show >> who do you think can throw up more, me or joe? >> i tell you what, i have seen what you have done in the. >> i think he may have you, joe be careful -- >> i have seen the way he drives a golf ball. >> nrg it might explode to new highs. >> thank for watching. power starts now >> i'm michelle caruso-cabrera here's what's on the menu. macy's rallying. the stock is up 30% this year a. slew of other names rebounding in a big way from their lows we will go inside the numbers. high hopes that's a bad pun a new report says new york would hit the jackpot if the state legalizes pot. hundreds of millions of dollars could be at stick. the city comptroller is going to join us to make his case help wanted. more people are flying more planes are in the air do you know what there is not more of?

pilots there is a huge shortage of them what the airlines doing and wh ? they are raising concerns. >> welcome to "power lunch." i'm tyler mathisen so glad you could be with us on this rinny wednesday in new york after going nowhere much of the morning the money is carving out modest gains the dow back to being positive for 2018 small caps are rallying. the russel 2000 hitting record highs. steel stocks are rallying led by u.s. steel it is trading above its 50-day moving average for the first time since march and the etf that tracks the group, the slx on pace for its sixth day of gains consumer names are moving as well nike and under armour are both up big. >> i'm sarah eisen after testifying before conditioning about facebook's data scandal mark zuckerberg

will meet with european ileader to talk about security issues. >> buying the panthers for $2.2 billion. the team was up for sale following allegations of sexual harassment by the owner. tiger global management has sent a letter to game stop's board urging it to launch a strategic review to rebuild investor confidence in the wake of management departures >> breaking news on north korea. president trump casting doubt on whether his summit with kim jong-un will still happen next month. ayman javers is live at the white house. >> the theme is uncertain about that summit, which had been scheduled for june now it's unclear whether it is going to happen at all sarah huckabee sanders was out talking to reporters here this morning talking about it in a conditional way, using the word if take a listen to what she said.

>> we will continue with a campaign of maximum pressure if that's the case. like i said, if they want to meet the president we will be ready and we will be prepared. if not that's okay. >> the president talking to reporters in the oval office today as he was meeting with the president of uzbekistan. reporters tossing guest questions to him about north korea. the president saying simply ehaven't seen or heard anything specifically we will see if it happens. the president not willing to go beyond that phrase, we'll see if it happens so we will wait and see what does happen here but at this point, white house aides are saying they just don't have very much information here about what's going on on the north korean side. some questions about whether kim jong-un's lower level leadership are sort of reigning him in in terms of his domestic politics, whether there is concern about him traveling overseas or whether all of this is posturing and deal making in advance of the summit trying to throw the

u.s. side off course not clearing whether or not that's going to happen but they are scrambling to get information here at the white house. >> thank you aman. the markets turning a bit of a blind eye at the moment to the daily developments with north korea, the dow edging higher right now. we'll see if it ends that way. bob pisani is at the new york stock exchange hi bob. >> hello tyler if you are looking a the fries and volume action it doesn't seem like a very exciting day but some very important things are happening. two things number one we have our first major breakout the russel 2000, the small cap index, has hit an historic high. we were looking at 1615. that was the intraday historic high 1610 would be the closing high hit that a short time ago. market lifted as that happen second important thing is no selloff. we have been lifting modestly in the milled of the day of the yesterday stocks were down on inflation concerns the yield on the ten-year over

3. 3.03%. not a second day of selloffs going on today raises interesting questions about what's going on in the markets here are the markets starting to get used to the idea of higher inflation and higher rates certainly used to the idea of the ten-year over 3% the economy remains strong the gdp we are talking about 3.6% for the second quarter instead of 2.3%. is the shock of higher prices starting to wear off obviously if we go to 4% that's going to be an issue but for the moment the market seems to tolerate slightly higher rates one thing that's a bit of a problem is that stronger dollar. we have been seeing the impact on these emerging market exchange traded funds, turkey, brazil, south africa as the dollar has risen these stocks moved down. when the dollar goes up, interest rates go up here it makes investing in the u.s. more attractive and you pull money out of the emerging markets. an old story

it's happening again we are just near the highs for the day. >> we have seen all sorts of carnage in those hike as well. macy's is bouncing big from recent lows. it's not the only stock. >> are there other stocks that have seen similar bounceback moves like maszy's we looked at the s&p 500 stocks and found which have had 52-week lows since the fall. if that happened, how many of those stocks rallied by at least 30% during that time it turns out around 20 stocks in the s&p have met all of these those criteria first of all, a video game maker, electronic arts which hit a low on december 5th. it rallied back 30% or so since that time. another one to keep an eye on is under armour it hit a low on november 6th since then we have had a desent rally there.

over 70% during that time. who is in the mood for car nitas? it is "power lunch." february 9th shmt hit a low then since then, 75% rally. many of these stocks are in multiyear down trends. so this is a great performance but there is a long way to go for some of them to get back to historic levels. >> stocks rebounding from yesterday's selloff as you can see on your screen are equities still attractive with bond yields on the rise at 3% or higher david lef covits, and ben pace join us. david and ben, welcome good to have you with us david, what do you like here do you like bonds now because the yields are higher and you might be able to pocket a nice return just holding on and cashing the coupon or do you think stocks are still the way to go? >> tyler, we are overweigh stocks in our portfolios bond yields have moved up but i

think we have to keep the move in perspective it's still been relatively modest and when you look at the earnings yield that is on offer for the s&p 500, 5 or 6% versus what the yield that we currently see on bonds, which is around 3%, the valuation still in our view favor bonds -- i'm sorry, the valuations favor stocks and there is still a decent amount of runway in our view before higher interest rates begin to dent the appeal of stocks at this point. >> ben, my notes indicate that you like industrials, informing tech, energy, and health care. but i would like to get your reaction to what bob just mentioned. that is a nice run in the russel, smaller cap stocks what do you think of them and going forward would you play them more strongly than you would larger companies >> tyler, it's been strange because we liked small cap last

year relative to large cap mainly because we thought they were bigger beneficiaries of tax reform it was frustrating that large cap outperformed then the outperformance really started when the protectionist rattling wet on with the thought being that small cap companies aren't exposed internationally as much as large cap i think this recent run-up in russel 2000 was for the right reasons beneficiaries of the tax reform because they pay higher effective tax rates. any economic growth helps them as well. they are performing the way we thought they should have middle of last year. >> david, since you like cyclicals over defensive names, do you think this economic rebound that we are seeing -- yes, we are expecting a very strong second quarter -- is topping out or has further room the run? >> in our view, there is more room to run. if you look at the forward indicators, they are all signaling that the expansion has more room to go. one of my favorites is the fed

senior loan offices survey that's a great leading indicator for profits. banks are continuing to ease credit standards on new loans. that means the outlook for profit growth remains very robust, even despite -- even if you strip out the impact of tax reform so i think -- from has been a lot of concern about sort of a peak in earnings a little bit of concern that we saw had the first quarter. i think that's very misplaced. i think we are going to continue to see new hues in earnings and that's likely to propel stocks higher to every the balance of the year >> you like industrials. seems like you agree with what david was saying. >> week we are thinking if this economy extends and the expansion extends into 2019 and 2020 it's going object on the back of capital sending. they are the beneficiary of the tax reform industrials and technology is where most of that spend occurs. we like the top line growth we are seeing in both sectors we think that will extend

through the rest of the year. >> we will leave it there. thanks. peace talks with north korea hitting a snag president trump not even sure now that his summit with kim jong-un will still happen. is there still hope? or was kim just toying with everyone all ang will debate that next on "power lunch." it's absolute confidence in 30,000 precision parts. or it isn't. it's inspected by mercedes-benz factory-trained technicians. or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned, or it isn't. the mercedes-benz certified pre-owned sales event. now through may 31st. only at your authorized mercedes-benz dealer.

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it was gearing up to be the most anticipated meeting in decades. now the june 12th summit between kim jong-un and president trump is shrouded in uncertainty president trump today saying he will still insist on denuclearization of north korea. and the president's comments coming after the north koreans cancelled the high-level meeting with the south koreans and threatened to cancel the meeting with president trump if washington insists on pushing them, quote, into a corner on nuclear disarmament. let's get more perspective joining us now is professor of korean studies at thufts university good to have you here, professor. like your haircut. >> thank you. >> we have seen this from north korea before, right? isn't this the same old movie they do over and over again? haven't they threatened to pull out before >> it's always tease, tease, tease, as the song "should i stay or should i go" goes.

north korea just did this in january on the day of about the north korean head of the del rags, miss hooung, the singer was to show up in south korea. north korea cancelled in the milled of the night. got the south koreans nervous and behaved plightly saying nothing but good things about north korea. and then she showed up then they did it again, ten days later, cancelling a scheduled joint south korean/north korean pop concert in pyongyang this is how north korea tames its adversaries. i think a u.s. has shown a serious interest in holding a summit meeting between president trump and kim jong-un by sending mike pompeo twice now within 40 days or so to meet with kim. so north korea is merely trying to increase, enhance its leverage in bargaining with the united states by doing this. >> joining us, too, is also hans nichols. he's a reporter at the pentagon. hans, what are you hearing we already heard from the administration a couple of times

kind of shrugging their shoulders, saying okay, you don't want to have a meeting fine with us playing it tough. >> they are trying to get into the back and forth on what the military drills entail you hear protests from the north koreans on this drill. max thunder. there is something back and forth in the korean press that a b-52 is scheduled -- a big airplane with nuclear capabilities was scheduled to participate and then wasn't. here at the pentagon they are saying there was never any plan to have the b-52s participate in this exercise. here it's on the tactical conversation, what the exercise is about, the importance of sper operability and why you have an alliance, to make sure you are working together as for the strategic alliance, they are saying listening to what the president is saying, and if he is going full steam ahead and wants to have these negotiations let him go forward

and negotiate from a position of strength. >> do the pentagon believe kim jong-un is destroying nuclear facilities as we speak. >> no. we don't have evidence to suggest they have gone that far. they monitor things closely. when you look at a couple of the openings from the mountains that some have been sealed from previous explosions n. terms of open source documents and what the pentagon looks at through their own highly classified systems there is no indication this facility has been closed for business it's easy to on up the mining tunnels. ing aettes is the term for them. it's easy enough to open up new openings and get into the tunnels and make it operable again. >> there is posturing back and forth, tweeting and rhetoric until this happens i know the north koreans have a high threshold when it comes to sanctions. but what is at stake here?

what could three into north korea and other places if they do agree to denuclearize during the clinton/bun continuum between 1995 and 2008 the united states on the record gave north korea $1.3 billion forth of food and fuel aid for what for north korea's reputed lies of denuclearization. south korea during those heady years gave the north almost $1 billion. most of that in cash, for north korea pledges of denuclearization so things could change pour the better certainly for north korea. in the meantime, what north korea seeks is a drawn out open-ended never ending negotiating process, not an actual resolution to negotiations but a negotiation process which will compel the trump administration to make various concessions like prematurely lifting sachks. >> what do you think of the white house's response so far,

whether sarah huckabee sanders comes out and says, hey, we are committed to denuclearization. they don't want to hold a meeting? fine with us >> that's okay for now but i think we can see which party is more desperate for a meeting. and i think the meeting will eventually take place. it may be pushed back a little bit because it's in the interests of both north korea and the united states. there will be political victories for both leaders in the short-term in the wake of a summit meeting and bond ammi and change in dynamics in the region at the same time, kim has far more to gain by playing this game once again and engaging the u.s. in never-ending negotiations than trump. >> so, do you have any expectation or hopefulness that eventually this process results in the denuclearization of north korea and peace on the north korean peninsula -- on the korean peninsula >> threw through conventional

diplomacy, no. because we are talking about nuclear diplomacy, which is really international politics played at the highest level short of waging war. we are not talking about trade, sanctions, or trade quota, import quota, and so forth unless kim jong-un is presented with a credible specter of extinction, perhaps an imminent apprising once his ability to placate his generals is diminished, increasingly -- thls we come to a crisis point, north korea will not change. it will not disarm it will call for mutual disarm men talks and drag this process out so that it can gain more goddgo goodies from the u.s., from south korea, from japan, and certainly china and russia as it has in the past. >> got it. gentlemen. good you have to on. sung yung lee of the tufts school and hans nichols. the price of oil up 17% this

year above $70 a barrel times should be good for producers, right up next we will go to texas for a look at pipeline problems they are having there achantilly is here we will ask her about the changing face of the music industry as well as spos phi's recent controversial new stand "power lunch" will be right back ♪ many small businesses, from kitchens to factories to contractors, rely on their equipment to serve customers every day. when equipment is broken, it means lost revenue. trusted choice independent insurance agents offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work.

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welcome back to plurchl. the price of oil holding steady

at $70 a barrel today. not everyone is able to command that price brian sullivan joins us from houston with more on the problems in the permian. hi, brian. >> michelle. thank you very much. good to be back on "power lunch. it's the embarrassment of oil riches or maybe the black oil swan that nobody saw coming, which is is that there is now so much oil coming out of the ground in the pearlian basin that it's hard or expensive to pipeline it truck or train it anywhere in other words there is so much oil coming out people don't know what to do with it unless they have pipeline capacity here to the hotter than hello health conference we spoke with them and asked them to explain in plain english why prices in the permian are falling for some companies. >> the growth has been so much it outpaced the groetd in pipeline capacity out of the basin. in order to get it moved out of the basin you have to be willing

to take a discount so that will be remedied but in the short-term it caused this differenttial as we call it to go up again, we anticipated that issue. we have a long haul capacity out straight to the gulf coast the rest we locked in our base differential at wti prices sometime ago. >> it's also now guys not just the pipelines. it's other ps, truck drivers, labor is so short we spoke with the ceo of occidental petroleum. she was confident we are going to get pipelines next year but another growing problem in the permian is people. >> i think there is still a significant amount of oil in the ground i think what's going to be a governor on the production from the permian will be take away sporadically but the pipes will be built so the bigger governor on pace,

activity, and production, will be the availability of competent crews. and so i think that's where the next bottleneck will be for all of us. >> so the spot price guys as you know, 71 bucks a barrel, 70.50 a barrel, there are trades being done in in midland, the heart of the permian at 58 and $59 right now. if you are a midsized company and you don't have pipeline access you have to sell your oil at a discount. something for investors to watch as the permian boom rolls on. >> that's an embarrassment of riches that has an unintended consequence. thanks brian. sports gambling and marijuana. a few years ago, both were illegal almost everywhere. now the tide is turning. thean oes the legalization of bo mfor states and the businesses involved? don't move "power lunch" is coming right back

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hello, everybody i'm sue se herera.

a moderate earthquake sent people into the streets in mexico city today. the 5.2 quake was centered south of the capital it triggered alarms and evacuation procedures in office buildings but there were no immediate reports of casualties. residents in the northeast cleaning up after a powerful storm pounded the region with torrential rain and wind leaving at least three people dead and more than 200,000 homes and businesses without power thousands of commuters were stranded at grand central station in new york. the raging debate on the internet is an audio clip. do you hear yanni or do you hear laurel listen a listen >> laurel, laurel, laurel. >> what did you hear even house speaker paul ryan weighing in during his morning briefing >> i will like to tlar something

that is so obvious it is laurel, and not yanni. all right? come on. how many laurel fans here? yeah right okay >> earlier, i had heard yanni. on that one i heard laurel who knows? it is all the rage today >> i was thinking, that's all the country needs to be even more divided we are going the dive deep into this later next hour for check please >> excellent. >> sue, thank you. to contessa brewer in investigation for a update on wynn resorts. >> we heard matt maddox for the first time addressing sports gamb gambling what we heard is him say there will not be a negative impact on las vegas. he said people come here for the party they don't couple here to bet on sports. but he was more measured in his response about massachusetts gambling, where wynn to have a stake. he said we are monitoring it carefully and that's where we

could see the most opportunity as a result the supreme court zig. he also took the opportunity to tell investors the wynn could be called encore boston harbor. the largest shareholder for this company chose not to speak in her meeting. they were prepared to give her extra time but she said she thinks the letters she sent to share holers beforehand speaks for herself. sports gambling is legalized throughout the country it is going to lead to a wave of deals? >> it's not been 48 hours since monday's supreme court decision and we have a couple of deals. churchill downs own the kentucky derby and other casino, race-cinos they did a deal with the golden nug net atlantic city. and then there is reports about patty power bet fare, they are

thinking about merging with fan duel they have given us no comment but remember, comcast, we have a stake in fan duel. the media companies are part of it here's the thin. the licenses are generally going to go to the skoips that have brick and mortar presences but don't have the technology to do on line gambling that's why they are syncing up with the paddy powers or the fan duel because they have the technology and the casinos have the license to do the deal the bankers and the vc guys are going to make a lot of money in the next months. >> i think it was interesting after all these years of fan duel and draftkings saying they have nothing to do with gambling now they are saying we understand the gambling market like anybody else. >> they paid lobbyists to go to all the state legislatures to say we are a game of skill not gambling and then they say we have a mailing list of people that

would love to do this project because they were basically gambling. moving from one sin to another. new york could be sitsing on a pot of gold if it were to legalize marijuana according to the city comptroller the report estimates there are 1.5 monthly marijuana users in the empire state, how does this translate into dollars conservatively he says the state could see $435 million a year in tax revenue and new york city could select $336 million. here to tell bus the potential economic exact is scott stringer good to have you here. >> nice to be on. >> clarify something for me. you work at the city level but if this is going the get done it has to happen at the state level if they are going to legalize pot full scale, right what role do you have here are you advocating this up in albany >> the study we issued speaks to the entire state so as you stayed in your report, if we legalize marijuana, we are

going to realize a $3.1 billion market that could have excellent cash revenues, more taxes that will be paid to the state, and more taxes paid to the city. so this is a new revenue stream. this is going to impact the kind of resources we will have to invest in education, to invest in health care in new york it's not just about legalization as a tax revenue generator. this is also speaks to what is happening in terms of social justice. many people now are aware that in new york city we are arresting more people of color for low level marijuana arrests as opposed to white people it's creating two standards of justice. so in addition to creating an economic revenue stream that can be used for the benefit of our city, it also settles this whole notion that only certain groups of people are getting arrested for low level marijuana crimes.

>> what tax rate would you put on marijuana at this point we have seen in some states where it rises too high and they actually end up pushing the product back into the black market. >> i think we could have a 25% excise tax in new york city just like cigarettes. 10% excise tax in the state. these are things we could put forward to ray this revenue. i think part of the benefit is once you bring marijuana out from -- out of the black market and into the mainstream economy i also thing we are going to have a rare opportunity to regulate it, make it safe, keep it away from children and young people what we are seeing in colorado for example, is drug use went down among teenagers when you legalized marijuana. and also less opioid use for me, yes, it's about the new york city economy. but it is also about how we broke our kids anding are late

the industry. >> let's talk about the social impact and not the social justice impact that is what do you think personally about introducing another intoxican't, legalizing an intoxican't in communities where there are lots of intoxicants now? if people are substituting pot use as you suggest for opiate use i guess that's a better thing because people do not die from overdoses of weed but there is a social cost here, isn't there? >> people have been smoking marijuana for quite some time. people have begun to prison for decades around marijuana obviously, when you regulate, you are also going to have an opportunity to weigh the health risks, perhaps take some of that revenue and invest it in health care and further education let's not be naive marijuana has been around for decades. it's the unground economy, the state and city gets no economic

benefit from it. we don't have an opportunity to regulate it. one of the reasons why we looked at colorado and washington state is because they have had legalization for the last four years. so i was able to drill down on some of the economic data. we also looked at what was happening out there. the bottom line is less teenagers are using marijuana, and the opioid crisis which is so prevalent in new york is going down so we should explore this. we don't have all the answers but we have a lot of work to do on this. >> i was going to ask you about sports gambling. the mayor expressed concern, says he is worried about addiction when it comes to families i'm wondering how that's different from talk about legalizing pot, which as you know could also be addicting. >> part of legalized gambling is something that cities and states are going to have to grapple with the supreme court ruling now puts this into play. i haven't looked at the numbers or looked at the consequences but it's something we are all going to have to understand.

and look, we have to think in a smart way about how government regulates and what the consequences are i can tell from you the marijuana perspective. when you weigh the economic factor as well as the social justice factor, i think it's pretty clear we are headed to legalization i think sports betting comes with a cost, but we are also going to have to do further analysis. >> mr. stringer thank you for joining us scott stringer is theu new york city comptroller. let's get to ayman javers at the white house with some breaking news. >> that's right. we have got the president's new financial disclosure form which has been put out by the office of government ethics the president turned it over to them yesterday one of the highlights here is the fact that the president is now disclosing the loan that he took from michael cohen, his own attorney, who we know from reporting paid stormy daniels the adult film star about $130,000 andn what's been described as a hush money payment. that loan is now being disclosed

on the president's financial dischosure form for the first time today a footnote the resident's team says it wasn't required to be disclosed as reportable lights but in to 16 they say expenses were incurred by one of donald trump's attorneys, michael cohen. michael cohen sought reimburse men of those expenses and mr. trump fully reimbursed cohen in 2017 they say the category of value would be 100 thoupds to $250,000 and the interest rate would be zero the first formal document here declaring that the president paid back that loan from michael cohen which reportings suggest went to pay the porn star stormy daniels. we will wait for more information from the white house but the office of government ethics is saying the president should have disclosed this on the previous year's financial disclosure because the loan was made in 2016. >> but he repaid it in 2017, the loan being presumably the

payment to stormy daniels. in other words -- >> that's right. >> that mr. cohen fronted that money on then candidate trump's behalf, right? >> that's right. though it's not clear exactly where cohen got the money. he suggested maybe he took out a home loan to pay for that we have also seen over the past week new reporting he had large sources of income going into same consulting company that he used to pay stormy daniels and money was coming in from companies such as at&t and novartis and others. where all of that money went ultimately is still a about it of a mystery here. >> a quick question. the president on air force one said he was not really aware of any payment to mr. cohen specifically to compensate stormy daniels. >> right. >> this suggests that a payment was made, but it does not say that the president knew what the payment was for necessarily, does it. >> right it doesn't even say what the payment was for in this new document we are getting today. it just says expenses were

incurred in the passive voice by mr. cohen. so it's not saying specifically what the use of that money was so one of the inconsistencies i the white house's story here has been that the president paid off michael cohen for the stormy daniels payment in 2017 but didn't know anything about stormy daniels until 2018. it's possible that the president simply trusted michael cohen to make any payments that he thought were appropriate and reimbursed him for anything he asked for without really knowing what it was for. >> without asking questions. >> without asking questions. wrote a check without asking any questions. and that would make the white house's time line here add up, he paid him in 2017 but wrote a check, didn't know what it was about and found out in 2018. >> my job is to make things go away for you i made $130,000 worth of things go away, or whatever the payment was, but the president didn't ask, and he didn't tell. >> seems to be where we are. >> friend of mine comes home and

says his kid came home and asked him why does the news keep talking about the president and that weather lady. >> that's cute >> rick. >> if you look at the fixed income market maturities other than the five-year note is unchange five-year note is 1% higher. that's a big story two year continues to rise setting new highs going back to 2008 and we stick. look at the ten-year it's been breakout from a technical perspective. it keeps moving higher it stick our previous high as 309, here we love at 308 boons in the opposite direction because there is talked the new not quite done - yes, you see it correctly, the selling is pushing it all the

way up to a 212. finally, the dollar index. rl resurging hovering at the best level since the end of 2017. >>ha y m tnkour. santelli. "power lunch" will take a short break. we'll be right back. we had long deployments in iraq. i'm really grateful that usaa was able to take care of my family while i was overseas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too. we're the hayles and we're usaa members for life. see how much you could save with usaa by bundling your auto and home insurance. get a quote today.

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ever look at the surge in the amount of people flying worldwide, especially in the last four to five years the most recent data from 2016, more than 3 billion people were flying commercially. and that's creating a pilot shortage because the airlines are adding more flights. in fact, it is estimated that by 2036, worldwide there will be a need for 637,000 new pilots. remember, some of this is also because there is a mandatory retirement age of 65 so we have a current wave of pilots who will be retiring relatively soon. the recruits in pilot training school right now are being offered big bonuses to sign on with a regional airline. >> if i wanted to i could travel across the country, have living -- well payment assistance, have quite a large bone to us start off with right away have my choice of aircraft i want to fly. and have my choice of routes so each airline has different perks to it.

you can pick any of those things depending who you are flying for. >> a lot of pilots didn't want to go into this end something 70 or. $0,000 and making only $20,000 that changed now i think there is optimism and room for growth for pilots to dwayne interest in aviation now professionally. >> we talked with one pilot being recruited by the regional airlines 23-year-old amanda larson. she has three different airlines that are talking with her. by the way, guys, these pilots generally speaking are looking at potential signing bonuses of between $5,000 and $20,000, depending on the carrier don't look now, but the chinese airlines are also aggressively recruiting new pilots. >> one of the guys you interviewed mentioned how it used to be in the old days when there was an abundance of pilots they used to charge them for their training it was expensive to become a pilot --

>> pilot training school and increasingly you are seeing those regional airlines saying how do we off offset the loans that you have taken out to become a pilot >> got it. thanks phil. >> i feel they should get more after some of the pilot hero stories that we get. like tammie jo schults and sully sullenberger. >> if you want more pilots, pay them more. >> money will attract them. >> yep when we come back -- [ no audio ] (baby crying) ♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪ funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it.

check out shares of spot phi right now, they're trading higher and seeing nice gains over the last week this year, billions of songs will be streaming around the world, it's changing the economics of the music business. our next guest just seven years ago, started her own record label. a lot to talk about here on the challenges and opportunities in music. we welcome ashanti >> nice to see you >> you're just back from russia tour something. >> yes >> is that still the way to go to go on the road when it comes to making money in this streaming world? >> absolutely for me you touch your fans, you make some money, you get to see the people

you travel the world, you get inspired, absolutely >> when it comes to streaming, how has it changed the business in terms of where you're spending your time and effort right now. >> with streaming, i feel like you have to put out so much content. you have to continue to put out new records, it's a way faster pace now, you can't wait, there are so many other artists dropping different things, the consumer will get bored. you have to continue to put out content. >> do you remember cd's? >> i remember your cd, jarule. >> how do you listen to music when you're alone? do you listen to cd's, do you stream it? >> play lists, hon effortly. you. >> make your own >> maybe privately >> we just showed spotify stock price. is there one you need to pay

more attention to. >> as an artist, services like title. they may pay a little more apple, pandora, spotify exposes you to millions of people that don't pay the best it's like you have to put all of your eggs in different baskets you want to be the artist on every streaming service, so you can get the most amount of people involved. >> what's the most effective way to market your music in the old days people would call d.j.s that whole world has changed >> you still have to make the calls, but nowadays, i feel like it's about content, visuals, putting a visual to your record. people want to see it, you have to keep putting out more and more music maybe add some controversy to it, but have you to get people involves

>> what is most important for you to own >> you need to own your masters. me being a writer, own your publishing you need to understand what's going on -- >> the intellectual property business >> absolutely. >> that's what you have to understand >> you started your own record label, is that why >> i wanted to own all of it, it's so hard, especially as a woman, it's so worth it, you get to call the shots. i get to make a deal with lifetime, for instance. >> why was it hard >> it's hard, in the music industry it's a male dominated world, sometimes you're not taken so serious. to learn and be young and be taken seriously, it's a lot. it's a lot of pressure, there are so many different things have you to be aware of. budgets and still being creative and still being a lady

it's a lot >> do you think spotify made the right call taking r. kelly's music off the site >> you want to be able to express your art no one wants to inspire negative things, being abusive, that's negative it's the way you go about it i don't know if it's that they're completely taking his catalog out or they're not promoting him. >> i think they're taking him off the service. >> so his songs are still there, but they're not going to be promoting it >> it's a slippery slope >> it is it's really hard are you going to do that to every artist in every genre of music. does that mean we can't show certain things or in movies there shouldn't be violence it's tough you know what i mean, it's tough to sensor artistry >> who are you rooting for tonight, warriors?

>> i'm not sure. >> we know you'll be watching. thank you very much i'll see you at the room to read gala it's a charity that supports female education thanks for coming by >> thank you >> nice to have you. >> jonlszen and johnson was once the brand for baby products. it's recently been losing shared arrivals $2.2 billion the most ever paid for a sports team. now another familiar face to cnbc viewers buying the carolina panthers for the same price, who made the better buy [fbi agent] you're a brave man, mr. stevens.

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good afternoon, everybody, welcome to hour number two of power lunch, here is what is on the menu, the dollar rally as many strategists sound the alarm it could put the global growth story on hold. are they right, and who is more at risk. bleting own the winners and losers in the new gambling regime will this lead to a pot of gold or a street of broken dreams

news of david tepper agreeing to buy the carolina panthers, coming on the same day we learned his firm sold their entire stake in apple. what's the better bet right now, apple or an nfl franchise? power lunch starts right now >> welcome back to power lunch stocks are moving higher into the afternoon here, led by materials and consumer discretionary. right now we're seeing a nice rally, half a percent for the s&p 500. small caps also big winners here, with the russell 2000 hitting all time highs leading the dow, nike, ge, walmart and disney foreman, t. rowe price it's on pace for its best day 12i7bs april 10th. abercrombie and fitch a leader there.

we'll have more on macy's big quarter. >> fox announcing today that lockland murdoch will become the new chief of fox rupert murdoch will become the new chairman >> housing stocks fell in april. mark zuckerberg says he will meet with regulators as soon as next week on the cambridge analytica scandal. however, he has declined an invitation to testify before u.k. officials >> let's go to david faber on cbs. >> another exchange of fire if you will, sarah, in that ongoing battle if not war between cbs and national amusements. a few moments ago, national amusements said they're an 80%

control shareholder. they acted by written consent to change the bylaws of the company so the board of directors can or cannot really do anything with regard to differ dendss that would not require a super majority vote of that same board of directors i'm told super majority means 90%, which means one director opposing to doing anything having to do with issuing dividends would prevent an issuance of dividends many why is that born anyone following this story, which began with the lawsuit from cbs and its directors against controlling shareholder nai, may know that tomorrow, that board expects to meet in order to what they say is allowed under the current charter, issue a dividend that would have an effect of vastly diluting the stake of national amusements from 80% to 17% they can no longer do that, the charter was just changed by written consent by its

controlled shareholder all of this is in court. in fact it's starting right now. the chancellor will be voting on whether to grant a restraining order. something cbs says it was planning to do but they now have no plans to do it's going to go back and forth, we wanted to alert people to another significant move as the battle continues to heat up. if you can even do that given how hot this war is. >> mark, mike, excuse me the markets are they making peace with higher yields >> yes, i think they are >> we get to a new level on yields

the stock market has to change the overall story. i think we're okay with it, the yields have pretty much held steady, they have not made new highs today, i think that's the process we're in, and it reflects the underlying process of people saying, economic fundamentals look pretty good, we can take the consumer strength and things like that, that is offset by what does it mean down the road by rates and inflation. this is the push pull dynamic we're stuck in >> it's encouraging we're up today. the overall markets holding up, that's a big success, because we didn't have a selloff on the second day no big heavy volume move down on the inflation concerns the way i keep trying to explain it to people, in the 2 to 3% range, the stock market has done fine it's not a disaster, you start getting way past that, that's when you start getting -- where things happen. that's when you get value stocks start outperforming stocks

dividend paying stocks underperforming. at this level, the real returns, which is actual returns minus inflation are very high, you get a 20% earnings growth this year, 18% real returns on your earnings that's really high numbers still, and that's why i keep telling people, don't worry that much with inflation in the 2% range. >> all right >> i understand why the market is panicking in advance, we've had this great run with the markets outperforming the economy. people wonder if it's time for pay back >> you see generally the markets do fine. it's when you get way above that, that's when you start having problems. >> seems like an adjustment period we're in right now. >> thank you very much let's hit those themes further. the dollar intech hitting a high today. it's a big rise this year has some strategists worried it could derail this global growth story we've been talking about

we've already seen the markets get slammed. how worried should investors be? let's bring in amanda gotti with pnc financial services group also with us, steve liesman. senior of economics reporter >> strong dollar we're not as strong as we were over the past few years. are interest rates going up for the right reasons? i've been surprised. american interest rates have been higher than europe for quite some time. always interesting as to why that was not reflected in the differential now you see european rates going up u.s. rates going up a little more than that i don't see it as a problem. i think if it reflects stronger growth, as well as where the different central banks are right now, i think everybody keeps saying, well, you're going

to have all these countries, they're going to be timing at the same time. i think they have the timing off. >> the u.s. is going to be done before the timing starts >> do you have to change your investment strategy given what's been going on? >> stay out of the big multinational companies? >> we are seeing domestic stocks hit record highs >> no, we're not necessarily changing our strategy, clearly there are some winners and losers in a strong dollar scenario em is top of mind for us, in terms of being more cautious, being impacted by a strengthening dollar, it's not changing our tune in terms of positioning. but it is something that we're watching, and so over the near term, we do think it is a bit of a head wind. it's not the only factor that makes us a bill more concerned about em we are concerned about china slowing in general trade and protectionist policies more broadly speaking. the impact on dollar denominated

debt and the indications for stresses on the credit markets. there's a number of factors there, why we're a little more cautious on em the strong dollar. >> play that out in practical terms for us how does that translate into the percentage of a typical portfolio you may develop to emerging markets, and why does the strong dollar, and a weak arounden teenian lera or whatever, hurt those markets >> to reinforce the point, i think the key is really the extensive amount of dollar denominated debt in em it really challenges the ability for em countries to be able to finance this debt. we are starting to see the impacts of that in the credit markets. so to the sken extent that it is more sustained in nature, instead of a shorter term blip that's going to cause more concern for us we are not necessarily underweight em we're just -- in terms of putting new capital to work today, we may be pausing a bit

>> i think it was isaac newton who said, when the dollar and interest rates go up, em goes down >> i mean, it's so -- almost -- >> a well known global investor. >> big question we ask is, when we start to see, the cracks appearing in turkey and argentina, does something systemic happen? we all think back to the asian currency crisis? >> i won $100 from every complaining em investor for every year that i can find since the feds started wrarning emerging markets it was going higher and you ought to prepare your house for the inevitability of it >> they never listen. >> i know yellin has made speeches about this, powell has made speeches. >> powell just spoke about it. >> we're doing this, wake up >> it's our policy it shouldn't impact you. >> i wonder if there's a bit of

a paradigm shift we're so sensitive, investors are sensitive to the dollar amount in part because there wasn't a lot of growth here in the states if there's more growth in the united states, if you have this big corporate tax cut coming through, does the dollar matter as much for u.s. corporate profits as it did in the past. or is it being replaced by domestic u.s. growth >> thank you lady and gentlemen. the magic of macys may be back, and it's paying off for investors, the stock is souring today, following a strong earnings beat, and improving sales numbers, macy's isn't alone. retail in general having a good day. so goes macys, so goes some of the other stocks it would seem >> robert, welcome this was a pretty good report from macys, you point out one reason it is as good looking as it is, they brought a friends and family sale into the first quarter. something that had been in the

second quarter before. how good is it really? >> good afternoon, even without the addition of that friends and family event they still comped well above where the street largely was i think if you back out the friends and family, it was 1.7%. it's a strong result as you think about the expectations for macys going into this quarter. >> what are they doing right how are they driving it? >> their inventory levels are lean, their merchandising strategies have been cleaned up. they have this backstage approach, they're bringing i more merchandise carving out part of the store. and their marketing has gotten cleaner. there's a lot of different initiatives, it's starting to gain traction. we saw positive results out of them in the holiday season this is a continuation of what we saw in the third quarter. >> stock is already up this year you have a $32 price target.

are you raising it >> yeah. this afternoon we raised it from they blew through our 32 we took our estimates up this year and next year i think with a little better top line one could argue for a higher multiple on this stock >> does this ripple through the rest of the retail space, nordstrom, kohl's and others >> i think it does >> macys made the point that weather didn't impact their business that's been a concern of many people the other point launched emerging market commentary you just had they said tourism sales are up 10%. you're starting to see a couple factors that are a nice positive for the u.s. landscape thanks for your time today appreciate it. >> johnson and johnson acknowledging it dropped the ball on baby care products

now the company is trying to do something about it what is the better bet apple or the carolina panthers stay tuned for that deteba mom you called?

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remember donald trump still owns his companies, but they're in a trust. so we get this financial disclosure every year that tells us how a lot of those things did there. there are hundreds of llc's, s corpses. i want to go to mar-a-lago there's lots of concern or interest in groups that are holding fund-raisers there this year he reported revenue of 25 million from mar-a-lago that's down from last year's filing of 37 million pretty significant bump down there for mar-a-lago revenue he made that up at the d.c. hotel. the d.c. old post office hotel there, a lot of fund-raisers and political events being held there. that revenue had more than doubled over the past year from 20 million to 40 million that's going to be the headline we're going to see a lot tonight and tomorrow when people look at how much that is it justified some other interesting points here he had some stock sales, among

the top was apple. he sold and had a capitol gain of apple between 100,000 and a million. caterpillar and pepsi sold for a smaller amount some of the businesses that had strong revenue at least, we don't know how they compared to last year, that was a $75 million revenue number for him pretty big gain off the last year, and you have turnberry hotels, the trump national, all those courses around 15 to 17 million. those were roughly in keeping with last year, i suspect the big headlines from this again will be that decrease at mar-a-lago due again to a lot of the optics and politics where the not for profits didn't want to have events there but that gain at the d.c. hotel, where the revenue more than doubled. >> apparently he's also making royalties from his cameo in the fresh prince of bel air from the

early '90s >> yeah, there's a lot there some book royalties. the number of entities that donald trump has and gets income from is page upon page this will be headlines for days upon days. >> have you been in the lobby of his hotel in d.c.? >> i have, it's extraordinary. >> once he won the presidency, that bar filled up. >> i know a lot of people at mar-a-lago who are members it seems to be reenergized since he became president. i am surprised at the decline there. maybe it's these big events. you lose five or six charity events and that makes the difference. >> i was surprised at the $10 million drop at mar-a-lago >> thank you when we come back, johnson and johnson says the company has failed to keep up with millennial moms 37 what they've announced they're doing to change that next as a control enthusiast,

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well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him?

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welcome back to power lunch. when it comes to baby care products parents often look for natural ingredients. johnson and johnson not typically at the top of the list they're looking to change that with more on how they're courting the most important group out there. millennial moms. >> that's right, sarah we're here at j & j's analyst day where they're focusing on their consumer products unit it's a $13 billion business. one of the most iconic brands is johnson's baby it's getting a revamp, take a look. >> when meg conrad shops for products for her 3-month-old daughter she always checks the lane. >> i try to avoid products that have parabens, sulfates and

unnatural fragrances >> perhaps because of our success, we became a bit complacent and did not want to mess with success. >> and so frankly we failed to see evolving needs from millennial consumers, millennial moms >> j & j is revamping the century old brand. >> what we've learned is that they were looking for fewer, simpler ingredients in their products from that we knew that we had to completely make a change to our brands >> the new johnson's baby line hit shelves in august. it contains half as many ingredients, remove s dyes and sulfates the eboot should improve profi margins because of simplification of its supply change >> we're convinced this will get johnson's baby back to growth.

>> it's got a bump top to make it easier to use the product. they're changing things to make it easier to recycle it will be interesting to watch whether this brings millennial parents back to the j & j brand. >> does it still smell the same? >> that's what everyone likes about it it has that soft baby smell. and also, how does it foam if they don't have sulfates in it >> so on the smell question, it smells really good we got to smell them side by side they smell similar, if you weren't smelling them side by side, you would think they were the same this one smells a little less chemmic ali, at least to me. the foaming is a trade secret j & j would not tell me. they say they can make it foamy.

>> still foamy >> it's important that it foams. >> there's not a lot of hair there to wash. >> the honest company has come in strong in this market part of it is, they branded themselves as clean products for your baby. and if it's clean -- >> do you look at labels >> oh, yeah. >> all the time. >> on everything laundry, stain remover, everything >> so does my wife i didn't know she was such a label hunter, but she is >> everyone's aware of parabens and phalatis >> i still love the smell of dreft. >> really? >> i love it >> we have a lot of dreft at home >> where are the opportunities, we'll take a look. what is the better bet apple or the carolina panthers that and more.

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hello, everyone, i'm sue herera, here's your cnbc news update at this hour. the office in a southern california medical building was the target of an explosive package that killed one and injured three. it happened tuesday afternoon, and officials say the four were likely in close proximity to the explosion. tom pruitt facing tough questions over travel spending, security detail and large raises for his aides. >> i share your concerns about some of these decisions. i want to rectify those going-forward. i want to highlight for you that some of the criticism is unfounded. and i think exaggerated and it feeds this decision we've seen around important issues affecting the environment. >> two astronauts conducting the

first of two space walks >> they got quite a view too that is the news update this hour michelle, back over to you >> golfers playing a round while somewhere in the distance, giant ash plumes rise from an active volcano. for more, we good to miguel almaguer >> with kilaueua threatening to blow its top, plumes of ash and smoke are rising some 12,000 feet into the air. miles away, communities are bracing for ash fall as well as toxic air created by the volcano that can be dangerous to your health in the meantime, those new fissures continue to break out every day. more than 20 some of them spewing lava and toxic gas into communities where 2,000 people are under

mandatory evacuations. today dozens of homes are destroyed. that number could rise as this community waits for a catastrophic steam explosion from the crater itself back to you. >> now that the supreme court has struck down a federal ban on sports betting, the result could be lucrative let's find out where our next guests are placing their bets. post seed funding in gaming start-ups, an early investor in fan dual and zinga paul, let me begin with you, fast -- fan dual has always styled itself as a game of skill. is it now a game of chance >> fan dual has always operated under the act which said fantasy was an entry into a contest. a very different regulatory framework.

fan dual could operate under both frameworks. >> it's a breath mint and candy mint i guess that's a fair analogy. >> is this going to be a big business built on the backs of highrollers? or a big business built on the backs of small stake gamblers who are betting five and $10 per event. >> the large betters already have options it's getting the casual fan on zinga to this day runs the world's largest poker room by combining the platform of facebook as opposed to being a sharp better >> when we saw physical gambling

expand, everyone thought it was going to bring in a ton of money, there's almost no barrier to entry >> there's no doubt, we're going to see a massive proliferation of different kinds of games. right now, let's say you're a casual sports fan. what does bet five 10 on tom brady mean is that a fantasy option or sports betting option. >> what if he scores a touchdown and you get $5 7 touchdowns you get a million dollars like a jackpot about you get at the confluence of sports betting on one side. and a fantasy proposition on the other. that's where opportunities are going to be coming from the silicon valley >> if you can find a way to bet on opera --. michelle will be a player. >> the fantasy >> how quickly i fall asleep, that will be the bet i make. >> are there any market opportunities? >> yeah, there are it's great to be here. the knock on disney for the last few years has been espnp i have

to tell you something. i think disney wins this all the media companies win but disney specifically. people who may historically will not watch. if they have a couple dollars on the line, they absolutely can watch. this could be huge. >> hey, i can well imagine television operators 1e9ing up their own channels devoted to the gambling game. >> no question about it. >> gambling on sports. >> it's a 3-2 count against pool halls. can you bet on that? if you can people will be locked into these games where historically -- >> you don't understand, tyler is building a new tv network in his head >> are you trying out for -- it sounds like -- >> i would be in tyler and i on a sports show >> ty and guy. that's fantastic >> very good >> how else do you see the

merging of the fantasy world and the gaming world and who has the leg up as michelle said, everyone can get in on it, so many companies have a head start. >> who else has worked for the last 3 1/2 years to figure out how to deal with the 50 state regulatory regime. we had to go through that after dan schneiderman made his attack on the company in new york if you start lookingat things like the confluence of sweepstakes combined with lottery, combined with trivia. you can imagine you do a trivia contest. you win an entry into a sports bet, that enables you to take a player in a pool now you're sucked in just like you talked about, you're in the game for the whole rest of the game it's two terrible teams you would otherwise not pay attention to you have a bet on a player

>> you're arguing that providing a better experience is the thing that's going to differentiate different products >> and what if amazon gets into this game? >> and the other thing is, who figures this out >> absolutely. >> this is the way it's going to go >> what about amazon could amazon ever get into this? >> i mean, amazon 50 states, they do everything on line, why wouldn't they do this? >> i think they have the wrong dna for this >> the big companies, the going i8s, the amazons, they're going to attract the new users the dna for a company that's going to figure out how to be at the confluence of sports betting and entertainment, is probably not going to come from a place like amazon. >> one more quickly. does this make twitter more valuable >> i've heard of it, yeah. >> are you there some nights >> you're there. >> twitter becomes more valuable and i agree, this benefits a lot of people. i'm not saying you should be out

there betting every pitch on a major league game. but with that said a lot of people i know, can't watch sports unless they have some action on it. now this incentivizes them to do exactly that >> i agree with that >> i always wonder why men get so emotional sometimes in my life about sports it's not like they have ownership stake in the team. >> you think they're emotional now, just wait until they're losing money >> so bad when their teams lose. it's awful >> paul, you're excused. thank you. you are staying. okay >> you stay after class. you can wait for a minute, you don't have to leave just yet >> appreciate it >> speaking of games >> we have a little game that we're calling, what's the better bet. that's a new version of would you rather apple or the carolina panthers who would you put your money on. >> guys, stick around.

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it is official apple management reaching a deal to buy the cavaliers he exited the entire stake in apple. let's dig deeper, in a game we're calling what's the better bet. guy adami still with us. >> you like to play, would you rather >> what's the better bet over the next 10 years would you rather own if you had the cash, apple or the panthers. >> the panthers. >> tim may argue with me, i would rather own the panthers, the reason is, they're always

going to be wealthy people who want to make vanity purchases, there's no better vanity purchase than a sports team. we'll talk about the nba later, if you're asking me would you rather the carolina panthers. >> the value of these franchises >> the value of these franchises will continue to go higher but i'll tell you, it's a finite number of these teams, there are a lot of wealthy guys and gals out is there that would want nothing more than to own one of these. >> boys want to own teams and when they get rich, they think, i can buy a team >> i have to agree with my friend guy >> if you think about david tepper, he bought apple at the right time, whether he's doing that to make this investment solely bottom line is, nfl franchises trade at an exclusivity

multiple they're trading roughly six times revenues that's not terrible. it's 8 times revenues. you think about where luxury goods are trading right now. this is the point guy was making ferrari trades at 45 times, it's not an auto company, it trades at an exclusive value. there's always demand outstripping supply. i agree, you stay with the panthers good-bye mr. tepper opinion. >> neither of you is worried about the fact that -- i mean, you just made the point that -- >> all i do is worry >> i know. >> you made the point earlier, that sports leagues and franchises, because of betting may become more valuable mark cuban took that point the other day, how about more valuable, who knows? >> are either of you worried about the little cracks that appeared in the nfl's ratings over recent years? number one, the controversies surrounding the league, number two.

and the potential threat that comes from chronic brain injury. and whether that could be something that really hurts this business >> go ahead, tim, tackle that one. >> i think the nfl has some major issues i don't think that takes away from the fact that this is a game the nfl is invested in. look at the bottom line of the nfl franchises too they've doubled in the last four years if you want to look at kbartives with the bills and the cleveland browns purchases so i think the nfl is going to figure this out. on a relative value. i think the nfl may be suffering at the risk of other major sports leagues >> i'm more interested -- i'm more interested, actually, before we move on, in tepper's decision to sell his stake in apple. a stock that's run at 14% this

month. doubling down from warren buffett. >> gives him an opportunity, though, in his world if i were tepper, i would say, this is a great way to exit apple, at the top, get into something where i don't have to explain myself i'll push back with apple real quick. i understand there are services revenue that continues to grow 15% of revenue right now big deal at a certain point it's a consumer products business that makes people want to buy if i could cash out of my apple and buy an nfl team, i would absolutely do that >> which franchise in sports would you rather own both david tepper paid 2.2 billion for their teams. who 10 years or longer will have made the better buy, tim >> well, i think it's tillman, and i think it's because the trajectory that the nba is on, and it's because of the

international element of this league, think of the value of china, what's going on with the ability of this sport to monday ties around the world, they're already doing it they've closed the gap on the -- again, the relative valuation between the nfl and nba teams, by about 50% in the last 5 years as well. i think nba far and away, it's a simpler model. one player can change the fortunes of a franchise, and that means a lot about. >> they have the best commissioner in sports >> i was going to say the same thing. >> that's 100% that's a huge deal, tim's right. the ufl is a centric sport the nba is a global sport. if i have an opportunity to own an nba franchise, i'm absolutely owning an nba franchise. 100%, for all the reasons we cited that's wrong with the nfl, it's everything right with the nba. i think tillman's in this big time

>> the nfl has gotten so slow. >> come on >> don't even go there when was the last nba game the people that are watching >> she's right >> she's right >> that's not the point. >> my husband complains about it >> he's right, you're right. >> we're all right >> i think tim's point on international is so key. when i went with underarmor to taiwan, they all were dying to meet steph curry nobody knows who tom brady is. he's trying to sell the underarmor sleep wear and underwear element, but the international apair. >> how about stephan marbury he was the most popular player in china, the sneakers, all the deals around this the nba is big business in china. and look, even look at us long suffering knicks fans, the knicks have been awful for a long time. we hang in there, this franchise

is the most valuable franchise in basketball. that tells you what's going on in the nba >> while you're here, we want to check into the 2018 stock draft. here are the -- >> it's a terrible segue >> stevens technology with their picks. you all dumped on them for not picking bit coin, so far they're doing pretty good. you are close on their heels thanks to chesapeake, and we have nick lowry and bethenny frankel and the beardstown ladies do you think you could take the top spot >> fierce competition, what can i tell you this is a long season. i know better than anybody i was winning this thing for most of the year last year, it would have been great to trade out of those positions, we cannot i tell you what, smart bunch of kids, it's great having that kind of involvement in our draft. >> as long as o'leary loses, i know he's watching right now as long as owe loses, i'm happy. >> i mean, as long as o'leary goes down in flames. that's a successful draft.

you. >> made that clear on draft night. i'll tell you what >> just saying >> tim -- >> tim, you are excused. >> guy, you are still sticking around >> good. >> until the top of the hour >> shares of walmart higher for the fourth straight session. the retail's of those numbers? we will tell you nex t.

time for trading nation. let's talk walmart megaretailer showing off some gains here before reporting earnings tomorrow morning. is there still value boris sla boris, is this a buying opportunity? already seeing good retail earnings today >> rightly so because it's going to be a company that's going to bleed money for the next couple of years going to be very diluted after earnings the bulls are arguing this is a huge bet on the future essentially like when google bought youtube for way too much money. that india's their emerging

market growth. and trying to make this strategy of clicks and bricks an immersive shopping experience and the stock has gotten punished at this point for the acquisition. i think simply the goods old bricks is going to bring them back retail sales are starting to pick up. i think just the fact that we're seeing better retailers all across the board is going to help then at this point it's probably an interesting buy if you're a long-term believer in that strategy, certainly a buy at this point. >> frank, do you agree >> i think walmart's at a critical spot. first let's see how bad actually it has been. this right here is a 20% decline in the last four months. it's been so bad, it's rare it's occurred over the last ten years. here in 2005 here again in 2009 the positive is that this led to bounces every time here we see it again again here. and also walmart is now getting close to a very interesting support line it's able to balance there over the last week or so.

and we're also near an uptrending support line near the 2015 low we like to have two areas of support together when we can opposed to one so i think all those factors together could help walmart bounce use good numbers tomorrow. >> so it's good, i guess you could say. frank, thank you and boris, nice to see you as well for more market insights head to tradingnation.cnbc.com or follow us on twitter. so is it janny or laurel it's the internet clip dividing families and colleagues. we are going to get to the bottom of it in check please next and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> limit orders are usually a good idea, but they're especially important in volatile markets. using limit orders will ensure you don't pay too much for the stocks you buy or get too little for the ones you sell. markets tend to gap up and down at the open more frequently

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check please >> you must listen the audio clip that is tearing the internet apart it's a robotic voice says a word and people are hearing two different things is itti ya in rks ny or laurel? let's put it to the test >> laurel. laurel

>> all right tyler? what did you hear? >> i heard the word colorado >> that's not an option. >> okay. we have a cool graphic here that i'm supposed to side you -- >> i heard laurel. >> okay. laurel >> i heard laurel as well. >> you heard laurel. >> guy >> craziest thing, i heard "power lunch" rocks. no when it first played, i heard yanny. and then i heard y-laurel. >> can i tell you why? >> maybe i'm a genius. >> i think it's the medium some people hear it on their phones and some people hear it on their tv. that's my theory >> what did you hear >> the first one i heard yanny i'm going laurel >> you know what's weird the first time i heard 100% yanny. and now i heard laurel really weird >> craziest thing. >> it's the aliens it's the mayans coming through i'm telling you, sign of the apocalypse >> if only companies could be this smart when it comes to

their marketing tools. it's a viral sensation. >> when was the dress thing? >> 2015. >> wow okay >> what color was the dress? >> all right, everybody. >> blue and gold >> on that note, it was laurel laurel is the winner whatever you heard is fine with us thanks for watching "power lunch. >> "closing bell" starts right now. welcome to "the closing bell." i'm wilfred frost. rates and the dollar in focus yet again for investors. a new topic surfaces retail as macy's posts strong results and surges in response >> bob pisani here at the new york stock exchange where inflation is starting to become more of a focal point and a cause of concern for investors >> i'm phil lebeau in phoenix, arizona. the airlines are facing a global pilot shortage to fill that void, they are offering some major perks and benefits and the sky's the limit. >> i'm morgan brennan reporting on a new worry for the economic machine. a massive shortage o