we're back with final trades. >> baba to 120. >> lulu, still sticking with it. >> earnings on thursday. >> all right. >> yunited is up today. think about the commitment of longs in that name. >> what you said was a telltale sign. good stuff. thank you for watching. >> i'm michelle caruso-cabrera. wells fargo going after former executives over the fake account disaster. the banks saying we want you to give back $75 million of your salary. is the worst over? another pr nightmare for united airlines. it was about leggings a couple weeks ago and if you haven't seen this video, wow, shocking new video of them dragging a passenger off the flight because the airline overbooked the flame. is it with united management? there's an even bigger group,

more important for retail eers. what do they it like? what do they hate when it comes to retail? "power lunch" starts right now. happy monday. i'm melissa lee. the dow, s&p 500, nasdaq posting their best gains of april but that got wiped out. stocks are moving higher, though. some stocks we're watching this hour tesla, the electric carmaker, now the most valuable u.s. ougautomaker. and shares of rent-a-center soaring. they say they are not exploring a sale, despite coming under pressure to sell. >> president trump set to meet with some of the nation's top ceos tomorrow. $27 billion for toshiba's

computer chip business. as we head into the driving season, up 9 cents over the past two weeks to $2.43. michelle? they want the mon y back. wells fargo chairman speaking about it first to wilfred frost. >> exclusively. let's get to the story, the board has reclaimed a $47 million off pay on top of the $19 million. and terminated her for cause. here is chairman sanger who oversaw the board review. >> the root cause of the sales pr

practices issue as determined by the investigation was the sales pressure in the community bank, the excessive sales goals and the failure to escalate the problem appropriately through the structure. the leader is responsible for all of that. >> he refused to be interviewed as part of the review. a statement says we strongly disagree with the report and lay blame with tolsted. sanger defended why the board had not punished him more severely. >> john did not create or impede the flow of information up through the community bank. the reports the issue was being handled without enough analysis

and digging into it. he was responsible for supervising a lot and relied but that's a supervision issue and not a proper behavior issue. >> the report suggested the company's structure was too decentralized preventing the flow of information, something sanger has said has been changed. tim sloan, the current ceo, who was treated likely in this report joins "closing bell" at 4:00 p.m. eastern time. >> this stock use d to trade ata premium. everyone said, wow, they managed to get more products out of every customer than everybody else. that's a lie, right? that's not true anymore. >> it's up iffy if you look at the share price since the election it's risen significantly but since the scandal broke on a relative basis it has lost ground. you can tell that from the price. >> so what happens to these people whose cash has been

called back? will they write a check or challenge it? >> two slightly different things. all the options had been given up he hadn't exercised. this $28 million on april 7th was based on an award in 2016 and the board now deciding it wasn't warranted -- >> stock. >> how he physically claims it back he doesn't have to write a check and hand it back it will be taken out of pension contributions he's due to have. tolstedt was allowed to retire last year but agreed not to exercise the rest of her exercisable options. $47.3 million for her options. >> what she could have gotten but not writing out anything from what she currently has? >> she doesn't have to write out a check. they will offset future pension payments.

>> when you say tim sloan was treated lightly, he was off the hook foy any of this, correct? his 2016 compensation doesn't seem to reflect there was a sales scandal at the bank at although he was coo at the time. the reason the board doesn't criticize him is twofold. during most of this period he was firstly cfo and then head of the wholesale bank and it wasn't directly his responsibility to deal with reports on this kind of nature. once he became president and coo in november 2015 they seemed to say that he acted pretty quickly. he was criticized for not removing tolstedt.

they seemed to treat him pretty lightly. met net, you're right, he has a 17% pay rise in 2016 which suddenly leaves a sore taste in certain people's mouths. >> an interesting interview today on "the closing bell." thank you. wells fargo, let's bring in scott. grit to have you with us. >> melissa, thank you. >> as these guys on set were alluding to, wells fargo does trade at a discount albeit a slight one. at this point do you think most of the troubles are behind and do you think that discount should be lessen ed, should be narrowed? >> i would say at this point most of the bad news is appropriately reflected in the stock. in short, the worst is over. that's not to say it will be completely smooth sailing but investors have taken out a good chunk of the premium, in fact, as you note d it does trade at discount. over time maybe it will grab back a little bit of its relative valuation. at this point investors have appropriately discounted all the

sales scandal into the stock price. >> what sort of valuation, it got a premium because it was able to cross sell, considered one of the best bankers on the street. and now that reputation is ta tarnished and their ability to cross sell is perhaps handcuffed? >> no, you're exactly right about that. the risk at this point would be that wells perhaps overcorrects to the down side. thoerdz they were so heavily focused on things like cross sell and aggressive sales goals before that now with better handcuffs on they take a step back and revenue momentum takes a step back as well. my best guess is that over time wells fargo will trade probably at a bit of a premium to money center or universal banks, perhaps a bit of a discount in line with regional banks which is about where it's trading now. >> and you have a hold rating on the stock. scott, thanks. >> you bet. thanks a lot. news in the bond market,

rick santelli is following it. how is the demand, rick? >> reporter: well, the demand wasn't bad but slightly below. i gave it a c-minus. the deal 1.525. the one issue was 1.52. it extended just a bit. the bid to cover was the biggest fly in the ointment at 2.62 meaning investors forked over about $2.62 worth of demand for every dollar's worth of security available. that was the weakest bid to cover anes april of '09. a little bit above average and indirects and directs were a little below average at 8.3%. so $24 billion, three-year notes out the door with a c-minus tomorrow will be ten-year notes at $20 billion followed by wednesday's auction in front of the holiday end to the week which would be 30-year bonds, 1 $12 billion. tyler, michelle, back to you. >> got it, rick. thank you. big earnings week, solid numbers. are they going to lift the market or geopolitical concerns

going to hold back the rally? joining us steve whiting, global chief investment strategist at city private bank. steven, i see you're telling clients you like emerging markets, emerging asia, latin america. the united states is not on that list. why not? >> we're fully allocated to the u.s. but this is a multiyear move we've been underweight emerging markets and for the first time went to a full overweight in all of the em regions. this is about the six-year bull market and the u.s. dollar beginning in mid-2011 which we think continues but in its final stages and so the valuation discounts that we're getting in emerging markets is arguing for us to phase in -- >> so it's not concerns about whether or not washington's going to get corporate tax reform done or anything like that? just a simple valuation tradeoff? >> that's right. i think that we are more likely than the market now believes to

actually get corporate tax cuts whether we call them reforms or not done before the year is out. i think that investors had to be patient, and i think the markets have been patient despite all of the rhetoric about this. but this is a drama, they've seen three competing tax plans. i think they will have to settle on one and get one done. >> david, do you have the same regional outlook when it comes to stocks, go overseas rather than the united states. >> there is more opportunity abroad. you're seeing emerging markets, europe in particular, a bit earlier in their business cycle, very different monetary policy versus the developed world, namely that they are cutting rather than contemplating raising rates. we do see opportunity in places outside of the u.s. but i don't think you should completely dismiss the u.s. there's a decent amount of risk globally and with the u.s.

equity market being almost a safe haven we still think there's room for exposure. we're not quite as bullish as we were but think this earnings season will be a good one which should provide support to creep higher. >> so among the sectors that you follow, david, what would be your two or three picks? >> we continue to favor the cyclicals relative to the defensives. so we like things like financials. we like technology, industrials, materials, energy. in terms of what i think will have a good earnings season, my models are point to go a decent quarter for financials. a very good quarter for energy although as we've seen there's been disappointment over the past couple of quarters and materials look like they could do all right as well. industrials in tech look like they may cool off on a quarter over quarter basis but, again, across the board, the comparisons look quite favorable given the earnings recession a year ago. >> why do you stick with financials? if we're seeing lending down across the board we don't have any sort of glimmer of hope in terms of concrete deregulation in the financial industry, at least not yet. we have a yield curve that's

been flat since december. to me those are all reasons to not be in the third worst performing sector of the year. >> yes, there are plenty of reasons to not be in financials. we try to take more than just a one quarter view when we think about financials relative to a year ago, i mean, rates are higher, rates are higher relative to a quarter ago. we are cautiously optimistic that financials should have a good earnings season but, again, when we look at the price action post election and at the beginning of this year there was certainly a lot that got priced in in terms of deregulation we think might be more challenging to achieve than investors appreciated. >> we're getting evidence of that lately. thanks so much. good to have you on. >> another firestorm of controversy for yunited airline after this video made the rounds on social media and just moments ago united airlines ceo weighs in. plus, the trump administration pulling out all the stops trying to get tax reform through congress but how long will it take to find consensus, which is always elusive on capitol hill?

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[ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] outrageous video of a passenger being dragged by his arms from united flight. the other passengers can't believe it's happening in front of their eyes.

the incident taking place before takeoff at o'hare airport on a flight that was overbooked to louisville, kentucky. phil lebeau is live in chicago and this comes at the very same time the airline quality report card is being released. >> reporter: right. and ironically enough the people who put together that report card called last year the very best ever for airline travel. it was not the best scene when a passenger, you showed the video earlier, it's really hard for people to say, are you kidding me? he was bumped from the flight, would not give up his seat and united called security. they removed him. they had to forcibly remove him by dragging him away. this is upsetting.

i apologize for having to reaccommodate these customers. our team is working to conduct our own detailed review. we are trying to address and resolve this situation. one thing is certain, on public relation social media united is getting hammered. boycott united has been trending for most of the day. united having no xhags at all for how to board passengers. it's going to go a lot further or will have to go a lot further than issuing a statement about this incident. as you mentioned, michelle, this incident happens on the eve of the rankings being released. this is put together on d.o.t. data in wichita, number one last year alaska and then delta, and of the 12 united came in at

number eight. i've talked about this a fair bit today. shares are not moving down today. why? at the end of the day this, while it may be a huge pr nightmare and they may have mishandled the situation, it is not going to force investors to dump the stock. that's what investors are wo worried about as opposed to the public relations nightmare. >> the reason they were making space was for other united employees who needed to get to another flight, correct? >> reporter: correct. that's a big part of it. they start offering money. they stopped at $600, $800. why not keep trying to use dollars to clear the market? you get to $1,500 i bet somebody gets up. >> reporter: these are the details united needs to be more

forthcoming. is there a cap what crews are allowed to offer? is it $1,000, $8,0000? if they're repositioning crews, which is understandable because they have other flights that will need to leave from louisville and how many that might be affected. do they immediately bump them off planes. most people don't read the fine print but it says in there that if it is an oversold flight they have the right to eventually say i'm sorry, mr. jones or miss smith, you have to get off this flight. >> it makes for very bad pr. >> absolutely. >> to be clear, phil, it was not uni united personnel who dragged him off the flight. >> reporter: that's airport security here at o'hare. >> you didn't see the walkup to it. he obviously refused to get off the plane.

this was airport security that dragged him off. >> correct. that's protocol that they said you have to leave and he said i'm not leaving. the plane has to take off. we have to get it where it needs to go and these people need to go where they need to go and they came in and physically removed him. >> phil, thanks. we bring in dean crutchfield. how big a foul did yunited commt here and how big is the damage that it will suffer as a brand or does it not matter because if you fly out of newark you are going to fly united. >> the leggings incident, people may have forgotten that, too. this is a big impact on their business. it's the fact it will become a bit of a joke regarding united's reputation.

it's good to see them take the stage to be the spokesperson for the crisis. >> we would love to have mr. munoz come on our air. >> absolutely. if he wants to call in, we'll get you the number. in a situation like this, does the ceo need to come out of his or her bunker and speak? >> absolutely. no doubt about it. you have to have a plan, have a key spokesman who could communicate in a bold action. that ceo needs to open up about 300 channels of communication with all the various media. basically get out there, tell the truth, communicate to your staff and partners and most importantly communicate to the media. he should be open to speak to the major media channels. >> you're available to help him,

right? >> he'll give oscar the phone number. how common is this to have somebody actual ly ejeblgted frm a flight like this and does it help the law is on their side basically. it's a pr nightmare. it may not be morally right to do but legally it is. >> legally it's right to bring on the stewards from the airport. i didn't see any evidence of the captain there. is the captain involved to be courteous to that person because he wasn't acting aggressively, to request that he leave the aircraft. if he doesn't he will have to bring in the air traffic security. what was the preparation for that man to be informed he was going to be taken out? the air traffic guys must have told him but the very fact they were engaged meant that he would be approached and in a sense like a criminal. and arrested by the very nature they were on the plane.

>> how often does this happen? >> reporter: actually in the latest airline quality rankings last year was the lowest level ever that we've seen denied boardings as a whole. overall there's been a shift in terms of the philosophy for all the airlines compared to 15 or 20 years ago which was oversell, oversell, oversell and if you bump, you bump. that's the way it goes. they have better software systems. also keep in mind usually this doesn't happen because people will say that $600 sounds good. i'll take the next flight. as an industry there are fewer than in the past. >> i am shocked there's not a congress person coming out demanding an investigation and passenger bill of rights.

>> give them time. >> the trump administration pushing hard on tax reform, a tax overhaul past congress may mean scrapping the plan he ran on. the latest straight ahead on "power lunch." oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

welcome back. all the major averages in positive quarter, a quarter percent. the s&p up by five and the nasdaq up by 12.

aeropostale, a few of the teen retail names that have filed for bankruptcy. there are some bright spots, however. the retailers that are cracking the code on teen retail coming up.

i'm con it tesstessa brewer. israel closes its border fearing an imminent attack. it comes just before the start of passover and isis claimed responsibility for two attacks on christians during palm sunday services in egypt. impeachment proceedings have begun in the case of alabama governor robert bentley. he's accused of having a relationship with a former aide and inappropriate use of state resources. bentley's wife of 50 years filed for divorce after the allegations. bentley says, hey look, i've done nothing illegal. the airline report cards are out. the annual survey finds airlines are getting better at sticking to schedules and losing fewer bags. do you think anybody is paying attention to that today? of the 13 largest, alaska

airlines comes out on top. talk about best friends, a man jumped in canadian freezing waters to save his dog. the dog fell through thin ice at a park and, as you can see caught on camera, everyone involved safe and dry. it shows you the power of the love we have for our pets, our fur babies. >> i am so relieved to know the dog is okay. thanks, contessa. >> so president trump is all in on tax reform. that may mean ditching the plan that he ran on, however. joining us with the latest on the corporate tax story which is so huge, ylan? >> reporter: the white house is, quote, not committing to any specific time line for getting tax reform done. that sounds different from what mnuchin said when he was on our air in february. >> working behind the scenes carefully, running a lot of

numbers and we're taking into account a lot of issues. you're going to see something in the near future. >> reporter: the asosociated press is reporting the white house is completely revamping the plan the president ran on during the campaign. that streamlined individual rates. treasury told me the plans of fundamental principles have not changed. republicans are grappling with some really basic questions like can they get behind a plan that increases the deficit, or would it be okay to have a temporary tax cut instead of a permanent one? with all the discord inside the gop the white house republican leadership had begun reaching out to democrats as a potential source of support. however, it would oppose even $1 in tax cuts for corporations or wealthy households. this group said it objects to any proposal that would increase the deficit. that would make nearly all the plans republicans have floated

so far nonstarters. >> it's all so complicated. thanks, ylan. this comes as the president prepares for a big meeting tomorrow with some of the nation's top ceos. let's bring in robert costa from the "washington post." recently famous because president trump called him to explain what they were doing with the health care reform bill. any calls lately? >> i'm hearing from my sources in the white house that it's moving forward, that speaker ryan, gary cohn are all trying to put their heads together here but a lot of open questions about whether they have the votes for anything else besides a corporate tax cut. >> does that mean exclude personal tax cuts for the moment? >> i'm suggesting they don't have the votes yet for a major tax reform package that includes personal tax cuts that includes different deductions.

what they're trying to figure out is what is the political calculus. can they get any democrats to come in and work with them on a broader tax package. if not it will be hard to get republicans to sign on in a wholesale way. >> is there any talk about what might happen with the border adjustment tax? is a carbon tax out? or is, as the saying goes, everything still on the table? >> the speaker, paul ryan, has put it into the package. the white house likes it because it's not a tariff, which is maybe the president's preference, but it's something. when you start talking to the senators they need to get anything through. one has a walmart in his state. democrats, republicans up for re-election have big retailers in their states lobbying them hard to get rid of the border adjustment tax. it could be dead on arrival. >> who is driving the bus in the white house on this? gary cohn? >> cohn for sure.

cohn is a rival. they are working together, i'm told. he is head strong and wants it to come through in the way health care did not for the president. >> i believe the rough outlines of a potential tax plan trump is target i targeting middle class. what do you see as the stumbling blocks? >> i mean, you look at someone like chuck shchumer from new york, it's hard to go to his major donors. a lot are vulnerable in 2018. there's an appetite for tax cuts. where get complicated, he's been planning his whole career to do tax reform. wants to bring a lot of different things through. i'm not sure there's a political

appetite on capitol hill to revamp the whole code. all of these reports about steve bannon and jared kushner, what's the "game of thrones" situation? >> they were close during the campaign. they were buddies in a sense. two media exec utivesexecutives temperaments to be sure. now they have real devisions. kushner has become more close with gary cohn saying the president should be more moderate, more focused on securing legislative wins. it's a strategic difference more than a personal one. >> does that mean that bannon might have to go? i assume blood is thicker than water and jared kushner is almost blood. >> and the president has always run a family business.

he captures the mood. the base who wants this wholesale change, this it disruption in washington. he's not going to look to leave only a few months in. he could be out. that's why the president based on multiple news outlets told both of them and reince priebus to figure it out and start working together. >> robert, thanks so much. after wiping out gains earlier stocks pushing higher again right now. where are the opportunities for investors in the market? mark harris, head of research at rbc capital. mark, good to have you with us. >> good to be here. >> i believe you have a list of companies you think are the 30 top stock picks going out there. tell me how you identify them first and then we're going to cut to four or five at the top of your list. >> sounds good. our approach, and we've been on talking about this before is really a bottoms up process. we have analysts across every

region and we ask them to give us their best. we look at the list and try to consolidate these themes. this one has largely been a list we think was heavy on cyclical growth. and heavy on financials. we had a big rally in those names. a little bit of a pause. now we think we're coming back to that. the list so far has done really well. we're beating the benchmark by about 50 basis points. >> how long ago did the list comes out? >> we refresh this annually. it kicked off right at the end of december. >> so far you're outperforming the markets by what did you say, a half percent? >> about a half percent. led by names that are very specific, though, like netflix and led by names like broadcom. these are the ones leading the charge. we think we're about to come back to the rest of the list. >> and yet one of your top picks

is noble energy. >> noble is one we're excited about. we just finished taking a trip to israel to take a closer look to their exciting gas fields, the development going on. it's 50 oil and 50 gas. the export potential for noble could accelerate. at a minimum it's a ton of hidden value there and it's a good mix between the oil as we see both accelerating but oil holding at about 50. >> why do so many people like pnc including you? >> look, this is kind of a core traditional bank name. slow but steady, if we see any amount of that this is one of

the companies that will have tremendous benefits that haven't participate participated from the rally. we see just a healthier companies, more economic expansion. it's linked into that growth as well as the personal side. >> one each. >> ipg is really just about growth and economy. it's a gdp story. >> and mastercard? >> this is, again, linked. more people continue to spend. mastercard wins and they're in a great position to do it. >> and i exercise that. >> google firing back. >> reporter: a google

spokesperson tells us we vehemently disagree with the claim every year we do a comprehensive and robust analysis of pay across genders and have found no pay gap. the department has not provide ed any data. an ongoing department of labor investigation. because google is a federal contractor, the department says it is required to let the government inspect records. google is protective of compensation data that's used to hire at that enter. the labor department's regional director, janet wipper, testified in court here in san francisco that across the entire workforce. they tweeted it closed it's pay gap.

this is not the first time it has been under fire. and the latest, remember, comes at a time when tensions are running very high. back to you. >> what is that phrase, don't be evil? >> retails, thank you, falling over 2% year over year. a big loss for the sag sector. who is doing retail right? anybody? new numbers on the health of luxury retail next. xury retail .

welcome back to "power lunch." new clues about the state of luxury retail. courtney reagan with the details. >> nice to be able to bring you positive news for once in the retail sector. just out with strong first quarter organic sales up 13%

with sales growth in asia, europe, and the u.s. this is even after the ceo warned analysts at the end of last year that he was extremely cautious for 2017. now all five of lvmh's main categories grew double digits. fashion and leather goods -- this is the largest group -- and includes names you know so revenue growth far outperforming expectations. selective retailing, this includes sephora, saw sales improve 11%. that was slightly better than estimates. even the smallest group, watches and jewelry sales, jumped 11%, almost doubling expectations. now lvmh is still cautious looking ahead citing a particularly unsaern certain environment at the end of the release. worried luxury could be heading for the biggest pullback since the great recession citing record low rights, gee owe

political uncertainty across the globe and more. he will speak at the company's annual meeting on thursday. so far we just have the release. it is very interesting because he was very nervous. but these results are very good. >> 13% increase overall, do they break that out geographically? i'm curious how much better china is that we saw a real uptick particularly in the vip segment. >> exactly. in some areas they do but it's funny they divide the houses and the categories. >> low rates and high stock prices? >> he's worried we've been too good for too long. he says that when you are in a phase of growth for so long it can only go one direction and he feels that direction is backwards. and so that's where he's very concerned and he pointed in particular to the second half of the year. >> he's seen a lot in his life? >> yes, he has. >> courtney, thank you. pipe earp jaffray is out with their survey. we have the details of what teens really want and what is no longer in.

here is pipe earp jaffray's senior research analyst. great to have you with us. >> thanks for having me. >> it seems to sort of confirm what a lot of people think. nike is at the top and amazon is teens' favorite website. >> there's definitely some consistent threads there. the athletics base overall continues to see new highs. so nike clearly leading that probably more importantly rate growth, brands really breaking through. it's now the third preferred footwear brand, second to nike and vans and we think that will be one that continues to go forward. >> and also what is going on with under armour i would think would be concerning. it is the number one brand no longer worn. >> that one does concern us because candidly when we think about the space it's still very healthy. not a lot going on in fashion but athletic is a place where teens in particular want to spend. you would hope under armour would pick up with that and it's

not. that is the brand to your point, the number one brand male teens no longer want to wear. we are concerned. >> any why or why not? >> we don't go into details in terms of why that may be. one of the things we've seen from our own checks is the under armor line doesn't have the same amount of newness that we're seeing across other brands. you think when a teen wants something that's hot, that's fresh off the market, it doesn't have that. steph curry had been big for a couple of years. we're seeing that wane right now. >> you see the same with north face? >> yeah, north face was another one. it usually profiles among teens as a favorite athletic brand. it consistent lip has been the number five preferred athletic brand. this was the first survey we saw dipped below the top 5. padegonia is now the number five brand. and they were cited as a brand that male teens were just

starting to wear. so we think that's encouraging but, unfortunately, just not the same for north face at this point. >> is athletic wear big because they're teenagers and they can't afford higher end stuff? is that part of it or no? or no? >> i don't think that's the case. athletic in so many cases it's actually a higher price point product than some of the traditional fashion plays like a forever 21 or even an abercrombie or hollister. i think what's important is teens, two things, one they care about comfort. there's a casualization kind of cycle right now in fashion. >> i know, it's so regretful, quite frankly. >> i think you nailed it there. my 11-year-old and all of his friends spend their lives in either nike or adidas sort of track pants because they're comfortable. >> if you can, why not, right? erin, i'm curious. the top handbag brand is michael kors. by a long shot pretty much. does that give you any hope for kors stock which is down about

13% year to date. >> we're still on the sidelines with this stock. yes, it's still the number one preferred brand but it's just not as important as it had been in terms of the share. so it's 33% of the vote. it had been 38% of the vote just a year ago. we are seeing it lose share to brabds like kate spade, brands like longshan and the luxury space. gucci is also starting to make a profile kind of comeback in our survey even though that's clearly much higher end. kors we would leave it on the sidelines for now. there's still some trouble -- >> i want to meet the teenager who's buying gucci. >> $100 yoga pants and gucci bags. >> must be good. >> erin murphy, thank you. >> thank you. >> two big upgrades on two of the hottest technology stocks around. we'll tell you what the analysts are saying on "street talk." that's straight ahead here. all-girl version of "street talk." >> ooh. >> on "power lunch." straight ahead. straight ahead. he's on holiday. what do you need? i need the temperature for pipe five.

ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.

but we've got the get tdigital tools to help. now with xfinity's my account, you can figure things out easily, so you won't even have to call us. change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount the analyst citing amazon's dominance in the american market which is maintained by prime,

mobile penetration, third-party growth and estimates the company could expand market share another 16% in the next five years. they also are optimistic about their international investments and of course web services remains the driver of the bottom line growth for the company. price target more than 1,000 bucks. 1,100. currently trading just over 900 bucks. >> the second call is the same kind of call. you're thinking the analyst is late but not when you see the price target. piper jaffray upgrading tesla to overweight from neutral. 368. the second highest on the street. the analyst drove a tesla for seven months, had a bunch of investor meetings with the company last week. now the analyst says growth investors -- this is a growth stock investors can't afford to miss, even if investors have to employ, quote unquote, creative valuation methodology. ie it is a story stock. >> momentum. it's going to grow into the valuation. >> sure. >> goldman sachs has added hilton hotels to its conviction buy list. that does not mean it's going to jail. that means goldman really likes

it. hilton has yet to report a full quarter. but ablts think hilton's solid cash flow and capital allocation are underappreciated by the market. they have swapped out marriott for hilton in the conviction buy list citing that marriott has outperformed whereas hilton has lagged and has catalysts ahead. price target 77 bucks. another $20. >> final stock, canada goose. another firm initiating coverage. credit suisse setting its first rating at outperform price target at 26 canadian dollars. cs says goose is a unique brand it is a fuchxal brand that also appears to a luxury consumer. this positioning can sustain high teens to low 20% revenue growth over the next five years. there's also room for significant margin expansion and shipping to direct consumer, i.e. not going to the retail channels, going right to the consumer maybe through either their own stores or through the online channel. but this is a winner so far from ipo land. >> they haven't maximized that

chain yet. fed chair janet yellen delivering remarks to the university of michigan later on this afternoon. we're going to tell you what the market is hoping to hear. "power lunch" is back in two. ac.

good afternoon, everybody, and welcome to the second hour of "power" along with melissa and michelle i'm tyler mathisen. two hours until the closing bell and here is what we're watching at this hour. when janet yellen gets ready to speak, people watch. and we will watch and see what investors expect her to say. we're watching tesla as well as it zooms past general motors to become the most valuable american car company of all. plus we're following the developing story at fox news. advertisers are bailing out on bill o'reilly. viewers seem to be sticking with him. >> check out some of the movers we're tracking for you as the dow is just off its highs. the biggest gainers are oil and industrials. a big trucking deal to report. swift and knight getting together for a $6 billion merger. that is helping other trucking

stocks as you see there. it's a weakness in biotechs. insight, vertex, rejenneron among the worst perform k stocks today. >> fed chair janet yellen set to speak in about two hours. steve liesman joins us now. what can we expect? >> there's no speech, no topic of a speech, so we really can't say exactly. but we do know she will be interviewed by susan collins. she's with the ford school at the public policy university of michigan ann arbor. we know collins well. she's well versed in things the markets care about because she has moderated at the fed's jackson hole meeting. she'll also be taking questions from the audience and via twitter. wall street wants to hear yellen's views on the disappointing jobs report and prospects for the fed to reduce its $4.4 trillion balance sheet. on that topic st. louis fed president jim bullard saying overnight from australia, "now may be a good time for the fomc to consider allowing the balance sheet to normalize by ending reinvestment." the thinking among economists seems generally to be that the jobs number not disappointing enough to deter the fed either

from hiking rates or eventually reducing the size of the balance sheet. here's three ways to look at the jobs number. here's the lame one, the one everybody focused on was the 98,000, much less than the 175 expected. adp was 263. and the household report was 472. it's been running a little bit stronger recently. other indicators have shown very low jobless claims and strong growth in tax collections. add to that the 4 1/2% unemployment rate. you have a market that remains pretty sure the fed will hike again in june and there's little expectation yellen is going to deviate from that script. >> when we saw the minutes there was surprise that they talked about doing the unwind all at once when it comes to letting the balance sheet know or doing it progressively -- >> gradually. >> a taper. >> so perhaps because this woman is so well informed on monetary policy we might get a question that might clarify the answer? >> that would be huge, michelle. in fact, i think name going to tweet that out right now. that's a good one. do you prefer -- i was

fascinated, in one part of the minutes it suggested they were in favor of the gradual decline to the reinvestment. another part had them equally assessed. so it's unclear how they want to do it and there's different reasons to do both. but they do have some $2 trillion to work out if they don't want to have an inflationary balance sheet. long way to go. >> steve liesman. the dow, the s&p 500 moving a little higher right now after losing gains earlier today. it is of course a big week for earnings. so what should investors expect from the market? listen to the legendary investor jack bogle. >> i think stocks are relatively expensive. when you compare them with bonds they look a lot less expensive because the future returns on bonds, if you look at, say, the yield as being a good proxy for that, are only going to be 3% give or take. maybe 2 1/2%. >> bonds pricier than stocks. let's bring in paul hickey, co-founder of bespoke investment

group, and vadim zlatnikov, chief market strategist at a.b. global. you guys mildly disagree about the direction or the potential for the stock market. why don't you go first, paul, and explain why you think that the bull market is innocent until proven guilty. >> yes. i think jack bogle summed it up perfectly. the market's not cheap here. but historically looking at bull markets you don't tend to see a market end just because of valuations. there has to be some sort of catalyst. and while there's all sorts of problems that people bring up, disarray in washington, i think the internals of the market that we're looking at here have been confirming this rally and until you see a deviation from that it's hard to just say okay, now is the time the market's going to decline. take march 1st, for example, when the market peaked. we saw the cumulative a.d. line of the s&p 500 hit an all-time high. we saw high-yield spreads narrow

to their lowest level and the percentage of stocks hitting new highs expanded to the highest level since december 2013. and for the last year every leg higher we've seen in the market has seen an expansion in the number of new highs. so i think until you see a deviation you tend to stick with it here. >> va dim, i don't want to characterize you as a nervous nelly. in fact, you see a 4% to 6% potential pop from here based on earnings that will come out shortly, but then you see the market ending the year lower than it is today. what's going to happen? >> well, a number of things. while i don't disagree about the long-term attractiveness of stocks versus bonds, i think the bigger concern is what's going to happen between now and the end of the year. and i actually see two ways that the market could possibly decline. the first and the more likely, you're starting to see wage pressures amid the environment of very low productivity. so the cost structure's going to be up around 2 1/2% to 3% by the end of this year. which means you need to have inflation at that level in order

to avoid degradation of earnings. the way it looks now you're not going to get that pricing power. sought earnings could start to disappoint against fairly lofty expectations as we move into the third and fourth quarter. even if the earnings did come through i do believe it would look like the fed is behind the curve and key multiples will start to compress despite the 10% earnings growth that we would get. in both of those scenarios i see a negative outcome. >> vadim, you prefer european stocks? they've already outperformed u.s. stocks although they have a lower evaluation. are you concerned at all about 23re67 elections and just the political uncertainty in europe? >> look, in investment you get paid for taking risks. sought risks being priced in right now is the election outcome. but first let me take a little bit of an issue about outperformance. the outperformance i think was on the order of 1% since the u.s. election. so i don't really see that as narrowing the valuation spread. the case for european stocks is

that almost every strategist is recommending european stocks relative to u.s. yet we've seen almost no money flows into europe. and so a lot of the money is on the sideline waiting for the outcome of the election, which is the risk you're being paid to take. >> do you look at the world regionally or do you think in terms of sectors? >> no, i think on an international domestic basis outside of the u.s. you do have some opportunities here and what's really interesting is that for all the talk that this rally in the u.s. has been driven by trump and the election of donald trump, why is the u.s. underperforming the rest of the world over that period? is trump's election better for foreign stock markets than it is for the u.s.? so i think there's other factors at play here so that when you see tax reform getting delayed and people saying that's going to be a real bad thing -- >> do you take money overseas as a result? >> one of the things we like to do is we focus mostly on u.s. individual stocks but what we'll

do is focus on companies that have more of their revenue exposure outside of the u.s. heading into earnings season analysts are very negative on the energy sector and the materials sector. as far as earnings revisions are kernds. and they both have a lot of international exposure. so i think that those are some sectors where you have international exposure that investors can focus on in the short term here. >> got it. >> gentlemen, thanks. paul, vadim. >> financials kicking off earnings season. let's take a closer look at what to expect. lawrence galup, $20 billion in capital under management. the index has shown a high correlation with the s&p as well as the gdp. these findings are based on the first two months of every calendar quarter. these are based on real results, real earnings. lawrence, welcome to the show. good to see you again. >> thanks, melissa. nice to see you too. >> what you found matches up with the performance that we've seen in the stock market, i.e. technology looks like the best performer in terms of earnings and also the best performing sector of the year.

>> technology is having a great quarter in our universe of companies, especially business to business software. businesses are investing in productivity enhancement, partly to avoid labor cost increases. and it's working for the customers and it's working for the tech companies too. >> you also found that energy cost is taking a greater share of the consumer wallet. what are you seeing and how do you think that will impact the various sectors? >> we're ending an almost three-year period where gasoline prices have been going down, down, down quarter over same quarter year before. this quarter gas looep prices are up to the consumer an average of 24% and we're seeing a big impact in the consumer sector. not surprising, but you have consumer discretionary spending down about .1% in real terms. you have wages going up. but with gasoline going up so much the spending has to be cut back somewhere. interestingly, we're seeing some recovery from in profitability in the restaurant sector in this

quarter, ending a trend of declining profitability in that subsector for the past few quarters. >> so if you're a good measure -- if this often mimics or can look at the gdp of the united states or the earnings performance of the s&p 500, what is it telling you right now about the coming quarter? >> revenue growth overall is very good. and when you add -- you're universe we don't really have loends to the energy sector or the metals and mining sector. these numbers are very consistent with a gdp growth rate. also consistent with a profit margin compression. you can look at health care where for three quarters in a row health care services companies in our portfolio have not been able to even maintain their profit margins. they have very good top line growth but they're having a hard time maintaining their labor costs in particular as they're expanding. >> what are you seeing yourself in terms of your business and

lengd? with the bank earnings coming up a lot of people are focused on commercial italian loan growth down 2.7% compared to a year ago. what are you seeing right now? what's your interpretation of this decline? is it a blip? is it because of uncertainty? >> well, i think that certainly transaction-driven loan volume is down. tax law changes, whether that's going to be capital gain rates that discourage sellers from selling or the border adjustment tax which almost no one i know thinks is going to pass but everyone has some concern about. it's slowed down the pace of new private equity deals very considerably. so it doesn't surprise me. it's very consistent with our experience that commercial industrial loan growth would be slowing down or even contracting. >> all right, lawrence, good to see you. thank you. >> thanks, melissa. >> lawrence gol buchlt of golub capital. >> here's what's coming up on "power lunch." viewers seem to be sticking with bill o'reilly even as advertisers are not. is fox news going to have to discipline him, do something?

an iconic american brand name made a comeback, and now the company's trying to bring detroit back as well. we'll talk to that ceo. plus we'll have a uniform wonder by joe dimaggio live in studio. cool, right? we're talking baseball memorabilia. all that and much more coming up on "power lunch." on "power lunce the peace of mind and the security just like the marines did. at one point, i did change to a differentompany with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected. we're the williams family, and we're usaa members for life call usaa today to talk about yo insurance needs.

welcome back to "power lunch." the markets are off their highs

but dow transportation stocks are outperforming the broader index. the index up about a percent on pace for its best day this month. this after trucking giant swift and knight transportation combined in a deal worth $5 billion. the dow transportation index moving in a range crossing up above their 50-day average price level of 9249. something bullish to watch at least if you like the transports for the short term. >> sexual harassment claims against fox anchor bill o'reilly do not seem to have driven away viewers. ratings are up since the story blew up into a scandal about a week ago. julia boorstin is in los angeles with the latest. julia. >> hey, tyler. the o'reilly factor's ratings did increase about 10% in the week following "the new york times" report about sexual harassment claims against bill o'reilly. now, the latest just yesterday fox responded to the mounting pressure by announcing it's launching an investigation, telling us, "21st century fox investigates all complaints and we have asked the law firm paul

weiss to continue assisting the company in these serious matters." now, this news out just yesterday came after 39 companies pulled their ads from the show in protest. though many say they've reallocated their ad spending elsewhere on fox news. the stakes are high. cantar media tells us o'reilly media generates more ad revenue than any other show on fox news or cnn or msnbc, bringing in about $150 million last year, according to cantar. pivotal research says that if fox fires o'reilly, "it would bring revenue risks" but that the recent success of talker carlson's program in place of megyn kelly provides confidence that the fox news platform is bigger than its personalities. now, it's not just about advertising. this scandal could impact the decision of the uk's independent regulator offcom which they're scheduled to make on fox's acquisition of sky. that decision is due in the next month.

guys? >> all right. don't move, julia. let's bring in brian steinberg also, senior editor at "variety." what are you hearing? >> we're hearing the company for now is kind of circling the wagons around bill and they're trying to keep him on the air, i think. >> yeah. i'm not surprised, right? when you bring in that much money. at some point are they going to be forced to do something? and do you hear any kind of plan b? send them off for a few months, have him do a mea culpa, the standard kind of thing? >> it's a great question to ask. look, the advertisers while they moved off his show are still putting money in the network. another thing to consider is fox news generates humongous fees from cable operators who distribute the programming and that's not to be sneezed at either. you try to take fox news off the air i suspect that many people in the midwest and other places like bill o'reilly. his viewership is not abandoning him. he's not coming under any kind of duress from people who view him. what you're seeing are protests from companies or organizations that would be against fox news anyway i suspect.

some of the thinking you're seeing internally. >> and the president of course came out last week in support of mr. o'reilly but i can't help but think that the way things unwound, unwound, unwound, julia, for mr. ailes last summer, it began to unwind for him quickly when paul weiss was brought in to lead an investigation. >> these things can start to unwind quickly. we've laerntd about five different women who have had these allegations of sexual harassment against bill o'reilly. that was reported by the "new york times." but oftentimes once there's an investigation started more women will come forward. so there's really an interesting factor to watch. and i wouldn't hesitate to underscore the importance of the timing right now. we're right now heading into the ad selling period. this is when fox is going to try to be getting advertisers to lock in ad spending for the next year. so there's pressure on fox to try to resolve this issue and reassure advertisers. even though right now most of them are reallocating their spending elsewhere on fox news, this still does not look good.

and they're going to want to try to get this sorted out sooner rather than later. >> what does this mean in terms of reallocating spending, julia? in other words, fox news isn't feeling a dollar impact at all because those dollars are going one for one to another part of the network? i would imagine that o'reilly's program commands a greater multiple or a greater rate compared to other spots on the network. >> exactly. so a number of advertisers who we reached out to told us that they are reallocating their spending elsewhere on fox news. so for now it wouldn't have an impact on fox. but a lot of them have not commented whether or not they're reallocating the spending. fox told us last week that most of the kissers were reallocating, so they haven't seen an impact yet. but this is still the very early days of this investigation. and we'll see what can happen. in two weeks we have the up front ad sales period. over the next couple of months advertisers are going to have to decide if this is a platform that they want to be affiliated with. so fox is under pressure.

>> if they let bill o'rooilly go, how quickly before he ends up on another network? >> they just signed a brand new deal for bill. he may have to sit down for a while if he were to leave. >> but you understand the idea that there would be a lot of other networks that would probably be dying to have him, right? >> eem sure his voice would be very welcome -- as long as it's behind him in some fashion i'm sure he'd be welcome on other networks, absolutely. >> i'm thinking of glenn beck who used to get a million viewers at 5:00 in the afternoon. people didn't think it was possible to get a million viewers at 5:00 in the afternoon. he did it. and then he went offline and -- well, he went online, went off fox and went online. >> only because advertisers found him toxic. >> right. exactly. could bill o'reilly do the same thing? >> i spoke to him earlier this year about his decision to renew. he was having some thoughts about it because he was in the last year of his contract and he said the audience had gotten so big he had to think anew about whether to continue or not. but i think he just signed a new deal. he clearly wants to day on the air. and i think fox would like to keep him if they can.

that's not determined right now. >> what do we know, brian, about the relationship between rupert murdoch and o'reilly and maybe even more importantly rupert's sons and o'reilly? >> that's a great question. our understanding is that rupert is very involved in fox news operations right now. as you know, when roger stepped down, rupert came in as executive chairman. he stayed there. we understand he's very involved day to day. he's organizing a lot of the moves. he actually put tucker carlson in place at 9:00. so he is very involved. i think, you know -- i think inside while this is not a great episode for bill certainly at all there's a respect for what he's done for them over the years. he helped build this network starting in 1996. >> i know. it's amazing stuff. brian, thank you so much. julia, you too. brian steinberg is with "variety." a stock that's popping 150% coming up in the good, the bad and the ugly. can you attract business to an accounting firm using tactics from the food industry? "power lunch" will be right back. t back. for decades, investors he used a 60/40 stock and bond model,

with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪

welcome back to "power lunch," everybody. tax day a week away. and one accounting firm is serving up tax advice from what looks like, yes, a food truck. rock and hammer tax service.

i think what you need is a chisels in there. >> or a scissors. >> rock and hammer tax truck is in bryant park. no, you can't get tacos there. they take questions from passersby for free. hoping they will then turn into clients. there it is, painted up. cpa truck. if you're near bryant park in the middle of manhattan, go get a free tax consultation. melissa. >> time for the good, the bad and the ugly in today's trade. and we start off with the good here. straight path communications a deal announced this morning. at&t acquiring straight path. this is a spectrum play essentially. up by 150%. the premium, though, is 162% here. this is an all stock deal, by the way. national fuel and gas is the bad today. new york has rejected the company's pipeline project to carry natural gas from northern pennsylvania and it is an ugly day for therapeutics md. the fda delaying review of one of its drugs but says it doesn't

involve a final decision on the drug. the stock down a whopping 19%. >> wells fargo clawing back $75 million from xebltexecutives ov that fake account scandal. is that enough to appease the powerful watchdog firm iss? it has recommended voting against the company's board. we'll find out next on "power." " listen up, heart disease.) you too, unnecessary er visits.

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here's your cnbc news update at this hour. the white house says it's open to the possibility of more strikes against syria. press secretary sean spicer says defeating the islamic state will help bring about conditions for new leadership in syria. through the political process. funerals today for many of the egyptian christians killed in two suicide bombings during palm sunday services. 44 people were killed. isis claims responsibility and warns of more attacks. egypt has declared a three-month state of emergency. secretary of state rex tillerson is in italy ahead of the g7 foreign ministers meeting where he attended a ceremony for world war ii victims of the nazis. tillerson says the united states will stand up to anyone who commits crimes against humanity.

and new york will become the first state to make tuition at public colleges and universities free for some middle-class students. they plan to -- the plan will apply to students whose family has annual income of $100,000 or less for the fall of 2017. and then in 2019 that number will rise to families making less than $125,000. that is the cnbc news update for this hour, michelle. >> thank you, contessa. we are 90 minutes from the closing bell. stocks are higher but not by much. all three major averages in the green by -- they were higher by a quarter percent. now we're a little more than .1%. two stocks we are watching closely. amazon back above $900 a share. tesla's above 300. and now today it is the most valuable american car company topping gm, ford, et cetera. big watershed moment for tesla. the oil market is closing for the day. let's go to jackie deangelis at the cnbc commodity desk with how it closed.

>> looks like we're going to close at $53 a ariel. making new session highs moments ago. $53.12 for wti. brent today seeing a high of $56.04. part of this is on the back of reports that there's another crucial field in livia that's seeing a production problem. part of it is on the back of the momentum we saw to the up side last week on the back of the syrian air strikes and this possibility that maybe there could be something to come. the entire energy sector of course is benefiting from this. we are watching the s&p 500, energy the best sector there. and also the xle getting the benefit of it too. back over to you. >> thank you, jackie deangelis. wells fargo announcing new salary clawbacks of $75 million from two former executives over its fake account scandal. wells fargo's chairman steven sanger joined cnbc earlier today exclusive with wilbur frost. take a look at what he had to say about why america's top banker kerry tollstead is being blamed for the scandal. >> root cause of the issue as

determined by the investigation was the excessive sales pressure in community bank, the excessive sales goals, and the failure to escalate the problem appropriately through the structure of the community bank. and kerry is a lead -- the leader of the community bank is responsible for all that. >> influential proxy adviser institutional shareholder services has been urging investors to vote against 12 of 15 wells fargo board members including the chairman, who you saw speaking right there. joining us is pat mcgirn. he's special counsel and head of strategic research and analysis at institutional shareholder services. pat, good to have you with us. >> nice to be here. >> is the conclusion here in terms of your urging shareholders to vote against 12 board members that they were somehow complicit in what was going on at the bank? >> we're still absorbing the report right now. we don't anticipate making any changes in our recommendations vis-a-vis the board. we were looking here at risk oversight. i think. and in particular the role of the board before, during, and

after the various again issues came to the forefront. so when we look at what's in the report i think it underlines what jim miller and our team in rockville said in the analysis, which is it was a shared effort by the board in really failing to provide meaningful risk oversight. >> at the same time what the report found -- this is a quote from the report. throughout 2015 and 2016 the board was regularly engaged on the issue. however, management reports do not accurately convey the scope of the problem. could it be that the board simply was not given full information? there's only so much you can do if information is false or it's not full. >> that's correct. but ultimately the board has to be accountable for things that happen on its watch. and if you look at the dispersion of risk oversight by the awed committee, there were failures in all those records. and even if they weren't being given the best information by

senior management i think it was a sign they probably had to dig a little bit deeper, especially as more and more press reports and other things came out. >> all right. so you say still vote against them because they blew it and you're not convinced that they would actually be able to do better in the future. what about how much money they clawed back? do you take any position on that? enough? should they have taken more? >> i think they've done a pretty good job in the aftermath. i think this board's failure was really before in not putting a meaningful sort of corporatewide risk management structure in place. and frankly dribbling information out to the investment community once the problems came to light. i think what they've done in the aftermath including the acts announced today have actually been a good move. would shareholders like to see more? i think shareholders would always like to get more of their money back. >> why the 12 you've identified and not the others? >> well, there's two new directors who really we can't hold accountable. and i think tim sloan -- and i think the report backs it up. has earned at least an opportunity to run the company

going forward. there is certainly no smoking gun in the report regarding tim. so i think this is really -- looking for the board to have some introspection here. and the board needs to go out and engage with investors to determine what the confidence is amongst their shareholders and act accordingly to reconstitute the board. >> do they all come up for re-election this year? >> yes, they do. >> pat, thank you. >> thank you. >> pat mcgurn of iss. make sure to catch wells fargo cnn tim sloan on "closing bell" today at 4:00 p.m. tesla is now worth more as a company than either general motors or ford. will tesla continue to zoom past its rivals in terms of value? "trading nation" is next. and baseball history comes alive on "power lunch." uniforms worn in games by some of the greatest of the greats during the biggest moments in baseball history. how much are these uniforms worth? these are the real thing. and they're made out of wool. not that breathable fabric. we'll be right back. l be right .

i'm phil lebeau with breaking news regarding the airline industry and the federal communications commission. the chairman ajit pai has basically announced he's ending any consideration of allowing

cell phone calls on flights, essentially saying "i stand with airline pilots, flight attendants and america's flying public against if the fcc's ill-conceived 2013 plan to allow people to make cell phone calls on planes. i do not believe moving forward with this plan is in the public interest." so they are tabling it permanently. and guys, i think a lot of people who fly a lot who were not looking forward to the possibility of somebody yammering away on a cell phone are all going to applaud this move by the fcc to take off any discussion about removing the ban on cell phone calls in flights. >> but what if you were one of the ones who wanted to yammer? she asked. >> you? never, michelle. >> really. what a shock. >> yeah. thanks, phil. >> let's get to leslie picker for market flash. whole foods on the move. >> hey, guys. jana partners has taken a 9% stake in whole foods. this is according to reporting in the "wall street journal" today. this makes them the second

largest shareholder in whole foods. now, jana wants the chain to improve its technology to better compete with its larger rivals. it also wants whole foods to shake up its board and to find out how much a potential bidder would be willing to pay for the company. now, all of that is according to "wall street journal," we have reached out to sources to try to confirm ourselves. and we'll get back to you guys with more. >> the stock on the move by almost 8%. thanks so much. now to kayla tell chi. >> the daily briefing by press secretary sean spicer just ended. the bulk it regarding the white house approach to syria. but there were some notable headlines about tax reform, about how the president is approaching it and whether they're going to be able to meet august deadline that treasury secretary steve mnuchin previously laid out. here's what sean spicer said. >> what you're seeing is us going through this process of his economic team.

everyone from secretary mnuchin, secretary ross, to gary cohn, and others sitting down internally and beginning that process of meeting with groups that have been advocating for tax reform. obviously, that still would be a great opportunity before they leave for august recess. but we're going to make sure we do this right. >> that would still be a great opportunity to have it done by august. well, as for an associated press report saying that president trump had scrapped his campaign tax plan and has started from scratch on tax reform, spicer said that wasn't accurate, that he still has a backbone of a plan but then went on to say what you just heard about wanting to solicit ideas from other outside interests. he was asked specifically this time next year when americans are submitting their tax returns will they have a lower tax rate? will they see a tax cut? and he said that his hope is that they will. guys? >> all right, kayla thank you. kayla tauschi from the white house. tesla shares surging to a high

today. following a upgrade from piper jaffray. is there still time to buy? eddie alfenbeene. ari wal is a technical adviser with oppenheimer. eddie, i'll start with you. read youing through this note it's a very interesting note and some might argue piper was a little late in upgrading this stock which has been an outperformer to an overweight today. but essentially they say investors will need to employ a creative valuation methodology, they don't have much confidence in some of their revenues and earnings. and yet they're willing to put this price target on the stock. where do you stand on tesla and the value of it? >> i think it was a pretty silly note from piper jaffray today. you can't put any valuation on that. you try to put any numbers, any conventional metric, it simply doesn't work. that's not what the company is about. this is a company -- i mean, it's ironic that an electric car company has perfected the bandwagon. they think they can do no wrong.

elon musk can pretty much get away with anything. this is a stock that people should have in their portfolio. not a large amount. a very small modest amount. and expect it to be a very, very bumpy stock. but this is a stock that has defied everything that wall street has thrown at it. and it just doesn't fit any conventional models. i think the analysts wanted to upgrade it so it could save it for its clients. and job well done. >> the analyst even says even if the model 3 launch goes badly customers and shareholders will withhold judgments. a big amount of goodwill. >> exactly right. >> area in terms of the chart, how does tesla's chart look? >> tesla is in a value stock. it's in a momentum stock. and the rules of momentum investing is to make sure you have big winners, let your winners run to offset the smaller losses. the chart suggests that tesla does go higher. if you look at the long-term chart, the long-term monthly going back to 2013, shares

recently broke out of this important three-year range. so at a level that previously brought in sellers there's now this indication of new demand. this breakout level at $290, that should now be viewed as a support level. we think that's the new floor. and this new demand, we think this is marking a resumption of the longer-term strength. it does argue for higher prices with tesla. stick with it. momentum stock here. >> just to underscore, that 290 is the new floor you see now for the stock? >> 290 is the floor. and if you take the height of the range that it had been in and you project it from that breakout mark, it's about $110, it would project over the long run. it's not going to get here imminently. but over the next 12 to 18 months we think this could be a $400 stock. that's where the projection would take us. >> all right. got it, guys, thank you. ari wald and eddie elfenbein. for more market insights go to tradingnation.cnbc.com. tyler.

>> thank you very much. tom brady got his jersey back, the one he wore during the super bowl earlier this year, now on display at gillette stadium. the one he wore at this year's super bowl, brady still has that one. this was from the prior year's one. he wore it at fenway park. both jerseys stolen and eventually re-covered in mexico np our next guest knows all about the value of game-worn uniforms. he started collecting baseball uniforms as a young fan and now features photographs and stories about his favorite players and uniforms in his book. "game worn: baseball treasures from the game's greatest heroes and moments" published by smithsonian. stephen wong joins us in the studio and brought some jerseys with him. these are really old treasures. this the oldest one. tell me about it. john mcgraw, manager of the yankees. it's bigger than i would have thought. >> manager of the giants. >> manager of the giants. excuse me. >> one of the greatest managers in baseball history. he wore this full uniform, which was his only uniform, in the 1913-1914 world tour. >> these are surprisingly heavy.

they are wool. >> yeah. stitched fabric. >> and engrafd and stitched with the guy's name. >> yes. >> this one here is particularly noteworthy because? >> it's the only surviving uniform that was worn in the 1919 world series, which was obviously made famous because the chicago white sox threw the world series to the cincinnati reds. >> and that's the program -- >> that's the program from game 1 and the ticket to game 1. this was worn by hall of famer urban red faber -- >> how do you acquire these? do you go to private collections and buy them? i'm sure these are tens if not hundreds of thousands of dollars. >> a lot of these have been buried in collections for a long time. so typically when an estate has a sale or the ball player had saved it from his playing days. or auction. >> some come up at auction pb. >> yeah. >> this is a joe dimaggio jersey. i never knew this. this is his rookie year jersey and tell me why it is so special beyond that. >> beyond that in 1936, which was his rookie year, he wore number 9. >> not number 5. >> not number 5. he started wearing number 5 in 1937. but he wore this the first full

season in the majors as well as in the 1936 world series. and we have a ticket and program from that series. >> roy campanella's jersey from when? >> 1950. this is his home jersey he wore at ebbets field during the 1950 season. this is a scorecard from opening day ebbets field 1947, which was jackie robinson's major league debut. >> and this photograph -- >> and this photograph -- >> four african-american players in the all-star game. >> in the all-star game. roy campanella, larry doby, don newcombe, and jackie robinson. >> let me ask you a couple questions. obviously, these are really priceless items. how do you assure the provenance of an item that you buy? >> first of all, in any acquisition you have to do your own research. but beyond that there is an authentication process run by miers authentication based out of milwaukee, wes which is. they are a third-party authentication house. very professional. been doing this for many, many

decades. dave groeb, who happens to be the co-author of my book, is the foremost authenticator in the world and -- >> so you need to know and go through that. >> yeah. >> let's talk about -- these are so special because not only were they great players or have historical significance as this one does as part of the black sox scandal, players didn't get a lot of jerseys and uniforms. >> no. they were consumerable business expenses, tyler. they were not meant to be saved like scorecards, tickets, or baseball cards. those are souvenir items we save -- >> so they might have gotten what, two uniforms a year? >> they had two homes typically and two roads for the entire season. >> and i'm guessing that today's baseball players are getting a new jersey practically every night. >> it's a whole new ball game today. >> and selling them out on the open market. so today's items aren't worth any -- you might like to have it in your house. it would be very, very nice. >> generally, when you get to the 1990s and beyond there's no scarcity value. >> at all. >> at all. >> so don't buy it as a

collectible in those cases. >> don't buy it as an investment or a collection building. but each to their own. >> buy it because you love it. >> buy it because you love it primarily. but if you really want to establish a rare collection you've got to go -- >> obviously if you were buying, say, derek jeter's jersey you that knew was the one he wore in his last game, that might have some scarcity value. >> of course. that has significance. >> stephen, thank you so much. >> tyler, nice to be with you. >> the book is a wonderful thing. my father-in-law's going to get it. michelle. >> looks good, guys. when you hear the name shinola you probably think of the shoe polish and also maybe a crude insult. however there's a company called shinola that makes luxury goods and they do it in america. if you don't know about shinola stick around, their ceo is next. >> now the latest from traysingnation.cnbc.com and a word from our sponsor. >> sometimes when the market is trending down the best thing a

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shinola, a luxury retailer fostering a small manufacturing renaissance in middle america, and they just launched a new national campaign celebrating the american worker and work ethic. joining us now is the ceo of shinola. good to have you here. >> great to be here, michelle, thanks. >> showing the viewers the ads as we talk. why are you launching this campaign? >> well, you know, for us, it's more about the articulation of a movement than it is about a marketing campaign. we're really celebrating the american work er, hard work, an maker culture, rolling up the sleeves and getting things done. >> talking about manufacturing and bringing back manufacturing jobs to the united states, inevitably people say, you know what? they are not going to be real human jobs but robots who do the jobs. what do you say to those people? >> i tell them to come to

detroit. hundreds of men and women that i get a chance to work with every day who are building amazing watches, leather goods here in detroit, and folks who just a few short years ago were doing things from being part-time security guards to working at fast food places, and now they are building some tremendously high quality world class time pieces and leather goods right here in detroit, and they are anything but robots, i can assure you of that. >> people argue they are folks what do not have the skill set when it comes to, for example, advanced sewing, like, when you have high end luxury, you can't find people here in the united states. are you having -- do you have to do a lot of retraining or training period? >> i'm not going to sit here and say it's easy, but i can tell you it's possible. we have some talented and and women who lack nothing but opportunity. given the opportunity and training, we've seen they can produce world class goods, and you have people that are maybe

not sewen leather bags, but car seats here in detroit. people who built watches, but involved in the manufacturing of other goods. folks even not involved, have the aptitude. they just need the opportunity. >> this has been part of a company's ethos since founded, tom, but is it helpful this is sort of the movement that is take i taking police in the united states now in terms of manufacturing and jobs here in america? >> we sure hope so. for us, it's just been one day at a time, june job at a time, working hard every day to try to build our company, and hopefully set a small example for those who desired same thing. it's nod easy. but it's worthwhile. >> you like the boarder adjustment tax idea? >> for us, it's less about what policies are in washington, d.c. or our state of michigan and capital of lancing, and more about finding ways to do with whatever rules are out there an

getting a chance to create jobs along the way. >> that's a little bit of a cop out, isn't it? ultimately would help if regulations were more favorable, right? >> we're in favor of creating domestic jobs, but for us, the rules were different in 201 is 1 when he started than they might be tomorrow, and for us, we can't -- there's so much work for us to do that we can't worry about washington and what policy people are coming up with. >> hit the ball they throw you. >> appreciate it. >> tom with shinola. >> the world cup in america. phones on planes. check please is next. k please i. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation.

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to power global e-commerce fedex networks are massive, far-reaching and, yes... a little magical. fedex.com slash dream check please. >> the united states, mexico, and canada announcing a joint bid to host the 2026 world cup, that's soccer, u.s. would host 60 games, mexico and canada with ten each, and the environment where we're talking about building a walls and breaking up naf nafta, joint bid for all of the north american bid for -- >> love it. i love it. i love it. i think it'll be great. >> meantime, a story brought to us earlier, fcc dropped a proposal to allow cell phones own planes. much to the dismay of michelle, but to the relief of other people flying public who want to -- >> i just like to overhear.

i just like to -- >> my life. >> this will be front page in newspapers tomorrow, i think. >> this is the water cooler story of the day. >> yes. >> this and the united guy pulled off the plane. >> right. >> oh, yeah. all right, thanks for watching "power lunch", and "closing bell" starts right now. ♪ hi, everybody, beautiful monday in new york city. welcome to "closing bell." >> a tax reform may tack longer than as expected. a new report says the trump administration is starting new tax plan from scratch. we have details and your heard sean spicer say they hope to have it in place by next year at this time. >> all right. >> we'll see. >> tesla sur passing general motors as the largest auto maker by market cap. they are going back and forth. tesla up 3.3% w.