that and much more tonight on fast tonight at 5:00. thanks for watching "power lunch." >> "closing bell" is up next. ♪ one shining moment ♪ it's all on the line ♪ one shining moment basketball fans know that march madness doesn't start until next week. however the market march madness kicks in tomorrow, with the european meeting, and the bank of japan, our own fed decision is coming up, plus the florida and ohio primaries are next week, and the possible oil output meeting of the opec and non-opec producers, coming up around march 20th. >> and that is what we call march madness. wish we could do brackets on banks. >> i'm sara eisen. >> thank you for staying up late today. >> never woke up at 3:00 a.m.? i would only do it for you. >> many years ago i did.

welcome. >> happy to be here. >> we'll be talking about those key meetings coming up this month, as we recognize the seventh anniversary of the bull market for stocks, march 9th, 2009. >> plus square and box getting ready to report earnings after the bell. this is the first report for square since going public. we'll get you ready for the numbers. and a treat for you a live interview with jack dorsey coming up. >> then it's the new amazon. maybe you have heard about this. we'll tell you why the e-commerce giant is leasing its own planes and starting its own live television program and what it all means for jeff bezos and investors, and prime members, and all those great things. >> it's hard to keep track of everything, but we've got it covered. >> they are everywhere. let's start with the bull run, which we call the haines bottom around here. here is the moment seven years ago when the late great mark haines called it.

>> i'm going to step out on a limb here. >> this is -- hold on, everyone. >> i think we're at a bottom. i really do. >> it was a great moment, and erin didn't believe him. it was -- nobody else could believe that could be a call. >> what a call it's been. >> dominic chu has more on how stocks have performed. >> i remember those days, sara, bill. i was still on wall street at the time. it was very tumultuous. for somebody to say that was huge. let's talk about how far the markets have vip since march 9th, 2009. that was the closing low. since then, this is real-time data adjusting for the moves. they're up by close to 160%. the s&p 500, remember a closing low of 767. that was the level we have just about tripled. 194% to the up side. the nasdaq composite leading the major indices up by 268-some

percent, so a huge move. the nasdaq the biggest winner. among some of the s&p 500, current members that were still around back then. you look at some of the leaders. you mentioned amazon. that stock is up 816% since that haines bottom here. star ducks shares up nearly 1300%, and then underarmour up nearly 2500% since then. ago for the laggards, perhaps no surprise, there are some themes developing here. telecommunication stocks like at&t, a giant there, it is up 75%, but it's nowhere near up as the rest of the market. some of these lesser economically sensitive stocks, the utility type plays moving to at least the laggard side. financials, morgan stanley is up 49%, still trailing the market, meanwhile, energy stocks still down from the highs. just to put it all in perspectives, other parts of the market and how they fathered russell 2000 small map up over

200%, mid stocks leading the gains. the transportation stocks, which we watch so closely now, 251%, so, again, sara, bill, as we talk about just some of the context we have seen, yes, the entire market has gone up, but not every stock along with it. we know energy has been the worst performing sector in the s&p 500 since those march 2009 lows, guys. >> but even it managed a gain of almost 40%, which is interesting, dom. if you look at some of the correlations across different asset classes, this was really a stock market story. the price of oil is down a little more than 20% since then, right? and treasuries haven't moved as much. >> yeah, back then ten-year yields were close to around maybe 2.8%, 2.75, now about 1.8, 1.9. we have seen some moves. let's not even talk about the idea you just brought up. we have seen an unprecedented amount of central bank

intervention not just from the fed, but the bank of japan, england, any bank that is out there has contributed to a global surge. this is an unprecedented time for the markets here. again, overall it's been an eventful testified year, so at let wee starting the eighth year of a bull market with a gain. >> it looks like. >> so far. 27 points higher. >> thanks, dom. >> you got it. wile we're in the midst of the beinginning of an eighth. there are many cal lists coming up. along with the ecb -- let's talk about all of it with luciano from wisdom tree investments at post 9. so is steve grasso from stuart frankel, and our own rick santelli checking from from chicago. steve grasso, one thing that market i think the hallmark of this bull market is a tremendous skepticism. it was the most unloved bull

market we had seen i think in our time. i think that's still the case right now, don't you? >> i think that's correct. you get people that don't want to be on board with any type of market run. i'm long stocks, but i'm very skeptical. it's a product of being burned so badly, bill, from when we were all on this floor when those days happened, and we didn't know who was going to go out of business, who was going to be next, but we take or lead now from oil. that was the global growth or the sign of it. if you don't have any global growth, i think oil right now is caught up as a trading vehicle. you have many funds that are on the brink of going out of business that are covering shorts. that's the catalyst for oil right now. shouldn't be misconstrued as growth at this point. >> look at that. nearly 5% gain for oil again today, luciano, highest settlement since december 4th. i guess the key to the equity market is have commodities really bottomed? or is this just a correction in

the commodity collapse? what's say you? >> i say if you look at the commodity exporting countries, look at their equity markets, eastern their occurrence sis, they have shown relative strength year to date. so i'm actually encouraged that the commodities -- equities are doing -- are doing so well. oil, i agree, is a speculative bet right now. we'll see what happens with the production and whether or not you actually get restrained there. but i think, you know, some risk and some stress has been relieved within the system, particularly given the rally and the affect that many e.m. kurn sis are actually up year to date. >> tomorrow is the ecb meetings, long anticipated. are you betting that mario draghi finally fires that bazooka he's been waving around. >> i'm not sure about this whole bazooka thing, but i think one

thing is for sure. they have to figure out a way to widen the net, and to buy more, you have to buy them at yields that aren't more negative that than, of course, the negative deposit rate. considering the talk we have seen or heard, he's probably going to go negative. i don't think it will accomplish much. i was there the haines bottom day, i remember that like it was yesterday. i thought dom did a great -- but everybody is talking about, you know that we have tripled. while all of that went on, we're still basically at crisis overnight rates. and when steve grasso and many others, including bob pisani who may have coined it said the most unloved rally ever, is because the fed didn't have confidence to raise rates to make it more love. i think they'll be pays the price for that for a long time. richard fisher was on today. he's been very frank and said we

pulled a lot forward. how much do we have to go further to main at the levels in the pool. these are very important things we have to think about. >> and luciano, center banks are still very much in play. we have an important two-day fed meeting next week, i think the question now is, do the markets have the same faith in those central banks that they have most recession, which drove so much of the gains in the stocks over the last few years? >> well, i don't think the issue is whether or not the central banks, what they're doing is right or not. the question is, is it necessary? they believe it's necessary, because they still have a debt problem and growth problem. the government frankly is not getting is done and neither are the private corporations. so they may continue to do more of what they started. i would not be surprised to see if the ecb go further negative, increase the qe, extend the duration of the qe, and i think

they're doing it because they have to do it. >> you know, steve, you have to navigate this market as we go through the various important meetings. what are you expecting to happen? you say you're still long, but skeptical. >> the key is we had the china national congress. that was basically an event where people wanted to put risk on. you're always nervous about the wild card being china. now you have the ecb. i do think this rally, as everyone else has felt is a big long in the tooth. we don't know what's going to happen. you don't know what the central bank are going to do. us and the chinese government are tightening right now. no matter how loose it looks, if china is selling treasuries and supporting the yuan, that's tightening the monetary supply. the markets are addicted to easing. so whether you like it or not, it's a fact, and markets sell off when we're not easing.

>> we've got to give the last word to you, because you set up the -- and some of the expectations around it. i wonder, though, what you are hearing and what you think about the reaction, given what we saw when bank of japan went to negative and the market rejected it just a few days later. >> traders are a bit nervous, i have to tell you, sara. i have a chart ready. this is a 30-year japanese government bond, and bill, forgive me here, you're going to laugh, but it went from 47 basis points to 71 basis points in one session, a 53% increase in that rate in one session. now, i don't like to use percentages -- >> right, right. >> as they numbers get small, but in this case it makes you nerve out bund yields had a 50% move in two sessions, so no matter what happens, to answer your question, the market doesn't have the girth or liquidity or anything to be prepared for the kind of volatility that has to ensue when these central banks run out

of rope, and they will or have. >> tomorrow will be very interesting. i know the worldwide exchange will have much more on that tomorrow. >> yes. >> when you wake up tomorrow. >> and when i go to bed tonight. thanks, guys. appreciate it. your thoughts on the day's market action. 50 minutes are left in the trading session. the dow is up a whopping two points. >> though it did go negative. we'll see what happens in the last hour. coming up square and twitter ceo jack dorsey will be -- following those results from square. it's the first earnings report since going public, and his second earnings call of the quarter. >> very exciting. up next, though, amazon advancing its push into cargo delivery and to online fashion. that's the one that's got my attention. we'll discuss the retail giant's latest innovation and whether they can boost profits or not. hey, you're watching cnbc, first in big worldwide.

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chipotle. it's falling on news of this burrito chain temporarily shutting a massachusetts restaurant after four employees fell ill. it has undergone a full cleaning, already been cleared to reopen on friday. the state's department of health says no customers are known to be sick. chipotle, of course trying to rebuild sales and the stock price since the e. coli outbrack. this incident involves the nor ovirus this time. >> it just goes from bad to worse, as cramer set earlier. he sticks with the stock, just as the tide was starting to turn, there was a survey released just a week ago, saying that sentiment bottoms in january for chipotle, they looked at about 800 customers, they were looking at how the customers reacted to some of these promotions.

and said things have turned. they've been looking since november. we'll see. >> certainly it hurts their credibility when they try to reassure customers it's safe to come back again, and something like this happens again. we will wait and see. >> another headache. >> amazon making a big usual push into new territory. morgan brennan covering the transport story, and courtney reagan all over the fashion story. >> we'll start with morgan. >> after months of speculation, it's finally official. amazon is leasing 20 planes from air transport services group. this is the latest step in addition to trucks, curlius and drones in the quest to develop an in-house delivery network and drive down costs. the agreement will involve a minimum of 20 boeing freighters leased, operating the fleet domestically. atsg's management say the

e-commerce giants will have 15 planes by year's end and five are already in use. amazon can take an -- it will have warrants to buy nearly 20% of equity, also get a board seat. if you look at shares of air transport, those are soaring on all of this news, up 16%, but amazon is also a big customer of u.p.s. and fedex. so u.p.s. says it chooses not to speak about the business plans, but it will continue to work with amazon. feddics saying it wasn't a surprise, they have been aware for some time about their need for supplemental services. back over to you. >> morgan, stay right through. over to courtney right now for amazon's push into online fashion and television style shopping. courtney, what in the world? >> sound familiar, bill? >> amazon has forever altered the retail industry, with the latest moves, amazon is taking

some plays from veteran retailers' playbooks. private clothing brands and a shopping so allay qvc and hsn. amazon's 30-minute "style code live" is free and streaming daily at 9:00 p.m., from the host, and rachel smith and mtv host rodriguez, live chat with viewers and of course direct viewers to purchase items right on amazon.com. the new show follows the roll-out of the seven any private label apparel lines. private labels are cornerstone for many traditional retailers capturing higher margins. thing costco and the kirkland bread or st. john's bay and j.c. penney. a survey shows 25% more consumers bought apparel on amazon in february than in 2015,

which means amazon is likely taking share away from companies that have built their entire about is on selling clothing. keybank ed aruma estimates that it could add at least 25 cents to earnings, even higher if it can execute strong private-label sales at those higher margins. >> i mean, what's interesting about both of these stories is they really tell the big picture. you always have to read into the small steps to get jeff bezos' plan. are they going to charge marketers to appear on the show? or is it all about advertising amazon.com products and pushing people into prime? >> i don't think it's jeff bezos' number one concern to turn a profit. if he wanted to do that, we assume he could do it, but right now it's all about -- so they just want you to buy goods from them.

if they need to do a live tv show to explain the latest trends and entice you to buy those goods, they will. they're going to talk about trends, suggest products. they appear at the bottom of the page. you can directly purchase them. amazon actually suggests in its promo, that it's best to watch the show on the desk top, tablet or phone, presumably so that it's easy to buy. you stream it through your television, it's a bit harter. >> i personally know some tv executives from many, many years ago, who dreamt this kind of television commerce, and they are drooling, i'm sure at the opportunities that amazon is presenting here. how far along -- how long better you start hearing about drones? you start and just to hear the government say maybe they're going to, under certain limited circumstances, you'll see drones being put into the business here to help them deliver packages. >> yeah, well, i certainly think

drones are kind of like the sexy item that everybody has been talking about. i think you can till see it a while before that's deployed in a full-scale way. it makes more sense in terms of rural deliveries where the last mile is particularly expensive to get it out on time. but i mean, in the meantime this air cargo network they're building out. you've got a shipping contain irlicense that amazon has gotten to move freight from china. you have a courier fleet, their own trucking fleet, and, of course, their whole logistic network in general. in general amazon is becoming more and more of the transport network. and because investors and analysts are worried one day they could have a network big enough to actually become competitors and not do their own deliveries. >> great stuff. morgan, corti, thank you both. see you later. we talked earlier about the tremendous skepticism involving

the overall market. people have been skeptical of amazon from day one. >> and that's been the wrong trade. >> yes. 40 minutes before the closing bell, just barely hanging on to gains here. dow injure flipped into negative territory. s&p 500, though, hanging on to about a quarter of 1% gain right now. nat dab doing the best, up 3.3%. it's not your imagination, yes sara is up and anchoring when the sun is up. unusual. great to have you here. >> can't get enough of it. jack dorsey speaks with us after square posts its first earnings report since going public. and ceo weighing on the wile right. and where he sees them heading by the end of the year. his stock has been an outperformer. "closing bell" will be right back. you're an at&t small business expert? sure am.

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all right. 35 insomes left in the trading session. groupon and yelp falling after downgrades by ubs. the analysts there writing that groupon has a long road ahead and strengthening its position in the local advertising market. he adds that yelp lags its peers in user growth innovation and technology investments. look at groupon, down over 10%

today. express climbing on an earnings beat and better than expected full-year guidance. revenue came in below street estimates, but the apparel retailer did note a significant improvement in profit margins and express is up 3.5% today, sara. >> chesapeake utilities, one of the best performing utility stocks this year, the former and current ceos will be wringing the closing bell this afternoon at the new york stock exchange. joining us is michael mcmasters, ceo of chess apiano ec. >> chairman emeritus celebrating 50 years with the company. >> that. >> you're a young one, only been there 30 years. >> wee very honored to be here with ralph ringing the bell. >>tilities are sexy -- >> but the tremendous skepticism

about markets or whatever. every time you turn around, utilities, that's fine, but we want to go where the growth is. >> and chess 'peek utilities in particular, we have been working extremely hard implementing a growth strategy. this goes back even to the early '80s when we were ranked by "forbes" as an up-and-coming company. it's about making smart investments and executing and getting higher returns on these significant level of capital expenditures we've been making. >> yet so many natural gas and other companies tied to energy have done so poorly. how leveraged are you? >> actually we are a distributor and we also have pipelines that deliver natural gas to distributors, so we're very close to the end-use customers who are benefiting greatly from

the lowest costs. even going back to 2008 when crisis fell, it's been a benefit. >> so you're agnostic, you don't care if the price goes up and down? >> that's correct. actually we prefer lower. >> for your customers' benefits? >> and we benefit as well. do you have a sense of where it's going to bottom? the reality is we're awash in natural gas. >> that's correct. >> we all know the story. >> that's correct. >> much, much more than we can use and the pride has reflected that for several years. >> that's correct. >> are we need a bottomed? destined to go heard? >> we don't look too hard to figure out if we're near a bottom. we know we can grow and be profitable. if prices are almost double given historic norm, we know we could be success of the. if it goes down, it makes it

easier. even if they go from $2 to $4, based on historic norms, that's a very low number. >> we'll keep an eye on the stock. >> i know they're anxious to get you upstairs. thank you, the ceo. chesapeake joining us today. time for a cnbc news update with sue herera. here's what's happening at this hour. two baltimore school officers face criminal charges after the beating of a student is caught on camera. it's pretty graphic video. it shows one officer violently smacking a 16-yard student inside a school last week, while the other officer encourages the assault. it's anthony spence whose charges include felony child abuse. members of a french union demanding president francois hollande to abandon the plans for 45-hour workweeks to create new jobs.

it's a day of protest. a long-lost painting of rembrandt was found. it's call "the smell" part of five paintings that represent the senses. he painted it when he was 18 or 19. a pack of ponies running free alongside the florida turnpike after escape from their home. some florida rangers tried to corral them, but the horses hightailed it out time and time again. eventually they were caught and brought home. >> go, go, run free, you ponies. >> let's all break into -- ♪ born free [ laughter ] >> okay. that's it. see you in an hour. we're into that critical last half hour of the trading session. >> the most important, right? >> you remember. >> that's why i love doing "closing bell" with you, bill. >> i think we're waiting to see what the ecb does tomorrow. we have a leading trader telling us what he's watching.

and our own larry kudlow weighs in on last night's primaries, and the impact a ted cruz white house could have on business. the we'll be right back. equals great rates. it's a fact. kind of like grandkids equals free tech support. oh, look at you, so great to see you! none of this works. come on in.

welcome back to "closing bell." less than half an hour before the closing bell. alan from silver bear capital, good to see you. >> nice to see you, sara. >> it seems like a wait-and-see. >> you're exactly right. we're normally over a billion shares, over $600 million right now. so the big ecb announcement they think is coming. >> how is the market positioned ahead of that? >> we've been all over the place. oil has taken us way off the point. we're still positive on the day. we do have more to sell on the bell, but i think, you know -- we're still -- >> is it important that we have held the recent gains, the three-week gains, 10% off the mid-february lows? >> you definitely -- you said to hold above these numbers right here. you don't want to see them capitula

capitulate. maybe more to the down side. >> all right. we'll keep an eye on it. >> bill? >> sara, you know donald trump clinging to the lead after winning last night's michigan and mississippi primaries, but don't count out ted cruz just yet h el a es in a seemingly strong second-place position. earlier today he picked up the endorse. of form are rival and former ceo carly fiorina, andial welsch, was on "squawk box" this morning. >> i think if you get away from all the rhetoric and just look at who he is, he's talking about jobs, he's talking about freedom, and he's talking about security. in jobs, he has a tax plan that i love, it takes care of exports, takes care of the perch rates, the corporate rates, repatriate money back here.

it's a job creator. his tax plains are a job creator. it's not for the i.r.s., but is for hard-working americans, so on jobs, i don't think there's anything close to him. >> more on that and how cruz white house could affect business. we're joined by the senior contributor and long my fashion mentor, larry kudlow. >> by the way, you're not a big fan of his economic policies? >> step back a second. he's a free mark man. i great with what a lot of jack welch said. i give him credit running, while he opposed the mandate. now, regarding taxes, on paper it looks pretty good. a single rate for individuals, 16.5 business flat tax,

eliminate the corporate tax, eliminate the payroll tax. in theory that's all good, but he finances it with a value-added tax. it's really a stealth hidden national sales tax. it really is, starting at 16.4%. burden would be on consumer, workers and businesses. i fred, because europe taught us years ago if you have an income tax and v.a.t., they're both going to go up. >> only one direction they can go. >> so i would repeal the 16th amendment and then look at a national sales tax, but i was there when they signed the 16th amendment. i want this had a intoed idea and it was, but i'm just saying urn a national sales tax, a v.a.t., get rid of the income tax. that's my beef. otherwise very strong, a very pro-growth guy. >> he's talked about the gold statistic, do you think it's for real? >> i think he thinks it's for

real, or some kind of commodity basket. i'm quite sympathetic to that, as you may know. >> c'mon? is there enough gold to put us back on the gold standard? >> the answer to that is probably no, but i would use a basket of commodities. that was the wayne angel, manly johnson, heller approach. i still favor that approach. >> taking away the power of central banks, though? >> that's so yummy. that whole idea is just so fabulous. >> it's scary to me. >> let it deregulate. interest rates get out of the way. we'll all be happier, healthier and richer. >> you brought back some of the michigan primaries. there's some interesting tidbits. this election was really about trade and the public's opposition to trade, and i'll tell you what. michigan, yes, you're going to see the same thing in illinois, you're going to see it in hawaii, in pennsylvania, you're

going to see it in new york, you'll see it in new jersey. the numbers are stark. this is the republican side, right? 33% believe trade creates more jobs, 33. 54% believe trade takes away jobs, okay? >> that's pretty serious. >> that's been their experience in that part of the country. >> i know, and trump wins that in the republican side, he wins it big. sanders putting it to work on the democratic side, and i don't think that story is over yet. mrs. clinton was for free trade, by the way, but that's until she decided she was against it. she doesn't seem to have the credibility on that. she's flip nopd on her position. i myself i think free trade is pro-growth. i'm at logger heads with this -- >> i still think china, bad actor, violates trade treaties, yes, all the time, but let's sanction them, or let's have some tougher negotiations to

enforce the rules, which they break routinely, putting a large tariff on it? hurts consumers, hurts american business. i think it's a bad idea, but whatever i think is kind of irrelevant. the public thinks trade is bad, and the candidates are running against china. everybody is opposed to the pa tisk trade agreement. >> finally for a prediction, you've been dead on about this becoming a two-man race, and it really is right now. how do you think it is once we're in convention? >> you know, it's a tough one, because cruz is tough. he's a smart guy and he's tough, and run a pretty good campaign. trump is ahead, i believe trump is going to carry florida, handily, october? i really think, with all respect senator rubio would be better off pulling out. >> what about ohio? >> huge question, the latest polls, quinnipiac poll, cnn poll give trump about a six-point lead over john kasich. that doesn't mean a thing,

really. a question about mr. cruz i'll ask is -- illinois, ohio, wisconsin, new jersey, new york, pennsylvania, they strike me more as trump states than cruz states. okay? why do i say that? they're more industrial, more heavy manufacturing, a lower evangelical turnout, though trump wins the evangelical vote, some day i'll understand that, and -- so i think trump, he's got the whip hand, i east just say that. >> it's his to lose? >> i think so. this is not a putdown of ted cruz. i think a lot of him, but donald trump's it's his to lose. trump/kasich? what do you think of that? >> that's for another segment? >> i love kasich. fabulous. >> trump has said he wants a politician, an experienced one in that job. >> another segment, you're right. >> you do that. thanks, larry.

>> appreciate it. >> larry kudlow, senior contributor here at cnbc. 18 minutes left in the trading session here, holding steady. i think we're in wait-and-see mode under tomorrow morning. conveyor about to rho are the its first earnings. we'll tell you what to expect when we come back. >> whether those earnings are released. we've got an exclusive interview with square's ceo and twitter's ceo. cnbc, first in business worldwide. owen! hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers

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certainly most of the attention jack dorsey gets these days is for his return to twitter, but his other company square is in the spotlight today with earnings, kayla tausche joins us from san francisco to tell us what to expect. kayla? >> well, bill, it is jax dorsey and square's first company reporting earnings as a public company, the expectations are for a loss of 13 cents a share of revenue number of $343 million, an increase of 51% from the same quarter a year ago, but an increase of just 3% from the most recent quarter. of course, in that most recent

quarter, the company had a lot going on. it went public on november 19th, oftentimes that's an eye vent that carries a big one-time charge, and it also saw the stock go through a wild ride. not unlike every single tech ipo. the company broke through the ipo price. it's risen how% from there at the same time. weights analysts have been initiating coverage. most of those reports have acknowledged that the long-term opportunity for square in the payments industry is huge, but the near-terr hurdle is really profitability. bar clay says it expects it to turn a profit in 2016, and the path to profitable is something investors wants clarity on. we asked jack dorsey about that on ipo day in november, and here's what he said. >> as any entrepreneur would tell you, any one of our sellers, you have to invest and grow your business.

we don't see this as a loss, but an investment in business. it costs money. we have an understanding of our business. we have a very clear sense of the controls of the business. we showed a breakeven in q2 this years. that proves we have a business that can see that, but we want to investment in growth. >> but that level of investment is going to be closely watch. how much are they spending on sales and marketing? how much on research and development? to continue developing products, to compete in an ever-competitive space. of course, some other numbers we'll be watching, gpv, gross payments volume, that's expected to come in, it was a holiday quarter after all, and the biggest percentage of square's revenue come from a percentage that they charmerchants. so we'll have those numbers for you and we'll have ceo jack dorsey up on "closing bell" in a minute. >> we'll see you in the next

hour. >> i always learn something. gpv. how is your gpv doing? >> and while square is above the ipo price, twitter is not, still down more than 60%. that's the reclamation product. with 12 minutes to go, the dow is up 17. art cashin just signaled it's $100 million to sell going into the close. so a slight imbalance. >> on you next guest believes that consumer staples are looking fraherly unattractive. he'll explain why, after this break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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what are you expecting to happen? >> i believe the ecb is forced to do more. they will probably cut the deposit rate. i don't think it would be a particularly good idea. they will expand the qe program, but to a surprise market on this time. >> into the break, i just mentioned you do not like consumer staples, yet a lot of

these stocks tend to go higher. coke is at a multiyear high, philip morris, stocks that aren't growing so fast are in demand and you don't like them? >> no, with consumers staples, they very, very expensive. in general we like cyclical sectors, because the global xh i is not in such bad shape, so we field you have to invest in the cyclicals. >> geographically you is like europe, i man, in part because of the easy mon possible here in the u.s., because it was easy to like the sfef -- it becoming a crowded trade, though? we like europe, because it's effect i have beenly lagging. there's a lot of catch-up potentials in europe, and i think what's very, very

important, we think the economy in europe is actually quite as strong as the u.s. the growth is 2%, same as the u.s. >> whether do you expect this rosy view to play out? because europe is underperformed and a lot of the defensive stocks have outperformed. >> i think what is critical, we need to see an improvement in china. it's in china, we see an improvement. better in the u.s., better in the europe, this is when the cyclical sector will -- >> look you cana, good to see you. you picked a good time to come to new york. the weather is like miami, as you said. >> exactly the same. >> 70 degrees in new york city. >> thanks for joining us today. >> in march. up next, my favorite segment. we're coming right back with bill's closing countydown. >> you want something, i can tell. a good night's sleep? and the interview only here on cnbc. jack dorsey goes one on one with

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there's some volatility, but it is a sideways day. crude oil, see what wti has done today, hovering around 38 are $38 a barrel now, up 4.7%, and in honor of sara eisen staying up late to be with us on "closing bell", we have the euro dollar futures, and as she said, you know, keep an eye on that tomorrow, especially after mario draghi makes whatever announcement he's going to make. you want -- pleased or not. >> and sara did mention coke was at a new high. look at this. tyson, general mills, that could be general mills there. but bill and i wu junior talking about the fact that 13 banks have put out projections about

what the ecb is going to do. cut the depot of the rates, this is the rarn of what they're talking about, at 10 to 15 you will billion euros per month. right now they're doing 60 billionitio you a month. now, qe is currently expected to expire march of 2017 my point is everybody is on the same side of the trade. everybody believes they're going to do exactly this. >> for one brief shine moment, everybody has either figured it out or is wrong. >> the risk is to the down side. if draghi doesn't do any of this, everyone's on the same side of the trade. the markets would move down f m form. >> and citing improving economy? no. everybody thinks they have mario draghi figure out. we will see. we'll know by this time

tomorrow. thank you, bob. up 32 points on the dow, as we go out waiting for the ecb report, but if you're waiting for jack dorsey to come, wait no longer. he's coming up with the earnings from square and our exclusive interview with him. kayla tausche in san francisco. stay tuned, though, for the second hour of "closing bell." welcome to "closing bell", i'm sara eisen in for keviny ehave been. bill griffeth will be joining us in a moment. officially kicking off the eighth year of the current bull market with a gain, a fractional gain for stocks, the dow finishes up about 33.7 points. s&p up nearly ten an the that is dab up 25, this is good for a gain of a little more than half a percent. investors getting ready for a pair of tech earnings. our josh lipton is waiting

for -- but first, joining today's panel we have senior markets contributor as always, man san tolli, along with contributor carol roth. also for more on today's action "fast money" trader tim seymour. >> we should have had a cake today for the seventh anniversary of the bull market. what are we thinking about? >> or bobby's birthday. >> seven years of good luck. >> what i'm favoriting is people saying maybe we're not going into the eighth year of the bull market, which i tend to be on that side of things. >> doesn't that prove the point this has been the most loved bull market? >> i think for much of it it has been, i think the market has difficult enough in the last seven, eight months that it justifies people being very cautious. the fact that global markets are in a bear market and having for a while. the end point of a bull market

is set retroactively. >> hold off on that cake, bill. >> but to bill ace point, the hallmark, carol has been that investors and traders have been able to climb this wall of worry. there have been concerned throughout over the market, whether it's valuation or global or european debt crisis, you have it, and the market has managed to climb higher. what do you think is different this time? >> i -- i think that finally you have sort of a perfect store you remember of events that are coming to bear, with no pun intended, with no sort of cover. i think that we understand that the fed is likely at some point for continue it the wit raise. but between what's going on with asia particularly with china and japan, the struggles with deflation, if you look at the

markets as a whole, just everything is coming together, and there isn't that one place to hide. then you throw in the oil story on top of that. that may be the net-net difference maker. >> what do you like about this market now, if anything? is. >> what i like about it is people who have been waiting, and they've been trying to call it a credit event, think will get destroyed. i think they've been destroyed in the last two months largely. it seems like the thing to do, which has been frankly, you know, a bearish call that hasn't happened, so bull, bear, i don't really care, but to say the last six to eight weeks have formed this dark cloud and i'm going to wait for a black swan to sail over this pond and wreak havoc has been a dangerous thing to do. ultimately credit markets are i think in a difficult place, we see countered as contracting, but it doesn't mean that things are blowing up right and left. it means actually the oil market adding relief is taking a lot

out of that bank and credit trade look at wti, energy the leading sector, but interestingly, the overall index did not rise as much as energy has. so i'm wondering how tight that correlation is now. >> it's pretty tight minute to minute, but just not magnitude. commodity futures markets will rip in a much more dramatic way. what's funny, though, is if you remember back -- and tim will remember this, which crude oil was making new lows, or at the verge of making new lows january and february, you have the oil market closed, and sometimes stocks will get a bit of relief. i honestly think the past two days have been a well-behaved rally, so i this think it's okay. >> addressing your skepticism,

carol, chesapeake utilities rang the closing bell for a day. for a time they were the best performing stock in this year's best performing sector, that would be the utilities. how defensive do you want to get for this market? >> i think that there is some good, healthy skepticism, which leads to good defensive play. i always think it's good to have a strong defense. '8 a bears. >> defense wins games. >> exactly. so i think that it is important to have protection. i personally think this may be one of the thunderstorms bounces. i imaginely with probably see some lows again. kayla, how do the square results look? >> we are seeing a beat on the top line, adjusted revenue coming in at $135 million, in the revenue $374 million, both

those numbers a beat as is for gross payments volume. 10.2 bill chron compared to estimates for $9.6 billion. eps is cloudy on this one, they are reporting a loss of 34 cents a share, but that actually includes a one-time charge and excluding that, it comes to a loss of 21 cents a share. that is a charge that is related to the company's ipo when they actually had to issue more shares than experted to the series e investors, the company says that is a one-time charge, but impacting the bottom line. one thing investors will be very acutely focused is the outlook for the company. they say they have $471 in cash and equivalents, guidance for hull-year 2016 adjusted revenue, $600 million to $620 million, and adjusted ebitda of 6 million to 12 million.

the company is forecasting by the end of this year, they will be profitable with 332 million average shares outstanding, so certainly that outlook is going to garner some attention from investors, as i know a lot of people on the street will be trying to make sense of the difference between the 34 cent loss and the 21 cent loss, given this one-time charge, something not that the street was expecting, but the top line on software and data and hardware coming in as a beat. >> stock up 2.25% in after-hour trade. kayla, thanks. we'll be hearing from you and gentlemanic dorsey in short order. tim seymour, do you like square here? >>ist a very competitive space. i agree with kayla, let's wait and see what the guidance is. this is at a time when people -- if we're talking about momentum, i don't think this is a time

that anybody is paying for growth, overpaying at least. i think that is the case where the jury is still out. i think you still have the issue of the c suite. there's complicated escrowsover analysis of who really is in charge. i think we're in a case where the company still has a couple quarters to prove itself. it's nice to have a decent balance sheet to do that, but i don't think you have to rush in after the numbers. >> that was always the concern, a low barrier to entry, and a lot of competition, but bill, gpv, gross payment volume, which i now you were anxious to hear about. 10.2 bill yor v. consensus stilt of 9 1/2. >> obviously they're riding a good train. i think it's in general a bonanza. the customers themselves don't get excited about this stuff, so i think it's different than many silicon valley startups when you have a killer app, something that people clamor for, but this is stock closed last year at $13

and change, there's some relief at the top-line beat. i think beyond that, it's -- >> wouldn't you know we just had the earnings from square, now we have earnings from box. josh? >> box is reporting a loss of 26 cents, revenue jumped 36% to $85 million. the street, bill, was looking for a loss of 29 cents on revenue of $82 million. it looks like billings surged. box also reporting positive catch flow of $5 million in q4. analysts were at 87, and box guiding for full year revenue of 394 million. that stock had already surged about 40% since the market bottom on february 11th. on the conference call you're going to expect coo to -- the

general i.t. landscape, a and in fact aaron levy beyond with our own jim crepe, on "mad money" tonight. this conference call tonight is going to start, though, at 5:00 p.m. eastern, and we'll be on it. guys, back to you. >> thank you very much, josh. >> the question is how sticky are these technologies for the company they're serves? whether it's box at the enterprise level? how much pain will it be if he get entrenched to switch? both are spending very heavily to get the new customers. so i think the key question is -- is that going to pay off? if you look at something like box, a million and a half in terms of market cap, that doesn't seem that outrageous if

you have a sticky app. if there is that stickyness. i feel like that is the potentially billion and a half dollar question. >> that's my favorite question. what would you call it if box merged with square? >> one is two dimensional and the other is three. >> cube or something. >> there would be engineer jills there? >> tim, thumbs up or thumbs down on box? >> i think a thumbs ultimate. you think box has a competitive mode. you can see the recent deal slow. the bookings, the ibm deal i think is something that will lead to larger deal sizes. >> a stock ridiculously beaten up, i don't need to chase a stock with this move up about 55% off the lows in early january, so be careful about what you're buying here. is this a company that will be

here tomorrow? i think it is, but i'm not sure what you're going to pay for it. the momentum around the top line seems to be better and better. >> with box also, it's all about the partnerships they sign. in these management comments on this release, they note here they had customer wins like aig, genentech, home depot, so some big names. >> without a doubt, you want to hear it. i would point out, this is one of those extremely heavily shorted names, so that's been a theme the last few weeks. this stock was in the low to mid 20s. now long after the ipo. >> much to aaron levy's dismay. >> exactly. >> it's another reason -- >> and interestingly enough some of their competitors, including a company like drop box, who is private, had seen increase in customers, so that bodes well for the space overall. it just comes down to who will

end up be being the last couple names standing. >> tim, thank you. see you later, next hour. you'll see tim and the rest of the crew on "fast money" at 5:00 p.m. all weeks they are talking to the godfathers of -- >> look at that shot. melissa is the godfather. pell hey, look for that, coming up next hour on "fast money." all right. the banks have been beaten up this year, but our next guest says many banks look cheap at these levels. he will be here to name some names, straight ahead. also, as you know, square's jack dorsey breaks down the company's earnings. don't miss our exclusive interview coming up later on "closing bell." you're watching cnbc, first in business worldwide. [vet] two yearly physicals down.

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just look at how morgan stanley, b of a, citigroup, goldman sachs have all performed down, and now is the time to bet on the bank stocks. from menden capital joins us.

do you pick the ones that have beaten up the most here? if you end up buying the big guys, you go with what the market is doing, you're going with high beta. >> so you get volatility? >> a lot of volatility in the bigger names. i tend to focus on the smaller names, opportunities there, less regulation. 5% of the banking industry will sell last year, because 5% sold last year and the year before. so we see a lot more opportunity from m & a. >> but something has to trigger that. an certainly not something you would expect to see -- >> there's a couple of headwinds. smaller banks are facing re la torrie issues, that hasn't chaked. yield curve is not so favorable for them. but again, sort of those things that were small measures to bail them out aren't going to bail them out. some of the buyers will benefit from buys companies.

>> i guess the question is, in terms of investors looking for those opportunities, how small do you have to go? and what joe ographies? >> i really like southeast, very good economic growth in there. you're not getting energy exposure, at least the negative headlines. that's helpful. secondly, a billion dollars in assets, you go down to that, you'll find plenty of opportunities. you can buy a basket of those or a fund that specializes in doing that stuff. >> when you look at valuations, and a lot of these companies that are trading at a pretty significant discount to their book value, the value of their assets, the market has been to be telling you either i don't believe the assets on the balance sheet or there are bigger liability, but a discount of 30% or 40 march, where is that discount coming from? >> well, i think the discounts come from a lot of things. i think they've been sold by sovereign wealth funds. they did it in january, there

were no buybacks, so, you know, everybody goes the banks are telling us something. us then a lot of hedge-fund, risk managers tapped in the shoulders, you have to get down, two, so there's been selling just to get down, so some of the most shorted stocks in the in-related banks have actually outperformed the rest of the index, their whole book has been closed. they have to cover. >> so let's pin you down on what you do like. drumroll, yad kin? >> of course i like it. you have charlotte, raleigh, the research triangle, north carolina, largest pure play independent bank in that region, so good economics, but i also think the shareholder base is one that would like to get paid. there's some private equity in there. it's sort of a crown jewel. i can see them exiting this company. >> even though it's down 9% this year? >> i think it's irrelevant that it's down this year, that being

down this year is a function of forced selling, not anybody going i don't see up side in this. >> do you think the larger banks will be looking aggressively at this space? because obviously they're having difficulty with their organic business. in order to get that growth to please the street m & a will be top of the line for the year? >> i think we heard roger cohen talk about he sees a lot of bigger deals this year, and i agree. the top five can't do a thing, but you get beround that, the pncs, bb & ts, suntrusts, regions will all by active. >> negative ranks are not good over there. >> or anywhere. >> aren't we correlated to what they do there to some extent? >> i think the negative rates are helping drive where our bond market is today, no doubt about it. that's not helpful. i think -- i don't see we're going into negative rates.

clearly when i talk to banks, i talk about floors in their loans, just in case, i don't see recession, i don't see that happening here, but clearly it's holding down our fixed-income markets. >> what about non-bank financials. the you would think there's stuff that looks cheap out there. the question is, is that a broken business model? >> i don't think it's a broken business model, but i think there's fear out there if high-use eld gets crushed out there. a few weeks ago, and i think there's also some fear about replacement, some are cannibalizing themselves. i don't like to own them, because they give my portfolio high beta. i try low a low volatility manager. >> always good to see you. >> a pleasure. from menden capital here joining us on post 9. square is up 0.75%, coming off the highs set after they reported better than expected earnings and revenues.

coming up we'll hear exclusively from jack dorsey, on the results and how he's dealing with increasing examine el 'tis. look out, apple. wee give you an up-close look about a new smartphone that could finally be an iphone killer. >> the new blackberry? >> the new samsung. back in a moment.

el. we have some breaking news

on volkswagen. phil lebeau joins us on the phone. what's going on? >> michael horn, the kreismt off of volkswagen of the united states, volkswagen north america is leave by mutual consent, by both mr. horn as well as volkswagen. they have decided he will be pursuing other opportunities, so michael horn is out as ceo of volkswagen, new york american, he'll be replaced by hinrich woebcken, who will take over the job. once volkswagen has reached a settlement with the epa and the california air resources board. that's the decision in the future of how they remedy or fix more than 600,000 vehicles that are not in compliance with emissions. again, michael horn, the ceo of volkswagen america leaving the company, replaced on an interim

basis. >> who want that job? >> probably no, those better when all the news is out there. >> is it all out? >> at least it's not going to stick to you as the new person. this guy was a 2-year veteran of the company, so clearly taking the fall for all of this. phil, what is next? terms of what we should be watching? >> march 24th, that's a deadline that the judge has set for volkswagen to announce how it will fix the 600,000 vehicles. they've been in negotiation with the epa, with the california air resources board. they have not come up with a solution yet. they're going to have to come up with one by march 24th, otherwise we start to see this move down a path of litigation. >> what's the -- what's the sticking point? how hard is it to come up with a settlement on that? a company i would think would be very anxious to get this done and move on. >> we've seen others who have

done so recently. it's not unprecedented. >> reporter: the issue is how far does volkswagen have to go to bring these cars into compliance. and at what point if you're volkswagen do you say, okay, we're going to buy back these vehicles? 600,000 vehicles to buy back, it's not going to sink the company, but that is a huge financial hit as well as a logistical nightmare. they would like to resolve this with a software solution. the question is, can they come up with a software solution to bring the cars into compliance? they believe they can. you know, the california air resources board, they have them up against the wall. >> right. they have a huge pr problem. phil, thanks very much. you know, settle that and they can move on at some point. let's get to square. they reported that earnings just a few moments ago. the stock is up 1.4% right now. >> cnbc's kayla tausche is at

square's headquarters, where she's joined in a cnbc exclusive by cofounder and ceo jack dorsey. kayla, take it away. >> sara, thank you so much. thanks to jack for having us here at square. >> thanks for coming. >> the quarter saw a big blowout number on revenue, also perhaps a surprise that you expect to be profitable within the year. what's working here? >> a lot. first our phone cuss on online payments and making sure we're distributing our haired ware in an easy way. we put a big focus on the emv shift to chip cards. we announced with apple over the summer or new contact list and chip card reader. we have shipped 350,000 pre-orders and they're available on every apple store as well. we think this is a big change in the industry, and our main focus is around making sure that our

sellers can accept any form of maim, and we're seeing that shift very, very quickly, and we're taking full advantage of it by putting our sellers first. >> how long can you ride the tailwind of that transition? because it was set in motion about six months ago, with the deadline in october, and then at the same time, while you have hardware revenues more than doubling, you have software and data revenue that is up by a function of nearly five. so is this really a story about hardware? is it a story about software? >> everything we do starts with the hardware. and we start with that logo on the counter or some someone's hands. they can accept a chip card, a folks, and that opens the doors to our entire ecosystem. we start with the most critical thing, which is how does a seller make a sale, and how do we give them technology that we believe will exist over a decade. this is not a one-time shift

we're riding the tailwinds of. this is how the industry will play off-line going forward. while we love more authenticated payments, we love applepay, android pay, and into it's sellers can see more customers, but the customers can have a much faster and better experience as well. anytime you see a square logo, you know you can pay with your phone, your watch, the fasters way and get on with your day. >> what about square capital? how many merchants are saying they want a cash advance? >> this one has been fantastic aren't by focusing on payments we open the aperture for more financial services. square capital works in a pretty simple way. we send an e-mail to a customer. they can tap on a button, and that money goes into their cash

instantly. they can use that capital to build their business. the way they pay it back is every time the customers pay, we take a small transaction fee, and it's paid back before they know it. our typical customer asks for another one, and this is a product that we really love. it builds off the power of a strong payments network, but also offers a real need to a smaller seller and a microseller that they just can't get from a typical bank. >> what happens when the economy gets soft, you have loans on the balance sheet that you're trying to keep clean? how do you maintain credit quality as the economic becoming more volume tiff? >> this is around good technology. we have a deep understanding of our sellers, where they're going, their businesses, what risks they face, what they need specifically? so we can be very direct about giving them the capital they need and what the risk is, and we make a calculated decision every case.

so i feel good about that, because it's something that we've been doing for seven years. >> there are a lot of companies, though, that are trying to do that. and excuse me for interrupting, but i'm just curious why a jpmorgan chase, which has a ton of data at its fingertips as well, why a visa, companies who are also partners and investors that have a lot of resources to spend on their own couldn't create the same thing? >> well, you know, our position has always been the banks and the financial system today works pretty well, but it's not accessible to everyone. it's not inclusive to everyone, and what we can do is really open the aperture for more people to get into it. typically banks aren't lending at the levels we are lending at. they're not advancing capital to people in a way that they can actually get a profit from. so we can, and it's because of that understanding that we have of our el sellers and brings

more people onto the rails, in the right way, and brings them on in a fairway. >> do you feel pressure from companies like chase, which is taking over your previous partnership with starbucks. it's going to launch an instant settling later this year? it's one of your largest shareholders, but i'm curious, now this space is getting so competitive, how that relationship changes? >> the relationship doesn't change. chase is a huge partner to us, as many other financial institutions are, and our focus is on our strengths. our strength are simplicity, on speed and cohesion of the tools that we provide to our sellers so they can provide the great experience for the buyers. if we can do that, their business grows, and we have a very nice loop in our business. >> obviously you guys are investing in the business, but you will be profitable this year. that's what we learned today. where is it that you're going to controlling costs to get there? >> we actually very a very healthy payments business, and

very healthy and growing software and data business as well. it's not a matter of managing costs, it's really making decisions around investment. we put our people first, our employees, what they're building, and we will continue to hire great people to build services that the people value and people love, and as we see that value, that increases. so on square has been a very strong and really predictable business for us, and we're really happy of that. we feel like we have a real understanding of how the business grows and what it takes to move it forward, and can really understand what to do next. >> going into today, there was a large percentage of the amount of stock outstanding in square that was being borrowed to short the company. why do you think people are betting against you or betting against square? >> i don't know if it's necessarily us. i think there's a lot happening

in the market that is complicated. i think we need to constantly show we're focused on the right things, on building great tools for sellers and that they value them, and we continue to see that growth, and i think we're not only a first mover in a lot of areas, and innovator in a lot of areas, but also we have the best experience, and we certainly compete with a lot, but what we find is that our competitors are only going after one part of the equation, whereas we're looking at a cohesive end to end of what a sellers truly needs, and that is really unique. so i think there's still a misunderstanding of everything that we do, and why, and as we continue to be able to tell our story, this is our first earnings call and our first shareholders letter, the first time we really get to get out there and talk about how great our business is and why we're excited about it, and how

sellers see it. we'll build that confidence. i'm not worried about that. >> of course, today there's confidence if we had this conversation a month ago, the stock would have been below the ipo price, and i'm curious what it's like to be the captain of this ship, of two separate ships during a time of such volatility? >> i'm really proud of the company for the transition it made from private to public. you know, we had a lot of conversations as a company of what this means for us, and what we should focus on. and there's going to be a lot of noise, we're entering into a market that's turbulent, that's confusing, and, you know, certainly has as many negatives as it does positive, but we're doing it eyes wide open, and we're doing it with an understanding of what matters. what matters is we're building a tool, and do people want to use it? if they want to use it, the value of our company increases, and we're taking a long-term view of that, but the only thing

we can control is what we ship. and if people love that, and if we're learning fast on that, then they'll continue to use it and continue to pay us. that is really what we have to optimize for. >> are you worried if a product stumbles, if you hit a roadblock that people will put the blame on you and say he's spread too thin? i'm concerned about a lot of things, but that's my strongest signal and my strongest barometer. and that's what we're going to focus on. >> all tech companies have had another item added to their to-do list with this recent situation between apple and the fbi. square and twitter have both filed amicus briefs, but obvious recognized because of how high

profile you are. eye wondering how jack dorsey the person comes at this argument. >> thank you for asking that and being concerned. i guess we're building a technology that stands for something. we're building a technology that has significant purpose in the world, and, you know, a big part of what we have to do is make sure that people feel safe using it. that's, you know, everyone who uses our technology, but also me personally, and i'm just honored that we are part of something that -- that really can influence and can really, you know, show people a different way of thinking. and changes the world and how people use it to change the world. i take a long-term view. there's always going to be negativity. as long as we're making people feel safe and that they it use

this tool and they trust it, we're doing the right things. i know you have an earnings call that begins moment team, but we appreciate your time today. >> thank you. jack dorsey, the cofounder and ceo of square. back to you. >> great stuff. by the way, a quick programming note, jack's former colleague and twitter cofounder, the man with arguably the greatest make, biz stone, will be on "squawk box" tomorrow morning at 8:15 a.m. eastern time. don't miss that. what did you think? >> i think they laid it out in a methodical way, but the business has to scale, get a lot bigger and penetrate more for the numbers to work. the cost of revenue is not trivial. it's not the most virtual business in the world. you know, break-even is great, well over a billion in revenue. i just don't know how much -- i think kayla was right to pin him down on square capital and the risks in that lending business.

>> a quick thought? >> one of the things that stood out to me is he feels like his business is misunderstood stood. the fundamental users get it, but the broader people don't get it. it seems like there's a communication problem. he's obviously such a visionnary, but it seems like had almost needs somebody to help explain toss stories better, to have the wider base of users. >> he said he was looking forward to the earnings call and they will build that confident. we'll continue to watch shares which are trading higher into the call. will samsung's latest smartphone crack the iphone's dominance? jon fortt gives us his review when we come right back. woman: is that a newspaper?

man: yes. woman: it's quaint. man: did you read about this latest cyber attack? woman: yeah, i read it on my watch. man: funny. woman: they took out the whole network. man: they had to hand out pens and paper. woman: yeah. man: could it happen to us? woman: no. we're okay. man: we are? woman: yeah, we brought in some new guys. man: what do they know that we don't? woman: that you can't run a country with pens and paper. it's not just security. it's defense. bae systems.

it's being touted as a true iphone killer. it's the latest version of the samsung gal's s7. smartphone watchers say it's out of this world, very clever of them, but let's find out from our own technophile.

but he brought a -- >> this is not an iphone killer. nice phone. it won't dramatically upset the power. apple is about halfway through the iphone 6s cycle, so it's type to -- in fact sam dunks needs to stop losing customers to apple, but the question here, is this phone the future of high-end android, and the reviews of positive. the screen is brilliant, lots of key features. the battery is bigger, so longer battery life. it charges faster. what are you doing, jon? what are you doing? >> the camera is great. in my quick test, it's significantly better -- >> you can't do that. >> mainly because of the recent lose of the photos, it years with a gear vr, which is the

virtual reality headset, which is nice. the iphone still has the edges in software simplicity. the vast majority of people here who will buy the latest are upgrading from something all right. they're already loyal to either android or ios. i think the forgot a features. >> or he just killed the iphone killer. >> i've been waiting for waterproof. >> >> it is, though i didn't do the toilet test. >> it happens so many times. >> does it? >> i wonder, how do you have to be sitting -- i like how the camera came on. >> have your sons try it out. >> it will be good for a meter and a half under water, at least that much, for a half hour is what they say. so i imagine it will actually be able to do that for a bit longer. i'll leave it in there parents

with kids, sure this is likely to be a positive feature. >> is it encrypted? >> samsung does not have messaging encryption the way that apple does, though the information on the phone is said to be encrypted. google backs up just about everything on the phone. like apple, if the government comes to going the with a court order and says give me what the person has in the cloud, google does that. the issue with apple advise fbi, the information encrypted on the phone that's not in the cloud yesterday. if you're an anidroid, most of the -- >> but you can't use the drop it in the water trick anymore if you're doing something nefarious. >> amphibious terrorists will not want this phone. >> what will jason bourne do? >> the galaxy s7 edge is going to be 750, basically. same price as the larger iphone, this is also a larger phone.

so it's in line in the premium, a qualcomm processor, which is a win for qualcomm. last cycle samsung did without qualcomm dragon, so samsung is using that processor in the u.s., in more developed markets. they're going with another samsung chip in china and other markets, but this processor performs better. so if this phone does well, that's good for qualcomm. >> and it comes in sparkly gold. >> i know, you've been singing that praise, too. it looks good. people are tuning in what the heck we're doing with a -- >> leave it there for another 26 minutes. >> jon fortt, thank you. see you later. >> sure. guys at samsung you are judd flipping out. yesterday a big wing for p

donald trump and bernie sanders. what it means when we come back.

another round of primaries and caucuses in the book. donald trump was the big gop winner, and democratic candidate bernie sanders, not just a surprise victory in michigan, our john harwood joins us with all the latest highlights. john? >> reporter: let's take stock of the race after that stunning victory by bernie sanders in michigan last night and the solid wins by donald trump in both michigan and mississippi. take a look at the delegates on

the republican side. donald trump with about a third of the delegates needed to be nominated. he's 100 delegates or so ahead of ted cruz. marco rubio and john kasich trailing far behind, and on the democratic side, hillary clinton, if you count the super delegates, has got half of the votes that she needs to be nominated at the democratic convention. if you take those away, she has a 200-delegate lead over bernie sanders. that's not easy to make up in the proportional representation system that democrats have, and then looks at the contests coming up. there's big states that are going to vote on march 15th next week. you've got ohio, florida, illinois, missouri. now, on the republican side, we switch to winner take all primaries in ohio and florida. that means it's very important for donald trump, if he can carry those states, he can grab a large chunk of delegates that he needs to get to a majority at the convention, but if john kasich in ohio and marco rubio in florida can win their home states they can deny him those

and give some home to the anti-trump forces that they can deny him a majority. as for bernie sanders, he's got to not only win squeakers like he did in michigan yesterday, but if he's going to catch hillary clinton he has to start winning big. not going to be easy, even if he's doing better than some of the polls indicate. guys? >> we'll see what the polls do into tuesday. >> john harwood, thank you, as always. when we come back, we'll count you down to the square and vox conference calls. both stocks on the move higher and news to get you caught up on on the exchanges. we'll be right back on "closing bell."

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and explore the range of aarp medicare supplement plans. sixty-five may get all the attention, but now is a good time to start thinking about how you want things to be. go long™. welcome back. i'm seema mody with some breaking news. nasdaq say kwirg international securities exchange from deutch for $is.1 billion and they plan to fund this deal from a mix of debt and cash on hand. the international securities exchange is the operator of three electronic option exchanges. bob grifeld, the ceo, says equities have been core to their busines business. for now, bill and sarah, back to you.

>> thanks, seema. >> clearly continuation and they are considering a reannounced merger with the london stock exchange. nasdaq bolsters the options and it's been the source of volume growth in securities exchanges right now. >> too many exchanges out there right now. it's too complicated. >> not just that, but in terms of really gaining synergy, if you look at markets and the condoll days that's happening, the ability to consolidate back in to integrate technologies is something that makes a lot of sense, not just for the companies but for the customers, so i would imagine they would see that try to continue, sure. >> notable to see the billion dollar deals continuing in this million dollar environment. mike? >> it's true. nasdaq as a company is pretty well positioned for this, about a $11 billion market cap, seems like it's healthy and stocks near a 52-week high. all of this works in being able to make them move. this is one of those rationalization deals. that's been the character of consolidation most of this psych. it's about efficiency and it's

not about bold new areas of growth. >> if you look at financial services broadly and we were talking about before the banks, i think that you'll continue to see more. >> i would think so. >> thank you, carol. always good to see you. sue you tomorrow. a huge thank you for sarah to stay up late and host "closing bell" with us and kelly feel better. catch sarah along with our pal will fred frost bright on early every weekday at 5:30 a.m. eastern and if you've not seen their sendoff of "house of cards" check it out. i didn't know you could act that well. >> i'm going home to go to bed. see you tomorrow. >> "fast money" just ahead. stay tuned. like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.

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"fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. our traders are tim seymour, peter najarian, dan nathan and guy adami. tonight on "fast" a flashing sell signal in the market. one sector that could be setting up for the perfect short opportunity. we'll tell you what it is, plus square higher on its first earnings report since going public. we'll hear from ceo jack do,,y with the latest headlines from the conference call which is just kicking off right now and later a sobering call on