visit trump so i know the point has been made and a lot invested in the relationship. he'll be looking for an ally against china. >> yeah. absolutely all right. thanks for watching "power lunch", and "closing bell" starts right now hi, everybody, welcome to the closing bell, i'm kelly evans at the new york stock exchange >> i'm wilfred frost upbeat earnings, dow up 280 points at the high, traveling 400 points in two days discussing what you need to know approaching the close. >> nasdaq up 1.7% today. we begin with the markets and our reporters following the money. we are at the nasdaq with bertha and bob is on the floor of the exchange >> you take syria out of the equati equation, out of the headlines, and china trade wars from the

headline, and market turns inward, naval gazing, looks at earnings and likes what it sees. united health, a big health care company moving nicely today, they raised full year guidance anthem's up. humana is at a 52-week high. johnson and johnson, come here, scott, confirmed their numbers here they had a good number overall it's not doing much, but, still, overall, not a bad report itself i think the important thing is other sectors that were down on the china trade wars are holding up very well, so, again, the poster child is boeing here, decent day up five, almost 40 points they sell off in the close we'll watch this to see, but the last week and a half, that's been a little bit of an issue. a lot of people are asking me, where's goldman sachs, right over here, what's going on with the banks. goldman with good numbers

overall. the important thing here, there's a lot of issues for the banks floating out there number one, you got anemic loan growth, in general, right, across the board then we got a major problem with the yield curve, of course, banks make money, and the important thing is we have a flattening yield curve the spread between the 2 and 10-year example of a yield curve is 43 basis points believe it or not, that's a 10-year low, a major problem for banks out there trying to make money right now. a lot of fighting for deposits they have to pay up for the deposits as well that's another issue for the banks. overall, though, markets like the earnings reports so far. guys, back to you. >> bob, thank you very much for that meantime, tech seeing strength in today's session we go uptown to bertha coombs. >> reporter: earnings story as well no stranger scary thing than netflix's results and strong subscriber growth powered stock today to a fresh historic high providing a halo effect on

rivals like amazon and alphabet, of course, the parent company of hulu they moved above the 50-day moving average microsoft is strong as well. a dollar above the march historic high. halo shines on cloud names, historic highs in intuit, f5 also high. twitter up after an upgrade from morgan stanley now, the stock snaps a four-day losing streak, but take a look at twitter's performance versus facebook year to date. facebook, of course, struggling of late with the privacy and third party data issues, but twitter is not immune to that. twitter's highest margin business is selling data to third party buyers that accounts for 15% of its revenues. both firms report next wednesday. kelly? >> all right, thank you.

again, remarkable day given the moves in netflix and in the nasdaq more broadly. talk tech now. joining us cnbc's michael santolli and steve grasso. netflix, it's not a tech move, but consumer discretionary >> that's right. more of a media company than anything else. >> that's right. it's not going in the new staples? >> no, in the new communications services sector. >> is it >> in a few months, netflix, facebook, and google will go into a communications services sector with the cable companies and leave technology to the microchip guys and the rest of it look, i think the muscle memory is strong in terms of the market getting back into the big tech names when they feel like anxiety is drained out of the tape overall, it's a very low key 1% rally today. i will say, it's also quiet. the vix is down. it's methodical. that could be both good and bad, but the s&p 500 keeps passing these little tests, and we're

halfway between where the intra-day low wasin february 9th, and the all-time highs, so i think it's sort of earning back the benefit of the doubt even if it doesn't have it all >> steve, overall, considering the call from netflix and things of that, there was one clear point, comparing to facebook, the implication was facebook, they are not an advertising revenue model, but subscription based model. does that deserve a higher premium in terms of milultiple? >> i don't know. i would say i don't think the question for me is does it deserve a higher premium, but i think the question is did it deserve to be sold off the same way that facebook was sold off, and i think the answer to that is no. when you look at them all traded as one lump stock, that was wrong for the moorarket and for investors to do that, and you're seeing that in the price today >> signs they are not doing that any signs that fang is breaking up >> well, if you look at what fang is, there's no sign -

>> pulled together >> right it's just a theory >> it's just something, first o all. jim cramer isolated these four stocks i can't tell you how unlikely it is to nail the four that actually worked for five years, so that's something to be said for that >> that's true >> megacap tech so they move the market - >> put nvidia and adobe in there. it's a still of stock. a few months, yes, there was separation and in favor of amazon and netflix, and at the expense of google, alphabet, and facebook, and what's the difference between them? well, netflix and amazon, customers decide to pay. it's a transparent transaction opposed to advertising support >> we always compare these stocks to each other as we had done for the last couple minutes. should we compare netflix more to the traditional media companies, and does that mean netflix's pickup - >> sell it >> yeah. >> sell it

if you compare to a media company versus a growth, it should be -- >> should it be compared >> it's a growth stock this is what i argued constantly since netflix started with this idea, let's short it, valuation does not make sense. i don't care what the pd valuation is >> you have to care. what is it, 98 >> start talking about amazon, if you cared about valuation, you missed that. >> what about the basis you can legitimately defend. >> look at netflix okay, penetration in the united states is at 50%, whatever the number is that you want to go withings and a broad at 10%. there's a lot of room for growth there. now, i don't pay for netflix you know who does? t-mobile talk about a sticky sub base, when they pay for your netflix, that more and more people get their netflix paid for, they are not cutting out the netflix -- >> i think it's a valuable comparison, but what the conclusion is that the market is

suggesting that net fliflix is n to slowly or rapidly eat the rest of the media. you can make a case that's not necessarily going to happen any time quickly, and now that the market caps of netflix and disney are about the same, you have an interesting basis on which to make that call. >> thank you very much >> thank you >> great to have you both here, mike, steve. >> with us now, a man at the top levels in washington in several key roles. >> many believe washington and the united states are as divided as ever. leon panetta served as white house chief of staff, secretary of defense, head of the cia, and director of the office of management and budget. today, we tackle cyber security, syria, and the prospect of major changes for congress this november >> we're leaving because you don't want to deal with trump anymore. >> i'm grateful he's given us this chance with the election. >> and leon panetta is live today from monterey, california. thank you for your time. >> nice to be with you >> i want to begin with you just

heard joe leave off there, speaking with current speaker paul ryan this morning how much of a risk is there that our republicans are about to lose control of congress in the midterm elections, and what are the threats to the president and his agenda if democrats claim it, do you think >> well, i don't think there's much question that usually two years into any administration, you'll see an impact in terms of the party in power, and i think that, from all the polls you look at, that that looks likely for november how much, how big a wave it is i don't think anybody really knows at this point. as to paul ryan leaving as speaker, you know, i -- i'm a believer having been a member of congress that elections are won based on candidates in each of the districts, and how effectively they campaign to the

constituents in those districts. i'm not sure whether paul ryan's leaving has very much impact in terms of what happens in november >> mr. secretary, i guess it's fair to say the president is not a traditional republican is it possible that we're overestimating the impacts on what's able to be done in the face of a democratic congress given he's already pushed through certain parts of his agenda already, perhaps it makes things like infrastructure more likely >> well, i'm a believer that checks and balances works in our political system, and if the president should, in fact, have a democratic house and senate, if he's smart enough to negotiate with the democrats, he could get some things done i'm not a believer that if the democrats take charge that the president will get absolutely nothing done

it will depend upon whether or not the president is really willing to deal with the opposition bill clinton did that with a republican congress and he did it pretty effectively. >> james comey is on a promotional tour for his book in which he's going out there calling the president all sorts of names and insinuations about the tanning bed behavior and much more than that. this is a man who still would be fbi director if he was not fired right now. do you think he's hurt the standing of the fbi in doing all of this? >> well, i'm a little concerned about the level of rhetoric going on generally i think the bar has been lowered, so that that type of discussion seems to happen every day. there's no question that it does have an impact, i think, on the reputation, certainly, of the fbi, but for that matter, on the reputation of this president, whatever's left of it, so it's just not a good time, and i

would prefer, frankly, that all sides focus on some of the very important issues that are facing our country and facing our world. that's what they ought to be talking about. >> mr. secretary, one phrase we hear from the president fairly often is the quality -- about the quality of the u.s. military, about being the greatest and most powerful in the world. what's your take on how powerful the military is relative to certain other countries today versus a decade ago. have they, in fact, played catchup, particularly when you consider the ability to attack the united states with cyber threats these days >> well, i don't think there's any question that the united states military force is the strongest on the face of the earth. we're the strongest military power on earth for a lot of reasons. basically our men and women in uniform probably at the top of the list, but also our technology and our capability. we did pay a price with the

budget when the budget cut the defense budget and congress implemented the sequester which was a cut across the board i think it impacted readiness of our military force, and my hope is that as a result of what congress did, that there will be an effort now to repair that damage and be able to strengthen our military because we are going to face an awful lot of threats in the world there's a number of flash points that are out there, and in particular, the threat of cyber war, which is the battlefield of the future that, all of that needs to be addressed. >> and, mr. secretary, what should the threshold be for u.s. interventi intervention cyber? conventional slaughter like in syria, chemical weapons being used, seeing a response to, what

threshold would you like to see? >> well, i think, the united states is always taken the position that military force should be the last option, and i believe that that should be the case as well, but the fact is that just as we saw with syria, there comes a point in which the president of the united states has to make a decision to deploy our military in order to make sure that our credibility is protected in the world, so the use of our military has to be used with good judgment and discretion we have capabilities we have remarkable capabilities to be able to address a particular situation whether it's counterterrorism, whether it's the kind of military strike we saw the other day, and whether it's dealing with cyberthreats we have remarkable capabilities, and it's up to our generals and to the national security team and the president to make sure

that we use that kind of four effectively and with good judgment >> mr. secretary, are you concerned that things could elevate in the war of words currently with russia given issues in syria, given issues in the united kingdom as well do you think things could elevate to a military level any time soon? >> you know, there's no question we're in a new chapter of the cold war with russia russia's been very aggressive going into the ukraine, going into crimea, going into syria, implementing the kind of cyber attack we saw in the last election, doing the kind of impact on russian agents in britain of poisoning them with nerve agents i mean, there's an awful lot of steps the russians are taking to be very aggressive, and i think part of it is because they read weakness into the united states as well as our allies, and putin

has felt that he can do those kinds of things. i think it is very important to make clear to putin and to russia that there are lines that we will not allow them to cross. we got to deal with putin from strength, not from weakness. if we do that, if we are very clear that there are lines that cannot be crossed by the russians in the world that we're dealing with today, then i think it opens up the opportunity to have discussions with putin, with regards to issues, but the only way you deal with putin is from strength, not from weakness >> absolutely. leon panetta, thank you very much for joining us today. >> nice to be with you >> appreciate your time. we have got just under 45 minutes to go before the close, and we are up 239 points or 1% on the dow the s&p's up a little more than that, and nasdaq leads the charge up close to 2%.

more ahead still as "the closing bell" is just getting started. straight ahead, a major air scare for the people on this jet. see what happened next plus, a top microsoft executive of the new and big break between tech companies and government over cybersecurity. this is the "closing bell" with kelly evans and wilfred frost live from the new york stock exchange cnbc sector sort is sponsored by bsh --- --- as a control enthusiast, i'm all-business when i travel... even when i travel... for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges. what can i say?

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xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. breaking news on the southwest plane that made an emergency landing in philadelphia phil lebeau has more on what happened philadelphia >> they wrapped up the initial press conference explaining a few details about the emergency landing and this engine failure on the southwest flight that was going from laguardia down to dallas one fatality is not reported with this accident we assume, we don't know for sure, but assume that it was the passenger who was sitting next to a window that was blown out when a piece of the engine,

after the ingengine failed, a pe flew into the window which was, five to seven rows behind the engine, blew out the window, and then the shrapnel fatally injured that passenger again, we're waiting for final details regarding that here is the father-in-law of one of the passengers explaining what his daughter-in-law saw on the flight when this accident occurred >> caller: apparently that engine blew, first sign something was wrong, obviously, a loud noise, and then a window blew out near the engine, and a woman was sitting close to the window, apparently almost taken out of the plane, pulled back in, and fortunately, there were nurses on board and emts and couple people able to administer cpr immediately. >> horrific scene in the air on

that southwest flight. what happens next? the investigation is now focused on that plane in philadelphia. the faa and ntsb have investigators on scene focusing on the cause of the engine failure as well as why did the debris from the engine get shot out and some of the pieces shatter that window on the plane. by the way, this engine is one of the workhorses of the southwest fleet. it is a gesaffron cfm 26 there's more than 13,400 in service. this one in particular has been in service since 1997, and, again, investigators are down there. look at shares of ge that builds this engine as well as saffron, and there's shares of southwest airlines down more than 2%, again, one fatality on this incident that happened after takeoff from laguardia, guys, back to you.

>> yeah. we're so sorry to hear that, thank you, phil, very much, scary and very sad brad smith is speaking at the rsa cybersecurity conference this week in zprsan francisco. the company announced a new cybersecurity accord with 30 other tech companies like oracle, cisco, and hp. brad smith joins us from one mark with our josh lipton for more on this josh, take it away >> thank you brad, thank you for joining us >> thank you >> digging into the tech accord that kelly mentioned one part of the pledge i thought interesting, you say you won't help governments launch cyberattacks against innocent citizens how are you going to enforce that, brad >> it's a set of principles all 34 of the companies have come together, have said we will live up to, pledges us to strengthen defense to protect customers everywhere and says we won't help governments launch cyberattacks, as you said, against innocent citizens and enterprises. this is a world where we see

governments do that, and we're taking a principled approach saying that's not something that we want to support >> and how far would you take that, though, brad let's say, you know, you come across a government that are using your technology to attack disdance, and now that you signed the pledge, does that mean microsoft promises to yank that contract and pull the product? >> i don't think we can fully control how everyone uses the products we provided microsoft word for decades and people write good and bad things with it when it comes to people asking for help from our consultants or services of that kind, we can pick and choose, and we can be principled, and we are >> if i may jump in and follow up on this, brad, and we thank you, again, for joining us, so are you guys going to hold the country responsible? so there's been times when russia, for example, said, okay, they might have been russian hackers, but not acting on behalf of the russian state.

what distinction are you drawing in those cases when it comes to your response in the behavior? >> it's interesting. i think increasingly the tech sector and governments have become more sophisticated in attributing cyber attacks to those responsible. so on the 19th of december last year, there were actually six countries, including the united states, where the governments attributed last year's wonder cry attack to a group connected with the north korean government similarly, this year, the white house made an attribution about last year's attack, and one never holds people necessarily responsible for their government, but one does have the ability to be very careful in what one does with the government itself. >> so you might hold the government responsible, which is interesting. at the same time, i see here you say you would always commit the companies to come to the aide of any nation on the receiving end of such attacks. does that mean, so, for example, the irs website is down today, could be an influx of demand

okay, but if something like that were targeted, does that mean the tech companies would immediately come to the aide of the u.s. or any other country, maybe the ukraine on the receiving end of these attacks >> i believe that actually is the most important thing we're doing with this new accord we are pledging that we will work together and take new steps to protect every customer everywhere, and we'll do that in many ways including partnering with each other and really investing to increase the cyber resiliency, if you will, of governments and countries around the wonderful. look at the attacks over the last year, i think it's that improved defensive capability, including here in the united states, that we really need to drive forward. >> all right, brad, thank you so much for joining us today. appreciate it. >> thank you >> kelly, back to you guys >> all right, josh, thank you very much. we should add google, apple, and amazon, i believe, have not signed on to this yet. some of the biggest names in

tech are still on the sidelines in terms of figuring out the appropriate behavior here. 35 minutes to go dow's up 254 now at session highs. >> ahead, new numbers on what u.s. companies are doing with their share of the corporate tax cuts we're back in a couple minutes don't go anywhere. - 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

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with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. welcome back to "closing bell," we're in west palm beach, florida with warm words of welcome here from president trump to japanese prime minister shinzo abe who is meeting with

trump today at his resort in mar-a-lago in palm beach, florida. the president said he gave his blessing for the two koreas to seek an official end to the korean war which, if you remember, ended in a cease fire, but not an official peace treaty back in the 1950s. the president said he's given his blessing for that. he also said he's looking forward to a meeting with kim jong un, the north korean leader, and demonstrated a show of unity here with the japanese leader this is what the president said moments ago. >> japan our ourselves are locked and we are very unified on the subject of north korea. we will probably be, depending on various meetings and conversations, will be having meetings with kim jong un very soon it'll be taking place probably in early june or before that assuming things go well.

>> reporter: and, guys, there's questions about where that summit meeting with kim jong un will actually take place physically there's questions whether kim jong un can leave the country. there's speculation he fears there's a rival that would step in while he's out of the country and unable to resist any takeover attempts, so the negotiations over that are fraught with a lot of uncertainty at this time the president was asked there where this might happen. he said they're in discussions over five different potential locations for that event, but nothing determined as of right now. the president saying it might happen, but also might not, guys, back over to you >> still significant, eamon, talking about an official end, meaning pulling u.s. troops out of the dmz you know, we'll see how much the u.s. feels comfortable putting on the table, but that he raises that tells you quite a lot eamon, thank very much >> reporter: you bet meantime, checking in on market movers, united health

trading higher on the heels of earnings and revenue, which beat this morning it was boosted by strength across all the companies' businesses the insurer raised full-year earnings outlook stock up 3.4%. meantime, pivotal research upgraded disney from halt to sell the mouse house appears best positioned among video centric media companies, and that stock is up 2.2% how about today's closing bell quote of the day? coming curtesy of the "wall street journal," stop staring at facebook and twitter and do something useful with your life like spending more time in a pub. >> this quote is in reference of the the move to delete facebook, instagram, and twitter accounts for all 900 pubs across u.k. the company ceo says they are against conventional wisdom that they are a vital component of a successful business. i love the tongue in cheek in this, not least, of course, because we should be doing other

stuff, but should be more in the pub as well. >> you can speak to this - >> what, the pub >> is that the name of the pubs themselves or a holding company? >> it's the holing company, but some of them are known as a weatherspoon because there's a bit of brand image as well ones that could have traditional british name like the frog and crown or whatever. >> possible i went to one of those, but this pub already made a point of not having televisions and other entertainment aspects to really make people focus on conversation they are having there with one another are they banning cell phones next >> not in all of them. maybe in certain types of pubs, but either way, i miss the pub >> i will say, there's nothing like the u.k. ones >> a good british pub i miss, but it's a fair point. maybe we peaked in the idea of, you know, must have publicity on those platforms. maybe not. focus on the core product. >> we'll see >> if there was a good british pub here, i would delete facebook and be there instead. time for the news update with sue

>> thank you so much count me in if you open a pub. this is what's happening at this hour, everyone we continue to follow that developing story involving the emergency landing in philadelphia the ntsb reporting one passenger on the southwest airline flight was killed, but seven other passengers were also injured the dallas-bound flight ran into trouble after the engine blew ripping a hole in the plane and blew out a window. the supreme court ruling in favor of immigrants convicted of crimes it says the part of the law that defines what makes a crime violent is too vague to be enforced now making it more difficult to deport immigrants with criminal records. wildfires in colorado engulfing three homes. strong winds and warmer temperatures are making things worse in the southwest and tesla temporarily stopping production of its model 3 electric car at its freemont, california plant for up to five days as part of a planned timeout to improve automation and address what it calls bottlenecks. employees are taking vacation

days or staying at home without pay. you're up to date. that's the news update this hour back downtown do you >> sue, thank you very much for that we got 25 minutes left of trade, and we're up a percent or so on the dow, above that, the nasdaq leads the charge, nearly up 2 and 4% supreme court case about taxing internet sales. if you're an online shopper, the outcome could imctouwaetpa yr ll and commerce in this country we'll get the latest when we come back.

welcome back to the closing bell great day of trade, led higher by the tech and consumer discretionary sectors which carries out here the nasdaq up a full 2%, s&p up 1.3%, and dow up more than 1% the only sector in the red is financials, despite goldman sachs' headline beat back to you. >> thank you very much let's get to the closing bell exchange now, joining us is brent, chief investment strategist in northwestern mutual wealth management, and holy, and peter costa president

of the empire executions holly, interest rates are taking center stage today the way that financials are trading poorly over on the equity side has people scratching their heads about it >> it does i think a lot of the reason that the banks are not doing as well as we are seeing the yield curve flatten further, already flattening immensely, but it's going to continue, and a flat yield curve does not help the banks. they tend to borrow short term they lend long term. if that curve is flat or if it even inverts, which it looks like it could, that does not help them, so despite the stock market going higher, that's probably why we're not seeing the banking industry do as well, and regardless, the fed presidents and governors keep talking about the yield curve flattening is not a big deal, doesn't indicate anything, but longer term, it really does. we're not at recessionary levels at this time, but it could indicate a problem down the road, and i think that's why you are seeing bank stocks not doing as well. >> wait, bank stocks not doing

well, so who won the bet >> well -- >> who won >> well, let me say -- >> the last time you were here going into big earnings. >> i'm just going to admit defe defeat it was a partial defeat, though. >> i think you're generous two things we bet on, one goldman did 30% trading, which it's done. >> which is great. >> making it more of a miracle that stocks are down, but sector overall, i thought would be up 10%, so essentially we buy each other a beer >> i'll never turn down a beer >> talk about the performance from goldman sachs today every -- the dow is up aggressively >> yes >> they beat on trade, best trading for three years, so what's beginning on? >> i -- i have to tell you, will, i'm completely shocked, expecting the stock to be up after seeing the numbers and saying, you know what, the best trading quarter they had in over three years, every group is up, i think that what people are concerned about is the investment banking, even though

the firm has come out and said positive things about it, there's not been that much -- you'd think there was a lot of ipos really have not been many big ipos, and the mergers and acquisitions part dropped down they are not the no. 1 m&a shop anymore. so i think that some of those things are weighing on people a little bit to me, it was a surprise i think, you know, if anything, i'm a buyer here >> i think this guy likes it he's not corrected the fact you called him "will" rather than "wilf". >> i heard that, but i wanted the beer first >> i never short that responsibility >> financials, of course, being the one sitting out today, but dow's up 241 point, and we'll hear from other companies like the likes of ibm after the bell, netflix up huge on its results what are you watching? >> well, i think the economy continues to do well, and that is a balanced earnings market. one thing you mentioned the falling rates and whatever else,

and i think there is a fear that the economy is actually slowing down i hear quite a bit about the atlanta fed coming in at 2% or below, and i wonder why people don't talk about the new york fed at 2.8 or at 3.4%. i think when you look at it, the one thing holding the market back a bit is this impending growth fear as if i'm making a mistake, and in the coming quarters, the economy will continue to go up. >> all right so you don't think those concerns are warranted >> no. i think it's been overplayed, and i think that's why rates market is moving down today, and i keep hearing about the yield curve tightening, and i know that's normal. in '94, we got to 8.5 basis points positive, and next recession for six years. >> wow that's a good point. we are all talking about -- we're scarred. be honest, anything that correlates back to 2006 and 2007, i.n don't want it, peter. >> i don't you you have to worry about that, but at some point later on in the year, there could be a slowing down of the economy, but right now, everything's fine. >> all right

guys, thank you, all, brent, holly, and peter >> thank you >> talking about beers and pubs today. >> i -- >> always on the mind. anyway, we have just under 20 minutes, 17 before the close great trading session, particularly for tech and consumer discretionary >> we'll continue to look at the rally with victoria fernandez for smart global investments, and hightower, talking about the interesting moves when we come right back

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too.

wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. welcome back to the "closing bell," goldman sachs reported earnings beating the top and bottom line, but despite that, it's the dow's biggest decliner today. here's jim cramer's take on the financial sector earlier today >> this is about as good as it gets goldman sachs, return on equity

really good. if during the conference call this stock goes down, i don't know what to say i have to look at other stocks because that's it. morgan stanley won't be able to save it. this is what i wanted to see better than expected on about every line if they don't like this one, they don't like the group. >> joining us now, victoria fernandez from global investments, and elliot, ceo and founder of hightower announcing today they will acquire private wealth management business good afternoon to you both discuss the aspect of goldman sachs to begin with, victoria, in terms of very strong numbers, but the sector and the stock is trading down is that worrying for the market as a whole, for the sector as a whole, or just for goldman sa sachs? >> the market as a whole and expectations for earnings have been set so high i think you look at the citi surprise index, that's been high lately so as the bar has been raised, yes,

they are great numbers coming out from all the financials, but i think people are looking even for more, and so they are pulling back a little when they are not getting everything or when they get something that's a little less, like loan growth. >> do you agree, elliot, or more goldman specific >> i think she has a great >> in terms of goldman sachs, itself, one criticism people suggested is that they didn't buy a bank or a loan book back in the financial crisis. your buying a private business today, and talk us through the reasoning behind that. >> sure. i think jim got it right earlier talking about banks making money in the way they should be making money, but it was missed in the analysis is a massive secular shift happening where assets are leaving some of the big institutional firms that are moving to the independence space, and we're one of the largest drivers of the trend and combination of the two firms represents a movement where people are gravitating towards fiduciary model away from models with conflict of interests >> looking for any softness there?

>> eventually. >> those are the companies that have traditionally held this business, and you're talking about it continuing to move for. >> that's right. what we'll start to see is the big manufacturing companies have to come clean and declare themselves as manufacturers of product where the servicers that are fiduciaries like us declare ourselves as fiduciaries with service because we're not selling product or running fixed income, but making money for the client >> albeit, the likes the goldman have good investment management performance. this quarter, we see morgan stanley tomorrow in terms of the sectors, therefore, where, perhaps, the expectations coming into earnings seasons were not as high, where could we see outperformers? >> industrials sectors people pulled back on industrials and retail because they were not doing as well, but those are areas we're trying to pick up a few names, find companies that have strong fundamentals that don't have that high expectation, and really kind of feed in there and

see if we can't add them to the portfolio. >> all right, guys, thank you both >> thank you >> victoria and elliot joining us today >> 11 minutes before the close, a good session apart from four of the financials, nicely higher pretty much across the board >> different set of earnings after the bell today, ibm united, and csx. what to look for next. [phone ringing] need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. experience a blend of...and raw power,nship... engineered to take the crown. presenting the all-new lexus ls 500 and ls 500h.

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now you can get it, too. welcome to the party. welcome back, a sense of what to look for after the bell, earnings from csx, ibm, and united ibm up better than 2%. >> shares of csx have moved on average of 3.6% either up or down over the past eight quarters after earnings were released shares of ibm typically move 4% up or down on their results. united moves around 5.8% after earnings now we are monitoring releases and bringing you the results and instant reaction to that as well as right after the bell tomorrow, wilfred is interviewing mr. lloyd blankfein, fresh off this morning's earnings report with so much to discuss about market's reactions and concerns. >> absolutely, certainly on the

earnings and share price performance and first interview since all that discussion around succession planning, and, of course, david solomon promoted his sole president and ceo >> what time >> 8:30 a.m. eastern time tomorrow up next, the closing count down at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. - 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.

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it's been a great session. we are higher by over 1% for the dow 225 points, near 2% for nasdaq, and s&p in between nasdaq opened higher, steadily improving throughout the morning and close to the highs of the day and not much to sell on the bell let's look at the sectors as you see, only one is in the red, and that is financials a slew in the positive territory led by tech and consumer discretionary both up in and around 2%. bringing in bob pisani, a split screen of the banks today, best year of roe and best trading performance in three years extraordinary to see share prices down 1.6% yes, other banks are shorting, but nowhere near that. we'll ask lloyd that tomorrow morning. >> looking forward to hearing more about that, but in general, we have been talking about fairly anemic loan growth for the banks. we have been putting up all day long that chart of the spread

between the 2 and 10 year, bar short, lend long, and the flat lend yield - >> nay are not down like goldman sachs, a factor -- >> not as much, but they are not doing much it's been fairly flat, and other earnings that have been coming in, other companies have been doing a little bit better overall, and another thing mentioned, the big texas bank is reporting. there's been a lot of competition for deposits, and they had to pay for. this is called deposit bait to get nerdy about this they are paying out more on deposits, and it was mentioned this morning in their note, in their commentary, and i think is a factor overall, and, remember, people have complained for years about those deposits we don't get anything on them. they are starting to go up slowly, and that story is playing out in the banks >> when they report on friday as well sticking to the positives today, bob, tech and consumer discretiona discretionary, netflix a driver of that. >> a company like netflix, $140

billion market cap and see growth of 27% subscriber growth, that's dramatic like that, those are really wow numbers to take a look at. they are firing on all cylind s cylinders. it's amazing you can say, oh, they can't keep that growth up there's potentially, you know, hundreds of millions more people that could subscribe to that, so they are really on a tremendous upswing, and i don't see any potential downside for them at all. i think interesting tomorrow, get morgan stanley, more regional banks, u.s. bank corp. is reporting, and that's where i want to find out a little bit more about how this whole issue about the deposits are playing out, and what they have to say about the yield curve because i'm sure that's coming up now that we've seen banks underperforming for the last several days, but overall, you take syria out of the headlines, you take china trade out of the headlines, and the markets turn inward, up five of the last seven days on the s&p 500, and most in anticipation of earnings >> earnings tonight as well with ibm after the close. >> well, of course, the question

is, can ibm start growing their revenues significantly, particularly from anything like artificial intelligence. >> those earnings minutes away, and the bell, though, as you can hear, ringing already, 223 points higher on the dow the nasdaq and tech sectors leading the market higher today. ringing the bell here at the big board, mfa financial and at the nasdaq, connect one bank corp. back to kelly for the second half >> thank you, wilf, welcome to the closing bell, everyone, i'm kelly evans. dow added 213 points, about 400 points of back-to-back gains here, dow up 1%. it was the underachiever today, and goldman, a price component, not doing as well on the session. we talked about that last hour after its results this morning that might have hampered things a bit, but united health strong, 1% gain of 28 points, 27.06

this, and nasdaq up there, you can see the drop in goldman, down 1.6% on the bell, and united health with earnings this morning, up strong, 3.5% russell 2,000 added 16 points today. it was the nasdaq with a 10% move in the netflix that led the way today, up 1.75%. we got more earnings coming our way as well after the bell today, and we have a reporter standing by for results. josh lipton covering ibm for us, and fill lebeau with united continental results, and sema with csx see you in a moment. joining me now, michael santolli here at post nine with seth from douglas c. lane and associates, and bill smead is here as well welcome, everybody we mentioned movers in the markets. talk broadly about the netflix move interesting, mike, a huge pop that lifted the market

>> to the upside today that's a lopsided positive number, but reminded people about long term secular growth, obviously not applicable to every company, but netflix, boy, expectations were high the stock was up here year to date going into it, and it just sort of shows you up 10% or close to that exactly how good the quarter had to be to justify that, and it did now, it's not far above its old high in march, so you can't say this is the start of anything big to the upside for netflix, but i think it's interesting seeing last hour, the muscle memory of going back to tech, people feel better about the market and volatility coming down, but it's in place, i just want to say the s&p 500 has kind of pulled itself back up into the neutral spot right halfway from the lows to the highs of this year, and we'll see if it can carry further from there >> all right we start to get differing companies reporting, but in the meantime, the financials, been through the bulk of them, awaiting morgan stanley, and market reaction was not great. >> it was not. interesting, take the netflix

versus financials, they did well on the numbers, but going forward, the examinations were just not there they were just not met just -- and partially because of the interest rates we are k hooihoo i -- we are looking at. >> if the yield curve steepened rather than flatten, so people are aware, the difference between the two year, it moved so high today, over 2.4%, a eight year high, the difference between the two year and ten year was down to just 0.4%, small as we've seen it >> what's interesting is the market looks to say, the fed is going to stay on at least three rate hikes what's that mean for banks a flat to inverted yield curve, which is actually negative fethm and the market >> a precursor - >> to the slowdown the rotation could have been short covering and other part was, hey, if we get growth, we go back to the sector we liked before and forget what happened to facebook and amazon

here we go again >> the analogy from last hour, talking about the flattening the yield curve from 2006 and 2007, a horrible crisis, 1994, you had that spread go down to nothing too, and then you had a rally, by the way, to continue. >> '94, a stealth bear market. >> that was when we raised rates. >> market struggled, on the cusp of fighting inflation, a near miss, almost negative gdp quarter in '95 it was not all roses >> and just to go back to 2016 when the ten-year was 1.74, here we go again, and unless you were in staples and utilities, nothing else worked. look at other indications. the market is shooting first, asking questions later there's indications why the ten-year is where it is because there's such a global demand for debt at this point too >> bill, i know you feel generally optimistic about the u.s. company, so do you shrug off what's happening in terms of yields and even the effect it's

having on the banks? >> yeah. i think a bigger subject than the fundsmenta menfundamentals the psychology in the market the stocks did well from election day in 2016 until the end of january they were on fire. we own them. we know what it was like it was great last year it was the only way a value guy could survive in a market that has just been growth what did today look like mike will tell you, it looks just like 90% of the good days in the last three years, right the fang guys were fanging so, the banks got too fpopular. look at the big money poll the banks were the most likely industry to be the best performer in the next 6-12 months >> wow, all right. >> almost never happens that the one they think will be the best is the best. >> yeah. >> it's always the opposite. >> i'm still thinking about

whether "fanging" is a technical term jumping in with earnings from csx and how the railroad operator is doing. >> a beat for csx earnings of .78, analysts looked for .66 a share, looking at revenue 2.8 billion, expenses declining 13% year over year, or 8% when excludeing prior year restructuring charges. operating ratio, important met trick to watch, csx improved 950 basis points to 63.7% from 73.2% in the prior year. we're looking at the stock of 2.5% on a heavy volume, i might add, the company saying since implementation of scheduled railroading began in march 2017, csx took significant strides to transform the organization making it more competitive just want to point out that we are looking at shares up 3%

after hours, kelly, on a big beat on the bottom and top line. back to you. >> thank you huge improvement in the operating ratio, and, mike, this is a stock that's been through so much. >> it has. >> loss under harrison, concern about reliant and operating rai ratio the last time around >> right, improving efficiency and the rest of it a good size beat again, getting a measure how high expectations were very big bottom line beat, good on revenues, stock up 3%, still down year to date or flat year to date. >> bill, what do you think about csx and the transports here? >> in the notes, i said the companies report earnings, and what's been happening in the non-technology stocks is they report earnings beat and they are going to do well and they think they got a bright future, but the next day, by the end of the day, nobody cares. >> right >> that's what happened to goldman. by the way, this report doesn't

sound different from bank of america's report >> you're comparing csx to bank of america just to be clear? >> yeah. in other words - >> loan growth >> no, they are getting way more efficient. they had problems in the past, they had more money than people expected >> yeah. >> remember, the earnings improvements are the tax cuts, and so, look, the reality is there's a lot of psychology going on in here, and that is the trump trade is not working like it worked up until two months ago, and so the money is gravitating to the trades that are still working despite the fact that trump trade's not working, and so, again, i don't know what csx will do. there may be very early in a much bigger improving story, but those kinds of reports have not done anything for people in the last week. >> csx climbing a little more, up 4% now. let's get to ibm, though, big blue put out its numbers straight over to josh lipton to see how they did

josh >> kelly, ibm reporting eps year of 2.45, that is versus expectations of $2.42. revenue, kelly, $19.1 billion, up 5% versus expectations of $18.8 billion. gross margins, 43.7% the street was closer to 45.5% there. pretax margin 9.1%. strategic imperatives clouds analytics q1 revenue up there 15%. ibm generating 37.7 billion in revenue and represented 47% of total revenue over the past 12 months terms quickly of the business segments, kelly, cognitive solutions, 4.3 billion, and global business services 4.2 billion, and technology services and cloud platforms, 8.6 billion. the street number around 8.3 billion. touring ahead here not full year

guide, kelly, they are holding fast to this full year bogey eps from continuing operations of at least $13.80, full year free cash flow of $12 billion the conference call starts at 5:00 p.m. eastern. we're on it. kelly, back to you >> thank you, josh ibm shares down 4% right now what stands out to you >> strategic imperatives that's what everybody focuses on right now, below 50%, and people were looking for that to keep on growing double digits, and if we get clarity at 5:00 at the call, that's why you want to own the stock. the rest of the company's basically utility throwing off cash flow, but it's a growth machine in the cloud that i think is going to drive this stock further or just keep it where it is. >> stock was up $10 in the straight line in the last week and a half or so so it's giving back $7 of that. that explains part of it seems like it was better on most of the lines, and media firm guidance for the year is not enough to incrementally impress

anybody versus at 359 today. >> bill, revenues beat, over 19 billion on the top line, but, again, investors are shrugging that off right now >> kelly, this market doesn't like companies that make a lot of money and have a lot of free cash flow, and have a real strong business hidden inside that profitability they like companies that have a business like that hidden inside a company that's growing their revenue very fast and generating negative free cash flow of 287 million in a quarter >> now, who could you be talking about? >> oh, there's a company that went up 9% or 10% today called netflix. >> i think it starts with an n >> yeah. massive negative free cash flow meaning if you own the business, you wrote a check 20 somebody else for owning the business at the end of the quarter for $287 million. that's -- i don't -- i don't think that flies on "shark

tank." >> we're not seeing that in the top ten holdings for a while, bill we have breaking news to get to on the southwest plane that made an emergency landing in philadelphia phil lebeau is following this for us phil >> kelly, a tragic story there's a fatality linked with this incident, fatality, a passenger on this southwest flight who was killed after debris came out of the engine, blew out the window of the seat where this passenger was sitting, and that passenger passed away. put this into perspective. this is the first fatality on a u.s. airline since february of 2009 in the crash near buffalo, new york this ends one of the longest periods of really safety in the skies over the united states involving u.s. airlines. again, one fatality with this accident the ntsb, faa, they have investigators who are on the way to look at what happened they will have the data recorders and the black boxes

flown down to d.c. later this afternoon. should have at least initial analysis tonight this video from inside the plane shows what it was like because once that window was pierced, once blown out, it depressurized the cabin, and they had to lower their altitude relatively quickly, and then bring the plane in for a landing in philadelphia remember, it was en route from laguardia to dallas when this happened the engine failure, this is the focus for the investigators. what happened? what caused the failure and shoot out debris that blew out the window kelly? >> phil, interestingly enough, we saw southwest shares trade down 2-3% this afternoon >> right >> but ge, i believe, you said, maker of the engine, it did not have an impact, in fact, shares were higher. >> yeah. well, remember, ge is not solely aircraft engines, but interesting to see what they say. this bears a lot of similarities to an engine failure on a southwest flight in 2016 over

the gulf of mexico, a flight out of florida now, no fatalities or anybody injured in that engine failure, but this is what investigators look at. this is the workhorse engine for the southwest fleet. is there a systemic issue here too early to say that's what investigators are looking at >> yeah. and hope they can get answers. phil, thank you. phil le bbeau unfortunate news today we had earnings this afternoon, netflix impacting the market today what are you watching? >> i think you're going to look for companies, and bill mentioned this, good companies that have good cash flow and earnings growth, those are the ones i want to own >> you're not a netflix guy either >> i'm not a lot of the stocks that are just so high to the moon, they will come down, but if you got companies growing in an economy that is growing and doing well, those are the ones i want to own, you know, and i want to be

diversified in those >> bill, your pick >> we like discovery communications with massive free cash flow and unscripted television which we're speaking on right now, costs about 10% as much to produce as scripted television >> yeah. and as, mike, we were talking about old media names trading down, disney lower valuations. bill, seth, thank you, both, appreciate you joining us today. starbucks launching training >> over the backlash of the arrest of two black men in a starbucks. the company is closing 8,000 company owned stores on may 29th for an afternoon of training geared towards preventing future discrimination in stores providing training to 175,000 partners or employees across the country, and it will also become a part of the on boarding process for new hires at starbucks. the ceo, kevin johnson, promised when this happened, training is

to address conscious bias, and make sure everyone in the store feels safe and welcomed. those helping shape the curriculum is former u.s. attorney general eric holder, brian stevenson, founder and executive director of the equal justice association, and counsel of the ncaap legal defense and education fund johnson met with the two men arrested in philadelphia yesterday. in a joint statement, starbucks and the men's attorney said they engaged in constructive discussions about the issue as well as what is happening in communities across the country adding the conversation continues today about how this painful incident can become a vehicle for positive social change, kelly, back to you >> are they closing all the locations at the same time for this >> this is going to be an afternoon of training. again, important to station, though, at company owned stores. there's more than 8,000 locations, and they are just closing for the afternoon to train some 175,000 employees or partners as starbucks calls them across the country and take that

training and pass on to the licensed locations, so, eventually, all the stores in the country have a look at this and their employees trained accordingly. >> all right, kate, thank you very much. kate rogers there with the latest on starbucks. earnings coming in back to phil for more. phil >> kelly, we have united's earnings for the first quarter beating the street by a wide margin in terms of the bottom line and top line. coming in earning .50 a share, .10 better than expectations revenue at $9.03 billion, topping the estimate of $8.99 billion. passenger revenue for seat mile, metrics people look at, coming in with expectations at 2.7% that's passenger revenue per available seat mile, the growth there, the guidance has been tightened for the rest of the year to a range of between $7 and $8.50 a share, what analysts are expecting, but again, beating top and bottom

lines, .10 better than the estimate kelly, back to you >> thank you, phil, and, mike, 1.5 -- well, 2.5%. >> yeah. thought it would be a shrug. the stock off the highs, so it seems like the affirming of guidance and all the rest of it is more or less in place the transports, by the way weak today. >> they had a monster day yesterday. >> a little giveback >> we'll hopefully get more information from the conference calls as well. there's a lot more ahead still on the closing bell. what are companies doing with the windfall they got from the corporate tax cut? some of the pieces of the puzzle are starting to fall into place. plus, you won't believe what's happening at the irs today tax day, of all days this is the "closing bell" with kelly evans, live from the new york stock exchange.

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welcome back, shares of ibm down 5%, about $8 after earnings, and remember, that translates right now to a 56 point drag on the dow, so this one could impact the markets tomorrow joining us now is dan ives, chief strategy officer welcome to you

why do you think it's down so much >> comes down to the strategic imperatives area, really the focus of the street. look at big data, cloud, you really need to see growth there at double digit growth, and fundamental fundamentally, the street's been patient with ibm, but it continues to be a one-step forward, two-step backwards story, and especially in -- and this is a pivotal 2018 for ibm, and this is definitely a black eye for the bulls. >> matter of incrementally each month, each quarter then able to convert a lot more business in the direction of the strategic imperatives, or do they have to reshuffle the portfolio somehow and do more deals either as a buyer or as, you know, divesting something? >> well, a great point they tried to do it organically, and, you know, given the mainframe business, you have an anchor on the shift, but obviously some growth areas in cloud, big data, security. the problem is that by them trying to do it themselves, without the divesting or acquisitions, it's been stuck in the mud, and i think investors

are really, you know, they were patient for a while, but i think this is a pivotal quarter and next few quarters. you get cisco, look what they have done. >> it's a big company, ibm what acquisition could they make to transform the entire narrative? >> yeah, i mean, look, that's why if you look at areas on big data, there's companies like a tablo, companies like a splunk, there's cybersecurity, windows there where they could have gone aggressive, like a cisco has, and companies like microsoft doing organically through acquisitions this is what i view as a privatal three to six months the mainframe cycle teeters out, and it's not coming through as expected, that's where investors are really going to start to, you know, demand them to do something more strategic

>> although, you say the street's patient, trading at 11 times earnings, and they point to massive free cash flow. there's a business inside ibm that looks like one of the it services type businesses that trades at a higher multiple, so i don't know how you fix that. >> that's why the sum of the parts, if you do the sum of the parts and devalue the strategic, cash flow to the mainframe, you can justify 175 valuation, but the problem is the value is so much about the strategic imperatives area, and that's why i think this is a disappointment >> shares are trading at 152 after hours, thank you very much >> thank you for having me >> $8 partnersh.5 drop there. twitter finished higher, up 10%, 11% after a note upgraded the stock, up 11.4%, and upgraded from underweight to equal weight, but there's an expectation for better ad sales this year. what should investors make of this we bring in kelly and tim with thoughts on twitter, guys. welcome. >> welcome

>> karen, twitter's been -- it's one of the weird ones doing quite well in the midst of facebook woes, but feels like a show-me story. >> it does >> you're blocking the chart, by the way. >> let's show you the story the direction actually, i mean, it seems like people want it to go up, a long time they wanted it down, and they started to make headway, and this piece, this, you know, the long time bear sort of talk about what is positive, so some of the conversation with advertisers, all that being said, though, the valuation price is in. a lot of good things that have not come to pass yet if you ask me i don't know tim, however, long time fan. >> long time fan here, kelly >> yeah, but fan of the stock or fan of the, you know, the service? >> both. i mean, look, i think the service, scarety value to what they do, enormous intrinsic value. looking at the valuation perspective, karen looks at it through a tight value lens, i

give myself more rope on stocks that certainly are growth stories. this has been a growth story without the growth i think the most important dynamic now is kind of looking at the move. this move is all about data privacy concerns around facebook, and i think this is way overdone all this is fundamental and whether you think they are monetizing, but i think what nay are delivering to enterprise, they are not selling licensed data that's not anything but aggregated and data for enterprise and they are not selling direct messages, i think people missed that >> tim, i'm going back, and we got to go, but i like the turn of phrase there, a growth story without the growth, but isn't that the problem >> sure, it's the problem, but if you're going to get 14% revenue growth this year, daus at 11%, relative to itself, this is a lot of growth, and it looks like they are turning it around. >> relative to itself. you got a lot of things to pull out of your pockets here >> i'm on tv every day, kelly, i know how to do this. >> in fact, you can tune in on

"fast money" at 5:00 p.m thank you both go get ready yes, there's much more coming up at 5:00 p.m. 35 minutes from now. >> he's on tv every day. >> did you have any idea >> i didn't. >> i couldn't do that. >> how much of a buyback boom is created by the tax cut windfall? th'sti tco he at sllo meeron "closing bell. your business.vering virtually f so this won't happen. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence, you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't. you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here.

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street after a gain yesterday, a little less than 1%, s&p more than that, and nasdaq at 1.7% gain, 125 points higher. netflix had a huge day closing higher, 9% after earnings yesterday. rustle up 1%, and, of course, ibm moving lower, it might weigh in on the dow opening tomorrow time for the cnbc news update, sue? >> this is what's happening at this time, everyone. to the latest, now, on the southwest airlines emergency landing in philadelphia. the local nbc affiliate reports the boeing 737's left engine exploded about 20 minutes after taking off from new york's laguardia airport blowing open a window depressurizing the plane's cabin. the ntsb confirms one person is dead this is the first fatal incident on a u.s. airline since 2009 the estate department roberts it's trying to facilitate a working relationship between u.s. air carriers and russia.

they are trying to avoid disruption of flights over russia as tensions rise. thousands of greeks rallying in central athens to protest u.s.-led air strikes against syria. the strikes in retaliation for a suspected chemical attack by syria on its own people. this is one of the coolest stories of the day scientists believe they found evidence of a lost planet from our solar system european researchers say diamonds inside a 2008 meteor were likely formed by a proto planet billions of years ago, likely destroyed by collisions with other heavenly bodies and the study is in the journal "nature communications" to read more about it. that's the news update this hour, kelly, back downtown to you. >> thank you very much we have more on that southwest airlines emergency landing. phil lebeau with the latest now. >> a pair of statements for you starting first with southwest airlines within the last few minutes issuing a statement in regards to this incident saying,

we are deeply saddened to confirm that there is one fatality resulting from this accident the entire southwest airlines family is devastated and extends deepest heart felt sympathy to the customers, employees, family members, and loved ones affected by this tragic event also, within the last few minutes, we have heard from general electric, ge aviation, remember, it is the manufacturer of this engine it makes it in a joint venture with its french counter part f saffron and they are sending a team to assist the ntsb in the investigation, and, kelly, one of the things they are looking at, the fan blades within this engine this cfmcsx engine the engine in service since sne 1997; a workhorse, they are looking at, a, why did debris come out of the engine after it

failed, and what was the state of the fan blades? how old were they? were they in good shapes service bulletins they need to pay particular attention to? those are questions investigators are focusing on this afternoon and this evening. >> yeah. absolutely phil, thank you for now, phil lebeau keeping us up to date there. >> earnings alert on a pair of after hours movers how did they do? >> kelly, intuitive surgical, shares higher by 5% in extended trait putting it in record high territory. here's the story profits rising nearly 60% in the first quarter, higher demand for the robot call surgical device, a sign of the ageing demographic in the u.s., but, again, shares higher now by 5.5% in extended trade, but a very different story for lamb research, they specialize in chips. earnings beat 4.79 adjusted, revenue, though, flat. keep in mind, this is a stock gaining 6% ahead of today's

report, up 15% year to date, so, perhaps, investors hoped for a blowout earnings report and did not necessarily get that also, i want to point out in terms of geographic breakdown in revenue in the march 2018 quarter, despite u.s.-china trade tensions, revenue in china increased quarter on quarter by 17%. back to you. >> both names stall warts in the last couple years. >> yes >> thank you the supreme court hearing the case to determine whether you pay more for buying online those details when we come back right. as we head to break, here's a look at the s&p finishing the day, and tech the winner, up more than 2% and financials was the only one to lag. we'll be right bk.ac

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stocks on track for a triple digit open fueled by better than expected earnings from the likes of goldman sachs, j and j and unh. >> coming to you live from capitol hill in washington on tax day. >> we are beginning to see the impact of the tax cuts, specifically people investing large amounts of money back into the united states. >> millionaires in this country will get an average annual tax cut of $70,000

that's not what people want. that's not what people bargain for. >> a southwest airlines plane making an emergency landing after an engine blew it ripped a hole in the plane. >> stocks climbing, dow positive for the year >> you're actually seeing on the back of tax reform, on the back of good economic growth, earnings revisions moving higher that's a bullish sign, i think, for equity investors >> dow adding 213 points, 400 points of back-to-back gains here, dow up a little less than 1% if you were hoping to file your taxes electrically today because it's the tax deadline, you may have ran into snags, big ones, ylan >> reporter: parts of the website have been down since this morning as the countdown to the midnight deadline to file your return. now, this is the error message you get if you try to pay directly online with the bank k account. it's still up there. the acting irs commissioner said

there were problems if you filed with software from hr block or intuit, and this morning, he was grilled in testimony on capitol hill >> this is game day for the irs, and it seems the irs can't get out of the locker room >> reporter: now, 92% of returns are filed electrically as of friday, the irs received only 120 million meaning roughly 30 million tax returns could be affected by this outage. of course, the blame game already started here on the hill senator white and ranking democrat on the finance committee calling out republicans for underfunning the irs. kelly, the agency needs close to $400 million just to implement the new tax law, congress only approved 320 million so far. back over to you >> yeah, they got to extend the deadline or, you know, do something, i would imagine, and which maybe, you know, if you were not going to make it by today, you got a break >> that's what i was thinking. if you tried to do it today

electronically saying, we consider that a postmark >> right >> you're not penalized. >> i don't know they have that software capability. anyway, we want to talk about the supreme court case today w wayfair case, how commerce is considered state by state, but in the near term how much you pay online in sales tax, right >> that's right. the case is south dakota versus wayfair, and the issue is whether a state forces online retailers to collect sales tax even if they don't have a physical presence in that state. now, the supreme court sounded skeptical this rule needs to be changed at all they said that justices had tough questions about how much this would cost internet retailers and worried about the high hurdle for overturning a precedent the court established decades ago. now, wayfair is the lead defendant in this case in a statement, the company said it wants a level playing field

and a clear process for collecting any taxes, and it already does collect taxes for 80% of its sales meanwhile, states say they are losing out on as much as $34 billion in lost tax revenue although other estimates are a lot lower than that. that money is important for south dakota because they don't charge income tax. they sounded sympathetic, pointing out the original rule that had required a physical presence in order to collect sales tax was written in the era of mail order catalogs, a court ruling, and the court should update it. congress has to post several bills to resolve this, but none actually passed, and that's why everyone is paying attention now. we expect a final decision in june, guys >> ylan, thank you very much "wall street journal" had a great article, saying, sure, collect sales tax, effectively there, but if they rule that a virtual presence in a state basically is an economic or physical presence, you are

subjected to laws in any state like california's crazy cancer warnings on anything you eat and drink, for example >> right you could have essentially 50 attorneys general kind of, you know, shopping for things. >> right if you're a business complying with all of that, good luck to you. >> yep >> we'll see what they end upcoming down with speaking of amazon, the dash for amazon hitting the final stretch. next, former vice president dan quail and colorado governor have amazon in their sights from the market- woulde when it might be time to buy or sell? ities in real time. from the market- woulde fidelity. open an account today.

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welcome back in january, amazon narrowed down candidates for second head quarters to 20 u.s. cities -- actually, one is in toronto, but we asked them to make the pitch why their cities should be picked by amazon, and you get to help determine the winner by going for da dashforamazon.cnbc.com toronto won, so they are headed to the next round, sorry, austin today, denver faces office against indianapolis let's go to denver first with colorado hickenloop hickenlooper >> i'm colorado governor john hickenlooper, the natural choice to be headquarters 2 for amazon, the senter for my lineals, leader in startups in the country, and we are the center of craft brewing innovation. we have more than 1,000 miles of bike trails, more live music

venues than austin international, and we collaborate. we came together to build dia, the last major new airport that opened in the united states with over 190 flights all over the world, and in 2004, we came together to pass fast tracks, 122 miles of new track the largest transit initiative in the history of the country, and we're a place that really is pro-business, and yet we hold ourselves to the highest standards, and because of that, we work hard, and we play hard the 300 days of sunshine don't hurt either. >> yeah. he knows the keys, standing in front of the landscape indianapolis next with the former vp, dan quail >> amazon, pay attention, pay close attention, i want you to come to indianapolis, indiana. two reasons, location, location, location indiana's the hub for transportation and distribution. indianapolis airport, is no. 1 in north america, second reason, talent pool. think iu, purdue, notre dame,

butler, come to indiana. smart people, hard working, loyal, you'll never look back. the best >> all right let's bring in our panel of judges rating each pitch and city based on tax incentives, and the x-factor, five points for each categories, and 15 points total up for grabs. joining us, former texas state senator, wendy davis, and kevin o'leary. kevin, your pick >> i go with denver. you know, you have to think about the employees and lifestyle. over the last 20 years, denver is a really strong technology center there's just thousands of employees that you can poach from other companies that are already up to speed and writing code, extremely advanced i mean, you just think about the tax benefits, the only negative i can put on denver is it's not an east coast location i happen to think with a nexus on the west coast already for amazon, they want something

eastern. >> true. >> between the two cities, it's a no-brainer, denver >> wendy, what about you >> i agree i chose denver as well, and indianapolis has a low cost of living and they do have that great airport, but they are missing the x-factor, and that's what denver has in space there's a reason they have become a tech center there's a reason they attracted so many millennials, and as the governor said -- >> i think you are saying, wendy -- >> a work hard, play hard city >> indianapolis just is not sexy i'm saying it. i think you're saying it's not, and, you know, they are not going to like that, saying, oh, this is a great city >> i like the all the great people in indianapolis, and it's a fine city, but i think young people are going to be looking for the dynamic that is offered in a place like denver, and amazon, of course, is thinking about their employees, and the quality of life that they are going to have. there's a major infrastructure project going on there to improve their transportation, and you just can't beat the outtour environment and the music venues they have in denver

it's spectacular >> well, i got to say in my family, my sister picked denver. >> i know. i knew there was a branch of the evans empire there i only wondered if there was a little of an austin issue since it's popular and crowded >> yes, the housing market there is totally insane as i've heard. wendy, kevin, thank you very much that was easy. both called for denver see if you feel differently. go to dashforamazon.cnbc.com president trump promises the tax cuts benefit the middle class, but are the shareholders the winners? ge's make or break week, and the insider is telling us what he's watching in the company's earnings reports stay tuned aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. yeah, aflac paid us cash in just one day

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welcome back to the closing bell the irs will give taxpayers an extension to file their returns after widespread outages on the agency's website today treasury secretary steven mnuchin told this to reporters while speaking at an event in new hampshire. he said that the problem was due to high volume technical issues and that the irs is attempting to resolve it. no word on how long that extension will last. they are reaching out to the irs for more details kelly, back over to you. >> if they could differentiate between you tried for file and couldn't and anybody who wasn't going to get there anyway can take advantage, too.

>> procrastinators just got very lucky, kelly. >> elon, thank you very much lots of news making headlines after hours. ibm under pressure this could affect the dow tomorrow it's down $8.50, 50, 60 points even though posted better than expected profits revenue better than expected. continental growth per share thanks to growth per seats up 3%. csx higher after earnings and revenue estimates by 4%, mike. what do you think is most important, ibm because of the dp dow? >> in terms of index, ibm. you'll have to see if that gets turned around a little bit still in the early point of the earnings season we have a theme develop. we don't know if this is a reaction to get sneezed on and some of the other blue chips do better. >> is there sneeze going to be a cold for everybody else? >> i think not i think it's more of a push/pull

which keeps indexes at a controlled mode. >> we saw netflix, tech one one way. >> volatility index will stay suppressed because of that, opposing currents. >> one-month low. >> under 15. >> mike, thank you that does is for closing bell. appreciate everybody joining us. "fast money" begins now. >> over looking new york city times square tim seymour, brian kelly and fattan tonight crypto craze rages on as universe gets past one of its biggest hurdles, tax day brian kelly says alt coin a boy. cannabis craze tim seymour mapping marijuana world telling you the stocks he think are going to light up your portfolio. first we start off with bull fantasy on wall street that is apparently coming true