52 handle well off the high, going lower. >> oh, okay. fighting words. josh? >> i'll reiterate, i don't think it's done going up. competitive advantage they've gained the last year pays dividends for the next two years. i want to stay in it. >> amen. >> that's it? >> i said the airlines. that was me. i spoke first. >> that was me. that was my trade. "power" starts now. president trump targeting a new company. now it is nordstrom, facing criticism over its decision to ditch his daughter's clothing line. new details of the stock's reaction straight ahead. sounding off on the gop's tax plan. why one big-time republican is calling his party, quote, crazy and insane. the debate over those heated comments coming up. why netflix and pizza go together like peanut butter and chocolate. at least on wall street. i'm brian sullivan. another "power lunch" starts right now. add some banana, too.

love that combo. welcome to "power lunch." i'm michelle caruso-cabrera. utilities, real estate, telecom, the leading sectors, nike, verizon leading the market now. crude touching its lowest level. gold touching its highest level since mid november in part because of what's going on in france. >> thanks, michelle. rising on wall street and corporate america, fears of whether president trump's tax plan is starting to get bogd down in congress. border adjustment tax, we've been talking about it a lot later. steve forbes this morning was all fired up. >> the republicans are now proposing this crazy tax. they're going to punish american consumers, give subsidies fo boeing and ge. we're going to help foreign consumers in china and iran punish american consumers. it's insane. >> forbes also sounded off on

this notion that the rising dollar could help offset some of those concerns. >> we're going to manipulate the dollar so you don't feel the fact that your gallon of gasoline is going to go up 30 cents a gallon, which is what they will if they put in this border tax. plus, if you want to get a quick tax cut, introducing a whole new tax that people haven't thought through, people forget in washington, we have these elaborate global supply chains. you're going to disrupt all of that. and you don't know what the consequences are. >> this is a hot issue. we'll talk a lot more about it in the show. the president just finishing up a meeting with ceo of intel at the white house. josh lipton has the details. josh? >> well, michelle, you're right. the chip giant just making some news here, saying that intel will invest $7 billion in an arizona semi conductor factory, krzanich saying they will employ some 3,000 people at its peak.

we don't know what kind of chips they'll be making here. interesting timing, of course. krzanich like every tech ceo would like to have a friend in the white house, given a range of issues before the chip giant. there is interesting tension here. krzanich meets with trump, intel employees were no big fans of trump. during the campaign every one dollar that intel employees gave to trump they gave about $13 to clinton. that was actually less lopsided than tech overall. the headline here, krzanich saying they will invest $7 billion in this arizona semi conductor factory, employing 3,000 people at its peak. remember, intel's analysis day is tomorrow. financial analysts will certainly have a lot of questions for intel's executive about growth in the data center. but now it feels like they could have a few more. guys, back to you. >> josh, any sense as to whether or not this is new money for a

factory here in the u.s. or what they'll be manufacturing? there was talk about internal manufacturing in mode ums. >> we don't know that yet. only headlines here, michelle is that they're investing this money semi conductor factory. you're right, at this point, no more comment on what kind of chips they'll be making there. >> let's not forget back in january of 2014, this is good news. back in january 2014, intel, which had already planned to open another semi conductor plant in arizona mothballed the factory. they had planned to open the new one. they said demand didn't need it. they could aggregate the demand and manufacturing at other plants. i wonder if this is the previously planned and thus mothballed factory called fab 42. they have another factory and chip plant close by in chandler, arizona. it could be an entirely new plant or intel saying there's enough demand to unmothball the

previous plant. >> these announcements all the time, how much of this is new money or stuff that they would have done anyway, but they do it in a much bigger kind of political arc and framing in an effort to please the president and, you know, try to forestall any criticisms about producing overseas? >> why not save this until after you meet with president trump and, bam. >> and give the president a win and you were going to do it anyway. >> i don't know if they were. but not taking anything away from it. it's great news. one, more jobs than less. i wonder if this was the previously mothballed factory. if so, is it going to be bigger? is it going to employ more people than it previously was going to? is it that melissa lee pc demand got good enough that they can justify opening the plant? >> hold on. we have that meeting now between the president and the ceo. >> you've never seen so much paper on a president's desk. that's because we're negotiating lots of deals for our country which will be tremendous.

i just want to introduce brian krzanich, the ceo of intel, a great, great company. brian called a few weeks ago and said we want to do a very big announcement having to do with our country but also mostly with arizona. and jobs and the great technology that will be produced. this is brian. brian, why don't you say a few words and maybe also about the product you're going to be making. it's amazing. >> thank you, mr. president. it's an honor to be here today, representing intel and to be able to announce or $7 billion investment in our newest, most advanced factory, fab 42 in chandler, arizona. we will be completing that factory to make the most advanced semi conductor chips on the planet. intel is very proud of the fact that the majority of our manufacturing is here in the u.s. and the majority of our research and development is here

in the u.s. while over 80% of what we sell is sold outside of the u.s. consistently one of the top five exporters in the country and one of the top two research and development spenders in the united states. and we've been able to do that even while the regulatory and tax policies have disadvantaged us in the past, relative to the competition we have across the board. fab 42 is an investment in intel and also the u.s.'s future in innovation in the semi conductor industry. fab 42 will employ approximately 3,000 direct, high-paying, high-wage, high-tech jobs at its peak and over 10,000 people in the arizona area in support of the factory. and this factory will produce, as i said, the most powerful

computer chips on the planet, powering the best computers, best data centers, autonomous cars. all these devices are the most powerful computing devices on the planet. and at intel, we have a simple saying. while other people predict the future, we build the future. and this factory is a great example of that. i want to thank the president for this opportunity to be here today. >> thank you, brian. you have something over there that will show a little bit about the new product. >> this is an example of what will be built in fab 42. this is one of our newest ten-millimeter. seven will be built in the fab 42 and this is the future of computer. >> any questions for brian? i know you have none for me so -- >> bring back jobs. the other business you have outside the country, do you plan on bringing them back here?

>> this is actually an expansion. this is about growth. this position is actually about growth and new jobs in the u.s. >> great thing for arizona. unbelievable company and product. and we're very happy. i can tell you the people of arizona are very happy. it's a lot of jobs. they'll probably be investing -- what did you say? your total investment will be what? >> in just this factory is $7 billion. but if you take arizona, we already have two other factories in arizona. we have several tens of billions of dollars in factories in arizona. we're the the number one private employer in arizona. >> and how long have you been planning this investment? >> we've been working on this factory for several years. we held off, actually, doing this investment until now. >> was there something that president trump did or said that made you want to announce this here? >> it's really in support of the tax and regulatory policies that we see the administration

pushing forward that really make it advantageous to do manufacturing in the u.s. >> thank you, press. >> thank you, all. thank you very much. okay. another almost dog and pony show at the white house with another ceo talking about jobs and opening a factory. intel ceo. eamon javers at the white house. we're seeing this over and over again, eamon. >> i don't think i've ever seen a u.s. ceo make a plant announcement inside the oval office before. this squares with the reporting we've seen that donald trump himself personally feels that the oval office is the greatest stage in the world, the greatest platform in the world. he has encouraged his aides to use it more for big events. we're just seeing that just now. interesting to watch the fine line intel is walking here. we saw intel was one of the companies that signed on to that amicus brief, criticizing the

president on his travel ban, saying that might be unconstitutional and today at the white house to announce the new jobs, plant and investment in the united states. trying to have it sort of both ways, as this company and so many others now straddling this great political divide in this country, michelle. >> eamon, i'll pick it up from there. there's been a lot of presidential drama around this fab 42, fabrication 42 plant. this is the same plant that obama visited in 2012. intel had announced plans. they built the plant. obama came to the same factory and intel promised a $5 billion investment. obama said you need to create more jobs in america and they said they would. two years later, intel mothballed the plant. not only is it the same plant but it's literally now been discuss bid two presidents, the same factory in arizona. >> we should underline it they didn't mothball the plant just because it was a show for the president.

there was a downturn in demand, there were a lot of reasons it could have been mothballed. now you have a nice opportunity, perhaps, to reopen it. >> the 14 nanometer platform is what they were going to build at this factory, for new mobile processing, automobile processing and perhaps the demand wavered off -- lot of drama around fab 42. let's get over to stacey rabscon. not taking anything away with this but do you think this is a factory that due to increasing demand they were going to accelerate any way? >> you're right, they spent $5 billion on the building and then they mothballed it because the demand profile they were looking for when they started building it went away. so it looks like they're getting new equipment now. they said 7 nanometers which isn't coming online until 2020 or 2021. so it will be a while before it's up and running.

but apparently they're seeing -- i guess they're seeing growth. it's interesting. their current plans for pcs for the year seem to be more cautious than other third-party forecasts they've talked about. and in general they've acknowledged that the pc market overall is declining. i would be very curious to see at the end of the day come 2020, 2021 exactly what we see. >> the ceo was asked by the reporter why he is doing this now. he said because of the tax and regulatory policy changes he expects under donald trump, suggesting it's now more economic to do it here. do you believe him? >> well, um, some of the tax policies we've heard around border tax adjustments tend to favor companies with large amounts of offshore revenue and higher levels of onshore costs. in that sort of regulatory regime, it probably does make more sense to do manufacturing onshore than offshore. >> stacy, you're an analyst that

is less convinced that intel is a long bullish sort of play. the day before this announcement takes place, is this something you would want intel to do, this major spending effort, 7 nanometer for a chip that is not going to be in any pc for a few years? >> well, look, intel spends when they need to spend. they would not be spending this money just because of donald trump if they didn't believe that -- >> sure, but would they do it right now or next year? >> they're not spending any money right now either. this probably won't come online for three years at least, maybe more. they're putting the commitment out there right now. we'll see if they honor it. last time they spent a lot of money -- >> they said they were going to do it, stacy, a couple of years ago and then mothballed the -- i'm not picking on intel they said the technology was coming and then, whoa, let's mothball this thing. >> they actually spent $5 billion. >> they spent $5 billion

building it and promise mord investment but the plant has been empty a couple of years. >> you can't just invest willy nilly, right? it has to align with your business need. >> i guess the bottom line, stacy, does this make you more bullish on intel or less, or does it move the needle? >> it doesn't change my opinion at all. they'll do what they have to do. >> got it. stacy, thank you very much. stacy rasgon. news alert in the bond market. ten-year notes are up for auction. it's not getting a lot of attention, rick, but we're seeing a sizeable drop, nearly 3% drop in the ten-year, pretty big move for bonds, is it not? >> i don't know about percentages but we definitely saw a drop. matter of fact, if you look at where the market was, ten-year note was trading around 2.42 before the auction. that was the lowest intra-date trading level. you have to go all the way back to january 18th to have that in the day's trading range.

you're spot on in that regard and we're supposed to have concessions, concessions for auctions. meaning that it's cheaper for you to buy it. but it's been the opposite. the price has been going up all day. so, we had 23 million first timers not reopen ten-yield notes, 3.33, way above the offered side, the yield, of course, reflected a weaker price higher yield. right off the bat you take your grade off. 2.29. 2.5 time auction. 61 was the higher metric, 4.4 on direct. basically this wasn't a great auction. i gave it a d plus and think it's because of the way the market traded before the auction. tomorrow we clean it up with 30-year bonds. brian, melissa lee, and the gang, back to you. >> thank you, rick santelli. are republicans in congress overcomplicating something that should be simple to do? what needs to be done.

plus "power lunch" exclusive with olympian michael phelps. he was all business in the pool. now he's just all business. what he's working on right now still ahead. who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

they're going to give subsidies for boeing and ge and

punish american consumers. it's insane. >> that was steve forbes on "squawk box" this morning, saying the fight over the border adjustment tax may derail any chance for tax reform. is he right? should congress put together a straight plain vanilla tax cut? joining us, american action forum. so common to see democrats versus republicans discussions on tv. but this is right on right. internal warfare within the gop about how to do tax reform. doug, i'll start with you. you support the idea of border adjustment taxes. this is the biggest change to corporate taxes in american history, perhaps since the corporate tax was invented. why do something that scares so many people that's seen as confusing? >> this is the biggest change in business taxation in america. and it's needed. you need dramatic change to get

dramatic performance. what's being missed is that this delivers tremendous growth. and the border adjustment is key to making that happen. as you know, when you do your taxes under this proposal, you discard all cross-border transactions. you get rid of all those transfer pricing games that have been played for years and get a real good tax base in the united states. second thing you get rid of any tax based advantage to foreign production. you want to be in the u.s., producing in the u.s. the united states is the place. you want to be in the united states instead states, selling to china, in the united states, selling to europe. this is what makes it go. >> jimmy p, you hear him. doug thinks it's the greatest thing since sliced bread. what's wrong with it? >> you could have a fantastic

tax reform plan, deep corporate tax reform, do the sort of immediate expensing that a lot of people on the right think is absolutely necessary to do great corporate tax reform. but you could do all that and not do the border adjustment. steve forbes gave a reasonable critique. it's not a terrible or insane idea but it is a rather novel policy idea. probably illegal under the world trade organization rules. but what are you going to get out of it? you're running a huge experiment. the reason republicans are doing this, it pays for some of the other tax reform. how about not cut taxes on the wealthiest americans, scrap the border adjustment, which is supposed to bring in $1

trillion? >> let me respond. so, number one, this has been done all around the world. >> not like this, doug. >> stop. let me finish. the world has not melted down. you can handle currency fluctuations. that's part of life. number three what you said is not the choice. you do not have the choice of doing the tax reform in a territorial system and not having the border adjustment. you either do that, which protects the integrity of the tax base or these awful base erosion rules led by dave camp. a real choice is, do you have this way of dealing with the integrity of the tax base or that way? that way was already rejected. the idea that somehow you can take all the good stuff and ignore the rest is just not true. >> jimmy? >> listen, you can't keep the expensing. if you want to do the territoriality, that's fine. is that so important, all right, that you're willing to scrap the rest of the plan? listen, there's probably a one

in five, one in ten chance -- now let me finish, doug. you have maybe a one in ten chance of this happening. when the border adjustment goes down, what is plan b by republicans? this is going to blow a $1.2 trillion hole in their budget. they better be working on a plan b. i don't think it's going to happen. >> last word, doug. >> that's the political argument. here is the reality. we can't just do reform and not have territoriality. >> yes, you can. >> every other country does it for a reason. >> you know very well the consumption tax doesn't have to be territorial. >> let doug finish. doug? >> you just made the argument the obama administration made unsuccessfully for eight years. keep making it. you'll lose. >> all right. >> they were not making my argument. i'm making a different argument. and your argument is true. >> jimmy p, i told you, doug gets the last word. all right. thank you, guys. that was illuminating. we enjoyed it. you'll have to come back. >> right. guys, by the way, this doesn't end, right? this is bob iger, walt disney

ceo, spoke with julia yesterday, talking about tax reform and how important it is to the bottom line as well. >> absolutely, yeah. all right. still to come here on "power lunch" a lot more to do. michelle just talked about bob iger. a little more on disney. plus, do you know what's been hot? pizza stocks. but can domino's and all those other companies actually think net -- is it like netflix and chow? >> or chew. >> or chew. first, though, giant alligators now giant pythons. the late northwest crazy florida news. stick around. what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there.

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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, ask again at schwab. president trump slamming nordstrom on twitter for dropping his daughter's brand. >> tweeting my daughter, ivanka, has been treated so unfairly by nordstrom. she is a great person. always pushing me to do the right thing. terrible. they're no longer placing orders for new ivanka trump, saying it refreshes 10% of its inventory annually.

before the election, social boycott of trump merchandise gathered steam using the #grabyourwallet, in reference to that infamous access hollywood tape. that's why nordstrom cut it, possibly because of the boycott or customer dfrt when it comes to buying trump merchandise that wasn't there before. 2016 electoral map versus nordstrom stores, most of their stores are in blue stays. 126 are in states with electoral votes that went to trump. nordstrom isn't the only retailer to sell ivanka trump merchandise. these 18 retailers sell it, too, online or in store or both. macy's did stop selling donald trump merchandise but does still sell ivanka trump, a lot of it on its website. >> doing the electoral map, even if he does criticize nordstroms, most of them wouldn't care?

>> really high for a retailer. it's a little hard to play with the geography on those numbers as well. something that's important to consider. nordstrom is a bit of an outlier in that case. >> just the latest retailer, right, to suspend sales of ivanka merchandise. neiman marcus. >> they had merchandise that was con signed merchandise and so that sort of will always fluctuate based on what it gets. right now they don't have any but wouldn't say outright they wouldn't in the future. macy's did drop trump's line early in the election cycle. >> somebody may have put that out there. although not for this reason. let's be clear. >> can we bring up the stock again? stock fell initially. >> it did. >> but then recovered. is the tweeting not having the same impact that it used to, right? >> it's up 1% despite this. a few weeks ago, this could have

been -- >> it's not here's a tweet and hit sell. these are algorithms, whenever there's a tweet and mentions a name they automatically sell it. a couple of seconds later a human being gets involved and says let's buy it back. this is computers, not people. >> also its problems are way bigger than donald trump tweeting. >> that's exactly true. >> the sector is in shambles, right, courtney? >> that's a very good point. high-end or luxury retailers are pointing out, they're seeing strength in other areas of the world but specifically the u.s. is a troubled spot because of the low traffic in u.s. department stores. much potentially bigger problems depending how you slice this that nordstrom is dealing with right now. >> thank you, court. >> thanks. biggest headwind to housing, where is it and where is it being felt the most? that story, straight ahead. with the help of the lowest taxes in decades, a talented workforce,

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hi, everybody. i'm sue herera. your cnbc update this hour. senator udall is reading coretta scott king's scathing letter

against senator jeff sessions, the same letter that got elizabeth warren banned from speaking during the remaining debate on sessions. >> i would like to read into the record today the letter from mrs. king, which supports her opinion of mr. session's lack of commitment for justice for all and leave it to my colleagues here today to assess in considering his nomination. >> despite a plea to stop the violence from the alleged victim, french protesters burned cars and ambushed police after four police officers were charged with sexually assaulting a young black man. 17 protesters have been charged. spinal tap has reunited in a los angeles courtroom to challenge vivendi for millions of dollars in profits from the movie "this is spinal tap." rob reiner joining the lawsuit. they are seeking $400 million. back then the four were told that their share of "spinal tap"

profits were $81 in merchandise and $98 in music royalties. that's the news update this hour. back to you guys. michelle? >> i would be mad, too. >> that's right. >> that's a lot of money on the line. >> thank you, sue. >> sure. all about supply and demand when it comes to the american housing market. diana olick live in washington, d.c. with new data. >> mortgage applications to buy a home are finally a little bit higher than a year ago even though rates are a lot higher. rates are not the problem. it's lack of listings, leading to a lot of mismatched markets for this spring's housing market. what's mismatched? the type of supply and the type of demand are seriously out of wh whack. trulia measured searches versus available listings and found that, of course, it comes down to price point. starter, trade-up and luxury. there is a significant shortfall in starter and trade-up homes

nationally and a large surplus of luxury listings. 27% of all searches nationally for starter homes, only 21% of listings in that category, though. on the luxury side, 44% of searches were in luxury and 45% of listings were in luxury. top ten most mismatched markets on average, four in texas, dallas, followed by houston, charlotte and raleigh. florida also grabs two spots and greenville, south carolina, and grand rapids, michigan, round out the ten. now the markets with the biggest shortfall of luxury homes, philadelphia, detroit, memphis, new orleans and l.a. it's interesting that all of those markets have a surplus of start-up homes and are pretty well matched up in the trade-up category. for young buyers looking to get into home ownership, those markets are your best bet. back to you. >> diana olick, deep dive into housing. thank you. where is a good place to get

real return? ideas now from the head of real estate research evercorps isi. who is brandywine, reit and why a good investment according to you? >> sure. thaven thanks for having me on. about 70% of the portfolio is based in downtown philadelphia and suburbs of philadelphia. while philadelphia doesn't get the same attention that washington, new york and boston often get, that market is quite strong. we've seen companies like comcast growing quite significantly in the downtown market. it's a much lower expensive market than some of the other cities i just mentioned. the company has done a good job of repositioning the portfolio in these faster growing areas and taking advantage of opportunities they had in the philadelphia area. >> a distribution and logistics company. is this an online retail play?

>> a little bit. you know, i don't want to overstretch the e-commerce play. they definitely have seen amazon grow as a customer over the last three years from something like 3 million to 13 or 14 million feet. it's not all positioned toward e-commerce. some of the challenges in the brick and mortar retail have certainly benefited e-commerce, and companies like prologis. >> they have this added capacity of helping with logistics. does that help the multiple, hurt the multiple? >> they do have logistics companies as their tent anentte. they'll lease to third party logistics providers and those companies are their tenants. they're not getting paid on the volume of merchandise that runs through the warehouse they send to sign long-term leases with

credit tenants and basically get paid annual escalator. they're not taking much of the risk. >> your other pick is avalon, avb, bdn and alp and you're a-okay with us. who doesn't love pizza? domino's up over the past year, 70%. domino's up 15% already this year. how much more room do they have to run? we'll chew on that where else? on "power lunch." to a differenty with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected. we're the williams family, and we're usaa members for life. call usaa today to talk about your insurance needs.

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over the last year. we noticed that netflix has also risen, almost in tandem. not necessarily netflix and chillin but netflix and chewin'? chris great to have you with us. obviously netflix is not the only reason domino's shares are up. but people are staying home more often and eating? >> no, that's right. domino's has a very strong, secular tail wind. a lot of it has to do with convenience. younger folks are looking for more convenience and domino's is providing it to them with their digital ordering platforms. and they're also look iing for value. domino's has been reinforcing in people's minds for years that you can get two items for $5.99 each. that message has been on track and continues to resonate. >> we had tillman frititta on just before the super bowl.

billionaire in the restaurant industry. and he says very specifically netflix is hurting the restaurant industry because people are staying home and bingeing instead. i mean, is there a real secular trend in the activities of americans go iing on here? >> you know, i don't believe that is as big of an issue as just some of the demographic trends that are occurring in this space right now. you look at the usage of restaurants, typically it's between the ages -- folks between 35 and 54. and if you look at the population of that age range, it's been declining for the past ten years, which happens to coincide with the decline we're seeing in casual dining, same-store sales. a lot of it has to do with the demographic shift. what's interesting is that will inflect in a couple of years and will be driven by the millenial category. that group has a different preference in terms of dining out usage than what the boomers

had. you'll see new leadership among different segments within the restaurant industry. >> how will that inflect if millenials could be going out, how does a restaurant need to change to cater to this new upcoming group? >> that is a great question and something a lot of brands are working on right now. they define healthy differently than boomers. seeing organic, gluten-free type products boomers would consider low salt, low cholesterol as being healthy. so, you're seeing menus shift more toward authentic, organic or farm-to-table type products and more usage -- or more focus around convenience platforms, digital ordering, being able to order your food and take it home with you is very popular. more and more restaurants focus on that off-premise channel. brands like dominos, panera bread you mentioned earlier, those brands resonate with the

younger generation and are benefiting from it. >> are they benefiting from chipotle's continued woes? >> that's a good question. woes at chipotle are across several brands. not one particular brand is seeing an uptick in benefit. >> we'll leave it there. chris, thanks. this stock is up 135% in the past year. and why it could go up yet another 25% from here. plus, the world's greatest swimmer, olympic legend michael phelps. look at him live. there he is. hello! he is going to be on "power lunch." we are so excited. the two secrets of his success. that's what he's going to tell us. get rewarded for buying stuff. like what? like a second bee helmet with protective netting. or like a balm? you know? or a cooling ointment for the skin.

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we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. we are just one year away from the next winter olympics in south korea. that aside, let's focus on the summer olympics. michael phelps, the most decorated olympian in history, swam in five olympics, 28 medals, 23 of them happen to be gold. he announced his retirement from swimming for now, turning his attention to the business world. he joins us live now from new york at the leesa sleep dream

gallery, consumer mattress company. together michael and leesa hope to raise awareness of the quality of sleep on human performance. michael phelps, brian sullivan, melissa, michelle. thank you so much for joining us. we're all big fans. obviously in the nbc olympics family. here is the question i have for you. you're obviously half great white shark. so how important is sleep to you and those five olympics and 28 medals? >> for me, i slept so much as a kid. and going into my last limp he cans i knew how important sleep, recovery and rest was. it's just something that was natural. and like we have all these stats from the past on rem sleep and how i am on any given day. it's something that people overlook. sleep is really important.

for me, i probably get seven to eight hours at least a night. >> what about when you were training? >> also because i have a 9-month-old. i have to sleep a lot. >> the baby is the whole different issue, michael. when you were full-on training, lebron james has said this is one of the secrets to his success. tom brady famously goes to bed at like 8:30, 9:00. >> of course, yeah. >> we focus on training, protein and exercise. is this sort of the fourth wheel that people leave out? >> imagine your body as a car. obviously, you want to have all the right -- like the good stuff go into that car. that's going to make it run the best. you want the best food. you want the best rest. you want the best recovery so your mind works the right way, so your body works the right way. that's just something that i learned so young and, i mean, i really can't say it enough. i don't think people really pay enough attention to how important sleep is.

of course i was sleeping eight hours a night and taking a two to three-hour nap in the afternoon. swimming three to five hours a day seven days a week so it was something i had to have or i wasn't able to do what i really wanted to do. >> i thought michael phelps would endorse a waterbed. no? is he smiling? >> no, no waterbed. no waterbeds. >> no? this one is pretty good? >> this one is awesome. for me it all started with a dream and it should be that way for everybody. you want a comfortable bed and what feels good for the night. and helping kids and other people accomplish their goals and dreams, it really starts

with a good night's sleep and being able to have your body fully rested for the next day. >> how is this mattress different from others, michael? do you also track data? do you wear devices to bed so you can see what kind of quality sleep you're getting? >> i used to. when i was training i had a monitor that told me how much deep sleep, rem sleep and how much time i spent awake at night. that's something that we would use for recovery. so, one thing that leesa does that is really -- two things sitting here in the dream gallery right now. for every ten beds sold -- ten mattresses sold there's one donated. and if you have a chance to come down here, there's remarkable art from homeless artists. there's one on the back, my left

corner. it's special to have something like that. this is a part of my life and something that's special to me and definitely something that's meaningful for my everyday success. >> are you 100%, 1,000%, absolutely 100% convinced you are retired, michael phelps? you make the olympics a lot more fun. >> of course you had to ask that. i was waiting for that question. i am. you know, for me, i'm lucky enough to have had the opportunity to come back one more time this past olympics and kind of retire on my own terms. i think after 2012, i kind of just didn't really give 100%. for me, i didn't want to have that what if. after going through this olympics, being able to come back and put my body through the things that i did to be able to accomplish what i did, you know, for me that's the best way to go out. and i was able to be pretty successful this time around. i did want a world record but fell one short.

i wanted 40 before i retired. being able to have my son there, watch my last liolympics was th best. >> amazing stuff. good luck with the child and on the sleep front. best of luck. >> they had to wake me up before the interview. i was passed out. it's been a long day. >> it's just that comfortable. >> exactly. >> and then the baby cries and everything starts up. >> you guys got to feel it. >> good endorser. >> got to feel it. thanks, guys. >> appreciate that. quick reminder, we are one year from the winter olympics in pyeongcheng, south korea and nbc universal is your source for everything olympics. when it comes to ivanka trump's merchandise, we're not done with that discussion. tj maxx and marshall's owned by

tjx companies have decided not to feature the brand. they're not pulling the brand entirely. a memo was sent to employees at the stores, asking them to take down signage and mix in the merchandise with the larger assortment. so, again, "new york times" is reporting that tj maxx and marshalls, which are both owned by tjx companies, have decided to no longer feature the ivanka trump merchandise but have not gotten rid of it just yet. >> what they put in their advertising circulars, how they announce online, all that stuff. >> that's right. >> got it, courtney. thank you. >> thanks, michelle. tech is on a tear. trading at levels we haven't seen since the dot com bubble. remember those days? socks, sock puppet. tech names that got us here and what you should be buying right now. plus stocks that gained the most for the election. these stocks are on track for the third straight day of declines. why the pullback?

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of "power lunch." i'm michelle caruso-cabrera along with melissa and brian. here's what we're watching. prince may no longer be alive but tech stocks are partying like it's 1999, numbers we haven't seen since the dot com boom. hope it ends better this time. jeff immelt is tearing it down. is the new slimmer general electric better off and a better buy? and remember when dinner and a movie used to be a night out? now it's pizza and netflix and a night in. is netflix a threat to everything we know? all that and more on the second hour of "power lunch." ceo of intel meeting with president trump at the white house a short time ago. brian krzanich saying during the visit that intel will invest $7 billion in a factory in arizona and employ as many as 3,000 people. white house adding the plant would create an additional 7,000

support jobs but adds there will be no other incentives for the project. melissa? >> let's check out some of the movers in today's session. disney shares are higher, stock shaking off continued worries about espn. this stock went down 2% on earnings last night. turned that around. parsley energy buying more land in the permean basin and twitter getting upgraded, saying president trump is giving the company a second chance, that stock higher by .8% now. from a macro market perspective, tech stocks have ahad a great run, nasdaq up 9% since election day and levels we have not seen since the dot com bubble. josh lipton rejoins us now from san francisco with a look at what is driving tech sector higher. josh? >> so far in 2017, tech does take the gold with a gain of 7%.

next highest is materials at 4%. tech is now hitting highs, as you mentioned, that we have got seen since the dot com bubble of 2000. market strategists say the move can be traced in part to better than expected q4 earnings and seasonality working in its favor. cyclicals do tend to outperform between november and april. there are important differences between tech in 2000 and today. most obvious would be valuation, trading at a forward pe of 17. in 2000, 60. also, differences in sentiment. today, investors might actually get spooked when they hair comparisons to the dot com bubble and that nervousness could work in tech's favor. still not everyone is a tech bull. skeptics point to earnings growth and after this strong run valuation. >> right now our belief is that the tech sector should see earnings growth in the high 10%

area, actually slightly below the 11-plus percent growth expected for the s&p 500. also on a valuations perspective we're looking at the tech sector on par with the overall s&p 500. >> stovall points out another reason is a rising dollar, which could prove a headwind given that tech -- >> breaking news with sean spicer. her name on it and clearly efforts that -- to undermine that name. this is a direct attack on his policies in her name. there's clearly an attempt for him to stand up for her because she is being maligned because they have a problem with his policies. >> the timing of that tweet, it looked like it was right after his -- >> i heard the conjecture.

he was free when that happened. that was at all lie -- that's two. >> i'm sorry, that was a clarification of the one. >> the president said if hes to not prevail in court that we will never be safe, we will never have the safety and security we're entitled to. what does that mean? this is the only tool in his tool box and if this eo gets battered down by the courts we're toast? >> eight u.s. code 11.82 says an entry of alien or class of aliens into the united states would be detrimental to the interest of the united states he may by proclamation and for such periods as he shall deem necessary suspend the entry of aliens or class of aliens or immigrants or nonimmigrants or impose on entrance that he may deem necessary or appropriate. >> briefly dipped into the white house daily press briefing with sean spicer, making comments.

question was directed to him about nordstrom. remember, guys, these press briefings take place every day. we are monitoring them at cnbc with business, finance, whenever those comes up. you had flagged a nordstrom comment, michelle. >> he said what nordstrom's did was a direct attack on donald trump's policies. seems a bit of a stretch. >> as i recall what courtney said is it was because of sales issues. >> right. >> with the product, which has nothing to do -- it's completely different, sales and policies. >> it's a huge leap. even if it was actually something different, which is ivanka trump has become controversial, the president's daughter, et cetera. and maybe there was some other reason they didn't say out loud. but to go further than that and say this was a direct attack on trump's policies, we'll cut that and play that again. i found that pretty astounding. >> you've got a couple of different things, too. a father probably just trying to defend his daughter.

he is a father -- >> for sure. >> who happens to be the president of the united states. as parents we all still have that sort of instinct. but i will add there is a push and still is, for anything -- most on the left, that they should boycott anything related to the trump name and you should boycott anybody that dares to have a trump product in their store. so, maybe donald trump, who is keenly aware of all this momentum, is just trying to balance it out by taking the other side. >> by doing that, he's using his office in order to help her sales. i mean, he is doing that, right, to help one of his family members potentially capitalize. >> i don't know. is he? it's a double whammy for nordstrom. you have some people who are saying boycott nordstrom or anybody who has ivanka trump. then you have the president effectively saying -- he kind of said nordstrom is maybe not the company you want to spend your money in. >> he didn't want to help them that's for sure. >> he didn't want to help them.

nordstrom is caught between the vice. >> sean spicer w er said he was trying to defend his daughter. i totally get that. it was an attack on ivanka trump. we don't know that but that's easier to swallow. but to go the next step and say this was an attack on donald trump's policies -- >> it's a big leap. >> more on this from donald frank in a bit. this story not going way. another intersection of big politics and big companies. chief investment officer of albion financial and doug mckay, chief investment officer and ceo at broad leaf partners. jason, i'll begin with you. big run. many of these names inflation adjusted are still below their 1999 or 2000 highs. that aside, are there any big cap stock prices that you

absolutely love? >> yes, there are. we like google, facebook, amazon. we like companies that are dominating their specific niches with strong balance sheets, good cash flow profiles and providing services to their customer base that are really irreplaceable. look what facebook and google is doing. nobody else really is out there directly competing with them. can you argue they're competing with each other. but there's such a large pie both of them can grow into the next several years that we like these secular growth stories providing high-quality services and doing it with fantastic financial statements as well. if you look at it through the lens of how they're growing. >> i'm with you, jason, i can't bring myself to call them alphabet. doug, we used to sort of roll our eyes -- at least melissa did all the time. she does that about everything. >> what? >> hugs, hugs.

take it easy. doug, we used to talk about value technology stocks like it was an oxymoron. do they exist? >> value versus growth, delineation within tech, probably subsector driven, however. semi conductors are more classically value tech. those stocks did very well in 2016, if you recall the prior year, 2015 about the only thing worked was what i would call growth tech orphani fang stocks. that's what it comes down to, all indexes are kind of hitting new-time highs and it really comes down to what does the nasdaq represent? for it to go higher it's a bet on innovation and the economy. and i think the secular trends are still very powerful. a little more suspicious about the market as a whole.

i think it's less dependent on the economy. >> if you're invested in technology in general, should you be concerned about the subcomponent of biotech and being potentially a drag overall on performance? nasdaq can reach record highs? it doesn't matter what biotech is doing? >> i think so. we try to be thoughtfully descriptive as opposed to madly predictive. earnings and sales are growing at a nice clip. biotech has had its issues. sentiment driven, politically driven with regards to prices and regards to what new legislation might look like around containing price growth. a lot of that is probably priced in to that subsector at this point. that's not to say there won't be volatility going forward. it's hard to predict what policy will come out of congress and the new administration.

that said fundamentals in biotech look pretty good and there is growth to be had. just not with cheaper prices. probably not too much of a drag going forward if we were forced to predict what's going to happen there. >> jason, doug, thank you. appreciate it. >> thank you. from tech stocks to financials, financial stocks have gained the most since the election. down for the third straight day, what is behind this pullback? let's bring in vice chairman and head of investment group with ariel investments. charlie, good to see you. >> good to see you. thanks for having me on. >> you have been an investor in financials in the past. are you an investor right now? >> i'm an investor but what's interesting is the etfs have gotten to be huge investors in financialsment some of the value indexes are 40% because of the massive move they've made. financials have gone from being very cheap, almost universally last year, to being generally over expensive. worth more than their intrinsic value. >> how does it, though, that a

sector goes from horribly underinvested like three months ago to horribly over invested, the picture you're describing right now, in such a short amount of time? >> yeah. i really haven't seen a shift like this in my 30 years. brexit last year people were calling for the collapse of financial institutions around the world, looked like we would have a democratic senate, mrs. clinton would be in charge of the white house. all those things were very bad for financials. and then things changed. all of a sudden, europe is not nearly in the bad shape it looked like it was. mr. trump is clearly very positive from a regulatory point of view. and the republicans held the senate and mrs. warren is not in charge of the finance committee. so, things are just a lot better than they looked last year. >> charlie, that's why we've seen these stocks move so much. a lot of people look at the sector very simply. we're going to get a lot less regulation. dodd/frank will be reduced in some form or fashion.

some partial rollback, full rollback, et cetera. a lot of people look at this and say, we're going to get financial reform so these stocks are a buy. are they under thinking it at this point? >> they got it up to the last point. there is going to be deregulation, interest rates are going to go up. that's going to improve earnings. all of that, at this point, is overfactored into the stocks. morgan stanley is my favorite example on this. 23 in june of last year. it went to 46 this week. things are better at morgan stanley but not that much better. >> should they have been that level in the first place? that's what bulls will argue, that it should not have hit that low level in the first place. >> there are markets you can use to value financials of the they own stocks and bonds. they're not like facebook or

something that's hard to value. traditionally -- >> a guest we had on the other day said listen they underperformed for almost ten years. after a three-month rally, it's nothing. there's still a lot more time to go with these. that was his argument. >> right. there are ways to value. they would get their shares at book. today it's at 1.3 times book. fair value to slightly above fair value in my opinion. >> charlie bobrinskoy, ariel investments. coming up on "power lunch," did president trump cross a line with his latest tweet and amount to a conflict of interest? sean spicer talking about it in his press briefing moments ago. dinner and a movie no longer means a night out. it could be pizza and netflix.

three french women you absolutely need to know ahead of their presidential election. that and much more coming up on "power lunch."

targeting of her brand and her name. she's not directly running the company. it's still her name on it. and there are clearly efforts to

undermine that name based on her father's positions on particular policies that he has taken. this is a direct attack on his policies in her name. so there's clearly an attempt for him to stand up for her because she is being maligned -- >> that was white house press secretary sean spicer moments ago. it may seem like he was just defending his daughter. as any father might. but as president, rules are a little bit different. robert frank joins us now. courtney reagan also joining us. robert, let's begin with you. there's a lot of moving parts here. >> yeah. and let's talk about the ethics rules behind this and whatever laws may or may not be in question here. ethics lawyers saying his tweet on nordstrom marks a new level of using his presidency to support his family business. acceleration of the exploitation for profit of the trump family. trump is using his public

platform to lash out in defense of his daughter's business to harm nordstrom's and as a warning to others who might seek to limit other trump business affairs. richard painter saying, quote, it's unpresidential behavior, potentially much worse. neither the trump organization nor ivanka's brand would comment. ivanka has resigned as management of the company. her handbags, et cetera, generated $125,000 in revenue. those companies are now thinking twice, you can imagine, on whether they'll change policies on her brand. >> my daughter's a good person. he takes it personally. it's not about the sales in his mind. >> here is the question. brian, you made a really good point. it's a father defending his

daughter. trump doesn't seem to see the lines he's crossing with this. number one it's a president. number two, it's a president talking about the commercial interests of his family. which they worked hard to distance themselves from in january. >> i'm not saying it's right. i can see a situation where the president is sitting there, he assess steaming, he's stewing. >> he's defending his daughter. he's mad. >> daddy's little girl. >> ivanka doesn't need defending. she's a grown woman. but let's be clear, too. there is a big online social media push by the left. grab your wallet, whatever, who has said boycott anything ivanka. is there a counter -- is donald trump sitting there thinking can i be a counter balance to this huge push to boycott ivanka trump? >> potus twitter account retweeted the donald j. trump account. >> you never retweeted yourself?

>> it is the president of the united states tweeting. there's a difference in the two accounts, right? >> sean spicer's comment, the president didn't criticize grab your wallet campaign, which is an attack on trump, policies and his government. but he criticized nordstrom, which never criticized the president or his policies. >> a huge donor to the democratic cause, by the way. if you go to open secrets, it's a corporation -- >> your stuff's not selling. that's not a policy position. >> maybe they were on his radar anyway. >> let's get the actual language. courtney reagan is here, retail reporter. did nordstrom mention policies? >> did not. >> donald trump at all? >> did not. they talked about how every year they call back 10% of their assortment. if it is not selling, they get rid of it and bring in stuff that they hope will sell. this is about business. this is not about politics. >> but if you're suspicious, you could know that whole process and say -- >> right. >> -- they used that as a cover to get rid of something that was

politically problematic. >> maybe it was maybe people weren't buying the trump, ivanka trump merchandise because of the boycott. still you get to the same point. sales are low. why would nordstrom as a business carry a line, take up valuable space in store. >> when they have so much trouble already. >> that are not selling and so they get rid of it. >> michelle they're a business. so they're going to align whatever politics they may have with what they perceive as their business interests. and i think courtney would back me up. this is a chain that derives a large share of its revenue from urban women in blue states. >> that's right. we talked about it earlier on the show. 206 of nordstrom's staores are n states that went blue. >> it is a direct sort of retribution toward trump's policies then? >> or simply making the point it's -- >> i didn't get that at all. >> so ivanka trump's clothing line that nordstrom is discontinuing because sales fell? >> right. >> sales randomly happened to fall and dropping it also

aligns -- >> it's 100% the boycott. >> but if it is -- >> sales are down. >> they could be ugly. >> i'm not trying to defend trump. why don't we all just agree? that's not as good of a tv segment. i'll take the other side. if you're donald trump, little baby frank, okay, your boy has got some clothing line. >> two daughter. >> two daughters. and one of them already does. so that's fine. >> really? >> no. almost. she does make her own clothe. >> only in new york. >> everything about your family is overachieving. if your kid -- and he's the president. i get t i have a 13-year-old daughter f your kid is under attack by this online thing, all these social media, social justice groups coming after you and nordstrom caves to that, you will be ticked off. >> why does the office of the president of the united states retweet donald trump's twitter account? >> because it's daddy's little girl. >> but your daughter it's not for the office of the

president -- >> melissa, i didn't say it was. there's a lot of things that we could start the sentence, this is not what presidents do. >> i get it. >> because this is all new. this is all new. >> i get it. >> so it is what presidents do. >> it is now. >> that's true. by definition, right? >> do you guys remember billy beer? i never saw jimmy carter go out and defend billy beer because people weren't taking enough of it. >> that was so long ago. >> i know. the problem is -- >> what if there was an anti-social media had existed in '79? >> the problem is the hypocrisy from ivanka to donald said we are distancing ourselves from our company. we are no longer going to be involved in our company. we won't care about it. it's peanuts compared to what we're doing to make america great. you go back to use the office of the president to say this store stopped taking our daughter's products and, therefore, that's worth my time. that just negates everything they've done to separate

themselves from their commercial interests and feeds the richard painters of the world to say see, they're just in it to make a lot of money. >> meantime nordstrom shares are higher. >> they are, after all that. >> it's a real question. if you're a store could you phase it out but not put out the press release? >> so right now -- >> just stop buying it but not put out the release? >> you certainly could. tj maxx and marshall's have said they are still carrying it. but "the new york times" said there was a memo sent out to employees telling them to pull off the signage, mix in the merchandise. once it's not highlighted, if it's not selling, then they quietly pull it. >> just don't buy it but don't announce it. i bet thaer they'll do it. >> good discussion, guys. >> that was fun. ge shares, they're down 7% so far in 2017. jeff immelt's plan for general electric finally going to get

this stock moving? lower again. it's lower over the last 15 years. "power" will discuss in two minutes. ♪ [ girl giggles ] when you have an equity summary score that consolidates the stock ratings of top analysts into a single score, you realize the smartest investing idea isn't just what you invest in, but who you invest with. isn't just what you invest in, if only the signs were as obvious when you trade. 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.

hi, everybody. i'm sue herera. isis gunman with accused of killing at least six red cross workers, all afghans in a convoy carrying supplies in northern afghanistan that had been hit by deadly snow storms. two other workers were unaccounted for. rex tillerson meeting with his canadian counterpart at the state department. her visit is expected to lay the groundwork for an anticipated visit by prime minister justin trudeau. national weather service workers in mississippi to assess the damage caused be a severe storm there. preliminary reports show a tornado may have ripped through that area. buildings were damaged and trees uprooted by this storm. data from the distilled spirits council shows the industry has taken market share from beer for the seventh straight year. last year liquor sales reported a 4.5% jump in sales with sales

volume up 2.5%. that's the news update this hour. brian, back to you. >> sue, thank you very much. over the past decade, ge ceo jeff immelt has been completely remaking the company and the stock has slowly creeped up to nearly 30 today. so will the continued push for change at ge finally have the stock break out to new highs? joining us now, morgan brennan. >> certainly the question and one a lot of investors would like to know the answer to. this is not the same company that your father invested in. a jeff immelt announced plans to exist the financial business, spurring a $2.5 billion bet. immelt laid out a three-year timeline. we're two years in. it's been mixed so far. $2 million in divestitures.

subjecting ge to stricter regulation gone. hard-hit oil and gas division merging with baker hughes. margins growing, service orders growing. analysts say free cash flow lags. missed 10 of past 13 quarters. guidance was lowered past fall. emerging from an industrial recession and ge is well positioned as those conditions improve. the austin power business should be a profit powerhouse by 2018. and we've got that big bet on tech. 3d printing still small but leading a huge trend. 65% of the revenues inherited by immelt have been divested, and will likely mark his tenure which started before the 9/11 attack. ge trading at 29 a share.

but down 27% since he took the helm in 2001 or up 5%, including dividends, versus the dow's 104% surge. the question now, can immelt pull all this off and actually carve out a legacy that he is willing to retire on? we'll have to see. >> meantime this is a big one, morgan. jeff immelt will be on jim tonight, a big-time interview 6:00 pm on "mad money." they'll talk about this whole restructuring that morgan just told you about. cannot miss that. 6:00 pm tonight. jackie deangelis joins us from arkansas where about half of the keystone pipeline sits and much of the steel sitting came from overseas. apparently somebody also forgot to bring a weed wacker and lawn mower.

jackie deangelis. >> good afternoon to you, brian. the big question, of course, is when will these pipes go into the ground? we're not 100% sure yet. 300 miles of pipeline here. each piece of it weighs over 23,000 pounds or just about roughly. let me correct myself. when this will move north all depends on how you read president trump's executive order. even people in the industry are confused about it. the president said he wanted the pipes made here. these pipes were made here in little rock, arkansas. but the steel, as you mentioned, is sourced internationally. it comes from all different kinds of places like china, korea, japan, italy, turkey, india, just to name a few. meantime, the question, of course, is if we can make the product here, steel companies certainly say you can source it here but it's going to take a little while for them to ramp up and meet the demand. at this point, there's a lot of confusion around what exactly is going to happen. and i would say this. the president's intention

probably isn't to take this pipe and sell it for scrap and make it worthless. it's probably for future projects. but the point right now, as with so many of president trump's policies, is that we just don't know, brian. >> reporter: waiti i . >> waiting for a lot of clarity there, jackie. i'll take it. we'll introduce you to three french women who are a threat to the euro. the cougar, the nationalist -- >> what? >> -- and the one who got paid $1 million not to work. aeldly. their stories and why that matters to the u.s. next on "power lunch." across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow - today at esd.ny.gov

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>> welcome back. the euro under threat again. she thinks the countries in the european union should abandon the euro and return to their own currencies. a lot of political analysts didn't think she could win the argument until the other two candidates came under clouds the last week. you thought the u.s. election was weird? listen to this. francois fillon was accused of

getting his wife a job. and then he met his wife when he was 15 years old and she was his high school teacher. she's either 18 or 24 years older than him. even in socially liberal france where affairs are very common, this has been a bit much. so, is lepen going to win and end the euro? let's bring in samirsaman from wells fargo. >> thanks for having me. >> they've raised their probabilities from 5%, 10%, to 30%. in the wake of donald trump winning here, a lot of people are starting to think she could be the next president of france. what do you think? >> if we've learned anything over the past 12 months there's a greater uncertainty around polls and how reliable they can be. what we try to do is rather than

focusing on probabilities and trying to move them up or down we try to look at markets that are most or least discounting these adverse outcomes. from that standpoint it's fascinating that you still see the euro hanging in as well as it has, despite the rate disparities where the u.s. looks so much better. >> if you thought frexit and, hence, the end of the euro, were coming unless some people argue france is weak, that would leave stronger germany. if weak players leave, some think the euro could strengthen or would this be pure disintegration if she gets her way? >> still way too early to tell. investors in the short term will focus on. they'll want to be compensated. even if it leads to a stronger euro, think brexit and what that did to the pound. if you think dollar has room for the upside you would think about commodities as a possible victim. you would think about high yield

where credit has tightened way down, where things could cheapen up a little bit. there are some areas that are probably a little too saenguin around what's going on in france. >> would you buy that or could it fall further? >> we would stay away from that. they are still very much on the low end for compensation in terms of the risk you're taking on a duration basis and then you throw on that currency component where, again, the dollar growing higher in that 5% to 6% range. if you have the b.a.t. -- >> border adjustment tax? >> correct. that could put more pressure on the dollar. we're thinking the dollar does fairly well this year and develop market that doesn't do well because of low yields and headwind from the currency. >> i know you're a financial analyst and wall street analyst. do you see any eerie similarities with the united

states in that lepen is a big fan of russia, and the harshest stuff i've seen against these two other candidates out of rt, russia today, the same influence that russia was trying to do here. do you see it there in france? >> we focus much more on the financial side than the political side. you are seeing some swinging back of the pendulum where you have had, call it russians sanctions and these other policies in place. just at the margin, you know, a lot of different countries are questioning as to whether there might be a better way to do these things and work more cooperatively toward forces that are more disruptive than russia. >> would russia be a buy if she wins? >> again, russia is kind of a tough nut to crack. it tends to trade so much more in line with commodities and oil prices. we are a little more bullish on the dollar. we are a little bit less positive on commodity prices especially on oil. you see those counts come back and russian equities have rallied so much, we would

probably focus on a broader basket of emerging markets. >> got t thanks, sameer. >> thank you. last year's best performing sector is one of this year's worst performing sectors. is it a bailout or buying opportunity? why does netflix trade like a pizza company? lots of questions. we'll be back with some answers. what if we could stop the next epidemic before it happens? what if technology gave us the power to turn this enemy into an ally? mosquitoes are the ultimate field biologists, taking blood samples from every animal they bite. microsoft and its partners are using smart traps to capture mosquitoes and study the dna they collect. using the microsoft cloud, we can analyze over 100 million pieces of dna in every sample,

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the xle energy etf is recovering alongside the price of oil, after hitting its lowest level since november earlier today. trade energy stocks with the trading nation team. boris schlosberg and david sieberg. i follow the energy sector very closely and know your analysts have upgraded some individual names. do you have a broader view on the macro xle? >> for the near term it looks like it's a level you want to step in and take a look from the long side, i caution you,

however. oil, in general is in this trading range of 50, 55ish. we need to see the global, the data come out probably april-ish to really indicate that the opec, you know, cuts have been held by the constituents. we believe it to be the case. we've been hearing about iran, talking about whether or not there will be an extension, et cetera. you've got to be very careful, brian. hedge fund positioning in the commodity is extreme. it's roughly the equivalent of a billion barrels versus short positions of 111 million barrels. >> listen, you can use the word extreme in different ways. >> it's extreme. >> like, dude, that was extreme. that was really cool or, dude, i don't even want to walk on that wire. it seems a little extreme. extreme in a bad way? >> it's not to the extreme we saw the underweighting and the massive short positioning when the commodity was near the bottom and the equities were getting dismantled. that was a very powerful move to

the upside. you saw a scramble. short covering and you saw, you know, obviously people try iingo get positions on to really catch that trade higher. now what we've had, oil will continue to do well, opec is going to continue to be there to -- that production cut is going to hold and global demand is going to pick up. we saw a massive -- inventory data that was bearish for crude. what happened? we didn't sell off in the face of being very, very crowded, long positioning, which in my opinion for the near term, at least a bullish sign. it tells me they have a line of sight essentially to where oil will be in the next three to six months and are comfortable with that. therefore you get a trade to the upside in the near term. >> boris, what do you think? do you agree with that view? >> no. >> no? >> i'm on the opposite side. we're extreme to the other side. oil is in a dangerous zone precisely because demand is not there. david is right.

inventory was five times what the market was expecting. goldman sachs came out with a report that said gas demand is at a recession point. the longer oil wallows around this $52 level the more likely it will go to the downside. if it drips to $50 a barrel, i think we're in perilous territory. i don't want to be long in this right now. >> different points of view. amazing that people can feel different about something and still have a rational discussion. i love both of you. >> we have a bet, boris. >> the bet is on. loser has to buy an ivanka trump dress. >> oh. >> and wear it. >> for more trading nation, head to tradingnation.cnbc.com. how netflix is changing how we live and how we love, next.

for decades the date night of choice was dinner and a movie which i always thought was weird because you want to talk to the person you're with. anyway, is the modern-day spin ordering in and binge watching netflix. shares of domino's pizza and netflix track pretty close to each other. somebody somewhere may think these two go together. bringing in the managing director at muzo securities and rob. neil, trying to make a little bit of a joke there. obviously seems like it. is this really the trend that could benefit both? is this the thing? >> look, we do believe that engagement continues to increase on netflix. there are a lot of new shows they keep putting out. they'll spend $6 billion in new content this year. i think it will drive current -- really strong engagement on the

platform. yeah. maybe you are seeing some sort of an effect where people are, you know, looking for quick, easy content and they want quick, easy food. use your phone for ordering a domino's pizza and use your phone to watch netflix at the same time. >> that's kind of the way it goes, rob. you wonder, is this like many other things we've experienced together, is this a fad? or is this for real? maybe this is a real paradigm shift and netflix is the new movie. >> yeah. i don't know if i would necessarily agree with that. if you look at some of the indicators of what people are doing outside the home, movie ticket sales have been flattish for several years. so the volume component of movie going has really not changed a lot. i would contend the similarities are that both companies have used mobile intelligence and internet technologies to deliver a better value proposition. you can order really easily on domino's today.

i think that's what they beat competitors to the market with. >> we really want it to be true. we think it's so convenient that, when you map netflix, it lies right on top of the pizza stocks. it's cable. come on! no? no takers? [ laughter ] >> yeah. i don't know that that's really showing in the empirical data to support that. but it's -- >> letting the facts get in the way! >> let's talk about that. the fact is netflix is at an all-time high. second day in a row. there was a report that they are interested in licensing some of their shows, doing t-shirts, mugs. they didn't experiment with hot topic. do you see this as a sign that netflix is maturing into a more -- i don't want to say disney-like because they don't have the theme parks but that's always the next step. when you produce content, you start merchandising. >> i think we're seeing net

evolve to becoming a global media powerhouse. if we think about what that entails, it's really taking some of your prime i.p. and starting to merchandise that. there are a lot of great kids' shows on netflix. that's original content. we could probably see a lot of it coming into toy stores, clothing, et cetera. phrases what "house of cards" may end up on t-shirts. there are a lot of ways netflix can mon tietize this treasure te that they have. this is the first in a long journey that we'll see netflix e evolve to becoming a media powerhouse. "check, please" is next. don't move.

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get help on options trading with thinkorswim, only at td ameritrade. "check, please." >> we spent a lot of time talking to nordstrom. their decision to no longer carry ivanka trump merchandise and the president's defense of his daughter's brand on twitter. take a look at nordstrom. so much for that. nordstrom stock is at session high. so maybe donald trump is actually making nordstrom great again. session highs on the stock. >> or is it that tweets are wearing off? remember lockheed martin, boom, the thing gets hit. lasted at least a day. now it didn't even last 20 seconds. >> that's true. now let's move on to giant

snakes. miami-dade fire rescue found a burmese python near a children's school. no children were injured in the attack. giant pythons can grow to 27 feet long. they are no longer available at nordstrom. [ laughter ] >> thank you. >> ceos walking in and out of the white house. which one is this guy? you were telling me in my ear, fred smith? fred smith, fedex. walking out. let's listen. this is the parade of ceos that we've seen. when i was there last week jamie dimon walked in and out. the intel ceo coming in and out earlier today. he was talking about the big plant that they're going to reopen in arizona. but do you guys remember this many ceos coming and going in an administration? >> what's amazing is that you never know -- they can be walking in, having what they call a great and productive meeting and the next week, a twitter backlash of that

industry. >> i tracked fred smith's tracking number and it says he is still in a memphis distribution center. >> he's here all week! >> i'm off. today is my friday. going to the mountains of colorado for a couple of days. >> thanks for watching "power lunch." "the closing bell" starts right now. hi, everybody. welcome to "the closing bell." i am kelly evans at the new york stock exchange. >> i'm scott wapner in for bill griffith. the dow dragged down by the financials. >> intel ceo meeting with president trump at the white house, one of the many ceos going through today and announcing his company will invest $7 million in a factory in arizona. it comes days after intel joined more than h