and then they made the call? statute of limitations. >> officials on the greens missed it. >> all right. patri patrick, the possible new head coach at georgetown on this day that the men's college basketball season ends, a new era at georgetown perhaps. "closing bell" starts now. >> hello. we're going to have so much more on these picks shortly. >> raring to go. >> welcome to the closing bell, everybody. i'm kelly evans. happy monday. >> happy second quarter, too. stocks kicking off in the red, although, it's one of those days where the dow was down 145 points. now down just 26. as we get ready for a big week for the trump administration. the president has his big meeting with china's leader xi, and that's coming up later this week. the senate supreme court vote happened in the judiciary committee. we'll see the full senate vote

later this week as investors await more details possibly about tax reform. we'll tell you what to expect and the potential market impacts on all of that coming up. >> there's a lot more talk about ipos lately after snap's in the backs, and now many investors look at whether pinterest is next to take the plunge. the ceo is joining us next. more on the epi pen expanded recall into the united states. who better than meg to have that for us later on this hour. meantime, though, we have breaking news on auto sales. phil lebeau, what do you have? >> this is not a good number. march auto sales, the pace of sales, 16.62 million vehicles, according to the research firm, auto data, to put that into perspective, most analysts expected sales in at 17.2 for a a pace of sales last month. auto data says the sales was the

pace at 16.62 million. all the auto makers are below expectations, gm, toyota, chrysler, only ford beat. slowing demand is what we see in the showrooms last month. auto makers curved fleet sales. that impacts this here, but what we see with the retailer in terms of how they have to sell the vehicles. more incentives, inventory's rising. put that together. as you compare shares of gm versus ford versus tesla, the reason we put tesla in here is because tesla now has a higher market gap than ford. yes, yard, selling 6.62 million vehicles worldwide last year, has a lower market cap than tesla that sold 76,000 vehicles worldwide. tesla, over the weekend, they reported first quarter sales coming in over 25,000 vehicles, a little better than animal i.c.e.s' expectations.

that topped estimates. as we mentioned, tesla's market cap surpassed ford, and on a day when tesla shares hit a new all-time high going above 290 and coming close to $300, elan musk could not resist, tweeting, trolling the shorts out there saying, stormy weather in shortville. good to be long on tesla today, guys, as the stock hits close to $300 per share. back to you. >> what a first quarter it's had. up 20% in the first quarter, now starting second quarter strong, phil, what about everybody else, though? what happened last month for auto sales, better than 16.5 million. what's the sense of who they take share from? >> it's not necessarily who they are taking share from. it's now hunkering down and saying, okay, how do we protect what we have. for the big three, they are in the best shape relative to their competitives because this is a market where trucks and suvs are in demand. relatively speaking, they fair

better than some of their foreign competitors who skew more towards sedans or smaller cars. that said, guys, this is an industry that historically has never done well when sales slow down. that's one reason why you see the auto stocks slowing. we're not doing well. you talked to analysts, almost all say the same thing, talk until you blue in the face about being a new management and a new way of managing business if you're an auto maker, show me you can do it when sales slow down. i'm not sure we're to the point where we're seeing a big slowdown in sales, but this was definitely a curve ball relative to what the street expected. >> yeah, exactly. >> when you say the big three, i'm not sure who we are referring to anymore. >> ouch. >> phil, thank you very much. see you later. >> you bet. let's get to the closing bell and change to start the second quarter, dow down 23 points now. david is here joining us today, cnbc market analyst at post nine, and cnbc contributor from

ucx is back with us again from chicago. steve, here we go again. another one of those buy the dip kind of days, as i mentioned, at the low of the day, the dow was down 145, and now we're down just 23. what's going on here? >> yeah. you know, as a trader, look for the standout headline, and i don't really see one right now. you see apple sort of leading the bounceback. you always try to point to maybe a european close where they feel it's safer to come into equities, u.s. equities, but i have no real headline that really sticks out as the catalyst for the buy off the lows. other than the fact that we've seen this time and time again. no one really wants to sell them. no one wants to buy them. sit in the middle until something from d.c. -- d.c. is leading the trade. if we're more optimistic that something is going to get done as far as tax policy, people say, you know what? i'd rather be in equities than a continued missed rally since

november. >> yeah. david, you're saying even in trump never gets the legislative win, the markets rise. it's a question of what the rise looks like, right? >> yeah. i think steve's right in the rise will look a lot like the way the market behaved in 2015, for instance, i think the bank stocks win. you hear about tesla, maybe that wins. you know, maybe you get the fed scaling back a little bit, and you get the weaker dollar trade. i mean, there's a reason for the market to tip into recession, so there's no reason for it to fall apart, but we could move past this sort of secular stagnation trade into a stagflation trade if we never, ever get anything from the trump agenda. >> speaking of that, jack, we watched the ten-year yield, now down to 234 today, and zi wonde what your thought is. i mean, is this a market that is sensing that the -- there's a slow down, auto sales out, new york fed out friday, reducing second quarter guess for what

growth would be for the quarter. what's going on with the treasuries right now, do you think? >> bill, a great observation. in fact, the action in that two-year, the ten-year, the entire yield curve for that matter, it's very confusing for a lot of equity traders. you know, i've always had the argument, which market is right? the bond market or equity market? this time around it feels bonds are right, especially looking at the 10-year yield, see what's beginning on out in europe, and all of this is revolving around lower expectations for earnings growth. remember, without 10% growth expected in the s&p 500, we're priced too high, and all of this, if you are bullish, and i am a bull, you know, you don't like to see the start to a quarter in a month that we saw today. the question, bill, to ask is, the markets are asking perception versus reality. that's really the question traders talk about. are we going to get the reality that people have been talking about? >> yeah.

>> on that appointmenpoint, dav mentioned stagflation. i see the stag. it doesn't see the inflation. >> we got the inflation for the 2% market for the fed. we are seei ining constraints, we don't get the growth on the other side. that doesn't necessarily mean the market falls apart, but look at stagflation periods, not good for stock investors, not good for bond investors. we really need the tax reform if we really want to do anything about unlocking more earnings and unlocking more economic growth. >> see in the late 1970s. before i get back to steve, dave, you have a trade you feel would be based on whether or not we get a tax reform bill of some kind. what would you be buying if we do get tax reform, for example? >> if we get tax reform, the trade comes back, small cap, u.s. stocks, financials,

specifically, and then if we don't get that, and we stay mired in the secular stagnation trade, you probably see the dollar come down, and now people are starti ining to be interestn emerging markets, benefits from the neutral to weaker dollar and disparity valuations everyone's talking about now, so we're a little tilted, more towards the trade in hopes we get something done on the tax side, but should that look like there's really no opportunity there, then i think people are going to want to rotate back to what worked and a neutral weak dollar environment, low growth, low inflation, low interest rates, you know, same boring stuff we've been used to for the last few years. >> okay. >> if we got tax reform, all right, it's the david pepper trade. buy everything. the market will go up. >> yes. >> that's really what it's about. >> right. >> yes, yes. >> if not, sell everything. it's binary at this point. >> that's not -- the temper trade is a no-lose trade. tax reform goes through, buy it,

doesn't go through, you know, quote on quote, the fed buys if for you. fine either way, jack. are we in that environment now? >> yes. it's a question of whether we see the market dip 7% before that. either way, you're going to see this administration and this congress do something. it's only a question of the velocity of change. that determines how fast we go up. >> steve, last word here. good gains for the first quarter, for the major averages, especially the nasdaq, up roughly 10%. can we do that again in the second quarter? what do you think? >> if we get tax reform, any type of tax stimulus plans, we can. the problem is jack said it, david said it, look at valuations in the market place right now, and they're beginning to resemble a lot like 2007 for me. that makes me a little bit scared going into the back half of the year. half of the year, so for me, take chips off the table. >> steve, you are not saying the strong reforms, big caps is a

tax trade, right? >> it could be. >> in the first quarter? because it's down -- more what david laid out, weaker dollar, emerging market -- >> sure. >> the on sit -- >> sure, but it's a tail wind too. you have billions upon billions overseas. if companies bring the money back here, that is bullish, ultimately, for u.s. equities, so i think that trade has a number of levers to pull. >> all right. good discussion, guys, good to see you, thank you for joining us today. >> thank you. >> appreciate it. >> okay. >> all those things are relevant right now. 49 minutes left in the trading session for the first monday in the second quarter. the dow right now down just 12 points. >> wow. >> what do you think? >> finish positive? >> by the time we're going to the break. >> happening right now, as a matter of fact. >> coming up, senator cassidy weighs in on the trump agenda with health care and tax reform. the republican from louisiana. >> up next, the ceo of pinterest speaks exclusively about the sharing site's initial public offering plans, plus, the one

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well, the ipo market has been heating up this year, only the beginning of april. the biggest so far is snapping. snapchat with a $3.4 billion value. invitation homes, and jeld-went with the top five.

the sharing site expected to make $5 million in ad revenue this year right behind snap inc, reporti ining $404 million in 2. pinterest valued at $11 billion. many say it's a perfect candidate for an ipo right now. we have a rare exclusive interview now with the pinterest ceo and co-founder. start us off here. >> thank you so much, bill, thank you, ben, for joining us today. do you want to take it public sooner? >> right now, we have no plans to go public, julia, and we are focused on building out the business. >> the sentiment is that it's reported you're on track to generate $500 million in revenue this year, making you a prime ipo target. can you confirm the revenue numbers and tell us what's driving the growth? it would be 70% year over year revenue growth. >> we don't do projection on the revenue side. what we say is we give

advertisers better tools to find the right people at the tiright time. people are there to design their everyday life, and so they are open minded. they are thinking, what products fit into my life, what clothing doo i want to buy, it's a nice opportunity for advertisers to reach people when they think about themselves and what they really want to buy in the future. >> you took a couple steps that should dramatically increase revenue. you opened up the door to small advertisers, and you opened up the door to ads that are crucial to facebook in helping accelerate facebook's growth. do you anticipate dramatic growth on the hill in making those changes? >> they are positive. we've seen a lot of demand for small businesses, making it easier for them on the creative side and design inspirational ads, and it's a device everyone has, help app developers reach potential users that enjoy

appsings that's valuable for everybody. >> kelly? >> thank you, julia. i saw my aunt the other say, and her husband made a great meat loaf when she came home, it was a nice surprise, she said, this is delicious she said, where did you get the recipe? from pinterest. it was the most shocking thing she heard from him in her life. how many users a male, over the age of 50, for example, and even if they were just looking for recipes, would you prefer they do something you can monetize better? >> i'm happy the meatloaf turned out well. actually, any time the site helps people discover something and do it in real life whether it's a meatloaf, home remodel, buying new clothes, we're excited about it. you know, growing portion of the users are male, 40% of the people signing up today are men. overall, we see user base growing nicely.

we are sharing today that we're now 175 million users, and a lot of people are coming from places that historically we've not seen them from before, internationally in brazil, western europe, japan, using for all parts of their life, meatloaf included. >> by the way, since you mentioned some of the initiatives you had and how important your advertising technology is, is that something that pinterest leverages beyond the site itself going forward? >> well, i think right now, we're really focused on advertising products within pinterest, making it a great experience for users, meaning ads are relevant and inspirational and great for advertisers, measure the results of the ads put out, and it's easy both to buy, and to put the creative spin on them. >> ben, this bill here, i would think given the visual nature of your media platform, it would be easy to globalize your product here. you know, china has been a problem for, like, the likes of

facebook, and there were reports a couple weeks ago that maybe even pinterest has been censored over there. first of all, can you confirm that, because there were a mixed report on that, and what kind of a strategy can you employ to better take advantage of the unique nature of your platform? >> yeah, you know, a big focus for the company is growing internationally. i, and everyone in china, can confirm you can access pinterest in china right now. we are optimistic about in the future. in terms of going global, there's two parts of the story. one is it's absolutely a very vis wall platform, but at the same time, you know, it's not just full of pictures, but ideas you want to make part of your life. it's important the ideas are locally relevant. i was just sharing with a friend that in some areas like fashion, that means you want to see global fashion, things from all over the world, and in other areas like food, you really want to see your local cuisines. one person's meatloaf is not

another person's. we try hard to localize content in all the countries we're in so they are specific to the users' needs in those countries. >> i have to ask you, with this recent partnership announced with samsung, you are powering the visual search on samsung's new phones. what does it mean in firms of potential to draw in new users, people who use visual search, but have never used pinterest before? >> well, you know, as you mentioned, you know, we announced the partnership with samsung, they have a new phone coming out, and part of the phone is an assistant called bixby. we let you take a photo and find things related. the reason we're excited about it, honestly, we think computer vision technology will be a big deal. we think a lot of the future of zen search is about pictures and key words. exposing that to people will be great. in terms of other part of the question, how much it will grow? i'm not sure. we're excited about it, but the phone's not out yet, but optimistic about it, and mostly we're just excited to get the

product, which we call pinterest finds, in the hands of more people. >> we played around with this before we came on camera, and it was fun. ben, thank you so much for joining us. appreciate it. we hope you come back on your path to an eventual ipo. guys guys, back to you. >> thank you for joining us as well. less than 40 minutes left in the trading session. now they are going to tease us. i didn't see it, but you saw the dow go positive briefly? >> i think i saw it with a 0 -- >> a nano second. it was positive, now up changed. the other major averages to start second quarter are negative. >> gamestop tells us how the company is battling the retail slowdown. that's next hour. up next, why wynn resorts bucks the trends on wall street, cockling pup. cockling pup. i've found a permanent escape from monotony.

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[ [ screams ] ] [ shouting ]

brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] zplnchs it's the eighth year of increases in gaming. they looked for growth to be between 12%-16%. leisure gamblers are continuing to flock back to mccow after the

two-year slumpment it's -- i mean, it's amazing that it took that long. we know how volatile gaming can be, but two years, that was a long time to have a slump. >> not to mention people love any sign that china's growing -- little evidence here and there. add it to the list. big deal. >> good for wynn as pointed out. heading to the close here with -- at the 3:26 eastern time, 34 minutes left in the trading session, dow down 6 points. panera popping on hopes now, what a top executive at the bakery chain has to say about all of that when we come back. also ahead, why this could be the most important week for the president on the foreign relations prompt. much more, stay with us after this. this. of the nasdaq market. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out.

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your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™ liberty mutual insurance welcome back, the dow dosix points. we are looking at panera looking at options, and the ceo told us the company does not comment on rumors or speculation. shares, which have already done so well recently, bill, up 8.5%

today. >> all right, thank you, kelly. 30 minutes left in the session here with the dow down six points where it had been down 145 at midday, joining me on the floor today, and different quarter, same story, though, and exactly with we were not sure what the catalyst was in the ten-year, but -- >> 234. >> it was powerful, just a question of people wondering about economic growth, something specific, more profound, something on capitol hill or saber rattling because now you hear thing from the korean peninsula. you have to be alert to the stuff, but as soon as it disapated and emotion came from it, we found the guys come in in there, looking to buy dips, and we seem to be in that spot where we're in a range, but the bias

is still to the upside. >> last time you were with us, you said you felt like this would continue until the fed really started to raise rates in earnest here because everybody's taking advantage of what is still cheap money. >> i appreciate you paying attention, bill, but there was one other thing. if congress moves in the positive direction for business, we're in a wait and see. it's a combination of what's happening on the hill until first quarter starts to come along, which once we see those numbers, if not seeing movement on capitol hill and the numbers become unremarkable or worse, we'll see investors lighten the load. >> doctor, always instructive. >> pleasure to be here. >> appreciate it, no, seriously, really. >> thank you. kelly? >> thank you, both. time now for a cnbc news update with sue. hi, sue. >> hi, kelly, hi issue everybody. the senate judiciary voted 11-9

to approve neil gorsuch, setting up the final vote in the senate with democrats seeking to block the nomination with a filibuster. the gop responded saying it will likely change the rules to confirm him. the tel-aviv municipality lit up with the russian flag this evening to show solidarity with the people of st. petersburg following the bomb blast on the subway. ten killed, 40 injured in the blast. officials say three people have been killed in a boiler explosion in a building in a st. louis industrial area. four others injured. officials say three buildings have been damaged by the debris. lpga golfer thompson was leading sunday's golf tournament when a viewer reported she failed to put the ball back in the same place when marking it. she was penalized two strokes for the infraction and two for turning in the incorrect score

card. she eventually lost the tournament in a playoff. >> the fans gave her quite a sendoff, nonetheless. she thanked them on instagram. guys, back to you. >> that is the dumbest, dumbest, dumbest thing ever. >> i know. >> now, this has been going on for years. >> i know. >> i didn't realize it was an official thing. viewers, if you see something, say something. >> don't. >> don't. >> what is that about? it's the only sport in the world where people can call in and -- what are you going to do, watch the mets game? they play today. >> exactly. >> perhaps the ump didn't see it, are you calling in to stop the game? >> it's like they turned everybody into an official. there's more camera on her than anybody else because of her record. >> that's just it, sue. what's interesting is the person who then gets air time is likely to get a violation because everybody else who might have

slip up or done something, you're not going to see them unless they are lead -- >> it's embarrassing to the sport. >> let the officials do the officiating, not the viewers. >> exactly. it's embarrassing for the sport. i'm begging the lpga tour and pga tour, officials, put it an end to it now. stop it. it's dumb. it's stupid. >> devastating for the athletes. >> and that too. thank you, sue. >> i might be fine doing away with it in other sports as well. on the topic, basketball, the length of time -- not getting into it, golf is at least the most -- the biggest defender, shall we say. thank you, sue. president trump in office for 73 days now, and this week on the international front, the most important one so far of the administration. here's more from washington. kayla? >> hey, kelly. yeah president trump meeting today with the president of egypt trying to reboot relations with that country. on wednesday, taking a second

meeting with king abdullah ii of jordan, but the meeting is the summit meeting between president trump and president xi of china. the topic is diffusing relations over north korea as well as trade relations between the two countries which have been tense since the campaign. the trade is his incentive to get china to the negotiating table on north korea. he said it's all about trade. secretary of state rex tillerson took meetings across asia including with president xi seeking to foam the runway for this week's meeting between the two country's presidents, but they say trade is just one of a host of issues on which china needs reassurance. >> the president of china is very focused on ensuring the united states doesn't destabilize china through unilateral actions, whether it's initiation of a trade war,

provocations on north korea, the south china sea, or taiwan. >> reporter: there's this saying, guys, in the market we know well, when china sneezes, the world catches is cold. that's the worry, any potential instability emanating from china or the relations could rock the market could prove to be further volatile for companies with revenue there, with operations in both countries, so we'll see exactly how it goes. important to say that for both of these leaders, the only audience that matters to them is their own. tough talk leading up to the meeting, could give way to productivity. we'll see in a couple days. >> any sense, kayla, what the outcome at least the administration is looking for from this meeting? tangible? or just the opportunity to bring the two together? >> i think it's an opportunity, kelly, to bring the two together. there have been expermts saying don't look for deliverables or

policies from the meeting, but we know that the president, president trump, likes a surprise, and he told the ft in the interview that there could be something dramatic and for the good of both countries that could come out of it, but it's unclear exactly what. you know, there are meetings in the g20, and multilateral meetings happening later in the year, and perhaps it's better for some of those tangible policy items to happen later in the year, but it's important to see both of those leaders have mutual republic and mutual assurance that the bad blood from the campaign trail is behind them. >> i think that's the most important part of the whole thing. they need to see each other, take the measure of the man at this point. we know mr. trump is the master negotiator, but president xi himself is no slouch when it comes to that as well and holds a number of cards in the game too. you know, it's clear that they need to just get together and figure out how to develop a working relationship here.

>> reporter: yes, and -- >> go ahead. >> reporter: to that end, both nations have been releasing deputies to make comments to this end, and just a couple weeks ago, the number two leader in china tried to preface the trade war, it's american companies who would be hurt if, in fact, that's the case. there's no winners. if there is a loser, it's the companies in america currently operating in china, so there's tough talk that is still happening trying to set the table for this meeting, but we'll see exactly what the president presidents, themself, accomplish. >> thanks, kayla. see you later. outside the white house there. down ten points on the dow as we head towards the close. certain varieties of epipens are recalled for potential defect here in the u.s. details on that comiing up. the fun out the video retail business. decreased sales, increased streaming. it's hit gamestop's stock. the ceo joining us ahead.

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dow down eight points now, trading lower today, capital downgraded the company stock to neutral from buy, recall on friday lost on four pa tents for its ms drug, and that stock is down another 12.75% today. >> epi faces an extended recall. we have more. >> kelly, viewers keep epi pens on hand for allergy emergencies, check the package number. they expanded the product to include 13 lots in the united states. it was after a recall in march after 81,000 unites in other countries due to two reports of the pen failing to activate. in both cases, patients were able to use a backup device on

hand which sells the epipen. the devices manufacturer, says testing turned up no further cases of the potential defect and the recall is voluntarily expanded out of abundance of caution. they will replace recalled devices at no costs and as for the financial impact, they estimate is amounts to 3% of u.s. epipen sales this year or $21 million. the affected lots include epipen and epipen jr. with expiration dates of object to april of this year. it does not include the generic version, that was recently introduced after the outcry of the branded version, guys. >> this is a little difficult to follow. so which of the epipens are fine? which, you know, that's great, and which are, you know, dealing with this recall, and how much of that is mylan's problem? >> they sell the pen, but pfizer

manufacturers it for them. they are being careful. it affects certain lots of the pens, different dosage strengths of the pen, and folks can check on fda's website for information about this recall for how to check lot numbers and see whether you need to replace yours. the authorized generic, the identical product, a different pricing scheme, that's not affected because it was manufactured at different times. so it is a little confusing, but if folks use the epipen, check it out on fda or mylan. >> showing my naivety here, but those affected by the recall were made as early as december of '15, a little over a year old now. how long does the pen last? >> they have expiration dates, of course, part of the controversy over the price because, you know, if you don't use them, you replace them every year or so. i should double check the exact

shelf life. my understanding is 18 months, but i should make sure, but i think people do generally replace them about every year. >> yeah. well, that's within the window, though. thanks, meg. >> thank you. >> thank you. 15 minutes to go. dow's trying to turn positive here, down three. >> told you, they are teasing us here. >> it's the best performer of all the major averages, the russell small caps down more than 1%. read through that, what you'd like about why people are selling off today, s&p down less at 3.5%. >> march auto sales weaker than expect the. we have a debate on whether auto stocks are stalling or not. coming up. coming up. who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs.

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this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] auto sales at a rate of 16.62 million. below expectations. stocks falling today in part on some of those results. we had gm and fiat chrysler hit the hardest. >> auto stocks down, a good time to buy? if so, where do you look? let's bring in our two auto analysts. bullish generally on autos, and jamie is here from consumer edge research who is bearish. thank you both. for you, is this a valuation

thing? do you think, you know, is if because of the names are trading cheap? do you think the market's wrong, they have brighter futures? >> well, it's a combination. first and foremost would be valuation. right now, general motors is trading at about 6.4 times the estimate for 2017 eps, and ford is trading about seven times, and they have dividend yields of 4.5% and 5.3% respective think. there's a bigger story than the u.s. you have global rising demand led by china so even though there's a pique level in the u.s., we have strength outside the u.s. in the u.s., we have the positivine of mixes, that is cricketed to rising transaction prices, meaning they are more per each vehicle sold. >> okay. jamie, we should point out you favor the aftermarket for autos. you don't want the manufacturers, but the dealers and the auto parts retailers and

so forth. why don't you like manufacturers right now? >> yeah, well, first of all, thank you for having me. i think it's the central question of monthly payments, and for the last several years, you had manufacturers that made more complicated vehicles, and have been able to charge and pass that through with low rates and high residual values that equates to relatively low monthly payments. what you have now are vehicles coming off lease, pressuring used vehicle prices, ultimately pressures residual values. what happens? lease payments get more expensive for consumers, and there's a supply increase now of a substitution of a near mix makes no difference, used vehicle with all the new technology on it. i think it's going to be a substitution away from new vehicles, and i think that's why you want to be very careful about which oems you're thinking of investing in. >> do you want to respond to that with specifics? >> well, we like general motors as said before, and we like ford, but, you know, our

investment piece factors in a decline of about 1.75% or between 1.5% and 2% between new used vehicles for 2017, right in line with what we've seen year to date including the march numbers, so, you know, there are concerns. there's a lot of positions that jameis mentioned that are valid, but we think with these types of values that, you know, we think that investors, when they come through the main concern, which is that, you know, they think that the auto makers can't sustain the profitability when we go through down cycles, and i think they are waiting for us to go through a down cycle and survive it profitable, and think they pay up for it. in the meantime, 5% yield roughly for each of the companies as we wait. >> jamie, the bear here, bow you like tesla? >> well, it's a different equation. just quickly, if i can speak to that point, though, i think he's right. there is so selectivity you can

focus on on oems to find value out there. again, in trucks and suvs and so forth. tesla is about to unveil a more affordable vehicle with 40,000 standing orders, a call on high-tech over the year updates, autonomous vehicles, automated manufacturing, and there's a lot to like about tesla. i think it's sort of rising above the fray. the problem with the declining is that investors shoot first and ask later. that's why you you see all the oems fall today. tesla proved otherwise. that's playing in a different ball game, if you will. >> yes. >> hard to argue when it's trading at an all-time high. >> before we go, i just want to draw attention to the swaps on insurance, for example, so default of the bonds has been getting more expensive, they look riskier, does that trouble you, especially with all the things heard about falling used

car prices and so forth? >> well, i'm not overly concerned about deploying car prices. there's risks to it. as far as another concern out there is about the sub prime, the fall rates going up, so, you know, i'm going to go with that value thesis that the stocks are relatively cheap if you think that they are going to make the numbers, and while you wait for some catalyst, you get nice dividend yields. >> before we go, jamie, i mentioned the aftermarket companies you like. we didn't name any. think you want to go over? >> sure. i think carmaxx is pulled into this in sort of the fray on the residual discussion in a negative way. i don't think that's accurate. they have proven to be an exceptional retailer of used vehicles. they are brand agnostic providing a very, i think, clear-cut way for consumers to buy and trade in used vehicles and growth story that tends to

trade at retail multiples, not auto multiples. they are ripe for debate, but proven time and time again it's managed soundly. i think they'll prove that out again in the next part of the cycle. i like the used vehicle supply ramping as a huge tail wind for carmax, perhaps above all others. >> all right. very good. good to see you both. thank you for joining us. >> thank you. >> thank you. >> art cashin told us the market on close orders were late, but coming in at 120 million to buy, which he said probably will be a nonevent when all is said and done with the dow down seven points right now. back with the closing doesn't county in just a moment. >> after the bell, health care reform not dead after all? position and republican senator cassidy has a bill and we'll discuss with him. you're watching cnbc first in business worldwide. siness world.

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would push the markets down that much, but we did then climb out of those. we briefly went positive, i'm told, although, i didn't see it. well, i was on the open, but -- yes, i see that. that little green spot right there, late in the day, but down 13 points on the close. the ten-year, the yield continues to go lower. why is that? we're down to 234 right now. is somebody expecting slower growth? the fed? the new york fed specifically reduced expectations for growth in the second quarter, whether that's having the impact, we don't know. lower on wti crude today, but it's holding at that $50 level. that seems to be the magnet it's clinging to now. and bob is joining me. what went up today, that would be the volatility index, the vix. 50 cents made money today if you know that story. >> yes. let's do a little bit on the risk parameters, sort of risk fault, that's right, hard to go up when gold's up.

your ten-year yield is up, and slightly, even though it's well off the highs. we talked about it last week, hard data versus soft data. today, the hard data of auto sales, a disappointment, versus the soft data, the sentiment, really good, very positive comments from the manufacturing sector, and yet the automotive data, not great, and today, and in the last week or so, i think there's concern about the hard data not as supportive as winning out over the soft data, and, of course, concerns about the washington agenda as well. >> well, i -- oh, by the way, i think we flipped that because i think the washington's agenda's very much front and center, especially tax reform. >> now we have word the president may be forging his own tax reform bill with mr. mnuchin, maybe the border

adjustment tax. confusion overall. my opinion, frankly, the numbers in the first quarter improve. we have this first quarter gd dip. always better in the second. >> okay, thanks, bob. out with a decline of eight points. g group ringing the bell with crzo oil and gas at the nasdaq. stay tuned for the second hour of "closing bell" with kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to "closing bell", everybody, i'm kelly evans. ish finishing the month, the dow with the decline of about ten points, struggled to go positive in the last hour, but couldn't quite do it, leaving it at 20,652. we closed once above 21,000, and in think case, the s&p down three points. that's more than a tenth percent drop to 2358. the nasdaq down to 5894, and the russell 2,000 hardest hit

dropping more than 1%, near 1.2%, in fact, to 1 p 369. the dow well off the lows of the session in midday, and we got 145 points at the low, nevertheless, down 11 of the last 13 sessions. we'll have much more on the marmar markets in a moment. gamestop sinks after reporting falling same-store sales in the fourth quarter, and retailers are hit. gamestop ready to shut down hundreds of stores. we're talking to the cfo how the company handles competition from video game streaming. that's ahead. joining me today, cnbc senior market commentator and pro-columnist, michael, and lisa from u.s. bank, and dennis from the "wall street journal," so, welcome, everybody. mike, you know, art made a point earlier, usually the first trading session of the month like april you get a lift, and today was going the other way. >> it was. i mean, you should have leaked lower earlier in the day. the markets are susceptible to

slightly softer macro data, that we got, and treasury yields down, hard for stocks to make headway. that said, middle of the day, you saw a little bit of that, you know, why not put a little money to work effect, in the large cap index, not the small cap russell come back or the market breath come back much, but seems to me we're in this range of relatively narrow range that we kind of, from the beginning of march to last monday, it's only 3% range, but we are smack in the middle, and the question remains whar, what be the source of the find. not selling pressure. >> was is that bad this morning? >> it was not that bad. >> what are the most important, you know, numbers we get? the manufacturing index, supply manufacturers, it came in at, like, what was it? 50 p-- upper 50s, fell a little bit, but it was marginally fine. >> new orders were a miss.

i think it's a matter of no one knew what was in the macro numbers. again, that's heightened sensitivity to the idea we have a soft patch or economic surprises get less good for a while, and, look, when treasuries interpret the news that way, the stock market has no place to second guess it. >> great point. the 10-year, 2.35%, i think it is. dennis, you called attention to today as well that is doing well right now and that's housing. you know, even the construction spending numbers this morning, there was a big pickup in residentials, so it's weird to just think about the conflicting data that's out there. and try to figure out how, you know, what's really happening in terms of the overall economy. >> yao right, kelly. our most read story over the weekend in the "wall street journal" is how hard it would be to buy a home this spring because of the shortage of homes on the market today. there's obviously an opportunity for home builders and share prices reflect that. mike is largely right. we're stuck here. looking largely for political guidance from an equity market side, but right now, at least

from what we tell here at the journal, kelly, feels like the burden of proof is shifted a bit. that is, the burden shifted to trump to prove that he can deliver. >> yeah. >> the market is willing to take it so far, but right now, the pressure's on whether he and congress can deliver. the answer so far is no. >> dennis, democrats announced there's enough filibuster the supreme court nomination of neil gorsuch. why is that important for investors? if that happens, they filibus r filibuster, republicans say, fine, we'll change the rules. we only need 51 to vote through the nominees, but if going forward the same change is made for other types of policy and not just the nominees, how important are the changes to investors, really? >> well, if we think about the coalition trump at least talk about forming, he and democrats to get tax reform through the congress, declaring the nuclear option, i think, is not conducive to that sort of

cooperation. skpg i think it's pretty obvi--s it was pretty obvious, if they act the way they are, the opportunity for a trump democratic coalition is certainly diminished opposed to a full republican approach that does not appear to work right now, at least as we see in the aca report. >> lisa, you as well, all this swirling, knowing how good the first quarter was for some of the big cap tech names, where do you see the opportunity right now? >> well, we actually are more favorable to a growth environment, and while we're cautious near term, we believe the u.s. equity market ends the year up, and so with the moderate growth environment that we envision, and equities modestly up, we really think more growth ore yemted sectors like technology and consumer discretionary are the best places to be. >> okay. top level or looking at individual names there? because, you know, on consumer discretion, we talk about this, but a lot of that is netflix. >> yeah. absolutely. we do have specific names that we're interested in, but not

commenting on those at this point due to portfolio moves, but in general, we believe there's particular names that have both top down and bottom up trends supporting them, and those are the ones most favorable to. if you think about all our shopping habits, we know the shift to the internet, influence of the millennials, ageing demographics, influencing all the buying patterns. really, what we are looking is the culmination of the companies benefitting from the top-down shifts as well as company fundamentals. those are good names we're interested in. >> okay. >> we're about to get in earnings season, everybody, and we are looking for nearly 10% increase year on year in earnings for the first quarter. by the way, that would be the third consecutive increase. before that, four consecutive declines, so we also would be seeing, mike, a new 12 month all-time high for earnings, $120 and change. >> essentially for three years

straight, calendar year '14, '15, '1 6, earnings were flat. there was a stat today, 16 of the last 20 quarters, estimates went down for s&p earnings, but stocks up. stocks have gotten used to this drill that we overestimate our earnings in the begins, but i think timely there's payback for the earnings this quarter. >> a big chunk is energy. still, a different environment than perhaps now. >> top line is coming back to the positive too. it's hard for stocks to go down and stay down when you have that question. the question is, how we paid for most of that with the runup? >> exactly. trailing 12 month operating of 19.6 times. that's slice and dice a bit, but still, 14% premium to the med n median. thank you, sam, trump discussing how to defeat isis and bring peace to the middle east with a meeting with the president of egypt today. gives the highlights. >> reporter: meetings must have gone well today. the white house invited the

press in for a couple sessions where the press was not scheduled to have access. we decided, hey, come on in, get a picture. that's a sign the white house is confident about the way things are going with the discussions with the president of egypt today. here's what the president said in their sit down earlier today. >> we'll fight terrorism and other things and be friends for a long period of time. we have a great bond with the people of egypt, and i look forward to working with the president and we have interesting conversations effective immediately. >> reporter: that means right now. we'll wait and see what, if anything, they agreed to today in the discussions involving both the presidents, but also their staffs and high level officials on both sides. meanwhile, tomorrow, dozens of ceos here at the white house for a series of discussions on a range of topics, everything from infrastructure to work force issues. look at some of the big names of the ceos and top executivings

here at the white house tomorrow including lee and steven, and john paulson, and paul taubman, and michael corbat of citi, ge, and steven roth, and robin hayes of jetblue here at the white house. guys, it is hot and cold running ceos here today. we just spotted pepsi walking down the white house driveway behind me awhile ago. e asked what she was doing her. she did not say. her name is not only the official white house schedules we've been given, so not clear why she's here, but she's become an important voice in terms of advising the president on business issues as well. a lot going on here. >> if you get her again, ask her what she thinks about panera about labeling the sugar content in pepsi at the soda fountains. i'm kidding. >> i'll bug her on the way out. >> admittedly, it's busy there, but the question we debated is,

what happens with the moves to ultimately, you know, confirm neil to the supreme court, and where all of this, and many of the things you just ran through, leaves tax reform? >> reporter: yeah, that's one of the questions. in fact, i was inside the white house, i ran into steven, the treasury secretary, on the way into the west wing for a meeting. he did not say what he was doing either, but you get the sense they working on tax reform effort behind the scenes. one of the questions will be, whether they can overcome the freedom caucus dilemma they were not able to overcome in terms of obamacare repeal and replace. the freedom caucus members have concerns about anything that is too big in terms of the deficit. that signalled to the white house they're willing to allow some deficit numbers to be a part of this whole tax reform effort, but how far they are willing to go is one of the key political questions. as they build this behind the scenes, they have to take into account political considerations that derailed them in the last one. >> great point. thank you for now.

appreciate it. >> reporter: you bet. >> dennis, i wanted to turn to you and raise something not talked about, it's important leaving the e.u., watching stocks today, seem to be trading okay, especially in germany. earlier, but they are beginning to be a concern that maybe the european union losing more from this whole thing that the u.k., and did you see the squirmish -- >> i did see that over the weekend. >> yeah. >> if there's anyone who knows the trivia, i know it's you. that scene of sovereignty -- >> i have been there. the monkeys, they try to steal your lunch. it's a very peculiar thing. you can't -- apparently, the spanish said, look, you leave the e.u., we want to reopen the issue. i'm surprised it's on the stable. >> it's been going on, since 18th century. to me, they are just negotiating points. the two sides have not sat down to talk yet. as trump has taught us, as any

good politician understands, start at the extreme position and work to the middle. >> right. >> but, you know, from what i heard from people inside britain, the idea is that we wanted to make the u.k. a singapore on the north sea, and that is a clear threat to the e.u., of course, trying to change its tax regimes for corporations and investors. that's the main negotiating point relating to investors. >> it's going to be fascinating. lisa, i was going to ask you, a parade of people coming on, telling us, they won't invest in europe relative to the u.s. this year, but stories like that make you think twice. what's your philosophy where to invest now? >> positive on equity markets as a whole, but our favorite shifts from the u.s. over into the european markets, and there's a number of factors behind that. one is that you're just getting a little bit of a cyclical upswing with earnings and momentum on the top down and bottom up basis and europe, and valuations there are fair and

relatively reasonable, so for both reasons, we think overseas is an interesting place to look right now. >> all right. there you have it. >> kelly, a change in the euro would be devastating to a a lot of countries, but none more than germany. go long germany and believe they keep it in tact. if not. a deutsche mark trading independently would be harm to the trading, obviously. >> yeah. dennis, thank you for getting tricked in there. >> any time. here for you. >> lisa, thank you, both for joining us. appreciate it. we have a news alert on wells fargo, sue? >> hi, kelly. the department of labor osa's distinguish ordered wells fargo to reinstate a former bank manager who lost his job after reporting, quote, suspected fraudulent behavior to superiors and a bank ethics hotline. that's according to the department of labor. the manager had received positive performance reviews, but was terminated after

reporting separate incidents of suspected fraud. he was initially told he had 90 days to find another position within wells fargo when he didn't or couldn't, he was fired. they did -- wells fargo was ordered to compensate him to the tune of about $5.4 million, including damages and lawyers' fees. wells fargo's spokesman says, quote, to date, there's been no hearing on the merits of the case, and we'll be requesting a full hearing on this matter, end quote. kelly, back to you. >> all right, sue, thank you. mike, i can't think of a lot of examples where we read about the company forcing to reinstall the whistle blower. >> i know these provisions are out there, and the government does try to watch it, but at least in a very prominent case like, this i'm not sure. if there's a payout, it's not coming into play. >> that's true. all the protections for whistle blowers are because they are praias in the companies. interesting to see how it plays out with wells shares lower by a tenth of percent. president trump focusing on tax

reform after attempts to replace obamacare failed. up next, trump's strategy to take a more hands-on approach, and, later, talking taxes, the budget, health care, and trump supreme court nominee when we are joined by the louisiana senator bill cassidy. you're watching cnbc, first in business worldwide. what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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when repealing obamacare failed, president trump promised to move on tax reform. he declined a timeline for a bill, and today, "politico" reports several administration figures are working on a plan, a plan that does not include house speaker paul ryan's border adjustment tax. joining us now, one of the authors of the story, "politico's" white house reporter, josh. hello. >> thanks for having me. >> there's a lot of developments here, and i'm not sure which moved significant, perhaps some of the retail rs here, they love the fact they won't be there, but what are the facts of moving along? >> the president and the team are taking a far more hands on approach. last time, they left details on the sausage making to -- paul ryan jumped on it in the end. here you have the treasury

secretary, cohen, former goldman sach's executive working through the details on this, and they want a plan they feel confident gets the votes introduced, not one of the rallying votes from day one. >> we understand now that the trump administration has a tax plan. this is a separate document from the brady plan, the cam plan, but this is new and different? >> yeah. from what we understand, the white house is taking the lead, meetings on this in the past couple weeks, with the president, the counsel team, with treasury department staff, and they are putting it together from scratch, not to say they won't take some ideas, but they are putting together their own plan, and it will not be the transition plan. it's a plan that floated out,

but they are starting from scratch again. >> well, josh, as they put together whatever plan comes out, is there any sense that they will be trying to set it up as potentially revenue neutral? so in other words, make it somewhat easier for that factor that does not want to vote for something that opens up the deficits? >> i think they will. i think it's something the president and strategists have said. they've been open to, but we don't think that's going to happen. rates, cognizant for what they get supported, a few freedom caucus members. since it is, you know, they care about the revenue neutral piece because it's a delicate balance to strike here. if they don't get it right, it would be devastating to the president by all accounts. >> i imagine they'd lean on things like repatriation. >> right, right. >> messing around with the

corporate expensing, and do they go with the interest deduction? how do they fund tax cuts then? >> in conversations over the weekend, it's not clear. you know, i think they were expect i expecting the discussions to live several more weeks. obviously, that fell apart. they were counting on money frustrate reconciliation of the repeal and replace bill. it's influx. they did not expect the debate so soon, a, and, b, there was a setback from not getting their money on the record in the affiliation process. it's the starting gate. you are seeing the white house, you know, poking through what they can actually get done here. >> and it may well be why the markets are in flux today too. josh, thank you. great roberting. appreciate it. >> thank you for having me.

>> josh from "politico." video games transfer from physical to digital ones. what's that mean for gamestop as it sees sales decline? hear from the company's cfo coming up, and workers raiding the 401 ks, and why companies want to ensure workers can retire when we come back. when . i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out

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welcome back, the other stories today, j. crew's executive creative directser is living the company after working there for 26 years. served at president and creative director since 2012, and he'll remain creative adviser until december. j. crew is not replacing lions, but transitioning her responsibilities to other executives. major league baseball and coca-cola inked the new deal to make coke the official soft drink of mlb. pepsi was since 1997, but announced last month, they are shifting focus to the local level to focus on the 11 teams it has individual deals with. american companies step up efforts to urge employees not to raid their retirement for loans or pocketing the money before retirement. about 20% take out loans, and 40% cash out when leaving a job. nay have an incentive to make sure they can retire so they can replace them with younger, cheaper employees, mike.

>> a cynical view, but i think there's nuances there. cashing out is horrible. >> 40% do it. >> borrowing from your future self-paying yourself back, if it's that or carrying high coast credit card debt, maybe it's okay. >> home depot tried to give people a 90 day waiting period. borrowed against -- one lone, wait before you do another, and that helped drop the usage of them. people realizing -- >> it's not one to keep going back to. >> the point, whether that might be actually the better cheaper alternative, i just feel it's hard enough to get the number you need to for retirement, let alone if you borrow from it. >> default options, companies try that. >> if they want to help people, just all match, all of them. >> absolutely. >> a lot of that went away after the crisis. has not come back. all right, president trump shifts focus to tax reform after failing to replace obamacare. coming up, republican senator

and finance committee member tells us whether tax reform gets done this year or if that faces more resistance in congress than health care. first, shares of one apple supplier plunging after apple said it will no longer use graphics chips. up next, which others are extremely reliant on apples business. business.

welcome back. wall street, most notable, declines across the major averages, and a month like april, that's usually a pretty good one. you often see the first day of the months inflows or trading downs. noun of that here. dow dropped is 13 points, s&p down three, nasdaq 17, and the small caps the worst performers today. now for cnbc news update with sue. sue? >> hi, everybody. president trump meeting with the egyptian president el-sissi at the white house asked about the russian subway explosion. proump called it an absolute terrible thing, killing ten, injuring 40 more. vand limit hits the trump national golf club in virginia, several holes in the ground dug out with a shovel on the 13th fairway. rocks were spray painted and

bleach poured on the fairways, no damage estimates given. georgetown university hired patrick ewing to be the next basketball reports. he led the la jollas to the national championship in 1994 and reached the final three of the four years at the university. super bowl champions honored by the red sox. brady showed off the newly returned super bowl jersey and saw what happened. a teammate took it from him, ran around, and after a chase, he tackled him, and reclaimed the jersey. just a few moments ago, the nhl announced they are not participating in the 2018 olympic games because it interrupts the pro's schedule. the ordinary persons basically voted that they don't want to interpret the schedule for three weeks at a time every four years. there you go, kelly, you're up to date. >> why not? if this happened in the past? >> basically, they have to take

a vote, and in order to give the olympic organizing committee their decision. >> yeah. >> pressed to do it before, but they -- it's the prime part of the professional season, and so they figure they are not going to do it. >> tricky. drew a line in the sand, or in the ice. >> in the ice. >> yeah. all right, thank you, sue. mikes thoughts on that? >> affects every country essentially. the best players in the world play in the nhl from everywhere. >> great point. >> it's not just going to benefit one team or another. it was always a strange setup suspending their season. >> what else do you do? move the olympics? >> more eyes on hockey during the olympics than any other time. >> interesting move. shares of imagination technologies plunges after apple cancelled the contract with the chip maker. it's not the first time a company has been destroyed like that after losing apple. dom has a look at companies that relied this heavily on the tech giant. >> a lot of analysts have

estimates about the apple e ecosystem and which suppliers are levered, more business ties to apple overall, so we asked rbc capital markets and the analyst team covering tech hardway for a sampling of the well-knowns outs there in the apple supply chain. first of all, they have 66 -- two-thirds of the business from apple, highly levered. if that disappears, that could be detrimental. sky work, also on the chip side of things, around 44% on the high end, could be the estimate for how much business they get from apple. corvo as well, 37%, jabil, 24%, and broadcom at 15-20%. those are the names in the system. as we talk about names that are perhaps at issue in case things go wrong with apple, this is a big hypothetical, some stocks

could be more impacted than others with regard to the overall ecosystem, guys. >> i don't know if there's a a way to evaluate the company we just discussed said, they said, okay, fine, apple, you do it on your own? good luck. yeah. i mean, so here's the interesting part. >> about that whole discussion discussion, you talk about ideas with regards who has a better understanding of what their intelligence property is, we have data partners here behind the cnbc index, looking at the intelligence property of companies. in this case here, they handicap certain things. they say a company like logic, perhaps, they say extremely vulnerable, again, because of the business with apple, they make the audio chips, they could be replaced by a broadcom, and qorvo is vulnerable if the supplies can be substituted out for later models, maybe future, again, generations could be made by qualcom, and sky works, moderately, not as vulnerable than other ones because they

have more business away from apple as well. gives you an idea. analysts all over wall street are trying to evaluate companies to see if their intelligence prosecute can stand on its own or replaceable. that's the real issue. >> mike, a good reminder, blessing and curse, apple itself had the same issue. the better it does, the more you it goes away. what are they left to deal with. >> being apple, you never have a clear idea what they look in internally, research and development wise to try to do it themselves. now, they are not going to just try to do this for the sole purpose of displacing a supplier, right? only doing it in certain areas where they feel it's greater advantage for them to basically do something more inside. >> apple shares continue to be near all-time highs here. 143 bucks, onest best in the top quarter. thank you, dom. >> you got it. here's the story that's just breaking. warren buffet is not just a huge coca-cola investor, but a fan of cherry coke, as we know, and the

investor is helping coke launch the drink in china with a personal touch. look at this. that's his picture. that's warren buffet on the can, bottles too. he's popular in china. estimated 2,000 to 3,000 investors attended the annual meeting last year. no compensation was involved in this promotion. >> wow. not many board members probably of any company have been able to say that. on the list of things that warren buffet never expected he'd actually see in his own lifetime was his own face used to sell products in china. >> yet not surprised. >> no. how popular he is there in china. >> it's the land of self-made billionaires to some levels. >> right, exactly. wow, there he is, the oracle. first, it was the cable box, now the video game consul, as more people stream games, how do video game creators and retailers adapt? the gamestop has the outlook coming up. louisiana republican senator

cassidy has a take on taxes, health care, and president trump's pick for the supreme court. his confirmation voting process could impact legislation going forward next. keep it here. you're watching cnbc, first in business worldwide. siness world. my business was built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

enough votes to block the nomination of the supreme court pick that could lead to a dramatic vote later this week.

we have the latest on how it's playing out, john? >> a big week for president trump who had some setbacks with the demise of the health care bill, but meeting with the e egyptian leader at the white house today, he hosts president xi of china later in the week, and most importantly, he's on track to gain a supreme court justice in neil gorsuch when the senate, as promised by mitch mcconnell, approve him friday. let's take a look at the recent history. where did the current supreme court come from? one appointee was from ronald reagan, one from george h.w. bush, and two each from bill clinton, george w. bush, and barack obama. there's a pattern to the confirmation of those justices. that is increasing polarization, smaller vote counts. for the justices who were approved in 1994 or earlier who were on the court now, average confirmation vote was 83. for those approved since 1994,

the average confirmation vote only, 67, that polarization means that mitch mcconnell is prepared to change the rules that have required members of this senate to cast at least 60 votes for a supreme court nominee, ending the filibuster. now, democrats have show they can have at least 41 of their members to sustain a filibuster, but if the senate changes rules by minority vote, the filibuster does not exist anymore. that's what mcconnell is on track to do and donald trump would get his supreme court justice. >> how many times has a filibuster tried to prevent a nominee from being appointed in the past? >> well, we had nominees defe defeated, and we had nominees confirmed with fewer than 60 votes, which is what neil gorsuch has done, but the customs of the senate have dramatically changed as the two

parties became polarized. for example, clarence thomas was approved to the court with only 52 votes at a time when democrats controlled the chamber, but they did not filibuster that nomination, and so, therefore, you got clarence thomas approved. you had sam alito, approved with 58 votes, but the deference that members of the minority party had shown the majority party has really decreased substantially, and as a result, majorities are deciding that they need to take action to move. that's why harry reid, the democratic leader in the senate, changed the rules so that judicial appointments below the supreme court level were able to be approved by majority votes, simple majority vote, not with 60, but because mitch mcconnell blocked so many democratic justices. now mitch does the same thing for the highest level picks there are. >> yeahment and then maybe on to legislative matters next who knows -- >> i think that is where the senate is headed, kelly.

>> yeah. >> i think we're headed to majority institution that looks like the house. >> john, thank you. for more on what this rule change could mean, bringing in senator bill cassidy from louisiana. welcome, senator. >> kelly, thank. >> so what about the discussion we just had where, you know, this rule change may not be just for supreme court justices, but for a legislation going forward? >> well, certainly, it's -- first, it's clearly just for appoinments for judicial appointments, not regarding legislation. how many have been filibustered? the answer is zero. it's my understanding that never has there been one filibuster. it was chuck schumer relatively recently who introduced the con cement of filibustering appointees. the reason we got thomas was because the filibuster was not invoked. the irony here in which charles schumer introduced the filibuster and complaining because the filibuster is being

removed all within the space of 20 years. >> that's why i bring it up. seems obvious we're heading in what john called a majority way. why doesn't -- does it matter, and why does it matter if the senate looks like the house when it's said and done? >> first, i'm not agreeing with john we're going to the majority way on legislative matters. but it is important that with we come to the place in a senate where both parties come together in solutions. we can see those things that have happened like civil rights, medicare, medicaid, social security, enduring positive effect in the our country have. done in a bipartisan fashion. what's done with one party skbr jamming it through like obamacare, that leads to years of divisiveness, so i think that having a bipart san majority required is a good thing. >> well, the reason why we ask because we're trying to figure out, you know, what happens with the tax reform, what's it going to look like, and in doing so,

having to say, okay, does the president go strictly down to the gop plan might be, open up to something that might bring democrats on board and potentially lose republicans? do you have any sense of what this plan might look like at this stage with this backdrop that we're talking about? >> history tells us back to 1986 when bill bradley, a democrat, ronald reagan, of course, president, republican, led both groups together to come up with the '86 tax reform, that was considered a signature event, positive by both parties. some in both parties lost, but the country entered a period of growth that was remarkable. i would continue to assert that the most productive policies that comes forward is policy in which there is some sort of agreement in the reach between democrats and republicans. history tells us that. what are my feeling as a conservativ conservative? of course i want conservative solutions, history says it's better to have both parties involved.

>> senator, i don't know if this is an issue where that occurs, but there was talk over the weekend from the president from some of the colleagues in the senate that perhaps movement on this health care bill is not out of question from here, or maybe reintroduction or some continued work on this, and is that, n., something is a current issue that people are working on? >> it is something that i'm personally working on, i have not spoken to two members of the administration and two house members today, and having spoken to two democratic senators last week, and so i continue to work on it. the president said obamacare's on track to explode. the individual markets continue to have escalating premiums. the american people don't need that. they need lower premiums so, i'm working on it. i'm glad to hear the president is. i think it's another place where if we're going to find something that works across the nation, we need to have both parties involved. >> is this something that you think works across the aisle, senator? >> i'm certainly attempting to work across the aisle because we saw what happened in the house when it was only one party pushing it. on the other hand, my principle

is, we should give the power back to the states. if you're a red state, do a red thing. if you're a blue state, a blue thing. those states are more capable of deciding what works in their state than washington, d.c. telling them what to do. now, inharmtly, republicans and democrats will work with that, so i think that's a good thing. let the state decide the direction the state would go. >> all right. senator, thank you for joining us this afternoon. >> thank you. >> that's senator bill cassidy of louisiana. we have a news aletter on kate spade now. what's happening many. >> kelly, you know the market's been speculating that kate spade might be a potential acquisition target, and reuters reported that coach has submitted a bid for kate spade, that that happened last week. we don't have any details from that report about what price they'd be willing to pay. this rioters report said kate spade asked for more time to review the bid as well as

others. coach acquired stuart for under $600 million back in 2015, and kate spade's shares run up about 24% in the two months or so since these rumors hit the market. they are down slightly after hours on this most recent report, kelly, over to you. >> thank you. the most interesting thing is the fact the kate shares are down 4.5%. >> the market repriced the stock for a deal, and the question was, coach, perhaps michael kors, not sure beyond that, but i'm not sure why after hours people take the news if it was last week as a reason to sell it other than maybe they, you know, it was not high inform to get to the table. >> i can't say i followed the business of fashion that's reporting this. another trade publication to look into. that's the latest on coach and kate spade. ga ga gamestop's stock dpafalls, the e

on the consumer, and what it means trt company. on "fast money," the trader says the nasdaq could be on the verge of a major correction. breaking down the charts in the 5:00 p.m. hour. stay with us. stay with us. yes? please repeat the objective. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com.

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>> good to speak with you. we wanted to see if you could give us a read on what's happened to the u.s. consumer. it was disappointing again last month. what do you think is going on here? >> i think in february, we saw a little blt of an impact of the irs delaying the start of the tax refunds. i think that carried over into the consumer. but we've seen that come back a little bit, particularly at gamestop in the month of march. we benefited at game stop as well by the longest of the nintendo switch, which changes the trajectory a little bit inside the console video gaming space as well. >> that's a great point. i've heard the switch is on track, just increasing the production numbers, like the way people want to come in and experiment with it. before we get to that, what you just said is interesting, that you saw some weakness in february, tax refunds were delayed. it's coming back. at least it came back in march. is all this going to turn out to have been a blip? do you think the retail is

stronger than what we've seen so far this year? >> the consumer confidence would indicate that it is. our understanding based on the research we've done is the irs is about 98% or so of the level of refunds that it issued last year. so it seems like they've closed that gap. and about on track at the end of march with where they were a year ago. again, that benefits us in the video gaming space. because mens as a public like to spend some of their refunds on console video gaming. >> evidently. so what about the nintendo switch? how strong is that off to a start? >> it's been great for us. we've been able to sell through all of the allocation we've gotten from nintendo in short order. we can't keep it on the shelves. you mentioned the rumor that they would be doubling their production. while we've heard that, we've yet to have it confirmed by nintendo. so it's not reflected in our forward look as yet. >> that's good to know. then i'm glad, i don't want to

give people the wrong impression and that could be a tailwind for you guys. there's the rough end to last year, closing of stores, and just the weakness in traffic at brick-and-mortar locations. what's gamestop going to look like in a couple of years. the same as it looks today. >> we'll continue our diversification strategy. in the last few years we have built other businesses to complement what we do inside console gaming, so that we're less dependent on console gaming cycle. for example, we have a technology brands division that has over 1,500 stores, including 1,400 branded at&t as at&t's largest retail partner. we'll continue to grow that business. we have 90 million in operates earnings in 2016 from that business and would expect to grow that by 30% or more in 2017. as well we have a collectibles business that we sell both inside our video game stores, online, and in collectibles

dedicated stores. >> robert, before we go, are you saying that i might walk into what i think is an at&t store and it's actually a gamestop-owned store? >> more than half of at&t's retail locations are actually operated by resellers like gamestop. they're branded at&t. so you would really need to look for the signage to know the difference. >> i learn something every day. thank you for joining us. please keep us posted on these consumer and business trends. >> thank you. >> that's robert lloyd, chief financial officer of gamestop. one of the most popular stocks today. credit suisse has some ideas. .

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welcome back. credit suisse highlighted stocks among active fund managers, those doing the stock picking. when it comes to large cap spots, microsoft the most widely held. next up is apple. 369. you can see them on the screen there. those three far and away the most owned. jpmorgan and johnson & johnson

round out the list. my instinct is how many more can buy it. >> that is the obvious question. so this is being posed as potentially some crowded stocks. i would point out that those stocks like microsoft, apple, alphabet, they all also have as their top holders index funds. it's not as if all the funds that own some stock in these companies have a tremendously overweight position in them. you have to own a little bit just to participate. >> i thought facebook might be on there. >> not at all. >> it's becoming more -- it's going to be on there one day. >> sure. >> interestingly enough, what were the names that people sold out of. some of those include chipotle, ford, honeywell and lowe's. >> besides chipotle, i like there were lots of big cap health care names on here. it showed you that health care besides gilead and --

>> facebook was number six on the owned list. >> it's up there. and closely held. the founder still owns a good chuchk of that. >> that's true. intel for people making their choices. see everybody tomorrow. fast money begins now. "fast money" starts right now. live from the nasdaq mark site, i'm melissa lee. tonight on fast, the nasdaq hitting a record again today for the 21st time this year. the mysterious north man trader said there's something in the charts spelling trouble ahead. he'll be here to explain. plus, we've got five stocks that are skyrocketing. we'll tell you the underthe radar winners and whether the high flyers have more room to run. president trump gets ready to meet with the president of china. could this be the big market-movingnt