the currency risk. you can own it in usd. >> i think you're a dividend -- >> daddy dividend if you want. >> i'm not calling you that but appreciate you coming on the program. >> thanks for watching "power lunch." closing bell starts right now. >> welcome to "the closing bell." i'm kelly evans on this friday. >> i'm bill griffeth. we begin with breaking news ste steve liesman has details. >> he talks about whether he wonders zero interest rate policy, putting interest rates at zero could lead to a period of low rates and low inflation for a long period of time. then he brings -- wonders about this new idea and said we need to studly more, if the fed were

to raise rates it could increase in inflation. he doesn't conclude that would happen but we need to think about that. he repeats kind of the normal argue amount for raising rates and says f1 policy remains extreme and inflation is close to target. not strictly endorsing but saying that's the normal argument for why rates should be normalized. former federal reserve chairman ben bernanke out with a blog about negative interest rates and says the fed is not out of ammunition but there are signs monetary policy is reaching its limits. they include lowering rates but not much to do there. a quarter point. forward guidance could be powerful. more quantityive easing and negative interest rates. what does he say sna that evidence from europe suggests they might be more powerful than had previously been thought and argues anxiety over negative rates could be overdone.

banks could still earn a profit by charging a higher rate than they pay. bernanke also says negative rates have modest benefits and manageable costs but points out there are legal issues and could hurt money market funds and probability of negative rates are low in the u.s. in the foreseeable future. bill, a theer receipt cal thing about this new idea that the rate you said gives inflation you said and ben bernanke weighing in on this controversial issue. >> steve. >> how much of a change in tone is this, milton freedman's 90th birthday party or speeches largely address s bank of japan at the time but saying we're sorry -- we did it, we're sorry, won't let it happen again, referring to the great depression. but also kind of saying quite confidently, central banks are never out of ammunitions. i do wonder just how tempered

his confidence has been over the past 12 years. >> i think reality has intruded on the theory as you remember. when he wrote that he was barely a federal reserve governor. it's so interesting you bring this up. i happened to interview him when he talked about the helicopter idea and i think ben is a lot wiser when it comes to the practice of monetary policy. and he's sort of tempering or changing his thinking with the reality of it and sees issues out there. he is sort of still theoretically saying you know what, the costs are manageable and benefits are there and it may be more powerful. what he hasn't seen in europe is this big whole sale move to cash and that gives encourage. they could be potentially used and one of the things he's arguing, we're reaching the end of the tools we use and should think of other tools in case we have another downturn. >> we should never forget that

economic theories constantly evolve. >> they joke that economics is the only discipline where things work in practice but then don't work in theory. >> there you are. as i said to you yesterday when we were talking about this, that's why god gave us two hands, on the one hand and other hand. before we let you go. remind us again. is bullardmore hawkish or dovish side. >> he has been in the middle but some of the theoretical work has been an intellectual pulling guard for the federal reserve. his ideas can become policy for the fed so we watch them closely and leaned hawk esh and dovish depending on the latest theory. a little all over the place on this one. we need to think about this idea. this for kelly i'm saying this, brought up by cochran in case you're interested in you want to

look it up online. for kelly, not for bill. no offense, for kelly. >> way too deep apparently. >> i agree. >> i was thinking back to the old joke about economists it was like, how do you get an economist to fix a lightbulb, assume it is fixed and it was something like that. >> we are in unchartered territories, a huge source of criticism and they are trying to figure out what makes things go and bull ard is bringing up issue, we've been at zero for a long time. it should have caused inflation. maybe this idea the interest rate we set will give us inflation is something we ought to be thinking about as far as he goes there. >> that's what critics have been saying for years, he's lending them so credibility here.

>> thank you very much. have a good weekend. >> harvey from wells fargo and ben willis from princeton securities and performance trust capital partners from the cme. ben willis, what's the rally been about, delayed one day after the fed didn't do anything and big rally yesterday, continues today, what's going on here? >> i think it's a followthrough first through the trading side of the equation and when we saw the fed pull back on their expectation of rates. we looked back and see what happened in the energy sector in particular. you saw massive short covering, that's telling you trading money, very smart money that had ridden this bear market down in particularly in oil and that changed the whole mentality

offered sideline. we're seeing money flow in the marketplace particularly in the consumer side. still safety issues, seeing money flow into utilities as well. you follow these numbers and i follow out of etf global some of the research on etf side. you're seeing that money go into those sectors, and bullard put out with the idea that raising interest rates may force markets into do something or force inflation ary pressures. the idea that he quoted reality intruded on theory, it was perfect. i will use that one for the rest of my life. it takes me back to my economics class and professor saying please don't talk you've been in the real world, i'm trying to teach economics here. >> speaking of the real world. what about the expirations we'll witness on the close today? >> really a nonevent.

the real event was the fed announcement the surprise wasn't that she -- a low energy trade today we're quiet five weeks in a row and two things ben bernanke has to know, the paper on debt deflation cycles look that up on google machine and bernanke has to look at japan. we're exiting policy so this exit will be experimental and a lot of chatter and add to uncertainty. we're going to be all watching the the central banks going forward. >> we're going back to economics classes this week after -- >> and notably to the great depression too. >> i guess. >> what's a treasury market to do now? they've been anticipating a rate hike at some point this year but maybe they won't get one until june, maybe not until december? what are you going to do with this market? >> i think we may get one rate

increase and second half of the year and treasuries to me are still in a trading range. what the fed is doing in the shortened of the curve doesn't have much to do with the 10-year. i think the 10-year is still in a 1.5, 2.45 trading range and the fed has given the all clear for a little bit of speculative end. >> by the way, what do you like here when we start to look how you play markets in this volatile and unprecedented period for central banks? >> well, i think that some parts of the equity market are attractive and utilities which has been a real surprise for investors will continue to be an attractive area. they have growth that i think will be competitive with other sectors and i think the consumer sectors discretionary resulted to housing and autos will continue to be strong. i think consumer staples. those areas will continue to be good. i think in health care, some of

the tools and devices and services companies will be good. they don't have the price fallout that the pharma side does. >> what are you expecting from this expiration? brian says maybe a nonevent. i know volume is already very heavy from the open this morning. this is the first big expiration of the year. what do you think will happen over the next 15 minutes. >> big volume. i think the bias is to the upside going to the idea of large institutions that are short, forced to cover into this and going back to the segment prior on the dividend side, there's a realignment of the vig etf, the dividend etf. you'll see some plays in particular with these stocks no longer in that group with some pressure coming out. and trading opportunities inside if you will and bigger number you'll hear from art cashin i'm sure you'll hear to the buy side as we continue with this market.

from individual stocks, should have good dynamics. >> we appreciate everybody being here. with about 50 minutes to go in a market with a dow up 120 points. week five of this rally from the recent lows and s&p up 9 and nasdaq up 22. >> starwood now agreeing today to sell itself to a chinese company and calling off the deal with marriott. we'll take a closer look at all of the foreign money piling into the united states this year, the numbers will surprise you. >> also ahead, oil has been on a five-week tear along with the stock market, we have someone who says all of the signs are pointing to a sell for crude and he'll explain why coming out first in business worldwide.

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.

our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com

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. i'm a customer relationship i'm roy gmanager.ith pg&e. anderson valley brewing company is definitely a leader in the adoption of energy efficiency. pg&e is a strong supporter of solar energy. we focus on helping our customers understand it and be able to apply it in the best way possible. not only is it good for the environment, it's good for the businesses' bottom line. these are our neighbors. these are the people that we work with. that matters to me. i have three children that are going to grow up here and i want them to be able to enjoy all the things that i was able to enjoy.

together, we're building a better california. >> dow is up 130 points and s&p is bumping up against what some traders feel is today's resistance level 2050 and the nasdaq is up half a percent. if you're real good, kelly will tell another economist joke sometime over the next couple of hours. let's talk about tiffany, rising on better than expected earnings however full year earnings will be unchanged from last year as the lackluster global economy has hurt sales, stock up 2.25% right now. >> starwood hotels reaching a deal. $13 billion in cash topping marriott's offer by 15%. marriott says its takeover offer is still the best. >> they'll have to raise it if they want to get into the story.

dominic chu has a look at the surge in foreign companies doing deals here in the united states. big numbers, dom. >> to add on the starwood discussion, one of the big shareholders, john paulson, big hedge fund manager, just come out according to reuters with comments saying that he welcomes shocking right, this idea of another bitter looking at starwood hotels and good for the overall process. that's breaking in the last few moments or so. let's get back to the overall picture for -- it has been a pretty big year for 2016 year to date for cross border deals, specifically the ones targeting u.s. based companies. look at the broader stats, according to richard peterson at global market intelligence, they had about $250 billion in u.s. volume so far year to date.

$250 billion worth. 116 billion, thereabouts involve foreign buyers of those u.s. assets. that's about 46%. so nearly half of it is foreign companies trying to buys u.s. companies or units. if you look at some of the biggest yields we've seen so far this year, among the top ten, around seven of them are foreign companies targeting the u.s. ones here. take a look at the biggest ones out here, shire looking to take over baxalta, anbang insurance trying to take over starwood. trans canada yesterday trying to buy columbia pipe line, $14 billion. and fortis, looking to buy itc and hna buying ingram micro. there's not enough room of course heyer trying to buy ge's

appliance unit and heavy industry in china as well. a big part of this picture so far but a lot of foreign companies trying to buy u.s. assets driving the activity so far in 2016. >> all right, dom, thank you very much. let's talk about why more foreign money is coming into the u.s. when it is. joining our friend rich peterson from global market intelligence. ris stick that jumps out of the top six all time chinese acquisitions in the u.s., five have occurred this year. that's amazing. why now though? >> these are incredible numbers. i was pondering the data, deal trends and looked at the big deals. obviously the starwood of anbang in lodging. back in 2013, chinese group bout smithfield food and package goods and also recently deals in

the entertainment business. i think these are bets on the consumer and still the growing middle class globally and not in the united states, not in asia, worldwide. these entities are looking to make bets on growing middle class worldwide. >> when chinese are cracking down on people transferring personal wealth out of the country, whether the companies are looking for the same type of diverse fiction. >> we don't know what's going on in terms of internal politics of these firm relationship to the chinese government. but the fact is we talked about as dominic chu said, of the top u.s. deals this year, seven involve foreign buyers. in canada, the largest ever canadian acquisition in the u.s. energy sector yesterday with transcanada making the bid for columbia pipeline. last year record volume, $2.3

trillion, $450 billion came from u.s. companies buying abroad. of the big chunk was pfizer making a bid for allergan. if you extrapolate year to date, we'll have a record year for foreign acquisitions in the united states. >> are they getting a good deal? i've been hearing a lot of chatter reminding people about the 1980s when the japanese were buying up u.s. assets at that time and years later had to sell them back at pennies on dollar. is that likely to happen this time around or are they getting a good value this time? >> you go back into the way back machine and the japanese were buying rockefeller center or pebble beach, buying luxury items in terms of rockefeller center, that's a commercial property. maybe as opposed to now with starwood, more of a residential property and going back to my thesis, more of a bid on the middle class, looking at the different times, these numbers

are phenomenal. >> how much more do you expect them to pick up? we're only midway through march here. >> the fact is there's rumors that german chemical company was maybe looking at breaking up the dow chemical dupont bid. a lot of companies in the world of negative interest rates, where are you going to put your money? maybe in u.s. assets. >> all of the deals better have good break-up fees, they are going to be needed. >> leave that to the lawyers. >> thanks, good to see you. >> rich peterson. as we head towards the big expiration of the year, this third friday of the month of march, the dow up 128 points off the highs and s&p stick holding at that 2050 level. >> what a tough week for valeant pharmaceuticals wiping out more than half its value, meg terrell will tell us if the worst is over. financials are higher thanks

to stock buyback increases at two the biggest banks, we'll look at the financials maybe have finally turned a corner coming up.

another strong rally day, interestingly it is the strongest of the three averages, both the s&p and nasdaq half a

percent higher. s&p up 10 and nasdaq 23. here's a look where the strength and weakness is in terms of sectors, industrials leading the way this week. >> not just today but this week. >> you might wonder about names like caterpillar, you know some of the material industrial space that's been outperforming latedy. 3.5 gain for industrials and 2.5% higher for materials, and health care is the one in the red down about 2% this week. >> let's look at other mover for this friday. wynn resorts trading higher. citing a new generation of vip gamblers coming into the area, expects this year's gross revenue to fall only by 6% compared to the previous forecast of a 13% decline. >> adobe systems notching gains today. you heard about it late yesterday. reported better than expected

earnings also gave up beat guidance for the current quarter as digital media sales surged at adobe -- >> shares of valeant are down again today. meg terrell has a run through of challenges facing this troubled drug company. >> it has been a nightmare of a week for valeant and shareholders, if i loork at actually health care, this is the biotech etf mapped over that. analysts are saying rest of health care has gotten hit what's going on with valeant. it is the only sector that's lost this week. just to recap what was so bad with valeant this week and on tuesday they gave their fourth quarter earnings and forecast that was drastically lower than people expected and no clarity when they'll be able to file their 10k, that has a lot of

implications for their $30 billion in debt. so that is what people are worried about right now. mike pearson sending a memo saying some expressed concerns whether the company is on the verge of bankruptcy. i can assure you we are not. that has to do with time lines for filing a 10k, what is next for valeant? anything that comes out as to what they are negotiating with their lenders over extending deadlines to file and potentially asset sales. the company plans to die vest of noncore assets to pay down debt faster. people will look for what assets there are and what type of terms they are going to go. that will affect sentiment, pretty much as bad as it can get right now. >> the journal pointed out too, the fact they have $17 billion in good will on the balance sheet looks suspect, the whole thing is only worth 10.5 billion

so. it will be interesting to see if people looking at the stock as long having fallen so much can push the valuation back up. >> i've been asking around trying to find out if there's anybody that sees it as a long right now. i'll continue to make calls. >> tough time to be selling assets at this time. there's no way you'll get a pretty penny for any of those and you wonder the fear could be that they are going to sell valuable assets that would help them grow in the future. >> a lot of people say the most valuable looking assets is something they probably shouldn't sell. things they don't want, why would anyone else want them too. they are speculating over what it is that can be sold and valuations we've been seeing speculated on. there was a note from bmo which said one of the assets, female sexual dysfunction drug bought for a $1 billion maybe has a value little more than 300

million. pretty distressed assets. >> welcome back to the job, michael pearson, tough right now. thanks so much, meg tirrell. >> we start with breaking news that we're following out of belgium. an active police operation is under way in the town of mollenbeek. new vitd video from vtm shows an apparent arrest from today's raid. it's unclear if the person taken into custody is abdeslam or someone else. police are at least looking for one more suspect. two large explosions have been heard near the house where abdeslam was arrested. he had been on the run since cape escaping capture last november. authorities believe he was the driver of the car that tooked

armed gunmen to the bataclan theater in paris where 89 were killed. today's operation follows another raid earlier in week also near brussels which resulted in the death of another man whose profile matches that of an isis fighter who wanted to be a suicide attacker according to documents obtained by nbc news. we're expecting to hear from belgium's prosecutor on today's events and in a few moments they will hold a news conference. we'll bring you any headlines when it occurs. but the operation is still ongoing, there are still riot police on the gound there in mollenbeek. >> the dow up 131 points today and s&p up 9, transports having a good session. nasdaq up 20. >> that 2050 number, traders were telling me to keep an eye on, still sitting right there. >> a leading trader will tell us

what he's watching into the close next. >> a debatd over whether or not oil's rally can last. we found a bull and bear. we'll bring them together when we come back on "closing bell" after this. ♪ ♪ he has a sharp wit. a winning smile. and no chance of getting an athletic scholarship. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade.

the transports are having a nice rally day today. that index, about 122 points at the moment. american up 2% and delta up 3%. a lot of names and the rally continues to change. >> we're 26 minutes left in this trading session. i've got kenny from o'neill securities with me on the trading floor as we head towards the end of the first big expiration of the year, this day and already heavy volume. what do are you expecting to happen in the next 20 minutes? >> there's going to be heavier volume. huge imbalances, they've been talking about 2.3 billion to buy moc now starting to flip and it's going to be big either way in terms of the volume but i think the market will hold right

here, 2050 is the strike price. we're not going to 2070 or 2030. we'll trade a lot of volume and the last minute of the day and the day will be over. >> that's the pivot right there. >> you can feel it. it's right here all day hugging around that line. >> what was this rally about this week? how much of it was the relief rally about the fed and how much of it was getting ready for the xpoirgs? >> i would say 70/30, much more about the fed than the expiration. if the fed had maintained the line and still talked about four rate increases we wouldn't be trading here and would have found a different pivot point. but we got to here and found this level where there's decent resistance and that's where it's going to pair off. >> five weeks of gains, now what? >> i think over next week and a half until earnings season, we churn and got 2020 on the downside which was resistance now support. and i think we got right here, 2050, maybe 2070 as upside resistance but we'll be tight in

the range until earnings season. >> i'll let you get ready for the expiration. see you. >> one gauge to watch is oil. it's been up for the past five weeks, 50% since february 12th. it seems to be a matter for debate. larry mcdonald is acg analytics and cnbc contributor, president of lippow oil associates. you're not a big fan, you think this is a sell at the moment? >> bullish a month and a half ago on cnbc very vocally. what i'm disappointed in, we have a giant surge in oil but the spread between double b bonds and high yield bond market and triple cs is still 1,000 basis points. so credit is not buying in to a large degree relative to equities, number one. number two, the producers, the guys chevrons of the world, guys that should know are aggressively selling on hedges and under hedge for 2016 and

number three, you've got 3 to $4 trillion of debt. 3 to $4 trillion of debt that's tied to oil and emerging markets. as oil rises, people have to pay coupons and they have to increase production at a level where historically they wouldn't have to do so much of that because of debt. they have to increase production at these levels. >> andy, like stocks, oil has had a pretty good five weeks here, big rallies and how much higher if you're bullish, how much higher could we go do you think? >> i think we can get to $50 a barrel at the end of the year for a couple of reasons. first we've got iranian oil. it's back in the market. but probably less volume than the market is expected. we continue to see u.s. production declining and i think it's going to decline more than people expect. and i don't think the banks will be lendsing as much as they like and the third thing, we're seeing a significant amount of supply disruptions between nigeria and iraq taking barrels

off the market. >> do you know where the missing 800,000 barrels a day are? are you familiar with this? what do you think is going on? >> what it could be really is that the iea is understating demand at the same time they are overstating what the supply is. and they'll make a revision later on in the year and what we're seeing actually is not really a $2 million barrel a day surplus because the market structure is certainly not deep enough to recognize that kind of oversupply. we're certainly not seeing that amount of ves sells storing crude oil. >> i know you went through a litany of pretty sophisticated reasons why you think oil is going to go lower. couldn't it be as simple as supply and demand? supply is coming down and all opec has had to do is jaw bone this market. threatening they are going to freeze production. we've already seen a number of

companies go offline here in the united states and demand, the api numbers, tremendous demand for gasoline and for oil out there right now. wouldn't that push prices higher. >> the one thing that's going to impact demand is the fed. economists have lectured us how strong this economy is for a year. and the fed still has two hikes in the dots and average economist thinks the fed will hike two to three times this year across the street. that means that you know, it's march, that means the market will have to start pricing in hikes and what we've seen over and over again is the credit will veto the fed policy path. in other words as they start to price in hikes, oil dollar will move higher again as we saw all last year and beginning of this year, higher dollar, lower oil and whole cycle keeps repeating itself. >> how quickly do you think supply could get back up and running as oil prices do rise? as they do towards the $50 mark. some say it could come online in

a second and others say between people having left the industry and capital depreciating that wouldn't happen and price would be able to shoot much higher. >> i think it's going to take a good six or eight months. it's not like oil prices will rise and we're going to bring on all of these unkpleelted wells all at once. you have to get the worker and rigs and mobilize people in the field. one thing i'll point out on nand demand, seasonally demand will go up 2 million barrels a day and oversupply which will give the market a new look on prices. >> past the recent lows? >> the this is a secular bear, other side of the mountain. they end in long valley and back to 30 to 32. >> look at the gold market. >> gold bounced on bottom for 18 months and then we sought coming

into a real bull market. >> good discussion. larry mcdonald, good to see you. >> 20 minutes to go and we're hanging on to gains, we'll watch again to see what kind of volume we're talking about on the close. and dow is up 135 points and s&p nearly 10. >> at 2050. big banks banking on themselves, bank of america, latest to join the list of financials buying back their own stock and bob pisani will break that down. you may be forbidden from taking a selfie at the australian open or running with the bulls in pamplona but it may be the new and easy way to shop on amazon. we'll see if this is the end of western civilization or brilliant e commerce.

ashley bryant, you are a teacher of small children. that's right. i have read it is the hardest job in the world. that's why i'm here. can you... i can offer advice from the accumulated knowledge of other educators... that's wonderful but... i can tailor a curriculum for each student by cross-referencing aptitude, development, geography... sorry to interrupt. but i just have one question: how do i keep them quiet? (pause) watson? there is no known solution. yeah, i was just talking uhabout yourico?... emergency roadside service and how it's available 24/7 and then our car overheated... what are the chances? can you send a tow truck please? uh, the location? you're not going to believe this but it's um... it's in a tree. i wish i was joking, mate, but it's literally stuck in a tree. (car horn honking) a chainsaw? no, no, all we really need is a tow truck. day or night, geico's emergency roadside service is there for you.

hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. the dow up 128 and s&p up 9

and sea world entertainment is jump and wells fargo upgraded the stock to outperform citing the new path to improved attendance. you have probably heard they would stop breeding killer whales and forcing them to perform tricks at its theme parks. attendance fell after the 2013 documentary called black fish was released. it was critical of sea world's orka program. >> i didn't realize they can live 50 years, existing ones. >> i had no idea. >> financials are the best performance, both are buying back stock here. let's bring in bob pisani. >> they are all up. it may be a vote of confidence in the banks by the federal reserve. first jp morgan, buyback $1.8 billion. remember they had a $6.4 billion buyback they authorized just last year.

so that stock is trading on the upside and jp morgan the highest level since january. you see the interday moves. what's going on with bank buybacks here. wells fargo had one back in january. it is a positive sign. the feds have to give nods to bank buybacks and i think it implies capital base is stronger for banks and they can afford to spend money to reduce their share account. come back to me a minute. bank of america also authorized a shared buyback, up 3%. 800 million. they had a 400 million share repurchase but also said that they are offsetting a share count dilute gs and not reducing the actual share account out there. look at the banks, all trading up. remember the banks have lagged this week because generally

rates have been done. bond yields have been done and that's hurt the banks but today all of them are out performing very nicely. finally, i want to make you away, we have a rebalancing at the s&p at the close. four or five or six stocks having shared count reductions, all of these are having shared count reductions. you'll see a lot of volume. this will probably be the biggest volume day of the year. >> and what was monday? >> monday would be the second biggest -- >> it was the lowest volume day of the year. >> we started with the lowest and we'll finish with the biggest one, that kind of week. >> thank you. >> sorry, i didn't mean to trip him up yet. >> it has been pretty light around here. the dow is up 129 points and paced by the financials and goldman and jp morgan up 3% and s&p up 10 points. when the market seeing green 12 of the last 14 days, our next guest says the rally is just getting started. he'll explain when we come back.

i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. plan your never tiring retiring retired tires retirement our cosmetics line was a hit.

the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey. will you be ready when growth presents itself? realize your buying power at open.com

as we head to the close with the huge expiration, art cashin pointed out we have $1.6 billion

to buy on close orders, that's the imbalance right now. kenny thinks a lot of that will pair off. the s&p still sitting on the 2050 strike price as we head towards the expiration. joining us here on the floor, david from matrix asset management. we were talking about the buybacks and you like the financials. but aren't you supposed to like those when the fed will raise rates? >> the fed will ultimately raise rates. the market up 12% in the last six weeks and factors that have taken it up will kick in with the banks. we think there's going to be a lot of catch-up and more selling at 10, 11 times earnings. energy portfolios will be bad with energy pliss rebounding. >> would you be selective? >> we have goldman and morgan and regional banks on oil exposure have gotten hit. go to the money center banks.

are there any particular parts of the banking sector you do and don't like? >> we think the group overall will come up. we like the jp morgan and wells fargo best and morgan stanley and goldman sachs. >> here we are at the end of the five weeks of rallies, five weeks of gains for the tomorrow. we quoted you in the tease as saying you think the rally is just getting started. >> we've been saying buy -- >> you said five weeks ago. >> we were on the air saying buy aggressively on the dips. we think it's going to be a 9 to 11% year with a great deal of volatility. we had a 12% jump. we think it will slow down and you'll have ups and downs, the next 5% pull back, when things look very bad, usually you can put money to work and make money. we wouldn't chase this rally. when there's a pullback, buy because stocks end up 9, 11%. >> would you go with leaders from the recent lows, materials

and industrials and transport kind of names or a space like health care that's been harder hit? >> we think the industrials that have started the turnup will do better. so we like a company like johnson controls and united technologies. in terms of health care, much more selected, a gilead will do well and zimer. we wouldn't buy it whole sale. one group we are weary of, utilities, we would be taking money out of utilities. if you look at them on a valuation basis, selling 17 or 18 times earnings, even though yields are okay, that's the extreme over the last -- >> you anticipated my question. they have been leading this market and continue to be unloved in many cases, there's a lot of skepticism. i would go with growth -- >> someone is buying them. the etfs, there's a lot of flow of money and when they get money have to put it to work immediately and we can see the

stocks moving up without a lot of strength. >> thank you so much. we're coming back with a closing countdown as we head towards the expiration. dow up 121 points. >> if a new 4-inch iphone sends a chill up your spine or smaller ipad has you excited, monday will be for you. we'll preview both stories coming up. you're watching cnbc, first in business worldwide. trolling for a gig with braindrone? can't blame you. it's a drone you control with your brain, which controls your thumbs, which control this joystick. no, i'm actually over at the ge booth. we're creating the operating system for industry. it's called predix. it's gonna change the way the world works. ok, i'm telling my brain to tell the drone to get you a copy of my resume. umm, maybe keep your hands on the controller. look out!! ohhhhhhhhhh... you know what, i'm just gonna email it to you. yeah that's probably safer. ok, cool.

in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile... even when i'm on the move... ahhh.

three minutes left, i'm going to go to the twitter sphere with that one, talking about the $10,000 bill. is it still in circulation? let us know. >> on the cover -- on the face of the $10,000 bill. we go back to february 11th and we've had five consecutive weeks of gains for the stock market and in that time bob pisani, the dow is up more than 10%. we're finishing the week at the highs for the year. any positive -- wti crude a little lower today in the five-week period we had a gain of 43%. is that what that says? just under $40 a barrel. the 10-year yield in that

five-week time as stocks and oil were going lower, were also moving higher at 1.87% on that 10-year and the vix boy has that gotten clobbered. we're now below -- just dropped below 14. >> here we go, two minutes left, a lot of volume coming in. >> we'll do -- this may be the biggest volume day of the whole year, maybe throughout the remaining nine months or so. we'll probably do a billion shares right at the close. as far as the week goes, this was the week for the dollar and the weak dollar -- put up the dollar down over 1% for the week. and that helps fuel a big rally in material stocks and energy stocks as well as in industrial stocks. >> a lot of chatter whether there's coordinated activity going on among central banks to push that lower. >> interesting pictures of janet yellen talking to central bankers and jack lew, no formal

statements but this is out there. >> it's in the best interest of the economy to have a strong dollar. >> that's absolutely true. >> that's what we always hear. >> here's the key stocks to watch at the close, a number of big names are having share count reductions due to buyback programs we had. ge and apple and mcdonald's, the name of the game is reduce the share count but did not influence the price. there's a lot of machinations going on. all you want to do is move around a lot of volume here and shares. facebook is having an addition -- rather significant add to their waiting in the s&p 500. right here at close, right at the highs for the week and s&p now in positive territory for the year. the only debate is whether or not this weakness in the dollar will continue. as we get closer to june more

likely fed hike will that weak dollar continue to hold. >> that's what we're keying off off. thank you, macy's is ringing the closing bell. at the nasdaq, it's the new york city mission society. stay tuned for the second hour of "closing bell" with kelly evans and company. enjoy your weekend. [ applause ] >> welcome to "closing bell." let's look how markets went out with big volume on the bell there. it's an options expiration day, dow up 113 points paced by financials and jp morgan and goldman. another strong session and broad market s&p 500 could be quite close, we're watching that level in the market and s&p up 8 points,.4%. same kind of gain for nasdaq there which closed up 20. joining today's panel, senior

markets commentator mike santoli and for more on today's market action, tim seymour joins us as well. five weeks of gains from the lows. >> five weeks of gains, first time we had five weeks which each was up 1%. since the very beginning of the bull market in april of 2009. really applauding -- kind of impressively resilient performance. we did close out right hugging that 2050 mark. no surprise given it was an options expiration. i think the talk now has to be comparing this rally to the rally we saw at the end of the september into early november. exactly the same magnitude, 12% on the s&p 500, got up to a lower high. vix went down to 14. a lot of stuff fits. i don't think that means it fails badly but it's going a long way in a hurry. >> it does seem they have been sharp and swift. every time we had a correction it's come roaring back.

we may have the biggest turnaround for the quarter. >> remember back in february and january and china and u.s. economy, we were all freaking out, markets were entirely freaking out. those predictions of doom did not happen but i must say that the conditions in in place across the global economy with central banks pumping and pumping with deflation and problems in china, i don't think the major macro problems have been resolved in five weeks. >> it seems like we were bailed out by the better u.s. economic data and if we were looking to the central bank or bank of japan, are they achieving what they are trying to achieve here? we know in terms of weakening currencies, it's not working. >> that's one of the reasons why the dollar is weakening. you've almost got to -- acknowledgement from the ecb, maybe even bank of japan that there's limited sponsor reaction. negative interest rates didn't work. are they stepping back from aggressive -- ecb said we have

to lower rates. my phone going off here, sorry. thedy vergence between central banks not as great as people thought, that's pushing the dollar down because the fed doesn't have to be more aggressive than everyone else. industrial output out of europe has been fantastic. you had empire fed and this week you had philly fed which were much better, maybe getting a bounce on the industrial side. everybody that said recession and credit disaster and china yuan, these are things that really you can't play for a credit event as an equity investor and people overtraded this market. >> the problem though a lot of momentum, playing into the growth story here and it's going to be hard to get much better for improvement to keep building. you have that factor and issues out of china which the first time we see evidence that the outflows are picking up again, you could get the whole negative psychology. >> what you're playing is the

swings in perception of an economic situation that real sli isn't changing that radically. the markets are moving more dramatically than conditions fundamentally and you got this rally that unwound a lot of first fears but get to this level and say did the market get cheap? not really. did big things get fixed? no, you about they weren't as broken as we thought they may have been at the low. it doesn't mean again that we can't stretch it higher. if you have a fed that's a more measured pace and economic data continue to come through, we can bridge ourselves right to the earnings reporting season and guess what, they don't have to blame the dollar any more. >> we mentioned a lot of people seem to be taking money out of the big winners last year, amazon, netflix, alphabets of the world and putting them in a broader basket of stocks, including transports and industrials -- look at caterpillar after it really lowered its outlook. it seems like a corner is being

turned there. >> so far this year, you know, i really find it interesting whether the market will respond with the intensity on the downside. if there are upside surprises about u.s. economy, perhaps you see inflation in europe which is kind of a fantasy but let's say you do see that and see positive things out of china. will there be a positive surprise? we're almost elated here but let's keep in mind that the u.s. stock markets are basically flat for the year. it seems up but it's really flat. we're back where we started in january. economic conditions remain -- as my great college says, we're suffering from a chronic condition and not acute condition, chronic condition of low economic growth around the world. >> no surprise, that has pushed people into parts of the market like utilities and dividend payers where they perceive they are a little safer and ride out the storms and get a good yield which you can't find in the fixed income space. these parts of the market are becoming expensive.

>> very expensive. >> what would you do when you're faced with paying up for those areas or going to more parts that could be more vulnerable? >> i'm not sure you have much value left, but i could make an argument that the stock market should be trading expensive based upon where fixed income yields are. the s&p in the defensive and personal household goods, some of the food products, cokes and mcdonald's, these are not cheap stocks but when you consider the dividend yield and balance sheet of these companies, i would argue that they may still trade expensive and should trade expensive. the bar bell that has been those stocks and emerging markets and industrials and the things you talked about largely worked. to suddenly say they are not going to work is to try to overtrade this market. everybody is saying either the economy is not that good and everybody has been wrong in terms of where this thing is going. >> actually, let's get more on

that. just so everybody knows, art cashin said we did more than a billion on the close, an indication of finally seeing real pickup in volume in this market. to what tim was just talking about, everyone being wrong into the year it has been a brutal period for hedge funds for a lot of active management strategies. how bad? >> the favorite stocks of hedge funds as measured by goldman sacks down 6% into this week. we're at about a flat market. obviously lots of crowded trades got punished. we know bill ackman got buried in valeant pharmaceuticals and kef griffin, his biggest strategy, down through march 11th. these are relatively big losses. when you ask why not just favorite stocks underperformed and gone down but least owned stocks have been the best performing. utilities, consumer staples, big boring dividend stocks.

the question is, is this a passing storm or just their strategies are out of favor? i think you got a market last year very picked over and no longer cheap and the credit market rebelled a little bit. therefore the activist and financial engineering strategies didn't go so well. you have a lot of people crowded into a hand hl of ideas they thought could work. >> there are a lot of pension funds and all of this kind of money tied up in hedge fund strategies supposed to help them right oud storms. >> those are getting increasingly uncomfortable with the amount in hedge funds. big numbers still going in there but percentage is on the decline. i expect around kentucky kerr by time, first saturday in may, kelly, for us to be talking about hedge fund withdrawals. and end of the quarter at march, there might be a few weeks of notice about withdrawals and

redemptions and perhaps mid april into may we'll be talking about hedge funds redemptions. >> i wonder how much is locked up for pershing or one or all of the funds, only can withdraw an eighth of the money at a time. they are trying to make it trickier -- >> pershing is unique. they were able to set terms with their investors when they had all of the power. they do not have that leverage and i expect to be a lot of discussion about hedge fund redemptions and closures. >> beyond this move as well, the response would be for the funds themselves to start playing around the with fees they are charging and maybe say we're not justifying two and 20. then what? >> that's been the story for a while. as dennis suggested, funds folded up. if they don't catch lightning in a bottle. they would rather just followd and start again. bigger funds for bigger clients they will negotiate fees, not a flat take it or leave it thing. in general it's a luxury good.

part of the sales proposition, we only make money when you make money. give us resources to do that and we'll get it done. a percentage of inflows going to the most established funds. it's tough to be a startup hedge fund right now. >> alignment of interest is very important. i've been a hedge fund manager for the past few years, it's all about -- i get paid when you perform. i think the fee structure is coming down but to say that a lot of these guys are packing up shop, i think the big are getting bigger and therefore they are not doing as well. the other problem with the market right now, there's too much index huggers and etfization has meant that they are trading around the index. hedge funds should outperform that market. if you with pick stocks and noncorrelated. that's the best way to outperform. when everything is going up, hedge funds will underperform because they are paid to be hedging off risks that tlarnlgly over the course of five or six or seven years wasn't really

there. i think they under perform because they are beating themselves up at the lows. >> of course we saw in the beginning of this year hedge funds were supposed to be providing protection. they did not. they over underperformed if i may use that term. i don't know if that's been the case so far. >> i'm not sure we can judge hedge funds until the end of the quarter at the minimum. if you're judging on a month to month basis which a lot are paid to do, a lot of guys may have overtraded but i would imagine the first quarter unless you were in a crowded trade like long dollar, short high yield, you probably did protect risk for investors in that quarter. >> thanks for joining us. >> be sure to stick around for "fast money" at 5:00. guy adami gets a look inside domino's 17% rally this month. there he is in the kitchen. don't miss it. we have a news alert ahead of next week's primaries, what's happening? >> we have a new statement from

former republican presidential candidate mitt romney weighing in on the side of ted cruz now ahead of the utah caucus vote next tuesday. here's what mitt romney had to say in the statement he put out within the past couple of minutes. at this stage, the only way we can reach an open convention is for senator cruz to be successful in as many of the remaining nominating elections as possible. he says i like governor john kasich, i would have voted for him in ohio but a vote for governor kasich in future contests makes it extremely likely that trumpism can prevail. almost endorsing ted cruz saying that he likes john kasich. why is this important? we'll see that caucus in utah on tuesday. obviously in utah there's a substantial mormon vote and many of those voters may look to mitt romney for guidance how to vote and arizona voting on tuesday as

well. mitt romney trying to tip scales in favor of ted cruz at least temporarily and get to an open convention which he says is the goal here. >> does mitt romney have any pull outside of perhaps state of utah? do people care what he has to say? >> i don't think the voters who are voting for donald trump don't care what mitt romney has to say. you're right. in utah there could be a distinction and that's coming up on tuesday. the timing is so interesting. the question i have, how convoluted this voting strategy is and the end game for the trump campaign, folks who don't want to see donald trump at all, tell being people who like john case itch, they should vote and getting john kasich down the line in an open convention which maybe could happen is a string of ifs and what ifs and therefores that's complicated for voters to follow. they are used to voting for the candidate they want to see as

president of the united states. whether this will work or not is an open question. >> interesting twist on the eve of utah's primary. >> it's not just tim cook saying the fbi is overstepping bounds. up next, we'll tell you who else the tech giant is refusing to work with the government. you can pay with your phone and watch and soon might be able seriously to pay with your face, amazon wants to patent a pay by selfie technology. the risks and rewards of that system coming up. sales event is on. with extraordinary offers on the exhilarating is... the thrilling gs... and the powerful rc coupe. ♪ this is the pursuit of perfection.

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 facing head winds in the fight to help apple hack into the shooter's iphone. even if they win in court there could be another roadblock eamon has those details. >> big story raising this intriguing possibility here in the apple versus fbi fight and possibility is this, that if apple were to lose in court over the issue of whether or not they should create new software to unlock the iphone of the san bernardino shooter farook, if

they lose that case in court, some apple engineers cohen gauge in software version of civil diso bead yens and quit jobs at apple in order to not have to comply with the government's demand. apple said it would take six to ten years a month to write the government operating system or government os. they say that would be relatively doable and tim cook has said that if apple loses in court, it would comply ultimately with what the court is asking apple to do. the risk here is not to engineers. the software market is so hot for programmers in silicon valley. these people could likely find other jobs at other firms and would be snapped up quickly. the potential is foredamage actually to apple if they lose their top programming talent over this fight with the government. a fascinating wrinkle in whether or not we'll see silicon valley

civil disobedience that could be an intriguing point. >> thank you again. before apple heads to court tuesday, having an event on monday expected to introduce a new iphone and ipad. the stock is up 10% but the except tickism that the new products will do much for shareholders going forward. brian white, global head of technology of hardware and software and max wolf at manhattan venture partners. i know you like the company and the product line. but why are these two properties in particular going to resonate here, smaller new iphone and new ipad? >> this is he vent is a stepping stone to a recovery in apple stock and we're looking forward to the iphone 7 in september. there's incremental positives. one is the mid range smartphone market, apple can't tap into that. they tried with a 5c, price

point only $100 cheaper and features weren't there. i think the iphone 6c can tap into the markets. 80% is coming from asia this decade. >> do you think it's the right strategy to try this one again? >> i think it's worth another shot. i think that apple is a premium phone provider and foras into everything else can be more sort of mixed than we would have expected. there's a risk we'll see a slightly underweming event. any time you have an event and part of the excitement is watch bands i'm not sure it's an edge of the seats scenario. i do think it's probably positive. i think the stock is oversold like apple where it's headed don't know if i'm totally bought in on the idea the event is a big game changer. >> what's your price target? >> $200 price target and that's

based on 18 times our 2017 estimate plus net cash per share. if you look at the d.c. f model, you can get over $200. this is one of the cheapest tech stocks in the world -- >> which has been true for a while. >> it has been true. >> people just view it as this is a nokia, motorola, they'll go by the wayside. that's not happening. the competitors have been struggling and it's going to be tough today and in tomorrow and the future. >> do you know there will be any precedent of the market looking at the largest company in the market and getting it wrong by 100% in terms of valuation? >> i would say this. >> forget about the absolute cap because apple is gobbling up industries, right. >> books, camera, although market cap is being concentrated under the apple umbrella in my

vi view. >> i'm talking about how plausible, most widely followed in the world to be that badly understood? sfwl i think the valuation will expand. i have no doubt in my mind this multiple can expand from this level. >> i think it's a bit oversold. i don't see it going above 145 or 150 unless they show she can get into another industry and dominate. the watch still kind of not quite clear and ipad taking on a little bit of water. it would be nice to see better news. he think apple is still the leader and still luxury in the space. but i also think the truth is and we're beginning to see the age of the smartphone as the new product is probably a bit long in the tooth. we need to see them dominate what comes next, vr or augmented realty or something else. they are not yet a motorola, if

they don't come up with something in the next couple of months, we'll look back on the good old days. >> that would certainly be a stretch. guys, thank you. brian white and max woefl. apple's big event is monday. tif, tax increment financing, a town in utah that pulled itself back from the brink. and known for stunning visual and sound equipment, looking at the science and engineering that goes on in their labs, 100 plus of them. something you'll want to see and more importantly hear later on "the closing bell." ere's a lot s you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. 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.

tavi gevinson. trendsetter, tastemaker, and teenager. watson, you sound like a fan. millions look to you for advice. i know... i can't believe it. i am learning to analyze social media to spot trends and predict demand. sounds like you spend a lot of time online? i constantly absorb online content to follow shifts in pop culture. so... you're learning to think like a teenager? yes. how am i doing? well... uh...

we have a news alert. >> an update on the xpengs of two ceos from two different companies pepsi ceo and 2015, total compensation, 26.4 million, that's up from the 22.5 million she made in 2014. keep in mind shares of pepsi during the year of 2015 gaining 3.5%. let's switch focus to larry fink, blackrock the biggest investor with 4.6 trillion in assets, up 8%, 25.8 million versus the 23.9 million fink made in 2014. kelly? >> a fugitive suspected of the terror attacks in paris was captured in belgium today.

>> belgium's prime minister and french president francois hollande just wrapping up a big news conference moments ago confirmed details about today's raid in the plussels suburb of mollenbeek. among the headlines, authorities say two others in addition to abdeslam were taken into custody. hollande said he'll seek quick extradition of the paris suspect for interrogation. the french president warning the threat of terror is very high, add gs there are more people involved with the november attack than anyone previously thought. just before the news conference, dramatic video from belgium tv station vtm, which was released which appears to show an arrest from that particular raid as of now it's unclear whether the person you see there taken into custody was abdeslam or someone else. however that person was shot in the leg. the paris suspect had been on

the run from authorities since escaping capture last november at the french belgian border. they believe he was the driver of the car that tooked arm gunmen to the bataclan where 89 were killed. the white house said it is closely monitoring the situation and was in close contact with its counter terrorism partners in europe. belgium's prime minister tweeting a photo of him on the phone with president obama. and kelly, one of the last things the french president said, pretty chilly, the terror network is extremely large. it covers several countries. and that was how they closed out the news conference. so pretty chilling words there and they are going to continue looking. there's still one more suspect at large. back to you. >> wow. chilling indeed. thank you so much, sue herrera. >> facial recognition, that's what amazon is betting on in the latest way to pay. how secure is this technology?

that's when we come right back. stay tuned all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov

man 1: i came as fast as i man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros.

man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. . we talked about the hedge fund weakness, our next guest is sticking with them, president of

bria college in kentucky. invests 15% with hedge funds and joins us with more. when we spoke about how your endowment keeps college tuition free. this is a critical issue, how this 15% of your portfolio is doing. what's your view on hedge funds in light of recent performance here. >> thank you for welcoming me back. our view any time one of our positions is lagging is that's not a good thing but on the other hand those hedge funds were important to us in the recent down turn. they did less poorly than the other investments. >> are you referring to the o 8 '09 period. >> i was referring to the most recent, the last several months in our case while the whole market was down almost 10% our hedge funds were down only about 4. >> you don't have a problem paying, lyle, what kind of fees are we talking about here?

>>. >> i don't know the fees i'm talking about. that's how we look at things. >> and can we put it in context today, the market selling off and they are contributing what to your performance here? >> well, they actually held up better as i said than the rest of the market during december and january and as a result we were able to -- >> i was hoping that wouldn't happen. >> there were some technical difficulties. lyle, one more question, are you going to stick with hedge funds here going forwards? got any concerns in light of the recent performance and headlines, anything like that? >> no, we're long term investors and we have a sense that hedge funds play an important part in our portfolio, reducing volatility and hopefully achieving market returns.

and -- >> i think he made his point. we appreciate you joining us there. working on those technical difficulties. from enhanced sounds and colors and monitoring body temps in theaters, dolby is making sin mattic experiences feel real, including tvs that listen to you. >> hey -- ho! >> hello. >> so much more of my tour of the dolby labs is next. you're watching cnbc, first in business worldwide. those new glasses? they are. do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker.

how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab.

our cosmetics line was a hit. the orders were rushing in. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding fast. building 18 homes in 4 ½ months? that was a leap. but i knew i could rely on american express to help me buy those building materials. amex helped me buy the inventory i needed. our amex helped us fill the orders. just like that. another step on the journey.

will you be ready when growth presents itself? realize your buying power at open.com amazon filing a patent application for pay by selfie, to make purchasing safer by relying on images of themselves rather than a password. jason delray joins us from recode. how feasible is this? do you think it's going to work? >> i think it's definitely feasible. a couple of companies are working on it master card and alibaba's payment affiliate and amazon and other security companies. i think the main goal for amazon is a, making the buying experience on mobile as quick and easy as possible. if this is easier than typing in a pass word, it would do it. then b, making online shopping

safer at a time when a lot of fraud that was happening in brick and mortar stores is now coming online. >> i use the amazon app on my phone partly because it is so easy. once you log into the app it's actually very straight forward. i don't think i'd want to have to take a selfie frankly. is this for people who would be using it for a browser or something? >> i think there's a couple of pieces of context that are important. one is the original -- this originally serviced in 2012. this was before fingerprint technology on phones was common. and so there's a chance that they've moved past this and fingerprints the way to go. but i think there are other -- i think there are plenty of people who don't own a phone where you know, fingerprint is common. and then the other piece is there are people who are not regular amazon shoppers that

don't shop through the app. so perhaps there's a browser way for this to work. >> well, it's amazing to see it. it seems eventually biometrics will take over. it seems inevitable. but it is remarkable as well when you consider, we're so concerned about the fbi getting access to our information but we've nonetheless made this bargain, whether conscious of it or not, the companies have a tremendous amount of information about us and whether it's a biometric face or thumb print, we somehow seem to trust them and giving them more power and information than the government themselv them s themself. >> it's true, going on for a while. facebook is one big example. amazon has my payment information, my address, my history of my life essentially. so i don't see that being a huge hurdle here if they wanted to do it. another potential application is -- i'm covering another patent application a year ago

involving physical stores related to amazon and the idea you would walk out of a store potentially an amazon store with an item without stopping to pay at a checkout counter. there was some mention of cameras in that, which is sounds even more creepier than this. but it's something i'm keeping sort of in the back of my mind when i talk to my sources over there and former amazon employees. >> jason, maybe to push back a little bit on this idea it is really so ominous, any time you're giving a password, you're essentially authentic ating information you've already given to them, correct? you're saying yes, this in fact is me so they are going to match my selfie to something on file? >> exactly. you're right. i wouldn't argue with that. >> well, whether it's used in stores or on phones what here -- the angle you take a selfie, the picture can come out very different, a lot of chin or forehead in there. jason, thanks very much.

it's not just amazon using cutting edge technology, jackie chan cinema adding dolby theater screens in their theaters, i took a closer look at the science behind sight and sound. >> we've brought to life dolb vision projection system, which creates levels of contrast never experienced. >> people are paying upwards of $20 a ticket, do you feel they'll pay even more for your experience? >> if you invest in the quality of the experience, it will bring people back to the cinema. it's an amazing experience xbl p of us watching movies and videos on our phones. the color quality isn't that great. are you going to try to change that too? >> absolutely. we're doing that today on the sound side. we have a number of partners like lg, lenovo and amazon incorporating our technologies

and see that as an continued area of focus and growth. >> i'm excited to try it out myself. >> we're entering the studio, our laser lab and we're going to introduce you to the magic behind dolby cinema. this is a 500 pound door. no one can escape or get in. we're going to do a side by side. you can see blacks become truly black and we still have the ability to do those bright highlights. so you can imagine a star wars scene in space where you've got the deep, deep blacks and still the full brightness -- >> when i'm watching movies i can kind of see the screen i'm watching it on. >> that's right. >> that was not the case when you were showing us most things, the fire blast or the text, it was more hilike watching it -- we've been doing demonstrations with augmented reality.

is it going to be mainly for lasers or move on to different screens? >> wherever there's an audio/visual experience, we believe we can make it better. >> on the left, this is what you're working on? >> that's right. >> this is bringing high contrast experience to the living room. >> you have some partners in terms of now all of these tv makers trying to incorporate this technology? >> absolutely. in fact, vizio is shipping a dolby vision television today? >> how much does it cost? >> that tv is about $4,000. >> welcome to our physiology lab. >> what does that mean? >> wait a minute. you can see us there. our mission is to create these really compelling experiences. that all starts with the science of sight and sound. for us that literally starts with understanding how the brain processes sight and sound. >> this is the kind of thing when people are watching the revenant and saying they felt so

cold, that the fisology of what we're talking about? >> absolutely. >> on your head we put an eg sensor and we have 32 channels that are able to capture small neural responses. we have on your hand you're wearing a sensor that allows us to capture your heart rate. we can capture small changes in the conductance of your sweat glands and that tells us about changes in the excitement that you're experiencing when you're watching. >> we'll take these technologies and sit side by side with the artist and directors and sound designers and we generally don't wire them up like this. but we know we're on to something when they say, wow, i can shoot shots and i've ways to tell my story i did not have before. >> kelly, we're on the floor dedicated to our broadcast team. and the art installation on this floor is an interactive one.

you know, you clap or make noise and you'll see that the monitors respond and it's just meant -- >> the tvs are listening to us? hey, ho! >> i know this is an art exhibit but obviously if it can detect noise and respond to it, it can use that in a host of other ways. >> it's meant to be interactive and helps you think about how sight and sound affects your life. >> a lot of us haven't thought about dolby since the surround system system days. what's interesting the company realized and not just about sound but vision, contrast is a big thing. you can buy a tv with 4k technology and focus on the contrast element of the images they are working on the outcome is vastly different as you can even see through the shouts we were taking. >> they have to preserve the specialness or just kind of

raise the bar constantly. i remember when surround sound was a thing and in theaters, superman in the 70s. >> each person is visiting the cinema less and hanging over everything is virtual reality. why do you need to go see all of those screens when you can sit at home with a set on your head? >> i think the point is they want you to still go to the theater and put the set on your head. as long as there's innovation and technology he's making the case that the cutting edge place to experience that is still perhaps in a theater. i don't know if that's true but there might be an argument that the image quality and whole experience, you probably aren't going to have the equipment at home you might be able to access in a place like that. certainly something to watch. you can check out much more on the spark cnbc.com/thespark. one utah town was once on the brink of desolation, which

ones are taking advantage of the town's successful renaissance when we come right back. on our disciplined approach to find long term value. so wherever your retirement journey takes you, we can help you reach your goals. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence. when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. great, that's what i said. so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business.

there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. 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. as first day of spring approaches we head to ogden

utah, they have been springing back thanks to patient cooperative and careful reinvestment by the government and business and investors. mary thompson's joins us from union station. what do you find, mary? >> reporter: i'm standing outside standing outside of union station because it was railroads that used to be the engine that drove ogden's economy, an economy that had fallen into disrepair until 16 years ago when the city embarked upon renaissance plan aimed at bringing businesses back to ogden and ogden back from the brink. in the shadow. wasatch mountains, one of ogden, utah's latest project is under construction. >> this is what we call a lifestyle park. >> reporter: known as the business exchange the home of the city's former stockyard will soon house some of its former 30 outdoor recreation firms, firms like the makers of bike parts and products. the park is part of a decades long plan to revive ogden which

relies and for a set times, schools and other taxing entries in the project's district give up taxes derived from any increases in property values and the money used for improvements like widening roads and removing blight all in the aim of making the location better for business. >> the school district benefits and the county benefits and we benefit. >> reporter: among the benefits, an unemployment rate of just over 4% and a 20% increase in the city's median income since 2000. now it's also earned ogden accolades including being named one of "forbes" best place for businesses and careers. companies agree they are among the businesses that have operations here in ogden. >> way cheaper than california. mar he, did you get to try a

fat-fire bike? >> reporter: i wanted to because the trails running alongside the wasatch mountains are beautiful. >> the setting is stunning. >> we've got a reporter on the ground. what's the word on the presidential primary there? mitt romney waded into the battle and said he was supporting trutz. what do you hear? >> reporter: you know, people are pretty quiet about their political views, at least the people i've been speaking to. i think a lot of people are a little bit surprised at what we're seeing at this time. that's what i've heard from some of the people that i've spoken to. >> yeah. >> reporter: but i didn't get the sense one way or another which way they are leaning but we do know it tends to lean republican, utah does. >> i was going to say probably it's staying mum is good for business. mary thompson out in ogden. try a fat tire bike. never mind a computer or phone. what gadget the fbi is saying is increasingly vulnerable to hacking when we come back. arti. arti. 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. together we can outthink the limits of what's possible. welcome to the cognitive era.

steve, other than making i'm here atme move stuff,rade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

welcome back. well, that smart car may seem convenient, but the fbi and nits are warning carmakers and vehicles are at increased risk of hacking. hackers would be able to gain control of functions like starting the engine, unlocking the doors, hitting the brakes. remember, in 2014 "wired"

magazine demonstrated a car hack using a jeep cherokee. the point being, making the point earlier, the more we hand over the technology the more vulnerable that makes us. >> it's pretty amazing, and it's going to be so fun and cool for some 16-year-olds a few years in the future to really do this well. it's not like hacking a coffee-maker or a pacemaker which people have tried to do as well, but this is going to be a serious issue. why do you need to break into a car if you can put a few codes into your computer? >> that's why we need to take the mike santolli approach, staying away from social feedia. >> from facebook. >> and the dumb car. >> the smart part of it is the problem. i didn't even know this is unauthorized surveillance. my 8-year-old took this of me. i was driving my 12-year-old volvo. what i like about this, might be the last model of car that came standard, when i clicked over 125,000 miles with a cassette player. yes, it has a cd player and regular stereo and has a cassette player. >> convinced there's no

electronics in that volvo. >> i think it's an operating system beyond the reach of today's hackers. >> can we see a premium for dumb cars versus smart ones? >> see it being the turntable, right, not in the main, but there will be a certain connoisseur's approach to traveling? >> by the way, opening up cuba. they make after-market parts for all these 1950s american car and people are excited because it increases the capacity for a lot of old cars. >> back to the future but just the old part. gains five straight weeks in the market which we haven't seen since the market bottoms. we've got key housing numbers on tap. new and existing home sales and the housing index from jan and reports from nike, cabee toys and restoration hardware. perhaps some positive attention from the sneaker that can tie itself. we'll see if anybody hacks that, mike. >> really become a tell on the

global consumer and, of course, it's really been a big howard. the s&p saying it's the one-year anniversary when apple replaced at&t in the dow jones industrial average. the swap has cost the dow 187 points because apple down, at&t up. >> i sit on that committee. >> come on, dennis. >> i don't blame you whatsoever for doing it. >> but i think one thing to keep in mind, of course, is the dollar and nike very sensitive to where the dollar trades. it's been coming down so that helps big sort of exporting companies like nike a lot. >> probably the headline that should be the headline. talking about the market. we're talking about oil and the flip side to a lot of these trades has been the dollar. 95 is the dollar index right now. it's fallen by several percentage points from its recent highs. that's a question for a lot of people. >> the main driver, kind of ties all different trades together, commodities and fixed interest and everything. when the japanese yen rallies that's not good for risky assets or good for stocks that. relationship has come apart a little bit recently.

>> the thing next week that i'm paying most attention to is oil. energy overall, pretty strong rally this week. can that be sustained? might we see actual cuts or evidence of cuts? that's going to weigh largely on the markets, too. >> the housing data which we mentioned we have a lot on tap, i can't remember the last time that was really moving the market one way or the other. the housing sector has been left as kind of the narrative of the past. oil becoming the key to the future. the supply demand figures for there, the rig counts being down as much as they are, and questions of how quickly they will come back online. >> a lot of people don't have enough money to bring that supply back online. a wave of 3wru79ies will move through the emp sector that will happen even more and whether it's iran, russia, saudi arabia, the opec guys, how they are going to play this game. saudi arabia is setting up for a long haul and this right now, oil is moving higher. >> yeah. mike? >> i totally agreed, and i think that because stocks yes, today deed a little bit, if you're discussing the bold case in stocks after a 12% move, have

you to be comfortable with the oil chart which is up basically 35%, 40% in a month. >> like a shadow. still can't shake it one way or the other. guys, thanks so much for joining me. have a good weekend. that does it for us on "closing bell." "fast money" begins right now. "fast money" does start right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are tim seymour, steve grasso, brian kelly and guy adami. tonight on "fast" apple is quietly doing something very interesting ahead of its major announcement monday. we'll tell you what it is and how you can profit from the big event. plus, valeant ceo has a simple message for his employees. we ain't broke. did he just break one of the oldest rules in the book? we'll explain and how would you like to buy shares of mcdonald's for less than a cost of a happy meal? how to do that, first markets and historic week for stocks, both the dow and s&p closing out in the green for 2016. on track for the