>> thank you for having me. >> lee cooperman of omega. let's do final trades. >> s&p is going down 3%. >> j.d.c. >> chrw bought it today. >> the eem higher. >> midd restaurant supplier. >> thank you for having you with us >> "power lunch" starts now. >> i'm michelle caruso-cabrera after monday's meltdown, two days of triple-digit gains for the dow and have we bottomed or or is a deeper correction still in play and how your portfolio isn't as diversified as you think. and this wild ride could not come as a worst time for mom and pop investors just getting back into the market in a big way so what now? your market survival guide is straight ahead and oh, snap, the stock on fire soaring about 40%, back above the ipo twice. a surprise earnings beat but is the comeback for real?

"halftime report" starts now. >> just because we're not up or down a thousand points of the dow does not mean the markets are calm in fact, the dow has been up and down triple-digits today now right now we are holding on to the strong gains, but with three hours to go, you never know what could happen risk also coming off just a bit as stocks rise volatility gauges are falling but the vix still above 20 match.com soaring the dating site which oend -- owns tinder as more people sign up chipotle down and comp sales missing targets and it expects the decline to continue toward the middle of the year and wynn resorts and michael kors an and hasbro rallying and wynn, get to that story soon. >> >> i'm tyler mathisen breaking news out of washington, senate leaders have announced a

long-term budget deal. kayla is on the hill with details. >> this is a deal in discussion since this fall. but earlier today just a few minutes ago leadership from each party in the senate took to the floor to announce they had resolved their differences here is mitch mcconnell. >> i'm pleased to announce that our bipartisan back camera negotiations on defense spending and other priorities have yielded a significant agreement. >> what the deal does is it lifts mandatory spending caps put in place by the 2011 sequester for two years. raising military spending by $165 billion over the caps and domestic spending by $131 billion that is a significant win for democrats who were facing steep budget cuts to domestic spending from the trump administration. it also includes other elements like disaster relief funds for puerto rico, texas and florida as well as funding for community

health centers and extending children's health insurance for ten years. one thing not included in this bill, which is still requiring a detailed appropriation to be worked out in six weeks for the rest of the fiscal year, so we'll keep the government open for six weeks but it doesn't include anything on immigration. mitch mcconnell said that even though this is the underlying bill for immigration, it will not include any immigration text he said that will be pursued through the amendment process. they are alternating proposal that need to be squared away mitch mcconnell said he can't guarantee any outcome on immigration. guys. >> i know michelle has a question and so do i but let me ask you this. he said bicamera which suggests that the house is ready to go along with and support this even though last night the house passed a much more narrowly tailored government funding extension. is the house going to pa-- pass this and will the president sign

it absent a daca solution? >> reporter: well the president said yesterday that he would like to shut down the government over immigration and over border security but then his own advisers and notably the press secretary broke with that and said something different later that afternoon. but interestingly, we expect the house to be on board in conversations with both sides of capitol hill, tyler, it seems the house has been involved in this process they've been aware of what the proposal would entail throughout this but it is going to come down to two factions as it does here on one side you have the conservatives, the house freedom caucus and the democrats who want protection for daca and the house democratic leader nancy pelosi said she needs assurances from speaker paul ryan that he will pursue immigration in the house in order for her to let her caucus vote for it >> very interesting. and you answered everything so thoroughly that michelle yields to the -- to the member from the district of columbia

thank you. back to the markets. we do have a triple-digit rally. not of a few minutes ago but 190 points higher. is this selling in the rearview mirror bob pisani. >> it is looking better but not out of the woods yet take a look at the last two days once again the low trade was at the opening 2606 the second day in a low the low trade was at the open. and we've moved up since then. so what about the selling over the biggest trade we've talking about this -- the last two years goes short-term volatility and long stocks. traders went out and sold put options and long on the market that blew up on monday and tuesday. traders cover the shorts and the vix and the unbound long position caused the volatility here is the good news, that is a crowded trade and it has gotten unwound somewhat the question is, is it unwound enough we don't know. take a look at s&p 500 since friday we moved about 200 points from the high to the low. and we have regained, believe it or not, almost half of the

losses from friday to the lows that we saw on monday. that is quite a turn-around over all. how about the -- this week what is changed this week. that is what is amazing. so much of this was technically driven that is our emphasis here. the inflation risk we talked about hasn't changed political risk and washington haven't changed and this budget deal is making things look better and we're starting to hear the valuation is risk is lower and leon coopermon thought that was a accessible multiple. we're not that far away. back to you. >> not that far away but we are getting further away from the top today any way yeah, we have a decent rally going on right now we're up 170 points and still 200 points off the poik but either way, dominic chu people are buying into this and what are buying >> the shopping lists abound on this latest dip below the key support levels in the market so let's take a look

we want to see where in the market some people put their shopping list to work and what types of stocks they were. take a look at this because we look at the russell 1,000 index of large cap stocks for the large cap market there are a number of stocks that have risen by 10% or more just since their intra day lows so that bottoming process that we saw maybe and then of the thousand stocks, 32 names have risen 10% or more since yesterday's intra day lows until about half an hour ago what names are they? check this out because this is interesting. brand names on the retail side, best buy, a winner in retail that pulled back quite a bit on this last dip is now up 10% from yesterday's lows netflix stock, one that investors have been trying to play catch-up with, it kent down and now up 10% since the low yesterday. on the home depot, 11% twitter 11% and nvidia 15% and it could be either

fundamental buying or some so-- short coverings but that was the big deal for investors >> and the question is should investors believe in this two-day bounceback or is this a head fake before potential -- another selloff ahead. brian bellski, and bella barton at eaton vance management. thank you for being here whatever happened on monday, whatever is happening today and yesterday, yanna, do you agree that what the market fundamentally has come to grips with over the past week or so is that the era of easy money is ending >> absolutely. i think we are reminding volatility is back and that is what we've been waiting for for a very long time i know there has been a lot of mention of the vix and the gage, but just for context, over the past years the s&p 500 has

returned 7%. and that has cost volatility about 15%. over the past year the s&p returned 26% and that came at a cost of 5%. so you have 2.6 times the return at lower cost and the volatility was subdued. nothing has fundamentally changed other than readjustment of investor mentality that we do have a steady economic growth recovery with rising interest rates, rising inflation, rising costs and you have to readjust the portfolio at -- adequately to that. >> and brian, generally stocks don't dislike a little inflation. they do well with a little inflation. it gives companies pricing power. >> correct well -- >> a lot of inflation is it another matter >> right i think the biggest problem -- >> have i stumped you. >> no. i'm trying to put this in -- in a way that is clear. i think the market lacks perspective and to be clear,

okay, inflation is good. growth is good earnings growth is good. economy is good. we have forgotten that the majority of investors that are portfolio managers unlike yanna is a good friend and long-term client has been -- have not been doing this for a while. so they don't understand furnd -- fundamentally what is happening. that is why you have this quote, unquote, freak out on friday and monday and this incessant need to find out what is occurring. the fundamentals of the market have not changed the united states balance sheet in terms of cash flow and cash overall, but most importantly the consistency of earnings continues to improve and that has not changed in two days. >> one fundamental has changed she brought tup. interest rates are higher and it looks like they are going higher and when they rise they are competition to stock suddenly people become less willing to spend as much money for one dollar of earnings it compresses multiples. >> the next phase of the bull market is this phase that we call the acceptance phase. we're mult -- where multiples

flatten if not go down because the denominator -- the numerator, the majority of the up trend since 2009 is denominator driven. >> so that is how stocks can go higher or rising interest rate environment as long as earnings are growing better. >> in the 90s it was a great time to be an american a majority of in vestors running funds were not running money or doing research they've never soon this before that is why the more fundamental you are and the less emotional -- >> we had a higher ten year yield four years ago and the markets still continue to go up and then the yields fell do we have a guest on later on who said that he thought the numbers were not inflation, they are disinflationary. what is the chances that yields go back down we have been here before, have we not irg -- >> we have but the yield is high.

so if i'm making a decision, it is clear which way i would lean and would you remind the investors and the perception of where the defensive poture is, it is not in bond proxy. if you recall on monday, when the market did decline 4%, telecom declined 4.25% so this perception of where the safety is, is really not coming to fruition. and i would reinstate what brian had said about earnings and that is definitely something that hasn't changed if anything it has gotten better you have 60% of the companies that have reported for the first time in history more companies, 80% of the companies are beating on the top line than they are beating on the earnings line and that show cased the organic growth trajectory you need so see in a changing back drop in the secular growth stories like tech and health care. >> everything is soft. >> thank you very much brian, we appreciate your time, yana. >> and a news alert in the bond market ten year notes up for market and

it looks like it was soft. >> it was a bit soft i gave it a c-minus. and i think i was a little bit generous but let's go through it. 24 billion ten-year notes. this is the first opening. we'll have reopening the yield at the dutch auction 2.8111 and on the one issue market and the high of the date on the one issue market before it closed was around 280 and a half and so right off the bat it wasn't looking terrific. but the internals weren't bad. 2.34 bid to cover and that is since september of last year not that long. 67.5 was a bright spot on indirect and direct 5.4 were light. lightest since june of 2017. dealers took 27.1% of the auction. and of course tomorrow we'll have 16 billion with respect to 30-year bonds complete package of 66 billion. but i was shocked we didn't get better demand. it tems me a lot

these rates moving higher, it looks like investors want to see how much higher they are going to go. back to you. >> thank you very much steve wynn resigns from the company he built that stock moving higher contessa brewer is live in las vegas. >> reporter: when you look at that stock, you could see how much investors were affected but what a reversal for steve wynn the man who helped shape the way modern day las vegas looks resigning as you said and by the way losses have begun being filed. norfolk county retirement is suing over breach of fiduciary spobl -- responsibility against the back drop of the dozens of allegations by the wall street against steve wynn he sent out a statement last night saying in part, in the last couple of weeks i found myself a focus of an avalanche

of negative publicity and this is a rush to judgment takes precedence over everything else, including the facts. i've reached the conclusion i cannot continue to be affective in my current role at the time he said that the allegations against him were just proposterous. the board also sent out a statement in connection with steve wynn's statement saying that it reluctantly accepts his resignation with a, quote, collective heavy heart president matt maddux will step into the role as ceo with the company since 2002. that is a succession plan ebb -- endorsed by steve wynn but he is facing tough odds. the nevada regulation and macau and massachusetts regulators launching an investigation into what happened and the board itself going to come under scrutiny biggest challenge for maddux

could be the loss of sfe-- steve wynn himself in a previous s.e.c. filing the company had written if we lose the services of mr. wynn or he's unable to devote attention to our operations, for any other reason, our business may be significantly impaired the question now is can maddux demonstrate dependence or fill the board with members and operate this company successfully or is this a company that is destined to be sold off in pieces guys >> a lot of questions there. we'll see you back in a few minutes. we appreciate it thank you very much. keep an eye on the stock market we're down 275 points. we are still up, but we've lost 275 from the high of the day the nasdaq has lost over 150 points and the nasdaq is now negative if this continues it won't be long before the dow goes negative as well we don't know, but that is certainly the trend all of this selling taking place in the last 15 minutes or so, the volatility simply rolls on.

do you think that you are diversified just because you own a bunch of different etf's, you might be wrong and up next we'll look at how much etf's are focused on a couple of big names and one of the biggest names in the industry will join us to talk about it got a lot more to do on "power lunch. stick around 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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if you think you diverse fight because your portfolio has a few names may not be as diversified as you may think these are the most etfs and the largest is qqq it is five biggest holdings are amazon, microsoft, facebook and google alphabet. they make up 44% of the etf if you include both classes of alphabet stock and keep those five stocks at the front of your mind because the iwf russell 1,000 growth etfand the number two biggest has the same top five stocks that make up 24% of the 552 holdings next up is the vug, this one different but only because it subs in home depot for microsoft. other than that, the four biggest stocks are the same. you are starting to see a trend. the fourth biggest is the i shares growth and ivw, 26% of

the holdings are -- you guessed it apple, microsoft, facebook, amazon and both classes of alphabet finally, the schwab u.s. large cap growth etf, 23% of the four holdings are -- yep, apple, amazon, facebook and alphabet but it does feature berkshire hathaway so if you are thinking about buying these and which might be the most diversified based on the least concentration of stocks at top, it is not the qqq. the most popular one 61% of its weight is just the top 15 stocks, the least weighted to the top is the iwm it is 15 stocks make up just 36% of that waiting. so let's talk about this joining us is a legend in the industry, john van vex, they have a number of etfs which none of which he will tell you are levered. and i'm not trying to scare

anybody and these have done a lot good afternoon for people. and what i'm trying to point out and tell me if this is bunk, when you have a couple of big names, running the show in the etf's, if investors decide that amazon or apple or whatever is overvalued and start to sell it, do you think it would have the power to bring down basically much of the market just a couple of stocks? >> well there is so many things going on in your question. let's just talk about tech stocks we're in another tech mania. almost similar to thebubble of '98 and '99 and i say that because it is -- it is way beyond the names that you mentioned. if you look at china, i.t. in china is the largest sector and more important than the state owned bank and that is number one number two is the tech phase of bitcoin and distributed levers and they brought in so manyin --

investors and so they have more than schwab. >> he's asking about structure more than anything. >> those five stocks, they are about 160 billion of total market value which is not nothing. and what i was trying to make the point that you have a couple of stocks that are running the show and i don't think a lost investors realize, i'll be the qqq, it is over 100 stocks and well diversified but if two or three stocks move, the whole thing will move and it doesn't matter how well the other companies are doing. >> the mentality of investors today is 100% all in tech mania. and just supporting your point so the question is how can these stocks hit a wall. it is something unexpected now there are unbelievable cash powerhouses. it is unbelievable the market share and cash generation is the envy of everyone sow have regulatory risk that is out there, and i don't know maybe distributed ledgers could challenge them. >> but brian -- the major point

and it is a critical one, for anyone who invests in an etf or a mutual fund, you need to know what is in it. >> right. >> and you need -- and you need to -- as the dow goes negative right now. or now it is back up a little bit. you need to know what is in it and what the dominant stocks r. if you think automatically because you are in some kind of in dexed product that you are not in a concentrated portfolio, you may be wrong >> you have to know what you are buying absolutely but the investors won't agre >> you need to know and be comfortable with the idea that five stocks are 40% of your portfolio. >> and the idea -- people buy several etf's or several mutual funds and they have different names and different missions and ultimately you look at them -- >> and the result -- >> low and behold they all hold apple. >> and a incestuous portfolio.

>> and energy stocks as a percentage of the s&p are almost at historic lows and that is a hatred going on to those stocks totally agree. one, the mentality change, can the bull market in stocks survive a tech market correction i don't know the answer to that. but that is a great question >> that is the part we are trying to make. it if does correct and bring things down, so their point, the xhb, a home builder, it has home builder in the name, the 7th biggest holding in the first home builder. it has like whirlpool and bed bath and beyond before the first home builder so when you structure etfs, how do you make sure it is an attractive thing and you have -- it has a catchy name or whatever it is, but that it accomplishes the goal that the buyer who literally may unfortunately be buying on the name, don't do that, but if they did, they accomplish the goal you want them to. >> it is important it is our job as etf issuers to earn the trust of our clients

and to describe what is actually in the portfolio so that if investors buy something for a reason, they are getting that and we have the pure play rule, so constituents have to get more than half of the sales from -- from the activity described in the etf. a coal company in a coal etf there are plenty of etfs out there that are confusing and misleading and you have some of the etfs that came out recently and they include goldman sachs and banks and you would be chal everyoned to find half of a percent with a block chain. >> thank you let's take a look at the nasdaq we are near session lows on it shall we to the nasdaq. it looks like the chips are down right now. look at that down 45 points or theres about mike ron and lamb and microchip

technology at session lows as that index declines. there you see them with microchip technology down almost 8.5%. the big cat names, alphabet and microsoft and facebook and apple, the very stocks brian was just saying are in those growth oriented etfs. >> they are growing as the losses right now. >> they are down >> and we should point out maybe it was the soft auction in treasury as steve liesman points out and the auction is soft, maybe that is why we've seen some selling here we'll talk more about that after the break. burritos and tours and newspapers and all of the news on the stocks making big news today. and speaking of bitcoin. bouncing back, back above $8,000 does that mean the worst is over for bitcoin? not according to one major brokerage. "power lunch" will be right back

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confront any israeli aggression on the land or maritime borders amid escalating tensions between the two neighbors. and since it is lunchtime, ben and jerry's will soon offer a slim down version of the ice cream. moo-phoria will large this month and consumers could choose from caramel cookie fix, chocolate milk and cookies and pb dough. each flavor has 140 to 160 calories per serving that does not mean you eat three servings. >> for some people it does >> yes, that is true. >> is that a quarter cup or a half i cup. >> i think it is a quarter cup >> what are the container size is the serving size in the sullivan household. >> there you go. >> and that is what you eat. because why would you leave food >> exactly >> don't waste food. >> thank you >> thank you. checking the stocks making big moves, starting with

chipotle down 10% there is still concerns about sale and traffic as the company tries to recover from the food safety issues. tronc is soaring 25% >> you didn't say trump -- >> no. i thought it was tronic but it is tronc great to sell "the los angeles times" and the san diego union for a reported $500 million. market cap on the company was only $600 million. so stock making a huge move. hasbro shares are moving higher as the street focused on the bottom line and not the top. earnings beat the street by sales disappointing due to a decline in sales of star wars toys the ceo joining us on "mad money" tonight at 6:00 p.m don't miss that. jim will speak to the ceo of clorox >> meantime, bitcoin is rebounding today back up above 8,000 but not everybody remains convinced the bounceback is for real seema mody, why not? >> here is what we have. most cryptocurrency will crash to zero. that is the major headline from

a goldman sachs report that compared cryptocurrency to the internet bubble of the 1990, head of the global investment team steve strongen said if you believe this is a few winners take most situation then the potential for retirement depreciation shoud be taken into account. and because of the lack of intensive value, the currency that don't survive will most likely trade to zero those bold words come after what has been a very volatile week for cryptocurrency with bitcoin trading down as much as 70% from the recent high. we are seeing a rebound today. yesterday senate hearing on virtual currency with the s.e.c. and cftc did add some level of reassurance and they are not looking to shut down trading but just add more regulation to the space. it is said to be behind the recent rebound with bitcoin now up over $2,000 over the last 24 hours. back to you. >> seema, thank you very much.

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the market losing a little bit of steam the dow was up triple-digits when the show began. it is still up triple-digits but up a couple of hundred points not just about 110 points, i think many of the note as agree with what you said, michelle, which is that the weak demand of the ten-year auction and you could trace the slide in stocks as yields move higher. the yield at 2.82% on the ten-year, rick santelli gave it a c-minus and that was a generous grade. >> speaking of rising interest rates. one of the big questions investors asked is what will the fed do next. steve liesman has some thoughts on that. steve. >> thanks. one of the reasons for heightened uncertainty in stocks is more uncertainty in bonds and there is play to figure out where rates are going and where the federal reserve is going let's talk about the supply issues the fed is reducing the balance sheet and will ramp up to nearly $600 billion in a year when it gets to that point

government borrowing is set to rise, back up to a trillion dollars and you have the tax cuts along with greater retirement and medicare and medical expenses you have a different rate -- the rate will rise to reflect better economic growth. on the demand side, there is a place where treasuries compete with stocks and so investors are looking at that for some it is 2.7, for some 2.8 or as high as 3.5 or 4%. and the long rate feeds back on the fed. they set the short-term rate at the rate to continue economic growth that is what they hope but if growth is better they could view the short rate higher than it is now here are the probe abilities you've been looking at they have been volatile. 84% with a chance of a march rate hike and second back to june. it was in august and then june before that just 54% and under 50% probability for the third rate hike in december.

some fed speak this morning. robert kaplan said market corrections could be healthy no noic -- implications yet the neutral interest rates likely lower than the historical level. william dunnly saying no economic or policy impact yet for market turmoil but a deeper fall could change that out look. and charlie evans saying the feds should hold policy until midyear. >> steve, thank you very much. stay there we're going to bring in shre couplear interest rates are rising. back to 2.8. what is the ultimate -- where is the ten-year going at this point? and what do you think that does to the stock market? >> i don't see the 282 sticking. i think it is due to come down again. if you look at why the ten-year yield went up you could trace it to two different factors one on january 24th through

treasury secretary mnuchin talking down the dollar and it plummeted an the yield rose and then the stock market correction began and the second one on friday when we had the jobs report. but if you look at what happened that day, the average hourly earnings accelerated from december to january, but if you look at the total pay that workers took home in a week, or they took home during the month of january, it was down significantly from december. when you earn less during a week or a month, it is not inflation, it is disinflationary, sow think yields will stop here at 2.8 or come back down >> i think they are eventually going to come back down. whether they go up in the short-term because of nervousness is hard to tell. but if i were a betting person, looking six months ahead,

mitchell, i would look for them to be significantly lower. especially when you consider that the number of hours worked during the week, which was as high as 34.6 hours in january of 2017, came down to 34.5 hours last november and december. >> got it. >> and only 34.3 in january, that is why -- >> here is my question if yields will come down, you would think that would be good for the stock market money is cheaper however everybody is saying the yields are going up because the economy is stronger. so if yields are going down, does that mean the economy is not as strong and what does it mean in your opinion for stocks? >> first of all, i think the yields go down because there is not a pickup in inflation. not going to be the 3% economic growth anticipated -- >> i'm sorry -- >> [ inaudible ] so the bond yields go down and you could have a situation

within the economy weakening that it also becomes negative from an equity view point, michelle. >> so i sort of feel like jethro clamput. >> are you sitting on a pile of oil. >> i think his name was jeff -- >> we have a full economy and an economy growing close to 3%. maybe it will, maybe it won't. and you have what appears to be -- shre disputes it, rising wages and a tax cut going to add stimulus to the economy and you're going to have a federal government that is going to need to do a lot more borrowing >> it is complicated. >> that is suggesting to me rates will go up. >> let me give you -- >> one second -- >> let me let steve answer and then shre. >> he is right and i've sat here in this chair for many years and said forget all of the noise the only thing bond investors care about is inflation. and that is the only thing that

matters. and it is why i think we need to look at the inflation data in the weeks ahead and the months ahead. but as i said during my presentation a little bit ago, there are some complicated supply issues that are going into that and complicated that theory there is the supply of the fed reducing the balance sheet and the tax cuts if you think about what is the issue in the market, i don't want to know what i will do. i want to know what the other guy is going to do if i'm concerned i may not be not a better buyer. >> so, shre, tell me why i'm full of inflation. >> the first part is we are not close to a full employment economy. there is significant slack in the economy. if you look at the labor force parps rate for the 25 to 54-year-olds, the prime working age group, that is down and we have not reached the pre-grade recession levels at all.

second, we have people who are working multiple jobs in january 2018, up significantly from january 2017 this is something that many analysts have missed as well the reason you are holding multiple jobs is because any single job doesn't pay you enough and that is why you are doing it the u-6 unemployment rate which is a broader measure than what is quoted the 4.1 percent increased as well as from december to january. all of these say to me there is a significant amount of slack. it is just a matter of how the economy grows and i don't get the -- the why that the economy is picking up significantly or that you don't have enough labor. >> you and minor and gun lock and gross you are living out there in sunny california. it is beautiful every day and the sun shines and you are all so negative. it is 18 degrees and hailing and we're optimistic let's switch it around

>> gotta go. >> thank you -- >> [ overlapping speakers >> optimistic on one. >> if the valla tilt wants to make you pull the cover over your ize thank you. stocks rebounding. plus we have your market lali svil guide. that is next here on "power lunch. thglobal markets,f the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. especially when inside another amazing machine. your an amazing machine. the lexus es. with standard technology like lexus safety system plus. the lexus es, and es hybrid. experience amazing at your lexus dealer.

so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income.

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wild market. you know it, don't panic remember your goals. there is a reason you started investing. you set a goal and it could have been to savor college or fund your retirement. whatever your plan, take a few deep breaths and i'm into yoga and stick to your plan the money is there for the long-term haul and then it is probably better to be in the market where over time it will grow the next thing is don't hit the sell button until you've reassessed your risk if you are losing sleep over the market turmoil, your investment mix may be too aggressive. after last year's gains, your portfolio may need tweaking. rebalance and diversify your hold gz and if you need cash for a large purchase in two or three years, rethink that stock exposure and finally don't go it alone. talk to an adviser speaking with a pro who has weathered the market may give you a gut check and it is their job to calm you down and if you need it to rework your investment strategy. guys >> sharon, thank you very much.

i wonder whether there is an argument to be made if you are nearing retirement -- it gets different obviously if you are -- if you are 25 or 30 years away from retirement there is an argument to be made to look at your funds and maybe take half your profits a quarter of your profits? >> you want to make sure you have enough money to live on if you are retiring soon. for a couple of years. and so if you haven't already had a cash portion of your portfolio for retirement, you need to think about that because that is important. >> because the markets are still up -- the dow more than 20% in the past year. >> yep. >> more than that from the election day and the s&p is up about almost 20%. so you still have profit. >> you still have profit and think about the time frame that you are going to have in retirement and 20 years, maybe how long you will be there so you want to have that money still invested in the stock

market but you also have to be realistic about what your day-to-day expenses are going to be and make sure you have cash on hand for that a lot of people as they are working, they're amassing a great deal of savings in the 401(k) and never thinking about having that cash on hand for emergencies and other things and as you get closer to retirement, it becomes more and more important >> sharon, thanks a lot. thank you very much. talk about a snap back year after going public, snapchat shares soaring back above their ipo price, up about 40% right now. can you say short covering a slew of upgrades up there out there on that stock. is this a real comeback? is it worth a second lk oofor your hard-earned money "demonstrate talk" a shortened version on deck. nts? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too.

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a year after going public snapchat shares finally back above their ipo price, oaring 37% on a surprise earnings beat and the stock getting a lot of love on wall street today. we had a slew of upgrades. rbc capital raising snap to outperform suntrust raising it to hold from sell jpmorgan raising it to neutral, everco up to inline from

underperform lot from we hate you to we tolerate you jeffries continues to have a hold rating. here the analyst who made that call live from our san francisco bureau the point i was trying to make, brent, upgrading something to a neutral is kind of like saying, dad, i went from a d minus to a c plus they're less angry than they were how much of today's move is merely just short covering >> i think you nailed it in the segment earlier, 20% of the float is short they missed three of the four quarters being a public company. the stock lagged the comp. since going public late last winter. lot of the the news is negative, one of the least asked on names in the universe we cover you have a lot of short covering expectations were probably the lowest among the internet names and they had a good quarter, beat the revenue by 33 million,

good user growth, and we think they're on a decent trajectory over the next two years they'll lose well over $1 billion to gain $2 billion in sales it's still a store why i in transition. >> that's spending a lot of money to get customers this may be the only interview you do today i reference kylie jenner she posted a picture of her daughter on instagram. every time one of the big stories it involves instagram, we're hardly ever mentioning snapchat do you think they are able to now compete better with facebook's instagram >> we think there's a role for snap i have a 12-year-old and he uses both i think most of his friends and when we do polls with teenagers and millenials, they like the platform so i think that there is a role for snap i think that the role of facebook in the investment community is a lot stronger.

when you have 40% plus growth, 40% plus margins growing their head count over 40%, the numbers are just staggering relative to what snap and others are putting up so as we're making financial recommendations to our clients, we still think that there are other stories like go daddy, match, facebook, google, amazon, they're just better stories that have a balance of both top line and bottom line as well as dominant market share and we think again the barriers to entry here there are barriers, but we think that the barriers are lower, as an example of what you're seeing with instagram >> what do you think the next big thing is, in this space, brent? >> you know, there's a lot going on in internet it's almost too hard to cover in this segment, given what we're seeing among 40 to 50 private companies, but i think you're seeing a slew of vertical solutions. you're seeing a new crop of e-commerce companies coming up

there's quite a lot of things that are going on. i think ai has been well talked about, but we think google, amazon, facebook are the ones that win the ai war because they have the data. but i think there's almost too many things to cover in this segment. >> yes go ahead finish your thought >> i think one of the things that we are seeing is around autonomous, and this is an initiative around, with google and we're starting to see this especially now what's happening in phoenix, rolling out in atlanta. we do think weimo will have a big initiative we've called it one of the great call options for google that this is going to come sooner than we all think. we think autonomous is the one component that could be a really nice driver for google over time today it's not really big in material to the story, but effectively could be sooner than we all think trading the market multiple we like google and think the market hasn't priced in weimo into that

equation >> brent, thank you very much. we appreciate it our parent company nbc universal has a minority stake in snap the other big earnings out today tesla's stock is up 9% so far this year. company reports after the bell don't expect out of the world results. we'll tell you what you can expect, in the second hour of "power lunch" next

here's what's on your second half menu. appetite for stocks seem to be back stocks poise ford a two-day rally. is the big flush over? can a sickle etf cause outside market moves yes, when it is extremely leveraged. is now the time for regulators to step in and start controlling or outlawing some of these products, and a roadster in space but production problems here on earth. elon musk may have launched a tesla car aiming for mars but down here he can't make them fast enough. to you buy, sell, or stay on the side lot of questions "power lunch" takes off right now. ♪ i'm a rocket man ♪ rocket man, burning down

the -- ♪ welcome back to "power lunch. the dow trading nearly 500-point range already today. right now the industrials are higher by about 0.3% nasdaq and s&p have gone negative after the rally we saw this morning the russell 2000 is higher by 0.1% the ten-year yield moving higher, following a weak auction in the last hour isn rick santelli gave it a c minus. lots of fears they'll borrow a lot more money, the ten-year yield at 2.83% we're starting to see that rise again. that caused a little fear in the markets last week and it's one of the reasons why we think maybe we saw some selling mid session. te telecom and industrials are leading. energy and tech are the only two sectors in the red chipotle is sinking as the results disappointed tronc is announced it will sell the "l.a. times" and "san diego union tribune" and the stock is up and hasbro is jumping despite

an earnings miss l brands, under armour, macy's nordstrom up and steve wynn steps down, we'll have more on that, the stock is higher by more than 8% dominic chu has more >> as we talk about softbank a company that made for itself investing in tech and telecom, some dow jones headlines coming out stating that softbank group is in advanced talks to buy a stake in swiss re, a large european-based re-insurance company. they are citing sources familiar, softbank could purchase as much of a third of the swiss reinsurance giant which has a market value around $33 billion right now. we can tell you that swiss re shares are listed in trade in europe obviously they're closed right now. one of the more thinly traded depository receipts traded here on the over-the-counter markets in the united states is up by about the%, 10% in a thin trade

again, but certainly some headlines we're going to watch as softbank really gets into perhaps a business that's not exactly tech or telecom related at all back to you. >> dominic thank you very much in this wild week on wall street continues the law firm of pisani and santelli are standing about toy represent at the new york stock exchange. you've been looking at nasdaq and its relative weakness. what could it be telling us? >> tyler, this is in the context of a market that looks like it was a plausible trading low. we'll knock around and find the levels that make sense top five biggest market cap names in the nasdaq are all down today in a tape that's been mostly up. what i'm on alert for when you have the directive periods in the market, the volatility storms sometimes it's a crucible for a leader change. less about the mega stocks in tech and nasdaq or maybe

cyclical stocks. there's no way to state for sure if this is the shift that's going on but one of the things that stands out. >> i'm on alert for the ten-year remember what happened on friday, tyler, this whole mess started when the ten-year yield moved at 2.85. we're moving in that direction again. so we had as you mentioned the weak auction there, and that drove up yields a little bit then we had thisbudget deal here that's going to add $300 billion to the deficit and i think that was a factor in the slight swoon we saw down right after 1:00 put the auction together and the budget deal together and yields go up. stocks had a little bit of trouble after 1:00 >> do you see this deal just announced, softbank going into swiss re generally insurance is boring but what struck me, mike and bob, who benefits from higher long-term interest rates, the insurance companies that have been so frustrated about not being able to get yield on premiums i understand this is re-insurance, but still this

might suggest some confidence interest rates are going higher as well. >> it would seem so. also, it's clear that softbank just has capital it needs to deploy >> crazy >> not exactly in the sweet spot of softbank's normal portfolio >> you'll see people grabbing these ten-years with the yield starting to move up here, and there may be some natural ceiling on the levels of interest rates, given how low interest rates are around the world. i think other people will start snapping this up quickly. >> thanks, guys. let's discuss more about what's going on in the market you see leon cooperman appeared on "the halftime report" earlier today. he believes good stock selection will be rewarded in this market and also stated there is room for rates to rise and there are plenty of cheap stocks around. is he right? here to discuss, jeff mortimer director of investment strategy at bny melon wealth management and james norman, president at qs securities. jeff, talking about rising rates again, we saw the government

borrow money today the demand was a little bit soft interest rates are starting to rise do you think that the sell-off that we saw, what was the catalyst was it rising rates? >> i think there are two catalysts, michelle, the first one i think was the sand in the hourglass and gravity took over. some 400 days without a 5% correction and i think as a student of market history, i think it's imperative to understand that the markets go through both up and down phases. i think the key variable i think you're hitting on it, the february 2nd jobs report is the grand daddy of them all in my opinion. those reports, which whenever they come, have a chanceto change market reaction, and i think the market sort of changed its shtick on that day i think you went from a disinflationary environment, that's what the market was used to and preparing for and that sort of changed the cards to perhaps a market that has to consider inflation, and i think as that happens, those transitions take place with volatility as the outcome, and

so that's what we attribute the draw-down to i can certainly touch upon what we're doing about it -- >> i want to get james in here if there has been a paradigm shift, is it still safe to own stocks >> absolutely, it's still safe to own stocks. i think really what caused this was concerns about growth going forward, and inflation was the trigger for that and the ten-year was sort of the signal that everybody took. when the jobs report came in stronger in terms of wage growth, what that really caused investors to sort of guess and be concerned with b was growth right now we're looking back to the early '70s, on 96% of earnings growth and at the same time low of volatility every 15 to 18 months we generally have a correction. we have a melt up to a me melt down. we haven't cleared all the excess out of the markets yet. i recommend rotating into more defensive equities you want to stand to equities to

capture potential upside over the next year or two and focus on the stocks with volatilities. >> sounds like you are a blear the period of heightened volatility and more violent ups and downs has a ways to run. paint the picture, james, of the next three to five months in equities >> the next three to five months really focus on investors digesting economic news, also digesting political news right now we have the budget deal, of course, and the budget ceiling but in addition to that we have trade policy there are a number of things that are going to cause investors really to really question can the growth continue at this pace or will the federal reserve step in, will jerome powell try to prove his credibility by raising rates and tamping the brakes on things or will trade policy call into question potential economic growth of u.s. companies and companies abroad so that is going to cause more normal volatility. we've just been in an unusually

low period >> sure, i know we've all been there and couldn't believe it. jeff, you outlined your case about what you think caused the swoon. what would you do with stocks going forward? >> during the swoon, we looked at a couple variables, the most important things of course for markets are earnings and economic backdrop, economic growth we didn't change our forecast on either of those. so i think, and when the vix pops or when markets decline and you still have a firm foundation with earnings and economic outlook, markets tend to be higher 6 and 12 months later i don't disagree with james we are probably in a backing and filling, pat rah dime change that has taken place i don't think it's a three-day swoon and a two-day recovery i think this will take months to sort of play itself out, but i would be a buyer on weakness in general during that time period, and i agree that i think stocks come out of here stronger as long as inflation, inflation to me is the key variable as long as that does not run away to the upside, i think you still have a decent backdrop for

equities, because of strong earnings and a decent global economic backdrop. >> jeff and james, good to have you on, thank you. >> thank you >> thank you elsewhere, disney earnings are in and they're really a mixed bag. you've got theme parks hot, broadcast and cable not so much. julia boorstin is live in los angeles with more on disney. julia? >> reporter: well, brian, disney's park resorts division beat expectations on the top and the bottom lines the media networks division which of course includes espn, fell short of those wall street expectations the ceo was optimistic saying subscriber declines are slowing while he sees growth from digital tv packages, he also said that the espn plus app which will launch this spring will cost $5 a month >> sometime in the spring we're going to launch a completely revised and basically redesigned

espn app that will include an array of live programming that is not available, live sports, live sports events not available on the current channels, and that's by the thousands. >> reporter: with espn invested in monday night football, i also asked iger how concerned he is about declining nfl ratings. >> we obviously track it pretty closely. i'm not sure you can pinpoint one reason why the nfl has experienced declines i think there are probably a number of reasons starting with the fact that it's just a far more competitive world today puts a lot of pressure on things being food and a lot of pressure on things being in demand. that said, if you look at nfl ratings, they stand rather tall against the sea of choice. >> reporter: iger says that, with tax reform giving the company access to more cash flow they'll do a blend ofdifferent kinds of investments he spoke about the value they're seeing from investing in the parks over the years we'll have to see if with that

extra cash flow they bid more on sports rights and see how that fits into the espn app guys, back over to you and you'll find more from my interview on cnbc.com. >> clarify something for me. i was listening to your interview yesterday with bob i have the espn app and it enables me, because i'm a subscriber to comcast service, to go on and at no additional charge get content that is not on my cable system at that particular moment. >> reporter: yes >> does this new app, is the new app going to cost me an additional $5 a month or not >> reporter: no. so they're launching a redesigned version of that app, tyler. so right now, if you pay for cable, you'll still be able to login and get all of that espn content. you'll also have some other things you'll also get free access to some stats, and different data on your favorite sports teams, and then there is that he third element, they're launching something new. if you're a subscriber you can access ul that espn content. if you don't pay for cable tv, a

cord never or cord cutter and really want to see 10,000 hours of sports programming they are going to give you this new different assortment of sports content, it's 10,000 hours for the year and that's going to be $5 a month, sports like soccer and cricket, the stuff that's not on your regular espn channel. >> so i can look forward to getting that at no extra charge beyond what i pay comcast. >> reporter: cable >> but it's those people who don't have a "cable provider" who are going to pay the extra money. did you get to him -- one of my hypotheses about falling ratings and the nfl. ily think there are lots of explanations but one is there are people watching nfl games on digital devices their cell phones not measured by nielsen >> reporter: that's right, those are not measured by nielsen and nielsen has come under a lot of criticism. in order to really stream nfl,

you're probably going to be a subscriber to television to pay for the paid tv bundle in one way or another so there is a lot of criticism for nielsen not capturing out of home viewing but nielsen is trying to make changes and now starting to try to cover those over the top viewing as well through those digital streaming services which are benefiting disney iger said in terms of that prescription. >> it's one of the elements amid a whole stew of things i think affected at peel of the national football league to viewers julia, thanks again. nice to see you. here is what's coming up on "power lunch." the casino mogul steve wynn has stepped down from his namesake company. what does this mean for the future of wynn and its stock plus, our levare leveraged s dangerous for your health and do they need to be regular glagted more strictly? a tesla roadster begins its

jumpy away from earth and here on earth it faces real production problems. we'll take a look at what to expect from that company, when "power lunch" returns. 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.

a big shakeup in the corporate world, casino mogul steve wynn stepping down as chairman and ceo of wynn resorts following allegation of sexual misconduct contessa brewer is live in vegas with the latest. >> reporter: michelle when you look up and down the strip this is a monument to steve wynn's vision for las vegas with shareholder lawsuits now filed, with investigations probing his company, wynn is out. he has fully endorsed the

succession plan that puts president matt ma dox o maddox o he's been with the company since 2002 the responsibility of the board of directors is coming under scrutiny as well in massachusetts the gaming regulators there made it clear they are focused on the actions not only of the ceo but of the board as well. we just had talked to the chairwoman of nevada's gaming control board who told me despite the resignation the investigation continues into wynn resorts, and the regulators are taking a closer look gaming analyst predictions two courses of action, maddox could replace most of the board members with new ones or the company's assets get sold off to potential buyers gabelli analyst adam triveson says las vegas sands, mgm, caesars, galaxy entertainment

other other chinese buyers the first challengefor wynn's new ceo matt maddox is to prove the company can operate independent of its founder >> thank you very much, contessa brewer on the las vegas strip. let's dig deep near what steve wynn's departure may mean for shareholders in that company joining us is david katz, equity analyst at jeffries david. let's cut to the chase do you believe in three years, five years, that wynn as a standalone public company will continue to exist? >> look, i think what we've written about this morning is that there are potentially two tracks, one go forward, and one where they sell the company and we do lean more in the direction that they sell the company, because i think ifyou are in matt maddox's shoes and is he a very competent executive and well thought of, the company lost its visionary and its chief diplomat so the go forward company can be very good it can be very productive and can ultimately be a good stock

but it is not likely to get the same kind of valuation that the company has historically and so they'll be forced to compare that with whatever offers may come in, in whole or in part for the company. and that may be the highest and best use at this point in time >> boy, that is really a key man risk, isn't it do you think mr. wynn's departure erases the licensing concerns that have surrounded the company since these revelations or allegations broke? >> it does not it's a great question, and it does not, because according to nevada law and i believe massachusetts as well, individuals that own above certain percentages of the company, certainly above ten which mr. wynn has are required to pass muster from a suitability perspective. they can earn a waiver and there have been instances where commissions will offer a waiver, but the suitability issue is still very much front and center and on the table >> david, have you done any studies or channel checks or

whatever it might be to consumers who have said you know, i've got a choice between caesar's and the bellagio and mandalay and wynn, i'm taking my money somewhere else is the consumer going to back off these properties because of these allegations? >> you ask again a very good question, which is actually a project that we started down the road yesterday, and what happens to the brand from here is really a critical question, and i think one of the points in the decision to have him step down and step down quickly is to preserve the value of that brand, whereas a long and protracted contested situation might have tarnished that brand. so i think the brand lives on and it exists. >> so you think a sale is possible, if not likely? it's trading right now at 176 bucks, you got a price target of 181 we've been showing the audience what does it sell at is that the level it sells out do the current shareholders get a premium? >> when we wrote about this not

only this morning but a week ago, monday, after the news broke, i think what we did is an asset value. we always look at companies from two ways, what do they earn versus what would the assets fetch in the open market and for the moment we're still in the earn category. if they fetch, the number we put out is $200 and what we've discussed with clients all day today is the notion that these assets could be in the trophy category, particularly in macau, the boston opportunity that's out there, those are highly sought after markets with first class, world class assets, and the buyers that may look at them may have strategic reasons, and quite frankly, they may not care what multiple they're paying they just want to be in those markets with those assets, and so i think our 200 could prove to be appropriately conservative >> david, thank you very much, for your clear answers we appreciate it >> my pleasure retail earnings are beginning to roll out, from totes to toys. we've got you covered. plus a tesla roadster slipping

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welcome back the markets less volatile than yesterday but the dow jones a range thus far of 500 points still moving around a lot. looking at the sector heat map for the dow jones industrial average, boeing and united technology at the top there. apple and microsoft are the biggest drags, both declining by more than 1% leveraged etfs, just too dangerous for the average investor, maybe the market al we'll debate whether it's time to regulate them here ahead on "power lunch. we're back in two minutes. i had a coach. math. ooh. so, why don't traders have coaches?

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hello everyone i'm sue herrera. new hampshire democrat senator jeanne shaheen and joni ernst sponsoring a resolution calling for a special senate committee to look into the sex abuse scandal rocking usa gymnastics

>> this special committee would compel the u.s. olympics committee and usa gymnastics to give testimony in a public forum, a resolution also requires that half of the members of the special committee are women. some scary moments for these passengers a southwest airlines plane slid off the run wap way t baltimore international airport. luckily no injuries reported take a look at this cutie pie, 1-year-old lucas warren is this year's gerber baby, chosen from more than 140,000 entries lucas is also the first gerber baby why down's syndrome, making an appearance today on the "today" show, look at that little wave w his parents. he's so cute lucas will also get $50,000, which mom and dad plan to use for his education. >> that was the most charming

thing ever >> i love the bow tie. love the bow tie >> i kind of get a little teary, i do i really do, he's a sweetie pie. back to you guys >> sue, thanks let's go to the oil market it is closing for the day and dominic chu is at th cnbc commodity desk. >> down 2.5% for wti crude, the west texas-based intermediate about $61.84 $62.50, 2% to the downside for the world benchmark crude oil prices again down by that particular mark if you look around the 2% area the clinz pdeclines put us aroud one-lows crude inventories 1.9 million barrel build to the upside, following private sector data that shows a reduction of 1.1 million barrels. the boost in supply due to inventories in the gulf coast refining hub, refineries are

winding down for seasonal maintenance. the lower crude prices translating into the energy sector being a lager today back to you. >> thank you very much, dom, seeing some of the major stocks and the dow jones industrial average. leon cooperman raising concerns of etns and the role they may have played in the market sell-off this week. here's what he told cnbc a short time ago on "halftime report." >> i implore the regulators and financial services industry to deal with the crazy instruments created that are destroying the best capital market in the world. it's crazy to see the s&p trade down 100 points in the matter of a half hour. it has nothing to do with economics. the regulators have to put proper leveraging into the system to protect the investor >> joining us to discuss these concerns is bart chilton, former commissioners of the commodities future trading commission. good to see you again. >> good to see you it's not right, michelle, i know

you don't like regulation -- >> let me introduce you to the audience we've known each other for 20 years. if something exists, you want to regulate it, right, so you've got to be dying to regulate these things >> what i was going to say i want to regulate your hours. you're on "squawk" this morning and here now there are overtime rules michelle even though you don't like rules >> do you think we should regulate leveraged etns, former commissioner chilton >> yes i swear to god there is somebody that just called me in the green room, actually, they lost their life savings on one of these, the ultra low etfs, the inverse ultra low etf. >> etf or etn? >> it's actually an etf. i know there's problems with the etns all of the etp products, exchange traded products i think, the general funds are okay, that are based upon the s&p index, et cetera, but some of these, i mean they're just crazy, michelle. even vegas, who has come up with

the, you know, david hasselhoff hoff-mania, you get five david hasselhoffs, they haven't come up with as wild a bets as we have for the etns and these leveraged -- >> if i could probe the example you just used and i feel bad for the individual you spoke with that you said lost everything, did you ask them why they can everything in one product? >> yep >> you can't regulate really bad decisions, can you >> no, and there's a difference between the bad decisions, you're right, and what this guy's concerned about, actually was manipulation i don't want to say the product because i don't know about it specifically, but it's like i said, it's an ultra, it's an inverse ultra low etf based upon the vix and only a couple out there, you can figure it out he thinks it was actually, the price was pushed around. i sent him to kara stein and others at the sec. the general question and we've gone around with regard to

digital currency, et cetera, michelle, whether or not there's enough consumer information, so average mom and pop investors and one of every two families has a stock investor, if they know what they're investing. certainly the sophisticated traders should know and they should know better to place all their eggs in one basket but mom and pop investors needs to know these things are really out there, they are wild you could risk everything, and lose it, and that's where i think the sec needs to move towards and i think they're going to >> what tells you that the people who are investing in these kinds of esoteric products don't understand them? >> it's anecdotal for people i speak with i don't have data telling me but given that markets have been on such a tear for the last whatever, 13 months, a lot of people are looking at different places to diversify and feeling a little free up until friday, they were feeling a little free with their money, and they get

talked into these things, maybe not pushed but their investment advisers are telling them you got this, you could make two, three times, if you go short or if you do the leverage, you can get two or three times >> they're chasing past performance i'm sure, look at how these things performed and well it was no volatility and these guys were triple levered against it and look at the money they made. they do what lots of investors do, and they chase the prior returns, right >> i don't have a problem with it i'm saying they need to have full information they need to look at these prospectuses and know about the fees >> they're 279 pages we know there were lots and lots of warnings in there, but if people don't read them, what do you do >> there's also -- here i'll make your argument, too, michelle everybody comes up with so many regulations that you have pages and pages and doesn't matter >> music to my ears, yep >> what i think the sec is going to do is come up with like, you

know, the key regulations, and they're going to put them in big font and going to make sure that if you opted out of e-statements you get them delivered to you. i think they will come up with the key things and those key things - >> how do you regulate greed, bart >> you can't regulate greed. >> it's like housing, right, just buy an apartment in 2005, put some carpet in, equity line it up, take the cash out, buy another apartment, do the same thing over and over again. >> leverage, leverage, leverage, baby >> nobody to sell it to, a money-making trade for three years people thought dumb about it >> brian, they need to have information and some of this isn't available to them. fees are hidden and particularly for these products we're talking about, the fees are often a lot higher than just a regular etf or regular stock trade and in addition to, forget about the investor protections i know you care about it, i won't be cavalier but put those aside for a minute what is the impact on the market of these things? we've got larry fink in 2014 saying they could blow up the industry

we got blackrock coming out, so it's not just me blackrock coming out in the last two days, the largest asset manager saying we do need to classify these things differently. >> so that of my question. are you talking about the all the etps or put aside the etfs and focus on the leveraged products >> the leveraged and the inversed, and the notes. the leverage, the inverse and the notes, not the regular standard, i mean, the etfs that are based upon whatever u.s. oil, u.s. nat gas, the s&p, those are standard things, easy to follow, they're good investments and particularly for mom and pops good places to invest in the market but these really exotic things, i mean it reminds me back in the day with credit default swaps they were really ingenious products, needed products for the markets, but you know, wall street sort of went overboard and sliced and dialsed them and we know what the result of that was, 2008. so i'm just saying be cautious and i think the sec will, one, i guarantee you, they are looking at some of these markets from

friday and from monday, they are looking at what's happening, who is in the markets then, and two, i think they're going to revisit this whole issue of regulation of these things, and i would be really surprised, even in a time when we're doing away with regulation if they don't propose something this year. >> commissioner always good to see you. >> great to see you guys, thank you. >> see you later michael kors and hasbro reported earnings today. courtney reagan tracking those earnings and joins us now. totes and toys >> handbags and han solo >> you practiced that. >> i did think of it a second ago. michael kors blew past profit expectations thanks to jimmy choo it owns that business as well and beat on revenues for the holiday quarter. comp. sales falling but less than expected. shares are higher on the session. traffic is still down but conversion is up kors is just one of the companies cutting back on

discounts and shoppers turns out are buying at those higher prices kors also said its business is getting better at the wholesale partners including the department stores. hasbro shares are higher, too, but a mixed quarter. the toy maker managing a big profit beat thanks to licensing revenue from movie studios using its hasbro characters but overall sales did fall, that was unexpected, after disappointing "star wars" toy sales. expectations are high going forward for hasbro's upcoming toys related to marvel's new movie releases they certainly hope getting those out closer to the actual movie release date will be a little bit better than the "star wars." >> courtney, thank you >> you got it. tune in tonight to "mad money" because mr. jim cramer sitting down with hasbro's ceo brian goldner and color ox ceo benno dorer. did i get that right >> i think so. >> hopefully they're not combining, toys and bleach

tesla into the stratosphere, following earnings a look at what to expect and what to do with tesla, next ♪ there's a starman waiting i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm.

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elon musk set himself some lofty goals over the years but when he said he's going to launch a tesla into outer space he meant it. the spacex falcon heavy rocket launched the tesla roadster into space on its first successful test flight. the dummy in the first place name is starman. he's a little still. he just sort of sits there it's named after the david bowie song, you hear the song played on the car's radio toward the end of the launch. the car was originally supposed to end up in orbit around mars but the current trajectory sends it toward the asteroid belt between mars and jupiter >> do you see that one shot where you could see the earth in the dash or in the - >> very cool >> very cool this rocket is so important, i heard last night a useless fact that it has the ability to carry a payload, the weight of a fully

fueled, fully loaded with baggage and people 747, and that is the kind of logistical capacity that you need for extended space missions. >> that's hard because it's rocket science >> it is rocket science. >> it is is that how they got the tesla, was it in this i should know this, though, in this thing and they let it out of the cargo payload how much did it cost to add that tesla to the load, whatever it was, it's mitigated by the marketing that we're giving tesla for free right now >> it was probably a $25 baggage fee. >> was it oversized? >> oversized baggage fee for that >> that's how they make their money. >> that's all those fees, that's right, when you fly the rocket you want the comfortable seat? you're gonna pay another 25 bucks. >> headlines from the future tesla roadster lands in ocean after falling out of orbit due to --

in more terrestrial news, tesla set to report results after the bill what should do you with the stock? the senior auto analyst has an overweight and $385 price target on tesla, let's keep things, jamie, grounded to what we're seeing here. what are the key one or two numbers that you will be watching tonight >> thanks, brian thanks for having me, first of all, good afternoon. model three, it's all that matters right now i think, not only around earnings but we do think there's pressure on the automotive growth margin side given the fewer deliveries in fourth quarter than were expected initially but the trajectory to 2500 units per week production for the end of the first quarter, 5,000 per week by the end of the second quarter will be the primary focus for folks. capex guidance trying to sculpt our cash burn near term and over time hopefully to understand a little bit better where the roic is coming, whether they'll shift

investment to other products like the semitruck, the model y, or maybe some other businesses like energy storage. >> okay, so when you say all that the maers is the mod e mate three what are the trigger points >> i think the big issue is that there was a big demand question going back a year or two years ago that 400,000 reservations for the model three i think answered for a lot of folks. the question is can they build the machine that builds the machine as elon's talked about so the complexities around that, the delays they've already had, the update around the trajectory to more of a critical mass from a production standpoint in filling that demand goes a long way to answering bull and bear concerns and this is another opportunity for management to give us an update and to kind of put a mark in the ground and know where we are. >> all right, well, jamie, you and everybody else watching these numbers afterhours, i'll be in for melissa tonight on

"fast money. thanks for your time tonight, appreciate it. >> thank you energy losing earlier gains, closing at a one-month low is this a buying opportunity or is weakness going to continue in 'ldetehaor wel ba tt straight ahead here on "power lunch." you can't predict the market, but through good times and bad at t. rowe price we've helped our investors stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence.

it is time for trading nation, oil dragging energy stocks down with it. larry, listen, we did t10.5 million barrels produced per day, one of the biggest jumps seen in the country. hard not to highlight that does that make you nervous about energy stocks going forward? >> well, three years ago today, brian, three years ago today, the brain trusts on wall street were talking about, by now talking about 12-15 rate hikes, okay at the end of the day, we've had a third of that, the dollar has plunged, as the global economy has surged as a result of the dollar, and the fed's in a tough spot here, and it's going to help oil we're talking about bond yields searching, the global economy picking up steam, and oil names and oil stocks and oil, itself,

are a buy here because bonds are inflamed, and the money has to go somewhere it's going to come out of the passive strategy, you know, risk parody bonds and move into commodities and buy the oil names here i love the xle >> love it do you, matt >> i do. you know, it's funny, the group -- first of all, badly underperformed the underlying commodity even with oil down today, it's down not even -- at least down more than twice as much as crude oil. in fact, you can drop into the mid to, you know, 55-57 range, and xle will be fine because it sold off in advance of that. on a technical basis, too, the group was thrown out with the baby with the bath water like a lot of other stocks were yesterday, and you saw it spike up number one, but number two, importantly, it held the 200 day moving average that's a key line.

oil finally rallying in august, and it finally broke above the 200 day moving average, and that's provided solid support since then, bouncing off of yesterday. if oil comes down further, a trading basis, it goes back up for the reasons larry talked about and the energy stocks will have another leg higher, maybe a lot higher >> you like it, but watch that oil production, a massive, massive jump in the exporting oil before the date of 2022. thank you both very much for more, go to tradin tradingnation.cnbc.com in a losing trade, avoid emotions getting the best of you. too often, they want you to add to a losing position, but experienced traders said the first loss is the best ls.os in other words, take the small loss and move on before it becomes too big.

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every nba team is now worth at least a billion dollars, this according to the latest team value rankings boston celtics and chicago bulls worth $2.5 billion warriors worth 3.1 billion, and winning does not malt tter, laks in second, and new york knicks are the most valuable franchise worth an estimate the $3.6

billion. the knicks are not very good and lost their best player to injury small consolation, the club lost porzingis on that play tearing his acl, knee joint. >> he's in pain. >> the gains of some of the franchise owners are just amazing. four years ago, mark and the milwaukee bucks were under for $500 million now team is worth a billion, that's a doubling. >> i want every team owner to call us tonight and say thank you. the purchase of the rockets elevated everything. >> he was the tide that lifted all the boats. seventh on the list. >> that's like a billion dollar per knicks' win for the rest of the year >> okay. let's talk a little bit of markets here it's been another wild day trading in the 500 point range already in the last hour of trading in the past few days, it's been frantic. >> roller coaster ride

>> i was not going to read, but, yes, that's what i'msupposed t say, but indeference to tyler who does not like the cliche, i avoided it, but, yes, a roller coaster. s&p is lower by four points. >> you know why that stinks? we need to bury it if you've been to universal, some rides go straight down. >> yes >> you don't have to go up >> they just drop, that's the whole ride that's a bad metmetaphor >> netflix is killing it 37% gains year to date no matter what happens, netflix just continues to power up incredible run >> which is impressive because it's got a huge multiple, and generally, when you are worried about rising interest rates, huge multiple stocks get in trouble because earning are so far out in the future because they don'tme menwant to take the risk >> thank you for watching "power lunch. >> all right

"closing bell" starts right now. hi, everybody. welcome to the "closing bell, " i'm kelly evans. >> i'm bill griffeth by definition, a roller coaster has to go up and down, it doesn't have to just go down like the markets today, a leg lower, now higher again, another volatile trading day the dow down 100 points on the open this morning, up 400, it's been a 500 point swing in today's session, and, here, clearly, this is the most important hour of the trading day. we have a chart to show you, monday is in the