>> north korea is a bad actor and russia and china is a bad actor. it cannot be stopped they have cyber security, right? >> assume. >> thank you for being here. it is always fun >> i love this >> don't forget to catch jim tonight with "mad money. "power lunch" begins ynow. >> i am michelle caruso-cabrera. >> here is what's going on we'll go straight into the surge straight ahead sticking with strad when china runs out of things to tax, what other economic hot button it could push chinese spending that could be targets. one week left to file your taxes. what's your chance of being audited this year? "power lunch" answers that as we start right now.

>> welcome to "power lunch." i am sarah eisen the dow has moved 200 points or more nasdaq is two thi-thirds gains s year amazon and apple and microsoft and alphabet all had the biggest impact the russian stock market having its worst day in more than three years. trades here are fx are down about 10%. tyler. >> good afternoon everybody, i am tyler mathisen. cnbc uncovers new details of how your facebook data are being

used more on this are ahead deutsche rally christi christian taking over effectively. this is the second ceo for deutshche. prices at the pumps are moving up michelle >> thank you, tyler. two t to the rally, stocks are balancing back big time today. bob pisani is at the new york stocks exchange with more on what's moving stocks hard today. >> 2% down, we have a group that looks a lot like january you got your big momentum stock and you got semiconductor leading so your leader is tech

and healthcare which was not bad. energy is finally starting to polk it has been a total looser the last few days. banks are sort of up there, too but off of their highs fang stocks hitting their highs right off the gates. they held those gains. these are healthy gangs and this is why i gotyou got a nice movep so i mentioned these crazy volatile days when all of a sudden you are down 2% and up 1% traders have noticed this. look how crazy it is on friday we were down 2% and today we are up 1% april 3rd, we are down 2% and up march 26th, we were up 10% all of this and tail spinning is difficult to figure out what's going on the one thing we do have for the markets is volatility. this is making people crazy. here is what we don't have we don't have any volume on the update

volume today is terrible we don't have a lot of clear leadership groups doing anything more than a day at a time. a lot of people are saying the markets are becoming uninvestable we need quiet patterns to emerge speaking of the global markets, emerging markets, here is another one. real victim of the trade war, no energy and no volume since the middle of march been no efforts to buy this was a big leader in the year there is an early casualty right now. guys, back tow rober to you. larry kudlow appeared on cnbc earlier and president trump talking trade a short time ago, eamon javers is joining us now >> reporter: that's right, the president held a cabinet meeting here at the white house early today. he had a message directly for the agriculture sector of this country could be hard hitting chinese tariffs. here is what the president had

to say to them directly. >> during the course of a negotiation, they want to hit the farmers because they think that hits me, i would not say that's nice but i tell you our farmers are great patriots they understand that they're doing this for the country and, we'll make it up to them. the president there is saying we'll make it up to them they do indicate that they think there will be a plan for u.s. agriculture to put in place from the white house and the agriculture department if those chinese tariffs end up going into effectme all of these is theoretical at this point they have a plan for agriculture to backstop it today, larry kudlow o, on cnbc, had a clear idea on who to

blame. >> please don't blame trump. blame china. china has been the problem trump is involving himself and re reacting to the problem of american industries. china started this years ago >> larry kudlow said he was heartened by the lack of dramatic response by the chinese to the statement that the united states considering additional hundred billion dollars in tariffs last week. he said that the chinese reaction to the initial round of proposed tariffs was unsatisfactory to him that was an encouraging sign and maybe all of this could end up what he called a benign resolution we'll see if that happens. >> aeamon thank you investors e navigating a market that is bringing in hundreds of points

let's bring in our guests. mr. newman, thank you to being with us. >> thank you for having me >> whether the hypothesis is beginning to show some cracks, do you agree with that and if you do, how does that change how you are investing? >> no. i don't agree with it. we are seeing and we do a lot of proprietary research and we are finding strength in the global economy. if you look at the preannouncement season thus far for earnings, it has been the strongest ever it is been keeping records and it is well over a decade the data that we see suggests that business spending will actually start to accelerate and drive the economy faster on the back end >> is that in part by the tax cuts >> a stronger profit growth, plus tax cuts.

>> that sounds pretty good >> stronger profit growth. >> yes, corporations are going to have more money and they're going to spend more. >> so amidst of all of this ove trade and rising interest rates among other things, how important is it that the numbers that we start to see later this week bank earnings among others that they come in and exceed isis estimates or at least meet them. is that a worst problem than it would otherwise be >> not that i am suggesting it would be worst >> well, we are in a period of higher in certacertanty the in certainties had to do

with the trade talk, the war of words. trade words will hurt both exporters and importers. so, we really don't think that's something we want to see and i don't see either side backing it down yet regardless of the fact that the chinese have not counter that back to the latest $100 billion proposal by trump to raise tariffs >> brad, to your optimistic point pointing to earnings and tax cuts, i think the worries is that the deregulation and tax cuts that we saw in the

administration could get offset if trade rhetoric turns into tariffs. something treasure secretary says right here was a potential. >> are you not afraid of that? >> i think a lot of the numbers are thrown around are missing part of the points china does a lot of assemblies and not like they are designing and manufacturing. little value ads and a lot of what nchina does if you look at the deficit between u.s. and china, it is half that. so it is the first point the second point is i think it is manageable in terms of a lot of these trades occur within supply chains. we think supply chains are flexible the proposed tariffs are 0.1% of the global economy not to say they won't have meaningful impact on certain companies. they will. >> but in aggregate, i think it is manageable.

>> when we see the big sell-offs, buy into them and they're not telling you anything about the economy or trade >> i think it will not cripple the economy, number two, you have to think of winners and losers at alger we are thinking of who'll win and why those are companies of good cost structures and pricing power if you think of the retail sector and tariffs are instituted and prices do go up because they are to pass it through, who's likely to pass those costs along. someone like amazon or maybe has prime sub kripscription and a sg cost structure or kind of a low end department store type retailer that's under a lot of pressure >> brad neuman, thank you both for your time, i appreciate.

>> the u.s. and china going back and forth about tariffs. we'll tell you what the next move will be if it keeps on escalating >> stocks in china are leading the markets higher, apple and boeing and caterpillar are all pori dn.wengow trade tariffs and your money, coming up on "power lunch," don't move you know what's awesome? gig-speed internet.

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lunch. the u.s. and china is going back and forth between tariffs. what could the next step be? steve liesman is joining us now of an analysis of this >> there are two uncertainties out there created by the president's threat of additional hundreds of billions of dollars of goods and services that could be subjected to tariffs. will they be put in place and what product services are vulnerable vulnerable y the five top imports of china in the u.s. these are areas of buckets of trades that can be subjected to tariffs, following capital goods and followed by -- industrials and supplies and foods and beverages. >> mnuchin was on saying all the numbers tha cot's coming out is-

>> this is from china. now, the other side of what they buy from us. this is subjected to their tarif tariffs. capital goods and travel services by the way includes education. when the chinese come here to g to hotels and niagara falls or coming to one of our schools, that's an export services. food and beverages and autos are the other top five >> foods and cultures. >> exactly that's there. there is travel which includes education. transportation and financial services and maintenance and repair services. here is a couple of other issues of 2015. u.s. companies did $2091 billion in sales in china. it is not even counted in the trade data, why? because it is not exported or imported it is sold

these are majority owned companies. could they be vulnerable to chinese's retaliations >> are there substitutes available in either country or around the world are products using supply chains to increase values added and magnify the economic impact. it would compound the economic effect it could be a tariff on $10 of goods. it becomes $20 or $30 out put if we get to that point. >> their exports are more valuable than ours because they are more involved in the supply chain? >> i think so. i am not sure. here is the ill story. if you want to sell me sneakers at $3 that i sell in this country for $80. i will take the trade all day long >> that's nike >> i didn't say that >> exactly >> steve, thank you. let's talk about this with fred

kemp and our cnbc contributor and, fred, you have been talking to chinese officials what's their reaction to all of this in we have seen the retaliatory tariffs that's been threaten give us behind the scenes color as to how they are taking it all in >> the feeling i get from them is one more of amusement and a little bit of confusion rather than alarm they look at the numbers, if you have $50 billion of tariffs on one side, that's about 10% of chinese exports of the united states on the u.s. side it is 40%, if you go up to the extra hundred billion, that's all of u.s. exports to china and it is still only 28% of the chinese. the balance is more in their favor. second of all. they see that the trump administration comes out hard but will use it as a negotiating tactics.

nothing have been done yet it is out for consultations and the chinese is going to wait for the first u.s. move to take their move they're feeling as well that this soup is not eaten as hot as it is cooked as one says it in german >> certainly with big updates that we get. tony, is that a sound strategy from the administration, come out and threaten big but listen to larry kudlow who says he's optimistic as to how it is going to play out and he's not a tariff guy so does not want to see it go through. >> i respect larry on that i think larry's intentions are great. there are mixed signals coming out whether the president is talking and peter navarro or larry larry, they have different views on this. if we are in this mobilization for a trade war where people are trying to anticipate what the

future is going to be, it is complicated for governments to deal with and steve's point on sourcing it is not just the bilateral relationship of china. others can be affected and also but for market participants, it is really difficult for them to anticipate they cannot wait for tariffs to be put in place. they have to anticipate, are you going to buy soybeans six months from now are you buying it from the u.s. or brazil and what are the reasons behind it. >> i want you to go back in time and you see the president tweeted about why didn't obama or bush or clinton do something about it you worked for bush, were you frustrated of intellectual hur them >> another bilateral meetings that we had before that time and you know with the clinton

administration did, too. there is been progress overtime. the hardest thing for suck sagot is the different pressure they have it is a symmetric relationship we definitely want to see china make progress for itself and the global trading system. but, they can weight it out. she became ruler for life and they're not worried for midterm elections in china they can waive and take their time to do things. >> fred, we are at the hot air stage right now with the exception of steel and aluminum tariffs that's already been put in effect. what are the odds that we get pass the hot air stage to a real paint point where real dollars come into play and again, i remind viewers that when big numbers like $60 billion and

$100 billion are thrown around. that means goods and services are potentially, potentially subjected to tariffs of some small percentage >> yeah, let's not forget that this is for president trump is about domestic politics to show his voters and constituents that he's getting tough so you have to bet that he's going to insist on doing something it is hard with the rhetoric right now and it is getting back in the partnership agreement 11 other parties to the agreement have agreed. they agreed chile just weeks ago, president trump pulled out of this in the first hours of his presidency >> would congress go along, fred >> i hear the ttp brought up a lot. i am sorry to interrupt. michel michelle's here, the ttp is dead

no matter who won. she would not get it through congress either. it is negotiated and it is there. what we did is we give the chinese a gift by pulling out of it free trade agreements made up of 40% and only 10% of tariffs. that will means we have much different problems with countries that we don't have free trade agreement >> is it feasible today? >> tony, what did you think? >> secretary mnuchin hinted that the doors does not close inform forever on ttp clearly it would be better to confront with china rather than going alone strategy the ttp group is there and maybe it will come us. we are using the base of ttp with our nafta administration. a lot in this is good and maybe

some modifications we can put the gang back together again and be able to confront china with a united front >> we hear over and over again, fred and tony that multi lateralism is not the trump way. >> i agree with tony that it may not be the trump way but it is the best way to negotiate with the chinese. we have systematic in compatibility incompatibility he we achieved something on the side of deficits and something on the side of intellectually, whether the administration likes it or not, it is a better way to go into the chinese rather than dividing ourselves off from alleys whi allies which could be the case >> fred and tony, appreciate it.

the dow is not far behind. look at the dow. it is up more than 300 and more than 400 points. chip stock among the leaders, we'll tell you why they are so hot at this hour biotech is near doubly dblg ouin today. the explanation and what it means coming up on "power. thou hast the patchy beard of a pre-pubescent squire! thy armor was forged by a feeble-fingered peasant woman... your mom! as long as hecklers love to heckle, you can count on geico saving folks money. boring! fifteen minutes could save you fifteen percent or more on car insurance. attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage.

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welcome back to "power

lunch," cayla tausche with the news alert on facebook >> the top democrat of the committee who just met with mark zuckerberg and spoke to reporters a moment ago about that more than an hour long private meeting just one on one. just the senator and mark zuckerberg, no staffs present at the senator's presentation he found mark zuckerberg to be honest and forthright and understanding the gravity of the situation. he said that mark zuckerberg said cambridge analytica lied to the company. he said he and mark zuckerberg discussed regulations in details and various approaches and what would be proesht aappropriate t

effective. he says that he believes facebook's business model is an invasion of privacy and asked whether voters would be safe from foreign flouninfluenced on 2018 midterm, he says to be determined >> he says specifically they're going to hire so many people it is going to have significantly impact our profitability. i know we gotten a hypotheticine and he's number two. it seems significantly to me that the stock is higher today when he's putting in print that they're going to hurt profitability in an effort to answer these questions >> that's an echo that congressional democrats have been pushing the company to do when the general counsel of the

company was testifying, the top democrat of the house intelligence committee said to reporters, companies like facebook, twitter and google need to focus less on profitability and more on cleaning up their mlaplatform this is something that echoes the push they see on the hill already. mark zuckerberg is making that commit in writing to do so >> nearly 2% to your point, michelle, it is been in the stock which is down now for the year which is 20% off the recent highs >> to see it in prints and acknowledge to congress and maybe it is all priced in in other words is what you are saying >> maybe, there is some bad news >> thank you, cayla tausche. >> as we are talking about it, a big rally on wall street right now. the nasdaq is on page, one group that's helping to fuel the rally is the chip stock.

abacore is raising the stock semiconductor index is off 10% at its highs it is time to buy for those who have a horizon of longer than three months the chip sector won't feel a direct impact in the near future what are the best deals of evercore it also likes nvidia saying earnings are clear catalyst. it is a price target on lam research of $17 to $18, trading right now. that cannot be right $198 >> asml also >> china and the u.s. going back and forth on tariffs china could be ready to unleash a secret weapon. what if china stops buying u.s. products and stop investing here as well. mi uonpook at that question,

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hello everyone, i am sue her herrera. here is your cnbc update president trump condemning the suspected poison gas in syria and says he'll make a decision on u.s. response within the next couple of days >> we are studying that situation extremely closely. we are meeting with our military and everybody else we'll be making some major decisions over the next 24-48 hours. some 2500 french police tore down barricades from squ squatts at least one person was arrested as scattered clatters throughout the day. the oklahoma teachers walk-out of a second week. they are demanding funding for education and pay raise. you are up to date that's the news update at this

hour i will send it back to you, ty >> thank you very much sue we got a news alert on wells fargo and wilfred frost has the story. >> we are learning from the reuter report that ta fine is s extracted wells fargo. >> it is a biggest o f a fine on wells fargo on september 2016 for the infamous cross selling scandal of 100 millions, since then of mortgage reselling and autole lending and myc-- the shf wells fargo are up nicely at 1.7% the broader index is up about

2.2% we are seeing wells fargo lack the market but really still near its highs. not a share price reaction that the reuters are citing the three unnamed sources. >> thank you, wilfred. 1.4 billion people, theoretically, they can boycott american products. seema mody is looking into that. >> salmon from norway and japanese cars and the most recent is boycotting south korean cars and entertainment. the worry is that china could use a similar boycott of american products. most vulnerable with the u.s. dpa companies that have been investing and growing their business in china.

the iconic brands like apple makes 20% of its sales and china and other names we have been speaking about, financially advisory firms that provide services to chinese companies could be impacted. black rock expressed that china remains a top priority for the top asset firm u.s. service exports to china which has increased over 400% from 2006 to 2015. that's according to the china's counsel. now we look to president xi's presentation tonight >> would xi say don't go to starbucks or would it be that o overt? >> social media maybe? >> social media is the tool they use to disperse message to everyone and broader bases in china, it is typically not an

unofficial business. >> it is a subtle way to tell their citizens away from products right now 2016, chinese investments and the u.s. totaled $29 billion after the big steady increase over the years entertainment retail, real estate and hospitality no longer of the big area of interests the chinese investment coming in focusing on biotech and infrastructu infrastructure >> does the drop in china had anything to do with president trump? they do it every year. good to have you here mr. orleans. >> is it because of trade tensions and president trump >> no, it is not exactly trade

reasons. there are two fundamental reasons, one is chinese capitals control, they have been in effect for over a year and they reduced chinese investment enormously and the other is increase of number of cases rekwer rejected in the united states. we see it taking on a bigger stand on technology and as well as purchases that involves data of u.s. self-defencitizens we saw a number of deals in the technology sector and an attempt to buy money graham which is $1.4 billion deal which was rejected >> they're aggressive of coming out early and stopping qualcomm before it ever even happen >> cfius wanted people to know what it means. >> go ahead. >> i think it is worst than the numbers shown. if you look at deals many the pipeline, that's down 90%.

a lot of the deals that were done were carried over to 2016 the outlook now is looking fairly ofai fairly oblique we have congress talking about amending cfius and allowing it to turn down more chinese investment >> do you think it is a good idea or bad idea. one o f the reasons the chinese is down of the u.s. because of capitol control. they have driven objectives of where capitals should go and they have been explicit and want chinese firms. forget about movies and entertainment, folks, we want you to go after technology where should the government come down on that issue >> first of all, the chinese government needs to move as it is stated repeatedly to market

farmers marke forces >> i support protection of u.s. national security but i wanted done in such a way that we don't depreciate the entire asset b e based of the united states when we lose chinese bidders for whether public or private ass s assets the price of that asset is less so it can have an enormous effect which i think is quite dangerous. we need to make sure we get the equilibrium. >> who is the in wither out of all of this and all the money that would have gone from china into u.s. investment >> i think u.s. investors are. i think pension funds are. >> no, where is the money going? the money that's blocked by the chie menese and the u.s >> the winners will be e.u. and

japan and axion and some of it is being invested in china these companies, these chinese companies that want to invest needs to globalize it is important that the chinese government withdraw these capital controls, it is important that the united states have a policy which balance national security which is the good part of investment. >> where do you find that equilibri equilibrium, steve >> i am hearing you and i suspect many viewers are hearing you, leaning towards the side of boy, keep those bitter in the game everyone n if it means, we potentially giving it away >> if there is a real national security issue what i worry about is creating a

situation where the presumption becomes we are going to block the investment which creates lower values we have a lot of discussions about broadening cfius in a way that's destructive to stock prices and employing creation on the united states. president trump ran on bringing jobs back to the united states investment brings jobs to the united states. there are numeral story. >> where i was born by the way >> thank you so much it was good to have you. thank you for bringing us that first because it is our cnbc's exclusive. >> are we counting down? >> we are. >> we are counting down.

one day, does it say one day, 30 seconds and minutes. >> it is going to happen right here on "power lunch." facebook did not figure it out we did >> we'll talk with cnbc's reporter who cracked the codes this have you nervous, you are not alone. a lot of people are feeling that way especially the millennials how do you get past that fear and invested anyway. as for the non mo-millennials >> i like that

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charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com we are countdoing down befo mark zuckerberg testify tomorrow this one is called qu. michelle castillo is who broke the story and found this company, cubeyou what is this company and what do we need to know about this cubeyou. >> it is plenty on facebook and it is common practice for others to use i found at least one app calls

you are what you like. the data was going to be for academic use they were using information to target advertising on facebook, for example, if you liked things on facebook, let's say you are a beer drinker and you like beer brands >> they were giving you personality test and taking that data and selling it. >> yes, they were giving personality quizzes and people think that'll give them fun results. they're getting that information to access and accessing your profile. >> this sounds parallel to what cambridge analytica was doing. same thing, personality test and a researcher out there that's used for research and next thing you know they're selling it. >> how is this going on when facebook was so focused on this issue because of cambridge analytica? >> i think that's a question everyone is asking including us. >> yeah. >> now, to be fair, cubeyou and

cambridge analytica did point to a third party website that is set for academic business use but that did not match with the term on facebook itself. there is not enough checks and out what these companies are doing, who has access to data, and like where the permissions are coming from. >> how many cubeyous are there out there and cambridge analyticas >> i think it still remains to be seen. this could be the tip of the iceberg. there's plenty of marketing firms out there. we don't know -- i mean, they all have to be vetted. facebook themselves said they're going to do an audit of thousands of companies we don't know to this day. it's a very common practice to allow developers access to people's information, but what that information's being used for, i think, we're finally finding out that we're not clear. >> i think it will be interesting how mark zuckerberg -- it's one thing for him to say sorry but another to explain how they're going to find out all of the bad actors like this. nice job nice story, michelle >> thank you >> thanks for coming on to talk about it

for more on the story, please check it out the article is on cnbc.com there's a big rally on wall street where are millennials putting their money to work in this market we're going to tell you next you know what's awesome? gig-speed internet.

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millennials, like everyone else, want to know what to do with their money and one area they are turning to increasingly for advice is robo advisers. let's bring in michael, the cofounder and ceo of wealth simple, among the first robo advisers to focus on millennials. welcome. good to have you with us >> thanks for having me. >> if i decide to put money with you, whether i'm a millennial or not, what do i get in return >> we are going to build you a portfolio to meet your long-term needs and more importantly, we're going to try to help teach you that the key to making money long-term is all about boring behavior we're going to try and make it a really cool and sexy service all around helping you be smart and boring >> do i do all of my prep work, in other words, my inputting of what i have, what i owe, what i earn, online >> you do. so you would download our app or go to our website, wealthsimple.com, fill in a short questionnaire about your goals, risk tolerance, and then we show you a portfolio that we think would make sense for you

you'd have the option to make that portfolio a socially responsible portfolio as well, which is very popular. >> what percentage of millennials choose to do socially responsible >> over 50% of our clients are electing to be in socially responsible portfolios >> they want an impact, not just a return >> they want to know not only is my money making money, long-term, but also aligns with my values. we're seeing that increasing in popularity >> do those socially responsible portfolios do as well, score as well, return as well as nonsocially responsible portfolios >> that's a question we encourage our investors not to ask. what we're trying to encourage our clients to focus on is not short-term performance but long-term behaviors and there's emerging evidence, that's fascinating, showing that socially responsible investors often outperform their peers because they're more disciplined. by introducing something more than just chasing returns, they're less likely to panic when the market goes down. >> what's this boring behavior that you keep talking about? >> disciplined saving, not panicking when markets go down, sticking to your asset mix one of the things that gets

investors into trouble is they like to find things that are exciting or fun. they jump into bitcoin when it's at market highs, decide to sell out in 2008 when the market's in a low and the key to being successful is contributing are regularly to your plan, sticking to it over the long-term >> it a question on this socially conscious, blackrock announcing last week that it was going to block some funds from investing in walmart and kroger and dick's because they sell guns is that working? how much of an increase have you seen since some of the recent events like parkland >> i think this is just further evidence that the world is moving toward this mandate you see some of the biggest pension funds and endowment funds in the world have a socially responsibility mandate to them which include things beyond just guns, diversity, environment, and i think you're seeing this an increasing trend -- not only in institutional investor side, but we're a canadian born company that's now operating in the u.s. and the uk as well, and the government in canada just passed a new budget for the first time

which was all about gender diversity. you're seeing this make its way, i think, through the entire spe spectrum of politics as well as the investment landscape >> thank you very much appreciate it. >> thanks for having me. mark zuckerberg already on capitol hill today, ahead of his testimony this week. up next, we'll speak to one of the senators who will be grilling the facebook ceo and a look at the s&p 500. a sea of green today a big rebound from yesterday -- excuse me, friday's big selloff. more on the market rally in the next hour of "power lunch.

welcome to hour number two of "power lunch. here's what's on the menu. dialing back the rhetoric, policymakers trying to soften the tough tone on trade, investors piling back into stocks today is it the right move zukerberg heads to the hill. facebook ceo testifies before congress tomorrow and we'll talk to one of the senators who is getting set to question him. what does he, the senator, want to hear. and almond farmers are trying to assess what the damage will be from china's proposed tariffs, which take direct aim at their industry. we're live on the farm with that story. "power lunch" starts right now

and i'm sara eisen here's some breaking news. >> the cbo projecting that the new tax law will vault economic growth to 3.3% this year that clears trump's bar and it is better than the previous cbo projection of just 2% growth now, over the next ten years, the average growth is also expected to tick up to 2% versus 1.8% as previously forecast. now, the tax law, again, is a big driver of that the cbo estimating that it will contribute an average of 0.7% to economic growth over the next decade and create 1.1 million jobs as for the federal spending deal, that is expected to boost gdp but 0.3% this year and 0.6% in 2019. the flip side to all of this, of course, is bigger deficits even with dynamic scoring, the tax law is expected to add $1.9 trillion to the deficit

over the next decade by 2028, the national debt is expected to reach almost the size of gdp. and that is going to result in a slightly steeper fed funds rate. the cbo estimates that the fed funds rate will be at 4% in 2021 that appears to be slightly higher than the federal reserve itself is projecting so, bottom line for all of this, guys, is that the tax law does not come close to paying for itself, but it does juice economic growth in the short-term >> so help me understand the math like you said, it helps juice economic growth so therefore they think they will get more tax revenue, right but then if the deficit's still going to go up, that's because they think the expenses of the federal debt are going to be higher >> they won't get enough tax revenue -- that's right. they expect to not enough tax revenue to cover the overall cost of the plan the dynamic effect of this tax law is expected to be in the range of about $400 billion to $500 billion over the decade >> but the revenue is still

higher than it otherwise would have been because of the higher gdp, right so, you mentioned the issue with they also expect that the interest on the u.s. government's borrowing is going to be higher that's where the higher expenses come in and hence the higher deficit. >> right it will crowd out private investment in the long-term, result in higher debt, higher interest payments and that will also contribute to total outlays increasing over the ten-year period >> got it. thank you. let's get a quick check object markets stocks in rally mode let's take a look at the numbers. the dow industrials are up 413 points the s&p 500 up technology, health care, financials, they are leading the way. telecom is the only sector in the red. merc, intel, microsoft, sis co, those are the dow powers and fang stocks rallying monsanto soaring right now on the reports that the doj has approved bayer's acquisition of the company.

stocks appear to be stuck in a box. just take a look at last week, which was a roller coaster ride for investors. i say that that way because we know tyler hates that -- look at it that's what it felt like >> it does look like a roller coaster, tyler >> the dow traveling more than 4,000 points during that roller coaster. what can break the market out of this indecisive state in we used to just call it a trading range. bob and mike join us on th floor of the nycse >> i don't know how you feel welcome back from vacation the important thing is what i see is lot of volatility this is another day where we're up 1% after a down 2% day. there have been a whole bunch of days right in a row, down 2%, up 1% so i see a lot of volatility what i don't see is market leadership emerging as everyone tries to figure out, look at that pattern there down 2%, up 1% where is the leadership? nobody has it. a lot of people are confused and i also don't see volume.

this is -- the volume is terrible today so, on up days, we don't see people rushing in to come out and buy the market >> it's definitely indecisive. i think if you wanted to look on the bright side, you say the market's not gathering downside momentum either when it gets down near the floor. it's not stringing together multiple days of snowball selling. at least not yet as many trips as we've made down into the zone, it has sort of held here. but you're right it's not a matter of a particular leadership group leading us out >> so what we're hoping, everybody down here is hoping is earnings are going to change the story. we keep waiting for it to happen we're going to get them on friday but the numbers are so phenomenally off the charts that we're hoping that's going to be the focus for a while. essentially, they have doubled in the last six months from about 9% or 10% to estimates as high as 20%. >> the sentiment going into earnings, you've had this pattern where the market runs higher into the reporting season and then you have a lot of sell the news effect, a lot of chopping around and churning of the indexes.

now we're kind of minor the lows as we get into it, maybe there's room for more upside surprises >> hey, mike, i have a question. it was a volatile week it was a roller coaster. and despite all of that, the 2% moves up and down and everything else, the way it shook ourktst, you look at the one-week change of the s&p sectors, they're all higher and you've got groups like technology up 2.6% in the last week. does that tell us that the scary talk that we're getting on trade from both sides is digestible by this market as long as it is just that, talk? >> yeah, i do think that the market is building up a little bit of a resistance the longer we go in this zone where we don't hit new lows and the trade talk seems to remain more of the same story, even though there's sensitivity to the head looinli day-to-day, i think once we give way to reporting season, that can take a little bit of a backseat >> just watch the whole nafta

thing. traders kept messaging me, are we going to hear anything with nafta and peru and mexico and canada i don't know but any positive news, anything in that direction that these trade wars are negotiable, that's going to be a positive. >> this whole time, bond market has been very calm the credit markets have been okay so the markets aren't telling you there's some kind of broader economic issue that they have to contend with at the moment >> guys, we'll leave it there. thank you very much. our next guest believes the financial markets are adjusting to their valuations to new sustainable levels here. what does that mean? let's bring in jim paulson, chief investment strategist. good to see you, jim >> you too, sara >> was this just an overdue correction and we're getting back to levels that are pretty much on par with the earnings that are coming out? >> i think so. you know, you think about last year, we had a year where the symptom market went up very phenomenally and earnings burarl went up at all and this year could be a year where the stock market doesn't do a lot and the earnings go up phenomenally. the result of that ultimately is

we paid ourselves last year in this equity market for earnings coming this year overall. and i really think that in the short-term, i kind of agree with mike in the sense that, you know, we could get out of this volatility range perhaps if we finally decide that we have successfully tested this february low bottom enough now and we're -- we've success at that or headed higher again or if we just change the conversation away from the "daily news" flow to, for example, the earnings story, that could also -- >> everyone's saying that, jim everyone's saying earnings are going to be great, so don't worry, the fundamentals are sound and yes, we will see some effect of the lower taxes and corporate america has held up pretty well, but we also talk about all the uncertainty with trade. and even though it's just warning shots at this point, if you're a boeing or a ford, how do you plan with the specter of tariffs looming large between the two most important economies in the world

>> i think the trade is a -- is an issue and certainly a significant trade war would be a big issue. but ultimately, i think the real problem is the market's just vulnerable it's got several vulnerables valuation is too high. financial liquidity is contracting. you've got raising inflation and interest rates until we reach a valuation level for both stocks and bonds which can deal with the new reality of growth with negative consequence, that is, growth with overheat problems from full employment, i think we're going to continue to deal with the choppy, maybe downside biased market >> so what is the proper number, then, when you say you want to see the market get to the correct valuation? what number are you looking for? when and what are you looking for when it comes to the -- i assume you're talking about the ten-year yield when you talk about treasuries >> i am. and of course i don't know what that correct number is my suspicion and my gut tells me that a 3.5% tenure right now

could withstand an economy moving from 2% to 3% inflation, for example, and maybe a 17 multiple price earnings multiple on trailing earnings to me could handle about a 3% economy. and you know, if earnings reach $150 by the end of the year, then around $25 or $50 would be around 17 times trailing earnings i don't think there's a lot of downside by year end but it doesn't mean we couldn't have downside earlier than that before year-end. overall, i think we're going to be dealing with a flattish market this year as earnings grow into these valuations and throw bull to reach a level where it can sustain again >> yeah, the s&p is at 26.45. thanks, jim. let's get to the latest on the brewing trade war. the trade war potentially with china. president trump threatening to add billions of dollars more in tariffs on chinese imports and that could have a major impact on america's ports

cnbc senior national correspondent is live in charleston, south carolina, with more details. >> reporter: i want you guys to all write down michelle, tyler, and sara, write down a number between 1 and 1010 that's going to be the number of trucks that pass us during this hit. the amount of activity here at the port of charleston is absolutely nuts. i mean, you can see these trucks going back and forth this gives some of the size and scope of how much trade is just going on at this port, which, by the way, is not even one of the five biggest in the united states but perhaps the most important of any state port for that state we'll get to that in just a second let's talk about trade and let's talk about tariffs because it seems to me the battle in the white house is helping manufacturing jobs by reducing reliance on cheaper imports, understandable, it helped get the president elected. but the other side of the trade story is the one that why we're here, which is that the thousands, tens of thousands of men and women who are directly employed and engaged in the business of trade, if you will

vis-a-vis those truckers behind us, the 600 people who work directly for the port, everybody on the ships, everyone that's interrelated to what you see going on behind us the other side of the trade story, which perhaps has not been told enough, is what happens down the road with trade. what i mean, guys, and we interviewed the president of the south carolina ports association, jim newsome here's what he said. he said, basically, if you trade enough like bmw or michelin, after a while, you may just say, why are we shipping? why don't we actually invest in the state which we're sthipi shipping a lot to? listen >> we do about 55% of our volume is imports, 45% is exports i think that exports are going to be the growth area, because there's so much foreign direct investment in this state this is a manufacturing state. bmw has invested $9 billion here in 20 years. >> and so guys, when you look at just the trade numbers and you

look at things like the trade deficit, i understand the numbers are big and scary, but those numbers do not take into account what happens when a bmw, when a michelin, when a volvo, which is coming to south carolina, decide that they want to maybe trade a little less and invest $1 billion or $9 billion like bmw and put down roots here and create a manufacturing base where there wasn't one before. not a justification, not an excuse, but i think those are the sides of the trade stories that maybe we don't hear from enough >> what comes in and goes out of this port, most especially, brian? do you know? >> yeah, actually, paper products is number one, tyler, but automobile parts and finished automobiles are number two. in fact, this is not even the auto port. it's across the channel. that's where all the bmws that are made in greenville come out. volvo's got a factory here guys, think about it this way. there's a massive german car company that employs tens of thousands of americans shipping here out to china.

there's a swedish car company which is now owned by the chinese, volvo, which is about to employ thousands of americans here, all driven by the truck drivers behind us and the ships that are owned all around the world by the germans, by the dutch, by the danish, by the greeks, by the taiwanese the point is everything around the world is interrelated and something, by the way, very cool, guys we got a chance to see one of the biggest cargo ships of the east coast just happened to come in while we were here. it is the ocl korea, 14,000 of those units were on this thing it is spectacularly large. it looked like a super tanker. and with every ship, guys, there's about $1 billion in goods and you can see the trucks coming and going like mad here it is not a justification, but we got to remember the number of jobs and activity that's engaged in trade as well as in

manufacturing. >> all right, brian, thank you very much. brian sullivan on scene in charleston coming up on "power lunch," mark zuckerberg getting ready to testify on capitol hill. the facebook founder and ceo facing tough questions over how his company handled user data. we now have some of his prepared remarks and we'll share them with you next. plus one of the senators who called for the hearings will join us. "power lunch" is back in two minutes. ♪ i've got the moves like jagge ♪ ♪ i don't need to try to contro you ♪ play "do it like this".

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xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "power lunch. we are just about 24 hours away from mark zuckerberg testifying before congress. the facebook founder and ceo facing some tough questions on its handling of the cambridge analytica scandal. zuckerberg is meeting with lawmakers today on capitol hill ahead of that hearing and releasing some of his prepared remarks this afternoon let's get the latest now from washington >> reporter: hey, sara zuckerberg is making the rounds with top senators on both sides of the aisle who represent the committees who will be grilling him tomorrow in just about 24 hours' time. his first appointment today was with senator bill nelson, a democrat from florida who sits on the senate commerce committee and that senator told reporters after the meeting that he shared with zuckerberg the need to

regulate social media in a big way. listen >> the message i wanted to convey to him, that if we don't rein in the misuse of social media, none of us are going to have any privacy anymore >> reporter: he described facebook's entire business model as an invasion of privacy and suggested even the fcc should join the ftc in looking into regulating facebook, social media, and the tech sector, but despite his criticism of the industry, he had some praise for zuckerberg he called him sincere, honest, and forthright the two spent more than an hour one-on-one before zuckerberg left to make more meetings here on capitol hill. i'm standing in front of senator dianne feinstein's office. he's t she's the ranking democrat on the senate judiciary committee there are other reporters staked out here in one of the senate office buildings trying to ask him questions as he comes and goes to these various meetings

that he's holding. of course, tomorrow, he will be grilled by 44 senators from 2 committees that's going to be a long and bruising hearing before he talks to the house energy and commerce committee on wednesday >> all right, thank you very much, kayla. what do lawmakers want to hear from mr. zuckerberg tomorrow joining us is senator john kennedy of louisiana he is on the senate judiciary committee and he asked committee chairman chuck grassley for the hearing. senator, welcome good to have you with us >> thank you good to be here. >> i don't know whether you just heard your colleague, bill nelson of florida. he said if we don't rein in social media, we're going to have no privacy and second, facebook's entire business model is an invasion of privacy. do you see it that way >> i think that's a trifle premature. i haven't spoken with mr. zuckerberg i think it's good that he's up here lobbying members of congress, but i'm more interested in his testimony under oath i come in peace.

i don't want to hurt facebook. i don't want to regulate them half to death. but i think it's pretty clear that the digital promised land is not all milk and honey. we've discovered some impurities in the punch bowl, and there's some questions that mr. zuckerberg needs to answer i hope he'll be candid i hope he'll be forthcoming, unlike our previous hearing where he sent his lawyer who said nothing he was a silver tongued devil, but he said nothing. i'm hoping that mr. zuckerberg won't just, i don't know, pull things out of his orifices, that he'll talk frankly about what facebook can and cannot do >> what are you going ask him? >> well, i'm going to say, look, i think it's swell that i can go on facebook and see what my high school buddies had for dinner last night, but do you think it's fair that in exchange for

that, that i agree to give up all of my personal data to just about anybody in the milky way i don't believe i signed on to that >> but presumably you did at some point, senator, if you accepted the terms of service that i'll agree with you are written in mouse type that no one -- and a legalese that no one could read, let alone understand, but presumably, somewhere along the way, you did assent to let your data be used, maybe not in the way it was ultimately acquired by cambridge analytica. >> well, maybe we need to rewrite the service agreement then in english as opposed to s swahili. i'd also like to ask mr. zuckerberg, who owns my data do i own my data or does facebook own my data >> what do you think who does >> well, i think i do. i'd like to talk about the

ability of a facebook user to be able to erase his or her data. >> they're getting paid for their data people have talked about that, that facebook should pay people for their data >> i would like to talk about my right to not to opt in but just to opt out i'd like to talk about my right to say to facebook, look, if you want to sell my data, as you just said, what do i get out of it should i get a percentage of the revenues should you have to seek my permission i want to know if facebook thinks it's in the public interest for it to be able to buy up all of its competitors. i'd like to talk about the anti-trust implications. and the overarching issue to me, which is the most frightening issue, does facebook really have control or have they lost control? you know, the -- there's an old saying, the need for control usually comes from people who have lost it

when facebook's lawyer very confidently says, oh, we know everybody who's advertising on our platform, my response is, okay, then how come you let the russian despots do it and try to influence america's election did you really know that if you did, how come you let them do it >> in the interest of time, senator, i mean, we are expecting some outrage, expecting a lot of relevant questions that you brought up. i'm just wondering what the real appetite, though, is on capitol hill from republicans to actually do something about it, any regulatory action. i heard you use the word anti-trust, privacy. what actually can be done on a regulatory front >> well, we can do anything we want to. i mean, if we've got -- if we've got enough votes to stop -- we can pass anything we want to i don't see this as a republican or democratic issue. i see it as a privacy issue. i see it as a prop begpropagande

i see it as an american issue. and i think facebook's done some wonderful things, good american company, i'm proud of them but we have some problems, and they need to be addressed. it's that simple and i'm not interested in -- i'm not interested in scoring political points i just want to know what facebook is going to do to address these issues and can facebook do it i worry that facebook is really -- has lost control and this is bigger than facebook, and they may need a little bit of help. >> all right not the digital land of milk and honey. that's a good one. senator john kennedy, we'll be watching it's going to all play out on capitol hill tomorrow on "power lunch. thanks for joining us. >> you bet >> i also like the impurities in the punch bowl line, not pulling anything out of his orifices he can come back any time. >> we like that. so, pharma is in focus, the study that's given merck shares

a boost and the big bet that novartis has just made >> announcer: the cnbc trend tracker live data board is brought to you by the cme group. obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪

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welcome back to "power lunch. some good news for merck and a big bet for novartis shares of both companies are moving higher. meg here with some of the details. what did we learn today? >> some positive clinical trial data and some big m&a news those are bringing much needed cheer to investors in this space. let's start with merck the company said its big drug helped certain lung cancer patients live longer compared with chemotherapy in a clinical trial. the medicine, which was first approved in 2014, brought in $3.8 billion for revenue last year for merck, making it its second largest product it competes with other medicines that unleash the immune system on cancer cells. now, the key is discovering in

which patients these medicines work best and the population in today's results accounts for about 10% to 15% of patients with lung cancer we don't know the magnitude of the data but lung cancer causes the most deaths in the u.s. of any cancer we'll shift to novartis now. the swiss drug maker is spending $8.7 to acquire avexis, a biodevelopment company gene therapy is another hot new technology that involves delivering a healthy copy of a gene to make up for one that causes disease hopefully with just one treatment needed now, the deal at $218 a share represents an 88% premium for avexis shareholders and is boosting other gene therapy stocks as well so clearly investors here are hoping an m&a boom comes back. >> look at the moves in those stocks that's amazing meg, thank you >> thank you let's get to sue she's got a news update. >> reporter: thank you very much

here's what's happening at this hour, everyone florida's governor rick scott announcing he is running for the u.s. senate this november. he will run against democrat senator bill nelson in what is expected to be one of the most expensive and highly watched races in the country >> we can change washington. we must change washington. we will change washington e. together, let's get washington to work. >> iran's president lashing out at the united states as iran marked national nuclear day, dedicated to that country's achievements in nuclear technology he says despite its attempts, the u.s. failed to destroy the 2015 nuclear deal between iran and other world powers and pope francis issuing a major document that says catholics should not give excessive importance to abortion while disregarding other issues like poverty the 100-page document is called

an apostolic exhortation it is named, rejoice and be glad you're up to date. that's the news update this hour sara, welcome back, and back to you. >> thanks. oil market closing up for the day. let's go straight to kate rogers, who's at the cnbc commodity desk this afternoon. >> crude oil closing up. on pace for its best daily performance since march 23rd this is also its second positive session in the past three. wti coming off its worst week since february 9th, when it fell almost 9.5%. investors are cautious over an air strike that overshadowed ongoing concerns about tensions between the u.s. and china oil fell friday after renewed concerns of a trade war. >> kate, thank you and bracing for impact, almond farmers getting increasingly nervous about the president's proposed tariffs we will head to the farm for

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welcome back to "power lunch. let's get you a check on the markets. we are erasing a lot of friday's losses but not all of them industrial's down more than 1% s&p is higher by 1.5%. nasdaq is up almost 120 points leading right now, technology, financials, health care, telecom, the only o sector that's in the red right now. merck and intel are leading the dow. you heard from mike about why merck was up so sharply. ge is the only down name that is lower right now. our next guest says the up and down in the markets is now the norm get used to it he's favoring small caps let's bring in steve he's a portfolio manager with f federated. good to have you here. you like the small counts for a lot of reasons people do, because they are less subject to tariffs, potentially, and also likely the biggest beneficiaries of the tax cuts? >> yeah, i mean, those are certainly two really good reasons to like them we think there's others. we've talked about an industrial

revolution, built on ai and robotics and automation. and these companies are at the forefront of that. they're also levered to economic growth, which is pretty strong in the u.s we've been running right around that 3% level and m&a, which we saw a little bit in the health care sector, large cap pharma, which really needs to improve their drug pipeline and there's a lot of small and mid cap biotech companies that are attractive same thing in financials if we raise the limit, you're going to see the buying -- >> systemically financial institution and they change the rules if fewer banks become subject to sfi -- >> we'll be reducing the penalty of getting larger, essentially >> got it. so they can grow more. >> absolutely. >> do you prefer small company stocks that are on the growth side of the ledger or on the value side of the ledger and how do you draw those distinctions right now? >> we're overweight both you know, and federated, we're

recommending an 8% or an 80% overweight to equities our most recent add was on the growth side but we've been overweight value as well so on the growth side, you're going to see things like semiconductor companies, some of those biotech companies but on the value side, you pick up some of those financials so we like both we think entire asset class is more or less attractive here >> steve, thanks now to the latest in the u.s./china trade spat, which is leaving almond farmers in a bind aditi is live in california. >> reporter: hi there, tyler, that's right the tariffs are sure making a lot of california almond growers increasingly nervous that's because 80% of the world's almonds are grown right here in the state.

>> reporter: so, china is actually the third largest export destination for almonds from -- of the world's almonds from the u.s california, again, growing 80% of that. we spend a lot of time here at the farms here and they grow -- give 32 million pounds of -- they process 32 million pounds of almonds and of those, they expofrt about 90% to all countries, not just china, but china obviously is a top export destination, and the owner here was telling me they are getting increasingly nervous but they're used to dealing with things from mother nature and things that are beyond their control, and they're watching this very, very closely. now, among the public companies that are trading and affected by the traariffed is gladstone lan corporation. they actually released a statement last week saying that because of the global demand is rising for nuts like pistachios

and almonds and because supply is so limited, they still don't expect that much of an impact on their nut farms. >> wow, 80%. we both wowed that number. >> of the world's almonds. >> from california aditi roy, thank you for that story. still ahead, just how worrisome is a potential trade war for the energy market? we'll ask the ceo of one of the largest energy companies in the world. that's coming up next. ♪ let's get it started in here ♪

mark zuckerberg just wrapping up his meeting with lawmakers ahead of tomorrow's testimony on capitol hill. over facebook's data problems. you can see a big crowd around him. what else would you expect we're counting down to that hearing. it begins at 2:15 eastern time tomorrow, and you bet "power lunch" will carry it live. not to be missed oil prices are rebounding today but they took a hit on friday along with the rest of the markets after the president's tariff proposal. just how worrisome is a potential trade war for the energy markets here for first on cnbc interview is the ceo of one of the largest energy companies in the world. good to have you here. >> thank you >> how worried are you about

some kind of trade war between the u.s. and china what would that do to energy prices >> we are worried about all the different possible wars and different geopolitical crises we have around the world. we have not just this tariff issue that i don't think that is the most dangerous thing so, we'll see if there is some impact now that global market is so interconnected and when you do something in a place, you you can have a consequence or impact in other place so it's not easy to say i do that to get that you can have all sort of various issues against you but iran, russia, and the middle east, north africa, so we have a lot ofreason why the market is very nervous and very volatile >> you of all people would understand what danger is. you ran libya for n.e. for a long time.

there was actually a tough time for the company for a long time because production's been all over the place >> yeah. we have some at the beginning, 2010, after the war. we have some issues then we have a constant flow of production rate because we -- our production is mainly gas, gas for the domestic market, and the remaining, i think, one-third is going to europe so the gas is so important, because it's for power generation, it's cover all the countries. we cover all the power generation that they needed. and there is no export because gas is more secure >> have you ever seen a global economy that was as strong across the board as this one, and what could mess it up? >> i think i never seen that i'm in the business -- i think i started in 1980, so it's 38 years in this business so, i passed through a lot of different crises in the '80s and

'90s, 2000s. never see there because there are too many degrees of freedoms and the reason we are so strong, volatility in the market, because sometimes down, up, down, up, and now that this talk, the liquid stock is down, so there is no margin, every issue we have, there is immediately a reaction, because there is no margin anymore because now, the fundamentals are really leading the price, so geopolitics is playing a very strong role. >> i just -- another question on the trade, just to drill down a little bit further china's the biggest mporter, biggest customer of oil. could it threaten the u.s. shale industry, one that president trump has vowed to support and fight for if these -- >> again, the shale oil? >> could they punish shale >> no, i don't think so. i don't think so i don't think so because they, you know, when you buy a lot of oil or a lot of gas, you need the verification,

so i think they need to have different source of oil or gas, so i don't think that that could be the issue i think that the tariff issue is now really at the level of headlines, and maybe to start a negotiation. clearly, it create this continuity and that is not good because to invest, we need stability. so, every time there is a new news, we -- that we don't understand, we have to get an interpretation, we will reduce our investment, and that investor, using investing in us because we are a long-term investor so we need stability. that is no good, clearly, for the market, but as i said, it's not the only point there are so many points, and as you said, never been so complex and interesting, we can say. >> thanks so much for bringing your perspective appreciate it. ceo of o eni good news, folks, your

chances of being audited by the irs are going down robert frank is here to explain why. i guess it's good news if you're a millionaire. >> good news for taxpayers, not so good for government the irs is going to audit fewer than 1% of tax returns this year good for taxpayers, especially the wealthy, but possibly costly for the government in 2011, the irs audited 13% of those filers who earned $1 million or more last year, that figure dropped to just 4 bill clint%. those who make more than $200,000 have seen their audit chances drop from 4% to 1% this is a very sharp reversal from the irs under the obama administration they created a special global high wealth group to target multimillionaire earners who were using private companies and a lot of offshoring to avoid taxes. between 2008 and 2012, audits jumped 50%, but now it's likely to drop even further the irs budget dropped more than $1 billion last year to $11 billion. the drop in audits has cost the agency between $4 billion to

$8 billion in uncollected taxes. that's according to the irs. but the wealthy, they still pay the vast majority of taxes in 2018, the top 20% will pay 87% of the income taxes even though they earn only about half of the nation's economy. the top 1% are going to pay 43% of the taxes and the top 0.1 plk%, they're going to pay 22% of the nation's taxes the bottom 60% of americans pay no net federal income taxes. >> what does that mean >> as an entire group, there might be some people who pay income tax, as an entire group, they pay zero federal taxes. >> robert, thank you a look at today's tech bounce what are your best bets in a sector right now we've got some picks from trading nation next. ♪ it's been a long night here and a long night there ♪ action?

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around today wald is with oppenheimer tech has a strong day, but weak month. >> positive on the sector and think they are carving out a base here ahead of what we think will be the extense of the longer term rally. i think the marginal improvement really started last week, last wednesday in particular. there was aengulfing day. opened at a new low, and closed above the prior day's action that's a signal that was exhausted, marking a near term trading low. as far as what to buy in the group, a lot of the software stocks panned out. for instance, salesforce.com while the market is 10% off the january high in turning up, sales force inflecting higher from the january high, a sign of relative strength. investors less willing to give up sales force stock on

consolidation. buy the line there we like tech >> max, are you as positive? if so, which names do you like >> not as positive short term, there's a bid here, a beat up sector, and long term, are what makes us concern is the less tech friendly place the global environment of cooperation is important for tech it's very international. the tax advantage that they historically had is less than the tax cuts, but there's a big sector rotation into the domestic and manufacturing names, not superb for tech we think there's a good chance that there gets to be more than a little bit pummel on the flight as regulation of privacy shift, and bottom line is, when we are done with social media, we have the net neutrality rules and space of just seeing the basic rules get rewritten. very rarely good we think it's a good short term bounce probably long term, still got more weakness here >> more on that with zuckerberg on the hill tomorrow guys, thank you.

arie and max for more, go to tradin tradingnation.cnbc.com >> check, please, is next. so what else is new? how's your mother?

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check please >> russian stocks hammered today, responding to the sanctions put on various oligarchs, russian companies, designations on friday that market was off by more than 11%. two particular companies, a big aluminum company and em plus, a big energy company look at it down 50%, controlled, and it's been actually a semifrequent guest on cnbc throughout the years cleaning up his image. >> described as putin's caterer? >> not the caterer, but there was a couple of guys that are very, very close he was - >> he was plugged in with man -- >> yes, and recently famous or

notorious because a prostitute he allowed on the yacht took pictures with him with a senior russian official and that came out in the last few weeks as she posted photos. they never learn never. >> so much to say better left unsaid >> my check please is equal payday tomorrow and zuckerberg testimony, but this is the unofficial day it takes april 10th, tomorrow, for women to make as much as men did last year starting from december 30th in other words, we have an 80 cent on the dollar gender pay gap in this country. it's something that companies are becoming more and more aware of in the u.k. -- >> they did a lot of work on that >> if your company had more than 250 employees, you had to publish the data u.s. has something similar too, planned under president obama, but president trump shelved that companies more and more have to do it on their own >> all watching tomorrow right here on "power lunch" 2:15 p.m

zuckerberg, more grilling or more grand standing? that is the question >> he's in the hot seat. >> on a roller coaster day for sure in the markets >> all right, thank you for watching "power lunch," and "closing bell" starts right now. live from the new york stock exchange, this is the "closing bell," hi, everybody, i'm kelly evans. i'm wilfred frost. after a wild week last week, we have the final hour of trading with a rally on our hands. green across all the major indexes as you can see on pace for their fourth rise in four sessions up a healthy 1.5%. >> yes >> the dow up more than 440 points at the highs today, up, as wil said, and what you have to watch about the ral