he's unwound his put positions and he told me there is -- that is a new record high today up 7%. give me some names. >> apple new eyes each day. >> ex pedia back of bookings. >> follow lowe's. >> celgene opportunity. >> worldwide growth follow cisco. >> "power lunch" starts now. man, those guys were fast. they followed scott's directions to a t i'm tyler mathisen here is what is on the menu. a volatile session to end a while and volatile month major averages recovering most of the losses from the big selloff but still down for february so what madness will march bring? acman's next target, you heard from scott and the gang, the hedge fund taking a stake in united technologies. why utx and should you follow him. utx talking about maybe getting unhooked up. shares of lowe's getting

hammered jokes i could put in the number two home improvement chain unable to catch in so far right now, at least on the housing boom so why is lowe's stumbling when home depot is ringing up the wrej -- registers. we'll explore that and more as "power lunch" begins right now welcome to "power lunch. i'm courtney reagan. and tyler said it, he used the v word and stocks wiping out the gains. the stocks were up as much as 166 points and now up just about 11 trying to claw out let's see what happens this hour it will be the first february loss for the do you since 2009 more on that staggering stat and others ahead and check out some big movers. we have amazon, and apple and boeing at all time high. and it is not price line, it is

bookings, soaring on the revenue. and tjx rallying, the retailer missing profit estimates but revenue beat and raising dividend that is the parent of marshal's t.j. maxx and home goods. >> great to have you here today. february wild ride in the marks about to come to an end because february is coming to an end and coming to an end long winning streaks. bob pisani at the new york stock ex change. >> it is an ugly february and records are falling. let me show you what happened. so far down 2.5% it is not over yet but if this holds up, this could be the worst month since january 2016 and not just for february we're on pace to snap a ten-month win streak in the s&p 500. that is a real record. the last time we did that was february of 1959 we are down 2.7% in the dow. we're set to register the first february decline in nine years

you heard from courtney. so 2008 to go back -- 2009 to go back for that. and what is more important is the poor showing as what is happening since the bottom so we bottomed on the open february 9th i pick that date and you could see technology and the cyclical group has rallied rather notably financials and industrials and materials all of the cyclical outperforming the market whereas more defensive names like consumer staples are flat. this tells you the story about the global growth and the earnings at record highs in the cyclical sectors are still being met with approval by the overall market and that is a positive. meantime today, lightening, the s&p 500 easing up and 25% of the normal volume in the middle of the day and same with the mid cap and the russell 2000 oil stocks have a rough day because of the inventory and the

whole market there are some of the big names in oil back to you. >> thank you very much. investors getting ready to close the book on february where do we go from here march madness. and let's get some estimates from mike collins and bob colack yos and head of quantity research at jp morgan. that means that i understand nothing of what you do but be that as it may, for much of the last decade the major worry among -- economyists and in the market place was of deflation. can we agree on that now we seem to be worried more about inflation. is that a bad thing? >> comparing one to the other? >> yes i think very good point you raise. i don't think it is a bad thing at this very moment, in this stage of the cycle i think what we're seeing is firming and inflation, and

deflationary risk of starting to bait and these are positives a year ago we were talking about deflation risk and the fact that wages are showing some strength is also positive the ten-year has been moving higher but i don't think the current level should be a concern at least not for equity investor and we need to be higher for that for profit and multiples and i'm not worried and i would say there is perhaps an overhype on -- >> i sort of agree with you. to jump in here as well. for a long time, we said -- inflation is 2%. 2% we're not getting to 2%. now maybe we're getting to 2% and everybody is going now we're at 2% and we're worried. and maybe we're getting what we want and we're overworrying. >> there is an adjustment process because we've seen the inflation and you're seeing volatility pickup and the selloff this month has been unrelated to fundamentals and

specific technicals, systematic and too much exposure and then it is now very easy to turn back and try to back the story saying it is all about inflation and inflation is scaring the equity market. >> inflation is, mike, not usually good for bonds because it implies rising interest rates which erodes the value, the price value. but you are saying that right now you're seeing some price signals that say, hey, it is time maybe to step in. >> yeah, i mean i agree. a lot of the inflation concerns are overdone i think there is a fair amount of inflation priced into the market the tips market are pricing in at 210, 220 forever. and maybe we'll hit 2% or get above it but over the longer term and even five or ten years out, i still think the disin -- disinflationary forces will come in. >> and are they buying long end,

30 year and 10 year. >> believe it not, we're in a position where our clients are very long-term investors, insurance companies, and pension plans and they are definitely buye buyers stepping into the market looking for high quality and long maturity, 30 year corporate bonds to hedge their pension liability. >> could you expect companies to leverage their balance sheet from the benefit of tax reform and earnings or cash flow growth and buy more stock. >> i think companies might decide to pair back using the cash coming from tax think some of it does get reinvested how much we need to see. the buyback trade will be strong this year. >> you do? >> yes. >> so you think companies will buy back more of their stocks. >> yes i think they buy back their stocks we put an estimate of 700 to $800 billion in buyback, a trend in tact versus last few years and a tax cut that opens up cash and the repatriatation from abroad

you do get reinvestment but companies could use the cash to repair the balance sheets and pay that down. >> and final question for you, mike, yesterday mr. powell testified in -- on capitol hill as the humphrey hawkins testimony. he used the word "over heating" which overstimulated or -- or over-nervoused this and do you see three rate hikes for this year. >> this year we're still in the three to four camp .possibility as powell implied maybe shifting toward four maybe two next year. but ultimately -- >> the door is open for four >> the door is open for four but to do four this year and even two next year, you have to assume that the economic environment is probably going to look like it does today which is really good. really positive. really synchronized and i have -- you have to do that for two years to continue hiking rates and i think that is a

stretch. >> fund manager of the year and we met out there in chicago a month or so ago. good to have you here and thank you to bob azle. >> lowe's stair's down 5% following an earnings report falling short of expectations. rival home depot had much stronger numbers again so what is home depot doing right? let's bring in joe feldman from telsy advisory group i feel like we ask the same questions of the analysts that cover home depot and lowe's. you are operating in the same housing environment so what is the difference when it comes to execution between home depot and lowe's and why is home depot getting it right a little bit more often than lowe's. >> well two things that at a high level that differentiate the two off the bat are the real estate that they both have home depot has more exposure to larger urban and suburban markets around the country and lay on the fact they have

more exposure to the pro-customer almost 10 point difference 40% of the sales from the pro and only 30% at lowe's and those two things right there set you up just the way the top line starts. sales at lowe's was very good this quarter and the outlook for sales is pretty solid as well i think that is fine but as you mentioned, the execution is really where things start to separate. and home depot just seems to be i little more efficient in the way they operate their supply chain and the way they do merchandising and the way they have tasking of associates in the store and the interaction with customers if you look at -- as a rate of sales, their sg&a expenses aren't that different. it is just with the extra volume that home depot can get, that could flow through to the bottom line better. >> so it looks like low's is going to take the opportunity to accelerate the investments going through. they talk about the six plank strategy but one thing i found

interesting is that their focussing on conversion and inventory saying it is not just enough to give our employees a bonus but to train them better to help the customer better. does this suggest customers are coming into lowe's but disappointed and walking out and that is where they are falling in inventory isn't right or the price. >> that is what the company was talking today on the cron fence call they are getting the traffic but unable to convert it and this investment and better training and re-engineering processes for their associates should in theory help. i was a little surprised to hear them say that quite honestly because historically they've done a good job when you get into the store of helping the consumer i feel like they're customer service is quite good. but obviously there is room for improvement. there is always room and now with -- with certain projects and people getting more tech focused in homes, there is

reason for lowe's to invest in training i think it is a good practice. look, we're hearing from walmart, from target and others, home depot, everybody is investing in labor and some is going toward trading so that could help them down the road. >> very quickly, joe, how do these two stores do with appliance sales? i was sort of skeptical when they got into that line of business because it felt like allied but maybe not core how have they done >> they've done quite well quite well it is very interesting to watch as sears, who used to be the largest dealer of appliances is losing shares through the past decade or so home depot, lowe's, best buy have been gaining share. and even this quarter again, lowe's said the strongest category was appliances. they are executed on that side of the business and they have abroad assortment and the number one appliance retailers and home

depot is not far behind. the two have done well in the category and it doesn't seem to be ending because it is a good replacement category and as people replace, they're trading up because the technology is better in the appliances so the ticket is higher. >> speaking of higher tickets, we'll watch with the prices because of the tariff on washing machines and the cfo said everybody is raising prices to go with it and grab the extra margin while they can. thank you, joe feldman. >> i wonder if there will be a bounce in dryer sales. bounce. >> jokes bad jokes. united technology rising today on news bill ackman is building a stake in the company but his track record hasn't been so great so could the latest bet be a winner. ted jay powell talking about ra hikes bill gross joins us soon to talk bill gross joins us soon to talk about itdex investing for that ?

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some breaking news moments ago bill ackman building a stake in utx, united technologies sending the stock higherment we'll bring in scott wapner and morgan brennan who knows united technology like nobody else. she would name every one of the hvac systems scott wapner, first to you >> tall order. >> any -- any knowledge on why this is such an attractive company to bill ackman. >> the only thing bill would

tell me is we think it is a great company. i don't know the size of the stake. but i think leslie made this point on our program which just ended that this is kind of acman maybe getting back to sort of his bread and butter type of investments. at least one sort of part of thoed those and those are big industrial stocks. leslie mentioned those in the past the canadian specific and railway. we'll find out in the coming weeks as to what bill ackman intended to do, whether it is an activist position or a passive stake like some of the most recent ones. leslie and i -- let's bring you in we were talking about to walk out here and your gut is that this is an activist position. >> it could be he's had success in industrial activist positions when you look at companies winner for him. and canadian pacific and railroad and air products have been big winners for bill ackman when you look at other stocks that haven't been as successful, it is some consumer names that

we think about target namely, chipotle. they have not been as successful. >> jcpenney didn't work out so well. >> and from a return standpoint, he needs something to boost his returns this year through february 20th, pershing square down about 5.6% and last year down 4% and the year before that they were down about 12.5% and before that they were down 20% so -- >> they need something. >> they need something. >> fine. but morgan brennan, this is not like some beaten up stock. united technologies has done dog gone well the last couple of years and also by the way a gigantic corporation i wonder if you could move the needle. >> bingo it is a jigigantic corporation d a industrial koconglomerate and what we're seeing is the deconglomerate and if you look at shares, they are up to date but they've been up about 5% or 6% over the last

week because last week greg hayes the chairman did say he wassen gamg -- engaged in a portfolio review of the company and he expected to have results by the end of the year the possibility that he could break up one or more of united technology big businesses, the big businesses being aerospace and the climate control and security business, the hvac business, also oatis elevators and said aerospace could be # $45 billion and $50 and ottis 12 to $13 billion and so it is not surprising. >> could this be what bill ackman is betting on. >> morgan makes the most important point and all she said is the company has shown on its own a willingness, as brian said, move the needle. which would lead one to believe that why wouldn't this be an activist position going into something when you know the

company is already discussing it internally and has publicly said they're looking at sort of strategic -- >> they are open to it -- >> -- ideas so throw your hat in the ring as a big hedge investor to have a say as to what you think the best ideas would be to accompany what those are receptive to doing something. >> and it is important to mention honeywell. and they had discussions with utx about two years ago to the day. and there was an activist in there, dan lobe who had been pushing for them to spinoff the aerospace business an the company decided to keep the aerospace business and sell off everything else. but dan lobe was happy with that decision it is -- it's something where you are starting to see the companies streamline and get rewarded for doing so. >> honeywell is a great example. you have other companies like pent air, dover and ge which has its own sort of set of circumstances right now. but ge looking at potentially

breaking up its businesses siemens is spinning off the health care. there is a lot of this happening in the sector right now. really the only stock you don't see it happening with are the stocks that are absolutely ripping higher, outperforming and generating cash like boeing, 3m and caterpillar. >> i think in the days ahead if not weeks in front of us a little more clarity on what exactly bill ackman intends to do now that the news has been made public, that he made it public i think that tells you that perhaps you could expect some sort of commentary from him in the days ahead, whether it is through a letter or a filing or some sort depending on what size of the position it is. >> are you saying that with a wink >> no. >> wink wink or is this a wapner guess. >> it is a straight guess. the fact that the position is public leads me to believe that something else is going to have -- another shoe will have to drop somewhere that we'll learn more about why the

position was taken in the first place. >> and he's out -- >> guys -- >> he's out of herbalife. >> what did he lose on it? >> his initial short was a billion dollars and then he restructured the short into most recently puts which he has fully unwound so he is out we can call it that. he may have a diminimus or nominal position and he is out and that book is closed and the story is over. >> thank you very much appreciate it. thanks up next, i'm over there. what is the best time -- is that what it says what is the best time to buy -- >> any ime. >> what is a bad time. >> we'll tell you when those stocks are most likely -- oh, the stocks and tonight don't miss an interview with under armour ceo kevin plank on mad money it is the latest earnings report an indication that a turn around is starting to take hold there

is starting to take hold there lots more "power lunch" ahead.i. fidelity. open an account today.

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think twice. but q4 are the best for alcohol over the last quarters the alcohol companies are all of the buzz first constellation brands on average popping more than 11% in the first quarter. round foreman up 6% and coors about 2% and in the fourth quarter constellation up 13% and foreman 8% and coors with average returns of about 3.5%. now overall, alcohol stocks outpace the sector for the full year constellation brands posting an average return of 40%. foreman up 21st% and coors with 10% returns on average so i guess never a bad time to drink. >> if they outperform all of the time thank you. well it is nearly two months since bill gross called the end of the bond bull market and look at yields since then straight up. so 3% on the ten-year coming soon it is not that far away.

we'll ask him. and imax shares down as the company is facing too much competition omfr theater chains and even netflix the ceo is about to join us. stay with us i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically.

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hello, i'm sue herrera here is your cnbc news update. police taking a teacher into custody after responding to a report of gunfire at a high school in dalton, georgia. the police tweeted that no children were hurt or in danger and had been evacuated the scene is secure. it is about 90 miles north of atlanta. the late reverend billy graham lying in repose in the capitol retunda. receiving a tribute from the nation's top political leaders, including paul ryan who calls him america's pastor >> he minnisted to all walks, from some of the greats whose statues line this very hall. eisenhower, king, ford and

reagan, to every day citizens lining up to pay their respects. >> russia said the international olympic committee has reinstated that country to the olympic movement despite two failed doping tests by the athletes at the winter games. the olympic committee president said they received a letter from the ioc announcing that reinstatement. that is the news update this hour brian, back to you. let's get a check on the markets and your money, your money. trying to end the wild month with gains the dow was up 166 points earlier and it is going to be the first -- unless we have some big run at the end, it is the first february loss for the dow since 2009 and end that eight-month -- or seven-month winning streak for the nasdaq. if we finished higher on the nasdaq which probably won't happen it would be the first eight-month winning streak since when the movie "seven" and thanks for everything julie new mar was the number -- 1995. >> what year was it?

>> a 23-year win streak tied. >> not going to happen >> wa-wa. and imax shares reporting lowing and after a box office led by "black panther" and several analysts are pointing to the company's 2018 guidance for the 145 new theater installations coming in below streets expectations so will a year of blockbusters help boost the stock. joining us in a first on cnbc interview is ceo richard bill brand. thank you for being with us. >> happy to be here. >> so it looks like the street was looking for more theater 134e systems. can accord looking for 160 and piper jaffray 150 and how did you decide on 145 and are you disappointed that the street is disappointed with that number. >> i'm disappointed the street is disappointed. i thought we would have a 8%

move but i thought 8% up in china we've had issues for a long time about finding the right movies in chinese new year we doubled last year's box office in the u.s. as you -- as you see "black panther" in the lead-in is killing it all over the world not just in the united states the results are good i think people are off track with the install guidance. the second highest install guidance we've given in our history. about the same as last year. last year we said we'd do 150 and we ended up at 169 we like to be conservative when we give our guidance and see how the year plays out these are buildings that you have to build or place that you have to retrofit and we don't want to overpromise but our backlog is at record levels. frankly -- i was caught off guard by this. to me that was a nonevent. >> so what do you think the focus should be then beyond the 145 theater installations, when you see netflix shares continuing to go higher as more as mon of us are

binge watching on the weekend but in the privacy and comfort of our own home. so what is the bullish case for imax going forward. >> i don't think that people go to imax that choose to watch on n netflix. and the movies are stars wars and black panther. those are the movies to go through with your friends. they are social experiences to share. i think netflix could have an impact on the secondary movies but for imax it is not a factor. and if you look at the box office results, they don't support netflix having any kind of an in road to imax. >> how big of a part of your business today or how big will it be if at all will be -- the sort of dining and drinking experience in a theater? is that something you are banking on. >> not at all. we're not a dining and drinking experience we're the best way to see movies

on the planet experience and i think our core audience, our fan boys, millennials, people older than that they're people who want to get the most exciting immersive movie experience on the planet and they get that in imax. i think other people -- the people who like movies with two people in a bar drinking wine, that is the audience for dining and drinking so different market. and if you look at our market and you look at our share, we had our best weekend -- second best in the 50-year history of imax two weekends go for the opening of "black panther" and for t for the chinese new year where we doubled our last year box office so people writing the ownity aries for people like imax aren't seeing the results are break out on the upside. >> is 3-d dead >> you know, dead is a strong word >> is 3-d not doing well.

>> we've -- we've reduced the amount of 3-d programming we do. we've cut it way back and the reason -- and we've said this since 3-d came on the scene, for the right movie, think of avatar or the first alice in wonderland, 3-d is extent. but hollywood got carried away with it and started making 3-d for every movie and it doesn't belong in every movie. so we've changed our programming to much more 2-d and since we've changed it, our in dexing has gone way up. meaning our percentage of the box office our capture rate has gone way higher so not dead. but definitely in a growth mode. >> richard, i want to circle back to the numbers that we talked about box office sales may be higher but aren't the number of tickets being sold down, which means fewer people are going to see movies in movie theater establishments like imax theaters. >> think i have to look at that on a market by market basis.

in north america the number of tiengt -- tickets is flat but the premium ticket sales are way up and looking at developing markets like china with a box office going up, russia, japan is one of the best markets for us india. remember we are a global company. only about a third of our box office comes from north america. so the number of tickets sold in the markets we operate are way up >> well thank you very much. we appreciate joining us ceo of imax. >> thank you. to the bond market and check in with rick santelli tracking the action at the cme rick >> hi. tyler, two day tells you a lot we're down a couple of basis points and we gave up what seems to be referred to as the powell pop yet. but what is interesting is that two years are unchanged, fives are down one and tens are down two and 30s are down three so more curve flattening. and we've talked about how that is a directional trade for what happens in the fixed income but

for stocks let's look at year-to-date on the s&p 500 on top of the ten minus two yield curve spread look at how it just -- it is just amazing the fact that we're flattening may be another reason to be more optimistic on stocks. look at one week of the dollar index. it is now popping as you know. how important is this rally? very look at year-to-date chart and the top of that in the tenth, 11th of february is 9044 and we're now at 9062 and above the midpoint of the year on the closing basis high versus low which is around 90.52. this could be bullish if it stays here and closes here back to you. >> rick, thank you. well speaking of bonds bond king bill gross has spent years compiling one of the most expensive and rare stamp collections in the world and now he's putting it up for auction that suitcase that you see right there -- if you are on the

radio, there is a guy caring a suitcase you wouldn't believe how much the contents inside are worth. we'll see for ourselves some of the most rare unique and expensive stamps an bill will join us on the other side of the break as well. stick around most etfs only track a benchmark. 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. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. bill gross is exiting one of the longest held positions no it is not bonds, it is stamps you may not know it bill has one of the most valuable privately held stamp collections in the world and he sold a little bit a few years ago and now putting more up for auction on this rare collection we are joined now by bill gross. and his stamp adviser for the past 25 years, charles shreve director of robert a. segal options and we have some of the most valuable stamps right near. i will not get near it put your drinks down bill, why are you selling some of the -- i mean almost

priceless stamps >> well, you know, brian, high quality stamps are a little different than corporate profits or stock prices. at least from the stand point of a collector like myself. there are limits at some point to a collector's portfolio because if pursued long enough and with enough money it is possible to fill in all of the spaces in an album in other words, to get them all. and that is the position i found myself several years og when i first started to sell my foreign stamps and i figured it was better to give other collectors a chance to own the stamps and use the proceeds for philanthropy which i've done, perhaps $30 million to $40 million already. so this is what i plan to do for the next sale of u.s. stamps it is not that i don't still love stamps. it is just that all of the spaces were filled >> and you had them all. and a lot of proceeds are going to charity, correct. >> all of the proceeds have gone to charity and will go to charity. yes. and so it is any at personal

gain but it is an attempt to benefit philanthropy and an attempt to give other collectors a chance to own some of the rare items which i started to own in 1993 so what is that -- seven plus 18 so it has been 25 years. >> so charles shreve, help us understand stocks and some people think they're expensive. maybe a lot of asset are expenses and some of the viewers with money may think stamps are the place to go so let's focus on. this the bible block, the estimate is 500,000 to the 700,000. these are the -- i'm not going to touch them. trust me but what make this is worth maybe a million dollars. >> this is particularly a great treasure of the united states stamp-dom, first stamp in 1947 and this block of six is the largest known multiple and represents 60 cents that the fact that it wasn't used and saved 60 cents was a day's sal

ray rayry -- salary at that time and it ended up in a bible held for dozens of years before re -- recovered years later and now the only in tact box of six. >> and we hear about the inverted or misprint this is an upside down steam ship so the governmental error makes it worth more. >> absolutely. stamp collectors love errors and the upside down and the inverted but what make this is block so special, it is the largest known in tact multiple of any inverted stamp in the united states and this was unheard of when it was first issued in 1901 it discovered about 75 years later. >> and bill, i love looking at this never seen this before you have one letter from the pony express and the best part is the country was so small, you didn't have to address it. this is to ben holiday in san francisco because there is only one ben holiday at that point in

san francisco. i suppose what was the most fun for you. the arc of the covenant if you will, the one stamp that charles or you found on your own that really gave you the most -- oh, my gosh, we got this one >> well, it is the only u.s. stamp in private hands, it is called the zeeg rell, and it is wonkish, but i bought that in exchange for a block of in verted jennys, the upside down airplane and it was the key to forming a complete u.s. collection of stamps since 1847. so that was the key to my collection >> how big is this world charles? we have -- we'll have robert frank and talk about a monay action and there is people that love art how many realistic buyers are there for stamps, for this collection >> well this is a very high end level. but there will be hundreds of people around the world who will be bidding there will be a live auction

but people could bid live on the internet and so there will be hundreds of people and it won't be limited to just buyers here in the united states there are very fanatical stamp collectors in nations like china and india, charl. >> charles, thank you for bringing these in. get them out of here i'm nervous. i could be clumsy and i don't want to touch. it is a couple of million dollars sitting in front of us let us know how the auction goes bill we're not going to let you go yet this is very cool here but let's get you to comment on some things you are known for. a couple of months ago you called the end of the 30-year bond bull market and other people have gotten on board that view with you. the question now of course everybody thinks is how high do you believe rates are going to go in maybe the next year or two because everyone has the fear of, yeah, we'll get to 4% but if we get there too fast, we're in trouble. >> yeah, i don't think we'll get to 4%. i think we'll get to 3% but that

is not far away. i think the key, brian, is to compare this to the growth rate of nominal gdp, the fed doesn't like to do that but basically what they are doing when they look at inflation and look at real growth, a combination is nominal glenda nomin nominal gdp when ismoving ahea at 4%. and since 2010 which is the new era or normal of financial markets, the spread between nominal gdp and the ten year is about 50 basis points now with nominal gdp at 4.5% and that is 2% growth and 2.5% inflation a ten-year treasury is a huge spread and it would apply perhaps 4% at peak in terms of this bear market but i dobts -- i don't think because the ecb and boj are domain ating global fixed income

and keeping their rates low which permits arbitrage for u.s. treasury i think we'll hang around -- i think the ten-year will hang around 3% for perhaps six months or so. >> 10% would be high you scares us for a second if we are in a bond bear market, how do you make money? does that mean stocks are a good value or will the same things that are causing bond fear, inflation fears, the fed and interest rates, also kill the stock market rally >> well, to some extent, and it is a tricky comparison between stocks and bonds at a certain interest rate level. but stocks in terms of the discounted profits, or discounted cash flow, they are related to a ten-year interest rate on u.s. treasury. to a certain extent they benefit because corporate profits could hopefully rise with it but at some point, as wages increase and profit margins

diminish, then they become not necessarily threatened but the progress going forward becomes capped and so i think stocks will be influenced by ten-year treasury but if they hang around 3%, it is basically profits as opposed to interest rates which will be key. >> we heard yesterday from new fed head jerome powell who also by the way is the first noneconomist head of the fed if not ever, than in decades were you comforted by what he said can you grade it did you feel he did a good job and could manage this inflationary story with not spooking the markets >> well, i guess he did a good job. he's very clear and succinct and i think they are expecting two hikes in 2018 and perhaps he alluded to four. i don't think so i think two to three hikes in

2018 or what we're looking at and so we end the year basically around 2% or 2.25% fed funds so yeah, nominal gdp is the key and if hangs aroundgdp is key. the bond bear market is mild, still in hibernation, so to speak. >> we appreciate it, bill. i'm going to take this pony express letter as a thanks i'm kidding. i want to show it as we go to break. >> put it on your horse. >> there we go this is the open pony express l i was talking about. it says ben holiday san francisco. that's the way it used to be that will go for $100,000 plus i will leave it here and back away. >> leave it to me, won't you >> don't do that. >> how many stamps do we need to put on it?

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papa john's no longer the official pizza provider of the nfl. that doesn't mean pizza and football won't continue to be consumed together next season. details on that and more with kate rogers. >> papa john's loss is pizza hut's gain here. papa john's announced it was terminating the sponsorship with the nfl three years early. the news was made by steve richie on an earnings call and comes after papa john's founder and former ceo john schneider famous famously led to declining sales last november. they will work with teams and players and the split from the nfl was amicable less than a day later the nfl and pizza hut announced a multi year deal. while the terms weren't disclosed the nfl told cnbc it is larger than the deal with papa john's. the deal begins april 1.

nfl commissioner roger goodell says pizza hut has the creativity we are looking for in a partner. we look forward to working together with them to make the at-home nfl experience more exciting than ever for fans. they have several thousand more locations than papa john's, so more opportunities for marketing. >> that was so fast. one partnership ends and the other -- >> less than 12 hours. >> somebody waiting in the wings. >> exactly >> pizza hut and not domino's which is the largest of the three. >> don't write football's obituary yet. >> for viewership? >> yeah. >> just in time for the draft. >> that's important. >> that was a break-up someone else is getting back together mcdonald's and disney seems so perfect for this segment of the business. >> this is after a decade apart. mcdonald's and disney are teaming up to bring disney toys and promotions back into mcdonald's restaurants the partnership was announced yesterday. this after mcdonald's last month announced its revamped happy

meals which no longer include chocolate milk or cheeseburgers in an effort to cut back on sodium, calories, saturated fats they can still be ordered but they hope removing them will reduce how often they are ordered. all happy meals will have 600 calories or less under the changes by june in time for disney releases including "the incredibles 2. disney and mcdonald's had a partnership that ended years ago. there was concern about the calorie count in children's meals at fast food. >> doesn't the junk make a happy meal happier it's probably the right move, but gosh >> it's smart to remove the items. you can still get them. >> what can you get in a happy meal now >> you can get juice, fruit. >> apple slices. >> can you get chicken tenders

fries? >> i believe -- >> no cheeseburgers -- hamburgers, not cheeseburgers. >> and you can still get the cheeseburger. >> on the side, not as part of the happy meal. >> you can order it, but they are not listing it. >> somebody told me -- and this could be fake news -- putting apple slices increased french fry sales. parents ordered fries because they would dip into the kids' fries. all right. kate, thanks >> coming up in the second half of "power lunch" we are always a happy meal a rare look at the secret of silicon valley company palantir. josh got to sit down with the ceo. and why dick's sporting goods are making a move with guns many are cheering and others are jeering they'll stop selling ar-15 weapons immediately.

welcome back here's what's on your second half menu. a move higher in yields spooking the stock market yesterday rj powell sounding more hawkish than anticipated

what do you buy in this environment? we have the rising rate playbook ahead. dick's sporting goods with new bans on certain gun models and age restrictions is it worth the risk for the company? and amazon buying ring for $1 billion the ceo of latch who partners with walmart will join us for a look at the new fight, the battle for your front door i'm brian sullivan lock it up "power lunch" begins now >> welcome, everybody, to the second hour of "power lunch. i'm tyler matheson glad you could join us let's check on the markets stocks swinging between gains and losses the dow traded in a 260-point range. remember when that was so odd a year ago now it is common place now you see the dow industrials are up 55 points s&p 500 higher by 13, a half percent. nasdaq up three-quarters of a

percent to 7385 and change united technologies is the dow's main leader after scott wapner reported bill akman has taken a stake in the industrial giant. let's look at some of the movers now. lowe's sinking while etsy is soaring up 23% on a good report. c c c celgene down g.e. once again the worst performer on the dow continuing its decline, down another 2% at $14.20. >> thank you very much as we close out february stocks are modestly higher in what's been a volatile session. can we expect more volatility to come as we start march let's bring in bob pisani and ron insana ron, february was quite a month.

we hit records, things we haven't seen in some time. started volatile and we are ending that way. what do you see that gives us clues for what's to come in march. >> i'm not sure this is a long-term problem. we started with concerns about higher interest rates, concerns about inflation picking up the s&p moved from 2500 to 2900 in four months for the crazy february at the bottom we saw a 10% correction we were back to october. since that bottom, the stocks that have done well are cyclical the basic growth story, global growth story, earnings at record highs remain intact. investors are acting like that story will continue. >> what do you think, ron? was that just a tradeable bottom temporary but really doesn't change the picture of what we are looking at. >> that's true with respect to the fact there is a yield barrier that seems to be capping the bond and stock market. when we got to 2.9 in february that led to the unwinding of

that's depression trades or however you describe them. we have increased volatility in the longer run i part ways with bob a little bit. yes, the fundamentals are great. they said the economy is strong from their perspective, the ceos and others who were there. that's good except it puts upward pressure on rates down the road with the deficit rising, with foreign buyers potentially boycotting u.s. treasury options the picture might be cloudier than we think. >> that's very interesting we just had bill gross on. he thinks we'll stick with the yield on the ten-year for six months or so what do you think? ron thinks it will be cloudier from here. >> i think the market is eager to push up interest rates and it is telling you that. we can't get anywhere close to 2% on the fed's target inflation levels but the market wants to believe that i would focus on powell's comments tomorrow.

he needs to clarify the idea that the economy is noticeably strengthened since december. that doesn't seem shocking it caused confusion down here. everyone believed we'd get four rate hikes i think we need to hear more if you are worried that the economic news will be stronger than expected, we didn't get that today chicago pmi was weaker than expected pending home sales was weaker. we had a build-up in oil inventories that ruined the rally in the middle of the day if you are looking for the miracles to continue or the monthly numbers don't expect it. >> the yield is down again. >> three ticks off where we were. >> we were talking about four basis point moves being meaningful yesterday here is a move the other way. >> with respect to the pmis in china their market was down a full percent japan down more than 1%. it might be the pmis are peaking but some things happened late in the cycle.

central banks get caught up raising rates domestically and abroad in addition to the mechanical and structural issues in february the longer term picture is one where rates are in question and could be a problem. >> could they go down? >> sure. >> everybody just seems to assume they'll go up the fed is talking rate hikes but doesn't control the bond market what happens to stocks if the ten-year retreats to two and a half. >> we had a minor downgrade. we had a one-tenth percent down. that doesn't mean it's decelerating if it is as strong as suggested maybe it is four rate hikes. or if the economy is weakening and bond yields fall that's also a little bit of a warning sign for a stock market that's currently priced to perfection >> thanks for joining us ron and bob pisani from the new

york stock exchange. the fed chairman's hawkish remarks yesterday raising concern of more rate hikes this year, not fewer. what are the best stocks to rise in a rising rate environment joining us are the portfolio member of the federated kaufman funds and george young of the villaree balance fund. we have had discussions about rates and the fed. let's get down to brass tacks and find out what we buy what do you like >> historically in a rising rate environment and take the last six or seven prolonged higher interest rate environments, the best performing stocks or indesindesk -- indexes. the russell is the best performing index not far from that is the mid cap. in a rising rate environment with cyclicality peaking you need companies that create their own growth you don't have to worry about

gdp. these companies grow regardless. that pick would be number one. ratheon is a large defense prime. if you look at the defense budget now, the world isn't getting safer. the modernization line in the defense budget will be up 16% year over year this fiscal year. that will be a lot of shots on goal for raytheon. you will see prolonged book to bill over one for this company and prolonged earnings growth. they should earn $11 to $12 in 2018 which is a $250 to $350 price on raytheon. they have good cash flow and goods visibility. >> who is financial engines and why are they a good stock? >> i think those are great points i would shade it a little bit differently. recognize that last year the s&p was up 22% the russell 2000 was up only

14%. that leads me to believe what didn't do as well will do well this year. financial engines is a great example. this company was founded by bill sharp, a nobel prize winner. they held ford and kellogg with the 401(k) plans ford and kellogg can't tell employees or suggest where they invest money they know the employees need help being good employers they want to help. for a cost of 1% and ford and kellogg pay for half of that, financial engines helps participants assess what's best for their requirements, their 401(k) the interesting thing is financial engines manages about $150 billion they don't have all of ford and kellogg's assets via the participant but they have the opportunity to help. they only have about 60% of participants now they have room for more. they work with 20 different corporations that you would know worldwide. fantastic company growing at something like 20% pays a 1% dividend also.

definitely under valued. >> do you agree, george, with steven's point that growth might exceed value >>. >> yes i think growth is a way to go. i will emphasize small cap whether it e's growth. i would also say prior to the rate hike we had anticipated these interest rates would be going up the interesting thing about it is it's given short term problems in february with the market there's been more volatility it confirms the strength of the u.s. economy we are domestic players. from our standpoint it is important we see the confirmation if inflation needs to be in check there is a reason for inflation. you have growth in the economy that's what we are seeing. we think mid cap and smaller stocks will make a lot of money for clients. >> xpo holdings. >> absolutely.

xpo is a great secular, long-term play on e-commerce and last mile delivery they are seven times larger than the next competitor on delivering packages above a hundred pounds furniture, appliances. larger items to your home. this is a fragmented market. it's a nice secular growth opportunity. management is fantastic. they have rolled up other industries the ceo brad jacobs was ceo of united rentals trucking is fragmented 85% of truckers have an outfit of one to ten trucks xpo is much larger they have scale. new technology coming. with the eld technology it makes people understand the efficiencies of trucking and increases prices in general. higher costs make higher competition when it comes to smaller truckers

this is a great opportunity for xpo to grow on a double digit rate going forward. >> i love it we are getting real world information for the real world environment. thank you very much. >> we heard from jay powell. also janet yellen and ben bernanke powell back on capitol hill again tomorrow guess what we'll hear from former fed chief alan greenspan yes. it's his birthday. that's not why he's on "squawk box. maybe it is. maybe he's on tyler so they can give him a cake. we'll hear from four current and former fed chiefs in four days. >> fed-a-palooza this is what's coming up on "power lunch." cofounder and ge director says it is due to a colossal failure in board leadership. is he right? tjx out with earnings.

we'll bring you the latest read on retail. g sisse'll take you inside the bibune of smart security that and more coming up. 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.

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>> when we looked at those kids and we saw the grief they were going through, the parents were going through and how the kids organized to really have their voices heard, we talked amongst ourselves and said if these kids can be brave enough to do this we should be brave enough to make a stand ourselves. >> dick's sporting goods has made this move after sandy hook in 2012 they suspended the sales of the weapons only to sell them again through field and stream subsidiaries later. the son of the founder of dick's sporting goods saying, no, they are done selling the guns for good forever he didn't just comment on the retail side. he basically put a call out to congress listen okay well, there was a second part, guys he said, we hope congress will sit down and examine the issue

he made other comments like that today. not many retailers, big retailers left walmart stop selling this type of weapon a few years ago. bass pro shops, gander mountain of camping world but the majority of guns are sold at mom and pop shops and/or gun shows. >> really big stance by an important company in retail. i understand your point that not all retailers are selling them >> i'm sure he'll face backlash. >> sure. it's important to note ed stack isn't a gun hater. he came out in an earlier interview and said, i own a gun. i'm a fan of the second amendment. they'll still sell guns. >> just not this kind of weapon. as you point out there is and our next guest will talk about it when a company puts a stake in the ground there are people who will cheer and people who will say i'm not shopping there

because of what you did. we are seeing it now with respect to delta airlines saying they would discontinue their discount program with the nra. >> right. >> and the georgia legislature or certain people there say, you do that, we believe in the second amendment we'll block a tax break that would have benefitted you. you're going to get reaction one way or another on either side. and then that doesn't even touch on the question of investment or disinvestment in these companies. >> right. >> that's for our audience, our viewers and the people who managed our money, an extremely important angle. >> by the way, kate snow of nbc sat down with ed stack a few minutes ago. you can catch the rest of the interview on nbc nightly news tonight on nbc, one you certainly cannot miss. joining us now jeffrey sonnend field from the yale school of management your reaction first to the move that ed stack and dick's

sporting goods took today. >> it's a courageous moment. i think it is inspiring. we see times where this has happened of course you recall ken frazier of merck when he stood out after the charlottesville murders and unfortunate statements of the president in the aftermath equating the bad guys with the good guys. he took a moral stand. there was a brief pause in corporate america and they rallied. it was ad hoc, not trade groups or a business rally. >> do you recall another time where a corporation has decided to stop selling a product for moral reasons? >> it's funny you mention it it's 1971 is really where we saw the kicking and screaming, the tobacco industry taking ads off the air. one party, i think it was liggett and myers did it voluntarily. the others fought it

it's rare. what we see are a number of places that are acting -- >> cvs stopped selling -- >> tobacco >> they see it as incompatible with their mission as a health and health care company. >> it would be great they can't do it in collusion. it would be an anti-trust decision if they came together to decide to block a product individually they can make the decisions. we have seen 20 companies have severed ties with the nra. it is an inspiring moment. in fact, the nra used to be through much of our lifetime was a pro gun safety organization. it didn't become a lobbying arm for the manufacturers and shows just the last 15 years or so they were in favor of gun regulation firearms, banned tommy guns and the rest business was in favor of the regulati regulation

for that matter business was in favor of regulation for pollution control and talks of whaes that had to do with problems we had in the early '70s the foreign corrupt practices act. the business was behind it business would rally this is a watershed moment. >> before we move to the next topic to discuss here, is this the time where business is the one that begins to move the needle on a political issue, even if it is a dangerous thing potentially to do for the business you are running. >> i see people equivocating over that and it doesn't make sense. even dick's sporting goods sells a lot more acrosse, swimming gear, football stuff, soccer scuff th stuff than guns. smith & wesson isn't even a billion dollars. the boycott being on the wrong side is much more significant than promoting this. i think fed ex is on the wrong

side u.p.s. is on the right side. u.p.s. isn't pointing fingers. weirdly, fed ex is state of georgia very bizarre. >> you're using words like right and wrong side, inspiring and so forth. is that because that's your political point of view or because you are describing the wrong side of the public's point of view? >> public point of view. >> because more people favor the idea of restrictions on assault weapons and favor background checks and so forth. >> you have articulated that well i'm glad you made the distinction. 67% of gun owners want more regulation roughly 70% of the nation want assault weapons banned in terms of enhanced background checks, it's 97% the nra is fighting that being on the right side of the american public, 97% -- >> the right side of the consumer optics. >> are we getting to a point --

maybe it's just the beginning. maybe we have it in the media a little bit we are going to move on. this is an important topic where you shop and eat is going to be representative of what you believe in in other words, if i go to this coffee shop i must be on this side of this issue if i go to that one -- and we are going to be a country where nobody talks to anybody on the other side. >> you vote with your dollars. we saw companies from apple to at&t, starbucks to whomever on these religious freedom acts breeding intolerance and divisiveness the cross section of american industry came together in the states that were imposing those saying that's not the country we want to live in, that's not our customers. it's unifying. >> pulling the all-star game out of north carolina on a politically sensitive issue. i would like to talk more about this i would like to talk more about disinvestment or investment. it poses thorny questions for

asset managers and index fund managers who are, by definition, almost required to own companies that maybe some of the shareholders or management wouldn't like. let's pivot to general electric. a company right in the backyard of where you teach for years now up in boston ken langone, very influential business person, cofounder behind home depot said it was a failure of board leadership to see what's happening at g.e. now. >> ken langone is a personal friend of mine he's a really smart guy and a lot richer than i will ever be i would defer to his judgment as to what was going on while he was there. something ken langone should remember and i don't know if he knew him was jack welsh's predecessor reginald jones told me when they bought utah international which was the largest purchase in ge's history

at the time under jones. the press was chasing welch into the men's room for comments. he said i won't comment on a predecessor. the company is moving forward. buying utah international was the right thing to do. the retro speculation isn't helpful. some big mistakes were made. also should be pointed out people waving the white flag of heroism when having seen this are restating history. in particular, nelson pelts bought $2.5 billion in stock of other people's money in ge at $25, $26 a share it's $14. >> they are under water now. >> when he bought it he said we should not break anything up this is the right vision this is a $44 stock. >> he has a director on the board now. we were talking about utx an hour or so ago i think you asked the question

about deconglometerization is that era coming to an end >> it was a huge problem none of those would last the test of time the old itt. >> is it coming to an end because they don't work or because investment bankers see money in breaking them up? 25 years from now, you can bet your -- pardon me -- you know what that the same investors would be there saying, you'll be much better if you put the elevators back together with the air conditioners. >> your saying it is the gluteus minimus versus the glute us maximus. >> the thought that managers making decisions would be better than the internal financial market would be better than the extern external we don't need g.e. or itt but

g.e. proved the rule somehow they made it work but we never understood what was happening in g.e. capital. >> at the time i heard somebody say this i can't remember who it was a hedge fund that made lightbulbs. >> it was. gte as well. >> gulf & western, all the big ones you remember. >> it's because -- we are going to continue the conversation right now we have to go. >> great board at g.e., by the way, the new board >> we gotta go courtney, take us out of here. >> thank you very much a big miss in pending home sales. the real estate market is finally cooling off. tonight on "mad money" don't forget under armour ceo kevin plank. comebacks, earnings, his future and more tonight at 6:00 eastern. firms... again.rokerage

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hello, everyone. here is your cnbc news update this hour. in a statement, attorney general jeff sessions said he'll do his job with, quote, integrity and honor, end quote this after defending himself from president trump who called

it disgraceful that sessions had asked an internal watch dog to investigate gop claims of inappropriate behavior by fbi agents police officers responding to reports of shots fired inside a georgia high school. a teacher taken into custody would not let students into his classroom. police say a shot was heard after the school principal tried to open the door of the classroom. no children were ever in danger and a school was evacuated an ohio school district is defending its plan to continue an annual gun raffle which included the ar-15 to raise money for the athletic department the boosters' president explaining why. >> number one, a lot of tickets have been sold already prior to parkland those weapons we chose for the listing are enticing to people to purchase the tickets. we want it to be enticing to the buying public so the list of guns is what it is >> you are up to date. that's the news update this hour, brian.

back to you. >> thank you very much we have breaking news now on spotify. leslie picker has more. >> the spotify f-1 has been filed for the direct listing as we have been reporting for weeks now spotify was expected to do a direct listing which is different than an initial public offering essentially they'll just list shares and start trading as opposed to doing a marketed process where they have bankers and meet with investors and so forth. this is step one f-1. it's interesting to draw the distinctions between this and a normal f1 or s1 if it is a u.s. filer. they said they were listing on the nyse for shares to be traded under the symbol s.p.o.t. they didn't say how many shares would be resold. they are registering to resell shares according to the filing of course there are no underwriters on the front page as you would normally see with a

traditional ipo. we are still digging through the numbers. we'll circle back with what we learn. this is the latest on the spotify direct listing >> thank you very much shares of pandora are spiking here about 1%. you can see it clearly on the chart. thank you very much. pending home sales hitting nearly a four-year low falling nearly 5% in january diana olek joins us now with the story. >> it was a big miss the street was looking for a gain but higher prices and mortgage rates are taking a toll pending home sales which measure signed contracts -- so people out shopping in january and making deals -- down 4.7% compared to december, down 3.8% from last january. no coincidence the start of the year was when mortgage rates jumped higher and consequently sales of newly built homes also fell in january. the 30-year fixed mortgage was half a percentage point higher than january 1 and still

gaining. realtors are reporting strong buyer traffic but fewer buyers are able to find what they can afford a demand index showed the number of buyers jumped dramatically but the number of people writing offers declined sizably as well. the critical shortage of homes for sales pushes prices higher and supply isn't better. down nearly 10% annually to the lowest level on record more listings will come on in the spring but won't be close to enough back to you. >> thank you very much it's been a wild ride in courtney's world of retail with big beats from big companies misses and whiffs as well. what's the real state of retail? we'll talk with the ceo of a company that distributes products to more than 9800,0 retailers so they'll know. "power lunch" returns after this obvious.

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welcome back tjx rallying after announcing buy backs. this morning shares up almost 9% our next guest whose company does business with tjx says shopping there has been popular for some time. joining us is brett rose from

the national consumer suppliers. for folks who don't understand what you do let's start there if you could explain your role so we understand how you are interfacing between the suppliers of goods and retailers. >> absolutely. our kmacompany handles distribun direct to the off price retailers. marshalls, tjs and ross's of the world. >> this holiday season was better than expected for many. department stores, macy's had a good report. it was interesting what they said about january january comps were you were 3% they sold a lot of clearance inventory and/or bought less what does it mean for t.j. maxx or your business do you not have the inventory to get to the typical overstock stores >> a lot of the products when you walk into them are manufactured overstocks. manufacturers are keen that

there is a major section of retail these days. a lot of goods are made with that consumer in mind. >> if you are going to the outlets and this shocks people, but a lot of that inventory, merchandise was made specifically for the outoutlet it's not necessarily overstock left over from a retailer. >> it's a hybrid of both sometimes you find overstock manufacturers run lean these days because inventory is money. cash is king but a lot of the products are manufactured specifically for those retailers. indicative of t.j.'s numbers today and other retailers it's working. the formula is a success for the manufacturer and the retailer. >> so that brings up a great point. going forward we have a fractured retail environment the barriers to entry are low with the internet. but there is still value in the treasure hunt with t.j. maxx, marshall's, ross stars, home goods. what's your look at everybody else, the department stores or

amazons of the world because you are a key go-between >> off price is the retail revolution macy's announced yesterday they are doubling down their concept backstage. the traditional department store is going to morph into the t.j.'s models. the street is watching and t.j.'s prices are up consumer happiness is up you have retailers like kohl's, macy's, amazon watching them closely. it's hard to replicate that on line which is a hope for traditional brick and mortar. >> if they are moving to t.j.'s, the on line presence is just a branding, marketing page you're really not buying on line if that's what you think folks are moving to is billions spent in e-commerce a waste? >> it's both t.j.'s is a landing page but brings people to stores. that's where walmart has a competitive advantage over amazon despite last week's reportings they have 11,000 plus stores you have the hybrid of people

that want to shop on line but still want to walk in, want the experience as i said on the show in november it's chic to be cheap it's better for the consumer because the savings is there. >> and private labels are something they are interested in walmart announced several more brand new names in apparel and bedding as well. thank you, brett rose. >> my pleasure >> speaking of retail, the battle for your front door heating up as amazon jumps in with a purchase of doorbell maker ring why are they getting into this business we'll get an inside look atht e booming industry and why they chose to partner with walmart. stick around you always pay

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kate rogers with a news alert. >> this is on the s.e.c. announcing a settlement with ameriprise financial they say they were over charging certain retirement account customers for mutual fund shares they paid a total of $1.7 million in unnecessary fees and charges. the penalty is $230,000 without admitting or denying the findings of the s.e.c. back to you.

>> thank you very much amazon's billion dollar buy of ring, the doorbell company gives them a hold in the smart home market another player in the space is latch, the maker of keyless entry systems for urban residenresiden residents who may not have building staff to accept packages jet is a partner latch's cofounder luke sho shonefelder is here for a "power lunch" exclusive welcome. let me understand how the product works. i get the concept. if i live in an apartment building and i want something delivered it might be -- and there is no doorman there, what do i do? do i send a code to the deliverer's phone and they put it against a pad or what how does it work and would i use one, too, to get into the building and the apartment >> great question. we built an interesting system that works for all of the stake

holders. our hardware has a touchscreen and a reader to work with cards and also a bluetooth to use phones which allows us to support lots of different delivery carriers. we work with major national carriers and individual logistics providers to get into the building in the easiest way for them with amazon, you are able to -- there is a delivery instructions field. put one of the codes in the delivery instructions field and make sure you get your amazon packages into your lobby with major national carriers we credential drivers directly. >> u.p.s., fed ex. >> yes >> the carriers, you are talking about transporters, not phone carriers. >> exactly we have taken the approach of working with the carriers so whatever you do on line your deliveries are able to get inside your building. >> you said it works on all the stake holders including me, the resident i show up at my home and it's

late i have been out to dinner and my phone is -- >> dead. >> what do i do? >> you have two options. if your battery is dead you can use your card which you can keep in the wallet. if you have lost your wallet you can use your personal code on our touchscreen. you have to have lost your phone, lost your card and forgotten your code to be locked out. >> that sounds like a great night. >>that could actually happen. >> sounds like a great night. >> we try to get people in that's the goal. >> you lost your card, your phone and can't remember the number i have been there. >> yeah. >> you have? >> this is going in a different direction. >> when you heard yesterday that amazon will pay a billion dollars for ring, what happened to you then? >> it was a busy afternoon before and after the announcement it's an exciting time. we are seeing the value of the hardware/software eco-systems.

the biggest players in the industry having a long-term relationship with a customer with a device inside their space or a part of their space is extremely valuable because of all the things, the new experiences you can enable deliveries are part of it. monitoring is part of that it's really an exciting time for the space. >> potentially a lucrative one. >> yes. >> obviously based on that let me ask you a question. that is this are you equipped -- you're going to be -- you might be in hotels. you may be in large apartment buildings with hundreds of residences. >> thousands. >> maybe multiple thousands of individuals. >> yes >> the system isn't working. are you equipped so that i can reach somebody on the telephone and get help >> yeah, absolutely. for us, we sell to the building owners so the building owners have on-site staff to help and we have 24-hour support as well to

help that's really important because of the density of users we target our buildings are all hundreds of units, hundreds of users. that's really important that you have the support. >> you partner with a company like jet we mentioned that when we were introducing the segment. has jet talked to you about buying the company or did amazon look at you? >> no comment on those things. there is a valuable space for a lot of different companies in the e-commerce world, carrier world, technology world. >> and home security i understand it could be worth something like $50 billion in the next several years. >> like our deal with jet it's interesting to see how they value it they are actually paying to install our systems at 1,000 apartment buildings in new york city so the residents can get smart deliveries inside their lobby. the belief is if you are able to order on line and have your deliveries arrive it will shift your buying behavior. >> how old is your company >> started in 2013. >> five years old.

>> yep. >> who came up with the technology you, a partner >> i have myself and two cofounders brian jones is our cto >> thank you very much continued good luck to you >> thank you >> appreciate tear, the xlk, an, tracking tech up 6% in three weeks. we'll tell you what ads e trerar tracking in tech straight ahead tracking in tech straight ahead on "power lunch. o: when that hurricane hit, tracking in tech straight ahead on "power lunch. the entire community came together as a whole. ♪ it was such an overwhelming response to help others. no one thought that they were going to do this before it happened and everyone just did it. i think that's the way that human nature should be looked at. ♪ i'll stand by you. ♪ i'll stand by you.

♪ won't let nobody hurt you. ♪ i'll stand by you. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

it is time for "trading nation" looking at tech, the s&p sector in green this month the question is, does the market leadership continue? matt, what do you think? will tech, like, amazon, apple, and a couple others, lead this market higher like they have been >> well, there's a lot of reasons they can i mean, first of all, you know, the xlk, check etf obviously positive recooping all losses from the crash. we look at what happens during the crash. the volume of the xlk is much higher than it was in other groups versus the sls over 120% increase it's more washed out

the source of cash that's enabling the rally more that's positive. we need to be careful because here tech on the highs, could form a double pop, but the stuff right now is good. one of the stocks we really like here is micron first of all, the stock is very, very cheap, trading seven times earnings, and five times forwards earnings, and our research partners at securities, they point out that the supply chain is constrained, so, therefore, prices should move higher than the consensus which is already high. look at the stock's chart, it was forming a negative descending try angle formation, but negated that issue, and now testing the november high. if it breaks higher from here, it'll break out above the $60 level, and that's very positive for a stock that's very cheap. >> okay, very interesting there. micron technologies. okay, what do you think here same situation in same positive

view on tech >> we like tech, but we don't believe the tech leadership is going to continue, so as the year progresses, you'd expect industrials and financials to take over leadership, but there's a lot of names in tech that we love, and my favorite happens to be netflix, and i mean, the guys are setting a new record high every single day, so netflix is an absolute game changer when it comes to the way we're all consuming content. they could raise prices 100% and nobody bats an eye the subscribers are growing ridiculously, brought on 8 million new additions, crushing 6.3 million projections. the reason for the growth is they have such unbelievably strong content original content is unbelievable their goal is to make 50% of the content original over the course of five years. beyond that, these guys are absolutely killing it internationally with overseas revenues up 63% year over year,

new accounting for 60% of the total revenues this is a strong buy in my book. >> wow thank you very much. mark, matt, appreciate it. for more, go to tradi tradingnation.cnbc.com, and "check please" is next now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> when you own a stock that's going higher, help lock in profits with the stockholder, as the stock moves higher, risk-reward ratio may fall out of balance so raise the exit point to under significant ppsuort level allowing you to ride the trend as long as possible

well, we talked about a lot of interesting topics today like bill gross's stamp collection, latched the automatic doorbell system, but the story that's going to get most people talking tonight in the world of business is this sporting goods decision not to sell semiautomatic rifles, the types of said to be used in so many shootings. it is a tricky, tricky things for businesses to plant a stake in the ground on an issue and to decide whether to sell or not semia product based on a moral stance you're going to alienate somebody one way or another no matter what you do >> that's true mostly, in my world, i look at

retail closely and letting customers use their reference of choice in the gender debate, and that caused discourse. some say it impacted >> we're at the beginning of it. >> i think that is true. thank you for watching, everybody. >> "closing bell" starts right now. >> hi, everybody, this is the "closing bell" live from the new york stock exchange. i'm kelly evans. i'm wilfred frost in for bill griffeth the first february loss for the dow since 2009 >> energy with the worst month since 2015, but tech is strong breaking out the standouts and where to invest. first, bob is on the floor for more on the market moves, it's picking up