the moab bomb, known as the mother of all bombs, and that gave a little chill into the market. >> yep. thank you for watching "power lunch," have a great week. >> "closing bell" starts right now. >> have a happy easter, everybody, and a good, good friday. hi, everybody, i'm kelly evidence evens. who are you? >> andrew ross sorkin in for the great bill griffeths for the day. we have the latest developments on the greatest of all bombs in a bit. >> a mixed bag on wall street. citi and jpmorgan, they blew the roof off, but it was a revenue miss at wells fargo. the company's cfo talks about the pin points and first on cnbc interview with john shrewsberry

and asking about cutting stake in the bank. united airlines, the story that keeps on giving or doesn't end for them issuing a new statement after a lawyer of the doctor grabbed off the flight, saying his client suffered a concussion. we have tape of that and talk about how this could play out for united with an aviation. >> yeah. shares weaker, but sideways the overall market. a story catching wall street and everyone's attention today. the u.s. dropped the mother of all bombs in afghanistan. we have the full report. >> reporter: kelly, we got comments moments ago when the president was addressing first responders who responded to the collapse of the i-85 bridge, but he answered a question about afghanistan, and i want to share that answer with you. >> we have the greatest military in the world, and they done their job as usual. we gave them toe tar authorization. that's what they are doing and

why they are successful lately. look what happened over the last eight weeks and compare that to really what's happened over the last eight years, you'll see there's a tremendous difference. tremendous difference. we have incredible leaders in the military and incredible military, and we are very proud of them. this was another very, very successful mission. thank you very much. i don't know if it sends a message, doesn't make a difference or not. north korea's a problem. the problem will be taken care of. information provided by the department of defense, the bomb dropped by a u.s. aircraft, u.s. forces in afghanistan dropped at 7:32 p.m. local time in northeast afghanistan just about two hours from kabul. ha isis tunnel complex called a stronghold for isis in afghanistan and pakistan, and said that offensive operations

in that region will continue. now, the pentagon was authorized in early 2016 to pursue military activity in the region, but so far the mother of all bombs, a nickname for the air blast, which is the largest bomb in the u.s. arsenal, more than 21,000 pounds. this is the first time it's ever been used. sean spicer, the press secretary, called it a large, power. accurate weapon. interesting to see this happen one week after the air strikes in syria. secretary of state rex tillerson cautioned against doing the policy of the united states in the middle east as one that is changing, but it does appear to have been an especially active week, guys, for the u.s. military in the middle east. >> and the first time that bomb's been used now. kayla, thank you. retired army colonel jay docobs

a take on the bomb and isis. in the meantime, other big focus is bank earnings, the hits and misses, what else? >> reacting positively to earnings, however, there were hidden issues for wells fargo in particular. revenues only a little light, but mix was more to higher expensed including related to the sales scandal. well above argument 59%, and here's the ceo, tim sloan. >> you'll see an increase in our expenses so without that first quarter seasonality, we would have been operating outside the range that we talked about historically between 55 and 59%. as we said operating from that perspective is not acceptable. >> but it's a struggle to hit the 55%-59% target this year. corporate loan growth was soft for all of the banks, it was

offset for jpmorgan and citi with stronger corporate bond issues and dtm as well as broader investment strength. here's citi's ceo, michael corbat. >> had a start last year, extraordinary march this year. if you look at the pipeline of banking, banking deals, i'd say all the pieces we expected with that momentum from last year came to fruition, and i'd say the second quarter, you know, continues to feel like it has positive momentum. >> trading was also strong, especially in that sector. credit cards benign, something they watched closely, the highest charge, down through more bid as opposed to work policy. wells fargo the lag in the market, but all red.

kelly? >> yeah. will, thank you. the shares down 2.5%. hear more from the cfo in a moment, but let's get to the closing bell exchange today, shall we? >> what happened to push us lower? >> right. coming into today is quite interesting. we had a handful of ipos on the street today and everybody thought that would have been the apex of the day, of the excitement that we were going to see because bond market closed early, and usually things very much quiet down as the day progress progresses, but seeing from the chart after 110:00, we got the headlines about the bombing in afghanistan. at that point, no overall panic or fear in the market rs but it was more of, it seemed like all the participants evaporated from the market, and we saw the market trickle lower. what's interesting is we have a

three-day weekend, a long time to really think about this and the calendar continues next week, earnings season continues progress, economic data too, but now this is a clear message from washington we'll continue to see headlines like this and how is this going to affect the overall markets? >> how is it going to overall affect the market? feel like the consideration a little bit, but not too much. >> it's quite amazing. it seems like over time our entire market has become so desensitized to news like this. you remember back 15 years ago, news like this would have probably taken the market down a couple percentage points. ? exactly. >> that's interesting. it says a lot how far we've come psychological psychologically. it's not a big deal to us as far as what our overall expectation is for the market. we just think we're in a trading

range, and we're going to stay there for the next few months, and -- >> were we wrong 15 years ago? wrong now? >> well, i think neither one is wrong, but it's the world chast changed, unfortunately, andrew, and we have to adjust psychologically this profession that this is the world we live in. you see it with the london part limit issue, the market barely moved, we have this issue now, barely a blip on the market downside. >> andrew, we've seen over six months the market takes a little bit of a breather, a little bit of a pullback, and then comets to move forward. you know, that's right, we have become very desensitized to this, which i think is somewhat scary because at some point, if a headline like this today doesn't rattle the market, especially when there's light

volume, i don't know what is. >> last night, by the way. the ten year yield was below 2.25%. that breaches levels from 2015, then this happened, and, by the way, the equity market is taking it in stride, feels like it's isolated incidents, you know, and perhaps that's where the focus needs to be on whether they are or not. >> so hard to look at various issues and pin what's going on. just an example, the mother of all bombs. believe me, when that news hit, all e-mails were up, everybody wanted to talk about it. the yields, hours before our time zone, down to 222 in ten. i'm not saying none of that matters, but it's very difficult to assume that there's an effect. a, huch and how long lasting, what's tiny? this is a type of weekend event where traders are trying to

derich portfolios, the ten year is vulnerable, and i'm not saying the close -- well, under this important yield of 227 down to 225 for round numbers isn't important. it's more important if we still look this way when we come back and get more traders looking at it but i think the move in treasuries puts gravity in the equity complex. >> you have places in the market, some of the banks, airlines here, tell us what you would pick. >> absolutely. i think highlights what jpmorgan announced today with earnings. they had a tremendous quarter and will be the ongoing story for the sector, and, you know, 9% year over year loan growth is very substantial and tells me that aside from higher trading revenues, but 9% is big for the

bank of this size. they are loosening the pursestrings because of washington and deregulation, et cetera. we think this is going to be a place to put money for a while and think that airlines, well, relative to what just happened with united, we continue to believe that domestically focused airlines are a tremendous value and they announced they are pushing into the asian market and they want to move eastward into east part of the coast of the u.s. there's m&a activity that could go on. we're excited going into the earnings season, and going into next week overall there's going to be really good insights into how strong earnings are in the fundamental value that is stilg there in the market once it's

shown in this quarter's earnings. >> going to pick up into next week. thank you for joining us. have a wonderful weekend. >> thank you. >> you too. >> 50 minutes to go, dow down 53 points now. nasdaq's down 12. russell's down 9.5 today. >> wells fargo reverses the s w slowdown in banking business? that's the question to the cfo next. ahead -- >> concussion and a broken nose, the attorney for the united airline's passenger dragged off a full flight says a lawsuit is probably on the way. the latest development, you're watching cnbc first in business worldwide. think again. this is the new new york. we are building new airports all across the state.

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[ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] welcome back, shares of wells down 2.9% today. the company posted flat earnings in 2017, but the lower mortgage banking revenue weighed down the stock today. >> first cnbc interview joined by john strewsberry, welcome,

john. >> hi, thanks for having me. >> let's begin with the impact in the quarter specifically from seams practice. what did you experience in overall growth numbers, sales numbers, account numbers, and so forth. >> sure. so the big picture is that we posted 5.5 billion for the net quarter, the 18th quarter above $5 billion. a very solid number overall. we did it with lone growth down a little, about 1%. we got some runoff portfolios and new loan growth is tepid overall in the industry, and we're experiencing that too. in general, the expenses were higher because of the sales practices situation. a lot of outside parties invited in to do work, make investigations, and give recommendations how to improve ourselves, and that weight on things to that tune, but there

was net income, roe, and 11.5% range at the top of the pack and industry leading roa as well for langer banks. the overall performance is very solid. >> when it -- relosing monthly numbers as well for accounts and deposits and things like that, has there been inflexions yet, me men tum seen there and where it's felt in revenue and lone growth going forward? >> we share each month activity in the branchs, referrals forring the openings, referrals for credit kartds and deposit numbers. deposits, a measure of what's happening, we're at an all-time high and consumer deposits, 1.3 trillion overall. that rebounded nicely and never ever really ebbed. in terms of the daily opening

accounts, that does seem to have inflected. we'll know more with the passage of time, but seems to reason the new method of doing business with the branch, so they are the rules of the road, customer service oriented, and we've changed the paradigm from how things were designed in the past. we also advertised more directly contributing as well. too early to declare victory, but the direction looks good. >> can you map out, so many investors and analysts are trying to understand long term what kind of regulatory compliance costs are really going to be there. i know you talked about remaining, but can you give us a better sense? >> yeah, so, listen, i think that the range that we project, and i saw the graphic up earlier. in the investor day, there's a ratio of 59% of revenue.

i think in a fully developed mature modern compliance environment including our own special circumstances as well as just the world that we're living in, we can operate within that range. www.a doubt. today, for the foreseeable future, these elevated expenses of third parties and others we're paying for, extra pe and personnel in the same area, but i don't think that that in particular meaningful head winds is a big bang to be a and run a very client operation once things matured. that's a year to two years from now. >> two years down the road, the issue is what's dodd-frank looking like? therefore, what compliance costs look like. are you taking that into consideration? >> no, i'm not. i imagine for the largest banks the regulatory regime we look under looks substantially the

same in the future, whether it's capital stress testing, liquidity stress testing, resolution planning, et cetera. i don't think the banks operate under a lighter regulatory touch, which is fine. we can pay for it. we did deliver it. to the extent there's relief it'll probably apply to smaller and medium sized banks with a much tougher time meeting the burden. >> i wanted to ask about what's happening in the loan portfolio. focusing across the whole industry, business loans down precipitously since november. what are you directly experiencing that might help to explain that? >> not described as precipitously. since the election, the business customers and small, medium, large, and global, have been certainly enthusiastically waiting for the implementation of policies designed to be pro-growth, and that gets them to conduct more activity, to

expand, to buy extra machines, build an extra plant, et cetera. folks are waiting for that sign, the pro-growth policies that are going to happen before they pull the trigger on borrowing money to do that. i'd say commercial lone growth is more sideways over that period of time. i think that the sentiment is actually very high and people are enthusiastically looking forward to something breaking and general business regulation tax policy and other pro-growth items. they are waiting and seeing. >> what about the consumer where amount of credit continues to grow, taken as a sign in health, but in auto, for example, there's concern about quality there. you guys tightened the standards. how do you describe the consumer portfolio broadly speaking? >> that's right. consumers for us is mortgage, auto, and credit card. in mortgage, performance has never been betterment one of the stats on the call this morning, we had one basis appointment of loss in the mortgage portfolio.

we're the largest mortgage legender in the land. coming from the winter, less home buying, coming through a spike in rates and maybe the thought rates would be higher for longer, although they reversed course since then, that slowed things down in the first quarter, but, you know, the mortgage market will be there. people buying homes, coming into the home buying season, and people are -- there's more of that going on than a year ago. jobs are stronger, et cetera. in autos, there was a lot of competition. people are providing credit, but used car prices have gotten weaker, and so we tightened the credit box somewhat, and we're happy with where we originated now. it's at a lower level in terms of overall dollars, but we're going to be happier with the performance of that portfolio overtime. and in credit cards, say certainly fierce competition for putting cards in people's wallets, so we're more credit

extended in some populations of people that's harder to pay back. fees picked up a little bit. including ours. it's expected performance. it's priced for that risk. it's probably a little bit worse in loss than a quarter ago or a year ago. >> all right. john, thank you for joining us. appreciate you're explaining several facets of the business. >> thank you. >> the cfo of wells fargo, shares down 3% today after earnings. >> refresh me on the flow. they love us that many? that's what the experience is? >> it's before a four-day weekend. >> oh, okay. >> well, before the bell, let's tell you now, the dow, 89 points down. s&p down -- ten points for now. >> nasdaq, russell, everybody weaker today, united with a new statement in the wake of the

passage removal incident catching everybody's attention. that's next. we got retired army colonel jack jacobs excellecommenting o bomb and why it was used now. dom, you're gonna betray your brothers

and shatter your family. i'm taking you down toretto. come and get it. that's not good. oh damn! this is crazy! get us out of here! why are you always yelling? rated pg-13. experience it in imax. welcome back. united ed issued another state. phil lebeau with the latest now. phil? >> kelly, the attorney talked

for an hour, and in the course of the hour, he made it very clear they are gearing up for a lawsuit against united airlines. dr. david dao, his attorney, two attorneys, one spoke for the most part during the press conference this afternoon, saying that they do plan to sue united airlines. they got two years in order to file that lawsuit so while they are moving forward, they have not set a date for when they file suit. dr. dao suffered a broken nose, concussion, just released from the hospital last night. here's the attorney talking about how horrific they view this situation. >> here's the law. real simple. if you're going to eject a passenger under no circumstances can it be done with unreasonable force or violence. that's the law. >> during that press conference, he said that the family of dr.

dao never heard from united airlines contrary to what oscar munoz said yesterday, but united responded today, yes, they tried to reach out to dr. dao's family, saying we continue to express our sincerest apology to dr. dao and remain steadfast in the commitment to make it right. this horrible situation provided a harsh learning experience from which we will take immediate and corrective action. shares of united, again, united emphatic in, yes, we tried to reach dr. dao after this, but we were unable to, contrary to what the attorney for the dao family is saying. guys, there's a hearing early next week to go over the motion that was file d yesterday askin they preserve documents, recorders, just a start of what could be a legal process over the next couple months. >> phil, talking about the legal

process, we had so many people on the air over the past couple days who say, nip this in the bud. rather than the lawsuit to come to you, shouldn't united be on the phone to offer outrageous amounts of money to end this? >> yes. i have not talked to anybody that does not think that that should happen, andrew. everybody agrees in united's smart, they won't let it go on longer because, look, we've been talking about it for four days straight. at some point, the attorney for dr. dao says he will hold a press conference or a media briefing. you want that to come up? i mean, if he -- even if he settles it, that could still happen. get it taken care of as quickly as possible. >> okay. phil lebeau, appreciate it. thanks. >> you bet. >> time for cnbc news update with contessa. >> russian foreign minister is meeting with syria counterparts in moscow. it's amid, of course, escalating

tensions in the middle east after united states launched a missile on a syria air base. syria blames damascus for the chemical weapon attack that killed 90. another says syria is responsible for the chemical attack. she spoke with reporters saying evidence is strong that a deadly gas was used. >> scientists analyzed materials from the site of the attack. they are very clear of the substance used, and as the ambassador to the united nations made clear yesterday, like the united states, we believe it's highly likely the attack was carried out by the assad regime. >> forces conducted a strike on an isis tunnel strike today using a bomb dropped from a u.s. aircraft, the strongest nonnuclear bomb in the u.s. arsenal, and, of course, it's nicknamed the mother of all bombs, or moab. that's the update at this hour.

back to you. >> thank you very much. on the floor, less than an hour to go, joined by peter costas. a tough way to end the week, going into a three-day weekend, and i'm sure people feel they can't be exposed to what happens, especially the president leaving the door open to north korea. >> that's the thing. we spoke about the geopolitical risk going on, and i think this is one -- the risk is long term. this is not short term. syria, had the action that the, you know, u.s. took, short term, market reacted. this is something that's longer. this is a very unclear situation. >> but oil did not even go up. >> no, i know. >> telling you how the world changed. the u.s. -- sure, there might be more to come, but this does not feel like a war sense. >> it doesn't, but look how gold acts. gold up every day this week. the anticipation -- i don't know

if it's dangerous yet, but we're in a traditional point where things would turn south. >> yeah. >> that's what you see in the gold market. >> quickly, how does it change the thinking around trump's agenda, the tax cuts and so forth? >> the reality of the situation is that that's going to take time. you know, and i think that, you know, reagan took two years to get his tax passed, well warranted. people understand there's a longer time frame and people focus on earnings. you saw the earnings were good this morning. >> this morning, gold leading. >> i know. i know we look great. it looks great, and then all the sudden, you know, you have what's going on overseas, and that changes the picture. the dynamic changes quickly. >> certainly does. see what next week brings, thank you, peter. have a great weekend. >> happy easter. >> you too. >> it is lord of the flies down here today. dow looks like it is going to end -- closer to three-day

weekend and 3:33's coming up, down about 100 points, 95 points now, s&p 500 off over ten points. coming up, the sector that's a hot focus of private equity, and retired army colonel jack jac s jacobs, why the so-called mother of all bombs was used by the u.s. military now. whoop, whoop! nalysis, nalysis, and a team of experienced traders ready to help if you need it. it's like having the power of a trading floor, wherever you are. it's your trade. e*trade

welcome back, a close eye on the markets, of course, look at the dow by the way, now down 116 points. we're below 20500. we were up this morning, but then word came out of washington this afternoon about the united states dropping the biggest nonnuclear bomb ever in afghanistan today. joining us now for more is retired army colonel jack jacobs as well as cnbc contributor off this week if wall street is ready for, yes, a war. colonel, thank you for being with us. what was your reaction to the size of the bomb dropped on afghanistan, and what that implies for the future of the conduct against isis. >> well, you know, we have bigger ones than this. this gd43, about 21,000 pounds and it's got 19,000 pounds of

explosives in it, very powerful explosives, too, one and a half times more powerful than tnt. we got a bigger one about 30,000 pounds, and that's the one we'd use to try to get underground facilities like nuclear storage facilities and so on. with that one, you can penetrate with a delayed fuse so it goes all the way into whatever bunker you want to destroy, and then it explodes. this one -- this one is a very large bomb and designed to take out exactly the kind of target that it went after. you know, we have satellites and we have drones looking at this area all the time, and we saw a lot of enemies going into these prepared positions in the mountains, decided, the commander there, the authority to do so, decided to hit them with a bomb, this is an interesting time to do it because most of the time the enemy is very, very close to

pakistan, even since the winter in pakistan, and when it does come into afghanistan, only does so during the fighting season when the snow's have melted and it's easy to go through the passes and so on. it knows that the afghans are not going to come after them because the terrain is extremely difficult, thus use of the bomb. colonel, quickly, the market's been relatively down at this point, but nonetheless, what are the permutations? what's next in terms of what investors and the rest of us should be thinking about where this all goes? >> i wouldn't worry about afghanistan. the place to be concerned about, fra frankly, is north korea. we're trying to work with the chinese to come up with a solution for north korea, but since the north -- the chinese and we have ignored it for so long, it's now very merely in crisis situation. with respect to russia and syria, syria's not going to be a problem that's going to be solved any time soon, and russia's not going to give up

its claim to a couple warm water ports there, so that's going to be tough too, but the real potential crisis is north korea. >> and, by the way, the president did just address this in some comments made about afghanistan. take a quick listen. >> does this relate to north kor korea? >> i don't know if it sends a message. it doesn't make any difference if it does or not. north korea's a problem. the problem will be taken care of. >> so, ron, how does this all figure into what you're discussing? i hate to use the word "war," but partly because i'm not quite sure it applies in the way we think about it, you know, in earlier cases, so what do you see for the further potential for conflicts here? >> that's right. we're seeing, i guess, what jack might call a-se met try call military operations on behalf of the united states. military strikes on syria, one today without the intended con

kwen consequences, and one in afghanistan today. what worries me from this perspecti perspective, some of this, jack, correct me if i'm wrong, tactical more than strategic. it does not look to be a part of a broader overall military vision for the united states, and instead dropping our famous bomb that bear markets are defined by two things, rising interest rates or tighter policy by the fed or uncertainties leading to the on set of war. to the fact this raises that premium, the mark's not prepared for something like this, particularly it any one of the item leads to unintended consequences. there is risk of that from our perspective. >> ron, do you think the market is overreacting, underreacting, now had a couple of these situations, and it's been relatively muted thus far. >> it's interesting, you used the word to use, surprisingly

complacent in so far as the president's domestic agenda with the exception of neil gorsuch on the supreme court was beaten back by variety of interests. the tax reform after health care reform, deg regulation, infrastructure spending, obviously, military spending's goings to go up, but the market rally, in addition to increasing corporate profits predicated on a successful and relatively rapid implementation of the president's domestic agenda. the items overseas also delay around that, the market's vulnerable to a pullback, and we're approaching the sell in may and go away season, and that might be a wise strategy this year. >> well, certainly the markets are moving lower in the session here. dow's down 122 points now, session lows. colonel jack jacobs, thank you guys both for joining us. less than 20 minutes to go into the close. >> okay. with that, as you just did with the markets, down about 100

points. tech stocks popular, and now private equity shedding conservative ways for high flying tech companies talking about that in a bit, and then -- >> he's one of the nfl's best paid coaches, but one of the keys to the success came from a job where he didn't make a dime. bill belichick talks about that in the explosive coming up. own that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

just down 123 points, lows of the session, just a few minutes left to go. have not seen art cashin yet in terms of market imbalance, but not a lot of people want to expose in the market into the weekend. s&p down 14 points, down three-fifths a percent. everybody's weaker today. tesla, though, moving the other direction, a boost from the ceo saying tesla's semitruck unveiling is sent for september. the giant's plan for a semi was part of a master agenda released last july. still, plenty of excitement in a stock up 45% this year. >> in the meantime, for years, predictable industrial companies were the target for equity, but

we have a story from leslie picker on how that's changing. >> hey, andrew. there's little about tech companies that would scream private equity investment. they are constantly changes, sometimes unstoppable, and lumpy sales, but the first quarter showed it's becoming increasingly popular sector for private equity. one fifth of all deals completed in the first three months of the year were tech companies, about twice the proportion of pe tech deals over the last decade. that stat according to a new report out by pitch book, but what makes tech popular? according to pitch back, they appreciate being private, allowing them to execute with a longer term vision without having to worry about things like earnings and quarterly results, and additionally, we've seen firms paving the way like silverlake, vista equity partners and others putting equity to work. they acquired an $800 million software company called plando while kkr bought offseat

security for $2 billion. one thing that's avoiding the sector, though, evaluation, and the first quarter's yielded the highest buyout multiples of any period since before the financial crisis, guys? >> amazing about this is that they are just following the cash flows. >> yep. >> and the lows, this level, so why wouldn't the companies be perfect targets for private equities? >> now they finally are. >> assessing the valuation. >> crazy. >> how much a risk is that, leslie? >> well, that is the biggest risk to the sector as a whole. we're looking at 10.8 times when it comes to enterprise value relative to multiples. that's the highest it's been since before the financial crisis. we know what happened last time. >> right. >> so the issue here is that you've got private equity firms selling at high multiples, then in turn using cash to buy new ad risk. the problem is there's so much competition for the new assets,

they drive multiples higher and higher and higher preventing turn around strategies that we see. >> okay. thank you, leslie. appreciate it. 12 minutes before the close of the three-day weekend. comeback marginally. about now. s&p 500 off ten points. >> bouncing around this afternoon. spring is in the air this week. it's also on david's mind, he's back and market acronym of the week is next. we've done well in life, with help from our advisor, we made it through many market swings. sure we could travel, take it easy... but we've never been the type to just sit back...

not when we've got so much more to give when you have the right financial advisor, life can be brilliant. ameriprise

[ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ]

whoo! boom baby! rated pg-13. [ screams ] welcome back. it's 200 million to buy, and as mentioned, well oaf the lows, still down 94 points. on the floor with david darcy, consultant himself. >> one and only. >> happy passover everybody, and happy easter, everybody. >> you brought us an acronym that's perfect for how it is in new york city. >> people talked about a lot of hubris in the market. >> hue bis, okay. >> that comes from the greek word hubris, to curse, and only a god was allowed to put a curse on a tree, animal, or person, and when a human being did that,

out of overweaning pride, they were hubris. that's what the market is one of the criticisms of the hubris in the market. syria, north korea, and now afghanistan geopolitics, okay? the p is profits, up 10% this year, 10% next year. people begged in the trump balloon after the election if the the market to come back and buy. this is that opportunity now. nibble. i is recovering oil price. that went from 46 or so, and back up to 53. that is the low interest rates and the currency talked down, which helped the dollar and helped profits and helped exports. that is good for profits. not a currency manipulator.

it shows that adults are in charge of the international part of the united states profile and g is the gauge of the french election, april 23rd, shakespea shakespeare's birthday and death day. >> andrew knew that. >> 52 years he wrote 39 plays. i can't wait -- >> you had me scared with that hubris. >> buy emerging markets, weaker dollar, help a lot of the emerging markets, and helps -- >> you want me to nibble? >> nibble, andrew. you're up, nibble at europe. that's a valuation story. emerging markets, more of a growth story. >> all right. >> you asked. be careful. you got the debt, continuing resolution coming up in a few weeks, and that's something that

would worry the market. >> well, we'll save that for another time. >> love this guy. >> amazing. >> happy birthday. >> thank you so much. >> andrew, congratlation in front of everybody on your wonderful insightful piece in harvard business news and new york times. >> thank you, your check's in the mail. >> we have breaking news? court? >> talking about store closures, jcpenney closing 138 stores, however, i confirmed from the company they are now postponing the closure date for the stores and postponing the liquidating by six weeks. sales in traffic better than expected to the stores identified for foreclosure. they said it's not totally uncommon, some shoppers come out for nostalgia, others great deals, but it's prudent to keep those stores open and running at the current level of promotion before they move to liquid dags now beginning on may 22nd

opposed to april 17th pushing closure to july 31st from mid june. back to you. >> all right. >> thank you. coming back, five minutes away from the three day weekend. >> not that you're counting down or anybody educational around here, by the way. after the bell, lawyers for the man dragged from the united flight sunday said today a lawsuit was probable and united issues another statement following the attorney's news conference. all the latest on united's pr woes, impact on the stock, watching cnbc first in business worldwide. flr armers, we've seen almost everything, so we know how to cover almost anything. even a coupe soup. [woman] so beautiful. [man] beautiful just like you. [woman] oh, why thank you. [burke] and we covered it, november sixth, two-thousand-nine.

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♪ ♪ start trading today at etrade.com . we are two minutes away, by the way, the s&p looks like it's going to close its lowest since february 13th, biggest stocks, you know, we talked about it all day, united, only down, by the way, given all the noise, about 1.1%. since last friday, lost $538 million of market cap. we have to compute what that ultimately means. is it really over half a billion dollars of losses? the big floor 85% of the airline industry, may be a buying opportunity. we'll see. we're now coming up, about a minute and a half left, bob pasni is hanging out. good to see you. what's going on?

what are you looking at? banks? energy? >> the trump agenda -- >> right -- >> sideways right now. earnings are good. that's a positive. the economy's okay. i think this week the problem we see is geopolitics is a risk factor in the market, and i think the market is reflecting that uncertainty right now. two things concern me. we had heavy volume today in bank stocks and oil stocks. now oil, you heard, behaved well. look, $53 all week. you'd think energy would be up. it's not, though. we had heavy volume here. that concerns me. bank earnings, my opinion, better than expected overall. we -- beat on everything except for wells fargo light on revenue. that net income is okay. loan growth slower than expected, numbers bent tter. >> how do you handicap the risk? >> translato >> the market is doing that now, the lowest levels since 2013.

it it's my opinion the reason does not have energy to move forward this week is geopolitics, the new risk. we'll see what's going on. >> a three-day weekend, and you want to be out for a little bit, but must be what happened over the weekend. >> 1.5% from the historic highs. >> fair enough, bob pasani, heading back as we close over here. kelly? >> thank you, andrew, welcome to the closing bell, everyone. i'm kelly evans, what a day on wall street, stocks from the lows, a three-day holiday weekend. the dow's dropping 135 points, again, we only even turned negative at noon when word released that the u.s. dropped a massive bomb on afghanistan, and we just didn't recover. the s&p closed down 15 points. nasdaq lower by half a percent. the russell 2,000 shed a percent. gold higher. gold on the ten-year lower.

all safety traits as you expect. dollar down by a quarter point right now. we're going to have much, of more on all of this in just a moment. let's get to kayla with more information on what we know in terms of the detail of the bombs today. >> you mentioned it was the news that's moved the markets as this whole week has been geopolitical news. the department of defense provides details about exactly when that bomb was dropped on afghanistan. 7:32 p.m. local time targeted in northeastern afghanistan, about two hours from kabul. they targeted an isis tunnel complex, what they called a stronghold of isis in the region and said it'll continue its offensive operations there to continue to root out isis. a common statement from the commander of the u.s. forces in afghanistan says, "as isis losses have mounted, they are using ieds, bunkers, and tunnels

to thicken their defense. this is the right munition to reducereferring to the sector in isis and afghanistan, the pentagon clear the u.s. military action to target in january of last year. the bomb is called the mother of all bombs, but the real name is the massive ordnance air blast. it's north of 21,000 pounds, and it is america's most powerful nonnuclear bomb ever used in combat. the moab, the mother of all bombs, and as you heard that quote from the commander of the u.s. forces of afghanistan believe it was the right munition for this particular mission, and the president this afternoon called it successful. >> we have the greatest military in the world, and they've done their job as usual so we've given them total authorization. that's what they are doing.

frankly, that's why they've been so successful lately. look what happened over the last eight weeks and compare that to really what happened over the last eight years, you'll see there's a tremendous difference, tremendous difference, so we have incredible leaders and incredible military. we are proud of them. this was another very, very successful mission. >> that's the latest in afghanistan from here in washington. the president to have departed for florida, and if we have more news, we'll bring it to you. >> thank you very much. joining us now, tiaa investments here with me at post nine. art hogan, and cnbc contributor, he is sticking around, ron, thank you. talk about if wall street is ready for a war. put into context what we're seeing. the dow down 138 points now, just continuing to tip lower into the close there. >> yeah.

when we started the day pretty okay, with good earnings, right? from jp morgan, citi, most of the banks had good things on the conference calls as well, and then you have some good economic data, and -- >> jobless claims, confidence. >> confidence was amazing. midday, hearing about the bombing, that's when the bond market took over and yes took another leg down, and that's what is driving the markets now. it's yield. first thing of the day, and they look and see where is the ten-year? down? if it's down, markets down. if up, we're up. used to be oil, and sort of still is, but that seems to be the driver in the short term. >> oil taking that in stride. great point. art, yesterday huge news as well in terms of interest rates when the president did not want a strong dollar, that pushed the dollar lower, and likes janet yellen there, low interest rates, pushing rates lower too. this is a backdrop now, again, rich people have to figure out

the next kind of geopolitical risk, north korea or otherwise. what do you do in this environment? >> kelly, that's right. that's not the only pivots seen. we certainly see a pivot back to repeal and replace before tax reform, and so i think you got a combination of that. it's not surprising that before a long week, geopolitical hot spots lining up, that we have the market sell off. to her point, we've seen the beginning, tip of the iceberg in terms of earnings and it's better. you know, the s&p 500 earning 8.9%, best quarter in the cycle, and we are wrong by 2.5%. double digit earnings, focusing on that more next week and get clarity on just where we stand on some of the geopolitical hot spots. right now, that's all we can talk about. >> but them in charge of health care, any spare time right now because they are getting stuff done. >> well, they are cleaning efficient, although, listen,

it's not a period over eight weeks that they operated with complete precision, accident in syria taking lives of syria, operations in yemen went awry, so, yes, there's activity, but what worries me is the unintended consequences and uncertainty that preseeds a broader military conflict. that unsettles markets. oil's not responding, depends if you're fighting in syria, afghanistan, or looking at north korea, oil's not an issue. it's not the centerpiece like in iraq or other parts of the middle east. you know, oil may play a secondary role, and the markets have to adjust. there's a rapid pace of pipeline generation. the domestic front and joe yo political front, and that's making the market be off balance. the view of the economy, and aspecter we're talking about and

yet interest rates moving lower like you said and everything is off the table. do you put that trading book aside and say it's a flight to safety? how do you know how long this -- day-to-day, how long does it last? >> march 1st. cyclical stocks rolled over, defenses led. i think at some point that's going to get unwound because i think earnings are really going to show really good numbers for the cyclicals, and the defenses are expenses. they feel good numbers, but they are expenses. we just have to get the macro to calm down, might take a couple weeks, but i think that the economy is actually the under pinning of it all. the economy is a little bit better. the global economies are a little bit better. earnings are going to be bette . earnings go up, stocks fall. >> that said, level of interest rates are interesting in this. warren buffet said, call the stock market overvalued unless

you say interest rates stay at low levels. well, we've been given interest rates stay at current level, but interpreted as a bad sign or doing that for wrong reason. is that going to change? >> yes. think about the ten-year the flight to safety, capital flows, what we're seeing now, that yield on the ten-year for four and a half months. we get back in the range, you know, around later with other hot spots calming down, more answers than less questions, and to the point, it's about the economy. it's not just the domestic economy. it's picking up in the global economy, that helps the united states and that's going to be the next driver to the upside. you know, we can get in and out of the skirmishes without a full on military assent. we can do things that are fundament fundamental. >> better if the easter bunny does not spoil it. stay there, everybody. earnings are upon us.

disappointing results look to point fingers at outside sources. we have one the most common reasons or excuses for this time of the year. >> that's right, kelly. when it comes to quarterly earnings, the easter season has one big effect. spike in companies blaming holidays for weak results. easter is march or april, switches which fiscal quarters earnings are up in. they started earnings calls in ten years, and makes sense for cap di makers to see the spike in sales at this time. it cuts across many industries. every sector other than telecom mention easter. l brand blamed this for hurting sales, wondering how people celebrate during the season. constellation say it's great time to sell liquor. tractor supply say it is the

start of the outdoor season. mccormick says their heavily hispanic base made easter important. pay attention to earnings in the next two weeks, especially a lot of companies blame the bunny this year because easter is this weekend, but last year it was in march. change of quarters. look for points to that as a reason for weaker earnings. back to you. >> constellation is not one i would have thought of or mccormmccorm mccormick. because of the hispanic customers? >> yes. >> eat at home. >> yeah. >> when this happens, obviously, it's -- most of the holidays are the same day every year. >> yes. easter is not one of them. when it comes next week, if we start to get disappoinments, you mentioned a lot at stake here people looking for earnings to deliver for the action we're seeing today. >> right. for the first quarter, consumers did not show up, right? that was really one of the reasons why we're only going to see a 1% gdp numbers.

think the easter shares had anything to do with this. >> i actually do. i do. i think that and capped delay is a reason for it and it's a blend. you have to blend march and april together in terms of easter. that's what we do. i don't think people freak out too much. it's well testify gralegraphed, have great consumer confidence today, that needs to translate into better sales and early read on march is that we saw a pickup, 5.5%. retail tomorrow, big numbers to watch. >> we spoke to gamestop about that, and, art, reminds me people refer to march and april as marple, buying into one period in order to get better comps, so, yes, something clearly happened in february, though, the consumer, and there's been concern about, you know, the quality in autos, for example, among other factors, and yet the sentiment data, jobless claims, those are good. >> it's amazing.

something did happen in february, warmest february in 50 years. we are creatures of habit, so construction jobs created, but not used to that until memorial day, labor day, back to school, and easter and spring shopping season. i think it does make a difference here. i think really when we get a sense that the survey data shows a very confident consumer, but until we get to move on pro-growth policy, that survey data turns into hard data. gets pushed out a bit. there may be a time frame where we have to wait to get results and get to the legislation before we see the results. >> that's, ron, what i was going to bring up. steve pointed out there's an interesting clarity in the consumer confidence between republicans and democrats, for example. that was in the president's approval rating for being low. they came up a little bit as some of the bombing has happened in the middle east. so what do you think? people nervous in the market

place? hurt consumer confidence or bolster it? >> shows a strong president, the president who is willing to, in this regard, make good on promises he's made on the campaign trail, which is to take out isis. that's something that today's bombing was in part designed to do. i think that comments yesterday to deviate from that question was respect to janet yellen, adding he likes a low interest environment in a time they normalize interest rate policy adds another element to the market. although rates are not going down, they talk about strength in the economy. first quarter number in the last six years have been just because they have been seasonally distorted for a reason or another. if the economy continues to accelerate, the fed raises rates, despite what the president has to say, and that's going to create markets above and beyond what we have, domestic or geopolitical. i think there's risk here. you know when the economy looks good. i think we have a mishmash of headlines, making difficult for

the next couple weeks in the market. >> all right. that's the case today. thank you for joining us. appreciate it. lawyers for the passenger dragged off the united flight speaking today saying his client did suffer major injuries. up next, the latest on the incident and hear from former airline station manager about what united needs to do to gain trust back. president trump has reversed his rhetoric on a few hot topics like china and janet yellen. more to come on cnbc, first in business worldwide. flr stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most.

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because we should fit into your life, not the other way around. go to xfinity.com/myaccount . welcome back, the lawyers for dr. david dao, the passenger dragged off the united flight, holding a news conference today. phil lebeau has the highlights, phil? >> reporter: during the conference, the attorneys for dr. dao made it clear he suffered serious injuries during this incident on sunday night, just how serious? we're talking a broken nose, lost two teeth, had a concussion, and bumps and scrapes, overall, said it was a horrific incident. in fact, they said dr. dao said not even escaping vietnam when

he had to escape vietnam was worse than what he went through. the united attorneys basically, the attorney for dr. dao, by the way, saying, look, there's a culture of disrespect at united, and said it's a case where this is a company that needs to change and needs to change its culture quickly. >> the fact of the matter is, yeah, there's a lot of angry people out there. unit ed customers, united employees. so, yeah, it's something that mr. munoz and his people need to look at because the public relations problems that they have are not just limited to this video. >> after the press conference, the public relations department from united issued a statement saying we continue to express our sincerest apology to dr. dao. we cannot stress enough that we remain steadfast in our commitment to headache this right." as you look at shares of united,

we point out that the pr department at united says, look, we can show you call logs showing that oscar munoz tried to reach out to dr. dao. in the press conference today, kelly, the attorney said munoz never talked to dao. we never heard. they claim they did. that said, this is not the last time we'll hear from the attorney or dr. dao because they got the hammer right now. there's a hearing next week regarding evidence of the incident sunday night. we'll likely hear from them again. >> oh, yeah, phil, stay with us, if you would. bringing in our aviation consul substantiate, mike boyd, and, mike, you know, as pointed out, why doesn't united offer the guy megamillions right now and just hope the whole thing goes away? >> probably should. i think this is just from -- i think you're 45 years in the business, and i've never seen this happen before to a normal passenger, so we're blowing this

up to make it look like united's a terrible airline. not true. like united, like the lawyer imploy i implied, not true. we have a problem with overbooking. not true. pay the guy. let him go. it's a cost of business. move on. >> overbooking is more kmocommo right? >> no. it's less common. there was a report last week showing the number of denied boardings last year was at its lowest level, something like 278 years. the airlines are doing a better job of having those denied boardings. in fact, for united airline, 86 million passengers last year, and only something like 3800 times they had to say to somebody, look, we offered you money, you didn't take that voluntaril voluntarily. we need the seat, get awful the flight, 3500 out 86 million passengers? it's not common it happens, but nonetheless, you saw this video.

that's why they are in the barrel right now. >> it is interesting. i stand corrected. we are familiar with showing up to the plane, waiting to get on, seeing the list of people trying to get on or offered money. i don't know what it takes for that to count as a stat, but i guess it feels like it's much more prevalent, mike, than it is. >> blown up to be, certainly. it is rare, and it is almost never happening when someone on the airplane is told to get off the airplane. they are denied boarding, not risked off the airplane. unfortunately, this is so messy what the lawyer said was, you know, really nice stuff, but the fact is, there's not a culture problem at united, but somebody made a stupid decision. it's not overbooking, somebody at the gate who made a stupid decision. pay the guy whatever it is. cost of doing business. stop characterizing this as ongoing poor thing when you travel. >> i wonder, phil, how much overall decline is delta's improvement?

they were really good at dealing with the problem, and we know they asked people the price when they check in. >> right. >> taking them out, has it gone up for the industry, i wonder? >> no, it's down for the industry, kelly. >> right. >> it is overall -- >> delta's improvement -- >> even with delta. all airlines, really where this started, go back to when jetblue had the incident, people parked out on the tarmac for four, five hours, back to the day, they made a decision back then, even before that incident, they said, we're going to try to not have denied boardings. not going to bump anybody from our flights. that's spread through the rest of the industries including at united. that doesn't mean it does not happen, but it means they are much better at their passenger management system. the software improved, and overall, they are doing a better job of not having to deny boardings. again, they -- >> to be clear, thisfuls not a denied boarding issue. this was a customer service screwup. it was caused by overbooking issue, but we don't have an

overbooking problem to discuss. we have a bad customer service issue to discuss, and that was a one incident. >> mike, we know this is the reason why it's attractive to investors that the airline industry is maxing out the number of people in seat on every flight, so, again, i'm not sure, you know, people know these planes are fuller, and i don't know what it takes to count as an actual stat to be overbooked, but that's undenial in the last couple years, right? >> overbooking is one thing, kicked off the airplane is something else. this is a case of bad customer service, nothing to do, per se, with the issue of overbooking flights. focus on that. someone in the airport really screwed up in handling this, but it's not -- this could have happen happened for other reasons, but overbooking is the no the reason. it's bad customer service. >> all right. well, gentlemen, thank you. mike boyd, phil lebeau, i learned something. united has work to do apparently. appreciate you joining us.

last round concluded, a surprise bidder. julia? >> surprise is that t-mobile won the biggest member of licenses in the auction spending $8 billion for radio frequencies to transmit data to television and phones, a t for wireless services. it's the largest investment ever, looking to boost t-mobile's offerings against rivals." dish was second. the stock was lower by 2.5% as it was unexpected. they said they are expected to sell speck rum likely to verizon, but verizon did not bid at all despite to committing to participating in the auction. comcast biggest spender spent $1.7 billion and expected to use that to bolster wireless service. back to you. >> looking at the note on this, saying he expects investors to

react negatively to dish, positively to comcast, but t-mobile looks like a world play, other major markets, and maybe they need more better coverage overall still. >> exactly. that's really what's going on here. we saw press release from t-mobile, talking about how they are going to use this to make themselves a more robust rival to the other wireless carriers nationwide. >> good stuff. thank you, julia. appreciate it. president trump promised to make americans feel great again and steel manufacturers are ready. live in a steel mill why they are optimistic about the industry under trump after. this. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife

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president trump promised to redefine the american steel industry. we are are in minnesota with what the industry is seeing and hoping for, jackie? >> reporter: hey, kelly. yeah, that's exactly right. when it comes to reviving the steel industry, president trump said he wants pipelines, for example, so he wants steel made in the usa and iron ore for the steel probably comes from mines like this one. this particular one is operated by u.s. steel, the employees here are very optimistic, but this goes beyond pipelines, and that the trump administration will revitalize the industry with infrastructure projects as well. >> make america great again,

make steel great again, connecting parts of the tissue here, the human care works, people hope better times are coming. >> reporter: and the human spirit that mark mentioned there is palpable at the mine and processing plant. now, many of the steel workers voted for donald trump, and they are optimistic he'll bring manufacturing back to this country. u.s. steel is one of the oldest and largest steel producers in america. he says that part of the problem has been anticompetitive trade practices and foreign governments subsidizing the competiti competition. they say if the playing field is level, they can compete much better. one thing is forsure, the company is excited about the prospects for the industry and they also feel it's certainly possible to add these new waves of steel to the mix. they are optimistic about their families and the generations who worked in the mine and work in the processing plants, and they say donald trump's administration will do good

things to bring manufacturing back home and stamp things made in the usa. kelly? >> also wondering, jackie, the president, for example, labeling china currency manipulators, backing off from doing that, but the administration is talking about steel coming into the country, i think, so do they feel he's still striking the right balance between pushing hard of steel dumping -- i don't know what's more realistic about possible things he could do against china as one example? >> reporter: you hit on a glaet point there. we certainly had conversations about china and dumping steel and bringing the prices down. it's certainly been a problem for the industry. remember, a lot of the workers here have dealt with many cycles, and they have seen this before. they are optimistic, i'd say. they are hopeful about this trump administration doing more to level that playing field, but there are a lot of up knowns as well. that's really the big question here.

still, right now, i would say the hope is certainly there. that he'll continue to forge forward and saying he wants a pipeline steel made here is the first step in the process. >> all right. jackie, thank you. love the hard hat. as always, jackie there with iron, well named. time for a cnbc news update, contessa? >> the canadian government is introducing legislation to end a nationwide prohibition on recreational marijuana, the largest developed country to do that. adults 18 and older would be able legally to buy and cultivate small amounts of marijuana for personal use. >> if your objective is to protect public health and safety and keep canada to the hands of minors, stop flow of illegal profits to organized crime, then the law as it stands today has been an ab jekject failure. >> two ohio based manufacturing

companyings rule some 146,000 garbage disposals. anaheim manufacturing and moen received reports of metal components breaking lose and three reports of parts hitting the customer. it involves three quarter and one horse disposals. 3,000 people showed up for the biggest "star wars" convention. lines wrapped around the orange county convention cementer. some dressed in their favorite characters, all received par tis make medals. okay. i made that last part up. obviously, the people are very enthusiastic about their star wars. >> i think i got one in the half marathon too. >> participation medal? >> a nerd participation medal to be honest. thank you. what the author of a new book on baby boomers calls the president, up next, joining us with a take on how the boomers in the white house are actually part of the group hurting

america's future and cnbc's lai larry kudlow and how maybe larry himself and other boomers can save america. stay tuned. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov it's league night!? 'saved money on motorcycle insurance with geico! goin' up the country. bowl without me. frank.' i'm going to get nachos. snack bar's closed. gah! ah, ah ah. ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪

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welcome back.

the president reversing course this week from nato to low interest rates. we have a check-in on where he stands now. ylan? >> the president appears to be moving closer to the center of the republican party and away from the popular message that got him elected in the first place, so we took a look at this contract with the american voter that he put out in the campaign. we wanted to see how many goals have. met as we approach the first 100 days in office. some of the things the president can check off the list is the chance of a partnership, for example, that happened on day four, approve the keystone pipeline, signed the executive order march 24th to do just that. judge gorsuch sworn in on monday, but there are things he's not even started like imposing term limits on members of congress or proposing legislation on school choice, and there's a number of issues on reversing course in the past few days, telling wall street

journal he's not labeling china a currency manipulation despite calling them the champion of manipulation weeks before. he even stated support for fed chair janet yellen. the first hundred days are an arbitrary benchmark for progress in any administration, but the tone he sets now sets the narrative of the next four years, kelly. we'll see how far it goes. >> thank you very much. all right. reversals, what are they about? joining me is larry kudlow and bruce, author of a new book called "a generation of sociopaths: how the boomers can trade america." welcome both. >> are you okay sitting here? he's a boomer. >> not all boomers are sociopath, but as a -- >> delighted to be next to you. >> thank you.

>> we'll talk about this in a sec, who warned me about what the boomers are doing to america, my father, considered one of them, but in any case, larry, the president has change course on a number of thicks. is that a big deal? >> it's a deal. his major issues, no. i mean, it's confusing. he still wants tax reform and health care reform. those are big issues for him. i know it's confusing. i got my own criticisms about it. unfortunately, he still wants some sort of trade tariffs, right, maybe what he calls reciprocity. i don't agree with that but staying with that. it's generic he's staying with overturning the establishments, the elites. that's the big picture. however, one reversal i like very much is the currency manipulation. there's no evidence that china has manipulated, and since original tank to the dollar back in 1994, the yuan is up 40% and

in the last year spent a trillion dollars defending the yuan so i'm glad he saw that. that's a fact based changed and glad he did that. that reversal was good. >> look at that relationship, speaking highly of president xi. >> on that, quickly, he said that we're going to go easier on china as a result of north korea and the rest. for example, now i did a shift on the currency manipulation, but with respect to full blown media trade sanctions on i think that's a very good adjustment. >> all right. bruce, one thing that is always on the boomers is look at the entitlement problems, looking at the debt you left us with. that fits into maybe it's a key party thing, but core parts of the republican platform for years now, and yet the president did not campaign on them or talking about it every day, you know, and most of the people who are ringing hands about it want

the president or want young people to care about it. here you are. you care. we should all care. it's not a priority for the administration, is it? >> it's not a priority only to the extent that both he and clinton agree during the -- it was the only thing they agreed on that the entitlement system left as is, although maybe only one understood, that the system is not sustainable without reform. that should have suggested to people what group they were buying off whom so you're correct. the boomers, they have been in control of government since the early 1990s. absolute majority of the electorate in 1982, in control of the 1992 election, then and gingrich takes over. saw in both parties, bush 2, medical, part d, just -- we have not dealt responsibly with the enormous issues this country

faces. >> by the way, bruce, jared kushner is running the country, and he's only 38. >> no, a magic 8 bowl and roulette wheel are running the country. >> i was a boomer working for reagan. he had a lot of boomers, bringing young people -- i was young then -- bringing young people in the government for the first time so i don't know. look, i'm going to give trump credit even though it's unfinished, for heaven's sake, less than 100 days. he wants to get rid of a major entitlement which is bankrupt -- >> obamacare? >> correct. the numbers are in a downward spiral. having a hard time doing it. entitlement reform is so difficult. second point is this. i think medicare and medicaid need some reform. especially medicaid. i don't buy the social security collapse. all depends on what you think the economy is going to do in the next 40-50 years. if i -- >> i know where you are going

with this. growth at 3%. >> no way it's 3% other 4%. >> don't say no way. between 1950 and 2000, real gdp growth was 3.5% per year and that number oddly enough was true for the entire 20th century, so it can be done and it has been done, and it will be a big fit. >> i agree, but here's the difficulty difficulty. one, the cutoff in 2005 is comes because you excluded chaos that ensued since then. second thing, is the country invested in growth, in that period? there was a commitment to research and development both on the private and public side, and now we see research and development fall from even from the 1986 and we've seen net infrastructure investment collapse as low as 0% of gdp rebounding, and we've seen the

insidious defunding of high quality public education at the college level. >> i'm for education choice. >> feels things you mentioned are more aware of the administration or might be a priority, even the public education, arguing look what happened in new york with charter schools. maybe they are more of a handout. >> again, trump, i guess you don't like trump, okay -- >> no, i don't know what to think of him because that's nothing -- there's no sense -- >> on his point, he does want to rebuild infrastructure. i hope it's done privately, not through the government, by the way. he is for school choice. public school choice, some of it is private school choice. i think that's a good thing. he wants lower corporate tax rates where there's incentives in washington. that would be the best pro-growth thing, pro-competition we could do. i say he's trying to fix a lot of problems that have gone unfixed in the last 20 years. i'll acknowledge that.

again, groeft solwth solves pro. when i say growth, i don't mean government growth. i mean private sector, incentives, initiatives, rewards, entrepreneurship, business startups. that's the heart of america. new things. i don't fear robots. how's that? i don't fear artificial intelligence. if -- >> inventing artificial intelligence robots, for entrepreneurship and appropriate tax regime and would be nice -- i think the danger is that trump does too little and not in a coherence way. the infrastructure is that -- >> is it 80 days, give him a chance. >> by the way, if you want to hear more, the new book "generation of sociopaths: how boomer betrayeded america."

larry kudlow. thank you, guys. >> thank you. >> thanks, kelly.exclusive, tal new england patriot's coach, bill belichick, turning life lessons into success on and off the field. that's next. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me?

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new england patriots head coach bill belichick set a new record, and we sat down for an

exclusive interview with the coaching legend and among other things, talking defining moments of his career. >> what would you call your most defining moments of your career? what do you remember the most? >> winning my first year in 1975, took the job, didn't have any experience, and they were very understaffed. i was not paid anything, but i had a lot of responsibility for that position, and so i was able to learn a lot. it was like having two or three graduate courses in one year. after that year when i went to detroit, we were 1-4. we were playing patriots who were 4-1, they were a great team, and i we want back with the experience i had in baltimore, talked to the offensive coordinator at that time and said, look, we've never used this formation, but i studied the formation in baltimore last year, and i think this is really going to give the patriots a problem. can we look at it? we went through, looked at it, used it, and we won the game by

three touchdowns, a huge success. that was kind of one of those, like, okay, i can coach in this league. >> what did you take away? >> don't be afraid to use a good idea because it's unconventional, nobody else did it, if you believe it's a good idea, then, you know, don't be afraid to use it. fast forward, i take the job with the patriots in 2000. the first meeting we have in the spring, this is back in the old foxboro stadium, a small room, squeezed the whole team in there. there's the guys, draft picks from a prior year, walked into the front of the room, not the back, but in the front, sits down, and i'm already starting the meeting, three, four minutes into it, and i look at them, like, what are you doing? sorry, coach. sorry? get out of here. we're not going to start this program off with you walking in whenever you feel like walking in. i don't care if it's a no. 1 draft choice or not. we are just not going to run a

team like this. >> and cnbc contributor joining us now to talk more about that. i love this. don't be afraid to use a good idea just because it's unconventional and someone has not done it's unconventional and someone hasn't done it. >> don't sell to edit. don't stop yourself. you got a crazy great idea. nobody else has done it. he rehearsed it and played it out in his head. he sold it up the hierarchy. it's a great take away for anybody in a job. don't get rid of your great ideas, if they're new. >> one thing that drives me crazy if you notice people in an organization, they will be saying, talking to each other, geeze, it shouldn't be done this way. it's never when they're in a sticks of empowerment, it's never expressed. i don't know why, i don't know if it's because they feel it's not their place or they don't listen to ideas like this. by the way, the top level management should be the same day. i think there are coverages of

culture, we want the best ideas to last to the top. >> with the caveat, this is not off the top of his head. it wasn't like he was pulling ideas. some people are, i have this idea. they throw it out there. they wear everybody out. he has this idea. he could have watched another team. he brought it in. he thought about it and played it out and then he believed in it. it's not just your idea pops into your head when you are on the way to work. >> that is good, that is a good bill belichick aspect of it. make sure they're good '80s before you go forward with them. >> it's the early coaching years, too, to help make him the successful guy he is today. thank you for bringing it to us. very much appreciate it. you can catch the entire interview right now on cnbc.com. tomorrow is the atlanta braves opener in their new stadium. we will go there live for a sneak peek and here from the ceo and the financial institution that paid a pretty penney for the naming rights when we come right back.

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you are the most fearsome warriors on the planet. well, not you roman. you just missed the cut. [ hip hop music playing ] yeah, missed my ass. why are you always yelling? rated pg-13. experience it in imax. wmpblths. welcome back. foreman marks a new era for the atlanta braves as they pay their first game at billion dollar suntrust, joining me from that very park is the ceo of the braves and bill rogers the ceo of suntrust park. >> let's talk about suntrust park. you are moving so much further away from downtown atlanta. our fans will want to come see you north of atlanta where you are. >> we are moving right in the middle of our fan base. that's sort of the magic sauce.

three years in the making, we are opening up this fabulous ballpark tomorrow night. it is the talk of the town and the region. there couldn't be anything more exciting going on in atlanta right now. >> bill, banks love major league baseball. banc of america is the official sponsor of mlb. there are baum parks for major league banks. why do banks love major league baseball? >> i think for us, it's clear. we're the hometown bank, they're a winning team. it's an iconic brand, something we want to associate ourselves with. we get a chance to purpose ourselves to millions of fans across the country. it's a natural fit for us. >> terry, this is a technologically advanced ballpark. take us through the thinking, it's not setup, it's retail, it's commercial. what else is it all about? >> that's right. we are building mixed use, it's

a model breaker. it's the first time this has ever been done where this project and the stadium done together. comcast is our technology partner they're providing a tarabyte of the entire project. this will be by far the highest technology project ever done in any form let alone sports in the united states. >> now, bill, i would be remiss if we didn't have you about how do you feel about the banking sector overall? how do you feel about financial services in america? >> right. i think it's a healthy reflection of the economy. i think things are coming along at a good pace. most importantly, the banks are healthy. we're in great shape to spur economic growth. >> all right. again, this is a great deal here. any thoughts, terry, about how you feel about the home opener

tomorrow? >> well, we are looking forward to, we had a nice win last night. we're going to be soldout for days to come as we start the home stand, we are starting this home stand a little late in the season to have a little extra time. but it is a fabulous place. you need to come look and see what the technology. >> absolutely. >> and the form of architects are doing these days, it's fantastic. >> thank you, gentleman, for joining us. "fast money"" begins right now. >> "fast money" starts right now. live from the nasdaq market site overlooking new york city and time's square. i'm melissa lee. the traders are pete najerian, guy adami and kudlow ceo elon musk tweeting on a couple of clues about the new move that sent the stocks soaring. plus the next billion dollar drug might be hitting the market this year. we have a special report on which stocks