>> cool. >> that is amazing. first time, i believe ever in monster truck, has landed a front flip. >> that's quite the record set. cool. >> no word yet if the driver was wearing leggings. >> probably not. thank you for watching "power lunch." >> "closing bell" starts right now. hello, happy monday, and welcome to the closing bell, i'm kelly evans at the new york stock exchange. >> that's the video i thought he'd pick. i should have known, though. brian sullivan, i figured, monster trucks, should have known. i'm bill griffeth. comeback for stocks this morning, selloffs this morning, the dow down 183 points at its low on the heels of the gop health care bill pulled from consideration friday afternoon. questions now about tax reform and even potential government

shutdown. we'll look at whether the trump trades in place since the election are still worth pursuing right now. >> yeah. the hospital stocks are getting a pop today again. we got someone who says although obamacare is staying, some of the names are in trouble. she'll explain which ones. >> first on cnbc interview, chicago mayor and former white house chief of staff rah rahm emanuel live from the nasdaq market site to ring the closing bell in the next hour. but we begin with this market turn around and washington's turn, the pivot to tax reform. bob pasani at the stock exchange. bob -- >> we have had a very impressive turn around. folks, you missed a great open if you didn't see it. down 200 points at the dow at the open, and came back through a combination of yields moving up, oil moving up, dollar moving up. let me show you how the financials turned around. citi is positive now. they were low 56 rate, 4% move

now going positive. look at others. there's a classic trump trade. look at other trump trades here. infrastructure, tax cuts, caterpillar right here, they were in the low 90s, still down, but 91 and change, showily moving up. another impressive move. another part of the trump trade, infrastructure trade we were talking about. here's vulcom, any infrastructure play, below 109 this morning. this is another 4% move. look. it's about to go positive. now almost 113 bucks. that's a big move. big fallout from the failure of the obamacare repeal. we've seen the health care stocks on the upside. $15 for tenet. now look, $18.54. i wouldn't make too much about this, but remember everybody was saying for a long time. we'd like the market to drop 5-10% to buy stuff. well, here's 5% down, and the infrastructure and the financial

space, and it looks like people really are meddling on it. guys, back to you. >> bob, thank you. now to the next battle in washington. of course, that's over tax reform. here a look at where we stand there. >> kelly, white house spokesman, sean spicer, holding the august timetable for tax reform calling the current form jut dated. >> we're uncompetitive. there's a reason that companies are leaving america to go to other places because same reasons companies move state to state. our corporate and regulatory system has become unattractive for a lot of companies that want to either manufacture here or grow here or begin here. >> one source tells me that the administration have been working on pieces of the tax plan, but there's no cohesion yet, and three big questions that need answers. first one is border adjustment. the head of the house freedom caucus, the group that took down health care, he doesn't want it to be part of tax reform. meanwhile, the number of senators skeptical of it keeps

growing. second is whether corporations should be able to deduct interest payments, getting rid of that payment is critical to financing the top line corporate tax rate from 35% to 20%, so the existential issue here is whether tax reform needs to be revenue neutral. do any tax cuts need to be justify set with revenue for somewhere else? guys, mark april 28th. the new date to watch. that's the deadline to pass a bill that would keep the government running through the end of this fiscal year, and that will give us clues about whether or not republicans can actually work together. back to you. >> you know, going back to this fight over taxes, which looms next. they lost a lot of help they could have gotten if they repealed obamacare. there would have been tax savings from that, a down payment to the next piece of this. now they don't have that. >> that's right. a trillion dollars in tax savings would have been gained had they passed aca. again, that goes to the question of revenue neutrality. now they get to 41 trillion in tax revenue over ten years. they could have been facing a

goal of just $40 trillion, and a trillion there and here, that's big money. >> i can't even imagine $40 trillion over ten years. amazing. a lot at stake there. >> let's get to the closing bell exchange for this monday. the dow down 42 points after having been down 183. we welcome back john manly who is feeling better. cnbc contribute or from securits is at post nine, and, holk le list from btig is at the cme in chicago for us today. welcome to all of you. gordon, a lot of people have been calling for a 5-10% correction. we need. that we have not had one in a while. here we go again. we've had one, 1% move in the dow on a closing basis this year. that's it. that was last week. now we get this selloff this morning, and the -- buying comes back, what's going on here? >> bill, look. the thing we saw there was a lot

of motion coming out of friday's nonaction on health care. the futures were pointed to a down opening, and the vix was elevated. what we're seeing is guys selling the vix, and they are going to continue to sell the vix as long as we're in the environment. when i say that, you know, the foed is faking money easy, unless they decide to tightsen, as long as there's easy money and people are willing to do buybacks and invest and people are confident in the way the economy's going, they're going to buy the dip. we're not going to see a selloff or get traction. >> that's true. buybacks continue their pace. jo john, are you encouraged by the fact that attention is turned earlier than it otherwise would have been to tax reform, or do you feel like there's risks that really gets done? >> tax reform gets done in some form. we're worried the republicans might be a little more risk averse, and therefore, it's not

as thourough as otherwise. not a lot changed. i'm with gordon. the fed wants to encourage growth. the fed is pushing money towards the economy that flows to the capital markets explaining the buoyancy. what's wrong with that? is it trump? well, the biggest mistake made in the last year is people saying that donald trump is through. >> i did see you are overweight financials, and i'm curious about that. they are down hard today, and, you know, there's a lot of people who feel like, you know, they are not going to be saved by higher rates all by itself, so what do you think of the selloff, and why do you like them here? >> well, i still think the basic fundamentals are in tact. they are entitled to a rest as we all are, but the real key factor, you'll get a normal key yield curve; meaning they can make more money. i think the regulatory environment might be less difficult than spent, and that's a positive. i still think those things are on the table. i wish they could go up every day. i love the industry, but they

can't -- on balance, they are still where they were. >> it's back below 100, that dollar index, and at the same time, oil's down, not getting a boost there. >> we are not getting a boost here, but regarding the trump trade and what's going on there, we're all working at rates now in the space because the fed is in the process of raising rates, but the question is how much will they raise rates because we had the failure of the health care plan last week, and so the question now becomes, is there going to be tax reform? is there going to be more infrastructure? is there going to be less regulation? the question becomes, how much is the fed going to be raising rates? they may not need to raise rates as aggressively if there's going to be prolonged question about when these other programs might come online, so the fed may not be raising rates as aggressively, so we may not be seeing rates as high as some had been thinking before, and so, therefore, we're seeing the

yield curve not necessarily going as flat had been looking at previously, and so we are still seeing a normal yield curve at this point. it's not bad splat as it's been, but there's not talk about inverting at this point, so that's a good thing. you're not talking about recession anymore. right now, you are seeing rates in between ranges they certainly have been for the last three, four months. you've got your rates. there had been talk if ten years go above, that's a bear market, but they backed down from 2.6% aggressively. at 2.37 now. so there's no question that you're not heading into the bear market at this point. the fed doesn't need to necessarily be as aggressive if we're not getting these reforms as aggressively as you had thought about. if you do get them more quickly, maybe the fed will be more aggressive, but not just yet. >> what about that, gordon, if the fed's not raising rates?

you feel the equity market is good to go here as long as the fed keeps rates low. if they don't raise like people expect this year, is the green light going for you? >> well, i think it has a lot to do right now with what's going to happen on capitol hill. that's where everybody focuses attention, bill. i mean, the fed will do what they do. i don't think they are going to do anything precipitous, but what's going to happen with tax reform? will congress be able to work together on some level? >> right. >> the one take away from the health care is that there's consortium they counted on to make some sort of real aggressive ive reforms to the t code and the b.a.t., these are things not going to be as important as people originally thought they would be, so we're going to be range bound with an upside bias. >> all right. >> all right. folks, thank you, all, for joining us today. appreciate your thoughts on today's market action. other interesting day for wall

street. >> in the meantime, a news alert on carl icahn, leslie, what now? >> that's right. we have a letter from seven democratic senators to carl a icahn questioning his relationship with the president. they copied the letter to the justice department and office of government ethics. in it, they single out three of his holdings including his 82% ownership in cvr energy, an oil refiner, as well as herballife, and they said, quote, your ownership of each of the companies and others raises alarming questions about how you and the trump administration are handling your many conflicts of interest. they cited his public announcement of his involvement in choosing scott prewitt to be the administration of the epa potentially impacting his cvr holding, saving him millions of dollars annually. it included 15 questions in

terms of areas like has he divest the stakes in such holdings, which have been consulted on. it's interesting to follow what happens as a result of this letter because as we all know, both houses are controlled by republicans. this is something not investigated for a few years, but we'll watch it, guys. >> leslie, i'm not here to defend carl icahn, but because of the questions of potential conflict, he's asked to advise on things he knows about. what else is he going to advise on but things he's invested in, so, of course, what he's talking about, will impact his investments, right? >> he has said he's not taking any type of monetary fee from the government for that advice. now, i think the main concern from democrats on this issue, and it's something that elizabeth warren really hit on with last week's interrogation of clayton, the nominee for sec, is this idea of, is he advising

the administration and his other nominees on areas that could directly impact his holdings? what types of conflicts of interest result from that? you're right. the president and presidents in the past have, obviously, going to members of the business community to seek their advice on all sorts of issues, so it's really difficult -- difficult arrangement with this one to really point to the specific conflicts. >> mr. icahn's been public about the views on this, writing on-eds, how it benefits the company and why there's problems with the refining rules and other things. leslie, thank you. >> thank you. >> seven democratic senators writing a letter, dow's down 48 points, almost turned green on session today after 183-point loss on the open. s&p down a couple points, but dow and russell is up. >> snap getting love from wall street, but will today's rise turn out to be as fleeting as its disappearing messages? we'll talk about that coming up. up next, chicago mayor

speaks with us in a first on cnbc interview. we'll get his take on chicago's emergence as the leading tech and innovation hubs. you're watching cnbc, first in business world wide. ness world . thanks for doing this, dad. so i thought it might be time to talk about a financial strategy. you mean pay him back? so let's start talking about your long-term goals. knowing your future is about more than just you.

it's how edward jones makes sense of investing.

we have to point out that president trump is signing a couple new bills regarding regulations, rules, regulations on education department, and it's just going to come up on us all the sudden, so if we interrupt the mayor, he'll understand. he knows how it works and pool strays as we call them here. in the meantime, the president announced a new office of american innovation, headed up by adviser and son-in-law jared cushner, reporting to the

president, working with tech executives, cultivating ideas from the private sector to make the federal government more efficient. >> as we said, inner workings of the white house and innovation of the america is something the next guest knows about. his city is a rising hub of it. joining us now in a first on cnbc interview is former white house chief of staff and current chicago mayor, rahn emanuel. prepa preparing to ring the closing bell. your city could use, maybe, you know, a fresh innovation image with all the crime and pension problems and everything that's always going on, and so tell us what's happening there. >> well, the innovation awards is something that in other city does, and as you know, the kpmg did a study showing chicago in the world is the sixth tech hub, bringing together universities, innovators, patent capacity, and also what we've done on immigration with reform what we've done with the universities, bring entrepreneurs' talents to the

city, and city of chicago as an innovation, a hub, kpmg studied the brookings institute, and when they declined, chicago went up last year to $1.7 billion, and it's actually the number one city for return on venture capital investment. and so it's a verse economy. number one city for four years in a row for corporate relocation. it's the number one city for five years in a row for direct foreign investment. those are leading indicators of a healthy economy, and one of the things that we're doing with our innovation awards, we do it every year, the mayor with the innovators, is helping and assisting entrepreneurs in the success in meeting major corporations in efforts. it's growing and succeeding, and the goal is to ensure more entrepreneurs and people participate in the strength as a university. >> as you well know, you know, as the trump administration unfolds in the early days appears they are going to be pitting the federal government against state governments in terms of costs.

they wanted to do that with medicaid on the aca reform bill, and now they are also with this situation with safe sanctuaries. the attorney general jeff sessions was part of the press briefing today. this is what he had to say about safe sanctuaries, which chicago is one of them, and here's what he had to say about complying with immigration laws right now. >> it is the policy of the executive branch to ensure that states and cities comply with all federal laws including all immigration laws. failure to remedy violations could result in withholding grants, termination of grants, and disbarment or ineligibility for future grants. >> so how do you respond? i mean, you know, yeah, you've been dealing with this for a while now, but he's back today to make that point once again. what do you say? >> well, first of all, you're looking at a perp who is the grandson of an immigrant to the city of chicago 100 years ago in

1917. my grandfather came to chicago at 13 years old because it was a welcoming city. we will be and always will be a welcoming city, whether you are immigrating from pole land, mexico, or where my grandfather came from, if you believe in the american dream, we welcome you to the city of chicago. >> we'll take it, but what about the loss of grant money that comes along with that? >> well, here's the point. in the city of chicago, like new york, like boston, like philadelphia, like fris, like seattle, we welcome people to the cities from other shores who want to innovate,ment to be entrepreneurs, who want to bring their family and give children a chance at the american dream. we're the only city in the united states, a b average in high school, community college is free. it's open to dreamers. i believe in the american dream. i think it's still possible in the united states, and i believe that people who have that dream and sacrifice and struggle to give their kids a chance at that american dream -- >> okay. >> we're going to honor. i think as -- >> mr. mayor, if we can ask

indulgence for a second, the president is signing education bills, which we'll ask about in a moment as well. [ applause ] >> this is a child's desk, but that's okay. smallest desk i've ever seen. [ laughter ] very, very glamorous, right? thank you very much. thank you, everybody, for being here. i welcome state and local leaders, and we had them all over the white house today, and it's a great honor. including governor eric of missouri, governor gary herbert of utah, lieutenant governor hampton of kentucky. we're all at the white house,

and we're all doing something very, very important today. i'm signing four bills under the congressional review act. before this administration, only one time in our history had a president signed a bill that used the cra to cancel a federal regulation. we're doing a lot of them. they zemdeserve to be done. first, house joint resolution 37 rolls back the so-called blacklisting rule. when i met with manufacturers earlier this year, and they were having a hard time, believe me, they said this blacklisting rule was one of the greatest threats to growing american business, and hiring more american workers. it was a disaster, they said. this rule made it too easy for trial lawyers to get rich by going after american companies and american workers who contract with the federal government. making it very difficult. you all know what i'm talking about? >> absolutely. >> does everybody agree?

[ laughter ] the next three bills i sign cancel three federal power grabs that centralize decision making in washington away from states and local governments. another big disaster. house joint resolution 44 removes a bureau of land management rule that took control of land use decisions away from states and local decision makers, and gave it to washington and that's not good. that's never good. history's proven that's not good. [ laughter ] even though you are from washington. [ laughter ] even you will admit it, right? >> no, we're not. we were from washington. >> from wisconsin. you had your choice. >> the other two bills, house joint resolution 57 and 50 eliminate harmful burdens on state and local taxes and school systems that could have cost states hundreds of millions of dollars, so it is states and local tax school systems, and

that was important. parents, teachers, communities, and state leaders know the needs of their students better than anyone in washington by far. so we're removing layers of bureaucracy to encourage freedom and innovation in our schools. i will keep working with congress and every agency and most importantly with the american people until we eliminate every unnecessarily harmful and job killing regulation we can find. there's a lot more coming. it's -- [ applause [ applause ] put them right here. perfect. thank you. this one you all know.

that's going to save a lot of jobs. [ applause ] okay. [ applause ] he's doing great. >> he is. >> he's doing great. he endorsed me. that was the best. >> thank you. >> thanks.

>> all right. the president signing those -- those are bills, not executive orders, by the way, but they do roll back various regulations as he was describing there. >> yes. he's cancelling three federal power grabs that concentrate federal power, wants to give it back to the states and local municipalities. >> and we have with us chicago mayor ramn with us. thank you for the patience, mr. mayor. >> not what i'm known for. >> yeah, well, as you would say, i'm not going to be the one to bring that up, but what are -- >> patience is a waste of time. >> what do you think of these bills specifically, and in general, those actions that he has taken so far to roll back many of the things that you began when you were at the white house early in obama's term. >> you're asking me to comment on something i'm just listening to over the phone. i have not read any of them. i have to say at least on the education, and just on regulations. i've basically on licenses of

the city of chicago cut them by over 60%. that's a piece of a larger economic strategy. it's not an economic strategy. we had more licenses on the books than l.a., philadelphia, arizona, and atlanta combined. we're taking them down from 150 down to below 50. i firmly believe in less regulation, but not as a total effort. second, on education. the city of chicago is the number one city, just written by david in early education, our high school graduation was 57% when i became mayor, but it's on track now for 87%. 8th graders led the country in math gains. i fundamentally believe in not reform per se, but quality. making sure that our kids have an education, as we go to a pre-k-12 model, and we everyone to have a plan post high school for more education. that's a minimum in an era where

you earn what you learn. you need a 21st century educational model, and high school degrees don't cut it anymore. >> mr. mayor, do you support, because it's interesting to see actually now that the trump administration wants to drive this deregulation agenda, the move to concentrate power back to the states and local governments, is actually coming from a lot of democrats. is there going to be a rebirth of experimentation at the state and local level among your party who say, no, no, no, we want to do things our own way and not be dragged to follow your administration? >> i have to be honest. i would slightly challenge you on this. you want to say we just began. i would say that's always been the case for democrats. education reform started, the whole charter school idea was about notion of competing and creating competition in the public school system. we now have the largest international program in the city of chicago in the united states. it's offering competition with neighborhood based schools to some of the schools that you tested in. >> do you support betsy devos?

getting charter schools more access -- >> listen, i expanded. again, with all do republic, that's the wrong question. it's not charter versus neighborhood, but quality versus mediocrity. it's the wrong question, and there's charters i've closed and charters expanded. there's neighborhood schools i reinvented with stem. we have the largest junior rotc program. the question is not about a brand. the question is about does it have a higher graduation rate, higher test scores, higher amount of kids going to college. qualitative questions. questions parents ask at the kitchen table is not about a brand. they ask, can my child get a high school degree that prepares them for college, community college, arm forces, or the trades? that's the question you have to ask. you have to ask the questions of us that parents are asking when they are thinking about school for their child. >> yeah. >> i have expanded charters and closed chart e es.

do you succeed at providing a child a world class education? if yo dou, you grow. if not, we'll consolidate, close r or change. that, to me, is all about quality. it's about measuring success. we lead in 8th grade math gains, 4th grade reading gains, graduation rate tripled every year the last four years, match the united states with a different demographics of going to college and community college. we have major announcements to ensure everyone has a post high school education plan, and that's how you measure set. quality versus mediocrity. not one brand versus another brand. >> running out of time, but i was going to ask the response to pulling the aca bill friday. i have to move ahead -- >> why, i want that question. >> i'm sure you do. let me -- okay, they are going to let me ask the question anyway. >> go ahead. >> are you relieved that that happened? i mean, we know where you are coming from, but just from a logistics standpoint, medicaid

continues, everything stays the same. what do you think of that? >> i think they have made -- first of all, the question i have for them, did you learn my lessons here? if you didn't learn a lesson, you will not succeed at tax reform or infrastructure. this was a major setback. anybody that thinks it's less is not being honest. second is, it has expanded coverage and consolidated costs. a direct example in the city of chicago. health care costs today are the same as in 2011 because we actually figure the out through wellness programs and other changes to help constrain costs and ensure people have health care. i would say the aca has been a contributor to that. that doesn't mean you don't stop innovation. that means the biggest challenge we have today is in that poo-65 premedicare who are losing health care and the system has to adapt to that. that's an innovation, an addition you can do. i'm not sure the republicans

want to actually expand coverage. >> everyone acknowledges you need to get the young healthy people into the risk pools to make the premiums come down again. that was the plan. how do -- what incentives can you do? >> here's the challenge. here's a challenge. wait a second. put aside the politics of they're trying to end what president obama successfully accomplished and has been a success in health care cost ton t containment. we provide kids coming out of school up to the age of 26 to stay on their parents' plans, yet you have marketplace pools where people, they want and depend on young people going into the health care plan. both of those have given young healthy workers choices, and one of the ways to figure this out is how to get people in the market place that are haelealth- >> yeah, getting them off the parents' care. >> undermines it. they were giving people a

choice, and they are taking it. one of the questions is, if you want younger people, should there be choice or go in the market? i say that having been present when that choice was. it used to be 18. expanded to 26. i think it's a great chance for young people to stay on their parents' plan, but yet gives an alternative not to go into the marketplace, but the real choice, here is also, premedicare population, which is losing health care at a greater cost that you want to keep in the system. how can you do that? my point is they were never interested in health care reform. they were interested in making an available tax cut for the very well off. they were trying to masker raid it as health care, and they were caught, and failed. >> i was going to say if pension costs and health care costs were on the same track in the city of chicago, but we're not going to give you that hard a time. it's a complicated -- >> you're not because it's not accurate. >> well, we would say pension costs have not increased over the last five years?

>> no. we got upgraded by s&p because we have controlled our health care costs and figured out a way to fund them. i'm adamant about reform, but, actually, we've made the tough decisions, number one in corporate relocations because we're doing things you need to do, denial's not a long term strategy. hit your challenges hard. we have done that. our health care costs are under control. >> nobody sells chicago like its mayor. rahm, good to see you. >> thank you. >> thank you for the time and patience, noted and appreciated. >> ringing the closing bell at the nasdaq in a few minutes. all right. we're headed into the close. 25 minutes left in the trading session. dow down 43 after being down 183 this morning. >> nasdaq and russell are positive. hospitals rally today. we have swomeone who says stock are in trouble despite the gp health care bill pulled. she'll explain why coming up.

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dow down 40 points now, we are on the floor of the new york stock exchange. gordon made an interesting point. you know, we've had one 1% move in the dow this year. >> right. >> otherwise it's kind of sideways action. he feels like until the fed really does raise rates, the easy money is going to keep people coming into this market with the buys on the dip like seen today, as a matter of fact. >> first off, i'm shocked gordon made an interesting point. >> nothing to add to that.

>> but he's right. spot on. the trend is here. as far as technical moves, we've seen higher lows and higher highs, and that trend's going to continue. we thought the world was ending this morning. it didn't. the vix looked to take off and breakthrough. it didn't. it's down. fear trade's gone for the time being and washington has not got in the way at least until august now. >> so we're in this for the foreseeable future, sideways action, you think? >> it's not bad either. it's good to have a correction. you know, we are taking a breather here. you know, now we're going to look at trump's agendas being watered down, and they are not going to be as effective as they could have been had this pass. we would have had a lot more optimism, but we're not having optimism. if we stay in the trend line through the summer when we are slow, there's, you know, why not? it seems like everything's setting up for that. >> all right. very good, thanks, matt. see you later. kelly? >> thank you. manufacturing indicators at a tipping point here, which stocks are poised for a pickup coming

up right after this. yes? please repeat the objective. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com.

snapchat getting a boost on initial buy and hold ratings

from the company's underwriters as you might imagine. morgan stanley and goldman sachs among firms with on the mistake views about the prospects. rbc with a price target trading at 23 now. the stock says it's banking on snap's ability to monetize highly engaged user base. ubs, jp morgan, and bank of america signed neutral ratings on the stock. >> 25 analysts covering the stock, on a hold. hospital stocks on rise today, up next, looking at what is ahead for that sector in now. stay with us. h us.

( ♪ ) it just feels like anything is possible here in upstate new york. ( ♪ ) at corning, i test smart glass that goes all over the world. but there's no place like home. there's always something different to do like skiing in the winter, jet skiing in the summer. we can do everything. new york state is filled with bright minds like samantha's. to find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. friday's decision pulling the gop's health care reform

bill. look at tenet, already, bid up before that went down and further continuing gains today. >> the next guest said there's head winds for some hospital stocks despite keeping obamacare. with more on that is our securities director of research and senior health care analyst cheryl scolding. welcome back. good to see you. >> great to see you both. >> green light for the most part now that aca is still the law of the land for the these hospital stocks? >> well, certainly is a sigh of relief that's resulted in the performance you've seep in the stocks, but also, i think, for the management team's of the companies, now that the decisions made to deploy capital and to continue along the kinds of patient care initiatives that have been innovative in part enabled by the aca. all of those things can continue. it's kind of back to business as usual, and the avoidance of a very significant change and a very big risk for the these folks, but there are still some

issues out there that are prudent to pay attention to. >> for example, cheryl, why are you neutral to take one company outperforming lately? >> okay. so tenet made interesting moves. one of the things that they did, which i think was smart, they acquired an interest in a company called united surgical partners that really positioned them after many years of tryi i squarely in the outpatient business, cost effective and fie quality. the challenge is they moved outpatients to the business, and now the hospitals look low margin, and, frankly, look to have modest growth. it's hard to find the growth there. as a result of the structure of the company, they have so much of their income coming from partnerships that they have to share with these other entities that about 80% by our estimate of their net income goes to these partners and only 20% to the shareholders, so we're concerned about that structure, but volumes in hospital land have been coming down even with the aca, and that's because of

innovation, and it could adversely affect tenet and et cetera peand its peers. >> talk about innovation that's the head wind in the years to come. >> right. we now have decisions made by physicians and within the hospitals, hospitals, themselves, as well as the health plans that's based on data and analytics and enabled by technologies, so it's literally in the palm of the hand at the point of care about what the right procedure is for the patient, the right setting for the patient, and more than not, unfortunately, it's not the hospital. it's not the hospital based outpatient unit or emergency room. >> yeah. >> we're seeing slowing growth rates in the front door of the hospital with 60% of heads in beds coming through the doors. if the growth rate slows or emergency room visits decline as they are for some of the companies, that could spell a problem for the part of the business where you deployed the most capital, and that's the in-patient hospital bed. >> sheryl, thank you for joining

us. great insight there on what's happening with the key sector. >> thanks. ten minutes to go. these markets still mixed, dow down 42, nasdaq up 15. >> new data from the dallas fed fell this morning. up next, debating whether it's time to buy or bail on manufacturing stocks. . . ♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore.

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the market on close orders show no imbalance to the buy or sell side. they paired off for this monday. meantime, shares of manufacturing stocks hit today after the dallas fed released its monthly manufacturing index report that fell eight points. >> now the time to buy or sell the manufacturing names? we have post nine from pointview wealth management, and johcm. are you buying the manufacturing names? if so, who? >> i wouldn't be. i'm a bear here because, quite frankly, these stocks priced in a huge trump surge. for example, caterpillar, up 20%

since election day, deere, boeing, the same thing. if we saw they were going to plow through washington gridlock, we saw it's not easy without infrastructure spendsing and tax cuttings, tuch hope priced in. >> you're our bull on this, and you like cat pill lair right now. what do you think of what daichds judavid just said? >> yes. step back and look what happened to manufacturing over the last 12-18 months and take a look at over the last three months what happened to the data. so let's look at the broadly at the data. you got mining cap x that's ninely at inflection point. you got ag demand improve k. you got global pmi that's actually turning to a positive inflection. then you got construction recovery on top of it. you put all this together, and then you look at the key players in the industry. you're going to see an opportunity to buy these stocks and at the current levels and 2

12-18 month time frame, you make money on the stocks. >> all right. you're a buying of cap that david's not interested in here. >> squeezed by time this hour. i wish we had more time, but we'll get you back. thank you for joining us today. >> thank you. >> a break here with the dow down 40 points at the closing countdown in just a moment. stay tuned.

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heading to the last two minutes of trade here monday. as you heard matt say awhile ago on the open this morning, looked like the world was ending. dow down 183 points. during the opening minutes of trade here, the first opportunity for wall street to trade on the pulling of the health care reform bill, but they came back again, and we're down 44 points right now. the ten-year broke below 240 in terms of yield at 237 at this appointment, and those people maybe if we go lower, back down to 208, but i'm not making that prediction right now. oil continued lower as well, but we're still around $47 a barrel bob, right now. what a day. >> very impressive rally, and it's not indicating what you are seeing. how important the market turn around was.

they were down 200 points. >> right away. we turned positive. this was remarkable. remember what happened, the it all reversed after the open. stocks moved up. the dollar started rallying, ten-year yield. i want to show you citi here if you can. they are a great example. we were down 56 in the citi, and these are four percentage point moves in big zostocks. >> financial etf down 7%. >> there you go. the point is, so, why is this happening is the question? i think partly that there's a lot of people who said, gee, i wish the market would drop 5% to buy more. there's the opportunity. all those big bank stocks are down more than 10%, and, today, it looked to me like people were picking at the bottom on them. financial etfs with heavy volume on a day we didn't have heavy

volume. that tells me someone's playing at the bottom, potential, short term bottom. >> interesting day, still on track for the maybe the worst month for the dow since january of last year. down 40 points on the close. stay tuned for hour two of the "closing bell." see you tomorrow, kelly. >> thank you, bill, welcome to the "closing bell," everybody, i'm kelly evans. confirming the worst losing streak since 2011, down a quarter percent today. that's better than we were at the early session lows, down 184 points as that fallout from the gop failure to pass the health care bill continued over the weekends, but we made up a lot of that. we almost went positive there this afternoon, but there on the bell, the dow dropping 45 points, 20,551. the s&p down just a tenth percent, two points today, to

23.41, and the nasdaq and russell bucked the trend closing positive. the nasdaq and russell notably up a fifth percent today, the levels there, divergence,down down eight straight sessions, nasdaq up temperature of the past 13. talking about that more in a moment. gold touched levels not seen since february. should you hunt for safety in the current environment there? there's a bull-bear debate coming up, but introducing the panel today, senior markets commentator, michael is here, and tom leiden from global trends investments here at post nine with david wright from sierra funds. welcome to everybody. mike, crazy divergence between these averages. >> it's a little bit of a day reversal. respect that. as you said, kelly, eighth straight day of dow down. you had a seven-day losing streak a. the lows this morning,

the s&p 500, down exactly 3% from the highs on march 1st. in a sinense, steam has come ou of the markets showing you the markets are not surprised by the notion we woke up with today, it's not an easy walk. you're saying the financials have been doing this since december. >> heavy industrials, they peeked in relative performance in december. thereabouts. >> amazing. tom, at the same time, we followed the fin, and we have seen it flow into stocks in a big way in the first couple months of the year. what's happening now? >> look at the etfs alone, great indicators. we had another record inflow in the first two months. where is it going? going into large caps. >> this was all while we had the rally. above 20,000, 21,000, march is another story. >> well, no. we have seen positive inflows on the equity sigh side, and the key thing is, you look at areas that are in love like e emerging

markets, seeing huge inflows so far this quarter, and in valuations very much in line, some in the single digits in the emerging market side. >> david, where are you sniffing around now seeing opportunity? >> we're looking at getting back into junk bonds with a selloff. >> really? >> from the start of the month, sensitive enough in our analysis to be set out, but we're looking at emerging market debt, particularly corporate emerging market debt as attractive. >> let me ask about the junk bonds, so to speak. i mean nay are close enough to equities. what about the stock market? saying that's an attractive place because they've seen a selloff, the same is said of the stock market. >> yes. but this time there was really no accompaniment in the stock market. sometimes one moves ahead of the other, a real bellweather. the stock market is choppy. maybe making building out up

top, but we've been wrong on that before as fed policy and other matters, this time, the trump bump. >> how many people seem to be getting invest the in the market because of trump? is it a main factor? is it a side story? i mean, because now if the whole idea is, we've gone from the trump agenda to it stalling, not overplaying it, but does that affect how people invest? >> interesting indicators that we've been watching the last six months have been corporate confidence. in small and mid sized companies, increased tremendously. just wasn't there in the last three, four years. if you are looking to make it higher or expand business, this is where the brunt of the economy is on the backs of the companies. if they are continuing to be confident, great. are they going to be patient with trump initiatives? i think so. >> mike -- >> i'd say there's a lot of overlap between the people who feed into the small business confidence and the type of people throwing money into etfs. the trump election and spike

higher in interest rates initially got people into the idea it was a different story line they could attach to their bullishness. that's the way i read it. it's not the whole cause of the move, but there's definitely a catalyst effect. >> go back to what happened with the dow and nasdaq. again, getting this straight. the entire market narrative is written around the dow right now. it's market drops after health care ajgenda stalls. from the nasdaq's point of view, it's a different story. is there beneficiaries like the hospitals or what's going on? >> not specifically to hospitals. for the month, it's been those kind of large cap growth stocks, sort of ones growing without benefit of policy or the broader economy, and i think that that shows you money wants in to the market or has wanted into the market, and it was finding its way into the areas they could be comfortable with if the economic indicators roll off. >> apple the best performer since the election, taking that position from goldman sachs,

tom. >> absolutely. so technology, even e though we've seen the pull back in the nasdaq is an area of pro-growth we'll continue to see. again, smart investors look at valuations. as we talked about earlier, there's smart data strategies -- >> oh, boy. >> that i know -- >> oh. >> you love them. >> makes my head -- the marketing, smart data. >> one example, okay? you got the indexes with $15 trillion -- sorry, billion dollars invested in each one of them. crazy amount. the fundamental strategies, out by -- it's amazing like buying in pes, half of what the emerging market indexes are now, already low, have done twice as well as emerging market indexes were left with. >> all right. >> look at valuations because i think smart data proves you wrong, kelly. >> emerging market fan here. would you invest through the

smart etfs? how do you get involved? >> we like to use value-added managers like ashmore based in lon dor. terrific manager of debt and emerging markets. that's all they do. they are massive. right now, the play is in corporate emerging markets rather than sompb. >> the timing seems to be good here. look at the dollar today. so look at interest rates. this narrative, guests put it well last hour, you're not realizing if the trump agenda is not moving forward, why is the fed aggressive? maybe we don't release the growth, interest rates fall, david, dollar's falling, and emerging markets are liking that quite a lot here. ? >> they are, indeed. a good couple dayings here, nothing lasts forever. >> why do you want exposure? do you have to call the dollar that it goes lower? >> no, not really. the emerging markets get punished from time to time emotion emotionally, and that leaves a lot of room to rally, and

compared to the established markets including the u.s., they are very jurn valunder valued. >> we are passive and active strategy. >> remind you, the fed is not going to base decisions on trump initiatives. they are, obviously, going to act in -- >> they are not going to ignore reality either if something changes. >> we'll see in a couple weeks, earnings come out. if they are positive again, this correction could be a memory. >> reminded us of mike's recent talk. they sat down, had interesting things to say about this whole move to indexing. take a listen. >> i don't have any real concerns about the growth of indexing. although, i would have to confess, though i have some kind of concern of the fact that there are only three firms, vanguard, blackrock, and state street that dominate the indexing field. i've also been in this business so long that i know that when everything looks sweet and easy, you better be worried.

the big guy hidden in the back of the room, you can't see him, huge strapping guy, carrying a sledge hammer, and just when you think everything's going fine, he takes that sledge hammer back and hits you in the nape of the neck. >> do you want feel so good. this was in the context of you asking him about how his approach and concerns about that. >> exactly. he said a billion dollars a day coming into vanguard, most in indexes. he pointed to the idea concentration of management, of etfs and index funds could get to extreme, in part because of ownership limits. there's three firms, not necessarily like they create systemic risk on their own, but they can't indefinitely expand as a proportion of the overall market. he's worried about that. i think some mechanical limits to exactly how much etfs and indexes. >> putting things in perspect e perspective, $2.7 trillion, $15

trillion in mutual, it's paying expense ratios five times what they are paying now. so i understand the trading concerns, but exchanges are doing a great job communicate kating -- >> we had another one last week. >> we did. >> i think you literally not only means not only the trading, but also just how much can you actually own as a single firm in some public companies without having to file as an insider. i mean, it's not really there yet. >> sure. >> he's looking further ahead. >> most of the money's in the large cap. >> sure. >> david, do you have sort of -- what do you think about etfs? are there risks that people don't understand here? >> no. i think the etfs are a safe vehicle. we use modestly within mutual funds, but look for alpha and etfs are index oriented. i have to mention, though, margin debt. it is at an all-time high, and

it's built up gradually. it's piqued previously concurrent with the piques of the stock market, maybe led a little bit. so that's one of the indicators of this topping process that seems to gradually be forming now. >> all right. any time -- no? >> margin that tends to basically reflect the underlying value of the index, and, in fact, david, it rolls over before the overall market does. >> i think if we're talking about liquidity, we don't turn to etfs because most are very, very widely traded. i mean, sure, there's going to be liquidity issues if we have a quick selloff. that's always the case. what happened last week? i think is just one of those things. >> all right. tom, thanks, david, appreciate it as well. there's another potential risk to the markets looming, maybe a government shutdown. let's get to john harwood with the latest, 33 days to go, john,

on whether this happens. >> that's right, kelly. look, it's only late march. there's time for the trump team and the republicans in congress to get back in their game and get some things done. however, they got significant land mines. let's go through them. first of all, april 28th, that's when current government funding runs out. it's got to be extended through the end of the fiscal year. that won't be easy to do. they may have a continuing resolution just to keep it going at the levels it's at now, but that's not necessarily easy. for a related reason that the 2018 budget resolution, the next thing they have to do is also going to be difficult. why? congressional budget office has said if they don't take action to reduce the deficit, the deficit within six years is going to hit a tral trillion dollars again. conservatives will press for something to be done here, and that's not easy. if you're going to reduce the deficit, you have to cut taxes or raise spending. and then after that, you have

tax reform. again, if you use the expedited procedures, reconciliation is what they call it, you've got to make it deficit-neutral in the long run. cutting taxes is not easy to make deficit-neutral. finally, the question of raising the debt limit. that's what caused a debt crisis in 2011. by the time we get to august, the government's going to run out of the extraordinary measures that the treasury can take to try to keep rolling over debt and not have to issue new debt, but you're going to have to get a lot of conservative measures of congress who don't like increase the debt to vote for increase the debt in order to keep it going and prevent the united states from having another credit down graid. a lot of work ahead for the republican congress and white house, kelly. >> i know it's early days, john, but the beltway types don't seem to exercised at the prospect this happens. what do you put odds at loosely speaking right now? >> well, i find is very hard to believe that a republican

congress is not going to raise the debt limit for a republican president. so i think that will happen. on the other hand, for the government running out of money in april 28, i think that could require a shutdown to action. you have to think if republicans want a smooth front, they would keep the government open, avoid the shutdown, but they tried to present a smooth front on health care, but that didn't work out. >> a lot to follow, john. gold trading higher. now the time to hunt for safety? debate is next p. the american health care act tabled for now, but according to the ceo, the entire american health care system needs an overhaul. what he says is the biggest threat to the industry coming up. you're watching cnbc, first in business worldwide. ss worldwide.

skblnch welcome back, gold rallying, and new concerns how tax reform could be impacted as a result. now is the time to turn to gold as a safe haven, nick here from

who is bearish on the metal, and asset management, believe it or not, bullish. welcome to you both. why do you think gold keeps going higher? >> well, i think it is a trump trade, if you like. if the best of trump is going to get through lower taxes, fewer regulations, cut the government spending, all that's good for the economy, good for the stock market, and negative for gold. but as we've seen with the health care, that's not going to be an easy ride to get through congress, and you look at the other side of it. higher deficits in he wants a president trump who wants higher, more infrastructure spending. how is that paid for? there's no indication at the moment. without the savings from doing away with obamacare, it's going to be tough to have an increase in spending for infrastructure for military, and still keep a balanced budget, and so we run the risk of higher deficits.

we run the ricsk of higher inflation. that's positive to gold. >> i want to come back to some of that, but, nick, why don't you like gold? >> any trade in the market, you got to pick entry points carefully. one month high, gold feels too extended at this point. the reason for the move today is the dollar. dollar's off 4%, gold up 9%. that's the link. the dollar might break down further, but the dollar should be okay here. i'm a little reluctant to get involved right now. it's overextended. >> this might be a really dumb observation, but if you're buying gold with dollars, and the value of the dollar goes down, but gold goes up, i have not made -- i guess if i'm in the u.s., i have, mike, help me out here. >> yeah, well, look. if you're a purist about gold, you can't lose, right? gold's the only real money, but, yes, you're right. what's it cost if dollars go down in value, what other assets go up? to me, the question i have

structurely, maybe you can talk about it, it looks to me, looking at the charst, it's a bear market, rally up the lows in the last year, 18 months, but it's to a level where it needs to prove itself at 1250 or 1300 an ounce. >> i agree. it has to prove itself. there's been a rally against the four-year bear market. look at where we were in 2011-12, we're closer to the lows than to the highs. i don't think by any means this rally is over. whether today's the day to get in as nick sort of is concern with, absolutely. i don't disagree with that. you pick your spots carefully. it looks to me as though the dollar was grossly over extended. it's now fallen a fair amount, but, you know, you look at other currencies around the world like the euro. we know what the problem for the euro is, with europe, we all know what the problems are, and that's why the euro came down.

seems to me it's overdone. >> yet your argument talked about trump, so are you saying you bet on gold if you want to bet against trump? is that the idea? >> well, i wouldn't want to put it quite so bluntly. i think if -- >> well, allow me. >> if the best of trump doesn't get through, then that's negative for the dollar, negative for stocks, positive for gold, yeah, absolutely. >> okay. then, nick, your argument is actually doesn't have much to do with the political aspect of this or the growth, you know, economic growth aspect of it. what's the fundamental for you looking at gold? >> over the long term, gold's about supply and demand, like any commodity. need to see more demand. i'm surprised how gold stood up with the indian currency and turmoil in the economy in the fourth quarter. the bottom is in, but extended here. look at the last five years, gold down 27%, the gold miner index down 53%.

bullish on gold? stocks are a better way to go. >> thank you, both. nick, adrian, gold up half a percent today. let's go over to the market flash. what's happening, meg? >> checking out shares of the stock that just opened up after halted slightly before the close. they are trading up on news that the fda approved the ovarian cancer drug, calling the drug -- about three months ahead of schedule. the decision date expected by last june. sales of the drug could be more than $2 billion. they are getting the approval today. citi said in a note, it's a best case approval scenario given it's a broad approval for patients in ovarian cancer. one of several drugs in a class called parp inhibitors. there's also clovis and there's been trading in clovis after the bell, down slightly after the

bell, tesaro up 4%. back to you. >> hopefully good news for patients. thank you. >> thank you. a black eye for uber. the future of the vehicles in jeopardy. why? after this. also, financials getting hit again today. are those so-called trump trades over, or are there buying opportunities? we've got stock pickers with the best ideas coming up.

earnings this afternoon, an alert, susan lee with the story.

>> kelly, the stock tells it all. we're up over 3% in after hours, a healthy beat on the top and bottom lines. let's start with eps, the quarter, $1.32 is what they made, $1.27 was expected. a healthy beat. revenues ahead of estimates. now, on top of the earnings that we got, they announced an acquisition. they are buying the casual dining chain cheddars scratch kitchen for $780 million. darden the turn around story. got involved, changed management, and now same-store sales accelerated and came back. back to you. >> susan, do you think the cheddar's scratch kitchen? i thought about the biscuits at red lobster. >> you know your food, kelly. hone honestly, i've never eaten there, but we should try it. >> a good excuse. thank you. susan lee, the darden shares up 3%.

what do you think it? >> it's a good quarter, slight upside to the guidance. i guess just the idea that something in the consumer space is going to hold its numbers is a good thing, and it clearly, this is -- their a beneficiary in some sense of less buying of stuff, but what's interesting to me is that the stock keeps holdsing its multiple. it's going to earn $4, a $78 stock. impressive. >> wow. other stocks under pressure, after soaring when donald trump won presidency, one money manager who says there's room to run in the space, and he'll name names next. making a name for himself going after wall street, now out of the post as u.s. attorney. coming up, a former trader convictsed of insider trading about what his removal means for street oversight. stay with us. stay with us.

welcome back, stocks under pressure, closing well oaf the lows, dow dropping 45. other stories to watch. viacomm climbing after the stock had the potential to gain 40% next year. the magazine signing the ceo's turn around strategy focusing on paramount pictures and flying ship networks like m fv and comedy central as the key driver.

viacom up 3% today. amazon go, no longer a go, delaying public offering of the cashier list convenience store citing technical issues. remember, amazon go was using cameras, sensors, and algorithms to determine what customers took with them and automatically charge accounts, but reportedly ran into issues when the store became more crowded. no word when the new launch date will be. uber's self-driving car, the autonomous vehicle wrecked in arizona promptsing the company to stop testing. uber moved tests to arizona from california after the department of motor vehicles there banned the cars from san francisco streets. the governor appeared on "squawk alley" sounded optimistic about attracting companies, and uber, in particular, to his state. >> arizona's open for business. arizona stock is on the rise. i visited silicon valley several times as governor, and i think people are starting to siee the can grow, invest in the state of

arizona and not have overly aggressive bureaucrats. my background's in the private sector and know what it takes to grow and build a business, and i want entrepreneurs in the country to see arizona as the place to be. >> that was back in december. uber said it expects its self-driving cars back on the roads in arizona, but did not provide a timeline, but it's autonomous cars are back on san francisco streets today, used for mapping purposes only, mike. >> you know, i feel like we've focused in so much on every one of the incidents, i don't think any of the companies thinks it's a clear shot to the future, but -- >> i know i've said it before, i wish uber was publicly traded to watch the stock. i mean, these -- to see what's -- what's the market discounting most? when something happens with self-driving, a culture problem? you know, what's seen as a threat to the existence. >> i guess the pattern of tez la. every time a video surfaces of tesla on fire then the stock was

hit. for me, the business model is not proven yet. beyond growing pains, nobody knows if this business of subsidizing drivers and rides is going to work. >> and if it goes public. all right. time now for a cnbc news update with sue. hi, sue. >> here's what's happening at this hour, everybody. british prime minister may meeting today with scotland's leader. it's the first time they are getting together since struggling over brexit. scotlandments its independent as the u.k. prepares to leave the european union. authorities looking into what sparked a deadly fire at an apartment building in oakland, california. this morning's blaze killed one person and injured four. the ten nanlts did not hear fire alarms or feel sprinklers. the three-story building housed those recovering from addiction, prison, and living life on the streets. sunday's nightclub shooting say 17 people were injured, up from 16, and one person was

killed. police do not have any suspects in custody quite yet. and president trump's childhood home gave one investor a payday. the queen's new york home bought in december for nearly $1.4 million was just flipped for a 50% profit. president trump lived there until he was about 4 years old. that's the news update this hour. i will send it back down to you, kelly. >> the guy did it in months, sue. >> he did. >> crazy story. >> very quickly. >> what changed? >> i don't know we tried to find out. he did not change much because that would have affected the price that he would have been able to get. he improved things, but that's it. >> good for him. all right. thank you. >> sure. >> stock rebounding, trump trades or sectors rallying since the election are seeing signs of fading. the banks rallying the most, but the etf down 8% in the past month, lost half a percent today, so are the trades worth buying? david nelson from bellpoint

asset management here at post nine, and shawn o'hara from pacer etfs. what's the opportunity here? >> i think it does. people put too much stock in the trump trade. secular dynamic in some of the companies going beyond rhetoric. look at financials. jpmorgan, bank of america, a host of others, it's not just the rollback of regulatory overreach. you know, i believe that we're, you know, in the early stages of a rising interest rate environment. that's good news for the banks, certainly for knelt interest margins. i think bonds trade between 2.6%, breaking upside at 2.6. >> shayou like jpmorgan and oth plays, for example, infrastructure here. >> well, we do own jpmorgan in the largest fund, and previous guest didn't mention, but growing dividend at 2.3%, but growing 13% year over year for the last four years, and traded 13 times earnings, the market was a lot higher on a pe basis

than some people are comfortable with, owning names like jpmorgan, which we own, a great opportunity to reduce risk as far as what you pay for stocks going forward. >> and, david, you like the same infrastructure play. >> i think everybody's focused on tax reform, likely a struggle at this point, but i think repatriation has bipartisan support funding all this. newcorp., people forgot ten days ago, they raised guidance, and analysts have been raising to raise estimates here, talking about, you know, strong demand in the markets, energy is strong for them. so, yeah, i like the name. still long. >> there's palo alto here, interesting play. both addressing why that's in the conversation, also, are you betting on momentum on the trump administration achieving its objectives here? i mean, do you have that confidence? is that why you make the picks? or would they work regardless in. >> i don't think you can bet against the guy.

big defeat friday on the health care bill. first crack at it. this is an unconventional cycle we're in. this guy's not a normal politician. nothing about how he ran was normal, so i would suspect we're not done, and just because he goes down the first time does not mean he'll fade. going forward, the agenda's good for the markets, looking for lower taxes, lower regulatory reform, signed a bill today on that. he's looking to make the military strong, looking for infrastructure spending. investor -- >> cyber? >> cyber is on there because of the election, russia, tapped my phones, wiretapped me things palo alto is interesting play because ipo years ago, 200, back to 100, but they grew revenue and earnings by 100% in two years. it's just a throw away thing on that, but we love -- >> i'm sure they appreciate that. >> we love free cash flow. >> david, we have to go. >> sure. >> quickly, do you think the

trump administration gets the wheels going again? >> unconventional to say the least and took a staining eight count of the last month. look, it's way too early to say. i think it's going to have a tough road with tax reform in some things, but repatriation, rollback, overreach, those -- >> important one. >> under the radar. >> could come to the floor. guys, thank you. appreciate it. >> thank you. all right, another member of the trump administration and family making headlines today. president trump's son-in-law, jared kushner, with new responsibilities and appointment with the senate committee. details next. with the health care act tabled rk , what's next? leading analyst and top doctor from one of the biggest health care consortiums offers their view. you're watching cnbc, first in business world wild. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade welcome back. president trump's trusted adv e adviser and family member is gaining a new role. we have the story from the white house today. >> reporter: news on that front and news today that we just learned speaker of the house paul ryan was here at the white house this afternoon meeting with both the president and vice president in separate meetings. we're not sure exactly what they discussed, but we're told they were talking about ways to move forward with the republican agenda post-obamacare, and speaking of moving forward with the agenda, jared kushner now getting a new job, already got roles in domestic policy, foreign policy, diplomacy, and inside this white house, and now

they are adding a new title here for jared kushner, the office of american innovation. here's what we know about this office that jared kushner's going to be running. obviously, he's in charge there. he's going to be working with executives from major american companies including apple, sales force, and also elon musk. focusing on technology, streamlines vette raps affairs, one thing sean spicer said at the white house press briefing today. spicer said that they are looking at procurement and technology. here's what he said. >> one of the things that jared's looking at is some of the procurement, the technology aspects, and if you've ever reality dealt with the government and recognized how outdated and unmodernized it is, it is not serving the american people. it is not serving the constituents in any department. >> reporter: so that's a lot of jared kushner's plate here at the white house. spicer said he didn't think

kushner's lack of government experience a problem here. he only worked in government for over 60 days now, but could be a strength bringing in a business perspective here, and, of course, kelly, kushner is going to be talking to intelligence committee folks up on capitol hill about his meetings with russians during the course of the presidential transition. that attracting so much attention now in the wake of this fbi investigation into whether or not there was any coordination between the trump campaign and the russian government, russian intelligence agencies in terms of russian hacking into the election. the white house says kushner has nothing to hide and volunteered to go to capitol hill to talk about it. kelly? >> a busy day for the president's son-in-law, thank you. health care stocks on the rise today bucking the broader market trends. they are up a third percent. president trump shelled the mission to repeal and replace obamacare for now. what's next for the whole industry? joining us now, len, health care investment firm, and dr. robert

pearl, president and ceo of the mid atlantic medical group, and author of "mistreated," and he's made his way across many stairs here on crutches. thank you for doing so. >> so many people said, i don't understand what the republicans' bill does for health care, and now the question is, okay, it's gone away, where does that leave the system now? >> okay. so both the affordable care act and the ach basically just redistributed how the money was used. who gets the money, who doesn't get the money. the fundamental problem with health care is the delivery system is broken. if we can't change that, as doctors work together as one, 2 21st technology, paper value, not for volume, it's going to explode no matter what. that's the problem that is in place. it's not a question of what happened in the aca, but where's american health care going? right now it's going to the

cliff. it will go off if we can't transform care delivery. >> you said for some time as well, none of the initiatives go to the heart of addressing cost control. maybe that was missing from the bill. how do you do that? >> well, you've got to look at the fact that health care today is 17% of gdp. it was 5% 50 years ago. it's going to be 25% in 14 years. possibly up to 37% by 2050. the reasons behind did relate to the number of what i call disease units that utilize per year relating to chronic conditions, prevalent in our society. people with chronic conditions consume five times health care resources per year. obesity is another issue. it's estimated 35% of americans are obese. they consume $1500 more per year in health care resources. lastly, the tremendous

demographic age shift we're going through where the people over age 65 in the u.s. are going to grow by 55% over the next 30 years versus 2 pennsylvania%. >> we know a lot of the alarming sort of trends, lets say, so, you know, what's one or two things to be done here? have anything to do with the obamacare exchanges? anything to do with the gop plan to replace all that somehow, are are these separate issues? >> no. they are separate as the prior guest said. the affordable care act would have begin more people health insurance, and once you go from being uninsured to having basic insurance, you spend more money. what we've got to do is focus on wellness care, decreasing the amount of disease that we have due to ageing, obesity, and smoking, and chronic conditions. that will require a long term focus, and that's the only way, in my opinion, we can bend the cost curve and stop health care costs from rising 6% per year. >> dr. pearl, i doubt anybody

would disagree with you saying we should pay more for value versus fee for service or volume. what's the path to getting to that point? >> sure. look at why health care costs rise so fast, and i agree, as seen as two factors. it's the number of people delivering care with how much they provide and the drug costs. two paths to get there. relative to the drug costs, we need a rational policy. what's going on right now in this nation is that companies are buying old drugs, just raising the price up because they control the market -- >> but that's not the overall problem with the health care industry. i mean, with the costs we're talking about, that doesn't help, but it's -- the problem is so much bigger than that. >> that's 20% of it. the rest of it has to do with the need to create efficiency. to do that, the government's going to have to level the playing field so competitive's not based on slicing, dicing, who is sick, who is healthy, about what they offer, get equal playing to compete on value, and when competition, true competition delivery system comes into health care, we'll

get to see costs go down. >> talk about the indian doctor. >> sure. a physician who has 11 heart hospitals in india. he does heart surgery there for $2,000. you say, india, low wages. he opened a hospital one hair from florida, cayman islands, does surgery for half the price in the united states. >> that is what happens if we don't fix a problem? >> any time there's an industry falling apart whether it's kodak, cameras, the bookstores, borders, and amazon, what you see is the disruption happens because the incumbents, right now, the american health care system, fail to see it coming or see it coming but do you want want to make the change. i think if we don't change the delivery system as a nation, what people do, where can i go get excellent care? quality achieved is as good as the best in the united states,

and he does it by having high volume hospitals, high volume surgeons, monitoring the quality outcome, and intervening sooner with better technology than we have in the united states today. >> well, that's a start. gentlemen, thank you. very much appreciate it. >> thank you. >> thank you. >> we got to talk more about the obamacare exchanges, and whether they will explode, but we're out of time. you can go for now. appreciate it. >> at your convenience. the fast track, where the keystone pipeline has been placed. we will go live to a critical pipeline site for keystone and see what it all means for the oil market and for oil prices. that's right after this. coming up on "fast money" top black rock strategist says now is the chance to buy the dip in one lacking sector at 5:00 p.m. stay tuned. you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are.

it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. containing this information. read it carefully. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

welcome back. there are concerns about what the pipeline could mean for the oil market. jackie joins us from nebraska, which is a critical junction for this pipeline. hi, jackie. >> reporter: good afternoon to you, kelly. it may not be a household name, but this is where two pipes become one, if you will. the oil is going to come down from the pipe that's been approved by the trump administration from alberta here to steel city, where it will hook into an existing leg of the keystone pipeline which will take it down to the gulf coast for refining purposes. a lot of people are wondering why we didn't approve this sooner when we needed the oil, why it's coming now under this new administration at a time when shale production is up. we have the resources that we need here, largely in the united states. so what's it going to do to oil prices? that's the big question. a lot of people think it could send them lower.

remember, we're at about a year out from when the pipes actually go into the ground. we need to get the state approvals. but people are saying low 30s are possible. back to you. >> low 30s? that's going to send a shiver down a lot of spines, jackie, and not just in nebraska. thank you so much. with the recent firing, wall street is waiting for the new sheriff. the former high-profile u.s. attorney from the perspective of a trader. tune in to power lunch tomorrow. steve leaseman will talk to stanley fischer tomorrow around 1:30 eastern. alpha seems more elusive today. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way,

attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. one of the largest business process companies in the world. whether it's in health care, customer care, technology, transportation or government. we touch millions of lives every day. conduent. advancing the everyday.

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welcome back. former u.s. attorney ferrara made a name for himself prosecuting a large number of high-profile targets, like steve could h7n9, and jpmorgan involvement in the bernie madoff scheme. what does this mean for the future of oversight on wall street? let's bring in michael, who served more than two years in prison after being convicted of insider trading in 2007. all part of the crackdown by

ferrera. he details the arrest, conviction and prison sentence. welcome. >> thank you. >> a lot of people were surprised that he was fired, resigned, what have you. speaking with a former colleague who wrote this book, and he said, look, all you need is to signal from the top one way or the other where this is going. do you think the signal speaks from the top now, that this behavior will be tacitly allowed to happen, that we'll see some sort of renaissance of this kind of activity? >> no. but you might see some type uptick possibly. you still have -- you know, he did good things in this area, went after people who deserved to be gone after. but at the same time, i think to a degree he went for a very convenient narrative, and in cases chose to fit that narrative, being that, hey, we're on the case and we're doing something about the financial crisis by going after

insider traders. again, i'm not saying don't prosecute it. it deserves to be prosecuted. you also have limited resources and time. if you want to go after insider trading necessarily, you might miss a couple of other things, like $1 trillion in mortgage fraud, high frequency front running, madoff and other ponzi schemes. i don't think anybody's saying we're going to tolerate it, but the focus should be broader. i think that would have a more beneficial effect on the economy. >> you know why that didn't happen that way is that they just were not prosecutable. at least not as easily presented to a jury. >> sure. >> as these insider trading cases should have. >> but it doesn't mean they shouldn't be investigated. you might have yielded real targets, and that might have produced real reforms. >> perhaps they needed to not be so sure they were going to get away. this is another point that david made. from your point of view, again, is it worth it for them to actually go after more people,

or even more firms, knowing what's at stake and what's happened in the past with that. companies have gone under because of that. nevertheless, what preet bharara did is they say, look, i've gotten 72 straight convictions, and perhaps that becomes the wrong standard. >> it does. take the career calculus out of it. and that becomes a problem. when you're so worried about the winning or losing of it, the truth and justice aspect takes a back seat to that. the focus shouldn't be, are we going to win this indication, is it a case that i will put it into a seven-figure job at a firm when i'm done. it should be the right thing to do. >> you don't think there will be a change now with preet bharara out, just a different administration, that has emphasized deregulation and s.e.c. has a different approach. >> there will be a change. if you're saying the change will mean people are allowed to go back and insider trade again as there was sort of a nonprosecution that took place for about 15 years? no, i don't think that will happen. i think with technology, and the

s.e.c. and everything else, it's a lot harder to do these things. it won't be such a focus as it was before. deregulation in general, and dodd/frank and everything else, there will be less of a focus on it. there might not such a bad thing if other areas are hit. >> thank you for being here. "fast money" starts now. >> "fast money" starts right now. the dow today down nearly 200 points. the markets clawing their way back. the dow and s&p did close modestly lower, while the nasdaq ended the day in the green. eighth down day. believe it or not that is the longest losing streak since 2011. it seems like the pullback may never come. may we call this now the teflon trump rally, and should investors be buying any market dips. steve, what do you think? >> we're