season to be paid in cryptocurrency so we could see selling pressure abate here. >> some believe this is the leading indicate for the stock market >> yep >> all right i was going to talk about impressions of john flannery at the net-net event. that's for another time because we are out of time >> we are. thank you for watching "power lunch," and "closing bell" starts right now >> hi, everybody, welcome to "closing bell," i'm kelly evans. >> i'm wilfred frost on the eve of earnings season, stocks in rally mode, stock 373 points at the high today will earnings replace trade as the focus for the markets? >> a big development on trade, you are following it from the white house today, and bertha coops watching nasdaq movers, and bob pisani is on the floor of the new york stock exchange what keys us off

>> we got two stories moving the market one is earnings anticipation, particularly on the banks, and secondly, the series of headlines that go up and down. i want to show you the banks continuing to do very, very well often they sell off before earnings season, and jpmorgan reports tonight. rising rates, lower taxes, volatility's back. the trading revenue will be good we also have deregulation. that's helping out then we have the serious story earlier in the morning at 6:15, the president tweeted out saying the strike on syria could be coming soon or not at all. the market moved up, they like the strong at 1:00 eastern time, cnbc.com ran a story saying there was a possibility the u.s. was considering a strike on eight potential targets. we came off the highs. for the most part, stocks like caterpillar that had come down, go to about 147, 148, and come down, most of them are coming back right near their highs. then we have a big ipo today that's quite a winner.

we'd rather get a company up 50% in the single day, but this went public today, zuora, a cloud based billing and management company. they priced at $14 look at this, $20, almost a 50% gain finally, just want to know, s&p 500 for the year, we finally got back to the flat line. we had a nice run here recently, but 0% gain on the year. that was better than a few weeks ago. guys, back to you. >> thank you very much for that. nasdaq on pace for the best week in more than a month, and we have a look at the movers in that index for us. >> yeah. today, in fact, we are seeing just this broad based rally, though, moderate to light volume, but chips are really what's underpinning it in terms of technology. up for the first straight session among the big leaders, memorychip maker micron, and bitcoin is moving mining-related chip makers and nvidia and amd

they are strong today, amd, bear in mind is down 35% from the 52-week high and a third of the nasdaq remains in connection, down 10% from the highs, and facebook among them it is down for the first day this week, faollowing zuckerberg's performance on capitol hill off 15% from the high. travel and leisure names a bright wynn resorts at a one-month high on reports it's in early talks to sell its boston harbor casino project to mgm, and the airlines getting a lift as well after delta's strong earning results, notwithstanding, kelly, there's rising jet fuel prices and ricing fuel prices could hit travel and leisure this summer if folks don't drive as much too. back to you. >> shaking it off today, thank you, bertha coombs revelations that the president is considering

reentering the transpacific partnership. let's get over to eamon at the white house. yeah, he is, with more hi >> reporter: hi, kelly, i am at the white house where the president today apparently told lawmakers from agriculture states he ordered kudlow to renegotiate or get back into the tpp, the transpacific partnership. there's a scramble going on here at the white house right now to figure out exactly what the president meant. we have asked aides repeatedly over hours here for more detail on what the president's thinking is here, and, so far, none is forthcoming. we know that the president said this because senator ben sass, a republican from nebraska, came out of the meeting and told us here's what he said. >> definitely the big headline coming out of this meet iing is that the president said he was deputizing larry kudlow and ambassador lighthizer to renegotiate the tpp negotiations >> reporter: it was surprising because on the campaign trail, the president was an intense critic of tpp saying it was bad

for american workers and american jobs. this is what he said back in 2016 >> there is no way to fix tpp. we need bilateral trade deals. we do not need to enter into another massive international agreement that ties us up and binds us down like tpp does. >> reporter: in 2016, the president hated tpp p. in 2017, he got the united states out of tpp, but here in 2018, the president softened his tune in january in davos, the president told cnbc he was open to a form of tpp, but only under certain circumstances. this is what he said then. >> opening up the door to reopening tpp? >> only saying this, i do tpp if we were able to make a substantially better deal. the deal was terrible. the way it was structured was

terrible if it's a substantially better deal, i'm open to tpp. >> reporter: open to it if a better deal. apparently now, he ordered the top economic team to begin trying to find that better deal. the open question here is whether the countries who proceeded in tpp without the united states would be interested in that or not, and whether it's even possible to begin those negotiations at this appointment or if it's happening. no guidance from the white house yet on what specifically the president is ordering his team to do and when we should see the steps take place publicly. we'll push them for more answers throughout the afternoon, kelly. >> thank you >> fascinating way that would annoy china, of course, not part of it, tieing a lot of the other neighboring asian nations more to the u.s. than to china, even if it's not ideal situation, it certainly threatens china. >> well, in a time that's the most important prerogative, there's an avenue to do that that looks more appealing than in the last year or so >> indeed.

earnings season kicking in full gear tomorrow morning with the reports coming from citi group, jpmorgan, and wells fargo before the bell >> you have to cover them all? >> i do, indeed. >> that's a long day for you >> i'm excited i'm excited about the numbers game >> fast money, you have -- it's not up to me, but "fast money" -- >> you could make it happen? baking away now. >> i don't have a lot of pull there. earnings enough to replace trade as the big market mover? joining us to discuss now are carry firestone and tim anderson from tjm investments welcome to you both. tim, first to you. this market appears to be embracing trade, so maybe either way it'll get something it wants here can earnings breakthrough the narrati narrative? so many things going on. >> no doubt earnings are front and center for portfolio managers and sector specialists at hedge funds, particularly it's the first quarter we're getting 2018 earnings under the

new corporate tax structure. now, that said, certainly, if we get some specific guidance, on how nafta may be renegotiated, what deal we may be working on with china down the road or we get high frequency tweets, more clarity on trade, that will definitely have some impact, maybe, at the equity strategist level or at the cio level where they may make some sector allocation longer term or maybe some stock bond allocation it's a two-part question, but earnings, no doubt, are going to be front and center for anyone looking at individual stocks >> carrey, good news expected ton delivered within earnings season has been well-telegraphed and bad news of recent weeks like facebook, trade disputes, syria, that was a surprise to markets. isn't that something that is important to note, that there's a high bar to beat when it comes to earnings? >> oh, absolutely.

you saw what's happened in the past week, friday, was an abysmal day, and all anyone could talk about was what mnuchin said about the potential of a trade warmentwar memen mem. and now we are back to being positive again we're going to have those good earnings they will be up 18% for the quarter, and, i mean, outstanding earnings from oil because they had such a miserable past 18 months so now we hope it gets through earnings season we have clear sailing. that's not going to be another scandal. we don't have a bump in interest rates, inflation scare, that's what the fear can come back to the market and hit stocks again. because if we got good earnings. >> a couple names you want to own here into this period? >> well, it's interesting. we have not sold stocks. the names that we like, we continue to like some of the

tech names we like alphabet, google we think the others -- facebook, i think, is a reasonably attractive name. some of the industrials are good financials should have a good quarter. we own some of the cap financials, and i also think you can names -- consumer names like costco, great, great comps today. surew -- sherwin williams on th industrials side >> i'm doing my part for the costco comps, tim. what are you watching closely? banks because they are first to go here? >> well, certainly, out of the shoots, watch the banks. high profile names up 2.5% to 3% today so they have a high hurdle >> front loading the rally tomorrow >> they have a high hurdle to hit, but the question for the market, the last, maybe four, six weeks has been, look, if tech is going to pause for a bit or maybe even have a hiccup on occasion, what takes over the

leadership role? now, we've gotten some good leadership from oil and energy the last week, week and a half, as the kmod commodity trades hi. if financials get through the earnings season and get upward momentum and get leadership there also, that would be very positive >> synergy see if that replaces >> key for them, of course, is the bond deal, also tied to general risk sentiment >> sure. everybody -- a lot of people talk about the curve -- every time someone talks about the curve steepening, it flattens out. >> right >> you know, in february, when the market got the big scare, we expected rates to go right through 3%, and they are now down below 2.8%. >> yields up, partly why banks lead the markets higher. thank you so much for joining us >> thank you a pair of big name ceo interviews making headlines today. we bring you both of those the blackrock ceo was on cnbc

thissing morning after the blowout earnings report, under 2% right now, and the ceo, john flannery, spoke at the net net conference no boston, and morgan brennan has the highlights, and le leslie picker is here. >> 6.3 trillion, with a t, and net in-flows amounted to $57 billion in top and bottom line, both beating wall street's expectations, so what makes this quarter different from others recently well, answer to that is volatility yes, the wild swings mid way through the quarter and beyond causes significant dislocations in various types of portfolios in the black rock business he spoke on "squawk box" today how it impacted his business during the quarter >> volatility did change a whole dimension of, i'd say, of the

markets. a big paradigm shift with the tax reform we saw a slow down in business in february and march from the huge volumes of flowings you saw in january >> now, within black rock's business, shares remitted 34.6 billion worth of inflows in the quarter, index funds representing $10 billion, and black rock's stock is up substantially today, almost 2% there, kelly >> leslie, thank you very much for that meantime, let's go to morgan with a look of highlights from ge's ceo who sat down at the net net conference in boston >> john, again, reiterating his strategy to turn around the struggling industrial company. >> there's too many businesses, the world's too complicated, keep them open throttle at the same time, financial bandwidth

narrow the scope down to the aviation business, health care business, power business, so that was the next step and then last thing, and this is where everything's on the table. my core responsibility is to make sure those businesses flourish in the future for the employees, for the customers, for investors, and in that context, i'm open to any way i can make that happen >> reporter: so not exactly offering more details about his long term vision for the core industrial businesses, but not ruling out possibility of a broader breakup. this interview coming as investors await restated earnings for 2017 because of market wide accounting rules in a filing coming tomorrow, and first quarter results next friday, and after that, a shareholder meeting on april 25th meantime, given all the uncertainty in the company, the stock is down another 25% this year, and it's down more than 50% over the past 12 months. guys >> morgan, thank you very much for that we have just about 45 minutes before the bell.

we are up 355 points, near the highs of the day, and the dow up 373 at the peak. as you can see, a healthy set of numbers, all three major indexes up more than 1%. >> closing bell is just getting started. next up, the banks, and a key ingredient that may be about to make a lot of financials move >> you got very quietly the stealth component, and that's libor rates rising. plus, the one thing that suddenly is very concerning to a top airline ceo. this is "the closing bell" live from the new york stock thchange wi kelly evans and wilfred frost.

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wells fargo, that's $125 billion to $150 billion in variable rate loans. the impacts for citi is $1.8 billion, and jpmorgan, 1.5 billion they did not see this time last year >> so mike is here, the senior banking analyst the wells fargo. mike, welcome to you i heard this issue could offset good news. what are you hearing or expecting? >> well, look, we think this is springtime for banks, and bank earnings should look good, interest rates certainly have a positive impact. you have lower tax rates, and you have 5% year over year revenue growth what's forgot, this is lower risk revenue growth that comes with better cost control, better credit quality, and better capital returns, so springtime for banks, you know, they planted the seeds, and now it's time to get the benefits from it >> interest rate point is important because, clearly, banks pull back a little, share prize-wise a little bit, and interest rates off the highs,

but looking back at the start of january, we are high from then, and as the libor aspect as well. which of the banks is that playing into most of all >> well, look, bank of america is a name we continue to recommend. they are more of a pure u.s. play they benefit from higher interest rates, but i want to pull the lens back a little bit. this is an important topic it's topical, but what bank of america's likely to show is the benefit of a 25-year structural breakout for the benefits of scale, and so this is boring stuff. hundreds of tasks inside the firm to make them more efficient -- >> yeah, it's not boring, they are up 35% and wells is down 1%. is a lot of that good news you described priced in already? >> absolutely not. look at the valuations of a bank of america or the large banks compared to prior periods when they had double digit returns on equity, they are still undervalued, and, by the way, citi group is still the top pick this should be the first quarter where they have a double digit return on tangible equity before

the financial crisis it's even springtime for citi group after 20 years of winter >> mike, it's an anniversary for them as well >> it was a 20-year anniversary of the founding of citi group in its current form as of last friday over that period, citi group declined by 80%. the stock price down 80% in a time the stock market had more than doubled when we say it's been springtime for citi, that's after a 20-year winter for them, but they are breaking out also. not always doing as well as we think they should, but even with the positioning, a lot of upside for the stock. >> coming soon after earnings for citi is the annual meeting as well. what are you looking for there >> well, as you know, i go to the annual meetings, love going to them, bank of new york's meeting this week, and i had my one share of stock, and i do have ownership in the banks here >> that's citi group >> my one share of citi group stock, the ticket for admission

to get into the meeting. >> that's why you buy one in each of them >> exactly two shares in each, in case i want to bring them along, maybe you guys come with me sometime look, this is an important issue. the chairman of citi group is stepping down at the end of the year mandatory retirement so the big question that i have at citi group's annual meeting, a week from tuesday, the earnings are tomorrow, but the annual meeting is more than a week away. >> called back to be chairman? >> who will be the chairman? could be the current ceo the feedback i got from investors is not so sure about that nice to have another set of eyes at the top of a company where the stock price declined by 80% in two decades why not consider gary cohen or harvey or some of the other talent that's out there. >> are you trying to imagine gary cohen coming in as the chairman of citi group after build the career in goldman. that's an interesting idea to float out there. >> there's a lot of talent out there, and citi group owes it to itself they'll consider mike for

chairman, but consider other people too >> quickly, on the investment banks' strong trading performance expected, enough to boost goldman sachs? >> the wells fargo securities proprietary fixed income team up 30% this year, best play on that is goldman sachs, and, by the way, their annual report, look at it. well, last year, it was depressed due to low volatility. well, that's back. results should be higher >> should be mike, thank you so much for joining us positive on all of them, as he just said. >> the springtime tie on even. >> so do i >> nice flowery pink - >> with the sun, that's true >> i got the grass is green. 35 minutes to go dow near session highs, up 400 points, 378 to be exact. gains across all too crude climbed as middle east tensions flair, but delta's ceo is not worried about rising costs just yet we'll hear what he said just ahead. obal markets,

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welcome back to the "closing bell," picking out stocks to watch. not so much just today or performance, but here's the chart over three months, against facebook, amazingly similar as you can see the way the two stocks track each other, and you asked why is facebook, faces regulation, likely to face, also going to apply to the different

regions, does that mean it's a buying opportunity there's statistics, and they have a bigger market after the fall, facebook, its revenue is a bit low, so the price to earnings still a little bit higher, whether it grows into that, and that pullback itself from the last couple weeks you wouldn't think it would in lieu of facebook >> it doesn't, i wonder, by the way, the dow at 401 if people are dumping fang when there was a tech issue here in the u.s., but the ali brbaba traded as a group rather than name by name that could create opportunities, not that, by the way, i think -- as -- if you think facebook has an issue with u.s. regulation, try being in china right now >> exactly right up 400 points near the highs of the day. we got just over 30 minutes to going in the close still ahead, president trump sounding off on china again today saying in a certain point the country will, quote, run out of bullets on trade. how trade bas rbare impacted

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that level, up 1.6%, and the dow the best performer, russell up 1%, the underperformer intel up 3%, and jpm, the setup for tomorrow, 3.3% today, that's trading fed minutes before they come out >> 3.4% today partly because of the yield pushing up to 2.84% to catch up from the yields that sue has a news update. >> i do. here's what's happening at this hour, everyone in the morning briefing, nancy pelosi warning president trump against firing robert mueller or ros rosenstein >> if the president fires mueller or general rosenstein, it will ignite a crisis and

declare that president trump believes his administration and his campaign are completely above the law. >> french fighter jets took off from a military base in france in a cleaning drill as paris and allies work closely to decide whether to strike back against the syria government following a suspected chemical attack. and a new study from the university of california san francisco says patients with colon cancer improve their odds of survival by maintaining a healthy lifestyle. researchers say those who kept a healthy weight, exercised, and ate a nutritious diet after their diagnosis had a lower risk of dying from the disease. probably good advice all the way around >> i was going to say, makes sense. >> it does >> sue, thank you. >> you got it >> back to bob pisani now, markets rallying near session highs, bob >> and we are just off the highs. we hit 400 points. no significant market on close orders and more importantly all

the right sectors like the growth sectors are holding up very well, after early morning rises, to banks are leading with the earnings coming up, industrials, tech, materials, this is what you call the global growth sectors, and they are sitting essentially at the highs for the day. just want to show you the big banks reporting tomorrow we have had been talking a lot about this because generally it's a very good news story right now, jpmorgan, citi, pnc reporting in the morning, and bank stocks traditionally come down a bit coming into the earnings season immediately after. that has not happened yet. there's a nice dip in the beginning, middle of march, concerns about tariff issues, the banks dropped with everyone else, and quickly stabilized and are doing better in the last few days the story on what we are expecting is very simple heard a lot about it, but making it four simple ideas here. you got rising rates you got tax cuts you have high evolatility leadig to better trading volumes, good numbers from the big money

center banks, and, finally, less regulation you put that all together, folks, and you got a stew of generally good news, and, of course, very interested to hear what the companies have to say about any issues around what they will be doing with tax cut money in detail tomorrow guys, back to you. >> thank you for that. discussing it further, joining the exchange today, lori from lck wealth management, peter, and rick santelli in chicago it's an optimistic picture today, but you are cautious overall. >> yes i do believe that we are generally optimistic and bullish, but in the near term, the head winds of rising interest rates and a tariff war are putting some color against the tax cuts being such a big benefit to our country and to our businesses >> does that mean for earnings you don't think the results are going to impress, or what are the ways you invest around that

theme? >> well, earnings expectations are up 17 or 18%, depending on who you are listening to, which are already high, so it's only what forecasters or what ceos or cfos get on to say about the coming quarters that i think could show a head wind otherwise we expect those to be positive it's just looking ahead, are we near a peak in earnings? >> beat earnings expectations too rich already >> well, you know what, i think we are probably seeing as good or better than expected earnings this quarter i would not expect it in the second quarter i think they will probably meet expectations, maybe we'll beat it now, i have been big on the financials i mean, i own jpmorgan, so i love the financials at this level. was listening to mike mayo, and, you know, everything looks good as far as they are concerned one thing i'm concerned about is that, you know, the trading revenue, i don't think you're going to see that robust trading

revenue. i think that the banks are even though that that's what they one of their core businesses - >> even with the volatility coming back? >> i think that's where people will be very disapointed they were not that involved. >> all right >> i'll stick you a beck, i reckon they are strong >> okay. earnings might be -- >> information to share with us, by the way >> no, absolutely not, just, listen, i think fixed interest -- income qualities in currency can be challenged, but volatility in equities, particularly for goldman sachs, comps easy >> you'd think so, but being in the market and watching what's been going on, you don't see the activity that you'd expect with banks being -- should be that -- >> all right, we got a gentle n gentlemen's bet here >> yes >> a bet over a beer >> i'm not bearish saying there might be a fractional part of the picture >> year on year or better is my prediction for big banks rick, you as well, talk about the jump in yields we saw today,

a factor helping the likes of jpmorgan to the top of the dow >> yeah, no, i find it fascinating because you never know why, but let's look at variables that could be on the table. you know, we had price moves year over year on import and export prices. monthly data was not threatening. look at import price, for example, highest level, you have to go back to march 2017 to find a bigger year over year change than the 3.6 now, that's not that long, but it is something to consider. what's really fascinating is that everybody focused on the import prices in lieu of what's going on with trade. guess what really moved more, export prices. they are at 3 partnersh.4 back to december 2011 to find a higher year over year change there's a little bit of pressure there. the equity markets for the most part seem to be weathering all the uncertainty, and you add in the tpp, which, by the way, if you just look at it strategically, from a political aspect, it was actually quite brilliant.

unleashes larry kudlow and lighthizer with respect of expanding trade, mitigating other issues lingering regarding china. i think when you add that in, although the european numbers were bad, that it's enough horsepower the key is how it closes tomorrow let's be frank here, you know, we dip below the 280s briefly, sort of right back in the range, but the key is that we could never really get much below 2.75 that's the salient feature >> rick, glad you emphasized this also in the report this morning, import prices outside of fuel for the last three months, annualize it, 4.9% we're talking. is that partly because it's been weak that's a pretty hot number >> no, it is the dollar's weak, of course, so if demand is good and the economy on a relative basis is better than the rest as we buy things, we pay up a bit, so i understand that it's not optimum

and why a said a stronger dollar is best for middle class, more f purchasing power when things are good, but, yes, plays into that narrative. >> the tensions, is that priced into defense stocks already or attracted to those. >> no. i wanted to say two things one is i think that the defense stocks are multifunctional in today's society. talk about cyber security, artificial intelligence. we -- we're not only talking about geopolitical risk here, but there's a lot of engines to be had for earnings growth that will end up in the consumer markets as well. so we are bullish on that. as to the dollar, i did want to add that the dollar is key here because you look at material prices, look at oil, energy, and energy stocks have not moved with oil prices or natural gas prices that's a real disconnect usually one is converse to the dollar inflation.

the fed said they think cpi could be 2% or more, and that's okay we have not seen that in a long time so i would expect more inflation. i would expect that would be good for retirees, and that means wages could go up, and, therefore, in the long term, i'm bullish, but in the short term, it's a head wind for stocks. >> okay. great stuff. thank you very much to you all, lori, peter, and rick. 20 minutes into the close. dow up near the highs, up 400 a moment ago and 385 now deal thlta higher after ear, the ceo weighs in on the stock performance and atwh's the wild card for the company in the year ahead.

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we'll listen. we'll talk. we'll plan. baird. welcome back, oil prices could impact the airline sector, but, by the way, airlines are doing well today trading higher in the wake of delta's results this morning, and delta up 3%, united, southwest, and jetblue rallying too. >> phil lebeau is in atlanta with more on this and fresh comments from the ceo.

phil >> reporter: and, i'm note surprised to see that delta is up more than 3%. listen to this susan and research looked at the last five years of earnings reports. if delta beats consensus, the day they beat consensus, the stock is up on average 2.5%. and today it's up more than 3%, and delta beat the street today earning 74 cents a share the company reporting record passenger revenue, even though overall revenue was slightly below estimates, record passenger revenue, pretax margin comes in at 6.9% if there's one area in delta's report that might worry investors, this is it. jet fuel costs up 20% year over year, and this is not just delta watching, but all the airlines when we talked with the ceo this morning, he's not overly concerned yet. >> it doesn't worry us it's been volatile certainly, over time, it's been up, about 25% up year over year basis, and we have to price it

in our revenue base, and thus far, we've been able to do that, but i think that will be the wild card for the year in terms of where fuel prices go. it was bouncing all around in the quarter, absolutely. it was down at one point, up, so we'll see what's going to happen look at shares of delta, the company will begin flying the c series from bombardier, one of the primary customers beginning to fly that next year. airline stocks all up today in part of delta report and what delta sees what all see. extremely strong demand in part because of the strong economy. back to you. >> phil, i want to ask you about the tesla news this afternoon. the spat between tesla, regular late regular regular -- regulators, and the family of the victim tesla saying they are not cooperating. there's finger pointing now. >> reporter: right tesla said they pulled out of

the ntsb investigation into the fatal accident outside san francisco. the ntsb said they didn't want them a party to this it's not the first time ntsb and a company in the center of an investigation have parted ways it just means tesla will not be part of the investigation. could that impact the investigation? maybe slightly, but overall, it should not have a huge material impact on the investigation, and, again, tesla says they pulled out, and ntsb said we asked them not to be a participant of it anymore. >> although, phil, larger issue could be if the family continues to pursue legal action against tesla saying they are responsible. >> reporter: right well, that's totally separate, kelly. if they go to legal action, that's going to happen whether or not tesla was a part of the ntsb investigation or not. the family has already made comments in local media in san francisco saying, look, the victim in this case was having problems with auto pilot, and that's one reason the family is,

perhaps, going to file a type of lawsuit against tesla, and, again, that is separate if it proceeds that way. >> right tesla shares down now nearly 1.5% phil, thank you very much. phil lebeau. >> reporter: you bet we got around 14 minutes before the close off the session highs, were as high as 400 points, now up 325, but, still, a healthy session, a percent or so of gains for all the indexes. is the market poised to go higher or lower by year end? comments from two legendary investors next tomorrow on "squawk box," speaking with congressman boehner, we heard about the new involvement with a marijuana company, asking about that and more including who the next speaker might be after paul ryan at torpping down th'somrow at 10:30 a.m. person is the monolithic view

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. too much complacency we'll test the february lows, but i think the year's going to be good, and i agree with steve we'll have 3% growth pretty much for the year, and earnings are going to be good, and interest rates are going up, but not too much inflation is going to stay tame, and the earnings will be terrific >> that was byron wayne speaking

about his optimism on the markets. meantime, here's blackrock's ceo, larry fink, sharing his view >> i'm not sure what inning we are in late in an economic cycle. it's been extended by the tax reform, let's be clear >> and i think it's interesting to take both of those, but byron saying we are going to test the february lows, but optimistic. it's hard to take from that how optimistic he is if we test the lows, that's a great surprise to a lot of people pushing the market up 300 points today >> there's a sense of we're going down then up, and, look, the market wiggles, moves around, that's what happened no one knows where it's going. to larry's point, read something more into their -- his declaration there? >> i think, you know, he says the heavier amount of investors pulling 100% exposure to equities today as well, but there's a long term call for retireees than valuation call. we have not talked about the

eurozone industrial production numbers this morning incredibly soft declining. you're laughing. this is important stuff. we talked about global growth as a given and only gets better from here. you'll see around the rest of the world, that's changing direction. >> it's a good point >> that's another head winds >> stocks in the u.s., citi economic surprise index, so as data is soft, even here the last couple weeks, they took stocks down with it, globally, too, feeds into it, and now a comeback a little bit, but we'll see. >> we will, indeed today, though, certainly positive sentiment here, up 1.4% on the dow, and up next, back with the closing doesn'tdown >> still to come, after the bell, it's the new sub prime, benefits and risks of this lending still to come. we're back in two. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.

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points it's a decent session, up 1.4% for the dow, and s&p and nasdaq up less than that but around 1%. weak to date, of course, markets looking healthy into friday in and around the levels will be about 3%, 2.5%, 3% higher for the week for the indexes look at intra-day. it's been steady all day we opened 200 points higher, improving in the morning, and we stayed in and around the level throughout the day in terms of what's moving, it's a mixture of positivity approaching earnings and also easing fears on geopolitics and trade and have the likes of boeing at the top as you can see, and intel is higher as well as blanks like goldman sachs and jpmorgan in light of earnings kicking off tomorrow tallies with that, industrials, financials, there near the top, in terms of the worst performer, it's that utility interest rate sensitive sector that's at the bottom, as you can see, utilities down 1.3%. financials lead the charge

higher, up 2%. let's end with a half screen of the banks that are reporting tomorrow morning we got jpmorgan, seven, citi group, wells fargo, pnc in the morning. high expectations for the banks' earnings why? yields have risen in the course of the first quarter, yes, came back in the last couple weeks, but from the start of the year, yields higher. ten-year treasury chart for you highlighting that point. also, a quick look at what the expectations are for trading revenue. of course, volatility has picked up, and we expect high single digits improvement year over year for the quarters trading revenue, about 8% if we go with the number internet forecast, coming in equities more than the fixed income performance, but can trading and higher rates boost earnings for the banks tomorrow, and can those earnings offset trade disputes, bob pisani >> i think you'll see -- i love the numbers because we see similar numbers for e-brokers

like ameritrade. their indications their trading numbers are higher thanks to volatility volatility begets trading volumes. that's a good estimate at 8% to 10%. does the ten-year matter 2.4 is at the beginning of january. 2.8. a huge difference. that's a lot people say, realm, it's not going to matter. net interest income goes up on that for sure. everybody knows, whoever has a deposit account in banks tha banks are much less willing to raise the deposit interest that you get than they are to raise the cost of loans or things like credit card fees they are eager to do that, and, of course, this is a complaint about the positives for many, many years interest rates are up, how come i don't get more on the deposit? that's because banks will hold off doing that as long as possible and why they have net interest in an interest hmar

join >> today's markets, we had easing tensions over trade, and that's played into the stocks and sectors we'd expect. >> yes when the president came out at 6:15 a.m. and said we might have issues with syria. we might have to go in we might not the might not part immediately 12 points on the s&p 500 heavier volume we've all become geopolitical analysts now david faber said what happened to stocks? stock reporters? now geopolitical analysts because this moves the market and what we have to follow on a day-to-day basis what i'm hopeful for is that we're going to get very positive comments on what companies are doing with the tax money, and i expect jamie dimon all over that tomorrow will say something about that early signs. we've seen the company's reporting, comments, 40% said they will increase capital expenditures that's a huge amount for companies in the capital expenditure business, industrials, technology companies in particular, looking for that color, and that's going

to drive the market forward. >> a look at the u.s. dollar, weak to date, down.6%, not catching a bit >> there's been no real trend here overall in the last several weeks, so the overall, i think the lower dollar has been the trend for the quarter, and curious to see what that does for various companies. >> there's the bell. we are seeing about 300 points gain on the dow. the high was 400 points for the day, but still a pretty good return ringing the bell here is mgm growth properties, and nasdaq is good deeds day that's the growth. kelly evans has the second hour. ♪ thank you, welcome to the "closing bell," everybody, i'm kelly evans. we are well off the highs at the

bell here. at one point, up more than 400 points, and now we have a gain under 300, 1.2% higher for the blue chips s&p 500, up about 21 points, and just a little more than three quarters of 1% to 2664, and nasdaq up 1% to 7140 and russell 2,000 with the caboose, they are the caboose, the caboose bringing up the rest of the train -- anyway, two-thirds of 1% today to 1557 some things across a number of sectors to talk about with bank earnings on tap tomorrow and trade concerns alleviated today. senior markets commentator joining me now, and cnbc contributor from the ciaa company, and nancy from heartland financial, welcome, everybody. topping the dow today was boeing, which is interesting bolted to the top there in the close. mcdonalds was the decliner with a drop of 1% that was the biggest one fall on the dow. in the s&p, insight up better

than 5% to lead the way, and l brands down 4.5% did lag mike, i mean, even though we are strong at the end of the session, after we got word from the white house about maybe reconsidering the tpp, still, all day, we were up pretty much at those levels. >> we were it really showed you that i think the market is trying to lower its sensitivity to the policy headlines and some of the fixations we had in the last couple months, frankly i think all week, you had the market trying to almost sort of heal itself a little bit to get ready for more corporate news. i think that's part of the process here yesterday, i was here saying the indexes were down and kind of overstated the weakness of a flat day today, a strong day for the big cap indexes, but below the surface, it was okay i mean, i think it's basically back to normal there's two-way trading. you want to see financials in tech lead, which they did today, so i think it was one of the near three week high, say that's good, but there's more to prove.

>> you said, yes, technology and financials today and luxury retail, sprinkle that in there too. >> not like the good old days today, and high yield participated nicely. see if that translates into tomorrow i think tomorrow's really going to be all about the banks so we'll see there, but it felt good, and i think it is that we did not have macro headlines to be obsessed about, and people are looking to earnings, x.ing good earnings, and the market is down 7% from the highs trading in realistic valuations at 17 times forward estimates, so even if earnings are great, but not -- they don't beat by a large margin, i think it's enough, actually i think there was the setup that's quite nice at this point, so i think, you know, you asked about luxury i will tell ya that ldm, estee, ulta, they did well today, reporting nice numbers, and people still want to look good, and -- >> what's going on with that

i mean, where is that coming from talked about luxury exposure to china was a problem, and so crackdowns there, and then even in the u.s., there's other notes about high enreal estate and dropoff there. it's an interesting area about performance. >> loreal said china grew the travel piece 28% growth, so you are seeing a lot of strength from china, but it's across the board. even the u.s. was quite strong, and europe, so it is definitely a time within consumer, within discretionary where you want to be, and on the pullbacks for all of these macro reasons, it's an area i'm adding too. >> there's a subgroup of consumer staples, just personal property, which is estee and things like that, the strongest group, and basic nonfood consumer staples >> food is not the place to be right now. >> another deal. there's a bull market in personal pampering or whatever it is, and maybe that's what it is >> nancy, what do you think

about luxury retail, what parts of the market are you watching today? >> well, that's a personal question of my shopping that's out of control look, we are still staying with the things that we have liked, and we have been picking away at stocks like we added to blackrock yesterday. i thought that report was constructive, and it beat on most items, but it lagged on close, yet the stock reacted nicely added to costco recently and added to technology like cisco, intel, texas instruments, and microsoft recently so i think a lot of these themes continue to play out it's just daily whip saws of news flows that i can't remember what we were talking about last week i think it was trade >> or last hour. >> yes right. >> guess what, we'll talk about it again getting to it now, fears of a trade war with major market impacts of late, including today. we are standing by with the on

the ground impact it's having on the pork industry. oh, that's great an image there, but starting with eamon first on president trump possibly revisiting the transpacific partnership today, eamon >> reporter: came with agriculture state lawmakers telling them he was going to order robert lighthizer and larry kudlow to renegotiate tpp, the transpacific partnership to look for a way to get back into that deal. now, that was something that went over well in the room, and ben sasse, republican from nebraska, came out and immediately told reporters outside the reporters the president said this because farm states view it as a positive for them in terms of exports, but the president began his softening on tpp as early as january on cnbc in davos >> are you open to opening the

door >> i'd do tpp if we make a substantially better deal. the way it was structured was terrible if we did a substantially better deal, i'd be open to tpp >> so the president there saying he would be open to tpp. that was in january, but listen to the way the president talked about tpp back on the campaign trail, back in 2016. this is a central promise of the president on the campaign trail to get the united states out of it he did that in 2017. this is what he said in 2016 on the campaign trail >> the tpp as it's known would be the death flow for american manufacturing. it would give up all of our economic leverage to an international commission that would put the interest of foreign countries above our own. it would further open our markets to aggressive currency cheaters >> reporter: so how to understand all of this

today, i talked to folks inside the white house, and my sense is there's not much expectation here, that this is actually going to happen. it's getting a lot of attention, a dramatic movement for the president here, but in terms of practical reality, the political reality is this have to be a much, much different tpp deal for the president to stomach it politically for it to happen, and economically, the president, as you heard there, believes that this was a disasterous deal for american workers, so, therefore, he wants significant, significant changes, kelly it's unclear that that could actually happen. wait and see what the white house says additionally. back to you. >> good point, thank you eamon javers in washington nancy, to you, the market's approximaproxy for internationa leads the dow. does that mean the market wants to see movement and actually get that big trade deal signed or more, you know, look, if the president's open to it, hey, maybe we don't fear the trade

war rhetoric in general so much? >> yeah. i think that it's a couple of things i mean, the company has quietly been just reporting really good deals, lots of new orders signed, the deals are moving along, companies' profitability quite remarkable, which is why we've been in the stock, and it has traded as a proxy for china trade, but it's really not nearly as exposed as some other companies so people use it in that way and positive it's recovered and up pretty nicely for the year >> boeing up 3% today, guys, what do you think of it? mike >> i think it is part of the market's effort to say maybe the temperature on the trade issue is kind of going down a little it wanted to go down i think investors view this whole tariff as an unforced error in terms of economic policy true or not, look, do we have to

worry about it why. we are fine with the multinational companies. >> by the way, they pulled back on that, we get reports today about ways they support agriculture that include buying a bunch of soybeans at the price -- >> message is basically, we're going to minimize pain if anything gets done, or maybe they are rhetorical gestures to put trading partners on notice >> right as larry reminded us yesterday, none of this happened. most of the tariffs so far just proposed >> all part of the negotiation this is what it's all about, so it's also -- >> and ending negotiation. this is a negotiation, statement of intention how you'd like to see the world, but not chasing it because we're not talking right now. >> unconventional. i'll give you that that's why volatility is up, right? i mean, it's been every other day, i look at my performance because those are the good days. the other days are the bad days. telling you, it's not easy >> pick out ones you don't want is how it works. >> wish you were my boss, that would be great

>> no problem. >> industrials hit hard. initially it was we were growing too fast, and then inflation was going to get out of control, and they wouldn't have the price or the pricing right away to offset it, fear they rolled in february, and then it was the other things we are getting bits and pieces on nafta, of course, you know, xi earlier this week on the trade deal, and now tpp. i mean, these are things that are easy to buy industrials off of, quite frankly. >> you're standing in a meat locker, probably not warm in there, lean hog futures are a way to watch the impact of this. they were higher today, but they are still down more than 5% since china slapped tariffs on u.s. pork last week after the president easter riffs on steel and aluminum meat packing facility in new york, how is it impacting the industry and consumers >> reporter: well, kelly, listen, china is the world's biggest consumer of pork, and at

this size and scale of china's pork market is a powerful player in dictating and determining the price of pork prices here in the united states. you touched on hog prices. even the fear of these chinese tariffs sent hog prices down 20% over the past 1 month with an impact on international and domestic pork producers like the family brands here in bronx, new york that packages and ships over 100,000 pounds of meat every day. >> could we find another export market to replace china? perhaps, although, i think the u.s. farmers have been growing steadily with exports to china, but it's not just that they buy pork it's what they do, but it's a critical component of what is going on >> reporter: the advantage of selling to china, there's growing demand for other parts of the pig like tail, feet, and skin,sumed in the united states.

it's called the pig byproduct market worth over $1 million growing over the past couple years. take that market away, and that could pressure margins even further for farmers and u.s. pork producers, so that's why the u.s.-china trade story is so important for the meat industry. >> you have not had pig feet have you, seema? >> i've had pig feet soup when i was in china back in 2016. >> oh. >> reporter: i got to say, it was pretty good. just add salt and pepper >> i had a chicken foot once, no, i was 4 -- no. anyway >> reporter: oh, all right >> we have to recover after seeing these images. seema there with the impact on the ground i wanted to bring you news quickly. broadcom made moves, trying to buy qualcomm, denied the opportunity, and now shares are spiking. leslie picker, what's happening. >> announced a $12 billion share

repurchase program just moments ago, stock rallying on that news today. they say the authorization is effective immediately until november 3rd, 2019 the cfo speaking in a press release how it enhances capital allocation strategy, but you can see the stock is up about 4.25%. back to you. >> it's a big deal just because people beat up on him for pursuing qualcomm, but now a capital -- >> a $100 million company, more than 12% of the value of the company, also sends the message to the market likely that they are not an aggressive buyer of something else >> exactly right the strategy in the story shifts a little bit, but you know what you're getting, more of a value story, buyback story, that, you know, it's not massive, but positive for the share >> nancy, last word to you on this >> quoting my friend, look at the fundamentals

this noise in the interim is an opportunity for those of us who have a time horizon longer than 20 minutes, so i still like old tech and industrials and financials, and we're actually overweight energy as well. i think those are the places you want to be focused on in the coming months. >> all right guys, thank you very much. stephanie, nancy, talking the markets, and there's more ahead still on the "closing bell." next, today, evidence of the product that brought on the housing crash ten years ago may be making a comeback plus, making the case for stocks beyond our borders. in the midst of a new round of uncertainty and volatility this is the "closing bell" with kelly evans live from the new york stock exchange. at&t provides edge-to-edge intelligence, covering virtually every part of your business. so this won't happen. because you've made sure this sensor and this machine are integrated.

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look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. welcome back here's the sectors of the s&p to give you a sense of the composition. financials led the way with the nearly 2% gain flip side was utilities down 1.2%, and as you guessed, ten-year creeped up a bit today,

2.83% at last check. a news alert on president trump, eamon joining us >> npc news reports now that negotiations, high stake goir negotiations between president trump and the special counsel robert mueller's office have broken down in recent days now, both sides, npc news reports, are proceeding with legal strategies that presume that there will not be a presidential interview by mueller's team or mueller himself. the negotiations apparently broke down in the wake of the raid on michael cohen's office and home, we saw the frustration and outrage of president trump over that raid earlier in the week, and he called it a direct attack on the country that the special counsel's office refers that to prosecutors in new york and fbi teams would raid his own, the attorney-client privilege is effectively dead, and defenders of the move suggest that attorney-client privilege does not extend to attorneys aware of or took part

in any type of crime or fraud, so this is a significant development, and it's going to be read as possibly a win in the very short term for the president in that he does not now face the opportunity -- the danger politically of sitting down with robert mueller, but he also loses now the opportunity to explain his side of the story to those proximate results looking into this for nearly a year now, kelly. >> back to you >> sounded like the president wanted to keep the option. this is interesting. thank you very much. >> you bet >> moving on, rescue lending a part of the housing market meltdown last time around fueled the crisis of 2008 the tactics are making a comeback because of demand from borrowers and lenders today, diana has the new sub prime, diana? >> don't call it that, though, mortgage credit is tight, and that has nonbank lenders getting more in. welcome back subprime now called non-prime.

i repeat, nonprime, but it still loans to borrowers with low fico scores and high debt, but supposedly paying attention to risk this time >> we're not going back to the bad ol days of ninja lending with people with no jobs, income, or assets getting loans. that was layering risk on risk >> reporter: now, carington mortgage with fha loans expanded into nonprime space reaching out to 20% of americans with scores of less than 600, as low as 500. today's average borrowers are in the mid 700s those in foreclosure are okay or with a history of late payments, making loans up to $1.5 million and catch out refinancing up to $500,000 you can use bank statements to verify income rather than tax

documents. there's demand from borrowers and investors. back to the future again carrington says no they will underwrite each loan m manually accounting for risk if you are high risk, you'll have a larger down payment or cash reserve and interest rates will be higher much more on the new nonprime, kelly, on cn prbc.com >> got it. are those cherry blossoms behind you? nay are beautiful. >> it's not snow >> thank god for that. diana, thank you very much let's dig deeper into whether this nonprime issue is something to be concerned about or interested in. joining us now, marcus stanley at american for financial reform, alongside sam dunlock, senior portfolio manager, securitization of nonprime residential mortgages. welcome to you both. i have to start with you on the market dynamics here

i heard people, members of the public say, you know, if you start to -- going back to subprime, nonprime, whatever, already so many bidding wars and high prices breaking outs across the country in housing shortages, you know, how is this going to play out? >> excellent question. like the prior guest said, there's a lot of demand, generally speaking, for residential mortgage credit, and i think that's a testament to the asset class as a hole. there's a tremendous amount of demand for residential mortgage credit exposure in the u.s. because the credit quality improved dramatically in the post-crisis period, but long to values we are seed in the collateral and sub sec sore improved dramatically because of rising home prices, and that's been a big fundamental tail wind for the housing market generally speaking in the post crisis period there is a housing shortage as you mentioned, and that is in the face of a millennial generation that's coming online right now, and the demand for

housing expected to continue to surge, and that's improving the valuations of the collateral that backs bonds, and that's why us and along with many other fixed income on tunis tick investors look to residential credit as an area of focus >> okay, marcus, your appointment of view on this, do you embrace the move of bringing more nonprime people into the market, or no? >> well, there's no doubt that it's -- there are good loans to be made to people who might have one flaw in their credit, say a low fico score, but there are other factors, whether they are good income or a high down payment that would render them able to repay that loan, but i think some of the concerns here is that we did see during the financial crisis that there were lenders willing to put money out there, and there were investors willing to buy loans that were not really designed to be repaid they were not designed to be flipped or had high costs

elements to the loan, high fees that made a profit even if that loan couldn't be repaid. >> well, and borrowers reminds me there's a lot of people who probably stretched, knew they could get a loan, and kept looking at home prices going higher, like what sam talked about and thought, you know, everything's fine as long as home price goes up 10%, and when it did not, it was not fine. i mean, is that the same mentality this time around, hey, home prices are climbing so it works out okay >> exactly, as long as home prices climb, people feel i don't have -- i'm not going to have to default. i won't be forfore -- fore closed upon because i can refinance or sell the home the problem comes when that reverses area of concern right now, it's a period of weakening regulation we see mulvaney trying to weaken rules governing mortgage lending and seeing just yesterday that the regulators drastically

reduced requirements for risk-absorbing capital at banks so for the market to revive in a time when the regulators are weakening at the same time, there is potentially an issue of risk >> yes marcus stanley, stan, thank you so much for joining us we have to move on to more housing news, but appreciate the opportunity to talk about nonprime this afternoon with you both thank you, gentlemen >> zillow is moving, what's going on, leslie >> move upward, gaining on preliminary q1 results and jut looks bullish for the company. they see q1 revenue upwards of 2 the 99 million, and analysts expected 295 million for the quarter. the full year, revenue will be upwards of $1.43 billion according to the company, and they expected 1.31 billion there is a conference call today at 5:00 p.m. to get you more information. back to you. >> thank you, leslie less than 1% gain, mike. >> you know, in the middle of

the whole supply-demand equation, right? it's really a media business where they are advertising on there, and if homes are scarce and people intensely look for them, it's not bad for zillow. of course, you want turnover which lags i don't know what the drivers of the results are. >> tricky thing, too, looking at the house thing, all of the houses online, you loved, show up, oh, man, it's not what i thought. i don't like it at all >> go back to the zillow app >> exactly ones you think, oh, no good, pictures terrible, turns out that was the lucky one >> need an agent there >> that's a good point today's rally pushed market to a threweige ek hh. up next, this guy here is going to explain why that means the market returns to normalcy be right back. exshares etfs ared 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.

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so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. welcome back, another rally, dow closing higher nearly 300 points, everybody up 1%, and mike there is noticing a trend the bulls might like, mike >> yes, the market seems to be, at least today, attempting to get back to some version of normalcy what i mean by "normalcy y" is t heightened sensitivity to headlines. here's the year to date chart. obviously, here's your sort of mountain top at the january highs. this is the down trend is this a break of the down trend? that's the question folks are answering. where we got to today, 2668 is slightly above where we've been. this right here is march 21st. i think basically for the last

three weeks, we've been saw tooth chopping around the lows set in february. i think that today's kind of activity lends credence to the idea we're getting to a version of normalcy that maybe is going to build on -- look, obviously; a lot of things to prove, above 2700 for a lot of people to think something's changed. look at the vix, element of just going from the state offage station to something closer to normal this is the big crazy peak, of course, in february, but over here is when i think is most interesting, so we've been up and around the 20 level for three weeks. for those same three weeks the market is struggling, and, today, we got below 19, something magic about the levels and it shows you that basically some of the anxiety has been drained away, and also in earnings season, stocks move on their own a little bit more, not just that index, but that's going to serve potentially suppress volatility in the index level and bring vix down

further. >> sign of normalcy is it's 60 degrees outside. >> there you go. >> the unspring here in manhattan is over. >> that's an airtight correlation and could draw on a chart. >> bitcoin up too. mike, thank you very much. time for the cnbc news update. >> here's what's happening at this hour. in a rose garden ceremony, president trump touting the effects of tax cuts he recently signed into law joined by vice president pence and several cabinet members, but the president focused on manufacturers and workers also in attendance. >> we passed the biggest tax cut in reform in american history, more than 5 million workers have already received a tax cut bonus, a pay raise, or a new job thanks to these really massive tax cuts >> the interior department increased fees at the nation's most popular national parks by $5 to $35 per vehicle, but it's

back down from an earlier plan that would have forced visitors to pay $70 a vehicle that plan drew widespread opposition from lawmakers and governors from both parties. tiger woods announcing he will play in the u.s. open in south hampton, new york in june. various injuries would have not played in a u.s. open since 2015, a tournament he's won three times. we wish him the best of luck kelly, back@ to you. >> thank you very much watching the market rally, boeing a flier all year and leading the way lower, but today, up 3%, and now one major bank is predicting the stock is headed north of 500 a share from 337. we're going to get the fast money trade on that call right after this alerts -- wouldn't you like one from the market

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forecasts. >> i think that'll be the wild card for the year in terms of where fuel prices go bouncing around in the kwouquar, down, up, we'll see what happens. >> john flannery reiterating the strategy to turn around the struggling industrial company. >> narrow to the airline business, other businesses >> news president trump takes another look at our trade partnership. >> president said he was deputizing larry kudlow and lighthizer a gain of 300, 1.2% higher today. >> looked like justin there, why is the canadian prime minister -- >> would play that up, i think >> most would. boeing is up 3% today, leading the dow, and boost comes after analysts at citi said the company could be on the way to a

$500 share price and down played concerns let's bring in fast money traders to discuss guys, dan, you, boeing with the 337, a big call. >> yeah, it is a big call. i listened in, and near term, obviously, the stock outperformed the market over the last year, up 90%, interestingly, this year in 2018, it's about at the midpoint of the range, 300 to 370 you know, trading 24 times this year expected earnings growth of 17%, it's expensive priced through perfection report in a couple weeks if you want exposure and you're not in boeing, look at etf that tracks industrial space, xli, boeing makes up 8% of that to me, not as much to say on the call that makes that stock go to 500 any time soon. >> what he said. i have the baseball again. such good luck yesterday, that yankee win, watch what happened last night, kelly? >> i did not watch >> i think dan makes great

points in order nor this stock to get the 500 a share, i'm not that bright, but i know if you have a 20 multiple, that means they earn about $25 a share, and that's what them earning at close to $15.40 next year. that's significant growth. my pushback is next year's earning 21 times forward pe, i don't think it's all that expensive and when you look at the cash flow, that's talking about a stock that's huge. i don't think it gets to 500, but can it get back to 380 i submit yes >> all right >> is that it? that's it? you want to play with santoli? >> he's been muzzled we have news to get to >> oh. >> freaking news >> thank you, both, be sure to catch "fast money" at 5:00 p.m. eastern time we're going to take a quick break and come back to get you the news and dash for amazon and austin and toronto today in the fight for hq2, and here's a

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welcome home mom. with the right financial advisor, life can be brilliant. you're still here? we're voya! we stay with you to and through retirement. i get that voya is with me through retirement, i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement. welcome back to "closing bell," we're at the white house where the president today has ordered his top economic advisers to begin negotiations of reopening the tpp, the transpacific partnership, the u.s. participation we've been pressing the white house for explanation of what changed in the president's thinking about that, and we now have a statement from white house spokeswoman lindsey walters who says this, last

year, the president kept his promise to end the tpp deal negotiated by the obama administration because it was unfair to american workers and farmers. the president has conflictedly say he would be open to substantially better deal including a speech in davos earlier this year. to that end, he's asked to take another look at whether or not a better deal could be negotiated. kelly, i think the key words here is the president is open to a substantial better deal. the question is whether or not he'll get a substantially better deal, but the president is signaling openness and ordering his top economic advisers to begin those negotiations and see what they can get here kelly, back over to you. >> for sure, eamon, and, by the way, anything on syria any updates there? >> reporter: no, we did have a statement from sarah sanders moments ago. i'll pull it up here a second. finished a meeting with the national security meeting discussing syria saying no final decision has been made

she says we're continuing to assess intelligence and engaged in conversations with our partners and allies and the president is speaking with president macron and prime minister may this evening. seems like nothing is imminent in terms of action in syria until those conversations take place later this evening, kelly. >> thank you now, it's the 5th insta installment of the dash for amazon here on "closing bell," and back in january, they narrowed down candidates to 20 cities and regions, so we have turned to the mayor's, ceos and local celebrities. 14 sent them in and will be poe posted online, you can vote for your favorite. the voting will widdle the list down to a final four last week, you picked between atlanta and nashville, and it was tight. atlanta just edged out nashville, had 56% of the votes and is headed to the next round. did you vote >> no, i was not here. i was away >> that's right. i didn't remember.

>> people say nashville's becoming atlanta so i don't know if that's -- >> that's what i thought it's growing so much, but i was poo-pooed. round five, aupsstin and toronto they could have a lot in common. austin first with the mayor steve adler. >> so austin, texas, is a magical city we have a population here of people that are creative and innovative, and entrepreneurial. we have great music, wonderful barbecue, and just awesome breakfast tacos. it's a beautiful city. educated and skilled work force. it would be a wonderful place for, i'm sure, amazon would love being here we're also a city has significant challenges first among them, transportation and mobility and affordability what we're wondering is if a company of that scale, size, and

resources of amazon might be able to help us join with us to help address those challenges at a scale we couldn't do by ourselves or at a speed that we would never be able to realize >> first of all, that was clever second of all, that was the least austin pitch i've ever seen he was in a shirt and tie and an office >> laid back is austin >> that's true now to toronto >> hi, i'm john tory, and this is why amazon should come here first and foremost, deep and diverse talent pool. our welcoming immigration policy, competitive taxes, affordable wage costs in health care these are the reasons, and you know what, that talent pool is going to stay deep and diverse because we invest in making sure that the talent pipeline is full for companies big and small. now, did i mention quality of life top five in the world. ranked by others why is that?

because of safe stable neighborhoods, arts, culture, food, great sports teams, and if i had more than the 44 minutes -- oh, 45 seconds? i have to tell you, we're already the third largest tech ecosystem in north america and will be bigger and better. amazon, you'll love toronto as one of the best places to live, work, and play looking forward to have you. >> good as a newsman too that's the mayor of toronto. we heard the pitches, bring in the judges we asked them to rate each city based on tax incentives, five points a piece, 15 points total. joining us, the mayor of stone crest, georgia, welcome to you, both mayor, starting with you, in the battle of the other majors, who comes out on top >> you know, kelly, you made the comparisons last week, and i talked about what you should do when you have an opportunity to be on cnbc, and here's what you shouldn't do, don't tell people about what you don't have in the

city, particularly when those are the things amazon is looking for. >> horrible. horrible >> from austin >> unbelievable. >> to help him solve the challenges >> no, no. terrible >> you pick toronto? >> terrible. i pick toronto as a matter of fact, i owe him an apology this was the worse toronto was the best >> okay. >> toronto was the best talking about what he had to have and what was there and going on. toronto, hands down. >> all right >> senator davis, what about you? >> well, i have to admit at first i'm a little bias, i'm from austin, texas i live in austin, texas, and i think it's an amazing city i did actually, trying to be as objective as possible come down in favor of austin on this particular head-to-head. primarily because toronto -- >> i don't know. i don't know if you have any credibility. you're a texan >> talk about objective factors. toronto is not offering any tax

incenters at all, and in spite of what the mayor said about the cost of living in austin, the cost much living in toronto is exponentially higher, much more affordable to be in the city of austin it has happen incredible culture. >> all right >> and it does have the amazing breakfast tacos. >> yeah, but housing is expensive. thank you, both. they've split the vote, one for austin, a big one for toronto. mike, break the tie. >> i think i love both the cities i think toronto is probably an unlikely winner of the ultimate competition, but what is interesting is, of course -- >> you think they win the whole thing? >> no, unlikely. >> oh, got it. >> what is interesting, of course, what's based in austin whole foods. >> true. >> amazon bought them. >> oh, right, of course. >> infrastructure structure piece of it. i agree austin doesn't need amazon because it's already very crowded, very concentrated with tech talent, and expensive a lot of traffic >> listing all the problems. go to our website to cast your vote for the winning city.

now, china's stock market has had a tough month, down about 4% early on. there's a bigger risk to asian markets than the trade war we've been talking about, and we'll tell you about that next ahead on "fast money," bitcoin rallies today. been awhile since we tkeald about it what's behind the big move a big investor will break it down - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

china is expected to release march trade figures tomorrow and this will be the first month of data since the white house announced tariffs on steel and aluminum imported from china frederick, is that the biggest risk to chinese markets?

>> yes obviously trade restrictions are a bit of a headache for china. it's not going to impact the numbers for march yet significantly but it's certainly something that as we look into the next few months as deadlines approach, that's something investors are focussed on at the moment. >> frederick, i guess there's almost two camps in terms of thinking about how china might respond to the trade talk. one is that, you know, they have a high threshold for pain, they have a lot of ways to retaliate one way or the other and not give much. on the other they say well, president xi has many domestic priorities, can't afford to have trade slow down very much so what do you think is more persuasive >> well, certainly growth remains a priority, but the export restrictions are not really going to derail china's expansion. most of the models suggest that actually tariffs would have a fairly minor impact on growth in

china. it's a very closed economy, in fact the other thing that's playing into this is not just a growth risk, it's also this xi jinping has gone out to various global audiences and said, look, we're open for business. we are really here to play by the rules and so that kind of limits also the retaliation, if you will, from the chinese they will try to project themselves as being open for business and so i think the response is going to be very pragmatic, very muted in many ways, yes, they'll stand up for their rights but they're not necessarily going to let things veer out of control, if you will. >> final question, what do you think happens with china's currency from here >> it's going to remain stable we had -- the chinese are very comfortable where they currently sit, they're opening inflow channels, we expect money coming

into china's capital markets on the equity side in particular. yes, a trade to exports may slow at the margin but overall the chinese currency sits comfortably where it is and if anything it could strengthen a bit further because remember the dollar remains weak and the flip side of that is slightly stronger chinese currency. >> all right, we'll see. there have been reports they might weaken it as this dispute goes on. time will tell frederick newman, thank you for joining us, hsbc's co-head of economic research. we'll check on your afterhours moves right after this obvious. sometimes, they just drop in.

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let's get a check on the news making headlines after hours. we start with broadcom shares rallying 4% after the company announced a $12 billion stock buyback. this after its failed bid for qualcomm zillow on the move higher issuing strong revenue guidance for the first quarter -- i should say it was moving higher now it's down nearly 7%. the white house confirmed president trump has asked trade rep robert lighthizer and larry kudlow to take a look at whether

a better deal on tpp, the transpacific partnership trade deal can be negotiating. i want to circle back to zillow. now it's down substantially and they are announcing an interesting new program. >> on first look it was about reaffirms guidance but they are expanding a program called instant offers where essentially they work with agents to allow a home seller to get an instant bid for their home zillow will participate as a direct buyer and seller of homes, zillow itself that may be why the stock is down it's putting up zillow's capital to buy. >> that feels like a huge deal zillow is going to start buying houses >> i don't think it will be their main business. but it's almost to serve their customer base which is the real estate agents. it helps ats get people who want to sell their home to sign up with an agent and can facilitate it it reminds me of wall street committing capital.

>> and they have to data to pay the crest price. because that zestimates are not always -- >> well, them in conjunction with the agents and perhaps you get a discount if you say in two day this is deal will be done, someone might have an incentive to take a lower price. >> this explains why the market is taking it like it is. that's an interesting move and there's so much competition in the space. >> and it seems like a measure based on the fact that there is this logjam. >> and we're testing that this spring that's the news on zillow. shares are down. mike, thank you. as always, "fast money" starts right now "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee tra tonight on fast, check out this chart. bitcoin is surging, heading back to $8,000. what is behind this major move top bitcoin investor spencer

bogart of blockchain capital will be here and tell us why today was the start of something big. and the ceo of general electric speaking out last night to cnbc. we'll tell you what he said that has all of wall street on edge first, we start off with the market rally the dow surging more than 350