gained 48. it will be more than a ton when it's fully grown. zoo officials will give it a name next week. it's no polar bear but it's cute. >> the polar bear is pretty darn cute. >> both nice. >> thanks for watching "power lunch." >> "closing bell" right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> it is friday, isn't it? >> it is about 70 degrees outside in manhattan. it feels like a friday in june. >> february 24th, we could get used to that. i'm bill griffeth at the new york stock exchange. >> the dow is snapping the ten day win streak. biggest since 1987 when it's been climbing to the records. it's down 56 points right now. we'll keep an eye on the push

and talk about how long today's topout could last. >> another busy day for president trump. he signed a new executive order to rein in government regulations. we'll go live to the white house for details on that, among other things that have been happening there today. >> and it's that time of the year again. we'll take you inside the factory that makes the coveted oscar statues coming up on the "closing bell." >> looking forward to that. the oscars are on sunday. >> i didn't realize it. i don't know why they're not named oscars until i was reading something over the weekend. the theory is it was named after somebody's uncle. >> bette davis claims it was named for her uncle. >> you knew that? >> that's sort of legend at this point. it's not really clear. let's start with president trump's latest executive order and an interesting development at the white house press briefing. not too long ago. eamon javers here to wrap it up for us at the white house. eamon? >> reporter: hi, bill. a bit of a dust up between the

press core and the trump white house. altering the terms of the deal here a little bit between the press and the white house deciding to hold today's press briefing off camera as a gaggle, which is held behind the scenes in sean spicer's office. and deciding to invite certain reporters. i was in the room. everyone in the press briefing room stood up and tried to go into that sean spicer gaggle and they were denying anybody who hadn't been previously invited. that prompted the white house correspondent's association to put out a statement. the white house correspondent's association board is protesting strongly against how today's gaggle is being handled by the white house. we encourage the organizations that were allowed in to share the material with others in the press corps who were not. the board will be discussing this further with the white house staff. now in terms of actual news today here at the white house,

we also had the president, as you mentioned, signing that executive order. here's what they say at the white house that this executive order is going to do. this is going to create regulatory reform task forces for each agency. the task forces are going to be focused on eliminating costly and unnecessary regulations. each agency will be required to measure and report back its progress on sort of taking a weed whacker to a thicket of regulations back to the white house. that's what's been going on here at the white house this afternoon. the afternoon is not over yet, bill. >> eamon, the stakes couldn't be higher for next week's quasi state of the union. do you get the feeling around there that they sense a loss of momentum on some of these policy initiatives. >> reporter: they would never put that way. i don't think so. there have been critics off of this campus who have suggested the white house is late in bringing out its tax reform and late in bringing out an obamacare repeal. typically these addresses are a

laundry list of very specific policy details, but that's not necessarily this president's style. so what we might see on tuesday is something very, very different. i'd be on the lookout over the weekend here for any leaks in terms of policy specifics that might happen. that's traditional the weekend before a state of the union or in this case an address to a joint session. we'll see whether this white house has that or whether the president opts to go with a policy heavy speech or broader big picture speeches he delivered on the campaign trail. >> that's true. i was hoping for the weekend off but we'll be listening to it. >> no such luck as always. >> eamon javers at the white house. is today's market stallout a sign that this trump rally has gotten too far ahead of the actual policy making. >> closing bell exchange, larry glazer from may flower advisers, andy capron is at post 9 and rick santelli checks in from the cme in chicago. larry, what do you think? ten days in a row for the dow in record territory and today we rest. what do you make of that, if

anything at all? >> wow. what a run. look, even though this market is suffering from excessive optimism and over confidence, there are still opportunities for investors. they're going to get a whole lot more selective than they were since the election. we've seen massive inflows which is the opposite of being selective. investors instead of jumping on the trump train, jumping on the financials and infrastructure at the elevated levels. perhaps we should take the trump train and drop it on its head. look at things like the mexico etf, the u.k. etf. internationals glad about this market. it's coming back and opportunities but not where people are positioned right now. >> are you saying that's because those lagging areas are going to catch up or is that because there's going to be a reversal of some sort? >> well, kelly, whether you're a believer or nonbeliever in this rally, fundamentals do matter and valuations do matter.

valuations overseas are much cheaper. currency plays an enormous role. you can have a policy delay en route to the world of wonder could cause a slowdown. i think when we look at the opportunities overseas, we see more importantly a better risk/reward. better elections coming up. they could create a pause in the global rally which may give us a great entry point. take advantage of those entry points for better valuation. most importantly, kelly, risk management is still the key here. >> andy, actually, you follow the same theme here. you think some of the emerging markets left behind in this trump rally may be worth a look right now, yes? >> i agree with that 100%. what's happened since the election is investors are given the benefit of the doubt to a number of companies, usually in the u.s., not just large caps but also small caps. there's been a parade of self-styled experts saying this is going to be great for the u.s., going to be great for the companies to do more business here but the proof has not been in the pudding. look at u.s. company results

especially for smaller companies so far this year. they're not posting any meaningful profit gain. meanwhile, nobody is giving any love to emerging markets but they've delivered a 4% pop in just one quarter of earnings growth. that is the fundamental that matters. ultimately you're buying earnings and you're buying earnings growth and you're getting it abroad and not in the u.s. >> i was going to say, andy, their performance has been quite good. it's not as if they're overlooked. you have a couple of big cap u.s. names that you brought apple, citigroup, rile dutch, shell. why these? >> those are companies that are getting love from investors. they're able to deliver. look at citigroup, for example. citigroup had a massive pop after the election. dodd-frank might go away, interest rates are going up. even before any of those things happened last quarter they were able to post a decent gain in sales and earnings and they had a lot to do with trading activity and running the business well. very little on speculation. similar things with apple. they're maintaining momentum in

their sales. new iphone is successful. they haven't lost a meaningful amount of market share there. that matters. >> rick, a five-week low on the ten-year yield. what's going on there? >> shots. hot shots and i'm not talking about the kind of drink in college bars. i'm talking about the two year security in europe. you know, larry had it right right at the end of his comments. he said, you really have to watch the elections going on in europe this year. might give pause to equities, yeah, maybe including ours. maybe that's really what's going on. hopefully we're all looking at a one year chart of that shot. it's almost 100 basis points with a minus sign in front of it. it's down 15 basis points this week alone and pretty much most of the curve up to five year in europe making historic runs at negative all-time low yields. this is a huge story. many think if frexit occurs that ecb and the union are bye-bye. so maybe the issue is some

investors are thinking about some questions outside of trump like, hey, who backs the ecb? what happens all those hundreds of billions of euros, all these banks that are virtually insolvent in countries like italy and some of the banks in portugal and spain. what happens to all of this? i think this is a huge story and i think it's a big shot but i don't know that many are talking about it. i think this is something that is affecting markets proof. if we have bad data rates would go down, stocks would look at rates. rates are going down, something must be up. i think that's happening a bit on the global scale. maybe causing these equities to pause. go on. >> rick makes a really good point. there are opportunities in fixed income in all of this volatility. one thing we haven't seen is any volatility. you have a vix that looks like a dead person's pulse. >> exactly. >> no volatility, no fear. complacency. >> wouldn't you expect -- who is that talking? i don't know who that is

talking. >> glazer. >> if all of this is because every syllable out of the new administration's put under a scrub brush, then a microscope, then anatomic microscope there is a little more volatility, a little more vix. i agree, doesn't add zblup and when i woke up at 4:00 this morning staring at the ceiling it was the lack of volatility that kept me awake, other than my kids. >> and a shots close to minus 100 when an ecb that makes wrong way funds look correct, that's what's going on here. >> rick -- >> go ahead. >> andy, what's keeping you up right now? what wakes you up at 4:00 in the morning when it comes to investing here? >> you know, it is things like vix and the level of interest rates. nobody is worried. nobody is worried enough. the vix today is very close to levels that we saw in 2007. that means it's cheap to buy protection but protection against what? nobody is quite sure what might cause the market to fall. i think valuations are not that

rich on the one hand. on the other hand, it's only a matter of time before we have a 10% correction on the market. >> the scenario you're talking about, the first thing we're doing in france is electing a new leader. so at what point even if that outcome does occur in a couple of years down the road won't people have to flee somewhat into u.s. equities? is the scenario one that you're laying out one we have to take into account the risk of all of this and we haven't? like anything else, like brexit, like trump will it all fund amount aly turn out well. >> as one of my friends says when issues crop up, margin call. lots of things going on around the world and lots of products, including the fixed income, and i think when it gets shaken up and there are so many highly leveraged, fully packed positions, they metastasize in ways that may not be logical like people pulling money out of equities. >> that's for sure.

we have seen that. >> thanks, guys. have a good weekend. >> thank you so much. >> see you later. 50 minutes to go in the session. the dow is down 57 points today. s&p down 5, nasdaq down 9, russell down 4. when we come back why jcpenney shares are in the red. plus retail stocks you may want to consider buying on these dips or avoiding altogether. and later wall street bargains. we'll have a special report that have been left out of the trump rally both since the election and also since the president took office. you're watching cnbc first in business worldwide. with this level of engineering... it's a performance machine. with this degree of intelligence... ...it's a supercomputer. with this grade of protection... ...it's a fortress. and with this standard of luxury... ...it's an oasis. the 2017 e-class.

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down 5% to a 52 week low to sales weekend. >> courtney reagan spoke with retailer ceo earlier and she joins us with the story. courtney? >> well, it's no secret department stores are struggling. many have been closing stores for some time, but jcpenney hasn't followed suit until now. in the wake of a quarter with disappointing sales but positive net income for the first time since 2010, jcpenney will close

up to 140 stores or 14% of its fleet. the stores are minimally cash flow positive and represent 5% of total sales. ceo marvin ellison told me on the phone timing was based on several factors explaining, quote, we had a very under developed omni channel strategy when i arrived. it was hard for me to understand how many stores we needed until we began to roll out, buy online, pick up in store. it would have been reckless to close stores without that in place first. 75% of jcpenney's online orders touched a store in some way last year with buy online pick up in store making up 40% of all online sales. so losing stores will likely result in some ecommerce loss. ellison tells me though it's factored into the guidance. he also purposefully lined up the timing of the closures with a company wide voluntary early retirement plan which he anticipates will result in jcpenney hiring more for the positions vacated by the

retirees. the department store's full year outlook is short of its previously announced three-year plan with expectations for flat comp sales. jeffrey's analyst randall koenick continues but at what feels like a more gradual pace. >> courtney, thank you very much. while jcpenney works on this turn around, which retail stocks are poised to win and maybe which should you avoid? which could be the losers here? >> joining us are simeon siegel and eric beagle from wonderlick joining us at post nine. stay with versus stay away from? >> i think that retail trading used to be tied to the fashion, used to be tied to the season. right now every conversation we're going to have is who's closing how many stores? >> it's a good thing for other people. so what happens here is even to courtney's point, you close the stores, you improve the

profitability maybe but a smaller base. the businesses are getting smaller. every business is -- >> a smaller business could be a more attractive one what's interesting is when you go back and say abercrombie & fitch has an interesting case study. you close the stores and the margin across the board goes up, it hasn't happened. the way we think about it is right now in retail the big keep getting bigger. the winners keep winning so to speak and that right now, right, the last theme the department stores are closing, who are they donating to? >> real quickly. t.j.x. raw stores. >> and all cast. >> eric, you're going for the younger consumer. >> when we look at it, you need to look right now in terms of expectations versus reality. the street has a negative connotation on this entire group. when we look at that, that means you need to look at names where the expectations are so low that even if they do a mediocre result it's better than what the

street expected. that's names like american eagle which is the only teen retailer worth buying. they're going to take share from abercrombie. and they're starting to turn it. the people on the street aren't paying attention. >> who would you avoid? we would continue to avoid every teen player except american eagle. they are completely lost. they're trying to figure out what's their reason for being. they don't have a reason for being. american eagle refocused on denim,e emphasized on brands. people are so far behind they'll fall by the way side. >> as it relates to this space, it's interesting how you think about how they used to trade. very moment in time. each season you cared. we had monthly comps. last week gap said they're no longer one of the last holdouts of monthly sales. so this longer term horizon which didn't really exist as much is relevant. >> speaking of moment in time,

we had a moment in time when gary cohn said at the white house that the language out of the house on the border adjustment tax was a non-starter for the white house and retail stocks took off. the xrt up sharply at that point. the retailers are living and dying by word on the border tax right now, aren't they? >> i don't know if i was allowed to say it, but i saw one outlet say something about so? as opposed to no and that so sent the stocks going one direction, right? sorry, about whether the border tax was going to happen. so there was no border tax. instead it said so border tax, whether it was being negative -- >> it's interesting you brought this up because the white house is denying these remarks from gary cohn. bill's point still stands which is whatever happens with this key piece of legislation -- >> matters. >> -- seems to be the most overriding thing right now. >> even whatever happens, it's the news. the space is trading on a dime. what i would say the way we think about it is investors have been staying away from the

sector so now does this -- you have to cover your shorts, right? if all of a sudden you're worried about a structurally unprofitable business in light of border tax, does that change? i don't know if that changes if border tax goes away, but that short changes. >> yeah. when you look at it, what's going on here is that you have a tax heaven, a tax hell. tax heaven you have lower corporate taxes. they are very high taxpayers. you have a lot of capx and to repay the try eight cash will be fantastic. the hell, you have a border adjustment. you can't make money. this group doesn't have the ability to suddenly spin on a dime and start producing in the u.s. >> when they're scrambling for market share and a lack of profitability, right? i mean, when they're beating each other up you lose that much more profitability because of the tax, then you're going to see this respond. >> perhaps the only positive is if there's pain, it's going to be pain for all of them. >> i don't think they view it that way. >> equal opportunity hell as it

were in that regard. >> thank you guys. >> good to see you. >> appreciate your thoughts today. heading to the close. got about 40 minutes left in the trading session here. ten in a row. ten records in a row for the dow and it looks like it comes to an end today unless we get some real buying in the last half hour. >> it would have to be real buying. the white house possibly sending mixed signals over this border adjustment tax. we'll have the latest and see how things play out up next. >> also, why shares of restoration hardware parent rh are going through the roof. that's coming up. we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $6.95 per trade? uhhh- and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee.

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welcome back. markets lower overall. we have some movers moving higher. restorations hardware parent soaring. the high end home furnishings retailer issuing revenue guidance for the fourth quarter. >> software maker reported a slight beat on quarterly earnings late yesterday but revenue fell short in the street estimates and the company committed its full year forecast. ceo meg whitman discussed challenges. >> there were a couple of head winds. one, the market is a little bit soft but secondarily, foreign exchange and commodity prices and commodity availability in the form of memory. >> she also spoke about the

proposed border adjustment tax. >> my view is this actually does not create jobs, it actually lowers the number of jobs for many, many companies. the entire supply chain, everything from memory, from mother boards, i mean, everything that is in our products comes from overseas and by the way, that supply chain has taken 30 years to set up. so when all those components come in and are taxed, it's not going to be good for companies that have a relatively low margin and a big off shore supply chain. hewlett-packard enterprises is down more than 1% since the election. down 7% in today's trade. time now for cnbc news update. let's get over to contessa brewer. >> right now clashes broke out between israeli forces and palestinian protesters in the west bank. israeli forces fired tear gas

and stun grenades to palestine yals who were reportedly throwing rocks at them. no injuries reported on either side. anti-immigrant forces in pretoria, south africa, are clashing with police. it was sparked by a petition that they handed to the foreign ministry suggesting that the government teach foreigners how to speak properly. the international space station received its second cargo shipment in less than 24 hours. a russian cargo spacecraft docked at the i.s.s. earlier today and yesterday a spacex capsule docked with the space station. tom brady in a skiing accident. he recently made a trip to yellowstone club in montana and he took a real tumble. confirmed to another football star, david beckham, that it was him on the skis. he said, you know, i landed on my left shoulder. it's not really that important to me. you've got to wonder what bill belichick is thinking of that. better his left shoulder than his face, kelly, you know what

i'm saying, tom brady? >> we were never allowed to go skiing growing up lest it screw up our award winning lacrosse seasons all the time. >> all you athletes. >> yeah, no. >> have to be careful. >> it's dangerous. >> she's not allowed to ski while we do this show, too, by the way. thank you, contessa. see you later. i can ski all i want though. we have 33 minutes to go in the session. dow is down 38 points now. moving a little bit off the lows. s&p down 3, nasdaq off 5 and russell down 3. up next, the looming battle between the trump administration and house republicans over that hot button issue with overseas suppliers, namely the border adjustment tax after this. oh...not the smooch method! come on... what's going on here? you know how ge technology allows us to fix problems before they... they slow production, yeah. well, no more catchy business acronyms. wait, we don't need to smooch? i'm sure we can smooch a solution! we just need to

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taking a pause today. all the major averages with advancers and decliners on the dow. you're looking at there. walmart still higher. leading its way to the up side. goldman is the weakest performer on the dow. downgrading the stock to sell from hold. the signal is being set by insider selling by some goldman

exe execs. it's all the way up at nearly 250 right now. bill? >> all right. here we go. 30 minutes left in the trading session with the dow down 30 points right now. joining me on the floor of the new york stock exchange is alan valdez from silver bear capital. we had ten consecutive records for the dow and today we rest, i guess? >> taking a little breather. >> not time to panic. >> no, not at all. it's the end of earnings season. this rally has been a trump and earnings season rally. earnings have been better than we expected. coming to an end, it's a friday. you want to take some profit off the table. >> through it all, when you go back to -- after election day, this has been a very resilient market. >> incredible. just since january 1st we were up 780 points or something like that. since election, over 2000. yeah, it's been amazing. >> plenty of people have -- are respected on wall street are getting a little nervous about this market right now. i think of mr. cashin, i think of jack mogul and others who

think maybe we shouldn't be getting ahead of ours selves here. >> we are ahead of ourselves, that's for sure, by 12 months. you could see some consolidation and sideways trading going on. once we get clarification on the tax plan and infrastructure, then maybe you'll see some selling. you selling on the news. right now i think we'll trade sideways in anticipation we'll get a good tax cut. >> kelly? >> thank you both. president trump has indicated he supports some form of a border tax but today there were reports his staff was sending signals. that may no longer be the case and then there were reports nothing may change. let's get to ylan mui. >> there was news from the white house the administration denying a report in axios that gary cohn said that the administration does not support a border adjustment tax. we also heard president trump yesterday praising the plan as

creating jobs and treasury secretary steve mnuchin spoke about it. he said there's no panic from house speaker paul ryan's office yet. steve bannon and steven miller support this idea cord to go this aide. it's looking like a decision on border adjustment comes down to the president. one of the key unanswered questions in all of this is if border adjustment dies, what rises in its place. here are some possibilities. exemptions. is there a way to carve out certain industries from the import tax. pennsylvania congressman has brought this up. he's on the committee responsible for writing the tax plan and he's worried about the impact of border adjustment on oil refiners. he goes back to lower the corporate rate to 25% but it raised money by taxing banks with assets over $500 billion. the warning for the business

community, be careful what you kill because you might not like what you get instead. >> all right. ylan, stay there. let's talk about this. for more let's bring in politico's chief correspondent ben white who i think broke the story about gary cohn, right? >> no, kevin has set being the cea chair. i'm not going to take undue credit. >> i was mixing my stories. i was watching the give and take between you and ylan. that's what that was about. it's clear that this is still a work in progress, ben. >> yes. >> even gary cohn admitted that even though the language out of the house right now is a non-starter, it could still be revised to please the white house, right? >> it could be, but, i mean, it's not going to come as a shock to a lot of people on wall street that gary cohn doesn't like the border adjustment tax. he doesn't. it's just a fact. the question is whether that view wins out in the white house as your preview piece set up. there are people in the white

house who do support it. so could it be tweaked in a way that the white house eventually agrees to? possibly. but then you run into another problem which is the united states senate and republicans in the senate pretty much hate the border adjustment tax. how do you get it through there? this gets to the question of are we way ahead of ourselves on tax reform? i think we are. there are a lot of hurdles between now and getting that rate cut. >> what could revive it, ylan? what are the options at this point? >> it really comes down to the president. what congress needs to see is leadership. in fact, the aide that i spoke to said we need the president to back our plan and that is what will help resolve these differences between the house and the between the senate. senate republicans say they have a lot of questions about the plan. could those questions be answered if there's strong leadership coming from the white house? possibly. but, again, you have to have that consensus within the administration on the path forward and i think what you saw today was that that consensus is still missing.

>> and, you know, a lot of reports out there, ben. as paul ryan and donald trump get to know each other a little better, they're sort of looking to each other for some leadership here. >> yeah. >> typically the president has to lead the charge on this even though this has to come out of congress. who has to make the first step do you think to get this thing going? >> trump does. the white house does. we all know exactly where paul ryan stands on this. he and dave camp. this proposal that they have creates a trillion dollars in revenue through the border adjustment tax. that's how they pay for it. that's how they get it through the house where fiscal conservatives don't want to blow up the deficit. they need and want president trump to come out in favor of this. he may very well do that. he wants some sort of a border tax. i'm not sure he wants this one. if it's not this one, what is it. does it create the revenue that the white house comes out with? it should be within the next week or two.

a document on our principles. no one can go from there. as ylan suggested, you don't know what they're going to say and whether it's going to be enough to unify the house and senate republicans. >> piecemeal corporate tax. waiting to do the big overhaul until there's a better way of paying for it. could they do something more tactical at this point to avoid it? >> it's becoming politically difficult. do you want to be passing a tax cut for corporate america and not doing anything for the average, you know, joe or jean on the street? i think that's really hard to do. the other thing you have to remember politically is that there is sort of a deadline which is 2018 mid term elections. does any lawmaker want to be taking a controversial vote right before they're up for elections? the farther that this time line gets pushed back the more difficult it becomes to actually

get tax reform done. i don't think you're going to see any major movement in 2018. >> right. i would just add to that quickly, on the house side the ryan perspective is simply we're not going to do a marginal rate cut and call it a day and have it add trillions to the deficit. it's just a nonstarter. freedom caucus won't back it. he can't do it. so i think a lot of supply siders would like to say let's just go from 35 to 25 or 20 and call it a day. at this point that's dead in the house. it's not going to happen. >> like i said, they're still getting acquainted. figure it out, i guess, at some point. >> ylan, ben, thanks. >> thank you. now to cpac where house ways and means committee chair kevin brady spoke. kayla tausche is on the scene. hi, kayla. >> reporter: hey, kelly. if there was any lack of consensus or support for that border adjustment tax, chairman brady was not letting on. he was defiant. he was adamant about the house blueprint that he has been talking up for weeks. he spent ten minutes outlining the contours of the plan which

our audience already knows very well. then in a sitdown interview on stage he was asked a little bit more about the plan. for instance, why is a border adjustment tax not going to be interpreted like a tariff? he said, no, tariffs are trade policy. this is tax policy pure and simple. we are trying to end what he was calling a made in america tax. he says, if you repeal that, then the deck will no longer be stacked against small businesses and here's what he said would happen to the rest of the economy. >> by meeting our competitors straight on, by taxing all products equally in america we know not only does it grow jobs in america, not only does it stop businesses from moving over seas, it restores america as the best place on the planet to create that new job. >> reporter: chairman brady did imply though, kelly, if they were to have a border adjustment tax it would likely be phased in. so it wouldn't happen all at

once and he did say when asked about why not pursue just a simple corporate tax rate cut like you guys were just discussing? he said globally it's not enough to stay competitive when there are so many other parts of the tax plan that are already, in his words, stacked against corporate america in the job creation business. now he didn't really say whether he had spoken to the president, whether he had any support from the white house about this specific part of the proposal though he did say that he took yesterday's meeting with all of the manufacturing ceos at the white house and some of the readouts that we got after that to be a good sign for any sort of tax reform. kelly? >> kayla, so, you know, at this point given what everybody's been talking about, maybe that idea of a piece meal corporate tax thing is not moving forward. you know, what options does that leave? because as he reiterated just now, congressman brady, just like you told us last week, he doesn't have a plan b. >> no, he doesn't have a plan b. he didn't even want to go there. he didn't even want to entertain

the idea that this border adjustment tax did not make is it through because there are so few options that would give you any revenue on the same scale that something like that would. there are smaller options on the table. that is something that's trying to drum up business. >> thank you very much. 18 minutes left in the session here. >> it's at stake. the winning streak has kept the dow in record territory. >> can we do it in the next 18

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joins us right now, he's been tracking the companies and crunching the numbers. eric? >> thanks, guys. obviously there's no doubt stocks are in rally mode. the rally has had two phases. you can think of it as phase one between election night and inauguration. phase two between the inauguration and now. most stocks up in both periods. almost all the rest were up in one of the phases but a few stocks have stood out. they've dropped both after the election and then again after the inauguration. take a look at some of these big household names not getting the benefit of the rising tide.

general mills, michael koors, mattel, expedia, l brands, under armour, gap, haynes brand. so you see all of these companies just walking around any store any mall and, again, it's not just this list. there are a full 28 companies in the s&p 500, they have been losers since the election and, again, since inauguration. 33 earlier bill, we reran the numbers from last week. >> is that a record for the s&p. >> it's 28 now. >> you know what's interesting, eric, i guess the question is do these companies finally start to participate? or do they get triple left behind? is this a one last place to look for an opportunity as we continue to run the records or is the point, you know, forget it? these are just dead money. >> that's the question. you almost want to ask that to warren buffet on monday. are these value trades because they haven't gotten the balance of the rally? or is the market saying forget them, we've moved on.

we don't need them as part of the rally. that is the big question going forward. >> and a little birdie -- a very tall birdie told me this is your birthday today, eric. >> i don't know about that. >> happy birthday, buddy. >> i don't know. >> happy birthday. >> we've confirmed with two sources familiar with the matter. >> yes, indeed. happy birthday. 12 minutes to go. dow, look at this -- >> look at this. >> down 7. >> i think we're going to do it. >> you wonder what the bynum is on the bell. the s&p has turned positive. the nasdaq has turned positive. the russell is down only a point. a very different picture than we started the hour with. >> up next, the market win streak is in jeopardy. looking positive. two market pros to give us a take on the day and the week when we come back.

nine minutes to go. dow is down for the first time in 11 sessions. >> let's sit here and wait to see if we turn positive. kevin carone is with us, so is chris cosentinos. here we sit with baited breath waiting for the dow to turn positive. kevin, will it matter?

clearly you want to see another record close on the dow. doesn't matter a whole lot, does it? >> no, it doesn't. the context is important. you've had a series of record closes and you've got a market that's now worth $26.5 trillion sitting on top of an $18 trillion economy. you're not looking at a cheap stock market here. you need to be a little bit cautious about valuation anyway. that's why we've lowered our return in the equity market. the data is good. momentum is good. >> the markets between the u.s. data, look at germany. breakup being bandied when. >> you mentioned the word

dichotomy. the economic data is coming in quite good. the political headlines are ugly. we're at seven or eight year highs on the pmi zone. >> the the consumer is a i place that has worked through thick and thin. you were talking about a lot of consumer names and import tax. that would be a negative.

if you look at the consumer it's contributed. i think as we get deeper into the accounting they want to focus on consistency and the consumer is where it is at. >> kevin and chris, thank you for your thoughts on the market. appreciate it. >> thank you. >> maybe i jinxed it. >> oh, no. >> we have 6 minutes to go and the dow is down ten points. we'll have the closing count down coming up. >> the s&p is still up by 1 point and the transports on the dow, 77 today. >> standout. >> then after the bell, obamacare could cause an outrage -- cause of outrage and not for a reason the gop controlled congress had planned on. we'll tell you why the battle cry may now be repeal and rework. you're watching cnbc, first in business worldwide.

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we've had a pretty good gain. 1.1% now at 20,079. doesn't look like we're going to do it. ten year low, dragged lower by some of the yields in europe right now. we're at 2.31% on the ten year note. wti, that also a gain of about 1% for the week. the price now at $54.03 a barrel. the standout today, i'm going to bring in dom chu. the standout on the retailers, a lot of volatility. that becomes what gary cohn said out of the white house about the border adjustment tax language out of the house was a non-starter. and this is the xrt. the s&p retail index. you can see when that word got out the index took off again. it's kind of moved sideways.

>> it's interesting. if you look at the training, we're five, six points away from being positive on the dow and what's leading the way there are the names that you wouldn't expect to on a nice rally for risk. telecom, utilities, staples are the ones that are in the green. noticeably you mentioned oil companies. >> yes. >> energy stocks are down pretty big. over a percent. >> and the financials, too. >> correct. in goldman sachs, material stocks. the ones that indicate a more economically sensitive environment are not the ones doing the heavy lifting. rather, you have the names that are perhaps the ones that people look to for dividend income. that's the reason why there's a little bit of skepticism. all it will take are a few trades to get six points, six measly points on the dow. >> we didn't get to tell you about the market on close orders. it was $1.5 million to the buy side. wasn't quite enough to put us over the top. >> listen -- >> 30 seconds left. >> 30 seconds. it's green. it's green. there you go. >> 1 point to the green side

right now. >> looks like we may have -- >> things are. >> our 11th consecutive. looks like we're going to do it. 11th consecutive close for the dow jones industrial average. >> we've got to wait a couple more minutes until things settle out. looks like we're there. >> thanks, dom. have an eventful weekend. >> very good. that will do it for us the first hour. the second hour of the closing bell with kelly evans and company. you've got a record, kel. okay. this is getting ridiculous. welcome to the "closing bell", everybody. i'm kelly evans right on the belle the dow jones industrial average turning positive for the first time all session. we climbed off the lows beginning in the last hour. we had big orders to buy on the bell and i think to quote john, people used to fear going into the weekend long, now they fear going into the weekend short. an 8 point gain puts us at 20,818 for the blue chips.

in fact, the dow, the s&p and nasdaq were all higher. i believe the dow only went into record territory. s&p in record points 2367. s&p up nearly 2/10 of a percent. the russell couldn't quite get there down less than -- just 0.13 points. 1394. the transports on the dow were up 85 points today. there were some significant strength there. again, right on the bell after being in the red all day the dow just managed to close at positive. that's a new record. that's the 11th straight record in a row that takes us back to 1987 when the markets opened and spent the first 13 trading sessions of the year setting record highs. of course, that october was a different story. in any case we'll have more on the markets in just a moment. meanwhile, obamacare has been the hottest topic at town halls across the country. while they're repealing and replacing the affordable care

act, they haven't replaced the plan. we'll talk to former estate commissioner about the future of health care. joining me on the panel, cnbc commentator michael santoli, cnbc contributor evan new mark and jim khan is with us with wealth enhancement group as well. i'm shaking my head. you know, again, at some point you start to worry that it's just all -- it's all too good. >> yeah. >> as i mentioned yesterday, brian reynolds said look at the spreads of credit derivatives. they are collapsing. that's a very positive sign for stocks. i guess people worry they have to participate. >> if you go down the checklist of things that would get you concerned about a bigger problem in the market, the credit markets would be on that list. it's not giving you a sign to say that you should be able to -- you should be reducing a lot of risk here. now i'm going to quote you and say ridiculous in terms of the attention on these tiny minuscule incremental gains the dow has been putting in. the dow is up less than 1% this

week. that overstates how much action there's been. it's only notable for the fact that there's no selling pressure and the methodical grind has continued. the leading groups have struggled. you have the stuff everyone wanted to own, the banks and the industrials. they have not done that much of a job. the infrastructure linked stocks have taken it on the chin. does that matter? only if it does down the road. >> what are you making of it all? if i had to guess what you were thinking, i'd think, you know, you don't want to be here. you're more of a value. you don't want to be in the market when it's like that. >> right now i would not be buying anything right now. i mean, i'll give you two figures or numbers to think about. the first is four months. the trump administration has basically been in power or prepared for four months so far we have really nothing concrete on obamacare, nothing concrete on corporate tax reform, nothing concrete on renegotiating trade, nothing concrete on a stimulus

plan and a stock market doesn't care, does not care at all. that's the second number i give you. 3%. it is hard to justify these equity markets unless you believe that within a year you have 3% gdp economic growth or a ten year and 3%. right now the bond market is saying it doesn't believe what the equity market is saying. >> jim, if the bond market is reflecting what's happening globally, that is look at germany, the yields are pulled lower there. not maybe a great political outcome but then our stock market doesn't seem to care. even their economy, their stock markets it's a different story. how long can this recess? >> i think that's the big story people aren't paying much attention to. the ten year treasury went from 2.5 to 2.3 in a few days. bond market investors don't believe the stimulus is coming down the pike. stock market investors do. someone is wrong. the question is who. the answer is we don't really know because what trump has been saying and the administration

has been saying is they're going to do what they said in the campaign. >> yeah. >> they're going to get it through. they have a republican house, they have a republican senate. it's very likely they'll get some form of tax reform. the question is what does it look like. to disagree with my friend on the panel, they've only been in office for the month. comprehensive tax reform. >> i totally reject that as a comment. the reality is this was -- they have a republican house, a republican senate and a republican president. they've known that for four months and so far what we know is he's very good on transgender policies, on muslim bans or whatever that immigration, but weird stuff. i mean, if -- >> orders. he can't get tax reform by executive order. >> if you want to be -- i believe they are a pro business administration then focus on the economy because he will rise and fall on the basis of -- >> we give him eight more weeks, okay?

then we'll see if he actually focuses on the economy. >> these apparent contradictions go away if you don't think this rally is about policy, which it is not. there is nothing inconsistent with this market being up ten% and up 5.5% year to date where, are coming off of trump. that's all you need to know. >> disagree. >> what bull market before you got to 18 times earnings. which one? >> unless you believe there are tax cuts coming because we don't see the revenue growth. >> what's the multiple now? >> about 18 and so those estimates for the 2017 are probably going to erode some. >> that's like a 1 point be point 5 standard deviation move away from 20 year valuations. it's not sustainable with the tax cuts. >> that's why we started to see, we thought, a little bit of a churning earlier this week. the momentum is slowing. >> sure. >> it's not going to happen. do you think that the earnings reality is divorced from the politics of all of this? >> i don't think it's divorced.

i think the promise is keeping them involved and focused on the fact that earnings can be higher or supported. i think that's all it is. >> it's extraordinary to see a bull market go on this long. >> unless you think it was a fair market a couple of years ago. >> correct. if you just measure that, arguably you see the -- >> i think a lot of this is -- i think people are shifting money to equities. i don't think there's a lot of connect the dots on the policy. to what mike is saying, there's not a lot of -- a lot of this is sentiment at this stage. these are not huge volume moves. these are not days you're up 4 or 500 points. >> this means the market is safer. if that happens you could go up more. >> how much further are the financials going right now? how much further?

go for another 20%? >> back to 2006. >> i don't think so. >> look at small cap stocks. they benefit the most when you have a result of the capital gains stocks. there is nothing that justifies the moves we've seen in small caps stocks except for a potential reduction. >> nobody is talking about that. >> that's part of the repeal obamacare. >> yeah, that's the investment income. >> i'm going to say i think there will be a catchup in legislative reality. >> why does ma sner when people remember the big errors and there were big markets, during those eras there was strong action. they got things done. maybe gary cohn will be the next

jim baker, i don't know. mike santoli is going to tell you none of this matters. within six months you will know. >> if you look back at prior periods during this market phase we were fixated on things like the chinese currency, on the price of crude oil, on european debt spreads. we were focused on these individual things that seemed to matter above everything else for a short period of time. that's where we are with the tax reform. the headline risk is there. i don't think it's the explanation. >> it gets to this 3%. i saw steve mnuchin walking back 3. now it's 3% the end of 2018. in trump's debates, we should have gone from 4 1/2%. >> you can't get the corporate profits without gdp growth and you can't get gdp growth without immigration. if you look at gdp our productivity numbers are looking okay. you need more people. the problem is we don't have enough people to be going into the work force. you're not going to hit the

number. >> i think we saw him writing in the journal about the fertility rate is down to 0.4%. >> the one thing that trump has going for him and the trump economy, the u.s. economy has going for them is that europe is going to continue to be an absolute mess. >> no, it has not been an absolute mess. >> here's where the opportunity is. >> why does that matter? >> you're not going to see any economic growth. >> why does that matter? >> u.s. markets will be attractive. and the second thing is the democratic party will continue to be a mess. so i think a lot of -- trump has a lot of leeway and the economy has a lot of leeway because i think people don't want to be stuck in a europe where the wheels have never really been put-back in. >> europe is an ointment with a lot of flies, i'll give you that. it's a good ointment. they know their luxury goods. they're seeing growth. all of this nonsense about brexit isn't going to happen. they're not breaking up. we're startings to see earnings

growth. europe is trading at one times sales, our u.s. is trading two times sales. >> german two year debt trading at record low levels. we have the ten year trading at 0.2% in germany. if the e.u. is not breaking up, if the economy is strong, then what justifies those? >> there's the fly in the ointment. the rest of europe is catching up to where germany is. there's concern that the german government will put pressure to pull back the stimulus that's allowing companies like italy, france, spain, portugal to start to grow. >> yields are low because they think ghaerm any will pressure them to ruin growth across the eurozone? >> if german inflation picks up we think the ecb might put brakes on. ultimately the germans know -- >> hang on. let's turn our attention back to washington. >> it hasn't grown for ten

years. >> they deserve it. >> big zero. >> but they make great food. it was a busy day for president trump. he spoke at the conservative political action conference and signed another executive order. let's get to eamon javers with a rundown. >> reporter: hi, kelly. it has been a busy day at the white house. we saw the president of peru, his limousine coasted behind me a few minutes ago. the president was at cpac, conservative political action committee conference earlier today. he gave sort of a campaign style rally there. a lot of the same themes that the president had hit on the campaign trail. he hit it at his political base. talking about his complaints about the media but also talking about regulations and saying he wanted to cut back on regulations. he wants some significant regulations to stay in place. he thinks they're far too costly. it does a couple of things according to the white house.

they say it creates the regulatory reform task forces inside each federal agency. they're going to be focusing on ee limb natding costly and unnecessary regulations and they're going to direct all the agencies to measure and report progress back to the white house. here's how the president described his attitude towards regulation earlier. >> every regulation should have to pass a simple test. does it make life better or safer for american workers or consumers? if the answer is no, we will be getting rid of it and getting rid of it quickly. we will stop pun flishing companies for doing business in the united states. it's going to be absolutely just the opposite. they're going to be incentivized for doing business in the united states. >> reporter: kelly, you saw that group of ceos standing behind the president. he had 24 ceos at the white house yesterday. a large group of chief executives standing with him to sign that executive order. this has been a revolving door

at the white house as far as executives. >> what is the one thing you're going to be listening for, if anything, on his quasi -- this address coming next week? >> i do agree with my friend that he has to change the tone. people don't care about the social issues. he has to get back to the issue of how so he going to continue that. it's not going to stop by keeping workers out of this country unless he goes back to the libertarian free market message that he sold us during the election because that's what's going to get the country moving and create jobs and get the stock market continue to grow. >> do you think that's what's going to dribble out? >> reporter: it's naive to say people don't care about social issues. of course they do. a large percentage of donald trump's voters care. they are checking a box and delivering on campaign promises for evangelicals and other social conservatives who voted

enthusiastically in november. i have don't think this president is going to move away from some of those things. we will traditionally expect to see policy detail laid out. with this president though we could see something very different. everything about his presidency has been different and often just by his own personality and often by strategic decisions to simply do things in a different way. i don't think we can say what we expect that we're going to see on tuesday. eamon, thank you for joining us this afternoon. jim cotton, a pleasure as well. we'll see you again soon from wealth enhancement group. repeal and replace obamacare for six years that has been the gop battle cry. it has caught congress and health care professionals off guard. we're going to look ahead at why that happened and what's ahead? wwe down slightly but coming off a 52 week high. coming up, we're going to grapple with a country cfo on

cnbc. first in business worldwide. we'll listen. we'll talk. we'll plan. baird. ♪

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cpac. he raled against obamacare but then he gave himself an out. >> we're going to repeal and replace obamacare. >> from a purely political standpoint the single best thing we can do is nothing. let it implode completely. it's a disaster. >> my husband had multiple other things and you want to stand there and him and hau and expect us to be calm, cool and collected. >> did the legislators under

estimate people's preference for this law? >> nick, i'll begin with you on the front lines of this. even as obamacare appears to be unsustainable the way it's currently structured, what good alternative is there for people currently on that program? >> well, you know, currently on the program it's pretty tough. it is the program, the law of the land. i said repeatedly that iowa has a big market and it's challenged. we have carriers leave next y r year. >> is it bungled because people are behind an improvement with

how health care is handled in the country? >> it's premature to use the past tense like bungled. you've seen a shift in the coverage of the aca for the last five years getting back to 2013. all we heard were the problems of the aca meaning the high costs, the costs it imposes on businesses, the lack of options, the challenges as nick was talking about and the disastrous rollout. since the election and since the inauguration we have been hearing a story about the 20 million people covered and what are all of the alternatives. it's been a shift that has changed things. i don't think you can say yes that the gop has bungled things. it's too premature for that. >> nick, question. is it possible for the republicans to place some tax in effect on the cadillac tax or get rid of the tax exemptions to apply for any obamacare or is that politically dead in the

water? >> i think it might be politically dead in the water. i'm not sure there's going to be enough. i think what they need to do is look at other alternatives and be more creative. talking about cha changes could look like. it seems like there's an opportunity to create a sustainable risk pool. >> so in addition to just how the obamacare is being characterized, what do you think is likely being considered. >> it's there along that lines. >> they're there. the people to purchase it on their own.

>> they're talking about the health care. >> that's a great question. >> i am pretty appreciative. >> it's going to continue for another year. there's a lot of work to do.

>> it's there. it's noisy and see what's going forward. >> they're pushing that. >> some of them say if you put us in charge of the house or in charge of the senate or the white house, we will get it there. >> that was the president and we'll see if they reverse on that. great. >> up next, a look at old time companies.

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>> small ler brands. >> further to the vc funds. >> including cooley. campbell's soup started this. >> general mills vc fund 301, inc. >> the company is there. only the products are there.

zbl they're built for insufficiency. >> thank you. >> what's about the fact that they're going to have the venture capital. >> the portfolio, just because you feel like it may be another day. >> it's a scale. >> in the big pharma companies, comcast. >> the euro is a big food

companies. we'll feel you. i don't know why they have to do that. >> there are bureaucracies. managing an established brand. >> that is how you make it. you're going off and starting it that does coolly coolly. >> if you get some guy out of business school. it's a total.

start their own business, they'll pay take your capital. >> they don't want the brand name on their product at that time. time for a cnbc news update. let's get back to contessa brewer. >> vice president pence and his wife are greeting 40 governors to their residence for a series of meetings. a lot of these governors are concerned about what a trump administration means for income to their states, state aid, but the vice president is reassuring him and them that he and president trump are committed to forming a strong. conservative values. let's be absolutely career. >> you have to be punished. they say you're what's wrong with america. >> millionaire investors.

>> it's a million dollars. he bought the laguna beach. >> they have six bedrooms and to return on the investment kelly. the annual letters in a bedroom and we'll be getting one of those tomorrow. then if you have any questions for warren buffet, you know where to find becky. are they or aren't they, if the trump administration believes china is a currency manipulator, what that means for the market and future relations right after this. thanks for doing this, dad. so i thought it might be time to talk about a financial strategy. you mean pay him back? knowing your future is about more than just you. so let's start talking about your long-term goals. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

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some investors are making big bets. seema mody has more. seema? >> the same time. >> come back in the prospect. 2015. it's not just hedge funds. i'm sure you have seen $7

billion come into emerging market exchange traded funds just this year. experts do say washington will play a critical role in how emerging markets perform in 2017 especially when it comes to president trump's policies on trade. it is worth noting, kelly, that hedge fund investments in emerging asia did decline in 2016. >> still interesting. seema, thank you. president trump throughout his campaign frequently accused china of currency manipulation and yesterday he was asked by reuters why declaring them a manipulator. here's what he said. i think they're grand champions of currency. i haven't held back. we'll see what happens. treasury secretary steve mnuchin had a different tone when talking about those practices. >> we have a process where we go through and look at currency manipulation across the board and we'll go through that process so we'll do that as we have in the past and we're not making any judgments until we continue that process.

>> so what's right here. let's bring in don and joe. john, what do you think the policy when it comes to china currently is? >> china's policy -- first of all, mnuchin is right and trump's an idiot. he has no clue what currency manipulation means. the chinese authorities have actually sold a trillion dollars worth of foreign reserves in the last year to support their kurps be si. that's trying to fall because chinese nationals are trying to get their money out of china. the chinese government has been trying to slow that down by supporting the currency. this is antimanipulation and if the u.s. were to force china to sell $3 trillion worth of more reserves, you would see a wholesale capital is like anti-qe. so this is nuts, this discussion for trump. >> but, john, so backing out a little bit. i understand what you're saying, of course, about what's

happening in china lately, but broadly speaking they're trying to hold the currency in a band. isn't that manipulation? >> first of all, most of the world for most of history has had six exchange rates. chinese exchange rates are fixed against the dollar from 1995 until 2005 on the recommendation of our old friend bob mundell. to do that they had to buy a lot of foreign assets in order to allow the currency -- allow the domestic money supply to grow in line with very high growth rates during that time but as of two years ago they had $4 trillion of foreign reserves. today they have three. that $3 trillion means they've been selling. they've been driving the foreign currency up. the reason americans worry about manipulation is they don't want a foreign government selling their currency to make it cheaper to sell us exports. the chinese have been doing exactly the opposite of that for more than two years. >> joe, how would you describe

things? >> i think we need to look at the overall picture of what the administration and everything is trying to accomplish. what they're trying to do is basing, as i said during the election, looking at american jobs, they're trying to look at the overall picture. i think that the emphasis on currencies and he's right completely that for the last two years the chinese have been defending the currency from falling too much. on the other hand, the currency has devalued by 13% in that time. what they're trying do -- what trump is trying to do, i believe, is to change some of the terms of trade not just vis-a-vis china but also some of the attitudes here in manufacturing because if what you're talking about is keeping jobs or getting jobs back to the united states, what you're really talking about, the real decision makers are american firms. american executives deciding where they're going to move or keep their manufacturing process. so in that picture and in changing the way that perhaps

american executives look at overseas i think there's a real point to be made about the chinese currencies and currencies in general as far as the terms vis-a-vis manufacturing go. >> let me bring in these guys. >> yeah. i mean, i guess, john, aside from of course china's current efforts to try and maintain roughly this level for their currency, do you think they're satisfied with their currency and how it trades against every other currency in the world right now? i mean, basically how many fronts are they fighting this war on? >> well, you know, about 2/3 of their reserves are in dollars. most of the rest is in euros, a little bit of yen. their biggest trading partner is europe at the moment, not the u.s. if you sat privately in a room with the chinese leaders they would tell you they're scared to death about domestic political instability inside china. the reason they're worried is what we've seen happening in hong kong, what's happening in

shinjong in the west and worried about migrant workers as they change from manufacturing into service jobs. they need to have a stable currency and a low inflation rate in order to keep that situation together. in addition to the currency things they've done, they've imposed draconian capital flows and crunched down on the media as if government has tried to assert itself stronger to control the local political and economic situation. >> and they have the party congress coming up. more power consolidation. in any case, currency just one factor. john rutledge, joseph, thank you guys for joining us. >> thank you. stars are gearing up to walk the red carpet at the academy awards this sunday. only a few will take home an oscar. coming up, we're going to get a look behind the scenes at the small business behind those iconic statues. first, wwe's wrestlemania is one

of the top touring events. the company's cfo joins us to discuss the booming biz of wrestling and what's next for his company. you're watching cnbc, first in business worldwide. with e*trade you see things your way. ♪ ♪ you have access to the right information at the right moment. ♪ ♪ and when you filter out the noise, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*tre. ♪ ♪ today, i am helping people work better... and also feel better. i am helping hospitals personalize treatments using billions of data points.

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the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. welcome back. today marks the three year university of the launch of the wwe network. the company is making big waves ranked at number five. the sports entertainment company is rapidly growing in a highly

competitive space. joining us for now on the future of the wwe is george barios. welcome back. >> thanks. thanks for having me. i can't believe it's been three years since we've launched. >> in a way i feel like it's been longer. it's part of the landscape. everyone feels it's a pioneer to go to the consumer. >> we find out that pie other nea -- pioneers get a lot of arrows in the back. >> how do you stay ahead? >> keep investing in the content. keep investing in the product. luckily we have a global fan base that we're energizing 24/7 on social media, on our traditional tv shows. if we keep doing that, we'll keep driving people to the network. >> if you had to do it all over again, would you just take the tv money? >> if i had to do it all over again i would have launched the network sooner. this is the place where we super serve our most passionate fans. it's our fastest growing business.

it's our second biggest business and second most profitable. my biggest regret we waited a year. >> how much is it a month? >> $9.99. we're up to 7,000 hours of content. >> how many subscribers? >> we just closed january 1.7 million so i think when we were here it was about 1 million. so that's a nice couple of years. >> amazing. >> yeah, it's great. >> i'm a little staggered you have that many people. >> you should be staggered. i'll tell you something else, on youtube we have 14 million subscribers. i did 15 billion video views over the last 12 months on social media. number one in the world. >> wow. if i were to try to imagine what the competition is for your core customers kind of eyeball hours as opposed to other sports, is it video games? is it other things that are -- >> if you're in entertainment, i'll crib something that reed hasting said, you're always competing for time. that's all it is, right? whether it's traditional tv, youtube, snap chat, video games,

books if anybody still reads, books. >> all the time. >> yeah, it's time. you're competing for time and every day gets harder and harder. that's why for us we say our economic moat is the brand. >> an unlikely sport is golf. when tiger woods was in golf, when you had hulk hogan, who are the stars? it's worth it to subscribe to this service and watch this and have these people who i know and who can broaden from 1.7 to make that number grow? >> you know what's interesting? when i talk to people, it depends when they watch with their parents who they think the big star was, right? you go backing up -- >> hulk -- >> i was going to call you out. it was hulk, the rock, stone cold, today is john cena. number one is. >> cena? >> john cena. >> 50 million followers. >> probably don't even know who he is. >> i don't. i'm pretending. >> we have to go.

you mentioned facebook, now you've mentioned youtube. >> yes. >> are you looking at this despite the fact that you have a subscription and drive people to that, does all of that other stuff out there on the internet help to drive people to become subscribers or is there a risk? i can watch the clip, why do i need to watch the whole thing? >> for us, that's a good point. what goes on youtube, facebook, traditional tv five hours life and what goes on our network is all different content. we don't cannibalize, we increase. >> i'm learning a lot. >> terrific. thanks for having me. >> thanks a lot. hollywood's most glamorous event is coming up. a small new york business has a key supporting role on oscar night. we'll have the details next. coming up on "fast money", the one dow stock that traders think could be setting up for the perfect pull back back. the name and how to profit at 5:00. at pgim we help investors see the implications

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welcome back. 9th academy awards are this sunday and 16 movie stars and a long line of producers, directors and craftsmen are hoping to take home one of those golden statues. we look behind the small business that's behind that figure. >> it's called polish tech. for the past three and a half months the company has been working on the oscar statues. they are known for making those oscars but has been around for 47 years working with famed sculpt sculptors. the oscars account for 1% of their annual business. >> it's a big project for us. it's fun. exciting. gets us a lot of press and attention. it typically, our role in projects where we're working for

sculptors we're behind the scenes. >> reporter: the oscars are made in 12 steps including being shipped to brooklyn to be plated in gold before being sent back for assembly. >> each one of these bronze castings has to be mirror polished. we start with contemporary technology, move into modern processes and ultimately a very sort of old world hand craft. there's not a lot of places that you can go even in the art community where you can get all of that in one roof. >> reporter: the name tags are done in a 24 step process and each nominee's name is engraved in advance. they will be on hand on sunday as the winners bring their oscar's to the governor's ball after the ceremony to have their tags screwed on the statues that they worked so hard for. not a bad perk of the job. >> so they have to -- are they holding their name tag.

i didn't know they made one for everybody. >> reporter: they make one for all the nominees. when you win the award you bring it to the governor's ball and there's an engraving station where they have the name tags pre-engraved, then they pick up your name tag and screw it on for you. last year he did even get a little star struck because leonardo dicaprio finally won his first oscar. >> i bet "titanic" was his favorite movie of all time. if i didn't win i would just want to take home my name tag. >> reporter: he lost me after casting. but 24 steps for name tags. all the detail and hard work that goes into it. it's really cool. >> counting each letter as a step. >> i don't think so. >> seems like a lot of steps. >> the first oscars they

dispensed of the awards in 15 minutes. end of a meeting. >> should go back to that. >> hollywood got a hold of it. now there's so many awards. it's a little -- >> these movies take so much -- any more not just one person and a few actors. >> but they broadened it. now best picture, ten pictures. used to be four or five. it's a giant makting exercise. >> you're going to watch it? >> no. i'll tell you privately. >> reporter: you guys sound like cynics. i got to hold one. it's so cool. when i held it, it's cool to hold. >> see, i like that. all right. great story. thank you so much the. next week brings us snap's ipo and president trump's first joint congressional address. we'll tell you what to watch for right after this.

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offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. welcome back. it will be a busy week next week. let's begin with snap, in krr inc. going public. >> plenty at stake. it's interesting they have been pretty muted in the price talk in terms of what they will get initial valuation.

it seems to me the skepticism is outweighing optimism. doesn't mean it will be a great deal. doesn't mean people will be wrong. it's striking to me there's not that initial enthusiasm and then you have the counter point. >> so few nowadays. i would be amazed if this thing doesn't go up else double digits. it can go 30%, 40% easy. if you're a broker nowadays or a trader, so few opportunities to make big money in a short period of time. >> then we have the quasi state of the union. they are looking for clarity and policy proposals. >> when it comes to market relevancy, it's the prioritization of things like trade, fairness as the president would call it and taxes. today it was one scripted line on taxes in his remarks to cpac and a lot of stuff about campaign promises on trade. i think that mix is probably not encouraging but doesn't haeng

the overall picture. >> hold it up for practice for sun evening. "west wing" guitar recital. one question to ask warren what would it be? >> warren buffett? would he vote for donald trump that trump would have made him this much money. >> thank you guys. have a great weekend. that does it foreclosing bell. "fast money" begins right now. it was looking bleak for the rally. stocks were on the floor. just like rocky punch by punch stocks clawed back and finished at its 11th straight record the longest stretch since 1987 when ronald reagan was president. stocks hit a new record, bond yields touched their lowest levels of the year. why are bonds and stocks rallying together and which is the first to break >> why does either one have to break. this great music coming in on friday. "rocky" was one of your favorite