signs up for that. >> a final trade, joey? >> would be, again, as i said yesterday long amg technology. >> up about 4% after a good quarter. nobody owns this, only industrial nobody owns and certainly buy it, e her son electric. >> gold continues to go high. >> a little bit of a move. highest move in three months? >> yep. >> thanks so much for being here. "power" starts right now. >> thank you, scott. more on the big interview of kevin flank. on the menu, the dow and nasdaq at record highs and a legend sending a big market warning over president trump. the details on that coming up. the growing backlash of the president's travel ban. could bit the tip of the iceberg for silicon valley? obama 5.0. must see pictures of the president hanging ten with a famous billionaire. "power lunch" starts right now.

♪ welcome to "power lunch." i'm michelle caruso-cabrera. off the record highs that melissa was talking about earlier in the session. we are seeing a big move in bonds. the yield on the ten-year hitting the lowest level in almost three weeks. 2.282. tyler? >> thank you very much. welcome, everybody. i'm tyler mathisen. let's kick off with more on the record stock market rally losing a bit of steam here. bob pisani on the floor of new york stock exchange. bob? >> tyler, new highs in the dow and the nasdaq. not the s&p. we have lost steam intraday. part of problem is energy stocks and going on with oil all throughout the morning in the downside and exxon's been straight down and $91 in the beginning of january and

straight down for five weeks now and chevron is not helping. problem number two, pharma. mercks and pfizers have been performing better recently. but they, too, have rolled over. they're critical components in the dow jones industrial average and then you have, of course, melissa pointing out the bonds moving to the downside and usually bank stocks moving down and what happened. jpmorgan nicely in the green, all the banks were throughout the morning, now also in the red. one bright spot, apple off of the highs and one point up almost $2. guys, this's a big move to the upside and helping. materials on the downside. vulcan and other ones, big infrastructure plays, disappointing on the earnings. back to you. >> thank you very much. let's bring in paul hickey and tim seymour. guys, good to see you. paul, i'm going to start with

you. technology is underpinning. s&p tech seeing the highest levels since 2000. highest levels since 2000 on the smh. what do you think about the strength of this particular sector? >> well, i think the strength is for good reason. the sector, this earnings season, over 80% of the companies in tech seccing to exceeded forecast and far and away the best of any sector. they're responding to the surprises and hitting multi-year in the case of the tech sector multi-year highs and i think it is just such a different world right now from where we were 15 years ago in the sector. these are companies that have gone through those growing pains and now they've matured, been a consolidation in the sector and they're making real money. i think the financials are where the technology sector was about seven years ago.

and they had their crash in 2007. and where we have gotten through a lot of overcapacity and financials are looking good going forward. >> you know, tim, on the note of financials, we have seen the ten-year bond yield bound. is that a concern for you? >> i don't think that's everything. i think the removal of regulatory pressure's an important part. the housing market is a tail wind. 50 bips higher is a good thing and getting more people in the mortgage market. i think the yield curve made it more profitable to lend. granted the yield curve flattened a little bit and more concerned on the dynamics of the fed and are we getting this that's something in the last couple of days wondering, kashkari out this morning countering the fed last night and they be more dovish than people expect for march and the curve pricing in not a lot of fed in the short term. so i think this is a very

important dynamic. markets perversely are excited by higher rates for more growth and i think that's part of why the market led the way even before growth. >> paul, why do you think the ten-year is moving at 2.3? what are bondholders spooked about? >> there's multiple factors. we have issues in europe, election worries there on when's going to happen over there and causes people to reign in risk. china report a drop in reserves last night. well, this's not a pressing issue but it is an issue for the background and makes people more uneasy with things and then concerns over whether or not trump's policies of, you know, rolling back regulation, of cutting taxes will take effect. >> actually happen. >> and the delay. but i think, you know, that causes people to be more worried but what we have seen in the rally so far is two fold. not only just optimism over trump but pricing in what would

have been the scenario under a clinton presidency and more regulation so some of this gain, it doesn't all have to come back seeing a delay in the -- in the delay in the legislation. >> tim, make me some money here. where should i put some cash right now for the next six months to a year? >> well, i think if you want to reach out the risk curve risk, the retail sector is overdone in terms of sentiment. you don't have to go for the bombed out apparel plays. looking at gap which is somewhat controversial and a great balance sheet, probably buying back shares and i think increased dividends and the comps are good. looking at the home improvement retailers, home depot, lowe's, sherwin williams, you have a case of housing where residential private investment is still, you know, we are at 30-year lows in terms of what people are throwing in their houses and when labor of a cost input is a big deal, i think

they have top line growth to counter that and the trades still work and then defensive trades like utilities, mlps i think are all season trades. >> do you have any quick thoughts on underarmour? >> i think -- look, we are a case of the apparel sector, everybody loved the tail winds in the sector a year ago. i don't think those changed dramatically. kevin plank articulated a company hungry to get back to both cost control and not growing too fast. i don't think you have to do a lot here and executive changes. i would be cautious in the short run but a great company. >> all right. folks, thank you. >> thank you. >> appreciate you being with us. general motors, a big loser on the day. shares down more than 5%. earnings bet estimates but concerns of a border tax and disappointing sales overseas spooking investors. mike ward is an auto analyst with a buy rating on general motors. mike, was this report as bad as the stock market seems to be

painting it? >> no. no way. when you look at it from a financial standpoint, gm delivered what they needed to do. record results in 2016. ended 11 billion on the net cash. their pension liabilities came down. so i think from all aspects of it, gm's financial results were solid and don't justify a 5% selloff in the stock. >> so what -- if you can grasp at something out there, what is the reason the stock is off 5%? i read some place that it was concern over costs going into the future. concerns about the european and south american markets. i don't know. what? >> a lot of things. i think when you look at the grand scheme of it, there were a lot of questions about the border tax and so certainly that's an issue. there were about $200 million or so of costs of autonomous driving. everybody's caught up in the buzz but that's about safety and from my perspective, gm should be investing about a billion dollars a year trying to improve the safety of the vehicles and

if that comes through autonomous drooifg, that's a plus. >> let's talk about china. now the largest market. how much risk is their business in in china if trade tensions escalate of the united states and china? and, for example, the chinese government says, effectively, to chine chinese buyers, don't buy cars from american company? >> gm is in china with self funded joint ventures and it is -- imports very few vehicles in china and irrelevant. this year, they made $2 billion, in 2016, after tax from the chinese joint ventures and self funded so gm's financial risk is minimal. >> mike, are you whistling past the graveyard? they manufacture there but i think americans think toyota's manufactured in the united states. >> no. >> from the japanese car. from a japanese company. you don't think the chinese company says general motors is

an american company? don't buy in china. >> they're partnered with shanghai automotive and that's a chinese company. >> they're cutting off their nose to spite their face? >> yes. >> effectively. what do you look for this year for general motors and with specifically focus on north american auto sales? some people think they may have peaked. >> they thought that two years ago. we have had two record sales years. the most likely scenario is we're going to be somewhere between 17 and 17.50 million units. they made mistakes in the past and pushed it above. discounted price too aggressively this point in the cycle. i'm hoping for a 5% downturn. their break even point is reduced 50%. a 5% downturn you don't see much of an issue from an earnings standpoint.

they're different companies than in the past. >> you like to -- you'd like to see this stock go to 35. 45, is that a 2017 target or what? >> 12 months, yes. >> 12 months. >> general motors, the stock is volatile. over 12 months, ten moves where it traded down 5% or more in a two to three-week period and rebounded 7% or more over the next two weeks. >> thank you. we'll see you again. >> thank you. news alert in the bond report. government borrowed money for three years. rick santelli, how eager were investors to lend it to them, rick? >> you know, they were kind of eager. they could have been more eager. this is the first of 62 billion in supply kicking it it off at 24 billion in 3-year notes. the auction grade i gave it 1:00 eastern, c-plus. charlie plus. the metrics all about average. yield at the dutch auction, 1.423. might have been the best news on

the auction considering that was a smidge below the offer side of the one issue market. 2.78 to cover. 57.2 on indirection. best since may of 16. primary dealers take 34.7% of the auction. so c-plus. tomorrow will bring us 23 billion in 10-year notes. melissa lee, back to you. >> thank you. underarmour shares under pressure. the stock down 50% in a year. ceo defending the stock a short time ago. we're digging in ahead. barack obama getting for aly. the former president like you never seen him before. "power lunch" is back if two.

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welcome back to "power lunch," everybody. kevin plank defending his company and stock down 30% this year. plank sitting down exclusively with scott wapner.

scott, one of the things i thought was most interesting is pressing him several times whether he's buying his own stock. he either didn't want to answer, couldn't answer or just didn't want to go there. >> i got the feeling he wasn't, though. i was referring to when jamie dimon of jpmorgan stepped in and bought his stock and gave a lift to jpmorgan when financials and the overall market needed that boost of confidence. but plank wasn't going there. it's a tough couple of quarters. guys, as you know. for under armour. growth is slowing slightly. the stock is hammered. you alluded to the fact it's half of the value it was just a year ago. mr. plank saying that the company does remain on track to catch some of its competitors. here's what he had to say. >> this company plays offense. like this company throws punches. it's what we do and continue to run again. this business doubled in the last three years.

xae companies that double, there's things that happen and this is not an excuse. it doesn't mean that the players changed or the team is different. the outlook or the ambition or the upside is any different. >> if anything, kevin plank saying that they can maybe control the narrative around the last quarter and kevin plank admitting maybe they have to win back some of the investors selling their stock. >> i'd like to think i never needed to be humbled but we all probably get over our skis a little bit and always good to have our wings clipped. i feel wiser. i don't believe there's surprises in life. it is -- it is what we do is that there's always signs for things and the lessons learned from where we ended q-4 in 2016 to the thing that is we could have been done are -- they're not easy or there. and they're definitely -- it is

chess, not checkers. so we need to be thoughtful approaching 2017 in the same way. >> yeah. clearly still wanting to play offense, trying to control the narrative. but guys, as you know, the stock market itself has helped to find the narrative over the last couple of quarters last few months, if you will, because the stock is hammered on each of those earnings reports and a tough go of it for kevin plank and under armour. >> let's bring in analysts at oppenheimer and contributor to discuss more about under armour. towards the end of scott's interview, they talked about tom brady, jan. he said people counted out tom brady and that was a mistake. don't count out under armour. >> i wanted to say tom brady is a friend of mine and go through the routine, you know? i think kevin is a fabulous executive. under armour is a fabulous company and coolest thing on the market and who plays 50 times

earnings for the rag trade? >> you're asking sarcastically. >> i'm telling you that i think under armour's growth slowed down. i think its growth will be hard to get back because they're already a $5 billion company. they're competing in a market where value is more important today than it was. where we're seeing plenty of competition, where there's the $33 billion giant they're also competing with who has a better price point and just as good of a product so i think it's a fight and i think, you know, you should not compare yourself to tom brady no matter what kind of fight you're in but especially this fight. >> with a 46 pe and this sort of environment and disappointed investors again and again. i'm curious your take. when kevin plank says he wants to control the narrative better, as an analyst, did you feel blindsided? do invest to recalls you talked to feel blind sided by the surprises and then the stock reaction and has that burned

invest to recalls to make them less willing to take a chance here? >> for sure. no doubt under armour is a fantastic brand and really a phenomenal company. but it really reminds us of this classic growth story that has had a fantastic growth trajectory without necessarily investing in the business adequately and now just as top line is maturing, investments are picking up. last week, the company did not address the 18 goals for 7.5 billion in revenues that they confirmed just a couple of months ago. now we're talking about 10 billion at some point which we think is a 2020 event at best so competition is something we're certainly watching very closely. >> jan, is there too much workout wear? i get so many catalogs. under armour is more of a men's brand than a women's brand but there's so much more workout

gear. >> i buy it at tj maxx. >> and you don't jump in to making men's casual wear which we saw them do this past year when you think your growth and base business is fabulous. so, they went into shoes, athleisure i'll call it. if you're knocking the cover off the ball in the base business and didn't have way too much competition, i can go to target for c9 performance wear and about as good of nike and under armour and pay a third or a quarter of the price there. it's out there really anywhere. >> you know the history of the company better than i do but i recall it's been from time to time extraordinarily aggressive in their sales projections. in other words, what their goals are. who can blame them for wanting to shoot high? but he said he had doubled the business in the past three years. as i recall, he had very aggressive targets. are they in some ways the victim

of their own talk? >> i think if anything maybe they're the victim of their own success rather than their own talk. they had 26 consecutive quarters of 20-plus percent revenue growth. and that streak was just broken in the prior quarter. and it's sort of goes to push back a little bit on jan's point, okay, jan. so they're not growing 20-plus percent for 27th consecutive quarter but what they are doing ain't all that bad. they set their own expectations so high so they in many ways are a victim of a bar being especially high but, man, if kevin plank was sitting here now, he would probably take issue with the characterization that their growth has somehow slowed dramatically and that the story is over because the overall retail landscape is as dreadful as it is. >> you know, fair point.

but at the same time, the stock is going through a rerating even if the growth is still robust. it's perhaps not as robust as investors are pricing it to be. anna, how far are we along this re-rating? >> so as we look at the guidance that this company just laid out last week, we do think revenue expectations up only mid-single digits seem conservative to us. but then, to get to double digits for the year does imbed some acceleration as we go through '17 and we're typically pretty skeptical on the hockey sticks out there, especially if apparel in north america which is the largest portion of their business continues to be choppy. >> investing is a big issue -- >> sentiment is so, so negative. i mean, wow. it is one of those moments where everybody is just so down on something you start to wonder if finally this is where you find the bottom, right? nobody has said one nice thing

for the last six or seven minutes about this company. >> it is hard to think of it being negative sentiment at 40 or 50 times earnings. >> good point. >> but it was higher before. >> a lot. >> scott, anna, thank you very much. i'll ask jan to stick around to talk about two retailers for a moment. one is sears. it's of interest to me. the papers today saying "wall street journal" warning signs mount on sears as the cost of insuring its bonds has reached new highs. while the stock yesterday hit a new all-time low. is sears the next radioshack? >> we won't compare eddie lam pert to saerss, are we? >> no! >> i think it will be restructured, whether it's a bankruptcy filing or some other thing. over the course of 2017 to 2018. i think we are going to see a lot of stores close, both on the sears side and k-mart side and selling assets if they can and we have seen them keep going

putting more and more money in from the loan side from esl. so i look at it and i say they sell the property. put it in the fireplace and up the chimney. borrow money and put it in the fireplace and goes up the chimney. they're burning up the company. i don't see how do that where retailing is hardest it's ever been. >> for closing stores, they have a lot of options because for the stores they own outright not collateral against debt, they have 190 available to be sole sold and leases according to the company are leased under market prices and they could sell the lease and make some money on it. i mean, are we underestimating the options that they might have? >> yes. we always are because eddie always comes up with another way to make it happen and may well be that they keep doing something to keep the game going but they're consuming the asset base and we're not seeing anything come back out. >> yeah. >> i know you look at stocks. do you look at bonds?

>> i do look at bonds. >> i mean, any value in these sears bonds? >> i don't -- i don't see value in the bonds. i don't see the long-term viability. >> i want to ask you about coors. decimated. cut the 2017 outlook. disappointing u.s. and european same store sales. why sit that kors doing worse than coach? if a lot of head winds that kors management is citing like declining mall traffic, same head winds of kors. >> i had coach on the upside and kors on thedownside. i say they have the same problems, probably have the same solutions and they're pretty far behind where coach was only getting that done. pulling back from the department store space, getting less in the off price space, less into the outlet malls isn't something they have started to do. coach doing that for almost three years now since changing the product. the other thing going on is that the consumer taste is moving

more toward classic coach and away from -- i hate to use the word euro trash but the blingy look in kors. if you don't want that from them, what do you want? they have to go through to that to get to where i want to buy them. i think they have great equity from the point of view of the customer. >> jan, we may want you to weigh in here on a fashion moment. barack versus branson. the showdown of the former president and the billionaire. there it is. the fashion look for mr. obama. that story is straight ahead. say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $6.95 per trade? uhhh- and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering?

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hello, everyone. i'm sue herera. in a historic vote, the senate has confirmed betsy devos as education secretary tear with vice president pence breaking a 50-50 tie. it's the first time a vice president has had to break a tie on a cabinet nomination. two republicans joined 48 democrats to vote against devos. homeland security secretary john kelly saying he expects a wall on the u.s.-mexican border to be well under way in the next two years. >> we'll not build it all in an afternoon. so we'll build it in the places

that the people that work that border say we need it right now. and if you can believe this, a cheese snack that looks like the slain gorilla harembe sold on e bay for $100,000. last year, the gorilla was shot by handlers at the cincinnati zoo after dragging a small boy boo the enclosure who fell into that enclosure. the seller said he found the snack in a bag of flaming hot cheetos. the bidding began at $11.99. >> $100,000 for that? >> $100,000. you can't make it up, ty. >> can i meet that person and sell them something? whoever they are. >> i feel like we should buy a -- a case of flaming hot cheetos. >> i have goldfish that look just like nemo. so, you know -- >> excellent.

i'll connect you to the seller. >> thank you, sue. former president obama flying high on civilian life. the pictures of british virgin islands where the obamas are vacationing. branson and mr. obama with fun in the sun. could mr. obama learn to kite surf before branson learned foil board sur ling? don't know quite what that is. the former president did beat the billionaire. to be one person for a day, it might be richard branson. he has a lot of fun. >> probably a good life going on. >> a lot of fun. >> private island. >> yeah. i mean just private island. >> always smiling, always smiling. >> nothing to frown about as a billionaire like that. it's a constitutional show down and silicon valley is on edge. do you fight the president? fight for talent? that's coming.

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welcome back to "power lunch." the dow holding in the green. it's just off an all-time high.

take a look at the dow heat map. as you can see, roughly 50-50. boeing leading the way. merck, chevron, the biggest laggards. >> president trump calling the immigration order common sense. this comes just hours before a federal court is expected to weigh in on the president's travel ban. big tech say it could have a big impact on jobs. let's get to josh lipton with the story. josh? >> well, melissa, 127 companies have now signed a legal brief opposing the action including giants like apple and microsoft. but the president made it clear this morning that he is not backing down. >> we're going to take it through the system. it's very important. it's very important for the country regardless of me or whoever succeeds at a later date. i mean, we have to have security in our country. >> but it's not just this executive order. there could be a bigger immigration battle also brewing between trump and tech.

specifically, the h-1b visa program to offer u.s. companies a way to attract skilled talent of overseas when americans aren't available. a maximum of 81,000 are granted annually with some 1 million in the country right now. while they represent less than 1% of total u.s. jobs, goldman sachs estimates they make up about 13% of tech related jobs. and within tech, the top recipients of the visas are consultants and outsources for i.t. services. top of the list is infosyn, cognizant and okay cent chur. tech titans of microsoft, google and apple use relatively far fewer, not even the top ten and one exception there is facebook. reuters reports that last year more than 15% of that company's

u.s. employees used a temporary work visa. facebook telling cnbc in a statement, we are assessing the impact on our workforce and determining how best to protect our people and their families from any adverse affects. the debate is heating up because president trump apparently considering another executive order that would overhaul these work visa systems. guys, back to you. >> those being the h-1b, correct? >> correct. he's considering at least making big changes to that program. certainly he could have a fight on his hands here in silicon valley if he does make the changes. >> all right. thank you very much, josh. let's pick up right there on immigration. this order, is it just a tip of the iceberg for silicon valley as josh sort of hinted there? let's bring in larry kudlow and stewart verdari. his firm advices several silicon valley firms fighting the executive order. welcome to both of you.

>> thank you. >> let's separate out what might happen with the worker visas from what's going on and at issue right now and that is the suspension of travel visas for people from seven specified countries, mostly countries that basically have no functional government. stewart, from what i have read, the number of people affected at the 120 companies that are part of the amicus brief is incredibly small. like, in the tens. maybe -- >> well -- >> maybe 100 total. >> i think this is not about the employees and spouses affected but also how they're perceived around the world. they want to be seen as international companies and not kind of part of ugly america so i think it's more than just the small number of employees focused on. i have a lot of sympathy of former colleagues that the homeland security prying to make sure we bring technology to secure the border and has to be

a balance. if you're a tech company, you're worried about the signal that this -- why they weighed in. >> couldn't the companies worried how they appear in markets abroad, couldn't they explain that the country is concerned about who's coming in and we want to pause and wait for a few months here, 90 days or 120 days, whatever it is in various parts of the ban to get things figured out? can't they explain and people understand that? >> sure. it is not their job to explain u.s. policy but to implement it and recruit people around the world so again i think this is a question of how the u.s. is perceived around the world. you want to bring in best engineers for product lines and also not just tech companies. selling prak or thes, agricultural products and the like, you want to be able to bring in customers and part of how we are trying to make sure that the american -- >> stewart, i want the first question. how many people when they say, look, we are going to take green

card holders. larry, in a second. people with visas. how many people did microsoft need to bring inn yemen in the next 90 days? >> i don't know. >> do you understand the point, though? >> sure. >> only talking about tens. temporarily. >> right. >> we have dealt with the green card holders. visa current holders are okay. why this -- i don't get it. >> why -- >> to me it's disingenuous. larry, go ahead. >> i understand, stewart, worried about america's image around the world. let me just say this. america has to be strong regarding its national security. >> that's right. >> mr. trump, president trump, i think is focused laser like on that. i happen to agree with him. okay? as michelle said, green cards, fine. visas, fine. if it's legal. fine. no problem. and let's not conflate the h-1b situation with a potential terrorist situation. if you say to me, the roll-out

is sloppy, the execution is sloppy, the explanation is sloppy, yes. i buy into that. it's early in the game and so forth on and so forth. general kelly will fix all that in due course and homeland security is a good agency. but, but, but, but, but, this is about terrorists, this is about isis, al qaedas. they went to get in here. they're adept at the refugee stories -- >> so this -- >> and we -- >> 120 -- >> nothing wrong -- let me finish, please. they are adept at getting through the rules. we have seen this time and time again. here's my point. stewart, you worked in homeland. >> i did. >> why not a moratorium which many officials have argued for, comey said this, for heaven's sake. a moratorium. we don't know who the people are and folders and information. it is a narrow interpretation from a handful of terrorist relat related countries. >> not the refugee program. i'm talking about the visa

process we rebuilt after 9/11, homeland security department, state department and intelligence departments to have good information on people applying for visas. >> right. >> we built the -- >> trump agrees with you. he said that a million times. >> people agree with the things the executive order to do. build the exit system to leave on time. an enforcement capability and we need if possible more countries into visa waver program cooperating with us -- >> so i want to jump in -- >> i want to read -- >> both of you on this. the important point to me is 120 companies signing an amicus brief here. are they so worried about this particular suspension of travel that goes for 90 or 120 days? or, are they wor ied this is a stalking horse, a trojan horse for a bigger crackdown -- >> can i read you the amicus

brief? quote, the order -- this is from the techie companies. the order inflicts significant harm on american business, innovation and growth. it affects a sudden shift in the rules of entry in the united states and it's inflicting harm on the u.s. companies. why don't they even talk about the terrorist threat? they are conflating the h-1b visa situation with a terrorist protection program that mr. trump, president trump is -- and they need to look at themselves and think hard about that because there's too much libertarianism -- >> that's how it began. what we're talking about the is -- >> nothing to do with disrupting business. it has to do with national security. >> absolutely. are they concerned, then, stewart, that this is a stalking horse for something that those companies, many of whom you work with, would feel is more draconian and really hurt their business? because here we're talking about tens or dozens of work earls. >> i think it is a worry about

what signal it sends and, genl, the executive order not only the seven countries but it says we should have a review of every visa issuing company to be coop rating with us and threatens them with suspension, as well. i think, again, i have a lot of faith we have built in so many precautions over 15 years, bio metrics, watch lists, mare marshalls, security standards, better travel documents when they do this review they'll find many cases the countries are doing the right thing and inventivize them of global entry, pre-clearance. >> we want that, don't we? >> that's right. >> why were they identified by the obama administration? the seven countries already identified by the obama administration of a terrorist risk and higher level of examination already -- >> come on -- >> if they were identified -- >> they were identified. we know it's not. you know it's not that good and there's no harm in a 90 to 120-day moratorium which is all

that it is. i have some advice for the companies you invite. here's my advice. help trump get his business tax cuts through. that's what they want. that will help their businesses. that will help the country. that will help them repatriate the overseas cash, not making the wild-eyed accusations about a terrorist threat that they won't even acknowledge. >> they're using political capital in this particular debate. i mean, right? stewart? >> i agree with you on that. that's definitely a need but i think you can do more than one thing at a time and i think i have a lot of sympathy for the order and what it's meant to do to make sure we're reviewing the security policies to make sure they're top notch and we're leaning on countries to do both with us. vetting the travelers and always improvements to be made and i think the question is, is this the right way to do it? court process plays out, they'll

revisit this for new recommendations, more security in place, build out the pre-clearance. >> this is good. this is good. >> that was the point. >> last thought, stewart, advising these guys, tell them to urge everybody in washington to get the business tax cuts done first. >> there is no one -- >> so noted. >> not third or fourth, get it in first. >> pivoting! >> tell them to let the national security agencies to handle terrorism. >> we have a debate. >> we have agreement there. >> thank you, stewart. thank you so much for being with us. larry, we appreciate it. you are artful. big interview coming up today on "the closing bell." catch representative jeb hensarling here on cnbc. >> thank you. a vote to define and shape the future of education in america. the fallout ahead. plus, why buying a home is

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welcome back. consumer staples and technology the best performing today with tech hitting a multi-year trading high earlier. touches the highest level since 2000. autodesk and nvidi and citrx, as well. apple also hitting a new high.

that stock along with boeing and ibm, the biggest point contributors to the dow so far today. back over to you. >> thank you. one of wall street's most influential and reclusive warnin investors is out today with a warning saying he's worried about the market. clarman saying that investors focused on stimulative tax cuts and mostly ignoring the risk of american first protectionism and saying it's high and we want to listen to him, lost money in one year of the 34 years in existence. he's been a successful hedge fund manager and right now putting his money where his mouth is. 30% in cash. >> a republican? >> donated to both sides. backed hillary clinton in the most recent election and given money to both sides of the aisle

in the past years. >> his letter is also raised alarms about etf and index funds. >> exactly. >> it's a complicated argument i won't do justice to but that so much money flowed into them that the pricing of the stocks in there are out of whack and a danger there. >> right. i mean, i think the notion's essentially that a lot of money goes in etfs and so when you -- >> chase. >> exactly. all of them move in the same direction. up or down so that's creating problems here. >> herd mentality. >> exactly. >> yeah. >> herd. coming up next, a big warning for anyone in the market for a new home.

we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $6.95 per trade? uhhh- and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee. if you don't like their answer,

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something just happened in housing that hasn't happened in seven years and not good news in the market for a new home. dia diana olick has the story. >> it's triple threat. incomes are not keeping up. as a result, housing affordability dropped to the lowest level since 2010. it now takes just over 22% of

the median income to make the monthly payments on the median priced home. that's not the highest we have ever seen. if 2005 at the height of the boom it took nearly 35% of the median income to buy the median priced home. but remember, this is all based on math for a 30-year fixed mortgage and back then people were using, shall we say, creative mortgages with no money down and teaser rates. today, the vast majority are 30-year fixed and that's why looking at the gains now is much more important. nationally, monthly paymented increased 10% in the fourth quarter of last year alone. that's a median half of home buyers, seeing a bigger hit to the wallets and half smaller and then drill it down and changes are more dramatic. new york, dallas, miami and boston have all seen bigger gains in monthly housing payments in the three months of last year. than the rest of the nation. the gains most dramatic the end

of last year because mortgage rates took the big leap after the election. so far, we have not seen rates move much higher and home prices are not slowing down. more online. back to you. >> thank you. disney's on deck. out with numbers. earnings after the bell. the most important metric investors are watching. this is a mobile trading desk, so i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices. the market's hot. sync your platform on any device with thinkorswim. only at td ameritrade.

welcome to the second hour of "power lunch." two hours until the closing bell. here's what we're watching right now. record highs again. however, the dow and nasdaq losing steam. making magic. disney's numbers after the bell. what to do with the stock from here. and forget the immigration and the border adjustment tax battle. historic and divisive vote today to shape the direction of education in america. the repercussions ahead. check out the movers right now. vulcan materials down about 4%. earnings at the infrastructure outfit missing wall street estimates. but the company does say its full-year forecast looks solid.

shares of church & dwight up almost 4%. beating profit and revenue estimates. cardinal health rallying more than 3%. mixed quarter for that company beating on the bottom line, missing the top line. up about 2.5%. nasdaq hitting a record high. the index up about 6% already this year. let's go to bertha coombs at the nasdaq. ber that? >> thank you, ty. it's a large cap tech driven rally for the nasdaq. small caps are flat for the year but both nasdaq and the nasdaq 100 have gained nearly 200 points in just the last month. and chips are a big reason why. the philly sox index at a new high today of 16 years. invidia of an all-time high ahead of the earnings later this week and earnings are a big part of the story here with two

thirds of firms reporting now. the profits are up about 11.5% from a year ago according to thompson reuters, second best growth within the s&p. and after reporting strong iphone results, apple is back at a 18-month high and it's now within about 2% of its all-time high close of $133 a share. about a dollar away from that earlier today and then impact, guys, apple right now responsible for about a third of the nasdaq 100's gains here yooer yoear to date and talking about america first, it's the large caps that are driving things. >> absolutely. bertha, thank you. disney, the big earnings report watching after the bell. up 15% in the last 3 months. julia boorstin is here with what to watch for in the report. julia? >> first thing is ceo iger's outlook on the health of espn,

biggest piece of the media networks. last quarter iger said espn benefitting from a moderation of losses from skinny bundles and growth from new platforms so we're looking for update on those numbers and projections for the upcoming hulu tv service. second, the succession plan. with 16 months before the contract expires, will he announce plans to extend his contract or any update on the hunt for his successor? third, the movie studio. with the stock's recent run on the success of "rogue ones" and others, does the studio have enough hits ahead to justify the company's valuation? creating new hits and franchises is key to driving all of disney's dwigss. of course, looking for any commentary on president trump. iger's on the president's economic advisory council and did not attend the last meeting due to a scheduling conflict. >> thank you. what do you do with the stock right now?

let's bring in two analysts cautious on disney. brian wheezer and tony wybel. brian, we'll start off with you. in terms of sentiment, are you perhaps, i mean, sentiment hit the low at the downturn and the cfo gave a somber outlook for 2017. the stock is up 5% in 2017. looks like investors may be willing at this point to bet that some of the bad news is already in the stock. >> that's quite possible. however, i did a massive downgrade on almost every company i cover. price targets across the board down because risks are higher now than they were three months ago for point of reference. and so, when you incorporate it in the valuations, price targets come down. >> what is three months ago? what are those risks? >> the election. >> because of the election you took everything down across the board? >> more uncertainty of fiscal

policies are, the growth of the economy than there has been. and i think that the market behaved irrationally. this is more of a macro call but i think you can't ignore it with individual securities. >> saying uncertainty around gdp growth, what is in your model? what are you thinking of as gdp growth and the risks to it that would cause you to downgrade disney to a sell rating? especially of a possibility of corporate tax reform? >> yeah. absolutely. so lower taxes are something i would incorporate in every model for every company i cover and total market risk, the fact is we don't know what fiscal policies will be enacted, if tariffs go in effect, if trade wars will become broad and more uncertainty in terms of total overall economy and impact advertising, consumer health, et cetera. that has to be accounted for. >> all right. so, tony, are you that dour on

the prospects or could disney stand out not reporting, for instance, subscriber losses that people thought it might? >> there's good reason to be pessimistic here. there's a huge disruption in unsustainability in the cable bundle. there's guys that are on twitch and collectively they draw more viewership than some major sporting events. this type of content has to be inserted into the traditional bundle and as that happens, i think you will see incremental sub losses that the street is forgetting. i think it is as disruptive as the remote control and pessimistic in a different direction and i think that the studio has been there as a pillar. it's not going to be there in '17 so a lot of run you are seeing is people looking past '17, looking at '18 and a lot can happen between now and '18. >> not there in '17 because there's not a "star wars" coming out in '17?

one with "rogue one" at the end of -- >> fewer number of films and questionable films. "cars 3." you also have pirates of the caribbean 5 and there's been some issues with that franchise. >> you didn't like caribbean 4? >> i try to leave my opinions out of it. johnny depp performing as a brand as of lately and the film is wrapped for sometime and sitting on it just doesn't give us a great feeling. >> how much risk to the disney story? they have international locations. he's sure to be asked about trump on the call. >> there's a good question. it's important to understand there's another side of the coin and protectionist. does that end up costing you abroad? i think some of the questions is china. you know, how does possibly the ramifications in the relationship with china affect that part? and i also think there's some other things and so much around espn and politics and also have to look at the u.s. parks which have gone through a period of

high price increases and seen signs of moderation and attendance growth and does that catch up to them? there's a pension benefit that i think people forget about that might not be there this year. >> thank you. tony and brian. don't miss the exclusive interview of bob iger today at 5:45 p.m. eastern time. all right. head lines crossing from the white house president-elect sean spicer's briefing. we have the details. ayman? >> reporter: hi, tyler. sean spicer is briefing the media right now. a couple of highlights so far from the comments. he said that japanese prime minister shindo abe scheduled to be here at the white house on friday is also going to extend the visit going to florida with the president. we have seen reporting before the japanese prime minister's trip expected to talk about jobs in the united states, coming from japanese investment in to the united states. we'll see whether that meeting and the session at mar-a-largo has more information on what

specifically investments the japanese prepared to make new here in the united states that press secretary also talking about the confirmation of betsy devos happening earlier today in a dramatic senate vote. it was a 50-50 tie. they brought in the vice president mike pence to break that tie. spicer here taking the opportunity to say that the democrats are engaging in childish obstruction tactics here. and saying that they need to move forward on the rest of the president's cabinet. real frustration here at the white house, guys, that the president doesn't have all of the cabinet secretaries in place and blame the democrats for that. thank you. >> thank you for that. well, the trump rally as we call it marches on with the dow and the nasdaq hitting new dra day highs today. the dow up 10% since election day and the russell 2000 jumped more than 13% under the trump presidency. should investors put more weight in small or large caps? let's bring inn ernesto and lets

begin with you. i want to start with the overall sort of macro market view. the hedge fund manage earl who was cited claman, i believe. >> yeah. >> said something that i think you kind of agree with, the idea of so much positive anticipation built in stock prices having to do with tax cuts, infrastructure spending, less regulation, and that may be particularly in the large caps we have -- the market, not we, the market has overlooked some of the snags and hiccups and hairballs to be in the process. >> yeah. that's pretty much our view, tyler, that 100% of the potential positives that have been announced of the measures announced by the trump administration priced in by the markets and very little potential negatives of trade wars and immigration and perhaps

even geopolitical risks priced in and see the overall market as a fragile spot right now. >> what's the implication from that hypothesis or framework to where i should be putting my money in large cap stocks today? does it mean i want defensive stocks? do i want stocks that are solely u.s. or what? >> the consensus has been to invest in pro growth, pro cyclical and we think that the market overlooked the defensive stocks. we want to be exposed to ek tills seeing the potential positives coming through and in a defensive, lower risk way so companies like verizon, american express, c vs, traditional staples and not overpriced. this is the key risk of the stocks driven to very high valuations in the last couple of years and looking for underpriced, low-risk stocks to put our money with stable

operating earnings models and the like so it's a large cap is that true with a low risk tilt to it. >> brian, to choose between large and small cap, what would you do right now? >> right now, we prefer small cap. i feel like those companies are more exposed to a lot of good things happening, potentially coming out of the trump administration. minimized to some extent versus large cap bad things. small cap is domestically focused and higher tax rates and see a benefit there so we feel like the risk/reward is better in small cap than large cap and where you want to be and i feel like earnings will be pretty good going forward barring an extreme import tax. >> we're showing mastec. it's up 150% in the last year. >> it's up a lot. it was going through a rough patch going through q2 of last year. they were missing earnings regularly because of their transmission and electrical

equipment division. >> i guess they got over that! >> they have gotten over that. they had a really good q3 and q4 guidance, as well as -- >> can it get gooder? >> i think it is good. last week they had the rover pipeline they're working on with energy transfer partners approved which is good for earnings for 2017. we feel like there's a lot of upside. in 2018. as natural gas infrastructure gets built out as well as other electrical infrastructure throughout the united states and it's trading at around seven times 2018 ebitda earnings. >> when markets are sort of fragile as you put it, is there a place for gold or gold miners? gold is outperformer year to date even compared to equities. >> not in a low risk focus because they tend to be very volatile and looking for companies in the large cap space dmixally focused such as cvs and

verizon and participate in a ral rally and don't have the risks of trade war or tariffs coming in through the imports. large caps and not necessarily very volatile stocks. gold miners are some of the most volatile in the world. >> on health care, the white house said that trump is more negotiating prices under the medicare insurance program which would be a change. >> wow. >> well, that's -- >> a big change. >> a week ago it cam out of a meeting with all the pharmacy ceos and that was not a -- the topic that day. so, that's part of the uncertainty. the message is not necessarily consistent day-to-day basis and that's why we're not overly optimistic. >> ernesto, thank you. brian, you, as well. appreciate it. >> thank you. here's what's coming up. a rough year nor hedge funds. could things get worse under president trump? a dramatic vote in the

senate confirming betsy devos as education secretary. netflix, is it killing the restaurant industry? that and much more coming up. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.

welcome back. dow and nasdaq hitting new highs today. the three major averages soaring between 7% and 10% since election day. a lot of people made a lot of money since then. however, one of the so-called smart money seems to be having a tough time in the record setting rally. check out this headline of the double digit losses happening there and also at the tiger cub firms, as well. people who left tiger and started a fund. they all invest alike and they fall together. why are hedge funds struggling in this market? joining us is sheila kolwatkar, author of a new book, "black edge." this is a book about the investigation into steve cohen. gotten great reviews. we'll talk about that in a second. but first, what do you make about the fact that hedge funds are smart and don't seem that smart right now? >> hedge funds were conceived as

special little boutique services for well think people to diversify their money so you would park some money in a hedge fund and the hedge fund would be hedged to have outreceiving positions and not core late with the market and we have seen the industry evolved these funds are huge, the managers have become very rich and they have become basically long only funds that do well when the market is doing well and often underperform. >> a lot of them take one way bets. valaent, target. >> i think they have totally moved away from their original purpose in the market and i think that's part of the problem and so you end up with the inflated expectations. we have seen all sorts of pension fund managers complaining about the fees. it's hard to justify paying the fee which en you're not really getting anything. >> i hear steve cohen, the money he manages, still doing pretty well. >> that's what we hear.

>> that's what we hear. >> there were reports of returning 1% last year. we don't know for sure. he's a private family office and hard to know. there's no investor letters going out and preparing to return to the business and from what i hear investors are so desperate for reliable returns that there's going to be demand for his fund. if and when he decides to go back in the business tie reliable returns in index funds at 8 basis points. not in hedge funds at 2 and 20. >> hedge funds always look really bad when the market is doing well. and you sort of like, yeah, i could do -- >> i thought you said they do well when the market is doing well. >> it always always work out and concentrate so much in one single position and valiant is a good position. if i doesn't work out -- >> oh boy. >> close to going out of business. we say hedge fund manager, not every year, but recent years,

performance isn't that great. 2 and 20 comes under attack. pension funds leaving hedge funds en masse. we have seen that happen. i don't know if we've seen the shakeout everybody thought would happen. >> we have a problem of everyone sort of pushed to put all their retirement money into the stock market so you have all these pension funds managing pension money and they have pressure on them to deliver returns to kind of respond to these enormous obligations they have and nowhere else to sort of find reliable returns. interest rates are very low and they end up and even though there's arguments against it they're still piling money into hedge funds not getting what they want out of it. >> you have probably forgotten more about steve cohen than we have ever known. you just said that there's a lot of people hungry to get back in to him when he can finally manage their money. does that surprise you based on everything you lernled as you've written your book about him? >> well, by the time i finished this book, i'd kind of reached a

point where nothing really surprised me anymore. and in fact, after the sort of crescendo moment in the book i describe and they were indicted, steve cohen himself was never charged but the firm was indited. had to shut the firm down. we had a number of big banks going out there and on this program saying, you know, he's a great counter party. we're still doing business with them. the u.s. attorney in manhattan described the firm as a magnet for market cheaters, wall street continued to trade with him. >> paid fees. >> they made a lot of money from him over the years. like hundreds of millions of dollars in commissions so in a way that's a business decision. but it sent a message that they were willing to overlook things that might not have been totally on the up and up. >> reading your book, i apologize for not having read it yet, will the viewer like or dislike the hedge fund business? what? >> a number of people who are not close wall street watchers

have said, wall street doesn't come out very well in this book. however, i think if you're someone who really pays attention to the market, you admire, you know, a good investing talent. steve cohen does come across as one of the most brilliant traders. people cannot help admiring that. he did build one of the great american fortunes essentially as a trader. it is quite remarkable. irrespective of whatever happen at his firm. he had incredible talent as a short-term investor. >> good luck with the book. >> thank you. >> our audience loves to talk about these issues so -- >> good yarn. >> lots of buyers. "black edge." chemicals, health care and handbags. one sector taking a major hit following sean spicer's white house press briefing. we're all over that.

welcome back to "power lunch." we want to take a look at shares of the nasdaq bio techs index

etf. ibb. we are seeing the lows of the session for this particular etf. and this on the heels of white house press secretary sean spicer making some comments saying that president trump is in favor of negotiating for drug prices. that comment and some others made in the press conference sending the shares down to the session lows and again, michelle, watching what's happening now. we'll keep an eye on the sector. >> hillary clinton, donald trump, bio tech sector hammered. >> what is interesting. take a look at the biggest components, dom, i know you did this. all of them actually still positive on the session so it's really being held up by the sort of upper tier within the ibb and i don't know what the lower tier is doing but that's having an impact here. also, just clicking through the other pharma names, merck, pfizer, they're also at session lows. >> off the highs there. definitely.

>> melissa, the xbi is more equal weighted and they could see more of a dramatic move i guess if you want to call it. a smaller bio techs there. we'll see if it lasts. >> yep. thank you. vice president mike pence casting the tiebreaking vote to confirm betsy devos as education secretary. the fallout, repercussions, maybe the positive implications. we'll discuss. you do all this research

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call for a free quote today. liberty stands with you™. liberty mutual insurance. hi, everybody. i'm sue herera. president trump met with sheriffs who backed his candidacy and his border protection plan at the white house this morning. he said his fight to carry out his temporary travel ban was critical for national security. >> we're going to take it through the system. it is very important. it is very important for the country regardless of me or whoever succeeds at a later date. i mean, we have to have security in our country. so we'll see what happens. we have a big court case. we're well respectpresented and what happens. the national weather service said it confirmed three tornado

that is touched down in southern louisiana. several buildings were severely damaged in east new orleans with downed power lines across the road. so far, no injuries have been reported. but the lousy weather couldn't dampen the moods of super bowl fans. owner robert kraft and mvp quarterback tom brady leaning over the sides of the amphibious duck boats to wave at the several hundred thousand fans who lined the streets and braved the cold. that is the cnbc news update this hour. i'll send it back over to you. >> i love the duck boats! thank you, sue. >> there you go. 90 minutes from the closing bell on a record day of stocks. dow and nasdaq hitting record highs. consumer staples, technology, utilities leading, energy and materials are lagging. oil market is closing for the day. courtney reagan has the latest.

>> hi. good afternoon, michelle. oil prices down 1.6% after hovering $62 today and then lower levels since january 20th. bearish factors weighing on the price of wtf. reports saying crude exports dropped indicating that the second largest opec producer is cooperating with the production reduction agreement. still, it's not enough to outset the strong dollar. higher u.s. production and signs of lower demand of oil from china. brent crude prices depressed. both wti and brent crude traded within a $5 range since the beginning of the year. moving around the $55 per barrel mark as a key pivot point and the weather is crummy in the country and gasoline prices hittest the lowest levels since december 1st thanks to a jump of stockpiles in the first 27 days of 2017. back over to you. >> thank you.

beyond immigration, travel bans and trade, another hot button issue dividing lawmakers in washington is future of education in america. short time ago, president trump's controversial pick to lead the education department got confirmed. senate republican leaders had the support of 50 gop lawmakers. plus a historic tie breaking vote of vice president mike pence to 51 and she is the secretary of education. so why has education in the u.s. become such a divided issue? what is the vision? joining us now is noted lawyer and journalist, steve. welcome back. >> good to see you. >> what do you think of the vote on betsy devos? why was it so controversial? does she, might she have the right recipe to help teachers and schools? >> the good news is she seems to be in favor of keeping much of the obama education reforms which were centered on the

notion that schools and teachers and teachers' unions to be accountable for their performance. the bad news is that while she favors giving parents and students the alternative of charter schools and other schools, she has not favored holding them as accountable as she wants to hold the public schools and the worst news seems to be if you watch the hearings is that she's not exactly the sharpest tool in the shed. she just didn't seem like she knew anything. >> aren't charter schools held accountable by parents? they're not that good and that's how they fail whereas public schools don't have that option? >> well, that's true. except that in michigan the charter schools a lot of which were for-profit charter schools got to keep their charters, keep advertising and keep luring parents there. very often, it is difficult for parents in detroit to tell if the charter school is any worse

than the public school where they were. the real solution is to have the kind of charter schools we have here in new york, most of which really do a good job and are held accountable and the performance of the kids is completely measured and made clear to people. >> is the problem -- in detroit, compared with new york that the performance -- that was -- how were they measuring performance? by test scores or what? >> not at all and making it clear. they were resistant to the accountability that the charter schools here in new york have had. >> go ahead. >> yeah. so, i'm confused here because what i find interesting is that if you had a really super republican president you'd have a department of education head who didn't want it to exist in the first place. right? >> that's true. >> in fact, this person actually

thinks that the thing should stick around. >> i'm not sure she thinks it should stick around. she may have testified that it should stick around but the record is in favor of privatizing the schools and it gives people lots of choice potentially. the not so good news is that there is an important role for public schools and they deserve support. what they also need is accountability which the teachers unions resisted. >> so much we could talk about, steve. but i'm just going to sort of get dealer's choice here. >> go! >> been a part of the media for a long time. i wonder what you think of the president effectively declaring war on the media. >> it's not a surprise. he's declared war and sued all his enemies from the beginning of when he inherited a fortune from his father. and didn't do very much to increase it. >> so what should the media do? >> should just keep doing what they're doing.

i would recommend that they be careful not to overstep in terms of rhetoric, for example. you know, i think it's better to say, misstatement instead of lie because lie implies that you know what his intention is. >> let's move on to the immigration case that is out in front of, i believe, the 9th circuit out in san francisco. you are a lawyer. you invented american lawyer magazine. what do you think here on the merits? does the administration have the strong case that they think they do? or, does -- do the people that filed the briefs opposing it, do they have the stronger case? >> i think both sides have a strong case in terms of certain aspects of the case. if the administration had filed an order that clearly allowed people who already had a green card to keep the green cards and allowed people with valid visas

to keep them, and now current their position, there wouldn't have been much that the other side could have complained about in terms of constitutional rights. so my guess is and purely a guess that's the way the courts will split the baby at the end of the day. >> thank you. we hope you come back again. >> sure enough. >> you bet. thank you. the dow and nasdaq hitting records today. apple a big reason why. the trading nation team weighs in and what will the trump administration do with the millions of acres owned by the federal government? scott cohen is live in nevada. scott? >> melissa, donald trump made his fortune as a real estate developer. we know that. he controls a lot of real estate. think he might want to get a deal on something like this? we'll take a look at the simmering debate of public lands that may be boiling over coming up.

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federal government owns 85% of the land in nevada. under president trump, can some

of that land be given to the state or private owners? scott cohen is live in red rock canyon with more on that. scott? >> reporter: hi, michelle. we don't know yet the official word from the trump administration is that they are against any land transfers. that's the official word but already the republican congress with the blessings of the white house has begun dismantling some restrictions on the use of public land, that helps explain the outcry from environmentalists looking like at this place, red rock canyon national conservation area. 200,000 breath taking acres here in nevada. the concern is that areas like this will be spoiled. but there are also those, particularly here in nevada, who think that the trump administration provides an opening. a republican congressman said he may have a shot at a proposal to transfer millions of acres of federal land in nevada to the state.

>> we think locals are in a better position to make those decisions regarding land use, resource, grow not grow than with all due respect to the federal government 2,500 miles away. >> reporter: the federal government controls about 85% of the acreage in nevada and hard to overstate the debate here in the west about what to do about public lands. conservations, sports men worry about the transfer of public -- federal lands to the state or private interests. a group in nevada concerned that the state couldn't possibly afford the upkeep. >> can one single state that's got less than 3 million people in it really foot the bill for that? that's a high price to pay to have our own independence. >> reporter: there is clearly a great deal of emotion surrounding this and that's what people on both sides say they're trying to cut through and up to

the trump white house to decide to continue with that stance of not transferring public lands or if the pressure of out here changes that stance. back to you. >> scott, isn't it a lot of desert? how much maintenance is there? excuse my ignorance. i don't know. >> reporter: look, a lot of this is parkland, a lot of it would be exempt from any proposal to sell off public land. a lot of the land can be productive. there's a lot of mining that goes on, for example, on federal lands. and the dispute has gone back and forth for years between leaseholders and the bureau of land management. there's no love lost between them and then people think that the status quo, the devil we have is better than the devil we don't know and framing the debate here. it is not clear whether that's going to change. but certainly, the debate will continue. >> sure will.

thanks, scott. apple hitting the highest level in nearly two years today. how much higher can it rise? craig johnson is an analyst and eddie alkinbine. good to have you with us. craig, what do you see in the charts here? >> well, if you look at the shares of apple, they did great in 2016. they're off to a great start in 2017. the shares are now just starting to break topside of the 2015 high. and if you look at that measured base of breaking out from, it suggests a measured price objective of the low 160s and we like the stock and fundamentally we also like the stock and would be buying at these levels. >> eddie, it feels like people were saying, oh, apple's a value stock and might be a value trap. should we re-cat gorize it? >> yeah. i think it is a growth category.

just look at the last earnings report. i mean, $78 billion in revenue. that's certainly captures the attention. very strong performance in their services. that alone would be a pretty sizable member of the s&p 500. and on top of that, they have a nice quarter trillion dollars in cash and some of that, a great deal might be coming home soon shortly. i agree with craig. i think it is a strong opportunity for apple. they haven't hit that new high yet that was reached almost two years ago and getting very close to it. they may hit it any day to give them $700 billion in market cap. and i'll tell you, looking out maybe three to five years from now, the magic number to watch is about 190 per share. hitting that, apple will be the world's first $1 trillion company. >> wow. a couple percent away. eddie, thank you. and craig johnson. for more, go to trading

nas.cnbc.com. is netflix a threat to the restaurant industry? we'll explain the connection next.

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welcome back to power lun. . the good, the bad, the ugly. centine up. the company gained members with acquisitions of health net. now onto the bad, fmc. that stock is down by more than 6% after missing earnings and revenue expectations. it is an ugly day for michael koors. the retail jurors also lowering the 2017 outlook because of disappointing sales. >> thank you very much, melissa.

netflix hitting an all time high. listen to what tillman fertitta says about food. >> netflix is spending $6 billion and they want to order food in, cook it in and it's having a huge effect on the restaurant industry. >> a lot of them reporting after the bell. susan li joins us now. do you have a point, susan? >> he has a point. more people are eating in. a lot of reasons for that. netflix, meal delivery companies, higher wages, cheaper groceries and less discretionary cash to spend. it's all making it very difficult and tough for restaurants. then you throw in some bad weather in december and it's been a really rough year in 2016. it might not get that much better this year in 2017. goldman sachs predicts that health care and energy costs are keeping customers away from

spending at restaurants. so it might get slightly better, they say, in 2017. wages are the biggest cost for restaurants at 18 states just raised the minimum wage at the start of this year. goldman expects full service chains so places like denney's, ihop, olive garden will continue lagging the rest of the industry which has been the case. fast food is viewed more favorably for its convenience and also its value. we're talking about a 1% increase in foot traffic this year according to mpd, the research house which isn't much but it's better than the flat growth versus in the business that we saw in the past year. so one thing that is helping restaurants, food commodity costs. the ml research says food costs deflation hit a two-year low at the end of last year. however, wing prices since we have buffalo wild wings reporting after the bell and wing prices have been increasing the past year and up six of the

past seven weeks. hit peak wings this weekend with the super bowl 1.3 billion wings consumed in one day. one day. >> we have seen restaurants in new york city decide do nothing but takeout. they get rid of the employees because the wages are going up so much and people would rather eat at home. >> that's right. we have panera bread reporting after the bell. they have done well with their digital strategy. order on your mobile phone, go in and pay or you order at home which is something even mcdonald's is now testing out in a few markets. you can order and have mcdonald's deliver to you so you can get your big macs, big, little, large. >> i wonder on solve levels the restaurant market is over saturated. >> yes. definitely. buffalo wild wings bar and grill is completely saturated. >> many, many articles about peak restaurants in magazines, how many. >> especially mall traffic is down. if mall traffic is down that's a lot fewer customers for a lot of

mall based restaurants. >> that's how you gauge restaurant sales. you want repeat customers. if they're not coming back, you have a problem. >> buffalo wild wings will be interesting because they have marcato capital. maguire just nominated four board directors including himself to the board so there may be this wing cost rise, bar and grill may be saturated but they do have an activist in there. >> lots of activists in the past few years. dardens. chipotle, people are interested in food. maybe ways to improve it. >> thanks, susan. christy brinkley posing in a swimsuit at 63 years old. god bless her. check, please is next. was not compromised this morning in a security breach that didn't happen. wall street, not rattled... at all! no. sir, sir. what went right? everything. we have a brief statement on this non-breach. we're happy to report there's nothing to report.

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fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. check please nkts stocks at an all time high. i did "squawk box" this morning. i have interviewed so many people who are so negative on trump, trump is bad, trump is uncertain, he's causing volatility and yet stocks are at new highs. the market says something completely different. maybe they'll be right at some point but not today. >> yeah. i am watching disney. that's going to be the big dow report after the bell in terms of earnings. everybody will be listening for deterioration of espn. mr. iger will be asking about his own tenure. it's been rumored that perhaps he will extend his tenure and that could be a major risk out

of the stocks. julia boorstin will have an exclusive interview with bob iger at 5:45 eastern time on "fast money." >> on one hand, subscriber growth, nah. on the other hand they threw up so much cash. >> true. >> what do you do, go after these small snap chats that are growing faster. >> could they buy? could they buy? >> no. just trying to decide where do you put your money. do you go with that steady eddie? >> all popular this week to talk about the analogs to tom brady. i think bob iger is the tom brady of the media business. number one, it seems like he can keep going forever and ever and ever. i met him for the first time in 1991 or 2. he looks exactly the same as he did then. i mean, he's in amazing shape. >> speaking of which. >> right. he's a handsome man. speaking of good looking people. christie brinkley, 1979 she was first on the cover of "sports

illustrated" swimsuit issue. when those magazines hit desks all men's doors shut. there she is with her daughter, alexa ray joel and christy thanked us that we do not come with an expiration. >> this show does. >> "closing bell" starts right now. yes, hi. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm stock walker in for bill griffeth. the dow and nasdaq hitting record highs. one big investor says valuations are getting, quote, perilously high. we'll debate how that should impact your investing strategy. >> president trump meeting with rex tillerson at this hour. we have an exclusive interview with ceo