bancorp. what do you really think happens here? is this the sector that continues incredible run its had since donald trump was elected? >> i think it does but i don't know if earnings show it. this is rear-view mirror, all fourth quarter earnings. we don't know what type of tax cut or what type of stimulus package we're getting. everything is going right now what is the body language of the manager teams. you saw jamie dimon for jpmorgan talk very postively not just by the u.s. economy but the global economy. that is what people will be looking for. liz: right. >> not necessarily what they earned in fourth quarter. >> listen, great to have you. thanks so much, paul. >> you're welcome. liz: appreciate your perspective. listen to that guy. he knows. when we come back, i do have breaking news to tell you about an nfl game for the playoffs. you guys can not miss that. i really mean this this is important. i know a lot of you guys are football fans. stay tuned i have that and wild weather in the midwest. ice storms.

banco bancorp. ftse and xetra dax a couple points higher. cac 40 and ftse mib pulling off a bit. big stories in europe. shares in pearson tumbling after the company issued a profit warning in the face of slumping sales in the u.s. the company no longer expects to reach operating profit goal for 2018. pearson also indicated that it's looking to exit its 47% stake in the publisher random house. >>> the pound is continuing to bolster b bolster burberry's fortunes as sales leapt 40% in the third quarter. it helped comparable retail sales grow by 3%. the luxury group plans to change its ceo in july and the profit outlook as well. and asml higher by 4.5%, having reported forecasts topping full-year net sales and gross profits. the chipmaker says it expects the healthy demand for memory chips in the fourth quarter to continue into the start of this year. and novozymes posting fourth quarter sales which beat estimates and it announced as well a share buyback program up to 2 billion danish krona. but they also published plans to cut 198 jobs as it reallocates resources to capitalize on hi

bancorp, it's their top pick in the space. they start with a buy rating. they say u.s.bancorp is a rare bank that can generate value because of its high business mix and its solid track report of expense, risk and capital discipline. they have a $60 target. >> second stock, exxon. wells fargo has downgraded the oil and gas company to market perform from outperform. previously they had expected exxon to pursue an acquisition during the oil price downturn as a way to deliver growth and returns. lots of talk about that one. oil prices were crashing, that's when the big players step in and buy good assets on the cheap. they didn't see that happen. wells fargo says that window is closed now, so they're stepping back to neutral. that's it. >> i misinformed viewers, it's two stocks, not three. i was erroneous. >> see you back in two. >> hello. welcome to the second hour of "power lunch," two hours until the closing bell. here's what we're watching this hour. president-elect trump's first news conference since winning the election starting with a bang. he didn't pull any punche

charles schwab, td bancorp gaining on numbers. back to you. david: phil, oil getting hit hard, why? >> main bay because the dollar up a bit. increase in shale production. energy information production said shale will first increase in production over three months and it will go up over 56,000 barrels. we got a comment from the international energy agency it is expecting a big rebound in shale. i think the market is getting a little bit too excited about this because it will take a long time for the shale production to meet the opec production cuts that should be coming but the market is taking that as a negative but let's talk about gold real quick. these janet yellen comments will be very bearish for gold. gold saw only the second down day this year. i know it's hard to believe but it is the truth. dollar rallying higher rates, it will not be good for the gold market. back to you. david: phil, thanks. melissa. melissa: most critical piece in fixing the obamacare puzzle, his role at least, health and human services nominee tom price making his case on capitol hill. adam shapiro has

still seeing pretty substantial gains in companies like regions financial, keycorp, and fifth third bancorport their earnings next week. it's really since the election we've seen these companies outperforming. here's a chart here. the blue line looks as the regional banks versus the financial index, the white line is the regional banks versus the overall s&p 500. you can see that they want positive on that outperformance, in particular after the november election. outperforming the s&p 500, but outperforming the financials as well. a lot of this has to do with what he's companies make money from. as opposed to say, a j.p. morgan are some of the other larger banks. they get a higher proportion of their revenue from lending money out people and taking in money from people. so, the net interest margin and its connection to interest rates is a more important relationship even for these banks than it is for the large banks. here another way of looking at that. this looks at the regional banks reliance on net interest income. that is expressed as this spread between the money that they are loanin