claims against them. [closing bell ringing] in jpmorgan shareholders security frauds suit. the woman who took a major fall for this and barry zubrew won dismiss a al of claims in jpmorgan securities lawsuit. david: looks like a win and a loss. jpmorgan's stock is still trading up over a full percentage point today. liz: the bells have rung on wall street. let's look how stocks are finishing up. this number for the dow jones industrials but at one point we were up 150 points. the bulls will take a 135-point gain. nasdaq up up over a full percent. russell 2000 having a great day. david: we love the small and mid-size cap stocks. we'll take you through the headlines and go to the market news. federal reserve chair janet yellen giving a strong defense of central bank easy money policies that has a lot to do with the market. she said the fed's extraordinary

commitment to boost the economy will be coming for some time to come. liz: reading of manufacturing fell short of wall street forecasts. so-called, chicago pmi, purchasing managers institute dropped to 55.9 this month. economists predict ad reading of 59. david: carlyle group won the bidding war for johnson & johnson blood testing unit. carlisle paying j&j $4 billion. liz: at&t little changed after the company said it would buy back up to 300 million of its shares. that is worth more than $10 billion. david: wow. u.s. safety regulators ordering automakers to install rear visibility technology in all new vehicles. remember it was something special? that will start in may of 2018. it is kind to cut deaths and injuries caused by vehicles backing up. liz: king digital entertainment, maker of "candy crush" betting on growth after its disappointing ipo it is seeking

165 new staff, equivalent to 25% of the its workforce. help wanted. "after the bell" starts right now. david: before we welcome our market panel, welcome back. good to have you back. been too long. >> i know. david: let's break down today's action. randy ward, ward financial chief investment officer who will tell what he thinks could spark a big stock rally. john maksim. beacon managing partner here. and scott shellady, he is the guy doing tough duty in the pits of cme. as always bulling his way through the traders. it is all about yellen? is that what is going on today, scott? >> a little bit of yellen and a little bit of putin. a knock-on from friday's recovery. we saw talks between obama and putin released. talks of a nice way to end this thing.

putin is part of the rally definitely taking troops off the border. yellen coming through with slack on the workforce. i will say this, there is slack in her qualitative guidance. what she put out there the first time around left it wide open for what she needs to do to get this thing done. her job is more difficult by the day, she is tapering into a weakening economy. we continually miss the expectations on economic numbers that we see. so i would like to see what happens. ultimately in perverse way good for stocks. we'll get a new stimulus or things will generally turn around. david: scott, i'm looking at sunny day in new york so i'm feeling optimistic right now. just for today, maybe. we've had a cold wouldn'ter. all right. liz: randy who believes if we get gdp of 3% we'll suddenly get a rally. randy, we saw a rally today without that. >> that is fantastic. it is about time the market finished a day with the gains it made during the day. so much it is really -- recently

selling off those gains and today it was able to hoed the gains and that is good sign for q2, john, doesn't this market though need new money? sometimes they say you need new blood to get circulation to go again. i know all the money being made in this market. it is going gangbusters. that's a good thing. a lot of money hasn't come in yet. when will that happen? >> i think, thanks for having me. i think you're starting to see that with individual investors. a lot of investors to your point stood on the sidelines of the market after the lehman collapse, about $430 billion. they have really missed the rally we've seen over last five years but you are now starting to see individual investors get back into the market because where are they going to go for income or for yield? banks are paying historically low interest rates. when rates begin to rise at some point, long-term, midterm bonds will be devalued. you're not almost left with a choice. i think you continue to see

individual investors come into the market. liz: let me interrupt you, john. we showed s&p five-year chart. it's a gorgeous chart, were people gotten in five years ago, three years ago, one year ago, but they are still frightened. >> right. liz: if they were to say, john, i believe right now i'm getting in, you like names like verizon and why? what other names work into your vision of a market with a great run-up? >> sure. well, we work at our firm with a lot of retirees or people close to retirement. what they're looking for is really income and they used to go to traditional bank cds that were paying five, 6%. they're not going to be in that range anytime soon. so we like high-paying dividend stocks like verizon. verizon has paid a really good, consistent dividend, about 4.6%. they have got a strong balance sheet. really that is very steady. best in class smartphone. we like companies like verizon that are high dividend payers for income for our clients. >> randy, we were just talking

about biotech. ibb, the etf for biotech, doing very well today. has it bottomed out? is it ready for another run? >> yes i really think it has bottomed out. this little pull back that you've seen this is great opportunity for investors to finally get into a name that has been red hot. it has been good for the last week or some this is an opportunity to get into momentum names as well as ibb, which, has been doing very, very well. so we're really looking forward to the next quarter. liz: scott, the next quarter, as we look forward to that is obviously important. here comes earnings reporting season, right? what should investors really be looking for right now? >> i think what we have to be looking for is to make sure, that the weather was the problem. because if we don't, if we can't blame it on the rain, what will we blame it on? i don't want to come across as nervous nelly or debbie downer here, somewhere along the line we'll have to start delivering and i just don't think we're

quite there yet. so i think in the short term let's try to get a clean set of data that doesn't have anything to do the with the weather or can't blame it on the rain. if that data comes through looking better or as strong as we like it to be, it will be safe to dip your toe back in. if not i things are still tenuous. david: john, the market out there, i'm with scott scott shey with so many cases. i think the fed has been too loose. i think they have to tighten up. on the other hand you look what is happening in some breakaway markets like telecommunications for example, what netflix is up to, the deal they are now making with comcast, the fact that the judge in that whole net neutrality thing is allowing market to work there the market is coming up with unique ways of providing information and television to customers that may make a lot more money for telecoms. you're in favor, john, of verizon. i assume that's one of the reasons why, no? >> yeah, that's true. when you think about companies

like netflix, i mean netflix is obviously been a great story. i think that the question with stocks like netflix is going to be, will they continue to grow in the same fashion as they get into some of the more rural areas where their networks may have a little more difficulty expanding and increases costs and competition. david: the point, john, when you have really new technology providing new opportunities for customers even competitors, even if you're competing against each other, all boats could rise with the tide. >> yeah, that's very true. absolutely. liz: randy, give us some guidance here. as we look toward the second half of the year, i just think that there are a lot of investors that are still fearful. is that an incorrect emotion to be following? how much of your portfolio, and i always know it depends on people's risk and horizons, all of that, time horizon, how much would you recommend from somebody in their 20s, are different, let's say 30 to 50s have focused in stocks.

>> we're looking for people with opportunity to look into the market. we run into a lot of investors who have tremendous at of cash on the sidelines and missed out on this run-up. liz: totally missed out. >> yeah, totally missed out. they're look for safe equity. they're looking for a way to get into something that is hedged when the downside comes but taking advantage of the blue skies like we have outside of today. when things are good you want to run fast, you want to make money. when things are raining outside, when things are going into recession, when the yield curve flipped over, these are times when you want to take chips off the table and pull back on your risk tolerance and derisk your portfolio. right now it is not one of those times. right now is one of those times where things are going fairly well. the market and economy seems to be getting slowly better, not at a rapid pace but that's a good thing. we don't want the economy to get overheated. we want to see gdp -- david: i don't know. i would love it to have 7,% growth, what is wrong with that!

as long as market can sustain, nothing what ronald reagan's era showed us you can have 7 or 8% without having high inflation as long as you reduce the costs of doing business. that is really has to be done. guys, thank you very much. randy warren, jon maxson, scott shellady we'll check back with you in a few minutes when the s&p futures close. liz: put on your seatbelts and possibility of a rate hike sooner than we thought, bond rates have dropped. one strategist says we're just getting started. rates are about to his term, crash. david: oh. liz: time to get in now. david: some banks are lowering lending standards. now while it may be good for some homebuyers, isn't that part of the reason we got into the housing mess in the first place? will it help, however, or hurt the fragile housing recovery? barry habib, you know harry habib is our touchstone for the real estate future. he will be here to join us in a

moment. liz: join the conversation. do you think loosening standards is good or unhelpful for the housing market? could it lead us to trouble once again? or should banks start lending? they were supposed to do it to quality lessees, right? tweet us @fbnatb. we'll show your answers later this hour. we would love to hear from you. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded?

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with investment information, risks, fees and expenses to read and consider carefully before investing. liz: imax gets a boost when jpmorgan reiterates the rating on its stock. david: nicole petallides on floor of new york stock exchange. nicole. >> we had the ceo many times, liz claman. good friend of ours. good move by the stock. up over 4%. this is all on positive comments from jpmorgan. they couldn't say enough about the company. talking about the year 2015 going forward for the company. talking about a big film lineup. they had a meeting with the company's management. after that meeting they moved their rating and reiterating, rerate rated that rating as overrate. best play on promising 2015 box

office year. they like their exposure to emerging markets, particularly that of china, also a big deal here for imax. the focus on the biggest films in the late. this is great call for imax. they got nice momentum on the stock because of it. liz: nicole, thank you very much. david: s&p futures are, well they closed five seconds ago. let's go back to scott shellady in the pits of cme. will the rally continue tomorrow, scott? >> i think it has a chance of doing that we haven't mentioned fact we might see the ecb come here and give us a little bit of a push to make it through the 1880 level. keep an eye on ecb to help us with the s&p. we've obviously got a jobs report by the end of week. david: scott, thank you. liz: ecb and s&p. thank you so much. when the federal reserve began tapering its bond buying late last year, i mean by this much, interest rates did the complete opposite of what a lot

of people anticipated they would do. everyone thought they would go up. they continued to move lower. our next guest says the trend is not surprising. he believes bond bear sentiment will slowly unwind and more bulls will emerge. what trends is seeing and where do you find dividend yields as rates fall? we have eagle bay capital founder and president. that is what was most surprising. everybody thought rates would start to tick higher. but in essence they weren't raising rates. they were simply scaling back and tapering on massive bond buying. why do you think rates based that way? >> it faces nating to me. you talk about how everybody was expecting interest rates to rise. that was common knowledge. you see it from all the sentiment polls. the pessimism in the bond market at levels we haven't seen since the beginning of 2011. what happened there, treasury bonn went up 50%. interest rates went from 7.1% down to 1.4. we haven't seen pest minimum like that until december. what happened since then?

rates coming down and bond are ripping. >> janet yellen spoke today. boy, did she strike a accommodative and dovish tone saying that the economy is still no good and needs our help. will rates continue to go lower from where they stand. >> that is interesting. people say one thing and interpret something else. we don't worry about what people are saying and doing, but at end. day, janet yellen is looking at backward looking information. these are lagging indicators. market by definition is forward-looking. the market is buying bonds all year. stock market is flat year-to-date. bonds are up 7 to 8% depending what you look at and i think that continues. liz: your value is looking what the herd is doing and you find mistakes and cracks in what the herd is doing. stock market in general is pretty much flat. >> that is exactly right. the herd is generally right. so what we like to focus on when these herd mentalities are at extremes. like i said, at end of last year

they were levels we hadn't seen in years. that unwind has already begun and typically when they're coming off ex-trees like that, those new trend tend to last longer than most people expect. so i would be surprised if bonds didn't keep ripping from here. tell me what you are advising people to do. >> yeah. liz: you said bonds will keep ripping. get into bonds. which bonds. >> tlt, bond etf. that is the probably most liquid way to take advantage in the equities market. liz: okay. >> we're looking 115, 116 market. that is big fibanachi retrace mane from last year's decline. where there was demand there should be supply. i would be fading at that point and reevaluating the situation. liz: just as everyone thinks they know rates and stock market will go they don't. ththey have obviously made mistakes or at least markets in a way voting machine moved in different direction. >> that's exactly right. liz: how low do you expect rates to go before they turn up? >> that is a great question.

rates have been coming down over 30 years this is nothing knew. when people talk about rising rate environment or whatnot that is clearly the not case. this is downtrend this takes time. when ratessed bottomed out in the '40s and '50s this was a 20-year process. i wouldn't be surprised if they stayed flat. liz: money in treasurys was dead money over the past year, minimum. >> yeah. liz: there was no yield. like keeping money under a mattress. you're saying go into it. >> two things. i've been saying all year that bond go up. i still think they do. rates are about 2.45%. who haver there a little while and we see about 2, 2.1% is looks like the ultimate target. you're seeing the stock market tell us exactly same thing. fixed income traders can't get yield in bonds. so where are they getting it? utilities and reits. stock market is flat, reits are up 8%. utilities up nine and 10%.

liz: david, thanks for joining us. we have breaking news. david: general motors if they haven't enough trouble there call forge recall of 1.3 million cars. this time power steering. the problem may relate to other problems that the cars had with regard to its electrical grid. but the sudden loss of electric power stiering assistance caused a great deal of alarm by general motors. therefore they're recalling 1.3 million vehicles. they have just told the national highway traffic safety administration they're on top of it. apparently they have the support of nhtsa. that is the latest recalls to hit gm. boy, one after another. liz: the stock is ticking down. david: just slightly. liz: the bid now 34.20. but again the story continues to have legs and walk further. david: we'll see what happens tomorrow with gm's stock. did you ever have to return an item you ordered online but all the boxing and wrapping you didn't have time to do it? one san francisco startup wants

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liz: we do have significant breaking news on general motors, to jeff flock qualifying what the news is. more recalls here. >> more recalls, and an additional write-down in the first quarter. the two headlines are this, liz. more than 1.3 million vehicles now be recalled. mostly older vehicle. the numbers i got from gm here is the release. 2010 or older. i will tell you what those are in a minute. 1.3 million of them for power steering problem. power steering could go out. here is the second headline. that is they're announcing a additional charge in the first quarter because of recalls. it was 300 million. it is now going to 750 million. more than doubling amount of the charge. here are the vehicles on this latest now recall. we always say latest recall because there have been a number of them. 1.3 million chevy malibus, year models, 2004, 2005, 2006, 2008,

2009. chevy hhrs, chevy cobalts, ones recalled earlier because of the ignition problems. saturn auras and ions and don't pack g 6s. some -- pontiac g 6s, because previously been recalled and work had been done. they say now, the jeff boyar the new head of safety for gm said we did not go far enough. we did not do enough is the exact quote. some of these were recalled previously. if you have got one of the cars, we'll put up a complete list, exhaustive list, later. even if i had been repaired before it may have to go back in. gm on it i suppose. liz: jeff flock, thank you very much. david? david: thank you, jeff. if you're looking for a "no-spin zone" in a corporation usually have to turn to the cfo. a solid cfo may be criticized for holding back a visionary ceo but he could be praised of

warning investors if a company is spending more than what is coming in. a lot of investors look closely at deloitte's quarterly cfo survey run by our next guest, sandy cockrell. we had you for the last quarter. we really enjoyed that. it's a bellwether what is happening with the economy. >> yeah. david: the overall message is that the cfos are not optimistic, are they? >> they're optimistic but not at levels we've seen at this point in the calendar year of our survey. david: why is that? >> number one, regulation continues to be a thorn in their side. they're also worried -- david: in other words the cost of doing business is increasing, not decreasing? >> uncertaintity around future regulation. number two consumer is demand is big issue. with muted unemployment growth, that is a big issue for cfos as they predict out their own company prospects. david: if you look at sales growth and capital spending growth looks fairly healthy to

me, no? >> it is 4.6% slightly up from the first quarter. david: put the numbers back on the screen. >> earnings growth at 7.9% in the lowest in the hit history of our survey. david: it is low even though it appears high. we're nowhere near moving toward a recessionary period, are we? >> no. the survey averages 11 1/2%. it is still down by fairly healthy. the interesting thing the delta between sales growth and earnings health is beginning to narrow. david: what about domestic hiring? >> hire something tough. very anemic. 1% hiring growth projected for this year. david: if you're looking for one place to squeeze it is in the area of personnel. >> i think cfos and businesses in general are very concerned about adding to payrolls at a point where we have -- david: 1% growth. domestic hiring. that will not do anything to really cut into our unemployment problem. >> that compound the way cfos with compound growth.

david: that may give us a figure into why janet yellen wrote today while there are positive signs in the economy, generally speaking we may have to keep doing what we're doing. >> correct. her unemployment numbers are still, 5.4% range, to bring those down to that level from where we are today. a lot of movement has got to take place. david: labor participation rate. people moving out of the labor market that really bothers her. >> yes. david: looks like corporations will be letting them back in. >> that's true. david: obamacare you talked about regulations. that must be one of the foremost in people's mind, cfos minds? >> two stories. number one, employees need to be prepared to pay more for health care and probably better join a gym. 60% of the cfos said they will pass additional costs on to their employees. david: wow. >> number two, 2/3 will start to focus heavily on wellness programs as part of overall way to reduce costs. david: talk about the first part. that means in 60% of the

corporations, employees are going to find their health bills going up? >> yes. david: directly as a result of the cost of obamacare? >> exactly, those costs get passed on. david: this means the consumer will have less money jingling around in their pocket which may affect sales overall in the economy. >> that is very true. david: wow. what about the other part of that. the fact that what they will be focusing on is trying to increase health of employees? that's a good thing. >> that's a good thing. takes money to do that as well. david: what is your impression? you've been doing this for a while. what is the impression of this overall story? did it surprise you but optimism is much less than you expected? >> net optimism was 27%. 27% of the cfos were more optimistic for next 12 months. we expect the first quarter to be much healthier than that. 41% average last four years looking at first quarter. david: first quarter is generally pretty good. >> cfos closer to their numbers. they went through the planning cycle. feel good about the numbers.

all these metrics are down what we've seen before. david: profitability, companies have squeezed so much, hard to imagine squeezing anymore. are we going to see a growth in profit coming up? >> optimism at the top line. we're at point -- david: top line, not bottom line? there has to be more revenue coming in. >> exactly right. companies have done a tremendous job becoming productive and efficient it is very tough to squeeze anymore. david: heading into earnings season we're beginning to get numbers coming out in a couple weeks now? >> yes. david: the focus should be on revenue? >> yes. how they will grow their business. what are plans to do that from a strategic standpoint. david: scott, thank you very much. scott cockrell, thank you very much. thank god for deloitte. thank goodness it is doing what it is doing. come back again next quarter. >> bye-bye. liz: david, are you tired of remembering passwords that keep being changed or car keys or swiping your credit card? what if you could do all of that with just your heartbeat?

that's right, paying with your heartbeat, details straight ahead. david: i want to hear this. banks are starting to loosen lending standards for homebuyers. are they trying to fight off a downturn? could this lead to practice that is helped fuel the housing tell us what you think? is lowering lending standards good or bad for the housing market and our economy? send us a message at facebook.com/afterthebell. your answers coming up. ♪ i ys say be thman with the plan

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mfs. because there is no expertise without collaboration. david: as mortgage refinancing applications have started to drop, banks have begun loosening lending standards hoping to induce buyers. >> some out there worry, it's a fairfair worry, that is could take us down a familiar road, some say was partially to blame for the housing collapse and financial crisis. with us, barry habib, mbs highway founder and ceo. to let us know what do you think, loosening lending standards? jpmorgan and wells fargo said out right, we're ready to start lending more. good or bad? >> interesting question. they're trying to prime the pump. volume levels are down. year-over-year, purchases are down 15, 20% depending where you are. refinances are down 70%.

how do you increase volume? open the spigots by loosening standards. liz: here on the screen, fico scores for wells fargo they will go as low as 600? >> some are even going below 600. some lenders are experimenting with it. how it will turn out it will take a while to see. the big question will the real estate market hold up? if the real estate market does well it makes up for a lot of these potential pitfalls. if the real estate market doesn't do as well, heaven forbid starts to decline, these weaknesses will be exposed and these loans will not perform very well. david: the regulators are sitting back watching the process. they're determined not to let it happen again what happened in 2008 and 2009. i know the federal housing administration is loosening standards a little bit but the fed has these stress tests. we just went through this procedure last couple weeks where the banks are scared to death they're going to get a bad rating from the fed. in fact it happened to citi. so while some standards are looksenned the banks are afraid

of getting bad notice from the feds. >> you're right. here's the thing. fha, fannie mae, freddie mac, their standards are typically a little bit more relaxed. lenders self-imposed things called overlays which they lay over the guidelines to make sure their loans perform better. david: partially to satisfy the federal reserve board? >> to satisfy a few things. credit rating, neighborhood watch scores are still real good. that their portfolio performs well. it doesn't take many bad loans or loans you have to buy back to throw things out of whack. they want the loans to perform. it's a fine line. you want to bring volume. there are only so many cuts to make. you heard of all the cuts across the board. we're at a level it is a little bit of a gamble taking place. liz: barry, what jpmorgan decides we're ready to loosen standards, do they have to check with regulators to or can they go ahead and do it? >> i believe they can just do it. they self-impose overlays on top of what is already out there from fannie, from freddie, from

beginey. these are things that they're self-imposing, but i think the real big takeaway here, if i'm in my living room watching you guys and hearing this, this could be a good time to if i missed out on a refinance and saved 3, $400 a month, and i missed qualifying because standards were too tight, or additionally i wanted to purchase a home -- david: if i'm in a homebuyer right now, i'm in a sweet spot. >> yes you are. david: not only all these things relevant and standards looksen and it's a tough winter. a lot of sellers who wanted to sell during the winter wanted to be able to are getting anxious, are they not? >> you bring up such a great point. a lost buying process is negotiation. you can negotiate a better price. think about it. you're a seller, sitting at home. you're not getting a lot of activity. the weather has been crummy in many parts. country, if you get a buyer comes in even if the offer is lower, you may be inclined to

accept that. as buyer that could be several thousands of dollars you could save on the way in buying smart. liz: to that end, should you out there as buyer negotiating with different banks to say what is your best deal? can you lower the closing costs? are the banks sort of on their heels now and they need to negotiate? >> i think that lenders are definitely in a position where they're hungrier and there are less transactions to go around. it is always a smart idea to shop as you always told people but right now the point you bring up are they even a little more willing to be a bit more flexible. to the degree they can i think that's a big point. david: television time is premium. people kill for 30 seconds. we gave you all the extra time because we love having you. you give us great advice. >> i love being with you guys, thank you so much. liz: barry habib, thank you. david: good stuff. liz: are you tired of going to the post-office to return a package by the box and stick it in there with the thing in the thing? david: absolutely. liz: this new app will take pain

and annoyance out of shipping and you never have to worry about logistic again. guess, it is backed by the winkelvoss twins. remember them? we have the cofunder and ceo next. david: we have breaking news moments ago about general motors. all this coming before ceo mary barra heads to capitol hill for tomorrow's testimony before the automaker's huge earls. imagine that. on heels of this new recall. what a day she will have. weville a preview coming up. ♪

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(agent) i understand. (dad) we've never sold a house before. (agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited.

liz: do you want some investment tips from these guys, winkelvoss twins? david: would i like some, yes. liz: they are smart people. they helped create facebook. our next guest, the company shyp is part of the winkelvoss portfolio. it aims to eliminate the pain of shipping packages or returns by doing it all for you. david: the ceo an foe counter kevin gillis is joining us now to discuss his company's services and since it launched in san francisco last week. kevin, brilliant idea. >> thank you. david: let me run through because we did a little show-and-tell for you to describe how it works. we took a picture earlier in the day of a chair, just a chair, normal chair. so we take the picture, i guess we send you some details and we don't want to wrap it up in paper and cellophane. we want to leave that to

somebody else. say we want to ship it to our daughter in college at boston and we call you up, what happens. >> yes. iphone app. take a picture. tell us where it is going. enter an address. that is really quick. you request a pickup, one of our drivers, ship heroes, we aim to be there in 15, 20 minutes. we handle all the packaging, for how much? >> we charge a five dollars pickup fee. then we send it through the lowest cost but highest reliability option through all the different shipping carriers we use. liz: how do you do that process? you're almost like the my simon of shipping. >> yeah. what we do, we basically have all of our drivers, they're all independent contractors. they use their own vehicles. they're basically just positioned within a city and then as soon as we get a pickup request, closest person to that location will go right to their location and then bring back the items to our warehouse where we do all the packaging and ship it out from there. david: what surprised me, only

30% of your customers are folks like us, are consumers. most of them are retailers. so the retailer, i would have thought the retailers would have had people to do this but folks who want to contract it out will call you, correct? >> yeah. so we deal mostly with small businesses. so it's kind of companies that we'll do, most likely at somehow has some sort of online selling component to it. it could be a brick-and-mortar retail they're sells online through one of their online stores. could be somebody who sells on ebay or etse. a vast majority of our users send a lost promotional items to re-engage with their customers. could be t-shirts or any, some sort of swag. liz: david and i are venture capitalist grillers here. is everything insured? how do you make sure that the guys who are picking this up for 5-dollar fee which seems to me, awfully small, are not going to pick up the items and run? >> yeah, so for every single

item we kind of, we handle we have $1000 guaranty from the time we pick it up from one of our drivers until it reaches an end destination. that is actually quite a bit more than any of the other carriers provide. if you went to fedex or ups you would pay an extra fee to get that insurance. use be shyp, that is something we provide out of the gate no additional charge. david: i see this model growing. who knows, you could be the next fred smith who started something like fedex. what is to stop you from going to patrick byrne, the founder of overstock.com, look you probably have a big share of your business that's too small for to you really bother with. coy help with you that part of the business? have you thought of doing something like that? >> yeah, absolutely. we have a ton of requests from people that are like, they're sending out thousands of items per month. but with this first product it is really focused on people doing lower volume. we see a sweet spot for people

doing 20 and 100 items a week. and right now just iphone app. so you have to enter everything through there. definitely down the line we want to basically help as many people out as we possibly can. >> is there anything you won't ship? david: good question? >> kind of rule of thumb, anything that will sit in the back seat of a four-door car. that is what our drivers will come and pick it up in. david: this is where i could see the model growing. say you work out a deal, i don't want to focus on overstock. we know patrick byrne. he is a nice guy. he will probably listen to you. >> yeah. david: listen if you buy couple trucks and something bigger than what fits in the back seat of a car. would you be amenable to something like that, to grow in that area? >> i think with small startups i think it is important to focus in on something. we focused in on attacking, people already doing this process themselves. we find they have like, the largest pain point, the background how we came to this idea, i used to be ebay power

seller. i had my own fulfillment system but it was all me. we find those are people we really want to help out with. that is what this product is designed for. but we, definitely see different extension, in different areas for sure. liz: we're thrilled to profile the company. we love gutsy startups. you're welcome anytime especially when you launch the ipo, let us know as soon as you do. >> we'll do. thank you very much.m recall nia whole lot worse just before, the day before the automaker's ceo mary barra is heading to capitol hill to testify about safety concerns there is this. 1.3 million more cars. how, what is she going to be asked and how will she answer? we have a preview. liz: unlock the computer, pay for your company and even open your hotel room door. soon you can do all that with just your heartbeat. david: what? liz: yes, wait until you hear how this is going to work! that's next.

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liz: we learned this past hour that general motors is now expanding its already massive recalls by another 1.3 million vehicles. this news ironically coming just before gm's ceo mary barra's

testimony to a house panel tomorrow. david: meanwhile in a separate hearing on capitol hill, the automaker could be forced to issue a stop driving order for the cars in question. jeff flock has been all over the story. he has the breaking news. what is the latest, jeff? >> more details on the recall of 1.3 million. loss of power steering, late model or older model cars, chevy cobalts, chevy malibus, hhrs. you may lose power steering but won't lose compete steering. gm says you should get a chime warning when this takes place anyway. 1.3 million of these need to be brought in and repaired. the repairs are extensive. in terms of recalls, my rough math says we're up to 6.1 million vehicles recalled in the first three months of gm this year. last year, gm recalled less than a million the whole year of the big winner in recalls last year or loser, toyota, 5 million for the whole year.

gm is at six million. moving to mary barra and questions she is going to get. today some of her written testimony came out. she said she still doesn't know why the recall didn't take place sooner on these ignition problems. she will be asked why? she says the cars are safe to drive. but as dave you pointed out a judge in texas will rule on emergency motion to say, no, they're not safe. get them off the road. she said today, gm would do the right thing. does that mean they will recompense, people, victims of these crashes that took place prebankruptcy, which they theoretically shielded from? speaking of insulated, the gm culture we are learning insulated the ceos from this recall question. they didn't even get to the ceo's, according to the gm's own admission. what about that? she will get questions on that as well. take a look at the quote from the, from the letter, or should say from the printed testimony that mary barra will make tomorrow. she said the former u.s.

attorney will have free rein to go where the facts take him in terms of their, in terms of his internal investigation. she says the facts will be the facts and she said i'm deeply sorry. the question whether these vehicles are safe to drive since they're still on the road, richard blumenthal, senator from connecticut already thinks they're not. he thinks they should be taken off the road. he brought up question of compensation for victims it. victims may be barred from meaningful recovery because of the bankruptcy lie liability shield. he says in this letter i believe your company has both a legal and a moral duty to right this wrong. will you, recompense these people, even if you don't have to because of the bankruptcy shield? should be a fun day both tomorrow, starting at 2:00 and the next day. david: we will be watching. blumenthal former ag. once the lawsuits come in who knows what will happen. thanks, jeff. liz: let's go "off the desk." what if your phone, your computer or even your car could

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gerri: hello, everybody, i'm gerri willis. with "the willis report." where discuss your favorite story rank? congress putting general motors in the hot seat over its recall. hearings come amid new questions what gm and federal regulators. >> you and when. new hope for people that sufficienter from migraine headaches. we're watching out for you on "the willis report." he.