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tv   Power Lunch  CNBC  February 14, 2020 2:00pm-3:00pm EST

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three different financial institutions one nor checking, saving and investing and split your money that way and think of ways to save it in an i.r.a., emergency fund or if you have to pay off the debt towards that highest interest credit card. >> or use the money to not rack up the credit bill anyway. longer discussion. thank you so much. mention, cnbc and comcast are investors in acorns, does it for "the exchange. see you on "power lunch. thank you, see you here in a moment welcome. i'm tyler mathisen stocks set to end the week if not the day in the green second week in a row as tech stocks lead the way up, but, they're up double digits this year one tough strategist says there's a different sector about to soar. tell you which one it is and why. plus, retail sales and consumer sentiment meeting the streets expectations, but something is below the surface that could indicate trouble ahead.
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explaining that. later, in honor of valentine's day, tim seymour is going to do his best cube ed impression and tell you which storks on wall street you should love "power lunch" begins right now. thank you, tyler welcome to "power lunch," everybody. i'm kelly evans and stocks are pulling back from record highs major indexes are still on track for second week of gains in a row and best month since june. dow down about one-third percent now. look at boeing one of the reasons why near session lows and down more than a percent on news that united says it's canceling all 737 max flights until september now. boeing down 1.25%. get to bob pisani at the new york stock market looking at damage done to the s&p below the surface. bob? >> yeah. boeing's not helping caterpillar, ibm not helping today. pointing out, kelly the right. still up 1% for the week despite
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all these concerns she you the s&p for the year new highs the other day. 4% were gain for 2020 so far that's quite impressive given all the issues we have here. want to explain what i think is the main reason, what people tell me the holding up is. no global outbreak jefferies highlighted it today the rick for potential outbreaks is there but we haven't seen it and why the market is holdings up well. people are seeing damage bank of america, u-shaped recovery likely an l rather than a u shape recovery and, of course, everybody believes the federal reserve is going to come to the rescue another reason the market keeps holding up there's damage this week alone, the energy complex continues to drop. seen big names here. occidental, exxon, apache, marathon down on the week. s&p up 1%. look at longer term. i mean for the year. there is certain complexes that are notably weak look for example at the cruise lines here those are obvious ones
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this is for the year to date i'm looking at oil complex. many, many stocks down 15%, 20%. industrial complex,m, caterpillar united technologies down, 3m and declines fairly typical. yes, up 4% for the year but seeing below the sushs a lot rf of damage. and michael aronne has three surprise predictions for 2020. first market euphoria arrives tossing aside predictions for modest returns and sees a market melt-up and calling for health care a laggard in 2019 beating the market this year and finally the mighty u.s. dollar will continue to stay strong he's been right on 10 of his past 12 contrarian calls dur s g the past four years. that's good. and he influences this under his watch. and ron insana joins us as well.
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michael, start with you and get ron's reaction here. you say what's missing in the market so far, i think a lot of people would agree with you, is euphoria and that we are on the cusp of that what tells you that euphoria is building and then play that through for what are it could mean, not once the euphoria breaks >> there are a number of things to indicate that investors are getting to that euphoric moment. they're not there yet, tyler, but on their way so s&p 500 futures positioning is the strongest it's been since 2013. equity flows into exchange-traded funds so far this year, $45 billion i look at the put call ratio and it continues to signal that investors are very bullish from that standpoint. i look at the aaii sentiment the survey bearishness is very low. way below historical levels.
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look at all of those things and it signals despite the risk and coronavirus markets keep touching all-time highs tnchs is on the cusp of what you would describe as a melt-up and then we'll come back to the idea of what happens after melt-ups. michael points to several internal market internals i guess you call them. indicating that maybe euphoria is about to descend upon us? do you see that? if not, why not? >> partial it differently. different types of euphoria. 1987, melted up and crashed largely a professional experience few individual investors involved go to 1999 entire country in it, a cocktail party conversation everywhere same true for real estate in 2007-08. a lot of individual investors actually continuing to drive most money towards fixed income. not necessarily towards equities you can have a euphoric moment
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in the markets that doesn't include the general public and still overvalued and technically overbought but a different kind of event than what we've seen in the past. >> yeah. saw as you mentioned just last week, huge bond, on pace for $1 trillion this year going into bonds. michael, stick with the stock market for one more moment why do you think health care is a compelling investment now? >> i think the thing with health care that's interesting. last year underperformed in the market by about 11%. look at the exchange traded fund flows for the health care sector over the last 12 months, and about 4.7 billion dollars came out. sentiment poor from that perspective. as a result makes health care second cheapest economic sector of the 11. only the most hated energy is cheaper at this point. here's the thing, kelly, interesting. that analysts have actually been increasing their revenue and earnings per share expectations this year for the sector most other sectors have been declining. so to me that's a very favorable result and then lastly, you get
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all the structural tail winds, aging democrat graphic, continued r & d spend to end awful diseases and longer life spans. not only here in the u.s. but kind of everywhere this should be a boon from a longer term perspective for health care. >> shrugging off medicare for all and all that talk? michael? why they underperformed last year the political overhang is creating an opportunity between the sentiment and the fundamentals i think the fundamentals will win out as we get clarity on the election later this year. >> talk to us about health care, ron. what do you think? >> doesn't matter who wins the presidency unlikely the general public is interested or at least 150 million with private health insurance through employers interested in giving up that option and so we've seen there might be some structural change to different health care programs whether a public option, but medicare for all seems doa. as a consequence, one reason why health care would come back if
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it comes back. assuming fundamentals support it and people catch up. >> pouring into bonds, ron, your point, does that have larger implications do you view it as a missed opportunity to get into the stock market or do people just think -- it's not as if valuations there are compelling >> no. 160 on the ten year. it's not exactly like we're near highs and you'd wanted to take chances on bonds look, it goes back to something we talked about almost a year and a half now you have to buy quality whatever it is you buy and can't put a speculative lens on this market. the rick, further out on risk horizon, the more chance you're taking seen expanding junk bond spreads, a break in some of the credit indices i'd be careful there doesn't necessarily suggest that you should rush into overvalued stocks either. because you're kind of playing with the same degree of fire. >> ron insana, thank you michael aronne, appreciate your time today. number of coronavirus cases
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is continuing to rise. more than 60,000 now most still in china. today china is trying to get back to normal five apple stores reopening in beijing. josh lipton has more what do we know? >> reporter: so kelly, in total remember apple has 42 stores in china and some of them are back open for business. apple is now saying that one of its seven stores in shanghai will reopen saturday this follows apple's decision to open five stores in beijing. the other stores remain closed for now. estimating 42 stores account for about 10% of greater china revenue in a given quarter importantly, apple's online store does remain open i caught up with gene munster at lou ventures he says isn't a big deal financially but important for nor wrereason showing apple is feeling better.
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what about before apple suffers a shortage of products apple should have 30 days of finished goods seeing that apple should be ak for now, but really does depend how long production is disrupted, what's the ultimate length and breadth of the outbreak and noted, record highness late january. back to you. >> josh, thank you josh lipton in san francisco coming up, u.s. consumer spent a trillion dollars over holidays sounds great reason to be concerned when you dig deeper into those numbers? plus, where the corporate cash is going in this 2020 presidential campaign. "power lunchwi tl u, teth. " llelyo always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice.
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u.s. retail sales during hol dal season topped $1 trillion first time ever according to, and in fact gross domestic products and "rapid update." headline and numbers beneath the numbers. >> gdp and relatively retail sales and production combined with other factors to drag down the cnbc rapid up date. and forecast on the street falling 0.1 to 1.4%. one of the lowest for the quarter. a lot of data to go. don't panic. early estimateses from 2.2 to just 0.4% and rvs at 1
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godman sachs and moodys. and from jpmorgan not that bad the mighty consumer is looking human after all. retail sales up 0.3. not a bad number building sales 2.1 furniture 0.6. clothing 3.1 down. put three together all could be a factor with weather. a great sort of january for weather for building and that kind of stuff. but the clothing stuff may be mittens and sweaters and gloves and hats and the whole thing, maybe they stayed on the shelf you have a decline could be priced as well and down 0.5 first quarter is weak. rebounding depending on the effect of virus, of course and when the 737 boeing max starts back up. >> a question on gasoline. measuring sales. right? >> that's right. >> so if the price of gasoline comes down, sales come down?
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>> exactly right sales come down. correct. >> i have to think also in january maybe more this year than prior you tell me if you know or don't, that retailers are trying in clothing to move inventory they still have stuck there. so that the pair of jeans that went for $79 in december are now going for $49? >> except for jeans for us, because we're extra large. don't get the discount exactly right. yes. jeans, maybe not, but what you have is you can -- and a lot of economists do this retailers, look at the weather anomaly maps look at the weather anomaly map for january for the united states it is all orange. i wish i had that with me. something sigh look at quite a bit. >> meaning warm? >> warmer than average, than is should be. >> no mittens for you! >> decline in production why? utility output fell. that's a big reason. >> ah! >> we think the money might go elsewhere, but doesn't show up right away.
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>> kill me one more question, steve >> go ahead. you're the anchor. >> retail basically flat lined the last five months >> a rough five months. >> why do we know why tariff related >> could be. could be one factor. i'll explain quickly you have the tariffs pre-announced in august. to effect consumer goods didn't happen. took effect in september there's a sense out there there was pre-orders a strong july and a very strong august plus i throw out this idea of the july amazon prime date. >> oh. >> i think that's messed up with the whole rhythm of seams for the year. >> interestingants and not counting the tariffs started with internet sales that well. could be more out there. >> something is going on now. >> flat lined in the retail sales report but then tyler comes on tells me more than a trillion dollars. >> have a good weekend. >> heard about cracks in the consumer our next guests are finding
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bright spots. great to have you here roxanne, begin with you, your winners, the stocks that have done well for a while. t.j. maxx, lululemon, theories what's going on with the consumer overall here? >> sure. thanks for having me the off-price space structurally has thrived for years and that hasn't changed what has changed is the access to inventory as department stores struggled, as online has been a difficult model to predict inventory, demand and supply, there has been an abundance of inventory for off price. couple that with a class of consumers that are continuing to focus on value, and the experience of the treasure hunt and off prit continuce continueh winner on lulu, much more not only athletic, the athletic segment
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continuing to do well, but companies specific execution as relates to innovation, dtc growth as well as international growth and particularly the strength of the men's business. >> sure. and that, of course, well documented so that has been one of the trends making in retail and the other where you're looking, walmart, target, costco, dollar general, dollar tree value proposition just discusseded. why do they continue to do well? >> value and convenience has been really popular with consumers. you can see that with results of walmart, target, costco and amazon really big. retail sales came out to be a little lighter in december, but we still feel that consumers have strength. year over year retail sales number it's still 4% pretty good considering 2019 a strong year. even if you lowered december sales, you're going to find that it's still 5-plus percent growth
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x gasoline that's year over year. consumer is pretty strong still and value convenience is resonating, because you can't really, you know have a consumer come in and pay more for people that are looking for convenience. >> stay right there. a news alert on attorney michael everybo avenatti's nike trial. >> three counts, guilty. confirmed right now. michael avenatti, disgraced lawyer used to represent stormy daniels in her cases against then president trump is found guilty in new york for the extortion trial here three counts of extortion now. again, a trial that was highly kind of publicized because michael avenatti was accused of trying to blackmail or shake nike down for about $25 million in an effort to try to get them to settle a case in which he said if he did not he would shave quote/unquote billions off their market cap a case closely followed not
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because of avenatti as a personality bought it affected a dow component and the biggest athletic apparelmaker in the world nike we'll follow the story three counts in the extortion trial, all guilty. back to you. >> resume our conversation about retail with nicky chadha and roxanne meyer. talking to stephen a moment ago how temperatures and weather patterns affected sales at clothing stores or presumably have i want to ask whether you've seen that in the form of discounts of winter merchandise, either stuff stocked in december and didn't move. how's the weather playing into what's selling and the level of discounting? >> yeah. i think you have to step back and think about what's transpired over the course of holiday. we exited holiday predicting that this would go down as one of the most promotional environments since the recession. and i think for some retailers, that did play out. you look at the department store space, for example
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which was extensionally weak you take the merchandise that didn't sell in december, january means that you're going to discount that at rock bottom prices in order to end the fourth quarter clean that's really what i think year suing now. the bigger than expected weakness from the holiday period now playing out into january results. you couple that with the weather, and certainly on the margin that does have an impact. >> finally, steve mentioned a theory about this plateau in retail sales could be timing of amazon's prime day and taking a bigger and bigger wallet and mind share for suppliers and consumers since you cover a lot of competitors, walmart, target, so forth, do you see prime having an impact or not? >> amazon is having an outsized impact in retail sales no doubt look at results they just reported on the top line growth. it was tremendous compared to the rest of retail yes. i think basically flatlines it look at december and november sales. holiday sales are pulled up.
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right? people are buying stuff. discounting on ecommerce sites like amazon and not necessarily buying everything within the two, three-week period in december, upping retail sales. there is a certain amount of flattening's retail sales because of the ecommerce impact. look at ecommerce in today's report, 8.5% growth you've over year continuing to be tremendous growth >> yeah. all right. thank you both appreciate it. >> thank you. >> thank you. this valentine's day "power lunch" wants to help you find your, love your perfect match. find your perfect match for your portfolio. boy, i butchered that. traders weigh in whether to swipe right or left on tinder's parent company match and then cupid himself. the lord of love. tim seymour joins us to tell us whether to love or don't find hot stuff "power lunch" will be right
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back. ♪ your love is all i node through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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this after getting kicked to the curb over the past month down 15% time to swipe right on this stock? meaning you like it. or the other way bring in trading nation team kregg johnson of piper sandler and asset management representative start first, craig you say swipe left bad news for the stock absolutely swiping level the stock, retrending the line intact since 2017 and breaking below 200 day moving average on the charts if you also step back and look starting to make a bit of a double top in here if the stock really starts to break below that uptrend support line, next support comes in at 67 i think this is probably a better match for boris. >> oh! all right. >> boris, i think craig teed you up beautifully here. >> exactly never swiped right or left in my life, but i am a bull on match because basically a long on
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match is really a long on tinder and tinder is a de facto standard on online dating. take the premise online dating is the future of human dating, this is a transformative social impact, not just in the advance industrialized countries perhaps globally and internationally markets, tremendous growth for the stock. the companies doing very, very well, and i think that as an opportunity going forward, it presents a very strong long-term secular trend. i don't see anybody else coming into this space that can compete with them at this point. they have a great platform and dominating the space. >> boris swipes right. craig swipes left. point out aic is the parent of this company and own 80% and intend to spin it off, match, by end of second quarter. gentlemen, have a great long weekend. don't do any swiping. for more "trading nation" head to our website or follow us
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on twitter @tradingnation. >> keep it here. it's friday, vd valentine's day if you're not in love, you're about to be. fish stocks to either love or dump. plus new cnbc data shows american ceos are donating to american campaigns more than ever before. who's dishing out cash to who and how much and retail systems throughout games. a slam dunk or a miss? all this when "power lunch" returns. >> announcer: and now, the latest from tradingnation.cnbc.com and a word from our sponsor.
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attorney general william barr assigned an outside prosecutor to hook at the criminal case against president trump's former national security adviser michael flynn. the review could trigger more accusations of interference by the justice department into the work of career prosecutors. a crossparty of american senators visiting ukraine first since the impeachment trial of president donald trump holding talks with the ukraine president, selenski. >> we come here, because we want to show our bipartisan support with the courageous people of ukraine and also to demonstrate how impressed we are with the dedicated efforts of president selenski and his team and not only fighting corruption, as he said, trying to defeat corruption. >> the three of us are different parties. we voted differently on the matter of impeachment but are here together, because there is no difference between us or between republicans and
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democrats in congress in our support for ukraine. >> a bipartisan statement on ukraine. that's the cnbc news update at this hour. back to you. >> dom, thank you. breaking news out of the white house on a new tax package. go to kayla tausche for details. >> considering ways to entice households to purchase stocks. according to four senior administration officials familiar with the discussions. one proposal would see a portion of household income treated at tax-free if it were invested in stocks according to these officials under one scenario, a hypothetical scenario, a household earning up to $200,000 could invest $10,000 tax-free in the market as beyond contributions to traditional 401(k)s. american households owning stock fell by ten percentage points after the depression despite the rise during president trump's ten you're so far only 55% of households are currently invested according to gallup
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this a package of tax cuts expected to be introduced this fall before the election as an economic shot in the arm, which the white house now calls tax reform 2.0 one described the package as conceptual another idealistic because it's needs congress' approval to become law they want to keep economic growth humming especially ahead of voting in november. >> and tax-free? capital gains tax would be zero do you mean? >> all to be worked out. a lot of proposals are big picture. they are hypothetical. they are essentially throwing ideas against the wall to see what could increase stock ownership and increase take-hon income, investment income for people unclear exactly what it would do to the capital gains portion or or when that money is realized certainly interesting even despite all the gains in the stock market up until this point, that the white house believes that americans should
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have an opportunity to get in at this point. >> an interesting concept. whether it would affect gains on the stock that would not be taxable, dividends that the tax or funds might pay that would not be taxable or get a tax credit or deduction for the amount invested? right? that's the way basically a 401(k) works it turns taxable income into, it's a salary reduction plan basically. >> tyler, to access a 401(k) or a tsp, the government version of the 401(k), were you have have a full-time employer, a company or federal government this is a way for gig workers, 1099 workers, part-time workers, to be able to access some of that tax-free gain in the stock market but of course the obvious down side is, what if all of these americans get in and then the stock market falls certainly that would be a major risk if this were to happen. >> one point on this, one thing to set up a structure that would be meant to encourage savings
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into, say, we want more stock participation, but for a long term to realize those benefits over time it's another thing if you just say, hey, start putting mcin the stock market today and take it out this year, whenever you want. >> right, and again, not only with the market already at all-time highs but potentially creating a lot more enthusiasm about getting in, to your question it's unclear what would not be taxed. you don't pay a tax when you buy a stock. right? it's unclear whether -- what this is is on election tool. this is to draw a sharp contrast between every other candidate on the democratic side. >> yes. >> including joe biden, and michael bloomberg, that wants to tax capital gains. ie. >> what you invest in stock. same as ordinary income effectively in bloomberg's case double what you pay into capital gain when you sell a stock even though they're saying this is for the middle class, this is basically them being able to tell voters they want to raise taxes honoring including when you buy stock and save, we're going to do the opposite mpl.
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>> is it broadly appealing tends to immolate higher income people, various investment, means a big hit, but this plan is meant i think to be broadly appealing. wond fwer if it will be >> wipe out capital gains taxes for anybody that makes less than $200,000 on stocks, yeah appealing's what about the revenue you're going to lose on that and how do you measure it? and then how to you declare maybe a separate entity that can then buy stocks? a complicated issue. but this is a campaign tool. >> yep >> drawn to draw a contrast. >> if i could draw up one more distinction. >> go ahead, wait officials talk about this, that income. money you are making at take-hon pay exempt from federal tax or state and local tax. if you are putting that money into the market. so where you would see the tax-free basis is when you are earning this money if it goes into the market, not on the point where you are selling it although that could be a one
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potential lever they decide to pull or tweak, but the way they're discussing it now is this money would be free of income tax, if you end up putting it into the market. >> what i was -- maybe clumsily driving at there a moment ago. said you could do it one of two ways either you waive the tax on the back end when you sell or give somebody a credit or a deduction up front whether it's earned, you know, w-2 income or 1099 income or gig-type income. >> right. >> you just clarified that ip see down there, this is a plan that is curiously not going to be released until, "the fall." i wonder why >> well, larry kudlow has si sa it were come out in september. vice president mike pence said you'll see it by end of year the officials i talked to early fall you need congress to pass this there is an injection of realism by sources i
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see to this won't go anywhere until 2021 but essentially a promise to voters if you reerect this administration this is waiting in the winging for you and a question of the payroll tax cut. something floated in quarters prior to right now i'm told this is a tool in the tool kit only if the economy declines significantly, whether growth goes, you know -- essentially the economy take as nosedive if we go into recession or looks like the economy's going to recession, then an only then is when the white house would consider a payroll tax cut. >> fascinating this would be a way of avoiding income tax by putting thatten in into the market that would be broadly appealing. >> a federal subsidy of the stock market. >> yes exactly. >> and the question is, at these levels, in this market. >> which already exist there is a federal subsidy for the stock market as a way of saving. >> do you need that? >> fascinating. >> interesting, too, there are other investments federally
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subsidized by investing in a principled residence because you get to write off a certain amount of, not as much as you used to but amount of interest on the purchase. >> right. >> kayla, thank you. kaihla tausche, more detail on the website. thank you. to the bond market we go rhys santelli tracking action at the cme. >> hi, tyler it's been an interesting day not as much buying as many traders expected with regard to some nervousness over a three-day weekend givening the uncertainties of coronavirus look at one week of twos moved up from 141 to 142 yield meaning down three on the session. but up two on the week look at what happens when you go further down the curve one week of tens moved from 157 to 158. meaning know down four on the day unchanged on the week, if you want the 30-year bonds, down two on the week. basically it's a flattening event. not a lot of fresh buying come in getting towards the end of the session.
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finally, once again, the dollar index really soldier marches higher all week. one week of the dollar index looks once again to close at the best levels basically since september. the end of september but that level only a thermd of a cent away. take that out, at the best level since may of 2017. that would be a 33-month high. back to you. >> rick, quickly what do you make of kayla's story here about this possible plan letting people invest in stocks without paying income on that money? >> absolutely wonderful idea and i know that part of the discussion was whether it's political or not listen, let's all be practice ma pragmatists. good and bad things are thrown out in front of a political election this is actually quite a good idea. >> mr. santelli, have a great weekend. thank you. coming up, when you mention ai to a basketbaskba fbaetllan,y
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thinking allen iverson but now, ai bringing the game to you. stay with us. >> announcer: the bond report is sponsored by pimco. ♪ don't just plan to retire. plan to live. an annuity helps cover your essential monthly expenses, so you're free to live the life you want. find out how an annuity can give you lifetime income at protectedincome.org
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a news alert tiger global. >> this is the hedge fund run by hedge fund titan julien robinson's protege chase coleman. a noted tech investor. new stakes in google parent company alphabet put on by tiger global, reduction in stakes and other tech giants including facebook, amazon, netflix and microsoft all of those mega cap companies getting stakes reduced by tiger global as of, again, december 31, 2019. they've completely gotten out of their stakes and beyond meat and the real real. interesting one for watching what's happening with ride shareishar sharing companies. uber upped stakes to 21.6 million shares from 6.6 million shares about a 15 million share bump making that stake worth at current prices, tyler, kelly, around $850 million.
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big call from tiger global on uber among the big names coming out in this. i'll continue to pore throughit. that's the headlines back to you. >> thank you. and the ratings down as millions of fans instead watch games in bite-sized highlights posted on social media that's what my 14-year-old does. now the nba is turning to computers to pick the best dunks and the biggest shots. we have the details. this is a game breaker, right. high-flying dunks, fadeaway jumper highlights generated by artificial intelligence all this weekend watching on phones and social media a growing need for more content customized to that consumer an israeli company is licensing artificial intelligence technology to the nba. >> we devote this technology that identifies each and every play of the game our system analyzes it in realtime, based on visual
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information. based on audio analysis. looking for sound, response from the commentator or crowd and looking at real time play-by-play data that comes in. >> the box track play-by-play and announcer's voice, impact of time and score and crowds reactions, all of that information ep hads create a highlight. after doing its first deem with the nba partnering with other pro sports leagues to automate. and saying they produced over 13 million highlight clips. and saying the automation does not like like its human editors but allows an increase of focused storytelling. >> you could
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strong it's all the highlights >> all it is anymore. >> and this show. >> "power lunch" highlights only got it, one minute. >> we don't want that. thank you. >> got it. up next, for all of you lonely heart investors out there, tim seymour wants to help you find love. we give you stocks and tim will emhe"ps to love them or dump th wn ower lunch" comes right back. robinhood believes now is the time to do money.
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bloomberg: i'm mike bloomberg and i approve this message. let's listen to it for a minute. ♪ find me somebody to love ♪ find me somebody to love today is valentine's day if you didn't know that by now, you're in trouble. if you're single, married, ready to mingle, we want to make sure your portfolio feels the love. we've got five stocks in our love doctor tim seymour will
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play match mares whether to love the stock or lose it. dump it. >> i'm ready to roll i think i am it's a lot of pressure. >> tesla. >> tesla du dump. >> whoa, love is blind sometimes. >> if you're looking at valuation, corporate governance, the demand story, the profitability and the core car, i've been on the wrong side of this trade, but i do think love is blind when it comes to tesla. i don't think investors are really grounded in this relationship they said to believe something they're thinking -- we do this with people. we want to believe they're something they're not. >> what about apple? >> apple, i love apple. >> i think in the case of apple,
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i believe in long-term commitment if you think about the evolution of this stock, it's been largely a great investment, when we talk about it, is it a trade, is it an investment. no longer is this flashy or elegant hardware with nice curves this has grown into a company that's a services business, a recurring revenue stream it's a multiple that's different right now, frankly, after the move it's had, but i love apple. it's hard not to love apple. >> i'm going to cook my lovely bride a beyond meat patty. >> that might get you dumped here. ♪ love hurts ♪ love smarts >> nazareth, by the way. >> very biblical >> beyond meat is very attractive to be drawn to plant-based food this is a secular story that
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continues. i think if you think about the impact on the economy -- the ecology, excuse me, the competitive landscape is something that no one is pricing in the valuation is something that no one is pricing in it's a leader in a secular story that everyone believes this is blind love, not based upon reality. >> you could say the same thing about canopy's growth, but this whole sector has so hard hit, but some glimmers of hope. what do you think? >> are you high on it? >> first of all, i love this and the buzz around canopy, i think is the romance around this $400 billion global addressable market, whether you consider it holistic or the direct market, the adult market, the lifestyle market cap pit has very good numbers. i'm note going to tell you i love the valuation
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i'm not going to tell you i love some of the et cetera they bought, you but i do love this management team and balance sheet rational cyst. 2.0 for cannabis stocks will be different. there's a lot of haters that dumped at the bottom that may have been the right move, but i love this sector >> we've had a lot of trendy stocks let's end with expedia is that the stock you marry? >> afraid not. i've chased love around the world. >> but you dumped. >> look, i love barry diller back involved in this company, the long-term strategy i think is being refined, but the short-term strategy is about cost savings, $300 to $500 million. what's not sexy, frankly, is the declining top line i think there are better places. i would rather own bookings here, but expedia is nothing
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that i would throw that rose at. >> look at it, 12% today. >> very sexy, you have a high short interest, and that's a lot of this move it's only got back to where it got down off its pedestal. >> you have broken some hearts today, tim. >> well, my mom told me not to do that, but here i am that's what we're here to do tim, thanks. love you. >> love you too. >> "check please" is next, and you can always watch or listen to us live, so you don't miss segments like that we'll be right back. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.
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if they saw you on the street would your advisor recognize you? at ameriprise, we see you as more than a client. that's why our advisors care about what's important to you. they offer personalized advice to help you prepare
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for what's expected and even what's not. giving you the freedom to live financially confident. because to us, you're more than just another face in the crowd. with the right financial advisor, life can be brilliant. ameriprise financial. you might have a reduced check to pay to the i.r.s. if a possible administrative tax plan goes through that would allow you to invest up to $10,000 a year, so-called tax free for people earning less than $200,000 if you put that money into the stock market it is a subsidized way of invests government subsidy to investing in the market. this is a bed headline from kayla in the last half hour or so we've been trying to pinpoint what that would look like, one of the points i'm seeing made is do people have $10,000 even to
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put in. >> bang. that's why it would run into political pposition, that this would be regarded as a giveaway to the investor class. >> although it would be 200 grand. >> but the large number of people in this country don't have anywhere near $10,000 to invest. >> we'll follow that all week and next week. have a great long weekend, everybody. "closing bell" right now. welcome to "closing bell." happy valentine's day. i'm morgan brennan on the floor of the new york stock exchange canopy growth post it's up on earnings, but could it mark a turnaround for the overall space? let's look at

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