microsoft that could change this story. aingd that explains why it trades at more than 30 times earnings because other people can't figure it out either >> so we've just got to wait for higher rates the wait continues great stuff. thanks very much that does it for the exchange today. i'll go join tyler for "power lunch" which starts now. kelly, thank you very much we'll see you in a moment. welcome, everybody i'm tyler mathisen here's what's new at 2:00 on "power lunch" on a monday. stocks are holding steady even as the coronavirus death climb counts, but there's something happening in the market which could be a major warning sign and we've got those details. plus as the virus spreads beyond china, the global impact on travel could have a major impact here in the united states and softbank is set to report a steep drop in profits. this as elliot management takes a nearly $3 billion stake and

the chairman of we work says the company is back on track "power lunch" starts right now >> thank you, ty, and welcome to "power lunch"."." i'm kelly evans. stocks are climbing higher, sth shaking off the virus fears again. nasdaq up two-thirds of 1% and check out tesla, which has been one of the reasons it's done so well looks like investors are in if the another wild week. shares were up nearly doubling digits we'll have more on what's given them their competitive edge. >> all right the coronavirus outbreak es escalating with the death toll above 900 but the bulls seemingly not flinching. bob pisani is at the new york stock exchange for a look at what's keeping the markets as high as they are >> good day for the dow but

mostly because of microsoft and boeing they're what's moving the dow into positive territory. as well as the fangs here. facebook flat. amazon had a great day their debt got an upgrade. netflix, strong. alphabet, strong microsoft mike was just talking b about that a new high that stock is virtually unstoppable this year. what's moving the markets? well the question that everyone's try iing to figure o is whether the factories in china are going to start reopening and we don't have enough data there. kia is shutting down in south korea. tesla and samsung are resuming in china we don't have an answer yet. the friday numbers of the jobs report were terrific numbers were strong fourth quarter. first quarter numbers have been dropping on coronavirus fears and the question is how much more will they need to drop in the next couple of weeks we don't have an answer. reporting this week, maybe some of the consumer names, some of

these companies get 4, 5, 6% of their earnings pepsi's at a new high. under armour, kraft and alibaba, big one that's reporting on thursday and we'll get some obvious b news about how china is doing at that time. so we'll have a little clearer picture towards the end of the week about coronavirus and its impact on the big consumer names. >> thank you so much stocks might be shrugging off those fears for now, but the bond market seems to be telling a different story. as some think, investors might not be taking this outbreak seriously enough >> thanks. concerns about the coronavirus weighing heavily on the outlet for first quarter growth and some forecasters not taking it as seriously as the bond market. finding first quarter average aing 1.2%. down nearly a point from the actual fourth quarter number we have and with a modest bounce

now back to 2% in the second quarter. t it becomes because of the coronavirus and shutdown of the boeing 737 max we went back, looked at the ten year, off almost 37 basis points s&p remains up about 100 but jpmorgan writing rate markets are sending warning signs, creating renewed disconnect what we find complacent is the idea that chinese economic weakness will have limited repercussions for the rest of the world. equities might be sustaining levels because of belief the fed will step in later this year we'll hopefully learn how real that is. we have testimony from jerome pouil powell >> tuesday and wednesday or wednesday and thursday? >> tuesday and wednesday >> stick around because we're going to talk more about what's goin on and whether investors should heed the warnings of the

bond market. we bring in tom lee who says to keep buying stocks, but you are concerneded about system of the things you're seeing in the credit markets >> i think steve hit it on the head a divergence not only are rates showing ksh concerns, but credit spreads you want to see high yield rally if stocks rally. >> so what does it tell us that money keeps pouring into u.s. stocks >> so we've paused that the s&p has managed new highs, by the way, the rest of the world's equity markets are down because the s&p has become the safety trade. if you're worry about global growth, you're going to overweight where there's growth. if you're worried about growth, you buy growth stocks. the s&p 500. you buy large caps >> tom, the stereotypes are that the stock market is more

emotional and momentum driven and the bond market, cooler heads. tend to be more considered ultimately, we're not even asking that question we're asking which market is the better especially deemologist. stock or bond market >> maybe in pop already opinion, but i think bonds lead stocks. so i think the divergence that's in place where stocks have rallied to new highs, but credit remains stressed, is telling us the first half for eck quities should be choppy so even if we're new highs because of this safety trade for the equity market, i don't think stocks can look through that seismic economic effect of coronavirus. >> let me make one more point, kelly. in all of the research reports that i read, the strong jobs numbers we got on friday, a bit of a turn around suggest not that the coronavirus won't hurt, but that the u.s. economy's well positioned ed to weather that ht that may be coming >> for sure. the one thing i wonder is if we're misinterpreting the decline in bond yields

it's been the subject of discussion for a long time, but is it possible the drop in yields is not necessarily a bad sign been the case for so long now, we've seen no matter look, even on friday is a perfect example basically a really good jobs report is it in part because of this quality that it has? >> yeah and maybe like a global -- u.s. yield, even though they've dropped, they're still high relative to the rest of the world so you're still going to attract flows i think that's a good argument and many clients think inflation is dead as far as the eye can see, so i think there's developing complacency about bond yields. >> we often think the ten year should be where gdp is and it seems like a major disconnect, but we've been scratching our heads about this for so long now waiting to get back close to something 3% and other than a year ago, we really haven't. >> we were going to turn around in the first quarter of this

year we had the trade deals in place. some sign of better optimism among businesses along come really two hits to the economy. the boeing hit and i can tell you how it divides from the people i talk to about 03 from boeing and 04 from coronavirus. those are two big hits the trouble you get into is these are things that can wash easery out of the system with a second quarter, third quarter bounce back. you hit the thing too many time, it falls over. that's the concern you have. you have too many shocks to the economy. that said, i think we're in a good place to withstand it >> so tom, you said you think the first half of this year for eck wii pis will be b choppy, but that doesn't tell us about the second half of the year. do you think it will be better and that the equity market in the united states will end higher than it is today? we're sort of near record, but the first month of the year was kind of flat

>> i think investor expectations for the full year are too low because you know stocks were up almost 30% last year so most expect muted return, but earnings should grow greater than 10% and if growth improves the way we expect it to, pe should exand so i think you could get 10% return from just earnings, another 5 to 10% from pe expansion just need to get through this coronavirus ripple >> you think the market's right to look through these events that are happening now that are challenging. sxwl yes because i think the stress we're see iing in credits not a snapshot of where we are in a year, but it is the fkt that stocks you know maybe are not looking at the near term risk, but i think when you go to the full year, it really is about the fact that the pmi staged a really big recovery that's impressive. and we've had great payrolls numbers and there's a wealth

effect plaus plus oil's dropped which has a wallet effect and financial conditions eased last year >> and not making much in bonds. >> one on this, what do you make of the bitcoin move? we're over 10,000. is it because of some of the safety concerns that tell you anything about the market? >> yeah, a lot of good things have happened with bitcoin this year one is that it's happening in may, but we broke above the 200 day. there is the coronavirus risk. with the elections, it's sort of not in the purview washington, so i think bitcoin could rally strongly from here >> finish the thought? >> i was almost going to ask him how strongly and when but i don't know if that's getting too speculative. >> i can give you a mathematical stat if bitcoin breaks above its day, its average six month gain is about 190% so this would point to all time highs.

>> over 30,000 >> or 27 >> so which is going to be first to 30? dow or bbit coin that's your question i guess zpl my guess would be dow, but if i had to say you know what is first of 40,000. i would pick the dow >> wow sorry i asked. >> interesting >> all right, tom, thank you very much. steve liesman, thank you tesla shares have been another huge u part of the market story lately. they're up around 80% this year. what's driving that success? new data shows they have a huge advantage over its competition let's bring in phil lebeau to find out what is helping tesla to keep going and going and going. >> it has to do with battery costs. when it comes to hecht rielectrc vehicles, the better the cost, you don't have to charge as much as the premium it basically is where you're driving. you want to get as low as possible and tesla, the only electric vehicle maker that uses

slindry cal cells is way below all the others use pouch, battery cell or prisonmatic. it's a clear advantage according to karen energy research for tesla. a lot of people will say they've got the gig factory. their using cylinder cal cells they point out the fact that begrudgingly, the other auto k automakers are coming around to realizinging that tesla knows what it's doing and is doing it well when it comes to electric battery packs. >> i would say five years ago when i spoke to automotive engineers about tesla, they made fun of it, thought it was something made in a garage today, it's dimpblt. they aren't necessarily going to speak publicly in this way, but there's a lot of respect and maybe envy for what tesla has

taupe. >> it is engineering in things like the battery management software that's the key to what makes tesla's ev battery pack so successful in term of lower cost and greater energy by the way, don't forget that tesla's ceo, elon musk, will be leading what he calls a battery day analyst briefing come up in april, guys, and certain ly the whole point of this is for him to talk about the advantages they have when it comes to ev batteries, but also where they want to take it in the future >> thank you very much, phil, in chicago. we've got meantime, a news alert on the os r cartel vision ratings from last night and julia has the details. >> the oscar ratings are in and the telecast ratings dipping to an all time low. 23.6 million viewers tuned in. this is after last year, 29.6 million viewers tuned in last year it was the first show with no

host, but we also saw an increase in viewers for the first time in five years now the ratings have declined again. just to put those numbers in context, looki ining back historically, looks like ratings hit a pique in 2014, 43.7 million viewers e tuned in so a decline in terms of overall ratings though abc points out it was television's biggest awards show bigger than the grammys or golden globes and social media activity increased up 16% from 2019 across twitter, facebook and instagram. so an increase in social media, though television ratings are down to a low for the awards show back to you. >> can you recall anything else that dropped 20% a year in ratings? that seems like an incredibly steep and sharp and quick decline. >> yes, it's interesting because if you look at the different years, i mean 2018, it was 26.5 million. and so there's been a lot of fluctuation based on the host. based on having no host.

last year having no host ended up sending ratings higher and a loft f the ratings of the oscars really depends on what the new mexico nated films are his tor chiu, there's been a correlation of having films that more people have seen drive higher viewing of the oscars themselves so for instance, the year that avatar won best picture, there were, it was a huge amount of viewing. same with titanic. so if you have really popular films at the box office, that usually correlates to higher viewership there were some films that did fine at the box office, but you have any of those nominated then you had the factor there were two netflix films so wonder how that came into play. >> thank you come up, elliot management maybe looking to put the squeeze on softbank and our next guest says a face off would be the investor's world's version of

ali versus frazier plus, 2020 was meant to be a growth year for cannabis, but pot stocks are up in smoke we'll explain when "power lunch" continues.

>> so we have a plan and now it comes down execution we're going to have the first 1 billion quarter. it's a large business.ing put t squeeze on softbank as the company gets ready to report a steep drop in profits this quarter. for more, we're joined by dan. and we love your analogy paul singer against his son would be ali frazier explain what you mine by this face off and how difficult of one it could be. >> you've got two guys nobody likes to lose in business, but elliot and paul singer, they don't lose very

often and particularly when it comes to technology companies, which i think you could argue softbank is, they've got a really big win streak going then on the other end, you have mashiasho. he views things in centuries so i think you have this culture clash. two folks with a lot of money behind them and neither one is known to back down >> so where does this likely play out there's pressure on softbank from elliot. thest a big stake for elliot frankly for softbank, too, so this is not something they're doing as a side project, not that they ever do. what are the implications for how softbank is run? >> i think the biggest thing is what elliot believes is that softbank is trading at a huge discount to nav. they said 60% when they kind of disclosed the stake, softbank

stock went up a bit. what they want is buybacks they think the stock is cheap. they should be buying its own stock. reason that matters is softbank has been taking a lot f that cash and using it to make new venture investments. it raise e ed this vision fund h is mostly tapped out to date, it hasn't closed on a dollar from outside investors so all the deals it's doing have been from the balance sheet. elliot wants him to take that for buybacks softbank has been using it to buy into new start ups >> what have we heard, dan, from softbank, if anything, about this elliot stake or the specifics that elliot want, nakly a stock buyback. two, what are the odds this encounter ends peacefully? >> on the first part, basically crickets we respect our shareholders and have discussions with them the peacefully part, it may because there's a good chance elliot will get what it wants.

elliot usually gets what it wants. to be honest, masa has shown recently a little bit of concern about the way the softbank vision operated. so big variable in this is can they convince par saudi arabia to commit to vision fund two that seems to be a giant question up in the air >> can we work do what he says it intended to do? >> maybe maybe. you know, there are so many companies kind of like we work the so-called companies who have been talking about profitability next year. 2021 it's this magic year where apparently when christmas comes this year, everybody flips a switch there's questions of what those adjustments really are it's possible. the other thing marcelo mentioned was he took issue with report that is the former ceo walked away with around $1.2 billion. but it's not really.

the company's tender offer for stock is still outstanding if he exercises his full tender, will walk away with about $1.2 billion. just hasn't quite gotten there yet. >> all right, dan, appreciate your time, sir >> thank you >> we'll learn more about softbank soon. the department of justice indicting four chinese army officers with hacking into e equifax and stealing the personal data of 115 million americans. those details next plus, we'll take a look at the by o tech stock that could get a big bump from the coronavirus. back after this. ♪ ♪

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now in triple strength plus magnesium. the doj announcing it has indicted four officers with hacking into equifax and stealing the personal data of nearly 150 million americans eamon? >> the attorney general, william barr, laid out the american case today that chinese hackers stole data from 145 million americans as he announced these indictments against four members of the chinese military. now the four who are alleged members of the chinese army's 54th research institute took part in a massive theft that

affected near ly half of americans. they routed data through approximately 34 servers in nearly 20 countries. the attorney general says they're using the data to feed artificial intelligence tools and help them target americans he said the attack on equifax was an attack on u.s. consumers as well as the united states guys, i spoke to a high ranking cia official today who explained that data is to artificial intelligence just as gasoline is to the automobile. they're use iing this informatin on americans to power their ai over the united states back to you. >> do we know what they were planning to do with this data? >> ultimately, officials today said they haven't seen any public indication the data has been used yet, but a lot of this that u.s. law enforcement wouldn't necessarily see if they're using it to power ai

back in china to analyze the american economy, american individuals, american politics, all of that, you wouldn't necessarily see the results of that publicly, but it would inform chinese intelligence as they try to figure out their strategies to counteract u.s. influence around the world >> appreciate it and tune in to closing bell today for a first on cnbc interview with the ceo of equifax. >> and now to seema for trading nation >> turning to the coronavirus outbreak and how to play bio tech stocks. your team today is mark newton and quentin. you've been digging in what's your call >> yeah, gilead broke out last week so it's up to new six week highs on an explosion of volume week we saw the call open and jump over 88%, so an interesting way to potentially play this the stock had been going down and cut in half since 2015 and

movie ining sideways this little breakout is interesting from a risk reward standpoint so the speculation as to potentially takeover potential or they started wondering about the efficacy of really testing on human patients in china and given approval by that, by china. so you know an interesting technical risk reward long for me i like it and would like to buy any weakness >> it's only trading at 11 times earnings >> yeah. i was really surprised when i started digging into gilead just today. surprised so much that i had to pick up some shares for our firm today. the stock is trading 11 times forward and has very impressive earnings growth and most importantly, has over $6 a share. is generating over $6 a share in free cash flow with a 4% dividend sure, i hope they get a boost on the coronavirus, but from a valuation standpoint, we like

the stock quite a bit. started a position we'll be digging in until the fund goes further. >> for more, head to our website or follow us on twitter. >> thanks. ahead on "power lunch", demand for travel to china from the u.s. dropping more than 58% compared to last year. what this means for airlines and tourism, next. plus, who is benefit frg tting the principle candidate's ad spending blitz and despite growing demand in the u.s., pot stocks are up in smoke what's causing the decline and can they recover all this when "power lunch" returns.

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welcome back, everybody. i'm sue herera here's your cnbc news update at this hour. at least three people including two police officers were shot this morning at a walmart in eastern arkansas authorities are working to secure that scene. employees from the store appear to have been evacuated into the parking lot. forest city is about 85 miles east of little rock. president trump meeting with the nation's governors at the white house and one asked him what was next on his trade agenda he responded he would be turning his attention to europe. >> europe has been treating us very badly l the european union was really formed to treat us badly, so they've done their job chblt that was one of the primary reasons. they treat us badly on nato. and babies born in the u.s. weigh less than they used to, with the average rate dropping 2.4 ounces to 7.2 pounds

that's according to new angel is from more than 23 million births researchers attribute the drops to shorter pregnancies and therefore earlier births back to you. >> thanks. time now for the power movers and who are they are. fedex is delivering a 1% gain after an upgrade from ubs. they believe consensus is low for the company and that their express service will expand. slack will move all employees to the messaging app. it's on pace to have its best day ever, up more than 14% and wall street ghosting casper again today. shares have now fallen around 13% since it went public casper trading at $10.10 and oil is selling off into the close. back below $50 let's go to frank holland for more >> right oil prices slipping today for the 12th time and a dampening demand expectations for the

wor world's large oil import order as fears over the coronavirus. wti selling below $50 a barrel again today and hitting its lowest level in more than a year brent fell more than 2%. settled around $53 a barrel. make matters worse, russia doesn't appear ready to commit to further supply cuts, saying it needs more time to assess the situation. back to you. zpl thank you very much. the coronavirus is rocking the travel industry as you might expect airlines are facing their worst event driven financial hit in almost two decades travel booking app hopper coming out with key findings showing that demand for trips from the u.s. to china has dropped more than 58% compared to the same time last year it also saw round trip prices spike as much as s11%. this will be a big hit for united, american and delta as they control about a third of

all capacity on u.s. china routes you can see unit ued, the most deeply hit there joining us to dive deeper into these numbers is hopper chief economist, hailey berg let's talk about the decline in travel and the decline in the number of flights into, out of and within china it is really shocking. what's the number? >> so, out of the united states, we're expecting about 5% of total international capacity to be impacted. and on top of that, we do expect to see an impact on flights intended for the rest of southeast asia that were connecting through china so a really wide impact here >> so as we look at the number of flights going down, you guys say that round trip prices to china are up 11% if demand is down, why are prices going up? >> so we have a little bit of o a selection problem here there are still some flights going from both the u.s. to

china and within china so part of the reason we're seeing prices spike about 11% is because many of the lower costs are connecting flights are no longer eer available so we have fewer seats, but still some demand which is why the price has hike d about 11%, but we expect to see that price to plateau in the next few days >> so this is obviously a situation that may play out over a period of weeks. maybe even months. who knows until officials get a handle on this virus, but one thing we know is that the number of flights are down. the other thing we know is that the number of inbound chinese tourists is way down they really can't come in. where is that being felt most prevalently? >> so we'll feel it most in the u.s. in cities like los angeles, new york and san francisco who collectively in the next two months were expecting more than a million passengers from china.

chinese tourists typically spend a high volume of dollars in the united states when they visit. so those cities will definitely feel the ill pact first. >> yeah, i thought that was really interesting and given they typically travel over the liunar new year and that's no longer an option, is that gone for good this year do you educatixpect it to downb next year or do you think things might permanently shift. >> i would expect things to bounce back next year, as long as the virus has cleared up. travel to the u.s. from china and china to the u.s. is a grow ing segment so without a disruption like this, we would expect that demand the continue to grow and those travelers continue to visit us here in the u.s. and head from u.s. to china as long as things are cleared up with the virus >> i know that financial analysis is not necessarily what you came to do, but i have to think if united holds 18% of the inbound outbound u.s. traffic to and from china, those tickets

are extremely costly tickets, generally. this is going to have an impact on united's stock price and it's profitability. isn't it >> we expect to see these airlines to you know have to deal with this loss of capacity and ability to fly that said, though it's 18% of united, united owns 18% share of that route they are diversified across the rest of southeast asia and the u.s. so what we expect to see is they'll continue to fly what capacity they can and as soon as things are cleared up with the virus, they'll build back up, but you know in terms of their financials, we expect that they'll do what they can to keep costs balanced >> all right thank you very much. appreciate your time today >> thanks very having me >> make sure to tune in tonight for a special special report on the coronavirus at 7:00 p.m. eastern time now to the subject of so much discussion today, the bond market rick santelli track iing the

action rick sxwl hi, kelly and yes, i've been watching all our great coverage on cnbc and many guests believe that the treasury market indeed global interest rates are stressed. they're not stressed this is one of the most orderly trades i've seen in like forever. what the deal is isn't the krohn as much as it is that rates have been going down for years. this isn't helping look at tens down about 3.5 basis points. let's look at year to date charts here's a year to date of tens. look at year to date of guilty in the u.k been through brexit and everything it's at 55 basis point, same pattern and if you look to the west, you see french ten year oats at minus 16 also the same pattern.

at the end of the day, what's driving markets here really is negative rates and certainly some flight to safety, but stress, not stress, trending tyler, back to you >> all right, rick, thank you very much. still ahead, trickle down election economics how a former new york mayor ndchael bloomberg's ad speing could be a boom for some businesses we'll explain that one next.

michael bloomberg spends hundreds of thousands on tv ads. can't get away from them they're everywhere >> you can't and his 300 million ad spree has created a historic windfall for local tv broadcasters who have seen ratings soar on the bloomberg effect he said he will double his spending after iowa which could bring his total to over 600 million. much of that going to three of the biggest local broadcasters and tyler's own tv set next star, sinclair.

when bloomberg has spent $36 million, sinclair, next star and sinclair are also big in texas where he has spent nearly 30 million. gray is big in texas as well as the south. shares up over 25% since the news in november writing that broadcasters are jazzed to have him in the race he's projecting 3.5 billion this cycle, up more than 11% and setting an all time record bloomberg is also driving up ad rates. in north carolina, rates jumped as much as 23% after a major bloomberg ad spend and in houston, they were up 45% and that is, how does that work? >> it's supply and demand. there's not much space left and the local broadcasters aren't

stupid we can charge more for this. it's not just the other candidates, it's the car dealers. the restaurants, all the guys that are advertising in local stations are now paying more this could be more than a one time impact. it could be a bigger boone >> the bloomberg boat is liftin off ships. >> unless you're a car dealer. >> you're not liking bloomberg at this point. >> it seems to have a real impact we've seen tom steyer pioneer the i'm going to sell fund go direct kind of campaign. didn't get a lot of traction >> i agree i was surprised. i felt like tv advertising doesn't work people have their minds made up about candidates, especially at this point in the race he's up to third now nationally by some polls and the only thing he's done really is advertise. on digital and television. >> what do we know about theworks and larnl national broadcast.

those numbers have to be going up >> these charge for local news time but during the network news broadcast, which is also prime time, they're getting a cut of that as well so this will spill to the bottom lines of the major networks as well as all the affiliates so it's great for everybody >> thank you very much well the future was supposed to be green for cannabis, but the stocks have been getting crusheded. we'll explain why pot is still under pressure, next ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. she is on her way to our house. what? i got it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected.

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welcome back for "power lunch. it's been a hard ride for cannabis despite many thinking 2020 would start a turnaround, the down trend continues so far they're running into a lot of regulatory red tape. some are now being hit by layoffs. troy, how has it impacted you? i guess your dollar goes a lot further, but what about the existing investments >> yeah, these stocks have been hit hard because of the regulatory challenges and the roll-out in canada, exports not meeting expectations, but these

layoffs as well as some of the write-downs, these are lagging measures they're the results of the stocks not being down. but i think, you know, we're excited, our members are really excited, because the fundamentals of the market are better than they have ever been. in canada they did 1.7 billion dollars in retail sales, and it's procorrected as to go up to 6.2 billion based on a report we put out. that's a 30% compound rate they'll be rehiring soon, so i think that's something to really be considered in this whole shift. >> even something that's a big market does not necessarily mean it's a good business aurora is down 8.5% today, trading at a buck 50 it lost its cofounder and ceo

terry booth last week, plus employing a lot of cost-cutting initiatives. it doesn't sound like this company thinking it's going to turn around soon. >> the old saying the pioneers get slaughtered and the settlers survive? the companies are not all created equal. different ones took different strategies to it is to where they are, bottom line is more people are buying cannabis from regulated establishments today than they were yesterday that's to be true for a long time the question is which companies will be best suited to take advantage of that. when you see the ceo changeovers, look, if a team is losing, you know, has a losing streak, you change the head coach. i think that's what we're starting to see, that the kinds of people who will lead these companies into the next session of this industry may have different skills than the ones that were, you know, visionnary

enough to take the big swings to get us here. and, you know, things always haven't worked out exactly as planned. if you look at the dot-com boom, for example, we had that big tumble, and we saw it all take off again. the difference between now and then is that now we actually know that people like cannabis the political winds are flowing in the right direction, so eventually it will be a huge opportunity. so a lot of people are thinking that now is the time to buy a lot of these, as long as they do their due diligence. >> not today the four stocks we just showed are all down about 6% to 8% today alone on a day when the general market is up crash been the canadian market is one thing it's a nice market, no doubt about that, but the u.s. market is the big one there are so many regular

impediments that are hanging in there stubbornly it's very difficult to do interstate banking involving recreational cannabis. two, there's restrictions where the cannabis must be grown in order to qualify for sale within a particular state and is it going to take some sort of national declaration or legislation to do it >> yeah, i think that we're going to see a bunch of states with ballot initiatives this year on the ballot for legalization, as well as many states considering passing legislation this year. so we're going to see a bunch of new markets come online. of course, it takes a few years for those markets to mature, but things are moving in the right direction, and federal reform i think we'll see some federal

reform in the next year or so, but as far as ending federal prohibition we're probably at least two, maybe three years away from that, and the presidential race will make a big difference perhaps on that as well. >> troy, we appreciate your time today. >> thank for having me and "check please" is next don't forget you can always watch or listen to you live on the go on the cnbc app we'll be right back. when you look at the critical issues facing our world,

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we're going to check in with seema mody we've soon some strength in nvidia that stock is up about 4%. kelly and tyler, back to you. >> thank you very much so oscar ratings were down 20% from the year before it's kind of a slide that's been taking place the highlight was when the non-host hosts, chris rock and steve martin had some fun at jeff bezos' experience he actually laughed at this. how does it feel to have gone through a divorce and still be the richest man in the world there, he actually liked that

joke. >> but sitting in the audience, when jeff bezos has now become this mainstream thank for watching "power lunch", everybody. "closing bell" starts right now. we'll see you right back here tomorrow hi well cup to "closing bell. i am brian sullivan in for wilfred frost once again we're here at the post with the department of justice points its finger squarely at china over the 2017 hack. we've got a first on cnbc interview with the kreismt off equifax. i'm sarah eisen. stocks errors with the nasdaq leading the group with a fresh high coronavirus remaining in focus as companies weigh in on the