i certainly saw that when i was out in phoenix one of the other problems is just cities haven't invested in infrastructure that main makes t easy to get around >> laura kusisto with the "wall street journal" talking about the return of the exurbs i'll join melissa for "power lunch" which begins right now. i'll see you in just a moment, kelly. new at 2:00. president trump's economic adviser larry kudlow speaking this hour about the global economy. we will head live to dc for the latest. lyft sinking once again. shares below $70 well below the ipo price as well. is this a major warning sign for uber, pinterest and all the other unicorns coming public and the big apple riding a real estate losing streak that hasn't happened in three decades. we will explain. in the meantime, a check on walgreens this hour weighing on the dow inc. the company higher on its debut into the group of 30 "power lunch" starts right now ♪

>> we begin this hour with breaking news. president trump's top economic adviser larry kudlow speaking at the chamber of commerce in washington our sara eisen is there live sara >> reporter: hi, melissa just before kudlow took the stage, i did have a chance to catch up with him as he entered the chamber and got some news about how the white house is thinking about shutting down the border listen >> we're watching it and looking for ways to allow the freight passage. some people call it truck roads and there are ways you can do that, which would ameliorate th breakdown in supply chains the president's positions on border security are well known i support them fully the numbers, hundreds of thousands of immigrants every month. it's crazy the question is, can we deal with that and not have any

economic damage? i think the answer is we can and people are looking at different options, particularly,if you can keep those freight lanes, those truck lanes open i mean, that's probably the nub of it. >> what about the workers? hundreds of thousands of people coming over here legally to work and not to mention the tourists. >> yeah. well, that may be difficult. i don't want to comment on it because we're planning right now to try to, you know, what you want to do is stop the emergency and the breakdown and you want to try to limit whatever harm that does. it's a very difficult task i think it's doable. i don't know where the president will make a final decision on these things he hasn't yet. so we're looking at all those options. >> i imagine you've been in touch with business here at the chamber of commerce. they've been pretty outspoken about the need to reduce economic fallout around the issue. >> they're right

i agree with that. >> larry kudlow saying the white house and he in particular are looking at options to mitigate any economic fallout that would occur as a result of shutting down the u.s. mexican border first time he laid out specific plans about keeping freight lanes open or truck lanes open as to not disrupt the supply chains it's something we talked about earlier with the u.s. chamber of commerce president tom donahue who said that's a big concern here because if you shut down the border, what happens to the auto workers and the parts that come across the border every day in production? i mean, more than a billion dollars worth of goods is traded kudlow couldn't say anything about the workers that come across legally or the tourists that you just heard but did say they are looking at ways of containing the economic damage he also, guys, confirmed to me he is still pushing for steven moore to be nominated to the fed board. he supports him fully and he and the president are not worried about the allegations against

mr. moore including he did not pay child support for instance and the other sort of controversies that surround him. back to you guys. >> thank you very much, sar sa eisen. also this hour, president trump meeting with the secretary general of nato at the white house. eamon javers joins us now with more on that eamon? >> reporter: kelly, that's right. that meeting is going on right now inside the oval office the secretary general jen stoltenberg meeting with president trump about nato this has been a fraught relationship with nato, celebrating the 70th anniversary this year. the president has been very critical of nato allies not paying what the president views as their fair share in terms of an allocation of their defense spending based on their gdp. he feels all of those nato countries should be spending more on defense. he likes it when they up their defense spending but we have not seen all of the countries live up to what the president's expectations are, so you can

expect that topic will come up here in this meeting we'll see it on camera here momentarily and we'll also see the opening of a bilateral session between the president and the nato secretary general as well. so stand by for some presidential comments here at the white house on those topics. >> eamon i'm curious from your standpoint, does it sound like the white house is getting closer to shutting down the border i know earlier, sarah sanders mentioned they're studying the economic impact and that implies to me, it will be at least a couple of days if they're looking at the impact here. >> we need to highlight the importance of what larry kudlow just told sara eisen over at the chamber of commerce is that they're looking for ways to find a work-around for commerce to be able to continue, perhaps freight and rail coming into the country might be a workaround there. that's the first indication we have seen that this white house is looking for solutions that will appeal. alarmed about the economic

consequences here. larry kudlow clearly telegraphing there they're trying to find something that's going to work for the business community, the question is whether or not the president is serious about this or not. you don't get the sense there's a whole lot of planning going on for what would happen, this massive disruption of closing down the border that doesn't seem to be an enormous outreach to the business community other than larry kudlow's speech today. we don't see a lot of logistical work going on. we don't see a lot of messaging going on there seems to be a sense of sort of suspended animation here waiting for the president to make his decision. >> all right eamon, thank you eamon javers from the white house. to wall street now, investors seem to be bailing on lyft again the stock is now trading well below $70 a share below its $72 ipo price as well. it is also down about 25% from its peak when it began trading on friday. is this drop saying something about lyft specifically or maybe the ipo market overall cnbc's leslie. i'll kick it off with you.

when it comes to lyft specifically, what are you hearing from investors >> everybody is pointing to the volume right now trading so many shares i think last time i looked, about $16 million today alone. that's about half of what they issued in the equivalent it's impossible to know who's buying in, who's trading out i think what's important about the trading today is that $68 level. if you were called when they first went out and issued their price range to market the shares to investors, the first week of the road show, the hind of the range was $68 and that seems to be at least today the level that investors feel comfortable with because at least in the last hour or so, we're seeing people push the shares back up. they've recouped some of the losses they've had earlier today and i think that number is really interesting in terms of pricing from a comparable standpoint doing the math at that time. >> there was sort of this game theory going on that investors who got early allocations of lyft would have to quote unquote

behave with their shares, with their allocations in order to get slices of upcoming unicorns that will go public as well. where's that thinking at this point in terms of investors who got that early allocation, whether or not they would have sold >> that's a big part of the gamesmanship surrounding ipo allocations. take j.p. morgan, for example. they underwrote both lyft and underwriting pinterest which is coming up in the next few weeks. if you're a big client of j.p. morgan and got a huge allocation of lyft ipo and j.p. morgan found out about it, they may not be as inclined in the pinterest ipo. you weren't a long-term shareholder, which as an underwriter, you believe is in the best interest of the issuer, to have those long-term shareholders. >> we have a big ipo pipeline and the most prolific one struggling is that going to have an impact? >> yeah. i think at the very least, there is an indication that this

particular stock was overpriced. it clearly had a pop initially but after the first few minutes in that pop, it suddenly started acting like a momentum stock when that started going south, the volume picked up and people essentially dumped it. there was no syndicate support at $72 that was very surprising normally, they make an effort. they didn't even seem to try to prevent the stock from dropping. i think what this says here is that at the very least, the company like pinterest coming next time, they're going to be very careful about pricing this. and this is good for the buyers of this stuff and that's what we care about who's going to be buying it all. one thing about leslie's point about maybe people are afraid to do anything on friday because they were not going to get allocations, there may be some truth to that but remember, there's over 200 ipos coming down the road. there's going to be an awful lot of ipo money out on the street in the next few months and maybe people weren't as afraid of selling their allocations as some people thought. i can go both sides on that particular argument, guys.

>> bob, what does this say about maybe rationality returning to the markets when it comes to pricing these things there was a pop on the first day and then it tapered off. maybe the next ipo to go public won't reach for that, the upward bound of the raise range >> so simple way to look at this is $15 billion the last round evaluation for lyft, went to 23, 50% pop over the last round of funding. that's an awful big stretch there. it didn't change that much, the fundamentals in a few months so uber, $78 billion last round of funding. now talk of over $120 billion. they're too talking about 50%. i doubt that will happen pinterest, $12 billion with the last round of funding. not going for $18 billion. this is going to introduce a note of sobriety in it and remember, the people who buy this stuff might be able to get the prices lower and that's what you want it's buy low, sell high, right >> it's a good thing in the long

run. bob, thank you leslie, thank you as well. stocks pulling back today after getting off to a strong start in q2 yesterday. we're only about 2.5% away from historic highs what will it take for us to get there? art hogan with national securities victoria fernandez welcome to you both. art, i want to start in a different place because of the news this afternoon about the border look, it would be a disruption, of course, to cross border activity not necessarily talking about a huge economic hit or are we? is there anything for the markets to worry about if this continues and it looks like some kind of shutdown might happen? >> yeah, i would if you extrapolate that out as saying, listen, our ability to get a trade deal done with china is usually a template we did with nafta 2.0 and obviously that hasn't been ratified yet and the more disruptive with mexico, the less likely we'll be able to get

that done. when you think about trade in general, being quite important to the market and economy, if this is something to disrupt that process and we're just not that good at doing trade deals, then absolutely, we'd see a market impact immediately. in terms of the sense, probably not in the near term but for sure, anything that disrupts getting trade deals down disruptive >> the nasdaq is positive even while dow and s&p slightly lower. where would you be in this market >> we definitely think there's some positive momentum going forward and we think that there's strong enough fundamentals to probably help us meet new highs this year don't think it's a straight line hire but think we'll get there eventually the consumer still giving you a strong foundation. got the advanced bullish signal. pes, you have room to run there. it's interesting normally 0 to 2%, you can get pe 18 times we're at 16.5 so there's room there. the patient fed and earnings

coming up next week, so there's a lot of stuff that's building there. you know, it's interesting in the middle of earnings last quarter, tyler actually asked me, are earnings being okay? is that going to be good enough for the market i think we're back to that question again that expectations are lowered enough people expecting negative earnings and a possible earnings recession this quarter, we may have a little surprise there. >> art, how would you characterize your positioning? you like health care you like industrials non-social media technology. is this sort of middle of the road growth but not momentum sort of posturing? >> yeah, it is that's more tactical that shift comes into play when you think about the first quarter of this year especially the month of march. we've really sought a rush of momentum with technology names and a rush to the defensive. those are names we think both have gotten expansion. when you think about defense throwing off the yield less than

3%, that's been a very popular trade. the trade makes sense in a low yield environment. it's gotten expansive. we feel like we're at a pivot point. i think broadening out happens in health care and traditional technology and i think industrials here. >> you sound bullish, victoria what are you looking at on the horizon to derail your bull thesis >> art was mentioning the u.s. china trade deal a huge component going forward. so if that does not come through the way people expect it to, where we have some not just agricultural purchases but we've actually got some movement on ip, on industrial policy, if we don't get that, i think we have a pullback we have brexit in the air as well but that won't be as big of a factor, i think, as the u.s. china trade deal and obviously now we're talking about mexico anything that disrupts the goods going back and forth in the supply chains there. you have some things in the air that can really put or be a head wind for the market going

forward. global growth an issue but hopefully some of the numbers we saw with china and the uk show that we're bottoming there a little bit >> the uk pmi, what was it, 53 victoria, 54 i don't know, it was a shockingly high given all the disruption over there. >> yeah, it was. >> appreciate it very much new jersey congressman getting salty today when discussing the state and local ylan mui with that story >> reporter: a huge outcry from high tax states over the new limits on the state and local tax deductions, what is known as salt and congressman bill pascral channelled that in the debate today. >> so critical of restoring the the salt deduction they were silent dropped the tax rate to 37%. double the estate tax threshold,

so airs the top 1% could inherit $20 million before paying a single dime in taxes on their wealth i think that's hypocrisy filled with contradictions. >> reporter: pascrell has a bill that would restore the higher tax rate on the wealthiest earners. there's a working group considering that idea as well as a whole host of others they're scheduled to start the meeting tomorrow. >> yelan, thank you. walgreens down after a big profit warning today that stock accounting for nearly all the dow's losses in the meantime, elsewhere in that index, disney holding steady down fractionally hear from analysts who's bullish on the stock with a 34% upside oil given up much of that this year a 5 month high 'll have the closing trades on

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real bullish on disney plus prospects. it is a prebuilt fan base. 50 million households, an estimation we get to by looking at ticket sales really across all the main content characters we'll see on the disney plus offering we assume a small percentage of that 50 million, roughly 15% penetration that gets roughly 30% that gets us to roughly $15 million disney plus subscribers by 2021. >> what are the cost assumptions to how much disney will charge these 15 million subscribers by 2021 and how much disney will actually spend you estimate they could spend $20 million annually on content alone. >> that's right. so the assumptions we have and we'll get more color on this

with the analyst data on april 11th, but the assumptions we're making $6.99 subscription cost. i think there's going to be interesting things in terms of funneling that with hulu, as you know, they have a majority owned stake now, but those are the assumptions in terms of pricing. on the cost side, you know, we're looking at roughly $1.4 billion in terms of investment in the dc initiative >> do you expect people will have subscriptions to multiple >> that's a really interesting question i think the tway we look at it, there's plenty of room right now for good quality content and, you know, we put a few companies in that bucket obviously, disney plus will be there given just a big fan base and very good content. netflix is obviously there hbo. and a few others

i think what you'll see is not necessarily people leaving sort of netflix or leaving sort of other apps, if you will, to disney plus but more just bundling, if you will, a group of high quality content apps that are dtc driven. the names i mentioned, the hulus, disney plus, netflix, hbo, i think, you know, those are, that's what makes this space sort of interesting to us right now. we're starting to now see some really solid content that's going to actually be able to stand on its own. >> how do you think about the total will address the market, and this question will sound almost bizarre but making an assumption on the number of household, sort of the fan base of disney right now, how does that fan base change over time and are you thinking about households with children and over time in the next ten years, the number of children per household, do they increase? i'm just thinking because disney's offerings are much more specific than a netflix or hulu

in terms of the total market. >> i think that's our starting point for today. i think it's, for us, it's sort of the immediate, the demand you have for this app. but looking longer term, our assumptions are looking at a much broader tv household market and i think disney can certainly penetrate that market, like what netflix penetrated 60% of the u.s., i think, really comfortable target that we could see disney plus reaching in sort of the 2025 time frame but that's our assumptions right now. the reason we look at sort of that fan base today, i think it's sort of that immediate lift that i think will get people excited in the disney plus offering. >> mark, interesting thank you. walgreens worst day down

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lunch. i'm michael santoli at the new york stock exchange. walgreens plummeting today in the worst performance in nearly five years following a disappointing quarter and downbeat guidance. cementing status as the worst index performer by a while now down 19% for the year. is there anything to like here matt maley, your "trading nation" team today matt, you describe walgreens as a broken stock how so and what would it take to fix itself >> well, it's just broken down at too many support levels the last couple of months, lower highs and lower lows broken below the multiyear trend line going back to 2012 and also broken below its lows from both 2018 and 2014. however, on a near term basis, if you look at the weekly rsi, very oversold.

so much so that it is at levels with usually decent sized bounces. i wouldn't want to short the stock or sell the stock but the high risk tolerance, might want to buy here for a flip over the next couple of weeks but with it broken so many key support levels over the last couple of weeks, i think this is going to be kind of dead money for long-term investors. >> erin, i guess if somebody already owned walgreens and you have a lot of hope wrung out of the stock, and kind of inexpensive, what might you do with it now? >> it is very challenging. it's definitely facing tougher competition from the likes of cvs and amazon with subscriptions. i think one thing is it has phenomenal cash flow it can weather the storms, it can weather a few quarters of turning around this is once again a turn around story. entered into a dozen online partnerships to really ramp up their online sales so we're looking for that increased growth but it's probably not going to be for

another 4 or 5 five quarters the other good thing, super cheap. valuations just bounced off of that 9% forward earnings it never breaks below that point. so we see this as a relatively -- >> erin, sorry to interrupt. we want to break through we want to tape playback of the president meeting with the nato secretary general right now. >> you know when i came, it wasn't so good, and now they're catching up. we have 7 of the 28 countries are currently current and the rest are trying to catch up and they will catch up and some of them have no problems because they haven't been paying it. they're very rich. we're looking at the 2% of gdp level and at some point, i think it's going to have to go higher. it should probably be higher but we're a level of 7 out of the 28 the united states pays for a very big share of nato, a disproportionate share but the relationship with nato has been

very good. the relationship with the secretary general has been outstanding. and i think tremendous progress has been made. if you look, in fact, you showed me this originally yourself, if you look at the charts and the different things, you go back 10 and 15 years, it's a roller coaster ride down in terms of payment. and since i came to office, it's a rocket ship up we've picked up over $140 billion of additional money and we look like we're going to have at least $100 billion more in spending by the nations, the 28 nations. we're going to have, and that's exclusive of the united states, we're going to have another $100 billion more by 2020 or a little bit into 2020. so tremendous progress has been made and nato is much stronger because of that progress and mr. secretary general, it's a great honor to have you with us at the white house. thank you. >> thank you very much, mr.

president. and once again, thank you for hosting me once again in the white house and it's great to be back great to see you and thank you for your strong commitment to nato, to our alliance. the transatlantic bond and especially for your strong leadership because as you just mentioned, investing more by the end of next year, adding $100 billion more into the defense budgets and that helps and it proves also that natoalle we have increased forces and stepped up in our joint fight against terrorism. and we are investing more. so, actually, in north america and the united states and europe, we are doing more together now than we've done for many years and that shows the

strength we're celebrating the 70th anniversary of nato. it's great to see you. had a photo meeting and thank you for your support >> well, thank you, and it has been an honor. we're very proud of what's happened over the last couple of years with respect to the relationship and to nato a lot of the media doesn't understand what took place, but a tremendous amount of additional money was invested by other nations, which was from our standpoint, the standpoint of the united states and a lot more money will be invested, but we've been picking up a tremendous and disproportionate share and we just want fairness. i have to have fairness for our taxpayer too and i think that's what's happening and i very much appreciate it. thank you very much. >> thank you all very much >> mr. president, is it your intention, sir, to close the border this weekend? what would it take to not close the border >> i haven't made my intention

i'm ready to close it. mexico, as of yesterday, has been starting to apprehend a lot of people at their southern border coming in from honduras and guatemala and el salvador and they've, they're really apprehending thousands of people and it's the first time really in decades this has taken place and this should have taken place a long time ago. you know, mexico has the strongest immigration laws in the world. nobody stronger and the same, but you can't get stronger than what mexico has and we don't want people coming up, making that very dangerous journey and coming in. our system is absolutely maxed out and border patrol has done an incredible job but the system is absolutely maxed out, and it's a very unfair thing so mexico has, as of yesterday, made a big difference. you'll see that because few people, if any, are coming up and they say they're going to stop them. let's see, they have the power

to stop them they have the laws to stop them. and what we have to do is congress has to meet quickly and make a deal. i could do it in 45 minutes. we need to get rid of chain migration. we need to get rid of catch and release. and visa lottery and we have to do something about asylum and to be honest with you, we have to get rid of judges. every time, and you won't even believe this, mr. secretary general, you catch somebody that's coming illegally into your country, and they bring them to a court. we can't bring them to a court because you could never have that many judges they take their naime, and release them it's called catch and keep we don't have facilities for that, but you have to bring them to a court system and they touch your land, one foot on your land, welcome, now you have a big trial. so what they've done over the years is they release them into

the united states and they said, come back in four years for a trial, and nobody comes back i guess 1%, 1% to 2% come back and nobody can understand why they come back they're the only ones that come back it is the worst, dumbest immigration system in the world. the the democrats could change it with one meeting. everybody would agree, but they don't want to change it because they don't want to give the republicans a victory. they don't want to change it because they want open borders, which means crime, and lots of other things coming in including drugs, so we'll see what happens. i think the democrats today, i spoke to a couple of them and all of the sudden, they're changing because they're seeing it really is a crisis. it is a national emergency on the border and let's see if they can do it, but i want to thank, it's a very short period of time because for years, this should have been done but mexico is now stopping people coming, very easy for them to do, stopping people

coming in to mexico. let's see if they keep doing that now, if they don't or if we don't make with congress, the border is going to be closed 100% and this should have been done by other presidents. so many things should have been done by other presidents, but if we don't make a deal with congress, or if mexico and probably even say adnor, they shouldn't have people coming into the country this is their southern border that they have to protect. then we'll close the border, that's going to be it or close large sections of the border maybe not all of it. but it's the only way we're getting a response and i'm totally ready to do it and i will say this. many people want me to do it because we're being abused by a bad legal system that was put in by democrats and that has to be changed. and it can be changed in 45

minutes, if they want to change it let's see what they do yes? >> on the u.s. economy by closing the boarder? >> sure, it's going to have a negative impact on the economy it's one of the biggest trade deals in the world we've just done with the usmca it's a very big trading partner. but to me, trading is very important, the borders are very important, but security is what is most important. we have to have security this is what this gentleman is all about, to my right and we're going to have security in this country. that's more important than trade. hey, all you hear me talking about is trade but let me just give you a little secret. security is more important to me than trade so we're going to have a strong border, we're going to have a closed border. when we close that border, we will stop hundreds of millions of dollars of drugs from coming in because tremendous amounts of

drugs come through our southern border and so that's one of the benefits i'm totally prepared to do it. we're going to see what happens over the next few days >> doing enough from closing the border all the apprehensions? >> they've made a big step over the last few days. they're apprehending people. you see how many there are there's a lot of people. and the fact that they're doing that means fewer people are going to come, but, you know, we pay hundreds of millions of dollars to honduras and guatemala and el salvador as a combination and what do they do? they don't do anything for us. it's supposed to be money well spent. i understand the reason for it but the money doesn't get there. we're giving hundreds of millions of dollars to these three countries and the money is not going to where it's supposed to be going, number one, number two, they're taking advantage of the united states and they have been for many years. so i cut off the payments

yesterday. i know what the payments are supposed to be for they're supposed to be to help, so that they don't have this problem, but they don't do that. the money is gone. it's not spent properly. and they arrange, i mean, the thing that bothers me more than anything, they arrange these caravans and they don't put the best people in the caravans. people you don't want to have in the united states and we're not going to have them in the united states it's very simple it's very, very simple >> are you happy with the stock markets? >> say snit. >> i think he's been a terrific leader during my time, 2.5 years, but we've got along really well and the first statement, the first meeting and then i think i got them to put up the other countries. with respect, 21 countries to put up the other 27. $64 billion.

64 billion that's a lot of money. and he went out and said, what a great job he did a lot of people don't like giving credit. the media never gives me credit but he gave me credit. now we're up to way over $100 billion and it's going to be a lot higher than that by the end of 2020. but i appreciate the job he's done he's done an excellent job and when it came time to renew, because a lot of people wanted that job, it's a great job but a lot of people wanted it, but i had no doubt in my mind who i wanted >> u.s. out on nato? >> people are paying and i'm very happy with the fact they're paying yeah >> what kind of security threat do you think russia poses to nato >> i hope that it's not going to be a security threat i hope we have a good relationship with russia and with, by the way, china and everybody else but i think the fact that we have nato and nato is a lot

stronger since i've been president, would you say that's correct? a lot more money >> investing more. capabilities we need to maintain for all nato countries. >> but i think we'll get along with russia. i do believe that. >> why push the vote >> because i think we'll have a great health care package. i think the republican party will become the party of health care i see what the democrats are doing. it's a disaster what they're planning and everyone knows it you're going to lose 180 million people under private insurance, and i think really very important, obamacare has been such a catastrophe because it's far too expensive. of course, the people, so much, they can't afford it and of course, premiums are very high $7,000 to 8$8,000 on average. obamacare has been bad

if we get back the house and the assumption we keep the senate and the presidency, which i hope are two good assumptions, we'll have a phenomenal health care. i want to put it after the election because we don't have the house, so even though the health care is good, really good, it's much better than, when the plan comes out we'll show you at the appropriate time, it's much better than obamacare, so when the plan comes out, you'll see it it's possible the democrats would want to do it. i mean, it's much better for the people, but i'm assuming they won't because the democrats never do anything that necessarily is going to be anything other than political. so what happens is we'll go through the election we have a very good chance of retaking the house, and we have a very good chance of keeping the senate and i think we will keep the senate and i think we're going to keep the presidency and we'll vote in the best health care package we've

ever had >> nato has accomplished in seven years? >> a lot of things but for strength and we have a great leader i always talk about germany. germany, honestly, not paying for their fair share i have great respect for angela. my father was german and born in a very wonderful place in germany. so a great feeling for germany but they're not paying what they should be paying they're paying close to 1% and they're supposed to be paying 2% the united states over the years, got to a point where it's paying 4.3%, which is very unfair and the u.s. gdp especially under me because the gdp has gone up so much, because it's 4.3 of a much larger gdp so we're paying for a big

proportion of nato which basically is protecting europe so we're protecting europe at the same time, they've taken advantage of us, so the best of all worlds we're protecting countries that have taken advantage of the united states. but it's all changing. it will take a little while, but it's all changing. >> there's going to be a vote in the house judiciary committee. whether or not to authorize the unredacted version of the mueller report and the background materials that they do vote out the authority for subpoenas. >> well, i think it's ridiculous we went through two years of the mueller investigation. we have, i mean, not only that, you read the wording it was proven, who could go through that and get wording where it was no collusion, no nothing? so there's no collusion. the attorney general now and the deputy attorney general ruled no obstruction. they said no obstruction

and so there's no collusion, there's no cobstruction? i think it's a disgrace. >> president trump at the white house with nato secretary general. the president addressing the southern border saying he is ready to shut it down if he needs to we also heard from larry kudlow on the same issue at the top of the hour let's bring in eamon javers. eamon, to pick out some of the highlights of what we just heard from the president but also to explain how we went from talking about the need to build more border wall to deal with the issue of illegal immigration from talking about shutting down the viable crossing points which are an avenue where we do so much commerce? >> what the white house said on that, ultimately, the crossing points are now overwhelmed with people trying to get into the country and they simply can't handle or process the thousands and thousands of people who are showing up at the border crossing points so that's why the president has the idea of shutting down the border but if you try to read the tea leaves and figure out whether the president is actually going to

shut down the border this week as he's suggested he might, there's some tea leaves on both sides of the scale here to mix my metaphors on the one hand, the president there was praising mexico and its law enforcement for apprehending illegal mai granig towards the united states and mexico is doing what he wants mexico to do and maybe less likely to shut down the border on the other hand, the trade impacts of this but saying security is more important than trade and if they don't do what i want them to do, i'll 100% shut down the border the president saying i'm prepared to do it and a lot of people want me to do it and then the third question is, what is the president talking about here ultimately in any case is he talking about a complete border shutdown or a hybrid like larry was discussing, like some border crossings of personnel are shut down? he could just shut down parts of the border, not the entire border so there's a lot of options on the table. the president has sort of spun this wheel of border shutdown

and not clear where he'll land on it. >> while we were listening to the tape playback, we did get a headline from republican leader mcconnell saying that the shutting down the border with mexico could have a catastrophic impact on the u.s. economy and the other tea leaf, if we're tozito tossing tea leaves and mixing metaphors, larry kudlow's interesting call to cut the the basis points for the economy you've got to wonder if the administration is thinking forward, other border shutdowns, things of that ature the impact those measures could have on the u.s. economy and their desire to keep the the economy going ahead of the elections. >> you just don't get the sense there's a holistic approach. these are on different political tracks the fed track is one in the president's mind thinks interest rates are too high wants them lower you saw that message delivered publicly and then the immigration track, the political track of the president focused on his base

heading into the reelection talking about shutting down the border he, in that context, doesn't view the economy as the most important factor he views security, as you just heard him say. the fed aspect, views the economy and continued performance of the dow as a very important barometer going forward, perhaps the most important rather than some of the issues that the fed has considered about powder dry for future recession those are very different tracks in this white house even though you see the same, larry kudlow on both tracks. >> eamon javers at the white house. charles, a senior fellow at the counsel on foreign relations you're a nato expert that is where we saw the president start. he has expressed dissatisfaction with nato over the last year it was interesting to see not only at the white house but speaking to congress this week putting that aside for a moment, i want to ask you about closing the border i think the more the president threatens to do this, the more

anyone who's trying to make their way up towards the u.s. border is going to try to come here as quickly as possible. in other words, it's the same thing we saw with gun sales, frankly, during the obama administration the threat that that might be banned is what drives the activity is that likely to drive even more activity? >> it could, because people could say, this is my last chance but it sounded to me from the clip you just played that the president is using the threat to close the border for political leverage political leverage with mexico to get them to stop the flow of people to the north and political leverage with congress to get them to pass some legislation to get purchase on a problem still out of control the president is now heading into the election season democrats are declaring their intention to run almost every day, one of the main things he hasn't delivered on, is getting control of the immigration problem. so i think given that we're

seeing this huge surge over the last few weeks, he's feeling a lot of political heat to do something. >> what sort of example or lesson is there from what happened with europe that saw large scale migration over the last couple of years in a way they're still grappling migration the last couple of years that they're still grappling with, does that have anything to teach the u.s. >> the europeans got real in the sense that they cut a deal with turkey and libya to stop the flow they knew that if they didn't, the political repercussions would be terrible, the populous would take over europe the u.s., to some extent, already played hard ball on some issues but the southern border has remained porous. the president is right, that we don't have a good immigration policy to the south. but his solution, closing the door to trade, a huge hit on the american economy, that's not the

solution the solution is to get congress to sit back and come up with a soup to nuts immigration bill. that hasn't happened for decades. we'll see if this is the moment they can actually pull it off. >> getting to your expertise, charles, that would be nato. president trump seemed to be playing good cop, bad cop, singling germany out, saying he has a great relationship with angela merkel, respects her as a leader but that germany simply does not pay enough tore defense. with brexit happening and the downturn of the european economies? >> for those of us who are supporters of the atlantic alliance, and i count myself in those ranks, we're all breathing a sigh of relief because it was a good meeting and he said good things about nato. what's happening here is that the president is claiming victory. he has put pressure on european allies to spend more they're doing it he is going to back away from

insulting allies and talk about pulling out of nato. that's good news the bad news is that the germans are still coming in low. they originally said 1.5% of gdp. now they're not even going to meet that. i think trump was pretty gracious he didn't go after the germans on this front but we still have a lot of work to do in getting germany to spend and do more germany is, after all, the largest economy in europe. if they increase their defense spending, it will have a big impact but, overall, i would say this is a good day for nato and the president seems to have backed off being a bully when it comes to the atlantic alliance. >> charles, thank you so much for your expertise today appreciate it. >> my pleasure check out this mystery chart. this is amazing. shares of this pharma stock up 55% ye to ardate we have the ceo on, next ♪

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just over an hour until the closing bell with the dow off the lows, just a third of a percent, walgreens still remains the major drag

session is now up 16 points. time to reveal our mystery chart. it is reataph pharma. working on a drug that's shown the ability to reverse kidney damage, with 88% of patients finishing with improved kidney function join i joining to tell us more about this, reata chairman, ceo and president. welcome to the show. >> thanks for having me. >> this drug works on chronic kidney disease how many americans have chronic kidney disease and what is it caused by? >> it's a big problem, about 50% of the united states population. it's initiated by a lot of different things, diabetes, genetic defects, auto immune disease. the federal government spends about 2.6% of the entire federal budget -- not the health care budget, the federal budget on

patients with ckd. >> this drug is an orphan drug is it the kidney disease that you might get if you have diabetes as well as heart disease or is it more specialized? >> it actually -- we've shown that it's active in six different forms, five different rare forms of kidney disease our partner is conducting a large study in diabetic study in japan. we believe it has promise there as well. >> not only these five rare forms but much broader -- >> correct. >> -- more commonly diagnosed kidney disease >> we've been pursuing the rare and most severe forms of the disease. >> how much does this cost >> the drug? >> the drug, treatment. >> our drug is investigational it's not approved at this point. we'll have pivotal information the second half of this year and if that data is positive, we'll be seeking market approval with a launch after that. >> specifically for these five

rare forms of kidney disease, what is the total addressable market >> about 700,000 patients in the united states. even though each one is relatively small it's a large population. >> in a cardinal trial, you actually reversed two years of kidney decline these are dramatic results. >> this is the remarkable effect this is the first drug to treat the inflammatory basis of the disease. and patients that were treated for a year on our drug had a recovery of more than two years of kidney function, patients that were chronically declining for years before coming into the study. even more remarkably when we remove the drug they retain a strong portion of that that shows that the drug is helping the kidney instruct to improve, very strong evidence that it will delay dialysis or kidney transplant and, by the way, that's the approval end point for the drug. >> your company started with a portfolio of various treatments, in the investigational phase.

>> yeah. >> that goes to say that you have a pipeline. this is not the only drug you're working on you've got others. >> that's right. in addition to the ckd opportunities, we have a pivltal study in a terrible muscular disease called frederick's ataxia and a terrible cardiopulmonary disease, connective tissue disease phh. >> to come back to the first drug you talked about, if it comes to market -- i'm also curious why no one else is able to come with this -- do you have a ballpark sense of cost >> the study is designed to determine whether the drug would prevent dialysis or transplant if it's positive, it would be disease-modifying therapy for a rare orphan disease and we've priced accordingly obviously, these are very expensive conditions to treat, you know maintaining people on dialysis or transplant. >> absolutely. >> warren, thank you for joining us. >> thank you. >> warren huff, ceo of reata

pharmaceuticals. we were talking about closing the border wall. ksu, kansas city southern, 30% of revenues come from mexico border crossings the stock is up. >> shrugging it off. >> you know what that is that's your check, please. >> that's my check, please. >> "closing bell" starts right now. >> it's the final hour of trade, rising demand to push lyft whether it can turn around in the final minutes. and u.s./china trade talks expected to take center stage tomorrow kevin rudd is here to tell us what to expect also gamestop about to report earnings. we'll give you those numbers as soon as they break "closing bell" begins right now.