flow generation strong. >> again, another day the dow is above 29,000, it's at 29,044, it is going for its first ever close above that historic level. investors continue to take in the events in washington and that's where we end. the exchange begins now. >> i am brian sullivan a milestone moment for the administration, the president and maybe the nation phase one trade deal agreed to on december 13th about to be signed trade of course has been a cornerstone of his economic agenda and the centerpiece of his campaign all of this coming on the same day that the house will send articles of impeachment to the senate we have not seen the text of the deal yet, but we know that it addresses ip protection, forced technology transfer, ag buying as well as manufacturing purchases, financial services and dispute resolution joining us now are derek scissors, economist at the american enterprise institute and joel tractman.

professor tractman, the initial criticism of the deal even though nobody had read it yet was that it may not be strong enough on technology and ip protection it appears there may be more in there than we believe. what would you like to see from the deal when you read it? what would make you assured this was a good deal for the united states >> since 2001 when china joined the world trade organization it's had lots of commitments on intellectual property protection, including a commitment not to require transfers of technology as a condition for investment the compliance with that has not been good, but it's been enforced at the world trade organization to a certain level. what you might see in this agreement is repeats of those commitments, maybe more specificity on some of those issues i doubt that we will see more specificity on how to enforce

those things, but presumably there will be a provision that says that if president trump determines on his own that the commitments are not being met, he can put the tariffs back on that's what's hanging over the chinese head. >> derek, back in 2015, i believe it was, then president obama had a deal in principle with china regarding cyber theft and cyber crime with china, which china pretty much immediately then broke whatever deal is signed today, do you believe it will be enforced and enforceable >> i have the vag of actually having read the deal the ip chapter, chapter one, is a lot stronger than the tech transfer chapter, but i think both you and joel have pointed to the real point which is enforcement and president trump cares a lot about the trade balance so when i look at the trade chapter and i don't see really strong enforcement, that doesn't bother me because i know he will enforce that i don't think he cares that much about ip and i don't think -- >> derek and professor tractman

we're going to jump in because the actual signing of the phase one trade deal is taking place in the white house right now. >> and here we have president trump signing the american side of the phase one trade deal. his counterpart, vice-chairman

liu he to his right. some of the people in the room, you see treasury secretary mnuchin, steven warz man, meg gentile the ceo of talorman who is planning to join us at the end of this hour assuming she's able to get out of that room derek, you said you had the ability and privilege to read the document was there anything in there that stood out to you that was either perhaps stronger or weaker than the primary narrative around the deal that we have heard so far >> well, i don't think it's really possible to pin the chinese down on tech transfer, which is chapter 2 and very short. there is actually more text on darian infant formula than tech transfer it's hard for them to agree to admit they've been coercing tech transfer and they are now going

to stop. that's an expected failure in the deal i did not see and i had to read it very quickly and i am not a lawyer i did not see any independent enforcement mechanism laid out for the united states. there is a chapter on enforcement, it's mostly about consultations. maybe the enforcement mechanism is just applied, president trump has applied tariffs before to china and he will again if he doesn't like chinese behavior. >> do we know, professor trachtman, what would be enforceable under this document? so much language in international trade as you know can be so broad as to, you know, sort of be the kitchen sink, if you will, around legality. what would you like to see for american companies to protect their ip what kind of language do we need to see in this >> the problem in many of these ip contexts is identifying clearly the violation and inducing the american companies to actually testify. they may fear retaliation and so

one of the problems with the tech transfer issue is that companies are reluctant to a something except anonymously about what's going on. so it's hard to know exactly how to do this you know, this is not a new problem, this is not something that just arose and presidents before president trump and trade advisers before lighthizer have tried to grapple with it but it's a slippery this i think to enforce. this will not be a formal agreement that you take to court, this will be, as derek said, something that trump points to when he starts to put the tariffs back on. >> yeah, i think, you know, we look at the moment right now, we just had the signing, they showed off the signatures in the document, there were hand shakes all around, derek. i mean, at least part of this, forget about the substance of the document itself, should we take some optimism as the market appears to be doing from the fact that they are in the room, they have signed the document, there are smiles, there are hand

shakes the optics seem good >> yeah, i think the optics are good and, you know, that's a reasonable interpretation and they're going to remain good until we see trade data that says the chinese aren't making those purchases. i'm not saying that we will. i think the chinese will make the purchases over the course of 2020, but i think the reason the market is having positive reaction is president trump man against the trade deficit, in a very big way in2016 and he needed to make progress on it. this progress is a lot less risky than progress through just applying u.s. tariffs. we're seeing on paper the president being happy with the china situation, which means we don't get the possibility of u.s./china escalation. it may not last, but i think it will and i think there's reason to be optimistic at least for the next few months. >> and, professor, what would you like to see happen next? >> well, i think that this looks like a refusal to engage in

decoupling it is an optimistic moment phase two may come along, it will -- if it happens -- address state-owned enterprises and subsidies, some of the structural tougher issues that would cause reform in china. and i think the chinese side is happy to engage in strategic patience and jolly the united states along for another six months maybe to the election or past the election and then hope that some of these things pass over and they don't have to engage in deep structural reform >> do you think that china, professor, is capable of deep structural reform? >> i don't think so at this moment, but i know that the united states is seeking this and, you know, just earlier this week the united states, japan and the european union said we want to see greater disciplines of the kinds of subsidies that china uses so that also is in my mind a

positive sign that the united states is turning to its allies to try to address china in a more deliberate way. >> you know, finally, derek, i will ask you this because you're there in washington. even by washington standards, which can get a little bit crazy, this is a bizarre day i mean, we have this trade deal signed, the president taking a victory lap, republicans taking a victory lap and on the other side you've got democrats signing the articles of impeachment to the senate, they are taking their own not impeachment victory lap but are touting their side of the story. within a two-hour period we've signed a trade deal and we've talked about sending the articles to the senate and trial there. even by your standards this has got to be a historic and unusual day. >> well, by my personal standards it's perfectly normal. look, i will focus on what i know which is that the president made promises about the trade deficit, saying it was theft, saying it was the greatest theft in history and he is going to

run, if this works in 2020 on promises made, promises kept i told you i could cut the trade deficit and i did. if it works. and that's going to be a weapon he will use against the critics including people calling for his impeachment. i'm not saying it's right, i'm saying as a matter of making a political promise, this event strengthens the president's hand against people wanting to impeach him, even though they want to impeach him for completely different reasons. >> all right gentlemen, appreciate it thank you very much. have a good day. great insight. all right. now that the signing is over, we can get to kayla tausche who was in the room, witnessed the signing, she was there what was it like to be in the room there is a lot of smiles and hand shakes behind you >> reporter: there were a lot of smiles and hand shakes at least from the u.s. side, brian, as the east room breaks down here and we try to synthesize what we witnessed what is clear is the difference in tenor between the u.s. and chinese approach to this deal. you had president trump talking for more than an hour unscripted

introductions of lawmakers and industry leaders who are poised to benefit from this deal. administration officials calling this a watershed moment for economic relations between the u.s. and china you even had the vice president saying today the change begins this resetting of the u.s./china relationship but president trump made it very clear that these are the beginning of talks, not the end. here is what he said about what happens to tariffs and where talks go from here >>. >> reporter: well, president trump said that there would be a discussion of tariffs when phase two negotiations began he didn't give any clarity over exactly when he would be heading to beijing and when those discussions would begin, but certainly in terms of when it would happen it is likely to happen after this deal goes into effect which is 30 days from now. earlier today the top trade official here in the u.s., the ambassador robert lighthizer,

spoke to reporters and acknowledged that this is not a perfect agreement. it's not an ideal agreement for an administration that was trying to get everything but the kitchen sink, but he said it does address the core commitments, it does have real teeth, it is enforceable, but it will depend on china wanting to enforce it china for its part the vice premiere reading a letter from president xi and said they're prepared to work together but the u.s. needs to treat chinese companies fairly brian? >> you know, this has really been an 18-month nearly nonstop journey not only for the u.s. and chinese teams but for you and our cnbc team as well. is there any indication, and i'm sorry to do this to you, of the next steps do we pick back up tomorrow talking about phase two or do we get some kind of a trade truce, a bit of a break before we move on to the next round of discussions? >> ambassador lighthizer said there would be no escalation, no retaliation as long as the two countries are engaging in good

faith. the deal signed today will go into effect 30 days from today and lighthizer says at some point this spring the u.s. will be able to get a read as to whether and to what extent china is actually abiding by terms of the deal that will help to outline exactly what this enforcement mechanism looks like, whether it's effective and when phase two talks would be scheduled for, whether they would be appropriate at that time so we're looking at at least a couple months, brian, before the u.s. side gets a sense of where things will go, whether phase two could ramp up at that point and what this tariff den u month would look like if it's appropriate to do so at that time. >> kayla tausche literally in the room we appreciate your on the ground and excellent coverage not only today but for the last year and a half. well, that trade deal has investors cheering today as we charge toward record highs once again. bob pisani at the new york stock exchange we can't attribute all of this to trade because the market was up the last couple months, we have the fed, their balance sheet expansion, buy backs,

general optimism, but it's kind of the trade cherry on top, if you will. >> it is an important moment, a little bit of a sigh of relief, with he finally did get a deal at the signed her. a little bit of sell on the news, the last 20 minutes we've been down, jpmorgan, intel, qatar pillar the big request he can we close over 29,000 on the dow the question is what's next, guys is it time for a breather right now? that's sort of the main question down here. we factored in a trade truce, we've factored in a neutral fed, factored in a strong consumer and no recession in 2020 and we are even factoring in the possibility of a global bottom in the economy, still a little bit of a controversy on that those are the four issues that moved the market, less uncertainty, no wonder the market is at new high and now the question is will this improve the tone of earnings commentary we need that to happen because numbers keep coming down for 2020, q4 is doing a little bit better the financial earnings reports

today, black rom new high, out of the ballpark home run, bank of america that was a little bit of a beat, you see that selling off. goldman was confusing, there is a litigation charge in there but that stock is trading up u.s. bank corp. about in line but, again, a little bit of confusion in figuring out the bottom line. pny was a beat even with the beats these stocks have had nice run ups and are selling off a little bit today one thing i want to point out, black rock an absolute asset gathering monster, hard to describe this company. $7.5 trillion in assets under management, one of the biggest ones that are out there and more importantly this inflows keep coming into the company, $75 billion in inflows into the i shares etf portfolio to give you a sense how big these companies are becoming, the big just keep getting bigger here i shares is 40% of the etf market, over $4 trillion, five companies are essentially 90% of the whole etf market brian, this is what i mean when

i say they just keep getting bigger and everybody else is 150 etf providers basically is getting the crumbs from the top five >> that is an incredible number, incredible stat, incredible inflows and something we will talk about in a couple minutes bob pisani, thank you very much. we are just getting started on a very busy exchange. here is what else is coming up >> announcer: coming up, passive is king. new numbers show investors are locking to etfs at a huge pace should we be worried plus, jim cramer sits down with the ceo of stitch fix. and not hitting the mark peloton isn't a fad, and the doj meets with the ncaa. it's all coming up on the exchange this is "the exchange. on cnbc. corner of your growing .

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welcome back we may be off our highs of the day but stocks overall are rallying again to yet new records. this presumably on the back of the trade deal signing as well as continued momentum for the last couple of weeks it's also a big boost for black rock you heard bob talk about it a bit, the asset manager posting huge numbers for the ourt quarter including an 81% increase in new money flowing into its i shares etfs

that my friends more than $75 billion. but it does raise a question, are investors headed for a crash by pumping too much crash into passive investments, >> wasif, i want to start with you, you have a note out here, it says the worm has turned. the spread between the top ten and bottom 490 stocks in the s&p 500 has never been wider the big ten are controlling everything it's great when it's working what happens when investors eventually stop buying those stocks >> well, when that happens the overall market given their weight is going to feel the impact and those stocks are going to decline. >> how much? >> it depends on what the decline is given the weight that they have, the rally they've seen, there's going to be big impact that's why having a risk

weighted approach instead of a market capitalization approach is a better way of going about it which is what we do our etfs. it's all risk weighted, what is the volatility of a stock not necessarily what is the weight of a stock in an index >> because, marky, as everybody piles into these names by their size i think apple itself is 5%, i think it's the top five stocks or 17 or 18 percent of the s&p 500. the index wausau tens blee created so that would not happen does the market this some ways feel like a bowling ball stacked on top of a pencil >> no, i don't think so. and i think the reason is that really what the growth in those large cap stocks are as a percent of the market reflects their fundamental success in growing. since the financial crisis large capitalization stocks secular growth trends have outperformed in sales earnings, every metric

and the stock prices i think it reflects the reality and i don't see any real apparel in the marketplace because of the overweightings every market cycle we have had a handful of stocks that have taken a disproportionate percentage of the capitalization of the market. this is typical. >> is it typical the data shows we have never had this kind of market structure. we have had times of imbalance, agreed, 1999, 2007, all those years, but i don't think it's been this extreme. no >> well, it is a little higher, but i would say, too, if you look at the way growth trends in the economy in the u.s. and globally has been, the strong, the big have kept getting bigger so you do have the reality that bigger companies gather more strength, gather more momentum and keep taking more and more share in their business. i think that's what the etf trend really reflects is the economic reality underlying the growth, this so-called disproportionate share

when you look at the growth characteristics of apple it's head and shoulders above most of the other companies you compare it to so therefore it should have a bigger rate. >> the one thing i do wonder is whether or not companies -- good companies -- are being ignored ignored by the market because the analyst community is falling apart, we don't have much self side work, many small caps getting attention, the big caps keep getting bought in the etfs. are there a lot of really great smaller cap companies that are being left in the dust because of the structure >> we think it is, especially if it's going through this etf structure where it's all capitalization based where 50% -- the top 50 stocks, for example, in the top 500 names make up 50% of the weight of an index. so the bottom 450 names they are generally getting ignored because they don't have the kind of weight that would reward the fundamental growth. >> and they probably like it because their stocks are going up as the index goes up because people are putting the money

into apple, but if and when people start selling apple, amazon, microsoft, whatever -- no matter what their fundamental earnings are going to go down, right? they're going to go down even though they have nothing to do with it. >> the price to earnings ratio and valuations are telling us that the expectations are very, very high for these stocks and any disappointment will push them lower and that's why having equal risk-weighted approach that we have, for example, in cfa makes a really big impact because then you allocate according to the companies you are talking about, the ones that are getting ignored. we're going to have a healthy allocation to those as well. >> i think this is an important, very important, market discussion and market structure. i appreciate both sides, the views and appreciate you coming in thank you very much. all right. on deck, target, off target. sales missing the mark, we examine what went wrong for one of america's hottest stocks. plus, a big night here on cnbc, the series premiere of our hot real estate show "listing

impossible" tonight 10:00 eastern time that show's star is going to join us live next. the exchange back in two minutes. ary terrain in tellurid, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered.

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the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant ...take the personal assessment i love the new myww program, because it's tailored to you! and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join for free and get two months free! burgers and fries, off target, and video games topping your single stocks to watch right now. first up, shake shack. shares are up nicely, goldman sachs talking them up, the bank getting more comfortable with shake shack's menu innovation

which it sees helping comps beat expectations this year next, target and toys. target's big holiday sales miss also taking down shares of hasbro and mattel. target said that same-store sales for toys were flat during the holiday season earlier this month steeple writing to clients that mattel toys were flat among amazon websites zinga hitting its highest level since 2012 key bank resuming coverage on the stock with an overweight, this on the strong portfolio, sustainable and proven brands and a deep pipeline that should supplement growth over the next couple years we should note zinga investors it is still down below it's 2011 ipo price of $10 per share, still the highest since 2012. the haass market overall is off to a strong start to the year but some luxury homes in california have been floundering on the market, some for years. that's where real estate agent and star of cnbc's brand-new

show "listing impossible" erin curman comes in, he says these millionaires need to change their perspective when it comes to selling a home. >> a home is what people are emotionally attached to so when it doesn't sell they're stressed, upset, disappointed. >> good to meet. >> you good to meet you, too >> i do my best to try to teach them that while this is emotional and i get it, look at this like a business >> all right so let's bring in the star of this new show, aaron, 10:00 today, we look forward to it congratulations. >> thanks so much. >> great to have you on. >> thanks. >> i assume most of these millionaire owners and i assume they are because they have million dollar homes are smart people, business savvy what's the biggest mistake that you see them make trying to sell their homes? >> they make so many mistakes it's shocking. these people are so successful at what they do and so wealthy, i'm shocked by them. a lot of times it's overpricing houses, thinking that they have the best house on the best street and overprice it by

double bad design, bad pace attachment there's so many birch issues. >> smart successful people are great, but they also might have just a sliver of ego where they're saying, aaron, let me tell you how it is how do you break through that? >> well, it's never just a sliver seeing fwoe -- >> i'm trying to be nice. >> ego is our biggest issue on our show and in general. a lot of our sellers really think that they are right, this i that their decisions are correct and even when the market doesn't speak to them in a way they still defend them on our show you will see me just telling the truth, cutting it, you know, telling it like it is. >> that's hard that's hard. >> it is and oftentimes they don't like to hear t the reactions that you will see sometimes is anger, disappointment, i've been kicked out of people's houses. >> have you really >> oh, yeah. i had a seller on the show that said if you're going to continue to do this get out of my house and it's not just the show, it's

what happens to us on a daily basis. >> it is true. and we all know real estate agents, we have friends or family that are doing on whatever level it is, condos to $20 million homes like you do, aaron, and do you ever sometimes want to give advice? sometimes you have to walk away. even though it's a commission you may be losing, it's not worth your time and hassle, is it >> i would say 60% of the time i walk away. so -- >> that much >> that much seller expectation is always just everyone has a different impression of what value is and the way they want to see their house go and i have to walk away from a lot of business because our time is our money. >> yes. >> and their time is their money. >> if you are dealing with a seller unwilling to make changes and every day they're calling you and it's a year you're losing business because you're dealing with this needy seller. >> 100%. if one door closes another one opens. we like to make sure we have the right doors open and if a seller is not realistic and really understands the market and our

version of where they need to go, we oftentimes walk away. >> don't give too much away because we're going to watch it tonight 10:00 eastern time but we saw a bit of a clip, the house looked modern, industrial chic, i'm just going on what i saw, i have not seen ttell us little bit about what we're going to see tonight. >> tonight you're going to see a divorce a and his house was his divorce settlement, it was all she had. >> so it's emotional, she's tied to this. >> it was her life savings in this house and it was on the market for three years at a price that the market just was not accepting. so you will see us go in, tell her like it is we really had to cut the price tremendously we had to restage it and we had to do a lot to get that house sold. >> but it sold you may have away a little bit she got it sold, you got it sold. >> i would say we got it sold. she was one of the sellers who really listened to us. she would glare at me and give me dirty looks, but she obviously listened and it was --

well, the audience will see. >> don't give it away, we will look forward to it tonight aaron curman listing impossible. sounds good. homes are emotion, it's a passionate thing take care. let's now get a news update with sue herrera sue? >> thank you very much, brian. here is what's happening at this hour, everyone vladimir putin wants to make sweeping changes to russia's constitution and political system allowing him to stay in power longer russia's prime minister and government resigned as part of today's announcement putin is supposed to leave office in 2024 t-mobile and sprint executives arrived at manhattan federal court today ahead of closing arguments in their merger trial a group of states are suing to block the proposed $26 billion deal over pricing concerns senate democrats have the votes needed to limit president trump's war powers after republicans susan collins of maine and todd young of indiana came out in support of the resolution it would require trump to seek

congressional authorization for further military action against iran >> and the fda is warning a weight loss drug approved in 2012 may be linked to cancer the agency is reviewing trial results associated with the drug belviq which showed a potentially increased risk of cancer to patients you are up to date, that's the news update this hour. brian, back to you. >> sue herrera, thank you very much. the final vote is in to send the two articles of impeachment to the senate. ylan mui joining us now with the numbers and final count. >> well, brian, the house does have a vote it needs to send the two articles of impeachment over to the senate as well as name the seven managers who will serve as the prosecutors in the upcoming trial that vote is still open, currently the talley is 228-193, clearly along party lines here, only one democrat so far has voted against this resolution, very likely that is colin

peterson of minnesota who had voted against the articles of impeachment themselves one independent justin amash has voted with the democrats to send those articles of impeachment on over to the senate once this is officially passed the next step in the process is for house speaker nancy pelosi to sign the resolution and then for the house managers to physically walk the articles across the capitol and hand deliver them over to the senate. we expect that ceremony to take place at about 5:00 p.m. and, brian, then the ball will officially be in the senate's court. back over to you. >> a few more hours to go yet in the day and that ceremony, the physical walking to the senate, ylan mui, thank you very much. we will see you soon. all right. we have a lot more coming up on worldwide exchange, the markets, by the way, on "the exchange" markets at all time highs, a little bit off their highs a busy day in d.c., the phase one trade deal being signed, we have these articles of impeachment, the dow is up 110 points

"the exchange" as wa sn alysee worldwide. we are back after this ♪ ♪ ♪ ♪

welcome back to "the exchange." target's holiday sales may have missed the mark things are

looking up for another retailer, albeit a unique one. stitch fix, the online subscription service saw revenue growth 21% in the first quarter. stitch fix up nearly 20% in the past three months. our own jim cramer sat down with ceo katrina lake just moments ago to talk about how it is disrupting the retail space. listen >> we have a huge business and we have 3 million clients out there and really what is differentiated about us versus other apparel retailers is we are solving the paradox of choice and really figuring out what is right for you uniquely you individually and so as an example jeans like, you know, nobody wants to be trying out dozens of pairs of jeans and online nobody wants to search through literally a million pairs of jeans to try to figure out what are the right ones for you a model like ours is able to use data science to be able to understand what is it about you, what is it about the pair of jeans and then match you really smartly with jeans that are going to fit you with us we ship product to your home, you let us know who you are, what you're looking for, we

will ship product to your home, try things on at your home it's a very effective and efficient way to be able to find clothes that you love. >> all right and jim cramer joins us now. jim, i mean, this is a fascinating company, on one hand it's a retailer on the other hand it's not, here is my most important question, are there a name for people addicted to the service? are they stitchers are you a fixer? are you a fixer? >> am i a fixer? well, i mean, i subscribe to the site but frankly i'm not the core audience. in part because you and i both know we have someone who helps us dress us and when you have someone who helps dress you you don't necessarily need stitch fix. you certainly don't. what you really do need, though, if you are trying to figure out what to put on and there are so many different choices as katrina said, you don't have the time to be able to deal with it and you need someone who is better at it than you, you need a stylist and you need to be directed by algorithm and that's what this does we left out it makes money it's a company that makes money. i find that to be joyful

>> you know, it's interesting that it does make money, having gotten some boxes, every time you talk about a company you want to experience a little bit what they do what exactly do this he do you will get basically four or five things in a box every month, you try them on, could send some back making sure that they keep as much as possible when they send it is the key to this business' success. >> well, look, i mean, i think they know what you want more than you know what you want. so, therefore, returns will be small, by the way, obviously inventory not much of an issue versus, say, a traditional department store of course does it end up in a landfill no, because you choose it yourself, high quality i mean, it's got a lot of the -- i don't want to say boxes checked because that is too so-called cerebral but it does identify with what a lot of younger people care about, sustainability, trying to get it right, not spending a i lot of time on it, doing it mobile, doing it at home these are all the things that younger people want. look, i want to lord and taylor when i was growing up, you know,

macy's, people still going g. to macy's but you want that younger person because they will be with you for life. >> what do you think in your discussions about the company or your conversations with ms. lake that the street has not necessarily figured out about this company yet, jim? >> that's a great question i think what people haven't figured out, brian, is that you can have growth and profitability but it may not be the kind of growth that you want look, there is a lot of companies out here growing 40, 50, 60%, but they are not making any money. if they hit a pothole you're going to have a stock that's can put in half. this is a company buttressed by the fact they do make revenue, good revenue growth, a series of new different initiatives that i think are going to pay off it's just a question of sponsorship. they don't have the sponsorship right now of oliver chen, they don't have matthew boss, jpmorgan, they are not going to be at the jpmorgan retail conference that i can tell that's where you get the

sponsorship and big institutions they're busy running the business they don't need necessarily for me to cure rate what their stock should do but that's how you get that exposure. >> i want to ask about target. everybody was talking up target, everywhere you go whether it's oliver chen, you just mentioned the analyst or you or the guys on half time brian cornell has done a great job. do you think the street is being a little too tough on target today? given what they've seen from the quarter. >> no, when they said they were doing 5, 6 and thought they would do very well, the stock got bid up 12 bucks, it's going to give some of that back. there's an achilles' heel there and the achilles' heel is hard goods, electronics, home in the end we still want to go to amazon for those, we are not going to get the lowest price at target i think it was an apple christmas, the 11 took the world by storm and cost a lot of money but it was a let down. how do i know it was a let down? because brian said it and i know that he's probably steamed at himself right now which means he'll fix it. >> also you're not going to buy

an apple 11 phone every quarter so they might have that in their corner jim, final comment, of course, i know you probably will talk about it on "mad money" as well tonight about this trade deal. how much of today's market gain do you think is tied to that deal i saw your great interview with your friend and former colleague, by the way, larry kudlow this morning, but the market has also been in a positive momentum mode as well how much of this -- >> we're going to put pen to paper and realize there is a lot more to this trade deal. i thought that, i don't know, what was that the fortune 50 that the president mentioned there is a lot of companies, the ceos have been on my show and i have to believe that they are not there just for show. i think that they actually are going to make more money than people realize larry, who was a partner for many years, larry is right when he says this is a much bigger deal than people think i know to go with larry even if people say, come on, he is always an optimist, he is also a earn who understands the economy, understands companies, people and shareholders can make

a lot of money. >> what i loved about the interview, too, was when larry talked about how they get complaints from chinese companies who are complaining about other chinese companies. that the chinese, i think larry said, are stealing from themselves and they could use our help in that. >> the communists are repatience capitalists and they have zero sum capitalists to some degree i know it seems odd that the communist party -- the communist party to me felt like the pajama party, did they ever lose in this deal. the president and larry were quite gracious i think that they are more of a paper tiger than people realize. where are all the people who said that they were playing the long game, if that's the long game i don't want any part of their game. >> it was like a one pitch long game. >> i would play short game short game better than long game. >> we got a deal. >> exactly. >> we got a deal, with he got new records, got stitch fix on with you tonight on "mad money" and got you on "the exchange." it's a win, win, win, win. >> i love talking to you brian

thank you. >> and me as well. catch that, katrina lake tonight "mad money" 6:00 p.m. eastern time with jim. you will want to tune in tomorrow, this is the big one, jim said it yesterday, took ten years, i don't think he was actually kidding on that number, by the way, to get this. he's going to travel up to seattle, he may be there now, sit down with satya nadella. big day for mad, for jim, sat i can't nadella. good exclusive tomorrow. china greeg to buy more energy from the united states with that deal me go gentle ceo of at thtellurl join us from d.c. next

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♪ all right. the u.s. and china signing a long-awaited phase one part of the trade deal which includes the purchase of more than $50 billion of energy products over the next coming of years let's talk about it. we're joined by meg gentle he she's president and ceo of

tellurian. she's joining us meg, thank you for joining us. you've seen the deals, parts of the deal that i'm sure matter to you for lng tellurian gas industry and what does it mean for you and the country in general? >> brian, this is big. this is big for america, big for energy and i'm so pleased that the president recognizes the strategic of energy in overall china/usa relationships. what we think what it means for trade we're goi ing to sell a l of natural gas in fact, we produce more and more natural gas in this country every day. so much so that we're oversupplied in natural gas and we're even wasting some of it. we must increase our exports we're on path to become the largest worldwide exporter of lig q liquefied natural gas, lng, and

wield be delivering it from the driftwood terminal we're going to deliver natural gas to the world and to 50 million people and the largest construction project in the u.s. when we start this year. >> china has the chounway, as y said, meg, becoming the largest liquefied gas exporter china has a choice they can go to qatar, that's the world's second largest producer of lng at the moment they have other options. what does thisdeal to ensure that other countries, u.s. workers, the u.s. industry thrives? >> good news, brian, right now, we're becoming the low-cost producer we know that we can put lng into the vessel on the water for $3.50 in mmbtu and deliver that to europe for about 450. and asia, 550. this makes the u.s. and u.s. worker competitive against all of those other places.

qatar, russia, australia china is about to be the largest importer we should be the largest exporter so there's a trade deal in there. >> tied together by gas, i guess. what's funny, i guess it's not funny, meg, is that literally russia and italy are tied together with the umbilical for gas there. does that swing imply that china and the u.s., whatever else our differences will need each other long term from an energy perspective? >> brian, we're going to be tied for a long time on so many different parts of our economy so the natural tie on energy bolsters not only the u.s. economy, but also the chinese economy. the chinese household and protects the environment, with clean air and lower co2. >> i think that's stephen schwarzman of blackstone behind you. i'm not sure yeah, he's walking by.

can you ask him if he's going to invest in lng? >> my old friend steve, we've done a lot of lng deals together, mr. schwarzman and i >> i think he's coming up on cnbc in a minute in the different industries, what's the takeaway? >> so much energy there, brian and not only energy companies, but from across all of the sectors i think there were roughly 200 ceos that represent really the future of prosperity of the u.s./china trade relationship >> all right meg gentle, president and ceo of tellurian ticker tell, we appreciate you telling us what happened today congratulations from the white house. for being there, meg all right. so, let's take a closer look at these markets if we can because what a day this is just to recap, if you're just

joining us, maybe you're in hawaii and you're waking up, the dow new corerds across the board. that does it here on skx skg"the exchange." "power lunch" is up after this

♪ welcome, everybody, to a

very busy edition of "power lunch. we're going to begin this hour with breaking news as we are moments away from the release of the fed's beige book which will inform the fed's decision making later this month stocks are soaring as phase one of the trade deal with china is signed on the dotted line. let's go to steve liesman for the beige book >> economy expanded modestly in 2019 two districts came in above average growth, three districts were subpar. consumer spending growth was modest to moderate with holiday sales reported to be quote/unquote solid. car sales expanded moderately. manufacture pointed out as the weak area of the economy was flat in most districts many districts with uncertainty continued to weigh on some businesses job cuts or reduced hiring was reported among manufacturers, energy and transportation sectors, however, employment was