venues the story here is simple, you can trade in many venues, part of that decentralized trading. if somebody happens at one venue trading simply continues elsewhere. >> bob basketball on the floor run through. give me a ticker. >> appel. >> buy wendys. >> boeing, boeing. >> ford. >> exxon >> all right "power lunch" starts now. >> scott, gentlemen, thank you very much. what a busy day we have got onnd that i'm tyler mathisen here's what's on the "power lunch" menu. earnings versus market rates a tug-of-war on the market who is going to win. defanged $80 million wiped out. all of the fang stocks now down 10% or more on their 52-week high and mr. wonderful's favorite stock boeing crushing on earnings and raising its outlook. the stock is higher today. it is up 80% in the past year. can it keep flying

"power lunch" begins right now ♪ big old jet airliner don't carry me too far away ♪ >> i'm michelle caruso-cabrera dow was down more than 200 points earlier, brief look dipping back into correction territory. yields are pushing higher again. benchmark ten-year note hitting 3.033%, the highest level since january of 2014. we have got the results of a $35 billion five year option moments away check out a couple of big earnings movers today. twitter is getting clipped the earnings beat, companied softened guidance. wynn posted mixed results and raised its dividend. >> amtz unveiling alexa for kids the candy colored echoed had kid

powered content. they also reward your kids for politeness google unveiling its first gmail redesign since 2018. it's designed to help businesses take on microsoft's outlook. we will look at rising rates, what it means for housing with red fin's ceo aid later this hour. the dow has been down each of the past five trading days even as earnings have been pretty good. some of the forecasts maybe not so hot what are the issues that stocks are hung up on i think we know a couple of them, bob pisani. >> we have been talking about it for a couple of weeks now. let's run through four or five issues the market is dealing with number one, we saw this yesterday in a big way, the whole peak earnings debate are we here now? 20% earnings groert for this first quarter. it's going to be 20% for the second, third, and fouk and go down to 10% for the first

quarter of 2019. bears are saying we need to deal with it now. others saying no it can wait rising inflation a lot of companies talking about higher input costs higher commodity costs that may impact margins. third issue, the fang stocks are all down 10% doing better today another big issue, consumer staples are at new lows. they have no pricing power and bran names are being devalued. there is not a lot of leadership to replace those in trouble. energy stocks are doing well but are not big enough to make a big difference boeing numbers were good moved the market early on. guidance also good, on the conservative side. no comments about the peak earnings of boeing caterpillar's ceo scared everybody away from doing it these numbers are going up because analysts are raising them based on what they heard

this morning from the companies this morning northrup grumman had good numbers, guidance on the conservative side. down 2%. good year tire talked about higher commodity costs as well these definitely a stheem. the question is can the companies pass on the higher costs? >> if they can't that means a hit to margin. >> then a potential hit to consumer spending as well. bob, thank you there is this tug-of-war going on right now on wall street. earnings coming in strong. a third of the s&p 500 companies in fact have reported more than 80% have beaten estimates. but we have fear of rising rates that may be putting a damper on that who wins this battle joining us, jim paulson and mark eye bold jim, interest rates, is that going to put a damper on what is better earnings pretty much across the board >> i think so, sarah i think in part we paid

ourselves last year for earnings we are getting this year we are dealing i think with a market that's responding to these earnings at very high valuations and historically the earnings -- or the response of the market to that has been very muted. and it also, when you get good earnings gains at full employment, at least since 1950 you tend to have a very muted response from the stock market so i think we are going to get really good earnings i just don't know until we get to lower valuations and probably higher yields than we are today, i'm not sure that the stock market is going to respond well to them. >> also feels like jim besides the rising interest rate worries that stock investors have it's not just good earnings that are good enough. you have to have a good outlook, too. we saw it with boeing, did not see it with caterpillar or twitter. losing a gain of 10% this morning. now negative what's with the outlooks >> i think one of the things that's happening under the surface right now sarah is it's not just that inflation is

coming up, which it is to some he can tenlt but i think momentum is slowing down a little bit globally for sure. and maybe even in the united states i have got a forecasting model that suggests that the economic surprise index in the united states, which is currently plus 40 may go to minus 40 by late summer so i think that this idea of facing higher rates and higher inflation with decelerating economic momentum, that's stag-flation and that's frightening for stock and bond investors. we are listening to the ceos saying that that's bottoming out. and that's scaring investors. >> certainly starting to worry about it mark you probably can't see the tremendous graphic, but we have got an an nation of guys and their guys representing rates, and guys representing earnings playing tug-of-war.

>> in suits. >> in suits. it is wall street. who wins in other words what happens to the equity market for the rest of year based on what you expect out of these things. can't see the graphic but i understand the tug-of-war. because of these reasons -- we would agree with jim last we are was a year, we had little volatility and markets went straight up because they were looking forward to earnings and now you have seen the earnings and the market is looking forward, where do you go from him we continue to believe it's easier outside of the u.s. right now. valuations have gotten cheaper in the u.s. and around the world as well. central bank policy is more accommodative and earnings are strong there as well we continue to view -- if you look at a multiasset portfolio some of those other asset classes -- look at commodities, the forgotten asset class. we get the tug-of-war here we think that we are pushing a rock up hill it's getting harder in the u.s go outside of the u.s. where you have got upside and cheaper

prices >> that's what i wanted to ask you, where outside of the u.s. and what >> our biggest overweight would be in europe we like financials we like them in u.s. we talk about the 3% and the ten-year and all the focus there is an area that that's good for we like financials here in value sectors such as energy engines outside of the u.s. as well europe, a slight overweight to japan for some similar reasons, central bank policies and better earnings, and and we continue the like emerging markets. >> even -- normally rising rates are just bad for emerging markets. >> yeah, i think normally you would. but look howa emerging markets have behaved throughout this environment that we have had with rising rates in the u.s and they are holding up fine we are starting to see a dollar transition every market is different. you are starting to see consumerism taking over. and the dollar is more of an effect for emerging markets than

it's been historically i'mel getting a deal with valuation and i like 4 to 5 gdp growth. >> we will leave it there. jim paulson and mark eyeball. >> do we know these guys did we borrow these images? >> rick is at the bond market. are people dying to lend money to the u.s. government what's demand like >> anybody who lends money to any government we have to put them on the couch. that's a different discussion. this one is $35 billion five-year notes. we haven't had $35 billion since january of '16 more since august of 2010. the yield at a dutch auction, 2.37%, i gave it a b minus in terms of demand straight up on eastern. there were good components the pricing was tight.

2.49 bid to cover pretty much just a smidge above ten auction average. the directs, solid directs, 13.7%. best since july of 2014. which means dealers took a less than aggressive amount of 26.2%, which is pretty good so b minus we still have $29 billion in seven-year notes tomorrow to complete $96 billion in supply like it's nothing, right tyler, back to you. >> thank you very much rick. comcast, the parent company of cnbc trying to top box with a $31 billion you bid for bryn sky. julia boorstin joins us with more. >> reporter: comcast is challenging a lower takeover bid by 21st century fox which already owns a 39% stake in sky. comcast is looking to buy a piece of those assets that disney is getting as part of its fox takeover

comcast may go, its offer at 12.5 pounds a share official saying that sky would be comcast's platform for growth across europe. comcast ceo brian robert saying on his earnings call this morning that the deal is an opportunity but not a necessity. >> in the question of scale and looking at the future, again i don't think we have to do this i don't think international is broadly is a strategy. i think it is a unique asset in sky's case that fits well within the mix of businesses we have already got and is aligned with our existing strategy of integrating content and distribution. >> comcast higher offer prompting sky to withdraw its recommendation to share holers to support fox's 10.75 pound per share offer. now, fox responding that it quote remains committed to its recommended cash off for sky announced in december 2016 and is currently considering its

options. comcast, meanwhile, in its earnings call laying out the synergy potential of the deal, how the two combinedcompanies customer base would allow them to invest more in programming and innovation it will be interesting to see what happens next. >> julia thank you very much. shares of twitter getting clipped. stock jumped double digits after their earnings came out of we will tell you what is sending the stock lower by nearly 5% today. >> plus facebook and amazon both down 4% in week. how much have mark zuckerberg and jeff base owes lost? i'm sure you are going to feel bad for them when we tell you we will have those numbers next on "power lunch.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig-

really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "power lunch. modest declines right now. let's check in for a market flash. >> not so modest declines. shares of lending club down more than 11% after the federal trade commission charged the company with allegedly deceiving customers. the ftc saying the company falsely promised consumers they would receive a loan with no

hidden fees when in actually they deducted hundreds perhaps thousands of dollars in up front fees the company said quote the ftc is wrong and we are disappointed it was not possible to revolve this matter. still shares down 11%. >> more than that now down more than 3. twitter is on pace for its worst day since march. the to be popped double digits but that took a turn after the ceo expressed concerns for 2019. it gave up that gain and is down 5%. facebook reports after the bell the stock struggling since the cambridge analytic data scandal leaving some investors if they should unfriend it let's bring in mark. do you want any impact from cambridge analytic and the

results we are going to see this afternoon? >> probably not. people will be looking for a negative inflection from the ad revenue growth we don't think we will see that negative inflection. then they will look whether there was an impact on users the company number is 184 dau, daily average users in the november december. expectations are that will be flat or down because of the cambridge analytic scandal and the pressures around it. init's even whether that's flat or down. that's going to a key stock driver the third thing to keep in mind is the operate, he can pens growth i think they are going to tighten up that range and look for 60% opex growth >> what does the stock have to do this afternoon to trade positively if anything you have seen what happened with a bunch of stocks already this quarter.

that was supposed to be the quarter that earnings growth helped offset all the worries about rising interest rates. don't worry, stocks can move higher, et cetera. one after another, industrials or major tech, investors clearly getting worried whether or not this is peak earnings, whether or not this is going to be good enough what does facebook have to do this afternoon to trade positively >> for the stock to go up you would need to have in material deceleration in the revenue ad growth rate. you need it roughly in line. the monthly average users need to continue growing in the mid teens and the north american dau to be flat or up and maintain expense guidance for the year i don't think there is downside in the stock i think a lot of the fears are are priced in. this is close to a market multiple for what we think is premium growth for the stock to trade up i don't think it will be until further into the year until people determine there is no

issue. >> do you expect those numbers the monthly average users and the daily average users in the u.s. to go up or are they going to take a hit because people are more wary of using their facebook to the degree they did. i think the street, the market is expecting those daily average users in north america to be down this march quarter. i think it's more likely they are flattish and i think there is a tail possibility there is modestly up. i think either of those latter two scenarios that would be a positive catalyst for the stock. again, i think you haveto wait three months because people will say are we going to see an impact next quarter. i think the stock has valuation support. this is our number one pick in the large cap space. this is one of the best entry points we have had on facebook in years. >> you didn't mention user engagement isn't that a worry aren't we finding out that people are spending less time on

facebook because of the changes with the news feed wouldn't that be a signal that some of these problems are actually playing out >> yeah, it could be now, that shoe started to drop last quarter that's when the aau metric in north america declined sequentially for the first time. so the fear is in the stock somewhat the question is whether it's going the detearior it a this quarter. if it holds where it is, the engagement level, the dau metric, if it holds, the stock is fine and could move up. >> trading 22 times next year's earnings, 2019 thanks mark. the recent slide in the so-called fang stocks is cause costing big names big money. but zuckerberg is going to be all right. >> smallest violin but the fang drop has taken a bite out of the billionaire welt the five founding billionaires of the fang stocks have lost a

kind $38 billion in north worth that's call to the gdps of serbia and bahrain larry dropped $6.7 billion, sergei down 7 6.6. amazon's jeff bezos lost $12 billion in wealth. there were 120 people in the world who have $12 billion or more that $12 billion is less than 10% of his net worth he is still the ripest man in the world with $122 billion. now facebook's mark zuckerberg is the biggest loser his net worth has dropped $13.6 billion this year. he has dropped to seventh place on forbes. sixth on the bloomberg list and he used to be fourth there is one gainer around the fang founders. reed hastings. his net worth increased by $580 million bringing his net worth to 3.3 he is moving up the ranks but he is still only 745th in the world because he owns less than 2% of

netfl netflix. >> we will get a live report from the beijing auto show and get a look at a cool concept car. >> artificial facial recognition. check this out this is a concept car. look at the display screen facial recognition opens the door then when you look at the artificial intelligence incorporated into the concept vehicle this is the future of automobiles. it may look like the cars and trucks that we see on the road today but believe it or no tt,he smarts behind the dashboard is what the future is all about

china could be a huge market for tesla. but is the company willing to do what's necessary to make it big there. >> phil lebeau is live at the beijing auto show. hi phil. >> hi michelle, a lot of those questions will be answered on china's rules towards joent ventures but make no mistake, electric vehicles are number one in the world. by far, china leads the world in sales last year. it is more than double the number in europe, well ahead of

the made to. japan is in fourth place tesla, 17% of its sales last year were in china 14,000 vehicles. it has discussed putting a plant in this country. the decision happy been made partially one reason is likely because they don't know what the country's policy is going to be regarding joint ventures there are, however, a number of local companies gunning for tesla when it comes to electric vehicles chintu was showing an electric vehicle concept car at the auto show there are 26 electric vehicle companies here in china. so guys if you look at shares of tesla -- they report earnings next week, i know a lot of people like to say hey eventually tesla is going to sell in china. it's going to be a huge market the potential is this but there are hundle r hurdles and a lot of competition. >> thank you very much, phil wham is it there, phil.

>> late night. >> 1:40 or 1:30 in the morning 12 hours ahead of you. >> the crowds are a little thin right now. phil, thank you, good luck, get some sleep, my friend. >> and happy birthday. >> oh, happen birthday, phil. >> thank you. >> i'll get you a car for your birthday. tim cook is about to meet with trump at the white house. they do a lot of business in china. surely tarves and trade will come up. immigration too, we suspect. plus the to be is under pressure the dow want worse if not for boeing that stock soaring on its earnings beaand t outlook. how much higher it may go from here lot more. lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. what's in your wallet?

i'm sue herera french president macron speaking before congress, urging the united states not to retreat from world affairs but rather to embrace its historical role as a global military leader >> we can choose isolationism,

withdrawal, and nationalism. this is an option. it can be tempting to us as a temporary remedy to all fears. but closing the door to the world will not stop the evolution of the world >> in a tweet, former president george h.w. bush is thanking houston for its professionalism and objects care during the memorials and services of his wife barbara he made no mention of his own health he has been in a houston hospital since sunday for a blood infection my google is launching a gmail update the focus is on increasing the safety and security of the inbox. the most talked about feature apparently is the confidential mode which allows users to set an expiration date you are up to date that's the news update this hour michelle, back to you. >> thank you, sue. just this hour, self ron evacuating executives from venezuela according to reports

sources familiar with the matter tell roid reuters chevron asked others to avoid the area this follows the arrest of two chevron employees after they refused to sign a contract for furnace parts with the country the workers may face treason charges over the dispute chevron says chevron has an executive team in place in venezuela and our operations continue chevron is the only u.s. oil company remaining in country most exited the country as production has plummeted to new lows the inability to pay bills and the government's habit of appropriatiating property. >> not a favorable business climate my major averages are struggling let's give you a margaret check here we were off the lows of the session right now. dow is still down less than .2%. boeing is the biggest contributor on the up side

ge is the biggest loser in the dow. the company meeting shareholders today. financials are the biggest drags, consumer discretionary and materials are the best performers. for more on the big names moving on earnings let's go to dom chu. >> industrial stocks are trying to find some positive territory here defense contractors in particular are playing a very big role in that market story around the sector overall. we'll start with the weakness in shares of general dynamics, the company behind everything from abrams tanks to nuclear attack sub marines. reported better than expected profits but sales that anioly missed combat systems were a positive but the gulf stream jet division was a laggard due to lower amount of deliveries of larger cabin private jets general dynamics, moved off of its daily loez.

they beat profits and raised full year profit exceptions. we will ends on boeing the single biggest upside force in the dow today the commercial military and aircraft maker posted better profits and sales and raised its guidance as well. >> let's talk more about boeing. joining us to to do that is courter copeland good to have you with us you have seen this stock which has had a choppy first quarter this year moving from 340 today up to 500. how soon and how are they going to do it. >> look, up this quarter is another data point in what is a major transformation to company. obviously they are supplying airplanes into a dloebl marketplace that is robust and healthy in the rate of growth we are seeing passenger travel continues to grow at 6 to 7% rates. you are supplying airplanes into that market. on top of that boeing is seeing their margins expand from 7% for

40 years to 10% last year. they guided to 11% raised that this quarter to 11.5 they have an ultimate target of 15%. we think they can go higher than that when you have a market growing that robustly and a business on top it of generating cash and deploying that cash it is easy to see a path to higher prices. >> so far the only hair ball in the mix here has been the possibly of tarviffs how dot factor that into your thinking or is the company clicking so well you play it past it. >> you have to take the view of whether or not the end game this trade war is going to be absolutely damning to not only boeing's business but to global trade or to the. we are willing to make the bet

that it's not. when you look at arrow space and aircraft demand china needs these airplanes. there is no place to get the demand that they need to fill but boeing boeing is the largest exporter in the uncan are they going the get rolled up and used a as a pawn in the negotiations because of the influence they may have on both sides of that debate i think the answer is yes, you have to consider that. frankly we have been telling clients this is the sort of overhang that you should be buying into because as this is happening the business is transforming into something significantly better than what it has been in three decades. >> investors were spooked by what they heard from 3m and cat pitter about rising costs and inflation. what would all of that do to boeing >> the best part about boeing, et cetera a long cycle businessly you have an opportunity in contract to put in escalation clauses. boeing is not going to have the

sort of exposure to the type of commodity price hikes you will find in other names. they have backlog that stretches seven years into the future. they know what that looks like the opportunity is for them to go out and perform better. that's what they continue to do consistently. >> carter, thank you very much carter copeland. medicalious research. >> boeing stock propelled mr. wonderful to the stock draft vickry last year one of the reasons the market did so well. but that's in the past the 2018 stock draft is 20 hours away who is going to take boeing this time up next, tim cook is going to head to the white house for a closed door sitdown with the president. what will they talk about? we'll talk about that when "power lunch" comes right back

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as you can see there markets drifting into the green. but exxonmobil is at its session highs announcing it's raising the quarterly devin. exxon shares spiking to their best levels of the day up by about a percent that move higher comes despite the fact we have a more mixed oil picture. we are just now seeing brent and wti crude prices drift back towards the green part of the session. oil price is certainly in focus given some of the recent weakness in prices. >> any moment maw, president trump is expected to be meeting with apple's ceo tim cook. it is a closed door meeting. ayman jaffers is at the white house with more. >> reporter: it's more than just one meeting here in washington tim cook was with the president last night at the state dinner for emmanuel macron, the

president of france here at the white house. then this morning he was at the white house for a meeting with larry kudlow, the national economic director. our cams re caught up with him as he let the white house complex, walked across the street to the u.s. trade representative's office, that's where robert lighthizer works. presumably more trade discussions there underway with the u.s. trade representative. and the president be that tweeting about this in anticipation of his meeting in the oval office. he said looking forward the my meeting with tim cook of apple we will be talking about many things, including how the u.s. has been treated unfairly for many years by many countries on trade. the president putting down a marker for what he sees this meeting being as and tim cook has been trying to position him as something of a mediator between the u.s. and china in the recent flap over potential tariffs on chinese good here's what tim cook said when speaking in china about this

subject. >> i have seen over my lifetime is that countries that embrace openness, that embrace trade, that embrace diversity are the countries that do exceptional and the countries that don't don't. >> sarah, that was tim cook in march in beijing we will see if he delivers the same message to the president today here in the oval office. back over to you. >> thank you ayman jaffers at the white house. let's talk more about this meeting and president trump's relationship with silicon valley ina freed joins us and jimmy pathekukis apple is important in china. it has to be a topic of conversation number one, right >> it's of concern to apple for a bunch of reasons

one you mentioned, obviously china is huge potential growth market for apple, and for the u.s. tech industry broadly also that's where all the i-phones that go all over the world are made annell particular. but there is entire tech industry doesn't want to see the trade war escalate. >> when i heard that sound byte from tim cook i thought he could be talking about the united states but i also thought he could be talking about china companies that embrace openness and diversity are the ones that do the best. and they have struggled with that as well. >> they have depending how you look at it, it could my to either country i think what -- listen, tim cook is sort of a -- he is a draw bridge down, not a draw bridge up he wants openness. he wants trade what he should be i think concerned about, at least from the u.s. perspective is that when i talk to republicans and people from the trump administration, there is the idea that we are now involved with a digital cold war with china for technological

supremacy. they there are have kind of a separate enter threat with china. and they should be worried that the next step also a separate sort of hardware ecosystem in that environment you might not be selling too many i-phones to china and they may not be building it. that's what i would be worried about with i were tim cook, a technological cold war, the idea that we are locked into a technological cold war with china. >> the president has a love/hat relationship with the tech companies. is he likely to listen to someone like tim cook as an adviser had he it comes to negotiating trade? >> i think both sides have something to get out it otherwise they wouldn't keep meeting. tim cook met a number of times with the president, bill gates

as well. president trump meets with them. and the tech industries have a lot of things they would like to get out of this administration even though by and large they haven't, especially on social issues gotten many of the thing they want. they had hoped for on economic things they hope to be doing better tax reform helped, but the trade war threatens to disrupt their business i think the tech industry so far haven't gotten the economic piece that they thought they were going to get. >> jimmy, let's talk about immigration. silicon valley generally has favored a more liberal approach to immigration than the president has. how likely is this going to be to come up as a topic or a point of contention? >> certainly when i talk to tech people, you know, the issue -- you don't have to have too long of a conferring with public

policy before they start talking approximate immigration. they think it's super important. economists think it's super important, theically to have as many smart people from around the world come to the united states reminding the president how important high skill immigration is to the united states, how important it is to silicon valley how important it is to our entrepreneurial ethos that's good because he is not going to hear much of that from the republicans in congress who are sort of focused on tamping down immigration. if he can make that case to the president inthat's pretty important. >> good to have you. ina, jimmy, thank you so much. with interest rates creeping up, what could a 5% mortgage mean for the housing market? the ceo of red fin will join us to talk about that. >> hello, this is mr. wonderful kevin i it's bethany i'm excited about this year's stock draft. >> i am the reigning champion. >> your win last season was impressive. >> it was pretty wonderful.

>> all good things must come to an end. >> you know, beth me, you can learn from me grass hopper >> grass hopper? >> always be prepared. there is no off season for me, i'm always doing my work, indog my reference and bringing up the best names that's why i win all the time. listen, here's what you should do - until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

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

load up on the wine. global production fell to its lowest level in 60 years in 2017 blame poor weather in europe for much of that production remained nearly stable in the u.s. i'm surprised at that, given the wildfires in napa. the u.s. is the fourth largest wine producer in the world >> i wonder who the others are >> italy, spain. >> higher prices with lower supply you would expect. mortgage rates continue to fall how big of a threat are these mortgage rates for the overall housing market let's ask the ceo of red fin

nice to see you again, glenn, thanks for joining us. >> hi, how are you >> i'm good, i'm wondering what kind of impact you're seeing, we have low supply, low inventory, higher prices, and now, rising mortgage rates add it up and what does it mean for the real estate rates. >> only about 6% of home buyers would pull back from the market if rates increased above 5%. that's not what we're worried about. what we're worried about is really just the dwindling supply of homes for sale. inventory is down 12%, home sales are down 4% this year. home buyers can't find anything to buy the only market thatis not rising is oklahoma >> i wonder if that cools down,

though i know you say you don't see an impact of higher mortgage rates. i wonder if that could cool down a bidding war just because of that sticker shock with those higher rates >> that may be healthy the demand is down right now you see 28% in denver over the last three years if there were two buyers more than 3, seeing price increases year over year nationwide, that is not sustainable american workers are looking for affordable homes right now, wherever they can find them. it's become a real crisis. rates may be one factor, but it won't be the most important.

most home buyers buy the monthly payment, not the rate. they look at that most especially how many does a monthly payment on a typical x sized mortgage if rates go up. >> i wouldn't want to quote myself on that it could be a few hundred dollars if you're looking at an expensive home i think more americans are looking at renting because they're comparing that mortgage rate to what they would pay in rent it's a real bite but because home prices move so fast, it can be a toxic combination when rates go up as well interest rates have made those rates so palletable. it gets really hard, you're paying a few hundred extra a month and that's disposible income you would use on --

>> wouldn't you expect prices to come down? >> i'm not sure they're going to fall, because inventory is so low. >> we think the rice increase is sustainable. i don't know that they'll actually fall, maybe they will in a few markets but i wouldn't expect a precipitous decline. we don't see enough homeowners who are over their skis on equity >> let's talk about your stock, one of the hottest ipo's last year, now it's down 2% it's gotten hammered this year, down 30% what do you think is lindh that? i know you're trying to tell them it's a tech company, not a real estate brokerage. >> no, it's both it's both. >> we wouldn't want to be priced as a technology company, we don't have the gross margins for that we wouldn't want to be priced as a retail company either. this company is both

that's what makes it so great. if the stock is down 30% that's not something that i can really be worried about day to day. week to week, what i'm worried about is giving consumers a better deal, selling homes for half the price, and selling them for a higher price out on the market not that worried about the stock price right now. i think there's a shift as you have investors moving. there's going to be more volume in the stock >> come back and talk to us about housing in the stock glenn, thank you, nice to see you. >> always a good smile >> a new recommendation today to get rid of the one and done rule for college baublg players the only problem is that it is an nba rule, eric? >> good to see you condoleezza rice led this committee for college basketball started after the fbi investigation in the bribery allegations about wiretaps, coaches that got indicted for all kinds of financial adviser

scandals they were asking everyone else to fix what they were doing. she asked the nba to get rid of their one and done rule. she wanted to keep all the shoe companies out of youth basketball she felt like all that money was coming into the support and corrupting everybody. everyone else is making ncaa basketball bad she recommended they have stricter punishments this is going to start a big conversation about how pro leagues, school leagues, shoe companies, players, agents, parents, all -- how do they get along. >> if coaches get busted for what, recruiting violations? >> paying money to get recruits. paying investment advisers to move recruits around >> the one and done rule, that's super interesting. how many teams do we watch during the playoffs?

don't fall in love with that player here there's for one year and he's done. let's prevent them from drafting, give them a year to scout and give them a sense of who's a good prospect. in two months this guy's going from high school to the pros circular firing squad, that's what she said, everyone is blaming everyone else. >> thanks. >> which matters more to the stock market, earnings or interest rates, there's our great new graphic we love. >> you're going to see this a lot. >> we spent a lot of time building it. tug of war over your money right now. which side's going to win. next on power lunch.

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the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ here's what's on the menu. earnings coming in strong, there's the threat of rising rates casting a shadow we're going to break this market tie straight ahead >> crazy commodities, aluminum prices sored in the past month u.s. sanctions against russia, fueling supply fears

we'll talk about what's next for this hot trade investors bracing for a flood of earnings after the bell. which i poet what i is among them should you buy ahead of the results. power lunch starts right now >> i'm sarah eisen we are in the green, the dow is down more than 200 points earlier, briefly dipping into correction territory higher, all three averages across the board rates are dominating the conversation, the benchmark yield hitting 0.33% today. check out some of the boigest losers on the s&p 500, trip adviser, capital one, ge and edward life sciences all leading the declines, tyler? >> let's tell you what else is happening right now, a third of the companies in the s&p 500

have reported their earnings so far, according to follow son reuters, just over 80% have beaten estimates 10% have misses. comcast, formerly submitting a bid for the u.k. broadcaster sky, that sets up a showdown with rupert murdoch's fox. and the ceo of nasdaq says she's open to becoming a crypto currency exchange. once the regulation is smoothed out and the space matures. bit coin down the way. let's go to tom chew right now >> we're watching what's happening. there have been some headlines over the last couple weeks, the fda may reexamine the safety of one of its drugs tied to parkinsons this is the only one approved to

treat hallucinations associated with the disease now the fda has potentially weighed in on this, we're watching for these reports, digging into a little more, we wanted to call your attention do what's happening with the shares as you can see they're moving very low right now toward their session lows, down by more than 6 or 7%. >> it's notable. thank you. >> back to the markets pasani and sentolio. are the good times over for the markets? what do you think? >> go ahead, that was directed to you, are the good times over? >> i don't think the good times are truly over the market is struggling with this idea that perhaps we reached that moment of maximum ease and happiness, where all the good news was kind of getting directly filtered into stocks positively. right now, as you described, it's more of a push, paul, i don't think we right now feel like we have tremendous amounts

of economic global momentum that can offset the idea that maybe profit margins are peaking, and, of course, rates and inflation are in this higher range to me, that's what the market's been struggling with in a quiet way, really hanging around the range in the last couple days >> maximum ease and happiness. >> it seemed to me in january, that's what we had >> here's what i'm happy about today, boeing did not talk about peak earnings. remember all these concerns about commodity cost inflation boeing made a point in saying, we're not seeing dramatic cost increases right now. a lot of other companies have said they're concerned it's good to see that. the market is getting segmented. commodity producers have outperformed this year, your oil companies, for example, your steal companies have outperformed and the people who are consumers of these commodities that are out there, the consumer staples

companies, the home building companies, they've dramatically underperformed there's a little by fur indication in the market people who have done rising mortgage rates companies who are interest rate sensitive are losers throughout the year there is a segment taking going on in the market >> i think it's worth keeping in mind when we see this reaction pattern in the first part of earnings season, it doesn't always carry through the entire whatever, three or four weeks of earnings season, i think the pendulum swings. now that everyone was braced for these industrial companies, they sell off after the good news, boeing's up a little bit today it evolves >> it shows you what having a good guidance and forecast will do for the stock, which is higher scrutinizing those results mike and bob, thank you. >> okay, well, as you heard, rising rates have an impact on the markets. what about the economy steve liesman with a breakdown

on that. steve? >> part of what the market is reacting to is how these higher rates are working into the economy. we're talking about the rise in the ten-year, the rise in the treasury market. the ten-year treasury, 303, that's resulted right now in the average 30 year mortgage around the country, 4 1/2%, that's the highest since march 2014 your average auto loan up near 4%, that's the highest since may 2012 and then over here, credit cards, that's the highest all time, credit card.com's data, 16.68% their data goes back to 2017, we look at how much change there's been since the low up 70 basis points on the treasury, about the same for homes, a little less for auto, as you can see, a little more spread compression in there, and then over here, credit cards, they're up a lot 1 1/2 percentage points from their low. another area that markets are sensitive too, corporate

borrowing. here's your treasury, look what happened to your corporate yield, your aaa, up by 60 basis points and nearly 70 basis points for triple b talk about a tug of war. instead of rates and earnings for the consumers, it's rates on the one hand, and then the tax cuts and higher wages on the other. that's something that's going to take some of the shine off of the good news when it came to tax cuts tyler? >> thank you very much more now, earnings versus rates, tax cuts, economic growth and the like, a battle for the mind of the market, good results on earnings for the most part there they are again they're fighting over there. fears of rising rates, holding back stocks. or at least giving some investors pause. let's bring in karen kafanov with voya investment and nick reich i'm told that we have bull and bullier here today both of you think things look

pretty good. i guess the question is, how long can the music keep playing? i don't think anybody disagrees that we have to be somewhere in the later innings of a bull market or maybe you do disagree. >> i do disagree i think the tax cuts have breathed new life into the bull, and earnings are going to win, they always do win, and anybody who thinks 3% is high yields, they may need to go back in a time machine we're going to have growth and higher interest rates, and that's going to be good for stocks the only difference now is that things aren't going all up in a straight line. not every stock gets a trophy, investors are going to have to get used to that, that's normal and that's okay. >> i'll play marty mcfly here, and go back in a time machine, to a time when rates were a lot higher, and by the way, in the mid to late 90s, stocks did just fine with rates higher can they continue? >> it all depends on where the

expectations are and where they're going to go from here. without the earnings data, i would be wanting to sell too that's going to hurt future profit margins so you sell stocks let's take a look at what's going on with the expectations, not the first quarter numbers, those are fantastic. that's not a reason to be bullish. our reason to be bullish is 10% revenue growth we look at the expectations for the second half of this year, they were high they're holding up, and inching higher here, we have fears of syria, trade wars, rising inflation, rising interest rates, we look at the expectations for the s&p 500 for the third and fourth quarter, this week, last tweak, the week before that, they're inching higher >> so your take on the bull market, the problem with that is, most of the s&p 500 sectors this year are negative some are down double-digits, you have these blowout earnings in some cases like google, like cat ar pillar, and some talk that

wall street doesn't like, you get a sharp selloff on that news, does that feel like a bull market >> it feels like more of a normal market, we get used to an artificial market where everything went up no matter what investors are going to have to start to parse out the data. we see quality earnings, we see revenues that are going up, investors are going to have to look for those opportunities where there are quality companies and buy those stocks, it's not going to be throwing darts at a dart board and everything goes up, i think this is a bull market, but remember, we're coming off of years of stimulus, and artificial back stop with the fed just stepping in every time there was trouble. so we're going to have to get used do this vol tellingty and really having to work for the returns. >> sure. >> we heard that from a lot of folks, get used to the volatilitity i don't know, we'll see. 700 point moves all the time, it makes you a little crazy what do you pay for this market,

though, when interest rates are rising it compresses multiples naturally. >> we know the multiples have kprised as the earnings expectations were rising for the first time in 7 years, what investors are paying for every dollar of earnings is down to 16 times, that's really good. it feels lying a bear market to me where good news is bad, and bad news is worse. there's a lot of fear right now, we're not seeing it justified based on the actual data coming in from the company guidance we look at the customers that are reporting -- >> we're trading at 16 times, you're saying that's a depressed multiple or we can see an expansion again at this point. or you have to get earnings to rise >> it's come down from 18 1/2 last year, the earnings estimates were falling this year the earnings estimates are rising, and now the prices are falling.

the one thing that makes me optimistic here, i look at the second quarter numbers here, we're seeing 42% of the 155 p company that is have reported on the s&p 500. they're already high and so companies would be guiding lower right now in the second season. and they're not doing that so that tells me, we're going to have 20, 25% growth in the second quarter, and we're going to have 25 to 30% growth in the third quarter, we're not at peak growth yet >> good to have you, here's what's coming up on power lunch, the federal debt projected to balloon to $33 trillion in the next decade. congress and the white house looking to avoid that about but at what cost amazon wants to connect your kids to alexa. should parents be worried? come on, give me your best >> the cast of staten island hustle stopping by to talk about the state of their business. all of that and more coming up

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. the u.s. economy is growing, but so is the federal debt and at a much faster clip. total federal debt could top 23 trillion up from 21 trillion this year. that has some members of congress, not to mention the white house more than a little concerned. now, some of them want to clip some of the spending included in the bipartisan appropriation

bill passed back in february one of the items the gop has targeted is especially dear to our next guest congressman, welcome back, always good to see you we're talking about revisions or recisions to the bipartisan spending bill that was passed. let me broaden the conversation out. unless we do something to reign in spending. the country is on really an unsustainable and really quite menacing debt imagine, isn't it? >> completely agree with you that's why i voted last week for the balance ed budget amendment and why i said in december when we were talking, that the idea that the tax hike bill would add a from and a half dollars to the deficit was outrageous, there's a lot of us who have been talking about fiscal responsibility for a long time, and we seem to have forgotten about that with some people

here >> it grows at a high rate, it gets up above 100% of gdp to levels and the amount of money that the government would be spending just to service the debt would take something like one out of every five tax dollars and that crowds out expenditures >> you look at the path as heading toward 75 to 80 cents on the dollar, and quickly, so we have to get ahead of this. >> the white house, and some in congress want to go back and clip programs. one of the ones is a tunnel that would link new jersey and new york it is in that bill for some 5$50 million, i believe and you think that would be exactly the wrong thing to clip. why? >> you don't go after investment, especially something like a tunnel that's crumbling, that's essential to new york and new jersey, and the whole regional and national economy. if the tunnel shuts down, and these are two tunnels, one goes in and one goes out, they're both literally crumbling

it's a 100 million dollar a day hit to the regional economy in the northeast, if this goes down the whole financial industry would be affected. >> if the tunnel were not useable? >> that's exactly it >> nightmare >> a nightmare, and by the way, a lot of experts, including the people at amtrak who run it, say within five years, one of the tunnels will have to come down, soy don't know what we're going to do about it unless we fix this what i find particularly outrageous, some of the folks who said, despite this agreement that we came to, who's a friend of mine, and i said to him, now, i don't understand, you think we should go back and take away this investment? and, of course, north carolina where he's from gets 1.41 for every dollar they send the federal government now he wants to turn around and say, yeah, you shouldn't get any return on investment >> this is going toward salt, i want to tell you about something we had on the air the other day. what is going to happen for 2018, because the rates are

lower for longer, at the income level about the loss -- >> my great fear was that as a new jersey resident. i was going to see my taxes go up in 2018 by an immense amount, because i lose property taxes which are the highest in the country in new jersey. i lose the ability to write off income taxes which are not cheap in new jersey, which you know. and i lose the ability to take miscellaneous business expenses. i thought i was going to have major money now subject to tax that wasn't. and my accountant said to me, that even with all of that your tax is only going to go up 2200 a year i began to question how devastating the hit was going to be >> well, if you want to pay my extra, you're welcome to >> in my district people come to me and say, their taxes are going up i don't know if you're

accountant is a magician we're getting crushed under this, and my taxes are going up, not down you have other places where they're now benefiting because they stuck it to us. >> do you know what participate of a percentage of constituents are going to pay higher taxes? >> when it's lower for longer, there are far fewer people who need to take those deductions. >> here's what we know, we know that mother than 50% of my district, closer to 60 itemized on their taxes, and they're going to take a hit. we know that moodies has put out that property values are already down in the state of new jersey. so we know the effect on people's pocketbooks already it's going to take time to see just how devastating the packet is going to be why are we in new jersey, new york, connecticut, these areas, california, steaking the hit for these -- these ploocher states keep stealing from us, that's why ted bun and these others,

who get $3 or more back for every dollar because they're living off of us in new jersey why are they complaining that we're making an investment to save our economy >> i've expressed my opinion tiresomely here. the money that is subject to tax by another taxing authority, should not be counted as income. because it's effectively a double tax we don't let that happen when a foreign country taxes our income >> let me turn to. >> we're trying this in -- in new jersey it's on the governor's desk now. i was talking about using the charitable contribution. >> so there are moves in new york, new jersey and other places to set up charitable funds or trusts into which individuals would pay their

property taxes and they would be able to claim it as a charitable deduction. do you think the courts would let that stand >> think is an issue i started working on in december when we first looked at it, we said, is this possible then we found a top tax in the entire country wrote a paper, showing us that 33 states, mostly red states were using the charitable provision and had been for more than 20 years now. the courts have ruled on it, i met with the acting irs commissioner about it, he admitted they're in a pickle on this one they've been using it for years. new jersey now, hoping in the next week or so, is going to allow towns to set up these funds, you can make a contribution to these funds. take that deduction if you itemize, even if you fall under the amt, you can take that deduction on your federal taxes, and the towns can give you up to a 90% tax credit on your property tax bill.

it's a way to fight back against what these other moocher states stuck it to us >> moocher states, i love that >> you have given us the phrase of the day >> still ahead, which companies are poised to profit from president trump's steel and aluminum tariffs kayla? >> reporter: it may not look like it, but there's been a varitable gold rush here, let's call it an aluminum rush, in port cities like these, as companies rushed foreign metal ris, the u.s. ahead of those taff we'll tell you what that did to the market on the other side of this break

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instant sculpture, the driver suffered only a few scratches. >> that's molten -- i want do say frozen aluminum. previously molten aluminum >> looks hard to move and clean up >> speaking of aluminum, over the last two months, the aluminum market has seen a dramatic price spike in the face of tariffs kayla has more >> around this kbend in the mississippi sits a half a million tons of alum numb. >> two years ago, the stockpile was small, but growing now its unmistakable, especially from the air. football fields housing aluminum bars and beams before tariffs and sanctions went into effect as outside supply dries up or

gets more expensive, prices here go up, helping commodity merchants profit, they sold this stockpile to glenncorporation recently in all it's three times the amount of primary alum newly produced and reported in the u.s. each year stocks will keep building up >> we think they will continue to stockpile, simply because the u.s. pays better than anyone else right now on the face of the earth. >> the irony is that global prices have recently dropped, but premiums here notice u.s. have searched, they've doubled this year alone, and remained high, so traders are benefiting while costs for manufactures are going up, that's one big inintended consequence of these tariffs, guys? >> thank you very much coming up, amazon wants your kids to connect with alexa

as long as they're polite about it if alexa gave better answers, i'd be more polite chipotle earnings out. what to expect next. o and got m. more? they've been saving folks money for over 75 years. a company you can trust. geico even helped us with homeowners insurance. more sounds great. gotta love more... right, honey? yeah! geico. expect great savings and a whole lot more.

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welcome back, dow struggling around the flat line on the one hand there's boeing, which is up nearly 4%. ge is down more than 4%. s&p slower by 4 points, and the nasdaq is slower by 24 points. placid the only drug approved to treat hallucinations and delusions. associated with parkinsons now, to sue herera, she has a news update. >> thank you very much good afternoon everyone. here's what's happening at this hour, the dallas police department mourning the loss of one of their own after a gunman opened fire inside a home depot on tuesday the officer died today from his gunshot wounding another officer in a home depot security guard were also

injured. >> we're asking that you continue to pray for the family and the dpd family, this is going to be a trying time for us, so we're asking for your support during this time >> boca raton mayor has dropped out of the palm county commission race after walking out of jail last night she's charged with official misconduct and misuse of official office among other charges. sean spicer back in the news unveiling a wax figure of melania trump at new york's madam toussauds. they are the first to display a figure of the first lady you are up to date, that's the news update at this hour, back to you >> it looks pretty good. >> it's a very good likeness. >> amazon's alexa, taking aim at your kids. deirdre is live in san francisco with that story. >> that's right, it even has a

please or thank you feature. call it positive reinforcement for politeness alexa will thank them for being polite there's a trade off free time on alexa, it gives parents more control, and it delivers educational content and games, the announcement this morning didn't even mention privacy protections, so we asked, and amazon told us it doesn't plan to gather individual data on kids and skills developers are prohibited from collecting personal information on kids, the company will still be getting a ton of collective data in children, it's not clear if or how they will use it, amazon's new device joins an expanding space like facebook's messenger kids, netflix kids profiles, apple family sharing and google's youtube kids. thighs often have less advertising, but they also raise questions about protecting

children's data privacy. this is the subject that's getting more attention these days in light of facebook analyt analytica scandal. >> what do parents use them for? i know screen time is a big thing with parents you're not allowed to have them in front of their ipads, what about alexa. >> you'll see this soon, when your kid starts to hear alexa using a timer, they start asking for things too we're going to create a separate platform, give kids their own echo, so they can do things like ask how many planets there are, play kid friendly music or games. the content is going to be tailored differently, they're going to have a lot of skill developers to taylor skills, specifically for children under 13. >> what if they ask for

inappropriate things or ask inappropriate questions. >> exactly >> i like the -- they're not going to be able to access inappropriate content, that's the idea i like the idea that they're going do ask for please and thank yous i know i have a toddler at lomb, when he hears me ask alexa for things, i try to say please to train him. >> i can't wait until my kid talks. >> alexa can hope with homework sometimes. when was so and so born, that kind of question shares of chipotle up 2% after the bell today the stocks have been outperforming their competitors. stocks up 18% earlier this year. brian nichol was leaving taco bell to become the burrito chain's new ceo? what's on the menu for the first earnings report? let's bring in senior restaurant analyst. thanks for joining us. what do you hear that nichol's

doing in terms of a turnaround, this company has done better, but still, has a long way to go to get back to the glory days. >> it absolutely does. and i think when you look at the potential of where the margins and ultimately the earnings have been, same store sales trends noor the company in the past, they've been dramatically better than what we're currently expecting. my belief is that what brian needs to tell the market is plant the seed, the seeds of change, the things we can begin to see the potential for the margin improvement, for the same store sales improvement, and at the end of the day, it 125r9 with sales, he has to give some level of confidence, otherwise the stock may drift from here. >> chipotle has been a tough one to figure out, always trading at a premium to other restaurant stocks, that has come down because of the food scare that they had, the safety scare, and then the inability to make back the sales, is it a fair

valuation right now, is it cheap zm. >> it's one of those things where beauty is in the eye of the beholder, there are some who believe that the valuation is at a relatively high level, the earnings numbers are depressed dime will tell whether that is the case if you look at its valuation, relative to its larger peers, this is a company that's a peer operator where there's more positive and negative operating leverage within the business model relative to appear -- it's trading in line next 19 at valuations consistent with its larger peers, whether or not that's fair, you know, i think the key thing is they have to beat expectations going-forward. >> how have its more direct competitors in the mexican food market responded and how much have they been helped from chipotle's troubles. >> i think there's been a lot of

speculation around that. and we have covered qdoba for example, and we know some of the trends around mows, i don't think there's been any strong. where has chipotle sales gone, i don't think there's any one definitive answer for that there's some speck lace that some of those sales may have drifted into the fast food names. whether it's mcdonald's, burger king, et cetera. >> what does this company need a better marketing pitch how do they bring excitement to a brand where they sort of lost the magic touch and the excitement overall it was about health ingrade currents, that doesn't work any more >> it's steal. over the last decade, there's been very little real menu innovati innovation the company has tried to make some inroads in there some of the bro teens that hasn't had a dramatic impact. the marketing is not the contributor we would have expected for the kind of scale

this company has this is where i think brian and the new cmo can make a difference in their business improving the product innovation, the marketing support, and giving customers a reason to come in one more time than they have in the past >> queso was a bust. >> he was supposed to turn things around. he did come up with live m as, so marketing is his thing. thank you for setting us up. tune in tomorrow morning, our kate rogers will be sitting down for an exclusive interview with brian niccol, that's coming on sidewalk squawk on the street and still ahead, they haven't met an idea or product too farfetched to invest in. the cast of staten island hustle joins us live here in the studio next gentlemen, welcome

you're doing me a favor. >> you want to sell it for six grand? >> number one doesn't start. number three >>. >> you call him a mechanic >> he hasn't been inspected since 2011 >> what are you -- >> are you kidding me? >> bees, bumble bees, bees, i'm allergic to bees >> that was a clip from staten island hustle. follows five friends, looking to make it big, by investing in new ideas no matter how fetched they may be joining us now, the stars of the show gentlemen, good to have you.

>> does this show come with subtitles? >> you should be able to follow along. >> how did this happen how do we have four guys on from staten island doing a show, cnbc prime time, what brought you all together >> someone told me shark tank had a collision with duck dynasty and we rolled out. >> that's probably as close as it is. this is what my father-in-law does all the time with his buddies. the advice often is, don't mix money and friendship. >> you don't have money? >> we clown each other, joke, make fun of each other all the time so it's a normal thing we really got that out there now it's all about the business. how we can come up with new

ideas, to innovate, start a service. >> if you invest together and the investment goes poorly it's okay, you know that >> it's part of the game >> just like playing the market, right? sometimes you have a winner and sometimes you have a loser hustling is a way of life for us we don't just look at it as one deal we work on multiple deals. >> what's your best deal ever? >> my opinion is, it's going to be the sb-2000, the electric box you saw last week. that actually saves major money, places like this would have a lot of motors would save a ton of money the kids connect, which you will see tonight. and we also came up with, ron came up with it, why don't we do it for senior citizens as well we have the easy connect for seniors. >> how long have you guys known each other >> close to 20 years >> 20 years you guys go back

>> mike and i go back longer, probably 30 years. >> hung out in the same area, same ars, clubs, things of tha nature >> i'm the baby in the crowd >> baby huey right now about 400,000 we have collectively >> what's the most you put into everything >> we put 200,000 into kids connect right now. you. >> must have people coming -- >> people recognize you. >> that's how we got to shot. >> i feel like, you know, staten island. >> who's not going to recognize big ron especially >> a lot of people -- >> it's almost like a shark tank go to season 2, you'll see we have a lot more to offer them.

>> when w electrical products, we have people from the industry coming to us on that side, plus, everybody wants to know, because it's an emerging market, okay? >> the legalization of it, is that why you red it, or is that making the field too crowded >> as far as the electric box, it works perfectly, because in the cultivation rooms all the lights kick on at once the box takes the power surge by implementing its capacitiers, and it saves the spikes, we're helping the cultivators as well. >> we have to get to dominick. >> this is an opportunity. >> this is -- >> this is great >> we're going to speak to the powers that be here. >> you cut your lip shaving, right? >> i'm supposed to believe that? >> yes he didn't cut it, somebody cut it >> somebody cut it for him many. >> that's a deal -- >> i thought he ran into your watch. that's whey thought. >> that's an enormous one.

>> he's not getting paid for a shave for the next ten years >> it's great to have you on thank you so much. >> we're glad to have you here >> will you guys say my name, tyler. >> tyler >> thank you, tyler. >> tyler >> my family from long island, i didn't know my name was spelled tylah. you got it >> take it away. >> there's great food in staten island, mixed bag for chip stocks today sinking early, but making up some ground, intel getting ready to report tomorrow, what to expect from this group, trading nation is coming up next alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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we can keep all these emergencies small. and the fact that we can bring it together and effectively work together is pretty special. they bring their knowledge, their tools and equipment and the proficiency to get the job done. and the whole time i have been in the fire service, pg&e's been there, too. whatever we need whenever we need it. i do count on pg&e to keep our firefighters safe. that's why we ask for their help. time now for trading nation. check out the semiconductor stocks moving lower today and sitting steep in correction territory. this as we await reports from

qualcomm let's talk to boris. this has taken a turn. qualcomm down more than 20% this year >> a couple of reasons that's happening. one is the regulatory schlossbeslosthing. there's no hits anymore. you think about smartphones and desktops, there's no break through product anymore. because there's mature demand, i think you're not seeing any sizzle i think that's going to be a uniform story going forward. they're just not that much consumer excitement for demand for the products at this point >> michael, can the earnings change that? >> yeah, look. i don't love the space either. it's coming off a monster rally in 2017. it's still trying to find its footing. it has ridden the coat tails of

all these technology booms with bitcoin, with everything that's happened in technology and certain names will ride those waves in 2018, but it's going to be very specific names. as a stock picker's index for 2018 >> all right, guys leave it there thank you very much. with an eye on those stocks and for more market insights, head to trading nation online check please is up next. and now the latest from trading nation.cnbc.com and a word from our sponsor. >> a good first step of any risk management strategy is to determine the amount you're willing to risk on any given trade. some traders use the 2% rule where they try and limit their loss on any given position to no more than 2% of their total trading capital. need a change of scenery?

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and that is tomorrow 23 hours, 2 minutes, and 20

seconds away you are not going to be able to sleep tonight. >> i've never been part of a draft. anything like that >> look at this. there's mr. wonderful and bethenny frankel in the tug of war. it's three rounds of stock choices. 60 stocks they have. and that is the coveted bull trophy >> they're already trash talking. >> have you seen these ads all over each other. i wonder if somebody's going to pick facebook president it reports after the bell today. the bar for performance has been incredibly high. and there's been a lot of disappointment for this earnings season which was supposed to be the thing. remember don't worry, rates are going up, however, earnings are going up too. stocks could still move higher even as pes express. >> there's a lot of things going on whether it's trades or rising

rates, what have you >> so far? >> so facebook's higher for the day right now. stocks have made a turnaround during "power lunch. earlier in the session the dow was down more than 200 things are looking up for stocks we'll see about those after-hours earnings one thing for my check, please guys, kanye west is back on twitter in a big way >> oh. >> tweeting about all sorts of things what stood out to me was, he started talking about yeezy -- >> his clothing brand. >> yes he has this collaboration with adidas we have 160 positions to fill by the end of the year. yeezy will hit a billion dollars this year. it's on its way to becoming a decacorn, whatever that is we're trying to verify that. adidas doesn't break it out. i give kanye credit for helping adidas come back in the united states and make it cool. i don't know if it's a billion-dollar brand i don't know if he's higher paid

than michael jordan as he claims >> didn't he say he was going to be the biggest brand ever? >> very trumpian >> thanks for watching "power lunch. >> "closing bell" starts next. >> see you for the draft tomorrow this hour facebook, chipotle, visa, at&t coming up after the bell. >> earnings plus moves in the 10-year yield. we'll look at what's driving all this for you the dow swinging 260 points today. down 2 hurkss at t00 at the lowt we've also come back we're close to the session highs and "the closing bell" starts right now. ♪ welcome, everybody i'm kelly evans on an earnings heavy day. >> a