wlk. >> josh brown, just a message for those long apple, if they react negatively to the quarter in the after hours, don't panic. don't follow the leader. >> nvidia. >> disaster with amd. good stuff. good seeing you all. see you soon. "power" starts now. thank you, scott. i'm michelle caruso-cabrera. here's what's on the menu for "power lunch." auto sales hitting the brakes. gm, ford, chrysler, all those shares are tanking because of their latest numbers. and then twitter, meanwhile, it's popping and that's thanks to comments from mavericks owner mark cuban. his bullish take on tech and his bearish stance on jobs. straight ahead. all that plus president trump's budget directors are expect ed o speak at the white house briefing in the next 13 minutes. we'll carry his comments live. "power lunch" starts right now. and welcome to "power l

lunch." i'm melissa lee. stocks are holding steady. the nasdaq hittinging yet another record interday high today. tech and industrials the best performing sectors consumer staples and financials. they are the laggard. down 2% on a big miss, mastercard is up two and mosaic down 7% after missing the top and bottom line. brian? >> all right, melissa, thank you very much. and i am brian sullivan. we are coming to you live from day two of the milken global conference in beverly hills, california, speaking with the world's top thinkers on the market and economy. politics, which is encapsulating everything today, eric cantor being former house majority leader, chris aailman and dr. o.

>> welcome, everybody. as michelle mentioned twitter popping this hour thanks to comments from billionaire investor mark cuban. it's up about 4% right now, and we will get to those comments in a moment. first the air is coming out of the auto bubble, it seems. gm, ford, fiat, chrysler all taking big hits today. let's go inside the numbers now with phil lebeau. are these numbers as soft as they seem, phil? >> reporter: yeah, they're soft, tyler. we're not look iing like a huge tumble but they are slowing down. take a look at the numbers for april. you mentioned fiat, chrysler, gm and ford reporting weaker than expected sales. a negative month for toyota which was the only automaker of the big four that actually posted sales that were not weaker than expected. the numbers within the numbers, that's what worries investors. look at the inventory levels right now. they're close to ten-year highs. at general motors they have 100-day supply of vehicles.

now some of that is because they're building up their supply base when it comes to certain pickup trucks as they transition later this year but no doubt that it's taking longer for vehicles to sell when they're sitting on the dealer lots. that's been measures. we're looking at levels that you have to go back to 2009, 2008 and finally, guys, incentives. more than $3,300 for the average incentive last month in order to sell a vehicle. that is close to a record high. so it's those numbers within the number that worry investors and a lot of people are saying at this point do we see production cuts in the second half of the year? we're not looking at a huge falloff in auto sales but enough of a falloff that people are going to say, okay, let's start to see the cuts in production. >> you can see the numbers playing out. phil, thanks so much. now to the comments sending twitter shares higher now. listen to what mavericks owner mark cuban had to say to bob

pisani just a short time ago. >> the key to artificial intelligence is data. and twitter hadn't been able to harness the data to be smarter how they deliver tweets and use information and how they deliver ads. now they've started to hire the right people, are starting to get smarter. you see that in the results rather than chronological, things that are relevant that make a difference. >> twitter shares are up about 25% in the last week alone. they're high er by nearly 5% today. let's bring in the analyst at morning star. what do you make of what mark cuban said there in terms of their ability to harness the data that they have? what's he talking about and what does it mean for twitter? >> actually we do agree with him. it's the data in order to enhance their machine learning capability on twitter so basically they analyze the user interaction, user engagement over what topics, what times during the day and machine learning technology comes up with the best ad to present in front of you and that helps them

to monetize their users. >> it's also changed me the tweets that i'm going to see, the content has changed. is that true? >> it is. the content in addition, of course, to the advertising but the content you'll see absolutely will be more relate ed to what you've shown your interest to be based on your behavior and your user interaction on twitter. they're doing that to make sure that they keep the users on the twitter platform again to attract advertising dollars. >> if the user base doesn't grow, though, ali, does the machine learning get any better? isn't it only as good as the data you have? if your user base is going to remain static which it essentially has, how much smarter can the machines get for twitter in order to enhance the experience, increase engagement, attract users back?

>> that's a very good question. we think it's a combination of two things, right. it's not only the user -- the growth of the user base but the growth of the user interaction and/or engagement. you have a lot of devout twitter users that continue to interact and engage and spend time on twitter. the problem is user growth. yeah, that's one of the reasons why we've kept our valuation on the company or fair value estimate at $17. we're still wait iing to see mo consistent user growth. so that does make a difference. >> you prestaged my next question. you have a hold on it. a three-star rating and your fair value is at $17 and the stock is at $18. what would make you change your rating? >> well, a few things. first, we want to make sure that these guys get rid of the tele part, the retargeting side of their advertising business, pretty smoothly. second, we want to see more effective monetization of the new content they brought forth

or the agreements they signed with some publishing and content providers earlier this week. and third consistent user growth going forward. once we see that we think that possibly the valuation could go up. of course the stock has performed well. we've had the $17 fair value estimate and it's gone up from $14 and change to where it is now. >> not the a lot of people saw a 23% change including yours truly. >> thanks, ali. >> the street is focusing on the iphone 8 which launches this fall. our next guest is the most bullish analyst on the street with $185 price target, believes apple remains among the most underappreciated stocks in the world. brian, great to see you. there are more and more analysts who agree with you in that there could be delays to the iphone 8. we have deutsche bank coming

out, south korea's kgi securities saying that there are going to be supply constraints in the channel that could delay the launch of the 8. does that matter? do we need to hear about an on time launch on this conference call? >> we're undergoing a major shift in apple. we're still in the very early stages. the iphone 8, the 5.8 inch comes out in november or early october or september, i really don't think it matters. there's really four pillars driving the stock. iphone 8, whatever the timing is, valuation, capital return, and a lot of media buzz about new innovations and i think that it will keep driving apple stock. >> so in terms of some of the things you're list ening for, obviously sales of the iphone 7 should start winding down ahead of a new launch. so what are we listening for? do we want to hear about china? in the last quarter tim cook said remained a challenge for the company. >> so china was down 12% last

quarter, down half that in constant currency. i think it will probably be down anywhere between 8% to 12% this quarter. you have to remember the comps are impossible. china should start to grow in fiscal '18. for the full year fiscal '18 all people want to see is they got by an okay quarter, nothing around margins that was concerning, i think the outlook may be soft. i don't think it's a huge deal because these four pillars are what people are looking forward to. >> iphone 8 sales, capital return, which i assume you mean the repatriation of overseas held cash, $250 billion. of the three, how do you look at that one in particular and what do you think of the best case scenario doesn't materialize and stays sitting there overseas. is it a catalyst, a nothing, what?

we'll hear about the program. that's $250 billion through fiscal march of 2018 and they've used up $201 billion. i'm hoping for a higher dividend and also obviously we have repatriation on the table and they have about $230 billion of their $246 billion is overseas. regardless we're going to get an update i believe on their capital return and i think investors want to own it for that. >> brian, good to speak with you. still ahead, president trump's tax reform plan has been tried before in kansas. the question is did it work? analysis next. first, back to brian in beverly hills. brian? >> listen, tax reform, a lot of discussion here at the milken conference about that, infrastructure, a lot of discussion about that. will we get anything done?

will the gop deliver? we'll find out. we'll talk about the global deal making markets. our guest live right here from the milken global conference after this this short break. who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

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and have been tried before in kansas. it didn't exactly go according to plan. ylan mui is live with the story. ylan. >> reporter: tyler, that's right. the white house is taking a page from the playbook here in kansas where the governor cut the rate all the way to zero. that was supposed to be a shot of adrenaline that paid later on in growth but instead has blown a hole in the state budget and the hit to schools in particular is turning public sentiment against these cuts. we don't have the resources to pay. that's been a huge challenge. >> reporter: a third generation family farm that makes food processing equipment. they say they've saved $18 million from the tax cuts

reinvested in new it technology and new jobs and sam brownback told me that's evidence that his policies are working and the white house should be paying attention. >> if they want to grow jobs and want to grow small business, these are some of, i believe, the best income tax cuts you can make. >> reporter: kansas lawmakers will be debating whether or not to repeal the tax cuts so, guys, we'll see how much longer the kansas experiment can last. >> you talk about the hole in the budget. is that because revenues fell or did spending not decrease enough? what happened to tax revenues from when these tax cuts were implemented to now? >> reporter: revenues fell substantially, michelle. supporters say the government spending cuts that were supposed to go along with the cuts didn't

happen. there's a policemen on both sides of the balance sheet. >> thanks, ylan. back out to brian in beverly hills at the milken conference. brian? >> thank you very much. get this, earlier president trump tweeted out the following message. the reason for the plan negotiated between republicans and democrats that we need 60 votes in the senate which are not there we elect more in 2013 or change the rules to 51%. this is what is getting attention. the country needs a good shutdown to fix the mess. house ma rt jojority leader. eric? >> i think the reality this week is there is no shutdown. this president likes to keep

people offbalance and there's a lot of uncertainty. there's no shutdown this week. a lot of people obviously don't spend a lot of time steeped in the rules and the procedures in washington. i think that's reflective of even the president saying, hey, i'm not from that world. i'm not used to those things. it doesn't sound right. >> all right, tax reform, infrastructure, all these things. first off, let's start with tax reform. will we get it? >> i think we're going to see tax reform and i think we'll see health care reform. >> what does it look like? it's not going to be one page. >> you know that health care has to get done in order to get to tax reform. >> why? >> because, number one, politically we republicans have been promising as a party to get rid of obamacare for the last 7 1/2 years.

>> the president has moved past that. >> if tax reform is pursued there will have to be another budget taken up and if another budget is taken up, it removes the privilege of 51 votes health care enjoys right now. so if a decision is made to go to tax reform, then you're not going to see health care repeal and replace which i think you will need to see in order to have a delivery on the promises that have been made. >> need to see and will see are different things. will we see health care reform? >> yes. >> it's not dead. >> no, it's not dead. it's just going to take some time. everybody is very anxious because the thought was we were going to see that very quickly. washington, unfortunately, doesn't work that way. >> no, we've learned that. infrastructure also a huge topic here at the milken conference. there's a lot on the gop's plate. are we going to get an infrastructure as well? >> infrastructure is something that will demand 60 votes. as per the president's tweet,

items that it demand 60 votes are in accord with existing senate rules. now the president in his tweets suggested that perhaps if we can't get more senators elected -- change the rules. that's what he's proposing. >> do you think we'll get it? we've interviewed them on cnbc, some democrats are onboard with infrastructure. do you think we will get the 60 votes relatively easily? >> i do because infrastructure is not as partisan of an issue but, also, if infrastructure happens at the federal level we really need to go and see some implementation at the state level. i mean, if you look to see some of the funds that are talking about potential ly investing at this conference it's about risk -- it's the risk premium and the political risk associated at the state level and the federal system that we have that we've got to address. >> so you're hopeful we do get it done. it's going to happen. slow. >> it's all about sequence. we have health care, tax reform and infrastructure. >> eric cantor, it's a real

pleasure to see you. >> melissa, there you go. optimism still that these things, tax reform, health care, infrastructure will indeed get done. >> all right. see you soon, brian. check out shares of a in mgen. stock is up 11% but plunging 8% in the past two months. that is ahead for the company? the ceo lays out his growth plan in a power lunch exclusive next.

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lunch." developments with molina health care, those shares up by about a percent. the company's board has dismissed the ceo and cfo, the two of them together, again, ceo molina after what they call, quote, disappointing financial performance in the company. the chief accounting officer is now taking over the role of the interim ceo and cfo, that's joseph white. they -- the board thanks them for their service. the molina brothers were second generation managers of the company. their father had founded molina health care in the past. melissa, an interesting development from molina health care, a big insurer tied closely to medicaid. back to you. >> this stock has halted. the print there is before it stopped trading on this news and this is a stock down 11% over the past three months. thanks, dom. speaking of health care,

over to meg terrell. meg? >> thank you so much. we're joined at the world medical innovation. bob, thanks for being here. >> happy to be here. >> the focus is cardio vas scholar disease and you have a big new cholesterol drug people expect to be a big moneymaker but it hasn't been taken up and paid for as quickly as investors hoped. you presented some data showing that it reduces heart attack risk. have you seen a change from insurers based on that data? >> maybe take a step back and reflect on what we learned from the large, robust outcome study that we recently reported on. and, as you know, the data was robust and demonstrated we were able to lower ldl, the bad cholesterol, and as a result of profoundly lowering that bad cholesterol we were able to significantly reduce heart attacks, stroke, and the things

stents and coronary bypass surgery are required. if you look at the data after 12 months those subjects experienced a 35% reduction in heart attack, a 24% reduction in stroke and 28% reduction in the need for coronary vas scholarization after 12 months on the drug. so the effect of this medicine is quite profound and that travels in tandem with the fact that it's so significantly lowers ldl leading cardiologists to observe that lowers better or some have said even here lowest is best. so we're excited about the data and what they it tell us about how to reduce the risk of these events in patients who are at high risk and we're excited to educate patients and physicians and payers and others in the community about the long-term benefits of adopting an innovative new medicine like this. >> have you noticed a change even in the last month since the data came out? >> we've noticed from prescribers and patients and then in addition from the payer

community is a recognition that these are important data and that these data need to be incorporated into the thinking for guidelines and the thinking for utilization management by the payers and so we are seeing a recognition that these are clinically important data for what is the most troubling disease in so ciety today and that's cardiovascular disease. >> you have a lot of cash particularly overseas. what should we expect from amgen in terms of buying? >> we have a strong balance sheet and we have a focus in six therapeutic areas. we will continue to look at ways to invest in our business across each of our six therapeutic areas and while we have a strong balance sheet we recognize at the moment that valuations are pretty stretched at least on the targets that we might be interested in acquiring so we'll be patient and discriminating and focus on earning return for our shareholders not just the shareholders of the targets. >> bob, we'll leave it there. thank you so much for joining us. >> thank you. >> melissa?

back to you. >> thanks, meg. you're looking at the white house press briefing room. we're going to bring you that when it happens. first, though, back to brian in beverly hills. brian, what's on tap? all right. so what is on tap? the stock market is up in the last year, michelle, the bond market has done well the last year, the vix, the volatility index is below 10. everything is calm. does that make one of the biggest investors in the world nervous? we're going to find out with chris ailman right after this. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

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hi, everybody. i'm sue herera. iowa governor terry brans it tad to be the next ambassador to china. and he said china can do more to push north korea to curb its nuclear program. >> there's other things they can do diplomatically and economically to send a clear signal that they as well as the united states and other countries in the world do not

tolerate this expansion of nuclear technology and missiles. >> the consumer products safety commission is urging consumers to stop charging and using lazy board whoevhover boards. they say it cause add fire and took the lives of two young girls. a busy highway in minnesota was closed for hours as crews worked to clean up a massive corn spill. a truck carrying the corn rolled on to its side on highway 169. and that's the news update this hour. what a mess. melissa, back to you. thank you, sue herera. a check on the markets. they are holding steady. the nasdaq hitting a record interday high once again. coach, martin marietta, cummins. coach soaring double digits. more on this coming up. >> back to the fresh prince of beverly hills it at the milken

conference. hi, bri. >> tyler, thank you very much. i was thinking -- i was trying to come up with a witty introduction but then i looked at the corn spill and i thought that's kind of a metaphor for the market, there's just money like corn going everywhere. stocks, bonds, you name it there seems to be capital out there. does that make chris ailman m nervous? it's kind of funny, chris -- welcome, by the way. >> thank you. >> the corn is doing this on the highway and i see money going everywhere. it looks like capital is coming out of the woodwork and buying up every asset class. the vix is below ten. the fear gauge is super low. does any of this make you nervous at all? >> brian, i had hair like you a month ago. >> look what happened. >> i'm totally nervous. >> i will be there soon. >> not the that bad. and you hit it right on the head. i led a panel this morning, the global capital for milken from

gpif, $1.4 trillion. at $200 billion i think i'm hot stuff. i'm like dirt on the floor. no, you're right. saudi arabia was here sunday -- >> you get my point. capital seems to be going everywhere. >> absolutely mreplentiful. >> that makes me nervous. should investors, should your pensioners be nervous at the all? >> no. their pension is secure because it's a guaranteed defined benefit. if i was in a defined contribution plan i would be cautious. what i would do is rebalance my asset allocation. >> to what? >> to a 70.30, 80.20. if you're in a 401(k) you've only got the equity to invest in or bonds. i can go into private equity, into real estate -- >> for our viewers that can't do that you would think even right now 70% is a good blend? >> depending on your age, i think so. but be global.

don't just be in the usa. the u.s. economy, like we saw last week, is not the strongest growing in the g-7. you want to be globally diversified. >> do you think that europe is a better bargain than the united states right now? we've heard that before. >> price wise, yes. obviously europe has got a lot of issues. but if you look at a graph, and i'm long term, you know that, so i'm going to back up and look at the last, say, seven years. the usa is priced to perfection. >> right now it is? >> oh, yeah. the nasdaq is at an all-time high. the dow is close to it. but if you look at europe, it's not recovered as high and the same thing in asia. so we think that while they're priced well they're still attractive. >> the question is it if we are priced to perfection, as you say, can our stock market hang on for a number of years, or do we have to decline at some point? >> no -- >> everybody is asking. >> no. >> when do we go down? do we have to go down? maybe we don't. >> you can't time the market. you want to be a steady investor over time. let the hedge fund, let fast

trading and cramer try and time the mark. i'm not going to do it. will it go down? yes. the market has recessions. we have bear markets about once every four to five years. we're a bit overdue but bull markets don't die of old age. tyler mathisen and i have talked a couple of times. you have an index and then you invest long term. very smart guy. >> i get to work with him every day. it's great. >> isn't that amazing? you want to stay invested in the markets. you don't want to time it. i love cramer. he has lots of ideas. if you're a trader, trade. if you're an investor you have to stay invested. >> leave us with this, what's the last thing that you have newly bought? is there a new position of any size you're coming into that looks attractive to you recently? >> letters -- e, s, and g. >> enenvironmental, sustainability and governance. >> we invest with companies that are thinking long term, looking

at their business risk the next three to five years, not look at the next 90 days. forget short term. think long term. >> chris ailman, a real pleasure. thank you very much. i'll send it back. tyler, he's singing your praises. >> i love that. thank you. say hi to chris for me. he knows that he and i are kindred spirits with respect to indexing. i think it's the core of the smart portfolio. thank you very much, brian. to dom chu with more details on what's going on at molina health. >> it's not any of the molina brothers, any of the catchers in major league baseball. i can tell you a report that in the last few moments shares of molina health have resumed trading. remember we told you it was up about a percent prior to the trading halt. it is up about 16%, 17% on heavier pickups in volume here. it was up as high as near 19% to almost 20% on the heels of that announcement that molina health care's board of directors has, in essence, fired its ceo and

cfo to molina brothers who are second generation owners and managers of the company, both of them big shareholders north of 2% stakes in the company. so not unsubstantial in any way, shape or form. this was for what the board calls poor financial performance. those shares -- i should point out, guys, that they have postponed their annual meeting which was supposed to take place later on this month again from may 3rd all the way to may 10th, one week later so a postponement of the annual meeting on the heels of this. we could expect questions and fireworks at the annual meeting. back over to you. >> got it, dom. thank you. the btig charity day is in full swing with some heavy hitters including derek jeter and a-rod. >> that's so brian sullivan. >> get it? our own heavy hitter bob pisani is there live. >> reporter: we had so much fun. no place else that i ever go do you get this many celebrities in one room, but they're trying to

raise money for charity. that's what makes it fun. i spoke with derek jeter about raising money to help kids with drug and alcohol problems. i spoke with alex rodriguez about the boys and girls club of america. i spoke with steve, the actor from boardwalk empire, about the fireman fund in brooklyn. he's a brooklyn guy. i spoke with kristen davis, charlotte from "sex in the city." she's the representative for the high commissioner for refugees about refugee problems. she goes all over the world. and i sat down with mayor mike bloomberg, the former mayor to talk about his new book he had out, climate of hope. he's talking about climate change. and here is an interesting comment that he gave talking about president trump reversing president obama, obama's climate initiatives and how it won't make that much of a difference, surprisingly in the long run. >> i hope that he changes his mind when he listens to his daughter who is a big advocate of staying the course and even if he doesn't change his mind, it's the private secotor that hs

reduced greenhouse gases. we are two-thirds of the way to the targets for 2025 without any help from the federal government. so we're going to make this regardless. >> reporter: and i had a long talk with mark cuban. mark is never short of opinions on anything. the first thing on his mind was artificial intelligence which he insists is going to change everything. >> i don't think people realize the impact of art figures intelligence, deep learning on the performance of these stocks. they are going to accelerate. companies that know how to harness new data and take advantage of them, apple, netflix, facebook, google, amazon, twitter, they're crushing the world. >> reporter: and then out of nowhere he brings up twitter. he hasn't been very complimentary towards it in the past. suddenly i've changed my mind, he says, they've been getting their act together with artificial intelligence saying they're harnessing the data to

be a lot smarter in ad delivery. that moved the stock up almost a dollar. it's a great day raising probably $5 million down here. they have raised $40 million in the last 15 years for dozens of charity. helping reverse some of that perhaps negative image that wall street has. >> do they donate trading commissions for the day? where do the donations come from? >> reporter: they all come right through the door, everybody gets introduced and right there, the ceo sits in the middle there and they all do an honorary trade and the company donates a percentage of the commissions of their whole day trading to each individual charity. >> did you ask derek jeter about the marlins? >> reporter: he said he didn't have anything more to say about it. i said that's a lot of money. he's only putting up a fraction along with jeb bush. rumored to be putting up $25 million apiece. we tried to get him to fill in

more details but he didn't take the bite. a lot of intense negotiations are going on. the big question is who is going to put up the rest of the money for that? that's what the negotiations are right now. >> i like the response when you asked them. do you two really not get along? what, is this the history channel? >> reporter: he made quite a splash. alex went to the met gala which is quite an affair in new york. >> i would have asked him if he made her dress like she did because she was covered from head to toe. you can't see anything on j.lo. it was a demure dress. >> are dating? >> tyler. >> are you in the news business? >> did you hear what he said? he looked at me and said, what is this, "entertainment tonight"? it was a funny moment. >> people want to know, bob. >> thanks, bob.

look at coach. why not, look at coach, a bright spot in the retail wreck lately. the stock rallying 10% on earnings. that's the kind of spike you like to see if you own company shares up more than 20% this year. how much higher can coach go? we will discuss that. but first rick santelli at the cme for today's "bond report." hi, rick. >> reporter: hi, tyler. interday of ten shows you everything you need to know. we rallied a bit pushing yields down. o one-week chart really hard to break through these kind of upper 2.30s. it doesn't seem to happen. the dollar index going nowhere quickly. really stuck in the mud, a fairly weak level and finally everybody is looking for the second round of the frieench elections. the markets do have an opinion here. if you look at a year-to-date chart of the spread relationship between bunds it's tightened up. tightening is not in le pen's

favor. "power lunch" will return.

shares of coach soaring today following an earnings beat and continued m&a rumors. courtney reagan with the details. >> coach's latest quarter is a case study in brand management and retraining shoppers. the handbag maker beating ebbs inspectations and reiterating guidance as it continues to pull its pro detectiduct out of 25% s it's been in and cutting back on discounts across the board. total north american sales did fall 5% due to cutting at department store inventory and from easter calendar. 50% of its north american handbag sales were in the $400 or up category.

that's an increase from 40% last year. less coach product will be sold in department stores, 50 coach stores were opened or remodeled during the quarter and the handbag maker plans to open 100 more by year end. executives wouldn't comment on kate spade or jimmy choo speculations but did say acquisitions remains coach's second priority behind investing in current brands. coach has a new marketing partnership with selena gomez. they talked about billions in social media, billions of impressions, a new ad campaign will hit in july and a new handbag she created will be available this fall and she is a major influencer in both the world of celebrity and social media. >> controlling the amount of product out there is crucial, right? these retailers learn over and over the moment they become y ubiquitous nobody wants them anymore. >> i wouldn't put coach as luxury. >> this is aspirational luxury.

the same idea. >> the same branding strategy. really to see the sales 55% for north american handbags $400 and up is impressive. >> a big improvement. >> it was 40% the year before. stick around, we'll bring in simeon siegel who has a buy on coach and a price target. good to see you. is shrinking sales and making more profit a long-term winning strategy? >> for most. it hasn't been yet. the question has been you're hearing vendor after vendor, apparel company after apparel company, and store after store say we need to get smaller and we need to get healthier. no one has done it. coach just did it. coach is working their way through a turnaround and to their credit they've now set them up where you're seeing the proof in the gross margin. at the end of the day if what it means you get rid of the tail of your distribution and you can elevate your product and those price points, that's where you want to be in this new norm of

retail. >> so can they keep doing just that, following that playbook? that's number one. number two, the stock -- we have to go to the omb director at the white house. sorry, simeon. if i can't do this but today is my anniversary, so my wife is actually watching this for a change. hi, pam. i love you very much. it's mip y 19th anniversary. we have that out of the way. i would love to be home. when you can't be home for your anniversary. >> hopeless romantic. >> most of you who know me know it's a meiracle i've been marrid to anybody for 19 years. we're here about the bipartisan spending bill. i want to focus on that description first before we go into details. a lot of folks have asked us over the last 24-48 hours with republicans in charge of the house and the senate and the white house why do we need a bipartisan spending bill? and one of the things i think is not being discussed as openly as

it should is that this is one of those bills that requires 60 votes in the senate. it's not like the health care bill. we have to have at least eight democrats support this in the senate which is why we've been working with democrats from the very beginning. yes, we could have passed a republican bill only out of the house, but it never would have passed out of the senate. and then we would have been accused of not being able to function and run the government. so there's a very good reason we're working with democrats on a bipartisan bill. we must. until those rules change, that's the environment we will continue to operate in. the dems have been trying to claim victory on this, which i think is a strange way to look at a bipartisan discussion. if you're in a bipartisan meeting it's unusual for one group to walk out and start spiking the football, we won, we killed the other guys. it doesn't bode well for future discussions. but since they have raised the issue and try to cast this as a democrat victory, it's important

today and only fair to show you what is really in the bill and how the president actually cut a tremendous deal for the american people. at the end of the day that's who we think won in this discussion and this negotiation. not the democrats or the republicans but the american people. first, the list of things that republicans got in the negotiation, you've heard a bunch of different numbers about the top line, defense number i've heard as low as 10 or 12 in the half billion dollars. the number is $21 billion. that's what the defense spending is. $15 billion in a stand-alone overseas contingency account and another 6 billion. this is on ominus bill which means it's made up of different bills. one of the the bill that's becoming part of the the omnibus. in that bill it's -- so you take

the 6 that's in the underlying bill. the $12.5 billion number is right. the $15 billion number is wrong. you could talk about a number as high as $25 billion if you want to compare it to fy, 2016 but you can never go below $21 billion in that analysis which is a full 3/3 of what we asked for in the beginning. we'll talk about the dh s number, the $1.255 billion spending. the total dh s number by the time we're finished will be north of $22 billion. the largest funding level of border security in the last ten years is what well-have at the end of this process. that's where this negotiation have taken us to the largest spending on border security in ten yearsism we'll go over the details on that in a second. minors health.

one of my favorites. one of the democrats walked out of the room and say they protected the miners health. the president has asked me from the day i got here is a way to fix the miners healthcare they have in appalachia. and we've been waiting for an opportunity to give i want a gip discussion to we can get something in return. we marked this as a victory in this particular bill. every single second an amendment protection we want requested the democrats wanted to get rid of it still in the bill. ever singed pro life protection that we wanted in the bill and the democrats out is gone. the folks in this room and that watch us today understand we broke parity. for those have been covering this area for a long time know what that means. there was an unwritten deal on capitol hill, which is for every dollar of defense spending that the republicans wanted they had

to give $1 worth of non-spending into the democrats. that was the deal president obama was able to cut during his last year in office. we got $21 billion of defense spending. we didn't go dollar for dollar, we gunshot a dollar spending and only gave 20 cents worth of discretionary. that's a tremendous and huge win for a negotiating standpoint. think opinion from for a second, we've gone from a dollar to dollar to a dollar plus 20%. the miners health is included in that number so some of the stuff we gave away supposedly to get the defense spending was stuff that we liked in the first place. what didn't the democrats get? there's no obamacare bail-out punish money in this package. it is not there. what the democrats are telling you about that is false. there's absolutely no language in this bill that requires us to

make any obamacare bail-out payments, any c s r payments of any way shape or form as a result of this deal. why are the democrats saying that, because it's what they told their base they would deliver and they failed to do that for the base. that's not in the bill. there's no new money for per torey koe. the democrats crying out they got $295 million for put torey koe. not a penny of it was new money. all we agreed to do was let them move it from one place to another did not cost the tax payer a penny. they wanted none money they wanted to bail out we wouldn't give it to them. we gave them money already appropriated and spent. at the last minute they through in a demand for renewable substance for wind and solar, we kept those out.

what they really didn't get is this and this is what they wanted, they wanted a shut down. we know that. they were desperate to make this administration look like we couldn't function and governor. we know that a large part of their base, especially their left-wing base wanted a shut down and didn't want us to cut a deal with us. that's why i think you see them youing about their success, they made a tell with president trump and he did a tremendous job. we're talking about more money for defense, more money for border security and school choice, another thing that we got. those of you that were here in march and saw me introduce our first budget of our budget blueprint saw me talk ab the president's priority, defense, border security, school chies. the president delivered on hi promises and got his priority funded and that's what the democrats don't want you to know. they want you to think they won,

the american people won here because the president simply outnegotiated them. if i can bring the pictures up now that would be greet. you've heart me talk a lot over the course of a last couple weeks there's no brexit mortar for all this. we built this and we're going to build this. there's several hundreds of millions of for us to replace psych lone fencing with 20-foot high steel wall. there's $700 million in the bill for us -- can you bring up the other photo please. there's several hundreds millions of for us to build levy walls. we need levies in order to provide the protection of the southern border that we need. we are building this now. there is money in this build to build several hundreds of millions of of this to replace this. that's what we got in this deal

and that's what the democrats don't want you to know. this stuff is going up now, why? because the president wants to make the country more safe. this doesn't stop drugs and criminals from stopping the border. it doesn't stop hardly anything from crossing the border, this does. and that's what we got in this deal and that's why we're exciting about the opportunities we have to follow through on the president's promises to secure the southern border. unless we have the other picture i'll take a couple questions. >> how do you say fence will keep drugs from coming over the border they tunnel underneath the border -- >> this is the border -- this is the wall by the way the dha say they accept. this is what dh s wants, why? because it works better. you can tunnel under anything, i'll answer you question okay, you can see through this one it's safer. we have this in place now and we do it's safer for our border patrol agents. you can talk to the dh s about

the details but there's been a reduction in the tax on our border patrol agents where they can see through the wall because no one throwing anything over the top at them. this is what dhs wanted. t also half of the cost. it's a huge win for border security. >> the president tweeted out this morning, looking at the fiscal year 2018 a shut down may be what we need to clean up the budget mess. do you agree and can you expand on that? >> identify been through a couple shut downs. let me answer that question this way. that's a good discussion to have in september. i think the president is frustrated with the fact he negotiated in debate with the democrats and they went out and spike the football and make him look bad. i think it's a terrible posture for the democrats to take. if we're going to prove to people that washington is going to be difficult and they do that to this president i would have taken offense at that.

that doesn't surprise me at all that his frustrations manifested that way. we got a lot to do in september, i don't anticipate a shut down in september. if the democrats aren't going to behave better than they have it may be inevitably. >> how do we shut down and clean up the mess? >> look, there's a lot -- shooor our later we'll have to start doing something different. i think i can make the argue and i just did, that we made something dramatic by getting rid of parity, by going the dollar to dollar and getting rid of something new. that may help us change a little bit, but if we get to september and it's still business as usual and it takes a shut down to change it i have no problem with that. the gentleman in the back with the red tie. >> thank you. happy anniversary. >> thank you very much. >> 87,000 people at united

airlines focused on this so. >> a quick question, are you worried there's going to be regulations pushed because of the this incident whether it's with overbooking or the reservation change fees? >> the answers on that we're going to have to hold. thank you very much. >> wait that's a simple question people want to know oscar. >> i don't know. the sense in the room was one of an moe in addition to get your stuff together and you can avoid us which i think is fair. if we done do what we said we should be able to stand up to -- >> oscar munoz talking there and he's being ushered away by the cooperate attorney for american airlines. the message is clear, you get your act together or there's going to be further regulation. oscar munoz leaving the committee here on capitol hill back to you. >> we heard you back and clear who tried to push back on the pr woman who didn't want him to

answer. good job. we're bringing in gordon. gordon i don't know how much you seen of munoz this morning testifying, are you satisfying that the industry's going to be able to avoid regulation because of the incident that happened on united or not? >> oh yeah i thought he did a very very good job, sincere straightforward. and his remedies were good ones and they've already been adopted by other airlines. so i think the market will drive the changes that are necessary and then thai begun to do that already. >> we heard from e choe yesterday she was interviewed by brian at the milk conference, it sound like it was going to be a tough job to get this administration to try to impose new regulation, so the anti-regulation position of this administration already on your side of the industry before going into this. >> well, you'll remember as a democrat jimmy carter that deregulated, and they're

deregul deregulated the day you couldn't tell it by congress acts. every time they throw a guy out of a bar they don't put it on t.v. >> the guy wasn't drunk, he paid for hi seat. i mean you know this is being thrown out of a bar is not the same. >> well throwing out of burger king i'm not trying to be smart about it this was wrong and he admitted it and addressed it directly. and i think he apologized as he should be. so it's a very rare occurrence and that's why it makes the news. >> explain to me gordon if you wouldn't mind, i remember we were talking about this and we all asked you the question, how come united in the moment just didn't keep raising the price of what they were willing to offer to this passenger or other passengers to get off the plane. and i thought i understood you

to say they couldn't because they were constricted by rules, and i took that to mean federal rules that limited the am they could pay. now united is saying, shoot, we're going to go up to 10 grand if we have toto avoid this kind of thing. can you untangle it for me. >> tyler i think it is their own rules. they have their regulations. it's hard to run an airline around the world from a headquarter's building. here's the chance where the rules didn't fit the situation and quite frankly -- >> so it wasn't a federal rule it was an internal restriction of some sort? >> that's right. they have guidelines and rules that you know if you want to keep your job your follow these rules. >> go ahead finish your thought. >> well i'm just saying so they ran up against their authorization and then reverted to -- >> so i gunshot to know, i got to know and i got to believe you are hearing what is the skud l

butt on what dr. dao got paid in the settlement? i've heard $3 million. you must know. . you got to know you got to know. >> i'd be the last guy they told. >> to you to get the scandal off of their front page and get that video to be retired permanently, how much is that worthy, $5 million, 3 pl$3 million, as o of an airline you must have an idea. >> whatever it takes you should do it. they were clearly wrong and apologized. they have insurance so i'm sure they topped and made up the difference what the insurance company would pay. they say it's worth more to them to get rid of this -- >> what's insurance coverage like for throwing somebody off a plane? >> there's so much liability in this business carrying millions of people in air lanplaeps you sued every day. -- >> to go back to what tyler was

asking you about before when we first had you on you said there was rules on how much you could -- you were very much against the idea that god forbid there should be some sort of auction happening at the gate where people trying to get the highest possible bid so they'd get a free ticket later. it sounds like that's where we arrived at for the good of the consumer. >> that's the deal they make, whether they know what deal they make owner they agree to that exception if we in in voluntarily pumped you off. he didn't want to agree to that agreement, it got out of happened and frankly they raised the lim. i would have got the cash and showed him $800 that would have gotten him off the plane. >> so back to the question what the semi price may or may not have been will we ever know definitively?

will it show up in a filing somewhere? >> you know, yan it's hard to keep things these silent. because the attorneys like to beat their chest and say look what i did. at the same time i hope that this was never replicated and i don't think it will be. >> if you hear anything gordon give us a call will you? >> i'll call you first. >> gordan thank you. >> thank you. >> all right getz get to phil he bow on capitol hill. >> what's interesting about this hearing its lasted 3.5 hours and the criticisms for oscar munoz wasn't as blistering as they thought it might be. they did focus on key ideas is whether or not all airlines will stop overbooking look. united says it's going to reduce the am of overbooking and if that doesn't happen there were members of congress who were pretty much saying look, we will

eventually start considering further rogeliolations for the airlines. here's what they had todd. >> i guess my first question i have going to ask is why do you hate the american people but i'm not going to ask that. >> meed to put the customers first and that's how you keep congress off your back. >> that should be the take away from today is seize the opportunity because if you don't we're going to come and you're not going to like it. >> and it wasn't just representative shoester it was several other members of congress that said look if you can't fix this we will. and whether that means fixing the problem of overbooking or telling airlines we're not happy with the fact you're charging 150 or $200 a pop to change shall be's reservation. that is the cash cow that worry it is airlines. you're talking $2.5 billion that they brought in last year. what happens if members of coming say you should be moving

everybody's ticket around for $10, $15, that's the concern here on capitol hill. >> phil thank you very much. our next guest says the american airlines industry has failed congress and calls on some to fix the problem. what would you like to see happen here in the light of the united incident and other incidents that i assume you believe are evidence of a lack of competition in air travel? >> well consumers rights have been tram ld on. we have seen a shift to all of the airlines. there's been this enormous consolidation over the last few years. what you saw at united is an example of what happens when airlines do not have to answer to their customers. but it didn't just happen in

united, american had a terrible incident. delta had a terrible incident. okay first of all we think there should be more competition, we'd like to see competitors coming into the marketplace to compete with the four airlines. >> what's to stop them from doing that? >> there are rules and there's anti-trust immunity that they have, we'd like to see that reexamined by congress. we'd like to see the fare fees-act pass. it would tie for example cancellation fees you just spoke about. $250 because something changed, your schedule changed. all of a sudden the airlines get to keep your $250 for what, it doesn't cost them $250 to rebook you. they made $800 million according to one congress today at united airlines just taking money out

of consumer's pocket because change of plans. i think congress needs to review the anti-trust immunity that's been granted to the airlines. we need to look at more competition. the airlines do their best to keep out competition to keep their slots to themselves. there's another piece here that's really important, that's when the airlines pull out some of those more less populated cities and rural areas, that has a big hit on the economic dwi in those communities. businesses didn't want to set up operations in places that are really hard to get to. so you've got you -- in the hearing this morning in the house you saw members of coming who's constituents are angry about how they're treated. >> now you're talking about a different issues, you're taught about airlines not going to certain places. there use to be subsidies in the past for airlines to go to

areas. what they find is people will drive half hour to get to bigger airports. >> let's let some competitors come in and see who can after what. right now we have a very concentrated industry, anti-trust immunity and by the way it's very hard to sue the airlines. the state attorney general cannot do it, they're preemed to do that by law. >> mr. dao did just fine though. >> that's a situation where their hand was forced and they were going to settle one way or the other. and the other i'm sure the other passengers who have the similar problems on the airlines they'll probably settle too. but the fact remains we don't have a lot of power consumers to sue the airlines. >> your main thesis is anti-competitive in terms of airlines and yet airline prices in terms of ticket the price a consumer pays is remain flat

over the last years. you pull up some staffs, average cost -- it's gone down. >> the difference is very small. >> it's very misleading. >> why with repaying little more compared to 50 years ago for a ticket. >> first of all, that's misleading because the cash cows are fees, fees for cancellation, fees for baggage, fees for your seat selection, that's how they're making their money -- >> the cost for miles flown has fallen dramaticky -- >> it hasn't fallen dramatically. >> today's dollars according to bureau's statistics last year's average was $392. that's not much different over the last few years. >> well there was a congressman

talking about how expensive it was for him to fly and the time slots that he's given are very -- are very limited. i can give you many examples i'm from minneapolis. i live six months down the road and from washington to minneapolis the fairs are high even six months later when you know the flights are not full. it depends on where you're talking about flying. if you're talking about flying to cleveland, i felt to go to cleveland this weekend my son's playing baseball in a tournament it'll cost me $450 to fly. i don't call that -- >> you think we all deserves cheap flights. everybody should be on the same flight whether anywhere in the country -- >> we deserve competition. lack of competition results in the airlines having a tremendous amount of power to impose fees, and that by the way is where their cash cow is. even if they're arguing prices have gone down and we challenge

some of those assumptions, they're ability to squeeze money out of us and to limit the access to various flights, you can only get a cheap flight if you're going at 6:00 in the morning, doesn't matter the time of day -- >> you can fly whatever you want at what time. we heard it loud and clear thank you so much. and we appreciate you weighing in here. less than 24 hours we're going to get the fed decisions on trrts, what are they going to stay about interest rates. those are the key questions that's been asked. steve. >> thank you. 99% say that our flights are terrible. 65% say the next hike will be in june.

63 say -- and 71% say the balance sheet. the balance sheet will begin declining in january 2017. let's look at this economic of this group. 23% say the threat of trade and protection is the worst and biggest threat to the u.s. economy but that is 21 points lower. followed by geopolitical risks we have another question where 60% says the president's foreign policy has increased mark risks. 8% say tax and regulatory policy's a threat. we asked about the president's temperment only 88% say that's the biggest threat to the company. now to the gdp. going up to 224 at 2.6 in 2018 with a pretty low recesssive probability over the next 12 months for this group. now i have to give pathologiapo

my friend larry. this is what they think the president's economic plans will add to gdp. just 20 basis points, they thought in march, that's come down. now they think 12 basis point this year and only 30 basis points to gdp this year. two things about the chart, they've lowered the amount of gdp and pushed more of it into next year. we see that in the stock and a look at over things. so, tyler not a lot of 3% growth answers to our questions. >> i always ask you this. who are these people? >> 43 from managers and strategists, you know all they're names. >> why didn't you ask me? >> larry you are more than welcome to join. >> my phone's always own. >> cnbc larry kudlow is here on the set. >> they never ask me what's up with that.

>> 43 people who's names you would know if we were at liberty to release them. steve thank you so much. >> didn't ask any of my friends either. come on. well we're talking about tax cuts, if you get the corporate tax cut over point gdp, i don't know it may start next year or the year after. you're already seeing, i know it's soft data, but business confidence has been rising and so forth, small business confidence has been rising. you're going to give a massive reduction in the corporate tax rate. you're going to give in sent t.v.s to bring the number back home and allow for me the expense for new business equipment, that goes to the weakness in the economy which is capital stock. >> we had -- donald trump's plan

for taxes based on kansas and their taxi revenue has known gone up but have gone down a lot. tax cuts did not lead to more tax revenue at least not yet. >> or growth. >> or growth. >> look, i don't know anything about kansas, i can't argue in the basis of kansas. i can argue this on the basis of the j.f.k., '60s. i can argue this on the basis of 1930s if you want to go back there. wages, it's a wage-earners tax cut that's a big part of this too. you got consumer spending side no to the this -- >> you're made this point before but fill in the blanks. >> 70% of corporate tax cuts will go to better wages and benefits. corporations don't really pay taxes, they do but then they pass the burden along. and so they start with they're

own staff whether that's right or wrong that's where they start, it also effects consumer prices. and by the way, it may have a national effect. if you're raising corporate taxes and wages go down in one spot it may effect the competition as well. this is a huge boost to business investment and consumer spending. i know we're going to have moderate l models and yelling and all that stuff, the museum from 1.8% growth which is the base lean for next ten years, to a potential 3% growth, i think is -- it's in the game. it's a plausible movement. it gets america where to where it's long-term growth was. and by the way, it's the mother of all payments, right, pay for about $4 trillion off the higher growth rate. we can argue and debate but i'm sticking to my guns.

>> okay. you were here when we were listening to mulvaney live talking about what he saw was the victories in this budge, a lot of people will watch and gre droen groen that this is -- >> i think we need to add to the defense budge, i think mulvaney is a smart guy and he's right. there's a lot of stuff that should have gone into that budget by the way, i'm a believer in the border wall or fence. but this idea of parity is broken, that's good. could we step back for a second, why do we have to have a filibuster threat of growth for budget bill, i don't understand that. why do we have to have fill beauters at all? it's not in the constitution, 1970 strurm, it's just tradition. it's done for bad reasons,

representative, democracy, you vote them in if it's 62 majority in the senate, boom. i don't understand any of this stuff. judges, supreme court, lower courts we've been making thooz changes -- i think trump was right he tweeted yesterday, what's wrong with a 51 vote majority. if you don't like it vote them out. -- >> there's certain things in the constitution that do require a civil requirement but it's not that kind of stuff. >> this is why, this is part of the whole budget, reconciliation, that's now long time 40 whatever years old. 51 votes, all these spending and taxing bills should not be formulated by some kind of 60 super majority vote. i don't even know what that stuff came from to tell you the truth. the small state representative equally with the big states they get two small seats, that's

enough. this filibuster stuff has got to come to an end. it blocks the people's will, blocks the governance in washington, d.c. >> i guess the argument is you'd get something bipartisan from the people from the other side -- >> big believer i love bipartisan, j.f.k. the. >> referee: lurevolution was /*- revolution was about bipartisan. you can't stop governance, you win -- >> win elections. >> that's the deal. and pay attention to my friend mnuchin, 100 year bonds, ultra long-term bonds to take the pressure off of the debt -- >> mitch mcconnell says it's not

time to take -- >> i think mnuchin's got the story right. you're at 3%, somebody from j prk morgan was quoted saying -- >> borrow money now. >> 100 years about 3.5%. get that done, i'm sorry about mcconnell i have great respect for him. but i say change the rules, sometime you have to do that to make the system works. >> larry thank you. on "power lunch" the ceo edward life sciences, dr. oz will join us to explain what needs to be done. plus early movers in our draft, one teem funnel ld the kick off. another driving it don the field. both teams, all that and more on "power lunch." let's go, she's a dog.

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welcome back to "power lunch" i'm meg terrell. joins by ceo mike may sall la. thanks for joining us. so you guys had a big beat in q-1 driven by the growth in this product. this is a new way of delivering a heart valve not using heart surgery. tell us about the growth in this product. >> we were fortunate. in the first kwaut we had great growth in our businesses and we're proud of our people.

but in particular heart valves is on a rapid growth rate particularly in the united states. it was introduced in the united states in 2011, we had a couple revolutions in technology and trial has zplon straited it's better than surgery. >> at what point do we get to a place we're no longer doing open heart surgery for valve replacement? >> i think there'll always be open heart surgery because sometimes it might be complex, you may need to address two valves. for this particular disease, severe aortic ste nose -- >> we've been seeing a lot of consolidation in the medical technology space, some huge deals and mid-size deals. what should we think about in edward as a consolidate date of

birth or either company? >> we're structure ral folks. we're going to stay put in heart disease. we're happy doing just that. there's so many needs for patients in these two spaces we think we can grow for many years and contribute a lot to patients without having to acquire. >> in the broader environment in healthcare we're talking about health reform how does that effect your industry? >> i think industry has been improved to improve cost. we stay focused on transforming the delivery of medicine. we make cardiovascular medicine better than today. we think we can do it, it takes a lot of evidence, time and money, but it's so rewarding when you get it right. >> thanks so much for joining us. >> the oil market is close for today let's get to jackie, the

commodity desk. >> a five week low for crude oil you can see a 2.5% decline there, we were roughly 1% lower on the day. 4749 was the session low. breaking through technical levels that helped us move further down. opec fell in april that's four months in a row but investors don't care. this is a tentative trade to the downside. back to you. oil billionaire haroldham in t the. he's join us from dubai. coming up next.

our next guest, a big backer of president trump during the the election. just yesterday trump says he'll be open to racing the gas tax on gasoline to pay for infrastructure. joining us from dubai is harold hamm he's chairman and ceo of continental resources. mr.ham very good to have you here. have you heard president trump

talk about a gas tax and what do you think of that? >> well, first of all, you know as far as gas taxes, you know, i don't have a comment on it other than, you know, necessary infrastructure needs to be built out in the u.s. and, you know, if that's what it takes that's what it takes. so i'm sure that the president has a very good -- very good information that, you know, as to whether that needs to be done or not. >> what do you think of the president's performance so far when you look at his favlt ratings they're pretty negative or pretty low, but when you drill down into what republicans think they're a lot more supportive? you were a big backer of his, what do you make of his first 100 days? >> okay i didn't -- i'm sorry i didn't understand your question. if you wouldn't mind trying that

again i appreciate it. >> your aassessment of president trump's first 100 days, thumbs up, thumbs down? >> well, thumbs up for the first 100 days. you know, the president accomplished a great deal within those hundred days, and the economy shows it this t jobs are up. a great deal of good things happening, the mood in america is very positive. certainly we thumbs up for the president's first hundred days. >> what are your predictions about where prices are going particularly given the opec meeting on may 25th? >> well there's been some pressure wondering whether or not opec would keep the cuts in place, but i think it's a fore

gone conclusion that those cuts will remain in place. you know, it takes a long time to, you know, draw down the inventory that was built up for the last two years, some 350 million barrels of excess inventory, and these cuts have been in place some 90 days, and we been in the shoulder months of the year. they're not drawn down very much if you're not in heavy driving season, that driving season's coming on. we're about two weeks from schools being out, people on vacation, we'll see the inventories come down. everybody's got a kind eye, you know, looking at the results of inventory draw down, so that will start happening. 90 days is just too short of a time to see those things happen. >> we'll keep watch for what happens now with oil prices. thank for joining us. we're going to keep this short

because there's a tremendous delay of five or six seconds. brian let's get over to you in beverly hills where there's a farless delay. >> yeah far less michelle. thank you very much. earlier today we had a majority leader what's going to happen with reform. he says it's still on the table, if it is what do doctors want to see. we're going to hear from doctor oz on healthcare reform right after this break. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat.

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. one of the people we spoke with here earlier at the milk conference was dr. oz. not only a television personality but a cardio this rask surgeon. so we sat down with him and asked what do doctors want to see from healthcare reforms. >> the reality in healthcare america -- the infrastructure issue which is how much it cost to take care of an anl american weaver never going to be able to

balance. you can figure out there's going to be medicaid spending, state smending i can get all this and we can debate that. but the infrastructure challenges have to be addressed. for example we have to deal with issues of tort reform, i call it hell justice. take out some of the risk in healthcare system and reward people doing a good job. i don't know why we fight with far may all the times there are things that far may needs for its medicine during trials, take that money let them make it and get it back by not getting charged so much. >> if i'm sick here and i'm sick in france it's going to cost more to treat me to your point here. why? >> it's almost twice as much because we have built-in friction in this system. when i went to a prescription -- i had no idea what it cost for you to get it which probably means you don't pick up the

drug. >> you don't even know what it cost? >> i don't know. we need to disrupt the infrastructure medicine not by hurting people but making it transparent. i should know what it cost, you should know what it cost. i should be more thoughtful about the way i prescribe things for you. you got to start keeping up it's 21 century. >> because we're talking about people's lives or their parents and children's lives the emotion get caught up. we try to talk about healthcare and it becomes death panels in 4 hours and the emotions get heightened up. how do we take out the emotion and try to fix the problem? >> you make this happen by realizing you don't win the battle for health in the hospital and congress. you realize health in your home. forget about healthcare, you'll feel better doing these thick,

you'll lose weight, no hypertension or diabetes. >> i've said that many times, why do we fight so much over treatment cost, why aren't we talking more about why we're so sick. >> the bill for example which should pass will give in sentives to people to pay attention to their numbers. >> what could we do? in japan they msh your waist if you're over a certain size, by the way i would be you would get penalized. >> i get that. i'm not trying to penalize on that but if you're actively smoking it should cost more. here's the big idea, i think we have fundamentally looked at two ways of ensuring the population. the first is take the people who have the able to make the decision and the other is take care of people who can't make the decisions, mental health

problems, adecision. we have the able to do both. if you have the able to take care of yourself here's a health savings account. you have the money to fund it. take it to debt pass it to your kids, be smart. if you're not, let's baby-sit you a bit, i don't mean to say that in a harsh way but lemake sure you show up from your mental health situation. >> so tyler we talk a lot about the infrastructure here at the milking conference, we talk be roads and reports, dr. oz talk about redoing the healthcare infrastructure. those are his views on healthcare reform and why the system need to be revamped and maybe a little more personal responsibility thrown into it. >> any idea of price discrimination and being in sent

vised to be healthy and be penalized if you're not. we're not all alike or in the same level of risk as we learn every day as we pay our life insurance bill. brian thanks very much. we'll check in later. markets keep soaring high as washington makes promises it has yet to keep and north korea makes threats we hope they don't. should you have some in investment protection in gold? we'll discuss that next. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here.

poll sliding to a three-week low today. let's get with the trading nation team. rick role and gina sanchez. gina i would imagine that your prediction or forecast of gold will have a lot to do with where the dollar is going. >> it has a lot to do with where the dollar is going. those are largely moving against gold. we have an economy that is recovering, we're going into an interest rate hiking cycle. volatility has been low and the dollar has been strengthening. i'm going the give you a couple thing to think about.

first expectations have caught up with the macro numbers so people are expected a lot more out of macro data. we saw our first big disappointment for q-1. i think we see more zpoomts as people have gotten lady of where the economy is. i think interest rates, that's probably not going to be positive by the dollar, the question of where the dollar is going right now is a big question and i think that could be beneficiary. and what's happening geopoliticalically that could feed into gold. >> so you think there's a place for gold? >> yeah. there's a short-term place for gold to be in the portfolio right now. >> what do you see in the charts? >> i'm not interested. i'll show you why i am disinterested here. credit where credit is due,

you've had a great run in gold just on a yearly inflation, but that failure in friend line calls in position -- now when we look at chart two you see we start up on the six and we inverted and what are we left with here, you're left with yen. which is a fancy way of saying all the gold is to me is a safe haven and play on a weaker dollar, lower yield and a bet against japan. i take the other side, the dollar index goes higher, yields go higher and japan goes higher. not a buyer of gold. in fact for a trade i'd be a seller and add on a break below 1250. >> rich thank you. thank you gina. for more on trading nation gone to cnbc.com. one of the pits in our stock last week. we'll talk to the man who picked

it. next on power. industrial and technology stocks have historically outperformed the broader market. when the economy is contracting, more defensive sectors outperform so when choosing to invest in a particular sector, be sure to consider where we are in the economic cycle.

stock draft last week, and today, shares of advanced microdevices get exact for a loss of 23 yards. no, 23%. former new york giant charles way picked amd in the stock draft, and while it's still early in the first quarter, this fumble has put the stock giant in a deep hole. we may need a hail mary to catch up, but he's taken hits before. he's with us now on the phone. charles, apologies. we had to put in as many football references as we possibly could there. i want to get your thoughts on amd, what happened today, and point out that it is early, and if the patriots had given up in the super bowl at halftime, they

never would have won. >> caller: you are absolutely right, and i'm going to borrow some football analogies right now. it's not how you start. it's how you finish. we're going to trust the process here. you have to believe in amd's processor. that is key technology that's been outperforming intel's processor, and look at the two new developments on the cyber security space and advanced rendering, it only bodes well for them in the next three quarters. >> so why is the market taking it out on earnings? >> they've been up 25% in the past quarter, and when you see a stock, especially a tech stock going that high, you are waiting for it to go down, especially when it's close to a 52-week high, and you know what happened last week to intel, and even though they met their

performance, people thought, well, what better time than now to take our profit and come back in at a later time. >> so you would add money here if you -- obviously, that's not how we calculate the stock draft, but you'd add money here? >> caller: absolutely. this is still a great pick. it's still one of the best -- they still have one of the best processor in the industry. the gaming industry continues to grow, and what they are doing in that space is just cutting edge right now. >> this is more eli manning than ryan leaf? >> caller: oh, absolutely. think about it. i've been a part of those two eli manning teams, and if you look at those seasons, leaf never started out great. we never had, like, the best team on the field, but when it counted, we were there. >> all right, charles, good luck to you. we'll be checking back with you. we appreciate you coming on. always good to hear from my uva buddy. check please is next.

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getting a statement from the white house about the president's phone conversation with russian president putin. the white house saying that they had a good conversation, but they discussed syria, and the suffering and violence in syria has gone on too long and will work to end the violent. they also discussed at length working together to eradicate terrorism in the middle east and spoke about how best resolve very dangerous situation in north korea.

again, this according to the white house that was the conversation between the president and russian president putin. we had an interview earlier on the show -- check please -- highlighting the risk of the airline space. sally greenberg argued there needs to be more competition in the airline and things would happen on the united flight wouldn't happen, and a lot of people agree there needs to be more competition, and everything advocated was actually about nothing related to more competition, more government intervention, the fear of the market, and it -- it could get a lot more regulation if they don't clean up their customer service mess. >> i can't imagine this administration or the republican congress goes for more regulation at all. i mean, i don't know the industry well enough, but the question of why can't american airlines go in and if they want to fly from newark to richmond,

virginia, why can't they do it? >> in 17 years of coming to the conference rs th conference, this is the most optimistic conference. it's a do no harm attitude, get things done. see you back east. >> thank you, brian. >> thank you for watching "power," and "closing bell" starts right now. welcome to "closing bell," i'm sara eisen in for kelly evans at the new york stock exchange. welcome back. >> thank you. i'm bill griffeths. nasdaq fighting to stay positive, it's not there now. awaiting apple's earnings after the bell. getting the big guy. >> aetna the winner today, despite ongoing pressure in the obamacare business. coming up, the