i just like to -- >> my life. >> this will be front page in newspapers tomorrow, i think. >> this is the water cooler story of the day. >> yes. >> this and the united guy pulled off the plane. >> right. >> oh, yeah. all right, thanks for watching "power lunch", and "closing bell" starts right now. ♪ hi, everybody, beautiful monday in new york city. welcome to "closing bell." >> a tax reform may tack longer than as expected. a new report says the trump administration is starting new tax plan from scratch. we have details and your heard sean spicer say they hope to have it in place by next year at this time. >> all right. >> we'll see. >> tesla sur passing general motors as the largest auto maker by market cap. they are going back and forth. tesla up 3.3% now. a 45% this year, three and a

half months. almost a sign the market is too expensive? we'll debate. a buy recommendation today. >> yes. that helps. >> timely. >> yes. >> and this -- you probably have seen it, the shocking video after this united airlines passenger being removed from an overbooked flight, just chosen random randomly to be taken off the flight. response from yuunited and whetr bad press for airlines is a problem for airline investors. crazy, cia zrazy story. but we begin with -- oh, and we may have a surprise guest today as well. stick around. that's all i'll say about that. we begin with a new report of wells fargo's fake account scandal. additional clawbacks from the former ceo and top executive. working this story heavily today, you've done a great job on it. give us the latest now. >> thanks, bill, so, yes, the headline is that most of the blame is being placed on former

head of the community bank who was fired for cause and made to give up an additional 47 million today. though the lawyer said we disagree with the report and attempt to lay blame. former ceo john stumpf forced to give up $28 million in pay. stepping away from the individuals, the report said that a sales oriented culture and decentralized corporate structure caused the issues, and let's dive into some of though specific examples. firstly, the monthly motivator report said that some employees lived and died by the results. sec, score cards instituted and generated significant sales pressure, and the jump into january sales campaign, designed to get the year off to a good start, described as, quote, a breeding ground for bad behavior. one account of the jump into january campaign in los angeles

reported the practice of running the gauntlet in which they dressed in themes costumes, formed a gauntlet, and individuals ran individually down the line to a white board to report their sales numbers. meantime in arizona, the practice was extended into fly into february and march into march, and the regional heads, by the way, of the community banks in l.a. and arizona were two of the total five terminated for cause. overall, the community bank hesitant to end the program because she was scared to death it would hurt figures for the entire year. these sales practices have since been reformed by the ceo, tim savings and loan, joining us at 4:00 p.m., guys. >> what did this report unearth about tim sloan himself, or the high level executives during this time? >> tim sloan, himself, was given clear pass. the main reason being that throughout most of the period when the sales scandal developed, he was cfo and head

of the wholesale bank, and therefore, did not have direct responsibility for these sales misgivings, even if he was aware of them, he was then president and coo in november 2015. at that point, she started to report to him, and instead of john stumpf. he takes credit to end her tenure, something the board failed to do before that. in terms of other senior executives as we know, she and stumpf very much in the spotlight, tolstedt found to be improperly acting and terminated for cause, and stumpf did not go that far. the board, as a whole, getting a pass as well. >> curious, i'm curious, the chairman of wells fargo told you they could have claw back more, but chose what they did. what they were clawing back is 24% of the compensation during that five year period when they

had these aggressive sales campaigns going on there was that a formula what it remitted or how did they get the amount? >> we pushed on that, 24% of a six-year period. 286 million received over that period and gave up 24% of the period. that feels like a relatively small amount as you suggested. that particular giveback today in april was an award in 2016, and it was after most of these conclusions had been now reached retroactively, but, no, all the chairman said was they could have taken more if they wanted, but deemed this to be a fair amount for level of wrong doing related to mr. stumpf. >> interesting. thanks. see you later. >> thank you. here's that surprising story.

tesla is sur passing general motors in terms of market capitalization in the market, the largest u.s. auto maker. a sign the market is too expensive? let's talk about that among other things today in the closing bell exchange. we have cnbc contributor from washington, and kenny from securities, and our own rick santelli that the cme in chicago. michael, starting with you, jack thinks this market is too expensive or overpriced now, and you agree, and is tesla an example of that right now, do you think? >> i can't imagine what they are an example of. watch an analyst cut estimates and say i had a profit but now i'm going to several dollars worth of loss, but i'm going to raise my price targets 65%, i mean, that just strikes me as absurd. almost irresponsible, particularly for the average investor who might be taking the advice they are hearing in some of the reports, so you see things like that when you hear

analysts say ignore the numbers, go with the momentum. that's always a sign of fraud. i think even today when you see morgan stanley's report saying stocks are going up 30% from here because we're in the phase of a market blowup here, again, signs of warning. stocks fully valued, make sure you know what you own and why you own it because when this music stops and it will stop, you better have a seat for you and your climates. >> by the way, over the weekend, 45% in cash, can't find anything to buy. market's getting carried away? >> i do. i said that for a while. be cautious. it's resilient. market had every reason over three, four days to move lower, in fact, and it really did not, and today, look, now up six points as we speak here as the market again in front of earnings season is starting to continue to react well. i think that there's -- i think there's a little bit of a loss

among people, like they were afraid to miss out. it feels like we get to the end where it blows off, but i think right after tax season is when you see the market kind of correct. it's a seasonality thing. if you look back every, you know, the last four, five years after tax day, the market just pulled itself back, corrects a little bit, and churns before it starts to move again. >> and, rick, i know you had charles on today from trim tabs, data out on equity and outflows from equity, inflows to bonds. investors are circling wagons here or what? >> no. i think it actually goes exactly along with the story you've been discussing with michael and kenny. >> yeah? >> depending on the definition of fair value is, many believe that it is close to there if not there. charles beaterman's argument is that the positive season stocks are because contraryian indicators are moving up. far from a banner of stamp of

approval so seeing outflows in the equity markets is what gives charles the notion, and with regard to treasuries in many way, they define all logic because inflows for the most part have not ever stopped. there was a period when they slowed down. you know, so let's get back to the topic at hand. fully valued. that is the most relative term ever. first of all, fully valued for what? fully valued to take two years on tax reform and investors are okay with this? fully valued in terms of what the fed says they are going to do versus what they may do? fully valued in terms of mario draghi keeps all his ducks in a row? if tesla is the poster child, what poster are we talking about? they have been odd under any condition for stocks. are they wrong, though? listen, if in 40 years musk's dreams come true, they laugh all the way to the bank. i find the current conditions so interesting because as a market guy, i'll finish up. i don't see any of the

fundamentals trying to be objective, telltale signs that either market changes its presence stance, so that's the way i see it. >> yeah, michael, other than tesla, and by the way, the rest of the sector at lofty levels too, a share story here. other than that, what do you see? euphoria in clients? begging you to get in stocks? i mean, are there any others areas you see value here? >> well, i think there are. clients are saying, gee, we're enjoying this, and they are enjoying the rooiide. this has been the market top that just won't happen seen in a long time. i sent doug cass a note this morning saying markets remain irrational longer than ke with remain liquid. the trend is going up. economy's okay. i think prices are full based on price-to-earnings ratios. i buy things not doing as well so i like the consumer staples. i like energy. in that consumer staples space,

i own sprouts farmers market. i own cbs. i think that there's still value there. it's not a recommendation to buy or sell, but those are sort of examples ever some things that have not moved, and i would stay away from some of the high fl r flie fliers. >> so, you know, you're talking about being irrational, though, fine, make the case for tesla, but why not the whole stock market right 19? >> which case? >> that it's irrational. the point to cass. >> it's expensive. not irrational. not stilly yet. earnings margins, profits coming down, price to earnings multiples around 19 times, and earnings are okay. the economy's growing okay. i'm a little concerned -- i don't think the fed gets in the way. i don't think they do anything. atlanta fed provides first quarter gdp outlook down to .6%.

it's not bad. >> thank you, all, for the thoughts on today's market action. appreciate it very much. >> thank you. >> see you later. 50 minutes into the close. dow has a gain of 37 points, just quietly adding those up here. never short a dull market. the s&p's up five. transimportants up 96, nasdaq up 13. russell up five. >> congress out of session, waiting for earnings. in that netherworld right now. trump administration reportedly is throwing out the tax plan he campaigned on and writing a whole new one. details on that story coming up. as wells fargo claws back $75 million from former executives, the bank's current ceo speaks about putting the scandal behind them once and for all. that's up next on cnbc, first in business worldwide. siness world. is happening before our eyes. shift in human history sixty to seventy million people

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how fast is fast?? in a world of fast internet speeds... there's the best. and then there's everyone else. bombs away. holy. [ laughs ] get the fastest internet and the best in-home wi-fi from xfinity. and stream on speeds so fast you can catch up on the fast saga before the fate of the furious hits theaters april 14. xfinity. the future of awesome. the trump administration reportedly starting from square one on tax reform. here's more from washington. >> reporter: the timing for tax reform is ten ewous at best. they said on our air back in february he was committed to

getting a deal done by august, but white house spokesman spicer indicated today that deadline is flexible. >> this is the beginning phases of the process. that still would be a great opportunity, but we're going to make sure we do it right and with the input of individuals, groups, and members of congress that have had a long time interest in doing this. >> reporter: the press reports the delay is because the white house is reworking the plan that the president rap on in the campaign. treasury told me that the president's fundamental principles remain in tact, but there's basic questions not answered yet, like, will the plan increase the deficit or should tax cuts be temporary or permanent? meanwhile, hoping if getting democrats on board is fading. they would oppose $1 in tax cuts for corporations or wealthy househol households. >> shouldn't tax policy come

from the wayins and means committee? >> so old fashioned of you. >> silly me, right? >> translator: house has a plan, but it's having a hard time getting republicans on board with it. >> that's the point. >> i guess. so the president is also considering a crackdown on unfair subsidies by foreign governments who export here to the united states. what's going on with that? >> reporter: yeah. well even as tax reform is taking longer than expected, the administration is making tracks on trade. the white house issuing an executive order to launch investigations into potential dumping of products like steel and aluminum, according to administration officials. exactly when this executive order is announced is still unclear, and the commerce department already has broad authority to conduct these investigations, but it was described to me as a one-step in making good on the president's pledge to get tough on china. of course, this comes on the heels of last week's summit between president trump down in mar-a-lago. they have a plan to tack the trade relations over 100 days,

and in the next week or so, the treasury department will release its currency report unclear whether it goes so far to, and the word we hear is misalignment. what the administration looking for other ways to penalize countries, but undervalue currency. back to you. >> looking at this as progress and deliverable from the meeting between the two presidents, or is this a sign the administrationments more and will press for more? >> the executive order is separate from what happened during that meeting between president trump and president xi, but it really underscores how delicate that tight rope walk is, and, you know, on one hand, the images we saw out of mar-a-lago were the two leaders enjoying themselves, establishing a bond and establishing a relationship, but on the other hand, he still has to appease the base that elected him in part on his pledge to get tough on china, get tough on trade and put america first. >> all right, ylan, thank you.

>> thank you. >> the recap of the day in washington. such as it is. the day on wall street has been like recent days on wall street. the dow at one time up 94 points, down 41, in the middle now, up 44 as we head towards the close with about 49 minutes left. 7:netwitter votes on a ideat could put ownership of the company in the hands of its users. >> sort of like a coopen, i guess? something like that. wells fargo's ceo, tim sloan, here talking about millions of dollars in clawbacks from former top executive responsible for the bank's sales scandal.

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a look at markets broadly higher, dow 1 points, and the levels are not that much. the russells leading with a gain of a quarter percent. nasdaq up four to five points, s&p two, dow seven. we'll see if they hang on the gains. what about straightpath communications soaring today. at&t bought it for $1.25 million. one of the largest holders of mill meet ir wave spectrum. straightpath shares are up, not often, 149%. >> wow. how many gs are there going to be, by the way? when do we stop? >> translator: fast and furious series, just keeps going.

>> or rocrocky. will twitter be a cooperative owned by the social networking giants users? shareholders are going to vote on a proposal callings for a study of a co-op structure at next month's meeting. the idea began as a petition calling for a co-op structure. it was signed by 3500 twitter users citing chatter they warned, quote, there is a real risk of new owner may ruin our beloved platform with a narrow pursuit of profit or political gains. the petition argued that twimter's value can be unlocked without short term pressure of the target. we should point out the company opposes the co-op plan so it appears likely the vote, twitter stock down is 14% over the past year. >> just one of the many forms of pressure that's on the current management to put up better results issue and it's not to say that people putting the proposal forward, you know, simply want them to put up the best financial results at the

expense of the product lablt. that's the point. the idea it's floated goes to show, if it does not do something, it ends up in somebody else's arms who would neglect it all together. >> right. what strikes me, it has such scale ability it is so pervasive and a utility now. the co-op structure makes sense in a regard, but there's a little thing about the company shareholders in the way. might have a say about that. interesting idea, though. 36 minutes left in the trading session here. the dow up 20 points. united passenger, you know this story, reaccommodated from a full flight by being hauled off by security. it was caught on video by another passenger on that flight out of chicago. details on this unbelievable story, and there are new details out. that's coming up. tim sloan speaking with us about millions of dollars in new clawbacks from former top

executives at the heart of the fake account scandal coming up. . ♪ .

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welcome back, oil moving higher after another shutdown in libya over the weekend and

geopolitical tensions in the wake of last week's u.s. missile strikes in syria. crude over $53 a barrel. energy stocks rising on the back of that includes apache and transocean. >> kelly, we got over 30 minutes left in the session here with the dow up 14 points. joining me on the floor of the new york stock exchange is bill, continuing higher here, and in the past, there's a a tail wind. it's a head wind now? >> oil's a story that people are following, but right now, bill, there's just a sense that the market's almost, like, coiling. guys expected a big breakout on friday, and technical guys did not happen. the question is, when does this volatility explode, and which direction? i think the fact we have not carry through to the buy side means we're starting to run into head winds here. >> i said earlier, you know, congress is out of session right now, and we're still waiting for

earnings. we're in a netherworld now. >> right. employment missed, and now we are seeing numbers, commercial loans are lower, and perm debt is higher and so there are things making a case for we're going to see some selloff, but like you said, though, until we start to see the numbers, in a couple weeks, it's really just sort of con jex, but you have the backdrop of a situation we did not have weeks ago. >> right. >> face it, they are putting battleships into the sea of japan. stocks right there, beijing is 500 miles from north korea, so -- >> gold is down today. the dollar is markets are not responding. >> the whole thing's waiting for the action. we think there's extreme volatility in the near feature, but don't know which way. >> exactly. thanks, gordon. see you later. >> kelly? >> thank you, guys. let's get an update. >> watching a developing

situation in southern california where there's been a frightening shooting in an elementary school in san bern dee no. two adults dead, two students injured. we don't know how seriously. police call it a suspected murder-suicide. neil gorsuch now the 113th u.s. supreme court justice at the white house with the president watching as kennedy administered the oath. he was his former law clerk. he is humled by this new role. >> i promise you that i will do all my powers permit to be a faithful servant of the constitution and laws of this great nation. >> foreign ministers from the group of seven major industrialized nations in italy, representing the united states, and the civil war in syria and growing tensions in north korea will dominate the talks. >> and these dazzlers are the most valuable earrings ever auctioned off. the apollo blue and pink

diamonds will go for as much as $70 million when they are auctioned off in geneva on may 14th. they might be a great investment, but who wears them out? >> they don't match. >> i could see either one of you wearing those. >> if you wanted to spring for them, bill, kelly has one, i'll have the other. >> that could be a new thing. and then it's just $35 million a pop. >> a bargain. >> bad idea. okay. >> we're on to something. >> thank you. so tesla has passed general motors by market value today making it now the largest u.s. auto maker by that metric. it's market capitalization. tesla's often named -- talked about with retail investors, and according to t.j. ameritrade, it's in the top 20 traded for the month and quarter. >> with more here at post nine is j.j., welcome to you.

>> thank you. >> shares up 45% this year. >> tesla is held at -- ford is the most widely held auto stock. >> so ford is more widely held than tesla? >> yes. >> wow. >> tesla is two and a half times the rate of gm. it is a widely overall held stock. >> were they selling or buying? >> you know, tesla was a sale, but people hold it. what we see, bill, it's one of the most widely traded options plays. >> yeah. >> the reason being, you know, 100 shares is over $33,000. big portion of the people's accounts, what they do is they'll replace the stock with calls or they play options on it overall because, again, it's a -- one of the things people sometimes forget on wall street, retail has to manage their capital. >> yeah. >> and so doing someone a smart fashion like that makes a difference. >> top of the hour, we asked tesla, a sign of market froth

generally. do you see any of that happening in your accounts, either that people are going after tesla, going after stocks in a way that, you know, seems to go with the market? >> you know, look at the imx today, second month in a row with an all time high. that said, it's not up from last month. we've been in a market -- >> what's the imx? >> investor movement index. that measures how clients are engaged with the market, showing that last month, this month, all-time high in engagement, and so with that, our clients want to be involved in the market right now, and as, you know, we are at a time where we head into earnings, we have a jgeopoliticl situation, but we have a tax plan that the details are yet to come out, so i really feel like as long as the earnings seasons go well, it makes sense for people to be a bit more engaged right now than they would be. they have been, as you know, from coming out every month, highly engage since the election.

it's certainly been a good time for them to do so. >> last time, snap ipo'ed, you can't say whether customers were buying or selling. >> they were buying. one of the interesting things about it. one of the reasons ipos are so important to the market. we had 50% of the people who traded in snap had not made a frad trade in three months. >> wow. >> reengaged them in the market. >> what's the age? >> average age of that person under 40. >> really? >> what's typical average? >> over 50. >> okay. >> so that's fantastic. so you start to see this social -- also, the people who tri traded that -- >> i wonder, maybe it's more snap the side of the market than tesla. >> nothose were people involved. i think you're on to something there. the people who participated in snap were also, many of them, same people participated in twitter and facebook, and any of the social media stocks. it's interesting. i would compare this to an apple

six years ago. it started its own cult, if you were. people got involved in apple because it was apple. you are seeing that fall over in social media. a good thing for the market that younger people -- you talk to someone 35 by gm, eyes roll up in the head. it's not a rip on gm. saying older products. >> right. >> older companies. social media companies excite people. anything that excites people, i think, is great for all of us. >> all right. very good. thanks, jj. >> pleasure, guys. >> thank you very much. >> grandfather's auto. or mine. yeah. >> tesla, that is the new generation. >> 25 minutes left in the trading session. the dow now is trading. they took the boards away. up 20 points on the industrial average right now. >> and we've been reporting on the mall malaise in general, but now there's tenants coming to the rescue in america's shopping centers. what it means for the sector and real estate next. new details about a viral video we've all been watching, a

united passenger carried off a flight at o'hare yesterday. coming up, latest response if the airline and industry trend that may be to blame 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. we'll listen. we'll talk. we'll plan. baird. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

the gainers are avis, jb hunt, ryder merged, a couple trucking companies. >> knight and swift. >> pushing that higher. even though the price of oil continues to march higher as well. >> go figure the correlation between those lately. america's mall misfortunes spurred by online shopping finds solution to real estate woes from new sources. we are joined by diana in washington with more. >> reporter: despite headlines of store closures on 5th avenue and fears retail real estate is not as dire as you might think, and there's deals out there to take advantage of. the neighborhood vacancy rate held at 9.9%, unchangerd for the quarter and year asking rent up a little bit, .4%. at big malls, vacancies in connection withed slightly and

mall rent up as well. why are we hearing so many dire headlines? >> we're not seeing retailers that are expanding or paying attention to them. so, yes, those are the stories and announcements making the headlines, but you see on some retailers, you know, especially food and beverage store concepts, newer concepts, are expanding. >> other things expanding, boutique fitness studios, pet care, dry bar, you name it, they move in the community and into the strip shopping centers, and class a malls, those with the higher end anchor stores are doing well, but the ratings behind them, they are whacked by the headlines. they have good prospects that according to a new report from green street advisers, they are listed overweight. look into those. guys, back to you. >> are you a fan of dry bar? >> reporter: why did i know you'd ask that.

i'm not. >> it's pretty good. >> i can do that in my home. >> you're more skilled an i am. >> dry bar -- now i'm in trouble for saying that. >> not at all. i'll add to that. i don't know what it is. you probably knew that. >> your next birthday, we're all going to dry bar for a nice blowout. >> 30 years too late. thanks, diana. see you later. 20 minutes left in the trading session, dow up 13 points, about 130 point swing top to bottom so far, and new details, keeping krmpb calls out of the skies. and don't miss this will be important, a first on cnbc interview with wells fargo's current ceo, tim sloan, about millions back from the former ceo and top executive over the fake account scandal next hour here on "closing bell."

now why do i think you're about

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welcome back. united in the middle of a pr nightmare. >> to say the least. >> phil lebeau has the latest.

>> an update involving the passenger dragged off the united flight last night. minutes ago, the ap reported the aviation department said the officer involved in dragging the man off the flight has been placed on leave, part of that might be because of what you're seeing here, but also because if you look closely at other videos that are circulating online, you can see that the man hit the face on one of the chairs as he was removed from the plane. he got a bloody nose. again, he did not give up his seat when they said, would anybody like to give up the seat, otherwise we'll involuntarily remove people from the flight. then they went to him, and he said, i'm still not getting off the plane. i got to be at work tomorrow. i'm a doctor in louisville. you see the aviation police coming on board and physically removing him. oscar, the ceo of united said today, this is an upsetting event to us here at united. i apologize for having to reaccommodate these pmgs. our team is moving with urgency to work with the authorities and conduct our own review of what

happened. we are also reaching out to the passenger to talk directly with him to address and resolve this situation. for oscar, this is the latest situation involving bad pr for united airlines. when he was brought in september 2015, basically, they said, you guys have been a mess for a long time. under performing the rest of the industry in a number of areas, including perception of the flying public and working hard to overcome that, but, clearly, work is cut out here. united versus the airline index during oscar munoz's tenure. one last note, guys. the faa or fcc i should say, the chairman of that, out with a ruling today or a decision that the fcc is no longer going to consider allowing phone calls in flights. cell phone calls. he said in announcing this, i do not believe moving guard with this plan is in the public interest. taking it off the table permanently will be a victory for americans across the country

who, like me, value a moment of quiet at 30,000 feet. i'm not sure there's anybody upset with the decision. guys, back to you. >> i don't know. where do you begin? it doesn't help. i mean, i realize i got pr people at united, doing this, doing that, major corporations. >> sure. >> to characterize what happened to that doctor as a reaccommodation, i mean, that just adds insult to injury. don't you think? >> i'm hearing a lot of people on social media today saying, reaccommodate? is that what you're looking at here? look, probably not the best choice of words there. frankly, when you go back to how this has been handled from the beginning, i think united would go back and say maybe we need to address this better all around. they released a statement last night that was fairly cold and very matter of fact saying, look, the plane had to leave. passengers, if they are asked, you know, oversold situation to leave, they are going to have to leave. now they came up with a renewed statement from munoz.

if this drags out, at some point, oscar will have to go in front of the cameras or do interviews to say, look, i get it, i understand how upset people are because this is trending on social media. >> absolutely. >> boycott united, as well as jokes as united being fight club. it's spiraling out as far as people making comments. >> all right. phil, thank you very much. interesting. >> you bet. >> talking airlines themselves, stocks hid so far this year, so is maybe now the time to be adding to the positions or continue to avoid the sector all together? >> let's bring in jamie baker, and so is david from point view wealth management. guys, thank you both for being here. jamie, can you recall a similar incident like this? does this represent something new and different and odd in terms of covering airlines? >> the united incident? >> yes. >> first rule about fight club is you never talk about fight

club. good news is it shouldn't influence the investment pieces. doesn't influence how i model the company or how viewers think about the merits of united stock. >> hurts business? >> no, i don't. having said that, nobody likes to be involuntarily denied boarding. it's happened to me. three other people on that flight. presumably, might have happened to people on american and delta. you e know, that night. could united have handled it better? authority have the authority to raise that 1250? you'd think a price where they could have got people off. what's unclear to me is why the law enforcement response was what it was. this really smacks as a law enforcement issue than an airline specific issue, but i'm sure there are opportunities that united could have handled that better, particularly in the media twitter response. >> david, you don't like the airlines. >> this is a lousy business and a lousy price in a lousy time. this incident underscores that. why? the stock is up that day, setting this horrific policy,

why? as long as they charge $5 less per ticket, people don't care. it's a commodity business. >> even warren buffet bought an airline recently. >> yeah, well, he bought one before the '80s and lived through that. he talked about wonderful businesses, good prices. this is a lousy business and lousy price. obviously, beyond that, nothing i read about naval brigades going to the korean peninsula, missiles shot at syria. pick now to get into the airline business? driving energy prices up, people will hunker down. it's the wrong time. >> jamie, what about the general reason why somebody should invest in the airlines right now? >> sure. it's different this time. we have fewer airline -- >> brave to say that. >> than in any point before the first word war. we had an unpresencedented numb of years in the regulatory environment, u.s. airlines are the most profitable airlines anywhere on the planet. the airline industry in the united states, this is not a global observation, i agree

with, you know, many of your statements on a global perspective, but here in the united states, the industry evolved where we've not seen sufficient evolution yet, how the equity market treats this business. obviously, the very significant from berkshire hathaway is the example we have to see more of. >> who do you like? >> american, delta, united. those are the truly rating candidates. those are the airlines -- >> meaning they catch up to where the others are trading? >> look. if you're looking for industrial opportunities, i mean, airlines are cheap. you can almost always talk yourself out of an investment at any time. point to the macro. if some of those global, you know, risks are too much, you know, for an investor, there's domestic names, alaska airlines, for example. >> risk in a name like alaska. >> when you start with "it's different this time" american airlines up 80% since last july. i'm old fashioned.

buy in the dip. >> sure. >> i don't want to buy a lousy business in a spike. you can buy united $65 europe to east coast. how do you make money at that price? >> surement chances are they do not, and, you know, that's a problem, you know, for an analyst -- >> how do you compete with them if you're a consumer, you want that $65. you have to move in that direction. >> sure. sure. look, the industry is always going to be price competitive with a certain amount of capacity. the real difference between the american backbone and the base is corporate. you got business travelers, a much higher elasticity factor on the big three, whereas the point of sale is uniquely skewed to europe, a risk for them, not to make this about them, but if the u.s. continues to act in a way that gives our allies the perception that the u.s. is inhospitable to inbound tourism, that weighs much more heavily in europe than american delta or

united. >> bringing it back to where we started, you lump airlines together. are you saying there's no operational risk at united that this reveals making them less attractive than any of other airlines too? >> well, you think about the industry. there's not a ton of choice out there. travelers in chicago area, certainly, have the opportunity to fly united or american. you know, nobody, you know, outside one of your anchors today who lives in new jersey, nobody is going to look at this particular, you know, incident, and go a couple hours out of their way to avoid flying carrier x. >> with a low interest rate, you can start a new airline. 1300 new airlines in four40 yea. spirit and alee janet in the new regime. it's commodities, profit. they treat it like commodities issue and today from united, they treat the passengers like

commodities. it's not a business i feel good about investing in. >> we differ. >> i know. we're out of time. we must move on. we have to involuntarily stop right now. >> okay. all right. >> you'll be reassigned -- what was it? >> reaccommodated. >> jamie baker, david, good to see you. thank you forever joining us. when we return, the dow is down five points. >> just turned negative. the ceo of wells fargo, talking to him, tim sloan, about all that in just a few minutes. you're watching cnbc, first in business worldwide. siness world.

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♪ ♪ start trading today at etrade.com . coming up, seeing oil, following oil, of course, it continues to march ever higher. we're getting comfortable above noo range for both. wti now continues to move higher. up at $53, latest report on gasoline, up 9 cents a gallon in two weeks on the national average, and you had rbc over the weekend projecting that maybe oil goes another 20% higher from here for various reasons, so oil's very much in

the news for a mode here, and transports doing the same thing. highlighted that earlier, the traditional interrelationship between oil price and the price of the transports not merging today. you had the trucking industry, that's helping disperse buying there for the sector. ten year yield, the inflows sfwoo treasuries as we saw equities, especially in mu chum funds, but the yield on the ten year is volatile, but down. through it all, the dow had 130 today, down 40, and we're up a point right now as we begin the week here. >> it's a four day workweek. pass overstarting, traffic is later. get around new york. it's lovely if you're a new yorker, but -- >> gorgeous. >> key point is oil.

early march, going from 53, 46, to 53 in a month. a perfect u. >> that was a tail wind for the equity markets, but that's not the case now. >> the rally is the commodities seen recently. the production names, few groups on the upside. nice moves in that another interesting thing, a lot of the retailers rally. just we saw departments rallying, chatter about whole foods moving that independently, but dill lard, fred's, sears, even the awe motive stocks killed last week, sonic and all the other automotive names, retailers, up today. that was curious. the stocks so oversold, you get things like today, and you get

these guys following in. overall, very quiet. >> going out with a point gain on the dow. stick around. a very important interview coming up with the ceo, tim sloan, talking about the results of the six month investigation into the fake bank accounts scandal. that's coming up on the second hour of the closiing bell with kelly evans and company. kelly? ♪ >> thank you, bill. welcome. i'm kelly evans. let's see. i mean, we were up. we were down today on wall street. now it looks like we are just, you know, calling it even. the dow, they are hanging on to a gain of a point on the dow, 20657. settling out, of course, see if that's the case. the s&p 500, just a point and a half to get there. the nasdaq composite barely fractionally higher, and the russell 2,000 hanging on to a bigger gain throughout the session, closing up about .20%.

the dow up 95 points in the high, but we got that back and then some just to close a little higher. the s&p, worst performer this year. now wells fargo's board clawing back additional $75 million in compensation from the former ceo, john stumpf, and as a result of the bank account scandal, the board felt misled about the sales abuses. coming up, tim sloan joining us in minutes, on a first on cnbc interview to discuss. janet yellen p taking questions from the audience and from twitter at the university of michigan's ford school of public policy this hour. we are monitoring that. we'll bring you all the headlines and look forward to seeing what the twitter questions and answers may be. joining me on today's market action first, though, reuters, rob cox, and wealth management ceo, robert luna.

thank you for joining us. you know, a lot influx here on the macro front, corporate news stories and deals happening. overall, the markets ambling. >> they are looking for something to justify the great rally we've had since the election, and in new york city, you're going to start to get some measure of that with earnings. not so much in, like, what they say, what they earn in the quarter, but what they say. the guidance. if you get executives coming out saying, look, okay, we see this, we see that, growth there, above, you know, growth that was better than was projected, say, at the end of last year or in the third quarter, once you see that, people can relax and feel at ease with the levels that are actually justified. >> rob, you're shaking your head about united stock higher today. >> i don't get that. the stock's up, like, 1.5%. i think it closed at 1%. you have this, like, extraordinary pr debacle happen,

and yet the stock is up. thank you for pointing out before, also on a day oil is up, it doesn't make sense and makes you think that maybe the airline industry is just so fully all about ballistic or something that nobody seems to care about the impact that has on the customers. >> united closed higher a little bit less than 1%. robert luna, you are looking at amazon, upgrade, price target of 1100 bucks. we're talking about -- by the way, the great stoirks mory wit on it, but creating warehouse jobs, just not eating everything up, but does that tell us something to you about the market in general? technology leading the way up 11% this year? >> yeah, i think it does in general. kelly, look at stocks, in amazon, tesla, the big news surpassing gm is the most valuable auto maker out there. what the companies have in common is innovation. they are moving the goalposts on how the traditional game's been

played, so when you look at a market today that's fairly valued, some say overvalued, that ability to grow that top line is going to be coming increasingly important. investors are selective. correlations drop down. they are looking for those types of companies versus the companies that are only meeting earnings reports by, you know, cutting the expenses, financial engineering, those things, i think, are not moving forward as a stock. so those are the companies we're focusing on for the clients. >> rob, what do you think about the move in tesla, not just today, by the way, but up 45% this year, calling it, you know, the nation's most valuable auto maker, if that's true on the belt, but it's more than a car maker, right? >> if you talk to them, it's an energy company, right? >> right. >> that was argument made for merging with solar city. look to price to earnings ratios below ten time, and there's

tesla, on the other hand, trading at levels that are just almost inpossible to justify. i don't know. this -- you know, i think teslas are amazing automobiles. nothing but hope that the world becomes self-driving because i cannot stand it when other people drive, but i just so hard to try to understand the dichotomy there between these big companies that have huge auto market shares around the world and tesla, and it just starts to feel bubbly. >> you know, we talked a moment ago, rob, what happened in the airline space with that consolidation, but elsewhere in the transportations today, swift and knight were merging. >> yeah. >> just had one of the companies going public last week, and by the way, there's a self-driving car called auto uber owns, embroiled in lawsuits now, but nevertheless there's another industry where it seems like there's consolidation, deal making made, great exposure to the economy unless they'll be disrupted. >> they know what's coming down the pike, right?

truckers are really -- you look at it, they are so clearly going to be disrupted. these guys will be transportation logistics firms, companies like knight and auto, part of, as you said, uber. getting ahead of that, understanding what they have to do to deal with this, let's say it's 7-10 year horizon, you'd have to expect some sort of deep, sconsolidation or restructuring. >> you're seeing industries consolidating or piling in to the few growth companies that exist now. as much as we'd like to get the general growth, it's not quite there yet, right? >> no. i agree. so i mean, that's one of the things why you see companies like amazon moving the needle here in the market because they are getting that real tough line growth. you look at the other funds shifting, you look at a company like caterpillar, for example, i mean, the best there essentially is corporate tax cuts, infrastructure spending, and all these hypothesis created about

what could potentially happen if that doesn't happen, you're going to see the stocks, you know, crater 15-20%. it's about the organic growth in today's disruptive society there's fewer and fewer companies that are going to be successful. >> yes. so, robert luna, this is obviously something strategic others batted around, but is the trump trade on hiatus? serious risk maybe we don't get any deliverables in terms of growth and thing like that going forward? >> yeah, i think so. caterpillar's a great example of that. i think a lot of that optimism of what trump may or may not do is built into the stock, so if that doesn't happen, i don't see when you're trading at 18-20 time forward earnings what the catalyst would be moving forward. i'd be very concerned if i hang out in some of the trump trade names now. >> rob, what do you add? >> oh, i've been saying this for some time. you got baked in there a cut on the corporate earnings, you know, corporate tax rate, and you have infrastructure. you may have a combination. a company like caterpillar,

benefitting arguably from both, but these are really difficult things to get done. we have not had tax reform done since 1986, realtime before, and meantime, everyone you talk to about infrastructure agrees, oh, my god, we have to do it, right, left, center, everybody, but nobody -- it's just one of these extraordinary things where nobody thinks really optimistically that it'll actually get done, and so as we've seen just in the last week, a bit of sort of changing in the wording about the corporate -- the tax reform, and, oh, rather than august, well, sometime in the calendar year, you know, once that stuff gets pushed down and you already got at least half the benefit for that reflected in stock prices, look for something else. there may be things out there. that's what i said. people are looking for signs that there's other things, whether it's china not growing reasonably well, mining coming back, commodities in general doing better as we see with the

oil trade, but absent legislative success, it's going to be really hard to justify that. >> and, by the way, there's a bunch of ceos meeting with president trump tomorrow including musk, many others to talk about administration priorities, so we'll see what, if anything, comes out of that. the president meeting right now with white house budget chief reportedly after scrapping his tax reform plan. kayla has more. >> reporter: kelly, a lot of moving parts here at the white house despite the fact congress is on a two-week recess. the president is meeting with the budget director mic mick mulvaney. the press secretary said that mick mulvaney talked about reorganizing government, but they said it's a routine meeting to discuss matters at home for cabinet members and others. there's quite an interesting and high stakes background here, of course, april 28th deadline to pass a stopgap budge to keep the government funded, otherwise the

government shuts down. something the president does not want. that is the background here. there's also some stiff opposition to the fact the president wants to include funding for his border wall in that budget proposal. something that republicans have said they would not vote for. we'll see if we get any news out of that meeting with mick and the president, sean spicer saying muvaney would be there tomorrow to give more on the record comments. i want to talk about taxes as well because there is an "ap" report last night they 15 basically the white house is going back to the drawing board on tax reform, scrapping the campaign plan that donald trump talked about for well over 18 months at this point, but today sean spicer said in the briefing that's not true, that the campaign plan is still the starting point for tax reform. here's what he said. >> that's a backbone, but i think that what you're seeing is us going through this process of his economic team, everyone from secretary mnuchin, gary cohen

and others sitting down internally and beginning that process of meeting with groups that have been advocating for tax reform since 1986. >> reporter: it is clear the white housements to solicit a diverse set of reviews on tax reform with ideas floated to appeal to democrats like a cut in the payroll tax or eventually a carbon tax. they are sending out balloons to see what sticks with democratic lawmakers because they don't want to have a repeat of health care. it does seem the administration is acknowledging that august time frame might be slightly ambitious. spicer said it would be great opportunity to have it done by august, but stopped just short of making it commitment, kelly, to that deadline. >> all right, kayla, thank you. white house saying that the campaign plan is still the starting appointment. rob, robert, turning to you briefly on this. you know, rob cox, is it possible, look, if this is a near term catalyst in any case, there's been a flurry of deal

activity. it's everywhere you look. it's the ipos. you know, it's all activist stakes, janet the latest position and whole foods questions, changing the ceo. could those animal spirits do something for the market? >> yeah, i think. one of the things i'm looking forward to this week is hearing and looking at the results from the big banks. there's citigroup, jpmorgan, and wells. you are starting to see, you know, you'll certainly see those animal spirits reflencted in stuff that kind of buoys this stuff, right? >> yeah. >> it's possible. again, it's, you don't have to believe it you're going to get all this amazing stuff that is buoying the market up now, but you need to get some things so you don't get the negative. the growth is actually going to be at 2% or more, that the global economy's going good. that europe will be fine, that

all things come together, and you could have a pretty decent, you know, rest of the year, even if we don't get some of these things, like tax cuts or tax reform until the end of the year. >> all right. gentlem gentlemen, thank you for joining us. robert cox and robert luna. >> pleasure, thanks, kelly. zblrvelg next guest is so big bill stuck around. >> wonder who gets me to stick around, right? >> in a green jacket, the champion of the golfing world in his country of spain. >> you're the toast to the golfing world, home country, beat out all the other great sporting events in spain on the front page of your newspapers today, and now you're at the new york stock exchange, the newest masters champion, sergio garcia. you look comfortable in the jacket. >> thank you, bill. >> congratulations. >> good to be here. >> has it sunk in yet? >> yes, i think so. it's been amazing. obviously, you know, when it's been a long time coming.

>> for those who don't know, you waited 18 years. went pro in 1999. >> yeah. >> had a great start to the career, won more than thirty times around the world, but you didn't have a major like the masters until yesterday. >> yes. i've been close. i've been close, but for some reason, i have not been able to go through it, and it was so nice to be able to do it yesterday at augusta against justin rose, a good friend. >> how did that feel with that jacket put on you yesterday? >> it was great. i don't know, mixed emotions, i would say. i think it was a combination of joy and -- not relief because i've always said it that i was very happy that the kind of career i was having, but just proud and so happy. now not only for myself, but for my team and spain. >> for a lot of guys who win the masters or any major for the

first time, they are usually either a young guy, just getting a career started, and this is a huge boost to their career. they get endorsement deals they never imagined they could have. then there are guys who are journeyman through the careers, had a midland career, and they breakthrough. you're a different cat. you had a great career until this point, but no major. will this impact on your career other than just beginning a legacy of some kind? >> well, i think it's definitely the icing on the cake. making my career that much better now, even though i said i was very happy with the way my career was going, and i knew that i was still, i'm young, i'm still 37, healthy, and will have a lot of chances to win majors, and for me, it happened yesterday, and now we got to keep working hard to make it more. >> one or two questions.

one goes back to what bill said earlier, you know, how do you tell people to persist in something when it feels like you might psych you're out thinking i'm going to choke or i'm not going to deliver this? what's the mental process to overcome that like? >> well, i think it is just a matter of keep going. we all go through tough moments, and i've been through them. that doesn't mean that you have to forget what got you there or forget your ability that you have, and i always had that belief in me that i could do it. i just needed to have the right frame of mind. i knew i had the game. i was so calm yesterday on the course, even in the tough moments, 10 or 11, i was still comfortable, confident, and i felt that i was still had

chances coming in, and because of that, i was able to do it. >> you were in the groove. we like to ask, what's the biggest money mistakes that you've made? that you learned from. >> oh, one of the -- probably one of the biggest, at my own blame, fortunate to do, one of the biggest mistakes i did was bought a plane from hawker brand new, and then they went bankrupt, and, obviously, lost a lot of money there, but fortunately, for me, i've done great investments. i have great people that help me with that -- >> what are some investments? what's been a success for you? >> we have done different kind of investments in china, in yump, some in the u.s., which is real estate, some other companies, hedge funds, stuff like that, and so one of my good

frenz li friends lives in new york with a hedge fund, and he's really amazing, and so, you know, we've been luck any to have some got investments here and there, and it's kind of counteracted the bad ones, i guess. >> before you go, now that you won the masters, does that mellow you out to go eeasy on u on ryder cup? >> no chance. >> i was afraid you'd say that. >> some things are here, and you can't change that. >> again, congratulations. >> thank you, guys. >> a long time coming, how relieved and happy you must pao follow you. >> thank you. >> i'll see you tomorrow. >> and the white house reports a major rift between president trump's advisers, and up next, discussing whether a shakeup could be in the works, and which sectors might benefit from one side winning out versus the

other. don't miss it, interviewing tim sloan in the millions of clawbacks over the bank's fake account scandal. account scandal. dear predictable, there's no other way to say this.candal. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free.

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welcome back. the white house is denying a report that it's scrapping its tax reform plan which had

potentially impacted these markets earlier today. it all raised questions about if the administration will meet its august deadline on tax reform and what a potential shakeup at the white house means for the plans and for the markets. for more, let's bring in "politico" and isi. welcome to you both, iliana, where do we stand at this point in terms of progress on tax and any shakeup in the administration? >> you know, it doesn't look like there's going to be a shakeup in the administration immediately, but anyone who tells you they know do you want know. what we know for a fact is that the president has been frustrated by the constant feuding inside the white house. it looks like he's not making any immediate change right now. what's unique about the administration is that the personnel battles taking place inside the white house between his chief strategist steve bannon and son-in-law and head of the national economic kou counselor could have real policy

implications, bannon biggest on border adjustment tax, and gary opposes that. the way it shakes out really could have an effect on what this tax reform package looks like in the end, and that's why it -- why markets watch this so closely. >> terry, you're suggesting the same thing. what's the sectors in particular you watch here as bell weatherers? >> well, what i watch simply are retailers and refiners. they are the ones complaining the loudest about the border adjustment tax, and if they don't -- if that doesn't happen, then they're benefitting from it. our own view has been border adjustability is unlikely to happen and we're at 15% to 20% that it does. we see the pragmatists as winning the battle. >> and do you think they are winning, quote-on-quote, regardless of shakeups reported that does or does not happen? >> yeah, i do. the president clearly is

interested in creative tension, and creative tension can be a good thing. look at the reagan administration as an example of that. somebody's actually got to make the final call for the play, and, you know, this white house is learning as it goes along, and we're about to see whether it learns that. there's a place in this administration both for the gary cohens and jareds and steve, and they got to shake that out. >> this creative tension, that sounds like the name of the next big thinking book, the big thinking -- you know, if you don't write it, i will or sell it to somebody. >> we'll collaborate. >> yeah, there we go. that's great. iliana, what about you mentioning the markets here, obviously, they'll take the impact one way or another. what are you watching? >> you know, what's so interesting about this white house is that i think the president himself, he doesn't have a real clear point of view on policy, but there's dualing tensions inside him.

he was for a long time, you know, a new york democrat, and yet he ran as a populist, and i think this tension between steve on the one hand, jared and gary on the other represent these dualing tensions inside the president, and so it's interesting going forward to see which one prevails. >> yeah. >> you know, this tax reform package, and whether the white house,ist, puts outs a tax reform package or lets congress continue to drive it as they did on health care. do they change the strategy or do they go with the same thing, letting paul ryan drive this as they did on health care reform. >> and, terry, where does that leave financials, for example, the pharmaceuticals, obviously, under the -- what am i trying to say, not -- microscope, he said lately, and there's the auto sector as well. there's a lot of places you can look for policy impact. >> oh, sure there are, absolutely. you know, everybody's going on today about, you know, whether the trump tax plan is delayed or

not, and, yeah, think about the miss of two weeks ago, we were making a big pivot to tax reform, and then at the end of last week, house republicans tried to resurrect the aca. there's good reasons they want to do that, not least of which is it is dropping the budget baseline making aggressive tax reform more positive, but if they continue that, the effective of it will be to delay tax reform essentially until the end of calendar 2017. if they can't hit august, you got september and october taken up with full year spending bills and the debt ceiling meaning that you're actually not going to get to tax reform before november or december. >> yeah. that's why we got people saying the trump trade is stalled and so forth, but the markets are taking it in stride right now. guys, thank you both. some good creative tension i thought in the segment. >> fulfilling orders quickly,

helping to fuel wages, big gains as companies struggle to staff warehouses and create a war over workers between retail giants like amazon and walmart. more coming up. wells fargo's ceo joining us in a first on cnbc interview to discuss the new clawbacks against the predecessor and another former executive. stay with us. stay with us. c'mon in, pop pop! happy birthday! i survived a heart attack. i'm doing all i can to keep from having another one.

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jay z pulled music from spotify and apple while some album es and singles remain, but fans of the rapper have to move to his streaming music outlet, title. title trails apple and spotify in total scrub scribers, whole foods climbs 10% today after janet partners took 9% stake in the chain. they are speeding up the turn around sales and considering a sale. brittic regulators are investigating the barclay's ceo in the handling of a whistle blower case. they attempted to internal a company whistle blower and the case is looked into in britain and the u.s. barclays says it grants whistle blowers anonymity, and the bank promised to cut his bonus. here's a news update. >> hi, kelly.

watching a chaotic scene in a san bernardino elementary school classroom. we know two adults were killed, including a teacher, and the police are calling it a murder-suicide. two students are injured, but we don't know how seriously, and right now, parties are trying to reunite with their kids moved to a local college for safety. a judge in chicago was gunned down outside his home this morning. police say a 66-year-old cook county associate judge, miles, spoke with the gunman outside his house before being shot. judge miles was involved in high profile cases. tear gas was in venezuela as speak took to the streets, throwing rocks at the police, demanding new elections, and, in fact, there's been ten days of protests calling for the oust of the president. a wrong turn into the right place for a baby seal this weekend. it stranded itself on the u.s. coast guard's training center in new jersey.

coast guard rescued the poor thing and brought it to a marine animal stranded center. if you're going to strand yourself, good thing you found the coast guard. who better? >> i needed the baby seal after that news, holy moly. >> it was a lot of news. >> thank you so much. president trump's pick to run the fda has close ties to the drug industry. up next, exactly who scott gotlieb is and whether it's a pick for stocks. new survey finds which retailers are hot with teenagers and which are not. what's in and out still to come on "closing bell." ing bell." hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face.

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welcome back. we had big gains at the open, but tiny ones at the close. dow up less than two points and s&p up a point and a half to 57, and nasdaq up three, russell the big performer all day. the big board initiating corporate pay clawbacks after concluding a six month long investigation on the firm's retail banking sales practices in the light of the fake bank

scandal. they scouted out two for criticism and less critical of tim sloan. our own will sat down with steven singer to ask why. >> tim had little contact with the sales practice issue by virtue he was in wholesale bank, a different part of wells forgo, and then after that, before that, excuse me, it was cfo, and so his only direct contact with the community bankfuls during the brief period when he was chief operating officer. he made the assessment and quickly decided to change at leadership. >> and joining us now by phone in a first on cnbc interview is wells fargo ceo tim sloan with l wilfred frost. thank you, both. >> thank you for joining us. >> caller: you're welcome. >> jumping into this. the report was very clear, tolstedt's failing, and clear of the board for failing to notice

the failings soonerment once you took over, though, as president and coo as steve sanger said, you ended her employment fairly quickly. what did you notice that others missed? >> caller: well, great question. i think that once i became president and chief operating officer in november 2015, i saturday down and made a fresh assessment to carry. i worked with her on things i asked her to improve on, but we came to the conclusion within a few months it made sense for her to move on, and what i saw was an executive that while having a successful career had some challenges in terms of working with others, had not dealt as aggressively with some of the sale practice issues as she should have, and as i looked forward in terms of where we were taking our retail business, it just made sense to make a change, and i couldn't be more

pleased with mary mack, the new leader of community banking, she's doing a terrific job. >> what about pre-ceo when you were cfo and had prior higher roles in the bank. could you have been more proactive even if not directly your responsibility? >> caller: very fair question. i've been very clear since i stepped into this ceo role that when i look back i should have and could have done things differently. once the issues made its way to the corporate leadership level, and in hindsight, i wish we would have moved more quickly. we would have made decisions, for example, that we made last fall, which was to end the incentive compensation plan in the community bank, so, gosh, you know, you look back and

hindsight's a great thing. are there things you should do differently? absolutely. i'm really focused now on being the ceo of wells fargo and moving forward and implementing all the changes we've made and rebuilding trust with the shareholders. >> tim, i want to read back an e-mail to you sent to you by john stumpf, the then ceo, on may the 17th, 2015, after the filing of the lawsuit. bear with me for this. >> caller: sure. >> john stumpf, saying, i worked over the weekend in the issue, i feel for carrie and her team, we do such a good job in this area. i'll fight to the finish. do you know only 1% of the people lose jobs for gaming the system, and two-thirds of those are for gaming or monitoring the system, ie changing phone numbers, et cetera, nothing could be further from the truth on forcing products on customers. in any case, right will win, and we are right. did some do things wrong? you bet, but that's called life.

this is not systemic. that was an e-mail sent to you in may 2017. at that moment -- sorry, 2015, excuse me. at that moment in may 2015, did you realize it was systemic? what actions did you personally take immediately then, even though you were not ceo yet? >> caller: well, that was after the time period, wilfred, that the issue had been elevated to the operating committee of which i was a member of at that time. i was head of the wholesale bank, and, again, i think at that point, we put corporate resources on it. we put a lot more people, a group of folks from across the company in trying to make changes, and you could see in all the numbers and the board was able to demonstrate that in their investigation, and that the steps that we were taking were having a positive impact, but, again, i think in hie hindsight, we should have moved

faster. i highlight again the fact i wish we ended the incentive compensation plan we had in the community bank. we've done that. now it's about moving forward. i mean, i'm so excited with the fact that in our new incentive compensation plan, for example, we're focused on service, adv e advice, customer service, how the team is working together, how we're going relationships. that's just one example of the many changes that we're making at the company now that i've become ceo. >> mr. sloan, does this annou e announcement and clawbacks indicate this is the end of the chapter as far as you are concerned at wells fargo? i ask because elizabeth warren tweeted the clawback is a good step, but certainly investigation is no substitute for a thorough government investigation. will there be anything further that you're aware of into this matter, or is this as far as you are concerned the end of it? >> caller: well, the board was clear in its report that they are invest gaiting is over with. there are other activities that

are going on in terms of -- at the justice department, and in other government agencies, and we're continuing to work with our regulators, and so we have much more work to do in terms of rebilling trust with all of our stake holders, and making things right with our customers, so, no, i don't think this is a chapter that's over with. what happened today was the board released its report, a very comprehensive report, of some of the issues that occurred at the company, mistakes that we've made, and my job is as the ceo to fix them and move forward. >> against a backdrop that's influx. i have to ask because it's been reported that gary cohen, former banking colleague of yours, just means he was a kpor tcompetitor goldman sachs wants to repeal

stiegl. do you have an opinion on that whether the industry goes one way or another? >> caller: sure, fair question. a lot of change from the regulatory standpoint discussed in the industry. i think our primary focus has is relates to regulation is to ensure we have the right regulation focused on our customers so that we can provide them with the right products and services, and what gary actually needs in terms of repealing glas glas glass-steigl, i don't know for sure. we are integrated with how we provide products and services to our corporate banking customers, for example, and i think we do a terrific job, a terrific team within the investment banking group. i hope that's not the case because i think investment banking done right is very beneficial to our customers as part of the overall relationship. >> tim, just want to jump back in again and on the call earlier today with the need ya, you

outlined you hired back around about a thousand employees since september, many of whom left relating to the sales culture issue. have those round about thousand employees, therefore, been mistreated by the bank in the past in order to now be rehired? >> fair question. we've hired many more than a thousand people at wells fargo since last fall, but the point i was making there is that if there's any former team member that'd like to come back to wells fargo who may have left the company because they were uncomfortable with the sales culture in the retail bank, we'd love to have them back, and many of those in the thousand number would fall into that category. they did -- and the fact they came back to the company i think is a terrific sign in terms how outside parties view changes we're making at the company for

the good. in fact, in addition to that, another interesting indicator is the fact that our retention is actually increasing, particularly in our retail bank because our team members are saying they like all the changes that we've made. >> tim, thank you for your time and joining us today. wells fargo's ceo, tim sloan, will, also thunderstorm warnings for the work you did on this as well. >> caller: thank you very much. consumer dollars, now competing for workers'. we'll have more after this. think again.

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not bad. welcome back. fed chair janet yellen taking questions at the university of michigan's ford school of public policy. our steve leisman listened in with highlights, steve? >> reporter: thank you very much, kelly. fed chair yellen answering questions in michigan says the economy's pretty healthy right now saying the appropriate stance of policy is close to neutral and explained for the audience what she means by that. >> before we ever put foot press down on the gas pedal trying to give the economy all the oomph we possibly could, now allowing the economy to kind of coast and remain on an even keel to give it some gas, but not so much that we're pressing down hard on the accelerator. that's a better stance of monetary policy.

>> reporter: she has not spoken or talked about the balance sheet yet, but said gradual rate hikes are appropriate and doesn't want to raise rates too quickly. on the economy, kelly, saying it's growing moderately, will grow moderately, consumers doing well, business investments, says, showing strength, housing healthier, and the global economy, even, slightly more robust. listening and coming back with any other details that are worth reporting. >> hoping for twitter questions, steve, thank you. jobs are floundering across the entire retail sector despite the disappointing march report. where the jobs are and why companies are having a hard time filling positions. coming up on "fast money" forget u.s. stalks, why one of the year's hottest trade is just starting. back right after this. ck right f the customer app will be live monday. can we at least analyze customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian...

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welcome back. friday's jobs report was pretty disappointing, showed that the retail sector shed 30,000 jobs last month. while the industry continues to deal with more and more store closings, online is creating jobs in another area. e-commerce amazon, there's actually so much demand for these type of workers, it's driving up pay and wage rates. joining us is tom gimble and brian. thank you both for joining us. tom, this is a great story. wages are up 6%. it's creating a war over talent, so to speak n these industries and helping a lot of these smaller areas be able to find employment for their workers. is this sustainable? >> it is sustainable. what we're looking at is a change from a real skills gap to

a psychological skills gap. so where do the retail workers that are getting disposed of, where do they go? well, now there's jobs that they can do from a skill set perspective. it's just not in the store doing the more white collar retail. they've got to go into the warehouse. but those jobs are in big urban markets. it's the last mile of the distribution process that people are talking about, whether it's in brooklyn, new york, or the south side of chicago, or outside of l.a. and san francisco. those jobs are there and they're in urban markets. >> brian, who is it taking a lot of these positions? are they the more white collar workers? i guess in my mind i thought it was people way layed by the construction industry or long-temd unemployed. >> kelly, you're right. it's actually the hourly associates, basically the blue collar associates that are taking these jobs in the logistics industry. >> and when that's the case, now it seems like there's quite a huge demand for them. i can't believe we're raising the question, because it seems

like for so long the unemployment rate has been woefully high there. >> as you know, the unemployment rate is around 4.5%. in large lo jgistics hubs, in t more rural areas there's large distribution centers, where land is inexpensive and it has great access to transportation hubs, that's where we're seeing these really large distribution centers. and therefore, the high demand for labor. >> brian, we read today labor is 6% over the past year. can that keep going? >> yeah. i think we're going to stee wages increase, by the way, to put it in per sxek tiff, wages were very, very flat for 12 years straight, 20 2 to 2014. now we're seeing a huge increase of $1.50 or $2 or even $3 an hour for many of these jobs. i think we're going to see it

increase that way until we get to an average wage of close to $14 an hour. >> tom, another interesting point from all of this was that ecommerce warehouses create two to three times as many jobs as regular warehouses. there's not only a demand for workers, but there seems to be an accelerating demand. do you take that as a sign of, you know, promise again, even though these might be jobs that you say perhaps there are people who would prefer not to take them, or given a choice between doing nothing, or working, they feel like that's not the place for me? >> that's the real issue, doing nothing or working. what brian referred to in the rural areas, that's exactly right, the blue collar workers that have been unemployed for a while due to the economy. but in the urban markets, this is really where the hot button is, is whether it's amazon or other big distribution companies, they're putting these facilities in what the real estate and logistics companies are calling that last mile. so they want to have it near urban markets.

the real issue is, the jobs are there. it's whether the downsized retail employees, and other white collar folks, where they can't get the jobs that are moving upstream, are willing to take jobs for a better hourly rate, working in the warehouse facility. now, what amazon and others are facing is, there's not going to be a lot of employee loyalty because everybody knows the drones are coming. the robot, the ais, it's coming. so it's not going to be a job five years from now, but for the next 24 months, these jobs are real. >> do you agree with that, brian, these jobs won't be around? >> yeah, i think there's so many people working in the logistics world, that many of these jobs will be around. tom is right, we'll lose some jobs to the drone delivery. but there's still an awful lot of labor available. >> yeah. >> and jobs available in that work force. >> because it seems to me, that overall, the message to everybody has been, you know, that the robots are taking over, and they're destroying all these jobs. yet you can look at the shift

and see it's actually creating quite a few, and increasing wages, too. that's all a great sign. thank you both for joining us. prert you explaining a little more what's happening there. that does it for "closing bell." better hurry up and get those warehouse jobs. "fast money" begins right now. "fast money" starts right now. overlooking new york city's times square, i'm melissa lee. tonight on fast, it is the ultimate market showdown between growth and value stocks. there's a clear winner so far this year. but is the trend here to stay. the chart masters are here to break it down. the manager of a hedge fund crushing the market said this could be your best chance to buy one of the hottest trades. snapchat is reigning supreme as the most-used apps for teens. we've got a special report. first we start with tesla, the stock on an absol