t better but increasingly becoming an important part of wework's story. >> explains why in london. longer term office contracts there. places like china, maybe not so much deirdre, thank you deirdre bosa following the listing for us that does it for "the exchange." that's it for me joining "power lunch" with tyler and melissa which begins right now. >> it sure does. new this day at 2:00, apple earnings rallying more than 40% from its low in january. we'll tell you three big things investors like you need to watch on this stock. plus, warren buffett making a $10 billion bet on the takeover battle in big oil. what's fueling it and should you follow buffet's moves here and taking on the valley in tech from miami, mr. 305. mr. worldwide pit bull joins us live and stocks under pressure this hour but the dow well off the triple digit lows as you see

there. "power lunch" starts right now >> thank you,ty. hi, everybody. the countdown to apple is on the tech giant reporting after the bell today 2.5 hours time the stock taking a hit ahead of the numbers but it's been on a big run so far this year josh lipton in kup tee know with more on what investors need to know ahead of these numbers. josh >> reporter: so kelly, apple's stock is under pressure in today's trade but as you mentioned, it's been just a tear up more than 40%, investors make a b line for iphone revenue. bogey $30 billion and drop of 18% year over year tim cook has called out the challenges they see there including china but some analysts including the team at morgan stanley see signs of some

stabilization there but as the iphone is under pressure, a lot more focus on that services segment. faster grown, higher margin, that's the app store, apple music, though some analysts have questioned the segment's growth trajectory, even seeing some pretty significant decline in the quarters ahead given how reliant it is, they say, on licensing revenue from google and apple care that's why bernstein's tony saganaki, 12% in q3. on the other hand, sakanagi thinks they'll raise the buyback and increase the dividend by 10% and 20%. guys, back to you. >> thank you very much and let's drill down more. that was josh, of course, on apple and to do that, bring in a pair of steves steve milanovic.

and cnbc's steve kobach. you seem lukewarm on this stock. 201 now and your price target is 185. what are you expecting in the afternoon a short-term >> it's up 40% off the lows but not back near the highs and thinks it will have upside resistance what i would watch for is china. we want to see how much that bounces back after the mess last quarter. they've cut prices there how much impact do they have in terms of market share gain services, we're looking for 17% growth and the app store looks like it slowed to 15% last quarter. so we're watching for that and finally, capital return. we're looking for about a 10% to 12% dividend hike and then buyback, so it's a capital return story which we don't think is enough to get the stock higher from here. >> steve, kobach, the stock has come back a good bit from that point, not as much as the highs

as steve mulonvich pointed out but what's going to happen with this tv service and what are they going to charge for snit. >> that's the fascinating that's happened with apple. they announced all these services but didn't give a price for them we don't know how much that tv service is going to cost we don't know how much the video gaming service is going to cost. and people are still betting that they're going to be able to squeeze just a ribt,little bit, billion iphones on the planet and investors are betting right now. they're going to be able to squeeze more cash out of each one of those >> one of the things steve mulonvich that leaps out at me is the slowing rate at which people are replacing their phones >> absolutely. and although some analysts are arguing we're at the limit of that, nearing 4 years, i don't think we're quite there yet. we have some survey data to suggest the people who bought an iphone this last quarter held previous phone, 26% held their previous phone for over 3 years.

that compares to 16% a year ago. so if you're spending a thousand dollars on a phone, you're probably going to hold that phone for 3.5 years. i don't think we're quite at the limit yet and that reduces your iphone shipments. >> you mentioned app store might be decelerating and josh lipton also said people are looking for the services business to decelerate for the next couple of quarters. why would that be? >> the app store is the biggest part and on the last call, ibm said the biggest part of the services business is less than 30% and if you do the numbers, we think that means the app store slowed to 15% or 16% growth a lot of that is gaining in china. we expect more as more games are approved but media helps as we add that later this year but while i don't see a deceleration to 12%, i think you'll see some pressure on that number. some people are worried that the netflix and others are going around apple i'm not overly concerned about that at this time, but i do think we'll see numbers in the mid to upper teens

>> just mentioned gaming i thought that was really important. this arcade service, all the details with the launch and the pricing of it, it sounds super compelling apple is wrapping up tons of deals exclusively on the iphone only so that means they'll be able to have the exclusive titles, $10 or whatever it might be a month >> but a little bit of a tesla thing. don't look at our slowing sales now. look at the new stuff we have coming. >> exactly yes, that is a problem for them too. the app store is slowing so they're really trying, so if you go in the app store today, kelly, you'll see they have a subscription section specifically for it saying subscribe to the favorite apps that's recurring revenue in the app and really tweak that and gain revenue inside the app store still. >> thank you very much mr. mulonvich. kovach >> we've got more later too. it's the busiest week of earnings season now at the halfway mark where do things stand?

bob pisani now from the nyse bob? >> reporter: the good news, it looks like we're avoiding an earnings recession 261 companies reporting in the s&p 500, that's halfway. earnings up 0.7% that's on a blended rate that's a big change from a few months ago it all went negative in january. first cut estimates back in december on fears of a global slowdown but by the early part of april, earnings expected to fall 2.5% for the first quarter but then a funny thing happened we saw all the early reporters, adobe, nike, started reporting much better than expected earnings and most of the companies followed what changed the global growth narrative changed. mostly to central banks. china and europe started to show signs of stability and that's why companies are beating estimates by far greater amounts than normal. look at these numbers. average earnings surprises are

6.9% above consensus twice the normal beat. usually you beat it by 3% or 4%. the bottom line is a lot of things now are going to have to go right in the global economy to justify these prices. guys, there's very little room for error. the stock market is pricey at these earnings multiples low to mid single digits for the year back to you. >> thank you, sir. in the meantime, the takeover battle for anadarko petroleum. warren buffett is jumping in berkshire hathaway investing in occidental but the preferred stock is contingent on completing the takeover of anadarko going head to head for control of the company making an offer recently that topped chevron's bid. brian sullivan and wolf research i'll begin with you. you have an outperform on both occi and anadarko. do you like it here at the price of the 8% preferred? >> good afternoon. we do like his involvement, not

only for occi but the sector as a whole because we think it's an undervalued group and make a good investment here in the sector as a whole but we like his involvement. he's obviously very good value investor, good investor overall. and he gets a nice 8% coupon with warrannings attached to it >> is it too good? people say wait a minute, warren is so savvy, if he's on the other side of the deal, you want to be on his side. >> that's true we definitely have heard some of that feedback this morning for sure but i do think that this provides confidence in their ability to execute on this transaction and the synergies they provided. >> brian, we talked about this last hour a little bit but as this plays out, people say now you've got the warren buffett fire power and in a way, brand behind this. it's not exactly a hostile bid because anadarko is open to hearing more about it but the balance sheet concerns that investors had about occidental completing this deal is odd

because now in part they go away but in part, they're worse, right? >> yeah. 8% dividend over ten years time. $100 million a big deal, 100,000 preferred shares but to jason's point when you have the world's most famous investor coming to the energy sector he said, by the way, years ago, he was getting out of and he had no interest in investing oil and gas. now making a big deal. maybe it is a steep price to pay for occidental but hasn't done anything yet here's the key to remember once the anadarko board formally enters talk with occidental, chevron has four days to respond. now, i don't know if anadarko's response is considered a formal discussion in talks so i don't know if the four-day period has kicked in yet but i know from sources inside of chevron, there are people talking with that window to come in. so buffet hasn't paid anything yet until that occidental anadarko deal closings and chevron as the stock draft would

say is on the clock. >> josh, what does buffet's interest in this deal, in this company basically presumably, a potentially merged company, what does it do for the other players in the permian and the shale area i think it levers up their values >> yeah, we would certainly think so as well this sector has been, you know, overlooked for the last few years and even with everything that's positive going on for it right now with what we see as a really attractive valuation where the sector is trading half the market multiple, the producers are generating positive free cap flow at $60 an oil, the biggest merger in the space and the stocks aren't really reacting to it. so we think this should lift valuations for the company particularly on the permian basin where occi was putting on most of the focus. >> where does it leave chevron if they don't decide to chase

anadarko >> they'll certainly have a couple of options and a billion dollars on the balance sheet to go and make another acquisition or buy back shares that will be their, you know, option to go and raise the bid if they want to but if they don't, they'll have extra cash in the balance sheet to go do something and i think strategic with it. >> up 2% on the news, i wonder if that's because investors are saying maybe they're walking away >> the market tells the story, right, cancel lkelly and tyler? maybe chevron is out of the game to josh's point. a billion dollar break-up fee. think about that you don't do a deal, you just made a billion bucks dog nothing, gauging bankers and lawyers for a couple of days to put in the original bid. nobody believes if chevron comes in with a bid, it's going to top occidentals. nobody believes that, that i've talked to. they believe if chevron does sweeten the bid, it won't be above 76 a share it will be less than that because they viewed their equity, their stock as that much better than occidental >> guys, thanks. brian sullivan, josh silver

sateen, thank you so much. >> go to aditi >> reporter: the fda announced it's authorized marketing of heated tobacco products like phillip morris products by altria, basically means it will allow altria to sell in the u.s. this is a huge moment for altria which is increasingly been investing and placing bets on the alternative tobacco products it's one, juul is another. altria is 35%, has a 35% stake in juul. overseas, iquil in the market by phillip morris international called the great unsmoke shares are up now. altria 2%. back to you guys. >> thank you very much adi aditi. to a developing story. violence in venezuela as opposition forces clash with

those loyal to nicholas maduro a eamon javers at the white house. >> reporter: the white house and u.s. administration have backed the opposition person there, gu guaido you're seeing these clashes. voicing some support in the streets right now. we also saw a warning from mick mulvaney, the white house chief of staff speaking in los angeles today, suggesting a warning, really, for russians to stay back out of the situation. the russian military does have some personnel on the ground in venezuela. the united states military, the u.s. says it has been delivering supplies and humanitarian aid in the area they don't want it to brush up in venezuela obviously something to watch for with the flash point the treasury department for its part is looking past this and

suggesting the united states stands ready to use all of the tools available. and venezuela wants the current regime removed it's unclear whether that's happening today or where this is all going to shake out but obviously, a very fluid situation on the ground in venezuela. the u.s. herecontenting itself to remain focused on supportive words for now. >> eamon, in the meantime, back at the white house, that meeting today between president trump and the democrats, some big headlines on this infrastructure plan >> reporter: that's right, and a big number $2 trillion is what nancy pelosi and chuck schumer, the democratic leaders on the hill say the president agreed to today. they say they're going to meet again in three weeks to figure out how to pay for all that but for now, there's sort of an era of good feelings here, maybe short-lived at the white house where the white house officials and the democratic officials who are here today suggest this was a good and positive meeting. they're moving forward on infrastructure and they'll figure out some of the details

as they get closer to it in about three weeks and then, of course, kelly, we just saw the president tweeting about the fed again. this is interesting to watch because previously, larry kudlow of the national economic council director called for a half point rate cut by the fed. there was a lot of controversy over whether that was appropriate for kudlow to do, whether the white house was sort of badgering the fed and now the president in the new tweet is calling for a full 1 point rate cut by the fed so clearly, the white house is negotiating with the fed the question is whether the fed is negotiating back in terms of rate cuts but you can see the president there comparing the fed unfavorably to the chinese government and saying that if the u.s. administration and the fed were to work together, the economy could be going up like a rocket and we could have very good things happening here if there was a 1 point rate cut. >> calling for more quantitative easing as well that's moving the goal post. thank you. uber preparing for an ipo and the ride sharing company

faces strong competition in one of its key markets we'll tell you about that and what it means for uber are things getting brighter for ge shares popping on the earnings beat this morning. we'll talk with one of the biggest bulls on the stock i consulted with your grandmother's doctor. we can do the screening at her house. 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. ♪

here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back as uber gets ready to go public,

one key market they're focusing on for growth. deirdre bosa has that story from miami. deirdre? >> reporter: it's hard to overstate the importance of latin america to the global ride sharing picture. it's a region that's still relying on trains and buses, so traditional forms of transportation and that makes it less appealing for commuters to actually own a vehicle secondly, it is one of the fastest growing mobile markets in the world so for these reasons, it is one of the most exciting opportunities for ride sharing companies but it is also one of the most competitive uber has been there since 2013 and built up the market share and llatam represents the bigget growth in north america. $200 billion last year and that represented nearly a fifth of the company's total revenue in its f1, top five most important markets. uber said it's currently the dominant player in the region

but it is battling tough local competitors such as brazil's 99 app. early, and were able to take some of the market share away from uber and last year acquired by ride sharing giant dede they are using that capital to compete out of brazil and to expand beyond in latin america didi itself went into mexico last year with the well worn ride sharing play book right now which is, reduce prices for riders, offer subsidies to drivers, and make the battle that much more competitive and expensive. kelly? >> deirdre, real quickly on that uber is not allowed to compete in didi, only in china, so if they buy in other parts of the world, they can still play or try to >> reporter: that's right. and another reason why latin america is so important for uber is because it's shut out of china for the time being that represents a huge market didi itself is facing its own

issues in china so latin america is important to it as well and these are two ride sharing behemuth and invested in didi and every ride sharing company almost so very complicated but the battle is complicated as well >> deirdre, thanks very much deirdre bosa in miami. shares of general electric, despite topping expectations, larry reaffirms 2019 is a reset year for the company so is ge on the right track with this turnaround? scott davis is here to tell us one of the bulls on the street on ge with a buy rating and a target of $18 a share? welcome back good to have you here. did you like what you saw on the numbers today and if so, why >> i didn't hate what i saw on the numbers. first time i could say that in probably five years. the numbers were good. i mean, they weren't great they were solid. it felt more like a normal industrial company for quite

some time. last few years, it felt like a levered bank with a bad industrial business and now it feels like a much smallerba eer with industrial businesses turning around. >> where is it >> it's all power. power is tough >> nobody is buying. >> well, orders are actually up. orders are up double digits for the first time in a long time. >> that had been the problem, right? power has been a disaster. >> do you believe it's the decline? >> i think electricity demand will remain flattish not in decline for years to come electric vehicles provides a new opportunity for electricity growth and i think that's real but i don't think it's a growth market, no >> how much, if at all, is the 737 max issue affecting ge and its aircraft engine business >> the irony is short-term, it helps them they can catch up to production.

two months behind and all these major cost issues and now you have a chance to catch up. there's a certain point where if demand really falters, then, you know, all bets are off and it gets bad but for the next two or three months, it helps them. long-term though, we need to fix the 737 max or that's an issue. >> sure. how about for cash flow in general, what's your projections based on the latest numbers? >> the guidance was zero to negative $2 billion. you know, you came in this quarter a little ahead of expectations, so we're tracking to at least better than the bear case somewhere in the middle of the pack first time we've seen stability in cash flow in quite some time. >> what's driving that, do you think? >> well, on the call, they said there was some pushback restructuring. some is timing and i think some is probably better underlying operations larry is an operating, that's what he did. he's a factory guy so on the conference call, the question i asked was about lean manufacturing and are they ready to get better and he said, yes they are and i think that's where you'll

see the major improvement. >> the stock is what, in the $10 share area right now $18 price target on it what's going to take it there and how soon >> the asset value worth at least $18 but you have a power business that used to generate 50 plus cents of earnings, generating negative or zero right now. a big delta right there and renewables, business that can contribute and certainly aerospace could contribute more and health care could contribute a little bit more. the underlying portfolio is, you know, has more than a dollar of earnings power it's just the question of 17 multiple on it it's 17, 18. >> pretty high >> it would right now. right. it would be in the context of that dollar earnings, something higher like $1.20 or $1.30 some sort of leveling off point. >> thank you, appreciate it. that jump for ge today what did it do gave tim seymour a boost the stock draft is now up 11%

since he took it a week ago. there's still a long way to go, obviously, in our contest. you can follow along at cnbc.com/stockdraft. there's a leader board there where you can go every day to see how your favorite team is doing and i believe that mr. seymour is leading right now. >> i'll check in the break you better believe it. disney having the best shares in more than three decades. what will it take for the magic to wear off? we'll debate that right after this your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

welcome back to "power lunch. i'm michael santoli at the new york stock exchange. disney lower today but still having the best month in nearly 20 years how much higher can it go? katie stockton and gina sanchez are your "trading nation" team today. katie, interesting set-up for disney stock went sideways for the better part of four years and now almost vertical on this burst of good news where does that leave the chart? >> disney had a breakaway gap this month, that tends to be a long-term positive development it had been under accumulation for some time. momentum improve during the trading range and i'm encouraged by what we saw on the back of

the breakout in the short-term, a little bit overbought but i'd love to add exposure into a pullback with disney to take advantage of what would be a long-term measure move projection of 180 on the back of that breakout. >> all right, gina, whether it's the "avengers" box office or the streaming plan, a lot of good news is now out in the open. is that telling you it's time to take procfits or support the bul case >> i think it supports the bull case because there's actually a lot of good news for a long time you look the, all of the photograpthings that diss

bought i think the fundamentals look really good and not overvalued here disney is still fairly valued. that's why i think it's still an interesting buy. >> historically, traded as a good premium to the market and see if you could get back over time thank you very much, for more "trading nation" head to our web site or follow us on twitter >> thank you very much michael, ahead on "power lunch," worldwide start-ups from all over converging on miami for a chance to pitch their big idea to the music super star pitbull. he will join us live plus, a rate decision tomorrow how healthy is the economy we'll give you the exclusive results of the cnbc fed survey and health of housing. what the latest data about sales and home prices signals. all this when "power lunch" returns. >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> many traders like to watch technical patterns and one of the most popular ones is called the golden cross the golden cross is where a 50

day moving average moves up through the 200 day moving average. while this pattern is not intended to get you in at the very bottom, it can be an effective entry point for a stock or etf in an uptrend i'm randy frederick and schwab is the better place for traders. woman: my reputation was trashed online,

i fe completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705.

all right. national security adviser john bolton is speaking at the white house right now. let's take a listen. >> potentially despised moment in the efforts of the venezuelan people to regain their freedom, which we fully support there have been a lot of speculation comment in the media about what's happening in venezuela. we think it's still very important for key figures in the regime who have been talking to the opposition over these last three months to make good on their commitments to achieve the peaceful transfer of power from maduro to juan guairdo

and then rafael hernandez all agree maduro had to go they need to be able to act this afternoon or this evening to help bring other military forces to the side of the interim president. the cubans, we believe, have played a very significant role in propping maduro up today. possibly with help from the russians that's the speculation, certainly, in caracas. we think this demonstrates why we need venezuela ruled by the people of venezuela and not external forces. that's what we're looking at and i would be happy to answer a few questions. juan is out on the streets of caracas now rallying the people. he's called for the people to come out and they are increasingly on the streets, as i think many of you know

there were mass demonstrations planned for tomorrow and circumstances of what happened today in croaracas called people out all over the country he's behaves in the same courageous way that he and other figures in the opposition have these last three months. over 40 people have been killed by the maduro regime in the course of the protests this is an act of bravery by guido and others >> we are going to continue monitoring john bolton there, talking about the evolving and very fluid and really quite dangerous situation in caracas where president maduro under pressure to step down. the u.s. trying to ratchet up that pressure, citing potentially mischevievous effors by russia and cuba to prop him

up. a fed decision on interest rates. latest rating on gdp, above 3% i think 3.2% to be exact what are experts figuring growth will be for the rest of this year and beyond? steve liesman joining us now with the results of the cnbc fed surv survey steve? >> the first quarter was seen as an aberration by most of the responders who are cnbc surveyed they see growth stepping down from the 3% level of last year down to 2.4% which is still above trend and 1.9% in 2020 which is thought to be around potential. 22% chance of recession down for the second survey in a row 26% back earlier this year chief economist and one more thing before that, i want to show you here, the factors in growth the global slowdown about 30 basis points off of growth and tariffs off 20 basis points but

then 40 basis points on a permanent level. in addition to gdp chief economist upbeat on the numbers above potential but the u.s. is vulnerable to shocks whether our own making or economic conditions outside our borders. let's look at the main tlehreats to expansion a third say it's global weakness 17% say protectionist trade and the president's temperament. 10%. not an issue, until recently back 17% in december of 2017 but it's come back recently as a concern for some in the market the 2019 u.s. growth slowdown is proving much smaller than the market feared. the fed will need to boost its growth estimates the economic outlook is key to the policy >> as always join us on set, steve. president trump firing off on the fed again. tweeting a couple of minutes ago, blaming fed's rate hikes

for the economy and calling to cut back by 1 percentage point now saying the u.s. economy has the potential to go up like a rocket saying there should be quantitative easing. chief economist at amherst pier pont securities. welcome to you >> good afternoon, kelly. >> let's start on with what the president just said given that the fed decision comes out tomorrow do you think he's trying to, as i suggested earlier, move the goal post further, maybe if they only cut it a quarter basis points, it won't seem so bad >> he's the master negotiator. the extreme position and hope to split the difference maybe so >> in quantitative easing, in a way, we're probably going to see the fed doing more bond buying, at least if you look into next year right, just to then hold the balance sheet steady. >> eventually, will catch up with the needs of the economy and they'll be buying again but

i don't know if they would call it quantitative easing it's just the normal track with the growth and currency, for example. >> i know, but it's still the idea they're in there with the economy strong. >> maybe that will satisfy the president. >> true. >> steve, we were talking last week and it feels to me like the president is taking jawboning to a new level with respect to the fed. it's not as though he's the first president to put some heat on fed chairman but certainly is doing it in an aggressive way that's unusual >> it doesn't feel that way, tyler. it is that way statistically, you could show that the president has probably made more comments about the fed publicly, certainly than all of the presidents in the 20 years i've been covering in the federal reserve and probably all of the presidents in the 20 years before that. good for the central bank is good for the economy >> let me get to the other question that follows that

is he right? is he right? >> about what? >> that we would be a lot better off economically if rate down a full point and the fed was stimulatin that? >> let me tell you that i guess what i could say is the president's recommendation is an out of sample recommendation it's not one that exists almost any body that covers the federal reserve or monetary policy in the united states. we could, i suppose, juice the economy and run it hotter than it's running now with the fear of two things. financial bubbles that would burst and inflation. probably have a little leeway on inflati inflation, maybe low rates but we know the federal reserve would very much like to get the balance sheet back to something that's normal.

and to have a little ammunition for a recession. if we were to follow the president's recommendations now, what would the fed have in the tank >> for you, steve, is there a case to be made that the inflation data is so low that it says, hey, forget the fact that growth is strong it's proving it's not raising inflation so there's no reason for the fed to say, we'll raise rates in the stair step manner should it if low as well >> in the near term with inflation, core inflation relatively soft, not going to be raising rates. we'll see going forward. fed is in a tough spot in regard to that. a strong economy eventually generates inflation and if they don't believe that anymore, it's hard for them to know what does cause inflation and therefore, how to respond to it >> final question, mr. stanley, to you on this which circles back to the nomination of steve moore to the fed board. is that a nomination you think

is appropriate both because he's a very political guy but also because of his views on monetary policy which call for lower rates in this case >> mixed feelings on this. i would like to see someone on the fed who is a believer in the power of tax cuts and the supply side message he's made so familiar i think the question is one of tone and is he the proper messenger for that if he's viewed as partisan, other folks may not be willing to listen to him and give him an honest listening. >> if you want a different one, they have to be one they'll connect. steve liesman talking to stephen moore. mr. worldwide himself, pitbull about why and how he's tinryg to help miami become the next silicon valley

when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley.

they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.

and we go to miami now welcome back to "power lunch." because miami is taking aim at silicon valley tech start-ups around the world competing at the emerge america conference for a chance to pitch including mr. worldwide, pitbull with mayor francis suarez. welcome, gentlemen great to have you here let me begin with you. >> thank you for having us >> fantastic to have you back, pitbull. >> thank you >> let me start with you, mayor. whether you try to lure existing companies from other locals into your state and region or trying to get new ones to locate there, where do tax incentives come into play and how do you look at the competition among cities like the one that just ended with amazon where big tax breaks were given to try and attract companies? how much of that are you doing

how big a part of it is it >> well, to borrow a phrase from my brother to my wife, we're in a worldwide competition for competition and tax structure and incentives are a part of it but no state income tax state which means under the federal tax law that we don't, we're not at a disadvantage to states like new york and qualify where they can't deduct the state income taxes. obviously, being on amazon's top 20 put us on the map and the discussion for being in the tech eco-system conversation and certainly things like the announcement this week here at emerge that were being considered as a headquarters for the latin american fund of the vision fund by marcello cloud at soft bank, those are huge accomplishments to bring us on par with mr. worldwide over here. >> pitbull, you know miami as

anybody, the ins and outs of it. what does the area have to offer to a tech company and i know that a lot of what you do of advancing your business or brand is uniquely tied to the use of data what does miami have to offer to tech companies >> well, for one, we should have gotten that amazon amazon deal way, because jeff bezos happens to be from miami okay that just shows you how much miami has to offer it's real simple it becomes a platform and a springboard for all the companies down in latin america, silicon valley, silicon alley or silicon paradise may not pay attention to right now we give them the opportunity to come down here vet what they have brief their companies and when they're ready to go off they go off and we get them in front of certain folks in silicon valley, alley or paradise this is going to be silicon 305. 30 f-i

30-fi. >> we've had a bunch of companies list to go public this year we saw wework. we've got pinterest is out there right now. we've got lyft which has struggled. uber is coming are these names you're going to get in on or you're already in on or are you focused on the next generation of investments >> i'm definitely focused on the next generation of investments to be honest with you. actually i missed out on uber at an early stage but as far as all the companies going public right now it's a great thing to study on what's going on and how much of it is fluff and how much of it is real and that's why i like to sit back and look at -- to be able to see it from the root to the fruit and what i mean by having it here in miami and seeing these companies when they are birth td allows to us understand and evaluate what the outcome's going to be in the future. and that to me is the best process because i love to see the journey and i love to see growth >> and that's playing out right in front of you. can you give us an example of a name or two or an industry area where you think the real growth is and not like you said among

these companies going public now. >> i mean, honestly, when it comes to -- i always like to look at what's going on on the biotech side of things i think when it comes to -- that's a field that's always going to continue to grow and people are always looking for technology to make humans better or to be able to cure humans and that's why i feel it's a field that's always -- i would say something you could bet on but the beautiful thing is coming from the music industry you never know what record's going to hit, what record's not going to hit it's always about sitting back and being able to learn. that to me is the funnest part >> luis suarez, i feel like we've shortchanged you but i know you understand why when you're sitting next to that guy. >> i totally do. this is my brother it's just ballotman atman and b. >> it's all good >> pitbull we have this thing we did last week called the stock draft and it's a competition of some people who are celebrities, famous people like you others who are investors we'll do it next year.

you have a standing invitation would you join us for our stock draft next year if it works for you? >> yeah. i definitely would join you for the stock draft. i don't know how good i'll be at it but i'm always up to have fun and like i said before i'm all about learning >> april 23rd. >> i'll do it. >> thank you gentlemen >> what impact should falling interest rates have on home sales? some numbers we'll have that right after this "curiouser and curiouser," said alice. "the rabbit-hole went straight on like a tunnel for some way." "i've seen a cat without a gri, but a grin without a cat." hey, mercedes, end audio. change lighting to soft blue. the completely reimagined 2020 gle.

with intelligent voice control and available third row. your adventure awaits at the mercedes-benz spring event but hurry the event ends april 30th. what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

when you rent from national... it's kind of like playing your own version of best ball. because here, you can choose any car in the aisle,

even if it's a better car class than the one you reserved. so no matter what, you're guaranteed to have a perfect drive. [laughter] (vo) go national. go like a pro. see what i did there? weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

falling mortgage rates like you might expect are boosting home sales, but prices are still losing some steam. diana olick has the numbers. diana. >> kelly, the numbers prove how sensitive the numbers are to interest rates pending home sales with signed contracts so people are out shopping during the month jumped a wider than expected -- mortgage rates plummeted to the lowest level in over a year. the 30-year fixed topped 5% at the start of last november then back falling and took a sharp dip in march to just over 4% price gains are shrinking. prices up 4% in february compared with a year ago according to s&p case shiller.

smaller than the gain in january. in one major market san francisco prices actually went slightly negative in march year over year for the first time since 2012 that according to core logic now, there is more supply in the market overall but much of is just because houses listed already are actually sitting longer back to you. >> diana, thanks very much >> all righty. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. it is the final hour of 12 i'm wilfred frost. >> and i'm sara eisen. it's apple earnings day and today's report could be all about the services number. we'll tell you what key metrics to watch and break the numbers for you as soon as they are released >> and president donald trump criticizing the federal reserve in a tweet in just the last hour former vice chairman don kohn will give us his take ahead of tomorrow's fed meeting >> plus the oracle of omaha enters the energy love triangle between anadarko, occidental and chevron. what warren buffett's pledge

means for the fate of the