>> celgene looks like a ridiculously c stock >> intuitive surgical. >> rob, thank you a lot for joining us that does it for us here for "halftime," "power lunch" starts right now. >> i am michelle caruso-cabrera, president trump is talking and tweeting like crazy today. turning up the heat on trade and taking a victory lap on the travel ban and hitting iran on oil experts. we are reading all the latest from washington straight ahead shares of general electric surging right now. companies selling. this is the end of the over haul, can it jump start the industrial revival company the fda improving the first ever marianne based drug. the ceo is going to tell us what the historic decision means for

the bottom line, "power lunch" starts right now >> welcome to "power lunch," i am sara eisen, stocks are carving out some nice gains on the first day of the new look dow jones. the dow is still lower for the month of june. although the s&p and nasdaq are both higher for the month. walgreen's replacing ge and the dow today. walgreens is one of the big drags in the group g.e. is the big percentage gainer if it is still in dow oil is soaring at this hour. that's fuelling the energy name. it is the best selling sector right now. >> i am tyler mathisen, welcome everybody to "power lunch. a lot of headlines and actions coming out of d.c. president trump getting tough on trade weighing in on the supreme court's travel ban and ruling and also turning up the pressure on iran. we got our reporters covering all of it from every angle and

kayla tausche is tracking the issues let's begin with eamon javers at the white house. >> reporter: yes, the president is upholding the president's travel ban this is the third iteration of the travel ban the trump administration argued that therefore this was not focused on muslims as a religion but in fact focused on the issue of danger in terms of security threat to the united states, the supreme court believed that argument jo john roberts, the chief justice writing the opinion today. the president called this a great victory for the nation this morning we'll see the tape here momentarily. the president just wrapped and asking for more funding for r the border wall. we'll see some q&a there with reporters in the room. >> eamon, we are going to go to

the play back tape which you just referenced now as it is available. >> at the top of your game, the fact that today's supreme court ruling just coming out a tremendous succe and a tremendous victory for the american people and for our constitution verses a great victory for our constitution we have to be tough and we have to be safe and we have to be secured and a minimum we have to make sure that we vet people coming into the country and we know who's coming in we know where they are coming from we just have to know who's coming here. the rulings show all the attacks from the media and the democrats and politicians are wrong and they turned out to be very wrong. what we are looking for as republicans, i can tell you strong voters and no crime what the democrats are looking at is open border which will bring tremendous crime it will bring ms-13 and a lot of

others that we don't want to have in our country. it will bring tremendously i will always be defending the sovereignty and the safety and the security of the american people that's who ilways put here, we are discussing of the funding of the wall which we very much need we started the wall and we are spending a lot of energy and a lot of time and started up in san diego and other places it is under construction now, we have $1.6 billion but we'll ask for an increase in wall spending so we can finish it quicker it stops the drugs and the people that we don't want to have and it gives us security and safety with that, if you -- i think we may take a quick spin around of the room and talk to a couple of the folks and maybe -- >> we'll pull out of that tape while the other members of congress who are in the room

talking. let's bring back eamon javers. >> reporter: the supreme court vitam vitam vindicated his decision. our position was right this was a decision that came down to presidential authority, the supreme court writing in this opinion they released this morning from chief justice john roberts that ultimately whether or not this was a muslim ban the president's intent, you got to look at the letter of the executive order as it was written and whether or not that violates the establishments clause and not very much focused on the president's previous tweets they say that you have to look at the merits of this particular case and judge it on the merits of the particular case a big win for the president he's feeling today. >> he was talking about the wall and said he wanted to address that with the senators in the

room does this buy him more political capital on that front? >> well, it buys him political capital in the president's debate, right? the president is fighting a mul multi-front war here childrenbeing separated from their families and the president suffered a significant reversal on that and had to back down last week. this brings more fuel to his argument that there is a national security threat from people who are coming from certain countries overseas into the united states. that'll bully his position up on capitol hill the question in terms of congress, this is ahm mid determine election year, is there time enough for them to do anything republicans on the capitol hill really want to cut large checks. there is a bunch of appropriators in the room today. he's speaking directly to that audience when he's talking about funding the border wall. >> you see this decision strengthening his hands with

respect to dealing with the families that have been detained and some cases separated at the southern border of the united states >> there is no question, tyler that is much better week for the president than last week was he w he's looking to maximize the political advantage right now and i am sure you will see him talking about it again and the hours and days to come when you are winning, you want to keep winning and that's what the president is doing right now >> in the middle of the tape cayla tausche, there 18 members there who are talking. we'll assume we'll hear from him again and we'll hear a lot more about potentially trade. >> yes, we are expecting that. the audience he has with him from the pool note, he did say tariffs can be a positive thing. that's something he said at a rally in south carolina. he's only doing it because he needs to get our trading partners back to the negotiating table and to change the status

quo. so that's certainly what the president believes will be the succe successful he had trouble convincing republicans and both chambers that's in fact true. >> he's been tweeting non-stop of harley davidson this is such an american company talking about building motorcycles in europe. >> in the politically sensitive state in wisconsin which he won and president obama won, how much pain can republicans handle kayla when it comes to corporate decisions like moving production and jobs out of the united states >> well, it depends what the critical mass is, sara is it hundreds or thousands of j jobs or the entire plant the harley davidson is based in milwaukee which is held by democratic representative in the house. already today we had the republican, senior senator of wisconsin slamming the president's reaction to that and

really being critical of the tariffs strategy that caused harley to make this announcement yesterday in the first place so there is a lot of teeth ng and a lot happening in the republican party about whether harley is the first shoe to drop or whether this is one stand alone example. >> kayla, we'll wait on words from the president thank you. gary lock is joining us. welcome back to "power lunch," ambassador >> my pleasure >> i think you will see more companies doing that and it may not be on a massive scale but certain product lines or certain products they may sell i think you will see many more u.s. companies doing that because many countries all around the world are imposing tariffs on american made

products and services. you know just the president was in canada a few weeks ago and bi all the members of g-7 there and the prime minister of canada when america has a trade surplus with canada. we are going after strong allies that we depend on and need in terms of military support in the middle east or trying to present a common front against north korea. so when we start imposing tariffs, other country will retaliate and up the anti. in the trade war, the losers are consumers, workers and companies on both sides. there are no winners in a trade war. >> harley davidson should never be built in another country says the president. i am sure there is a fair number of people who would agree with that he says the aura will be gone and they'll be taxed like never

before if they want to bring those foreign builts into the united states. two questions, does the president have the power to tax them that way and number two, does he have the political capital if he does not have the unilateral power to do it, does he have the political power to push that kind of tax through congress >> tax laws are made by the congress and passed by the congress it is not something that any executive democrat or republican or president can impose you k w unilaterally >> what harley davidson is doing is manufacturing their stuff they're selling overseas >> and not bringing back >> they're selling the locals. >> right they'll sell locally of the stuff they make here >> is that comment with a snarl without a bike because they won't bring back the machine they make in thailand or india

or southern europe or whatever >> so many u.s. companies are manufacturing overseas to serve their overseas customers it saves the transportation costs and just like we in america insist of so much of what we buy here or eat or consume or use in america must be made in america other countries are doing the same thing >> could you believe mr. ambassador, if you are going to manufacturing europe, you will have 35 hours workweek and a lot of productivity and labor there. there are so many reasons why they would not do it >> um, those are all factors that they are going to have to consider american workers are so much more productive and closer to their design and research teams and a lot of benefits to manufacturing close and having all your operations in one place and one country. that's a calculus if they're going to have to make depending on the level of tariffs that they face. >> i want to ask you about

china, ambassador locke and your expertise of the government there. clearly they're starting to feel the pain and as you said nobody wins in a trade war. president trump knows that and president xi knows that as well. who do you think will blink first? >> you won't have either side e is so much national pride at stakes. china made it clear that they'll not want to be pushed around we'll see these tariffs going into place and we'll see what k chinese do by way of retaliation. whether trump impose addition na l $200 billion on tariffs goo ds the chinese says they'll retaliate and if that happens, the president will impose $200 billion of tariffs on $200 billion of chinese goods.

a that's all of the stuff from china coming into the united states which would be shoes and athletic gears and fisophisticae machinery that's sold around the world. that'll raise the price of goods and consumers that household will have to pay raise the price of goods that u.s. companies use they'll have lower profits or raise their prices which then makes them less competitive all around the world >> let me turn to the question of chinese investment in sensitive industry in the united states and elsewhere around the world. you make the argument that we knead to do something there because there is not the level plain field of reciprocity about letting us invest in to their markets easily you make the point or the case to do it alone is far less effective or to do that alongside allies the european union, canada and

mexico our relationship with canada and mexico and european union are not good is that a non starter? >> no, i don't think it is a non-starter. our relation are frosty with our closest allies with canada and the e.u. and i think that for instance if amazon or microsoft want to go into cloud computing in china. they have to have a chinese partner and that means sharing their technology with that chinese partner. all alaba alibaba, does not have to have a giant here in the united states. all countries in the west with similar concerns ought to have united front and impose similar restrictions on chinese investment in our country the same way they do imposing

restrictions >> how much do the chinese cheat and steal? >> well, the problem is that when you have a close sector of the economy and then the chinese will say if you want to invest, you have to have a chinese partner. the partnership has to be left than 50% america will have 49% stake. you have to deal with the chinese partner. you have to share technology and trade secrets and things like that that's where the concern is because sometimes those partners a few years from now when the agreement ends, they'll start using the technology and know how that they gained working with the american and western company to go off on their own to become a huge competitor to the u.s. and western company that's what we need to focus on. >> two things, again, we should all be on the same page with our allies to a large degree, our allies are already in the position when it comes to the situation with the chinese.

we already heard the french months and months ago talking about restrictions on chinese investment into france there were different teals in europe that got held up because the europeans are just as concerned and some way far more protectionist as we have ever been is there a position and everybody can talk negatively on president trump's allies but a lot of people are there already, are they >> chinese companies trying to purchase and buy out foreign companies and all countries including the united states have secured national security reviews. many of those deals were struck down on national security concerns the point is that many sectors are opened to chinese investments where they can set up shops and not buying a foreign company or a french company or u.s. company but actually operating and opening

up businesses in those foreign countries including the united states without restrictions where as it is much more difficult for foreign companies to let's say do cloud computing inna or getting into telecommunication or financial services, there should be reciprocity, we should start limiting the ability of chinese companies to operate in the united states. >> that's everyone n if they ar connected or state supported enterprises that you would focus on in particular >> i would focus on all companies and not only the private companies and not just the government owned companies because the restriction on american companies and foreign company on china had nothing to do with whether or not a private company. >> the dow was off nearly 400

points when this precise decision you are talking wait a minute, it is not what we are thinking about at this point. you think it is a good idea. >> i think we need a united front and we can't do it alone we need to work with all of our allies and make sure that certain sectors of our economy are perhaps restricted if the km chinese are going to have similar restrictions on foreign companies doing business in china. what the administration as are talking about is jioint venture and expanding the scope of national security review, that's a total different matter of what i am talking about gary locke, thank you for joining us >> let's get a check on the markets. all three embassies are at a session highs right now. the dow jones are higher and s&p 500 is higher than 15 points and nasdaq once again standing out higher by more than three

quarters of a percent. apple and amazon and netflix are all moving higher. it is higher by 5% some of the top performers, visa, cisco and microsoft and chevron, they're on all positive territories. crude is crossing $70 a barrel after the state department ordered crude buyers to cut their imports to zero. news alert in the bond market right now. two-yr note up for auction what is the demand like? >> the demand is average i will give the auction a soft c. 2.5 2.538 was the dduecsht yield. >> just a bit light and 15.4 on

direct that was a good one. that's when january beats the 15% ten option average the market did not seem to budge when the results came out. >> rick, let's get back to president trump at his meeting with lawmakers at the white house. >> i will be real short. we need border security. we got to get going. a lot of bad things are happening and i think we are doing an incredibly well we have the worse immigration loss in the history of the world. other countries look at us and they say how is that possible? somebody takes our land and we take them to a judge, they want to choose 5,000 judges how do you choose 5,000 judges can you imagine the corruption from a normal standpoint just common sense, can you imagine the corruption go to the barber shop and grab

somebody and make them al judge. they won 5,000 judges more it is crazy. other countries is called, i am sorry, you can't come in, you have to leave. this one we have judges and if they step in our land, we have judges it is insane we'll have to change our whole immigration policy i was saying last night in south carolina when i came in, i inherited something. we inherited north korea, that's going very well and horrible trade deals, that's going really well nobody is knowing what really is happening. these countries have been really, they can't and i don't blame them, i blame our people they have been ripping us for years and they want to negotiate so badly, you have no idea we inherited a lot of different things but of all of them, immigration makes the least

sense. we have to chait it is so simple. you don't have to see a judge where the judge taking three years before you can come back in the meantime, you can never come back because you are already in the country and that would be bad and it is really bad when it is a criminal. we have plenty of them coming into the country this one and they use the children and use these young children for their own benefits so we have to change the whole immigration picture. we'll be able to do it and we need border wall and border security and we need modern equipment and we'll get it done. i have no doubt. anybody else would like to say something? are we okay? >> we'll let these guys go out and have lunch >> on trade, there are some people who are saying your tariffs threaten to plunge in

the economy into a recession harley davidson announced they'll move their plant >> they're using that as an excuse and i don't like that i have been very good to harley-davidson. the people that's riding harleys are not happy with harley-davidson but i would not be either. mostly companies are coming back to our country i was the one explaining to harley about 100% tax in india where they had a tariffs of 100% i got it down to a much lower number it is 50% which is far too much. they were paying 100% tariffs. now prime minister mody brought it way down but it is still too high i will say this, other countries are negotiating and without tariffs you can never do that. if they don't want to negotiate, we'll do the tariffs just remember we are the bank

that everybody wants to steal from and plunder and can't be that way anymore we lost $500 billion last year with china we lost $151 billion with the european union it is hard to send cars in we have countries as an example in india, they charge up as much as 100% tariffs. we want the tariffs removed. what i would le to do and offered at the g-7, you remember, i said let's drop all tariff and all barriers. is everybody okay with that? nobody said yes so wait a minute, folks, you are complaining no tariffs and no barriers, you are on your own. let's do it. it was like they could not leave the room fast enough >> it is a risky business here and you can tip the economy in to recession

>> we are so high up and we picked up -- if you look at the kind of number we picked up, it is up 40%, the market and the real market is the overall the overall is not much more than that. we picked up about $8 trillion in value doing what we are doing. now, we got a little bit of uncertainty because of trades. to other people that happened to be smart and no uncertainty. we can't allow the european union to take out $151 billion out of the united states we can't allow mexico to have a nafta deal that gives them over $100 billion and i call it profit you can divide that up any way you want to do i i call it profit we can't allow mexico to take $100 billion we can't give china 375 to 500

it is 375, some people depending on your formula, $375 billion, it could be $504 billion it is a tremendous amount of money being taken out of our economy. we have to straighten it out what's happening, we put steel tariffs on our steel investors are going through the roof u.s. steel just announced they're expanding or building six new facilities last night in south carolina, right? go ahead, georgetown steel the plant have been closed how long >> about three years >> it is a british company and still manufacturing in britain and bought georgetown steel to make steel here. >> solar panels. we put tariffs on solar panels, 30%. they're all made in china. we had 32 different factories and now they're starting to open again. new plant. we had 32 and two that are open

and everyone else was closed because of what happened and what came in from other places in particular china. now we have seven that are opening and many more considered and two that were dying, they'll close and thriving right now washingt washing machines, they were being dumped all over the country. one that's not good very well. now we are putting 30% tariffs it could be a positive thing the old days when we had tariffs, we did not have income tax. when people wanted to come in. luke you look at the days of mckinly or some others, when they want to come in and rate our treasury, they had to pay a price. we did not have income tax or debt, so we are doing this and i will say and every instance and country that you can mention has been extremely nice and they

want to negotiated a deal. we are open to that. but, it is going to to be very strong we are putting on tariffs. our steel industry were ready to go out of business now the steel industry is striving united states' steel, first time in 35 years, they are expanding and going up they are building new places and georgetown steel they announced yesterday they'll open up their plant, it has been closed for four years in south carolina no, we are doing the right thing of 100%. you know you have them on both sides. the bottom line is countries are coming back now to negotiate including european union wants to negotiate because if they

don't, we are going to tax their cars and they said mercedes and bmw, they paid almost no tax when we sent cars to the european union, they charge us a tremendous tax fife times greater than what we charge them. more importantly they don't want cars they have a barriers but, if you do get it in, you will pay taxes with china, if we send a car to china, they charge us 25% tax. we make a car and we send it to china and want to compete. that's not free trade. that's stupid trade. we said 25% tax, when they make a car in china and they said here we charge them 2.5% okay so we get 2.5% and china gets 25%. that's not fair. that's not free -- that's just

stupid >> it is not just chinese, we don't want people coming i in -- hey look, we are a very smart country. we have the most incredible people in silicon valley they covered it incorrectly. they had either a leaker that did not exist or he did not know his business very well they gave it to bloomberg and the wall street journal and it was either a bad leak by someone that did not know. probably they made up the story and there is no leak i think a lot of leaks are not leaks that are made up by the writers and they don't exist this was a leak that was just off. we want to have our jewels those are our great jewels that's like united states steel from 70 years ago. these companies and we have to protect these companies, we can't let people steal the technology we have the greatest technology

in the world people copy it and they steal it we have the great scientists and great brains and we have to protect that we are going to protect it that's what we were doing and that could be done through cfius and we have a lot of things going through and we are working that out we have charged a substantial tax to some people they are coming back to negotiate and frankly if they don't negotiate, i am okay with that because i rather get the tax, okay? any other questions? the supreme court ruling was a tremendous victory for this country and the constitution the supreme court ruling was a tremendous victory for our country. of course, what do you think i would not go ahead with it >> and to the idea of deporting people without due process as well do you think -- >> we have to find the system where you don't need thousands of judges sitting at a border,

other countries look at us and they think we are crazy. what kind of a thing is that they have countries where they have no problems with people pouring in and you have countries where people do want to go in if you look at european union, they're meeting right now to top it off their immigration policy. they have been over run. frankly a lot of those countries are not the same places anymore. i am sad to say it but i said that at the g-7. they are not the same places we had a tremendous victory today. we greatly appreciate it and we needed it as a country that was a big victory and i can tell you everyone at this table is happy about it but that was a big victory of our country >> well, i think it is pretty much the final word of the supreme court. we went up and we win it and where he just waited towe just waited for the supreme court.

do i want to go in at a different one or a variety it is a very strong victory. >> you said you nted an increase -- >> we are spending $1.6 billion i would like to ask if we could increase of in light of what's happening with the drugs and the human smuggling and all the problems we have to have the wall we have to have the wall you have ports of entry. that's what people come through. they can come through legally. i want people to come into our country. our country is doing so well and we have companies moving in our country at numbers that is nobody seen in a long time we need workers. i want people to come in and they have to come in through the merits system. they have to come in so they can help our country and these companies. if wisconsin, you have one of the great mpanies of the world. they make lap laptops for apple

and they are building a tremendous plant right now in wisconsin. they need workers. i have to let people come in they have to come in america, there has to be people loving ou our country and help our country. thank you very much. the president surrounded by a group of gop senators talking everything from trade and tariffs to the immigration situation and of course today's supreme court's ruling which upheld his travel ban against people coming in from selected mostly middle eastern and muslim countries countries, north africa. the market has been selling off here on trades and investors though today is brushing off those trade fears. we are roughly around session highs right now, up 112 points

on the dow richard bernstein of richard bernstein's adviser and brad newman, gentlemen, welcome, good to have you here rich, you said we need to get ready for position of portfolios for inflation, why and how do i do that? >> tyler, first thanks for having me on one have to admit that the economy is pretty strong right now. we have product markets that are very tight and labor market that's very tight. the economy is doing very well on top of that, and what's so unusual is a public policy right now is very pro inflation. we got a significant tax cut despite tight labor markets and normally you got a tax cut at the beginning of the cycle and not late in the cycle. fiscal spending is up about 6% or 7% year on year now normally that would happen early

in the cycle and not late in the cycle. now on top of that, you are getting restrictions of products and labor. so we already got type markets and through public policy, we'll restrict that hes markets even more and that's inflationary >> richard, i don't know if you can hear the president and when he was being questioned by reporters. one of the reporters asked of his policy coming the trade could lead to a recession. he said no, we are so far off that it would not happen would you agree of that short assessment by the president? >> i am not sure just because the economy is strong does not mean it can't weaken bund are followed up by busts. just because the economy is booming -- >> the trade policy could lead to a recession, you think? >> right now there is not a lot going on and it is premature to go down that road. if you want to take a worse case

snare jcenario and if you want k ill advised decision any time, sure, you can have a global recession. >> pick up on that point, brad, in comparison of the stimulus that's in the pipeline and not just the stimulus that rich just mentioned but the $300 billion worth of profits or whatever it is, i don't know what the total number is. whatever it is, it is money coming into the u.s. economy that by comparison on its face, it would dwarf the effect of any tariffs. >> yes >> that would allow the economy to motor along unless business sentiment erode dramatically >> i think that's exactly right. the fiscal stimulus is larger than trade right now measures are going to go into effect and on trades of less than $10 billion where fiscal stimulus, we are talking about

hundreds of billions >> how do you quantify that? i am curious is it a direct impact or if you also count maybe loss of confidence or reluctant of businesses to make decisions based on what's going on with trades >> on that one, i was just doing the direct math. yes, if there is a cascading erosion in business confidence that certainly would be a further hit. regardless when you look at a fiscal stimulus on the order of a couple hundred billion dollars, it is a larger magnitude. it is going to serve to accelerate business spending tremendously and should dwarf. >> are you expecting another 20% plus earnings quarter as we go into q-2 >> yes >> when does that growth start showing up in a measurable way in the market which have been choppy for the last several months the market is sniffing some of us out and already, tech has

obviously done very well for a little while now tech is one o f the biggest beneficiaries and software in particular, we think of an unusual situation where you have the intersection of secular trend of innovation which is driven by across the country collided with cyclical off swing and business spending. businesses to get that part of improvements are turning things to software. >> that gets you to do velocity. rich, a final quick thought from you here >> brad said something very important there. the thing that investors are ignoring are two things. one is the impact on the u.s. consumers, u.s. consumers have been in a deflation shopping environment for an extended periods of time. there could be a change in terms of what's happening with consumer sentiment going forward if we are not kpacareful here

there is a little bit of washington shooting itself in the foot the economy is extraordinary healthy, let it go right? >> why are all these issues that are complicating matters and the basic under lining fundamentals are quite strong got to leave it there. thank you. >> shares of g.e. surging today. the ceo spoke to us earlier saying this is the end of the erl is it the bottom for the stock? that's coming up here. we perform over 50,000 operations a year in places like this. for the past 15 years, chubb has identified ways that we can strengthen our safety measures.

and today, our hospitals have some of the best patient safety records in the country. now, we're constructing new buildings that will define the future of piedmont and chubb is here, insuring our expansion. two million patients a year depend on us. and we depend on chubb. yourbut as you get older,thing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain

and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. g.e. is up more than 8% today. stocks are having its best days in three years ceo john flannery speaking with cnbc david faber is here, big day for stocks >> yes, have not seen a day like

this also, of course the plan to sell at 62% and roughly stake in baker use as well overtime could be 2.5 to three years before they get rid of all of it. the focus on the balance sheets, significant plan to cut debt by $25 billion the next couple of years and reduce the company's leverage ratio of two below. all that you can see today as sara referenced is at least investors are happeny to hear. and also wonder whether i am part of something having to do with aviation or a split there that clearly was not the case. the company is now powered which is turn around aviation and crown jewels and renewable the ceo says it will fit very well together. he made it clear earlier today

that there is not going to be another spin >> are you done? is this it >> we are finished >> is this the g.e. that we'll be sitting here and talking about two years from now >> absolutely. part of the analysis is inside these businesses have a lot of commonality such as the other two did not. >> such as >> jet engines coming from gas turbin deep technology and installed base and long-term service and they are deeply global infrastructure businesses. >> that's the key here, of course also for healthcare is publicly traded company on its own independent. let's call it the next year or 18 months. the company announced the intent

to cut another $5 million in costs. that comes from pushing down so many operations as opposed to keeping a fairly heavy presence at the corporate level on the overall question of g.e. and stock price, i did ask mr. flannery to speak to all of those shareholders who have spoken to me every time you may go to 30 rock, people in our own building right here for many years and have suffered the pain of watching it fall from the mid-30s to as low as 12. what do you say to them? >> i share in every sense the pain if you will my life-savings is in in the stock so i have the same connection issue we are going through a tough patch and we are dealing with the issue and we have a plan and we know where we are and we are realistic and know where we go with the portfolio and balance

sheets and how we run the company and know how to get there and stay tuned for the ride here. >> hang in there is kind of what he indicated any shareholders hung in there with an 8.5% movin is not particularly pleased >> you got to move double to make 50% it is his intent over a period of time to have these businesses in the right place in terms of being able to execute and have a growth company it is his believes if you will he believes they're not going to face any significant liabilities that are not known >> on the dividend by saying it is move to be in line with industrial peers, is that a backhanded way of saying there is going to be no elimination of dividends and dividends are in fact intact. >> they'll maintain dividends and it is not the same level right now.

the pay out ratios are going to be similar to other industrials and similarly to healthcare. it is going to pay to dividends as well. when you put them both together, they're not going to add up to the current dividend and how far it will be from that >> is this as simple and as you look back at the long arc of the company, is it as simple as saying and now flannery >> listen, tyler, you hear it many times of how much was a financial company and how much of ge's process resultiprogress resulted -- he remade the company and now it is remade if you want to be charitable but really it has been slim down dramatically >> thank you, david, david faber

on g.e >> shares of the company behind it traumatic injury, we have a shor pharma' of time to get our patient s ceo wi tel the hospital with good results. next what does this move mean? evawe have a potentialmok to mfference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away?

♪ welcome to holiday inn! k you! ♪ ♪ wait, i have something for you! evy stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

shares of gw pharma higher today. regulators making historic decision on one of its drugs just yesterday meg tirrell joins us with the details >> it was a major milestone, the first fda-approved medicine derived from the cannabis plant. the agency cleared the drug yesterday two days ahead of schedule to treat seizures associated with two rare forms of childhood epilepsy. the active ingredient is cbd, a purified distance derived from marijuana. it's not the chemical that produces a high. still, cbd is currently designated a schedule 1 substance by the drge ug enforcement agency cowen research estimates the medicine could draw more than $1 billion in annual revenue by 2022, assuming it's used by almost a quarter of kids with epilepsy who don't get enough benefit from existing medicines. it's a big leap, mel >> absolutely. meg. first on cnbc is justin

gover the ceo of gw pharmaceuticals. justin, great to have you with us >> thank you for having me back on the show. >> meg had just outlined a certain sort of key dates in terms of the timine of the launch of epidiolox. is there any reason to believe there will be a delay? that will directly impact when you can launch the drug. >> we know that the dea has been taking a great interest in this medication throughout the regulatory process and have every expectation that the 90-day limit on the time frame will be met and we are certainly moving ahead, planning to be able to launch this medication in the fall of this year >> and justin, it's meg tirrell. how broad should we expect this dea rescheduling really to be? is it specifically for epidiolex, is it specifically for cbd? what impact will that have on you and other companies? >> i'm not privy to the dea's current deliberation but what i

would say is that what we have achieved here is the approval of a specific medication, epidiolex, by the fda. this isn't the approval of cbd oils or medical marijuana. this is a medication manufactured to good manufacturing practice standards, the safety and efficacy profile of this medication has been tested in clinical trials. and so, the learnings from this process are very specific to this medication and difficult to apply more broadly to the marijuana space. i think what you saw yesterday was a clear statement from fda that if u apply the rigors of science and go through the conventional drug development process, that fda will consider and potentially improve medications derived from the cannabis plant just as they would from any other source. >> in terms of cbd, justin, and you were very clear in saying that the decision is a very specific to this, not to the marijuana industry, but in terms of your learnings from this drug in the application of cbd for

other treatments, for other diseases besides these syndromes, what are they, if any? >> yes, so, there are a few things to say there. we've been working for 20 years on harnessing and understanding the application of cannabinoids as potential candidates for becoming new medications epidiolex is the first medication from gw to be approved by fda and as you say, it's been approved for two specific childhood forms of epilepsy we are studying this medication in an additional form of childhood epilepsy and more broadly, gw has a good understanding and a pipeline of a number of other cannabinoid drug candidates in a range of different disease areas, particularly within neurology so we think this is approval not just as a landmark for epidiolex and for patients who may benefit from this specific medication, but also a strong belief from

this company that cannabinoids have a bright future in the form of other drug candidates derived from the cannabis plant. >> we hear from scientists who want to study things derived from the marijuana plant that because it's a schedule 1 substance, it's harder to do so. what can you say about how much more expensive or difficult it was in terms of restrictions and having to safeguard the substances there that developing this drug was for you guys >> well, drug development is a complex process, so we are used to, in the pharmaceutical industry, going through approvals from the fda in order to conduct clinical trials, so the real difference for a schedule 1 sbas is thubstance it approval is also required from the dea. in fact, we've been carrying out the research for about ten years in the united states under schedule 1 licenses. so, i won't deny there are additional complications, but i will also say that, in fact, this research can be done, and

in fact, we're clearly an example of the fact that this research has been done and led to a positive outcome for patients and i do want to stress , you know, our motivation here, the outcome of the news yesterday from fda, is really an important new advance in epilepsy and not just an important advance for cannabinoids as therapies but first and foremost, we care about those children with these conditions and believe that by doing research in the right way, we can provide science-led solutions for patients in need >> justin, thank you so much for your time. justin gover, the ceo of gw pharma and our own meg tirrell michelle koccoming up, why americans aren't as bullish as they used to be about a college education. plus, is the president at risk of losing his title as the pro-business president the markets rallying to session highs right now. what's behind the turn ti, e all over today's market aconso don't move because the second hour of "power"

begins right after this break.

welcome, everybody i'm tyler mathisen and here is what the on the menu for hour number two of "power lunch" for a tuesday. why the market volatility may not be all about trade we're going to take a look at

what else is in play and what it could mean for you and your money. and is this the right time to shake up the system with the american economy simmering quite nicely, could this actually be the perfect time to try and redefine our trade relationships. and a failing grade. why the appeal of a college education isn't what it used to be the surprising results of our latest all america survey. they are straight ahead as "power lunch" renews right now and welcome to "power lunch. i'm melissa lee. stocks are close to session highs right now with tech losing the dow as well as the s&p 500 the dow is up by just about 0.5% so is the s&p 500 and the nasdaq is the leader, up by 0.75% leading the dow, apple, visa, microsoft, and cisco netflix is up more than 5% after posting its worst day in two years. energy stocks on the move.

poncho, and eog are leading there. and a few retail names getting a boost today. all up more an 2% apiece i'm michelle caruso-cabrera and here's what else is happening at this hour the supreme court ruling in favor of the president's travel ban. the courts saying the immigration restrictions fell squarely within the president's authority. a judge overturning a ban of uber in the city of london company was granted a 15-month license to operate with some fraud conditions and the state department ordering companies to cut all of their oil imports coming from iran to zero by november we'll have more on that straight ahead. sara >> we'll begin the hour at the white house where the news is coming in fast and furious on trade, travel, tariffs, eamon javers standing by with an update >> reporter: that's right. just a couple of things to update you on. the president taking that victory lap that you guys are talking about here on the supreme court decision today, upholding his travel ban the supreme court deciding that it wasn't a violation of the

establishment clause of the constitution to have that travel ban in place the president saying that proved that his critics in the media and democrats were flat wrong. here's what else he said in the cabinet room just a short time ago. >> this is a great victory for our constitution we have to be tough, and we have to be safe and we have to be secure at a minimum, we have to make sure that we vet people coming into the country we know who's coming in. we know where they're coming from we just have to know who's coming here. >> reporter: and then the president going directly after harley davidson, which announced that it was going to move some production to europe that announcement caught the president's ire today. the president has really singled out harley davidson as an example of the type of company that he wants to benefit from tariffs. now harley out there saying that it might be hurt by eu retaliatory tariffs as a result of this trade skirmish that the president has embarked upon.

the president lashing out three separate times on twitter this morning on harley davidson and then also responding to a reporter in the cabinet room about a question on whether or not they had moved a plant to thailand here's what the president said about harley a short time ago as well >> harley davidson is using that as an excuse, and i don't like that, because i've been very good to harley davidson, and they used it as an excuse, and i think the people that ride harleys are not happy with harley davidson, and i wouldn't be either. but mostly, companies are coming back >> so the president saying that the people who ride harleys are not happy with harley davidson today. politically, the president very much sees harley riders as part of his constituency. we'll see how they poll on this issue and what the company has to say in response also, guys, to bring you up to speed on from the state department, the u.s. now pushing countries around the world to lower their consumption of iranian oil to zero. we'll see how much teeth that request has and how countries

around the world respond to that, but a big ask now from the state department on iranian oil. >> that's a big deal i just wanted to ask you a follow-up on trade the president said that the trade negotiations are going well he said there's a lot going on behind the scenes. he said they're going really well what's he talking about? >> reporter: well, it's not clear. i mean f if you look at what's happening publicly, those trade negotiations are not going well. you saw the g7 for example in canada last week where the president refused to sign on to the joint statement, so the president, obviously, knows more about this than we do. there are pieces of this that are hidden from public view, and we'll wait and see whether there's some big breakthrough around the corner, but for now, it does seem like we are engaging in this escalating series of tit for tat tariffs around the world with both china and the eu and other countries involved as well so we'll see where all this lands. the president trying to paint a picture, though, of a successful administration policy. >> eamon javers at the white

house. while trade is getting all the attention, seemingly, there are other factors at play when it comes to the recent market volatility bob pisani and mark santoli are on the floor of the new york stock exchange with more bob, what else is at play? >> well, there's a couple things going on first, you've seen some of these momentum stocks and f.a.n.g. stocks kind of rocky recently. netflix doesn't have anything to do with tariffs, really, and yet yesterday it was really noticeably weak. i think there may be some issues about lightniening up we've got stories about pension funds having to lighten up on certain stocks because they've had big runs and particularly in the technology group and they're are rebalancing during this week and that dollar index is up 5% this year. this quarter, we've seen oracle, red hat make comments and i don't know if you've noticed, mike and i were talking about this, the xlf, the financial etf, is down 12 days in a row. i was shocked. i called peter, our data guy

i go back 20 years, we can't find when it's been down 12 days in a row and you see names like chubb and the insurance companies and travelers, pnc and some of the regionals have been weak, down 5% or 6%, right across the board insurance, financials, you know, generally weak >> yeah, i mean, there's enough pressure points out there, plus of course the equity indexes across the rest of the world have been faring a lot worse, creating a little bit of gravitational pull i think, though, bigger picture, it's been this range bound trade. that 2,700 level of s&p has had this magnetic effect both above it and blelow it and i think sideways has been the rule that being said, is earnings season going to change that? perhaps. you mentioned the banks being weak one thing that is telling is that while we do have this trigger effect when we get an incremental new hostile trade headline, it really doesn't have a lot of life after it we have a one-day or not even one day and the market wants to

wall off >> and the 27 and range bound goes to how great the rotation has been so even as we see certain days when big names are weak, like momentum names, you get the energies moving up today, you get retail, which were horrible performers earlier in the year last month, they've been fantastic performers so that's why you get stuck in that 2,700 or 2,800 range >> thanks, guys. let's talk more about the markets. if trade is not the only factor in this volatile market, which one should matter most to your money and how do you build a portfolio to deal with all the factors? david and jason, good afternoon. david, let me start with you when you look at the trading range we've been stuck in and the volatility that's been out there, how much of that is trade and how much of it is something else >> i think it's about 50% trade, but the more lasting effect is fed tightening, higher interest rates, inflation rates becoming more problematic, and a

potential for the debt overhang to ultimately be what kicks us into a profit recession in a year and a half. but in the near term, it's trailed. a trade. and for the market, we probably have another 5% to 6% potentially on the downside which would bring us back to those valuations which were much more attractive to be a buyer in february 2016 on an earnings on cash flow basis. >> you're the second person today to talk about inflation. we had richard bernstein who said that investors need to protect their profile for coming inflation. do you agree with that >> i do. i think from the early '80s until maybe a year ago, we operated in a disinflationary environment where the rule of chum w thumb was, if i think stocks are risky, i buy bonds and in an environment where it's becoming more inflationary, moving from 2% to 3%, you have to start to think about more inflation protection in commodities, in master limited

partnerships and energy. something that's going to give you a yield, real estate in some case, infrastructure, that's going to give you a more inflation protection >> okay. >> when inflation is above 4%, i get worried, but when it's moving from 2% to 3%, i have to think about an inflation bucket going up in portfolios and there's a few cases. >> jason, you're sticking by f.a.n.g. you saw what happened yesterday and granted f.a.n.g. has rebounded but it didn't recoup all the losses from yesterday. are you concerned that with many market volatility, even if we are within a trading range, which we have been for much of the year, that tech is just the atm when things go rocky >> you know, it's a great question i think momentum is the atm when things go rocky and f.a.n.g. is part of that momentum trade. we've seen small caps pull back a little bit as well, a little bit more than the market, which doesn't make sense given that small caps are not exposed to what we're seeing with regard to global trade anxieties so i think momentum is a place portfolio manager goes to take

some off the table but that undercuts, in our view, what is some really strong fundamental stocks in the f.a.n.g. group we don't own netflix but the other letters in thaacronym, we're still very bullish on. these are secular growth stories that aren't trading at demand valuation so i think you can look to those as leaders in the market >> do you think the market will move higher, jason, this summer? or are we going to wait until things settle out or shake out a little bit and maybe the midterm elections get out of the way and there's a little more clarity on trade? >> yeah, so, short-term our predictions is not my forte but what i will say is that, you know, really what dictates the tale of the tape is the market mood and if we continue to get headlines that call into question economic growth as a function of bad trade policy, then i think the market's going to have a hard time breaking to new highs. meantime, we have the midterm

elections coming up and the market likes to see how that fleshes out before investors commit new money there are some head winds and that's a function of psychology and mood but over the long-term, we still like the fundamentals, interest rates being low, inflation being low, earnings and the economy doing well so we continue to be bullish on the market >> two different views there okay, thank you, gentlemen david and jason. >> my pleasure, thank you. >> thank you guys. oil spiking today as the trump administra tries to gets its allies to stop buying oil from iran. brian sullivan just spoke with energy secretary rick perry. >> reporter: yeah, melissa, thank you very much. i mean, i guess sometimes you get lucky. coming off the opec meeting down here in austria, by the way, for the first time, this gas conference is in america in more than 30 years, goes to show our growing dominance in lng but let's focus on the other hydrocarbon, oil to your point, some big headlines crossing earlier today that apparently the trump administration would like all of our allies to stop buying iranian oil.

obviously, part of the sanctions to punish that country well, energy secretary rick perry was here indeed and and we got a few moments with him as he was going literally from one meeting to another and he said he won't comment on the iran news but he said he did believe if there was any kind of hole in the market, remember iran exports about $50 billion worth of crude oil a year, about 2.6 million barrels per day coming out of of iran to their trading partners and if that comes off the market and there's a gap, he was confident that the u.s. and maybe saudi arabia or other opec partners would be able to meet that need the market clearly did not believe it you can see oil prices up about 3% and this is coming off the fact that we just added effectively a gross 1 million barrels of oil a day led by saudi arabia, russia, et cetera, also speaking of the russian oil and energy minister was here we spoke with him. he confirmed 200,000 barrels a day is what they're going up so even as we talk about increased

supply, the iranian news, forgive this, trumped the added supply and sent oil up 3%. it was good to get a few minutes with the energy secretary. >> all right, brian, thank you very much. i thought you were tossing to a tape there brian, good to see you thank you again. here's what's coming up on "powerlunch. betting on soda, sun block, and shampoo. could consumer staples be your best bet heading into the second half of the year and a threat with no consequences we'll look at what happens to a company in the months after the president threatens them all that and more coming up on "power lunch" as wro oe lln.

my name is cynthia haynes and i am a senior public safety specialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california.

we've got a news alert on facebook. >> reporter: facebook is reversing its ban on cryptocurrency advertisements and will now allow some preappd advertisers to promote their cryptocurrency business that according to rico the advertisers that are now approved by facebook through an application process will be able to promote their cryptocurrency products, although worth noting, as promoting binary options and icos, initial coin offerings, are still banned this comes aft facebook did put a ban on cryncy ads back in january, but this reversal is a sign that social

media industry along with regulators are working together to kind of get the bad actors out. back to you guys >> i don't know if it's coincidental but there was an op-ed in the "wall street journal" today by an anti-trust attorney talking about it may be collusion on the part of these two organizations, facebook and google, to ban these ads, because they may also be involved in cryptocurrency at some point >> eventually. i think it's strange that the ads will be preapproved or the products will be preapproved that implies that google is going to be doing some sort of due diligence. >> vetting and stuff >> which is a whole other liability for the company. but interesting news sma, thank you consumer staples have had a tough year so far. big brands like general s, kraft heinz, all seeing double digit declines, dragging down the sector, making it the second worst performer this year. it's been a different story during the month of june the sector is outperforming the broader market nearly 5% what's in store for the second half of the year

let's bring in nick for some top picks in the sector as we look toward the second half so, there's a bid for safety and sort of defensive stocks, which is keeping consumer staples up here for june. does that continue >> it looks like the interest rate trade has been over the problem is -- there are opportunities, don't get me wrong but lot of these companies are under pressure and i think the numbers need to come down. i understand the risk aversion and what's going on with the tariffs, et cetera, but as earnings start coming out, i think there's going to be a rude awakening. >> some of your picks, coca-cola. sticking with them >> keep in mind on altria , we upgraded the stock we had an underperform on the stock for about a year and a half so with england t-- we thid reward looks good.

honestly, tobacco stocks don't deal with thme problems as these other consumer staples commodityt, and retail evolution online. it's illegal to sell cigarettes online so they don't get disrupted in that way. on cody, we had -- we were negative on cody for quite a while. this new ceo and cfo came in and they've made changes we think we're at the very early inflection point of that applies biz and th -- business and that company starting to do better. >> there's news about pinnacle today, deals there more of the same of what we're seeing in this industry, right these guys feel like they got to get bigger in order to get scale and offset some of these trends that you inferred but -- >> yeah, exactly i'm surprised we haven't seen more, actually so, the reality is these companies, a lot of them are going to have to combine -- they're going to have to leverage some of those cost savings and honestly, all of these companies should be able

to be the disrupters they have the balance sheets, they have the resourcing, they have the r&d, but they're all too scared to take those short-term earnings hits to really adapt to where we are right now. >> consolation brands made an investment in cannabis do you expect more companies within your universe to do the same >> absolutely. you heard -- >> is it spirits is it tobacco? >> in the press recently, moelsen coors has been discussed as looking at scanncanadian can firms to partner up. if you think about the occasion that cannabis will go after, i think you're going to see the beverage alcohol category be involved in looking at the space. >> you said you expect more big deals, more deals of scale is that really more effective to grow than more spinoffs and getting smaller? >> it depends on the deal. you know, we just put out a big futures 2025 piece today, and sometimes these kind of out of the blue alliances can really catapult you look at amazon and whole foods no one was expecting that to happen and that really -- >> nobody is amazon.

>> well, that's a good point but i don'cessarily think big deals with the answer. i'm just saying i think a lot of these companies have no option but to do big deals because they're not willing to divest as much as they should in order to see that dilution in earnings so that's a problem >> two potentials in the food space happening. thank you. president trump's trade rhetoric rattling markets and forcing companies to rethink their plans. is trump at risk of losing his title as the pro-business president? plus a lack of college confidence we will take a look at why americans aren't as bullish as ey used to be on the traditional four-year education. ♪ 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, 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.

need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. what do advisors look for 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. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives,

risks, charges and expenses. flexshares.com for a prospectus containing this information. read it carefully. is college worth it? lot of parents and students ask themselves that question every time tuition is due. will it really pay off in the long run steve liesman asking those questions in the cnbc all america economic survey. steve? >> reporter: michelle, thanks very much. our cnbc all america economic

survey finding americans losing that school spirit specifically, the college school spirit take a look at the question we asked in 2013. what would you recommend for your son or daughter pretty comfortable margin for the traditional four-year college. 58% to 42% right now, a little bit of division in america. 51% to 49% let's look at who is where wi different demographics that we have here. over my left shoulder, democrats, 60% in favor of college versus republicans, 40%. those who went to college, 66% in favor of college, versus 42% among non-college. income, as you go up in income group, they favor going to college more so than those in e $30,000 to $75,000 if not college, then what? take a look at what this 49% think. you can see right here, a growth in those who support trade or vocational schools compared to 2013 we asked the question another way. is a four-year degree worth it, do you think and so the question -- the

choices we offered people was, no, because of, you don't get specific skills for the workforce, and you get high debt or yes, you get jobs and you get high earnings. these are the numbers back in 2013 pretty comfortable margin for the four-year college. now again, showing this division, 44% to 46% let's look at who specifically has lost the college spirit. take a look here those in the lower income groups, minus 13 points compared to 2013. and even some loss among the higher income groups noncollege, minus 6% even those who went to college compared to 2013, they are less inclined to support this idea of a four-year college degree guys, we've seen that a lot. we've done a lot of talking about that on this show, this idea that americans because of the cost, because of the deb associated with it are rethinking the idea of the traditional four-year college. tooiler? >> steve, thank you very much. the finance industry has come a long way when it comes to creating quality between men and women. a look at what they're doing to

close the gap. plus a long-time ge shareholder will tell us what she thinks of the company's plans for breaking up. did it go o tofar, not far enough we'll cover all the angles on "power lunch." but the market wp nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat with us on facebook or call our experienced service team, 24/7. yep. just because you're doing it yourself doesn't mean you're on your own. that's great. you're still up. alright. you're still up. if i knew you were gonna run the table i wouldn't have invited you over. call (866) 296-7451.

act now to take advantage of commission-free trades for 90 days, plus get up to an $800 cash bonus when you open and fund a new account. ♪

hello, everyone. i'm sue herera here's your cnbc news update at this hour. president trump saying the supreme court's decision in favor of his ban on travel from several mostly muslim countries is a great victory for the american constitution. his comments came during a meeting with gop congressional members at the white house >> today's supreme court ruling, just coming out, a tremendous success, a tremendous victory for the american people and for our constitution this is a great victory for our constitution we have to be tough and we have to be safe and we have to be secure uber granted a new shorter license to operate in london after a judge said it had made

the changes required to be deemed fit and proper. the judge ruling the ride-hailing service could operate in london on a 15-month license subject to strict conditions also in the uk, barry gibb has received a knighthood, saying he hopes his late brothers are proud of him. gibb is the last surviving member of the trio, who are behind such 1970s hits as "how deep is your love" and "staying alive. that is the news update this hour melissa, back to you stocks right now moving higher into afternoon trade but off the session highs. s&p 500 up by about 12% and the nasdaq is higher by 0.6% energy and technology and discretionary are your leading sectors right now. telecom meantime is lagging. semiconductors are seeing pop today after yesterday's down day. micron, amd, and lam are leading

there. shares of avis and hertz getting hamm today you see there, hertz down 11.5% and avis is down by 10%. the oil market is closing for the day. let's get to jackie deangelis. >> hey there, melissa. well, crude oil spiking more than 3% today, crossing over that $70 threshold it happened on these headlines from a state department official saying that the u.s. is going to push allies to cut oil imports from iran to zero. this is one of the reasons that opec felt this pressure. tempering swings like this but the market still reacts of course session high today, $70.64 also notice that the spread between wti and brent is closing in from about 10 last week to 5 now. tells you that wti is more in favor than it was. >> big moves there thank you, jackie. harley davidson, an iconic american brand, feeling the

wrath from the president today so what happens to companies a few months after being targeted by the president let's bring in phil lebeau from chicago who of course has also covered boeing, the airlines, et cetera. hey, phil. >> reporter: lots of companies that have been targeted by the president in the past when it comes to tariffs and tweets. let's start first off with the commenthat got a lot of attention this morning from president trump when it comes to harley davidson and this decision to move some of the production overseas. "harley davidson should never be built in another country, never. their employees and customers are already very angry at them if they move, watch. it will be the beginning of the end. they surrendered they quit. the aura will be gone and they will be taxed like never before." so, what does harley davidson have to say about this we've asked today and we have heard nothing back so harley is not responding to the latest trump tweets remember, their global sales -- 60% of their sales come from here in the u.s. the remainder come from a number

of markets, including over in europe they have said these eu tariffs -- and this is one reason the stock has been moving lower -- these eu tariffs will cost the country between $90 million to $100 million annually let's look at other companies that president trump has targeted in the past go back to apple in apple's case, they said the trump -- president trump said, boycott all apple products, and this was in february of 2016, until such time as apple gives cell phone info to authorities regarding radical islamist terrorist couple from california we're not going to get into that whole story there but did people boycott apple after then-candidate president trump put this out uh-uh. their sales were strong in 2016 and strong in 2017 and this then december of 2016, the president said, there will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, ac units, et cetera, back across the border well, take a look at what's

happened to a auto exports from mexico they have not slowed down. in fact, they're up 9% in 2017 they're going to hit a record high this year, guys so while you don't want to be the company that's targeted by the president, the bottom line is this. it doesn't always mean that your sales are going to go down the tube and that people will say, well, the president doesn't like them, i don't like them. >> right phil, impacted to swit wanted t little bit and talk about tesla. on an intraday basis, that stock really reversed. it was up as high as 2.75% seemed to coincide with elon musk's tweet about the semi truck. >> reporter: pickup truck. he basically said, what would you like in a pickup truck lie trooii trying to look at the nuances that would attract buyers. that was it. there was no time component, nothing with him saying, oh, we're going to build a pickup truck at x time and here's what it looks like. it was a very innocuous tweet so if that's the reason that the

stock moved higher, you know, it's hard to rationalize why people would be excited. >> are these new features? dual motor, a suspension that adjusts. >> reporter: features are relative they haven't come out with any features for this vehicle so it's pie in the sky dreaming right now. it's pie in the sky dreaming i mean, there's all kinds of possibilities for this truck, so it's one of those things where this stock is moving today if it's moving based on this tweet, i would be really surprised, but stranger things have happened with tesla >> absolutely. we got a news alert on trade and booze. courtney reagan has the details. >> hi there, michelle. if you plan on sipping jack daniels in the eu, you'll soon have to pay a little more for it n-forman raising the price of its whiskey in response to the eu's 25% tariffs on u.s.

bourbon. the louisville, kentucky, spirits maker says it's up 25% because of the complexity of the pricing and the multitier distilled spirits industry, and that it's raising prices to, quote, protect brand profit and continue to invest behind the growth of american whiskey in the eu so, you got to watch out for those price hikes. they will hit the product that's shipped after the tariffs are in place and that happens over the next several months. it will be different in different markets. fwook yo back to you. >> brown-forman's stock has been a disaster because of this courtney, thank you very much could president trump's tweets against harley davidson tarnish his brand as the pro-business president? let's bring in patrick he's chief strategist with silver crest asset management and jim, economic policy analyst with the aei is also a cnbc contributor. patrick, let me begin with you the president has from time to time picked on individual businesses is he pro-business or does he just pick fights with companies

that irk him >> so, there are two ways of being pro-business you can be pro-market in which you're trying to create an environment in which companies that are productive and innovative can thrive or you can be crony capitalist in which you're picking winners and losers and the success or failure depends on whether you're on the president's good side or bad side and unfortunately, all too often, many of his tweets and even some of his policies have tended towr so you know, that could be good for a business that has good political connections, good lobbyists, but not necessarily for the overall economy. >> when you use the phrase, crony capitalism, it suggests that there is some sort of quid pro quo that the administration gets something in return for behaving the way the president would like them to do. here, i don't see that necessarily. >> so that's sort of the strong definition let me say that there are, you know, i've spent a lot of time

in asia and there are economies that work based on corruption that way, but there are also economies that it's about picking certain companies that you want to -- that you want to win and others, because they cross you, politically, that you want to lose and i don't mean to imply corruption what i mean to say is that politics trumps the market >> so, jim, let's talk about that in these cases, it feels to me like there is -- there is a principle standing behind many of the fights that he has picked with these companies, and i think his base probably appreciates it even if the executive suite does not so, talk about that, and talk about what the reaction would be if a president named obama were doing the same thing >> well, the reaction among republicans is they would probably call obama certainly a crony capitalist at minimum and they would probably call him a

central planner, a marxist, or something on the other end of the scale. the president's principle, i think, is one to say good things about companies that probably say good things about him, seem to be investing in the u.s., seem to be helping american workers. now, that's some american workers. some people will benefit from his trade policies companies that make steel may benefit, but there's going to be a far more losers and when we talk about picking winners and losers, the president has picked sort of companies and workers that sort of appeal to his economic nostalgia, whether or not that's most workers, and it won't be most workers, but it will seem to be a core group of workers that he's interested in or he believes forms his base, and it's that kind of soft crony capitalism that we're seeing >> it's really interesting, jim, so courtney just reported on the brown-forman price hikes overseas so this is american whiskey, american harley

davidson motorcycles, i mean, we're also potentially waiting for announcements from the peanut butter companies and the blue jean companies which are also targeted by places like the eu because they're trying to get to the politically sensitive states, or even if they don't admit that, that's what's happening. the question is, is this disconnect going to continue where the companies in those states get hurt as a result of the tariffs, but the voters in trump's base support him >> listen, i think if we -- we're going to start hearing more stories because there's going to be far more losers and every sort of local newspaper and local news, you're going to hear more stories about that company that makes the nails, you know, the small local manufacturer that their steel prices have gone way up and they've had to lay off 60 workers. you're going to hear more about the harley davidsons and those stories, as they start trickling down and that trickle becomes a flood of these companies kplien complaining, i think that's going to have an impact, even if it doesn't necessarily show up in the gdp numbers because the economy has a lot of momentum right now.

>> patrick, your reaction there. do you think there are going to be a lot of losers as a result of this trade competition? >> yes, i think there can be, and i think it's the reason why united states and globally since the beginning of the year. even though we've seen some very good economic numbers in the united states. by those numbers, the markets should be doing much better, and when we look at things like the bond yield curve, flattening out and even by some measures globally inverting, which would suggest a potential recession, i mean, what the market's telling us is that, yes, there's some -- a lot of momentum that we see currently, but there are a lot of things that the market's seeing that could disrupt them and i think trade is high on the list of things that could even bring this cycle to an end if it's not handled right >> patrick, thank you very much. patrick and jim, appreciate it

a new survey showing men and women on wall street see gaps in pay and in opportunity based on gender some straight ahead, we'll bring you some solutions for closing the gap. an important story coming up on an important story coming up on "power l find the remote yet? an important story coming up on "power l nah. honey look, your old portable cd player. my high school rethainer. oh don't... it's early 90s sitcom star dave coulier... cut...it...out! [laughing] what year is it? as long as stuff gets lost in the couch, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance.

cnbc and linkedin have partnered on a new series of surveys that explore the gender gap in the workplace today, focusing on financial services and here onset with more on closing the the gap, women in finance is our own julia boorstin >> thanks so much for having me. our linkedin survey of finance professionals found both men and women see gaps in pay, promotions, and opportunity and women perceive the gaps to be bigger than their male counterparts do so what do they say are solutions to closing these gaps about a third of both men and women say an unsupportive or biased corporate culture is the biggest obstacle preventing women's advancement. while nearly 20% of women say the lack of female leadership is an issue and 14% of women say it's a lack of mentorship in the workplace that's the biggest issue. women and men both list the importance of a more flexible work schedule to foster a more inclusive environment for everyone and while it wasn't presented as

one of the survey options, a number of women wrote in that equal pay is key to retaining female employees only 44% of the respondents say their companies support official initiatives while 23% say they don't know if their companies support any such programs. almost no one says the biggest obstacle is women opting out from leadership positions because that's something we hear a lot about. but we have a lot more on the survey results, both where the gaps are and where the solutions are on cnbc.com. >> i was wondering if anyone presented a solution to make maternity and paternity leave equal. >> that's one of the things a about a flexible work schedule we didn't have a specific thing about parental leave but there have been studies talking about if you just increase maternity leave, it's actually bad for women. the thing that's better for everyone and better for women is having increasing parental leave, because then you have men taking time off as well.

>> because the issue is that when women take that i mean off, they worry, they get penalized, miss out on promotions, et cetera, and if men are taking the time as well, then in theory -- >> it equalizes things making a broader parental leave strategy >> julia, thank you. on general electric's first day out of the dow, we will talk to a shareholder who has been bullish for years on where she sees the stock going next. it's higher today as you see right there. stay aadoror"per nch.he f me ow we're drowning in information. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm

that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley. [ horn honking ] [ engine revving ] what's that, girl? [ engine revving ] flo needs help?! [ engine revving ] take me to her! ♪ coming, flo! why aren't we taking roads?! flo. [ horn honking ] -oh. you made it. do you have change for a dollar? -this was the emergency? [ engine revving ] yes, i was busy! -24-hour roadside assistance. from america's number-one motorcycle insurer. -you know, i think you're my best friend. you don't have to say i'm your best friend. that's okay.

time now for "trading nation," ge spiking up 8%, tracking for the best day in three years as it makes move to spinoff the health care unit, baker hughes stake, ge removed today from the dow jones industrial average after more than a century, replaced by walgreens. rich ross is here, so, rich, on the chart, it was ugly, but see signs of a bottoming formation with a big move? >> sarah u up 8% on the day, but down 80% over 18 years that's no way to go through

college. so to your point, when you look at that chart, bringing that up, a bottom is a process. it's not a a price you've moved sideways the last four months here, setting up a potential double bottom at the tail end of this historic-type collapse, but you can't get back above the 50 day at the 14 level let alone the 150 day at 15 and change i trade it, don't trust it longer term, you can see the magnitude of the structural decline. manage expectations here could be a trade in this stock, but let's not get ahead of ourselves. >> a trade higher, you're saying >> well, look, the trade for now, if you come on the show and tell people to sell g at this point, you're not doing your job, so is there a trade to the upside yes, but buy it here, stop around 1270 on the trade given the magnitude. >> trade, but no trust stacey, as far as what we heard today in the moves outlined this

morning, did investors get what they wanted? >> yeah, well, we certainly got a lot of the good information. it could pull the trigger saying we are separating ourselves. the new ge is different than the old ge it was a necessity this is what we wanted rich's point, i agree, this is a longer term trade. quick fixes are not happening overnight, and i do like rich's idea, this is a name to trade around me, personally, i'm not adding more to the positions here, but i like the idea of trading options around this. options are actually elevated just given some of the volatility in the movements seen so i think investors can pick entry points and exit points versus long stock. i like that particularly since longer term, i do like the story, but it takes awhile to play out >> thank you for more, go to tradingnation.cnbc.com follow us on twitte twitter @tradingnation now the latest from tradinga

word fr sponsor. >> short selling can help you profit from a stock's decline, however, because it involves unlimited risk, you must have a plan first, screen for poorly rated stocks showing weakness versus the broad markets. sec, look for the stocks with the poorest technicals in that group. finally, incorraisk pote r management techniques into your order to limit the potential losses need a change of scenery?

the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote.

in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

walgreen's is the new entrance to the dow, and it's not a nice first day performance. >> welcome to the dow. >> yes, welcome, one of the worst first days performances ever the financial times looks at the price action on the first day. looks like it's tied now around -- when intel was added, november 1st, 1999 that fell 2% we'll see. walgreens not down that much at this point >> walgreens replaces general electric, and you always joke or observe at least that oumwhen a stock is pulled from a dow, that's when it's finally turning and going to rise again. almost on cue, the very first day it's not in the dow, it's higher by 8.5%. >> i think you rip out the dow components that have not been doing well, they sprint a little bit. right off the mark there >> i think for once, investors have some clarity at least what ge looks like.

what would they vestere's a road map we know about the dividend to the extent that the company does that is dividend, right sized todd new company that ge will become, and it will, in fact, be attacked, it's not knowing what the fate of the dividend could be if it e lieliminated that, that would be ridding of funds, and that's a world of hurt there >> boy, a transformation, another one, the one that owned the parent company, nbc, and home appliances, and lightbulbs. >> and medical devices, medical imaging devices, a big growth area for them at a time, run at one time by john flannery who turned it around obviously, he's not a sentimentalist riddling the division he used to run. >> they used to own us it would be that anybody watching on cnbc has this in their stocks we are allowed to open them for

decades. >> interesting to see flannery say his life savings is tied up in the stock i wonder what the tie was. >> he said he didn't feel a thing. >> well, thank you for watching "power lunch," and "closing bell" starts right now >> i share in every sense the pain, if you will. you know, my life savings is in this stock we know where we are we are realistic about that. we know exactly where we want to go with the portfolio, with the balance sheet, with how we run the company, and we know exactly how to get there, and stay tuned for the ride here. >> general electric's ceo asking investors to believe in his plan for the industrial giant i'm kelly evans at the new york stock exchange more details on ge's strategy coming up on the "closing bell." >> reporter: harvey davidson locked in a war of