a better entry for goldman is 190. that report supports buying it on a pull back. >> can you look to sell some puts if it gets down to those levels. >> dan also had the hot hand. take a listen to what he said about exxon. >> it's down 18% from the 52 week all time highs made last summer and really trying to kind of make a bottom. for those looking to make define risk directional plays the options market is one way to do it. today i looked at it when the sock was about 85 and a half. look out two months june expiration. they were offering $2.50. >> dan what did you do? >> you had this quick move and it doesn't always work that way but sometimes thuf consider what's going on. the trade cost 250. probably worth four and a quarter. we're looking out to june. june expiration. what i'm trying to do here when this stock is at 90 it should be at a double. that's when i'll consider rolling it up and out. or possibly selling a higher strike call in june expiration to lower my break even and lower my risk. >> a big week. a big we

try zip recruiter for free today. >> goldman sachs shares rose >> goldman sachs shares rose this week on the bank's impressive news reports. that was good news for mike and carter. "options action" is how we trade like wall street legends. risk less so we can earn more. that's what carter did. he thought goldman was just about to break out. but just buying stock, that may be the case but buying 100 shares, that would put you back so he bought the 195 strike call for $7. to make money he needs goldman shares to rise above the strike of the call. or in this case above 202 by july expiration. >> can't tell you how excited i am. >> it gets better. if goldman shares go up, those calls will increase in value faster than the stock will. meaning more money in mike's pocket. >> greed, for lack of a better word, is good. >> you bet it is. since the time of the trade goldman shares have rallied 4% making this trade a quick winner. now "options action" fans all over the world are asking just one question. >> can you say that again? >> no. what they really want to know is how can they make more ca

the first time goldman sachs -- right now, they are up to 204.ou look at these results in the eye of a regulator common equity tier one ratio is 12.6%. well above what bank of america reported yesterday. you see banks be more cautious now? olivia: if i were a regulator, i would want to know where is this pop in revenue trading coming from? these shifts with global central banks have to be good for trading. years ago, people were complaining that there wasn't enough volatility. olivia: it looks from the bloomberg headlines like it is apples for apples. still to come, much more from the imf, including a special interview with the imf managing director, christine lagarde. don't miss it. this is "bloomberg surveillance ." ♪ tom: a beautiful spring morning in washington, d.c. i saw some cherry blossoms coming in from reagan airport. we say good morning to all of you. the spring meeting of the imf. return to europe now. valdis dombrovskis is the former prime minister of latvia. we continue our discussion -- let's focus on europe right now. i see greece

goldman has done a phenomenal job, too.nkly, i think the prudent thing is to own both companies and the only question i have for you, real quick is at the end of reporting, at the end of reporting, what's going to be the one stock here you're happy to show -- >> this is payback. >> citigroup can buy back stock 10% below tangible book when book is clean. te tell me when else in the last 20 years you've seen that? >> that's the last point. >>> coming up, joe makes a trade in the halftime portfolio competition, he's tripling down on one sector. >>> and top value investor bill nygren managing $25 million. joins us with his top plays and two new picks. get your pens and paper ready. woman: it's been a journey to get where i am. and i didn't get here alone. there were people who listened along the way. people who gave me options. kept me on track. and through it all, my retirement never got left behind. so today, i'm prepared for anything we may want tomorrow to be. every someday needs a plan. let's talk about your old 401(k) tod

. >>> goldman's goalen report. what fueled the company's best quarterly results in years. >>> market debut. ipos are back but there are three things investors need to know before buying into them. >>> industry after shocks. why oklahoma finds itself at the epicenter of a debate over fracking and earthquakes. >>> all of that and more tonight on "nighlty business report" for thursday april 16th. >>> good evening, everyone. and welcome. i'm sue herera. tyler mathisen my partner is off tonight. it was all green for some of america's bluest blue chip companies. delivering better than expected earnings. and in the gace of goldman sachs, the numbers were blow jout. smashing through estimates, echoing numbers by other big banks. in goldman's case a fuelest best quarterly numbers in years, confirming the strategy of a business model critics said was too risk yip in the wake of the financial crisis. investors, however, were expecting the strong numbers and after a recent runup they sent the stocks slightly lower. mary thomps

from td ameritrade goldman >>> goldman shares rose this week on the banks' impressive earnings report and that was good news for mike and carter, and here's why. on "options action," it's how we trade like wall street legends, risk less so we can make more and that's exactly what koe and carter did with their bullish bet on goldman sachs. carter thought it was going to break out, but just buying the stock -- >> something big it going down. >> that may be the case, but buying 100 shares would still put you back nearly $20,000, so instead, mike bought the july $195 strike call for $7. now he needs shares to rise above the call by more than the cost of the trade or in this case above $202 by july xrision. >> i can't tell you how excited i am. >> well, it gets even better, leo, because if goldman shares go up, those calls will increase in value faster than the stock will, meaning more money in mike's pocket. >> greed, for lack of a better word, is good. >> you bet it is, and since the time of the trade, goldman shares have rallied 4%, making this trade a quick winner. now "options action"

goldman is a leader in all of them.almost any market, they have a good trading mix of revenues, but specifically now. we should hear from them on frooild that their banking business is good. their trading business is good and then the key then will be what is the outlook? it's hard not to be bullish on investment trading. i think people are still a little nervous about it. >> jeff, brian kelly. if i'm looking to get in tomorrow morning to some of these banks or something with a capital market side, should i look at it this way where, you know, nims are going to stay relatively flat. it's going to be a tough operating environment and if i see volatility in the equity markets in the fixed income markets, then that's good for goldman sachs. if i don't see that, then i should sell goldman sachs? >> volatility is a good thing for trading. now, i don't mean, you know, volatility that spikes one day and disappears. the volatility we had this year would be good. to be bullish in the investment banks here, you want investment ba

>> fred likes goldman, guy likes goldman, i like goldman. fred has a 195 target on goldman sachs.ll it 195. it keeps pushing up against this 196, 197 area. hasn't been able to get through it. happened last year. this year it was 192. here we are right in between that area. so i thi goldman sachs on earnings if they're as strong as what guy is talking about, i agree with him, i own calls. i think it goes to 200. >> dan, goldman or another name. >> i don't know why anybody thinks the quarter was strong for any of these. ipos were down 40%. so there was some banking activity. i'm not very bullish and the stocks are telling you that. they're all underperforming for the most part the s&p. the one name that interests me is morgan stanley. they have the banking but also the wealth management. the stock has been flat lined between 35 and 36. a quality franchise. >> let's do a little trade school action. german bond yields inching closer to negative territory. b.k. has made his way over to the smart board to explain what this means. i have been looking forward to this all day. >> this is b

and gax what do goldman sachs. >> goldman sachs paid bill clinton $200,000, a payment to him, the clinton family. just before goldman sachs began lobbying hillary clinton's state department. what's important to this is that the clinton folks have tried to say that they've accepted -- the clintons have accepted lots of philanthropic money that don't have exact interest with clinton's state department. this was not philanthropic money. goldman sachs in this case had business before the state department and was actively lobbying hillary clinton on that business. it's a little bit mysterious what exactly they were looking for but they were actively lobbying the hillary clinton state department just after they had given bill clinton $200,000. >> look he's a former president of course he is going to charge goldman sachs $200,000 and hillary clinton would not have been involved in making any decisions about jacks and there's no evidentiary link. >> it is hard to say the state department didn't do anything. what we know is that goldman sachs was asking something of the state department. bill clin

as we turn to a second goldman prize winner.uan: we want to turn to myint zaw an activist who used art to protest against a dam on the irrawaddy river that would have displaced 17,000 indigenous people and impacted millions more. welcome to democracy now. myint: thanks for having me. juan: tell us how you became involved. myint: when we heard about the proposed myitsone dam in the important watershed area of our main river inside the country we were very much compelled to act. back then, we were living under the military regime -- a quite oppressive military regime. we moved slowly, and we try to come up with the ideas and different approaches to raise awareness, and to communicate the message across to the people. amy: i want to ask about some of the problems you faced while organizing opposition to the myitsone dam on the irrawaddy river. this is social activist kyaw thu, who also participated in the protest. kyaw: to intimidate and subprocess, the intelligence service would try to find out who was organizing these events, and

market, the chief financial officer, goldman sachs analysts goldman sachs banker if anybody knows how to manage expectations, he should know that. i think what this really points to is the business is a young business. it is unpredictable. it has never been tried before what they are trying to do. this notion of direct response with the connection with a user who they maybe don't know that well. they know from their tweets but not a lot about their identity. the operating in the dark unable to protect what is happening with her very own business. matt: thank you very much, cory johnson. sarah frier also in san francisco and paul sweeney here in new york. when i said tomorrow we will hear from ed williams, i met today. and williams will give us his take on twitter's troubles today. that is coming up next. stay with us for that. ♪

>> goldman sachs. >> goldman sachs. nice segway. >> indeed. sector turned a corner. goldman's quarterly profits were at the best in four years while investment banking revenue came in at a 2007 high. goldman benefitted from increased trading when the swiss central bank removed it's cap on the frank. >> meanwhile citi group with a 16% jump in profit as legal infa infrastructuring costs dropped off. text messaging or texting is a declining revenue base forand data players continue to grow. 81% of operators citing decreased sms as their main concern. how can players make money in the sms market. you don't talk so much about the p to p texting. you talk more about the a to p. what is that? >> that's right. so what the operators are talking about here and their concerns in relation to the decline in revenue from text messaging is in relation to person to person texting. so me sending you a message, you sending me a message back. what isn't focused on or looked at by the operators is application to person. so this is where your airline or your bank

goldman sachs ticket public last month.is about -- credit three's is about to hold -- credit suisse. joining me now is michael foreman. michael: it is a bold investment fund that invests in corporate credit, loans of middle-market american companies. we create yield for our investors. a very low interest rate environment. we create interest rate opportunities for investors. alix: big banks cannot lend to these companies due to the dodd-frank rules. michael: banks are not moving out of the marketplace. ours just listed a year ago, it is the third-largest. we have about 23% of the market. we invest to noninvestment grade companies. these are nice size companies with good management teams companies that are well managed, well run. we do a lot of due diligence on those companies. our portfolios perform very well. alix: tilde return is 10% -- total return is 10% on the year. the yield is not enough to move the needle in that way. michael: we have been in the market since 2009 and we have more than doubled in that period of time.

goldman had a very nice quarter. the stock looks to be trading right around what would be a 52-week high. at this point, i don't have it up that much. at least looking at the assets. >> hit a seven-year high after jpmorgan reported results earlier in the week. four-year high on quarterly revenue. investment banking at 1.9. highest since '07. back to precrisis levels to find banking levels this robust. >> he said we have to maintain what we are doing internationally around the world. if you look at the european banks, they are going to pull back further from where they are now which is ground for them to make up. >> if you look at what was available to him, it's clear he had to go all in with what he had at goldman sachs. they did that and what appears to be growing in significant success. that firm has known success for a long time. they did buy back 6.8 million shares over the course of the quarter, as well. that's about $1.25 billion. i usually like to look at comp which came in at 43com ratio. >> 42 from 43. >> we

>> this quarter, i think goldman is longer positioned. the longer term story is a bit tricky with the global economic outlook still somewhat cloudy. goldman's going to do quite well. >> how much of this is predicated for the larger banks, not necessarily the goldman's of the world, but on higher interest rates. we know that the fed -- or we suspect anyway that the fed might take a little longer time after some weak data points before they start to raise rates. >> after waiting for several years it looks like we may wait some more. our outlook is not especially predicated on higher rates. although i will say i think that creates a risk for this group in terms of the consensus earnings outlook, for next year is calling for a rapid acceleration in earnings growth. >> where are the weak spots eric who do you -- are you watching? >> the weaker spots are among some of the regional banks where they're rate sensitive, the hope or maybe the expectation was they would get that benefit, and also several of those names, particularly in the southeast

jp morgan. >> buy. >> citi. >> hold. >> goldman. >> buy. >> jp morgan. >> buy. >> goldman, buy.aking out going a lot higher. >> citi? >> citi? meh. >> what do you mean, no one is meh on citi. >> bank of america, even though i think it's undervalued. i don't know where they're going to get the big boost. judge. >> josh? >> date goldman, marry jp morgan. kill citibank. >> that's the "game of thrones" version. i think you had a great quarter for everything goldman does, they smashed it and there's great and there's nothing bad you can say about their performance for a long time. but i think the stock tends to trade based on kind of banking and trading within each quarter which as we know is very lumpy. i think jp morgan wins no matter what. citi, no interest. >> i like the trading environment. think a lot of what you're hearing in from these banks tell you trading is good. >> cme. and how about wisdom tree. >> you want to play volatility, you want to play commodity volatility? you want to play increased trading, the exchange are rocking. i'm long cme for the contest. i think it's a

for me, that's what i will be listening for. >> goldman sachs of the names out there.intel, but i think -- >> dollar, dollar, dollar, dollar. >> the billion dollars off of what they expected. this goldman sacks is impressive because of the way the stock is trading. >> you like h ban. >> i like the regionals and huntington bank. it will deliver well-diversified. >> good stuff. thanks for joining us. power begins now. >> halftime is over. the second half of your trading day begins now. >> scott, thank you very much. welcome to power lunch. mandy is here and i'm tyler matheson. the biggest retailers, some of them are under the gun over their employee work schedules. the out come could have major ramifications for retail. >> searching for alpha. the big cap starts in the activist investors. our david faber has the story and joins us live from a major meeting in new york. >> earnings officially kickoff this week and a big bank day

for right now it stops goldman's lists.pretty big deal. >> and by screening for a dividend, dom, you are also screening out maybe the higher growing companies that don't pay dividends. >> what's interesting here, right, the whole idea of looking at this list here if goldman has their recommendations, whether you believe them or not, those are what their experts dlaim claim to be some of the best performing stocks but in this day and age, if you feel like you want to get paid to wait, some of the stoxz will do that for you with a better than 2% yield. that means they're all averaging what the dividend yield better than the overall s&p 500. that stands right now at about 2%. all these guys yield more than the overall index and at the same time possibly have growth potential if the analysts are correct in their price targets, guys. >> all right dom. see you later on in the show. >> some breaking news coming in on eny melon. let's get to kate kelly with the news. kate. >> the activist battle over bank of new york melon is heati

. >> originally goldman downgraded to a sell. it was erroneous. that was nuts.ut at least you know how the stock is going to react. if it does get downgraded it will sell off 4%. you know your risk to the outside. trying to make it a little lemonade out of lemons. >> thank you, goldman sachs. pop for yahoo!? >> we started off with the strength of china. alibaba on huge vol. on the other hand, yahoo! was up. up on very low volume. i think based upon everything going on with a lot of these chinese internet names, rumors were swirling. >> let's get some unusual activity. pete is flagging the eem. >> we have seen so much paper recently in many of these different eetfs. we have seen india. and bgk. >> what is that? >> vanguard european. if you look at the eem, the paper was outrageous right out of the gate. they traded 125,000 options. 100,000 of those were actually on the call side. the focus was the may 44 calls. rolling up. we have seen a big number of. eem strong of late. they are look to go really break out to the up side. >> your final was epi. >> it was. >> so

stephanie: that was my exclusive interview with the goldman fact -- goldman sachs coo, gary cohn.a was surprised to see him as forceful with his opinions as iesco goldman sachs is a big place. a team of economists job is to come up with their own expectations of what will happen to fed policy. stephanie: that is why i especially give it a lot of weight. he is not afraid to push you out there. and never seems like he is just telling the company. erik: i have to check to see if his view matches that when it comes to it jenny on will do about fed policy. he does crystallize the dilemma very well. stephanie: he brings up a great point. when you talk about the stocks that comprise the nasdaq, look at these companies, gary makes a very good point, many of these companies moaning and groaning that the valuations are crazy, they are part of our daily life. it is not like these businesses are going away tomorrow. erik: it does not mean they are necessarily worth what they're worth. just because they are part of daily life it does not mean whatever the case may be facebook, were go daddy, a

you're on the board of goldman sachs. goldman advises dupont. goldman advised kraft. do you respond to the charges? >> well, i don't get involved with who goldman advises. they don't let us know those things as board members. i think it was a mistake to break up kraft. a great global company a lot of issues that needed to do a transformation and any more than i thought -- i think it's good pepsico has been kept together and so i -- i think that it's really -- of course -- but i am not the establishment ceo i'm the person critical of a company not well run, okay, like a mcdonald's and they had to make a ceo change there, but i am going to be very supportive of companies playing it for the long term and i think that's what with we need in this country. sigh a lot of downward pressure on long-term investment and that's a worry right now and we don't have their research funds. the n.i.h. cut back 15, 20% in the area and not getting the investment in this country in science and research for the long term. and does -- will the shareholders stay with it long enough. that's w

erik: 50% is maybe not where goldman would want to be.a good deal higher than it -- 15% is maybe not where goldman would want to be. it's a good deal higher than it was a year ago. michael: it is significantly higher. and there is a lot less risk when you have doubled the capital and they think that that should start to be reflected in the stocks -- stephanie: there are people who never invested in financials because they felt like it was a black box, you never knew what was in there. and the fact that they are becoming transparent, this may open them up to so many more investors becoming comfortable with investing. michael: that is what they think. stephanie: michael moore from bloomberg news. erik: all right, it's a fight between goliaths and goliaths. two of the most successful investors in the world are taking on the u.s. government over fannie mae and freddie mac. bill ackman and bill berkowitz say that the feds have illegally seized all of the company's post profits. remember the government did bail out these giants, put them into w

goldman sachs. >> i forgot. >> that's another one i forgot.u did. >> united health today. getting better. >> do you know all of them? do you forget? >> most of them. >> visa's a dow component. >> i wish not. >> it is but i forget i forgot about goldman sachs. gog dog gone it. they are expected to report this hour. we are going to bring the results soon as they come across. >>> on today's watch list ipos of note etsy $15 a share. that gives the company a valuation of $1.8 million. they structured to give small holders the opportunity to buy shares. values the retailer at nearly $2 billion. boets etsy and party city will trade after today. economic data of note weekly jobless claims we're also be getting housing starts and building permits. all hits the tape at 8:30 a.m. eastern. >> new gate for ben bernanke this morning, sid dell investment group. bernanke chose is because it's not regulated by the fed. and when i talked to ben bernanke about this last evening, he will get a payday flat fee, no stake or any carry. steve schwarzman we're about t

. >>> he raises more questions about the clintons, this time, involving goldman sachs. and now, what are you talking about here? >>> well, what we found is that goldman sachs paid bill clinton, 2 million, that's a payment it him, to the clinton family, just before they began lobbying hill lar clinton's state department. they have tried to say that they have accepted lots of fill land trough if i can money, from interesting that do don't have it with a state department. clearly, the lobbying records, they had business before the state department and was lobbying her on that business and, it's mysterious what they were looking for. and just after they had given bill clinton $200,000. >>> what about the argument, who say, he's a former president he's going to charge them, $200,000, and hillary would not have been involved, in making any decisions and there's no link? >>> well, i think it's hard to say, that the state department didn't do anything, what we know, is that goldman sachs was asking for something from the state department, it was lobbying them, sure, bill clip t

goldman sachs is goldman sachs. and morgan stanley the big investment bank.t's a pretty formidable starting line-up for wall street when you're running for president. >> when a lloyd blankfein is supportive of a certain candidate, that his underlings want to curry favor with him, so they give as well. >> a lot of goldman guys want to support jeb bush as well. there's a huge jeb bush contingent at goldman sachs. we'll get into that if jeb bush announces. as hillary was likely to announce three days ago. which is very likely. jeb bush will have a formidable fund-raising machine as well. i will say this, a couple of points, when i'm talking to wall street guys, they say -- she'll have no problem raising the 2.5. the question is, does she want to raise that much money? that brings up all sorts of theories that maybe she's selling out to big money interests. she'll be hit with those charges. and the appearance of raising that much money might be worse than raising it. you don't need that much money to win. here's the other thing, when you're hitting corporations w

. >> goldman sachs reports first quarter results.orecasts at $4.26 a share on revenue of $9.35 million. analysts expect another strong quarter for the investment banking division but will focus on the trading business after jp morgan reported a jump earlier this week. >> citi group reports at 8:00 a.m. eastern. forecasted to earn $1.38 a share on revenue of $19.8 billion. last month citi's cfo warned trading revenue would be down in the mid to high single digits and suffered a modest loss in the swiss frank. citi and goldman were high ahead of the two important earnings reports. >> coming up we'll be tuning in to the russian president's call in show at 11:00 cet. don't go anywhere. >> netflix shares hit an all time high after earnings but what was it that got investors so excited? we break it down after this break. >>> the imf warns of a super taper tantrum in the bond markets when the fed begins hiking rates. while u.s. secretary treasurer jack lew tells cnbc he's concerned about the disparity between the u.s. and the global economy

they're tied with goldman sachs.hey did not dial-up risk from the fourth quarter area the value at risk stayed the same as in the fourth quarter. they are heading on all cylinders and they have more expenses leaving to come best expense savings to come. erik: we have a chart showing morgan stanley plus trading revenue. we do not have it. my apologies. you know what it shows. i would explain to everybody else. morgan stanley sales and trading revenue is something like $4.2 billion. it is above what we are getting from bank of america and it is kind of in line with what we are seeing from citigroup and jpmorgan. is that to say, given the point you just made an morgan stanley keeping the risk it is taken that is higher-quality revenue? mike: absolutely. i would take a dollar revenues today at morgan stanley than six or seven years ago any day. it is not without dialing up var . there got not all sorts of risky products. this is -- on a risk adjustment bases come at some of the best revenues morgan stanley has had. steph

goldman sachs and citi round out our week. goldman sachs down 0.2% on average. positive 38% of the time. you can call it the real outperformer here is citigroup which trades flat. it's a coin toss positive about 52% of the time. they all report before the bell. the regular trading session generally speaking since the zero interest rate policy began after the financial crisis these banks have not been at least a positive trade generally speaking in that time since 2010 guys. back over to you. >> as you were reeling each of those off, i checked them quickly. all but goldman is fractionally higher today going into these reports. thanks appreciate it. >>> let's bring in jack moore and another guest from the street.com. >> thanks for having us. >> discuss what we're talking about here in terms of the financials of this quarter. in theory interest rates are going up that should be a great time for the banks. >> the moment that happens, that will be great. they'll be able to jack up the rates quickly. there will be a lag between when they have to jack up the deposit ra

we wade through earnings from goldman and city. try to hang on to 55 and the ten-year around $1.08. netflix shares poised to open at all-time highs. they did beat expectations. netflix issuing upbeat subscriber guidance for the current quarter. we know what happened to the shares after the bell last night. up 12% to $530 and change. fpr with a price target of $900. i thought that $750 the other day was aggressive. >> i don't know what the implied multiple of 900 is. subscriber growth is what shareholders are most focused on. not earnings per share or anything else. there is no doubt netflix did better than its own estimates and many of the estimates of analysts that follow it. international becoming an important part of this company. the margins over there start looking worse rather than

citigroup, goldman sachs, mattel and health united. united health just crossing the tape. that company earning $1.46 a share. revenue there $35.76 billion. the street looking for $348 billion. >> that company, that's a big number. in a quarter. $35.7 billion in a quarter. anyway, they did raise guidance also to $615 to 6:30 and it had been $6 to 6.25. but they beat by 11 cents or so. so raising the year by 10 cents, actually, yeah raising the year by 15 cents on the low end, 5 cents on the high end. so he they already sort of beat. so i don't know whether -- i didn't look.

crude prices actually managed to take a breather at the open after a supplies note for goldman sachs made the rounds. goldman's takeaway say they need to stay lower longer to have impact on production but even that sentiment couldn't hold back today's rally. for "nightly business report," i'm jackie deangelis. >> one thing that could eat into that rally a bit, late this afternoon, the american petroleum institute said u.s. crude envenn toirs more than expected. 3 barrels. the estimate was 3.5 million. on the flip side "the wall street journal" report that royal dutch shell in talks to buy bg group, a large british based oil and gas producer. market value after $46 billion and that would make this one of the year's biggest mergers if it actually happens. the potential deal coming as both energy companies have taken steps to adjust to falling oil prices. joining us now to talk more about crude oil prices is francisco blanch. head of global commodity research at bank of america merril lynch. welcome with us. bottom for the foreseeable future do you think, or one of thes where it's going

go goldman and citi getting ready to report why now is the time to buy the big global bank. >>> intel coming in online on earnings while revenue fell short of estimates. stacy smith warning on weakening pc demand just moments ago on "closing bell." take a listen. >> our prediction for 2015 is that the pc market will be down in the mid single digits. we think we're going to be down a little bit this year. a variety of reasons to that. a very good last year with the xp refresh and also seeing economic and currency volatility. as i think about the longer term for the pc market, we're planning for it to be more flat than a growth market. >> and waiting for the full-year guidance which they had pulled when they lowered their quarterly guidance and revenue is going to be flat and gross margins plus or minus a couple percent. >> pretty conservative all the way around. stacy smith, one thing he addressed is the idea of the pcs. everybody is talking about what

goldman strategist david kostin. ♪ >>> good tuesday morning. "squawk on the street" i'm carl quintanilla with sara eisen, simon hobbs, david faber live at post 9 of the new york stock exchange. few things working in the market's favor today. deal activity eurozone pmi's pretty good and dovish talk. we'll keep our eye on than dow's up 43 points. >> our road map for the next hour. stocks in the green today. one day ahead of the unofficial start of earnings season. david kostin chief u.s. equity strategist for goldman sachs, live on this set with his outlook for the markets. >>> plus speaking of earnings season, negative expectations are piling up but that might not be a bad sign for stocks. >> after a $6.4 billion deal igt one of the biggest names in gaming. the ceo of igt will be with us live to give us his look -- his outlook for gaming and what's ahead for the new company. >>> later, the ceo of el ppolo loco, his take on fast casual the run-up on the stock and how the company's affected by the california drought. >>> a nice rally on our hands

i know you like citi and goldman sachs. me go back to jpmorgan and wells fargo for a second here. one of these two that are better positioned. >> well, look, wells fargo is the bank that everybody in the globe wants to own in the u.s. they're the big domestically focused institution. they've done a great job for a long period of time. i won't tell people not to be interested in owning wells fargo. when you combine valuation, capital markets activity, and jpmorgan getting on top of expenses, that combination makes jpmorgan significantly more investable if you have it today. >> you heart citigroup and goldman sachs. both coming out with numbers on thursday. what are you expecting here? >> well, we have estimates above the street on both of them. some of the same numbers from goldman that we saw at jp on th jpmorgan on the capital market industry. fixed income. equities came in good. citi it's a different story. they have very good news out of the government stress test this year. there will be a follow through and a positive

companies like goldman sachs, boeing, have given money to the foundation and in the case of goldman sachs to her political campaigns and to her personally. they have paid her last year for two speeches. she runs about $200,000 a pop. they made sure there is opportunity to give hillary clinton anywhere, they have done it. which seems to be at odds with her message about being a woman of the people. if you're getting corporate money and really backed by goldman sachs, which was vampire squid on the face of america, what does that say to the people voting for her, daniel? >> absolutely. the clintons have received something like $208 million from the financial service sector since getting into politics in 1992. that is between them and democratic party and different campaigns. that is what they received from the financial services sector. goldman sachs of course being a huge investor, so to speak in the clinton inc. and the clinton empire. as you said the goldman sachs paid hillary clinton directly for at least two speeches that we know b they paid bill clinton for eight speeches. we know the

>> the answer there is goldman sachs.evenues in m & a from goldman sachs to be north of $800 million. the number two players is morgan stanley. they're almost double the number two competitor. >> yeah i guess the bigger issue is as of friday from general electric, david, we now have whatever it is $16 a billion of financial assets on the block for people commercial leasing and lending mortgage and consumer financing. who buys that? what are we going to see over the next six months? is there any way in which shareholders or investors can take advantage of that? >> well actually wells fargo had an interesting deal. they picked up around 10 billion of the assets which i think is accretive for them a nice transaction, but i think the rest of it might be dispersed among hedge fund private equity, and the like. that would be my guess. >> there was a lot of editorial comments as well that effectively gee -- one of the reasons that ge was forced ko exit banks was because of the additional regulation. whether it was a good or bad

now, goldman is the first major bank. ali velshi of "real money" is here, and tell us more about this, please. >> i always hoped that i would never have to talk about bit coin again so this investment by goldman might be a turning point, or it might take you back to when rupert murdock invented my space. but it doesn't generate bit coins, but it tries to improve consumer payments using bit coins. the banks are very interested in this, because it allows people to pay use being bit coin without going through a centralized operation like visa or paypal. only one takes bitcoin but the idea that you can and a goods and services using bit coincidental is attractive to poem. >> can you break it down, what is bitcoin? >> well, bitcoin is virtual occurrences, and it allows people to buy things with goods and services. there are bars and public relationses places that allow people to come in. let's say that you don't have a credit card. nyg nine and russia, their credit cards are not accepted in other parts of the world. you want t

mark: the fact that goldman sachs -- scarlet: the fact that goldman sachs is publishing these short-sellersthat say about what the smart money is doing echo david: they said that they were reacting to interest from their clients. equity valuations right now are arguably the highest they've ever been in the last four decades outside of the tech bubble. a lot of people are thinking now is the time to start noticing in on highly valued stocks or stocks right for some kind of internal risk. responding to their clients -- mark: isthey have a pretty complicated methodology. the higher the valuation on multiple different metrics, that will help add them to the list. one interesting method they use -- goldman has a list of the most shorted stocks they keep in an index. that index has outperformed the market over the last fears, where is another index they have -- over the last few years. by under weighting them or avoiding them, they are signaling -- that index has trailed the s&p by 12% since the beginning. they said focus on that and they have models that indicate what stocks have internal risks.

a lot of goldman sachs aren't ten years old.ad performance issues both equity and bond funds. gerri: when you say issues, what do you mean here? lauren: underperformance. they're trailing their peers and their indexes over the long-term. gerri: okay. so when you sit back and look at this, what is the lesson to draw? lauren: well, you mentioned the fees. you know, morning star has shown time and time again the less you pay for a mutual fund, the more likely you're able to outperform. that's a number you want to keep a close eye on. gerri: if you're a small investor out there what's your advice when choosing a mutual fund? part of this story, i believe, i'm not sure, you tell me if this is true or not vanguard is a big index company. index funds are doing very well compared to a manager picking stocks. is that's what's driving the results here? lauren: well index funds have generally outperformed actively managed funds in recent years. that gives vanguard a leg up. even their actively managed funds have done well. they're helped b

the image allegedly of goldman at -- goldman dressed and drawn endlessly -- androgynous lely. >> there be a stigma attached to it. there may be other victims out there. stephen: she used an e-mail. police believe she used these addresses to arrange other hookups, not intent on sex but robbery. how she could have pulled it off, we found plenty of ads with individuals saying come in through locked doors. david's fingers were bound in zip ties. they found the same type in goldman's apartment. police acknowledge one of the biggest obstacles to tracking down any other potential victims is embarrassment. keep in mind david had a wife. abc 7 news leon: a student has admitted to hanging in news from a tree near the student union parent the prestigious private school did not identify the student, citing several privacy laws. if the student -- the university said the student is no longer on campus. he will face a conduct review ranging to expulsion. alison: a judge dismissed all of the charges against 58-year-old anthony and he walked out of prison today. friends and experts cannot determine if

morgan, goldman sachs, and citi. quite a mixed bag.ine: the different banks also had different models. chris: obviously investment banking has come back in the first quarter. the banks which have done well you saw both goldman sachs and jpmorgan on the back of that. credit has been week. that hit bank of america and citigroup yesterday. equities pretty robust as well. in traditional u.s. banking pressure, because margins continue to come down on the back of a very low interest rate environment. everybody is waiting for that moment when the fed pulls the trigger on the rate rise. francine: is that going to make the difference between the men and boys? if you get that wrong, it will have an impact on earnings. chris: one of the problems i had is that everybody is talking about the impact of a 100 basis point rise in rates. the clients i'm talking to are questioning whether you will see a rise at the short end. at the long end, we don't know what the impact of rates going up is going to have on things like loan quality and loan demand. we

goldman stock open this morning about $200. the first time this is happened since the height of the financial crisis seven years ago. a gyro copter landing in washington raising new questions about security. a florida postal workers flew through restricted airspace yesterday and landed on the capitol lawn. doug hughes brought letters for congressional members. charges against him are pending. mario draghi gets attacked and now you have a copter on the lawn of the white house. what the heck? shares of blackstone on the rise, up 3% after the company posted another blockbuster quarter. jumping 99% as assets swelled past $300 billion for the first time. much of blackstone's clout lies in its real estate business. less than a week ago, we heard that the firm flexed its muscles again when it teamed up with wells fargo to buy $23 billion in property from ge. with us now is blackstone cofounder and ceo thomas steve schwarzman. also, erik schatzker. -- cofounder and ceo, steve schwarzman. you guys are on a roll. you are an earnings mach