supposed. these regulations shrine too big to fail and encourage risky behavior. we're taking steps to make our economy more fair and prosperous for all. as part of our broader financial strategy, we're working to open up lending to small businesses and entrepreneurs including our incredible women entrepreneurs who are doing better and better and better. we want opportunity for everyone and in every single part of our country. secretary mnuchin and the entire administration work around the clock to help struggling americans achieve their financial dreams. earn a great paycheck, have a job they love going to every single day, and have real confidence in the future. together, we will restore prosperity to the nation, a nation we so dearly love, and to bring people who call this home

into a great, great way of living and a great way of life. they are going to be thrilled. we're going to be thrilled. you're going to be seeing some very, very major changes. you've already seen them, i don't know if anybody's looked recently, but you look at optimism indexes that are just coming out, manufacturing in particular, where it's up to the highest point it's ever been, 93%. it was at 27% increase over the past, over the last one, so i just want to thank everybody for being here. this is such a privilege for me to sign. this is really the beginning of a whole new way of life that this country hasn't seen in really many, many years. i want to thank you. i want to god bless america. thank you, thank you everybody.

p. identifying and reducing tax regulatory burdens. that covers a lot of territory. believe me. >> senator, how about you get the first one. can you handle that? okay. even better. >> thank you so much. >> thank you. this is the subject of financial

stability, the oversight counsel. very important. >> this is orderly liquidation authority. doesn't sound like much, but it is. that's a big one. it doesn't sound big, but it is. >> financial services. >> that's right.

we'll be having a big announcemeannounce me wednesday having to do with tax reform. the process has begun long ago, but formally begins on wednesday, so go to it. >> i will, mr. president. >> thank you very much, everybody. thank you. >> thank you. >> and the president there signing those executive orders regarding financial regulation and tax simplification. we welcome you to "closing bell" friday, i'm bill griffeth with sue hererra here at the new york stock exchain. >> yes. >> a busy day for the president and mixed signals on tax reforming. we are at the white house with the details for us here. straight p en it out for us. >> reporter: you saw the papers he was signing. this is what he sign there and what it really does. so we understand that, and then we'll go to the issue of tax reform. the president there signing an

executive order, first as executive order reviewing tax regulatory burdens. basically, they are going back and looking at things that the president signed in 2016, that's president obama regulatory initiatives on tax and what they want to repeal there. the second was a presidential memo, review of the orderly liquidation authority, at the heart of dodd-frank, whether it's a good idea or encourages banks to be too big to fail, and the third is an assessment of the financial stability designation process, a lot of something the large financial institutions have not liked. they felt it's arbitrary, unfair, and can tag them unfairly. in terms of tax regulatory burdens, the treasury secretary was asked earlier today whether or not tax inversion legislation or initiatives that were passed by the obama administration was really the target of all this. what mnuchin said, yes, in effect, the tax inversion actions that the obama administration took are now under review. he said it's not targeted at

just those, but it's targeted at things that are significant and create complexity and undo burdensome situations. he said, though, that the tax inversionings would be something this administration would be looking at. now, as to the president's announcement on tax reform, he talk to the associated press. here's what he told the associated press just earlier this afternoon. he said he would not provide detail of the plans, saying tax cuts are better, i believe, than any tax cut ever. the president said the package will be released wednesday or shortly this afternoon, and that would make it just before his 100 day mark in office. now, there's some question about what exactly is in that, and i immediately went into the west wing to ask officials what specifics can they give us on what's in the president's proposal next week, and they are not talking as of right now about what exactly they are going to do. the president signaling, though, it's going to be a massive tax cut proposing at some point next week, bill? >> i have a quick question for you. in terms of the democratic

response to that tax package, there's been a lot of speculation that the republicans and the administration are going to put out their some issues with the border wall and other things that the democrats are not going it buy. how is he going to play that? how is the administration going to negotiate around the issues? >> two tracks to think about next week, a very big week here in washington next week because of the government shutdown deadline april 29th, baerear in mind, and the question is whether or not the administration is going to hold fast to the idea that border wall financing has to be in that package. whether or not there's a government shut down next week. that's going to be serious horse trading, talking about adding this tax bill proposal to next week's agenda as well. what specifically is going to be in there? we don't necessarily know. one of the things that i think i can sort of give you a sense of is that it feels like the idea of border adjustment tax is dead here in washington. something that speaker paul ryan floated earlier in the year.

did not get traction or go anywhe anywhere. i would not expect it in the proposal next week, but we don't know. on top of all that, you got the white house now pushing for a review of the health care decision from awhile back here in washington, and they would like to pass something on health care. they say they have the senate budget committee working on scouring language to ensure it complies with the bird rule here in washington to ensure that the deal could be teed up next week if they have the votes to pass that. so three monster things on i agenda for washington next week. a lot to watch. >> and that's why you are where you why are. >> i was just going to say that. >> appreciate it. thank you. we'll talk to you next hour as well. all right. federal reserve vice chairman stanley fisher speaks exclusively with our sarah ei e eisen. perfect timing here sara. >> that's right. we got the completely opposite

message from vice chairman fischer of the fed. trump said they are damaging, but this bank regulator says, in fact, it could be damaging and dangerous, was his word, to actually roll them back. listen. >> we seem to have forgotten that we had a financial crisis which was caused by behavior in the banking and other parts of the financial system. it did enormous damage to the economy. millions of people lost their jobs. millions of people lost their houses. taiking actions which remove the changes that were made to strengthen the structure of the financial system is very dangerous. >> now, as for the economy, fischer made news there as well saying that two interest rate hikes still seem appropriate when it comes to the remaining 2017 forecast. no, they are not tied to it.

the weakness in q1 in the economy, he expects it to be, quote, transitory, fed speak for temporary, and for the economy to bounce back as it has in recent years. now, we also talked a little bit about the markets. we talked about france. i asked him whether that reported warning about the markets should be terrifying to central bankers, said he was watching it carefully, but not terrifying. as for fed policy, we talked about balance sheet normalization, said it was a discussion to happen in the next few meetings, guys, and that it would impact the economy, that we should think about it as tight ping of monetary conditions when it actually does get going. >> all right. sara, very good. thank you. have aed fwoo weekend. >> thank you. >> sara eisen. >> let's talk more about the comments, investing legend reveals thoughts on the current market valuation in a closed door meeting with goldman sachs a bit earlier this month.

tudor jones said the market relative to the nation's economy should be, quote, as sara mentioned, terrifying to central bankers including janet yellen. well, is he just the latest investor who thinks the market is overvalued? look at the others. they include blackrock's larry fink, value act jeffrey, double line capital, omega adviser, and vanguard. >> so let's kick that around. is the market too expensive now? joining the closing bell exchange for friday, kevin nickelson is with us, and john from meridian is here, and rick santelli in chicago. kevin, it's fair valued? do you agree with the investing legends that maybe the market is too expensive? >> no, i don't. i actually believe it's fair value when you look at -- take the rule of 20, for instance. right now, the s&p is trading

roughly about 18 times forward earnings, and if you add about 2% inflation to get you to 20. i mean, so it's really looking like it's fair value, and based upon our work we've done here at river front when we look at the long term trend and you look at the s&p's total return and its real turn, app newnnualizes at . right now, you are slightly above that as far as being over the trend line. they argue our work says that, you know, the market is fair value. >> you know, i think it's worth noting that mr. tudor jones has nots had a good year, and, as a matter of fact, several of the people who are saying this market is overvalued have had really tough sledding in this market. and if you look at the metrics that basically kevin just mentioned, how do you view the market? fairly valued, overvalued? >> well, you know, i think mr. jones had a legendary career, so just looking back on -- >> oh, absolutely. >> but, you know, as the market continues to trade higher and

higher, we said it's overvalued for the last 500 s&p points as investors continue to come into the market. economic data is better, got through an election, many earnings cycles, yet the money on the sidelines continues to trickle into the market, and we move high african-americnd high. at some point, we'll get to a level where investors feel like this is way too lofty and might be a little too big to fail as far as this market is concerned, but right now, there's been nothing that's been able to stand in the way of the market, whether it's been a geopolitical headline, terrorist headlines. look at the headlines over the last two weeks. the market continues to trend higher. i think overall, yes, the market is overvalued, but i have not found that one catalyst that's going to turn this market on a dime. >> and, rick, i know you -- we've talked with you about this a lot recently. the resilience of the equity market in the face, for example, the safety trade off the last couple days here with the ten

year yield rising, gold down, and so forth. i don't know. do you want to venture into this idea whether or not equity market is overvalued from a historical perspective? >> i would love to. as a matter of fact, yes, paul tudor jones is a ledge. in the late '70, i processed his cotton future orders and routed them to new york. a legend. central bangers should be petrified. that was the jigist of what he said. he's right, but wrong. we should be pets try mied of central bankers. this is why. you know, i said, bill, unless you know why a market moves, any other discussion about whether it's fair value, rich, cheap is a mute point, okay? research done by michael hartnet i read yet from bank of america. this is at the end internet of all of these discussions, and i think stan fischer has to think about it as well talking about improvement in china and europe.

year to date, central bankers, remember, our central bank is tightening. year to date, central bankers purchased $1 trillion of financial assets, annualized, that's $3.6 trillion. that's the biggest pace in terms of central banker purchases. now, no matter how you slice it, i believe the ax yum that all stimulus is fundable. why are markets where they are at? >> kevin, respond to that, because i take -- i take rick's point to a certain extent, but on the other hand, as point r pointed out, this market seems to be able -- it's a tough lawn market. if terrorism is not going to do it, and, yes, the u.s. bank has been tightening, but we've been waiting for the u.s. bank to start to do this for so long. >> yes, i mean, look at valuations, and, remember, he was talking about relative -- the market relative to gdp.

well, we also took a look at gross domestic income, and if you think about -- if you stop and think about it, gross domestic income and product should be very close to one another. however, gross domestic income is running higher, so my argument is that gdp may be being a little low, and that it's been suppressed, and maybe we're not calculating it right. >> gentlemen, i'd love to continue the discussion, but the president's signing ceremony started us late. we have to move on. thank you all three of you. have a good weekend. see you later. >> you bet. >> headed to the close, 44 minutes left in the trading session, dow down 16 points. not a very broad day in terms of volatility. i think the market really waiting for the french elections which we'll talk about in a while here. >> we will. we'll talk about general electric, is it dead money? the stock is one of this year's biggest losers in the dow. today's earnings did beat, but

they are not providing a boost. two analysts debate ge's potential coming up. this week's presidential election in france could set wheels in motion for frexit. the best and worst case scenarios and impact on the dollar coming up. hey, you're watching cnbc, first in bids worldwide. it's your tv, take it with you. with directv now and at&t, get the ultimate in entertainment plus unlimited data. get directv now for $10 a month when you have the new at&t unlimited plus plan.

m zplmplts this boosts the foot print of 173 stations, 81 markets, nearing the purchase of tribune media. there's a lot of consolidation in online broadcasting these days. >> sure is. we hang on every economic report, right? >> yes. >> well, two weeks from today, the department of labor releases the monthly jobs report. >> write it down. >> mark the calendars, as it has since 1919 , but the report may not see its 100th birthday.

say it's not so, steve. >> maybe not on time. what if the jobs number did not come out? former commissioner for the bureau of labor statistics warning this morning that it's a real possibility because what she expects to be drastic budget cuts from the trump administration at her former agency. >> the bls has to collect a huge amount of information from a huge amount of respondents, business, and families, and turn those into a jobs report that comes out basically the whole thing is done in less than two weeks. these days, the bls is under funded. how does an agency still continue to produce all of the things it needs to do? >> president trump proposed what's called a skinny budget, lite on spending, calling for a 21% cut in the labor department budget, bringing it down to 9.6 billion, promising a series of broad cuts and even eliminating what it calls ineffective programs. the budget is also skinny on

details. we do not have data on funding for the bls. it's the second biggest agency in labor produced with the job reports, inflation reports, another piece of key market moving data, thinks it's subject to big cuts. it was the victim of the government shutdown in 2013, and bls funding has taken hits from the sequester. here's the problem. the data has no friends in congress. so if the street wants insists on keep keeping it, they have to speak up. i have to say it's great to see the fantastic team of bill two back together again. >> yes, we've been hearing on twitter as well from all -- >> have we? >> all the friends as well. >> well, it's an honor to fill in for kelly. >> back together again here. >> where's the sweater vest? >> thanks, steve. i don't buy it, but we don't have time to talk about it right now. >> to be continued. >> see you later. all right, we are more than half hour before the closing bell, and right now, the dow is down about 14 points, s&p's

marginally lower as well. >> more pain in retail, yet another clothing chain shutting down all locations. details just ahead. >> macy's ceo giving cnbc the first interview since taking over the the plan to get customers in stores coming up. the road can change in an instant. but with lightning fast shifts and dynamic track-tuned suspension,

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guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. macy's executive chairman tells us that a merger or acquisition could eventually be on the table for that retail

giant. joining us from the sidelines at the global retailing conference in scenic arizona where sunrises are awesome, huh, courtney? >> that's right. i'm here in arizona, a gorgeous day, and teri lundgren, sat down with us to start this day and said while he's only be a part of two deals in his 14-years as ceo of macy's, he didn't take the idea off the table for the future. future is now in the hands of macy's ceo, and handed over the reigns a month ago and he sat down with us in the first tv interview as ceo to talk about the plans for macy's future. >> the notion of a store and the experience you put into it is different today and will be different in the future than the way it's been in the past, and so we're working on the next generation of stores, expermitting with that, looking at smaller doors, massively reduced added assortments, more

fashion is in, adding experiences like food eaters into the stores, looking at the role of service, where does service play in a store today? >> reporter: 10% of macy's shoppers make up 50% of its sales. so they have work to do to find shoppers, but perhaps a small share could be pick up from retailers closing all doors. today, bebe is closing all 175 stores weeks after saying it was closiing only 12% all in effort to stave off a bankruptcy filing. no word if it will continue to run the e-commerce site. if you added those closures, we have more than 3,000 store closures announced this year. double than what we saw at the same point last year, and compare that to 2008 and we are still on track to see a much,

much higher rate. credit swisse, estimated 8600 store closures by year end at this rate. it's not detouring any of the retailing students here at the university of arizona in the school of retailing. they are optimistic about the future of retail and their careers in it. they said just because retails is going through shifts, doesn't mean it's doomed. back to you, bill, sue? >> all right, courtney, thank you. good to know they are optimistic on the future. appreciate it p. this feels weird, but time now for a cnbc news update, but this time with contessa. >> i was going to does if felt like worlds collided. here's what's happening now. the man accused of going on last week's racially motivated shooting rampage in fresno faced the judge today. 39-year-old is accused of killing three people. the judge ordered him to undergo mental evaluation and bail is set at about $2 million.

a massachusetts judge issued an order today to preserve evidence in aaron hernandez's prison suicide. the former nfl star's familiments an investigation into the circumstances of the death. hernandez was serving a life term for a 2013 killing. wednesday, he was found hanging in his cell. >> working to get electricity restored in san francisco within the next half hour or so after a substation fire knocked out power to 95,000 customers. that happened shortly after 9:00 a.m. local time. and barack obama's post-presidential vacation is winding down. he'll hold first public event since wrapping up eight years in office speaking at a town hall style event with university of chicago students on monday, and that is the cnbc news update at this hour. bill, i don't know, i mean, makes me nervous to do this with sue right there assessing my progress and performance. >> but she does not judge. >> never.

>> she's not a judgmental person. rest easy. >> great, thank you. >> see you next hour. 30 minutes left for the close and week as well. dow down 12 points, allen from silver bear capital is here on the floor of the new york stock exchange. review. down, price of oil down, below $50 a barrel. that should be negative. positive talk about tax reform, that should be positive. the dow's sitting there. it's clear that the markets focusing on those elections in france on sunday, don't you think? >> no question about it. even the volume. the volume over 500 million, knowing that was in the first hour here sometimes, you know, looking at the charts, february 17th, we have not moved the needle one way or another, just trading sideways. that said, earnings have been good. we have a hundred reporting already, 77 beat earnings estimates, 67% beat on sales, which is good. bill, what's interesting. look around the world, almost all the markets are up 4% or more. >> right, right. >> even france with the election

is up over 4%. >> now, you know, you can get into the dangerous territory here, but handicapping what the market response might be on monday, we know what happened after brexit. we know what happened after the u.s. election. could we see something big volatility monday, do you think? >> i think you could see volatility. how big? i don't know. whatever takes place takes place. this is the first round, second round in june -- >> might get a sense of how it goes after this. >> exactly. even say, they call her the worst case se nacenarscenario, s in, leaves the euro, that'll take years, not happening overnight. it's going to be awhile, b interesting to see what happens. >> thank you. sue? >> bill, breaking news on replacing obamacare. we are joined now from washington with the president making comments. >> yes, sue, that's right. the president talked to reporters here in the pool after the event at the treasury department. the president said he'd like to get health care done, but he does not necessarily feel like

it's next week which contrasts with the sense of urgency heard on health care reform from the white house indicating they'd like very much to do it before the 100 day marker next week, if they can, and i believe that we have some tape cued up with the president moments ago. go ahead and play that and we'll talk about it on the other side. here it is. >> it'll happen. we'll see what happens. no particular rush, but we'll see what happens. health care's coming along well. government is coming along really well. a lot of good things are happening. thank you, folks. doesn't matter if it's next week. next week doesn't matter. >> dodd-frank -- >> we're doing very well on dodd frank, believe me. thank you. >> so i can tell you there is a big push going on here at the white house to get something done on health care by next week, in fact, the senate budget committee is working on making sure that language is being considered right now up on

capitol hill, squares with what's known as the bird rule. they hope in the white house to have that done by tonight or tomorrow, which would sort of clear the decks for legislation next week if they get the vote count where they. it to be. i'm told by a source on capitol hill that timing is not necessarily certain or clear that the senate budget committee could finish the work in terms of what they call the bird wash by tonight or tomorrow, is a little bit of conflicting messaging there, and just to underscore what the president said there in terms of optimism looking ahead to next week, it is a very, very big week next week, avert a government shut dou shutdown, do something with obamacare, repeal and replace, failed once, they want that revived next week, and now the president gave a hard deadline of wednesday for tax reform in remarks at the treasury department. that's a lot for any white house to break off in a week, but they'll try here in washington next week, guys. >> we'll see. thank you. >> oh, brother. trying to keep track of all the

sound bites. amazing what's going on. >> it is amazing. >> thank you. >> how do interpret them, right? >> exactly. >> all right. we're getting closer to the closing bell, and right now, the dow jones industrial average just lower by a little bit, i think you're right, everybody's waiting for those french elections. >> in fact, when we come back, how the weekend's election in france could move the euro and others. ge is the worth performing stock over the dow over the last ten years, is ge dead money these days? both sides of that debate coming up. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams...

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the front runners campaign against the currency, and the first roubd of vond of voting t place sunday. >> it does indeed. joining us now is the managing director of fx strategy at bk management, and chief currency strategist is with us, welcome,

gentlemye gentlemen, nice to have you here. boris, starting with you, polls show it's a neck and neck race, but they also show an enormous amount of population is undecided. how does that play out in the currency markets? >> exactly why it's a complete wild card. it's not just effectively a four-way race, everybody's essentially at 20%, 40% of the population has not decided how are they going to vote coming into sunday, so it's very much an open race. i think at this point, trying to handicap it is a fool's errand. we'll have to see. the absolute critical number i think the market that would be spooked is 30% or higher. that number in round would for le pen creates more turbulence than anything else. >> that calls into question the future of the euro, going that strong for le pen, other countries watch carefully, not the least would be italy. what do you think? >> yeah. i think it's the big charge for the euro here, at least in the

short run. they favor volatility monday morning regard less of the outcome, but, bill, it's not just france. we have elections in germany and next year or so at least significant election, maybe more than significant than france in italy. it's a hurdle with more coming this year. >> so, look out a little bit further. past the french elections and, of course, mentioning the other elections coming up, the big question for a lot of people is is this the inflection point for the euro? and for the european union? if we look out two, three years from now, will we talk about an e.u.? talking about a euro? or no? >> that's the big unknown. that's why everybody's on pens and needles now. ultimately, you're in a situation in france where 40% of theopulation, far right and left want candidates not wanting to be in the euro. italy is next up. there's a tremendous amount of

resistance against the euro there as well. key question is, can they hold it together at this point? can the union come together and create a more viable economic society for the rest of the european union at this point? that's going to be the very, very pomimportant question. it's not that if she win, but it's a question how big the vote is and how much is affects the rest of the vote. >> brexit negotiations begin after the june 8th vote in great britain. what happens to the euro in the meantime? do you see it going higher, lower? what's happening here? >> oh, i think that it'll be -- assuming we get the market friendly outcome in the first round where no one is above 50%, a runup vote, markets hope it's probably between the sen tryst, most likely le pen far right, and most of the polling shows that under that scenario, they win in the second round,

preferred outcome for the markets. under that, we can see the euro rally up to 108, possibly 109 moving average for, coming in at 108.5. that's certainly. fairly ickly, and if there's a negative surprise, extreme candidates, of course, a big number as far as others, but a runoff between the two candidates on the extremes, we see the euro under pressure quickly. then you look at the dollar running quickly to 104, 104, 105. >> we think as low as parody. >> wow. >> it's a small upside, brought to the 108 max, but any kind of serious contention that le pen or worst case scenario, the far left only choice for france takes it down very quickly. >> wow. boy, a big rally all the way

into 109. amazing. what a different world it has these days. gentlemen, thank you for joining us today. >> thank you. >> you bet. 19 minutes left in the trading session. the dow down five points. >> well, the worst performer in the dow over the last decade, ge. so is there any reason to own the stock? we'll talk about that coming up next. ♪ ♪ here's to breaking more glass ceilings. in golf and everywhere else. ♪ kpmg, continuing our commitment to the next generation of women leaders.

ge shares sagging today about 2% after reporting earnings even though the company did beat expectations on both the top and the bottom line. we should point out it is the worst performing dow component over the last ten years. the question needs to be asked, is ge dead money right now? >> right. we're going to ask that question because joining us now is brian, principle, and author of "the industrial strategist," and verly is from morning star welcome to both of you. >> thank you. >> full disclosure, cnbc used to

be owned by ge. >> we both own a couple chers in the retirement account. >> we do. >> we watch it carefully. >> we did. >> used to. >> you know what? it has been dead money for the last ten years. it's a show-me stock, but investors are waiting an awful long time, brian, to see some results. what -- what do they have to do that they have not already done? >> be patient for a while. trade it between 28 and 32. 10% order growth, 9% segment profit growth, which is fine, but in the big scheme of things, revenue's were down 1%, earnings flat, and to hit the lower end of their guidance this year, you have to have 30% enings growth in the second half. additionally, you have some head winds. first of all, the u.s. economy is not going to go into a fast growth mode. it's going through a restructuring mode. second, oil and gas, everybody's

talking optimistic about it in the industry, so is general electr electric. they have been wrong for a year and a half. >> right. >> the oil sector's trading down, and bankruptcy in the oil sector go up. they are drilling to make debt payments, not for growth. and, finally, free cash flow. industrial has to prove it can generate the free cash flow they say they can. they are not. so, sorry. not a lot to do other than stay in trading range. >> understood. barbara, you know, taking over in 2001, trying to remake the company that jack welsh built pretty much, and now that includes technology. he wants to get -- have a bigger footprint in silicon valley. does that work for you? i mean, avoid from the industrial areas, jet engines, the oil and gas, and all the other things he's in. what do you think of the role of technology? he's very high on that right now? >> yeah, absolutely. i think, you know, to your point, you know, the ge of ten years ago is certainly not the

same company you see going forward, and i think technology is definitely a part of that story. you know, it's true that, you know, we've seen some better growth come out of ge's industrial segment, and you see that today when, you know, the companies reported 7% industrial revenue growth for the quarter, which was great, and i think that even though the technology story is very nascent at the moment, in the long term, it adds an element of growth to ge's story not there a decade ago. >> very, very quickly, brian, because i have to go. >> yes? >> there are some who think he needs to turn raeigns over to fresh blood. does he need to go? >> who to? anybody that's there has been the senior management team for over a decade is part of the same mind set. sos in it's somebody from the outside, i don't see any rush. >> all right. brian, barbara, thank you both. appreciate the thoughts. >> thank you. >> thank you.

>> getting ever closing to the closing bell. right now, pairing losses, down three and a half points and s&p bettered itself. >> very much a wait and see market decade day. we are join next with an acronym of the week. for the hint, the word, listen to the music. we'll be right back. ♪ because when you really, really want to be there... but you can't. (cheering) at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready. because we're helping leading companies lead with digital. anything worth pursuing hard work and a plan. baird, we approach your wealth management strategy the same way to create a financial plan built to lt from generation to generation. we'll listen. we'll talk. we'll plan.

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welcome back, we got 90 minutes left in the trading session here, a flat market ready for the french elections sunday. joining us on the floor of the new york city stock exchange, usual weekly visit with the independent investment consul tapt. >> good to see you. >> it is fade, fade coming from an old nordic expression meaning to stagger or to thor. you've seen fading expectations for the policies that trump -- initial promise rolled out. i'm talking about deregulation. the tax area. hopefully that can get done. george bush -- sorry, reagan came in '81. >> yes. >> right. >> january '81, august 5th,

first face of the tax cuts came in. let's get speeding on this, okay. >> you're watching frill 28th, possibility of a government shut douc shutdown. >> keep the eyes on that, because that stops payments on many programs that are hooked to this continuing resolution, sue, d, is declining interest rates, bringing the dollar down, brought banks down, sue, and oil down. the e is earnings. earnings is one of the three reaso reasons i believe the market goes higher. this is a pause everybody hoped for. earnings 10% up this year, 10% up next year. secondly, the capital, global capital, all over the world, is trading the best in the world here today. interest rates. regulation. this is a place where capital, massive capital, sue, bill, keeps coming in, and thirdly, euphor euphoria.

exception of a handful of stocks, you know what they are, smart phone makers, social network companies, other than a handful, euphoria is not here. the stocks were bought over the last eight years by corporations, sue, buying back own stock. 4.7 trillion and buying other u.s. companies, 3.7 trillion while individuals were net sellers of 1.5 trillion. >> that's supporting this? correct. shakespeare's birthday and death day is sunday. if i had time, i'd give you more on that, but i wish kelly and eric a very happy wedding day tomorrow. >> we do wish her well. thank you so much, david. >> a good weekend, sue. >> you too. whoever eric is, we don't talk about that. anyway, we'll take a break and come back with the closing countdown, and after the bell, harrison ford is going back to the future with the blade runner sequel that's coming out this fall, and later, meet the futurist who designed what 20 is the looks like way back in the 1 the 982 original film.

now did he do? stay tuned. we'll find out. you're watching cnbc, first in business worldwide. flr

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week, and then we saw strength yesterday, and it was the kind of strength that pushed the nasdaq into record territory with hopes about some policy coming out of washington whether it's about tax reform or infrastructure or whatever it may be, so that's what the dow looked like. now, watch this. the ten-year yield. the pattern is similar. there was a low early in the week, and then we climbed out of that, but that was the lowest level for the ten year yield we've seen since about november around election time. wti, very tough week. especially when you fell below $50 a barrel, down 6% for the week now. they are all watching carefully to see what kind of production is coming from opec, talking about extending the production cuts, the u.s. producers still producing, and we saw yet another rise in the baker-hughs rig count this week. volatility index up, but bob, frankly, i thought it was going to go higher with the french elections coming up on sunday, but we're still sitting below 15

now. >> there is a bid underneath the market. you can feel it. you're right bill, all three market moving issues today, earnings, geopolitical, and the trump issue. honeywell is good, stanley black and decker raised guidance overall, ge affirmed it. numbers are good. first big industrials to come out. in the middle of the day, markets moved somewhat lower. a lot of people were concerned about french elections. in the middle of the day, president trump said tax cuts back on the burner. there's going to be a massive -- his term -- a program unveiled wednesday or thereafter, and the markets moved up and came off the lows on that. all three issues sort of coming to floor right now. but the market, remember, if things swing the right way in france, the market could move on the upside noticeably. we go either way on trump tax cuts, either way on the french elections, and that's why the

market never drops that much. >> yeah. >> because it goes ooert weithe. >> we'll talk about that coming up. waste management ringing the bell at the big board. boy, do we have a busy week coming up. first thing on the agenda, french elections, which we'll talk about on the second hour of "closing bell." >> welcome to the closing bell, i'm sue filling in for kelly. joining us in a couple minutes, here's the finishing of the day on wall street. a narrow trading day on the street today. as you can see a fractional percentage move on the downside, the s&p 500, and the nasdaq and russell 2,000. amazon stock, though, up 20% so far in 2017, handedly outperforming the s&p 500. it is already above $428 billion worth of market cap. is that the first company do

reach $1 trillion? we'll discuss that ahead of the earnings that come out next week. joining us on the panel today is cnbc's senior market commentary, evan, and more on today's market action, oscar emerging opportunity fund portfolio manager, jim. welcome to all of you. good to have you here. you know, mike, starting with you, the notes you had earlier, talking about the french election, the history of brexit. the history of the u.s election, and we reay do see the market held hostage by the week's events. >> held in place, if not held hostage for sure, sue. in the prior two instance, there was a buildup of anxiety, hedging, vix bill talked about, and more elevated, but, yes, people are concerned to feel, well, ere's a surprising result and surprising reaction

to a surprising result. i think that has kept things kaurks in t washington in the weekend. the market pulls itself in a neutral position ahead of the election. it's a two month range, the rally yesterday that did not break us out, and so i e feel as if it's prepared to break either way. >> i mean, you know, we got burned twice by brexit and the u.s. election, so what do you expect traders to do ahead of the election, right? >> it's funny. today felt like it's the middle of the spring, but the summer dull drums, just very, very narrow trading. there's not a lot of activity. >> wait until monday, right? >> the answer's -- it depends. i mean, if there's an interesting result out of france, there could be a lot of volatility, and if it comes in plus or minus as expected, there could be a lot of treading water as mot fear. >> jim, do you agree with that? how do you feel about the market the at these levels?

one of the don'ebatings is, wile fairly valued? how important is what's happening in europe? >> there's a lot of believability now in the interest rates. with the rates going up and interest rates tested lows and came back to 2, 3%, these levels is what you hang your hat on in terms of pes. you can start to see a pe expansion making sense if the rates stop at 275 or 3, so i'm bullish, you know, we have a lot of great earningconfirmation of that. >> yeah, what rank -- rank earnings for us, with all the her fundamentals now. >> i feel like that's part of the supportive backdrop. what we see so far, always a push-pull, have reactions, you know, relative to expectations that kind of knock socks here and there, but i think you keep the expectation in tact for high single digit or maybe 10% earnings growth for the full year, and now i think you get harder as the year goes on. point out to people, nobody realizes it, that the quarter -- third quarter of last year,

before the election, u.s. economy grew at 3.5%, and the industrial dmi fell off the bottom. you'll have tougher comparisons back half of the year. i think earnings are good enough now, though, to support the market. i also feel as if one of the lessons of the election and brexit is the market just wants the event out of the way. it is not necessarily about the specifics -- >> i think a lot of people want the event out of the way. kevin, what about washington? it was interesting. we had the president commenting on taxes. we had him comments on health care reform, and now a week ago, that would have whip sawed the market dramatically. it did not today. >> depends what pair dime you believe. mark argued for the global growth story and that's taking the market up. i believe there's a lot of headlines coming out of washington, and that's why when headlines turn bad, you have not seen positive stock market activity. i'm of the view that actual legislation is going to be very, very hard to make happen this

year, and so you'll get -- that's why today the market did not react that much to, you knowing trump saying, oh, we're going to have tax reform, the biggest tax cut ever. the market moved a little. it did not move a lot. i think the market right now is discounting the words it wants to see actual actions. >> let's get the back story in that and the action we saw in washington today with the president making those comments on tax reform as washington faces a stalemate over funding the government. that does line's next friday. we are at the white house, ylan follows the threat of a government shutdown, and she's -- must be sanding next to him there. let's start with -- you first. >> yeah. that's right, ylan and i are not far away from each other here on the north lawn of the white house, bill, and i can tell you there's a little bit of a scramble going on in this building behind me. a lot of aids trying to figure out exactly which pieces of the puzzle are coming at which point next week. there's a lot of moving pieces here. the president surprised a number of folks saying the tax bill is going to be unveiled on

wednesday. period, hard stop. some aides suggested wednesday or thereafter. here's what the president said. >> we'll be having a big anoupgsment on wednesday having to do with tax reform. the process has begun long ago, but it really formally begins wednesday. go to it. >> when you get the mixed message between aids and the president of the united states, my experience in the white house is go with the president of the united states. expect to unveil something on wednesday, meanwhile. the president conducted a signing ceremony at the treasury department. the first visit across the street here in washington in which he signed an executive order and two presidential men ren dumbs of interest on folks on wall street. executive order was a review of 2016 tax regulatory burdens, reviewing those to make changes, and also a memorandum looking at

the orderly liquidation authority provision of the dodd-frank act, the provision that allows them to wind down a bank in major trouble, and then also an assessment of the financial stability oversight, the fsocs designation process and risks around that. that's something wall street had interest in as well. guys, three major pieces of legislation contemplated between now and next week. now, the president is still talking about health care and maybe getting a deal on that next week. they got to do something to avert a government shut down by the deadline end of next week, and now the president said tax reform begins wednesday. guys? >> all right. eamon, talk more about the government shutdown because we are about a week away from a potential government shutdown. ylan has the latest on the moves taking place in washington to try to keep the government running. >> reporter: hi, sue. well, the president said has he was leaving the treasury

department that goernegotiation over funding are going, quote, really well, after tough talk over what the administration wants to see in any spending deal. that includes money for border walls and temperatured up enforce. two things that democrats said are a poison pill in any deal. >> this is the first real test of whether or not the democrats specifically in the senate are interested in negotiating. interested in a compromise. >> reporter: deadline is april 28th, but aids say it's certain lawmakers push back the deadline by a week. there's been a lot of cyber rattling in 24 hours here in washington. the spokesperson for chuck schumer put out a statement saying that if the administration would drop its 11th hour demand for a border wall, congressional leaders could quickly come to a deal. now, omb director muvaney is scheduled to meet with the

president at the white house. we'll see what line they take when next week arrives. >> calling the border wall a poison bill in the bill there. thank you very much. jim, you have to put money to work with this. is all that's coming from washington just white noise to you right now? does that affect mow you work money here? >> very positive white noise in terms of lowering regulation, allow allowing, keeping up with great ideas, letting them run, there's huge capital spending cycle in the on the kl industry, capacity laid for more and more technology and sass and in the cloud, you have a lot of investment going on there, and that needs to keep ongoing. also, in the semiconductor industry, really going great, the industry's consolidatconsol the companies enjoy great book to bills, and so the positiveness coming out of washington, d.c. is very, very encouraging to corporate

concern. >> what about next week? what if we do get into a government shutdown and the budget doesn't go through and health care -- does that matter to you from an investor's standpoi standpoint? >> has not mattered in the past. been through the scares before. they get work out. plans of corporate executives are not set aside for a a two, three-year period. we invest out five to six years now, and i think that the internet has really changed and entering a lot of industries, and the banking industry, for example, has a long way to go in terms of what they need to invest in, and so, you know, in our fund, particularly, we invest in a lot of the bank companies like lending tree that's changing the world or q2 or even square, now the third largest merchant processer in the world, and so these are companies changing the world, and when you get positive procorporation things coming out of washington, this really helps stimulate investments.

>> i think the upside right now is that the hopes for near term dramatic policy progress have been tamped down. look at the survey just released last week, very low expectations for comprehensive tax reform. if you get anything, the hint of progress, maybe that's a suri. also, the stocks that hav been behaving the best, nasdaq stocks that drove the stocks to a new record are not policy dependent at all. retailers bounce. nobody thinks the border adjustment tax is coming. that was a january story. we got all bulled up on policy. now it's been other things. >> i think the problem you'll see is stocks are still highly valued. you're not going to get a 10% move in the s&p if you rely on the big tech stocks and a couple financials. >> put the -- i need to put your picture up to next to jeff -- >> you can be on the wall. >> and jones. >> and jack, and ed, the market's overvalued.

>> put it up there. i'll stand by it. i'm good on that. >> i'll do that. jim, thank you for joining us. >> thank you. >> appreciate it. we have to put up with the guys for the rest of the hour. >> somebody's got to do it. >> french citizens head to the polls this weekend to determine that nation's next president. when we return, we'll head live to paris and look at how the leading candidates could affect the future of europe and your investments. plus, a new york university professor says amazon will become the first $1 trillion market cap company. we'll talk if he's right later. you're watching cnbc, and we're first in business worldwide. the road can change in an instant. but with lightning fast shifts and dynamic track-tuned suspension, what the road demands, the gs delivers. experience high performance through high technology, in the lexus gs 350 and gs turbo.

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investors in the u.s. and around the world are paying very close attention to the week in france, the elections, and we are live in paris with the latest on the closely watched race. good evening, michelle. >> reporter: good evening, bill. roughly 24 hours away from the terrorist attack that happened here last night that left one police officer dead. the french prosecutor today said that when they found the gunman shot to death by the police, they found a note where he professed support to isis. last night's attack is not the first one in france, not by a

long shot. you'll all recall back on january 7th, 2015, the headquarters of the satirical magazine "charlie hebdo" was attacked as well. they are unafraid to insult. there's the current edition. this is marie le pen, a controversial candidate, with her huge mouth, as they describe it, a voter dropping in a ballot with the headline, france stands on the edge of the abyss. we spoke with the journalist who used to work at charlie hebdo and is still afraid to walk in open spaces. >> are you nervous right now? >> i'm not nervous, i'm used to it, but avoid things that generate, in position to be attack from the streets, from someone who recognizes me. it's part of the journalist life today. >> reporter: now, that fear is what la pen harnessed. she's antiimgrant, memente want

control the borders, and she's antieuro. she's one of four leading candidates who control roughly 20% of the votes. who wins? it's a toss you. >> everything's supposed to be a for sure, between the four candidates, everything is possible. >> reporter: that is why we are so fixated on sunday. only two candidates move on to the second round. it's widely believed le pen is one of the two candidates. we will know late sunday night. guys, back to you. >> michelle, has she made comments as it relates to the terrorist attacks last night? you mentioned earlier that there's a large part of the population that's undecided, has she tried to sway that 40% or so? >> absolutely. she suspended the campaign today, but did make a short speech in which she said,

something should happen. something here in france called the s-file, that's a list of the people on a watch list they are concerned about maybe have not committed a crime yet, but worried about them. she wants them all deported at this point. shemen she wants more and more and more strength at the borders to be done now even before the election. she asked the current president hollande to do that right away. >> we think we have it figured out, mike. i mean, if she's a victor in the case, the euro gets slammed, market goes down, you know, it's another armageddon day, but if it -- yet we thought the same thing would happen after brexit and after the election here. >> we did. i mean, i guess at least in this initial stage, the scenarios, several that can be -- if the two year row skeptic candidates make it through, then the betting is that at least it's a gut check for the euro, and that creates stress in the markets, but, yeah, i grease that seems

to be the textbook move. you know, whether we have people who are kind of over anticipating the ultimate rebound how people wish they did after brexit, i don't know. it seemed like a messier situation. if we get there, i would point out, you know, people say, well, the polls are wrong, wrong, wrong, instances, but she's way behind in the polls in terms of the notional matchups later on, so -- >> have we seen an election in europe with the largest percentage of people who are undecide undecided one day before the election on how they vote? evan, what do you think? >> i don't know the answer. i'm not in france now. i would say that the nightmare scenario, the one that definitely is bad for the markets is the one that mike just touched on, where you have the far right and the far left candidate make it through the next round. i still think that's pretty up likely. the general view is that as long as you have one of the central candidates into the next round, they would be le pen handedly. that's the conventional wisdom. i'm not saying right or wrong.

i am saying that i would say this election means a lot more, i think, for europe than either brexit or trump's election in the united states. because this basically would be the disillusion of europe as we understand. >> final thought, michelle, what's happening? 24 hours here? >> oh, you know, a good point about the up decideds. so many similarities what we see here and what we saw in the united states, which was, are people really undecided, or are they unwilling to admit to pollsters they'd vote for le pen because she's so controversial and perceived as racist. that's the unknown factor. how that is answered leads to what we know on monday. >> indeed. all right. thank you, michelle. >> thanks, michelle.

>> see you later. breaking news right now. here's the details. >> hi, sue, klaus resigned from the board ofdirectors, effective immediately, not standing for election of annual meeting of the stockholders on may 22nd. this is the german executive who stepped down as chairman and chief executive in mid-april. back to you guys. >> all right. thank you. >> that's the story of the week. >> oh, i love -- >> not a great week for -- >> this story, not a great week. >> bizarre. >> what? >> bizarre. >> to me, it was the most interesting story of the week in terms of how can someone showing that much poor judgment, and i think this was the view -- >> by sending the letter -- >> the letter, i think that's the view probably that the other members of the morgan stanley board came to as well. >> not just sending in a letter without telling the board that you're sending the letter to the activist investor, but that the

language in the letter was odd to say the least. >> absolutely. the breach of protocol, the poor judgment involved there and embarrassment involved. you don't want to sit on another large prominent board -- >> of a financial institution. >> that deals with hedge funds. >> exactly. all right. thanks. thanks very much. all right. president trump hopeful that congress, perhaps, could vote on replacing obama care next week. coming up, heading to tennessee where many residents have no obamacare option. to see what it's like to live with uncertainty and state's challenges in filling that insurance void. >> meanwhile, musk warned about dangers of artificial intelligence, but now he wants to merge the human brain with a.i. we have details, gee whiz details coming back. with this level of engineering...

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with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. it's your tv, take it with you. with directv now and at&t, get the ultimate in entertainment plus unlimited data. get directv now for $10 a month when you have the new at&t unlimited plus plan. the request do continue the oil project, currently prohibited by sapgss against russia, rex tillerson was previously exxon's ceo, as you know, but rescued himself to all decisions related to the oil joint for two years. >> musk is outspoken as you know about the risks of artificial intelligence. now the tesla founder's working on meshing a.i. with human

consciousness. there's a neurolink he's going to pioneer. the first application of the technology will be therapeutic and musk says it will be some 8-10 years before it can be used commercially. he's also confirm he'll occupy the chief executive role at neurolink, making him ceo of three separate companies. a serial ceo. >> yes, he is. >> class divisions at airlines are getting wider as now carriers cut amenities in economy and boost them in business and first class in order to fill planes and stay competitive against discount carriers, american airlines, united, and delta are all slashing prices for economy class tickets and cutting back sharply on basics like carry-on bags or seat choice. meanwhile, they are upgrading first class with small individual cabins and fully reclining seats. >> you know what they call when you turn right on the plane?

you know? >> i know where you're going. >> you know what it's on wall street. >> it's called the walk of shame. >> gosh. >> i'm just telling you. that's not my joke. it's a wall street joke. >> wall street is not elitist at all, not at all. >> by the way, by the way, i mean, we can talk about that all you want, you how about this exxon story? all the, you know, the fear mongering said there must have been a deem cut to get tillerson to be secretary of state to allow exxon russia to get the drilling contracted for. didn't happen. >> no, it didn't, you know, we can keep of play it a bunch of ways. the contrary that says, well, of course, they are not grabting it now because of the con flikflic but it went against expectations because there's been a a couple moves now, obviously, with the administration has explicitly decide the to take an oppositional role to russia. maybe it's, you know, maybe this is some kind of an evolution 100

days in. >> never know. musk, fascinated by the story. bill and i talked about it on the way down in the car to the exchange, and he's always warned about artificial intelligence replacing humans. this is a move to incorporate it so they -- so that humans don't get replaced, right? >> i -- you know, you -- you read all the time about, you know, people getting the chip in the head, all that, and san tolly told me in the break, he'd volunteer. if they gave him a free ride on the hyperloop, he'd volunteer. >> okay. he's another question, he's -- now he's adding another company to his portfolio, but he's going to be ceo of, can he -- -- >> of course -- >> here's the -- >> another jorkack dorsey. >> tesla shares are $300 a share. if you own tesla, you think east iron man as the case may be. you believe in the cult that he

gets stuff done. it's less the matter of spreading himself thin -- >> you think? >> and, also, what is -- what's involved in being ceo of the new venture? backing some of the existing deep research in the area? i don't know. >> says it's 8-10 years. >> exactly. it's a long -- >> before there's commercial application. a long lead line, but, mike, he's executed on basically everything that he's pioneered. >> give him the benefit of the doubt he'll continue to execute. i just feel like they are giving him a long leash. >> wall street has a history of always giving somebody the benefit of the doubt. they gave eddie and sears, the benefit of the doubt all the way down from 250 a share all the way down to, i think, it's $8 right now. they'll give you the benefit of the doubt until things go wrong. >> it's not always going bad. put it that way. >> all right. >> on we go. that's right. it's time now for the cnbc news update. >> sue, bill, this is what's happening now. san francisco's getting the power back.

the bay area rapid trance it system or bart is back up and running again. a substation fire knocked out electricity for nearly 100,000 customers after 9:00 a.m. low local time. they took it in stride. iraqi forces are closing in on extremist in mosul. fighting resumed to do to densely pop pew lated areas four months after iraq declared mosul fully liberated. the japanese government asked local officials to prepare residents for a possible north korean missile crisis. ad min straiters there gathering in tokyo to discuss steps that could be put in place. this is just days after north korea tried and failed to launch a missile. queen elizabeth celebrates her 91st birthday today. no public appearances on the schedule, but there's word she's se celebrated by watching horse races. she's the oldest and longest reigning royal monarch.

they played her "happy birthday" at the changing of the guard, and that is the cnbc news update at this hour. back to you, bill. god bless her. >> amazing. >> happy birthday. the only thing i think about, though, in the meantime, prince charles is studying in the waiting room. will he ever be king? i don't think so. longest wait ever, i believe. >> yeah. >> absolutely. >> she shows no signs of slowing down. >> old movement there, to skip him, i think he's pretty well aware of. >> oh -- >> i don't think -- >> the polls -- >> speaking of polls, the polls do not hold him favorably as the monarch. >> thank you so much. >> thanks. >> sure. see you later. >> speaking of jeff bezos, shares soared nearly 20% this year alone, and helping the ceo become the second richest person in the process, but up next, talking about whether amazon can become the world's first company to reach a $1 trillion market capitalization. >> the sequel to blade runner

coming out this year, and the man who predicted today's biggest tech creations in designing the original movie more than 30 years ago spoke to jane wells about the latest predictions for the futurement don't miss that. he was right. that's later on "cloeting bell. - we all want the latest device,

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breaking news on unite the airlines. tell us about it. >> bill, we have a filing from united airlines changing the contract of oscar munoz, the current ceo, removing a provision he would be appointed chairman of the board in addition to being ceo next year. the filing says this pronation until change was nicinitiated b munoz himself. he's not chairman, but staying ceo, according to the filing, this, of course, following what, of course, was that baffle with the customer about two weeks ago. back to you, bill. >> thank you. we don't have a lot of time to unpack this, but the timing is interesting. >> yes. >> certainly withholding a measure of control ultimately for the company by separating the chairman and ceo roles. >> you wonder about the health. i'm not saying we know anything about it, but this is a guy who

had a heart transplant. >> he did say the buck stops with him. >> sure. >> and that he needs to change the corporate culture. evan? >> just going to share the buck. >> they always say, you know, oh, he did it himself, you know, it's one of these kind of sr. i'm sure various members on the board made it clear to him it was in his interest to do it. >> all right. interesting. costco upgraded today to overweight from equal weight at barclays saying the big box store is one of the few retailers largely protected from amazon. >> amazon comets to gain ground in the retail space as you know. growing 373% over the past five years, and this year, an nyu professor joins the course of people predicting amazon to be the first $1 trillion company. let's bring in luke and ed lee. welcome. you know -- >> hello. >> this professor is not the first to predict a trillion

dollars. do you think that that is feasible, amazon certainly seems to be firing on all cylinders. >> it is. it's feasible. you need to take it in the context of this ise iing dlikei direction to carve up the retail landscape. this trillion dollar opportunity, looking at the markets that they are going after, e-commerce, 15% online, eventually 70%, and the poll position, it's easy to understand how this could be a trillion dollar company. >> so far, ed, the law of big numbers has not kicked in for amazon. they still do well. certainly, you can quibble with the profit the -- >> not slowing down. that's also because they -- i mean, we think of it as an e-commerce company, it is, but really jeff, the ceo, his mind set is just to be really expanse evidence. it's just going to be a portfolio company owning all kinds of businesses, any kind of growth business he says. that's why abs a part of that.

when it started out, it was a ran doll thing they got into, and now it's massive, fastest growing part of the business and developing a delivery business, of course, tieing into e-commerce, but look for more things to come. that's if they are the first trillion market company because they expanded to other areas. >> what i have with the construct of the first trillion dollar company, it's a very strange target if amazon more than doubles while apple does not go up 35% and alphabet does not. that's what it takes for either of the two kaen companies to get to a trillion dollars. >> gene, what do you think? >> i think amazon's going to close the gap quickly and there's a sprint to the trillion dollars between the three companies, and just one other one that's going to come quickly, racing up behind the two, tesla. i don't want to get off topic, but those three companies will kind of be at the finish line for the trillion dollar prize. >> i i don't name names, but eyes were rolling there.

>> i know. i know. >> i'm not naming names. >> it was a small eye roll. i have a question for ed, gene may answer as well. amazon is the only company that's ever, for coming in on 20 years, kind of disodisoh bays t laws of valuation. any other company, microsoft came down, apple came down, every company their earnings caught up with them eventually, so thaw yo can valuate. amazon's the one exception. basically, does it have to stay the exception in order for it to -- >> i think there's a lot of good reasons for that, though. unlike other startup companies that really hatched, silicon valley, people who don't have banking or finance backgrounds unlike bezos, who does, when he went public, he was clear with what 9 company is about. don't buy the stock for profits. i'm not going to give it to you. we want to grow. that's been the operating principle from day one for him, and i think that's why he separates himself out and amazon

achieved an average of annual 20% growth every five years. it's trading so high. >> can it do that for another 20 years? >> great question. i don't have an answer to that, but he's got the right mind set absolutely in trying to achieve that. >> hasn't he, gene, changed the traditional relationship between a company and its shareholders? the shareholders want -- they are owning his vision of basically dominating in almost every class. that's seeming to me why they are holing the stock. >> i would add one piece to that too is that the opportunities are so big, specifically offline, online, aws, any other things that he might get into, they are so big investors are willing to forego profits for growth longer term. if they did not have open ended markets, this would be a stock trading lower. >> i -- go ahead. >> no, i was just going to say, one thing about what makes it

more amazing, what amazon has done in creating value is that at one point, high to low, the stock was down 90% in the bear market in the early 2000s. remarkable. almost every single year there's a 20% drawdown, overheats, investors get impatient. it's not given you a chance to open it on a pullback in a long time. i think a discussion about whether this more than doubles, a market cap company more than doubles in marmket value is something to be nervous about rather than assuming it just goes one way. >> china is a hard market to crack, they have not done it, trying to get into india as well as everyone else is now. that's more competitive. we'll see what happens there. >> of all the pleases, amazon's going brick and formar. >> right. >> if they -- >> they are, but that's largely a marketing ploy, i think, for their products, a way to experiment, you know, the last

mile delivery system, which that's another thing where they try to own, hack that, so to speak, and having some store fronts and a walk-in warehouse is part of that overall strategy. >> quickly, ed, mean they understand the retail customer in, i think it meechbs they understand in a different way because the rest of traditional retail is faltering. >> right. that's the thing. we're talking about yuchbted earlier, customer service, that's one thing amazon also from day one figured out, which is serving the customer, meeting their needs, you ow, making it easier for them, you know, wn they want to buy something, return something, whatever it might be, and that's part and parcel of all the other strategies going guard. >> thanks. gene, ed, good to see you both. thank you. >> thank you. meanwhile, blade runner getting a reboot this fall, and the future is to design the look of the original back in the '80s, spoke to jane wells about the next few decades and what they look like. a peek at the future coming up. president trump saying there is no rush to pass health care

reform, but with the future of the affordable care act urn certain, one state faces possibility of having no snurpers on the exchanges next year. what that means for patients up next.

house republicans, we are told, working to repeal and repolice station obamacare, but as insurers lay out plans for the affordable care act exchanges for next year, residents in one area of the country are worried they may not

have coverage at all. we are in knoxville, tennessee. bertha? >> reporter: bill, the collapse of obama care is real in eastern tennessee, and as they talk about reviving a new vote, the stakes are really high for people in knoxville. they are self-employed. the only option because he's paralyzed and in a wheelchair is in obamacare, nothing off exchange. they are very concerned right now that things are not going to change. >> it's very confusing, and it's scary. i don't know exactly what's going to happen. i do know that simply waiting to let the current law explode is going to leave a lot of people

hurt. >> reporter: the problem here is that humana is the only insurer for much of the eastern tennessee counties, and they have pulled out for next year. rights now, it's really tough to get into any other insurers in the state, blue cross, blue shield of tennessee and cigna to step in because they don't know what's going to happen in washington. in the meantime, areas like health here, parties scramble to get every procedure they can done because they are worried next year they will not have insurance to pay for it, and every time there's talk of reviving, reform, and see iing fall, it raise anxiety levels. >> the lack of clarity, changing every single day in a way makes it harder because one minute you are ready to deal be one plan, and literally two hours later, or even the next day, there could be a different proposal.

>> reporter: the talk in washington may be theoretical, but the pain of it is real here. bill, sue? >> wow, thank you so much. >> thank you. >> in tennessee. all right. president trumpments to invest a trillion dollars in american infrastructure, but if the future is behind blade runner is right, the president should reconsider where dollars are going. jane wells is following that story for us. hey, jane. >> reporter: hey, guys. yes. from the land of botox, we talked to the man who predicted wearables, driverless cars, hand held devices, and the internet named years before it was true. what's next? that's next. redictable, there's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden,

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you may not recognize his name but you will recognize his work. his name is sid meade. he designed the look of movies like "blade runner" and predicted wearables and wireless hand held devices 40 years ago. jane wells is in los angeles, the city highlighted in "blade runner" with what the futurist is now predicting. jane. >> reporter: hey, guy, you know, l.a. has the nation's worst traffic. nowhere is infrastructure investment needed more. no it's not as bad as this version of l.a.. yet. 35 years ago, ridley's requested blade runner" said there would be an overcrowded los angeles in 2019. she a futuristic car designer who thinks there will be fewer cars, not more. >> these are from "blade runner." >> now, as you said, sid meade has predicted things decades before they happened.

he drew driverless cars in the ''80s, hand held items in the ''80s and something he named the internet in 1976. meade says we should plan for a society with infrastructure geared towards driverless uber and deliveries from amazon. with millennial, there won't be individual car ownership. it's going away. >> they aren't interested. they cost a lot. have you insurance, licensing, maintenance, gas, fuel is the least of your worries. >> and as meade predicts, more of us will move and live in cities he sees infrastructure investments in bringing nature into urban areas, like the high line in new york. >> we're starting to do it world wide to make non-automotive streets and cover them over with parks. i know it's going to continue.

>> reporter: he also has been right about many other things before. wp i asked him about elon musk hyper loop guy. he says the technology is possible but right now the cost is prohibitive. he's not quite a believer in that, yet. >> wow. what a track record? >> i think he's on to something with the fewer cars. the millenials, they're not big drivers. they are urbanites to a degree. >> reporter: in the old days, we used to get in our cars to see our friends. now we see our friends in virtual reality or hanging out on facebook. he says virtual reality experiences will be so immersive, why get on a plane? whew. >> really? >> think about it, jane, he's not been right about everything, because in "blade runner," los angeles is dark and constantly raining, are you out there on a beautiful, sunny day. he didn't get that part of the future right. >> reporter: but this year it rained a lot. also, there aren't like what did

he say, i think 16 million people or 100 million living in l.a. in 2019. that didn't happen either. the replycan'ts aren't that realistic unless i'm one. >> we leave with you that question, ladies and gentlemen. thank you, jany. >> thanks, so much, janie. we have more breaking news right now on united. back to seema mody on hq. >> we have a message from united continental. the united board is tying the program directly tied to customer experience. so it will be looking at the compensation program tied to ceo oscar munoz. last year, just in case you were wondering, munoz total compensation was $18.7 million, including stock rewards of 13.8 million. again, according to this filing, the united board is reviseing the 2017 executive compensation program tied to customer experience. guys, back to you.

>> thank you. i'm thinking now, if you just joined us, we also learned that he will not assume this chairmanship of the company next year. i'm thinking now that wasn't his idea. >> the question how is will we measure customer experience with the metrix. >> especially given what we talked about earlier, is the money is going to the higher paid business and first class customers and away from economy, which is not going to make people any happier. right? >> i know you got another line coming. >> no, i'm not going to say. >> no, but you have thhave you . a little smurk going on. >> when everybody else goes low, we go high. >> i went low. >> next week is another big one for earnings. it will get results from alphabet, amazon, microsoft, i'll tell you what to watch for coming up next. and coming up on "fast money" the chart master, himself, carter worth says it's time to hit the brakes on one auto stock.

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[ music playing [ music playing ] >> what were you doing then? you were doing something else? >> i was in college. >> mercifully, there was no picture of us. my hair was this big. >> we couldn't find that. we have an earnings parade next week. look at the names, mcdonald's, chipotle, amazon reporting results. what should investors be looking for? >> i think the alphabet amazon came because you have a real migration into the megacap growth stocks, cap stocks. it will be a test whether they can hold up. >> i'm dumb founded by the fact that the companies that matter the most did not even exist in 1983. >> there you are. >> that's a real statement. >> you think about that.

>> a big tech company. >> that does it for "closing bell." a lot of fun. >> it was. >> we will see you later tonight for "nightly business report" on pbs. >> that does it for "closing bell." "fast money" begins right now. have a good weekend, everybody. >> "fast money" starts right now! live from the nasdaq market overlooking new york city's time's square. i'm 34e78 lisa lee, our guests are tim seymour, karen feinman and steve grass so 679 will it be a major boone for the big banks. >> we got that details. mcdonald's soaring to new high after new high, we'll tell you how can you buy the stocks for less than the cost osf a minute ago mac. amazon, microsoft, all set to report earning also. we will tell you the one stock that can down the whole sector. next, we are 48 hours