written on. >> so tell us about ibm watson. you put your text in there, and then what happens? >> correct. you put your text in, and it gives you some personality insights. it tells you the feelg and emotions around what you're writing, and it's also the grade level. >> what grade level do you want to be? >> you want to be between three and nine. >> wow, i think actually i won't say the grade level for right now, but just the idea of speaking in normal language, it's how we should think about everything, right? if someone comes in and speaks in jargon, i think the world is different now. you're not seen as smarter as maybe perhaps you were many years ago. people are just thinking, i don't understand what you're saying. just speak in english. >> relatable. >> plmake it relatable. >> you can take a complex concept and make it simple, that's a skill now. >> great advice from both of you who have both built successful companies. congratulations on your careers as well. >> thank you. >> thank you. >>> this week's your biz selfie com

this is ibm's watson.tening and then writing an original song, tailored to a specific mood. >> we'll do a darker or moody, sad version. >> so it listens to this piece, and it deconstructs this piece of music, learns from it, and gets inspired by it. >> reporter: kpur scientist built the watson beat program here at ibm's austin, texas, campus. >> and then it adds on top of it the layer of emotion you want it to portray. >> to say something is happy or sad really depends on the person. >> to some degree, yes. we can only take it so far. >> reporter: this musician is teaching watson to convey emotion by training it to recognize musical patterns. happy or upbeat songs are more likely to be based on major chords. sad is typically expressed in a minor key. >> this is revolutionary, you think? >> for sure. this is the cutting edge of music. >> reporter: music has been moving into the digital age for decades. technology has created more efficient recording methods. and spawned an entire genre of computer generated

meanwhile, a company called ross intelligence built the first robot lawyer using ibm's watson software lawyer. in six months, if there isn't a movie called "robot lawyer" or one of those from "wings," i'm setting fire to my hair. are you worried, professor? >> i'm not worried. a lot of med eke cra lawyers should be worried. robots can do a lot of work they do and charge too much money for. creativity hard to bring about in a lo bot. >> hard to do sexy tv shows for robot lawyers drinking martinis late at night. >> they short circuit. >> maybe they will drink motor oil. i am obsessed with artificial intelligence and think it's a bigger threat than terror. am i crazy? >> let's put that question aside. i like the story. why should robots only be filling in for low wage low skilled jobs packing boxes for amazon? let this be an equal opportunity thing. i like that part. >> sounds to me like they're replacing paralegals, not really lawyers, okay by me. i don't know many paralegals. >> they still have to go to law school, i think. >> they do? the robots? >> ted cruz. the opposite of a robot. y

collaborating with ibm watson. >> primarily, what you see is the colors matching the tone. >> speakingwn. how it flamboyant dressers like lady gaga respond to zac posen -- >> gaga for the dress. >> reporter: the designer wouldn't discuss the price but it would make an amazing wedding dress if you want to get married at night. >> she was the light of the party. >> reporter: cnn, jeanne moos, new york. >> the phrases that a person could light up the room could be taik taken literally. >>> spacex launched a rocket to put a communication satellite in orbit and successfully landed that booster on a stage on a platform at sea. >>> rockets impact and upright is crucial to conduct the cost of spacex travel to be reused. the company has compared it to launching a pencil over the empire state building in a windstorm. and then landing it upright anyway shoe box on the other side. i think that comparison definitely puts it in perspective for us. that wraps this hour of "cnn newsroom." thanks for being with us. i'm george howell at the cnn center in atlanta. for our viewers in the united states "ne

the design has collaborated with ibm watson. >> what you started to see was the color shift to matchweets at the time. >> all the tweets and everything people are thinking all the emotions like joy and excitement and thrillness. it's going to show up. >> she couldn't sit down. she had to be transported by mercedes van. how did people like lady gaga respond? >> went georgia for the dress! >> you can buy one custom designed. they didn't mention price, but it would make an amazing wedding dress if you want to get married at night. >> she was the light of the party! >> oh, they don't look comfortable but they're beautiful. the next hour of cnn "newsroom" starts now. >>> and good morning. i'm carol costello. thank you for joining me. indiana 2016, the death for the ted cruz campaign. and a new beginning for donald trump. today he wears the party's banner "presumptive nominee." trump stands fewer than 200 delegates away from officially clenching the nomination. he steam rolled in the hoosier state winning 53% of the vote. he picked up all the delegates and snubbed up cruz's last hope. >> b

microsoft car tan in a, with, wi this new platform that gotha announced called viv thesese are -- ibm watsonse are alla voice activated artificialrtifia intelligence in the backgroundac and that's going to become partm of our lives.of our lives. when we get into our car, we cac say, you know, turn on the rad radio, turn off the radio. >> i think that the thing thathg scares a lot of people we mightg understand if we're typingwe' something online into a search a engine they'll store that, and , we might see the ads. but the fact that any coveringer we might be having right now r everybody has got their phone ip their hasn't.their has >> i'm trying to figure out how the to turn it off on facebook.b i'm in the setting. >> here's a question.er when i was thinking into e'thisi one of the thing it said the googles of the of the world areo saying we don't do this. >> right. >> some say this is transmitteds through wi-fi setti ings perhap. is it as simple if we can turnar o wi-fi we can protect our proct information a little bit more.lm the cell network turning offng o wi-fi in your home is not goin

and in new york, ibm researchers have developed watson, an intelligent software system at the forefront can understand somebody's personality type. it can look at e-mail and tell you what is the tone of the e-mail, you know what kind of , messages are coming through. if you want to read them or not. they can look at, for example a , big encyclopedia, extract the concepts among those concepts. narrator: watson operates in the world of big data extracting , knowledge from the billions of facts and figures from inside cyberspace. >> i look at the world from the point of view of the amount of data that there is and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore we are not able to make the right decisions. so for the industrial revolution to me the ability to , have a much better understanding of the world through all of the data, making and therefore making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence of medical professionals, helping doctors treat the mo

if you look at alpha go computer and other various things that ibm and watson is doing, we are very close to the point where cognitive machines will analyze data and precipitate the patterns and say present to the human overseers there are 50-60 signs that suggest maybe investigation needs to be initiated to look at that person or that person or that organization. as far as encryption is concerned, nadine and ai agree. not so much because of the balance of cost. i have written i don't think backdoors and mandatory encryption keys should be provided -- should not be provided because the risk of integration by bad guys is worse than the benefits of reading this information. basically that data stream is going dark, ladies and gentlemen, and it is very simple. even if you force all of the acknowledging companies, apple and companies overseas, you can generate your own encryption algorithm so it will not work. an interesting thing however is that being able to discern that somebody is using the strongest possible encryption, that is customized, it is an interesting tall tale sign because no m

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. >>> the big focus for markets, janet yellen's speech. we asked what you expected. joining us from minneapolis is jim cahn at the wealth enhancement view. >> if you look at the data, you have to believe that there is going to be a rate hike between now and tend of the year. right now market is pricing at 30% chance of a rate hike in june. we think that is probably a little higher and the market is discounting some positive news we've seen south out of the economy which may lead the fed to believe things are closer at hand. >> do you think we stall out here? >> it is possible. i do think there is going to be more volatility. the market is under pricing we believe this the probability of increase in interest rates. increase in interest rates reduces value of other assets like equities. so if we do have an increase in interest rates we do think we'l

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. >>> welcome back to "fast money." berkshire hathaway vice chairman piling on to the business strategy earlier today. take a listen. >> they raised a heart drug. he said, i'm correcting underpricing. you raise the price, is it absolutely necessary, 500%, and say you're correcting on it. underpricing, he's like the joan of arc. i would call that demented. >> munger calling valeant a sewer. bill ackman joins me in a rare and exclusive interview and said this. >> company's made some mistakes. i think where munger is wrong, it's wrong to indict an entire company on the basis of a few mistakes, and a leader that is no longer with the business now. >> so who is right on valeant and can that company turn itself around with a revamped business model that doesn't rely on increasing drug prices? that's the central question. not only the drug pric

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. now businesses can get more out of their data. you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck. shoah, ha ha.ew artist. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of billboard music awards moments, simply by using your voice. the billboard music awards, live sunday may 22nd, 8/5 pacific, only on abc. >>> welcome back to fast money quoeg. earnings alert with mary thompson. >> more than 7% after-hours, the video game maker pushing a big quarterly beat. as of the end of march, they sold more than 14 million copies of "star wars" games to retailers, and the sequel on the way. monthly active u

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. now it's more than aet mnit's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next. >>> news of a spin-off and merger, could the move signal bigger isn't necessarily better when it comes to meg whitman's company. david faber has all the details back at headquarters. >> melissa, that's right. hewlett-packard enterprises, news of the deal, a spin-off of the enterprise services business and merge it with csc. you can see hewlett-packard up over 10% for its part csc up over

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.nd help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. >>> coming up in 19 minutes on "power lunch" the biotechs are down this week, and is it a buying opportunity or are the stocks headed down low eer? >>> and one of the stock categories bullish on amazon says it is going to be a 3 trillion tlrz bill -- 3 tr$3 trillion business, and should you buy? >>> and with will look at how business and conservatives will back trump, and if the that is going to happen? back to you, scott. >> thank you, michelle. welcome back to the halftime report, and gold is higher today after the legendary investor stanley druckenmiller called to sell stocks and buy gold at the sohn conference yesterday. jackie dean jeangelis is up wit report. >> we are seeing a bounce in the goal gold, but -- gold, but it is a quick run, and ki see why people are cautious getting into the gold trade, and do you? >> yes, u but more r

and in new york, ibm researchers have developed watson, an intelligent software system at the forefrontsomebody's personality type. it can look at e-mail and tell you what is the tone of the e-mail, you know, what kind of messages are coming through. whether you intended them were not. if you want to read them or not. they can look at, for example, a big encyclopedia, extract the concepts among those concepts. narrator: watson operates in the world of big data, extracting knowledge from the billions of facts and figures from inside cyberspace. >> i look at the world from the point of view of the amount of data that there is and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore we are not able to make the right decisions. so for the industrial revolution to me is the ability to have a much better understanding of the world through all of the data, and therefore making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence of medical professionals, helping doctors t

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. . >>> welcome back to "power lunch." i'm sue herrera with this breaking news bulletin. mexico's foreign ministry approved the extradition of el chapo guzman. since he was captured, the united states juaned him extradited back here. mexico was pushing back against that. but right now the mexican foreign ministry has indeed granted the u.s. request to extradite el chapo back here to the united states. we'll keep you posted. there is no date or time line yet, tye. when we get that or if we get that, we'll bring it you to. >> i expect there could be appeals involved here. he was recently moved from the prison from which he had escaped to another prison that was closer to the u.s. border maybe in preparation for just this kind eventuality. there he is today on the day of his arrest. >> you know, in this latest person that he was in, they would move hi

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.e social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. now businesses can get more out of their data. technology moves faster than ever. the all-new audi a4, with apple carplay integration. >>> today on trading nation, we take a look at two old, boring sounding stocks but have seen very excitining returns, get the names, how to invest in them on tradingnation.cnbc.com. more "squawk on the street" coming up. there's no one road out there. no one surface... no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> after an 18-month decline in oil prices, just what is the impact and what has it been on u.s. drillers? and

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working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.ends. now businesses can get more out of their data. that's what the ibm cloud is built for. >>> welcome back. among the stories front and center this morning. mortgage applications fell by 1.6% last week according to the mortgage bankers association. refinancing activity was actually up slightly as mortgage rates remain near three-year lows. new purchase applications fell. >>> google will introduce a voice-activated home device today according to the "new york times." that will happen at the google developers' conference. it will be called google home and it will compete with devices like amazon's echo which has sold 3 million units already. verizon in striking unions will meet this week in washington with assistance from the labor department. officials say no public statements will be made as the two sides try to work out their differences. >>> kentucky derby winner nyquist returns to the track this weekend looking to win the 141 preakness stakes, the second leg of the triple crown.

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.cial data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. we like that. not just because we're doers. because at sheraton, we're changing. big things. small things. spur of the moment things. ♪ changes you'll notice. wherever you are in the world. >>> it has been a rough couple of years for hedge funds according to data provider hedge fund research. the average fund was down 20% in 2015 and was up 0.3% through april. alpha magazine is out with its 15th ranking of. world highest hemp fund managers. citadel's kept griffin. and james simons. the names are well-known. it was the year of the computer guys. >> yes. >> if you look at the performance, the people using fundamentals or macro to invest really had a tough time. the computers seemed to nail it. it was pretty amazing. renaissance, funds were up 15, 16%. citadel's was up to 15%. impressive year for the clubs. >> david tepper doesn't trade with a computer. >> no. >> he's

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion.to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. they are. do i look smarter? now businesses can get more out of their data. yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab. europ >>> the dollar getting a boost. climbing towards a two-month high and growing expectations for a rate hike. boris schlossberg. managing director and a cnbc contribut contributor. yellen closed, in your mind -- have to believe it will be june or july. >> she did not say no. usually she is the biggest dove in the room and always pours cold water over any expectations.

watson. so you have to go back to ibm and say where are some clients.ll i'm saying is the market it's not -- it's acting incorrectly. and if we look at individual companies, a lot of them are doing so much better than the stock market indicates. that's what i'm getting at. and they're being captured by all sorts of different algos that make no sense. >> to your point one name acting better, or at least performing better is depot raising their four-year guidance posting better than expected q1 comps up 6.5. tjx jim mentions the home of tjmaxx and home goods also meeting quarterly earnings. depot guides comps up to 4.9, which would imply -- they raise comps up 6.5, and 7.4 in the u.s. comp guide to 4.9 is above expectations above the high end of the prior sfwl the stock was up very, very big earlier. i think what will happen is they'll tell a good story. and people say well why was it down, and the answer is someone kind of painting the tame. other people see it was up big yesterday. now, it's not children's place, which wasn't part of the index and plce

watson in particular. >> i don't think we're paying much for the opportunity. >> the opportunity to be in shares of ibm?imism in the current price of the shares. what is it you like about the artificial intelligence there? >> i like the idea of using art official intelligence because we're so short of the real thing. [ laughter ] >> bill, you've spent some time working on artificial intelligence and taking look. what do you think is interesting in the arena. you think it could be a real issue for humanity if things get out of control >>well, in the even 10 or 20 year time frame artificial intelligence is going to be extremely helpful. and the risk that it gets super smart that's way out in the future athan probably we're tal about. for the first time we're seeing that computers can see as well as humans. that's incredible. if you combine that with the ability of arm-like manipulation they can make us far more productive but then the job market has to adjust to that. kbo google, facebook, apple, microsoft are moving ahead at a great speed. that's very exciting. the speed is faster than it was five years