>> tonight talking about his new social platform. thanks so much for watching "power lunch." "closing bell" starts right now. >> hi, everybody, welcome to the "closing bell", i'm kelly evans. >> conco phillips to cut its dividend. which other names could follow suit. and the rise of the robo adviser, mike santoli will join us with a special report on how they are dealing with the rise of the machines in this investment world. >> also ahead, duncan brands store sales are slipping. the ceo will join us to discuss whether mcdonald's all day breakfast is eating big time now into his customer base. >> in many ways the story of the day, martin shkreli pleaded the

fifth at the hearing but his attorney had a few words for the press. >> all of the facts about during or ultimately disclosed, everyone will recognize that mr. shkreli is not a villain but at the end of the story is a hero. >> ben brafman will join us in the next hour. let's start with conoco phillips, morgan has more. >> slashing its quarterly payout by two thirds, the first major oil company to do this. and while the yield has soared to 8%, the move came faster than expected, the reason really the stock is sinking today at a time when oil majors like exxon and bp and shell continue to defend their dividends this could be seen as a harbinger if crude

stays lower for longer. some suggest royal dutch shell could be next. despite statements to the contrary this morning and chevron's promise through 2017 has also been questioned as well. but this issue is really affecting the overall energy sector as equity prices dropped and dividend yields jump, averaging 4% after recently hitting the highest level since at least 2000, and in light of that data, some names that could be ripe for a reset. williams companies which yields 14%, oneok and murphy oil and national oilwell varco. at least for now analysts are worrying that energy stocks that have yields over 6% might best be approached with caution. >> although, morgan, many would defend the dividends to the death. that's the reason you invest in

thoo stheez stocks. if you've see how they've fallen it's nor near as bad as others. >> with conoco through the last earnings call back in the fall, they were defending adamantly defending their dividend and increasing their dividend as recently as last summer. >> morgan, thank you. we'll have much more coming up. a lot of investors concerned about this one and all of the names in the energy complex. >> credit suisse down 11%. a black eye for the european banks, kayla has the details. >> it seems the head lines get worse for every bank overseas that reports earnings, today was credit suisse's day in the spotlight, a full day loss for first time since the financial crisis and shares touched the lowest point since 1992.

the bank took a $4 billion charge from good will related to the acquisition of donald's and luf gen but the reason they are writing it down now, they are now shifting away from investment banking. to that end, it will cut about 4,000 jobs but even as the st y strategy gets reset, elevated legal costs and asia stabilizing. analysts think this might be an ambitious turnaround plan and that comes with a new ceo. it's a little late in the game. credit suisse has lost three years compared to peer ubs. there are no many arguments to buy credit suisse given the restructuring miss. but the ceo disagreed this morning. he said buy the banks. >> global banks, systemic important banks, raised $4 trillion of additional capital. we're in a different place. there's no scenario where the banking sector --

>> of course, part of that is because governments are such large shareholders backing these banks but investors are asking whether that capital he was referencing for the european banks is enough to cover what seem to be mounting legal bills and piles and piles of loans going bad that are just now getting written down. credit default swaps which rise when the debt gets risky, skyrocketed again today. still below the 2011 levels they hit during the sovereign debt crisis but up dramatically from business as usual. that continues to be an indicator that analysts are watching. be wear of the end of the month, with every single one of the banks that report, we see how the lengthening recession in europe is hurting them as well as the lack of quality of these loans. we have all of the uk banks reporting at the end of the month and beginning of march. they have new executives at the helm too and could possibly see large write-downs as well. >> in this case, credit suisse and what happened there, connects back to what morgan was

telling us about conoco phillips, you look what else the ceo had to say, they had to take huge market to market write downs because of credit exposure, that's why it comes back to the oil price every day. they had one of the worst years of all time. i'm not sure what the investment case is for a bank like credit suisse. especially now given the performance here amid the plunge in oil prices. >> and write-downs look small for the u.s. banks in comparison a couple of weeks ago we were talking about what they were writing down in relation to oil and gas portfolios, that's pennies compared to what we're seeing european banks write down. when we talk about the lack of a bold case for stocks, it's worth noting, there was a report that came out that showed sof ren wealth funds, 45% of sovereign wealth fund shares are in the financial sector. as oil craters and the sovereign wealth funds need to shore up cost, they'll be selling the

banks first. >> one of the big write-downs is from the desire in the past to be a bigger player on wall street. the most interesting thing is the wealth management operation and the fact that that is looking relatively sick there like, sick is probably the wrong expression, having outflow, substantial outflows in exactly the same way as ubs did. this was supposed to be the safe area of the new banking world. >> for credit suisse and ubs, same story and you're right, they were supposed to be relatively stable assets for these banks and we thought that because the european central bank was pumping money into the system that would stabilize it and some level of client confidence to keep the money there and we have seen two data points that is not the case. >> thank you for now. keeping a close eye on banks, european and american here too. let's talk more about it with our closing bell exchange. we have mark here from russell investments and steven gil gs foil from deep value and rick

santelli. how much of a regime shift has there been in global markets in the last couple of sessions? >> i think significant. the weaker dollar is the driver of everything, it's the rejection of federal reserve direction. and the weaker dollar leads to stronger commodities, not seeing that in oil today. but you're seeing in other dollar denominated commodities and that's giving the transports a boost and industrials a boost and materials. >> the dollar downward the last couple of sessions has been so sharp. are we to believe it's a permanent and lasting one or just a bit of unwind? >> i think it's lasting. i think with all of the macro we've seen, it's been atrocious, the macro we saw today was especially atrocious, bad for future jobs data. we're probably going to go to an area where it's tougher to get a job and keep your job. that said the fed is almost going to force a recession if they raise the rate again within

the next six months. >> they should raise rates for the sake of the banks but that's beside -- mark, what is your view on the dollar? 3% for the week? a huge loss overall. in some instances that's good, surely. overcrowded trade, it's good for multinationals for it to come down and good for the commodity producers. there's a huge silver lining here, isn't there? >> there's always five reasons why strong currency is good and five reasons why a weaker currency is good. we would agree with you, it's a trade everyone has been in. we do not see much appreciation in the dollar even you would think if the u.s. is starting the process of raising rates and nobody else is and everybody else is doing so much easing that should be good for the dollar. but 18 months versus a basket of securities and other currencies, we think the dollar already had its run and on the edges migts appreciate through the year, we're not in the camp you get a

stronger dollar this year. >> we're seeing big moves in terms of shifts on wall street. goldman said it no longer expects another rate hike in march. rick, a lot of moves we're seeing in financial markets does seem to be predicated on the view that the fed is shifting course. i guess we have janet yettllen' testimony before congress -- >> i doubt you know when she testifies, you'll know in march. steve, if the fed never touched rates in december, mid-december, that atrocious data you pointed out, durable goods and productivity, year of gdp at 1.8, you really think if they did nothing we would be in avoidance of arecession? listen, i don't talk about the fundamentals as often as i use to because of the question just asked but the fundamentals and the economy long in the tooth,

globally and domestically are going to have a recession in my opinion whenever it occurs, no matter what the fed does. but normalization is still important but the rest of the world is clawing its way back to more stimulus. the fed is in a bind and finally on the question on the dollar, technically it looks like it's topped for a while but however, back to the same argument, if the fed had any indication of raising the march, any doubt in anybody's mind it would have a second life? i have to say that the most insane variables are putting pressure on the dollar down. all of the currencies, yen, euro, used in a variety of structures because of the glo l globalglobal liquidity is coming back to push it higher and do everything to weaken it. which tells me at the end that all of this exercise is wasting 'lot of good efforts when the central bank could actually be targeting what ails the

economies. >> a word, mr. guilfoyle? >> i am an austrian style economist and i think the fed missed their window by about a year. >> exactly. >> it wasn't quarter point raised, but it was the signal of four increases that rattled a lot of cages at a time when macro was weakening. >> you think the durable goods and productivity and gdp for the entire year would have been different if they put their dots in a different colored crayon? >> absolutely not. if they raised rates when i suggested they raise rates -- >> i agree with you but still say the outcome would have been the same. >> let's everybody just remember that wasn't about the december rate hike, tightening going on two years. >> yes, yes. >> maybe tesla holders would agree -- it's 40% off its highs, the canary in the coal mine? >> tesla? >> i said tesla's 40% off its

high. tesla. >> all right. >> who knew. tesla, the etf for fed policy. >> thank you all. rick santelli. >> the dow -- the indexes are relatively flat. it is effectively the last chance to get major positions in before tomorrow's employment reports. >> coming up, the video of the day, martin shkreli, meg will have the highlights and speak wi ben brafman who called his client a hero. duncan dough nuts taking a hit as mcdonald's launches the breakfast program. what he will do to beat back the competition. you're watching cnbc, first in business worldwide.

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welcome back, a rally day

for has bro and mattel today. hasbro makes "star wars" toys and my little pony. cnbc reached out to both companies today for comment. >> for a bigger move, shares of dunkin brands and baskinrob bins moved higher after a beat on the top and bottom lines. >> and also revealed a decline of 1% in same store sales and traffic at its u.s. locations, joining us now for more on a first on cnbc interview, nigel travis. the breakfast wars are hotting up, aren't they? what are you going to do now that mcdonald's has all day breakfast sandwiches and got some traction back and you guys rolled out breakfast products recently too. what are you doing to maintain and grow share here? >> well, we're the ultimate all day breakfast facility kelly.

we've had it for many years. 24 hours a day in many of our locations, we have the whole menu all day, not a limited menu, but let me talk about that decline in comps. it was principlely by the fact we were on a long term decline in k-cup sale, being sold in grocery stores, not just our brands but other brands, has been a migration there. we jumped on that. the net result for the year is we actually got as a result of our growth in development, our gross in grocery stores and comps which for the year were 1.8%, they were positive, pull that all together and we got 360 million more cups of coffee into people's mouths. >> fair enough. you know, by the way, it's no guarantee that k-cups will be the hot new product forever as we follow the manufacturer of those products closely too.

but we just showed the share price for dunkin over the fast 52 beeweeks, down 8%. what more can you do to really help folk us the attention of the american public and investment community back on what dunkin has to offer here. >> okay, great question, kelly. and we have a 5-point plan. we went out with our franchisees and talked about the issues in the third quarter and fourth quarter. we had very honest conversations and got very strong buy-in, which is important. we got a five-point plan which in summary is focused on coffee and innovation and value and smart pricing and digital and improving the store experience. they all buy into that. it's a plan that focused not just on 2016, but years beyond that. we're excited about the plan and

it's a way of driving customers into our store through value, but at the same time giving the opportunity to take our premium products, our macchiato and croissants doughnuts and our plan is good and i feel confident in it and i think the analysts felt good about it as well. >> you reminds me of an english actor but it escapes me which one. in the meantime, it's interesting that you see you had honest conversations with the franchisees, i'm assuming they wrnlt happy. i wonder the extent to which mcdonald's caught you by surprise on the scale in which it moved into all day breakfast. you've got 14 new products annually that you're introducing here. delivery is in test, i guess the bigger question than that, can you really take it at market, which is what you appear to be

saying? >> simon, the answer to your question was michael caine. >> whoever was in pirates but i'll come back -- >> daniel craig? >> no. >> mcdonald's did not catch us by surprise, we've analyzed what mcdonald's all day breakfast did to our breakfast, it was a small amount. what has happened and in many ways the analysis was a surprise to us, we looked at what's happened to the burger chains, all losing store count. if i put the top three chains together, lost 165 stores last year. so they need to focus on comps, we have the opportunity to drive comps to drive development and drive consumer products. they don't have that revenue drive three-some. they have one so they put all of the focus on to driving comps. in terms of where we're going, we're not going up market. we've always been known for both value and quality products. we're right in the middle.

we're going to stay in the middle. we're going to be a little more aggressive with our marketing but as you say, simon, you bring those things together, we're going to make dunkin' donuts more to consumers and on the go ordering that will speed up the lines in the morning and give our customers much more convenience because all they have to do is press one button. >> take us real quick, as closely as you can between the falling price at the pump for most american consumers and boost you see from that or is the weakness in energy parts of this country offsetting that? >> so, let me take the second part first. we've got very few stores in -- if you like the energy areas in the country. i did read probably the same article you read, that's really not impacted us but we're concerned about the people who live in these energy areas in

texas. and in terms of the pump prices we've looked at this year in and year out and we don't see any real correlation -- >> no correlation at all? >> no. and -- >> high prices don't impact people? $4 gasoline didn't impact people? >> what we find is we have such frequency that people come to dunk inanyway and what they have in this country is people who take gas prices and saving the money and "new york times" reported that in december, it was the highest amount of saving for many years. on the other side you've got full employment, our franchisees complain about -- dunkin' donuts is right in the center and the new five-point plan we all agreed -- back on simon's point,

no difference with franchisees, we're all on the same page, moving together and by moving together, this will be a sustainable plan. >> you do sound like michael caine but it was bill nye i was thinking of. if that helps at all, i much younger version. >> simon, i'm a bill older than you may think but -- >> michael caine is 82. >> i'm 66 but -- >> wow. >> i'll have to try and recognize your accent as well. >> i'm going to start eating dunkin' donuts if you can look that good at that age. thank you so much. >> breaking news out of the white house. we're just talking about gas prices, well, get a load of this. the white house proposing a -- >> as part of a new plan being released right now by the obama administration part of their 21st century clean transportation system proposal

that will be part of the president's budget plan for this year, as part of paying for all of the transportation improvements that the white house would like to do, they are saying that they are proposing a new $10 per barrel fee on oil that would be paid by oil companies, which would be gradually phased in over five years. the obama administration says that money and some other money that they are proposing raising would be used to pay for improvements in transportation systems, including $20 billion per year above current spending to reduce traffic and provide new ways for families to get to work and school. investing roughly $10 billion per year to transform regional transportation systems by shifting how local and state governments plan and design and implement new projects and also they say accelerating the safe integration of autonomous vehicles. a lot of new spending being proposed by the obama administration to be financed in

part by the $10 per barrel fee paid by oil companies. whether any of this can get through a republican controlled congress though is not a sure bet. >> that's exactly -- we have to go shall what i was going to ask. what's the likelihood that something like this, given the state of energy companies would be passed to the consumer i'm sure. what is the likely of this becoming law? >> i think you would say near zero but, something like zero. >> get them on the newsline. >> i mean, we should -- >> the team should. >> call us. >> 30 minutes to go here into the close. i mentioned we're in rally mode but it's kind of like what we saw yesterday, the dow is up 46 points, but the s&p 500 is negative by a point. and nasdaq down 4 points. >> up next on the program, martin shkreli, the former executive, evasive, grinning and

smirking at the capitol hill hearing this morning. it was truly jaw-dropping television. we'll have highlights next and tell you what happened after this. and later we'll speak exclusively with shkreli's attorney who calls his clients a hero. he'll make his case next hour. stay tuned.

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martin shkreli pleading the fifth at the congressional hearing on drug prices, meg terrell was on capitol hill and

brings us more on a confrontation and what could be called the bizarre events that played out. >> bizarre is a good word. 26s a colorful hearing. representatives from val yant and fda and other places, he stole the show even as they didn't say anything. take a look at this. >> do you wish to make a opening statement? on advice of counsel i will not be giving an opening statement. on the advice of counsel i invoke the fifth amendment privilege and decline to answer your question. i intend to follow the vice of counsel, not yours on the advice of counsel i invoke the fifth amendment privilege and respectly decline to answer your questions. >> we'll pause for a moment as mr. shkreli is escorted out. >> almost seems he's reveling in being able to invoke the fifth amendment right. he has been charged in a second federal case with securities

fraud and the representatives tried repeatedly to get him to answer questions. listen to one interaction with trey gowdy earlier today? >> is this pronounced shkreli? >> yes, sir. >> see, there you can answer some questions. that one didn't incriminate you. i just want to make you are you understand, you are welcome to answer questions and not all of your answers are going to subject you to incrimination. you understand that, don't you? >> i intend to follow the advice of counsel, not yours. >> this is a great opportunity if you want to educate the members of congress about drug pricing or what you call the fictitious case against you or we can even talk about the purchase of -- wu tang clan, is that the name of the album? >> on the advice of counsel

invoke my fifth amendment privilege and respectfully decline to answer your question. >> so his facial expressions were garnering a lot of attention and congressman saying they never saw such rudeness in a hearing before. after he was excused from the hearing, his lawyer ben brafman answered a few brief questions if the hallway, attributing his reactions to nervous energy. here's something brafman said. >> the only regrets he has is in the unfair treatment he has received and some of the things he may have said in response that maybe were not well thought out but he's 32 years old and not a lawyer, he's a scientist and he was angry at times and some of the things he said may have sounded bad and they have fueled this inquiry. >> now, brafman coming out as you said earlier at the end of this he think shkreli will come out as a hero. he has told shkreli he can no longer talk to the press.

that didn't stop shkreli from tweeting minutes after he left the hearing saying it's hard to accept that these imbeciles represent the people in our government. >> that's one extra piece of information that i think was worth adding and the attorney said this afterwards, they told him he would plead the fifth. and they still insisted he came before them. that then completes the picture. it's difficult to like the guy but it partly explains where he might be coming from i think in that. >> we'll ask brafman about that too, to what extent he thought he was going to be taken advantage of in those circumstance. for now, thank you. as mentioned shkreli's attorney ben brafman will speak with us exclusively in the next hour of the show and we'll ask about this and much more. >> the interview of the day i think. >> certainly the event of the day this morning. >> with the dow up 45 points, let's get a cnbc news update. >> here's what's happening at this hour, a new batch of u.s.

made f-16 fighter jets has arrived at one of iraq's air bases north of baghdad. in january the state department approved a potential $1.5 billion sale of weapons and mu igss and equipment to iraq. more weapons are expected to arrive throughout the year. brazil's president said today that she's spoken with president obama about working together to develop a vaccine for the zika virus. u.s. experts are expected to travel to brazil next week to work on a timeline for the vaccine. the who declared it a global health emergency this week. the virus can cause brain damage in children. officials in california say el nino is helping drought conditions. they say if the storms continue to hit the state, they may be able to ease drought restrictions by the spring. the head of the state water control board says she believes the state has turned a corner on the drought. meanwhile, back here in the east, the warmer than normal weather is confusing the maple trees. experts satisfy the temperatures have triggered the maple sap to

start flowing, launching an early syrup season. early sap can have lower sugar content which in turn means it make more sap to make the syrup. vermont syrup goes for about $49 a gallon. you're up to date -- >> i thought that was the whole foods price -- >> i was stunned considering the fact that gas is going for about $2 a gallon, maple syrup, almost 40 bucks a gallon. >> you wouldn't want a frost on that, that would be bad for the trunks. >> absolutely. >> we have 25 minutes to trade and up 30 on dow. tomorrow is the employment report. last positions, please, ladies and gentlemen. >> financial stocks have been lagging this year coming up the top money manager has three bank names you may want to add now to your portfolio. we'll speak to the head of a

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heading into the cloegs close and i'm joined by keith bliss to see if markets have found their cosmic bliss. >> it's a consolidating market across the index of the sloppy today. we've crossed back and forth the unchanged line ten times. what we've seen in the last few days and today is definitely indecisive market trying to filter through the noises that we have either from earnings or fed speakers or actions by bank of england or what have you. it's a little confusing trade. >> we're looking at one clear trend in the last couple sessions. are you surprised it's not helping stocks more today snd. >> the weaker dollar should help and we're hearing the fed speakers, they are trying to battle back the currency wars going on despite the fact they may be worried about things going on globally. but time will tell on this. we need to see a little bit more movement on that to give a lift to equities, but if we get more

noise out of the fed that they are concerned about globality, we'll see equities rise. >> tomorrow morning what's the line for markets to be pleased with the jobs report. >> fw it's too strong, they are going to be displeased because we'll sell off again. somewhere in the 200 area, that would be a little bit more of not too hot or too cold. >> sweet spot? >> yeah. >> probably tenuous until the next march meeting. >> financials are fighting or continue to fight an uphill battle this year. joining us to discuss is kevin cummings of investor savings bank. and david ellison at hennessey large cap financial fund. david, it is astounding to look at morgan stanley, bank of america, citigroup, all of which have lost basically a quarter of their value in a month and a

bit. what do we buy here and why do we buy it? >> what you've lost is rate increases, you've seen a weaker economy so people are concerned about the rates not going up, which is what they had hoped for. i think you buy three things. you buy valuation, and profitability and flexibility and basically the big names have that and a lot of banks do. cheap values and profitability and they are flexible, meaning they can do a lot of things to either benefit as rates go up or not be hurt much as rates go down. you have to stay with it. but you're right, it's been very difficult to watch this rate trade go away this year. >> yeah, the air is coming out of the balloon. where does that leave you strategically positioned here? >> we're in the community sector, the larger banks have had pain in the first few weeks of this year. we're off about 6% on our stock but it's really the strategy. and our strategy is strong. the big banks had record years this year.

things are pretty good at the banks. >> record? >> record years, chase, best earnings since 2007. wells fargo hitting the ball out of the park, pretty steady fourth quarter. >> the concern for many people and those who say the fed should raise rates, if they don't they harbor a part of the major cap stall system, which is you guys. if it's not profitable to lend, why would you lend and ignite the animal spirits? and without higher rates, we can't get this important part of the economy chugging along as it should be. from your perspective, how relevant is that? >> there's no reason for rates to go up -- the economy. >> your net interest margin, much more profitable if rates do go up. >> a lot of community banks are liability sensitive and we're more concerned with our funding cost than actually with rates going up. >> as a general thing for the industry would you accept -- >> general thing larger banks are asset sensitive and rising

rates is positive. >> just finally, there's been a lot of back of forth whether to be in the regionals right now which have shown more outperformance and kevin mentioned this too or stick with the bigger money center banks. if you had to pick, which would be in your portfolio here? >> that's what i hate to do because you always pick the wrong ones but i think the idea -- >> that's the game. >> you've got to pick profitability and i think valuation is important and profitability is important. it's hard to know how they are going to perform because we've seen such a falloff this year which surprised a lot of people. you're sort of in a point where you're trying to figure out where the bottom is or sentiment is. you're seeing that in europe now with banks where they are falling very rapidly because the climate is changing rapidly. if oil goes to $60, the stock goes up, goes to 20, they go down. >> who would have thought we would be saying that's what's

it's all predicated on. appreciate you coming in. david ellison there as well. >> with 17 minutes to trade before the bell, it's now -- actually making gains, these are decent gains, 81 points on the dow, similar to yesterday where you get the late rallies coming through but clearly today not as powerful. robots are invading all wakes of life and that includes financial advisers, a trend now that the markets have been more rocky that striking fear into some customers we'll talk to mike santoli next. >> martin shkreli smirking and taking the fifth before a congressional committee i. irking house members but called a hero by his attorney. ben brafman will explain shkreli's actions. >> that's irony.

robo advisers have gained popularity over the recent years particularly with the young because they are a cheaper way of accessing the market but now the times are getting rocky and the market isn't going in one

direction. a lot of people are turning to good old fashioned call centers and humans in order to allay concerns that customers might leave them. mike santoli from t.d. ameritrade's conference in orlando. take it away. >> reporter: that's exactly right. this debate has been going on for years, growing assets from a small base and human investment advise ares have been saying, wait until rockets get rocky then we'll see if clients are comfortable having software do their work for them. you're having it go both ways. a lot of investment advisers, 14% in recent survey made public here have said that they will incorporate robo advisory tools in their own practice. there's kinds of an adoption of some of the technology at the same time, advisers are tell us they are having to do a lot of hand holding given how tough markets have been. in the same survey, 29% of these advisers say they are clients are more risk adverse than they

were three months ago only about 5% say that in fact that people are willing to take on more risk and see this as a buying opportunity and very afraid of global investing. you basically have a tremendous split, eight times as many investors are saying more risks than opportunities overseas, it seems as if at the same time, we can use these very cheap asset allocation tools of robo advisory they are also earning their money as human investment advisers and trying to do their job of keeping investors to a long-term strategy. >> it all goes in circle, round and round, mike. so -- >> reminds me very much of online brokerage in the 90s and how they thought they were going to put brokers out of business forever. >> particularly when the times get rocky. >> enjoy the rain. it's obviously raining in orlando. >> we'll see you in a little bit. >> just like the market. >> mike santoli, t.d.

ameritrade's registered brokers conference. >> a passing storm, just like the market. >> let's hope so. up 69 points on the dow and almost the end of the trading day here and little rally underway. >> art cashin saying 200 million to buy on the bell could be helping us, the long time investment pro will join us when we come right back. at ally bank, no branches equals great rates. it's a fact. kind of like vacations equal getting carried away. more proactive selling. what do you think michal? i agree. let's get out there. let's meet these people. go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards

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the questions in the market, join us to answer them, david dars k. where are the markets going? >> the markets going the way the super bowl goes, offense wins game and defense wins championships and special teams wins super bowls and special teams in this case right now means risk management and rebalancing when something has dropped a lot and if it's good quality you've got to staanybod at it. that's this special teams win super bowl. >> got any kickers who are especially talented?

>> the gold stocks are up 12% this year, that's been a place to hide. >> you said gold? >> gold stocks. >> gold. >> i heard people say if the fed back tracks from the rate hikes the miners will go up 50%. >> gold will be driven by the dollar. the dollar weakened a little bit so gold goes up. i find that what's troubling the market is one of three things, maybe some combination, number one, is the market sniffing out a recession that we have not forecast yet? maybe 50% chance of a recession, but the market might be higher. secondly is, is there a financial -- >> i'm going to push you to answer that question. do you think we have a recession on the way? >> to me, a recession will come about simon, if we have the fed tightening. we don't have that? >> well -- >> if we have inflation up that we've got to kill, we don't have that. the biggest risk of a recession is china's impact, psychological

impact, not a fundamental impact. number two is the market sniffing out a financial accident somewhere, italian credit? china's debt load? is it sniffing out something? >> i don't think so, simon. >> we are end in an relatively optimistic tone. we're kind of out of time. i have to leave it there. >> very quickly. >> is the market expecting to see something going on that means we're going to have some not a financial accident but instead it's going to be a brakedown of confidence in the authorities to manage the situation? >> do you think -- >> that's what i think is going on. it's a irrational world. the real estate market of new york, irrational world. >> we have to leave it there sadly. coming up on the program -- >> another amazing analogy. >> after the bell we have

earnings and interview with benjamin brafman, the attorney for martin shkreli who made a bold appearance before congress today. we'll talk to him and more. stay tuned.

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>> weak dollar and that's good news for material stocks, look like free port and alcoa up 10% and look at these moves in companies that most hated names on wall street. by the way, there's a turnaround going here, the new economy favorites. what's going on with them and facebook and going on with google? they are all to the downside today, no dramatically but there's a little turnaround. here's my prediction, if we get a weak nonfarm payroll report and anything below -- 195. >> yes. >> pick 160, the dollar is going to stay weak like it was weak on the ism services report and these material rallies will continue. if the jobs report is stronger, that rally reverses. >> and we reverse a lot of commentary we've had during the course of the week. that's great. thank you very much. tomorrow 8:30 on cnbc, in the meantime as we approach the

close here, we have the never ending digital journey being released and the winning financial association mention in scholarshiping more than 5,000 students. kelly evans continues with closing bell. [ bell ringing ] >> thank you, simon. welcome to "the closing bell." it was a day when stocks were trying to find direction. the only real clear collection was the dollar that went lower again. for a while there was only the dow which did close higher by 79 points or half a percent. the s&p was able to add 3 points at the close up to 1915 and the nasdaq for its part, similar pattern for three major indexes. joining today's panel as we wait on earnings and other news, we have susan from the new america

foundation. welcome. and stephanie link is in the house and with us more on today's mark action, guy adami along with mike santoli here but not actually here. he's in this lovely td ameritrade conference set in orlando. worth it for the shot. we'll ask what else is going down there. we'll begin with you mr. santoli, what do you think of this market? >> reporter: people are did he have knitly back on their heels but today as a good example, you have conflicting signals and market doesn't know what to make of it. gauges are telling them different things and bank credit conditions in europe and dollar is weaker and i think that's why you get the fits and starts stepping on the break and gas. to me it's a very sloppy bottomy process. i heard bob say a inversion trade, a lot of weak stuff has lifted. i do think people still think

it's an unstable market condition right now. >> what would you say? >> i totally agree. today was all about the old economy stocks doing much better, industrials were on fire. oil rallied and really those stocks have only been the lagards and all of the fang stocks continue to be weak, more value versus growth. let's see what the number is tomorrow but today it was all about u.s. economy being slower and that as a result the dollar falling. let's see about tomorrow if we get a weak number. a trend continues. >> it's so interesting today, there's a lot of sloppy action, susan. on the one hand we have the fed which seems to be walking things back. the dollar is falling but then crude was also down and those momentum plays from last year, tech names and facebooks weren't having a great session. what do you think is really going on here? what's really changed? >> i think it's definitely the uncertainty and the global picture is really on people's minds, christine lagarde said i

think we can avoid a hard landing in china and talked about the bank stocks and a lot of bad debt. this is being looked as a major drag on the economy. >> i wonder if this this is in a way, guy, i don't want to paint with a negative brush, but just trying to think through the price action, were these moves actually kind of a little bit of risk off moves because the data just -- you know, ain't that great? >> well, i don't think -- you know, avoid a hard landing in china, we're well beyond that. but that's another conversation. i think the data has been mixed. i would look at it and say it's been mixed to housy and other people would say the opposite. we can all agree it's been mixed. what happened unfortunately is the central banks around the world have made themselves front and center in terms of the conversation. you said it at the top of this, they are walking back rate hikes. that's exactly what they are doing. you know why? because they desperately need a weaker dollar. you know what else they desperately need tomorrow?

a housy payrolls number. if it's strong the corner they painted themselves into, continues to get smaller and smaller. you're starting to see the moves and seeing counter intuitive moves and talked about gold ten minutes ago and dollar turns the other side. there's a lot of things that are happening that shouldn't happen if things were a little bit more normal. >> and we're going to come back to that in the morning. but we have a spad of earnings after hours today. the first one is lion's gate. let's get to our results with julia. >> lion's gate missing boij top and bottom line, $670 million versus expectations of $677 million compared to $750 million a year ago. also missing estimates, reporting 45 cents per share versus estimates of 49 cents per

share. the ceo saying in a statement while the performance of theatrical films resulted in softer than anticipated result but they have a clear path to resume the financial tra jekt tri in fiscal 2017 pointing to the tv business and more diversify's film slate with lower costs. back over to you. >> thank you. stephanie, down more than 5%. >> already down from 41 to 25, it's down again more. i don't think it's a surprise that the quarter was going to be weak because of the weak film slate. want to see what the expense line. sounds like they were higher than expected and that's a bad combination in this environment. you've got a beat and raise, got to be clean for the stock to go higher. >> i'm a big michael burns fan. he was one of the first guests we had on the show years ago and he has been a great stew ard for that company. but to stephanie's point, the last four or five weeks there's a stock gone from 41 down to 25.

what i will say is 24.5, 25 are levels we held in 2014, the beginning of the year. we better hold it now. pretty significant short interest. my sense is shorts will lean into this more. if we can hold 24.5 tomorrow and rally on significant volume, anything north of 5 million shares, i think you buy the stock. >> let's take a look at linked in. bottom number is crossing the wire and is a beat but shares with a fuller report will give us a better sense what's happen being, 872 million versus 858 experted. what's interesting to watch, wow -- i think that will say it all. the shares are down 17% after hours. we'll have more on that in a second. social media being one of the bright spots previously from results here, facebook and google highlighting mobile as well. >> in the last couple of days

the fang stocks have really sold off hard. even facebook and google who both had great numbers, they actually have been very weak in this rotation. so i think that we'll have to see what the details are for linkedin, it might be guidance. let's get more detail before we make a judgment. >> linkedin sales down 20%. let's get right to julia with more. >> linkedin shares seem to be plummeting on the company's guidance, q1 guidance and 2016 guidance both coming in lighter than expected. this despite the fact that linkedin both on the top and bottom line reporting 94 cents versus expectations of 78 cents. revenue also coming in better than expected, a hair better than expected at 862 million versus 858 million. it's really the guidance that is weighing on the stock here. the company saying that they expect q1 revenue to be $820

million in full year guidance for between 3.6 billion and $3.65 billion. coming in significantly less than expected and that seems to be what's pushing the stock down nearly 20% lower in afterhours trading. >> just a reminder, i can't recall, we've had guests come on who like linkedin, because it should do well in a good or bad economy. what do you make of their guidance here? >> first of all, this is a stock trading much closer to the 52-week lows than highs, not as if people had hopes up too high for this number. i do think the market would not take it well if linkedin started to show negative relative to recruiter spending and the white collar job market that they've relied on quite a bit, don't know if that's what's going on but you're right, when they first came public and the job market was weak, this is a great play for people underemployed.

i don't know if this is the issue here. they had static in the numbers in past quarters about global operations but clearly, as stephanie said, investors are not really in the mood to hear the excuses of why you're not going to hit the next quarter. >> particularly 50 times forward estimates now coming down, probably a little bit more expensive. >> that's the issue. anything else you would add, we're going through the release and anything else to indicate why -- this is what happens, social media comes out and becomes a big thing and everybody's valuations go up and then the market starts to dlifrnt shat between the strong and weak, right? >> 100%. it's a 52 times forward earnings, getting more expensive as we speak. but i'll say this, i'm not comparing the company's google and linkedin. but google's quarter was outstanding and price action subsequently outstanding. valuation in my opinion, reasonable. that was trade north of $800 the other day after earnings.

and it's trading below 720 now. so unless you knock the cover off the ball and when your valuation what it is in this environment, you're not getting any passes whatsoever and the market has taken them out to the woodshed. much like lion's gate, this stock made a 214 boot omed out around 140 and bounced. if it gets down to those levels tomorrow, it's worth another look to the upside? >> and here just looking through the results and specifically to the guidance, talent solutions to give one example, had 30% growth in 2015 in the core fuel sales business and big desell race there, saying it is relevant to everyone. continued pressure on europe and middle east there and apac. so context here around where the

weakness might be coming from. >> it tells you that that's obviously not good buz 60% is recurring revenue. they should have some sort of predictable to their business model. they have a bunch of new products coming out and margins have been depressed because of it. second half of the story sets up a little better because of easier comparisons but they now have to show they can actually deliver and raise at this kind of evaluation. >> the idea about customer service, we think about facebook and advertising revenue model, it's different than this kind of model when you're dealing with paid customers. so customer service is not always so great for linked in and you're starting to see that fling back. that could be part of what's challenging them. >> it's one thing in the past people have said, which sts better model, more ad driven or user driven or something more subscription driven and this was the case for a lot of recruiters, it's more of a recurring revenue stream then there was the acquisition but

just a final word here, the shares still aren't budging, it didn't seem like the case for linkedin's business model is being made. >> not much you can say when you give that kind of full year guidance. stephanie said it right with the first question, when valuation starts to get in the way you can't get in the way of the stock and that's what's happening. people gave them a pass for a long time because there was seemingly a growth trajectory. this guidance suggests that growth trajectory that's stopped. >> they also mentioned stock based comp, one thing people have watched in the stock. 153 million q1, $630 million the full year. a lot of different variables weighing in. >> if we continue to see this rotation away from growth and into the old economy stocks, that's even more of a reason not to really go chase into buying these dips just yet because it could last for a long time. >> great point, people only seem interested in the industrials --

>> for today. >> let's see how newscorp is doing. julia? >> newscorp's earnings missing estimates by one penny at 20 cents per share but revenue beating estimates, $2.16 billion in revenue just a hair higher than the 2.13 billion that wall street analysts expected. the stock flattened after hours. ceo robert thompson saying that he acknowledges that the company is evolving rapidly into more digital and global company and print advertising remains challenge and seeing growth as well as circulation revenues and focused on cost reductions in sharing services around news corp to streamline operations. this is a company where the results were down a hair from the year ago period and coming in for earnings at least less than wall street had expected as it struggles with the digital transiti transition, back to you. >> a former employer here single

issue of the wall street journal is 4 bucks on the newsstand. any further color you would add around the results? >> reporter: they are trying to find exactly the right mix and model i don't think the street had hopes very high for these particular numbers, the asset value is what you look at with a company like this, not so much what they deliver profitwise, but obviously a very tough road for the once traditional publishers. >> absolutely. >> before we go. let's check in on shares one more time. a couple other social media names are down 1% in sympathy with these results, does that make sense to you? >> the facebook part doesn't make sense because i think it's its own entity. i understand what's going on shoot first, ask questions later, personally i think you're making a mistake. with that said, i mean just look again, go back to google, after what i thought was an outstanding quarter, price action is not good. people are saying, let's take our money off the table and book

some profits in facebook before it potentially has a similar fate. >> plrt, mike, thanks for joining us from florida. we look forward to your return. bring the palm trees and sun back, please. >> thank you very much. >> later. >> more coming up at 5:00 today and brett favre is stopping by to give his super bowl 50 pick and offer his post nfl playbook. i'll be tuning in for that. can gopro survive after more dismal earnings? and former drug executive martin shkreli doing very little talking but a whole lot of smirking and tweeting afterwards. ben brafman joins us in just a few minutes, you're watching cnbc, first in business worldwide. enthusiast. mmm, a perfect 177-degrees.

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welcome back, let's look at shares of symantec, as they announce a $500 million strategic investment by private equity player silver lake, partner will also get announcing a special dividend by cutting

its regular dividend by half. also announcing a share repurchase of 2.3 billion and total cost savings of approximately $400 million by the end of fiscal year 2018. a lot of news. this as the company also reported quarterly results for the third quarter, 26 cents x items versus the 24 cent estimates, beat expectations on the bottom line. revenue topping analyst expectations coming in at $909 million but again, investors seem to be focused on this news of the strategic investment and cost cuttings, keep in mind the stock is halted and expected to resume trade at 4:35 p.m. eastern. shares down about 25% over the past one year. it has been a challenging time for the company. >> back to you. >> we'll see if they get any lift on that investment news. thank you. reopening at 4:35. >> gopro shares plunging after yesterday's disappointing

results, down almost 9%. last night on the conference call, nick woodman addressed a major issue for gopro issues. >> for capturing and sharing personal content, this isn't the problem. the problem is that it's still too hard to offload, access and edit gopro content. so what are we doing about it? we're doubling down. >> well, it's better software what gopro needs to bounce back. max. what do you think, if they are serious, can't they buy somebody? >> great to be here. i think there's a couple issues here. one is software, the bigger one is the following, they had a huge nosebleed priced erngsz ratio because people believed this idea they were going to be a content creator now they are

back to being a camera company and camera company with issues triesing to phase into a software company. they'll make this easier and it will get easier, they have software and doing r and d and a lot of nonr and d folks go but do people -- how many people? how big is this niche market of folks who want another device to capture their uninteresting venture sports as well as the world is concerned. >> what you think the addressable market is and where do you think it is? just a camera company or software company and how long will it take to transform the company? it seems they have to start over again. >> great questions. i think right now it's a camera company and software company. it will be a good software company with a killer app that probably taps into a native camera at some point but that's a tough transition, it's not going to be a content creator and still going to be a hardware company for a while. a content multiple is going to

be really hard for them to get to and that 30x, the p is not cheap now even though it is minus 80% over the last 12 months return on a stock price basis. it's going to be a tough transition. i do think the company has a future, not a bad future, short term probable eye even oversold but it has to come back to work with a tam about being a best of breed niche product. >> max, there's been a lot of hype about the idea of gopro cameras on drones and talked about that being a potentially large market. obviously drones are kind of controversial and camera on a drone flying into your face is a little creepy. what do you think the real potential is there for that market i think on the drones, they are a little bit taste of the moment. i think they are going to have the life of everything being better on a drone is going to last about as long as any other teen fashion trend there's going to be regulations on the drones

and boring content that everyone can make and load and no one wants to watch, whether aerial or on the ground isn't going to be the most compelling content. if everyone makes the content, who's the audience. >>? we have to go but in light of today's panel have heard people say gopro is not female friendly not, that it's kind of amasculine driven market. give us stats on who's using these things? >> love to join you. thanks for joining me. >> coming up, conoco to announce a dividend cut. have the big energy names become a dividend trap? that's coming up. >> when all of the facts are disclosed everyone will recognize that mr. shkreli is not a villain, not the bad boy, i think at the end of this story, he is a hero. >> up next, we'll hear exclusively from martin shkreli's attorney ben brafman on why he thinks his client is

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♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >> on pt advice of counsel, invoke my fifth amendment

privilege against self-incrimination and respectfully decline to answer your question. >> i intend to follow the advice of counsel, not yours. >> that was exceo martin shkreli refusing to answer any questions about his former company's price increase by more than 5,000 percent. after being escorted out, his attorney did make brief remarks to reporters. >> it's extraordinarily unfair that he has been sing theed out for the type of unfair publicity that they have received and when all of the facts about they are ultimately disclosed, i think everyone will recognize that mr. shkreli is not a villain, not the bad boy, i think at the end of this story, he's a hero. >> that attorney, benjamin brafman joins me now. >> we saw the montage of you whispering in his here.

what were you saying? >> i was just encouraging him to maintain the advice of invoking his fifth amendment. i think it's important for you and the public to know that the committee new in advance of the hearing that he was not going to answer any questions. we have correspondents with them and spoke to the staff yesterday. i've only been his lawyer for five days but for months the committee was told if he were required to appear he would invoke his fifth amendment privilege and insisted on him coming to embarrass him. >> at one point you were going to say something in the hearing, correct but they said, because you hadn't been sworn in. >> it was like the moment of robert duval in the god father, the committee owes my client an apology, both for a lawyer who's an advocate and client in an unrelated matter under indictments, i don't want him to answer any questions whatsoever and yet, you have members of congress who i think are

unencumbered trying to give him advice. congressman gowdy was trying to convince him he didn't have a fifth amendment privilege. >> he was saying you could answer some questions that won't incriminate you. >> he's wrong on the law. it's not his business to give my client advice, it's my business to give my client advice and that's when i rose. they did not want to hear from me because i think they did not want to hear what i had to say. >> it's not unusual for congress when they are aware people might not answer questions to call them down and put them in front of the public to make a point. the point was made today that this was a young man who didn't want to answer the questions, he might have reasons for doing so but that's part of the public report as well. >> but you can have that and record by a statement which he signs under only and they can say he chose not to appear and answer any questions today was a show and demonstration that they can force you to appear and force you to publicly embarrass

yourself by invoking a fifth amendment privilege and to be perfectly candid with you, martin shkreli, the one i'm getting to know very well is a genius, is a scientist. >> why do you call him a scientist? >> that's what he is. he has figured out which of the orphan drugs that big pharmaceutical companies don't want to bring public and don't want to sponsor andenerwrite, and what he has done and public has not said with respect to dara prim, has only 3,000 people using it, they only take it for 40 days, two pills a day and cured. he was saving lives and there isn't a single parent who's been deprived of the drug because they could not afford the price increase. >> all of that being said, body language itself can speak volumes and he was openly smirking and laughing and coming across as dismissive and disrespectful of the setting he's in. is that in violation of your

counsel to him? >> you cannot change a person. you can advice a person. it's impossible to physically change a person, martin shkreli is a very interesting person, very smart, he is self-schooled and is intensely bright. and i think he understood that today was not about learning the facts abofrom daraprim. >> this he someone extremely bright and well versed and did answer the questions. the only question of forcing him to show up to do what he did and he resented it. >> that was clear. it's interesting that he repeatedly invoked the fifth and said he wouldn't talk and immediately tweeted the following quote, hard to accept that these imbeciles represent the people in our government, that is a tweet dripping with disdain. >> it is and it's unfortunate, as soon as we left the courthouse, the frustration

exploded. he's young and inexperienced and never been in this position before and it's a regrettable choice of words. but what's even more regrettable. if i were in his life a year ago when this began, i would have said to the people who were running, listen, you want to do a price increase, do it gradually, not a shock price increase, turning the world against you. he's been vilified and it's unfair. >> you must look at these tweets and do you con dome them, using his twitter account to make the kinds of statements like this, that he's made? >> i represent him in connection with the criminal case pending in the federal district court. he'll never tweet about that case to my belief and never speak about that case nor will i until it's resolved in the courtroom. what's going on with touring is separate and apart and he resents what's happened and it's hard to tell someone who thinks he did nothing wrong and saving

lives, to be told in congress, in public, that he's a bad person. i don't believe he is a bad person. so if you're asking me do i have any way i can stop martin shkreli from ever tweeting again, the answer is i don't have that power and i'm not certain i have the right. >> i'm trying to stick with your involvement in the case, to say, wait a minute, we're talking about excusing the behavior of somebody who raised the price of a drug used to treat people with aids by a very high amount, not a drug he personally developed, not a company he had been involved with for a long period of time. that is why most of the public as expressed by people were saying, we don't find this, we don't appreciate this behavior. is he going to be charged with something further for what he did specifically. >> i don't think he violated the law, i would hope to see no

charges brought, but i will tell you this, the thing that concerns me and reason i agreed to come on and do this interview, what's happening and what i do not want to see happen is that the touring the aggravation, i call it, is going to bleed into his ability to get a fair trial. and i need to stop that from happening. i need people to understand that with respect to touring, he's not a bad kid and what he did was perhaps regrettable in the way he did it but -- >> you think only he raised it 5,000 at once? >> no i sat and listened to the representative and when you do your research, pharmaceutical companies throughout the world raise the prices indiscriminatedy whenever they want to, as long as they do it in a good public relations venue, nobody screams and yells. he's a young guy, sort of in your face and youthful inexperience in dealing with the

public relations cosmetics is what caused this to happen. >> his history in a way is catching up with him not a 50 idea executive of a pharmaceutical company he's been nurturing, but came in having left a previous company he's now accused of defrauding and gone there after defrauding other hedge fund investors. then this is the decision he chooses to make with the price of this drug. you still think he's done nothing wrong? >> i think he's done nothing wrong and needs guidance and counsel i don't think he was getting good guidance and counsel. and i've often seen people who are brilliant in one area screw up in another area without doing it intentionally. in particular, people of science when they venture into business, sometimes don't understand how highly regulated the industry is. >> although he seems to be a fan of hip hop who ventured into science. >> i'm a fan of hip hop and ventured into law. i don't know what that means. >> now i guess the issue is

this. you're his personal counsel. you're representing him in those cases of defrauding the prior company and prior hedge fund investors along with this issue about drug pricing that he's involved with now in congress? >> i'm not tour's congress? >> i'm his personal counsel in connection with the criminal case. part of what i see as my obligation is to try and keep the criminal case which i believe to be defensive from spiraling out of control because of a side show involving an issue that has nothing to do with that case. to the extent that my counsel is needed to try and hopefully reign this in, i'm going to try my best. but he has counsel and they will continue to have counsel and we will try and cooperate with them. >> but you worked with the world biggest superstars, puff daddy, michael jackson, i'm sure your services don't come cheap and martin shkreli does not have a lot of financial wherewithal at

his disposal. >> how are you competence sated? >> i've been doing this for 37 years, i don't think i've ever discussed the arrangements with the client and don't intend to start now but i will also tell you -- >> is it billable hours or depend on the outcome of the case. >> you cannot take a criminal case on a contingency basis hoping if you get agood result you'll get a fee. that would be unethical. i would never do that. to the extent that lawyers like myself have their degree of compensation that i think the public doesn't really completely understand, i moon he fell into my life six days ago and i think for the last five days almost 24/7 he's been joined at my hip. i think in the last couple of days things have gotten better and i think they will continue to get better. >> i'm still surprised you called him a hero. >> i think what he's doing, by

championing orphan drugs, saving the lives of people controlled by pharmaceutical companies, population is only 3,000 people who take daraprim -- >> about it exists independent of turing. it's an orphan drug that they identified they could raise the price on. >> what marty is doing and will do, he will take it to the next level and some of the drugs he has in research in development are going to impact on the ability of people who would otherwise die, live productive lives. when i tell you he's say hero, i'm not telling you he's going to be a hero in an hour. what martin shkreli contributes to the world, you're going to finds him to be a giant among the pharmaceutical geniuses. >> what is he involved with in matters of science or biotech, he's left turing not associated with the company before that. is he working on his own on

something? >> i'm not at liberty to some discuss some of the things, some are secretive and some are blockbuster ideas which if they ever realize they are going to revolutionize the treatment of some rare forms of treatment. one of his specialties is finding very rare diseases, that impact on small members of -- small numbers in the population and the devoting his genius to find something that works. those people are ignored by major pharmaceutical companies because you don't need 5 million a month to dose those people. >> it's true, the orphan drug law exists so people who have unusual issues can find funding in the marketplace to help develop drugs that will cure them. again, in this case, daraprim existed before. it was there for the population it served and all he did was raise the price on it. >> that's not all he did it, he raised it to develop substantial assets to then turn into

research and development in the next generation. i think the one comment i took away from congressman cummings, who i thought was quite reasonable and passionate at some of the things he said, i don't think he understood marty's body language and i don't think it was him being dig redisrespectful. just very uncomfortable in being in the spotlight like that and most people would be. it was unfair to see him twisting like that for no purpose other than to then justify having a hearing. the one thing that mr. cummings said, you're obviously a bright young man and i do hope you'll use your intelligence and research to do some good. that's why i think that i believe he's ultimately going to show the world he is a good man. >> there was one other remark that was interesting, martin shkreli, he said people don't understand in the law i have an obligation to maximize profit for my share how olders, arguably he might say that's what he was doing by raising the price of a drug. as most he could to maximize the

revenue and profit that the company would be receiving from it. is that true under the law? is there an obligation on the part of executives to make as much profit as they possibly can? >> i think you should ask the executives you interview every day, whether what they spend most of the time doing is trying their best to maximize shareholder return and shareholder investment, whether it's a legal obligation to do it, it certainly is an ethical obligation as owner of a whp to do things that help your company. >> could somebody prosecute him or somebody else for saying you didn't -- you only raised this 2500%, you could have done more? >> there's a difference between criminal responsibility and legal responsibility. i see class action lawsuits filed every day by people who claim that the chiefs of the company didn't maximize the potential of the company or fell asleep at the switch. that's so a legal risk that people who run public companies run every day.

the problem with the industry to be perfectly candid and i've been doing this for a long time, securities industry is the single most regulated industry in the history of the world. you can screw up without meaning to screw up and not being prosecuted, and you can certainly do that if you're spending most of your time as a scientist and not all of your time as an analyst. and unless you surround yourself with people who really know what they are doing, you can get in trouble. that's what happened here. >> let me ask you before we leave it. are we going to hear less -- martin shkreli is a guy who has put himself out there in the public limelight on various platforms from twitter to youtube, will we hear and see less of him going forward? >> i hope so. i think it's in his best interest to maintain a low profile. you have to understand that just in the train ride back from washington, thousands of people were tweeting him and calling him and encouraging him and

thanking him. some were cursing him, a lot of them were thanking him it's very difficult when you're that young to remain completely silent when you have 50,000 followers on twitter. twitter is a blessing and curse. to easy to say something you regret and out there forever. the issue i'm dealing with is whether or not martin shkreli intentionally violated the law and intentionally defrauded anyone. on that side of the aisle, that's where i'm going to remain. i'm not going to be the public relations person for turing even though i think i could do a good job. i'm trying to level the playing field and today it's not level. ben brafman, thank you for joining us this afternoon. attorney for martin shkreli, who we may or may not be hearing more from. energy company dividends have spiked as their stock prices have gone down. the question, are they worth diving into or is this a

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welcome back, time for the market rapid recap. it was a volatile day again for stocks and the dow at one point up more than 149 points and gave back gains and turned negative but a late day rally to close up 80 points. comeback by freeport, alcoa, u.s. steel. shares are plunging after hours of linkedin, down 25% after first quarter profit and revenue guidance fell well short of wall street's estimates and conoco phillips one of the worst performing stocks today, 8.5%, following a much plarnlger than expected quarterly loss. this move putting dividend investors on edge. for more on what to look for, let's bring in sara hunt, a portfolio manager at alpine

funds. just begin with the significance of conoco's move. was this a game changer? >> i don't think it was a game changer and there had been research reports out suggesting that all of all of the majors they might want to think about their capital allocation and dividend, whether or not they were going to keep that through the year. i wouldn't say it was a big surprise. very often when they cut the dividend, you see a positive reaction because of the balance sheet. i thought the reaction was a little bit large, relative to that given the fact they've given themselves flexibility but there's been a huge amount of repositioning and it's been oils swinging and hard to tell on a day to day basis. >> five weeks ago the ceo was on record saying they were going to keep the dividend at any cost. what do you think changed -- obviously the price, price of underlying commodity and maybe their asset mix, certainly. but what do you think changed in the five weeks? nothing really major in my mind

from five weeks ago? >> i think that there's in the oil industry and for investors an expectation we were going to get a very rapid rebound in commodity prices and that shifted to just in the same recently bias, oil will be low and going lower forever and going to be a disaster. i don't think that's really true because it does have a tendency to be quite volatile here. but i think the ceo can say one thing, he's going to have discussions with his board. the cash flow consider gss, what they want to do with capital and where the capital is and debt structure looks like, all things come into play and you can see things change pretty quickly. >> yeah. you know, conoco was on people's list maybe to have a dividend cut, are there others? are you expecting the rest to follow suit? do you think there will be other places that will be impacted by energy? >> in terms of dividend cuts, the industrials which are badly impacted by energy, most have enough other businesses that i don't think that's a particular

worry for them. i think there are -- you you have careful with balance sheets and cash flow and look at debt maturity. the larger majors have dividends that they are talking about they want to keep. i think they have the they have sheets to keep them. >> even for bp and exxon? >> well, they both are just like conoco, they said they want to keep it. for bp, i think he's been very clear. i just went to the conference call again today, he said, our balance sheet is in great shape. we want to do this over a cycle. we took a dividend we thought we could handle through the cycle. capital costs are coming down for everyone. exxon, i'm not concerned about exxon at all. >> i know you had it in the fund, that's why i wanted to be sure on that point. sarah, thanks for joining us. >> thank you. >> sarah hunt, a topic on everybody's minds these days, alpine funds. coming, reed will join us

live. there he is doing the walk, the talk about the music business and how streaming services are changing the landscape. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

the man who introduced rihanna, justin bieber, just to name a few. a book about his experiences as a producer, sopping writer and record label -- welcome. thank you so much for being here. >> pleasure. thank you for having me. >> i feel like you know me. all the music i grew up to is music that you in a way created. it's just incredible to read all the stories. >> thank you. thank you. >> i don't even know where to begin. one of the things i thought was interesting, you talk about who you thought were the most creative artists of all-time. >> of all-time? >> yeah. >> that's a broad question, but obviously there's michael jackson and there's prince. and there's kanye west. and people don't always agree when i say it.

maybe they don't understand it. but he's one of the greats. >> kanye? >> yes, he is. >> you talk in your book how he had his first couple of albums. you listened to them. the first was a little departure -- >> i thought it was the break-through that opened it up for him. he wasn't bound by the rules of music, or hip-hop. and he's one of the few artists that made five big albums in a row. some of your favorite artists don't make five great albums in a row. >> a piece of information, about how britney spears rejected the song "umbrella. "why would you reject that song? >> they're all great. in their rawest forms, you would be surprised how people don't always hear these songs. >> something that was relevant to everybody watching, how do you identify talent? how do you know either when it's an artist or a song that you've got to hit? >> to me, music is like -- music and art is like a love affair to

me. if i meet an artist, it's just how i feel. if i'm really feeling engaged and they keep my attention, and they have all of the tools, meaning talent first, and they're interesting people, i have intuition that it maybe can work. >> and you can sometimes see it in your eyes. lady gaga is the one that got away. >> lady gaga got away. that was a tough one. but then justin bieber walked in. so it worked out. >> you guys did all right with him. >> it worked out. >> megan trainer, that was a big one. how big are the grammys and super bowl halftime? >> super important. grammys, still the biggest. super bowl the biggest stage in the world. so they really matter. >> and just finally on streaming music, you actually said it's going to be a holy grail for the industry but there's not enough subscribers yet. >> it's changing. we're picking up the various

formats, or subscription models, whether it's spotify, obviously apple music or rhapsody, they're all growing every day. i think that is the holy grail for music. >> do you prefer one over the other in terms of streaming? >> in just a word. >> no. >> if we were ending the show right now, we would let you elaborate. thank you so much for joining us. >> thank you for having me here. >> fascinating book. >> thank you. i hope you guys read it. thank you. >> what a show. that does it for "closing bell" today. "fast money" begins next.

"fast money" starts right now. live at the nasdaq market site. tonight on fast, big oil cutting their big dividends. if you're looking for income, you're not. we have five stocks, nearly more than 4%. they're all up in the past year. lincoln getting slammed on guidance. stock down about 27% after hours. we'll hear from an analyst with a buy rating on the stock. he'll tell us what investors are missing. over $2 billion is