never had such a unanimous answer. why? and here is what they said i'll read it because maybe not everybody saw the statement. this assessment will take into account a wide range of information, including measures of the labor market indications of inflation pressures and inflation expectations and here it is. and readings on financial and international develops. those last two words for traders are synonymous with it's not looking good. there's a light coming in the tunnel and it may be a big train. >> that's my point. that's my point, rick. it doesn't matter what the reason is. the net result is what? they think the fed is going to be more cautious than they did before the statement, correct? >> no, no no no! but it really isn't about the fed. it's the relative value trade on steroids. what traders are taking into account is that if europe continues to deteriorate and the relative value trade is on it is going to draw these yields down and they're getting in front of that trade.

>> but why do stocks sell off in that -- underneath those conditions? that is a hawkish sign to me kelly. >> because there isn't any santa claus in the statement for them. that's why. they've had the lazy money trade for years now. now they have to work a bit harder. >> stocks actually initially went up after the fed statement came out but then went down. we had a real stutter step there going on. beth ann you know just yesterday we were talking about whether the economy was actually slowing down after that weaker than expected durable goods report. we had the news from caterpillar that the strong dollar and weak oil was slowing them down among other companies at the same time. now we get this fed report that says the economy is growing at a solid pace. make some sense of this for us please. >> well we at sapp have&p thinking the u.s. economy has been moving on at a nice pace. the jobs number close to 250,000 monthly job gains. you're seeing some home sales

that were pretty nice as well. while we're seeing a couple hiccups, we're moving ahead at a steady pace. >> do you agree with the word solid then? >> i was pretty impressed by that statement, but i did think that we're looking -- look at the two last quarters. they were pretty healthy readings. we're expecting something around 3% for the fourth quarter and around 3.3% for 2015. >> d.r. what's your reaction here? how do you trade this fed statement? >> well, i think rick really nailed it when he talked about the international goings on. let's face it the bond prices have just powered through the shorts like they were marshawn lynch in beast mode. we've really got a lot of money saying the u.s. is the place to be and they're going to keep coming there until yields prove them otherwise. >> but i don't understand what you're saying and what everybody's point is about international markets. what is the point about what the fed is going to do here? >> well -- >> go ahead. >> it's not so much the point about what the fed is saying

they're going to do it's that they're saying for the first time we're worried about international markets so money -- >> right. isn't that a dovish development? >> yes. >> keep in mind -- i don't know if you can go to me but keep in mind that while the ecb made this pretty big move in terms of quantitative easing and it's going to put more upward pressure on the dollars which will hurt exports, but another thing the fed could take is that this also helps stabilized eurozone, something they want to see and that to me means they could keep going along with moving interest rates higher. >> jack the fed statement would seem to play into your arguments, but the market response doesn't. what do you make of this? >> well give it a couple days, bill. i think right now the market is doing a lot of digesting but i could not disagree with what santelli was saying any more. right now what these central bankers are more concerned about than anything else are the disinflationary pressures out there. when our federal reserve is talking about the pressures outside or off of our shores

that is what they're referring to, the fact we're not in a vacuum. but the bottom line is this it seems like everybody becomes cassandra the soothsayer of doom when we come off a couple points. we're only three or four points off of our all-time highs. remember that. >> so then you agree with me, jack. you don't disagree. >> no. there's a disconnect. everybody that is in your camp has been wrong, rick. they have been out of the stock market. they have been buying bonds -- >> jack -- >> one at a time. >> the best rally in the stock market that we have witnessed in our lifetimes. not only that -- come on medication. you're talking about operating margins. >> listen, i don't know what the heck you're talking about -- >> talking about energy -- >> hang on, guys. >> you can't get away from globalization. >> go ahead, rick. >> globalization is what it's about. and there was a time where everybody was talking about we only have a small percentage of our economy on exports. it's not what it's about. it's about earnings in the s&p, multinationals. it's a global economy.

>> and earnings are at all-time highs rick. >> steve -- hang on everybody. hang on. if the point about this being an international concern for the fed ultimately do we have to acknowledge that they're effectively acting as the world's central bank not just americas? >> they've been. they have been -- >> hang on. >> we have been the leader. >> hang on guys. >> i think what's going on here is i think what the fed is saying is there's a lot of stuff going on everyoverseas that has the chance of impacting the u.s. economy. >> bingo. >> this is very important. when something rises to the level to come into the statement, and not only into the statement but in a way that it become one of the metrics or gauges upon which the fed will change interest rates, it becomes a very big deal. now what we're going to do when we talk about that metric of international developments is specifically watch the european central bank and it's new quantitative easing program. is it working? is it not working?

remember, the fed is neutral about international developments, only that it's watching it. the story is this if eqe as i call it because it's a lot faster than the other stuff, if eqe works, raises the inflation level, raises growth gets europe back on track, that could mean a faster fed. >> but oil prices are dropping. >> that's true but what i think is something that needs to be taken away kelly, is the fed i think was a little unclear. the fact we're having a debate here over whether or not there's a hawkish or dovish statement, i don't know that this redirects back to june or gives fodder for the doves and it's further from june. i think the fed needs to clarify here. >> let's close this out because we're running out of time to beth ann. what do you think this means for fed policy going down the road. we're all wondering when this is going to happen. >> we've been saying since last year, since march of last year they were going to raise rates in the second quarter of this year. we kind ever narrowed it down to june and we think they're still on track. we say they're going to move --

this might spook all the people listening. we think they could reach 1.25% by year end. there's a lot of things like we talked about the eurozone issues as well could slow them down but we think they're heading along that path. >> jack before we go is this a signal to everybody who might have a mortgage are be trying to make a decision about interest rates that it might be going lower. all your bullish talk would not point to this outcome. >> what i see is this big disconnect that rick and i always seem to argue about. you know one of these days we're going to see this bubble in the bonds pop and one of the problems that i have is that there are too many people that are looking at that bond market right now and, unfortunately for me, i see all risk and no return. and worse than this, they're missing out on an amazing -- >> best act in class of 2014. >> that's what jack bogle told us. it's a theme we're going to follow. thank you, everybody. >> thank you. >> lively as we knew it would

be. always is after a fed statement of some kind. >> boy, oh boy. just about 45 minutes to go into the close here. this tug of war, keeping the dow roughly neutral. it's off 31 points. the s&p a little weaker. giving up 0.4%. >> the other big story of the day, apple skyrocketing thanks to that blowout earnings report you heard right here on "the closing bell" last night. apple selling nearly 75 million new iphones last quarter, but is the tech giant becoming too dependent on that one product for its profits? we're going to hash it out with some of the pros coming up next. also ahead, blackrock's head of fixed income rick rieder will speak about us exclusively. we want to hear what he has to say about these moves on the back of the fed announcement and when they see the fed pulling the trigger on an interest rate hike.

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markets still trying to sort things out after the fed's statement. the dow was higher now it's lower, down 65 points. we're looking at the ten sectors of the standard & poor's 500

index. only one is positive. thank you apple. and energy is lower as wti crude hits a five six-year low today. so it's down 3.33%. >> kate rogers is covering some big individual movers. >> we'll kick it off with the energy sector moving lower as crude oil fell to its lowest level since march 2009. now, boeing hitting a new 52-week high after the jetmaker posted better than expected quarterly results. investors shrugging off its light guidance. it's trading up 6%. hanes brand gaining ground after the company raised its quarterly dividend to 40 cents a share and announced a four for one stock split. and we end with apple, of course gaining ground today after posting its biggest quarterly profit in corporate

history. boosted by record iphone sales during the holiday season. trading up over 6.5%. >> thank you very much. apple investors obviously loving the record earnings that came out last night for the last quarter but it has many wondering if the company now has relied too much on one product, namely the iphone. we saw a slowdown in sales for macs and ipads and other items but the iphone was the big blowout this time around. >> joining us for more on whether this can continue edmund lee with michael. welcome to you both. ed, you know it's hard to pick an issue with apple after the quarter they just had, and it sounds like the products they may launch including the watch, will drive more people into the iphone ecosystem. is there a risk of putting too many eggs in this one basket? >> it seems like they could do no wrong. i know people have talked about is this a one-trick pony company now that iphones are a big, huge

majority of their sales. i think the bigger read is the iphone is really a trojan horse product. it just gets people in other apple products whether it's ipads or laptops or desktops. the apple watch. that's their lead in product, their anchor product, and in a way it's not really a stand alone. if you start to like it it gets you into their other lines. and i think longer term it's definitely a positive for them. it's not just that one item thing. >> i was going to say you have to put money to work there. this does concern you, doesn't it? >> absolutely. and it was clearly incredible quarter and incredible -- we knew there was pent up demand for the large screen phone, large screen iphone and this quarter was clearly amazing, but at the same time the company is now relying 70% of the revenues is relying on the iphone and actually the ipad. the ipad sales are slowing and

they went from 20% a year ago now to about 12%. the mac sales, mac sales actually getting benefit from the halo effect probably from the iphone and to increase but relative to this incredible performance from the iphone they are down below 10%. so the company is really relying on a single product going forward and one would expect that for the next couple quarters the iphone sales is going to continue to accelerate and might be even 75% or 80% of their sales. it is becoming a problem and we've been waiting for this next great thing to come out, and so -- >> why is that a problem? michael, i don't understand why that's a problem at the moment. >> sure. well, it is not a problem at the moment, and it is not a problem if you're looking at the past. but if you're a long-term investor and looking at three to five years out, then it is becoming a problem. each product goes through a cycle. we have seen the ipad sales peak and lower.

we have seen ipod sales peak and go lower. eventually it will happen to iphone, too. >> ed are consumers abandoning the ipad for the larger iphone? >> you have to definitely think that there's some cannibalization going on and, you know, i think the idea that there's -- they're relying too much on this one product. the other thing to note is they're still forging to new markets. china was huge for iphone. >> they're number one now. >> exactly. and a lot of the signups, a lot of the new customers are new to apple. so i think they're getting introduced to the company, to like their product line this way, and i think it's going to take another iteration or two before you start seeing the larger halo effect of those xhu customers coming in and saying i like apple iphone i want to get their laptop some of the other products. it will come in cycles, that's true, but this is the first for a lot of customers, especially abroad especially in china, and i think longer term it will be a positive for sure. >> is it also michael, better for you as a shareholder than if they were putting money into other kinds of products that

frankly may not pan out? why not double down when you realize you have a gold mine? >> well of course they should and i think they are doing it and i expect for the next two, three, or four quarters iphone to continue this way. but at the same time when you are making all this incredible money, you should be investing in other products and looking where are you going to go next and i think we have the apple watch coming out in march or april. even with the expectations of 30 million watches sold within the first year that is only a few billion dollars a quarter. so that doesn't move the needle. so they should be investing and they are but we haven't seen anything that we can point to. they're investing in the future and to products that can eventually replace the revenue stream where eventually the iphone slows down. but so far it's really hard to complain. >> ed, i realize i'm not their demographic but so far for me the iwatch is not moving my needle. what about you? >> no i think it's going to be frankly a bit of a you have to

sell but the truth of it is a lot of their new product launches whether it was the first iphone the first ipod for that matter didn't do so great at least out of the gate. it took a little while. took by the second generation really before it became a mass product. so even if it doesn't become a blockbuster out of the gate it doesn't mean they're going to give up. it doesn't mean they're not going to do a second version of it fairly soon probably to entice a broader market. that's always the long play. >> won't be one and done. that's for sure. michael, ed always good to see you. thank you for joining us today. we have a news alert on e cigarettes. jane wells in california with that story. jane? >> hey bill. more scrutiny for these popular products. it's $1.5 billion market in the u.s., but now health officials in california undoubtedly it's largest market in the u.s. are warning that they need to be regulated like regular tobacco due to health risks, especially to children. a report released by the

california department of public health according to the associated press says e cigarettes emit cancer-causing chemicals and get users hooked on nicotine. now, the manufacturerings have generally said e cigarettes are safer than regular. there have been new reports of a lab test suggesting that e cigarettes at high temperatures may release more formaldehyde than regular cigarettes. the fda is still working through what it wants to do about these, but this is a big business and i don't know about where you live but out here there are vaping rooms everywra.here. a lot of people use these. >> they're worried about the health risk to children? of course there are going to be health risks there. are they thinking about marketing to children for pete's sake? >> i think they're thinking that kids may see this as a safe alternative to smoking. >> you do have to wonder jane as well about some of the health concerns involved with the same kinds of outcomes from marijuana. >> you do and, of course a lot of people vape marijuana as well

thinking that is safer and with marijuana you can go with edibles. but they are saying that they are concerned in california that this has cancer-causing elements about it and needs to be regulated just like regular cigarettes. the fda still figuring that one out. other states have moved in this direction as well but california, of course, the 800-pound smoking gorilla in the room. >> yes, it is. as usual. >> thank you very much jane. see if there's any movement in some of the companies with bigger exposure to e cigarettes. >> down 75 points right now with 35 minutes left in the trading session as the market continues to drift lower here today after the fed's announcement and the price of oil moving lower. so energy among the biggest decliners today. the s&p is down 14. the nasdaq poi earlysterly boyfriend positive early on and now down.

>> facebook and qualcomm are face and center. we'll have the numbers coming up. plus blackrock's rick rieder is standing on the floor of the exchange. he'll talk to us exclusively about how he's putting his clients $700 billion assets to work. and we'll talk fed policy central bank easing and what he's most concerned about in our economy coming up.

we got a lot of things

moving here. >> welcome back. here is a look at what's happening first of all with the new zealand dollar. often referred to as a commodity currency. tends to rise when commodity prices are doing better. we have had a spate of central banks in the last couple weeks with surprise rate cuts concerns in commentary about the strength of their currencies as the u.s. dollar and others, folk, the euro have moved around. today the new zealand dollar is taking a hit against our dollar. off by more than 1%. there are some headlines suggesting that perhaps they're trying to talk about their concern about the high level of the new zealand dollar. the impact is here but the real question is whether the central bank will follow suit with some of the other and be more proactive in cutting rates. >> a positive report from the fed although they acknowledged concerns about the international economies out there, but the dow is down 94 points just off a low that was set a moment ago. we were down 105 on the industrial average. the s&p is down 15. the nasdaq has moved lower even

after those blowout earnings from apple. let me see 309-year. there it is. 2.29%, the yield is at a record, record low by seven basis points. 2.29%. as the debate continues about when the fed will hike rates. yesterday on "the closing bell" morgan stanley's top economist said it wouldn't happen until march of 2016. let's listen to that again. >> we don't bottom until october. so that's going to have to lead the fed to a change in rhetoric. they're going to have to move away from that promise to raise rates around midyear because it's just no longer credible. >> reaction to all of this with blackrock's fixed income chief rick rieder. i don't know where to start. can you address the move in the new zealand dollar and whether this should have any bearing on why our market is off 100

points. >> you think about what happened to the swiss franc, think about what's happening in australia. central banks have to respond to an extraordinary set of circumstances. when you think about $60 billion a month, it's extraordinary. you're going to force rates down and much of the reaction you're seeing today in the u.s. is for that same dynamic. you're forcing rates down because of extraordinary policy. >> our fed said today they say for first time they used the word solid. they see solid growth in our economy. all things being equal, interest rates should have gone up on that expecting the fed to raise rates at some point. they've gone down. that's a response to what's going on overseas because they express concern about what's going on overseas? >> i think the report today was pretty balanced. as you said they said solid growth, strong payroll and so that was pretty significant and it basically gave them a flexibility if they're going to go middle part of the year. they certainly have opened up the window to that.

they downgraded the inflation forecast but they also brought in the international. so we've had a number of debates about what does that mean. and you think about what's happening in the global sphere of bunds and jgbs and everything getting forced down you have a dynamic that's pretty balanced. i think flows matter more than anything else and in today's environment, the flows are there's not enough bonds relative to the demand for income in the world today and where policy is going. >> this is just so fascinating. i mean i hope people can appreciate how unique a period this is right now. to basically have a situation where europe announces quantitative easing, a massive program, right? and its bonds continue moving lower and then that may be dragging the u.s. bonds lower. then our fed is out there talking, getting rid of the considerable time language introducing the patient language. our bonds keep rallying. was any of this supposed to happen? >> when you think about what is fair value. ten year, depending how you measure it fair value is closer

to 3%. maybe 2.75%. but then you put that in context. what's fair value for italy, fair value for italy is 200 to 300 basis points cheaper than where they are today and it's just because you're forcing this incredible policy and a tremendous amount of bonds coming out of the marketplace in a time where people don't factor in enough. the world is delevering. you're not producing enough fixed income and that policy is taking so many bonds out of the marketplace that you continue to press yields down and so we move to these extraordinary conditions. >> so should all these central banks buying bonds stop doing it altogether and just move interest rates into negative territory if that's what they're trying to achieve but the european central bank is doing that as well. >> part of what the fed i think has a window to do is literally to start moving because you have -- if you think about what's more important to the u.s. economy today is long end interest rates. you've got the most extraordinary window in history to start to evolve your policy because everywhere else in the world is zero and the back end

of the curve is not going to move much. today the back end is what's really moving. it will stay down which is important for mortgages -- >> why are you arguing that gives the fed room? doesn't that indicate they have no room. that somehow the longer term expectations and yends areields are dropping so quickly they can't raise rates? >> no i think they've got a window to do it and i think the long end is not going to move that much and you have to start normalizing policy. you think about we could -- by the time the next fed meeting comes, could you have an unemployment rate closer to 5.4%. we're approaching full employment and the fed's mandate is full employment and price stability. so you think about that. full employment but we're in a low inflation world which we can -- >> but that full employment number is going to have to change. that's going to have to be lower, right? don't you think? >> i think the fed has a window that they can start moving in the middle part of the year and by the way, a 0% funds rate on

averaged we talked about this the last time we were on. on average when you have seen this kind of payroll growth is closer to 7%. zero is the wrong number. >> do we just throw out the long end? it has no bearing? >> part of why we like owning long-end interest rates is they give you a balanced portfolio. it gives you a balance portfolio and we think that stays fairly insulated. >> the fed continually has said they think the lower inflation and the lower oil prices is only temporary. and maybe by the middle of this year we'll start to see them go up again at this point. do you agree with that and are we headed for a deflationary period as a result? >> i think there's something that's extraordinarily important. the reason why you have a supply glut that's in oil is because the technology changed the supply paradigm. technology is changing the world today and price transparency

logistics, inventory management. look at the company that is have done well in earnings. all of these are creating a disinflationary impulse that you can grow without the same level of inflation. meaning we could be at full employment and price stability but price stability at a lower trajectory. >> what the fed wanted people to do was move into risk assets right? bought stocks, which we did. now we're not. dow is down 141 points even as they're buying these bonds. does that make sense? >> i think you have to put it in context. >> i know one day is not a trend. but you know what i mean. >> today's price action across dollar and rates is curious or interesting in a number of regards. if you think about it i think by the end of this year the equity market will be higher and i think you will have achieved where the rates are and where companies are able to borrow money and the ability for m&a or cap ex or equity repurchase is so extraordinary. the benefit accrues to equity

holders. when you step back and look where we're going to be in six months, it has to promote a higher equity market. >> thank you for being here. >> perfect day for you to be here. >> thanks so much. >> we have just under half an hour to go on this market day where as bill mentioned, stocks near the lows of the session. the dow is off 130 points. the s&p is giving up 19. the nasdaq is down 29 and the vix up a couple points. >> show us the numbers. facebook and qualcomm will be posting their earnings after the bell. we'll show you what the street is expecting and get you the info the moment it hits the tape. break it all down with our full team of experts coming up. up next why bitcoin may be here to stay. two pros tell us why they think the virtual currency will change the world for the better.

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the sell-off continues. the dow down 164 points, and this has just been happening in

the last 15 20 minutes. art cashin was telling us he's not seeing a lot of intense selling on individual stocks but this cascade lower following the fed's announcement at 2:00 eastern time. we're down to the 17,219 level. all 30 xon components 3 of them are positive. boeing caterpillar, and 3m. >> we should take a look at gold as well seeing how that's responding in the aftermath of the fed's latest meeting. the currency better known as bitcoin is back with a buzz led by the winklevoss twins. >> but can the currency carry its weight and survive in the marketplace. let's bring in two guys from "the wall street journal" who somehow came together to write this book. paul and michael have written "the age of the cryptocurrency."

good too see you both. >> welcome. >> kelly evans, how are you? >> yes, everybody come back together from "the wall street journal." >> yes. >> it's been a novelty. it's made big headlines around the world, but it's been dismissed as merely a temporary situation, but you guys seem to be suggesting we're in this for the long haul with some kind of a cryptocurrency. >> the way we came together is we sit eight feet away from each other and we'd write about this and talk about it all day and we were doubters too, when we first started. first time someone suggested we should write about, it i thought, no, i thought the same thing. it's a scam, a flash in the pan. >> i really expected you to be a hater, paul. >> you would, because i'm such a luddite, right? >> no it seems like the volatility in the price of bitcoin -- it's collapsed this year. why do you think long term it will be viable. >> the more we wrote about it

and the more we talked about it the more we started pondering it and mulling it. you really do start to see it, there is something here. that this is an extremely innovative technology and that's the point we're trying to make in the book. >> but will it be bitcoin? the winklevoss twins are saying this could be trillions of dollars. >> it's established. it's first mover. there's a lot of investment in mining. but it's an open source which means anybody can look at it. there's all sorts of coins out there and there's a lot of floors. itself volatile. it's got security concerns. and there's also, you know some functional issues to do with that mining process. so one could imagine, i certainly wouldn't discount the idea that somebody comes along and builds one that's friendlier to regulators. who knows. the point is the technology, the underlying de -- >> we have to go in a second. don't you agree this was the make or break moment of bitcoin.

the fact it hasn't come out with a sterling reputation. >> i don't think the main use case is going to be currencies. the idea it will dislodge the dollar is a pipe dream. paul might think differently, we don't always agree on everything, but the most important thing to me is how it will function as part of the plumbing the background financial system, a part of this sort of overall infrastructure. >> the way i think of it is this is -- we're in horse and buggy days and you just saw the first horseless carriage drive by. >> same with the apple watch. they don't have to get the first one right. >> we're just at the beginning. it's only six years and we don't know what's going to come. they didn't know in 1887 they were going to have cars and snow blowers. the people who dismiss it i think it's a knee-jerk thing, and you really should just buy the book and think about it a little more. >> your support for it makes me want to find out more. >> got my attention.

it's called "the age of cryptocurrency", and i still don't know how much i'm going to pay in bitcoins for this thing. >> it's not labeled on the book. >> i got the converter on my app. >> very good. thanks guys. this market keeps heading lower. mary thompson, what is the mood on the floor? >> no support. you were talking about for cryptocurrencies. no support for the markets. certainly the market's reaction was one of confusion. the markets or the dow now at its lowest levels of the day, down 184 points but i want to point out, of course what we've also seen is the decline in the yield on the ten-year and art cashin was pointing out earlier that if we drop below 1.78%, probably the next level of support there could be 1.61%. two things in the fed statement, of course. everyone has been talking about basically the acknowledgment of the international issues but also you have to focus on inflation falling below the long-term objective and what we

saw, of course was a response in the oil markets with oil prices declining and in turn energy stocks dragging the markets lower as well. take a look at the s&p energy sector. weakest performer, big sell-off after the fed statement followed by materials as well. these groups have been under a little bit of pressure earlier, but they fell too. and, of course financials because this is a group that's been waiting for interest rates basically to increase, something that would benefit them but the financials are under pressure too. what's interesting to note even with the decline that we're seeing in treasury yields, we aren't seeing any corresponding upticks in utilities. it's pretty much a broad-based decline. as we head into the close, 15 minutes left the dow off its worst levels of the day but only by about six or seven points. so again, that fed statement, so many people were expecting it to be a nonevent and certainly that was not the case. bill, back to you. >> thanks, mary. see you in a little bit. 14 minutes left in the trading session, down 180 points. going lower but bond prices are

going the other direction. we're setting an all-time low for the 30-year bond yields right now at 2.29%. >> and we would easily be down 200 points on the dow if it weren't for boeing. strong earnings helping that stock outperform. and that's a look at the dow 30 heat map as we wind down the day. >> we are minutes away from market-moving earnings we would think from facebook and qualcomm. kate rogers will tell you what you need to know about those numbers coming up in just a moment. stay tuned.

welcome back. the earnings avalanche does continue in a few moments. >> and with the dow down 160, art cashin was telling us we have $800 million in stock to sell going into the close. i think we're already starting to see some of that happen right now. kate rogers tell us about some of the earnings we have coming on deck. >> that's right, bill. there's a whole slew. we'll begin with facebook. the street looking for a fourth quarter gain of 49 cents a share. traders will be looking very closely at the growth of its online video ads. ahead of the news facebook trading up 1%. then qualcomm. expectations for for $1.25 on

sales of $6.94 billion. the street will look to see if it's resolved its legal problems in china. qualcomm currently trading down over half a percent p.m. back over to you guys. >> all right, kate rogers. thank you with an eye on those big reports coming up in just about ten minutes time with the dow up 165. the s&p having a you have to session off 25 the vix is higher and the nasdaq is off 37. we'll have more on the markets coming up -- >> right after this. >> stay tuned.

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all right. here we go. $800 million to sell art cashin told us in the market now. we're off the lows with the dow down 159. the nasdaq getting clobbered now down 36 with six minutes left in the trading session. >> joining us david marcus with ben willis. welcome to you both. david, we couldn't have asked for a better setup after the beat from apple last night if you wanted to talk about positive sentiment after yesterday's decline. why can't we seem to get a rebound here? is it because of the fed? >> i think so. i think ultimately investors are getting too caught up in the short-term announcement. i think it's just a great chance to buy things that have been down today.

i'm a buyer. >> you were humming a tune as you walked past a little while ago. i'm guessing you were on the right side of the market. >> be patient and be brave. we're in a great inverse pattern to what's going on in the bond market. you saw a huge short covering right after -- >> in the bond market. >> in the bond market that led us to trade below yesterday's lows and unless we close above them tomorrow could look pretty much the same. >> dare i ask why? why? why is this the backdrop in the rates market? >> i think they're so much a part of the market loaded to the short side on the bond side but you have to frame this entire situation as the great unwind. the united states of america is now having to defend their currency that's grown far too strong compared to the rest of the world. with that being said it's a currency war nonetheless. so we were talking -- >> do you think this was the fed trying to do its part? >> i think it was the fed again trying to temper and the fact they said solid still you had an

initial reaction as particularly in the treasury markets to the upside -- >> and the dollar is still up. >> but the rest of the verbiage suggests they can hold off raise raising rates. >> does this become a buying opportunity for stocks though? >> i think it's a buying student for stocks here -- opportunity for stocks in the u.s. and outside the u.s. >> where outside the u.s.? >> europe. weak energy creating lower cost for industrial businesses. the euro has collapsed. now you have a huge qe prime minister program. that's the transformation europe has been waiting for. europe number one, u.s. number two. >> thank you, gentlemen. >> i'm glad we don't have to make -- invest other people's money like you do after a day like today. thank you, guys. coming up, we'll get the closing countdown an what has been an adventurous day and then the earnings from facebook and qualcomm coming up as well. stay tuned.

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wow, i got no time. mary watch this. here is the dow, we know what happened until the fed announcement came out and we just are heading lower here down 186. watch the vix very carefully, very quickly. we're hitting 20 on the vix which i'm just going to say in the past has been the yellow flag territory. does it signal something? we don't know but we'll see and tonight we've got facebook and qualcomm announcing earnings. facebook is the one we're going to watch. >> the one to watch and tomorrow we have so many earnings as

well amazon visa emc. it's a big day. watch 2,000 on the s&p, too. >> and oil continues lower, the yield on the 30-year is at an all-time low. why wouldn't you stick around to try to figure this out on the second hour of "the closing bell" with kelly evans? good luck, kelly. >> thank you bill. welcome to "the closing bell," everybody. i'm kelly evans, and lets begin as we await earnings from facebook and qualcomm in just moments with how we finished up the day on wall street. a ton of factors from the federal reserve meeting to what happened in greece to the big move down again in oil. the net result of all of that, the dow giving up about 189 points on the close. that's better than 1%. we would have been off 200 if it weren't for a strong performance by boeing. the s&p giving up 27 1.3% and the nasdaq despite apple still also down almost 1%. let's get to it right now with the panel. joining me now is zachary

karabell. chris wheelen welcome to you with robert frank. we have great stuff coming up later. also joining us we've got "fast money" trader tim seymour. and lance around the set. chris, let's start with the fed/oil. a lot of the global backdrop is one of increasing concern and weakness here? is that the theme? >> i think so. watching the sell side analysts back pedal from their estimates has been amazing. >> for the broad market? >> we were midsingle digits for the s&p and now we're at zero. it would be worse if it weren't for apple because that single handedly helped boost some earnings estimates. >> it's surprising to see the nasdaq down so much today with apple doing so well but i'm kind of loath to read into any of this intraday. two weeks ago we had the largest

intraday reversal from morning and night and yet we're ending january in a flat fashion. >> and it looks like facebook's results are out. julia boorstin has the numbers for us. hi julia. >> hi kelly. facebook's results look stronger across the board. the company reporting $3.85 billion in revenue. that's compared to expectations of $3.77 billion and up from $2.58 billion in the year ago quarter. that's a 49% increase year-over-year. earnings per share coming in at 54 cents. that's stronger than the 49 cents that wall street analysts had been looking for. now, breaking down advertising revenue, ad revenue total was $3.59 billion that calculates out, average revenue per user was $2.77 while ad revenue was $2.58. that's also stronger than expected. of course, mobile is always really a key point of focus for facebook. 69% of the ad revenue comes from mobile. that's up from 53% in the year

ago period. so total mobile ad revenue continues to rise and also stronger than the mobile ad growth wall street analysts had been expecting. shifting gears to the user numbers, monthly active users coming in at $1.39 billion. that's up 13% and that's a hair stronger than projections. daily active users, 890 million. that's up 80%, and then of course, mobile growth actually is growing faster than total growth. mobile monthly active users up 26%, 1.19 billion. it's amazing, almost 1.2 billion people use facebook on mobile devices every month and then mobile daily active users, 745 million. that's up 34% year-over-year. so strong growth across the board. really driven by mobile. total mobile ad revenue has doubled in the past year. kelly? >> wow, julia, thank you very

much. just so everyone is aware, facebook traded down initially. now it looks like it's positive on that report. we'll get more reaction in just a moment. first though we're just going to sneak in these quarterback results from qualcomm also hitting the tape with john frtjon fortt. >> qualcomm reporting revenue of $7.1 billion compared to expectations of 6.94. also nongap eps of $1.34 compared to expectations of $1.25. msm chip shipments came in at 270 million. that was the high end of the expected range. also guidance seems to be above expectations at 6.8 billion for q2. that's the midpoint anyway. the range is from 6.5 to $7.1 billion. also, the midpoint of the range on ep is is $1.34. the street had been looking for $1.28. m sm chip shipments estimated to be at 230 million. the stock is trading down after

hours, kelly. >> it is. jon, thank you very much. that's why we want to -- first of all, shareholders take on the earnings. we'll start with facebook and then move on to qualcomm for a second. we should mention qualcomm down to the tune of almost 6% after hours. an interesting theme here brian, with facebook as well was that it initially traded lower. can you think of any reason why? >> you know i think that people are always looking for some reason to get out of something. maybe they don't have their numbers in front of them like he have been studying all day to be on this show today. but we saw that the net profit was so much higher than estimated, and one interesting thing about facebook is it has almost the highest gross profit margin of any stock on the s&p 500 at 82%. so when they beat estimates, that is going to the bottom line and that's set to propel this stock higher. >> and we want to mention to everybody as well facebook co o

sheryl sandberg will be joining the conversation in a few moments with our julia boorstin. we'll talk a little bit more about the share response before we get to all of that. lance, what's your take? brian just brought up the point of net profits and margins for this business being so strong but the initial response was negative. shares are slightly positive at the moment. >> people are always nervous and there's the sort of underlying story of facebook. they talk about great active user growth but it's where is that growth and it's probably not in the u.s. the u.s. has been flat for a couple of years, and what you see is all the growth happening in developing nation and you see facebook throwing time effort, and resources into building that. they rolled out the light version of facebook for the 3g phones. the kind of ad revenue they can make from the emerging markets could be a concern. so these are fantastic numbers, better than anyone expected but it's the makeup the mix of the numbers, what's going on

underneath that is what people are thinking about. >> i would say do not read too much into after hours trading -- >> unless it's microsoft or apple. >> well the microsoft one, yes, but for this kind of thing, there's clearly a lot of orders a lot of people in play. i would not look to this as much as what it's saying to your appointments. where is that user growth coming from. one thing facebook needs to generate more information about is how much time are people spending per account? because obviously deeper use is going to be equally as important. >> it's a thing i always wonder about the quality of a hit. if i'm an advertiser driving that revenue growth for facebook and i have a millennial walking down the street in hong kong staring at their phone, what is the quality of that impression? >> who cares? >> tim seymour? >> i think it's a fair question. >> i tell what you, who cares? if you look at what's going on with these guys the internet ad growth and the size of the platform, no one touches facebook. if you look at the fact they've gone -- >> why are they negative?

why are shares down? >> 3.85 billion was a whisper number on revenue. a lot of people thought they had to beat that. expectations were very high. the comps are very very high. >> apple, that was the same case. >> there's nothing wrong with these numbers. i think people are concerned about the cap ex and the expense growth. that was a big part of the last number. we want to wait for the call to hear that but on the revenue side and the switch to mobile and the mobile internet ad revs, these are good numbers for a company that two years ago had nothing going on. i'm not long the stock, i have no ax to grind other than to say at a time when people are looking across the internet space and seeing companies that aren't growing, this is the company with the largest scale, the large he is ability to grow and they're still doing it. >> something interesting, the quality of these eyeballs on the site is probably changing substantially over the last couple of quarters because of the video program which puts more time on the sites on the page. those videos play instantly -- >> is that for better or worse? >> for better. more time on page more

engagement. >> so you don't think it's driving people away? it is ultimately pulling them in? >> there's concern about data usage but the reality is that people are just buying more data consuming it and there's a real horse race going on right now in mobile video use. you see everybody getting into native video from the platform because they want you to stay there for a longer period of time. >> brian, how important is that going forward? what's your view on facebook shares here? are you expecting you're going to change it after these results? >> yeah, i am going to change it. they beat their profit estimates by 10% and so one thing to remember, i think a lot of people focus on top line growth but it's not top line that comes out to matter in the end. it's the bottom line. the fund i manage the etf is all about the bottom line in valuations, and here is a great example of we can analyze how long people are on it but the bottom line is that their profits are up 10%. that tells me people are clicking through to ads at least 10% more to get to what they want and that's filtering all

the way down again with their gross profit margins and their net profit margins at around 50%. all i'm seeing is increasing net bottom line as these other areas grow at whatever rate they grow but this stock currently is undervalued as it is even without the growth. >> so what's the number brian you would put on the shares? >> i came in here thinking about 90 but with that 10% increase i would raise it up to at least $95. >> lance? >> i just got to say that, you know the story here continues to be for facebook mobile mobile, mobile mobile. i have never seen a company do such an incredible change. a couple years ago mobile was a big question. they knew they had to grow there. so much of their interest and revenue and time spent was on the desktop and the majority of their ad revenue coming from mobile devices, that is a success story that every company that is trying to figure out how to do mobile needs to emulate. got to look at that. >> investor community has been driving them there for a couple

years and it guess on top of hand set sales. >> maybe there is a virtue of being a publicly traded company. enough outside pressure. >> mobile mobile mobile with facebook and qualcomm which is the largest provider of mobile chips is down again -- >> and cut its forecast, cut its guidance. >> the point, tim is that the profitability in the space is either going to an apple which is making them or to a facebook where people are using them. qualcomm is an incredible company but it's had a challenge. >> i agree and i would say this look, you have a tale of two companies. facebook is asendcending into what they're supposed to be doing. the thing that is surprising to me about qualcomm is much of this was already guided. the company told us they were having significant problems. you're seeing share loss to samsung, concerns, there's been press report about snap dragon overheating. meanwhile facebook is up 40%

year-over-year. that's a lot to do with why the stock can't move. >> let's get a little more on that qualcomm report with our jon frt.orttfortt. >> my read on this is it's the share loss of samsung that's hurting qualcomm. listen up. they're saying we have lowered our outlook for the second half in the semi-conductor business largely driven by a shift in share among oems at the premium tier which has reduced our near-term opportunity for sales of our integrated snap dragon processors. i read that to mean apple is kicking the snit outot out of samsung. apple just used the wireless base. when apple gains share, that's less opportunity qualcomm has to make money. apple has momentum seems like they will continue to sell a lot of iphones through the rest of the year and that has qualcomm lowering guidance. >> we have to leave it there. brian, really appreciate it. tim and lance, everybody this hour. thank you so much. tim seymour is coming up on

"fast money" at 5:00. they will have all the after hours movers. don't miss a moment of that. straight ahead here more on facebook's earnings and more as well on the backdrop of these markets and how much that might have to do with the response. up next we'll speak exclusively to facebook chief operating officer sheryl sandberg. you won't want to miss it. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer

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welcome back. we've kept brian and lance around. we'll get more on facebook's earnings. listen the main question centers around weather facebook operationally has done something to disappoint the market or whether the degree to which it was trading lower on this report has more to do with the market backdrop and high expectations. >> it seems like it's very hard to please investors. i don't know them very well so i don't know how to please them and i think they play a cautious game, but there's no way that they can look at these earnings and see huge problems but like i said they want to understand the underlying issues. they want to understand -- one of the big things they want to know about is the perception of facebook as a place that teens do not go or hang out in. this has been a concern for a

while, that -- >> meanwhile, snapchat has big moves this week integrating media. >> and that's a really huge deal because that's an encroachment on facebook's turf and facebook has not really come up with a good narrative to say, no no no, we have the teens, we have that key demo. they're not only on snapchat. >> how many people heren on snapchat? are you on snapchat? anybody? >> it's their parents who are on facebook. >> you're on snapchat? >> no no. >> i follow you. >> well maybe i am on snapchat. there is kind of a market backdrop. there are quarters when earnings are rewarded and stocks go up 15% and quarters where companies are punished for more marginal numbers. apple today, again, let's look at that. a normal company posting what apple posted even though it is a $500 billion company, whatever

it isworks it is, would have been up a lot. >> doesn't that tell you values are too high. when a company reports really good earnings that tells you the expectations and the price is too high. >> but i think it tells you something more about market sentiment for the month of january. we'll see over the course of the year. it may be the beginning of people saying wait a minute, we need to see more than this to push higher. >> clearly saying great numbers but what about the rest of the year? >> fair point. and last year energy was the driver. it's clearly not going to be. what's it going to be? is it going to be tech? is it going to be financials? it doesn't look like it. >> don't even talk about financials. >> the earlier comparison to qualcomm is interesting because i don't think they compare at all. facebook doesn't have a good competitor that's just like it. qualcomm does. qualcomm has a bunch of competitors and i think that's the difficulty. i was at -- speaking of qualcomm i was at ces at the press conference and it was a starkly different event than when they were the keynote at

ces. it was small, smaller room seemed disjointed. >> isn't facebook -- >> google it's all about advertising. it's the same model. >> i would agree -- >> go ahead. >> this is not a social media company. this is a advertising company. facebook does not get paid when somebody posts a cute picture of their puppy or their last dinner. >> do we need to retitle the movie then? what should we call it the advertising network? >> it's like calling a content company an advertising company. >> it's all about the eyeballs. >> but advertising supports the content. people putting stuff on facebook. that's just the way it works. >> but the failure of zuckerberg is that he hasn't transitioned from that model. he hasn't figured out a way to monetize except through advertising. >> brian, do you agree with that? >> well even if that's the only thing he's doing, he's doing a pretty good job at it because you look at these profits -- >> i'm not sure it's a failure. >> the margins are outstanding. >> what would be brian, you just mentioned coming into this

release you had about a $90 price target for facebook maybe now it's $95. what would you have to see in the results or hear on the call to moderate that view? >> i would have to see something that said that they were losing top line which would mean bottom line growth in their case. now, as i analyze this amongst the s&p 500 companies, they were about in my 30 percentile. meaning 30% of the companies in the s&p are more undervalued to them prior to this report, but once this report came out, they may just hit my top 10% in that analysis. even if they aren't growing profits dramatically we're seeing they're already there. they're making the profits they need to, so any slowing of that but all i'm hearing is revenue growth revenue growth and maybe it's not as much as somebody wanted, but it's huge and so that's really what i got to key in on here. >> people are so dispargeespairisparageing

about sell side analysts. up next an exclusive interview with sheryl sandberg. plus we'll hear from billionaire jeff greene who recently said america's lifestyle expectationings areexpectations are far too high. he said this whole story was taken out of context and will join us later to clarify. don't miss that exclusive interview coming up on "the closing bell."

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let's take a quick look at how facebook has been doing afterhours. shares have been gyrating. we'll head back out to los angeles with cnbc's julia boorstin joined in a cnbc exclusive on the phone by facebook's chief operating officer sheryl sandberg. julia, take it away. >> thanks so much. and sheryl thank you for joining us. better than expected results. what drove the upside surprise. >> great to be with you. wet a great quarter and it's capping off a great year. it's a quarter of firsts for us. our first quarter over $3 billion in revenue, our first quarter over $2 billion in mobile revenue. i think the investments we've made have paid off. you see a shift to mobile and what we're also investing in is our mobile advertising business and i think we've built strongest mobile ad product out there and an ability to measure and that's what's driving the results. it's interesting because consumers are shifting their

time to mobile and marketing dollars are following but they're still following slowly and that's what we aim to accelerate going forward. >> certainly very impressive growth, especially in mobile but it's surprising to me and a number of others that the stock isn't really moving higher after hours. do you think that's because of the 87% increase in costs and expenses in that fourth quarter? 87% seems to be larger than many expected. >> i learned a long time ago never to comment or concentrate on the stock price but really concentrate on the core business, and what we're focused on is following the shift to mobile with consumer time and making our mobile ad products work for consumers and marketers and i think that's what you're seeing in our results this quarter and this year. >> now, last quarter you guided to a 50% to 70% growth in operating expenses in 2015. can you give us an update on what kind of increases in operating expenses we should expect and what that money will

be spent on as you look to grow even more? >> we don't generally give out that kind of guidance and we're not doing that this quarter, but i can certainly talk about the investments we're making. we continue investing in consumer products across the board so that consumers can remain engaged. we're really happy with our engagement progress to date. we're now up to 1.39 billion monthly users and our daily users are up to 64%. with our time spent per user growing 10% year-over-year. in order to continue that kind of user engagement we know we need to build great products and we're investing behind our consumer products. we're also investing in our ads business. investing in the business in our ad products making them work for marketers and consumers and in measurement -- and at measurement and targeting. we think our ads are good. we think our ad product is the best on mobile but we still think we can do better at showing the relevant ad the right message to the right person at the right time and that's a pretty big opportunity with everyone walking around with their mobile phone all day.

>> you've been making a big push for video, video content and also video advertising. what can you tell us about how that's going and how much of your ad revenue is coming from video and will in the future? >> we don't break out revenue by product, but we do have big video news this quarter which is that we just hit 3 billion video views per day on facebook which means that consumer use of video is exploding. from the advertising side that gives us an opportunity to do more monetization because our ad products always follow our consumer products. when consumers do more video, we have the ability to show more video ads. video ads are exciting for marketers because it's a format they're used to and they're very emotionally resonant. we're seeing pretty broad a adoption of video. we think there's a lot more we can do to bring video ads to people all over the world. >> how much more high margin are video ads than your other ads? >> well, we don't release margin

by product either but we're excited about what video does in terms of its conversion conversion for marketers. we also think the format itself really works. you know if you think back even a year ago on facebook most people didn't see videos and now video is an increasingly accepted and fun part of the a news feed and the same thing is happening with video ads and we're seeing marketers bring creativity and story telling to the facebook experience with video ads. >> another new area for facebook is instagram. you have been slowly rolling out ads on the instagram app. what can you tell us about the success there? are you ready to break out those results? >> we're excited about instagram. still don't break out revenue by product, but excitement and engagement around instagram is really growing. instagram is a special community with very visually k3e8compelling images that get people engaged. we did a case study with

mcdonald's in australia. they did an ad campaign called signs of summer. they were just pictures with little or no branding or product but they included the iconic mcdonald's red and yellow colors and it showed a four point lift in brand favorability. and that's pretty interesting because it shows how these new formats like instagram give us new and creative ways to build brands in way that is haven't been done before but even that very subtle branding can really work and i think people are excited to take advantage of that opportunity. >> and i know we're almost out of time here but just a quick final question. obviously facebook is investing heavily in r & d as we saw with your cap ex numbers this quarter and also projections for the year. what are the factors that are going to be driving growth in 2015? what are you investing in to drive growth and will we see perhaps more apps either acquisitions or launches like you have recently? >> you'll see from us continued

investment in our consumer products. we're investing in the facebook blue app, in what's app, messenger, oculus investing in our facebook creator lab smaller products at lower rates. you will see us investing in ads and ad technology. we just rerolled out atlas which we're excited about because it brings real results to marketers as well as things like our facebook audience network and live rail. you'll see us continue to invest in growing our teams around the world because we have more users, more partners more marketers to work with and we're excited to do all of that. >> certainly a big investment year for facebook. sheryl sandberg, thank you so much for joining us on the heels of these better than expected results and ahead of your earnings call which is coming up in about half an hour. we appreciate you taking the time to talk to us. kelly back over to you. >> shast to sheryl and julia boorstin. facebook shares a little lower after hours but people will be

sorting through what we heard from the coo. we're going to send it out to kate rogers for another quick earnings alert. >> we'll begin with citrix. the company posting better than expected fourth quarter results. they provide cloud infrastructure solutions worldwide. the stock up 3%. and las vegas sands gaining ground as billion. the casino operators posted better than expected four quarter earnings but it's revenue came in a bit shy of forecasts. it did race its quarterly dividend by 30% to 65 cents a share and the stock is currently trading up over 5%. back over to you, kelly. >> wow. so there is your yield for everybody who is missing it earlier today. kate, thank you. well, he made billions betting against sub prime mortgages. my next guest says the u.s. is facing a different kind of crisis, it's a jobs crisis. that means americans better start adjusting their lifestyles and get used to having less.

billionaire jeff greene explains it all. how much of a distraction has the patriots deflate-gate scandal been for their opponent? the team's president joins us coming up on "the closing bell."

welcome back. billion nar real estate visit jeff greene causing a stir last week when he said the following. america's lifestyle expectations are far too high and need to be adjusted so we have less things and lead a smaller, better existence. we need to reinvent our whole system of life. here now in a cnbc exclusive to offer some clarification and context to those comments is jeff greene himself. jeff, welcome. listen, the reason this caused a firestorm isn't just because you said it, it's because you said it on a private jet. you own one of the most expensive properties in the country and it seems to be a case of do as i say, not as i do. >> let me clear this up. i never said this. it was completely misquoted. what i said was that in a discussion -- it was a very busy, noisy room. maybe he couldn't have heard me. but what i said was the global equalization of wages and technology which is growing at an exponential pace has killed

so many millions of jobs in america and other western economies and it's going to kill them at an even faster pace going forward. we have our work cut out if we want to blu an economy that's inclusive that i grew up in. >> i want to bring robert frank in. >> thanks so much for joining us. as part of this what your focus here is is creating opportunities so we have a stronger middle class. i know that from talking to you in the past. as part of that would you support higher tack tacks onxes on the wealthy? >> there are a number of things we can do. unfortunately, it's kind of approached in a piecemeal way. but, yes, we need to have higher taxes. and i'm certainly prepared to pay higher taxes. if we don't have the kind of money in the economy to provide education opportunities and not just part-time education but life-long education, we won't be

able to address this problem. another thing we can do is the minimum wage. if you look at the minimum wage and you just adjust it for inflation from the 1950s, the national minimum wage would be $11. there are over 12 million people today in america who are earning under $11 an hour. you know what kind of difference that will make? and for me as an owner of hotels where we employ lots of people who are -- most of whom earn more than minimum wage we wouldn't be firing any of them if we were required to pay $11 an hour. we have a building in astoria in queps, when we bought it there was a gentleman who was a maintenance superintendent. he was only making $12 an hour. the former owners weren't paying what they were supposed to. we raised him to $24 an hour. we quit his part-time job as a dishwasher, he's taking english classes, spending more time with his kids and he has a chance to be integrated in an inclusive economy. >> let me get back to your original point about the quote. there are a couple things about

this story that struck people but the primary one seemed to be that they were getting told by yourself that americans need to adjust their living standards or their sense of what's possible downward. are you saying that you don't think that? >> absolutely not. kelly, it was a complete -- it was a misquote. it was a fabrication -- >> you think there's been no change no change in what's attainable today for americans writ large. there has been no change? >> no it's much harder. i work in palm beach and my office is next to the breakers hotel where i worked in college as a bus boy clearing dirty dishes to pay my way through college and every day i drive by that breakers hotel and i think we need a country where every bus boy in that hotel has the opportunities i have. of course, but it's much harder today. why? because globalization, technology. look, lots of people around -- >> so it is harder today. >> it's much harder because, look, we have a massive job killing machine operating in western countries today and

that's called exponential growth of technology. look anywhere and it used to just affect manufacturing. the problem now is some of the jobs that were service jobs which we always felt were kind of exempt from technology threats -- >> but here is my point. and i appreciate your diagnosis of the problem. if you're saying there is a problem then, first of all, that's what we're trying to establish. it sounds like you think there has been a change to maybe what we can get used to in terms of growing and thriving in this economy relative to the past and if so are you basically saying there should be policy measures that you support that would include, you know, sacrifices you would make to improve the outcomes for everybody else or no, do you think it's just a matter of this is the system we're handed today? >> absolutely i think -- absolutely i don't think it's hopeless. i think we're in a very hopeful time. we can embrace technology. technology can be a great

equalizer when it comes to health care and education to the point where rich poor middle class can all get the same benefits. look at what the president did with community college education being free last week was a great step. that's the kind of thing but it's a piecemeal step. we need a full fledged program that attacks this in many many different ways but i absolutely believe that look let's face it, we're the biggest economy in the world, we have the best universities. we have plenty of food clothing, health shelter, energy for everyone here. the problem is how do we allocate it again so we can have a thriving middle class because right now the middle class is getting gutted out in america. without a middle class in america, we won't have an economy. that's why -- >> let me just get zach and chris in here quickly as well. zach? >> it can also be that the relentless focus on income as the pure standard and gdp growth as the pure standard of a country doing well misses the degree of what is that income and that living standard going to purchase.

the free college education is interesting because if we're suddenly a free college education, that wouldn't show up at all in wages, right? wages can be stagnant but if college is free everybody is able to afford more of what is necessary in life. we're focusing too much on growth and not quality of life. >> talk to us about the real estate market. you're very well plugged in. i'd like to get some data out of you. what do you see happening with single family real estate the next couple years? >> if you look at the numbers that came out yesterday, i mean they were up from previous months and year-over-year, but we went from a million four housing starts back precrisis to 480,000. we're barely at 40% of what we were doing. i think there's a few reasons why that's happening. number one you know i'm a developer of apartment buildings. i can tell you a lot of the apartment buildings built today are much higher quality, huge amenity packages and that's one of the reasons a number of people are staying in apartments, not just because -- the other reason, of course is people are still shell shocked from what happened in the crash

and they're not ready to go out and get a mortgage and buy a home. i think the housing recovery will be slower than we'd like it to be. again, until we can do something to rebuild the middle class and get real wage growth -- >> but you're not shorting sub prime this time around? or maybe you're shorting sub prime autos, i don't know. >> actually in my investment portfolio i'm long some of the old sub prime portfolios but they seem to be better priced and are much more transparent. >> on that subject of your portfolio, you have about $2 billion i think in financial assets. a lot of those in stocks. i know you watch cnbc religiously. where do you see the markets right now? what makes you excited or nervous about 2015? >> well look, i think there's no question just being in davos and spending time and seeing the central bankers, whether it's from our central banker -- our fed chairman janet yellen

chairwoman or whether it's the uk or europe or kuroda in japan, they're all saying we're going to print money. if everyone is printing money the party can go on for a while longer. asset prices can keep going higher. we can keep having higher and higher prices real estate prices, stock prices, but the problem is we need to have a fundamentally strong economy with wage growth. that's the only way it's going to work. >> yeah. you and everybody, jeff. the federal reserve, everybody is watching the wage piece of this. thank you for coming on for clarifying your remarks. jeff greene appreciate it. billionaire retail -- what am i saying? billionaire real estate investor. thank you, everybody. up next, we have more breaking news on facebook and qualcomm and how much money is at stake for the seahawks as they look to defend their super bowl championship on sunday. the team's president will tell us about those super high stakes and how much of a distraction deflate-gate has been.

welcome back. jon fortt just speaking to qualcomm's ceo about the company's earnings. the shares are under pressure after hours. >> got some key questions answered first of all about samsung. qualcomm didn't explicitly say they were talking about samsung. he said apple's share gains hurt qualcomm more than the loss of the design in this one samsung phone which we suspect to be the galaxy s6. the fact they're gaining share on the android competitors who

use qualcomm's application process. the low trend phone price, they expect that's going to shake out, it's going to bottom out and the customers in emerging markets will get higher end phones. finally their relationship with sam song continues to be good. this is one design loss. they're saying they don't think media tech and intel are changing the game on them. they feel good about their position and they've got a chip coming in the second half that's going to do well for them they believe, kelly. >> all right, jon. not doing much to stem the decline in shares. they're off 7.5% after hours. jon fortt with some key commentary from the ceo there. thank you. we've also got more on facebook, another big mover after hours. >> just want to highlight some news that sheryl sandberg made in our interview a couple minutes ago. she announced facebook has an average of 3 billion video views he have day on facebook. that's up from just 1 billion back in september. so that tripling in video views over just those several months indicates facebook's big play

and it really does show that facebook does have an advantage now as it tries to get some of those advertising dollars and to really lure over some advertising dollars from television that's not helping facebook stock which is way down about 2% right now on those operating expenses raising some concerns for investors. back over to you. >> and julia, a lot of joking as well about to what extent the auto play of videos counts. >> certainly. >> so one question about those video views is that facebook does auto play their videos and so some of facebook's critics might point to the fact that measurement might not be as accurate as for a site that does not auto play. >> right. fair point. thank you so much, julia. julia boorstin covering those earnings. facebook shares on the move after reporting. we'll recap the results and look ahead to tomorrow's earnings calendar which includes amazon and google.

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it has been a busy hour for earnings. we have kate rodgers to round it up for us. >> qualcomm moving lower after lowering its full year guidance

below street forecast. they expect their new snapdragon chip will not be used. looking ahead to tomorrow amazon is expected to earn 17 cents in its fourth quarter. google looking for a gain of $7.08 on revenue of $14.6 billion and visa expected to earn 2.49 on sales of $3.3 billion. and biogen expected sales of -- back over to you. >> we certainly will. thank you. meanwhile the patriots have been surrounded by questions of deflaet gate as they prepare for super bowl xlix is. a scandal impacting their opponents? the defending champion seahawks

we will speak to the team's president when we come right back.

let's start here with the quick news alert. pharmaceutical executives getting invited to the white house. >> we learned several heads of

research at some of the biggest drug makers received mysterious invitations to the white house friday morning it. doesn't say much. but the expectation is that the white house will share more details on the precision medicine initiative president obama mentioned in the state of the union address this. is expected to potentially add more funding to drug development for precision medicine. back to you. >> all right meg. thank you so much. turning now to see if the seahawks can win sunday's super bowl. the last to win back-to-back was sunday a opponent the new england patriots. we are joined by dave from cnbc sports. >> life is good in the great northwest. back to the super bowl for the second straight season. three of the top 12 selling jerseys in the league. who would have thought that five years ago. peter, life is good for the seahawks organization.

how has winning the super bowl changed things from a business perspective? >> our business is booming. we have the best fans in the nfl. we are leading the league in merchandise sales. 63,000 season ticket holders. a long wait list of fans that want to buy. >> 12s as they call them are very intense. >> peter, great to have you on the program. just talk about what is at stake for you guys operationally whether you win or lose sunday? >> it is all good right now for the team and for our fans. if you could be in seattle you would see our fans walking around with jerseys, 12 flags all over the city. the city is strong and the culture is great. >> we don't talk about football here in new york. old franchises how do you compare in terms of revenue and profitability with the other teams? >> well we have seen very

strong revenue growth over the last few years and profitability growth, we are happy about that. we see great improvement in all fronts in that regard. >> dave. >> i want to ask you, you have some of the most fan-friendly player in the league like russell wilson. selling jerseys, reaching out. then you have oddballs like marshawn lynch. 29 times said i am here just so i don't get fined. how do you balance the needs and rules of the league versus the interesting quirks of players like marshawn? >> we respect all of the league rules. we celebrate our players as individuals. they are remarkable young men, smart, perform at high levelings under the national spotlight. they get along great as a team. we are proud of our guys. >> i know that a lot of us have been focused on the unfortunate

deflate-gate deflate-gate. you will say your players are focused on the game. but has this been an unfortunate distraction and do you hold the nfl or the press somewhat responsible for it? >> it is an issue for the nfl to sort through. we really are focused on sunday's game and preparing for it. i will be leaving here to go to our team practice. >> just as a quick follow up to that as well -- dave so sorry. peter, do you have any qualms about the patriots the reputation they have for cutting edges here and there do you have any concerns about the patriots? >> i have great respect for robert and jonathan kraft. i know them well personally. they are very good people and good owners. i had a long relationship with them and hold them in very high regard. >> all right. >> politically correct answer.

back to you. >> dave thank you so much. peter as well. really appreciate to both of you. super bowl xlix is coming up right here on nbc. coverage begins at noon eastern. that does it for us here on "closing bell." "fast money"begins right now. live from the nasdaq markets overlooking new york city's times square. a late day selloff in stocks. apple's blowout earnings giving strength to the market but the fed decision sparked a turn of events. olbermann accelerated its rally. i guess the fed chief has more of an impact on stocks than apple ceo, tim cook. we start off with facebook earnings. shares moving to the down side after the