to own. it's very undervalued and i think that you're going to continue to see inflows. it has had a sneaky rally year to date. >> nikkei get above 20,000? >> i think lit get above 20,000. you know why -- they have monetary and fiscal support behind them. >> good having you here. >> thanks. does it for us. "power lunch" starts now. >> it sure does. here is what's on the menu. the clash over climate change. more and more ceos urging president trump to stay in the global climate deal. his decision is coming up. we'll debate straight ahead of it. is it all about heavy discounting and incentives above auto sales? plus the multitrillion dollar deal opportunity that's opening up in the auto sector. plus, is it peek burger? consumers and investors are loving it right now. but for how long? we'll speak to the ceo of one burger chain whose stock is up 35% in three months. "power lunch" starts right now

♪ cheese burger in paradise ♪ heaven on earth >> ho hum another month, another new high for your money. the slow meltup marching on. the nasdaq looking at that hitting a new high. the oil and energy stocks all the big eight oil names, exxons, chef rons are higher. on the other side of the trade, yeah some of the real estate stocks are lagging, but overrule a good day. what individual names are making investors money today? the casino stocks. look at that. las vegas sands are up big on some big numbers from china's ma cow. bikky? >> good afternoon i'm becky quick. here is what else is happening at this hour. a government watchdog said that medicaid was overcharged for epipen from 2006 to 2016. that is far more than the amount mylan agreed to pay the settle overcharging allegations. construction spending posting its biggest drop in a

year in april. a sharp upward division pointing to underlying string. illinois credit rating getting closer to junk. its debt downgraded after lawmakers failed to approve a budget. they have the lowest bond rating in the country. we'll have much more on that coming up. but we begin in washington, president trump set to unveil his decision on whether to pull out of the paris climate accord in less than two hours. he'll be making a live statement in the rose garden. let's get to eamon javers for the very later. >> there's real sus sense on this going into the announcement. we were led to believe that the president was dead set on pulling out of the paris accords. now though maybe some different air here at the white house. we'll wait and see what the president has to say. there has been a big push by business executives to persuade the president to stay in the paris accords, including from megawittman who talked earlier today about all of this. we also saw there you see an ibm tweet about why ibm supports

staying in the paris accords. we saw la renopau jobs speaking today. the widow of steve jobs in favor of remaining in the accords. here is what she had to say. >> i think like everyone i agree it would be a colossal mistake for the united states to pull out of the paris accords for every reason that's already been outlined. obviously economic, obviously that's the waive of the future. obviously that -- that's where the momentum is. >> i talked to a white house official here inside the west wing and i asked the white house about this push by ceos to pressure president trump to stay in the paris accords and here is what the official told me. the president has been talking to people on both sides. we've been clear about that and we're continuing to do it. ultimately the president is going to make what he feels is the best decision for the american worker. so, guys, that's the frame that president trump is looking at this decision in as he goes to

the rose garden at 3:00 p.m. what's best for the american worker. what that is, we'll just have to wait and see. back over to you. >> is it possible that he might suggest that it gets submitted to the senate for ratification? that's been some folks out there have argued whether or not they like the deal or not make it a more democratic process at this point. >> yeah, look, i think anything is possible at this point. you know, the expectation is i think we're leaning toward the idea that he would want to pull out because that was his campaign trail promise, but could he finesse this and have some middle ground solution, kick it to the senate would be one way of doing that. another way of doing it would be to -- whatever his decision is to have a variety of caveats and timelines in there to make it not exactly clear that he would firmly come down on one side of this or the other. you know that his daughter, ivanka trump, has been pushing him very much to stay in the paris accords. so we'll see whether this sort of populist wing of the white house wins here or the globalist wing of the white house wins here. it's really up in the air. >> both sides have a lot of influence.

thank you. >> you bet. govern jay powell sitting down with steve leesman for an exclusive interviews. we have highlights of that interview along with jobs data. >> we'll get to the jobs data. first i want to tell you about fed govern jay powell says he sees three rate hikes meaning two more would be on the way if he had his way and also like to cut the balance sheet this year. powell said that all of this was true even though he doesn't see much effect coming from fiscal stimmu lus or congress this year. >> it's a 2018 event. the effects on the economy if any would be felt in 2018. it's very difficult to incorporate anything into 2017 because we don't know the timing. we don't know the scope. we don't know the character of what will happen. >> markets are starting to feel that way, too. powell is the head fed official when it comes to banking supervision and he supports rethinking parts of dodd-frank financial reform act that banks and the president would seem to support. >> i think it's our obligation

now, as we reach completion of it, to look back over it and ask what aspects of it may be redundant or utterly essential and should be protected down to every letter. but there will be some adjustments and i think that's only appropriate. >> powell's name is mentioned as a potential vice chair for supervision on the fed and en as a potential fed chair. asked if he was interested in either job, powell said he has plenty of work to do already but she didn't say no. he just said no comment. i want to get to that jobs data, guys. >> sure. >> 253 on the adp number which was way out above what was expected. >> 180 was the expectation. >> the number that's expected for friday is right around that area. so what you see -- look there's the nonfarm payroll estimate at the bottom, 184. there's upside risks to that number at 184, but there's been a couple noticeable misses by adp, but reluctance to get behind it full throated. >> there's two things i loved about this number, steve.

>> i like that you felt passionate about the number to use the word love. go ahead. >> strong like. >> strong like. >> strong like. small medium and large companies all saw job gains and the most important thing to me was that there was 58,000 jobs added in trade and transport. >> interesting, right? >> really interesting potential leading indicator of future strength. i don't know if you've noticed, i sure have, lot of trucks on the road, generally good economic sign. >> and bad for traffic. but did you also notice the 37 -- >> strong like. >> did you notice the 37,000 construction jobs, which is also very interesting with what's going on. nfib also out with their report. they give us a preview of their report. it says that small business is also hiring. another indicator. we have this idea, great jobs but we don't know what's happening with inflation and overall growth. >> steve, thank you very much. >> pleasure. >> we will see you tomorrow morning to talk more about the jobs report, too. >> big jobs report 8:30. it's the first trading day of junes. stocks mostly higher with the

nasdaq and s&p hitting fresh intraday highs. one group of stock has been getting pummelled recently is the banks, names like jp morgan, goldman all down. that's something it hasn't done since march of last year. so what can we expect from this sector and the broad markets as we head into the summer? let's bring in kate moore. kate, we know that sell and may go away. that hasn't worked for five years. what about the june swoon, is that a real thing? >> people like to come up with catchy phrases. i think what we need to focus on in june is guidance from the kpaempbs some of what we saw with the financials yesterday about their future expectations. and as we get early announcements for second quarter earnings season, pay very close attention to the tone as well as as i was saying revisions to guidance. i don't expect the market to be on a tear throughout the summer. but i also don't see a

significant selloff. i just don't feel the market sentiment is there at this point, but actually the bears have been very disappointed by the magnitude and duration of the recent pull backs. >> don't fight the momentum here, in other words? >> i'm sorry? >> don't fight the momentum? >> i don't think you have to fight the momentum at this point. this is not to say that you put all of your chips in just the high fliers. i think there are a lot of stocks that are being underrecognized by the market for their earnings potential that we should really be taking a look at. stock more that fall into value camp across all sectors. >> when you look at the financials, the fed is very likely in many people's expectations to raise at least two times, according to steve, over the rest of the year, why are the financials underperforming when we're looking at rate hikes coming like that and potential for more deregulation? >> i think there's underdue focus and too much focus, i would suggest, on what's happening to the ten-year and similarly this small bits of guidance we had from a couple of the ceos from the big banks

yesterday. not paying attention to the big picture, less paying on the regulatory front and less pressure additional regulation. the fact that the fed will likely, this is our view, hike another two times this year go mostly to the bottom line of all of the banks as they're not passing on all of the higher rate on to depositors and the fact that the u.s. economy is in really pretty good shape, so we should see -- yeah. >> i'm sorry to jump in, kate. >> on going earnings. >> you're running out of time. to further becky's point, it's not that they untsds performed couple big name financials in bare markets. discover financial, capital one, they're all down 20% from their 52-week high. why do you think those kinds of stocks are not only underperforming but actually in a major correction? >> i can't comment on individual names. all i would suggest is there's been a huge preference in the market for perceived secular growth stocks. that falls very much into the tech sector and there's not a recognition that some of the companies that have struggled a

little bit in weaker economic periods should do well in what we think is a sustainable and stronger economic period ahead of us. >> kate moore, leaving on an optimistic note. thank you. appreciate it. all right. still ahead, one of these burgers is not like the other. it is loved by its fans. in fact, it won a best burger in america in 2014 survey. and, it is also the least expensive of the bigger burgers. the name and the stock behind it coming up? but first may auto sales are. nay slowed. will self driving cars ultimately eat the entire industry, the 7 trillion dollar conversation coming up next. there's nothing traditional about my small business. i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs, and i get back to business. ♪

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how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. welcome back, everybody. the major awe tor makers are out with their latest sales figures. they are up. the numbers don't tell the whole story. phil with the whole story. >> yeah, this is one of the rare days where you see auto stocks moving higher. the last month in particular lackluster numbers. thooes these are not impressive numbers. all of the auto makers only ford of the mayor auto makers of the big four reporting slightly positive sales. we should point out that ford and fiat chrysler did a little better than expected. toyota and gm a little worse than expected. what stood out about sales last month the reason that the stocks are higher today because it looks like incentives moderated versus april. yeah, they're up year over year,

but it looks like perhaps we've seen a point where they're stabilizing and showing discipline. the car business sedans are just not in favor. it fell again last month. the sales rate expected to come in between 16.6 and 16.9 million vehicles which brings up this chart i want to show you. this is a rolling three-month average for auto sales. we are looking at the first three-month period, three-consecutive months where the sales pace will come in below 17 million. that will be the first time since july of 2014 that that happened if we don't hit 17 million today and yet as i mentioned the auto stocks have been moving higher today. take a look at shares of ford. one reason why ford is showing a nice little bounce today, a, it outsold general motors last month. don't make a lot out of that because there's a lot of factors involving fleet sales, et cetera, but you're seeing discipline when it comes to incentive for all the auto makers and that has investors much more optimistic than

perhaps they were a week or two ago. >> got it. phil, you also have data on just how big driverless technology could be for the auto business. what is it? >> right. this is a new study from intel that they just released within the last hour. and this is interesting. when you look at the potential when it comes to driverless vehicles, autonomous drive vehicle which is we know really aren't going to take off for the next 15 to 20 years, but really when it starts to ramp up by 2035, by 2050 intelest matds the impact, the economy for these driverless vehicles 7 trillion dollars worldwide, a number of consumer and business services will be leading that charge. and there's also the benefit of potentially almost 600,000 lives being saved. take a look at shares of intel and we're showing you since march 13th because that's when the company announced it is buying mobileeye. this deal is expected to close by the end of the year. you can't talk about driverless cars without showing tesla, which again was up earlier today

and it's pulled back a little bit. guys, it's hanging around that 340 mark, much higher than many people ever thought it would be. >> yeah, interesting to hear dick this morning talk about the valuation of tesla. now he's an investor. but let's move on. phil, stick around and we'll talk cars and if those driverless cars will eat the entire industry and gm and ford are eating themselves right now. let's bring in adam jonas from morgan stanley and paul editor of the revs institute. paul, i'll start with you. becky made the comment that was ironic that ford had the best sales growth given that the ceo was fired two weeks ago, but is the industry still not learning the lessons of some of the worst apparel retailers. even into what appears to be a slowing market, let's keep pumping out the inventory. we have too many cars in the lots and no pricing power. >> well, i think ford's inventory numbers were actually down in the month of may. which would be a very healthy sign and of course one reason for investor cheer.

but, i think you have to say honestly by any historical measure car sales are pretty darn good right now. the economy is in good shape. we've had seven-straight years since the gm bankruptcy of rising car sales. last year was an all-time record. this is a cyclical business. some cooling off was inevitable. guess what, it's happening. that's what was supposed to happen basically. >> well, you know, listen, the average age of a used car on the road is still 10 or 11 years. at some point those cars are going to break down. do you remain bullish? listen, if we go to 16 million, that's still a good number. are you bullish over the next couple years? >> well, i think the real question is can these companies get through a downturn, maintain their profitability and maintain their dividends? i think there's a good chance of that actually. i really do. they won't come through unscathed because it's a very cyclical industry with high fixed costs, but the fixed costs are lower than they used to be thanks to the restructuring of the industry under bankruptcy

happening in 2009. >> adam, looking at the challenger job numbers earlier this morning, a big chunk of the job losses were from the auto industry a lot of those from ford. is that a good thing when it comes to being a shareholder? >> um, the jobs number could be related to product changeovers, which ford and also some of their competitors are going through right now. i wouldn't read too much into that. i wouldn't underestimate the creativity of the auto industry and to find new ways to keep the auto credit cycle going. so i think that might be just be noise, becky. >> what about the -- does that mean that you think that even though they appear to be disciplined right now they won't be later when it comes to incentives, discounts, et cetera? >> we think that the challenges facing the auto industry over the next two or three years or three to five years might unfortunately bring out some of the worst in the industry. there's been a lot of changes, a lot of positive changes in the last cycle in terms of health care costs and pension and more flexible wages, but frankly

there's a lot of things that are just as challenges as before. too many obsolete cars. this tech revolution we think the 7 trillion might be on the low side, but we have the 11 1/2-year-old cars out there. who is going to ensure these cars if we have dramatically safer new cars propelled by new technologies that make the car on the road uninsurable and possibly obsolete. there's a credit problem in the making here as well. >> so i'm confused because then to me that sounds like, wow, there's a whole wave of new buying coming if you have to get those cars off the road. >> uh-huh. so there's two jets of -- >> is that good? >> well, that's one argument. we call it two jets of water. the one yet of water is auto company is looking for replacement demand, bring out new sexy new product and give people a reason to buy. the problem is nine out of ten new car purchases involve a trade-in or off lease vehicle. there's 2 trillion dollars worth of cars on the road in the u.s.

we think that car is being devalued and obsolete at accelerated rate. so your devaluing the currency that you have at a dealer and the ability -- yes. so we think like in nature, sometimes in financial markets and the auto industry starting at year eight of this credit cycle we think that the fall and used might progress faster than the urgency to buy. >> got it. they're not tradeable if that's a phrase. got it. thank you, adam. interesting point. adam jonas and paul. let's get to kate rogers who has a market flash for us. >> we're watching shares higher after lynn supervisory board approved 35 billion merger of equals. this will create the world's largest supplier of industrial gas. linde praxair expect it to close in the second half of 2018 and look at shars of praxair, they are higher than more than 2% on this use. michelle, back to you. >> thank you, kate. so you might think you wouldn't have a care in the world if you had a lot of money. not so. we'll tell you why millionaires are more afraid than ever and what's fueling that fear.

plus, walmart making a major move to take on amazon as it prepares to meet shareholders. we are live in bentonville, arkansas. don't move. >> announcer: the cnbc trend tracker live data board is brought to you by --

welcome back, everybody. check this out.

the dow moved lower just after the opening bell this morning, but since then it's been on a steady climb higher. in fact, the dow at this point above its all-time closing high. that all-time closing high was 21,115 set back in march. take a look right now, dow futures are up by 117 points. to get to the all-time intraday high it had to move up to 21,169. it is goldman and united health leading the way right now. well, it is that day already, walmart media day. this also typically comes with a big announcement. it's also national say something nice day. let's go to down right kind courtney reagan live from arkansas. >> what a beautiful transition and toss. thank you so much, brian. it's nice to see you. so i am here in bentonville, arkansas, which is of course home to walmart and the world's largest retailer is coming out with a very interesting announcement right now. next time you order something from walmart.com or jet.com if you live in three cities, it

might be delivered to you by a walmart store employee, not ups or fed exor insta cart. in three cities, two in new jersey and one in arkansas, walmart has been testing this program for about a month where employees can volunteer to sign up to deliver packages on their way home from work. there's a proprietary app that walmart has built and it lines up package deliveries with worker's routes home. the goal is to minimize any extra driving and more or less pay the employee for deliveries on the route they will be doing. hundreds of deliveries have already been made. they do get compensated but walmart is not telling us exactly much. the goal is to lower the cost of the last mile delivery. walmart won't break down the costs but mackenzie estimates the last mile, the final leg of the destination can account for as much as half of the total delivery cost. this is also probably a step to get even closer to offering same-day delivery.

walmart has 4,700 stores and here. guys? >> all right, courtney. thank you very much. we were just sitting here trying to f not. i think we do. michelle and i are -- >> i'm good with that. >> yeah. i was in an area where you can't get amazon same day or next day recently and i would love for walmart to deliver. there was a walmart nearby and bring it to the house. great? not so much? >> brian? >> i was wondering how many delivery options there would be. the post office delivers 70% of amazon packages. i'll give a shout outto the post office, they come on sunday. >> yeah, they do. >> i guess they're making overtime or -- >> amazon consultants and people who drop off in our neighborhood, too. >> until the drones come. controlled by robots. >> be ware of the drones. >> happening. still ahead, folks, burger price wars. can you guess which of these burgers is the cheapest? here is a hint for you, it's this company. the stock is up 35% over the last three months.

we've got the name for you straight ahead.

♪ hi, everybody i'm sue herrera with your cnbc news update for the hour. president trump will announce whether the u.s. will pull out of the paris climate accord at 3:00 p.m. this afternoon. the vatican which under pope francis strongly backed that accord, a u.s. exit would be a huge slap in the face and disaster for everyone. billowing black smoke pouring out of a store front after a massive fire broke out in chicago. it houses a restaurant and adjacent furniture store. united airlines says it will start flying between los angeles and singapore. the 8,700 mile route will be the longest to or from the u.s. westbound flights will take

nearly 18 hours. they will leave l.a. each evening and arrive two days later local time. it didn't take very long, somebody snapped up a vanity plate in maine using the mysterious term covfefe. this is what the plate will look like when it is released. and that is the news update at this hour. i'm going to send it back to you, miss michelle. >> you have to have a plate with enough letters on it, right? >> that's right. >> i did the 19 1/2 hour flight from new york to singapore. it was the longest flight in the world. it still exists. i'm telling you that was a coffee fee. that was a long time to be on the plane. i got covfefe on my legs. i had to stand up. all right. we've been asking you throughout the show if you can guess the cheapest burger. here is the answer. shake shack is the most expensive 4.29 followed by burger king and wendy's at

$4.19. we chose the big mac at mcdonald's, not the single burger, that's 3.99. the least expensive is habit burger 3.35. we want you to take a closer look at habit burger now which has been on a roll. shares of habit are up nearly 35% over the last three months. becky likes it already. she's taking a bite. >> i do. >> the president and ceo of habit burger. good to have you here. >> thanks for having me. >> so your stock has been on a nice run. where does growth come from in the future? you've done a massive expansion over the last several years. you've been ceo since 2008. how do you grow from here? is it just more geography or is it also what's on the menu? >> it's a little bit of both. we've been -- we've grown from over the last ten years from little under 20 restaurants to almost 190 today. we're currently in ten states.

and this year our plans for the full year for 2017 is to open between 31 and 33 company restaurants. they'll be split between the west coast and now that we've been on the east coast since 2014 between new jersey and south florida. >> i don't know if you saw "the wall street journal" today, but in the b section, they've got a big article about your business, your company's mentioned in it, how there are so many high-end burger chains out there that a lot of people have stopped going to them because they're tired of paying $13 for a burger lunch or dinner that used to be much, much cheaper because they're all conditioned to mcdonald's. have we reached peak burger, and are you potentially a victim of that? >> i really don't think so. the burger category in america is huge. it's over $250 billion annually. it's been traditionally dominated by traditional fast

food. but over the last probably eight to ten years you have seen a number of better burger concepts out there. some that are at those price points over $10. we have always tried to position ourselves as every day value. and as you talked about our price points, we believe that's a huge part of our long-term success in providing a great quality, fresh, made-to-order product at a very attractive price. and we'll continue with that strategy. >> tell me about the issue of minimum wage, labor costs, how much is that either pressuring margins or making you think about the prices that you put on your food products? >> yeah. there's tremendous head winds in the retail and restaurant category today in regards to regulatory minimum wage issues. and that will cause prices to increase over time. >> michelle is eating one of

your burgers. >> just to inform you, the rest of you can't see, there's a picture of me or live camera feed of me as i took the bite. continue what you were saying. >> perfect. >> yeah. we, as i said, everyday value is a huge pillar to our long-term success and we will always be very sensitive to take price and pride ourselves on having a tremendous value proposition. >> do you see -- we've talked. sorry, russ. we've talked a lot about automation, you know, if you've been to japan you see sushi shops with one person and a bunch of robots. do you see the day where there's a fully automated habit burger? where there's zero employees or maybe one employee to make sure the robots don't break down? >> absolutely not. that is not who we are. and automation will play a role in the restaurant category, but we have always, you know, we have had 53 consecutive quarters of comp store sales growth and a

huge part of that has been the level of hospitality and service that we provide. while we're always looking to be efficient and look for ways to improve through-put, automation and the elimination of jobs and people are not on our short list of things to do at all. >> what about the decision to go mostly with ownership rather than the franchise model that we know from mcdonald's? why pick that instead? >> yeah. we have two domestic franchise partners that we're happy with, but we pride ourselves on being operators. we really feel that we can out execute the competition. and our historic cash on cash returns over the last ten years have been in excess of 40%. so, we don't feel that the burger category is a quick land grab and that people understand who we are.

and we'll continue our steady growth pattern as primarily company operated. >> russ, thanks so much for joining us. you two ready? come on. you have to do the tv thing. get your burger. >> i got the next tease. >> i've been eating it. >> thank you, russ, for putting the lunch in "power lunch." everyone is starving up here. thank you. >> i haven't had a burger in forever. this is really good. >> i've got the tease. now let's talk about a growing food fight of another kind. farmers gearing up to fight the cuts to subsidies outlined in president trump's budget. live in washington with more. >> brian the biggest reductions are coming from the crop insurance program. the administration wants to cap how much it will pay out and eliminate price protections. farmers say this would be a blow to the very core of their industry. i talked to derek sawyer, who runs a family farm in western kansas. he grows wheat, corn and soy bean and his very first harvest was destroyed by a deep freeze

and said he wouldn't have survived without crop insurance. >> crop insurance has always been a big part of what we do. more for the assurance that if we have a disaster that it will help cover the costs of production. it's definitely not a program we'll get rich over. >> now the administration does agree that crop insurance is critical to farmers, but they say that's exactly why they don't need a big subsidy to encourage them to buy it. budget director mick mulvaney says they're helping by rolling back regulations as well, but the trump administration has already run afoul of farmers on several big issues, pulling out of the transpacific partnership on one and disagreement on immigration policy as well. so guys, we'll find out if cutting crop insurance ends up being the final straw. back over to you. >> y lan, thank you very much. very clever. we'll see you soon. up next, we have your daily dose of street talk. tires and tools on the radar today. but first let's get to rick san

telly with today's bond report. rick? >> it's so fascinating. we didn't have a bad day. in fact, adp was pretty strong and we do see that reflected on the intraday chart. we're even basically trading a bit higher post that number in terms of yield down in price. but the long and short of it is we're still somewhat feeling if we can hold the bottom of this range, you see on this chart starting in october, but it isn't just us. it's many sovereigns across the globe. look at the guilts understanding the election coming up. it is also looking to see if they can hold the bottom of the established range from october and november. look at france, same scenario. the dollar index. will we hold? i don't know. tell me what the number is going to be tomorrow morning for jobs. and don't touch that remote. "power lunch" will return in two minutes.

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it is the first trading day of june and so far you can forget about that june swoon. stocks are marching to new highs once again. we are sitting near session highs right now for the major averages. the dow industrials sitting at an all-time high or above the closing high. so what can investors expect in the month ahead? dom chew has been looking into his crystal market ball or at least his magic eight ball and joins us now. hey, dom. >> all right, so becky, here is what we got. overall the june swoon is something a lot of traders look to because historical data suggests that june is typically not a great month. so with the markets now spotting investors a half percent gain for the month, it remains to be seen whether or not we can see performance last that way. according to our data partners, over the course of the last two decades, the dow industrials have actually lost over three quarters of a percent on average for the month of june and they're negative 60% of the

time. meanwhile, the s&p loses about half a percent. it's positive about just a coin toss 55% of the time as well. nasdaq up about .8 of 1%. if you take a look longer term as well for 20 years, bespoke investment group crunched some of the numbers there and found that june is one of the worst months over that span overall. august, january, june, september all posting losses on average between .7 of a percent and 1.3% and they're generally just around 40 to 55% positive during those spans. june swoon perhaps but you have to overcome a half percent gain if they hold, guys. back over to you. >> awful august is that what we're going to call it? we're in the media. we have to have catchy stuff for everything. dom, thank you. >> we have to put a headline on there. >> we lot ill lit ration. >> especial pli because we're illiterate. time for street talk. recommendations of the stocks you need to know. >> first up, sketchers, city group upgraded the company to a

buy. yeah, okay, visibility does remain challenged, however they say the risk/reward right now is more compelling. that sketchers is in the early stage of a new product cycle across multiple categories. they think they'll do well and also has strong international momentum. price target is 30. right now it's 25.83 a share. >> your second stock is goodyear tire. our earlier guest morgan stanley adam jonas upgrading this from an overweight to underweight. stock down 10% in a month. this kind of goes against conventional wisdom that autonomous cars will hurt the need for tires. it will increase because mileage driven jump to support pricing for the gdp. the target for the market is 52 bucks. >> third stock is nrg, upgrading the energy company to a buy from a neutral for a couple of reasons. one has to do with higher visibility once there's a legal settlement, a key one to clear up the outlook.

the analysts note there's been more cost cutting to help margins and boost the target from a buck from 2019. 25% upside from where it is right now at 16. >> i'll stay in and around the car. first tires now tools. final stock of the day always a smaller cap name is illinois tool work. another two-level upgrade. goldman sachs taking this from a sell to blow past neutral. sell to a buy. they raised the price to 155 a share from 131. boost estimates next year. when they downgraded the stock, he underappreciated the stock could improve. target is about 10% upside on the itw. >> because he missed a lot of run. he's catching up here. >> it was not a great call so now he's doubling down. >> got it. >> see what happens. >> becky? >> thank you. still ahead, an inside look at warren buffett's laguna beach house. he bought it back in 1971. wait until you hear how much they are asking for it today.

that's next. we'll be right back. these days families want to be connected 24/7.

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buffett. ♪ >> steps away from the pacific ocean in laguna beach, california, is the vacation home of billionaire investor warren buffett. the 3,600 square foot home has six bedrooms, seven 3600 squirex bedrooms, seven bathrooms. the mansion's some of personal's touches like the carve board put out you see in the living room. it's mary sea which burr cher hathaway owns. it's a bottle of coca-cola in his living room. the oracle of omaha purchased the home for $150,000 it's now listed for $11 million. not a bad return on investment. and his favorite channel on the t.v., cnbc. that house he bought in 1958 for

$31,000, so he got some real bargains. becky tell us, how much time did he spend here? credit don't they of him as a beach guy. >> no he's not. he said to us on a story we did before a picture of the family being there, they spent holidays there, he's been -- writing and doing things there. he never went to the beach i think he one one time. >> that house was driven by susie, his former wife. that's when he said she was -- behind that house. >> exactly. >> i can't picture warren. >> no not a beach guy. even that beach house is so simple, it's got simple counter tops, carpeting there, it still feels like omaha. >> the views are great. before you go there's a new report that shows millionaires are more afraid than ever.

>> this was a surprise especially given where the markets are right now. the economic index took its biggest fall in may dropping 17 points. that went from bullish to neutral. 47% of millionaires plan to avoid in the next couple months and the reason, turmoil in washington. george washington said quote, growing concern about the political -- of trump, the likelihood of tax reform and proposed federal budge are all to blame. the drop in millionaire confidence was led by republican millionaires, they had the biggest drop and the research was conducted between may 19th and may 23rd. that was after that big drop on the 17th. >> i bet they were the highest going into this -- >> they were. they were the most bullish and they fell the most. >> robert stick around. let's go deeper into the might say of millionaires and

billionaires. joining us bret anderson, this is your newest rob, report. you're getting into rest tradition hardware size here bret. first off, before we get into why, a general trend, which is interesting. i've gone a little more back to print because i wasn't looking and reading stuff as much on my ipad. is that a trend? >> well, interestingly enough i have a lot of an tech dotal evidence. we have a little over 100,000 readers and i hear again and again, mostly people who are running businesses, they spend their entire day on the screen and this is our disconnect. >> they want to feel it and flip the page. >> slup. they like the time to disconnect

from their commuter. >> so the advertising revenue is driven primary by print rather than online? >> it's both. the digit call revenue is something we're focusing on in terms of growth. for the luxury space and life style publications the print product is important. people like the glossy pages. that was one of the reasons we invested in the specks of the physical product with the june issue. larger trim size, thicker paper stock, the it makes the magazine itself an experience. >> what a work out. i have a question about the state of luxury itself and your readers and consumers. we had the burst of optimism after the election where we seem to have the release of animal spirits, the art market took off again, we saw a resir gans in cars, wine, collectibles.

it seem the mark took off, what do you think luxury looks like for rest of this year and maybe the rest of the trump administration? are people going to spend with that much confidence on that many very flashing expensive things? >> i think what we've seen since the recession, really and it hasn't changed that much although things have relaxed and the environment has relaxed. nobody wanted to buy a car because they didn't want to be seen driving a new car. i think people are focusing more on the quality versus quantity approaches and they wanted them to be meaningful. so they're being much more mindful about what they buy. can't be, oh i want to new car. >> so just one yacht instead of a fleet? >> exactly. i think expertmental luxury is a trend. people want to experience more. if they're going to travel they

want to connect with different culture. >> you published in chinese and russia? >> it's the same. >> contents are is same or translatored? >> national and local content trans late into russian. >> do you know ho you say giaya in russia? >> giant yacht. >> who's the desk graphic profile? >> $1.1 million household income is the average. >> income, that's not worth. >> that's not the net worth. it varies online, it's younger, 35, $365,000, i think we're will

be 47-48, 1.1 house hole. >> then women? >> predominantly men. lus usually the men of house prescribe. >> does the border adjustment tax worry you? >> i think it's always a concern. all of these -- >> they're all important. >> the decisions will affect anyone in some way. >> thank you. robert report good to have you. lulu lemon having a rough year. second hour of power starts in two minutes. you always pay

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liberty stands with you™ liberty mutual insurance. already hoarse what's on the menu for second hour of pour. president trump expected to speak at the white house in about an hour's time. he's expected to say they're pulling united states outside. many business leaders speaking out against that. plus will the so-called roomy boom hurt lew lew. the golden state warriors meeting up with the cavaliers in the mba finals kick off tonight.

we'll tell you what you the warriores are the darling. it starts right now. stocks are higher across the board. the naazdaq and s&p 500 already setting record today. the doe making a run. network reported at an expected better undering. it added new business j got existing business from customers as well. an earning in revenue and another retail wreck express in what the ceo describes as a damage. >> we are about an hour away from the president's announcement on his decision to get out of paris agreement on climate chang. it's expected he'll remove the u.s. from that agreement. eamon javers live at the warehouse. >> it's expected now with admit koe in the past few while that

admitted there are a number of paris folks invited to the white house to attend a the rose garden today. here's who would be disappointed if the president does that. this list of major companies that have said they want the united states to stay in the paris climate. shef ran, ex ron, microsoft, google. dupont, john and johnson. they also are joining a number of ceo z just within the past 24 hours who reached out to the white house and made their appeals known on national television including elon musk, who's been here at the white house the most. so far elon musk going as far as threatening to remove himself from some of those white house ceo counsels if the president does remove the united states

from the paris aconsidered. the white house officials saying the president east been talking to people on both sides, we've been clear about that, and we're expecting to do it. ultimately the president will make what he feels is the best decision for the american workers. michelle that's the frame they're looking at this through. this was a big campaign trail promise for the president and an opportunity for him to deliver for voters who voted for him and ask him to remove the united states. other news that's been out today, reports that president trump is going to roll back a lot of president obama's policies. a bottom's up review has been done, this began when he became president to look at what should be done related to what president obama done. no official offers have been put in front of him yet. i'm told don't expect the embassy to be closed but some

kind of rolling back or economic changes opponent of the united states were quite dramatic. when it comes to competition by the cue began government has been far less dramatic. the ointment guys is venue vela so if the roll out was going to be a speech in june in miami either with vice president pence or with president trump you can't go and make a speech about cuba when you have what is a true humanitarian crises in the region, venue vela raging at the time. the situation is he's going to have to address a big e region. venue as we venue as well la as turned -- in the meantime people around traveling to cuban. >> there isn't the ghademand th thought there was going to be. >> there hasn't been an big increase but to your point a lot

of degree that the american airlines have expected. >> venue as well la i believe use to be the or one of the richest countries, not only in latin america but in the southern hemisphere. >> yep. all right also happening right now, shareholders are held up at facebook with 27% jump in the stock over the past year it's likely it's a happy lot. julia is here to tell us about that. >> well, brian i'm here at the code conference right now and facebook has been a hot topic over the past couple days. yesterday afternoon secretary of state hillary clinton called out -- >> if i put myself in the position of running a platform like facebook, first of all they've got to get back to cue

rate it more effectively. put me out of the equation, they got to help prevent fake news from creating a new right lane that does influence how people think of themselves, see the world, the decisions that they make. >> now that issue of fake news on facebook is under scrutiny at neighbor's shareholder meeting is under way right now. facebook is being proposed to take more step to stop fake news and proposing the -- issue a report to quote -- society as the most and operational risks from potential public policy developments. facebook responding saying, giving everything it's already doing this preparation or kind of report isn't necessary. we've been working to address issues of false news for years. we're testing updates to news feeds where people can report stories.

we're working with independent fact study organizations along with other signals to send story to these organizes. ceo mark zuckerberg controls a majority of facebook shares so this can put pressure on facebook but uplikely to be approved. >> all right thank you julia. stock up 30% this year, where does the company and stock go from here? let's bring in anthony. >> thank for having me. vs. how much do you think about facebook news? general media is obsessed with it but when it comes to your analysis of the company and whether or not should be should own the stock does it play into it? >> it does. the way you asked the question is great. the way it cause people in their communication to go about reviewing posts. if that could be a substantial cost it could be an expense that

facebook has to incur in order to fight this problem. i love that they're acknowledging the problems, they've been through problems like this in the past so how significant is that in investment and save guarding -- >> can you give me context as to what degree youd be worried? do you have a number? >> the key for facebook is the revenue growth continues to be phenomenal. if this as tens of millions i think it's manageable and if that's possible it could be more, and if td add more expenses that'll be pressure up upward growth. >> are there second order consequences? when i hear them say their hiring people to cure rate that's called an editor right? that's being a media company in some way, are they open to other

regulatory issues as a result? >> you know, i just think i would take them -- they're hiring fact checkers, cur rating it, i think their reducing the financial obligation for people out there to spread hoaxes. i think you might be able to argue the fake news issue would in some ways had its peak at the election and preelection time period. >> high above evaluation, media companies are different -- >> i do agree it's a tough balance but devaluation is affected by us as analyst. that's the value of the company, i can't really see a scenario where there's going to be so much oversight that it's going to reduce the incentive for normal people, the average poster on facebook or instagram to mitigate their approach. i don't see censorship becoming

more of an issue than the hoax. let's get back to basics, what do we think the company's worth, what do we think the growth rate's going to be over the next three or five years in terms of earnings and cash flow. and where what's do we think of the landscape. >> thanks anthony. >> yeah thanks a lot. walmart executives are holding a meeting today in aurk saw. this comes ahead of the the shareholder meeting on friday. that stock price up over 14% since january 1st. some analyst are convinced warm has more room to run. let's bring in joe feldman. joe, what do you like that walmart's doing right now? >> i think the integration of the physical and digital that they've been doing. they've made a lot of strides on

the digital side, they've really,-on come together. that's helped to drive sales. their ecommerce sales are up significantly. and the traffic in the stores have been very good as well. >> in terms of what we're seeing in retail, there was a new report out -- this country going to close over the next five years. is walmart benefitting from that or doing well in spite of that? >> i think they're really doing well in spite of that. they're capturing some of that market share but at the same time it's probably a bit of a -- between amazon as some of these big engines that are going to drive the future. others are going to have to find ways to remain special like home depot or costco.

this whole effort is taking hold out of walmart and they're in position to do it. they got over -- in the u.s., to -- headed it right. but walmart has that and i think that's picking up some of that share in the market. >> courtney reagan just told us the company's going to have employees that are willing to drop off online orders that you place at people's home as early as that day on people's way home. is that good use of the capital? >> that last mile is what retail is trying to get at. for the last -- whether it's home depot, walmart or target, either of these guys should be trying to leverage to get the things to their customers. i think that's a smart idea, it's a great way to get that delivery to the customer, speed

that up and leverage the employees. >> joe, i want to move on quickly past walmart. walmart's already made a lot of money, based on the difference between the current price and the target price, your best idea its track record supplied. it's had a very tough run, you want to buy low though, is tractor supply your single best idea now? >> i think tractor supply is really well positioned. the market's changed a bit. we think weather has had a big impact. that should go well for tractor supply in the ksh quarter. we think they're going to rover their footing and we'll see upside to that stock down the road. >> joe, thank you for joining us. let's take a look at what's to come on the menu. the lulu lemon stock has been a

downward facing dog this year. tiger woods arrest. espn trouble, tipping off. we are waiting for the big announcement of trump today from the paris climb accord. more to come on "power lunch." ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next,o minimu? schwab has lowowed the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. bet they're callg about the schwab news. schwab. a modern approach to wealth management.

. welcome back. lulu lemon almost up 1%. the street is expecting of 28

cent on a heavy knew of $13.5 million. with the the athletic apparel maker make a come back. let's bring in anna andrey vas. you've got an overrate waiting on the stock. what makes you bullish on the stock? >> it's a little bit recommending lulu really for some time now. and what keeps us still bullish is really the way to survive in this retail carnage that we've had as of late, we think is the brand equity and not being overstored, we think lulu has both. we have a loyal consumer who keeps coming back to the brand. yes, they've misexecuted that past quarter but we think they can come back from that. >> what do you think about customer trends right now?

we were talking earlier about room my bottoms. is that consumers moving away from the the leggies crazy? >> athletic has been for the consumer really for some time. and i think you're starting to see consumer fatigue when it comes to black leggings per se in particular. we think it's going to be interesting to see whether lulu can innovate outside of yoga. we think that really will make them that -- sales brand that they've talked about. >> what other risks to this -- i say that just because the -- back in early march, just two months that stock was at $66, it's gone down dramatically. >> yeah the stock is 52 low at this stage, really not that low, but we think there could been interesting optionality of the

bored. you can have glen murphy who's a very well regarded form of gap ceo who's on the board. you have private equity involvement with advent as well. of course in terms of the risks as we mentioned, the space is getting crowded. traffic volatility is something that's affecting lulu as well. whether they can bounce back we'll see. >> earnings come after the closing bell tonight. >> all right thaeng for having me. stocks hovering a session high. by the way, if you missed it earlier if you're just waking up in guam or whatever, the dow hitting another all-time high today. incredible. apple's up 55% in the past 12 months. how important is packaging? we'll speak with one of the winners of the ink 500 design

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liberty stands with you™. liberty mutual insurance. welcome back everybody. market sitting at record low. in fact 83 new highs on the s&p

500 today. caterpillar, h and r, walmart sitting at a new high. for all the entrepreneurs out there this is important. how important is branding and packaging a product. more than you think. look at the label, no bs policy, listing all the ingredients on the label, in fact the label is the ingredients. change made a different for the company, and recently named one of the best designed products by the magazine. joining us is pete. thank you for joining us. i want to know how you came up with the idea. all of our viewers know most thing you buy you got to do this, it's a two-point font and you got to figure out what's in

the thing. the logo and label is the ingredients. you'd you come up with this? >> so, as you know the entry in the pbar market is low. >> there's a lot of competitives on the shelf. >> yes. here's or original design, and it's pretty standard. >> especially this one. >> pretty ugly. and so, me and my cofounder jarret smith we designed the package and -- >> designed the bad one. >> yes, yes. >> rare honesty by the way. >> yes. we knew we had to differentiate and we know what's lefted about the product and we had the products on the back. >> who had the idea and take that equation on the back on your self-admittedly ugly packaging and turn it into this.

that's the front of package. who came one is this this? >> it was a collaborative effort. our team and we hired an agency to bring this to life. >> talk about what it's men for you. we interviewed a lot of entrepreneurs and they always talking about the product, benefit, i wonder are they not thinking about the market. how much has this helped you? >> it's changed the game. the design itself -- >> but the product itself is the same. >> yeah. the combination of a great product -- the product's -- >> but if you had well, the same bar and this one -- what would the sales be? >> i don't know. >> a lot. >> yeah. >> this is dramatic. >> yeah absolutely. >> does it change your relationship? because a lot of our viewers have an item they want to get into walmart or cvs or whatever

it is, does it give you leverage with your retail partners? >> it's differentiation it's not the same -- >> can you quant fie how much sales have changed? >> 700 plus percent. >> wait, 700%? >> yeah. >> from the packaging? >> yes. >> peter i think that's going to be a harvard business case study at some point. >> yeah. >> the other question is will this negate the burger i just had. >> that's your "power lunch" tomorrow. >> this will be tomorrow. peter ray hall thank you so much. guys 700% sales jump. >> can you ask him if it's whole compliant? >> yes, it is. >> okay cool. it's a girl thing.

golden state warriors of the golden children silicon valley and it's not about how good they are at basketball. we'll explain. and the release of the video, tiger woods arrest. plus in half an hour, president trump expected to announce his decision on the agreement of the climate change. live. stay with us. ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn.

hi everybody i'm sue herrera, here's your cnbc update at this hour. explosions and gun shots heard at an entertainment resort in the pill piece yan capital of manilla. smoke seen pouring out of the building. we'll have more of that situation. former fbi director jaime comey will give testimony testimony before the senate intelligence committee on june 8th. nbc reporting on wednesday that he has been cleared to testify by robert mueller. brown vowing to continue to lead the effort to reduce carbon admissions despite president trump's claim on climate change.

>> president trump is flustering more activism to deal with climate change and he's doing that because his position is so ab sorted and against the facts that science tells us that it gives climate denial a bad name. >> president trump will announcements his decision in 30 minutes. that's the news update. back to you guys. >> sue thank you very much. folks we are 90 minutes away from the "closing bell" and stocks are moving higher. you got the nasdaq hitting record highs today. the dow getting close. moved above the closing high of 21,115. it's got to get to 21,169 to beat the day high. industrials and yew tilt are all at all time highs. healthcare at a multi year high. let's get over to jackie at the commodity desk.

>> crude oil popped today after a steeper draw down and inventories, 6.4 million barrels. the last minute it came back down to the flat line. that kind of draw that we saw is more in line with what you'd see seasonally. there was a draw down in gasoline and there's signs demand is picking up which are all supportive but i'd expect the reaction to be more bullish here and it wasn't. could we get over 50 here, we could, not impossible. they're not necessarily sure we go much higher from there. there's worries that the opec players won't be compliant for the next nine-month extension. trump's pending statements about the paris impact in oil as well. the feeling here is that we're stepping away from that agreement, it could be good for drillers and demand generally. back to you. the golden state warrior don't just represent silicon valley they're part of it.

steph curry is on the team with silicon valley. josh lip ton is live at oracle arena where the warriors and cavaliers will play game one of the mba finals tonight. >> well, admissibmichelle some warriors you're going to watch are not just future hall-of-famers they're tech investors. kevin due ran nefrgt in food mart. and steph curry founded a company that does mark software. >> the fact that steph comes in to our office space every once in a while or that we get to go to a game and talk to him afterwards is not something any other start up is able to do. >> now the warriors benefit by

having a direct loan to some of silicon valley's mideast well-respected entrepreneurs. joe lay cob who bought the team in 2010. youtube cofounder chad hurley. the warrior's dream on dream says that's what he looks to for investment device. >> one of my mentors on the investment side is amazing, he teaches me about so many deals. it's learning and all of a sudden you can kind of see trends and which companies are doing well, which companies aren't doing so well. >> game one starts tonight guys at 9:00 p.m. eastern. back to you. >> josh thank you very much. appreciate that. is it a good thing for the mba, the cavaliers and the warriors for the third straight year?

let's bring in george stein. george done a lot of thing including appearing on this show right now. yankees red sox, it's the same two teams again how do you read it? >> i read it for the celtic/lakers. great analogy between two franchises. >> is it really the warriors versus lebron? >> no, irving would have something to say about it. last year finals was the highest rate finals in the last 20 years. >> they've each taken one, so this is sort of the rubber match of all matches. >> no question. we all knespn's had some reward.

>> espn is going to be here for a long time. what are they going to do to take the chang in technology and the media. >> can we talk about tiger? >> sure. >> i don't want to call it a dui because it wasn't alcohol, driefl of something, what does this mean for endorsements? can he come back from that. >> of course. he's a great champion. he's a human being, human beings make mistakes. he's had a lot of tough luck, certainly we don't know the facts. he's had four back surgeries in three years, he's made a mistake. i don't think it will really hurt him. >> do you think he can come back with the game though? >> it's hard to say. if he had four back surgeries in three years. >> he needs other help though. i'm probably one of millions of

people that watched the arrest tape last night. the people who watched it know we're talking about, he was incoherent, didn't know who he was and you're thinking this is one of the greatest athletes of all time. george, he needs help. >> he does. and again he's a human being. it's challenging to see if he can overcome this. >> did you say in dem nick sponsors. what document? they're never going away. >> no some sponsors that are -- to golf clubs, they're -- >> and -- >> support the sport. >> quickly switching over to nascar, nascar struggled with ratings. this is a big expensive t.v. property. what does nascar need to do? >> they still have a meaningful

audience, they are off and they're going to have to recein venue themselves and continue to adapt. embrace technology and continue to -- it's difficult because if they stick with their hard core fans but they do have to reach millennials going forward. >> what changes would you make? >> new media and continue to reach fans in a more engaging way. >> george pleasure to have you on. >> good to be here. >> check card flag for the interview. s&p cutting illinois's debt rating more. you know rick santelli's got something to say about that, he's next. wind resorts are high today everything's fine. "trading nation's" next. but there's no business track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks

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♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪

wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com welcome back. this may be the biggest story that's not getting a lot of attention. today cutting illinois debt rating again. rick santelli at the cme. rick listen, my wife is from chicago, i love the city it's fantastic. it's a rolling train wreck, i

mean that from a financial perspective. this is the lowest credit rating ever for any state. what's going to happen here? >> your guess is as good as anybody else's brian but let's put more of a face on this. you're talking illinois, chicago itself is really no better. s&p have that one step above. this is 23rd month brian no budge. yesterday the spring session i think, which is why a lot of it is coming to the forefront but much has been expected. at the end of year that's when the fiscal year ends. runs from july till the end of june, 3rd fiscal year no budge. democrats led by mike mat again, speaker and they can't get anything done with the republican governor. i don't know how it's going to end but not only are we under

state ordered rules for how we pay or bills and what's going on, sounds kind of like puerto rico, but consider this, 14 to 14.5 billion in arrear wasn't only, it wasn't only the general obligation bonds appropriation that was cut to one level of junk as well. >> and you know -- i'm not going to blame either because the problem started decades ago so it's politician after politician. the worst part is this you know something they aren't going to say and they already said it. we need to tax the rich more. here's the problem, people are fleeing chicago more. 66,000 people left cook county between 2015 and 2016 of chicago. that's most people leaving one county in the united states. thai going to run out of people left the tax. >> three weeks ago i did a story

about how the chicago teacher's pension fund is having problems. no matter which way you look you find a problem. if they come to an agreement immediately it's going to take a while. we're 250 basis points wide -- so yes, i don't know if there's an easy way out but the federal government should take notice. this is a stencil that will go federal if they don't start to look at illinois and chicago and learn a lesson. >> everything you said repeat it back from the grief financial sources. >> that can gets kicked down the road, down michigan avenue. >> already somebody else's munch. >> rick, thank you very much. i have a feeling that story's not over. in the meantime in happier news casino stocks are jumping. let's talk about this, craig johnson and jeff.

craig minneapolis is around the city so we're glad to have you on the program. these names getting a big pop, okay it's nice. are these buy bl stocks for our audience? >> i think they are. and really way i think about the entire consumer space right now is you've got the product and the experiences. the casinos fit into that experience area. chart still looks good. a lot of names whether it's las vegas or wynn, still looks good. the year up 50% and change year up today. i'd still be buying these names at this point. brian. >> okay. he's buying them. are you? >> yeah. i like them. the fact it's been a bump in refr news but the fact they had an increase called mice, the meeting and budget issues.

i think that's a very very strong story there. >> okay. is there you go. short and sweet. these names are loved both ways. boris and craig thank you very much. for more go to tradingnation.cncb.com on your internet explore or net escape browser. michelle. the dow, is it going to set a new record high? yep, 2,169 is the number to watch. you can also set a new closing high as well. donald trump, is he going to pull the u.s. out of paris climate accord? headlines crossing right now. on the other side of the break, "power lunch" will be right back. i was wondering if an electric toothbrush really cleans...

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breaking news as we show you the white house rose garden,

there you see wilbur ross surgical of commerce. president expected to anoun his decision 3:00 p.m. eastern time. happening right now recording h the pack and seek a better deal. the nation's biggest ceos like hp, and enterprise urging the president not to withdraw. >> please, do not withdraw from the paris climate accord. this is not in the best interest of americans. we are -- we need to own the next generation of jobs, and whether that's clean energy or 3d prints, this is an area america must lead, and i think this is a big mistake withdrawing from the climate accord. >> she's not alone. others appeals is tesla, should we stay in the accord or leave? joining us is the center for

american progress, managing director of the white house counsel on environmental quality under president obama and david from the heritage foundation part of president trump's transition team working under epa minister. let me start with you. looks like the president is going to withdraw. i assume you think that's a good thing, too, why do you think so many ceos don't want him to withdraw when many believe it makes us uncompetitive. >> look, withdrawing from the paris climate agreement is a win for energy consumers, wind creators, and american families. obviously, when you have turning out billions of dollars of subsidies to mandates for others, there's some people that want to stay in an agreement that's going to keep that gravy train going, but for the economy overall, it's a bad deal to be in the climate group as it would be for the others.

>> what do you say? the threat so great, throw as much money at this as possible in. >> i don't know what david's referring to talking about throwing out money to different groups as if the companies that are stepping forward are getting a kickback. this is a nonbinding target that developed looking across our energy sector and seeing where we were going as a nation, recognizing climate change is happening now, costing us money across the country now, so this idea that somehow this is a huge burden on the taxpayers doesn't really stack up when you look at what the paris agreement is. this is the entire world coming together saying, we're going to do our part, what's right for our country in terms of addressing this global problem. >> the crux of the issue comes down to, okay, it's very costly and people are not convinced that the accord actually achi e achieves very much considering the cost. >> well, that's -- i -- you

know, i don't think that that's correct. analysis does not achieve much or a feel-good kind of thing, but this cost worth the change you get? >> first step that brought together 195 countries. the only countries that are not a party to the agreement are syria and nick raw grau so now the united states stands with them. this was a major step in coming together to say, let's do what we can. let's provide transparency to the problem, see how we can move forward, and in the coming years, we can then be more ambitio ambitious. >> dave, looking at the agreement, doesn't look like china or india cut emissions at all, but just increase them as percentage of gdp and it depose up. >> exactly right. that's why china is on it pretending to be a leader. they said they're going to peak

in 2030. they grow, and we cut ours. >> that's not -- >> let's be honest -- >> no. >> this is not a climate agreement. we know that a because it doesn't do anything to moderate temperatures, nothing significant. if you ask all the other signatures, 2030 target, a huge if, if they carry the targets to 2100, the moderation in warmer is less than two tenths of a degree. what it is about is money. we know that because that's what they've said. the president of the general assembly, the u.n. general assembly when asked about the senator, what does it take to get people to sign on? he had a one-word answer, money. the chief of the climate organization for the u.n., she said, the task before us is to remake the economic development model. >> we can see steven mnuchin in the rose garden. u.s. reduces emissions.

yu europe reduces emissions. china and india increase their emissions, correct? maybe not as much as a you thought they would do before, but the emissions go up and ours go down, correct? >> so the whole premise of the paris agreement -- >> is that correct, though? >> every country does what they could at this time to make progress for achieving a goal. that was the whole premise of this agreement. >> but i'm correct, right? >> you are correct. >> okay, thank you. >> by 2030, china hopes to have 20% of their entire electricity mix renewables. that's 800,000 to 100,000 gig watts. >> how much is coal? >> no. that's renewables. >> right. how much is coal? >> no, i'm talking about what they are growing in the renewables. >> uh-huh, right. okay. thank you so much. waiting to see what happens at 3:00 with president trump. in the meantime, we are watching stocks with an hour to

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>> welcome back to "power lunch," minutes away from pump announcing the decision on the paris climate deal, and cnbc now confirms that president trump does plan to pull out of the

deal. we got a copy of the white house talking points in which president trump says america does not need a bad deal that will harm workers. among the points, the president plans to make, plans to say that the u.s. economy will lose nearly $3 trillion over the next several decades if it continues to comply with the terms of the agreement. the president also says that by 2040 the economy would lose 6.5 million jobs in industrial sectors if we continue to participate in the paris climate agreement. they are also going to say the u.s. is already seeing energy and oil and gas leader. that they should continue to reduce emissions without participating in the paris accord. back to you guys. >> yeah. ylan, as you talk, we watch the live picture of the rose garden, focused on steve, and they made the talking points, if you believe in climate change and you are worried about it,

there's little evidence this accord actually does a lot about it, so you weigh all the costs, is it worth it? >> talking about $3 billion green planet fund. only to this date, paid a billion in, two billion to be paid in. president obama transferred money before leaving office. >> thank you. >> thank you for watching and "closing bell" starts right now. ♪ welcome to the closing bell at the new york stock exchange. welcome back. >> thank you very much. nice to be back. picking up coverage with breaking news. the president about to announce the decision on the paris climate accord. we are live at the white house rose garden there. as soon as it's underway, we pretty much now what he's going to say. that's leaked at this point. let's get to eamon at the white house for more, what the president is expected to say. >> reporter: bill, i can tell you it's warm and crowded here