square garden the real estate itself there should be a tax discount, but that's too much. great earnings yesterday i like msg. >> good stuff. i want to note, again, speaking of fishing, stocks are fishing for positive territory look at the dow. >> it's easing. >> see what's going on at power lunch which starts right now thank you, scott here's what's on the power lunch menu peak earnings slowing growth, rising interest rates, are the bulls losing the argument? the tesla tantrum. elon musk's bizarre conference call with analysts taking down the stock today. should investors buy on the dip? shark tank's mr. wonderful is going to weigh in and a little food company that's got him smiling. power lunch starts right now

and welcome to power lunch your money making a comeback this afternoon the dow is down more than 390 points at the low. more than 2/3 of the company in the dow correction levels or worse. the s&p falling below its average. yields on the benchmark ten year treasury note hitting 2.92%. lowest level since april 20th. the german ten year booned at its lowest level since april 18th that yield hitting .52%. gold trading above its 200 day moving average things have turned around in the last hour or so. >> they certainly have. welcome, everybody let's give you some other headlines at this hour the u.s. trade gap narrowing sharply in march, hitting its lowest level since september the deficit shrank 15% from a month earlier to around $49 billion. that is the biggest one month decline in two years the chinese smartphone maker is planning a $10 billion ipo.

the listing is planned for hong kong and will be the world's biggest initial public offierin since ali baba. amazon says more than a million small businesses in the u.s. sell their stuff on its website. it is the first time amazon has given a number on that it comes amid criticism from politicians over its business practices and economic impact. michelle >> lots of factors contributing to today's volatile session. you got any explanation for this big comeback, bob? is this going to be enough for a reversal >> i want to show you the s&p 500. technicals matter when enough people pay attention to them midmorning, we dropped below 2,614. a lot of arguments about that. but as soon as we did, the market weakened overall. we have come back. as michelle has rightly pointed

out. one thing is going on, they're picking bottoms, at least for the moment in two of the most beaten up sectors that are out there. semi conductors, this is a group that's been badly beaten up in the last month or so very aggressive buying what i like about ets is you can see volume now you can see it here very clearly. the other beaten up group, consumer staples we had reports, kelloggs did pretty well this morning, but group has been destroyed this year most are 25% off of their 52 week high. some are 40% off not positive yet, but this is certainly a very positive sign that two of the most beaten up groups there's a evaluativaluation plag here people are saying let's pick some bottoms here. the issues for stocks? all of a sudden we're talking about peak earnings, slower growth and higher rates. we didn't talk about that two months ago and then the geo political stew.

what's debated here's the battleground. this is why it's getting confusing. how much is global growth slowing and nobody can agree on that how hot is inflation if you can answer these accurately and what's going to happen in the next six months, you can know where the stock market is going. i tend to think about what's going on here as temporary and goldman sachs hit on all the high notes their position is, they're keeping their strong outlook for global growth. their concerns over the fed are tightening they say are overdone we talked about this 200 day moving average, likely to ease. i agree with goldman sachs there. a lot of good color there. for more on today's turn around from a technical perspective, dominic chu is looking at key numbers we should be watching. >> so you guys mentioned that 200 day moving average for the overall market just to put it in perspective,

that's where we're sitting right now. you can see it right here. the reason why people are looking at this is because we have hit it in the past over the last few years, two to three when we get close to it we've found we've been able to bounce. the trend has been to the downside that's something to watch, at least for the dow. moving on to other things that we're watching, you've got what's happening with the s&p 500. same kind of story the down trend still intact. we're finding some support here as well. take a look at some of the individual groups here let's take a look at the financials we did see again this area here, balances have happened in the past as that kind of happens, it will be big and defense contractors will be key as well. a big beneficiary of the trade since donald trump has been elected. you take a look at the moves from the defense contractors, and that's a big one as well the support level we're seeing here has been hit in the past.

we have seen things go generally higher i will point this out, in the rally we've seen since the intraday lows, boeing has added 80 points to that move watch those defense contractors, those names could be some of the beneficiaries at least for now. thank you very much. the dow is staging a comeback at lunchtime. a 300 point turn around. 21 of the 30 sdrees aindustriese recovering welcome to both of you mike, you mentioned as we came on air that it appears to you that the dow bounced off its 200 day moving average >> i think the short term price action is -- we heard it talked about earlier in the day, coiling, we're getting closer and closer i mean, our take on this is

simple we've had two catalysts after the january melt up. remember, we had a big huge run up in january. the first was sort of the volatility futures debacle that sort of set that off and that brought in some volatility people started getting nervous and then we had donald trump talking about a trade war. both of those seem to be resolving reasonably well. yet the stock market is about 10% lower. looking at all that we know there's plenty of things to worry about. but we're reasonably bullish and optimistic for the rest of the year. >> kirk, what do you see on the horizon in light of the trade concerns and the things that mike mentioned >> well, i call this the year of contradictions so i expect that we would go back and forth i think what the market is worried about is what i call the second derivative effect meaning earnings have been strong if you look to next year the growth is slowing down

i think people are concerned about that you've always got the geo political headwinds. after the year we had last year, i think it's to be expected that we're going tobounce back and forth all year long. >> do you think, mike, that investors are all concerned about president trump's increasing legal troubles and the potential of him to carry out his term without facing legal jeopardy >> i think that's starting to settle in a little bit as well i think -- regardless of your political outlook and how you view the man as president, the fact is when you have that much trouble or potential trouble at the head of the country, you're potentially setting up some difficulty in the markets. i would expect if that continues to unwind, you would see investors price in another decline. >> should they sell on that, or is that a buying opportunity >> it's hard to say. it depends on how it plays out the last time we had this trouble was back in nixon.

clinton had a little bit of it. >> clinton hada lot of it. >> he got impeached. >> the market, we did just fine. >> i mean, the -- it seems -- this is hard to know because we're not -- i'm not an attorney understanding what the sort of constitutional ramifications are and then what impact that might have on the economy and the markets of course. trouble at the leadership level is never a good idea for financial assets it's just not. >> kirk, what's the most important thing right now that's driving the markets? is it the issues in washington, geo politics do you look through those? what do you do >> it's trade wars and currency. what is interesting to me is what's happening to the dollar i thought that the dollar was going to go down on the other hand with rising rates you'd expect the dollar would be stronger. we have to watch that. hopefully more calmer heads will prevail. i look at trade wars as a tax. hopefully that will settle down. i think there are great

opportunities in the market. i got back from asia, hong kong, thailand if you look at the two etfs, they're both up. their economies growing 6% and 8% and they're feeding china in terms of food. there's real opportunities in the market you have to look for those again -- >> should we conclude that you say invest outside the united states before you invest inside the united states based on those recommendations? >> i think you should look outside the u.s. i think there's going to be greater growth but i think, you know, if the dollar continues to appreciate, that's a head wind for the emerging markets i look at that as temporary. >> thanks very much. shares of tesla down sharply today. 6% it's not about the company's result as much as elon musk's performance on the call.

phil, a lot of negative reaction here >> you know how usually when you take a look at analysts' notes they tend to be dry, not terribly colorful. here's some of the commentary we heard. you mentioned isi, the headline, welcome to the circus. instanet, positive but not without a sideshow keybank loving teslaerse bo, boa battlefield. tesla's shares are down more than 6% today. most analysts say the call was overshadowed -- it did overshadow the q1 results which were not half bad relative to expectations the main question, model three production tesla did say yesterday it is on target to build 5,000 per week with -- in about two months. but when joe from rbc capital

said what about the configuration of those cars. that didn't sit well with elon musk >> sorry, these questions are so dry. they're killing me >> and what's killing tesla's shares today are questions about its cash burn and whether or not it needs to do another capital raise. moody is out saying it believes tesla will need to raise approximately $2 billion if you are a tesla investor and you don't like this volatility, elon musk says get out >> people are concerned, they should not buy our stock i am not here to convince you to buy our stock. do not buy it if volatility is scary. there you go >> in a word, elon musk was feisty yesterday a number of people had said he was downright rude to a number of the analysts by not answering their questions. i don't think that is going to change how he views his role at the company, especially when it

comes to answering questions on analysts' calls. yesterday he made it very clear there are some questions where he was like, i'm done. i'm not going to answer your questions. >> it sounded like a gregg popovich press conference. do you know who i'm talking about, the coach of san antonio? there's contempt toward the press, in this case the analyst. their issue is getting up to scale, isn't it? >> correct right. look past his behavior yesterday or how he treated the analysts, the core question remains, model three production, do they get up to 5,000 per week with those 25% gross margins? if they do, they go cash flow positive and they don't need to raise capital. >> distracting people from those questions, right >> well, that's -- >> move along, nothing to see here >> this has long been the criticism of elon musk whenever he doesn't want to discuss something that's uncomfortable or not very pretty, he will come up with

some other way of distracting analysts or distracting the public i've heard this for years now. and, look, i'm hearing it today from people who are saying why didn't he want to talk about it? does he have something to hide is he afraid to admit that they're not going to make it those criticisms are out there. >> thank you very much. let's go to aman jeffers at the white house. >> nbc news is reporting that michael cohen, the personal lawyer for the president of the united states has had his phone lines tapped, wiretapped by federal authorities t. nbc news is reporting it's not clear exactly when that wiretap was put in place but it was, according to their sources in place in the weeks leading up to that law enforcement raid on michael cohen's hotel room and his office also reporting is nbc that at least one phone call between a phone line associated with cohen and had white house was intercepted by that wiretap. that may be one of the reasons

why legal advisors were suggesting to the president that he should not call mr. cohen in the wake of that raid given that the expectation was after the raid that his phone lines would have been tapped and that could be a dangerous call for the president of the united states to then be recorded by federal law enforcement authorities who were listening in on those calls. now nbc news reporting that that wiretap existed before that raid although it's unclear exactly when the wiretapping of the president's personal attorney began. >> so many questions, so few answers here it is a tough one to unpack. >> we'll have an opportunity to get some answers from sarah huckabee sanders here at the white house. she's got a lot of questions she'll be facing today, including about rudy guiliani's statements earlier in the day that the president was in fact aware of the payments to stormy daniels on behalf of the president from michael cohen, the president's lawyer the same person who nbc news is reporting has been wiretapped. also the idea that the president

paid back michael cohen for those payments. >> and the president has fundamentally said on that what? >> he has said he was unaware of those payments he said that on air force one several weeks ago. now what rudy guiliani has been saying today -- he's been brought on as the president's personal lawyer. he has been saying that the president was unaware of the payments at the time he made the statement. saying the president didn't lie on air force one, but that he became aware of it between then and now. and the president is now aware of it and did, in fact, reimburse michael cohen for the $130,000 during the course of 2017 and possibly 2018 one of the big questions around that is how is it possible that the president reimbursed him for $130,000 in 2017 if he wasn't aware of those payments until 2018. >> i'm sure that sarah huckabee sanders will get lots of questions on that. >> and will defer them to his

lawyers. >> thank you. >> i was looking to see if the news about the wiretaps would affect the markets but not at all. so as we said, stocks are trying to stage a comeback. dow was down more than 390 points at its low. two times now we've seen it try to go positive boeing cisco and 3m are leading the charge nike, goadmldman sachs and home depot are the biggest drags. coming up, a sit down with rosalind brewer. nexteronow lch he perun

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from some of your favorite artists. the 2018 billboard music awards, sunday, may 20th. only on nbc. starbucks settling yesterday with the two men that were arrested in philadelphia the terms of that deal are confidential the company making no secret of its desire to improve its policies later this month, remember it will close 8,000 stores to train employees about racial issues. let's go to kate rogers in atlanta. >> that's right, we're joined by ross brewer. thank you for joining us. >> thank you for having me. >> we're here at the hiring fair it's a fantastic event we will certainly get to it. given the settlement news yesterday with the two men who were arrested at philadelphia at

a starbucks store, i'd love to know what was your reaction to seeing that arrest footage >> you know, the footage was alarming no one ever wants to see that. and me in particular, i have a 23-year-old son. so it was deeply personal. but we're really pleased as a company where we are now where we plan to take the company from here. it's only onward from here. >> here today, you're reaching out to opportunity youth those are young people, 16 to 24, who are not working and not currently in school. why is that an important commitment that starbucks has made >> this is a really important commitment it begins our conversation about who do we want to employ in our stores we want to give everyone that first chance they need these opportunities. this is a part of our nation that usually gets forgotten aabo about. when we hire these young individuals, they stay with us longer, they promote sooner than the rest of our hires.

we're proud to have them as part of our family. >> do you have any sense yet if what happened in philadelphia will impact the company's ability to hire for better or for worse? some people said starbucks had done a really nice job in handling the fallout and taking action to right this wrong do you think it will be a positive or a negative when it comes to hiring? >> if this is any example, this is one of our largest opportunity fairs. we have more than 5,000 applicants here today. we have partners from other companies joining us if this is any indication, we don't think there's any problems. >> we talk a lot about skilled labor and the skills gap on cnbc we see companies of all sizes, they struggle to find the right workers to fill the positions. is that something that starbucks sees when you're trying to find the right people to hire and bring on board >> it's funny, our brand is so amazing. you know, your first job with us, you come in and train as a barrista and have the opportunity to move up in the company, we have so many examples of people who started at the very beginning in their careers with us.

they have done extremely well. >> i want to talk a little bit about corporate diversity. you're on one of the most diverse boards in corporate america today. your fellow board member did talk about needing more corporate kaepernicks. who is going to be the corporate kaepernick and say we need more diversity at top leadership positions. why is that a critical mission for companies across the board why do we need more diversity and leadership is it critical to the success of the company. >> it's critical there's been studies that have been done that shows more diverse boards produce better financial results. i can tell you, our board is a board that embraces our conversations. they're very, very forthcoming we have open and honest direct communications about what's happening in the company and it starts because we are diverse. diverse in thought diverse in race. diverse in gender. and that makes the conversation so much richer it makes us a better company. >> do you think beyond

starbucks' progress, that enough process is being made to have more voices at the table >> we love to challenge other people we love to lead by example that's how this whole company was started. and so if you can see the success we've had growing this company in a short number of years in my opinion to over $20 billion in sales, i mean, it's the kind of thing that everyone dreams to have happen let us be the example of what diversity looks like. >> last question for you, what was the biggest take away for starbucks in this fallout and the aftermath of what happened in philadelphia? biggest lesson for the company moving forward >> this wasn't one of our best moments. but one thing i can tell you personally is that i'm so proud that this company already had such great foundation. and we have the ability to start a national conversation. and that's what we plan to do in this respect not let to work stop here at starbucks, we want to partner with other companies we want to improve things in the city of philadelphia we're very optimistic about

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containing this information. read it carefully. adidas reporting double digit growth

underarmour noted no growth in north america. how? well adidas has managed to nail the fashion forward trend of at leisure. of course, there's also kanye west creating a halo effect over the brand. i asked the adidas ceo about kanye's recent claims on twitter, that he's been paid more than michael jordan listen >> i don't know how much money michael jordan makes, and i think it would be inappropriate for me to disclose the details of our contract with kanye west. no doubt the brand has an impact on our overall position. in the bigger context of us being a $25 billion company, you know, a small part of our company. you need to look upon it in that context. brand, yes,ito it's a manageable size from a business standpoint. regarding income, you know,

that's something between kanye west and michael jordan. >> a small part of the $25 billion brand. i'm sure that's not -- >> it's a manageable brand, yes. >> when it comes to adidas, investors have been worried about trade because sneakers and clothing are made in asia, sold in the u.s., sold all over the world. they're worried about any threatened tariffs here's what the ceo said on that risk. >> so clearly we as a global company are pro free tarade point two, the biggest part of our manufacturing today is not in china it's in vietnam and indonesia. so we still have a large manufacturing footprint in china, but the biggest part is in vietnam a big part of what we manufacture in china is for china. should any kind of duties come up, we believe it's manageable of course, we'll need a bit of time, but it's not something i

lose sleep over. >> that's interesting, they manufacture in china for china. >> that's why they're going to vietnam and other places but it also highlights something as this trade war -- if it does escalate -- i mean we'll find out what the delegation on the ground is seeing if you have your manufacturing base in china for your china market, in other words if your manufacturing is close to the consumer base, that certainly gives you an edge. right? >> if you are worried about tariffs. >> and other costs that might be rising. >> something that nike would say, too >> all right we're going to go to a news update. president trump marking the national day of prayer with religious leaders in the white house rose garden. he acnauknowledged he repaid his attorney for hush money to stormy daniels

despite previously saying he s didn't know about it. >> i will always protect religious liberty. we've been doing it. last year on this day, i took executive action to prevent the johnson amendment, a disaster, from interfering with our first amendment rights i was so proud of that >> a section of a parking deck collapsed in detroit, causing at least eight calls to fars to fal the cause of the collapse iss under investigation. 40% of people between the ages of 65 and 80 are sexually active 73% say they were satisfied with their sex lives. and despite the importance, very few said they have discussed the topic with their doctor. that's the news update this

hour, back to you. >> i was ordered not to chat with you. >> we'd get in trouble probably. let's get a check on the markets. got a volatile day on wall street the dow jones was down up to 390 points at its lows down 23 points right now boeing ishelping the rebound nike is among the biggest drags. materials and technology are the best performers at this hour trump's trade team is on the ground in china. but with a group that has very different opinions on the hot topic amongst themselves there is larry cudloe, are they going to accomplish anything we'll discuss next

president trump's economic team is in china trying to negotiate deals and avoid a trade war. eunice yoon is with us >> reporter: senator mnuchin and his team wrapped up their first

meeting with the chinese there is so much at stake, but at the same time, there really is a feeling here that the two days of talks will not end or at least it's very unlikely that they're going to end in a grand resolution secretary mnuchin has indicated they're hoping to make progress on a wide range of issues. some of those issues like china's industrial policy are core to beijing's national economic agenda. there's a lot of skepticism that the u.s. administration is going to be able to change china's trade practices and get them to agree to that in just such a short period china has been sending very conflicting messages through the state media as well through official statements. on the one hand they want to appear as though they're

concilitaconci conciliatory the art of a deal is when all parties are happy with it. on the other hand, they want to show that china has leverage and won't back down. chinese state tv was highlighting that importers completely stop buying american soybeans in the past two weeks so a lot of conflicting messages there. but, obviously, some very tough negotiations ahead for tomorrow. guys >> china talking tough ahead of this eunice, thank you very much. how successful will the u.s. delegation be in securing concessions on trade with us, the former undersecretary of commerce for international trade. you were undersecretary for president obama. there were no threatened tariffs, what's possible >> i made five administraseparat china to do this the u.s. is fielding a senior

team five principles, three cabinet level folks who have made the trip i quite agree with the comment that was just made, that a big deal is unlikely to happen so i think with best case, we're looking for incremental progress >> which would be what >> well, for a start, to start to build some relationships. so in china in particular, relationships are important to making progress. all of these folks have been in office for a short period of time they don't know their counterparts when you think about the way these meetings tend to work, they are large we're bringing a big delegation. there's going to be a big delegation in china facing off against each other by the time folks are done with their prepared remarks with simultaneous translation, there really isn't going to be an opportunity for real deal making the work in advance of this meeting hasn't been done. >> we want to highlight the dow has gone positive, the nasdaq has gone positive. i'm sure it's you.

we'll get to you in one second one more follow-up question. if president trump were watching, he'd say you went to china five times, you didn't get anything done, did you why is it so hard to negotiate with the chinese >> hard problems are hard to solve. the notion that we're going to be able to do this in one meeting and you're going to send this team over and actually make -- have something, a big deal get dones is naive and unrealistic. it will have to be incremental progress if we're focusing on this immediate $100 billion reduction to our bilateral deficit and expecting china to move away from their industrial plan, this so-called made in china 2025, that's not going to happen we should be focusing on ip theft. we should be focusing on creating a level playing field we should be focusing on where they break the rules of trade.

as opposed to these ephemeral notions that have nothing to do with the rules of trade. >> john, you spent a lot of your life in china. you know the chinese how is it different to negotiate with them and how do they respond when they're pushed back up against a wall rhetorically >> after 100 times there, you know you don't know china. which is me. but i tell you, you only know and trust. these are people who don't know each other i would count how senior they are, not by their title, but how many stamps they have on our pa passport these group has damn little. >> the chinese side? >> our side. >> how do you know that? >> i know three quarters of them personally you have to spend time there to get to know people you have to understand why they're doing what they do how much of what they're doing

is for a local political purpose. how much is for industrial policy how much is driven by old fashioned politics like if we give a tariff to the steel sector, i'll get some money from a steel company. all of that matters. our first reaction is always tribal chest thumping. america good, china bad, here. and theert other there the trade deals are made at the individual level it's whether i do or don't buy a bicycle from china there are millions of decisions. >> as an investor, the fact that -- if there's an incremental progress, will that be good enough for the market? the fact that there's not a bigger blowup or source of contention or heated rhetoric, is that what the market is looking for? >> the no blow up is a great thing. that's what we'll see. these are sensible guy and they'll have a nice talk with each other and they'll come back home. >> opportunities -- >> i think anybody is anticipating -- >> are they taking it down so much that they might surprise

us they have diminished expectations so dramatically. >> maybe there's a short term -- >> there's wordsmithing you can do to make a good impression afterwards on both sides when a leader speaks, even when they're abroad they're speaking to their domestic voters so we're going to hear positive things yeah, that could be -- >> final thought. >> it's a long game. >> well, the one thing i would say is it doesn't seem like there's been a clear set of objectives that have been laid out by the administration, that they're going to achieve other than the deficit reduction targ and the industrial policy target. >> did anyone see the trade deficit today? it shows the deficit with china went down 11.6%. i wonder if that will calm tensions. >> you'll have five strong voices i it's not clear they're singing from the same playbook there could be a lack of

coherence which i think will buttress not making progress. let's get you to the bond market >> treasureri treasures are lon. tomorrow's employment number is a big deal you see the two day chart, we're hanging tough. we'll open it up to early february, that 295 high from february stands at 303 we haven't closed below there. it's going to be significant, especially after tomorrow's number on a friday to see where in context the 295 and 303 could have some momentum issues. the dollar has been a stellar performer. we're moving sideways, but at a good level anything under 92.53 comps only to january 9th important to pay attention to that level as well

finally, here's the trade balance, which is a deficit now. going back to 2000 we had a real whipback from 57 to under $50 billion today the reason exports at a record $208 billion and even imports at $257 million, close to records we need to think about that before we discuss how much this global economy is slowing down tyler, back to you. thank you very much. ri apple gives away $100 billion. they gave it back to shareholders they're not giving it away blue apron pops and drops and pops again we'll hit all these topics with o'leary, mr. wonderful next on power lurch.

if i were elon musk i would have done the exact same this. he doesn't want hedge funds in his stock.

he goes from the charade of answering questions. >> that was jim cramer with his take on the tesla earnings calm. shares of the stock are lower than 6%. kevin o'leary joins us to discuss this, along with corporate buybacks and his 2018 stock draft picks. kevin, thanks for calling in whatdo you think about what ji cramer said to elon musk's bizarre conference call? do you think it's an okay thing? how do you feel about it >> there's a certain thing you have to have when you become public the same analysts are on the phone call, they're part of your family every quarter they ask the same questions and you answer them. that's how it works. everybody expects that it's been that way for decades it's going to be that way decades from now and so when you breach that, you end up making -- volatility ensues because it's chaos. people don't understand why you're doing it.

what's the reason? do you have a personal vendetta against these individual analysts it's ridiculous. of course there will be volatility if you're a shareholder, you should be -- >> okay if you can't handle it, he says get out. next topic, apple nounciannounca stock buyback. are they using the gop tax cuts to reward shareholders >> i don't like stock buybacks they're never guaranteed if you want to return capital to shareholders, increase the d dividend or do a special dividend let me tell you something, i want my capital back so i can redeploy it where i want to deploy it. that can be in fixed income as well when a stock buyback occurs the only thing i can do is to let them continue it in my name. i want cash. in cash i trust. everything else is beep. >> as you've made clear many

times. your stock draft pick blue apron reporting earnings it's in the green. you're in second to last place, kevin. >> oh, we're in such early times. this is a 12 month press i think my picks are going to win again. i will crush all the competitors. i'm disappointed in bethany. i took her under my wing, tried to be her mentor when i saw there competing with me in the stock draft, i knew it was over between us. i'm going to crush her too. >> she picked spotify, so that's been hurting her she's off by 2%. you're off by 4% >> look at the quality of my names. i'm not taking that down i will survive and win i will crush everybody >> thank you, kevin. >> thank you >> classic >> get some confidence, he'll be all right. >> mr. arrogant, is that what jim called him the weathe

spring is finally starting, it feels like summer it's 90 degrees in new york. great time for sports fans which is the hotter ticket hockey or basketball i think even i know the answer we'll ask the co-founder of seat geek and answer to that. we'll have the cofounder of seat-geek. anwee t nns ked 'vgowierli boeing and cisco and 3m. can it hold? "power lunch" will be right back

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crossover, mitchell. oh up high! >> the call from my favorite nba broadcaster, kevin harland that was rookie of the year candidate donovan mitchell with the strong putback to extend the utah jazz's lead over the houston rockets in game two last night. the jazz won, tied the series, game apiece, three is tomorrow night in utah. we've seen a lot of exciting playoff games this year in both the nba and the nhl, but the question is, is it translating into demand for tickets? we got a guy who knows a little bit about that jack groetzinger is the cofounder of seatgeek. i was surprised to see, by the

way, that the nhl actually is the hotter ticket this year. >> yeah. you know, we saw that last year. >> where and why >> the very highest is in boston right now. the bruins and winnipeg with the jets as well and i think, you know, hockey is a sport that translates really well to going and seeing it live so we've actually always historically seen nhl playoff tickets a little bit higher than the nba. >> it's a very compressed game they don't break it up for commercials as much. you can go and get out intwo hours. it's a very different experience in person. the average price of an nhl game is actually higher as well >> yeah, around $250 per ticket for the nhl playoffs the great thing about the playoffs is if you follow along and you wait until the day of the event, you can get in for $50 or $100 for really great seats still to have this really great sports experience. >> and that's what you do, you're like a marketplace for people who have tickets. >> competitor the stub hub

i want to know what's going on with taylor swift. >> it's one of the hot ones. we've seen really high prices from the eagles this summer as well most popular event across the nation >> that's a different age group. >> the eagles? the eagles are a football team you mean the band. >> i mean the band >> i asked you about taylor swift and you're going to talk about the eagles >> it's her prices are down a little bit from what we've seen in the past. >> that's what i thought >> when you tour as much as taylor swift does, it's a little bit of saturation. >> and the eagles tour less? >> imagine you're a huge fan of taylor swift and she's coming for the first time ever and you see her and it's a great experience she's coming next year and you're not as excited. >> she's also not beyonce. >> this is the first time the eagles will tour without glenn fry, who passed away a couple of years ago. >> you know who that is? >> i've heard about him. but his son is stepping in-and vince gill, i think is there as well >> you're on it, tyler

>> let's talk about your business and how you make money. you make a fee off of each ticket sold? is that how it works >> exactly we're a marketplace. so, you know, just like uber exists to connect drivers and riders, we exist to connect ticket sellers and ticket buyers >> and have you gotten past the point where people have screw-ups? in other words, where people think they're getting a ticket and it's not real. >> yes it's actually a very core part of our business model. we have a product that is built to really enable people to reissue tickets so you have a knowablely valid bar code and when you show up, you know you're going to get in >> have all the leagues fully embraced you >> we're official partner with the nfl, which we just announced. >> that's a good one to be a partner with >> you've heard of it before they're an incredible league to be partnering with in the other leagues, each league has an official relationship with a different ticketing company. but we also work with many of the teams, so for example, in the nba, we're really proud to

have the new orleans pelicans as seatgeek clients >> they're a very hot team >> yeah. >> have to leave it there. jack, thank you. appreciate it. continued good luck. jack groetzinger of seatgeek >> i'm looking at some opera tickets here they have those too. coming up, a closer look at elon musk's bizarre conference call stock taking a hit today, more than 6%. is that an overreaction? is musk just another example of a new management style where you attack your creditics instead of trying to win them over. much more on the markets as well as the second hour of power gets under way how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills.

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welcome back to hour number two of "power lunch. let's tell you what's on the menu battleground market as the market stages a big comeback who's got it right and who will come out on top? and elon musk's let's call it odd behavior on tesla's earnings call raising questions in some quarters about his ability to run the company should investors ignore it and bet on the vision and the man? or should you be a little bit concerned? and we shift nearly everything nowadays so why not parts of a house latest trend in real estate that is helping to fill the

construction labor shortage. "power lunch" hour number two starts right now ♪ ♪ our house in the middle of ou street ♪ >> welcome, everyone, to "power lunch. i'm czsara eisen stocks staging a big comeback with the dow turning positive. as you can see, we flipped back into negative territory but only down 24 points at this hour. cisco and boeing are your dow leaders, nike and travelers are the laggers. in terms of groups, financials and health care worst performing sectors in the s&p, materials and staples are leading. some other movers to watch today, kraft heinz, spotify down as its first report disappoints big time and hawaiian holdings moving lower as southwest says it will start to offer interisland hawaiian flights big competitor >> here's what else is happening

at this hour factory orders jumping 1.6% in march, feeding analyst estimates. it's the seventh increase in the last eight months. according to reports, goldman-sachs will start trading with its own clients and at the start, actual bitcoin trading itself won't be done amazon is launching its own pet product brand called wag it will be available to prime subscribers. the background will begin with dry dog food and plans to expand the selection. tyler. >> got to have cat food there. got to feed the cats let's turn back to the markets and bob and mike at the new york stock exchange. mike, you say this is all part of the anxious rolling correction process that we are in the midst of. take it away >> yeah, i mean, even at the lows this morning, it really was part of the same process we've kind of tested this floor of the range we've been in for a while, several times at or around 2,600, maybe a little bit below.

yes, we got below the 200-day average but to me, that wasn't really a trend change. what i think maybe has changed a little bit is that some of the beaten-up areas have gotten soen -- beaten up that you might get a lift as people return to them. i don't think there was a lot of pile-on effect even at the lows this morning so it didn't seem to me that sellers were really getting urgent, no real panic, so here we are in the same kind of environment >> i agree with you, mike. i would note and what made me very encouraged was i saw signs of picking up the beaten-up sectors mike was referring to. semiconductor stocks had a rough time of it they led the turn around and put up smh look at that turn around consumer staples, how many days have we come on talking about every single consumer staple at 52 week closed, some of them down 25% they also led the charge to the upside then we had other beaten-up groups, industrial stocks have had a horrible two weeks they also went into the green. even gold, i know we're not

paying that much attention but gold had a terrible performance. they also moved into the green here's the problem i've got. we have not resolved the two fundamental issues, which is how much is global growth slowing if at all and how much is inflation really picking up because the bears have seized on this idea, slowing global growth and inflation picking up and the head wind, i don't know how to answer that. >> that along with the fact that there's a little bit of consternation that the market, for weeks we've been talking about, has not really responded positively to very good earnings so the longer that goes on, i think you have people questioning the levels we're at for better or worse. >> there's also, guys, the question of leadership right now. it was technology for so long, and then energy all of a sudden took a leadership position in the market financials continue to get hit heart. where are you looking for that, mike >> i mean, i would say technology until proven otherwise is among the leadership right now i think it's just less clear cut in terms of one or two groups that are really carrying things. energy, you mentioned, it's been

actually very impressive it's just not a big enough part of the overall capitalization of the market to necessarily be the only engine. so i think that's one of the other reasons we're stuck here >> look for the most beaten-up sectors. i tend to look at things like relative strength indicators, the momentum for the last few weeks, a horrible numbers. i mean, we haven't seen these kinds of awful numbers for a long time in the industrial space and the consumer staples space and that's where i would look for the -- by the way, jim cramer mentioned this this morning, i thought it was a great call looking for the bottom, better than expected numbers for kraft heinz and kellogg's as well. >> sort of less worse was the story with kellogg and kraft heinz. guys, thank you. as we said, stocks staging a big comeback after being down nearly 400 points. the dow is now almost at the flatline so how do you invest in this market? what are the signals telling us? let's bring in the senior equity specialist and the managing director and portfolio manager i guess, grant, the question is,

is this some sort of turning point in the bull market which has been going on for years now the fact that stocks can't react to what is 25% earnings growth and a number of other economic positive fundamentals. >> yeah, i think if -- when you started the year, if you were told that the multiple on the market contracted by two multiples and earnings were up by 25% that this would be a pretty good buy-in opportunity so, in our view, we don't see the landscape for equities as very different from the way we started the year the only thing that you're getting now is it's at a cheaper price. >> you're a buyer. >> absolutely. >> on the dip. >> absolutely. we're telling yoour clients, looking at their portfolios, that now is the time where you want to take a look at asset classes that perhaps they've been underinvested in. one of the conversations we've had with clients is merging market equities, which have been unloved. it's not had the same rally as the u.s. equity market in the last five years. the exception of the last 12 months and now we think that the tide has turned to have

basically a multiyear run for emerging market as an asset -- >> david, why aren't more people buying, doing what grant thinks they should do >> they're still whipped by not one but two 10% corrections as of this morning, the average stock in the s&p 500, 16% off its 52-week high what i think is different now than in january, it's more positive, is today, for the first time in more than a year, the percent of bears were higher than the percent that were bullish. in january, that was a two to one ratio to the bullish side so from a contrarian perspective, average stock down, bulls marginally higher than bears in sentiment, at the same time that earnings are growing 15% to 20% and margins are healthy, you can be a selective buyer in this market knowing i'm never going to catch the bottom but if i can find good companies, particularly on a small cap side

that are spinning off from larger cap companies, always a proven formula, names like avaia out of bankruptcy, windham that's going to get me to the finish line. >> you make a case that a lot of the frothiness has been wiped out. the multiple where it sits right now, is that the right one or do you hope that you get more out of this? can stocks still go higher from here >> yes, i do believe so. we know simply it's not going to be the first nine years of this bull market, but nevertheless, if you take a one to two-year view and you think stacks are going to give you about 5%, find a good active manager, get 8% as a return, where else am i going to get that? it's not in the bond market, still an environment where cash flow is abundant companies are still good deployers of their capital but i think stocks are the place to be, and we're moving into an

inflationary environment and that's why i want to trend in the type of stocks that win in that type of environment >> grant, we've been following the cash, the saving from the tax reform to see what companies are doing with it. many are announcing big buybacks like apple, many are announcing more capital expenditures and investment which one do you think investors would rather see and reward the stock for? >> from our perspective, it's a little bit of both we don't want our companies to invest just because they have additional cash on projects that aren't going to have a good return on their investment you have started to see capx turn it's running at roughly 20% year over year. we've had basically a multiyear period coming from the energy selloff in 2014 where capx has declined and we feel this is one of the drivers of the market going forward as companies reinvest selectively in projects and that could potentially provide a further boost to companies top line >> growth. grant, thank you very much grant bughman and david sowerby.

we had a big turn around today. let's talk about the technicals. the s&p and the dow breaking through their 200-day moving average today. on the news line is mark newton. good to have you on, mark. tell us, what do you think about today? a lot of people, when you see a market that was off so sharply, nearly 400 points for the dow and has now moved back into positive territory, that can qualify as what they call an intraday reversal. does this qualify and would it be good news >> thanks for having me. you know, i think in the near term, it's really not all that important that we've just rallied off the interday lows. i think in general, people are still trying to cometo grips with this new age of volatility that we've been seeing, so you know, trends and momentum have really been negative for the last couple months we've seen a big shift to defensive positioning with the move into utilities and reads even though interest rates have

gone higher and really it's been a lot of the weakness in financials and semiconductor stocks that really has not been resolved yet, and so, you know, it is impressive to see a snapback interday and obviously we've got a big number coming up tomorrow and ahead of the jobs report, but you know, we really did not see the evidence of any sort of capitulation and/or fear at the lows today that would suggest that, okay, the selling is over, and lows are in and it's time to buy so, a lot of my indicators i look at are still very much premature. i think we likely are going to get selling into next week technically, i think you can make the case that once we test those february and april lows, that we could put in a bottom, only because credit spreads have been pretty subdued. we haven't really seen that widening >> so, since you brought up credit, just wanted to ask you about how tethered this market is to what's going on with treasury last few weeks, there's a lot of hand-wringing over that 3% level that the ten year yield hit but this morning, when the dow is

down 400 points, yields were lower. there was buying in treasury so is this an interest rate story or not >> i don't think so, only because, you know, rates haven't really broken out materially if you look at the longer term trends from the mid '90s the area near 305 is solid resistance and now everybody is shorting treasury so my thinking is that 3 to 3.05 is a solid ceiling for this year and i think rates will come down but equity's and bond yields have been moving pretty much in tandem they both bottomed in early april. they both peaked at or around the same point, right around the 20th of april. and so we've had a little bit of rally in the bond market and equities have sold off you know, for one who worries about growth, that's tough to gauge. >> i want to get you back to a point you touched on and see if you can put a sharper point on it what do you see from a technical perspective over the next three

or four and then as we enter into the summer period what do you expect >> so near term, i think we're going to see a little bit more selling in the next week i don't think stay all that important. however, i do think that we are getting close to a level where we're going to put in a low, only because technology overall is in pretty good shape. we've sewn then that semi weakn but the rest of technology has not fallen apart tech is still a leadership group. credit spreads are still relatively tame. if anything, the move down in the j and k has been due to yields in europe, if you look overseas, we've seen a lot of strength out of europe and out of, actually, asia as well in the last few days, so typically, the world will move in tandem and you know, obviously, right now, i still think that the u.s. likely is going to attempt to rebound out of this. my main concern going into next year is that momentum has come down so substantially that even

on a rally back into the fall, you know, it's likely that we're starting -- >> mark, we got to go. we really appreciate it. thank you so much for calling in >> take care, everybody. >> we are waiting for the white house press briefing to begin this hour. the white house is in spin control, damage control, you pick your verb there following comments by president trump's new lawyer, rudy giuliani, and news of phone taps on president trump's personal lawyer, michael cohen. we will carry it, the q&a part at least, live and here's what's coming up on "power lunch. jim cramer says elon musk won't do another earnings call is he right? and would that be the right thing for the company? plus, would you live in a building that's been built in a factory and shipped to its destination? one company is betting you will. we'll show you how they're doing it and beyond buybacks, the other thing companies are doing as a result of the tax law we've got all that and more when "power lunch" returns in two minutes.

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♪ i remember when, i remember, remember when i lost my mind ♪ ♪ there was so pleasant about that place ♪ >> is that a reference to kooeln musk, that song? he's the talk of wall street today, following what might have been one of the most bizarre earnings calls of all time the ceo cut off analyst's questions, encouraged day traders to sell his company's stock too. >> we're going to go to youtube. sorry. these questions are so dry we have no interest in satisfying the desires of day traders. i couldn't care less please sell our stock and don't buy it i'm not here to convince you to buy our stock. >> when he made the reference to youtube, that was the -- an analyst, a retail analyst with the youtube channel who got to ask questions, a lot of them on the call the analysts who didn't get to ask that many questions because elon called him bone headed,

they called musk's comments bizarre theatrics, unorthodox behavior and declared the call didn't go very well. our next guest says musk's behavior avoided execution and strategic concerns thanks, good to have you here. >> thanks for having me. >> should elon musk still be ceo of this company? >> she's ghe's got a vision buty need help detailing the operational issues i think we got a lot more information last night on some key growth initiatives their need to build a factory, the potential to announce a new factory in china as well as pretty significant delays in terms of timing for the semitruck. but then, you know, we missed out on some important details around what was the driving the gross margins last night we think there's some significant mix towards overseas products and there may be some core issues around the sell through of the model x and model s in the u.s. market >> the gross margin question got

him particularly upset, i think. i think that was one of the, quote, bone headed ones. journalists are cynical. by definition, right so you see that kind of performance, we think, is he trying to hide something is something going on, or is this just because elon musk can't be bothered with the minutia of running the company >> if he can't be bothered with running the minutia of the company, he should change roles and bring somebody else in as the operational manager that's going to interface with the street the fact that he couldn't even say how many semitrucks they had on order was a concern for a lot of folks if he's the person that's going to be focused on finishing the incredibly important aspects of this manufacturing, he should know what's going on there and the demonstration of that lack of knowledge is a real concern for a lot of folks >> compare what you heard yesterday from elon musk to what one might have heard years ago from steve jobs. >> you know, i haven't covered apple so i can't really spoke to that, but certainly, you know,

when we look at this company, i think the devil is in the details here and cash is really important, especially for bond investors at this point. and the management of this business to get to a break even in the near term basis is that they can continue to grow. but what we heard last night from them was the slowing of the growth, slowing of the growth initiatives and a real focus on reining in the organization and we've had a long concern around focus for this organization and potential for them to have taken on too much at one time. >> very quickly, they lowered capx we're talking a lot about capx and people see that as a good thing for their cash position but is that really a good thing for this kacompany right now. >> i think it's a necessary aspect for this company. what we heard them say was they needed to get this first stage of model 3 production locked in and understood in a more detailed way and then they'll make decisions what we heard was a fundamental pushout to a move on 10,000 vehicles a week and they don't know how they want to configure

the factory in a final format until later this year. >> it's a hypergrowth company with a huge multiple i'm sure we'll be talking about this again last night wasn't the first time that mr. musk has made comments that have turned heads, particularly about the stock let's listen to a sampling oh, i'm sorry. i thought we were going to listen to something there. stormy weather in shortville, tesla is absurdly overvalued if based on the past, but that's irrelevant this market cap is higher than we have any right to deserve we're a money-losing company and who could forget the tweet about where he joked about bankruptcy so, is all this behavior an indication that a great visionary doesn't mean that you can be a great ceo insight now from crisis management professor garcia. good to see you. thank you. what is this performance tell you about whether mr. musk is

the right guy to turn around an execution. >> challenged company or whether he may need a very strong c.o.o who's all about operations >> what we saw yesterday is a symptom of a bigger problem, and that is a tendency of brilliant people to assume that brilliance is enough. where temperament is a necessary ingredient to being an effective leader we see that with many companies that are founded by brilliant people who have an inspiring vision and who create disruptive companies, but there comes a point in the life of the company where that isn't enough. we are seeing that with mr. musk >> are we at that point with tesla? >> we are certainly seeing repetitions of the same symptoms and the symptoms suggest a temperament that doesn't take seriously the burdens that a

leader has to undertake to run a complicated company after a certain point. we saw that, for example, with mr. jobs in his first incarnation at apple we saw that just last month with mark zuckerberg when there was a need for leadership in the aftermath of the cambridge analytica scandal, but instead we got a technocrat. we need a good combination of inspiration and temperament and what we're seeing now? overweighting of the inspiration and the brilliance and an underweighting of the temperament. >> investors can't have it both ways they love tesla and there have been a lot of bulls in this battleground stock because of elon musk. that's the bull case, right, for tesla and his vision and what he's managed to do and they hate tesla because of elon musk and because he can't seem to focus, speak coherently about the financial picture, doesn't want to get too in the weeds when it comes to production and deposits and capital needs. so, which is it?

>> well, it has to be a blend. we're actually seeing the very same phenomenon in the political environment as well. not to talk about politics, but we see the same symptoms we need the right blend of temperament and vision, and one of the challenges with the smartest people in the room is they tend not to respect the people whom they consider to be less smart than they as a result you get derisive language towards a stakeholder group that is critically important for the success of the company, be it investors or employees or regulators or others >> yeah, i've been thinking about turning that bone-headed questions not allowed into the ringer for my phone, like every time my phone rings. >> bone-headed questions not allowed. >> and we saw a similar response from the question last -- from the president last week when he said, that's a stupid question the derision shown to people who have legitimate concerns is what's going to lead to loss of trust. >> professor, good to have you professor of nyu helio fred

garcia, good to have you on. still ahead, disrupting the construction business, how one company is taking prefabbed housing to a whole new level and helping to fix the shortage of labor at the same time we'll head to a factory in phoenix to see how they're doing it next. ♪ i'm going to make this place your home ♪ and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

the white house press briefing set to begin shortly, we'll see how the administration responds to those comments by president trump's lawyer, rudy giuliani, plus news of the phone taps on michael cohen. president trump's personal lawyer we'll carry the q&a live as soon as it happens. and welcome back to "power lunch," everybody. there's a new start-up disrupting the construction industry by building whole buildings in a factory diyeah that diana is live in phoenix with more hi, di. >> reporter: hi, ty. yes, this is one answer to the critical labor shortage in construction not only does it cut costs, reduces labor, but increases productivity we're at a barely three-year-old start-up that's taking construction out of the job site and putting it into the factory but this is not pre-fabbed housing of old these are unique designs from

developers what they're doing is designing it here and building it in pieces, so you've got your floors over there. you've got your walls in one section. then you've even got your cabinets in another section. then they bring it unto another part of the factory and put it all together like lego pieces. i'm going to show you what i'm technically calling a chunk of the building the dry wall, the insulation, the air ducts, even the doors and the windows all in one piece, and then that's shipped out to the job site. so this company was founded and run by a team of techies who used what they learned in electronics manufacturing. >> today, we're taking the very same principles and really applying that to the components that go into building a building and we're building them inside of a factory instead of out in the field. >> then, once in the field, the pieces are lowered into the building, one by one

site managers actually use rfid technology on ipads, kind of, you know, like the ikea construction book, only better now, this is something very cool that they're still working on. it's in beta they're putting the plumbing and the electrical into these pieces, which they will then drop into the buildings on the job sites. katerra recently got nearly $1 billion in funding from soft bank and they just announced today that they have acquired another construction company in the northeast so they're expanding the footprint, building on a model that's clearly working. back to you guys >> wow, that is really cool. thank you very much. potential big transformation there. all right, now to sue herera with a cnbc news update. >> hello, everyone here's what's happening at this hour the white house is avoiding any specific reaction to trump attorney rudy giuliani's comments regarding president trump's reimbursing his personal lawyer for money paid to the

porn star, stormy daniels. >> there's ongoing litigation. i can't go any further than what i've given in the past and i would refer you to mayor giuliani's comments last night and this morning he's going to have the greatest amount of visibility in this, and the greatest ability to speak about it the syrian government releasing video of what it says is continued fighting south of damascus state television shows what it claims to be buses of insurgents taken out of the area as part of the deal with the government to evacuate and when they say don't feed the animals, don't feed the animals. tourists in australia got too close to some kangaroos and look at that. they have the wound to show for it tourists are told not to feed the kangaroos but some decided anyway to feed them some carrots and they paid the price. this after the animal became aggressive at the sight of the snacks don't feed the animals that's the news update >> who knew kangaroos could be

so violent >> they actually can be very aggressive they look really cute but they can be very aggressive >> sue, thank you. >> you got it. to julie now for a market flash here on some video gaming stock. >> act vision, blizzard shares are halted this after the stock dropped about 5% it appeared that some earnings numbers from activision were leaked on a media outlet it's unclear where those numbers came from, but activision is set to release its earnings after the bell today you see this stock now halted. it was down 5.1% the stock is currently halted for news pending that usually happens when a company requests those halts, so we're standing by and we'll be back with any more details back to you. >> julia, thank you. the oil market is closing for the day, so let's go to jackie at the cnbc commodity desk >> hey, sara well, crude turning positive when equity started to stage their comeback it didn't take a lot to turn oil

higher the bias in the trade has been higher, it's been there for some time traders telling me it seems like crude has wanted to push through $70 for a while but just need a catalyst what's it going to be? it could come if president trump decides to pull the plug on the iran deal. it could come around labor day when consumers start the summer driving season it could come as stocks move higher and it could be some combination of all of those. >> got it. thank you, jackie. so all the buzz over buybacks is overshadowing meinelse that companies are doing as a result of the tax law. we're going to tell you what that is straight ahead duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month.

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we're going live now to the white house press briefing to listen to sarah huckabee sanders. >> when the president has a final decision on what he will do in terms of the jcpoa, we'll let you know >> on the other topic in the news today, can you explain why the president, when he had the chance to answer a question about the $130,000 payment from michael cohen to stormy daniels, why the president was not truthful with the american people and with the people -- >> as mayor giuliani stated and i'll refer you back to his comments, this was information

that the president didn't know at the time but eventually learned. >> take a broader view on this i know you can't talk about the details. can i ask you, when the president so often says things that turn out not to be true, when the president and the white house show what appears to be a blatant disregard for the truth, how are the american people to trust or believe what is said here and what is said by the president? >> we give the very best information that we have at the time i do that every single day and will continue to do that every day i'm in this position >> but the president of the united states -- when the story first happened, came out that ty cobb would be leaving and emmett would be coming in, the president said fake news, not true he just -- when he talked about the prisoners in north korea, he said the previous administration had been, you know, failed to get them out these -- two of them were taken prisoner while donald trump was

president. and obviously, the totally conflicting statements on the stormy daniels payment i mean, these are statements that are just not true >> when it comes to north korea, there are -- i think you can also look at otto warmbier who was detained during the previous administration as was one of the current detainees so that would reflect the president's comments that he made when it comes to the last instance that you mentioned as mayor giuliani stated, this wasn't something that was initially known but later learned and again, we give the best information possible at the time and we're going to continue to do that every single day. >> he started paying back michael cohen in february of last year. the reimbursement was happening long before the president was asked about this >> is that a question? >> how could he not have known he was paying him back >> i'm not going to get into those details and i would refer you back to the statements, pretty lengthy statements made

by giuliani both last night and this morning as well as the president's tweets where they both have spoken about that. >> just to follow up on that, the president did talk about monthly retainers in this tweet ask then rudy giuliani said the president only knew about this ten days to two weeks ago. how can you only be aware of something ten days to two weeks ago but at the same time be in the process of paying monthly retainers that apparently covered this reimbursement to michael cohen? >> again, i can't get into the details of the ongoing litigation i'd refer you back -- >> if i could follow up. you said on march 7th there was no knowledge of any payments from the president and he's denied all these allegations. were you lying to us at the time or were you in the dark? >> the president had denied and continues to deny the underlying claims, and again, i've given the best information i had at the time and i would refer you back to the comments that you yourself just mentioned a few minutes ago about the time line

from mayor giuliani. >> but that statement was in reference to the reimbursement, the payment. >> i gave you the best information that i had >> does that mean you were in the dark you didn't know at the time? >> the allegations, the president has -- >> why can't you answer yes or no whether you were in the dark. i think it's a fairly simple question e >> i think it's a fairly simple answer that i've given you several times now that i gave you the best information that i had and i'm going to continue to do my best every day >> can you give me the update on the three americans held in north korea? rudy giuliani said they were going to be released today is that true >> we can't confirm the validity of any of the reports currently out about their release but we certainly would see this as a sign of goodwill if north korea were to release the three americans ahead of discussions between president trump and kim jong-un. >> in addition to being an attorney -- in addition to being an attorney for the president, does mr. giuliani, mayor

giuliani, have a wider remit to talk about things like foreign policy >> not that i'm aware of >> sarah, i wanted to ask you about these reports citing u.s. intelligence that the chinese have installed new missile platforms on the islands in the south china sea. and they also appear to now be basing fighter jets there. meanwhile, pilots are being warned that chinese military personnel are pointing lasers at u.s. military aircraft in africa, injuring american pilots does any of this cross a red line for the president, and how does the administration intend to respond >> we're well aware of china's militarization of the south china sea. we've raised concerns directly with the chinese about this, and there will be near-term and long-term consequences and we'll certainly keep you up to date. >> sarah, were you caught off guard by mayor giuliani's comments >> i'm not part of the legal team and wouldn't be part of

those discussions. >> so, are you -- the administration -- the president is pleased with the job that mayor giuliani is doing right now? it seems as if he's opened the president up to some sort of criminal liability as it relates to federal election campaign violations >> i haven't discussed that with the president. i wouldn't be part of those conversations. >> so the president is pleased with the job mr. giuliani is doing? >> i haven't had that conversation with the president. that's an outside counsel and not something i would be a part of >> thank you, sarah. when was the last time that the president talked to michael cohen and is michael cohen still his attorney and also, is the white house concerned or is the president concerned that any conversations he would have had with michael cohen would have been picked up by the wiretaps that we learned about today? >> let me see if i can get all those questions since there were quite a few altogether i'm not sure when the last conversation took place. on the second part, i'm not aware of specific places where

he's representing the president, and on a last one, i would refer you to the president's outside counsel about any concerns of wiretapping. >> just to clarify, when did you specifically know that the president repaid mr. cohen for the $130,000 you personally >> the first awareness i had was during the interview last night. major. >> sarah, you said earlier that when you have given answers around this general topic, you gave the best information you had at the time. now it appears that your position is you're not going to comment because it's ongoing litigation have you been advised not to wade into this to protect yourself from any potential legal exposure by giving either false information or information that proves later not to be able to be with stood in court. >> no, but i would always advise against giving false information as a person of human decency i do my best >> but when you say before that you gave the best information

you had at the time -- >> and i continue to do that today. >> but it turns out not to be correct or accurate, are you then trying to limit the liability that you may encounter by not dealing with any of those questions now and pushing it all off because you say it's ongoing litigation >> again, i'm giving the best information i have, some information i am aware of and some i'm not when i can answer, i will. but beyond that, i really don't have anything to add >> let me ask you something that the mayor said last night, not related to the questions you've gotten so far. he said, he, being the president, fired comey because comey would not, among other thing, say that he wasn't a target of the investigation. is that the white house position now, explaining why james comey was fired? >> there are a number of reasons that james comey was fired the president's named several of them but the bottom line is he doesn't have to justify his decision the president has the authority to fire and hire, and i think every single day, we've seen that he made the right decision in firing james comey. again, i think there are a number of reasons that he was

fired. >> is that one of them >> certainly james comey was fired for lying, leaking, and politicizing the fbi and the president has been, i think, repeatedly, day after day, been proven to be exactly right in his decision to fire james comey. >> you say completely -- >> sorry i'm going to keep going. >> sarah, can you -- >> you said it completely tainted the investigation. do you agree with that >> shannon, go ahead >> can you clear up this time line event back to jim's question about when exactly did the president learn that the payments were going to michael cohen to cover the stormy daniels? >> i would refer you back to mayor giuliani's comment for anything further >> and did the president know that mr. giuliani was specifically be talking about these payments on hannity last night? was he aware of the time >> i don't know. that's a question you'd have to ask the mayor. >> sarah, thank you very much. a follow-up to jeff's question rudy giuliani has commented publicly on the north korean hostages are they involved in any way in

efforts to secure their release? >> not that i'm aware of >> why are they commenting on them >> that's a question you'd have to ask them. i don't speak for people in that office >> is the president concerned that his own justice department authorized the wiretaps that may have gathered communications between him and his personal attorney, michael cohen. >> again, i'm not sure of the comments on that report or the claims in that report. that's something that you would have to talk with the department of justice and the president's outside counsel. >> when he learned the reporting that michael cohen's phones were wiretapped >> i haven't talked to him about that and i can't verify the validity of that report. >> just going back to the payments question, how many payments did the president make to michael cohen after the collection >> you'd have to ask the president's outside counsel. >> sarah, you're standing there, can i ask you about rudy giuliani's comments? rudy giuliani said this morning, imagine if that came out on october 15, 2016, in the middle of the last debate with hillary clinton, a reference to the payment. so does white house now

acknowledge that that payment was made with politics in mind >> again, i'm not aware of the back and forth and i would refer you to the president's outside counsel. >> sarah, yesterday, the president threatened to get involved in the justice department if memos were not turned over in a timely manner to the house intelligence committee. what actions is the president considering taking and what does a timely manner mean to the president? how soon does he want the unredacted version of the special counsel? >> probably yesterday. but in terms of what he might do, as the president likes to say, we'll see what happens. >> sarah, would you remind us what the president's position is regarding the potential use of interrogation tactics that meet international definitions of torture. >> i'm not sure what those two things you're trying to connect. i know that acting director has done everything appropriate under the law and she's going to be a great cia director and we look forward to her being confirmed. john >> yes, thank you, sarah

question on russia this morning, the financial "times" reported that alexey, a former close associate of president putin and a strong advocate of warmer relations with the united states, may well be rejoining his government. this raises another question yousaid that the president would have a summit with mr. putin sometime in the near future can you give us any clues when that will be has anything been determined on a possible trump/putin summit? >> nothing has been finalized on that front i think the next big summit, if you will, word, i'll borrow your word, that the president will engage in will likely be between president trump and kim jong-un. beyond that, i don't have any updates. >> there will be no meetings, it's likely that there's no meetings with president putin before the kim summit? >> not that i'm aware of certainly nothing is finalized

at this point, but certainly the president would still be very much open to sitting down with the leader of russia >> thank you, sarah. following up on that question, in regards to the memos and the congressional oversight, things, you think it's extort n extortion. what's the white house's response calling it extortion, and does the president support freedom caucuses articles of impeachment for rosenstein >> the president wants to see the request of the congress to the doj be met no conversation about the articles of impeachment. >> what did he lie about before he was fired and leak about before he was fired? >> there's a number of allegations, one, in which he lied during congressional testimony, and he's been

continually a number of contra decisions the president said he has learned every day since firing comey it was the right thing to do, and, certainly, has been justified in doing so again, going back to the president doesn't have to have a justification. he can hire and fire whoever he wants and made the decision to fire james comey, and it's a decision he stands by and onei d

it, but you were blind sided with what you said >> well, with all do respect, you actually don't know much

about me in terms of what i feel and what i don't >> do you know how this operates >> go ahead. >> at this time, the chinese president xi in china, how does the white house feel meeting with the two leaders trying to improve the relationship >> ducking and weaving questions from journalists about what did the president know when it comes to when he reimbursed michael cohen, when it came to the payment to stormy daniels, former adult actress star. all of this coming because rudy guilani's comments raised questions. >> said she learn of it last night on the appearance of the tv show like the rest of it.

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>> a lot of key questions right now. time for check please now. it's got to be -- this is my favorite, if "favorite" is the right phrase to use, favorite sound bite on elon musk last night referring to boring boneheaded questions >> and so where specifically will you be in terms of -- >> excuse me >> in terms of capital requirements >> next. boring hone head questions are not cool next >> boring bone head questions are not cool >> and cut him off you know what, the question may be boring, but it's actually one of the key drivers of the stock. >> that's why he cut him off >> people want to know if he's going to have to raise capital, and on that note, we didn't mention this all hour, but tesla bonds are getting ahead. >> he has a lot of experience asking boring questions, ladies and gentlemen, but that was not a boring question. >> these are the questions that move the stock capital requirements, production

delays - >> how about boring bonehead answers. how about that sometimes we get those >> if you listen to the whole thing, he got another question about when they will compete with waze in terms of cars and taxis that drive themselves, right, and it was this circuitous thing that went over here before it came back over here where is this guy going? he sounded almost lost at moments. it was interesting >> we talked to a bullish analyst this morning on "squawk" and said the guy's been sleeping in the factory, which he admitted because they are trying to get targets on model 3 production, which they are doing, and there was progress and good news on that front, but everything was overshadowed by the fact he lost patience, would not answer question kquestions, and pissed off a lot of people >> sarah does not lose her cool. she does not necessarily answer

questions -- >> not calling them boneheads. >> but she never loses her temper >> considering what she sat through saturday night is incredibly impressive. >> yes >> very gracious it was mean. >> they were awful to her. >> on that note, thank you for watching "power lunch," and "closing bell" starts right now. >> i'm wilfred frost, this is the "closing bell," equity markets with a turn around in the day today as stocks make a stunning reversal. >> we're at the white house where the stakes just got higher investigators have been wiretapping one of the president's personal attorneys i'm bob pisani on the floor of the new york stock exchange as stocks take investors on a wild ride and volatility is back in gear. i'm phil lebeau in chicago with a look at what musk said on last night's earnings call putting the brakes on tesla's stock. >> all that, plus, a big afternoon of earnings as cvs