[Paula Newton:] We can't give credit to the real Silicon Valley, but there they are, ringing the closing bell, Silicon Valley, a new show on HBO. Of course we are part of the same family here at Time Warner and what a day it was on the Dow. It is on a roll. Yes, I'm surprised, too, as it pushes higher above the 18,000 mark. It's Tuesday, the 19th of April.
[Newton:] Tonight, if you can make it here OK, I won't sing it for you; you can make it to the White House. Voters go to the polls in old New York. And there's a slump, at Goldman Sachs as earnings fall 50%. And Yahoo! is hoping for a purple patch. Its Q1 results due out any minute now. I'm Paula Newton and this is "Quest Means Business." Tonight, it's up to you, New York. Voters in the empire state are casting their ballots in the Republican and Democratic primary recalls. Now, the front-runners Donald Trump and Hillary Clinton, desperately need wins after what are a string of losses. Now both Clinton and Sanders have strong ties to the state, of course. Clinton represented New York in the U.S. Senate, and Bernie Sanders grew up right here in Brooklyn. Clinton is hoping to win here that her win here will end Sanders chances to capture that nomination. Now on the Republican side, New York native, Donald trump leads polls by double digits but his campaign is in the middle of a shake-up and controversial comments on abortion have alienated some voters. Now shortly after casting his own ballot, Donald Trump played down his campaign's recent stumbles.
[Donald Trump, Republican Party Presidential Candidate:] I think the campaign's been doing well. Many, many senators, governors, they're all gone. We have tremendous support and, you know, having Ben Carson and having Chris Christie and so many others supporting me, senator sessions. We have amazing support. But I'm really honored and putting in that vote today was really something terrific. Have a good time. Thank you.
[Newton:] Now think about it. Just one month ago the front-runners enjoyed towering leads. Then the Sanders surge bit into Clinton's lead. Sanders has won 7 of the last 8 contests. This is where the Democratic delegate race now stands. As you can see there a little skyline of New York but New York's rules favor Clinton. And this is why only registered democrats can vote in that primary. And that shuts out the independent voters Sanders has relied on in the past. On the Republican side, Ted Cruz delegate count has crept up slowly over the last month, it's unlikely any Republican candidate will pick enough delegates though to avoid a contested convention. And the same organizational strengths that powered Ted Cruz to recent wins will help the Texas senator at a contested convention come July. Mark Preston is executive editor for CNN politics, he joins me now live from Washington. Mark, again, looking at this race, we are in New York, obviously, an all-important race on two fronts. And New York isn't used to this. Usually by this time these things are sewn up.
[Mark Preston, Cnn Politics Executive Editor:] They are sewn up, they are settled and both parties' nominees or presumed nominees are looking towards the November election. But as we're seeing now on the Democratic side as you said Bernie Sanders has surged on. But he still has a steep hill to climb. Right now he would need to win 73% of the remaining delegates in order to secure the Democratic nomination.
[Preseton:] Now, there is some funny math involved in that. In fact there is a bloc of voters here in the U.S. that tend to be U.S. politicians, governors, senators, U.S. House of Representative members who are supporting Hillary Clinton. They are not bound to Hillary Clinton however. And Bernie Sanders is hoping a win in New York tonight, Paula, could help build momentum for him in these closing months. As you said, though, Donald Trump too another native son. A big win tonight could give him the momentum heading into the closing months of this election, as well, as he's trying to get to 1,237 and avoid a contested convention in Cleveland, Ohio.
[Newton:] Yes, and both races still very contested to use the word as we keep talking about these conventions but they're in completely different places. Mark, if we take Hillary Clinton in the first instance, she even used language like this today saying, look, we hope we can do it here in New York because that really will propel her forward. Is the math in her favor? Even if the momentum isn't?
[Preston:] Momentum is not. Math absolutely is. And at the end of the day, the math will always win out. The problems for Hillary Clinton right now is that the fact that she is not able to win over key constituencies which include white voters as well as young voters, these are what are fueling Bernie Sanders right now is certainly troublesome for Hillary Clinton as she looks towards the November general election. Bottom line is that Democratic race is not over. But it's certainly given Bernie Sanders enough oxygen to try to push a more liberal message on Hillary Clinton that she will have to moderate as she tries to appeal to a wider swath of general election voters when we get into the November general election.
[Newton:] And we just were looking at the poll numbers there and of course Clinton's in the lead but just to remind everybody the delegates are assigned proportionally so Bernie Sanders is still going to get some. If we move on to the Republican race, you know Mark, it's been so interesting to watch Trump here in his home state, of course, and yet, there is quite a battle going on within the Republican party. They have called it everything from a civil war to a war that's really going to end the lead to the end of the Republican party. How much has this race already moved on from New York and really moved on to the convention floor?
[Preston:] Well, you know, in many ways if you look where Ted Cruz is you know today, he is in Philadelphia. Now, the State of Pennsylvania is voting next Tuesday, not tonight. Seven days from now. He's already in Pennsylvania. Bernie Sanders himself on the other side, of course, is in Pennsylvania. We have seen John Kasich who's clinging on to try to win the Republican nomination was in Pennsylvania and Maryland. So it just goes to show you that this game is not just about New York. But it's about trying to gate little momentum out of New York going into the next states. But Donald Trump who has certainly done very well as he noted earlier when you ran that sound clip he's been able to bring over very conservative members and the likes of Chris Christie who is considered a moderate here amongst Republicans. Still needs a big win here in New York. 95 delegates on the line. Donald Trump in order to secure the nomination, Paula, needs to win 62% of the remaining delegates. However, a big win tonight could help him next week where we're going to see five other states where like-minded Republicans live specifically mid-Atlantic region all the way up the east coast up to the states of Connecticut and Rhode Island. So a big, you know, a lot certainly on the line tonight for Donald Trump.
[Newton:] Yes, Our Mark Preston there setting up this race perfectly yet again. Mark, we'll let you get back. I know results will be coming in in a few hours and we'll continue to follow that story here on CNN. Now my next guest knows what it's like to campaign for president. Steve Forbes ran in the Republican nomination in 1996 and 2000. He's the chairman and editor in chief of "Forbes Media" and he joins me now here in New York. It is quite a day in this state. I want to start with some comments that you've already made about the Republican Party and this campaign. You say it's been absolutely pathetic. Why?
[Steve Forbes, Chairman & Editor In Chief, Forbes Media:] Because until very recently most of the candidates did not lead with a kind of an optimistic pro-growth agenda to get the American economy back on track. Quite a contrast to what Ronald Reagan taught us back in 1980 when he led with a radical tax cut program. People were skeptical of it but he won the election, got the mandate and enacted most of it and helped the economy, American economy, back then get real growth again. So they did not Donald Trump I don't agree with him on a lot of positions but he did lead with a couple of issues and made those front and center as the focus of debate and the other candidates did not respond in kind. So they left the field to him.
[Newton:] Yes, in fact, you say he's led a very shrewd campaign. Whether or not you agree exactly with what he's saying. By the way are you ready to endorse him or not? Are you endorsing anybody right now you haven't so far.
[Forbes:] No, no I still feel like the dating game. Still waiting.
[Newton:] Still on the sidelines. OK just waiting for that date. You know, what you have said about Trump, though, again, that shrewd campaign. And yet, we want do get to the math about this. You know, Donald Trump may still not become the nominee because, again, on that convention floor, it may be taken away from him because he still doesn't have the threshold of delegates need. How do you feel about that? I mean, in terms of the way the Republican Party has run this.
[Forbes:] Well, right now, normally, after his victories earlier in the process, he would have the field cleared but even though he has one third of the Republican Party or voters in these primaries firmly in his corner, stick with him through thick and thin, he's also got one third who are really against him. So he's got to battle now which previously nominees haven't had to do to get the one third still fluid. He'll get most of that in the state of New York but he's going to have to do it in the remaining primaries. Pennsylvania will be the focus a week from now but after that, a key primary is going to be Indiana where if you do well you're going to get all of those states delegates. So he's got do some speeches on some topics instead of just tossing off a comment, do what he did a few weeks ago at APAC when he talked about Israel and the Middle East and what we should do. He's got to do more of that on areas on foreign policies, taxation, regulation and education and the like to show people he's ready to step up his game.
[Newton:] You know, in terms of what you've counseled him to do, you said tone it down but you're also looking at a lot of the policy things that have been floating around. What advice would you give him right now and would you put money on him becoming the nominee if he takes it?
[Forbes:] He has to be favored because if he does well in some of these remaining primaries, my home state of New Jersey for example is winner take all. So if he wins the plurality of votes there, he'll get 51 delegates doesn't have to share them anybody. And the key thing is he's got his core voters so he doesn't have to worry about them. So he doesn't have to do the one liners anymore even though they're very funny and we all will watch it whether we support him or not. But he's got to step up his game and show people that he's thought through these issues, that he's putting together a team of advisers and that he can put together a government. Reassure those who are either slightly against him or maybe slightly leaning towards him. You know, emotion does not count casting that ballot. What he has to do is get people who are not on his side and give them a comfort level enough to say I'll take a chance on this guy.
[Newton:] OK. Answer my question, though. Would you put money on him becoming the nominee at this point?
[Forbes:] If I knew, I would be in Las Vegas making bets to get on my rich list.
[Newton:] Well that's an interesting way to dodge the question. I mean look -
[Forbes:] Well, it's not a dodge. It is not a he should win. It's for him to lose. So you have to say, yes. He is the favorite right now. But Cruz is starting to improve his game. He's coming out more on the flat tax and some other issues. He knows that he's got to be messenger, I mean, in terms of having a message, not just being a messenger. To ramp up his game I think he's doing in states like Indiana but right now, you have to give the slight edge to Donald Trump.
[Newton:] And in giving that edge to Donald Trump, I mean what do you think he's been able to tap into? You ran as a successful business person, an outsider to Washington. Do you think that that is really what the Trump supporters want here? They just are done with politicians.
[Forbes:] They're done with politicians. We've had seven years of economic stagnation which we haven't had experienced at all since the 1930s. But also, Donald Trump was well-known to the American people before he entered politics. He did not have to introduce himself which most candidates even though they may be somewhat national figures it's not a parliamentary system we have here. Most of the candidates are fairly unknown until they begin a national campaign. But being on "The Apprentice" T.V. show and the like Donald Trump was already known. He was seen as an authoritative figure, as they like to say he was the only one who could fire people who didn't work for him. But he was looked up to as an authority figure so he had a following even before the campaign so when the criticism came, people felt well I already know this guy and so the normal rules of politics didn't apply.
[Newton:] Didn't apply to Mr. Trump. A very quick question, they're wrapping me here. If he does not win the nomination, would you counsel him to go for a third party run? An independent running for the White House?
[Forbes:] No. For one thing he couldn't get on all the state ballots. We have 50 different rules for 50 different states. If he wanted to do that he'd have to be working now to get on the ballots of states like Texas. It's a cumbersome process you can't do it at the last minute.
[Newton:] Gotcha. OK. Mr. Forbes, please come back an interesting conversation with you.
[Forbes:] Look forward to it.
[Newton:] We'll continue to watch interesting results come in this evening. Appreciate it.
[Forbes:] Thank you. Thank you, Paula.
[Newton:] Now Republican candidates need to appeal to evangelical voters. We've been saying that for some time. Democrats need though the support of labor unions after voting in New York, Hillary Clinton travelled to Washington to build up her credentials with those all-important union workers.
[Hillary Clinton: U.s. Democratic Presidential Candidate:] The Republican front-runner for President actually says wages are too high in America. Now, I have said before I do not know who he's talking to. Because Americans deserve a raise. Yet, Republicans and governors [applause] and their legislators across the country are waging a relentless assault on workers' rights.
[Newton:] Joining me now, Philip Levine, is the Mayor of Miami Beach. He has come though to New York and the weather is cooperating. We've had a good welcome for you here. He's campaigning for Hillary Clinton. Welcome, appreciate your time here.
[Philip Levine, Mayor Miami Beach:] I think I brought the great weather here today.
[Newton:] You can't take credit for everything. Spring in New York is usually like that. In terms of being out there in the trenches campaigning for Hillary Clinton, there is a huge enthusiasm gap that we have been watching transpire here. What do you do to close that gap, especially even if Ms. Clinton does wrap it up tonight?
[Levine:] I agree with you Paula. The enthusiasm gap is incredible. I mean Secretary Clinton just has garnered so many more American voters than Bernie Sanders. I mean, the fact she has 2.4 million more Americans have voted for her than Senator Sanders clearly is an enthusiasm gap and I don't know how Senator Sanders is going to be able to close that gap. You know, it's funny when I hear about the math coming out, you know, and talking about various states that Senator Sanders has won and we give him credit, every state's important. Every vote is important. But Secretary Clinton has she's won Florida, Ohio, Texas, Nevada. You know? It goes on and on and on, Louisiana, Georgia, he wrote off the entire south saying it doesn't represent the Democrat Party. So clearly he has an enthusiasm gap Senator Sanders, but I hope that you know obviously when Secretary Clinton gets this nomination his people will, of course, support her going for the general election.
[Newton:] It was an interesting way to turn the tables on me but I'm not going to let you off the hook with that. I mean look, she's not getting crowds of 30,000 people the way Bernie Sanders does and a lot of the votes that she got were months ago. When people now, the national polls as you know, you just saw them like I did, show a very tight race between Sanders and Secretary Clinton. Even if Secretary Clinton locks up the nomination, don't you want Bernie's voters out there on the streets for the Democrats for that national election? Some of them might stay home.
[Levine:] 100%. And I think we are going to get those people to support. Just think about it. And I listened to Steve Forbes and I have all the respect for him and his run for presidency. And he's very similar to Donald Trump who will probably get the nomination. They both represent inherited wealth. And I don't believe We have Donald Trump out there who wants to build a wall, whose approval ratings I think with women or disapprovals are something like 70 something percent but at least he's doing better with women than he's doing with African-Americans or Hispanics. I think we're going to find that the Democratic Party is going to come together because they know that Secretary Clinton has had 25, 30, 35 years in supporting these people and making sure that they have better wages. You listen to her in Washington, she wants to rebuild the infrastructure. That's so important. That creates jobs, investing in our country today is what it's about. And I think we are going to see all of the Democratic Party come together when they know what the choice is going to be which will be Secretary Clinton.
[Newton:] OK. Mayor Levine, though you still need those Democrats to come out and vote if she does become the nominee and I've spoken to Democratic voters in the city and they say they can't help that feeling like they're watching an episode of "House of Cards" with two people conniving to get back into the White House. How do you actually put her front and center to really be that earnest candidate that everybody wants to back?
[Levine:] Well you know what I think she is, and I think it's all about the issues. And I think Secretary Clinton the people know Paula. The one thing that they know about Secretary Clinton is she's tough, she's resilient and she'll get the job done. And that's what's most important to Americans today. They're so sick of all these politicians that literally go into office and they have no ability to get things done. Secretary Clinton has a history of getting things done. And remember something, we are interviewing right now for the CEO of the United States of America and when you look at the field out there, she's the right one because she'll show up every day and she'll move the needle and that's the most important thing and people trust that she'll do that.
[Newton:] Mayor Levine, can't thank you enough. I think the weather is going to hold throughout the evening as we look at results and we look forward to watching this campaign with you. Appreciate it.
[Levine:] Thank you so much Paula.
[Newton:] Thanks. Now, we just have some breaking news into CNN. Intel says it will cut some 12,000 jobs around the world. That's 11% of the chipmaker's workforce. It's part of the company's restructuring to focus on cloud computing and what it calls the internet of things. It has been a successful strategy thus far. We will continue to keep to an eye on that but elsewhere on Wall Street, a rise in oil prices pushed stocks higher while disappointing corporate earnings pushed them back down again. I mean that was a tidy increase though. Netflix shares ended the day down about 13% and IBM off almost 6%. Now the Dow managed to end the session as we were saying above 18,000 for the second day in a row and it has seen a stunning recovery since February when it fell below 16,000. I mean hard to believe that was just a few weeks ago. Joining me now from the floor of the Exchange, Ben Willis, the senior trader at Princeton Securities. I mean Ben, I got to tell you, I don't see the fundamentals propelling this market at this point. Are you guys just crazy with spring here? I mean what is going on what's fueling this market?
[Ben Willis, Senior Trader, Princeton Securities:] These are not fundamentals. The best way to take a look at this market is risk off. The markets have traded on a risk off mentality since the lows you mentioned in February, meaning short covering.
[Willis:] We've had record short interest in the marketplace and what we continue to see is a sector move of short covering and whether or not that was from the oil which really started this direction meaning the small oil stocks that have been under pressure and fears that they were going into bankruptcy, we saw in February a move to short cover. That's exactly what we saw happen in the oil markets today. There was a huge expectation of a trade on the short side expecting oil to fall below $35 a barrel after Doha. When it did not happen that risk off trade started to happen and you saw a squeeze in the oil patch. The rest of the market if you take a look at some of the high short interest stocks those are the stocks that have been performing to the upside. So that's not investors going to work. Those are traders taking risk off if you will. So that being said, it's been a sector by sector risk off. That is a bullish indicator but it's but the numbers you're seeing are not based on a bullish sentiment, if you will it's based on fear and covering that fear.
[Newton:] And point taken. It's important that we really highlight and are transparent about the technical moves in the market but if I hear you correctly does that mean we are going to pay for this a few weeks down the road? Because even you know banks like Citi have come out and said they don't like the fundamentals going forward.
[Willis:] Well very interesting today, Merrill Lynch Bank of America came out and said for the 12th consecutive week they have seen their smart money poll selling stocks. Just to be clear, I am bullish on the United States stock market. This market is being moved from the fundamental side if you will because of the Central Bank intervention. That's not something that investor's trade on fundamentals. They have been forced into indecision. Janet Yellen and crew could not make a decision so the American investor are sitting on trillions of dollars not investing in the marketplace. So what I'm saying again is the move to the upside that you're seeing in some of the indices is based on traders saying there's too much risk. They need to take off, they've already sold those stocks short. In other words, sell high, buy low. The buyer and you're seeing that right now it's not an anticipation of buying low and being able to sell them higher. That money is sitting on the sidelines but, again, that is a bullish indicator not a bearish indicator.
[Newton:] Well we'll see going forward, especially when, again, we get more indication from the Fed Reserve as the next weeks and their meetings continue. Ben thanks so much, always appreciate the update.
[Willis:] Thank you.
[Newton:] And some more numbers just in to CNN. It is a busy earnings season. Yahoo! Has just reported first quarter earnings and they beat slightly on revenue but were largely in line with Wall Street expectations. Now the company's stock is up slightly in after hours' trading. It comes as Yahoo! Is examining bids from potential buyers and we'll have a full breakdown and analysis later in this hour. Now, in a moment, IMF Chief Christine Lagarde warns the possibility of a "brexit" is already damaging the U.S. economy.