ten-year high. >> 20 seconds left. dow is now plus 140 points on the day. never traded higher than it did in the last few minutes, 20,410. all three of the major averages, the russell joining suit there. "power lunch" picks up that story among other big stories of the day right now. >> taxes, trade, job, borders and pipelines. it is all on the table as president trump meets with the man who governs america's most important trading partner. it is trump and trudeau at the white house. also ahead, crisis in california, america's tallest dam on the brink as nearly 200,000 people are forced to flee their homes. why weren't earlier warning sign s ignored? i'm brian sullivan. "power lunch" starts right now.

>> i'm tyler mathisen. you like -- no, watch cnbc. another record day on wall street with dow, nasdaq, s&p 500, all hitting all-time highs. we are at session highs right about now. just a hair off of it on the dow. s&p 500 on its longest win streak of the year. five straight sessions higher. here is your stat of the day with today's gains. s&p 500 has topped $1 trillion in market value for the first time ever. melissa? >> wow, what a stat. welcome, i'm melissa lee. president trump and canadian prime minister justin trudeau meeting inside the white house right now. the two will hold a joint conference in less than an hour from now. eamon javers is live at the white house. >> reporter: another day of pomp

and circumstance here at the white house as the prime minister and president have been meeting with a group of female ceos and executives, everything from energy to auto parts to finance companies, represented in the room there. the president said he wants to focus on the role of women in the economy. here is what he had to say. >> women are the primary source of income in 40% of american households and households with children under the age of 18. in order to create economic growth and lots of very good well-paying jobs, we must ensure that our economy is a place where women can work and thrive. >> so that is the message of the day today here at the white house. that's what they want to be talking about, as you see the prime minister there in front of your screen, facing the president of the united states. we're going to see this news conference in about an hour. watch this news conference to see the degree to which it's taken over or not by questions surrounding the fate of some of the members of donald trump's

inner cabinet and senior advisers here, particularly general michael flynn, the national security advisers. some questions swirling about whether he will be able to keep his job here at the white house. so, watch that over the next hour or so and also that relationship between trudeau and trump, so important in donald trump's world to have that personal connection between those two leaders. we'll watch as they try to develop that over the rest of the day, guy. >> eamon javers, we will. we'll see you in a bit. >> you bet. two interesting data points as stocks hit record highs. etf has pulled in more money than any other etf and, number two, indexing giant vanguard now has, get this, $4 trillion in assets under management. bob pisani is on the floor of the nyse. bob, what exactly, if anything, does this tell you about the thundering herd masses of stock investors? >> it tells you that vanguard is associated with indexing, even though they have active

management. indexing is winning by the way, black box got 5 trillion. we have new highs across the board. new highs are expanding on stocks. want to show you sectors of new highs. not a lot of tech at new highs. tesla, seagate, adobe. banks have been there a while. all the regions like zion and regions financial. u.s. bancorp, big names like honeywell, emerson. it's not just the u.s. i want to emphasize the global breakout we've been seeing. major regions this year. the u.s. is underperforming. we're only up about 3.4% in the u.s. emerging markets in japan and europe are doing better than we are. we're seeing new highs in some of these global etfs today as well. vanguard pacific is at a new high, emerging markets is at a

new high. that's the whole world ex-united states. that's at a 52-week high as well. we're seeing this global reflation trade, commodities hitting 52-week highs, poland, peru, chile, australia, canada even 52-week highs as well. right across the world, new highs. back to you, guys. >> bob, thank you very much. apple one of the key drivers of this year's record run. the stock up more than 15% this year alone. right now, trading above its all-time closing high of $133 a share. the question is, can apple keep climbing? and what should the tech giant do with that massive pile of cash it is sitting on? let's bring in ameet darian who has a buy rating with $140 price target and will power of wr -- rw baird who has a buy rating in at 145 price target.

amit, i'm sorry if i mangled your last name. i'm just call you amit from now on. >> that works. >> if apple did that deal. do they need to? do you expect they will? we don't expect them to do it. i don't think they need to do a deal. a lot of discussions, does apple need to do a deal on the services side to grow the business? i would argue apple would probably go at it through collaboration, buying assets like -- may end up isolating them with other providers. apple will do what it did in the music industry way back in the day, go through partnership and collaborations versus do a deal. just because they get money back in the u.s., i don't think lack of capital was ever a reason for apple to not do a deal. just because they get it back in the u.s., i don't think it's a trigger for them to do a deal this time around. >> will, amit has laid out his

stake there. the names that people mention are tesla, if the company wants to get into the car business, netflix, if they want to go bigger into streaming or maybe even disney. are any of those likely? which one makes any sense, if any, to you? >> i think at the end of the day, they're probably all unlikely. they are interesting to ponder. we put a note out on this, evaluating each of those possible transactions on friday. what's interesting, as you put the pencil to the paper, looking at tesla or netflix. they just don't move the financial needle. you think about netflix, spending $80 on a company where the in connection hit really matters. they would be better served to jump-start their service businesses and. tesla, strategically, if they're really committed to building a car, which we're not sure they really are, could make some

sense. that potentially would be the more likely of the three. again, we don't think any of the three are all that likely. >> amit, if i'm an apple shareholder, i'm concerned part of the stock's run-up to this new high is the anticipation of the super cycle for the next iphone. my concern is that the stock is going to sell off before, perhaps, or maybe around the time the iphone is actually released. give me some catalysts to why i should hold on the stock through that point. what's going to come up, in your view? >> absolutely. i'll tell you three factors you have to look for and be excited about. super cycle. it's a logical one to look at. iphone 6 the stock continued to work after the product launch. second is the services business, right? that business is getting more real, 24, 25 billion. they've said it publicly they want to double that business. that's when united steel went to revenues and gross market on

etfs and this massive cash that comes back to the u.s., what is apple going to do with this? one acquisition i think they'll make is buy back their own stock as well as having dividend payouts. cap allocation going in your favor. services accelerating are the three reasons you want to own apple in the long run. >> part of figuring this out is figuring out what apple may want to be. i have three words in that vain, carpool karaoke, an original series with james cordon. is that a hint they want to be in more original series, which means they'll have to ramp up apple tv or do something else in media. >> brian, you're exactly right. as tim cook indicated, they kind of dipped their toe in the water, so to speak, on that front. i think content is a big opportunity for them. i think one of the more note worthy comments on the last call is their plan to double that service business over the next four years. they'll need to add new service.

original content, starting with music. but over time we would like to see them move into shows, movies. other original content we think would help solidify the ecosystem. >> so, you would buy this stock, 133 now. you're looking for it to go where, will and amit? >> in our case, we're at $145 target price. we're using 13 times calendar earnings, plus current net cash. look, each multiple from there is another $10 to the target price. >> we're going to have to break in, gentlemen. amit, will, thank you very much. we look at some tape of the president and prime minister of canada. mr. trudeau taking a stroll on the south side of the white house. looks like a nice day in washington. it is not that way here today in new york. icy and frigid cold. moments ago at the white house. we'll have a press conference shortly with mr. trudeau and

president trump talking to the assembled journalists for both countries. speaking of disney, one of the subtopics in the segment we just finished. a trip to the parks just got a little more expensive. $5 more costly for some single-day adult tickets which will go for between $107 and $124, depending on the time of the year. theme parks, disney's second largest division. they bring in nearly $17 billion in revenue and $3.3 billion in operating profit for the fiscal year that ended in september. banks doing well right now. there is a lot at stake for the sector this week. how to play it straight ahead. $89,000 for just one drug. outrage brewing over the latest company to hike prices. washington has taken notice. the very latest on that, coming up. the future of business in new york state is already in motion.

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i'm ricardo, a sales and service consultant here at the xfinity store in bellevue, washington. here at the store, we offer internet, tv, phone, customer service, home security. every situation is a little different. it could be about billing, simple questions like changing the phone number. sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. one of the great things about comcast, there's always room to move up. of course, it depends on you, how hard you work. ♪ welcome back to "power lunch." banks up big as financials press higher. not seen since september 2008. lot of play for financials this week, including fed chair januarietjanet yellin. mike, great to have you with us.

it feels like more of an advance that the banking sector has seen, batons passed. each incremental development, possible deregulation of the banking sector has been the next baton. at this point, what does the resignation of dan turullo mean for the sector? >> we had a love/hate relationship with turullo and dodd/frank. it's been a positive and a negative. positive side, i love where the regulation is that the u.s. banking industry has the most resilient balance sheet that it's had in a generation. in the past decade, banks have raised $700 billion of tangible equity, $1 trillion in cash and $3 trillion. they're strong enough to absorb not just one financial crisis but two financial crises.

>> that's the love part. so the hate part? >> can i finish with the love for a second? >> yes. >> i think bank sectors should get dan tarullo a valentine as day card saying thank you for improving the resiliency. that might seem surprising. a decade ago, around the time we were on your show, we upgraded bank of america. people were afraid about the resilienc resiliency, what was happening in europe. due to the confidence of the resiliency of bank america and u.s. banks we upgraded several stocks. bank investors have benefited. >> can i see the inscription? >> first of all where do you get a card this big? >> i know. >> you also brought in, literally, a tool box. what's in that? why do you have that? >> let's get to the hate part. >> yeah. >> what we hate about bank regulation is the lack of transparency, the gotcha mentality when banks have

numbers that could survive two financial crises, sometimes the fed says still no good. >> stress test, qualitative factors. when banks fail when they're otherwise doing everything right. what we brought here is the black box. and the fed has a black box. what we would say with regard to the fed's black box and the bank's stress test and ccar is throw it away. throw away the black box and improve transparency. >> does that come with president trump being able to appoint somebody to take tarullo's place? other fed seats are open, of course. >> the most important appointment by president trump is the vice chairman of the federal reserve and that's the person who will effectively take governor dan tarullo's place. the new fed vice chairman, we give them three points. number one, be pro safety. don't change the resiliency of

the banks. number two, pro transparency, giving back the black box. forget that. and number three, be pro efficient, pro simplicity. on that point the four largest banks are on track over five years to have over $100 billion of regulatory and control costs. $100 billion of costs. that needs to be reduced while preserving the resiliency of the banks. >> you have great staff, number of compliance options that could fill a stadium because of current regulations. >> take jp morgan alone. it's unbelievable. number of regulatory compliance people at jp morgan could fill madison square garden two times. for every four employees at jp morgan that's doing some sort of banking work, one person is looking over their shoulder for regulatory compliance. that's just too many. the right number is not 18% of

employees at jp morgan. it's not where we were before the financial crisis but there should be a happy middle ground between 2007 and 2017. >> how many total compliance employees? >> 43,000 employees of jp morgan involved in regulatory and compliance function. >> wow! >> governor tarullo, just so you know how mike feels about you, the inscription here is really nice. you're known as a tough guy. i'm sending this special valentine to let you see, governor tarullo, you're the only one i could ever love. you're everything to me. happy valentine's day. >> bank stocks are up 50% from their lows. we think they have another 50% to go over the next three years. there should be a lot of love from bank investors. >> does that make you incrementally more bullish? i know you're bullish because you're recommending for the first time in many, many years a lot of the top bank stocks. but does it make you bullish

that that block box could be thrown out? >> we don't need the trump bump. >> they're just gravy if it happens? >> exactly. >> got it. mike mayo. be sure to catch dick kovacevich and william isaac on closing bell today at 4:00 pm eastern time. allergan shares higher. all about optics. another pharma company in the news for hiking the price of one of its drugs. we're talking about a seventh-fold price increase. washington taking notice and has put the company on notice.

welcome back to "power lunch." outrage is once again brewing after an $85,000 price tag on its muscular dystrophy drug. congress wants some answers. meg tirrell is here with the story. meg? >> less than two weeks after pharmaceutical executives met with president trump at the white house. the chief topic was drug pricing. this outcry coming at a time when the drug industry needs it the least. marathon pharmaceuticals is a private drug company. they acquired this drug, not approved in the united states. it is approved in other countries available for about $1,000 a year. the company did some additional studies, got it approved in the united states and put an $89,000

a year price tag on it. congressman elijah cummings and senator bernie sanders are sending a letter to the ceo of marathon, asking for information on how they reached the price of this drug and how much they stand to gain. they said, quote, we urge you to significantly lower this price before it goes on the market next month. marathon's apparent abuse of government-granted exclusivie marathon's apparent abuse of government-granted exclusivixci periods intestine sentives to sell what should be a widely available drug. priority review voucher. it can by itself faster review of another drug or sell to company. these things have sold for $350 million in the past. they can get an automatic paycheck. >> having a higher priced drug with also exclusivity.

most drugs will, having patents, would make any kind of public or private company a lot more attractive, i would imagine. >> you would think so, yeah, not having any competition on this drug in the united states. patients were actually getting this drug overseas before under a system that allowed them to get the drug from overseas. >> isn't it a systemic problem that allows this to happen? >> that's what the congressmen are saying, abuse of the orphan drug, rare disease drug system. >> how does the treatment for muscular dystrophy fit in? that was just approved last fall and that could be priced around $300,000 a year. >> or even more because it's priced on weight. some say they could have upsides of $1 million per year. it was invented by serepta. it's a new drug and works differently. it tries to hopefully slow down the progression of the disease. there is some controversy whether it's proven to do that.

it is a steroid. a lot of patients use steroids, to help inflammation. >> to stave off the developing the disease. >> that's right. >> so investors so far are treating sarepta very differently? >> they are because sarepta toil add way on this for years. some folks say marathon bought the drug and raised the price. >> okay. we're going to talk to you about allergan but apparently we have no more time. >> okay. that's fine. coming up, flood watches are in effect for parts of northern california. thousands are being evacuated. we'll bring you the very latest on the eroding dam in oroville, california, and why so many warning signs were apparently missed. [vo] quickbooks introduces jeanette and her new mobile wedding business.

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hi, everybody. i'm sue herera. here is your cnbc update at this hour. antonio gutierrez says he deeply regrets the u.s. decision to block the former palestinian prime minister from leaving his

position in libya, but declined to directly criticize president trump. >> i believe he is the right person for the right job at the right moment. he has qualities that are recognized everywhere. he has a competence that nobody else has and libya requires the kind of capacity that he has. >> verizon is now offering unlimited data plans. customers can keep their current plans or opt for an $80 monthly plan for a single line. families, $45 for four lines. derek jeter and his wife, hannah, are expecting their first child, a daughter. hannah made the announcement on the players tribune, which her husband founded. she said she originally thought he was a pitcher. that's the news update this hour. it. y? welcome back. >> thank you very much. appreciate it. now to a developing story out in california. watch these pictures.

crews are working to repair an eroding dam. thousands have been forced to evacuate. steve patterson has the latest. >> reporter: last night there was a prediction of a 30-foot solid wall of water that may come through, unleashing on communities downstream from this dam. engineers were there on sunday and they found some damage that gave them cause for concern, enough to issue a warning for nearly 200,000 people who had to be mandatory evacuated from their homes, told to leave basically immediately because they felt like it was so in danger it may break within the hour. then you had a panic of people trying to get as many items as they could out of their homes, into their cars caught in traffic jams, trying to escape this situation, escape this area. this comes after the primary spillway had already taken major

significant damage, 40-foot deep hole had already breached that spillway. that one was already -- engineers are back on scene, trying to determine where exactly the damage is so they can hopefully bring these boulders that are being loaded behind me and fill that breach so once again it can be at least structurally sound. there's a thought about lifting this evacuation order. they all have to do it within a certain amount of time. there are more predictions of more weather, more rainfall coming in the middle of this week. so, they're on a very tight timetable. evacuation still remains in place. still a very dangerous situation for residents living under the specter of all this. back to you. >> that was nbc's steve patterson reporting. sad state of the oroville dam should not surprise anybody. founder of common good has written extensively on the importance of repairing america's infrastructure and why fixing america's regime may be

the key to getting done. we've had you on to talk about this many, many times. in 1997, this dam came within a foot of overflowing. in 2005, some state agency said we need to fix it, upgrade it. all the agencies could not figure out what to do or who was going to pay for it. is this just a terrible example of how sort of, as you call it, the vulcanization of regulatory agencies have caused a true infrastructure crisis? >> a free-for-all around america's infrastructure. >> everybody is in charge but, to your point, nobody is really in charge? >> nobody is in charge. to get a permit you have to go to 12 to 20 different agencies. you want to fund it, you go to 1 to 20 different agencies. nobody gets much credit for fixing or building a 50 or 100-year pillar of our economy.

it goes and goes and at this point america's dams, for example, have a d rating from the american society of civil engineers. 2,000 dams are both deficient and are very hazardous were they to break. >> and in 2005, when there were discussions about building this dam up, department of water resources for california, metropolitan water district of southern california, state water contractors, metropolitan water district of kern county, santa clara district and alameda county water district all involved in trying to figure out what to do. to nobody's surprise, they ended up doing nothing. now we have this. how do we fix that? >> okay -- >> everybody wants a piece. >> first thing is we have to create clear lines of authority

in this country. you have to create responsibility for permits. right now, again, it could take years even to fix something that's broken. just to get the. and then we have to create clear lines of authority as to who is going to fix it. right now, they don't want any federal funds to go out to fix infrastructure because the government wastes too much money. that's true and we should fix that, too, but we can't let our infrastructure go at the same time. this is like a canary in the mine. >> how do you identify one agency that ought to be responsible in a case like this? how do you do that? >> there is a systemic risk in dams. you either give it to the core of engineers, if it's of

national significance or to a specific state agency. >> if you are to tell president trump which kinds of infrastructure needs attention the most, what would that be? >> clearly safety. dams and revies right up there. bridges are extreme ly rickety. we certainly need to control the air traffic control system. i mean -- >> new york, new jersey, governor's office, mayor's office on both sides of the rive river. >> nobody is going to make money if nothing gets done because 700

regulatory and environmental authorities are going to be all over every bridge. >> that's right. other countries, say australia, have a central infrastructure zbept figure out how to fund it with the funds available. if you don't create clear lines of authority both to decide what needs to get done and then also to give the permits, then nothing -- you have this free for all. >> it's a federal authority i assume? >> yes, federal authority. we have a three-page draft statute that would actually dramatical dramatically streamline the permitting process, one designated official to say how much environmental review is need, another official who can resolve the disputes among the bickering agencies and without that, it goes on for years. >> philip k. howard of "the common good." i know you a little bit. but i tell everybody to read your book.

try to figure out why nothing in their town is getting done, everybody governs but nobody governs. >> thank you. >> appreciate it. switching gears here, lego's batman movie dominating "fifty shades darker." to capture first place. "fifty shades darker," sequel to 2015's "fifty shades of grey" came in second. >> similar movie, lego and darker. >> it would be a whole different genre if you made fifty shades with legos. skits like this one sending snl to a six-year ratings high. >> any other questions? >> yeah. just mentally, though, are you okay? >> are you kidding me? >> melissa mccarthy, reprising her role as press secretary sean spicer this weekend, the show

grabbed a 7.2 household rating. you probably have no idea what 18 share means but it is the highest rating in the overnights since january 8th, 2011. that was hosted by jim carrey, which boosted to -- mean nothing to audiences that watch. >> there you go. >> those are big numbers. >> speaking of big numbers, stocks hitting sessions highs, caterpillar, the dow up 168 points, almost 1%. and three records, dow, s&p and nasdaq. does the rally have more room to run? a bull and a bear will make their case and tell us where they think your money is best right now. first to rick santelli at the cme for the bond report. hi, rick. >> hi. indeed, rates moving higher. they're not breaking any records getting there. intraday of tens, pretty much

sideways up two basis points on the entire curve. year to date, you could see we sit virtually unchanged. let's look at an etf, hyg, at the best level since july 2015. here is what happens when you keep that date the same and switch to investment grade. spreads have narrowed on both sets according to barclays. with yield differentiation going on, it seems it's just a yield enhancement for investors. "power lunch" will return after this break. this car is traveling over 200 miles per hour.

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they are really coming in, continuing to be pretty good. end of last week with about 70% of companies in the s&p 500 reporting, we actually had about a 3% average being on earnings. companies are showing that they have that wherewithal to

continue the positive trend. in addition on the top-down basis when we look at the leading economic indicators, things like wage growth and growing labor force participation, we continue to feel positively about those trends. and, finally, you do have a little bit of a policy tail wind with the trump administration policies around the various things of lower taxes and reregulation. there may be some risks to the outlook and potentially volatility. overall we feel we're in a goldilocks type of economy. >> you don't exactly see it that way. the word here is stock market is terribly overvalued on a variety of metrics with 1929 and 2000 the only times it's been more expensive. and we remember, or at least i do. >> how long have you been saying that, by the way? >> i was going to say, valuations don't matter until they do. let me start by saying i'm positive on regulatory relief and lower taxes. it's going to be good for the economy. but if trump follows the ryan

plan for every dollar of tax cuts there's going to be a dollar of tax increases. we have to put that all together. it's not going to be clean, unfortunately. if it was maybe i could be more positive. i think central bankers will still be a dominant force in how asset prices perform this year. a fed that's going to be increasing the rate of their hikes. we have ecb that is cutting qe by 20% as of april. bank of england will finish their qe and possibly raise interest rates and bank of japan is getting tested on a nightly basis with their qe. we can't look at what trump is going to do in a vacuum. if the stock market is right and growth is going to accelerate ten year yield won't be at 2.5%. it will be higher. the fed will be raising three or four times, not two times. >> among the concerns you have, lisa, inflation might take higher than you anticipate and that the fed might, therefore, raise interest rates higher and quicker than is forecast. so, respond to what peter just

said with that in mind. >> absolutely. so, we would agree with peter that there are some risks out there in the marketplace and chiefly, as you said, higher inflation and interest rates being one of them. that being said, our base case truly is still for a continuation of this goldilocks type economy. the reason why is while we've continued to see positive trends on the top down and bottom up, we do believe that central bankers have their fingers on the pulse, that they're being careful about how they do all these things, attentive to market action. they've shown that in the past. that's clear not just here in the u.s. but also overseas. >> are you expecting janet yellin to say anything of import to the markets tomorrow or the next day? i'm wondering because in the past the fed has cited global uncertainties essentially. >> favorite word. >> right as reasons to sort of step back and let the cards play out. why wouldn't you think that they would sort of be slow on it this time, too? >> they will be. but it's in janet's interest to

let the market know that march is still a possibility. to let the market get away with this 25% odds, now it's actually 30 last time i checked of a march rate hike gives them no flexibility. they want to raise three times this year. if they don't raise in march, they're beholden to the next three press conferences. >> they don't have to do anything. >> market flexibility. >> lisa, quickly to you. for eight years, the fed mattered ten on a scale of ten in terms of market importance. we talk -- i don't know about melissa. i've dreamt about the federal reserve nearly every day. where do they stand right now on a rank of one to ten, ten being the most important to you as an investor? >> well, we continue to believe it is important to keep our eyes on the fed. that being said, there is, we believe, some diminishing return to monetary policy. so, it's really a two-edge sword. certainly you want to continue to watch their actions.

and to the extent that they continue to raise expectations about what's going forward, that will impact markets. but there is a diminishing return to some of their actions. that's really where we go back to some of the things that trump and some of the other political leaders are looking at worldwide. >> lisa and peter, different views. that's why we have you on. thank you both very much. appreciate that. all right, folks. just a reminder president trump and canadian prime minister justin trudeau are set to hold their first joint news conference in a few minutes. moment that happens we'll bring it to you live. up next, though, insight from someone who has interviewed mr. trudeau on what we can expect today.

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welcome back to "power lunch." i'm julia boorstin. over 26 million viewers to the grammys, in the show largest audience since 2014.

adele winning five grammys and honoring beyonce in her speech, making plenty of headlines as well. david bowie winning all four awards he was nominated for, for his final album released just before his death. the most watched awards show according to neilsen. justin trudeau and president trump set to hold their first joint conference in just a short time. we will bring it to you when it happens. as we wait, let's bring in our own susan li, who has interviewed justin trudeau. >> number one issue, pretty simple. the economy, front and center, given that the u.s., of course, is canada's largest trading partner and the largest, number one by a long way.

i've been told that the economy is front and center and how canada really fits into the whole america first strategy. they want reaffirmation with nafta being renegotiated that the trade between the two will continue and economic fruitfulness will benefit both countries in the future. >> susan, sit tight. stay here. let's bring in candidate for the leadership of canada's conservative party, a man on tv in america a couple of times, kevin o'leary, newbie to television. first time in a long time. thanks for joining us. let's start with trade. china, our biggest trading partner. that's true if you take in only imports. canada is our single biggest export market. i would rather sell stuff than buy stuff. i don't know about you. how important is the u.s./canada relationship and how fragile is it right now?

>> in addition to what you just say, we're a balanced trading partner, almost equal in coming and going. what will be intriguing to see how they plays out, by the way, this meeting with trudeau and trump was more about tonality and candor, to see how these two leaders will work together. this relationship is actually accountable for 9.5 million american jobs. we are the number one trading partner with 38 states. while we're talking about that, understand there are two agreements in place between canada and the united states. i'm an investor in both countries. if we tore up nafta at the end of this press conference, another agreement that was negotiated way back with brian

maroni and ronald reagan. it didn't cover intellectual property in places like pharma. it wasn't as comprehensible as nafta ended up being. right now, while we're talking, and while we're waiting for the press conference, there's two side agreements going on also. and they are in trade and energy. they were planned for today at the same time. xl pipeline is back on the table. that's a big deal for both countries. >> susan, you mentioned that prime minister trudeau's popularity ratings have been on the decline lately. >> yep. >> what are some of the populous themes that he really wants to hit in order to regain a standing in the poles? >> part of the reason he skipped davos this year. he wanted to get to know the people of canada, talk about the

middle class, bringing it up. that's where he's drawing parallels with u.s. president donald trump. he says both of them have put into victory and brought into victory on the back of hope, middle class, trying to bring up those who feel like they've been left behind in the economy, including tax cuts for the middle class. that's the parallel he wants to draw, that we are working for the same people. >> susan li, sat down with the prime minister of canada, justin trudeau. thank you very much. what will be discussed and what will be the tone when president trump and canadian prime minister trudeau hold their first joint press conference? don't go anywhere. "power lunch" is back in two.

welcome to the second hour of "power lunch." i'm melissa lee. president trump and canada's prime minister justin trudeau set to hold their first joint press conference. we will carry it as soon as they begin. full team coverage is straight ahead. while we wait for that news conference to begin, let's get you caught up on this rally. by the way, another record-breaking day for the

stock market. dow, nasdaq, s&p 500 all hitting all-time highs. here is a staggering stat for you to start your week. s&p 500 hitting 20 trillion in total market cap for the first time ever. wow! one of the stocks helping to fuel that is apple, tech giant trading above its $133 closing high, getting closer to closing at an all-time high, already above its intra-day high. we're just waiting for the close. basically this say party, guys, that everybody has been invited to. not just in the u.s. you look around the world. many emerging markets have done better many some of the stocks on the move here in the united states, tesla up 4%, nvidia down 4%. hain celestial is down. t-mobile and at&t, those stocks on the move. >> justin trudeau and president

trump to hold their news conference any moment now. eamon javers is in the room where it's happening. >> reporter: we've got a packed room here in the white house. a joint statement from the two nations, a lot of what you would expect in terms of economic cooperation. they're talking about cooperating on infrastructure as well as cyber security and other things. they also talk about working together to finish the gordy howe bridge over the detroit river. so much of this focus will be on the relationship between these two leaders, who are very different in just about every respect. can they make a personal relationship work between canada and the united states in this new donald trump era? then, of course, watch for the questions. q & a will be so important. lot of political tension in the air as well as the economic cooperation they're talking about today, guys. back to you. >> eamon, thank you. u.s. managing editor of financial times and kevin

o'leary, chairman of oshares investments. welcome back, kevin. and welcome to you, jillian. it had to do with the possible tearing up of nafta. he said if it was done quickly and abruptly, it would be an intriguing move. i think i quote him correctly. would it be good or bad for canada, good or bad for the u.s. and the canadian trade relationship if that were to happen? >> i think it would be very bad. two numbers you need to bear in mind. one kevin mentioned, 9 million u.s. jobs currently dependent on sales in canada. the other one, though, is 2 billion. that's the value of goods across the canadian/u.s. border every day. even if there are existing deals in place, even if both sides want to renegotiate nafta quickly, the disruption is going to be very damaging in many ways. the good news for canada is that

president trump made it clear he's not out to be too aggressive in terms of the trading relationships with countries he regards as an equal in terms of the trade flows and canada/u.s. trade is not entirely equal but a lot more equal than u.s./mexico trade. you may see the tone more akin to the tone president trump adopted with prime minister abe when dealing with japan. that's the hope anyway. >> kevin, do you see it as gillian does, that it would be very disruptive? maybe elaborate on your choice of words moments ago that it would be intriguing zblets be pragmatic. take a very large sector, auto motive. many chassis for many vehicles crisscross that border multiple times as it's being built, components from canada, magna and back across the border for other elements to be added and back across the border again. if we put any kind of tax in

either direction, that whole relationship, that symbiotic relationship is completely, for lack of a better word, screwed. >> are you talking about the border adjustment tax, as opposed to nafta? >> that will not work on automotives. you talk about putting a strategic pipeline, xl, in, which i'm an investor, $3.2 billion in the hole waiting through all of that obama eight years, just getting messed around and getting that thing done. if trump puts it through you would want to know with certainty that anything flowing through there is not taxed. that's friendly oil from the canadians to the americans. of course, we want that relationship. i don't want that to be taxed as a border tax because it makes the whole thing uneconomical for me as an investor. so these are two sectors we should deal with right out of the gate. >> gillian, this could be a golden moment for the prime minister to press his case about the impact of a border

adjustment tax or border tax separately. >> absolutely. we can certainly expect prime minister trudeau to be talking about that. he's trying to steer a careful line, though. editorials in canada were saying he mustn't become a teresa may and look like he's becoming trump's poodle and yet he doesn't want to look like australia's prime minister and get into a fight. prime minister abe of japan, president trump found that key, a grown-up discussion. that's what justin trudeau has to try to do. he is charismatic, a good people person and may be able to find that chemistry but it won't come naturally. >> our nations have a lot of common but there are many differences as well. prime minister trudeau had effectively said about a month and a half ago that there are many things we hold in common but there are many values that

canada has that america hasn't prioritized. what do you think will be the biggest sticking point between the two countries and between the two men? >> i'll give you an example of one being debated right now. when you apply for refugee status in the united states and make that claim to the government we have an agreement that you can't cross the border and ask for it again in canada. that's happening right now. the volatility, immigration policy of the u.s. has all kinds of people crossing the border and asking for the same status in canada. by law, we must turn them back. that's an issue we have to deal with. canada is a very inclusive society. for example, many tech companies are exploring the idea of building coding centers in canada than inviting refugee states that are not invited to the u.s. for example, persian coders are very, very strong. can they come to canada, get their passports and yet work for a large tech company in the u.s.?

volatility in immigration policy is probably one of the biggest issues that has immediate economic impact on both sides of the border. all kinds of people are asking to qualify not only individually but whole families to come in and work for american companies, as we speak. >> gillian, i think kevin has put his finger on a critical issue here. that is how each of our two countries face the refugee situation. elaborate. >> i was going to say, the issue about coders going to canada is not theatrical. already people in silicon valley say never mind about bringing immigrants to working coding centers in canada. maybe we should be moving some of our coders who are currently in the u.s. north of the border so we won't be worried about the threat to remove h1b visas and things like that. it's possible you could see jobs going north in the coming months. if that happens it will be very interesting to see whether president trump responds by

loosening some of his aggressive talk on immigration and visas or whether, instead, you start to see a nasty if not war then war of words. >> gillian, your predecessor -- >> exactly. >> have you been waiting for this question? yeah. she moved north, now basically is the head -- foreign minister, basically the top trade person aside from the prime minister. you know her well. what do you think she is going to bring to the table with this administration? >> well, i've known her, in fact, for 25 years. we started our careers together at the same time. she's, in fact, ukrainian descent. i can say that she's very savvy, very sharp, whip sharp. she's also, though, very good at dancing around difficult egos and difficult people. frankly, anybody who can survive in the territory like the former soviet union and form all men of oligarchs should be able to

survive on the international stage. she managed to pull off a coup in terms of a deal between the eu and canada. if she has the stamina for that, she will be one of canada's better assets. >> you're talking about oligarchs in the newsroom, right? >> exactly. >> but the trick is egos, as we all know, are right there. >> exactly. well put. >> so, kevin, let's turn a little bit to that trade question. you say it is roughly imbalanced. apart from automobiles and auto parts, what are the key and petroleum products, what are the key things that move back and forth across the u.s./canadian border? just so we know. >> another big one, lumber. in canada, the canadian companies have two type of soft wood lumber agreements, harvested private lands on the east coast and government on the west.

we're a source of lumber for the housing market in the u.s. if that somehow gets taxed again that's going to cause inflationary price point pressure on housing in the u.s. that makes no sense. in addition to protein, as you know on the east coast, nova scotia waters bring about the best surf, clams, oysters. >> they're delicious. there's nothing better. and they go great with o'leary wines. that said, kevin, let's say donald trump, because one of your biggest exports is car parts. let's say the president, who has been all over the auto industry says we're going to tax canadian made auto parts that come into the united states. what would you say to president trump? >> that is a disaster. that kills american jobs in a huge way. agreements with companies like magna that make car parts on both sides of the borders, very complex. every year -- you know this. the nature of what's put inside a car gets more and more and more complex with more technology. many of these agreements are built on both sides of the

borders and crisscross back and forth. it's not even possible to understand how you unwind that without causing destruction of jobs across the border. when we see this press conference, you'll get the tonality of canada being very positive and the bureaucrats underneath it will go to work. it took years to negotiate nafta, which came into being 23 years ago. all in all, by measures between canada and the united states it's been a very balanced, positive relationship. mr. trump initially started talking about nafta and mexico, not a balanced trade situation. that's way out of balance. i don't know if he'll differentiate between nafta in mexico and nafta in canada or the plan is to scrap an agreement that took decades to put together. it's built and become a $700 billion a year trading agreement. you can't fix that overnight. as i say, it will be intriguing. >> pitfalls and friction points

if one were to tear up nafta. that doesn't imply that something comes behind it to replace, that bilateral agreements don't come behind to replace. that will take a while, albeit, to cover all these industries. >> no question. you get down to the nitty gritty of the interdependency on major sectors like automotive, softwood lumber, gas and pipeline deals, these things -- that's why i call it intriguing. it is nothing less than intriguing. feen they tore up nafta, you have a sub agreement already in place. i don't think donald trump will be tearing up two agreements at the same time. that's unfathomable. i don't understand how you would do it. >> but -- >> go ahead, gillian. >> i was going to say there's an awful lot we don't yet know about donald trump's foreign policy. two things we've seen in the last two weeks. one, he is starting to moderate some of the shocking elements from what he did before. it's very important to stress

that. it's very important when you're looking at the abe/trump meeting to know just how normal it was. secondly, it's increasingly clear that donald trump is making a distinction between what he regards as countries that are like his equals and canada are sort of in that territory. and others like mexico and china, which he think has been undercutting american companies. i think more and more we'll see that distinction. i completely agree with kevin, we'll see a much more moderate statement than many had expected. another thing to bear in mind. a number of companies pointed out that 40% of the goods are imported from mexico actually contain made in america components. for canada, that's even higher. that comes back ought point that kevin made. 9 million jobs are resting on exports to canada right now. donald trump knows that and he's not going to risk those. >> gillian tete and kevin

o'leary of shark tank and whoever knows what else. thanks a lot. s&p adding 14 points or .6%. nasdaq composite .6%. all three major indexes hitting interday highs. financials are higher by 11.5%. number of 52-week highs, shars s of apple. apple shares trading above the all-time closing high of 133. we are looking very carefully at the level of 134.54. that is the all-time intra-day high for shares of apple. that's sort of the level we're concentrating on now. >> very broad-based rally. best performing stock right now

is goodyear tire and rubber, nucor, mosaic seagate, macy's. it's not as if one group is dominating everything right now. broad-based rally amid small, mid, large caps, et cetera. i know politics have sort of dominated. fed testimony tomorrow. janet yellin will be speaking tomorrow. whether or not we'll get a fed rate hike in march. that's on the table, off the table. a lot more going on than just these daily press conference and saturday night press conferences. >> over/under on how many tweets out of the white house in response to her testimony, if any. it will be very interesting to see how president trump reacts to what the fed chief says. >> the markets are widely expecting janet yellin to leave. any deviation from that could cause some gyrations here. of course, the market has been

very, very calm when it comes to the volatility index, if we take a look -- actually, the prime minister of canada and president of the united states walking in. let's listen in. >> thank you. prime minister trudeau, on behalf of all americans, i thank you for being with us today. it is my honor to host such a great friend, neighbor and ally at the white house. very special place. this year, canada celebrates the 150th year of confederation. for americans this is one of the many milestones in our friendship and he we look forward, very much forward, i must say, to many more to come. our two nations share much more than a border. we share the same values. we share the love and truly

great love of freedom and we share a collective defense. american and canadian troops have gone to battle together, fought wars together and forged the special bonds that come when two nations have shed their blood together, which we have. in these dangerous times, it is more important than ever that we continue to strengthen our vital alliance. the united states is deeply grateful for canada's contribution to counter the isis effort. thank you. now we continue to work in common and in common cause against terrorism and work in common cooperation toward reciprocal trade and shared growth. both our countries are stronger when we join forces in matters of international commerce. having more jobs and trade right

here in north america is better for both the united states and is also much better for canada. we should coordinate closely and we will coordinate closely to protect jobs in our hemisphere and keep wealth on our continent and to keep everyone safe. prime minister, i pledge to work with you in pursuit of our many shared interests. this includes a stronger trading relationship between the you states and canada. it includes safe, efficient and responsible cross border travel and migration. and it includes loes partnership on domestic and international security. america is deeply fortunate to have a neighbor like canada. we have before us the opportunity to build even more

bridges and bridges of cooperation and bridges of commerce. both of us are committed to bringing greater prosperity and opportunity to our people. we just had a very productive meeting. with women business leaders from the united states and canada where we discussed how to secure everything that we know. the full power of women can do better than anybody else. we know that. i just want to say, mr. prime minister, that i'm focused and you're focused on the important role women play in our economies. we must work to address the barriers faced by women and women entrepreneurs, including access to capital, access to markets and, very importantly, access to networks.

in our discussion today we will focus on improving the ways our government and our governments together can benefit citizens of both the united states and canada. and in so doing, advance the greater peace and stability of the world. mr. prime minister, i look forward to working closely with you to build upon our very historic friendship. there are incredible possibilities for us to pursue. canada and the united states together. again. thank you for joining us and i know our discussions will be very, very productive for the future of both of our countries. mr. prime minister? >> thank you, mr. president. good afternoon, everyone. thank you very much for joining us. i would first like to start by extending my sincere thanks to president trump by inviting me

down to washington. any day i get to visit our southern neighbors is a good day in my book, particularly when it's so nice and warm compared to what it is back home. we are suffering under a significant winter storm that's hitting our atlantic providences particularly harsh. i just want to send everyone back at home my thoughts as they shovel out and impress on everyone to stay safe. [ speaking foreign language ] >> translator: we need to talk about the unique relationship between canada and the united states. >> citizens on both sides of the 49th parallel have understood that the bond between our nations is a special one. no other neighbors in the entire world are as fundamentally linked as we are. we have fought in conflict zones together, negotiated environmental treaties together, including 1991's historic air

quality agreement and we've entered into groundbreaking economic partnerships that have created good jobs for both of our people. canadians and americans alike share a common history as well as people-to-people ties that make us completely and totally integrated. our workers are connected by trade, transportation and cross-border commerce. our communities rely on each other for security, stability and economic prosperity. our families have long lived together and worked together. we know that more often than not, our victories are shared. and just as we celebrate together, so, too, do we suffer loss and heartbreak together. through it all, the found agencial piagency foundational pillar.

pretty complex and we won't always agree on everything. but because of our deep, abiding respect for one another, we're able to successfully navigate those complexities and still remain the closest of allies and friends. make no mistake, at the end of the day, canada and the u.s. will always remain each other's most essential partner. and today's conversations have served to reinforce how important that is for both canadians and americans. as we know, 35 u.s. states list canada as their largest export market and our economies benefit from the over $2 billion in two-way trade that takes place every single day. millions of good, middle-class jobs on both sides of the border depend on this crucial partnership. maintaining strong, economic ties is vital to our mutual

success. we're going to continue to work closely together over the coming years so that canadian and american families can get ahead. [ speaking foreign language ] >> translator: list canada as their largest export market and our countries benefit from $2 billion in two-way trade that takes place every single day. millions of good middle-class jobs on both sides of the border depend on this crucial partnership. maintaining strong economic ties is vital to our mutual success. we will continue to work closely together over the coming years so that canadian and american families can get ahead. >> i would like to highlight just a few specifics that president trump and i discussed today. at the end of the day, the president and i share a common goal. we both want to make sure that

hardworking folks can go to work at a good job, put food on the table for their families and save up to take a vacation every once in a while. that's what we're trying to do here. today, we reiterated that our nations are committed to collaborating on energy infrastructure projects that will create jobs while respecting the environment. and as we know, investing in infrastructure is a great way to create the kind of economic growth that our countries so desperately need. in that same vain, we know that ensuring equal opportunities for women in the workforce is essential for growing the economy and maintaining american and canadian competitiveness on the world stage. as such, the president and i have agreed to the creation of the canada/united states council for advancement of women entrepreneurs and business leaders. this initiative is more than just about dollars and cents. this is about ensuring that women have access to the same

opportunities as men and prioritizing the support and empowerment of women who are senior business leaders and entrepreneurs. in doing so, we'll grow the canadian and american economies and help our businesses prosper. [ speaking foreign language ] >> history has demonstrated time and again that in order to tackle our most pressing issues, both foreign and domestic, we must work with our closest allies, learn from each other

and stand in solidarity as a united voice. with the level of economic and social integration that is unmatched on the world stage, canada and the united states will forever be a model example of how to be good neighbors. winston churchill once said that long canadian frontier from the atlantic to the pacific oceans guarded only by neighborly respect and honorable obligations is an example to every country and a pattern for the future of the world. that, my friends, is the very essence of the canada/u.s. relationship. i look forward to working with president trump over the coming years to nurture and build upon this historic partnership. once again, it's a tremendous pleasure to be here in washington. merci beaucoup. >> we'll take a couple of

questions. scott tillman? scott? >> thank you, mr. president. you just spoke about the desire to build bridges although there's philosophical differences between and you prime minister trudeau. how do you see this relationship playing out and are there any specific areas with which during your conversations today you each decided to perhaps alter or amend your stances already on those sensitive issues like terrorism and immigration? prime minister trudeau while only in its infancy so far, how do you see this relationship compared to that under the obama administration? >> well, we just began discussions. we are going to have a great relationship with canada, maybe as good or better, hopefully, than ever before. we have some wonderful ideas on immigration. we have some, i think, very strong, very tough ideas on the tremendous problem that we have

with terrorism. and i think when we put them all together, which will be very, very quickly. we have a group of very talented people. we will see some very, very obvious results. we're also doing some cross border things that will make it a lot easier for trade, a lot better, lot faster for trade. we have, through technology, some really great ideas and they'll be implemented fairly quickly. >> one of the things we spoke about was the fact that security and immigration need to work very well together. certainly, canada has emphasized security as we look towards improving our immigration system and remaining true to the values that we have. we have a very strong and fruitful discussion on exactly that. there's plenty that we can draw on each other from in terms of how we move forward with a very similar goal, which is to create free, open societies that keep

our citizens safe. and that's certainly something that we're very much in agreement on. >> mr. president, mr. prime minister and mr. prime minister, can you answer in english and french for us, please? a little bit of a follow-on my american colleague's question. president trump you seem to suggest that syrian refugees are a trojan horse for potential terrorism. while the prime minister hugs refugees and welcomes them with open arms. i would like to know, are you confident that the northern border is secure? >> you can never be totally confident. but through the incredible efforts already i see it happening of formally general kelly, now secretary kelly, we have really done a great job. we're actually taking people that are criminals, very, very

hardened criminals in some cases, with a tremendous track record of abuse and problems and we're getting them out. that's what i said i would do. i'm just doing what i said i would do when we won by a very, very large electoral college vote. and i knew that was going to happen. i knew this is what people were wanting. that wasn't the only reason. that wasn't my only thing that we did so well on. but that was something that was very important. and i said we will get the criminals out, the drug lords, the gang members. we're getting them out. general kelly, who is sitting right here, is doing a fantastic job. and i said at the beginning, we are going to get the bad ones, the really bad ones. we're getting them out. and that's exactly what we're doing. i think that in the end, everyone will be extremely happy. i will tell you right now, a lot

of people are very, very happy right now. >> canada has always understood that keeping canadians safe is one of the fundamental responsibilities of any government. and that's certainly something we're very much focused on. at the same time, we continue to pursue our policies of openness towards immigration refugees without compromising security. and part of the reason we have been successful in doing that over the past year, welcoming close to 40,000 syrian refugees, is because we have been coordinating with our allies, the united states and around the world, to demonstrate that security comes very seriously to us and that's something that we continue to deal with. [ speaking foreign language ] >> translator: it is clear if you want to have a healthy and secure society, safe society, you have to make sure that you maintain -- that you focus on

security. and we have welcomed refugees from syria. we have been very successful. but we have always taken our responsibility towards security very seriously. and our allies, including the united states, understand this focus very well. and they have done so since the very beginning. >> next, please? >> thank you. president trump, now that you've been in office and received intelligence briefings for nearly one month, what do you see as the most important national security matters facing us? and prime minister trudeau, you've made very clear that canada has an open door policy for syrian refugees. do you believe that president trump's moratorium on immigration has merit on national security grounds? >> okay. thank you. many, many problems. when i was campaigning, i said it's not a good situation. now that i see it, including with our intelligence briefings, we have problems that a lot of

people have no idea how bad they are, how serious they are. not only internationally but when you come right here. obviously, north korea is a big, big problem. and we will deal with that very strongly. we have problems all over the middle east. we have problems just about every corner of the globe, no matter where you look. we had a great meeting this weekend with prime minister abe of japan. and got to know each other very, very well. extended weekend really. we were with each other for long periods of time. and our staffs and representatives. but on the home front, we have to create borders. we have to let people that can love our country in and i want to do that. we want to have a big, beautiful, open door. and we want people to come in and come in our country, but we cannot let the wrong people in. and i will not allow that to

happen during this administration. and people, citizens of our country want that. and that's their attitude, too, i will tell you. we are getting such praise for our stance. and it's a stance of common sense. maybe a certain toughness but it's really more than toughness. it's a stance of common sense. and we are going to pursue it vigorously. and we don't want to have our country have the kinds of problems that you're witnessing taking place not only here but all over the world. we won't stand for it. we won't put up with it. we're just not going to let it happen. we're going to give ourselves every bit of chance so that things go well for the united states. and they will go well. thank you. >> canada and the united states have been neighbors a long time. and canadians and americans have stood together, worked together,

at home and around the world. we've fought and died together in battlefields in world war i and world war ii, korea and afghanistan. but there have been times where we have differed in our approaches. and that's always been done formally and respectfully. the last thing canadians expect is for me to come down and lecture another country on how they choose to govern themselves. my role, my responsibility is to continue to govern in such a way that reflects canadians' approach and be a positive example in the world. >> okay. >> translator: mr. prime

minister. >> will ask my question in french and then again in english. >> translator: mr. prime minister, i heard you directly. you said that canadian businesses, canadian workers are concerned for their businesses and for their work and jobs concerning the renegotiation of nafta. so, what guarantees did you get from this government that we will keep our jobs and our business businesses in -- >> during the last three months, you have denounced nafta. you have talked over and over about the mexican portion of the agreement. very little about the canadian one. my question is in two short parts, is canada a fair trader? and when you talk about changes to nafta concerning canada,

again are you talking about big changes or small changes? >> thank you. [ speaking foreign language ] >> translator: first of all, thank you for your question. it is a real concern for many canadians because we know that our economy is very dependent on our bonds, our relationship with the united states. goods and services do cross the border each way, every single day. and this means a lot of -- millions of jobs for canadians and good jobs for canadians. so, we are always focusing on these jobs, but there are also good jobs, millions of jobs in the united states that depend on those relationships between our two countries. so, when we sit down, as we did today, and as our teams will be doing in the weeks and months to

come, we will be talking about how we can continue to create good jobs for our citizens on both sides of the border and during this exercise, we continue to understand that we have two allow this free flow of goods and services and we have to be aware of the integration of our economies, which is extremely positive for both our countries. and this is the focus that we will have in the coming weeks and months to come. >> be aware of the fact that much of our economy depends on good, working relationships with the united states, good integration with the american economy and the fact is, millions of good jobs on both sides of the border depend on the smooth and easy flow of goods and services and people back and forth across our border. and both president trump and i got elected on commitments to

support the middle class, to work hard for people who need a real shot at success. and we know that by working together, by ensuring the continued effective integration of our two economies, we are going to be creating greater opportunities for middle class canadians and americans now and well into the future. >> i agree with that 100%. we have a very outstanding trade relationship with canada. we'll be tweaking it. we'll be doing certain things that are going to benefit both of our countries. it's a much less severe situation than what's taking place on the southern border. on the southern border, for many, many years, the transaction was not fair to the united states. it's an extremely unfair transaction. we're going to work with mexico. we're going to make it a fair deal for both parties. i think that we're going to get along very well with mexico. they understand and we understand. you probably have noticed that

ford is making billions of dollars of new investments in this country. you saw intel the other day announce because of what i have been doing and what i'm doing in terms of regulation, lowering taxes, et cetera, they're coming in with billions and billions of dollars of investment and thousands and thousands of jobs. general motors, likewise is expanding plants and will build new plants. fiat chrysler is at a meeting where they're doing the same. jack ma. so many people want to come into the united states. it's actually very exciting. i think it will be an exciting period of time for the united states and for the workers of the united states because they have been truly the forgotten man and forgotten woman. it's not going to be forgotten anymore, believe me. our relationship with canada is outstanding and we're going to work together to make it even better. and as far as the southern border is concerned, we'll get that worked out. we'll make it fair.

but we are going to make it so that everybody is happy. it's very important to me. thank you. thank you very much. thank you, ladies and gentlemen. thank you very much. >> all right. justin trudeau wrapping up their press availability. two real themes there. one was the mutual interest in trade between the two countries and also the question of security of the borders and availability of refugees come into canada and the united states, different approaches there. those were the two primary. >> definitely tremendous emphasis on two-way trade, emphasis on borders that would allow the flow of goods back and forth but no specific mentions like the border tax or border adjustment tax which could really pose a challenge. set aside nafta. those two items could pose a challenge to the flow of goods. >> and trudeau was very keen to highlight not only the dollar

value total but the dollar value per day and estimated number of jobs connected to canadian/united states trade, couple billion per day. crude oil major part of that, car parts, agriculture as well. those are the top imports from canada this way. >> press conference focused a lot on security. cnbc's josh lipton joins us now with retired four-star general keith alexander with more on the topic of security. josh? >> tyler, thank you. and thank you for being with us, general. i want to begin with michael flynn. communications were apparently intercepted by senior u.s. intelligence officials, that suggestion that we have real tension between this administration and the intelligence community. at the same time, as you know, president trump has said cyber

security, a top priority of this administration. how do you square those two. >> my experience in listening to him in closed doors, i didn't see that tension. i saw a president who was interested in getting the facts, listening to people, including admiral mike rogers, really having great faith and confidence in him. i think they want to get the facts. the dynamics in a closed door session is amazing. what he did going around the room, talking to people, listening was really impressive to me. and he looked everybody in the eye. he asked them great questions, including the intelligence community, potential dni and director of nsa. he listened to theirs, my response and others. i was really impressed with that

ability and actually i thought that's the president our nation needs to see. and i think that's how you square it. >> and if you are advising president trump, general, what would be your top two or three policy prescriptions that you would suggest to really improve strengthen the cyber security? >> he mentioned the ones that come to my mind but i'll give them to you up front. we have to get the government right, i.t. infrastructure right. we've got to get the public/private partnership right. how our government and our industry works together. and we've got to come up with a mechanism that the government can protect the nation when it comes under attack. those three things have to be done. and it's constitutionally right. the government is here for the common defense. yet today the government can't accomplish that job because it can't see it. so we need to address that. we need to fix it. we need to help industry. we've got to get government

right. >> one option you didn't mention here but it's a big topic in the security community. the country shouldn't just be reacting when it's attacked but more aggressively on the cyber offensive. and president trump, when he was on the campaign trail, he was a proponent of that. are you? >> well, there's two parts to that. i think we need to have sufficient reconnaissance ability to understand what the adversaries are doing so we can better defend our country. i would be reluctant to use offensive measures against a country as an element of national power unless it's well thought through, because our nation is not ready to be attacked in cyber space. so we have to be careful what we employ, given that somebody else could use that against us. first i would get our defense right. i would be prepared to act if necessary. but i would be careful in how i use that. >> one final question, general. my colleagues the nbc news reporting that the russians

could be thinking about returning edward snowden to the u.s. you were director of the nsa when those snowden rev layings hit. what's your reaction to that news? >> i would be surprised if they sent him back. but if they do, it should be under the conditions that have been set forward. he should face the consequences of what he did in a court of justice. he should account for all the things he has done. i think he would also have to give up what he has given to the russians. as a consequence, i'm not sure that they will give him up. i just don't see that happening. >> general alexander, thank you for your time. we appreciate it, sir. >> thank you. >> i'll send it back to you. >> thank you, josh lipton. our thanks to general alexander. >> apple could be headed for a record-closing high. trading above that level right now. could the stock trade even higher?

. welcome back to "power lunch". apple is trading above its all time closing high of $133 a chair. ubs out with a new note thinking apple is undervalued. joining us is our analyst, ubs managing director and i.t. hardware analyst.

great to see you. i want to ask you about this projection. by 2020 you said services could be 17% of revenue and 25% of profit. is that the natural trajectory that the services growth is on right now or does apple have to do something extraneous like acquire more content. >> tim cook said they think they will double services in the next four years. that implies about an 18% compound growth rate. it's currently at 20%. if you extrapolate that out they can get there. we imagine there will be 5 to 8 billion acquisitions to get to that number. but it's growing. >> what kind of acquisitions? >> we don't know. we don't think they are likely to make a big content acquisition in the naerm. they've shown some interest in content. we think they will pursue some organic original doesn't as opposed to do something very large.

steve, why is that? apple has never bean buyer. >> very focused company. they know what they are good at, what they aren't good at. they buy technology that fits in with them. they are a contents distributor in the past and not at that creator. not saying they won't do it but they will move cautiously. >> when saying the service is under valued you say it deserves more of a premium like paypal. >> paypal because it's similar to apple pay. the company has got a fairly similar margin and growth rate relevant to apple. we argue you shouldn't look at services privately, very much tied to the hardaway. you don't cell phone you don't get the service. the company believes service is not fully appreciated by analyst. if you put a paypal on what we think the earnings of services are the stock is at least 10% undervalued. >> in terms of paypal could that

possibly be in taerms of the realm of acquisitions could payments be an area of interest to apple? >> payments is an area of interest. at this point the company is not disrupting the current payment framework. they are working with mastercard and visa. to this point they are not looking to do a kind of a big disruptive end run around the current payment model. >> is there any big bolt on acquisition that makes sense to you? >> i can't comment on specifics. but, again, i think they tend to be a pretty conservative company. cook has said it's not that they are something of size we wouldn't do but it has to fit into their areas of interest which is home automation. we think transportation. although they don't talk much about that. augmented reality, virtual reality, areas of health i would look at. we're not looking for a big deal in near term. if they get repatriation of cash

from overseas that may be a strategy. thank you. by the way let's take a look at canadian stocks on the back of president trump and president trudeau's news conference. here's your team. aaron it erin we talked about trump, taxes, tariffs. the canadian stock market has done better than the u.s. stock market. do you think it will continue to do so? >> so, there are a couple of thing just to start this off about the canadian stock market that are really different from the u.s. and first thing is that energy materials are about three times the weight that they are of what we have in the s&p 500. so it's very much about energy and materials as much as we want to talk about border taxes and so on. one of the things up for discussion is that keystone pipeline which can actually be a

good thing for canadian stocks. plus valuations look decent. not at peak valuation like in the u.s. >> are they still a good value >> yeah. for the past, since november they stayed in a tight range as long as it tends stay below 18 times forward earnings. that's a solid entry point. >> let's go ahead and i don't know if we chartered the toronto stock exchange. let's do this. how does it took? >> what's really notable here is you have a fresh break out in the chart, in fact, that would signal to buy the index in anticipation of additional gains. what you'll notice about it is the index is round trip from where it was back in the summer of 2014, right back at those levels, pushing out to new highs, breaking above that resistance. we think it gets through. we think this is marking the

start of a sustainable advance again. we say that because you look at the 200 day moving average on the index. it's rising. indicative of a bullish trend. there's some catch up potential here. consider the s&p 500 is well above its levels from the summer of 2014. so, we think the play is to buy pullbacks, buy it now, higher lows followed by higher highs. this is all within that global breadth is growing. >> go canada. thank you very much. good look there at the market they like. for more trading nation go to our website. "power lunch" is back in two minutes.

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as the s&p bank up more than 1%. on the eve of yell enen's testimony. >> tesla is the best stock. thanks for watching "power lunch". >> closing bell starts now. hi, everybody welcome to the closing bell. i'm kelly evans. >> i'm scott wapner. another record breaker for stocks. apple on track for a record close as well. the dow on pace for its fifth record close just since the inauguration. it's 20 seconds since the election. we'll look at whether it's time to get cautious or not. >> the question everybody keeps asking as the rally keeps going. the latest shot in the wireless wars. verizon is bringing back ice unlimited plan.