shares. they're up 3.5%. steph, what do you have? >> american express and estee lauder. visa trading at 23 times. visa quarter's great. american express has great numbers coming. >> cheapest stock in the dow according to cramer last week. josh? >> amd. volatile stock on the verge of its next leg higher, i believe, above 12.25. the juice is loose. >> and running. market is, too. "power" starts now. they say real estate is all about location, location, location. and today's top business headlines are the same. because they're all about the white house, the white house and the white house. president trump talking financial reform, meeting with some of america's biggest ceos and hitting iran with new sanctions. all you need to know about every one of these key stories as stocks rally. i'm brian sullivan. power lunch begins right now.

>> brian's right, stocks are rallying. welcome to "power lunch." i'm michelle caruso-cabrera, thanks to a better than expected jobs report, dow having the best day of the year, back above that 20,000 level. financials doing extremely well on donald trump's talk of wanting to roll back dodd/frank. goldman sachs and visa, biggest gainers on the big board right now, melissa. >> i'm melissa lee, along with tyler mathisen. president's meeting with all those major business leaders just breaking up within the hour. >> eamon javers has the latest with what was on the agenda and all the executives that have come out have remarked about how engaged all of the participants were in this session today. >> that's exactly right, tyler. it's interesting to see some of the mix. executives are coming out. they won't say a word. they're stone faced. they walk right past us.

others eager or anxious to talk or at least semi willing to talk with us. we talked to mary barra of general motors. she called it a productive meeting, said it was a good session. general motors has been subject to some political pressure from this new trump administration. we also heard from gary cohn who, of course, wall street viewers will know is the former number two at goldman sachs, economic adviser here at the white house. he talked about some of the goals for today's meeting and what was on the agenda. here is what he has to say. >> first thing hurting business growth is regulatory policy. the second thing hurting business growth is tax policy. and the third thing hurting business growth is our infrastructure. we have to attack those three things. ironically, that is our agenda. >> so, wide ranging agenda here at the white house today. everything from immigration to taxes, to health care. all of that being discussed here at the white house today. and we're just going to move out of the way here. there is a smallish motorcade emerging from the white house. but a big agenda here at white

house. we'll see if we can talk to some of the remaining executives who are still in here, tyler. back to you. >> eamon, thank you very much. headlines out of the white house press briefing today. let's check in with john harwood. john? >> tyler, sean spicer came into the white house briefing room, first of all, expressed satisfaction with this jobs report today, said it had to do with higher confidence in the u.s. economy since donald trump's election. certainly some of the obama team would say since he was president till january 20th. he had something to do with it, too. sean spicer also claimed credit for the new deal announced between the pentagon and lockheed martin for the f-35 fighter jet. this has been a subject of donald trump's twitter pressure, twitter diplomacy. sean spicer said the savings had come about as a result of the president's efforts. >> another great deal was reached with lockheed martin.

total of -- 55 were purchased for u.s. military that added up to a total of $455 million savings for u.s. taxpayers with an average cost reduction of 7.5%. another big win that the president has delivered on for u.s. taxpayers. >> it's important to note that the pentagon had announced in december, before the president's intervention, that the cost for the next lot of f-35s were already coming down by approximately the amount announced in the deal today. it's a little murky exactly what the president's contribution to those savings was. guys? >> john harwood at our washington bureau. andrew sorkin has been at the white house, catching up with the ceos who were in the meeting with the president. i'm impressed how energized the

executives you've been talking to are as they exit that meeting and how engaged the conversation seems to have been. >> reporter: it does appear to have been an historic meeting. we are on the north lawn, speaking to ceos and other executives in that meeting. jack welch, former ceo and chairman of general electric. here is what he had to say about that spirit you're talking about, tyler. >> i've been coming down here since 1980. in these meetings. and this is the first one where i had an engaged president deeply into it. this was the most exciting presidential meeting that i have ever been in. >> you know, tax, trade, regulation, infrastructure. all these issues were discussed, including one that's been a bit of a headline and an over -- lit bill of a cloud overhanging this meeting, immigration in the executive order that took place. uber's decision to step away from this council. we talked to steve schwartzman

moments ago about that decision. of course, he is the one who convened the meeting and brought kalnick into the meeting. >> his business was being very adversely affected. he had discontent among his employees and this group actually takes a lot of time. and he basically said i'm encountering too much in the way of headwinds. >> final issue to mention, mark weinberger was with us and it's an issue that probably doesn't get enough attention but interesting that donald trump is taking on. that is women in the workforce, making it a centerpiece of his economic agenda. ivanka trump in the meeting along with dena powell this morning, talking about women in the workplace, to all of the ceos there. i think we'll see a lot more about that issue in the coming

days and weeks. so, pretty -- a pretty important and historic morning here at the white house. guys? >> andrew, i've been hearing you ask them all about the border adjustment tax. >> right. >> which is what paul ryan wants to put in corporate tax reform. and your analysis based on everything you've heard from all of these guys who have come out, and women? >> hard to say where everybody lands. you have people like boeing on one side of the world, walmart on the other. they all clearly went in with their own agenda to press this morning, and apparently there was a debate, a spirited one, on all sides from all different constituencies, including the president who pushed back in some cases. we tried to define, if you will, where the president may land on these things. i hate to tell you, we don't have an answer just yet. it is the issue du jour and one we'll have to continue to watch. >> we keep waiting to hear what he thinks. >> thank you. >> week two of his administration, president trump showing no signs of slowing down

his torrid pace of action, executive actions and today a wide ranging meeting with some of today's biggest ceos andrew just told you about, as well as sanctions to iran over a missile test. former economic policy adviser to vice president joe biden. ron, first to you. we heard about andrew and the executive meeting. outside of that, let's think about executive orders. the question that many viewers seem to have is where is congress in this flurry of executive orders? are they sitting back knowing this near daily misses from the president won't carry that much weight? where has the legislative body been so far? >> good afternoon, brian. congress has been very active. the house of representatives just passed legislation to repeal one of president obama's actions he had done, dealing with methane emissions on the way out the door. looking at the congressional

review act, ways that the prior administration has acted in a manner that could cripple american economic innovation and find ways to bring those back and bring american companies back. >> i get your point, ron. let's be clear. we're talking about executive orders on immigration policy, potentially rolling back financial regulation. now you're talking to me about congress doing something on methane which probably only the methane industry cares about. >> you asked me where congress had been. this is one of the areas where they can act to repeal an executive order. that's my point. immigration, it's very important for congress to have a voice in this. we need to make sure we have the educated doctors, pharmacists. there needs to be a strong negotiation with the white house on certain areas of president trump's executive order on immigration. >> jared, you keep trying to say something. go ahead. >> i'll tell you where congress is. congress is really deeply tied up on the repeal of the affordable care act. they simply don't know what to do with themselves.

i'm talking specifically about the republicans. obviously they've been trying to kill this thing for -- ever since it was legislated. yet there is no backup plan. now some members of congress on the conservative caucus are stirring the pot further by saying, wait a second. maybe there's aspects of the affordable care act that we don't want to appeal. >> that is all really interesting. >> wait, wait, wait. >> i want to tell you about what's going on today, ask you about this executive order related to dodd/frank. here is my question. >> sure. >> so many regulations have been put in place as a result of dodd/frank not necessarily written into the law. >> right. >> tell me how much can happen just through regulatory forbearance where there's a change between the regularitier and their interpretation of the regulation. >> a lot can happen through that channel, particularly if you're essentially discouraging regulators from -- but you can take dodd/frank without

legislation. executive orders are related. they're talking an executive order to block the fiduciary rule. they can take that one down. it takes a long time to unwind it. as far as dodd/frank goes, not enforcing it, dismantling it, getting rid of the protection bureau, that takes legislation. >> i totally understand that. ron, we're seeing financials rally sharply today. is there anything -- is there a lot that can happen regulatory wise as a result of this executive order that at least makes their lives easier and justifies what we're seeing? >> michelle, i think there is. once the administration has acted and given proper guidance to the executive branch agencies they can either suspend enforcement to these regulations or find a way to repeal them. i'm encouraged by what we've heard from the trump administration thus far. they recognize and you heard jack welch say we have a very

energized president, one who is encouraged to talk to business leaders and these discussions with business leaders need to continue but also with congress to get these regulations out of the way to improve innovation. >> so, wait -- >> for example, the vulker rule has unique -- the rule itself is very complicated. how it's written in the law, i don't know. but you hear an awful lot of people talking about the regulations that build like fat around the provisions of the law. >> yeah. >> that many in the financial service business say has adversary affected liquidity and that could actually be damaging at a time when the market is log jammed and needs liquidity? >> first of all, let me say -- make an editorial comment here. we have a great deal of amnesia when we start talking about financial market regulations and it's easy to forget the fact that we're still climbing out of a recession that was caused by a

bubble inflated by inadequate financial market oversight and underpriced risk. dodd/frank was there for a reason. the vulker rule was there because taxpayers are backing these banks who lost money. taxpayers are on the hook. i think we have to be mindful when talking about the glories of deregulating the financial sector. the big banks, i don't think, are having anywhere nearly like the kind of problems that were suggested in terms of implementing dodd/frank. i agree with you it's a complex rule. those banks have been doing extremely well. look at goldman, for example. i do think that there are smaller lending institutions that could use some help and probably some simplification. i think this whole discussion is based on a kind of amnesia about what happens when you deregulate financial markets to the rest of the economy. >> gentlemen, thank you very much. appreciate it. good conversation. we didn't even talk about the jobs report but it was pretty good. we'll get to that one next.

>> as michelle had mentioned, financials are flying on the heels of all this talk of rolling out dodd/frank. financials etf is soaring to the tune of 2%. having its best day since mid november did offer the kbe, bank stocks. shares of american express, stocks trading at more than a 52-week high. morgan stanley up 5%, a rare move second top performer on the s&p 500. news alert in the oils with jackie deangelis. the rigs are blossoming like summer lilies. >> yes, they are. baker hughes reported 17 oil rigs here in the united states to 583 total. that's the highest that we've seen since october of 2015. it's up from 116 at this time last year as well. oil prices are still trading a little bit higher here.

53.79 at this point. the support is coming from the talk about the iran sanctions. when the oil market hears that, they tend to take a step back and want a little bit more information. it could be worse than this, but it's not. i will say, this is the third weekly gain that oil is on track for. looks like we'll finish up about 1% for the week. back to you. >> thank you so much, jackie. could one of america's most iconic department stores soon go the way of the mounties? the latest on hudson bay's reported takeover bid of macy's. what new england patriots owner robert kraft has everyone in the cnbc newsroom talking about today. stick around to find out. ty iryo 'whi e e tr d i t aboutra. id*ere de on tmarked ty iryo 'whi e e tr d i t aboutra. fo thas get f erra wow't.

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welcome back to "power lunch." i'm melissa lee. things to consider when weighing whether this is a possibility. macy's cap is five times that of hudson bay and has $7.5 billion in debt. if this there is some sort of deal in the making, how would you see it playing out? >> hudson bay would likely

pursue a unique structure they have a very good track record of doing deals and monetizing real estate. mazy's has a lot of valuable real estate, as much as $a15 to $20 billion of real estate, over $50 a share. hudson's bay did the acquisition in germany, globally one of the biggest retail stores and did a joint structure which helped to highlight the real estate value. innovative, interesting way to do it. this deal has a lot of unique complexities in addition to the size issue and leverage, macy's is facing a declining comp stores sales business, slowing mall traffic as well as closing store stores. >> how could hudson bay do this without being dragged down by

all the negatives you just outlined? >> in structuring this deal, what needs to happen is looking for a third party. >> i'm sorry, oliver. we have to break way right now and go to jamie dimon coming out of the meeting at the white hous house. >> jamie dimon just came past our camera and said they had a nice conversation but will take a pass at talking with us. some of these ceos are trickling out. we're getting platitudes like we've seen from jamie dimon, saying active conversation, and those are the kinds of things people want to say without wanting to talk to us. so we'll keep an eye out for anybody else who emerges from the white house. >> productive meeting, the new no comment. >> it is. sorry to interrupt you mid sentence. how hudson bay could do this deal without taking on all the

negatives that macy's is contending with right now. >> what would need to happen is it would have to be structured with a joint venture and a third party would need to think about the kind of depth they want to offer. sale by lease transaction. melissa, the bottom line on your question is there are these problems in the core business. there's not an easy way to get through slowing mall traffic -- >> oliver, let's pretend i'm a macy's shareholder. what i'm hearing here today is that macy's is way too big a gulp for hudson bay. does that mean that this premium is wrong, that i'm not going to make this money i see happening today? can something happen where macy's shareholder receives a premium? >> hudson bay could look at

specific assets. something could happen. the bottom line from our research out today, we put it at a 25% chance given the complexity of the business model as well as structuring in terms of something happening. it's really highlighting yes, the stock is cheap, yes, there's real estate value. there should be people looking at this asset. there are great assets at the core. what about amazon acquiring macy's? we could transform the world by amazon's quest to being the number one in apparel. >> you have a herridng trying t swallow a whale in some way. >> exactly. >> whether this deal comes off

or not, we're hearing a lot about the value of the real estate macy's has. how do you get to a value on that if, among other things, a lot of that real estate is in malls where you say mall traffic is declining very quickly. how valuable is it? these are big box buildings, the one down on 7th avenue in herald square or macy's in new jersey or macy's -- how do you really value that? how valuable is that stuff anyway really? >> you bring up great points between a, b and c malls. some of them are key properties such as herald square, such as chicago. >> that was it. >> it's about extracting those. >> thanks, oliver. oliver chen, cowen. >> all right. oliver, thank you. up next, we'll talk credit

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the herring trying to swallow the whale, hudson bay being a smaller fish here. according to my sources on the street, financing is there. if they want to do it, they've got the backing. >> but not certain they want to do it? >> not certain they want to do it, yeah. >> to underscore, this would be doing a deal, meaning a full takeover of macy's? >> i can't confirm that. all i can say is financing for a deal is lined up. >> financing for a day deal. >> financing for a deal for macy's -- >> could be a joint venture or full takeover? >> obviously worki ining other angles. if they want to do it, it would be big but have the financing lined up. >> let's get you caught up on other stock headlines at this hour. lockheed martin, 90 f-35 fighter jets, at $8.5 billion. sean spicer was at the white house talking about that one before. let's look at the president now just moments ago.

>> today we're signing four principles for regulating financial system. what we're doing is returning lower income their control of --

>> she means that so much. >> chairman, i think we should hand the pen to a very special person. >> thank you. >> she earned it. >> thank you. i'm grateful. [ inaudible ] >> they're not behaving. >> all right, guys. thank you, guys. >> thank you. >> thanks, guys. >> the president has just signed, i guess, an executive order on one hand and memorandum on another. the one, the reason jeb enserling is there, basically

taking a look at the regulations that surround the dodd/frank legislation and looking for peeling back some of those regulations. the second one, the department of labor rule that was to have gone into effect now paused for, is it, 90 days? >> 180 days. >> 180 days, the so-called fiduciary rule which basically requires that retirement accounts, investment advisers with super vision over a client's retirement account put the client's interest ahead of their own interest. it is a controversial rule that sounds very innocent. why wouldn't an investment adviser want the clients interest to come ahead of theirs? >> therefore wasn't necessarily protecting them. >> it could also raise costs. think of the compliance that a lot of these brokers might have

to go through in terms of being raised, elevated to the standard of fiduciary. this rule was set to go into effect april this year. and many saying this would up end the retirement industry. >> all going to be very interested in this particular order, executive order outlining the core principles around u.s. financial regulation, the way they think about it. super important reading for everybody on wall street to know what path they're going to take and really delineate where the administration wants to go based on -- really written down on paper as opposed to all the talk we heard. >> this is why you have to watch cnbc. not a cheap plug for the network but the easier or starkier headlines will be trump reverses rule that basically permits people to kind of screw over their clients. that's not the case at all. to melissa's point, a lot of these advisers we talk to, know personally and talk to, they were scared because it was going to hold them to a standard

legally that they don't feel would be fair because they could theoretically be sued for everything. >> for instance, if you had a retirement account and wanted to simply buy shares of "x" etf, whoever was dealing with that account would have to be the level of a fiduciary even though that was a simple transaction. gary cohn's point was give consumers the choice, let them choose the level of service they want. they have to be aware of what they're getting but let them choose. that was the key driver of this. >> one thing is for certain. nothing is certain under president trump. market enjoying a nice rally today. there's been confusion over the president's pro business stand versus a lot of his protectionist intentions. what do you do with your money in this environment? that discussion, next. what cricakiik bats $14.

hi, everybody. i'm sue herera. here is your cnbc news update at this hour. senior administration officials telling reuters sanctions imposed against iran were only

initial steps in response to iranian provocative behavior, the treasury sanctioned 13 individuals and 12 entities under its iran sanctions authority in response to iran's recent missile test. a knife-wielding man shouting "god great" in arabic attacked french soldiers on patrol near the louvre museum in paris. soldiers tried to fight off the attacker before then opening fire, shooting him five times. both a soldier and attacker were then taken to a local hospital. nissan recalls 363,000 altimas because the doors might open if a rear window is lowered. 2015 through 2017 models. most of the vehicles are located in the u.s. and canada. tiger woods has withdrawn from the dubai desert classic after suffering back spasms overnight. his agent saying, however, it was not related to the back issues and surgeries that sidelined woods for more than a year. he shot a 5 over par 77 in the

first round. that's the news update this hour. ty, back to you. >> sue, thank you very much. we have a rapid update on the economy coming up. let's get to steve liesman. steve? >> first look at the first quarter. we got that from the -- some of the data that's come in this week. it's tracking at 2.1, touch better than the fourth quarter. you can see tracking at 2%. no change there on the look at the first quarter. the fourth quarter, though, up this morning about a tenth from the factory orders that we got. this was a strange jobs report today that we beat estimates by a long way. but it's led the market to almost completely price out the chance of a fed rate hike. stranger still since it was followed up by an ism report that also topped expectations. here is the report. 227, 175. more people coming into the workforce, increase in the labor participation rate. but the average hourly earnings is what disappointed. it was up just 0.1%.

look how the two-year traded on this and has been trading all day. it's coming back a little bit. punched down to 118 and now up just a tick at 119. but, really, what happened is the priced out the probability of a january hike to just about 9% -- sorry, march hike to just about 9%. it had been north of 17% before the jobs number. john riley says the market is wrong to so decisively price out a march hike and most economist s don't think the u.s. economy will sustain job growth at this rate, more an 150 to 175,000, michelle. >> yep. all right. thank you for that rundown, steve, with a rapid update. stocks enjoying a nice rally today. dow back up above 20,000 thanks in part to that jobs report steve was talking about. what's next? pause or more gains? joining us now morgan stanley investment management and cnbc contributor ron insana.

financials are your favorite sector. they had been down year to date and today happens with the executive order where they want to reexamine core regulation, financial regulation. financials have rallied so much today. how much more can they go? >> it's been the worst performing sector the last eight years and rallies for two months and then it's done? i think the earnings leverage for these companies in terms of better loan growth, less regulation, less taxes and these companies have been cutting costs for eight years. earnings power is very substantial. i don't think you sell after a two-month rally. i think you had a breather after a big move in december. >> great point earlier in the show. dodd/frank is an act of law. it takes congressional action to move it. we have this executive action which would suggest regulatory forbearance. how much can that help the banks right now?

>> a lot. they all set up for the fiduciary forbearance laws. everybody has been acting as if what comes in april will be the state of play. compliance cost also drop dra dramatic dramatically. and portions of dodd/frank can be taken in budget reconciliation. they can pretty strangle that baby in the crib, if you will. >> oh, ron. >> it's an expression. but, i mean, you know -- >> not really. >> yeah, it is. >> an awful one. >> baby in a bath sometimes they both get thrown out together. >> they can knock this thing out pretty fast. and i think net/net, when you look down the road -- >> but fiduciary rule, i haus hate using that phrase. >> it's gone. it's going to go away. >> it looks that way. >> everything i've heard is that it's gone. >> that's a very separate thing from dodd/frank. >> absolutely. >> not even part of it. >> but there are ways to mitigate the impact of dodd/frank even before you

change legislation. >> in terms of financials i feel like everybody and their brother comes on the air and says be in financials. latest week bank of america had interesting data saying the large est inflows into financia in 11 weeks. people are still piling in. is it true that there is -- there's a thought in the market that institutions are under invested. >> correct. >> in financials. >> i think they're under invested in value stocks, overweight in growth stocks and under weight in value. i get this question all the time. when is the right time to buy the big growth stocks? when is the right time? they've pulled back. i think because the last eight years has all been about sell the value stocks whenever they've rallied and buy growth stocks every time they pull back, that's what people have been grained into. >> you're saying these value stocks, financials, are now growth stocks. >> yes, absolutely. there's a lot of earnings. i don't think it's just regulatory. i just don't think it's regulatory. ooh think there's meaningful

changes going on. >> would buying these stocks merely because of these proposed changes -- let's be clear. they are proposals. executive orders are things that the president would like to have happen, not ordering them to happen. >> fiduciary rule is a department of labor -- >> they're going to review it. but i'm saying there are other people in place. that aside, would you buy these stocks merely because the regulatory overhang, the extra cost is gone or because they can also then do some things that they hadn't maybe been able to? >> and i think that's key. do they lessen capital requirements, lower liquid levels, do they allow for an increase in leverage? >> definition of liquidity would make life easier. >> exactly. room for margin improvement if, indeed, the economy continues to accelerate. >> you're positive on financials? >> absolutely. yeah, yeah, yeah. >> value stocks tend to outperform for 2 1/2 years. we're 11 months into it.

we've only had half the return. i think that's pretty significant. >> gentlemen, thank you. >> ron, good to see you. >> still ahead, modern medicine super bowl edition. new blood test service for elite athletes and they don't even have to step foot into a doctor's office to get it. meg tirrell tried it, too. she's a performance athlete. she joins us with the story next. first to mr. santelli acme for the bond report. >> intra-day ten shows you everything you need to know. parts that steve outlined that were weaker on this report and we gave up ground. we have most of it back. we're basically unchanged on the day. open it up to a week. we're down one basis point on the week because that separates yesterday's 47 close. last friday's 248 close. 10 minus bunds, look at that chart. it's holding at 200. why should you care about this? because the dollar tracks it very tightly. the dollar index chart starting on the same date.

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, i'girl kn, gogo qu welcome back. time now for our continuing series on modern medicine. and this is the super bowl edition. blood tests are not just for the doctor's office anymore. more and more, elite athletes are beginning to use them. check this out. >> new york giants linebacker mark herzlich.

>> gets his blood tested four times a year by quest diagnostics in a program called blueprint for athletes. it examines dozens of markers in the blood for vitamin levels to food sensitivities to -- >> we look at things like creatinine. we're concerned about hydration. >> quest is a sponsor of the giants. movement beyond wearable fitness trackers. >> just one more data set that an athlete can use to make an informed decision, whether you're a professional football player like the new york giants or weekend warrior who is interested in racing. >> a key question, how useful are the results? nyu's dr. dennis cardone says good training and nutrition should be enough for most. >> the body is such a great efficient mechanism that it

doesn't need to be monitored as closely as that. it takes care of many of these things all by itself. >> the giants say that level of detail about each player's health over time improves their training and recovery. for mark herzlich it's about more than staying at the top of his game. cancer survivor, getting such frequent data on his blood cell counts helps put his mind at ease. >> let's get more on this amazing technology with meg tirrell. it was her work. we're getting to the point now do you see some point. >> and have it be less expensive, you mean? >> yeah. >> whole move from direct testing. you can do 23 and me for a couple of hours. i talked to dennis cardone who said as long as you're eating right, exercising well, that should be enough.

rutgers, who works with quest. said it's not just about enough for elite athletes but having this data and improving it over time. >> let's say you want to go do this test. are there places that do this commercially? >> quest diagnostics. one of the biggest lab testing in the united states. you can do it direct to consumers. who are not going through a doctor's office. >> and it will tell me all this stuff, what to eat, what not to eat? how does he know not to eat peanuts? >> he did a test of sensitiiti y sensitivities to food allergens. he cut those out and gets more energy in his games. somebody like dr. dennis cardone, maybe you shouldn't be eating peanut butter and jelly sandwiches an hour before game time anyway regardless of if you're allergic to peanuts. giants and rutgers who find it

very helpful. >> cool. >> what if it said no tomatoes for you? >> big problem. >> maybe better not to know. countdown to the super bowl is on. patriots' robert kraft isn't just rooting for his own team. >> i love cnbc. that's how i get educated on what i have to know about the financial world. >> that's right. robert kraft is on team cnb as well. next, heading live to houston, the site of super bowl li. don't go anywhere. power lunch is back in two.

super bowl li between the new england patriots and atlanta falcons expected to be one of the most watched tv events of this year. it's been a rough season for the nfl in terms of tv viewership. overall it was down 8% versus 2015. sunday night football, monday night football and both the cbs and fox weekly programs saw ratings decline as well. so, is this an anomaly or real concern for the nfl?

george pine is founder and ceo of bruins sports capital and former img president of sports and entertainment. george, welcome. good to have you with us. >> great to be here. >> to you see what has happened with the nfl ratings as a long-term beginning of something not so good or an anomaly that had to do with 2016 particularly? >> right now it's too early to draw any conclusions. i think the presidential election had, no doubt, had a big impact. you saw the same dynamic when bush and gore had their elections. i think that had an impact and also the early season match-ups were not what they used to be. pa peyton manning wasn't there. they finished strong down 8%. on thanksgiving day, redskins played the cowboys, most watched game in the history of fox network and 107 million to 115

million people watch the game this weekend. everybody would love to have the the nfl has. one stat i find interesting, 88 of the top 100 shows watched on television are sporting events, 60 of those are nfl games even more if the olympics weren't in that count and 7 of the top 10 shows are nfl games, three of those other ones being the presidential debates. the nfl is a very valuable and enviable position. >> if you were advising -- maybe you are advising commissioner goodell and the ownerships of the teams. what would you be telling them about how to shore up, if it needs to be shored up, their product for television consumption. how would you be telling them to be prepared for the changes that are coming in the tv business? >> well, i think one thing if you listen to commissioner goodell and the owners, they want to be the best they possibly can be. they want to lead and be

innovative. and obviously the channels of distribution are changing. so you need to be creative when it comes to social and digital media, over-the-top options. you want to see them lead in that direction and saw it again this year with twitter. a year ago you saw them test with yahoo!. i think they've been very creative innovator and they'll lead. >> now i hear boys complaining about it, too. the games take too long. >> agree. >> there's too many delays. enough already! >> well, you know, again, you're going to have 110 million people watch this weekend. i think you're going to see a terrific game and saw a ratings record. cowboys/redskins was the most watched game in the history of fox broadcasting. things can always be better. but things are pretty good right now. >> only thing wrong with that redskins/cowboys game, my team didn't win. george, thank you very much. >> my pleasure. enjoy the game.

>> it is a commercial with a game trapped inside. >> yeah. >> i agree with you. >> it's too slow. the game is too slow. >> too many penalties, too many breaks. >> ten seconds. read fast. players may know how to play football but what do they know about stocks and the economy? we're putting them to the test, heading back out to houston, still ahead. three big things about snapchat that will surprise you. s firsstinde te as ach. s t lot of peostilbu the be.segies at jt t ack

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welcome to the second hour of "power lunch." i'm melissa lee. two hours till the closing bell. president trump meeting with business executives at the white house, signing executive orders, rolling back financial regulation. and that is giving a boost to financial stocks, pushing the dow nicely higher and back above that 20,000 mark. another big thing happening this weekend, super bowl in houston. we know the players make a lot

of money but how much to they know about it? second hour of "power lunch" starts right now. >> and, folks, check out some of the movers in today's rally, as melissa just said, carrying the dow above 20 grand again. macy's higher for the second straight day. hudson bay could make a bid for the company sources say. amazon down big. sales growth disappointing investors even though it's aws business, the services side, is booming. chipotle falling as well. it beat earnings but revenue was a little light. and the stock's comeback has hit a roadblock today. bri? >> for more on today's big game, let's go now to the new york stock exchange and bob pisani. dow 20,000 once again, bob, in the rear view mirror. >> and much of that is because of financials today. president trump signing that order instituting a pause in the department of labor's retirement advice. many asset managers, managers,

moving. a little bit of a cloud over their legal requirements and whether they could get sued under this rule that might have come in. president put a pause on that. invesco, legg mason, t. rowe price. insurers sell annuities as well. voya, american equity, metlife, rallying to the upside today. not as many new highs on the s&p as you might think. a few in the bank. us bancorp, pnc, jp morgan just within a hair of 52-week high and wells fargo, same thing. one big relief outside the financials is to see the transports comfortably in the green. dow transports up today after a horrible week. ryder brought down all the truckers, united parcel service

brought down, fedex was down. still down 9%. ryder down 6. american airlines down 6 or 7% even union pacific, not a lot of news in the railroads but that group down as well. nice to see them in the green. gives you an idea of the strength of the rally. 4-1. >> thank you very much. president trump signing executive orders on financial regulations this afternoon. eamon javers has the story. >> what the president signed today, one was an executive order, the other was a presidential memorandum. the first one instructed the acting secretary of treasury in this particular case to go back and review the entire dodd/frank law and look for ways to roll back or trim some of the regulations. the trump administration feeling very much it was ownerous in some ways might have been unconstitutional. presidential memorandum was a different issue, on the

so-called fiduciary rule, instructing the department of labor to hold off on imposing that rule which is to go into place later this spring. presumably when the trump administration gets their person in to the department of labor that rule will go away all together. right now it's just a review and delay. here is the president talking, just as he signed those two orders a while ago at the white house. >> today we're assigning core principles for regulating the united states financial system. >> now, guys, we're outside the white house on 17th street. some of the ceos there for this meeting which began at 10:00 this morning are still in there. we're expecting that some of them will come out at some point. but we've been going down our little checklist here and it appears that a small group may still be in the white house, either meeting with the president or other aides. of course, it's always possible that they snuck them out another

door and we're wasting our time on 17th street. >> try to stay warm as you wait, eamon. thank you very much. proposed border adjustment tax, part of corporate tax reform, imports would be taxed, exports would not be taxed. on one side supporters of that proposal have formed the american made coalition, reportedly consisting of companies like boeing, general electric, oracle. on the other side is americans for affordable products, macy's, walmart and nichlt ke. how can you pass a pro business policy when businesses are so split on the issue? kevin brady is the chief writer of the proposed tax chairman of the house ways and means committee. lots of division over this. first, though, i want to ask you about your meeting with president trump yesterday. four members of congress in there to talk to him. several weeks ago he told the journal that he thought border

swruchlt was too complicated. has he changed his tune based on your meeting with him yesterday? >> i'll let him address that question but it seems to me that he understands exactly why americans are not competitive and understands our competitors all take their vat tax, slap it on ours, as our products go into theirs. america is one of the few countries that don't. made in america products are at a huge disadvantage here. we are, abroad as well. he understands the principle of equal taxation in the u.s., doesn't matter where the products are developed, doesn't matter if the u.s. or foreign company. equal taxation. >> one week ago today, absolutely 100% supportive of border adjustability. do you think peter navarro represents trump's team in

general? >> one, i'm very excited to work with peter navarro, in that meeting with president trump and vice president pence as well. having great discussions on how we level the playing field for america again, leap frog into the front. i'm encouraged to hear those types of discussions. >> i'm not so sure. listen to what gary cohn said today. >> we're open to everything. we're not excluding everything. but i'm not telling you we're including that. it is one of the options on the table. you should not take it from me that that's the option we're going with. i'm not going to exclude that option. >> so, chairman brady, gary cohn did everything possible to not specifically endorse the border adjustment tax. >> give the trump economic team -- and, by the way, they're a terrific team put together, just as this tax reform blueprint is as well. don't take one provision out. when you combine the lower rates, lowest in modern history, the full and unlimit ed expense,

no longer taxing worldwide and finally border adjusting our taxes and not taxing made in america, that's what make this is so pro growth. that's why all these elements will be contained, i believe, in the ultimate tax reform. >> congressman? >> i'm sorry. go ahead. >> i understand you don't want to speak for anybody in the administration but you're the guy selling the plan. from your perspective, are you making leeway? if you had to guess right now where do you think you are in terms of selling that plan, the border adjustment tax? >> i'm very encouraged by these discussions. visiting with the law marks in washington as well, you know, they never really dreamed we would go this bold. most people thought we would never actually confront our competitors and put in place a tax system that matches theirs, which this does. so, while this is common around the world, it is new to the

united states. we're having good, healthy discussions about this. and, frankly, these steps, these discussions we're having right now ultimately will be one of the reasons we're going to do this tax reform this year. >> something that brian, i know, has followed closely. you're from texas, right? from houston? >> yes, sir. >> hope you're going to the super bowl this weekend. >> no. >> you're busy, man. forgive you if you're not. how would a border adjustment tax affect the domestic petroleum business, vis-a-vis foreign suppliers of oil? >> two things. couple of key things. one, obviously, u.s. energy, made in america will be taxed at the same rate as foreign oil, whether it's from canada, mexico or the middle east. that's important. secondly, a lot of our refiners and producers are export driven. for the first time they'll be able to compete on a level playing field around the world as well. we're listening to predominantly import refiners who want to know

how this would work. they want to avoid any tax spike or price spike. so we're engaged with them because i'm convinced that, one, we can design this provision and transition it in a way to many of those concerns. strengthen our economy, exports. the dollar will appreciate. that's going to address the balance on the imports. >> so there would be some adjustment to the border adjustment tax with respect to those refiners in the united states that refined imported oil, am i understanding? >> not necessarily. >> not necessarily? >> we're listening to their concerns. they're engaged with me on our tax team as to how you would get the design right, transition, in effect, the phase-in of this right as well. what we want to do is axccelerae all the growth aspects, leap frog to the front and then address some of the bold changes

we're proposing in just a good, positive way. i'm confident we can, by the way. >> congressman, the aforementioned brian. what industry have you heard from the most that hates the idea? >> are you asking me? >> yes, sir. >> i'm sorry. >> which industries are calling your office and screaming, where you have to keep the phone away from your ear or they're using all caps in e-mails? who hates it? >> we hear something different. washington, as you know, because the tax code is complex, they all like their special provisions. we understand that. back home, we get a much different view. in fact a number of people are saying hold your ground. taxes equally in america is exactly the right thing you need to do. go bold as you need to go. >> let me ask you a different way. are the retailers angry at you, congressman? >> well, i don't know angry. they're weighing in, in a major

way. we welcome this discussion. look, these are big, bold tax ideas and we want them at the table with us. >> they never say they're angry, congressman. they say they want to educate you, right? isn't that what they say? >> well, the education level has increased. let me say that. >> also remind you how much they donated? >> i'll tell you what. those domestic businesses, local businesses that are paying 35% tax rate are at a huge disadvantage today. those who want to export more around the world, they're also weighing in as well in a very positive way. >> president trump signing executive order to start looking at financial regulation in the united states. says he wants to do a number on dodd/frank. will you be able to repeal dodd/frank? >> i certainly hope so, led by jeb henserling and others. that law has done so much damage at the local level. it's hard to quantify it all.

i'm encouraged by that. by the way, number of things president trump has done on the regulatory side. you never know if the tax regulations are holding them back. we have to address both of them. >> kevin brady, ways and means. a lot more done. lot more still to do ahead. live reaction from iran and the president's plan for more sanctions. plus snap chat filing to go public, could be the biggest ipo in years. what you need to know. forget the game on sunday. jane wells found out just how much the pats and falcons players know about the marks and the economy, and one stock having a very ugg-ly day. stuck around for much more power lunch. door?ed,

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another big headline today, snap chat filing for a massive public offering that would value the company between $20 and $25 billion. since it is our job, not yours to read through boring financial documents here are the tle things you need to know about

snap chat's ipo to sound smart tonight. as hot as the company is it lost more than $500 million last year and says could never become profitable. two, part of their plan is snooping on you. it talks about an ad campaign that follows users phones to wendy's after they looked at a snap to know that the ad campaign worked and, three, it gives unprecedent, nearly full control to a few founders. almost operating like a private company. let's bring in alexandra switch. alexandra, it's fair to say, is it is it not, that snap chat's ipo, given the really tight secretive control to a few people would be an unprecedented ipo in america? >> it certainly valley and tech companies believe founder being a sage. it's basically -- ceo and

co-founder has the best ideas and should not have to listen to any shareholders. that is how he has been running the company while it's been private. even board members don't know what the full plan is. >> you're out there, talking to venture capitalists all the time. they can say all they want if they're getting rich. they're going to say nice things, right? what are people saying about a company that's based in l.a., very, very secretive, these weird controls, may never make money. what are people privately saying about snap chat? >> i think people are hoping -- a lot of the investors who have invested in snap chat invested in goog sle and facebook. they are hoping against hope this could look something like that home run. i think that's extremely optimistic. the valuation given where the company is at, they might have $1 billion in revenue this year. we'll see. it's really unclear their way

forward. investors here are really hopeful. >> alexandra, i would think from the investor base that snap might have a twitter problem. the numbers, if you look at them, are eerily reminiscent of when twitter went public. user growth is slowing, masses are mounting. in the s1 the first line of the s1 is snap is a camera company which then harkens back to go pro. how are investors receiving this in terms of potential buyers into this ipo? >> i think the description of snap chat being a camera company, they're deliberately trying to position themselves not as the next twitter and not as a facebook either. they're trying to say we're creating a new path for ourselves and very interested in using the smart phone's camera, going to do hardware, too. it's a little bit of marketing, too. i think your question is a really good one where linkedin, twitter, facebook, all these

public companies have trained wall street investors to pay attention to user growth. evan spiegel is going to try to say don't pay attention to user growth but engagement time. smaller base of users but they're highly engaged, all in america, advertising market. kind of trust us. we'll be able to create a large business. you don't need to pay attention to the growth numbers. >> alexandra, a graphic showed they had about $500 million in one of the most recent years. you say maybe a billion dollars. how can this company not be making money? it does not sound like it really fits the bill for a capital intensive outfit. >> so they have around 2,000 employees. you know, they're investing in this new -- they have a sp spectacle of $130 sunglasses where people can record video on their eye level. they're trying to stay ahead of facebook. the difficulty is that facebook

has the ability to do that, too, and has shown that they're willing to relentlessly clone features. they did it with stories. snap chat has this feature where people share something. facebook did the exact same thing and even called it stories on instagram. that already hurt snap chat's user growth. they're trying to stay ahead of the competition. i think it will be difficult to do so. >> alexandra suich, pleasure as always. >> thanks for having me. one thing i will say, facebook is like your family feed. instagram is a photo album. twitter is like news distribution and anger management platform. snap chat is fun. it's how the kids communicate. >> melissa, you look so cute. >> these are some of the -- if you never used snap chat you can use filters that do all kinds of crazy stuff with your face. you can swap faces, which i did with john earlier. >> this is disgusting.

>> really useful. >> this is worth $25 billion. >> the stories where you can look at like short news features and stuff, using your video, by the way. >> we heard you like studio 54. >> no. can you bring those back up? in the audience vote i think melissa's is the best. >> i look like an anime, like a cartoon. >> michelle is like a wood sprite. >> donald trump about to get on air force one, going down to mar-a-lago for a weekend of meetings. there we go. >> white house south they call it. his club. all right. credit cards, underwear in one stock. >> that's a transition right there. >> one stock making you about to say ugg in the good, the bad and the ugly. plus super bowl li taking place in houston on sunday. we'll talk to tilman fertitta,

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volume growth. its customers are spending more money. all the financials getting a boost from president trump's executive order designed to reduce financial regulation, stock higher by 5%. the bad, hanes brand. missed earnings for the fourth quarter. underwear maker worse than expected guidance for 2017. lot of people going commando? i don't know. ugly day for deckers outdoor. company behind uggs is getting crushed after earnings missed, offering a weak outlook as well. lower by 17%. tyler? i don't want to know. >> what, do i wear uggs. >> or underwear? >> at the same time? and only? oh, i like it. >> part of the naked cowboy. a live report from iran, as the trump administration slaps that country with new sanctions and not from iran, tilman

fertitta, the billion dollar buyer will join us to talk trump, taxes and football from his hometown of houston. oil about to close for the week. we'll bring you that closing number when power lunch returns. gettyo q y doi? wa.a you owhat i omtironnuapercge yid gettyo q y doi? find ront is is literaroyour auapercge yid gettyo q y doi? find ront , ttleat'hatear s uarter ing stops ing righghur cal. doh

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hi, everybody. i'm sue herera. senior iranian cleric says iran will not suspend its nuclear missile program after the trump administration hit iran with new sanctions. he ayotollah said it does not violate the new deal. attack at the louvre museum. knife-wielding man attacked several soldiers with that knife before being shot outside the french museum. drug kingpin joaquin "el chapo" guzman appeared in federal court in brooklyn, his lawyers arguing that his new york city jail restrictions are too strict. the judge did not comment on those conditions, though. el chapo has pled not guilty to drug trafficking charges. u.s. navy says good-bye to the u.s.s. enterprise.

a decommissioning ceremony on the deck of the ship. it was in service from 1961 to 2012. it has been inactive since 2012. that's the news update this hour. back to you, melissa. >> thank you, sue herera. 90 minutes from the closing bell. the dow getting up above 20,000. financials are carrying the dow higher, visa, american express, goldman sachs, jp morgan, the biggest gainers today. let's get to jackie deangelis at the cnbc commodity desk. >> prices closing under $54 again. probably the 20th time i've said that over the last few weeks, really stuck in this tight range here, half a percent gain on the day and more than 1% on the week. iran sanctions are an issue for the oil market. they don't pertain directly to oil production at this point. what the market worries about is that president trump is taking a

tough stance on iran. saudi arabia raising its prices in asia, more in accordance with the opec agreement. if they're taking their production down, raising their prices. they're very committed to this. regarding the iran sanctions, the main reason we saw oil prices fall is because that oil came off the market. if for some reason later in the year it was to come back off the market, you could see these prices move higher. some analysts are telling me possibly the second half of the year even $75 a barrel. back to you. >> thank you very much, jacky. let's get reaction from iran to those new sanctions. ali aruzzi is live in tehran. ali? >> reporter: hello, michelle. that's right. it's very unusual at this time of a night on a friday night to get a response from iranian foreign ministry. they've weighed in on these sanctions pretty quickly and said iran is to impose restrictions on u.s. individuals and entities helping regional terrorist groups in retaliation

to the u.s. sanctions. they said iran -- iran says new u.s. sanctions is also a violation of the commitments and of the u.n. security council resolution that endorsed the deal. tough words out of iran. when they tested this missile, the intent was to measure president trump's response and they got a big response from it. now there's a huge sense of foreboding in iran. they don't know what the future will hold with president trump. it was interesting to note that when he initially got elected in, iranians thought he's a businessman. this is somebody we can do business with. things aren't going to be so bad. when he selected his security team, defense secretary mattis and flynn, et cetera, the iranians were shaking in their boots here. they knew this was going to be a whole new era. what's also made things very undetermined were all the new business deals they've

approached on. boeing wans to come here. airbus wants to come here. they thought it would be a new era of business for iran. great uncertainty is being injected into the iranian marketplace with trump right now and don't know how to go forward here. german defense minister said that iran's missile test was a violation and this is a country that's been planning to invest a lot of money into iran recently. they said huge trade delegations to iran to see what deals they can make here. they're even weighing in on this missile program. the future looks very uncertain here. back to you guys. >> i'll bet it does, ali. thank you very much. there was a lot of talk that today was just the beginning of what president trump plans to do when it comes to iran. guys? >> michelle, thanks. turning now to sunday's big game and the economic impact on the city of houston, hosting the super bowl now for the third time. tilman frititta is owner of

landry's restaurants. great to have you there. how important is a super bowl to a town like houston? what amount of money does it bring in and how much business do you capture? >> it's amazing. it brings in about $300 million. what the super bowl does more than anything else, it gets cities off their behind and it makes them do things like if it weren't for the super bowl, we wouldn't have totally remodeled our convention center. we wouldn't have created a restaurant row or built a few thousand hotel rooms and totally help remodernize the downtown area. so, i've watched this have three out of the 40 years and one of them i was barely old enough to watch. what's so good about it, it makes cities do something. and i think that's probably -- you don't make enough money over a week or three days but it's the big picture that it makes

cities get off their behinds. >> the stuff they do ahead of time to get ready even more than the money they make on the week of. let's talk about your businesses and the restaurant business nationally. on a scale of one to ten, with ten being very strong, where would you put it right now? >> i would say no more than a five. what's happening with the restaurant industry right now -- and last year was the worst year since 2010. and the fourth quarter was the worst quarter since 2009. >> wow! >> and i think with all -- which is not good, okay? but what's happening is that the prices in the grocery store are so cheap right now, people are seeing that they can go to the grocery store. there's also all this order and the ingredients are there the next day to cook homecooked meals and the home cook takeout

from your grocery stores and the labor pressure. these states don't realize as they continue to raise this minimum wage and not get tip credit to $12, $15, $16 an hour that you're having to raise your prices so much that it's starting to get where people can't afford to eat out like they used to. so it's definitely a problem. and we need to conquer it. i'm hoping that the ceo roundtable does something about it. >> tilman, let's stay on that. this is brian. you and i talked about this a few times. is there a difference in psychology -- let's today a billion is $100. let's say it's $75, very generous, you leave a $25 tip and come out at $100. is there a difference the way people perceive it if the menu prices equal $100? even though it ultimately will cost them the same amount of

money? >> it does cost them the same amount of money but it does hurt when you, all of a sudden, have gone out to dinner and haven't gone any place fancy today and you've spent $100. i think we've talked about this before, that you got people like netflix spending $6 billion on content this year and people would rather order something in or cook at home and binge watch all these great shows coming out. it's definitely having a huge effect on the restaurant industry. people are spending money out there. even though, you know, cars and everything else is starting to slow down a little bit, the restaurant business right now seems to be taking it harder than anybody else. >> are you seeing a pickup from the business consumer, those who are on an expense account? >> you know, i can tell you this. you're starting to feel the vibe in houston with oil now back in the mid 50s. and, you know, it's amazing what we can do after we've been there a few years and now technology

is letting us make money and oil companies pay our bills in the 50s, where they couldn't have done that three years ago before that happened. but, you know, you saw the recount today. and that's just a huge positive for the houston area. and anywhere in the south, louisiana, oklahoma, midland, texas, where you have so much energy business happening. >> what if you did what some restauranteurs have done and got away from giving tips at all? you just built it into the price. does that help you, hurt you? bad idea? >> i think that danny has already pulled that back and realized it doesn't work. because what's going to happen is you're not going to keep the best waiters. you got to remember at danny's high-end restaurants and my high-end restaurants, waiters make $500, $600 a night, many nights, okay? so a waiter is not going to let us take a piece of the cake when they know that they can make

that money. >> right. >> and you know, at a mastro's on a normal night, our tipout is $4,000 to $6,000 that the waiters are walking out with that night for 12 to 15 waiters. >> and that's cash money, cash in their pocket. >> right. that is cash in their pocket. >> i'm sure they report every penny of it. >> let's talk about the ball game. you don't have to answer that. let's talk about the ball game. you got a pick? >> you know, i love the falcons. it's great that they're going to be there. but i'm a tom brady fan. we do some stuff with tom. i just -- tom wants this super bowl more than anything he has ever wanted. he wants the commissioner to have to hand him that trophy. so, he's going out for blood. and i think with everything that happened with deflate gate and everything, it leans me to pick new england. >> all right.

tilman, thanks. good to see you. >> good seeing you guys. thank you. >> you bet. >> you can binge watch cnbc's billion dollar buyer but order food from some of his restaurants at 10:00 pm eastern tuesday. >> i don't know if he can hear me. if the patriots win he should put avocado ice cream which apparently is the treat tom brady -- he has this insane diet. >> he eats avocado ice cream? >> millett, air. >> air? >> no strawberries, no meats except lean salmon. anyway, i couldn't do it. financials ral lig todlying tod. should you bet on banks? "trading nation" is next. across tte mion. ing ththom

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10% decline buying opportunity. price cuts incremental pressure on td. but cs says not meaningful impact given the sticky nature. in other words people don't usually go because of the cuts. last major price cut in 2010, no discernible impact on growth rates or share shifts. >> all right. i've got two small cap calls for you today. it's a friday treat. you're welcome. first up, estherline. suntrust pounded the table after solid earnings, reiterated buy earning but raised targets saying the company is turning the corner, operational challenges associated with the the multiyear turn around are in the rear view mirror and margin is coming back into focus. their target goes to 108. 14% more upside after today's 10% gain. >> raymond james downgrading go pro. results are weak. raymond james' expectations.

going to 2017 is a concern and shares will likely be under pressure until some sort of stabilization. down 12%. >> ugly day there. ticker is ason. started outperforming $22 target. it's a $13 stock. nearly double. analysts say investors are so focused on the drug trial results, they've started trials for dementia drug. second small cap call of the day. street talk out, trading nation in. financial sectors surging today as the stocks are set for their best day since november. still time to buy the bank? stacey gil bechlt rt, and mark

templar. waffled today. good day. what's your view on the sector? >> obviously, the banks are come a long way. best performing sector in 2016, financial sector. there's a lot of optimism that's already baked in, whether it's reduce regulation, rising interest rates or strong economic growth. but when you look at the financial sector in general, it still has the second lowest pe of all sectors. there's still plenty of room to run. we do think that financials are going to be one of the biggest beneficiaries of the trump presidency. we like the banks. however, if we had to play this sector, we would prefer the consumer finance stocks. >> such as? quickly? >> what's that? >> such as? give us an idea what you mean. >> discover, capitol one. the credit card companies. so we think that there's -- that definitely is a play on the strong consumer. consumer confidence is at peak

levels. >> one of the good people at s susquehanna saying about the banks? >> i would agree with mark, banks up 25% since the trump election. clearly big winners there. product like kre. this has been a huge outperformer. we would make the argument that the market has shifted to be a more mutual sentiment here. from a valuation perspective, regional analyst would argue the same thing. if anything, if anyone has been involved in these names we like looking for protection. buying some of the protective versus selling those upside calls to protect from a pullback. in the underlying stocks that make up the basket, underlying riders who enjoy the stock here but see upside limited and we could argue back from a valuation side. >> mark teper says he likes the discover and capital ones of the world a little bit better.

thank you, mark and stacey. go to our website tradingnation.cnbc.com. tyler? super bowl tradition on cnbc. we quiz the players on how much they know about the markets and who better to do it than jane wells, live in houston. jane? >> tyler, there are few things an nfl player fears more than an older woman with a cnbc flag running towards him. and we threw in some questions about trump when we come back. >> what important number did the dow break through? >> was it 20,000 or 2,000? >> should have stuck with my gut there instead of second guessing it.

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we know nfl players make a lot of money and we also know some of them aren't very good at

keeping it, so what do the players in this year's super bowl know about money and the markets? we sent the one and only jane wells of houston to find out. >> reporter: it's a cnbc super bowl tradition and the athletes never disappoint. they are such good sports as we quiz them about the dow, apple, trump and yellen. >> what big benchmark did the dow recently go through, what number? >> oh, shoot, i don't know. >> 20,000. >> did it get over 20,000? >> we were down -- we were below 20 right now. >> i'm going to go with 34. >> i have no clue. i know we have practice this morning. >> who's janet yellen. >> you. >> what was the name again? >> janet yellen. >> take a drink if you need it. >> which company's more valuable, apple or amazon. >> i go with apple. >> i have some apple stocks so hopefully apple. >> amazon/apple. good save. >> yeah. >> is trump good or bad for the

stock market? there's no right or wrong answer. >> i'm not answering that one. >> pass. >> i defer. >> how many times is the fed going to try to raise rates this year? >> three. >> was that a guess? >> no. yeah, it was. >> all right. that was falcons punter matt bosh, pretty good guess. we asked who's elon musk. half the guys knew it, oh, the tesla guy who wants to go to mars. the punter was the only guy who knew what the punter was. >> let us say you will never be confused with janet yellen ever, ever, ever, okay? >> i don't want to dis her, but i am going to say thank you. >> you're definitely taller. >> yeah, there we go. i'm taller. that was julian edelman who said his best investment he ever made was a commercial investment and

the worst one he made was a hedge fund. julian edelman who could be a big player. >> i think he was an mvp in one of the years. >> headline is jane found someone she's taller than. that's the breaking news. >> oh, my gosh, you and your thing about height, brian sullivan. >> hugs. i'm going to snap chat you later. >> check please is next. jane, have a great weekend. see ya. check please, coming up. i or arading. so wh e*ere uerade trarade rm tt has s l t! bis rypopoananto 'why e*tradmo

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check please. >> oh, it's such a rich table here today. you might wonder why we're all wearing red, one way or another. it is to celebrate women's heart health. american heart association. brian, would you like to share what you just said? why you're so -- >> it was actually very good. >> it is a good line. >> we were figuring out how to say it best. promote heart health, a great cause. >> among women. >> i said to promote heart health, heart healthy, blah, blah, blah. that's perfect. you should do the little ad lib. i should do it, i've broken so many hearts. >> it was -- >> laugh heartily. >> i can't believe you called me out. >> the ladies. >> nothing -- >> very funny. >> it was very funny. >> it's pretty much my initials. >> talking about funny, snap chat, funny pictures, funny

valuation. >> maybe not so funny. >> those pictures are very funny. >> just quickly in terms of the corporate governance aspects of it. the shares they're selling have no voting rights whatsoever. while it's not unusual for silicon valley companies to give fewer voting rights in the past something like an alphabet or facebook, people are willing to forego that because of the growth we are seeing in the country. in the s1 snap's user growth was declining and that the losses are, in fact, mounting. so it will be interesting to see if people are willing to give up their voting rights entirely in order to get a piece of this company, which does not appear necessarily to be a growth company or in a growth phase right now. >> also the s1, snap chat being honest. very honest. they said, we eat, sleep, and use the restroom with our cell phone these days. >> did they use that word. >> i will not use the "p" word but it rhymes with goop.

>> i've never seen that. >> i am flum mentimexed that thl themselves a camera company. melissa, you're the cutest. >> thanks, michelle. >> thanks for watching "power lunch." >> "closing bell" starts right now. 227,000 jobs, great spirit in the country right now. so we're very happy about that. i think that it's going to continue bigly. we're bringing back jobs. we're bringing down your taxes. we're getting rid of your regulations. i think it's going to be some really very exciting times ahead. we're doing it. we're going to be coming up with a tax bill very soon, a health care bill even sooner. and it's really working out. >> jobs, regulation, president trump summ