carmax is an interesting stock it's pulled back a couple bucks today, saw huge buying the last couple weeks >> is mcdonald's $200 price target light >> no. not a fan. >> i have the stock. >> go ahead. ten seconds. >> the market hates gold gold's up 9% i buy. >> thanks for being here "power lunch" starts now here's what's on the "power lunch" menu. stock market that's been on fire this year. tax reform, the fed's plan to raise rates and talks of an overdue correction what do investors do next and where are the opportunities to make money in 2018 defanged the big tech names that have been taking it on the chin the past week or so are bouncing back a bit today, but what does this all mean? is this a buy the dip moment and bitcoin sobering again some investors are marking their line in the sand a speculative bit waiting to explode or the investment of a

lifetime we debate it "power lunch" starts right now we have to rename the show bitcoin lunch. i'm brian sullivan stocks are steady this hour. the nasdaq higher fueled by a rebound in some big tech names like ebay and electronic arts. after a few days of weakness, technology, the top performing sector today semiconductor stocks like micron doing pretty well. some other companies you need to keep an eye on, whole brothers having one of its worst days in a long time. it's a case of good not being good enough. investors wanted more. coffee is hot. dunkin' brands hitting intraday all-time highs, up almost 220% from its ipo in july of 2011 and 21st century fox up, disney down the two are getting closer the a potential $60 billion deal that could come as early as next week >> thank you very much

welcome, everybody we begin as we have so often in this eventful year in d.c. president trump meeting right now with the republican leaders of the senate. he spoke to the media just moments ago. let's get to eamon javers at the white house. >> reporter: you might be able to hear them cleaning up the leaves here at the white house behind me. there is other work as you mentioned going on here at the white house. the president meeting with republican leadership. seated right next to one of his stiffest critics in the senate, jeff flake of arizona, who announced he would be leaving the senate at the end of this year and gave a speech earlier this year in which he denounced the president's effect on american politics. nonetheless, flake seated next to trump at this meeting today along with joni ernst. flanking trump on the other side, who has also been critical of the president this year nonetheless, the president giving an upbeat report here on where they stand in terms of the tax bill and where he thinks it will head from here. here's what he said. >> i think something's going to be coming out of conference pretty quickly as opposed to

long term. i think it's going to go pretty quickly. we are all on the same page. there's a great spirit in the republican party, like i have never seen before, like a lot of people have said they have never seen before, they have never seen anything like this, the unity. >> reporter: so the president there saying that he's never seen anything like the unity in the republican party as he's flanked by two of his critics in that republican party. i can tell you i have talked to republican folks here at the white house today who said their focus is very much on this december 8th deadline for a government shutdown. that's going to be a key negotiation on thursday, when you have democrats coming here to the white house to meet with the president after a failed attempt to do that meeting just last week. the white house says they would do a deal immediately if they could with the democrats but are deferring to capitol hill negotiators who are suggesting a two-week continuing resolution to extend this until christmas and then possibly voting after christmas is the right way to go for now. tyler, back to you >> i will pass it to michelle. to the markets now a number of sectors have rallied

in the past week on optimism about tax reform the potential boost it could give to earnings beyond the tax bill, traders are divided about what to do next in what is now this record-breaking bull run bob pisani is taking a closer look at the options. >> the tax cut play has been tremendous in the last week but it may be playing out a little bit. let's take a look. here's the story it's been very simple in the last week. with the tax cuts, you buy the companies that have the big earnings boost, energy, banks, telecom, and sell technology that would get less of an earnings boost we have seen that and it's worked if you look in the last week, sectors gainers and lagers, banks, energies, industrials, telecom doing great, technology has been selling off hey, however, here's the problem. it's reversing today and it's really started reversing yesterday. so look, tech is up, banks, energy not doing much, industrials, not doing anything here people are saying maybe this thing is kind of running its course naturally

bank stocks, remember, facebook was down 6% close to the close yesterday for the week, last five days they are all reversing. lot of it's up 1%. how much is left and remember, we're not out of the woods with this tax cut this is not finished they are very concerned about the fact the senate would put off the tax cuts until 2019. the president has made a comment the tax rate could be 22%, not 20%. folks, this is half a loaf lower than expected earnings boosts is what we will get from this this could be a significant disappointment to the market we're not done with this story yet. after this, though, everyone is trying to figure out should you sell on the news and boy, there is a loud and noisy camp that says folks, we get a tax cut and you sell going into the new year i'm not so sure about that i don't think they have the fire power to pull that off i think a lot of people want to hold on particularlywith potential tax cuts why sell now when you could sell with tax cuts. the important thing is january that's when people will say are we getting the global growth that we will have to support the high earnings levels that we have and the multiple. that's where the debate will be

within the next couple of weeks. back to you. >> robert, thank you very much of course, it has been an incredible year for your money, 2017 so what's next about 2018, where are the opportunities, the risks, what's an investor to do? mike bowlsang, david speka, gentlemen, welcome why don't we pick up there what kind of year do you see for 2018, mike, and analyze it in light of one thing that is critical in this house-senate conference over the tax bill and that is when corporate tax rates, lower ones, take effect, next year or '19 >> right so you really want me to completely take apart the stew this is a complex environment we're in we have an unknown tax destination right as we head into the end of the tax year for most investors that's part of the reason you are seeing rotation. 2018, assume there will be some tax relief, particularly on the

corporaten't fro front we like small caps they generally don't have as much ability to lower their tax bill as you go in so we like small caps. we think the cyclical trade is probably pretty good we are looking for probably a 10%, 12%, 13% that gets you to the magic number of 3,000 next year reasonable year for large cap and s&p 500 but we like small caps and probably our best and most interesting overweight is in the international sector as it catches up effectively with the u.s. >> david, pick up from there what do you see? >> we're not nearly as bullish when you look at where we are today, the market's trading at 18 times next year's earnings which are projected to be another double digit type earnings year which we're not sure can happen. there's a lot of political uncertainty. the tax bill as bob was saying, that's not a done deal there's a lot out there that really leads us to believe the market is probably due for a

pull-back. we are getting ready to face the longest period in history since even a 5% correction in the market so investors have not seen any sort of volatility. we are due for that. we think that could happen sometime maybe in the first quarter and if that occurs, you start seeing the market pricing in a little slower rate of growth and that's when things get a little more dicey. >> i will see your stat and i will raise you one i think this is the most incredible thing i have heard all day. how's that for a setup bank of america merrill lynch noting this morning that if stocks outperform bonds this year, looks like they will, it will be the seventh straight year they have done that that hasn't happened since 1928 and is only the third time it's ever happened in the 220 years since the stock market exists. >> yeah. that really spells out how little volatility there's been and how much optimism there's been great. we are optimistic. we like what's going on in washington we like tax reform but the optimism in the market, the growth of asset classes

really isn't justified by the underlying fundamentals. with a seven-year run like that, we are due for a pull-back >> wait a minute, guys if the seven years started at the very bottom of one of the worst bear markets we ever hope we live through incredible valuation place to begin look, i totally expect and we hope volatility will increase. we think there's a lot of complacency here no question. however -- >> mike, that's a great point you are making i understand there's causation and there's correlation. i get your point but i also wonder, records are made to be broken although tom brady just continues to shy up the -- shine up there in boston at some point won't the run have to stop? is it all-in forever and never think about anything again >> of course it is, and it will. but the point i guess is when you are in a world of synchronized economic expansion, valuations are not great but they are also not ridiculous

they are certainly nowhere near 1997, '98, '99 we are talking about a period where if things just simply don't go wrong, we should be okay that's really the game i think we are going to get volatility, i would be stunned if we end vix below 10 again next year. i think we will see choppiness i think the fact we have this technology versus sort of the laggards rotation going on right now is actually healthy. it gets out some of the animal spirits and sort of sets us up for another decent period. >> loving you is wrong, i don't want to be right mike, david, thanks. appreciate it. >> meatloaf? >> i don't know. >> i don't think so. >> who is that >> that was an old r & b song. >> overall, technology investors have been rewarded this year the triple q up nearly 30% in 2017 lately there's been cracks showing. facebook, google, apple and others down over the past month.

netflix has lost nearly 7% the billion dollar question thus is this. is tech's amazing multi-year run done or is it time to put your hard-earned money somewhere else andy hargreaves, senior analyst at key bank. i don't like using the fang moniker. it's hard to lump stocks together i know you don't cover amazon as well, but on a macro level, do you guys there, key bank, think there is a rotation going from big cap, big money tech into other stuff? >> well, you have seen that over the last week just on sort of a short term basis around the tax reform, because they aren't as big a beneficiary as some of the more domestic businesses on a longer term basis, though, no, i don't see that i think you still have some of the stronger secular trends in the world supporting the growth of these economies, at least in the facebook and google case, they aren't expensive relative to the growth they're producing.

>> what would you do then here if you don't see this as a foreshadowing of something bigger, better and broader for the markets, you are still all in buying these stocks at these levels >> yeah. facebook and google and netflix are still three of my overweights and i want to own all of them. like i said, you have tremendous, tremendous strength behind the growth of the businesses we haven't seen any signs of that changing and the valuations make sense to us yeah, we want to buy them. >> how much do you think about rising interest rates? we see the two year yield at the highest level since october 2008 the minute interest rates start to rise, start doing new models, discounting cash flows, et cetera it can hurt stocks with big multiples. >> certainly but i would argue that the multiples at least for facebook and google are not that big. >> i was thinking more about netflix. >> on the netflix side, it's more of an issue, not just because of the discount rate but you also have some debt there that you would have to

contemplate in the out years so it's more of an issue but really, going from 2% to 3% isn't that big of a deal if we went from two to seven, we would have other things to worry about. >> pleasure to have you on thank you very much. appreciate it. in the months since the hurricane pummeled puerto rico, over a quarter of the island, still without power. coming up, we will speak with a member of puerto rico's financial oversight board about why recovery efforts are taking so long. plus, michael novogratz will tell you why bitcoin is just getting going. what the futures will do one of america's hottest tras.de i'm here to talk to you about how at&t gives you more. and so am i. like how when you buy the amazing new iphone 8 you get another one on us. see we give you more phones and more spokespeople.

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it's been 11 weeks since hurricane maria made landfall in puerto rico. today the island's financial oversight and management board is in new york to hear the public's concerns on recovery efforts. one of the big issues being discussed, what happens with puerto rico's debt holders in the wake of the hurricane,

you may recall this is what president trump had to say about the island's debt. >> we have to look at their whole debt structure you know, they owe a lot of money to your friends on wall street and we're going to have to wipe that out that's going to have to be, you know, you can say good-bye to that i don't know if it's goldman sachs but whoever it is, you can wave good-bye to that. >> joining us now is jose carion, chairman of the board that oversees puerto rico's fiscal management. good to have you here. >> how are you >> good. we haven't had a chance to talk to anybody from the control board since president trump made those comments do you agree with him? do you think puerto rico's debt needs to be wiped out? >> well, it certainly needs to be restructured. that's precisely what we're doing. we are having several listening sessions to take into consideration the multiple stake holders that have issues related to our debt. not just the creditor class, but folks who would be affected in puerto rico and elsewhere.

so of course we take into consideration the president's comments but there are other comments that folks have made that we need to take into consideration. >> if i could articulate what i think is the dilemma that you face, puerto rico needs a ton of money, billions and billions of dollars, in order to put the island back together however, the federal government's not going to give them nearly everything they need so they're going to have to borrow they can't borrow right now because you're all in a big fight with creditors that's got to get solved before you can move forward and they can reaccess the capital markets so they can begin rebuilding do i articulate that correctly is that the issue that you guys face >> yeah. it's the major issue there's no doubt we're in a tough spot precisely, circumstances have changed after hurricane maria which is why we, you know, re-evaluate and will be redoing the fiscal plan we had certified

last march therefore we are taking into consideration multiple points of view from multiple stake holders in order to put together a credible plan that will be the path forward for puerto rico and for creditors as well. >> how much money is it going to take to rebuild puerto rico? >> well, the government of puerto rico has provided congress an estimate of $94 billion is what the government submitted. >> you think that's enough >> well, it's not my place to say. we're not tasked with the rebuilding efforts we will have to pass judgment over oversight of certain funds, particularly those that are provided by congress in the form of loans those will fall under our purview. but it's up to the central government in puerto rico to make those determine nations

>> for the viewer who hasn't been paying attention, puerto rico's finances have been such a mess for such a long time, long before the hurricanes occurred, there was this oversight board created by congress. you are a member of it now i don't mean to harp on the debt because as we show video of people suffering dramatically, a lot of people might think why are you so concerned about the bond holders when in fact, you need all this money for actually rebuilding the place but somehow they have got to be able to go back to the capital markets. what is your plan so that way they can actually borrow again, i have seen countries that can't do this. greece when they have to live on their own tax revenues argentina. puerto rico isn't a country, it's an island, part of the united states, but what's your plan for them accessing the capital markets again? >> right we are a territory of the united states i think it's important to note the majority view amongst the people of puerto rico is that we must repay some of our debt. i say some because it needs to

be restructured as you pointed out. we owe over $72 billion in debt and it's simply an untenable situation for puerto rico. our plan to move forward and regain market access which is an integral part of our mandate, our law, is to put together a credible fiscal plan with buy-in from all stake holders including the creditor community that will instill investor confidence and allow us to eventually return to the market >> is there an opportunity, not relying so much on the public debt markets but on private loans, apart from any loans that you might get through federal auspices, other private loans whether they are banks or private equity people or whatever >> sure, that's also part of the process and that's also being evaluated as well. again, everything is on the table in light of hurricane

maria and if light n light of t the new fiscal plan that we are elaborating takes into consideration the views of multiple stake holders and everything is on the table that's what we are here in new york to do today twha that's what we did yesterday and on two occasions and tomorrow we do it as well. we are listening >> this is the first time we have been able to have you on since the whole situation with whitefish. this was the small company in montana that was hired by puerto rico t government of puerto rico to try to rebuild the electrical grid there big drama, questions about how it is they got the contract. what's your thought on how that process went down and the hiring of that company? >> right so we have implemented, which is part of our purview, a contract review policy in order to find out and one of the contracts we are investigating, evaluating, is how that came about to be we were just as surprised as most folks and we had that

policy in place, as of four weeks ago. we will be moving forward with that issue and try to avoid further whitefishes going forward. >> thanks so much for joining us much appreciated >> my pleasure housing stocks have blown the roof off in 2017 despite so-so data and the prospect of higher interest rates ahead. why are investors so bullish on the housing stocks

thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si si! ya! ya! ya! what does that mean for us? what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how, so you can get business done. american express open. so you can get business done. ♪

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brothers missing expectations on lower order growth, but stocks of the nation's home builders have been on a tear all year are they too hot to touch or is there still room to grow and go? diana olick joins us >> the biggest builder, d.r. horton, up about 85% year to date and luxury builder toll brothers was up around 60% last week but off that high, still 50%, not bad, on today's earnings miss. confusing, when you compare this to actual home construction. check out the philly housing index. you see housing related stocks overall are up over 42% year to date but now look at starts single family up less than 1% from a year ago. investors are instead focused on order growth and orders at the big builders are moving steadily higher except toll today reported order growth weaker than expected and that's hitting the stock still, you have a shortage of existing homes for sale so the

builders are going to benefit from that. building products companies like home depot are also on a tear because people are staying in their homes longer and of course, upgrading. now, we hear builders complain about the high cost of land, labor and materials slowing down production, but on the flipside, that slowdown gives them a longer growth term there is huge focus on u.s.-based growth and there is nothing more domestic than a home builder back to you guys >> thank you it's been a whirlwind week for bitcoin, cracking 11,000 for the first time plunging to just over 9,000, then rallying goen ining again e weekend heading for 12,000 our next guest thinks it has a t rtr go. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95...

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we need to be ready for my name's scott strenfel and r i'm a meteorologist at pg&e. we make sure that our crews as well as our customers are prepared to how weather may impact their energy. so every single day we're monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california. hello, everybody i'm sue herera with your cnbc news update. turkish president erdogan says u.s. recognition of jerusalem as israel's capital is a red line for muslims in a speech to parliament, he said such a step would lead turkey to cut off all diplomatic

ties to israel general motors launching gm marketplace today. it allows two million gm owners to press a button on the dashboard to order food or coffee that they can then pick up minutes later in a drive-through lane users can also make dinner reservations on the go and find the closest gas station to save on fuel as well. mcdonald's, speaking of fast food, is bringing back the dollar menu next month but this time it will include items for $2 and $3 as well. there's a dozen items including cheeseburgers for a buck, a bacon mcdouble, didn't know there was one, it will cost you $2 while a happy meal goes for $3 and facebook's ceo mark zuckerberg is taking parental leave this month to spend more times with his daughter. facebook offers four months of parental leave for both parents. he took a month off after his second daughter was born in august that's the news update this hour back to you, brian

>> thank you very much, sue. bitcoin turning into the forrest gump of investments. it just keeps running. now more exchanges are looking to cash in on the cryptocurrency craze. i'm sorry, i couldn't resist, bob. >> good pun. you are a master of the puns bitcoin hitting another new high today ahead of a major event the opening of the first bitcoin futures market that's going to begin sunday night. let's talk to the man in charge of all this, ed tilley, ceo. congratulations. you have won this arms race to get to the first bitcoin futures. cme will do it a week later. i wonder what your take is on bitcoin. what do you think trading bitcoin futures will do for bitcoin? will it make it more respectable? will the shorts come in and try to blow up the price, will it lower the volatility what do you think is going to happen >> well, thanks, bob thanks for having me here. it's a pleasure. we are looking forward to the

launch sunday afternoon. it's been about six months of getting ready for the launch lot of preparation with our regulator, the cftc. what we expect first day, this won't be different, actually a very slow ramp-up. i think we will build liquidity in the coming days and weeks and months a lot to learn after that opening bell sunday afternoon. as for volatility, i think any time that buyers and sellers are able to express their interest in a lit transparent market, one with regulation oversight, sure, i think it might have a dampening effect on the volatility we have seen the last couple days on bitcoin >> i'm curious about what you think this will do for bitcoin do you think it will make it more legitimate? you are familiar with jamie dimon's comment, if you are stupid enough to buy bitcoin you will pay the price for it one day. he called it a fraud do you think this is an opportunity for bitcoin? do you think this is another great investment or is it a fraud? what's your take

>> i think with any investment vehicle, any way to express an interest in a commodity, the ability to do so whether it's jamie expressing the short interest or the short side, we have those that are investing in bitcoin each and every day and i think the meeting of those minds in a lit, transparent exchange is what we are trying to bring to the marketplace there's a suitability issue with every investment bitcoin should be no different i don't think we are setting up bitcoin and saying that's for everybody but we certainly know there's interest out there on the long and short side. >> what do you say to jamie dimons of the world who insist it's a fraud give us an opinion on this you are in the middle. >> i think as everyone, on any investment, you can have an opinion on any security, any commodity. if he would like to take the other sides of our longs i think that's great we will provide a marketplace

for him to do so >> got to let you go ten second answer. etf for bitcoin. i know you got turned down this year you going to reapply do you think the s.e.c. will approve it this time >> i think they will get comfortable. their charter is customer protection we have a long road ahead of us making sure they are comfortable with our oversight, our information sharing with gemini and when we get prepared to launch, it will be after months and months of dialogue with the s.e.c. we will get them ready >> ed tilley, thanks for joining us sunday night, opening of the first bitcoin futures market we will talk about that on monday thanks very much guys, back to you. >> appreciate that thank you very much, bob let's stick with bitcoin michael novogratz earned his millions on wall street. now he's making a killing on cryptoassets bubble fears began

good to see you. welcome. you have been on the other money -- did i say fast money? i was going to say fast money. feels like fast money. you talked about it extensively on that very fine 5:00 p.m. show we just named. give us the other side of the bitcoin argument as an investor your job is not just to say everything is going to go up all the time. your job is to look at investment opportunities and go here's the potential risk but the gain outweighs that risk what are the risks >> listen, we are in a speculative frenzy so period, stop how long can it go, who knows. what's interesting about this is it's global. in the internet craze of 1999, total market cap got to about $5 trillion, little more than $5 trillion pretty much a u.s.-based market. bitcoin, cryptocurrencies is a global market. 70% of volume seems to be happening between korea and japan. so it's a market based on his

fundamental belief that a decentralized world is better than what we have. >> okay. fair enough. but governments like what, control. what do governments want to control more than anything else? money. their currency >> one of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. i could legitimately see bitcoin go 13,000, 14,000, 20,000, 25,000, and see somebody balk. right now the regulators certainly in the u.s. but even around the world, most have been working with the system, they are intrigued by it, they love the technology, not just central bankers but you know, the regulators on the s.e.c. side, the fbi even, people originally worried this stuff was going to be used for all illicit purposes quite frankly, every trade that happens is put up on a block so in some ways it's easier to track. >> here's the thing.

when i read the original proposals about bitcoin and the creation of this, it was about control of the money supply, right? there will only be a certain number of bitcoins out there, hence the underlying value is not going to be diluted like we see central banks do but we see all kinds of new cryptocurrencies being created >> it was not necessarily about -- it was about worry that our central banks, our financial institutions have lost control >> lost control. >> in 2008 it was a breakdown of the system people literally thought it was armageddon this was born out of that feeling. all of these different coins, these tokens, are use cases for an individual sphere there will be a cryptocurrency or token for cloud sharing there will be one for ride sharing. so they are building new economies or trying to build new economies. >> why will bitcoin be the cryptocurrency of choice why shouldn't you be worried

there's going to be delution >> my belief is in each use case, one guy will win out bitcoin is winning out as digital gold >> which is not a currency bitcoin is not a currency. >> i never called them currency. >> thank you there's no way anything that volatile can be currency >> it's an asset right. nothing that volatile will be a currency >> you want $1,000 for your bicycle. i'm not giving you bitcoin that could be worth 10,000 next week. i just got screwed on the deal >> you are preaching to the converted. right now it's a store of wealth like gold's a store of wealth. price can go up and down >> what is it about the different -- when you say there will be a use case for cloud computing, use case for this, venezuela thinks it has a use case just for its country, so does russia. is it the underlying digital architecture, is it the programming? what makes one different from the other that makes it a better use case for a different application? >> it's building a viral community where people buy in. listen, why is a piece of art worth $450 million because someone said it was.

we are building a viral community in each of these places >> it's a fiat currency. >> what? >> a fiat. everybody has to buy in. like the u.s. dollar everybody buys in. >> everybody has to buy in or no one cares about it right. there are lots of pretenders that in some spaces, one might win for awhile, then lose out. all of these systems, all of these protokcols are way too slo to process the amount of transactions we need to be processed to justify these prices so like in any speculative market, prices are getting way ahead of implementation. that happened in the internet, it's going to happen here. we will go through a period of time where prices go way up and then there are big corrections and over time, you will see real business -- >> do you have any concern that governments are going to become so threatened by this that they will shut it down? >> i've got concern that price movements go higher, we will get more regulation.

i think it's hard to shut down not impossible donald trump could say anyone who does bitcoin i'm arresting i have seen stranger things happen this year but i don't think that's a probability. >> you would have to shut down the technology we ask -- people say, oh, they don't like bitcoin but they like the underlying technology. people who understand it say you don't understand, they are the same exact thing you cannot disintermediate them, right? >> block chain technology basically is shared data base. it's a decentralized data base that's an amazing breakthrough you are going to see it all over the place. >> before we let you go, off topic, you made a lot of money doing other stuff, too what's your prediction for the u.s. equity market next year >> you know -- >> got to spend all the bitcoin somewhere. >> i'm worried right now that we spent 11 months since trump got elected, a year since trump got elected focused on this tax bill, that was the only reason

we elected him, took all the crap we have to deal with just for this tax bill and it's just passing and maybe that's all the gas left in the equity market. everybody is long. hedge funds have had monster years. december 31st is coming. people could clip profits. i think we -- >> you talk to a lot of hedge funds i'm sure about bitcoin but the equity focus ones, are all long, long, long >> people are up 28% on the year, 30%. equity hedge funds had a great year normally a great year coming into december, you either try to ramp it a little but then you want to lower your nets way down so you don't start january with an 8% downdraft. >> real pleasure good discussion. thank you. >> thank you we got a news alert for you now. dom? >> this is the world of sports it's a big development here with regard to the winter olympics next year in south korea the international olympic committee has now suspended the russian national olympic committee and it basically is

saying the russian national team will no longer be allowed to compete as a team in the winter olympics in south korea next year what they will do is allow individual russian athletes and teams to compete after they have cleared testing for any kind of doping allegations, that sort of thing, after they cleared testing they can compete in their respective sports, but under a different title. they will now be called olympic athletes from russia, or o.a.r.s and they will no longer fly the russian flag if they do win. they will fly the olympic flag and if any medals are conferred, the russian national anthem will not be played. it will be the olympic anthem. very interesting development here a very strong step the international olympic committee has taken with regard to this whole anti-doping campaign and specifically targeting russia this time around but they are not going to be allowed to compete at least as a team in the olympics in february >> wow that is huge

unbelievable we will cover this more for sure thanks for bringing that to us >> wow so they can't compete as a team. there will be no russian march into the stadium there will be no flag, no anthems. but the individual participants presumably if they pass doping protocols will be allowed to participate and win medals >> one wonders if a la 1980, this will result in any countries that are sort of very close and friendly to russia from perhaps in sympatico deciding they will pull as well. russia not pulling itself but being banned from the 2018 winter olympics as a country big news >> the russians will be able to compete as an olympic athlete of russia that's how they will be tagged >> like the los angeles angels of anaheim >> don't knock it. >> how do they come in the stadium? do they not come in at all, door

they walk in the back? >> we'll find out. nbc, nbc universauniversal, parf cnbc, is the exclusive rights holder for the broadcast of the olympics. to the bond market rick santelli tracking the action >> the long end seems to be melting away a little. look at an intraday of twos. a staircase higher, up three basis points five year note yields are up, too, but literally 2.16 is pretty much that's traded all session. you go to the very long end, 30 year bonds are down two basis points right now tens are actually down one not an aggressive trade, not a data trade it just seems to be somewhat limping into the end of the year if you look at the dollar index, my favorite chart here, basically sideways except for we are at the top of a range. if we trade above 93.50, we are getting close, be the first time we traded intraday above that level for two weeks.

that's what traders are paying close attention to back to you. >> thank you very much, sir. the latest "star wars" movie hits theaters next week. lots of people talking about it. the buzz building. our next guest hopes for a death star sized boost at the box office

i'm here to talk to you about how at&t gives you more. and so am i. like how when you buy the amazing new iphone 8 you get another one on us. see we give you more phones and more spokespeople.

are you guys doing a spokesperson thing right now? yes. awesome, can i be in it? well, it's kind of like a two-phone deal. so two spokespeople. got it. k. thanks. at&t it's time for more. it's time for more. buy the amazing iphone 8 at at&t and get a second one to gift, on us. welcome back to "power lunch. i'm josh lipton. some news just breaking on high profile venture capitalist we had reports of multiple women who say pishovar had sexually harassed or assaulted him. he called it a smear campaign but he is now saying he's going

to take a leave of absence from sherpa capital and virgin hyper loop one, saying this is a decision i came to and proposed on my own accord it is not one i took lightly and it was a difficult decision that was guided by our abiding belief in service and putting others before ourselves i care deeply about the incredible teams and our portfolio companies and virgin hyper loop one and hope my decision to take a leave of absence will eliminate any potential distraction to the great and important work being done at these companies. certainly we see a lot more pressure building on him we had reports of two democratic senators, kamela harris and cory booker, giving money they got from him to charities. we will stay on this story bran bring you more headlines as they come doing tomorrow -10am? doing tomorrow -10am? staff meeting. noon? eating. 3:45? uh, compliance training. 6:30? sam's baseball practice. 8:30?

tai chi. yeah, so sounds relaxing. alright, 9:53? i usually make their lunches then, and i have a little vegan so wow, you are busy. wouldn't it be great if you had investments that worked as hard as you do? yeah. introducing essential portfolios. the automated investing solution that lets you focus on your life.

it is a monthly prescription plan the plan offers rewards like free tickets and discounted rates for members. will incentives like this

bringing in larger crowds. joining us now is the ceo of cinemark it is good to have you with us, tell us how this program will work and why do you think it will mark zoradi. >> movie clubs have been in the works for us most of this year we are excited about it. we researched a lot of consumers and talked to consumers what they would like most in a subscription program what consumers said is they wanted good values and ability of whatever tickets they would get each and every month to roll over consumers would get tickets a month and don't use it to roll over consumers don't go to the theaters alone and like to have the ability to have companions it is just really key to do those kinds of things and in addition to that, you are

allowed to purchase tickets in advance to reserve seats with no online booking fee to attract consumers and if you come and you are apart of the movie club, you get a 20% discount >> it is a pretty good voucher for consumers. >> let me make sure i understood you clearly. for $8.99, i get the discount and another rate of 99 i get one movie admission per month for that >> that's correct. >> there is movie pass was unlimited. >> do i understand that correctly. >> brand ex if i want to call it that >> i believe it is one movie a day if you chooseto come that much >> got it. their business model relies on whoever shows up yours is a little different than that because you control the seats where they don't this is part of the cinemark

brand. when we talk to consumers, i mean there are some consumers that wanted an unlimited brand there is much bigger groups that come forward each time of the year, our goal is to get those people coming four to six times to come five or eight times a year if you don't use it during the month, it rolls over for you so you can have two or three credits and you can bring family and friends with you and everybody can get into the mo e movies effectively for free because you prepaid for that on a monthly basis. those tickets never expires for you. >> so there is nothing i want to see in january but there are two movies toii want to see in february meantime, i am paying my what is the monthly subscription $8.99 a month, correct >> that's correct. >> i am paying $8.99 a year to receive my one ticket a month

which is rollable. >> that's correct. so consumers look at that and i just save a buck and a half and maybe i will save another $2 with 20% off quickly they start to see the $9 feels like $5 or $6. >> how many more butts is that going to put at seats? > >> it is going to be very big. do you have any idea and on eight movie theaters, would you take all eight at "star wars"? how is it going to work? we'll have plenty of screens and plenty of tickets and plenty of seats that's going to go on our auditoriums. this is going to be without questions of the biggest movie of the year and it is going to reinvigorate the movie experience we have done improvements with

new recline seats and expansive of food and drinks and the ability to get a glass of wine with it and people are going to go back and say wow, this is a much different experience than i remember >> thank you mark, i appreciate it and good luck with the program. the house in the nasenate ae hammering out their tax plans. we'll talk about that. general motors taking in car ordering and harassment in the workplace. all that and more as the second our of "power lunch" begins on the other side of this break (news anchor) downtown traffic is still bad. expect massive delays. (radio channel changing) (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year.

for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier.

what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges that cities face around the world. who knew asphalt could help save the environment? (lani) and the possibilities are endless.

welcome everybody, the second hour of "power lunch. i am tyler mathis. we'll break out the cost of this crisis and wayne's coffee and pancakes on the go. gms taking in-car ordering to a whole new level. buckle up because "power lunch"

starts right now >> soon we won't have to walk or know anything. it is going to be amazing. no record highs today. the dow is 20 points right now technology rebounding a bit, the d nasdaq is in the green some of the top tech performers of the big name you know, facebook and amazon and alphabet, netflix is out 1%. retail is red hot lately you can see in the reds and macy's and nordstrom, target foot locker and spdrs & p retail is the worst on record mcdonald's of some of the good performers

it is getting an upgrade today and we'll speak to the analyst who did the upgrading, coming up, taylor >> all right, the tax reform bills heading to the committee there are some differences must now be reconciled before the whole package would be signed into law ylan mui is live for us. >> these are the lawmakers that'll be responsible for negotiating the final details of the bill you can really see where republicans priorities are by who they picked. of course, there is ways and means committee of chairman brady there and there is also kristine noem. the house version does get rid of the estate tax after six years and the senate version keeps it in saying black of the budget committee is another

person on the conference kmi committee. she's concerned of the $1.5 trillion price tag of this bill under senate rules, it cannot add deficits there is kevin nunez, oa republican of california lawmakers is increasing $10,000 reduction of property taxes. the senate has yet to pick its members. vice president mike pence was at the capitol today having lunch with the republican senators should be wrapping up soon if it has not already. guys, the clock is ticking before republicans getting this done before christmas. >> we are watching ylan, thank you. >> local taxes are pushing back against the tax reform bill. take a look at the headline of

the new york times quote, "tax bill posting economic woe in new york region." how big of a hit would it be on blue states? >> lets bring in our senior contributor, larry kudlow, gentlemen, it is good to have you here i am guessing you are worried as are a lot of constituents in new jersey everybody is saying this is going to be an assault on new jersey and another nail in our coff coffin, we cannot afford this attack in jersey and they are eliminating this whole thing on our backs is completely unacceptable >> have you done any estimates of any analysis and what percentage of the people living in new jersey now detukt their state and local taxes and once all the changes go into effect how many of your constituents would be affected? >> what percentage >> it is about 60% currently

it goes down a little bit of the standard deduction but not much. >> we know in new jersey, their taxes will go up $5,000 in the first two years. that's a couple living together in new jersey. that's how big of an impact it will have on people. >> i am al new jersey resident and has is tyler i want to bring in larry in a second here. i want to continue on this, i had this discussion with a friend of mine and his other concern is not only the stuff that you and i are talking about and a lot of people's home values have not been reassessed in a number of years and nobody is going to have the idea to reassess the homes because they don't know what the actual impact will be and there is a fear that if there is over dawning the assessment down, you can see a lot of people who are now again under water on their mortgage

what can you do about it >> these are something that people are calling on office off the hook on. they think property values going down 15% or 20%. bringing in less and having less at the end of the year and your property tax because you cannot deduct them. >> they should go down if your assessment is lower, right >> but you still have the same obligations. >> so this is new jersey we are talking about. >> i have gotten through a reevaluatiran reevaluation up on my house. if there is a reduction and value of my home, i am going to be at a higher rate. >> you are going to get a huge housing mortgage deductions. last i heard, i don't know if it is moving around, you are going to get up to a million dollars, if you have a loan of a million

dollars that can deduct all the interests. >> that's very -- that's a home that you already owned and not a new thing. >> well, that's the same as it is now, larry. >> well, good. >> we don't know if it will move we don't know the defining details. >> all right, listen, i am sympathetic to this. i am from the metropolitan area and a lot of good republicans are friends of mine, and you know these guys. they're up in arms, i get that i want to add a couple of things here with the greatest respect you are a high taxed state i just looked up at the ratings, new jersey is in total of 50 out of 50 states of property taxes and 50 out of 50 states in property taxes, out of control >> got to be cut >> and right, after the senate bill passed, lets see themr.

sweeney, he made an important point because we lose this deduction or part of this, we have to start raising taxes. >> yes, i believe with that. >> we are on the same pace then. this could have been done elegantly if we have lowered much more and lowering the personal tax rate which is really true of tax reform. and middle income people gets 3% point reduction. that's not a lot help comes to those who help themselves, congressman. >> he's saying new jersey should cut taxes and therefore, you are not going to have many people move i think taxes are too high that's the whole point the problem is this is a tax hike on new jersey my other problem of your point of new jersey verses other states, for every dollar we s d

send, we get back 30 cents you look at mississippi, they're getting back $4. >> i get that. and that's important point i don't know if that's the point on this. i mean after all, you can send fewer dollars by having lower tax rates, you know, new jersey has record shares and methdicaid and thing of as of all that. you have to pay for it you merceday disagree with this. i think this tax plan, and the business side, josh, i think you will see an investment and business boom. >> i hope so >> i hope so >> i know you are sympathetic. i want corporate tax deductions is great i don't want new jersey to pay for the whole thing. >> it is a tough one

i am not unsympathetic to this that was the reagan model that sponsored heavily from democrats. an investment boom is helping a lot of people. >> yes, but they have to pick jersey the tax sight my fear is, they're going to go elsewhere so what you are doing is picking other states and saying new jersey too bad for you >> i understand it was of the idea >> i don't feel picked on but i talked to people on capitol hill that wrote the bill, they want to get people to move to the red states that's the genius of this deal >> but, see the problem is -- we a is -- we -- >> we are down this rabbit hole.

why not phase it in so the person that's paying $60,000 in new jersey income tax, that's a lot of affluent people in this area do. why not reduce the amount that you can deduct every year so that it does not all hit in year one and while property values and -- cash flow, exactly. >> if we can figure out the numbers, i am okay with that >> well, it blows a hole >> not on specifically to get a couple of big states sorry, you got a lot of republican house members, josh's colleagues from new york and new jersey you got a lot of republicans from california and you can lose 20 or 25 seats they know this you maybe right, you can phase

it in. at some point, you may have to give up on this. you guys are getting the bulk of benefits and stop raising tactictactic taxes. >> larry, i love you but -- >> we get back 30 cents on the dollar they're getting the benefit, we are paying for it. >> can i tell you when i was little, we lived in massachusetts and at the time, they called it tax-sachusetts and people started moving and you know what massachusetts did? lowered taxes. >> this will be the best way >> yes >> can i say one thing >> the congressman from new jersey, we are both members of the caucus put out a plan to save the state level tax reduction and doing it in a way that's responsible. >> we need to consider

everything again before they put the hammer down and send people and kill property values >> by the way, josh, i read your release, i got to give you a lot of credit. you want to keep the corporate tax rate at 20% and you want to keep the small business deductions at 23%. >> if i had a hat on, i lifted to you, i think that's great policy we may call this - >> last word representatives >> congressman, here is the thing. we are not always going to see eye to eye one thing i will say is i appreciate you representing the state federally this way i agree everything that larry just said. congressman gottheimer had nothing to do. we got to get folks who are hiding under rocks right now >> josh, i would like to have a cup of coffee with you

you sound like you are a pro-growth democrat. >> yes, any time there is some of us left that are physically responsible >> kennedy was a progrowth democrat and bradley for '86 i would really like to have a cup of coffee. >> i would like to see people comiing together to get things done >> thank you sometimes a few compromise people in 49 other states, well, who the heck cares >> winers och >> we'll get on another recent rally will help stock the holiday stockings. and the changes would ease regulations. raise the glass, one restaurant chain will sue much ordoon orded

deliver your houses to pizzas. enerteags everywhere we'll be back on "power lunch. brian sul vlan sullivan most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation.

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the company is upgrading now, and hitting an all time

highs today. investor, lets bring in our analyst at jefrries & co, andy barish >> with a number of drivers and in place and secondly, the financial rh financial reengineering to a more franchise business model that's going to show through in terms of some operating margins and expansion and more free cash flow over the next few years >> a lot of the stuff that you wrote in your notice called mechanical a lot of balance sheet stuff are they doing it right on the

food size, andy food side? >> yeah, i think they are. mcdonald's has moved and they have done pretty good job on back to basics with core products and improvements in ingredients and we'll see more of that in terms of 2018 of fresh beef coming to their quarter pounder and signature crafted burgers and a big value push to reestablish some leadership, maybe in value that some other players in the category have led on over the last couple of years i do think the back to basics including food and products, butter milk chicken tenders their and fourth quarter seems to work as well. >> andy barish on mcdonald's, thank you for having you on. >> thank you >> what could this mean for the

sector, kayla tausche is joining us now >> banks under $10 billion in assets would get exempt from the local rules. banks of less than $250 billion asset would no longer need to comply with too big to fail banks. >> it would be fazed in for banks between 100 and $250 billion the committee is in the process of working through some 100th amendment of the bill. senator elizabeth warren offering amendment restricting what that money could be used for. even so the package itself represents a stroke, a rare stroke, bipartisan ship for democrats help negotiating a bill with republican chair meek

cre creppo brian. >> all right, kayla, thank you very much. bank of america's ceo is sitting down for an exclusive interview with wilbur ross earlier. wilbur is joining us live with more, wilfried >> thank you very much >> so the ceo of bank of america was up bebeat of the current report >> the year before, those numbers have been on five and moving up a percent and three on cash

>> so that's doubled >> that's $2.4 trillion in spending so that doubling means that things are going on in the economy which is good. and so consumers in good shape >> also, he addressed the impact of tax reform on the economy >> american did a couple of things one is the corporate tax rate and that's in the bill and second is the territorial system and people can operate the global economy and all the other systems that's operating and that's good for corporate america and good for market companies and good for small companies and that's enthusiasm. >> meantime, black stone gem steve schwarzman addressing on this >> this is a whopper there is no doubt about it in

terms of its impact scale and the fact that many people thought that this would not work and it seems that at this point, a pretty good shot that this is going to get resolved before christmas. >> more from the goldman sachs financial conference comiing up at closing bell. hitting the brakes on tesla. why one analyst says this stock is getting stet for an out turn. >> how about this, san francisco, tokyo in less than six hours. we'll tell you the company that's making that a flying reality. for your heart...

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time now for "street talk. >> first stock is snap 2018 is going to be a turning point for the company, given the firm upgraded blue apron yesterday. analysts admit they have been on the sideline until now

barkley barclays ups to over weight. >> all right, stock number two, tesla, listen up everybody, it is downgrading into a sale new customers who have not preorred have preo pre- pre-ordered in two years the tax credit that everybody lov loves, goes away it is 18% lower than tesla's lowest price >> the out performering big box retailer, right now it is at 188. compa company's recent sales have been

nothing short. ramon james goes onto say cost business models should remain in tax and we'll continue to deliver healthy growth >> today, bluebird, no, it is not twitter. can canaccord says buy it could eventually considering an alternative or to stem cell transplan transplants. not everybody agrees with this >> "street talk" flying off. pizza announced it has

started doing beer delivery. >> what's to test? >> customers can order bud light or local craft beers drivers will check id making sure the buyers are over 21. it will be separated from the warmth pizza >> delivery will be available in january. tl compa the company hopes to expand alcohol delivery to other markets next year. >> you wonderwhat took so long >> what's the number >> all right, lets go to sue herrera, cnbc news update. >> todd, thank you very much heavy winds in southern california fuelling an explosive

wildfires. the blaze is has ruined a 70 square miles and it is moving at fast winds >> our fuel conditions out there are absolutely as bad as it can be for fire spreads. we are concerned of the wind popping up again today and pushing it further towards the west >> the international olympic committee has banned russia's olympic committee after the prolong doping scandal russia was involved in. some russian athletes will be allowed to compete under russia. twitter released its top trending people in topics of 2017 the number one retweeted tweet came from carter wilkinson who begged people to retweet him so he can get a year free nuggets of wendy's and coming in second

is president obama and president trump takes topic for the world's most tweeted have you gotten your holiday shopping done? if you have not, we have luxury good for the billionaire who has everything >> gm will let you order food from your car with just a push of a button. you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years.

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time now for our power run down for phil lebeau phil, how do they make it safe snoo >> it is offered for 2000 models lets say a starbucks in the area or there is a dunkin' donut as

well, usually, you have your previous order in there. whatever it maybe, you pick up your order and guys, i think we are going to see more of this from other automakers as well. they're trying to bring more of automation and ordering into the car. >> i assume it is disabled when the car is moving. >> no, it will limit distractions they're not going to let you scroll through the menu. >> what i am looking at is somebody making reservations at tgif's friday. i understand what you are saying you will voice activation in there as well. they are well aware how bad this

looks everybody going down the street, hold on, i got to get it >> maybe my date could do it, that would be my wife. >> yes >> lets table this for now >> lets lets table this. >> lets bring it backup. and keeping the conversation going. lets move on tyler's wife likes dates airlines are flying high this year, a new report says they could keep the good times rolling. >> globally, airlines are going to bring in $38 billion of the estimate of the strategies, airline trade associations, they are saying hey, you got the mandate that's up 5% or 7% around the world, the economy is generally speaking and growing and all the major market around the world, and the revenue is a big part of this the airlines here in the united states are going to be collecting a report amount profits are up at a record

level. >> i feel really ancillary every time i go on an airplane and i am ancillary to death. >> then don't pay them >> you want these guys to tell you or they all go brupankrupt. >> this is what i that are doing. >> there is actually the don't pay fee fees >> is that right >> what i mean by that is there is a flat fee where i saw in united where i can get a plus. >> finally, lets move onto soupr sonic traffic. can be see a flight that goes from san francisco and to tokyo. >> they are working to developing a super sonic plane there is a number of years for this happening. . that may happen until the end of

this year. japan airlines is investing $0 million to help them of the dwromt develop of this plan >> guys, you have light materials and advance engines which are fuel efficient than in the past that's why boom super sonic believes we'll see these planes flying again perhaps 2023. >> it is not the technology, it is always possible but not profitable cranston has been wanting to bring it back to the concord forever. you are saying if the planes are lighter and they'll use less fuel fuels. >> they'll be comfortable. >> i never had one person say oh, it was a beautiful smooth flight >> everybody says it was loud

and jerky. >> yeah, but it was not a smooth experience >> do you want to be a sad person and one who used to fly in contort cord and cannot anywhe anymore. >> it is a bunch of rich gnomes. >> it was that small >> london in three hours you will duck to get into flight >> not me. >> phil, thank you >> you bet >>. breaking news on capitol hill sit back for eylan mui they were just representing the door way he's the rev activity by pennsylvania >> and her democrats is just

more than antibiotic the tax fl flow, this is about healthcare and social service and funding they are fighting this hard to fight their energy to block the owe pethe appeal >> you can hear them chant behind me. we saw several people getting arrested as well there is a woman who was top less blocking the door way to the congressman office guys, we are following with this and get back to you with more. >> i was going to ask, what are they challenging >> i can barely here you side. >> they were chanting kill the bill tom tell low acostello or demonstrators noouf and there is about 300 people expected today.

they they don't have the final law yet. >> what they think is the final bill >> that's the point tyler, they're trying to stop it before it becomes a law >> eylan, thank you very much, the cause of harassments go way beyond the million dollars payoff >> plus, one stock had been on fire this year erisoucht.rection of territory, the nr ar can y can you guess the stocks >> let us know, more "power lunch" ahead

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well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate.

the earnings tool from td ameritrade. welcome back, a quick note of an daddendum, mark cuban jus said he's 6'3" >> i heard that he's tight >> i knew that >> is the statue of limitations -- >> that's cuban being cuban. he can do whatever he wants. >> rising stocks, we'll translate steve liesman to more holiday spending here is the deal >> americans have that wealthy feeling right now and just in time to spend some of it from

the holiday season >> the nasdaq is up $1.7 trillion. over laps a bit and up $3.7 trillion. >> both believing at mucing as 3 quarter, it is the people tend to spend about 5% of every dollar increase in their asset values and a lot of 5%s to go around >> half of those gains coming from equities and michael gave to barclay more. >> here is the flush >> just where the 3% now as portfolio, the value is right, people feel they need to save and they can spend more of the paycheck >> you need real wage of income growth for spending games to be sustained.

we have these recent gaining over the parts of three or four months >> when it comes to holiday shopping, someone heads to mall >> aside from selling $450 leonardo da vinci. >> christie sells more items of $10,000 working bag. chrissy is planning to flan a slew of options with ol day related gifts, everything from handbags and over $150 million luks aoki good and expected to go a lot is on their online digital platform >> they have the largest rounds diamond ever offer that's going to go between 4-6

million dollars. >> here is a berkin bonanza. today as the option ended. >> i want to show you some of the highlights, this is a hym a -- this is the travel clock from amiemiliar aiearnhardt. >> the wealth affect have affected the people. the auction, some of these bags are going for two to three times their estimate we can start with the berkin in

state of texas showing this income how it bm did they show any appreciation of spur value? >> it is a multiple of the argearg original price >> and something like this, you cannot get one these bags are selling two or three or five times of which they are sold more >> filling in with bitcoin >> you can carry stuff when you are working but not with your bit coin >> well, now it is time for trading nation lets take a look at the history chart. you are way martyr than we are >> off more man 20% is a heck of a year a chaps to goal global rick ross, i will start with you in a chart.

>> it is just as the short term drop it or reversal or is it going to o go hoer and lower >> lets bring up the chart and i will show you what i spercializ. there is the power ball pull back that you see over the recent past weeks or so. you are sitting right of the 50 day moving average the 50 day has worked every time every the past 15 months you can see rsi is over sold as it has been at prior trough. >> when you zoom out, you live longer term and of course, the stocks have not been arnds all that long. there is the 10 feet coming around 50 days and it provides similar report yes, square is the stock that you want to buy on the 27% pull back >> there is no fre lunch the stock is up 25% the last 18

months >> sanchez, what do you think? >> well, part of the story is fuelled lie -- into now, that is a positive story, and i think that that fundamentally could continue however, you should watch the tax bill because the tax bill should benefit these small and mid-sized businesses, therefore, you could see that translate into continued growth. the valuation on square is massive, trading at more than double its main competitor, which is paypal. i think it's priced to perfection anything could go wrong, whether it's bitcoin, taxes, i think the economy, however, is on strong footing. so that story remains. >> okay. gina, rich, thank you very much. appreciate it. for more "trading nation" go to tradingnation.cnbc.com. all right. a series of high-profile resignations and firings

continue to rock the business, the entertainment, media land scape. straight ahead, we'll tell you about the cost, harassment >> and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> a good first step of any risk management strategy is to determine the amount you're willing to risk on any given trade. some traders use the 2% rule, where they try and limit their loss on any given position to no more than 2% of their total trading capital.

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it's an easier way to reach your life goals sooner. we've helped over 195,000 people. we want to help you too. find out how much you can save in just two minutes at sofi.com/save the recent wave of sexual harassments claims 4 s hitting parts of the media business, racking up tens of millions of dollars in costs, investors as they look to avoid high-cost risks. julia boorstin is in los angeles with the look at the financial fallout. julia? >> investors and portfolio managers are increasely looking at the risk of sexual harassment and on the flip side the value of investing in more diverse management teams the growing trend of what's called gender lens investing, taking into consideration whether companies help women advance in the workplace, affected nearly $400 billion in institutional investor assets. according to the forum for sustainable and responsible investment 2016 trend report

calvert research management, which focuses on responsible investing, tells us the wave of headlines is making the firm look even more carefully at companies' performance on diversity. now, take fox, a number of analysts have pointed to the risk posed by its $90 million in sexual harassment settlements and its management overhaul in the wake of those. ctw, investor to union pension funds, has been pressuring fox to review its practices. citing, quote, mounting costs tied to fox's sexual harassment crisis now in focus, is how investing in more diverse companies cannot only mitigate some of these risks but can also yield higher returns. morgan stanley study finding gender-diverse tech companies returned 5.4% more annually than their less diverse peers s&p says it actively engaging more women in the workforce will add 5% to 10% to nominal gdp in

just a few decades guys, back over to you. >> all right, thank you very much, julia. when you look at some of teahese guys, mostly guys at this point, right, who have gone down, you wonder why it was allowed for so long, part of it was because they made their companies a lot of money and so if you're a manager, you're incentivized to pay somebody off, do the whole thing. to julia's point, at some point the cost get so high, it wasn't worth doing all those things. >> at some point -- i think julia, one of the main points there is more diverse companies with more diverse management structures, more diverse boards tend to outperform in the marketplace. i'm very interested to learn whether that diversity really translates into fewer cases of sexual harassment. i don't know >> and i don't think it's a slam dunk, but it's obvious the answer would be yes. >> i don't think it is i don't think it is. there may be model -- best in

breed companies where -- >> it happens because -- >> we may find out, i heard your interview with susan this morning, when you di"sd quawk on the street." ceos, the next -- >> "check please" is next. zar: one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.

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alums. he hit me up boone pickens, i'll send you a hat or something no way you're going to win hokies over pokeys see what i did there >> you're right there in his betting parlor level i think you can match him. >> not nice. >> you should just go for it. >> thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody, welcome to the "closing bell" on this afternoon, i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth banks, they're expected to be some of the big winners from the tax bill and now both sides of the aisle of the senate are working on another bill today that could roll back regulations for small and mid-sized firms. we're going do have the latest on that, plus an exclusive interview with the ceo of regional -- i guess it wouldn't be right to call it a regional bank giant that's sort of an oxymoron