>> and within the s&p 500 it's worth noting health care is up a percent. interesting moves within a relatively quiet day. >> all right, folks, thanks for watching "power lunch". >> "closing bell" will pick up our coverage and it begins right now. >> welcome to our continuing coverage. >> a muted market reaction to the events in europe today. we'll be taking you live to brus sels shortly but first let's go to our sue herrera for the latest developments. >> thank you. a belgian prosecutor says police raids are happening around the country after two men are suspected of staging a suicide bombing at the brussels airport, a third person involved fled. prosecutors say a new explosive device containing nails was found in a raid just a short time ago. an isis flag and chemicals were also found. the state department saying no

u.s. citizens were known to have been killed. but a number of them have been injured. at least 31 people were killed and nearly 200 wounded in the two airport bombings and another in the brussels subway system. the islamic state claiming responsibility for the attacks. in a statement it said there will be black days ahead for the aggression against it. u.s. officials say they believe that claim is authentic. the republican presidential candidate john kasich speaking out on the attacks, criticizing president obama for not returning to washington from cuba. >> and had i been president, i would have cut short my visit and flown home and i would have conducted calls jointly with heads of state and gone to assemble teams of people, intelligence experts who can take a look at this serious breaches that we have in

intelligence. >> showing solidarity, the eiffel tower lit up at dusk bathed in red and white lights and black and gold. the latest on the attacks for you, that is the belgian flag depicted on the eiffel tower. we'll have updates on the situation throughout the afternoon. we will send it back down to you guys. >> thank you. let's take everybody live to brussels. hadley? >> reporter: tonight this is a city in lockdown. you have trains and planes and metro still shut down. we're a few steps from the metro station. 20 killed and 130 were wounded and we're just down the hill from the epicenter of european politics, where the eu parliament and council meet. this is an area which is really the beating heart of europe and clearly these were coordinated attacks bent on taking this out. interestingly enough, if you look around what's happening

here. this is a cordoned off area. we've seen a heightened security presence here. even to get here today was very difficult. we had to fly and pass over the border between the netherlands and belgium. we did see a heightened security presence along the roadway and a lot of traffic. this is a nation that's not only in mourning but a nation that is in a heightened state of alert. they've taken the terror alert to number four and the prime minister saying not only is this a very dark day for his country but also that there will be three days of national mourning beginning tomorrow. >> hadley, you reported for us of course and been on the ground there late last year. what's the sense of the reaction in brussels relative to what you experienced last year? >>. >> reporter: we have to remember that this is the second attack in four months in a european capital. there's a great sense of

insecurity right now. certainly among these leaders you have to remember this is not just center of european politics but also where nato is and place where there are multiple ambassadors and so many ambassadors as much as perhaps in new york for the united nations. this does feel like the beating heart of europe. right now this is a city with a heightened terror alert in lockdown. with security officials running here and there to talk to counterparts, you have a major language barrier. a great deal of insecurity in the country's capital. >> thank you very much. various european leaders have been coming out in support. francois hollande saying though the attacks are in brussels, all of europe has been hit and added that europe must be careful to seek unity. angela merkel said the german cabinet would convene on wednesday to discuss the implications of the attacks on brussels and germany will work

in every way with the belgian security services to find and identify and punish the perpetrators of today's crimes. the british prime minister, david cameron condemned attacks describing them as appalling and savage. he expressed a desire for europe to stand together. he said the uk faced aid real terror threat itself and police presence was being increased at major transport hubs but that the terror threat level was not being immediately elevated from the current level of severe. >> let's bring in further this discussion former cia analyst and cnbc contributor and robert less could you xi, former secretary with the department of homeland security. we're used to talking to you about middle east insecurity and how it affects oil. we're talking about european terrorists and talking about european instability now. this is chronic and not a one-off situation. >> these are nationals.

they are second and third generation immigrants. if you look at european countries, france has sent thousands of fighters to iraq and syria. on a per capita basis, no european country has sent more than brussels. >> let me jump in. president obama making additional comments on the terrorist attacks. >> john? >> just as the president spoke this morning before the address to the cuban people in havana, he just spoke to espn about the attacks while taking in a baseball game with raul castro, the cuban president. here's the president's message. >> this is just one more example of why the entire world has to unite against these terrorists and that the notion that any political agenda would justify the killing of innocent people like this is something that's beyond the pale. we're going to continue with the

over 60 nations that are founding isil and go after them. our thoughts and prayers are with those who have been lost. >> in attending the baseball game where he just made the comments, the president was ignoring critics who said he should cut short the trip to cuba and come back. the president just now in further remarks said he's not determined not to let terrorists disrupt the american way of life. they can't defeat us and this is consistent with his message of not overreacting and panicking in response to attacks like this. >> will be for fod der for krit he cans who said he should have left, not sitting at a baseball game in a pair of sunglasses? >> exactly right. john kasich said that and that was what the president was responding to by saying they can't defeat us, not going to make us panic and yoifr

reoverreact. >> any additional thoughts? >> i think this might feel further criticism that president obama paid sufficient attention to the isis threat all along, calling it a jv team or response to syria and problems in iraq. this will play into the political discussion about the u.s. terrorism response. >> robert, also with us former homeland security assistant secretary. your take on the fact that the president hasn't flown home? >> i mean, the president has a great security apparatus here, they've been working at this more a long time. the president's presence here in the united states during this incident, i frankly think is immaterial. the leadership here, knowing these professionals, we're talking about professional law enforcement and professional security representatives in the united states and what they need to be doing. the president doesn't need to be directing them. >> do you have the same confidence in professional security officers in belgium, across europe who now have too deal with whether there's copy cat attacks or similar

sympathizer who see the vulnerability of major european capitals. >> i worked with a lot of law enforcement agencies in particular and they are highly professional. we do a lot of cross training between europeans both in nepal, country to country exchanges, a lot of good training that goes on. i agree they are fractionalized in belgium and may be an int intelligence issue but in terms of law enforcement and operational security aspects, they know what they are doing. this is a tough type of attack to prevent and detection and prevention are key components for law enforcement. i think one of the things we saw, the outcome of this event today, i'm speculating but quite possibly is a result of fact that they were able to make the arrest four days ago and these operatives were concerned about being active themself. they go into operational mode. it's very difficult to be able to prevent all of these types of

incidents. >> certainly terrorists have to be lucky once but there's been tremendous criticism for not doing enough to deal with home grown extremism and concerns about the fact the lack of cooperation between european intelligence services and suspects can be listed differently so you don't know if they are on a watch list. i think there are lots of loopholes that need to be closed. it's an ongoing challenge. >> thank you very much for joining us. >> right up next, what air travelers will be thinking and what they need to know in the wake of the terror attacks in belgium. we'll go live to one of the busiest airports in the u.s. and speak with two security experts. later, mohamed elerian gives his opinion on the reaction from the markets. ear watching cnbc, first in business worldwide.

welcome back, checking on major airline and travel stocks following the brussels attacks, delta airlines down 1.5%. bigger declines for priceline

down 2.5. we know in turkey, for example, in the spat of many terrorist attacks, their summer bookings are down 40%. brussels being less of a tourism destination but looking at tourist flows and business. >> we saw likes of easy jets, european airlines following in european trade as well. many on edge following the deadly terror attacks and mary, what's the sense on the ground there? >> reporter: well, of course, as you would expect, we're seeing heightened security here at newark liberty as you're seeing at major airports across the country in the wake of those terrorist attacks in belgium. but we spoke with a number of travelers, most of whom were traveling domestically and said the attacks are having no impact on domestic travel plans but if they were travel ago broad, they might give it a second thought. >> what happened today wouldn't change my plans. >> i don't think about it.

if it's your time, it's your time. that's how i look at it. >> now, in addition to the added security you're seeing at airports, there's added security on amtrak trains and metro stations in the major cities in the u.s. there have been 439 cancel selgss in and out of brussels and united and delta are among those who rerouted passengers. american airlines offering refunds to clients scheduled to go to brussels as well. on the hotel side, air bnb asking hosts if a client is in an emergency situation to let the client stay there for free if necessary. and marriott which has four properties in brussels is waiving cancellation fees if a client has to indeed cancel their reservation because of this. what's surprising is travelers in the u.s. are getting more used to these types of attacks and how it might impact them but

they are much calmer now then they would have been a couple of years ago in large part because of the frequency of these attacks we're seeing. back to you. >> let's talk more about airport security with anthony roman. also a licensed pilot. also with us, ceo of ar challen challenges, former consultant to the israeli airport authority. are we doing enough in terms of airport safety here? >>. >> who are you asking? >> go ahead, sir. >> yes, i think there is a misunderstanding in the united states what you do is not airport security. you're doing aviation security via the psa. the airports are usually secured by either the local police or

some strength ever fbi. but the biggest problem is you're still looking for luggage and not looking for -- one of the biggest problem to train police people and other tsa agents to really look for suspicious behavior and not going through the bottles in the security of baggage. >> is that a fair point because attacks we saw this morning in brussels, on the land side of the airport, not on the air side. there's been no security checks up to that point. what can authorities whenever they are in the world do when they haven't reached security boupd rry yet? >> he's spot on. we're only paying attention to a small segment of the risk. the air side risk where the fence and electronic security measures are taken to protect the airplanes and runway and passengers boarding from the air side is really a complete failure. penetrations are happening every

month. so it's really not working out very well. on the passenger terminal side, cars are still allowed to pull up to the curb. you can have a propane bomb and you can have a fertilizer bomb. it would take out the entire building. there are high concentrations of large numbers of people and it's a real problem they are not properly protected. >> those con tragss reflect those being dropped off to catch a flight. what is the response you're recommending here that would make those points safer and how much would that affect people's travel? >> if the logistics are prepared properly and roadways are changed just a little bit and there are pools of dropoff areas away from terminals, it would be better. vehicles should not be allowed within the blast zone. >> rafi, what quality are the u.s. airport security checks versus some others in the world? of course the tough point i suppose they have many were built decades ago as opposed to the new airports in the likes of

dubai and singapore. >> i don't think that the buildings have anything to do with security. the security should be as follows. if the target is moving, you have to move with the target and nobody is doing this. so the best thing to do is follow the israeli program, which is the security circle. you start at the entrance to the airport and while everybody is walking towards the terminal and doing stuff inside the terminal, he has to walk through several security to see the behavior analysis of those people and we in israel can detect suicide bombers almost 100%. so this is a change of a disk in the thinking of the security agencies in the united states and also in europe. >> anthony, coming back to attacks earlier today, why do you think brussels was the target? one would think there are more

high profile potential targets heath row airport, perhaps jfk. why have they gone for brussels? >> they look for easy targets and belgium is an easy target. the molenbeek area is a hot bed of radical activity and no go zone for police enmany government authorities. in addition to that, their intelligence services have low penetration in terms of trying to get information from the local community relative to terror cells. so that's where the problem starts. >> it goes back to a point you were making as well. by the way, rafi, when you talk about how we need to focus on the people and not necessarily the buildings, what additional kinds of steps has israel taken in order to be more effective in this? do you think other reports or other security operations could adopt as well? >> well, as i said, you have to adapt a security circle process and then you have to look at the

people who are moving at the airport and patterns of behavior before you even go through the luggage if you need to go through the luggage of people, because the most important thing in security is the detecting the intent and not the bottles or something else that is in the luggage itself. >> other countries we've seen airport personnel kplis it here. numerous levels to keep an eye on. thank you both. >> the dow is down around about 42 points, about a quarter percent and s&p down a little less than that, .1%. >> we'll keep an eye on it with 45 minutes to go. isis has claimed responsibility for the deadly brussels attacks, we'll get reaction from two medal of honor recipients and expert on islamic state who wrote multiple books on the terrorist organization coming up.

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welcome back, a belgian prosecutor, authorities say this surveillance photo shows the suspects in the bombings. the names have not been released. isis claimed responsibility for the attack that killed 31 at the airport and subway.

this coming in where an isis flag and nail bomb were recently discovered by police. >> muted reaction to the brussels attacks on wall street. we're looking at just below flat, quarter percent decline for the dow. it follows a third of a percent decline for the stocks europe 50 in earlier trade. >> checking on the top business headlines, the fbi's case against apple taking a significant turn. the department of justice saying late yesterday it may not need apple's help to unlock an iphone and asked a judge to cancel a court hearing scheduled for today say teenager would task another way to access the information on the phone apple shares up 1%. and john sculley will talk about how he sees the place playing out for apple. nike reporting third quarter earnings, looking at 48 cents a share. we'll bring you the sports

apparel giants results the moment they hit the tape along with instant analysis. >> our special coverage continues, we'll speak with two medal of honor recipients about the fight against terror and the impact these attacks could have on the european union. that's coming up next. [alarm beeps] ♪

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welcome back, here's a live look at brussels this hour where mourners are beginning to gather. lighting candles as the twilight darkens to commemorate the deadly attacks this morning. >> our special coverage continues and let's get to sue herrera for the latest developments. >> nbc news citing counterterrorism official says three suitcases were used in the airport attacks. two detonated by the terrorist and the third did not go off and disposed of by belgian authorities. 200 wounded in the two airport bombings and another in the brussels subway system. islamic state claiming responsibility for the attacks. in a statement it said there will be black days ahead for the aggression against it and

officials believe the claim is authentic. u.s. wireless carriers are offering free calls and texts from the u.s. to belgium. verizon and sprint and at&t have announced customers in the u.s. can call and text numbers in belgium for free for a number of days. european monuments were lit up for the belgian people. the eiffel tower and fountain among others bathed in the colors of the belgian flag. i'll be back with another update. we continue to update the situation throughout the evening on cnbc, back to you guys. >> sue, we're now seeing pictures of people gathering in brussels to mourn for what happened this morning. it does not seem at all things are getting back to normal. airports will be closed for another day. do we know what the situation is with mass transit. >> mass transit except for the main train station, the other

train stations around brussels have opened up about 11:00 a.m. eastern time today, kelly. and things are not back to normal. they won't be because the one suspect is still at large. there's a lot of speculation that in the intelligence community that perhaps he was designed not to die at the airport bu to help pull off bombings and then go on to do other attacks. that is what precipitated the raids being planned by belgian authorities and went house to house in various neighborhoods and did find another explosive device, a bomb flanted with nails and chemicals and islamic flag. so belgian authorities are saying that the risk is still extremely high. the country has been on lockdown so it is far from over at this point, kelly. >> we had lots of comments of solidarity and support from various european leaders

throughout the day. any news of any potential concerted action in retaliation yet? >> president obama -- and we'll be covering this as it continues to develop, president obama said the coalition will continue to pound isil, his word for isis, and that they will not be det deterred from that. i know that french authorities are deploying to brussels and the french prime minister vowed as belgians did during the paris attacks to lend any assistance to try and hunt down the terrorists. the worry is that now that salah abdeslam has been captured. he apparently was talk starting to talk investigators and interrogators, there may be more attacks planned and they may be moving those attacks up if indeed there are attacks that are eminent. the french pledged support to the belgian people. >> thank you very much. >> you're welcome. >> we're so pleased to be joined

here by two medal of honor recipients about to ring the closing bell as part of a group of 29 of the 74 i believe living recipients of the military's highest honor. thank you both for joining us. we want to ask you in particular, colonel, what are your thoughts about the violence we're witnessing again in europe this morning? >> well, i think it's not the first and won't be the last. they've got a peculiar security problem that's exacerbated by a lack of internal borders in the eu. i one of the sad things is it's libel to drive the brexit maybe in the wrong direction because if britain leaves, because everybody gets agitated about security, it's not going to be good for britain and won't be good for the united states, our biggest trading partners are in europe. very bad news indeed all the way around. >> major general brady, ach the

paris attacks we saw french bombing of syria and britain joining that air attack. are we likely to see more military action in the weeks ahead? >> i doubt it. we move so slowly on these kind of things. but i really had a great experience this morning. we were on the street and a total stranger came up to me and said i'm from belgium. would you let me take a picture of you holding a heart in your hand, me and my grandson? he wanted the american people to send a signal to the people there in belgium. there's nothing going to happen as far as military action on our part, i don't think. there's never anything going to happen as far as defeating terrorists until we teach the children we are not the great -- and in the meantime all you do is just kill them, it's that simple. >> very different philosophical views what america should do

here, when it comes to what you're hearing, does it seem we have our arms around the problem? either as america or western response here? >> the first thing to keep in mind, we're both old enough to remember this, wt candidates say in public on the way to the white house is not anything what they do when they get into the white house. that's the first thing. the second thing, i think the u.s. has to redouble efforts to get actionable intelligence to share information and get information shared to it by others who want to defeat isis. unless and until we start sharing information across borders, i think we're going to continue. and europe will continue to have big problems. >> major general, does the very fact we're in the final months of a presidency weaken the ability of the u.s. to respond if it faces similar attacks. >> i hope not. how long ago was 9/11? what have we done since 9/11? you've got a bunch of guys running around and shooting rifles in the air and riding pickup trucks and we can't handle them.

come on? we haven't done anything. the candidates will say what they need to say but we need leadership and we need to decide we're going to get this over with. 16 years or whatever it is since these guys in this city killed 3,000 people and we have done nothing, still killing people, that's insane. >> the response in large part, whether it's donald trump or younger folks in this country, of either political stripe, is isolationist one. both received yours in 1969, does that strain of american politics trouble you? >> if it was not our problem that would be fine. it is our problem. these people -- they hate us and sooner or later they will be here doing the same thing they are doing over there. they are doing it over there because as jack says, the lack of security and no border system. they'll be here. they will be here unless we go over there and do something about it. >> i want to add what pat is

talking about is come place entcy. we have it here but they have it in europe as well and it is extremely dangerous in any security situation. >> gentlemen, thank you both for joining us. we'll let you get ready to ring the closing bell. jack jacobs and general brady. we expect it to be quite a scene and hear a lot of applause as do so. >> coming up, we have about 30 minutes to go. we'll see whether markets can shake off the deadly attacks in europe. dow still down 27 points this hour. s&p down about a point. the vix, that volatility gauge is up a little bit and small caps are down as well. >> we'll be talking to an isis expert about what his take is on these attacks in brussels this morning. don't go anywhere. [woodworker] i live in the fine details.

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>> isis claiming responsibility for the belgium attacks. for more on how social media plays into it, let's bring in the co-author of "isis, the

state of terror." when you look at the attacks this morning, does this come right out of the playbook? >> i think it does. what we've seen is that the islamic state is much more focused on attacks that achievable. attacks like the paris attacks and today's attacks have a fair number of moving parts but it's not the same as trying to hijack an airliner or create an invisible bomb. >> our earliest guests suggested how vulnerable these particular points in brussels were. i guess in suggesting that the response shouldn't necessarily be to beef up the physical airports or transportation systems so much as focus on try to identify and stop these guys. how possible is that in an age when they are increasingly used social media? >> it's more possible than today's events would seem to suggest.

you know, it's -- this cell in belgium has been on the radar since january really of 2015. and it's not really clear to me how these guys are still out there running around. you know, it's a fairly large operation. they have a tremendous amount of intelligence and collected from the paris attacks which included suggestions they didn't use encrypted communications but more commonly used techniques by criminals, like burner phones. >> it seems in the last 12 months or so, europe has become a much more prominent target for these types of attacks. what's your take on why that is? >> europe is what easier for them to get to. there are a lot of land crossings and border control is kind of erratic depending on where you are in europe. and of course, you know, europe has provided far more foreign fighters to isis than the united states has. so you know, there's really just -- they have a tremendous number of passport holders.

with all of the concern about refugees that a lot of politicians expressed really, they have thousands of european passport holders who can walk into an airport and fly in. >> despite increased vigilance, we haven't seen the specific terror threat level increased in the likes of the uk and u.s. does that sound right to you? >> i think that we have to watch these techniques and look out for reputation. in the united states i think it's a much more difficult operating environment for isis. but i don't think we should be kplasant. it is possible they could try and carry off a operation similar to these. the uk would probably have more of a risk than we do because they've provided more foreign fighters than we have. these kinds of attacks are likely to continue as long as the islamic state continues and probably beyond their presence on the ground. >> some have suggested that because there are military

operations moving against some of islamic state's holdouts over the last couple of years in iraq and in syria, they are now trying intentionally to stage larger scale attacks in other places almost like sparks being thrown off a dying flame. is the organization more or less -- stronger or weaker today than it would have been last year? >> so, isis the state and insurgency are weaker than they used to be but that makes isis the terrorist organization stronger. we saw this with al shab ab, captured a significant amount of territory in somalia and requires a lot of resources to hold territory and govern in that territory. when you start to lose your grip on the territory, that frees up hundreds and thousands of people who can then be terrorists. if you think about al kid on 9/11, the actual core al qaeda organization was just a few hundred people.

isis is probably about 30,000 people now. so you know, we're really talking about you know, a catch 22. i mean, the state has to be degraded in order to choke off the recruitment pitch. but once the state is degraded or once they lose that territory, we're going to face a very large terrorist threat. >> what's your take? it's a debate going on the last three or four years even. does there need to be military ground troops deployed in syria and iraq in order to solve this issue or does that only an tag nies the issue? >> somebody has to deploy ground troops in syria and iraq, whether it should be us or not is an open question. i would not favor that approach. i think that you know, the course that we've taken in terms of trying to find a middle ground where we carry out some military operations without embarking on a full scale invasion had obvious appeal to policy makers and exposes us to a lot of risk of terrorism

without necessarily getting the job done. the containment strategy we have right now can work. the problem is we don't know how long it's going to take. it could take five weeks or five years. it depends on the internal strength of isis. >> in the u.s. we had a couple of trials against islamic state sympathizers or would be fighters and in both cases evidence found on computers and that kind ever thing. the one case found him guilty and other case it was a little more obvious that there was sympathy there. what do you do as law enforcement to find these individuals and intercept them aside from perhaps the fbi tactic of trying to lure people and reach out and lure them into situations where they then reveal themselves or reveal sympathies. what can you do right now again going back to the debate and idea about encryption, to penetrate networks and find out where people might be? >> i think the debate about

encryption is somewhat overstated. it seems to me that, a lot of these cases, almost all of these cases you see people pop their heads up in open source and give thre clues. encryption is a serious issue but i'm not sure fixing the encryption problem is the government would call it is necessarily a fix all for the overall problem. i think we need to disrupt the recruitment networks and recruitment networks are the most visible part of isis, people on there urging people to carry out attacks and recruiting people to go fight. you can target those. >> thank you so much for joining us. >> we've got about 30 minutes to go until the closing bell, the s&p is base beingally flat and dow is down fractionally, about a 35-point decline. relatively muted response to attacks on wall street. we've got a live -- new report on the impact on terrorism on the markets coming up next.

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we've got a few minutes left in the market, the dow is down a

quarter percent. the chief economist at chase put out a study analyzing the impact of terrorist attacks on the economy. your main takeaway today, the sell-off is relatively muted. >> i think generally the sell-off initially when you have terror attacks the london bombings and spanish bombings or even the paris bombings, initially the sell-off is muted but over time you start to see a little bit of impact. you've got a significant impact three months later, more than 7% decline. >> let me mention people wondering what the applause is, 29 medal of honor recipients are making their way up to the platform to ring the closing bell today. this marks the 14th annual congressional medal of honor foundation circle of honor dinner. there's about 74 they say -- 76 living medal of honor recipients, the number of course continues to decline over the years. we're looking at a number of

those still alive today who have received the military's highest honor working through the trading floor. >> absolutely right. huge congratulations to them. it's amazing to have them surrounding us. anthony, i suppose as we continue to look at what the market impact of this is, the european trade almost is muted as the u.s. trade. did that surprise you? >> it's not surprising but as more time passes by, you may see a bigger impact. one thing is concern, when you look at consumer confidence in the united states, three, six, 12 months later, you do see a one, two, almost a two-point decline in consumer confidence. given that 90% of growth in the last year in real gdp has been consumer spending, that's something to pay attention to. >> the big of the reaction maybe against the british pound as well. >> if you get brexit, that raises a lot of concerns for the rest of europe and they are watching that closely.

>> i would add the pound being off a percent or more, not at the lows of the last few weeks. keep that in mind. what about commodities, oil prices seems to never look at geopolitical concerns. >> right now we know that equity market in oil are basically joined at the hip. another study i did when price of oil, between 20 and $50 a barrel. almost a 58% positive correlation. when you start to move above that and we're getting closer, then that correlation actually goes away and starts to become negative. especially as you become much higher than that. >> what lessons do you draw as we watch market activity. >> i think the market is trying to decipher whether it is a one off attack or beginning of many more. as more evidence comes in, the market will react accordingly. >> pleasure as always. >> on national medal of honor

day -- >> let's go back so sue herrera with the late he have developments. >> some perspective, u.s. intelligence officials telling nbc news the brus sels attacks this morning were most likely carried out by the same group that conducted the paris attacks in november. in addition, intelligence officials also think this terror group carried out the attempted attack on the train from amsterdam to paris last august. that attack was foiled by u.s. servicemen and failed attack at the concert hall in suburban paris last april. the plot to terrorize brussels was most likely in motion but it may have been been sped up after authorities got abdeslam. he told officials he formed another cell and had other attacks planned. in a testament to the cell's experience with suicide and vehicle bombs, the terrorists have managed to use tapt bombs

without blowing themselves up during an attack. they are notoriously unstable and made with household chemicals, that's why as i turn it back to you, they are doing the house to house raid and fact they found another explosive device and chemicals has belgian officials worried there were more attacks planned. >> sue, thank you very much for that. moments to go until the close, we're looking at a percentage point decline in the dow. we have matthew cheslock and bob pisani. >> muted indeed. what's amazing, it's been muted for the last week and a half. moved less than 1% on a daily basis for seven days on a row. that's in big contrast to the volatility in january and all of february virtually. what this says, the market is moving side ways and digesting the gains we had, february 11th

up through a week and a half ago. the s&p moved 10%. a lot of people said that was very fast. we needed to consolidate or maybe even pull back as long as we keep moving sideways, that's a very bullish situation for the overall marktsz and means we're digesting gains and could set up the potential and oil staying at $40, very supportive for the markets. >> are you surprised oil staying at that level? >> absolutely. one thing that we've looked at is gold. gold hads has had a big rally, it's not just oil but it's gold side of the equation. this con solid dags is very impressive. anticipated the market being down on the opening. >> the consolidation in the last couple of weeks relative to the one post loss summer sell-off last autumn time. how do you rate the two? we bounced back quickly on both occasions. >> we did, but it's sector bounces, large caps are back in surprisingly well and russell

has been weaker today maybe. it's one thing we've noticed that the people are back buying risk appetite and that's important for the market. if we take a leg higher -- >> we have oil improving and generally better economic news, choppy, we have the jobs market clearly still improving a bit. i think we have a little bit more bullish trend overall. i can't emphasize enough oil because we have lower supply and slightly increasing demand. gasoline demand for the summer is going to be very strong. those are at least supportive for the current price of oil, maybe not another bull market in oil but certainly supportive for the current price. >> oil's recovery from low levels, does that start to weigh a little bit on sentiment towards the transport sector which itself clearly suffering today? >> sure, we've seen a tremendous rally in the transport sector. a lot of people were discounting oil. there were plenty of people in the early part of february who said oil was going to stay at 20

to $30 and that's now looking increasingly less likely. today saudi arabia would consider simply keeping production at its current levels even if iran did not go along with a production halt essentially. that's a very, very positive sentiment. they haven't expressed before and oil did move up a little bit. >> which sectors are you favoring? >> one sector that's been under a lot of pressure is health care and biotech space. there's a lot of carnage and that probably won't happen until the fourth quarter but if you're willing to take a look here, depending on what happens in the election cycle but that might be a sector you want to start nibbling. >> the u.s. dollar hasn't necessarily been the safe haven currency of choice, the yen more so than the dollar. do the events of today make people refocus when things are really scary, particularly on the geopolitical front?

>> it certainly is. that kind of plays havoc. we've seen oil take this leg up over $40. and largely on the strength of the weaker dollar because the fed generally was perceived to be dofish in its statement last week. that's what pushed oil up further. i think a lot of people will be perfectly happy to see a somewhat weak dollar overall. unfortunately a little bit of a concern that as we get closer to the next fmoc meeting in june and they have been talking a little more hawkishly about the possibility of that and some talking about april. there's concern that the dollar may rise again. the whole thessis about commodities, it could wreak havoc. >> when you consider the u.s. dollar moving forward important as it is for equity markets, do you focus on geopolitical events or on the fed? >> i think the fed is going to be first and foremost and today is a good example. what happened in europe should have caused this market to go lower. i think they'll focus on the fed

first and foremost. >> pleasure to speak to you. we're looking at about a 40-point decline -- the bell being rung by medal of honor winners. on that note we'll leave this hour of "closing bell." kelly will pick it up with you in just a couple minutes. [ applause ] >> thank you, welcome to the closing bell. here's how markets are closing today on wall street, the dow going out with a decline of 38 points, a quarter percent drop. the s&p broadly down 1 points. the nasdaq managing to stay positive today across other markets, transportation stocks noticeably lower and vix a little bit elevated on the session today. joining the panel we have cnbc senior markets commentator michael santoli and rob cox and

tim seymour. the market reaction to terror attacks in belgium, how would you describe it? >> very subdued, a little bit of weakness but the serious reaction was localize and leaders have lagged a little bit, dividend stocks. i think the market is kind of used to things on this scale, which doesn't really change the story from yesterday in terms of for example, localized terrorism being contained in europe. we didn't think so today and got reminded today. >> let's turn to the day's big story. the fallout, sue herrera has the latest details. >> as we know at this point, bombs exploded this morning at the brussels airport killing at least 30 people and wounding 230 people as european capital was again locked down amid heightened security threats. the islamic group claimed responsibility for those attacks. president obama in cuba for his

three-day historic visit says the u.s. led coalition will continue hitting isis militants. >> this is just one more example of why the entire world has to unite against the terrorists, the notion that any political agenda would justify the killing of innocent people like this is something that's beyond the pale. we are going to continue with the over 60 nations that are pounding isil and go after them. in the meantime, our thoughts and prayers with those who have been lost. >> and in brussels, people are paying tribute outside the brussels stock exchange in the wake of the attacks. others used chalk to write words of solidarity on the ground. social media has been very active with tributes to the victims and those wounded in today's attacks. i'll be back in a little bit with more. >> all right, sue, thank you so much. let's get more color on the ground from belgium, hadley

gamble rejoins us this hour. >> reporter: hey, kelly, right now belgian police are asking for help in identifying a man they suspect of being involved in the attacks that took the lives of at least 30 people today and 230 people were wounded here in belgium. the man was kaugtd on cctv moments before around 8:00 a.m., two explosions detonating in the brussels international airport leaving 11 people dead and just an hour or so later, another explosion at the metro station, metro station just up the street behind me. that leaving many people dead as well. 20 victims as well as over 130 people wounded. we're just down the hill from the epicenter of european politics, where the eu parliament and council meet. this is something that everyone has been talking about, not just security officials but also of course the ministers here in belgium. it was a coordinated attack

striking at the heart of european politics. there are vigils taking place across the city tonight in honor of these victims, but you have to remember right now security officials are hard at work trying to find the suspect and trying to figure out what happened today in thiz well planned and coordinated attacks. we understand there were raids taking place earlier today across the city. we also understand from the prime minister who spoken out multiple times today that he is hard at work trying to figure out what happened. he's been on tv and make statements and calling this a dark day for the country. he's given out in a tweet saying we'll defend and protect our values and freedoms. we're confronted by a barbaric enemy and we're determined and united. he's channelling a bit of winston churchill but this is a city in lockdown area cordoned off by police. a lot of uncertainty in belgium and worry. of course, people moving closely, slowly, traffic has slowed down. trains and planes and metro all

grounded tonight. very subdued city. kelly? >> hadley, thank you so much. european markets sharply lower this morning when the news broke. they managed to close in the green. u.s. markets couldn't quite get there but the s&p was down one point. what do you think is on pt minds of investors as we learn more about what happens? >> investors aren't really looking -- they are looking at this as a localized problem but it becomes sadly to the idea these things happen. we have a couple of really important events happening over the next few months, not just the u.s. election, which we're completely overly obsessed with here but june 23, the britons go to vote and things like this are nudging the no vote closer to fruition. that is actually quite dangerous for the economic -- for just the kmeng economic consequences for the entire world. >> one of the sharpest reactions was the weakening of the british

pound against the u.s. dollar, reflecting a flight of safety into the greenback but a sense that the odds are higher today. do you think that's fair? >> they are massively higher. the concerns politically around europe is where everyone would go answer lar and turtle up and say this is a problem we're going to deal with on our own and it won't be a united front. the pound has historically been a risk currency. risk off is something that we use the term a lot. let's face it. we've gotten to a place where markets have gotten a little bit overly complacent relative to where things were overly overdone on the down side. yes, today is an important day. the irony or maybe the chorus for people trying to call this thing perfectly, everyone was expecting a reversal in markets. and what's been actually good about the last few weeks, is that people have been wrong. you can't call this thing to a tee but now people really are expecting this thing to be the

catalyst to reversing trends. let's watch the dollar and agree with the other folks on the panel saying it's going to be about how much the dollar becomes a safe haven. and if it does, you have to seal a lot of other asset classes pull back a bit. >> so many focus on angela merkel. she had just left successful negotiations with turkey, a situation which will be able to swap mig ranlts coming into grease back to turkey, accepting some more appropriately coming in and more documented trying to interrupt the flow, coming off that whole meeting and that agreement, now confronting this. are you surprised that the german dax is still up. >> i can't say i'm surprised that the equity markets didn't really reflect what does seem to be more acute concern about exactly how this issue is going to play out. really the broader retreat from deep links with other countries and other regions and this -- the events today do reinforce these movements that have been going on here, elsewhere,

rethinking trade and rethinking open borders and all of that stuff. i don't think very long term is great for a kind of corporate values but on a day to day basis i'm not surprised it took it in stride. >> what do you think it does mean here? >> it's going to basically give some boost to those in the political process using scene phobia to enhance poll ratings. we know who they are. this is an opportunity to say look, i was right, close the door to muslims which has the opposite effect what we're trying to do with europe to try to bring -- we don't want to close borders, it is closing minds and very bad for free market capitalism. and bad for bottom line. i worry that this will just be another opportunity to full ment xenophobia. >> what do you think, it's been

weakening so steadily, what next? >> i think ultimately we're in a place where the fed has shown and other central banks have shown, grease has kicked out a lot of these events which will absolutely lead to a flight to quality. markets are range bound. higher end of a range. on valuation, make an argument for -- companies with high dividend yields and the dollar will go higher and it is probably 2 to 3% higher in the next week or two. and i think that's the peak. >> thanks for joining us. >> tim seymour there. you can stick around and catch more with tim and fast money crew at 5:00 of the ongoing coverage of the latest developments as the situation continues to unfold. up next, we'll tell you how the presidential candidates are reacting to the belgian terror attacks. plus, nike earnings are due out any minute. we'll break down numbers as soon as they are released.

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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.

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belgium. john harwood has the latest. >> as with similar tragedies the attacks put government officials on heightened alert and alarmed american voters and dominated talk in the presidential race. john kasich criticized president obama for not cutting short his trip to cuba but the president interviewed by espn and exhibition baseball game said that would only give the terrorists what they want. >> they cannot defeat america. they can't -- they don't produce anything and don't have a message that appeals to the vast majority of muslims or vast majority of people around the world. what they can do is scare them and make people afraid and disrupt our daily lives. as long as we don't allow that to happen, we'll be okay. >> others targeted donald trump as he talked the tougher border

control. hillary clinton said they need to calm voter not scare them. >> i don't think we want to be playing to people's concerns so that he we turn against one another. i think we have to have a slow, steady smart strong response. and we don't need to be panicking. >> and ted cruz ripped trump for having suggested a day earlier that the u.s. cut back on the commitments to nato. >> donald trump is wrong that america should withdraw from the world and abandon our allies. donald trump is wrong that america should retreat from europe, retreat from nato, hand putin a major victory and while he's at it, hand isis a major victory. >> it's impossible to say whether any of this will meaningfully alter the 2016 race. the earlier paris and san bernard de bernardino attacks didn't seem to.

joining us with more is mary kissell who spent time living in brussels. what have we learned from these latest attacks? >> what we've learned just as there's a cost to intervention, there's a cost to global retreat. we're reminded again in brussels today. europe has spent several decades now in a kind of post modern bubble slashing their defense to degrading their intelligence capabilities. look where abdeslam was hiding. he was hiding in the heart of brussels for weeks and weeks and weeks. and this is a wake-up call to europe that they need to get serious, not just about defenses but need to get serious about addressing what the real problem is here that's assad and existing of a caliphate. >> do you see that happening? if europe does become more militarily aggressive, will that

be even as u.s. under a donald trump or other candidate wans to recreed? >> ted cruz made an effective point. donald trump told the editorial board we should be pulling back from nato and get out of europe and then here we see in the heart of europe this devastating terror attack which would argue for more vigilance on the part of the u.s. and more attempts to make europe safe and make the u.s. safe. i'm afraid that doesn't get through to average voters. they hear i'm right about shutting down borders and ban s muslim immigration to the u.s., i told you so. that fear plays to everybody's insecurities and fears. i think at least short term might help drive out turnout for donald trump. >> rob? >> i mean, of all of the politicians that you lined up there and all of their comments, it seemed hillary clinton was offering calm and lessee

motional approach to it. i'm not sure that's exactly how she would approach it but it seems to be the right approach. our approach on many of these issue is to react with emotion and people don't make good decisions in emotion. we learned that after 9/11. we keep learning that and we haven't yet acted on it. >> she said we need a slow steady smart strong response. >> hillary clinton has no credibility fighting the war on terror. this is the woman who supported pulling troops out of iraq. we've had troops in south korea for example, for more than half a decade. nobody has worried about that. if we kept troops in iraq we wouldn't have isis today, not to the extent that we do. this is the woman who supported giving iran a state sponsor of terror $150 billion. so when she says a smart approach, there's nothing in her record that suggests that bernie sanders is even worse. i'm not saying donald trump is a great alternative here. ben makes a great point, he's essentially doing what obama is

imposing. >> i guess the big question to me, do we have to broaden this event out into a whole sale failure of some sort. after 9/11 there was talk if you create the path of greatest resistance for your own country, that was something that was sort of a long-term gain that could win. maybe we're seeing individual cities in europe are soft spots that have to be rectified in a local way. >> ben, if that's true, i wonder what kind of response we can expect from authorities or populations who are increasingly pushing towards people who seem to be more nativists. >> i think you'll only see the sentiment rise. john harwood in his piece that you introduce the segment with, said paris didn't have a huge impact on the presidential race. i think the larger climate of fear over terrorist attacks is the reason we have donald trump in the position he's in now. there's the economic insecurities and trade issues,

but a lot of it is based on nativism and nationalism. i don't know if it i am packs today's races win arizona, lose utah, as far as the northeast, for trump it's all about driving upturnout among his base electorate. if they feel scared and vindicated by saying don't let muslims in the u.s., that's big for trump going forward. >> is it a situation where they respond to his sharp rhetoric about border and muslims but policies would be a continuation of what perhaps voters see as failures of obama? >> important to note, donald trump is the weakest front-runner the gop had in decades. ted cruz and kasich swamp him and trump loses to hillary in the general election by a mile. we'll see how voerts respond. one thing is clear, is lagsism, the hillary formula and bernie sanders formula does not work. we'll see if ted cruz and john

kasich can explain why we need a more aggressive policy. if the u.s. doesn't lead, europe will not lead. >> mary kissel and ben white of politico. thank you for joining us. nikes earnings are out. >> big beat on bottom line, 55 cents for the third quarter for nike. a miss on revenues for nike. analysts were looking for 8.2. what we got as $8 billion in revenue growth. that's 8% higher than where nike was this quarter a year ago. but a big part of the story is the stronger u.s. dollar because if you take out the dollar from that equation, you would have seen 14% revenue growth, which would have actually been a big beat. in terms of gross margin, a lot were looking at this number because nike warned about higher inventories. it came in higher at 45.9%. street was expecting 45.5%. inventories though were higher by about 8%. and of course with nike, they

report the futures orders which gives a good forward looking view of sales going out about five months or so, which is the lead up to the olympics. nike is reporting global futures of 12%, a little bit of a miss but again, some strong dollar story because 17% would would have been the that anybody if you take out the currency. and one bright spot, that is china, there's so much interest in the chinese slowdown and whether that would be reflected in the consumer numbers here. nike, future orders in china up 36%. one of the strongest regions in the world for nike and continues to show resilience yens to what we're seeing in the overall economy there. just in terms of other guidance here from nike on track pretty much, the question on the call is going to be which begins at 5:00 p.m. eastern time. did they see real weakness in places like western europe which were a miss or just a currency story. we'll look for guidance on that. for now, back to you with shares

down 3%. they were down 4% a few moments ago. sara, thank you. >> obviously the top line miss, i take sara's point that a lot of this is currency, but the dollar didn't exactly ramp in the last three months and analysts putting out these forecasts knew where the dollar was trading. i don't think you can fully say that it was -- that you have to overlook the miss on the estimate side. i think the bigger context, this is a stock that's priced for very good things, 30 times earnings stock, it executes pretty well every single quarter. it gets stretched a little tight. >> and people are watching closely to see if there's weakening in terms of demand trends in china in particular or how well the u.s. consumer -- >> it's a 30-time stock and trades at 40% premium in the market. it's incredibly resilient company. maybe it misses on a number -- when you look at the long-term trend, they blow everyone away. they have created an as

pierational product brand. i was in italy last week, people love this product. and not in a sort of crazy crock, i love it today, hate it tomorrow -- >> like deeply appreciative way. >> competitive spirit, winning, it's -- and they just continue to do this. would i be buying it at 30 times earnings? at this point, i don't know it's gone up 10,000 times? i don't know. it continues to amaze. >> i learned the other weekend, one of the founders made the first nike waffle shoe by pouring rubber into his wife's waffle iron. >> they have a museum and you see the volkswagen bus that phil night sold things out of. >> from that to the self-tieing sneaker, which we'll see coming to market here. nike shares still down a little bit more than 4%. up next, we'll tell you how airlines are ramping up security in the wake of these terror attacks and whether it could

impact the travel industry. mohamed el-erian joins us.

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let's get back to sue her raer ra with the latest details in belgium. >> three suitcases were used in the attack. the third did not go off and was disposed of by belgian authorities. one man did flee the site. 230 were wounded in the two airport bombings and another in the brussels subway system. islamic state claiming responsibility for the attacks. in a statement it said there will be black days ahead for the aggression against it. the u.s. believes the claim is authentic. wireless carriers offering free calls and texts from the u.s. to belgium. all announced their customers in

the u.s. can call and text numbers in belgium for free for a number of days. showing solidarity european monuments were lit up for the belgian people and eiffel power and the fountain bathed in the colors of the belgian flag. that is the latest on the attacks. we'll have updates throughout the evening. back to you, kelly. >> thank you so much. airlines are tightening up security after today's deadly attack. phil lebeau is here with more. >> here in the u.s., if you're flying in the next couple of days, you may notice a few more armed police officers, guards around. otherwise you may not notice a difference but there is a difference. as for what's happened in europe, here's the update. brussels airport was closed today and will be closed through tomorrow. airlines flying into brussels they are waiving ticket changes, united came out with a statement

outlining what the changes are. other european flights they continue. not real -- a lot of ripple effect in terms of other flights around europe being canceled. as we mentioned here in the united states, airport security has been stepped up. you can see a greater presence in newark and o'hare and all major airports. a lot of things being done you're not going to see. in terms of the airlines and impact of what happens in europe, specifically whether or not they see a dropoff in business, keep this in mind, the big three, united and delta and american, this is the percentage of seats they have going into europe. really, really small. in terms of revenue, it's between 12 and 18% depending on the airline. we want to quickly take a look at shares -- not only of these, they came out early and down substantially, more than 2, 2.5%. look, finished down 1, to 1.5%. and shares of ryan air, all european. its exposure is the greatest of

any of the airlines. what's interesting here, we are showing you a one-week chart but the shares came back along with the other airline shares today because people are looking at this saying is it really the airlines that are going to be i am packed the most or a case of yes, it's the war on terror and happened at an airport, does that mean we're going to have to altar air travel in the future? that remains to be seen. >> we have heard guests tell us that traffic to paris did fall off after those attacks november 13. so some of this again, security presence, that kind of thing short lived. >> i do think right now if you're talking about what you're going to do this summer, maybe there is a little bit of a psychological impact if you're going to book that trip relatively soon. i do think you go a few weeks out and all of a sudden it's not top of mind. >> it brings up turkey, they had a series of deadly attacks. anybody who was thinking about a trip to turkey, bookings are down 40%. that does bring in the question of operators like priceline and

some of the airlines. >> this is not to discount the impact of a terror attack and how much it scares people. but if you look at historically, how long the impact is of a terror attack in terms of keeping people from traveling and compare that with let's say an outbreak of something like zika or something else, the outbreak of some type of disease is going to be greater. it lasts and there's more of a pervasive, okay, maybe i should stay away from that particular region. look at sars in about ten years ago in china. much greater impact than you're seeing with a terror attack. >> huge impact. would you change any of your plans? >> i just got back from milan on sunday. i had thought of going to turkey a few months ago with my kids and my wife. i would probably think -- just saying personally, but i would say this -- again, i think the bigger risk is much bigger. it's about -- this is another test of the european -- ability of europe to collectively act to solve problems.

on defense, on security, on the euro, these -- this is all being put to the test. that's why it happened at the subway station, metro station, right there at the very center of europe. i think the bigger problem, bigger risks, bigger risks are clearly these risks. there will be minor ones like these spikes we see in someone goes here or there. >> god forbid that these bombs went off behind security, once they got through security. then you're talking about a completely different question that would truly i think shock the system. then people would say, okay, we need to look at how we do security. >> and overhaul praerhaps in so cases. markets ending relatively stable but let's explore the longer term impact. joining us is mohamed el-erian, what do you think this does to alter european politics? >> this is a horrible event and

prayers are thoughts are with the victims and their family and friends. in terms of what if t does, in e short term it doesn't do much in terms of economic effects it's not going to be a big hit to the economy. that's why the market has reacted so calmly and maturely. the markets have been conditioned to see these things and know that the macro effects are limited. the sector effects are large. over the longer term, it's exactly what was just discussed. in europe, what does that do to a union that is having difficulty dealing with challenges? in britain, does that change the c calculs for the brex it vote and anti-establishment movement. the longer termish y issues are tricky ones and shorter term are very clear. >> mike santoli here, i wonder how this manifests in terms of a

strategy. do you have to build in a wider band of potential volatility around currencies and greater sensitivity to policy moves and things like that. how do you put that into the process? >> mike, that's a great question. it depends on how you feel about central banks. so if you believe central banks can continue to repress volatility, which i don't, then you dismiss all of this. you don't care much about the fluidity on the geopolitical front and economic front. if you believe that central banks are getting exhausted and repressing volatility, then you have to price in a higher volatility and higher liquidity premium. >> rob? >> yeah, momohammed, i'm curiou as to what you think is a bigger risk for the markets. is it the u.s. election or is it actually the vote on the referendum in the uk?

>> i think it's the latter. the u.s. has a very sophisticated system of checks and balances. so it's very hard for one branch of government to force through something that other branches of government are not on board with. that's very different for brexit, if brexit were to occur, then there would be a lot of short term disruptions and that -- the european economy and markets would be much more disruptive. i would put the latter, brexit higher than the former. >> do you think we're closer to a no vote than we were yesterday? >> i just came back from a few days in britain and very struck by how balanced the remain and leave camps were. both will tell you all it takes is a small event close to the date of the referendum to switch it one way or the other. if the referendum were tomorrow, i would tell you yeah, this has increased the risk of a no vote,

brexit, let's leave. but we still have three months. >> what does this mean for the u.s. dollar which has been weakening lately? does this begin and add vigor to an upward move? >> it's really interesting. the foreign exchange markets have been behaving very counselor intuitively and haven't reflected the fact that japan and europe have gone deeper into negative interest rate territory. i think there's a fundamental shift going on and that's why the dollar hasn't strengthened as much as people expected. if people look to fundamentals, the dollar is a better place to be. >> it's interesting to bring that back to nike a little bit. it was quite clear for 18 months going into this year, 20, 25% rally against other currencies, then it's been weakening and you wonder and look at it now up a third of a point. but still 95.5. how are companies going to digest this? >> the dollar did front run the

fed, right up almost to the moment when they did finally raise interest rates. i think they are at a point as long as the swings aren't that violet. they are going to be okay with it from here. it was a tremendous shock to the bottom line. i think right now it's really should not be the primary issue that investors are looking at. i do look forward to a few quarters away, and the dollar continues to decline, when they start crediting the weaker dollar for their global profits. >> before we let you go, oil markets, we haven't spoken much about the oil price which is a story of its own. any fallout there from what's happening today? >> it's impressive that oil did what it did. you would expect it would do worse given the nature of the shock. i would reiterate what mike just said, whether it's foreign exchange market or oil market the key issue is volatility. what we've seen recently is lower volatility. and markets like that and ironically companies like that

too. so the key issue is to try and main continue lower volatility of these two markets. >> mohamed, thank you for joining us. >> thank you. >> always good to get your perspective. the government says it now may have a way to unlock the encrypted iphone of one of the terrorist, john sculley tells us whether this is a huge black eye for government and his former company. we'll get the latest details on what the fbi is saying into the investigation into the deadly belgian terror attacks. stay tuned. >>that is until one u clips a food truck, ruining your perfect record. >>yup... now, you would think your insurance company would cut you some slack, right? >>no. your insurance rates go through the roof. your perfect record doesn't get you anything. >>anything. perfect! for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident,

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welcome back. the delay coming as the government said it may have found a way through a third party hacker to get into the locked phone. this may eliminate the need for apple to create a backdoor entry. this is a bigger black eye for apple or the fbi? joining us for his take, john sculley. let's begin with apple, your former company. if there's a way for a third party to get into the iphone, that's a big black eye, isn't it? >> i'm not at all involved with apple, not speaking for them. but i don't see this as a black eye at all for apple. i think tim cook has done an

ex exem exem exemplary job of leadership. it's backed up by a lot of people in the tech industry. >> the fbi now know longer needs to crack the phone but the whole defense and point was we cannot let this technology be accessed by anybody and now it's apparent, it can be. >> i think apple's position as i understand it is they say that privacy and the security of one's data on the iphone is something that apple is going to stand behind. and if someone else cracks the code to get into it, that goes beyond apple's ability to stop them. so if someone comes in and can do that and the fbi goes to them instead of apple, that's perfectly fair. i think apple is being responsible by saying that they are going to do everything they can to secure the privacy and security of data for people who own iphones. >> understandably enough. what do you think, mike? >> i thought all along there was a chance both sides had

incentives to overstate the stakes for this particular case or almost use it as a test case and retreat to these very strict broad principles as opposed to saying let's try to find a solution to this particular issue. maybe this shows that in fact that was the case, it's a limited group of products at this point. but it was an opportunity for both sides to say, look, we have to get this sorted out. we have to have a policy around. >> that's why it's interesting, rob, the fbi now, which again people had criticized it to some extent for being so public with this battle, now it has found a way perhaps to go around the issue in the first place. >> oh, my god, shocking. when you have these kinds of debates and this is why we exist as journalists, you know they both take extreme positions and somewhere in the middle therein lies the truth. and somewhere in the middle we find the fbi and government wanted to press its case and wanted a precedent. this is not the first time it's going to happen. lo and behold there is an alternative, we think, it looks like it. on other side, apple doesn't

really want to publicize the fact, you can get your phone hacked into if it's really necessary. this is not going to go away is the point. we still need legislation and can't be working on of three lines written in 1791 to determine how we handle these matter. >> that's exactly john, what i was going to ask as well. if this recedes for the time being and can be solved behind closed doors or more quiet my, it doesn't really make the issue go away, does it? it basically just suggests there's work around. is that an inferior outcome than properly designed legislation or actually is it a better one because we know we're never going to get that? >> i think it was not well handled by the government. it should have been done quietly in the background and more could have been accomplished. i do think that tim cook was responsible when he said, you know, let's figure out if there should be a change in the law. let congress change the law.

it should go through the courts up to the supreme court. it's not the job of apple to be determining that. so i think we have to let the process develop. it's a big enough issue that it may well end up in congress and end in the supreme court. >> that said, as ceo, if this is now in the news that there's a way to get around the encryption of the iphone, wouldn't your first priority be to try to figure out what that was and shut it down? >> think of it this way. imagine what the rest of the world would think if they are buying iphones and know the fbi has a backdoor into the iphone. that would be a real problem. i think just from a business standpoint as well as the standpoint of protecting privacy and security of data, there's good reason why any ceo would want to make sure that they were not cutting a sweet deal with the government behind everybody's back. >> in a way, i guess, mike, potentially elevates the entire thing. you know, it just makes the kind -- the technological aspect

of it more sophisticated. >> apple had an interesting, saying our brand is about privacy, at the same time they were saying we never said it's absolutely impossible for somebody to spend a lot of time and resources and get into our phone. i do think it has elevated the issue quite a bit but you have to wonder the the attention span on these things. i don't know the people on a day to day basis, absent these headlines are that focused on the integrity of everything that runs through their phone. >> whoever comes up -- helps the government, certainly they are going to have a huge business opportunity with the folks at apple. >> that's a point as well. always thinking there. john, thank you so much for joining us. really appreciate it. >> thank you, kelly. >> john sculley. find out what the fbi and other agencies are saying about the investigation into the deadly belgium terror attacks when we come right back.

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the man hunt is under way for those 130responsible for th terror attacks in belgium. this is new video we just got in of some metro stations beginning to reopen in brussels. more on the early stages of the

fbi investigation. eamonn? >> hi, kelly. new information from secretary j jeh johnson where he says there's no credible threat here in the united states but they are concerned about the possibility of lone wolf attacks and are saying as a prekau precautionary measure tsa is deploying additional security to major city airports in the united states and at various rail and transit situations around the country. it tsa is working closely with state and local law enforcement, airport authorities and the aviation industry in order to augment that security. at the same time we're getting a new picture from belgian federal authorities who put out a picture taken from airport security video of three men they say are possible suspects in this attack. if you notice there are two men there on the left-hand side of your screen dressed in black. the man on the right with the hat, glasses and lighter colored clothing, belgian authorities are saying is possibly at-large, possibly survived this attack.

it's unclear the fates of the other two men in this picture although authorities have said that at least one of the attackers was a suicide attack. belgian authorities say they are on the lookout for the man on the right-hand side of your screen. is not clear where he may be at this point and no indication of what his name might be, but you can imagine that in the hours and days to come we'll find out a lot more about who might have been behind this horrific attack, kelly. >> eamon, thank you. mike, what do you think is most important to investors and to markets watching the investigation? >> honestly, do not see another follow-on response. it does seem, again, like one of these bursts of violence that doesn't necessarily have a broader campaign immediately behind it, and i think honestly memories will fade. the paris attacks happened very shortly after the markets peaked in early november. if you look back on it, nobody is saying pair sis a reason we had a weak period after that. it was kind of lost because it wasn't immediately followed by

something else. >> of course we did see unity after paris. we saw the european union come together. we saw this deal that angela merkel was able to do with the turks as you mentioned, kelly. all of that is great as long as that is still the longer term trajectory that may be true if, again, we see borders going up, if we see responses that are basically about shutting down and the european union. >> the one troubling aspect that came out of authorities findi i abdelslam. >> we'll get another check on nike's earnings and a look at tomorrow's trading day when we come right back. so what else is new? how's your mother? umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

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welcome back. lit's check on some movers this hour. a couple of earnings, nike. the company seeing a little bit of a miss in terms of its china number, those revenues expected to be about a billion dollars come in at $982 million. krispy kreme had a little bit of a miss in terms of sales and

revenue in a weaker guidance than the market was expecting, about 1.6% increase in same store sales. nearly 3% expected in a slight revenue miss. the other was 87 to 92 cents. those shares were down 5.5%. autozone not moving too much. mike, looks like another buyback program. >> $750 million added to its buyback authorization. autozone is the ultimate perpetual buyback stock. it's been one of the examples people say, look, when you grow earnings and cash flow and buy back stock at the same time, the stock goes vertical which is what it's done. since 1998 buyback authorizations. the market cap today is $24 billion. >> wow. rob cox, what are you going to be watching? >> what am i going to be watching? i love this idea of nike as a company that just i never get to write about because they don't screw up enough. i was just thinking about that. we end up writing, breaking news

usually about when people get it wrong or do something extraordinary that they regret later, i can't think of anything that nike has done over the years. >> they are going to be the one to watch. >> keep hoping. >> rob, thank you. mike, really appreciate it. that does it for us on "closing bell." "fast money" begins right now. cnbc special coverage of the terrorist attacks in brussels continues. let's get right to sue herera back at headquarters with the very latest. sue? melissa, thank you. three bombs exploded at the b s brussels airport in the city subway killing at least 30 people wounding at least 230 more. as the you'european capital wase again locked down amid heightened security threats. the islamic group has claimed responsibility for those attacks. president obama attend ed a baseball game in havana as part of his historic three-day visit to the communist island nation. he said the u.s.-led coalition will continue hitting isis militants. >> this is just one more example of whyhe