acquisition that they closed it. it's geared to infrastructure. that's why i like the infrastructure dialogues are going to continue to reresonate. >> let's do final trades >> zayo, z-a-y-o, brought it today. >> josh? >> google, still wrong. >> we didn't coordinate on this. google, still long. >> isug, domestic russell 3000. >> have a good weekend "power" starts now. ooi'm melissa lee. hiring slows but hiring on the rise despite the weaker than expected data the stock market pushing to new highs again. which stocks will drive the next leg of the rally and is there too much yeuphoria on the street plus fire, fury and fallout. the new book detailing the chaos inside the trump white house, getting a whole blot lot of attn and heat as well what's true, what's not? we'll talk to an insider with firsthand knowledge of what really went down "power lunch" starts right now

all right, america, you're so money and don't even know it, maybe you do because your stock investments hitting record highs yet again. look behind me, all three major indexes higher for a fourth straight day you see, mr. president, somebody is talking asht ining about it. surprise one of the big winners this week, ge, up 6% in the last five kays we're going to chat with an analyst sthat says the beaten u ge could go 50% higher from here check out other movers this hour, cvs health, xilinx, underarmour, up, leading the s&p 500. >> welcome, everybody, i'm tyler mathisen we kick off the day with the jobs report, first of the new year payrolls for december missing the mark the jobless rate hitting a 17-year low. wages rising not blowout pace, but nice steve liesman in philadelphia breaking down the numbers and looking at what it all means for

rate hikes this year steve >> reporter: hey, tyler, thanks. yeah, it was a weaker than expected jobs report, but economists said it didn't really change their view that the jobs market is really pretty strong take a rook at tlook at the nume up 148 looking for 180. a touch underneath the revisions add up to not very much more in november, fewer jobs in october. average hourly rages, tyler, 0.3%, 2 1/2 year over year unemployment rate, 4.1%. unchanged. participation rate, 62.7%. here's the commentary we got "rise in payrolls is much smaller than impleaded by the array of private sector surveys so we're inclined to see this as noise rather than a shift in the trend. abnp they're noting "2017 was the year of softening and hiring and wage growth paired with a steady fall in the unemployment rate, way below the fed's estimate of the longer run equilibrium rate." let's take a look, as melissa

advertised, where the jobs are, construction up 30,000 leisure, hospitality, the same you get the idea, folks. manufacturing, stronger, 25,000. retail, real puzzler, down 20,000 maybe we had more of the retail hiring in november, maybe they're missing some of the hiring what does it all mean for the fed? here are the probabilities, folks, march, 78% is the probability for the first rate hike this year second rate hike, running august a little earlier than it orange fally priced in. now at 53% december, 39%. a little bit ambiguous about that third rate hike this year the unchanged unemployment rate gives the fed time to worry about what happens if it sinks into the low 3s or mid 3s. concern is it could mean more rate hikes than the 2 1/2 priced in if we get the unemployment rates down to the 3%, 3.5% range. i'm going to be asking loretta midwest mester in the 3:00 hour as we

broadcast from the annual meeting where there are, tyler, more than 13,000 people here who call or will call themselves economists. >> sounds like a wild party, steve, thank you >> it does. >> even the weaker than expected jobs report could not take the air out of the rally is that a bad thing? bob pisani is at the new york stock exchange with that bob? >> reporter: hello, melissa. take a look at the s&p 500 we're up why? back the report was so strong, not so strong it would raise tremendous concerns the fed might get more aggressive raising rates that's a big issue here. let's take a look at what the risks are to the market right now. we were talking yesterday and throughout the morning there's some signs euphoria is returning. early signs are there. economic data well above expectations and could affect things for the fed going forward. that's why it's important today that the number was not that strong and the earnings guidance, well, it's coming next week with the banks. they're expecting a lot. not just the beat on earnings. a few pennies.

investors want buybacks, want capital expendtuitures raised. what about the euphoria signs? at aiii investor sentiment watches the highest level in seven years, bullish, nearly 60% are bullish. they think stocks are going to be higher. the head of one of the founders of technical analysis said he's so bullish yesterday, i have to sit down these are small things but you want to keep an eye on this, see if it gets too much out of control. one of the things, we're in unchartered territory. look at everything in the first few days of the year everything is up, big caps like the s&p are up, small caps like the russell are up, growth is up, value is up. cyclicals like industrial. the whole market has risen except the interest-rate sensitive sector we're starting to see some outflows in the u.s. funds domestic equity funds, our first numbers for the years on fund flows, seeing outflows that's understandable, outside of it, emerging markets as well as europe, are seeing more

opportunities. stocks are cheaper i would expect some flows out of the united states. here's some of the stocks we've seen, sectors we've seen outflows this week power shares and the russell 2000 as well guys, back to you. >> all right, bob, thank you very much. if this rally keeps going and the dow keeps motoring toward what the president said the next milestone should be, 30,000, which stocks might take it there? dominic chu has that angle for us dom? >> all right, tyler, as we talk about what we can expect o ut o these dow stocks the dow is a price-weighted index, means the stocks with the highest share prices like boeing could end up contributing the most if they have big gains so, take a look at some of this because we looked at the numbers and fact set an sad said what t average target prices for all 30 stocks in the dow? we extrapolated what the price movements and targets could be in terms of dow points so here's how things stand up. mcdonald's, the average analyst target price right now currently within fact set, 4%, that's on

average, target price analysts think it will go up by that would add 50 points to the dow if it were to happen merck, pharmaceutical joint, 13% potential upside stock if the 13%s come in, it's 52 points visa, 9% to the upside that's 70 points there as well also, united health, 18% upside there. 123-point gain apple with 19% potential upside would add 129 points and melissa, just to kind of give you an anecdotal bit of this, if boeing were to add a hypothetical 20%, it would hypothetically add 400 point to the dow. back over to you. >> wow, thank you very much, dom chu. speaking of boeing let's get to phil lebeau for a market flash. >> dow jones out with a source citing sources, boeing and embraer essentially according to the dow jones report agreed to a price of about $28 a share well, there are reports out today that the two companies have yet to figure out a way to overcome government resistance there was also a quote today from a government official in

brazil saying that they are unwilling to give up control of embreaer, that's the reason why shares of embraer are falling today. the stock, if this deal was going to be go through, it might be up in the $27, $28 range. if the government is resistant to giving up control of embraer, or having some type of a golden chair so boeing does essentially own embraer, you're going to see shares of embraer come back and that's what we're seeing, again, the government official that has been quoted both in dow jones as well as "financial times" saying, look, we still see the government should maintain some control of embraer again, negotiations are going on this is not finalized. this doesn't mean the deal is dead but this is an indication that there is resistance in brazil to an outright sale of embraer to boeing >> phil lebeau, phil, thank you very much. i'm sure we'll get more on that as the day goes on. if can you spend time on

many parts of the internet or read certain headlines you might think the world is coming to an imminent end and the country is suffering bigly. if you focus on the numbers, job growth, earnings, the stock market, things don't look nearly as grim, in fact, they look pretty good. so, why has the stock market been able to pull a taylor swift and shake it all off let's welcome in chris, chief investment officer with inde independent adviser alliance and mark, president of intrepid capital management mark, i imagine you get this question all the time, which is north korea, russia, investigation, now this book, yet the market continues to move higher how come >> we know, first off, honor of "power lunch," brian, i want to say let the big dog eat. we got the national title game in atlanta 8:00 on monday. i want you to forget about that. >> you're going to lose by 11. let's move on. >> at least. >> i'll take 11 right now. so, anyway, you know, i think that we've lowered corporate tax rates. you know, higher ebitda at the

same equals a higher price low volatility, a lot of momentum you talk about things that make me wonder, i mean, bitcoin becobein up 7,000% makes me wonder, reminiscent to me of the last quarter of the boom in the tech bubble which was the first quarter of 2000. >> that has nothing to do with the markets, though, does it bitcoin has nothing -- first of all, it's a tiny portion in terms of the assets compared to the market, not a lot of overlap, who owns bitcoin, who owns the market. there's not very much institutional own rership of bitcoin if at all. even if bitcoin collapses into the dust, would that have an impact >> if you read the letters, full-page ads in the "wall street journal," why his brokerage firm won't trade it, you might reconsider i mean, you got companies renaming themselves something blockchain and watching their share prices soar. so, i do think there's a pretty

rampant speculation related to that, you know, currency or store value. nonetheless, i think we're in a very benign environment. we've got a more business-friendly administration in the trump administration. even though we might have the perfect, you know, spokesperson for the country. and i think american businessowners feel better >> yeah, and that's -- that's -- chris, i guess, you know, this morning on "morning joe" joe scarborough called it the ring around the collarmarket becaus it won't go away it's 87 months, whatever it is, of job growth, we've had this market why do you think that skocorpor america and stock investors are able to shrug off all these headlines which seem to dominate us every day is there d.c. then the rest of the country? >> well, you know, i think all those headlines, a lot of that's just noise really as stock investors what you're looking at is corporate earnings, you're looking at how the economy is doing, and all things seem to be going really well you look at the global

synchronized recovery around the world, economies across the globe are doing really well. united states is doing well. along with them. and because of that, you're seeing corporate earnings growth really expand. and last year was a story of corporate earnings growth, double-digit growth quarter after quarter. that's why the stock market's higher as long as you focus on the positives on those fundamentals, i think you have a reason to say the stock market is where it should be right now. >> you know, chris, let me follow up on by asking you if you lhad po pinpoint one thing, one item, one measure, one metric, that would tell you the market was getting tippy, what would it be? i'm just looking for something that can help investors understand when the market might start -- what would it be that would concern you? >> well, for me, i think, you know, we can have pullbacks at any point in time. look at valuation from a pullback point of view as far as staying invested to the end of this bull market, i think you want to look for where the next recession is going to come unless we have a recession, this

market is going to keep going higher even if there's pullbacks. so, to me, the yield curve is where you look if you see an inverted yield curve, that's typically a sign that we may be heading into a recession. it's really the next recession that worries me most more than anything else that we're talk bing about and that's at the time i would get a lot more defensive in my ek it t equity positions >> chris, mark, we're going to wrap it up mark, before the dog found copoe at me i won't say 11 i'm rooting for the dogs -- zblou ar >> you are >> i got you down for 11 >> mark, chris, thank you very much. >> bombshell book on president trump dropping this morning, despite the president's lawyers' efforts to block it. eamon javers at the white house with the latest on this ongoing saga eamon? >> reporter: yeah, tyler, the fallout from that bombshell continues here in washington, d.c. last night, folks were bllined p at local bookstores at midnight to get copies of the michael wolff book he's going to do very well

probably in sales on that. the president tweeting today his comments about it, he says, "well now that collusion with russia is proving to be a total hoax, and the only collusion is with hillary clinton and the fbi/russia, the fake news media mainstream andthis phony new book are hitting out at every new front imaginable they should try winning an election sad! the president also gloating a little bit about steve bannon losing his major source of funding from the billionaire mercer family saying "the mercer family recently dumped the leaker known as sloppy steve bannon smart. wants to create nicknames for his political enemies. clear bannon is in that camp meanwhile, a couple other development to put you up do speed on, nbc news now reporting an investigation by the fbi into the clinton foundation has been ongoing for some months now. it's not exactly clear whating . the confirmation coming from nbc news also the "washington post" reporting within the last few

moments the nsa director michael rogers is expected to retire at some point this spring they expect a confirmation for a successor to come at some point in the coming weeks and mosnths guys, back over to you. >> eamon javers at the white house. jackie deangelis at the desk with the numbers. >> oil drilling rigs in the u.s. down five this week, that's 742. it's up 213 from a year ago. now, we've been seeing small additions for many weeks now as oil prices rose, it was more attractive to pump this week's reduction is interesting, might be suggesting a slight pullback to not oversaturate the market. u.s. production matters to supply and demand. this week it was up again to over 9.7 million barrels a day prices as you can see a little bit lower on the session the session low over $61 back to you. >> jackie, thank you jackie deangelis. president trump blasting a new book calling it phony. coming up we'll talk to a woman who was present for a key part of it and get her take on what's true and what's not. and are cracks starting to form in football's tightest team we'll talk to the author of a

new article about bill belichick and tom brady. general electric, have you seen this? up 6% so far this year is it the start of a rebound or just a good few days "power lunch" will be right back ion? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

2017 was a rough year for ge, putting it politely. the stock closed the year down more than 40%. the company undergoing a lot of restructuring, got a new ceo, cut its deaf ten dividend up 7% so far our next guest is bullish on the stock saying it's going higher

from here. in fact, he says it's going much, much higher. let's bring in scott davis, scott, great to have you with us. >> glad to be here, thank you. >> do we know what ge's business is going to look like in ten months >> no. no >> so then what makes you think it's going to go higher? how can you actually put a valuation on a company you don't know how it's going to look? >> that's why it's an $18 stock. the visibility is low but the underlying assets is great you have an aerospace asset, alone, worth two-thirds of the market cap health care asset that's worth probably $60 billion add those together and get $160 which is where the market cap is, now, $160 billion. so that's 40% of the revenues of the company. another 60% of the revenues of the company to provide upside. >> so you think it should trade on some of ta sum of the parts s and -- >> yeah, when these things get broken you have to peel back the layer and look at the assets and say what is here what's it worth? and what -- you know, what's the

revenue base, what can we actually earn out of this thing? we still think it's a good company with good assets it's had a terrible year. >> what should they keep, what should they sell >> well, you know, you can make an argument that health care doesn't really fit in the portfolio anymore. no synergies the power business probably doesn't have the growth profile they want long term, i think you can make a pretty strong argument that business gets parsed out over time. >> you keep locomotives and keep airplanes -- >> you may end up with aerospace at the end of the day. i mean, it's really -- it's the lions share of the company now. >> you turn into rockwell collins. >> yeah. i mean, it's -- well, or boeing. and boeing trades at a pretty darn good multiple. >> so what kind of multiple do you put on ge? right now the estimate is for looks like consensus is $1.04 for this year. so actually right now it's trading a little bit more expensively than what it should be trading at given the estimates for this year. do you think estimates if your estimation should actually -- will actually rise this year or

fall >> 12 bhont months ago we were g about -- i think there's $ 1.50, $1.55. the dollar is a trough number. i don't think you can really value it you know, as if it's -- that's a steady state earnings number >> how you sum up the immelt years? was he colossally stricken with bad timing or something different? >> colossally overpaid for bad timing no, he had 15 years to turn around this company, you know, 75%, 80% of the acquisitions he made were money losers you know, we get a net return on the acquisitions that he made of below zero sold assets at the bottom. bought things at the peak. that's really the -- >> yeah. i mean, i guess one could make the argument, let me try this out on you, that you see a conglomerate in which pieces don't have a lot of sort of thematic synergy but, to me, general electric, i'm not a defender of it, don't own it, to me, it is an

infrastructure company >> yeah. >> health care infrastructure, transportation infrastructure, power, water, oil infrastructure that is the theme to me. >> stl yeayeah well, look, if you can manage a port tole you that large, manage the costs, manage the complexity, it works they haven't been able to manage that you have a new ceo, can he manage that? he has time to prove that out. he doesn't have a lot of time. the conglomerate model is antiquated, it doesn't work anymore. so few companies have been able to pull it off even those who have been able to pull it off have been forced to spin off assets. >> why should we have confidence in john flannery >> i don't think -- >> i'm not saying we shouldn't i don't know the man at all, but has there been anything you've seen. >> david faber did the great interview with flannery, a lot of people came away and said it didn't sound like he had answers. >> it's early days his first move was to put ed kbarder er gardner on the board

you don't put him on the board unless you're going to make substantive changes. he fired half the board. there's been fairly meaningful layoffs. he's taking action. >> stock is 18 now, where is it in a year? >> i think in a year it's easy, 22, 23 i think if he can get visibility on a ramp back to the $1.50-ish earnings number, i think it's a high 20 stock again. >> all right, scott, thank you. >> thank you. if you're flying in or out of the northeast today or trying, will you be able to get to where you're going? we're going to bring you the latest on how the airports are doing after the bomb cyclone. plus michael wolff's fiery new book about the trump white house on sale today. but as the administration begins to attack the author, we have one insiderwho says, yeah, the book is true because she was there for some of the key parts that interview coming up

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i got it. we'll just create a shortcut. we'll do anything, seriously anything to help you save. ally. do it right. talking 4th quarter? yes. air travel getting back to normal now, slowly, now that the snow has ended but it will take a while longer phil lebeau live for us in chicago. hi, phil. >> a lot of cancelations and flights that are delayed these are coming to us from flight aware they track all the flights in the country. today more than 1,500 flights have been canceled, most of the cancelations, they happened yesterday. yesterday's when we saw more than 4,300 flights canceled. not surprising to see that boston and new york are the hardest-hit areas. in terms of cancelations in those two cities, look at this, boston logan, 31% of its flights canceled, same at laguardia. jfk is a little bit better even at newark, 1% 4% of flight

canceled schedules are expected to normalize tomorrow er know some people are going to be frustrated saying can't it happen sooner? it takes a while to get aircraft back in place and in addition, there are some windy conditions out there today. as a result, they are restricting the runways that are being used at those airports that's why it's taking a while to bring things up to speed. quickly take a look at shares of jetblue. given its hub in boston, it is the most impacted of all of the airlines with this storm really everybody because of their exposure to new york are impa impacted guys, back to you. >> all right, phil lebeau, thank you, in chicago. the rally on wall street continues today. all the major averages having hit record highs even though the jobs report coming in worse than expectati expectations more on the jobsndhe a t markets, a jam-packed friday edition of "power lunch" continues. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough.

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cnbc news update is sponsored by comcast business. built for business >> hello, everyone, i'm sue herera here's your cnbc news update for this hour. a senior white house official confirming to nbc news that president trump and mitt romney spoke on the phone last night amid speculation romney is looking to make a bid for orrin hatch's soon to be vacated senate seat. fcc chairman pi canceling

his appearance at the electronic show after reportedly receiving death threats, that report is according to recode. the fcc has not confirmed the death threats only to say we, quote, don't comment on security measures or conditicerns, end qe new england patriots responding to a scathing espn report about a power struggle between robert kraft, tom brady and bill belichick in a joint statement the three men call the report unsubstantia unsubstantiated, highly exaggerated or flat-out inaccurate the author of that espn report will be joining "power leverage lunch" later in the show stay tuned. netflix announcing its new talk show called, my guest needs no introduction with david letterman" will launch on the platform as a monthly event starting january 12th. its initial guest list includes george clooney, jay-z, tina fey, howard stern the show's first guest will be the former president, barack obama.

and netflix has been moving higher on that news. that's the news update this hour, guys, i'll send it back to you, ty. >> all right, sue, thank you very much. the pace of hiring slowing just a bit 148,000 jobs added in december less than expected but the unemployment rate remained at 4.1% that is a positive the jobless rate for african-americans dropped to 6.8% the lowest in the 45 years that data have been tracked let's bring in mark, president and ceo of the national urban league and former mayor of new orleans. also ron christie, founder of christy strategies former special assistant to president george w. bush mayor, i guess -- >> hi, ty, happy new yoo ear. >> one would be encouraged by african-american unemployment dropping as low as it has ever been. >> 87 months of continuous job growth is an outstanding trend and to see the african-american unemployment rate down below 7% where it had been in the 15% range is very good news and it's news of good direction but inside of these numbers,

we've always got to point out one, we still have a lagging labor force participation rate we still have lagging wage growth even though wages are beginning to show -- >> moving up 2.5% i believe. >> and helps the average working person they're going to have more money in their pocket and i applaud the continued trend which began many, many years ago, and remains consistent >> you have to -- you have to like the fact that the gap in unemployment, as brian was pointing out earlier, between caucasians and african-american -- >> is narrowing. >> is narrower than it had been. >> my hope is the last time we saw that close of, if you will, a gap, was probably '99. somewhere along not range. the hope is that it's going to be a continuing trend. >> right. >> and that this gap will continue to narrow. >> all right, ron, i want to get your reactions to this jobs report and what you see in it but as a person who has worked in prior white houses, i want to get your window, your view, on

what it's like in the white house this week. >> well, happy new year, tyler. >> happy new year. >> i can tell you, certainly -- exactly. i can tell you certainly when you have a bomb blast like this book that's just come out, people in the west wing are scurrying. they are watching us they're watching all the different networks they're following the wires. they want to see what the reaction is as it relates to the president. are they gaining ground, are they losing ground how is the president perceived how can they protect the president? i would imagine right now on the second floor of the west wing where the communications shop is, the president's closest advisers are trying to think to themselves, do we put the president out there to address this head-on, do we keep him quiet? do we have a statement that's released, do we go on camera there's a lot going on at 1600 pennsylvania avenue right now, tyler, of how to best spin and position the president on clearly for them something that's very bad news. >> you know, i guess my thought, at least one thought is, with

general kelly as the chief of staff, there is a layer or a level of command and control that was not there on inauguration day and that maybe that governance, internal governance, is a good thing right now. >> it's a great thing right now. we had two excellent chiefs of staff for george w. bush in andy card and josh bolton what that does, it allows the chief of staff to manage the staff, to manage the process to manage the paper. so that the president can focus on his job, which, of course, is governing the country. what you see with general kelly coming in right now, tyler, is very important we had a lack of discipline, we had a lack of, frankly, cohesion with the white house staff that until his arrival, people were really putting themselves in different camps and worried more about my turf and my power rather than what's best for the president. that is something that's very critical as we look at this book and explosive allegations within in, general kelly says, hey,

look, i don't care what's in the book, you were hired by the american people, stay focused and keep to your work. >> the question, what effect the book will have on the ongoing mueller investigation and the ongoing congressional investigations i mean, my thought is that steve bannon bought himself a ticket to the mueller grand jury. how can congress not now take the book, look through the book, and call people who are quoted in the book down to testify, both privately and under oath in public or whether mueller, and you have to -- it's clear now that the book is out wants to speak to bannon, wants to speak to others, wants to see if any of the information in the book -- >> don't you think they probably already intended to speak to bannon >> i think now they almost have to speak to him and the question really becomes, some of the people quoted in the book have already testified in private to the investigators, or to congress does this book reveal any contradictory information? any information, perhaps, these

people may not have been telling the truth? it's explosive the political side of it is one thing, but the legal jeopardy it may place people in, i think, is the bigger question and the story to watch. >> and the story this morning in "the new york times," by the way, which suggested or stated that the president dispatched one of his personal lawyers to try and persuade mr. sessions, the attorney general, not to recuse himself from the russia investigation, is a significant development here ron, quick thought here. one -- one perspective that i have is that we spend so much time paying attention to what the president says that we spend too little time paying attention to the results that have been accrued over the past year traceable to what the administration has done or not, but we're paying too little economic attention to what's happening. >> i couldn't agree with you more if you look at consumer confidence, if you look at business confidence, if you look at the fact that unemployment is at 4.1% or so, if you look at wage growth at 2.5%,

african-american at 6.8%, if you swapped out the name, trump, and you put in a different political figure, say, the name, obama, i think the media would say this is the greatest presidency ever, this has been the greatest year of the first year of a presidency, but just because it's donald trump, i think there's certain people in the media who are focused more on him, what he does, and the record for the past year i think speaks for itself. >> and in fairness, he bridge lot of that onto himself. >> yeah, he does >> mayor morial, go saints. >> go saints all the way to minneapolis. >> they got a shot, man. >> who dat nation. >> let's go. >> let's get to the bond market now. thanks, guys rick santelli is track bing the action at the cme. hi, rick. >> hi, melissa lee look at 24 hours, it tells you about today's data pine point. it was only when the technicians on a friday realized that we're trading higher than we were

trading before that number was re lea released we seem to have a gotten a little action you see there. virtually, virtually, worn shoe this mid 240s, not only this year, but an extent last year. here's some action etf, high yield. it's screaming in 2018 should continue to be a green light for the equity markets and potentially doesn't show any wild curves for the fixed income complex. think foreign exchange here. you know, it snuck up on many. the iuorio vyea euro versus thea a three-year high. euro versus the yen, it's at the highest level since october of 2016 let's look at the pound versus the dollar fascinating chart. on the left was brexit see that big range for the second time, we're getting into it. this is important, this zone if it starts to get some of that ground back, the pound could end up taking a little of that glitter away from the euro with respect to investor sentiment in europe sully, back to you. >> santelli, thank you very

much. all right. coming up, president trump calling the new book about him, you might have heard about it, phony and full of lies up next, we're going to speak with janice min, she was there for the now infamous dinner party. orase going to get her firsthand sty well. "power lunch" will be right back

we've got a news alert out of washington about michael wolff's new book let's head to eamon javers at the white house with more. >> reporter: yeah, brian, that's right, gary cohn through a white house official is denying a quote in the michael wolf book, suggested gary cohn called the president stringomething dumb -h saying he denies the ridiculous quote. calling it ridiculous at the white house. imagine a number of other officials will feel a need to

deny certain quotes that are attributed to them as well we'll be on the lookout for that this book has had dramatic and far-reaching impact in washington, d.c. the president about to leave here for camp david. he will be with gary cohn in camp david over the weekend. there's going to be a legislative session, a brainstorming session. gary cohn will be there along with a bunch of others i talked to gary this morning, said are you going to stay here at the white house he said, yeah, i'm going to be here today and all next week typical gary, very cheerful, upbeat no indication he's leaving any time soon. >> eamon javers. we're figuring out what the word is not hard. >> reporter: keep thinking. >> i'm thinking. thank you. michael wolff for his part defending his explosive account of the chaos in the trump white house. your next guest was one of six guests along with steve bannon and roger ailes who were at a dinner party she says every word from that evening which is detailed in the book is completely accurate. janice min, welcome to "power lunch. >> hi. >> thank you very much for joining us. >> thanks for having me.

>> i saw your sbrinterview on "morning joe." i appreciate you coming on "power leverage. credibility of michael wolff, you worked with, part owner of the publication that largely employs michael wolff, the "hollywood reporter. people are now attacking his credibility. does he need to be defended? >> this is my concern about all of this, is that oftentimes, you know, i would call this the technique, you don't attack the message, you attack the messenger. and this is a famous strategy that roy cone used and trump has used for -- it is, you know, from the time way back when he started using cohn to now the administration i think, i can't speak to any of the specific details because i only know the one from the dinner which are entirely accurate i've seen before, though, where subjects who say things in the comfort of a conversation with the reporter, often regret those things because they take on a life of their own when they're in print

i'm not -- >> but i'm sure you know michael wolff well. >> yes, i know michael incredibly well. >> we've had him on the showmice out there watching, an open invitation forget about the details of the book for a moment. i guess the biggest discrepancy is, you know, michael wolff says he was basically hanging out at the white house for a couple weeks or even more than a month. >> yeah. >> the white house is like, no, not really he was here, but he had no access we talked to people internally even off the record at the white house who said they saw him there many times why would the white house come out and say this >> well, isn't this a repeated pattern of the white house you say blue, they say red i think that -- i think that it's -- there's a -- you know, there's a truth vacuum that goes on where from day one with the size of the inauguration the crowd of the inauguration. that there has been a persistent drum beat of disputing facts

and obviously it's embarrassing that this book came out. and i think, it's also embarrassing that, you know, my god, what is the press apparatus around the white house where a reporter, if you do a simple search on michael wolff on google, you might say, oh, maybe this isn't the guy who should go around without a chaperon in the white house. i don't -- i really -- i can tell you michael wolff was not pulling off an elaborate hoax for the past year. he was seen there. i spoke to him multiple times over the year. when he was in the west wing, i asked him repeatedly what people thought he was doing there and he -- he was, you know, he sort of gave that michael wolff laugh and said, you know what, i don't know, but i'm continuing to take notes. and he said it's going to be incredible and from, you know, from the very first time i talked to him, this might have been two weeks into his time at the white house, i said to him, so, how's it going he said, oh, my god, this is crazier than i ever would have thought. and, obviously, he's a good

report reporter, he kept those feelings to himself as he described it to me, it was a culture of, you know, me, too, not in the current #metoo movement, but a culture of me, too, where people saw people talking to him and all of a sudden everyone else wanted to talk to him or felt they should talk to him. some of it was people, different people in the west wing feeling like they needed to defend their turf everyone grew increasingly paranoid about steve bannon, what steve bannon was saying to michael. and this had this sort of spiraling effect where by the end of the year, michael had access to everybody. >> so, janice, our apologies to anybody who was watching your interview with "morning joe" this morning, many people were not. i'm interested in what happened at that dinner it was a five-hour dinner. you sat between two very fascinating people how did it compare to what was in the book? you say it's 100% accurate. >> yes the details that mike bchael han his book are as i remember them from the dinner and the only

surprising thing to me is how much more michael could have written from that dinner michael could have -- michael could do a whole separate book about the five-hour dinner with bannon and ailes it was unbelievable. when the dinner was done, michael and i, michael's partner, victoria, looked at each other, we were the only ones afterwards, almost in stunned silence at the level of stuff we heard. >> what made it so remarkable, janice, beyond what has been reported >> yeah, it was the casual rapport of everybody at the table. and the willingness for bannon and ailes to sit there and talk about some of the most newsworthy things you can imagine in front of michael wolff and in front of me and just so you know, there was an agreement before the dinner that nothing could be used from that dinner. immediate wi immediately. and after -- and michael -- after the death of roger ailes, roger ailes' widow, elizabeth, gave michael permission to use

information from the dinner and then steve bannon took the record -- took the dinner from off the record to on the record. that's permitting michael to use the information. day we they were in a relaxed, you know, no reporting environment at the type and thime, they lai out what they were going to do for the next three months, who was going to be in the cabinet roger ailes offered to coach people through their testimony for congress it was, i mean, everything it was stunning. >> sounds like a fascinating -- i want to be on the invite list next time, janice. >> right. >> let me peel back, obviously you vouch for the accuracy of the account of the dinner but there are others who have disputed very directly quotes attributed to them >> right. >> gary cohn just in a statement to eamon javers denies calling the president dumb, similarly mr. mnuchin has, similarly tom barrack, his close friend, has said the same thing. put me into an editor's chair

working with michael wolff on a story where some of the things that are presented as direct quotes from another person may not have been said directly to michael wolff but may have been repeated to michael wolff by bef by a third party, roger ailes or steve bannon how do you evaluate those kinds of statements and say okay, that's right gary cohn did call the president dumb ass or whatever >> i just don't know of the specific where michael got the certain bits of information. also, though lets not forget that michael had and he became a piece of furniture at the white house. he was a fly on the wall heard things and heard private

conversations, conversations where people let their guards down because he was a familiar fixture. he went in at the white house signed in and left on thursday no one was his minder. i don't know -- i imagine he over heard some things and maybe things that's regret being said. hs congn peive piece of furniture right now >> janice, thank you very much >> thank you we'll be right back. duncan just protected his family with a $500,000 life insurance policy.

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i love this weekend because there is a lot of football the national championship game, alabama and georgia and both members of the southeast conference is the sec. two sec teams are in the final game in the heart of sec country in atlanta what is the financial benefit to the sec and to its members from having not one but two go this

far? we ha . >> one of the curious aspects of that, there is from a lucrative standpoint financially and other opportunities beyond cfp that benefited us, there is a benefit that agreed upon and close to the conferences and revenue distribution is not enormous from having two teams. it is certainly something that we appreciate. >> do you care to put a number on it? >> give me a ballpark. it is around 6 millions and 8 millions and we reduce to meet the expenses it is not enormous a piece of the revenue sharing up front is larger for the conference >> let me get you to a quick answer, a lot of people believe that college athletes, the elite ones playing basketball or playing at the level of an alabama or a georgia in football

ought to receive some kinds of compensation where do you and the sec stands on the idea of getting people paid for play? >> well, the big picture we have around 8,000 total student athletes and about 5500 of those are on some form of scholarships i have testified in federal court that the benefit drives from an education are significant and participation in college athletics, the financial support ties to that participation should be linked to education, we expanded the value of the athletic scholarships to include the cost of attendance which arranged arrange to 3,000 or $5,000 i know the benefit of 38 young

men wearing graduate pads on monday the lifelong of that education goes beyond any additional stifle >> gregg, thank you very much. i know you will have agreat time in atlanta if you are not already there. you will come out a winner either way >> it will be a remarkable monday last week between the sugar bowl and rose ball wasowl was a remae ooerchi evening for us >> and they can eat chick-fil-a at the stadium which is not opened on a sunday but they can enjoy it >> will it has an impact on the trump's agenda in year two "power lunch" will be right back ♪

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the leesa mattress in your own home. order now and get one hundred dollars off. go to buyleesa.com today. is there still new money coming in from the stock market rally. is this the end of one of the greatest sports dynasty ever reviewing stories inside the new england patriots and the author behind that. more on weed, what does the administration's new policy on

pot means on new businesses. i am brian sullivan, the second half of "power lunch" begins right now. welcome to "power lunch" everybody. it is hour, two. i am tyler mathisen. lets go to the white house right now with president trump >> we'll begin to set, the tax cuts are kicking in far beyond what anyone thought. numerous companies have come out and announced they'll make big payments to their employees, something that nobody had in mind the market is good jobs report were very good and we think they're going to get really good for the next couple of months. we'll go to camp david with a lot of republican senators and we are making america great again. thank you very much.

>> should steve bannon be fired? >> president trump heading to camp david for a weekend strike thatizing -- strike thategizing with gary cohn eamon javers is live for us. >> reporter: he did not want to talk about some of the politics surrounding the white house. he wants to talk about how things are doing and the president focusing on that at camp david this weekend. they're going to focus on the kplalt agenda for the year including politics and gary cohn telling me this morning that they're going to decide exactly which should come first, welfare reform orinfrastructure.

the welfare reform needs reconciliations. so there is a strategic issues to consider. gary cohn thinks they maybe able to do both of it simultaneously, all of that is hashed out at camp david this weekend. that's where the president is going on marine one today. >> thank you very much joining me now hugh hewitt, on msnbc, thank you for being with us what is the road map there this weekend? what are they going to be talking about and what do you expect coming out of it and then we'll get to the juice of the week >> well, they got to arrange the spending agreement first the government will shut down continuing the resolution and over arching spending agreement. the leader mcconnell have said again and again, i think paul

ryan makes up the best legislation team and along with john cornyn that i never seen the republicans have they're going to lay out negotiating with the democrats on a 20 months agreement how to hold down domestic spending and and decide what to do first on infrastructure i do not think enentitimetitlem reform is in the cards >> take us into the republican fraternity now in the past, the president have been disdainful and he's been bitter towards senator mcconnell but now he's functionally ex communicated the high priest of the alt-right steve bannon do you think the president is

coming closer to what may call the establishment boundaries of the republican party and is suing the further right leelemes of it. >> i think that's what's happening. the president likes to win the michael wolff, he likes to win. that's all of what donald trump is about and the traditional republican party delivered at the end of the year, a huge win, a the most significant tax bill since 1986. a lot of economic growth, the administration is cooking on all of its barbecues at once along comes this wolff bill, so who has stabbed him in the back? the guy that talked the most to wolff is steve bannon. the folks that did not talk

trash about the president is who he's meeting with up at camp david. the president is going to lean in and listen closely to mitch mccob nel a-- mcconnell it is a clear break of the first six months of team trump into the circle of influence around the president and will grow as the year goes on >> i agree with your comment about mcconnell and ryan when you are talking,tyler, of being chiller there, i thought you are referring to gary cohn and some others that's said in the wolff's book he's in the book calling dumb something, not suitable for television what happens to somebody like gary cohn next in your view?

>> i think it is important that people have been misquoted michael wolff left open of something he put in his book is not true the president is going to ask gary cohn did you say this and never denied it. if gary cohn got asked, he's got to tell the truth and own it or disown it bluntly. i don't think we ought to trust a lot of the book. a lot of it is thrown up against the wall but the bannon stuff that's in there, there are tapes, i do believe bannon quote, i had the embargo copy that the nbc people have there is a lot of people who are not mentioned in the index people that i know the president relied on. i know that wolff did not have full access to the entire team

advising the president i treat the wolff book gingerly. he's going to ask you about it and earlier, we are all walking around with some tattoos and everyone's got them. everyone gets a trump tattoo what matters is what you respond to it. >> hugh, there are two things though number one, i agree your points of the book. we on our side of the tv screen and no offense to anybody, i have been listening to people over and over again. i don't know what the heck james administration said behind his back i have no idea maybe this has happened before but not in this kind of media environment. is this the problem? even if you don't believe any of wolff's book and you are a full trump's supporter. does this kind of stuff makes it

harder for people to say i want to work for that white house does it make it harder to find the next great candidate >> yes, brian, it is interesting, it is the opposite. john kelly is brought to the white house in order that it was long time regulator by establishment capital of republicans. there is a paper system and a staffing system that's now there that's functioning very well, general mcmaster got the national security strategy and out of the president's signature of his endorsement just before the end of the ear what michael wolff's book is about the first six to eight months are always chaotic. >> bingo >> i go back to david stockman and george stephanopoulos. it is not a new story. >> we were talking about ron

christie about half an hour ago. i made the observation that we and the media spent a lot more time paying attention to what the president said specifically on twitter than what the results have been of his first year. if the president puts twitter down for good, how much popular do you think he will be? >> i believe the election in november would be about the economy and not about what he puts on twitter. >> i agree with you on that, by the way. >> i think people got 4% gdp, they're not going vote to bring the democrats back twitter may have been the greatest distractions ever from moving important the most legislation regulatory of the last 25 years. we have to wait and see. it is a great question, i don't know the answer to it. >> just so i know, one quick questio question if donald trump stops tweeting

from his account, the dow would rise 500 points on that day, would you agree with that? >> i don't think it could go any higher if he stops tweeting, i am afraid of what will happen because the market enjoys it maybe 500 points either way. >> hugh thanks, have a great weekend, hugh hewitt >> out flows of equities, stocks seeing an out flow this past week of more than $10 million. interna international eck the is seeing an in flow more, lets bring in bob pisani and fast money trader, tim seymo seymour. >> bob, we'll start with you is this evidence of euphoria of the u.s. market? >> i think it is evidence that

investors are pretty smart and they see values elsewhere. we talk about how expensive the u.s. market is and it is and it can stay expensive for a while europe has had a recovery in 2017 and their earnings and i think they're going to continue into 2018. i don't think this is irrational i think it makes some sense. >> tim, how could this be of the international or merging market stocks are better values these are all markets that have done better in the u.s. markets the past twelve months so where is the discrepancies in the value and what markets are still under value to buy right now? >> these are long cycles, emerging markets under performing and developing markets by 61% from 2010 to 2016 the fact they are recovering is

technical trade and reality of market closing merging markets relatives to the s & p are very cheap what you see in emerging markets is amazing recovery. this is after two or three years a row, contraction very, very cheap at a time when also you are seeking commodity and resources trading higher banks and resources are the next phase here and banks are interesting. >> tim, what do you put more weight on, relative to itself or s&p 500? >> relative to s&p 500 there is no inflation in em. that's typically you are bogey

and the boogy man. if you are cheap to the expensis & p, you are cheap. they think it is a momentum trade. it is a fundamentally balanced trade where the flow actually supports your trade for more time >> we got to leave it here >> last word, bob. >> my last word, i would not put too much in the flow right now the important thing is evidence, i am sure you noticed it, there is a gap up in the s & p everyday those are retail people buying at the end of the day and mutual funds people have to come in the average retail investors getting more involved in the market >> all right, guys, i will leave it there bob, thanks, tim, see you tonight. >> a news alert in the football world with dom chu >> a massive coaching contract

the now current oakland raiders are getting sets of possibly announce jon gruden as their new head coach that's according to nfl.com. the reason why it is interesting is he's current lyanne an analyst. they are in the midst, the raiders moving their team operation to las vegas, hopefully for the 2020 season, as we talk about move there, we wonder whether or not jon gruden will be looking at the idea that nevada has no state income taxes over that span a big move here in the world of football football if it is true, the raiders will have a press conference on tuesday. we'll see in fact if they do >> dom chu thank you. if you bought a computer or smart phone, anything that uses

a micro chip, you will want to hear about this. the power struggle that could tear apart one of the most successful partnership in nfl history and celebrities are some of the most enthusiastic in cannabis all that and much more coming up on "power lunch. there he is. your new brother-in-law. you like him. he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him.

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anybody driven in the snow knows that can reek havoc for your cars. all this week, people are betting they're going to buy windshield wipers fluids i get it, you slide off and bumping into a tree and fill it up is this a reason for these stocks moving. come on, snow is not new >> absolutely. the real key here is, we'll see what this winter amounts to. it looks much more normal than the past couple of years i have been through a big fan of name of autozone and o'reilly. i think now we are learning quickly that weather does matter and in this winter weather, it definitely helps to drive sales of these companies >> if weather matters, which of

those names have the most exposure to places where it snows. >> from your list there, i would say autozone and o'reilly. those are the two that i am most familiar with. there is no tires and brakes and that kind of thing from a geographic standpoint they're focused from the northeast. this is a big positive for monro on the service side as well >> do they tend to buy a lot of other things >> maybe it is different, i would say maybe but generally not. this is more of a need base purchase what you see happens with this weather battery dying. there is a lot of need base product that the weather drives.

>> customers when they do this, you are pulling forward demand in some respects that they don't make that sale on a battery later on >> not really. >> what we see what happens the last couple of years where it is been much in a way of weather sales. we went from fall into spring and never had the winter related. what we are seeing now is probably going to play off, this is real demand >> tires matter and you may want to watch good year as well you start to realize that your tires stink and you are sliding all over the place >> security that could leave any mac, pc, iphones, tablets. what you can do to protect your data and a frosty relationship between tom brady and bill

belichick. could it end the patriots' dynasty, we'll bring you that story with the person that wrote it stay with us, "power lunch." of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line. ibew members are our power professionals. they should be yours as well.

but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. two massive security flaws have been discovered in chips

and every computer and smart phones and tablets made in the past 20 years. now companies are moving in data josh lipton is joining us now. >> tyler, apple is responding to those two massive security vulnerabilities, all ios devices as well as macs are affected still, apple has released software fixes and ios devices to help defend against melt down the apple watch is not affected by melt down there is a lot of worries that impact the performance of devices. apple is saying that's not the case now, in addition in the coming days, apple is going to release an update to its safari web

browser. that fix could slow the browser by a small degree. this week remember intel disclosed that chips are vulnerable to hackers and discovered by research a few months ago allowing bad actors to assist memories and passwords. researchers shown that certain arm base chips are also affected google have also taken a step to protect their browsers brian, back to you >> josh, thank you very much lets get more details from this big story with ed lee welcome back the stories that we look back and we go oh and we move on. there is stories we look at and okay, what's the next step of the story. what kind of story is this >> this is a big deal. it is a huge thing in terms of what it means in terms of computer chips this is a fundamental law not

just in intel chips but the design of chips using this type of architecture. as apple points it out, no one is figuring out how to execute on these exploits. certain bad actors maybe looking into that. it is an incredible thing to pull off there are easier ways to hack the system what do we do? they cover up their camera on their phone with duct tape >> just cover up your whole computer, right? you need to update your software update it and get the latest one and everyone is working on and patches for this not all the patches solve every problem though you have to keep looking to make sure the latest one is up including the browsers browsers are another way that these things can be exploited.

in general, you should be updating your os and make sure you got the latest and most patches are security patches that's the first and foremost. >> it seems to be a much bigger intel problem. this is when a week of technology had great games of 3% and the entire sector. for intel, what is the next step the stocks still went down that day and there is talk that there is going to be -- the deeper sort of risk for a company like intel is apple and any other sort of major manufactures out there moving away from intel chip or any design chips all together if you notice the apple watch is not affected by this because they designed their own chips for it

we need to have our own instead of relying on these. >> quickly, what did intel know and when did they know it? >> they knew it a few months ago. it was just about the ceo presented, it is attributed to his stock sales plan the timing is fishy and it is worth looking into >> that was a preplan sale just to be clear. >> yes, it was a preplan sale and he instituted that around the time he was notified. >> okay. >> he started the trading plan, he started and put that in place around that time it is unclear if it happens right before or after. >> all right, ed lee, maybe we'll all be this weekend, thank you. lets get to sue herrera for our cnbc updates >> airport in the northeast are

back online after yesterday's storm forced cancellations of thousands of flights the storm cuts power to hundreds of homes in massachusetts forcing many to evacuate today, construction crews and the national guards are helping the clean up process in a town outside of scranton, zero temperatures. you can see ladders were completely in ice. one man was dead at the scene. the cdc plans to hold a hearing on january 16th. from the agenda, here is a quote. a nuclear detonation is unlikely planning in preparations canlessen deaths and illnesses and hp battery recall.

consumers are being asked to go to the company's website to find out if their models ar affected you are up to date, ty, back to you. >> thank you very much, sue. the oil market is closing for the day, jackie deangelis has the number >> good afternoon. support at $60 for sure but not enough momentum to get to the $62 market the themes are the same here, watching tensions over seas and watching veinventories and production the cartel production number provides down slightly all of these things are supportive now, continuing watching the dollar while it is coming back into play, with recent losses, it is been supported as well >> back over to you, melissa >> jackie, thank you jackpot is totally more than $1 billion

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a check at this hour the nasdaq and dow all hitting a session high >> nasdaq is up 100 and s&p 500 is higher by 12. tech materials are your leading sector and energy and utilities are the lagger e bay and papal is driving that sector higher. on the possible fracture of the new england patriots the most successful franchises ever first, the patriots have put out a statement in response to that article. it is long but here is what they said we look forward to the enormous challenge of competing in the postseason it is unfortunate and a need to respond to these fallacies

i say that with respect. espn, the patriots are saying these are fallacies. do you feel them like michael wolff right now? >> i have been so busy with the story, i have not followed anything with michael wolff this week >> how does it feel to have the patriots saying this is not true >> i have been working on this story for the next two months and i had multiple conversations with the patriots. and the weeks leading up to this and the days feeling incredibly comfortable and standby everything that i wrote. >> sorry >> what was the reason you pursued this story was it because of the tom brady blow at the offensive coordinator. is it somebody coming to you,

what set the story in motion patriots, it is not like they are 4-12 and missed the playoffs, seth >> yeah, i will tell you what it was. right at the nfl trading deadline in late october, early november, the patriots traded jimmy garoppolo for only a second round pick. it made no sense the patriots had decided not to trade him in the offseason coach bill belichick had told every coach that he was going to be on the roster this season and it just came out of nowhere, there was people in the building completely shocked by it and they were asking why does bill belichick that gains the most shrewd and forward thinking.

>> seth, this is tyler mathisen good friends >> and okay, so it made no sense. why did he do the deal and who told him to do it and why? >> what happens is tom brady declared until his mid-40s whether it was the patriots or somebody else and kraft did not want to see tom brady go play for another team and jimmy garoppolo shares an agent with tom brady and they were reje rejecting every contract offer that the patriots had proposed for them it was becoming a really difficult situation and two weeks before the trading deadline, kraft and bill belichick had a meeting and it lasted a long time bill belichick had to cancel other meeting and they came out with the mandate they're going to trade garoppolo everybody knew that was not what

bill belichick wanted to do. and, when they connected on the phone, he said do you want jimmy garoppolo for a second rounder he wanted to send jimmy some where, where they want to do well and that's what happens. >> we are in the same business here sometimes you have to report a round, the principles of a story, in this case, kraft, bill belichick and brady. that's what you did. did you make an effort and i assume you did to get the reaction of bill belichick famously to the media. bill belichick, brady or kraft, did they give you any confirmation or cooperations on this, were you left merely to report around them >> i reached out to them and you know i did not receive any reaction on the record but, you

know, the problems in the patriots building have been building all fall. it is not necessarily secret in football circle. a lot of it goes back to september and the business that tom brady started a couple of years ago with his trainer alex guerrero and the things that they tried to establish and how they divided in the locker room. >> trainer or business or do they go to the patriots ones >> how does it play out? i am sorry to jump in, just a matter of time how does it end? do you believe despite what he says, this is tom brady's final season particularly if they win the souper bowl again. >> no, i don't think kraft is going to sell the team the question is does bill belichick want to return to coach the 40-year-old tom brady.

try to develop a new quarterback to serve as a legacy peace to replace tom brady one day. that's the question and nobody knows the answer right now >> seth, espn, and former neighbor of tyler's. is he a great neighbor >> no, i am asking you >> i was thinking you of the snow storm >> i remember those. >> i shovelled that water. >> that's a true story >> good to see you recreational marijuana became legal in california and january 1st. coming up, we'll talk to one of those investors, singer, melissa etheredge. stay tuned, you are watching "power lunch."

recreational marijuana legalized in california as of january 1st. aditi is joining us live with melissa etheredge.

hi, melissa, thank you for joining us >> hello, thank you very much. >> you launched a number of cannabis products through etheredge farms. why do it? >> i went through my own health crisis and breast cancer and all collateral damage and i used medicinal cannabis to ease the appetite and sleep and i used it for so many things i thought this is such good medicine that i want to bring it to the rest of the world and not just people familiar with cannabis culture and those really looking for an alternative of your pharmaceutical alternatives.

>> a lot of people think that jeff sessions cracking down on marijuana could cripple the industry that's taking off are you worried of the federal government coming after you? >> well, no, not really. although nowadays we don't know. i don't really know why the department of justice and jeff sessions have chosen to do this now to try to roll back something that's been moving forward rather quickly in the last few years when 29 states have some form of legalized cannabis if you look at those that voted last year. it is over 60% of americans understand this now as medicine and are not, they're not believing the old scare tactics that we were under for so many years after the '70s no, i am not afraid. i don't know whether, we know

how he personally felt about cannabis and there is so many other issues that the legal cannabis market brings, so many from judicial reform, this is a civil rights issues and there are so many people in our prisons that are there for non violent crimes that had to do with cannabis and lives have been ruined. where we are going to and moving to as a country is changing that and it is changing it for the good i understand that there maybe a few folks who want to pull back on that because they are afraid of sort of the new horizon of health and judicial reform >> would you consider moving your business to canada of the specter of all the enforcement >> no. i believe there are so many good people especially here in california we voted clearly that we want

not only access to cannabis as a medicine but for adult use for those who wants to choose it as an alternative to alcohol or pharmaceutic pharmaceutical, it is so very important and the whole gulf coast here and washington and oregon, we have been on the forefront of this, we have grown some of the best plant medicine and we have been doing this for many years we are not backing down. when we got our representatives here and supporting this and we have so much tax revenue from this we have our attorney generals saying no way we are going to prosecute this this has been so good and the tax revenue on its own and how it is been helping our schools and there is so many good things that's coming out to try to roll it back to some dark ages. it is kind of crazy and i am not

going anywhere and i don't think any of us are going anywhere >> melissa etheridge, thank you very much for joining us >> thank you, thank you very much >> we do want to highlight some of those cannabis stocks today they are bouncing back, take a look at the alternative harvest at etf we highlighted that with the founder of a couple of days ago on "power lunch. they trade in toronto because they do comply with our basic rules. they are more than a billion dollars. they're not the tiny ones. >> if the snow sort of keeping you home bound you may want to go out to get your lottery tickets both the megamillions and the powerball have rolled over to $1 billion combined.

megamillions, and the powerball is 570 millions. don't quit your day job yet. the odds of winning is 1 and 292 millions for powerball if stars, the odds of winning both, tyler, is 1 in 75 quaudrillion, that is 15 zeros >> i am holding on to my day job. >> me, too >> my cold hands >>. >> what if your day job is buying lottery tickets >> all right >> where >> what is your day job is buying lottery tickets >> i might go out later and get it it there's a nice bodega down the streets. >> don't you hate standing by a lottery buyer when you're in the store? >> when they're picking the numbers. >> 6 14 you're sitting there going -- the dow up 25% over the past year look at emerging markets more than 35% over the same period are there better bets overseas for your money

we will discuss that when "power lunch" returns after this. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

stocks in your portfolio are seeing yet another banner week get this, markets outside of america are also surging, in fact, maybe even more than here. japan's naikkei hitting a new high to 1991 german dax near all-time high. etf, its longest daily win streak in a year and a lauhalf let's go global with the "trading nation" team. borris, you say nine to investing in america r why is germany a better investment than the s&p 500? >> here's the most interesting thing that i read this week. research note from deutsche bank that said that german stocks and japanese stocks actually got cheaper in 2017 because their earnings growth was faster than the appreciation in valuation. whereas u.s. got more expensive because valuation was faster than the earnings growth i think naturally from a fundamental point of view there's a lot more value overseas right now, and i think that probably the trade of 2018

is going to be long dax, short dow, as you're going it to see underperformance in the u.s. and overperformance in europe and perhaps even many japan. >> so you're not just saying germany will outperform us, you're saying we're going to go down, you expect a negative 2018 quickly. >> not necessarily i think they're going to go up faster than we do. i don't necessarily know if we're going to go down or not. i think the relative pace of growth is going to be stronger in europe and it's a better value at this point. i think it's a better trade. >> being where we are, larry, i guess when we say overseas that's everybody but canada and mexico for the most part you get my drift it's a big world out there where would you be investing outside of america >> well, if you look at commodities in countries that are exposed to commodities, we're talking about in the last 30 years commodities are the cheapest u.s. equities in any point in the last 30 years, and we're seeing a secular, excuse me, a secular shift into commodities right now. and that shift is now taking place through higher yields,

india yields, for example, india yields are up 1.5% higher in the last six months than the u.s. ten year so india ten year. so you're seeing growth overseas so countries that are exposed to commodities like russia, rsx, etf, that's where you're going to get a tremendous catch-up in out-performance relative to the u.s. a lot of these stocks have moved very fast, and very far in the last couple of months but buy the dips in those types of countries that are exposed to commodities. >> okay. buy the dips in the commodity countries. borris long germ guys, thank you very much. for more "trading nation" go to our website, tradingnation.cnbc.com tyler promises you the best "check please" he's had all week that is next and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> traders short stocks when they think they're going lower the number of shares sold short is called short interest

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check please. >> to no one's surprise, but maybe there's a surprise in the number attached to it, jon gruden apparently set to become

the next coach of the oakland raiders. soon to move to vegas and be called the vegas raiders ten years, $100 million. that's a great payday for a coach. it puts a big target on your back >> great payday, great week for stocks best start to the year for the dow and nasdaq since 2006. we'll see if we can continue that into next week. thanks for watching "power." >> "closing bell" begins right now. welcome to the "closing bell," i'm michelle caruso-cabrera in for kelly evans down here at the new york stock exchange. >> i'm bill griffeth welcome aboard as always yes, it's been a record-breaking week it come to an end in about 60 minutes. another big day for the major averages we're not showing the russell, but it's also in record territory. all four of them are as melissa was just saying, the best start to a new year in 12