happens. >> you said everything he said was right. >> but you can't buy a stock when it pops. >> the stock is -- will reflect the value when the activists split -- >> wishful thinking. >> we'll see you tomorrow. thank you for watching. "power" starts now. that, folks, is the wake-up call. three big name, big stock stories developing within a 24-hour period. this is not "60 minutes." this is "power lunch." welcome, everybody. all three companies should be on your radar. with michelle, melissa and brian, i'm tyler. tesla unveiling an a little ela. chipotle may go back to look to the roots in burgers. beginning with apple as the

newer compact version go on sale and our man josh is live in palo alto. josh in. >> reporter: tyler, i'm here at the apple store in downtown palo alto, you can see the store just opening now. not the usual massive crowds for this new iphone se but the line about 20 strong and see them filing in here. the new phone, tyler, it's smaller. it's cheaper. had many of the same components as the 6s and same processor, same 4k video, support of apple pay. incremental changes and important ones. you know, team at morgan stanley does think the se could help apple sell more phones in the emerging markets given $399 price point. in addition, you have that new smaller version of the ipad pro. that goes on sale today, too. starting at $599. apple keeps continuing to try to position that ipad pro as pc

replacement. when management replaced it in cupertino earlier this month, they noted the store sold 600 million pcs out there. as for apple stock, a 10% jump in past month. on track to break the losing streak. what keeps it going? bulls say maybe that june quarter clocks in better than expected in part thanks to contributions of the new iphone se. back to you. >> all right. josh, thank you very much. will the new products that josh talked about jump start apple stock? needs a little help. stock down 12% over the last year. let's bring in brian white. you have a $200 price target on apple. i believe you are the most bullish on apple on the street. what is driving that very bullish thesis? >> well, i think, you know, apple, i view as a most undervalued technology company in the world. ten times x-cash this year.

eight times next year. look at the s&p, sugar water companies at 16 times, 23 times. they're growing at a fraction of the rate. so i look at apple, you know, they have a smartphone franchise with very small market share and i think they can expand that and there's lots of new opportunities, whether it's wearables, automobiles, television in the future that they can really capitalize on. >> very small market share? i presume you're speaking globally because in the united states it's, what? they own about half the smartphone market. >> exactly. globally 15% of units n. china, depends on the quarter and it's over 10%. india it's 2%. so when you talk about this se, that's really going to jump start them and areas of china, in certain parts of the country which are tier 3 through 5 cities and india nowhere and makes a big push over the next year or two. >> how important is the smaller phone coming to what was this big, big headline that we talked about, all the papers that this could be the first year that you

see a decline in iphone sales? is that new phone enough to grow the market into areas they couldn't have gone before and reverse that or no? >> it's a great point. when you look at the decline in fiscal '16, just remember we had an extraordinary fiscal 15 because of the bigger iphones. first time ever. the 4.7 and the 5.5 inch. so the comps are very difficult. that's really what it is. so i think with the iphone 7, what the market is starting to anticipate, you know, you are going to return to growth and that's what apple story's all about. >> enough to turn it for this year? i mean, could it lead to flat sales or no? >> not in fiscal '16. nearly impossible. well, the se will help out a little bit this year. so it's a little bit of a tail wind but i'm looking more at the iphone 7 moving into fiscal '17 and the se in the developing countries. india with a billion mobile

subscribers. >> does anything else matter? we haven't mentioned the watch, apple pay. >> the new -- >> apple tv. >> ipad. >> yeah. so, you know, obviously, the iphone still dominates the portfolio. but these other areas are open up avenues of growth for the future and wearable devices is an enormous market. they're the number one smart watch in the world. so i think there's great opportunity for them. not going to move the needle this year. look out. i think it will matter. >> and brian, we have to end it there. again, a $200 price target. i'm sure your clients like what are you smoking because the stock at 110. >> that's nearly 100%. >> yes. >> $200 -- >> how far -- how long would it take? do you have a time -- 12 month? >> 12 month. 17 times calendar '17 numbers and add back the cash. again, i'll just look at the s&p at 16 times, growing 5% a year. apple's grown 39% for eight years. night and day. >> brian white sticking to the apple guns, thank you very much.

appreciate it. >> thanks. all right. now to the next big stock story and that's tesla. remember the chronology of the models of tesla. first the model s as you see right here. then the model x and within a few hours tesla's expected to unveil the newest car and that would be the mass market car, the model 3. drew cupps, great to have you with us. i want do go over the features of the model 3 in terms of what is expected, autonomous drive ready and a 200-mile range. $35,000 price tag. hence the mass market nature of the car. and a long bawarranty. drew, you are a shareholder of tesla, right? not all blue skies here. they're adding an actual other car to the assembly line and making two cars. we saw some execution hiccups with the x when that came out. how concerned are you about tesla's ability to execute? the demand is there.

people are lining up overnight. camping out to put their reservation on the model 3. in terms of whether or not tesla can deliver, is that a question in your mind? >> well, i think that we all know through witnessing, watching, observing, the auto industry that demand is a lot harder to manufacture than manufacturing is harder to execute on. so, while people have certainly critiqued tesla for being a quarter late or for not hitting this number or that number, you take a step back. this is a company that has grown between 30% and 50% a year for now they're in the foufrth year. this is the third building block to grow at probably 35%, 40% a year for the next 5 years. so this is a truly extraordinary situation within the automotive landscape. >> sure. >> execution doesn't have to be perfect. the feature set has to be good enough and the execution has to

be generally on trend. >> right. but it's not just the assembly line aspect of it they're also working on did giga factory for cars in 2017 and expected to start production. no coincidence of the model 3. if there's a hiccup on the giga factory to deliver batteries, it is not just whether they roll off the line in california, right? >> this is tough stuff. heavy duty engineering. i think, again, that is the core competency, that is the differentiation that tesla has injected into the automotive equation. this is a bunch of silicon valley hungry -- >> sure. >> -- really smart guys an they just tnd to move faster, think bigger. >> right. >> than the rest of the automotive industry. and that has been a constant and that is the underpinnings of why

we are positive on this stock in the next few years. >> in terms of being able to sell, right now, they are direct consumer, direct consumer is not allowed in many states. this, the model 3, is expected and is geared toward the mass market. can tesla meet the numbers it needs to meet going direct to consumer online? >> yeah. i think the answer is, yes. they will continue to work hard to level the playing field. and to be able to do that in all states. to go direct in all states. but i do think the lines around the block are one indication. the very fact we're only trying to add a couple hundred thousand cars in, you know, a u.s. market of 17 million, these are number that is really aren't very challenging. so they love to have it blue sky where they could sell multiple ways. but if they're not able to in a couple states, i don't think that's a constraint. >> all right.

drew, great to have your perspective on this ahead of the launch. again, that tesla event starts 11:00 p.m. eastern time. it will be web cast so if you're interested, tune in. thank you, drew. three big changes at three big companies. the triple play with a big changes that could be coming to chipotle. "power lunch" is back if two. they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. the first stock index ♪ (musiwas createdoughout) over 100 years ago as a benchmark for average.

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welcome back to "power lunch." chipotle starting to see customers following the e. coli outbreak but the stock has a long road to recovery down nearly 35% since the first case reported back in october. however, now the company could be looking to help burgers drive growth. chipotle filed a trademark application for the term better burger suggesting to start a burger chain. should you own the stock? let's bring in senior rest rapt and consumer analyst steven anderson, he has a sell rating on the stock. stooe what do you think about the potential of a burger chain? doesn't change your mind? >> i think this is a distraction at this point. chipotle as you may know has two other chains out there. it has chop house a southeast asian rendition based on the chipotle model and peizzpizzari.

maxim made previous mention of another chain based on the chipotle model. high frequency, a high customer food group model but the bottom line is that chipotle has to really pay attention to bringing guests back and without the promotional giveaways an enthe free burritos, they're having a tough time of it. >> let's be clear. be clear about this. is it that it's a distraction right now because of the situation where they have seen same store sales decline so sharply because of the situation with the e. coli or it would always be a distraction and you don't think burgers are within the core competency? >> this is the right idea but it's the wrong time for them to do it. i do think the fast casual burger segment growing mid to high single pace per year and there's still a lot of leeway

for another national chain to come in in our view. top three players in the space combined 30% market share so i always said about six, 12 months ago, if chipotle did this then i would have given them a vote of confidence but in light of the food safety issues, the loss of customers, the lack of perception among customers, i do think this is something to need to time to heal the wound. >> are we a peak burger? >> not sure we're quite there yet. >> i can name about 30 burger joints opened up in last three years. >> i would say, you know, going back to last decade or so, americans do love theirburgs and that's an evidence in some of the growth in this segment. you have -- and we are seeing more dynamic competitors like shake shack and the habit. you know, expanding coast to coast. but even with that, there's still a lot of, you know, fragmentation in the segment and i think another major national

chain could be the one to do it but i don't think the time is right for chipotle to be that one. >> i get, steven, it could be a distraction. they have a lot of other chains. they have southeast asian kitchen, chop house. it's not weird for chipotle to be opening a small scale burger chain. i mean, do you think that those other things are distractions? >> i would agree with that but consider that chop house only has fewer than 20 units and they started chop house five years ago in washington, d.c. so very slow go of it and i think if even if chipotle were to start better burger, it will take us several years for really to gain a momentum. so i think it's not -- nothing to be that much other than a potential distraction for management and what they need to do right now. >> you have a sell on the stock and so do a lot of other analysts. fact set, for example, the buy, hold, sell numbers versus apple, not a single sell for apple.

there's -- we couldn't get a single one of the eight buys to come on television. all busy. and the holds, none of them really hold but quite negative. when i see that kind of negative attitude on wall street, you're right in the heart of consensus about being negative on chipotle. that's a big -- warning sign that actually the stock is a buy. >> well, you consider that even if you consider a more dramatic earnings recovery next year, the multiples do have to come in and the multiples that have been with the name in the past assumed consistent same restaurant sales growth and unit growth above 10% and in light of the food safety issues, i would think that management may have to even pull back the growth estimates even for the core chain so i think this is something that multiples will no ed to stay compressed for an extended period. >> thank you so much.

coming up next, the outrage over an idea being floated in our nation's capital to pay criminals. to pay criminals not to kill people. the full details when "power lunch" returns.

welcome back. we want to bring your attention to something of valiant pharmaceutic pharmaceuticals. approval of a plan for valeant putting a halt on trading of the

stock in canada by any officers or board members. now, this includes, of course, hedge fund titan bill ackman and important to note that this plan to halt trading by insiders at valent disclosed on march 21st announcing the ceo succession plans and affects trading in the canadian listed stock and they themselves said it will not now allow trading of u.s. listed shares by officers or board members, as well. so an interesting development, melissa, here. basically had its plan approved so that no officers or directors trade in its own stock ahead of what it plan to do with the release of the financial statements and intends to do so by april 29th. back over to you. >> a couple of questions, dom. does this prohibit trading in options? in which bill ackman is active, particularly with valeant?

i would think and as i understand it sitting on the berd of a company, your trading ability is limited. >> correct. that's the reason why the plan is put in the place. the cease operations type order here. again, anything that affects the trafficking of its stock is probably covered by this. again, this is authorized by a quebec securities regulator in effect handles all of the trading in canada for valeant and a voluntary basis here and it's interesting, too, melissa, this order or request lasts for about 15 days, i believe. and if their financials still aren't out by then, the presumption to put another request in for another management trade cease operations for another 15 days until they can get that financial statement i guess out into the open. is the way it shapes up to be for right now. >> not much reaction. thanks so much. let's gate check now on the

bond market. let's head to rick santelli at the sme. rick? >> thank you. we know that janet yellen and company dovish tuesday. and the market, well, it took it stride. short rates dropped dramatically and the curve actually had some steepening but today about a parallel shift, maturities down two basis points. a 25th february start you can see a breadth of the drop of yields. long end wasting in time catching up. call it a continuation of policy. see comping about the same period the 29th of february on 10s. but foreign exchange where the action is. looking at the euro versus the dollar, comping to october last time euro was this strong. if you want to welcome at some commodity currencies, take the aussie dollar. the aussie versus the u.s. dollar. these are the best levels since july. and last but not least, the

dollar versus the looney, this of course, the canadian currency, best levels also since october. yes, the dollar index is down and out a bit and it has along with other issues helped these commodity currencies and may have bottomed for now but policy plays a big part, as well. melissa, back to you. >> thank you. i couldn't ask for a better segue. talking about gold prices, closing right now. rick mentioned the weaker dollar. this is month and quarter end and on the quarter the dollar index down by about 4% and helped the commodity trade overall. the s&p gsci posting the best or first monthly gain since october. take a look at gold prices right now. 1235.50 is where we're closing, higher by a half a percent and the rest of the metals complex, silver higher. lat numb with a post of 1.3% and some losses for copper and palladium.

ty? >> all right. "american greed" with a rise and fall of former new orleans mayor ray nagin. in the post-katrina recovery, an engineering company tries zbeet the contracting pool. the government says nagin uses the granite business stone age as a conduit of corruption. >> specifically, ray nagin asked for $60,000 in january of 2008 from rodney williams. and at that same time, ray nagin promised and guaranteed to rodney williams, quote, i will take care of you at city hall. in effect, rodney williams and his two part nerls wrote personal checks on the same date, january 31st, 2008, $20,000, $20,000, $20,000. delivered those, those were deposited in ray nagin's company of stone age llc and in turn sought contract after contract. rodney williams went from averaging about $100,000 a year

in city work to over $1 million a year after he paid the bride that ray nagin asked for. >> prosecutor matt coleman says after going through rodney williams' money, nagin set out to take in even more. don't miss the season premier of "american greed" tonight at 10:00 p.m. eastern and pacific here on cnbc. take a look at the dow now positive by nearly 2% for 2016. what a nice month it's been. month of march. so where are the markets headed from here? back to 18,000 or taking the cash off the table? we'll bring you the debate when "power lunch" returns. this car? came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle.

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hi, everybody. here's the cnbc news update this hour. canadian prime minister trudeau in washington for the nuclear security summit sat down with cnbc for an exclusive interview with this to say about international trade. >> i think we have to understand that trade is ultimately good.

not just for our countries but for our businesses and for our workers. we know that the engaging with the world in a constructive, positive way leads to good jobs and good growth. i'm not worried that we'll going to reopen nafta or other trade deals. >> nearly 400 migrants and refugees were rescued by the italian coast guard in an overnight operation off the liby coast. the rescues migrants then transferred to a norwegian ship. mcdonald's says it plans to open 1,500 new restaurants in china, south korea and hong kong looking for faster growth in markets to drive the global turnaround. she tried to say. it's looking for partners to help finance that expansion. it is every video gamer's dream playing the favorite games at large scale on the facade of a building and that's what four german computer scientists fulfilled transforming the front of a building plays tetris, breakout and pong.

more than 5,000 hours needed to complete that particular project. >> that's the news update this hour. back now back to you guys. >> productivity enhancement or killer? >> i think killer. >> thank you, sue. stocks modestly higher on the final trading day of march and of the quarter n. fact, s&p 500 is up nearly 7% in the month of march alone. so what happens next? can the market rally continue in q-2? joining us is matt rottie and zachary carabel. guys, you know, the first quarter was incredibly tumultuous, right? unbelievable volatility. yet, if you've gone to sleep last three months, say, what? nothing happened. what happens next for the recollection of the year? volatility or smooth snout. >> you know, that last segment that sue did about 5,000 hours turning a building into a video game made me reconsider my thoughts.

the world cannot falling apart nearly to the degree we think if we have the amount of free time and excess capital to spend doing that. and, you know, i'm saying for a while, look. not just three months going to sleep but the past 15 months, right? we have been in these periods of intense volatility and june of last year and the fall of last year and january and february this year and etch time the volatility periods arise you get massive commentary of the shoe dropped, the market will collapse. easy money. the fed. each time about a three to four-week period and unless we find fundamental deter ration, you know, we kind of in the market we have been in until otherwise notified and we should be aware of the fact if there's another volatility period don't be so quick to jump off the cliff. doesn't mean we're off to the races. i used two cliches in 20 seconds. you get the point. >> i do. matt, what zachary is saying the selloff, this one is the big

selloff this time around. turned out to be once again it appears right now a buying opportunity. what do you do from here? do you continue to ride the high higher? >> i'm fairly optimistic in the markets. earnings estimates slashed in january and february of this year when everyone was worried about commodities and the credit issues and currencies and china and what i think you will find is reduction in earnings estimates, beatings on earnings and should help us get through a period of digest after that 7% run we have had. i'm optimistic throughout the rest of the year and what we need to do is get through the first quarter earnings through april. if they're good, i think we can hold the levels and i think they will be good and then we can kind of go -- >> hold on. one thing. the worry that is you listed, they still seem to be true. i mean, the only thing to think of is janet yellen earlier this week kind of paved the way for you not to be worried about the

worries anymore, matt. >> yeah. i would disagree. the chinese voluntariatility co back. the benefit of the commodities to the consumer offset by the concerns of credit to the companies. above $40 a barrel, around $40 a barrel, the credit conditions improve but the consumer benefits are still there. so we think that's a good thing. the other thing is currency, the dollar's not continued to just climb, climb, climb. and that is thanks to janet yellen being a little bit more dovish than she was back in december and i think that's a good thing for earnings, too. >> we are showing people you like disney and, zach, what? >> two things on this. distinguish of probabilities and possibilities. all the worries are possibilities for the year and maybe several years. china, the macro environment of europe, the macro environment of the united states and trying to point to is the possibility of those things does not then

translate to the probability and then the second point about earnings, you know, last year, last two, three quarters negative earnings or really depressed earnings. earnings are a year over year comparison and later in this year, you will have very easy comparisons to surpass. that doesn't mean and tell you about the fundamental revenue and or earnings growth of companies and revenue growth is modest but -- >> it's relative basis it looks better. got it. thank you. >> thank you. you can go to power lunch.cbs.com and see why zachary says volatility's not going away this year. powerlunch.cnbc.com. so much for the old phrase crime doesn't pay. the outrageous, controversial idea floated in the nation's capital. when "power lunch" returns. seizing opportunity. and i'd like to... cut. so i'm gonna take this opportunity to direct. thank you, we'll call you.

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welcome back to "power

lunch." fitbit shares up 10% tracking for the best day since march 11th on strong sales. the company says it shipped more than a million blaze devices in the first month of availability here exceeding internal forecast. shares still down, though, close to 25% since the ipo but a big day to the upside today, tyler. back over to you. >> thank you. here's something that's if not crazy, certainly controversial. washington, d.c. now wants to pay criminals, this follows a similar plan out in richmond, california, which is paying some of the most violent offenders, gang members mostly, $1,000 per month up to a certain limit basically not to commit crimes, not to kill anybody. founder of the richmond effort which has seen a 27% drop in homicides by some reckoning since the plan went into effect. also with us, dorothy brazil, a d.c. based community activist

opposed to the notion of founding felons. welcome to both of you. i'm sure we'll have a lively discussion. >> thank you. >> dorothy, the bill or the bill that was passed unanimously by the city council that would have included some stipends of the sort paid in richmond was not signed by the mayor but it has gone into effect or will. correct? >> correct. the mayor has two options. she can veto the legislation, she could assign the bill or she could just not have signed it. she chose not to sign it. what will happen is the bill goes effect without the may why are's signature. >> the mayor oppose third degree? >> she has not put money in her budget which she just sent to the city council last week. she has not put money in her budget to fund the creation of this program, the creation of this office and the hiring of staff. >> the distinction between what was going on out in richmond as i understand it and what is proposed in d.c. is that

taxpayer money would be used. sir, it is private money that funds the program in richmond. am i understanding that, correctly? >> yes, sir. we raise about $1 million, a million and a half in private dollars every year to fund this very comprehensive program where one of the elements of seven is a privilege stipend based on participation rates and goal achievements associated with the fellow's life maps. >> you call these fellows, fellows. we might call them felons, right? because that's who they are. take us through some of the measures that you say prove the success of this pilot program. it has an interesting history. tell us a little bit about why you say it is working in richmo richmond. >> i think any time you are able to focus on the very folks that are suspected of committing

crimes and you're able to engage them in a way that's robust and responsive to their issues, you're going to have some kind of an impact. in richmond, the young men that we're engaging have avoided any criminal consequence for what they're suspected of doing. >> what you did is identified the handful, really, it was not that many individuals, as identify as most likely the victim or perpetrator of violent crime. you engaged them in therapy. right? >> we do -- >> and meetings and if they stay clean and go to their meetings then they're eligible for a stipend of some size. right? >> actually, what we do is -- yeah. so it was a handful of folks and that's a common occurrence in most city that is are negotiating this kind of epidemic. but we do much more than that. so we're engaging them every day, multiple times a day by

multiple people who are thepg them negotiate a social services platform. each of the young men gets a life map developed them on their behalf with a great deal of goals associated with it that are needed in their lives to be successful. we help them negotiate social services. the privilege -- >> money, right? >> one element is privilege stipend. >> they get money? >> the travel is another element. >> how much money do they get each month? >> oh, well, after six months of this 18-month nonmandated fellowship, they're able to earn up to $1,000 a month for 9 of the remaining 12 months of their fellowship. that eligibility is based on participation levels as well as goal achievement associated with their life map. >> are you in new orleans? because they're considering doing the same. are you there advising them right now? >> no. i am not. i had other meetings here.

>> what other cities have approached you with this idea? that maybe in the preplanning stage. >> oh, toledo, ohio. oakland, california, has already funded their fellowship and working with them now to get it off of the ground. we're talking to folks in miami gardens, florida. louisville, kentucky. and wilmington, delaware. and d.c. and have had conversations with folks in baltimore, as well. >> sounds good. dorothy, why don't you like the idea of paying criminals not to commit crimes, particularly murder? >> well, let me put some facts on the table. first of all, you're not only going to be paying people a stipend, those who are likely to commit a violent crime but you're also going to identify and pay a stipend to people who are identified as likely to be a victim of violent crime. i don't know how you do that. moreover, i think as a person who's fought the worst of the drug dealers in my neighborhood of columbia heights in

washington, d.c., you don't reward bad behavior. you don't. >> but this point would be to reward good behavior if somehow they have come up with a magic formula that says, you would have committed a violent crime and now you won't, you're paying for -- >> incentivizing good behavior. >> part of the reaction is also the fact that mr. boggan refers to it as a fellowship. okay? you're going do give a monthly stipend to individuals not to commit violent crime. you're going to take them on trips around the world. he's taken them to various capitals around the world. what about the good kids? what about the kids trying to encourage? moreover, something like this, such a monumental change, a shift, in policy and how we fight crime should have been a matter of public discussion in the district of columbia. instead, it was almost a single sentence -- >> dorothy -- in an omnibus

crime bill passed by the council and asking the members if they read the bill, they didn't. >> that's process related. let's turn back to you, devon and address some of dorothy's points of rewarding bad behavior. tell us some of the results you've received and have any of the fellows/felons fallen off the wagon and what happened to them when they did? >> these are young men. they're kids. and typically, they're underdeveloped young men and so certainly they fall off the wagon. all of us have bad habits and so-called healthy people have bad habit that is we have tried to break and at times haven't been successful. so, yes, they fall off the wagon. and if they fall off the wagon to a certain degree they're likely to go to jail. if they don't go to jail we continue to engage them. our whole point is to try to change the mind-set that gives

rise to the destructive behavior they're involved in. as it relates to -- because i appreciate dorothy's perspective. i do. as it relates to paying for bad behavior, we never asked them to stop shooting. we never asked them to put down their guns. what we're rewarding them for is the hard work that they put in to achieving goals associated with their life map. this is simply -- >> mr. boggan -- >> that is program, human development program for young men who rarely have access to human development opportunities. i did not interrupt you. i was very respectful. >> we do want to let her get in so wrap up the point. >> respectful to me. and then the numbers. understand the numbers. not 27% reduction. a 75% reduction in firearm related homicides and a 66% reduction in firearm related

assaults. 94% of our fellows are alive after 3 years of their involvement in our fellowship. 84% of these young men haven't been injured by a firearm since becoming a fellow. and 79% of them since becoming a fellow are not a suspect in a new firearm-related crime. understand who these young men are. and to have those kind of results working with these young men are pretty remarkable. and to the -- >> okay. okay. >> to the point around the kids, the other kids, there are so many efforts out there -- >> right. >> -- for other kids. this population rarely has anyone engaging it in a meaningful way. >> all right. >> other than law enforcement which is typically -- >> you have given us the numbers. dorothy, you get the last word here. i wonder if you feel differently about the program if the money involved, address him, but if

it's not taxpayer money but rather from private sources. >> okay. the way the legislation is written in the district of columbia cannot come through private sources. private sources can donate the money but it must be allocated through the district's budget. moreover, i would like to put additional points on the table. he is very good in his presentation. however, when his program first got started in richmond, they had a terrible crime problem but it was when they did not have community policing and they had an economy that was in the toilet. now, both of those things have turned around. they have a new police chief who's out in the community. what have you. their economy turned around and guess what, richmond has seen an uptick in violent yim and i don't know how he addresses that. moreover in the district of columbia, our chief financial officer to review every piece of legislation has said that in the rest of the remaining calendar year if this program was put in place, it would cost the district of columbia taxpayers $768,000. and on average, $1.5 million

annually to pay individuals not to commit murder. i think that's outrageous. >> all right. on that note, we have to leave it. dorothy, devone, we appreciate the efforts. interesting conversation. >> thank you. >> we appreciate your time today. >> thank you. listen. it's a hot button issue and there's other toustuff in the b. i read the bill. like all legislation, the focus of what they're trying to do is just a small part, guys, of this bill. >> said it was one line. >> one line. in a 32-page bill an i want to present for the audience if they're interested, care, living in the d.c. area, a couple of things. creates a bunch of task forces. okay? >> committees! >> committees to be funded. all kinds of stuff. it's great stimulus for the security camera business because it calms for a $200 rebate. if tyler has a building, a $200

rebate on every camera you install to sort of focus in and spy on people up to $500. ironically, the police department doesn't like it. because it adds all these things -- well, it adds the things into policing that require it, when you arrest somebody, you've got to add all the stuff of who was it, gender, race, level of aggression used. >> don't they do that already? >> i don't know. the point is there's extra policing stuff in here. sort of changes the way you arrest people in a way as much as i can understand it from this and probably why the police chief doesn't approve of it. but, but, if you retire from the mpd, metropolitan police department in d.c. you can be rehired by the forensics task force under this bill and keep all of your benefits so if you work for 25 years -- >> double dipping. >> full pension, retire, you can be rehired under the forensics department group. >> why is that any different

than a police officer are tiring and becoming a consultant? double dipping, the. >> on the taxpayers. >> exact same -- >> still working. >> you are actually -- >> rehired by -- >> by the same organization. it's not a separate corporation. it's actually -- >> when they become the security guard, it is a private individual paying for it. right? >> i assume some of the d.c. police are policing other cities go back to work for municipality. >> this is if you retire and going back and rehired by the same group. >> by the police. >> the point is whatever you think of the paid not to commit crime thing -- >> outrageous. outrageous. >> he said was being considered in toledo, delaware, miami gardens, baltimore. >> where does morality come into all of this? >> hold on. let me finish the point. if this is in your neighborhood, america, take a few minutes. read the bills. there's probably a bunch of other crap stuffed in there is my point. >> a lot of task forces. >> like a burrito. the chicken is part of it but a

lot of other stuff to watch out for. >> filler. we'll be right back. re at t, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.

welcome back to "power lunch." the development in the world of dayty fantasy sports, draftkings

and fanduel have agreed with the ncaa to suspend all daily fantasy games tied to the ncaa after the ncaa men's basketball championship that happens on monday. so again, they will cease and desist indefinitely all games tied to the ncaa. the ncaa issued a statement with regard to this particular decision, quote, we appreciate and commend draftkings and fanduel's action to stop offering contests of college, high school and youth sports and culminates months of hard work between all parties to reach a place that's good for amateur sports and most importantly the young people who participate. that's according to the ncaa president. so again, the latest development here. >> all fine and good but that's a huge hit to revenue, right? i have to imagine that the games a huge part of the product portfolio. >> it could be but, remember, they make a lot of stuff in terms of daily fantasy. the football and baseball season. this is the component. and remember when the basketball

season ends of ncaa not another huge ncaa related college season until college football in the fall. >> most of the money from pro, games on pro baseball, football and basketball. less on college, i would suspect. pretty sure. >> right. >> all right, dom. we'll take a break. professor richard thaler. you are called the father of behavioral economics. i've been called a lot of things. i have read all of your books. did you learn anything? i learned that humans are complicated. we're emotional. absent-minded. and we make some really bad decisions. my trade-off analytics can help companies make better decisions, but i am still learning what makes people tick. what makes you tick watson? natural language processing,

reasoning algorithms, statistical parsing. now you are just showing off.

welcome back to "power lunch." stocks pretty flat on the last trading day of the month and the first quarter. the dow best monthly gains since last october. let's bring in david seaberg and jeremy siegel. guys, good to speak with you. professor, you are known to be a bull and you sort of walked it back because last november you said that dow 20,000 was a real possibility. february you said, i have to revise that. now you say dow 19,000 by the end of the year. what's changed and has the factors disis sy pated in the first quarter? >> well, i think 19,000 is still possible by the year end but i think we're going to be in a range from 17,000 to 18,000. i really want to see the

earnings increase. i mean, we had a very severe earnings recession last year and when we had the deflationary forces of crashing oil prices, you know, we were worried about a chinese devaluation and that produced the panic that we saw in late january and early february. now, those two worries are very much alleviated now. i mean, oil is back to 40, seems to have found some sort of a base there. china's actually appreciating its currency lather than devaluing its currency so those deep fears of deflation which weighed so much on the market have been alleviated. however, i still think we need to see earnings recover from, you know, last year's spill to get a big increase. >> where are we going to get that from? in terms of looking out on the horizon and seeing the driver of earnings growth at this point or what could be a head wind? sounds like you're look fing foa

back-end loaded year and then interest rate increases expectations and could be a higher dollar and head wind for corporate earnings. >> it certainly could. we'll go into earnings week in a couple of weeks. first quarter is only better than the fourth quarter last year. i think we really have to see how things settle out and that's why i think the earnings of the second half of the year will be the driver and if we do get that earnings increase i think the market could take 25 or even 50 basis points. we had a very dovish response as we all know from janet yellen this week that i certainly think has helped the market. but i think earnings are going to be the key to achieving 19,000 by the year end. >> you agree with terms of trading range of 17 to 18 and basically where we are right now and do you also agree in the second half we should trust? >> no. i mean, look. first of all, oil, he mentioned a base at 40.

no way a base at 40. so i think oil comes in more and the dollar probably seeing more strength and talked about that in the show and settling down here a little bit and ultimately talk about fundamentals. we saw a move in certain sectors not fundamental moves. these were 100% positioning moves, covering shorts, right, and, you know, nothing is as far as fundamentals. driven by technicals. when you're a funldmental investor sitting back looking at the tape, where are you going to go? will you look at energy saying the fundamentals are solid enough? absolutely not. we are not at that point yet and some of the material names. we're not at the point in the industrial names so i look at it and say there's not places to find a backdrop supporting a valuation here. >> right. >> you know, so i look at 19,000. it's absurd and people say 20% decline in the market. throw a dart at a board.

there needs to be a real understanding of client positioning, institutional positioning and, look, do i think we can drift higher? i think we can. >> darts aside, david makes an interesting point in terms of rise of oil we have seen and people making the case that that was short covering and what drove the markets higher. so, if that is -- i don't know if you believe that is a case or where that comes in to your forecast. >> i've been surprised at the rebound that we've actually gotten because i thought we need more clarity on forming a base for oil prices, more clarity on an increase in earnings than we have but i think one thing is very important. all of those fears of recession and, boy, you know, it seemed like everyone saying recession is slam dunk. we were in a recession. they've been definitely alleviated and you don't get major market spills really without a recession and i don't think that that is on the horizon. certainly not this year or next year. >> david, there seems to be

consensus that the markets have a tough time this year. i mean, you know, consensus forecast, s&p 500 on wall street slowly coming down in the first quarter. i'm just wondering if you think because consensus is right pretty much where you are right now, david, that that is a risk. >> yep. no. no question about it. consensus earnings estimates have come down dramatically i think expecting something like in the neighborhood of plus .2% and dramatically from the beginning of the quarter. but look. i get that. if you told me a lot of commodity based stocks, equities, trading where they were two months ago, i'd back you up on that. the move is too far too fast. i listen to the commentary and from the professor and an academic perspective i'm on board. you have to understand the sentiment and hedge funds with their heads blown off on the short side of this. they won't get back in the trades any time soon.

they're not going to. you look at the move higher. you're surprised in crude moving higher? short covering caused it obviously. you have rhetoric coming out of opec so there's no way this is sustainable in my opinion so i'd say you're probably looking at lower oil and a lot of other things to fall, equities, as well. >> thank you for your time, david, jerry. tyler? >> thanks. knew tracking poll of nbc news, in it donald trump now holds 48% support. of registered republicans and so-called republican leaners. however, there is some hope for the never trump movement. a poll from marquette university shows that senator cruz, ted cruz, that would be, leading donald by 10 points in wisconsin. that's the next big state to vote. the badger state heads to the polls april 5th. let's bring in chief washington correspondent jon harwood. welcome. i just don't even know where to begin. it is getting so rich, i can't even believe it.

but let me start with this. is wisconsin the last great stand for the stop trump clan? >> reporter: no. it is the beginning of the stand for the stop trump movement, tyler, because, you know, right now donald trump is on a path to 1,237 but it's a narrow path. every state in which he's denied delegates if he is denied the opportunity to roll up a bunch of delegates, a step forward and not the last step. for example, you know, wisconsin is the state that awards delegates not winner take all but most. although if ted cruz wins by 10 points there's a good chance that donald trump will be more or less shut out of the state. however, two weeks after wisconsin, you've got new york which is an even bigger state and donald trump's leading by 35 points in a quinnipiac poll out today so it's one step at a time for the stop trump forces but every state that donald trump loses is an increase in hope for the people who can believe they

can stop trump from getting to 1,237 on the first ballot and therefore have a contested convention to go to somebody else maybe and by the way donald trump is in washington meeting with the rnc to discuss some of the scenarios because donald trump said the other day that he was considering his pledge to support the republican nominee and not run third party. null and void. been treated unfairly. >> what -- yeah. where is we in the state of a possibility of a contested convention? is there talk -- what if by some chance ted cruz were to become the nominee? could that still with a contested convention because he's still awfully controversial among conservatives, as well. >> reporter: well, i think if ted cruz gets the nomination, it will be because there was a contested convention and he won it. because donald trump has got a delegate lead. it's going to be very difficult for ted cruz, michelle, to amass the delegates he needs for

first-ballot victory. the key is getting the first ballot. if donald trump falls short, then a bunch of delegates get freed up from the initial commitment to vote for him based on the results of votes in their state. that's the scenario in which ted cruz wants to go to people and say, hey, donald trump, bad for women, unreliable, can't trust him. >> you think the party goes along with him? >> i think there's a decent chance they would. you know, they could go for a third option. they could go for speaker paul ryan, for example, or mitt romney for all we know. but i think the likeliest alternative to trump if there's a contested convention is ted cruz and if he can get to a second ballot in which delegates are freed his shot's not too bad. >> all right, jon, thank you very much. >> you bet. >> appreciate it. we'll talking short-term markets earlier. how and ireland, ireland she said, just issued the first-ever 100-year bond. how much do they have to pay to borrow money for 100 years?

2.35%. compare that to the 15% level that they had to pay on the 10-year bond back in 2011 at the peak of the eurozone debt crisis. almost forced to take the bailout loan to deal with the banking crisis. not the first time a country issues what are now called century bonds. in the last six years, mexico issued 100-year bonds in dollars,st sterlings and euros. brazil the giant oil company with a century bond. 6.8% coupon and which right now -- >> trading around -- >> 11 p%. >> that one i wouldn't feel so good about it. >> if it pays, your children will get paid, tyler. >> exactly. >> i would love to borrow for 100 years at 2%. i would love to borrow -- >> yeah. as a lender. >> a rate of inflation. >> that's what you're assuming. i get -- >> you make nothing. >> no, no, no. borrow. >> i would love to borrow the

money. >> i would like to be ireland. >> i thought you said you'd like to buy the bond. >> no, no, no. >> i would going to get bill gross on here. first-grade math, tyler. first-grade math. here's who what's on the menu. gems, talking to a fund manager who gave us a stock pick in november. it's gone straight up ever since. he has two new names for us. see if he can hit a triple here. flying private? a new jet subscription service. $12,000 a year fly as much as you want supposedly. how does that work? are marketers getting it all wrong? instead of millennials, should ads tar getting the over 60 crowd? because they have more money. all that and more much coming up on "power lunch." month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay

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

all right. negative numbers on the markets right now. the dow industrials off 13 at 17,702. nasdaq a hair negative at 4868. s&p 500 down about 3 points as stocks turn a little bit south on this last day of the month and quarter. brian? >> not sure about math. dpebding on the decimal. in december, a fund manager advised you to buy u.s. concr e concrete. shares after declining in december are up 13%. from november 4th. let's welcome him back and

steven denichol and joe gentlemen regard will join us. we do this street talk segment later on in the hour and pluck out calls. i don't want to give too much away someone a stock you like, also, from a separate analyst. had some accounting issues. why do you like this company? >> sure. when you say accounting issues, let's get it straight. if you look at the cumulative effect it is about $2 million negative ebita. they had to restate the financials for three years. negative 2 million in ebita. up to date as of yesterday and thinking about the fundamental reasons why i like this stock, a pipe manufacturer. that's used for municipal water and waste water construction. non-residential construction in general is strong. the pipe, the prices track the price of oil. oil's down a little bit over the

last year. their competitors, a material conversion from cement pipe to hdpe pipe. their asps flat and the inputs down with the price of oil and so when i look at the last 12 months of ebitda, it's $90 million. you're looking at $250 million in ebitda. ten time it is multiple on that ebitda level is $40 stock or a double from the current level. >> wow. >> so i understand the volatility. it takes a little while until investors feel comfortable but this is a great opportunity. >> the main stuff they buy is cheaper. their selling prices are flat. you see the stock nearly doubling. let's go to another name you like, continental building products. not quite the same story and noticing a trend with this with you, steven. >> right. absolutely. look. construction in the u.s. is strong. and when you have volume and

pricing going your way, these stocks work. the stock went from 24 to 14 on this narrative that the wall board guys are no longer getting pricing power. in 2015, the price wall board flat. the industry is set to experience 10% price increases april 1st. that is tomorrow. now, if they get a little bit of that pricing and we know residential construction is strong on the wall board side, street estimates up 7% in 2016. if you take mid single digits volume and price in addition to their incremental margin, i see continental beating the street estimates. you have a large private equity owner overhang and gone in the last month and continental bought back a large chunk of the stock. >> advance drainage systems and hearing more about later on. steven, a fed rated kaufman, thank you. >> absolutely. >> thanks. all right. so those are specific ideas. talk about the risks to the

overall small cap market. joe of united capital, $15 billion under management, are you particularly nervous? are you specifically or generally nervous about the overall market, joe? >> the world market not so much. i think we're seven years in here and not had a 20% decline in the s&p for 7 years. that's highly unusual. we've had a very slow and steady recovery, much slower than anyone would like. i think it's the longest bull market to experience in our lifetimes without a 20% decline so it's very unique time and when you're this far along i think stretching down to smaller cap names, i think is a dangerous thing for two reasons. one, when you have an environment where the rest of the world grows fathser pace than it has been, smaller caps are less exposed to that. e moerching markets, the turn around in europe, not going do

get as much exposure to that. >> that's a disadvantage. that's always -- joe, that's always been the -- steven, thank you. good-bye. joe, that's been the sort of talk about small caps. safety trade is, hey, don't worry. not exposed to the dollar. not exposed to global market chaos. they're good old american companies, right? you're saying that's a bad thing right now. >> it's a disadvantage right now because i think what you are seeing with the global environment is that the emerging markets are poised to actually revamp their growth. i think you are going to see that in europe and you are not participating. second biggest issue is a lot less flexibility on the balance sheet. yellen dovish than anyone expected a couple of days ago, what i think you can expect is a short-term interest rate an puts pressure on smaller companies that don't have the flexibility on the balance sheets and really when you want to avoid small caps. rising interest rate environment is a big disadvantage to smaller companies losing choices.

money becomes more expensive and in that combination you end up with less actual return on equity. and so, again, you typically want to as the market starts to price in higher rates to shift more to larger cap names, really strong balance sheets and ideally participate in it nationally in emerging markets, as well. >> we'll leave it there. joe making the case against the overall small-cap market. joe, thank you very much. appreciate that. all right. coming up, we are going to speak with a head of a private jet subscription service. do you want to fly private? but don't have a couple hundred grand every time you gree? here's a way to maybe do it cheaper. we'll talk about this and a lot more coming up. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management.

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flying private may not just be for the elite anymore. jet smarter offers private flights booked through the app allowing passengers to fly unlimited number of times for $12,000 a year. it's raised more than $56 million so far and backers from the saudi royal family and reportedly jay-z. sergei is the founder. good to see you.

>> thank you for having me. >> how many times do your average customers fly? this doesn't seem like it adds up to profits for you. >> so the average customer flies about eight to ten times a year. that's -- so call it once a month. we have some customers that fly, like, 50, 60 times a year and then others maybe fly less. but we have -- we call ourselves the most sophisticated private travel solution so we save money for the people that currently fly and then we created a new entire group, we call it aspirational flier. >> $12,000 a year for unlimited private flights. >> so we have two pieces of our business. we have an on demand piece and scheduled piece. to the scheduled piece, you get free seats for the $12,000. on demand, book a seat or whole aircraft. there you have to pay. when you on demand fly on the time you want and the day you want. choosing a time and initiate a new flight, you pay for that. people create, book charter and

spend more than $12,000 and people just focus on the scheduled seats. >> people sort of look at this, wait, for $12,000, it's all you can eat? private flying. you're saying that and what i'm hearing is all you can eat lobster and then at the bar it is sold out. so there aren't any flights that you can actually take or get that you want when you're paying that all you can fly for $12,000? >> look. we offer about 50,000 hours of scheduled flights every year. that's like 120 flights a day. there's plenty of lobster for everybody to go around and the way that the system works is natural ecosystem. to fly on friday at, say, 10:00 p.m., in our scheduled flight at 10:00 a.m., you can actually initiate a flight from new york to miami $2,000 and like a charter but you're booking one seat. we take the risk on the rest of the seats. more members in the system the more flights that get on the system. >> you're -- >> no limit. >> you're a disrupter.

this is a crowded space. some of your competitors, a lot questions in the space. were you fined recently by the faa? >> of course not. we are licensed by the d.o.t. our board member's first secretary of the department of homeland security, we take safety and system and regulatory sort of a regulatory aspect of the business is very solid. can't say the same about the competitor. >> not a single -- >> licensed to fly by the d.o.t. 6 to be licensed to do this. >> who owns and operate it is planes? what sort of financial risk do you take on? how do you get the seats? flights other people chartered that you have bought and offering to your subscribers? >> we are an asset light model. we work with the top tier companies and buy time on the airplanes, lease time, like we lease time on an airplane and exclusively ours and then portions of time on various airplanes. >> do you always make sure there's seats available or some routes where somebody might go on there for the all you can fly

sort of option and find there's nothing there? >> there's always something there. and the on-demand portion is always available. it's unlimited available. so if you think about a charter cost new york to miami, like -- 12,000. i'm 5'8" and bend over to get in there. >> safety is really the most important thing. what people sort of worry about is you never know who the pilots are or who the flight attendants are because you don't know what plane you're getting. how do you assure it's safe, pilots resflibl. >> we have a safety and security protoc protocol. background checks on people. we have the security screening on the grund. >> you do background checks on the people operating planes that you don't manage and don't own? >> on the passengers. >> on the passengers. >> we have our own security audits on the airplanes and the companies we work with. this never existed in private aviation. doing flights in groups and the volumes we do, we have to do it.

>> interesting product. sergei, thank you. >> thank you. well, the dollar set to have a worst quarter in more than five years, sectors to buy as the dollar falls and the final trades in oil. my staff could use your help staying in touch with customers. at&t can help you stay connected. am i seeing double? no ma'am. our at&t 'buy one get one free' makes it easier for your staff to send appointment reminders to your customers... ...and share promotions on social media? you know it! now i'm seeing dollar signs. you should probably get your eyes checked. good one babe. optometry humor. right now get up to $650 in credits to help you switch to at&t. we built our factories here because of a huge natural resource. not the land. the water. or power sources. it's the people. american workers. they build world-class products.

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hi, everybody. i'm sue herera. here's the update at this hour. a belgian court deciding that paris terrorist suspect salah abdeslam should be extradited to france. his lawyer says abdeslam wants to cooperate with french authorities. he refused to say, however, how long it might take for him to be transferred to france. the fbi has agreed to help investigators in arkansas hack into the apple iphone and ipad belonging to a pair of teens accused of murder. hunter drexler and justin statlen are charged in the death of the adoptive parents. democratic presidential candidate bernie sanders campaigning in western pennsylvania spoke to the media before his rally saying he would reject the transpacific partnership agreement if he became president. >> we are going to have a fair trade rather than unfeted free

trade. and what fair trade means is that american work eaers cannot forced to compete against people that make pennies an hour. that's not trade agreements that i will ever sign. iraqi british architect zaha hadid died in a hospital. she contracted bronchitis and a heart attack while being treated in the hospital. her designs including the swooping aquatic center for the 2012 london olympics. she was only 65 years old. and that is the cnbc news up did it at this hour. michelle, back to you. >> thank you very much, sue. the oil market closing for the day. the final numbers. up almost 4% in the first quarter. energy, the best performing sector in that time. almost a 50% rally were f -- for wti. 38.31 where it stands right now.

brian? remember the companies complaining about the negative impact of a stronger u.s. dollar was having on the earnings? yeah. well, now the u.s. dollar is nearing one of the worst quarters in five years. so, let's flip the script. what companies or industries may actually benefit from a weaker u.s. dollar? boris scloszberg, boy, now the dollar is down. it was strong four months ago. what would you buy? what's helped by a weaker u.s. dollar? >> janet yellen heard them loud and clear and to me the biggest beneficiaries are the industrials who are very export sensitive so i think and already had a decent rally in the month of march. if you lookt the vtifs, it's a nice rally. almost 10%. i think any type of a dip is a great opportunity for a buy because it looks to be the fed is going to stay stationary for

a while. wants to keep the dollar low and competitive and good news for the industrials going forward. >> that's going to be helped. gina, what do you think? >> so i'm actually going abroad here. i think the u.s. dollar's going to help european stocks and let me kind of explain that because it's not necessarily straightforward. it's definitely helping u.s. earnings but if you look abroad, in fact, a weak u.s. dollar impacts foreign eps to -- from 7% to 18% over the course of a year over a 10-year period. that's very, very big. even though you see the currency counter acting that, it's beneficial and europe is a high beta play on what happens in the u.s. >> all right. industrials here and perhaps some european stocks kind of counter intuitive thought there. thank you. head to trading nation.cnbc.com. technology was supposed to make our lives better.

and easier and more productive. but instead, you know what happens. we're stressed out. maybe we're less productive. we're obsessed with things we shouldn't be. we'll discuss right after we take a break and check my e-mail with the author of an amazing new book. "better, faster, smarter." we're back after this.

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with intel core m vpro processors. mobility by hp. orchestration by cdw. you ever wonder why some people in certain companies are just more productive or happy? our next guest has done a lot of research on this topic and more to find out the answers. and he's the author of "smarter faster better" and i read a couple of days ago and "power of habit" if only to learn you hear the same stupid songs on the radio all the time. charles duhigg is author of that big and could we get a bigger

sign? >> i love it. >> thank you for coming in. the book talks about pilots and risk and productivity. let's focus on what we do. >> absolutely. >> i get called an ludite because i'll say i think now technology is hurting us. it's stressing us out. you have found -- we didn't have you on because you agree with the position but what's technology some ways doing to productivity and happiness? >> it's fantastic, increased productivity over hundreds of years but you are exactly right. it nowadays is easier to mistake busyness with productivity. and what we know is that the most productive people, most productive companies, they focus on making more choices. because that keeps them focused on the right goals opposed to just responding to what comes over -- >> we get a lot of business leaders watching the show right now. turn the volume up. one of the most fascinating things in the book is you would think, common wisdom is that if

you have certain smart people that are good at one thing do that thing all the time, that thing will be better but, actually, certain companies found that you're good at this, you're good at that. flip. >> that's right. they found and we see this all the time in silicon valley, company that is pay attention to developing the employees to taking thm along a path to making them smarter and faster and better in different ways those are companies investing not in the emploe today but in them for five or ten years from now and pays off over time. >> don't be a short termist. >> that's right. efficiency is about tomorrow. productivity in some ways is next week, next month and nest year. >> every one of the viewers nodding right now probably get 200 e-mails a day of which 5% are actually relevant to their day or important to them. people just send e-mail -- long e-mails like, hey, i can send you a long e-mail because i can. how do you fix that? >> easier said than done, right? >> is it? >> disney, fantastic company.

>> never heard of it. >> you think -- >> our network. come on. >> i hear that they're not quite as good in business news. >> thank you. >> lookingt the success of frozen, "frozen" was on the brink of catastrophe until months before it was released and came together because the disney animation said it's process. not smart people or getting the best people in a room together. it is about a process that pushes you to find something new and innovative. people who look for companies that say we have a process for these things like innovation, like focus, like motivation, we have a process to make ourselves think, those are companies that make better choices over the long run. >> last thing. i don't want to get too in the weeds of cognitive tunnels but people get focused on one thing they know or a process and they get blinded. often as you're unfortunate analogy is crash of air france into the ocean and the pilots making the same mistakes over and over again. when we look at investing, we have talked about valeant

pharma, big ackman doubling down on bad investments. do you see that idea on wall street? >> absolutely, absolutely. >> i'm right, i'm right all the way to the bottom. >> frame of reference. the key is most productive people found things to challenge them. friends say i think you're right or a device, they write letters to investors explaining this is why i might be wrong and we need to interrupt the frame of view to figure out what am i missing right now? >> one thing a company did is -- hold tight. we have breaking -- sit tight. josh news, breaking news out of palo alto. josh? >> reporter: well, brian, we are here at this apple store in palo alto, california. the ceo tim cook just did make a guest appearance. now, he's been at the store before for other iphone launches. he was here, for example, when the 6 launched.

today, of course, the news we're all talking about is a launch of an iphone se. smart, powerful, relatively cheap at $399. cook was inside chatting the potential discuss merles who were here posing for selfies. two groups of people cook is targeting. one, obviously, still a lot of apple discuss merles who prefer smaller iphones. apple sold 30 million 4-inch iphones last year. 13% of total shipments, minority but a significant minority and also analysts think is se at $399 could appeal to more price conscious consumers and maybe emerging markets. finally, i'll tell you, guys, i spotted android users in this phone. they're on the android phone and heard about the se checking identity out and maybe make that switch. tim cook is hoping there's more of those around the world today, as well. guys, back to you. >> josh, lipton, thank you very much. wonder if the selfies with

android phones. two more quick ques, charles. number one, take it back to that apple. >> yeah. >> do you think apple is still a an innovator? >> absolutely an innovator. >> hello! >> but here's the thing. >> new phone. looks like the old phone. >> that's true. when you think about innovation, you are not talking about 6 or 3-month bets but 2 or 3-year bets, 5-year bets. looking at the discipline of apple, they're a model in some ways of a company that says we'll focus on the long term even at the risk of the short term. >> they have it. they own all my stuff. all right. here's the thing i referenced and maybe some of the other folks to jump in. this is interesting. you talk about a company and maybe you didn't mention it with a group of people, executives, go away on a retreat and come up with ideas designed to kill their company. >> that's right. >> their whole retreat is come up with ideas to ruin us. >> and this is called divergent thinking. number one thing we see that

productive people do is they look for opportunities to challenge themselves. you're smart, you're great. you succeed and you're learning to take advantage of your success, leverage it. what happens when it stops working? what's the warning sign? besides your fund going bust. you need early warning signs to tell you, your colleagues to say, if we wanted to kill this company, how would we do it? that's when you know the competitors or kenemies are thinking about. >> charles, real pleasure. >> thank you for having me on. >> get to work on another one. be productive. shares of square up 45% since the beginning of march. but is now the time to sell? one analyst says, maybe. that and four other stock calls to hear about coming up. but nothing could be worse for the whales. most of the orcas at seaworld were born here. sending them into the wild wouldn't be noble.

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the bigger average, the s&p 500. brian, over to you. >> thank you. time for "street talk." the daily dive into the calls and recommendations we think you need to hear about every single day. the first stock, just mentioned, square. btig's advising clients not to buy the stock saying that the money has been made. cut it is rating from buy to neutral. he still likes the company. he says, but while we continue to believe square is well positioned to enjoy sustained growth, its sharyls appear more fairly valued. they remove the price target because the stock hit it. a good call by mark palmer and said the money is med. >> this is interesting. interviewing the ceo he intimated the fact to communicate better to shareholders what the company does and not just payments. they own caviar and they have square capital which makes loans to small butzs that use the services so they have a lot of different businesses, not clear where they fit together like

food delivery and payment services. >> a square peg in a round hole. >> i guess so. you can say that. facebook with the official launch of owulis with a dollar amount of how much the vr business is worth. cantor saying a growth opportunity that could account for about 10% of facebook's overall revenue by 2020. cantor with a buy rating on the stock mainly based on the strength and scale of facebook, instagram and significant upside option of messenger and important that the businesses are not factored into 2016 estimates. >> with -- we have said it before but it's really an interesting stat. with facebook's 38% run over the past year its market cap is now bigger than johnson & johnson, annual revenue 70 billion or ge. >> wow. >> annual revenue of $110 billion. >> that is amazing. >> that is amazing. third stock, ball corporation. packager. it's an overweight from a

neutral. the company's doing a deal, buying a uk based company and approved by regulators. they like the risk-reward even more now. $79 target. not a a sexy stoke b y stock, b if you make money -- >> the analyst thinks the acquisition is sexy. the return on investment could be north of 9%. they think that's pretty good. cowen is upgrading fortinet. price target gets rised to 37, better than expected win rates and outpacing its valuation, not reflecting the growth it's seeing and 2016 guidance, 22 to 23% looks doable. >> the security stocks kind of all over the place. interesting to see where this one goes. your under the radar smaller cap names is advanced drainage

systems. the company talked about last hour but nothing to do with his call. pipes and drains, you heard the bullish case, there's been some accounting out there but friend of show tom whetenhall said it is investable again because they have largely addressed the accounting issues and impact was minimal from that restatement and no impact on the cash balance of the company. $20 target. made a strong bullish case because oil prices have come down. input costs are lower and margins should go up. i did not he was going to recommend this stock. >> you know what the pe is? 80. 80 for a stock that's down 30% over the past year. what are you paying for? hopefully a lot of growth but who knows. >> put that in your drain pipe and smoke it. >> forget the millennials are

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major averages continue to move employeer here. we had been in positive

territory for most of the session. it's the industrials and material stocks that seem to be the big drag here. boeing and dupont the biggest when it comes to the dow. s&p 500 is lower by four points. you can see we had been higher throughout the session. nasdaq, just holding on to positive territory but had been negative and worst in the s&p 500, chemical companies at this point. >> thank you. mcken zi study showing buyers over the 60 year mark could be the biggest spenders. jan rogers a consultant and jason dorsey, generational genetics co-founder. why jason, do you think that advertisers are so focused on the 25-year-old cohort or so?

>> well, for a few reasons, most of all we're up for grabs, we have the least established loyalty, trend setters and people look to us as the future. we don't necessarily have the money, still live with our mom. we're increasingly earning money and spending more money. it's been the 18 to 34 -- >> i thought you weren't spending more money because you're spending more money on your student debt? >> we are drowning in student debt, it is an emotional and check anchor for us, us spending more money doesn't mean we're outspending other generations, we're sexy and young and ones driving it but ultimately we're seeing older generations are still leading spending power. a new study we just did with global cash card found 5 million working mel lyillennials do not have a checking account. >> he's sexy and young and we're going to bring it home for the hold guys, pal.

>> only had me on because i'm old, right. >> you're sexy and hot and smart and got the money, man. >> i'm the leading edge. we were the biggest spenders and -- >> now we are, right? >> the numbers on automobile sales two thirds of new cars bought in the u.s. were bought by people my age. >> millennials don't buy. they lease. they are the leasingest generation ever. or uber. use twice as often as we do and buy things we don't buy. >> why don't more marketers target the baby boomers and people that's got the money and spends the money? >> it's just starting again. they always did and fell off a little bit thinking that the millennials were going to take that over. they are saving too much to be the next generation and more on experiences and not spending it on stuff and when they start spending on stuff we'll go back to marketing to them. >> they sell us viagra and

prostate drugs, that's all i see. jason, we're going back. they are going to sell us stuff gn. >> do i see a turn here where marketers will start spending more to reach people like me who do things other than take viagra and prostate drugs by the way? >> i didn't know that, that's shocking. >> i'm oversharing, jason. >> that was a little too much. thanks. what i do want to point out, we're not buying things right now, we're renting and leasing, and however, our data is proving this out, once we get married and have kids, both of which we're doing later than before, we will start spending. but right now we've had a toughen tri into the workforce and haven't built any nest egg. our nest egg is our parents but it is finally starting to turn. in the u.s. millennials more than any other generation support their parents financially, one of the studies we just did showed that. boomers are spending the money but millennials we'll get there.

>> we know they are going to win, we know the date when there's going to be more millennials than there are boomers and not because there's more of them being born. >> we're going to have you guys back, that was too much fun. jason dorsey and janua rogers, thank you very much nks do. donald trump has just let the meeting with the gop, amid the decision about whether or not he's going to stick to the pledge of backing whoever the nominee is as we get closer and talks about a potential contested convention at some point. donald trump was meeting with the republican national committee, this was a surprise meeting after 2:00 and at this point we don't know the results of it but knowing donald trump we'll hear something at some point. and the mystery continues and the drama continues when it comes to the republican convention and republican nominee. he's trailing in wisconsin,

that's one of the -- >> anybody coin the term trumpian yet? >> i have heard it. >> this is trimumpastic. >> "closing bell" starts right now. hi, everybody, welcome to "closing bell" i'm kelly evans. >> and i'm bill griffeth, one more hour left in the first quarter of 2016. crazy day. there's a new report out that says the global banking system faces disruption that could cost 30% of u.s. bank jobs over the next decade. we have details on that rather troubling story for that industry at least coming up. >> and google bought nest but the unit could be a major place for major pr headaches. tesla shares are popping as