tv Closing Bell CNBC March 28, 2017 3:00pm-5:01pm EDT
this, in turn, helps indexes across the board, the dow, the s&p, hitting session highs. >> shall ewe discuss apple on "fast money"? >> we might be. >> a bite of the apple. >> yep. >> thank you for watching, and "closing bell" continues this rallying coverage, and it starts? right now. hi, everybody. welcome to the closing bill. ooem kelly evans at the new york stock exchange. >> i'm bill griffeth. a late day surge for the targets. there's confidence, stan fisher, i don't know if you saw this, telling cnbc two more fed rate hikes this year, quote, sounds right. we have more on whether this rally can last. that'll be coming up in a moment here. >> meanwhile, snap shares falls after facebook has a new feature that looks like snapchat, all
the details ahead with the shares down 4%. >> i saw you guys playing with that this morning. john was a sport in that. president trump signed that executive order that he says will end the war on coal. epa administration scott pruitt joining us to talk about this on a first on cnbc interview. we look forward to that very much. meantime, details on that executive order. we are at the white house right now. >> bill, the president went to the epa to sign the executive order moments ago. he arrived back here at the white house. the president put in all of this in the context of as you say, ending president obama's so-called war on coal. he said this is about creating jobs. here's the president over at the epa. >> my administration is putting an end to the war on coal. >> with today's executive action, i am taking historic steps to lift restrictions on american energy, to reverse government intrusion and to
cancel job killing regulations. >> what specifically is the administration doing here? a couple bulletnknow. first, undertaking review of the clean coal plan president obama put in place. they say, ultimately, that's the first step in terms of ultimately rolling back that plan. they have to do the review first. they are also reviewing a number of other regulations including on methane and a couple other things here, specifically fracking. a lot of this is all generated towards the energy industry. there's bullet points there reviewing methane and bureau of land management, fracking registrationlations. a key one, resending president obama's coal, leasing moratorium on federal lands. they very much put it in the context of jobs, jobs, jobs, that's what the white house is all about. at the press briefing, though, i asked sean spicer, the press secretary, if the administration has a specific number of jobs they think will be created here. he said, he's not aware of one
saying the industry is supportive of this effort, but it will be tough to bring jobs back because of changes in the industry broadly. no specific estimate here as to how many jobs will be created as a result of this. back to you. >> thank you. how will these executive orders impact energy companies? joining us now, ceo of hunter resources, mr. gary evans. >> hello, thank you for having me. >> the president said it's the end of the war on coal. it's not your business per se, but is coal making a comeback? >> i see it maybe eliminating or reducing the reduction of coal in jobs. i don't see it as rebattlization of the industry. the coal industry's having to compete with natural gas, and that's been the biggest problem, and you compound that with
regulation the obama administration put in on clean coal, and that's what's killed it. slow down regulations, maybe the death of the coal industry will lessen. >> i mean, the coal industry's been in decline for some time. is it because of the shift in market forces or the prices? the efficiencies achieved by technology? how much, though, has been regulations imposed on an industry we know has been responsible for a lot of carbon emissions out there? >> i think it's been a combination of two things. natural gas has been unusually low the last five years, which is a direct competitor of coal. the tax on top of that, regulations of clean coal technology that all the plants have to retrofit and get up to speed with respect to new regulations, and they can't compete. when you compare to countries ke china who use coal and are trying to implement some of the same technologies, i think the coal industry just has a tough road ahead with cheap natural gas.
>> meanwhile, gary, talk about the impact in the oil and gas sector. how important are the rollback of the regulations compared with, say, the price of these commodities? >> well, oil and natural gas prices are at low prices. oil at 48. natural gas at $3, and even at those prices, most of the bases in the u.s. don't really work too well. there's only a few that do, like the bay son you heard about, eagle ford, some of the utica and scoop and sacks, so what these rollbacks do, just really slows down the regulation burden that the industry is, you know, taxed with over the last eight years, and i think the main thing is the federal lands are going to be opened up. you know, we have not. able to get a permit to drill a well in federal lands for quite a while. i have friends of mine active in the gulf of mexico, speaking to one at dinner the other evening, saying the regulations really hurt them, but since trump has come into office, the scrutiny
they have been under historically slackened. that allows some. gulf of mexico work to continue that's been heavy burdened by regulations. >> rolling back land leases for the coal industry. as kelly said, it's not necessarily your business, can you imagine people will pursue leases at this point given the nature of the industry? >> well, i think the one that just, you know, was talked about recently up in utah, it depends on the state. if the federal government will relax the regulations, and the states have to determine if their residents want coal. obviously, coal is a bit of a dirty product from the stand point you do surface mining or whether you do underground mining, so i think it's just going to depend on state regulations and what happened there. >> all right. well, we're seeing the coal commodity get a little bit of a boost here, but it's not much, if you consider the amount of what we've just been given. gary, thank you for joining us. >> you're welcome, thank you. >> and be sure to stick around
for our first cnbc interview with scott pruitt in a few minutes as he leaves the signing ceremony there at the white house. or the epa rather. >> as we mentioned, federal reserve vice chair stanley fisher was on power lunch earlier giving a forecast on rate hikes this year. take a listen. >> so with the average forecast of two rate hikes this year, does that seem to you to be right? should the market prepare for possibly more or fewer? >> seems to me about right. to say, that's my full forecast as well, but, yes, you have to be certain. >> well, and coincidence or not, right on time the markets started to take off, we are up 163 points now, near the highs of the session. let's talk about it in the closing bell exchange today with mark from montgomery scott, keith blitz from post nine here at the big board, and cn prbc contributor at the cme in
chicago. keith, you know, how much do you think this is the expectations that the fed's raising rates and implications for the economy on that? >> well, it's just part of the larger narrative we're faced with today. the fact remains up to the selloff in the early tough sessions we had in the equity markets, we are poised for a bounce. markets don't go up or down. we've. riding a high for so long, and when we started to sell off, the call for the 20% correction emerged in our collective narrative, and that was just wrong. when markets get vastly oversold like they did across all the sectors, the industries, groups, led by financials and energyings you are poised for a setback. we got to a buy point on the s&p 500 yesterday, down around 23.10 level. it's bouncing back. you got stanley giving soothing tones to the market. you've got the media snapback in
financials and energy. the dollar oversold is now rallying, also constructive for u.s. equities. th that, especially at the same time it's overbought. that comes together today. that's why there's the rally working here today. >> jack, we have not seen you in a little while, and i just love to know your thoughts on these markets. >> well, i, you know, kelly, one of the things i guess we have to point out is today is t plus three, last day to settle stocks for the kwaur. i feel better about this rally if it were next week opposed to today. one of the things we've seen is the fact that this rally over the course of the last few months has done exactly what it should. it was con pitchlation. you had nonbelievers come in. it's followed by conviction. now, to get to that conviction stage, we need more than the fed or stanley fisher. we need legislative prints. the problem might be we end up like 1981 all over again where the market got ahead of itself. i was there. in college at the time. what happens is we have to pull back in the market. a lot of the tax cuts didn't
take effect until 1983, so all the capx was pushed out. we didn't see real 4% numbers until 1983, so something has got to give. we need to see some legislative certainty. we need more than just this is a promise of policy right now. >> are you following the market in college -- >> were you in college then? pursuing a ph.d.? >> hey, you know what, rick is older than me, trading gold at the time. i have to tell you, yes -- >> wow. >> there was a lot going on. we were the republicans. >> all right. hey, mark, so many motivations in this morning right now. the high expectations for growth after the election as we know, you know, the tax cut, the obamacare reform, and so forth. now we've gotten used to that, up to the lofty levels here. are you inclined to wait awhile to see what happens, or are you willing to commit more money to this market? >> i'm willing to commit more money to this market. maybe not with both hands, but,
certainly, i think we directionally continue to climb higher over 12-18 months because the good news is it was not until it was built under the economy that needed fiscal pro-growth market friendly reforms. that's augmented, hoping to boost activity, unfortunately, it means the market's vulnerable, a disappointment to the extent it's a next year event by way of the legislation pushed deeper into 2017 than had initially anticipated. at the end of the day, the economic news remains sturdy, and evidence no less by today's consumer confidence reading, the highest it's been in 16 years. that's the lot for the market to bite on, build on, and not make huge strides, but continue to advance up into the right. >> so what are you going to buy? >> a couple sectors look good. health care, last year's lagger, doing well this year, i think has strong demographics, certainly underpinnings. there's cross currents with regard to what happens with health care reform, but at the
end of the day, i city think drug companies sell more products into the global market, not just the u.s., five years from now than today. energy, a beat in sector here as recent oil prices have come back $5 or so. looks attractive. i think the supply-demand story outweighs the dollar strengthening story, and the fact is, more global demand than reducti reduction, even with shale coming back online here in the last six to nine months or so. there's been a couple variance, and the oil, particularly, i think buyers can step in and own today and not necessarily have to wait for the market to pullback more to feel comfortable about valuations. >> we're showing burrton there, obviously, one of your picks in the sector. >> yeah. >> also mason, the bioteches and health care as you mention the. >> thanks, guys, appreciate the thoughts. >> you're welcome. 45 minutes to go here. the dow is near session hes, up 167 points. >> think about this. at the low yesterday, we were 183.
from that low, we've moved up 350. >> off the worst losing streak since 2011 in a big way. 45 minutes to go. the s&p's up 20. nasdaq 43. russell 9. >> watch out snapchat, facebook is imitating the app again. social media giant's plan for domination is coming up next. and still ahead, a major battle brewing between wall street and detroit. hear from the leading hedge fund titan who wants general motors to create a dual class structure. why the shares are rallying. you're watching cnbc, first in business worldwide.
like last week's big selloff, we are looking for a big reason, not finding it in the rally today, a number of things factoring in, higher consumer confidence numbers, and just kind of a bounce after yesterday's big selloff. the dow's up 154 points, up 175 at the highs of the session. >> well, move over snapchat. facebook is launching new features on the smart phone app that look awfully familiar. julia boorstn have more. >> shares down 4% on facebook launches three new features that are very similar to snapchat's. facebook's new camera is emb embedded in the app, encouraging user to share photos and videos. we have my phone here to show you how it works. there's dozens of effects like these frames and interactive fitters, and there's partnerships with six film studios bringing licensed content. check out this here from
minions. fun and interactive. now, facebook is also launching a story feature for sharing photos and videos for 24 hours. that's the same format that snapchat pioneered and facebook's other app, instagram, and messenger have each followed. there's also new option called direction for sharing photos and videos with specific friends for a limited time. we reviewed once, just like snapchat. analysts are mixed. jpmorgan said facebook's larger audience would be tougher to grow the user base, and other changes are significant long term risks to snatch's model. the they reiterated the buy rating on snap today with the note titled, imitation is the sincerest form of flattery, guys? >> we used snapchat filters, but apple is working on this, too, so it seems like once this type of technology is everywhere, doesn't that diminish snap's particular edge here?
>> it seems like it does. sorry, i'm going to play around with these as we talk. if you play with them without losing -- without having to leave facebook, that's app advantage for facebook because there's probably some overlap between the user base. this is my favorite one. >> oh, nice. >> it's keeping users hooked for longer periods of time. the more engagement, it benefits them. looking at the family of apps, there's messenger, what's app, all about giving users reason to stay in the family and never have to leave. >> now, these are elaborate. >> i have no idea what you said, julia, we are looking at the pictures. >> thank you. >> i think the answer was yes. >> this is what is from "gaddians of the galaxy." >> your kids will love this. >> hours of entertainment. >> right.
see you later. okay. about 40 minutes left in the trading session here. they took the board away. dow up 154 points right now. >> hedge funds billionaire wall street listens, who is fuelling the rise in general motor shares next? >> also ahead, epa ad min straiter is joining us to weigh in on the president's controversial executive order rolling back the obama administration's energy plan. coming up. ♪ ) it's off to work we go! woman: on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. and each job created by the energy industry supports two others in the community. altogether, the industry supports over 9 million jobs nationwide. these are jobs that natural gas is helping make happen, all while reducing america's emissions. energy lives here. [and her new business: i do, to amjeanetgo.missions. jeanette was excellent at marrying people. but had trouble getting paid.
not a good time, jeanette. even worse. now i'm uncomfortable. but here's the good news, jeanette got quickbooks. send that invoice, jeanette. looks like they viewed it. and, ta-da! paid twice as fast. oh, she's an efficient officiant. way to grow, jeanette. new. get paid twice as fast for free. visit quickbooks-dot-com. (bell chimes) ♪ nice work brother dominic. now we just need 500 more... translated into 35 languages, personalized oh and shared across the 7 continents. (other languages spoken) look abbot, i got it. it's a miracle. ♪ the power of the nasdaq market. the power of 100 of the world's top companies.
the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.
auto dominating market movers like regime motors, higher after green light capital call for gm to split its common stock into two separate classes. e einhorn spoke earlier, listen. >> i would compare it to an ice cream stand that just serves chocolate and vanilla swirl ice cream. if you gave investors the choice, some like chocolate, some vanilla, some like swirl. if you implemented our policy, there's one share of each, so if you like the swirl that you have today, you could keep the swirl. if you'd like more dividends, sell the capital appreciation shares and buy the dividends. if you like the capital appreciation, the low multiple, share the dividends and buy the capital appreciation shares. >> got that? but you get sprinkles with that?
that's what i want to know. green light says the two class stock structure unlocks 13 billion and 38 billion in shareholder value. moody's said it's negative, though. the end of last year, gm's board rejected the plan, by the way, saying it's not in the best interest of shareholders. >> by the way, the point about the credit rating is interesting. >> by the way, tesla is gaining ground today. they say they have 10 cents, owner of chinese messaging app, has purchased 5% stake for $1.78 billion. by the way, did you see the story -- i'm sure you did, about the new company that musk started called neurolink -- >> yes. >> bringing together human brain technology with computers, where they implement electrodes and you can download information the way they do on computers.
>> did you sign up for that? >> i'm thinking that's about the only way i can read "war and peace." >> in the original language. >> download and down. >> back to general motors for a minute. what moody's said is interesting because when david spoke with scott earlier, he said he went to gm and spoke with the credit rating agencies about this saying they could get a blessing if gm let him do that, and so there is more to it than just gm said it would hurt the stock rating, lose the investment grade rating, but this is something that needs that much financing, so even moody's came out after that interview, by the way, saying it would be a negative. >> uphill battle. 35 left in the trading session here. the dow now up 158 points. we were up 175 earlier. epa ad min straiter scott pruitt discussing energy policy on a
welcome back, word the president of egypt will visit president trump at the white house on april 3rd, next week, and stock off the highs of the day. crude oil is higher. that's taking up oil stocks after a disruption of libyan oil supplies and commentsing suggests opec could extend cults to the end of the year. the stocks, though, are rallies. >> boy, april is just around the corner. can the masters be far behind? less than an hour to go in the trading session, and we have mark newton from newton advisers joining me at the wall. you're going to make the case, maybe, for europe? >> increasing signs of europe outperform the u.s., not happened in ten years. here's just a chart going back over the last two and a half years. >> compares the european market to the u.s. markets, so as it goes lower, the u.s. markets
outperforming european markets? >> correct. europe has been underperforming and really all the sudden you're seeing signs that this is changing, just in the last month, things like the easy u, the bgk, popular etfs for europe up between 8-10% so far this year, and in the last month, europe is outperformed steadily, up 4.5% versus s&p being down for the month fractionally. those concerned about the trump bump turning into the trump slump, europe, to me, looks like a really interesting area to overweight and expose yourself to in times of vulnerability. >> because we're going sideways, or are they rallying that much many. >> lrargely, france, germany, spain, a real outperformer, economic data, you see the u.s. turn down from march, and europe performed much, much better. combination of both. as it's broken out from a
two-year down trend, this allows for further outperformance. i like europe as the place to be. >> all right. keep an eye on that. >> good stuff. time for a cnbc news update. sue? >> here's what's happening this hour, everyone. wells fargo received a blow to the image. a federal regulating body that scores things on their lending and poor neighborhoods downgraded wells fargo's rating saying it needs to improve. this gives regulators greater say over the day-to-day operations. a trade organization is criticizing the trump administration's ban on electronics on direct flights from several predominantly muslim countries. speaking today in montreal, the director of the aita say the measures are not an acceptable long term solution. a one-time mostment wanted terrt finally convicted.
a french court found him guilty of the 42-year-old crime and sentenced him to life. he's already serving two life sentences for other attacks. a warning, this video may give you a headache. look at this. a 16-year-old student in bosnia performed this incredible stunt over the weekend, smashing 111 cement blocks. he's a champion. they should have given him more than a plaque, however. >> smashing with the head, right? >> probably take that out, too, with his head there. wow. >> you know, is this safe? >> what do you think? >> i think -- >> i mean, this is -- >> i think it can be. >> don't try this at home. >> don't try it at home. he's a champion. >> so -- >> in his country. and -- >> sitting around one day, says, you know what i think i can do? how does this come up, anyway? >> well, basically, because in order to get his belt or considered a master, you have to
be able to perform a stunt like this. >> wow. >> obviously, he can. >> don't try this at home. >> don't. >> anyway, see you in an hour. >> thank you so much. >> sure. good stuff. >> yes? >> no? okay. 30 minutes left in the trading session, up 168 points on the dow now, and steve leisman sat down with the federal reserve vice chair, fisher, to talk about how the health care bill changes the fed's calculations. his response coming up. >> i thought about soccer, heading the ball, that's okay. hospital stocks down a bit after the gop bill failed, but uncertainty remains for the whole sector and for consumers. we'll get the pulse of both when the ceo of the cleveland clinic, ask him about smashing head into blocks. >> yeah. see if insurance covers that.
c'mon in, pop pop! happy birthday! i survived a heart attack. i'm doing all i can to keep from having another one. and i'm taking brilinta. for people who've been hospitalized for a heart attack. i take brilinta with a baby aspirin. no more than one hundred milligrams as it affects how well it works. brilinta helps keep my platelets from sticking together and forming a clot. brilinta reduced the chance of another heart attack. or dying from one. it worked better than plavix. don't stop taking brilinta without talking to your doctor since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. don't take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. tell your doctor about bleeding, new or unexpected shortness of breath, any planned surgery, and all medicines you take. talk to your doctor about brilinta. i'm doing all i can. that includes brilinta. if you can't afford your medication,
overreach, restore economic freedom, and allow our companies and workers to thrive, compete, and succeed on a level playing field for the first time in a long time, fellas. it's been a long time. >> so now what happens is the epa implements a new rule meekimeek i making process to come up with an alternative. joining us now on the first cnbc interview, scott pruitt, thank you for the time. >> good to be with you this afternoon. >> what do you -- so you don't have a plan yet, but you're going to start the process to come up with a new plan. how different will it be? what are you trying to achieve that the obama plan did not do? >> how exciting this afternoon to begin with, bill and kelly, to have coal miners at the epa, and the president's message that the war on coal is over. you know, we had an
administration up until president trump elected that had within the cross hairs of regulation coal and fossil fuel, and we, as a country, were being underserved, not taking advantage of harnessing our natural resources while protecting the environment. having a pro-growth, pro-jobs, pro-environment message. great day at the epa. the president's attendance here, the executive order that kicked the process off, and as you indicated, bill, we started the rule making process already. right now, the focus is to withdrawal the clean power plan. there's a spring court stay issued against that particular plan. so we've begun the process to withdraw that, and we'll then make sure that whatever's done in the future is done within the framework of the clean air act respecting all forms of energy. >> one question at the heart of this is about the cost and benefit of rules like this when they are implemented, so, you know, going back to the idea of cutting back on these emissions, do you take issue with that move? do you take issue with the fact they unilaterally say we want
them down 30% and whatever the cost may be? >> look, i mean, you did a very good point as rules were adopted, whether at the epa or any agency, that passes rules on to the marketplace, there needs to be a cost-benefit analysis, and historically what happened in the agency was turned upsidedown. some are small and minimal benefits and the cost extraordinary on the economy. there's been a contraction in the coal space, but in power generation and also oil and gas as well because of the great regulatory uncertainty. one of the things seen as far as market contractions generally, fiscal policy's important, tax policy's important, but regulatory uncertainty in the finance sector and health care center, particularly in the energy and environmental sector, so we here at the epa send a message of regulatory certainty, we're not picking winners and rules in adopting regulations, and ensure the economy. >> i was going to say, like, take your point, but look at how
much oil production has happened in the country, if regulation is held that back, i can't imagine what it looks like in years, oil prices would fall in half. >> well, look, opportunity's immense with natural gas, immense with oil, and opportunity's immense across the board with renewables. having an all of the above strategy, that's not where we've been in the last several years, so to your point, what's achieved in two years, that's just the beginning. we're sending a message across the country that pro-growth, pro-jobs, pro-environment achieved through regulation. >> pursuing more on coal, then. i mean, the president said in the executive order signing this ends the war on coal, but, you know, there's those who feel like the biggest head wind coal faces are just market forces themselves, natural gas is so much cheaper, technology making it more efficient to get natural gas out of the ground than for coal, and, in fact, earlier today on cnbc, representative the ranking member of the budget committee out of kentucky said
even if it does increase demand for coal, the executive order, in places like eastern kentucky, and i'm quoting him here, he says those jobs will not come back because that coal is just too expensive to mine. it's just not competitive anymore with natural gas, so are you pushing on a string to say that, you know, you're ending the war on coal when, in fact, coal already lost the war. >> look, it's important to note this. the reason for contraction of coal generation in electricity is the price of natural gas, but also the regulatory assault. the regulatory uncertainty that's been created in that space, so investors and those seeks to grow business, they've now invested in the space, and that's going to change. there's hope, optimism now for the first time in years to impact the demand. we also want utility companies making decisions on how to generate electricity based upon an entire portfolio of options. natural gas, oil, coal,
renewables, hydro, across the board, we at the epa should not advance regulation to force upon utility companies winners and losers. they should make it based upon price and also the stability of electricity. so what we've seen in the last several years is the exact opposite of that. this order addresses that. >> i don't know if you guys have jurisdiction for this, but would it be up to you to decide, for example, the levels when people buy an electric car like a tesla? >> you know, we have the cap a standard announcement a couple weeks ago with respect to up in detroit. fuel efficiency measures, we are involved in that. as far as incentives, that's not something we engage in here at the epa. >> major question has been, what is that, you know, miles per gallon threshold going to look like in the future? the obama administration had 54.5. what do you think is something more feasible, or do we not need to have a number be so
important? >> well, you know, april of 2018 is when we make that decision. announcement up in detroit, keep our word as the epa and government to the auto industry there's a midterm review that took place in april of 2018, and that's what we announced in detroit, but to your question, we ought to focus on fuel efficiency for cars americans want to buy. going to ford, chevy, domestic producers, auto producers saying, manufacture a bunch of cars that make us feel better, that provides, you know, better fuel efficiency that no one's buying the cars. that's counter productive. here's why? older cars are still in the marketplace. focus should be working with the auto industry on making more first time cars for cars people want to buy, suvs and otherwise. that would be the focus as we head into appraisal 2018. >> i'm curious, you know, the clean power plan was the response to the paris climate accords. bearing in mind the u.s. and china are the two biggest
emitters of carbon emissions in the world, polluters in the world, by doing this executive order, are you abandoning the paris climate accord, or how does that work into the context of what we'd already agreed to with the other countries? >> well, a couple things. one, the clean power plan is not necessarily connected, deaf netly not legally. the accord was not a treaty. no enforceable, so this plan is not attached to. that secondly, the clean power plan was truly a power grab from washington, d.c. to take over the power grid of the country and force upon companies and consumers across the country a generation shift from natural gas and coal generation to renewables, increasing prices substantially. this addresses latitude for those to make market base decisions, we're not picking
winners and losers, focus on clean air, but doing so in a that's fair for all in the country. >> point well taken, but the question is, are you planning to abandon the paris climate accord? >> well, again, that's actually a state department issue. i actually think the paris accord is something when you look at the deal struck there, china and india, no obligations until the year 2030. we front load our costs in the country. that's a bad business deal. a discussion internationally about greenhouse gases and c 02, understandable, needs to occur in the future, but america first strategy how to approach it. >> major announcement, of course, fulfilling a campaign promise of sorts all along, so my question is, what's next? you know, it's a couple months in now. i imagine there are many other ideas that you have and things that might now be rolled out, and does any of that become complicated if the budget does cut funding by 25% or whatever? >> you know, it's really not
related to the budget. i think what comes next is a much more humble view of what the epa's response to c 02 is in the clean air act. what's not talked about often is that we have a supreme court decision in 2007 that said c02 is an air pollutant, and we have a finding in 2009 that was made by the epa. congress has never passed any law with respect to the regulation of c 02. the agency tried twice to regulate it, and supreme court intervened both times, one, to declare the regulation unlawful and so there's a very fair question to be asked and answered. are the tools in the tool box? does the epa have the tools and tool box to address the issue on a perspective basis? that's something we have to talk about going forward. >> all right. we appreciate the time here again, thanks for joining us. >> thank you. >> thank you. >> epa administrator scott pruitt joining us today.
stanley fischer sat down with us earlier, and take aways amid the market rally, steve? >> among the central banking colleagues, fed vice chairman known as someone who wants to hike rates a bit more, maybe a bit sooner. news to the markets. it looked like it was worth, i don't know, another 50 points on the dow today. when he told cnbc in the exclusive interview he's aligned with other members who want to raise rates twice more this year and part of the reasoning is the recent failure of the republican health care bill. >> did what happens last week change the calculus on what's going to happen in washington when it comes to more significant fiscal policies like tax cuts? >> may change my internal calculus, but in terms of what we actually do, saying what would we do if a, or what do we do, if, b, it doesn't change what we look at. >> worried about protectionist
trade policies as well. he may yet end up being a fed official who wants to hike more and hike sooner, but made clear only changing the outlook when he's sure policies that change the economy are going to change as well, kelly. >> i think the market heard two more hikes, you know, took it to the bank. >> right. >> and -- >> and especially from from stan fischer. >> said four last year. >> also said in august he said, maybe next month, and, of course, it was not until december. stan is not, you know, crazy out of line with the center of the board. he's obviously one of the most, you know, influential policymakers there, but he tends to side on the hawkish side. when he says, too, i'm waiting to see, by the way, said no tax cut impact he doesn't see until 2018. that's important. >> good stuff, steve, thank you. >> thanks. steve leisman in washington. dow up 161. the consumer confidence numbers, remarks from the vice chair.
>> darden shares rallying on the back of the earnings. are we seeing a restaurant resurgence? the debate, both sides, the bull and the bear, coming up. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.
moments ago, the orders showed imbalance to the sell side by $850 million. abig number there. it is up three. >> i wonder if that's -- >> look it up. darden boosts today on strong earnings and the announcement it's buying cheddar's scratch kitchen. >> shares up more than 9%, and after the bell, get earnings from two more restaurant stocks, dave and busters and sonic, both up 2% today. joining us to see if now east the time to buy into the restaurant space, peter from btig and bob from kelsi advisory group. what do you think? restaurant resurgence? >> look, i think the sentiment on the restaurant space has been a little too negative. in our view, we don't tell investors, get back into the restaurant space. we think you got to be more
selective than that. in our view, the restaurant space, on demand economy, consumers want to purchase on their phones. they want the food delivered to the door. you got to invest behind companies that are ahead of the curve on digital and delivery. those companies, in our view, that's panera, dominos, papa joans, and up the curve is the cheesecake factory. that's what we tell investors to focus attention, not just to blanket come into the restaurant space and buy any name in our field. >> bob, you're the bear on this. are you putting in a blanket statement you wouldn't by any restaurant stock here? >> no. what i would say, bill, is that, you know, don't let the details get in the way of a good story, and right now, you know, across the space, we saw 16-year high consumer confidence. we saw a bellweather in the industry put up good numbers, and there's, clearly, short coverings driving up the consumer names, these restaurant
stocks especially, because i think, you know, to be fair, we got some head winds staring us in the face in this industry. >> like? >> i think, you know, you need to tiptoe through the mind field. >> what are the head winds, bob? >> yeah. >> well, just, for example, if you look at the relationship between consumer confidence and restaurant industry same-store sale, we've actually turned into a negative correlation between the two as consumer confidence has improved, sales have gotten worse this year. i'm not saying that's a, you know, a correlation that's going to continue into the future, but it adds a level of concern. what's going on within the next national ether, so to speak, affecting consumer spending, which has really been very, very fragile. >> and, peter, i equate restaurants a lot like the retailers, there's too many out there. you -- it's incumbent upon you to pick winners, right, left standing when others fall by the wayside? >> no, you're right. there are too many out there. you got to find the restaurants
that are actually differentiating themselves and doing something different. >> so who would you not buy right now? i don't want you to come up with a negative thought here, but who -- what kind of a restaurant do you avoid, then? >> well, look, i think, clearly, casual dining has had had its struggles for many years, and i think that's going to continue, so you got to be extremely selective within casual dining, but in terms of differentiating yourself, again, the restaurants that have invested on the digital side are seeing some great growth. look at panera, invested two years ago on the digital platfo platform, now delivery, look how the stock performed, how the costs are going, earnings numbers are head the. look at dominos, they did it eight to ten years on the digital side. look at the stock. papa john's doing more of the same, but this is what the consumer wants. these restaurants are giving it to them. >> quite a performance by dominos there.
good to see you both, thank you. >> we'll come back with the closing count doup in a moment. >> activist investor wants to unlock value by creating two share classes, but are investors on board? another shareholder coming up. you're watching cnbc first in business worldwide. or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. find out how american express cards and services he's a nascar champion who's she's a world-class swimmer who's stared down the best in her sport. but for both of them, the most challenging opponent was... pe blood clots in my lung. it was really scary. a dvt in my leg. i had to learn all i could to help protect myself.
my doctor and i choose xarelto® xarelto®... to help keep me protected. xarelto® is a latest-generation blood thinner... ...that's proven to treat and reduce the risk of dvt and pe blood clots from happening again. in clinical studies, almost 98% of patients on xarelto® did not experience another dvt or pe. here's how xarelto works. xarelto® works differently. warfarin interferes with at least six blood-clotting factors. xarelto® is selective... ...targeting just one critical factor, interacting with less of your body's natural blood-clotting function. don't stop taking xarelto® without talking to your doctor as this may increase risk of blood clots. while taking, you may bruise more easily, or take longer for bleeding to stop. it may increase your risk of bleeding if you take certain medicines. xarelto® can cause serious, and in rare cases, fatal bleeding. get help right away for unexpected bleeding, unusual bruising, or tingling. if you've had spinal anesthesia, watch for back pain or any nerve or muscle-related signs or symptoms. do not take xarelto® if you have an artificial heart valve or abnormal bleeding. tell your doctor before all planned
medical or dental procedures and before starting xarelto® about any conditions, such as kidney, liver, or bleeding problems. you've got to learn all you can... ...to help protect yourself from dvt and pe blood clots. talk to your doctor about xarelto®. there's more to know. with e*trade's powerful trading tools, right at your fingertips, you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com
about 90 seconds left in the trading session here. the old cliche, turn around tuesday. the dow's a good example of that, again, bearing in mind off the open yesterday, we were down 183.sat the low, and now we are down 170, we gain about 350 points in that time frame. we go out here with a gain of 350 points. wti crude oil, we had a rally today. we're up to $48, but, bob, we're stuck in the range between 45 and 50 a barrel right now. >> three parts to the rally, one was oil so that consumer confidence report at 10:00 a.m. is normally not a market mover, but the market lifted on that. >> got attention. >> at 11:00, the oil chart, oil rallied, second part of the rally, another move on the upside, finally stan's comments, two rate hikes, up 115 points, another lift on the markets.
three separate lifts. again, the conversation shifting towards the economic and earnings move and away from washington. >> so the losing streak for the dow stopped at eight consecutive sessions. the dow finishing up 150 points today. stay tuned now for the second hour of "the closing bell" with kelly evans. see you tomorrow, kelly. thank you, bill. welcome to the "closing bell", everybody, i'm kelly evans, a rebound on wall street. first, the numbers on the close. the dow up 150 points. that puts it just above 20,700. i'll watch things as they shake out, but look at percentage gauge gains with the dow, s&p, and russell, nearly exact for the averages. nasdaq lagging a bit, but, again, the s&p adding about 17 points, and the nasdaq closing at 5875 today, and the russell
up about 10 points. 1367 is the level there. the dow transports, up, by the way, 162. much more on this big comeback rally in a moment. republicans, after pulling the obamacare replacement bill last week, coming up, the ceo, toby cosgrove joining us for what it means for the business of health care, the stocks hit by this, and joining our panel today, cnbc commentator and procolumnist, and reuters breaks news, so, welcome everybody. mike, this morning, losing streak since 1978. what changed? >> built slowly. that consumer confidence number knocked loose a little of a log jam in the bond market. then you had treasury yields down to start the day, start to lift. i think that kind of gave clearance for everybody to get a second look, maybe bank stocks
are down and up, transports down and up, maybe all the beaten up sectors have already kind of taken the pain, even the dollar rally over the course of the day, so i think it was a matter of going after the stuff that had. pulling back the hardest, maybe that was it. it was down 3% move from the all-time highs, march 1st to yesterday's morning low, so -- >> which was the whole correction 3%? >> i don't know if there was a trier point there. i don't think if that was the low, i don't think you gathered up a lot of steam, elasticity to really shoot through to a new high, but maybe rescued it. >> mark, do you think that's all it was going to be, a 3% correction? >> you know what? i think my new framing on the market is call it love is a many slender thing rally that we're in. despite the down year, reality is the rally was about more than trump. that's what we are figuring out here. we got rising wages. we got inflation. potentially on the way up, rates
on the way up. the market conditions are set up, across the board, for continuing performance in equities. that's what it's about, more than trump. >> wait a minute. talk about the rates a moment. that's going the other way. i don't know when the ten-year piqued, but let's see, it was a 2.6% earlier this month or something like that, right? we split all the way back down, might have been earlier than that, so it doesn't seem like there's that consistent of a story coming from the higher rates trade lately. >> that is the definition of what makes a market, though, isn't it? the fact of the matter is, the feds indicated the direction they are heading. we got a couple moves ahead of us for this year, and, again, if we get the wind at our back, maybe tax reform, some of the other elements that come, saying that we now had a fail on health care, we're going to be in a good position for this equity market, and i think you are seeing it in the stabilization that we have here. >> by the way, rob, it was interesting to speaking of, you know, is the market now looking towards the next things out of the white house, and how much might be priced in, there's a
jpmorgan corporate tax index on the low end of the recent range, xli, industrials, proxy for the infrastructure, same story, not that high. so you can't necessarily even say that the highs for something here, but the market is skeptical of what's coming next. >> there's really no reason to think corporate tax reform is going to be any easier to accomplish than we have with health care. infrastructure, again, a lot of people on both sides of the aisle, and lots of people in the market who really talk about how excited they are about an infrastructure bill. you're not hearing anything really from the white house. or even from the hill. i mean, i think it's right. there are -- there's substantial reasons for the market to be there in some respects, global growth is not bad, emerging markets have not freaked out. all those things are not so bad. it's hard to see a reason to go to a next leg up, having had this correction. >> we'll come back to that in a minute, but the consumer confidence report, mike, get its due, just how strong it was this
morning. the headline reading, strongest since 2000. that is surpassing the whole previous economic cycle, percentage thing, they plan to buy a car, five-year high, second highest since 2008. jobs, the net view on jobs, highest since 2001. the current labor market conditions, viewed most positive in 16 years. >> yeah. there's been this kind of recognition point. it's not just conditions themselves improved. people see their way clear to saying, you know what, i both see the good stuff going on, and i expect more of it. as you said, kelly, we moved above this 100 level, actually, capping consumer confidence for this whole cycle. the prior cycle, it was 115. >> now 125. >> it's not a direct link to, yeah, people are going to splurge, but it shows that yet again it leaves a psychological vector heading that way. >> mark, real quickly, we heard from the fed vice chair today going the other way, reflective of the recent markets, two more
rate hikes, didn't say more than that, but back to the goldie locks scenario? >> the fact of the matter is, you know, there's a comment before about we won't get tax reform done, might not get infrastructure, you are significantly underestimating the idea that this president, like him or not is a deal maker. a guess on something that's good, satisfy that hundred-day hit list he had. look through getting elects, look at the list, not letting those things fail. if it means making a deal with democrats to get there, going with the moderates in the republican party to get there and the freedom caucus, he'll do it. make no mistakes. i think those are things that help. >> absolutely. the point is, at least you say, hey, this is not all totally priced in yet. if you look at the corporate tax, the infrastructure, so just a level of resilience, right? that even if some of the things don't pan out perfectly, you know, it doesn't mean -- >> i think absolutely true. around that, and with nine days
of down dow, certainly feels like we are holding back waiting for some positive piece of news, which, you know, deal making, that could be it. >> speaking of the president shifting focus from the failed health care bill to taking on tax reform, could that suffer the same fate as the bill that replaced obamacare or wanted to? ylan mui with more. >> hi, kelly, republicans trying to turn the page to tax e reform after last week's debacle, but the message heard from house leadership today was that health care is not dead yet. house speaker paul ryan in the reekly briefing said the party is trying to find unity. >> we're not going to retrench into our corners or put up dividing lines. today, we broke down many of the dividing lines within our conference. there's too much at stake to be bogged down in all of that. >> now what i hear from house leadership is that even as the health care reform effort continues, they can still do tax
reform on a parallel track. in fact, members of the house ways and means committee met today to discuss the next steps, but as you see this tug of war between health care and tax reform take place, the white house is moving forward on its trade agenda, secretary of commerce was here on capitol hill this morning talking to lawmakers. a source tells me the white house is preparing two executive orders on trade. the first one would deliver on the president's pledge to increase the number of products that are bought in here in america. the second one would call for a sweeping review of the nation's trade deals. there are about 14 of them. we caught up with house ways and means chairman kevin brady after that meeting with secretary roth, and he said the administration is looking to increase market access in three critical areas, agriculture, infrastructure, manufacturing, and services. agriculture, manufacturing, and services are the three. there is a lot on lawmakers' plates here in washington today.
you get the sense everyone's searching for direction after regrouping from last week. >> ylan, stay with us. mike, to you, does it mean you throw the spaghetti against the wall, something sticks, or doing too many things at once and juggling all the balls, something falls. >> not too many things at once just because, look, there's departments pursuing things on their own. it seemed to me that tax reform in a comprehensive way is too daunting. they are not set up for it right now. the shortest route, perhaps, to have something effective being done and check off things on trump's promise list would be something on trade, trying to force things, get more aggressive on either market access overseas, or trying to get domestic production going. >> ylan, from what you understand from the executive orders, you know, what do you think is going to be the pal pble effect? what we see, sometimes, they put framework in place, go ahead, look for ways to, you know, make
efficiencies happen or roll back regulations. you know, is this something with an immediate economic impact? >> that's step one. a more substantive act might be when the commerce department actually sends a notification to congress starting that 90-day countdown clock at the beginning of the renegotiation of nafta. i hear that letter has been drafted. it is not yet been sent. there's some political log jams they are trying to work through before they send the letter, but that would be something more concrete even as they conduct a broad review to determine where they want to focus their trade agenda next. >> yeah. absolutely not. >> ylan, disappointed, i hoped for the side pony again. >> we're inside, kelly, maybe next time. >> thank you so much. >> all right. >> mark, turning back to you, the question of, you know, i guess you could say the dollar's in the cross hairs of a lot of this. what do you think right now? lower dollar good? stronger dollar good?
does it not matter? >> you know what? at the end of the day, i think the market will adjust. they put in a border adjustment tax, obviously, significant impacts to the dollar. if they don't, we're in a steady, safe position, either way, i think that the balance of trade adjusts, and i think it's less of the issue for us right now than really talking about what's going to go on in the underlying economy, how much impetus and how much extra stimulus is pushed in through a variety of the tax corporate individual and infrastructure related. i think the dollar's less of a factor. >> so, understood, i was going to ask you, rob, what do you think is a fair thing to, you know, the odds are good of seeing repatriation, for example? is it sort of a big bill with everything in it or piece by piece? what seems more likely? >> last time we did expensive corporate tax reform was 30 years ago. it's very difficult. back then, you had all sorts of things you could pull, a lot of levers, whether it was
amendments, things like that, earmarks. it's much more difficult. i'm not sure i agree with mark, generally, there's any evidence right now that our deal maker president is going to be anymore successful in carving out a deal on corporate tax reform than he has been with health care. other than the fact he's also still trying to keep the health care table alive. he's talking about these trade issues. i mean, i guess i'm just pretty skeptical about that. you also have things like the bird rule as you know. >> yeah. >> you can't push out the budget deficits ten years out, so that makes it hard to say, all right, to heck with it. we can't do comprehensive corporate tax reform. just cut taxes. it's difficult to do that. look, i mean, i think it's good that the markets reflect the fact that people are confident about the economy, wages are rising, you know, we have a tight labor market. that's all good. corporate earnings look good. i just think it's -- there's probably more -- in my view, more downside risk than upside
risk we get ideas passed through congress. >> all right. >> can i propose quickly the way the market's behaved looks most like 2013 in terms of the cadence of it, refuse of the dip. a great year. the market loves gridlock in washington. i predict two months, the market could be up, and we'll start -- maybe occur to us maybe we feel like we are okay. >> goes back to the original point. this is a good backdrop. keeps the markets going no matter what. >> thank you for joining us. >> thank you. we have a news alert. >> kelly, the company announcing they are creating a new fulfillment center in virginia creating 1,000 new jobs. this follows other announcements this year. plans for fulfillments, and this is part of the broader plan to create 100,000 jobs in the u.s. over the next 18 months, and as
talked both before, they announced something new, but likely previously planned, and, certainly in line with employment growth with amazon over the last few years. fulfillment center this time creating a thousand full-time jobs in the future. kelly, back to you. >> did they say where in virginia? >> yes, they did. they will be created in clearbrook, virginia, and also amazon currently employed more than 3500 full-time employees at three other fulfillment centers in virginia. those are in chester, peterburg, and sterling. >> okay. thinking, you know, i know 81 and 64 highway maps very well. get a cross roads going there for distribution centers. there's a great town, lexington, virginia. look it up sometime. amazon shares a little higher. >> yeah.
i mean, it's obviously a price tact -- interesting, amazon stock has been really tightly coil up in the sideways range. obviously, a little bit about upside today, but interesting to see which way it breaks. >> watching it. president trump signing executive order today rolling back many much president obama's environmental regulations. can this really give new light to the coal industry? we'll debate the potential winners and losers of the move, but, first, hedge fund manager david einhorn urging owners to split stock in two classes to unlock value. up next, whether that's the right move for gm with a top shareholder. you're watching first in business worldwide. now on the next page you'll see a breakdown of costs.
find your awesome with the xfinity stream app. more to stream to every screen. welcome back, restaurant companies reporting after hours, own dave and busters. >> we had darden putting up strong numbers, is it a restaurant recovery? different story today. numbers, dave and busters, first, beat on the top line, bottom line in line with estimates, but here's the miss, comps, in-store sales less than expected, 3.2%, but kept the guidance in line. when you hit record highs in the stock, there's a lot of upside
priced in, and you really have to come out with strong numbers. let's look at sonic as well, also sold off in the after hours. earnings, top line beating, revenues missed, but the big miss here in the report card and what people zeroed in on is the system comps down 7.4% whereas analysts looked for a fall of 4.3%, but they kept guidance in line for this fiscal year. back to you. >> susan, so the sonic comps down 7%. what did you say dave and busters were? >> down, what, they were up 3.2%, but less than what analysts forecasted, 3.7%. you're testing me, kelly. >> i know. i just wanted to get it strait here before i yapped. thank you. dave and busters shares down 6%, sonic down 3%. >> as susan said, the stock was not set up for anything short of a blowout number. doubled in the last year, 15 months. sonic is a tough stock in an
area that's -- >> down 7%. all right. gm shares, meanwhile, spiking this morning on news activist investor david einhorn is pressuring for two shared classes. let's get the latest,less sli? >> that's right. it could unlock $13 billion to $38 billion in value. there's two investors, those who like dividends, others who like earnings growth. by separates them into two c categories of shares, gm could share closer to the intrinsic value. that's what he told cnbc earlier today. >> our idea is essentially to pay the same money to the same people, just do it in two different qsips so everyone has what they want. it doesn't change what's going on at the company, but when you do pretty simple valuation analysis, if you actually implemented this plan, which we
expect that they will, you're going to unlock a tremendous amount of value. >> gm rejected einhorn's proposal and said in a statement today the activist's plan involves risks like a downgrade in gm's credit rating. moody's warned today that plan could indeed lead them to lower their ratings. this is not the first time gm faced an activist investor. harry wilson who helped the obama administration bail out and rebuild the gm corporation, gm agreed to repurchase $5 billion worth of stocks by the end of last year. kel kelly? >> thank you, leslie. our leslie picker there. what do shareholders think of it? joining us on the phone is one of them, bob olstein, owned 300,000 shares with gm, bob. thank you for joining us. your initial thoughts on this
proposal? >> caller: well, kelly, david einhorn's a valiant investor as we are, big free cash flow, 11%, free yield right now. we know it can be cyclical. we think normalized earnings are $4 a share. 11%, the stocks worth 50-55, it's going to happen without any financial engineering. they have taken 7% of the company private. in the last two years, it sounds like they are going to take another 7% private. this stock is going to go north because of the free cash flow yield. we have a lot of confidence. i don't think you need financial engineering or take any risk whatsoever. in the stock is a 4.25% yield. wait, we back her, we don't need the need for financial engineering. we saw stocks taken out of the
portfol portfolio. could go private eventually at these rates or someone comes after it. we don't need the financial engineering. >> bob, you have faith that the market's going to figure it out and revalue the company, but the stock's been sideways for four years now, so i guess you could understand why david einhorn is looking for another lever to pull here to try to maybe spotlight some of the value. does that not make any sense? >> caller: that's true, mike. look, i like it tomorrow as well. we bought the stock in the high 20s a year and a half ago, and, basically, of course, i want it, but i don't want to take the risk. it's the wrong move. they made compelling points. i've. been doing this for 50 years. we'll get the value as long as we're correct they have an average free cash flow of $4 a share. i have a lot of confidence in it. there's a lot of other moves, they'll continue to buy the stock. eventually, they are going to attract a lot of value investors. this is one of the cheaper stocks on the board right now. we did this in the late '90s
when they owned eds and there's a lot of free cash flow. we are going to correct on 4%, and i know, in my opinion, it's going to happen if they hold up, and we believe they will. >> 50 years of experience, asking this about the proposal, creating a separate dividend paying class of stocks from the capital appreciation class. do you as a valued invester have problems with that proposal? any comparable examples you can think of? do you support this generally? >> caller: i don't really -- look, if there's something going wrong, i support financial engineering. where they have a bad division. they are operating to perfect n perfection. we understand, we always look at -- this is a cyclical, it could go down. why take the risk of doing this? i can't determine how the shareholders would act. the company made compelling points. mr. einhorn had compelling points.
we're in the driver's seat. we are getting our yield now, 4%, more than u.s. treasuries, and we think it's going to happen whether the company's private in the next eight years, why risk it? >> bob, i love the point about how they are buying the stock back, it's going to be private. >> it's going to be private if they continue this. >> one more second on the class of dividend paying shares, you got any problems with that? a new way to approach unlocking valuation, is that a good idea going forward? >> company by company basis. >> yeah. >> here's a company that is not as leveraged as it was in the past, but they have debt, and i believe they are in the driver's seat. i'm against -- not against it, but it's a good idea, but i'm confident it's going to happen without it because we'll be the last shareholder, and i'd love to get 630 a year in free cash flow. >> one more question as well, bob, you mentioned that buying back a lot of stock could go private, could be a takeout candidate, walk through what
might happen down that path. it's been floated by other people that it's not long before a tech company buys a car company. we saw 5% of tesla today. is that the kind of thing you're talking about in terms of -- >> caller: i believe an opportunist, and i don't know who it would be, this does have a large market capitalization of $55 billion, but an opportunist, they can, without doing a lot, they -- take it private. correct the free cash flow, 11% 12% a year. that's a good returnment i'm not going to say it's good for all companies. i prefer to sit back, smoke my cigar, and wait for the value to be reached. it's going to be reached. >> stereo type of wall street there, bob, be careful with these things. >> caller: i know. you got to stop this instantaneous gratification too. know what you own. i think mr. einhorn knows what he owns. i understand he's frustrated. i'm frustrated too. i want it going up, but i'm
still making 4.25%, a 20% move, and it's going higher. e really believe that. >> so interesting, bob, thank you so much. talking about his point of view on general motors, saying it's going higher regardless. energy stocks outperforming the broader market today as president trump signed an executive order rolling back regulations. is that enough to revive the coal industry? replacing obamacare, coming up, cleveland clinic ceo tells us when he thinks the new health care bill could be introduced and whether it lowers costs for americans. yes? please repeat the objective. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com.
welcome back. beginning with kate rogers, another earnings alert. hey, kate. >> kelly, looking at rh, formally known as restoration hardw hardway ware, a beat on tom and bottom lines, revenues of 587 million, the street looked for 66 cents on 585 million dollars. revenues, they are going to redesign their supply chain. they are going to be opening fewer galleries per year in the range of three to five, and gave q1 guidance above estimates. revenues up between 535 million and 545 million. eps up between 2 to 6 cents. remember the stock's down 60% in the past two years. back to you. >> yeah, a tough one for them. kate, thank you. shares up nearly 10% in the after hours. stocks broadly rallying today. dow breaking the losing streak
with some vengeance, up 150 points, closing at 20,701. the dow, s&p, nasdaq, russell, all the major averages in the move higher. we heard from the fed vice chair today saying about two more rate hikes is what he saw for this year, more dovish than the market expected. the nasdaq lagged today, up .6. amazon buying middle east retailer, souq.com. they bought out a real estate developer for $800 million. the ceo of souq said amazon's a great fit. wells fargo an "f" in community rating. they are geared to encourage lending to poor neighborhoods. they said the bank is, quote, committed to improvement and restoring customers' trust as
the top priority. d.c. area uber user could have a new commuting option. the ride sharing service is testing out a commute, based on the region's practice of slugging where commuters pool together to use the high oups leaps to save time and money. it's used on interstate 395. uber hopes to open a car pooling market on other highways where the practice is less popular. the company promising a commute trip, mike, cheaper than uber pool. >> you know, everything, everything old is new again. there used to be congregation points in the upper east side, everyone's going down to wall street, cabs knew, there's a sharing plan, first of the four people, you got the front seat. >> my dad hitchhiked to grad school and back. syracuse to cleveland. >> hitchhiking used to be a big deal. >> think we're going all the way -- >> i hope not. >> yeah. time for the news update with sue. >> hi, kelly. this is what's happening at this
hour. dmon straighters now taking to the streets in paris to protest the killing of a chinese man inside his home by police over the weekend. that's the live shot aftof pari. last night's protest turned violent as demonstrators set fire to cars and threw rocks. authorities say the officer fired in self-defense. authorities say a fourth victim found in the charred r r rubble of a massive building fire in oakland. firefighters rescued seven from the four alarm blaze that happened overnight. vitamin d may not cut the risk of getting cancer. years of evidence suggestsed women who took the supplement were less likely to develop the disease, a new study of 2300 women found no evidence taking the supplement had any effect. a pittsburgh construction crew digs a new residential development had to stop work when a bucket pulled from the ground had cannon balls inside.
yes, the site apparently sits on top of an old civil war arsenal. that's the news update this hour. back to you, kelly. they had to bring in a special crew to get rid of those. >> glad they can't explode on their own. >> exactly. >> see you tomorrow. >> all right. president trump promised to bring back the coal industry, taking new steps by rolling back environmental regulations, but can coal make a comeback although so many power plants have already switched over to natural gas? that's next. taxes are due in over two weeks. coming up, last minute tips so higher earners can lower bills. stay with us. ( ♪ ) it's off to work we go! woman: on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. and each job created by the energy industry supports two others in the community. altogether, the industry supports over 9 million jobs nationwide. these are jobs that natural gas is helping make happen, all while reducing america's emissions. energy lives here. all while reducing america's emissions.
the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.
zplmplg president trump signed an executive order on energy today rolling back green regulations put in place by former president obama. one of the order's goals is to boost the coal industry. we spoke with epa ad min straighter scott pruitt and what he said about coal's comeback and the country's role in the paris climate agreement. >> the reason why there's within a contraction of coal generation as far as electricity is partly the price of natural gas, but it's also been the regulatory assault. the regulatory uncertainty that's been created in the space, and investors, those who
seek to grow business, they've not invested in the space, so that's going to change. there's hope, optimism now for the first time in many years, i think that's going to impact the demand. i actually think that the paris accord is something when you look at the deal that was struck there, china, india, no obligation until the year 2030. we front loaded our costs in this country. that's a bad business deal. >> now, for more on the coal stocks, can see a comeback under the trump administration, let's bring in carl larry, principle consultant at oil outlook, opinion is bullish, and kyle ko cooper, he's bearish. carl, hard to find anyone bullish on coal. why are you? what's the new executive order mean? >> well, i think scott said the right thing there, it's about regulation now, rolling back regulations near term is going to be more positive for a lot of coal companies, talking about long term, but definitely near term. >> okay. but why -- so you're saying longer term, no, but nearly term
there's opportunities? >> you know, it's about the least path of resistance, so we want to increase efficiencies, increase profitability, using coal makes sense now, without regulation, without rules backing us off here now, we use cheap energy sources and go forward from there. >> okay. kyle, you're not so convinced. you don't think coal has a future? >> well, i do -- in terms of the jobs, i do think that one of the hurdles that's going to happen is i think coal generation is going to increase year over year from 17-16 because natural gas is now more expensive. however, from an efficiency standpoint and number of jobs returned, the problem being these coal companies more or less could be use, be decimated, and increase output, but the number of jobs coming back from the manufacturing side of coal from the production side of coal might be somewhat limited because companies get better and better and get more and more
with less and less. >> i guess, karl, i mean, is there any sense that among the power generation industry that they are going to have any greater incentive to go to clean coal, whatever it might be, when it comes to bringing on new capacity, or is it just going to be a matter of this market share game among the plants that are still open for coal? >> yeahment i thi menment -- >> there is -- >> go ahead, carl. >> sorry. >> that's okay. no problem. i do think market share, yes, but i think that, too, with these utilities still using coal are going to find it easier to use this. obviously, it's the cheaper way to go right now, and with natural gas prices higher, and if we see more demand, that's going to make prices higher and coal will be more attractive. again, no rules, no regulations here. it's just the tip of the iceberg. could see it more profitable and first time going forward. >> carl, what would -- so, you know, for the jobs, though, do you see that piece of it coming back too, ultimately? >> you know, across the board,
you know, what kind of energy we're talking about, jobs are very scarce now because as kyle said, also, too, technology, innovation's drawn that back. we may see more jobs. i'm not going -- i don't think they will be big paying jobs, but i think they are incremental, but, again, you know, it's more about increasing the efficiency, increasing productivity, and profitability, so we may see a small increase, but it's not something sustainable over years, but i don't think we're looking for years right now. >> okay. kyle, finally, to you, you know, the interesting thing is that if you go sector by sector, coal, you know, they are set for the same reason natural gas is upset, which the price is down, and remained more abundant, and in oil, that's the worry, too, so is this an odd kind of domino effect where the price of all these sort of substitutes is falling? is that, you know, who -- who wins from all this, ultimately? >> yeah, actually, i think from an overall energy perspective,
what happens is that the share revolution across the u.s. transformed the entire environment. the u.s. continues to get more oil, more natural gas, driving down the price of hydrocarbons to low levels which we've seen recently. that comets. you'll have to take a look at the, really, the whole energy landscape, more and more dependent upon the residential commercial user. that's dependent oven temperature. it's a situation forecasting long term is much more difficult. last winter didn't exist. dramatically reducing the use of natural gas, and although prices are higher, we still have relatively high levels of storage, and what is going to be more and more impactful is the impact of renewables. wind generation in texas is now a huge contributor. if it's windy and cool, then we don't need much fossil fuel. dry and calm? we're actually going to need both a lot of coal and natural gas to keep all the acs running. >> all right. so interesting.
carl and kyle, depends on how i say it if there's differentiation there. thank you, both, for joining us. appreciate it. tax day is approaching, how to lower bills with three weeks left until the deadline, and hospital stocks climbing after the gop pulls the obamacare replacement bill, but health care facilities have other winds. the ceo of the cleveland clinic joining us with what if means for the bottom line next. it je anything is possible here in upstate new york. ( ♪ ) at corning, i test smart glass that goes all over the world. but there's no place like home. there's always something different to do like skiing in the winter, jet skiing in the summer. we can do everything. new york state is filled with bright minds like samantha's. to find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. search for our page, say hello to at&t's best, unlimited data deal ever. it's a total game-changer.
so now the whole family can binge,... ...surf, shop, navigate, listen, game, stream and more. all without the hassle of worrying about overages... ...or running out of data. it's less than $40 per line per month with 4 lines. and remember, it's at&t's best, unlimited data deal ever. so get at&t, get unlimited and get everyone more for less. will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.
find out how american express cards and services with e*trade's powerful trading tools, right at your fingertips, you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com
welcome back, speaker of the house speaking about the commitment to repeal and replace the affordable care act. >> we want a system in health care where everyone has access to coverage. more choice in competition. we don't want a government-run health care system. we agree on these things. >> but when spicer was asked about it a short time ago, he expressed less a commitment. >> have we had discussions and listening to ideas? yes. are we actively planning an immediate strategy? not at this time. >> all right. so where does it leave the hospitals? joining us now, toby cosgrove, ceo of the cleveland clinic, welcome. >> thank you, kelly, nice to be here. >> we appreciate your time because we've. looking at the hospital stocks, the publicly traded names, you know, by the fate of the ahca, the fact that obamacare now remains the law of the land, what does that mean to you?
>> well, the law of the land continues. we have not really changed in our two objectives, to continue to improve quality of care that we provide, and to provide great access, and also to reduce the costs. if you look at the data, 50% of the hospitals in the united states last year lost money on operations. so we have to continue to figure out how to provide care more efficiently. >> right. i'm looking here at reports about your own finances, a big drop last year, higher labor costs, fewer in-patient admissions in surgeries, lower drug costs, higher deductible plans. >> yes. >> would the republican approach help to solve some of these things? >> well, i think the republican approach, clearly, would leave some 14 million more people uncovered, and going up to 24 million, that means we have a lot more charity care, i think, poses a significant risk for the finances of the hospitals across the country. >> i guess if you were looking
at the entire range of issues inkapslated in the debate, what are areas you look to prioritize first? obviously, we don't know if there's going to be a revisitation of the bill or pieces of the aca, but where do you think the work has to be done initially? >> well, i think we have a nice opportunity right now because we really have not looked at the root cause of what the problem in health care is. the root cause of the problem in health care is the fact it's getting more and more expensive to cover people, and so you can now go back and look at a law that will allow us to begin to bring efficiencies to health care. that's going to mean putting financial incentives for people to take care of themselves. that's also going to mean to allow hospitals to become more efficient and come together as systems, and be more efficient that way. and there are a number of things that you could do to really decrease the regulations and improve the medicine. a whole slew of things you can do to begin to reduce the cost
of providing health care to a number of people. that's the root cause of what we're dealing with, not how we disproportion to who gets covered and who doesn't. >> the administration is interested in deregulation, so you were talking about having doctors and surgeons, whomever, connect and speak with patients, you know, anywhere, and keep of deal -- what are examples of innovation you think are necessary? >> well, first of all, telemedicine is tremendous innovation, we can see people really where they are. we're going to be able to follow people at home. we're going to avoid bringing them to the hospital, that reduces costs and happily keeps people out of the hospital by keeping them well. those are tremendous innovations, and then we need interoperateability so electronic records to speak to each other, and then improve efficiencies that way, and there's a number of different ways that we can improve the efficiencies by bringing
hospitals together in systems, so not all hospitals have to be all things to all people. if you work as a system, then you have community hospitals who look at community things, and the hospitals that are doing very high-tech referred. that's transferring patients and moving them to the right location at the right time for the right care. >> just going back to this idea the cost of insurance and these deductibles overall were to come back down, would that more than offset the fact that you could lose, people might lose coverage. in other words, if the gop did something to bring costs down for everybody, bring deductibles down, because there is more competition, even if they are insured while this transition is taking place, could that be a benefit to hospitals? >> i think that's not clear at this point. i think anywhere you look at it, hospitals are going to be under pressure to reduce the cost of care. and it's a problem not just in the united states, it's a problem with every country in the world. every country is faced with two things, an aging population an
more things we can do for people to improve their health, which is driving up the cost of health care in every country around the world. so we are all faced with the same issues, we have to figure out how we can bend that curve, reduce the costs. we have actually done that with our 85,000 dependents at the cleveland clinic. ourp inflationary used to be going up at 7.5%. last year it went down 2.5% simply by wellness and managing the diseases of the patients we are looking after. >> a final question then have you shared this with the trump administration? >> we are talking to the administration, we are talking lots of people. there seems to be interests on both sides of the aisle, they would be interested in looking a after be ill to make the delivery of health care more efficient than drive down the costs of care. >> thank you for joining us this afternoon. >> my pleasure. >> trying to figure out this health care thing, very difficult. tax day is just three weeks
away, up next, last-minute ways for top earners to reduce their bills dan niles will give his two under the radar text plays. you can find those names coming up. i love how usaa gives me the peace of mind and the security just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected.
>> welcome back a. lot of high earners usually owe money at tax time, tips on how to lower that tax bill. >> hey, we'll start with the mortgage interest deduction. it's incredibly possible because this eduction isn't limited to one property. you can use it for a second home as well, as long as you are the primary borrower, any interest on a home morning or equity loan will qualify. you can claim 100,000 for a line
of credit. can you get a particular cash and consider dropping it no a donor advised fund. they allow you to donate to charity and earn tax breaks in the process. you generally won't take capital gains and you get a tax deduction for the fair value right away. you can give stocks directly to charity. in this place, you avoid capital gains. you also get to take a deduction for the full market value up to 30% of your adjusted growth income. keep in mind, you need to itemize your taxes as opposed to taking the strarpd deduction. back over to you. >> i wonder why people try to take it back. >> i'm sewer people have taken absolutely everything. they don't get away with it. >> thank you very much. britain takes the first step in the process of leaving the eu. we will have those details and timing right after this.
yeah, i just saved a whole lot of money by swhuh.ing to geico. we should take a closer look at geico... you know, geico insures way more than cars. boats, motorcycles... even rvs! geico insures rvs? what's an rv? uh, the thing we've been stuck on for five years! wait, i'm not a real moose?? we've been over this, jeff... we're stickers! i'm not a real moose? give him some space. deep breaths, jeff. what's a sticker?!? take a closer look at geico. great savings. and a whole lot more.
people in the eu voted to leave. >> it's kind of fascinating. teresa may the prime minister is going to sign the official letter the correspondent is going to notify the eu of this. >> that's like tonight? >> i believe this evening, so perhaps it's already happening. it has to actually physically go to brussels and be presented there. >> on a horse? >> they will not say the mode of transportation, it has to be her wet signature, in other words, from her pen. >> wow. >> from there, of course, it becomes this bigger process all eu peb versus to discuss the process. it could be also the almost full two years that is allotted for. >> exactly, there are discussions about who is giving money to whom? who needs to receive it? today scotland said we can hold a referendum open our ontario independence in the next two years. >> exactly. there have you t you have the uk. >> you can watch ireland, they don't want the international
border, it's brigg up 20 years ago the good friday agreement. >> exactly. it's surfacing. all these things we thought were settled. we have a new phase of post-history. >> far from it. it will be interesting to watch how we all play out. thank you so much. michael santelli. >> that does it for "closing bell" "fast money" starts right now. >> wall street is on fire, the dow smacked an eight-day losing streak. the dow has rallied almost 300 points on yesterday's loans, the house speaker ryan said this about the trump agenda. >> we want to get it right. we will keep talking to each other until we get it right. we will go figure out how we get this done. >> and with that the trump trade back in full force, financials up 1.5%, discrims not too far behind. the market will help by a friendly fed and