that does it for us on "the halftime report." "power lunch" starts right now. we'll see you in a bit. rally on, garth. the nasdaq hitting 6,000 for the first time ever. the dow and the s&p 500 having their strongest two-day rallies of the year. is it not too late to invest in the stock market? that's the question. how to still get in. oh, canada, president trump slapping a huge tax on lumber coming in from our neighbors to the north. reaction from ceos on both sides of the border and what this means for home prices in america.

it may be a small street but billionaire's row. where is it? you have to stick around to find out as "power lunch" starts right now. ♪ welcome to "power lunch." i'm tyler mathisen. as brian said another big rally on wall street, the nasdaq topping 6,000 as you see right there. the first time in his are try. what got it there. we'll give you the 13 names in the nasdaq hitting new record highs -- facebook, alphabet, microsoft among them. and another triple digit rally for the dow. if it holds this would be the first back-to-back 200-point day, days, i should say, gains for the dow since the election. another notable stat the we're only two days into this week but the current weekly gains for the dow and the s&p 500 are the best

to make them the best of 2017 if they hold. almost 17 names hitting new 52-week highs, best buy, expedia, lowe's, home depot. we're all over this big bull run. and bertha coombs at the nasdaq. first, though, to bob pisani on the nyse floor. >> reporter: this is unusual trading, tyler, two days in a row. the s&p 500, two days in a row we move up big and flat lined throughout the day. no attempt to sell off. look at that, two days in a row on the upside here. 14 points away from a historic high. the markets are moving because a lot of companies are giving decent guidance for the full year. look at the effect caterpillar is having on the machinery stocks they compete with. it's moving deere, terex, the whole sector has moved up. elsewhere, yields are backing up. that's helping the banks. the big money center banks have had a terrific two-day run.

the regionals are strong. home builders are under pressure. pulte missed and the tariff news, you see the home builders to the down side. risks are lower. there is lower risk from geopolitical events going on. the tax cuts failing, that's a risk but we know that's in play. the president is trying to make some progress this week. economic data, that risk remains high. the first quarter hasn't been good. the bulls are arguing the second quarter economic data will be better. we'll see. only 14 points from a historic high on the s&p 500. it's been a great two-day run. there are a lot of big numbers today but the biggest market number of all is that one there on that snazzy animation we made for bertha coombs, the nasdaq 6,000.

>> reporter: don't you love round numbers? the interesting thing is the small cap russell 2000 also notching a new all-time high today and that's the leader in percentage terms. it has lagged as the nasdaq compass it moved from reclaiming 5,000 last july to today's move well over 6,000. part has been driven by fundamentals in the chip sector. still about 20% below its all-time high back in 2000. we've seen a lot of consolidation and the upgrade cycle from memory chip is driving names like micron and chip equipment makers like lamb research and the irony is how hard tech stocks fell following the election. strongs earnings have trumped that sentiment. >> thank you very much. so are we heading higher? if so, how much higher? we want to know the exact number. liz ann saunders is on the cnbc

news line to tell us. chief investment strategies with charles schwab. great to have you with us even if by phone. we understand you're caught in traffic. whether you think the run in tech stocks can continue because businesses are buying the things, the chips, the devices they make. >> we do. technology has been a long-standing outperform rating we have had at the sector level and i think that after -- when we went through the consolidation phase for the market in march and into the first part of april, which was more about a rotational correction than a serious price correction, tech took a breather there for a while. it's obviously come back with a vengeance. i think the demand for productivity, enhancing equipment and services will continue to drive.

>> i assume that would be helped if had in any tax reform there is so-called immediate expensing of capital expenditures. can't help but help. >> it's certainly to the benefit of technologies. it isn't necessarily to tech's benefit more than other sectors. >> the nasdaq isn't the only record setter today. the russell 2000 is as well. where would you fall in large cap domestic equities and whether you would favor smaller cap names at this point. do you have a point of view on that? >> we do. we favor small cap. it's rolled over in the last couple of months and at the point it began to roll over a valuation premium that was

pretty lofty, certainly relative to history. that came in a little bit. we would still have a bias towards large cap. >> even on days like today you're at schwab, do people care? are they coming back into this market for the first time in years? is it just the people that have already been there making more money? do we have new participants? >> i think the nature of this recent pullback in the market, the rally since then has probably more to do with sentiment than anything else. what's been amazing even if you just think about this year so far is how quickly optimism comes off with even the slightest move down in the markets. i think it does show investors are skittish. the minute, either whether it's sad news or some weakness in the

market, if you look at the attitudinal measures of sentiment, man, they come down really quickly. it tells you how skittish the optimism is, and i think that continues to be a good long-term support for the market. >> quick final question, how worried, if at all, are you that trade barriers, new trade barriers, for example, on lumber or other products coming into this country from canada, mexico, other places, are going to have an effect on the market? is it a factor you are concerned about? >> it is, yes. when we're asked what we view the biggest risks to be that could topple this thing, it would be trade wars. the symbiotic relationship with canada and there's no deficit there and trade is extremely important between us and for both countries it does make me nervous, yes. i think the hope is that cooler heads prevail. >> thank you for being with us on the phone. sorry we couldn't work it out to have you on in person. >> ditto, thank you.

in the bond market, two-year notes, rick santelli is racking the action. rick? >> reporter: two-year note yields have moved up from the teens to the 120s but that didn't stop investors. auction a-minus for the $26 billion two-year notes, the first part of $86 billion in supply. the dutch auction was below the one issued trade, 2.85 bid to cover. indirect bidders 58.9. that's the best in 13 years. tomorrow will be $34 billion in five-year notes. it looks like the short end even if the fed in play is enticing to investors. sully, back to you. >> rick, when you said that

number, steve liesman and i went, what, are you kidding? on a day like today, is it weird that we're seeing buyers except for gold, there's buyers in every asset class. >> reporter: this one is surprising to me since there's been so little upside yield pressures considering the distance traveled, zeroing in on 500 points since friday's close on the dow but maybe that's exactly the reason. maybe investors are thinking we're going to revisit some of the lower yelled trading ranges that we experienced before the french elections. >> all right, rick, thanks very much. if you watched "squawk box" you remember the big question we posed, why are corporate earnings housing the job market, even the bopped market so strong but yet our cnbc update shows first quarter gdp is tracking at a weak 1%. it doesn't square. let's try to square it with steve liesman.

steve, we've talked about this before which is all these metrics are pretty good. gdp at 1% or less than 1%, i don't understand how both can be true. >> i think you have a couple different factors operating. you also have a kind of rebound in earnings that's been in the works for quite a while. we kept saying next quarter, next quarter. we're in the quarter we had that earnings rebound. the second thing on the other side you have this weak consumer spend i spending could be part in first quarters going back for a while, also later tax refunds. you don't see the huge confidence numbers translating into better sales. all those lower bars there are all first quarter numbers.

it's not unusual for the consumer to take a break or for the data to otherwise suggest. >> i guess, diane, what frustrates me a little bit is that for the last few years we haven't had a quarter with blow-out economic growth. we've had some that are okay and some that are less than okay but nothing that's been woo-hoo. here we are with corporate earnings, 4%. i understand you get into the not unemployment thing. are you surprised by the seeming disparity of the two? >> actually i'm not. one of the things steve alluded to is this really terrible term in residual seasonality. 20 years we've been missing the first quarter on the low side and it's showed up as the catch up and growth later on in the year. it's a missed measurement problem. it was less noticeable at 3% and when your potential growth rate is 2% or less.

i think it will come in at half a percent, due to that missed measurement problem steve alluded to. we had strange things happen, delay in tax cuts. get between this extraordinary optimism about the and skoef of pro-growth policies which can move the needle tenths of a percent not percents. we're not going to get 4% growth sustained. i would love it but it will not happen right now. that's important to understand. on the flip side the reality check that we are doing better. we're moving in the right direction. the threshold is low. >> we're seeing a lot of estimates in the 3% range. >> i'm right there with you,

steve. >> one versus three. >> right. i think that's the important issue. we really are looking at the lumpy growth makes it hard. when you see anything with a goose egg, if we get as low as i see it, a half percent, people don't like zeros in front of gdps. they like it as we go up on the stock market. bewe sort of keep in mind the running average and we also keep in mind, like you said, brian, the unemployment rate is lower but, more importantly, we have generated a half million jobs in the first quarter and the underlying trend in wage growth is on the up side. we've broken out of the 2% threshold on average earnings. >> we need all the stuff we talk about to trickle down, if you will, to the rest of society, the coasts. we need it in the midwest and where you are. >> in the rural areas. >> thank you very much. steve liesman, thank you. we have an impromptu update.

>> sell it on ebay. the most expensive street in america and we will take you on an exclusive tour of the new billionaire's row. here is a hint as to where it might be. but first the u.s. targets canada with lumber tariffs and we'll look at the angles, the impact on canada, the impact on u.s. housing, and we'll speak with a u.s. lumber ceo. don't go anywhere. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

you need our lumber. you need our lumber to build your homes. prices are already very high in the united states. they've gone up $3,000 per house this year. and for every $1,000 in increase of the price of a house the u.s. home builders estimate that that means another 150,000 u.s. families can't afford a home. >> that was the can yad and canadian foreign minister. live with how this could impact the u.s. housing market. diana? >> well, it means the cost will go up even more. prices for both new and existing homes are already hitting new highs. a texas home builder said in a

statement that will, quote, harm american consumers and housing affordability. one-third of lumber used was imported. the vast majority from canada. that goes to framing, molding, floorgs of the new homes themselves. lumber prices were up 22% this year just from the uncertainty surround iing this possible tariff. it is estimated increased lumber costs will add about $1,200 to the sale price of the average newly built home and they estimate it could cost over 8,000 u.s. jobs. higher costs mean builders can build fewer homes and afford fewer workers. it hits businesses that sell and transport building materials. they say this is a net figure including the increase in domestic lumber jobs. the commerce department estimates that last year the u.s. imported $5.66 billion

worth of canadian softwood lumber. it argues canadian lumber is heavily subsidized. wilbur ross said this is not our idea after properly functioning free trade agreement. >> diana olick. reaction from across the border. the forest products association of canada provides a voice for a $67 billion a year industry that represents 2% of canada's total gdp. great to have you with us. >> thanks for having me. >> i would think that your concern could be that this could impact the demand for new lumber. is that really the worry for you at this point? we could be raising costs at a time the industry could p potentially take it. >> i think, first of all, we respect any country's right and interest in ensuring trade deals are working for them.

in canada i think about states like ohio and wisconsin and pennsylvania and it's a lot of the blue collar communities that will be hurt from this. from a canadian inward looking selfish perspective i'm concerned about the impact on our mill communities in northern c canada but, furthermore, the thing that's bizarre about this, there's not a win in this for the u.s. consumer. we are seeing an upparticular in housing starts in the u.s. our forecast suggests that will continue for the next few years. at the end of the day you need our softwood lumber. it's frustrating. we'll see u.s. consumers paying more for home rentals and construction. >> the fight over softwood lumber has gone on since the

19th century. do you feel you're a pawn when it comes to nafta? >> it feels like ground hog day for sure. this is the fifth time we've been through this. canada has been proven right. that's really frustrating. it is like the definition of insanity in terms of going and asking the same questions and expecting a different outcome. we believe duties are unfounded and this is a creative writing exercise and there's not a win for u.s. consumers. >> are you confident that it there will be a deal work out? >> it will take time and this is the long term versus the short

term thing. i'm thinking about my member companies that i represent in northern british columbia, in northern ontario in new brunswick who will have to think of meeting payroll in a few weeks. they're expected to put on deposits these amounts. if you're a small mill operation, that's even harder. there's a lot of concern here in terms of the impacts on the sector. i believe through diplomacy and engagement we can get to a deal eventually but it could take a couple years. >> thank you. we appreciate your time. with the forest products association of canada. all right. so what impact will this tariff have on the united states' timber companies? joining us is charlie thomas, co-owner of a lumber company out of mississippi.

thank you for joining us. we got the canadian view. they've been proven right five out of the last six times, what's the united states' view? >> we're pleased with the trump administration for fully enforcing the u.s. trade laws. it will support our industry and our communities. i will tell you i listened to your interview and i have to say that a lot of these u.s. mills are in very rural counties in the u.s., too. the previous agreement worked good for canada, not the u.s. the decision by the commerce yesterday confirms canadian lumber producers have been benefiting for massive subsidies. i think the department of commerce went above and beyond what they had to do to prove this and we are pleased with it.

talking about home builders being put out. a $1,200 increase in the cost of a home on a 30-year mortgage amounts to about $6 a month. i don't believe that's going to put 150,000 people out of building a house. >> good point but has the imported canadian softwood affected the lumber market? and, if so, can you tell us how? can you say, yeah, we notice a drop in pricing or it's put people here in mississippi out of business? >> i've been in the lumber business since 1981 and it's been a constant battle. by them subsidizing their timber it keeps our timber and lumber prices artificially low in the u.s. it has hurt our ability to grow.

we have vast amounts of timber. we haven't been able to utilize that because of the lumber coming out of canada. you have to have a fairly level playing field so that you can make these investments. >> charlie, thank you very much. charlie thomas with shuqualak lumber wells fargo had a shareholder meeting. leslie picker is there with the company's ceo and chairman for a first on cnbc. leslie? >> reporter: hi, tyler, and thank you both for joining me now. the results are in for the directors. more than half of the board received 70% including you, steve. what message do you think shareholders were trying to

send? >> i've been talking to shareholders regularly for the past seven months and very regularly for the past three weeks. the message is they like what the board has done, what the company has done. they like the transparency of the company since the sales practice has occurred. the board didn't get on it sooner than didn't stop it sooner. they were voting to send a message to the board. we got the message that we need to resolve these problems and continue to make wells fargo a better bank. >> reporter: none of these directors are required to submit their resignations but they could. would you accept from any of the board members that chose to do so? >> gosh, i hope not. i think we have a terrific board. i think we've added two new board members. karen petes and ron sergeant,

and have one of the best boards in financial services. we've gotten the message from our shareholders and will be responsive at the board level and at the management level to make sure that we fix everything that was broken and build a better wells fargo. >> reporter: you have board meetings to get to today, so i appreciate your time. thank you so very much. i will send it back to you. >> thank you very much, folks. groceries, trucks, energy, it's the good, the bad, and the ugly in today's trade next. another triple digit rally for the dow now up 15% in six months. take a look at the dow 30. caterpillar and mcd's leading the way. they're going to do it. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you?

new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass.

hi, everybody. i'm sue herera. here is your cnbc news update this hour. authorities reporting eight people linked to terrorism have been arrested in a large-scale raid in spain. officials saying some of the suspects may have been involved in the march 2016 belgium suicide bombings. ivanka trump advivisiting the holocaust memorial in berlin in remembrance of holocaust remembrance day.

the president's daughter is making her way through the memorial's concrete slabs which symbolize the chaos of the holocaust. ivanka's visit is her first international outing as the special adviser to the white house. a congressional probe is looking into president trump's former national security adviser. there is speculation michael flynn may have violated the law by not disclosing his business dealings with russia. and nascar star dale earnhardt jr. holding a news conference to discuss his plans to retire after this season. he has suffered from a number of concussions, competed in more than 600 races and is a third generation race car driver. that's the news update. we're going to miss him. the sport will undermiss him. >> the sport is undergoing a seismic transition, earnhardt this year, tony stewart and jeff gordon last year.

>> maybe you should get in there. >> i'm so heavy the car would be 30 horsepower down. thank you very much. >> you're welcome, brian. another big rally that features a historic milestone which is the nasdaq hitting 6,000 for the first time ever. the nasdaq is now up 24% over the past 12 months. the average nasdaq 100 stock is up 14% just this year. the dow posting gains, up 15% in the past six months. nong your s&p 500 leaders right now caterpillar a blow-out quarter nobody expected. freeport, netflix and waters corporation. by the way, the ceo of waters corp will join us to talk about their big quarter. melissa? >> thank you, brian. time for the good, the bad, and the ugly. the good would be super value up by 6.5. the minnesota-based grocery operator beating expectations. on to the bad, ryder systems down 12.5%.

a one-month low. this after missing earnings expectations and reducing 2017 guidance. it is an ugly day for ngl energy partners. the stock is plummeting after the company cut its guidance and announced a quarterly cash distribution to shareholders. brian? melissa, thank you very much. so coming up, there is one street in america that more billionaires now like to call home. can you guess where it is? those views give it away but we'll tell you and bring you an enxclusive tour to billionaire row. still, d.c. on shutdown watch waiting for details on the president's plan to overhaul taxes. that should come tomorrow. a big market rally day and we're back after this.

welcome back. d.c. is still on shutdown wash, and we're waiting for the details on the president's plan to overhaul taxes. ylam mui with the latest. >> reporter: emerging signs of a deal to keep the government running after heated days of rhetoric. lawmakers from both parties believe they can reach a compromise now that they have backed off its demand to include

money for a border wall in the spending bill. chuck schumer called the move good for the country and said negotiations can now restart. friday is the deadline to seal a deal. there's still a good chance lawmakers give themselves a one-week extension to iron out the details. the president is looking to make progress on his economic agenda ahead of the 100th day in office. he's meeting with treasury secretary steven mnuchin this afternoon and holding a closed door meeting on tax reform. there's already pushback on capitol hill from reports that the white house is pushing for a 15% corporate tax rate paid for through economic growth. the tax foundation projects gdp would be a percentage point higher every year for ten years for that math to work. finance committee chairman orrin hatch said i don't know if he can get away with it. one of paul ryan's tax writers called the prospect of a corporate rate cut a magic unicorn. we'll see what magic the

president can work. back to you. >> thank you very much, ylan. here to break down the president's first 100 days and what we can expect for the next 100 or maybe even more let's bring in contributors ben white and sarah fagan. welcome to both of you. for a president who began in the period between the election and the inauguration, sarah, talking about all the things he was going to do and how important the first 100 days are, he seems to have turned a bit. now he's dismissing the idea of 100-day marker as artificial but, boy, he seems to care a lot about the grade he's going to get. how do you grade him? >> i would probably give him a b-minus at this point. it's higher than i think a lot of prognosticators are giving him. but i think it's fair because, look, at the end of the day a supreme court justice is one of the most enduring things a president does. and he has a great pick. a young man who will be on the court for a long time.

he's done a lot for the business climate in this country. this is where i think president trump has shown real leadership. the way he's rallied many companies around this notion of bringing jobs to america in the psyche of american workers and then, third, i would give the way he handled syria an "a." i think bashar assad tested him, and the united states military handled that quickly, very deftly and we have seen -- haven't seen chemical weapons used there since. a lot could happen in the middle east between now and the time ep gets to 200 or 300 days. >> where are you on this, ben? he has signed some 25 executive orders, 28 bills of one scale or another. maybe he hasn't had the big home

run s that he promised for the first 100 days but he's done a lot. >> i would give it a c to a c-plus. i would go lower than where sarah is. he cares about the first 100 days. he's obsessed with coverage of it. that's why you're getting this tax released tomorrow though they're not ready. this came out of the blue, the treasury and the west wing. overall sarah pointed out positive things he's done. i think there's a good relationship working with the chinese showing some pressure on north korea. health care was a disaster. the rollout was a disaster. now tax reform. that will be the big agenda item. if he can deliver a big tax reform package that will be a successful first term for

president trump. i would say some of the big initial things that he tried to do failed. >> put that on the gop. >> health care? >> a paul ryan/gop failure than a trump failure? >> it was a major campaign promise. the first thing i will do is repeal obamacare. they could have spent more time to come up with a plan to do this instead of trying to slam it through, without having buy-in from conservatives. he's not a lifetime politician. he's a ceo who is used to saying get this done, it gets done. i think tax reform will be the test. the hill is difficult. they have some big differences on tax reform now particularly how you fund it. can you just do a rate to 15%, which they're not going to get. ultimately closer to 20%. there will have to be some pay

fors because people will not add trillions to the deficit over ten years. they won't do it. >> the business climate and enthusiasm among business people seems to have been markedly changed. i would say despite he hasn't had any grand slam home runs here and even if he does not get those grand slam home runs in a big way this year, health care repeal and replace, that alone makes a big difference in sort of the underlying ten or antone of the economy and the markets. >> i think talk iing about it, calling in ceos, imploring them to bring jobs to america is having an impact. however, if i had one piece of advice it would be to focus on

the big thing. it's do or die for the trump administration in the first term and republicans in congress for that matter. if they're able to get something meaningful done, if they're able to go back to health care and figure out a solution, that gives them a great framework to build off his first term, ultimately we're not that far away from 2018. ultimately the president's ability to rally moving into the rest of his term. he has to focus on these things and get one of them done. they have to have health care. >> we all remember 2010, those mid-term elections and what they meant for the obama presidency after the health care bill had passed earlier that year. thank you. the four big stock calls that you need to know about today including a small cap that

one analyst says has about 20% upside. it's a name i promise you you don't know unless you work for the company and then even still you may not know. "street talk" is next.

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another serious rally on wall street. the biggest etf winners today. consumer discretionary, financials and materials. better than 1% gains up about four-fifths of a percent. the stocks you need to know about. we kick it off with amazon. the analyst wants to see improved margins in national margins. expect less upside from amazon web services mainly because of seven price cuts they kicked off

in december. so there's more competition, margin compression as they compete for this cloud business. >> i'd love to see his e-mail inbox today. amazon fan boys will not be happy. >> what does valuation matter? all of a sudden it does. stock number two is best buy. bank of america upgrading it to a buy and raising their price target. multiple expansion is primarily base d on a strong product cycl, strong online growth and streamline international operations. higher margin businesses like in-home consultation will help the business, the target price moved up to $58. $6.50 up. >> conag downgraded to a sell. they're expecting u.s. grocery price competition to intensify. think about whole foods and amazon and all those out there.

share leading brands like chef boyardee snack packs are in declining categories. they have the strength, the weaknesses. >> and pasta. nci building systems is your small cap call of the day. it's a houston-based maker of roofing and metal sheds. >> i've always wanted one. >> rbc upgrades the stock to an outperform. >> actually i do want one. and raises the price target. after meeting with management, he's confident in both the stability of in-market demand and potential growth of insulated metal panels known as imps in the business. boosts his target toed $20 from $19. 19% upside, by the way. bob will be our guest on the whole lumber impacting housing story in the 2:00 p.m. hour.

thank you. next, a real feast for your real estate eyes. inside the house of comedian kathy griffin. what she paid and what her house is worth today plus something you'll only see here on cnbc, a. and here only on cc b.k. a tour of the american billionaire's row. it's where it is. that view gives you a hint. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson.

my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass. hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade

the nasdaq hitting 6,000 for the fir time ever. some of the biggest nasdaq 100 winners. netflix and bio gym. >> time for you house pick of the week giving you a look of the some intensity homes and this week we got kathy griffin. >> necessary lds in the hollywood hills is the home of kathy griffin. >> the house is called wings, because when you look from above it looks like a bird soaring in the sky. >> the front door opens up to two fountains, stone wofred wall. one level up is a light-filled

living room with a florida ceiling fireplace. and windows overlooking the hollywood hills. >> it gives you providesy and views. >> past the dining room is the gourmet kitchen. there are also five berms. this one is kathy's massive mastmast suite and a spacious bathroom and walk-in closet. downstairs is the media room and guess rooms. perhaps one of home's controlest features is its two wrap around balconies. >> both floors of the house look out to the hollywood hills and sign and valley. it's extraordinary. >> kathy listed that half for $5.2 million. she bought it for half that much. it's been pulled off the mark by february. i wasn't be surprised it comes

back on the mark maybe at a higher price. because that's a pretty nice house and real estate in that area is strong right now. >> we gave them a nice commercial. let's take a look at america's exclusive billionaire's row which is out there in california right if. >> it is. it's called hillcrest road in beverly hills. may be the most expensive street in america. it's purchased on sunset boulevard. it's considered the best in all of los angeles. mideast recent deal is the $65 million sail of the dave tomas estate to the family that owns twinkies and bubble beat tuna. >> her dad was on the show. >> yeah. the thomas comedian built that in 1970 and family sold it for $15 million several years ago. next store, a speck home built by bruce sold for $7 million to

the finder of mines craft. that guy he won a bidding award against beyonce and jay-z. they like the wall and sofas designed by benly. now down the road -- >> thely sards. >> down the road there's a tear down and piece of land that sold for a combine $15 million, that's to a hedge funder building a new mansion on that $50 million plot of land. that just sold for $32 million. the biggest of them could be a newly build mansion built for $100 million. it's 20,000 square feet. comes with two pools, one overlooking los angeles and another one in doors.

along with a gold lamb gene knee and a gold roels royce with the house. a bigger house being built in bell air, $500 million. this house looks like a malit's over 100,000 square feet. >> wow, that looks like it ought to have a nordstrom in it. >> it's huge. what i was amazed at is -- >> smaller house in the house. >> spending time out there a lot of east coasters are moving there. the size of real estate is like nothing in the world. stick with live and super rich tomorrow at 9:00 and 10:00. >> you can uber inside that house. >> i bet you can. >> still ahead stock up more than 20% this year, contrary to its name it's got nothing to do with water, ceo joins us in the

second hour of "power." 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. ♪

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on the rally day tuesday. i'm tyler mathisen. melissa and brian here with us. two hours until the "closing bell" and here's what we're watching right now. the second huge rally for stocks, nasdaq hitting 6,000 today for the first time. a closer look at the stocks that got us there coming up. a potential trade war with canada, the trump administration moving to put a tarrive on canadian lumber, it's not just lumber. our unfair trade policies can canada also hurting u.s. dairy farms. >> what a way to kick off the week. this is a second story for gains, dow is up more than 150 points in two days pushing the dow higher today. caterpillar with the more earnings than the estimates. bio gin and netflix, so which stocks can pull the nasdaq to 6,000 over a longer term. dahm with that. >> melissa the first time we

crossed into that we saw the era. after that rerovered it back in mar of 15. after that we got back to the recovery of dot come back in the '99 era. check out some of these performers because they respect some of the bigger numbers out there. intuitive surgical up 60% during that time period. facebook shares up 80%, and netflix shares, more than a double. we know this the stock continues to soar here. amazon dot come perhaps that surprise there. knocking on the door of alphabet microsoft and all the other big ones out there. interesting enough guys, the one that's done some of the heavy lifting here check out the 360%

gain and shares in productive maintenance and video ya they specials in laptops, those names a battering that got us between 5,000 and 6,000. back over to you. >> incredible and we're going to see that and raise you as well in america. we want you to sound smarter than you are at cocktail parties. here's more staggering stats on stocks. 84 the nasdaq 100 are higher this year. the average high of those names, 14%. more das knack 100 stocks are up more than 20% this year than there are stocks that are down in the index. the question is did you miss the run if you been out of market. cnn contributor michael pharr and also with us is a new face to cnbc measuring mcgloen. and mark mcgone because you are knew welcome to the program and

to cnbc, should people with no investments in the market put their money in now or is it too late? >> i think it's in a time weird where moe tum has started to rise in earnings. so for example the middle of last year and the the year over year earnings were negative. now we're probably talking a double digit gain in earnings on the s&p 500. and probably looking at the similar type of earnings in crease by the i know of this year, so still room to grow in terms of earnings. we've discounted a lot of good news particularly in terms of political news. so we want to see that delivered as well in order to keep the market on upward path. >> and as our viewers know that discounting is a semi-fancy way to suggest if we don't mark, get

in the middle of this, the mark might be a little stretched, correct? >> yeah, i would think the mark have to reassess the earning grouts they're building in as well as the economic growth may not be as ree bust as expected. >> mashrk hit on a good point. seems like we have a lot of momentum right now. how do you grapple with momentum versus what you see as evaluation on the s&p 50000? >> all of a sudden i'm sleeping less and less well at night as prices go higher and we've become more detached from the underlying data. we had a 2.3, 2.4% rally just in a couple days from the dow. it's based on what, i guess the french election that we're seeing -- >> really positive earnings into michael especially from dow components. >> we have seen earnings in

crease but we also have economic data that is less than lackluster. so it's not awful it keeps on going high. this is a time where i think you really have to know what you own and look at the balance sheets. and to brian's earlier question is it a time when you in vessel, yes, it's a time to invest when you have money because you have to be careful because these evaluations are not cheap. >> do you think the buy is still working. what sectors are you looking at? >> we're looking sat some of the the other cyclical sectors which haven't been doing as well. i think you probably mentioned caterpillar tractor earlier today in terms of how that's popped and the first time they've had sells growth in probably two years. i'd think to look abroad also in terms of european markets and emerging markets from the standpoint of earnings growth there, maybe stronger than in

the united states. so, strong double digit types of gapes in terms of earnings. so may have to look further a field than just in the u.s. >> michael pharr and mark mcgroan nan, mark welcome to cnbc thanks for joining us. the trump administration announcing tarrives up to 20% on canadian soft wood lumber. resources are reacting to those new tariffs. >> this present round is the fifth time canada had to defend its soft wood industry over u.s. claims over the last 30 years. independent trade panel ls have repeatedly found these claims to be baseless. we have prevailed in the past and we will do so again. >> let's go to the white house now where u.s. commerce secretary wilbur ross is making of this and other topics.

>> in the u.s., it's all open market, it's all market based prices. so the province is subziez the cutting down of lumber, the technical term being stomach page and then that let's them charge a sub diced low price when the product hits the u.s. border. we have determined prelim narl that those problems, while they vary from one problem to another, in some cases are as high as roughly 25%, and on average are around 20%. so they're quite material items. so what we did -- the preliminary decision that was put out yesterday imposes those counter vailing duties on soft wood lumber from canada. those duties will be collected

starting today and they will be collected on a retro active basis going back 90 days, because it was 90 days ago that the canadian who were put on notice about this being an in appropriate process. what it immense so is the following, there is roughly $15 billion worth of hardwood -- soft wood lumber used in houses in this country, and about 31.5% of that comes from the canadians. so that's roughly $5 billion a year. 20% tariff on that is essentially a billion dollars a year. in the retrospect, the 90-day feature as another $250 million to that, on a one-time basis.

soft wood lumber as they say is the fundamentally used in single-family houses. we do not think that the price of lumber will go up by anything like the 20%, but there may be some small in crease in the price of lumber for the house. >> housing prices be in creased in the united states due to that action? >> not necessarily because you're talking such a small amount, and the biggest part that most home prices in any event is the land value not the lumber value. lumber is a pretty small percentage of the total cost of a house. >> secretary, what provoked this? as you mentioned something along with the dispute subject of conversations between u.s., the bush administration and obama administration is this part of the the dispute and is this a lefring or bargaining chip?

>> this investigation has been underway before anything came up about milk, and on statutory basis the last day we could have released the findings would have been today. so the only thing that we did do is accelerate it one day. >> but it's not realized at all do you see it as factoring in the canadian judgments about how to respond or resolve some of these other trade disputes? >> well, everything relates to everything else when you're trying to negotiate so i can't say there's no impact. but what we had tried to do was to clear the air and get this dispute out of the way before the big nafta talks when on, that was not possible to achieve and that's why we went ahead with these findings. >> secretary [inaudible] are you comfortable with how this has worked out in terms of what it means with the overall relationships between the two

countries? >> well they are a close ally, an important ally and generally a good neighbor, that doesn't mean they don't have to play by the rules. >> what do you mean by johnly a good neighbor? >> well thing like this i don't regarding a being a good neighbor, dumping lumber, and in the dairy industry there are a bit ainterrupt in the actions they took before. >> the government says those are the own fair tariffs and each time the case was brought to an international court, canada won its case. how do you answer to this? >> i had nothing to do with the prior cases, i'm confidence that this case is a good case. >> [inaudible]? >> the problem with dairy isn't that their dumping dairy products in the u.s., the problem is the reverse. they're prohibiting u.s. dairy producers from selling their products in canada, and as a

practical matter and we're looking into whether there are measures we can do to try to correct that. >> secretary, have you heard from anybody in the canadian government or has the prime minister reached out to president trump to try to convince you to change the policy or approach? any way? >> i haven't heard of anybody asking us to try to change the aapproach. you seen the public statements that the canadians put out, as far as i know that is their position. >> secretary, item curious whether this soft lumber dispute or the milk dispute points to the need to revisit to renegotiate nafta sooner rather than later? >> i think it does because think about it if nafta was functioning properly we wouldn't be having these unfortunate developments back to back. so in that sense it shows that nafta has not worked as well as

it should. >> [inaudible] by that? >> that's one of the problems. >> in other words will you try to resolve this in a not so public fashion, you're coming out of the briefing room obviously trying to flex the muscles of this administration. what would you say to a laymen out there who said why is president trump messing with the canadians now? >> it's not a question of president trump messing with the canadas we believe the canadians violated the he just a minute practice and to the degree we're correcting that it should be correcting just like steel dumping from china. >> you're trying to make a point publicly? >> we make it public all the time it's just that there's been so much gender in public by the two things, the dairy and the lumber that we felt was good to clarify. >> during the presidential campaign people following then

candidate trump i would assume his singular focus would be on mexico in terms of trade, all of a sudden we're hearing all this on canada. can you tell us why the focus seemed to shift up north? >> we had no way to know the canadian dairy people would take the action that they did, nor did we have any way to know that the lumber dispute wouldn't have been resolved by new negotiations. we tried and it didn't work so we went ahead with the statutory proceedings. >> [inaudible]. >> i'm sorry. >> is the administration contemplating additional trade action against canada? >> as far as i know there's nothing immediately contemplating. >> they say the substance of what you did is very routine, like this has been done before, this preliminary counter duties, but they said what was really irregular was the way you

communicated. is this something you're trying to do as a pr thing put nafta on notice? >> it's not routine in that a billion dollars of counter availing duties does not happen every single day. this is a quite large -- >> it happened before. it's not unprecedented. >> well we made the release the way that we made the release. >> why did you make it that way? >> it seemed appropriate under the circumstances. yes? >> thank you sir. sir in indian and america both were -- america was the largest state apart of indian, and now we had a new -- with the new and administration same thing indian has the same thing. so what is the future of the trade between u.s. and indian?

>> well u.s. does not have a free trade peemt with indian at this point. so the trade relations of u.s. and indian are governed by the wto rules, there's nothing in the action that we've taken that changes that. >> following up on what jim said, housing prices do in crease due to this what do you tell the average consumer in the united states if their price s are going up they didn't bargain for that? >> well i don't know what they bargained for but i'm sure nobody in the united states bargained for these people dumping product. it's no different whether you dump steeling or aluminum or cars or lumber or anything else. nobody has the -- >> and dumping their two different things. which is it dumping -- >> this is kindly duties. >> do you have a specific time line for when the president is going to announce its intentions

to renegotiate nafta? >> we put the president on notice a few weeks ago with our attempt to renegotiate nafta. what's been installed is getting the trade promotion authority, the so-called fast track authority approved by the congress. now with bob having been confirmed out of the committee today, and hopefully coming to the senate for a full vote very shortly, that should cure one of the objections that some of the senators had. they were concern about formally reopening nafta with the absence of u.s. trade being confirmed. the catch-22 to that they were also slow-walking the confirmation so a bit of a circumstance yar thing. but in any event that appears to be in the process of being corrected.

>> could the prove complicate getting a deal? >> everything effects everything else but the this trade issue over lumber has been pointed out. it's not a brand new issue it's been around for a while. >> mr. secretary, do you think the meetings, the next upcoming meeting of the g-7 is a month away, is and the negotiations or talkings with china about how to address north korea, are you comfortable that the north korea has not ham strung your ability to be with china on matters like this and are the actions on canada mbt also to signal to our other economic western allies and partners that if they mess with the u.s. they could face something like this? >> well, as to canada as you know being mar lar goes meetings we agreed on the 100-day program and we're going back and forth with the chooins over that 100

day program. so we shall see what comes to that. as with the action for lumber or if that matter with dairy with canada, it really has no bearing on the chinese relationship at all. >> thank you. it seems to me the object of the 25% tariff on soft lumber coming out of canada is not to raise wood prices, it's to save and create american forestry jobs and loggers who are losing their jobs right now as a result of the dumping, has the administration done a study, do you know how many american jobs are bing to be saved by the tariff? >> it's quite a bit of bored feed of lumber. lumber sells for about 38 carinas per foot. so if you take all these large amounts, they're about 47 bel board feed of lumber consumed in

the u.s. market in the given year. and part of the reason i don't see that'll be a huge drishl price coming in. the competition among the american produces remains the same. so this is not like suddenly house prices are going to go up 10 to 15%, that's silly. >> [inaudible]. >> pardon me? >> how many new jobs will be created or jobs will be saved as a result of stopping the -- >> i don't have any exact total but i can tell you it's in quite a few states, along the northern perimeter going all the way down into louisiana. so this effects quite a number of people and businesses. >> mr. secretary you're getting bipartisan support for the very

least of you actions on soft wood lumber i expect there'll be bipartisan support on behalf of the dairy industry as well. you appear to be laying the ground work for your notification to congress that you'd like to negotiate after. are we correct in reading it that way you're paving the path way here? >> well, the president announced a couple months ago that he wanted to renegotiate nafta and needless to say it's been stalled in congress. because to do it effectively you need to use the trade promotion authority. to be aware of the benefit that gives, which is when it comes to the floor for a vote it's a up or down vote, they can't amend the deal. so it makes it much more probably of getting a deal approved, that's the practical significance of it. >> so these very public action that is you're take requesting being here in the briefing is that sort of paving the way for

promoting that authority? >> well, we hope to get as soon as possible the trade pro emotion authority granted, only congress can do that. we've been consulting with the staff i don't know how many times. quite a lot of times and with the senate committee. and we hope that with the confirmation, that will remove that impediment. >> mr. secretary do you [inaudible]. >> i'm sorry i couldn't hear. >> [inaudible]. are you able to free trade activity with indian. >> oh any pending trade with indian is that the question. >> free trade. >> i don't believe that there had been any serious discussions with indian of late on the topic

of the free trade agreement. there's no inherent negative attitude on our part regarding that. >> mr. secretary, you mention -- >> you're going to have an announcement that you'll do something similar with aluminum that you did with steel last week by terms of initiating investigation into potential of aluminum dumping into the country, could you talk a little about that? >> i think the right time to talk about executive orders is once they've been issued. >> mr. secretary, this is a very high-profile action, there's a press for similar action in the past, is there a risk that this could promote retaliation opponent and we could see a trade war between the u.s. and canada? >> that would be a stimtory thing for all your readership but we don't think this is going to happen. >> so this is dairy and soft

wood and? >> we think so and we hope so and we look forward to discussions with the canadas as we get into nafta. >> any retaliatory action opponent of canada? >> it's totally canada's decision what to do. i'm not aware what we've violated to i'm not sure what it is they could do that would be a he just a minute action. >> what about a part of the tax reform package? >> well, as i understand there's been word from the tax reform package to people who are working on it so it'll be great to address that question to them. >> while we have your secretary, what about the 3% growth. is that something that you believe is realistic? >> i would hope the growth over time could get better than that. president obama's the only president in many many many that didn't have at least one year of 3% growth, and with all the

initiatives that we're dealing, the regulatory reform, the trade reform, the tax reform hopefully, and unleashing energy is no reason we shun be able to hit that if not beat it. >> mr. secretary who is dumping cars with the united states? >> no i just used that as a figure of speech. >> mr. secretary who is dumping cars to the united states? >> i said it was a figure of speech. >> mr. secretary what happened between the press conference with -- when the president said he would only be tweaking this relationship? >> well, first of all this is not a presidential decision to do the soft wood lumber, this was a decision that arose from a trade case that was underway, so it was a normal decision. so i don't think it has anything to do with the personal relationship between mr. trudeau and the president.

>> mr. secretary, finally if you or the president have any faith in trust [inaudible]. >> well, wto is a whole different subject matter. we do have questions and concerns about it. there will be wto meeting coming up in the next several weeks and what will come out of that will come out of that. >> mr. secretary thank you, in your view should the u.s. stay in the agreement or withdraw from it? >> well, now you're really getting outside my area. >> your a participant in this discussion. >> it's really outside my area. i'm having enough difficulty dealing with the trade issues rather than post erg on other people eastertory. >> yes, ma'am. >> are you concern about the renegotiations of s pa with

south korea? >> well the fifth anniversary of the south korea arrangement, the so-called chorus comes up i believe on may 4 or may 5th, something like that, so that would be a logical time to think through whether there was something to be done or not. >> do you think soft wood lumber might get michael flynn's name off the front pagings? >> the michael flynn now a trade issue. i wasn't aware. >> here's one more, way out of the box for you. >> oh thank you for that. >> if in fact the next president is elected in france who is not at all for the continuing eu, how would that effect the relationship with fraps and the eu? >> that's such a hypothetical question that i find it difficult to answer.

i think let's wait for the french run-off election, let's see who's elect requested what actions they take. then we'll be in a position to make a response to the question. >> all righty folks. if you thought the stock market was going to react negatively to protectionist talk you wouldn't know it by today's numbers. as the nasdaq the russell 2000 set all time highs. let's bring in bob whiten hall. in light of the conversation there at the white house press briefing with secretary ross over tariffs to be imposed on soft wood lumber coming in from canada, the basic question here is how much will that raise the price, the cost of building a new home if the cost of lumber in a new home is 10% or less? the amount of canadian soft wood

number that is used in american new homes is 30% or less? and the tariff may be any where from 3 to 24%, what is the increment to cost? >> nada. this is on the margin at best, it's not going to affect the cost of home construction. and on top of that which is more exciting is we're in a wonderful real estate mark the best since before the financial crisis. we have tight inventory, demand which is robust by any measure, the best spring selling seasons sense 2007. right now a small in crease in cost in lumber is a sideline, it's a paper cut. >> it's a paper cut and of course it doesn't affect it, the sales price of existing homes at all? >> that's ab absolutely correct. this is real a left field issue, it's not going to impact the real estate market or impact housing prices.

what is going to impact housing is strong robust customer demand, the per sis sentence of low interest rates. >> are there stock losers in this? >> you bet. there's companies we found in atlanta, bnc stock company which has holders called leather frame. this is a 22, $23 stock. the new product is like the i phone of building products in terms of -- we're going to see building -- this is going to be a 25 or $30 stock. >> so the big builder buy the lumber from them and it's precut so it's not cut on sight and it means it's a lot easier to assemble? >> precisely. if you have ten thou acres of land and you're building a lot of houses you need to have this product just because of what it does for your bottom line.

they got first move vantage, great management. >> how many jobs does it cost? does it end up reducing you don't have framers there -- >> right now we have a labor storage so it takes out the ping point for the builder and let people get back to work fasters. >> are there other sectors in your company that might feel the impact of lumber cost more than home builders? >> great question. the right way to think about it is we see awesome demand on the consumer side. we see minimal imput cost inflation across the landscape. if you're thinking about profitability and protecting merging, we love the r and r stocks, they're consumers of those rosario, it's going to be

fined. >> and we have to know lumber prices have gone up dramatically in the last couple months. lumber future are trading down right now. some of the builders aren't buying into the higher price any way are they not? >> absolutely. everybody knew this was coming. the 25% number isless than what people are anticipating, people were saying this could be 45, 50% so this is a step down. in the big picture this is a minor piece of news, the bigger print that's going to drive stock and e valgs, shareholder concerns is the strength of the consumer and the price of housing market which is in tack. >> all right bob thank you very much. a global company with a $13 million cap that you may want to put on your radar, we're talking about water's company. it is not a water company but it provide specialty measurement tool lgs kneed to get drugs and keep food safe. here for a cnbc exclusive.

what are you seeing in terms of how strong your in-markets are. there are certainly in-markets doing better than others? >> sure. we reported our first quarter today and the market grew on a worldwide basis. that's a strong results that's been consistent with what we've seen over the past year. in addition we saw an upticket on industrial markets which is our secretary largest katie cat gore. >> in the past when you seen that does is it well for the u.s. committee? >> we're on a reflection on what's going on in the industrial categories and that is when the product is used in a variety of material characterization. swell may electric yar and other

areas that support both industrial applications and consumer products. >> in terms of china continues to deliver double digit growth driven by demand, is there any reason to believe that there could be a slow down in that country? >> china's a terrific part of our business, it's representing 15% of our worldwide revenue and that's half of our u.s. business already. i just got back from china last week and some of the friends there argued for continued growth at least in our sector. the chinese government is looking to invest heavily in analytical techniques that support the pharmaceutical call industry as well as greater laboratory around food safety and food testing. >> what's your current taxi rate right now chris, i'm courure yo what an impocket it will be on your business? >> our corporate tax rate on a

worldwide basis is 14% and that reflects a global footprint that we have. we're only 30% of our u.s. revenue but tax reform would be a benefit to our country. we have a significant cash position overseas as well as an ability to benefit from lower domestic tax rates here in the u.s. >> what would you do if you could bring that cash back? >> we're currently evaluating that careful. it's a big opportunity for the company to revisit or strategies. today we have a very consistent program for stock buy back, but to the ex ten tax reform is prominent and brings if a lot of variety for us. >> chris great to have you with us. thank you. >> thank you. >> chris o'kon follow ceo of water. we're looking into "trading

nation" next. i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital.

. president trump imposing tariffs up to 25% on lumber entering the united states from canada. u.s. congress secretary wilbur

ross also concern about canada's dairy products. john hansen a former farmer and agricultural trade adviser. good to have you with us. >> thank you. >> mr. ross made a distinction here he said in the one case in the case of lumber, it appears canada is in effect selling sup diazed product into the u.s. markets. what he's concern about are barriers to entry are equal playing field for u.s. dairy products entering canada. what is canada doing that is unfair in your view to u.s. dairy farmers? >> well in terms of milk is more complicated than more folks might think because of all of it's various components break

into for trade purposes. but a product that was formally under very few if any tariffs has now been reclassified by the canadians, that takes that previously good-to-go product and puts them in a very highly tariff treated cat gore. so -- >> any kind or certain kinds of milk only? >> no a particular part of the milk component. and so overall the position we have been in for some time with the canadians is that they've had much better overall access to the u.s. market, which is a much bigger, larger cash driven market by far than the canadian market for milk and all of its components in total, than the u.s. dairy producer and dairy industries had to the canadian markets. >> these tariffs i guess, not

applied just to milk but to derivative products from milk, butter, cheese, ice cream, heavy cream, et cetera? >> right. some of the components that milk is broken into has been treated differently from milk protein kon sent traits to different products. so the world of dairy and all of its kpoents we'll does get complicated and it would be our hope this is an area that needs more scrutiny and it will be very helpful if we had our u.s. trade representative in place, because these are complicated detailed, but far-reaching actions. >> who knew milk could be so complicated, i suppose that shows my own -- on the topic. but let's just bottom-line the viewer here, how much is this costing american dairy farmers

in terms of financial disadvantage? >> because this is brand new, it's a little bit hard for me to just do a top of the head estimate at this point. but it certainly is a new development but yet it's also a part of what we think is kind of a overall strategy. the canadians have done, to their credit they've done a good job of tries to protect the interests of their dairy producers. in fact, better than the u.s. government has probably done protecting our dairy producers. and when you look at the numbers in the last 20 years in my home state of nebraska for example, nine out of every ten dairy producers have gone out of business in the last 20 years. >> all right john hansen, thank you very much, former trade adviser to the u.s. department of agricultural we appreciate your time today. we told you stocks would

soar the day the trump advised a plan with canada. that is exactly what's happening. bringing in dr. alexis crow. and john rutledge. alexis thank you for joining us, listen it's crazy. nothing seems to be able to stop the mark, we're launching this thing against canada, i don't understand the stock market, do you? >> well, if i did i wouldn't be sitting here, no i'm joking. >> that's why you're sitting here because you do. >> month, thank you so much for having me. looking at the nasdaq today investors are piling into stock because these are stocks that are ro solid and it's done certainty in surrounding exports. so as we see jobs coming in across the board in technology and services these are the companies that are going to continue to grow. >> so with the lumber dispute,

you don't believe that and you'll think the cash cow of technology is going to be negatively impacted? >> absolutely not. when you look at it the military enforces have been on long economic growths and jobs. so when we see these moves with canada we must act what is the long-term economic impact on growth and jobs. >> because john, if i'd asked you, say the first country trump is going to go after for trade begins with a letter "c ". >> i was going to say korea. >> you didn't do good in spelling but i get the point. >> are you worried? >> protection nichl in broad class is bad for jobs and trade. but it's super smart, you can target a tariff which is unfiltrated law milk or soft

wood lumber that hits a specific group of people. last week they had a photo on and they had the steel industry there, pennsylvania, and a few other states. this is the washington tariff, the lumber tariff, the milk is a wisconsin tariff. fundings are against advising nafta they'll lose from losing nafta. this gets it back on the hay wagon for mr. trump. we shouldn't loss sight of the economics here. racing the price of housing nobody's going to notice that but racing the price because of soft lumber will be noticed by wear warehouser, the pack and the share hold erls. >> i'm curious alexis as to why you think the technology would be immune from trade battles, especially when you're think

about trade work worth from china, you'd think they'd have a lot to lose should they make it difficult for software. >> i'm not too concern of a trade war in china. essentially a rally on behalf of u.s. companies to go to china and changing potentially the jr majority ownership rules. as you you know we run a $29.5 billion surf plus with china. so it's a continued growth with china as our own to open these trade flows. >> you can't stop it at a border the wall will close down. when you do programming and bring it in that's immigration, it's only here for a few hours during night that's immigration

you just can't stop it or trade. so focuses on hard goods is foebs on 20th industry trade by 21st century trade. >> both of you thank you. the nasdaq hitting a 100 high. trading nation team rich ross, max wolf. looking at some of the stuff you said early you got the 50-day moving anl, we shot up higher where is the path of least resis sentence up or down? >> it's going higher bring up the charts i'll show you exactly why. when we look at that short-term chart brian what we're looking at is a bullish frak for of what we saw coming out of a u.s.

elections. we came out of it like a cannon of 10% over two months. in a smaller way we've broken out from a smaller trading range ahead of a smaller election but we gotten an equally bullish break out from that trading range. when we zoom out the picture goes from great to stupendous if you will. i think we're looking at a very strong trending cyclical bull marking that's just begun. i think 14, 15, '16 are a lot like 2011. you have the stay long technology it's an overweight it's a buy how far you want to phrase it. >> i've heard of the book good to great but not great to stupendous. e valgs's going to start, get out the clean ex gauze we might

be in nose blood territory. >> we see the earning season is possibly creating some chop and disstigging between better and less. we have massive companies coming like apple, amazon, alphabet which tends to move these markets. one thing to keep in mind is the triple q is cap accumulated. so it's a small number of companies that's doing very well. it's really about all the votes r, that being said we think the and there are the place to hide, and people were afraid this growing nationalism and restriction on trade, they could be really hurt, but now it looks like they co. to be the winners in the u.s. economy and continue to have access to a world of opportunity, quite literally the other 95% of the world's

population. >> max wolf, thank you, rich ross, thank you, for more traying nation, go to tradingnation.cnbc.com. tyler? >> the dow up 250 points. who said protection ix spooks the markets? not today. eight teams battle it out thursday. we draw the draft order live coming up on "power lunch." and now the latest from trading nation and a word from our sponsor. >> overbought and oversold indicators such as are used differently depend whether the stock is range bound or trending. look to buy a range bound market when the rsi falls into slow territory and moves back above it. and sell when the obsolete drops below it.

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are about to pick the draft order live, but, first, tyler, commissioner, explain. >> okay. this is what's going to happen. now we have eight teams participating in this year's stock draft. here they are. the beardstown lady, they are not bearded, and -- i don't know, maybe some of them are. real estate mogul, he's not bearded, a power pitch all-star, and tim representing fast money. >> oh. >> hey. >> rutgers managed student fund, and todd gordon, and former giants player turned investor. >> oh. >> charles way. each team drafts two stocks, one in the first round, one in the second round. they come from a a lift of 50, the draft class, chosen by our world class data team. ? that list includes 40 names from the cnbc iq and wild cards to

spice it up. there's facebook and netflix, but beaten names like valian and macy's up for grabs. >> all right. with that in mind, let's get to the draft order. now, melissa picks the names for the draft order. here we go. first pick will go to mr. wonderful. >> he wins everything. >> mr. wonderful. >> second pick goes to flash crash gordon. >> todd gordon. >> three? >> lala land. [ laughter ] alisha's angels. >> the beardstown ladies. >> yes. >> how many did we pick? can we count? this is the fifth. >> tim seymour. >> not to be confused with see more butts. >> the stock giant. who is that? >> charles way. >> this is the last one -- >> picking seven. two more. >> the people's choice. >> i like that. >> last one, rutgers all-stars.

that's your final draft order. can you wait? you're going to have to. starts thursday. the big stock draft. check please is next. ♪ ♪ ♪

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selloff in the safer, bonds of the world, gold as well, about down a percent so -- >> and apple has gained 153 billion in market cap in 16 weeks. >> wow. >> wow. >> and the dow back above 21,000, folks. >> thank you for watching "power lunch." >> and "closing bell" starts in three, two, one. ♪ right on cue. welcome to "the closing bell," i'm sara eisen in for kelly evans. >> i'm bill griffeth. happy dna day. have you taken a test? >> no, but i read your book. >> strong earnings from caterpillar, especially, mcdonald's, and dupont powering higher today. the nasdaq above 6,000 now for the first time ever, as you see the dow is above