can get involved go to traders for a cause.org. raising money to fight als. >> that's right and cancer. thanks, nate and scott are here in the studio. >> final trade, joe. >> microsoft. >> cisco systems. >> nvidia. >> we did it in 30 seconds. here's what's on the "power lunch" menu. congress is talking about slashing tax deductions for retirement plans. president trump says no way. there won't be any changes. the fight for your money straight ahead. the s&p closing at a record high every day last week. that hasn't happened in 20 years. will we get a repeat this week and the one thing that could make it happen plus o'reilly is back in the spip zone. the host paying more than $32 million to settle a single harassment claim this just before he signed his last

blockbuster contract. the fallout for fox and much more as "power lunch" starts right now. happy monday. stocks trying to build on what build the perfect week last week and it's looking good. more record highs today. we pulled back just a bit. earlier another record day and check out some of the movers. investors aren't playing around with hasboro's week guidance. the biggest loser in the s&p 500 right now but van's and vf corp going the other way. they raised their four year forecast. also boosting their dividend by 10%. >> i'm melissa lee we begin this hour with new comments from president trump. eamon javers is live with the latest. >> reporter: the president's with the prime minister of singapore today. they've had a number of events already. some more on the schedule later on throughout the afternoon. just within the past couple of

minutes we saw the president sitting down there, you see the prime minister there in the oval office with the president. we also saw them signing a deal for singapore airlines to purchase a large number of boeing aircrafts. the president was also asked briefly, there you see some pictures of the signing ceremony they just held here at the white house as well. a big opportunity here for boeing and we also heard the president ask by reporters where he stands on the fed chair decision. he says he is very, very close for those of you following along at home. that's two veries from the president about how close he is to make that decision but no indication of what that decision will be or where the president will land on the number of candidates that he's had out there. at least five candidates we believe are still in the running here including janet yellen who the president says he likes very much but it's not clear when necessarily the president's going to make that decision. he's saying he's very, very

close is about as specific we got it. >> just one very. >> just one very on yellen, but very very close. a big battle brewing over your retirement savings. elon >> republicans are really in a bind right now because they want to go big on tax cuts but they want to find a way to pay for at least part of that. one idea republicans have been considering is lower the limit of how much workers can contribute to 401(k)s. you still have to pay that tax when you withdraw the money but you get to put the money in tax-free. right now the limit on those contributions is $18,000. a source on capitol hill told me that republicans are thinking about reducing that to just $2,400 and that would allow them to shift all that deferred tax

money from the future into the present. president trump however did put the ca bash on that this morning. he put out this tweet. there will be no change to your 401(k). so not a lot of wiggle room for republicans there. right now 401(k) balances are at a record high thanks to the rally in the markets. the average amount that workers have socked away is nearly $98,000 but even that may not be enough to get them through the golden years. our savings coalition which includes everyone from the aarp, they said, quote, president trump made clear just how much retirement savings matter to families across the country. they also pledge to keep fighting to preserve and expand the retirement system so, guys, this is the fundamental dilemmaa in tax reform. everyone wants tax cuts but nobody wants to pay for them. back over to you. >> and they never talk about cutting spending for some reason. we already have a savings problem in this country so what would happen if the keen snefl

were taking away. bob pisani. >> it would be bad news, very bad news because americans don't save enough for their retirement as it is and personal saving like a 401(k) are a critical part of the whole retirement process. according to van guard, 94 million americans are covered by these defying contribution accounts, those are 401(k). assets are in excess of $7 trillion. that sounds like a lot of money but when you really drill down there's not a lot in the accounts. the median value, half had more, half had less. someone whose over 65 it's only $60,000. let's assume at 65 you're going to live another 20 years to 85 years old, $60,000. do the math it's not much to live on spread out over 20 years. your social security and a pension, they're increasingly under pressure, we know that so

personal savings are going to be critical going forward. surprisingly, many people don't put away the maximum amount they could save each year. 18,000 or 24,000 or if you're over 50. only 12% of 401(k) participants contribute the maximum amount allowed by the irs guide lines. we should increase the deductability because if we don't a lot of people are going to work into their '80s or they're going to outlive their money, one way or the other. back to you. >> no criticism i think you just contracted yourself. if only 12% put the max now, it wouldn't effect schls people. what are they going to care if the deduction is cut. >> they're still putting a lot away. the small percentage of people are putting as much as they possibly can. i'm in favor of increasing the maximum of savings anybody they.

the entire country is ill prepared for any kind of retirement at all. a lot of people are not going to have enough money to live on, that's a major source of social problems. i'm in favor of letting anybody deduct more than they can if people are super savers, they can put that more away and they tend to be people who make more money. i'm in favor of that. >> thank you, bob. >> i think a lot of people would still save, you pay taxes on that money. that's the whole idea. >> i wouldn't save as much. i would cut back if they cut the limit. >> but you'd put money elsewhere. >> exactly. >> for a lot of people that they might not put money elsewhere also. >> most people work for themselves so the way you save -- we work for a major corporation that kicks it in. most people don't. they don't have access to a 401(k), so it's a small part of the investing world any way. >> for more on this let's bring

in seth harris. chris edwards director of tax policies studies for the cato institute. seth, i'll kick it off with you. bobbitt outlines so aptly the deficit people will face how much they save, they'll run out of money when they actually retire. what happens if we touch this 401(k) people actually save less you think. this crisis worsens? >> yeah, there's no question that if you lower the tax deductability of 401(k) contributions to $2,400 from $18,000 people are going to save less. we understand that in the business world that if there are kinds of behavior that we want businesses to engage in, we either reduce or eliminate the taxation of those activities. the big discussion now in washington, for example, is about expenses. we want businesses to invest in business. it's the same thing with individual families. if they're making a choice about where to put their money whether to spend it now or maybe put it into some other kind of

investment, we want them to put it into their retirement savings because the overwhelming majority of americans do not have enough money to sustain their lifestyle in retirement right now. only fewer than a quarter of the people in the baby boom generation, which is the generation that's retiring right now, feel that they're going to have enough money to support them for the rest of their lives. we need to increase savings and increase the tax protection of savings so that those folks can stay in the middle class once they're in retirement. >> should there be things done, chris to incentivize people further to put more money into their 401(k) is tax reform the opportunity that the country could have to actually incentivize people to save more? >> yeah, absolutely. i think the move here by republicans is really politically dumb. 401(k) are a central part of financial security for tens of millions of americans as we've heard. so they're signaling here to americans that tax reform could

be a danger to them which is really politically dumb. there's no economic advantage to reducing 401(k), putting these limits on. i think instead we ought to take roth iras and expand them and super charge them into things called universal savings account. this is what britain and canada have done. they've put these accounts in place where you put an aftertax money and the money can be used for saving for any purposes. half of all british and canadian families have these accounts now. they really are the way to go. they would expand saving opportunity rather than cutting back. >> after tax money but the gains on the account are tax-free? >> absolutely. it's aftertax money and you can pull out at any time for any reason. it increases the liquidity here and encourages people to save more because they always have access to their money if they want it and you can use the savings for anything. rainy days, health care, it's for education, anything you

want. these accounts really are a proven success in other countries. >> seth, only 12% of individuals actually put the maximum in which right now stands at $18,000, i bet the reason is they don't make that much money and they can't meet that number. that's why they're not hitting the maximum. i look at this and i see the cut back to $2,400 and this is just a veiled tax on the rich, seth >> i think that's a very generous interpretation. it's a tax on retirement savers. still the large majority of americans who are participating in 401(k)s are contributing more than $2,400 a year. so they are going to get hit. they may not get hit as much as those who contribute $18,000 a year but they're going to suffer pretty badly and even that 18,000 figure is not enough. remember -- >> what percentage are contributing more than $2,400? >> it's above three quarters that are contributing more than

$2,400. >> what's the average? >> in a given year -- not everybody's doing it every year. your main point is a very important one, which is that real wages in the united states have been stagnant or declining for decades. they're beginning to pick up now because we have very tight labor markets but your right that workers have to make a choice. when that paycheck shows up in their mailbox or in their direct deposit account at the bank, they have to make a choice about how they're going to spend that money. if you create a tax disincentive to retirement savings, they'll choose to put that money elsewhere. we want them to put that money in retirement because eventually there is going to be such an immense demand for government to intervene, to fill in this gigantic gap that most families experience between their social security benefits that they get and retirement and the amount they need to live on to sustain their lifestyles, that there's just going to be an immense demand for government to intervene in some way and that's going to be very expensively and

we can solve it through the private sector right now. >> gentlemen, thanks for your time. >> thank you. >> thanks. the biggest ipo in the world is coming up next. we'll hear from saudi prince on one oil price he thinks for the sweet spot, plus new sexual harassment allegations around bill o'reilly. "power lunch" will be right back. clarif so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's can... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! "we got a yes!" start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open.

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welcome back. telling him that the world's ipo is on track for the second half of the year. saudi prince also weighed in on both the ramco offering and the sweet spot for oil prices in this market. >> all of them have an interest and a big corporation when vicinity and the arena of opec and finally speaking, having price stabilize on 50 to 60 which is where it's hovering around right now, it is good for the consumers.

remember also, shared oil production also depends also on where the price -- clearly, the less opportunity for -- the prince also floated the idea, saudi arabia could list more than 5% of the state oil giant in the coming years and defended his nation's rumored talks with china about taking a state in saudi aramco. >> do you think or do you know that the ceo said that the chinese are not or at least he's not talking to the chinese. is it possible that the chinese could be talking to the government >> well, you know, i'm not member of the government but i read these records and i will not be surprised if china will be looking at this opportunity because china depends on oil and we depend on oil for long time to come and saudi arabia is an anchor exporter of oil to china. so if this thing happens it should be very much welcome and i heard discussion in the western media that if china comes and buy x percent of saudi

aramco, this may hinder and delay the projected ipo of aramco. this is not the case. they can have an anchor investor before the ipo. actually, if chinese come or that other investor come and invest in aramco, that should confirm and expedite the process of having aramco go public. the owners of aramco which is saudi government is seeking. >> the prince saying a lot there. why don't we break down some of these comments. mike, the prince, you got to have a quick brain. his brain goes like this and he talks just as fast. it looked like there was some support for the ipo obviously which means do you think there is support for the price of oil? does the aramco ipo kind of sort of put a floor on oil prices.

>> caller: thanks for having me on. i watch that whole interview this morning. it was great. wealth of knowledge. you got to move fast. i think what he's saying the ipo is definitely the route that saudi wants to go. they've come to the realization that 20 years from now banking on oil growth, a million barrels, year after year after year, million barrel growth is just not the way it's going to play out. and they are highly incentivize to take in 75 to $100 billion in cash through this process, just a 5% sale to diversify and they're going to do whatever it takes to keep oil close to $50 a barrel which is probably the sweet spot to get this done. really to make that happen. so, yeah. i totally think that they're going to try to stabilize the market. the last thing they're going to do is flood the market with crude and have the price tank to the 30s again.

>> it's interesting because oil can seem like such a mysterious thing but it's so simple. supply and demand. last week on friday we spoke with john arnold in houston and he basically said that autonomous vehicles are going to reduce the amount of need and demand for petroleum products. sounds like ali said the same thing. so if production stays the same or goes up and demand goes down, where's the most likely path for pricing? >> yeah. we're the biggest bears on the street right now. we got a long-term price outlook of $40 for wti, the street's at 60 out in 2020. we see that coming in demand. more importantly it was crazy, brian. a few years ago to think that you could drill in shale anything under $100 a barrel. now we know guys are making a killing sub-50. you got demand.

>> we are going to live it there. thank you. >> thank you. the sexual harassment scandals in the news and in hollywood continuing to develop. new details emerging over the weekend of a huge settlement paid by bill o'reilly. we got all the details coming up on "power lunch." with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. 'saved money on motorcycle insurance with geico. goin' up the country. later, gary' i have a motorcycle!

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new details emerging over the weekend on sexual harassment claims involving bill o'reilly including a $32 million

settlement. julia boorstin joins us with the latest. >> reporter: bill o'reilly personally paid $32 million to fox news legal analyst lees wheel and this is the sixth settlement o'reilly has made over accusations or verbal abuse. settlements totaling about $45 million. now fox says that while it was negotiating a $25 million annual contract with o'reilly, it was aware that there was a claim and a settlement but that it was not aware of the financial terms, saying quote his new contract added protections for the company specifically aimed at harassment including that mr. o'reilly could be dismissed if the company was made aware of other allegations or if additional relevant information was obtained in a company investigation. they dismissed him. o'reilly's attorney saying quote, in this latest die atribe

against bill o'reilly, the times printed leaked information that is out of context. false and defamatory and obviously designed to embarrass o'reilly and to keep him from competing in the marketplace. "the l.a. times" reporting dozens of allegations against james toe back. the flood gates on these issues seem to be opening. >> some people might wonder why fox would even go down the road signing a contract. that was a very crucial time for the primetime lineup. megyn kelly decided to come to be nbc. >> bill o'reilly for years drew very high ratings and was certainly very valuable to fox and for fox, they say that they didn't know how much this payout was. when you look at that number, though, $32 million you have to wonder that if they did know how

much the payout was, they might have been behaved differently. we will speak to that "the new york times" reporter behind this latest bill o'reilly story. >> president trump saying there is no change, at least according to him to 401(k)s and tax deductibility so what will tax reform look like plus the markets keep pushing higher. the dow could be up for the seventh day in the row. taking out more records. can anything slow down this record rally "power lunch" will be right back.

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i'm contessa brewer. secretary of state rex tillerson is making a second unannounced visit to overseas this time to iraq. he reiterated the u.s. commitment. he's been on these trips. the wildfires in northern italy are raging on with 50 people evacuated today, firefighters are working to prevent the flames from closing in on homes.

authorities blame months of drought. it's been a real problem for spain and portugal too. a development in the massive volkswagen emissions recall. u.s. and california regulators approved a fix for about 38,000 of the automakers diesel suvs. that decision could save volkswagen more than $1 billion dollar. the fda has approved a second shingles vaccine. a treatment manufactured by glass cosmith kline. it gives stronger protection against the painful condition which is a delayed complication from chicken pox. back to you. >> thank you. let's get a check on the markets right now and after setting record highs once again earlier in the session we have backed off. the dow's managing to hold on to a 13 point gain. as for individual movers, general electric continues to be take drag here. shares are down 6% right now and that percentage drop, the largest for ge stocks since

august 2011. that's also helping shares of western digital too and dbv technologies losing half its value today. aimmune they area stocks are soaring. president trump is expected to give a joint statement with the prime minister of singapore. we will monitor that and bring you any news making developments. we don't expect them to take any questions. meantime, if earnings still matter to this incredible stock market run then this week really matters. 12 dow components and a third of the s&p 500 are going to report their numbers. expectations are high. david kelly chief global strategist and jason valen court, joining us now. david, basically, i want to ask you this. do earnings still matter at all? >> oh, yes they do. earnings matter and they matter

more in the long run than the short run because valuations matter more. so there's a lot of momentum in this market. the earnings look good. it looks to be about 8.5% year over year gains in operating earning for the third quarter were being helped by a lower dollar, and helped by higher oil. this is a bit of an indian summer. i think by the second half of next year whether we get fiscal stimulus or not, i think we'll see a slow down in earnings growth because of strong wage growth, stronger higher interest rates. i think investors should enjoy it while it lasts but recognize that we're coming towards the tail end of these really good numbers. >> i need your help, david. if the market discounts future expectations and you expect earnings to slow down, earnings growth to slow down, why are stocks still going up? >> if this is a 30th anniversary of the 87 stock market crash, that was the day that got rid of any inkling that i ever had that

market's are rational. there's a lot of money that needs to be invested. people do feel good about the economy and earnings. who with wants to sell in front of possibly lowering income tax or capital gains tax rate next year and rates are so low that where you going to go? these technical factors are helping the market move further than fundamentals suggest it should go. >> jason, at the same time it sounds like you're fairly bullish but you do prefer japan and i'm wondering if abe's victory make you more bullish or that was part of the premise of you preferring japan over the u.s. >> it was part of the premise. he was wildly expected to win and this new party, party of new hope, fizzled out before it even got off the ground. the two prongs that supporting the japanese equity story are one, i think a lot of the abe's economics are underappreciated a couple years ago if you look at corporate and cfo behavior. things like buybacks, tremendous

earnings growth this year in japan have all flown under the radar a little bit and the second piece of that is if you look at the breadth of the economic expansion it's pretty broad based. em trade is growing quite strongly. those are things that benefit japan which is a big export economy and supported by a relatively week yen so -- if you monitor the number of countries both in developed markets and emerging markets that have their pmi above 50, you really have to see that the kind of breadth in percentage terms that we're seeing now. you have to go all the way back to when david and i worked together in '06 and '07. that gives you the sense of the magnitude of the breadth in the global recovery. >> david, you didn't sound all that bullish. i get what you're saying, technical reasons, nobody wants to not be in there if indeed a tax cut happens but at the same time you think that you mentioned the indian summer and long in the tooth here so what

does that mean in terms of being invested >> you need to be more caution and you need to make sure you don't invest in the most exuber rant sectors. there's opportunities outside the united states in general >> what are the most exuberant sectors? >> and there are obviously some individual technology stocks where it's hard to see how you could ever generate the cash flow to justify the price. those -- the things that people believe in of pure faith as opposed to actual earnings growth, that's where i worry. there's plenty of opportunity. you just have to be more -- you can't just, you know, go with the big indices here and go all in on an s&p 500 index here. at least i don't think you should because that is getting more expensive. >> thank you. saudi billionaire giving president trump credit for lifting the stock market since

election day. >> well, look, trump is a unique president. president trump has his own way of governing. i know. some people don't absorb this issue of governing through a tweet. you have to be accepting that. afterall president trump was elected by the people of the united states. so we have to respect and accept that and trump speaking policy are pretty good and not to quote president trump personally, he's right. $5.3 trillion of wealth is being created in stock market in america. clearly this was created because there's a lot of activity that health care would be finalized and the tax reform more importantly would be finalized by trump. >> president trump's agenda may be getting side tracked again. there will be no change to foib. his fweet throwing cold water on any plan on republicans to cap

contributions on 401(k)s. roadblocks almost everywhere in the tax reform plan. what can actually get done. joining us are trent duffy and christian weller. the other thing that keeps coming up is a fourth tax bracket for the ultra wealthy. what we see here is they need to make the numbers work, nobody seems to talk about cutting spending so they're looking at tax breaks they can get rid of or taxes they can raise. is this ever going to get done, trent? >> i don't know. like you said the obstacles keep getting higher and higher and higher. this is where the going gets tough and the tough get going. i think we're going to see some negotiations on the salt provision before house republicans go for that. let's remember what happened to the border judgmeadjustment tax and you have the national realty

torz today talking about the mortgage interest deduction. they have just as much as political power as the retailers. i think you're absolutely right. there's a really hard track ahead for house and senate republicans forget about the close margins in the senate but getting these tough pay force thrus is very beneficial. >> we're talking generally in terms of the estimates well over $2.5 trillion in terms of deficit just from the rate cuts on the personal side as well as on the corporate tax side. the overall improved deficit is $1.5 trillion. you need to find an extra trillion dollars some where in that supposedly comes from closing unspecified loopholes. as trent just pointed out, every single loophole is somebody else's favorite tax break and it brings out the lobbyists and it'll set off a fight.

in the end we'll see a reduction in rates both on the top income earners as well as on the tax side. >> you don't believe in the fourth tax bracket getting through? >> it depends -- we don't know exactly where these brackets will fall that are in unified framework, so we don't exactly know who's going to get what kind of tax cut. we do know they fall heavily on the top and they fall heavily on the corporations. the corporate tax cut may not fall to 20 or 25%, maybe only fall to 30%, for instance. what we lose here is sight of what this will actually do. we're ending up with a net increase in the deficit of $1.5 trillion and we got nothing to show for. we have massive problems in the economy. we acknowledge investment is too low, wage growth is too low and we have the aging of the baby boomers and at the same time we have congress and the white house squandering $1.5 trillion. >> why do they never talk about cutting spending >> they are but right now the focus is on getting a tax plan

through the congress. there is some unity of purpose especially given the health care demise that's not over yet. but just the fact that the senate was able to pass the budget resolution is a very good sign that there can be unitill and purpose going forward. what you're seeing is they want to get the economy booming so the revenues will come in and help pay for some of this but it's difficult to get the numbers the way they need to be. >> i think that's a lot of wishful thinking. you're looking at a $1.5 trillion net deficit here, the evidence for past tax cuts along the lines of this proposed cut show that we didn't see an acceleration of economic growth. i think in the end we have $5 trillion tax cuts as we're staring major issues in the economy in the face and large among them are slow productivity growth and the baby boomers. cutting taxes for corporations that are already sitting on $2.2 trillion in cash is not the

way to doing this. >> wouldn't that grow the economy, trent >> absolutely. the economy balanced the budget, both bill clinton and republicans wanted to take credit for it but it was the economy that was powering the revenues falling into washington. nobody saw it coming. it was completely unexpected but it was the economy that actually balanced the budget. that's why you see a focus to try to get the economy back up to the levels we saul in the 3 1/2, i know democrats like to say that's never attainable but, in fact, it can be if we put a good structural reform in place that rewards investment and savings and does the kinds of things that we need to do in the economy. >> growth would solve a lot of time. thank you. >> we're not talking reform, just talking cuts. >> if the numbers go low enough, it becomes reform. we'll have you back to discuss that. thank you. >> thank you. news alert. what we're watching now are shares of under armour, this is according to the "the wall street journal" citing sources,

saying the cofounder of the company, kip fultz has taken a sabbatical and looking at exploring the exit of their tennis aenl outdoor categories. this is source reporting from the "the wall street journal." if you take a look at what happened with under armour, he was seen as one of the probably the second in command next to what's happening overall with the company and of course kevin plank but more importantly here the idea that perhaps this is a company going through a transition right now. mr. fultz they do note most recently held the title of strategic adviser and his leave started earlier this month. something to keep an eye on. this is a stock that's down 40%. >> big story, dom. and a stock that has had a lot of trouble. >> let's get into the bond mark. rick santelli as always.

sorry about your cubbies, buddy. >> it just wasn't meant to be. maybe something that's not meant to be is mario draghy this hurs maybe he won't do enough because i'll tell you what, all the markets are at extremes. look at year-to-date of tens. it's on the verge of popping through that 240 area. we settled at 244. year-to-date dollar yen, strength and favor of the dollar, 114, huge. year-to-date euro versus yen. in favor of the euro against the yen. pound versus yen. these are all year-to-date charts. we all know about trade. we all know that mr. abe put back in office for another term and is certainly going to keep mr. ca rota and that is probably easy money. so everything's benched marked against the yen. we're not sure about mario

draggy. we'll pay very close attention. >> thank you. outspoken vladimir putin critic will join us. a new group of stocks is leading et market higher. "power lunch" returns. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of

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there was a downgrade, there was an upgrade and it cut to neutral. no one knows. >> you can see it as very deep value or you can say no why there's a lot of unknowns ahead. so i can see it both ways. >> wall street is all over the way. second stock micron. boost their target to 50 from 42. they also raise estimates, memory prices have started to rise. i think that micron is narrowing the margin gap with samsung. balance sheet is no longer dictating business decisions in the case for a long time. that $50 target implies about 19% upside. ubs last week raised their target on mu to 53 from 39.50. >> sticking with chips here. nvidia, jeffrey's raising the price stock to 230. that's a nearly 18% upside from current prices. the analyst believes the company's graphic card will keep it ahead of competition. we'll create some upside to the next 18 to 24 months.

>> your final stock is mule mule is the ticker. san francisco base software company doing stuff like infrastructure and cloud computing. stocks down 8%. the upgraded to a buy and they boost target from 29 to 24. this is not just a stock is down, buy it call. there's a real change happening with cloud competing architecture that will help mule soft. the valuation still looks pricey to some, they expect the company will post several somewhat better than consensus quarters so that valuation is reasonable. they're target implies 20% gain on mule soft. >> pretty good pop today. coming up outspoken vladimir putin critic bill broward will join us. tesla striking a deal in cnahi and the stock that's next on "power lunch."

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hedge fund manager bill browder, a prominent critic of vladimir putin pushed for u.s. sanctions against russia is now being banned from entering the u.s. this comes after russia succeeded in placing him on an interpol wanted list after four previous tries you may recall browder's tax lawyer in russia, sergei

magnitsky was taken in on what browder says on false charges and then he died in prison in 2008 the act has been in the news recently after it emerged that a russian lawyer who supported lifting those sanctions met with donald trump jr., jared kushner and other campaign officials in the summer of 2016 joining us on the cnbc news line is bill browder. mr. browder, thanks for calling in. >> thank you. >> what happened >> well, basically in the last week we got the magnitsky act of canada passed. canada copied the u.s., put in place a canadian mag nnitsky act putin hates the magnitsky act. and as these external sanctions start to gather momentum, he feels more and more helpless -- >> and how is that connected to you losing your visa >> well, i was the main advocate

for the canadian magnitsky act and the u.s. magnitsky act so vladimir putin put me on the interpol most wanted list. he's been trying to do this for many years he's been rejected by interpol four times, but he succeeded at least temporarily getting me on the list last week and strangely the u.s. visa system seems to be tied up with the russian interpol list because my visa going into america was immediately canceled so i've got two problems one an interpol arrest warrant, and two, i can't travel to america right now. >> so i'm assuming your understanding is it'snot the state department does not want you to travel here, it's just that the bureaucratic process, she tried to say, is that when you end up on the interpol list you will be denied a u.s. visa and this situation has to be cleared up in some way. >> that's what i think is happening. now, we will find out more, but based on the reaction of the department of homeland security and the u.s. government, surely

if they quickly correct this then that will show it's a bureaucratic problem if all of a sudden it lingers or hangs on or they get defensive, then obviously there's something more sinister afoot. >> does that mean you're at risk of being arrested in the uk? >> no. the british government has fully protected me from any of these russian abuses, processes. >> so you're safe right now? >> i'm safe unless a russian assassin shows up, and that's not impossible the russians have made death threats to me, but i'm not at risk of being arrested in the uk that won't happen. >> would it be fair to assume that even if interpol would not care, that you would likely not leave the uk right now, would you go to france would you go to switzerland? would you go to spain? >> absolutely not. i cross any international border i will be arrested the guys at the border haven't read my book or don't know the magnitsky story. all they see is an arrest

warrant and they'll arrest me and i'll be sitting in a prison fighting extradition while russia tries to get me back to russia. >> bill, anybody who's listening thinks you sound american. because you used to be please explain, you're not a u.s. citizen anymore hence why you need the u.s. visa. >> a bit confusing yes. i migrated to the united kingdom three years ago. i'm a british citizen, never lost my accent but this is where i've been living most of my life but i do travel to america and it is useful to go there, particularly for my campaign for magnitsky sanctions because i'm still working on it and working on implementing it with many people in washington. >> so you've reached out -- explain something else to me uk citizens generally don't need a visa to get on a plane to come to the united states why is this a process at all >> that's actually technically not true for uk citizens we need either a visa or something called an esta, sort of a visa light and so i had an esta and it was canceled

and so you need one of the two things in order to travel to america. >> so what happens next? >> well, what happens next is there's a lot of outrage in washington senator mccain and carden came out very strongly challenging the secretary of state tillerson on this issue and lots of other people in washington are saying let's get this thing fixed bill browder should not be banned from coming to america. he's the kind of person we want in america, not banned from america. >> all right, bill, keep us updated, okay? >> thank you >> bill browder calling in from london all right. bitcoin is pulling back slightly today after hitting 6,000 fo the first time prince awe waly joining the doubters, more like haters we'll tell you what strong words he used and we'll also talk to the man who broke the latest turn in the bill o'reilly sexual harassment case. the "new york times" writer who unearthed the massive settlement next nah. not gonna happen.

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hi, i'm the internet! you knoarmless bowling.lt? ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour. welcome to the second hour of "power lunch. i'm melissa lee. here's what's on the menu, s&p coming off a perfect week.

five straight days of closing highs one-third of index companies reporting earnings this week. are we at risk of derailing this perfect streak and a big payout involving former fox news host bill o'reilly including a massive $32 million settlement the reporter who broke the story is ahead and play ball as the world series kicks off tomorrow. we'll speak with the owner of the san francisco giants about who has the upper hand an action-packed "power lunch" starts right now ♪ put me in coach, i'm ready to play ♪ ♪ today, look at me, i can center field ♪ let's get a check on the markets, dow, s&p and nasdaq all set new intraday record highs earlier before pulling back. right now the dow is still higher but not by much, 2.5 points at this hour. the s&p 500 is nearly higher by 3 and the nasdaq lower by 15 points any gains by the dow and s&p would mark the seventh straight day of gains

hasbro is the worst performer on pace for worst following weak earnings t-mobile company raises guidance and defense stocks continue their run, honeywell, boeing and raytheon all-time highs. amazon's second headquarters is sending cities into a frenzy. the company' saying it received 238 proposals from around the country. it's expected to make decision next year. one betting site has atlanta favorite with austin a second. cisco buys broadsoft and arconic named new ceo, market reacting to the news unenthusiastically the stock is down. fairly reliable bellwetters of the overall market, a trend you could see trending up or down, that has not been the case in over a decade so which stocks can investors look toward to get a feel for the market and the economy

dom chu joins us with a look at the new bellwethers, dom. >> hi, melissa when we asked experts on wall street of what they thought of in terms of who the next bellwethers are, we'll take you through some examples because everyone has an opinion. mike o'rourke says it's got to be apple may be no surprise, biggest company out there and most impact on the s&p 500, the nasdaq 100 and nasdaq composite. it's a very large at least bellwether out there also, it's not only a tech company but consumer company as well, indicator of consumer spending overall that's why apple is important. then we move onto another one. we're talking jim mcdonald at northern trust, chief investment strategist there he says it's walmart for that consumer picture because over two-thirds of our economy is driven by consumer spending. so perhaps walmart is a good indicator of that overall consumer spending picture. that's what jim mcdonald says. and then you look at some of these transportation companies take for instance what art hogan

says, chief market strategist at wu wunderlic skushts, it is hard to hide economic activity from transportation companies like fedex. those in size can really be good indicators of the overall economy. and one more to round out our foursome here. berkshire hathaway, chief investment officer says diverse set of businesses at warren buffett shop make it a small microcosm of the american economy. you have rails, insurance, consumer companies all built in there, utilities, power generation as well if you're looking for a mini conglomerate like the economy, check out berkshire hathaway. >> dom, i have a question. >> yes. >> the dow is price weighted index, so let's throw berkshire into the dow, all of a sudden we're at dow 40,000 overnight. >> we could, but maybe look at the b shares it wouldn't be so bad, right >> that's true it would help though you don't like the makeup?

just switch the components dom, thank you very much let's talk more about this incredible market run, bring in cnbc contributors tim seymour with trio general and kenny pulkari. how much do you think the current components of the dow reflect the real economy is it time for a little updating here i know that wasn't the topic of the segment, but you can handle anything. >> no, i don't think so. they changed the components of the dow, what, four or five years ago when they added microsoft into the dow along with what was the other one they added? i forget when they updated but i actually think the dow is fairly reflective of the u.s. economy. the only thing you might say, you know, with the other segment that dom did, the gentleman that chose walmart as the bellwether, i'm surprised that none of those guys chose amazon as a bellwether think about retail i would think about amazon, which i think today is much more reflective of

the consumer and retail and the way people go shopping so i would pick amazon over walmart. and you might want to think is amazon a name that should be in the dow. you know, we could argue about that i think it's fairly big enough that it at least warrants a discussion. >> tim, that's kind of the funny thing, right a lot of people, market participants will tell you nobody follows the dow, it's a mom and pop, main street barometer, but pretty much by every index, as seymour index should be by the way, are you surprised by a broad base strength of everything not just here but globally >> look, the breadth is one of the things bulls are hanging onto if you think about how we got through the first couple phases of this rally a lot was just about a rerating multiple. we're actually doing this on an eps, upward revision seem to be extraordinary. and then, you know, tech which certainly has all the cyclical components that should be part of what i think we're seeing global synchronized rally, we're seeing reflation, et cetera, but

the last part of this rally has been coming where value has been more important to own than growth and i think it will continue to be so. and if you look at some of the big industrial names within the dow, that's been, again, representative of where this rally is so, look, it's been very difficult to find negatives out there outside of fear of central banks out of north korea when in fact you actually are doing this through earnings and you're doing it at a time when interest rates are at historically low. >> what's your bellwether, tim >> i think, you know, first of all, you have to look at an apple and you have to look at a facebook and amazon to get really a sense both not only where technology is and where consumption is, but i think, you know, the banks really right now are the most important sector. i think the financials which probably have the most room to get back to pre-crisis valuations, i'm not saying they get there, but they're representative of where we see long growth, where we see the asset management business, which is the wealth effect playing and

certainly a global cyclical element of their businesses, bank of america, softbanciti ba. >> thank you. >> shares of twenty-first century fox are lower as decision to renew contract of bill o'reilly despite knowing he had settled a major harassment suit he had reached other settlements dating back to 2002. earlier this morning nbc news anchor megyn kelly on her show spoke up about how she was treated by bill o'reilly and her former employer fox news. >> women everywhere are used to being dismissed, ignored or attacked when raising complaints about men in authority positions. they stay silent so often out of fear, fear of ending their careers, fear of lawyers, yes. and often fear of public shaming including through the media. at fox news the media relations chief irena brigante is known

for her vindictiveness to this day she pushes articles on certain ailes accusers like the one you are looking at right now. >> michael schmidt and emily steel of the "new york times" broke the story of a $32 million settlement for just one woman who accused bill o'reilly as part of the story the two sat down with him for on the record interview, one of those reporters joins us now mike, thank you for joining us this was a massive settlement $32 million for a woman who appeared on bill o'reilly's show for 15 years what did she allege? >> she alleged over her time at fox news o'riley repeatedly harassed her, an unconsensual sexual relationship and he had sent her a bunch of pornography. now, she came to -- her lawyers went to o'reilly's lawyers at the end of the year and within a matter of days they came to one of the largest settlements we've ever heard of certainly at fox

since all the ailes stuff began last summer -- i guess two summers ago. and, you know, it was a remarkable amount of money, but the deal was structured in a way that kept that figure from fox. >> how is consensual sexual relationship different from rape >> we're just going based on the information provided to us fox had given us on the record statement that laid out what was in the complaint and that was how that they described it so the thing is that there are lots of questions with the relationship with bill o'reilly but as part of their deal, part of the settlement, the complaint was destroyed. there's no longer a copy of it anywhere. >> can we read out bill o'reilly was very angry about all of this and he tweeted out a link to a pr statement and then he posted this document signed by her and in 2016 i hired counsel who prepared a draft complaint asserting claims

against bill o'reilly. we have since resolved all of our issues i would no longer make the allegations contained in the draft complaint. so he bought her silence. >> well, $32 million is an enormous amount of money and as part of the deal she agreed to sign that affidavit and also agree that she would put out a statement that her and o'reilly had it come public. we went to her in april when we first heard about this and we got a very ambiguous statement back in which she basically didn't really address the issue. it took us many more ponts of reporting to get to the point where we were at to do the story this past weekend. >> so o'reilly actually sat down and spoke to you and the other reporter who broke this story. and this is a quote from that interview, if i may, identify never had one complaint filed against me by a co-worker in any hr department in 43 years in 12 different companies but all of a sudden this stuff happens.

the pain it brings to my children indescribable what was your reaction when you said that knowing all of the settlements that had been come to in the past >> well, there have been six settlements related to o'reilly in his decade at the network a complaint was made against o'reilly and his claim that there were no complaints was not true this is something he has maintained since we did our first story six months ago that there were never issues related to him at all. never anything filed but in his interview with glenn beck today he did acknowledge at least three settlements that he had made during his time at fox. so, you know, i'm not sure how he gets to make that statement, but that's his claim. >> well, we have some sound. you guys recorded the interview. it was an on the record interview. you recorded it. here's some of -- we're going to play it for the audience and

maybe that explains what his defense was about why he wanted to settle. take a listen. >> what do the human beings want this is horrible it's horrible what i went through. horrible what my family went through. this is crap and you know it. it's politically and financially motivated. and we can prove it. with shocking information. but i'm not going to sit here in a courtroom for a year and a half and let my kids get beaten up every single day of their lives by a tabloid press sit there and you know it. >> michael, what he implies and i listened to the blog post this morning or the podcast this morning is that the reason he said all this not because they were true, these allegations, but because he didn't want the public scrutiny of a trial, et cetera. >> yeah. he thinks he's a target here and has been a victim. he thinks that in the -- that because of his stature and

because he's a controversial person has a lot of money that he is a person people will make accusations against him will profit off of that he thinks that that has certainly accelerated in the time after ailes, since ailes has left he's made three deals and he has also, fox found out about one that he had made years earlier. now, the whole part about this is fox still re-upped his contract knowing this. fox knew about the accusations made by lis wiehl in january and around that time began contract negotiations with him. and they came to an extension by the middle of february and that was for, you know, to give him a pay raise by several million and extend the deal by at least three years. >> michael, this is $32 million paid for, i assume, by him self, not by fox, correct? >> fox allowed o'reilly to treat this as a personal matter. they said mr. o'reilly could deal with it himself and fox gave -- and we have no evidence that fox gave any money to her and this was all out of his

pocket now, the payments are going to be made out over a period of time, over a period of several years. and that's sort of to keep ms. wiehl quiet. not to take the lump sum and begin talking. >> i wonder if she's worried about the revenue stream now if he doesn't have work or the same he had before. >> his books are very successful still even though he doesn't have a show, his last book was a "new york times" best seller so he still has a reach. he still has a following he still has a website he has podcasts. he has a real following. the president retweeted him just a few weeks ago. so, you know, he has a lot of fans out there and a lot of people that obviously are not fans of his. >> o'reilly obviously sounded angry, particularly in that clip that we just played, michael did you get a sense that he believes he will be vindicated at the end of the day? and how he might achieve that? >> i think he does i think he thinks he's going to fight his way out of this and

try and prove, you know, why our reporting was wrong or why the accusations from this woman was wrong. but if you look at mr. o'reilly's statement after our story came out on saturday, he didn't point out anything that was actually wrong of this story. he said that we hadn't posted a copy of his affidavit he had given us, we mentioned it three times in the story so the attacks were more on that end than they were on a factual basis. >> all right, mike, thank you. michael schmidt from the "new york times." and "power lunch" will be right ba ck impossible to ignore. the strikingly designed clexus nx turbo and hybrid. lease the 2017 nx turbo for $299 a month for 36 months. experience amazing at your lexus dealer. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed

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saudi millionaire investor prince speaking exclusively with andrew ross sorken on "squawk box" earlier today his king of holding company has been huge in investing in companies like apple, citi bank, e bank and more. considering his company makes most of its money from petroleum, his comments on tesla and electric vehicles are what caught many by surprise. >> that's not a fact the fact is also all other companies are going the tesla path of electric cars and autonomous cars. so clearly the conception of oil more than 70% is linked to consumption of cars. so clearly the direction is moving that way. so five, ten, 20 years, there's no doubt that the dependence on oil will have to diminish.

>> so you fully accepted that's what's going to happen >> that is a fact. >> well, on the same day that the prince makes his case for electric car domination down the road, new reports emerge that tesla may have struck a deal to produce cars in the world's largest electric car market, which is not here. phil lebeau is live in chicago with more. phil. >> brian, this is going to happen at some point tesla has made it clear it plans to ultimately build vehicles in china, the question is will it be a wholly owned final assembly plant, or will they partner up with a chinese company as all other automakers do in that country according to "the wall street journal" tesla has agreed to a deal to build a plant in shanghai it will be wholly owned, that means no chinese partner what does that mean? it would mean that vehicles built in china would still be subject to a 25% tariff. remember, china is the world's largest auto market and tesla has said that it plans to make some type of a -- potentially by

year end in terms of what it plans to do in china tesla is working with the shanghai municipal government to explore the possibility of establishing a manufacturing facility in the region to serve the chinese market and, again, we can't say this enough, china is not only the largest auto market in the world, it's the largest market for electric vehicles. here's more of what prince alwaleed had to say. >> okay, we don't have that it looks like, phil. >> apparently we don't the bottom line is this, guys, look, tesla is going to build in china at some point. but we need to find out first of all do they go completely on their own without a chinese partner? and how much might a 25% tariff on every tesla vehicle if it's constituted, which it already is right there because they're imported but those built in china how much would that hurt

demand >> aren't they worried about intellectual property getting ripped off >> sure. absolutely all automakers will tell you at some point you've got to open the kitchen and allow the chinese in that's part of the deal. i remember way back in the '90s when general motors was first saying we're going to go into china, everybody said rick wagner's crazy you give the chinese too much information it ain't going to be long before they boot you out and you're not going to do any business there what's general motors in china right now? number one, if no co-number one along with volkswagen. >> okay. >> people are looking at this saying that's the price of doing business with the auto industry there. >> thanks, phil. >> you bet. >> prince alwaleed also weighing in on bitcoin saying the krip to currency will imploed. we'll tell you why he's so bearish straight ahead and fast food earnings kicking atf tomorrow with mcdonald's wh stock to bite into ahead of results. lolts more "power lunch" ahead n. thinking planes.

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food and restaurant players tomorrow before the bell comp store sales are estimated to rise by 4.7% globally and 3.6% here in the u.s while hurricanes harvey and irma could have an impact on comps, mcdonald's does have a large presence in florida and texas, some analysts -- and pushing to that space because mcdonald's has been testing delivery in the u.s. via mik delivery partnership now in 13 countries and 3,500 locations. scott says this could contribute to a percentage point rise in comps here in the u.s. and potentially offset any storm impact another thing to keep an eye on our sale performance of newer menu items including butter milk chicken tenders and the company's continued push into the fresh beef space in 2018 last quarter the company did offer an earnings beat thanks in part to discounts on mccafe beverages and sodas that national value beverage could be in focus for tomorrow's report now, you should look out for any mention of the experience of the

future of those kiosks should be in 2,500 locations by the end of the year and mobile ordering should be nationwide today the stock is trading lower, but as you mentioned so far for the year it has been the best performing fast food stock up close to 35% year-to-date >> kate, thank you kate rogers. fast food stocks are starting to report as we mentioned if you're an investor, it's time to place your order so to speak. if you're not sure which stocks are worth buying, lelts help you here david palmer, analyst at rbc, and analyst from wedbush david, mcdonald's is one of your top picks. what's going to get me beyond the 35% i have in my pocket this year >> you never know how the stock's going to react on the quarter because a lot's been prebought. the valuation even with higher growth peers in the space, but the momentum's there and visibility's there because of the multifaceted turnaround that the lead in highlighted there are some things perhaps --

there's a new ratings system in place and we're seeing a lot of the restaurants sold by c operators to a operators there's so many elements to this turnaround it feels sustainable. the value part of that you mentioned what happened in the summer with dollar beverages that match with signature burgers. you're going to see a lot more of that barbell approach to value and premium with food renovation being at the core as well so we like mcdonald's from here still. >> food renovation, that's a new term for me. nick, i'll go to you one of your top picks is wing stop i thought there's wing inflation, that was going to be a huge headwind for anybody who deals with wings. >> there certainly is wing inflation, but because wing stop is 98% -- they don't necessarily see the impact as someone like a buffalo wild wing which is more company own mix. the bottom line is the top line seems to, you know, continue to see quite a bit of momentum.

and we think they're easily going to hurdle after expectation the border they're doing a lot of the right things in terms of both price and advertising, position the brand for continued mid teens type of unit growth for the foreseeable future. >> you both cover chipotle, there's a big controversy over how well received its queso has been so, david, what's your take on that new offering? and is queso -- well, chipotle always wanted in terms of margin stabilization, it's got great margins if it could sell enough queso. >> and it could also be a help if it was executed well in broadening the family use teens and tweens getting that consumer that's been going to mo's or qdoba. the early feedback has been mixed from the consumer. all we can do is look at some of the survey work that we see out there and social media postings have been negative to mixed. and unfortunately it feels like

this is something that we'll either be reformulated in the future or just be a miss but what a great opportunity this could be to help run the user base if they executed well. >> nick, what's your take on queso. does queso need food renovation, so to speak? >> well, it does seem like it's adding about 3% to 5% in terms of the run rate with comps but the problem is you don't really know if that's near-term or sustainable i'm one of those that kind of wants to say it's just short-term trial the underline trend line is probably going to go back down to that flattish comp as the quarter progresses i don't see this being a medium or long term driver. i continue to think margins are going to continue to be under pressure if you can't build sales whether through queso or some other measures, the margin profile long term is something much, much, much lower than what current expectations imply. >> all right got to leave it there.

david, thanks. you also like qsr. nick also likes jack thanks a lot, guys. if we were drinking queso in that segment we'd all be happy morgan, cnbc update, don't say queso. >> oh, cheese. thanks, brian. here's your cnbc update at this hour, police investigating a third suspicious death in tampa. the latest a shooting of a 20-year-old autistic man on thursday night he may be linked to two other deaths in the seminole heights neighborhood in the past ten days residents are being urged not to walk home alone at night a well-known russian journalist is in a medically induced coma after being stabbed in the neck by an unknown attacker the 32-year-old was in the studio of her independent radio station when the attack took place. the assailant is at large. this is the latest in a string of attacks on journalists in moscow first lady me lain lania trump visiting a school in michigan,

education secretary betsy devos also attending the event, they participated in lessons about respecting others and kindness and london taking a fresh step to battle air pollution. starting today drivers of cars which don't need the latest european emissions standards will have to pay a special tax it will cost them $13.50, we did the conversion from pounds for you, every time they enter central london and, guys, this is on top of the congestion tax so if you thought driving in new york was expensive that's the cnbc news update at this hour. back over to you. all right. morgan brennan, morgan, thank you very much. bitcoin is up more than 700 pngt in a year, but another high profile investor is calling it a fraud. one that should be compared to enron. needless to say your upcoming guest disagrees. brian kelly coming up to defend bitcoin.

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to say it's been a bizarre two trading days for ge investors is an understatement after disappointing earnings the stock dropped 8% on friday morning only to rally and end the day higher that optimism though short lived because ge shares fell at today's open and now down more than 6%. jeff covers ge for vertical research partners, has a hold on the $20 target jeff, what the heck is going on with ge? was that all short covering friday afternoon and this is the real path? >> yeah, brian, i think it was a combination of both short covering and people did respect and like the fact that john flannery spoke with such candor. but, you know, the candor doesn't really overcome the fundamental problems i think once people kind of really dial it into the numbers they really saw there wasn't much valuation support up here in the mid 20 range where the stock was heading on friday. >> ge may have a lot of problems what is in your mind the one or two biggest ones that they need to fix as job one right now?

>> well, they are actually dealing with accumulative negative effect of a lot of poor capital deployment decisions, so that doesn't get rectified overnight, but the proximate cause of the immediate earnings hit and problem with the cash flow is the power business some of this is now going to be out of their control because the business is cycling lower, but they're going to have to aggressively cut costs in that business and downsize that operation. and we've seen same sort of comments being made about factory footprint in the last couple weeks the business is in a clear downturn. >> here's the last question, do you believe john flannery has effectively flushed most of the news out as a lot of new ceos tend to do, just get it all out, there's nowhere to go but up. >> i don't think he has. i think we went a long way towards that on friday with a shockingly bad result. and '17 which people will model, you know, use as a baseline to model into '18, but i do think we're looking at a dividend cut

and that shoe needs to drop. >> jeff sprague, vertical research partners, thank you very much. >> thank you. bitcoin may have surged above $6,000 on friday to a new high, but saudi billionaire investor prince alwaleed bin talal remains unimpressed. >> i just don't believe this bitcoin thing. i think it's going to implode one day. i think it's enron in the making. >> really? enron in the making? >> completely. >> because >> it doesn't make sense it's not under the control, not under supervision of any federal reserve or any other central bank so i just don't believe this whole thing at all i think it's going to implode. i'm in agreement with j.p. morgan jamie dimon. >> so bitcoin and enron in the making joining us to discuss is brian kelly, actually invests in all the cryptocurrencies

you said to me earlier today that saying that is akin to saying the internet is a fraud what do you mean by that >> well, listen, i mean, bitcoin is a protocol, very similar to smtp, the simple mail transfer protocol that lets us send e-mails all day long all bitcoin is is a software program that allows us to send value over the internet. so to say that bitcoin is an enron in the making or bitcoin is a fraud is exactly like saying bitcoin -- the internet is a fraud and the internet is enron in the making doesn't make sense. >> some people say, you know what, brian kelly, bk, you sound like you're talking about block chain, which jamie di momon is a fan of what you're referring to that's akin to stml, is that really the block chain aspect as opposed to cryptocurrency aspect? >> you cannot separate the two if you simply have block chain,

that is a database, we store stuff in it. but in order to send the value from one person to another without a middleman, without a financial service person, you need that token, bitcoin or some other token. i don't know if it's ultimately going to be bitcoin, myspace existed well before facebook, but you need to have the token, digital currency is as important as the at sign in your e-mail signature. >> one of the criticisms that many people have is that it is not controlled by the government there are no regulations over this does that make this more dangerous? and if the government does come in with tougher regulations, could that actually sort of lend some respect or burnish bitcoin as a safer place i don't want to say safe place, there's no such thing as a safe investment, but a place one could invest in? >> well, listen, i mean, certainly bitcoin came out of the ashes of the financial crisis and it was something to go around government control. but gold isn't controlled by anybody except the people that

own it, so it's the same type of thing. one, we already do have government regulations if you're operating in the space, you need to be following the s.e.c. rules, you need to be following the nesd rules, that's how it is. those exist already. and if there is government regulation, to me that'd be the greatest buying opportunity of all-time because my biggest fear is they just flat out say it's illegal. >> all right brian, we're going to leave it there. always great to speak with you on bitcoin >> my pleasure. the world series isn't the only big sports event this week. the major league soccer playoffs are kicking off on wednesday we got a guest coming up and owns part of both baseball team and mls team ow lchisacin two minutes.

well, this next stat should finally put to pasture anybody who thinks soccer is a niche sport. attracted more than many nba teams and even more than four different baseball teams that operate in much bigger parks the co-owner of one of those teams, the vancouver white caps. they are in the playoffs, third full-ti in four years, also owner of san francisco giants, jeff, you got a lot going on

we appreciate you joining us thank you very much. glad to hear your winery did escape damage in the horrific fires. let's stay focused on soccer it's been quite a run. how much more runway does the mls have in your mind? >> well, i think first of all we're in classic overnight success after being at it for 22 years. this is our 22nd season. so i still think in the big picture early days especially as you compare us to the other north american professional sports so to answer your question, i believe there's still significant upside across all core operating principles, attendance, our media business, our global footprint we're 170 countries watch us we're still in the early days of what could be a big business here throughout north america. >> i know you're a canadian team, but does the u.s. failure to make the world cup in soccer injure mls at all?

>> i think first of all like everybody i was gutted as we say in the soccer world. it's just heartbreaking to see that occur and then you see the immediate reactions, bruce arena being moved out of there and easy to get tactical and say we should have and could have, what have we done. but i think the bigger picture, what i think we continue to need to focus on major league soccer and u.s. national programs is the development of players and i think that wakeup call that just occurred with the tough loss will hopefully be a real positive to sharpen our focus and get things right and hopefully that will be in june of next year in '18 will be successful bidder for u.s., canada and mexico for the world cup. >> pay $2.2 million for the rockets asked about the value said doesn't matter i'm never going to sell the company. it's a family asset, generational asset are you going to keep control of the vancouver white caps do they have a long-term future in vancouver if somebody came and offered you

$400 million for the company, for the team, would you sell it? >> well, first of all, born, raised in vancouver. soccer player and grew up a white caps fan so i'm one of those that's really -- it's in my dna so my outlook and my partner's outlook is this is an asset we would actually love to pass onto our kids we enjoy it. we see the impact. we have 21 academies across all of canada. it's not just in vancouver or in establish columbia we're actually doing a whole national program it combines the things i love which is sports, business and technology. >> but i guess for the right price -- >> i'm a member of coo of yahoo, yes. >> it was a real pleasure to have you on. sorry didn't get that western conference title, but good luck wednesday night, big game i'll be watching. thanks, jeff. >> thank you. >> the s&p on pace to break a major record at the bell we're going to tell you what it is and how to trade it stay with "power lunch."

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because you're the smartest audience on tv you know the stock market has been red hot, but did you know it's actually making history along with

records? check this out according to lpl financial, the s&p 500 is now in its 242nd trading day without a 3% drop, nearly a year. that, my friends, has never, ever been done before in any bull market bull market in american history. wow. todd gordon with tradinganaly s tradinganalysis.com. jina sanchez when i hear this kind of stuff, first off, it's literally an historic rally it's cool. buzz it make you nervous at all? >> it does absolutely, brian. i do think we are in the latter stages of this bull market, and the way i would quantify this is we look back to the grandfather of technical analysis, charles dow. along with the dow theory with the industrials confirming where the transports go, there is another component to it which says there's three primary phases of a market trend there's accumulation, widespread participation, and distribution. i think we're in the distribution phase that being said, i do see room up toward the top end of this channel, once we start to paint

that in, up around 3,000 now, to talk about how quiet the market is, brian, i have a chart, i have empirical proof to show you this is the quietest in terms of a range stock market on a monthly basis back to as far as 1905. we're at about 4. 5% monthly high to low range, the quitest in history we've never seen a tighter market that spells complacency and makes he worry. >> nearly a year without a 3% drop has never, ever happened. you could say this is the greatest bull market in the history of the united states, but most bull markets at some point come to an end do you think this one is going to, and when >> well, i can't tell you web it's going to come to an end, but, yes, like all things, this, too, shall end and the concern that i have is that if you look at that complacency, it's largely been fed by a huge drop in correlations so basically you are just

diversifying away all risks, meaning the underlying stocks, brian, are much riskier than the aggregate looks like you know, that very narrow range that todd was talking about, that's being diversified away by these low correlations and lulling people into a severe sense of kpla sen complacency. >> what do you mean severe why use severe >> because you haven't seen pair-wise correlations this low since 2001 right before the dotcom bomb and then correlations started to rise and that's when we started to see more and more coordinated macro events moving the market around >> yeah. and todd, last thing, nontechnical, something i was, i was flipping through barons this weekend, every other page is an ad for a new etf do you think there is $3 trillion under assets in etf, do you think there's an inherent risk to the concentration of money that's just in big

multi-hundred stock devices? >> it's unbelievable i forget the exact statistic but there's more etfs out there trading by a factor of a lot than there are individual stocks that are made up of these components so, yes, i do think it's a big-time concern. to jina's point, the correlations are not there why is gold not breaking down? why are bonds not breaking down? the stock market is usually the last man on the team to know and right now the stock market seems to not know what other macro markets are saying so i'm staying long for now but this isn't going to end well. >> not going to end well you're on the record todd gordon, jina sanchez, thank you very much. for more "trading nation" go to tradingnation.cnbc.com. >> don't move because "check please" is next. and now the latest from tradingnation.cnbc.com and word from our sponsor >> traders shouldn't let their politics a afect theirtrading.

look to the current price traen and build an exit strategy based on where and when the present conditions may change. this will help keep your biases at bay as the markets often react differently than we might expect

after naming a new ceo morgan brennan joins us now. guess they don't like him, or her. >> i think we have the new ceo announcement this morning, without a permanent ceo since

the last six months since left in the midst of a proxy fight with top shareholder elliot management the new ceo that will start in january is chip blankenship, a ge alum, comes out of their aerospace division, aviation division as well as appliances initially on that news the stock premarket was higher i think the reason you seeing it higher and at session lows is really not that news it's the earnings. so it was an earnings miss, revenues were better than expected but the full-year numbers, this really came out of the conference call, it could seem the costs are not coming down particularly in aerospace and engine rampups as much as anticipated. i think in is really more of an earnings story that's droiving this stock. >> sounds like this is an arconic-specific problem, you'd think the end markets in particular are doing extremely well. >> you're talking about really an unprecedented production rampup for next-generation jet engines. you're hearing about with all the companies in the industrial space that ha exposure to it,

arconic, it would seem from the comments on the call today, has been having some issues with costs for some of the parts that supplies y it supplies keep in mind with the management woes, we had the exposure potentially to the grenfeld tower, deadly fire in london, with all the stuff going on this year, the company is only just about a year old stock still up more than 3% for the year >> morninggan, thank you. shares of etsy falling more than 3%. amazon launching a new amazon handmade program the gift shop adds event-specific goods for wedding and holidays handmade sells hand crafted goods to 30 countries. and take a look at grubhub, stock falling on another amazon announcement, the company saying customers will soon be able to order local restaurant takeout straight through the amazon app. so grub shares are down more than a percent check please. >> speaking of amazon. "check please" today, couple

orders, some plastic bins from amazon in florida. should be pretty light, right? they arrive. they're really, really heavy what do they find? 27 pounds of pot inside. instead of amazon prime, it's am dan p amazon premo maybe who knows how that happened. only in florida. >> they returned it, called the police according to the stories. >> all great stories start with the same three words, "a florida couple." >> always florida. always florida all right. i'm taking a check of shares of united continental those shares still under pressure even after, of course, oscar munoz last week saying the company basically dug itself into a hole in terms of not spending enough money to keep up with its competitors it has been almost a straight line lower since that day, since president 19 the 19th continuing to watch pressure on shares of united continental this is doing much worse than the overall airline sector. >> ge engines on united planes, mine is ge, guys this is going to go down as the stock story of the year.

ge is down 29% today we had an upgrade. a downgrade. and a downgrade to hold. we had an -- analysts don't know, investors don't know it's a huge story. >> certainly s >> yep. >> thanks for whiatching "power lunch. >> "closing bell" starts right now. welcome, everybody, to kt the closing bell," i'm sara eisen here for kelly evans at the new york stock exchange. >> welcome back. >> you're wearing the wrong tie. >> i know, it's my fault. >> we're so -- >> we'll collect that tomorrow i'm bill griffeth. what a difference a day makes after a stellar comeback on friday as they were just mentioning on "power lunch" general electric selling off on the back of an analyst downgrade. we have the -- in fact, there was also that upgrade. markets ignoring that. they're going with the downgrade. we have details. >> dividend worries are there. >> l