driving. >> the lyft numbers last night, you can see how it's hitting the stock today. right ahead of uber's ipo. it might come hours after tariffs are imposed. >> the timing is not great >> totally fine. >> we'll continue to follow this that does it for "the exchange". it's time to join tyler and melissa for "power lunch". we'll see you in a moment. welcome everybody to "power lunch" new at 2:00 today, deal or no deal president trump says china is coming to get it done, but we shall see. we'll tell you the state of play up to the minute plus the trade war is fuelling a lot of volatility into the expectations for growth and corporate profits. why that fear, the trade war fear could force the fed's hand. and disney earnings come out after the bell the stock is up 17% in the past month. should you buy ahead of the results or just hang on and watch and see?

"power lunch" starts right now welcome to power lunch a volatile trading session here off yesterday's big losses wall street still trying to make sense of the headlines about trade talks. the dow in the green right now higher by 90 points or a third of a percent it was up more than 130 points at the high. all three major averages trying for their first gain in three days >> and today's market turn around coming as the white house seems optimist take china wants to make a trade deal eamon javers has the latest. >> they seem optimistic. they're not saying why they're optimistic we saw the tweet from the president earlier today when he said he was informed the chinese were coming to washington tomorrow to make a deal. that is the chinese vice premier who is leading the delegation arriving here some of them

today. negotiations and meetings tomorrow it's not clear what the president based that on. sarah sanders came out to talk to reporters a couple hours ago. i asked her what the president knows about why the chinese are coming here and what he based his tweet on here's what she said >> we've got an indication they want to make a deal. our teams are in continued negotiations they're going to sit-down tomorrow we'll see what happens from there. >> sarah sanders there saying we have indications that they want to make a deal that got some attention up on wall street. the market moved in response to that comment from the press secretary. it's not clear what those indications are. i've asked the white house and aides around here exactly what they're referring to no further information from the white house. apt mystic tone here at the white house. not a lot of specifics we'll wait and see whether or not the president meets with him in person. he's done it in the past at the white house. no indication that is actually

on the schedule for now. >> thank you eamon javers at the white house. for more on the intraday turn around let's go to bob pisani >> you can see how confused the traders are based on what eamon was saying look at the chart. four different market moving trade headlines. the futures move down about 15 points before 5:00 a.m. on word that china backtracked on nearly all aspects of the trade deal then it rose more than 10 points on president trump's tweet just prior to the open. then it rose another 12 point mid-morning an sarah sanders' comments the market dropped about the european close on another headline about possible retaliation from china which is it? we don't know. the problem is there's three obvious outcomes a trade deal of course, that would make the markets happy, or no trade deal, but no increase in tariffs and talks continue that would probably be okay for now. and then no trade deal tariffs increase

everybody goes home angry and the markets are not going to like that. trying to price in the probability of a trade deal proving to be very difficult tyler, back to you >> thank you, robert the complicated will they won't they back and forth on trade creates problems for central banks. and steve liesman has more on that >> good afternoon. i want to pick up where bob left off. the possibility of tariffs put the outlook for fed rate hikes in play. let's do what bob by sawny was talks about. goldman sachs saying it's more likely than not that president trump increases tariffs. saying the tariff increases is base case, 60% chance of a tariff increase from 10 to 25% on the additional $300 billion of chinese goods, only a 25 % probability. you're laughing, melissa >> i don't know, steve i mean, it feels like -- >> you're right. would you hold onto that thought? i want to come back to that.

>> i think that's an important observation. jpmorgan in a new report says the new round of tariffs will reloose u.s. growth by 25 basis points we would expect the fed to initially focus on the growth implication and look past the inflation impact so tariffs or not can put pressure on the fed either way if they're dropped, they could ignite a rally and clear the way for better growth and some economist think rate hikes if they're dragged down u.s. and global growth, they could prompt rate drops it's hard enough for investors to forecast growth and earnings. now they're in the game of forecasting not even domestic political outcomes, but foreign u.s. trade political outcomes which is another uncertainty add to that we are really not

sure about the effect these tariffs have on economic growth, inflation, and employment. and then add onto that we're now in the fourth layer of increased uncertainty. add we don't know how central banks will react you're this -- is absolutely right. we don't know any one of those four things. >> it's a very precise business to say 20% shares of this or 25% chance of that in terms of the impact of the tariff hikes if there are tariff hikes, is it seen as inflationary >> no. no i'll tell you why. if you think of inflation as the rate of growth of prices, what tariffs do is a one-time shift in the price level so what you'll do is you will get a single -- let's create a model here where -- >> it's also -- >> in a month they go up 20% in the month you add the 20% the next month you would not have the 20% growth. a one-time shift in the price level unless it changes inflation expectations that is among the concerns of

economists that all of a sudden people start to think wow, prices are going up not just here but everywhere. >> companies probably wouldn't mind passing them along. >> some of them are. did you see what whirlpool did the story here, whirlpool which got protection on tariffs, raised domestic prices on washers and dryers there was no tariff impact that used the incidents of the tariff to raise prices on dryers as well it gave them cover >> yes >> whatever it was >> i was going to say that's a tax. unless the consumer turns around and says i'm going to get 5% higher wages to pay for my dryer, it means they're paying for a more expensive dryer >> this would be one of the biggest tax increases if you think of it that way in a long time >> thank you let's put it together. let's bring in chief investment strategist and principal senior investment strategist. thank you so much for joining us

brian, i'll start off with you is your outlook for the markets changed if tariffs are increased and/or expanded on friday? >> no. two days in the tariff tantrum doesn't change a lot investors are ron reactive and nonfundamental what's happened with the stock market, we've built in a cushion for a potential even further tariff tantrum there's a 20% chance of nothing happening. there's -- i don't play that game in terms of percentages with respect to tariffs. nobody knows it's a dangerous game to throw out these types of numbers here's the bottom line i think tariffs have been equated from a psychological and sentiment basis to be negative what we saw in the marketplace last year steel and aluminum companies and users of products froze. they stopped spending money. with the tax cuts we should have hat cut backs in 2018. we didn't. i think it could be a negative for a sentiment basis in terms of growth.

bottom line, i still think you have to be a fundamental investor by value and dividend growth equities do better in a higher volatility environment and stick with longer term positions >> we were having this conversation with steve about how a tariff increase could be viewed by economists as well as the fed and that a one-time price increase wouldn't be inflationary it would have an impact on the walts of consumers out there and corporations who are spending money on raw materials and inputs so how do you sort of work through how that will impact the overall market this year >> well, i think steve laid it out perfectly as he's talking about the impact to inflation and what that might ultimately mean for the fed look, if we take a longer term view, we continue to believe a deal will ultimately be reached between the u.s. and china but the timing of which in the path and how we're going to get there, i think that's really the uncertainty. and if anything, it just adds

more uncertainty to the economy, to the markets which have already had a pretty significant rally so far this year i mean grrks we look at next year's earnings, for example, the s&p 500 today is already trading at approximately 16 times forward earnings i guess the big question we're asking ourselves is how much more up side is there in the market considering not only this risk but all the other risks we have to deal with. >> given the ten-year yield is below 2.5%, isn't 16 times not really expensive >> i'm not arguing that the market is expensive. but if i think about the opportunity in the equity markets just big picture, it's going to come from either earning growth or multiple expansion. that's year the bullish argument was that earnings were going to grow at over 20% that was on the back of the tax cuts moving forward, earnings growth is clearly decelerating. we're seeing it in the first quarter. we look at this year and next year, earnings growth will

continue to slow down. what's the catalyst that leads to multiple expansion? from here it's difficult to identify especially in light of all the risks which some of which we've highlighted. >> any reason why i should invest in sectors that are seen as the most impacted by china trade war, semi conductors, different pockets of technology, industrials? >> i think there's a big misnomer with respect to semis and how they mean to technology. we view technology in totality when you look at earnings as the most stable in the s&p 500 they're earning stability has increased since 2002 relative to any other sector in the market it's more consumer staplish like than consumer staples. i think so much was made last year with respect to the faangs that you look at stocks like nvidia and amd that were down in the fourth quarter because of their earnings and stability from a longer term perspective,

we're long tech. we love the consumer staplish type of tech that's where you want to be. in terms of the timing of the tariff thing, longer term they're going to get a deal done the market has built a cushion in we are going to be in volatile times and react accordingly. we believe a deal will get done. in terms of risk mitigation for equity portfolios, you want to own in overweight large cap stocks this is 1995 right now year one of two or three years of goldilocks. >> we can't call them ma fangs >> why not >> it sounds like muffins with fangs. >> come on, kelly. >> anyhow. >> all right brian, thank you joe, thank you as well coming up, oil is moving higher today in part because of more rattling from iran. are higher prices coming as the situation plays out? crude is around 62 a barrel. disney is smashing the box office

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listen to your mom, knuckleheads. hand em over. hand what over? video games, whatever you got. let's go. you can watch videos of people playing video games in the morning. is that everything? i can see who's online. i'm gonna sweep the sofa fort. well, look what i found. take control of your wifi with xfinity xfi. let's roll! now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. we continue to follow the big story out of iran today. the president announcing iran will stop complying with part of

the 2015 iran nuclear deal this is days after the trump administration allowed sanction waivers on iranian oil to expire and on the heels of the deployment of u.s. military groups to the persian gulf let's dig deeper into the rising tensions and the impact on the oil markets with the founder of capital john killdoff. how destabling is this likely to be for the price of oil and how concerned are you? >> i'm fairly concerned at this point. the chess pieces are standing up and potentially confronting iran militarily the chance here is that -- >> and that would do what to the price of oil >> oh it will spike it higher at least temporarily. when we bombed iraq back in the day we were up only for a few days because the overwhelming force that rolled into iraq was quick and lightning like

the oil infrastructure was spared >> what are -- basically as i understand it, what iran has said is effectively to the country, the whole world, that you better not pay attention to these americans sanctions and go against them, or we're going to resume the building of our nuclear facilities in i believe it's iraq, irak, i believe is what it's called and buy our oil or else. >> yeah. that's not working out for them. they're in the process of getting squeezed like i've never seen before. right now from the best we can tell, they are having a huge problem selling oil really at all. i think they're output and exports will drop. many of the tankers are stripped of their ability to sell oil the black market is a murky place. not by a lot will they get it out. the secondary sanctions that loom that the united states can

place -- >> banking system basically? >> right it's scaring the daylights out of just about every legitimate purchaser of iranian oil at this point. it could change, but for now this european system where you can try to evade the systems not being picked up. even the big chinese companies, not looking to buy iranian oil at a discount because of the secondary sanction fears >> let's play this out let's say all the other countries say we're with the u.s. we're not going to buy anything from iran. our business is done iran continues its nuclear capabilities program building it up what happens then in your view do they have the wherewithal to do this? and should we be afraid of that in and of itself >> i think they're going to get desperate is the issue i have. now, will they try to block the strait of hormuz no they will first try to come out via proxies in the region. that's why our stuff, our military assets are going over

there now. they'll respond to those >> do they think force is going to make us do less than we're doing now? what do they -- what are they expecting our reaction to be >> i liken it to if you took a life guard course where they tell you if you save the drowning man, be careful they might take you down that's the aim here. to try to wreak havoc within the region i'm not saying to close the strait, but to attack potentially u.s. assets. other things to disrupt, to make it unsafe, to make it maybe costly in terms of insuring your vessels to be in the area and region i think they're staring down the prospect because how some others are leaning forward for the potential for a real conflict. again, they're going to get desperate enough there's talk of other sanctions on some of their metals that they make. a lot of their cash from as much as oil they do quite well in the minerals markets that looks to be foreclosed

next this gdp is about to crater. they're going to get desperate it's going to push the country into the harms of the hard liners in iran who don't necessarily care that much about consequences longer term they are there to make a point >> john, thank you >> thank you ge is trying to move forward and put the past behind it today a new proposal that would force the company to revisit the past is now the time to buy ge? and uber driverers protesting and the upcoming ipo. all the details ahead. what's a target date fund?

529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start?

empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. welcome back to power lunch. general electric on the move today as it holds the shareholder meeting. investors calling for ge to call back -- the current ceo pointing to a weaker second half of the year for the company mark newton are your trading nation to team to talk about ge. quinn, let me start with you obviously under new leadership right now. the stock is up off the lows

but still, i suppose, kind of a show-me story in terms of whether the strategy can get traction >> yeah. there's no question. this is just a long-term turn around play. i mean, bulls will make the argument that the accommodation of the health care unit and the aviation unit combined is worth more than the current market cap of the entire company. that's fine, but the problem is the company's debt load. you're looking at a 200% debt to equity and honestly, if they hit the 55 to $0.56 number next year, trading at 20 times that eps, you're at a fair value of around 10 to $11 a share. they're going to have to do a lot more of what we feel is probably selling of business units than just cost cutting to get that eps up, that balance sheet. it's going to take a long, long time >> yeah. seems like a little bit of a leap of mouth. mark, how's the stock acting by your lights here obviously you had a low below $7

not long ago still, on a long-term basis, pretty dpraeepressed >> you look at a longer term chart of ge, just compared to the low back in 2009, you see this level wecame within about a dollar and a half of hitting the same level that was pretty meaningful support. and just recently we've shown signs of really trying to break out of this entire down trend that's it's been in since last may. it's about 30% under the levels. yet, in general, the momentum has started to really improve in this stock you see things like weekly rsi, the road of strength index is up to 53. highest level since 2017 you see monthly gauges of momentum like macd making bullish crossovers all this is constructive in any opinion. short-term people would look at the charts at ge and say it's bearish. i don't disagree it's had three different hits of a level difference last may. it's really got to get up over $10.50 on a weekly close that would really help to jump

start this stock i think the stock could get up to $16 to $18. i'm an immediate term bull on the stock purely based on the momentum near term it has work to do. >> all right i guess you need a long time horizon to believe it in mark and quinn, thank you. for more trading nation, head to our website or follow us on twitter. kelly, back to you thank you. ahead on power lunch, disney earnings after the bell. the stock is riding the avengers wave up 17% in the past month should you buy ahead of the results? plus uber revealing new details about the ipo pricing as its drivers take the street to protest against the company. and a wild week for the major averages here's key support levels you need to watch. and now the latest from trading nation and a word from our sponsor. some people refer to the vix

as a fear gauge. i like to refer to it as a gauge of uncertainty the moves could either be to the downside or to the up desi i'm randy frederick, and schwab is the better place for traders.

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welcome back here's your news update at this hour the taliban attacked the offices of an international aid group in kabul. the group was attacked because it was involved in harmful western activities an appearance in a canadian court over afterextradition case new england was arrested at the request of the u.s she has denied any wrong doing walmart is raising the minimum age to purchase tobacco products to 21 years old the company made the announcement in a letter to the fda about the new policy it goes into effect on july 1st and includes sam's club stores as well. and the city of liverpool is buzzing after one of the soccer club's most memorable european nights the team came back from a 3-0 first leg defeat at barcelona to

win 4-0 and claim a spot in the champion's league final which is europe's biggest prize congratulations to them. that's the news update this hour back to you. >> thank you about 90 minutes until the closing bell the dow is up by 118 points. or half a percent. s&p 500 up by 9. nasdaq up a quarter of a percent. >> we start with today's ipo parsons. it's an engineering and construction company doing nicely in the debut. priced at 27 it's trading above 30 for a 12 % gain cody losing let's money this water. revenue falling short. the stock is up about 80% this year giving back 4 % of it today. inogen using -- losing 20% of the value. analysts turning bearish jpmorgan cutting the target by more than $100 a share

no this stock closed at $140 on february 26th. it's urnds 70 -- it's under 70 right now. oil is up earlier. i don't know that it still is. >> it still is the reason why is because we have seen again tensions in iran still playing part of the story. but we did get an unexpected drawdown in u.s. crude stockpiles last week 4 million barrel draw. analysts expecting a 1.2 billion barrel build it has a bid to the particular oil prices west texas intermediate, 62.10 for wti, down as low as $61.07 the reason why, that's important because right around the 61 mark is technical support it's where just about the 50 and 200-day moving averages for west texas intermediate are converging look at that level it will be key in the coming

days of trading. two days until it goes public, uber drivers around the world are striking today to protest several issues including they feel left out the executives stand to strike it rich. we got news on the pricing >> it was surprising a source tells us uber is set to price at the midpoint or below it may be too early to tell. leslie has heard that demand that be muted. as of yesterday, it was three times over subscribed. that's not a lot for a highly anticipated ipo. at the $47 midpoint uber valuation is roughly 86 billion. that's still higher than the private market valuation of $76 billion. it's not that $120 billion figure that was once reportedly discussed. here's the thing this is the first time the public market investors are getting a really good look at the ride sharing business model.

and their huge losses and how much control they have over them it may not have happened that last night when lyft reported the first quarter as a public company, it took away two key metrics. people were unhappy about it today the drivers are in focus they're striking across the country. they play a critical part of these platforms and both of these companies' paths to profitability. they're one of the biggest costs the two companies can control. they could also on the flip side become a cost they can't control if regulations required them to be treated as employees. and the dissatisfaction has been building since lyft's ipo and uber it's in front of them now. all the people getting rich that aren't them. >> the more you know, the less you like it, it seems. >> yep >> deirdre, thank you. disney's tv networks are going through growing pains as they launch a streaming service. can the company's other divisions make up for it

that's what we'll look at after disney reports after the bell. julia has more >> this is the first quarter where we'll see the combined results of disney and the newly acquired fox entertainment assets ahead of that disney plus launch in november, there are three other divisions in the spotlight. first parks. we're watching for insight into summer bookings. the impact of higher ticket prices and what to expect from "star wars" galaxy's edge. second the studio. while avenger's end game won't boost this quarter, we'll be listening for the studio's strategy after announcing three new 23films. and they'll see how higher affiliate fees are helping -- projections of a decline of 14% while revenue is expected to decline about 1% >> joining us now as well is the

cfra equity analyst who has a price target of $150 it's good for disney i don't know if it's the earnings this afternoon that are a risk, but as we look to disney plus execution, their ability to use it to offset losses in espn becomes more and more important. right? >> absolutely. it becomes more and more important. and i think you almost think of this quarter's earnings as a footnote i think the main focus for investors is how the streaming is offering, kind of takes off they've got the direct to consumer and international segment. it's still obviously going to be making losses for quite some time keep an eye on how much spending is weighing on that segment. and beyond that we know that the studio is going to face some very, very difficult comparisons this quarter so ultimately i think we kind of look beyond this fiscal year and trying to get a sense of how the whole fox integration kind of

unfolds. >> in that sense is there anything they could say this afternoon that gives you insight for belter or worse on that trajectory for the next couple quarters >> in terms of the streaming service, kelly >> well, obviously they might update the subscriber outlook for espn plus. we know that they are ahead of expectations that's going to probably give a gauge as to how the streaming space is evolving. some of the other guys are reported sling tv came in below expectations there's something going on within the streaming space in terms of the competition ratcheting up. the spending is escalating that impacts the ability of a lot of these services to become profitable, and that's really the biggest question out there >> sure. julia? >> for the streaming service, we're in this moment of transition disney is in the process of losing licensing revenues that it used to get from netflix as

it pulls the content back over to its own platforms as it makes sure it has everything it needs to go direct to consumer come november 12th as it loses the licensing revenues, it's investing more in original content this will all play out as the product launches and we see the subscriber growth. that's why this period is one of transition >> is there a crossover point? i'll start with you and julia. answer the same question is there a crossover point at which direct to consumer revenues exceed the revenues that are collected through the traditional sort of cable subscriber fees, and if so, how soon is that >> i believe there's a crossover point. the question is when and not if. i'd say at the minimum that point is at least three or four years ago in the case of disney. julia brought up the good point of the interim sacrifice to forego licensing revenues. we think the companies estimate for that -- company's estimate

for that foregone revenue could be conservative. the question is how much time does it take to ramp up the service to a break even point while investing aggressively in content. that's a moving target depending on how much they decide to depend on content and marketing, things of that nature. my guess, tyler, is that you're looking at at least three or four years out. >> julia, there is a crossover point. it might be three or four years down the road? >> there's a crossover point, but i want to point out where declines in the traditional tv bundle with cord cutting are going to be compensated for by new revenues from streaming and skinny bundles i think we're also going to hear a little bit about a crossover point and how much we're seeing the new revenues compensate for the other declines >> all right thank you. julia, tuna, and disney results come out in a couple hours' time the bond market now. rick santelli is tracking the

action at the cme. >> hi. that bond auction changed everything ten-year note auction was not a good auction i gave it a d in terms of grade. it changed the curve brought in selling into the futures. many started selling futures a bit nervous. look at a two-day of two-year, we came back quickly look at the further down the curve. the ten-year, look how how it rocketed past its settlement in a very aggressive fashion. therefore, the two-day of tens minus twos granted, we only added a couple basis points on steepening the point is how responsive the curve is and remember, the last thing the fed wants to see is a curve that gets flatter or inverted finally, the dollar index. we could see a lot about it. i say it's really stable this is a november 1st chart it just crowned up at the top. look at the left we're trading above that fortunately holding the top of a

23-month reign >> we'll talk to a ceo who has his finger on the pulse of real estate and the economy the head of cbre will join us and weigh in on the impact of the trade battle that and more when "power lunch" cos ghbamerit ck ♪

♪♪ ♪♪ ♪♪

our next guest has a very good pulse on the global economy. runs cbre group, the world's largest commercial real estate services and investment firms. shares down about 1% after starting the day higher. that's despite posting strong earnings joining us is the president and ceo of cbre group. bob, welcome back. good to have you with us as always >> good to be here, tyler. >> what are you seeing in your business let's start in the u.s is one region hotter than another? one sliver of your business hot and another less so? tell us about it >> what's gone really well for us here in the u.s. and around the world in the last 90 days but really in the last year has been leasing leasing has been really strong

or corporate outsourcing global workplace solutions business has been strong. good growth in both the businesses a lot of that is being driven by the fact that occupiers are more and more focussed on using space as a tool in the war for talent to attract, attain, and make talent more effective, efficient, and motivated that's been a really positive thing for our business >> take me over to asia. what are you seeing there and specifically in china where you have some presence and how would you see a trade tangle affecting that business? >> our business in china is providing services within china increasingly to chinese companies. the fact of the matter is over the last year on a 12 -month basis, when you look at the 12 g geographic divisions we have, on a profit basis, that's been the fastest growing of our businesses because again, we're

focussed on providing services to companies in those areas in china at trading goods in and out. of course we watch that closely and we're concerned if the trade circumstance has an impact on the economy overall. those countries as we talked about, make up only about 1 % or 2 % of our profits >> how has the market for companies that are sort of. >> there's two things that go on

with how does it fit into your business odel being asked. >> start with the design of the

space. it's typically open office a multiple of different types of use. a lot of light in the space. address the free wireless piperless activity oriented technology supported to get out amenities. it's a very different experience the best thing you might think about tyler that people often compare it to would be going into a starbucks and having office space that has that feel. and people are really attracted to that. >> very interesting. all right. bob, thank you i appreciate your time bob ocbre. to bes are bouncing back after yesterday's selloff. we are talking technicals next on "power lunch" this is my headquarters.

this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more.

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trade tensions fueling volatility in the market stocks back in the green after two days of losses where do we go from here let's turn to the charts we're joined now

bill, great to have you with us. you have three charts. let's start with the s&p 500 have we done any damage to this chart? >> no, melissa i think we're fine this rally off the late december lows has been really strong. in fact, the last time i was with you in studio on march 22nd, we had a day similar to yesterday down 400 or 500. i said this rally is okay. you'll go back and retest the old highs. that's what you've done. if you look at what this projects off the default, i think the s&p could go to 3200 that's the target off the late lows when you look at this critical short-term rally, even with a day like yesterday and, you know, some of these trade tensions it still looks like it's strong. >> let's move on to the nasdaq then because this is a chart that saw some pressure in yesterday's session. biotech and semis really underperformed relative to the other markets in yesterday's

session. so, bill, what do you see here >> well, the other key trend you want to pay attention to is the rally off the march 2009 lows. and even though the rally is overall positive, what may be problematic here is that some of the longer term trends are not as bullish so even though the rally off the late -- the nasdaq 100 could go to 8100, the march 2009 rally is saying, somewhere around the 7800 level should be the high. so this is what i think sets up the next probably two to four months to be really interesting. you have the late december rally that is still really bullish as we want to put another major leg on to the up side but you have those march 2009 targets out there that say, hey, we could be putting a cap on this right now. so that is kind of the drama that's going to play out over the next two to four months and that's going to set up

everything in terms of the way the market trades for probably 12 to 18 months after that >> part of that drama will be how the semis do it was really pummeled yesterday and the day before, bill what do we see here in the smh, the etf that tracks the semis? >> the semis have been a great trading market we've done really well here. bought it around 100, 102. played it up to 120. we got short last week around 117. took $4 or $5 out of it. on the wide ride now, the range in the semis is like 100 to 125. if these trade issues get resolved, i could see the smh up, you know, 122 to 125 if we have more trade tensions, then i think you'll see a move down to 104, 101 which is basically fair value off the late december lows we're shorting it here if you said what would i do right here i probably would try to be a seller around 116 and play that move down to 104, 101 where i'd

buy it again and use the stop as a close above 118. >> down side to 104, up side to 125. s&p 500, 3200 is your level. bill, great to see you thank you for the levels appreciate it. >> my pleasure, melissa. a new rule aimed at lowering drug prices is next on "power lunch.

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we sigh here the trump administration today

saying it will require drug companies to include the price of drugs in direct to consumer tv ads that sounds like a good idea, it could be complicated because everyone has a different insurance. we're looking at the pros and cons of this >> something complicated with drug pricing long lists of potential side effects from the medicines and now another thing to worry about at the end of the commercials, how much your drugs are going to cost it's part of the blueprint to lower drug prices. now they say transparency will help put patients in charge of their own health care. the pharmaceutical industry largely doesn't like it. the trade group pharma says it could be confusing for patients and may discourage them from seeking needed medical care if they see the list prices of medicines before insurance the rules apply to drugs that cost more than $35 a month johnson & johnson already started including price information in its ads for xarelto showing it costs $448 a

month but most patients won't pay more than $47. j&j says it shares the commitment to transparency but more broadly, pharma may challenge the legality of the rule and it's unlikely to truly affect drug prices anyway. >> in 60 days we'll see this with every drug commercial >> that's what they say. pharma also takes issue with the length of time it will take. >> i like their thermometer there that shows what the -- what you'd pay if you had no coverage versus what you'd pay on a scale there between $0 and $47 if you get most, i guess that's what it is. a small type i can't -- most patients pay between -- >> would this be in print and on television >> it's specifically television commercials. that's going to be the tv ad >> not the only tv ad. that runs at the end of the ad >> are there requirements for how long it has to see on the screen we've seen the side effects, they scroll really fast and you can't talk about them. >> talk about them really quickly. >> they have specific language

they're requiring. j j&j's came out before this rule came out so they may have to tweak it >> thank you let's take a check on the markets. we've got the dow, the nasdaq and s&p 500 in positive territory after two days loss ofs. we'll see if this holds into the close. thanks for watching "power." "closing bell" right now it is the final hour of trade. i'm wilfred frost. >> i'm sara eisen. hopes for a trade deal help stabilizing the market today dow up more than 120 points. we'll give you the latest details. disney earnings due out after the close. captain marvel, espn subscribers, "star wars" and much more will be in focus we'll break down those numbers as soon as they are released >> lyft getting hit after negative reports surrounding uber's ipo what to expect for uber pricing tomorrow "closing bell" starts right now.