expect to keep it. possession is nine tenths of the law. >> yes, yes, yes. >> exactly. >> address the china issue before it becomes a real problem. >> absolutely. >> yep. >> thank you for watching "power lunch," and "closing bell" starts right now. ♪ welcome to the closing bell, everybody, i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. another interesting day. as the post-election rally stalled here? president trump says he's going to get rid of dodd-frank and financial stocks are still lower on the day. there was a time they would have rallied on that. we'll talk about whether the market is looking for more action out of washington these days. >> the dow down much worse, only down 20 points right now. >> new developments in the united passenger depackle you heard about. the man dragged off the plane

has been identified, and there's growing backlash from one of united most lucrative overseas retailer. >> full signs of the issue, former pilot, someone who was a travelers association to give us both sides of what's become a very controversial issue. >> plus, we have the only silicon valley's own nfl team, the 49er ceo, jed york joining us, live ringing the closing bell, but before that, talking business, nfl ratings, ticket price, and a lot more coming up. beginning with president trump's meeting with top ceos at the white house on infrastructure, tax reform, other key issues facing the administration right now. we are at the white house with a rundown for us. >> bill, it's a familiar sight to see the president gathering ceos from various industries here at the white house. today's meeting was a follow-up for executives of some of the largest multinational companies around, part of the strategic

and policy forum, associated by and intention to discuss tax reform, infrastructure, trade, education, the budget, transportation, and a host of other issues. when the president spoke to reporters that came into the room, he used the opportunity to discuss nafta, saying administration has had pleasant surprises coming, despite the fact the white house missed a self-impose deadline beginning/ dangled a carrot to the financial6hc$ industry on dodd-frank. listen. getting rid of some, obviously, getting rid of many, putting many, many people back to work. >> reporter: it's unclear what a major elimination exactly means. there is some work that can be done at the regulatory level to roll back individual parts of the law or ease regulatory burden, but so far the law

itself requires heavy5k8s liftiy congress which is preoccupied by both health care and tax reform, not to mention it's on recess president choose to speak about dodd-frank in that particular meeting today because it was clear he was speaking beyond that room and beyond the audience he had. there were no regional banks or universal banks, no companies most affected by that particular law. interesting choice of topic by the president despite the fact he has a high powered audience with 0,iñhim. >> financials do seem to be shrugging it off today. thank you. now, the president escorted ceos of biggest companies, there's optimism in small kate rogers with more.ngy9s- kate? >> reporter: main street on the mitch dipped for the second month in a row, but holding at historically high levels. the nfib reads6wn ofuby march - 104.7. above the average of 98.uáid8pl

and earnings trends show gains in the readings. the idea that optimism is translating into hiring and spending. another thing, uncertainty index in this month's reading hit 93, the second highest reading in the survey's history. this could be driven in part by government policy and lack of ability to plan small business owners now have begin the óus washington, d.c. $p mention small business today when taking executive action on dodd-frank. take a listen. >> putting many, many of the people backuúiç work. the banks will be able toñfú'ñ again. so many people come to see me. i see them all the time, small businesses. they borrow from banks. never had a problem, five, six, seven ten years ago. they had great bankers. they had great relationships. now they can't borrow.zhuc$d8>>, though, that's not necessarily the case. in fact, 4% of business owners reported that all of their

borrowing needs were not wxdwrñ that'⌟,a historically low number and more than half said they did not want a loan at all. back over to you. >> all right. kate rogers, thanks. see you later. closing bell exchange today. the dow down 145 points at the low on the open this morning, and now down 22 as we head to the close. joining us today, jared from investments at post nine, next to peter costas, cnbc contributor from empire execution, and for a hat trick of italian-americans, rick santelli is in chicago at the cme as well. welcome, all you guys. peter, here we go again. the open this morning, the big decline -- okay, so we have breaking news. so stop right there.7$ let's get toqañ phil lebeau wit breaking news on united. this ought to be interesting. jey

waiting5?oyairyíor for the ful ñ badd4w>ñ the situation was bumping that chicago to louisville on sunday. here's what oscar ar'k munoz red arpñthe team and&public. occurred on thì8 flight elicited responses from us, outrage, @

to you'll get them saying, we screwed up, and we feel bad about this, and we're going to take action because of what happened on sunday night. oscar munoz could not be anymore clear in the statement they truly realize now just how bad that situation was on sunday. >> look, if this had come out within a couple hours of the whole thing, that's one thing. i think it's more accurately reflects how everyone feels in watching it. >> feels disinjen genuine here. >> the question is, is this enough? people saying, well, sure, you got dragged through the mud on social media worldwide, of course you're going to come out and say, oh, we feel terrible about this. i think oscar munoz, give him credit at a minimum, they said publicly this was terrible. what we did was wrong. the processes were wrong. now let's see if they can take that next step and not just issue a statement, but truly

come out and try to convince people that they are going to change how they operate in terms of these bumping procedures, et cetera. >> the other legitimate question we have is now, i didn't know this could happen to me, so it would also be helpful if united could explain a little bit as to whose responsibility this is. you, like most journalists, calling, trying to figure out, you know, do you call the police? do you call transit authority? how do you know if you, as a passenger, can be forcibly remove? >> the answer is that anybody can be removed from an aircraft if there's justification. in other words, just because you sit on an airplane does not mean you cannot be removed from the aircraft. all airlines have that right. having said that, that's not the situation we're looking at in terms of what happened on sunday. many people are looking at this and saying, did they really need to go this far by calling in airport security? couldn't they have handled this

better by offering more money or by saying, look, what other ways are there to avoid this situation? so you're right. a lot of people are now saying, i did not realize i could get bumped from a flight once i'm sitting down on that plane, and not only people who travel all the time are thinking about this, but you can bet all of the airline ceos, gate personnel, flight crews, they are giving themselves, thinking to themselves, okay, how do we handle this in the future? >> phil, a quick question. there's outrage in china where they feel, perhaps, he was targeted for being asian. is there anything united's done with the statement or otherwise to address that specific aspect? >> they don't address that. i think united's feeling is iä÷ ú

+ here. a moment. association. 3úgxfnfoç÷(h:]ñzlnñ passengez$ ìc% >> yes. trade association for the travel and tourism. áv travel experience was ended by unpleasant travel. the state of air travel is in a questionable shape at best, and we're in this era of disruption where hopeful -- that this opportunity and this unfortunate incident leads to further

thought and interest in disrupting the industry and empowering consumers. >> you're a former pilot. i'm sure you experienced, you know, some odd situations, ever seen anything like this? what do you think of how it was handled by those folks at united? >> well, i mean, the folks at united did what they were supposed to do. just because you buy a ticket doesn't guarantee you get to travel. a small percentage of people that buy tickets do not get to board or travel. >> this man got to board, and number two, he's unceremoniously dragged off the flight when he refused to get off. >> he was dragged because he put up a fight. the airline has a right to remove you from a flight, and in this particular case, they had an aircraft on the ground. they needed a crew down, the

crew was not on the airplane. the passengers on the other end on that flight would have been put on the ground. they wouldn't have flown. the guy made a big mistake in the refusing to get off the airplane. the other three got off with no problem. i had flights when same thing happened. i don't figure i had one that they had so, you know, somebody forcibly pulled off, but i had flights where they called the police and the police came on the airplane, and, said, sir, you have to leave. the person finally realized that he was going to have to leave. so the -- again, when you buy a ticket, there's no guarantee, there's not 100% guarantee you're going to travel, period. >> is there a way to lobby to kind of get some sort of -- i don't know guarantee is the right word, i don't know if there's a insurance situation, but feels as though what happened in this case was an

obvious escalation from what we are used to dealing with on an airplane. >> this is an interesting piece behind the curtain and long last, and based on what we're hear right now, there should be an expectation on the part of travelers that they're entitled to something for having reserved their ticket. there's a bit on seinfeld about holding the reservation. what are travelers entitled to? for too long the legacy carriers and they have dominated policymaking, and it's about time for that to go be rebalanced as we approach infrastructure and faa reauthorization and authority to bring more pro-growth, pro connectivity, protraveler policy to bear rather than what's best for the airline. to be frank, have been boasting about record profits to wall street while at the same time creating poverty in washington, d.c. >> phil, you've been covering

the industry for a long time, you know the players. do you think this leads to changes in the rules or procedures or something, or will this just end up being a punch line we'll forget about? >> it's definitely going to be a punch line for some time to come. united to chicago, people are sni snickering and joking boarding the plane today. that will continue for some time. in terms of changes, i think you're never going it see them, the industry, eliminate the idea of bumping passengers. i think what you will see is all airlines starting with united saying, how far do we go? do we have to say, okay, we're going to go beyond the 1350, 1,350 dollars we're capped at in terms of offering people to leave a flight. i've been on those flights, and, bill, you have too. at some point, you offer people $1200, most people, not most, but there are some people, young people in their 20s flying together, who are, like, hey, that's not a bad deal. >> everybody has a price.

>> everybody has their price. that's what you're going to see change in the industry. >> would you echo that? again, if you just gave companies wherewithal, pay more to avoid this outcry, more would take it. >> across the economy, society, and beyond america, it's an era of empowerment and disruption, and right now, the airlines are daring people to make other choices. the part that they have going for it is they got the game rigged to control their power, but at some point, prizing politicians say enough is enough, and the fox is no longer in charge of the hen house here. we have to take care of travelers because that'll become people's expectation. it's an expectation of empowerment, expectation of being treated fairly, expectation of transparency, and this is sort of a holdover from the old era, and now there seems to be begging for disruption of sorts. >> all right. giving you the last word here,

and just briefly, i mean, do you sense we need changes? i know that we should all be reading the fine print on our tickets and understand exactly what we're buying when we get a tickets. >> right. >> but at the same time, don't we need to maybe change procedures where the people are not allowed to get on the plane, and then you unceremoniously pull them off in whatever method? at least make that change? >> no. it'll never happen. it can't happen. you don't know what's going to happen before the plane leaves. you could put somebody on, all the sudden, you got to weight and balance problem, or, you know, the person is disruptive. or you need to deadhead a crew. that'll never happen. the airline has too much power. nothing's going to change. it's going to be the same way. airlines are interested in one thing, the bottom line profit. it will go away tomorrow, a week from tomorrow, but it'll go away. >> and, by the way, they put forth a strongly worded statement, doing the review to

find out what happened. we'll know more in a bit. thank you, both, for joining us. phil, thank you for the news. former american airline ceo bob crandall is here to talk about how he would have handled the situation. looking forward to that. >> indeed. >> a quick break, shall we? 45 minutes to go, trying to get back to the exchange. the dow down 50 points, s&p's down 9, the nasdaq down. russell positive, but getting to the lows of the session seen earlier. coming up, look at the stocks affected by new guidelines of prostate cancer screenings, and big business of football joined by jed york. you're watching cnbc, first in business worldwide. think again.

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welcome back. the down and out day for wall street. the industrial average down 145 points at the open this morning, down 50 now, nasdaq down, the russell is up six points at this hour. we have an ipo to tell you about.

abdul air, brazil's third largest airline by passenger pricing american receipts of the initial public offering at $20.06 a share, and it was a zest. up 7.8%. delayed from last week, was it? >> a couple years before that. >> right. >> finally made it. >> all right. let's -- where we were? closing bell exchange for the tuesday now. once again, we welcome back wisdom tree investment, empire executions, and rick in chicago. thank you, guys, for the patience now. we'll see you now and take off or something. another one of those times, peter, where we were down and prevailing wisdom was the geopolitical tensions with north korea and syria and so forth, but buy the difference came in after all. >> resilience is here, and i mean, i said this last week -- >> yeah. >> it's starting to get on my

nerves, this resilience. the market does need to correct. i do think that. i've. saying that for months, but, yeah, there's a resilience. you look at the news over in different news sources saying, you know, there's more and more tension. the geopolitical risk is expanding, growing, and i still think it is. i still think that that's going to be something we have to watch. you know, i don't want to look at something and say, well, we rallied 110 points. that risk is off the table. it's not. i mean, we're still looking at that. that could potentially be something a lot longer term than an air strike in syria. >> the volatility today, you know, the measure we look at, the vix, anyway, just seeing nothing, and then it was up nearly 16, and the markets hung in there, still elevated. what's that say to you? just happy to see it? >> well, says to me there's volatility building, and part is what we are seeing on the korean

peninsula, a crisis building for two decades and it's on president trump's desk. he has to deal with it. he's also going to have to deal with how do you govern in a city with three parties vying for par power. he needs to get two of the three parties aligned behind him in order to pass anything. the market is really giving him the benefit of the doubt that something gets passed, but we're in a wait and see mode to see what can happen. >> and, rick, gold's up, yield down, treasuries, is that hardly the same story for what we've been seeing affecting equities today, do you think? >> yeah. sma as a matter of fact, i understand we have a sense of the way it's behaving, moving ground, but we're about to get a close for the year, looks to me, as we trade slightly under 230. last monday was thee low of 232, and now it's just a big area, i looked at for so long, selling in the 20 15, 2027, two months o

take it out. that should be good support. you know, i get it all trying to, you know, tie up geopolitics with actual politics. it's one different point of view here, but today's talk, it's about flows and the president wants to get rid of dodd-frank. whether he can, what i know for sure that last year, the president before this president, president obama, that 81,640 pages of regulations. no president ever had more than 80,000 pages. those regs cost americans $2 trillion a year. what i can say for sure it's not going to add more pages. to me, that's also kind of a price of admission when you look at it from that point. >> just the issues being as serious as they are, not making light of it, but we've had so little in many ways, volume,

seeing correlations pick up again, seeing that fright to safety and the fact volatility picks up, creating a trading environment in that is that good, and in the sense that we have not been able to see now -- or better if we were in that rally mode where there's no correlation at all? >> typically, when you see correlations tipping up across, that's a sign risk is increasing in the market. if that continues to happen, that would be another reason. i would just say it's tremendous inflows into equities since the election, and that's what's driving prices higher. $13 billion, and emerging market equities this quarter. >> right. >> talk about that. i mean, you've seen a huge inflow into these emerging market etfs. >> yeah. >> at a time we thought we were in the midst of a trump rally. what do you think that's about? >> people are hedging. if you don't get a trump fiscal plan, the other side of the trade is emerging markets because it seems likely interest rates do not go higher in the u.s., dollar does not get stronger. the currencies likely continue to rally in that kind of

environment, and that's good for equities. equity up 11% in the first quarter. that was the best return in five years. em small caps outperforming large caps in the end. all i say is rather than focus on next week or next month, think about what's happened in ten years. equity returned 2% a year for ten years when the s&p returned 7.5%. if you believe in reversions of the means, now is a good time to be looking at it particularly because valuations are especiallily attractive relative to the u.s. market. >> that get your attention? >> yes. u.s. market here, you know. >> i'm listening and saying to myself, you know what, there's my price. i agree with you 100%. i think that's where money is going, and, you know what, that's smart money. it's not the dumb money. there's dumb money out there. >> that was bought a couple weeks ago. >> very good. appreciate your thoughts and patience today. close, 34 minutes left, the dow

down 46 points right now. >> up next, another apple supplier is getting crushed. which company is taking the latest hit and why. >> also ahead, the ceo of the san francisco 49ers giving us his take on the impact of multiplatform viewing on nfl ratings coming up. e 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. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. it'that can make a worldces,. readof difference. expedia, everything in one place, so you can travel the world better.

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over licensing fees. seeking unspecified damages, but claimed apple held back the most advanced features of the chips to create an artificial party of iphone 7s, and they sued them three months ago for charging royalties for the technology they say qualcomm has nothing to do with. complicated. meantime, dialogue semiconductor is tumbling after an analyst warned apple is developing its own power management integrated circuits to partially replace the chips made by dialogue, and dialogue is down more than 14% right now. kelly? >> it's time for a cnbc news update with contessa. >> seven people confirmed dead from a parking garage that collapsed in mexico city. under construction. ten other workers injured when the structure collapsed overnight. the accident reportedly caused by mistakes in the building process. thousands of students

demonstrate in the streets of chile to protest a university reform bill. some protesters threw rocks. police responded with water cannons and tear gas. charles oakley in court stemming from a scuffle in february. he was arrested because he refused to leave the building. oakley was unrepenitent. >> next thing you know, dragged out of the garden. should have seen it. 20,000 people, million people on tv, so -- >> sources said at the time he was hassling the new owner, but says he did not do that and had nothing to do with it and nothing wrong, as you can see. that's the update at this hour. >> a tough player when he was the knicks, the enforcer. has not changed a bit.

other than the hair. thank you. see you later. >> 30 minutes left in the trading session, dow down 41 points, united ceo issuing a new apology and now calling for a review into united policies after the passenger removal mess sunday. coming up, former american airlines ceo telling how he would have handled the situation. >> san francisco 49er's ceo jed york is next the the only team in the bay area with the departure of the oakland raiders to vegas. stay with us. brian, i just need to know if 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... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah.

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welcome back. smilestone makers helping entrepreneurs grow company, the program's second graduating class is ringing the nasdaq closing bell remotely from san francisco along with jed wroyor the ceo of san francisco 49ers. >> joining us now from -- good to see ewe. >> great to be here, thanks for having me. >> occurred to us the 49ers are the only nfl team in california not to move. you know, you had the rams, the

chargers going to l.a., the raiders left for vegas. what's going on there? >> california's a tough place to build stadiums. we were at it for a long time, finally got it in santa clara thanks to levi stepping up and the fans in the area. we wanted to stay here. >> wish you were back in the old one, more karma support. >> success at candle stick. >> only been here three years. give us time. we'll get there. >> by the way, jim harbaugh on his second year. what happens if he comes back recruiting to the nfl? what do you think if he went elsewhere? >> jim's a great coach. obviously, interest in jim anywhere whether it's in college or other nfl teams, and i'm sure he is no short falls of offers from people. >> what do you think of this

decline in television ratings going down? 9% the regular season last year, and down 6% during the playoffs. first of all, what do you think of the decline? >> i mean, i think a lot of decline last year had to do with the presidential election and the cycle, but you're seeing that tv in general is declining. the nfl has been a staple and strong point. the only thing that's really held any market share, and i think you're going to continue to see that the nfl is the best viewing anywhere in sports or anywhere on tv. >> last year, twitter got to thursday night game, some of them this year, it's going to be amazon. this move to -- i mean, this test, this experiment with digital, do you think that will expand audiences or cannibalize it? >> i think the biggest thing is trying to reach a younger demographic, and that's what you really saw with twitter last year, and you'll continue to see that with amazon this year, and reaching the millennials, reaching people that don't watch

tv the same way i do or my parents' generation does, that next generation coming up, i think we want to make sure we continue to expand the reach of the nfl. >> and, by the way, a lot of people, you know, were familiar last year, the 4 the 9ers because of the colin kaepernick issue. refusing to stand for the national anthem. we understand, still, a free agent, has not landed a new team yet. what do you want the 49ers to be known for this season? >> the biggest thing is reestablishing our foundation. that's what they have been working on. building out what we hope is the beginning of a lot of success to come in the future. >> is that approved coming together a football team these days? >> i'm sorry, come again? >> is that a stats driven approach, a money ball type thing? >> i'm sorry, the connection's cutting out. >> is it a -- do you base it on statistics, you know, the way they did with the oakland a's

years ago with the ball situation? >> no. i mean, for us, it's making sure that we build out the right players, the right formula to continue to build something that we can be proud of. bill walsh always talked about the sports take care of itself, if you have the right processings it will take care of itself. we have to bring in the right people, put it in the right systems, and we have the right folks coaching our players issue an i think you'll see the results. >> last question, and as maybe this takes us back somewhat to the decline in ratings, but the pr issues involving concussions, and, you know, the young players and parents who do not want their children going into football because of the injuries involved in that. how much do you think that plays into it, and do you think the nfl's doing enough to try to protect players in that regard? >> i think a big thing is you're seeing a lot of young people not play sports as much as they did when i was growing up. so we have to do first and foremost, ensure kids are more

active. in terms of the concussions, the nfl is taking a lot of great steps whether it's in research, whether it's in adding new resources on and off the field to get our players, first and foremost understand concussions to be able to report concussions, and ensure we take care of the players if they have a concussion. we are continuing to make sure that the game is safer, and we're going to continue to do that, and i think we have to make sure that that happens all the way down to the youth levels, not just in football, but all sports because we want them to be active. we don't want kids, you know, sitting on their, you know, on the couch playing video games like that all the time. we have to get kids active. the n it'll is taking a big step in doing that. >> all right. jed, good to see you, thank you. >> thank you. >> looking forward to you ringing the closing bell. >> appreciate you having me on, thanks, guys. >> you bet. jed york. 20 minutes to go. dow down 25 points, big change in the recommendation for prostate cancer screenings now.

up next, looking at what they are, and the companies trying to treat that type of cancer as well. >> we're going to have more on the united airline's pr mess. overbookings and discuss what alternatives there is with former american ceo bob crandall coming up. clvp make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. various: (shouting) heigh! ho! ( ♪ ) it's off to work we go! woman: on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. and each job created by the energy industry supports two others in the community.

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>> some changing today in the recommendations for psa based screenings for prostate cancer in men. we are at cnbc global headquarters with details. >> reporter: hi, bill, concerning men 55-69. for them, u.s. preventative says it's a decision whether to get a psa test is one to consider with their doctor, update from five years ago when they recommended against screenings across the board. there's a controversial area. it checks for elevated levels of protein in the blood that can indicate prostate cancer, but the risk for false positives and overtreatment led the group to recommend against screenings, but says now patients need to weigh potential benefits and risks themselves along with the doctor. the group's words hold weight. one company affected is the

guidelines, not in draft form, is intuitive surgical. intuitive makes the surgical robot to perform the surgery. check out the graph showing growth in the u.s. you can see a big down tick down in 2012 when the earlier guidelines against screenings came out. other companies that may be affected, telling me diagnostic firms and genomic health see upticks down the line as they perform further tests after original other tests, and the other tests request diagnostics. not a huge reaction in the stocks, kelly? >> very quickly. if it was my understanding one test is one test, but if you get a number of tests over a number of years of succession of tests, it's a baseline, and it's when that next test shows an aberration that you got something there, right? isn't that how that works? >> yeah. a lot of people depend on changes in the test because they say there's objective level of psa, really not a good one, and what we hear from a lot of doctors today, this is not a

great test, and that's why there's so much controversy around it. >> all right, very good. thanks. >> appreciate it. 15 minutes to go. hope it does not create more confusion than clarity on the issue. >> i'm on the camp of more information, the better. >> i steer away from it all. down 37 points, s&p down seven, nasdaq down 26, russells up 7. >> wait until you're my age. >> the tech sector deem eight straight days of declines after being the big winner for the first quarter this year. debating the tech rally. over or not? coming up.

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the market showing imbalance to the sell side by $100 million. calling it a nonevent. we'll see. dow down 30 points after being down 145 earlier in the session. in fact, a tech sector hard hit today on pace for its longest

losing streak since november 3rd. it had a pretty good start to the year. it was up more than 12% as the sector in the first quarter, and also the second best performing sectors in the election. >> is this a good time to get in? joining us david trainer from new construct, and eric shipper from patriarch equities, two views here. david, you're a bull. why? >> i think technology isn't everything these days. what sector doesn't have technology? facebook, a media company, but it's a technology company. uber, a transportation company, but a technology company. technology's increasingly inventing everything we do. it's the most innovative and productive part of the society. it will continue to be the best sector to invest in in the long term. >> eric, the bear today, why? >> you know, i think some of the leaders like apple, for instance, are tremendously overvalued, and, i mean, it's a one product company.

there's not been much inmo van n innovation. there's others like snapwhich the, no competitive advantage. you have to be suicidal to invest, and i think it's a shame what happened to millennials who bought into the investment. i, again, the leaders in tech today driving it way overvalued, and so that's why i'm suggesting that. >> so, eric, what about facebook, for example? >> you know, i think that there's pockets, okay, like anything. there's pockets of investment. again, i feel it's overvalued. go and look at twitter. look, i'm a user. i love twitter. i got a big following. i like it as an application, but, certainly, as investing right now, it's not a good one. it's overvalued, and despite what many people say, go-pro, i mean, what do we have here? you look at the hardware's that's failing. it's a very small group of users

that actually want to continue to buy it. so, again, way overvalued. another big issue. >> okay. david, so kelly mentioned you like google. let me bring this up, not exactly a household name, but it's one you like in the tech sector which is nova measuring instruments. >> yeah. that's the thing. i agree with eric on a lot of fronts. there's plenty of highly overvalued tech stocks. snap is a great example of this sort of, you know, hard to make a straight faced argument why anyone should buy that. nova, on the other hand, one where you dig around, we specialize in technology, global analyst technology, going through footnotes, and there's undiscovered gems in the lower cap area, like nova measuring, grow revenues of double digit rates, and stock prices imply little to know future growth. there are pockets, pockets of expensive stocks, pockets of inexpensive stock. you have to be very careful

about what you choose. >> david, looking at the performance tech, it's up 11% this year, by far the best performer. what does that tell you? a sign that everybody understands you take it as a sign trying to get a divorce from reality. >> i think that there's overheated names. overall technology is going to continue to be a leader. i think you have to be creative sometimes about technology, not just think about where it is going, but where it's going. look what blackrock is doing an global analyst technology. that's going to transform services. >> eric, the last word, what about the companies you never hear from down in the trenches that are not the high profile snaps and others that maybe a little expensive right now? >> look, i'm a bear. i've been a bear. i think they're overvalued. i think there's a lot of, you know, hype, tremendous hype, and tremendous overvaluation driven by investment bankers, driven by

promotional, you know, players in the market place, and i think they need to be careful. it's not worth it. it's not worth getting hurt. certainly, we saw this with snap where, again, i think it was honestly a giant scam in my opinion, and i think that they were trying to get out, they don't have anything. reminds me of myspace in terms of it being over with. be careful, investors. don't just believe the hype. >> all right. i like it. very good. thank you, both, david and eric. >> thank you. >> appreciate it very much. >> thank you. the dow is down 24 points. coming back with the closing countdown in a moment. >> after the bell, changing the fashion of nearly every industry. did you know how to use big data in your investment strategies? we have a guest who does sharing it with you. you're watching cnbc first in business worldwide.

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indicator, and it was up big today, one of the biggest rallies seen in a while, back up above 15, almost up to 16 today, and before coming back just a a little bit. now that sets the tone, part of the selloff in equities today. the ten year yield, another indicator of the tensions building in this market, apparently, over the geopolitics. it looks like we'll set a new low in yield for the year at 230 on the ten year. price of gold up smartly today, best rally for gold in three weeks. now at 1274, and then there's the stock market, bob, which saw that selloff on the open this morning. they were down 145 points, at one time on the dow jones industrial average, and by the difference came in. >> right. two things happened. you mention the flight to safety, gold going up, bond yields down. there was a third flight to safety, the dollar-yen, 110, the yen has been getting more expensive against the dollar, and that's been hurting the japanese market, and that's considered a flight to safety

trade. there's the below 110, you saw the markets down when that happened earlier in the day, and then a second thing happened, oil rallied nicely. about, oh, 1130 or so in the morning, eastern time, and there you see the move up for oil, going positive, and that helped lift oil stocks to help lift the market. we had a lot of things sort of moving the markets aroundment the big question is why is there a flight to safety trade to begin with? you mentioned geopolitical tensions. that's short term. there's the issues with the trump agenda. the white house is backing off from the cranes they are going to try to get a tax cut through in august. that's widely talked about m i think that's an issue. the rising bond yields. we've been trying to understand how can it be so high yet we see numbers of the bond yields down indicating perhaps something else. this is why i'm telling you that the banks' ceos' commentary is critical. >> very. >> can you explain this. >> i agree, yeah.

>> you have been optimistic as well. explain the contradiction to us, the fate of the stock market may hang on what the bank ceo s tel us. >> thank you, bob. ringing the bell at the big board, the ceo of the 49ers at the nasdaq. looking forward to what bob says about the united airline's mess in the second hour of closing bell. see you tomorrow, kelly. >> thank you, bill. welcome to "closing bell," dow down 145 at the lows, look at this, we almost went positive on the bell there. closed down at about five points, watching that, of course, shaking out. 20653 for the dow. blue chips and united, worst performer in the dow transports today, down 40 points. s&p 500 down three on the bell there. the nasdaq a little bit weaker, the russell trying to hang on to

gains. united shares closing off the lows after the ceo officially apologized in the way the passenger was removed from the airplane over the weekend. coming up, former american ceo bob crandall and how he would have responded to the situation, again, a 1% drop in shares for united, down 4% in the session earlier this morning. joining me for the market action today is divine asset management and great to have you both with us. looking at, you know, we talked about markets meandering. the opener, the volatility index moves up. what's going on beneath the surface? >> in the middle of the day, showing you that traders are jockeying and seeing where they want to be for the earnings season. earnings is highly anticipated. there's bank stocks coming out, a lot of big names, and open on thursday, and we're looking at, you know, citij group, jpmorgan

chase, wells fargo reporting early that day. there's sectors that have not performed well, and you saw the vix climb today, trepidation happening during the day, and we're going to see that continue into earnings. >> closing out the week, and, bill, you're saying, look, earlier today, we talked about this, this some sense, everything that happened in north korea is unsettling, the markets taking it in stride, there's a bit of a flight to safety earlier, or if you look at the middle east and some of the tensions that further emerge there, gold was up, you know, yields down, et cetera. it kind of unwound itself this afternoon, but it left lasting damage on the level of interest rates. are you sanguine in the environment? >> what's going on for the last month that's important is the market went up quite a bit in the first two months of the year. so if you made 6, 7% in the

first quarter, it's not surprising people take money off the table because a lot of peop people, it was the whole year. the big thing at work here are the normal fears that create the normal corrections, and they might be making more from it than we should, probably. >> what would you say when people go, okay, fine, what do we get for stocks from here? you know, financials, there's talk of repealing dodd-frank, the president today barely budged, maybe because of the industry. corporate tax, potential jut comes in the administration feel they are in limbo. what's got you excited? >> well, first of all, at the height of the brexit and scare in february a year ago, it was down on $12. ment stock market lost at 25, and hardly any interruptions, going down to 23, and people are jumping out the window.

i think a lot of it is just fears. interest rates stayed down low, stocks are under valued at 2.3% on the treasury, and, by the way, we're excited about housing. we love it when everybody panics about the economy and the bank, and it takes the ten year treasury down because that means millennials get a great mortgage rate and we're happy. >> toll brothers up, having a good session today, danny, but that's all the move, a temporary one in treasuries, but maybe it's lasting not for the wrong reasons, not because people are concerned about growth or because of broader issues in the geopolitical environment. so, you know, in that case, interest rates are fine. >> yeah. the broader issues geopolitically hit that day, and so i think that we can't really anticipate what's going to happen and react to that properly, but i do think that, you know, some sectors like capital goods, for example, have done pretty much nothing over the course of the last year, so

that trump policy you'd think would really push that and some of the engineering companies, and it really happened, and it happened a lot because the issue of commodities not rising, like they've been lagging. we want to see commodities rising in anticipation, capital goods makers really start to hit the floor running. really late in the cycle, not late in the sickle, just confusion on where we are in the cycle because of interest rates. >> correlations -- bill, go ahead. strong economy. without -- the primary prop is inexpensive money, and the thing that will kill the bull market would be a booming economy and it'll take at least another 6-12

months it would cause a circumstance, and so it just looks like just a new environment. i agree with the last guest before we came on, a lot of expensive stocks out there that are void, and it's certainly looks like a chance next two, three years to outperform growth. >> all right. a goldy locks situation. the president is hosting the biggest ceos at the white house today. we have the highlights now. >> reporter: the so-called strategic forum met in february, the marching orders were to come back in a couple months once the white house had set up the staff, the cabinet, and they handled some of the top issues that the ceo and president were talking about that day. today's the follow-up meeting, and with cabinet secretaries under relative departments, budget, transportation, commerce, the like, more than 20

ceos gathered today, and the white house said the expectation the breakout session that tackled tax reform, infrastructure, and trade at a granular level. the president spoke and said they had a singular goal. >> with your hip and insight, we use the issue to drive job creation and reform government. the white house's ethos, the montra, but the ceos want to see specific domestic policies brought to bear. we spoke with steve schwartzman, chair of the committee, and he said it was slow going, but a commitment of the white house, and health care discussions are not really over, but that they will likely still have to happen. they will have to actually result in a law before tax reform happens. he said infrastructure is something that's seen early signs of support, both from democrats and republicans, and he thinks it could make a big impact, and did not describe the

mood in the room or conversation as one of economic nationalism, despite the fact that some of the presidents top advisers have been espousing protectionist policies like tariffs and the like. he acknowledged, though, significant political risk in the market. >> biggest risk to this generally is political risk. as i started as a younger person, that was not the issue. you're actually sitting around trying to game this stuff out and not someone like me, but it's the head of every company. >> reporter: heads had many large companies here at the white house today to figure out that question, kelly, trying to get certainty amid the political risk. >> bill, thinking of what a your picks are demographically than policy driven ones, but any in the latter bucket right now? >> i'm sorry, kelly, we do like the banks on the pullback.

we like the scare associated with health care. right? right now, everyone still thinks a bomb will be dropped on the pharmaceutical and biotech company and pharmacy managers. we like walgreens and express scripts, and things where you get great prices because of the intense fear out there right now. >> so something more to come out of washington, a bipartisan agreement to try to push back on drug prices, negotiate them, for example, would you leave the stocks in that case? >> no. see, the beauty of it is, none of these things ruins the most of the business, right? whenever bad things happen in an industry, you always ask the question, what is it doing to the mote? right now, it's almost impossible for anybody new to break in to these industries. so once it all settles down

everyone's going to want to live longer and live better through pharmaceutical and biotech products. no one doesn't want to live longer and better. >> quick last word. health care play as well? >> absolutely. >> living longer? >> i'm a fan of living longer. i own amgen as well. especially after brexit. it was on sale. we bought that and a couple other brexit stocks. i agree. >> good stuff. thank you, guys, for joining us. appreciate it. divine asset management. coming up, united ceo just releasing an apology last hour after physically dragging a passenger off the plane. former american airline ceo bob crandall weighs in and what the airline should do now. plus, active investors, why are they putting money in etfs? surprising details coming up. you're watching cnbc first in business worldwide. ♪ oh no. schwab, again?

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welcome back, over to susan for earnings alert. >> i want to show you moves and trackers flying after hours now, 5% on deepening volume, lifestyle retail chain, had

basically etf guidance for the first quarter below estimates, and revenues slightly below estimates as well. looks like lower comp store sales down to 2.2%, driven by weak sales and seat belt merchandise. the stock is lower. back to you. >> wow. they make good gym mats. heavy in any case, but thank you, susan. down 2.5%. united shares closer lower after the ceo apologized for the way the airline handled removing a passenger from the flight chicago to louisville. how common being bumped is from a flight, eric? >> thank you. of course, being physically dragged off the plane might be rare, but being denied boarding against your wishes happens every day. last year, 40,000 people involuntarily denied boarding on 12 major u.s. airlines according to the latest d.o.t. data. those are people who did not agree to take compensation, but still got kicked off. 40,000, out of 650 million people, or one out of every

16,000 try fliers. seems small, but there's plenty of people flying the industry, so over 100 people every day this happens to. compare that to the 400,000 people who voluntarily gave up their seats, 1200 people a day. united denied 3800 people from boarding their flight against their wirs out of 86 million passengers. fifth out of 12 airlines. who avoided it? ohio, delta, and virgin america, the worst was sky west, southwest, and expressjet. the percentage of people denied boarding has gone down, but the percentage has stayed the same. really improved in this way, reducing odds of forced bumping. when they check in online, the computer asked in advance for a bumping price, bump the cheapest people at their price without wasting time negotiating or

calling security. back to you, kelly. >> i had no idea. that's a great way to do it. surprised southwest is up there too in terms of bumping people. i am. typically pretty passenger friendly. the statement said, quote, like you, i can want to be disturbed by what's happening on the flight, and i deeply apologize to the customer forcibly removed, and all the customers aboard, no one should ever be mistreated this way. i want you to know we take full responsibility and work to make it right. that's what the ceo just said. was it too late? joining us by phone is bob crandall, a former ceo of american airlines. thank you so much for calling in and for your time. what would you have done in this situation if this happened to you while running american? >> caller: well, look, if this had happened, i would have done what oscar did. stand up to say, look, we made a mistake. this shouldn't have happened. it's never going to happen

again. i'm responsible. i'm sorry. that's what oscar just did. he did the exactly the right thing. >> well, you're chuckling, though. is it late on his part? >> caller: well, sure. that's why he should have said it yesterday. he knows that now. fact of the matter, it was a terrible mistake. somebody made a big time mistake. shouldn't have done it. they know they shouldn't have done it. the chief executive knows they should have done it, and i'm sure they thought everyone had a lesson, hopefully, everyone now moves on. united's full of very decent people as all airlines are. the statistics that your guest filled in before we started to talk, very huge, very, very big majority of those who do not get on get off voluntarily. they volunteer. the airlines have come up with a whole variety of ways to effectively auction people off,

and i think the way that delta approaches it, which is a general mathematical approach that a number of carriers are fooling with is a very good approach because it reduces still further the number of involuntary. we want to get it down to zero, and hopefully we'll get close to that. >> could this have happened to any airline? >> caller: well, it could happen to anybody at any airline who can make a mistake, so if somebody at american or southwest or delta or any other carrier had decided that they were going to physically take people off app airplane, it could have happened anywhere. nobody should ever make such a decision. it was a clearly big time mistake, and hopefully,le folks at united and most importantly the customers of the airline industry ought to know that's not the way the airlines want to be behave. it's not the way they generally behave, and that's the last time

i suspect you'll ever see nip kicked off the airplane. >> one or two with the videos, we heard the accounts from other people in the newspaper would have been one thing, but seeing what happened and having everybody see it makes it that much worse. i don't think i would have believed it if i had not seen it with my own eyes, frankly. >> caller: i don't think so either, kelly. one of the advantages of modern technology is it is getting harder for the sinner to hide. i mean, there's likely to be a picture, so you're going to have to acknowledge what you did whatever it was, and you're going to have to be dealing with the consequences after having done it. >> after the statement, a day late perhaps, the video causing issues in china, an important market for them, what else can be done? >> caller: i'm not sure anything. i think oscar can continue to say at every available forum, look, we made a mistake.

we've talked to all of our people about proper process and procedure, we're never going to make that mistake again, and we're deeply sorry it happened, and i think in the not too distant future people move on. >> it comes a couple weeks after the weird spandex issue where there were united employees not dressed properly, and also in this case, one of the things that got people upset was the sense that part of the reason people were taken offer was someone on united employees or something like that could get on the plane. >> caller: well, i think -- i think that's right, kelly. i do think you need to keep in mind, my guess is, i don't know this, but i'm guessing. the people that were trying to get on the airplane were flight crew. they were needed at the next station down the line in order to operate another united airplane. it wasn't that they were trying to get people off to accommodate employees. they had a business problem, and

the business problem is that they needed a crew at the next station down the line, and, of course, if that's the business problem, that's fine, that's a perfectly legitimate business problem, but the way you get people off is you raise the price -- >> yeah. >> caller: to get people to voluntarily give up their seats. you don't go on and drag somebody off, and i think everybody in the western world now knows that. >> yeah. they know tickets is just an option for a seat, maybe it's a l lotto ticket, who knows. >> caller: on behalf of the industry, it's more than that. it's a guarantee to take you where you want to go and get you there safely. >> is it a guarantee? i'm not sure anymore. >> caller: well, i think you'll find that almost everybody in the airline business would feel very comfortable saying we're going to get you there and get you there safely, we promise. >> that's the most important part. bob, thank you for joining us. >> caller: my pleasure. >> bob crandall former ceo of american airlines. march jobs report weaker than

expected. what was behind the short fall? whether the job market in general pique? plus, mercedes about to unveil a new suv and phil lebeau has a first look at it. hey, kelly, springtime in new york. what does that mean? new york auto show and, oh, a first peek at a new mercedes. this is just the taste of it. we'll show you all the new coop and hear from the head of mercedes benz usa when closing bell returns. time's up, insufficient prenatal care. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. e*trade's powerful trading tools, give you access to in-depth analysis, and a team of experienced traders

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welcome back, mothercedes s to release a new suv. phil has a peek at it, phil? >> hi kelly, head of mercedes benz usa. let's not tease people. show them the coupe. it's a crossover. >> great to be here. if you unveil the car, we are proud of the newest addition to our suv family, actually, with the amt, high performance engine. that's a glc coop 63s. it's a five turbo 8 cylinder engine, get the bigles, and it's warm when you get home. >> amg, top of the end of the line in terms of what you look for, the gl dr. any slowdown in demand for the suv or crossover? >> not for us.

we wish we had more suvs now, especially the glcsuv, and this sports model, coupe sports model, we wish we had more. unfortunately, we can't. they are already working overtime, and we are incredibly successful with it. >> a lot of hand ringing in the united states where the auto market is right now. are we overanalyzing the plateau in sales, fearing the drop off here? >> i think so. i mean, i like very much the term, coining the industry plateauing. we don't see a big dropoff or anything like that this year or next year. last february at 17.55 million unites. might be 17.4, still 99% of the all-time high. pretty good industry. >> this is going to be built in germany, correct? >> built in germany, yes. >> people are talking about manufacturing in the united states. >> yes. >> you guys manufacture, what, a little over 340,000 vehicles k correct? >> we manufacture about 310,000.

>> 310,000. >> we sold 340 thousands, so 90% of what we sell here is manufactured. >> is there enough demand you can see at some point, not committing now, but another manufacturing plant in the united states? >> well, we're always analyzing what the situation is, how to best optimize it, and then kind of decide, and these are not decisions we make light heartedly or quickly because, obviously, once you build a facto factory, it has to run for 10-20 years, basically forever, so we are always watching and readjusting. possible, but no decisions made or expect any decision in the near future. >> the decision you made to pull advertising from bill o'reilly's show on fox. you were among the first to do it. is that any indication that, perhaps, you want to pull all advertising from fox news or from now, or saying, it's just o'reilly? >> for now, just o'reilly's.

we are committed to nondiscriminatory workplace, and unfortunately we had facts come to the light that were rather disturbing, so we decided to move advertising from the show. simply because of that. >> any plans to return? zb. >> we have to see. we monitor the situation. for the current time, no. >> the ceo of mother say dee benz usa, guys, u.s. auto show is about latest in luxury and suvs. you get it here with the new coupe. >> quickly, phil, i got to point this out, this car has a matte finish. that's cool? no shiny? >> i'll ask him. is matte finish, how hot is it right now? >> this color, i never liked matte finish myself, quickly, but, you know, i just love it now. in the sun, it looks great. so this model with the silver

matte that's pretty much sold out right now. >> really? >> you can't get it. difficult to get. >> even though you do not like it per se? >> i did not originally, but this one i fell in love with. >> there you go, kelly. >> good morning, thank you very much. time for a cnbc news update. >> kelly, kitchen appliances too, matte finish everywhere. it's the new black. happening now at a daily briefing, sean spicer in hot water. he said hitler did not use chemical weapons. extermination of jews in world war i, and then he tried to clarify remarks several times. >> he didn't use chemical weapons in world war ii. you had hitler who did not even sink to using chemical weapons. >> attorney general jeff sessions announced if people cross the boarder illegally,

they risk prosecution urn the full force of the law speaking from a border point of entry in arizona. in germany, a player for german soccer team was injured following several explosions near the team bus. the game was called off. we don't know what caused explosions. that's the cnbc news update at this hour. >> kitchen appliances too? this -- i thought it was just cars. >> you need to know if you're going to remodel. matte finish. no shiny stainless steel. >> go long the company that repaints everything matte. cars, kitchen appliances. >> right. >> face paint. >> stvery good to know. thank you very much. job openings hitting seven month highs. and coming up, live to the u.s. mexico border to, plain why chew technology could have a role to play in president trump's border wall. stay tuned.

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welcome back, a look how we finished today, dow recovered from a 145 point drop earlier in the session, closing by seven points there. 20651. s&p down three. the nasdaq down 14.

the russell hanging on to a small gain today about nine points, 1376 making it the only index closing in the green. small businesses falling in march after reaching the highest level in 2004 in january post-election. this coming slip and job openings in the u.s. at a seven month high. joining us for more on the economy and if job growth is up to speed, the founder partner of beacon kmieconomics, welcome, b of you, chris, you're pretty optimistic about what happened in the labor market, correct? no slowdown despite the weak jobs report? >> no, absolutely not. look, the weak number in march on top of two numbers in previous months. overall, we averaged less than 200,000 jobs, which is basically what we did all of last year. of course, the jolt number came out today, so job openings are very, very strong. the problem in the labor markets

today is not a lack of labor demand, but labor supply is so small that businesses are having a tougher time finding the right perp to put into a slot. overall, this is good news for the u.s. economy, and that kind of labor demand means rising incomes and that's another thing seen over the course of the last couple years. >> you're bearish on the fundamental strength of the u.s. economy. >> sure. i think the job creation will continue, but the economist in the world think it's significant in terms of the growth of the economy. job creations are lagging indicator, and stock market losing indicator, down the last six weeks, gone nowhere in six months, down for six weeks. other indications, trends tighten into weakness. tighten for the wrong reasons. normally tightening follows the economy as a sign of strength. not this time. making up for the fact in 2010.

the job openings are concerned, i wouldn't say it's, you know, a lack of supply. labor anticipation is close to the 40 year low. plenty of people around, but not the right skills. infir >> it's not a leading indicator. the stock market did not tumble in the great recession until august three quarters into the downturn. saying it's the leading indicator is just not true at all. forward bond anticipation rate, we knew it'd occur in 1985. it's a demographic shift, not an economic one. to carve recession, you need a reason. where's the imbalance? the shock? u.s. economy is not on fire right now. we're in a 2.5% growth range. really short of some major change in political policy coming out of washington, d.c., there's absolutely no reason for the u.s. economy to sink in recession.

>> difference between financial panic and business cycle. this is a business cycle over a long period of time, 40 business cycles, there's a heads up about six months in advance with the stock market. in terms of weakness -- >> that's not true at all. >> it is true. over a long period of time. the other thing is as far as the 2.5%, that's gdp shy about .6 of 1%, almost negative. >> that has been the missing piece of all of this, even as there's consistently almost strangely consistent job growth for years now. the gdp numbers all over the place and continues to be disappointing. >> well, absolutely, but, look, the first quarter is weak for every first quarter for the last six, seven years. something about the seasonal adjustment process not working, the bea. ultimately, don't look at the gdp number, leading indicators, personal income doing fine, personal production picks up, imports stable, commodities moving back. housing moving forward. all the underlying drivers of

the demand in the u.s. economy are pointing forward, and, again, but for some shock to the system, there's no reason whatsoever to have a recession any time in the near future. >> jim, a question for you as well, which i'm wondering, when was the last time you were a bull on the u.s. economy? >> probably 2004 or 2005. we're in a depression. we're not in -- we're head -- recession in a depression. heading for recession in a depression. we've been in depression since 2007. 2% growth, that's persistent growth below potential. potential is 3.5%. we're 2%. suppressed growth. never making it back. >> all right. leave it there, gentleman. strong disagreement there. that what makes a market and an economy. appreciate you both for joining us. >> pleasure. hedge fund managers take an active investor strategy, but new data shows surprising shift

where they put the money towards. that's next. investors investing based on big data. could have been a big hit for funds, but some managers run into big problems. how one data analyst hopes to refine the process. watching cnbc, first in business worldwide.

welcome back, not just retail investors passive. new data reveals hedge fund managers use strategies too. leslie picker has more.

>> kelly, it seems counter intuitive, doesn't it? big backers of passive securities that are stealing their investors. it turns out that hedge funds has $50 billion invested in exchange traded funds. it's a number that's been increasing over time. a decade ago, etfs represented 1.6% of hedge fund assets at the end of 2016. it was twice that proportion according to research firms. you may be surprised to learn that funds like bridgewater and others upwards of 70% of their respected equity portfolios invest ed in etfs. bridgewater etf helps the firm grow best, and others use them to counterblansz shorts. they frequently use efts as hedges for long positions, but the details are not disclosed in quarterly filings. at least a small proportion of their e -- long etfs in the portfolios though. securities are extremely liquid

and can be purchased quickly in the event of redemption, and redemption sweeps are coming. investors took out more than $100 billion from hedge funds last year. that's the most since the financial crisis, and where does the money go? funds, kelly. >> indeed. like an endless move, one into the other, and they're all in the other, leslie, thank you very much. leslie picker there, along as investing in hedge funds, they turned to big data. however, the shift has challenges. joining us now with more, ceo here at post nine, welcome. >> thanks for having me. >> big data, a buzz word thrown around so much. talking about strategy, is there where the information and quantitative strategy meet? is this what's set into these algorithms that then execute trades? how common is it now for these to dominate the way people trade today? >> it's becoming increasingly more common for funds to rely on data to do this.

it's an age of surveillance. talk about how consumers are losing privacy, but it's not just them increasingly companies are losing their privacy as well in a space with big data allowing us to do, get inside to the company performance that beforehand was not possible. >> classic one that most of us are familiar with are send up a satellite and count the cars in a mall parking lot. that's 20 years old to the industry. what's cutting edge now? >> sure. a lot of other retail side, people are looking at credit card data, understanding what consumers are purchasing, looking at location data, tracking cell phones, and looking at the united example, interested in tra travel, there's advance bookings of air fares to see what's inside the last couple days, you can get data on. >> how expensive is the data? a big pocket of investors pay huge for any edge. >> you know, so depends on the

data set. one of the realities is they look for value whether it's in investments or people or data sets, and so they are not -- they are frugal with the spending. there's -- affects a couple million dollars or more than one for a couple thousand dollars. >> a lot is in the great lengthy piece in a fund over the past weekend or maybe the one before, but they talked about how they have, like, a million edges so to speak, a million different -- it's probably more than that now, taking all the information, but coming up with a way to combine it effectively to predict how to trade it. that's what's happening inside most of the funds and where real application of human brain comes? >> for sure. that's what's happening a lot on the quantitative side, and you're right. the reality is that you want to combine a bunch of these data sets, but like you, you take all bad data on data stoppage that tastes good, but in the long

term, not good for you. >> garbage in, garbage out. >> exactly. they are careful to understand exactly why certain causes are leading to different investment outcomes, and so you pick data that's tafrgt etargeted and spe time drilling into the insights. >> startups like credit karma, we file the tax return for free, but take the data on the back end and sell it to the kinds of people you're talking about. at what point do consumers say, i don't want this out there, or always enticed by free? >> that's a great question. so far we are seeing a lot more of these companies getting access to data on providing it. reality is people love to sort of vilify hedge funds, using the data, but at the same time, you have the facebooks of the world with so much more consumer data about you and doing so many more personal things with it, and people are, okay, giving that up. from our perspective, i don't

care about individual consumers, but trends. that's where the privacy is very, very important. >> next couple years, what's the most important thing for data collection? what is next out there on the horizon? >> well, i think a big part is around developing people with a skill set to that requires this, follow these people to gets access to their data, and so having, quite frankly, your skill set, have a conversation with anyone and convince them this is a good thing for business as well. it's going to be extremely important. a lot of skill sets are commodities, in the market, and as soon as you see the data, a lot of hedge funds lose value. >> exactly. >> the real output we have in identifying data sets is that no one else thought of it before. >> glad there's a fallback career. if this doesn't work out. thank you so much. a lot of issues, please come back to post us on what's happening there.

>> thank you. forget about cement slabs. technology the most effective tool. an upclose look at this next. coming up on "fast mun," the trump rally stalling. a strategist says it's time to usher in the era of trump trade 2.0. nicole tells us what sectors are the next rally at the top of the hour. at fidelity, trades are now just $4.95. 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.

. welcome back. we have a lot on oil invent errors this afternoon. susan lee what are the numbers? >> we have crude oil stocks falling 1.3 million barrels per week. it's a game in supplies. it looks like u.s. crude is hovering to the five-week highs. back to you. >> thank you, susan. attorney general jeff sessions

touring a u.s.-mexico border in arizona today, sessions taking a hard stance against illegal immigration. >> under the president's leadership and guided by his executive order, we will secure this border and bring the full weight of both the immigration court and the federal enforcement and prosecutors to combat this attack on our national security and our sovereignty. >> and the border patrol could have some help secure tack border as president trump has promised to bailed wall between the u.s. and mexico. it may not be made of cement. susan is in arizona with more on that story. >> reporter: hey, kelly, sexes also got and up-close look at how complicated president trump's vision for a new law may be. take the border just here in nogales, arizona, can you see the wall right into mexico.

right besides me here, it is pure concrete. down the road thisway, it is something opened to a full post of vulnerability. these physical barriers, what they can't do, technology is making up for. take two companies currently working with the government to pervade the borders using high-tech technology, they are clear and elbit systems. clear is working on infrared sensor technology able to identify trucks and humans from miles away and then alert border patrol agents. there are also companies submitting proposals for the administration's vision of a new wall with some high-tech solutions, for example, one company wants to invent smart sensors on the physical wall. another company wants to use drones for 3d mapping around the

border. they say it's not enough, but in some cases, it may prove more effective and less costly. >> maybe more effective. but this stuff looks like it will cost a pretty penny too, deidre. >> reporter: when you think of how much amounts to ship a physical wall and what companies, it is likely you will get manufacturers close to the border. possibly mexican manufacturers, this would be like paying them for the wall. tech knowledge as it progresses gets cheaper and cheaper. already you seen with drones, that can be a much less talked about -- >> then having both, it costs double. as long as it's secure, i guess. >> reporter: thank you. film and tv writers could be on the verge of a strike, plus the latest developments and the industry impacts when we come back. i've found a permanent escape from monotony.

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at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. >> welcome back. yet more breaking news on the united airlines controversy. >> reporter: we have a statement on behalf of the united airlines about the person forcibly removed from that flight t. family wants the world to know

they are very appreciative of the outpouring of prayers, concerned and support that they have received. currently they focus only on the medical cares and treatment. they say a chicago attorney that represents the family. they say until his release from the hospital the family is now asking for privacy and will not be making any statements to the media, according to both of his attorneys. back to you. >> yeah, susan, this comes after many details have been reported, you know, a lot of them in very apr preliminary way in this life and what he may have been involved in the past. this statement you are bringing us is not from the man, himself. >> reporter: no. >> i guess this is a lawyer for his whole family? >> on behalf of the whole family. this is a law firm representing the family. they are asking for privacy. until he gets better and is out of the hospital.

>> thank you, susan lee, with the latest there on the united issue. film and tv writers are back at the bargaining table with the release of new fall schedules and julia boorstin joins us. what could a writer's strike mean for hollywood? >> reporter: right now, the writer's guild are currently in negotiations. the risk of the strike starting on may 2nd seems to be growing. the wga is expected to take strike authorizations from its members. the gild demands are three times the size the studios like to make. it's a $350 million in gap and pay over three years. the wga saying in a letter to media buyers the average pay of writers and producers work income television declined 23% in the last two years alone. hollywood studios are worrying how it could hurt ratings and drive court cutting. >> the economic impact of the

strike in 2007-'08 was something like $2.5 billion over the course of a three-month strike. it helped trigger a transformation in the way certain aspects of the business are done. it led to more reality tv, for example. >> the writers guild appealed to at&t shareholders, warning a strike could undermine the value of time warner, saying it could have the potential to materially affect time warner's revenue. we will see if negotiations scheduled through friday yields progress or whether they bring hollywood closer to a work stoppage. kelly. >> it's so interesting how reality stv stepped up in the past. does that mean the next youtube or snapchat could be in the making here? >> it's interesting. we have to remember the writers guild rules also applies to writing for shows on netflix, on amazon and those are very costly shows that really rely on those writers. but what could happen is that netflix and amazon and huh will

you have a huge library of content. if there is a new content on tv, we'll people could say, why am i watching on cable? >> the library wins. i love. that julia, thank you so much. our julia boorstin. >> that does it for "closing bell. kwats "fast money" begins right now. >> "fast money" starts right now, live from the nasdaq market site overlooking new york city's time's square. i'm melissa lee. tonight on "fast," a top strategist says the market has just entered a new phase he is calling trump trade 2.o. what does that mean and who will be the winners? he'll be here to explain. the united ceo says the words everyone has been waiting to hear, "i'm sorry." both social media here and in china in an uproar. we'll tell you why it may be too late for apologies and the stocks. later on, oil slid o