>> when it into to 925 intra day. breaking news? >> 182to the 1986, 197 -- >> i get it. "power lunch" starts right now here is what is on the menu. you're fired rex tillerson out as secretary of state cia's mike pompeo is in. what does there now mean for the trump agenda and why are all these business guys struggling at the white house president trump walking the biggest proposed tech takeover ever calling it a national security either. what it means for other tech companies looking to make deals. and former new england patriots defensive and two time super bowl champ jarvis green on building a business empire and why so many fail off the field "power lunch" starts right now.

welcome, everybody, to another very busy, very exciting edition of "power lunch. a volatile trading day to go along where whatever else is happening in the news. the dow was up nearly 198 points at the high. down 113 at the least low. now roughly flat or thereabouts. up when 30 points. speaking of flat, look at the s&p 500. down one and a quarter nasdaq by the way did hit a new record high, but its 7 day win streak now in jeopardy abo off by 26. ten year note hitting their lowest level in a week, a 2.85 1/2 results of a 30 year auction just moments away. and cvs approving buy of aetna it is expected to close now in the second and a half of the year we'll begin with another

major shakeup at the white house. rex tillerson out as secretary of state, larry kudlow in maybe as economic adviser. at least according to president trump. we heard it on the air earlier eamon javers is live with more >> reporter: yeah, another big departure today as you say rex tillerson apparently finding out that he lost his job as secretary of state when the president tweeted about it this morning. he had had some indication in a things were souring in a phone call last week that was not from the president of the united states, but apparently finding out officially the decision had been made when the rest of us did when we saw the presidential tweet earlier this morning in the 8:00 a.m. east coast time. take a look at this chart of all of the big names who have departed this white house over the last year. and just within the past several weeks, we've seen some giant names leaving. rex tillerson, gary cone koecohe hicks, 1 some of the clothes onh economy and communication and now state. the president on his way to

marine one today stopped to talk to cameras and explained some of his thinking on why he wanted to get rid of rex tillerson here's what he said. >> rex and i have been talking about this for a long time we got along actually quite well but we disagreed on things when you look at the iran deal, i think it is terrible i guess he thought it was okay i wanted to either break in or do something and he felt a little bit differently so we were not really thinking the same >> reporter: so you raised the question of larry kudlow that is the name a lot of people are speculating about for national economic director to replace gary cohn. we don't have any official word, but the president had a few nice words to say about larry kudlow this morning >> larry has been a friend of mine for a long time he backed me very early in the campaign i think he was one of my original backers he is a very, very talented man.

a good man and i think larry kudlow has good chance. >> reporter: so there you hear it, the president saying he thinks larry kudlow has a very good chance of becoming national economic council director, but not making the announcement official i'm told here as a matter of guidance not to expect any announcement on larry kudlow today. but they are not ruling it out for later in the week. he is seen as the frontrunner, but the president also says he is looking at other people as well so bear that in mind everything here is a little bit fluid as we have seen through the morning today. and no indication that that announcement is coming today, but of course things change around here. >> always fluid at the white house about seems. thanks rex tillerson of course just the latest to leave president trump's cabinet and his inner circle he joins a long list of departures including gary cohn so why have business leaders not faired so well in this white house or in other white houses for that matter? and what now for the trump

agenda let's talk rex-it and more request state correspondent for "new york times" and also michael allen with beacon global securities he served in the george w. bus white house in a variety of national security and policy roles. gentlemen, very good to have you. can we generalize, is it fair to generalize on the departure of mr. cohn a former goldman sachs player, big hitter there, and mr. tillerson that business people don't work well in this cabinet or were there just particular policy differences and reasons that happened to mean that these two ex-businessmen get shown the door >> look, i think it has taken us a long time to learn this and we have to relearn it again and again and again. business and politics are wildly different. and i think the people who really have trouble in politics

are in many ways the sort of rex tillerson kind of imperial ceo model. politics have a variety of different power centers in washington you know, you really have to manage -- rex tillerson's two big jobs was to manage the white house and to manage his department and he really didn't do either of those very well you know, we heard constantly that he was really sort of frustrated by the lack of clear authorities in the administration and that is something that really bothers business people you know, you have a clear chart of who makes decisions in businesses but you know in politics, those things are much nor fl more flu. you have the jared kushner, mcthat is ter, meern people involved in a much more collaborative decision making process which of course includes the congress as well and rex tillerson never really

got the decision making chart that he liked. and he often really was poor on the politics he almost never went up to capitol hill he didn't manage the white house. he just didn't get it done >> let me turn to michael and get your thoughts here if you have a secretary of state, the senior member of the cabinet, with whom you have seemingly fundamental policy disagreements over such things as trade, iran, tpp and more, and you you are not including that individual on consequential decisions it would seem like deciding to have a meeting with kim jung-un, isn't it time to go isn't this probably for the best for both parties >> it is definitely for the best especially in washington when your power is how close are you to the president that is where your authority derives from and when people around the world

and in washington perceive that you are not with the president or that there is a gulf between you and the chief executive, you don't have any power you don't have any moxie to be able to get the job done but also i think rex tillerson is a good man, but he was probably the least adaptive secretary of state or businessman to come into this particular role. he liked to study in his so-called god pod as it has been reported and i remember one of his advisers telling me at the very beginning, i said why isn't the secretary getting around town, going to think tanks, the congress and they said he believes that he needs to study and report quarterly just like he did when he was a ceo and that just doesn't work in washington >> we have focused so much right now on rex tillerson and his interaction with the president,

north korea, the foreign policy role natural because he was secretary of state but another core reason he was there was the reorganize oig, call that the reduction in the size of the state department, made people within the state department very unhappy. but it seems that the legacy has kind of done hasn't he worked really hard at that and gotten a smaller state department >> he has, although i don't think that anybody really can talk about how he's done it in any kind of strategic way. you know, he just sort of shrunken it. >> what if the shrinking is the strategy >> right but i think what you want to do is you want to shrink it over here, but not shrink it over there. for instance, the security department of the state department is now by far and away the largest of the 75,000 employees the state department has around the world, 45,000 of

them are security guards and they actually need more. mike pompeo who is coming in, he made his bones really going after hillary clinton on capitol hill about the benghazi attack he believes security must be bolstered around the world but tillerson really was trying to just get rid of everybody and a lot of the top security people left as well. so that sort of didn't make sense. tillerson just had a tin ear i was with him on his last trip to africa. and we were talking amongst us why are we going to africa when the south koreans are coming to washington a brief the president about their conversations with north korea. that is by far the most important thing going on in the world right now. it was tillerson's biggest agenda item. and he wandered to africa when the most important thing on the north korea problem was in washington >> that seems like a poker tell of how distinctly he had been

exiled from the policy making thing. i want to come at might be shem's question frshe michelle's question at a different angle. sure mr. tillerson wanted a smallerbe michelle's question at a different angle. sure mr. tillerson wanted a smaller staff, but i believe that there are multiple, multiple positions on the state department staff there is no ambassador to south korea right now as i understand it there is no assistant or deputy secretary for east asian affairs. the senior official who knew the most about the bilateral relationship between south korea and north korea recently quit. aren't those absences concerning or are they? >> they are very concerning. and look, it is symptomatic of the larger problem that the secretary had. his board so to speak is the white house. he did not have the confidence of the president or his senior advisers

he couldn't get miss ohis own personnel through the political clearance process, so they just allowed to stalemate that makes absolutely no sense to me it didn't really make business sense it certainly doesn't make political sense. and when you are focusing on a r reorganize, that is in the what the secretary ought to be doing. he ought to be outreaching out to our allies or otherwise advancing the country's objectives so i think he was too insular, his agenda was too small and he was allowed to be defined by budget cuts that he did not -- he was not seen as fighting. >> all right gentlemen, we have to leave it there. appreciate it. and a news alert, bond market 30 year bonds up for auction, what do you think knows what the results were? i do rick santelli does >> yes, the last of the 62 billion in supply turns out to 13 billion 29 year 11 month

bonds. 30 year bonds reopened from february i gave this the best grade in a while, a b-minus and the reason why, the yields was wlis kerr under 3.11, 3.109 pl exactly where it is trading now. but here is the bright point 3.11 was the offered side, so it priced right if you look at the bid to cover at 2.38 over subscribed 2.38 times, that was above the auction average. weak link, 63 is the ten auction average percent on indirects this was 57 .9 kind of the softest since november 16. but it was more than made up by direct bidders, a whopping 14.8% double the ten auction average best since february of 2015. dealers take 27.3. on so b-minus. you are get a little buying coming in, let's see if that holds true >> we'll watch for that.

and markets once again seeming to shake off the drama in d.c hey, bob >> we are trying to get back into positive territory. the problem is the market leadership is stretched. i'm talking about technology stocks remember we started accept any conductors again the leadership, a lot new 52 week highs.any conductors again the leadership, a lot new 52 week highs. but momentum guys getting out of big trade. financials and tech weak, you can't advance themarket. look at the semiconductors we had new highs in micron, invidia, but you can see it didn't do much in the middle of the day. fell apart on the momentum trades smh, this is what you want to watch. and it slowly just about 10:20 moved south as momentum traders sold a little bit of weakness. that still trying to get in to positive territory my thesis is tech is very stretched. s&p up 2% on the month and all

of these other ones all up dramatically let me note what does it mean to be overbought? if you are over 70 on a relative strength, that is overbought and we have stuff that are in 80 and 90 and that means that you will definitely have trouble advancing. guys, back to you. >> thank you very much for more insight, let's bring in partner of villery company and also from u.s. bank private wealth management. gentlemen, thank you so much for joining us >> do you need some water? >> looking at the market action, we took off the tillerson thing. he didn't seem to have that much effect on policy right? >> that's right. you know, i think i would certainly be surprised if anybody's investment thesis on putting money in the market had anything do with who the secretary of state was not a stunner to see some changes in the administration.

so i don't think that is a big deal >> so what is driving the market right now? >> mainly you're seeing people coming in and out at a rapid pace the market started off very strong, then was down, then coming back. so hard to say what is moving the big picture. i think what is more interesting is what you are seeing on the individual security level where some of the names that are outside the s&p are really showing a little bit of some different type performance, so more interesting things going on there. >> we're going to get in the next two weeks the first real meeting of the federal reserve under the new chairman what do you expect to hear, what would you like to see, and could that be a market moving moment or is it all already baked in the cake, eric >> you you know, it is largely baked in the cake. i think we've seen expectations on the part of investors

increase during the last two months as far as the frequency of the fed's progress towards policy normalization our expectation is particularly with the inflation numbers that we received today, they still have the green light to raise rates. investors will certainly take a keen interest in discerning any shift in the summary of economic projections, the infamous dot blots. so that will be of keen interest but you know, the data that we have seen so far continue to suggest that we're back to trend, perhaps that january print where we saw inflation really spike higher was a little bit more of an aberration. but inflation concerns and expectations are obviously going to be a major influence for the markets throughout the rear. year >> it seems that they thread the needle and we're relying on that to happen in order for things to

remain sort of smooth sailing. when you take a look at a sector like technology, up 11%, are the risks to the up side or down side for a sector that has performed so well? >> you know, we actually are finding opportunities across sectors. but to your point, we do think risks by and large are elevated. the narrative that was so supportive in 2017 looking at synchronized global growth, strong earnings, low inflation, low interest rates, and the prospect for policy stimulus, has aged and we're actually getting to the point where the comparisons become more difficult and the prospect for policy error particularly as we shift from more accommodation to less from a monetary standpoint have kind of raised the table stakes so we are concerned about that we do find opportunities but to the earlier point, we

could certainly see some increased volatility particularly in tech shares. >> and we've seen that so far this year. a lot of people predicting more of it. thanks, guys good to have you on. president trump blocking the chip deal between broadcom and qualcomm what is he worried about and is our own larry kudlow about to head to the white house? we'll have more on that and all of the d.c. drama coming up. you could simulate craftsmanship or you could experience it for real at the lexus command performance sales event. lease the 2018 es 350 for $339 a month for 36 months. experience amazing at your lexus dealer.

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welcome back to "power lunch. nancy dubuc has been appointed ceo of vice media with shane smi smith stepping back to be executive chairman this is a notable turn for a founder, smith, who is in many ways synonymous with the media company. also meaningful because vice has been widely criticized for male dominated bro culture, so meaningful to have a woman as ceo. smith saying vice needs a best in class management team to harness the growth and control our own destiny, whether staying independent, partnering with someone or going public. vice has looked to sell in the past so interesting to watch how dubuc moves the company forward.

>> president trump blocking the biggest proposed tech takeover ever what does this mn r eafotech companies looking to make a deal we'll take a closer look mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

and at $4.95, you can trade with a clear advantage. but through goodt times and bad at t. rowe price we've helped our investors stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence. the president blocking what would have been the largest tech deal ever. chip maker broadcom's acquisition of qualcomm. both sides supporting the president's decision cheer is chuck schumer on the floor a little more than an hour ago. >> let me say unequivocally

president trump and his administration made the right decision on blocking broadcom from taking over qualcomm. we all know that china has been repay issues about trade and very smart they look for places where they can stealissues about trade andy smart. they look for places where they can steal our best technology. >> joining us to discuss the denial of the deal is dan rosen and also john carillon with us gentlemen, good to have you here dan, let me start with you was this a national security threat, a, and b, explain chuck schumer immediately jumps to china, but broadcom is based in singapore led by a u.s. citizen. why is he talking china? >> there was never any debate that there were national security issues around this deal it is also quite clear that this

is not a chinese company but the theory that the unit that has gholt the jot the job for national security issues worked under is that broadcom was libel to influence their biggest customer out there and we couldn't possibly know them as well as we knew qualcomm. we would be not as advantageous position as a government to understand who our vendor was so to speak >> so you think this was a good idea >> this could have been probably mitigated a different time, a different place if china weren't being so unveiled about the fact that it is going a different way than western liberalism, then we probably could have worked out some rarngment arrangement to to the concerning parts out so other parts could have gone through. that was yesterday today it is a different situation. >> and the national security issue in a phrase is what exactly? >> that is where this one gets really interesting there is a new theory at work here which is that the innovation ecosystem of the

united states is our great either asset and that in this case because there was so much overlap between broadcom and qualcomm, you were likely to see some shut down of r&d and that would leave the u.s. as that much more of a disadvantage vis-a-vis a third party huawei that is the other sort of leading edge ever innovation activity. >> i guess the lines are not clear here because we're talking about china and obviously as michelle pointed out, there is no direct line to china expect for the fact that broadcom does business with china so if it becomes a u.s. company, how exactly do we lose any sort of edge when it comes to emerging technology? >> this is why this was a fascinating move and shows that there is a whole new world when it comes to enforcement in the national security concerns in the united states. they gave really two reasons why they had national security concerns one was more traditional

supply chain we want to make sure chips are made inside the united states because we rely on them when it comes to cyber security and for our innovation in areas like the internet of things but secondly, they in this case said if broad com acquires qualcomm based on the reasons for the deal, that we think that there will be less money going to research and development and it is imperative for the national securities of the united states that we beat huawei specifically in china in the race to 5 ghchlt i thi g i think there are concerns when the race to artificial intelligence i've seen this concern time after time over the last year. but this is a dramatic instance of the president himself for only the fifth time using the authority to block a deal. >> and the chinese have been explicit about their desire to

be dominant in the chip sector, right? >> who doesn't want to be dominant in tomorrow's most exciting highest capitalization growth industry? of course china wants that the united states wants that others would like to be part of the winning value production chain in the world as well so the tricky part here is to try to separate out the normal economic competent nation ition good from the national security issues that might not be >> unlike the united states where in theory we don't have messages from the top that we'll support this industry, this industry, though you could argue that now, china has 30 years ago was more going to be manufacturer, now we'll be this. they are so directed in what their political lending will be about. >> there used to be a research community in the united states, economists in d.c., who would be standing up screaming bloody murder right now that in was too much of an intrusion in the marketplace. but the reality is that there is so much government money in the chinese economy and not least in the highest technology sectors,

if that doesn't work out well, if the politicization of investment in china turns out to be a mistake, anybody who has a giant piece of chinese investment in their system will be subject to a down side risk as well. so that is part of what is going on here i think. >> how much of this decision do you think emanated from the sif yus process and how many emmalted from the presideemmalt emnated from the president himself? >> we've seen in deal of a dealer that they are very concerned about areas in technology where they see china have a strategic plan to either buy or in some cases steal their way into wing an industry. and what you are seeing with this block is that cybersecurity is national security so that while you might normally think about it about military weapons or in the nuclear field, this is a clear statement we are

concerned about america's ability to be secure if we don't win the race for new technology in cybersecurity and i think that is annimating lot of concerns we've seen >> all right, gentlemen, good discussion appreciate it. first brexit and now rex-it. the president dumps rex tillerson as secretary of state. and the president still hasn't replaced the last big name to leave his administration could ralarry kudlow be the replacement for gary cohn? we're following all the personnel me moves at the white house. eyomfa a fioth ce stndurus if we took legendary... and made it liberating. we took safe... and made it daring. we took intelligent, and made it utterly irresistible. we took the most advanced e-class ever... and made the most exciting e-class ever. the 2018 e-class coupe and sedan.

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. lear here is update. we begin if n. washington where 7 thur 7,000 pairs of shoes are outside the u.s. capitol they represent children killed by gun violence since sandy hook the organizers say they want to bring the call for gun control to the doorstep of congress. the shoes will then be donated

palestinian prime minister surviving an attack in gaza after a roadside bomb struck his convoy he was unarmed he went on to a long awaited sewage for jekproject. small business optimism has reached its highest level. analysts say due to new tax cuts and deregulations. and kirk cousins wants to take his talents to minnesota he is expected to sign a fully guaranteed three year $84 million contract that would make him the highest paid quarterback in the league good luck. that is the news update this hour i'll send it back to you >> thanks sue. so the removal of rex tillerson not the only big news. we will hear from tillerson in the next hour, he will speak at the state department

always the white house blocking the broadcom/qualcomm deal and president trump weighing in on larry kudlow's chances of becoming his top economic adviser. >> larry has been a friend of mine for a long time he backed me very early in the campaign i think he was one of my original backers he is a very, very talented man. a good man and i think larry kudlow has a good chance. >> joining us is former white house deputy recent secretary tony fratto. and also a reporter with the hi hill welcome. we're expecting to hear from secretary tillerson. melanie, there is this article in "vanity fair" where he reported the president wanted a total reset. he wanted a whole revamp of staff. is tillerson just the first of a couple more things that we'll see in the next couple days? >> yeah, i think everyone in washington is sort of just waiting for the next shoe to

drop is it going to be jeff sessions? is it going to be hr mcmaster? and look from my percperch, this really does not sit well with republicans and democrats alike. the president said he thrives off this sort of unpredictability and chaos, but they don't feel the same way and now you're also putting another thing on lawmakers' plates when it comes to having a confirmation process for not one, but two more of trump's nominations. they have a two week break coming up. so this really just adding to the sense of chaos and instability at the white house and raising concerns about whether the operations are sort of slipping to those early days when we saw really uncontrolled operations >> and tony, we're showing a live picture of the staft department as we await rex tillerson. >> nell melanie, what do they so you privately? >> i've had republicans on the record especially after gary cohn's departure saying this is terrible for the presidency and expressing a lot of concern about what this means for future trade negotiations, what this

means for their relationship with the white house they do not see this as a benefit. they say we operate small congressional offices of our own, we need the stability that the white house is not giving us and it is just like its own reality show, who will be fired next, who is in, who is out. who is up, who is down and it is very hard for some of these lawmakers to navigate. >> at the same time, tony, if you take a look at what the white house has accomplished and you take a look at what is going on within the ranks of the white house, do the two jive is this picture of chaos, does that accurately reflect what the president has accomplished off of his agenda? >> clearly he has actually been ability to address the things on his agenda to varying degrees of success. obviously the tax cut was a very big success. and gary cohn had a big hand in that as well he's had varying degrees of success on some of his other initiatives. certainly regulations, a little less on immigration and the

wall we don't -- the jury is out on things like the tariffs. and to melanie's point, it is hard to especially for members on the hill to have any sense of continuity in working with these guys they like rex tillerson. i think by a lot of measures he didn't have a successful run as secretary of state i don't think that is ground breaking news. but they liked working with him, they developed relationships and that stability helped them >> what do you think rex tillerson will say when he comes to the mic i mean, very classy gentleman. >> he is >> at the same time, i don't know, after being treated the way he's been treated, the guy who used to run exxonmobil, faced off putin, i don't know, does he come to the mic and finally admit he called the president a moron oi >> i doubt it. i expect he will thank the state department and appreciate the opportunity to serve

after he leaves the building, leaves the administration, i suspect that -- he is a classy person and i suspect he will handle it that way >> let's turn to larry kudlow. it would seem to me that among other things, one of attractions of larry kudlow for this white house is that larry is an extra ordinarily good communicator anybody who watches this program knows that he is a forceful, clear spoken exponent of capitalism and free market economics. >> absolutely. >> so is that one of the critical attractions to him and where do you think he comes down on the idea that some of the things that have happen in the last couple weeks have been positioned as national security concerns but others mits see them as economic nationalism >> that is such a great question look, i think on a couple points yes, we love larry

he is our friend and an extra ordina extraordinary communicator as a free markets guy, he might be fighting against the stream in that white house but with the president trump and pete like peter navarro who are more protection allism. but you don't get in these jobs to do easy things, you get into them to do the hard things on things like what happened with the bloroadcom/qualcomm, i think he would be a voice arguing on the other side that it could hurt, have a chilling effect on investment if i was going to give a caution to larry, it would be look at how gary cohn was treated on the way out where gary cohn was cut out of an important policy making process if i were larry, i would want to go in with promises that that kind of thing won't happen to him. >> promises.

right. we'll see how those work out thank you, tony. melanie, thanks so much. and from belichick and brady to forest ghump arest gump and t damp, we'll talk to a former patriot who now makes his living in the shrimp business jarvis green will talk life after football and shrimp gumbo, popcorn shrimp >> after that, slimhrimping was easy since people still needed them them shrimps, we were the only boat standing, bubba gump shrimp ♪ feel that? that's the beat of global markets, the rhythm of the world.

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here is your problem $133,000 is what you need between both of you you are making $26,000 >> oh, wow that is a big hole i didn't know it was like that

just to see the numbers and see the breakdown, it catches you off guard. that is incredible >> all of this is fixable. if you are committed and focused and disciplined. are you in >> definitely in that was a clip from a new show debuting tonight on cnbc, it is called back in the game. and you know that guy, alex rodriguez, he helps former athletes facing financial difficulties get back on their feet like joe smith former nba player that is at 10:00 p.m. eastern on cnbc now, there one athlete who lost it all, mr. smith, to another who is creating his own business empire in retirement hardly retirement for jarvis green. he won two super bowl rings with the patriots, reportedly made more than 20 million in his career called it quits. tried his hand in construction, but didn't particularly like it, so he went all forrest gump taking a six month unpaid internship at the louisiana

shrimping company peeling, cleaning, boxing shrimp. he even and a half gated b and e starting his company from cleats to crustaceans, jarvis green, welcome. nice to have you with us >> thank you very much how are y'all doing? >> we're doing great and you you are a louisiana guy. so this must have been some sense come naturally to you. shrimping sfwlp we ing shrimping. >> well, yes and no. got in the business about six years ago. a friend of mine had a lot of boats. it was vietnamese co-op. and he asked for a favor can you help me sell some shrimp and i said okay. and i'm like in louisiana? and he said no, i want you to go

back to boston i said great, but i didn't know anything about the shrimp business so that is why i started the six month internship and that is where it started >> how hard was to learn the business from the ground up? >> it was tough because i didn't know anything. i was going in blind so when i got into the internship, the first two weeks they gave me a mop and broom and i started doing that and i lived about maybe 80 miles around at the time and i remember one day my past ceo said do you really want to do this? and i said give me the broom, i'm here but it was really hard just every day going in, sometimes i had 12 hour day, 15 hour days. sometimes 18 hour days i just worked and worked and just learning and taking one step at a time >> you actually secretaryuggest people do an internship. at what point did you say you know what, this is for me, these 12 hour days, this hard work,

this is for me, this is my business >> well, i mean, when i started the internship, i was doing every two weeks to three weeks, i was doing different trade under the roof from peeling to veining, deheading, filling up the ice vats with the ice on the boats, on the docks. and then every day for so many hours i was doing the sales part of it. and each day or each week, i did more and more hours to get to that point and it was hard and i know when i started calling the different retailers around the country, you get a bunch of nos, but when i started having confidence in myself, from the first sale that is when everything went uphill, just the confidence level and doing things more firktefficien. >> what do you think about the show we have on tonight and why is it that so many big players end up after making all this money end up with nothing?

we have the show on tonight because it is such a pervasive problem. why is that? >> you know, you talk about the different statistics when a player retires from anything, two to three years bankrupt, divorced, suicide. a lot of mental problems just a lot of things i just think, you know, like with football, we get paid in 17 weeks. not the entire year. it's an aggressive sport and you make so much money it's like giving an 18-year-old, 19-year-old, even when it comes to baseball, 17-year-old kid, a lottery ticket from there, it is just damage. for me, i went through a lot of things when i played i played nine years, and i had a lot of people around me that was great influences i had some people were negative. for me, consistently, the same people that i have today on my team, like a guy like him, my agent, he passed away now, but i

had a really good team to tell me the things, the right things. a lot of times, i didn't listen. being stubborn, being hard-headed. >> real quick question parents ask you, should i let my son play football or should i push him into business what would you tell them, quick? >> i would let them play football he's young, you're a kid i mean, they have more concussions in soccer. i mean, football is a great sport. a great team sport it teaches them how to live life and being more efficient >> i'm going to get some of the oceans 97 product. thank you. appreciate it. continued good luck. >> just to remind you, back in the game is on tonight at 10:00 eastern time with j. lo's friend >> in quotes >> coming up on street talk, ge and amazon, two companies moving in different directions. plus an analyst oochses sides in the sneaker war. tim seymour will join us after this with the elevator. right. but you want to fix it. right. so who sent you?

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welcome back to "power lunch. i'm melissa lee. there's a few big stock calls from sneaker wars to ge woes with us to help break them down is fast money trader tim seymour. good to see you. >> hello, power lunch gang we want to start ge.

this is the first time this year that j pxmorgan has slashed their price target on ge >> they said asset divestitures also hit ebita they're saying the buck could be broken and this is something people should think about. all i say to that is look, put a zero earnings on this company, is the company worth zero? you don't at 50 cents make this an $11 stock in my view. >> long ge >> i am long ge. >> underwater? >> i own the stock for about $20. it's a seven basis point position this is not a place you go to bank eps right now is not how i'm valuing this company intrinlst value, $130 billion market cap it could go lower. >> amazon getting a price hike they make the point it's not stealing necessarily from facebook, and the others, or google it's taking from the offline, which was interesting. >> it's going to help their margin ultimately, the advertisers see the direct tie-ins on the brand

side amazon is doing everything right. i also think if they get grocery right, and obviously, whole foods and the whole space they're in now, if they get that right, major halo affect for the entire crowd some people think they'll be near a trillion in sales by the end of this decade i think they probably will be. >> last call, credit suisse initiating coverage on a few names. nike outperforming under armhour. i know where you stand because i know you're long nike >> under armour, as much as there's a turnaround story, stock is still not cheap a lot of margin pressure in the second half of the year. there's still some things to improve in terms of the management cohesiveness. kevin plank, great passionate leader, but there's other leaders there. nike, the international mix, 55%. very exciting. gross margins are what under m armour does not have that to me means these guys deserve roughly a 5 or 6 turn premium to their peers they have that, they deserve it.

>> tim, thank you. i'll see you tonight >> president trump blocking the biggest tech takeover plan ever because of national security fears. what does it mean for the chip sector that's where the deal was supposed to happen, and which stocks could be the next takeover targets >> plus, rex tillerson set to speak any moment now this is a live view from the state department briefing room we'll carry it live when h eaks don't move and the wolf huffed and puffed...

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breaking news. rex tillerson set to speak momentarily after being ousted as secretary of state this morning via twitter. this is a live picture from the state department briefing room where we expect to see him any time ben white of politico has joined us on the set. another day, another departure >> a couple departures not just tillerson, but his spokesperson yeah, it's not exactly all smooth sailing in the trump administration >> what are you hearing about how this went down >> well, there are conflicting reports about how it went down obviously, the white house line on it first was that tillerson had been informed at the end of last week, friday, conversations had been had he knew this was coming.

and he would be out of there on monday of course, the spokesman comes out and says, no, that's not the case he was informed basically today on the plane, on the return trip from africa, and it was a great surprise to him. he doesn't know why he was being fired. it's not clear which of those two things is true at this point, but the white house was so dispolileased - >> maybe there are alternative realities or alternative facts here >> there could be alternative facts. i tend to believe perhaps this was the last words of a spokesman who knew he was on the way out and said i'm going to tell the truth, and this is what happened i know i'm going to get canned i probably would have been leaving anyway with the new regime that's my guess as to what happened you can talk to eight different people and get eight different stories. >> let's speak to someone else right now, eamon javers. >> let me give you a ninth different story. ben points out rightly the aide who gave the statement that appeared to contradict the white house line was immediately fired by the white house right after the statement came out so there seems to be an effort

to rein some people in, discipline some people i think this is going to be an absolutely fascinating press briefing by rex tillerson. if we see him come to the podium in the next few minutes, he's entirely unconstrained he doesn't need future employ; he doesn't need a future connection with the white house, because of his financial situation. he can say anything he wants at that podium right now. and we'll see a very free, soon to be former secretary of state. >> he's a very dignified gentleman, based on all exposures i have had, not personally, but in observing him. eamon, who is the other white house -- i hesitate to use the word official, but employee who departed today or yesterday? >> well, that's the president's body man, john mcentee, who departed today there's been reports in various media outlets he was escorted off the campus here. the white house will not say

anything about why exactly he left the body man, to be clear, is the person who spends an enormous amount of time with the president of the united states he has an office right near the president's office he travels with him, he's within arm's length at nearly all times on the road, doing things as small as handing him pure elfor his hands, as large as running interference about which aides can physically approach the president and talk to him while they're traveling. it's a near constant communications job with the president, and with the world around him and that is a person who becomes very close to the president of the united states. we're told that mcentee has left the white house, but we're not really given any explanation about what it is that alarmed people to such a degree that his exit was made to be this hasty so we'll wait and see whether the white house provides any answers to that. it doesn't appear to have anything to do with the rex tillerson firing, which was long in the works, and of course, the trouble there started back when it was reported rex tillerson had called the president of the united states a moron, and then the secretary of state declined to deny that he had called the

president a moron. so we had several months of rex tillerson being asked about that and simply saying i don't want to dig nigh that question with an answer. and i think that got under the nerves of some people here at the white house including the president of the united states the president, for his part, said today he simply didn't see eye to eye with rex tillerson on issues such as the iran nuclear deal, and that's why he wanted to bring in mike pompeo, someone he has a better rapport with, and deals with every day in person when he gives him the daily intelligence brief the intelligence secrets of the administration delivered almost every morning. that's a relationship that the president feels like he wants to lean on more extensively than rex tillerson. >> i want to bring in john harwood now. we had a guest on earlier say that rex tillerson didn't fit into the washington culture. he didn't get the collaborative decision making process. he wanted a line of authority that he was accustomed to in the corporate world. was this maybe a good idea to fire rex tillerson

>> well, the state department was a mess there's no doubt about that. and he was trying to reorganize things, and jobs were not being filled people, career ambassadors were leaving. but i'm not sure i would place that on rex tillerson as much as the president of the united states this isn't happening in isolation. the president's chief economic adviser has now left his fourth communications director has left. his personal assistant has left today. his staff secretary was fired after the revelation of domestic abuse allegations that other aides had covered up this is a dysfunctional and chaotic administration across the board. and so rex tillerson, yes, is of a peace with that, but it's not limited to him >> we're showing this board of all these people who have left we're going to run out of room here, have to make the photos smaller. >> have to take them down in size >> can i jump in on that point real quick

>> sure. >> john rightly talks about this issue, but i want to emphasize a lot of people who resigned are still working in the building today. as far as we know, hope hicks is still in the building. gary cohn is still in the building i saw the communications aide who resigned a couple weeks ago this morning he's still in the building row have this weird thing where you have a bunch of empty chairs of people who have been forced out of the jobs and then you have a bunch of lame ducks who have resigned but are still working here that creates a really eerie dynamic for the staffers trying to navigate all this and figure out who is up, who is down >> spicer's not there, right spicer's gone? >> spicer did lurk around the white house for a long time after he officially stepped down at the white house at the podium we saw him here constantly for about a month, where want to say, after he was fired. they resign but don't go entirely away for a while. >> let me bring in sara fagen. >> let's not forget. let me make one quick point. we have a special counsel who is investigating people working in

the white house, including jared kushner, the president's son-in-law, and the president himself. they're talking about an interview. so there is -- there's a whole other layer of problems we haven't even gotten to >> sara fagen, let me ask you, welcome, number one, the president i believe today said something to the effect of, or maybe a direct quote, that he's getting close, he said, to achieving the cabinet that he wants. that could tell you one thing. he's getting close, but that could also imply there are more changes that are imminent. is that what you expect? >> well, just given the track record here, you would have to expect that some folks may leave because of the chaos he may replace them because the one thing about donald trump that has become clear in his short time in office is you have to agree with him. you know, this is not abraham lincoln time of rivals this is, you know, i have a viewpoint and you need to toe the line and you know, that has not worked for rex tillerson

and you know, so in many respects, he wasn't working as secretary of state it's probably a good thing that he's leaving, for his sake and for the president's. >> to follow up on melissa's question earlier, it's a good one. i mean, if you don't agree with the president's foreign policy, and it's pretty clear he didn't, then maybe he shouldn't be the secretary of state >> well, they're very different. i mean, their views were different on almost every issue. including the fact that the president would go out and agree to meet with kim jong-un and not consult his secretary of state i mean, that is a stunning, stunning revelation. >> ben, you know, you look at the list of people who would be the obvious ones to seem to be -- to have collided with the president. mr. sessions, the attorney general. mr. mcmaster, mr. carson has apparently said that running hud is harder than doing brain surgery. maybe he's -- you know, so the list of potential turnover is high >> it's really high. and a couple of things off what

sara said. it's true, it's difficult in this administration if you disagree with the president. gary cohn experienced that on trade, but he was able to stand up and say these are my different views on protectionism. we shouldn't do these tariffs. that's where we should give trump some credit for considering larry kudlow he does strongly disagree with him on those issues. we saw the president leaving for california saying i want there to be different opinions on the issue. on the tillerson front, it was probably long time for him to go disagreed on iran, on north korea. as with everything else in the trump administration, it's how it's being done. the fact there are two stories about how this happened. trump didn't want to confront him earlier and say this isn't going to work out. you should move on he's weirdly reluct chbt to fire people, even when they strongly disagree with him. sessions is a good example >> even though he did it on television as a job. >> on the tillerson thing, there was a right way and a wrong way.

>> sara, what are you hearing about larry kudlow >> i hope he picks him i think it's a great choice. one of the things i think would be great about larry serving in the white house, in addition to having different views, which ben points out, than the president on trade, he has the respect of the conservative movement, which is something that gary cohn didn't have by virtue of being a goldman sachs employee and a wall street insider. larry has been in the trenches with folks so i think his voice will be given a different level of credibility than gary cohn's not to take anything away from gary it's just a different perspective and a different history. i think that could be very productive for people with pro-business views in this country. >> so cohn saying i don't like tariffs will be different in the president's ears than larry saying i don't like tariffs? >> i would put it a little differently. i think that the staff, you know, that took shots at gary or steve mnuchin, who said you're not one of us. you're a wall street insider

you're not a real conservative they can't say that about larry kudlow and so i think that he perhaps would have a better -- well, that's true, but that's true, but i think it's a cultural thing as well as an ideology issue. i think larry could do well with working with the other staff better than perhaps some of these other individuals did. >> we have rex tillerson approaching the podium let's listen >> i received a call today from the president of the united states a little after noon time from air force one and i have also spoken to white house chief of staff kelly to insure we have clarity as to the days ahead what is most important is to insure an orderly and smooth transition during a time that the country continues to face significant policy and national security challenges. as such, effective at the end of the day, i'm delegating all responsibilities of the office of the secretary to deputy

secretary of state sullivan. my commission as secretary of state will terminate at midnight march 31st between now and then, i'll address a few administrative matters related to my departure, and work towards a smooth and orderly transition for secretary of state designate mime pompeo i'm encouraging my policy planning team and undersecretaries and assistant secretaries, those confirmed, as well as those in acting positions, to remain at their post and continue our mission at the state department in working with the interagency process i will be meeting members of my front office team and policy planning later today to thank them for their service they have been extraordinarily dedicated to our mission, which includes promoting values that i view as being very important

for the safety and security of our state department personnel, accountability, which means treating each other with honestly and integrity, and respect for one another. most recently, in particular, to address challenges of sexual harassment within the department i want to speak now to my state department colleagues and to our interagency colleagues and partners at dod and the joint chief of staff, most particularly to my foreign service officers and civil service colleagues, we all took the same oath of office whether you're career employee or political appointee, we're all bound by that common commitment to support and defend the constitution, to bear true faith and allegiance to the same and to faithfully discharge the duties of our office as a state department, we're bound together by that oath.

we remain steadfast here in washington and at posts across the world. many of whom are in dangerous situations without their families the world needs selfless leaders like these ready to work with long-standing allies, new emerging partners and allies who now many are struggling as democracies and in some cases are dealing with human tragedy, crisis, and natural disasters, literally crawling themselves out of those circumstances. these are experiences that no lecture hall in an academic environment or a think tank can teach you. only by people going to the front lines to serve can they develop this kind of talent. to the men and women in uniform, i'm told for the first time in most people's memory that the department of state and the department of defense have a close working relationship where

we all agree the u.s. leadership starts with diplomacy. the men and women in uniform at the department of defense under the leadership of secretary mattis and general dunford protect us as americans and our way of life daily, at home and abroad as in all voluntary military, they do it for love of country, they do it for you, and they do it for me. and for no other reason. as americans, we're all eternally grateful to each of them, and we honor their sacrifices the rewarding part of having leadership and partnerships in place is that you can actually get some things done and i want to give recognition to the state department and our partners for a few of their accomplishments under this administration first, working with allies, we exceeded the expectations of

almost everyone with the dprk maximum pressure campaign. with the announcement on my very first trip as secretary of state to the region that the arab strategic patience was over and we commenced the steps to dramatically increase not just the scope but the effectiveness of the sanctions the department undertook a global campaign to bring partners and allies onboard in every country around the world with every mission raising this to the highest levels and at every meeting i had throughout the year, this has been on the agenda to discuss. the adoption of the south asia strategy, with the conditions-based military plan as a tool to compel the taliban to reconciliation and peace talks with the afghan government finally equipped our military planners with a strategy which they can execute as opposed to a succession of 16 one-year strategies this clear military commitment

attracted the support of allies broadly, and equipped our diplomats with a whole new level of certainty around how to prepare for the peace talks and achieve the final objectives in other areas where progress has been made, much work remains. in syria, we did achieve important cease-fires and stabilizations which we know has saved thousands of lives there's more to be done in syria, particularly with respect to achieving the peace, as well as stabilizing iraq and seeing a healthy government installed and more broadly in the entire global campaign to defeat isis nothing is possible without allies and partners, though. much work remains to establish a clear view of the nature of our future relationship with china how should we deal with one another over the next 50 years and insure a period of prosperity for all of our

peoples, free of conflict between two very powerful nations. and much work remains to respond to the troubling behavior and actions on the part of the russian government russia must assess carefully as to how its actions are in the best interest of the russian people and of the world more broadly. continuing on their current trajectory is likely to lead to greater isolation on their part. the situation which is not in anyone's interest. so my colleagues in the state department and the interagency, much needs to be done to achieve our mission on behalf of the american people, with allies and with partners. i close by thanking all for the privilege of serving beside you for the last 14 months importantly, to the 300 plus million americans, thank you for your devotion to a free and open society. to acts of kindness towards one

another. to honesty and the quiet hard work that you do every day to support this government with your tax dollars all of us, we know, want to leave this place as a better place for the next generation. i'll now return to private life, as a private citizen, as a proud american, proud of the opportunity i had to serve my country. god bless all of you god bless the american people. god bless america. >> and that was rex tillerson, the outgoing secretary of state. making his statement from the state department briefing room, taking no questions there. regarding the timeline of how he was fired, what manner he was fired, he said he received a phone call around noon from the president from air force one that was hours after the president tweeted that rex tillerson was out. he said wi the end of the day, he'll delegate all of the responsibilities to the deputy

secretary of state, but will remain on the job through march 31st, midnight march 31st, to insure a smooth transition to secretary of state designate mime pa mike pompeo. he also sounded a little rushed or shaken. >> what was his opening statement? i received a phone call a little after noon, as if to say, let me be very clear about what happened today and what the narrative is you may have fired my number two for suggesting that it was otherwise, but the facts are that i learned via twitter, basically, that i was losing my job. >> yeah, he heard from the president after the news had broken some time earlier this morning on a call from air force one. >> and he also went through great pains to say -- i mean, there's been a lot of people really being very critical of rex tillerson today, and he went through great pains to say what he thought were some of the achievements, including the pressure on north korea.

dprk is their acroinism for their country, we call them north korea. the maximum pressure campaign, which was a very different attitude than what the obama administration had done and also the bush administration. strategic patience, waiting them out, and instead going after them with much tougher sanctions than we had ever seen before and you could argue, where we are today with north korea is because of that. >> is a result of some of the pressure that has been applied and a different rhetoric not merely the squeezing of sanctions and the tightening of sanctions. but a rhetorical stance that is -- i mean, there president is a counterpuncher, if nothing else when you punch at him, he punches back >> this was clearly tillerson punching back a little bit at president donald trump and doing its, as you previewed, in a fairly classy way. he didn't go directly after him. he didn't bring up the moron comments, but the failure to drank them directly was one piece. another piece, he brought up russia, talked about the need to get tougher on russia and what

the state department is doing in that regard. that's a source of tension between the state department and the west wing. russia, as we know, is a very sensitive topic. what you saw here is rex tillerson taking some shot alt president tt donald trump who h never got along with >> eamon, what did you think >> i want to pick up on ben's point about russia that jumped out to me as well. my notes said he said much work remains to explain the troubling behavior and actions on the part of the russian government. he explained the russians are being meddlesome to the united states, and also going through a list of the unfinished business around the world, including afghanistan and syria, and north korea, highlighting the fact that there's so much work left to do. a lot of work here for his deputy, who will come in and take over the job. i agree with the take that he seemed, if not rushed, maybe emotional. and very, very controlled. this seemed like a man who was controlling every word that he said and parsing it out very

carefully. and you noted he didn't take any questions in the state department press briefing room from the press who were gathered there who have a lot of questions to ask of him. >> john harwood, maggie haberman reporting more changes are expected, including mcmaster, and saying that among replacements, tillerson had expressed concerned about working with john bolton >> right and look, there's going to be aside from henry mcmaster, we don't know how long john kelly will stay at his job we don't know who else will leave. i want to echo my colleagues rex tillerson was both classy and pointed. he justifiably claimed credit for some success with squeezing north korea. but in addition to warning russia and pointedly putting that on the table, he also talked about the american people's regard for open government, for kindness, for honesty, all of those were things for which he did not

praise president trump he did not praise president trump's leadership i think on a day later than today, we will hear more from rex tillerson. but i think his silence about the president spoke volumes. >> yeah, sara, the only time he mentioned the president is when he said the president gave him a phone call from air force one, not the typical playbook for an outgoing cabinet member to not thank the president of the united states for the opportunity to serve >> it's really unusual and only a few times in history has that happened. i agree with john that we will be hearing much more from rex tillerson. this is a person of great accomplishment who can't feel great about his experience in the trump administration and this will not be the last word from him. >> there will be a time for this no one expects mr. pompeo to have any trouble getting confirmed, correct >> no. >> no one? >> no, he's been confirmed previously by large numbers. >> no reason there

>> will they allow it to happen. it's been delay tactic after delay tactic >> it's a great question so i don't think he'll have a problem with his colleagues. but you know, if you consider what's going on relative to russia, what happened, as the british government came out very aggressively against russia yesterday, you could see democrats trying to stall this mitch mcconnell, of course, has the votes to do it, but boy, if this stretched into the fall and we got into election season, it could be a different story >> i would think - >> he will be put through the paces in that confirmation process. >> i agree with that, john >> i expect he will be confirmed, butt rr not going to be easy. >> there will be a lot of questions for mr. pompeo, particularly given all of the moving parts in the world, most particularly and upcoming summit presumably between the north korean leader and the president. folks, thank you very much we appreciate it >> what an afternoon so what will this shakeup at the state department mean for u.s. foreign policy

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outgoing secretary of state rex tillerson speaking moments ago, and thanking his team and his office >> i will be meeting with members of my front office team and policy planning later today to thank them for their service. they have been extraordinarily dedicated to our mission, which includes promoting values that i view as being very important for the safety and security of our state department personnel, accountability, which means treating each other with honesty and integrity, and respect for one another. >> with us now is fred kemp, ceo and president of the atlantam council. he did not thank the president there, fred, as we have highlighted in our previous segment. as he listed those qualities that he thought should be part of the state department, it almost felt like it was a veiled criticism of the president am i reading too much into it in. >> no, i don't think you are he's such a gentleman, and he's

such a man of character that he would never openly criticize the president. but he's certainly been shocked by the way this came down. you have to figure out whether you believe the white house version of events, which is on friday, he already knew about this, or the state department version of events, which he didn't have a phone call and he learned about it on twitter, and the phone call came at noon. however it unfolded, i think that secretary tillerson felt he had passed through the worst, that he had found a good place the president. but it reminds you you're sort of at the pleasure of the pledz. at this case, the president decided he wanted to pull the plug >> here's the thing, if he didn't agree with the president on a lot of things, should he really be in the position, as good a guy as he is, as class as as he is, as much as people liked him, et cetera ultimately, you serve at the behest of the leader of the country.

it was clear they didn't see eye to eye on many things. >> i agree with that i think on the global stage, what your allies and even your adversaries want to know is when they speak for the secretary of state, he speaks for the president. with john kerry and president obama, that wasn't always clear. with condi rice and george w. bush, it was always clear. and with pompeo and president trump, i think it will also be always clear so that's the upside to it the downside, and i think this is the most important thing for your viewers, business people, particularly, is that the internationalists are eroding as a wing in the white house, with gary cohn's departure, and now with tillerson and also the very important partnership of secretary mattis, defense secretary mattis and secretary of state tillerson they were very close, and they brought their two institutions

close. they were more those that looked for carve-outs in the tariffs so that allies and friends and security interests wouldn't be hurt and i think that partnership is going to be lost i think there's going to be a little more of a swing to the nationalist from the internationalist >> do you think that the protectionist/nationalist agenda has gained ground with mike pompeo replacing tillerson at state? >> i don't know enough about pompeo's views on these. he was a good congressman. he's hugely respected at cia the people there like him. he was a leader of the cia agents and people, and he's gained a lot of respect there. what is clear is with cohn's departure, that you're going to have people like lighthizer and wilbur ross and to a certain extent steve mnuchin, good professional people, but much more on the wing that thinks we have been wrong done on our trade deals and that has to be addressed. i think that's important, particularly, as we go forward

with china, the president's broad com decision today, but there are also decisions on the wings regarding 301 trade actions regarding the chinese that could come forward in the next few weeks >> am i right in assuming one of the ways mr. pompeo will be different from mr. tillerson is that he is more comfortable in front of the camera? he was a politician. he's an attorney harvard educated and mr. tillerson was a private businessman who kept sort of his own counsel. is that part of the reason he and mr. -- mr. pomp peyo and the president may be symbiotic in a way, because the president likes people who are good on tv. >> he likes people he's very comfortable with he was comfortable with secretary tillerson in the early days they spent a lot of time out to dinner together. they were the two bachelors in washington, both their wives were living elsewhere. similar ages leaders in business. but that relationship began to

erode, i think, really around the iran disagreements they had. with pompeo, he's definitely more of a television personality. very comfortable in front of the screen that does mean something to the president of the united states it was not the game that secretary tillerson liked to play his undersecretary for media affairs, steve goldstein, got him more comfortable with that in the last while. and he is actually really good at it, but it was never the role he wanted to play. and mike pompeo does play that role easily. >> what are you hearing about larry kudlow potentially taking over for gary cohn >> you know, i heard what the president said sounded like an endorsement to me and certainly the president's very comfortable with him. and there's another person who seems to know how to be in front of a camera. so i think that would be probably a very good thing after gary cohn leaving and the president seems to have the confidence of the president, which i think in this next round of appointments, the president says i'm going to get the

cabinet i want now that means somebody else is going. who knows what that is, but even some cabinet level, he's going to get more and more people he feels comfortable with >> thank you, fred ceo and president of the atlantic council >> we were showing you shots of the president landing in san diego just moments after outgoing secretary of state rex tillerson made his statement to the press from the state department briefing room the president is there, of course, to take a look at prototypes for a border wall >> energy investors long anticipating an ipo from the oil giant at saudi aramco, but new reports indicate they may have longer to wait welcome. good to have you here. >> thank you it's looking increasingly likely, this ipo will be delayed to 2019. in saudi arabia, a 5% sale on saudi aramco they were keen to get 10s of billions of dollars to move it away from oil revenues, but questions about preparedness dog

this ipo, how they're going to list, where they will list whether it's new york, london, whether hong kong is in the running still. when you look at what is happening in the saudi power structure, we're a few days away from the visit of the crown prince, coming for the first time to the united states as heir to the throne he's going to face a lot more questions about the move toward nuclear energy and what that means in terms of bypassing potentially the 123 agreement so saudi arabia would be able to, essentially, create their own nuclear fuel a lot of questions about that. also, a lot of questions about whether or not this would go to a private listing. would this involve russia and china, which have become much bigger partners to saudi arabia in the last few months for the white house, what do they have to lose? >> one senior oil executive said to me once he doubted that aramco could ever go public because -- and he did this, because the balance sheet of the country and the company are -- >> the same, correct >> fused >> yes, indeed that's something that these

advisers to the company have long been struggling with, trying to get the $2 trillion valuation as the thing he was looking for. at that time, he was like, a trillion, $2 trillion, could be $3 trillion, we don't know, but it's going to be good. there were questions in the room that day and still today >> one might be curious why saudi arabia, which is on such a wealth of oil, would be interested in developing nuclear power. the same could be asked of iran, which sits on the largest gas reserves, i believe, in the middle east. why do they want nuclear power >> excellent questions if you talk to the saudi ministers, they want to go to green energy they're talking about $88 billion in the next decade, but when you talk about 123, this is interesting. if they want to process their own nuclear fuel, they could go to pakistan, to the russians they don't have to go to the united states. i think this speaks to their need and wish to get in bed further with u.s. corporates because if they're going to use u.s. corporations to do this

work in saudi arabia, that means u.s. corporates as well as the u.s. government will be invested in saudi arabia over the long term >> for a long time, there had been thinking there would be a floor under the price of oil until saudi aramco goes public later in 2018. now that that moves to 2019, what's the take on whether the floor is temporarily removed or if it remains intact through 2019 >> that's a good question. what i thought was interesting was to hear from the iranian and saudi oil ministers. the saudis saying $70 is the right price. this plays into the broader questions over the foreign policy of these two countries and the saudi versus iran narrative, and what we're seeing lately, particularly in iraq, saudi arabia is buying influence. they want oil prices higher, not just for saudi vision 2030, but where they can use the extra money and cash later it looks as if they want to buy that influence in the region >> thank you very much appreciate it. good to have you in the house. >> sue herera, cnbc headlines. >> hello, ty here's whautsdz happening at this hour.

prosecutors say they intend to seek the death penalty for nikolas cruz, who was charged with killing 17 people in the parkland high school shooting. his lawyer had said he would plead guilty if the death penalty was taken off the table. a group of bipartisan senators are urging congress to pass the stop school violence act of 2018. that bill would help fund programs that train law enforcement, teachers, and students to look for warning signs to prevent violence. >> after 9/11, we secured our skies. it's time now that we secure our schools. we must rally together here, republicans and democrats, and senator rubio read off that long list of bipartisan cosponsors on the bill >> punches were thrown after the turkish parliament passed a controversial voting law the opposition claiming the changes could open the door to fraud and jeopardize the fairness of upcoming elections

>> looks like more than punches were thrown. that's the cnbc news update at this hour. back to you. >> tough business. thanks, sue. the administration squashing bro broadcom's bid for qualcomm. it doesn't mean they're done with their acquisition spree, does it? we'll lookhoou b w clde the next takeover target straight ahead on "power lunch. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute.

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president trump signing an order to squash broadcom's acquisition of qualcomm. broadcom set its scythes on acquiring a different company, or does it mean it's off limits for the chip maker all together. joining us now, romit shah from nomura great to have you with us. based on the president's actions, what would you expect to happen in the chip space or maybe not to happen in the chip space when it comes to m&a >> well, you know, given what's happened in the last 24 hours, i think there's a good chance that broadcom focuses more on capital return in terms of buybacks and maybe raising their dividend it's been a total shock to see

them in november be invited into the oval office, celebrate the fact that they're redomiciling to the u.s., and then today find out that, you know, they're being sort of framed as a national security threat so i do think they have the ability to do m&a, but this is now a $20 billion company in terms of revenue so to find something of scale and significance that could move the needle for them, i think it's going to be tough being under the microscope of the u.s. government >> you know broadcom's business very, very well. based on what you know of it, do you see a national security risk can you understand the concerns outlined by the president's letter >> i don't i mean, i think there was concern that they would -- well, if you look back at sort of the history of this company, particularly over the last three to four years, they have had tremendous success in generating

shareholder value through merger integration and cost cuts. and i think there was a deep concern that by acquiring qualcomm, they would pull back on investments, particularly in 5g now, ironically, i feel like that was the area where they were going to spend money. it was the other areas where qualcomm was investing, in automotives and servers. those were segments at risk. >> there's been a ton of consolidation in this industry, clearly, the players think they need scale one of the big buyers is gone. so part of the takeover premium is removed i'm assuming they're going to wait before they try again here, considering what they heard from the government but does this give the intels of the world or somebody else the ability to come in and actually buy some stuff what could get bought by who now if the economies of scale are still what's needed? >> yeah, you know, there was discussion late last week that intel could come in over the

top. i didn't believe that. i didn't believe that rumor. the company that people aren't really talking about as a potential acquirer is qualcomm and you know, if you thing about qualcomm, they've been trying -- you know, trying to diversify their chip set business, move a little bit away from licensing they bought nxdi, they're about to close on that transaction if that's successful, i could see qualcomm being out there in the marketplace, trying to replicate that and buying businesses that not only boost earnings but also diversify their business outside of wireless >> such as what businesses what could be targets? >> if you look at some of the comparables to nxti, you know, i think investors are going to think about companies like xilinx or analog devices or microchip. these are broadbased businesses

that are very profitable and you know, could be synergistic. i obviously have no idea what they're thinking about, but these are companies that are similar to a company they're about to acquire, which is nxti. >> we're going to leave it there. thanks for phoning in. always appreciate it >> on a down day for stocks, major retailers on the rise. should you bet on brick and mortar retail? there's some names in the green. we'll debate straight ahead on "power lchun." 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.

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>> we should have dick's higher by 1.5%. we have details. >> the holiday dwaquarter in general mixed. weaker revenue those issues have been fixed several times in fact. and strong growth the rae tailer

from nike and taylor made and it's carrieunder it's wood's line will be strong. also discussed the earnings call nishlgly saying it is tee early to see the impact. as the call went on it got a little more shore. it is from some of the changes saying we made them two weeks ago. it was a negative but we have been surprised by the outpowering of support >> dick's mentioned there was ir rational behaivior and they were going to fight it. you're saying margins are okay this time. >> dick's said their private labels, these are the brands you can only buy at dick's more than

double digit growth there way out it outperforming. though promotions were high. those margins were low the sales were strong that it brought the margins up cht. >> okay. thanks >> you got it. >> time now for trading nation let's stick with things like macy's and nordstrom we are with strategic wealth partners what's your outlook for retail >> we already believe the consumer discretionary factor will come under quite a bit of pressure given the fact we are seeing consumer debt levels increasing macy's is trade and will lure investors in they have no pricing power their business is built on

heavily diskountdcounted items. adds in higher fixed costs and what you have is a dangerous business model it translatesthroughout all brick and mortar retail. the one exception is nordstrom duo like nordstrom it has a reputation for high level service and experience that translates and builds quite a bit of loyalty it has done a great gap with their robust app and they have a free shipping and returns policy >> and i hope over the weekend they have listened to tyler and they will have a store wide liquor license in the manhattan store. >> serving manhattans. >> what do you think of retail here >> it is interesting i agree with mark. on a technical basis you look at the way the group bounced back you look at the xrt and it saw

decent bounce back he got up to the 50 day moving average. it has been bumping up against that it hasn't been able to break a budget i like this stock as well. on technical basis if you're looking for a stock you'll follow macy's or you're looking at a stock that is starting to break out. you can see it is bumping up against the trend line going up to the 2015 highs. it is slight lig aboly above it. it can help to play catch up for some of the other things i agree. that's the one you want to look at >> thanks so much of for more head to our web site at trading nation dot cnbc.com. check please is next

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rjs welco welcome back they rorgtd trump wants steeper t tariffs. apantly last week they presented a package of tariffs the we give leapt of 30 billion a year of chinese imports. he told president trump to go for a bigger they are quoting two people involved in the administration trade deliberations. earlier head dpts line crossing to the effect in terms of bigger tariffs. this is the technology sector. ip is technology you have to wonder if it clangs the rules of the game for u.s. companies doing business in china. i'm not going to draw any conclusions or comparisons here but the nasdaq is under pressure nasdaq under the most pressure we have apple and amazon that reversed we also have the chip stocks

making new highs earlier in the session. some will say they are simply overstretched. others will say there's a lot of uncertainty. >> and someone mentioned that the ranks of the economic nationalists in the trump administration seem to be asen dent and the globalists seem to be on the way up calls into question larry cutler who has been an opponent of tariffs, whether this message would be something that larry would be presumably comfortable with cht who knows >> he has been on the saying do targeted tariffs on china. if you want to give president trump the credit for being sly like a fox perhaps some could argue he terrified everybody

blanket tariffs on everyone. >> and now he negotiates back. >> and paul ryan is willing to say suddenly okay. okay and a way to get to middle ground >> you git the technical point here >> thanks. >> closing bell starts right now. live from the new york stock exchange this is the closing bell i'm kelly eveans. >> we'll be live to see if trump makes any excellents in light of all of the changes at the white house off just today we begin with the markets. everyone is a little bit lower we are on the