the u.s. and they can promote with belton road which is good for commodities. >> we'll leave it there. thank you. again, we can throw up shares of goldman sachs on this report from the wall street journal that lloyd blankfein will leave at the end of the year and goldman sachs is saying it is an over all strong day for stocks "power lunch" has that story right now. i'm melissa lee. here is what is on the menu. a perfect job report for the bulls. strong gains across the economy and no wage inflation fears. does that mean all is clear for this bull market blank fine's exit reports the goldman sachs ceo is preparing to leave by the end of the year. who could take over? could gary cohn make a return? where does the stock go from here and wynn putting money on the table to make this lawsuit go away what is ahead and an exclusive with the wynn new ceo moments away "power lunch" starts right now

and good afternoon, everybody. welcome to "power lunch. i'm tyler mathisen a strong rally on that strong jobs report that melissa just mentioned. we're around session highs the dow up about 343 more than 300 points the nasdaq hitting a fresh all-time high. we haven't seen that in six weeks. and facebook having the most impact on the nasdaq 100 microsoft and apple and intel also fuelling gains there as you see right there. look at intel. up nearly 3% bitcoin going the other way. falling below 9,000. now down about 20% this week and check out some big movers. melissa lie height -- highlighted wynn and goldman wynn up almost 5% and the biggest gainer in s&p 500 and goldman now around session highs. it is a month since the dow hit an intra day low of 23,360

a big rebound since then as you see on the graphic helped by the jobs report and bob pisani is following the reaction from his perch at the nyse. >> at tuesday there were a lot of things that could have gonna -- gone awfully wrong and it turns out the bulls were right. a lot of things went right let's take a look at the score card and see what happened number one. >> inflation and wage growth, improving, not out of the wood you but a better report than last month tariffs still a negative but it could be flip-flopping because we have canada and mexico out so that is not a wild card but not a negative the north korean talks, the biggest political overhang and anybody always mentioned north korea and that is a positive for the market global growth not dropping that is a positive and the

earnings levels, well if they start drof -- dropping for the tariffs, but that won't happen a lot of things went right this week and that is why we're sitting at the highs for the week up almost #% the sectors are cyclical back again. to the industry and energy and banks and materials moving up as well utilities back down in the basement where they've been for a long time. the marks aren't too freaked out about the concerns on wage growth, looking at home builders and companies associated with construction, they are positive and moving to the upside so no concerns about rates at least for the moment here. big industrial names, we've been proxies all week for the tariff fight and what goes on and generally all notably to the upside and there is the industrial select sector up 1.7% the only losers, and here is irony. steel stocks, which had a big, big runup during the week on the steel tariff, they are giving

back much of the gains this week. >> we're at highs for the day, up 350 points. >> back to you. >> let's take a deeper divin side of the jobs report because while the headline number might seem goldilocks there are less numbers -- >> we were trying to figure out the metaphor. >> i like goldilocks, hot and cool in the right places. >> a piece of pizza that is just hot in the right place. >> but the tomato sauce burns you. >> this is a gang buster report on top line but look below and we're not seeing the inflation in side of it. that is what pis anie was talking about. levels past the estimate of 313,000 after a strong 200,000 plus in the prior month and december and jn were revised up 54,000 average hourly wages up a paltry

0.1% and unemployment at 4.1% and participation rate ticking up and they say this report on balance further steal the resolve of the fed officials to hike rates again let's see where those jobs were. construction and that could be weatherly. up 61,000. good weather might have helped and retail perplexes me. an industry thought they were losing people, up 50,000 and manufacturing and education and health services all up but a big number of 23,000 we talked with early evans chicago fed president and still wants to see stronger wage growth. >> my preference would be to wait longer and let the march inflation rate from a year ago fall out of that we could go midyear and then all of a sudden see inflation continues to move up toward 2% i'm much more confident and we continue a gradual upward

adjustment of the funds. >> let me give you a translation. charlie is a bit of a dove on the committee. he wants to wait in march while the committee seems to be ready to raise rates the important point is after this report, he can still hold his ground with that dovish idea and the bottom line is i think this keeps the fed on pace with the gradual rate hikes and doing three this year. as long as we don't get the precipitous decline in unemployment. >> stick around. for more on the job numbers and the impact on your markets, bring in kevin mon, an asset management president and cio and aman at our desk here. kevin nicholson, river front investment group, chief market strategist and lindsay pegsaw. and ladies first, do you find the same nits to pick that steve found or how do you observe this report >> i think there is no denying that the top line number was certainly impressive and a step in the right direction, helping

to boost the longer term trend in terms of monthly employment but from the fed and market perspective, the key component was wage growth and we see a very disappointing pace. we saw a pop at the start of the year which if you remember was a similar trend that we saw in the previous two years wages jumped up in january and then gave back the momentum and we are on a similar track this time around. >> how much did we give back if it fell from 2.8% to 2.6. >> 2.6% is only moderately above the 2.1% trend since the end of the financial crisis if we are talking about 1% we would talk about 3% to 3.5% raises and then the fed would say inflation is a concern and wage growth is a concern and we need to accelerate the page of wage increases but at 2% there

is no justification for the fed to continue even in a grd you'll raise in rates at this point. >> and the jobs picture looks awfully strong is there anything in this report or anything over the past couple of weeks that would change your investing course. >> i really think this jobs report was the perfect slice of pizza if you will -- >> nice. >> you're very welcome >> a little sausage on it. what do you think. >> it did reaffirm the underlying strength of this economy and also diminished inflationy concerns an the potential there could be more than three rate hikes this year. so for a portfolio manager, i look at fundms and growing earns and that stand to benefit from the tax cuts like financials like consumer directionary and focused on e-commerce and biotech. >> and can i give you a math as to how the fed looks at numbers. and lindsay, correct me if i'm wrong.

take our your pencils. here is noninflationary wage gains and half a point of productive and the inflation, at that rate 2.5%, the fed would see that and if inflation expectations are unchanged as noninflationary wage growth. 3% wage growth would not be inflationary so the fed is really going to be concerned -- it should be concerned when it gets to 4 or 5. and i'm trying to plow this theme which is an amazing theme, the market is more concerned about wage-driven inflation at this point in the cycle than the fed is which is the opposite ishl. >> because even the economic view is the 3% or 4% number, the marks are worried about the swing rate hike, the fourth hike. >> right and if i could add to that it is not just the fourth one, it is the trajectory. >> exactly. >> because a quarter point will not freak people out

but an extra quarter over time and a higher turnover rate so the market was way too edgy about the last january rate hike and it is proven to be wrong about that. >> kevin, it is edgy because valuations are pretty near -- what some might call perfect at this point, aren't they? kevin? >> kevin nicholson. >> yes >> sorry. >> sorry about that. i wasn't sure which kevin you were speaking to yeah, i think when you look at the markets right now, we see it is well -- fully valued looks here in the u.s. but we still think that international markets still has some upside. so i think that from the market stand point, we're going to go back up and probably test the high we saw on january 26th on the s&p which was -- that 2872 range because over the past couple of weeks, we've been stuck in the 50 to 100 day range, the moving arverage and i thought the only way to get out

of it was to have earnings be the next round of earnings be the catalyst to get us out of it but it seems like this jobs report took a lot of people by storm and took some of the edge off to worrying about inflation. >> kevin -- >> i think that -- >> go ahead. finish your thought. >> so i think that we're going to -- we're go toing -- going back up to test the highs. >> we're talking about interest rate and job numbers and basic economic fundamentals but i wonder whether or to what degree today's gain of 360 points in the dow can be tied back to two things one, is that potentially, possibly and maybe just maybe the tensions are ratcheting down geopolitically with respect to north korea. and that is number one and number two, that the heightened fears of a trade war have ratcheted back as it is now

clear that there are going to be major exceptions for two of the biggest importers of foreign steel and there may be more. >> and we make get some resolution on nafta as well. i think that's all part of the recipe, tyler and i think it would behoove all of us and investors to now separate this 9-year-old secular bull market from the new bull market that is now just started with using tax cuts as a tail wind. this bull market will be driven by fundamentals in earnings and the second part was central bank driven and if you think in that context, you'll see investment opportunities. >> and growth by the way and fourth quarter number set to a disappointment around 2.5 and people said it is not 3. it is ratcheting up toward three. >> today is 2.8 and if you didn't hit your number, wait a little bit and the revisions will get your number the two kevins and a steve >> and lindsay. >> and lindsy. we didn't get back to you. thank you.

>> thank you. now to the big breaking news happening a short time ago according to a report, lloyd blankfein is preparing to leave goldman sachs. it could happen as early as this year wilber frost joins us with the latest. >> the first thing i would say is there is nothing immediately new in this article for two crucial reasons. it could be as soon as this year rather than stating it will be and it more importantly it is up to lord blank fine as opposed to be under pressure so i wouldn't take the headline of the "wall street journal" article as fact. that said, compare him to his fellow decade plus tenured ceo in jamie dimon there is pressure because blank fein's and co-coo want to become ceo in the way that the two under jamie dimon did not and he is at risk if he goes for too much longer of losing more people like gary cohn losing and he has to make a decision between one year more or commit

to five or six years more to bring on the next level of talent and now is he under pressure when it comes to company performance? no this is still up to him when he decides to go. if we look at share price performance since he took over, it is clear that while behind that of j.p. morgan, it is significantly better than some of the other banks goldman sachs up 79% since june 1st, 2006. yes there has been some mistakes perhaps over the last year or two. but that performance of lloyd blankfein since he took over means he is in control. >> how old is he >> 63. and when we consider david solomon and harvey swartzs, they are 55 and harvey swartzs is 53. as you look at the 55-year-old, if you want to give the next ceo a good five-year plus tenure to be able to get in there, that is a consideration that has to come into his mind. not so much of whether he is thinking i haven't gotten enough left in the tank or i'm bored of this job, it is a question of the key candidates below them

and will they stick around and leave and gary cohn is a good example. >> he wanted the job. >> he wanted the job and my reporting as i said in january was when he got offered the job in the white house, had he been told he would have been ceo, he would have been tempted to stay. he wasn't given that inclination and he decided to go. >> is this not a coincidence that this happened the week that gary cohn resigns. >> i don't know when they decided to go with press to this and if you read the headline that he could decide to go, there is nothing hugely new. so maybe they decided around the background but also if you talked to people at the firm over the last couple of hours, what is their take they were surprised by the headline if it was this year. people were thinking pain next year, the 150 year anniversary of the founding of the firm and they might want to make a pomp and ceremony about that and we are looking at sooner of the one to three year span than perhaps

a year or two ago. >> stay with us. we want to bring in andrew ross sorkin and shirley lane. and andrew, i'll start off with you. what are you hearing from your sources. >> i would concur with what wolf just reported there. i think the context is important. if you read through the story and look at nuance the way the reporters approached trk tit, t headline is different than the content of the story, it could happen at the end of the year or 2019 or it could change. i'm not sure whether that constitutes news internally within goldman sachs they are thinking about this for quite shiem and-- sometime and think there is no time looip and the board is thinking of doing this at the end of 201 and you should prepare for it and nor has the board said they are thinking about the end of 2018 and having said that, there is a sort of cultural betting line

internally that lloyd would step down as wolf said maybe in 2019. to coincide with the 150th anniversary. maybe sooner maybe later. and by the way, lots of jockeying along the two that want this job to make it clear they want this job and by the way, that if the opportunity is not available to them sooner or later, who knows what will happen it is g -- the general agitate is the longer he stays it will be hard keep everybody and that is weighing on the conversation internally, so a jump ball >> has goldman said anything today in the response to the store storey. >> not on the record. >> andy, any comment coming your way. >> nothing on the record >> nothing on the record so -- >> nothing on the record. >> so who decides -- i'll bing -- bring in bethany and who decides who gets this job when

blank fein leaves, is that the board or lloyd or the board acting on the recommendation how will it work >> might i -- >> bethany, go ahead. >> from what i understand the boyd and lloyd are the same thing. and i what going to ken occur -- concur is this is lloyd's discretion of consolidating power at goldman that there couldn't be a challenge to him by expanding the size of the management committee and not a coup that brought others down like in the day and it is lloyd's board. so i think if they were to make a decision it would be lloyd's choice and the board's choice. but i don't think there would be much distance between the two. >> where does blankfein fit in the pantheon of both goldman chairman and it is not been a

public company for all that long, of goldman a chairman and of executives on wall street today. wolf >> on the question of executives on wall street today, you have to carve out jamie dimon and lloyd blankfein for one particular factor. they survived through the financial crisis they came through the other side goldman, you didn't see the immediate after math with record profits in '09 and '10 and so in that sense they do stand to part and -- stand apart and moynahan has pe formed and morgan and some more more recent and they stand out for that reason and the share price for the five big banks with investment banking also stand out. >> this could be an opportunity for goldman sachs to recast the business in the choice of its new ceo, perhaps a ceo that leans away from what goldman sachs has been strong in which had been not performing in

recent years not trading, maybe -- a technology would be an interesting choice as a ceo to move the firm in a different direction. are you hearing any indication that perhaps this is what they could do or is it going to simply be the people who led these business units that exist within goldman sachs today >> look, my understanding based on conversations that i've had is this is a race between swartz and solomon. it is not a race that marty, who is the technology at that firm is a part of that is not to say he won't play an instrumental role in the future of the company or the bank but that it is -- it is a harvey-david race. so harvey has a trading rep background and david has a advisory banking reference background i'm not sure that either of these men are going to pivot the overall strategy of the firm to a completely different place

than lloyd has taken it. obviously they've made their -- taken their own pivot in the past couple of years in terms of trying to command t-- to expand and i don't think they'll turn away but i don't think you'll be looking at a very different goldman sachs, the function of either of these two people any time soon. >> i agree with that with andrew if we are talking five years away for blankfein but if this is in the next two years they are the two candidates when you decide, who else gets promoted and whether of those -- whoever misses out decides to leave. and we have a graphic of some of the wild cards of the people below. and i think who gets promoted depends on who gets the nod of ceo. marty chavez is a name we would discuss earlier and now cfo. when he became cfo for head of

technology, that is a sort of promotion with more broad exposure, but in the short-term, none of the people you are looking at on the screen are immediate contenders only swartz or solomon but they are vying for the next co-president. >> and sometimes the second tier guys that we're looking at there, they might step aside because they say, well i want the ceo to have his own choice in some of those roles and so you deserve to have your own cfo, or me or somebody else. bethany, let me ask you about bla bla blankfein's legacy and we've met him here and he is a delightful and self deprecating and funny guy. sometimes hisir reverence may cause him to get into hot water when he said they are doing god's work and thought it was a throw-away line but didn't perceive it that much. >> and agree with that assessment and that meant to be a throw-away line and in every

joke there is an element of truth and i think that might be an element of truth in this too. i think his legacy is mixed. look, he brought goldman sachs through the financial crisis in a way that was incredible smart. they saw it coming and shorted the sub prime market by selling securities to their own customers. whether history will judge that as wise i don't know and these are intangibles. but how much of the widespread testation of the banks in the wake of the financial crisis was caused by actions ofgold man paying out bonuses after being bailed out by the government i think his acs were very smart but not not wise for the long-term and that put goldman sachs's business under pressure to -- as an impossible measure and quantify way but i think that -- like the banks have cost them something and whoever is stepping into the

role will have a -- an interesting time ahead of them because we talk about goldman haves transformed into a technology company or what they are doing with markets and consumer lending but to remember, goldman used to be the -- hot in the trading business they sat at the center of this immense glow of information and that gave them a huge advance in the markets. it was a contributor to the goldman sachs profits in the run up to the crisis and they don't have -- they are mart people but there are a lot of [ inaudible ]. >> and i think that is a real challenge going forward. >> thanks to all bethany and andrew ross sorkin and wilbur ross. we're awaiting martin shkreli digs at the courthouse we'll take you to it rchase. let's do this. got it. book the flights! hai! si! si!

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what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more. welcome back a big rally. dow jones industrial average with a gain of 1.5% and the nasdaq higher by 1.4% and the s&p up and intel, chevron and caterpillar are the dow leaders. gains of more t gains -- more than that 2% that is pushing things higher. >> and we are in brooklyn awaiting the sentencing of

martin shkreli meg? >> reporter: well we are waiting for the judge to deliver her sentence right now she's going through what the guidelines say he could get. recall the government has asked for a sentence of no shorter than 15 years and his defense team is asked for 12 to 18 months now as we were awaiting for the judge, he did address her, it is the first time he's spoken during this whole process. he broke down in tears, while he addressed the judge saying he made mistakes, nobody put him in this position except himself and he asked her for the chance to do it again when he said that woe do it right. his voice breaking many times. judge giving him a box of tissues as he delivered that plea to her. now she's going through what the guidelines say he could be sentenced and is running through letters of support and letters from family members so we are waiting for her to issue the sentence any minute now at the brooklyn courthouse. >> meg, has he ever compressed emotion before like this i always recall him smirking.

>> reporter: yeah. i've never seen him so emotional. he certainly had a very grave tone of voice as he started speaking and his voice was breaking and he did appear to broke down in tears. it is a very different martin shkreli than we've often seen before everybody knows that meme circulating when he testified in front of the congress when he refused to answer questions, later called them imbeciles and that is what he is famous for. he really put on a different face here in the courthouse today. his attorney ben brothman trying to make the point that if he is sentenced to 15 years, he called that a life sentence he is 34 years old brockman trying to say that he is important to the biotech and medical community because he'll be working on treatments for rare childhood diseases. the government said martin shkreli is not a child he's a 34-year-old man he's about to be 35. and he needs to take responsibility for his -- his actions so we're waiting to hear. >> and he was an investor in biotech and not personally

working on any sort of cures i'm curious because this sketch of the judge can't read how she's accepting shkreli's plea at this point. so what was your sense, because throughout the trial he doesn't seem to express -- didn't express any sort of regret for his behavior >> the judge -- she appears to be a very empathetic she is handing him a box of tissues and tried to make clear as the attorney asked for, she is not sentencing him for other than the crimes that he was convicted of his attorney said don't sentence him for being martin shkreli and for raising a drug and antics online she's sentencing him on his crimes. >> to melissa's point and also to michelle's point, i think the lack of remorse was something that the prosecution raised in

their letter to the judge asking for whatever sentence they requested. was that he had not expressed remorse. so it is very interesting on this occasion that -- at the 11th hour and 59th minute he does express remorse but let's be clear here. his crimes did not have to do with the raising of the prices of drugs, something for which he was widely criticized. it had to do with other activities while he was a money -- a hedge fund manager, right, meg >> reporter: that is absolutely right. he was convicted of two counts of securities fraud and one of conspiracy to commit securities fraud. the first two had to do with former hedge funds and convicted of lying to investors, misleading them in order to raise money. the final count was about illegally controlling or attempting to control the share price of his former bio technology company retrophin and so there is some argument over whether he was working on actually developing medicine

this is an argument that is going on in the biotech community now because he was at reto fin and he founded that company and founded the company during -- where he gained his infamy by raising the price of the drug. >> and we are awaiting it and you'll be on top of it don't move, it is cold out there. big rally on wall street the dow around session highs an a gain of nearly 400 points. up 376 good jobs report the major driver today but are some people actually feeling less fearful also about a nuclear war? is that part of the reason we're seeing gains will kim jong-un be willing to give up his nukes? xtrth korea expert joins us ne not doing work to help somebody, you're gaining something from meeting mr. adderley. it's a calling to not only everybody in this neighborhood in miami, but to the nation how great we are. and how great we can be. ♪ ♪ i'll stand by you. ♪ i'll stand by you.

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14 injured after a gathering in kabul. the islamic state claiming responsibility. secretary of state rex tillerson arriving in kenya for a three-day visit to continue his african tour as the president and opposition leader met for talks months after a disputed presidential election caused turmoil in that country and here at home, former trump campaign aide sam nunberg arriving at u.s. district court in washington to testify before a grand jury, this week he made headlines after saying he would defy robert mueller's subpoena and then changed his mind. that is it back to you guys. >> thank you. so in a surprise move, president trump accepting an invitation to meet with north korean leader kim jong-un. according to a senior administration official, the invitation was conveyed verbally to the president by south korean national security adviser chung

eui-yong and he said that kim is committed to denuclearization and pledged to refrain from any further nuclear or missile tests while talks are underway and he said they would meet by may. however the white house has yet to set a time or place for the meeting. when it does happen, it would be the first face-to-face encounter between any leaders of the two countries ever let's bring in sung yeun lee, good to have you here. >> thank you. >> is this meeting a good idea >> it is very, very good idea for kim how to explain that out reach first to south korea and then the united states. did kim jong-un really wake up on new year's day have a moment of epiphany and decide going forward he would be a nice guy no, this is all pre-planned and or daned and kim is now calling the tunes. why? because he has a better position

than any other time in north korea history to play washington and seoul, north korea today stands on the verge of a complete nuclear breakout and north korea showed last year it has the missile range to hit every corner of continental united states and now north korea has unleashed a new weapon, a very soft image exuding bunker-busting bias busting royal sister who just by smiling at the crowd in south korea last month was able to melt hearts and minds. don't be surprised if the first sister makes a trans-pacific journey to washington as a north korean envoy did in 2000 and soften trump up and persuade him to come to pyongyang in may. >> what should the president say to kim jong-un >> the meeting won't take police unless president trump gives away real concessions,

relaxation of sanctions, no more further sanctions and substantive stuff of that nature what should he say when he goes to pyongyang or meeting with the north korean leader, if he looks at him straight in the eye and tells him, mr. kim, tear down the walls of your horrific gulag or repolice your political prisoners and dismantle program and stop counterfeiting our currency and engaging in elicit proliferation and damaging your people then even if kim doesn't do any of that, that moment will be remembered as a powerful symbolic moment in the quarter century of unremitting failure that is u.s. diplomacy vis-a-vis north korea. but the reality is probably donald trump will want to believe that his inherit and charm and charisma and ingenuity

that he could win kim jong-un over and like his predecessors give away whatever they ask for on the blind faith that north korea will do the right thing. >> we'll call sister kim a little kim as a point of reference. but let me ask you about the nu denu -- the denuclearization do you believe he is sincere or not. >> if we don't have a quarter century, i want to believe maybe this time around he is sincere but you look at what kim conveyed to donald trump via the south korean envoys. kim said he's-- amenable fro talking about denuclearization and those activities are prohibited by more than 10 resolutions so it is no concession and he's already

created this illusion that he is amenable to making concessions and talking face-to-face so this is a trap and there are many more serious traps along the way on the path to pyongyang. president trump really needs to understand that nuclear diplomacy is international politics at the highest level short of waging war. if he fails then he would have preempted himself of the one effective nonlethal means of putting real pressure on north korea which is sanctions enforcement. >> you are always very definitive professor thanks so much for joining us. sung yoon lee. fletcher school of diplomacy. >> contessa brewer is getting the first tv intvi werewith the new ceo of wynn. she'll bring that to us, next. who's the new guy? they call him the whisperer.

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. welcome back the a strong rally underway on the back of the jobs report. the dow is higher been 379 and s&p up by 1.4% and a bid for risk utilities on the flat line and telecom and consumer staples the safety play and verizon in the corner and strength in industrials and technology as well as materials. and let's go to the bond market on this jobs friday rick santelli is there tracking the action at the cme. >> hi. exciting day in the fixed income markets. looking at an intra day of tens and two hours after the wonderful, strong, healthy jobs report, we traded up to a 291 yield. we backed off. now up two on the day. up two on the week at 288. let's look at a chart. december of 2013, 295 is the high and this year back to the last day of december of 2013 and if

we take out that 295 and we came within four basis points, we'd be back to mid 2011. now the difference between tens and boons. this is big. this chart starts in it december of 0 -- of 2016 and the high is only ten or 11 basis points away. the difference in yields is widening and keep that chart in mind because i went as far back as i could with the chart system and november of '93, nothing near it close to record separation and that is a big deal, especially for the ecb. finally, let's look at one-year chart of the lqd when everything is trading green and rates are moving higher. there is some collateral damage. the investment grade etf making fresh one-year lows. tyler, back to you. >> thank you very much. and we are still awaiting that verdict on martin shkreli we'll have it for you as soon as the news comes out of the courthouse there across the way

in brooklyn. we'll take a quick break as the nasdaq is up 1.5% on this green day for equities

to keep our community safe. before you do any project big or small, pg&e will come out and mark your gas and electric lines so you don't hit them when you dig. call 811 before you dig, and make sure that you and your neighbors are safe. every year we mark the anniversary of the haines

bottom, the day he called the bottom in the market since the bottom of 286 for the dow jones industrial average, the anniversary is today today the extra 1.5% with a gain of nearly 400 points by 25,276. >> sunday is a national day of unplugging turn off your devices for 24 hours and go outside for a walk. we lost our wi-fi in this big storm. my son, jane wells, is ready to move right now. jane >> this is a cell phone. this is a cell phone sleeping bag and tonight me and 60,000 other people around the world will do this i'm saying good-bye to my z-- dd he vices for the day of unplugging and the jewish community center for digital detox because america, we have a problem >> it is buzzing if that means

anything. >> what does it say. >> since we've sat down i've gotten three texts. >> the three girls admit they can't unplug completely. not even for a day >> i'm using mail right now to respond to stuff that i'm doing next doing next week if i don't respond for 24 hours. then that's rude to me and unprofessional >> i would be able to give up social media, snapchat, instagram, but not texting >> there's so much i don't think about, like calling an uber or calling my friends to see where they are >> we have two phones. two computers, a dvr, a roku device >> dan is a tech entrepreneur who helped create the national day of unplugging in 2010. he has advice if you want to try it >> the more you can plan your day out ahead, the better off it is you don't kind of want to just wake up and say, my phone is off. i'm disconnected from the world, and i don't have any plans

today. >> now, this is happening as apple is being pressured to create a less addictive cell phone. as they're research, the more you're on social media, the more depression you may have or lack of sleep if you come to this event tonight, they'll have live music, arts and crafts, and guys, they have these things you can play with that are called typewriters. back to you. >> that's fantastic. >> that is fun >> no one will know how to use them >> jane, we have a senior executive here, called lacy o'too o'toole. i called her and said i'm going to be off my phone for the next hour and a half because i'm in yoga class she said, i know, how do they expect you to relax if you can't look at your phone >> plus, the problem is if you always respond in 30 seconds like i do, if you don't respond in 30 seconds, they call the police thinking you're dead. >> they get worried. i find it more relaxing to be able to communicate all the time i do >> destresses you. >> yes absolutely >> jane, stay unplugged.

we'll see you later. >> i'll try. >> all right good luck. good luck. good luck. >> all right, time now for a power rundown. we have three big entertainment topics to talk about so who better to talk about them with than julia boorstin disney's "wrinkle in time" opening today. the reviews have been not so hot. is the company ready for a flop of a highly promoted film starring oprah >> oprah, reese witherspoon, this movie definitely has star power, but the reviews have not been great 43% rating a 30% from people who went to see it, according to rotten tomatoes, but the first night, the thursday night numbers were not bad $1.3 million in revenue. came in from thursday night's screenings disney says it's pretty much in line with other family movies such as "alice through the looking glass. that movie went on to gross

about $300 million worldwide we'll have to see how world of mouth is but even if "wrinkle in time" bombs, disney has "black panther. it's likely to beat wrinkle in time at the box office, and it just opened in china well on its way to top $1 billion in global box office >> huge movie. huge movie and speaking of huge and disney, shareholders rejecting a pay package for ceo bob iger that could be worth up to $300 million. but it doesn't necessarily mean he won't get the money if anybody kind of deserves a big pay package, maybe it is mr. iger >> it was a nonbinding vote. 52% of shareholders rejected the proposed pay package, but it was nonbinding what that means is the disney board said they accepted the results of the nonbinding vote and they're going to take it under advicement for future ceo compensation the numbers here are huge. all tied to the completion of the acquisition of 21st century

fox. iger could bring in up to $48.5 million a year over four years plus another equity grant worth about $100 million because it's all nonbinding, they could really do what they want, but there are some experts who say they're likely to adjust the equity grant all of this, of course, hinges on the big fox deal going through. >> we talked about digital detox, putting your devices away, but curiously, facebook says it wants to be more distracting for people while they're working. explain it >> well, facebook has struck a big deal with major league baseball they're going to have 25 games exclusively. these are afternoon games, most are wednesdays and thursdays but this is exclusive. if you want to watch this game, it's not going to exist anywhere on television. it will only be on facebook in the united states. what that means is imagine all the baseball fans who are going to be at work on a wednesday afternoon, might end up streaming some games. this is a big deal for facebook. they did a lot of sports deals

in the past. they had some major league baseball games in the bast this is the first time they're exclusive to facebook and it's really a major league deal they had other sports deals with soccer and the like, but this is a move forward for them. they're paying for it, i don't know exactly how much, but it's interesting they're not going to be embedding ads in the baseball games in the beginning it's all about making facebook destination for watching sports. you could be addicted and spend more time on the platform as opposed to unplugging as jane plans to do. >> this really, though, speaks to the competition amongst not just networks but also, of course, the social media platforms for these sports rights, and saefrb carve-outs. these are afternoon games during weekdays they could carve it out even further. >> that's right. there has been a ton of competition. it's worth noting facebook bid as much as $600 million for some rights to indian cricket games >> julia, sorry to interrupt you. we have the sentencing for

martin shkreli >> the judge has just handed down a sentence of 84 months with credit for time served for martin shkreli that's seven years he, of course, has already served six months. that sentence applied to counts 3 and 6, two of the three he was convicted of for the eighth count, she said she sentenced him to 60 months, but that's going to run concurrently about 6 1/2 years for martin shkreli is the sentence. she's also ordered three years of supervised release on each count which will run concurrently the three years there. the judge saying she wasn't confident that the minimal sentence of 12 to 18 months, which was requested, won't deterhim so a seven-year sentence for martin shkreli credit for time served equals 6 1/2 years for martin shkreli in the three counts of securities fraud >> the judge came in right down the middle, right? because the spread was 18 months to 15 years. so seven years, right in the center >> that's right. that's right, michelle the government prosecutors had

asked for no shorter than 15 years. splitting the difference in the martin shkreli case. >> when will it be determined where he will serve the time >> we expect that will take some time the bureau of prisons will have to determine that. he has been in the metropolitan detentional center here in brooklyn what his attorney has called a maximum security prison. it's unclear where he's going to go it will depend on family concerns, geography, and the length of his sentence we expect to hear that in the coming weeks to months >> what was shkreli's reaction when he saw this, and do we expect to hear from his attorneys? i assume he's just remanded back into custody we won't hear from him >> that's what we expect we do expect to hear from his attorneys shortly when they come out of the courthouse. i have been standing out here, our wonderful producer has been sending me headlines so i don't know what martin shkreli did when he heard that, but dan for

cnbc.com is in the courtroom he'll file a story any minute. check there for more color from him. >> seven years, right down the middle of what could have been the low and also the high, which is what the prosecution wanted >> meg, do we know anything about the terms of his condition? his lawyer claiming he's in a maximum security facility. generally when you're convicted of white-collar crime, you don't go to maximum facilities any idea what type of facility he'll be sentenced to? >> it's not clear, but there was some discussion of that. martin shkreli had said during one of his live streams if he went to prison, it would be club fed. but his attorney sort of referred to that sort of camp idea as something that wouldn't be possible for shkreli because his bail ozremanded and because the judge said he represented a danger to society. so it's really not clear what bearing that will have, and there was some indication that braf fn and the rest of his team will try to change that language

to affect which prison he goes to potentially. but we just don't know right now. >> all right, meg, thank you meg tirrell standing outside the brooklyn courthouse where martin shkreli was sentenced to seven years in prison. the second hour of "power lunch" begins now meantime, we want to get a check on the markets we are in full rally mode after a blockbusters jobs report that shattered analyst expectations but managed to be goldilocks when it came to the wage inflation number the dow is up by about 1.5%. s&p up by 38 points. nasdaq is higher by 105 points, or 1.4%. financials and energy, you're leading s&p sectors. utilities and telecom, the only sectors in the red right now chevron, intel, caterpillar, the top stocks powering the dow. the nasdaq, by the way, hitting fresh all-time intraday highs for the first time since january 26th lam research, wynn casinos,

netflix pushing it to new heights. let's get to bob for more on the rally. hey, bob >> you know, what's amazing is a lot of things could potentially could have gone wrong this week. in fact, didn't. the three big issues that could have blown up resolved positively, at least for the markets. this is the way i look at the world, check, check, check first thing that could have gone wrong, the jobs report but it didn't. it was market positive overall tariffs, well, that could have been very wrong, but the carve-outs in there, still a bit of a wild card, but certainly better than it was on wednesday. and nbc talks, the biggest geopolitical issue for the world at the moment is definitely a positive for the markets you throw in the global growth stories and a lot more has gone right than wrong for the markets. that's why we're sitting at new highs. we're back to cyclicals, back to the dwroeth stogrowth stories financials and tech are the sectors leading higher even energy, which has been a laggard, to the up side. we don't have a lot of big

historic breakouts however, we have a couple dissector moves. technology at a new high nasdaq composite, a 52-week high we're only 3% from a new high on the s&p 500. you can see that 3.3%. dow, 5% from a new high. we're getting awfully close, but the nasdaq is already there. how about for the sectors this week growth is back the cyclical sectors industrials are leading and technology is leading. remember something, financials and technology are 45%, 48% of the entire s&p 500 when you get banks and technology all as a market leader for the week, you're going to drag the rest of the s&p 500, materials only about 5% of the s&p by market capitalization you get big names moving forward, you get new highs that's exactly where we're sitting right now. it's about industrials, about tech, and about financials back to you. >> as we see the dow up 369 points thanks, bob. >> nine years ago today in the depths of the financial crisis, after three straight weeks of falling markets, much loved and

much missed cnbc anchor mark haines made a prediction >> i'm going to step out on a limb here. >> this is -- hold on, everyone. we have been waiting for this. >> i think we're at a bottom i really do. >> on the anniversary of what we call the haines bottom, we're looking at how far stocks have come since that historic call. dom chu has the numbers. >> gut wrenching at the time being on wall street and watching what was happening at the s&p 500 hit the level of 666 intra day on march 9th of 2009 during that timespan, since the bottom, we have seen a four-fold return in the s&p 500. a massive move higher, but not every sector has participated, and some have done better than others since that bottom, that massive 300 plus return, you mentioned, at least bob did a few moments ago, the idea that tech and financials are a huge part of the market they're a big driving force behind the haines bottom bounce. consumer discretionary is the

best performing sector a 561% return. technology, 500 plus percent, and financials, 473% that gain is from the bottom on march 9th, 2009. it doesn't take into account for the banks how much they lost before that during the financial crisis as for some of the sectors that have underperformed, you look at utilities. only a double, really a little more than that, since that time. telecom, only up 78%, and energy up 58% some of the leaders and laggards, but we do know if someone bought an index fund in the s&p 500, it was a four-fold return >> the dow on march 9 of that year, 6547 where are we now well above 25,000 and change thank you very much. >> what was it like being on wall street during the financial crisis three folks at this desk remember it very well. we weren't maybe on wall street, but we were here what were the signs that indicated maybe we were nearing a bottom joining us are two wall street

veterans when you're called a veteran, it's really trouble. art hogan, chief market strategist, and ryan dietrick. senior market strategist at lpl financial. ryan, let me start, i remember those days and i am a terrible investor and so what did i do i sold because some of the iconic companies like general electric were trading at $4 and $5. there were questions whether some of them would even survive. well, of course, leemann didn't survive, and a lot of them went away, but it was that kind of hairy time >> that's right, tyler a lot of us probably would like to forget that time. and that's exactly right i remember sitting around the table sunday night getting ready to eat dinner and just dreading futures opening. you see global markets were crashing that was a unique time, but the other thing i liked, i came on, first off, happy haines bottom dame i came on a couple times with mark, and the fact we're still

talking about him and honoring him, he was such a great guy getting to know him, a special time to talk about him when he passed in may, we remember him dpen. so getting to it, what happened leading up to that too much everage leading up to the peak in 1990s, too much confidence and then too much spending in the 1980s at lpl, we say bull markets do not die of old age they die of excesses we don't think we're seeing anywhere near the level of excesses in leverage and confidence in spending as we saw in previous market peaks hopefully we'll talk about the haines bottom and we'll be at the tenth anniversary of that. >> art, you had a call on a bottom that was a little earlier than mark's. maybe it was the almost bottom that was several months before what were you seeing at that time and why didn't that turn out to be the ultimate trough of the market >> yeah, i guess instead of the ultimate, it was the penultimate call at the time, we were starting to

see some positive traction in terms of reaction to what was going on as you mentioned, leman out of business over the weekend, they were supposed to be taken out by somebody as it turns out, bank of america bought merrill lynch instead the selling became very self-fulfilling. what started to turn and the crescendo of selling i saw in the october timeframe, which kind of missed the low by about 6 1/2% was we're starting to see the government take action actually getting things like the bazooka that the treasury sector wanted, having companies talking about buying back their shares there was a bit of a turn that culminated in the actual bottom that mark hit so well. an amazing call. what people forget, in the next 40 points, we bounced about 30%, 35%. an amazing v-shaped recovery there. we see what the market has done since then at the time, ittic looked like there was no bottom to this, and really, self-fulfilling selling. agnostic, vertical business model. everything was for sale. >> ryan, let's get to the

takeaways. you mentioned bull markets die of excess. what do you think could be the candidates there >> well, the candidates could be simply a little too much confidence we do have a lot of confidence coming in from the contrarian point of view. that's one potential worry inflation, we all have been talking about inflation a lot. but to honor mark, i came on with him and talked about technicals a lot i want to talk about technicals right now. look at broad participation we had. as we said, technology is making new highs. microcaps are right there, small caps are hours away from new highs. there's a lot of participation here, and that is something we didn't see in 2006, 2007, certain sectors started breaking down in the late 1990s, tech was about the only thing going higher such broad participation now, we have continued to be a buyer of the dips, and bull markets do not end when you have this much participation. that's in honor of mark. >> in terms of lessons learned, one lesson that we learn over and over again, wall street isn't great with soft metaphors. blood in the streets, right?

that's when you should buy when people are fearful, when everyone is terrified, that's the moment to make the most money. it's so hard at that moment to actually do it >> it certainly is you know, you think back about what's happening and your friends are losing their jobs. people all around you have their companies going out of business. that point in time when you're supposed to buy when people are the most nervous, as warren buffett always says, it's the hardest human emotion to get over it goes completely contrary to what we think we should be doing, taking action at that time as the longer term track record of the stock market will show you, that's exactly what you should be doing. you should sort of fight that urge to panic and think about what the fundamentals look like and what the longer term prognosis is for markets because all of these recessions great or small come to an end and the business cycle turns around. the lessons learned is we'll have to keep remembering this,

when people are panicking the most, that's where the largest opportunity tends to be. >> the mathison corollary is don't sell at the haine serx bottom >> speaking of the markets, one dow stock in the green is goldman sachs. according to reports, ceo lloyd blankfein is planning to leave the firm as early as the end of the year shares have rallied since he became ceo in june of 2006, and the stock is higher today by 1.5% not concerned about his departure, it appear wheres on the line is jeff harte, and charlie bobeensky. gentleman, good to have you here we were just talking about the financial crisis, jeff, and i think back to when lloyd blankfein pulls up to the new york federal reserve and there's some kid in the car with him he says i feel like i'm going to throw up he said it's not like we're landing on omaha beach we're pulling up to the federal reserve. just relax he always had a good sense of -- always has a good sense of

humor. what do you think of this move now, jeff? is this a reason to change your opinion on the stock which right now is a buy >> it's funny, i'm surprised how often i use that quote in conversations at work. but eventually, the time is going to come for lloyd to move on he's 63. he's been in the position for 12 years. and an important part of being in that position at goldman is kind of taking on the responsibility to manage a transition and kind of bring the next management team up. and i think, you know, we're potentially looking at a decent time to make a change. i mean, last time i talked to lloyd was end of late 2017, and i got really no indication that he was thinking of it. he actually seemed more energized than i had seen him in a while. but you know, if the volatility keeps up, 2018 is off to a good start. it could be a good year to kind of leave on a high note, and he's got a couple of kind of potential replacements or heirs in place who are at the right age and it's kind of the right time to do it. as much as i wouldn't have said

i was expecting it, the more i think about it, you know, end of 2018, some time in 2019, might make some sense. bigger picture for goldman, i don't think it would change a whole lot. it's run by kind of committee as much as one person so i don't think this would shift or signal a big strategic shift. >> charlie, you own 6400 shares of goldman sachs are you selling as a result? do you have any viewpoint on the shares that's different now as a result of the possibility that he's going to be gone by the end of the year? >> absolutely not. i would say this is the deepest of management teams of any of the big banks. there are a lot of us who feel towards lloyd blankfein the way people did towards winston churchill when he was running for prime minister in the '50s we owe the survival of the company to him, so we're going to give him as much time as he wants. he really led that place through a time when lehman brothers went to zero, when bear stearns went to zero, when citi lost 90% of its value.

he was the risk manager who got them through very strong he came from j. aaron, so he has a little bit of a commodity trading background that's hurt him lately obviously, commodities haven't been the right place to be, so goldman has maybe been overemphasizing trading the last couple years but he's done so much for the firm and all of wall street that we're willing to give him the time he wants. >> in total, that's fair, but at this point, taking a look at goldman sachs' performance over the last 12 months, year to date, it's underperformed its peers. in your view, is this potentially a chance for goldman sachs to pig the guy who's going to pivot a little bit into the areas that may give goldman a little more growth than trading has over the past couple years >> yeah, that's absolutely fair. so the last year has not been a good time to be a bond thick trading firm unfortunately, they haven't made as much of a move into, say, asset management as maybe a morgan stanley has or institutional asset management

so sure, you can say they haven't been perfectly positioned the last year he's still in the capital intensive businesses which hasn't been a great place to be. the short answer is yes. probably the right time to make a transition, but let's not forget, a lot of us who are shareholders would have lost an awful lot of money if other people had been running this place. >> yeah. jeff and charlie, thanks so much >> thanks for having us. >> thanks. the other big story of the day, pharma bro martin shkreli sentenced to seven years for securities fraud meg is at the courthouse with the latest >> we are waiting for shkreli's defense team to come out of the courthouse any minute and give us a statement right now, the judge has sentenced him to 84 months or seven years with credit for time served he's already served six months in the metropolitan detention center after his bail was revoked here in brooklyn so that is for the three counts, including two of securities fraud and one of conspiracy to commit securities fraud that he was convicted of back in august. having to do with former hedge

funds he ran and a former biotech company he ran this has nothing to do with what made him famous and gave him the moniker the pharma bro, which is what he did at a later biotech company, buying the rights to a decades old medicine and raising the price by 5,000%. and one of the things the judge made clear is she was not sentencing him based on what he has become famous for. she's sentencing him based on his crime. he'll get seven years or about 6 1/2 for time served for the three counts, including securities fraud >> thank you, meg. live at the courthouse in manhattan. here's what else is coming up. new ceo taking over at wynn following the ousting of steve wynn ahead, in his first tv interview, we here from the new ceo about his plans for the company. >> has bro and mattel takes a big down today >> plus, americans flipping more houses but making less money doing it we'll tell you why all that and much more coming up on "power lunch.

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dow jones industrial average at one point higher by 400 points up 400 points with a gain of 1.6% tremendous rally in the wake of the jobs report we saw this morning. s&p 500 higher by 41 points. nasdaq higher by 114 these are all gains of more than 1.5% also rallying today, shares of

wynn gaining back nearly all of the ground the shares lost after the sexual misconduct allegations against steve wynn, the founder. contessa brewer joining us from las vegas where she got the first ever tv interview with the company's new ceo. contessa >> michelle, so the analysts now think this was a huge obstacle removed from the future path for success for wynn resorts this was about a long, dirty, drawn out case between co-founders. when the big warring personalities were taken out of the mix, you had two companies who decided it was in their best interest to settle it and move on matt maddox told me when i sat down with him, this was a huge priority as soon as he took over the ceo role he's taking over in a time of greats crisis for wynn resorts >> you know, martin's fine, and he will be fine, and obviously, it could have been a lot worse

>> then what about the work he's doing in prison? how much will that go toward any sort of reduction or any sort of goodwill >> i think he will get the benefit of every program that he is eligible for. and with the time he's already been in and the 15% good time credit, i think the sentence will be significantly less than seven years. but that's where we are. thank you very much. >> less than half of what the defense was looking for. is that any victory for your team >> it's hard to claim victory when someone like martin shkreli has gone to jail if you're asking me could it have been worse? absolutely the government did not get what they wanted. we did not get what we wanted either this is a good judge who i think spent a great deal of time trying to examine the facts and all of the letters that were written on behalf of mr. shkreli. and she made her decision, and we all have to live with it.

i don't want to discuss that now. >> will you appeal the sentence? >> martin is fine. >> he said something to you, seemed to lean forward and said something to you >> just said thank you >> the sentence? >> we don't know yet thank you very much. >> ben brafman is his attorney, commenting on a couple things. responding to meg tirrell's question, what did martin say to him when he leaned over? he said thank you. relieved he didn't get the full 15 years that the prosecution was asking for, only seven years. let's get back to contessa brewer who was so rudely interrupted with her exclusive with the new ceo of wynn resorts. contessa >> a lot of news happening today. the big news on wynn resorts was the settlement of this big lawsuit that's been dragging out for six years. it removes a huge potential money liability, some analysts predicted it could have been $5.3 billion had judgment come down against wynn resorts, and

also the possibility of dirty laundry getting submitted as evidence in open court matt mattox said it was one of his first priority as ceo, and he sat down and talked to me >> when i took over, i knew what i wanted to do which was to talk to a reasonable management team in tokyo, and get this behind us. and make a settlement. >> in what way does it clear the way for the future for wynn resorts? >> it was just an overhang that took too much management time and too much attention it was taking the air out of the room and so when i looked at it, i thought buying back 24 million shares of stock at $78, financed at a 6% interest rate, is great for our shareholders just make that deal and be done. >> when did you learn about the complaints about steve wynn's behavior >> the complaints i learned about when they became public in

a press release a couple years ago in the middle of a proxy issue with a former board member >> so that has to do with a $7.5 million settlement >> that's correct. >> were you aware of that set e settlement in 2012, in 2013, earlier? >> it was when the press release came out, and i read about it. that's the first time i had heard of it. i asked internally about it and was briefed. >> what about the complaints by employees? you never heard about the concerns people had about steve wynn >> there was never a complaint that made it to me we have hotlines in this building that are available since our inception. we have never had a complaint on our anonymous hotlines in the last 15 years. either here or in mccal. so no, there were not complaints, formal complaints coming up to me to investigate but i tell you, we're taking

these issues very seriously. >> two days ago, you took an unusual step of making a mid-quarter investor call. why did you do that? >> the -- there had been a lot of news about wynn since the fourth quarter and i felt like i wanted to come out and tell people about what's been going on since i have been ceo. we're fought going to do two-month updates in the future, but i thought it was a good opportunity to talk to people about our business in las vegas. >> i have to ask you, because you worked so closely with steve wynn, you were working side by side with him. were you there, were you watching the decision he was making to resign >> i was there i was there. >> what did that look like >> it was a board meeting. and mr. wynn came in and told everybody that he thought that it was time for the company to

move on and that he didn't want to take the company through this avalanche of media activity. and that he was going to resign effective immediately as chairman and ceo >> what was the reaction when he said that in the room? >> it should be no surprise that it's been quite an emotional roller coaster and i think the reaction is that was really strong leadership to step up and actually step down from a company that he founded, to make sure that the company is protected. >> was that the right call in your opinion >> it was the right call >> what do you think steve wynn's legacy is >> i think history is going to determine steve wynn's legacy. he clearly is the founder of modern day las vegas and was an integral leader, integral part and leader in the shaping of modern day las vegas.

>> have other companies made offers to buy wynn resorts, either in whole or in part >> we have had no offers to buy wynn resorts >> would you entertain offers to buy wynn esorts? >> as a ceo of a fiduciary duty to entertain anything, but what i can tell you is we're not for sale, and there's been talked about making the company up. that makes no sense. to pursue strategic alternatives in a time when the narrative is not about the business is a mistake. so what i'm doing is i'm getting everybody focused again on what it is that we do we build places that are fun and that produce the best returns in the business >> so there are still a lot of challenges to producing the best results in the business. namely, a slew of shareholder lawsuits among the biggest, oregon and new york state suing the board over the breach of fiduciary responsibility there are new victim lawsuits against steve wynn, and potentially against the company as well that need to be settled. but it's clear that matt maddox

sees this as an opportunity to turn over a fresh leaf, to refocus energy on making his employees feel valued and proving to shareholders that there is real value to come in this company guys >> all right, thank you very much, contessa brewer, reporting live from las vegas. >> netflix up more than 71% just since the start of the year. straight ahead, the big bull case for the streaming giant stay with us on "power lunch."

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netflix stock has been on a tear, shares of the streaming giant have soared more than 71% in the first month of 2018 this on the heels of recent high profile talent deals including shonda rhimes, jerry seinfeld, and perhaps president obama, who is in ongoing talks right now. our next guest thinks netflix has more room to run he raised his price target to $360 let's bring in michael olson good to have you with us >> good afternoon. >> where does the upside come from >> well, it could come from a lot of different areas netflix is on fire right now, and i think you could look at pricing, we could see price increases as they continue to get better content you could see subscriber growth that's above expectations. that's what our note was about we do an analysis of google

search trends, looking at key words people are searching for that relate to netflix had a very high correlation, this analysis we do over the last few years what we found is key one looks like it's shaping up to be another quarter, especially for international. >> and international is better margins, is that right >> well, today, it's not so they have a contribution margin that they measured off of, which is basically cost of content and marketing, taken out of revenue today, it's not. over the long term, a lot of people believe it could be we're not modeling for that at this point, but the thought being that the u.s. is the most expensive content market and the most competitive as they grow the international subbase, there's a potential for margins internationally to be a lot higher >> stock is up 70% so far this year is there a point at which you would get concerned that it's moving too far too fast? >> well, we do get a lot of questions from investors about the valuation of the stock even today, raising our price

target to $360, we had to use a multiple that's 62 times 2020 eps, which can sound like a pretty steep multiple. >> yes >> but when you think about how that compares to the growth rate, if we look out over the next three years, we expect eps growth to average about 75%. it's still a discount to growth on a pe to growth basis. >> tell me about the correlation between what people search for on google versus how the company performs give me an example, people look for x, and therefore, what >> yeah, so we have over 30 search terms we use, so it could be something related to, for example, the term netflix shows would be one example or one of the terms. and we run a correlation analysis related to that, and what we found is over the last 22 quarters, this analysis of search terms, which we don't share what all of those terms are, essentially has a 0.93

correlation. q1 is going to have international upside domestic should be in line based on what we're seeing it's only preliminary, so we have to see how march shakes out. >> thanks for your time. appreciate it. michael olson. >> thank you let's get back to the oil market, closing for the day. jackie deangelis back from her travels in western pennsylvania, kentucky, i can't keep track >> crude prices are getting a bounce of near 3%, testing the $62, finally breaking through at the close, and that is a key technical level. this morning's jobs report helping lift the stock market up and crude prices as well also, easing concerns about that trade war after yesterday's tariff announcement helping too. this is also exactly when seasonal pricing stream picks up, anticipating better weather and stronger demand. that weather may be an issue most analysts feel the market will hold over the $60 mark. the sentiment out of ceraweek

much more positive >> president trump agreeing to meet with north korean leader kim jong-un. the first meeting between a leader of nbc and a sitting u.s. president. straight ahead, we'll talk to hugh hewitt about potential risks and rewards of this summit >> also, airline shares moving higher and outperforming the major markets. brian sullivan got a chance to sit down with the ceo of southwest. and the cfo. here's what he had to say about how they disrupted the industry and tried to stand out from the crowd. >> we were the disresulter i mean, it's the classic story of disruption. and we were the largest airline in texas and the example for deregulation by 2003, we were the largest airline in the country in terms of customers well, how did that happen? we had a lot lower costs we charged a lot lower fares the rest of the industry could

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hello, everyone. i'm sue herera here's what's happening at this hour south korean president moon thanking president trump for accepting talks with nk north korean leader kim jong-un. moon spoke at the paralympic games ahead of the opening ceremony he also announced athletes from the two koreas would hold the olympic together to enter the stadium. >> china accusing president trump of damaging world trade by adding tariffs to steel and aluminum imports china's commerce minister said trump's move violating world trade regulations by adding tariffs without negotiations >> the neighbor charged with attacking rand paul pleading guilty in court this morning last november, the 59-year-old tackled paul outside his home in bowling green. leaving paul with multiple

broken ribs after becoming angry over a landscaping dispute >> and a little bit of good news on the flu the flu season appears to be winding down the cdc says circulating viruses have designed. cases are widespread in 34 states, but that is down from nearly the entire country just a few weeks ago. you're up to date. that's the news update i'll send it back to you guys. >> thank you, sue. let's get a check on the markets now. stocks surging after that strong jobs record that crushed analysts' expectations goldilocks with the wage inflation number not causing too much concern about inflation at large. we had been up as much as 400 points we're now up by 378 or 1.5%. the nasdaq hitting an all-time intra day high we're at a gain of 1.4%. s&p higher by 40 or 1.5% as well as for some of the leaders we're seeing in the markets, financials certainly among the big winners. financial etf xlf up

blackrock, state street, etrade your leaders transports also moving higher, on pace for their best day since january. all components there positive with the exception of alaska air, norfolk, avis, and kansas city are your leaders. bitcoin down 21% in a week >> president trump ticking off items on his agenda. tariffs on foreign steel and aluminum the first ever meeting between a sitting u.s. president and a north korean leader. job gains of 313,000 in february the most in a year and a half. here's what treasury secretary steven mnuchin said about the president's accomplishments on "squawk alley" earlier today >> one of the great things is this is not a conventional president. and because of that, we're getting results that we wouldn't have otherwise seen. >> more now on the president's big week with nbc news political

analyst hugh hewitt, also the host of the hugh hewitt show on msnbc. how about what mr. mnuchin said, hugh it is certainly true and an understatement that he is an unconventional cat he has made a lot of people, including many in what i would call the republican establishment, very uneasy with his moves on trade and tariffs and maybe some in the national security environment uneasy about sitting down with kim jong-un. what do you think? >> well, tyler, i haven't seen one republican in congress endorse the tariff move. it was widely reviled. in fact, no one has been shy about that leader mcconnell, speaker ryan, everyone hates the tariffs they turned out not to be as bad as peter navarro tell aographed when he said there would be no exceptions or exemptions there are, so the president head

faked us a little bit but we don't like it, by we, i mean republicans on north korea, i haven't heard many people say anything because they don't know quite what to say. the reason being nothing has worked since the 1994 deal that bill clinton did it's been one disaster after another. every president, they all tried something else with north korea. nothing has worked so now president trump announces that he's open to this, sarah huckabee sanders just concluded her briefing, and they said we're not sure where, we're not sure when. and they still have to do a few things first maybe it will never happen, but if it does, it can't be worse than what's happened for 25 years since the 1994 clinton agreement, because it's downhill >> i suppose, and i want to probe a little bit, i suppose one could say a very similar thing about our trade policy with respect to steel. it's been -- we have tried or not tried things over the years. and things haven't improved there. so he's going a different way. do you hold out even the slightest possibility, hugh,

that maybe this might just work a little bit >> no, i don't, tyler, because george w. bush tried the steel tariff thing in 2002, and as josh bolten, his last chief of staff said, he's not late, very mch alive. but josh said, no, look, we did a downstream analysis. it cost us hundreds of thousands of jobs and growth didn't bring back steel and aluminum these things do not work peter navarro is an old acquaint nls of mine. he's a left winger he ran for the mayor of san diego as a left winger he ran for congress with hillary clinton at his side in 1996. went to the democratic convention why peter navarro is making trade policy from right out of smoot-hawley, i don't know, but i don't think that's going to work north korea might. we had a lot of unusual things like nixon surprised us with china. and no one saw that coming and that turned out to probably be the most successful summit in

modern american diplomatic history. >> hugh, i was going to say, to your point about the concerns about trade, we asked mnuchin very particularly about, i don't know if you saw the "wall street journal" editorial today there were two, actually, where they expressed great concern about the departure of gary cohn and the fact that the protectionist wing seems to be taking over and worried that donald trump was driving into what they called the herbert hoover ditch want to play that for you, mnuchin's response, and get your response >> i like gary a lot we're sorry to see him go. we have a very deep economic bench. gary wasn't the only person talking about trade. we have had a lot of economic analysis from kevin hassett and others and i can assure you that president trump is going to be no herbert hoover. >> feel better, hugh, that trump is going to be no herbert hoover >> that's not promising much like promising i'm not going to be playing in the nba. look, i'm telling you, it's so bad to believe that this is

anything other than smoot-hawley light that i am a little worried about thant. kevin is a very good economist i haven't seen him endorse this approach i hope they bring andy puzner in to replace him, or someone who is a traditionalist when it comes to free trade. mr. mnuchin is very accomplished the markets are doing well the job number is extraordinarily great, but tariffs don't work they never have, they never will not in the modern era. you can go right after china if you want, on intellectual property violation you can goarve china on dumping, on any number of things, but we swung at china and hit australia. and these tariffs coming back on bourbon in kentucky and harley davidsons in wisconsin, they know that's mitch mcconnell and paul ryan. the world is sophisticated they know how to hurt us in 100 different ways in 50 different states and they're going to do that i hope the president takes counsel of andy and of john taylor and just not peter. charming though he might be, he

doesn't have a clue on this. >> all right, hugh, on that note, we'll leave it have a great weekend hugh hewitt, the host of the hugh hewitt show on msnbc. always good to have you. >> thank you toy makers hasbro and mattel are dropping sharply after a report toys "r" us could liq liquidate their u.s. stores. the stocks are up down 2% and 7% respectively we're going to talk about the options for toys "r" us and the teiarile effects in the toy business when "power lunch" comes back in two minutes. the eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

hasbro and mattel are down big as the future of toys "r" us remains up in the air. some reports saying they're getting ready for full liquidation of all of their stores what happens to the two toy giants next? courtney reagan joins us with the latest sort of like death by 1,000 paper cuts >> we know they're weighed down so heavily with debt they have a lot to work through, now bar clay's analyst says current consensus estimates for mattel and hasbro have not factored in the complete liquidation of toys "r" us u.s. stores but now it's time to do so she's factoring in a complete liquidation. about 9% of hasbro sales come

from toys "r" us she thinks hasbro could withstand the liquidation better than mattel. she's holding hasbro at overweight, lowering the price target to $100 mattel is early in the turnaround plan. it could be a more significant hit to the barbie maker which would push out mattel's recovery or potential recovery. she's lowering her mattel recovery to underweight with a price target of $13. analyst brett andres estimates between 60% and 80% of hasbro's toys "r" us business will ultimately be absorbed by other retailers, but that could take up to two years or more. toys "r" us carry many more specific toys than other retailers are going to find space for. by sales, though, walmart is the largest u.s. toy retailer followed by target and amazon. toys "r" us sales have shrunk over the years what's interesting is the company gives 210 days to renegotiate leases from the time the bankruptcy has been filed.

when time runs out, it's very rare than a liquidation isn't the result for retailers i counted, today is day 172. april 16th is really the drop dead date. so it takes a lot to renegotiate those leases in order to really get in front of it, most it, mo fighting chance, need to start doing that before they file. because once that clock starts, it's very hard to make that time change -- or that time limit, rather. >> it will be weird for the toys "r" us brand to disappear. >> it would be then you think back about sports authority, which was a big presence - >> circuit city. >> radio shack. >> that's what one of the other analysts point me to he said, look at sports authority. when they went out, it took a long time for that to work throughout, to reabsorb within the rest of retail. >> have a great weekend. >> you too. energy getting a friday rally after a rough couple of days we'll debate that straight ahead

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institute house flipping is getting more popular, more risky. diana olick joins us from silver spring >> reporter: it looks so easy on tv find a cheap house, flip it for a profit the investor who flipped this house said it's a lot harder than it looks and in this market you cannot expect huge returns so, you basically gutted the house inside. >> i did. >> reporter: he bought this home in september, renovated it and put it on the market last month. it sold in two weeks >> you have to be able to get in for a low enough price it has to be a hot enough neighborhood and you have to know exactly what the build is going to entail. >> reporter: gross flipping profits, that's without the renovation costs, came in at just over $68,000 last year nationwide, according to adam tat that solutions that's the highest in 18 years when they began tracking it. the dollar profit is higher, but the percentage return for investors dropped a little because the housing market is getting so expensive

still, the number of flippers in 2017 jumped to a ten-year high and the share of flippers using mortgages rose to a nine-year high now, he did well on this house because he's a real estate agent and has also a builder with a lot of contacts to find homes that haven't been listed for sale yet but as more people flip more houses, the competition and the risks are heating up back to you guys. >> thank you sometime for trading nation. let's take a look at energy, one of the best performing s&p sectors today as crude surges. this follows two straight sessions of losses let's bring in the trading nations team chad, what do you think of energy here, the equity side of things it's been the third worst performing sector this year? >> right we're neutral on energy currently, but we think on the intermediate and long term there are headwinds. for example, the u.s. is going to be largest producer and surpass russia, we believe, over the next three years

the marginal cost of energy production here in the united states is falling dramatically and we think that there will be a global slowdown in the next two to three years so this could have a destabilizing effect on the demand curve for energy. hence, the reason why. in the short run we're neutral, long run we're bearish. >> chris, you actually see potential for two stocks in this space. >> well, it's a hard group so we have to pick our spots i'll give you two names we think can work here. the first is chevron, cvx. it held that very important 110 level. we're up through 110, 116 last print. we think mid-120s is ultimately where this is go halliburton, it's another name that held very important support near 45. next hurdle near 48, 49. i think ultimately both these names have some upside we need to own leaders when it's a tough group and energy is still a tough group. >> our thanks to you for more market insight, head to our website

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5:00 a.m. eastern time our brian sullivan is the new solo anchor of the program bringing his unsurpass the energy and knowledge to get you ready for the trading day ahead. the new downside with his hours, and they are early, he won't be with us on "power lunch" every day, but fear not, he's been named senior cnbc national correspondent. he'll join us and other day programs very frequently again get ready, 5:00 a.m., begin the day with sully on "worldwide exchange". "closing bell's" next. ♪ hi, everybody, welcome to the "closing bell" live from the new york stock exchange. i'm kelly evans. i was supposed to be off today. >> i thought you were on vacation. >> i had to come in when i saw the jobs report. and that wage number >> dedication, isn't it? >> was anything else happening >> no, there's nothing else going on today very quiet day i'm bill