year to start the year of any etf domestically strong global growth, increasing inflation, great for industrials. >> good stuff. jimmy. >> i'm 100% with mike on citi group. >> okay. weiss. >> industrials of engineering construction jec. >> another big day for the industrials. good long weekend everybody. "power" starts now i'm melissa lee here to talk a rally on the best start to the year since 2003. major averages up 1.5% this week alone. where to put your money to work right now. fixes facebook, mark zukckerberg making sweeping changes. facebook stock down 4% right now is trying to do good socially undermining doing good for investors? and cars with no steering wheel and no pedals, really? gm says get ready for we'll take you for a ride buckle up. "power lunch" starts right now

welcome to "power lunch. i'm michelle caruso-cabrera. melissa said strong rally to end the week, the dow, s&p 500, nasdaq, russell 2000, dow transports all hitting record intraday highs look at the dow jones industrial average, dow 25,000 is so last week we're 250 points away from dow 26,000 second straight week of gains, check out soft om movers within the averages amd downer today taking a hit. the company says its chips are susceptible to the specter security flaw. it's off 1.5%. that flaw lets hackers steel sensitive information. gamestop tanking about 10% retailer posting strong holiday sales, however, they took a big charge on iphone x related problems first ipo of the year, first energy ipo of the year liberty oil field services soaring about 30% on its debut today. the ceo's going to join us in just a few minutes tyler. michelle, thank you very much welcome everybody.

i'm tyler mathisen let's tell you what else is happening at this hour the national retail federation says holiday sales rose 5.5% in 2017 that top forecast strongest gains since the great recession. sources tell cnbc that nordstrom expects to resume its efforts to go private this year, but challenges still remain. and amazon's jeff bezos will give $33 million in college scholarships for daca students in the u.s that grant will fund about 1,000 scholarships brian. tyler, thank you i'm brian sullivan well, the energizer bunny rally keeps marching on. this officially one of the best starts to a year for stocks ever let's get to bertha coombs with more on what is driving this pretty incredible rally, ber tha. >> it is pretty incredible i was just talking to art cashin for a while ago, for the rally hats i think they have to have the milestones in velcro now because they're coming so quickly. today we have biotech and

industrials leading, real estate, utilities and telecom are laggards but not by a whole lot. thanks though really focus today getting earning season off to a bang j.p. morgan seeing record investme investment banking fees for the year pnc selling off of a record high as well. loan growth a little disappointing. wells fargo also slipping, but overall the banks are bullish on the tanks, none more so perhaps than blackrock saying saw $1.2 billion tax benefit from the law now has $6 trillion under management investors continuing to flood into etfs. regional banks though have really been the best gainer so far this year. and they are likely to see some benefits from the tax bill and rising interest rates. having gained so much we've got bb & t, comerica and others hitting highs.

as michelle noted first ipo of the year liberty oil field services on the day boon pickens hanging it up, they have a pretty strong debut after having priced well above the range at $17 a share. back to you. >> all right thank you very much, bertha. earnings contributing to the economy, are there dark clouds on the horizon strong economic numbers forced fed to raise rates faster than expected steve liesman joins us now wow, that good. >> it could, but markets not seeing it much as a dark cloud, more of a whisp of cumulus all of that has dallas fed president robert kaplan thinking about ratethree rate hikes this year, maybe more. >> my base case is still that we should increase rates three times this year. i probably have a little more

stronger conviction the three times, not less than three times is appropriate it's possible it could be more than three times, but that's still the base case. >> for mark chance of more rate hikes looks to be eclipsed by strong retail spending in fact, the national retail federation says this was the best holiday spending season since 2010 with a 5.5% gain. economists think the u.s. economy now grew 3% in the fourth quarter for the third three-handle in a row. here's the cnbc rapid update after the inflation and retail numbers this morning 3% dead even up by 0.4% because of the numbers this morning with a range of 2.8 which you can see bank of tokyo and there's gdp 3.2% it was the data this morning that caused mar to rethink what michelle was talking about the path of rate hikes could be somewhat steeper here are the probabilities we could be looking at. 84% for march. it was 70% a week ago. this is interesting, june is 55%, but it was august last week that was the 50% number.

so that rate hike has been moved ahead now by a month and before that it was in september. now we have this what do you call it a 43%, 44% probability for that third rate hike in december even a 13% probability for a fourth rate hike it seems as long though as the data and earnings are good the market will remain untroubled by those rate hikes and those clouds on the horizon. >> yeah, i'm surprised to see the dow up 190 points when clearly the data drove expectations for even higher interest rates. >> think, michelle, about what robert kaplan's talking about is the outside of his forecast. four rate hikes, a percentage point, what has the market -- the long bond and rates that matter in the economy done in the face of these higher rate hikes from the fed mostly yawned. it has not meant a huge -- >> 1% or even less than 1% at this point would get you to an interest rate on the 10-year yield where you start rethinking valuations equity risk premiums change. >> right. >> once that ten-year yield hits

3%, or jeff gun dlach said -- >> can i throw in another wrench which is rebalancing if you're like me and get to a point where stocks go up to a percentage of your portfolio that's higher than you thought, what are you supposed to do? sell stocks and buy fixed income that has been a constant stream into the fixed income markets here this rebalancing. so some people go crazy and they let their portfolios get out of whack, but some people have some discipline out there. >> you're suggesting that discipline will keep lower. >> exactly and you have not seen the full fed rate hikes translate right into the long end. >> even if they go low it could be because the economy is good, which means earnings estimates could also rise. >> we're seeing that right now. >> so the valuations -- >> in '94 the fed raised rates 2.5%.

>> right. >> they raised rates by 2.5% in '95 the dow rose 33%. >> i don't want to disagree with melissa to the extent three is a big fat number that's the handle on the ten-year people will be attracted to that that is accurate. >> a lot of competition. >> it will provide some competition but then wrapping on what brian said if the earnings continue strong. >> if you believe that it's sustained earnings growth and not a one time earnings adjustment, which is what a lot of people -- >> are we sounding a little pessimistic or cynical >> no, no. >> just playing the option. >> no, i know. i'm saying the bulls on the street are double digit earnings as far as the eye can see. i think you're right. >> let's talk to one market watcher who is a little more cautious and one who is a little less so right now. chief investment strategist with oppenheimer management, jeff carbone co-founder and managing partner with cornerstone you've heard the conversation just going on.

john, let me start by asking you, your call for the s&p 500 is 3,000 in 2018 we're 200 points away from that right now. that means we're almost there, basically. and you say you get a little nervous when everybody moves to your side of the boat chrks you seem to think they are doing. >> well, tyler, we can't help but think that what we've got right now is a start of the year what's there not to like type rally. and by that i mean earnings look good, the economy looks good, there's a favorable impression related to tax reform and you have the beginning, we saw that in the fourth quarter and it's extended into now, the beginning of what we believe is bears, long-term bull market bears and skeptics of the bull market are beginning to capitulate, not quite by the boat load yet, but you've got a lot of that happening. that said, we've got to think this market could get ahead of

itself if it keeps at this pace. you'll laugh when i say this, but an opportunity to justify profit taking where people don't feel they're missing out if they take a little money off the table, we're not looking for an extended pullback or a heck of a lot of drama other than that what might come from perception of a day that's negative just two days ago the s&p closed down negative 0.11 of a percent, 0.11%, and everybody was acting like it was a correction you know so you have to watch for that. but fundamentally things look good. >> jeff, let me ask you for your reaction and i note that in my notes you seem among other things to be diversifying not necessarily away from u.s. equities though you do like international, you do like opportunities in europe and japan, and you do like some

of the value plays you detect in energy, mlps and the like. >> absolutely, tyler i think everything that everybody's talking about even with steve earlier, we've got a perfect storm that's being created. when i say perfect storm, we've got earnings right now coming in from the north we've got tax reform coming in from the south we've got economic data coming in from the east and then we have just the overall inflation in the fed reserve still in very accommodative fashion. so we have this collision coming together that it continues to push the market forward. and it's all positive data that we're seeing and there hasn't been a real catalyst for us to see negativity so what i've been doing with my clients and our portfolios has been kind of just doing exactly what john was saying, kind of rebalancing a little bit large growth has continued to have some big, big wins over the last few years so starting to look at small caps in the u.s. and small and mid caps who could also be some

very -- could be the benefactors of the tax reform that just went through with the repatriation of assets overseas i'm still seeing better valuations overseas in europe and japan. so doing a little bit of shift -- continuing to shift over there and then emerging markets, yes, had a great year but there's still plenty of opportunity, i believe, as the global economy continues to move -- the momentum continues to move that shift around the world and we're all feeling pretty good wouldn't be surprised if we do see a short-term pullback at some point i mean, i think like everybody's been talking about, the question in everybody's mind are steve and melissa when they were talking just a few minutes ago kind of that how much higher can this market go, you know, the question really is no one knows however the economic data, the earnings, the tax reform, just the global pressure we're seeing, positive pressure, is continuing to move this market positive. >> we've been talking here on the desk that this is going to be a very, very interesting year it's now not the prospect of tax

reform we have tax reform and we have companies that are performing very, very well gentlemen, thank you very much we appreciate it. >> thank you >> thank you. weekly rig counts just out jackie deangelis at the commodity desk with the numbers. >> u.s. drillers added ten new oil rigs this week taking the total up to 752, that's up 230 from a year ago this according to baker hughes. this is the first week in five that oil rigs were added, which is interesting because oil has found new support over $60 a barrel as prices have been on the rise u.s. drillers seem to remain a little conservative, cautious it's possible this number means the tide is turning but maybe too early to make that call. we did start the session negative in terms of oil prices. they did turn a corner around noon and they are up 31 cents right now. back to you. >> jackie, thank you well, facebook shares are down big. the company once again making big changes to try to combat fake news, but will this be short-term pain for long-term

gain, or real trouble for facebook you can see facebook in the lower right corner, most of the rest of the nasdaq 100 is in the green today. stocks, you might have heard about this, they continue to rally. amazing. "power lunch" will be right back 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 with the extra third rowr... of seats. they think it's theirs. look at them, they have no idea! it's not theirs. it's mine. mine. mine. mine.

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welcome back facebook making sweeping changes to its news feed the goal is to limit how much so-called fake news that users see, but we know changes to the service always seem to aggravate

people is it worth it josh lipton joining us now from san francisco. josh. >> michelle, on facebook you're going to start seeing more photos of your friends' birthday parties, maybe fewer viral videos though and posts shared by publishers. mark zuckerberg saying we're making a major change to how we build facebook i'm changing the goal i give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions zuckerberg says this could have a short-term negative impact saying i expect that time people spend on facebook and some measures of engagement will go down but i also expect the time you do spend on facebook will be more valuable. and if we do the right thing, i believe that will be good for our community and our business over the long term too now, another question, what does this all mean ultimately for publishers president of the news media alliance whose members include "los angeles times" saying i

think that news is going to remain highly popular on facebook because people who always want to know about the world and their communities, this change does highlight however the power of facebook to decide and alter the kinds of information that people are exposed to guys, back to you. >> thanks so much, josh lipton the news today hitting facebook stock is now on pace for its worst day since september. its worst week since december 1st. joining us on the cnbc news line is youssef squali, thanks for phoning in we appreciate it. >> thanks, melissa. >> you think facebook is playing the long game here >> i absolutely think so i think facebook is doing this from a position of strength, not weakness that's really important. i think they're basically taking advantage of the fact they're in a very strong financial position to do what's right for the user who ultimately is their top priority it's not necessarily the advertiser the advertiser will come if you have the user, but if the user

goes away, then you don't have anything. >> so you do expect a hit then in the short-term at least to ad revenues, which is majority of facebook's total revenue. >> well, i think the jury's still out on that. i think we may or may not, it really depends on how aggressive they do it, number one and number two, it depends on the response of the advertisers. i think josh was right in talking about how facebook has become a must buy for advertisers with over 2 billion users you can't really do without it so to the extent that ads become more relevant, even more than before, then advertisers will want to pay even more for them because they convert better. so, again, the jury is still out on a revenue standpoint we're going to see a hit i can tell you just looking at consensus estimates for '18, we're looking at about a 35% growth, that pails with the 45%, 46% we've seen this year -- last year, excuse me. so we're already assuming some deceleration but they come in at

32 or 37 or 38 so jury is still out. >> what do you expect to get clarity on, just what they're going to do with the algorithm what i read less likely to see content from publishers, brands and celebrities in their news feed na means facebook will make a choice even though those groups have paid some kind of advertising fee, they're going to choose not to run those in the feeds as often, not -- they're going to forego that revenue. are they ever going to tell you or us or anyone just how they're working that algorithm or we're going to have to watch that play out? >> unfortunately it's going to be the latter. we're going to have to track it to try to count literally how many ads they have in news feeds. i can tell you that generally their ad load has been at least in the u.s. as high as 15% plus. we expect that to come in. and, again, the question is what will pricing do. if pricing is more than offsetting decline value,

revenues decline we expect very short-term we may have some dislocation in the revenues and to a certain degree the stock is already telling us that's going to happen with it being under pressure today at 4% or so. >> what about the publishers, the "new york times" out there, the people who are trying to get their product in that news feed, what does that mean for them in terms of their ability to reach the facebook audience? is it going to hurt them >> well, it's going to be harder for them to reach the audience unless they pay more and that goes back to the price issue i raised earlier. >> is it possible, youssef that facebook adjusts a little bit? the ad space is pretty much full but the ad load for instance on instagram is not, messenger is not, can they adjust to make up for the revenue shortfall on a facebook platform, if there is one? >> yeah, to a certain degree i think they could still relatively small accounts by about 15% of the company's

overall revenues but the ad load is relatively low. the pricing is even higher so, yes, they could, but it's not going to be immediate, right? it's going to take a while, particularly for the other properties i think you could see their ad load on instagram go up relatively quickly they decide to do it i think it will take at least several quarters. >> youssef, thanks for phoning in >> thank you. would you get into a car with no steering wheel or brake pedal? you might say no today, but general motors is hoping some day you will be happy to sit back and let the car do the driving. i know michelle will e te odrerssars next on "power lunch." i realize that ah, that $100k is not exactly a fortune.

well, a 103 yeah, 103. well, let me ask you guys. how long did it take you two to save that? a long time. then it's a fortune. well, i'm sure you talk to people all the time who think $100k is just pocket change. right now we're just talking to you. i told you we had a fortune. yes, you did. getting closer to your investment goals starts with a conversation. schedule a complimentary goal planning session today.

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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. nchs if you are interested in autonomous cars, perhaps here's a question if the car in the future is not going to have a driver, then why does it need a steering wheel or brake pedals they are good questions. phil lebeau hopefully has some good answers. >> brian, in the words of general motors executives, there's no need to have a steering wheel or pedals if you're not going to have a driver and that's why general motors has given us a first peek at a vehicle that it hopes to deploy by 2019. this is an autonomous drive chevy cruze, no steering wheel, no brakes. they have petition to the government for approval to manufacture and then deploy this and here's the game plan from general motors they are building a fleet of

these autonomous drive vehicles. and we had a chance to test one of these it did have a steering wheel at the time, in san francisco, it's part of a ride hailing service gm wants to start in 2019. and the president of general motors believes there will be people who will want to take a ride in this vehicle >> we've seen these vehicles getting deployed first of all in a ride share environment and that's what we're aiming to do in 2019 obviously having maximum space inside the vehicle available for passengers as customers is a benefit of what we're doing here. >> and take a look at shares of general motors, remember they will be giving financial guidance next week but, guys, the most important thing to think about as an investor is if it's a ride hailing car, you want as much space available for passengers, for anything they want to carry. and you won't have the cost of a driver so you don't need a steering wheel there. that's why what we're seeing with general motors, we're eventually going to see this from other tech companies, other

automakers, other ride sharing firms as they develop these types of vehicles over the next five to ten years. >> i hadn't considered the question, but it makes so much sense, actually, phil. thank you. >> you bet all right. first energy ipo of the year, first ipo of the year, shares of oilfield liberty services soaring 30% today. the ceo joins us next. and boone pickens hanging it up after nearly 70 years in the industry more about that when "power lunch" returns trusted choice independent insurance agents offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work. announcer: to find an agent, visit trustedchoice.com.

breaking news now out of washington kayla tausche has it kayla. >> tyler, president trump has bought himself about 90 more days in his seeking to strengthen the enforcement of the 2015 iran nuclear deal according to senior administration officials, the president will move not to reinstate sanctions as part of that deal. that will effectively keep the u.s. as part of the joint comprehensive plan of action that was agreed between the u.s. and its european allies. these officials said that the u.s. will continue what they call quite far advanced talks with european allies over new

triggers or guardrails that will run supplemental to the iran deal that will be a stronger set of guardrails to keep the country from building up its nuclear capabilities in addition to that, the president is still looking for congress to add stronger measures to its iran nuclear review act and among those guardrails that the president wants to see they want that to deal with the sunset clause. they want it to deal with a whole host of issues that explicitly state it is unacceptable for iran to build up these capabilities. so for now the president is not reinstating those sanctions. senior administration officials called this the next step in the white house's iran approach, but we'll see how those talks fair with european allies and whether they are in fact onboard with the white house's plan to add new protections into this deal in addition to that, we should note that treasury has designated 14 new entities for sanctions calling them the

subject of serious human rights violations of course this comes in the wake of the unrest that we've seen in iran over the last couple of weeks and is just a lengthening of the list of entities already subject to sanctions from the treasury department. so more as we have it, but that is the president's decision ahead of this 90-day deadline that he faces from congress to certify or decertify this deal back to you. >> kayla, thank you very much. to sue herera now for a news update sue. >> ty, thank you very much here's what's happening at this hour everyone. puerto rico's governor is calling on washington to grant people on the island full u.s. citizenship. he said the majority of puerto ricans support statehood and welcome the opportunity of having the full rights and privileges afforded u.s. citizens >> the u.s. citizenship represents opportunity it represents equal treatment. it represents hope

it represents democracy. >> every state except hawaii is experiencing widespread flu. the cdc says the main strain circulating now tends to be more severe especially in adults over 65 and in young children the vaccine is estimated this year to be about 30% effective and president trump may have canceled his trip to london to open the new u.s. embassy, but that did not stop his wax work figure from making it there itself london moving the trump wax work outside the u.s. embassy that is the news update this hour melissa, back to you. quite a likeness thank you, sue sue herera let's get a check on the markets right now. we are higher across the board over major averages in fact hitting record highs, same goes for dow transports as well as russell 2000 s&p we should note off to its best yearly start since 2003 seagate technology, kohl's, motorola all leading the way there, merck and boeing meantime

leading the dow. tyler. to the bond market rick santelli tracks the action at the cme rickster. >> hi, tyler you know, an intraday ten-year tells you a lot of information about 15 minutes after the data today at 8:30 eastern we popped once again to 2.59 level and backed away. look at a one-week chart you can see this has happened a couple of times as the crow flies tens are up one basis point on the day, seven basis points on the week and they still haven't taken out that all-important 2.60 to 2.63 resistance we are hugging at the top of the range. two-day of the dollar index may be much more exciting. in those two days low to high range a penny and a quarter, we're now at the lowest levels should we close here since the very end of december 2014. so over three years. the same data applies to the euro versus the dollar boy, look at the ground low to high it's covered in two days.

119.50 to 21.50, two euros, you don't see that often these are significant moves in foreign exchange and they really do in a way tell the fed, listen, you're tightening and the dollar isn't rallying. at one point that was their biggest worry. they should make hay while the sun shines sully, back to you. >> rick, thank you very much meantime big news in the oil hedge fund world legendary oil man and trader boone pickens is deciding to call it quits. the hedge fund since he's run since '96, he's 89 years old, but he's not totally outd of the investing game he's shifting the fund to a family structure in his career he's watched oil go from a few bucks to $150 and back down again. he launched the pickens plan he helped take part in eight companies going public on a personal note i know boone's watching right now, boone, hope you're feeling better. got to spend a lot of time with boone actually did a show from his trading office, michelle, in dallas a few years back. hope he's feeling good i sent him a little gift

he knows what i'm talking about. we hope to see boone again >> we always enjoyed his contributions here to cnbc there have been many extensive throughout the decades. >> absolutely. so, boone, be well we'll see you soon i'm coming to dallas all right. it is the first ipo of the year, and if this is any indication, it's going to be a good year shares of liberty oilfield services soaring 28% right now we're joined in a first on cnbc interview by christopher wright, chairman and ceo of liberty oilfields services, lbrt new publicly traded ceo, by the way, a rich guy. i looked at your s-1, i know how many shares you own. congratulations to you and your team and your employees. >> thank you very much yeah, obviously it's a team effort we got a great team of people, passionate people that have together built a good business. >> now for the hard stuff. on many of your competitors have gone bankrupt, which is good for you now. oil's up, which is good for you now. fracking's a tough game. we've been here before how confident and how exposed are you to the price of oil? we go to 40, are you guys in

trouble? >> not at all, not at all. but you're absolutely right. it's a cyclical business any time you build an asset that lasts a long time, it's a cyclical business. we laid no one off in the last downturn, 2015 and 2016 we grew business both years of that downturn business was a lot tougher but not a risk to liberty. in fact it was an opportunity. >> how much have you been helped by the bankruptcies of almost literally all of your competitors? >> certainly it helps. we don't like that kind of help, bee b but, yeah, there's been a shrinkage in the competition. >> you raised $142 million, what are you doing with the money >> the deal was upsized so it was $200 million. >> oh, got it. >> basically retire our debt this takes it to zero. we're significantly cash flow positive company, so we didn't do the deal actually that we needed extra capital we just wanted to bring the company public to allow ownership base to change with time. >> and also sounds like solidify

the balance sheets to brian's point about what can happen in this industry if crisis. >> you bet. >> you brought this with you you brought shale. explain why you brought this and why. >> this rock is what's changing the world. this is saved consumers in the world through oil and natural gas $1 trillion a year the last three years. >> when you do hydraulic fracking, what happens to this rock >> so with water we make small cuts, fractures that go through this, hundreds of feet tall. >> water can cut through this? >> high pressure. >> of course. >> hydraulic, it fractures the rock slowly, not dynamically like smashing it it creates these plains of fracture through it that allows the oil to seep only a few inches to that fracture, flow through the fracture and up to the surface. >> there's oil in here >> yes that half of u.s. oil production comes out of this rock if we poured water on the top, it would evaporate before it would be able to flow through that rock. >> you think oil's going to fall back again >> oil goes up, oil goes down.

>> yeah, but when oil goes down, fewer people drill for new wells through this stuff, which means they're less likely to need a fracturing service such as yourself. >> yes we've had maybe six quarters in a row of significantly improving business, more active, more pricing. will that turn the other way some day without a doubt. >> how do you plan for that? they always say the cure for higher prices is higher prices, because people get greedy. >> the cure for lower prices is lower prices so, yeah, the business will always be cyclical we grow almost at a more conservative clip when the business is really strong right now. the outlook for the rest of this year i think is quite good. >> you excited about what president trump has been doing lately in terms of allowing drilling where it has been allowed before >> you know, almost all shale development right now is on private land so very little is on federal land with the trump administration changes, maybe they'll be a little more on federal land, but our partners are predominantly

private landowners. >> is it a good thing for the economy and industry >> sure. increased production drives price down it builds our industries up, it allows america to have a competitive advantage. >> we would have thought our first ipo of the year would have been a software company or cloud computing or social media, it's hydraulic fracturing chris wright, liberty oilfield services, congrats to you and your whole team. >> thanks so much for having me. in fact, we are a technology company, we're just tech nerds that do fracking. >> that's why you brought the shale to explain to us thanks so much bitcoin bouncing back today after a rough week with several countries cracking down on crypt currencies could the u.s. be next we'll tell you what secretary mnuchin said about cryptos coming up, shoe candy, shoes and candy. at least the ne unamsods good, what about the rest of the company? that's next here on "power lunch. mom and dad got a new car...

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bitcoin bouncing back now fre treasury secretary weighing in saying cryptocurrencies could be used for money laundering. seema mody joins us with the latest. >> hey, meless u lisa. the selloff accelerated after south korea announced that it is drafting a bill to ban all cryptocurrency trading that's when bitcoin broke below 14,000 it's now trading just around 13,500 as investors try to digest the latest warning and those comments from treasury secretary steven mnuchin now, the prospect of further regulation out of south korea hurt ethereon as well. more than 10% is traded in south

kore kore korean yuan. it's up 30%. look at ripple while up-to-date still down for the week which has brought forth an interesting discussion about diversifying into different cryptocurrencies and the competition that may pose for bitcoin guys. >> thank you very much, seema. i enjoyed all your questions yesterday when i was at this bitcoin mine in washington state. it struck me when i walked into this room with 1800 servers just humming at full pace it was extraordinary to see visually. >> was it like a warehouse >> it was a warehouse, yeah. it was a warehouse. >> not underground. >> no, not understoground. >> it was a joke. >> but extremely close to a substation which makes it profitable because energy doesn't have to travel that far to get to it. >> sorry, tyler, go ahead. >> why did it look so sort of improvised and hastily put together i mean, it -- it did not look like a beautiful ibm

installation. >> no. it certainly didn't. so it's not actually improvised. this is his third one. and he thinks he's finally gotten the configuration right. >> is he the miner >> absolutely. it's his company he keeps the coins -- actually he sells the coins so he can buy more servers to reinvest, we're talking about who we see there he's an electrician and did three iterations before he felt he got the proper fan controls correct to keep the temperature the perfect level so that way all of those machines run 24/7 with almost zero down time, which is incredibly hard to achieve. >> while you were there did he hit any blocks i mean, could he see, boom -- a bitcoin is released about every ten minutes. >> yep. >> and everybody started working together on this ledger getting block, block, block, how is he getting? is there days where he isn't getting any? >> he says he gets five to seven per day.

he's trying to get up to 50 per day by july because he's going to add a lot more electrical power. he's going to get to 42 megawatts. he's only at 7.5 megawatts chrks is the equivalent to power 11,000 homes so he'll go up to an even -- keep in mind this utility up until now was only producing about 200 megawatts. so now he's going to go to 42, another miner there is going up to 30, they got other people coming in for 100 megawatts. it's incredible. >> what are the redundancies here what if the power goes out >> that's a good question. i had so many questions for him, i didn't ask him that one. but i'm sure he thinks about it. by the way he's a master electrician, right so he thinks about these things intensely. >> can he come and rewire my cable box? i need somebody to do that all right. let's go -- speemg e speaking of power, let's go to power pitch where entrepreneurs have just 60 seconds to convince a panel of experts that their business has what it takes to be the next big thing. >> i'm kara mac, creator of shoe

candy. i've been in the fashion industry for over 25 years designing, merchandising and sourcing and my business partner is anne, marin holds an ivy league mba. we have a line of shoes instantly customizable from heel to toe we are on a mission to disrupt the traditional shoe market which is a $24 billion industry in just the u.s. alone our shoes price between $139 and $299 and our accessories, which we call candy, price between $30 and $75. all is made in brazil or the u.s. we've sold north of $200,000 since 2015 and for every dollar spent on shoes, another 30 cents is spent on accessories so what other shoe company can say you can fit five pairs of shoes in your purse. >> welcome to today's power pitch. i'm dominic chu. you just saw shoe candy's pitch. so let's meet our panel. joining us here onset angel

invest investor alicia and kelly keenen and early stage investor andrea turner moft. kara, you're in the hot seat. >> i loved hearing about background and revenues and pricing, but i didn't hear anything about your patent, so i have to give you a b. >> kara, interchangeable heels and components seem like such an obvious idea why don't you think the big brands have already done this? >> one way i would look at it is they just want to sell the last. but we're in a different world right now. we're in a customer centric type of world especially with millennials. they want an experience. and to me the time is so right right now. this is like legos for ladies. it's fun you want to be able to play with it. >> i'm going to give you a b-plus because the shoe industry has so many variables between brand loyalty and look so what i want to ask you is what does your pricing reflect about the kind of customer you're hoping to attract >> we look at our market as a 35

to 55-year-old woman, but she's a professional woman she's traveling. she's working. who needs a dozen pairs of shoes under your desk when you arrive? just have a little bag of candy and you can have something for your entire day. >> i was impressed with your pitch because i found it engaging and i understand the product. but i didn't hear enough about how you're acquiring customers and what is your plan to scale for that reason i gave you a b-plus how are you acquiring customer sns. >> for the past 18 months we've traveled all over the united states doing different pop-ups and that's really allowed us to be very personal with the customers, for them to touch, feel, try on, see the quality. >> but what's preventing a consumer from either shopping at a lower price brand and getting multiple pairs of shoes or just investing in a designer label? >> it's really the convenience, the comfort and the customization abilities about our shoes. it's making your life a little bit easier. >> tell me more about the licensing opportunities. who are you targeting to work with >> why not disney?

why can't i do jelly sandals for little girls and they can swap all the candy with their friends i think this could be like jibbits, you know, for crocs. >> okay, we heard what kara had to say, we like to know if the panels are in and out. i like a frequent relationship with customers i am going to go in. >> it is a little early for me and i like to see what they do with some of the options for kids, i think there is a lot more, for now i am out but i am looking forward to see what they do >> i like the innovation on a fairly stale industry. the patent is compelling, i would like to see more, for now, i am out >> one in and two outs kara, what's your reaction >> well, i got great feedback from fabulous women in a space that i am happy to be apart of thank you very much.

>> thank you to kara and our panel lists, that's today's "power pitch. now it is time to find out if you are in or out on shoe candy. follow the conversation on twitter using the #powerpitch and for more head over to powerlunch @cnbc.com >> we'll have that name and three otheanysr alt calls coming up in "street talk the chase mobile app changed the game for us. we had this plan to go to the hottest place on earth, harness the energy from the sun to develop popcorn. we thought we had the right equipment, we quickly realized we needed more. we were able to send a wire transfer to a local vendor and get more solar cookers delivered, right here in death valley.

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time for "street talk. first stock here is target target is up about 15% so far. getting their price boosted by mkm to $19 a share a good target of target raise guidance was from tax reform an increasingly promising digital and omni challenge >> over the past 90 days

the average retail stock is up 18% and some of 40% or 50% >> i believe it. >> stock number two, coca-cola, upping it, they got a $55 target looking poised to turn things around they believe all the bad news are pricing in if inflation kicks up, the stock should enjoy multiple expansions he's optimistic long-term, the $55 target is about 15% upside >> dick's sporting goods is getting an upgrade inventory levels are coming back and increase in investment spending already reflected in the market number. there you have the boost there for dick's. >> it has been a tough charge. >> it has been for a long time

>> stock number four, codr, cloudra, revenue growth of 50% the average reoccurring revenue of customers more than a million dollars. a high management team again of 18% upside of the $2 target even with today's gains kind of a roller costar. >> 18% over the past year. >> another 18% seen. tyler, over to you thanks very much guys, with one bad word that president trump killing immigration deal wipe out the good feelings overall the companies giving bonuses to their workers and what do you get a man who already has $100 million for his

rta bihday what's on jeff bezos' wish list as he turns 54 the second hour of "power lunch" is next. any object. any surface. if you've got a life you gotta swiffer

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here is what's on the menu carry on, the markets may be at a new high the market still has a plenty of juice left, their call on how they're playing it ahead facebook's dilemma, facebook's struggling image and are you loaded up on student loans? you may want to consider moving to kansas. we'll tell out the state's new plan to build its work force atra attract the best and brightest, "power lunch" starts right now all right, i am brian sullivan, happy friday everybody. despite all the big headlines, it is another big day for your money. all the stock index is hits a new highs. can i get someone to put in one bio order for a dow diamond so i can say rough 200? anyone 199 points

if you oconwn any of these four stocks, i want you to take your family to dinner tonight boeing, jp more januagan and und energy all is hitting a lifetime highs.net fli highs. l3 technology and rockwall collins and consumer names, marriott and best buy all at lifetime, all time highs wow, lets get to bertha coombs at the new york stock exchange >> we are likely to hit 6,000 next week on the dow a positive tone. small caps evolving to quite a melt up led by regional banks. strongest performance and a lot of them is going to be reporting next week. large cap biotech is getting a nice news from the jp morgan and

healthcare conference, industrials up 2.2%. the transport today of an all too i am high. real estate, the big loser for the week and the day take a look at, rather 150 in the s&p 500 launching new highs today in colliding a lot of retailers and last year's big la laggers are big winners for the new year the national federation reported better than expected and 5.5 increase for holiday sales best buy and amazon also at a historic highs and 52 week highs for target and the healthcare s & p seeing an all time highs today with health insurers extending to a

new high including anthem and humana and evercore. melissa. >> all right, bertha, thank you. >> here to explain, our new head of u.s. equity strategies. she's chief of equities strategist over credits. laurie, it is great to have you with us, congratulations on the new gig. will this leadership continue to be the leadership for the careecareeyear >> i think it absolutely will. >> those are the big winners and tax reforms. does it mean that the earnings are higher than what we have

been seeing in the market. do you think these are mechanical revisions or do you think there is going to be lasting growth after this first year >> well, i think there is an improvement in animal spirits so i think that helps things longer term if you look at the tax reform itself and cutting corporate the issue is what are companies are going to do with the proceeds if they do things like cap x and mma. that can have a longer term. >> why should value up just because it is turned or interest rates are going to rise or hurting the momentums or what >> if you think from a bottom up perspective, if you take it from a bottom up perspective, financials -- >> i sort of worry of the fact where is all this money coming

from are your client or institutions are going to run out money after having invested so much. >> there is general carbsh on t sideline there >> there still is? >> we like to look at equity exposure within households if you look at that data set, we are not back, we have been the highest since we have been for the tech bubbles >> they're not an all time peek yet. they still got a way to go >> do you remember the actual number there i would be interested in the content. >> it is equity ownership as a percentage of a total. 10% verses 14% >> it is just basically what they own regardless of how they're financing. >> in the note, you identify six drivers of equity. i am not going to go through all six of them. we don't have time of that

there is two that interests me, one is deals and cash. you expect more deals this year and why and where? >> we are talking about everything from buy back activities to dividends and to mma. i would put mma a little lower, you will see more buy backs, i think you will get a little bit of both. >> the other one is evaluation which you are moving from negative to neutral, does that mean that you think that the values, that the ease are going to come up and make the p's seem more realistic. >> we don't think tax reform is going to make it look cheap. we do think you can move from a 19 point four times multiples which is what we are calculating right now on a bottom right basis. >> that's because the earnings will grow? >> exactly everybody expects earnings to go up because of tax reform but it is not in the e yet. frankly because the tax reform plan that went through the last

minute, we did not get a lot of details. i spent the week heading into christmas waiting for transcripts. >> god love you. >> god love my family. >> we sat there and we read everything we could find about what companies were telling analysts how to model this, they were not getting specifics because they did not know. >> they didn't put it into their estimates. they might have said something >> there are more that's starting to do it now because companies are being forthcoming. you could not do it in a responsible way. >> i am going to tell my son next year, he's getting no presents >> i got an s 1. >> it is not 10-qs but you got b's. >> laurie, thank you president trump announced he's extended the iran nuclear deal on monday, he was riding with positive news the company giving

bonuses and raises due to tax cuts by friday, white house is trying to contain, that's today, containing fallout of the president's comment of immigrants of haiti into african nations. joining us is hugh hewitt, it is good to have you here, it kind of relates to the first question what do you make of all the drama of what president trump allegedly said or whatever he said in that meeting >> the comments were unfortunate of whatever they are we are not sure what they are. senator purdue did not remember them specifically. senator durbin confirmed they were terrible and awful and senator graham and others have said nothing we can gather that he used very awful language with regards to countries in africa, not so much

about haiti or el valve contasar we can figure it out later a week ago when i was here, we are talking about michael wolff's book a week later we are talking about the president's comment of various types of countries it does not matter to most of the country's investors, the people that are watching the show right now he becomes detached from the economy and twitter feed does not matter the president's rhetoric is absolutely divorced from anything investors do think or say. >> we have seen that >> they have watched very carefully. >> we have seen that since the election day >> the stocks market started to move the day we learned he is going to be president of the country and it has not stopped since. >> let me ask you this, does what he says in the meeting, that's quite vulgar, is that going to hurt some kind of deal

when it comes to daca and immigration, is this more of a reason to have their hair on fire >> well, it is great for television ratings to talk about this it does not change the under line fundamental facts between 800,000 people of the country, they lose their protection against deportation. if the democratic party wants to deliver for them, they got to get a deal done. they're security conservatives they need the wall and security. it is the deal that's too obvious to fail in my opinion. what came out in the purdue cotton statement issue of the president's remark was a signal to everyone, the deal is not dead but people are out to get back to work and focus on it, not on the president's language. >> you want to put a probability on it? >> it is better than 50/50 if democrats suffer and

republicans suffer, the deal does not happen. i don't think the government is going to shut down, i don't think democratic party wasn'ts to be in the position of shutting down the federal government there are real people out there that need the assurance that the dream act will provide and there are real people who have to patrol that border and delivering security and stop the input of drugs and human trafficking and all of the dangers that goes to try to get across that desert there is real pressing needs that must be addressed i think the deal does get done >> do you think sufficient numbers of democrats will go along with anything that has the word "wall" in it or the president will go along with anything that does not have the word "wall" in it or what the hell does "wall" means anyway. >> that's an important question, i will use the word fencing. it works in san diego and other parts of arizona and texas it would work in the places of the border that are poorest.

i don't think the president cares what they call it in the bill it is what he would call it on the stump. if he gets border security money that allows him to do fencing, he's going to call it a win, the big "w." democrats don't care and they make sure their promise relief for the dreecamers are delivere. we got two parties that have two sets of needs that can only be served if they both get along even though this is a terrible day for rhetoric and a terrible day for the united states reputation abroad. still fundamental pressure for a deal remains >> hugh, did you read "fire and fury"? >> no, i ha. >> i have. the one thing you take from the book is this there is nobody that can convince the president to do any. maybe tom barrett, the only person that he may be listening to is there anything out there is

going to say to the president, you are taking one step forward and two steps back lay off the twitter and stop saying stuff on twitter. not only you are ticking people off rightfully so but you are making it difficult for your own party to work with you and support you because you are going to be guilty by associatio associations >> i think he listens to a lot of people but they take directions from no one i think he listens to general kelly and mattis, i do believe tom barrett had a lot of inputs as his family. i think he takes a lot of advise from don mcgahn but he keeps his own council. it is a unique court he's a party of run. there is a traditional republican party led by mitch mcconnell and paul ryan and there is the donald trump party of the coalition government in washington, d.c. the president moves back and forth the polls of

conservativism and popularism. when he touches the electric fence like he did yesterday, he does remember, that's when he stop attacking judge curiel, and stop touching the khan family. >> your words are not going to le leak out and you got to watch your words >> it is funny, we have to leave it, he has a hard time getting a really good week anyway. just a hard time having a purely good week. >> when it is set up to be a good week. >> hugh hewitt on msnbc, lets tell you what's coming up on "power lunch." jeff bezos celebrates his birthday what's next for him? we'll discuss. >> we'll talk to the analyst who made the call, plus, would you move to kansas if the state and

a sponsor there paid off your student loans? the governor is hoping you will, he will join us to explain all that and mh re iucmos coming up on pir"power lunch." we got 45 minutes to go.

the man who revolutionize the e commerce turning 54 today. he celebrates his birthday as the world's richest man.

his estimated worth is $105 billion he's also in the news today for donating $33 million for the so called dreamers. guys, here is something random but fun. put that $105 billion in perspective. he can spend $200,000 every minute for a year before he ran out of money, keep in mind, they're 525,600 minutes in a year >> well, that's interesting. >> this is what you do unusual. >> that's what insanity will do to you amazon is changing the face of retail. not a day goes by where they do not move to disrupt a new industry where does amazon go from here

deidre bosa in in los angeles. >> now by m-cam reveals that amazon is ramping up its patent activities in video connected home and augumented reality technology that would mute the echo's video mode by pixilateding the image suggesting that the company is thinking of privacy control and technology that would detect driving cars an area that amazon says they would not get into but hugely important and lucrative for a bigger player in this play keep in mind, amazon has 500 patent currently pending, not all of them will come into

flugs. many of the technology is now, of course amazon's most profitable business. >> certainly, deidre, thank you. >> reymond james down to snap of under perform to over perform. lets bring in the senior analyst are reymond james, good to have you here >> thank you for having me >> you say it is a messaging app, not a news feed app like facebook, convince me of that because i use a lot of messaging app. i use telegram and they don't feel to me like snap feels to me snap feels like an instagram and people are telling me stories and showing me pictures. >> it is still a message you maybe messaging videos or pictures but you are still messaging something. it is much more data intensive when you are messaging data and videos back and forth. there is a report this week

looking at the usage of the discovery part of the platform that we think is highly monotizable. that shows 20% of daily activities are using that platform which is much lower than we would expected we have not seen in snap yet we like to see more of that, otherwise, we think stock and in combination of issues around user growth. >> you thoeld old me what i thoi use discover but aparticipantpaa a minority there now, they're making changes to their news feed which suggests they're not going to make much money. what do you thoink of the facebook changes >> it does in and out manot makg change you will be moving higher and the ranking of your friends' stories on facebook.

facebook have been talking about this for a while and the last earning calls and you can see the last professional contents the negative would be yes, less engagement for some of those as you have more friends that you are engaging on facebook what it does to the advertising is a little less clear we have seen them reduced ad low before so far, it has not been a big change to facebook >> is this basically an implicit admission by mark zuckerberg that the news model, the one that facebook has prior today is not as valuable as thought they are inheret dangers in having that and they're inheret cost in having to release the content and that model is not what it used to be worth >> we think there are some

risks. facebook started for your fl platform of your friends and it moved away for a bit of professional contents. so i think they're looking at how we maintain a high engagement among people as opposed to being a news reader platform >> does twitter benefit from facebook changing the algorithm? >> we don't think too much we think some views where you will see less news on facebook and there will you can go to twitter. we have not seen a lot of incremental users. aaron kessler, thank you very much >> thank you >> can mark zuckerberg clean up

facebook without damaging. a place where people are free to communicate whan th communicate whatever they like we'll debate that, "power lunch" is back in two duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than $1 a day! his secret? selectquote. in just minutes a selectquote agent will comparison shop nearly a dozen highly rated life insurance companies,

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herrera. african activists and leaders say they were insulted about trump's vulgar comment about haiti and africa the president's comment were deeply offensive as mwangi says. >> we are deeply offensive by what the president said. the fea says they could contain listeria, the bars were sold at several retailers including kroger and dollar tree so far no illnesses have been reported take a look at this, a florida police officer responded to a call of a 12.5 foot python. it was in the middle of the street, yeah, i would be doing that he jumped into action and got it under control and he took the

python to police headquarters, a a python wrang ler took it away. >> i didn't know there is such a job as a license wrangler. that's the news on cnbc, we'll be back at 2

a check on the market. industrials and consumer discretionary are your sector leaders. consumer stables need utilitiy laggers today. >> why don't we check in with jackie deangelis >> crude prices is trending lower today. finishing higher, looks like we'll have $64 a barrel. two pieces of news that may push us lower and did not ten oil rigs were added and president trump extending sanction relief. the fact that prices were able to take out 64 and probably close over that level shows conviction in the trades to the

upside crude is up 4.5% the last three months up 23%, back to you. walmart beginning out this week on a high note with plans to boost higher and hourly benefits and wages sounds great, you got some good pr and then hours later, they announced the closure of 63 of sam's club stores. ten of those will remained open. so 53 stores closed entirely about 175 employees at each sam's clubs. that's 10,000 people losing their job. this is likely not the pr victory lap that walmart was hoping for every headline, walmart boosting wages and lays people off. you got this amazing story for wall march, raises, bonuses and then your sam's club just

kneecaps you from a pr perspective. how do you prevent that? >> the wonderful thing is increasing permanent wages is defined by 7,000 people letting go the timing is ridiculous >> how did it happen >> i can only look at this, you are trying to skip this one under the carpet there is no strategies here and nothing is professional about what they're trying to cover up. >> they just did not talk to each other there is separate organizations under the umbrella and i wonder if they did not -- the old business problem >> it is an absolute shaam's >> the responsibility is sam's >> sometimes the left hander does not know what the right hahn is doing.

>> tlis there recovery here he's called the fixer, is there a way to fix this? >> constantly focusing on the good news. what was the purpose behind the tax cuts spin in terms of what you gave thousands of dollars back increasing permanent wages for millions of people going on about it and give reasons why you did it and showing the examples of millions of people who are delighted to have more money in their pockets and going back to the purposes that all you have done it you got to drown out that bad news >> you run ads >> run ads what do they call them, not employees. >> associates. >> if you look at the stuff, stock reaction, oftentimes we are talking to you about a pr crisis and a stock that did see an impact. here there is no impact what so ever and it happened and it did not look good but it did happen and it is done >> i think in brands, we look to

brands a lot, we don't want to fail or dug. i think that's what walmart is trying to say to customers and invest and typically aiming to customers by what they are hearing. >> do you think walmart got over the whole tarnish things that they have gone, you put moms and pops businesses out of business. they still live the big, bad walma walmart tinge, don't they? >> yeah. >> they got a lot more work. >> they got 100 million people working at their stores. i think a lot of consumers get over bad news quite quickly and depends what you put in front of them in a couple of weeks no one is going to be thinking about this. >> my question should they care about what the media thinks, should they spend that money on ads because as long as their prices staying low

if we had the headline that walmart this did and they raise prices to pay for the wage hike, that would incur hatreds across the country. >> they did not do anything before christmas and look at where they are at. that's being a value to retailer lets switch gear to facebook, i know melissa and michelle just talked to analyst about this >> business owners are concerned, they think it is going to alienate from business. is facebook now or about to faze a relatively severe identity crisis they certainly put an red in to their business models. if you look at business, it is about its accountability, up until today it is about being a platform and generating millions of dollars of revenue and they

also have accountability to that shareholders now he said i want it as a social media media platform for my kids. >> you think it is really that big of what he did >> yeah, if you are a brand owner or an investor, you turn into a rhetorical pretzel looking at this issue. it is a huge change. >> did he told businesses effectively to go away >> essentially he has. you are going to work harder as a news publisher or a brand to get your message there that's always the challenge and with all the saturation of how you get your message home. this is more of a challenge for the marketing industry >> why not charge 50 bucks a year for the ads fee what's the point between russian election stuff and this?

>> there will be millions of people who'll pay 50 bucks a year to have an app, would you pay? >> no. >> i am not on facebook. >> that's the challenge, how you get people to pay for social media that they don't want to. what zuckerberg's done is answering the fans, and a third of the planet is using it evidence but it is certainly done it for his business done it for his business coming up, student debt is r two,that was awful. why are you so good at this? had a coach in high school. governor sam brownback is joining us from kansas he's coming up on "power lunch," don't move er free access to coaches

and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade.

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dynamic performance, so you can aggressive styling, so you can break away from everyone else. the bold lexus is. experience amazing. . next to dominic chu. >> there is a certain four letter word expletives that's been floating around in the news world today. lloyd blankfein is taking turns using that word. >> in his tweet lloyd says view

from our billing today reminds me that despite all the expletive american values will shine through. >> an interesting man in the world of wall street now weighing into the political discussi discussion back over to you >> that's a beautiful photograph actually >> very pretty >> you should have spelled it out. >> goldman does not need more problem. if you don't know lloyd blankfein, everybody is going after the poster child, whatever you think of goldman sachs, lloyd blankfein has a hell sense of humor >> he can do stand up. i honestly believe that he can do stand up. >> which is why we have to go back to the comment, when you go back to comment that got him so much in trouble, we are just

doing god's work, i swear of jim being dry. >> we are just doing god's work. >> all right, are we going to go to dom chu why don't we do that >> again, dom has more >> we do have more we want to call your attention on shares o f lows right now which are moving higher, this is after some comments and a report out of bloomberg saying that de shaw is set to build an activist position right now it is moving the stock and you can see their lowe's shares is up to 3% student loans is a crippling problem. the average debt is $29,700 per borrower if you got loan maybe the state of kansas will pay them off for

you or help you at least >> their program offers student loan repayment if you move to one of their designated rural counties joining us now is governor brownback. i want to get to this program quickly. i want to begin with today's news respectfully, you have been nominated to take a position in the administration as an ambassador at large for religious freedom. i wonder in light of the allege comments of the president yesterday, how do you feel about those comments and aboutd and taking a job in this administration >> what's actually said in that comment, i am delighted taking the job particularly on the topic of international religious freedom. it is one that if we can get it

right and a lot of places around the world, you will see -- it is a position that i am delighted to take it >> how much if at all if these remarks which have been confirmed by multiple sources that the president has denied them, senator durbin said that the language was used repeatedly if true, how much do those remarks bother you as a sitting republican office holder >>. >> well, again, lets how they play out and see what comes out from that. you know i think you got to find out what those are and we got the news that moves so fast on different things what i am focused on is doing a job as governor kansas >> it sounds like you don't want to take a stance are you going call up the president and ask him if he said those comments before you actually sit down for a confirmation hearing for that new post >> it sounds like we need to

know what actually took place. >> right, are you going to call the president to find out yourself, you are in a unique position and you could extensively pick up the phone and say hey, did this happen, i need to know before i decide to take this gig. >> you cannot just pick up the phone and call but lets see what comes out overtime i am delighted to talk about student loans. >> you are supposed to be governor right now, what's the holdup in assuming that position with the white house >> last year, the end of the year really focused on tax reform which it should there was a whole series of confirmations that did not get done at the end of the year and this is been a big slow roll of taking place in the senate and confirmations but i have been put backup and hopefully we'll move through this year >> all right, lets move onto the

rural zones issue which is interesting. i would love to have you explain how it works if i am in the mind of a young individual with a bachelor degree with some student debt, how do i make it work for me, what does the state pay and the so-called sponsors pay >> $15,000 a year if you move to one of the counties. out of state on top of that, we'll weigh income taxes for five years the effect is to get people to move to the number of counties that we have seen decline in decades. we have 3500 applicants for it the county or a sponsor pays half of that $15,000 and the

state pays the other half. the county have used it aggressively, have seen some significant improvements in their population position. >> if i am an individual who wants the take advantage of this, do i have to one, establish kansas residence and how long does that take and number two, do i have to find the sponsor who goes in 50/50 of the state or do you help me find that sponsor which can be a county >> yes, typically what takes place is somebody recruited an individual to kansas, and per se, come here and we are going to sponsor half of this for you, we are getting a lot of educators in the program, we are getting a lot medical personnel using the program. they are recruited by hospitals in to the area and they tend to contact and put the package together we are using it as a recruitment tool for the state of kansas for

the rural areas and we are seeing the rule areas that use it, some of them have gone to a population decline to a population increase and not large numbers, but they moved in the right direction. that's typically how the program is accessed. >> for my earlier question and one more, how do you establish kansas residents, can i show up and hey, i am a kansas residence now. i love lawrence by the way, what a great town that is how much does this cost the state? >> we spent about $2.2 million on payment loans last year we have to analyze that separately we had 450 people claimed the tax exempt status. mostly it is showing up. you got to have a match as far as the local sponsored ship on it it is not a complicated program.

we try to model it off a little bit like the program >> it sounds like it >> and i just want to make sure i understand it. >> come out and take advantage of the opportunity >> $2.5 millio tax revenues is that the math >> no. the math is $2.2 million in expenditures by the state just for the student loan piece that's half. the other half has to be sponsored locally. then the 450 are actual taxpayers that filed and said i moved into an area out of state, a third of our people that applied have been out of state, and i'm seeking the tax exempt status for five years. >> that's sort of separate and apart from that other. right? >> it is it is. >> governor, thank you very much appreciate it. >> we -- >> go ahead. >> we found it useful. we hope people can use it for rural areas and come to kansas we'd love to you here. >> all right thank you so much. governor brownback, appreciate it >> we are in kansas.

>> we are. >> great program. all right. amazon is up near another 2% today. more than 11% so far this year can anything derail amazon's 'ldemeum wel bate that ahead on "power lunch." 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. door buzzer hi. smells really good. thank you. more pasta. hey guys. hey! how are you?

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time for "trading nation" today, let's trade amazon. borris, max wolf f, with the phoenix group. max, the stock has been hot for years and years. do you think it will go even higher >> yeah, looks like the momentum is still there obviously they're about to get into the pharmaceutical space and monetize search inside that platform people don't always think about it, those are two enormous opportunities. doesn't look look they're going to lose out on anything they're doing now. they're going to add to it in a melt-up market, people are buying names like it's going out of style, this looks like it has legs to do. >> what do you think, boarry, yo borris, do you agree >> amazon alexa possibly in every car, amazon search as max was saying the only risk comes to them is and existential risk trump hates bezos, doing

anti-amazon tweets forever it's not a risk you can handicap there is, of course, risk, could come down on them on a regulatory front aside from that, they're executing on every possible front. e even on the creative side, they have the golden globes best tv show with the "marvelous miss maisel." >> no one is saying short it, we want to know if it's going up. in a long perspective, you remain fairly opt optimistic reminder, folks, we do two additional segments every day. got to go to the internet to find them. tradi tradi tradingnation.cnbc.com "check please" is next. >> now the latest from tradingnation..com and word from our sponsor. >> when markets get volatile it's a good idea to reduce the sides of your trades or scale in and out of your positions. taking on a position larger than you're comfortable with in order to maximize gains only increases your risk. scaling in andutanel o c hp you

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training >> that's it >> it's free >> yeah. it's limited. >> we should see if one of us can pass one of those tests. >> do you have any experience with large constrictor snakes? >> no, i mean, how do they verify that, though? i could say i own one. i mean, or i had one. >> i mean, bureaucrats aren't -- >> exactly >> mine is on retail the retail rebound is unbelievable, actually amazon, we talk a lot about it, always the 19th best stock over the last 90 days in retail urban outfitters up 57%. target, kohl's, they've all outperformed amazon. i wonder if it's a little overdone still, what's the black knight in monty python? greatly exaggerated. >> speaking of pythons. >> that wasn't -- that wasn't -- i'm a licensed pun purveyor. >> oh, god speaking of target, take a look at target versus amazon. this week or even this year. the question here is, is there a torch being handed over to target as the next big retail play is this the walmart of a year or two ago? >> that's very interesting >> that's very interesting

there. i think that, you know, the death of retail has been overstated i still like going to stores love going to nordstrom. >> home goods? >> my favorite place. >> my wife loves home goods. >> not so much for tyler, though. >> not so much for me. i stay in the car there. >> thanks for watching "power lunch. have a great long weekend. >> "closing bell" starts right now. hi, everybody, happy friday. welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> sure feels like a friday, too. >> three-day weekend >> a lot of energy on the floor again. i'm bill griffeth. another record-breaking day today for the dow, the s&p, the nasdaq, the russell, the transports i mean, everybody's in the water. and you can -- see that? everybody's ready for this three-day weekend, but they are capping off what has been an incredible market week. >> you'll hear more about the whoop-whoop later. as our longtime viewers know, that's what happens at 3:33 before these three-dayers. it's bee