deal, the nurnmbers don't work even if it did raise revenue. >> compared to college, free college tuition, all the things they want to pay for, not going to be enough. >> thank you that does it for the exchange i'll go join tyler and melissa in a few minutes on "power lunch" which begins right now. big progress on the biggest worries for the bulls. is it time we ask to put money back to work trade talks back on the first face-to-face since president trump and xi met at the g 20 any closer to a deal and the world's biggest health care conference under way as we speak and a lot of moving market headlines coming out our own jim kramer with a slew of c oreos and "power lunch" sts right now.

>> welcome, everybody, to "power lunch. i'm tyler mathisen in the green as you see right there by percentage points or so, following comments from president trump. backing off session highs. more on that coming up he'll speak to the nation tomorrow night small caps, biggest gains. now trading out of the bare market levels that they had descend into for the past few weeks. oil jumping on reports, the saudis plan to cut production in an effort to boost prices back to $80 three stock movers this hour we'll tell you about those and the parent company of the syne, the low coast wall street exchange netflix soaring in the first ever golden globes win for a movie and tesla rallying the company breaking ground on a new plant over in china. more on tesla ahead. kelly? >> thank you, tyler. here's what else is happening this hour. shares of altria smoked on a

downgrade. the analyst calls us americans who think it's a good time to buy a home dropped sharply by mortgage giant fannie mae. amazon is the biggest company in the world by market cap and apple dropped to fourth. stocks are rallying but off their highs. bob at the new york stock exchange bob? >> in the last 20 or 30 minutes. better than 2-1 advancing in declining stocks all the good retail news and not surprisingly, having a pretty good day overall in the retail sector nice moves up in abercrombie and fitch, all department stores moving to the upside saudi arabia talking about lowering production, waiting for that to come through overall and utilities, consumer staples. defense names they're all lagging. big moves up in retail names today. in terms of the turnaround,

well, it's been pretty amazing, i would say, in the last five or six days here's the three things i think matter most for the overall market graded clarity from the federal reserve on interest rates. that's the most important thing. china trade and tariffs. talks are resuming the vice premier stepping and participating in that. quite serious. and chinese economy is a separate issue from tariffs completely government there is more and all three different moves. gas prices, 20% lower. much lower recession risks and earnings, numbers come down a bit but not dramatically a much different market than even one week ago. remember the terrible close we had on december 31st back to you. >> bob, thank you. last hour on the "the exchange," miller telling kelly he's not seeing any signs of a slowdown we're 65 years away from the

next crisis and also bullish on big cap tech and still bearish dave rosenberg now, chief economist and great to speak with you you see the risks of recession rising what is bill miller missing? >> i'm not really sure did you say 65 years or days >> 65 years. a lifetime basically from the next crisis. >> we should all give forecasts that we'll never have a chance to live to see anyway, look, everything that's happened in the past couple of weeks, volatility runs in both directions haven't altered my view on where the economy is headed and without trying to time it to the week or the month, we have to try to continue to play the probabilities. i've been saying all along is that we've had 13 fed cycles in the post-world war ii experience land of the economy in recession and three didn't and maybe this will be the

fourth what i'm saying is that if you look at the historical pattern, 80% of the time in the past, the lag with the recession and i'm not saying it's an easy call to make most economists, in fact, the fed on the eve of the recession when you go back to the transcripts and look at the green book presented, the fed itself never sees the recession coming, the month it actually starts, but it's not necessarily just a call on the yield curve itself it's really the reality that when you look at the fed's balance sheet movement and the rise in rates, collectivity, the fed raises rates and into the context of the most leveraged economy we've ever had and that has lagged impacts on gdp. so this isn't a story today. it's a story in the next couple of quarters but the lagged impact of the rate increases are going to bite the economy given how leverage is and bite it pretty hard and i think that's been one of the early messages

from the markets over the course of the past several months. >> embedded in what you're saying, david, are you concerned about the impact on these balance sheets of rising rates do you think that companies may not be able to service their debt eventually? >> i think that's, i mean, sort of the key question. it comes down to which asset class you want to be invested in for the coming year because there are some things that we do know we do know there are lags between what the fed does and the time it hits the economy we also know, and it is pertinent to your question, this is the first year, 2019, of literally a four year tsunami of corporate debt refinancings as we pay the piper for all the issuance that took place to buy back all the stock and it will take place at higher interest rates than where the debt was originated it's unclear whether this will cause a whole crisis of fallen angels or all the triple b's that slip in to junk bond status

and there's another narrative you can accept that companies instead of defaulting or instead of risking being downgraded which affects their cost of capital will take advantage this year of whatever cash flows they generate to retire debt or certainly towards servicing their debt that comes at the expense of a lot of the things that propelled the stock market this cycle. it wasn't just the economy but the weakest economic cycle of all time stock buybacks will pay the price and dividend payouts will pay the price but something else that pays the price as we saw in 2001 and 2002 is that i think the defining features of the recession that i'm expecting and i'm not going to say it's a sure thing, but it's my case that it will be a year of corporate deleveraging and the first leg will be capital spending which why i don't really understand what mr. miller is saying. housing, for example, in a recession of its own but the big surprise in the last several months has been the decline in

capital spending we saw in the third quarter, business capital spending but the goods capital order numbers have seriously rolled over and the defining kacharacteristic this year wille the cap recession with knock-on effects elsewhere. >> to buput a button on this whe thing. 65 years away from the crisis, what's your prediction >> here, i'll take the under on that >> that's a big under. >> i'm not into predicting crises but i would say, look, i think that it's not even about that after ten years i agree, jenny ellen said and of course everybody likes to say no expansion die of old age i know that. jenny ellen should also know after having been so long as the governor and chairperson, these expansions then at the hands of the fed, there's lags. i'm not going to predict a crisis looming or a potential

black swan but i do think this is going to be a really rough year for the economy if you're asking about the stock market, i think at those lows on december 24, about half that narrative got priced in at that point. >> good to see you, david rosenberg. trade talks are back on. president trump is set to give a primetime address on border security ylan mui with more >> reporter: still dealing with the shutdown here at home. the president tweeted he plans to address the nation tomorrow night at 9:00 p.m. eastern he said his talk will be about the humanitarian and national security crisis at the southern border as this shutdown drags on into its third week. also happening tomorrow will be the end of the trade talks in beijing. leading that delegation has been deputy u.s. trade rep jeffrey garish followed by others that

have a big stake today, commerce secretary wilbur ross said on cnbc that the u.s. sees this as a binary option reach a resolution or ramp up terrorists and he said china finally realized the same thing. >> china now understands how dependent they are on us zte was a very big wake-up call for china. i don't think they had truly realized how much their high-tech companies depended on american ones but you remember when we cut ctu off from u.s. supply, they essentially shut their doors. >> one challenge for the u.s. is that all these agencies that are handling the trade talks are all actually shut down as well so all of these issues are actually connected and it's going to make it really difficult for the u.s. to hold any follow-up meetings if this delegation decides to come to beijing. >> ylan mui, thank you very much

how close could we be to a trade deal cnbc contributor john, always great to see you. how encouraged are you >> good morning. >> if encouraged you are by what you're seeing working in the background >> well, you know, tyler, i've been a pretty strong critic of the way they've approached this by sending high ranking guys on airplanes. this is actually a much better approach they sent the worker bees over the worker bees on both sides are working on a deal and there's talk about an announcement, davos, a great photo op for trump and the vice president of china, so i think they could pull something out of a hat. there's a lot of areas where you can actually announce progress that's very difficult to know if it can be policed. but i think we will see some kind of an announcement here >> so what are the areas where you think the greatest possibility for some kind of

cooling down are is it in the area of intellectual property, technology transfers, their 2025 industrial pledge to modernize and become not just a manufacturing power but a technology power >> well, the 2025 deal is not going to happen. that's basically them growing up from being a teenager to an adult. they're going from assembly to high-tech manufacturing and technology they're not going to give that up and we shouldn't expect them to the easiest things to get deals announced on are them buying things they can announce they'll buy nine tons of soybeans or a bunch of cars or a bunch of steel and that makes a great headline. it just doesn't really make much happen. >> is that what this is all about? selling more soybeans and steel to them? or goes deeper than that >> that's the low hanging fruit. more important is intellectual

property and what many americans don't realize, intellectual property is the way a lot of people make their living inside of china, so jack, the guys at alibaba, new legislation is being put in place in china that increases penalties for stealing intellectual property. it has to be enforced but it's easy to announce, so i think, again, you're going to see some headway there, some announcements that are bigger than the reality you'll get at the end of the day you may also see something on the banks. there are applications in for approval to buy more shares of chinese banks. there's huge profits there to be made and auto is a pretty easy one to say something about the tariffs there are not on anyway, they're in suspension. >> so you think there will be some sort of announcement of progress and maybe some things that sound a little bigger than they turn out to be. what does a win look like from the chinese?

obviously, their economy, their stock market is sputtering a little bit compared to where it had been what do they need to get >> stock market is down 34% in the last year, so that's a big sputtering but ours is down too so both economies, both presidents have reason to try and pull something out of a hat here and look like we're making a trade deal so i think there's incentive the slowing news here in december and in china that we've seen for the last six months, all make both teams want to do something and as i said, the fact that we have actual people there who can do work rather than people who are a much larger personality actually is a good sign for this >> john, thank you very much john rutledge, appreciate it >> pleasure. >> you bet. shares of altria are falling today. the major investment in juul the downgrade hurting the stock

and loxo oncology after eli lilly agreed to buy the company. we'll hear about the ceo and bristol-myers ceo on the acquisition of cell gene or the one awarded by the people? uh... correct! you don't have to choose, 'cause, uh... oh! (vo) switch to the network awarded by rootmetrics and j.d. power. buy the latest galaxy phones, get galaxy s9 free.

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altria invested in juul vivian, great to see you a key thesis is you believe this investment of juul is a right one but you think this will incentivize altria to accelerate the declines they're already seeing i understand the declines have been going on for a very long time, but why are they incentivized now to see that go faster >> certainly, so as a function of the deal, juul and altria have entered into a client service agreement. essentially putting altria's cigarette and broader tobacco sales force on behalf of juul to include three different components number one, they'll give juul shelf space within the cigarette shelf set that altria controls, the back bar number two, they'll give juul access to their online consumer database of u.s. cigarette smokers and lastly, altria is committed to put juul coupons

within their own packs of cigarettes. >> how should investors think about the roprofitability of regular cigarette versus juul? i don't know how you'd break that down per unit, per tank vaped. what's the comparison? >> about the juul/altria announcements, altria didn't offer anything about juul but what they've said about reduced risk products. they're thought to be more >> did they overpay? >> it was an eye watering valuation. >> it was. $38 billion is the valuation of juul that's bigger than, i don't know, most of the companies that trade in the s&p 500 i'm sure, vivian >> yeah, well, you know, altria is long-term thinker and to the extent that the trends you're seeing amongst young adult

smokers increasingly gravitating towards e-cigarette smokers, not only helps them offset the declines in the cigarette business but provides them incremental growth opportunity because altria is a strictly u.s. based company but juul has aspirations to move beyond the u.s. the product is already available in the uk and canada and israel. >> what about any regulatory risk this company faces either to the closure of the deal or down the road or, you know, as mr. gottlieb, it sounds like a pretty aggressive guy when it's with reference to these vaping products, but was there a wink and a nod that this is going to be okay or what? >> well, from a deal closing perspective, that really wouldn't fall under the fda's purview. that would be an anti-trust doj issue, the e-cigarette category is still quite small so we wouldn't think that would present any hhi issues on the calculation there. in terms of fda regulation,

director gottlieb has been very vocal about his concern around the epidemic of youth vaping incidents. obviously, juul has made some commitments to the fda about restricting access to the product at retail. both altria and juul both recommended to the government that the broader purchase age for all tobacco products be raised to 21 so both al tree tria and juul a trying to work productively. >> vivian cowen, thank you >> bigger than delta airlines. >> huge. >> we talk about the tech start-ups, that's one of the best retail stocks are rallying today. the xrtetf moving for the fifth time in six sessions look at stitch fix k carvana. speaking of mr. kramer, he's

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rallying 4% today. is this a sign of a retail resurgence and if so, what name should you reach for craig johnson and global ceo gina sanchez weigh in. craig, is this a bounce in retail stocks you can trust? >> i think it is a bounce that we could trust if you look at the xrt, we have corrected about 28% from pete to trough we're off the october highs. a move further than here, back to the 200 day moving average. it's not just some of the smaller names like five below and stitch fix that are seeing those moves. even some of the more defensive names like dollar tree with longer down trends and here on those kind of stocks. >> 10% to 15% up wouldn't get you to the old high. there's room here.

american consumer worth a bet here >> i think we are starting to see some wage growth but unfortunately, a double edge sword for the retail sector. while that will drive spending and see earnings growth, it will likely pair down and go how strong it is it's a sign and also go up for retail and the bricks and mortar versus amazon trade i think the consumer is healthy here overall >> that's a pretty good bottom line then. at least we don't have to worry about the macro just yet thanks to you both for more trading nation, head to our web site or follow us on twitter at trading nation. melissa, back to you. >> thanks, mike. here's what's coming up on power lunch. biggest health care conference is coming up mad money jim cramer was there and he joins us live with the largest headlines and kick off

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i'm sue herera kevin spacey's legal team entered a not guilty plea on his behalf to charges the actor groped an 18-year-old busboy in a massachusetts bar in 2016. spacey was arraigned on a charge of felony indecent assault and battery. another hearing for march 4th in which spacey does not have to appear the partial government shutdown entered the third week and the tsa is dealing with what

appears to be the beginnings of a blue flu a sharp up stitick in agents cag out sick with concerns they're not getting paid ruth bader ginsburg is missing arguments for the first time in 25 years as she's recuperating from her cancer surgery. they removed two from her left lung the goodyear blimp has been named as an honorary member of the college football hall of fame class of 2019 the blimp debuted at the 1955 rose bowl and it has covered more than 2,000 college football games since then that's the news update this hour i'll send it back to you. >> sue, thank you very much. sue herera oil is rallying today on reports of saudi production cuts the oil market is closing for the day. dominic chu over at the

commodity desk. >> another update. five day winning streaks for west texas and brent crude prices but closing off the day at session highs wti was 49 and change. bren ton was nearly $55 per barrel and the partner countries it has and got a bit of a jolt today on dow jones headline that saudi arabia was looking to cut oil exports by 800,000 barrels a day by the end of this month you add that to the more stable equity markets and abroad and traders will see if crude can continue the rally it's 15% at this stage from the lows that we saw, tyler, on christmas eve. back to you. >> dominic, thank you very much. the action >> we have had a nice reversal from rates moving lower to make rates moving higher. if you look at a two day of twos, we overshot friday's

range. trading above. that's good. up two basis points on the day ten year as well and still unchanged but definitely a nice reversal and if you look at the dollar index, there's all your reversals then it just keeps ongoing down it's down about a half cent today and hovering 95 2/3 and this will be the lowest close in the dollar index since about mid october and it really is quite important because if you take a macro step back, a lot of the nervousness in the markets has given way a bit. now, granted doesn't mean everything is done but from the dollar index perspective, there's certainly a lot less buying going on and that's something to consider as we move forward. kelly, back to you >> thank you, rick rick santelli there. the biggest of the year under way. more than 315 public companies and 9,000 attendees gathered at the j.p. morgan health care conference in san francisco.

one is our own jim cramer with a full slate of power player interviews and sat down with lilly's ceo to talk about the deal of the day. the acquisition of biopharma company loxo oncology. >> we like to grow our presence in oncology. a good set of medicines because there's so much exciting science for patients so many things to invest in. particularly attractive to us because it's so rational that you can detect the kind of problem with the tumor growth and block it directly. >> jim cramer joining us now what do you think is most interesting for investors about this loxo deal >> what i like about it is that this is targeted, this is the way of the future. this company is actually a device company what you think about it it finds early on where the tumor might be to the point where you can still address it before you get to a lot of a nastier level. and dave is a very forward

thinker. he would not have bought this if he didn't think five or six years from now would be the standard. >> also spoke with the ceo of bristol-myers. biggest health care deal, jim, i think ever but first listen to what bristol's ceo had to say about it. >> it's the right deal at the right time we are creating an extraordinary company with a focus on science and innovation three areas, oncology, autoimmune diseases, cardiovascular disease these are areas we know well we diversify our pipeline. we can launch six medicines in the next 24 months and we got 50 more medicines that we can accelerate this is a deal from day one. >> are investors coming around to this? they really punished on the day this was announced >> i think they are for a couple of reasons the first is, and geovany laid this out well. a very big drug and will come

off patent in the next years but what i liked about what he's doing is when i look at the company's valuation, celgene, it just ain't that bad. there's many other drugs they have this will be able to bring them out but because of the crash in biotech, that's why he moved this company was in the 90s just a few months ago now getting it for 100 and change he is being a really opportunistic. there's a lot of companies whose stocks have come down to the point where you have to buy them and i've got to tell you, those who bought celgene, they're going to do great. >> i want to ask you about the other story we're following today. tesla, shares surging at 4.5% and e llon musk some say that the timing is interesting giving the turn lower in the car market and the

trade tensions with china. you had some words with elon musk over twitter. >> i was asking about the trade tensions and whether, what he wants to do and he pointed out, look you have to build in china if you're going to do it. he's very confident. i would never, ever go against musk when it comes to his vision of what cars are going to be i think that elon, at times i don't like the valuation but he's a visionary he needed to do it in china. he's not thinking about the near term he's thinking about the long-term and i think it's a smart move. >> this is a battery factory, i guess a precursor to a full pledged auto production facility. >> exactly. >> but do you think as i look back last week and think of apple, that some of the reasons apple has been struggling in china have to do with the chinese feeling a little gun shy about embracing an american

product and could that, was that really your point in your discussion with musk >> yes, you put it like that because a false construct of there's no boycott of apple. it's not like that it's a conspicuous thing to buy an american product right now and i think in our country, if you hear that some companies buy and then sell chinese goods, maybe you think you shouldn't be buying it. apple is so universally recognized as american, even though so many are made in china, people just say, the party wishes that i didn't buy this that will clear up eventually but i think that hurt sales. >> i feel it too, jim. sort of the same way one way or another, to buy such a conspicuously iconic american product in china is probably something that if you were an ordinary skuconsumer, you'd thi twice about doing. i know you've been thinking more than twice i know what you were doing yesterday evening about 4:30 pacific time watching the eagles win.

the magic. here is panky double nick foles but i hate the rule that allows them to ice the kicker once the center's hand are on the ball. >> it's incredible coach peterson afterwards saying some people say it's a time-out in case he made the field goal it's kind of like in order to be able to show ads, that sort of thing. but it worked yesterday. so it so rarely works. i feel bad i met him when he was with the eagles, but in the end, that's a head case position and then that was tipped let's give the eagles some credit but what really won that game is the pass to golden tate on the fourth down he's magic and the eagles are magic and they're destined and people say, listen, they'll go

down to the super dome and get the butts kicked that's what we heard last year's too. this team is providence. >> you see people are venmoing the kicker money and it's a great thing about venmo. they don't even know, it's probably not the right guy so guys made fake accounts with his name on it hoping people will start sending them the dough >> so mice t that guy is not a head case. he won the game for them kickers are so important it is really amazing how they don't look the part. obviously, they're smaller than me some of them but they can determine >> what about the market on 700 point plus gain and then another update, does that give you encouragement? >> yes, look, we were down at the beginning and i have to tell you, i still think this market takes the cue from oil, as ridiculous as that is. i like the fact tech is up and

retail stocks are strong there was a feeling, i watched walmart and walmart made quite a move here. by the way, i think should not be under assault but we need to see retail up a bit, even if to say, the employment number is good and people are still spending but the fed should still wait i think their position is a winner >> thanks. see you. >> do not miss mr. kramer's big interview tonight with the ceos. a lot of health care tonight on cnbc in the meantime, up next, we're in our kickoff, kicking off our special week long series on "power lunch" called investing for a lifetime time. no matter your stage of life or the age you are, our experts will tell you what you should do with your money now and we'll start with jgenz z

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we kick off a special week long "power lunch" series called investing for a lifetime and each day, we'll take a look at a different age group and share investment tips from top financial planners today, we look at gen z, whoever they are, and millennials. i know who they are. >> the new millennials. >> the postmillennial millennials. sofia, thank you for being with us. >> thank you for i. >> when you're in our 20s and 30s, the biggest allies you have are time and the power of compounding. >> absolutely. it's so important to get started young. >> i once heard a statistic that if you're an individual at age 25 and you put money in a given rate of return 10,000 a year for ten years and never put another dollar in, at age 65, you would still have more money based on the power of compounding than

someone who began at age 35 and contributed that same 10,000 a year for 30 years. that's the power of compounding. right? >> so important. absolutely yeah, it's so important to get started early. >> give me your tips for someone in this gen y, gen z, millennial age group. starting early and dipping into that 401k or putting money into the 401(k) first >> yeah, it's really important to start saving for retirement with your first job. so the first time that you're offered that 401(k), sign upright away because that's the time, a lot of times, we don't have other obligations and it's also a great time to take advantage of any sort of company match that your employer provides so more often than not, employers are starting to match those 401(k) contributions sometimes it's dollar for dollar if you put in 4%, they'll match 4% other times, it's 50% on the

dollar, so if you put in 6%, they'll put in 3%. but regardless, that's free money and if you're not taking advantage of that full company match, you're leaving free money on the table >> right so try and put in up to the company match and beyond that. maybe, i've heard many times by increasing the amounts you put in by one percentage point a year for every year you'd be eligible to do that. let's move on to iras and 401(k)s. am i better off with a conventional one or a roth version? if a roth 401(k) is available, is that the better >> i think doing a little bit of both we don't know what tax rates will be in the future and it's important to have two different buckets of money to build up some roth money where you're paying taxes on that money now and it's growing tax-free but also some pre-tax dollars. getting the tax deduction in the current year and have the money grow tax deferred. i would say my preference is to have people at least get the company match in their current

401(k) and then if they can go above and beyond that, max out a roth ira more and more companies are also offering a roth 401(k) but it's important to note that the matching contributions from your employer will always go into the pre-tax account. so therefore, just by putting money into your 401(k), you're also getting that match that's building up that pre-tax bucket of money as well >> i assume you believe that these younger ages, individuals should emphasize stocks in these portfolios, not fixed income >> yeah, i think it's more important to save more aggressively and invest more aggressively while young because we have such a long time horizon. when we're looking out go ahead. >> i want to get this in because it's an important topic. a lot of people in this age group are carrying a lot of student debt should they invest first and then pay off the debt? their mindset were like, i need

to pay down this debt. i'll get to the investing later. what's your advice >> my advice is to at least take advantage of your company match and to start with something. it's really important, again, if you're giving up free money by not contributing to your 401(k), i think that's a huge problem because you can't go back years later and make up for that so even if your company doesn't offer any sort of company match, getting started small, even if it's just 1% or 2% while aggressively paying off your student loans, i think is really important because we're starting to build those healthy habilitates and then it's much easier just to slowly turn up the knob on the retirement plan contributions as your income increases. >> actively manage mutual funds or investing in index funds? >> i'm a huge fan of index funds. i think it's important to control what we can control which are keeping costs low. we don't know what the stock market will do but we have control over the expense ratios on the portfolios that we choose

to invest in, so i think that taking advantage of those index funds is a great way to keep your costs low and it usually helps with the overall rate of return when you're talking about these long time horizons >> you bet >> we just started doing the roth 401(k). i have to see if she's right about the company match. disney is raising ticket prices again charging customers what they're basically willing to pay, or could this move backfire we'll discuss that, right after this, on "power lunch. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

welcome back disney is raising prices at disneyland forever the second time in a year julia boorstin has the latest for us if. >> kelly, ahead of star wars land launching in the sum know, disneyland raised prices, effective yesterday, the least expensive daily ticket jumped above $100 for the first time, now $104 regular demand and peak demand days now cost 10% more, while the price for annual passes is up 8% since the prior price increase now this comes a year after disneyland and california adventure increased price s by a much as 18%. it comes as disney prepares for a surge of visitors for star

wars galaxy edge, a 14-acre $1 billion expansion of the park that includes two star wars themed rides bob eiger saying at the last earnings call, star wars land is the biggest things they've done at disneyland since the park opened in 1955 it will drive a huge increase in demand which will give disney "interesting challenges" to manage that demand last year's price hikes did not hurt the parks with visitor volume and spending increasing we have to see if consumers think star wars land merits higher prices. guys, back over to you >> how much people pay that full price, julia, or alternatively get some package where they get a discount >> here's the thing. you can get lower prices, if you're a california resident, and if you sign up for more parks, there's, of course, also california adventure or for days you get a discount per day if you pay for two or three days. i was just on the website, and they're marketing that three-day

ticket so you may get away with paying less, but that way, of course, disney gets you locked in to staying for more days, maybe even staying at one of their hotels over the course of that, so disney seems to know what they're doing here >> julia, this seems to raise this whole notion of entertainment that has pricing power. lot of people say people would pay more for netflix they're not going to say no to their kids at that point when they increase prices, but certain companies really have this pricing power and it seems like a the lo of the entertainment companies certainly do >> disney has the pricing power. it was an interesting move when disney made a switch to how they did pricing to make the prices more expensive on peak days. they want to make sure the park does not get too crowded and that's why it's going to be more expensive, if you want to go on a holiday or kids are out on vacation from disney's perspective, they want to make sure you're not waiting in lines forever and it's better for them to raise prices especially on those, in those peak times and have the park not be quite as packed.

i think it will be interesting to see what happens when disney introduces its streaming service. we'll see what kind of pricing power they have there as well. >> julia, thank you. julia boorstin "check please" is next (baby crying) ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin' gimme two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... is your part b medical expenses. this much - about 80 percent...

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interday charts of apple as well as google, they've been under pressure the entire session and sinking back toward session lows so it's something closely to watch as we go into the final hour >> we were speaking last week how fragile or vulnerable it is to be the world's most valuable company. apple falling from number one to number four. who is number one, amazon. often the stints at the top are rather or relatively brief i think amazon may defy that bill miller saying it could double within three years that would ensure a lengthy stay at the top of the world's most valuable companies >> and talk about the first $2 trillion companies at that point. it's jaw dropping. how about this, mastercard is dropping its name from the logo. the company says look, everybody recognizes what the logo means, it's the interlocking dots anyway but they want to rebrand as a technology company in the global payments industry if people know what it stands for, is it a re-branding does removing the name do that >> it's an optical test for

color blindness or something, i don't know >> what do you see there, what color's on the left? >> mars. >> i think taking away the word "card" is the important thing. what is the use of a card when you can use your phone thanks for watching "power lunch. >> "closing bell" starts right now. ♪ good afternoon welcome to "the closing bell." i'm wilfred frod frost. >> i'm sara eisen. apple, a lot to catch up on, and the markets, it's been volatile. the dow swinging more than 350 points in today's session alone. 254 was the high on the dow, now trading up 76, though we've been in red at multiple periods during the day as well >> we lost ground when the president said he'd make the prime time address and it continued to slip since