tv Power Lunch CNBC May 19, 2017 1:00pm-3:01pm EDT
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well but european dealers doing well. stock is beat each of last eight quarters. >> joshy? >> jpmorgan. in jamie dimon's own words, u.s. economy is $100 trillion by to 20th 2 2025. it is impossible to believe jpmorgan won't thrive as that takes place. >> power lunch starts now. >> live in washington, d.c., welcome everybody. what a week it has been. first up, president trump getting ready to leave this hour for his first overseas trip. will it help reset his agenda or will his troubles follow him? speaking of the trump and gop agenda infrastructure is a big part of it. actually bipartisan. we will speak with two congressman on opposite sides of the aisle about their bipartisan plan to rebuild america. and can't get anything done without tax reform. will con guess get tax reform done this year? we will ask questions and get
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answers as power lunch from d.c. begins right now. welcome to power lunch. here is what else is on the menu today. so much for d.c. drama crushing the markets. investors shaking off the political turmoil for a day. is it rally on again? and for how long? plus, for foot locker today, no thrill of victory. just the agony of defeat. this stock sinking and smelling like an old shoe. two all-beef patty special sauce pickles onions all sesame seed bun for mcdonald's. the burger boom alive and well on wall street. brian? >> kayla, thank you. and i want you to know i'm keeping your desk clean. i've been using it. a one of the wildest weeks we can remember. the president getting ready to
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depart for his first overseas trip since taking office. >>. >> reporter: when he talked to white house officials about the trip they used words like historic and words like reset. both in terms of domestic politics with a tough week in washington, d.c. and in terms of the international picture and resetting the debate in the middle east. the president very much focused on cutting a big deal if he can do it in the middle east while he is there. take a look at the map and you will see that this is a very ambitious trip for a first trip of the president of the united states. they started out in saudi arabia. then they are going to jerusalem. then they are going to vatican city. then up to brussels. back down to sicily and italy. this is a multicontinental multitime zone multiclimate trip. a complicated one. there is going to be a diplomatic dance here with all of the different moving parts but they say they are ready for it and saying this president despite tough rhetoric on islam
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during the campaign might be in a position to actually cut a deal that other presidents couldn't have cut. meanwhile the president tweeting this morning saying he is very much look forward to it. here is what president said on his twitter account. saying, ready for my big foreign trip. strongly protecting american interests. that's what i like to do. the other piece of business they are working on here at the white house today is selecting an fb i director but brian we are told not to expect an fbi director pick today and certainly not before he leaves for the foreign trip. brian? >> i will take it from there, aimian. the administration has a lot of things cooking right now. a wild week on wall street. stocks marching higher. firming up after wednesday's big selloff. sitting currently around highs. and dominik chu with what is working today's market. dom? >> as we look at dow jones industrial average we look at
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wednesday with the worst trading day of the year big all of a sudden just about a quarter after percentage point away from flat lining for the week. so again, this is a pretty interesting week. one of the big contributors so far speaking of defense contractors in saudi arabia, boeing shares, one of the best performers if not the best point performer on the dow today. see that 1.5% gain. worth about 17, 18 points of dow gains overall today. that's post 5 with imc. let's look at citadel over here. as we look at one of the other big performers. goldman sachs up today. we are talking about 15, 16% move here for goldman sachs shares as well. caterpillar, want to point that out. it isn't dooer beere, but it is component. then you look at overall here, united health group, one of the other big performers, $1.22 and change, maybe a little bit up.
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still worth about 7, 8 points over all. as we talk about the dow's top point contributors, guys, those are the ones to watch boeing biggest one so far. back over foup. >> thanks so much. so is this the rally that won't quit and simply can't be killed? let's bring in steve wood chief market strategist and quincy cross by with prudential financial. steve, to what do you attribute the stability we have seen yesterday and today as well? >> we think there is a lot of momentum in the market. earnings fundamentals economic fundamentals are improving. the fundamentals are good in the u.s. but we think will valuations need excellent fundamentals. we think the knowant um and cycle driving the market eventually investors will look at firm valuations. that's why we are advising our client to be more global and multiasset. >> what data point or policy developments would you look at and say okay now policy
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valuations are verified. >> it is a little premature. we have seen that the last couple of weeks. even if we have trump economics implemented, we don't think you will. this is washington, d.c. we will take the politicians in politics but you would be looking at middle back half of 2018 by the time you get real feel impact from policies. but we would push that out so i think right now this is more being driven by momentum and sentiment than it would be fundamentals. >> quincy, so many stock sectors are being driven by what is happening in the bond market. i'm thinking specifically about financials and there was this expectation that banks would see this boom under the trump administration. but really when you see the tenure at levels that it's been at, it is hard to see a tail wind for those companies. how closely are you watching the bond market and what is your forecast for it? >> absolutely. the ten-year and the fundamentals, underpinning
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financials, the fact is that relationship with the ten-year yield is almost 95% since the trump rally. then of course the selloff. then the utilities got the bid. almost the opposite of one another. the sea saw. but the fact remains that if the economy continues to grow even we get even a little bit of regulation pull back, it'll be helpful for financials. we expect to see mergers and acquisitions that mergers can participate in. then we think the ten-year yield will begin to climb a bit higher. now keep in mind, the ten-year yield is a favorite spot for pension funds globally to get a yield. and one more volatile move in the markets, money comes in for safety pushing yields down. but absent all of that, we think that the ten-year yield reached a low point, can start climbing
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high earn beneficial at least from the trading side for the xlf to start, you know, getting a bit -- you see it already today with the financials getting a bit started yesterday. keep in mind they were probably one of the strongest of the trump trade. pull back and start again. >> are you surprised to see volatility more prodly as low as it is? even on wednesday when we saw the massive selloff. vix climbing to 13 or 14. >> absolute gain was not big. in this environment what we say to clients, valuations are high, fundamentals are good. so in that environment if you cut free, you don't have to be u.s. only. if you look globeally, multiasset, then look at valuations as more of a tail wind. there is great fundamentals in europe. i think the volatility and complacency right now is an opportunity to just be very planful, very disciplined, rebalance. just do the things you are supposed to do.
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be global, multiasset, very discipline. >> you make it sound so easy. not so. but we like that you make it sound that way. thanks to both of you. brian, back to you down in d.c. >> thank you very much. president trump less than an hour away from taking off on his first foreign trip. timing could be just what the doctor ordered after another rough and tumble week for the president. this time abroad helping reset the agenda and can congress use absence to get its economic agenda back on track and get big bills passed? joining us now congressman mike kelly and congressman blumen our. today they have a bipartisan bill with, an infrastructure bill but private public partnership financing and inpra structure bill more specifically we did a pan bell it this morning. gentlemen, welcome. thank you for joining us. >> thank for having me. >> before you give the details of this bill and how you came together on it, the president going away, first question is,
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in this environment, congressman kelly first to you, can we get anything done? >> sure and we have to get things done. for the president you're either in the penthouse or outhouse. but it is good for him to get out of town. reestablish who we are as heard. >> but is it good for you? >> no, it doesn't -- listen, whether the president is in town or out of town, the answer is, listen, earl and i have a job to do. it doesn't matter who is in the white house. we're in the people's house. our responsibility is to the people that we represent back home. that's not always all republicans or all democrats. >> why do you say -- why did you pat him on the shoulder and say yes, it is. >> i think the whirl wind comedy of errors in the white house, dumpster fire of the day, gets in the way. it takes the oxygen out. and the stuff that mike and i care about, for instance, rebuilding and renewing this country which should be a priority for the president, but he's got other things, he can can focus on h h some things. we can move it forward and it
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request h with help a host of items. >> the knee jerk from the media is the president's problems will derail anything he wants to get done. gop and trump agenda are similar but not the same. they are independent. you're a democrat and pushing for infrastructure. school of thought i've heard the last couple days is, you know what, maybe this gives us a little cover to go ahead and do what we want to do. and get things done on our own. >> that's interesting. i've never sat down and talked with earl so let's sit down and plan and get it done. that's what they expect us to do. i don't think you wait for the best way to do it. today is the best day to start and talk about it. we feel the same way. we go home and answer to the people that sent us to represent them. >> have watched congress move forward. the president came up with some budget stuff and people in capitol hill looked at it. the president proposes, congress
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disposes. there are things that looks loopy. culting medical research. no, we're not going to do that. he can ca came to a budget agreement and infrastructure is one of these things. >> the bill we talked about this morning, it is a bill that short and sweet. it helps private money whatever that may be, public private investors funds, bonds, whatever. availability bonds. it helps them build public buildings. a, do you think can you get this passed? b, if you do get it passed, what does it mean for viewers and investors? >> this is the tax code for tax-exempt fie napsingfinancing. this is public/private partnerships. which we believe in. it'll be something every single american would be proud of. how do we get it done? through communities of jurisdiction. but earl and i work hard on getting colleagues from both
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sides of the aisle together and senate on board too so we have like 11 republicans and 8 democrats on it bill on our side and i think in the senate 5 republicans and 3 democrats. already bipartisan. now it is going to be up to us to keep push aeng pushiing and pushing. >> this mechanism would give an interest break on financing for public buildings. we already do this. called public activity bonds. we do it for water infrastructure. so far public buildings haven't been eligible. colleges, courthouses. my community just passed the largest bond measure in the history of the state to refurbish schools. so rebuild some high schools. to get rid of lead in drinking water. this allows us to unlock $1.7 trillion of american capital, to be able to part of this and get an interest break. >> we are running out of time. i have to ask this because our audience, tax reform seems to be
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everything. your bill would theoretically latch ton a tax reform package. do you believe we will get one done? >> it's an open question. but this is stand alone legislation which we have been able to move forward in the past for private activity bonds for water. i think, mike and i, can get bipartisan support and people need to get things moving. this is a small step that might help us show that maybe we can do some bigger things. >> the fact that you two gentlemen are sitting hoor together having a discussion, producing a bill in both -- kayla, there is hope for america. i want to point that out. we aren't fighting. no one is arm wrestling. no yelling. well, i'm yelling. i always yell. >> keep your mikes hot during the commercial break and sue hoe it unfolds behind the scenes. is everyone on their best behavior? >> in the twitter world there is no commercial break. >> thank you, brie bean, for fig
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bipartisan ground in d.c. >> jackie? >> good afternoon. if it is friday afternoon we are looking for recap numbers. 1th straig 18th straight week adding oil rigs in the united states. up to a total count of 720. that's up 402 versus a year ago. that is very significant. can you see if you look at the chargeup oil prices, they are still trading over 50 and 5.5% gain for the week. back over to you. >> jackie deangelis at the commodities desk. bond may be in rally mode. foot locker stinking up the joint. but first you will hear from one market launcher who says by now you could end up smelling like a rose. check out russell 1,000. l brands, gap, raffle lauren and more. we will go inside the numbers, next. ve how usaa gives me the peace of mind and the security just like the marines did. at one point, i did change
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look at that stock drop down 16 p 16% after triple miss and same store sales all falling short. that's part of the retail track getting hit. well, it is holding stayedy the steady there. tracking towards the worst week of the year. here to bring us foot locker'sing a knee locker's agony of defeat -- >> we don't write this stuff,
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guys. >> i have no claims to it. quoting reagan. >> foot locker isn't ending on a high note. foot locker is not alone in the retail stinking up the joint today. it still missed. foot locker shares down more than 20% for the week. on pace for the worst week since november 2008. jeff any jeffrey, randal, shares are overselling on this news. foot locker says that tax rebate delays hurt sales. but it did also say that style shifts did too and that there is lingering impact in the current quarter. adidas is still hot but foot locker says the superstar styles are off their peaks. underarmor is taking a hit in sympathy too. bigger picture, still stuck in struggling women's apparel
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segment and not alone if the specialty apparel names, getting hit, urban outfit percent. >> putting the stock on pace for the worst week since november 2008, is there hope left for the stock or did it just start off on the wrong foot? it keeps going and going. let's bring in sam poser. senior research analyst. a buy rating on the stock. sam, you said you would buy on any weakness? >> yeah. we have talked about this. so many moving parts to the first quarter. i can walk you through it. tax refund checks from february through march. moved out of march, extra selling day in march. easter in april. lost sealing day a selling day . an asection holiday in europe, may 5th last year, may 25th this year. so really, i don't think we see a full view for any retailer, foot locker as well. >> i have a question.
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it's not like it is a -- they beat -- they miss your own expectations, correct? but you knew about these calendar changes. it is not like you open up the calendar this year and oh, easter is on this date. we knew that for a long time. how much do you forgive foot locker for blaming calendar on their misses. they end up at the end of the day with tax refunds moving in their biggest month. biggest basketball month of the year and probably their second or third value month of the year as well. because you have the nba all-star game and the money people had to spend and they did cough up high single digits in mar march and april and say traffic improved march and february. others missed february and comped no low singles in march and april. this is still a very good company. >> i was going to ask you if the tax rebate is just an excuse or if that is a legitimate concern for the company. are we seeing other retailers
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start citing that? and after they site it, is there that big boot? how many buy shoes with that refund especially now as curt knee said, make the stan smiths lost their luster. >> we can have the stan smith conversation, but in general, people spent a lot of money when they have it. and the question is, is if you are going to buy a pair of jordans, on february 25th, around the launch, and all of a sudden you get that money on march 15th, and she was already old that point in time, do you buy that same shoe, and the answer is no. but they clearly bought a lot of other stuff. other things all work their way out. and that's what i'm saying is that i think february is an anomaly in general for all the retailers. >> all retail. >> right. a lot of that had to do with tax refunds. i think if we can look at march, april, may together, once we get through may, then i think we will have a fairly good idea for foot locker or any other retailers as to what the trends
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really are. i think that this is the most confusing first quarter i have ever seen. i don't think it is a read on the health of the not health of individual retailers. it is one big train wreck. a bunch of them come out of train wreck back on the tracks just for another pun for the day. >> very quickly, do you cover deckers? >> i do. >> deckers said they were doing as much as they are reporting next week. do you want them to have al tern tists sin alternatives since you are working with them -- >> it doesn't make a lot of sense to me personally. i think you have to shrink the ugg business to grow it. we know that people are looking back on 2011 and '10 and '12, even numbers, which we just think were when the brand was
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much hotter than it is now. and to get the numbers they think they can get to it, i think it has to shrink. and so, i don't know what strategic would get it. they don't have a particular bench at ugg right now. and i don't know what private equity would -- >> right. not much hope for it, basically. >> variety can save uggs. >> maybe not. sam poser, thanks for coming in. >> kids are buying sneakers. what are they spending their cash on right now in the surge in video game stocks may hold one big clue. our call of duty on this sector is next. right here on power lunch. so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options
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investment and wealth management firms in the country. discover how we can help find your unlock. a sell off of 165, caterpillar leading to the upside. j & j to the down side. let's get back it brian sullivan, live on capitol hill. brian? >> thank you very much. coming up, we have certainly talked a lot about infrastructure over last couple of days. but after the break, we take you a different direction. does washington have an infrastructure in government problem and does the trump administration need more people in we will hit that part of the trump agenda when "power lunch" from d.c. returns right after this. thing traditional about my small business so when it comes to technology, i need someone that understands my unique needs. my dell small business advisor has gotten to know our business so well that is feels like he's a part of our team. with one phone call, he sets me up with tailored products
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the holy month of ramadan begins which is at end of may. a federal grand jury has indicted the tennessee teacher who was the subject of a nationwide manhunt because he fleed with a 15-year-old student. tad cummings faces mandatory minimum sentence of ten years in prison. a minnesota judge has ruled that the prince's six siblings are the hai are heirs to his estate. more than 45 people filed claims including prince's wife, children, siblings or other relatives in the wake of his passing. . and a pennsylvania woman made a dress, nice looking dress, actually, for more than 10,000 star burst candy wrappers given to her by her husband. emily met her husband when he offered her a pack of star burst. that's his favorite candy. and the rest, as they say, is history. i know, i know -- >> so many questions. it must be pretty sticky.
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the wrappers are naturally waxy. how did they -- >> how is it holding together? >> can you wash it? >> you don't. you definitely cannot wash it. i think this is one of wear and you know, toss it. >> turned out beautifully. >> it did. >> now i know what to do with those things. thanks, sue. >> you're welcome. >> we are on pace for the best day for the month of may. major averages coming back from much of the losses. nasdaq is up by 46 points kben. three quarters percent gain. s&p up by about 20 point here. and the russell up about .8 point. we do not normally cover it but we got to check out bitcoin today because the virtual currency is hitting an all-time high. if you add up all of the bitcoin up there, $38 million and currency over all, market cap of netflix. >> you think that is cyber-
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cyber ---the cyberattack -- >> actually, the cry had a negative impact. we are seeing here it has been recovering. brian, down to you. >> thank you. talking about president trump set it take flight on his first foreign trip nine days outside the beltway but can this trip serve as reset for the administration or will the chaos just follow the president around the world? joining us now, are two people who have been under the white house microscope themselves. sara fagen, white house political director under george w. bush and kim wallace served under barack obama. one thing i've heard, not only this trip but the last couple of trips down here, a growing concern we have a people problem. an infrastructure in government issue. meaning there is simply not enough people in the important mid level jobs and any of the
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departments, write legislation, draft bills, talk about and get things done. to get done. can you believe we have that issue? >> it is a fact. the president nominated 10% of his president appointees and confirming 5% of them. that's a limitation and driving the agenda from the white house and the speakers although capitol hill is willing to jump in. i think the other people problem is relationships from within the parties. >> and what president will say though, kim, is that you know what, democrats are stonewalling. we can't get anybody confirmed. >> been there, done that. it was a very tough slog getting president obama's nominees confirmed in the first year, year and half, and especially treasury. that's just a fact of life in washington. that's why you have layers of staff to help you. >> but that tit for tat is bad for the country, is it not, sarah? >> it is bad.
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>> the republicans shouldn't do it but the democrats shouldn't have done it either. >> there is a lot of jockeying going on but mid level appointees, and certainly republicans do control the calendar on capitol hill, and so i don't think there's a great skut for why they are so far behind our respective bosses that point. >> do you believe, sarah, you are dialled in, do you believe there are enough people that are willing to work in this administration to get all these big agenda items done? >> i think there is enough people willing to work. i don't think there is enough people who have the type of experience necessary. at least at the moment, the events of last week haven't helped. there are very talented people who have gone in to work and all of these agencies and experience in the last republican administration. so there are people but yes, it would be better if the trump administration were structured inside the white house to move people through the vetting process more quickly. and were working more
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collaboratively on the hill to get them done quicker. >> and let's not lose the point. you need mid level staff and senior staff but you also need the agenda set at the top. there has to be something to drive before you give it to the conductors to drive. >> do you believe, kim, there is a trump agenda and gop agenda? we in the media tend to lump them together because he is republican although many people would disagree with that characterization. there are separate and distinct agendas and they can still get done. >> well, the first part of that, and it is not uncommon at all for white house presidents to have an agenda that slightly differs from their party. but at the same time getting that done requires consensus and we have not seen consensus develop on any major issues put forward. yes, i don't have any doubt that majority later mcconnell and speaker ryan can run a legislative agenda with the staff they have on hand. but they have to have trust in
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the top down. >> sarah, let me ask more bluntly. i have this, no one will tell me outright but they will whisper it. the nudge and wink, thank goodness he is going away for up a can el of days. we can finally get to work. that's what i'm hearing on the hill. >> people are exhausted by the headlines. the white house is exhausted by the headlines. this is an important trip for president trump. his first forway on the stage. very important figure places, culturally, religiously, of course he has important summits. so you know, because of the trip assuming it goes well, and i think it will go well, and also the fact there's been a special prosecutor assigned to this or if this is likely, this news is likely to fall to the headlines a little bit and a breather for everybody working tax reform, working health care reform to focus -- >> i will ask you each as representative of your respective party same question i asked yes and i will start with you, kim, which is this.
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if the mueller investigation ends and nothing is found, no collusion, no action required, will the democrats be able to let russia go? >> first of all, i do not represent the democratic party. i've worked for democrats. if it ends in nothing, they will have to let it go. because the special prosecutor will have come and gone and there is nothing they can do from capitol hill to june up an indictment. however, capitol hill won't let the russia large issue go. you have investigations going on -- >> existing even after the mueller investigation. >> have you four committees engaged already in investigations. so yes, i think it will go along with that investigation. and i'm in the camp that says mueller's investigation won't be over in four or six months. there is too much to chew on. >> this will be the summer of comey as as our colleague chuck todd wrote. same question to you. technically votes aren't there to impeach the president. worst case scenario. if republicans all came on one side, they don't have the votes.
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do you think any republicans would vote for impeach fmt a worse case scenario was foupd in the mueller investigation? >> i think some would. reality is some people in office have a tendency to, particularly as you get closer to election, start thinking about their own reelection. if it was so bad that it was going to be passed on to the people running on the ballot in 2018, i think-ksh. >> preserving their own -- >> yeah. jump ship pretty quickly. but if nothing is found this is just an asterisk in trump's presidency. >> summer of comey. >> we have -- resignation is another way. i'm not predicting that. but it doesn't have to be impeachment to move on no anoth to another president. >> thank you. have a good weekend. melissa? >> when trump arrives in saudi arabia, the framework for $100 billion in arms deals potentially the largest such deals in american history. morgan is here with the very latest. morgan? >> we are expecting a flurry of
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announcements. that will be happening as soon as tomorrow morning. worth upwards of $100 billion, as you mentioned, with the potential to grow to as much as $350 billion over the next decade. among the agreements anticipated, saudi arabia's commitment to buy advanced missile defense system that lockheed martin makes with input from rakon and president trump's son-in-law jared kushner talked to lockheed to cut the cost which estimated about $1 billion. lockheed will only say quote foreign military sales are government to government decision aeps the status of any potential discussions can be best addressed by the u.s. government. no comment there. but also in terms of agreement, we expect a resuscitated deal for ships made by lockheed as well for general dynamics tanks and agreement from bae, systems. a number of other weapon systems expected to be purchased as well. who stands to benefit from this?
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top contractors. general dynamics pb raytheon. and a number of others. companies declined to comment but stocks are bouncing higher today and can you see that eer here. lockheed, raytheon, general dynamics, northrop grumman. >> they are used to getting direct calls from the white house on this stuff. >> certainly. i think that's why it wouldn't necessarily be all that surprising to hear that a call had been put into ceo like marilyn houston and we have seen other things happen like the f-35 of lockheed's. cost-cutting is a big part of this. we are talking about the saudi arabia deal but we also have the dod budget next week for 2018 and costs i would expect to be a focus there as well for them to truly rebuild the military. >> now over to the bond market. rick santelli is tracking action there at cme. good afternoon, rick.
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>> good afternoon. volati volatility. look at two day of tens. we extend aid buff yesterday's top of the range. not by much. but we are down nine basis points. stocks add pretty good bounce. dollar index not so much. if you look at marrying interest rates to equity markets, it is darn close to testing february area which is the highest level since july of 2015 as you see opt chart and finally let's go to epicenter of activity, dollar index. foreign exchange is volatile. if you look at mid 2016 it is very significant. the lows of the year and dollar index are basically at lows since november. and one of those key bottoms was around 9705. right within striking distance. pay attention as you see on the left side of the chart there are a lot of areas to support the market. one thing we learn bed by watchg
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i joined the army in july of '98. our 18 year old was in an accident. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life. welcome back to "power lunch." two video game makers have been wracking up points with investors. grand theft auto maker take 2 interacti interactive set to report on tuesday. what has been powering up video game stocks? jul julia boorstin is here with more. >> a turn around after nine consecutive months of declines, video games sales rose 10% in total last month to nearly $640 million. the game's software segment grew
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6% in a month. the rise thanks to 37% increase in hardware sales. that was led by nintendo's popular new switch console which sold 280,000 units last month. anyone tenda winning with its games, mario kart 8 deluxe top selling with nearly half a million units sold in the month. this all helping send netflix shares up more than 30% this year and up 84% over the past 12 months. now investors are looking towards take 2's earnings on tuesday. the company is expected to benefit from grand theft auto on-line and other recurring digital revenue streams as game sales slow which is why it is betting more on free mobile games. act vision and ea are both ramping up mobile gaming businesses. so the competition there is tougher than ever. but certainly a fun category to watch and we have e3, big video game convention with well, comi
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june. >> the burger king, pardon the pun, well done. red robin shares up 20%. shake shack and jack in the box also with solid gains. can you still make money if you take a bite into these names now? let's bring in bob, senior analyst. bob, great to have you with us. seems like these three stocks that we want it highlight, mcdonald's, cmg and jack. mcdonald's, potential to refranchise and gains from technology? >> those are some key items around the company's business plan. but you know, the thing that we have been most surprised about, quite frankly is how strong their traffic trend, how strong their same sales growth has been. those are the things where as we look forward with the rollout of this new series of signature crafted products, we believe these are selling really well and we pinned a research report about a month ago that said, be
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warned. mcdonald's is coming to take back half a billion dollars worth of trans actio transactioh they've lost. they are on troack to do that. >> for jack in the box, do you think mcdonald, looking at strategic alternative, like spinning out qdoba and like cng like where mcdonald's regretted it in early years and it turned out to be good for the franchise? >> that's possible. i think that management of jack in the box has clearly been frustrated with the progress and trends over at qdoba. i think they clearly have an idea and plan. unfortunately, i think that segment of the industry, fast casual segment has been very weak. chipotle is showing improvement from weak trends last year. directionally, qdoba's repairs are maybe best made in the private market as opposed to in
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the public market. >> was qdoba suffering because of chipotle's turn around? >> it would be too easy to draw that conclusion. that is possible but i think some of their own issues may have been self-inflicted. management themselves said when they relocated their headquarters from denver to san diego, they clearly, they think they negatively effected their business and some of the culture around the business. i think they've got plans to improve it but i think those plans are coming very, very slowly. >> bob, good to see you. bob derington of tell sea advisory. >> thank you. >> art world buzzing from last night's shocking auction. this painting, selling for a price that brought gasps from the crowd at sotheby's. we will tell you what it sold for and who the buyer was. and powerhouse of the week. we take you inside ellen degeneres's negativa estate in california.
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sports figures and ceo. this week we got talk show hostel len degeneres estate in santa ba santa barbra. take a look. >> this is ellen de-jens and her waif's home. every inch of the 11,000 square foot mansion is designed like a 17 century italian villa. the two story residence has six bedrooms and six bathrooms. here's where the power couple wake up to views of the pacific ocean. the dining room assets a part of ten. there's a sweet spot for the private chef to prepare dinner, plus nine fireplaces. >> ellen says when she buy as home she looks at it like a canvas and she points and points until there's nothing left to do. >> out back is what the talk show calls the entertainment pa
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vil yan. where you can ber stan yourself with a pool table, bar, and swimming pools. write the ladies a check for $45 million and this price is all yours. >> so ellen bought that in 2013 for $26.5 million. she added two other pieces of land, built those pools with a sunken tennis court. the two of them have bought and flipped seven homes in over ten years. people ask why is she selling. when she bought this one she says this one i'm going to keep forever. forever being four years. >> that's a cool little profit right there. >> she added two other properties so she bought other properties in addition to that. >> i imagine there's room for dancing in that entertainment pavilion as well. >> it actually makes that house
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looks cheap because we're going do to the look at a painting, it sold for $100,150,000. it's the most expensive painting sold by an american artist. it was painted in 1982, sold in 1984 for a long islands real estate developer for $19,000. the buyer was a 41-year-old japanese ecommerce bill faionai. he posed with his new painting on instagram saying i was struck with gratitude for my love of art. wealthy collector shrug off the market turmoil in sales topping $4.1 billion. some other big leaders, this
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paining went for $2.9 million. another big seller was the francis bacon trip dick that went for $51.8 million. he's the new darling of the market. this one sold for $35 million, in all 16 bas scouts were sold this week for a total more than $200 million. the record was set for basket when he bought this piece for $57 million he plans to put both of these in the museum in japan so everyone will get to see them. >> let's just say the one sold last night is not an image you're going to put in a child's bedroom. >> probably. the dark skulls with teeth not good for kids' room. >> robert thank you. it's been a rough week for retail but there's names showing sparks for this year. is there still time to profit from the blue box?
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this week the hbo takes a raf, the wizard of lies. were ruth and the kids in on the scam of the century. "power lunch" will be right back. ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans,
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. i'm melissa lee here's what's on the menu for the second hour of "power lunch." the president traveling abroad. plus stocks rebounding. will that turn things around or send the sector lower. and robertdy near roe plays bernie m bernie may do you have in a legenda legendary movie. "power lunch" starts right now. and welcome to the second hour of "power lunch." let's check where the markets are now. the dow has been building some momentum throughout the day up 170 points. shares higher thanks to strong earnings and the raising of their guidance, stock is half percent lower but has been volatile throughout the day. things aren't so good for camp
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bell soup. it keeps seeing declining sales. brian down to you in d.c. >> all right kayla thank you very much. i'm live in washington, d.c. today where the president leaves for the midwedle east. congress uses the nine day tour to reset the time in the white house. if he thinks the trump investigation will hurt or help the chance of passing. later on the president's first foreign trip, a trial by fire. coming up in just a few minutes. big hour ahead back to you. >> the u.s. dollar index lower than it was when donald trump was elected. similar story for the 30-year yield. so what does this mean for the economy, the trump agenda and most importantly the fed? steve do tell us. >> melissa, a key bomb imtarts
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have taken a round trip to rethink the powerful possibilities of the president. yield on both the short end surge after the election. everyone got their party hats out and start celebrate the long awaited growth. the spread is steadily flattened to a point where it's no steeper now than when was when the president was elected. parties hats went back in the draw after three weeks of readings. suffered repeated hit backs with the healthcare and timing of the tax plan. the dollar for the similar round trip reflects better growth prospects in europe. china was declared not to be a currenciman plart and the threat
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to draft nafta. hadn't eliminated the margaret still betting on a rate high but the praerj d-- of course stocks have not taken may round trip. both of these developments i just spoke about are positive for stocks. lower yields on long term as well as a softer dollar. >> depends on the reason in part. if it's low -- if the dollar and yields are low because there's a question about growth here, then that's another story. >> if i had my choice of better growth prospects or -- and higher stock prices from that or low yields because of lesser growth i take the -- for sure. >> but if the president tweets or speaks that can change on a dime. >> right. but the other thing is true too. even a semblance of order in the white house. if they got through, i was going
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to be a week but now it feels like a day, without a scandal where it seems like they got their act together i don't think you could make a bet right now on the probability of things like a tax cut. i don't think you can pick a number or time or either. >> so why did the prospects or the fed funds -- why did they come down for june? >> they come down along with -- it was yesterday when the stock market came down it was down 60%, it's back up a little today. it was high 80 -- >> starting coming down. >> june is still baked in pretty much. it's the december one to watch at this point. i think the idea that you're not going to get any of the stimulus this year, more and more you hear the street talking about any of those policies are 2018 event. >> steve thank you. leslie. >> take a look at shares of grub
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hub, their falling today after facebook is allowing for a competing order food option on its main navigation passage. this is a feature that's an expansion of a previously announced deal with delivery.com and slice with facebook detail back in october. back over to you. >> leslie picker. thanks so much. stocks recovering from wednesday but that hasn't stopped some investor from taking money out of the market. bank of america says $9 million have been pulled from the the record this week. let's bring in steve, good to see you both. i'll start with you, what do you make of the funds lows and where is the money going if it's being pulled out of the u.s. market? >> you have started to see flows into the european markets or broadly emerging markets.
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you have seen the shift from active to passive that has accounted through the first quarter. >> steve, why is it going in that direction? is it political, is it the fact that there have just been gains for so long? the bull market here has so sustained that people are losing confidence in it or is it something else entirely? >> i think there's some uncertainty over the trump agenda and headline risk. when we look underfete we come out to a constructive view. we got earnings of 25%, the fed is raising at appear interest rate. we have a constructive view and think markets are going to march higher in the coming year. >> we think about what was the buzz ward last year in earning and it was the credibility volatility. the dollar softness is getting some attention this year.
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there was a quote in "the washington post" this morning, looking at the edgeness in europe as they await the president, they were tag about this potential for a u.s. vacuum in leadership. there's a sense of that could drive the dollar even lower. do you see that as a real risk and what do you think the dollar levels to watch are? >> look, i think the dollar's going to be quite stable from here, simply because after the election there was a lot of optimism about overheated economy, about a strong fiscal stimwills, about rapid arising rate. some of that has subsided. you see a much stronger growth and europe which i don't think will be undone from a visit from the president. you're going to probably see some tightening from bcj eventually from boj.
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>> steve, i get you're saying you believe many market gains have been made on the fact of fundamentals but when it comes to one of the sectors you like, when we saw it drop more than 300 points on the dow, the next day they didn't rover too much. so even though we have the notion of the fed down the road, you have the notion of perhaps 2% at minimum gdp growth for the rest of the year financials really suffer. are you worried that there is a political driver to that trade even though you think that the fundamentals is the primary reason why the markets overall have gone up? >> i understand the question, but remember the two most important things in terms of fiscal policy are deregulation tax reform. nothing that's happened so far has derailed deregulation which is a positive for the banks -- >> deregulation means a lighter touch in terms of rules or a
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roll back? >> absolutely. you have the delays on department of labor rule. the general story is this sector has been treated like a regulated utility over the course of the last ten years and we're getting to the point and time where the pressure may allow these companies to generate more earnings and return more capital to shareholders, we think that's positive. the pull back in the sector has been on rotation, it's been healthy towards growth saerkts but we think there's another rule on the roll back of the faculties. >> although the financials are negative. thank to you both. appreciate it. >> thank you. a rough week for retail, it's down more than 3% this week which would be the worst performance of the year. courtney reagan with a look at what's coming up next week. >> are we done yet? >> no you're not. >> week three of retail reports
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are a couple days away. the 20 or so names reporting next week are a mixed shopping back. wednesday and thursday there were the big days next week with the highest concentration of names reporting. look for lowes to post a john upbeat quarter. tiffanys has been holding its own even with the hit from the trump tour security restrictions. while home, in general category seem strange links and noble has a spotty sale. thursday we'll hear from best buy. walmart's results were good which may go well for the dollar store and burlington stores is expected to process expert from that off-price segment strength. ulta has been a beneficiary of the beauty buyers but ab ber
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chrome me back struggling for years. investors position yourself carefully we got another week to go. >> courtney thank you. let's take a look at the live shot this is air force one, president trump just left the hours on his way to andres air force base. he's leaving for his first foreign trip. saudi arabia, israel then on the europe. president, the first lady, jared kushner, ivanka trump and reince priebus along with him. tim cook testing out a glucose monitor. plus robertdy near roe plays bernie murder.gov. and brian what else is coming out from washington this afternoon? >> coming from the break weave
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going to talk about president trump's first foreign tril. also congressman john delaney will join us. there's a lot more today before big d.c. show. we're back after this short break. we've done well in life, with help from our advisor, we made it through many market swings. sure we could travel, take it easy... but we've never been the type to just sit back... not when we've got so much more to give when you have the right financial advisor, life can be brilliant. ameriprise ♪ ♪ welcome to holiday inn! ♪ ♪
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. and you are looking at a live picture of marine one, the president's helicopter, president trump arriving at joint air base andrews. his nine day trip will start with saudi arabia, followed by israel. we sat down with somebody who is very close to tax reform. it is the head of the american business round table and what did josh fulton have to say? >> it's interesting, we talked about the effort of what tax reform is beginning to exist of. trump plan has both including elimination of the state tax, cutting the top gains rate and personal rate. if the personal incomes tax changes were necessary or not was the question? >> the most important thing was the business rate and the
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territory. those two things i think will really unleash -- >> that's part of the personal -- >> a regular american citizen who gets a salary, i'd love to see rates come down and i think that'll be helpful for the economy but what we really need is reform on the corporate side because that's where this country is unexceptive right now. >> global zacs talent is apart of this. >> all the ceos in the business round table they're fine, they make a lot of money, probably like to make more but they don't need more money. they're pushing for tax reform because they're worried about the exceptiveness. >> and -- he doesn't think the tax reform has the momentum it needs right now in par because
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of all these distractions involved with president trump but he remains optimistic by the end of year and can get it done. just john harwood thank you very much. there you go you see the president donald trump and melania trump as they begin their journey. when the president's plane takes off we'll show you that as well. let's go to a congressman who can address the stuff john harwood was talking about. on-delaney of maryland. thank for joining us again. >> thank for having me. >> before we get to infrastructure let's go to what john harwood was talking about. tax reform everything we were talking about, particularly infrastructure seems to have to roll in a tax reform package. where we stand right now is anything going to get done in
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2017? >> i think it's hard. the first 100 days of the presidency haven't again him the momentum i think he would have wanted around tax reform. there weren't any details around it, i thought it was too early to put it out, things like infrastructure they have to be done as part of tax reform. the only way to really generate any review knews is part of tax reform. >> you been it's hard but does it mean it's impossible -- >> nothing is impossible -- >> you're talking, are the gop and democrats talking, can they still get it down with what's happening with the mueller investigation? >> i think it's hard to get tax retomorrow done to begin with. i think international reform we can get done because the problems an issue there. they're still distincted. it's hard to do tax reform in the united states until you resolve that because so many
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businesses are now unin cooperated and they don't pay taxes as businesses they pay them as individual. so the tax rate debate leaks into the business reform debate. tax reform first, that's actually the real problem. $2.5 milli $2.5 million sitting overseas. we should be fixing that and doing that with infrastructure, put up a big win and try to have comprehensive tax reform. the proposal the president put forth around tax reform amount. there's not enough votes in the congress to do tax reform that way. >> congressman that's very interesting your idea because i talked to someone in the white house recently and said what do you think we're going to end up on tax reform? and the answer was we're going to do business tax reform we're not going to do personal that's too big. are you suggesting only the international part of business
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tax reform or the entire business system can that be broken off? >> i think it can be but there's been very successful lobbying in the congress but leader partnerships, ll cs to basically say you can't do corporate tax reform unless you do us, that's unfair. even though corporations pay two taxes they've managed to latch themselves -- >> that's because of the the majority quote corporate corporations are one or two persons filed under corporate corporations. >> i agree. >> the two are not business and personal it's international and everything else. >> that's how i think about it. ideally you could do business as international. companies can defer paying the taxes by keeping the money overseas. >> let me ask you -- >> corporate tax reform could be
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done if we had the right mind set meaning you could lower the right by ending deductions. even though the tax rate are higher at 27% you average all the companies it would be at 20. so that's how we should be fixing the problem. >> let me ask a more blood question. it's specifically the legislative generally. do you get anything done, congressman, when you got a president leaving on a nine-day foreign trip who's under investigation by a special prosecutor or does congress duck and run for cover? >> clearly as i said, this is a huge head winning getting anything done, known of us have any idea how this is going to play out. he's made it hard for democrats to work with him on stuff, i don't think it's impossible. he's made it hard for republicans who are in kind of moderate states or districts to work with him. so what he should have done is should have started with something other than healthcare which is in credibly not only
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complicated as he learned -- >> his constituents though. >> he could have came out on the block and said what the country needs is a $1 trillion investment program and fix or tax code. >> congressman john delaney we didn't get into as much of the infrastructure bill as we liked but everything's under that cover anyway. thank you very much. john harwood thank you. as you can see folks the president about to depart for his first foreign trip, the stairs are away, the plane door is closed. you saw the president and the first lady walking on. the next stop for air force one will be reyaud saudi arabia. kayla. >> thank you brian. what are the companies changing business saying how the business will change. coming up. it comes to technology, i need someone that understands my unique needs.
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jared kushner and probably many others on the trip abroad. first stop, riyadh saudi arabia but this is air force one as it's preparing for take off. >> we asked ceos how artificial intelligence is impacting their business. julia scott with the answer. >> one of the directors is watch out workers. automation will reduce the size of the work force over the next decades. the majority of founders and ceos of the disrupt for companies predict that over 25% of america force will be replaced by machine software over the next couple of years. predicting that nearly two out of every five u.s. jobs are at high risk of being replaced by robots and artificial intelligence over the next 15
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years. as artificial companies prepare for a future with fewer workers it's no wonder that 2/3 of those we surveyed said artificial is critical to their business. i've spoke to jeff borden, he talked about the rise of ai. >> artificial intelligence is here and you're getting a set of artificial intelligence start up. every company i work with need that expertise right now. open table, pinterest, they're hiring these engineers because they make the service better. >> the disrupter 50 companies using ia are amidst a range. from marking advertisers and don't forget driverless cars. find more frommous list on cnbc.com. >> thank julia. meanwhile president trump departing for his first overseas
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. hello everybody i'm su herrera here's your cnbc update at this hour. deputy attorney general rod rosenstein briefing house members in a classified setting. here's what one gop member had to say afterwards. >> what i learned, and i'm very satisfied with is the special prosecutor will have the breath of scope necessary to follow any and all leads directly and gentle to the russian team to influence our election. crews began to remove the last of four confederate monuments in new orleans. the last to go a 60-foot high pedestal of general robert e lee. it stood there since 1884.
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the american cancer society says one and five cancers diagnosed in the u.s. is a rare form of the disease, rare cancers are common in kids and teens. findings are concerning because rare cancers are much harder to treat. that is the news update this hour. back over to you melissa. >> thank you. here 90 minutes away from "closing bell" on the wall street. dow joans industrial average up by 174 points. the das knack is higher by 8.10 of%. let's get to jackie. >> crude moving over the $50 mark today and closing over that level as well with a 2% gain on the day. taking oil higher than 5% this week it was more talk of opec cut ex tngss. tensions and venezuela traders
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telling me something they're watching closely as well as adding to some of the support here. tame maybe with sense lower the recount went up again today, 18 weeks in a row but no one pays attention to the numbers at this point. u.s. production holding steady at 9.3 million barrels today. >> thank you so much. tim cook has been seen wearing device that track blood sugar. christina what do you make of apple push further into the work space? >> we're finding it so fascinating kayla, because last month we found out apple has a secret team building products for people with diabetes. specifically they were trying to do noninvasive glucose monitoring. now we learn that tim cook has been wearing this device around the apple campus.
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we spoke about that in a room full of student and how helpful it's been for him personally. >> so what exactly did he say when he was speaking in scotland about that? >> well he said that he had been tracking his blood sugar for weeks and that he was learning how the foods that he was eating, especially if they're high in sugar were impacting his blood sugar. all of that was leading him to make healthier decisions. we seen tim cook on a lit of a health spree recently. just told jim cramer he's lost 30 pounds. beyond this this could be a hint at future products. we heard that he was wearing a poe toe type on the apple watch potentially a future version of the watch. in that we could see more glucose tracking adding to thing like steps. >> did tim talk about how accurate it is and whether or not they'd need fda approval if
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it came to market? >> he did not talk about that but certainly they would need fda approval if they were building a device of their own. right now they can connect with existing fda approved glucose monitor and have that device show up on monitors like the phone or apple watch but this would be a new step for apple if they were to bill their own sensors in house. >> thanks so much. so is healthy the next big thing for apple? let's bring the robert. employed to have you with us. the watch is a small percent of revenu revenues but could this be another brick in their services to get into health in a bigger way? >> yeah. i think to your point there's a shortly and long-term impact. short-term it's not super meaningful. if you look at the watch that's about 2% revenue.
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we have it going into 3% revenue over the next three years. if you look longer term, apple is -- that you are going -- 260, 270 we expect next year. they need enormous new markets to go after if they're going to sustain their growth. i think health is one of them. >> rob, is this something you think apple is dabbing in at this point? we know the company has a history of sample and trying thing but whether they bring the product to market is something else entirely. what do you see coming forward with this product? >> there's dabbling in -- if you look at the second generation of today's watch, fitness and health was already the big knew focus of the watch, so they're already starting in that direction. if you look at it from a censor
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stpt the last big one everyone has seen is heart rate monitoring which is great but i think the market is looking for what's next. in something like blood sugar would be spectacular. >> how do they turn from from buying the watch to the censor being on the watch? krsh i'm not sure if they'd know the answer yet. one you have the platform, the platform is the health app that they already have which is sort of a hub for all kind of fitness tracking, health data. so that's kind of neat. you start with the health app or the essential depository of data and you add from there. as i said earlier whether this is something that the integrating on the watch, not likely but it can be a ban. and you could have smart ban that have censor to them as for the watch and have the data flowing to the health app.
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owning the -- the real strength that apple would end up with. >> rob we'll leave it there. thank for joining us. deks come also makes the glucose monitor based on christian sorts, that stock is down by 1.6%. over the past months it's been down by 8.6%. we're taking a look at the em pact there. brian down to you. in the meantime president trump embarking on a nine-day foreign tour. how will the president be sieved overseas. fred is also in saudi arabia which is the president's first destination. this is a learning curb fred, to go from your first trup abroad as president. why would he make this his first stop and what is on the line?
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>> first of all, this may be a much friendlier audience than he's got in washington right now. blue the saudis and israelis are the longest standing allies in the region. they did not have a good relationship with president obama. i was just there and the hopes are enormously high. first of all the saudis believe this president and his administration understand their suspicions of iran much better than president president obama did. second of all, he's coming to do business. they have to change their economy in a low oil priced market. president trump arriving as an oil producer or gas producer as big as saudi arabia so he's coming with a plane load of ceos with him. thai going to announce some deal -- >> that type deal pronounced? >> i don't know whether it'll be shell francing but it'll a
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service deal coming up. you're going to have some defense deals that will be announced. a lot of them that were in the hopper being announced. but bringing the ceo along also sends a message. >> what would you advise the president to do? what does he need to get out of this trip over all? he's got the g7 in it la, he's got saud ra arraign ra -- >> he needs to show he's a states man and that he can carry a message. he needs to the to mick a misstatement or tweet with the hope. >> should he not tweet at all? >> there have been people advising him on national security issues to stay off tweeting. and so i think he'd be well-advised not to go there. on the other hand he may want to tweet when he does deals in saudi arabia. with netanyahu it'll be
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something else. so he's got to get that tone just right as well. >> we're going to find out. he should be landing in about ten hours from now. fred kemp of the atlantic counsel. thank for joining us. melissa. >> all right brian. the s mhtf up 60% in the year should you buy in? "trading nation" is next. we'll talk to the director of the new movie about the madoff scandal. that's coming up on "power lunch."
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welcome back to "power lunch." the gain there 23 point, dow up by 192 points. industrials helping to lead the way. caterpillar ge and boeing are helping the dow surge. take a look at the action for the week. we're just about flat for the week by s&p 500 we're down by 1 1.0 of percent of the week. they're seeing a 5th straight week of gain. aaron gibbs and craig johnson. guys good to see you.
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aaron what do you make of this move? do you think they can go higher? >> we're looking at impressive growth when i comes to chip makers. not only are they seeing production they're also seeing high prices. we're seeing earnings growth that have doubled from the forecast in the beginning of the year. we're look at 2% earnings growth for the industry and 12% revenue growth as well. so, top line and bottom line big double digit growth this year. intel just beat their earnings so over all looking very positive. >> and craig, it's almost shocking that it could gain 1.8% this week when the s&p is flat. >> take a look at the chart, this group is among the strongest in our work here today. stock index up 17%. everything is positive, all i'm
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here the positive news and right now i'm starting to seedy verges crop up when i look at the indexes. they're not making new highs along side the indentation itself. i agree with erin, the fundamentals are good but i'd rather trim some off the table and will selective investigating in some of the chip names. >> all right erin and craig thank you very much. back to brian in d.c. >> thank you very much. coming up a new movie on bernie madoff starting robert de niro and michelle fiver. what was the most surprising thing they learned about the madoff scam, we're going to find out next. [vo] when it comes to investing,
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so you are making money off of the trades? >> there were no trades. >> what do you mean there were no trades? >> i made them options they for fake, returns fake. so whenfuls the last trade you executed? >> 15 years ago. >> who else knew? >> i acted alone. >> that's part of a story we at cnbc remember too well, 2008, investing legend, bernie madoff, arrested for the largest american fraud in history. the size and scope shock the world. madoff was not a legend at all, but rather just a conman and a common crook. on saturday, hbo debuts "wizard of lies," with us now is the director, barry, and diana, the
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author of "the same name," of the first writer to visit him in prison. barry, diana, thank you for joining us. >> thank you. >> barry, you wagged the dog, a lot of movies. what's the most surprising thing about the story in putting this together? anything shock you? >> a few things. i think the family structure where we -- that's where we begin, and then expand out into the financial things, but the devastation that it brought on the family and the devastation to the thousands and thousands of investors, it's shocking to the degree it happens that way and in terms of what happened with the family. >> and when -- that's the question that we all have, barry. i think this bernie madoff, quiet guy, never gave interview. >> very quiet, right. >> had a staff, a company filled with people. do you believe as the director of the movie, that people didn't know what was going on? >> the family didn't.
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certainly. >> to you? do you think people knew? just kind of did it because it paid well? >> i think from, you know, what diana wrote about, you can't find the connection, certainly within the inner circle, they didn't know. i don't think they knew on the 19th floor directly, but we don't know. the family seemed to be blindsided by this. that here it is that this is -- this is your husband. this is your father. all the sudden, one day, this man is suddenly there who had done all this despicable transactions. >> any sympathetic characters in the madoff family? a son committed suicide, and another lives in exile, but nobody cares about ruth's financial woes. any sympathetic characters? >> interesting you ask whether one feels sympathy for them. empathy, yes. the heart of this story is that you place your trust in someone,
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and that person betrays you. well, that's as universal a human experience as you can come up to. it goes back to jacob and esau in the bible. that fear of betrayal, we all fear that experience. there's a universality to the core of the story, so empathy, absolutely. >> did ruth know? >> oh, i can't find a single shred or note that suggests ruth knew anything about this. and, indeed, i would be astonished if bernie could have stood her scorn if she had known. >> i think, barry, that's the most incredible thing about this story. is that as we showed in that clip, deniro saying 15 years, all made up, no trades, no nothing. many employees, a wife, friends, family, nobody knew.
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is there an answer how he kept it so secret? >> well, i mean, i think -- you're looking inside of it, you say, well, where's the sec, the safeguards -- >> they poked around, did they not? >> they didn't poke around in -- >> not well enough. >> not enough. all they had to do was make a phone call to check the number as we describe, as comes up in the book, and all they had to do was check this number, would have found out everything was a fraud, and the agency didn't do it, so there's a lot of people at -- in the sense, who knew, who didn't know, but we say within the family and according to the fbi, they never found connections whatsoever. >> i think what continues to feed this suspicion, that you're expressing to some degree, is the mistaken idea that bernie did this all by himself. how could one man pulled off this fraud by himself? that's not true. there's a dozen people who pled guilty or convicted as accessories to the crime.
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>> that still doesn't seem like enough. >> oh, you know, it's interesting, he automated it. as he was famous for automated otc stock trading, he automated this. >> when he had a business. >> yes. but he automated fraud. >> yes. he did that as well. >> do you believe that the -- don't give away too much, obviously, of the movie, saturday night 8:00 on hbo, barry, which is the sec, madoff was a crook, but the sec blew it. >> absolutely. if they did the work they needed to do in the film, the scandal would have blown up sooner than it did. >> barry, diana, "wizard of lies" saturday night at 8:00 on hbo. thank you very much. >> appreciate it. >> check, please is next. i am benedict arnold, the infamous traitor.
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even though it may seem okay on the equity side of things, there's signs of caution here. >> news of target that came out on the air. target tried to buy casper for the price tag of a billion dollars, but decided to invest in its own business okay. i have casper and the competitor. i'm an equal opportunity matress supporter. target is trying to replicate something from walmart's playbook, how well that jet.com bet played off with the 63% rise in e-commerce sales. >> guys, my take away, you live and die with every day here, but i'll say for my own benefit on infrastructure, couple take aways, remember, there's no infrastructure bill. we hear that a lot. infrastructure bill, there's not. it's a collection of smaller bills that we have talked about that all have to latch on to tax reform from a macro perspective, tax reform is jobs one, two, and three, i say that from the
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legislative perspective, if it's not on tax reform, it's not getting done. latch the bills on to a bigger bill, and public-private partnerships are not a little thing. thanks for tolerating me, guys, back to you. >> before tax reform, got to get a budget. >> exactly. >> true. >> next step. >> good luck. >> thank you for joining us, and "closing bell" starts right now. ♪ hi, everybody. welcome to the closing bell, i'm kelly evans. >> i'm mike santoli in for bill griffeth today. maybe the market's are having issues. >> is that a reference to the salad days? >> see. >> when they were green in judgment and -- >> go further back to the market sal salad. tuesday, at least. big day for stocks after the selloff in the week, industrials, financials, and energy help the move, but a firm
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