very long-term and not to have to worry about somebody trying to short you here or there and being able to think how to build kind for the long-term >> well congratulations on your success. thanks for bringing daniel in. good luck. that does it for us on the exchange i will join tyler in a minute on "power lunch." maybe he had a kind bar. "power lunch" begins now >> all right, brian, thank you very much and we'll see you in a moment a lot happening this hour. welcome, everybody and here's what's new at 2:00 at "power lunch. following breaking news, get to that in a minute, but banks are jumping, sending the dow back to 29,000 we are going to break down the best buys for earnings season and explore the question of why it's not a good time to take products off the table plus, the beyond meat boom the stock is up nearly 50% in the past week. just one of the big momentum

movers this month. jim cramer's going to be on here to tell us what these par boir bolick moves mean and tillray announces a shake up we'll talk to the ceo, brendan kennedy, to ask him about his plans to make this hot stock hot again. say that five times fast "power lunch" starts right now stocks are retreating today, it was above 29,000 before sinking just moments ago before the breaking news, reports of china tariffs staying in place until after the 2020 election. kayla has some new details on this developing story. kayla, i thought they were supposed to sign this deal tomorrow i guess it's still on, but you've got some details. go ahead >> signing is sill on, but the principles have maintained ever since this was reached that any

future tariff reduction would hinge on china's compliance with this first phase of the deal an administration official telling me moments ago there's no agreement on a path forward with regard to tariff reduchotin to between mid december and today, there is still no decision on exactly which tariffs woul come off and when and then there's the question of when these phase two negotiations on things like state owned enterprise subsidies and other thornier issues would begin. president trump has tweeted he would be heading to bap jibeiji to start those conversations, but i'm told by people at the white house saying that trip may happen closer to the election to build momentum going into the 2020 presidential race if that were the case, then that would give the administration an event of sorts to build a tariff reduction schedule around. but all of this is up in the air because there's so much time between now and then and

certainly as we've seen with these negotiations with china, anything can happen. >> correct me. do we know literally, has anybody really read this agreement between the united states and china >> there's been a fact sheet that's been published to the website. there's an expectation that tomorrow after the signing, the final text, the full text from that deal would be released in some form. certainly that's something that lawmakers and stake holders have been demanding, but we'll see exactly when and how we get that thep >> thanks very much. keep following it for us >> the dow has lost nearly all its gains. only up 21 points. s&p 500 and nasdaq are negative after hitting new record highs today. well outside of that, earnings season kicking off today with some of the big banks. with those reports, it's not just how much money they make, but how much they're buying back with that money. bob has more on that >> that's right. f earnings are good, but

buybacks are strong. i want to note here, we lost ten points on the report kayla just mentioned there. we don't lose because i didn't there was going to b expectatio expectations, there's still plenty of room for negotiations about if and when future tariffs are removed. let's talk u about the banks here with good numbers from jpmorgan, city, disappointment from wells fargo. citigroup highest level since 2008 wells fargo has been struggling for the last four years on its scandals let's just take a k lolook at ws important. we don't talk about fees much. people complain about them atm fees, checking fees. up 21% for jpmorgan. a lot of banks, fixed income, but a terrific quarter equities up 15%. net interest income. this is the difference between what you collect on interest and what you pay to your dpepositor.

i want to mention the buybacks j.pmorgan and citigroup are amon a small group that are very invested in buybacks in the last five years, jpmorgan has reduced shares outstanding, citigroup by 28% and both have continued buy programs and mentioneded this in their press release and are continuing into this year. here's what i'm talking about. this is citigroup the last five years. the amount of shares outstantding this is down 28% in that time period the last five years and you can see in the last year and a half, they're continuing to buy back shares how much maybe 10% in the last year, year and a half now thai hey've had a good quarr five quarters maybe but when your share count is reduced so%, this is a significant impact on earpings and again, guy, you

need to consider the buybacks out there when looking at the overall picture. back to you. >> thank you very much the dow hitting a new record high today and back above 29,000 if only briefly, it slipped back down below that right now. what are the best ways to ride the rally as earnings season gets into full swing mike is head of qs investors, kenny, senior market strategist for slate stone wealth and a cnbc contributor welcome. you both think the equity market can move higher from here. mike, you say the equity rally is likely to continue into its 11th year, but beprepared for a style rotation you say 3600 is an achievable number in your view but my question for you bulls is how do i hedge that and protect the profits i made in 2019 and earlier? >> the reason we think there's going to be a style reation otai last year only two sectors

outperform ed the s&p out of 11 communications, which is part of the market and tech outperformed by 20% tech has gotten so big that the top five stocks are almost a quarter of the total s&p 500 just in those couple of names. you have to move out of those areas and where you can p participate in the market, but actually at a more attractive price. so we're looking for a defensive value. >> so ligyou'd lighten technoloy and move into defensive values >> utilities, real estates, consume ir staples areas with big dividend payments high earnings trading at a lower price to equity than earnings. >> i'm going to stir the pot here he says i like tech. because of the 5 ag revolution and what that will mean for the whole sector >> true, but tech is a big space. beyond just these five names certainly it's going to change

the world once again so there's got to be a place that people should be in but like you said, you have to be very diligent so you have to peel some off the table and stocks that have outperformed, keep the core position then use that cash raise by doing that to reinvest either in other parts of the tech space and or some of the other sectors. energy is another sector, we can talk about it all we want. there's a great opportunity. might be money you have to be patient with, but -- >> brian knows a ton about energy and its particular issues it faces >> a bit >> right now their debt issue is huge >> that's right. >> and if they're not contributing to earnings growth, you look at an estimate that's going to come down .7 also and we've got this headline which has crossed that the tariffs may not go away even with the deal being signed but yet i agree i know what you're going to say, that there was no deal in place

to reduce those tariffs. >> did the market react, we had this conversation in the green room in my mind, you get any headline that appears to be b a little negative and you see what happens. there was never a conversation about elimination of tariffs, even in phase one. they've reduced them but are still keeping tariffs and that was never going o change he e never said he was going to reeliminate them >> market lost 150 points in 12 minutes. >> because it happened quickly automatically. they swing it around but 150 points on the dow. look what we've come from. nothing for anyone to get themselves all nervous so the market, do you agree with what kenny said? that the market is vulnerable given its headline risk. question number one. two is if there are gains this year, are they going to be front

loaded in the first half of the year and does the second half become dicier? >> it's all about what's in the price now. expectations are high. tech is great. the best profits we've seen in a generation tech's up 800% since the 2009 lows it's up 50% last year. what's not in the price. expectations are so high that even a slight miss and a couple of those tech companies that we all like could send the market down and create volatility >> that's why the market did react. all your points are well taken but here's the thing if we are so-called priced to perfection, if we get a speed bump in trade, in oil and gas, in the -- whatever that bump is, has got to slow this car down. >> well, you would think so. and we keep saying, how long have we been saying and every time we say it goes up 3, 4%, right? >> i think tom brady retired >> right but i think to answer your

question is it all front loaded is a lot is going to depend on what happens come the summertime and we start to see who's risen to the top, who the democratic candidate is, what that platform looks like, what sectors are going to be affected if you get someone on the far left like bernie ar warren, you've got to start thinking about pharmaceuticals, health care if it's someone who's more in the center then less so. so i think -- >> how much of a race is this going to be, really? between whoever the democrat is and whoever -- >> wow, that's a whole other conversation how long do we have? but you're absolutely right. how much of a race >> how much time do we have? >> not long. >> coming back to those expectations on what's been one of the manl catalysts. the fed last year, the year before that, tax cuts. on the, doesn't matter who the democratic candidate's going to be it's going to be higher taxes and higher regulation. >> if you trace the entire gain

of the market to the last four months to the expansion of the fed's balance sheet, they overlay almost perfectly so what happens when that balance sheet starts to contract >> and look, the fed son hold for 2020 less than 200 basis points >> i'm talking about balance sheet expansion. what they say is don't equal qee which we know is qe. >> it started. >> putting in the market because they realize that because of the new dodd frank regular laces, there needs to be b more liquidity in the market. >> that's been a question we've been asking since they skatarted qe a dozen years ago what's going to happen when they start to pull it back? >> got to wave a white flag. we're done ch thanks, guys >> all right speaking of the dow, boeing shares are a little higher today even though their order number fell to the lowest level in decades. american airlines further putting off a return of the max. phil lebeau joining us from atlanta with more on boeing.

>> brian, let's start off with boeing's order numbers these were ugly numbers. for the year, negative 87 for commercial airplane orders for boeing the lowest in decades. in fact when i reached out to a boeing spokesperson, he said i don't know the last time we had negative numbers certainly not in the last 30 years. here's the fallout from that because they haven't had the max, they haven't been able to sell it, deliver it. their deliveries for the year, 380. less than half of the record number of deliveries from airbus of 863 and as a result, investors have opted forshares of airbus relative to boeing over the last nine months. remember, airbus is increasing a 320 production in alabama this year finally with regard to american airline, it's moving back its plan to fly the 737 max. it will now come back to the schedule june 4th. used to be april th.

canceling 8,000 flights. that leaves southwest as the only u.s. carrier planning to fly the max in april don't be surprised if they move theirs back to june as well. >> phil, want to ask you about some newly released messages from boeing employees that look really bad again in the light of the lion air crash i just don't know when this flood from boeing is ever going to stop because it just seems to continue to get worse and make the company and its employees look more and more callous >> let's be clear here this is not a new release of a new document this is one of the documents released last week doesn't make it any better what's different here is it is unredacted we can see which airline they were talking about and they're talk iing about lion air they are saying now friggin lion might need a sim to fly the max

maybe because of their own stupidity. i'm scrambling trying to figure this out why so inflammatory? lion air is the first with the crash. november of '18. this was sent more than a year before that. this gets to the heart of the messages that came out last week that's toxic culture, at least when it came to the development of the 737 max >> thank you very much, phil from atlanta come up, what do the boeing 737 max problems and houston astros sign stealing scandal have in common both could be examples of businesses cutting corners to gain a competitive advantage up next, what needs to happen to stop any misbehavior in sports and business plus, it seems like nothing could steal their thunder. jim krcramer about to gin us wi

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welcome back stocks are retreating from record highs and the dow losing steam. it was up as 150 points today. some trade headlines took a toll once again joining us now with more on the market as and these momentum stocks that have gone wild from our san francisco bureau is jim cramer of course out there for the health care conference jim, great to see you, my friend there's so much to talk about.

momentum and the conference, but i want to ask you to begin with this, these trade headlines, it's interesting because there wasn't anything in the deal that said tariffs were going to be rolled back any way, but the market seems to be jittery at this point >> look, i think the market was looking for a reason to sell off. this is good news given the fact the tariffs stay on. because they want to have some sort of able ility to say okay, china, you made these big promises, where are the buys the chinese have been known, i don't want to be polite. they double crossed us all the so why shouldn't we keep the tariffs on am i supposed to start saying stop trading, this is bad news i could say this is good news. this was a very positive statement. tl going to be a lot of president obama tiffs coming out tomorrow people are k loobing to sell things, brian and they take a positive story and make it negative but do it all the time.

why? because there are a lot of morons out there >> shouldn't people want to take some off the table isn't that smart >> yes i think it is, ty. here's my problem. when you keep going up and up and up on the same information, ty, that is not sustainable and we know there can be air pockets when it happens. now for the banks. they were selling at low multiples, but when we get to some of these selling at sky high multiples and you start seeing what are good numbers, that's not enough. >> all right, jim, let's go to the reason you're here some stocks are still roaring into the 20s so to speak. you know these moves by heart we'll show tesla, up nearly 30% beyond meat, beyond belief up about 60% this year i heard you this morning on cnbc said people are buying beyond meat on no news. i could have thrown five or o

six other stocks up there like that that you'll probably have on mad money tonight is this momentum deseved i do a lot of work for mcdonald's they've been lukewarm about the beyond meat test we thought then they doubled the size of the test and are sarting to say this could be gigantic beyond meat, b the market cap too small if mcdonald's decided to roll out beyond meat. they have no ability to do it, but it makes you feel you know what, this thing is for real tesla obviously we're going up on the same news over and over again about china and ev and how much better than doing than the other companies. you know what, i absolutely believe that this is true. but why should we keep going up? now uber is something new. we know that they have the ab ability to off load some very bad uber eats orders in order, some places just not working. they could combine them with grub hub then as mark said earlier on the network, it would

be worth a huge amount to uber and that stock deserves to go much higher. >> let's switch to larry fink and his annual letter, which is drawing a lot of attention this morning in which he says at the core of blackrock's investing properties in the future will be an evaluation of sustainabilile, carbon footprint and a company's policies and practices with respect to climate change. it mimics or echoes a lot of what's going on in europe among institutional investors. what do you think of this as a principle and a way to do business >> well i think fabulous i think it says what the future investors are thinking when i meet with younger investors, robin hood people, people who trade, millennials, they ask first.ing the environment? you've got to make one of your stake holders, not just your customer, shareholders, workers,

but the earth. so i think this is an admission by larry that we have to do it, the deal book piece that andrew did this morning was so fabulous and his interview with larry is amazing. remember, we shouldn't just talk about the headlines. he has thought about this thing so long and so hard and it's almost as if list b b, he's trying not to be emotional, but he has got to draw a line in the sand between the spoilers and those who care wow. what a brave position. i love it. >> and you wonder, jim, where oil and gas might fit into that. he didn't say sell everything. there's hope >> i spoke matt gallagher from parsley. you know parsley they are leaders of trying to get flaring down of taking care of the environment. there's a lot of work that oil companies can do to lower and make their footprint a little smaller rather than saying what can we do, we're carbon based.

that's not enough anymore. we need to hear from all the oil companies that they're committed to not, not to get flaring down from 20 to 30%, that's crazy i'm really tired of hearing listen, the government doesn't care about it. why should we. the government isn't in charge of it anymore. it's guys lix fin krk. >> who do you have on tonight? >> well, first of all, we've got what i regard as -- dexcom and medtronic. medtronic is really, i talked with with omar ishrak today. this is his last jpmorgan conference what a legacy since 2011 then lexcon, just a miraculous kind of device that is doing really good work let me swrus say right now, i've got exciting news. after i'm here on thursday, i'm going up to redmond to speak to

satya nadella. >> that is going to be very cool >> i've only worked for about ten years to get that one u. >> you deserve it. that is worth waiting for. jim cramer, thanks >> very excited. >> you should be as we all will be, too. thank you, jim alphabet, just a few billion dollars away from joining apple and microsoft, the after mentioned in the trillion dollar club, so which of these 13 digit stocks is your best bet? our traders will give your their picks and tilray share, stock down over the past year. but it has had a nice little puff up recently now that the hype has died down, is the stock ready to resume its run? the ceo will join us on "power lunch. ♪

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welcome back to "power lunch. is the trillion dollar club about to welcome in a new member alphabet closing in on a milestone market cap which would put anytime the same league as apple and microsoft so which of

these trillion dollar trades look better right now? let's bring in the team. quint, let's start with google's valuation. trading at 24 times earning which means it's cheaper than 34 times. so from a valuation perspective, does it look attractive to own >> no. in short, basically, 24, our calculations say 26 based on mats but thai growing those earnings at 17% which as jim was talking about in the previous segment, it's priced to perfection so any correction with earnings or any lowdown in earnings is really going to hit this stock hard. we like the company, just not the stock here we encourage investors to be patient. there will be better prices ahead. >> bill, what about the chart? >> chart looks great i've been talking about this breakout in alphabet and now we're running. i'm targeting 1550 to the upside

higher 200% retracement from the mid last year drop off so i think 1550 is an area to keep an eye on a lot to support at 1360, 1370 as long as it stays above, path of least resistance is higher in the longer term. >> for more trading nation, head to our website or follow us on twitter. brian, back to you >> thank you very much still ahead here on "power lunch", pinterest is winning in social media popularity and investors are loving it. the reason shares are up more than 9% today. tilray, it's soaring higher. the ceo will join us next. talk about what's next for the cannabis industry this year after what's been a tough run and why the major league baseball cheating scandal could serve as a lesson to corporate america. plsz ba"power lunch" back in tw.

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welcome back, everybody. i'm sue herera here's your cnbc news update presidential contender elizabeth warren is demanding a federal insider trading investigation into president trump citing media reports that trump told guests at his mar-a-lago resort to expect a quote big response to iran soon. warren's letter to the regulators notes that shares of north rupp and lockheed martin rose ahead of the strike on iran homes and homeowners are living on the age along lake furfu huron destabilizing at least one home with b about five more in danger the capitals have resigned nicholas ba

the capitals have resigned nicholas balas backstrom to a d. he was instrumental in helping the caps win the stanley cup u in the 2017, 2018 season and talk about a feel good story. this little guy, 6-year-old john oliver, received a standing ovation when he returned to school last week he recently finished his final round of chemo after a three year battle with leukemia. such a brave little guy. >> little tiger. >> i know. that's the news update back to you. >> hard not, you know -- >> i know. >> i'm like literally, it's a 6-year-old boy good for him and the whole family and the school for doing that i'm going to move on because otherwise, i'm going to need kleenex. good for him congratulate much love. the markets are off their highs of the session, but also their lows when the headlines crossed that these tariffs may not come off

even with a deal until after the lech, the market about 150 points in a matter of 15 minutes. we've now regained about half of that you heard jim cramer say there really wasn't a deal in place any way to kill the tear i haves even with a deal so maybe perhaps it was computers, tra traders reacting to that headline either way, much more on this all day long 2019 you could call a pot pocalypse. things could be changing for the better in 2020 marijuana company shares are high today with tilray up double digit announcing a new ceo and cfo and joining us now is tilray's cfo, brendan kennedy. good to have you what does the executive change mean for tilray? what can the new hires do that

their predecessors could not and its investors? >> well in terms of the cfo front, we recruited mark back in january of 2019 to do something impossible something that had never been done before. to be the first cannabis company to ipo it was his fourth ipo and we ipoed on nasdaq in july of 2018. and so he did the job that we brought him in to do i coaxed him out of retirement to do ta job originally, it was supposed to be b a 12 month gig. he's been in the role for 24 so we had been looking for someone to come in and fill his shoes oaf t over the last year. we brought in michael from farmica and coors.

we also announced a ceo hired today, john loven, comes to us from rev lon deep eck appearance there over a number of different years. leading their u.s. market and so xooim excited to have them on board. >> how does a consumer products executive like the gentleman from revlon, operate in your world? do you u view yourself as a consumer product >> i do. ultimately, cannabis, it has a mix of cbg qualities as well as pharmaceutical so in 15 county i around the world where tilray products are vab, they're available in pharmacies so portugal and canada, where medical cannabis is legal in the pharmacy in canada, in terms of adult use, i really see that product ultimately as a cpg product. it's why we'll be seeing so much from the cpg companies from

tobacco companies sh, from alcohol companies in this space because it is disrupting their traditional business models. >> if you look forward, ten years from now, five years from now, you pick, what will the revenue mix be between recreational and medicinal a >> you just asked the most difficult question you can ask a global growth opportunity in term of medical. ten years ago when i started, there were 15 countries inland world, now there are 41. i think it goes to 80. so there's a know blgable global growth opportunity in term of medical cannabis we'll go from 20% of the countries to 40, 50, 60% of the countries that legalize it unknowable all that's focused on cannabis over the last year or two, it's about two countries. 1% of the countries in the world that legalized cannabis for adult use.

i think we'll see four to five countries in the next one to tw years and what i don't know over the next ten years is do we get to 20 countries or 40. so if you had to hold me to a number, i would say roughly 60-40 medical to adult use really based on the number of countries. >> brendan kennedy of tilray with a new management team and consumer products on the horizon. we appreciate your time here on cnbc and "power lunch. thank you very much. >> thanks for having me. >> to the bond market we go and rick who is tracking the action at the cme hi, rick >> hi, tyler of course those headlines that are market moving in equities, of course, looking at intraday of tens. dropped back down what had been the low. dbt make a new low or hasn't yet. right at 181 down four.

the short end two year note yields are down two. 180 is a significant level and even though there have been a few breaches of that as you see on this early december chart of tens, that's the area traders are going to pay most attention to now to the foreign exchange side there's an intraday of the dollar index you can see the sharp drop but if you open it up to one week, what's fascinating is 9730 has been a recent bottom several sessions in a row. it's holding that level. many traders will view on which side of that we close on and look for momentum to ensue back to you. >> rick, thank you so much >> coming up, a live report from the big health care summit in san francisco. plus on our tasting menu this day, a pirnteresting development in social media, more sndiey magic and the house loses, but just this once oh, your mom just texted.

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shipsticks.com saves you time and money. - [narrator] at southern new hampshire university we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

the jpmorgan health care conference taking place this week and meg is talking the all of them, ib including the ceo of bio technology hi, meg. >> hey, tyler. well viruses are an incredibly important public health need but it's not an area that big pharma invests a lot of money in. >> that point is exactly why we're doing what we're doing because the pharma industry has reduced its interest on infectious diseases. there's a huge need for better drugs and that's why it exists >>. >> but if you look elsewhere in the market like gilead, which developed a cure for hepatitis c, it was dramatically rewarded but then punished when it couldn't come up with the next >> i think hepatitis b will be dichbt from c and if we hope to find a cure and if we do, i don't think it's going to be a

hepatitis c kin et ibs where you have where you have a huge market and you cure everybody and the market falls off it will be more slowly many of the patients aren't yet diagnosed. >> so hepatitis, hiv, flu, and we've got more coming up next hour with the ceo of know vnovas >> so you had pfizer and novartis in the same day about $500 billion in market cap in just two interviews >> everybody wants to be on cnbc, what can i say >> everybody wants to be on meg. thank you very much. and today's taste iing menu some of the other stories. are you ready, tyler pinterest shares soaring more than 10% today on a new report saying it's become more popular than snap chat e marketers say pinterest had 82

million users last year, surpassing snap, making it the third biggest immediate platform behind facebook and twitter. stock up around 15% since going public last year, but pinterest, snap chat, they're all very different companies. >> pinterest is crafty >> more of a shopping site you u pin something you like i see it i like it. i want to buy it because you got great style. >> you bet >> next, disney plus feeling the magic. new report shows the services mobile app has been down loaded nearly 41 million times just launching just a couple of months ago also generating animatedd $97 million. disney has more ways to make money than just about every company. >> bottom line, if you're a lazy parent with kids of a certain age, this is a must have it's been a massive few day

for sports betting lsu's win last night over clemson shows the house doesn't always win as a matter of fact, the public winning big on this one. accordi ining to some reports, o 90% of bets were on lsu. don't cry for the kwacasinos ye because saturday's tennessee titans victory over the ravens gave the sports books one of their biggest wins over the entire season. one apparently took a 420,000 bath after betting on the favorite baltimore to win. everybody had baltimore. they had them either with the points with the money line. they had them on all kinds of prop bets. and they were wrong. >> well, ravens laid an egg. >> by the way, congrats to joe at lsu borough from southeast ohio. opioid ravaged community really good to see that. good kid >> i've never seen a quarterback

throw as accurately as he has in those last two games >> and his hair never moves. >> it is good stuff. we've got a market flash on amazon and fed eck and frank holland has it >> shares of fedex moving 3% higher on news that amazon will allow third party sellers to use their ground delivery after the company temporarily halted use during the holiday season. an any paulter reports that fedex's ground and home services will be eligible starting today at 5:00 p.m. this is according to an e-mail that amazon sent to merchants that was viewed by cnbc. a spokesperson confirmed the company is resuming that ground delivery and they say that was always the plan since fedex ground delivery has met their standards for on time delivery again, shares of fedex moving about two and three quarters of a percent higher back to you. >> thank you very much coming up, the astros manager and gm fired over a sign

stealing scandal two individuals taking the fall. now usually in corporate scandal, the company takes the hit. the individuals mostly remain anonymous. does corporate america need to follow baseball's lead we'll be legendary terrain in telluride,

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major league baseball suspending general manager jeff luhnow and manager a.j. hinch in addition to fining the team and stripping it of its first round draft picks the next couple of years this comes off an investigation of a sign stealing effort in 2017 which was a championship year for the astros. the astros in turn after baseball sanctioned them fired both individuals when corporations misbehave, the stakes can seem costly but individuals often go unpunished and many companies view it simply as a cost of doing business, the fines, that is, so, is the risk worth the potential reward of higher profits? michael pair agren gregren andr

eric gordon join us today. thank you very much. michael, let me begin by asking you, did the punishment fit the crime or should it have gone deeper into the ranks of the astros organization down to and including players who were apparently involved in it? >> that's the open question here clearly the punishment is aimed at the people most responsible for what was perceived as the fraud or malfeasance major league baseball clearly pointed the blame to the senior executive officers and that's where corporate fraud enforcement goes where does the buck stop in this situation it stopped at the general manager, the ceo, and the field manager. there are open questions as to whether or not the individual players should have known this was wrong and should have said something about it that will remain, i think, unanswered. >> eric, let me turn to you and ask you about the analog to a corporate situation where, in

some cases there's misbehavior or wrongdoing and a company is then fined or sanctioned for it. they pay a fine. they neither admit nor deny guilt. they move on and often the fine is only a fraction of the amount of profit they made from whatever the malfeasance was is this a case like that, or is this one different >> i think this one is different. and in the corporate world, yeah, they give up their doughnut money for a year or something. here's the difference, tyler corporate ceos seem to be more clever than baseball ceos. corporate ceos are somewhat like mafia dons the mafia don never pulls the trigger, is never there with the gun. he hires somebody who does it. corporate ceos have the same setup. wrongdoing is usually done a layer or two below them. the ceo insulates him or herself from it and says, wait a minute, i had no idea. >> you know, the thing about this is though, michael, let's

look at boeing and i'm not going to pick on did you know neennist he leaves under controversy, gets $60 million some people say it's not a golden parachute that's deferred compensation that was owed to him okay, it's owed to him because they had a contract. 99% of workers in america, unlike tv anchors, ceos and baseball and football players, don't have contracts for them to hear that kind of stuff, that someone's going to get paid except the fact that they were fired ticks people off. >> well, i think corporate board members across the country are looking now at the concept of claw backs if they didn't have in their executive compensation or agreements before, they're having them now to deal exactly with this situation. but the other thing to keep in mind is the reputation damage to the executives involved. will they be hired again how do they get rid of the stain on their reputation? where will they go will they be employed again? it's difficult to dismiss the

severity of that harm. >> eric, let me turn to the volkswagen emissions cheating scandal and ask you to talk a little bit about that one because in that one ultimately the executives who were in charge of the company at that time were taken out. 30 seconds, please >> yeah, that one was one where they actually did go after the individuals. there was evidence that there was no way this could be happening without that ceo knowing what was going on. so, when you really have very strong evidence, evidence that there's no way the ceo didn't know, then they go >> all right, michael, eric, we thank you for your time today. appreciate it. >> thank you. anthk you for watching power lunch. the dow is up 57 points right now. >> closing bell starts after this short break (janine) i used to be a little cranky.

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because you're better off healthy. welcome to choez "closing bell." at the dealta post shares are trading higher will we close above 29,000 for the first time we've got 59 minutes to find out. >> we certainly do good afternoon leng let's have a look at what's driving action it's not just delta numbers. jpmorgan, citi and wellsar