it. >> goldman says sell whole foods. >> why would you own it in the first place? >> challenge group. >> remember, jim has the hasbro ceo tonight. >> awesome. >> exclusive interview. "power" starts right now. >> i'm melissa lee. trump, toys and touchdowns, three things we're watching this hour. the president is about to speak to members of our nation's military in florida. we'll bring you his comments when he begins. also ahead, your stock of the day, hasbro hitting an all-time high after reporting a monster quarter thanks to dolls. and touchdown, patriots come out the big winners and losers from yesterday's super bowl. "power lunch" starts right now. >> what a finish that game had, everybody. welcome to power lunch. i'm tyler mathisen. stocks off their session lows as

we head deeper into the afternoon. dow was down about 68 points at its depth earlier in the session. now down about 30 points. s&p 500 also lower now on track, folks to end a three-day win streak unless it rallies, like the patriots, from here. brian? >> that's right, tyler. welcome, everybody. we are brian and michelle and, like everybody, we are still talking about one of the greatest, if not the greatest comebacks. did some companies risk the wrath of the president in their commercials? do you think these companies could face a tweet storm for politically charged ads? >> this president takes things very personally. i think he would look at an airbnb ad, lumber 84 ad and say that's a personal affront to me, personal attack on me. they risk that. wasn't it amazing to see tom brady after such a tough first

half come back and execute so perfectly? an amazing thing to watch. >> it was. my wife was rooting for tom brady. i said you're rooting for the patriots? she said no, just tom brady. >> just tom brady, yeah. >> cool. >> what's amazing about the patriots is the sustainable excellence. you see sustainable excellence in several sports teams and franchises, most especially the patriots but also the duke basketball team, for example. the alabama football team. and the lady, women's team from connecticut. >> speaks to the coaching or -- >> the coaching, the organization and i think that's a fascinating leadership study there. >> and how do you -- >> krafts on down. >> how do you get an institutional culture of winning? >> what they do, nobody is bigger than the team. >> yeah. >> you can take that to corporate as well. we're a company. nobody is bigger than the team. i also want to take a shout out

to arthur blank and the falcons who played a great game until the end. i had a chance to sit down with him at west point, did a fireside chat. he spoke to the cadets for hours. great guy, great company. shout out to the falcons as well. big stock mover of the day, hasbro hitting an all-time high, up by about 15%, pacing for its best day in more than 20 years, crushing their rival, mattel. when you pull up the chart versus chart, hasbro versus mattel. let's bring in eric handler. great to have you with us. >> thanks. >> in terms of the sustainablity, what's your projection on that? >> so, look, hasbro had a great, fantastic earnings. they zigged when the industry zagged. in the last few weeks lego had a disappointing holiday season, mattel had a disappointing holiday season.

jack pacific had a disappointing holiday season. hasbro did not have similar issues. mattel missed their revenue numbers by over $100 million. hasbro exceeded their revenue numbers by $100 million. a lot of that flowed through to the bottom line. a really good eps as well. they're well positioned now from an inventory standpoint entering this year. product lineup, they have a very good entertainment-driven toy type of release slate coming up throughout this year. >> you have a neutral rating on the stock. did you underestimate the power of the disney contract for the dolls? >> yes. you know, when i looked at this year, i thought they would have very difficult comparisons in the fourth quarter, particularly with "star wars." but we definitely underestimated the girls' business and the strength of the games business. they beat pretty much on every single revenue line item.

it was just strong execution across the board. and, you know, i guess my one issue holding me back on hasbro is, you know, it's a high evaluatation on a relative basis. it's trading at around 21 times, trailing pe. you give it a 21 times multiple, you can get probably a little bit over $100 fair value. but right now at $95, i don't think it's -- you're going to get the returns that you could in maybe some other sectors. >> is this a sustainable edge for hasbro? >> right now they're definitely in the sweet spot of their product. or i call it content cycle. very high demand for "star wars," very high demand for marvel products. dizsney princess contract. this march we'll see "beauty and the beast" coming out and reviews of that so far have been very, very strong. i think that's going to be a very good toy property for

hasbro. this year you also got "transformers." they're very well set up for this year. and a lot of these products have very long tails. "star wars" is not going away any time soon. marvel is not going away any time soon. >> eric, thank you. mad money hasbro ceo brian goldner sitting down exclusive with jim cramer. be sure to catch that 6:00 pm eastern time. from a smiling mr. potato head to the little blue box, shares of tiffany down 3% on news that the ceo is stepping down. courtney reagan here with the latest detail. >> the timing was really interesting for this one, for ceofrederic cumenal to leave. also the vince lombardi trophy was awarded and valentine's day, big tiffany day.

jeffries called ceo leaving a good thing. only one new standout jewelry collection every 2 1/2 years is not enough. mizuho downgraded the stock to neutral, joined tiffany last month as chief artistic officer, more or less replacing the creative director. by the way, the cfo just started in may. the jeweler says the board has been disappointed by recent financial results but it's also reaffirming annual guidance it gave when it released holiday sales in mid january. some are scratching their heads of whether that's a signal of further sales deterioration or not. he has been with tiffany since 2011 but been ceo less than a year. looking for cumenal's successor, kowalski, who he replaced, is back in the interim. >> i would have fired him just for that lady gaga ad.

pretty. artistic. she loved tiffany's as a child and the rest of it is how she's so against the status quo when tiffany is nothing but the status quo. it's news to me they were launching a new line here. >> it's called hardware. what i think this ad is going after is a millennial, someone that they've been hard pressed to grab because of the timeless nature of tiffany. >> they have no money. they can't have it both way. >> to buy a $100 bracelet and ceos didn't like that. it was too cheap. >> the constant debate they're having at tiffany. do you want to go higher or do you want to go low? staying high and you're losing that customer. that customer is aging out. they already bought what they need. >> not on purpose. >> that's true. >> little white bow. >> really the issue is they're not capturing the people who are aging into their prior demographics. somehow along the line they're losing them. the question is, do you try to capture them when they are

millennials or somewhere in between? i would think that the in between is a much better proposition of margin. >> it certainly is. i think this is what the lady gaga ad -- >> you think. that's the problem. you don't know. >> we don't know either. >> right. >> they've been on both sides of this issue as well. certainly going through a transitional period. the timing of this was very surprising. >> tiffany, because they sell largely expensive stuff, is probably going through a lot of the same issues everybody else, home sales, car sales, $700 iphones. there's just not enough money to go around for bracelets or whatever it might be, or jeans or whatever you sell. >> tourism is a problem for tiffany, certainly, in different places around the world. >> higher dollar, people coming from england. >> sales in europe were struggling. they pointed to the terror attacks as an issue. >> terrible effects on a place like paris. >> so there are actually a multitude of issues going on. >> and their new york store is hard to access because of the security at trump tower.

>> holiday sales are down 14%, in part due to the post election transition which -- >> i don't know how a ceo solves that. >> that's a tough one. turning now to the continuing fallout from president trump's executive order on immigration. 97 technology companies have come together to file a legal brief against the president's order. josh lipton is live in san francisco with that story. josh? >> well, michelle, almost every major u.s. tech company signed on to this brief. so that list includes apple, alphabet's google, facebook, netflix. the order effects a sudden shift in the rules governing entry into the united states and is incomplicating substantial harm on u.s. companies. it hinders the ability of american companies to attract great talent, increases costs imposed on business. tech execs want the world to know of their role in opposing trump here, jack dorsey tweeting that his companies are part of

this effort. in a statement to cnbc, box ceo aaron levie saying the executive order on immigration goes against our core values in immigration. and we are provide to join leading organizations in highlighting to the courts how the order is unconstitutional, unjust and economically unsound. amazon did file a challenging the order, however. when asked why ibm was not involved in the briefing, the company telling cnbc that ceo did convey the company's views directly to the president in person on friday, including how technology can help promote national security and lawful immigration, but trump is not backing down, which is why some think this battle could go all the way to the supreme court. guys, back to you. >> josh lipton, great story there. thank you very much. health care reform delayed.

republicans reportedly divided now over taxes. are some of the president's plans suddenly facing political reality and what impact might that have on your money? that is straight ahead. speaking of the president, a reminder. we are standing by to hear from him. he is expected to speak to members of our military in florida at any moment. when it happens we will bring it to you. you're watching "power lunch." 'to 'y ve o'o'? rent. 'to 'greey,oring ititto telar thr okingi that.wh it's s tgeoi r time, s gevoya.

stocks are flat today. concerns that health care reform, tax reform are at risk or at least will take a lot longer than expected. what does it mean for the markets? bruce biddells and barbara at v voya management. health care replacement, maybe not till next year. he thinks there will be a tax cut this year but didn't sound nearly ascertain leading up to the inauguration when he was so certain. barbara, bedrock premise of this rally has been that there will be corporate tax reform.

how much of this rally is at risk if we don't see that change that leads directly to a higher e when it comes to earnings? >> it would be a mistake to extrapolate some of the political difficulties that president trump has been highlighting on yesterday's program into the future. i think we do have to account for some of the difficulties that the congressional republicans are have iing, repealing obamacare. that may mean that tax reform, as well as potential infrastructure spend may be a story that unfolds later this year into early 2018. >> if i'm selling today or hesitant to buy today because i'm worried, you're saying don't be? >> i wouldn't be. what we're looking at at voya is very important. the underlying earnings strength you've got coming through for the fourth quarter is even better than analyst expectations. 6% year on year earnings growth and is very broad based on sales growth across many sectors. i would also say the other issue we worry about for earnings is

the dollar and the u.s. dollar had managed to come down on its very rapid pace of appreciation. the underlying fundamentals are well supportive of where we are in the market. >> bruce, are you as supportive or do you need to see major legislation this year? >> no. i think the markets are looking at this from a macro perspective. by that i mean you have a friendliyer business environment in washington, d.c. and that translates to a stronger economy and a better stock market going forward. and i think the uncertainty is actually you could consider it almost healthy for the markets. it keeps investor sentiment grounded. we don't get into a bubbly atmosphere, always dangerous. and it's led to lower expectations for the economy and lower expectations for interest rates, which i think a lot of people were worried that a stronger economy would create some inflation. >> sir, we're going to have to cut you off, bruce and barbara.

very sorry about that. breaking new. >> we do, guys. sorry about that. the president making some remarks at lunch in florida. here he is a moment ago. >> how do you like it? you love doing it, right? that's great. everyone loves doing it. great spirit. great military spirit. and this guy, strong guy, huh? think i could lift as much as you? >> only one way to find out, sir. >> i don't think so. how did you like the game last night? good? tom brady, he cemented his place, right? >> yes, sir. >> you know, most of the troops here, sir, are young enough that they came in after 9/11. they all volunteered knowing they were coming into a conflict. they're all smart kids. they had options in life but they chose to come in and serve. >> are you going to make a career out of it? yes?

come on. you have to stay. what about you? >> i came in right out of high school. i've already got 11 years in. >> that's great. that's great. what are you thinking about? career? >> yes. >> you're going to make it a career? that's fantastic. good. >> career, sir. >> good. all right. >> good reenlistment counselor. >> some of my friends are the most successful people and have tremendous respect for the military. that gentleman right there. >> so, talking about the football game last night, like

near ly everybody else, with th troops and also asking about their career plans. and hearing the -- we couldn't see who he was but saying all these people at this table chose to come in, in the wake of september 11th. all of them could have gone on to do different things. there's this old history in the united states if you were a high school dropout, write your way in life, you can go into the military. that is not the military of today, it's very educated military, relatively speaking. what toyota is doing that the president hases taking issue with. president trump, you saw him on tape before but is expected to speak to members of our nation's military in florida any moment now. we'll bring it to you live when it happens. stay tuned. amel eveerey.. bter. reke wit m e al dat t

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uade.com d gend ivest.. upo ndd s. an yr ner titiiringre aru u predo o ismyiren toyota reporting earnings this morning. phil lebeau is live with the detail. >> we'll talk about that conflict in a second, tyler. let's look at what the numbers were for the last quarter of 2016. for toyota, didn't have a whole lot to write home about. overall, the company saw profits drop by 23%, total net profit of $4.3 billion. and it's what they said in the guidance that did get some attention. toyota raising its guidance for all of 2017 by almost 10% due in large part to the weak yen. this has long been a complaint of the big three, advantage when it comes to pricing in the

showroom. toyota, 65% of its vehicles sold in the u.s. are built in the u.s. it is in the process of making plans to increase production at a plant in indiana in the fall of 2019. you can bet when the prime minister of japan, shinzo abe, is visiting donald trump friday, this likely will come up. ceos have met with president trump, although this has not been reported as specifically coming up, it has been a long complaint of the big three, that japanese automakers have an unfair advantage. yes, toyota and others build more in the u.s. those vehicles coming in are the concern for the big three. >> are those mostly lexus makes or -- >> it's a variety. it's a variety. most of what toyota is making here in the united states in terms of its suvs, pickup trucks are made down in texas. and then you have a variety of

other vehicles. some lexus do come from here in north america. they're not all coming from over there in japan. like the prius, i believe, comes from japan. it is a variety of vehicles. >> phil, very quickly -- i don't want to put you on the spot here. buick is under a little bit of heat, guys, because apparently the cars they featured in their ads last night are cars that are made in either poland or another overseas factory. i'm wondering if you hear about the uaw being ticked off at buick for featuring foreign-made cars in their super bowl ads. >> i haven't heard that. at the end of the day, you're caught in a tough spot if you're general motors. you want to feature your vehicles. and not all of your vehicles are manufactured here in the united states. and if you think that vehicle is the best one to showcase and it's made at a plant that's overseas, what are you going to do? they're in a really tough spot here. >> all right. phil, they are. phil lebeau in chicago. news alert here on super bowl ratings. let's get to julia boorstin.

julia? >> that's right. fox announcing the super bowl was watched by 113.7 million people across fox on television, fox sports go. the video streaming component. in terms of fox broadcast network, 111.3 million viewers and 1.72 million average minute audience on fox sports go. to put this in comparison last year's super bowl was watched by 111.9 million viewers on television. these numbers are slightly lower than last year and lower than the record in 2015 when the patriots last appearance in the super bowl brought in an average of 114.4 million viewers. so, fox stressing the addition of nearly 2 million viewers watching on its streaming service. >> julia, they didn't break it down by halves, right? after the first half i bet a lot of people thought this is a blowout, i'm going to leave, and then missed what was so exciting.

>> i bet you're right. i have not seen it broken down. i would love to see it broken down by quarter. we should remember that fox earnings are after the bell today. we could get more on it then. >> and there was overtime, right, so they could have more ads. >> again. >> even though the numbers are more, it could be more profitable in the end. >> absolutely. remember that the ad time was over $5 million for a 30-second spot. fox already brought in all that revenue. the difference between half a million or couple million viewers here or there, i don't think it will impact fox's revenue. >> got it. >> thank you, julia. corporate america decided to get a little political last night during the game. we know president trump was watching. did some of these brands just make themselves a presidential target? still ahead.

hi, everybody. i'm sue herera. here is your cnbc news update this hour. francois fillon refusing to drop out of the presidential race despite reports.

only six 40% americans have. the main reason? well, they say they just haven't gotten around to it. and the jersey tom brady wore in last night's super bowl is absent, unaccounted for. brady said he put the jersey in his bag in the locker room. when he looked for it later it was gone. needless to say it's worth an awful lot of money. >> the jersey, i put it in my bag. and then i came out and it wasn't there anymore. so, it's unfortunate because that's a nice piece of memorabilia. if it shows up on ebay somewhere, someone let me know. we'll try to track that down. >> that is the news update this hour. we'll keep track of that story. see how much it actually -- if it does show up on ebay. >> that's a horrible story. >> i know. >> what is wrong with humanity?

>> the window of theft time was so small. did a couple of interviews. bob kraft came in to give out cigars and brady leans in and says somebody stole my jersey. it was a 20-minute window. >> there was almost a record amount of press access granted to that. not that it was the press. but there was enormous amount of passes that were given out for that particular game. >> stolen on the field or in the -- >> no, no, in the locker room around hundreds of people. >> sounds like an inside job. >> sure does. >> probably the press. >> hope it turns up. thank you, sue. >> you have much more faith in your brethren. >> always our fault. closing to break even. best performing sectors if you can call it that -- they're all in the red basically. we are seeing a real bid for safe havens in the markets. gold is higher by almost a percent here. >> president trump expected to speak at centcom, shorthand for

u.s. central command at the air force base in tampa, florida. we will bring it to you live. meantime, john harwood in washington, d.c. with what we can expect. john? >> michelle, every new president has to find his footing as commander in chief. the same is through for donald trump, as somebody who hasn't served in public office before. and so it's both the -- what he's going to learn in this briefing with pentagon officials, with centcom officials and also the tone that he strikes with these service men and women who are the people that he's counting on to lead the fight against isis that he says is going to take on a renewed vigor. that involves both a commitment to expanding the military, expanding the weaponry available to military. he's also talked about loosening the rules of engagement that military officials have their hands tied. on the other hand, president trump has said in the past that the united states was overcommitted in certain places.

the tone he strikes on how to balance those objectives, i think, is part of what we're looking for. of course, he has a new, very well respected defense secretary in james mattis. that was seen as one of his strongest picks for his cabinet. but general mattis, now secretary mattis, has been reported to be unnerved by some of the initial steps by the administration, the rollout of the travel ban from some of those minority muslim countries and also some reported clashing with the white house over staffing at the pentagon. so, he is establishing a relationship. and this is going to be the first chapter in that. >> is this a prepared speech that he's making in which he might lay out what some have been looking for, which is an expression of what is called the trump doctrine? in other words, where we will engage, where we won't, what we perceive to be our national

security and military interests? >> that's possible, tyler. i would be surprised if he, this quickly into his term -- just a couple weeks in -- decides that now is the moment to establish and lay out the trump doctrine. you know, he had that initial briefing. he then had lunch. you're seeing some of the video now with some of the active duty service men and women. and so i think he is new enough at this and beginning to -- you know, we had the sanctions against iran the other day. he and his national security adviser said they were putting iran on notice. i think he is establishing those boundaries himself and will get those over time. >> historically and traditionally, the media would get a heads up that this is going to be -- >> a major address. >> a major address. but this isn't a traditional white house at this point in time. >> michelle, that's why i say, you know, anything is possible. president trump prides himself

on being unpredictable. and so you -- i would be hesitant to rule out anything before he actually speaks. >> yep. all right. thanks, john. >> you bet. meantime, jack ma taking a swing at trump, alibaba telling a crowd in melbourne, australia that, quote, everybody is concerned about trade wars. if trade stops, war starts. guys, your thought? ma's comments on the mark or near hyperbole of a ceo who has a lot to lose? thoughts? >> mere hyperbole. i don't know that any ceo knows all that much about when war starts or doesn't. war and trade go together always, historically. >> 90% of alibaba's trade is going one way, let's be clear as well. ma has a lot to lose. >> their whole premise in terms of their business here in the united states is unlocking a whole new audience for u.s. companies to sell their products. so, for instance, washington state cherries getting shipped

to china. yeah, they do depend on trade a great deal. a lot of that trade is going the other way. >> a lot. you think a lot? >> i think their growth business, yeah. that's a big part of their business. >> speaking of trading, rick santelli is on the trading floor with the bond report. rick? >> it seems to be a lot about doctrine. the last president's foreign policy doctrine, i'm interested in the new president's. the doctrine is always embedded in the charts. look at the the tens. range from unemployment friday to today, all of it seems to be to the downside. let's see if we hold these low 2.40s. let's pick december 1st. our second tightening on december 14th. that really defined the fed. and potential fed doctrine. we look, we can see a high was established right there on the left when the fed tightened. the panel doesn'tthe euro.

it established a low there and the chart looks pretty good. on bunds, they are really testing the same area after the fed tightened and finally the equity markets. if there's one thing we can all agree on here, at december 1st, which reflects the tightening also seems to show a market that seems to like the market of not only the last fed meeting but the last labor statistic as well. back to you. >> got it, rick. thanks. four big stock calls of the day. shipping, golf clubs and cars are on that list. your daily dose of street talk is next. rewnti tut es ae.ho you sve tyon'

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shares up 10.7%. now to the bad, newell after missing expectations last quarter, also cutting its sales and guidance for 2017, newell down 4.5% and downright ugly day for lab corp. the company is in talks to buy pharmaceutical development for $8 billion, the biggest deal ever but investors maybe seem a little spooked by the price. that stock is down 6.6%. michelle? we are learning more about donald trump's plan to separate himself from his business interests while he's president. wealth editor robert frank has the latest. robert? >> remember last month donald trump and his attorney announced that plan to separate the president from his companies and business empire to avoid conflicts of interest? they showed that table piled high with documents, a trust to hold his assets. the trust was actually set up in 2014 and he put his ownership

stakes in that trust about a year ago. the most important detail here is that this is a revokable trust. meaning he can take his companies back at any moment. now usually if somebody wanted to create a trust like this to separate their conflicts they would create an irrevokable trust. trump is the sole proprietier of the trust, to his exclusive benefit and so the income of the trust could flow to the president. his son, donald jr. is the trustee. it may not separate the president from his legal challenges to the company especially in regards to the washington hotel. the lease to the government bars elected officials from benefiting from that lease. trump put the hotel into the trust. it may not be separate enough. and so the issue here is not so much the conflicts of interest which, of course, will always be an object of criticism among his critics, but will it separate himself from the company enough

to prevent plaintiff's lawyers and other attorneys for other companies to sue him because they're saying, look, you basically are the company? >> because he is the beneficiary? >> because he is the beneficiary, sole proprietor and it's revokable meaning he could take it back at any time. some plaintiffs lawyers could argue it's smoke and mirrors that logistically, functionally, if not legally, you still run these companies. you still control them. and the issue again is could he be tied up in so many plaintiff lawyer suits during his presidency -- we know now the president can be subject to private lawsuits -- that it becomes a distraction? >> this is how these trusts are generally set up, right? this is not different than what -- he's taking an old structure and trying to impose it on a new situation? >> well, a trust is anything you make it to be. the devil is always in the details. that's why it was very important for us to learn that it's revokable, not irrevokable. in the eyes of the law, that's

different from an irrevocable trust. we also don't know where the income will be distributed, who will get the income and tax structures of the trust. we know a little bit more than we did. this was set up years ago. he didn't just create it. >> is the trust a public document? >> no, it's not. we got this because basically somebody asked for it in regards to the washington hotel and so it's with regard to whether that is -- prevents him from owning that trust and the hotel anymore. >> and usually in these cases -- mr. trump's business interests are very different from the usual because -- >> yeah. >> they are hotels and apartments that have his name on them. >> right. >> you can't use a blind trust. >> right. a blind trust was ridiculous. >> but that's the way they've usually gotten around -- >> right. but irrevocable, i'm going to put them in this touch and not trust them again.

revo revocable means i am going to move them over here but can still get to them. we kick it off with fedex. raymond james upgrading fedex. rj says it will be materially -- margins are close to bottoming and investors will soon come to appreciate that investments are paying off. the analyst says he sees a glide. also stumbles for fedex competitor, ie, u.p.s., will boost fedex's valuation. >> stock number two, oil and gas. nomura boosts it 30% upside. they like a few things about the company, asset quality of their base, management team and the fact that the stock is down here today, coming into this morning. many other oil stocks are slightly higher year to date.

underperformed. it is up 1.3% on that call. >> third stock here, true call. rbc upgrading true car saying the stock has been in recovery mode after a steep decline because of execution issues and pricing which, by the way, is currently half of what it was at the peak. the price goes up 5 bucks. it's up 1% today. >> took a huge hit the last two years. >> ugly. very ugly. >> all right. smaller cap call of the day. probably a name you know. callaway golf, ely, from a buy to a neutral. casey alexander says it's over shot. guidance will be conservative and an ipo to top golf which callaway owns 15% of. not a lot of upside, 11% to 12%. top call is that place you go --

>> your swing and they diagnose. >> games because they have electronic -- who gets closest gets a point. they've got beer, food. they're trying to sex up the idea of a golf driving range. callaway owns 15%. kind of a fun place to go. >> sounds fun. >> i've never been. >> "power lunch" road trip it sounds. >> we should do a show about golf or cabo san lucas or paris. >> any of those. >> one of those three will work. tyler? thank you very much. folks, corporate america decided to get a little political during last night's big game. we know that president trump was watching. did some of these brands just inadvertently or vertentally make themselves a presidential target? that's still ahead.

i would also like to thank the chairman of the joint chiefs of staff. that's big stuff. where is the chairman? joe, stand up. this is one of the great people. also everyone serving at the air force base. we'll be loading it up with

beautiful new planes and beautiful new equipment. you've been lacking a little equipment. we're going to load it up. you're going to get a lot of equipment. importantly, also, let me thank the coalition partners and representatives assembled here today. we proudly, very proudly, stand with you and we will be fighting for your security. they're fighting for our security and freedom. let me recognize our great governor and a friend of mine. he endorsed me. and that makes him a better friend of mine. if they don't endorse you, you can talk but it never is quite the same. rick scott, governor, stand up, please. final lynn on behalf of the

entire nation, let me express my gratitude to all members and i mean all members of the military serving in the united states central command and united states special operations command. we salute the army, marine corps, navy, air force, coast guard along with our civilian defense personnel so important to the success of what we're doing. let me also recognize the military families and spouses who bravely shoulder the burdens of war. i want every military family in this country to know that our administration is at your service. we stand with you, 100%. we will protect those who protect us and will never, ever let you down. as your president, i have no higher duty than to protect the american people. highest duty we have.

i said it the other night. great, great supreme court nominee. you all saw that. i said to myself perhaps the only thing more important to me is the defense of our nation. supreme court so important but we have to defend our nation and we will do that, believe me. we will do that. and each and every one of you is central to that mission. the men and women serving in centcom and solcom have poured out their hearts and souls for this country. they really experienced things that very few people get to experience. you shed your blood across the continents and oceans. you've engaged the enemy on distant battlefields, toiled in the burning heat and bitter cold and sacrificed everything so that we can remain safe.

and strong and free. our administration will always honor our sacred bond to those who serve and we will never, ever forget you. believe me. we will never, ever forget you. we len sure that the men and women of our military have the tools, equipment, resources, training and supplies you need to get the job done. you've seen me say we've been depleted. our navy is at a point almost as low as world war i. it's a long time ago. it's a long time ago. it's not going to happen any more, folks. it's not going to happen any more. not with me. we will ensure no taxpayer dollars are wasted. i've already saved more than $700 million when i got involved in the negotiation of the f-35. you know about that. i want to thank lock heed

martin, boeing and all the companies that have really opened up and when i say opened up, rick scott understands this very well. opened up and cut their prices. that's what they did. we've got that program. it will be back in great shape from being really very troubled and we are going to be taking care of our great veterans. we will make an historic financial investment in the armed forces of the united states and show the entire world that america stands with those who stand in defense of freedom. we have your back, every hour, every day now and always. that also means getting our allies to pay their fair share. we also support nato and only

ask that they make their full contributions to the nato alliance which many of them have not been doing. many of them have not been even close and they have to do that. central command and central operations command are at the very center of our fight against those serving at centcom have bravely battled a vicious enemy that has no respect for human life. today, we express our gratitude to everyone serving overseas, including all of our military personnel in afghanistan. socom has dispatched its legendary warriors in defense of the united states of america.

no enemy stands a chance against our special forces, not even a chance. they don't have a chance. and that's the way we're going to keep it. and you're going to be better off because you're going to have the finest equipment known to man. going to be better off. the proof that our nation has been blessed by god, look no further than the men and women of the united states military. they are the greatest fighters and the greatest force of justice on the face of the earth. the challenges facing our nation, nevertheless, are very large. very, very large. we're up against an enemy that celebrates death and totally worships destruction. you've seen that. isis is on a campaign of genocide, committing atrocities

across the world. as they did on 9/11, from boston to orlando to san bernardino. and all across europe. it's gotten to a point where it's not even being reported and in many cases the very dishonest press doesn't want to report it. they have their reasons and you understand that. so today we deliver a message in one very unified voice to these forces of death and destruction, america and its allies will defeat you. we will defeat them. we will not allow it to take root in our country.

we're not going to allow it. we've been seeing what's been going on over the last few days. we need strong programs so that people that love us and want to love our country and will end up loving our country will be allowed in. not people that want to destroy us and destroy our country. >> president george washington wrote that to be prepared for war is one of the most effectual means of preserving peace. almost 200 years later, as the

general was also speaking about ronald reagan, he said that wisdom comes in three very, very strong words. peace through strength. i've said it many times during the campaign, speaking in front of tens of thousands of people at one sitting and i always would mention america first. a phrase that you probably never heard. make america great again. anybody ever hear that? the men and women of the united states military provide the strength to bring peace to our troubled, troubled times. we stand behind you. we support your mission. we love our country. we are loyal to our people. we respect our flag.

we celebrate our traditions, honor our heroes. you are our heroes. we are prepared to fight and we pray for peace. thank you. god bless you. and god bless america. thank you very much. president trump finishing up his remarks in tampa, florida. at macdill air force base. 27 countries of nato are supposed to spend 2%, at least, of their gdp on defense and military spending in their country and a lot of them don't doit. france, germany and italy, the three biggest economies there certainly do not. greece that actually overspends on everything does meet its commitment. >> he talked extensively about having the right equipment, that they will have the right equipment to do their job and when i heard that, i automatically thought military spending. take a look at defense contractors. they're up across the board slight tick higher on a day when

we are in a very tight trading range for the overall markets. >> just 2:00 pm on wall street. here is what we're watching at this hour. is fear coming back to the markets? are people starting to worry that president trump, will he come through on his campaign promises? even the ones that could be bad for business? and speaking of president trump, how are the ultra rich changing their investments because of the president? plus 16 months, is it enough time to find a replacement for bob i gechlt r? krechlt ceo for disney may stay on a little longer. >> saying the share koss double in a year that gains. stock already up more than 5% over the past year. not meeting the deadline to file financial reports and could be

delisted. and polo ralph lauren rebounds, hitting a more than six-year lo low. >> to the possibility that cuts will not happen this year if they happen at all. should the 535 women and men of congress play a bigger role than previously thought? bob pisani joins us now with more of an uncertainty that creeps into the markets. >> there are no signs that the market is rolling over because they feel the trump trade is not working anymore. goldman sachs united a whole debate down here this morning with an early report they had out. they note that the economy is close to full employment. so the scope for growth might be capped. the whole point is maybe these are going to fade the trump trade down the road. also said that pro growth policies could take years to realize. the market is now coming to

understand that. and the most controversial part that growth sentiment might be peaking. there might be some truth to the idea that the recent strength in economic data convinced some we'll get stronger gdp growth. this is speculation on goldman sachs parts. look at the state of the markets right now. index at record highs. sentiment used to be streamly bullish. now it's mixed. fundamentals have been improving and main paradigm is the reinflation. financials, materials, industrials stocks overall. those are the ones that have continued to hold up. defensive names like consumer staples and utilities have clearly been the laggards. overall, united rentals, u.s. steel, jp morgan and financials, all the big names still holding

up. interesting piece of speculation, but so far markets are not reflecting that fear. guys, back to you. >> all right. thank you so much, bob. president, of course, having a huge impact already on corporate america. we know because so many companies are mentioning his name in their earnings reports and executives mentioning him on their conference calls. seema mody has that part of the story. seema? >> we've been reading through all the transcripts and perhaps it's no surprise that president trump's policies have gotten a lot of attention this season. he has been discussed about 56 -- on 56 different earnings calls so far. the big takeaway, cautious optimism on corporate tax reform, at&t cfo saying it makes sense a company our size with the taxes we pay would clearly have an opportunity to benefit from a change in tax rate. chairman and ceo on steel corp says the trading policies the view on infrastructure all look positive for us.

repatriatie ration -- repatriat generally positive tone, though, guys, some cautious commentary around the potential impact of protectionist trade policies, specifically border adjustment tax which so far has gotten over 90 mentions discussed with ford, and others with most executives saying it's still too early to quantify how this tax policy would impact their bottom line. corporate america, deductibility which so far has gotten -- >> that would be a huge change. thanks, seema. >> there will be a lot of changes ahead in u.s. policy and so how are the ultra healthy handling this? what changes might they make in their portfolio?

let's bring in michael felger. investment group club. you don't manage the company, per se. you know where the money is and what people are doing with it. since the election, have the members of tiger 21 done anything in terms of changing their portfolio composition? >> most of our members are wealth preservers. they already sold the business and they're investing for the long term. they don't want to change their asset allocations quickly. we have an all-time low allocation to public equity, about 20% private equity, 23 and real estate 30, totaling will 73%. so the answer, there hasn't been a lot of changes. if you were in the markets last year, you did well with the bounce year in and it's really a wait and see. on the one hand, policies are very exciting. pro-business policies. on the other hand concerns about execution and -- >> people holding a higher than normal amount of cash, i gather

it's 10%, 11%. >> 12%. >> are they doing anything with it or sitting and waiting? >> they're feeling very secure. a lot of people that i heard at our conference -- we just had our annual conference in florida. 50% cash levels from recent sellers wanting to see the market shake out before they change. >> when you say a low in equity holdings, it sounds -- i couldn't tell. is that because of trump or they were already very low in equities, leading into the election? >> good point. a, they were low already. and, b, that's only public equity. when you combine real estate and private equity, it's a pretty high 72%. and that's what happens when you have a low interest rate in environment. >> it's generally the realm of the wealthy. let's push that aside, michael. people theveng of think of us a stock network and we are but we're a money network. outside of the private equity where is the single best investment for tiger 21 right

now? >> real estate. >> commercial, residential? >> investment grade where it's commercial or residential. >> buying physical buildings? >> both. >> bonds, debt, stocks? >> for people who have the skills to buy it themselves they're better off buying it zblemsz an actual building? >> actual building. >> why do they like it? >> it's tangible. it's income producing. they can see it, touch it, feel it and fix it. >> are they worried about inflation? >> inflation is a concern. when you have lows like this. >> when they are in stock, do they tend to use hedge funds? there's really been a turn, especially as we've gotten returns of 2016. >> tiger members, their top public equity holdings are etfs in the last two years, dramatic and hedge funds are at all an all-time low of 6%. hedge funds typically correlate.

if you get a spike in interest rates you'll see better hedge fund activity. >> have you heard that from local members, that they're looking to do that? >> members are saying we can't be stock pickers. we know that doesn't work. we would rather express our relationship to the public markets with etfs where we can make money is where we have an edge. that's private equity and real estate. >> what's the average net worth? >> about $100 million. >> oh, is that all? >> that's it. >> what was it five years ago? 50? >> no. i would say our members in the last five years have held their own with slight increases. they've been very security-minded. >> hopefully they've done more than hold their own. the stock market has doubled. >> well -- >> he said at the beginning, remember? >> only doubled in the portion of your assets that are 20% allocated to the markets. >> how can i become a member, michael? >> sell a business, tyler. >> $100 million, i guess. >> what do i have to do? >> you have to own this place, i

think. >> michael, thank you very much. >> thank you. here is what's coming up on "power lunch." what your financial adviser needs to tell you. latest on the new rules which could end up being the same as the old rules. disney earnings report out tomorrow. and big debate on two sides of the border tax battle. all that and much more on "power lunch." at a a a? inurerer fotad'rn tevi a a? handanork inront ? ths e ont! in fm righ c

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welcome back. >> shares of tyson foods lows on the day so far after the meat processing food giant but also disclosed securities and exchange commissioner investigators are looking into whether the company allegedly conspired with rivals to control chicken prices. they are cooperating with the investigation but a lot of details right now. shares of other poultry producers also taking a hit on the heels of tyson. down 4.5%. >> i ate a lot of wings yesterday, dom. >> i did, too. >> trying to help them. dom chiu, thanks. there is some confusion about the rule regarding which kinds of financial professionals need to make disclosures, what they need to disclose. elon mui joins us now to explain

the fushry rule. >> financial advisers put their clients' interests first. there's been a lot of uncertainty about that date after the president signed a memo friday. administration officials told us the memo would delay the start of the rule. the language of the memo doesn't actually say that. this is a change that caught industry and consumer groups off guard. the delay is considered a major victory for this industry. arguing that the rule unfairly exposes them to litigation and limits their choices in saving for retirement. it could cost the industry as much as $20 billion in lost revenue. pushing back the start date would have given the department of labor time to determine how to change this rule going forward. i've been talking to folks on both sides of this debate all weekend and today and are confused what this means for the regulation going forward. reached out for some clarity on this issue.

we want to know whether there might still be a delay, how they would do it and questions about whether or not the white how has the authority to postpone this rule. still a lot of unanswered questions. >> the white house thought they were undoing this, right? all the stuff that came out. the flashes that hit. >> gary cohn interview on cnbc. >> said this was done. >> that's what they were telling us as of thursday evening. even industry groups put out thanking the white house for delaying the start of the rule. however, it's really unclear whether or not the white house has the legal authority to do so. if you want to change the finalized rule already in the books you have to issue a notice, open up to public comment. and that's a really long process that cannot necessarily be done through an executive order from the white house. >> so we're learning that executive orders are limited anyway in this scope, are they not? there's a lot of limitation to executive orders. >> this wasn't even that. it was a memorandum. >> exactly. >> so what does the memorandum say if it didn't say postpone

while we study, what did it say? >> the memo ended up being largely symbolic. it told the department of labor to review the regulation once more and to conduct another cost benefit analysis on this. now earlier this morning, i did speak to former labor secretary tom perez on this issue. he is the one who helped push this rule through at the end of the obama administration and he's worried that the administration is prejudging the outcome of that review and that in itself could violate the law. >> ylan, thank you very much. and welcome, by the way. glad to see you. let's stay on this topic. democrats likely willv a lot to say and pushback on any financial regulation. john delaney of maryland helped to craft the fiduciary rule. and tax repatriation. let's start with the first one, this fiduciary rule. we won't use that term for the 18th time. you understand the point. the battle seems to be very

clear. this just better aligns the industries. financial advisers say it's going to ruin us. we'll be sued over every bad investment that we make and bad investments are inevitable. what do you see ultimately happening with this rule you helped craft? >> nice to talk to you, brian. obviously i think the rule is a good rule. it's appropriate. it was crafted in a careful manner so that some of the things that people say it does, in fact, it doesn't do. i think the white house is clear in their intent. this executive order, which to some extent are becoming like press releases or campaign promises. it's clear from the intent of the order and very clear from mr. cohn's comments on friday, which i quite frankly didn't understand, that the fiduciary rule doesn't allow choices. nothing could be further from the truth. and went on to say only way people can create wealth is through lots of choices. they're missing the point on what this rule does. it's clear they have an intent

to unwind this rule any way they can. >> help us understand the process without getting too much in the congressional weeds, if you l when the president issues an executive order or a memo, you still have a say in congress. that's the point we tried to make at the top of the show. what's the process between what trump says and what actually happens? >> right. and as it relates to the fiduciary rule it was a memo, not an executive order. he did an executive order more broadly on dodd/frank. when you summarize what former secretary perez had to say about the rule-making process there is a formal process they have to go through. congress could also pass a law to make changes to this ruling, et cetera. and i think there's a real chance that that happens because the republican congress, republican-controlled congress has long wanted to unwind this rule and so there's as much of a probability that it happens through congressional action as it does through administrative action.

>> congressman, if i read the fine print, won't i understand that my financial adviser, whatever they're calling them these days, may not necessarily be a fiduciary? they're well outlined already. what does this rule do aside from elevating everyone who touches a retirement account to the responsibility of being fiduciary which may, in fact, mean cost to me as the investor? >> it doesn't necessarily mean cost. right now the standard is suitability. the standard of a lot of these people are held to is whether or not this investment is suitable to you, right? the new standard of the fiduciary rule is that it has to be in your best interest. that not only gets into the quality investment advice but whether there's conflicts. in other words, if you want to buy an s&p 500 fund and the firm you work for offers a product and they charge a point but you could also buy the same product for an eighth of a point, the adviser has the obligation now under the fiduciary rule since

they're the same products and won't offer any different investment performance to give you the better product because that's in your best interest because the fees are lower. it also gets -- it doesn't just get at the quality of the advice, asset allocation, et cetera, it gets at some of the disclosure issues around conflicts. >> the critics -- finish your thought. i'm sorry, congressman. >> i was finished. go ahead. i was finished. go ahead. >> the criticism, for one thing, a lot of financial services company are long down the road toward making the adjustments. >> absolutely. >> of what they need to do to comply with this standard. the criticism has been, as i believe brian pointed out, that there would be less choice. >> right. >> is that a red herring? >> i think so. >> a head fake here? and what sense would there be less choice? >> first of all the fiduciary rule doesn't limit choice at all. people are arguing against this rule are assuming that the industry will just limit choices as a way of satisfying this

rule. i spent my whole career in the private sector prior to running to congress. i started two companies, took them public. i believe strongly in the private market's ability to innovate into a new situation, right? a new situation with this fiduciary rule where they're changing the standards. better-run companies that invest in technology and better products, in my opinion, will be able to meet this new standard and offer their investors a lot of choices. this whole notion of choice being limb limited in the fiduciary rule is just not true. that's what people are using to try to go at this rule. there's nothing in the rule that says you won't have as many choices. better companies, companies that innovate, that adopt this rule say, yeah, i want to put my client's interest first, before my own interest, offer them the best advice. they're going to figure out how to do it, offer choices and make it affordable. >> how do robo advisers fit in? it's a very low-cost way of

investing. >> robo adviser, i'm not sure exactly what that means. i hear robo adviser and think about innovation of good technology, sophisticated platforms with human touch and human advice. will the best in class companies integrate technology to lower their costs so that they can continue to offer a competitive product? absolutely they're going to do that. that's happening in every industry in america. so, my view is the future of this industry will involve lots of choices. there will be a fush iduci a. r standard. this whole notion of choice is a little overblown to begin with. >> you made that point, congressman. we got t thank you so much. we really appreciate it. thanks for coming on. up next, playing a little political football during last night's game. did madison avenue just put itself in the president's crosshairs? later, the big change that may not be coming to disney. we will explain when "power lunch" returns. geto equies-rkd gokeokok.

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one of the standout commercials to some people on this team, as well as our next guest. let's get to it, talk about the ads. advertising worldwide. that ad was a perfect example of what i found sort of overwhelming in its theme last nigh night. >> it was a long way to go to get to the crv. >> you don't need a lot to get to the crv. you buy it and go. gets 30 miles to the gallon. >> was it one of your ads? >> that was one of our premiere ads. >> no. but i think it was a great ad. >> why? >> we're talking about building brands. yes, we have the foundation

about what industry they're in, what they're trying to sell. we're trying to build an emotional high ground for them. what honda has done well for many, many years, it has a clear, what we call bedrock, strategy. >> high quality, good gas mileage, retain their value. they're not going to wow anybody with the styling. steve carell, cheesy mustache, then it goes, buy a crv. >> well, i think if you look at the super bowl ads that were there last night -- >> did you have any? >> we did. >> which ones? >> the one that we did -- >> brilliant. >> thank you very much. >> oh, god! michelob ultra. >> the workout one. everybody is working out. theme song from "cheers" and they all drink a michelob ultra at the end? >> well, yes. we found a very good response to it. what we try to advise clients is to make sure when you have a brand and spending this type of money on the super bowl there's a strategy behind it.

you don't want to be a one-hit wonder. that mike lobe ultra is part of a larger strategy for the brand and seeing the business results behind it. >> airbnb, the lumber company with its 90-second ad about the progress of an illegal immigrant coming to the united states from mexico. i wonder about these -- they clearly wanted to take a stand on the immigration issue, which is so hot. but i wonder, president trump watching these ads, knowing what we know about him now, probably sees these as a personal affront to him and his agenda. i mean, aren't they risking a lot, doing this, waking up to a tweet that costs a billion dollars worth of market cap? >> the super bowl is the campfire of america. it's where people want to come watch the super bowl and be entertained, to your point. but it has to come back to the business. you're spending a huge amount of

money and you have to make sure you're speaking to everyone. airbnb was in danger of making itself to a very particular type of customer. it needs to be more mainstream, appeal to everybody. it was speaking to those who already buy into their brand. >> have the super bowl ads, as a class, lost their mojo, ability to connect? i have to say, i did not watch many of the ads last night. i was getting another beer, michelob light or whatever. >> ultra. >> actually i was drinking margaritas. but my sense is that the anticipation of these ads has declined in recent years because we've -- we know they're coming. they're prereleased and the level of anticipation isn't what it was. >> certainly debate about are the ads being released too much in social media beforehand, taking away from that sense of watching the super bowl together.

>> to see the ads. >> there's this concern it's going from the super bowl to the super bubble. everybody is look at it individually instead of as a collective. it's a concern. the ads that really did well, we're still seeing very good response rates. >> what's the best ad, besides yours? what was the best ad you saw? not necessarily the most enjoyable. >> melissa mccarthy ad for kia was very impressive. you talk about the environment and automobiles you can imagine this environment that it's very contentious. they use schumer to engage everybody. and we're seeing that trend very well this morning. >> is the value still there for companies that buy these ads at $5.5 million for 30? >> when it's done properly, rooted in a proper strategy, it absolutely does. in this environment with trump as president and seeing how he's reacting, i think it's never been more dangerous or more exciting to be a chief marketing officer of a company.

i think there's more at risk every time you go on air than ever before for your brand or business. >> did you like gaga? >> it was very interesting. she would not have done a tiffany's ad a few years ago. she's maturing as a brand and did a great job of uniting the country. >> bridge to the millenials. >> they're saying we've got to go. >> once you start talking about millenials wedgies on the air, you've got to go. got to cut it. >> great to see you. >> sue herera has a cnbc update. sue? >> hi, brian, and everybody. israel firing on hamas training sites in gaza this morning after a rocket launch from the territory exploded inside israel. israel holds hamas responsible for all incoming fire. no reports of casualties on either side. afghan diplomat was shot dead by his own security guard inside the consulate in karachi,

pakistan. the security guard and afghan national was quickly taken into custody. new study suggest pet medicines pose a poison risk for kids. children 5 and under account for 80% of calls to poison control center for pet medicines. in almost all cases they consumed drugs intended for the family pet. and speaking of pets -- maybe not pets but take a look at these lion cubs. they made their debut at a zoo in germany this morning. white lions have a recesssive gene that makes their coat very light in color, obviously. white lions have been victims of poaching in africa that has left that species near extinction. see, it's not pandas, brian and melissa. it's not pandas, but they're so darn cute. >> they're not bad. >> they're cute. really cute. not bad? >> not as cute as the 80s

hairband white lion that sang the hit song "wait" but those are the second cutest lions. thank you, sue. >> you're welcome, guys. >> very high standards. ♪ wait wait ♪ crude prices going down about 1.5%, finishing at $53.01. there is some support at that level. although we did dip below today. this is typical of the pattern we've seen. up friday, worried about the geopolitical tensions and iran sanctions and you've seen the market come off a little bit. couple of reasons traders could break out from here, relatively weaker dollar is one and also rebalance is happening with the opec efforts. we just don't know necessarily what inning we're in at this point. if you're not comfortable with that range, 52 to 54, get comfortable with it. back to you. >> thank you very much. jackie. battle lines drawn on the border adjustment tax. big debate coming up on "power lunch" after this. e hfepued

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there is a massive battle going on. under the plan put forth by house speaker paul ryan all

imports would be taxed, exports would not be taxed. it's called the border adjustment tax and what a long washington tradition, money is being put to work on both sides of the issue. supporters of the proposal have formed the american made coalition. it's made up of companies -- it's the americans for affordable products coalition. they're made up of retailers like nike, walmart, macy's. they all import a lot. so would a border adjustment tax be good or bad for the united states? american made coalition, he thinks this is the greatest thing since sliced bread and brian dodge, americans for affordable products says this would end the world as we know it. gentlemen, good to have you her here. >> why is the american made coalition pushing so hard for this? >> the goal of the brady plan is

to keep jobs and money here in the united states. and the challenge is that our tax cut right now is one of the worst in the world. it over taxes production here in the united states and under taxes imports from coming abr d abroad. the net result is that we have fewer jobs, less investment here. brady plan is going to fix that. it's going to allow us to leap frog from going from one of the worst tax codes in the world to one of the best. and the border adjustment is kind of the glue that keeps the whole thing together. >> mr. dodge, why do you say that mr. reardon is wrong? >> the border adjustable tax is little more than a hidden consumer tax that will force consumers to pay as much as 20% more for the products that they need. gasoline is estimated to go up as much as 35 cents a gallon. common household goods, apparel, things that people count on every day, pajamas, will cost more. really just so a certain select group of corporations can avoid paying taxes forever. we think that's bad policy.

and we are telling lawmakers, our consumers and constituents that very point. >> mr. reardon, you must realize the hurdle you face with retailers like walmart who think my gosh, we import nearly everything. suddenly i'll have to pay 20% tax on all those things? what do you say to them? >> the goal is not to punish walmart and others who import a lot of goods. the point is to ensure that when americans are investing in the united states, creating products here that they're not at a tax disadvantage. the whole point of the brady plan is to cut taxes so we have more investment, more jobs, higher wages and at the end of the day, the consumer is going to be benefited, not hurt. >> will the consumer be paying more for their products? >> no. >> why not? >> we're hearing this is some sort of experiment. it's not an experiment. border adjustment taxes have been around for 40 years. wto first started making them legal back in 1970. just about every country that we

compete with has border adjusted taxes. when the countries move to a border adjusted tax, currencies, adjust, markets work and the consumers are protected. that's why countries continue to move to border adjustment. just about everybody we xeep xooet with has one. it's about time we do, too. >> wouldn't this put us on a more even playing field? >> the notion that this is common around the world is misleading. it's a component of an additional tax called a value-added tax. we don't have one here now and i don't believe we want to have one. the reality is that consumers will ultimately have toay more for products that they need. and i think the argument that currencies will adjust will be cold comfort and probably not fly with middle american consumers who are concerned about having to pay more for products and relying on this theory that currencies will adjust. we've heard from many

economists, most of them practitioners, who say that's simply not true. it won't happen that way. the fact that there's no comparison around the world where a border adjustment tax is a component of the corporate tax like we have here means there's no example to see if it would actually work. we highly doubt it. >> we've been debating it for weeks. we finally see the results of tax reform. brian and brian, thank you for joining us. >> thank you. >> thanks. stocks overall may be flat today. there's a lot of action in the gold market. big move there. we'll tell you which way, why with the trading nation team and get you ready for the big earnings report a day before it happens. we are diving into disney. house of mouse up next. he serce? eisine becesursine at wma more-coceelerie h eisine becesursine

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ane fr 8thnd t out ian w every time you think gold is out, it just keeps coming back. gold rising to a fresh three-month high. nothing better than fresh gold, guys. does gold have more room to run? market strategist with trader. gold is kind of like the patriots. it's over, finished.

turn the channel. what do you mean it's make a comeback? why is it up? is it up on this international concern about a trade war inflation or something else? >> there's a lot of reasons. a little bit of uncertainty here in the united states and geopolitically around the world. it's working off a great level we've seen in december. i think there isn't some doubt we'll get three hike this is year. but we're running into the hundred day moving average. am i buyer right here, right now? no. i would like to see it pull back a little bit. february, march, april, may, june, this market would run into 1250 and stall out. i think 1400 could be in the cards this year. right now i wouldn't be a buyer. >> you would not be a buyer here. okay. chad morganlander you're a fund manager. talked to us in the past. little bit of gold, 5%, is appropriate. have you upped that allocation or lowered it? >> no. we're sticking with 5% total return what we're looking at over the next four months is between 4% and 6%.

we think this is a good hedge against any kind of dislocation against the financial system and believe you're going to go to higher highs. we would play gold, invest in gold as opposed to gold miners because of the general schematic, we are might optimistic and constructive on the yellow metal. >> optimistic and constructive. 5,000 of that should be in gold, according to chad. bill not a buyer, however. thank you very much. for more trading nation go to tradinganyways.cnbc.com. meantime disney ceo bob iger supposed to retire. could he stay for an even longer term? plus a big exclusive tomorrow. you will not want to miss, worst performing stock in the s&p 500 this year, under armour and ceo kevin plank will join fast money's half time report at noon.

let's take a look at where the markets stand right now. you see basically sort of slightly flat. the dow off 32 points. was down about 68 at the lows. s&p looking potentially to snap a three day, i almost said three gain, three day win streak. really the smallest amount lower. very exciting super bowl, of course. first time the game ever went to overtime. biggest come back ever. so how did that translate into ratings? julie boorstin has the numbers. >> reporter: well super bowl ratings were high but not as high as last year, driving 111.3 million tv viewers, in line with the 2012 super bowl. down from the record set in 2015 when the patriots last victory drew 114.5 million viewers. now including streaming video on

fox sports go and fox deportes the total number rises to 117 million makes the second best super bowl platform. we'll hear more about the big game treernd ad rates when box reports. tomorrow afternoon disney reports focus is on the ceo bob iger. he may extend his contract for a third time. disney is not commenting. no official update on the ceo search since heir apparent announced his departure. >> disney reports earnings tomorrow. what should we expect from the media giant? stan, i'll start off with you. was there a risk premium embedded in disney shares because of the looming departure of bob iger.

does that get taken out of the stock and the stock goes high center >> the premium is always there. the risk is always there to the down side. we believe that anyone who takes his place would be viewed as a negative for stock. so, obviously, any extension to his term -- >> he's so great that anybody who takes over will be worse? >> will be worse. >> nobody can be better than bob iger. >> can you assign a dollar value >> we haven't. that's up there for grabs. >> so if goofy took over it wouldn't be good. >> he's the tom brady of ceo in the near term. >> i'll go to you. what do you think the odds are of iger actually extending his term if the company were to go to the outside. who is the most likely candidate, in your view? >> that's part of the problem. if you try to think who likely candidates are. it's hard to come up with a convincinglis. particularly when you consider disney has such a unique culture

that you need bring somebody in who wouldn't disrupt that and bringing somebody from the outside is a big risk. they would rather promote internally. i gee. i don't necessarily think who follows bob iger won't be as good as bob iger but the perception on the street is the case is whoever follows bob iger won't be as good. >> hasn't some of their bench melted away, left >> some of it. they still have a lot of creative client. we can see from the success of their studio they have done an exceptional job on execution. even with bob iger moving away a little bit. >> creative pipeline is a different thing from management pipeline, from executive succession. >> changing what has been ultimately the biggest challenge for disney, right, everybody who read barron's, saw this article

revenues are not growing that much. when it comes to what they are doing in cable they are losing subscribers and charging who is left more money. >> yeah. i think that's been the challenge for the stock although it has worked pretty well over the last few months. people are worried about the espn business. they generated an awful lot of revenue and profit out of that business. with the cable bundle beginning to deteriorate that's a question in people's minds. on the other hand the movie side has been doing the potentipheno well. >> we've talked about espn a lot up here and heard from espn. if you're disney, if nbc ratings go down one presume comcast or cable side -- espn is not. espn is a contact provider. do you care? should investors care whether or not i watch espn on a 70 inch

flat panel through comcast, xfinity or on my phone on a plane. >> it depends how you're accessing that content. if you're paying espn $7 a month to watch it on a phone, and if they can generate the same type of revenue as they can on television no consumers shouldn't care. that's the question. we know what the world looks like with the cable bundle today. there are outcomes in the future that could be just as good. directv might be in the same place. nobody feels confident about that. >> we'll leave it there. check please after this. thank you. d s noy with t cust servi

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nousm in otori youswa' >> check please. >> we have yet another day of super tight ranges on the s&p 500. 1% within the past 34 session and that's the longest streak since 1995. gold, this is the winner as markets go sideways since mid-december. gold has been an absolute winner up 7%. another winning day for gold today. >> tomorrow on cnbc kevin plank at noon on scott's program. he'll be talking about a troubled stock but not a troubled endorser. tom brady is one of their signature endorsers. you say he has a sleep wear

line? >> yes. basically pajamas. "closing bell" are athlete recovery system. clothes you wear to sleep. any clothes you wear to sleep -- >> he should get a lift from brady's performance last night because he's now become a true icon. >> my check please is four words and five seconds. don't take us out. i want to show you this a special moment on the nycs floor. army staff sergeant reuniting with his wife after serving a year in kuwait and iraq. he was deployed shortly after their wedding and his wife had no idea he was back in the states until he showed up on the floor on the new york stock exchange last hour. >> that's a surprise. >> you know i thought we were talking about ads. i don't even want to talk about

an ad what hyundai did last night was spectacular. i know it was an ad technically but what they did. whether you like hyundai or not that was nice. >> very well produced. >> i would love to see how they did it. >> very cool. thanks for watching. "closing bell" starts right now. hi, everybody, welcome to the "closing bell". i'm kelly evans at the new york stock exchange. >> i'm scott wapner. president trump says tax reform could get done earlier than health care. and help wanted at tiffany. the jewelry retailer ceo stepping down late yesterday and the company saying it's concerned about itsle financial performance. we'll look at whether there could be other reasons at play here. >> bank of america, jpmorgan, retail investors are buying these every month. now there's a new small cap name ma