but goldman sachs did, this is where the story thickens. time theychs at the are putting the russian in jail for stealing their high-frequency trading code, they think they are going to get into the game. that is why they care so much. they had a change of heart. something is going on. something interesting right now. an argument about our role in society. can we function as an institution of people do not trust us? >> are they losing the trust of the public? >> i think they lost it way back. do they need to get it back? it is partly a practical argument. you could argue reputation does not matter anymore. all that matters is the brute force of the financial system. >> when michael lewis tells me debate is going on, i assume somebody has told him. >> yes. debate ism of this the argument around how they should behave in the stock market. some new guys came in and took over goldman sachs's stock market business and they looked at the way goldman conducted itself and the way the exchanges were rigged and they said they had two observations, on

inside goldman sachs, that was not universally popular. ron morgan had come in -- >> they are not going to invest in the exchange. >> they don't want to have -- they are going to take their customers and ordinary invest yours and send them to the exchange so they can't be exploited. so that cost wall street a lot of money. i don't know how much, $10 billion a year is being scalped. unnecessary intermediation is happening. standing in between buyers and sellers when they could come together at a better price without anybody in between. they can take away a lot of money. some of that money would have been goldman sachs's money. it is a decision to sacrifice short-term profits. >> you are saying this is a bigger debate then high-frequency trading. it has to do it with how we conduct our business and what is at risk for us. >> i and they figured out their business is hard to do without people trusting them. they figured out they can't really compete for a lot of reasons. the trading game is affected by smaller groups of people than big banks.

so with goldman sachs did, this is where the story thickens to me because goldman sachs clearly at the time they're putting the russian in jail for stealing their supposedly precious high frequency trading code they think they're goal to get in the high frequency trading game. that's why they care about it. they clearly had a change of heart. something interesting is going on inside goldman sachs right now. >> rose: what do you think it is. >> an argument about what our role in society is. can we function as an institution if people don't trust us. >> rose: do you think they're losing the trust or they lost it. >> they lost it way back. the question is do they need to get it back. and it's a practical argument, it's partly a moral argument. you can argue that reputation doesn't matter anymore, what all matters is brute force in the financial system and who cares whether people think we're screwing them or not. >> rose: michael lewis tells me there's debate going on in goldman sachs i assume someone has told him these a roaring debate going on here trying to figure out who we are and wh

you have goldman sachs, j.p., morgan stanley, rbc, .ernstein's - >> if there is a platform, you have to trade off it. , we are running out of time. i want to follow up on stephanie's question. is there a danger of taking goldman sachs at face value? if there's one thing i have learned is that goldman's true intentions never reveal themselves immediately. >> true that, my brother. >> i think there's an argument going on inside goldman sachs. i think the supporters of iex inside goldman sachs of opposition inside goldman sachs. and dark dark pool pool is the antithesis of what they are doing. how long do they close their dark pool? i think there is movement inside the place and i don't know what it means completely. it is hard to know. let's just wait and see. >> that is fascinating. thank you so much. michael lewis. >> they need a movie. >> no, plays. -- please. >> i want to thank all of you. michael lewis, author of "flash boys." it has been great to have you back. katsuyama. gentlemen, we thank you. and honest,

sachs, you never count goldman sachs out. money in markets. >> in these books you have a beautiful chapter about an egg salad sandwich at a diner somewhere, do they still have that? >> goldman sachs has their feet on the ground, depending on where the markets are. we have for the first time in a long time a very interesting dynamic where morgan stanley has a different strategy and they are doing well. and clearly with these numbers, goldman sachs, who you would have thought would have a tough time, i am not quite sure how they beat the estimates. but if they are beating through the training estimates, this is a very tough trading environment, and they have a way to make money. >> part of this is the legendary goldman sachs policy, to decrease staff by one percent. >> they do this regularly. trading accounts for 60% of revenue at goldman sachs. you know these companies better than anybody. 30 seconds, what does goldman consistently do right? >> they go from the bottom down and empower people at the bottom of the food chain. th

sachs and 2009.nd he mails himself some of the computer code, which he has been working on and goldman sachs sees this former employee and goldman sachs panic. instantly in a matter of hours and days, cause the fbi and the fbi instantly arrest him and a trial is held eventually in the sentence for this and in the end his conviction was reversed, but only after he spent a year in jail. so, i. there were three questions. we've just come through this financial crisis and we've had a lot to do. the only person who ends up in jail is the person who they won't put in jail. and i thought that's very strange. why? so what did he do? what was such a big deal that he deserves a better deal and people don't have any kind of criminal exposure. so the second thing was the prosecutors who are after them, they could get back on the street because it was so dangerous to have someone who had access to this because it could be used and it could be used for disrupting markets and if this code was in the wrong hands whe

i thought, goldman sachs is the right hands? so we're supposed to believe that these wall street firms have code that can be used to do really bad things in the market but that's okay. and this guy who is left -- his hands, we can't trust him. have to put him in jail so he doesn't hit a button on the computer and crash the market. so that made me curious. the other thing was he was engaged in high-frequency trading. i don't think the term hit the newspapers. everybody says they know what it is but i didn't know what it was. half to the people on wall street didn't know what was. that was clearly so valuable it caused goldman sachs to hit the panic button. call the fbi? you don't do that an wall street other. ways to handle the problem. so, i started to ask around about what this was? high-frequency trading. the is where i stumble bed upon brad this main character of the story. that opinion he had been wandering to you the office office the biggestman managers on the planet and tell them how he fund -- what he found out about wha

surprise, surprise, goldman sachs wins. >> it was a good quarter for goldman sachs but you also have to look at what it is coming off of. the bar was reduced throughout the quarter. they beat lowered expectations. if you look at results, and upside surprise but the quality beat question. i wouldg and lending suspect is the big driver. incentive income which can be volatile helped. >> and yet goldman sachs did it again. it beat by a long shot. what does goldman consistently do right that the others don't ? >> it is relative to her expectations were. earnings were down a bit year on year. it's still a pretty challenging revenue environment and fixed income was down 11%. that was better than what we saw in the big bank peers. that is all good news but at the end of the day, you have to take a step back and say this is still a pretty difficult environment for them. four dollars of earnings is well below what they would like to be earning longer term. >> fixed income is traditionally where they score quarter after quarter. it is all just trending downward. fixed incomehat for goldman sach

goldman sachs pulls one out of their hat every now and then. make this is it. morgan stanley model will be interesting to see where they come out on that. those are the two things i'm looking for, which model of an investment bank going forward, take the bank banks out, it will be a battle between more gag and goldman. melissa: dick, before we run out of time you make a point that the trading business is tough and look at a market that is tanking today and lost a lot of confidence, how do you think that impacts these guys going forward? >> well i think in an answer it is very negative. i think charlie's point on trading at goldman sachs is the most fascinating one. basically they're getting off the new york stock exchange. they're closing their dark pool. and i think they're going to take their trading business overseas away from the u.s. regulators. so i think watching what goldman sachs does in trading will be one of the most fascinating things this year. melissa: very insightful. dick bove we always appreciate your time. thanks for coming on. >> that's a gre

goldman sachs and morgan stanley also reported earnings today.s of both companies soaring after they beat analyst estimates on top and bottom-line reports. for goldman, it was by a wide margin. bill cohen weighed in on surveillance. >> never count goldman sachs out. they know how to make money. >> you have the beautiful chapter where they are having an egg salad sandwich in some diner somewhere. are they still having egg salad sandwiches? >> they have their feet on the ground depending on where the markets are. for the first time in a long time, an interesting dynamic where morgan stanley has a different strategy. they are doing well. with these numbers, goldman sachs, who you would have thought in this trading environment would have a tough time, i'm not sure quite how they beat estimates, but they are beating them. this is a tough trade environment for them to figure out how to make money. >> part of that is the legendary goldman sachs cost reduction. they decreased staff by 1% here. >> trading accounts for 60% of revenues at goldman sachs. you

sachs, andoldman goldman sachs, let's concede, is a pretty smart organization, i think i would have difficultysuading my board of directors, if i were the chairman, to accept the $550 million settlement and not be able to give reasonable assurances that goldman sachs was no longer going to be under the sec's radar for a while or past conduct. but the division director said that the two were not related. you have to draw your own conclusions because i was not present. >> jim, do you believe the sec should have gone after john paulson? do you believe the sec should have gone after more senior executives at goldman sachs? >> i believe that the sec stopped its investigation way too early and that some of the people that you mentioned could well have been defendant had the investigation proceeded to its more natural conclusion. >> jim kidney, former sec enforcement attorney, reflecting on his almost three decades at the agency. he was a frustrated man. we reached out to the sec for a comment, and it may not surprise you that the commission declined to comment on any of them kidney's jim criticisms,

sachs patent. instantly in a matter of hours calls the fbi and the fbi instantly arrests sergey aleynikov and a trial is held eventually. he is sentenced to seven years in jail for stealing goldman sachs computer code. in the event it was reversed and he only spent a year in jail. what caught my eye was the three questions. one was we had just come through this financial crisis which goldman sachs had a lot to do with and the only person who ends up in jail as the person the goldman sachs once put in jail. i thought that's very strange. why? what was such a big deal that he deserves to go to jail but people who tanked the entire economy don't have any criminal exposure. the second thing was the prosecutors said after he was arrested he was put back on the street after pill because it was so dangerous to have someone who had access to this computer code. the code could be used, can't remember the language but the effect was crash the financial system and disrupt markets. this code was in the wrong h

. >>> dow deluge, what results from dow stocks at general electric, goldman sachs and united health care, say about the industry and economy, industry, finance and health care. >>> and every do something as simple as download a coupon for cherrios? well, you just gave up your right to sue them in court. >>> and stocks the best week in court. a list of under the radar names that could see double digit returns. we have all that and more tonight on "nightly business report" for thursday april 17th. >>> good evening, everyone, and welcome, a triple play for earnings today, three dow components, big ones, general electric, goldman sachs, united health care, representing three very distinct and vital parts of the american economy gave us a pretty good idea how the economy shaped up in the first quarter and what may lie ahead. profits in general electric made it the best today. goldman sachs beat closing in the green, but for united health care, its shares were sent slightly lower. but that is only part of the story, mary thompson has more. >> reporter: first quarter profits fell in all three t

a job killer -- are you a buyer or seller of that or goldman sachs stock? alan: the floor is yours my friend. scott: go ahead alan. alan: i'm a believer in goldman sachs because their financial institution interest rates are low. earnings come out very soon. looking for goldman to go to $200. that's 20% higher than we are now. to get to the min- max wage situation--all of the minimum wage workers in america combined made half of the money of wall street bonuses in 2013. think about that. scott: and who's fault is it that we've had the largest gap between rich and poor? alan: i'm just making a point! scott: i agree with the goldman sachs call. we're at the bottom end of a large up trend channel. if we get below 163 i don't want to be in anymore but as long as we're above that it think it's ok. alan: so, goldman is right and a higher minimum wage would help everybody? scott: no...the minimum wage argument is only an argument because the economy is so bad.we wouldn't have to worry about it if the economy-- alan: the stock market's not bad. scott: you're changi

the ones that were absent were goldman sachs and make up america.they came in through other avenues. crash backward from the in 1929 and noticed jpmorgan, who is arguably -- who is the most powerful bank in this country and the most powerful lyrical, financial actor. he died 100 years ago, but what , as fared in his legacy back as 1907 through jamie dimon hoss relationship with obama more recently, has been a very apparent apparatus and the connection of the politics and finance, which i believe has no separation line. from talk about the creation of the federal reserve. happened.ic in 1907 teddy roosevelt did not bust banks. you busted a lot of other industries, but not banks. he truly believed, and he says this in documents, he truly believed jpmorgan could save new york in the country from a greater tester fee after the panic of 1907. jpmorgan got together with people at the hotel manhattan at midnight. did not have the president or treasury secretary, told him later what they would do. of treasury money, they saved their friends. they decided th

obviously, weak in the investment banking space compared to goldman sachs.t's not their only core business. they are really big in the asset management business. it's been more stable and benefited from rising asset prices. that said, i don't see a lot of growth for them in the immediate horizon. they're going to be reporting on the 17th. this is a name where, in fact, options are relatively cheap compared to how much the stock has been moving around, which is kind of interesting. so i'm going to look to put on a trade that will capture that earnings. specifically looking out to june. the 28, 25 put spread. spend about 90 cents to put on that trade. not risking a great deal of money. take a look at what the market is doing. it's easy to imagine this could move $1 one way or another between now and june expiration. >> let's say the markets bounce. what happens to this trade? do you need to believe the markets will go lower? >> i think after the week we had and it's down in the last two weeks alone a new 52-week high. you have to be careful pressing some of th

at 7:30, goldman sachs due to roll out results.ectric, dupont, blackrock. united health. we also have economic data coming up at 8:30 eastern time. the government will be releasing the weekly jobless claims report. that's is your squawk planner. let's get over to andrew. >>> sap fell short of analysts estimates, the software company said its current quarter will be impact by volatile exchange rates. joining us now is bill mcdermott, the co-ceo of sap. good morning to you, bill. can you hear, bill? >> hi, andrew. happy anniversary, cnbc. >> thank you. >> can you hear me? >> i can hear you now. i can hear you now. >> how are you? >> i feel like a verizon commercial. >> let's talk aboutier earnings. and let's talk about the currency issue. it seemed to impact google last night. >> yes, i mean, we had a really good quarter. we lost five points of growth in currency. obviously if you look at the revenue line in the cloud, we grew the cloud by 38%. we grew software and software-related services by 9 and profit by 7. but as you rightfully

formally of goldman sachs. he thinks the germans are anyway of any qe.etween the ecb and qe? >> of course we were all t the ecb didtha not move yesterday. there have been discussions of certain consequences. it's more than that. it is euro area, difficult to assess what is the potential effect of such policy. especially in a situation where financial markets have fragmented geographically. issues of implementation. how qe would be of limited. what quarters. details which of have to be discussed. not just qe as we have seen for the u.k. and u.s.. move a version, which will be different given the nature of the european markets. especially financial fragmentation. there will be some work of preparation as well. >> you say it is difficult to assess, but i know you have been called the queen of numbers. you are an expert in short term economic forecasting. is inflation easy to work out? some seem to work -- look through the current weakness and say it is cyclical factors. is that your view? >> that is definitely not my view. i have seen that the ecb has produ

obviously, they're weakening in the investment banking space compared to goldman sachs. however, that's not their only core business. they are really big in the asset management business, which tends to be a little bit more stable and has really benefited from rising asset prices. you know, that said, i don't see a lot of growth for them in the immediate horizon. and what's also interesting, they're going to be reporting on the 17th. this is a nape where, in fact, options are relatively cheap compared to how much the stock has been moving around, which i think is kind of interesting. so i'm going to look to put on a trade that will capture that earnings specifically, i'm looking out to june, and i'm going to put on the 28.25 put spread. you can spend about 90 cents to put on that trade and not risking a great deal of money. and when you take a look at what the market's doing right now, it just seems like it's easy to imagine this thing could move $1 one way or the other. >> let's say the markets bounce next week, what happens to this trade? >> i actually -- >> do you nee

sachs and 2009.nd he mails himself some of the computer code, which he has been working on and goldman sachs sees this former employee and goldman sachs panic. instantly in a matter of hours and days, cause the fbi and the fbi instantly arrest him and a trial is held eventually in the sentence for this and in the end his conviction was reversed, but only after he spent a year in jail. so, i. there were three questions. we've just come through this financial crisis and we've had a lot to do. the only person who ends up in jail is the person who they won't put in jail. and i thought that's very strange. why? so what did he do? what was such a big deal that he deserves a better deal and people don't have any kind of criminal exposure. so the second thing was the prosecutors who are after them, they could get back on the street because it was so dangerous to have someone who had access to this because it could be used and it could be used for disrupting markets and if this code was in the wrong hands whe

haveould goldman sachs more than one?oblem, not yours. >> should they have more than one meeting each year? >> they have meetings every day. how do you think these things happen? our lead director is out talking to the major investors. i met with them in 2009 and 2010. they were frankly having all of these public relations issues. >> citigroup has had five ceos in the last six years. at some point we say we need to hear from the ceo, but also those overseeing the ceo. by the way, these annual meetings? i would like to see not just the ceo and the chairman, but the giving briefittees presentations. for ex absolutely. >> we need to take a break. we will continue this conversation after the commercial. >> we have an all-star panel. >> we are looking at you. if you missed any of our interviews today, you can watch them on amazon fire and apple tv. stay with us. ♪ with harvardk business school professor, bill george, and john stitches and ski a black stone is here as well. we're talking about activism in the financial industry

professor sachs, you were just in ukraine a week ago.ow desperately do these forces there need support? >> well, the situation is as dangerous as we just saw. and if putin either uses these proxies or steps over the eastern boundary of ukraine, i think the consequences are going to be unavoidably pretty devastating. but i think the first stop is going to be a complete economic war. that would be my guess. >> i want to get to the economic implications of this. governor richardson, on this question of more military aid, do you think the calls for that are correct? >> no, i think they should be on the table. i don't think we need to provoke russia. the situation is very dire. there's no question about it. these are proxies by the russian government, these militias. we know what russia's intent is. but i think what we need to do is continue with strong sanctions which we're contemplating, and secondly, there's going to be a foreign minister's meeting very soon in geneva. let's see what the russians do. my view is that there's some also polit

>> i just despise goldman sachs. is nice enough guy but i think he runs kind after crummy company. melissa: larry fink. >> i love larry. melissa: he is like your buddy. >> here is the problem with larry. melissa: okay. >> he runs around telling everybody he doesn't want to be treasury secretary and everybody knows he does. then he goes out and on his board, he appoints cheryl mills. you know who cheryl mills is? melissa: yeah. >> hillary clinton's top people, right? melissa: right. >> she knows nothing about finance. so he puts her on the board of the biggest money management firm in the country. melissa: okay. >> that is so blatantly political. i don't want to punch larry. i want to buy him a drink. i want to know what needle is sticking out of his arm appointing cheryl mills to his board. melissa: onion has jeff bezos on the list other than to laugh. scope of influence, public image, income and general physical appearance. own one said that, not me. >> our country, melissa, has terrible tendency to cut down the tal

that's what goldman sachs is probably lacking right now.epending how you want to look at it, it trades about the same as goldman sachs. but in the world we live in today, it's probably a better business model right now. >> than gold man. >> in this world today. >> why over goldman sachs? >> because gold, blue, whatever color. goldman brown. >> volatility has died down, why wouldn't you want to be in a goldman? >> right now. >> they're building the lever up to the economy not so good. >> next up, apple. >> let's get to cnbc's josh on this. josh. >> apple reports earnings next wednesday and there might be a big surprise for investors. tony, the analyst who covers apple estimates that apple has about 10 billion left in its current buy-back program. he thinks apple next week will add 30 billion to that program. apple stock could use a boost. it's been stuck in a trading range between about 525 and 550. peter of jeffreys agrees that apple should buy back more stock. sitting on nearly $160 billion cash pileup. telling me that is an obscene amount

obviously they're weaker compared to goldman sachs.igh a lot of growth for them in the immediate horizon. options are relatively cheap compared to how much the stock has been moving around. i'm going to look to put on a trade that will caption that earning. i'm just going to put on the 28.25. you can spend about 90 cents to put on that trade. you're not risking a great deal of money. when you take a look at what the market's doing now, it's easy to imagine this thing could move. >> what happens to this trade? do you need to believe that the market will go lower? >> when you look at what this stock has done in the last two weeks alone it was almost going to make a 52-week high. into that week, i closed them today. you don't like to press things on lows, and you could be doing that here. i think you could sigh 26 over the next month or two. the activity is really, really bad right now. i can see if from where i am. yes, there are a lot of deals on the calendar that are smaller. >> i just pointed out that the options are not that expensiv

goldmanved paulson and sachs.e said they regularly were too scared to go after the top dogs on wall street, the people and firms that it is charged by congress with regulating people --. lawyersbecause these working at the sec were concerned about what kinds of jobs they would get in the private sector after leaving the agency. does that ring true to you? fromhave heard that federal judges. i don't find in my experience that was the case. there are very talented attorneys to go to the sec to perform public service. there is a lifespan that you have the sec. at some point you have to leave. some may say that the corporate world is better because people and counselc and go those same corporations as to how to abide by the law. >> they can take those expertise and get paid handsomely by these corporations and teach them how to outsmart the system. goldman sachs has deeper pockets than the sec does. >> i don't think they are outsmarting the sec. i think they are well represented by professionals who understand how the

depending how you want to look at it, it trades about the same as goldman sachs. in the world we live in today, and it kills me to say this, it's probably a better business model right now. >> why did it kill you? >> because i'm -- >> he's a goldman veteran. >> because gold, blue, whatever color. goldman brown. >> if bond volatility has died down, volatility will pick up, why wouldn't you want to be in a goldman? >> fair. >> right now. we're talking about right at this moment. >> their ability to lever up to this economy, not so good. >>> next up, apple reports next week. let's get to cnbc's josh lipman on this. josh. >> apple reports earnings next wednesday and there might be a big surprise for investors. tony, the analyst who covers apple estimates that apple has about 10 billion left in its current buy-back program. he thinks apple next week will add 30 billion to that program. apple stock could use a boost. it's been stuck in a trading range for two months between 525 and 550. peter mystic of jeffries agrees that apple should buy back more stock. they sit on a

and netflix their use a goldman sachs? [laughter] >> they will probably laugh at me.but i was at the "wall street journal" in 1989. liz: charlie gasparino. i saw you fighting in belgrade earlier today. i heard you yelling. [laughter] >> it happens so much i forget. liz: the bell rings in 27 minutes. all major indices are down. you want to keep every penny of your retirement fund but you are not. there are hidden fees all over the place this start up the sheriff the of nottingham may not be too happy with those one dash with the results. you have to hear what the ceo says he is exposing dark secrets it is a fox business exclusive. a media company gets the big black guy last night they were spreading murder and mayhem but how did investors react? details when we come back. ♪ liz: today market sell-off does not sideline the new eight -- ipo a small businesses advertising company that could raise $100 million. word deutsch bank and credit suisse are working on the deal. nickel, we saw the market comeback but now starting to claw their way back. >> it is interesting. ligge

>> goldman sachs and compensation there. ceo lloyd blankfein has made in 20 2013, $19.9 million in total compensation, beating the $13.9 million he made in 2012. that particular compensation package includes $11.3 million in stock awards versus $5.3 million in stock in 2012. also news on goldman sachs, president and coo gary cohn, comp, $18 million in 2013 versus $12.5 million in 2012. we're talking about putting up numbers. goldman sachs as a company has had stock gains of 40% in 2012 and about another 40% in 2013. so obviously shareholders and the board rewarding the executives at goldman sachs. >> thanks so much. back to the conversation at hand. critical one for people listening and where we think this market is going to go. doc? >> a lot of money is being stripped away from the ipos. no doubt about that. none of us will deny it. wait until you see some of the other ipos that are coming, scott. we've had bill gurly on this show tell uses last year, mid ol last year, that the market was topping out. the private equity fir

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so five of you guys in this room have or are going to work for goldman sachs. >> very, very interestingdom, those are some scary smart kids. >> it blew my mind, first of all, they are all students right now. only a handful are graduating. but as students, it was always so competitive, when i was growing up in the business, to get a job and internship at a bank. i never had one before i went to wall street. these guys seem to be lining themselves up for all these internships at places like black rock, jpmorgan, hedge funds. a few students said they worked both internationally and here at home. >> but you know, it goes to the fact if high speed trading is going to be part of your bread and butter at a firm, you want the youngest, most nimble and best educated people to be in your firm. >> you are sending them out around the world. increasingly, they are less focused on what's happening here on the american market because of the way in which we are pricing at the moment and sending them abroad, to emerging markets and into other areas. if you look at how advertising is traded, it is increa

lou: we know about them but goldman sachs behaving this way?ancials are cheap i will not argue goldman sacks but they are not the expensive stock with the book group valued at one dash value basis. lou: i will repeat managing goldman sachs into negative territory with those results getting a positive is crazy. we have seen companies get hit when they disappointed and google with that market reaction it is silly. is the market going to settle? will we see real gross sort topline growth? limit to those 500 companies and asked to give us the rabil deal. >> you will see surprising earnings growth compared to what people expect with the weather snapback exceeding expectations. rethink u.s. could be up 10% europe and ukase specifically about 20%. we are bullish. investors need t to know it is not this new bride -- ace news ride it will be a windfall a tile and they need to insure the of volatility to get the profits at the end of the year. lou: listen to my financial reports on the sale of radio network for the biggest market news. stayed with us. th

do i need goldman/sachs to rally? i don't think so. if the rest of the banking industry, throw in the regionals to perform, that will lift the market with the financials and goldman can be a lagger for a while. >> steve suttmeier, where do you see the financials shaking out here? a place to go, technical upside coming, or no? >> no, i think they're fine. when i look at the financials, relative to the s&p, there's a double bottom there. it has not been invalidated. i will note that i have noticed that the broker dealers, specifically the xpd index, the amex does look vulnerable. kbw banks, they look fine. i would say with what we said earlier. >> josh word, the last word and we'll put a button on it. >> i want to go back to suttmeier very quickly. steven, a lot of your work has suggested the rally is broadening. you point to the all-world index and a global rally. can the u.s. pause europe and emerging markets take the torch and lead the global marks higher? or does the s&p have to be back in gear for these other places to keep working?

so and i even had a little toy sachs phone around 5 and i picked up the actual sachs phone around 10and i have been playing it since. >>reporter: says he was almost in tears when he found out he had been accepted. he does say he's not yet sure if he wants to be a professional sax player so will see where the road takes him. smart guy. another half hour of 7 news at 9:00 just moments away. assault vandalism what is to be place of peace and quiet effort to make bay area library safer. >> what is it like to spend your days and nights with nowhere to call home. this video from a go pro camera will show us. >> tired of lugging around the crunchy car seats. tonight the new light weighten ovation that fits into a backpack. another half hour of 7 news at 9:00 [ female announcer ] it balances you... it fills you with energy... and it gives you what you are looking for to live a more natural life. in a convenient two bar pack. this is nature valley. nature at its most delicious. wow! ♪ [ female announcer ] with 10 grams of protein and real fruit, they're right at home in the land that inspired

bank of america, morgan stanley, goldman sachs all due to report this week.t the moment most of the names on your screen moving slightly lower. stocks getting a boost from the biggest jump in retail sales, sales, he came out of your houses, he started shopping because sales did reflect that better than expected 1% in march lead by more than 3% surge in sales in auto parts. this is the latest on the economy. after the frigid winter. also warming up today. mergers and acquisitions. making high altitudes solar powered drones. financial terms not disclose, but facebook was in talks earlier this year. later did buy the drones. a blockbuster deal we have to tell you about, the financial services entertainments giant buying asset manager. how many of you over the years have helped? a good chunk of the deal. boosting the assets under management from nearly 570 billion to now $800 billion. at one point is today the which has gotten so beat up last week was up more than a full percentage point but when the market got easily spooked by what happened, the question now be

goldman sachs but a firm, precise number on a chance of a 10% correction. he said there is a 67% chance. i don't know how he gets that number. apart from that, he expects the market to close up a little bit. we could see a real correction between now and then. people have been waiting for that. saying this is the washing out we needed in the market. are we expecting to see another big selloff today? >> it is hard to say. pretty flat market right now. earningsews is alcoa's after the bell. it marks the start of the earnings season. earnings are expected to be flat. that leaves a low bar for companies to be. >> thank you so much. back in washington, the white house continues its push to reverse income inequality. the president will be signing to executive actions later today to increase transparency in federal contractors practices. so mattingly joins us. what will these executive actions actually do? iswhat you are seeing today something the president can control. federal contractors. he is putting new restrictions on how they can operate. this executive ord

>> i'm sorry a to see that goldman sachs is thinking about closing their dark pool, melissa. that is trading venue. you know what, trade is good. no matter where it is. whether anonymous or not anonymous or dark pool or electronic message board. whether on an exchange. those type of trades made the market more efficient since they have begun. look at spreads on large cap stock before dark pools and high frequency trading. it was 15 or 25 cents. it is penny or less. >> i think jonathan is half right. i don't think he gets whole notion what the markets have become since 2005 and 2007. >> more efficient, charlie. >> i agree with you on the, with the notion that you know, the electronic trading and high frequency trading has helped reduce commissions and spreads. that is good for liquidity in the market. here's the problem, when there were two exchange we didn't have "flash crashes." >> i predict they won't close the dark pool. >> we had real crashes, charlie. we had real crashes not two in one day. melissa: go ahead, jonathan. finish your point and we're done. >> melissa, to sug

up next, morgan stanley and goldman sachs. views happy to say, dick bove, vice president of equity research at rafferty capital, on the phone from florida. dick, thanks for joining us. you've been banging the drum for bank of america. you disappointed with what we've got. has it changed your view? >> basically if you take the litigation cost, which was 47 cents a share out of yesterday's report, the company reported 35 cents in operating earnings. i was estimating 32 cents. i wasn't disappointed by what they reported. what was disappointing was the nature of the report. in other words, like citigroup and jpmorgan, and i guess the biggest surprise to far in this bank reporting season, trading was extraordinarily strong, as they say, for bank of america, jpmorgan and citigroup. that was completely not expected. that suggests that both goldman sachs and morgan stanley may be able to beat the estimates that are out there for them when they report in a couple of hours. >> where does that put them in line with what we've placed in t

you do carry the recessive gene for tay-sachs. >> okay. and what is tay-sachs?y-sachs is a disease that's basically losing the ability to function cognitively and results in death by the age of about 4 years old. onset is about six months. >> wow. >> so if your partner has it and you were to have another child -- >> my kid could have it. >> yeah. >> how would i change that gene? >> we'll look at the hexasequence here and look at the particular mutation. here's the error. >> wow. >> literally that's the one letter that's wrong? >> yes. it's a screw-up. we're going to print out the correct copy. >> that's nuts. how would i get that into my body to fix that problem? >> there's viruses. there's hijacking your immune system. but currently the technology is not i think really good enough. we need to make ways that are much safer, that don't result in problems like your immune system going crazy -- >> shutting down? >> exactly. we don't want that. >> no. >> we're going to show you how we make the dna. all life comes from four chemicals. there's an a, c, there's a t, an

goldman sachs, morgan stanley.hese guys have worked very hard the past couple of years to get the drama behind them. can they with this quarter's numbers? >> if you look at the earning estimates, they have been coming down and down getting closer to the estimates. the trend has been treated so that smith coming to earnings the capital market areas on a year-over-year basis are tough. we have these execution facilities that came in. continued record try pressure on the market activities of the big banks. melissa: if you in one piece of advice to give investors would like to get more entrenched in financials, what would it be writes now? >> stick to domestic, those who can grow loans because ultimately that will drive earnings. melissa: we love you, fred. tell them we said hi. >> i will do that. liz: liking the regionals. put the fox fans on foxbusiness.com/liz claman. the closing bell in 41 minutes. we have breaking news, exclusives on the fight over herbalife. billionaire investor fight to turn up the heat even fur

crisis gets thrown in jail is the only person goldman sachs wants thrown in jail. so i started to poke around that story and went looking for someone to explain high-frequency trading for me, because it was this new term of art. that led me to the main subject of the book. >> explain -- now i'm going to ask you to do the thing that you do in the book, and what brad has to go around the country doing to everyone else, which is to explain. explain what high-frequency trading is. and why -- what is wrong with it, if there is something wrong with it. >> so it is a term of art, it's a catchall for all sorts of things. but i guess broadly speaking, it's trading at very rapid speeds, using computers, in the newly automated financial market place. there's nothing wrong with that, in and of itself. it's -- the problem is, as the market went into computers and went off the floor of the new york stock exchange, built into it was this scalping activity. and the scalping activity is, it is true. it's a subset of all high-frequency trading, was as brad katsiama finds out, it's a

of goldman sachs. when he was brought in. and i think it's at least in the background of a lot of the decisions that they've made to either non-prosecute companies, to seek fines instead of criminal prosecutions, dodd-frank was the major act that was designed to reform wall street. it was significantly watered down at the start. instead of going through with sweeping reforms like f.d.r. did after the depression where they could force all derivatives to be traded on open exchanges the way stocks are. they didn't do that. they allowed for this piece mill approach that was complicated. and i think that was influenced by the money. these people don't want to lose access to these contributions. >> you have a new job and what is it? >> i work for first look media which is the company that's founded by the ebay billionaire. you might have heard that he's already hired folks who have created a site intercept focused on national security issues. i'm going to have another mike crow site that is going to be focused on more domestic issu

last book was about goldman sachs and people have a lot of passion about goldman sachs, but this is another realm altogether. and duke alum william d. cohan looks at the duke atrosse scandal tonight 8:00 on c-span's "q&a." >> next, supreme court justice sonia sotomayor talking about from prosecutor to district and appellate judge to being on the supreme court. latina justice and the third woman to serve on the high court. georgetown university hosted event. it's about an hour and a half. >> thank you. good afternoon, everyone. thank you, president, for your extremely kind remarks. ats always great to be back georgetown and to have a chance to see you and my many colleagues. many here this afternoon stirs of memory.cords it's a very personal experience. thinking back some two decades ago when the bernstein lecture was launched with vice president gore and continued with so many luminaries. i must also mention another great mentor of mother-in-law, -- mentor of mine,daniel patric. it's been great to be connected this georgetown community. i've enjoyed coming back here, enjoyed being on the bo

my last book was about goldman sachs and people have a lot of passion about that.s is in another realm. >> durham, north carolina. is where? >> in the triangle. in the center of the state near raleigh and chapel hill. it is called the triangle because triangle park is there. very famous biotech and technology and research center and anchored by north carolina state, duke, and a unc. hugef course, tehre are sports rivalry especially in basketball. >> how many students are there at the school? >> duke has about 6000 undergraduates. about 1500 per class. >> in the subtitle of your book, the duke lacrosse scandal and the power of the elite and the corruption of our great universities. why did you expand it beyond the scandal itself? universities." >> because i was amazed at a couple of things as i did my research into this. number one, duke, an institution is not that much different than a wall street bank that i have written three other books about. it is a very secretive institution. they have their myths and ways of doing business. they have a lot of power in the st