>> 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 customers line up to order the

new model three ahead of tonight's unveiling. the line is longer for the tesla 3 than it is for the apple se today. we'll tell you how to play the tesla announcement without buying tesla stock. that's coming up a little bit. >> i did see pictures of people with tents popped waiting to sign up for teslas. let's start with the digital disruption facing our nation's banks, hours ago the u.s. controller of the currency sounded the alarm on the risks financial technologies pose to banks saying what we're trying to encourage is responsible innovation. >> this coming just as citigroup is out with new research claiming that the banking industry could lose up to 30% of its jobs in the next ten years due to the rise of financial technology companies. we turned mike santoli on this following the story. what did you find? >> both of those things you mentioned, the concern about the rapid growth and unregulated

areas and potential loss of jobs is because there's really been this gold rush of financial technology investments, something like $20 billion in investment just last year. it's probably the single biggest area of new venture capital investment outside of basic web stuff. it's obviously attacking things like mobile payments and bit coin and block chain related things and any number of back office financial advisory type things. this 30% potential loss in jobs equates to 3% annualized for the next ten years. that would be an acceleration off the 2% loss in u.s. banking jobs over the past few years. what this is telling you, it's not just a hangover from the crisis and element with big banks having to adjust, it's more core to what's going on with the industry. >> it seems like traditional finance for wall street banking acknowledges this. goldman just bought honest dollar, a few different things like that going on and occ comes out with the warning that says when it comes to innovation, not so fast. >> specifically on the lending

side. this peer to peer lending is one thing they would have to worry about. not having traditional underwritten loans. new platforms out there where you have average people, acting as the lender. i think that's probably what they are getting at. it's not necessarily going to hollow out out of banking but everyone is concerned with it and i think there's two ways, two stock charts that i like to look at to show you how important financial technology is. some of the best stocks the last couple of years, jack henry, they help banks automate the different processes and eliminate things like branches, branches down 7% from the peak, down a couple percent last year. that's probably going to continue. >> that will probably accelerate, where i was going to go. on the customer service side of the whole thing, many more people are doing online banking and you don't need the human tellers. >> td bank and others were making their name of saying we're open on saturdays and

nobody cares about that anymore. they really the branches were meant to push the product -- >> not as if a text message is innovative but online banking and mobile apps, i can understand how that disrupts the branches. if you look at prosper financial, different platforms which connect peer to peer so to speak, the rates on those have been backing up, the losses have actually been a little bit worse than people thought. i wonder if in a way this will end up being a lot of excitement over a whole form of business that's not in banks' best interest. >> at least this iteration does not seem if it's gaining traction. look at lending club, not been a very successful ipo. all of these things are industry experimenting with the new platforms. the real takeaway, traditional banking is in for a real huge and probably painful adjustment when it comes to these different

areas. >> true. >> financial crisis or not, as you pointed out. >> see you later. as we head in the last hour of trade for the first quarter for 2016, let's look where we stand with the leading and lagging dow components. best performers this year to date, verizon caterpillar and walmart. a real cross section of industries, telecom leading the way. >> for the year up 15%. don't look there for woes about the market sell-off. and the worst goldman sachs, we just talked about the challenges for financials and boeing which we spoke about yesterday, some job cuts happening in seattle and american express -- >> sort of lost its way here, big customers and still trying to find its footing here. the financials, they've been among the worst performers this year. >> and all of those companies down 10% this quarter. let's talk about this in the closing bell exchange with heather hughes here at post nine.

keith bliss from cuttone and company. and rick santelli. do you bet on the winners or losers? >> last year's winners have become this year's loser, health care lagging and some large value names have done very well. i think you may see a continued shift if not already at a smaller growth stocks companies into large value sector. that is a shift that is definitely still in favor and play ahead of earnings season. i know we have another hour to wrap up what has been a phenomenal quarter in a blink of an eye up eefr 7% in the last month. >> phenomenal half quarter. we were down and it was almost precisely the midpoint. february 11th when the major averages bottomed, same thing for oil. we've had quite a rally in that time. so what do you make of this first quarter and what does it tell you about the second quarter coming up? >> the sloppiness is something we'll deal with throughout the

year. maybe not to the extreme we saw from the bottoming in february and then the rally bark to where we are now. the rally came from people pressing their bets and all of a sudden there was a bid into the market and shorts got cleared out and rallied on its own. that is still working through the market. personally i think that i see the market right now as being somewhat stable until we get to the earnings which start on april 11th but i see real downsides and pit falls to the market that could happen when you look at the macro data that's occurred and atlanta fed reliesed the first quarter gdp down and personal spending revised down to 1.8%. gas prices now hitting $4 a gallon again in florida. there's real headwinds and earnings are due to be poor for first quarter. >> as we start to talk about tomorrow morning the jobs report comes out. how do you think the market is positioned into that? >> they are positioned to look at tomorrow's job report the way

many jobs reports have turned out over the last couple of years. jobs close to 200 and unemployment rate artificially excellent by every stretch as it hovers just under 5%. but whether it's the kansas city fed or janet yellen herself, they probably don't put full stock in this. they are joining the legions of trainers that have understood the dynamic. i don't think it's going to give you good clues. the fed can hang their hat on the improvement, whether they can take credit for it or not is debatable. i think the wage side isn't going to change much. and we don't pay much attention to fundamentals. s&p lowers the outlook to negative joining moody's who have done it this month as well. nobody cares. what was at the heart of that, negative outlook? well the fact they are not turning into a consumption driven economy fast enough. both those dynamics, great high

poj they cease but they are difficult to accomplish, everybody is playing the currency game which puts the best level since september green back and euro best level since october. we'll continue a post janet speech to see the dollar weaker and that is what traders are watching. >> that's helping the markets right now and the u.s. at least having a weaker dollar. i think that will help the earnings results when we hear them. it may not have happened in q4 until just over the past few days manifest inflation with the u.s. dollar. but the key tomorrow will be on wage growth, not necessarily how many people are unemployed looking at that number but wage growth will be key going forward. >> great point. want to note for everybody permanent to the discussion we're having, 10-year yield,

1.7%, seems a disappointment for tomorrow or what do you make of that? >> what it's been setting up for the fact that janet yellen will remain dovish and what she says carries the weight. the trade has been easy, you watch oil and watch the vix and listen to janet yellen and off you go. >> is it that simple? >> it is -- >> we're starting to see a slight decoupling there. and do you think that will continue into the second quarter? >> look where wti is right now, we've determined in the trading patterns, $40 a barrel is that magic number. as long as wti hovers around that point you're going to get uncertainty in the market and you're going to have a trade that moves side ways. the one thing about rates, financial companies both banks and nonbanks have become a pretty large percentage again

overnight. the fact that the 10-yield is below 2% even though it did steepen a little bit. it's going to keep pressure on that sector and keep pressure on the market. >> we've got to go at this point. always good to see you. thank you all for joining us, rick, we'll see you later as well. we have a news alert on donald trump. >> donald trump just had a meeting with reince priebus and tweeted we had a nice meeting and we'll bring the party together. just got off the phone with a trump adviser who gave a little context for this meeting. remember donald trump a few days hired a veteran republican operative lobbyist campaign official and this was the beginning of manfort's effort to bring discussions between the trump campaign and republican national committee about things like the convention and financing of general election activities and that's what this

was about, rather than the comments that donald trump made to anderson cooper the other day about not being committed to this pledge to support the republican nominee it's not him. it was conceived in the spirit of donald trump binning eginnin integrate with the republican party. >> how about of a sea change are we talking about, if they've gone from raising their hands to i will support the nominee to backing away from that? >> i don't think it really matters that much. if donald trump wins the delegates to be nominated at the republican convention in cleveland and he hasn't done that, he has a path to do that. he has to keep winning. if he does that, whether or not ted cruz comes out and says i support him or john kasich comes out and i support him, i don't think that matters all that much. you do have a question whether the inconstitutional elements of the republican party align with him. people like paul ryan, speaker

of the house, mitch mcconnell, the majority leader in the senate, that has some significance in how the senate house candidates interact makes a difference. the particular endorsements of individual candidates, not so much. >> it will be interesting to see. thank you so much, john harwood out of washington. >> it's a little more than 45 minutes to go here and market has moved negative this afternoon but only down about 36 points. the nasdaq is hanging into positive territory of 1.5%. up next, just because you build it, doesn't mean kuflts will necessarily come, apple's new ipad pro and iphone se hit stores today. we'll check out the scene. it's not too busy. >> also ahead, trouble at the underperforming alphabet division nest. you're watching cnbc, first in business worldwide.

welcome back, ibm is trading

higher today, $168 from $140. you see ibm is at $150. they cited strong customer growth at the watson unit. morgan stanley also says it has more confidence in the full year earnings estimates so a gain of 1.74% for big blue. >> saying that watson bet is beginning to pay off. >> new but somewhat familiar apple products hitting the stores today. josh lipton went to check out demand at an apple location in pal loal to. how is it looking there? >> reporter: he's an engineer by training but tim cook is also a skilled salesman and here today putting those skills to use here at this apple store. he was here, talking to customers and posing for selfies and talking about the new products. the star of the show today that we've been talking about is that iphone se, small powerful,

relatively cheap at $399. and cook is targeting a few different groups with this new device, one we know there are apple iphone fans who prefer that 4-inch form factor. in $399 it can appeal to more price conscious consumers and caught up to android fans and they were at the store today and heard about the se because they are thinking about making the switch now to apple. >> for the products i guess it's really cheap, fits better in my pocket and i think that i use the phone basically going skiing or biking and smaller size fits better in the pocket. >> reporter: now, i'll tell you guys whenever i talk to ceo tim cook about the health of the iphone franchise he brings up a record number of anroid switchers he's seeing.

>> josh, thanks very much. josh lipton in palo alto. alphabet's bet on nest labs could be in trouble considered an under performance based on initial goals. adding to that the acquisition of drop cam has been a bumpy one as well. former ceo greg duffy has been expressing discontent with the next ceo, was this a dumb move for alphabet. >> recode's associate mark bergen written a new story on nest's troubled market. for me it was surprising to realize how much of the story with nest was drop cam, which now has been rebranded as the nest cam. can nest itself now live up to expectations as those camera sales have been slowing? >> yeah, thanks for having me.

the drop cam seems to be a really bad marriage. there was a huge culture clash, a lot of the team -- the original team, two founders have left and there was a lot of collision with tony, the ceo of nest. when he was brought on to google, he was a former apple executive and designed the ipod and meant to be infused google with apple's hardware sensibility and give them a lot of strengths to complete with apple. so far that hasn't happened yet. >> would we be scrutinizing the acquisition of nest if they hadn't paid $3.2 million. what would they -- $340 million in revenue last year, that's a pretty sizable number by itself. when you consider how much they paid for the company, now it's considered an under performer. >> right, i mean it is hard to assess and 340 -- around that number is pretty impressive for the industry. you think about the smart home industry is pretty young, much younger than people anticipated

and nest is clearly the leader. they sell hardware devices and they do software and services and those businesses are taking a long time to take off. part of the price tag paid was for talent. you had key engineers that work at apple. the bigger question is if engineers and executives will stay. >> also the question mark, goes to it's shifted around the way it presents its financials and distributes its money internally and this bet on nest, including drop cam was an important one and it turns out the revenue there pretty much is that whole other line that they are now reporting as they start to break things out a little bit more. it's really important for the company, isn't it, to get this particular one right? >> it is. the other key factor here is google fiber, which is their broadband business. that's been growing at the pretty steady clip. i wouldn't be surprised if that business exceeded nest, maybe not this year but possibly in the next couple of years. >> and of course the problems with nest and some of the rancor

that has been there called into question the structure of the alphabet business model, whether this is a experiment that's not going to work on growing pains. how do you assess this? >> no one talked about this. they talk about the berkshire hathaway model and basically they are asking the ceos to run their own companies but they are still reporting up to larry and still reporting under the alphabet structure. and so i think that they are still trying to figure out what that means, if these companies will be fully independent and what happens if they go under. i don't think anyone has an answer right now. >> they need a -- if you go back and look at berkshire, it's the fact you can find c's candy which took little investment over the years, threw off tons of cash and hugely scaleable.

>> let's face it berkshire h hathaway buys proven companies, not a lot of unproven new technology and new business models and untried ceos or products. there is that big difference between the two. >> yeah, they are not self-driving cars that warren buffett is invested in and no one tried this smarthome technology and there are a lot of people that believe it will be the future, connected devices will be all around us. nest is pretty well positioned although apple and amazon are clearly two of the biggest competitors and a lot of people inside alphabet are concerned what amazon and apple are doing. >> mark, thanks for joining us. >> thanks, mark. >> thanks for having me. mark bergen, re/code. seven minutes left in the trading session and dow down 14 points. closing out for the dow at least sort of a neutral first quarter

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welcome back, you're looking at the dow jones industrial average, it's ifrnting not we're down 13 points but in the green much of the day and have gone negative. the yield on the 10-year treasury and we're wait on the jobs report tomorrow. >> exactly. >> for now we're winding down the quarter. it time to check in with our retail roundtable. a finance student at george mason university and military wife and mother julie werner who joined an investment club in the '80s and learned the market and built her dream home using the money she made and saved over the years. >> a success story. >> thank you so much for joining us. >> thank you. >> we'll begin with you, tell us some of your picks in this market and just exactly what's on your mind here as we come out of a whacky v-shaped performance here in q1? >> in my opinion you have to

look where others are not, two stocks that i like are fca, fiat chrysler and blackberry. fca for their strategic moves. i like what sergio has been doing. definitely approved of the ferrari spinoff and like what they are doing maximizing their jeep brand. very popular in the states. and i'm excited for the jeep pickup truck later in i believe late 2016 or early 2017. >> right. >> then for blackberry, kind of default back to the sony hack, what did they default too? blackberrys as well as the recent apple versus fbi case, encryption is going to be a very big consumer desire and i feel that blackberry has an opportunity to recapture some of the market that they lost to apple, sam sung and others. >> interesting. viewers of our show know i'm still a blackberry user and big

proponent, half jokingly about all of that but you make an interesting case for blackberry not the traditional one. a lot of people voting john chen can turn this around with compelling products and the technology but of course, we have always known the security was always a big selling point for blackberry. do you know it will be enough to bring people back to the company? >> i don't think it will be enough but if you look what mr. chen has been doing with most recent phone, the blackberry passport, it's a big selling point because they are able to sell a premium product, similar to how apple has its appeal. that premium feel, but also be able to give consumers that productivity workhorse with the big battery and great e-mail and other productivity suites that people are so sought after that are reliable. >> jep, julie, you're sticking with tiffany among others, aren't you?

>> i am, it's a favorite company of mine. sometimes the stock is not necessarily a favorite so when it goes up i take money off the table. now it looks like it's back down in more of a better buy range. >> so the sell-off is making it more attractive to you? >> exact zbli. >> tell us about the house you built. >> that really is a dream story. you know, in 1984 i knew nothing about the stock market. i joined a better investing investment club and learned how to invest wisely. i've always been a really good saver of money. then i learned how to use that money to invest in stocks and so i started out very small, buying one share of three different companies enrolled in the dividend reinvestment program. the rest is history. the more money i got the more i invested in good solid quality companies and then after 30 years of investing and getting close to retirement, we wanted to build our dream home.

so i took some money off the table along the way, especially last spring and into the summer and then the point is in 2007 when the market was a little bit high and -- excuse me, in '07 and also a couple of years ago when the market was a little high, i took some profits and stuck those in cash if the market declined i could use it or in this case apply to the dream home. >> i know you're not necessarily trying to be a market timer. how do you assess conditions today? >> well, you know, who knows to be perfectly honest but the bull market is getting long in the tooth. there's a lot of uncertainty out there. the summertime is usually pretty volatile time. i don't know whether this down turn we've had will continue and turn this into an official bear market but we will have a bear market, i can guarantee you that. >> the stock you didn't get to

ali was act ivision blizzard. why this one, how does that fit the category? >> activision blizzard acquired king.com the maker of candy crush and they have over 500 million online users of their products and services for all of the different types of games from the console to the computer. e sports as an industry has been growing exponentially and amazon's acquisition twitch.tv. from my point of view, you see activision more recently acquiring mlg.tv which is the e sports version of the nba, for example, and it's incredible if you look at the success stories that have come out of the e

esports teams that play. in my opinion most notably call of duty and you have teams like optic gaming and face clan that started as little hobbies for these small groups of people and turned this into multimillion dollar organizations. it's incredible, the growth. >> a great story. thank you so much. julie, whose other picks, con grats again on the house. >> thank you very much. >> we have breaking news an active shooter situation in virginia. sue herrera. >> what has happened is that a greyhound bus station in richmond, virginia, there was a shooter in the past tense. he has been apprehended. what happened was the shooting suspect was taken into custody by police. however, we do know that two troopers and one civilian was hurt in that incident. they have been transported to the hospital.

according to the state police, the civilian was a woman, a female but once again the shooter has been taken into custody, subdued and taken into custody. no longer an active shooter situation. back to you. >> all right, we can be glad for that, thank you, sue. >> we're heading into the last half hour of trade with the dow down 13 points. ending what has been a rather eventful first quarter for 2016. we have a leading trader joining us to tell us what he's watching into the close on this final trading day of the quarter. stay tuned. at mfs investment management, we believe in the power of active management. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management.

at ally bank, no branches equals great rates. it's a fact. kind of like bill splitting equals nitpicking.

but i only had a salad. it was a buffalo chicken salad. salad.

>> we are in the last half hour and i'm on the floor now, it can now be told, next most interesting man in the world. what's with the scruff? >> you know -- >> we've got one minute. >> i didn't shave over the long weekend and figured let me try it. i trimmed it under here and over there. i'll see what it looks like. >> thanks for joining us. >> a crazy first quarter. what do you think we do go into the second quarter now? >> i think you've got to prepare yourself for weakness ahead.

i think we're going into a weak earnings season and april typically tends to be a weak month. you can go back two or three or four years and see always what happens in april. i don't think it's going on a disaster. some of that is priced in. individual names depending on how much they hit or miss, right. >> how much will oil play into -- we're starting to see a little decoupling. >> it's going to start to decouple. it should, it's been too connected. as the dollar weakens oil will do better and stocks will do better. until that, until we get some real clarity and listen, i think april is off the table and june is starting to be a question now. therefore we when we more clarity we'll get a better idea where the dollar going and oil is going. >> you're not doing a man mountain thing, are you? >> no, but it has to fill in a little bit. >> looking good. >> i can tell the audience, you grow a nice beard too. we'll see if that survives your

next august vacation. 22 minutes to go. we'll see if the dow can turn positive on the bell. nasdaq up 8. coming up, why banks could be a safer investment than real estate. columnist ken brown makes his case. business backlash to north carolina lgbt law continues to mount. prominent leaders have signed a letter asking for a full repeal. we'll talk to one of those ceos. . all across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. and in syracuse, where imagination is in production. let us help grow your company's tomorrow - today - at business.ny.gov [ that's a good thing, eligible for medicare?

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- you take your car in for a tune-up, but when's the last time you took you in for a tune-up?

go see your doctor, get to know your numbers, and learn how to prevent problems before those warning lights start flashing. the more you know. >> really to look at it practically speaking, nobody wanted me to fail. everybody's income livelihood were tied up in lehman stock, there was no ib sentive to have me fail. do i think at some point it was easier for me to be the public face of the firm and as a result i was associated with the entire performance? yeah, absolutely and i talk about that. but i don't think there was any kind of conspiracy theory or idea that people wanted me to fail. >> if he called you and said i want you to work with me again, would you? >> absolutely not. but that has nothing to do with dick, just i have no interest in that type of life at this point.

i have a very different life. i'm very happy and -- >> and i believe her. i think erin is at peace with herself. >> but she's so talented and so driven that you just -- so young, she's somebody -- she mentions in the book, if i had kind of realized i was off balance earlier in my career, maybe i could have come out and been a successful executive while still having that family life. >> if you did not see kelly's interview with erin callan seek it out and watch the whole thing. it is a wonderful interview. >> thank you. set aside a few minutes time. >> it was long but compelling. >> it's interesting because investors in the fed are paralyzed with fear of a return to that financial crisis. so says our next guest too back from overseas to explain why people hate the banks and still love real estate. >> we welcome back ken brown, wall street journal columnist now -- >> that's right. >> you have your own column.

good for you. >> that's dangerous. >> but we're still afraid we're going back to 2008 or that's the mindset in your view of how we view the banks. >> no, it's amazing, you come back after years, i was in asia and people have looked ahead, except for a few things, they looked ahead and they come back, everyone hates the banks still, they are a mess and fines coming through. it's really astonishing, the backward looking nature of it. >> it reminds me of being here in the 2009 years after the crisis and recession and all of a sudden there was a company called uber. thank god for silicon valley, at least. >> exactly. my first column came out today, i'm a columnist now not an editor. the point of it was, here's the bank, everyone hates them and they are in decent shape and look like they did ten or 15 years ago, good dividends, steady cash flow, big balance

sheets. then i contrast it with real estate, which everything loves. >> we love it but that may be the riskier play you say. >> they've doubled since the bottom, right. >> talking kmer shal? >> apartment buildings and office buildings and hoteled, doubled off the bottom. they are just getting this attention from overseas and investors and what happens when prices go up, yields go down. there's a connection between bond yields and real estate yields and for the first time the real estate yields have come down to the point where they look expensive versus bonds. >> they were super compelling, you can get 8 or 10% cap rates. of a good friend who works into real estate and we got into a nerdy argument, things are so frothy, this can't have more than a few months left in it and here we are a few years later. >> little did we know. there are good fundamentals in real estate and that's fine. but if i were to choose right now, i think probably the smart

longer term choice would probably be banks. >> your time in asia when you were running the asian bureau for the wall street journal, you point out that some of those economies have moved on where we have not. why do you think we're still captivated by or fearful? >> is it the campaign trail? >> maybe it's the campaign but your point is interesting, people you know, uber came along, right, a alibaba came alg in china. all of these countries and india has new leadership. there's excitement there. even europe has moved on, maybe not in the best way but the idea we're so fixated on when is the fed going to raise 25 more basis points, i understand this is all important -- >> is it possible you should have gone to the west coast instead of back? >> that would have been fine, right? >> correct. >> we love the column.

it's called unhedged. i thought it was unhinged for a second. >> i knew you were going to say that. >> it's a great piece, thank you. >> great to have you back and relearning to navigate manhattan rapid transit as well here. >> exactly. tesla's model three debuting tonight, more than 20% over the past month in anticipation, deirdre has been looking at ways to play it without buying stocks specifically, right? >> it may be too late to get in on tesla now and history shows that the stock tends to lose ground one week after a new model unveiling. but there are a few other ways to play it. look to the electric car maker suppliers and competitors. we look for stocks that outperformed one week after tesla new model unveilings. here's what we found, basically fancy mirrors for tesla cars and

stock moved higher in every occasion and returned 4.5% on average. others names, you see see from the graphic which parts they supply. one month later, gentexas and amphenol expand their games. other is to bet on the rivals, like honda and toyota. the thinking is it may get folks excited about other electric or hybrid vehicles. so while tesla doesn't necessarily rise, you see them outperform the broader markets and tesla itself. at least the release puts a spotlight on new electric vehicles. tonight's unveiling may be a sell the news event. there are proxy plays and may want to keep them in mind. back over to you. >> thank you very much, deirdre.

the dow is only down two points. >> art cashin just signaled, $1.2 billion to buy the market on close orders going into the close. we'll see what impact that has as we close things out for the quarter. as we approach another earnings season, lindsey bell warns to expect earnings estimates to be down but silver lining could be higher than average beat rates. she'll talk about that when we come back. everhas a number.olicy but not every insurance company understands the life behind it. for those who've served and the families that have supported them, we offer our best service in return.

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>> eight minutes left in the trade session with the dow down two and a half points, lindsey be bell, we're heading to another earnings season where expectations are low. >> they are low, earnings are expected to decline 7.5%. i feel like a broken record, i come on the last several quarters to discuss earnings expectations with you both and they've been pretty down. i keep saying this is going to be the worst quarterly earnings growth rate since 2009. it keeps getting pushed out quarter after quarter. let's hope this is the trough. >> what do we think is going to signal that? the energy earnings by measure

you have down 5.5%, negative -- >> negative dollar value for first time in our history of collecting the data. >> so unusual. i guess once they fall that much, do you think maybe we can start to turn things here or is that it? >> at some point you think comps will get better, right? >> yes, exactly, the second half of next year, the comps get easier -- >> second half of next year -- >> this year, 2016, we'll be up against negative earnings growth. as far as this quarter is concerned, energy earnings are expected to be down over 100%. six other sectors will show declining growth rates. we haven't seen that since 2009 either. expectations were reduced so significantly going into this quter because what we saw happen in the first part of the year -- >> i mentioned before the break there might be a silver lining the beat rates might be higher? >> only 15 companies reported but 13 of 15 or 86% have beat.

the other thing i find very positive, we're seeing really good numbers out of the consumer discretionary sector, you have fedex, carnival cruise lines. that's the sector that's going to drive this quarter as it has for the last several quarters with double digit growth. >> i know it's a larger discussion but it's fascinating that corporate profits and gdp can be down 15% and the numbers we're talking about, materials down 19 or 20% but not in a recession. it's so unusual. it's going to be really interesting how this all kind of -- this ball of string becomes unwound. >> if you look at the multiple, the s&p, it's trading almost 17.5 times on next 12-month basis which is above the 16 times historically average. that could mean that numbers have come down a little too low. >> so it's so high, it's a tricky period. thank you for joining us. >> no problem. >> all right, we'll come back with a closing count done in just a moment. >> after the bell, apple

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obviously somebody was waiting in the weeds waiting to sop up those buyers there. and we are heading a billt lowe. let's review how we did for first quarter. the dow itself, crazy first quarter, bottomed out on february 11th and when all is said and done, gain of 1.4%. wti had a better time, oil in the quarter, up about 5% when all was said and done. and little bit less than that but still, a decent quarter comeback after the big declines we had seen. the yield on the 10-year today is hitting a multiweek low which adds to the decline we've seen for the whole quarter here. we were up 2.2 plus at the beginning and now at 1.77 or thereabouts. the dollar index has started to move lower since the janet yellen speech and we'll watch that carefully to see what impact that has and what that serves to do as well, price of

gold, gold had its best quarter since 1986. unbelievable. >> my eyes popped out when i saw that, quite amazing. >> 1233 on gold. >> you'll hit all of the major points. the most important story was the dollar weakness because we saw that in february and saw that again when the fmoc returned dovish in their commentary and that drove a lot of activity, it drove the commodity and drove oil and gold up as well. that was the major story. the dovish fed we have seen and the collapse in volatility, the vix has simply collapsed in the last few weeks notably because of the fmoc turning more dovish. >> one pleasant surprise for quarter, ibm up 10% after completely horrendous year last year. ibm nice gainer here, up 10%.

>> dow comes through again. in the next two weeks it's going to be the opec meeting. [ bell ringing ] >> also tomorrow the jobs number, we'll have it live for you at 8:30 a.m. on cnbc. ir magazines ringing the big board. hour two of "the closing bell" with kelly evans. see you tomorrow, kel. >> welcome, stocks couldn't go out with the gain to close out the quaurer, the dow down 26 points, well off the lows but nevertheless a decline. the s&p down 4. nasdaq, 4870. we'll talk about that in a moment. it's been the weakest quarter for trading revenue for the banks since 2009 and we'll talk about the broader impact of the

banking woes on the economy coming up. first though joining me on today's panel, senior markets commentators michael santoli and stephanie link from global asset management. steve grasso also joining us off the floor here in just a moment. lots of stock specific things to talk about, from ibm to ge fit bit was having an interesting day but an opportunity to say what did we just live through in the first quarter? >> it seemed you have going to have a global rupture and the melt up that came afterward, mostly an exhale. and most stocks were up in first quarter, even though index is above the flat line. all bonds were up.

all of these things were base beingally back where we were, slow and steady growth and stocks not cheap but not overvalued and here we are. >> i'm so glad we ended on a high note. there was a lot of positive things that happened in march. number one was stability of the dollar. that stabilized oil and i think that was a really -- those two things, just calmed the volatility, we were really like every day in january and february it seemed like we were up 5%, down 5% in crude and that's very -- it's unsettling as a portfolio manager in terms of what to do. i'm excited about that. hopefully these trends aren't going to continue. i want to see manufacturing the data over the last couple of weeks and see that continue to be strong that is also a confidence booster -- >> chicago pmi back into expansion territory, good sign but once we start the month we'll get the national manufacturing and service index and jobs report tomorrow morning, that kind of thing.

it's interesting in this rally, which is years long now, including the most -- really sharp sell-offs and rebounds almost like they are market tornadoes of some sort. why is that? why is it we seem to absolutely panic and then come rip roaring back in. >> i don't know it's normal. i do think what's been very important is positioning. you seem to have a herding instinct and people are looking at the same correlations and trends get overplayed on a short term basis because you don't have a lot of steady inflow of new money into the stock market. it really is the same pile getting shifted back and forth. you have stock buybacks that act as ballast and not drivers and then what you do get when you have the rally, the safe stuff that rallies the most. you don't have a lot of people saying i have a huge risk

appetite. it's bond like stocks. >> that was true, we were showing you outperformers of the dow which included -- you're looking at the s&p, more to the point about the tornadoes and real sharp downs and ups. as we know year to date, telecom is up and ver rise zon up 17%. walmart, those are those kinds of companies. >> very interesting first quarter because you had had the utilities and telecom and consumer staples hit a new high every day. but at the same time, it was nice to see the industrials and energy stocks actually bounce from bottoms and some are them are up 30 frrs in the lows. the issue about the tornado conversation, people are skeptical about the economy are we growing or or are we not? >> and the data is all over the

place. >> talk about nominal growth. inflation is almost nil in parts of the world. you're near the zero line even if you think you're growing today. it is kind of close to on a business level and corporate level not growing much at all. >> some of the trading all time highs include mcdonald's and t.j. maxxand general mills and coke okay debuted in 1919 and in keeping with that theme there, but the valuation question remains. >> absolutely, i think when you have a 10-year trading at 177 and have a fed that's not committed to doing very much, this kind of market wants quality, great balance sheets, no leverage and some dividend and all of these companies are growing dividends and steady consistent performers, you can have these in your portfolio and then you dabble in the cyclecals as well and look at the value

versus growth and that's what a lot of people are doing in terms of positioning. >> we welcome steve grasso off the floor. zbll mine you can see and kenny's is a little gray. >> let's talk about some turnaround stories playing out today. ibm, morgan stanley up to $160 from $140, excited about watson. >> i'm excited about watson too but i don't think it's enough to turn around ibm. it's what stef was just saying, more about the dividend story with ibm than anything else. it's not a growth company. they are shrinking and sales have been shrinking for quarter after quarter after quarter. >> is there a growth story or growth kernel within that. >> i don't know, it's been basically a secular short in my mind. druk miller is also there and he's been talking a great game -- >> let's look at general

electric, trading at highs since 2008 today and got a couple of different things going on, trying to get rid of the designation for the capital unit and die investing different businesses, they did close negative today but going back to 2008 we're talking about an outperformance. the bull case on ge, it's the current version on microsoft. for ten years it was a sale at $30. for ge in the last several years it's been a sale in the high 20s but now it's broken above that range and things are starting to fold together with the fund. amountal story too. >> they are shedding things you don't understand why they didn't own them to begin with. we have to be careful as to what they are going to buy because probably halliburton or baker hughes, they are inquisitive. it will be interesting to see how it plays out. i think with the names you

mentioned, it's also the dollar. the dollar is coming down and that will be helpful in terms of guidance in second half of the year. >> one thing to mention too, s&p cutting china's credit rating to negative that was the source of the tornado that took the market down in the first quarter, is there a risk that comes back to the floor here? >> i do think -- china has led the market completely from start to finish. if you doubt china, you're going to doubt the overall market, when we think it's quasistable, they rush in and buy the s&p. >> they are happy to spend up for the u.s. companies, bolstering the share prices there. canadian prime minister in washington today for the nuclear security summit. he's also talking trade and futd you're of u.s./canada relations with our susan li. >> trade has been a contentious

issue in this election cycle. what does that mean for the u.s.'s largest trade partner of canada, when their economy relies so heavily on the amount of goods they sell and trade with the united states both front-runners have said the other one renegotiate or cancel nafta. and i asked justin truddeau if he's concerned. >> i think we have to understand the trade is ultimately good, not just for our countries but businesses and workers. we know engaging with the world in a constructive positive way leads to good jobs and good growth. i'm not worried that we're going to suddenly reopen nafta or other trade deals. when you reopen a little bit, they all tend to unravel and it's too important for both of our economies to continue to have a strong trading relationship. >> canada's economy does not

trade, suffered recession last year. oil prices have come down and a big part, big chunk of the canadian economy, 20% of exports. what about the current global conditions? here's what the prime minister had to say. >> the big challenges we're facing around the world is lower growth rates than we need. what we're positioning ourselves is on the investment side of the investment versus austerity debate. we believe confident optimistic countries should be investing in their future. that's exactly what we're doing. we have an extremely good fiscal positioning of the lowest debt to gdp ratio and low interest rates as everyone does. this is a time to be investing in the kinds of -- kinds of solutions and kinds of growth that we're going to need in the coming years. >> and his administration is spending for growth, forecasting the largest deficit for canada

since the global financial crisis. when it comes to politics, i asked who would he want to work most with when it comes to the white house. didn't want to be drawn into this debate eaand said he will cooperate with whomever the americans vote for. back to you. >> will he make good deals? thank you so much. it was a great interview. our susan li speaking with the canadian prime minister. trans canada is suing the u.s., by the way and turns around and buys columbia pipeline. it feels the transaction from harper to trudeau for their business has been a poor one. >> so far, yes. it was interesting to hear his comments, obviously he's running a country that where free trade is less controversial. they are a net winner in nafta and idea of being open to the world. i feel he can sound very broad minded about the whole thing and let's talk common sense here because they don't always -- >> already been elected.

>> for him he's got the liberty of doing that and it's pretty much 99% rhetoric, even though they are not going to get done whatever our candidates would like to get down or say they'll get done. it still makes for great headlines. >> and still focused on energy. they have to open up to the world to diversify their economy. >> and people keep waiting for the shoe to drop and continue to say the nonperforming loans will not be a problem, certainly something to watch. >> steve, got a guest for the nonfarm payrolls. >> you're always wrong either way. if it is a strong number it puts yellen in question. everything she did will be overturned by that one thing and you have to look at the s&p cash and i think that's the way you have to look at it. >> thank you for leaving with no mo mo -- be sure to stick around to catch steve's beard on fast money at 5:00.

torsten slok saying there's only one thing that can derail a rally. find out what that is next hour. not just banks that could be feeling the pain, the broader impact of the slowdown in investment banking is next and apple's 4-inch iphone se hits stores and fans weren't lining up for the new products, the u.s. where it's set to make the biggest splash anyway. you're watching cnbc, first in business worldwide. ay 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.

welcome back, with breaking news on starwoods. kate? >> it is walking away from the all cash deal that it had bid to take over starwood for $14.2 billion that they are walking abay from this deal. this is dow jones quoting sources, marriott and starwood did potentially have a deal and anbang came in with the all cash over and currently walking away. starwood and marriott both down 4%. dow jones quoting sources, back over to you. >> interesting to watch shares of starwood and marriott trading down. there's reasons for that.

and but what do you make of this news that it's going to be anbang who's walking away? >> so many questions were raised about the ability to finance the deal and national security approvals that would be required that perhaps it came too thorny. that started to sound it wasn't likely. it was obvious starwood stock should go down because it was baked in there could be a higher value bid and marriott had been rallying on the chance maybe it wasn't going to have to have to buy starwood or spend the money. >> that's why stephanie, people in the last week ago as they kept rach eted the offer, marriott should walk away. they are left holding the bag. >> it makes an interesting story. they don't have to put a higher bid out there. the bid they already did put out was sinner gis tick. and this company could be a power house down the road. wait and see how the dust

settles kind of thing but it is interesting from a marriott point of view to go in and buy that. >> they have been making the case why it makes sense to volt into the number one position and take on the international assets of starwood. you can see the shares move lower because it's would be an expensive deal. >> it would be an expensive deal but starwood has just these wonderful properties and really the high end and the chinese market which we know is growing double digits and will for the foreseeable future. their pipeline 70% is almost china. they want that scale as you mentioned and also the pricing power. >> i don't think the strategic logic has ever been requested, it's probably where you are in the cycle and if it is too much to pay. some people thought if they walk away, $450 million break-up fee and becomes a cleaner story. >> we'll see what happens. bank trading revenue expected to be down an average of 27% on the

year. some of the worst performers, morgan stanley and credit suisse and goldman down 30%. could trading revenue have a broader impact on the economy. christopher thornberg and marty mosby. welcome to you both. chris, just start with you, what are the broader ramifications from the huge decline in raiding revenue? >> the real question is there some other auger of worst economic performance and the answer is no. what's happening with the banks is more about the markets than the real economy. the real economy is doing fine, consumers continue to grow and housing is chugging along and even exports have been nice and steady despite the high dollar. really this is all about that big financial meltdown we saw the last couple of months and it's already going away. >> do you agree that this is a story that's unique to the banks and doesn't have any broader

consequences? >> when you look at the trading side of these revenues, actually what people are missing is why you have the year over year declines, you have double digit increase from the fourth quarter. we're not seeing any sequential pressure and there isn't any spillover from the trading side of these revenue streams. >> it comes at a time when we're hearing multiple different reports about the pressures on banks from everything from the interest rate environment to technology and the way that might be going, obviously we spoke about the city report on employment there, bank branches and all of the different things happening. so do you think this is just going to be something that they can kind of ride out? >> it's interesting it's like a perfect storm, like not only the business but equity markets and investment banking and pipeline. it was absolutely been totally dry this year. there's a lot of things and you have the fed. people wondering, why did the stocks out of the gate fall 30%. these are all of the reasons.

now they've recovered a little bit but still many of them are trading at .7, .8 tangible book value. i'm kind of wondering if this is the trough bottom in first quarter for the banks. i'm not saying it's going to get great but doesn't get any worse. now is the time to take a look. >> on the trading side, these big banks are going through this process of figuring out if it's worth the trouble. highly regulated and takes a lot of capital to put against any trading business. do they need to simplify more? a lot of that has been done in the last few years and if you see morgan stanley doing more layoffs they are surrendering a volatile piece of the business. >> the point was made the financials have come to represent a large part of the s&p 500 and we have parts of the economy that are quite dependent especially right here in new rk city where we are on their strong performance. bonuses were down, that tax revenue was down this year.

are we so sure there will be no impact from this? >> well, probably locally in new york you might feel the impact on this. my personal perspective, i think you're going to see this have an impact on the economy through the credit markets and today credit markets have been fine. banks are going lending and bond market outside of the high yield debt is doing pretty well as well. this is going to be more of a short term situation and in the next couple of months you'll see it blow over and earnings will come back for these banks. >> marty, what's the case longer term for the banks as you see it? >> we definitely believe as we get past the inflection point here in the first quarter, we should be looking at much better earnings in the second third and fourth quarters. while we look at the money center banks and say they are going to 3 to 10% below market expectation in first quarter, we think they'll be 5 to 10% in the periods there after. we think there's a sharp rebound pipe lines and investment banking are still strong.

what we've heard is there's a pause not reduction in demand. the pause gets unlifted as we go forward. >> what about the employment aspect of this? if we can expect head counts to decline, is that something that will come back to haunt the banks or something you think is exactly what investors want to see. >> investors do want to see increased deficiencies because profitability levels still need to recapture the lost ground prior to what we went through in the financial crisis and all of this extra compliance and regulation. we will still see efficiency and some technology, we'll see some layoffs but all in all what we're going to see is growth in sales, less back office, all because of productivity gains. >> all right. they are certainly hoping, thanks for joining us. >> pleasure to be here. >> apple making a big bet on a small phone. will the se be the new cash cow? and protesters and business

executives speaking out against a north carolina law that gets rid of anti-discrimination protections for lgbt people. we'll talk to the ceo of one company based in the state and what this all means for his stores closing bell will be right back. are you new to medicare? thinking about retiring? do you have the coverage you need? now's the time to get on a path that could be right for you... with unitedhealthcare medicare solutions. call today to learn about the kinds of coverage we offer, including aarp medicarecomplete plans insured through unitedhealthcare. these medicare advantage plans can combine parts a and b, your hospital and doctor coverage... with part d prescription drug coverage, and extra benefits... all in one complete plan... for a low monthly premium, or in some areas no plan premium at all. unitedhealthcare doesn't stop there.

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like aarp medicarecomplete. let's get you on the right path. call unitedhealthcare today. apple's latest iphone se launching today, not quite the same crowds and lines we're used to seeing. the launch last september on the

left. today's se launch on the right, with someone who did show up was tim cook. he stopped by a couple of hours ago while the u.s. launch wasn't up to usual expectations, some analysts are hoping the 4-inch device will be better referred overseas and help the presence in emerging market. a buy rating on apple, $120 price target and so what are your thoughts about the empty stores today? >> you know, this was going to be a primary device for emerging markets, if you look at apple's strategy, they are trying to increase presence in increasing markets, especially india and china. we never thought it was going to be a big deal for the western market. that's why when you compare the lines clearly we're not going to see the level of excitement we've seen for previous versions. >> what about gauge china sales, how are we going to do that and see if this is expanding the company's presence there? >> we've seen data about online

searches that happen when the new phone was launched, the searches were really apple saw pretty strong growth in the online searches from china and india at that time. we'll see how the sales report apple reports on the 25th of this month and we'll get insights on how they've done with this product. it's essentially going tosh the strategy to increase -- and for that we'll have to stay focused on emerging markets and make deal with the space. >> i have a question with regard to the quarter because you mentioned it. we all expect that iphone sales or iphone units are going to be down double digits, 15 to 20% year over year. at the same time there's a chance we can actually get a capital return story in terms of higher dividend and higher buyback kind of thing. which one wins out in your view in the short term? >> i think they'll do -- we'll get both on the unit -- you're

right, probably a 10 to 20% decline on a year over year basis but they'll target double digit growth and buyback program. all of those things should help th stock. at this point we're going into summer and a lot of focus will start moving on to iphone 7, what the unit volumes will look like and how much traction it will get. and what feature set it's going to have. the debate will change over the next two or tloo months. capital return is expected, we should get that in april. >> you mention the iphone 7, a lot of people thought the current release of today's launch was something apple had to do. there's so many phones out there that are due for upgrade before too long, if they wanted to have this option of the latest futures on a smaller phone. are we going to get to the point and i'm been pushing this for a while where we don't make that big of a deal out of launches, maybe the empty stores today

show maybe the wow factor is not as strong as it was? you're absolutely right, we've gotten to a point where smartphone penetration is pretty high ten as going to be more of a revenue company versus a growth that we've seen in the last few years. we may see growth in the emerging markets and mid-year or low end of the phones but at the same time, apple's focus is going to be how to monetize with various services and have people buy a phone every couple of years and i think focus will move to that versus big product cycles we've gotten used to in the past. >> the company trading around 109, the target is 120. we'll see how emerging markets respond. >> thanks for joining us. >> absolutely. >> time for a cnbc news update. >> here's what's happening at this hour. an update on that developing story out of richmond. a shooting at the greyhound bus station in richmond, the local

nbc affiliate citing state state police says one trooper was killed along with a suspect. four others were wounded and taken to the hospital. bus service in the area has been canceled. we should note another trooper was shot as well. president obama meeting with xi jinping in washington. the president says the two leaders discussed the threat of north korea and agreed to begin implementing tough sanctions against that country. gop front-runner donald trump holding a surprise meeting with rnc officials in washington. in a twitter post, he had a nice meeting and looks forward to bringing the party together. fan duel and draft kings are suspending contests telling that to espn, the voluntary decision comes after months of discussion between the sites and ncaa and

member institutions and various state legislaturlegislatures. kelly, back to you. >> thank you so much, sue. it will be interesting to see whether if fantasy can get legalization in new york, the big market, will all of these moves they are making to try to placate play off. >> they are going to try absolutely everything to have that be the case. it seems as if the stance of new york state is not necessarily very receptive to that idea. they are not asking these companies to come back and make a best offer in terms of how to sneak through. >> but they legalized ufc -- >> without a doubt, it's not out of the question but i do think -- this industry just maybe eight months ago was going to be taking over, right? and now it's really -- >> draft kings was a $3 billion valuation, one of those unicorns. >> the internet of things is getting a new edition, the smart fitting room. how it benefits consumers and retailers. starbucks and hilton and kellogg's are the latest

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this tweet pertains to the unveiling of the model 3 tonight. it was scheduled for 8:30 p.m. pacific. he said online ordering will now open the 7:30 p.m. pacific to ensure no server overload. that's 10:30 eastern time. the presentation he says still at its scheduled time but as we know many people have expressed interest in being one of the first in the queue to make sure they get the subsidy advantage before they hit the sales market in which it might go away. shares of tesla up 1%. we spoke earlier about many other ways to play the story. chief executives from more than 100 companies are demanding north carolina reappeal a new law, say it is bad for business and north carolina is one of many battlegrounds on the issue. scott cohen joins frus silicon valley now. >> this will be our tenth year

ranking the states in our annual america top states for business study. it used to be about cost but lately more about where businesses can go to find talented and skilled workers and that's the machb point of the letter from 100 plus ceos to pat mckrorry, we believe hb2 will make it challenging for businesses across the state to recruit and retain the best and brightest workers. the law which has sparked protest overrides local anti-discrimination ordinances and tells trans gender residents which public bathrooms they can use. the ceo of cheg is among those who signed onto the letter. >> i think what ceos are trying to do is represent their communities and their audiences and customers and the fact of the matter is when a state is legs lating discrimination against any group, that shouldn't be okay. >> governor mckrorry calls the

criticisms overblown and says his state is one of inclusiveness. it is something we measure in our top states for business ranking. north carolina finished ninth overall last year but 33rd for quality of life because the state lacks statewide anti-discrimination protections. now a new jersey pharmaceutical company bray burn tells cnbc it is rethinking a $20 million expansion it planned in north carolina. you're going to be hearing more about this in the weeks and months to come. mississippi state senate just passed a law that opponents say is even more negative than the north carolina law. and our annual top states for business ranking tenth year coming out this summer. >> scott, thank you so much. north carolina lieutenant governor was on squawk on the street yesterday and wasn't concerned about the impact on the state's economy. >> these business leaders out

crying right now have not even read the bill. i talked to many of them who admit they haven't read the bill. the business community in north carolina has loved it for years. charlotte is one of the best business communities in america. this is a big fantasy, happened when houston had the same ordinances and same cast of characters coming out saying they were going to pull out of houston. they are still in business. >> joining us right now is one of the business owner who's signed the human rights campaign open letter, mitchell gold of home furnishings brand, headquarters in north carolina. did you read the bill? >> i have not read the whole entire bill but gotten good summaries of it and i think the lieutenant government is misleading about that. and as well as the governor. and people love to come to north carolina because of great businesses like mine replacements of bank of america or many others, it's those companies that are inclusive but

it is not the government. >> what happens now that this bill has passed. what does it mean in north carolina and for your business? >> the big problem is for recruiting, when you want to recruit talent, creative talent, they take a second look whether or not they want to come to a state like north carolina that has this exclusionary legislation, when these guys talk about inexclusion, they are talking out of both sides of their mouth. i want to say one other thing, even though i'm a business person, this legislation is not just about business, this is about what if you're a 15-year-old and struggling with injure gender identity and on the news you have to see politicians, people you should be looking up to, the governor and see these people talking about how you are broken and not fit to use the restroom that you want and have that personal dignity, how you aren't protected in the workplace or in a hotel or whatever. it's outrageous that young kids should have to go through this kind of turmoil in life and see

that from their leaders. >> mitchell, from the time perspective, why is this coming out now? >> i think that's -- the real question is it's happening because the movement for full legal and spirit you'll lgbt equality, it's moved forward so quickly and it largely has happened because people know us know. they know their kids and family friends. and there's been such a move forward and the courts who are part of the checks and balances of our democracy and say no, you can't discriminate, you're entitled to equal protection, they have moved full equality. fundamentally christians hate the ideas that gays will have an equal place in the workplace and two gay guys will be married because they think little joe or sally will be gay because i'm married to my great husband in north carolina. they don't understand that it's the way you're born, it's not some random odd choice to make. so there's a real big reaction

and the lieutenant governor, i mean if you google and do some research on his religious beliefs he's back in the dark ages. he's got a world view of christianity that is really 1,000 years old. that's what he wants to take these poor innocent kids too. >> real quickly. >> where does it go next? you publicized your points of view. do you reach out to anybody else in government to change what's going on there? >> we're always do that but the reality is it will happen in the courts. this is a pure abuse of the constitutional rights of me, of the 14 or 15-year-old kid, a trans gender person in this state, it's a pure abuse of our civil rights and it will go to the courts and like marriage equality in north carolina worked so hard to have an amendment that i could not get married and spent $3 million on it, now i have marriage equality in the state and -- >> that must have been a nice wedding? >> my wedding wasn't $3 million, but it was expensive but wasn't that. >> thank you for joining us.

mitchell gold. >> it was just a matter of time. we have smart phones and smart cars and smart homes, now a smart fitting room and it's coming to a retailer near you. we'll explain next. before the band separated over unknown creative differences. [ crash ] and reunited three decades later for a tour that sold out in three minutes. and your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. scalability by cisco. orchestration by cdw.

>> it does seem like everything is smart, smart phones and smart car and now smart fitting room. courtney reagan is at the french american luxury symposium in new york city with a gust working on

integrating technology with high end retail. >> reporter: good afternoon. i'm joined experimental retail technology like a smart fitting room. what is a smart fitting room? and why is ralph lauren using yours? >> when was the last time you were in a fitting room and it was a great experience. >> never. >> you're in there and maybe you want some help, no one is around or someone asks can i get this for you you don't know where they went. the way the smart fitting room works, when you walk in the beautiful mirror turns into a touch screen and from there you can request other colors and sizes and the mirror identifys what you brought in using rfid. it goes to an associate who brings you the stuff immediately. the reason we focused on the fitting room by the way is because if you get someone into a fitting room in did retail, t chance they convert is two thirds but they spent 40% of the

time being totally inefficient. this is a way to delight the customer and make it so the associate is way more effective. >> i assume that is the goal for a ralph lauren using the fitting rooms to get that customer to convert and buy more items? >> totally. it's a good point is so much technology companies approach retail and they are like, this is a really good experience, try it out. that's kind of the wrong approach. you fall into the trap of putting holograms in your store. you should be focusing on roi. if it doesn't pay for itself, you shouldn't put it in and if it doesn't solve a customer problem, you shouldn't implement it. >> kelly has a question for you. >> this is kelly back at post nine. thanks for joining us. you kind of answered my question earlier saying you use rfid and not the internet. i hear smart fitting room, is it watching me, i don't want it

hacked. you might be good about this but others will get the idea and be -- what do you think? >> i think privacy is a really important issue. especially when things become more intelligent. the way we are, we're very clear, there are no cameras -- i want to say this a zillion times, no cameras in the fitting room. you're an anonymous person that goes in and we know when you want help. you do know the associate's name when you make the request. what this technology is doing, rehumanizing the experience versus dehumanizing it, which is really important. i think a big future part of retail, you're not trying to remove associates at all but make them more effective and empower them using technology. foreca for example, ralph lauren and make your request, the associate sees everything else in the fitting room, they can say, i know you asked for this jacket but here's pumps that would look great and belt. if you need me i'm a touch away

right in the mirror. >> and all of this is very important for retailers, there's a lot more we could talk about but we're out of time. thank you so much for joining us. the ceo and founder of oak. back down to you downtown at post nine. >> i have had a couple uncomfortable fitting room experiences where you need help and don't want to ask for it. do i shout at them? stick a hand under the door? this could be interesting. thank you both. now, high tech makeover is coming from your celluloid heroes, as they fight to get consumers off the couch into theaters, a high tech experience you won't get at home. and be sure to tune in to squawk alley tom frieden will join in a first on cnbc interview to talk zika, the latest science on virus, 11:40 a.m. eastern time. don't miss it. by debating our research to find the best investments.

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welcome back. we have two key stories developing right now. kate rogers has details on both. hi, kate. >> hi, kelly, that's right. anbang and starwood. anbang walking way from its proposed bid for starwood, an all carin deal at nearly $14

billion. dow jones siting sources says starwood will revert back to marriott. thanks to marriott's most recent offer of $79.53 a share or nearly $13.6 billion. reuters says anbang never followed through to make the deal binding and never give a reason for walking away. starwood shareholders are scheduled to vote on this april 8th. still both down by more than 4%, marriott nearly 5. now we're going to switch gears over to urban outfitters. they have good news. they're giving good guidance on comp net sells in the low single digits. this is in their filing. the street had been looking for a decline of nearly half a percent. urban is up by nearly 3% in after hours trade, back to you over to you. >> thank you. guys, just briefly, on both of these stories or either one, you know, now we've heard from anbang. we've heard from starwood. well need to hear from marriott. >> starwood never recommended the anbang offer. so never kind of literally set

aside the marriott bid. >> true. >> presumably it goes ahead as planned. >> what about urban outfitters? up 3%? >> they've done a lot in terms of restructuring and trying to figure out the right product. the consumer is very choosy, as we know. clearly, this is good news that they're actually going a little better than expected. i think this is an they're is very hard to invest in. it's very hit or miss. i still like the offprice guys. and i still like the high end. >> figure out what teens are going to want in two weeks is not a good investing strategy? >> i can't even figure out what my 9-year-old wants every day. >> the movie theater of the future when we come back. the pursuit of healthier.

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welcome back. streaming video on demand. words that strike fear into movie theater operators. some are fighting back with an experience you cannot get ate home. julia boorstin has more. >> reporter: this three-screen is called the barco escape. it's launching tomorrow at this regal theater owned by aeg. it's submersive surround sound and outfitted the lobby with fast-changing high def disflays. the number of tickets sold in the u.s. has declined 7% since 2009.

parentally thanks to the explosion of premium content available at home. tech titan shawn parker is working on screening room to allow people to watch movies at home the very day they debut in theaters. plus nearly half of all u.s. homes are projected to own a 4-k tv by 2020. which is why barco is in talks with all of the theater chains. >> we'll be in more than 100 by the end of this year. so we're well on our way. we're in the middle of a $100 million raise and trying to partner with the right friends and ecosystem. >> reporter: this new technology joining the 4 dx theater already here at the cineplex with seats that move and wind and smells piped in. so kelly, the more your living room feels like a movie theater, the more high-tech movie theaters will become. back over to you. >> julia, thank you. i don't know about those smells and being bumped around in a chair. but it's funny. that movie screen looks like a virtual reality headset the way

we were showing it there. i wonder if that's the ultimate disrupter. >> i feel like they have to completely overwhelm you with sensation in order to have any kind of a future. what is amazing too, it was only a few years ago that they were coaxing the industry to do digital distribution, in other words, not film prints being sent to thousands of theaters. they have accelerated the evolution. >> you're fighting all the in home theaters. you're trying to get people to leave their homes. and that's really hard. that's a big, big challenge. i'm not sure that smells are going to do it. but at least it's worth a shot. i get why they're doing it for sure. >> similarly dolby when we were in san francisco and you saw them testing the virtual reality technology. but dolby is trying to focus on where it can offer competitive advantage in the theater as well. it has to do with using lace others to get the color darker, the side of the screen there. things like that he says yeah, people are willing to pay up a couple extra bucks per ticket for that kind of experience. but this is getting pretty pricey too. >> they're going to need to pay up or charge higher because

you've got 57% decline in actual traffic trends. and that's probably only going to get worse as you go through. >> exactly. it's really only that price inflation that has the box office higher. all right. we'll see you at the movies, guys. thank you for joining me. mike and stephanie closing bell. >> "fast money" startings right now. live from the nasdaq markets overlooking times square. timothy geithner, steven grasso, and guy adami. tonight on "fast," if history is any indication, energy is about to have a one of its biggest quarters of the year we'll tell you what has trade source excited. plus, if you missed out on the rally, no need to fear. we've got four stocks ready to get you back in the game. and later, take a look at this video. the crowds came out to catch a glimpse of get this, not the new iphone, but tesla's new model 3. could this be tesla's apple moment? we'll tell you what it could mean for investors. the markets officially putting an end to the first quarter. the dow and s&p posting their