why not? mcdonald's and pfizer. >> mcdonald's had a nice run, but chevron, bank and boeing which has been troubled. an hour to go. thanks for watching "power lunch." >> "closing bell" starts right now. \s hi, everybody. welcome to "closing bell." i'm kelly evans. >> and i'm bill griffeth. a third day of gains for the stock market. pretty good gains, as a matter of fact. now, if we close higher today, this would be the first time this year we have seen a three-day gain for the markets. now, this one really gets my attention. if we were to close up by more than 1% on the s&p today, it would be the third consecutive day where the s&p has had a 1% gain. do you know we have not seen that in -- >> i'm guessing several years. >> since october of 2011, over four years ago.

isn't that amazing? >> where are we now? we have some room, but that's absolutely the level to watch. we're going to discuss whether you should keep a defensive portfolio or not. also oil is on fire today, back above $30, so are the lows in oil behind us? is that what's driving in market? we'll take a look at the crude by rail business and how hard it's southbound hit. but let's start with an incredibly important story, national security, all kinds of areas that this story is 1r06d in. apple, of course as you've heard by now, taking on the fbi, saying it will satisfying a recent court order that the tech giant received to break open an iphone used by one of the san bernardino shooters. we've got all the angles of this story. emon eamon javers is covers it,

and is it josh and jane wells has reactions from families impacted by those deadly shootings in scan byrne dino. eamon, why don't you start us off? >> we're starting to get political fallout to the national standoff between apple and the fbi. we're starting to get some of these presidential candidates weighing in. donald trump earlier today on fox, here's what he had to say -- i agree 100% with the courts. i think security overall, we have to open it up and have to use our heads. so trump siding with the u.s. government here over apple. also we have a statement from marco rubio, he's equivocating a bit more. what he says is -- this is going to require us to work very closely with the tech industry to find a solution. i believe there is one, and then of course over at the white house, the press secretary josh earnest weighing in from behind the podium as well. here's what he had to say. >> obviously the department of

justice and fbi can count on the full support of the white house as they conduct an investigation to learn as much as they possibly can about this particular incident. >> i don't know if he counts as a politician, but edward snowden tweeted in, backing apple in all of this. >> eamon, thank you. over to josh lipton for how apple is reacting. josh? >> reporter: well, kelly, apple's ceo tim cook weighing in. cook writing -- doing so would hurt only the well-meaning and law-abiding citizens who rely on companies like apple to protect their data. apple is basically saying the government wants it to create new code that would circumvent critical feature of iphone security, in other words, a master key that could open the

terrorists' phone. apple's position is once the government has the key is they could use it again and again and a bad actor could replicate it. and if the chinese know that the fbi has this key, for example, how would they feel about iphones being sold in their country? this tension between national security and privacy we know has become a big issue. it's often pitting silicon valley against the government. that tension has only increased since that deadly terrorist attack in san bernardino, even the usually outspoken john ledger, ceo of t-mobile, told our jim cramer he doesn't know the right answer. >> he's in a really different spot. obviously what we've got is an unheralded situation, where he's being requested to help, you know, authorities deal with the security of the device. i, you know, we'll see where it goes. i wouldn't know how to? advise him.

>> so far tech giants have been silent. all either declining comment or didn't respond to requests for comment. bill, back to you. >> josh, thanks very much. whether you agree with him or not, i would encourage everybody to read the entirety of tim cook's response to this. it's a very well thought out argument. i think people tend to pull out certain tidbits and use that for or again the argument. but if you read the whole thing, you might have a different opinion. we'll talk more about that in a machine. >> in san bernardino, the families of the shooting victims are speaking out. jane wells has details. >> down here in san bernardino, i bet you can figure the families will not by buying any more apple phones. the fbi wants to know if the two killer had help, if they had been planning other attacks in area and where they were during an 18-minute gap in movements on

the day of the slaughter in december. local state knbc spoke with one man who lost his wife. >> i'm upset with apple for not assisting. people's lives matter. they can -- any assistance that could help the federal government in finding what's behind those phones is a big help. >> reporter: their son celebrated his 11th birthday yesterday. some on twitter are saying tim cook should be ashamed -- if another 9/11 type event occurs and the contact info of one of those terrorists is on that phone, will tim cool still be proud? and some question why the fbi's real motive. one tweet -- sounds like the fbi wants a universal tube to be

used at their discretion. our poll right now currently is favoring apple. guys, back to you. >> jane, thank you very much. the question becomes, is giving the government access to this terrorist's phone a matter of national security or is it a privacy issue? >> here to shed some light, steve rogers joins us, formerly with the fbi joint terrorism task force and ex-military intelligence officers. and founder of parameter security and ethical hacker who has trained federal agencies and agents. steve, that last comment, jane said, this is what is the fbi's real motive? does it want an universal tool. what would you say to that? >> the question that should be answered in this case. what we are asking apple to do is what is in the best interest of the american people and not in the best interests of their company. look, when the government goes out -- and i was part of the

joint terrorism task force, we encouraged every american to stand up, speak out and say something and do something about terrorist. apple is being asked to step up on behalf of the american people. i think they're sadly mistaken. if they think the majority of the american people are on their side, they ought to understand they want their kids safe, their parents safe, and if there's information in that phone, they better darn cooperate with the government. >> dave, tim cook's's argument is they would have to create a master code, is that the case? especially when you just consider all they said is action to this one phone? do they really have to reinvent the wheel to be able to do that? >> they do. they're wanting to get rid of a delay. right now apple devices are designed if you put the code in too many times in a certain amount of time, it erases the

ios. one thing i would respond to is i don't think anybody here is invalidating the problems with the attacks, but i think the key that tim cook is getting to here is we have given up personal safety -- sorry. we've given up personal liberties for safety. with the nsa being able to do metacollection, and apple, microsoft and a lot of these i think what he's saying is this is more than just phone. >> the issue here is, look, for hundreds of years we've had to deal with the balance between privacy and security. what is new or different about

smartphones know in this long history of what the law speaks to already? >> what is new and what is different is we are at war. we weren't at war 120 years ago. we're living in extraordinary times it's an electronic war. this is why we need the help of compses like apple. we're talking about one phone in this case. i happen to trust the people i used to work with. i get it about privacy. i don't want anybody snooping into my life, but i have to share something, in these extraordinary times and this new type of warfare every american person and company has to come together or we're not going to have a country left. i mean that, these people are vicious killers, so i would hypothat mr. cook and apple to rethink this. a big fear, steve, of apple and others is any master key created by apple could get into

the wrong hands, they have you have opened a pandora's box. can you guarantee that wouldn't happen? >> i never can. >> isn't that the problem then? >> that's a problem, but sometimes you have to take a risk. sometimes for the good of the people and national security reasons we have to do this. these are legitimate concerns. >> in the same case -- >> look, that's ridiculous. >> no, it's not. it's not. >> go ahead, steve. steve, go ahead. >> that's ridiculous. we're talking about an individual who may have critical information on their phone that will probably american citizens from being killed, period. >> dave, one thing i am struck by is that the willingness of those who are in favor of apple to broaden this out

tremendously, to make this a huge national security issues and fears about security good et into the wrong hands, things like that. >> what do you say to thoughts who say this is just about this one phone. they want acts to this shooter's phone and that's all they're after. that is all the judge ruled on yesterday. rmts. >> what's wrong where that? >> once this program is created, you cannot tell me that law enforcement will not want to use in over and over and over again. >> can't we take it on a case-by-case basis? >> yes, you can't. >> we can't, but do you really -- let me finish. let me finish. do you really think -- i trust my employees, but i am not going to put a weapon out there that someone malicious could use. tim cook is not only worked about law enforcement using and

abusing this. he's worried about what if this gets out to people who shouldn't have access? what if the chinese get access to this? the thing that tim cook has to understand and a lot of people don't understand is everybody can get hacked. >> why shouldn't the u.s. just ban encrypted smart phones? >> because that i believe would damage or -- the individual privacy rights and how we use our phones. the point is you hit the nail on the head. apple neither to step up and do what's right for the american people. >> it's a thorny issue, to say the least. gentlemen, thank you both for your respective points of view, and we'll have more coming up. about 45 minutes to go,

another sharp rally. we're watching to see if the s&p can hold a 1 punz gachb. >> and despite the three-day rally, one of our next guests says investors should remain cautious. and oil still popping today, down more than 40% over the past year. falling oil prices have crushed the crude by rail instrument, forcing refineries to choose oil imports over domestic production. we'll show you what's going on there later. >>got it. we slow, we die. >>what about cashing out? no! i'm trying to build something here. >>how about using fedex ground for shipping? >>i don't need some kid telling me how to run a business! i've been doing this for 4 long months. >>fedex ground can help us save money and deliver fast to our customers. not bad, kid. you remind me of a younger me. >>aiden! the dog is eating your retainer again. let's take a short 5-minute recess. fedex ground is faster to more locations than ups ground.

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welcome back. another strong rally day here on wall street. leading the way is chevron, caller pillar is up there as well, boeing, utx, all with gains of more than 3%. only two names in the red right now mcdonald's and pfizer. broadly speaking, gains of about 1.5% or more, even the russell build. let's talk about this rally. it's time for the closing bell exchange. with us mark stepper, kenny polcari, and welcome back rick santelli. he's there in chicago.

i think you have a little lower number, don't you? >> right leer is where i thought we were going to hit some resistance. we're teasing with it right now, but i still think it's going to kind of fail. i would agree with arthur that maybe it's got more room, but we've had this fairly dramatic move, and i think it's going to back off. >> what parts of this market are you investing in? >> i actually do not believe in this rally right now. i think we're rallies from oversold levels. in order to be sustainable rally, we need a legitimate catalyst, and we haven't seen that. in order for this to be sustainable, we need some easier monetary policy, which could help to accelerate growth globally. we need to get reversals in oil, the dollar that is actually significant. where are we investing? we're defensive. we do like large 46 cap defensive do mist ig oriented stock right now, particularly different payers, because not

only are they better performers, this should be able to withstand a market shock much better. >> rick, what do you make of this three-day rally for equities and you've seen a sell offwhere the yield on the ten-year is back to 184, i think i saw. >> that was a high yield of a day, even a 181 bill to a week and a half high yield close going back i believe to the 5:00 of february, so a week and a half. to me recalibration is a process. noise digital. i would find it hard to thing that everything we experience for most of 2016 is gone. could this rally and the risk on come back for a week? a month? a quarter? of course it can. absolutely. when will i personally feel comfortable with the level of equities moving higher? when things like coco bonds aren't subverted and purchased, when the italian bank really get

taken care of. 25 years of malaise and tarts to do something other than test tube and putting rates negative. all of those issues aren't going to go away and i'm sure mario draghi, janet -- could ykuroda. if anything i think you'll see central bankers dig in deeper. what you want to watch out for is how long the new round of medicine lasts. my guess is each round of new medicine, stimulus, easing, more negative on rates, it will have a finite life more ram buns. >> and i think those minutes indicated concern, and that the brain trust was maybe they'll slow down. you know maybe it will not

happen in 2016. i think the smart money is talking about one hike this whole year, so therefore the tone becomes more dovitious, which gave further legs and fuel to this rally, but i think again it's a bit overdone. i agree with mark, and really with rick as well. i think that until you see that real catalyst, and i don't necessarily thing that the four-nation oil deal is a cat lix. >> mark, you're waiting for various things to happen. what will be the catalyst? can the fed actually play a role in this if they either hold back on their increases or hold to the increases that they implied they were going to go. >> if they hold to the increases their implies, you know, the market is not going to be able to move forward.

leads to a huge disconnect, with the fed to understand the that strong dollar has readily been a headwind. >> yes, the last couple days, recessi recession. we're a little less than 40 minutes in the trading session, dow was up 290 points at the peak, up 245 right now, once again the nasdaq, the outperformer today with a gain of almost 12% were 87 points?

>> the once red-hot crude is taking a major detour because of falling prices, and that's having a major effect. those details are next. plus another big story, big fcc vote tomorrow that could end up with a huge impact on your cable bill and the bottom line for your capable provider. we have a preview on that story coming up on "closing bell." student.

third trading day in a row we have seen gains like this. this would be the third day in a row the s&p has been up 1%, at least. the last time three days in a row when the s&p gained 1% even day, back in october of 2011. we are astounded by that statistic. oil is helping s. noble energy is sharply higher after reporting a surprise quarterly profit thanks to the cost-cutting efforts. the oil and gas producer also says it could monetize assets to help counting eroding cash flow from the plunge in oil prices. well, speaking of the plunge in oil prices, it's being more expensive to ship crude, making it more attractive for reniners to import oil instead of it shipped do misticly by rail. morgan brennan joins you from a refinery in new jersey to

explain. hi, morgan railroad hey, kelly, that's right. the lion's shares of train originate out of bakken. but as we've seen crude prices plunge, it's not as cost official to schiff oil by train. they're down by almost half from a year ago. the spread between brent and wti has that's one reason why you're see inventory reece main near report level. all of this more bad news for the railroad. also worth noting, this is working a number of infrastructure into question, including how much oil that this phillips 66 refinery called bay way will continue to accept via

rail. phillips inched a big deal with global partners to bring some nor trains to this complex. just a few weeks ago, the company saying it's going to ship more of that oil now via barge and pipeline instead. back over to you. >> we've seen oil come back off the lows, how big do the price moves have to be to change what we're talking about? >> that was going to be my question. >> reporter: there's two things you have to watch when you're talking about shipping, just the freight costs are $7 to $8, plus fuel surcharges and also loading fees, so it can be as high as $12 to $14 a barrel. so you need to be prices higher than the cost of production, much higher. the other thing is going back to the spread between bron and wti, you need a big discount on u.s.

oil for that to makes sense and to price in those transportation costs. otherwise it makes more sense to import oil from places like west africa, which is what we had been seeing in recent months. >> i was going to say, was there an absolute number. i don't want to put too fine a point where it would make more sense, but you're right. it's all relative as well. that would make it a big difference. morgan, thanks, appreciate it. >> one of those unintended consequences. >> i was thinking about -- >> yes, absolutely. let's get to a news update this hour. >> here's what's happening this hour. turkey's deputy prime minister says a car back attack in ankara has killed 28 people, wounded 61 others. he confirmed the attack targeted military vehicles that were carrying armed forces personnel. the government says it believes it was a terrorist attack. gop presidential candidate

ted cruz went on the offensive against rival donald trump at a press conference in seneca, south carolina, challenging him to file a threat end lawsuit against him. >> i have to say to mr. trump, you have been threatening frivolous lawsuits for your entire adult life. even in the annals of frivolous lawsuit, this takes the cake. thousands gathered to pay their respects to one of two sheriff deputies shot and killed at a panera bread restaurant last week. patrick daly's body arriving on a fire truck. he was killed while responding to a disturbance at the restaurant. and nike confirming they no longer have a relationship with boxer manny pacquiao after he really made errant-gay comments calling gay people worse than animals.

pacquiao apologized for the remarks in manila, but said he stood by hi opposition to same-sex marriage. that's a update at this howard. back to you. >> thank you so much, sharon. 30 minutes to go here today it's been pretty consistent. casino operator boyd gaming reported better than expected earnings, what is behind the beat, even as rivals continue to struggle. we will hear from the ceo in just a moment. later don't miss my interview with william shatner to get hi take on this market. he's got one and his friendship with the late, great leonard nimoy. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph,

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a gain of 242 points in 29 respectively, only about two dow names even in the red today. the nasdaq again the outperformer, even names like twitter having a nice session today. take a look at the so-called

f.a.n.g. names. bill, alphabet shares are up a little less than 2%, too. >> the f.a.n.g. stocks have teeth again. >> yes. with us on the floor of the stock exchange as we move into the final half hour of trading, you know, everybody would love to pick a bottom. you want to buy on the bottom tick, but there's still a lot of skepticism about this three-day rally. you're one of those as well. >> yes, the news out of the middle east with oil was good today. maybe they won't do four overall, i think the problems are with us. first quarter, art cashing says you get to 1950, kenny polcari says about 1925. is there a let that tells you

this is for real? that's what we're looking at. if it breaks -- did you yeah, all bets are off and we're back on. is that necessary for you as well. what you have toss is -- for a -- sfm on the rally. alan valdes, thank you. thank you both. better than expected fourth quarter results on both of top and stock is down bush today popping up 2%. joins us to decide what's going on, keith smith, good to see you again. what jumped out to me, quote, we were particularly encouraged by

a strengthening economy. people around here have been debating a recession. where do you see strength? anchts we saw strength across or portfolio from the west to the east coast. we see a strengthening consumer. the fourth quarter was just a great conclusion to a -- >> you talk about a couple trends here, people having a bit more spending power, is this kind of like a local nevada type of thing in particular, or do you really think of economy broadly speak hag underestimated or at least the consumer? >> i think as it recent to the consumer economy and how they're spending, it's been very strong all year. also on the east coast at

the borgata property, so we see strength across the country. >> keith, what i'm struck by with your industry is the tremendous competition that's out there, not just among the big casino operators, but now the lotteries, and the sports betting, and the online gaming, all of those things. so you're among those taking the tack of expanding into other areas, you know, restaurants are very big in las vegas right now. everybody goes for the foodie experience almost 67 as they do for the gaming. at what point will we cease to think of your company as simply a gaming company and more like a lifestyle company, or are we already there? >> we're not there yet. >> we've adapting to an evolving consumer, that is looking for a more wholesome experience.

and so the goal is to build into that also bridges a new customer to the property. subtle a more secular changes? >> i think it's a secular change, a permanent shift. we saw it happening on the las vegas strip and now that's evolving into some of the regional casinos. >> i'm thinking about the election cycle, the fact that nevada is about to have a couple primaries as well. do you think donald trump would be fit to run this country? >> i'm not going to comment on the presidential election.

fortunately not on our industry, it's not had a big impact on our business too much either way. >> the attitudes about casinos in this country have changed quite a bit. what happens is more and more we start toss video consoles popping up in bars and things like that across the country? have you thought about that? >> other the lost 20, 30 years you've see gaming grow. that's just part of the evolution. it's much more mainstream, seen as a form of entertainment good to see you as always. >> thanks. joining us today.

we have 20 minutes left in the trading session here. market holding on to these games. >> it is, but get set for the clash after a quick box. we'll explain why it wants to liberate your cable box. and it's up for 7 academy awards. now you can live like matt damon's martian via virtual reality. details are ahead.

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the s&p up still 1.6%, the nasdaq up 2%, and priceline is one of the biggest winners today after the online travel service reported better than expected profit and retch. the company is also predicting it will see an up tick in bookings this spring because of the lower feel prices. >> which is fascinating, because what we just ahead to boyd gaming. again, he's talking about the consumer with some real spending power and here's priceline

saying they're seeing the same thing. >> i know we have to get to this promo. give me one second, guys, this analysis done by cnbc of credit card payments over the last two years as oil prices were going down, credit card payments for restaurants were going up. that seems to be where everybody was spending money. >> that's why they're opening 20 more in these casinos. as you just said, that spend is going somewhere. >> okay. recall that i just mentioned price line. the first thing you think of is william shatner. as it happens, he sits down with kelly evans to discuss the markets and streaming video in the next hour. >> he did weigh in. i asked him about the election, did he see trump fit for president, et cetera. so stay tuned it was just a short while ago. if you subscribed to cable, you

probab probab probably. tomorrow among the s.e.c. will vote on a proposal to open up the settop box, they would provide to open is the platform for tech companies to create the own interface. now, fcc chairman looks to boost competition for consumers to pay an average of $231 per year for tv providers to rent those boxes. it's an amount the fcc says has increased 175% over the past 20 years while the costs of tvs and mobile phones have dropped 90% over the same time period. the proposal drawing opposition from pay tv providers, including cnbc's parent comcast, time warner cable, dish, cox, at&t

and others. they along with the national cable association say the proposal would, let tech companies poach tv programming. quality program would be reduced. they warn views could use, quote, vital privacies protection, as tech companies start tracking their views has been. they also have available -- and they use that information to targets ads and understandably, they don't want any other companies to have access to that data. kelly and bill? >> what a thorny issue. i had an aha moment when our executive producer was describing this to me. you know, with so many different distribution models out there for television now, it does make sense to some degree to allow some companies to come in and provide an alternative to the traditional capable box. i'm not advocating one way or the other, but that would seem

to suggest the progress that will be made with technology, right? >> it's interesting. that you week plays a tv bunding provider like a comcast or dish for. you question is if breaks down the bundle. it difficultly razes some interesting questions. you can stream all sorts of different products even today, so what comcast and others are arguing, there are already a lot of options out there. i think it will be one of those issues that is just debated for a very long time. i don't think we as consumers are going to see any changes certainly in the next year. >> they're such a pain furniture wise. if there was a better way to combine them with something. anyway -- >> i don't know if she mentioned, but we should mention that comcast is our parent

company. >> this is true. 11 minutes to go. s&p up 30. transports up 121 points, even the small cap russell is up about 15 points, the question being asked these days -- is this rally for real or not? or is there still too much risk in the market? we'll ponder that, next. i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement

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joining us, talked about this market rally over the last three days, a rare wednesday appearacy by david, and tom porcelli is with us, the chief u.s. economist at rbc. >> a valentine's week should be from janet yellen. so take it slow. at least they're going to hold it stably, and it's been a while since i've said his name, but

he's china's janet yellen. i think that is why the markets have done this week. >> we've been sort of pounding the table on that for quite a while. the reality is the united states economic activity is far away from a -- nothing has changed in that regard, i think a lot of the noise in the market has diverted it away from the fact. >> the market response has been -- >> i've seen a lot of clients when i'm in meetings, look, i can tell you the u.s. economic backdrop is great.

tablization and all the overt -- basically the catalyst that started this, is basically -- and we have -- but to get some table -- >> we also learned that those concerns can have real impacts if china starts to see outflows and there's more forced selling locally, it will come back, won't it? >> i personally believe this is a really within a downward trending market and this should be sold and a time to clean up, lighten up on positions that you're uncomfortable with, and go into more defensive names, to get some defensive ballast in there. you get some corporate earnings, so you'll have further flow to tell you whether there is a

sustainable rally or not. >> when would you see that happening? >> we have scaled back our expectations. and we think that they'll deliver three over the course of the balance of the year, but let's be honest, if markets remain unsettled that probably is it for the fed, but it's at in the context of an economic background. this is probably longer idea than we have time for, but economic times are very different, and i think for the fed that's the challenge, trying to adjust to market time horizons, and i think that's probably the wrong policy. european banks are down 24% for the year. >> thank you, guys. we'll come back with the closing countdown, the dow still up 255 points. after the bell we'll head to

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coming up to the last minute of trade here, we're focusing on the s&p s&p, with the three-day rally that began this friday, the market is up about, what, 5-plus% persist, but a -- the last time we had three days in a row like that was in october of 2011. >> that is really shocking. >> crazy. >> i want to point out we're getting some short covering, like american pain, freeport. these have rallied. even deer has been up. >> that's pretty good, you know? >> yet was a bit lighter than the day berg. inch we'll see if that

continues. 50th anniversary of "star trek.." >> funny you have mention that. in just mobs, junior achievement of new york ringing the closing bell, and future business leaders of america at the nasdaq. stay tuned, hour two of "closing bell" with kelly evans is right now. kell, see you tomorrow. \s welcome to "closing bell", everybody. here's how we're finishing up. that's good to close, about 16y 450 and change and nasdaq and again, just to be clear, that s&p 500 gain does make it a three-gain stretch.

welcome, guys, guy adami joins us as well. interesting, we haven't have much movement today. it really is, a lot of very widely watched levels. wonderful good things about this rally, it shows you how much pes niche had build up. you're going to say it was low volume, short covering chgs that's both good, because it's wall of worries not necessarily used up, but it's also legitimate. people are saying that would be the threshold which you would say, okay, make we cully left the lows behind.

>> that's some credit spreads, instead of blowing out, they're tightening, which is a good sign. they're the ultimate gauge. if you think you're going to miss your earnings, you'll miss your desert. >> i participated in that market a big way. the question i have, no change in earns estimates, in fact a downgrade down from 220 there minute some analysis out there starting to say maybe permanently low energy, which is my investment thesis, and there's more optimism.

chris, you're a bit more cause, exactly to the point we've been making, wait, wait, not so fast. >> the market rallied since we hit that low last week, and we've seen some significant rallies, but you havely it's been some some of the short squeeze stocks. they have to take that on the to start getting read involvement. it's got to prove itself, first. they almost succeeded, got down to 1810 in the s&p, now it's the bull's turn -- the fact that

that oil volatility, the ovx closed about 8% low that held court, right? that happened, but now the bulls need to prove themselves aung then we'll have another conversation. i think we fail here. we'll see what happens. some of these companies have said, you are cautioning that the market could be going through something like a 2008 style event. why is that? kelly, it comes down to technicals.

when that happens, the market tends to shift back to technicals. but more importantly that ten-month, which is a shorter moving average is now crossing below the 20 month, which is telling us that the trend is truly broken. >> chris, just out of curiosity, we have seen the an alosses, how did the technicals look? >> they were much healthier. we had some trent lines that were kind of holding in place. remember, we're talking about 20% pullbacks when we look at that particular time range. it's just that longer term trend

has shifted. immediately come down and test. >> kevin, you pay attention to that? >> i do. but you would need a meltdown as well, and right now we're still independence 4% -- and even on the single c stuff. i don't see that right now. >>ite to agree with you, kevin. it's not as bad. one of the things we're trying to keep in mind here. that juan the same thing we saw. that's what we're trying to keep in mind. it would be a different catalyst and just a general slowdown. >> seema mody joins us with those results. >> we're looking at net app

earnings adjusts, retches missing expectations. revenue guidance and earnings guidance well below expectations, the company says it's initiated a transform answer to reduce the cost structure 6 the company. shares are down ben their 5%. it's not a crazy expensive to be. >> yeah, looking back, it's a tad expensive, but there's going to be an opportunity to buy this stock. it's one of those stocks, we've had these conversations before, if you can get a flitout tomorrow, it's a name to take a look at. i eet try to get a left for you, and we'll come right back.

i do think you have to look at a gen field position, so obviously it seemed like there was a background tess recent price. >> it is interesting we've been through something like -- is it a 2011 style movement? is it even worse, i mean, perhaps it's offkilter with what's happening in the real economy, but something still has just happened. >> i think the debate will be all about exin because woe haven't resolved that sector. there is going to be a 34re9 ra of vacancievacancies, and i thi have to look at the market x of all of that.

>> i think what you had is a very late cycle market. late corporate mark. and the financial economy just not adjusting to fed tightening one of the telling things have been killed coming into this year. i don't think so, that's how i'll rally. >> it took a long time for the market to pay attention to the weakness. >> when you look at two sectors, these are sectors that over the last two years, not two months, not two quarters, but two years have just been beaten down by the analyst recommendation.

i think those are some shining opportunities for those who are willing to really roll up their sleeves. given your prognosis, are you in cash? treasuries? or how are you putting your money to work? we're putting money to work, and i mentioned -- we're looking to increase allocations. guy adami, a last work? >> i think every bear market has a catalyst to the point we're just making central bank policy error, will that be the cad list? i think kevin can speak to this,

will central banks make a fatal flaw? that they can carry the landings, i think you're asking for a lot. >> they definitely seem to have some broken bones after all of this. thank you for your time. catch more of guy adami with the "fast money" team at 5:00. quarterstone carter worth will have three names with more room to run, top of next hour. court ordering apple to help the fbi hack into one of the iphone of the san bernardino shooters. this could have huge repercussions of the prif sill and security of every apple uses, we'll hear from jim haim, and one of the apple's early employees, guy kawasaki. and ahead, you'll recognize him as captain kirk, but recently the priceline negotiator. coming up, william shatner talks about his new book and friend

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welcome back, a california state judge ordering apple to help the fbi unlock a cell phone

recovered from the san bernardino shooters. tim cook responded in part -- we can find no press accident of any american company, doing so would hurt only the well-meaning and law abiding citizens who relike on companies like apple to protect that you are data. downing us is jim haim of contract contract, ranks member of the nsa. congressman, thank you for joining us, first of all, how do you come down on this issue? >> hey, kelly, good to be with you, i sort of swung around it a bit. this is a really important case, one that the fbi could have addressed in the fisa court under seal very quietly, but it's not the the reason it's not is the fbi is asking the court to give it fairly unprecedented

authorities to conpep a company not just to cooperate with a warrant but to create an operating system with weaknesses. that is a very big deal, you know, at some leave, i thought, you know, gosh, the fbi at to help, but -- sorry, apple ought to help, but this is a fairly unprecedent unprecedented request, with all sorts of implications, for who else might get this version of ios that apple is being asked to contrary. >> let's say it was sandy hook, and it wasn't clear whether the shooter had a terrorist motive or notened, would you support breaking into that cell phone to try to find out? >> there's no question that

there's an overwhelming interest of getting into the cell phone. that's not at issue. in fact if this was a her or e-mail, we wouldn't be having this conversation. at issue is not whether we want to get in. of course we do. the question is, how do we feel about the government being given a new authority, and to say you need to not only help us here, you need to actually write a whole new software program. >> but congressman, in what other part of our lives is there such a black box. this is is creates -- should that be allowed? or should this encryption actually be banned?

so encryption is important to the privacy and security of every single american. this is really unprecedented, which is to go to a company and say we want you to create a whole new program, and insert it into a cell phone. how comfortable are we with the government having that authority to tell third parties that you have to help us in this way? by the way. there's a question whether that is burdensome or not, but the other question is, if that new key, if you will, to an iphone exists, and even even if it only -- i promise you, if that key exists it is a huge target for the chinese, russians, iranians, for criminal enterprises, et cetera. >> that's what makes it so complex and difficult.

is that true? would they have reached out to apple and somehow gotten alleges to this phone? >> of course, of course. every single day the government issues secret warrants, secret orders to companies. this has been the topic of much discussion. should companies be allowed to report. you understand why they exist, if it were public that they were looking at the e-mail records of mr. a. >> i don't understand why, if apple says this technology s. i get i would say to fisa, we're going to allows you to do this. >> two days ago i thought it technology couldn't be broken, but lo and behold, for this

particular iphone, for the iphone 5, it can be, which in and of itself is an interesting fact. >> thank you, congressman for joining us. to continue what apple's role is and should be here, joining us on the phone, former chief guy kawasaki. you heard the discussion that's been going on all day. is tim cook correct in defending apple from against having to release this information? >> in my opinion, yes, on several levels. on a moral level, if we were to get this back door, it would be opened in only your dream to only the right people. you know, government agencies. it would be open to everybody, because as soon as it exists, people will start looking for it, it would be broken. so that's on sort of a moral level. but also on a commercial level, imagine if you were about to buy a phone and you had a choice.

you could buy an iphone where the government can get in and arguably anybody else can get in who has a level of technical expertise or you can buy another manufacturer's phone that that wasn't true. this phone would you buy? at an extreme why didn't the government say the people who make paper shredders have to make it so the government can unshred the paper. isn't that the same thing? that's ludicrous, obviously. i think they're doing the right thing for more and commercial reasons. >> it's a tough one, guy. it goes back to this question is should there be a complete firewall, something which cannot be penetrated which has information that i believe constitutionally the government has a right to try to access. >> again, as the congress mast said, it's complex. and let's imagine.

there are some candidates running today, and if there were president, i would definitely fear how they would abuse the ability to get into any iphone. i can't imagine that situation. so let's look at the top of the period pyramid. wow, i wonder what you think about -- he said if there was handled through a fisa security, access would have been granted to the phone. is that true? would the company have actually been able to do that? >> that's what the reports say. i honesti don't know. i would default to the congressman on that.

they a way to broaden or redirect. some have half jokingly said go to a group of hackers, offer a quarter million to the first person who can access this phone, for example? >> yeah, that's crowdsourcing at an extreme. i'm not sure i would want to be the one collecting the quarter million, because that would be a precarious position. >> or, you know, maybe it could guarantee you a job at apple at this point. just to put a point on it, you don't think that anybody inside apple is currently able to break in encryption, nor should they be asked to do so? >> i didn't is a i that at all. i don't know if anybody inside of apple can break the encryption. i just hope that apple and all device manufacturers create a safe zone that no one can break. thank you.

>> thank you, guy kawasaki. what do you think? >> i don't see any real way that tim cook can take a different stance without exhausting all the efforts to say no, we don't want to become an instrument of prosecutors of the government in this instance. you would hope it gets to the point of figuring out a broader policy, what are the responsibilities of the manufacturers and data keepers, but i don't think -- just because in information exists on a particular device, you know, what does we do 20 years ago? when we didn't actually know if the information was somewhere that we might be able to access it. i think we're spoiled with the idea that everything should be open. >> there's a pragmatic solution. they'll open this phone within apple's headquarters, take a series of screen shots the data wants, they'll print it on paper and give it to them. i think that is the right thing to do. they can do that. if there is data that can help

solve this problem of finding out who else was involved every american wants that ajsz is screen shots on paper. >> once they do that -- this is going to be the first of many, many. >> the deliverable is the paper print of the screen. >> why not go to the next high-profile. >> apple -- within apple something wrote this encryption. that person, look with a team that actually makes these phones safe, can deliver them on paper. the deliverable is paper there's no key, no code, but they have to deliver this information. >> we shall see. seema mody has an earnings alert to get to. >> broke kay reports a strong beat, 29 cents adjusted. revenue also topping expectation at $574 million, you can see that stock outperforming after

hours, up about 4.5%, but a very different story for jax in the box. a big miss on earnings. same-store sales came in weaker than expected. qdoba, which jack-in-the-box owns, up. there's been talk whether which.lay's pain would potential be qdoba's gain, and in the press release, saying that the profitability for the quarter was impacted by a number of items including advertising costs which were 3 cents per share higher. the stock is halted, we're waiting for it to reopen. back to you. about ten minutes from now, thank you, seema. markets posting the first-day winning streak. he was known early in his career

for beaming now he's more about streaming, up next i talk to william shatner, who weighs in on the changing landscaped when "closing bell" continues. constant - ld remn a financial relationship with someone that understands and cares about your business. pnc corporate and institutional banking offers strategies tailored to your company's needs. know that our dedicated teams of local experts offer insight to help you achieve your business objectives. see how working with pnc can help your company grow at pnc.com/ideas ♪

we have breaking news to get here. seema mody rejoins us. >> some news after hours. they will aquick ingram micro in an all-cash transaction, approximately $6 billion deal.

this price tag represents a premium of 39 percent over the average closing share price of february 16th. both boards have approve this dealing, and we're looking at ingram microshares spike after hours. interestingly enough, another chinese company trying to move its money office china through m & a. exactly, and another deal despite the markets. priceline getting a pop today, the stock up about 11%, one of the game outs negotiators is also making some headlines. he's out with a new book detailing his relationship, and longtime friend leonard naeem myo. i caught up with him yet, and he spoke about the long friendship and the two of them had stopped speaking in the years leading up to -- >> he stopped communicating.

i couldn't communicate with him. so i don't know what transpired. i sent him a note he was both a private man and wrote books. >> and poetry. >> and poetry about himself. in the various documentaries i make, he was the subject of one called "mind meld." he spoke openly. we were -- we spoke like friends speak, totally openly about every aspect of his life. >> he's played such a number of characters. a lot of you know you from the priceline commercials, and "boston legal." what roles attract you at this point and why? >> younger roles, about 20-yea, 30 years --

[ laughter ] >> you know, things that -- i don't know. i'm -- i've got a comedy sense. i've got a sense of drama. i'm -- i'm fassel. >> is that offering you better roles? more roles? is it in a way changing so that you can never have a show be as broadly popular, for example, as "star trek" in the future? >> those avenues have opened up a marketplace for in my case a documentaries. i've been making a lot of documentaries of late. they're showing some of them. >> i know you use twitter. a lot of people wonder the future of twitter and have suggested, you know, maybe they would do better if they charged users a fee for, you know, a couple dollars a month, something like that, would you

pay a couple dollars a month to use twitter? is it valuable enough that something like that you would be willing to do? >> difficulty in the social 3450edia things, and i've attempted an experiment here and there, is how to do a financial model on it. so they sell the ads, they come up on your phone, and they get in the way, and to me it's more an annoyance, so how to finance it is a problem. if it were like $2, i think people would pay that. i certainly would. >> you would? >> i would. >> ted cruz, the republican hopeful for president, has suggested that captain kirk would be a republican. do you agree with that? >> you can't define republican these days. you don't know what republican is. what do they stand for now? the bottom baas we're hearing is i don't think conservative

rerepublicanism. if you want to stay to the dictates of the holy papers, then that's good, but we're in a weird political time, and astonishing statement. so what the definitions are of these various parties is hard to understand understand. what is donald trump advocating? what is cruz saying other than some strident square that can't possibly be done. >> one final question then. if you put your money where your vote might, for example, do you follow the stock market? >> i do. i do, to my sorrow. see the tears in my eyes? from all experience as a canadian looking at america, america has always survived and gone on. the market is down, the market will come back. that's my investing feeling. >> so you're buying these dips?

>> i've lost the money to buy the dips. isn't that everybody -- if i had sold at the high i i would buy at the dips. now would be the time to buy, you could think? yeah, i think we've reached the bottom. oh, we didn't. wide ranging, a lot of stuff packaged into that. kevin, what do you think? >> he makes an interesting observation about volatility. that's what i learned. you know, every individual gets nervous about investing when they have to go through volatility. that's what we forgot about the last two years. sure we've had three good days, but you can see in everybody's eyes the concern they've got. >> presumedably he has a few hundred dollars-year holding period, though. >> why is he worried about a three or six-month -- >> interesting he didn't talk to him, but yet he wrote a book. >> and he said he never knew

why. he's been in touch with nimoy's family and he was one of the most important people in his life. >> somebody knows, kelly. >> that's what i think, too. i wonder what else we'll find out. the. the dow making its third triple-digit move today in at least as many sessions. we'll talk about that next on "closing bell." we're back in two. man 1: [ gasps ]

man 1: he just got fired. man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems.

welcome back, time for the market's rapid recap. stocks surging for a third straight day. about the state of the economy and markets signaling it could change the rate hikes this year. it's the first three-day win streak, helping the benchmark index exit correction territory. one of the big catalysts, a big jump in oil prices. crude soaring nearly 30%. now over to seema mody for a news alert. >> we have two stocks on the moves. first one is devon energy after

announcing a second offering through goldman sachs. the net proceeds used toward bolster the company's position, funding the company's capital. of course this after devon reporting a fourth quarter last last night as well as disappointing growth going forward. another story we're watching is jax in the bock. the stock has reopened for trade and falling precip 'tisly after reporting a huge mission on earnings, weak same-store sales. second quarter same-store sales down 3% at the namesake restaurants. a big loser after hours. like you said, seema, they thought maybe they would get a lift from chipotle's struggles, but in this case not so much. we've got steve kroll, you said last year the ten-year yield was going lower. that happened. what do you see in your crystal

ball now? >> we think interest rates will stay low for a long period of time. two weeks ago, the fed was say four raid increases, probably based on the economic data today, we're back to one, maybe two, but the point was rates will stay low for a long period of time. we have the highest rates in the free world, especially our rates are higher than italy and spain. >> remember last week we got down to 1.51. >> 1.5 was probably it the market, even though the averages didn't correct until this year, we think it's not going to be a sweet 16 years. we did call for a rally, our head trader called for a rally last tuesday, but this is not this is not going to be a great year. we may test the lows are 1800.

>> so we knock around, go sideways, as the market, what, digests the fact this is a very slow growth economy at best, and therefore rates stay low? >> 100 percent. i've done this for 47 years, the chairman spoke, no one else spoke. now everyone else is speaking every other minute. just thinking you're going through 15 different increases they're talking about on every other day. so low rates for a long period of time. i think the dollar will stay strong. is the negative call in crude, that seems to be running out its course. the two thing you just mentioned that earns are going to roll over, actually there are plenty who would argue those two things going the other way. >> the theory is if we raise interest rates, i think our dollar will continue to do

relatively well. i keep going back to italy and spain versus the lower rate than we have, which is ridiculous. i think the dollar will continue to be okay. that would sped to more profitability, yet they're not participating. the book values are being questioned. i would think if there's any hope they would get 50 basis points to work off of, that we would see some rally there. >> you're 100% right. as of a couple weeks ago, or really in the fourth quarter, everyone was anticipating several rate increases. one would be disappointing for some of the banks, it's selling under book value. we think they're okay, it can laically city basin and -- i'm a buyer. we just didn't like them last year, because everyone was so excited. we thought the market had to have a 10% correction. i've done this 47 years, and

i've seen 38 10% corrections. >> >> it's just -- you know, the banks we think are okay, but it's not going to be the three or four increases that people expect. >> market certainly coming around to that view. >> it's a 380% -- >> how do you manage to make a goff of it, steve? thank you for joining us. good to see you again. how would you like to be stranded on mars? one virtual reality company is now deliver that experience. up next a look at this interactive adventures. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder.

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well come back. 20th century fox is taking the second screens concept to a whole new level. they want to immerse you into the world of the martian movie, in devices like samsung gear and oculus. it puts you in the martian's shoes for an interactive experience. mike dunn joins us. welcome to you. i have to expect like we could be doing this in virtual reality or something. this is the next frontier, isn't it? >> it is. we at fox think this could be an entirely new medium. we've shown initial tests to

consumers, it's been a mind-blowing experience. so it's really exciting. >> though this is a departure from people certainly buying a ticket and showing up in movie theaters. is it meant to complement the theater-going experience or be a product in and of itself that you use in your living room? >> i think there's a lot of different ways that virtual reality will be deployed. there are tethered systems on the near horizon that will have more interactivity. there's obviously mobile experiences that are out now that will become more immersive. with "the martian" we felt like this would be a great brand extension to the movie. it was produced bid ridley scott, so it has ridley's thumbprint on the content, the martian vr experience was

directed by rob stromberg, an academy award-winging director, special effects specialist. between the two of them, they have put a stamp on this that is just in keeping with "the martian" movie, but also augments the experience dramatically. >> i real a couple reviews that were pop. they enjoyed the feel of it despite a bit of motion sickness i'm wondering, longer term how do you monetize this? what is the business case for investing so much in this new palace form? >> well, with "the martian, we took a different route than most companies. most studios i think are really in the promotional space, but with "the martian" we designed this content to be sold to the consumer. part of that is that if we have commercial content, we can help

shape the landscape as it evolves. you know, i think it's -- the bo bull case really starts with the mobile know. there's $4 billion mobile smartphones around the world. >> yeah. >> and with a slight peripheral from, you know, free google cardboard to a samsung gear vr. your phone can provide a vr experience that -- that will be mine-blowing, so, you know, the penetration can increase dramatically. it can go really fast. >> well, we can't wait to see what else comes of this effort, mike. thanks for joining us. >> thank you very much. >> mike dunn is president of 20th century fox home entertainment. you can check it out. much more on "the spark" cnbc.com/thespark. a market alert that hits on oil. we know what this might be. what's happening to the inventory? >> reporter: oil stocks unexpectedly falling 3.3 million barrels so a surprise dropdown.

traders were expected a build crude gaining a 5.6% in the regular session with the after-hours move and now up 7.6%. back to you, kelly. >> wow, okay. again, another factor to keep an eye on. thanks. american express may be interested in crushing grapes any time soon. the credit card company has been refunding clients who use their cards to buy wine futures and what may be a wine ponzi scheme. up next, how many millions that could cost amex and tomorrow apple co-founder stove wozniak reacts to a court ordering them pack the iphone and one of the san bernardino shooters. that's tomorrow at 2:00 p.m. eastern on "power lunch." don't miss it.

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welcome back. bernie madoff is most associated with the word ponzi scheme but for some people pinot noir may do the same. the latest scheme involves wine futures and american express may be on the hook for customer refunds. robert franks, tell us what's going on with this story. >> reporter: the fbi is investigating claims that a major california wine merchant may have been a multi-million dollar ponzi scheme.

premier crew filed for bankruptcy last month after clients said they bought wine that was never delivered. the company's bankruptcy liz $70 million in debts and $7 million in assets. more than 9,000 creditors including many of the richest wine collectors in the world, among them billionaires bill koch and jeff greene. some buyers are out over $700,000 each. premier crews owner john fox has filed for personal bankruptcy, claiming up to $100 million in debt and under $50,000 in assets. his attorney declined comment. american express may be the single largest creditor since many customers bought wine with their amex cards and have since gotten a refund. amex declining comment. >> someone like madoff, kevin, because the wine bubble is popping or no? is it totally unrelated? >> no, it's unrelated. the wine industry and particularly futures are based around first premium growths and burgundy wines, for example, that are very, very rare, only 800, 900 cases every year. if you're really buying futures

an i've been doing them for 20 years you know who is holding the cash and you know exactly what ponsion you're trying to buy the wine from. >> ponsion? >> the french guys have the wine and there's a huge amount of trust and they never ever screw their customers. this is worse than the oil industry >> you make an important point. when the financial tide recedes we start to see a lot of fraud, a lot of speculation in these very high-hend markets like we saw in 2008. >> thank, robert, robert frank. more "closing bell" right after this. ♪ they say that in life, we shouldn't sweat the small stuff. but when you're building a mercedes-benz, there really is no small stuff. every decision... every component... is an integral part of what makes the 2016 c-class one of our most sophisticated cars ever. because when you're setting a new benchmark for refinement, it is the small stuff...

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welcome back. it turns out the story of the quarter for jack in the box was not about chipotle but about mcdonald's if you read the press release. >> blaming a lot of aggressive value offerings from competitors and they said competitor messaging around the launch of all-day breakfast had some impact at jack in the box stores between 10:00 a.m. and noon so clearly feeling the bite from mcdonald's initiatives. >> kevin, i know you're a huge mcmuffin fan. with a nice pinot noir.

>> i'm really about the salt and sugar these days so i watch what's in those things, the oil drawdown bodes well for tomorrow's equity markets even though they shouldn't be correlated. a huge debate about the direction of oil. >> excellent point. huge move after the inventory drawdown. thanks for joining me on "closing bell." "fast money" begins right now. live from the nasdaq market site overlooking new york city's times square. this is "fast money." i'm melissa lee. tonight on "fast," confused about the market? well, we've got three stocks that are set to break out whether the stock goes up or down. we'll give you the names and it's the talk of america. apple ceo tim cook pledging to take on the feds in a privacy fight. this could be a very big issue for core investors and jpmorgan sounding the alarm on global markets saying the recent moves are out of control. the man behind that call and why the move in gold has him so worried about the rest of the market. but,