olga olga van heusen and izod. they have licensing agreements with 75 brands. there's a way to play some of the fashion names. melissa? >> thanks souch, courtney much, courtney. i'll see you tonight on "fast money." >> thank you for watching "power lunch." "the closing bell" starts right now. and welcome to "the closing bell," everybody. i'm kelly evans here at the new york stock exchange on a monday. >> on a tuesday -- >> i mean tuesday. welcome back. >> it feels like a monday. >> i'm distracted because you're back. >> nice to be back. i love coming back into the freezing weather. don't look now, the s&p is trying to close at another record high as it did on friday. any positive close will be a new all-time high for the s&p, and we are this close to an all-time high for the dow which would be at 18,053.71 kelly was just telling me.

so we're 15 points away from that or thereabouts. >> sure. getting close. apple also hitting new highs. it's like a market of its own. we have the analyst who just hiked his price target on the stock to $150 and satisfiesys this company is on the way to a $1 trillion market company. >> in case you hadn't heard, the buzz is they're working on a car now. that would be one of the new projects. we'll look into that a little later. let's show you how the markets are trading today. hasn't been the most volatile session. a lot of eyes on the negotiations between the eu and greece on the debt negotiations. something else we will talk about, but right now the dow is up 12 points. 22 points away from an all-time high. do i have that right? yes. the sn is&p is up 1.45 in record territory. look at the nasdaq 5,000-plus is the old all-time high set back in march of 2000 and, boy, are we getting cleser.

>> . >> these are the round level that is will get people talking, talking about the tech cycle this time what's different versus last time and what's not and how risky is it. >> let's talk about it all. we have a lot to get to in our "the closing bell" exchange. we have mark joining us today. ken from money matters is with us at the big board. he's also author of "buy hold and sell." also with us today gerard fitzpatrick from russell investments, michelle caruso-cabrera is here to discuss the situation with greece, and rick santelli, of course, is joining us from chicago. so michelle start us off. this is what has captivated a lot of traders over the weekend and today. what's the latest how do they stand right now as those negotiations continue? >> so the market has moved higher on reports that greece was finally going to ask for an extension of the bailout program. i have been communicating with greek government officials. i just e-mailed back and forth with a greek government spokesperson, and here is clarity. they say they are not going to ask for an extension of the

bailout program. they may ask for an extension of the loan agreement. again, this is a conversation via e-mail but it sounds like they are going to try to ask for the money but not necessarily the conditionality that goes with it and it's not even a certain thing at this point. so that's where we stand right now. a lot of parsing of words and i'm not sure that the move that we saw in the markets was necessarily justified. i'm not sure it brings them closer together but they're trying really hard to get to something that on paper is acceptable to both of them. >> and let's bring people up to speed here on how this has affected the markets today. it was a dow jones headline earlier we saw markets turn positive for the first time when they said greece intends to ask for a bailout extension on wednesday citing an official. michelle, in the meantime what's happened is "the financial times" story that's talking about $10 billion of outflows from greek banks or euros, i'm sorry about 10% of the deposit base. if mohamed el-erian was here he would say all that matters is the pace of outflows. we have the ecb meeting tomorrow

at which they apparently according to this report have to discuss whether to keep providing emergency liquidity assistance to the greek banks. >> they can decide any day they will do a teleconference and decide if they're going to pull the emergency liquidity assistance from greece. it's my understanding based on people who were in the room yesterday that they don't think that happens tomorrow. the reason we're talking about tomorrow is because it's every wednesday that the governing council meets. but if things start to look very, very bad if we start to see deposit outflows become very extreme and the ecb concludes that greece has just become too much of a bad credit risk, they could say, okay we're not going to support greece and the greek banks anymore, and then you could really see a squeeze. think cyprus where you're going to have to have capital controls, et cetera. my reporting indicates unlikely tomorrow unless something very very ugly has happened today. >> mark what do you make of all this? you know you have to make money for your clients. what are you doing with this in

it's meantime? >> well one, bill we try to put some context on it and say ultimately we think the risk of a contagious from the greek government walking away from the bailout discussions and taking with it greece's participation in the euro as unlikely and as a result we think that it should not move investors' attitudes towards being involved in equities which we think will withstand any kind of short to intermediate disruption as a consequence of the distortion created by that threat. that said we continue to like european equities at large over u.s. equities and we've already been rewarded for having that advocacy so far this year as the valuation disparity is beginning to close as news across the euro area in the aggregate is improving. >> you know let me pivot a little bit and talk about this from a rates point of view. that's the other interesting development. you have the 10-year back above 2.1% from below 1.7% not terribly long ago. how does the u.s. outlook for

rates relate back to the concern about greece? >> three years ago when greece hit the headlines, treasuries would rally very strongly. look how the treasury market has responded. we're not so concerned. you can see where treasury yields have increased up to 2.15%. so basically the market looking at it saying not so much of a concern with greece and coupled with pretty strong wage information coming through from the u.s. and strong employment numbers. we're really traveling through a period of real sell-offs within treasuries. looking at the year ahead, i think we have seen the biggest move in the treasuryies so far. a 50 bit move in a month, i don't see that happening again. we do believe the treasury yields are going up. we're expecting between 2.50% and 3%. enough good news coming through from the u.s. domestic market and subsiding and receding inflationary risk would cause yields to go up but against that you look at the wider global bond market particularly germany with yields down 35

basis points that's going to put a certain ceiling. we think they're going up but not shooting up. >> ken, it would appear the u.s. equity markets not concern eded about greece leaving the eurozone eurozone. yet we're close to all-time high for the nasdaq. are you buying at these levels? >> well certainly right now greece is the word. it's got groove and it's got meaning. but i think -- >> you've been waiting all weekend to say that haven't you? >> exactly. yes, i have. you know five years ago when we had the big greece problem and in 2011 is the same at that time it was a surprise. it was kind of scary. nobody was really prepared for it, but now we've had five years to prepare for it so i think if you get caught in a greek issue right now, it's your own fault. i think most people have taken the precautionary measures -- >> so you're out of europe?

is that what that means? >> no we're fully invested not out of europe at all. in fact if this whole issue with greece turns into a down in the market i would see that as a buying opportunity because people have prepared for five years for this. if it happens -- it's like a boxing match. the punch that knocks the guy out is the punch that he didn't see. the punch that he's expecting, he can take that all day long. >> but my point is this if the obvious thing for investors to do is protect themselves in this case but you're saying that you're long europe then either you're saying that you're not worried about this outcome or that it's going to play out in a different part of the market in which case investors couldn't protect themselves or could they? >> i'm saying for example bond investors should at this point have protected themselves from the possibility of a greek exit or a greek default and so therefore, the affect of that happening would be muted. so, therefore, if the market reacts to it emotionally and it goes down i think the basic fundamentals are there to support that it will come back. so i'm not worried about it right now.

i think the market will play through this. >> rick santelli when i left on vacation 11 days ago, we were talking about much lower yields for the 10 and the 30. oil was still comfortably below $50 a barrel. now everything is rising. is that -- are they working together on this or bring me up to date. what's going on here? >> well i think the move in treasury rates has been well telegraphed. the market hasn't acted really correct since the january 22nd ecb meeting. we now have the difference between 10-year yields and 10-year bunds at the widest it's been since, well 1989 26 years. i don't think it has anything to do with greece directly. i think most of the traders i talk to think it's great water cooler talk but extend and pretend is what they believe will occur. if they were worried about greece why would they be selling treasuries? with regard to the way the socket is acting many are saying rates are going up because the u.s. is so great. the national association of home blrs dropping to 55 was the

reason they picked today to sell treasuries because of the economy? i think it's about europe and i think it's really simple. i think march is getting closer. qe is getting closer and they can now see the chimney and they can envision santa going down it. >> does that mean rick you think yields for example, in germany are going to start moving back up if this quantitative easing comes and the greece situation doesn't disrupt markets? >> no, i think quantitative easing u.s. style will be traded by global investors like they did in the u.s. they will be buying equities and the high quality sovereigns. i think that spread tells me the distance is going to get even wider between the two maturities which by the way, we settled at 67, right where we're at in two years. settled at 1.65% in 10s. and 2.75% in 30s. i'm telling you, you could take all the fundamentals and put it in a baggie and drop it in lake

michigan. the only thing that's going to matter in the next 48 hours is if we get on the wrong side of last year's settlement. >> let's not forget you drop it on lake michigan it's going to thunk today, it's not going to sink. >> that's true. >> last word michelle. the markets, the way they're acting here, you know this could end tomorrow i guess. if angela merkel agreed to it. if people just finally agreed to what we know is going to happen or are we being complacent about this? is it still possible that greece leaves the euro? >> i think there's an assumption out there that the markets are pricing in that somehow everybody comes to a deal. i'd go a step further. everybody -- what the markets might be pricing in is they don't care if greece gets a deal or not. it's not that clear. i think if it happens, it's a big watershed moment historical moment for the euro for the european union, et cetera but so far the markets keep telling us they don't think it's going

to be a big market event. it's been so advertised and yet very little response. >> michelle thank you so much for your reporting on this hour as we try to follow it everybody. thank you for joining us. 20 is the number of points the dow is higher. we're looking for 18,050 and change. the s&p though not only closing here potentially at a new record if it stays positive but maybe, bill above the 2,100 mark for the first time. >> the bigger threat to the u.s. economy right now is the ongoing west coast port dispute costing the economy billions of dollars every day. when we come back the ceo of the port of long beach itself tells us whether there's any end in sight to this costly fight. that's coming up. and apple hitting another new high today. coming up we'll hear from one analyst who says this hot stock is set to rally another 17%, maybe more. we're back in a moment.

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18,053.71. we close above that on the dow, you have an all-time high. we're getting closer to it. s&p already in record territory. any positive close will do it and the nasdaq is getting darn close to that. we've been saying it for a long time. it's been at a 14-year high but we're almost back to the old all-time high set back in march of 2000. >> i'm thinking some good primes on that number to keep an eye on here. it's a round number on the s&p 500 that we're looking for. about 2,100 and nasdaq 4,900. thomas perez is in san francisco tooted to today to try to solve the port dispute between dockworkers and their employers. the disagreement has plagued 29 ports on the west coast causing supply disruptions in cars to food to electronelectronics. it's costing about $1 billion a day. >> according to the ceo of the

port of long beach, he joins us in this cnbc exclusive. thank you for joining us today. so much to talk about. i guarantee you, people take for granted the importance of these ports in our nation and they do that until they're missing something or they're paying more for something because of these port disputes. now, with he know labor secretary perez is there in san francisco to mediate. have you had any education of whether they're making progress in these talks right now? >> they've been at it all weekend and obviously secretary perez's involvement is a welcome addition. we've got a great mediator that has been assigned by the white house, and since he's been involved, it's been a tremendous amount of progress made on the talks. so i can only imagine that secretary perez's involvement is going to aid these talks and get this to conclusion. i mean we're so close. i can't imagine they can't

resolve this very very soon. >> let me just quote one viewer, john, who writes in to say doesn't this make a great argument for breaking up both the manage getment and the union monopolies as an antitrust effort here? >> it's an issue that's got to be addressed. the impact on the economy is so great that certainly a lot of those discussions are going to take place. >> now, i know that you're working on upgrading the port of long beach. you want the port of the future. how much of that has played a role in all of this? i mean you know disruptions, the infrastructure issues we faced, getting these ships in and out of port in an efficient manner so the economy can keep chugging along. where do weigh stand on all that? how important is that? >> it's critically important. we've been investing billions of dollars. we're currently in a $4.5 billion infrastructure program as we speak. about halfway through that. a lot of it has to do with increased capacity for handling

these very very large container vessels that are now coming into port, particularly on the west coast. we are handling the largest vessels making the run between asia and the west coast. these are 14,000 container vessels. they dwarf anything that we've seen in the past and these are small compared to what's being built right now. so that infrastructure and the ability to handle big ships is really calling for a tremendous amount of investment at the port level. >> and at the same time as i understand it, you are not represented in the labor negotiations between the maritime association and the union. so how frustrated are you? how involved can you get to come to a resolution here? do you just feel as though you were sitting on the sidelines? >> i was dark haired about two weeks ago so the frustration levels are pretty high. >> what can do you? what kind of leverage are you

bringing to the table if you're the entity severely impacted by this? >> our job is to facileitate as much of the positive outcomes as we can. we are certainly doing everything we can, including reaching out through our political structure to the white house and the white house has responded. we have worked as hard as we can to make sure that both sides know and feel what the ultimate customers are feeling in this entire process, and it is a severe amount of pain right now. >> i keep reading how long it would take to get things back to normal again. i want to hear it directly from you. assuming they get something done by this weekend, i mean i don't know if that's realistic or not, how long before we start to see that backlog diminished enough to where we can get back to normal in terms of shipping here in the u.s.? >> well we have as of this moment we have about 32 ships at anchor, 22 of them are container vessels. that is an enormous and almost record level of backlog sitting

out at anchor. our actual terminals, the actual operations that handle all these, we have six container terminals at long beach alone, and those are at above 95% physical capacity. so the challenge of digging out from this is immense. it's epic. we've not ever experienced this before, and, of course this is tied to these very very large vessels that are now calling upon the ports. once a labor agreement is signed, we will engage our recovery plans, which involve both our terminal operators as well as all of our port assets in providing as much available space as necessary to clear this freight out. >> you didn't really answer my question. are we talking nine months or so to get things back to normal? is that what i keep reading? is that true? >> no, that's not true. we think that we're going to make tremendous headway within about six to eight weeks. >> okay. >> we'll certainly be back to

normal by our next peak which is really the september time frame. >> all right. we wish everybody the best. get something back together there. thank you for joining us today. >> you're welcome. >> thank you so much. >> we have a news alert now on a drone development. hampton pearson has that story. that's how we can solve this shipping problem, hampton. >> well not exactly. this is an announcement from the state department. basically about some policy directives that are going to lead to the wider export of armed drones. the state department putting out an announcement this afternoon saying that it will assess on a case-by-case basis the potential exports of military drones including armed systems. the state department also going on to say that each recipient nation has to agree to end use assurances and the heart of the end use assurances that the drones not be used to conduct unlawful surveillance or

unlawful force against domestic populations. but, again, announcement from the state department about an expanded policy that could lead to the much wider export of armed drones. quite a development policywise and potentially down the road as far as the global competition and for defense contractors into the global drone industry if you will. >> yeah, sun is probablyomeone is probably going to do it. it's all drones all the time. >> except for amazon. i heard they got outlawed while i was gone. 35 minutes left in the trading session. the dow is up 15 points. it's not been a very volatile session today as we come back from the long holiday weekend. s&p is up 1.5% and the nasdaq is up 1 point. is apple heading to a $1 trillion market cap? our next guest thinks so and he just hiked his price target on the stock to $150. ubs's steve mill len vich will join us and explain why. >> plus it's no fun and games

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welcome back. heading towards the close. keeping an eye on markets not because the numbers are big in terms of the gains, but the levels instead to generate some

headlines. could be a new closing high for the dow. 12 more points to go on that front. >> it's like we're on the 2 yard line before a touchdown, and -- >> remember when the titans were in the super bowl and he stretched his arm with the football on that 1 yard line. i'm >> i'm thinking more about the last super bowl and a certain slant pass that went wrong, dom chu. >> i remember both of those games, and yes, the titans came up just that hair short here. let's talk about shares of go pro today because they are surging and that's despite an expiring share lockup that allows insiders to sell shares post ipo. helping things along is northland capital. they believe the stock is a buy believing this could be an attractive entry point. it's a volatile stock though. it's down quite a bit from its highs. the trash business is delivering for investors. waste management stock is climbing on an earnings beat making it the top performer in the s&p 500.

you can see up by 6%. the company posted better than expected fourth quarter results on cust cutting. the board also authorized $1 billion in share buybacks for 2015. from best to worst, shares of cable tv and broadband internet provider cablevision the worst performer in the s&p 500 today. after analysts at ubs downgraded the shares to a sell rating. he think among other things customer and sales metrics could come under pressure if verizon gets more aggressive with its competing fios product and we're going to end on apple. the stock hit an all-time high. "the wall street journal" reported apple has ordered its asian suppliers to make 5 to the 6 million iphone watches possibly. the iphone maker's stock soaring 20% in the last four weeks. apple shares we keep talking about it but it's only because it keeps hitting record highs in trading. bill kelly, back over to you guys. >> thank you, dom.

>> kind of patriots. just to carry on the analogy. don't you think apple is the patriots of stocks, if you will? >> no. >> no. >> i can't -- i'm sorry, i just can't go there. apple not just hitting record highs today. it also reportedly is working on a car. why not, right? according to "the wall street journal," it would be an all electric vehicle that resembles a minivan. >> could this be a major game changer for apple propelling shares higher? joining us is steve milunovich who also recently raised his price target on the shares to 150 bucks. welcome, good to have you here. >> welcome, steve. >> thank you guys. >> how much of this has anything to do with the car which i imagine you can't even begin to factor into your models yet. >> yeah that's true. probably not too much. a car is interesting ap it's a $2 trillion market but the gross margin on a car is like 27%. that's apple's operating margin. so economically it seems like it's a bit of a stretch. even if it's true it's probably years away. so i think the stock is much

more reacting to the strength of the last quarter and a little bit of sex appeal of the apple watch. >> i'm typically slow to this but i was reading while i was on vacation that apple has made the transition from being a widget maker to a platform company. i mean that's really what will we're talking about, this transformation that they've gone through that now you feel is going to take them to a trillion dollar market cap, yes? >> yes, i think our $150 price target doesn't quite get them there, but the ecosystem is increasingly important. tim cook has said he wants ios everywhere, car play home kit, health kit, apple pay. while they still monetize through devices, so ultimately you need more phones and more watches to be sold the change is apple is becoming very pervasive in consumer lives. i think that could take the stock to the next level. >> it's interesting because, steve, a lot of times we talk about the ecosystem. it's really just a way to drive more device sales, isn't it? or are you talking about an ecosystem itself that becomes as good for shares as for example

the iphone itself? >> well, i still believe apple primarily monetizes through devices. i believe you need to see this benefit hardware sales. there will though be some service revenue streams. obviously apple pay will have a high margin. there may be other services streams. i tend not to over emphasize those. we call it hotel apple. you check in and perhaps you never leave. it yes, they have to monetize through hardware, but services really is the glue to the story. >> for years we said what happens to apple if there's no steve jobs? we learned now. what about if there's no tim cook? is he a linchpin in all of this or as much as we thought steve jobs was back in the day? >> well he certainly is. he's obviously got a different skill set but he's done a tremendous job in putting it all together. there's an interesting new yorker interview with johnny ives. if he decided to retire, the

stock would take a pretty good whack, but i think what tim has done is apple is bigger than any one person at this point. if they expand into new areas, they become less dependent on the iphone and that would be helpful. >> what's the number in which they become a $1 trillion company? >> that's a good question. i haven't calculated it but it's probably $160 to $170 per share. >> so we still have a ways totion onto go on that front. thanks for being with us steve milunovich from ubs. >> i need to see how many shares they have outstanding. then we can answer that question. >> do the quick math. i couldn't do it. we'll do it during the break. 30 minutes to go. coming up a look at the toy battle between mattel and hasbro. >> first though, here is courtney reagan. >> here is what's happening at this hour. homeland security is stopping preparations for a program designed to shield millions of immigrants from deportation. that comes as a result of a federal court ruling temporarily

halting it. attorney general eric holder has asked u.s. attorneys who brought cases against institutions for their role in the mortgage crisis to identify individual employees to prosecute as well. he's given prosecutors a 90-day deadline to proceed. activist investors are at it again. tempur sealy's largest investor wants to replace the ceo and reshuffle the board of directors in a bid to improve operating performance. saladworks which calls itself the largest u.s. franchise fresh salad chain has filed for bankruptcy today. it was created in 1986 and has more than 100 locations. that's what's happening at this hour. "the closing bell" will continue after this short break. what does it mean to have an unlimited mileage warranty on a certified pre-owned mercedes-benz? what does it mean to drive as far as you want... for up to three years...

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losing some ground right now. we head toward the close with about 24 minutes left in the session. the dow now suddenly trying to stay positive, up just two points here. the s&p is up a fraction. again, if you're just joining us, any positive close for the s&p is a new all-time high. we're still 30 points away for the dow and now the nasdaq has moved to negative territory. >> the biggest toy convention of the year is kicking off in new york. it's not all fun and games for one of the biggest names in the industry. >> that would be morgan brennan. >> we have her looking at why mattel, morgan is struggling while hasbro is thriving.

welcome. >> hi, guys. well, yeah this is really a tale of two toymakers, and to see what i'm talking about, you should take a look at the stock chart. year-to-date hasbro up double digit percentages. shares of mattel down double digit percentages. why are we seeing this? hasbro's earnings were in line company boosted dividend. stock buyback, also seeing strong sales growth in many boy brands marvel transformers, netf. mattel had sales decline in many brands and the abrupt resignation of the ceo. mattel has a huge display here at the toy fair, and a big portion of that is actually dedicated to the revamping of some of its most classic toys including barbie which is its biggest brand and the one that's really been struggling the most. here at the toy fair it's unveiled hello barbie. this is a doll that can have a conversation with little girls and apparently little girls have been requesting something like this for many years.

it will be interesting to see how that plays out when the doll hits the market later this year. mattel is losing that very valuable disney princess license. starting next year hasbro will be manufacturing all the wildly popular frozen dolls and analyst expect this to contribute hundreds of millions of dollars in revenue to hasbro. hasbro has their showroom down the street. they have monopoly celebrating its 80th anniversary and saw an increase in demands last year. they have new nerf products geared towards teenagers and another disney brand, the descendants rolling out as well. >> thank you very much. for more on where this fight may be headed let's bring in david nelson from bell point asset management and jack moore from the street.com. >> you both agree hasbro is crushing mattel as the market and everybody sees. a simple question, which one is the better bet? >> certainly hasbro. there's no question here hasbro is the better name.

the only problem i have with the company and we're going to talk about all the good things they're doing and morgan just talked about it, is the fact that it is at an all-time high. for me as a portfolio manager, i don't have to chase every skirt out there. i don't have to buy every stock that's at an all-time high. things are going very well but at 18 times forward earnings for a company whose top line is growing below single digits i'll sit on the sidelines for a while. >> do you agree? >> i agree. but i also have to say, i would be a buyer of hasbro absolutely right now. mattel is trading at a higher valuation even after all these disasters. >> it's trading at a higher valuation? >> still is. >> because of the yield? >> it's because of the yield. at 5.5% it's what is drawing investors in. that's the argument right now. >> it's so strange because it was supposed to be the case a high yield would offset -- >> that yield is gone. >> explain to me why so many -- >> the yield is a mirage. the yield is unsupportable at its current level. they're barely earning it right

now. i fully expect since i believe it's brian stockton has been -- he resigned. i suspect he was probably forced out. first thing a ceo will do is cut that yield because they're going to need that cash. >> that's an easy way to do it. >> for an extra marketing expense or perhaps an acquisition. >> we were talking about how these things run in cycles once upon a time mattel was the shot stock and hasbro was struggling. now it's come the other direction. so they're cyclical let's face it. wouldn't you buy a mattel at some point if it becomes cheap enough here? >> it's your grandmother's company. i don't think it can even be -- you have to look what hasbro is doing. it's setting its position for 5 to 10 years. 30% of the revenues come from the disney franchise. that's key. you look at 2015 alone, you have the avengers "star wars," injure ras sickjurassic world. hasbro gets the look on that. mattel can only point to the disney princess segment, but in

2016 that goes to hasbro because they outbid mattel to get that. so you see they're setting up sustainable competitive advantage. >> i would agree with jack on most of those points but i think you're going to get a better opportunity for hasbro. it wasn't that long ago we heard about the rumors about a potential ak which signatures of dreamworks. that pretty much got a thumbs down by wall street. the stock took a big hit. it tells me that there's something going on. they're probably looking at some m&a and if they do that, it's going to be very tough to morph from a toy company to a media company. it could even put in jeopardy this newfound friend they have in the mouse. >> it's a great point and also jack, where does it leave mattel? what kind of acquisitions or investment spending should they be making to turn around the entire narrative on this name? >> well, that's what you need to focus on. within their own framework right now, they can't grow. it's not -- there's not going to be some turnaround some magic switch. what they're spending money on is promotional strategies

commercials, shelf space. if you're selling toothpaste or toilet paper that's great, but if you're selling toys, all the kids care about is the product and they don't have that. >> they are the toughest consumers out there. that is for sure. good to see you both. >> appreciate it. >> 18 minutes into the close. markets are trying to stay positive. we'll look at a couple factors that could be behind it. any headlines from greece have been moving things around. oil, too, had a lot to do with moving higher earlier in the session. it's something we have to keep an eye on. >> we will look at whether the geopolitical situation in greece is going to be causing a lot of this and what's going on with oil? are we going much higher from here? have you seen the spread between brent and wti? it's $10. >> incredible after it almost disappeared entirely. people are making and losing a lot of money on that trade. >> and will thef aa's proposed rules for commercial drones ground hopes for amazon and other companies?

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the s&ptrying -- the s&p trying to close at an all-time high. >> market is a little indifferent to the greek crisis. i want to show you some major sectors. the important thing kind of a mixed market right now. health care, financials materials, other side of positive or negative that's the important ching. two sectors catching my interest. energy. oil has been up and energy stocks have been up. here is the xle. moving up and sitting up near the highest levels of the year. the other ones are the utility

etfs. very heavy volume. vpu and id u. these are the vanguard utility index index. down about 7%, people are getting out of them very big. volume has been heavy every day. the same with the bond etfs out there. the big kahunas, the vanguard total bond etf is almost $30 billion in this fund. all the way up and all the way down so far this year. that's a complete round trip. you see the bounce in the euro was a factor and the idea that the fed would be raising rates sooner than expected. finally, housing starts tomorrow, bill, and we're going to get building permits for january. the itb, there's the home builder etf. that's also at a new high for the year and the idea here being very simple here maybe the fed with market rates will be moving down mortgage rates moving down for the last couple months has been a big boon to them. i saw di arn thatanea olick today

talking about mortgage rates going up. rates going up so we see the bond yields moving up. >> you see some refi action move up as well as people expect rates to go higher. >> isn't it amazing, we still do refi stories now. we've done four refi stories in the last four years. every year they hit new bottoms. i think this is probably it though. >> thanks bob. i want to show you something. when kelly and are anchoring, you will see us look up once in a while to see what's going on. vinny, we didn't rehearse this. shoot the big board. that's what we call the new york stock exchange has the nickname the big board. there it is right there, upper left is the dow. that's what we're watching to see. right now with 12 minutes to go we're move back into negative territory with the dow down about 4 points. we'll see how we do as we continue on "the closing bell" for tuesday. stay tuned. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account.

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welcome back. nine minutes left. i hear there's $1.4 billion to sell on the close. that's a lot. a big imbalance to the downside. we saw some of that selling a few minutes ago, about you now we're starting to come back. the dow is up a fraction. s&p, any positive close will be an all-time high and the nasdaq is down 2 points right now.

joining me on the floor of the new york stock exchange sara keterror coming all the way from los angeles. >> that's right. >> coming back to the east coast here. are you inclined to go with those sectors that are doing so well right now or do you want to buy some things have been left behind and gpt themexpect them to play catch-up? >> that's a great question. this is the day for active management. this is the time. this is not the time to be in a broad market etf because now we really have to earn our fee. our causeway funds, all of our managers are scrambling to find stocks. the psych lick cle cyclicals have been left behind and they're the buying opportunities. >> like what 1234? >> industrials, financials. the key is income. you have to find companies with dividends not just today but have the prospect of greater dividend payoffs tomorrow and

there are a number of those. >> some people might say the strong dollar will kill some of those though. you will be hurt especially the multinationals in the cyclical areas. what you do you do with those? >> buy them oversea where is they benefit from the domestic currency. when you think about the world the causeway we think globally. >> and what about energy? would you dip your toe in this water yet? >> absolutely. >> would you? >> absolutely. and the key whenever there's a sell-off and we had one just -- we just recovered from it is trade up. so what we like to do as a portfolio management team is find the better companies. one in the u.s. we like very much a national oil. and here we have one of the best oil services companies trading at a massive discount to its peers with a potential to continue to reward shareholders through return of capital. >> you mentioned dividends. so many people come through here now and say the dividend play is too crowded, i'm not investing

so much for income i'm investing for growth right now. >> we are value managers. so we're looking for undervaluation and in the u.s. in technology, for example, qualcomm is very interesting. and here is a company that's said they're going to increase their payout going to actually payout more cash flow than they have done in the past and they've overcome their problem with the chinese or at least we believe they have. they're going to take advantage of this increase in 4g lte. their chip sets are ubiquitous. there are ways of getting access to dividends that aren't apparent today but active managers can find them for our clients. >> it's the growing dividend you're looking for. >> payouts can increase. that's what you want the prospect. >> i got it. we're going to come back with sarah. we'll get to the closing countdown, see if we can finish with an all-time high on the s&p especially. another awful winter hurting new england's economy but we found one snowplow company that's

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2:30 left and art cashin just came by. i mentioned earlier how he was saying there was about $1.4 billion in stock to sell on the close. that was the imbalance. a lot of that pared off. that will happen times.

now we have $200 million to sell as we go into the close, but right now we're moving higher. this is the dow today. we opened lower, and then we just turned higher in the afternoon session. we were getting close to an all-time high. we need to be at 18,053. so we're 15 points away from that but we're starting to move higher on the close. one thing we've been watching carefully, oil continues to move higher. wti comfortably above $50 a barrel right now, up 36 cents today to $53 while brent is at $62 or $63. as i was mentioning earlier, that spread continues to widen there, but we are marching higher. the stock of the period, what do you want to call it the day, the year whatever apple, everybody's darling. steve milunovich raised his price target to $150. we're at $127. the talk is whether or not apple becomes the first $1 trillion company out there, sarah ketterer. you're the value player. i can imagine apple is not on

your radar right now. >> it isn't but it's certainly one to watch -- >> wouldn't it be tempting? you know it's had an incredible run and the pipeline looks pretty good. >> absolutely. >> you're not buying this, are you? >> no i'm not. this is where owning a product cycle business is so important. as value investors at causeway we like to buy in a product cycle gap, when there is no new product. >> is there a tech company you can think of in the value company. you mentioned qualcomm. you like the dividend. >> mishtion softcrosoft would be in that area. emc and storage. they're all legacy tech companies transitioning into a cloud world. >> very good. sarah, thank you for joining us. so we're going out about 16 frounts points from an all-time high. a new all-time high for the s&p.

a lot more to come on the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kel. thank you, bill. welcome to "the closing bell," everybody. i'm kelly evans, and a big day on wall street. i mean we almost got there. take a look at how we're finishing up the session, in fact, because we were up we were down. we're going out with some small gains, but interestingly enough both the s&p and the nasdaq were waiting to see if they could close above some round numbers. 2,100 and 4,900 respectively in we're just about one point shy. for now we're also about ten points shy on the dow of a record high at 18,051. let's talk about it with the panel. joining me is kevin o'leary, dharn chairman of o'leary funds. our own kayla tausche is here as well. cnbc market analyst kenny polcari from o'neill securities will join us momentarily and "fast money" trader brian kelly is here to kick things off. good to see you, brian. so what's the deal?

markets don't care about greece or what? >> yeah i think -- certainly you would think that by the way you looked at the market today. i think what the market is pricing in is there's going to be some kind of a deal in greece, that the worst case scenario will be avoided. there is still some time left here for greece and europe to get together and there were indications today they actually may be getting closer to an extension at the very least which would implicate -- would imply that ultimately they're going to have a deal. >> at the same time these stories about what the european central bank might have to do if they decide grokeek banks are insolvent is a little troubling. we saw markets turn positive when crude was rallying. >> it's kind of a funny thing, oil is. because when oil was falling, everybody was saying this is great for the consumer and the stock market should rally. the inverse of that is if oil goes up, it can't be that great for the consumer yet the stock market is still rallying. somewhere in the middle is probably the answer but at the

very least what it does is it brings the energy sector up. it pulls up let's call it 20% of the s&p 500. it takes off the table some of those cap ex cuts. i shouldn't say takes off the table. reduces them a bit. >> we'll talk to magnum hunter in a moment about that. ceo gary evans will be joining us. welcoming in kenny off the floor today. there were a lot of sell orders on the close as well. like 1.5 billion at one point. >> it was all based around s&p 2100 at the end of the day. we see how the market struggled with it all day. we closed right on it. it will net net be a positive for the psyche. so we'll see what happens tomorrow. >> there were some people who it sounds like were ready to pull the trigger if we hit 2100. so round numbers do matter. >> to some extent. what does it really mean to anybody? it's just another round number. it's good because it's a whole number and it's great, so it's much more psychological than it means anything. >> what do you think when you hear s&p 2100?

>> we saw a reversal in the market midday and not only that but at the same time that equities started moving high we have seen a monster rally in yields. most everyone i talked to in the corporate finance world is watching what we have seen across the yield curve, not just the 10-year, not the 5s, not the 30s, but in a broad based way almost every single yield went up. people are saying like oil, have we now reached a point where we've gone as low as we can do and now we'll start to see some stabilization in the bond market, in the oil market? morgan stanley seems to believe we might have seen the worst of oil. a lot of people are reading that note as well. >> kevin, it's interesting. we had a guest earlier who was telling us -- i said we've moved 30 basis points he said no we moved 50. we moved from 1.65% to 2.15%. that's a huge move on a relative basis. what is your spidey sense telling but what happens next? >>. tuts me back in the camp where there's a 50/50 chance the fed adds 25 basis points in june. a lot of people after we had

weaker job numbers four or five months ago said okay we're going to push this whole thing right through to '16 and we won't have any rate hikes in 2015. i can't find anybody in that camp anymore. you have volatility in the forecast of what will happen to rates. if you're a bond investor it's fascinating to watch this kind of volatility in the 10-year. you can lose a lot of money being long going past 2 again in a matter of three weeks. i think people will start to go to the credits and look for xetion compression and spreads. higher oil is being translated into enhanced economic activity globally which speaks to higher and faster increases in rates. so this is all good for the market in the sense it speaks to instead of being depressed about politics, we're getting excited about the economy. and i like that. that's good for me as an equity investor. >> i think that's good but let's keep it in perspective. higher oil, we're still trading down 50% from the highs back over the summer. we're still trading at 53. a stabilization in oil i think is much more the story than

people -- like even brian said higher oil prices. higher -- let's be honest higher from where? from $45 maybe? but do we think it's going back to $80 or $90? >> inventories are still increasing. this may be short-lived this excitement about stable oil. there's a lot of oil around right now. >> i know. and summertime is coming and i think -- we're seeing rigs come off. so i think that situation is going to change. >> to this point, we'll talk a little more about oil specifically in just a second but it seems like to kevin's point the best thing that could happen right now is just for it to stabilize. you know we've fallen a lot so there's still going to be a tailwind to the consumer. it stabilizes here so we don't see the energy complex under quite as much pressure. is that your sense? >> yeah stabilization in both oil and rates is what you were just talking about, and that would be the best case scenario for stocks because, again, on rates you don't want them to go up too fast either because that chokes things off. if we could get just get a stabilization around this area everything for the u.s. stock

market should be okay. >> i don't know if we can look again at utilities year-to-date or sector board maybe of how things are behaving but the rate conversation, kayla, seems to be like the catalyst or the key thing that this all hangs on right now. all the sectors people have been piling into, the dividend plays they've been making. a great note about all the crazy things people have had to do to try to find yield. if yields are going to keep moving up all of that changes. >> all of that changes, and it's interesting because you're seeing a lot of companies that are rushing to the bond market to try to capitalize on what is perceived as potentially about lyly not a closing window but a window it could get more expensive to borrow. if you're an investor buying fixed income you want to get yield, but if rates move in one direction, then your prices are going to be falling and there's not really a case to be made for much income in that respect. so i think it's a double edged sword here. >> what i love about it kevin and i wonder should we all be paying attention to what companies are doing? they're all rushing before the window closes and yet nobody seems to want to buy a house.

just not interested. >> people really pushed away from credits in the last six months saying wow, i don't want to own anything that's corporate issued. i want to go government only. i have been rewarded year after year. that's all changed in the last six weeks. now people are saying the 10-year has killed me. i'm nervous it's going to go back to 2.5% and short duration corporate credits, 36 month, 24 month, you can make 4.5% 5%. i'm far more interested in that sector and i'm forced to be 50% in fixed income. >> you know why i asked you about housing. >> you know how i feel about housing. >> because you hate housing. i think this is your fault. i'm calling this the kevin o'leary problem in america. >> i begged you not to be in real estate but you wouldn't listen and now where are you? >> i feel pretty good about this rate. do you think we are talking about an environment where people will look back and say i should have gotten in. >> they can borrow 30-year money

for rates they won't see for a very long time. >> for years we've been told act now because rates are going to go up. nobody is acting -- >> and maybe that's right, but we're getting closer. like kevin said expect that the fed is going to -- the wording in the fed statement is going to be different giving them a wide open door to launch rates or start moving rates higher in june. i still think it's going to happen in the summer more like august. i don't think it's going to be 2016 but i don't necessarily think it's going to be june. >> you have the spring buying season for the housing sector and wagers goingwagers -- wages going in the right direction. you could see a little bit of a boost of consumers saying maybe it is time for me to jump in. >> we have some of these cross currents in some of the better real estate markets where some of the foreign money is coming out of it and they haven't been doing quite as well. maybe in other cases there's just not as much inventory in the market in the price segment

why most of america would typically be looking for. is there just a huge supply/demand imbalance in the housing market today? >> there's different pockets. if you look at new york city the high end, you're not going to have that russian money coming in the chinese buyer is probably not there anymore. when you look at houston, you're having weakness in that area. again, you have to separate the housing market. if you are buying a house to live in for the next 30 years, fantastic time to buy a home. if you are buying real estate because you think you're going to flip it to somebody, you're probably going to lose money. >> last question before we let you go then. what about real estate investment trusts? what about reits as they have been attracting money for so many reasons. maybe they're a recovery play an inflation play. what would you tell investors about reits? >> i think it's a difficult time. it's unclear where rates are going. i'm long the 30-year bond. i bought a couple days ago. coy be wrong that rates are going lower but i'm still in the

camp they are going lower. if the fed does not follow its own indicators that the economy is slowing and they decide to hike rates, then it's going to be a problem for these higher yielding names like reits and like some of the dividend players. >> yeah. we'll keep an eye on all of those and leave it there. brian kelly, thank you, sir. appreciate it. be sure to stick around and catch brian coming up with the "fast money" crew at 5:00. they'll be talking to the ceo of mgm resords. jim murren is on the pramogram. and as oil rallies, the question is whether oil has hit bottom. over the weekend jim cantore was covering the new england storm and witnessed several incidents of thundersnow. that's when a thunderstorm and a snowstorm meet. it doesn't happen all that often. you can see that's why he's so excited about this. coming up we're going to talk about just how much these storms have cost businesses in new england. you're watching cnbc, first in business worldwide.

let me talk to you about retirement. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable professional. i'm actually a dj. [ dance music plays ] woman: [laughs] no way! that really is you? if they're not a cfp pro you just don't know. cfp -- work with the highest standard.

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procedure for for the 415 and 628 area codes? no what is it? starting february 21, 2015 if you have a 415 or 628 number you'll need to dial... 1 plus the area code plus the phone number for all calls. okay, but what if i have a 415 number, and i'm calling a 415 number? you'll still need to dial... 1 plus the area code plus the phone number. so when in doubt, dial it out! welcome bangck. we begin earnings alerd. >> shares of fossil are down

pretty large 12% in the after market trade. fossil the accessories, watchmaker, retailer designer report earnings per share of $3. misses the average estimate of $3.07 per share. they also say that sales come in at $1.06 billion. that's light of the $1.12 billion that analysts were looking for here. fossil also says that they're forecasting for q1 results and 2015 full-year guidance on both profits and sales that are lighter than some analysts' expectations helping to contribute to the weakness. we will say though that they did announce them, fossil and kate spade a licensing deal where fossil would assume the watch business for kate spade new york brants. fossil and kate spade teaming up on watches but the balance of the results, both the earnings sales, and forecast leading to that sharp decline. you can see they're down about 13% right now after market. back over to you. >> and that is a 180 from their last quarter. wow. dom, thank you very much on

fossil. crude oil recovering losses today ending the day in the green. we're joined exclusively by gary evans and today's panel. gary, welcome back. good to see you. >> good to see you again. thanks for having me. >> let's begin with the discussion we were just having. is it your anticipation that the oil price stabilizes from here moves higher or moves lower? >> you know it's a question that everybody wants to know. on the good side the rig count has continued to drop every single week going on seven, eight weeks now down to close to 1,000 drilling rigs. the bad news is we have the highest oil inventory in storage since the 1930s. so we got too much oil, but the rig count is dropping. what is different this time is that the shale plays have a much more dramatic decline rate than the conventional wells of the past. so i think it will have some impact and hopefully we have stabilized. >> bringing in the panel here as

well. >> gary i want to ask you a question as an investor but through the eyes of a ceo in the oil sector. i'm watching this rig count decline almost 20% now. i'm going to assume it goes down to 600, okay? i want to be very conservative. but i haven't seep a commensurate decline in barrel production. it's actually going up so it must be that you guys are keeping your good productive wells open and shutting your crappy wells down -- >> no. >> so when do i actually see a deduction in flow because i'm getting really nervous in the next couple months there will be nowhere to put the next incremental barrel of oil. it will be valueless and worthless to me and the price will go into the 30s. that's my concern. >> you will see the drop. you have to understand the drilling rigs that are still out there drilling a lot of companies had contracts, one, two, five wells, six-month contracts. those contracts are coming off every week and that's why you're seeing the rig count drop so dramatically, but the production doesn't drop overnight. you know it takes about two, three months.

so you will sart seetart seeing it 345shg my words, especially in the shale play approximates. >> can you talk about the plays you're focusing on in terms of investment and production because it looks like utica and marcellus shale in ohio and west virginia, we're used to focusing about the dakotas. >> we made a decision to sell almost all of our oil properties. so the last year and a half to two years we've sold over 700 million of our oil properties when oil was around 100-plus dollars a barrel. we made a decision to focus totally on natural gas. we're 90% natural gas today. we believe that's the future for the u.s. and we obviously have more control of that. we think industrial demand chemical demand lng demand will continue to drive natural gas prices up and, of course with this tremendous cold weather, prices have been moving in the right direction over the last

week. >> well, now, let me just take a little bit of an issue with that. natural gas prices that was like the first piece of the oil collapse that's just happened. those prices have gone nowhere but down. do you still have confidence they will start moving higher over the medium term or are we seeing what could happen with oil where everybody keeps producing and the price never rebounds? >> what's changed is the shale place like the marcellus and utica, we've learned how to discover these reserves at 50 cents. so the fact that gas is $2.50 or $3, we're still making a 40-plus percent internal rate of return. so that's what's changed. years ago we needed $2 gas because our costs were $1. we needed $3 gas, $4 gasp so we've learned to operate in a lower commodity price environment. same thing is going to happen on oil. we'll continue to drive costs down and we'll be able to operate at $60 oil. >> is there an investment thesis that says gas and oil stocks will finally decouple? because they haven't yet. so if i want to go back into the

sector i'm way under weight now because i don't like what i see in pricing, i'm nervous about inventories. if i redeploy capital, should i buy the gas names like you and say at some point the markets will differentiate the equities right now. we hate both of you a lot. >> there's no question all of our stocks have been pummeled since thanksgiving. i don't know what kind of bad turkey we ate, but it wasn't good. i will tell you this the thing you need to look at. don't look at oil and don't look at gas. look at the rock. that's what it really boils down to. if you have really good rock and good oil plays or really good rock in good gas plays, you can make money at lower prices. it's the companies that don't have the core in the plays. you're on the outskirts of the play or on the fringes. so it really boils down to the quality of the rock. that's why we concentrated in the marcellus and utica on our leases. >> i didn't do that really in geology so i will take your word

for it gary. thank you for being here this afternoon. >> thank you. >> we'll be following along closely to see what happens. gary evans, ceo of magnum hunter. we have breaking news. johnson & johnson and boston scientific. >> announcing a settlement of a breach of merger lawsuit brought by j & j. under the terms of the agreement, boston scientific will make payments totally $600 million to j & j which had been seeking damages of as much as $7 billion. in turns j & j has agreed to permanently dismiss its action withoutage knowledgement of liability. >> quite a move. meg, thank you very much. spring is in the air. well, if you're a home builder maybe. up next, what's ahead for that sector. we're going to talk to a portfolio manager on the state of home loan lending as well. and it may be cold in the u.s. but the hollywood box office has been red hot this winter season.

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prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm. today u.s. home builder sentiment fell for the second straight month and there was a new report with more detail. it wasn't all bad news from the national association of home builders. diana olick joins us with some details. hi diana. >> reporter: hi kelly.

it was only because sentiment was better this year than last year. still, builders are blaming winter weather again but it's really cold hard fundamentals in play like price and supply. take a look. home builder sentiment slipped two points month to month on the survey but at 55 it's still in the positive and well above the 46 level of last february when builders were again blaming harsh winter but last year the slowdown continued to summer due to big price jumps. builder prices are still very high. in january the medium new home price was 43% higher than the median existing home price. builders still pushed the president's day open house this is past weekend. the unofficial start to the spring season. not much action though. the one thing that could push more buyers to new homes is a real lack of listings on the existing home side. but, again, builders are still pricing very high and housing starts are still well below demand. we get january starts numbers at 8:30 a.m. eastern tomorrow. now, adding to winter woes and

to higher prices interest rates moving higher again. just today in response to the jump in bond yields mortgage rates added an eighth of a point. we're only halfway through february and so far we've seen the biggest monthly rate bounce in six years. more online. reality check.cnbc.com. >> thank you diana olick. let's now bring in brad freelander, co-founder of angel capital. this will be interesting. welcome. we want to talk to you about the dynamics, in yes drum roll please, subprime. talk to us. subprime is making a comeback? what is that doing to the housing market or not doing as today's data suggests? >> thanks kelly. subprime as many knew it or with the negative connotations associated with it is not back necessarily. what is back is a gradual expansion of credit to deserving borrowers. you're beginning to see that happen once again. the pendulum had once overswung and now it's beginning to normalize. i think that warrants attention.

the only thing i would say is we speak and you hear about income inequality in the united states. barriers to the american dream. and here you're beginning to have now a capital market's response, a free market response, and a solution to that. so i think that's good to see, an expansion of credit. very gradual and in the very very early beginning stages now, but it's a good thing and i think it begins to open the door to first-time home buyers. that's a three to five-year story. >> it reminds me of structured finance. the things in the middle of the crisis everybody thought would be left for dead, moreibund zombies and they're coming back. i'm sure there are people whose heads are exploding going, wait a minute haven't we watched this movie before? >> the buzz word of securitization is one that makes a lot of people get the jitters, but i'm interested in hearing more from brad about we keep hearing that the banks' credit quality and the credit quality in the overall financial system

is good after the financial crisis, but the demand for lower credit borrowers doesn't go away it just gets pushed to other sources of credit and i'm wondering where you're seeing that credit popping up and from what type of institutions. >> yeah, you're seeing trf and ging interest and demand pick up in the subprime lending space, and then again, i mentioned this is very different than what you saw precrisis in 2005 2006. these are borrowers typically that may be putting down 20%, 30%, 40%, or even 50% and many of them have reserves. but, yes, you're right kayla, you're seeing the beginnings of subprime lending and other areas i would say even away from housing, areas like the auto lending market where you're seeing very different story there. >> and i know you're more concerned about the dynamics there, brad. but i first want to get kevin's response here. hear being the fact that subprime is basically back as he's saying these are borrowers who are able and willing to pay

those down payments, you know be a different level of credit quality than we might have seen in the past. just what's your take? >> as a fixed income investor, i'm watching this as the fastest growing segment of the lending market. brad made reference to nonhousing subprime. there are companies like iou central which is a "shark tank" deal where you can go online and say i'm running a grocery and i need to borrow $5,000 tomorrow morning and do it at a subprime level and yet banks -- >> subprime is not an evil word. it's a healthy part of the capital market? >> you will pay a lot more than a ten-year rate. brad, what are these loans going at, 11%? >> many of them are sub 10%. could be several hundred basis points above that number we just spoke about for the average 30-year fixed rate across the country. >> just a word kenny before we go. >> i was going to say, if these people are qualified, they're putting down 30%, 40%, why are

they considered subprime? >> that's potentially a misnomer and that's the point. ben bernanke may have been considered subprime in some ways because of an inability to prove predictable income streams. it's amazing how this is connected. i mentioned this is different than in the past. in the past subprime may have meant 500 to 600 type of a fico score. now it's almost anything sub 700. you're talking 660, 670, 680 and that's outside of this irrational box that the banks are lending at. >> that's why it's so interesting to hear about what's really going on out there now in this space which has clearly made a comeback. you're at the forefront of it. thanks for being here. >> my pleasure. >> co-founder of angel oak capital, more than $4 billion in aum. snow, snow and more snow. we will take a look at the impact the storms are having on boston's businesses but first a news update with courtney reagan. >> here is what's happening at this hour. drone on. the state department says it has

established new policies for international sales for u.s. military and commercial drones allowing them under strict conditions. the u.s. and cuba will hold a second round of talks in washington next week aimed at restoring diplomatic relations. democratic senators visiting havana said there may be enough support among republicans to lift the trade embargo. and prime minister benjamin netanyahu has been taken to task by his israeli government auditors over his living and hospitality expenses calling them exorbitant. he denounced the report calling it a distraction. and carnegie mellon university is apologizing after mistakenly telling about 800 applicants they got into a graduate computer science program. one applicant said he learned of the retraction after going out to dinner with his family to celebrate. jim cramer talks live with david steiner at 6:00 p.m. eastern time on cnbc. that's the news happening at this hour. "the closing bell" returns after this quick break.

the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. jim cramer talks live with david

oh yes, yes, yes! we got it, baby! we got it! oh, again, again! that's a two-fer!

that's a two-fer! baby. yes, again! you got to be kidding me. you got to be kidding me! >> that was the weather channel's jim cantore. so excited about the thundersnow in massachusetts over the weekend. i love that. if boston gets just one more foot of the white stuff, it will be the snowiest winter in the city's history but for one small business owner, that's not necessarily a bad thing. kate rogers has the story of one man who is turning snowbanks into cash piles. hi, kate. >> that's right. the boston winter that won't seem to quit actually welcome news to some small businesses like this snow services in sotomayor end.-- south end. they actually live for blizzard. but a mild beginning to winter had them concerned. >> everybody in the snow business when it doesn't snow they all get depressed. so we had quite a dry november and december which is unusual, and most of january was very --

you know there really wasn't much snow. then all of a sudden you get hit with a one-two punch. >> in a typical season ippolito will bring in $150,000 but in the past four weeks they were nearing the $400,000 mark and that was before the latest storm hit. in fact, business has been so good for the snow removal company they have stopped taking on new clients. ippolito told me they are investing the additional revenue back into the business purchasing equipment that would have taken them three years to save for. now, other small businesses in the area namely restaurants and retailers, tell me they're losing cash quickly and can't afford to get hit with another storm. let's hope they don't. back to you. >> that's the flip side of it. kate, thank you very much. the snow as she mentioned isn't making everyone happy. let's got the big picture on what it means for the local economy. joining us is shirley, a columnist at "the boston globe."

i was shocked to learn it could be the snowiest winter boston has had. is there a sense as to what the economic toll has been? >> right now economists say that the region has lost probably $1 billion, you know, due to lost productivity, so transport delays to missed days at work. it could affect our economy by a single percentage point in the first quarter of 2015. it's a big deal here. commuters, our train system the public transit system isn't working properly. it's shut down at least twice. there are hours of delay today. so people are frustrated. people are really sick of the snow. >> it's funny you say that because i was going to ask the panel here one of the things that people when they look at the declining population of connecticut, for example wonder is what a bad winter does to get people just so fed up they leave the state. kevin, are you hanging on? are you staying in boston? >> i have had a home in boston since '95. i'm on marlborough street.

the night this all started was the night the pats won the super bowl was our first storm. i was walking back from our annual party after celebrating the victory and i looked at the sky and went whoa. it was really coming down. the next morning the airport was closed. since then it's been a nightmare. i no longer have a parking spot in my back alley. the people who tried to maintain it just e-mailed me and said we give up we can't help you. there's nowhere to put the snow. >> that's the concern, not what any one storm in a local economy might do but the fact in today's day and age it drives people out of the area all together and you forgo that income or growth down the road. >> i think you live in this area, you know what you're getting into to a certain extent. you buy the boots and the coat. if you run a business you alert your customers if you don't open and figure out how to get funding or help from the government that you possibly can. i think where the issues are really, municipal budgets. there's this follow folkloric

number. >> are there any programs that have cropped up to help businesses that are suddenly facing a cash crunch deal with that? >> i haven't seen a whole lot of that happening. everything -- i feel like the city and the state have kind of been in crisis mode since the last week of january. everybody is doing everything they can to clear the snow and, you know, the snowbanks here are six feet ten feet high. it's dangerous driving around the city. sometimes when you hear the mayor talk about the snow it almost sounds like he wants us to avoid the city until march. that's when maybe it will be manageable. you can't -- the parking garages are full. you can't get in -- it's very difficult to get in by public transportation, and the traffic is horrible because people don't trust the public transportation so they're all getting in their cars and then the snowbanks make it more difficult to drive.

so everybody's commute is -- there are hours added to everybody's commute. people are -- people are incredibly frustrated here. >> just a word on this as well about the preparation that anybody, whether they're a mayor or a governor or a local business, should be doing if they're facing this situation. is it better to be super proactive ahead of time and try to put everything down or better to take your licks and see what happens and try to get through it? >> i think you have to be careful about running really quickly to shut everything down. we saw what happened in new york when de blasio shut it down and we got nothing, right? boston has gotten so sit over the last three or four weeks, that that's almost been an impossible situation. whether you're prepared for it or not. it's still snowing there today. it just keeps coming. >> let me hit you with a theory about why it's so quiet and volumes are low. my theory is that we in boston manage trillions of dollars. the fidelities the putnams, the hedge guys. we're not at work. we're at home.

>> someone was selling on the close today. that's all i know. >> do you really think that that's true in places like fidelity in boston or wellington that they're sitting home and no one is trading? >> i'm not saying no one is trading, but if you look at the incremental people that are not in the office that think they can do it from home, particularly the fixed income guys i work with they're not coming in from wellesley. they've given it up and their kids are at home too. >> shirley, thank you for joining us. >> thank you for having me. >> trying to get a sense of the fallout from this massive amount of snow. people have called them safety concerns, but could drones be big job creators and boost the economy? coming up we'll hear from one chief executive who says the drone industry could create more than 100,000 jobs. and the 2014 box office numbers will not be earning a star on the hollywood walk of fame. but why moviegoers are back out in force and it's not just that

"fifty shades of grey" opening weekend. we're back in two. financial noise financial noise financial noise

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would already be up and running. how important is it for you to get the ear of washington over to your cause? >> it's what we do here. it's an extremely important moment for the industry very very important milestone that we had this weekend when the proposed rules came out, and we're generally very pleased. there's still some work to be done before we finalize those rules, and it's just the beginning of what i expect to be a lengthy process. >> should the "a" in your group just stand for amazon? who is funding you? who is behind all this? >> well we have 7,500 members. it's an international group. 600 are corporate members and we're surrounded by a number of industry that is want to utilize this technology. it's a very very large community. amazon is included. >> wow, 7,500. kenny? >> so you are in agreement with what happened over the weekend with the faa? >> yes. we have been waiting for the rule for quite some time i should say the proposed rule. it's fairly favorable in terms of the initial stages of what we need to do.

there's a tremendous amount of economic activity and benefit that gets unlocked when we can fly under 500 feet line of sight, away from people. you've got agricultural, you've got moviemaking, you've got inspecting high electricity lines and so forth. there's a lot that can be done with that but there's more coming after that. >> brian, what inning are we in in terms of the innovation and the technology around these drones because i think the big fear is that the faa isn't wrong to regulate and perhaps regulate strictly but why regulate a space where we haven't seen what the technology can do the various applications of the technology and no one really talks about the government as a flexible enterprise but the government and the faa ostensibly would have to go back and rewrite these year after year when the technology evolves. >> we're hoping that's not going to be required. again, for the first tranche of this where we're flying under 500 feet for example, i think

we're going to prove a lot of technology. the technology as you point out, is advancing very very rapidly. so we can get this going and as faaed a faa administrator 15idsaid over the weekend, there are things going on on. >> will you promise me a drone is not going to hit my plane the next time i'm on it? >> we have a know before you fly campaign that we're trying to educate people about that right now. the biggest challenge we have is just getting the word out, situational awareness. >> thanks for joining us brian. hope we see you again. brian wynn is the ceo of the association for unmanned vehicle systems international. let's get out to dominic chu for an update. >> here we have not an earnings but a 13f flash. we're still whale watching. it's berkshire hathaway. some interesting moves coming out of the regulatory filing. new position changes aez of december 31st.

the big headline ibm. the shares lost about 17% of value in the fourth quarter. well warren buffett added to his position in ibm boosting his position by about 9% to 77 million shares of ibm stock. also charter communications a 25% boost to their stake there to about 6.2 million shares. that's about a billion dollar position. also looking at some of the new holdings they've put on here. they have put on new positions in deere, about a 17 million share position worth $1.5 billion. also 21st century fox, a new position there of about 4.7 million shares. and then some notable complete dissolutions. warren buffett has gotten complete of conocophillips. it was a smaller position there, about $33 million, but also completely out of his position in exxonmobil. that is about a $3.8 billion position that was dissolved completely. they sold all 41 million shares during that quarter.

so again, boosted stakes in ibm and charter. gotten rid of completely conoco fill limbsphillips and exxon and added positions to 21 tion centst century fox and deere and company. >> dom, thank you. just quickly looking to the panel. kevin, back to your point about worries around the energy space. what you don't want to see if you're a bull in the space is a guy like warren buffett, i would think, jumping out of exxon -- >> that's the surprise to me. he's a value yield investor. i would have thought a contrarian view when i saw the name flash up i thought we were going to hear the news he piled in. he's exiting because he's probably in the camp and i'm speculating with everybody else that says we have not seen the bottom in oil. >> but he added to his stake in ibm which i think is the most surprising. ibm underperformed exxon which he's exiting last year. that does show that he is standing behind the turn around plan. that's something investors have

been questioning. >> the headline for anybody looking to get into the energy space might be warren buffett just put more money into ibm than he did in exxon and conocophillips which he exited altogether. there's more in line. call it 50 shades of green. audience are flocking to theaters to the tune of a record $94 million for opening weekend for "fifty shades of grey." we'll break down the box office boom next. tun into "the closing bell" tomorrow. i'm be joined by the ceo of angie's list to talk earnings and get his take on the consumer. continue mz it. ss it.

welcome back. "5 "50 shades of grey" raking in bills this weekend. not the only boost the industry has gotten so far this weekend. julia boorstin joins us to break down pretty high box office numbers. >> "50 shades of grey" $94 million u.s. gross, a february record in one of the biggest r-rated movie openings ever. it's a big win for comcast universal which spent $40 million to make the movie as well as a win for theater chains including ixe inging imax.

overall u.s. box office is at more than 10% this year from where it was at the same time last year. this disproves the hollywood assumption that the beginning of the year is generally a dead zone for movies. and it shows the power of lower budget and r-rated movies to break out. especially when there's controversial. as there was with "50 shades" and the other surprise blockbuster warner bros' "american sniper" which grossed $400 million worldwide on a budget of less than $60 million. with storms keeping much of the east coast inside families have flocked to "sponge bob." just two weekends grossing over $100 million in the u.s. alone. kelly, one reason credited for the success of "50 shades" and "american sniper" is the fact people took to social media to debate it and weigh in. back over to you. >> that's our julia boorstin. did you see any of these movies? >> "american sniper." i have no interest in watching "50 shades." is julia still on?

>> we lost her. >> i'd see "american sniper" again. "50 shades" -- >> your secret is safe with us. >> it's all about the porn that's what it's all about. >> mommy porn. >> that's what it's about. >> i'm blushing already. no, but it is a high box office, i wonder is it because of the particular movie selection? it was 2014 the outlier? there were trend stories written about how that was the demise of the box office for good. >> i'm with kenny. i didn't see "50 shades." the only one who saw it in my family was my daughter. she said it sucked, it was terrible. they shot three at the same time which was astute of them to do that. they will definitely bring this movie two more times. so if you hated the first one, you're going to hate it two more times. >> still a good investment then kayla? is that the idea that "american sniper," "35050 shades" proved you

don't have to do the tenth remake of a franchise to get people into the theater? >> "50 shades" is a franchise. the bet of shooting them all together and having the budget wrapped into one is a good decision. i love "the new york times" interviewing people at the theater and a lot of people were there out of obligation to their significant others or sheer curiosity. >> it's curiosity. come on. >> we'll see what falls more quickly, oil rig production or interest in "50 shades of grey." it's another busy week for earnings. we are going gelt ruts from consumer-driven names. two big names in retail. walmart and nordstrom reporting on thursday. what will those numbers reveal about the economy and the consumer? the panel next. stay with us.

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welcome back. we really get into gear later today on the earnings front. the retail front we get walmart and nordstrom thursday guys. that sounds like it will be the biggest day. john deere friday could be interesting as well. which will you be focused on? >> walmart. it goes right to the heart of the american consumers. >> think it's going to be a good or bad story? >> you know, i'm not sure. i'm hoping a good story. >> kayla? >> i'm also watching walmart. i'm particularly interest in the e-commerce numbers from the holiday season. that was a surprise to the negative. wall street really underestimated how much it would do online versus in the stores.

hopefully they have their estimates recalibrated. >> are you shopping at walmart? >> i'm watching walmart. i anticipate making the number on earnings but missing a little bit on top line. we haven't seen the effect of low energy input cost to the american consumers'. walmart will be the index. >> obviously nordstrom on the other end is supposed to reflect the continued strength of the somewhat more aspirational shopper. that could be full of surprises. after fossil today, who knows what's going to happen. we'll leave it there. thank you so much for joining us this afternoon. lot of fun. "fast money" is coming up in a few seconds with melissa lee and the gang. >> kelly. you mentioned mgm today. the ceo talked about converting assets into a reit. we have the ceo on tonight. we're going to ask him about that potential plan. >> we were asking brian kelly about the reit question earlier. a lot of investors have this on mind melissa. >> exactly. all right. thanks kelly.

"fast money" starts now. live from the nasdaq market site overlooking times square traders tonight, pete najarian karen finerman guy adami. no reports of an i-car coming an apple car could be the iphone of the future. he'll explain. go pro going higher soaring 12% today despite the lockup expiration. is it too late to buy into this stock? we'll debate it. first, our top story, a little bit of greece. reports greece will ask for a bailout extension tomorrow. the current bailout plan scheduled to expire at the end of the month. repayments ss come due in march. headlines driving the