get be china resolution on xpi and other sales there. and the buyback helps. >> dow is going for seven in a row. >> let's do it >> i feel like the market has its thing back do you feel that way >> tune in monday, we'll see -- >> definitely. it broke through the resistance on the s&p 500 at 2710 going higher. >> great week weekend. "power lunch" starts now. >> a busy friday at the white house. president trump holding a major summit with auto ceos in an hour he unveils his plan to tackle the soaring costs of prescription drugs he is accusing the industry of getting away with murder. staples are one of the worst performing groups this month and the worse so far in 2018 what's going on with that? he mailed us this envelope on tuesday it has a bold prediction about the stock market

wall street mentalist mr. perelman is in the house "power lunch" starts right now welcome to "power lunch. happy friday i am ali' melissa lee. your money keeps on growing. the dow up for a seventh straight day the s&p 500 on track for its biggest weekly gain in two months apple in danger of breaking a tenth straight day of gains. something it hasn't achieved in more than eight years. check out other movers verizon evaluating on an upgrade. drop box sinking on the back of its earnings report. i'm tyler mathisen headlines to tell you about. the st. louis federal president james bollard saying there is no need for further rate increases. he added it could nip business investments. sem an tech losing a third of its value today on news of an internal audit for possibly issuing materially misleading business information and game stock's ceo resigning

after three months on the job for personal reasons the company's cofounder will serve as the interim ceo >> we begin this hour at the white house where a lot of news is happening right now ayman javers of course covering it all for us from the white house. first up, president trump is meeting with auto ceos. >> that's right. the meeting just broke up. we saw some of them leaving the west wing a few moments ago. we will try to figure out what was said in the closed door portion of that meet but the president brought in television cameras -- was not expected to do that but did it with just a few minutes of notice he had a moment with each of the ceos as he went around the table and a specific moment with the ceo of fiat. here's what he said. >> thank you you are moving to michigan from mexico. >> yep >> that's what we like that's great he is now my favorite man in the room big announcement i tell you the people in michigan very much appreciate it it is a big deal leaving mexico, going to

michigan that was a very well received. i appreciate it. thank you. >> guys we do expect that the closed door portion of that meeting might have been more tense than some of those warm opening remarks. that's because the automakers are wary here of being caught between california which wants to keep its high emissions standards and washington, d.c. under the trump administration which wants to lower the emissions standards or at least hold them steady at 2020 levels going forward for a couple of years. the automakers don't want to be in a position where they have to deal with two standards nationally they want one overall standard they want california and washington to work it out without them being caught in the middle we will see what report we can get on what happened once the cameras left the room. >> we have to ask you about at&t the company today saying hiring michael cohen was a mistake but making sure to point out they think it was not illegal. >> you don't often see a statement from a big american ceo like we saw this week. we have seen two of these now,

saying that the hiring of michael cohen was a mistake. here's what at&t said in an internal memo to worldwide employees. they said there is no other way to say it. at&t hiring michael cohen as a political consultant was a big mistake. everything we did was done according to the lawand legitimate our past soaks with cohen was a serious misjudgment for the foreseeable future the external and legislative affairs group will report to our general counsel, bob quinn, the senior executive vice president will be retiring they are moving out the executive vice president of the legislative office and replacing him and reporting all of that to the legal counsel guys >> thank you very much in an hour from now the president is going to be talking about his plan for drug costs. what do we know by way of forecast >> well, i can tell that you the white house told me earlier today that they expect there will be a market-moving piece this announcement.

they haven't put the announcement out yet they say once the president begins speaking we could get those details. the key is the president is not going to go as far to say that medicare can begin negotiating directly with the drug companies to lower drug costs. that's what advocates of lower drug costs have said could happen for years that's been resisted by industry and others but the president is said to have come up with another mechanism for lowering those costs. that's what we want to know here what could be so important for the pharmaceutical companies. back to the markets. the dow is up 50 points here heading for it's seventh straight up day. bob pisani is down at the new york stock exchange with an update. >> hello a losing steam midday but we are up 102 points in the last week or so in the s&p that's impressive. and what has mattered is the leadership groups. technology, banks, industrials, and to a lesser extent energy stocks you can see that in the dow. for once the dow is reflecting what's really going on exxon and chevron have been

market leaders this week in the energy group in the industrials, caterpillar and united technologies have been strong movers. in the bank group, jp morgan has been a big help. materials have been helped by dow dupont and intel is up about 3.5% apple? well, apple is about the dow this week. dow is up 2.5% apple is up about 2.5% we would have ten straight days if we can get the apple into the 189 territory. it hasn't done that, ten straight days in a long time, back to 2010 the laggards, consumer staples still can't do it. proctor and gamble coca-cola. walmart has the flip cart deal united health and other health care stocks aren't doing much either staples and defensive names still not moving forward as for pharma today. ayman mentioned a point, the president said it would be market fg mo so far there is no impact on any of the big pharma stocks high volume etfs, this week we

have seen volume in bond funds i think traders are having a hard time figuring out the momentum and the direction of bond trades right now. back to you. >> thank you bob pisani at the new york stock exchange. the dow is up more than 2% this week poised to extend its sixth session winning streak another day if it can hold onto the 60 point gain should investors keep riding this run let's bring in david cats and michael cue geno guys, happy friday to you both michael i'll start off with you. we may be getting excited about this winning streak here but fact of the matter is the s&p 500 has been basically range-bound for the past couple of months. how do you make of where we stand in the markets give the very strong earnings season we are coming off of? >> given the last week or so i would say the growth train is back on. and yeah, we have been range-bound but this could be potentially a new breakout i think a lot of the things that the market was concerned about a couple weeks back, the fed interest rates, geopolitical issues, corporate earnings, et

cetera have largely been answered so you know the fed not at risk at the moment. the market has a handle on interest rates they are moving as expected. there is no sprys there. corporate earnings confirmed the belief that the corporate tax cuts are going to be real and that could be sustainable for a while. geopolitical some of the risk is off the table with respect to some of the hot spots around the world. so the market can take a breather and look at the base economic data, which is good and i think that's been a driver behind the broad base rally we are seeing. >> david can we see another breakout at this point analysts will point to this pennant formation and there has to be a resolution higher or lower. the financials haven't recouped their highs from the top of this range. industrials, same case there >> we are less concerned with the lack of leadership we think if the market starts to focus on fundamentals and the very good earnings season that stocks can move higher we are less concerned about the

day to day buy companies with good valuations for the next six months we think by the end of this year stocks can be 10% higher than they are now we would buy into periods of weakness we would not chase periods where you have the market rallying buy into the news flow that's not as good. >> geopolitics, crude oil at a three and a half year high and uncertainty in the middle east, i don't know how the trade issue is going to be resolved between the u.s. and china why can are you comfortable with that >> in the short tim term, i think they were been answered. and nobody can predict the future you manage your money to account for a lot of risks and try to profit when you can on the downside nobody can predict that stuff. what i'm saying is in the shorter term the concerns that drove the market down have at least been quieted down or taken off the table for the moment did

that allowed the economic data which has been strong to go forward. there are issues with trade but there is ongoing negotiations. there is issues, geopolitically, but there always are global growth is out there i think that's been a driver behind energy prices you know, the overhang in energy that you have had the last couple of years the weak anemic growth in the states and the lack of growth worldwide, that's changing global interest rates are going up there is reasons energy prices are going on economically besides just short-term trading. >> are the risks that michael expressed and melissa and sarah, are they priced into the market right now? in other words if things don't go the way we hope they will go with north korea, with nafta, with china, and things don't turn out -- we spoke yesterday to secretary ross and he said there are still major differences on nafta and between us and china if they don't go the hopeful way what could happen? >> remember, the market has already sold off 8% from its top

and we have already had a correction the market has priced in a lot of these risks right now the market is at 15.5 times earnings we think if the market can overlook the risks we are comfortable with most of them rising rates, nafta we think is going to be worked out we are concerned about trade with china we are hopeful it doesn't turn into a trade war if it doesn't all the other risks are manageable and stocks will do better you have got to buy for that the best way is to focus on individual stocks rather than trying to buy the market in egg grate. there are a lot of companies paying at 13 times earnings regardless of yields >> thank you the latest oil rig counts just in from baker hughes. the number of rigs in service up by ten over the last week to a total of 844 this is the sixth consecutive week that oil rig counts increased. that total is up by 132 compared

to a year ago. >> crude oil just below $71. coming up less than an hour from now, president trump will deliver details of his plan to lower drug costs up next, not one but two former secretaries of hhs will be joining us with their takes on how the president's plan will really impact prices, from the ow lchwi bioma administratns "perun" lle right back what do advisors look for in an etf? don't just track an index, help me meet a client's need. is the fund built to sell or built to last? etfs are only part of a portfolio.

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president trump's speech at the outside on curbing prescription drug prices, expected to tackle list prices and out of pocket cost but he is dropping his plan to have medicare fully negotiate directly with drug companies does his plan go far enough? what is the right prescription for bringing down the high cost of health care in america? joij joining us, kathleen sabalias, health and human services secretary under president obama. thank you for joining us. >> nice to be here. >> what would you like to see the president do to help reduce the rising cost of prescription drugs in america >> first of all, i think it is a good idea to put something forward. so i am pleased that this administration is following up on some the president's plans. president obama asked for medicare negotiating authority every year that i served as secretary, and then my predecessor served as secretary.

i think that's a hugely important issue, that medicare -- the largest drug purchaser in the country -- be able to negotiate. that's something that i have long supported my understanding is that today's plan does not do that that they may actually look at part b negotiations and ways to change the financial incentives, more transparency certainly promotion of generic drugs. i think all of that is a step. but we have a huge issue the top 20 drugs in 2016 had profits of $98 billion they took in $98 billion just for 20 drugs medicare buys the largest amount of any of those drugs. and to put that in perspective, the entire department of transportation budget is about

$20 billion. so we are talking about huge amounts of money coming into the pharma companies unfortunately, american consumers pay the highest prices in the world so some authority, some action that congress actually has to take to give authority to the federal government, which is the drug purchaser to do a better job with prices would be huge. >> let me turn to the question of massive increases in prices, which is what really catapulted this issue into the public's eye a couple of years ago with the epipen and other things, where there were major increases in a very short period of time. is there a way for medicare basically to say to drug companies, you can't increase -- we are not going to pay for an increased price that is x percentage points befoabove thee of inflation >> again, absent congressional -- right now, it

is against the law for medicare to negotiate against the law. congress has put in place a -- >> why is that, secretary? i wonder why? >> well, they have for years had support from both democrats and republicans. i would tell you that i think the pharma industry support from democrats is long gone but it takes congressional action to change that law. i was a governor, as you know, i could negotiate for medicaid prices we could negotiate for state employee health prices but the largest purchaser in the country can't do price negotiation. i would also say a part of the plan -- again, i haven't seen the whole plan i have seen some reports about the plan i was really pleased secretary azar called me yesterday and talked at a high level about some of the proposals today.

and i was very grateful to receive his conversation and he said -- he made it very clear, this is a step. they want to go further. and that's terrific. but there is an aspect of this that talks about raising prices for foreign countries, many of whom have a flat fee that they will pay and they won't pay more they have a framework around drug pricing i'm hopeful that that may have been misreported, that we don't really look at ways that we are going to try and make european allies or asian friends pay more for drugs or certainly price them out of the reach altogether of developing countries. that doesn't do anything for american consumers. >> i was just going to ask you about that, because azar has been using this quote that other countries are free riding off american investment and innovation it sounds like president trump is going to talk about that. i'm wondering what sort of

policies they could pursue to get other countries to pay less so that american consumers wouldn't have to pay as much is that realistic? or is that protectionist >> i think there is no question american consumers pay the highest prices in the world. but that's because we don't have a drug pricing policy. we don't have a framework. we have don't have any agency, whether it is hhs or the budget department or omb -- we don't have any framework for pricing drugs. so right now pharmaceutical manufacturers are capable of. >> chaing anything to anybody at any time we watched that happen. >> right. >> we have watched some very bad actors just jump up the prices that issue is not solved by charging other people more my concern is, we need the same kind of -- we need to talk about what an american framework for pricing looks like not necessarily to turn around and try and slap additional

prices on other countries. >> right. >> that really does not help american consumers >> let me turn now to governor tommy thompson, also like you governor sebelius a former hhs secretary. >> and a good friend. >> and a former midwestern governor we have the governor market covered here today governor thompson welcome. we apologize for the delay in getting you to join us i hope you heard what governor sebelius was talking about she emphasizes the need of medicare to negotiate with pharmaceutical companies for drug prices. that is now against the law. due agree that that would go a long way to bring some pricing sanity to the system >> it certainly would help president trump in his campaign indicated that the department and other people should be able to negotiate but you have got to give trump

and alex azar the new secretary a lot of credit because they are coming out and addressing this situation head on. they want more competition, more innovation they want to drive down prices and they are keeping their words. donald trump said he was going to make pricing of drugs an issue. already he is addressing it. and alex azar i know is going to do an excellent job. he used be the my general counsel. so any of these steps forward that the president is talking about are steps that's going to help drive down prices, make competition better, bring in more innovation, which all of us want and that is all positive i think it is a great day and a great step forward. >> governor thompson, how do we address the price discrepancies, the vast skrep skis between the price of a drug bought here by a consumer versus a drug bought virtually anywhere else in the world. raises prices abroad wouldn't

solve that problem. >> of course it would be. >> would >> no, it would not. >> why not >> raising the prices across the world is not going to help america. it's going to increase prices for other people i want to be able to drive down prices i want competition i want innovation. as president trump said let's start being super -- >> how are we going to be able to have all of that if we are. >> chaing lower price force people abroad and also lowering prices here. something has to give in the equation, doesn't it >> no, it does not you are going to make more competition available, bring more innovation, negotiate stronger with the drug companies and drive down prices. that's all good. just because we are playing too much -- paying too much in america because lot of us are very much in favor of innovation innovation takes place in the united states, somebody has got pay for that but the truth of the matter is, president trump is hitting this head on, and he wants to

negotiate. he wants the department of health and human services to be much more active and azar is going to do that just by raising prices around the world is not going to help us in the united states. that's just going to increase the profits for pharmaceutical companies. let's lower the prices for everybody. that's what trump wants to do. and he's making a great -- i think a courageous attempt to accomplish that. >> you mentioned the word innovation you know governor thompson if you talk to any pharma ceo about this they say we don't want to risk not having these life saving game changing drugs come out of this country and continue to hit the market. i mean, how do you walk the line between regulating this industry and risking some of these amazing drugs that we are seeing, drugs that had never existed before that cost hundreds of thousands of dollars, without compromising that >> you can't -- you can't have everything

you can't have everybody doing innovation it takes over a billion dollars to bring a drug the market somebody has to pay for that and compensate for that. i think the united states has been one country that has innovation every single one of us wants better drugs, especially for cancer we are on the cusp of so many breakthroughs. if you talk to anybody, they will say give us a new drug, a drug that's going to terminate cancer that's the panacea that's going to cost money but let's look at ways in which we can drive down the prices by competition, by negotiation, by being able to bring in new drugs to the market, by allowing other drugs to come to the market faster there's something in the new plan that the president is talking about, you have got to make sure that patents work, but you have got to make sure patents are not compromised so you drive artificially the prices up. there are many thing in what the

president and alex azar are rolling out that's going to be helpful for all individuals. that's what i support so strongly. >> governor, thank you so much for joining us today we appreciate your thoughts. and those of governor sebelius as well. >> thank you very much great to be on. >> coming up, we are going to find out what is in this fedex envelope it arrived on tuesday. contains a market prediction from mentalist ose perelman. he will join us to reveal what's inside come up. first the latest battle between wynn resorts board and elaine wynn. we'll be right back. e our own. as investment management professionals, let's measure up. cfa institute. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity,

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of the week. annie more howser heard one too many times that someone's mother loved her glass wear of the it should have been a implement but she took it as an indication she needed to modernize her brand. see what annie did to change her products to reach melanias -- mens ♪ cfa charterholders have proven themselves by passing one of the most rigorous exams in the world. demand the best. demand a cfa charterholder. cfa institute. let's measure up.

war of words between elaine wynn and the wynn resorts today. contressa brewer is following the drama. >> never ending drama. a wild counter-salvo aim at elaine wynn, the largest shareholder of wynn resorts. she recently launched an initiative called restore wynn aimed at overhauling the board beginning with the effort to boot john haggenback at next week's proxy vote. today the board publicly get her motives in a letter to share hold he is it says as an director who was an integral part of the old wynn it's difficult to see how she will be helpful in driving our evolution. the release i go nors the fact that the majority of the board is part of old wynn as is their

general counsel and the ceo who has been with the company since the beginning. in aiming for transpatientsy the board then publicized letters the to and from elaine wynn. she was trying to meet with the three women newly appointed to the board. notably the chairman writes, we expect that the discussions at this meeting would not be made public wynn's spokesperson calls the release of the letters unfortunate and points out elaine is not nominating herself for a spot on the board, that she sent a response letter today, again requesting a meeting with the new directors they are all going to be in las vegas early next week. she says there should be time for them to meet it is at this time and at that time and he said she said back and forth. the issue should be decided at the proxy vote on wednesday. >> in the meantime, the stock is at multiyear highs. coming up on "power lunch," we will tell you the name behind a mystery chart. this one here.

and ask two analysts if there is hope for a turn around whatever it is, it is down 13%. >> oze knows >> he will be joining uso t share the market prediction he made early whier this week more "power lunch" still to come

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hello, everyone. i'm sue herera here's your cnbc news update for this hour. california officials say a 14-year-old high school student has been taken into custody after shooting a classmate at their high school in palm dale, which is about 90 miles north of los angeles. a gun was recovered by the scene. the shooting stemmed from a dispute between the two. the injured student is expected to make a full recovery. president trump meeting with executives from ten auto companies at the white house to discuss the administration's plan to reduce gas mileage and pollution requirements that were enacted during the obama administration >> we are working on cafe standards, environmental controls we are working on how to build more cars in the united states we have a great capacity for building we are importing a lot of cars, and we want a lot of those cars to be made in the united states. and the top baby names for

2017 look at that cutie pie -- according to the social administration are liam and emma it is the first time that liam has reached the number one spot. but it is in the fourth year in a row for emma michael drops out of the top ten for the furs time since world war ii that is the news update this hour >> i went with a generic old school name that's not even in the top -- samuel. i went for my grandfather's name, really. >> that's a classic. >> sue, thank you. >> you got it. clean up in aisle 5. the s&p 500 is up 2% this year consumer staples and some of the world's best known brands are down 13% iconic names, general mills, kraft hooinz, proctor and gamble all down 20% or more this year clorox and pepsi down 19%. let's bring in the vice president and senior analyst

with wells fargo on the food story. john, clearly you have got the yields story that's in there somewhere. we have seen the ten year yield go to 3% and some of the dividend payers are less attr t attractive how much of it is big brands just not being popular >> a fair amount there has been a lot of concerns around private label are volumes bound to decline in perpetuity millennials are an issue there has been a lot of focus on these portfolios, how do the companies change do they refine their marketing images >> erin, this was a hot area household food beverage products for so many years. have investors given up. >> i don't think they have necessarily given up on those stories. but i think over the past few

years what you have seen is an outsized focus on extracting costs and driving efficients firms have shown you can't cut your way to growth from our vantage point it's about ensuring that these larger established brands are responding to evolving consumer trends in a timely fashion up until now they have proven they haven't been able to do so. that's why lower priced private label and smaller niche operators have been winning out. >> how much has the face of these stocks been determined by the entry of amazon into particularly groceries john it has 100 million prime subscribers. i know when i buy am fresh i have got generic choices offered by amazon which makes things easier that has to be driving prices lower for the other guys. >> we haven't seen an impact just yet e-commerce is 1 or 2% of u.s. food sales the issue is being off channel with the consumer.

what is on channel with the minutes, healthier snacking food categories is not what big food sells. we are seeing them improving portfolios to make them more reechb to get an emotional connection with consumers. marketing is outdated. it appeals to consumers in a different era. and the food categories themselves, there needs to be more appeal going forward. >> erin, john points to getting out of touch with today's consumer you sort of mentioned the same thing. give me some examples of that. and where the packaged goods companies are missing the boat. >> you know, i think they are trying in some cases to be too much to too many different consumers. so you take proctor and gamble's olay and they tried to target a younger consumer that totally backfired because they alien haighted their core consumer group since then they have if you would product from the shelf they have gotten back to the

core anti-aging messaging, updated the packaging. as a result that business is starting to grow again >> or you look at in proctor and gamble's stable you look at gillette which has been subject to disruption from dollar shave club and harry's and so part so there is disruption going on that's affecting companies, too? >> there is, you are seeing an emergence of challenger brands it is the ethos, what they stand for corporate responsibility, areas you haven't seen big food companies reaching to out to it is an emerging trend with the big food companies that hasn't appealed to millennial consumers, no longer is the product healthier, it's what is the company behind it standing for. >> i hate to paint them all with one broad brush even though they are all sort of dealing with these problems is there a stand out that you

think has got b unfairly punished that's within this group that's worth a buy from a valuation standpoint, i definitely think that proctor and gamble is poised for topline acceleration i don't think that aligns with market sentiment presently as evidenced by the shares. but we think the evident to rationalize their portfolio stand to enable to them to focus their resources on the highest return opportunities and ensure their innovation does align with consumer trends. >> we will leave it there. thank you very much. they have a new board member who wants to see some changes. john balm guard under and erin lash. to the bond market rick santelli is tracking the action >> you know we have three auctions this week we can learn a lot by them if you look at a november '07 three year note you will see here we have 269 the highest yield since november of '07. 269: the auction went off at

2664 which means you are losing money. the end is under selling pressure two year notes went off at 299.5. current chart is at 297. made a couple of basis points there. one week of 30s. went off at 313 on the auction currently trading 311. higher yield, lower price. making money there as well the point is that we had less inflation this week. the long end didn't move a lot lower but the key is it didn't move like the shorten end which was higher maybe those numbers just don't chain the future of the fed policy, and i think that's the interpretation here. fanlly, the dollar index boy, we lost a lot of ground in two days right now we are hovering at 9250 down on the week we haven't been down on the week in the dollar index. close at 9257. pay attention. could see selling pressure at the end of the session trade remembers very cognizant

of that level. >> something cool coming up on "power lunch." the mentalist oz perelman fedexed us a market prediction earlier this week. do we have the envelope. >> there it is. >> we all signed the envelope so there can be no funny business we promise you, we are going to open the envelope and see if oz was right. that is next on "power lunch." ♪ [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

prepare to be amazed our next guest left wall street believe it or not to start a magic and mind reading mentalist business he has performed all over the world we are excited to have wall street mentalist oz perelman on "power lunch" now. welcome. >> thank you for having me >> good to have you here i was at my doctor's office this morning and his name was oz.

dr. oz >> i knew that why are you telling me that. >> of course you knew that how did a nice electrical engineer from the university of michigan who worked at merrill lynch end up doing this? >> if you can believe it i was into stocks since i was a kid. i was always doing this on the side and i worked on wall street for merrill for a few years but this was my passion, my side project. the same thing that go into analyzing stocks go into analyzing people how do you make decisions. can i show you something fun before we open this. this is kind of do,,y, it is a stock journal where i made -- i broke down stocks. cokal when i was 10. all different pages all the way until now. i'm 35 there is 25 different stocks in here you haven't seen this book have you? >> i have fefr seen it. >> i want you right now in the moment to think of a number -- don't do ten i showed you it was coke koeg

coala. think of a number between 10 and 35 people are going to say i influenced you, signalled you with my change decide if you would like to change your mind or not. have you got a number in your mind can you swear you thought it now, there is no way you could know this. >> okay. what age >> 12. >> page 10 was coca-cola what did i look at when i was 11 >> microsoft. >> microsoft of course are you sure you want to go with 12 >> number 12 >> number 12 i'm going to turn this to the camera tell them what stock was that. >> nike. >> nike, 12-year-old kid, buying air jordans. 15, proctor and gamble, fedex, intel, can you make sure any one of these page is different kiss co, home depot, general electric, you picked 12. open that envelope yourself. >> open this envelope.

>> was this mailed out, all your signatures, the same one you have had under lock and key. open that up reach inside the plot thickens. >> there is an envelope inside the envelope. >> inside -- >> there is nothing else in here, ladies and gentlemen. >> is it all taped up. >> yes >> rapid fire, slice and dice. i don't want you to hurt your nails. tyler, right at the top. you have got to insert -- this guy doesn't open his own mail. >> i have got people. >> he has people for that. >> people who do this for me i don't like the paper cuts. >> before you reach in here you can see inside swear you didn't tell me you were going to pick 12. you could have changed your mind ten times for all it's worth. >> absolutely, there is no way he would have known -- look. >> what's in inside? before you grab it do you see a logo in there? >> i see. >> i don't want to up ttouch it pull it out. what is in there is nike it is stipulateled shut.

>> are there 1,000 logos in here >> that's the only logo. season me free stuff that stapled everywhere. >> it is so stapled. >> rip it open >> my goodness. >> sarah, i want you to focus on a stock, not nike. not coca-cola -- right now focus on your stock and i want you to pull up a screen grab of the exact price -- you can tell me, if you thought of this stock a second later it would have been a different price. pull up a grab of stock ticker, exactly what the price was at the moment you thought of it and don't let me see take that out, please, the prediction this was mailed to you on monday may 7th. i believe you got it, thank you fedex on the 8th open that up, i don't want to see. >> this -- >> i printed that myself i know exactly what it is. just the stock so i don't see tyler, please read it for us. >> this is being printed and

mailed to cnbc on monday may 7th, 2018, winner, nvidia will reach new highs with a 15% climb then rebound the stock will be trading at 160 one year from today. novartis will face a sticky pr situation associated with shady transactions but will weather the storm nicely and will be out of the news cycle in no time. >> won't even hear about it next week. >> and the surprise. >> surprise. unlikely fed fellows, apple and goldman sachs will join forces to announce some sort of product together >> what date was this? >> that was monday >> it's been in our possession since then >> let's get into it the stock ticker doesn't stop for anybody. no man, no woman, nobody did i influence -- did you even change your mind initially when you thought of one stock you thought of another one am i correct i definitely saw you shift the

eyes. >> i changed my mind. >> hold it against your body the first thing was -- i saw you react and be struck with coca-cola, am i correct? >> yes, how did you know that. >> i saw you tell everybody, what stock are you thinking of right now, it. >> pepsi >> i want everyone to see what i just pulled out. pepsi. >> that's wild >> but no, here's where it gets wild how much was it trading at the moment you thought of it >> $97.10 >> show the camera, please zoom in as much as possible. >> hard to do this on the screen what you can see is it's a screen grab. >> $97.10. if you would have done that a split second later, get as close as you can on this sheet of paper, as close as you can on pepsi. >> zoom in >> take a look, because imagine the hidden message i told you, a mentalist is just like somebody analyzing the markets. look as everything disappears on this sheet of paper. the exact price. >> no, this is cool!

>> you check right now what pep pepsico are trading at, it is not $97.10 that is absolutely imto possible i don't have a mike to drop so i'm going to drop the lighter. >> that's incredible >> it's $97.05 >> what was all this business with these things that we tore up >> i have no idea. >> it was. it was right on. >> that was really cool. come back any time >> confetti up in the air. >> tell us which stocks to pick. >> apparently nvidia what's your number one stock right now that you were thinking of number one number one, number one >> i'm not long any stocks, let's be clear about this. >> in your mind, number one on your list, what would be number one? tell us. >> square. >> that's number one >> on my mind right now. >> okay. i thought you were going to go number five. were you thinking lower on the spectrum or that was number one? i'm curious. >> now it's number one because before you said, what's a stock that you haven't talked about this week. >> so you're thinking about it, fresh. i'm behind square. thank you for that

>> all right >> i thought -- that wasn't a trick? >> that wasn't a trick i'm getting tips i need you to help me out. melissa's, like, give me some good stock tips. >> we got to go. thank you. if you were impressed by this segment, you need to catch his special tomorrow night on nbc. it's right after "saturday night live." it's called "first look presents, oz knows" and boy, does he know >> apt title >> i want to know what's in your portfolio. >> amy schumer is the host tomorrow night so it's going on a good lead-in a great lead-in. meantime, president trump to speak on drug prices we're looking at the potential impact coming up house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

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ythen you turn 40 ande everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something?

well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. welcome back to "power lunch. you are looking live at the white house where president trump is expected to lay out his plan for lowering drug prices. we'll bring it to you live as soon as it begins. in the meantime, our eamon javers is live at the white house. >> reporter: see that crowd gathered there there are a lot of members of the media in the rose garden waiting for the president right now, but there's also about

10,0 100 people that the white house describes as people who support lowering cost of prescription drugs. this should be a receptive audience for the president's message today. i'm told by white house officials they expect there will be a market moving piece of this announcement what they've put out so far has been fairly amorphous here on the specifics of what it is that the president wants to do on drug prices. they're saying that he wants some mechanism by which the government can negotiate a little bit more on -- in terms of the cost of the drugs that it buys, but they're not going to allow medicare, it would appear, to negotiate directly with the drug companies so, what is that mechanism what does this process look like that's the big question we're going to want answers to i wouldn't expect that to come directly from the president. that's a level of detail we won't get from that podium in the rose garden but i think you will get some paper from the white house later this afternoon which will spell out exactly what they have in mind here, and that might be something that's of intense interest to the pharmaceutical industry going forward. >> all right, eamon, thank you

let's head to bertha who's look at how the pharmacy middlemen could be affected. >> reporter: the administration has talked tough about cracking down on middlemen fees and it has weighed on the sector. the administration's drug pricing plan is dubbed american patient first, advances carrots and sticks for the industry. pharmacy benefit managers, cvs, express scripts all offer a plan and the administration wants to give them flexibility in designing those plans and as more tools to negotiate pricing. they will set caps on out of pocket costs, similar to plans for folks under 65 and require them to provide free generics to low income seniors as well as pass through part of those controversial rebates that they secure from drug makers at the point of sale. the industry has used those rebates to keep the overall part

d premiums low so that's going to be a question but if the administration also puts pressure on pharma list prices, one industry exec said the rebates become less of an issue. >> thank you very much we've got a news alert now on nafta and kayla has it for us from washington. kayla. >> hey, ty, the first and last trilateral meeting on nafta this week between the u.s., canada, and mexico just wrapped a few moments ago after just about 30 minutes time when the foreign minister and economy minister from canada and mexico respectively came out and spoke to reporters on the steps, they gave no commitment to this thursday deadline that speaker ryan and leaders in congress have put in place to actually get a deal to them in order to pass that deal by the end of next year. both countries saying that they are committed to a quality deal, rather than one that is rushed over the next week certainly, that is an important detail, because these negotiators have been meeting in painstaking detail all throughout this week they say some staff will be meeting throughout the weekend, but the bulk of the negotiations

will resume on monday. all three top trade officials will be available by phone they say they'll consult as necessary, but they are certainly up against the clock on this one. back to you. >> all right, kayla, thank you kayla tausche. we are moments away from the president's speech at the white house. how will his plan impact drug makers joining us are managing director at capital street, managing director of jeffries as well as our own meg tirrell. when you hear that he wants to let the government negotiate more and the mechanism within medicare is unclear at this point, what are you thinking what can happen here >> thanks for having me. well, there's a number of things i think that part b, which is the injectable specialty pharmaceuticals, there hasn't been a whole lot of negotiation in that part of the market and now the car-t and other

pharmaceuticals are very expensive. the way we have negotiation in part d, those are the oral medications that seniors take. so we could see something around part b in all likelihood, none of this would start for a couple of years because the 2019 plan year is already baked, but we could see a pilot, we could see a demonstration. most of the policies we've seen so far are really around the edges, moving the cookies between the cookie jars, so approximapbm rebates instead of going from the manufacturer to the pbm, going to the patient at the point of sale. >> you know, michael, ipsita mentioned car-t and that's a growth driver for a lot of companies. biotech is trading at a ten-year low in terms of p.e. multiples is this a weight or are there bigger problems with biotech in terms of the cash that they are expected to spend on m&a, which hasn't necessarily happened yet, maybe some failed acquisitions as well or not as -- acquisitions that didn't turn

out as promisingly as expected i'm thinking of gilead >> yeah, no, great question. i think that the trump speech, which we'll hear shortly, i think has been one concern, but i really think, honestly, the overarching concern with the biotech sector, which has been a big laggard, particularly in the large names, is really about the midterm elections which are also coming later this year, so most institutional fund managers i speak with, you know, they'll listen and pay attention to the speech i think there's a view that there will be a lot of details that are still unknown and won't go into effect for a number of years but really midterm elections and whether the balance of power of congress also just shifts the sentiment about drug pricing to be more concerning or less concerning. so, i think we got to get through some of that later this year, but these stocks have been beaten down in large cap, and i think a lot of this has been priced in. >> what's zbrinteresting, meg, s that they're all up today, or at least a lot of them. health care, biotechs, ibb, they're higher so what is the

thinking based on the few details that we know and how it will affect this industry, which could be most at risk. >> yeah, i talked to two drug industry ceos since the details came out last night from senior administration officials, both of them were saying it looks pretty benign unless president trump drops some kind of bombshell in the speech, which of course he could do if he named specific drugs, if he talks about trying to peg u.s. prices to a foreign government's price, for example, those would be big bombshells that have not been telegraphed so far. but the plan, as it stands right now, doesn't give medicare power to negotiate directly on drug prices, which is the big thing that the market fears so you are seeing that relief in drug stocks >> so it seems to be a burr in the saddle to the president that foreign buyers pay less than american consumers and buyers do is there anything he can do, really, to address that? i mean, he can't tell britain to pay more their national health service, can he >> the health and human services secretary was on "squawk box" this morning and he talked about

a little bit and hinted at trade agreements, could there be something we could do through trade to try to get other countries to pony up more on drug prices but you had kathleen on last hour who noted that's not necessarily going to lower prices for americans it seems like the administration wants to say, if other countries are paying more, then americans can pay less and that won't impact innovation and the money going into r&d however, there's a lot of question marks about whether other countries will pay more for drugs. >> ipsita, if the view is that this is going to be benign for the pharmaceutical industry, how much room can actually the president make here on lowering the cost of prescription drugs in this country, or is this just a political tactic ahead of the midterm election >> there's really not a whole lot that president trump or the hhs secretary can do to lower the launch price, lower the list price. one of the policies that they've been talking about is confining price increases from year to year to cpi, so that's something

they can do, but that doesn't really impact the initial price. so i think really, yes, as you point out, it's a campaign issue, one of the speakers was talking about the midterm elections, if, you know, the chamber's flipped democratic, democrats really want to address drug pricing too so there could be some of these legislative initiatives that take a life of their own on drug pricing so this is a theme for a few more weeks and months, certainly. >> you know, michael, you have more of a biotech tilt as opposed to a pharmaceutical tilt but if you had taken some of these drugs and modeled out price increases to cpi versus what exists right now, how would that impact how you view these companies? >> yeah, you know, i think two points one is, a lot of these big innovative new drugs like car-t or new pd 1 cancer drugs, you know, the substantial growth over the next five or ten years is not a price increase issue. a lot of these other issues are

legacy, old drugs. a lot of new drugs and a lot of the valuation is driven off innovation and a big transformative effect and a huge unmet need for a lot of these. so the whole drug pricing thing, i think, has been more of an overhang thing for the stocks. the stocks have been punished and beaten down because of the uncertainty and i think that we're hopefully going to see some tradeable bounce here just for this relief rally, just for the relief of this, realizing again, mid determine elections are still around the corner. we're not out of the woods yet >> ipsita , if you have a lot of new drugs that are very expensive and cost billions of dollars in innovation cost to bring to market and they are life-saving drugs and people will want them -- is the president coming out now yes, he is i will hold that question until later as we watch president trump get ready to announce his plan to try and curb runaway pricing in prescription drugs.

>> thank you very much thank you. please and i want to thank the secretary, secretary mnuchin, secretary ross, ambassador lighthizer, commissioner gottli beyonce. he stand up, scott. stand up and right to try is happening, right? we have that moving? right to try so important administrator, director mulvaney for being here with us today, the beautiful rose garden at the white house, we're all so honored to be joined by senator b bill cassidy please one of my great friends, senator

orrin hatch. thank you, orrin thank you. congressman michael burgess. michael, thank you very much thank you, michael congressman buddy carter congressman greg gianforte and numerous state officials from all over the country. today, my administration is launching the most sweeping action in history to lower the price of prescription drugs for the american people. we've wanted to be doing this, we've been working on it right from day one it's been a complicated process, but not too complicated, and today it's happening we will have tougher negotiation, more competition, and much lower prices at the

pharmacy counter , and it will start to take effect very soon my administration has already taken significant steps to get drug prices under control. we reformed the drug discount program for safety net hospitals to save senior citizens hundreds of millions of dollars on drugs this year alone. we're also increasing competition and reducing regulatory burdens so drugs can be gotten to the market quicker and cheaper. we're very much eliminating the middlemen. the middlemen became very, very rich right? whoever those middlemen were, a lot of people never even figured it out, they're rich they won't be so rich anymore. last year, the fda approved more than 1,000 low-cost generics,

the most in history, which has already saved the american people nearly $9 billion thank you, scott next, we're going to take on one of the biggest obstacles to affordable medicine, the tangled web of special interests not too many are sitting here today, but they used to be here all the time the drug lobby is making an absolute fortune at the expense of american consumers. no industry spends more money on lobbying than the pharmaceutical health products industry last year, these companies spent nearly $280 million on lobbyists. that's more than tobacco, oil, and defense contractors combined health insurance companies and other providers spent another $200 million to protect the status quo and to keep prices artificially high.

and they've been very successful doing it for many, many years. everyone involved in the broken system, the drug makers, insurance companies, distributors, pharmacy benefit managers, and many others contribute to the problem. government has also been part of the problem, because previous leaders turned a blind eye to this incredible abuse. but under this administration, we are putting american patients first. thank you. i've instructed the secretary to begin moving forward on reforms that will bring soaring drug

prices back down to earth. our plan takes steps to derail the gravy train by ending obamacare's twisted incentives that actually encourage higher drug prices. it also gives medicare part d plans new tools to negotiate lower prices for more drugs and make sure that medicare part d incentives encourage drug companies to keep prices low it is a big incentive to do that we are not going to reward companies that constantly raise prices, which in the past, has been most companies. frankly, alex used to run one of them, so nobody knows the system better than alex that's what we needed. and a very successful one. our plan will end the dishonest double dealing that allows the middleman to pocket rebates and discounts that should be passed on to consumers and patients

our plan bans the pharmacist gag rule which punishes pharmacists for telling patients how to save money. this is a total ripoff, and we are ending it. we are getting tough on the drug makers that exploit our patent laws to choke out competition. our patent system will reward innovation, but it will not be used as a shield to protect unfair monopolies. the fda will also speed up the approval process for over-the-counter medicines so that patients can get more medicines without prescriptions. finally, as we demand fairness for american patients, at home, we will also demand fairness

overseas when foreign governments extort unreasonably low prices from u.s. drug makers, americans have to pay more to subsidize the enormous cost of research and development. in some cases, medicine that costs a few dollars in a foreign country costs hundreds of dollars in america for the same pill with the same ingredients in the same package, made in the same plant, and that is unacceptable you can look at some of the countries. their medicine is a tiny fraction what the medicine costs in the usa it's unfair, and it's ridiculous, and it's not going to happen any longer it's time to end the global free

loading once and for all i have directed u.s. trade representative bob lighthizer to make fixing this injustice a top priority with every trading partner, and we have great power over the trading partners. you're seeing that already america will not be cheated any longer, and especially will not be cheated by foreign countries. the american people deserve a health care system that takes care of them, not one that taxes and takes advantage of our patients and our consumers and our citizens these reforms are just the beginning. in the coming weeks, we will work with congress to pass legislation that will save americans even more money at the

fo pharmacy for that, we need the help of congress and we think it will be forthcoming. we will work every day to ensure all americans have access to the quality affordable medication they need and they deserve, and we will not rest until this job of unfair pricing is a total victory for the usa. it will happen, and it's going to happen quickly. so, thank you again, everybody in the audience. thank you, secretary azar and i'd like to ask the secretary a very talented man to come up and do a little explanation, because we're going to see those prices go down. it will be a beautiful thing to watch. thank you. mr. secretary? >> well, thank you very much, mr. president. for that powerful call to action

and for your leadership on this issue. i can tell you, i interact with the president about every three days by phone or in person, and there has not been one discussion with the president in any circumstance where drug pricing and bringing down drug prices has not been the first and last thing that he has mentioned to me. you have made it clear how important it is to bring down health care costs for the american people and get better deals on drug pricing in particular that's why you've made history today. by laying out the most comprehensive action plan for drug affordability of any president in our history the problem of high prescription drug costs is something that's been talked about in washington for a long time. but that's all it's been talk, talk, talk we're privileged to have a president finally taking action by laying out a blueprint for solving these problems using private sector competition and private sector negotiation

we're not going to propose cheap political gimmicks the president's blueprint is a sophisticated approach to reforming and improving this unbelievably complex system. everybody at hhs is rolling up their sleeves to get to work on this let me just give a couple of examples think about all the time that everybody spends watching drug company ads on tv and how much information companies are required to put in them. if we want to have a real market for drugs, why not have them disclose their prices in the ads too? consumers would have much more balanced information and companies would have a very different set of incentives for setting their prices we're immediately going to look into having the fda require this president trump has called for tougher negotiation and better deals so we're going to deliver

on that too. our blueprint brings the latest negotiation tools to our government programs. it also expands private sector negotiation to parts of medicare where right now, hhs just gets the bill and we pay it these are just some of the more than 50 actions that hhs has planned or has under consideration in the blueprint for action released today. this is not a one and done deal. it is a comprehensive process and as the president said, it will take time to reorder an entire complex multibillion dollar system of our economy but we are going to drive real change in this system while continuing to lead the world in innovation and patient access to medicine so, thank you again, mr. president, for your vision, your leadership we're eager to get to work with real competition and with the right incentives, your blueprint is going to finally put american patients first. and at this point, i will be

joining sarah huckabee sanders for the press briefing this afternoon, able to take questions to provide more detailed information of all of the elements of the president's plan so thank you very much >> thank you very much >> and we have been listening to the secretary of health and human services, alex azar, outlining the blueprint that the president had first outlined, not too much departure as had been worried about on the part of the president, and alex azar made clear to say this is a blueprint right now. there are a lot of things under consideration. we saw an immediate market reaction, particularly in the pharmacy benefits names, manager names, the president said that he is looking into virtually eliminating this middleman from the equation a lot of these names, though, have bounced back so a very quick knee jerk reaction and we're almost at session highs in

terms of some of these names let's get back to our panel here ipsita, michael, as well as meg. ipsita, what's your takeaway from what was said, particularly by the secretary when it comes to giving medicare more negotiating tools? >> okay, where do i start? so, he had quite a bit ofangst for every single sector, right pbms, manufacturers, he didn't leave anybody out and unfortunately it is a complicated supply chain, so it is a complex system and i think what they're trying to do is obviously address each part of that chain, ultimately, with lower prices for the consumers the 44-page plan is out. i am not reading it, obviously, because i'm here and not back at my desk, but one thing that did strike me with alex azar is he said, look, this is a process. this is a high priority for the president, so maybe some investors were thinking, hey,

speech, one and done, but it sounds like we're going to get some more details over the next few weeks. one thing that's almost certain is to get at least a request for information or arfi which -- the goal is to obtain stakeholder feedback on which of these proposals to go forward with i'll be very interested as we were talking before the speech to see what is said on part b drugs, the injectable, infused, quite pricey medications, also what demonstrations may be done through the center for innovation over at cms >> michael, i'm sure you've been able to see some of the stock names and the charts scroll by what does the stock action tell you about how much tooth this proposal has and it would suggest to me that there was an initial reaction down and now, investors are coming in and pushing those prices back off their lows and sometimes from the red into the green. what does it tell you? >> yeah. i mean, this is a reaction that

i think explains that there's an initial fear about everything he's talking about, but a lot of it was absolutely not new. it was discussed previously, rebate sharing, medicare part b, and talking about trying to get other countries to adjust their pricing and stop subsidizing the rest of the u.s. so what i think we just saw is nothing totally shocking the stocks had priced a lot of this in over the last few months and last year, quite frankly, and we're going to see, i think, a short-term rally here based on the fact that nothing was too scary. but again, i think for the rest of the year, we still need to think about midterm elections and where this is going and the rfp and all this stuff later >> and the fact that this is a bipartisan issue this does have to pass congress but this is something that democrats and republicans can agree on, that we're paying too much for prescription drugs. i saw you looking through the bullet points. anything stand out >> they went through in a little more detail in this 44-page they

just released. it doesn't give all of smar pow -- medicare power to negotiate. just giving part d a little more flexibility. as far as part b, they're just different kinds of drugs >> there was talk about moving some of those drugs to enable negotiations >> in the 44-page document, it does look like there would be certain situations where they would give plans the power to consider when it might be right to move a part b drug to part d in order to lower the price. one thing that i'm interested in is they mentioned legislation that might be introduced over the next coming weeks. and i -- it wasn't clear what that was going to be about but they said it was around lowering prices at the pharmacy maybe that's something about not allowing pharmacists to tell patients when prices could be lower. >> the secretary mentioned he would be at the white house press briefing with sarah sanders and he's also holding a conference call. you don't usually hear that, for

sellside analysts covering the sector >> this came up from ever core, the video that he did today, he said that the hhs is going to hold this call at 4:00 he thought maybe because there would be some confusion after the speech that needed to be cleared up remember, eamon said the administration signalled there would be market moving news in there so i don't know what that was supposed to be >> i don't know if they anticipated these names to be traded higher. meg, thank you ipsita and michael, thanks to you as well. the markets did give up much of their gains during the president's speech, very flatlining as far as the dow and the s&p are right now. dow still up, yes, still up a little bit for a seventh straight day the s&p on track for its biggest weekly gain in two months. where the money is going and what you should do from here when we return that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow.

with ingenuity, technologies, 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.

hello, everyone, i'm sue herera here's your cnbc news update at this hour. governor jerry brown proposing a $137.6 billion budget for california amid surging revenue. it's up nearly $6 billion from his earlier proposal in january.

he wants to save most of the surplus to protect spending during a future recession. in essence, setting aside $13 billion in a rainy day fund. an earlier dam collapsed in northwest kenya earlier this week, killing dozens of people after heavy rains. cancer researchers in the netherlands say they have discovered a way to kill melanoma or skin cancer that has become resistant to the unususul treatments the patients responding to a drug that is produced in the hospital pharmacy. and a new study from drexel university claims chemicals from cigarettes may be lurking in rooms where no one has ever smoked that's because the toxins that linger on clothing and furniture enter and spread around buildings through ventilation systems. so-called thirdhand smoke can still be dangerous for people with asthma. you're up to date. sara, back to you.

>> sue herera, thank you we're keeping our eye on the markets here stocks give uing up much of ther gains but markets hanging in there. let's bring in a cnbc contributor. you've been sort of skeptical of the fact that stocks can rally here did this week do anything to change your mind >> well, you know, kind of come back to the mid of what we've seen top to bottom and we've seen, as everyone has pointed out, 1,200 point rally in 7 days if today holds and it's a correction of the correction so sometimes you have to try to figure out whether this is the resumption of a bull market or just what they used to like to call on wall street a dead cat bounce it's been a pretty impressive bounce but not all the damage has been repaired. i think, so far. >> so who say you to that question that you pose >> i'm still more concerned that this is as much -- and i think joe and i both talked about this over the last couple weeks, it's a time correction and we may not just take off to the races

you've got some head winds coming in the way of higher rates, higher oil prices that would offset the benefit of the tax cuts as far as consumers are concerned so we're getting energy leadership which is not necessarily the type of leadership that you want for a sustainable market it's not going to move the needle 8% of the s&p is energy. >> let's bring jeff into the conversation cornerstone financial partners, cofounder and managing partner do you worry about risks like higher rates, higher oil prices, before you can really confirm that this little rally that we got this week is for real? >> yeah, i think it's that -- it's been that tug of war of cat -- catalysts of above and negative, interest rates, all you mentioned but i think the positive, we've had a great earnings season, about 90 bill clinton -- we're seeing positive earnings i think all those are good factors. doesn't mean volatility is gone or is going to be gone away, so i do think, yes, there is a not a lot of catalysts of negativity

but there's just as many positive catalysts to move this market forward and i do believe, you know, with the volatility, give opportunities but markets could continue to rise and should have a good year for 2018 >> when, ron, i'll turn to you when does oil start to pinch the broader market >> i think it already is we're going into the summer driving season so from a consumer perspective, that's going to offset whatever modest benefits individuals have gotten from the tax cuts. i wrote an article about conflagration that might be building in israel and iran and u.s. backing either or both. and the possibility of a real altercation developing there could drive oil easily to $100 a barrel and it looks like the world wants higher oil prices,particularly some of these players. saudis need $88 oil so i think that's an issue and i think we're starting to see this play out geopolitically and it's a risk that i don't think is fully

discount bid t discounted by the markets yet. >> interesting move in tech. i mean, we did get some good earnings from the likes of facebook and amazon and cramer was saying yesterday that turned the market around higher and get some resumption in terms of tech leadership, not to mention warren buffett doubling down on apple. >> sometimes we need the positive from the big boys out there and facebook, amazon, apple, certainly google, you know, some of the biggest as they get to that -- it's that fight to the trillion dollar number you know, what it does help is, again, bring investor confidence and sentiment up so when you look at areas in the market, we got -- there's nothing that's truly undervalued. a lot of sectors are certainly overvalued so you got to dive deeper into where there could be opportunities and energy is a great way to try and find opportunities. i know i've talked about, with my clients, that mlps or master limited partnerships and the

pipelines with energy prices rising, you still have a 30% to 40% of mlps are below their average historical prices so there could be some opportunities there in the energy sector along with refiners as the energy prices rise, the call for theu.s. to export more oil and gas, all good opportunities for companies here in the mlp space as well as refiners >> s&p energy index up nearly 4% for the week, guys thank you very much. jeff carbone and ron, who's buying pharmacy benefit managers hand over fist >> along with apple and mcdonald's, yeah >> thanks. >> and mlps. coming up, the rise of the robots, could a real life iron man be taking off in the near future aditit is live with more. >> reporter: we are at the tech crunch robotics session conference this is penny, she serves dinner at restaurants i'll tell you re authemobo t coolest robotic technology

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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. news alert >> we're starting to get reaction to the president's speech aetna's ceo issuing a statement,

saying payers and pharmacy benefit managers often negotiate rebates on list prices, talking to the president's comments about the whole middlemen driving up higher prices on drugs. and he says, but those actions alone are not going to protect consumers from unadjusted, unabashed price increases. for aetna, he says the average price of brand name drugs has increased over 40% and he talks about the pharmaceutical industry has spent hundreds of millions of dollars on advertising and lobbying campaigns blaming others this is something i've heard from a number of industry players on the benefit side, saying, look, big pharma has painted us as the bad guys, but they really should go after them as well. >> yeah, everyone's saying it's not my fault don't look here. >> well, i think what people are saying is, don't just come after one side this has to be something where you go after all of the different forces, because if you push one side, that's just going to raise prices on another side.

>> all right, the aetna ceo with some early reaction. bertha, thank you. aetna higher along with other insurers we know robert downey jr. has super human abilities in the film iron man kwoez but it turns out the concept isn't all that farfetched anymore >> dottie: >> reporter: this is a cool aspect of the story. we are at the robotics conference and one of the coolest segments of robotics is wearables and this is one company that is doing that it's called suit x and the people behind me are wearing these exoskeletons it turns them into iron men of sorts with super human strength, allowing them to double the amount of weight they can carry safely these exoskeletons are being used by dhl, ford, ask chrysler fiat it's one of the ways robots are transforming entire industries boston dynamics spot minirobot captivating the crowd to the this conference, this just one day after the soft bank owned

company released video showing the four-legged star running up and down stairs and dodging objects. its two-legged companion, the atlas, taking jaunts around the neighborhood the increasing agility of robots is transforming industries like agriculture. check out this pliable robotic arm, delicate enough to pack eggs into cartons and pick tomatoes off trees john deere also investing heavily in robotics. its automated machines outfitted with computer vision technology. >> like facial recognition, it goes through the field and identifies weeds versus crop. >> reporter: and investment into robotics is exploding. last year, vcs invested about $1.7 billion into robotic start-ups, comparing that to $750 million the year before >> aditi, thank you very much. welcome back to "power lunch," everybody. the latest on spotify's decision

to remove certain songs from play lists, millennials saying meh to snapchat, and is facebook getting into block chain a lot to talk about. let's bring in julia boorstin from l.a start with spotify, julia. >> well, tyler, this has been a really controversial issue, and it all started yesterday when spotify changed its policy about hateful content and the creators of hateful content and started to weed out some artists that they did not approve of their sort of moral compass, their way of being the world and they pulled songs from r. kelly from all those spotify play lists so now other artists have started to weigh in. 50 cent tweeting, spotify is wrong. they're not even convicted of anything so this, of course, comes as critics who accused r. kelly of sexual misconduct are staging protests, they're threatening to stage a protest at an upcoming show if it isn't cancelled and a lot of people are saying that this is the fooirs time that time's up and me too are really

hitting the music industry and it's interesting to see how spotify is responding by taking more of an editorial stance. >> is it partly lyrics and partly behavior that's at play here >> well, right now, the change that was announced yesterday, and what we're seeing play out in twitter and all this conversation, it's really about behavior right now. so there are -- there is content that spotify will not promote, say, if it's content created by white supremacist artists, they won't promote that content they pulled that down. but the change is now they're saying they don't want to promote music from people whose behavior is violent and is sort of not anything they want to be affiliated with. >> but does pandora and apple music and everybody else still have r. kelly? >> so, yes, they do, and here's the thing. r. kelly, you can find him on spotify if you search for him and you just look for him in a list of people but spotify really relies on its

play lists, and this is how a lot of people find and listen to music on spotify it's sort of the one reason spotify is so popular. so, by removing r. kelly from those play lists, it's making a statement of sort of editorial statement, and it could really impact the kind of revenue that r. kelly gets. >> all righty. topic two is millennials i love those millennials, but they're not loving snapchat's redesign tell me about it >> well, they're not loving snapchat's redesign, which is exactly why snapchat is making even more changes. they're starting to roll out more changes to the redesign on ios devices. we saw our changes start to impact our phones here in the l.a. bureau just yesterday now, we have this amazing chart that shows consumer sentiment toward snapchat. there is a chart of the millennial response to the brand of snapchat and if you look at this index, consumer sentiment was really strong for snapchat among millennials up until the redesign, and then it plummeted

and you see it falling to a low of 8 in april from a high of about 30 so, this is really shows reaction to the redesign, and i think that what's really key here is snapchat is responding to this. and they're now implementing some more changes that are not going to bring it back exactly the original version of snapchat that everyone grew to love that they changed back in december, but remember, after they made all those changes, over a million people signed a petition saying bring back original snapchat, but unfortunately for snapchat, in their last quarterly earnings, the changes that they made didn't help them from a revenue user perspective and so now they're trying to adapt the changes, so consumers feel more comfortable. >> and the last one is facebook and block chain. >> facebook is really interested in block chain in fact, they announced big reorganization of the company earlier this week, and they took david marcus, who used to run the messenger business, and now have put him in charge of investigating block chain and

figuring out what facebook's going to do with block chain now, david marcus' history is very relevant here before he ran messenger, he was president of paypal and before that, he ran a mobile payments start-up called zong, which he sold to paypal so this is a guy with a long history in payments and perhaps most interestingly, he's on the board of coin base, which is a really big crypto currency company. so now david marcus' job is to figure out what facebook is going to do about block chain. obviously, there's huge potential to integrate payments into messager as well as throughout facebook. they're already starting to do some of this in messenger and david marcus is going to be the guy to figure this out there was a report that facebook was going to launch its own crypto currency and there was no statement there, facebook just saying in to statement to us, like many other companies, facebook is exploring ways to leverage the power of block chain technology and that's what their group is working on right now, led by marcus

>> lots to talk about. julia, thank you and speaking of facebook, the stock is actually back to its pre-scandal levels, but a threat of regulation remains, so how do you trade it? is it time to jump in or should you be steering clear? trading nation will tackle that next let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. welcome back, the postal service lost $1.3 billion. they have been a target of president trump. the post office is doing substantially better, but targeting amazon >> yeah. i think everybody including the postal service would like to be doing financially better right now. the losses did more than double last quarter, but if not for package deliveries, it might have been worse, so where it first class mail continues to fall and retiree costs balloon, pitch volumes and revenue grew again. on an earnings call this morning, the postmaster general called the package business vitally important to the agency of the financial health pointing out it provides critical funding to support infrastructure needed

to maintain the postal service's mandate to deliver to all 650 million addresses in the u.s noting that the parcel business funded almost a quarter of institutional costs last year. while she did not directly address the recent criticism from president trump, arguing that amazon's taking advantage of the usps, she did call package pricing, quote, hyperprice competitive environment, and the usps not funded by taxpayer dollars works with consul taptants and pricin approved, so they have a general task force review, ordered by the president, deserved to be studied and larger public policy issues addressed, and calling on lawmakers for elective reform so the usps can, quote, return to financial stability and operate profitably saga continues a lot of reforms for the postal

service kicked around, but nothing moved forward yet. >> morgan, thank you time for trading nation now, looking at facebook today because it has retraced all of its data scandal losses soaring 25% from the march low is the rally in this for real? craig johnson, and michael is the senior portfolio manager, craig, how did the chart look? >> well, i think facebook is really a show-me story at this point in time. you see this really nice relief rally or maybe a new high, yet to be determined at this point, and i see a lot of technical damage done in the stock, and as i look at the name, i think you got to be a little more careful. you got the 50-day moving average closing back below the 200-moving day average, considered a death cross now, i want to show you one chart. go and look at prior data scandals, there's the chart of facebook compared to equifax you had a huge data scan dal

there, and you had this huge 30% selloff, big relief rally, never got back to new highs, and you look at facebook, something very similar has happened here. big selloff, and not back to new highs, but close, and that's what you got to watch. i think it's going to be a show-me story. i'm not rushing back into this stock at this point in time from a chart perspective as i think there's going to be, say, failed relief rally from my perspective. >> i understand you're comparing the chart patterns on those two, but completely different stories, mike, fundamentally we saw mark zuckerberg in congress, the stock rallied on that day there is still this looming threat, though, of more regulation in the industry >> yes, there is there's still a threat of regulation, but we own the stock with no intention of selling it. very comfortable holding it here you know, there's a lot of anxiety because it actually in the fourth quarter, facebook user metrics ticked down, and then the cambridge scandal hit

taking the anxiety level up to a new high, and how did they answer that? well, they came out and beat user metrics, engagement levels went up, beating earnings, estimates, and numbers are up. the last time the stock was a beat level, numbers were lower, so estimates have been revised up, stock is cheaper, and we think it's a strong company. the models are in tact we are comfortable holding it, and if people wanted to add it here, i think they are okay doing so >> yeah. lower valuation. guys, thank you so much for joining us on facebook for more, go to tradingnation.cnbc.com check please is up next. and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> in a losing trade, avoid letting your emotions get the best of you. too often traders want to add to a losing position, but experienced traders will say your first loss is your best loss oeror, take a small

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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley check please, many surprises today. the number 12, it was referenced in the book of stock, and in an envelope that was sealed, stapled, out comes nike as the stock. the other one was where he picked the price of pepsi. >> came to me before the show,

1 12:42, pick a stock, screen price it, i did it during the show, said the stock was pepsi and it was $97.10. exactly what i had >> the envelope was sent on monday monday there's no way in the price. >> yeah. >> the stock price was sent to us on monday there's no way that could have been tampered with >> amazing >> only stock tips was nvidia would climb again, reporting earnings yesterday, and cramer picked up on that. >> there's a special on "snl," tune in then >> absolutely. >> health care, best performing sector today, ivp, etf in the b biotech sector, best day in a month, following a short term rally. unveiling they did not have much as they worried about by investors. >> more bark than bite on president trump's policies

>> so far. let's go to the white house on that note. and president trump. >> american innovation, and the fourth is high out of pocket costs, especially for our seniors. as you heard today, the administration made a lot of progress in this regard, so in the first year and a half in office, the fda approved more generic drugs than ever before in history, saving $8.8 billion in the first year. we also changed medicare's reimbursement rules to bring down the out of pocket spending for senior citizens, saving them $320 million out of pocket on the drugs that they buy each year that work and work laid out now in the president's blueprint has four strategies to fix the complex problem we face. first, increase competition. second, increase better negotiations third, incentives to actually lower list prices.