unveil his newest space ship tonight. tonight. >> cool. >> i want a space ship. >> i'll ask about apple too. >> thanks for watching "closing bell." i mean, "power lunch." "closing bell" starts right now. >> yes, welcome to the "closing bell" i'm kelly evans. >> and i'm bill griffeth at cnbc headquarters, i hope you can join us at that time and stocks on track to post the biggest gain since november, which is very exciting to brian sullivan. let me show you the dow was up 2.5% roughly to begin the week we're now down just a fraction right now. the nasdaq is the big gainer, up almost 4% for the week to begin the week and telly it's been a real tousle, these are the three

down components, home depot, american express and walmart are duking it out to see who can be among the first and among the worst, boeing and caterpillar. >> you are working that wall, bill. >> i'm working the wall today. >> i'm upset you're not here but this is a pleasure to watch. the question for everybody, are we seeing a near term bottom in the market? we'll ask our chief economic adviser at allianz coming up. >> the department of justice filing a motion to compel apple to assist the fbi in unlocking that iphone one of the san bernardino shooters. is apple being unpatriotic by fighting this court order? we have both sides of this very contentious issue in a few minutes. yahoo! shares are also moppimo popping after a strategic review committee has been formed.

david faber will join us with his take on this. >> a new report out on oil demand, jackie has that story for us from the api, right? >> that's right. good afternoon. the api is reporting that crude saw the highest number of deliveries in january in eight years. it's not surprising with crude oil prices under $30 a barrel and national average for a gallon of regular, $1.72, according to aaa. obviously we would see demand pick up when we see prices this low. refineries are making more product and more people are hitting the road taking advantage of these low gas prices even though seasonally they don't do that in the winter. api also reports that crude inventory's total stocks ended january at about 500 million barrels, that's the highest january inventory in 86 years. if you're refining product and storing it, that's not going to help the glut we're dealing with. the takeaway here, low prices

boosting demand but probably not enough to make a significant dent. back to you. >> thank you. we'll see how markets do in the electronic shade thtrade this a. nancy from heartland financial, juror than corpina from heartland -- are you with heartland too? >> i didn't think so. >> meridian equity partners. >> and rick santelli with heartland financial -- >> no, but i'm in the heartland. >> in chicago there. the big question for traders with this comeback has been is this rally for year or is this just a bounce and are we destined to continue lower? where do you stand? >> i'm not buying into this rally just yet. there's so many different factors here. one it was a short week. a lot of activity into four days. we've had a lot of volatility both on the down side and upside and volume hasn't supported any of that. i think the activity in the last two days had been the most

healthy activity we've seen. the most hasn't done that much. we're starting to build a little bit of a base. we need to see if that will continue over time. the bounce off 1812 last week was a technical bounce and the issues we spoken about over the past few weeks are still here. there's nothing different or changed from last week to this week. interestingly enough, as we get into next week, monday is going to be a very -- nonevent day so to speak, not a lot of earnings or economic data. we're going to see on monday if this market is really able to stand up on its own. >> fair enough. we were just talking about oil enven tris but cash inventories are rising. i was wondering if you could speak to this for a moment. it steemz a lot of people have raised cash balances relative to stocks in this country in the last four to six weeks. what are you seeing? is this going to last? >> i might disagree slightly, john. i think two things. i see a lot of valuation coming our way.

a lot of companies that historically may not have been within our reach because they were more growth oriented and had higher valuation levels and secondly, even though i am a fundamental investor, i have since the year 2000 used the demark indicators which are not technical indicators as much as they are price exhaustion indicators and there are a number of buys that are popping up, not the least of which is the industrials which put in a buy in mid-january, s&p is setting up for a buy and theness d nasdaq is clearly in buy territory. there is plenty of cash on the sideline which creates opportunity and demand for stocks as we move forward. i would add one last thing, stocks are yielding well above the 10-year and historically this has been a great time to own stocks. >> yeah. >> mentioning the demark indicators old friend tom demark

there, shout out to tommy there. what about the differential between the yield of a 10-year and stocks, it's often considered to be bullish for stocks. but what does it say about the temperament of the treasury market, especially when you consider the cleveland bank president said she thinks the economy is strong enough to withstand rate increases this year? >> i remember pretty much every other guest we've had on since 2011 saying the economy is stronger. i would think it is. it's not a question of how strong the economy is in my opinion. but how much more growth we will give up in the future if we don't alter policy today. yes, you can't have it both ways. if the economy in a normalization process of a mere 25 basis points is going to create as much anxiety as we have seen created, then there's bigger trouble. i don't necessarily see it that way. i think it's more of an investor

class kind of throwing up their arms and i think they are rightly been conditioned to act this way. they seem to get what they want. >> i was just going to say, i know a lot of people are focusing on the quarter point rate hike last month. if anything that's the latest in a series of tightening moves, whether private or economists or what have you, could be two to three percentage points total, fed tightening we've already seen, just it's been unconventional ways. that's one of the most -- highest tightening cycles we've seen in the last several recoveries here. i don't know, i'm not buying it. i think we can go the other way and look at the various forms of easing and continued leverage and sneaky kind of perpetual repos and say the easing was much bigger. i think there is truth going down the road that there's much more going on on less accommodation, we can't even use

the word tightening yet, seriously. one example, down here everybody is aware of, it's part sec, it's that leverage and margin are already being tightened. if you can't have as much margin for a variety of rules and there's more rules coming, that is a form of less accommodation. it really is quite behind the scenes. but i think in the end, the real issue here is the united states needs to walk this alone. i don't think the japanese and don't think the europeans and draghi and chinese with their big cities that are empty and all of that money spent, there goes your productivity. walking this one alone is a good thing. if the rest of the world wants to be that type behavior, our economy will shine that much more. normalization isn't only needed, i think it's sent for all of the generations that follow ours, kelly, that would like a better productivity level so they can do more with the money they earn in the future.

>> thank you all. have a great weekend. >> thank you. >> let's get to yahoo! shares building on this week's gains, rising today on news that the internet company has hired financial advisers and formed an internal committee, committee of independent board members to explore strategic options. there's that u femmism again. >> it's not like they didn't tell us before, back on february 2nd and 3rd as well. they made it clear or so they thought, in a press release, that they were exploring strategic alternatives for the core business. shareholders didn't buy in and they have come back and made it even clearer, indicating the independent committee and addition of more advisers to goldman sachs and jp morgan already were working to potentially sell the core business. here we are. i would reference our interview with marissa mayer on the third

of february where she said i'm focused on the core business but the board is doing their thing when it comes to potential sales. >> well, to be clear, the exploration of strategic alternatives is something that's -- not a member of the board but something that will be led by the independent directors. >> and it is led by the independent directors. still some question marks here but one thing, they are making outbound calls. they've been registering interest to those who seen press rereports and said we might be interested and verizon made no secret it would like to examine the asset. there may be many others but they'll get outbound calls if there's any interest or isn't among both strategic buyers and potentially private equity firms. a couple of things that add a level of complexity, including the ownership in yahoo! japan, the most successful yahoo! run

by softbank or largely by soft bank. that stake alone worth perhaps as much as 5 billion after tax. does it take behind if you sell the core business? no buyer really potentially will want to own that stake and it's not clear that softbank will want anybody else to own it as well. still a lot of this comes back to the 384 million shares in alibaba, they are on the road to pursuing this reverse spin of its core business. that will become a public company. you leave behind the 384 million shares in alibaba in an investment company governed by the 40 act and figure something out for yahoo! japan. we'll see what creates more value and whether or not they get more bids that they feel give them the certainty, certainty that they can say, okay, let's get rid of this business. for her part, marissa mayer seems to be focusing on whatever it is, the third plus year of a

turnaround at this company. kelly and bill. >> david, i just wonder if this could be interpreted as anything but a vote of less confidence in marissa mayer, they have to avoid conflicts of interest to pursue strategic alternatives but it seems a long winded way of tip toeing around the obvious problem. >> my question exactly. >> i'll try to answer for both of you. i think it's a great point. you get different reads from different people, depending on who's paying them as well, i might add. some people say the board and miss mayer are very tight, on the same path and others i've spoken to indicate there is division there. you do have the board or part of it doing a big deep dive here on whether or not to sell this company, what does that say? you try to keep morale up and you have to focus on that. there is also the prospect of another proxy fight in the future for this country, something i think today's release was designed yet again to try to perhaps stave off. that in the form of starboard an

active investor here writing many letters, saying first spinoff alibaba and then don't and push them to sell the core business. >> clearlily they have a pr problem when they spend one day at a developer's conference trying to convince developers to develop apps for their service but then the very next day they bring up the whole notion that they've got to rethink the strategy for this company. where's the incentive for these developers when they don't know where the company is going? >> those are many of the things they are dealing with. there's no getting around the fact that you are focused on this potentially being owned, the core business by another company. and i think a lot of shareholders would prefer that but that may not happen. you may not see -- the numbers that come in and bids that come in that are commence rat to the advise that billion dollar at a six multiple will be valued at $6 billion.

we'll see where the numbers come in. it will take a few months, let's call it four months or so, but we'll be watching and monitor and talking some more. >> continuing to work it. david, thank you so much. >> let's good over to seemaxts modi for a marketplace. >> we have our eyes on shares of icon enterprise, down over 11% aftghanistater standard and poo reducing a significant amount of value. a reminder that this is the publicly traded vehicle of iep, down better than 11.5%. kelly? >> he's double down in some cases in these investments. 45 minutes to go in the session. we talked about oil inventory numbers off the top. crude is weaker, down a buck. i should cite the real number, not the one on the board. >> the dow is down 48 points,

s&p is down about 3. >> presumably, stocks will follow oil in that regard. coming up though, new developments in apple's court battle with the fbi. we'll talk about what happens next in that case that could affect millions of iphone users. also ahead, with a better week in the market, mohammed el erian tells us if volatility is really behind us. ♪ okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs

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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. the fbi and our entire government has become a bureaucracy, old as far as technology is concerned. this has to change. do you think the chinese think twice about hiring a hacker with a mow hawk or tattooed face? no. >> that from john mcafee last hour. you have may have seen that live interview with our friends or power lunch. he's no fan of the federal government any way though, kelly. >> he volunteered himself as one of those hackers saying he could crack open the iphone in three weeks. there have been big new developments in the tech case, everybody is watching today.

apple versus the fbi. >> the legal battle between the department of justice and apple is continuing this afternoon. the department of justice a little while ago filed this motion to compel apple to comply with the court order that would require it to cooperate with the fbi and give the fbi access to the iphone that belonged to the san bernardino terrorist, far ook. there is tough long for apple. take a look at this phrase from the u.s. government. they say apple's current refusal to comply with the court's order despite the technical feasibility of doing so instead appears to be based on its concern for its business model and public brand marketing strategy. that guys is the u.s. government

accusing apple of trying to make money and improve its image at the cost of the investigation into a terrorist incident. that is very tough stuff from the u.s. government here. meanwhile this afternoon, we also heard from the white house on this weighing in on the side of the fbi. >> the president has made that investigation a priority because he wants to make sure we can learn everything we can about that situation so we can take the steps needed to protect the country. and that's exactly what fbi investigators are doing. >> we're getting information on what the time line is expected to be. we're expecting that apple will reply by february the 26th and after that the two sides, the government and apple will continue to fire paperwork broadsides at each other through the early part of march then a hearing scheduled on march 22nd at 1:00 in the afternoon. this is going to continue now

for about a month, the standoff between the u.s. government and apple over whether or not the government will get access to the terrorist's iphone. >> we also haven't even mentioned that al gore, the former vice president of the united states, a member of apple's board. we reached out to apple and al gore to find out where he stands on the fbi request and haven't heard back. we'll bring that to you as soon as we do. you can see the other names there on apple's board but al gore in particular could be in a tough spot here. >> absolutely. the pr battles going on at the same time the legal battle is going on. you'll look at the pressure on the board of directors, these are prominent people in american corporate and political life. how do they feel about the stance that tim cook has taken? we don't know yet. i would be interested to hear from al gore whose position, we haven't heard in a while. all of these people will be expected to weigh in by reporters who will start calling

them this week. >> one quick point here, apple really -- it's interesting the doj is already coming out with this proposal to compel them to comply because apple hasn't responded yet. we have tim cook's public statement but don't have their response in court. that's not due until next friday. already doj is assuming they know what apple's response will be in court next week. >> they read tim cook's posting on the website like the rest of us do and they say in the motion to compel, that based on that web posting, they assumed that apple is not going to comply. therefore they are filing this motion to compel. this is the government being aggressive here, there's an active investigation into a terrorist attack on u.s. soil. we need to know what was on that phone, for example, in this motion to compel, they say that the two shooters communicated -- one of the shooters communicated with his wife saying here that they have evidence that that

communication possibly took place on this iphone but they don't have the contents of that communication. they would like to know what he said and know where he was, who he met with and any kind of communications or pictures that are on that iphone. all of that could be very valuable in this information. the department of justice anxious to get a hold of it. >> both sides taking a tough stance, the question has been asked, is apple being unpatriotic by not helping the fbi break into the phone of the san bernardino terrorists. >> randy zellen is a prosecutor now in private practice whose experience includes patriot act cases and david kennedy, ceo of trusted sect, an information security firm. david, i want to start with you, you're sort of the pro apple guy in this case. my question to you, when we question their patriotism, where do we stand on the issue of

protecting the bad guys and the terrorists here? they seem to have a safe haven then if apple is going to stand its ground in protecting the security of all of its customers which includes these bad guys, presumably, right? >> you're right in some sense. the problem you face right now, apple designed a secure phone and that phone has the information protected on there. i would love for apple to go and pull this one specific piece of information that they need off of this phone and be able to hand it over. tim cook agrees with that. the problem is that this sets precedents from here on out that apple must provide methods for the government to actually go into these phones and devices wherever they please in order to extract this information and be able to pull it. which means they are starting to remove a lot of the protection and security that we rely upon from government eavesdropping or other countries that may be hostile to us from eavesdropping. this is a really big precedent

and problem and something that apple is putting their foot in the stance with which is noble and patriotic in my opinion. >> i have to say, it does seem apple is courting this fight. they could have done something private to deal with this instead of making it public and drawing attention from lawmakers from washington from all sides on this. do you think apple is being unpatriotic? >> 140%. i'm someone who was a criminal defense attorney. i live breathe and die with the constitution. but the hell with precedents and message you're sending. if your customers are dead from a terrorist attack, you're not going to be selling very many phones. what's the preferred breaking news here? next week the phone is unlocked and terrorist attack is thwarted or three weeks from now there's a terrorist attack and we find out there was a message that went to mr. farook's phone. >> isn't that a little extreme

though, randy? come on. we're talking about one phone and one case. and i get the whole argument that they should be patriotic and all that, but they are trying to protect their customers at this particular juncture and it does set a press debt. david and others are correct in that. it does set a precedent if they do unlock this particular phone, come on. >> i have two responses. one, as a human response, that's very easy for us to talk about in a vacuum. but tell that to someone who lost a loved one in a terrorist attack. in a legal standpoint, like judges don't give advisory opinions, you deal with the moment and in this moment, there's absolutely not even a legal reason. remember, there's no defendant which means there's no fourth amendment privilege and no fifth amendment privilege, the defendants are dead. what we have to do is look at

the greater good and greatest good which is to protect this country. >> david, the risk is that apple could lose here. >> that's a risk that then is going to basically set the government to eavesdrop and intercept any communications we want and the language that came out today says that apple needs to comply because apple actually created the code which means from here on out, any other code they need to introduce needs to have a way for the government to go -- that's terrible. that means anything that the government wants access to, they need to provide some way of going about getting that and they can do that. a good example is the newer high phones have a feature called security enclave, they have to backdoor that and using fear for this, the exact reason randy is quoting this is the exact reason they are using this exact case. use john mcafee and get the data in three weeks if it's that alarming. it's going to take apple equally as long. why not use a third party to do this instead of having to go to

the manufacturer of that, set legal precedents, they are using fear to really instill the back door all encryption and security and you name it. this is a major, major problem and it's not one terrorist's phone but our future of privacy in the government in and around the world. >> clearly i'm playing devil's advoca advocate, but david, can't you take each of these on a case by case basis, unlock this phone and call it a day? why do we have to assume that this leads to other problems down the road? >> then can the fbi put assurances into their court order that states this is the only time we'll ever look at this? >> what do they do? >> they'll allow apple to make the decision from here on out whether or not they allow access to the phones moving forward. but this one specific case, if we need that, maybe that's a way to go. they won't do that. they are using this as a method to use this in the future and doesn't apply to apple. they are battling it in front of every other major corporation that produces any type of code or security.

you're essentially talking about the entire downfall of privacy. >> let me just interrupt. this is just happened. donald trump speaking in south carolina has apparently called for a boycott of apple saying something to the effect of quote, boycott apple, tim cook is looking to do a big number to show how liberal he is, in other words, implying, randy, that the public, if they feel apple is wrong in this case, should put their money to some extent where their mouth is. >> well, look, i can only hope to god it doesn't come down to apple being wrong and i think the argument is a great one, which is case by case basis, let's deal with this case. let's get this phone unlocked and leave it for next week, next month or next year to deal with the next one. but let's deal with what we've got to deal with now. >> trump's comment should scare the hell out of it. politicians have no idea what's going on with technology and the

implications of it. we should be rising up and making a bold statement about this across the board. this isn't a one time issue but will impact our generations in the future if this sets legal precedence. >> the opposite of a boycott you're encouraging people -- >> trump has no idea what he's talking about. no idea. >> david kennedy, this story just keeps -- >> such an important story. and both sides truly have valid arguments at this time. let's continue on, we're getting late here, 30 minutes to go as we head towards the close, with the dow down 36 points and nasdaq doing pretty good today. >> up 15 points. >> the best performer to the upside. had a 4% gain going into this week. >> facebook meanwhile is reportedly getting ready to monetize its messenger. what that could bring to the company. >> what south carolina voters

decide tomorrow could be make or break time for some candidates. we'll go live to john harwood after this. here at the td ameritrade trader group, they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store.

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the six remaining candidates face off in south carolina primary tomorrow, john harwood is in charleston where the heat is on for sure. >> reporter: bill, this is going to be a fascinating result 24 hours from now in south carolina. here are the stakes.

you've got three leading candidates, donald trump and ted cruz and marco rubio. if you look at the averages on real clear politics, they are in that order now but there's a lot of volatility fluidity within that last minute unpredictable developments, including an endorsement from ted cruz from mark sanford, the former governor, now member of congress and donald trul p has made the statement you were talking about, calling for a boycott of apple. he's got an amazing ability to grab the headline on the hot story of the moment. yesterday it was the pope. does he get some traction from that? donald trump under performed the poll standing in iowa but overperformed in new hampshire. if he can do that here he may be off to the races by crippling the other candidates, but the hope you hear from the other campaigns, the donald trump may be receding 'little bit and then you have a close fight between ted cruz and rubio for second. that's of consequence who comes

out of there. marco rubio's hope to consolidate establishment support. ted kuz wants cruz wants to mak two-man race and john kasich, who i interviewed yesterday who helps to pass jeb bush. jeb bush may have very bleak prospects out of here if he can't get at least get third place. but john kasich could pass him, that would give him some strength as the race moves beyond super tuesday to the midwestern states, michigan, next door to his home state of ohio and then ohio on march the 15th, which is a winner take all state. a lot of moving parts and on the other side of the country in nevada, hillary clinton is trying to hold off bernie sanders in the caucuses there. he has built up a head of steam since new hampshire, a lot of fascinating developments. when we come back on monday, we'll have a different race to look at. >> unbelievable. >> lots going to come out of

these two key states tomorrow. thanks, john. 25 minutes to go here. dow is holding on to a decline 42 points and s&p is only down two. as you pointed out earlier, the nasdaq is up. interestingly, the transport is up by a point. >> interesting as oil goes lower today. up next, a leading trader we will tell us what he's watching on wall street as it wraps up another wild week here. >> and mohamed el-erian chimes in on when we can get a relief on market volatility.

in washington just now, president and mrs. obama are entering the great hall of the supreme court to pay respects to the late justice antonin scalia whose body lies in repose. this is the public portion of the official mourning for justice scalia who passed away last saturday from a hartd attack. the formal funeral will be celebrated tomorrow in washington there. and vice president biden will be attending that service there.

kelly? >> and we bring in our john harwood as well, john, it's interesting to see the fight break out within hours of scalia's pacing with who the replacement will be and lately it seems the president or white house are trying to signal perhaps it won't just be a idealogical appointment, they'll try to find somebody with bipartisan support? >> no question, they want to make it as difficult as possible for republicans to resist consideration, much less confirmation of this choice. so you can expect that he's going to go for the kind of consensus pick that would maximize his chances of movement. we've heard from all of the republican presidential candidates urging the senate not to move forward. this is something that's very appealing to republican conservatives to say we're going to stop president obama from putting a liberal justice on the court and mitch mcconnell came out saying we're not going to

move forward. lately there have been cracks in that facade, grassley may give a hearing to the president's choice when we get it. lisa murkowski has indicated that should happen, a hearing should happen. that doesn't mean and those senators are not calling for an up or down vote or confirmation of that person, but the more pressure, the president and democrats can put on republicans the better the chances in the election both in the presidential race and swing state senate races, people like rob portland in ohio may find it difficult to resist. that's part of the president's thinking. another controversy is what you just alluded to, which is the fact that the president decided not to attend the funeral and send joe biden instead. >> that's right, john, for now the president and mrs. obama passing through there to pay respects to justice scalia. thanks so much. john harwood there. i'm on the floor here meantime at the new york stock exchange

joined by matthew cheslock. we have only about 20 minutes left in the session and this has been a pretty strong week. >> it certainly has. hasn't given back much. today we had a sell-off this morning and rallied and held gains, nasdaq is strong and technology is strong. very quiet end of the week so that's good for the market. >> even the small caps are up and transports up 11 points. how much do you read into these developments. >> transports will bump up against important levels going forward. maybe transports will be the next leader but without earnings, we've had a lot of rhetoric out of opec and the fed. what do we expect out of opec? probably not a lot. they are not going to cut production. the glut will still be there. >> real quick, i know you said it is too early to pay too much attention to the primaries, is it possible if there's an upset, bernie sanders or something

could spook the market come monday? >> certainly could. biotech is something to look at. we forecast them being beaten down until we get to the actual election. that could be a turning point. >> thanks a lot. have a great weekend. >> so we've had nice three-day rally to begin the week and two lackluster sessions including last friday because we weren't trading on monday. are we at the near term bottom right now? here to help figure this out, mohamed el erian. welcome back. >> thank you. >> amidst all of this volatility in the market, cleveland fed bank president said she felt the economy itself was strong enough to withstand a series of interest rate increases this year. do you agree with her? >> i agree that the economy is doing relatively well, not great but relatively well. i also agree it hasn't as been yet contaminated by all of the financial volatility we've seen.

so i think the market has gone a little bit too far in pricing the fed out of the equation. i think the fed is watching all this. and it will still be inclined to hike this year, unless the financial volatility contaminates the real economy. >> we're just reading about hedge funds pleased we finally have seen volatility because they've been betting on it for years an losing money and now that strategy has worked. your point is this storm we're passing through in terms of volatility may be passing now that things could get quieter again or no? >> i wish i could say this. we needed it, not only the strongest weekly gain since november but as bill said and matt just said, we've consolidated these gains. >> but fundamentally we haven't addressed the three things that have come together to form this perfect storm for markets this year. the global economy continues to weaken. we continue to have concerns about the effectiveness of central banks and there isn't

much patient capital around. we've lost sovereign wealth funds as a stabilizer. as much as i would like to say the volatility is behind us, i expect it will return in the weeks ahead. >> you add to that the slowdown in china the decline in oil, in part because of the slowdown in china and you could argue that the volatility in our markets is not because of what's going on here but what's going on overseas. what's the fed to do about that? if we've got a decent economy here, do they pay more attention to that or what's going on in the markets? that's the big dilemma. the inflation number today, .3% increase, that speaks to the fed wishing to continue to normalize as does the labor market. if the fed was making a decision based on the u.s. as a stand alone, it would continue to normalize very carefully and very slowly.

but the u.s. is facing two head winds, weakening global economy and volatility. that's why this fed is facing this very complicated equation. >> i've got to ask, do you support this whole get rid of the $100 bill? i didn't realize as late as '60s they made a 10,000 note that's still legal tender? >> that's where we're heading for two reasons. one is because of concerns about who misuses the high denomination, europe just took out the 500 you're overbill and we're going to a society that relies lesson cash. how quickly we get there, i don't know, but whether i support it or not, i think that's where we're heading. >> i guess some see it as a way to implement negative rates if we have to. thanks as always. >> thank you. >> have a great weekend. >> we mentioned this a couple of minutes ago but we have sounds of donald trump calling in south

carolina for an apple boycott. let's get straight to eamon with more. >> he's on the campaign trail and did just call for a boycott of apple. take a listen to the billionaire businessman. >> boycott apple until such time as they give that security number. how do you like? i just thought of it. boycott apple. here's the thing, the phone is not even own by young thug that killed these people, it's owned by the government. not even his phone, we don't even have to go that far. but tim cook is looking to do a big number, probably to show how liberal he is. >> very tough stuff from donald trump, singling out tim cook by name, calling him a liberal. this is one of those issues that doesn't break down by conservative and liberal traditional washington terms in the political debate. there are democrats for and against and republicans for and against. it's going to be fascinating to

see how the candidates all try to handle this out there on the campaign trail. trump clearly just now deciding this is going to work in his advantage and his audience will eat this up. interestingly i should point out. donald trump himself or his aides possibly do appear to be apple customers at least some of his tweets are issued by twitter for iphone. somebody in the donald trump camp owns an iphone. >> this isn't the first time, remember with macy's, that was all of last year he wasup set, it might have been something over illegal immigration. >> think about how this day has gone from apple. the department of justice filing a motion to compel and white house reiterating support for the fbi. now we have donald trump out there attack being apple and calling for a boycott. that is a bad series of events for apple. we have not heard from apple yet. we have asked for response to all of this several times today

and haven't gotten it. but the pr war here is starting to be tilt away from apple now and we're going to wait and see what they have to say to back up their side of this argument. >> >> tgif is all i can say. thank you. >> you would have thought the pope was enough to dominate the news cycle with trump for 24 hours and already -- >> november can't come fast enough for me right now. >> let's get very quickly, we've been trying to fit two hours of news into one hour here, so far so good, the dow down 34 points with nine minutes left in the trading session here. >> the nasdaq doing nicely, up 4/10 of one percent. despite another down day, jeremy hill, managing director says keep your eye on facebook gilead and target. ♪ every auto insurance policy has a number.

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i'm standing here at the post with target trades. watching this as a barometer of sorts. what's the risk for people looking at the consumer saying it looks okay and target is a

way to play that. >> we have great retail sales recently and it is two different stories, the fundamentals and story of the company. importantly the story of the company can be distinguished from something like a walmart because target has very little currency translation risk. if there is a economy that's going to benefit from that lower oil cost, more money in the consumer's hands, we've been waiting for that for a long time. i think it could be target. >> jeremy, people looking for income typically investors are talking about going to dividend payers. you think that investment grade bonds are still a good buy. is that a good idea? >> there's always duration risk when we're talking about investment grade bonds or any bonds or fixed income product for that matter but investment grade bonds returned 1 ptd 3%. stay away from bonds that are levered to the oil patch or banks supporting the oil patch,

that's been an attractive trade so far. a lot of investment grade bond traders are trading on a spread basis and leverage basis, not just clipping coupons. >> gilead and facebook are a couple of examples you think fit this theme? >> well, those companies actually are more a theme of growth over value in 2016 but not small cap growth. growth that's mature. so a company like facebook, we're seeing profit margins of 20%. obviously, advertising revenues are migrating into mobile. they have a very bright runway in front of them and we don't see anything kind of taking away from that in the near term. >> well, they are up another percent today. we'll leave it on that note. thanks very much. >> we're coming back with a closing countdown with the dow a little lower and nasdaq holding own to gains right now. >> right after the bell, more

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thanksgiving of last year with these gains, going into today, especially the nasdaq was up almost 4% and now up a little bit more than that. this is for the week how all three major averages have done. the first couple of days of the week had pretty good gains, crude oil slightly different story, wti, a lot of chatter about freezing of production of january levels and you see how volatile crude oil was for the week though, a gain of 1.4%, even with today's decline of 2.9% bob pisani who himself is a regular. >> you know what's important about this week. we had a rally and they didn't sell into it. remember what's happened for the last two months, every time we had even a two-day rally and that's all we've been able to put together, they sold into it immediately. on heavy volume. essentially we had side ways

action, modest downside. let's call it side ways action on much lighter volume. they didn't sell into it. the selling seems to have been exhausted at least momentarily. i'm not calling a bottom. we need weeks of this before anybody is convinced it's any kind of bottom. for the moment, it's good news that the selling appears to have been exhausted. >> let's not forget what's been calling the shots, that would be crude oil. we have to watch carefully how it responds to all of the news about opec wanting to freeze production, whether they are able to do that or not. >> that's right. look not only has oil trialeded find some bottom but the yen has calmed down. yen rising was the second -- i called yen the new loyal two weeks ago it was causing major problems for the global markets as well. that was other indication of global risk appetite. that's calmed down as well

european banks calmer. three sources of anxiety, calmed down. >> thank you, see you later. >> closing the bell at the new york stock exchange today, mark miles will be on "closing bell" next hour and nasdaq, it's the designers from new york's fashion week. stay tuned, hour two of "closing bell" with kelly evans and company. have a good weekend. >> thank you, bill. welcome to the closing bell. i'm kelly evans, despite today's session it's been a pretty strong week on wall street. we started off with big gains today and roughly hanging on to them. the dow is going out with a drop of 24 points. the s&p only down less than 1 point on the bell, 1917 is the level. the nasdaq in the green for much of the session, 4504. joining today's panel, evan newmark and tim seymour as well.

welcome to you. let me start with you and there has been some brightening of the economic data. do you think has happening sentiment? >> the expectation there would be no fed hike at all when we're sitting here in february, that seemed premature. no hike in march. we can agree to that. there's still a lot of time for the data to turn upward. what you're going to hear the fed say, they are data dependent and pausing in march is a great exame that. when they said in december they had a plan, economic data doesn't support it, plan would be off. therefore not moving in march. if the data does turn up, it's not i am probable they would make a move. data dependency is confirmed if they don't move in march what happens if fed rate hikes come back into the decision? >> it's not going to be pret

tixt the market has gotten too complacent about the fed being back out of the picture just because clearly if you look at fed fund futures they tell you yes and the loudest voices in the pundits world telling you the fed has made a major mistake by going. friday next week we get second quarter gdp revision and it will give you some sense at least where the economy was in the fourth quarter when people thought things were slowing. and next week you have durable goods and consumer confidence at least a little more to tell you about the health. but it's a side ways market with an ee mormous amount of volatility and this is a week to assess and buy volatility for next week. >> to recap what we've learned, industrial production data showed a little increase just month on month but still jobless claims fell. that was a pretty strong reading. the cpi, the core reading i think was up about 2.2%. >> we've been talking about this for a few weeks and data hasn't

been great, it hasn't been like the economy is gangbusters but the economy is not moving like an economy with a -- what is it, 1.7% year on the 10-year. that's not the way the economy is right now. part of the blame goes to the fed. i think the fed has made a total dog's breakfast of their communication policy. >> sort of an english phrase. >> it is an english phrase. >> we'll forgive you. you think their communication has harmed the growth rate? >> it's terrible, depending on who you hear from, they are saying different things. the only one kind of getting it right is what is it loretta from cleveland, the reason i think -- again, i'm not a fed person. you know, but the message should be we're normalizing unless data tells us otherwise. so far the data has been confirming a gradual normalization policy. but what's happened is that every two days you get james or

bill dudley or somebody else pops up saying something and i'm afraid they are looking more at the markets than at the data. look at the data. >> but don't the feds forecast -- don't the feds already sort of tell you they are planning to hike in 2016, that this is sort of their -- >> the bond market is saying the fed is wrong. the bond market since the beginning. >> that's the point of the fed being data dependent, relying on the markets to make these decisions in the interim, the fact that the 10-year has gone down so far, that's helping the economy. they would say, that's an example of markets doing their job, realizing we're data dependent and acting on it. >> either the fed is right or they are wrong. the bond market is telling the fed, you're wrong. but that's what the bontd market is saying. >> i think the fed is saying we're going to be data dependent and saying that all along. we don't have to say what we're

going to do in march right now and we don't know what's going on in june. i think what's also very interesting about this week is the fact that oil is now at least put in enough of a move. maybe it's basing here. i think it is and in fact, bank of america says $47 oil by june. that puts the fed -- they said energy was transit tri on way down. if we're getting back in, that may push them faster than people think. >> there's a lot of different factors that have helped the market this week. let's get to bob pisani on the floor. the transports were finally doing okay lately here too. >> this was a very important week, kelly. look what happened, going into monday, we had a one-day rally going and the s&p was still down about 9% for the year. the trend was down. look what's happened four days later. the s&p is up nearly 3% for the week and short term trend, let's call it sideways, that's a very important psychological change

and notable bounces in the most beat up groups, like ibms and hewlett-packards, all had notable bounces this week. even big global industrials, a little more modestly, northrup grunmans, there's been a change in the trading pattern in the last two months. every time we've had a two day rally it's met with heavy selling. the markets have been mostly side ways on somewhat lighter volume. no big selling into the rally. and that's great news because it changes the down trend. this is all very tentative, i know, we need to see this kind of modest side ways action before anybody is convinced this isn't just a temporary bear market bounce but it's a great start. next week we're going to hear from fed speakers and stan

fisher will be speaking and remaining retailers like macy's and home depot, round out the reporting season as well. walmart and nordstrom did not have good news and nordstrom was down rather significantly this way. i was happy with this week, most people should be as well. >> have a great weekend. it's interesting this time erngds season start getting a better read on the consumer, while it wasn't great, there was some interesting stories here, priceline came out with earnings and had the first day that s&p stock gained more than $100 because it's valued over $1,000 and talked about some positive tail winds from lower gasoline prices and gar min had a good day. there are some earnings that can point to maybe this consumer theme is starting slowly to play out. i think we'll see the debate go over the next few weeks and months this idea of actual versus expected inflation. they all agree the consumer is

strong and been resilient. are they going to wait until they see inflation start to pick up appreciatably whether they hike rates again or enough to rely on outlook? that's where the debate is and essentially it's an argument, are they going to be behind the curve or stay ahead of the curve as janet yellen has argued in order to make sure there's not abrupt tightening later on. >> must have responded somewhat well to the numbers -- >> the 30-year is basically flat. the yields went up and two to five-year range, the belly of the curve. but the longest end did not move and that tells you that the bond market -- i'm telling you what i think, much more of a function what the yield is than what the u.s. economy is doing. that is a strange thing. there are these kind of weird mispricing going on in the

market. i think going forward, in terms of housing prices and how the selling season goes, housing prices are going up and that i think will be the biggest tell for whether or not you're getting real inflation. >> we get home depot next week and an apartment building, this was in the general now getting into the single family housing market because they look at rates going up 20% the last couple of years and think this thing has to bend in the direction of single family homes. >> we're seeing some softness in san francisco and new york, i'm not sure this is the time to be chasing real estate. we do get housing data next week. i think there's going to continue to be downward pressure on yields but i wonder how low. with negative interest rates around the world and two of the three developed major bond markets, why shouldn't the 10-year have a bid to it. walmart and nordstrom are an indictment on the way two

companies have been running. i agree price line is positive. excurrently affect 29% on books and they seem to be on travel. >> if that was the leadership group last year, are we looking for that again this year because the nasdaq has outperformed generally this week? >> we would went in being way oversold and put in a bottom and show tech spending for the second half of the year. if you listen to these guys, maybe that's the message coming through. intel has been reasonably constructive. i don't think technology will give you like last year but the rally of last year in tech was four or five names and i'm not sure that was very healthy. that was kind of foreboding. transports, we've talked about that and financials. we need to see the strength or stability there. that's interesting. >> i'm going to break in here. hang on one second. we're getting news out of the eu from our seema modi i assume it

has to do with the deal in britain. >> talks in brussels taking place over the renegotiation of britain's relationship with the eu. the lithuanian president just now tweeting that an eu deal has been reached over the uk. we're still waiting for full confirmation from the eu president, donald tusk and david cameron of the uk. also waiting for details of this potential deal. that of course will help us understand whether british citizens will vote yes or no in the upcoming uk referendum which is slated for june. as soon as we get more detail, we'll be sure to bring them to you. >> thank you. evan is our englishman on the panel today. any thoughts on this one? >> the eu is a bit of a dog's breakfast also. >> everything is dog's breakfast. >> i think it's a good thing, i think it's good there noz brek sit or whatever they call it. what i'm looking at in europe is

really the realization that monetary policy is not working and probably won't work. at some point people will go it's not good for german banks that it's 20 basis points or good for german consumers or stock market. i don't know who it's good for unless mario draghi seems to think it's working. >> this is going to be a big test of market confidence in the next direction of central banks. they ultimately came around to support easing and these sorts of things. structural reform are the main thing here. maybe central banks are aiding and abetting the lack there of. negative interest rates the market don't seem happy at all about. >> i think politics, uk politics are emblem attic of politics around the world and here. they are getting more extreme around the edges and you're seeing more polarization because people are at a place where

central bank policy is left -- not just central banks. they are being overly villainized because at the end of the day we can't solve everything with monetary policy. we need to solve with fiscal policy but coming back to your question, we're here in a place where you're seeing central banks running out of that obvious tools and i think the political process there for becomes more complicated. the amount of time that these guys have or lease they are on is getting much shorter, we're seeing it in this country. it's in the political process. that's another big uncertainty for markets this year, it's one of the reasons why i think we have to trade side ways with a lot of volatility. i'm not in the camp of straight down. i think the world is a much better place than people think but i do think it's complicated and these are all headlines that the market does not want to see. we didn't have any this week. markets were quiet. >> and we'll bring you of course everybody as soon as we get official word on the deal being reached this came from the lithuanian president as seema

mentioned. >> there's much more next hour with tim seymour as well and stick around for options action, being joined by virgin group founder sir richard branson starting the top of next hour. facebook may be ready to unveil a new way to ramp up revenue, how they will monetize messeng messenger. >> a canary in the coal mine for uber and other startups. you're watching cnbc, first in business worldwide.

facebook may unveil the latest plan to cash in on mobile users, julia? >> talked about the commercial mess ander and now it appears they are gearing up to launch ads. according to documents obtained by tech crunch, they can send at as messages to people who already initiated a chat with the company. facebook wouldn't comment on this rumor reported by tech

crunch but our aim with messenger is to create high quality engaging experience for 800 million people around the world and that includes insuring people do not experience unwanted messages of any time. they want to avoid spamming its 800 million users but since the company has businesses on messenger, enabling customers to ask questions and receive updates, could to make sense to send messages with special discounts. just yesterday twitter announced new customer service tools offering a send to private message button for businesses to add to tweets. there's no question that the question of customer service is huge, this looks like beginning of a land grab. it depends what the ads look like, there have been other mess

eng assage services, kick, you can buy emojis of chicken fries -- >> don't pretend you don't use this. >> maybe i might have had a chicken fry. something like that is much more appealing than a banner ad that we're more customer -- >> your kids on this stuff? >> they are not big facebook users interestingly. our house is -- part of my personal policy, we're not keen on facebook, not big social media people in any case. >> what you think but reality of what they are up. >> the question i'm interested in, to what extent is any of this future revenue if it's incremental revenue embedded in the share price already? i mean, you have a situation where facebook is not a cheap stock and it's very highly valued and they always -- it's all in mobile growth all in

growth. i don't know how much of that is already priced in. >> julia? >> i think there has been expectation for a while that facebook isn't going to make money on messenger. 800 million users and the idea here is that if customers start using messenger as the way to interact with companies for all customer service issues, there is a real opportunity where it wouldn't be considered spam. companies could pay to reach messenger and as long as it's an opt-in thing, there is a big business opportunity. i don't think anyone really understands how big the messenger potential could be for facebook since right now it's effectively zero. >> it's a good point. thanks julia for bringing us details on that. we'll see when and if and how they end up -- >> is this going to reengage you with your facebook account? >> i don't think i'm what they are worried about. i'm not the target. >> you're like my super millennial, only thing connecting me and millennials. >> you're barking up the wrong

tree. >> john kasich explains why he thinks the market is having knee jerk reaction to oil prices. donald trump is taking on tim cook, calling for a boycott on iphone. we have the latest in just a moment. plus, the countdown to indy car season is kicking off today. we'll speak slexclusively to th man behind the indy speedway with 100 days to go until the indy 500. i am a technological breakthrough. this morning i read over 4000 articles on leukemia. in less than a second. (speaking japanese) i can understand euphemisms, idiosyncrasy and complex metaphors. i know every detail of every public quarterly report in the last 20 years. and i'm just getting warmed up. hello. my name is watson.

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gotta manage your risk. an honest opinion is how edward jones makes sense of investing. >> welcome back. republican presidential candidate john kasich has been creeping up in the national polls taking fourth place in the latest nbc news/wall street journal one. john harwood just spoke to him in the latest edition of speak easy series and sounds like he's weighing in on the market. >> reporter: that's right. john kasich is trying to survive here and get more favorable terrain when the campaign moves to the midwest and places like michigan and latest ohio. i asked him as an alum nus of lehman brothers, for his perspective on the drop in oil prices and resulting market

turbulence. >> you've benefited from the development of a major energy industry in your state. >> not as much as people think. we figure that out of the 400,000 plus jobs -- >> you got lucky. >> you want to know how many jobs we think are connected to the fracking industry, maybe 15,000. oil prices are way down right now. >> for consumers that's great. >> go to the pump and it's much cheaper to fill up the car. it caused instability in the market. >> i'm for low oil prices -- >> markets have been going up and down. >> are you concerned about that? do you want to do something to stabilize? >> i think frankly the situation with the american stock market is almost like the 24-hour news cycle. there must be children running this stuff. i'm serious. the fundamentals of the american economy as you know as an observer and smart guy, the fundamentals are not there that leads to volt tilt.

the volatility is being driven by oil prices and what we've seen throughout history, just because oil prices come down doesn't mean you have less economic activity. it's like it's a knee jerk. i just think the market is so jumpy and rejecting the sense of fundamentals. this economy is rickety and rockety and returns are not going to be that great. but that can be fixed if you get back to the formula. >> reporter: john kasich, of course, hoping to finish perhaps as high as fourth place in this primary, maybe beating out jeb bush. but here's his problem. we just saw a fresh demonstration this afternoon, he and every other republican in the race is running against a front-runner donald trump with a unique ability to seize headlines at key moments. he did it this afternoon on a key business issue, went after apple and tim cook for their reluctance to give american law enforcement the data on the phone of the san bernardino shooter. here's donald trump.

>> boycott apple until such time as they give that security number. how do you like? i just thought of it. pie c boycott apple. the phone is not even owned by this young thug that killed these people, it's owned by the government. not even his phone, we don't have to go that far. tim cook is looking to do a big problem, probably to show how liberal he is. >> we've got a very volatile south carolina race, will those remarks make a difference? we don't know but they will get covered not just by cnbc but a lot of other media today. >> john, i'm still stuck on what john kasich said about children running the market. he gets upset about the volatility and then proceeds to say this is an economy that's rickety and rockety. >> there's an overreaction to things even though you have an economy that is performing at a lackluster way that it's not

jerking up and down. i think that's what he meant by rickety and rockety. >> haven't heard that term before, by the way. >> positive but not when it comes to the market i guess. great stuff. thank you so much. john harwood in south carolina. more breaking news. let's get an update with seema. >> that's right, an update on the discussions taking place between european leaders and britain. the eu counsel spokesman tweeting there's still not an agreement while reuters is quoting a uk source saying a uk/eu draft agreement has makings of a deal. the lithuanian president and czech prime minister have tweeted that a deal has been reached. so bottom line, mixed messages coming from brus sels and the eu counsel spokesman tempering expectations and of course we're still waiting to hear from the

uk prime minister, david cameron on an update on this potential deal in the making. for now, back to you. >> seema, thank you, we're just saying earlier, this is par for the course when it comes to covering the eu. >> yes, supposed to be at breakfast they were discussing this and turned into brunch and now turning into dinner. it could be a long time. >> brings back such fond memories of the shen nan gans in greece, every 15 minutes it was a different deal. the whole thing is, like, we're the only people paying attention to this. most people -- >> we and the global market. >> people that wake up the next morning -- >> reporters covering it, it's 9:30 local time, something like that. 9:30 p.m., this could go until the wee hours of the morning even if it proceeds somewhat normally. we can expect to get -- it's like opec, like the fed. it's one of these agencies where there's so many members. >> and everyone is at liberty to say what they will. >> exactly.

>> time for a cnbc news update. >> here's what's happening at this hour. president obama and the first lady pay their respects to the late supreme court justice antonin scalia, they viewed his casket lying in repose. his funeral will be held tomorrow in washington. french president frhol lapd saying everything should be done to avoid a conflict. he made the comment at the eu summit in brussels. >> a march took place in flint today, calling for rick snyder to resign. flu cases continue to rise across the country. the centers for disease control reports the flu is widespread in 12 states. mostly in the southwest and northeast. but it does appear the vaccine this year is a good match for the viral strain that's

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welcome back, it wasn't just today that was significant but the whole week, one of the strongest we've seen in months after a difficult start to the year. the dow going out with a drop of about 21 points and s&p was down, it was flat. nasdaq was actually up by 17. other positive signs too in the transports too, oil prices were lower again. human resource startup in the spotlight this week, raised $500 million in funding last year and valuation of $4 billion and quickly came into a series of problems that ended with the ceo resigning last week. sources told the times that the company overclaimed to investors and created software to let employees cheat on onion reif

the sources. >> some decisions have been just plain wrong. the "new york times" writer who wrote the piece on zenefits, people weren't too happy, they seemed to say you went too far but frankly, if you look at zenefits and i would hope investors are demand gs more transparency out of a lot of these startups. >> i think as we get into this new climate in silicon valley where funding will get harder, we may see this, investors kind of looking -- applying more scrutiny to the companies before they fall apart or have these huge regulatory scandals or others problems that we saw with zenefits. what happened there was really this crisis that exploded after huge expectations. as you mentioned, they have a huge valuation and really really trying to amp up sales to

justify it and then things sort of fell apart because they were kind of moving too fast. >> where was the board in this? >> yeah, what was interesting about this, this was a four-member board and three of the people on the board were in management. the founder and you know the two co-founders and the ceo who has just taken over who was the coo. then there was one outside member who was from their biggest funder. after the ceo resigned a couple weeks ago, they expanded the board. but this is as you said, this is a company where it really seems there was not a very broad based board looking at these practices. you had a case where there were lots of kind of high flying officials from the government but not really many health care people. here it was a similar situation. >> you wrote about the problems of the culture within the company and as they were chasing

growth and chasing revenue, et cetera, is there an issue with investors? is the culture among the vcs also in trouble in the sense that the situation of the wool being pulled over their eyes or should they have been more demanding as you mentioned earlier in looking at the books of this company and understanding what exactly their business model was all about? >> yeah, from what i can tell, it's hard to know if this was a situation where the investors were pushing one way and the founders weren't listening or they were all in the same page like i've heard differing stories about where the investors were on this. we'll notice a new climate here. these -- like as funding kind of dries up, think founders will have less of a say. founders will be able to less choosey in terms of investors. we're going to see sort of investors having more power to dictate what happens in these

companies. >> bart, what evidence do we have that the founding will dry up? there's a lot of capital and everybody and their brother or sister are looking for the next facebook, next linkedin and there seems to be little -- look at the levels of funding that uber was funding the latest round, $60 plus billion. there seems to be this still real almost desperation to get in on next big thing and you know, i think zenefits thing is an indication of that. what am i missing? >> i would say uber may be more of the exception at this point. like everything that we hear from both investors and founders suggest that about late last year it became suddenly much harder to raise money, especially we saw kind of in the spring of last year companies were raising huge rounds, kind of in their late stages essentially in instead of going public, going public brings with it a lot of annoyances and

oversight and here they were trying to stay private and raise money as if they were at the staple level as being public. those kinds of big rounds will go away. and as a result, it will become harder because going public is still difficult. companies will have to go along with what they have in the bank. if they don't have much in the bank, those people will find it harder to raise money. >> and front page of the journal today reminder of that how many of these ipos are under water. i'm wondering, why was dave spector of venture capital firm sequoia tweeting how upset he was with your story, taking issue with the reporting and saying it was click bait and not journalism. >> this is a complicate d story. one of the things i noticed reporting it, it's difficult for people in silicon valley to say that a startup screwed up. everyone in my story -- no one

wanted to come out on the record and describe problems at zenefits, we noticed similar things with other companies. and it's people don't want to kick a start upwhen it's down. there were lots of problems at zenefits and he's essentially trying to remake the company. that's a good indication that something was broken there. >> well, it's going to be a tough one with state regulation for insurance and all of that. but if they can get it right, there's still a lot of ground to gain. thanks for joining us. >> thanks good to be here. >> well, we have more breaking news out of brussels. >> another tweet? >> we have now heard from the president of the european union, ahead of the eu, donald tusk has tweeted, deal, unanimous support for new settlements for the uk in eu. we're waiting to hear about the details, specifically around welfare benefits for migrants and trade, but this deal or

compromise as some may call it comes after two days of negotiations and also potentially reduces the likelihood of britain leaving the eu again. we've heard from the head of the european union that a deal has been reached. back to you. >> seema, thank you. >> we accept one of his tweets but tweets from the other guys who aren't good enough, is that what i'm hearing now? >> twitter can't monetize all of this, it's playing out on their platform. the substance of this is key. it's all about the uk basically getting approval from the eu to be able to deny some benefits to people who come in first couple of years they do come to britain. still an investor friendly outcome if it means they are putting off the worst case scenario, we'll continue to follow the story. coming up, much more of john mcafee's interview on fallout from the battle between apple and the fbi. first, we're 100 days away from the 100th indianapolis 500, the

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if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. welcome back, 2016 is a big year for the indy car racing series, the 100th running of the

indy 500 set to take place memorial day weekend. you own the speedway and series and rang the closing bell today to celebrate the countdown. you have the borg warner trophy, which is -- >> bigger than me. >> how much does this think weigh? >> 110 pounds, 80 of which is sterling. ensured for 3.5 million bucks. >> you do it. >> part of your training. >> do they lift it up at the --? >> no, they lift the milk but they can't really lift the trophy. >> it's fascinating to watch, you get down to bottom and people are absolutely flying. are you trying to upstage the daytona 500. in racing, that's on sunday and we're talking about indy car? >> no we're not trying to do

that. we love the daytona 500 but we do think the history of the indianapolis is pretty special. >> 100 days from that event. here's the question, we're living in a world where young people are driving less, moving away from gasoline engines and sport that does both of those things. what is the future of indy car? >> it's really bright. kids like extreme sports. we park a show car at an airport and it's like it just like sugar to ants, kids crawl over them and love it. they see the pageantry and scale of the 500 or any indy car race, they love it. whether they want to drive or not, it's extreme sport and thrilling. >> kelly wanted to ask you, what is the future of the self-driving self-driving indianapolis 500? >> why not drive a self-driving car into the mix. >> they crash and go over the bank and nobody gets hurt.

>> that would be good. >> last year you put in safety precautions because there has been cars that went airborne during some practices. are those precautions in place this year? >> more and more, we've tejer parts so they don't get in the air and risk to drivers. we're working on ways with the cockpit going toward. it's a dangerous sport. and that's kind of what they sign up for. >> aj, a nascar driver is not comfortable -- you had an unfortunate incident where a driver hit in the head with a piece of shrapnel while driving. when people are so focused on the risk from so many professional sports, what more do you think you can do to help keep everybody safe? >> we invest. we're working with great engineers and medical folks to systemically decide what risks we can reduce. the next big one which can't be this year, will be some sort of

covering jet fighter like to some extent to protect the head. >> it seems like you're getting closer to being sort of taking elements of jet -- aircraft into your designs. they are flying as we said earlier. 100 days to go. thank you so much, mark for joining us. what is going to be special about indianapolis 500 this time around? >> well, we're not going to tell you we have all up our sleeves but the talent will be serious and star-studded. the whole city is turning on like it does for final fours in the super bowl that was there getting thousands of citizens engaged. it will be very special. >> mark miles, good luck with all of it. thank you for joining us here at the new york stock exchange. >> opening the back door is opening a can of worms. mcafee saying if apple creates a back door to the fbi on the terrorist's iphone, the fbi won't be the only ones that will find a way in.

more mcafee next.

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really what the government is asking apple to do is to make every individual who uses an

iphone suspect susceptible to hacking by bad people, foreign governments and -- and anyone who wants. it's not just the fbi. here's the problem. the fbi says oh, well we can keep it secret. that's utter nonsense, utter nonsense. there are no secrets. >> that was mcafee associates john mcafee speaking about the potential fallout from the fbi's move to have apple unlock an iphone used by one of the san bernardino shooters. meanwhile, donald trump expanding on his proposed boycott of apple just earlier this afternoon, lately tweeting i use both iphone and samsung. if apple doesn't give info to authorities on the terrorists i'll only be using samsung until they give info. hopefully others will follow suit. he says our country need and should demand security. it is time to get you have to and be smart. boycott all apple products, he continues, until such time as apple gives cell phone info to authorities regarding radical islamic terrorist couple from california.

so, ladies and gentlemen, of the panel, this now brings samsung into the fray. we can assume that the operating system is an android operating system which brings google into this discussion. never really apple in the first place. in a way by taking the stand they have on this this has brought anybody with a mobile phone and operates one and could potentially be involved in some probe like this now into this issue. >> what donald trump did that? do you think -- >> i do. >> by the way, you know, i think there's a real problem when serious issues are being kind of, you know, batted back and forth as these political tools. i mean, this is -- this is the way, you know, like puppet dictatorships work where, you know, something comes up and everybody is like boycott them or do this, or they are anti-american or anything. these are kind of -- in my view these are very difficult issues that weigh kind of national security and civil liberties and they should be like thought through and discussed in kind of a thorough way, not tweeting

back and forth what the policy should be. >> i'm unclear. does the back door already exist that the fbi is unable to find it, or is it the fact that apple would have to create a special back door just for this investigation to occur? i'm unclear on some of the details of this. >> according to what i've read is that the issue, this iphone is locked, a 5s iphone, not the latest operating system, neither four-digit passcode. after ten attempts they shut down and wipe out the iphone if you try an 11th time so law enforcement doesn't want to do it. >> don't do that number ten. >> and said you have to get into this phone for us. apple says we can't do that. we don't know how. we could create a parallel operating system that allows us to do that, but if we create this and it kind of gets out there, then any potential phone now would have this parallel back door entryway, if you will, as i understand it, anyway >> the thing that fascinates me is take the specific thing

aside. if you really kind of put -- put, i don't want to say gun to his head, but if you put tim cook in a very difficult position, china is a place where they get a lot of their sales from, something like 35%, 40%. sales and the chinese government came to him with a similar kind of request, maybe not the same exact thing, you know, it would be interesting to see where tim cook would come down when -- right now at this stage there's not -- you can argue that shareholder capital is really not at risk. it's not really an investor issue yet. if you put it into a market like china, i'd be curious to see where he came out and where he would stand on the civil liberty for the national security issue. >> that's the argument that apple is making which if you take this to a country like china where, you know, surveillance is very different and there's a way for the government to get in, it will get in. they are trying to create some protections around that. it was a 5c in this particular case is being used, not a 5s and let's come back to the point what donald trump is saying and

it is relevant because even though this is an apple very specific position in some ways, if now this becomes a case of, well, what about the android phone and, remember, apple has much more vertical control over its plating system than google which has the huge proliferation of all types of different android platforms. perhaps they have actually relinquished control all together to the devices. >> the point that donald trump is making let's boycott this product. let's not even use this product, and i think to john harwood's point earlier he has a special gift for stealing the moment, right? right now everyone should be talking about where the real action is in south carolina tomorrow which is the fight between cruz and rubio, right, an instead we're talking about donald trump is not using an iphone he already paid for anyway. already paid the monthly contract on it. >> i don't like the whole idea of boycotts that he invented on the fly and while he's on the stump. to me that's not -- that doesn't show -- it doesn't give me great confidence in his ability to

solve naughty and difficult issues. >> i think we'll find out what kind of phones everybody on the campaign trail uses. more "closing bell" in two minutes. we'll talk about earnings and give you a little preview of next week right after this.

you're watching cnbc, first in business worldwide. monday, the latest technology from the mobile world congress, including a one-on-one with intel ceo. "squawk on the street" monday at 10:00 a.m. eastern on cnbc. just want to bring this to

your attention. treasury secretary jack lew meeting with puerto rico bondholders including some names that you see there, kyle bass, steve rattner and steve with sdwhartsm schwartzman saying all needs to come to the table. so much to pack in. that does it for us on "closing bell." hand it off to "fast money" which begins right now. "fast money" does start right now, everybody. live from the nasdaq market site overlooking new york city's times square. traders on the desk are tim seymour, brian kelly, dan nathan and guy adami. tonight on "fast," the biggest controversy in america just got bigger. both the white house and donald trump turning up the heat on apple. will the tech giant cave? should they cave, and what could it mean for the stock? a special report. two dow stocks could be signalling a big selloff on the horizon. we'll tell you the names and why traders are so they are vows, and the man, the myth and the legend. richard branson, that's sir rich