norman the golfer, so it's an exclusive home in a private community. it's like your own private four seasons. new episode tonight at 10:00, "secret lives." >> thank you. >> thank you for watching "power lunch." "closing bell" starts right now. welcome to "closing bell." i'm kayla tausche in for kelly evans at the new york stock exchange. >> and i'm david spade. [ laughter ] >> no, i'm david spade. >> i'm boy george, i guess. go to twitter, you'll see what we're talking about. today's top story, the government smacking down big deals. the department of justice looking to block a major oil merger between baker hughes and halliburton. you probably already know the $160 pfizer/allergen deal is dead after the treasury revealed new riles two days ago.

can big deals still get down? our man david faber will join us on that in just a moment here. >> after the bell, the ceo of merck will tell us why he's been avoiding tax inversions, that's an inclusive interview and proven to be a good strategy. >> it looked like he was being left out of the party, but he's looking good right now. shares of constellation brands popping against fueled by the success of the mexican beer brands. the ceo will join us exclusively to talk about whether donald trump's negative rhetoric towards mexico could be a risk factor for his business. >> i would think with the number one and two imported beers from mexico, it probably is, but we'll hearty it straight from him in a bit. new rules for financial advisers that could give a boost to advisers like betterment, and the ceo will join us. the justice department is suing to block the acquisition

of baker hughes. david faber has the story. >> yeah, of course, yet another suit filed by the doj to try to stop a deal, and a couple companies that are willing to go to court trying to assert their right to say no, we don't believe our deal will be -- and of course, along with the news it would seek to stop these two companies, which by the way, have been trying to getting to for almost 18 months. they are going to have to court, it would seem to see if a judge will agree with their side of the story. as for the doj's side of the story, well, listen, there's 23 markets we think where this merger would cause a substantial lessening of competition, and they do tend to be fairly strong in tir language in these complaints and press releases. the doj and assistant attorney general bill baer cease i've

neff seen so many problems in so many markets. halliburton wants the united states to agree to a -- an array of entanglements that i have ever seen. there's two thingse has never seen and array of entanglements. you'll hear hall burteneden and baker piano hughes argue that the doj is ignoring fundamental information about the divestiture plan which would be good for ge, for example, which would be the buyer of a lot of these assets, they believe that schlumberger has a lot of these areas, then do this combination, and in fact the combination would only enhance the competition to this one big player that is out there. there is a huge breakup fee in this deal, but it doesn't appear it's -- to be paid any time

soon. it does apt that the two companies are in sync. they want they tend to demonstrate the do gentlewoman has underestimated the highly competitive nature of the industry, the many benefits of the proposed combination, and the sufficiency of the divest turs. once completed the transaction will allow customers to -- which they say is especially important now due to the state of the energy industry, and yes, they sea, we will get an impartial judicial review. by the way, people may be wondering why are the two stocks up? they are up because of the oil prices. it's not really related to the deal. there are very few of the risk arbiters that we talk about. these are more moving on fundamentals. they will trade to a certain extent, the spread long ago blew out, but that's why both stocks are up, which is sometimes curious when you do see the doj

say, we are coming to get you. >> and david, others the course of this deal being in the review process, those stocks had gone down because of what was happening with oil, but there seemed to be a sense this would usher in a big wave of energy m & a, the sector was in such a distress, that antitrust wouldn't play to prominently, but do you get a issens that it's going quiet because of this? or do you think there won't be a meaningful impact? >> you know, i think that you've got to be aware of after this point, given the actions that have been taken, whether it goes back to our pattern to buy time warner cable some time back, the current action again office depot/staples, which doesn't seem to be going that well for the government right now, and a number of other deals, that colors the thoughts of any company thinking about doing an in-market transaction that involves a lot of horrid zone

integratib horizontal, and he said, i'm out there i could buy something, but i'm not going to, because a lot of the guys out there are paying $80 a barrel to get stuff out of ground, that's their break-even. that's the reason why, not any antitrust. get your other manila folder. the other story, you broke it last night of pfizer walking away from the $160 billion takeover of allergen allergan, i this was it was very fair to say. we reported on it almost immediately after 5:00 on monday, and said it seemed to be aimed squarely at tanking this deal. it did succeed in doing that. why? it was the inclusion of the three-year look-back provision that had the effect of saying all those deals don't count towards the overall size, and

therefore, when it would get together with pfizer, it no longer would qualify as an inversion under the rules, and pfizer would have stayed a u.s. taxpayer. that was a surprise to both companies. when we did talk to brent saunders of allergan, he believe he was and they were specifically targeted by the treasury these rules was designed i think very specifically to target this deal. i don't believe, based on initial review, it impacts any other deal in virtually any other circumstance. >> the question, of course, what does it mean overall for other inversions. stop them in their tracks in terms of earnings strippings and the like.

many of our community, where you do have quite a few that are are at a disadvantage. a lot of candidates talk about building walls, at keeping people in, and basically allowing the u.s. to become uncompetitive globally. i'm not sure that's a good thing. temples because, bill and kayla, the results conceivably more companies buying our own. it has happen already, and it may continue. >> is there any indication that corporate tax reform is on the way? that's really what this comes down to. you either may it more attra attractive to stay here, or you do what they did yesterday, right? >> absolutely. i think the fail where you are of the legislative brand looks

with the executive, to get anything doing is part of the result from what some people would say as overreach most importantly i think for many companies, in particular pfizer, which is why they wanted to do this deal, it's to get access to the overseas cash. we have so many that cash overseas and don't want to bring it back, because they don't want to pay another talks on it, but you tell me. when will we see corporate tax reform. >> that's a question for john harwood. >> 2018 maybe. >> they keep pushing it out further. david, good job as always. see you later. >> yeah. meantime the fed minutes were out about an hour ago, showing that policy makers debated last month about an april rate hike, but held off due to global fears, or at least that's the anticipation. let's talk about that in our closing exchange. mark temperaturer from strategic

wealth, steve grasso from stuart frankel and rick santelli busting out of the chicago, ready to talk about this i'm sure as well. mark temperature pper, are you those earnings or fed policy? >> it's a tough call. the earnings picture is pretty bleak, the decline of over 8%. that would be the first time since '08-'09. i think what's more alarming is revenues continue to decline. so we're looking at what could possibly be the fifth consecutive quarter, where revenues are projected to decline by over 1%. it's very difficult for the market to move forward when revenues are declining. when you're seeing top-line growth diminishing, investors

tend to lose confidence. when investors lose confidence in the profit outlook, valuations come down. we have seen the forward p.e. multiple going from 14r6 1/2 to 16 1/2, which leads me to feel that the market right now is in risky territory. >> but we still have grasso, about a week before earnings season begins in earnest, now the minutes are behind us. we're still operating on relatively low volume. what does the market do before people really start homing in on earnings? >> the first question you asked mark was, is it more about yellen or is it more about basically earnings and the marketplace and individual names. we're in that sweet spot for stocks. if you look at where we are, we ended the quarter right around here. i don't think we can move substantively higher from here or even break down from here, unless you see maybe yellen take a different stance or oil. i think the market still relies

on oil, and we had those niche tore numbers out today, and we took out a huge lead, if you overlay the s&p with oil today, you'll see that's what led us. sweet spot right now, oil at $40 roughly, either side, 37 and change right now, 38. if it stays right here, the market can stay right here. if we barack down, the market breaks down, it's that simple. >> rim, no surprise, the minutes told us there was a likely combination, there were those who felt it was time, let's get going, but others felt there were too many risk factors still in place that a rate hike mike aggravate. i'm sure you read them. >> absolutely. when my kids were also, we would sit down and have a family of five meeting and it was a democratic process and talk about the family issues, but in the end it was my opinion that mattered, okay? i think it was the same with the

fed. we can make a big deal about fractious, but i'm not buying it. it's the head coach that comes off locker room and only what comes out of that mouth counts. i will still with that, whether it's janet yellen ben bernanke or alan greenspan i great with steve that it is a sweet spot. steve said make she won't change her chance. i think we can count on them changing that stance almost every meeting, but the problem is they probably won't raise a lot until after the election. i think that does afford a sweet spot. take it to the ecderivative. we're sitting at an important level, the dollar index at 94, we're seeing a key level an around 114, 115. it's all the same trade from different tangents. if that dollar weakens on all those three scenarios, that sweet spot is going to get a lot sweeter. >> all right. we'll see what happening.

guys, we've got to go, thank you all for your thoughts. appreciate it. minutes left. actually the dow holding on to some gains at the moment, up 85 appointments, but the best gainer, the nasdaq, look at that, up of 4 points. >> yes, indeed. constellation brands ceo speaks with us exclusively about the spirit maker's earnings beat and whether a minimum wage increase could help its business. also ahead, what the government as new rules for financial advisers unveiled today, aimed at protecting investors. what that means for brokerages, insurance firms, asset managers, and the new breed of so-called robo-advisers. investors have been flocking to it lately. we'll talk about that um canning up. you're watching cnbc, first in business worldwide. ♪ in new york state, we believe tomorrow starts today.

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they found out who's been who? cking into our network. guess. i don't know, some kids in a basement? you watch too many movies. who? a small business in china. a business? they work nine to five. they take lunch hours. like a job? like a job. we tracked them. how did we do that? we have some new guys defending our network.

new guys? well, they're not that new. they've been defending things for a long time. [ digital typewriting ] it's not just security. it's defense. bae systems. putting it back above 4900. oil is also higher.

we had had a gain of almost 5% for both -- well, wti especially. we're back to $37 and change. that's helping some of the oil companies themselves. we had that drop in weekly inventories, which is a surprise. that pushed those stocks higher. hess corp up, conoco phillips we showed earlier. baker hughes, and hess also doing well. yes. on the news that they had been sued by the doj, interestingly. that's not a move you traditionally see when a merger like thain gets abandoned. which is strong demand. more on that, and we'll talk about, among other things the presidential race and whether that could affect the bottom line. rob sands, exclusively the

president and ceo of constellation. good to see you again, rob. >> yeah, good to see you guys. >> welcome back. >> thanks. >> there's a theory going around that the increase in the minimum wage, like in california, to $15 an hour could benefit a company likes yours. do you buy that? is that a benefit for your company? i think po templeal putting more hands in the money of consumers could theoretically be good for the business, on the other hand if it was destruct i have to the economy overall, it could be negative. so i'm going to say wee neutral on that, bill. >> there's been a lot of discussion on the campaign trail about mexico and trade with

mexico and po templeally a 35% tariff on imports. obviously you guys have the number one, the number two beer imports from mexico. what would happen to the price of corona if you had to pay a 35% tariff? would consumers be happy about that? >> well, i don't think consumers would be happy about that. obviously the price of coronno would have to go up? >> my personal opinion is that's ago extremely unlikely and various i would say we don't believe that it's likely we should see a tariff of this nature put on mexican imports. i will say what you're not saying. you don't think donald trump is going to become president of the united states? >> i'm not going to speculate on that one.

>> if you were being requested which of the candidates do you think would be the best? >> i would say that i could go either way. i think that's a real judgment call right now. all of them have some -- and upsetting the appear the cart. what policies do you think are needed? >> i think it's a strong position on the economy and one of the topics is corporate tax reform. i think that would be very positive for the more mon in the hands, will be good for the people who work for us.

>> speaking of good for business, your earnings for the most recent quarter are doing a doozy on your stock today. it's up about 5%, of course your stock has just been multiplying over t last several years, but i think guidance for 2017 was slightly below consensus. i'm wondering to what you would attribute that and what investors should expect over the next several quarters. >> i think our guidance was pretty much on consensus, and we're projecting a very strong year next year, you know, we gave guidance of $6.05 to $6.35 a share. that's huge earnings growth top line is tom line and bottom line growth, but our guidance is extremely strong, very well received as per your mention of

our stock price today, so the business is performing beautifully in almost every possible respect, our wine, beer and spirit business, all very strong. >> it's not just today, though. i mean, you and i've been doing this interview quarterly and your stock just keeping moving. fiveiers it was at $to how much longer do you think that kind of momentum can last for your business? >> oh, i think we've got a very strong runway in that regard. we haven't yet fully recognized all of the benefits that we will recognize when we are at full production in our breweries that we're building out at the current time. that's going to be positive in terms of driving costs our brandt are growing at double

digits, which is just positive from a sheer growth point of view. the leverage from p & l. runway room on distribution of things like our modelo especial brand. we have a lot of up side. >> we would not expect a different an from you, rob. good to see you again. thanks. >> thanks. >> constellation brands ceo joining us today. with just about a half hour before the bell and after two days of losses, the dow, s&p and nasdaq are all solidly in the green, but approaching the most important half hour. we'll see if that can hold up. and up next an airline labor union pickets in support of management. wait, what? phil lebeau has that story in a moment. later facebook is expanding the live streaming services to challenge twitter, snapchat and

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major averages are still negative for the week, but today they are solidly in the green. health care has been the sector that's been outperforming all day, but notably the bioteching have been notching gains with the ibb breaking out of this sort of two-metropolitan sideways pattern that traders have been looking at. the etf is down about 40% in the last year, but the ibb is up sharply today. some movers within it biogen is up by 5%, regen ron, amgen. harley-davidson trading lower at the first quarter sales forecast was cut, siting after a stable start to the year. harley-davidson expected to report its earnings on the 19th.

meantime share of cree are also following. you heard that story late yesterday, the l.e.d. maker preannounced quarterly results which were rely below the previous guidance and strief evidences, plaming product delays and lower commercial orders at its -- and here's something you don't see, an airline union in opposition of activists. >> this is are pilots for united airlines. altimeter is along with parr capital, a couple hedge funds trying to wage a proxy battle. the pilots were many in support of the ceo, a return to work last month. he's focused -- and overall

improving the performance. the pilots say they don't need the distraction of a proxy battle to interrupt what mu i don't see is doing. >> let oscar munos do his job so we can give a better customer service. >> we truly don't know exactly what the groups have in mind. they have yet to state any intentions on what they plan for our future, but we do know what our current ceo has planned for our future. we will support oscar and a new board to makes the changes necessary to put united back on top. they're trying to get six new members on the board of directors. this will come to a head over the next couple months at the

annual meeting. >> phil lebeau in chicago, thanks. meantime, time for a news update. sue? >> hi, bill, hi, kayla. here's what's happening. white house spokesman josh earnest in his daily brief says rupp in congress will deeply regret in, on the zika virus. earlier it said it was transfers money left over from the fight from ebola towards combatting zika. john kerry the trip put him over the miles of the most traveled secretary of state. condoleezza rice was the record holder. for an indefinite time, due to slower sales of mid size cars made at the sterling heights

plant. and merle haggard has died, he celebrated outlaws and underdogs, was known for okie from muss coggee. he cause 79 years old. that is the cnbc news update this hour, back to you. sue, thank very much. we are in the critical last half hour, the dow up 95 points right now. a leading trader will tell us what he's watching going into the close in just a few minutes. also ahead, merck's ceo speaks with us. we'll get his reaction of the pell deal scratched as a result of the crackdown on tax inversion deals. stay tuned.

joining me as we head toward the close, it edward valdez, the fed minutes, what a surprise, they argued about it, but in the end they're not going to rate raise. oil is also trading higher, what

is going on for you? >> oil is really the driving force right now. the fed has a little to do with it, but we're not surprised with it. it's going to be a tough month to justify raising rates. like janet yellen said, global situations and such, and you remember half of the s&p revenue comes from. >> what's the next catalyst for you. we've got earnings coming out about the same time? >> earnings look like they'll be a disaster across the board, so that will be a weigh on the market, but oil is rebounding, a couple weeks ago we thought we had a floor, we come into the summer months, the dry season, so i think oil stabilizes and goes up a bit. >> are you inclined to buy? >> we took money off the table earlier. we haven't got back in yet, but we're going to look.

we're going to look to get more involved before the end of the month. >> alan, thanks as always. just about 24 minutes left to go before the closing bell. the dow is still up about 92 points, s&p up by 18. the department of labor releasing new rules for financial divorces aimed at protecting small investors, but not everyone thinks the new rules are the best. we'll have that debate ahead. facebook launches an all-out assault on youtube, twitter and a bunch of tech companies, with a new hub for livid i don't. what's behind it a play on live.

welcome back. of the nasdaq 100, look at that, three are negative. how would you like tore one of the negative stocks when the nasdaq is 00 is up. let's focus on that for a moment. nvidia, netflix and --

>> and netflix just went positive. let's see if we can get everyone in the water. joins us at post 9, wield two other guests in the last hour highlight the low expectations for earnings in the next couple weeks. you're taking a different viewpoint on that, aren't you? >> i am. i am. i think the low expectations are very real and you have to consider that. the pricing basically another crisis, which i don't think we're going to have. but what's really going to control is it top-line growth. it's not seven the earnings, but where they're coming from. we'll see top line growth start to accelerate. >> outside of energy. the this morning in the side has been the strength of the dollar and increasing global navy of the revenue, but this year so far the dollar has been sliding,

do you think we could get surprise? >> watching the dollar pull back. you've got basic conditions improving, okay? you have the dollar coming back, you have oil prices rising. also companies have been working on this, addressing it, so we would see improvements even if conditions weren't improving, but they were, so yeah, i think there's a good chance we'll see some. >> are there sectors you they will do better than others? >> i think ear going to see a surprise in consumer distressary. i think consumers are starting to feel better, even the michigan survey the tick down -- you'll see spending start to grow. it's not that they can't spend, they have chosen not to, once they feel better, they're going to do better. you'ring seeing consumers movements back into the work force, which also helps. >> so when we see fed minutes say april is inappropriate because we don't want to

communicate a sense of urgency, how do you read that? >> i saw "global" a number of times. i didn't see anything that said the u.s. is in bad shape, so i think they're going to have to move, and i think you're seeing emerge sill dissension over the urgency of that. >> does the nature of the market change as soon as the fed starts to raise rates in earnest here? >> i think it improves, because i think the fed says it's phenylly on board with the economy recovers. we have a scaredy cat fed. it's depressing, everybody. when the fed says we're going to go does that cheer everybody up? >> either that our i think it scares them to death. >> that's certainly a possibility, but the underlines are you're getting better, i think that's a ratification. >> brad mcfillen, good to see you.

>> thank for having me. just 15 minutes before the close, markets are trying to shrug off two days of negativity, and they look so far like they're going to do it. >> thanks to biotech in part, right? up next how new rules aimed at protecting investors could affect wall street firms and the new breed of so-called robo-advisers. that's coming up.

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less than 15 minutes to go in the session, the dow just briefly touched a triple-digit gain, the nasdaq up 1.5% thanks largely to biotech. meanwhile, the department of labor releasing new rules today on who can advise clients about investing their retirement money and the rules that will change the way brokerages, insurance firms and some asset managers handle these accounts. >> they want they to keep their clients' best interests in mind. what a concept. mary thompson is back at cnbc global headquarters with the story. >> the industry reaction is muted. they say they need more time to analyze it. unthe so-called fiduciary rule, an adviser, broker, insurance agent or investment firm must

act in a client's best interests. this means they need to make sure investments are appropriate for the client, as well as the cost of making that investment being appropriate for the client. firms can sell appropriate investments carrying higher fees and commissions, but only if the clients know how if the agent is paid and signs a contract stating so. the standards are by april 27 with other administrative act by january of 2018. pwc's michael glaspie kiss while low-cost providers should benefit, the whole industry is going to be negatively impacted from the higher cost of compliance and lower fees. they are saying they're being

hurt because of costs are likely to make these products a harder sell under the rules. >> mary, thank you very much. we have two different viewpoints on this. john stein is ceo and founder of robo-adviser company betterment. he supports this provides, greg zikenzie, he opposed it. robo-adviser, do you always find the lowest cost investments? is that why you support this? is that what that? >> yeah, we support this rule for a lot of reasons. we've been engaged and involved with the department of labor and omb for a while supporting the rule. it's an unambiguous public good. this is one of the most exciting things to happen for investors in 40 years. what it does is restore confidence in the financial system. even if you go beyond faith in your adviser, that your divorce is acting in your best interest, if you can trust anyone who holds themselves to be an

adviser, you can trust them to be acting in your best interests, that's great for everyone seeking financial advice. >> this is just for retirement at, right? >> and greg, why do you oppose this? when you hear that an adviser now has to act in the customer's best interests, it seems like a win-win. >> we represent a lot of small broker dealers who would be offering these products and the regulatory burden on these brokers dealers will be increased. the litigation risk is much more increased. we think the offerings made to retires will be much less. the standards or the benchmarks for investing will been much higher, because the fees are much less. overall it's going to be a regulatory cost to this.

this is more the a political ploy than an actual benefit. >> but the whole point is to bring costs down. >> the point is sound, the implementation is not. >> how so? give me a for instance. the way it works now is the investment adviser only has to pick a suitable investment, no matter the cost. >> true. >> now if there's a viable alternative that is cheaper, they have to go with that one. they have to sign a contract, so they opened up a whole regulatory risk to themselves whik lowers potential fees. what products am i now able to offer? am i giving a benefit.

>> the system has involved to have these salespeople, brokers and salespeople with products involved. taking them out and making advice the core of what we do, really giving people advice that's aligned with them will reduce costs. >> why is that a good thing for betterment and your industry specifically, because your value proposition, your competitive advantage is you were a cheaper model, a cheaper alternative for the millennial or smaller investor that couldn't afford the fees or minimum investments for some of the largest -- >> we're not only cheaper, but we're better. we're aligned with our customers 100%. so this rule helps us. we're already doing it, we're already well aligned with our customers. 75% of american savers don't know whether their adviser is a real fiduciary or not, and now they have to be. that helps us. >> now what? this is going to happen whether your clients are happy about it

or not. >> well, it appears it is going to happen. is a robo-adviser going to give any kind of advice or rob off-selling products to these people based on costs, not on needs. are they going to loose that individualism. this is coming from the department of labor. you michb thought this was coming from the s.e.c. how does it get enforced? >> now it's contractual. you're creating a contract, and the litigation risk and the only way to really enforce it is the b.i.c., the best interest contract that's enforced by the courts, which is a huge, huge litigation burden, cost, you know, court congestion and the rest. we have to go at this point, but the rules were unveiled today, but probably don't take effect until next year, so i'm

sure we'll talk about it again at some point. good to see you both. up next, we'll come right back with the closing countdown. after the bell tonight, a cnbc exclusive, fresh off the collapse of the pfizer/allergan deal, we'll talk to ken phraseiers about his take on the new tax inversion rules. that should be interesting. you're watching cnbc, first in business worldwide. but i only had a salad. it was a buffalo chicken salad. salad. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain,

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i moan to say before the break, art cashin was closing out the market on closures was net-net was 550 billion to buy, that seems to have having an effect. in fact we have the chart of the dow today, and really the rally got under way in earnest after the fed minutes came out, showing that the fed, even with a lively debate at their most recent meeting, less likely to be raising rates any time soon, but here we are. the two-year know had a big note as well, as you can see, it regret -- oil today higher a

surprising draw on nevin to have and one of the standouts today, biotech has been leading the nasdaq higher. the ibb, up almost 6% right now, now at 285.61, bob? >> the important thing is it is a -- some of these are market cap weighted etfs some are just equal weighted. health care is leading today. we got those weekly -- there was a real surprise. xob. look at what happened at 10:30. some of the big names are up, so the lower inventory levels a

real pleasant surprise, so you get a situation where the oil is stabilizing. we now know that janelle yetten has the majority fomc behind her, the markets generally reacted to that positively. even if she the bickest causes of the volatility have been the federal reserve itself with the dollar quiets down, another big cause of volatility. if oil calms down, that's the second big cause of volatility. the third big cause has been china. that's still very unsettled to what's going on, but recently china has been quiet. that's why the vix has dropped so much. those three causes have been tamped down recently. >> we'll see if that continues, but right now that's the story. thanksing bob.

a rally day on the stock market, but the dow up 112 points as we head many towards the close. armstrong floor here at the dow and at the nasdaq it's the shelter pet project. the second hour of "closing bell" is coming up. good afternoon. we are at the new york stock exchange. welcome to the closing bell. bill griffeth will rejoin us in a moment. here's how we finished the dame. the nasdaq closing. the dow sees its -- it's beday since march 11th. with el did see a small dip, but

we have been climbing back to close near session highs. we will get to the market action today, but also an exclusive action with ken frazier, and get his reaction to new tax inversion rules after the collapsed merger between pfizer and allergan. joining today's panel we have mike san tolli, carol roth is also here, and for more, "fast money" trader guy adami. good to see you again, guy, but mike, what do you make of this late-day breakout. >> it was a growthier feel to the market. utilities and telecoms, they actually backed off today. you mentioned that the nasdaq is hitting a high for the year, the leadership group, biotech, even technology fully participating. we've been in this range for 2 1/2 weeks.

we just instead went sideways, and perhaps gathered up more energy. of course energy was helping once again. what do you make of this surge in confidence? the fact that all of a sudden risk seems to be back on, what's behind that? >> i think the fact -- you guys talked about it five minutes or so ago. you seem to have a fed that's pretty much all on the same page whether we like it or not. i think people take some confidence in that, and i think you got everything you needed to know when you saw the oil move. and crude oil up today 5%. as used goes, so goes the s&p. the last two days are now a wash. as we enter earnings season, this is a question you have to does yourself, what is the right multiple for the s&p in the global environment we find ourselves in.

if 120 is the number you used to earnings, that means the s&p is trading about a 17 1/2 multiple. is that right? is that fair? or should it be somewhere a bit less, given the global growth fears i think most people have. >> i mentioned that armstrong flooring rang the bell. boy, these flooring people are a lively bunch. we could hardly hear each other. >> i think guy hits the nail on the head when he talk about overall valuation, especially vis-a-vis where we're going into earnings season. i don't think the world has shifted very much. i don't think it's shifted here in the u.s., and i don't have an expectation that we are going to see these amazing numbers that all of a sudden are going to move it higher. the one place i do digree with guy, which doesn't happen very often, by the way -- >> i can't wait to hear it. >> we're all on the same page vis-a-vis the fed all on the same page. rosen kranz came out on monday

with a hawkish tone even though he's typically a dove. so it seems to me that the fed is not all on the same page. i major this will be a continued dance, we'll see a lot of volatility, given the fact that the fed can't get on the same page going into earnings season. >> but there's only one page to be had, exactly? >> there's only one vote that the market cares about now, so nothing we heard today, or even on monday with eric rosengrun really didn't ade -- for better or worse, she kind of took april off the table even though the minutes left it on there. the latest minutes did show that officials held off on bringing out an april rate hike because of the global fears, something we heard after that meeting. steve lease han has more details on what you read. i'm sure you combed through

every word today, steve. >> just about. i skipped the part where the staff talked about the financial situation, and then i went back and read it later. bill, what the fed did at the march meeting, they discussed raising interest rates in april, but most concluded that the risk to the u.s. economy from global weakness made a hike later this month a bad idea. minutes to the fed meeting in april, two wanted to raise rates, and quote, some wanted a hike in april if the economy remained on track with modest growth. the fed didn't say how many that was, but we do know several presidents in speeches after that meeting said they considered april or june a possibility. since then janet yellen makes a speech where they makes clear he sways more concerned about global risk. she also said she was worked with rates so low, the fed -- now, those same concerns showed up in the minutes in a number --

so the strategy of waiting for more economic certainty definitely carried the day at the march meeting. the cnbc wrap it up day shows that patients was well warranted sips the meeting, expectations have gone down to just a half point. when the fed met in march, the cnbc wrap it up data was down. i think stabilization, continued strong payrolls and rebounding u.s. economic growth. i've got to say, all of that seems like a tall order in a very uncertain world, kayla. >> stay with us, steve. i want guy adami's reaction to what steve said and also this quote in the minute that raising rates in april would signal a sense of urgency they did not think was appropriate. can anything about the fed be described as having a sense of urgency right now? >> listen, steve knows again, i've said this before. he's forgotten more about this stuff than i will ever know, but

word about the global outlook and stuff, and the uncertainty exists, steve, feel free to disagree, but one of my premises have been the actions of our fed have allowed or empowered ear central banks to act in kind. call it reckless or what you want, but you're seeing what's going on with the bank of japan, and it appears they're going to act ones again as if we almost created what we fear is happening now. does that make sense? >> it does a bit, but it's worth while to go back a little further. the tale of the tape is the u.s. acted very quickly, very forcefully very early. the results were that the u.s. climbed out of the hole quicker than either japan or europe did. so what happened is those guys came back, look at us and said it worked for them, why wouldn't it work for us? and there are some reasons why it's not exactly the same. what's happened is almost the reverse, guy, in the sense that

what draghi did by going more negative, and what could ykurodn japan, made it difficult. i think the shoes is a bit on the other food as the fed feels uncomfortable getting too far positive when everybody else is going more negative. >> which paints us into what i think is a box they almost -- under what set of circumstances can they get out of this situation they find themselves in? >> right. i think it's forge majeur. >> i you this -- you know, i just put that list together based on my read of the minutes. it's a heck of a list if you think about what the fed is saying to raise rates. i think your skepticism is well placed. >> even janet yellen was unible to articulate it. >> look at the conferred we've

had. she was unable to say what she's waiting for, on the other hand we don't have a set of circumstances that would seem to compel them to act. this debate totally encapsulates the ambiguous phase we're in right now. steve talks about we have tightened on a relative basis, and i do think that the stakes are a bit lower when you're talking about the next fed rate hike. i think there was some urgency to get something done last year, whereas now it's alternates more wide open. >> carol, last point. >> i think the fed couldn't forecast a rainstorm if they are standing in the middle of a rainstorm. they're says they're data dependent, but they're obviously not. to guy's point exactly we're in this vicious cycle, and certainly not a virtual cycle. we need to do something from a leadership role to normalize things so we can get back to the fundamentals, not just here, but all across the world or we're

never getting out of the cycle. >> having said this there's a prevailing feeling around wall street, that while the fed is debating when to start raising rates, that the stock market is in a sweet spot, do you agree? >> certainly trades as though it's in a sweet spot, but we'll find out, bill. we were having a conversation that earnings -- earnings at a certain point earnings matter. it's not just about eps growth, which we know can be manufactured, many companies have doen it. it's about revenue growth which isn't there. i think at a certain point, the market will say, you know what? we have this great eps growth, but we don't have the commensurate revenue growth. they're going to look at the market multiple for the s&p and maybe it should be 17 1/2, maybe it should be closer to 15, and then you can start doing the math. >> could i just point out -- >> that's the guy adami i know. >> steve? >> the guy that gets on tv to talk about the fed, i why more

than happy in what guy just said would be the central focus of what moves stocks. we moved away from the up or down of crude owl moving stocks and started focusing on revenue growth and ultimately earnings growth rather than whether a quarter point here other there with the fed was the determinant of the health of the global economy. >> amen, brother. we'll doing something on the web, and we'll go play golf and have something to drink. the rest of the crew is at "fast money." they'll be asking bank of america's top equity strategist right there for her best way to make money this earnings sees. savita subramanian. meanwhile, two blockbuster deals. now the justice justice is

trying to -- and baker hughes, we'll discuss why the government is makage aim. plus don't miss an exclusive interview with ken frazier. we'll get hess reaction, forcing pfizer to back off that decision and why he's avoided such deals in the past. plus is donald trump's presidential campaign in trouble after last night's tough primary loss in wisconsin to, larry kudlow and barney frank will weigh in later on "closing bell." don't say we didn't warn you. you're watching cnbc, first in business worldwide. [woodworker] i live in the fine details.

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we built this deal around the law, the regulations, all the notices that were put out by the treasury, and it was a highly legal construct. we followed the rules that congress set for companies to look for domicile. for the rules to be changed after the game has started to be played is a bit un-american. those were the strong words from allergan's ceo brent sasaw saunders talking to us earlier.

the impact was immediate, was pfizer and allergan did abandon their $160 billion merger. also today, the government filed an antitrust suit against halliburton's plan to acquire baker hughes. it happens the federal government has its sights on mergers and acquisition right now. joining us is mick fortuna, and martin oak ner, managing director at shm corporate navigators. gentlemen, great to have you both. martin, i want to start with you. goldman sachs pointed out in a note this morning that inversions were really only about 5% of global m & a the last few years, so the fact that treasury is putting out new rules, it's big deals for companies here in the u.s., but will it make a dent overall? >> absolutely it will. it's really indicative of the

regulatory environment. which has been highly unfavorable to the market -- in a relatively small percentage of overall deals of the ripple effect that this has and the complexity that the doj and various regulating agencies, that has played on m & a activity has had serious implications on both the costs of getting the deal done and the complexity of getting a deal done. it's had a profound impact on m & a, and the recovery since the recession began. >> nick, you're not thrilled about these new rules. why? >> no, first of all, it's congress's job to determine when and if inversion should take place. what the treasury department is doing at this point is just blocking these inversions without consideration the overall economics of the deal, so it's sort of a very crude, hard aprop to these deals the

one having to do with pfizer priced in, the merger to include the tax benefits. they didn't get the the pricing of the deal. whether or not there's economic justification for those deals. so it's not just that these are tax shifts to the foreign countries. so the problem is that congress isn't deal with that. they should be more. >> why congress is so lazy. if the realities. we have to ask yourself why are companies looking to do deals line inversions. the reason is because we do not have a competitive tax structure here in the united states. it's from us traiting to me and i would imagine to many inside the business world and outside that congress doesn't take the time to at the actual source of the problem.

>> i think you're exactly right. congress is not doing their job. we're going to lose good opportunities for companies to invest in the united states, the united states invested abroad just because congress won't do its job and now the treasury depend steps in with these hard and fast rules arguably their authority, you know, now they have a look-back period of three years, and i'm not sure that the congress ever intended to give them that authority to do that. >> martin corporate tax reform seems like a pie in the sky idea in an election year, but these reels specifically. there's a question whether they'll may american companies uncompetitive, because these foreign companies can keep acquiring to their heart's content. meanwhile -- what would you say?

interest deduckettibility, and continues to rise as a concern. with regard to corporate tax rates and interest deduckettibility and the maintenance of the carried interest tax rates for investors, you know, the ripple effect of this unfavorable regulatory environment has really hit the middle market, where the bulk of the m & a activity occurs in the u.s. we publicize very often the large-cap companies that are engaged in merger talks, but the bulk is in the middle market, and those are companies, from $20 million to a billion, and they've been faced with huge increases in regulatory costs. that haz, you know, that has created a serious issue, with regard to the level of m & a activity, and that ripples into the top-line growth that occurs and the benefits that occur, so it's put a limit on what should

be driving the u.s. economy. that's a healthy m & a environment. >> martin we've had something like $8 trillion in the last two years, it doesn't seem as if the overall environment is hostile to ideas. i wonder you talk about the mid sized companies, is it not the very size and -- that probably brought the attention on here, and just exactly how explicit pfizer's motivation was to simply look for an inversion type of deal. i mean, not saying the treasury was correct, but it seems as if it was the very size and prominence of this deal that had this rule in place. >> what's important to understand is this is indicative of the regulatory environment as a whole. 9 pfizer/allergan corporate tax inversion, you know, play, if you will, that, you know, the doj has put pressure on them to abandon, that creates a broken deal clause, i think it was $150 million. >> yes.

>> for pfizer to pay allergan, but you know, that regulatory environment has created a profound effect on m & a activity in the market. if you look at middle market private equity, since dodd/frank, they've seen their compliance costs increase dramatically, as a result of that, that increases their attention towards compliance as opposed to the attention and the capital that they've put into growing their portfolio companies. you know, and while that, you know -- while that is indicative of today's environment, we hope it changes, because the reality is that, you know, private equity and m & a activity in the large cap and middle market is what keeps the u.s. economy growing, and moving forward. >> for now companies have to get used to new rules. nick fortuna and martin oakner, thank you both for joining us. >> we have earnings. we have an alert on bed bath and beyond. seema mody? >> a von beat here by bed bath

and beyond shorting 1.85 adjusted. that's a four-crept beat. revenue also topping expectation at $3.42 billion, a lot of focus on com sales. same-source sales, up 1.7%, that is well above expectations. the retailer also initiating a quarterly dividend of 12 1/2 cents payable starting in july. you can see the stock is spiking higher after hours but 6.5%. keep in mind analysts have been warning of margin compression due to aggressive pricing, but so far seems to be a strong bead from the retailer's stock after hours. bill? >> certainly interesting they did beat in the comps, which of course will be welcome, but the fact they're initiating a dividend is also interesting, because it's a huge buyer, took on a huge -- they got a lot of criticism for it. >> the stock is down 36% in the last year, a short-term blip.

longer chart doesn't look so pretty. biggest wisconsin wins, forcing hillary clinton and donald trump to look over their shoulders. stuff next, barney frank and larry kudlow weigh in on this increasingly tight presidential race. >> in the meantime in case you haven't heard, pfizer and allergan called out of their merger. merck's ceo ken frazier will join us with his reaction to the end of that particular megamerger and how it might affect the whole industry. stay tuned for that.

the presidential race is getting tighter. >> and bernie sanders overtaking hillary clinton. now the candidates gear up for a big vote in new york. >> joining us to talk about it barney frank, and cnbc's senior contributor larry kudlow. it's frank and kudlow, or kudlow and frank? we haven't decided yet here. >> what do you make of the momentum that bernie sanders still has, and we should point out you are a supporter of hillary clinton as well, what do you make of what bernie is doing here? >> he continues to have strong support, particularly in a segment of the party, judger voters the white peel, where you

have a more liberal democratic party. remember milwaukee has a socialist mayor, the largest city in america to do that. hillary clinton's lead continues to be significant. one of few primaries he's won. hillary clinton has been the nominee of the primaries, bernie sanders of the caucuses. they are geared to help someone who has that kind of intention support among people who have frankly the time, the energy, maybe the money to go out of and do the political things. if you look going forward. i don't think the result? wisconsin will much affect the outcome. to be honest, i don't think new yorkers have spent a lot of times say, okay, wait a minute, what wisconsin was doing? i'll decide after -- if hillary clinton were to lose new york, that would be a very serious problem for her. i don't expect her to. if she wins new york, and some of the other primaries, she continues this. the fact is she has more than 2

million more votes than senator sanders, hundreds more pledged delegates, and it's very hard to see how, unless he's beating her 8 on/20 in a lot of places people don't expect -- >> in the meantime, larry, it looks like an open convention in july in cleveland. >> who knows for sure. look, i agree with one thing that barney said, i just don't think new york voters will be overly influenced by the wisconsin outcome. however, i want to give senator cruz credit. he was on message, economic growth and lower taxes, and better wages. he did a very good job. he had a better organization, on the ground, so he deserves a lot of credit. that said, it may make it slightly tougher to mr. trump, but i still think he can get to the majority. it may go down to the wire in california, but i think trump will be very strong? new york, and then later on in pennsylvania and the northeastern states, so i'm not

sure what really changed. all i'll say, though, is economic growth is the number one issue, okay? and in wisconsin -- in wisconsin senator cruz was on message and unfortunately mr. trump was not. >> larry, it's carol roth. if this does go to an open convention, what are you handy capping the odds that they throw out northbound who is neither cruz nor trump to end up being the nominee? >> it can't happen. it cannot happen. they would have to make radical rule changes on the eve of the convention, and reince priebus said, i think it was yesterday, that there are only three people -- cruz, trump and kasich. unfortunately kasich hasn't won the required eight primaries to really qualify. that leaves cruz and trump. if the republican party thinks it's going to parachute in some additional candidate who is not in these primaries or caucuses,

and hat not one any of these states, the gop is on a self-destruct path. trust me on this. the one thing trump and cruz agree on is it's got to be one of those two, or maybe on a ticket together. otherwise the republican party would be disenfranchises, i don't know, whatever, 30, 35 millions votes. you cannot do that. it would destroy the party. >> there's obviously a lot that will happen between now and then. barney, before we go, i want to ask about some comments that bernie sanders made to "the daily news." he's taken into invoking the law that bears your name, dodd/frank, as a way he's going to break up the banks, and he said having legislation passed or giving the authority to the secretary of treasury to determine under dodd will franks, and they're too big to fail. can the treasury or the fed or the white house just do this under dodd/frank?

>> not as -- i was disappointed there's an incoherence there, and i was kind of surprised, i think senator sanders said he has forgotten about glass-steagall. i think it's indicative of his not understanding. under the law we passed, and hillary clinton understands this well and is committed to using it, there's a provision that if it looks as if a particular institute is going to be a danger, the federal reserve with the support of the rest of the financial stability oversight council can step in, and make them divest and fiction. similarly, if after looking at the living wills, that they have gotten, they can can say, wait a minute, you have a problem here. we think if trouble comes you won't be able to handle it. there's some power to do that. senator clinton has quite specifically talked, unlike

senator sanders who doesn't understand it obviously, that there's even more power to divest me divestment that they confused the question of antitrust we're not talking about -- with the question of too big to fail. can i congratulate larry. he's doing very well at talking himself into supporting cruz, even though on immigration and trade, and i want to congratulate larry on his new discipline. >> listen, in response to that, i have supported mr. trump's tax plan, i have not endorsed anybody, nor do i expect to in the near term. i will only say this. people in the trump campaign are suggesting that donald is going to give a series of policy speeches, serious policy speeches, as he did so successfully in washington at

the aipac meeting, and i think that will have a profound effect on the race. i'll leave bernie sanders and -- >> they're not very good at it. >> i. [ laughter ] we'll let you guys go. you can look for subway tokens or something, too, while you're after it. barney frank, larry kudlow joining us today on the campaign trail. let'et a market flash on valeant. seema mody? >> it is higher, dow jones reporting that it has reached a deet with a majority of the bondholders on the debt, alone amendment which involves an agreement on fees, rate increases, in exchange for leniency on the on filings, the company has been -- to avoid a technical default. the stock up about 1.8% after hours this after gaining about 18% in the regular trading session. bill and kayla?

>> they're making a bit of progress here, and we had report in the past several days that in fact the lenders will play hardball about this, and clearly they came to some agreement. just one immediate concern. >>, will ackerman saying a ceo is more likely in weeks than in months, so a few good -- >> at least in the stock market you have to bit off these low levels for valeant. the corporate bond market i don't think has changed its view that much. >> tough crowd. >> yeah. time now for a cnbc news update with sue herera. >> hi, guys, former cole keck fif has been fined $250,000 for conspiracy to violate mine safety standards for his role in the deadly mine explosion in 2010 that killed 29 people. as he was leaving the courthouse, he was yelled ought by a family member of one of those killed. >> outside the courtroom --

>> we're here because of you! a school bus overturned in parkton maryland. police and fire tweets say they were multiple injuries, but the seriousness of those injuries is not currently known. russian president vladimir putin meeting his austrian counterpart in moscow today, putin said there had been a downturn in trade between the two countries because of the slump in the global economy. and france's lower house of parliament passed a bill against prostitution and sex trafficking, but it proposes to punish the customer and protect the prostitute. the new law introduces a 1700 fine rising to more than 4200 for a second offense. that's the news update this hour, back to you guys. sue, thanks very much. up next, we had that exclusive interview with merck's ceo ken frazier. we'll talk about why he's been avoiding tax inversion deals just like the one that pfizer

was trying to do with allergan. jane wells has been doing in-depth research on a company that claims it can cure your hangover in less than an hour. her hangover haven experience, coming up. here's to breaking more glass ceilings in golf and everywhere else. kpmg. continuing our commitment to the next generation of women leaders.

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pfizership allergan is the latest and hugest character after the treasury department announced new rules on corporate tax inversions. how will this impact the industry going forward? ken frazier joins us with an exclusive interview. over to meg tirrell. >> thank you, ken, for joining us. >> thank you, my pleasure. all eyes in the business world have been on the surprising events. what do you make of all of this? >> well, i think every company has its own unique approach to creating shareholder value. for us it's about scientific innovation. >> but you've said over and over again you would never do. for the past few years you've told us this. i know you've been looking for

tax reform, so tell us your thoughts on that. >> what we have said is we didn't think doing a large transaction for the purpose of getting the tax inversion benefits, which are unquestionably important financial benefits would be the right way for us to go. we are so dedicated to our pipeline, so dedicated to science. we think, however, it's really important to recognize why companies seek to do tax inversions. that is the current u.s. system of taxation makes u.s.-based companies simply uncompetitive. >> is the tax rate you take here with the united states or your able to access your overseas cash. i understand that merck does more than half of its business, at least in materials of revenue, overseas. >> meg, i think a good comprehensive tax reform package would have two things. first of all, it would have a lower rate, but also a territorial system that would

allow us to bring in money that we make overseas, that we're taxed on overseas without double taxation here in the united states. >> when you see the treasury putting out rules like this instead of congress acting in order to enact tax reform, does it concern you that we're not actually going to get any kind of tax reform, that we have thinks kinds of temporary rules put in place instead? >> well, i'm optimistic that after the next presidential election, we will get comprehensive tax reform. it's one of those issues where people on both sides of the aisle aee that in order for u.s.-based companies toe competitive, particularly in a field like pharmaceuticals where getting the best ip assets wherever they exist around the world is a key to success, i believe the policy makers know that it's important for u.s.-based companies to be competitive. >> one more thing about this, and a few more things about merck. brent saunders this morning told our david faber that these rules

by treasury were un-american, severalally that they came out, this done a legal deal, and then the government just turned around and moved the goal posts. does that worry you, that the government could do something like this? >> meg, your connection has gone out here, so your question wasn't really one i could hear. would you repeat it? i'm sorry, the connection isn't working well. >> sure. i was asking asking you use your thoughts did sh -- i realize i can barely hear you, but please ask again. >> i wonder if kayla and bill are able to get through? >> ken, are you able to hear us? >> okay. >> she's pointing out that brund saunders was on with david faber, upset that the government was able to change the rules midstream. they already had a deal under the existing rules. are you concerned that the government can change rules like that seemingly randomly and would that affect your business down the road? >> well, i'm not familiar with

the specifics of this particular situation. of course, i think it's important for there to be predictability. that's how companies like ours take bets over the long term are able to do that. we want to make sure the rules are clear and predictable. >> ken, i'm back, can you hear me? >> yes, i can hear you clearly. >> fantastic. i want to ask you about your own business. merck has been a company that's done a lot of deals in the past. how are you looking at the environment right now for m & a? >> i think it's a good environment. i think there's been a change and i think it gills us an opportunity to possibly acquire good companies with good pipelines at a reasonable price so we can create shareholder value. >> another huge issue in the pharmaceutical industry of course is price. i want to ask about the hepatitis-c regimen. you priced it at a significant discount. tell us about that decision.

is this a new normal for you guys and maybe other people in the jury? >> well, the way we have looked at pricing is we've always said we want to optimize profitability and patient access. here in the united states there were so many patients who weren't being treated under the current regime. we said let's bring a product to market at a price where we can treat not only most well-off americans, but treat the less economically viability people, because this is a communicable disease, it's a big problem, we need to make sure that we provide all americans access to this drug and that was our thinking. >> well, ken, very interesting to hear your thoughts. thank you for joining us. >> thank you. we look forward to seeing you again. kayla and bill, back over to you guys. >> very good. meg as always, appreciate it very much. mr. frazier as well. facebook making a huge bet on livid i don't. coming up, we'll tell you about a big push and how it could help

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facebook is making a big place for valuable video ads as well as the massive television advertising market by doubling down on live, launching a new livid i don't button as well as new tools. it did get off to a bit of a rocky start, with a live broadcast and quickly shut it down. he just wanted to change location. there were some complaints about skipping and buffering as he began broadcasting again to nearly a million people, but he stressed the excitement and potential of livid i don't and the demand so far. >> the ability to broadcast, hang out with your friends, be there, present, interact, take questions from a community. and i think that that is -- it produces these much more raw and personal moments, which i think is what this community is all about. >> facebook using can scroll

through, and follow particular topics or people, and to get alerts when livid i don'ts are starting. they can now stream as to private groups, react to a video with a heart or smiley face, and also invite other people to join them to wash. to join them to watch video. zuckerberg is tackling a big market here and a potentially very competitive one. in addition to twitter's periscope google is reportedly working on a live video app as well. for all of these players making sure that everything works smoothly will be key. bill and kayla, back over to you. >> julia boorstin, thanks. >> we'll go to continue to live stream. >> as carol will tell you, i tweet and that's it. >> you do it very well. >> thanks. >> if you've been taking advantage of the wild parties in las vegas, don't worry there's a cure for your hangover that will have you back on the casino floor in just 45 minutes. that story by the intrepid jane

wells up next. understands surance company the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

vegas is known for its debauchery and if you've hadne too many and feeling what you did last night in the morning, fear not. there is a service that promises to cure your hangover in just 45

minutes, and jane wells went deep into research for this and has the details. jane? >> and they come to you, kayla. of course, it's a big day in las vegas, t-mobile areason sax about to open up. tonight the killers are the opening act and tomorrow morning a few people may have a hangover. it happens once or twice in las vegas and curing las vegas in this town has become big business for one doctor. las vegas is a place where people party hard, and it's where dr. jason burke wondered if he could make more money curing hangovers than working his day jos as an anesthesiologist. so after waking up after drinking too much the night before he concocted a proprietary cocktail of anti-nausea merchandise and other meds. >> i was patient zero. put the iv in. wow, this is amazing and i didn't realize it would work that well. >> reporter: a business was born, hangover heaven. >> there's two big headaches with this business that people

have to get over, two big hurdles, number one is the iv and number two is leaving the hotel room and i thought let's treat them on the transportation. >> reporter: he bought and refurbished a tour bus for $160,000. >> will to sell for my ferrari to pay for the bus. that painful. >> reporter: i'm sorry, so sorry. >> yeah, people shed lots of tears about that. >> reporter: okay. that's our little tease. last year -- the last year he's treated 11,000 hangovers. make that 11,001 and if you go right now to cnbcmakeit.com and see how i got to tie one on and took one for the team to try it out. >> jane wells, thank you. we have another tease for you. we have robert frank with a look at the most exclusive suite at the venetian in las vegas as well. >> bill, you won't see this great suite on any travel website or even the hotel booking agent. the top suite is by invitation

only to the casino's biggest gamblers. take a look. >> the venetian hotel has more than 3,000 rooms and a secret few are unbookable, reserved for some of the highest rollers on the strip. these super luxurious suites and the perks that come with them are all comped. >> we don't sell the swooempt you would need to be a preferred customer of the casinos. >> reporter: guests are invited to stay here based on their level of play. the more money you're willing to part with in the casino the more perks you get. this swanky suite has more than 20 tvs, two bars, and a theater complete with karaoke. the entire place is covered in gold leaf. guys, if that's not enough, this place also gives you the right to buy their $750 cupcake. >> the right to buy it. >> the right to buy it. >> you don't just get it. the right to buy it. i won't tell you what's in it that makes it worth $750 but one

of the ingreedients is more than 100 years old. >> i'm a simple midwestern girl. i'm good with the $3 cupcake. i'm from chicago and a $3 cup take is good for me. what do you put in a $750 cupcake. >> leaves more for drinks so can you go to hangover heaven. >> secret lives of the super rich 10:30 p.m. >> carol, we'll let you get back to the midwest. see you later. mike, that does it. that does it for kebl. "fast money" begins after this short break. we'll see you tomorrow.

over money starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the desk, peter narnlgage, brian kelly, dan nathan and guy adami. debt at the highest levels since the start of the financial crisis which could spell more gains ahead and we'll explain and give you three stocks that are poised to take this market even higher. one of the biggest deals of all time is now dead so why are biotech stocks surging today? we've got the answer and later something unprecedented is happening in the global markets, d it could signal the next great trade. we'll tell you what that is and how you can make money right now, but, first, we start off with the markets, stocks seeing their best day in