>> leader an auto parts company. >> a big move next week. >> shush >> let me tell my story. it's trading 11 times earns. china and europe with great management. >> micron. giddyap. see how to do that >> see you next time. what's on the menu is there enough stock to go around the amount of stock has decreased significantly. the president heading to the heartland oh, snap shares of the social media company taking a hit following a big downgrade. now down 20%, the analysts behind that call will join us. "power lunch" starts right now

>> welcome to "power lunch", i'm michelle caruso-cabrera. stocks on the red, they did hit all-time highs before dropping and the s&p is higher up by one point. >> utilities, realty and tech are -- seagate, nvidia, a map. it's a weak day for the for pharmaceuticals. take a look at go pro, the ceo sake it will cut the workforce by 20% today it's at lower by a dollar and a half after a decline of nearly 20% blue apron is feeling blue today as well. down 17 cents.

when you're on the at 3.74 stock that's a 4% decline, tyler. >> michelle, thank you very much creche -- welcome, everybody. the firm said clients were net buyers in december, resulting in one of the longest buying streaks in history visa says it will raise the 401(k) matching commitment, following the passage of the new tax bill williams added that tax cuts should have a modest effect on growth brian? >> thank you with you kick off this monday with the markets and your money. stocks may be mixed, but don't be fooled.

we are close to record-high levels if a new question is -- if buyers keep coming in, there enough actual stock to go around bob pisani has this kind of interesting and new story. >> i don't think buybacks get enough credit for this buybacks are a big part of this whole game take a look at the amount of shares that are out there. a long time ago, the old s&p 500 had about 307 billion shares, all 500 stocks 2010 it went up, because the finance crisis companies issued tons of new shares, by 2017, they began buying back aggressively now we're down to the same oomt of shares we had in 2006 we have more demand for the same stock, but look at this, the average price of a stock in the s&p was $50 in 2006.

today it's $107. what's my point here more demand for the same stock means prices have just gone up i any we need to give buybacks more credit for this i'm going to add buybacks as a major component. these four are the big reasons the market has been moving up. finally we had the santa claus rally successful one other big barometer. first five-day gains, 83% of the time we'll see that happens, but so far year to date, s&p up 6%, back to you. >> thanks, bob so with the dow sitting near report levels, can you still make money, or is it time to look abroad? dow is up 26% over the past year, compared to 9% for the pannier 600 index.

lucy, good to have you here. you manage money internationally. what would you tell men investors right now? should they be focused on the united states? should they move toward europe, for example, or other parts of the globe instead? >> well, when you look at common currency basis, the u.s. slightly underperformed the rest of the world that was our expectations, because the valuations outside the u.s. were a bit more attractive, and there was more potential recovery in earnings, and also there's more potential for liquidity gain now, that looks at the beginning of the year to be still the same outside the u.s. we can see better value, better earnings

momentum and going into a peak liquidity globally, but the rest of the world is further behind the u.s. because the u.s. was early in really stimulating the -- and that at this stage is not a bad thing, because it means there's potential up side, so i think it still holds. >> brian, you invest exclusively in u.s. stocks you heard what lucy had to say, would you encourage people to stick with the u.s.? >> i would i think the valuations in europe of certainly reasonable. however i'm a momentum player and it looks like everything in the u.s. is going right right now. we have a great job environment, great growth, and now with this tax cut, you are looking at potential getting an increase in u.p.s., so what that means to us, and it's the last leg of this that will drive the next 12 to 18 months, do we see

investment spending? we think the tax cut will be the spur for that and that's where it's going to take us higher we may see a pullback in there, absolutely, but we're looking at that as a buying opportunity >> lucy, what maybe swiss bank ubs so attractive to you >> it's really lagged the rest of the financial sector. the sector as you're aware has been pretty strong ubs has really lagged. so from a value wrags point of view, it's looking more attractive than average. it's also stocks are very good gearing into higher interest rates as well. so to us, it looks as if it's got a lot of potential up side, plus po tench -- particular growth. >> brian, you have the theme of

investing in rebuilding america after the natural disasters, and the three stocks you picked you gave us boise cascade, kb homes, and all of these are expensive compared to -- what is it that you like about these stocks that you want to pay up for them? >> there's going to be a lot of rebuilding within houston, a lot of rebuilding in fla now california with the fires. the markets all seem stable. we think there's great growth opportunities. that's the type of thing we like to see we think all three companies will perform exceptionally well. >> that's a tall order they are all up dramatically last year. thank you both, good to have you

here. two organizations say apple needs to fix the problem of young people being addicted to their i phones. >> hey, mess lisa. >> jana partners is known for sending letters to management, but the one sent to apple over the weekend was of a different ilk. it's the latest campaign of the hedge fund's new quest to use the investing power to push society what they called to be better for society they say that apple's ubiquity has created unintended consequences for children. jana want apple to form a committee and add more restrictions for judger users. apple already provides tools that allows parents to restrict what their kids do on phone, but

jana and calpers said they should do more they plan to use their influence. investors and hedge funds have been increasingly focused on environment, social and governmental issues, this is in many ways response to that, but will it proof alpha? sources say the strategy should be seen as somewhere between charity and return-driven visiting, guys >> this is a real departure from what jana has done in the past, leslie you mentioned the social impact fund is the thinking they'll be able to get apple to do something, so therefore the share rice will go higher it seems like a very strange target to pick on. >> that is the interesting part of this. right now their investment in apple is very minimal, so i

think the gist here is to use their connections in the boardroom, use their name. the story on the front page of "wall street journal," use that kind of credibility to push management to do things that they believe are both better for the stock price in the long run, but also in a way that helps them achieve an end goal for, you know, in ways they believe that society would benefit from, such as restricting the use of phones for young people. >> i'm so skeptical, lucy. activist investors have terrible reputations. not that they should i think a lot of act victim is pretty good but most of is the market hates them. >> exactly they've had a massive pr problem in recent years, even on the campaign trail, activists were dragged through the mud for their inability to increase hiring and cud r & d, sell

companies off, part of that whole movement against hedge funds and they were kind of the poster child for that. activist hedge funds specifically, there's one way they could improve the image the challenge with this specifically is results. when you push a company like jana did with whole foods, they did sell themselves, there was a return with this it's less clear what that would be. usually you think of activists as they want to see some sort of corporate turnaround, whether it's pepsi, dupont, rarely doing see an activist, it seems to me, coming out in favor of pushing a company for something that they see as of long-term value based and built around social responsibility, as they define it

>> the fact they consider it a social responsibility issue i think says a lot you won't be able to move apple, but that aside, i think that given -- just as a parent, given the poshback on facebook around the elections and other things, now this, tyler, you have a teenager as well. >> spends a love the times on his phone. >> too much, and you try to be a good parents and say stop it, stop it, but at the same time you're on your phone, so you're a hypocrite at home. >> if apple developed further tools to help you curb your child's usage -- >> i think that's the point. i think that's the point if they come out with products that appeal to parents and help them manage, help them solve their problem, i would be more likely to buy apple products. >> but i do. >>s you went above and beyond.

>> apple will say if mac key wants to add an app -- it's interesting of a very long conversation. >> it is the first inning in the first month of a year where technology companies are going to be targeted, not necessarily by activists, but their role in, quote, is going to be called in question, as mark zuckerberg seems to acknowledge. >> we'll talk a lot more about this tomorrow. barry ross ensteen of jana partners will be on the halftime report noon tomorrow you will not want to miss that good president trump heading to nashville, tennessee, celebrating a big playoff win there. he'll speak to a convention of farmers, who is he going to tell them about nafta and trade plus everybody is buzzing about oprah winfrey at the

golden globes. we'll have the details of who won, who lost and o whwore the 500 shades of black, coming up on "power lunch. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™

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president trump speaking at the farm bureau convention he's expected to talk trade and nafta. kayla tausche joins us >> the president is at -- as

well as the four members who has led some discussions in the last few weeks attendees want to hear about trade, their commitment to nafta, but the speech according to experts we've seen will focus largely on tax reform. >> he also to the department of agriculture like access to rural broadband, and a reliable workforce. those two specific issues will require a codified infrastructure and, which they talked about over the weekend. congressional counterparts, but have yet to formalize those policies senior aides say the discussions at camp davidable knowledged that potentially a blockbust,

legislation, and their best course of action is to figure out more realistic vehicles to pass things like welfare reform and infrastructure, infrastructure potentially just through the budget and spending. their well fair reform potential through the farm bill. we'll see if the president touches on those he's braving in inclement weather to get there kayla, thank you so much for more on what to expect from the president's speech. let's bring in the former undersecretary of commerce this is around area where we have a trade surplus. >> we do. >> with many countries, and the feeling i guess would be if we

take a more muscular stance on trade that some of the companies to which we expert, retaliate and make our ago cultural exports more expensive. >> especially the nafta countries. since it was put into place in 1993, the exports to canada and mexico have gone up five times that supports over 1 million u.s. jobs just on agricultural trade alone. one of the things the president will hear is times have been tough since the end of the commodity super cycle. what they want afford,.

>> there are a couple big issues that are still out there the so-called sunset clause, which would allow us to end the agreement after five years i think fundamentally that makes no sense i don't knowhow you do any dea and have that go away after some fixed period of time they're very focused on auto parts, and the components in calculating nafta and they're also very focused on the so-called investor -- those are the three poison pills that seem to be out there. but agriculture is -- >> outside of the nafta rubric, we trade in agricultural commodities with other countries. bring me up to speed on that, and how agriculture could be affected by trade clashes, for example, between the u.s. and china? >> agriculture is one of the most protected things, one of

the most protected products and goods for countries around the world. so you can imagine, as you know, one of the thinks that kayla has talked about on the shows in the past, some of these upcomes decision out of the government on chinese steel and aluminum. if we took, to your point, tyler, a muscular approach, you can imagine china potential retaliating with american agricultural products, soybeans, for example. >> we are also expecting a bunch of very important decisions, whether it be solar panels washing machines or boeing airplanes. will that give us a window into the policy or the strategy that will go forth when it comes to regoevting >> this is a big upcoming few weeks. you mentioned some of these section 201 and section 232 investigations on steel, on alumin

aluminum. >> my general review on these topics is these things have not been utilized by presidents in the past, i think for good reason >> are likely to be ineffective, short term and fundamentally damaging >> on that -- >> appreciate it. >> shares of editas medicine sharply lower, and we'll speak with the ceo politics playing a big role, did soap ra inadvertently launch a presidential about i had we'll speaabk out the award winners as well, when "power lunch" returns and the wolf huffed and puffed...

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we can get stuff. 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. we have breaking news. alex sherman has more. >> thanks, brian we heard early from my colleague josh lipton that go pro might be considering a sale however now we heard that -- whether or not a deal actually happens, that's another question we don't know when jpmorgan was hired by the company, so that may determine whether or not they have actually run a full

process or if they're still in fact running a process it did son like that nick woodman when he said, look, we would consider partnering up or affecting an acquire, but i prefer to stay independent, maybe that means they have already put out some feelers and have come up umphanded or at least not come up with a deal. >> any words from analysts i would imagine those reports will be happen later today. you have the ceo of the company acknowledging publicly that he would be open to a sale.

>> i elects, thank you very much michelle, you pressed him on this topic, you said basically i liked your question, do you regret going public? >> they had the response that made news. >> i thought his answer was good, but he was like, look, we have a higher profile. we're getting punished for a reason, we deserve it. >> you should punished, and he said, well -- he admitted the market was right >> go pro reminds me of blackberry single product, 96 a share to what is it now 4?

moving on here, preliminary ratings in from the golden globes, the total audience down about a million viewers from last year. julia boorstin joins us from los angeles. >> there were still some big winners, women as well as the time's up movement the studio with the most wins, fox. hbo dominated the tv category with four awards for "big little lies" hewletto brought innist first golden globes ever for "the handmaid's tale." and netflix brought home one

award. a-24 with three wins, that was financed by -- but perhaps the biggest winner, oprah win free her impassed speed resulted in a result for her to run for president. the show drew about 19 million viewers, down about 9% from last year, guys >> i thought it was boring, the parts i saw. >> i actually did, too it may be that i have less of a stake in some of the shows and movies than i have in past years. oprah did rouse the house. >> was it just me or was there some accidental bleeping out >> it was reported this morning that -- >> i washed and speech and she said "shift.

i noticed that my tv went [ muted ]. >> there was an accidental bleeping, the fox searchlight, that was bleeped out but usually there's a correlation with how successful the films are that are nominated and how many people tune in. back whether "titanic" was nominated, oscars, many people tuned in or "after a tar" was nominated. people tuned in because a lotsh when it's films not as big at the box office or the spotlight, fewer people like yourself, tide her feel invested. >> now i don't feel as bad i'm representing the every man here were a lot of the movies that were nominated, are they in limited release or very recently

released >> dismissal specialty films are released at the end of the year in limited release and go more wide around this time of year to get more viewers on the heels of taken and leading up to the oscars because of your, tyler, it's hand to feel investmented, that i why the oscars expanded the potential number of nominees from five to ten now up to ten films can be nominated, so you will get films with more widespread approval or interest in that best picture category. >> i saw "i, tonya" over the weekend. it was pretty good, and the actress, she was pretty good if you can get past the f-bombs, it was pretty great. >> bye, guys. stacks law with lower

corporate rate has only been a law for a couple weeks representative john delaney makes his case next, on "power lunch. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you.

hi, everybody. i'm sue herera here's your cnbc news update for this hour. homeland security says the u.s. will stop giving immigrants from el salvador special protections on september 9th, 2019, forcing some 200,000 immigrants to leave the country or face deportation. the agency says the 18-monday delay will allow for an orderly transition. billionaire activist tom steyer will invest in getting younger voters to the polls. >> my fight is not just in california my fight is removing donald trump from office and from power

that starts with taking the house back in 2018 >> gas prices on the rise in this new year. the average price for a galleon of regular gas jumped some three cents over the past few weeks. analysts say higher crude oil costs are to blame for that. that's it news update this hour, melissa back to you. cryptocurrency is taking a hit today. >> that's right. under pressure led by ripple, which started to sell off on friday after the coin-based platform said it wasn't going to offer trading of additional cryptocurrency sits. ripple is down another 10% and others also trading lower. south koreans officials announced they're conducting on-site inspection of large commercial banks to make sure they are complying with regulations when it comes to

cryptocurrency sit back to you. thank you very much, seema he ylan muiis looking at the arguments from both sides. >> republicans hope that it pay foss itself, and sells for itself all those companies -- the white house is now branding them as trump bonuses, saying they're only the beginning of stronger economic growth. still, conservative groups are not taking any chances the american action network is committing at least $so million to tout the benefits of this new law, including a new tv ad airing in key congressional districts. the republicans are facing an uphill battle, the bulk of voters opposed new tax laws, the option is also well funded

the group behind it, not one penny, has $10 million to spend over the next six months so, guys, there's been a lot of debail over what the next priority should be, but both sides want to keep it front and center. >> in your excellent reporting, have you noticed in the two sides are coming together at all? any reason to be optimistic? do we see bipar sanship anywhere >> on the tax plan, it's not even clear in a technical corrections bill to fix some of the issues will pass, because they need the democrats to do that >> they want the tire to stay flat, it appears

almost everybody agrees we need something the questions are what, and how do we pay for itnaryland's democratic congressman delaney, the only former ceo of a publicly traded company currently serving in congress, it's good to see you. >> thanks for having me. > ylan, can you stick around say every agrees, raise it, is there a technical way that could get down >> sure, we could pass a law my point is this happened really fast and it was on a bipartisan

basis. i don't support it for a number of reasons, but now we have moved into the infrastructure plan to do it the right way we need an investment from the federal government, i think that should be at least $200 billion to create a transformative plan, that combined with other capital could create a trillion dollars of infrastructure funding, create 10 million jobs, rebuild or country, but the question is where do you get the $200 billion? to me the easiest is to go back as part of fixes the tax law, raise the corporate rate from 21 to 23. for years the business group who would come to the hill and talk about the need to make our tax code more competitive would say we need to get the rates at 25% from 35, to make it competitive. >> i hear all that i appreciate that, but here's the thing, what we have always found in the past, sir, when you

give congress money for infrastructure, we actually don't get that much off it the transmission mechanism seems to be broken >> i just don't think that's correct. the highway trust fund, which funds 90% of the surface transportation projects in this country, which is the roads, and bridges and transit systems we have, is funded by the gas tax, which hasn't been raised since 1992 or '93, right so there's a deficit every year, and the congress makes up that deficit, and pretty much everyone agrees who has looked at the infrastructure problems, that the highway trust fund is a successful way, the federal government takes the money and gives it to the states based on

the priorities that they put forth one of the things i propose doing is put another $120 billion in the highway trust fund and that would create more funding, so i just don't think the analysis that the reason we have poor infrastructure in this country is because, like government being bad at it. if you look at the data across the last kind of three or four decades, we have cut our investment and infrastructure razz a percentage of our economy in half, right so relative to what we used to -- >> hold on one said, ylan has a question. >> congressman, does tying your proposal to increasing the corporate rate just make it a nonstarter is this really an honest attempt at a bipartisan compromise here? >> yes, i think every democrat would support it and i think a lot of republicans would support

it we kind of overshot it and went to 21% at one point this -- it i think if you brought it up to 23%, you would still be way ahead -- >> would you support other ways to pay for it? >> yeah. that generates actually about $200 billion of revenue if you fix that so there's another way to pay for it the way they did this, it ended up costing the -- but the way they came up with that is big changes on one side, on the other side 3.5 trillion, you want infrastructure in the mix. >> congressman delaney, we appreciate you coming on, we

would love you on set, but the effort to get here make it ditch. >> thanks for having me. rickster >> boy, good luck. we haven't closed since the 17th of march you could see a year to day of ten there is we haven't cracked through the top. it's been solid with respect to rates, holding at the top of the range since march, the etf for high yield or junk, you could see it's making highs we haven't seen since november. we are trading at the lowest intraday level since going back to the last trading day of 2017.

finally a one month of the europo versus the dollar why is this interesting in traders love the look of that double to have at 120. if there's ever a couple sessions where you want to see how good the europo is or how strong the dollar, make the comeback, the next two days might be your special two days. thank you very much. the ceo of editas on a day when her company's stock is down. we're going to go live to the big health carsuite mm in san francisco, when "power lunch" returns right after this ♪ (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify

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editas medicine falling today, meg tirrell is standing by with the company's creme o. take it away >> mel, thanks so much

joining us is katrine bosley this seems to be affecting your stock and sore stocks working in this exciting gene editing technology essentially whether people have an existing immunity to this technology how due look at that research? >> we actually don't see this as an issue in the field of genome editing, sometimes when they publications come out, you'll see a little reaction, we seen that bev at editas, we're focused on doing that translational worm to advance experimental medicines into studies with people we have done a lot of work on this specific topic, and we don't see this as an issue >> you announced today you have

fife medicines in the next five years. this is a really new technology. we are excited morgan of our fi years goal to advance into studies of people over the next five years we have been building our capabilities in science the last four years and we feel well positioned to do this in a range of diseases. our first program treats inherited form of blindness and other programs we expect to advance in cancer and diseases in the blood such as sickle cell disease and a number of disease as well. >> there is a lot to talk about there. one question i want to ask you, stat news had an interesting story saying there is 20 women ceo presented here at jp morgan and 22 men, how can they be

doing better >> diversities of all forms are critical to success. it is a strength if you look at the senior team within the company, over half of our team members are women but, it is not just a gender, it is a broader question of diversity because making experimental medicines and advancing them is tough and having diversity is a strength and part of what makes us successful >> all right, katrine, we'll leave it there, thank you for being here >> back over to you. >> see you soon. >> coming up, snap, social media company is getting another downgraded day, shares taking another hit. the analyst behind the call is coming up next

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if firm says the company needs to show execution. it is great to have you with us. >> thanks for having me.

you are also concern of the sideline, how disruptive can you think it be? >> over long-term is a good thing for the company but disrue we launching our play book and becoming more selective in some of the stories we prefer facebook over snap and social number three, they actually missed the last two quarters of public company the last factor, they don't provide financial guidance 99% provides guidance. investors are trying to assess if they feel omfortable. google does not share metrics. google is google we like to see more details

given around the future. you can drive a bus sideways through wall street on 18 or 19 on snap today. >> go prowith recording and apparently looking for buyer do you think snap chat needs to sell >> i don't think they need to do it now we think there is a strategic value. >> i am going to ask a flip side to brian's question, brent that's anybody in our universe, could they be potential of acquirining gopro. >> we don't cover any names on the interpret.

>> so they don't want to go into hardware at all. >> well, google is moving into hardware but they are doing it in the home which makes sense. you know they have their own cameras obviously, they are billing now a building now and they have their own phones i don't think the number one strategic objective for google right now. the price is higher than gopro at this time brent thill, thank youment. coming up, the growing controversy of intel ceo's stock sales. what did he know and who's job is it to make sure that kids are not addicted to their iphones? >> tim cook or their participen second hour of "power lunch" starts right after this.

welcome back everybody, second hour of "power lunch," i am tyler mathisen. is apple or any company really to blame from over use of its digital product or does that responsibility fall back on the users or their parents we'll debate that. if you are buying stocks radioig now, you maybe making a bet,

plus, 240 miles per hour, that's the new world's speed record set by the hyper loop in its latest test run how far away are we from technology coming in from cities all around the world >> the ceo will join us as "power lunch" starts right now >> welcome to "power lunch," i am michelle caruso-cabrera stocks is making a come back the dow is higher by two-points and the s&p 500 is higher than nearly four. a record day for the fang names. amazon and alphabet, they're all hitting a lifetime high. retail names at an all time highs. don't hear that often, it is home depot and lowe's and walmart and the dollar tree.

you can see it is slower by nearly 2%. $18.18 cents per share and krcryptocurrency >> brian >> all right, here is what else is happening at this hour. you got starbucks accusing of over chargiinining customers. vice president pence will travel to egypt, jordan, israel later this month the vice president will address the share need combat terrorism. while the u.s. is under a cold spell last week, australians were melting roads temperatures in sidney, austria hitting 117 degrees as the hottest day reported since 1939. >> i sure they wish they had our weather. we begin this hour out west with apple feeling the heat with two

activist investors urging the tech giant to deal with the problem of over use of iphones >> josh lipton as all the details. >> apple products could hurt children now they note that u.s. teenagers who spend three hours a day or more on electronic devices are 30% or likely to have a risk factor suicide teens that spend five or more a day on devices are 51% likely to get less than seven hours of

sleep. hair sho shareholders want to partner with experts to conduct research and offering new tools and options. apple does offer parents help. remember they can restrict the apps and contents and services that their kids use on these devices. shareholders say it is not enough when question, is really shareholders going after the right company. while their target is apple, it is important to note that it is google android operating system that dominates the u.s. market with a 65% share brian, back to you >> thank you, josh one of the researchers cited in the letter, a psychologist at san diego university why kids are growing up less rebellious and completely unprepared for adulthood

guys, thank you very much both of you for joining us here lets start with jean with you, there is two stories here. from the addiction side, here is the point people are trying to make this is not up to apple or samsung or google. it is the parents who needed to monitor this >> can you make an argument that this is not a -- who's right in that argument? >> i think it is a false dichotomy. the point in this letter is to encourage apple to give parents more tools and give them better tools to help kids manage their use of these products so it is some what similar to cigarettes. it should not be like oh,

parents should do everything no, we restrict the sale of cigarettes those younger than 18 and those younger than 21. where you saying cell phones are as addicted as cigarettes? >> we don't know those yet there is serious consequences to over use of these devices, depression and risk factor for suicide. >> why cannot parents just give their kids a flip phone? i mean to be fair, i am not a parent but all i need to do is take away the smart phone and give a junior a nokia flip phone, the problem is solved >> good luck >> those phones are in acrocreay difficult to phone a lot of great things that are

done on a smart phones that are helpful for kids >> i have three children myself, the oldest is 11 i would be much willing to give my oldest daughter a smart phone if there is a more and easier seem less way when i set up the iphone to say okay, she's 11, we'll do this restriction and she will only call these numbers and we are not going to allow social media on the phone. right now there is not a seem less way to do that. >> i agree with you, there are tools out there that can help you do this. jw, i would like to get you into the conversation here and i wonder why in i am characterizing your view correctly. you think it is some how inappropriate or a step too far for an investor or a group of investors to approach a board and say hey, you want to take a

look at this >> well, sure, the problem is what lies behind this letter this letter is a threat to use the power the shareholders have, called the shareholder's proposal process the chairman have identified and a number of sc commissioners have identified. scc has a rule creating a town hall process for shareholders to submit some of these proposals are downright offensive to a lot of people the best thing from israel this is one example of a number of examples of political and social policy that makes their way into the shareholder's propos proposal process when you talk to tech ceos of why don't they go public, they want to avoid the shareholder proposal process they do issues that very much

lean towards sort of democratic party politics because they run by elected officials so you cannot talk about this one issue without talking about the process they're suggesting >> professor, are you getting any payments from genna? >> no, they did not sponsor the research they are paying me as a cu consultant >> for a year? >> it is roughly for a year so i help write the letter and we are consulting for them to learn more of the research >> have you done this with other companies? >> no, i have not. >> jw, i like to probe more on the idea why this shareholder and why should a big shareholder no matter what their political point of view is, why should a shareholder be able to bring to a board or a management of a

company a concern of theirs whether it has to do with some environmental issues or a labor issue or what have you is that what owners ought to be able to do >> i am not saying they cannot communicate with the board i am not saying they don't have the right to sell shares if they are unhappy with the company. >> sure, they cancel i sell it >> what i am suggesting is federal process is deeply flawed we are talking about shareholder proposal process that's paid full for the company and not the investors itself we are talking about a process where the company itself has to fund the debate. i don't think the ordinance of the shareholder wants to subsidize. >> let me strip away the process here and get your thought on really the heart of the other

professors of viewpoint which the company ought to be senttized to the idea that they can make a better products that what she identify as a potential health problems, on the merits of that? >> i think it is a serious issue. as a parent i restrict my own children's access to the iphone. they love it but they only get about an hour a week of it >> you are good, you are tough, man. >> that's what they say. customer demand is going to resolve this issue more than shareholders using this special political process. >> again, i disagree completely. i am sorry because schools now use ipads. i know it is not the iphone but many of the same characteristics. a lot of schools out there that require you or make you or give

you an ipad so as it works its way into our system whether it is with google docs or chrome or apple, are we going to need to have some protection of what else you can do with that. >> i think as soon as we are learning of the problem, it gets to parents and parents understanding it and customer demand is going to be strong >> that works much better than some letter. >> jean, is that what you are driving at here. whether it comes from a shareholder base or consumers, what you seem to be driving at jean is the idea that if apple were to come up with an easier more seemless way and it is not just apple we are pointing out it is google and facebook and all the companies that have a responsibility in this era if the company came up and responded to a consumer customer need, that would be the ideal

way to solve it, right >> right i think it is a win-win situation is the thing for apple in particular, they make their profit when someone buys the device and owns it. it does not matter how often they use it. what the research shows is the happiest teens are those who have the phone but use them about an hour or two hours a day. it is beyond that when issues start to show up apple makes the profit and a lot of parents are being willing to buy those phones for their teens and kids if they were safer and could be restricted easily. >> jean are you working with any other company or shareholders, google or samsung to establish the same sort of goal? no i think apple is the best place to start i do think that probably it is going to happen in the future whether it is me or other researchers to work with other

companies with facebook, for example, facebook is taking some steps in that area already and we'll take more because they are rightly concerned with the mental health of their users >> why do you think apple is the best place to start when josh is pointed out, more than half of all the cell phones in the country are based on an strodro. >> according to one good survey, 75% of teens own an iphone so, among teens, iphones are the most prominent technology. >> thank you, both professors. >> the parents pay for it. >> and monthly bills >> effectively it is >> an hour a week for professor everett. >> why the bulls think this is

the strongest rally in the history. venezuela is experiencing a new type of cryptocurrency americans is hitting on a new record high on the home front. will the tax build keep them usom all the equities in their we'll have a lot more when "power lunch" returns.

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it is been called one of the most disrespected rallies in history. some analysts are wondering if this could be the greatest valley of all santoli is joinin now. >> you are betting that the current market would be the greatest of all time right now we are basically better in term of how long the market has gone since march of 2009 and how strong it is been for returns and high evaluations is and how much public participation is in the stock market all those things are highest in the bull market besides the one that ended in the year 2000s as we all look back on being the greatest time. >> the scarest of that is the after math

i would say the good news is there is a lot of distance and getting that status in terms of a great time we are not seeing this recklessness and while we are potentially over valued today. so that's why i think you heard a lot of calls for some kind of a melt up. that may in fact get us trending in the direction being the best of all time. >> all that 1990s rally and the michael jordan rally will call this one the lebron james rally, right? >> there you go. >> we can all debate about that. >> thanks mike >> it could be apart of what is the greatest of all times. where should you put your money to work? lets bring in our chief investor and our vice chairman. chairman, does it matter that it

is the greatest market of all time whether i do with my money? >> no, please stop talking about that >> from our work, there is three stages there is the reactionary stage and acceptance stage so many people talking about a market euphoria and maybe bit coin which is not a real asset or cannabis stock which is the fun thing to talk about. in terms of bear bone investing and fundamental investing, i like to annoy myself, no one fundamentally buying stocks, just chasing what's left >> yeah, i want to ask charlie, you are working at mutual funds business i read this morning more money came out of equity funds last year in the u.s. and went in >> why does this go getting the respect? >> well, people have moved their money from funds from etfs and

index fund broadly speaking, i would say it is in the middle it is not euphoria or people or the classic story of the taxi cab driver giving investment advise for jp morgan, it is dow the middle there is a lot of people that don't respect this rally we think it is dangerous so we would advise your listeners and viewers to put money onto the market on a normal and even bases and not trying to pick the perfect time to invest >> is there, charlie, is there one thing as inflation or sfw s interest rates that investors should be watching to tell them whether we are getting close to the ninth inning of this ball game or not. >> so you raised the two big things that people do need to worry about and that's interest

rates which are always the big force that brings future earnings back to the present >> when interest rates go up a lot, that's bad news for the stock market >> the second one is inflation and this is the one that i think a lot of people are missing, there are a lot of things going on right now that are going to make inflation going up from a tight labor market to the first time ever. we have a president that's trying to tough down the value of the dollar to countries around the world competing to reduce the value of currencies all of thesose things are inflationary. >> brian, what's the telltale i should watch >> the yield curve >> it occurs two-year and is that tightens or does it go negative it is predicted of our last recession. the yield curve can plan for a

while and the markets have been going for several months >> we saw in '98 the yield curve converted. >> that's right, the key thing that most people are missing, we have been waiting for 35 years for inflation. we could see a growth scare where growth is a little stronger than everybody thinks we are a couple of years away from that. this bull markets have spent 20 years in the making. the respect and corporate america financial services have been getting worse and worse the market is more quadruple since 2009 and we have not engaged in buying stocks we need to start buying more traditional portfolios and mutual funds in flow in that product yet. you start to see the acceptance phase of the market. >> all right, brian, charlie, appreciate the discussion. >> intel's ceo is under fire

after the company learns about serious security flaws of his chip was that fair or did he do anything wrong we'll debate that ahead on "power lunch." 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. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

shares of intel continues to lag as it falls out of the the chip an article published today questioning the timing of mr. sale our next guest says the sale is troubling and raising some red flags here joining us now is teresa goody it is great to have you with us. >> thanks for having me. >> all execs canc sell their shares in order to do that what stands out in the way he sold his shares. >> he changed his one plan after becoming aware of the security issues and before he knew that the disclosure would become public of the security issues. so learning of the breach,

scheduling his trade to a curve before the disclosure and before any kind of hits to the stock price, to me is a clear red flag and suspicious to warn >> why would intel once they became aware of the glitch, why would they hold onto that information for as long as they did, how do we know whether mr. persanich became aware of the flaw >> i can imagine they're trying to find some sort of solutions hopefully being able to resolve it before disclosing it. that would be my best guess. he would have learned of this in june of 2017

>> and given this is an industry wide, he's doing an industry wide solution. that's a material issue there. >> and the time frame is june 2017 october 30th, he established the sales plan and he sold number 29 he sold to unrestricted stocks a and. >> it does not smell right >> when you have that kind of unusual trading activity and he's gone through the minimum required by the company and you have this suspicious timing consu consu consu consu consume c consume bli, those are red flags

that need to be looked into. >> in queries by the fcc >> possibly the doj but definitely the fcc >> teresa, thank you very much for your comment, we appreciate it >> okay, thanks. >> lets head now to sue herrera for our news update. >> hi, here is what's happening. we begin with vice president pence who rescheduled a strip to the middle east. that trip was postponed in december after pence decided to remain in washington for the senate vote on tax reform. >> protesters rallied near the white house after the trump administration announced plans to end special protection for sa salvadorans immigrants kate middleton taken two adorable pictures of her

adorable daughter on her first day of school. attending morning sessions monday through friday. >> what a cutie pie. this is not cute that's a bedbug. the capitol of the u.s. for the second year of the row is baltimore. washington came in second followed by chicago and los angeles and columbus ohio. >> can we put the princess picture backup again i hate bugs. >> that's the news update at this hour. >> charm city. >> yeah, i know. >> i love baltimore but that's a problem. you maybe be especially opening new idea in transit. the ceo on hyper loop on how close we maybe on having this happen coming up. the value of capital? what's critical thinking like? a basketball costs $14.

what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

when could this technology be coming to your city how could you book your ticket joining us now is rob lloyd, the ceo of virgin hyper loop one >> it is great to have you with

us >> it is in disputable of 275 miles max. how far off are you from the benchmark? >> the actual goal of the company, now that we demonstrated all the key elements and gone faster as you just mentioned is actually look for the first commercial root. we know that we can hit the 600 miles per hour range we are k llooking around the wod of customers moving ahead. >> customers meaning cities and municipalities if i am somebody in a city, i would imagine that this is an impressive milestone you need to prove the speed and vacuum is able to withstood for thousands of miles or however long the actual path is, right

>> yes, we are comfortable with that and in fact from many of the models we built, we far exceeded those expectations. we are not concern of taking it to scale what we are considering though is now knowing that we can go really fast. we need to think of what it means from a passenger experience here at cs, what we have just announced is the world's first application that embodies hyper loop and other mode of transportations so you can have a seem less experience >> it is not good enough to just go 50 or 60 or 300 miles really fast unless the rest of the transportation experience changes as well. so that's the application that we just announced. we are pretty excited about that it will change how we look at moving between cities. that's where i think is where transportation authorities are going to be. >> rob, i love what you are

doing because high speed rail in the northeast means -- what is the cost per mile for hyper loop >> the cost to build hyper loop right now based on the current assumptions that we have and the materials will be about two-thirds of the cost of the high paid rail and up to three times faster you significantly reduce the amount of energy that it takes to move a vehicle through that and whether it is cargo or passengers so we are pretty convinced we have a tremendous advantage and we are also convinced of a smaller footpr t footprint, we can come right into the city certain. we don't need a rail station that takes so much space and it is hard to build we can connect to airports and existing train stations or metro stops and blend all of those together in a seem less experience is what we are demonstrating here >> so you are saying you are less expensive than high speed

rails, is that correct is it because you don't have to buy land and pay property owners >> yes, sometimes we are above land and sometimes we are in tunnels because the actual pressure reduction allowing us to create a smaller tunnel or using less land aboveground. it is less expensive to create the land we can build much more quickly. we are working on advance manufacturing techniques that allow us to build kilometerkilos a lot is going on. we proven already here just 40 miles from here that the tech works and now the goal of the company is fun to customers that really wants to go and build it. >> it requires a lot of money. how far does it get you? >> yes, so the change to richard

was fantastic and we were thrilled to have an entrepreneur of his background and he's experienced and proven he's been able to build new companies and airlines and train stations and putting people into space. that's fantastic >> many of our existing chairs lifting up another 50 millions but in the next few months, we'll be aggressively moving forward without financing and that's going to help us meet that next level of development that the company requires. >> rob lloyd, pleasure, thank you very much for joining us >> thank you >> venezuela, president nicholas maduro is getting into the block change business. we'll tell you more next on crypto, straight ahead 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. we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant.

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your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. maduro is calling the pet tr petro. he made the announcement on thursday however, block chain experts and minors are skeptical if it is going to work.

a few reasons is the lack of rule of law in venezuela, ultimately to have trust in this exchange by a physical asset, you have to believe it can be redeemed on that asset, in this case, a barrel per oil how do you know if they're going to deliver and if they don't, what's your recourse experts are technically sk skeptic skeptical. will they'll be based on a theory or something else there will be many cryptocurrencies in the future, they are doubtful of this particular one >> steven mckeen, he joins us here onset, good to have you here >> thank you for having me >> lets talk about asset back cryptocurrency >> you said for example, real estate could have krcryptocurr y

cryptocurrency, explain. >> drift trading from something like bitcoin, on asset back token is a reputation of an ownership claims you can think of this as another form of security th they are often calls security tokens you got an online and on chain, represe and because it is on chains, it changes in ways these things can be traded. >> is it premind or where do you get those tokens >> so you could establish through a smart contract, you could establish a certain number of tokens that represent a billing. let me give you an example they're a venture capital firms. they are locked up for seven or

ten years. they raise a portion of their fund through token issues so they issue a set number of tokens, this is going to represent the normal ship. these tokens will be freely tradeables so you can buy and sell into the venture capital funds in a way that was not historically possible. >> if there is a portion of this private firm, how do we know the value, how does the value of that token changed if there is no really qu liquidity >> it does not represent the whole thing. it does represent a specific proportions of the fun >> they have a platform where they distributed the information. they post that asset vol every

week and that's what investors are trading their trade. >> the thing people are minding on bitcoin, who's maintaining all the block chain that's necessary in order to keep the tractions going. how do they get paid >> you can build this thing on top of an existing protocol. >> you would use a theorem to pay the transaction fees, this is why the financial services industry, they taken a lighting. what else could this display because we mentioned free exchanges. >> anybody who settles trades and ahmad middleman on wall str. >> but, there are also going to be applying this equity response

and the issue is not so much liquidity but potentially open ing up to a wider marketplace. >> lets say i wanted to securize or syndicating a house >> yep >> how do i get the value of the property, we have to agree that this house is worth $750,000 and not $100 >> in the initial sale, the market would set that. it is one of those people wants to buy and sell. we are not seeing a lot of token realization state yet. >> the way we value any way of commercial estate. >> you look at how much is least and what the vacancy was >> it is going to be traded. >> kind of like an --

>> any sort of mechanism or a dutch auction, once they are out in the market, they trade a share of stocks. how is the value of apple determines >> we are getting there? >> thank you, we appreciate it >> tesla is starting off the year with a manning. having its best day since september, should u deyori the momentum >> that's next on "power lunch."

americans hitting a record high in equity on their homes, but before you take out that loan you may want to listen to our diana olick who's here on set with more. >> hi, melissa fast rising home prices have a lot of homeowners sitting on a pile of cash the 42 million homeowners are mortgages have a $5.5 trillion in tapable equity according to black knight $3 trillion more than they had when the housing market last bottomed in 2012 after the financial crisis black knight defines tappabl ex exek

homeowners can value do a cashout refinance or take out a home equity loan or line of credit. the first one is a lump sum, the second is slyke a chelike a che account on your house. if you refi you could lose a rock bottom interest rate. home equity loans have been very hot in the last two years. thousand y now you have a problem, lost the tax deduction on the interest paid on a home equity loan the republican tax plan wiped that out still even without a deduction, the home equity loan is still the cheapest way to borrow cash right now. while nobody wants to see the kind of home as atm behavior we saw 12 years ago, cash sitting in your house, guys, you know, it's really not working for you. >> are lenders as willing as they used to be to write these leans? >> no. no good point they're much tighter on underwriting they want to see all of your documentation, but as the mortgage market is getting more competitive, they wantwell

they're opening up a little bit. still you have to have all your ducks in a row. >> got it. time your "trading nation. let's trade tesla, up a nice 6%. kim forest, rich ross. rich, how do the charts on tesla look >> well, brian, it looks a lot better today, it you own it, hold it, if you're thinking about buying it, now's the time. let's look short term and long term i'll handicap that for you, brian. first on the one-year chart, see 2017 really a tale of two halves the stock doubles in the first half then loses a third of its value 400 back to 300. but absent a break below that critical neckline of support around the 300 level, you're still holding tesla. and when you zoom out and look longer term, this is where you can see the potential for that upside tesla loves the countertrend rally. when the stock pulls back as it has from the highs last may, you're setting yourself up for a slingshot off of that critical support. you see that prior resistance,

which once again becomes supportive you got the 50 week moving average. so i think tesla is a buy here, brian. >> wow okay kim, what do you think tesla a buy? do you own it? >> we do not own it. i'm going to take the opposite of that trade. i look at it from a fundamental analysis sko sort of view how do i pick stocks well, i watch a stock for a long time i look at management and say, hey, what's management saying and can they execute oh, there we have it there's the problem with tesla no doubt they make some compelling cars and have great ideas, but as we're seeing once again, with model 3, they can't really get things out on time. and they're burning cash like mad. so i would say stay far away from this, but if you want to buy tesla, buy a car and enjoy the ride >> the difference between the product and the equity kim, thankyou very much. rich ross more bullish on tsla

for more information, go to our website, not while driving, tradingnation.cnbc.com "check please" is next. >> now the latest from tradingnatitradin tradingnation.cn tradingnation.cnbc.com. >> volatile markets are a good time for longer term investors to view plans on their core holdings if you're overly concentrated in a specific stock or sector, volatility will do more damage to your portfolio. diversified accounts generally fare far better when volatility increases.

"check please. >> we're going to begin with the tournament of champions yesterday in capalua dustin johnson world number one on a par 4 hits a drive and it goes and it goes and it goes and it rolls downhill. 434 yards on this par 4. >> wow. >> watch the ball go and go and go will it be a hole in 1 on a par 4? >> oh, my gosh >> oh! >> four inches short he won the tournament by 8 strokes. >> that's incredible. >> it was in the air forever. >> i know. >> he is one of the tour's longest hitters. >> incredible. >> holy snomokes. news broke in the middle of the show that jp morgan -- go pro hired jp morgan to consider its options in terms of maybe putting itself up for sale take a look at the shares of the company. they moved higher but still, even with that announcement, deep in negative territory after

their big announcement in terms of their quarterly miss. >> there's a possibility that no one wants to buy them. >> right that's the issue >> yes >> mine is the smartphone deb e debate it's getting a lot of attention. i think whatever side you're on, i think this discussion, this debate, about smartphones and apps and kids and teens is not even the first inning. i think that there's -- this is going to be a national debate for years, and you get a lot of comments on twitter, raise your kids right, my kids are great and you're adults. if your kid's not 10 years old now, it's hard to understand what we're talking about. >> phone companies should be terrified we were talking about smoking and phones -- >> in the same -- >> in the same sentence. >> don't smoke a phone don't smoke a phone. ever >> unless you're really mad at it. >> again >> but it is -- there are lots of addicting kinds of behaviors that you see. >> completely. we're addicted and we're adults. we didn't grow up on that. >> see you later, guys >> all right tonight on "fast money," we were talking about the ethereum

protocol, how you can securitize lots of different assets out there. we're going to speak tonight on "fast" to a co-creator of ethereum, steven nerayoff and a bold prediction for the price of ethereum in a couple years thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody, happy monday. welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> i'm bill griffeth the bitcoin roller coaster in high gear again today. >> plus is this rally -- >> big minus signs here. >> now we're talking about stocks the stock market rally about to become the greatest of all-time? and a major pharma company is raising the white flag in its fight against alzheimer's and parkinson's. i cannot believe this story. we'll get to that later. let's get to the top story, though, brian was talking about it, apple and this debate spawned by investors who are urging