still avoids snap. roku long. >> mr. wonderful. >> sti are are. us, going to benefit from the tax reform, in russell 2000. "power lunch" starts right now. >> welcome to "power lunch" here big battle on the street about where we should go from here, about where the market goes from here was the sell-off an appetizer. will tax bets and strong earnings continue to fuel the bulls. the stroke on track for the worst point drop in its history, missing estimates, what's that for for the company as well as investors. calls for stronger gut control how do big bank could

ends up control gun sales if washington won't "power lunch" starts right now welcome back, melissa. it's been a volatile section the dow was done, it's not just getting hit by walmart, though that's a big chunk most of the consumers staples space getting taken down today bitcoin breaking through 11,000. there's a lot of news out on bitcoin. we're going to break it down for you. rates rising again yields for the two-year hitting the highest level, and the financial crisis, and by the way, results of the two-year note auction are moments ago. guess what normal boring tyler, but this one could certainly by a market mover. qualcomm raising is

price for purchase of nxp. and reports that the super market chain winn-dixie will file for bankruptcy and plans to close at least 100 stores. general electric reportedly exploring the sale of its gas engine business. i am michelle caruso-cabrera let's get straight to the traden action this morning. seema has more >> dow was down as much as 230 points, but we are off the lows, down about 86 points the dow has recovered about 60% of the losses since the sell offlosses and it is higher, back in positive territory. act ivl discussion around whether this comeback for stocks can continue, and valuations-wise worth noting,

that its up 17, down from 18.5 on february 2nd walmart did play a critical role you can see walmart is down more than 9% verizon, travelers, merck and coke cola the dow is off just about 5% nasdaq is about 3% off its record high. speaking of technology, one key lag guard is qualcomm haz raced its bid for nxp to fend off interest from broadcom shares are down more than 2% brian, back to you.

>> seema, thank you. mean time tli of the biggest firms are drawing lines in the sand dom chu is here now with i guess a ballots on the street. a skirmish >> it is a skirmish. that latest market volatility we've seen has pretty much set the stage for a lot of folks to battle out whether or not the money is safe going to the up side in stocks, or whether it's time for a bigger pullback that a lot of people have been looking for. let's take you through the numbers and at least the commentary first of all, black rock says uber-bullish on stocks richard turnel was on hoist hoist and here's what he had to say, somewhat clarifying those -- >> provide attractive entry points i think many investors, in

talking about the opportunity to buy the dip, this is the opportunity, but it's about the change in the names we have seen that was coming through before we saw the recent dip in the market. >> profit growth means buy the dip says blackrock goldman sachs thinking most corrections don't -- and positive returns do half in the three, six, 12 months. on the bullish side as well. to finish things off, to balance it out a bit here. morgan stanley, andrew sheets says, you know what? that latest pullback is the appetizer, not the main course, a bigger one could happen. several corrections could happen, and here's what he said is driving that action he set this on "halftime report." >> i think the market hasn't had to handle and struggle that trade-off with rising inflation and po templeally weakening growth indicators for a long

time >> increases the risk. that's why it's a big debate >> thank you,dom to both of you, welcome. joe, let me begin by asking you, you know, we've had a correction depending on which index you look at we're most of the way back to where we were before the correction morgan stanley says this isn't the big one. what should i do if i think stocks already higher five years from now, should i keep doing what i've been doing, which is putting in money periodically >> you should keep doing what you've been doing if you're a typically investor, which is most of our clients right now the microstory is really good.

the individual companies with the tax benefits will drive pes down, on the macro picture things are not quite as bullish. you have a if you had pulling it back, interesting rates going higher, inflation concern, a dollar getting weak. you should probably do nothing except expect a lot of volatility, and so you can't withstand 10% declines i do think we're going back to normal type of volatility. we haven't had a 10% -- or 5% decline for 400 days that's unheard of in the history of the u.s. stock market >> maybe even a 15% decline. that does not mean you should sell it just means you should be ready for it >> dan, you know, joe has just mentioned a couple things, maybe

another 10% decline, a 15% decline, i think most seasoned investors, and a lot of our audience, let's be hon about it, are 50 years old and older, so they've been around a while. they understand that the market can go down from time to time, but what they fear, particularly if they're nearing retirement, dan, is the kind of bear market we had in '07 to '09 do you see any chance ahead there would be a really grueling, mauling bear market over the next three to five years? >> well, i mean, there's always a chance, of course, but we see that chance as very minimal. i think what we see here and the question we need to ask, gin what the ten-year note is giving, is, can you have economic expansion, can you have it mull pallet expansion in a rising interest rate environment. you have to remember the three

main players on the stage today, the baby boomers, but also guinnguinen-x and millennial have not seen a rising rate bull market. for the past 30-plus years, our bull markets have come against the back drop of declining interest rates so this is a bit of a paradigm shift that's triggering a lot of uncertainty in our demographic profi profile. >> so answer that question -- can multiples continue to be where they are or expand if you've got rising interest rates? >> yes, in our pin, it absolutely country history has been so clear on this is the historical average for the ten-year notee is anywhere from 3% to 4%.

when wid our -- that ten-year went down to 1% overseas that was several standard deviations below the mean. what we have seen in the year since that is a reflation in rates, a reflation in economic growth and rising multiples from very low levels. so our answer is you can absolutely see that. the nuance here is that for our investor base to adjust to it, not seeing this before, it could inject some volatility on the markets. so we would use it as a buys opportunity, because you can have multiple expansion, economic expansion with higher interest rates. >> joe, last one to you. do you see targets of opportunity in today's market? and what are they? >> i do. yeah, the dollar is going down, you want to like at the areas of benefits, energy, basic

materials, interest rates going up great for banks, so you can tilt your portfolio to reflect that it helps some industries. it certainly helps the global macro companies that operate on a global basis, because they bring their earnings back in dollar denominated so global mega-cap companies do very well in that environment. so you tilt towards s&p 500, larger companies, smaller companies don't do as well, and make sure your overall allocation, make sure you can withstand high volatility. it typically does mean more volatility and more shocks to the system that can still be good for you, but just be prepared for it. that's the number one thing. make sure you stay on the field. >> thank you, gentlemen. we appreciate it we have a monster week ahead. results of the two-year auction just released. rick santelli, how is it looking?

>> i tell you, i was surprised it was so middle of the road minus. the agreed -- c-minus, but it was a nuanced auction. the yield 2.255. so 2.25 and a half that's pretty much exactly it's exactly in the middle of the one issue market if you look at the internals 2.72 bid to cover, that's below the 2.88 ten auction average however, there was a distortion. 3.22 is bid cover last time that was almost a 2 1/2 year high 13.4 and direct a bit light, steelers takally over 407%, but in the end i always give pricing the biggest chunk of the grade, which was right down the middle. here's something interesting as well that's the highest yield hat a dutch auction since august of '08. we all know the two-year note

yield is the highest on a closing basis since september of '08. so we're going to pay very close attention to what that high was. let's see, who do we tos it to brian, back to you thank you, buddy do the banks have the ability to slow down the sale of guns that's next. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

you know what's not awesome? wigig-speed internet.e. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.

new column in "new york times" making some waves this morning. how banks could control gun sales if washington won't. the op-ed lays out the banks that credit card companies could by simply refusing to do business with companies that sell high-capacity guns. an dry ross sorkin is live from pyeonchang, south korea south korea and co-hosts "squawk box." i read the article and it was very interesting and you noted, because i'm sure a lot of people say, is this legal is this constitutional could they do this you nope that stripe, paypal and other forms of payment programs, they already do this

do you think it could pass legal muster >> look, it could pass as long as institutions make the choice independently, which is to say that they can't do it as a group. it can't be that jpmorgan or mastercard and visa call each other and say we're going to do this tomorrow together that antitrust lawyers would get involved in, and on an antitrust basis, it probably would not be necessarily on a discrimination basis. gun sellers are not what would be described as a protected class, if you will so, yes it can clearly be done legally. and in the conversations with so many ceos frankly over the last week, since this last tragedy, this school shooting, is what can companies do you hear so many ceos say they want to be -- have more responsibility, corporate

responsibility in this day and age, and the question is, what can they do? here's a potential something that maybe they can do companies have to decide who they want to be in business with i think in this day and age, you might have to ask yourself, do you want to be in business with people who sell some of these products. >> did any of these ceos raise concerns the very basic fact that guns are very popular in america and therefore maybe would upset some of their clients? >> no question the two things i heard over and over again about, in large part, by the way -- and i didn't quote any of them on the record in this article frankly i think maybe i was trying to protect them in part because they were asking to be protected. one was, yes, they said, look, if we are more outspoken and say anything, there's the nra and a lot of gun owners that may come

after us, and boycott our business that could have a real economic impact but two, and i'll tell you the second part, which i they is more anxiety-producing, so many said one of the real reasons is we could maybe even accept an economic boycott, it's the actual danger that we think we could put our own employees in some of them cite what took place when starbucks announced a couple years back they didn't want customers coming in with guns, and people protesting very visibly with guns inside stores. that is an issue that people talk about. >> another question, andrew -- how many people are using the banks to buy guns? do people pay cash do you think it would have to be through a credit card company? people get a loan to buy a gun >> a lot of people have been asking about the financing of guns, and let me explain what i was proposing in the article may be different from what i think some people maybe

misunderstood. what i'm suggesting is banks, issuers, or the networks at the very top could say to themselves, look, we have terms of service, and by the way, they all have terms of service. they say if you have this kind of business, if you sell bitcoins, we don't want to be in business with you. if you sell marijuana, we don't want to be in business with you. they very well could say if you want to sell one of these five, ten products, we won't do business with you. at one point the merchant makes a decision we want jpmorgan issued cards, so we're no longer going to stock any of these things at all, our we're going to stock them and not be able to accept them cards for anything. that's what ipt suggesting that's where the real leverage lies it's not in how people will be -- look a lot of people buy with cash, payday loan peoples, all sorts of way --

>> just to clarify, your column isn't all about guns for the benefit of the viewer who hasn't read it. >> yes, i want to be very clear. this is not an effort to take guns away from people in america. there are laws, and less and until people want to change the laws, this is not that conversation this is a business conversation about corporate responsibility, to the extent that people believe that corporations are supposed to be responsible this is about -- this is about semiautomatic weapons like the ar-15 and products like bump stocks and products like high-capacity magazines, which arguably, and you look at the polls, there's a lot of people, even gun owners, who find those parts and things objectionable there's other poem, there's a big second amendment, i want to -- i'm not saying by the way we're banning ar-15s, there are just certain stores that would have to sell them and decide they don't want to have access

to certain credit products. >> how would a bank like a .morgue are or wells fargo or the network company, visa, mastercard, discover, how would they ever know that 'retailer traffics in that particular kind of product >> that's a very fair question, and by the way, no matter how you enforce any of these terms of service policies, by default there has been toss some level of. >> announcer:ment. walmart stopped selling the ar-15 a couple years back. they said and publicly denied they did it for political reasons, or out of any sense of corporate responsibility they said they did it for trait business purposes. i believe they said it wasn't selling, buttic have big companies who would puckly declare they're doing one thing or another, and mopefully some

semblance of important -- and again you have to note that the a.r.-15, while you often refer to it as like it's a thing -- >> no, it's a style of gun. >> it's a style of gun we did our documentary a couple years ago. it's actually a .22 rifle. it's that type of rifle that can be added on to so how do you define it? there would have to be better rules of defining a specific type of gun. would it be something you added a bump stock to? >> i'm not going to proposed specific details it was for the community to think through, in an age when people say government is not taking this issue not just of gun control, but really doing anything in the wake of these

really tragic school shootings, what can they do so the question is, what can a business do? this is one of those things? i think you're right there has to be a debate around the definite mission of what people will not find objectionable. one institutions finds it one way, in part because they have customers that want to buy certain products, but i do think it's worthy of the conversation. >> you're in pyeonchang. we did not talk about the olympics we will perhaps see you. is it 3:30 in the morning? >> it is 3:24 and our great producing team is all awake. they're all hanging out over here, and, um, we will be seeing more of you throughout the week. we thank you and we thank them. >> thanks very much. six flags out with earnings. what is ahead for the theme park

operator utisroh lays o h gwt plan that's next. ♪ feel that? that's the beat of global markets, 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.

mom anit's not theirs.car... it's mine. mine. mine. and it always will be, forever and forever. the new rx 350l with three rows for seven passengers. experience amazing at your lexus dealer. six flags stock is in the red today, and joining us for an exclusive is the ceo good to see you. >> great to be back.

one aspect was the attendance declines which were worse can you give us some color behind that? >> i'm not sure exactly what has driven the stock down. >> wildfires, and i'm sure you heard about the earthquake in mexico that led to a park being shut down. even with that we registered or eighth straight record here, and the fourth quarter was the biggest in our history so my view is that this is definitely. >> that's a personal purchase.

>> yeah, in order to reinforce my belief in the stock in the long term. urchlts then why such qualitative guidance >> aye -- >> we never give guidance. >> even the analysts who follow your stock say it's qualitative. >> we said long-term guidance, and we historically achieved those goals. have we had you on since the stocks cuts in, you have not >> what's your tax rate going to go from what to what >> we haven't formalized, but in

essence we're going to look at saving something like 40 to 50 million for cash, which equates to 6 to 8 dollars on the share price. that we'll use ultimately to make sure we invest fully in the business and return all excess cash to shareholders via dividends and stock buybacks. >> did you buy back stock last year >> we had the second highest buyback and in total we returned about $700 million to shareholders. >> will you buy back this year >> we will always buy back stock. we've had -- it's something we do -- >> what about wages? >> absolutely. if you look at wage growth on its own, we will obviously take care of that to make sure our po employees -- >> raise tickets, our parent company and -- >> yes, they raised their tickets 17%.

we look at raising tickets in the 3% to 5% range we tend to be more cautious about doing that that's been part of our success. we would look in that range given you're a place where large groups of people congregate, i know you have security and there's metal detectors. do you notice any change in attendance in the days after some of these events that we have had do people, as we say, they're afraid to congregate in large groups do you think that's statistically accurate do they stay away? >> we have just not seen that. since i've been in the company, which has been eight years, we've grown to 30 million people safety it our number one priority you just said it, you know, we have security at the parks

certainly cases police stations are on our park property but more and more people are coming to the parks. they see us's a tremendous value offering, and they love that unique day out, which is different from sitting at home they're getting a live experience. >> most people think about six flags, the local, but international really carried the quarter. three parks opening in china this year. can you talk to us about where the growth is, and what sort of consumer in china is goods to the six flags park there >> we actually have signed now seven parks in china and the first parks open at the end of next year, 2019 we're looking at adding more, and china will be our biggest market almost certainly. yet they have 60%, 70% of the parks we have, none the the quality we're looking at

we think right now across the world we have 20 parks we think there's no reason you couldn't have 30, maybe 40 in china. >> you. >> just us on our own. that's what we try to achieve long term. we're talking about seven that we will be have signed, so more will follow. >> jim, great to see you one of the big stock stories of the day would be walmart get whacked, down about 10%, on pace for the worst point drop in its history as a public company. profit missed the mark, slowing online sales what's ahead for walmart which has been on quite a nice ride? d 'lanwel talk to one analyst that was in on the conference call a big loss in market value there. ,

new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, ♪ ♪ wake up early, o.

♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. at the marine mammal center, the environment is everything. we want to do our very best for each and every animal,

and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. here your cnbc news update the u.n. security council meeting today. u.s. ambassador nikki haley

reaffirms washington's willingness to help the peace process. >> the united states stands ready to work with the palestinian leadership our negotiators are sitting right behind me ready to talk, but we will not chase after you. the choice, mr. president is yours. a u.s. fighter jet dumps the fuel tanks into the lake near the town in northern japan. amazon is offering a new perk for prime customers starting today they'll earn 5% back on whole foods market purchases when uses the prime rewards visa card. card members who aren't prime members can still earn 3% back that is your cnbc news update this hour. back to you. >> a check on the markets right now, walmart fueling those

declines it is the biggest loser in the index, treasury yields continue to climb we did have the ten-year yield approaches 3%. 2.908. consumer staples. >> let's dig down more now, wall mark, plunging it is p coring any reagan joins you now with more. >> walmart is on pace for -- you'll remember that's when it lost more than 10% those today's results are concerning to some walmart's po forecast fell -- same-store sales were better than expected. in fact higher for the 14th straight quarter, but it's the

u.s. e-commerce sales growth deceleration it's the slowest race in at least five quarters. walmart sets it expected most of that decline, that deceleration because of that jet.com acquisition, but there was some enexpected inventory missteps that hurt, too walmart forecast the e-k34ers sales will reaccelerate. clearly some are having a hard time believing that, but u.s. store traffic does continue to gro. more than 96% of u.s. sales still come from the physical stores if you can get a customer that shops both they spend about double as much. the bulk of those sales the vast majority is still in stores. >> courtney, thank you very much it's not just a bad day for walmart investors, the worst day

ever they're losing about $30 million in market. that's just walmart's loss today the but does that make the stock a good value let's find out patrick mcover 23% grown sounds good unless you're the e-commerce department what happened? >> as courtney said, there were some self-inflicted issues that they talked about a bit on the call this morning. didn't give the greatest detail, but said they -- basically said they were more focused on some of the seasonal items and gift items over the holidays like electronics and toys, and they sort of took their eye off the ball on the basics that contributed to the slower growth rate. they also cycle the acquisition in the third quarter that sort of tailed off.

>> what does that mean, cycled it does that mean the relationship is not as lovy-lovy as we those it was. >> they bought it in the didn't they anniversary'd it is probably a better word but the other thing they talked about with jet.com is that they are having a lot move success with jet.com in urban market like northern. it's not going over so well in middle america so they did say that the we could expect jet.com's growth rate to be a lot less than what it has been.

>> i don't understand all ins and outs, because it is a very big business and it's very behind the scenes. you don't know what's going on with the website and the e-commerce fulfillment centers, so it's fairly complex, but i think that's probably big picture the right way to look at it. >> what's your take on the gross margin decline, down 60 basis points here, and all of you analysts out there call it private investment which really means discounting at this point in the game, how much more does walmart have to price invest in order to keep up its share. can you call it price investment if you're not seeing the return? >> yeah, i mean, it was

disappointing. the consolidated gross margin was down 60 base points. i was looking for a slight drop, maybe ten basis points i think most were thinking around that same level so yeah, that's the question are they going to have to continue to invest in price to this level in order to sustain the same-store sales growth? yeah, the return on that price investment has diminished from where it was that is a big question for investors. a big poring of the stocks dropped today. at this level it's probably more fairly valued, but i don't know that there's enough up side to get more constructive no, i wouldn't be buys it here. >> patrick, thanks for your

time. >> thank you. bitcoin bouncing back. the cryptocurrency sit breaking through 11,000 for the first time a lot of news out, including how one dead-crippled nation is launching its own, backed by oil. is it as crazy as you think? we debate on the other side. don't move really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer 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. tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make

sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

welcome back to "power lunch. today is the official launch date of the petro, they are doing it through an ico, initial coin offering. it's an ethereum-based bitcoin the presidential palace calling it historic. this is the same man who is on the u.s. list for being a drug ki kingpin. can this help venezuela, or an insane idea that pushes it

further into ruin? professor, let me start with you. can this thing work? >> thanks for having me. >> will this work, do you think? i think we maybe having trouble with his signal. what do you think? >> it's good to be here with all of you i don't think the petro will help venezuela get out of financial debacle, however you have to admire the create tiff it's a cryptocurrenciy backed by the aisle fields that has 5.4 billion barrels. for every barrel of oil it's going to be equivalent to a petro. the venezuelans say they'll take it as a form of taxation, that

corporations will be allowed to deduce it from their taxes if they accept the petro, and they're going to be paying workers' salaries in petros. so one way or another they're trying to make it a reality. >> they're struggling to get out of the out of ground back when we had the gold exchange, in theory you could bring your dollar to the bank and get the equivalent in gold in theory don't you have to be able to get to the oil i'm not sure they can even get it out of the ground. >> i'll flip it back i think under the safest places that oil can be is under the ground where they can't reach it if that was in dollar format in a bank account it would be in danger if it was in the format where they could sell it, it would be in danger. the fact that it's in the earth safety-deposit box, that's the safest place. >> it's one extracted barrel of

oil per petro, or one even still yet to be -- >> the latter, one buried barrel. >> is this a completed mission that their entire economy and currency is a failure? >> they don't need to admit it one way or another >> it norm all comes from countries with unstable currencies the country seems to be saying our currency is a disaster and it's a complete failure. >> i think it's failed whether they -- >> they're creating a new currency. >> what is interesting is will commercial partners of theirs accept this as payment in china? russia india? iran will they receive the petro? put yourself in the shoes of an oil service provide who hasn't been paid in five or six year? it's better than nothing form the question is -- >> is it really a barter it becomes some sort of a

crypto-barter. you could have a scenario in this country and i came on here about since months ago and came about -- you could have scenario in venezuela where there's no currency they store wealth in bitcoin. it transaction in dash, and the government's machine works using the petro. that's never been seen before. >> as to brian's question about motivation it's like any company doing an ico, right it's money if people buy the initial coin offering, they will bring in how much money to government coffers? billions >> just this one field, if you were to put in dollar terms, will be $267 billion for a country that has -- they say they have $9 billion i don't think they have $9 billion. >> what seems interesting about this particular ico or cryptocurrency, whatever you want to call it at this point, it seems like it's the only one that would be backed by a physical asset the question is how much will it

trade to that physical asset and what it would trade for in the open market which is how much of a premium it would have compared to the actual price of the undiscovered barrel of oil that's the key here. is there going to be an arbitrage between the petro and that oil >> the mechanics in theory, what the white paper says we'll see what happens in reality, two very separate things in a place like venezuela, is each petro will trade at the price of what venezuelan blended oil trades at, which is often between $7 and $8, discounted to brent. so between $55 and $60 over the last couple months >> is the value of one petro >> is the value of one petro >> why would it go up or down? to melissa's point - >> two things. >> you could literally make an ico trade rocks. there's no difference? why don't they do it off a

percentage of the oil assets then it may have some arbitrage or float based on what you think are the provable reserves of the nation >> the provable reserves are 300 billion barrels, the largest in the world. the only way this is perpetuate itself and become somewhat of a reality is if people start to use it people are going tostart using it, i suspect, out of necessity. >> can i push back on that they don't necessarily need people to use it if they want to raise the money so they could have money to take the oil out of the ground or what not, the beauty of an ico is people give them money, basically too, have this petro, and petros may never be used, and the government has the money to do with it what it wants. that's the knock on icos >> on all of them. >> that people are throwing money to buy these tokens which may or may not be usable at the end of the day and that company all of a sudden got a windfall of money to use >> the question is who is going to be the first buyer?

they went to qatar to ask them the second question mark, we have never seen a sovereign state be able to pay government employees. remember, most people there work for the government that's the form they're paid that's the form the pension funds are paid, that utilities are paid, taxes are paid this is novel stuff. is this a horrific regime? it is, but they're coming up with creative ideas with very smart people behind them in china, in russia, to think about this differently i suspect countries around the world are very curious to see how this is going to trade how is bougtswana and their diamond reserve. this is not the last we hear of this, venezuela or not >> thank you for coming back on. our apologies to the professor had some technical issues there. >> the bit calls on wall street you need to know about

street talk, back to the way it ought to be. >> that's right, because melissa is back. >> mulelissa is back, sully is here street talk. >> we're next. experand the nx hybrid... nx, with a class leading 31 mpg combined estimate.

take advantage of special president's day offers now through the 28th, on the 2018 nx 300. experience amazing at your lexus dealer. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

time for street talk analyst recommendations of the stocks you need to know about. first stock, gap downgrading the company, the ceo of gap brand leaving after three years in the role. in the statement, the company said the unit has not achieved the operational excellence it knows is possible. the analyst here says he remains confident innole navy but seems less near to medium up side in stock. >> your second and last stock today, gates industrial gtes, denver based power tranls mission company. a buy and a $23 target get this, they call it the company is a high-gloeth, high-margin company with iconic brands that is still in the early stages of its growth plan. margins are expanding. their $23 target is about 20% upside, only six analysts cover it >> there you have street talk. "power lunch" is back in two 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.

here's what's on the menu as the debate over where stocks and your money head from here rages on we have our shopping list of stocks you should think about buying right now

retail in the red. walmart shares sinking as results disappoint, and it's taking the rest of that sector down with it the former walmart u.s. ceo will join us with what is ahead for walmart and the industry >> and facebook fumbles yet again. after drawing criticism for failing to block russia's use of the platform to try to influence the election new comments by senior executive of facebook plunging the company deeper into controversy. we'll do all that and more as the second hour of "power lunch" begins right now >> welcome to "power lunch." i'm michelle caruso-cabrera. mixed day on the street with the dow in the red it is off the lows, though the dow had been down 230 points now it's lower by about 118. s&p just gone negative but barely, and the nasdaq is higher home depot in the green on the back of strong results chipotle among the top s&p 500

performers, and chip stocks on the move led by nxp, that stock up on an increased offer from qualcomm, that never ending battle within the chip sector. walmart's poor numbers hitting the rest of the retail target. all lower, lots more on walmart coming up. >> i'm melissa lee here's what else is happening. black panther is headed for a $235 million debut over the weekend, blowing past estimates. now the second best sunday in history and the best presidents' day weekend. >> resilient steakhouse will be acquired by roan capital and valued at $560 million shareholders will get $15.75 a share plus a 25% premium and albertson says it plans to buy the rest of rite aid that's not sold >> thank you very much and if the dow ends lower today,

it would be its first down day in seven sessions, if you're keeping track. the three indexes have recovered more than 60% of their losses in the great swoon of early february let's get some more on today' action seema mody is on the floor of the new york stock exchange. hey, seema >> good afternoon, tyler a choppy session thus far. down about triple digits on the dow, but not at the lows of the day. down about 123 points. check out the sector board consumer staples leading the market lower walmart on track for its worst day since twen 15. other names in the consumer space, kroger, kraft heinz, clor clorox, these larger consumer stocks all down about 2% to 4% what's also notable is the move on the dollar. higher today as the ten-year creeps up past 2.9%. last week, the weaker dollar is said to be one of the reasons stocks rebounded today, slightly different scenario let's see if it holds. moving on, a lot of notes out from top wall street strategists. the bull versus bear debate with

blackrock among others saying tax cuts will supercharge earnings and inflationary fears are overblown. while morgan stanley and others mentioning monetary policy winding down plus a widening deficit as those reasons to worry. with all that said, take a look at the dow transport, said to be a leading indicator for the broad market still down about 9% from its recent high. not quite correction territory, but weakness in names like union pacific, kansas city southern, jb hunt, all leading the dow transports index lower on the flip side, in cryptocurrency, a strong move in bitcoin futures catching the attention of traders here as south korea said to be assessing how to support the cryptocurrency eco system with the right regulation bitcoin on track for its best day, up almost 17% putting this move into perspective, bitcoin did hit a low of 5,947 earlier this month. now, back above 11,600 back to you. >> all right, seema, thank you very much. well, as the overall market

recovers from that big selloff a couple weeks ago, a number of individual stocks have led that comeback dom chu joining us with a look at some of those names >> we have been keeping track of the action with regard to the recent selloff in stocks, where stocks have bounced the most, fallen the most. to give you an idea of where the activity and action has been, given all the market volatility. 130 stocks within the s&p 500 have now rallied by 10% or more just since their intra day lows on the market lows of february 9th. so where has the buying been a lot of the big names, wrand names you might expect, check out macy's a beaten down retailer, a lunger term downtrend for some of these, but macy's stop is up 13% since the march 9th intraday lows for those individual shares semi-conductors, a hot sector today. up 15% nvidia shares since its lows on march 9th. apple, maybe no surprise there, one of those stocks that

investors have looked for a discount on. it's up now 16% from its lows. amazon.com, also on that shopping list. up 17% since its february 9th lows then netflix,kind of the faang theme you can see going on up 20% since then. just to put things in perspective, with 130 stocks that are up 10% plus, you wonder whether or not some of the same names would go back on shopping lists if there was another pullback that's something we'll keep an eye on for sure. >> thank you dom chu. >> some stocks have had a nice comeback, there are plentythat are off their highs. where are the value plays in this volatility. let's bring in david and ron, president and ceo of rdm financial group. ron, i'll start it off with you. you point off in your notes that you didn't sell a single stock in the last selloff, but did you buy anything in the last selloff? >> no, we were fully invested through all of our different clients. we didn't see anything

fundamentally that changed in fact, we were on our way to about 20% or 25% foreign, but after tax reform, we actually stopped at 15% because all of a sudden we saw u.s. stocks being cheaper on a pe basis because of tax reform i'm not saying it's great for the economy. but this tax reform was good for stocks so we stayed where we were and no, we certainly, we nibble around the edges, but fundamentally, we don't see anything that's really changed except it's gotten better in the u.s. though statistically, foreign is cheaper, we'll stay here for a little while longer. >> i get the fundamentals have not changed when we take a look at economic growth and you take a look at earnings growth. david, at the same time, there is something that did change that was what the ten-year yield did. i mean, that's got to challenge valuations at some point i mean, it did seem like the markets were digesting that. saying, you know, at 3%, do we still paythe valuations on the s&p 500 at about 18? what's the answer? >> we think more than just interest rates have changed.

earnings really came on very nicely in the fourth quarter if you listen to the conference calls, companies are giving their most upbeat outlooks they have in about four or five years. you're getting about an 8% to 10% earnings jump just from tax relief which is a real improvement to the bottom line can cash flow. we think if you look at the rising rates, which are generally slow stock rising, versus the rise in earnings that the rise in earnings is more powerful after the selloff, stocks are at about 17 times this year's earnings and about 16 times next year's earnings and a low inflation, lower interest rate environment, that's still pretty reasonable rates are 2.9% or even 3%, that's still pretty low relative to the last 10 or 20 years we're very comfortable with stocks here. we were suggesting about two weeks ago that you want to aggressively buy on the dip. we still would be buying on down days a lot of stocks have rebounded fully, but there are a number who haven't really participated in the bounce and there's still tremendous opportunities in

there if you have a three to nine-month time horizon. >> i too was confused when you said nothing had changed because the ten-year yield a started to creep up it doesn't worry you, obviously, but at some point it does begin to affect how much you're willing to pay for the future earnings >> of course, that's right for us, and again, we're financial advisers so we actually are where the rubber meets the road we buy individual bonds, and we ladder the bonds if you own the pool fixed income investment, we're worried, so jason on your show, and he said boy, when the bond investors start getting their statements and see declines, what are they going to do? that's not a worry for us because of the way we buy the fixed income at some point, when is 5% or 4% on a ten-year, when does that rival stocks as the other gentleman said,

earnings are still good. we think that earnings are going to trump interest rate and we don't think the fed is going to get out of hand because that would be the problem if they raised interest rates too fast this should be going up. interest rates should be going up the economy has called for it. we're more normalized. this is okay, but you do have to watch it and not let some other factors get in the way of valuations of companies. right now, we still think it's fine >> david, in terms of the picks you gave us, it seems like at least a couple of them would benefit from this notion of economic growth, cvs for one, u.p.s., is that a continuing theme in your portfolio, or do these businesses have specific reasons in their specific businesses as to why you like them >> well, it's a combination. they definitely all are significant beneficiaries by a better economy if you're listening to what they're saying, they're benefitting from pretty good business trends. we think it will continue and accelerate this year yet you're buying most of the list we gave you at under 12 or 13 times earnings. a very good price for good

business prospects a number sold off and haven't recovered. a number had compelling earnings calls. cvs had a great call very favorerable outlooks. yet the stock has sold off with the market we try to take advantage of those type of selloffs that are not fundamentally driven >> going to leave it there, david, ron, thanks >> thanks. recent poll from "the new york times" and survey monkey shows the the new tax overholla is gaining popularity. 51% of americans now give the bill a thumbs up compared with 46% a month ago, and even signs of growing support for the law, although not for president trump, among democrats will it give a boost to republicans in the midterm elections? reaction from larry kudlow good to have you with us >> yes >> thank you, larry. very much for being here today >> good to see all of you again. >> we had a conversation before this where i said, what's larry going to say >> yes, yes, yes

>> what's my second question going to be? >> rising tide lifts all boats you want to say people love economic growth. by the way, even trump's approval rating has gone up. i think he's 45% or 46%. >> don't fall off the chair whilia say that, larry >> trash basket, sorry >> but here you've got an economy that is growing at a faster rate. you have taxes that are now beginning to show lower taxis beginning to show up in people's paychecks. there have been numerous examples of companies paying bonuses. giving people raises the stock market has bounced back this all would be a very nice tailwind for republicans who are trying to get re-election. does this help them in the midterm? it must. >> it will generic ballots are now running about even okay they were down 15 points or more, gop. narrowed to 5, 6, and i saw a recent poll this morning, even dead even. it's going to be a tough race. >> so they have -- my simple

analysis would be that gop candidates have to run on the economy, period. >> yes >> period. they may run on trump. >> there may be other issues, but i would run on the economy growth, growth, groelth. tax cuts, tax cuts, tax cuts wages, wages >> lower regulation. >> this thing has kicked in really fast. i don't think anybody, probably including myself and steve moore and others who worked on this thing, i don't think we anticipated how fast it would kick in. and by the way, the announcement on cisco, they're bringing home, i don't know, several hundreds of billions of dollars to repatriate that blows up the -- that blows up the estimates of the federal deficit. they themselves basically covered the anticipated shortfall. so we're going to see much, much, much smaller deficits. and more growth. i just want to add one thing i really like the "wall street journal" editorial today on tariffs and why they're bad. and trade protectionism is bad

and trade protectionism is undermine a healthy economy. and this steel dumping stuff, we tried this many hundreds of times before dumping is a global price. national security, the 232, we deal with that, the defense department is always buy america. we have plenty of steel. really, i think the president should focus on specifics. china, intellectual property, i get that nafta, there are certain issues there. can't walk away from it. but you know, we must be conscious of this. we're all very optimistic. i'm very optimistic, very grateful for this. >> let's talk about another -- >> but no trade protectionism, please >> another nit you have to pick, that is with policy regarding the dollar >> right >> you thought that at i believe it was davos, secretary mnuchin sort of stepped in it in a way >> yeah, i think at least momentarily. >> momentarily fumbled >> the president was much better in the joe kernen interview, which i thought was terrific

art laughfer and steve moore and i put out an op-ed on this subject. we don't want the dollar to fall >> shouldn't a stronger economy help the dollar? >> yes, and it's a bit of a puzzle why that hasn't happened. and we don't want the administration or the treasury to talk down the dollar. you know who did this best a democrat robert rubin treasury secretary in clinton's second term. he was the best. a strong currency is in the nation's best interest so look. if the dollar keeps falling from here, then i think the fed has to take some action. they're going to have to absorb more reserves. close the balance sheet down let the rates ride up on the short end. you cannot -- look, it's inflationary it causes financial bubbles. it causes interest rates to go up no one is ever devalued their currency into a serious -- >> prosperity. >> i think this and protectionism, i'm going to call them question marks. i'm not saying they're going to bring the house down

i don't know that. let the tax rate reduction and let the deregulation work its magic on the economy and the elections. i think the democrats made a big mistake not having a serious counter on the tax cut bill. i think it's good politics, great economics, and i believe the two are intertwined. >> thank you fantastic. >> we have a news alert from julia on at&t. julia. >> yes, that's right remember that at&t had been seeking to show that the justice department lawsuit to block at&t's acquisition of time warner was influenced by president trump's bias the judge has just ruled that at&t has not made a, quote, credible showing that it was singled out for the lawsuit and as part of that rulings hadenied at&t's bid for information on the internal governmental discussions about that time warner accusation. so it sounds like that doj lawsuit to block at&t's acquisition of time warner is going to move forward and at&t, this is a setback for at&t

back over to you >> we're looking at the shares of both time warner and at&t move into the session lows there. i would think you might almost see -- well, we'll discuss later. we see stock movement there. >> i think it's worth noting here, what at&t was trying to show was that there was bias from president trump that was influencing the decision to sue to block its acquisition of time warner at&t believes it has a very good case simply on the fact this is a vertical merger and historically, vertical mergers have not been considered anticompetiti anticompetitive. we could see there's not significant impact on the shares because even if at&t cannot show there is an influence from president trump, they may still be able to show that with all of the other competitors out there and so much in terms of competition from technology, that its acquisition of time warner still would not be an anti-competitive move. >> thanks so much. the point i was making was in the past when it looked like at&t might have less of a chance

of getting time warner, we have seeb the stock move up walmart's woes, the stock plummeting on the back of disappointing earnings the u.s. ceo joins us with a look >> plus, the state of small business the exclusive results of our cnbc survey on hiring, tax reform, and the outlook for consumer spending. >> black panther delivers for fans and disney. what its blowout movie means for the movie industry and the media giant. lots more ahead. this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. yourbut as you get older,thing. it naturally begins to change,

causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

i want to bring your attention to the dow here. in just the past half houro so, we did start going back toward session lows, down to 230. we're down now 200 points fully on the dow nasdaq still hanging on to its gain >> walmart's shares falling more than 9%, adding to that weakness there. this after mixed earning rising same-storesales uta lower than expected quarterly profit let's bring in former walmart u.s. ceo bill simon. good to have you here. >> hey, thanks for having me back >> online sales growth up more than 20% year over year. sounds great, right? but the last three quarters, it was up more than 50% so we're seeing the stock get really hit very hard today what's your assessment of what those numbers tell you about their success online >> well, you know, the increase they have been delivering over the last three or four quarters was driven by the addition of

jet.com. now that they have anniversaried that, they're back to a slightly more normal rate the thing that concerns me the most when i look at their earnings report is the operating income the operating income in 2015 when they started this investment in digital was about just under $29 billion operating income they reported today $20 billion in operating income. about a 30% decline. they're really heavily investing in driving e-commerce sales, and i think we need to see a little bit more out of them they're smart people and they're capable and they know what they're doing and they're very committed. but they have their work cut out. >> you're suggesting the diversion of an equiv lbt of $9 billion to get the business going and you're not seeing enough returns should i see that correctly? >> you look at the top line and there are concerns there as well they reported about $500 billion at the top line today in net revenue. that same number three years go was $487 billion

they're up $13 billion, but it cost them about $9 billion in operating income to get that and that's not a long-term solution i think they're headed in the right direction, and they're committed to it by their action, but as i said, they have a challenge. >> what about rising personnel costs? they're paying people more >> absolutely, they are. >> how is that affecting their operating income >> it's affecting their operating income they slightly leveraged their sales in the u.s. today, which is good, but that's on a pretty good same-store sales growth you're seeing improvements in the stores, and that's very noticeable when you walk the sto stores, but that's expensive, too, and their gross margin was down as well they're getting pressures from every direction right now. >> bill, it's brian sullivan is it possible that walmart is overestimating its capacity to do well online what i mean by that is, if you go to walmart stores, as i have extensively, it's an outing.

families go there. it's a saturday afternoon thing. you have the kids in the toy department or sporting goods it's a place you go as a destination. you often see entire families in there. is it maybe that they're not reading their customer base correctly? >> well, i think they are. they're very good. they have the most data any company could have on their customers. so they're trying to do two things a the same time they're trying to deliver that experience that you talked about. and that you see and they're doing that actually very well, which is why their same-store sales are growing it's expensive both in labor and in margin to continue to do that. at the same time, they're trying to convert as much business as they can into their digital platform because that's where the customer is headed that's also expensive. so those two double pressures, as they try to do two things at the same time, is really what's putting a little bit of a challenge in front of them >> i don't know if you saw andrew ross sorkin's column today where he was suggesting

more could be done on the part of businesses, corporations, banks, to reduce gun sales he was focused on the ar-15. walmart sells guns what are your thoughts >> yeah, i read his article. i thought it was thoughtful. i don't happen to agree with him. i think the solution has to be with the state and the federal legislators. this is a crisis now, and it needs to be dealt with business can be part of the solution but what he proposes would be very, very difficult in fact, it would probably make it more dangerous. if these things are legal -- oh, and by the way, there's 5 million plus of them already in circulation. if they're legal, and they are today, you want responsible retailers selling them so they can be documented and videotaped and tracked and responsible retailers help the police in the event that something happens >> so that's how you justify walmart -- walmart does no longer sell that form of automatic weapon, as i understand it, correct, bill >> that's correct. >> but that's how you justify

walmart's position as a gun retailer better walmart do it than somebody else? >> no, that's not -- i mean, that's the practical application of it, but that's not a justification. the problem is that they're legal today. and if they're legal, they need to be managed or regulated or handled in a way that can be properly implemented into society. that's what the problem is with what's happening the governments who regulate have the responsibility through the constitution, in fact, the same constitution that provides a right to gun owners to protect the population, to provide for the general welfare. and they need to step up to that and retailers can support them and do that, but retailers simply dropping gun sales at this point today, it's not a big enough piece of most retailers' businesses to hurt it, but it wouldn't solve the problem they're still out there, they still would be sold outside of the traditional retail channels,

at gun shows and private sales where they're not tracked. i think what we really naed to do is fix the problem. >> is walmart the number one overall retailer of guns in the country? >> i don't know at this point. right now, walmart only sells hunting shotguns and rifles. >> as a matter of principle, you said it's not that big a part of their line of business what if they said we're not going to sell them anymore, period, even though they're legal? >> i think if walmart has that as a business practice or a decision of conscience, that's fine it will not solve the problem because they're still out there and still legal and still for sale it might solve the problem from a particular retailer's perspective if they have, you know, an issue they want to help, but it's not going to solve the problem. >> got it. all right, thanks, bill, for your thoughts on tough issue >> you bet happy to be here >> all right different topic, more facebook woes the social media giant battling new criticism after the u.s.

indictment against russians. today, it's facing new heat over a post from a senior level executive. investors don't seem to care how long can facebook's stock shrug off the controversy? we'll talk about just that coming up. >> it's absolute confidence in 30,000 precision parts.

or it isn't. it's inspected by mercedes-benz factory-trained technicians. or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned, or it isn't. the mercedes-benz certified pre-owned sales event. now through february 28th. only at your authorized mercedes-benz dealer.

our julia boorstin breaking news about the at&t setback in its deal with time warner. they said we respect the judge's decision and look porward to the upcoming trial that's the state from at&t >> let's get to scott with a news update. >> here's your news update this hour alex vander swan arriving for his court appearance where he is expected to make a plea. he's been charged by special counsel robert mueller with lying to investigators about his interactions with a former trump campaign official. pro government syrian militia forces were seen driving through the outskirts of the northern syrian enclave of afrin to

defend it against turkish troops they have been seeking to dislodge the syrian kurdish militia who it considered a terrorist organization >> toyota recalling about 65,000 2018 sequoias because the diagnostic function may turn off the stability control system it will also recall about 8800 toyota tundras as well >> queen elizabeth making her first trip to fashion week the 91-year-old monarch giving the award to richard quinn she sat next to vogue chief editor anna wintour to view quinn's runway show. and that is the cnbc news update this hour. melissa, i'll send it bag over to you >> some coat walking down the aisle. thanks, scott. >> just ahead, trading the faangs with guy adami and tim seymour. you can call it fast money on power lunch. atnducmo aadn e

show 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 ein the 2018 lexus es,y system plus, standard... and the es hybrid. take advantage of special president's day offers now through the 28th, on the 2018 es 350. experience amazing at your lexus dealer.

let's get a check on the markets at this hour the dow down triple digits down about 168 points. about two thirds of a percent. nasdaq in positive territory by

about a half percent most of the dow's drop coming from a single stock. we have chronicled it extensively today. that would be walmart. the retail giant off almost 10% after reporting a profit miss and slowing online sales the tech and consumer discretionary sectors are those that are leading the s&p telecom and consumer staples are your laggards. >> facebook under fire after vice president in charge of advertising posted a soaries of messages on his personal twitter page trying to correct what he felt were misperceptions about the company's role in the 2016 election julia boorstin in los angeles with that story. >> well, after special counsel robert mueller published his indictment of 13 russians for interfering in the 2016 election, facebook's vp for ads weighed in on twitter with a series of tweets, including, quote, most of the coverage of russian meddling involves their attempt to affect the outcome of the 2016 u.s. election i have seen all of the russian ads and i can say very definitively that swaying the

election was not the main goal he went on to tweet that the goal was to divide americans, stoke fear and hatred. president trump retweeted him as support for his position that there was no collusion between russians and the trump campaign and that the election was not impacted goldman apologized to his facebook colleagues for having tweeted his own view about russian interference without having it reviewed by anyone internally facebook's vp of global policy saying in a statement, quote, nothing we found contradicts the special counsel's indictments. any suggestion otherwise is wrong. of course, this comes as facebook works on solutions to prohint foreign influence of elections, including the latest which is sending postcards with codes on them to help verify that political advertisers are in fact based here in the u.s. >> thank you very much >> here now to discuss facebook's stock, fangs, chichs, so much more guy adami and tim seymour. so good to see you >> welcome back. >> i have been away for two weeks. wewere also on hiatus.

we're back next monday >> did you miss us, be honest? >> of course, tremendously >> he's been out here for the last two weeks trying to get your job >> i don't buy it. >> that's not going to happen. >> nor should it >> yeah. facebook why don't investors care >> i think first of all, going into the fourth quarter numbers, people wondered whether the kanjs in the news feeds would have a big impact. these fourth quarters were positive if you look at facebook right now win the faangs to me, that's the best kind of growth value story, roughly 28 times. you get to $9 a share. this is a $260 stock you know, to me, i think they have reaffirmed the story. >> average revenue per user, by the way. >> also, ahead of the story a few months ago and said they're going to spend more money going forward changing the algorithm, so he was proactive. i think the headline risk for facebook is significant. valuation makes sense. a lot of things make sense, but you have headline risk

if the tape rolls over instead of being a $176 stock, you could trend at $160. >> why isn't that headline risk the same for other social media? if you think the indictments, it was spread across google, snapchat, twitter. you make an argument that all of these guys have to do something about misinformation and an attempt to discredit democracy we know this is what's been going on look, i don't think facebook is singled out of this group when i look at the peer group and i want exposer, i want facebook. >> there's an issue for all of them >> i also think facebook is the poster child for the entire space. i think it's shoot facebook first, ask questions later that's my opinion. >> strong day for faangs overall. aside from facebook, we have amazon up sharply, netflix up 2% at last check. google or alphabet up 1% or so >> the thing about this, if we're in a rising interest rate environment and whatever we're in, there's no question the companies burning more cash than the companies like a netflix, to me, that's also up 40% year to

date, great run. but is this really the time to be piling into a name, look y have said and been wrong for a long time on this, i don't think the moat around their business is that decided. after this move, and again, if anything, stocks burning cash in this environment, i think, should not get a premium >> it's not manifested in terms of the stock price everything tim said is right, but the stock continues to grind higher i don't think they necessarily have a huge moat, but they have at least a five-year head start on everybody else. we have said this before netflix has become ubiquitous term people talk about you need it. q-tip, band-aid, jell-o, the whole thing. we have been down this road. i still think you can own netflix even if the tape would roll over. i think netflix works in any environment. >> nice pull on q-tip. want to go to chips. chips having overall a strong day. qualcomm rising its bid for nxpi to $127.50 that leaves you wondering what happens with avaugo, broadcom.

>> you forget our show, but power pitch? fast power we do power pitch. but then nathan does phauer pitch, fast pitch, avaugo for a lot of different read reasons. out of the space, the names you mentioned, qualcomm is interesting for a number of reasons, not least of which they have a tremendous balance sheet and valuation works. >> let's face it, in semi land, if you think about what they gave you in the fourth quarter numbers, to me, they're the mother ship for the entire space. we may not have the inventory build. bottom line, sick luicality, this is a sector that's going to work in this environment >> i know you have missed this game >> what game >> would you rather? would you rather >> can we play >> don't mock it would you rather, today, here and now. >> only about today. >> that's true walmart or home depot.

tale of two earnings here. >> not even close. >> home depot. >> go. you're on air right now, pal >> i'm looking to you. home depot would be my pick for a number of reasons. tim said it earlier in a tweet walmart is ahead of their skis in terms of valuation, in term tz of a lot of things, home depot works for a lot of different things >> broad line retail's home depot really doesn't have competition. their margins are better than low's. you think about the space, so much competition in the space. if you're going same-sale stores at 2.6 and you're treated as an e-commerce play, and in a tax environment where they should be benefitti benefitting, that concerns me because i think it's an intense battle they have ahead of them and the stocks got great news in it >> really great to see you guys. >> we missed you >> i missed you too. >> when are you back on air? >> monday. today is tuesday as you would say >> are we still curling?

>> we're curling at 5:00 over to you. >> thank you coming up, the "black panther" had a spectacular opening weekend, but you know that did you know how spectacular it really was we'll break it down for you after the break. >> the world's going to start over

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.

disney's "black panther" roared at the box office over the weekend, taking in a record-breaking $242 million in north america. that is the best february opening of all time. we're joined now by paul and fbr. we knew "black panther" was going to be big. i don't know if we knew it was going to be this big beiged on the likely audience recommendations, people saying that was great you have to gesee it, do you think "black panther" is going to grow tom here >> yeah, i do. i think this is a movie that in our post-track audience survey, 5 out of 5 stars, 88% definite recommend. that's huge. that means for the long term, this movie is going to keep going and going. and you're right

we knew this movie was going to be big did we know it was going to obliterate the february record the way it has not really about $202 million for the three days that beats "dead pool's" opening weekend from 2016 of $13 million. $70 million more than "deadpool. for the four days like you have on the screen, $242 million. again, obliterating what we here to fore thought it was possible for the month of february. >> did it also obliterate the stereotype of superheroes as white guys with square chins >> absolutely. there's a great message in there about diversity and inclusion and about breaking down barriers of what people think a superhero movie can be and when you have this kind of money behind it, when you have this kind of outpouring of support, by the audience, then that means it's going to have that long-term playability plus, it's going to stay in the

conversation people are talking about this movie, not just as a movie, but what it represents in terms of breaking down barriers and opening doors. >> bill, what kind of franchise and what kind of merch opportunities does this open up? >> look, i think that this movie is on pace to be at a minimum, i think, the second biggest marvel movie, maybe the biggest the avengers did $620 million some odd dollars in 2012 this movie will easily do $500 million plus, it could do $600 million if it holds well i think for disney, this plus their star wars movies plus their animation lineup, they're going to have bigger market share in domestic box office this year than we have ever seen before we're estimating they could have 29% share of domestic box office, up 34% year over year, over $3.2 illion so that means that their studio segment is going to set another record for profits this year and that's a nice backdrop for,

you know, a controversial stock that movies are working, which is great for them right now. >> this is an annuity, right in addition to all of that, this is an annuity. >> well, yeah, they'll make a sequel marvel - >> a sequel? >> yeah. >> lots of sequels >> yeah, we'll see about the merchandise side of it i think that they did merchandise this one as some of the other properties but that will come >> they will now >> it's a great setup. and i think that if you could somehow get away from all the tv controversy, this would be a really great day for disney stock. i think that's what's holding it back, tv >> when you start thinking ahead at disney's attempt to launch their own over the top service, can you imagine them doing, for instance, a black panther series that you can only get on this? does this change their positioning going into this launch >> well, we'll have to see how they invest in the over the top service. one of the things that i worry about is maybe they're not investing enough i would love to see them do a

"game of thrones" style series based on a hot new marvel series, and maybe black panther is the one maybe that idea is now circulating in burbank it reminds you how powerful and great these guys are at taking g them out so they're huge remember, marvel used to be spider-man, then ironman, then guardians and now black panther. they're evolving this in ways none of us expected and our hats off to disney on this. >> a fascinating story we appreciate you bringing us on paul, it sounds like we won't hear the last of you on this mov movie. more to come thank you very much. >> thank you general electric, worst day in two weeks on reports it may be selling another business. with the drop of 50% in the past year, is it cheap enough to buy? mercedes-benz glc

with its high-tech cameras and radar, contemporary cockpit, 360 degree network of driver-assist technologies, and sporty performance, what's most impressive about the glc? all depends on your point of view. lease the glc300 for just $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5,

only with td ameritrade.

. let's take a look at the beleaguered general electric, falling below $15 a share on the heels of a report ge may be thinking of selling its industrial gas engine business boris, general electric is now

just general or electric, because it's lost half of its market value in a year any reason right now to buy this stock as a value player or is this a value trap? >> probably ge is like a black hole hidden behind the son of another galaxy meaning the balance sheet is the simply impenetrable at this point. two critical risks on the horizon. possible dividend cut and possible rating review those things could really hurt the stock. i think if you're a value investor with maybe a five-year time span, a quarter position here just to basically see if they play all their cards right and have a vertical takeoff from this point might be an interesting position but i think it could go down to as low as 2008 lows before it bottoms out. >> wow. >> it could be a long, terrible grind, which is why if you're going to put a position into it, it has to be a tiny piece of it. i would never go all in at this point. >> turn into captain lectric ari, anything on the charts that suggest a bottom for ge?

>> forget about the tiny position you want no position in this thing. the falling knife continues here, brian. this is a very strong market there's no need to be trying to time bottoms for a bearish buy like ge. in terms of levels, you have to go back to lows from 2010, 2011, around 13.75 to mark support i'm not quite convinced that even holds when it comes down to it, it's a very simple equation for me. bearish trend equals stocks to sell and stay away from. ge's got a bearish trend. >> there you go. better stocks out there. thank you very much. for more trading nation go to our website, tradingnatio tradingnation.cnbc.com. the latest from tradingnation.cnbc.com and a word from our sponsor. >> position size and risk/reward ratio are two important aspects

of building a winning trade. you don't want a single position to be too big a percentage of your tradeable assets. additionally, you want to make sure there's enough property potential to justify the risk you're taking. consistently constructing suitable trades and adriheng to your exit plan can help you build on trading successes

each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. check please >> welcome back. brian made the point earlier that "black panther" was great because it proved you don't just

need a super hero white guy with big chins. can't we have a super hero with small chins? >> chins of all sizes. >> i think my point was noted. >> hashtag, we need a hashtag. >> #weakchinz. >> justice for weak chinz. >> i just want to point out we're close to session lows here on the dow a big part of that is a drop we've seen in shares of walmart, down almost 10%. real impact on the rest of the sector target shares down almost 3%, kohl's walmart's discounting will cause the others to have margin pressure that's the knock-on effect. >> they're selling lots of things they pay $4 to ship and the item is $2 >> it's crazy. >> so, that's not a -- even i can understand that that is not a formula. i have watched a fair amount of the olympics tonight i'm going to look

forward to watching lindsey vonn and what will certainly be her last olympics. the downhill i wish her well. she's overcome a tremendous amount. >> we'll all be watching. >> thank you for watching "power lunch". >> welcome back, melissa. >> yeah, thank you. >> "closing bell" starts right now. ♪ hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> we were thinking, underdog was a super hero with a weak chin we thought of others those are human beings and we don't to want call them out. i'm bill griffeth. we are setting session lows, down 240 points, largely driven by walmart, about 70 of the points pushing it lower. that's taken a hit on earnings look at the nasdaq