look at a regional, like hban, huntington bank shares, probably the next regional to make a big move higher. >> sweet. >> matt, what have you got? >> jci. i'm interested in every one of these industrials. alex is live. let's get on, figure out if there is a story here. want earnings, not just on trump. >> we have mario gabelli tomorrow. looking forward to that. by the way this means hurry up, hry up. let's g next show starting. speaking of, "power lunch" starts now. >> i thought that was -- >> scott, that's just how i talk normally anyway. it's fair enough. i'm brian sullivan. we've got a parade of high-powered ceos topping your menu today. first up, more than band-aids and baby shampoo. in a rare and exclusive interview with ceo of dow component johnson & johnson. then we're headed to the detroit auto show. you will hear from what might

be, might one of donald trump's next tweet targets, ceo of honda motors will join us. as a huge part of the nation digs out from a major storm, we're talking snowmobiles. ceo of polaris. bundle up. "power lunch" starts right now. welcome, everybody, to power lunch. happy monday. i'm melissa lee. dow taking a bit of a breather after coming so close to that 20,000 mark late last week. nasdaq is the big market story at this hour as the index continues to hit record highs. apple is hitting a fresh two-year high as it celebrates the ten-year anniversary of the i-phone and strength in the chip stocks with nvidia and applied materials solidly in the green. i'm tyler mathisen. welcome to "power lunch." here is what else is happening at this hour. hundreds of people expected to have to evacuate their homes as

one of the worst flooding disasters in a decade hits parts of california and nevada. they're nahappy in snow country but lots of serious weather out there. u.s. war ship firing warning shot notice strait of hormuz after iranian vessels came within 100 yards of an american destroyer. thousands of london tube workers walking off the job as part of a union-led strike, up to 4.5 million commuters are impacted. there you see the lines and the traffic jam. bus twoi hours, folks, on "power lunch." it's been a very busy day at trump tower. trump wrapping up a meeting with alibaba chair jack ma a short time ago. let's get to john harwood with the latest on that and news, john, reported by nbc a short time ago that the president's son-in-law, jared kushner will

be taking a senior adviser role in the trump white house. john? >> exactly right, tyler. the president-elect is eager to get beyond the story that dominated last week, which was the russian hack of democratic campaign organizations and the propaganda campaign that the u.s. intelligence officials say they launched during the campaign. donald trump would like to talk about the economy. he was out tweeting this morning about plans by fiat-chrysler, to add jobs in the united states. long standing plans, nevertheless the president-elect sought to associate himself with them. and he did the same thing when jack ma came to trump tower. he has been talking for some time about trying to help american small businesses sell their goods on the alibaba platform. and they discussed that today. and here is how the president-elect and jack ma described the meeting. >> we had a great meeting. it's jobs. you just saw what happened with fiat where they're going to

build a massive plant in the united states with michigan and we're very happy. and jack and i are going to do some great thing. >> small business. focus on small business. >> thank you. >> thank you. >> now the other bit of news reported by peter alexander from nbc is that jared kushner will attack a job in the white house as a senior adviser. this is extraordinary. it will present an entire new set of conflicts to go with the potential business conflicts that surround the president-elect and his children with their businesses because jared kushner's own family real estate company but he is now on track. he was probably the single-most important person in the trump campaign in its final stages. and he is now said to be the most paragraphful relative of a sitting president, i believe, since bobby kennedy with jack kennedy during the 1960s. i can't think since then of any counterpart that is comparable to jared kushner which is why

new york magazine put him on the cover saying "president-in-law." very interesting to watch. back to the markets with the dow moving lower as the nasdaq moves a little higher. new record high, in fact, today. next ges guest has $1.7 trillion in assets. david liebowitz for jp morgan. always good to see you. thanks for coming in. >> thanks for having me. >> earnings will be the key driver, you say, in 2017. what are you looking for in terms of earnings growth overall? and how likely do you think this is going to be a turnaround year for profits? >> our expectation is that a lot of the headwinds to profit growth over the next couple of years, namely the dollar and energy, are largely now behind us. there is a little bit of risk of dollar strength and that hurting the earnings of big multinational corporations. our view is that any strength in the dollar will be much more

manageable than it was in 2015. so probably more to the tune of 3% to 5% as opposed to 15% like we saw a couple of years ago. if things play out in that way and we get a little stronger growth on the back of more profiscal policies out of washington, our expectations is that it can grow 3% to 5% for 2017 as a whole. think about what that means in terms of returns -- before we get to multiple expansion, which to me has a lot to do with animal spirits, you're looking at mid to high. >> you take the earnings growth, add the dividend yield on that, get mid to high single digits. >> exactly. >> if you add a little animal spirits into this, where does that take you? >> it could take us higher. i think a lot has been priced into the market already. we've moved pretty far, pretty quickly since the election. we've seen some consolidation over the past couple of weeks. i think what we're seeing, frankly, is the stock market pausing, taking a breath, evaluating what policies in

washington may look like going forward and figuring out its next move. there's still a lot of uncertainty out there. i feel like people are always talking about uncertainty. there is a lot of uncertainty. we're focused on the fundamentals. anything we get from animal spirits would really be icing on the cake. >> animals in italy, david. it's kind of a quiet story getting lost in this dow 20k hoopla. y titalian dow, ftse is up, nea every class except for gold is higher. where is there any value left? >> the one place that we're still seeing value is emerging markets. what i would say is that while over the next 12 months given our expectation for dollar strength we think u.s.-based investors perhaps should focus more on the domestic opportunities in their portfolios. for medium to longer term we really still like international investment. europe still looks attractive. in terms of where there's value left to us it's really emerging

markets. there is some risk there, the risk that trade policy out of washington turns more nationalist, turns more protectionist over the next couple of years. but there's also a risk that stronger growth in the u.s. spills over into emerging markets and actually helps the recovery, which has been under way in em, was under way in em for the better part of 2016. you know, the emerging markets story was getting better. things were looking great. if you had talked to me on november 7th i would say we like em. even though we're a bit more cautious with the way the election has gone we think there's opportunity there. after five years of pretty significant underperformance, fundamentals feel like they're beginning to turn. there are risks from trade. i think there's a story evolving there. >> you're walking tyler through your expectations for the year of espn. what's the base scenario? you made it feel like animal spirits are factored in and there could be a pull back in the market before you get to that 3% to 5% return if those

animal spirits don't have anything else to build on. >> i think that's a very fair point. what's important to remember is that the u.s. economy was gaining momentum before the election took place. the upside move we've seen in marks has really just been on the back of an improvement in sentiment. frankly, i wouldn't be surprised to see a little bit of a pullback here. some consolidation, a bit of repricing wouldn't necessarily be the worst thing in the world. when we look at the economy, we think that 2% real growth is very achievable. we think we'll get a little more inflation on top of that in 2017 due to both wages and more proactive fiscal policy. to us, that means there's an upside to growth, upside risk to growth in current levels. can markets pull back before we see them move another step higher? absolutely. when you look at the earnings picture, which in the long run should drive stock prices. we're seeing things there turn and the outlook is looking very solid. >> david lebovitz of jp morgan.

>> donald trump in a tweet saying it is finally happening, fiat chrysler just announced plans to invest $1 billion in michigan and ohio plants adding 2,000 jobs, mr. trump's tweet just one piece of news. let get to the rest of it with phil lebeau live at the detroit international auto show with more. phil? >> brian, that tweet is dominating what a lot of people are talking about here on the show floor. they're talking about donald trump and what he might do to the future of the auto industry in terms of trade policy, in terms of corporate tax policy, how things might change. sheer the expansion that got a lot of attention early this morning. jeep investing $1 billion, announcing it's going to invest $1 billion as it expands the jeep line, adding 2,000 jobs in michigan and ohio. it will be building a jeep pickup. many had been expecting that to ultimately be announced, as well as bringing back the wagoneer and the grand wagoneer.

as we speak this is a live picture of the ceo of fiat chrysler, holding a round table with reporters in cobalt hall. he said look, this country has been good with us. it's a smart thing to do to invest here. he was asked by a reporter from mexico any chance of further investment down there? he said it would be foolish for me to commit dollars down there, given the uncertainty of what's happening with the trade policy and president-elect trump's policies. also, take a look at shares, fiat-chrysler. one thing to keep in mind, this expansion for jeep has been planned for some time. you will hear people say, look, they were planning to expand. they kind of beat trump to the punch. they wanted to get themselves off the target list. perhaps. but i can tell you this, guys. every automaker that we have talked to here has been talking about their plans for production and job growth in the united states. certainly a change from what we've seen in the past. >> let's be clear, phil.

fiat chrysler had indicated plans to invest $9.6 billion as early as the 2009 bankruptcy filing in united states. >> right. >> this has long been in the works. >> correct. what is slightly different here, melissa -- you know how those plans work when companies often come out of bankruptcy they'll say we're going to invest $10 billion in the next ten years. it's hard to parse out what dollars go to what project. with this project it's explicitly for the expansion of the jeep product line and for the updating of a couple of plants, the one here in the detroit area as well as the one down in toledo. those were plans that most expected to ultimately happen. now they've been formalized with this announcement. >> good timing on that part. phil, thank you. phil lebeau. >> you bet. >> thanks for joining us from the detroit auto show. could it be the nail in the coffin for the malls? parade of high-powered ceos

continues, outdoor fun company polaris. first, ceo of johnson & johnson. that, straight ahead. isneny wdot ne kthiny all ings th a ita. . . ahaon tythust cuomonhi. tdmee.

wdot ne kthiny all ings twe're opening more xfinityt stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. goldman sachs no longer a fan of coke or tide detergent. goldman cutting its rating for coca cola from a sell to a neutral, saying earnings results should come in below expectations in the coming year.

they also cut p & g to sell, worried about december quarter sales. down under 1% each. melissa? taking place in san francisco, live there with the ceo of johnson & johnson for an exclusive interview, meg. >> alex, thanks for joining us. what do you think was driving that and what will continue that growth in 2017? >> meg, look, we're really pleased with the performance overall but far from satisfied. the underlying driver is about execution and delivering on our commitments. look over the past five years, 15 brand new pharmaceutical products that have been great for patients, driver in our business. put a lot of time and energy in our medical device business. it's performing and consumer business has gone through a

complete turnaround. we're very proud of that. i'm even more excited about the plans that we have in place over the next five years. >> we were talking earlier about this idea that the tech industry ceos have met with president-elect donald trump. we haven't had that same sit down with pharma ceos. if he did, what would would you tell him? >> that's a great question. we have been talking a lot with the administration around him. frankly, i think it's great that so many people are spending time talking about health care. it's very personal. second it's 18% of our economy. and the kind of things that we're talking about is how can we take what i believe is one of the very best health care systems in the world and how can we make it even better? how can we make changes, recognizing the challenges, economic pressures, regulatory pressures but keep essential elements like innovation through better integration? how can we do it through more value-based pricing and put some of those things better so we

don't lose focus on the patient and outcomes but at the same time recognize the realities that health care has continued to evolve as part of our overall economy? >> m & a, cancer company getting acquired this morning. you have a lot of cash. people have talked about a potential tax holiday. what would you do with that money? >> what we're most encouraged about, regardless of which particular approach is decide decided upon is to help us be more global. making sure we can best access the capital we have around the world and put that to use by developing new innovations and investing here, let alone in other areas, that's the real benefit going forward. >> how should we think about you in terms of being a dealmaker this year? >> we're always a dealmaker. take a look at us historically over 20, 10, 5 years, we can do

this internally but conferences like this where we reach out and partner, ultimately finding the best approaches and then, obviously, apply our clinical development, regulatory skills, our great sales and marketing capabilities and we think that that's what makes a big difference for us. >> you hear the president-elect say the only thing he said so far about the drug industry is that he doesn't like what's happened with your pricing, how do you respond to that? do you feel you need to change your approach on pricing or does something else need to change? what is the effect of that? >> pricing is a big issue. value is a big issue. not only across the pharmaceutical industry but across all of health care. part of it is this demand. with an aging population, increasing middle class, more people getting access, it's putting a lot of pressure on the system. we try to, first of all, make sure we're responsible players in all of this. that starts with making sure we differentiate our drugs, that we fully demonstrate the profile they bring to patients but also the value that they bring. make sure we have the right

support programs, price them responsibly. but it will take all the members of health care working together to get this right. >> mel, you have a question? >> yes. you talk about always being a dealmaker. has that effort moved up the value chain especially as you're facing looming potential competition? there's this speculation in the analyst community that a deal should be made in order to plug the immediate drop in sales that you could face with remicade. does that push you further in the m & a pool? >> as i said earlier, m & a we look at as a very important sourcing strategy for us every year. while we certainly understand and recognize the issue, we've been planning it for some point of time. one, is the strategy right? does it financially make sense?

do we feel we can add value? is it a good cultural fit for us to bring the organization together? long term, is this something that will create value for our shareholders, help patients, help consumers? and sometimes there's a lagging effect on that. you can't assume because we haven't done a dealny a particular period of time we haven't been working hard. one of the most important things you can do is walk away from the wrong deal. this is something that we're constantly, continuously updating and we expect that same behavior to continue. >> when you say we're working on a deal, are you talking about artelion? >> of course i'm not going to comment specifically on that. we're always working on a range of different deals that we do. look, they're never done until they're done. and in a company like ours with so many different diverse sectors it's important we're constantly identifying new innovations, opportunities that ultimately will help us continue to grow and help patients. >> alex, thank you very much for joining us. >> thank you, meg. >> much more from the health

care conference. up next, interim ce off of alexia. >> thank you very much, meg tirrell. last night's golden globe set records and set off the president-elect. a look at the winners and losers straight ahead.

welcome back. big surprises at the golden globes last night including one movie that broke just about every record including the most golden globes ever. let's talk a look at the

winners, losers and what it means for the media giants, new and old. julia boorstin joins us. >> lion's gate "la la land" set a new record with seven golden globes award, best actor and actress, best film in the musical or comedy section. first time a film has won more than four awards since 1979. out perform warning on lion's gate stock saying it can restore confidence in management's ability to source, create and produce movies. the film grossed about $86 million so far and will surely get a boost from this awards attention. fox fx won more than tv awards than any other network, two for "atlanta" and "people versus o.j.." netflix won two awards and amazon took home one tv award for goings goliath" and one film

with casey affleck in "manchester by the sea." the big snub, hbo. they went home empty handed despite going into the night with the most nominations of any company. 14 in total for critically acclaimed "game of thrones" "west world" "the night of" and "veep." first time that hbo hasn't won a single golden globe in a decade and only the second time in 26 years as hbo competes with more content than ever, both for tv and for new online platforms. guys? >> one line i did hear, i had plumbing issues with my heating system. you don't need to know about it, but fallon's line with jeff bezos trying to check in the day before but there was no one there to sign for him was actually pretty funny to me. julia, thanks. >> thanks, tyler. winter wonderland across the country. why that is particularly good news for one company. our interview with the ceo

outdoor fun company, polaris. we'll head back to the detroit auto show with an interview of the vp of honda. his thoughts on how the president-elect and eventually the president will affect his industry. that's coming up. ♪tishum myniaid,big g pcrest pr ctct pbyrgg baia ourle uestt

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good afternoon. i'm sue herrera. two law enforcement deaths in orlando. a florida police officer was killed in the line of duty this morning, prompting a massive manhunt for the suspect. deborah clayton was slain in a walmart parking lot in orlando, shot after approaching the suspect, suspect of also killing his pregnant girlfriend last month. deputy sheriff was then killed in a motorcycle crash while searching for lloyd. senate majority leader mitch mcconnell meeting with president-elect donald trump at trump tour thwer this morning. he is hopeful that his cabinet picks will be in place day one. >> we had a good meet about the senate agenda, confirming the

cabinet appointments, getting further down the road toward repealing and replacing obamacare. >> seaworld in san diego holding its very last killer whale show on sunday. it has seen attendance fall since the documentary "blackfish" criticized existence of captive orcas. a new traction in the pool this summer will be unveiled. i'll send it back to you, melissa. >> thank you, sue herrera. dow is struggling. nasdaq is marching higher. all-time highs, starbucks, american airlines, facebook. health care materials and tech, leading s&p sectors today. >> bust out the snow gloves, america. snow has been reported in all but one state. see if you can guess which one it would be. florida. noaa, national oceanic and -- what is it? >> atmospheric administration. >> thank you. >> guy that built an arc.

it's also the center for the knicks. >> that was some animal spirits there. 86% of the country covered by snow or ice as of sunday morning, the highest coverage so far this winter season in the u.s. if you're wondering about hawaii, yes. >> no. >> yes, up in the mountains shows the snow cap volcanic peaks. >> i'm on fire. >> on fire. he knows it all. >> it's the glasses. >> look at that. is that the hawaiian islands? >> put on glasses i'm busting out random geographic trivia. >> no problem. >> most companies probably hate all the snow unless you sell shovels or salt it's generally bad for business but not your next guest because snowmobiles are a big part of what they sell. scott wyman, ceo of polaris. first thing we have to talk

about, though, is that you announced you are winding down the operations of your victory motorcycle brand, big on-road motorcycle brand. why make that move? >> we don't want to make short term decisions. when we look at how we've done on motorcycles it's been largely on our indian platform. we looked at the future and profitable growth opportunity with indian is significant. victory, not nearly as much. quite honestly, the 18 years that we've been in victory has been a tough slog but i'm extremely proud of the men and women, engineers, dealers that put this brand on the map. and we're ending our era. number one in promoter scores. we grew 11% faster than the market. it's not like we're quitting when it's down.

we have to make those wise investment decisions and certainly going forward, indian is the better horse to ride. >> how does getting out of victory help your finances? >> well, obviously we said in our press release this morning we've lost money three out of the last five years. we haven't been profitable many of the 18 years we've been in business. it does provide a boost. importantly, it gives us the opportunity to invest more in engineering and marketing resources in the indian and slingshot and ultimate ly it wil help us in the short term but strategically in the long term. >> let's talk about the off-road vehicles here. majority costs associated with the rrl over. is that fair to say? has most of the financial impact from the recall already been felt? >> we'll know for a fact we'll have more in 2017. yes, if you look on a 100%

basis, well more than half have been accounted for. really proud of the way the team executed that, getting everyone back to riding safe vehicles. that's what our priority has been. >> what's your sense of overall business climate of consumer moods, willingness to spend, those animal spirits we've been talking about today? >> i don't want to bet too much on the trump rally just yet but you look at the consumer sentiment. we're not participating in that yet. with a great lineup of new products coming it's a very competitive industry and ultimately i think you like to think that that will bring consumers into the dealerships and we're bullish. as you talked about earlier, snow throughout the country,

that's good for our business. so, we're optimistic that '17 can be a year of improvement. >> how sensitive are consumers in your world to rising interest rates, scott? are most of the vehicles financed? >> about two-thirds are financed and, obviously, they're quite sensitive. that feeds into our promotion cost. we'll typically buy down to the extent that rates don't sky rocket, which no one is projecting that they will. we feel like we'll be able to handle that reasonably well. ultimately, rising interest rates tend to mean a stronger economy. and i would vote for that, versus the alternative. >> what's one thing out there, scott, that has you most concern ed? >> most concern is trade policy. we benefit a lot from the parts we bring in from other parts of the world. we've got a phenomenal manufacturing facility we just built in huntsville, alabama,

but also bring in products from our monterey facility. the risk to global trade is certainly something we watch closely. so i think we've got a lot of smart people coming in in the new administration and they're going to make good decisions and it should be better for our business going forward. >> do you worry about that mexico facility, scott? >> not at all. ultimately i look at ford, general motors and others that -- we all have a supply chain that is sourced from all over the world. and we make great products in roso, minnesota, great products in huntsville, alabama but also great products out of monterey, mexico, that serve our customers. we believe that that's the right way to run our company and it's good for our dealers and good for customers and ultimately i think that's going to prevail in washington as well. >> scott, we appreciate you coming on the program.

enjoy all that snow. get out there and tear it up in some of your gear, man. >> thanks, brian. from snowmobiles to pickups and suvs, auto show getting under way and president-elect is plowing his way through the industry and changing the way the industry operates. phil lebeau is standing by now with a guest live in detroit. phil? >> thank you, tyler. honda in america, donald trump is on the minds of so many executives here. put in some perspective just what people are thinking in terms of trying to understand where this administration is headed. >> for us it's a wait and see. we'll see how things play out. the bigger issue is just what's the global industry going to look like when we go on -- as we become more global and i think that that's what the focus has

to be. so, candidly too early to probably speculate but we're anxiously waiting to see what happens. >> how concerned are you that if there is some type of a border tax it's going to hit everybody in the industry, but it ultimately makes some people say i'll hang on to my car for now. i'm not going to pay a little extra for a particular vehicle. >> you know, with the fleet average age now 11, 11 1/2 years old, you know, there's certainly some pent-up demand. everybody is building better cars so they're lasting longer. that could happen but it doesn't seem to be affecting the industry rate. >> that's really good business. i don't think it will put people off. in terms of postponing purchases. probably more likely affect individual models if they are taxed or whatever. it's really way early days.

>> out of favor right now, sedans. put a little extra cost on there, really going to potentially hurt them. right? >> it could, sure. cost always has an impact. great news for us is we refresh a lot of our line. 95% of what we sell here, we build here. and we've invested in the u.s. we're pretty -- i don't want to say immune but -- >> back there is the odyssey. a lot of people say minivan is a minivan. it's still a crucial vehicle. is it not? >> it's a crucial vehicle and it's not yesterday's minivan. it's not my mom's minivan. this vehicle -- and minivans in general -- there are a lot of great vehicles out there. we think we've got the better one, honestly. i might be partial. these vehicles now have all the technology. it's not just for kids. it's for adults. we get this kind of bifurcated

customer group, young families with kids and empty nesters buying them just for comfort, luxury, ingress/egress and performance. it's a wonderful, wonderful vehicle. >> john mandel from honda when they won truck of the year, new ridgeline. even john said we thought it was going to be the super duty but they got it with the ridgeline. back to you. >> phil lebeau, thank you. still ahead more bad news for retailers. why that doesn't necessarily mean bad news for mall rets.

for more than two decades he has gone to war to keep his new york city chess shop alive. when his livelihood was threatened it was his love for the game that helped him make bold moves against his competition. for more on his story watch "your business" sunday morning at 7:30 on msnbc.

latest shopping numbers are out and it is bad news for malls. courtney reagan with a cheery report. courtney? >> hi, tyler. pieces of the holiday puzzle but now we have a comprehensive view, showing just how much e-commerce grew over last year. full holiday season sales grew 3.6% over last year, brick and

mortar grew just 1.6%. e-commerce up 12%. this is according to first data's analysis, based on all actual credit and debit payments and nearly 1 million merchants. see what i mean by comprehensive? majority of sales are still made in physical stores like we talk about. that piece is getting smaller. payment processor says brick and mortar holiday sales were nearly 75% of the total this year. e-commerce was 21%, almost 6 percentage points higher than the split we saw last year. oh, and by the way, thanksgiving and black friday shopping is far from dead. in fact, on those two days when you look at in-store and online combined, sales grew 9% over last year. department stores, macy's, kohl's and sears have proven how hard the total season was for that group. first data backs it up. category sales fell nearly 5% for department stores. the migration online in some

categories, sporting goods, books and music stores saw their brick and mortar fall 7% but the category grew 19% online. general merchandise, value retail, too, saw brick and moratar sales fall 3% but online sales for that category soared 29%. people are buying. where they're buy something changing and that does vary very dramatically within certain categories. >> they are changing drama at he canally. we saw that over the weekend, the limited announcing it will close all its stores. just go online. that's got to be a couple thousand jobs for all these stores. i get your point about growth, courtney. ran the numbers because it's snowing and i'm boring. 3.5 trillion mines cars and gasoline. 5 trillion total. 3.5, 100 billion of that goes to amazon. as big as they are, they're still only about 3% of x auto

and gas -- >> right. >> breck and mortar's not dead yet. they have an arm cut off. >> 79% were in physical stores. 21 were online. >> people like to go out. >> exactly. but i think, you know, toothspatoot toothpaste is toothpaste. >> it's a commodity. >> it's a commodity. clothing and shoes that's harder. return rates for those items when you buy them online are 30%, sometimes 40%. very costly to a retailer. >> do you buy clothes online? >> not a lot of clothes online. i have a hard time with things like fit, texture. i just can't quite tell. pictures online aren't good enough for me. >> i buy online certain brands. >> that you know fit a certain way? >> yes. this doesn't take into account returns, correct? >> exactly. these are numbers from basically like the last day of october through january 2nd. so if returns are made during that period then yes. >> this is a more swrgenerous

picture for brick and mortar because it counts gift cards. >> that's the tricky part of the accounting. you can't actually count it for earnings until it actually gets -- >> by the way, side note. off and onny story set around the power lunch team, i feel like a trend-setter. amazon echo story, some little girl ordered an expensive dollhouse using her parents' echo. >> genius. >> local reporter in san diego not named ron burgundy came out and talked about the story. but when he did the story, he ordered a bunch of dollhouses through other people's alexas. >> because it came on television? >> i don't want to say the word. i don't want to get our audience in trouble. he said a, order dollhouse, and the orders go through. >> it picked up the audio. >> i think this will be a serious problem. >> until they develop voice recognition technology. >> there needs to be a

secondary, are you sure? >> voice recognize. >> is this melissa or other members of your household? >> as mark zuckerberg did in his own home, there is voice recognition. >> that's right. >> the galaxy because he can do things. >> the technology is out there. it's a matter of when it will be introduced and commercialized. >> did you order a bunch of michigan gear for the courtney reagan household? >>o my gosh. i would never. would never. >> ohio state. i had to get that dig in there. >> thank you, courtney. stocks you need to know b we were talking about dismal days for the retailers. retail-related names, kite realty. raymond james actually upgrading these mall rets. kimco, both under drms performed the shopping ret sector. for kite, limited but price is attractive. ffo growth will help stock for

kimco, clear stock for accelerating. >> kite maybe not a household name but are in 20 different states. these are strip malls you probably shop at. you just don't know who owns them. if you do, keep an eye on the number of cars in the parking lot. up next, guggenheim upgrades viacom because they think investors will gain confidence in their new management. network and film business can be stabilized after a multi-year decline and viacom has finally made real progress in addressing audience weakness despite having mixed results. and also being what they call over channeled, whatever that means. target on viacom's b shares, 48, 25% upside. >> texas instruments, credit suisse upgrading them. well above consensus. credit suisse thinks it's underestimating and potential benefit from tax reform.

trading at the high enough semi conductor multiples but there's potential there. >> analog is not dead yet. final stock, wild horse resources. small cap call of the day. oil and natural gas company operating in east texas. simmons and company, overweight and $22 a share target. while horses got a good balance sheet with leverage to both oil and gas, calling the stock valuation attractive with a solid growth profile. their target on wrd is 54 -- implies about 54% upside. wrd is your small cap holiday, $2 billion oil and nat gas company. parade of ceos march is on. a pulse in financials with the ceo of huntingon bank shares.

kayla take it away. >> we are joined now by the ceo of huntington bank shares, a columbus, ohio, based lender who will be involved in the conversation here. steve, thanks for joining us. >> my pleasure. >> you said a couple of months ago you were much more optimistic after the election than 60 days prior. how has your optimism evolved over that time and what, in particular, are you looking to come out of this administration? >> we're continuing to see business investment take place and further discussions within our customer base. we have hundreds of thousands of businesses that we work with all the time. and so typically, the month of january is very important month. that's when their capital plans and commitments are firmed and starting capital expenditures are starting to be made. it looks very, very good at this point. certainly being in the midwest what's happening on auto and the expansion of manufacturing in michigan, ohio, et cetera, very helpful to us. >> so, how has that actually

been born out in the real economy on the ground? are you seeing more jobs being created, more loans being taken out, more capital expenditures planned for? i mean, what on the ground are you seeing companies do in response to this new environment? >> capital planning that may have been on the fence for several years looks like it's now moving forward. and so we're optimistic about a growth through investment activities that will occur. >> how will trade affect that? >> trade? the strength of the dollar has had an impact marginally on certain exporters, largely felt, that the point, we think. so the continued strength will have a more modest impact. overall, the economies in the midwest are doing extraordinarily well. >> you have 101 billion dollars in assets. under current regulation, you are considered systemically important. but you are excluded from some of the most ownerous parts of dodd/frank.

what affects you the most in the current regulation and what do you expect of that to get rolled back? >> it's premature to project what may get rolled back. there's still dodd/frank elements that have not been implemented. we've been on a roller coaster journey of the last six years with different limitations, ongoing efforts to strength sben bolster all of which causes change. we're in a period now where we'll have more stability to work from going forward. >> and your outlook on fintech here at the conference? you've grown by acquisitions in a big way. how do you make a cohesive strategy that is straightforward to the customer, easy to use but gives them what they want? >> we have a fair play philosophy, simple business model. we like our products to be simple, easy to understand, no hidden elements to them, including fees. as a consequence of that, we've grown our consumer and business base very significantly over the

years. we think fintech and the absent to use mobile and digital going forward will be vital to those. >> thank you for your time. steve steinour, chairman and ceo of huntington bank. the president-elect's son-in-law is raising some eyebrows with his latest business deal. closer look at jared kushner's reported new partnership with china next.

welcome to the second hour of "power lunch." i'm meli iissa lee along with bn sullivan and tyler mathisen. we're only five trading days into the new year. get this, this via tech stock is up 5%. company's ceo lays out his prescription for growth and happy birthday iphone. ten years ago, the late great steve jobs unveiled a game changer and started a revolution. apple stock up 800% in that time and rallying today.

apple's next chapter is straight ahead. i guess you could forget maybe dow 20,000 a bit. real action is over at the nasdaq, getting in all the highs. up nearly 3% so far this year. some of today's winners, biotech firm inside pharma, collaboration with merck. nvidia up 260% in the past year. if you are thinking about a trip to london, now may be the time to go, pound falling at a near all-time low against the dollar, crude down 3%. closing trades coming up. tyler? this hour nbc news reports that jared kushner, donald trump's son-in-law, ivanka trump's husband, will be named senior adviser to the president. john harwood has more from washington. >> this has been expected for some time but now we have the news from peter alexander that this is going to become as formal as early as tomorrow.

it is an extraordinary political rise for jared kushner, his father, charles kushner is a prominent developer. this is the husband of ivanka trump. they were married in 2009. and he is somebody who oversees a family real estate business, wholly separate and apart from donald trump's and is now poised to be the most influential family member, advising a united states president since bobby kennedy was attorney general under his brother, jack kennedy's presidency. this is an extraordinary rise for this very young man, in his mid 30s. he is someone who became birks the end of the campaign, a very close and senior adviser to his father-in-law. and he is going to continue that. there will be questions raised about conflict. there will be questions raised about nepitism laws. i'm sure that that's nothing that the trump team will not be able to navigate, depending on the title and duties assigned to jared kushner but this is a major development in the nature

of this white house staff, guys. >> what do we know, john, if anything, about mr. kushner's plans to divest or step away from his business? i assume that will get announced at the time his appointment is announced. >> maybe, or it will be discussed by the president-elect that his wednesday news conference where, remember, this press conference he was going to hold in december to talk about how he was going to handle his own business deals. he delayed that until wednesday. this will be the first press conference since his election as president of the united states. don't know if there will be anything formally done. for example, if jared kushner is announced by the transition formally tomorrow, will they include with that a divestiture plan? i wouldn't expect one but we'll have to see when and how they address it. certainly donald trump has not addressed this the way that past presidents have or government ethics experts advise, but he is

doing it his own way. >> john harwood, thank you. this news comes as china's u umbung, real estate business owned and run by jared kushner. here with that side of the story, and susan lee looks at who or what umbun really is. >> real estate companies will come under much more scrutiny. kushner company owns more than 20,000 apartments and over 14 million square feet of office spa space in the u.s., the at&t building in chicago, several luxury towers, hotels and developments in new jersey and 666 5th avenue, one of the trophy office towers in manhattan. reporting over the weekend a week after the election, kushner met with the head of anbang

group which the kushner's bout baut for a record setting $1.8 billion in 2007. kushner's other lenders, israeli bank, is under investigation by the justice department. all that have means that ethics lawyers say his business ties could pose potential conflicts. tyler, to your earlier question, kushner's attorney saying jared is committed to complying with federal ethics laws. he may resign from his family's company and divest substantial assets in accordance with federal guidelines and recuse himself from matters. buying up to $7 billion in properties in recent years, most of them in downtown manhattan. >> robert, thank you. to susan lee with the anbang side of the story, chinese company making bids for american assets. backers or what is known about them, anyway, are raising some

eyebrows. >> especially when you're on a $30 billion spending spree around the world the last few years. a lot of questions remain about who owns the company and where the money actually comes from. anbang seemed to come out of nowhere in 2004 when it was kind of hard to get an insurance license in chiena. initially, it was a provincial auto insurer. fast forward to 2017 and anbang now has global assets nearing $300 billion with offices around the world. the man at the center of the company, orchestrating the meet ing with the kushner's is the founder and chairman wu xiaohui. some, anbang had to walkway from, including $14 billion bid after questions were raised with the ownership of the company.

morgan stanley have even declined to provide m & a advisory services citing a lack of information. now "the new york times" tried to dig further into who actually owns anbang. what they found is that chairman wu was actually not listed as the owner. i should, point out, that is not unusual in china. anbang seems to be controlled by a number of shell companies leading back to individuals that chairman wu grew up in the same small county of china. when i speak to my sources in china and asia pacific they don't have doubt bts deep pockets of anbang. what they have questions about is where this money comes from. the reason they don't have doubts about the deep pockets is because chairman wu is very well connected, married to the granddaughter of the second most influential chinese president in history. >> so he is absolutely tied in. >> yeah. >> to the beijing power nexus.

>> paid research service we use, very expensive to use, they've got great data. there's nothing about anbang. "new york times" has a picture of their headquarters, basically above like an auto repair shop. there's just so many questions about this company. >> yeah. i want to note i tried to log into the web page of anbang's insurance group, the actual headquarter and head company. it actually wasn't found i couldn't get on to it. >> i called them in china and nobody answered the phone. they actually did not have -- this was a couple of months ago when they made the bid. i was hosting squawk, filling in. they made the bid for star wood, everything came out. in the break i called up a couple of times and nobody even -- there was no recording. it's supposed to be a major corporation and nobody is answering the phone. >> deal for starwood fell apart, deal for hotel coronado fell apart because of questions -- treasury has access to capital flows and a little bit of ability to see under the hood. a lot of people in government are uncomfortable with the financials and who actually owns

this company and security concerns as well. >> the president was uncomfortable because he didn't want to stay at the waldorf, where presidents always have stayed. >> that's where the concerns about jared's involvement with this company go to. do you want to be in business with a company where the u.s. government has said we're not comfortable doing business with you? that's the issue. >> thank you. after getting so close on friday, march to dow 20,000 taking a breather today. that doesn't mean the bulls are fading. not necessarily. >> see the economy accelerating. we're about to see earnings estimates accelerate. those will be the fuel, if you want, to drive this into the next level. >> i think we'll go through the 20,000 number, boom. it's just a question of when it gets rolling. >> we're going to make stonl stocks great again and we're going to actually believe in equities in u.s. stocks. >> but aleon's chief executive adviser and pimco adviser on with warning about what could

kill this rally. >> stronger dollar does two things if gets too strong. keep an eye on the dollar. the hope is that europe will get its act together. that will be key to sustaining the rally here. >> two stocks being impacted by the strong dollar, coca cola and procter & gamble, down today on a sell call by goldman sachs, citing the dollar. should investors ride the rally or is it time to get more cautious? jim mcdonald is chief investment strategist with northern trust, has nearly $1 trillion of assets under management. welcome back. good to see. >> you thank you, tyler. >> would wha couhat could trip bull run? as simple as a rising dollar? >> our number one risk case is around inflation. the growth picture looks pretty dependable. we've seen improvement momentum into the end of the year. confidence has improved. we will get help from tax reform and regulatory relief. if the economy starts to heat

up, inflation ticks up, the fed raises rates more than people expect, that's the number one risk to a continued rally in 2017. >> if you're an owner of individual companies, how concerned should you be about tweet risks? >> i'm sorry, could you repeat that? >> how concerned would you be that, for example, the president-elect would tweet about your company if you're an owner of an individual company? do you need to take that into consideration at all? >> sure. so i think that what is important is to focus on what the new administration will do versus what they say. there have been several circumstances where they've raised a lot of rauckus but the taken centrist approaches. having said that diversified portfolio of not only stocks but broad assets is always the best course of action. >> how are you factoring into your view the risk of any kind

of international conflict, whether it involves the united states or not? is that something that you can diversify against or protect against in any meaningful way? >> so, tyler, we think there are two types of economic risks or two types of risks in the new environment. the first is economic risk. we don't think the new administration will do anything that's going to put the market or the expansion at risk. secondly as geopoliticals, do we have a problem with north korea or in the middle east? the only protection is a diversified portfolio with bonds and stocks but geopolitical risks tend to be very transitory. trying to get out ahead of those and getting back in shortly thereafter is a very tough game. >> so if i had, let's say acres round number of $10,000 to put to work today and i'm an individual with a family, i'm 50 years old, how would you

apportion it between u.s. stocks, bonds, real estate, cash, et cetera. >> sure. our biggest positions are to be overweight u.s. equities, overweight u.s. high yield and overweight natural resources then fund that from somewhere. the areas we think look least attractive are investment grade bonds. of course, you have to have enough liquidity in the portfolio to fund any spending obligations that come up. u.s. stocks, high yield and natural resources are our favorite. >> jim, thanks. appreciate it. jim mcdonald, northern trust. appreciate it. our powerhouse monday show continues. coming up, the heads of assu assurant. happy 10th birthday to the iphone. one decade ago steve jobs rocked our world and changed how we communicate forever. a california reaction to a flooded street. video coming up as "power lunch" rolls on. ca yretr

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let's get to the bond market. rick santelli is tracking all the action at the cme. >> in our time zone, ten-year note yield has been 2.37 to 2.39. hit it 2.44. we may be spending in the low to mid 2.30s, evident with a chart starting a week after the

election. the overnight to three-month financing rates, kind of the high congress equivalent of liboor. even though the overnight dropped from 60 to 14%, one drop, one, two and three month are at elevated levels. dollar/yuan chart is relevant is the dollar strength seems to still be consistent. tyler, back to you. >> thank you, mr. santelli. wild winter weather over the weekend, including states that don't normally get snow. kids across the southeast getting a rare chance to go sledding. look at that. 49 of the 50 states have some snow on the ground. every state except florida. in nevada, they're dealing with flooding from massive rainstorms, extending into northern california. when there's a flooded road in california, what else do you do but go surfing? there you see a street surfer.

probably know our next guest company from your phone. darn good chance that assurant assures it. you drop it you have to send it to somebody. did you know they do rental home, flood insurance. and have been riding the trump rally since the election, up close to 20%. your next guest is also on the business roundtable. joining us on "power lunch." i did not you did health insurance until after doing research you are but you're getting out of it. if obamacare is, indeed, repealed, would you consider reversing your decision and staying in health insurance. >> >> short answer is no. we had a long good history in health insurance but trends even before obamacare were not that attractive. >> what's the problem with health insurance? it's something we all need. is it just that americans are that unhealthy? is the system broken? drug costs, hospital -- are they

too high? why doesn't health insurance work? >> it consumes such a large percent of our gdp and growing more rapidly than our economy, squeezing out the ability to make money in that business. >> in parts of the other business mobile phones, homeown homeowners' insurance, can you give us an idea of how you see the economy right now? is it getting stronger or commensurate rise? >> car, house, rental. if we get a demand growth, that will benefit our company. we'll sell more products. our companies will sell more products. we'll sell more policy. >> forgive me for not knowing this. it's not service contracts you're insuring. with my cell phone i take the insurance. if i drop the cell phone, it doesn't work, i come to you. right? >> we do a little bit of everything in cell phones. we're one of the largest repair and logistics companies.

we'll repair the phones and resell them in addition to things like insurance, if you break it. >> are you seeing that pickup in the demand for policies? you mentioned whenever there's consumer demand for something you're seeing it on the other side in terms of what you underwrite. are you seeing the animal spirits finally reach the consumer and reach you in terms of the number of policies out there? >> not yet. with cell phones, for example, the consumer understands how expensive it really is. it used to be subsidized so it looked cheaper than it really was. we've seen more and more purchasing of our products the last couple of years because of that. >> your withdrawal from the health insurance field and your answer was we got out of it because it's so doggone hard for health insurance companies to make money at that business. did i hear you right is this. >> yes. >> so is it right, then, to rely on private health insurance companies to help solve the problem of covering americans for medical issues? in other words, if they can't

make money at it, can they do it? are we right to rely on them? >> only way you can make money at it is to be really big and we were medium, 1 million or so policies. not big enough to be relevant. >> scale is everything. >> scale is everything. >> you don't have adverse selection have, a big enough risk pool and spread it out across people of different demographics and health profiles? >> exactly. if you're not big, basically you see all the mergers in the health insurance space. it's to create that scale to get the cost down to be able to remain relevant. >> on the business roundtable. have you met mr. trump? >> i have not met mr. trump. >> what would you do if your company or your industry -- cell phone insurance costs, way too high. s sad!!! what would you do if you got that tweet? >> i wouldn't engage in a twitter war. we feel good about our products and services and the value we

attach to it. we protect what people care about. if something goes wrong -- >> i'm saying if you're advising one of these companies that have gotten tweets like this is the president-elect and the soon-to-be president of the united states -- >> is that the biggest fear on the business round table? you get together, you talk and you're like, i don't want to get a tweet out there? >> the good news is that if you lay low it will pass on to the next topic. that would be our strategy. >> you don't seem very worried about it, alan. >> people can attack you any time you want. you don't necessarily have to engage in those attack. >> trump uses an otterbox maybe so there's no risk. i don't know. alan, pleasure to have you on. good luck. >> my pleasure. thank you all. don's light fixtures and $5. couple of stocks keeping us away from $20,000, coke and procter & gamble. the big issue hanging over them coming up in "power lunch."

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welcome back to "power

lunch." the good, the bad and the ugly. first, the good, mars is buying the company for more than $9 billion including debt. only bad ticker symbol woof is going away. the bad, five below, stock down 2.3%. it is an ugly day for acuity brands. making loiting, fixtures, higher manufacturing costs and soft demand and that's not a good combination, tyler. >> thank you very much, melissa. busy half hour still ahead on "power." the head of monsanto about his company's goal to be carbon neural and more and alexion pharmaceuticals ceo will join us, key drugs that that company is working on. as if that isn't enough, we have a big move in the price of oil. closing trades next on "power lunch."

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donald trump today. he also commented on the upcoming confirmation hearings. >> they're going great. >> they haven't started yet. >> they'll all pass. they're all at the highest level. jack was even saying they are the absolute highest level. i think they'll do very well. northern ireland has been plunged in crisis after senior catholic leader says he is resigning after deepening tensions with his protestant colleague. the party tends it trigger early elections. charleston church shooter dylann roof has decided not to testify at his sentencing hearing and won't call any witnesses. the jury has been sent home and will begin hearing closing arguments tomorrow. roof will get either the death penalty or life without parole. you're up-to-date. that's the news at this hour. back to you guys. ty? >> thank you, sue. the dow about 100 points from --

yeah, about 100 points from dow 20,000. a record on wall street, nasdaq hitting new intra- day highs. 5538 doesn't roll off the tongue quite as well as dow 20 thou. the oil market is also closing for the day. how weak crude oil was by jackie d at the cnbc energy desk. >> the complex was down today. we saw crude oil and brent near 10%. rbob gasoline as well and natural gas 5.5%. on days like these when energy is down, don't hold your breath for that dow 20k. look at the stocks as well. issues troubling investors today, resurgence of shale, all things we have cautioned about when it comes to the crude trade. yes, it's cold now but trade is what's on down the line. more optimistic models have this

trade continuing to sell off. you're looking at almost a dollar move lower in just a few weeks when it comes to nat gas. one last night, markets and dollar taking a pause today, has gold trading higher by a little more than ten bks. back to you. >> thank you very much, jackie. jp morgan health care conference, meg tirrell is live with the head of alexion fa pharmaceutic pharmaceutical. >> david brennan, interim ceo of alexion. thank you for joining us. >> thank you for having me on. >> just taking the seat in the ceo spot after some disruption in the company at the end of the year, ceo and cfo ending on the same day. you said you don't need to recede any financials there was an inappropriate tone set at the top. what does that mean exactly? >> i think what the investigation showed was that there were some inappropriate practices taking place in one particular area of the company where policies and procedures were being violated.

and as the investigation went on and people were interviewed, it became clear that there was a tremendous amount of pressure being put on them to take some of the actions that they took. and i think the finding of tone at the top was one that, you know, really played back to the most senior management and their knowledge of what was going on. so, you know, it was with that in mind that we needed to make some changes. and we have done that with our 10 q filing last week, remediation plan to say exactly what it is that we'll be doing to resolve that. >> having done that, are thing right with the ship now? >> we're moving on, yes. the focus of the company is on the rare and devastating diseases that we, you know, addressed to try to bring transformative therapies to them. one thing i've seen from people at alexion is how focused people in the company are on a patient-by-patient approach to doing what we do so well.

yeah, i think we're moving on and i hope our investors move on with us. >> as you're in the middle of the ceo search, any sense of timing you can give us? would you stick around as ceo? >> so, the board has a search committee in place. i'm a member of the search committee. i didn't take this role with the expectation that i would, you know, stay on as ceo. i'm 120% committed. i'm based in new haven, working more than full time. and i think the search process is just that. we're going to go through a very careful process to make sure we can identify a leader for the company who shares the same kind of values that the company aspires to. at the same time, be sensitive to the type of person it is. so this tone at the top issue is something, you know, that we deal with, you know, right away and having a new ceo who understands the importance of the tone at the top that the board wants to have. i'm not time constrained in how long i will do this. i'm enjoying it. it's a great company.

great people doing transformative things for patients. i mentioned it to you earlier, but it energizes me. >> alexion makes drugs for extremely rare diseases, ultra orphan diseases, but at the same time it comes with very high price tags. $400,000 a year per patient they think, wow. do you worry at all that that puts alexion in the crosshairs of a president-elect who is focused on drug prices? >> i think the business model that alexion has in place is sustainable, both in the united states as well as two-thirds of our business is outside the united states. you know, the issue of pricing, i think the way we reflect upon it is in terms of rarity and severity of disease and then is our therapy transformative? take a look at solaris, for example, people would die from

pnh if not treated. intrinsic enzyme replacement for pediatrics for babies who -- 47%, over 50% of children would die with hypophosphatasia by the age of 1. so it's that transformation that i think speaks to payers and speaks to governments when they look and say we don't have a lot of patients like this. it does transform, you know, the diseases. and there's always pressure on pricing, you know, that will continue. i think the model that we have in place and the types of drugs that we -- the types of medicines that we bring to these diseases are really, you know, very special. it's really a very special niche. without this company, those people have no hope. this was not something that the rest of the industry was doing before alexion did it. >> david brennan, thank you for joining us. >> thank you, meg.

>> back over to you guys. >> thank you, meg. the big roadblock on the way to dow 20,000, trading nation and dow 20,000 is next. iastht ed to geanstat ismynsanmpand atma iastht wald it ee ou.u.wher?e'yourro iee woy whtaands™tes n spe t ef atyo a if ererdiscover odavokab

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shares of monsanto up 14%.

they've had a couple of offers leading up to the september bid when two companies finally agreed on a $66 billion deal making it the biggest all-cash deal ever. will the incoming trump administration approve it? hugh grant, pleasure to speak with you. >> higher, lower or the same? >> i feel more confident today than i have since the beginning. gave us a 99% favorable vote at the time of the year. it's a deal with very, very little overlap. i'm feeling good. >> the president-elect has made a lot of comments just on the sheer size of companies. saying that the odds of the deal

passing is one in three. do you agree with that assessment? >> no. i would say it's a lot higher. two things. number one, we're in an indus y industry, agriculture that really needs innovation. so i think all the deals are out there today really need to be approved. bayer, there's very little overlap between these two businesses. >> you mentioned the need for innovation, the flip side of the trump administration is this desire to get rid of bureaucracy. are you more optimistic under a trump administration that this new technology in innovation is getting to market faster? some technologies take up wards of a doc aid to get to market.

new soy bean product took us seven years. i'm very hopeful that we see an acceleration in the regulatory process, specifically in the epa. usda has been moving faster but it would be nice to see some acceleration there and i think the new administration has talked directly to that. >> one thing the new administration clearly has focused on with laser intensity is jobs and job creation in the united states. how many monsantos companies are in the u.s. now and how would you see that growing over the next few years particularly if they're acquired by a german operator? >> 1,000 people today worldwide. about 10,000 of them are here in the u.s. and about 4,000 of those are

right here in st. louis. with a combine d deal. the heart of plant biotech and seed research and i think over time we'll see an increase in jobs in this area. we're just finishing a $400 million expansion about 20 miles from here. we'll cut the tape later this year and i expect in the next couple of years we'll see somewhere in the region of 600 new high-tech jobs in the center. so i'm bullish on job creation. >> here we'll leave it there. thank you so much for joining us. really appreciate it. >> you can probably blame go goldman sachs for the dow not hitting 20,000 today. why? they've done their part. that's a freudian -- >> what did you say? just kidding.

>> it's one of the words my 2-year-old has learned very well so it's in my head. anyway, goldman downgrading both coca cola and procter & gamble. should you stay way from the big consumer staple stocks? let's ask the trading nation, team that always smells great. aaron gibbs, i think you fundamentally disagree with this goldman downgrade of these two stocks to sell. do you not? >> yeah. first of all, we only see on average about 35% of the revenues coming from outside the united states. and then they also -- mid to low 20% range. anything below 20 could help them when it comes to effective tax rates. so i disagree that i think there could be a potential benefit and i don't see as big a concern with the increasing dollar. so i do like procter & gamble a

little better -- sorry i do like coke a little better than procter & gamble. valuations are so low, trading below their three-year average. i don't see it quite as dire as the goldman note. >> before i let you go, at some point we will get to dow 20can k, are we not, erin? >> yeah, at some point. i feel comfortable in saying that, yes. >> it was bold. max wolf, all right, procter & gamble, coca cola, deserve a downgrade? like one, hate both? what do you think? >> consumer staples we like going forward. currency is the tip of the iceberg here at the fx. it looks like a very big reflection. basically the united states has been the guarantor. you're on the top of the deck and something comes along like a president, new series of policies, sentiments and

shuffles that deck, the chance that you fall in the deck is very, very high. we don't think the markets have priced that at all. big global u.s. brand names will come in for a global reaction to how america is seen by her neighbors and a decline of global cooperation. very right to be worried. fx is the tip of the iceberg. 2017 will be known as the year of big volatility. no denying it. you don't usually get to pull that off twice. >> max wolff, erin gibbs, thank you very much. for more trading nation go to tradingnation.cnbc.com. ten years ago, steve jobs took the stage and introduced the iphone, major development. we take a look pack on that major milestone next on "power lunch." and now the latest from trading nation.cnbc.com and a word from our sponsor.

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welcome back to "power lunch." commuters in new york city will get cell phone and wifi coverage on the subway stations a year ahead of schedule. transit wireless invested more than 300 million in the project at no cost to consumers and taxpayers. that will make the subway stations get better reception than my home. >> i can hardly remember the days when you couldn't get reception in the subway. >> half of the subway station in new york city is outside. so you're fine anyway. it's above ground. this is one of those situations where we're going to need it one time but the rest of it, i don't know, what are you doing? nothing. i've got 30 minutes to kill. let's talk. no thanks. apple helping repel the nasdaq -- >> letting that go.

>> the new highs hitting a high. josh has more on this very important anniversary. hi, josh. >> that's right, melissa. ten years ago at mac world here in san francisco steve jobs introduced the iphone. jobs at the time saying that this device would reinvent the phone and the original press release apple tauted it as a revolutionary new mobile phone with pioneering and visual voicemail. highlighted its use for music lovers allowing music lovers to scroll through entire lists of songs and as a break through internet communications device with an advanced web browser. this was a product that did re-define modern technology. >> the way i look at it is that in the early 1980s the personal computer came along. that became the center of my workplace. everything sort of flowed through that for the better part of three decades. then the iphone finally grabbed

everyone's attention and pulled us away from that. and it's -- that's just an amazing fundamental shift. >> today though there is a debate on the street about the iphone's future. there are worries about market saturation and its most recent earnings report apple said it sold 2.5 million less iphones than a year earlier. still, apple stock up some 20% in just the past six months and today, as you noted, melissa, apple touching a new 52-week high. polls betting that the iphone 7 will be better than expected in the quarters ahead. of course its ceo tim cook can still wow consumers with the new phone expected in the fall. guys, back to you. >> i was going to say, josh, the tenth anniversary raises expectations for the iphone 8 in the fall. >> yeah, no, i think that's absolutely true. i think they're betting on a blockbuster, melissa.

the rumor mill is already in full swing about what that might include. i've seen notes on improved battery technology, wireless technology, vr and ar. they're looking at the estimated 300 million active iphones that are out there, three years old or older and betting that a lot of those people will want to upgrade to a phone that's faster, brighter display, stronger battery life. >> the flip side is some people are holding off getting an iphone 7 thinking i'm going to get the 8, which i'm personally doing. >> 7 just came out. >> yeah. that's certainly part of it, guys, that you're outlining. if you talk to guys, the few with a sale on it, they'll say part of their case, not only that but more broadly they'll argue that the iphone's best days are behind it, that you're simply going to see what you see in a lot of hardware which is a decline in average prices, margins. that's the debate. >> i'm waiting for the 11. josh, if there was one thing, one improvement that you think

could be transformational for the iphone or for smart phones generally, what would it be? >> well, it's interesting. i did talk to some apple shareholders for the story about what they want to see. some of those portfolio managers, i'll be honest, what they want to see is that apple really steps up the game on the bandwagon with new technology like virtual reality, augmented reality. there we know there's been a lot of hype but there's been a lot of criticism at least from virt trial at that the hype hasn't caught up to the reality. they're hoping that tim cook brings that to his platform in the fall. >> i think guys who would say battery life. >> battery. >> everybody is frustrated that we can do these cool things but we're getting a couple of cool hours. go to the airport everybody is huddled in the corner next to the only plugs you have. that's here. most airports in america have

been upgraded since the '30s so they have extra charging stations. >> for me it would be battery life i think on any phone. >> longer battery life and wireless charging, my dream. >> your dream? your total dream? >> no, iphone specific. let's be clear. >> my dream is to float down the nile. cruise for a couple of weeks. >> be in denial. >> something at 3010 this week is "fast money." melissa lee, first off, congratulations. a decade in tv is like a hundred in human years. >> ten years ago yesterday "fast money" turned into a daily show. all this week we are celebrating our decade anniversary. we have a long line, icahn, lutanything, smith, regis philbin, "fast money" fan.

he's come on the show. >> that's two icons on the end. >> week-long celebration. >> you have a new set because "squawk box" has also moved into the nasdaq. it's early. how are you guys getting along? is it jets and sharks? are you getting along? >> one big happy family. so tune in starting tonight. meantime, let's get to phil lee b lebeau at the detroit auto show. you heard sergeione. give us some perspective on the announcement today for jeep and the investment and the additional jobs. >> look, it's something that's been in the works for a while. we are finding ways to round out the development of jeep on a global scale. we've taken jeep now into three other countries in terms of production. we've done this in the product range that is -- can't be exported out of the u.s. because of customs considerations.

the rest of the portfolio, cheroke cherokees, all the corner stones of these products need to have the opportunity to develop globally. this investment we announced will finally happen. >> you know that everybody looked at this tweet or not this tweet, this announcement from you and they -- you don't tweet. they said, well, that's in response to donald trump. how much of this was because of the pressure he's been putting on the auto industry to create jobs in the u.s.? >> it's a single number there. i think it was fine when we announced it because we had conversations for a number of years. i think the timing may have coincided sort of american made

products and american production but i think the substance of the announcement was inside the house for months. >> so you haven't had a conversation with his team or with him and said we're announcing this? >> no, i haven't, although i share his commitment to this country and to making this as powerful a manufacturing base as we can make it. i think what we've announced today is something we can appreciate the direction. i don't know if he appreciates the details. it's incredibly well reasoned development. you were talking with foreign reporters that perhaps a trump administration might take a more favorable view towards fiat chrysler and general motors merging. give me your thoughts on that. at least it was reported on. >> i think the amount of imagination evolves especially between one car lot and another

is pretty high. some of it i attributed to jet lag. the only thing i ever said was that if your view in life was that you want to create an american champion, then there's no doubt that a combination, whether it be with us or somebody else which is american made, we'll certainly be in line with this thinking. i suggested that it was possible, it was real, and effectively we've gotten the rebuff from our friends down the river. that's not the issue. look, let's have a clear path to make the numbers. >> sergione, the ceo of fiat. want to give us the mike check again? >> no, i'm all right. >> back to you guys. >> our thanks to phil lebeau who managed to catch up with him. very, very newsy event. >> absolutely. >> this year. >> more than any time since 2009. the auto industry is in rescue

mode is this auto show so newsworthy. >> certainly in the cross hairs of the president-elect. >> ford announcing it's bringing back the bronco. you wonder if that's a long-term projection on gas prices. >> "power lunch" is done. >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> which makes me bill griffeth. move over dow 20,000. the nags dak taking center stage. the tech heavy index hitting a record high as it did on friday. we'll tell you what's behind that move coming up here. and president-elect trump meeting with business leaders. we have his discussions with the founder of alibaba and ldmh. >> we have the heads of bb&t,