here on "power lunch" 2:15 p.m zuckerberg, more grilling or more grand standing? that is the question >> he's in the hot seat. >> on a roller coaster day for sure in the markets >> all right, thank you for watching "power lunch," and "closing bell" starts right now. live from the new york stock exchange, this is the "closing bell," hi, everybody, i'm kelly evans. i'm wilfred frost. after a wild week last week, we have the final hour of trading with a rally on our hands. green across all the major indexes as you can see on pace for their fourth rise in four sessions up a healthy 1.5%. >> yes >> the dow up more than 440 points at the highs today, up, as wil said, and what you have to watch about the rally coming

up first, bob pisani on the floor with a look at the action and what caused this, bob? >> 2:1 advancing declining stocks off the highs it's a broad rally, not just tech and financials. most of the sectors up 29, dow stocks up. 40 points in the dow, goldman sachs, the financials, jpmorgan reports friday, remember, and we have the capital goods stocks, particularly industrials doing well, and caterpillar is a big market leader today, and 3m is another big market leader, boeing, you get the idea big industrials that are poster childs for whole trade war they are turning around and doing well today we even have some consumer names that generally are doing well. it's been a long time since, for example, johnson and johnson or merck helped move markets forward. they had a horrible year overall, but they are contributing something i'm encouraged that energy stocks have been complete losers all year, not rallying as oil

rallied, and yet in the last few days, they are poking their noses up, and chevron and exxon doing better in the last few days fang names topped out earlier in the morning, most up 1-2%. still holding on amazon's lagging a little bit. only up 1% what's this mean where are we >> here's what i see the thing that i see most notably is volatility. notice we were down 2% friday. now up 2%. we had a lot of days back-to-back down 2% and up 1% the next day confusion. what we don't have, we don't have good market leadership. we don't put together strings of days where there's clear sector leadership, and we don't have good volume on up days like today. the volume is not good that does not make he teme happy the buyers are not overly enthusiastic with sellers holding back a bit i want big volume on days when the market is up 300 days. guys, back to you. >> bob, thank you. see if we hang on to the gains into the close meantime, white house economic

adviser larry kudlow a long time advocate of free trade and opposed tariffs over the years >> today on "squawk on the street" he defended the president's tough talk on china. >> i don't like blanket tariffs, you all know that, but i talked for years how china is getting away with stuff they shouldn't get away with. this president has backbone, right, others didn't, raising the issue in full public view, setting up a process that may include tariffs, hopefully mostly negotiations. can't rule it all out. i don't think it's damaging the market at all. >>. >> larry treading the fine line. he supports the action in general against china, but disagrees with the way or the bl blanket and initial tariffs and wanted to be a bit differently in approach. >> not inconsistent to take a

tougher line and threaten the tariffs and want a better outcome. this morning, economists said it ends up producing more gains from trade and that he would fade the trade war concerns in the market, so, again, still much depends on how all the talks progress, and i know that they are trying to figure out how to communicate that to the markets. >> absolutely. the one thing that the larry said, oh, i don't think the trade talk affected the markets, he knows as well as we do, it has because he's been sat here before on days when it was affecting the markets to the downside so -- >> as we said, the selloff started long before the trade war concern was an issue >> sure. >> so there's many - >> plenty into it. >> many causes pick one congress just released mark zuckerberg's prepared testimony ahead of the hearing before the house energy and commerce committee tomorrow facing questions from the senate. we have more with what we'll hear and when we hear from him, kayla. >> reporter: well, kelly, the ceo of facebook is going to be

talking about actions they are taking to fix and right the wrongs after the fact if nothing else, talking about ownership and accountant of the issues, and that's the message that mark zuckerberg is sharing with lawmakers here on capitol hill, a hand of whom he's meeting with today. we're outside senator diane feinstein's office, the ranking member of the judiciary committee where mark went in moments ago. earlier, he met with senator bill nelson, a democrat from florida, where they had a more than one hour meeting. nelson speaking to reporters afterward likely because he's running for office again and said he believes mark zuckerberg understands the gravity of the situation. >> my sense is that he takes is seriously because he knows that there is going to be a hard look at regulation. >> reporter: now, regulation is going to be one of the main topics at this hearing of course, there's been a bill

proposed it's the narrowing scope and not gotten much bipartisan support we'll see where it goes from here meantime, zuckerberg's testimony says he's committed to committing serious manpower and investment to security saying that i've directed our teams to invest so much in security on top of the other investments we're making that it will significantly impact our profitability. to what extent big question we would expect him to detail that and much more tomorrow on the hill guys, back to you. >> okay, thank you very much for that shares of the social media giant are higher ahead of that testimony tomorrow nasdaq is in the tech sector broadly. bringing in jj from ame ameritrade welcome. >> great to be here. >> what are people doing with facebook >> over the last month for most of march, second month in a row, sellers of facebook. i think a lot of the concerns you talked about at the top of the show around what's going to

happen here, people say to me, why do we have these crazy swings in the market well, a lot is tariff talk and facebook on the other end with the cambridge analytics, et cetera interesting thing, though, kelly, last week, after mr. zuckerberg did the press conference, we saw people coming in and be buyers of facebook i think he did what the market needs, calm the children, if you will, and -- >> thought he was one of the children >> not today saw him in the suit, not in a black hooded sweatshirt. >> do you see peggy's column of the weekend? >> i did >> writing about adulthood, and suits to match the seriousness of the occasion. took that 15 tor yal to heart. >> absolutely. with that, though, he was challenged on the call and did a good job one of the reasons we are seeing this craziness, if you will, we're not hearing from the leaders. this week, we get a chance, starting friday, jamie dimon comes out, we don't need preparations for tariffs, that's

good for the market just to hear the ceo's take on what they do going forward and how much preparation they do. >> back to facebook, do you think following that press conference last week that zuckerberg bought a line or reignite it? >> a line drawn underneath the buying at the moment because i expect until friday we have the potential for volatility you know, one of the things we have to keep in mind is we're in a normalized volatility, under 20 is where we are at, just over 20 now this is normal the difference is we're talking 24,000 index with the dow, so 200 moves would -- aren't that out of the question. one of the things that i think retail traders particularly should keep in mind looking at volatility in facebook at the 88% for the year, what do the numbers mean nothing. here's what means something, may 4th, expiration says a normal

move up or down 15.19. over four weeks, if you buy facebook, are you prepared for a 10% move up or down? that's what the absence mark tells you. >> going back to how you said retail trader is selling facebook in the selloff. you expect that, right >> right >> you know, we talk sometimes about how that -- there's a different thing when people are buyers of the market in general on a selloff, but what is notable to you about the fact that it's the retail community that's selling facebook here >> well, i think one of the things is i think people here are selling facebook like they bought it last week for the first time so much of retail has been long. it was, you know, it's been in the top three held stocks last 18 months or so. people have enjoyed a nice run i actually am encouraged by that telling me people are taking some profits and are not in, you know - >> selling -- you know, they are not just jumping in going, oh, it's been fun. >> no, the world's ending, no. what's interesting because on the other end of it, you see them buying some of the lower data stocks, exxon-mobil's of

the world, et cetera and netflix, a surprise to people. they are not giving up, rotating as we see a rotation in the market overall >> out of google too >> google is kind of a, you know, 50/50 if you will. >> talking about is fang broken up if they sell facebook and buying amazon and netflix - >> keep in mind about the fang stocks is they are often expensive too. >> yeah. >> 100 shares there, a lot of money. a lot of the trading partial or option shares because of the pure price points. >> amson and netflix in particular thank you very much. >> great to be here, thanks, guys >> by the way, say hi to a special guest on the way out >> i see that. >> joining us, of course, to discuss his epic victory in a few minute's time, but meantime k ba back to facebook some corporate titans are unharmed, but others, it's been costly

>> as zuckerberg prepares for his grilling tomorrow, we look at testimony in the face of controversy like bp's former ceo, tony hayward, after the massive oil spill in the gulf of mexico >> you are the ceo, shouldn't you not set the tone for the investigation? shouldn't you not say i demand that within a month, we're going to know what happened? i mean, you're really insulting our intelligence >> here's wells fargo john stumpf grilled in 2016 on the bank's fake account scandal. >> have you returned one nickel of the money you earned while the scam was going on? >> and the board will do - >> take that as a no, then >> are you considering resigning? will you willingly give up your own bonuses ahead of the board decision to discuss it will you willingly give up your own bonuses ahead of the board's decision to discuss it are you reconsidering your decision to resign

>> in fact, both were forced to step down in the wake of their testimony. >> some make it out of the capitol unharmed like apple's tim cook here's a headline from 2013. quote, tim cook came to the lion's den capitol hill tuesday prepared to face lawmakers furious that apple avoided paying billions in taxes by the time he walked out, big cats on the senate committee were eating out of his hands >> dimon had success in washington too here's a report from 2012 when he testified on the banks london wales scandal. >> he seemed to solidify his status as washington's favorite banker, dark suit and tie, he had ease and deflected tough questions and fielded softball inquirie inquiries. >> i say, listen, a lot of advise for mr. zuckerberg, but those coming away unskahaved an

those who have not, you have to go further than the outline. i think the thing in mr. zuckerberg's favor here is he woke up to that it seems in recent days and weeks. >> he has everybody helping him prep to make sure he comes across as humble, you know >> right >> mak humble, you know, there's so much that goes into this we know we're watching in a very elaborate show seeing how they do >> indeed. that's tomorrow, 2:15 p.m. onwards, live, of course, on all cnbc platforms, absolutely crucial for facebook, the stock price for zuckerberg and his future all right. we got 45 minutes or so before the close. we are higher by the tune of 335 points slightly off the highs of the day. the dow's higher of the day, it was up 440, but still 1.5% gains

for the dow and nasdaq up furthermore. up next, more on the markets as stocks surge to start the week with us, patrick reed and the green jacket fresh off winning the masters. this is the "closing bell," back in two minutes don't go anywhere. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing

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welcome back to "the closing bell," dow off around about 280 points with the high of the day at 440, but resounding rally up more than 1% for all major indexes. checking individual movers the names leading the dow today are coming up for you. merck, of course, some good news on its treatment drug earlier today, up 6% off the back of that intel up, and jpmorgan chase up, and banks and tech sectors lead the charge higher. nasdaq, big movers for you

there, we got pharma up 4% nasdaq is the outperformer of the big indexes. >> now to the big guest, shall we >> i think we should >> the masters tournament champion, patrick reed earning the green jacket, joining us live at post nine, welcome >> thank you thanks for having me >> congratulations >> appreciate it >> have you slept? >> very little i think i might have got three hours of sleep last night, but, you know, it's just a part of it, and we're so excited, and, you know, glad to be here, and glad to be able to experience it >> still on cloud nine talk us through the final afternoon in particular, because i've read today on some of the interviews you've given, but you have to the checked in on the leader boards throughout and were not aware of spieth and others behind you. >> well, actually, i always, always watch leader boards it's my thing.

i love to know where i'm at at all times, but, you know, i knew i couldn't get caught up in it because, you know, the more you get focused on everything in the outside, it takes away what you try to do, and so i was seeing spieth and, you know, ricky making a charge, playing as well as they were playing, and biggest thing i knew is that as they made birdies, especially spieth, five, six holes ahead, as he made the birdies, i still had a lot of time left to, if i needed to, make a charge or get something done, and, you know, just one of the moments that i felt besides the first tee shot, i felt calm throughout the entire day felt like i was at peace, but, you know, it was just unbelievable moment, and, you know, stepping off the 18th tee, hearing the roar from the green, rickie made the putt for birdie, i had to play the last hole, and finish the tournament right.

i had to go out and make par to win the first major, satisfying and a fun way to finish it off >> how about the president tweeting congratulations, and, by the way, calling out you won years ago at durell and now you're the masters champion. by the way, how do they get the jacket to fit so well? >> a lot of special things done there. >> quick turn around >> it was. >> ended your callaway golf sponsorship last year. >> correct >> we see nike hat >> right >> what other endorsements might be coming your way or how you think about those opportunities? >> biggest thing was i wanted to be different i wanted to try something different this year coming in. i always thought that there's so many great companies out there, especially golf manufacturers and club-wise, and, you know, when you go in the big deals like this, you kind of get stuck on you have to use all of the same equipment

well, you know, i -- it's hard to believe that there's one company that makes 14 perfect clubs and golf balls for every player, you know they all make good ones, but every player, you have to give up something >> are you going to do a club by club sponsorship is that going to happen? >> what's in the bag at the moment >> exactly partnering up with nike and going more of the clothing side, it's freed me up to allow me to use whatever equipment i want. on the equipment side, i'm just out there doing my thing i'm -- >> free-for-all. >> yes, whatever i want to use i'm able to put 14 clubs in a golf bag i feel are the perfect fit for me, and, you know, to do that and come out one of the first majors rs it was, it was t the right one that we took >> when we consider the majors are currently held by americans and fairly young americans as well, is this a new era of golf

for america? >> you want a consolation or something? >> no. are you focused -- >> talking to captain america here >> oh, of course, i thought about it after i played. >> i'm sure. >> it's -- it shows that, you know, the newer generation, the younger guys are getting more comfortable out here, believing in themselves they can come out and win tournaments at an early age, and that, you know, it's not as much about experience as it is self-belief and how hard you work and, you know, just kind of how guys are evolving as players, and, you know, it's good to see because not only are you having young guys winning golf tournaments, but the veterans are coming out playing well, holding their own and winning as well. >> was supposed to be about tiger and mickelson. >> right >> those guys got attention going into the weekend >> they are winning elsewhere this year, and for him to come out and win that golf tournament

and, you know, tiger to come back and play as well as he's been playing, it's great for the game of golf it's great for us, and, you know, me, personally, i know the younger guys we all want a really healthy tiger woods we were not able to play against him and experience that, so, you know, there's nothing better than to see him come back getting to the form he was at, and go out and attack. >> patrick, we will have you ringing the bell, closing bell in a few minute's time, of course, but you've done this before >> you're not ringing it this time, are you? after last time they said, not again. >> don't want me to break anything else. >> we have the video of last time >> oh, man >> you broke the gavel >> i did >> you took it with you and it's been a good luck charm >> oh. >> you break it, and you stole it >> oh, i can't even watch that video. oh we broke the gavel right before, you know, the barclays championship, which is now the northern trust, and i went off

at beth page, won the golf tournament, like, you know what? that's special you know, that's a very important piece to us. it's a very good luck charm. so i carried it around in the suitcase for five, six months with us on the road. that's a good luck charm >> broke it. >> it's broke. all the sudden, they gave me a coin earlier in the day, and that's been in the bag nonstop has not left, still in the bag that's in the car here, and it was there with me in augusta being in this building is good luck for me. >> it's working. >> pick up a few stocks maybe too. your hot hand might continue >> stick to the putting, not the hammer >> all right >> you are damn good at that patrick, honor to have you here on such an important end of weekend for you, patrick reed. >> thank you >> thank you we've got about 35 minutes to go before the close up 1%. slipping a little bit here only up 250 points now on the

dow, but, still, a positive session. still ahead, we have a big jump in markets today, coming off the highs, but a top strategist says it's amateur hour, his words, at the white house as tradear w has headlines whipping the market. stay with us at&t gives you more for your thing. your getting the best but paying way less thing. now get 50% off a smartphone. more for your thing. that's our thing. visit att.com

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welcome back, looking at the 250 point gain on the dow, were up 440 points in the highs of the session today, so a quick start here, better than 1% gains for the major averages still, nasdaq best performer up 1.2% right now. a couple stocks to watch morgan stanley upgraded gm overweight to equal weight, saying, this is interesting, benefits as the dynamic between pickup and truck sales and infrastructure spending is better understood. gm shares up 1% today. today's quote of the day comes from black rock ceo's annual shareholder letter talking about the escalating global retirement crisis and says, quote, we're at the beginning of a seismic shift between 2017-2030. he goes on to say, can want accept a system that exclude so many individuals from the benefits of investing and political leather is not an acceptable excuse leaving millions of americaning iningsd

for retirement >> invest in stocks opposed to various things like bonds, and u.s. poll shows only 54% of americans own stocks the economists, edward wolf, says wealthiest 10% of households own 81% of the total value of the stocks. clearly, this is, therefore, a legitimate criticism on ageing population in the u.s. and whether people are properly prepared for retirement, but, actually, that number, 54% of the population earning stocks is better than the rest of the developed world. >> it is >> it's a problem here and elsewhere. >> it is >> ageing populations is something that all of the developed world have got to battle >> in his self-interest to promote retirement industries, probably the biggest face of it. but, again, something as we reminded the cbo projections about the americans' debt and deficit this afternoon, people preparing for their own retirement alleviate longer term problems >> interesting for nations like

china, the size of the population and working age population there peaked and ageing itself. >> who would have guessed one child left behind worked so poorly >> well, quite it's not -- it's relaxed, but not changing people's nature not seeing the birthrate pick up at all in china. plo markets up 1%. nasdaq leading the charge at 1.2%, and lost .3 in the last hour time for an update, sue? >> reporter: hello, this is what's happening at this hour, everyone president trump will respond to the suspected chemical attack within 24-48 hours earlier, james mattis said that the u.s. is not ruling out military action against syria. >> first thing we have to look at is why a chemical weapon still being used at all.

>> berlin authorities foiled a terrorist attack planned to occur yesterday in the city's half marathon arresting six who allegedly were going to attack runners and spectators with knives a cultural center damaged when a silo fell in the wrong direction after being imploded spectators cheered the demolition, but watches and amazement because it went the wrong way, no injuries thank goodness except to some egos. that is the news update this hour back to you guys wilf >> sue, thank you very much for that, indeed, right in the wrong direction. we have 28 minutes before the close. up a percent from the dow, 1.2% for the nasdaq easing trade war concerns soothing the market today, but companies directly impacted by

tariffs are on edge. we speak to the ceo of a major rv supplier who says steel and alum yum tariffs are a double-whammy for his industry stay with us driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential.

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welcome back, up a percent or so approaching the close, 25 minutes to go. off the highs, in fact, now down -- sorry, up, but less than 1% for the dow and s&p, so we have slipped over the last hour or so, but, still, a decent bounce back from last week back to the closing bell exchange, we have michael, president and portfolio manager at pellman family of funds, and steve and rick santelli at the cme in chicago good afternoon to you all. steve, starting with you in terms of what to expect for earning season, a key debate out there, clearly, the absolute numbers are good, but good enough in a relative sense >> right so this is what most of the bulls on the street are thinking that the analysts have underestimated what the eps impacts is going to be with the at a time wind of tax reform then it just became sort of morphed into a consensus or overly bullish feel on the

street i think it's going to be ultimately a tail wind for the economy, tail wind for eps and the corporations that will report having said that, we chopped a lot of wood. we've done a lot of technical damage problem is, what happens when you get through the first week when you get through the first week of the financials that hit the market and hit the tape, and that's not enough to counter balance whatever tariff issues that we're having, whatever trade concerns we're having. i do believe that all of these things are knee jerk responses to headlines they are seeing and, ultimately, they'll be a buying opportunity, but i still do believe that the markets want to research a little lower levels before it is ultimately the buying opportunity that we're all waiting for. >> rick, i wanted to ask you something further i feel than usual. i was struck by the drop in russia's stock market in response to the sanctions. now, how might that ripple back through here i don't know except that i know it has rippled through global markets before, so we have a nice recovery that's starting to now fade into the close here,

and i mean, how are -- how are you thinking about the risks out there? >> well, you know, it's interesting you bring up russia and its markets because, obviously, the energy business is big in the russian economy. there's a lot of variables there. the one thing that nobody ever talks about, russia's big because of what happened or didn't happen during the election and the investigation of the president when we look at the size of the russian economy, how much business we really do with the russian economy, you know, we're right to focus on china, just to throw that out there, much - >> yeah. >> much more tradeable issue there. as far as the markets and international, i continue to be very impressed i think bob letz said it best today. a lot of the issues we're talking about, especially on trade, they are side effects in everything we take in our society from a medical side has 99% good associated with it, but yet those side effects really

sound quite scary, and i think that's a really great way to look at all of these issues that steve's worried about after the first week of earnings we're all somewhat worried about them, but i think it really is a big positive to see up days after friday, to see us basically circumventing around 24,000, a logical place for the dow, for example, to consolidate as all the issues are viewed by investors, in my opinion, a lot more level headed manner than the media that writes about them >> michael, your view in terms of earnings season kicking off later this week, more positive, perhaps, than steve. >> yeah, you know, to steve's point, i think in the shoesrt term, you get volatility, but long term, remains to be seen whether they understated or overstated the impact. on a net-net basis without differences in business, tax rate cut from 35% to 21% is huge, and that's going to flow

to the bottom line and that's going ton reinvested whether it's in business development, dividends, buybacks, new business purchases, m&a, et cetera so i think the longer term effects there, but in the short term, we had so much volatility, uncertainties, you can see the flattening of the yield curve, whether it's the two to 10s or five to 30s where the investor market is not buying the global growth story yet or the u.s. growth story giving maybe positive upside in a sense not everything is baked in one way and could have an upside surprise, but, you know, given the volatility, i just don't know at this time. i think it's something we watch closely. the other thing is that we had a lot of volatility this year, but the equity indexes are still hovering close to0 so with all the movement around in one direction or the next, we are still sort of in a consolidation phase if you look at the big picture in the last quarter. >> yeah, steve, while you were out, people talked about the levels, 200 day, and when you have sharp selloffs, you look

for how much are we going to gap down and when does selling pressure evade >> when you're in the market, you never forget about the market completely. i saw you guys research lower levels, 2553 is low as you got last week, but february low was 2532 look at the moving average, call it 2594ish around that level that's the first term of support. after that, though, the market really wants to test that february low before it can say we've got that behind us. it's got a test. it's got a hold. there's a hold for a couple multiple days after that >> that's why you feel there's still -- >> called into the show, sold my positions, my biggest positions. i'm still out of the market on those biggest positions. i want to see the way the market flushes out. deals with the first week or so of earnings. >> what happened if -- >> how it absorbs it >> sit outside and doesn't go back to the lows and rushes up >> perfect scenario to me is pay higher than where i sold the

things that's a win situation for me because we're talking about square up 183% at a certain point, you want to buy alibaba. is really the forward facing risks you have with alibaba going away in two weeks? i don't think so >> up 180 points, half the gains that we had about an hour and a half ago, concern for you if we continue to slide? >> yeah. i think we had such an oversold bounce that we have this rally back after friday's action, you have to be concerned with how we end up going in the close today. a weak, squishy close, you worry about facebook tomorrow taking down the rest of fang and china, again, once we hear from the president there. >> yeah. we should show facebook trading as well. justa sense of how that reacts guys, thank you, all >> thanks. >> michael, steve, and rick santelli news alert on the federal budget >> reporter: the cbo director

keith hall warning of the rising risk of a fiscal crisis as national debt is expected to surge over the next decade because of the new tax law, higher federal spending, and higher interest payments wrapped up the press conference telling reporters the bigger the debt, bigger the chance of a fiscal crisis with the concern that the longer congress waits to deal with the problem, the more draconian measures they take to solve it they likely to have step up the pace of interest rate increases, and that will bring real gdp below potential around the years of 2020-2021, so slowing economic growth because of higher and quicker fed rate hikes. they estimated what might happen if the new tax law, tax provisions made permanent. they said that increases debt to

gdp to 105%, a level not seen since the end of world war ii, and already the cbo says interest rate payments are set to be a larger portion of federal spending than just about everything else. larger portion than discretionary spending and defense spending, and that's unsustainable trajectory guys, back to you. >> no wonder they talk about rescission now and tearing back the spending and the big bill. thank you. >> an issue people are talking about slightly more, but, clearly, not worried about it today, but are in the future it's certainly another risk for the markets. as we get closer to the periods, minutes, we got 17 minutes before the close, and we have lost quite a lot of the impetus of the rally we are now up just 170 points on the dow, having been up over 400 at one point, and there's the looks of the names that are still leading comfortably up about 6% there as monsanto after they got approval notification,

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closing bell, dow up as much as 440 points, hanging on to a gang of 187, 1% higher for the nasdaq, the outperformer today >> a couple stocks we watch as well as we go into the close first deutsche bank naming the new ceo, xaving. i had to ask how to pronounce that he's been the bank's co-deputy ceo recently, and people pointing out the fact not only is he going out, but the other co-deputy ceo, former ceo going out as well, and he had been head of the investment bank, head of the retail bank forward, and whether that means a change in the direction >> that's the thing, change in the direction or signal they rain in the ambitions of being a

huge bank presence to german focused retail bank, right for acquisition? >> i think what is clear here, not just the fact that he was overlooked, but that they departed it's a real blow to morale to bankers there not shouting and screaming they have a lot of capital put into the business. that side, some of the bulls in the stock argued today that he's gone through a lot of the painful restructuring already, and if they can see an overall turn around in their revenues, they should have much more operating leverage going forward cutting costs significantly. there's bulls there as well, but a tough period, and coming in after a tough year said around here tech is the new wall street and juxtaposition of the stories show that nicely deutsche reigning in the horns, privacy groups filed a complaint to the ftc claiming youtube violates child protection laws by collecting data on children younger than 13.

they said they have not received the complaint and protecting families is a top priority this is the reminder it's not just facebook, but the model, and, frankly, all of tech, again, tech is the new wall street >> absolutely. that focus on privacy is not just on facebook and it's not just on facebook on capitol hill tomorrow, but hearings as well continue in the u.k., parliament, and europe it's the eye of the storm for politicians everywhere >> what do they say? the most significant corporate hearings since ten years ago when it was the financial leaders heading to washington trying to explain what was happening with their firms >> alphabet up 1.5%. hanging on to a gain for them today, but not by much, dow up 150 points now david rosenberg joining us now, welcome to you >> thanks, kelly >> is this the cbo's fault hay had a scary sounding set of numbers about the trajectory of the debt and deficits in the country. that have anything to do with

it, you think? >> i don't think so. you'd see the bond market blowing up if there was a big concern. i think that most wall street economists and analysts pinned in trillion dollar deficits for the next several years, and so not a really big surprise from that perspective anyway. >> more broadly, dave, the data, not just in the u.s., but globely, that idea of global lly growth going forward falling apart? something that played into negativity in the markets? >> partially, sure the market peaked on january 26th, long before all the stuff we heard about china, and i think that, look, i think that we went into the year with a lot of hopes that the u.s. economy was going to be an escape philosop philosophy i have numbers barely up 1.5% for the first quarter. people write it you have first quarter. i'm not getting a sense looking at the data there's a lot of imptous in the u.s. economy. looking at europe, the numbers in germany rolled over big time.

remember - >> hang on a second. we have a mark zuckerberg spotting in washington kayla is on capitol hill, kayla? >> reporter: hi, kelly, we just saw mark zuckerberg leave feinstein's office an hour and a half after he first walked in there just after 2:00. unclear what they discussed. unclear whether the senator will make any comments about the meeting with zuckerberg before tomorrow's joint hearing there's 44 senators on two committees, four minutes a piece. it's close to a three hour hearing for mark zuckerberg. we'll see what he says and if there's color on what he told lawmakers here on the hill ahead of that, kelly >> okay. he looks like he hates this. >> i was about to say that i agree. he looks not comfortable at all. that said, i think that -- we talked about it earlier, the suit makes a world of difference might be a silly point makes an effort.

>> you got to make the effort. >> he looks like an uncomfortable -- as anyone would be with the cameras in your face >> see if he leaves the suit on from now on, that says more. checking back in with you more, whether he talks in front of cameras, leaving the meeting with his own home senator diane feinstein. 22 hours to goch all over that tomorrow on "power lunch" and "closing bell," david, in terms of comments, the broad markets, it was not just seeing tech selloff, but softening data around the world to explain the negativity. >> it's a combination of things. i think, look, kelly was right i don't think it's about the cbo today, but we're in a period of heightened uncertainty this is the flip of what we saw last year, last year, tremendous certainty -- >> no -- >> tremendous certainty. >> one crazy headline after the other and markets shrugged it off. different this year. >> sometimes you sit back and let the markets dictate what's going on

you don't get a year where the vix averages 11 without, you know, with there being chaos the markets are pricing in tax cuts after tax cuts, deregulation was helping, and so you have a situation where half the rally last year was not all about earnings coming into this year, and, look, it was not just about tax reform tax cuts with the 4% unemployment rate at the peak of the cycle, fat tightening on top of the spending increase so we have a new fiscal policy, we have a new situation in terms of trade policy, and i think that this is really important you know, during the bull market, all you hear about is don't fight the fed, don't fight the fed. sorry, in a bear market, recession, don't fight the fed, buy the market how come i hear nobody, don't fite the fed in the other direction. what's important is -- >> what do you mean by that? saying the fed is tightening, so the trend is that disrupts the market >> what's interesting is on friday, the worst point of the day on friday at 2:39 p.m. when the market hit the intra-day low was when jay powell was talking,

and i had somebody say to me, doesn't he own a bloomberg terminal yeah, he does. he was looking at it zip my mouth going forward that's exactly 100%, is that the markets? known for the decades, but i think he's putting the fed put aside. i don't think that he's going to be cutting interest rates and market's down 10%-20%. key difference is fed policy people that thought he was going to be a janet yellen clone are going to be severely disappointed >> should the dollar react more, then >> best you'll see from the dollar is it carved out a low. the dollar last year down 10%. flipside to europe, europe's paying the price from a 10% appreciation on the euro look at the numbers for manufacturing and german manufacturing and so forth a quarter of the earnings growth in the united states last year came from the appreciating dlei

dollar that's over now. they carved out a bottom call me bullish, but that's restraining. there's cross currents going on. it's interesting to me as well is normally you get corrections in the target, the volatility, you get bond yields melting. this is the first time we had volatility and angst in the stock market while, again, part of that is the fed and part of that is there's still this inflation worry that's not left the market yet >> david, thank you so much. >> thank you >> dave rosenberg, the chief economist and strategist on the phone now, russ from blackrock, we wanted to ask you about the market moves look, i mean, we're up 120 points now, 300 point drop from the highs today, and whether it's fed policy, whether it's trade issues what do you think is weighing on the markets here >> caller: well, nothing changed from friday. you know, we had positive news over the weekend there's some comments from officials that are going to try to reach and negotiate a settlement on trade, but there's

no real news that we get you to aggressively buy today other than looking for bar gins that were not there a week ago. >> yeah. at the same time, russ, you know, to have the volatility at 21 as we are reminded is not that different from the historical average, but different from last year, so can you be comfortable with some of the gauges does it have to, you know, prompt such concern? >> caller: here's where i think the problem is, kelly. it's not that the volatility is elevated, but evaluations are elevated they are linked. you see in a post-crisis world, there's a much tighter relationship between valuation, what investors pay for a dollar of earnings in volatility. the act to market the earnings, that's more challenged in an environment where the vix is at 25 rather than a 10 where it was back in january. >> sure. it is interesting. we were just talking about the dollar it's weak. the u.s. dollar today dropping a quarter point, but that's not

helping stocks dow up 77 points s&p hanging on to around an 11 point gain, russ, how important is the testimony tomorrow coming back to the central place that trading technology names like facebook have had? >> caller: well, i think it's important only to the extent that people, look, have been scared off of tech for a variety of reasons, but, clearly, the concern about whether or not they are going to deal with more regulation is one of them so to the extent this reenforces that concern that, look, now it's tech's turn to be regulated, that weighs on a sector that has been one of the key leaders for the last year, year and a half >> all right russ, thank you for joining us russ there weighing in on the markets, dow up 77 wilf >> kelly, yes, indeed, two and a half minutes until the close, session lows, and sinking, in fact, 60 points now only of gains for the dow. we opened above 100.

we rallied, 440 the high of the day since 2:00 p.m., a steady selloff. we are up 57 points now on the dow. let's have a look at the intra-day chart for you of the s&p. you can see that exact story i just told you, that we hit the peak at 2:00 p.m., all pretty then, but we are selling off and slipping notably into the close. nasdaq higher than the others, but just 45 points for the dow oil, interestingly, a big jump today, up 2% or so having slid about 2% last week and was pretty soft at the end of the week as we flip to the sectors, you'll see that kind of thing playing out throughout most of the rally today. it was financials and tech that led us higher, but we really slipped significantly as i said in the last couple hours tech is still higher we got breaking news for you, though, sue has it for us. >> reporter: i do. thank you very much, this is according to the "new york times," the fbi today raided the office of president trump's long

time personal lawyer michael cohen, robertedly, according to the times, seizing records relating to topics including reported payments to a pornographic film actress. this would be one of the reasons why we saw volatility in the latter part of today's trading session. they obtained the search warrant after receiving a referral from the special counsel robert s.mueller, according to the lawyer calling the search completely inappropriate and unnecessary. back to you, wilfred >> sue, thank you very much for that, 45 seconds left of trade, at session lows, bob pisani with me it's not that story that's selling off the last two hours >> that was not widely reported and did not hear anything on the traders' desks on this market close orders north of a billion dollars after 230. that was a factor. fang stocks fell amazon went negative we had a great day for the fang

stocks amazon in the red right now, and, of course, facebook all the fang stocks drooped after 2:30 >> there's the bell, up 0.3%, having been up at 1.8 at the peak of the day. ringing the bell at the nyse at the nasdaq is texas governor greg abbott, up 45 points on the dow, kelly >> i'm going back to the headline first welcome to the "closing bell," everybody, i'm kelly evans, crazy close on wall street, up 440 points at the highs, now up just 48 on the bell here we hung on to some gains, but barely russell up just a point. see how it settles out here. the s&p up just 8 to 2613 on the close, a third of a percent, and nasdaq still outperformer up half a percent to 6950 the dow closing around 23980,

still below 24,000 there the russell at 1514. merck with a 5% gain, and general electric, worst performer down 2%. s&p, leucadia up there, and lowe's the worst performer welcome back, michael santoli. >> i don't think i missed anything >> and the chief strategist, mike, seriously, it was -- there were days it felt like disaster and days feeling all clear, and today is the perfect embodiment, all clear in the middle of the day to be completely erased and reporting there's an fbi raid in trump tower right now for trump's personal lawyer. as headlines crossed that we gave up the rest of the 100

point rally. >> pattern is when we get the headlines on the mueller investigation, moving the ball in that direction, there's a reflex pullback in the markets now, the timing of the reports suggest that reflex is all that we got a chance to see, is that kind of step back, let the market come in, and then figure out in there's more substance to it with legs we're in the moment right now, but even before this all happened, it showed you that there was not a lot of day-to-day momentum, right 2% selloff on friday, setting up for something ugly on monday, we shoot higher by 1.75% by midday. >> there was no new real headlines. of course, you had the trump white house, we had larry kudlow, steve over the weekend calming people down about there's not a trade war and so forth, but, you know, mike - >> it's like when you are within this range and a little bit above the lows, the market is just free to knock around almost at will within that. >> yes

>> also, you heard it turned negative on the bell there with facebook's testimony coming up tomorrow, so is this market just taking a lot of punches? >> not a lot of conviction out there. a close like this, you know, we like to say, you know, professionals are selling, money's out, and there's an issue here noticing even at the highs today, not back to the highs from friday, and friday, we had a high, plummeted 70 handles, and that's problematic the action is problematic, mechanical both ways, updays that go up and slides down like today, and we can blame michael and amazon, facebook and the zuckerberg in front of congress. we have president xi of china speaking at 9:00 tonight what will he say on trade and yuan and everything else a lot of people are nervous and action in and of itself is not bullish here >> great point thinking through as well, what's on the market's mind when the headlines come across about the issues amongst, you know, whether it's michael cohen or the president, himself, is the

concern, look, we already did the tax cuts, but it raises the specter and questions about the rest of the presidency >> the market is in that mode of feeling like oncoming headlines have a little bit more risk than reward that may not prove out to be the case if you look over a multimonth period, but right now, there's a couple inflatio reports coming in the next couple days as well as president xi's speech as well as whatever's going to come of these washington headlines i do think the market is a little bit back on its heels when it comes to any other news. >> paul, one of the reports is china could weaken currency as part of the back and forth over trade. you know, how much a concern could something like that be >> well, i mean, you saw what happened in 2015 when that happened that was not good for the markets, but i think overall, this ongoing -- these chinese -- china trade warheadlines and tweets are more noise. most of the declines were well

before the first announcement on march 1st. overall lousy tape as michael said, hard to justify becoming aggressive when you step in in a potential pitfall of a tweet or new headline coming across. it's a down trend in the s&p 500 of the january highs and last hour selling we saw is relentless half the declines in january's high came in the last hour of trade. selling into the close on a daily basis. >> huh >> the market lesson learned, and paul made a reference to this, august 2015, china devalued their currency, and we had this crazy move in the fx markets followed by crazy moves in the targets what we found overtime when there's a crazy move, taught in statistics classes and students in the markets, these are mutually exclusive independent happenings they are not they cluster together. one thing happens to the other if there's a move to devalue a currency, it affects the other

kurp currencies and bigger risks that affect other things and in crash mode when one big thing happens. that's the big concern here. >> this is a tricky thing, but if they wanted to devalue the curren currency, don't they have to buy treasuries >> look -- >> punch line, right >> in august of 2015, you know what didn't proceed devaluation? people saying china is going to devaluate. >> no, no, out of nowhere. >> pull it out of the closet as a scary thing, and, yes, in theory, could happen, but mechanically it's not convenient >> a big surprise, emblematic, they need liquidity because they have an issue at home. >> kelly makes a good point, though what's he going to do to treasuries what if the currency devaluation triggers a flow of funds and ten-year note goes down to 2%. you don't think that hurts somebody funds would blow up and never hear the end of it, affecting stocks, commodities, and everything >> i don't make light of it, and

ironic, paul, weigh in on it, concern for weeks is china dumping u.s. treasuries, so point is, simply, you know, if they want to weaken the currency, they have to do so by doing quite the opposite would be other ways mechanically to make it happen and draw bone it >> i think what you're looking back, treasuries here too, the fed, which is intent on hiking rates, all signs, three to four hikes this year, and 10-year yield stopped going up, and economic data stalls out in the u.s. and weakening across the world. that causes the curve to flatten. the last press conference powell suggested the yield curve is not as important as an indicator as it's been in the past, but in a situation where the fed or market - >> heard that before, by the way. >> right and when you get in a situation where the market thinks that the fed doesn't mind the yield curve, that raises concerns because as even the fed said throughout the history that the yield curve is the single best

predictor in recession, and when it inverts, you see recession follow suit. >> last time around, 2005-2007 while the same thing happened, there were multiple theories going around to explain it away, and it did -- it was a precursor. >> right >> savings glut and the rest of it i do think, though, the series of questions taking up right here reflects the market's mind set now. it seems like there's a lot of ways to lose seems like things come from multiple directions that keep the tape fragile, so may or may not be true, but it's a switch in mind set from january, what it was, nothing could go wrong, and ultimately, we've taken sentiment and positioning to a defensive place to where if the news flow breaks right, lows could potentially hold, and you could be okay. >> you know, that being said, i'm leaning bullish here i'm not maximum bullish or pounding the table to buy stocks, but leaning long tech and playing from the long side days like friday, buy large caps

you like, mornings like today, trim off, scalp a little bit, but overall, bias can be wrong going into earnings. >> concerned about regulation? >> a lot of things like trade and all the market dysfunction we have. >> it feels like regulation is the obvious next step on facebook just being an accepted -- >> i think we're going to hear a lot about it ultimately >> microsoft example from the early 2000s. >> okay. >> now it's fine, but for a couple years there, traded horribly is that a fair analogy >> i'm not sure it is. it's a different world now there's hiccups, but is this the end of facebook? people giving up on it we hear about it i predict their revenue stream has hiccups, but all the companies, i'm not concerned long term. remember, after the 2016 presidential election, everyone was concerned about amazon even with the recent losses, still 80% in the stock sold after that? i don't think so trade around it. be tactical and need not to

panic. >> okay. latest on the fbi raid at trump power, sue herera has it >> confirming the fbi did raid the offices of president trump's long time lawyer, michael cohen. seizing records related to several topics including payments to a pornographic film actre actress. federal prosecutors in manhattan obtained the search warrant after receiving a referral from robert mueller, the special counsel. mr. cohen's lawyer called the search inappropriate and unnecessary. eamon reached out to the white house for comment. he asked sarah huckabee sanders about this report, and said the white house will have no comment. again, this does highlight the fact that we do have movement on this particular issue with the fbi now raiding the officer of president trump's long time personal lawyer michael cohen,

seizing records. now, whether or not those records will be able to be looked at immediately or not remains to be seen because attorney-client privilege keeps records sealed that's the second leg of this, kelly. we're working on that part of it, back to you. >> sue, thank you very much. the point we closed the market right when the market was processing this information so we didn't have a chance to think through it, but will it put people back from the all-clear mind set or, no, it's just another headline >> we have to ask ourselves, what's it mean we're dealing with the stormy dames issue, can you believe we're talking about this by the way, it's a bump in the road the mueller investigation, this, every time, like the john oliver joke, oh, we got him, no guys on wall street get the joke, and, oh, they got it,

doing the john oliver routine, he's very funny, but focus on what's important november november, mid-term elections this weighs on the republican party. what are they going to do about it to hold on to the senate and house. >> yeah. >> a lot saying they lose both what happens the answer is it's the economy, stupid -- not you, just the general -- that's the point hear about stimulus and maybe they put their foot off, and facebook and amazon, you know, what are we doing here what's going on here i'll say it, money talks >> bipartisan issue. >> we'll see >> there's the latest pinatta. more from sue herera sue? >> yes, indeed, kelly. we have more complete statement by steven yan, mr. cohen's attorney as we said, he called these search warrants completely inappropriate and unnecessary. he goes on to say it resulted in the unnecessary seizure of

protected attorney-client communications between a lawyer and his client these government tactics are wrong because mr. cohen has cooperated completely with all government entities including providing thousands of non-privileged documents to the congress and sitting for depositions under oath obviously, mr. ryan is pushing back in favor of his client, mr. cohen, so, kelly, continues to unfold, but nonetheless it was a raid earlier this afternoon. back to you. >> sue, thank you. the markets learned of that just in the final minutes of trade there. closed with a 46 gain, were at 440 at the highs the cbo outlook has been released, and we have the scary details. >> reporter: kelly, the cbo estimating the national debt will nearly equal the country's total economic output by the year 2028. cbo director keith hall told

reporters the risk of a fiscal crisis is rising >> the bigger the debt, the bigger the chances of a fiscal crisis with respect to time, one of the most important things about the timing is when do you fix something like this? the longer you wait, the more draconian measures have to be to fix the problem. >> reporter: new tax law alone is expected to add $1.9 trillion to the federal deficit over the next ten years, and that's even after factoring faster economic growth the cbo projected that growth would reach 3.3% this year, up from the previous forecasts of 2%, but that is going to force the feds to raise rates perhaps more quickly and bring real gdp below potential around the years 2020 through 2021. the cbo also tried to analyze what would happen if the tax

cuts were made permanent and spending levels were maintained, and in that scenario, debt gdp reaches 105%, a level not seen since the end of world war ii. back to you. >> thank you mike, we talked about whether the headlines spooked the market, and dave rosenberg said if they were concerned about this, you would see interest rates going up. it's not the case. >> yeah, honestly, the whole way the estimates are brought about is these linnier extrapolations -- >> years and years - >> not working inin ining vari. we knew the story, a revenue short fall, not predicting recession in ten years, all this stuff -- >> by the way, this is the rosy scenario a recession, forget it, out the window, but do you think there's anything in here for people to seize on other than going back to the midterms and whether, look, they are trying to do rescission now to take funds out of the huge spending bill passed, and sense in the public that, wait a minute, it's not

the democrats or gop, who takes this seriously >> i'm confident that in 2028 president kardashian takes care of things, but for now, i don't think this is an issue >> not now >> which kardashian? >> that's the fun part that's not an issue right now. the deficit hawks lost the graveyards of bond vigilantes, and i'm sorry, the market says it does not matter does it at some point? high probability it will, but not now. >> paul, last word >> i think we have a hard enough time predicting what the economy does this quarter, so what we look at ten and five years out is just all nothing more than a guess. i mean, this is no news that the market has not already known >> any predictions on earnings to leave us with >> you know, i think last quarter earnings season saw the most optimism on the part of analysts in at least ten years, which is historically optimism

heading into earning season is bad for equities in earnings season all that retreated heading into this earnings season, and we're seeing actually the pace of negative revisions slightly outweigh positive revisions. could be a nice distraction from all the other stuff we deal with right now. >> all right we shall see thank you, all, very much. talking about quite a close there, and we'll continue to follow the headlines markets rattled bout the trade war, too, speaking with the ceo about what the tariffs mean for his bottom line when we come right back you know what's awesome? gig-speed internet.

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welcome back, wild street on wall street, giving back big gains in the final hour, closing up 46 there, just the latest volatility for the market, hit by fears of a trade war between the u.s. and china, and national economic counsel director larry kudlow was on "squawk on the street" this morning saying the president's move to put tariffs on the country has been a long time coming. >> please don't blame trump, but china, jimmy china has been the problem mr. trump is involving himself and reacting the problem on behalf of american industries, but china started this years ago. you know that. i know that. we got to bring them into the,

you know, the great arena of nations, but they've got to behave themselves, so i think this is a good exercise that will lead to better economic growth >> joining us now to talk more about this is jason, who is ceo of lipper components, jason, welcome to the program >> thanks for manager me on. >> so you guys, by the way, in elkhart there, you are rock stars. front page of "wall street journal" stories, everyone's talking about the job boom there, and it ail is a big turn around from the recession, but are you now returning into a big hurdle with steel and aluminum tariffs? >> well, yeah. i mean, it wasn't something we intended coming into the new year or what we looked at, but, you know, through the years, we've got volatile commodities and they go up and they go down, and, you know, most important part for our business and other businesses and manufacturing is we just have to be good another adapting to those changes because most of the time they are quick and unpredictable.

>> jason, you sound like, oh, business as usual, a couple tariffs here, steel, aluminum, really not a big deal for you guys or something consequential? what dollar amount of your business is at stake here from higher prices? >> sure. we, so, yeah, we buy 300,000 pounds of steel every year, 50,000 pounds of aluminum every year and buy 100% domestic, so, you know, the problem we faced with along with other suppliers in the steel industry is the industries that use steel is that all the u.s. steel guys are now more competitive with foreign steel as a result of the tarif tariffs, so mar ggins and price go up sharply over four months we have to deal with it, get creative, and find ways to mitigate the costs >> jason, as you look at the various scenarios, obviously, we don't know what the policy mix is going to look like, ultimately, but is it just really along the commodity cost front that you have concerns, do you think there's going to be maybe a time when you have to worry about in-market demand or

what the export market looks like for various products? gr y >> the hot topic is steel and aluminum, and steel more because it's, you know, got hit with a bigger tariff, so, you know, i think all of us that use steel, we're just exploring options trying to get creative and work with the customers to try to ultimately, you know, still provide value product back to the consumers of our rvs in this case in a price point that meets expectations >> jason, this being 2018, a year when the economy is doing very well, and it sounds like, you know, the job situation, the customer demand is strong. does it make it easier to absorb higher prices? what if this happened when the economy was weakening? could you handle it then?tougher you're right volumes where they are at and to put numbers to it, our projections this year are 540,000 units for the rv industry, a record year for us,

hitting 505,000 units for us last year, a record, so when volume is on your side, easier to absorb costs, and when these things happen, frankly, we eat some of it and get creative and mitigate costs other ways and not pass on to the end consumer ultimately buying rv products. >> all right last question to you, if you don't mind us peeking under the hood what are creative ways to absorb 25% increases in steel prices, for example? >> yeah, so, you know, we had a lot of the companies using a lot of lead tactics right now, leading on the business, 65 divisions with 11,000 employees, so that scale gives us opportunity to continue to work on reductions, sourcing strategies at play, and then there's recontenting the rv products themselves. so that we can deliver tomorrow a product that, you know, meets the same price point as yesterday with inflationary pressure meet and potatoes and bread and

butter of the business is an 18-25,000 travel trailer pulling behind a truck or suv. we're not talking about these, you know, half a million dollar motor homes that everyone thinks of when they think of the rv business >> i've seen a few of them good to know that's not what i should be thinking about so recontenting means tweaking what's on the inside, then >> yeah, inside, outside, and trying to, you know, provide changes to the rvs through new technology or new components or maybe using some different kpoens thkpoe components at lower cost so we don't have to see inflation their pressure hit the rv consumer too hard. >> jason, thank you for complaining the impact for us and fascinating how it plays out. >> thank you so much for having me on the show >> jason lipert from elkhart, indiana. dow gave back all gains late in the session. up next, how investors should be trading amid volatility as we

head to break. here's a look the the winners in the tech sector today. they were not big. the broadcom 2.5% is the highest you get. we'll be right back. ly track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

welcome back, on friday, dow plunged more than 700 points at the lows, and climbed more than 400 points at the today's session with a gain of 46; how do you gauge market's moves and how to invest in them?

joining us, the founder another ucx. welcome. what are your picks now and relate it back to the vehicle timty we are seeing. -- volatility we are seeing >> emotional tape provides opportunity, look at a name like workday, look for them to continue to work in 2018 look at like a chubb or visa, visa flat, but chubb a discount in the wake of the hurricanes. volatili volatility, it's amazing, kelly. we see in all actuality, you want to buy the stocks an hour after president trump goes on a tweet storm. then the former colleague, and friend, larry kudlow, stabilizes markets. that's been the trade. that emotion, trying to capture, use this to capture, and find names they want to own and wait for the opportunity. it's coming. >> jack, there's the tactical side as jeff ran through about,

you know, ways you might be avos this tell you about the climate we're in and whether there's inflexion going on or prolonged correction like we've been assuming for a while >> it's the volatility we all have been expecting. last year, it was an aberration, you know, low volatility experienced last year was something that nobody expected this is probably making up a little bit for that. now, having said that, remember, you know, these extreme moves we're seeing are because markets are at extreme levels. people forget that i think we got to start thinking of them in percentage terms rather than point terms. dollar volatility is scary when the markets break, keep in mind that these are the breaks we've been waiting for everyone's been talking about that 10%, 15% pullback to put money to work, and guess what, they got it. nothing has changed as far as tax reform goes or the fact

we'll bring home $8 trillion in repatriation all of that is still fundamentally very, very bullish in stocks. all we've done is taken the multiples out and in which case, you know, you find the value >> well, jeff, going back to your pair trade, which sounds like it's now buy an hour after the trump tweet, sell off the larry kudlow comments. buy after the trump lawyer's fbi raid and sell on the next day? >> well, you know, i said that tongue in cheek, kelly, no doubt about that, but seeing motion, and to jack's point, what's more important, look at the technicals ever since mnuchin talked about the dollar, it's a technical trade. it's substantially underneath the 50-day moving average, but above the 280 day moving average. they call that to test the s&p 500, however, as long as you see kudlow stabilizing sentiment and

anxiety after the president does something, stay longer than most people think >> all right we'll see, you know, larry's holding up the markets, jeff that's no small task no small task. >> he is, kelly. larry's a strong human being, but it's remarkable to see the way he comes in, and so eloquent and articulate and talking about president trump and not so much as the current status as we've seen decades of bad deals, so all the motion, it's a negotiation. you know, jack and i talked about this it's a negotiation >> it's the kudlow put >> exactly right >> and the fact of the matter is that he's that stabilizing force in president trump's ear, and he's that free market guy that we've all come to learn and love, and, by the way, the other thing that larry kudlow says is that earnings are the life blood of the market and they'll start in another couple days >> mother's milk >> that's true profits profit

thank you very much. look how we finished the day with that said, for jack's sake, percentages, dow up .2%, and th russell, well, only a point higher time for the cnbc news update with sue herera. sue? >> thank you this is what's happening a prosecutor says bill cosby paid nearly $3.4 million to the woman that he's charged with sexually assaulting at his suburban philadelphia home the cost paid to constand in a 2006 civil settlement had been confidential, but a judge ruled both sides could discuss it in the retrial. at least nine students killed when a bus fell into a 200 feet deep gorge in northern india. the driver and two teachers were reportedly killed in the accident the children were on the way home from a local school here at home, a charter bus has been towed from the scene that struck an overpass carrying

dozens of high school students returning from a spring break trip to europe police say the driver did not realize the overpass was too low for the bus, and, therefore, did not brake before hitting the overpass, two girls were hospitalized with serious injuries and on a happier note, senator tammy duckworth welcoming a baby girl, my lee, into the world, making her the first u.s. senator to give birth while in office and says in a statement that she and her family could not be happier. she and her husband also have a 3-year-old daughter as well. that is the news update this hour kelly, back indicadowntown to y. >> something about maternity leave in there she can't take it because she has to be present for the vote said, like, there's no way of dealing with this because it's never happened before. >> right it never happened before so no protocol is in place, but i bet there will be now. >> yeah. oh i would imagine. thank you, sue

>> you got it. >> sue herera. banks lead stocks higher, selling off into the close, and up next, fast money traders tell us whether they think financials can lead the next leg of the market rally anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally.

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facebook's suspending data analytics firm from the platform after cnbc told facebook the firm used tactics similar to cambridge analytica. >> we did just see mark zuckerberg, ceo of facebook, entering the office of senator bill nelson, one of the lawmakers he's meeting with today on capitol hill ahead of multiple days of testimony china's foreign min city said the u.s. is to blame for trade friction and it's impossible for the negotiations to take place under current conditions flood watch. >> i don't like blanket tariffs, you all know that, but i talked for years about how china is getting away with stuff they shouldn't get away with. so this president has backbone, right, others didn't, and he's raising the issue. >> the trade deals are horrible. our country is going to be much stronger when this is through. >> big rally time on wall street if this holds, this will be the 11th time in 12 sessions that

the dow has moved 200 points or more up or down. crazy close on wall street, up 440 points at the highs, up only 48 on the bell here, the dow closing around 23980 so still below 24,000 there >> but earnings are on the way, bank earnings in particular this week, blackrock on thursday. friday, we get jpmorgan, citi and wells fargo, they could jolt the market out of the rut. joining us, fast money traders are here to discuss. welcome to you both. guy, starting with you in the broader context of, you know, can financials lead the next leg of the rally and blah, blah, blah, but it's also going to be looked to as a bellweather for earnings season. a lot hangs on jp, don't you think? >> 100%. people probably agrees with us, the earnings are fine, have been fine now for the last couple years. i think people have come to grips with the fact that the banks seem to have some tail winds and some surprises, let's

put it this way, in their quiver, and for me, it's not about price to earnings, but price to book, and if you look at a jp morgan, for example, at the peak, trading close to three times, trough, one time book, but i would suggest banks deserve to be between 1.7 and 1.9 times price to book, and if that happens, you get stocks that are significantly higher than they are now. >> okay. pete >> i agree as a matter of fact, names on the list, it's not just jpmorgan, but a citi and bank of america. a lot of names more than just the banks, kelly, it's about earnings. see that shift from everything being on the twitter world and everything elsewhere people twam are focusing on the facts, the fundsmentals, and what's going on in the economy as opposed to the back and forth and tariff talk and everything that's dominated for the last six or seven days >> do you think it breaks through? do you think earnings can penetrate all of that? >> i think the setup into

earnings is actually interesting this time because in the past several quarters, market ran up into earnings season, and then during the reporting, you had a lot of sell the news instinct and churning in the overall indexes as most of the earnings were good. this time, you are more near the lows than the highs going into earnings andfixation is on macro. maybe. >> i don't know that banks get the pull that's been cast by all the stories pete talked about, but i will submit bank earnings are going to surprise people to the upside how the stocks react to that is anybody's guess. >> yep >> all right guys, thank you. >> by the way, hold on, do you have us? you know what we are doing again? bob pisani clothes we got the bob >> it's a good look, very slimming >> slimming, right >> anyway, be sure to -- thank you, guys -- do the whole show that way." fast money" in 20 minutes at

5:00 p.m. eastern time stick around for that. today's session, seeing gains all day, a check on the big movers next, and before we go to break, here's a look at the biggest decliners in the dow today, ge at the bottom down nearly 2%. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp

kevin, meet yourkeviner. kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. welcome back the industrials were a leadership group they are lagging today let's turn to phil lebeau to recap there. phil >> kelly, leading earlier in the day, but as you look at the larger industrials, you'll see

that with the exception of caterpillar, most of the industrials gave back what gains they had through, i'd say, 75% of the day, and then in the last hour or so, they all start the giving it away as well as the rest of the market one reason industrials were up earlier in the day because of the cbo report on expectation of growth in the rest of the year following the passage of the tax law. that expectation according to the congressional budget office is that growth is going to be, oh, somewhere up about 3.3% through the remainder of the year looking at the dow jones industrial average, keep in mind, the industrials, as we've seen the large gains over the last, you know, 7-10 days, whenever the stocks, the market has been up substantially, kelly, the industrials have been the leading group, but, today, they gave back a lot of what they had earlier in the session. >> yeah. only caterpillar staying in the green, phil, for now, thank you. still to come, airlines down 5% over the past month, but new

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welcome back, three big stories reporters are following today, brian sullivan in the port of charleston in south carolina with the potential impact chinese tariffs could have at that shipping hub, and phil lebeau has surprising airline information, and what to expect on capitol hill tomorrow. kayla, less than 24 hours to go now, let's start with you. >> reporter: kelly, facebook's mark zuckerberg is beginning the apology tour on capitol hill

with meetings to introduce himself to the top members of the committees on each side of the aisle. he just left the office of senator john thune from south dakota which is where we are now. headed to senator chuck grassley's office, chairman of the judiciary committee. he's been basically fielding questions from these lawmakers about what he's planning to say tomorrow, what the company's been going through, and what it plans to do going forward. senator diane feinstein of california, he met with her earlier today and she previously said weeks ago when the analytical scan da first broke that if facebook cannot police its own platform, it needs to be regulated. that is going to be something that zuckerberg is going to be asked often about tomorrow and wednesday during these hearings on capitol hill, but he's trying to establish a personal relationship with these lawmakers first. >> is that normal, kayla are we just focusing on, you know, there were news headlines, zuckerberg reportedly in this office meeting with this -- is

this a normal part of the process when any ceo is about to testify? >> reporter: well, regardless of whether it's a ceo, kelly, i mean, it is typical for a person of interest or vip on capitol hill many of the people who have been testifying testifying in front of the senate intelligence and house intelligence committees on the russia probe, those people are followed around with hoards of reporters and cameras every time they go in i think what's interesting for zuckerberg, he is an interesting entity many ceos make themselves available to their members of congress frequently. they come here often it's a regular trip. they cycle through washington. that's just not something zuckerberg has done traditionally. so that's why he maybe felt he needed to is that right this week with that. >> we get these headlines mark zuckerberg is in this office, and i don't know if we're supposed to read between the lines behalf that implies about who he is meeting with and what kind of information. >> i don't know about

specifically who he is meeting with, but just the effort. the fact that clearly they've decided that it's no longer about oh, the nuances of we did this, we didn't do that. it's going to be kind of a confessional exercise, right tomorrow is going to be a lot of apology, and both sides are going to ask for that repeatedly probably so the preparation just to do that is i think is almost the news more than the substance. >> kayla, thank you for now. meanwhile, the markets are rattled by the potential threat of a trade war with china, of course it could have big implications for the port of charleston that's why brian sullivan is down there taking a look at that brian? >> yeah, kelly, tariff is a four-letter word down here let's just put it that way obviously the growth here in this region in savannah as well, jacksonville, florida, has been amazing. and when you hear the numbers around trade, i didn't believe them $4.6 billion in total or trillion in economic activity. 26% of the economy touched by something that goes through a seaport. but when you come here, you believe these numbers are real

i'm going call it the cargo choreography it's really incredible, guys when you look at the number of trucks, the number of people, the number of container units there are so many people involved down here a couple thousand trucks a day you've got 14,000 containers on this ship alone. this is one of the biggest ships. by the way, container ships on the east coast they load them on these white trucks they take them other trucks come in, take them out, put them on rails thousands of men and women involved in just the trade of trade if that makes sense. forget about all the stuff -- yeah >> is the idea that that's going to go away because of this back and forth of the u.s. and china, or is it hey, instead of being a ship from china, it just gets displaced with something else. are those jobs at stake? >> well, they are at stake if things slow down that's the only fear trade's not going away let's say you have got x billion in trade being done, 3,000

trucks a day if f there is a 5% reduction in trade because of elevated costs or tariffs, then you're going to see rae duction of that number of truck, of that number of containers there is just a concern in an area like this which has grown so fast and prospered so much that actually a lot of locals complained about real estate costs. now but that's a different issue, that you're going see some slowdowns and no one is worried it's going to go away they simply want to make sure that trade is fair, but also free so this amazing dance can continue and it is amazing. >> i know. the cargo choreography it's good one. brian, thank you very much brian sullivan down at the port of charleston. finally, let's head over to chicago where phil lebeau has some surprising customer feedback. >> it's an annual report the quality of service is soaring, and it did soar last year despite a lot of high profile bad pr incidents involving clashes between travelers and flight crews

somebody getting pulled off of a united airlines flight here were the top three airlines, according to the airline quality report this is all analytical alaska barely edged out delta. jetblue came in number three who lagged in the survey express jet, frontier and spirit came in dead last, according to the authors of the study spirit has a higher complaint rate than the other airlines we reached out to spirit they said yeah, we're bringing our complaint rate down. we think we're making some strides and progressing. >> the other thing i noticed is spirit did well i think on the bag issue. it didn't lose as many bags, phil just because you're thinking the discounts are probably going to do worse on all these measures. >> right. >> that's the whole thing. you're going to get a cheap ticket but not the great -- >> kelly, you know how it works on spirit. you pay if you check that's why most people who fly spirit are not checking a bag. they have fewer bags to handle >> true. that >> said, that said, you were correct. they had the best performance in terms of handling bags >> right, though

it makes it easier if it's a smaller number i hadn't thought about that phil, thank you very much. phil lebeau there in chicago bertha coombs is over at trump tower, midtown manhattan where we learned in the last hour there was an fbi raid on the president's lawmaker michael cohen. bertha, what can you tell us >> the president's long-time personal attorney and attorney for the trump organization michael cohen. fbi officials conducted a raid executing several search warrants according to mr. cohn's personal lawyer, steven ryan the u.s. attorney's office for the southern district of new york executed a series of search warrants and seized privileged communications between mr. cohn and his client he added that he had been advised by federal prosecutors that the action in part was referred to by the office of special counsel robert mueller this is the second time that the office of special counsel has referred a case to the southern

district of new york in 2017 as it was investigating the case of paul manafort, the president's former campaign manager. the search warrant, according to sources who tell nbc news indicates that a judge found that there was probable cause in order to seize this material without giving cohen a heads-up beforehand nbc news also reporting that it was actually his office in rockefeller center that was searched and records were seized and some outlets "the wall street journal" says that his home was also searched kelly? >> all right a lot more still to learn about this one bertha, thank you for briggs us the latest that's bertha coombs outside trump tower. it was a wild day on wall street got the news of the serge right before the close the dow ended higher only 46 point. well were up 440 we'll have a recap and check on the after-hours movers, right after this

let's get you a check on some of the after hours news today. etf is tracking the dow, s&p and nasdaq, all higher after hours remember, we closed at kind of the lows after the news about the trump tower raid came out. now they're up about a tenth of 1% this is after the dow gave back

that 400 points late in the session, closed up just 46 accelerated selling after the fbi raided the office of president trump's lawyer michael cohen. nvidia shares spiking after they upgraded it's plunged 12% in the past month. up 2% today. michael, we're owl of time. >> we'll do it again tomorrow. >> we'll do it again tomorrow if they let us. that does it closing bell. "fast money" begins right now. "fast money" begins right now. overlooking new york city's times square, i'm melissa lee. your traders on the desk are pete najarian, brian kelly, karen finerman and guy adami mr. zuckerberg goes to washington, getting ready to face the heat in congress tomorrow and wednesday we'll tell you what it means for the stock. plus, the crypto crush rages on if you're getting wrecked, don't worry. brian kelly has the one coin he thinks is going to break out first, we start off with a stormy session for the market. the dow surging 400 points the highs before selling off hard into the c