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tv   Power Lunch  CNBC  May 16, 2017 1:00pm-3:01pm EDT

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>> let's put a lid -- a bow on it how we started about the seller strike, pete. >> i think it's all based on fundamentals and fundamentals solid. when you look at what's propelling the market and moving it to the upside even if we're flat, it's the fundamentals story of earnings. >> all right. good stuff. thank you. thanks for watching. "power" starts now. scott, thank you very much. welcome, everybody, to "power lunch." i'm tyler mathisen. here is what is on the daily menu. president trump and turkish president erdogan about to issue their live statement and we will carry it live. h.r. mcmaster comes out swinging to defend president trump following those reports yesterday that the president may have shared classified information with russia that could undermine u.s. security and compromise intelligence sources. we are all over that developing story. and, oh, snap, the stock mounting a big comeback after last week's big tumble.
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a number of hedge fund titans betting on it. should you? "power lunch" starts right now. welcome to "power lunch." stocks are holding steady. the nasdaq and s&p 500 setting new record highs. the dow swinging between gains and losses right now but in the green at this moment. tech and consumer staples holding up. check out some of the movers now. we have chinese telco -- actually it's sina, a web company, trading at levels not seen in more than five years. staples and dick's sporting goods down big after their results. home depot a real bright spot in retail on the back of better than expected earnings. twitter spiking higher on news out just minutes ago that co-founder biz stone is returning to the company in an unspecified role. brian? >> mel, thank you very much. we begin all of this at the white house. president trump and turkish president erdogan about to
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deliver a joint statement. eamon javers is there as well. eamon? >> reporter: yeah, brian, there's a lot to watch for here in this joint statement. so many points of tension between the united states and turkey. we saw the motorcade roll in, the president meeting with this president of turkey after a week in which his meeting with the russian leaders caused so much controversy in washington. they're still dealing with the fallout. now another meeting with another foreign leader. how will this one go particularly on issues of funding by the united states for the kurds, letting the kurds buy u.s. weapons systems and have access to ammunition and other fighting equipment. that's something that the country of turkey doesn't like. they view the kurds as a possible threat on their border or inside the borders of turkey. there's also the question here of the role of russia in turkey and whether the turks are going to tilt more towards russia in terms of global alliances or the united states. of course turkey a member of nato. so a lot to talk about here particularly in the fight against isis as we watch and
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wait for the president. there you see the greeting as we watch and wait for the two presidents to go to the roosevelt room to give us this joint statement, brian. >> all right, eamon, we'll see you in just a minute. now back to the markets and your money. with all the focus on president trump and the d.c. drama, do not lose sight of the fact what may be the most important thing for stocks and your money right now and that is the lack of market action, aka, volatility. you know volatility has been very low. but did you know that we are on pace for perhaps the tightest market since 1960. let's bring in the chief market technician who does great work. he highlighted this incredible trend for us. jonathan, when i read your note, i literally did a double take. we know the market is slow and weak and there's no volatility. put it into some kind of historical context for us. >> thanks, brian. most people look at volatility, use some measure such as the vix. we can look at the drawdown from
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a 52-week high and that's really what gravitates investors' attention when they're managing money. so year to date the draw down from the 52-week high is 2.8%. now we're only five months into the year. it's not really comparing apples to apples but should that perfe persist through year end that would be the narrowest drawdown since at least 1960. if you go back the median drawdown at the some point from a 52-week high is around 14% and the average is 16%. so that puts it in perspective how not only how narrow of a range we've been in but how little pullback. >> do you mean a decline in the s&p from the peak? what are you talking about? >> you're looking at from the most recent 52-week high to the most recent -- to the current low. >> the most recent 52-week high yesterday for the s&p? >> right.
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so you're looking at the drawdown from that. that would reset the new 52-week high. we were talking about this at the end of last week so the high was in march. >> so, jonathan, what does it mean, though? i'm guessing -- i'm going to take a wild stab and say our viewers like to make money rather than lose money. is lack of a pullback of any size unhealthy? is it wrong to feel nervous, in other words? >> the other thing we've noticed is the interday trading range or the average range on a 20-day basis is less than half of 1%. that's the lowest since 1993. and a lot of people view that and say volatility has to expand. therefore, it must be bearish. what you tend to find prior to significant market tops is that those interday trading ranges will expand first as the market is still going up. so very narrow trading ranges and little drawdown is not characteristic of a major top. it's characteristic of strong, healthy uptrends.
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as you got into the late '90s and the end of the bull market, the range started to expand. the same thing in 2004, 2005, and then they didn't start to expand until 2007. >> so, jonathan, you're saying that right now -- because most people when they think about low volatility they'll say when was the last time the vix was this low and they referenced two points in time you mentioned, '93 to '94 followed by a 10% drawdown and then 2007 just before the crisis, and we all know how that turned out. you're saying the difference here we would see much greater trading ranges just ahead of an actual real drawdown? >> yeah, i think so. clearly with the max drawdown we've seen this year less than 3% i think it would be perfectly reasonable to expect even a 5% and 6% pullback that would retest the 200-day moving day average. we haven't seen that all year. if you're talking about something real significant, something that would warrant changing your portfolio or
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making any major market moves, i think you would start to anticipate bigger trading ranges, and there's a narrow trading range, as much as people want to look at that and say, well, the market must be near the top, history tells us that's just not usually the case. >> jonathan krinsky, really interesting stuff. thank you. >> thank you. all right. so we're told we're within a two-minute window of when the president as well as turk's erdogan will speak. straight to the white house to listen in. >> a lot of press. i'm shocked. it's a great pleasure to welcome president erdogan for his first visit to the white house in years. the american and turkish peoples have been friends and allies for many, many decades. turkey was a pillar in the cold war against communism. it was a bastion against soviet
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expansion, and turkish courage in war is legendary. that is so true. turkish soldiers fought bravely along with american soldiers in the korean war. we haven't forgotten what they did. when we look at their bravery in the fight of korea and in korea it was just something that our soldiers and our great generals still remember. supreme commander general douglas macarthur singled out and praised the exemplary valor of the turkish soldier. said some of the great soldiers of the world. today we face a new enemy in the fight against terrorism and, again, we seek to face this threat together. the turkish people have faced horrible terrorist attacks in
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recent years and even recently. we offer our compassion to the victims, and we offer our support to the turkish nation. we support turkey in the first fight against terror and terror groups like isis and the pkk and ensure they have no safe quarter to terror groups. we also appreciate turkey's leadership in seeking an end to the horrific killing in syria, the syrian civil war shocks the conscience of the whole world. and all you have to do is look on the front page of the papers today and you'll see exactly with a we're talking about. we support any effort that could be used to reduce the violence in syria and create the conditions for a peaceful resolution. president erdogan and i are discussing the need to reinvigorate our trade and
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commercial ties. these are areas we can build our relationship that will benefit both of our countries. military equipment was ordered by turkey and the president, and we've made sure that it gets there quickly. i look forward to working together with president erdogan on achieving peace and security in the middle east, on confronting the shared threats, and on working toward a future of dignity and safety for all of our people. mr. president, thank you for visiting our country and joining us today at the white house. it is a great honor to have you with us. thank you. >> thank you. [ speak iing in foreign languag] >> translator: mr. president, my dear friend, distinguished
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members of the press, at the outset i would like to wholeheartedly salute you all. >> translator: and i would like to take in august opportunity to thank president trump and his team for the generous hospitality they have shown us upon arrival not only to my personal self but to the entire members of my delegation, on behalf of the entire turkish nation, thank you, mr. presid t president. and once again in your presence i would like to congratulate president trump for the legendary triumph he has garnered in the aftermath of the elections. quite recently we've had bilateral discussions with president trump.
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>> translator: and we've had the opportunity to focus on the outstanding relations between turkey and the united states that date back a long time, which are very well rooted and are quite happily reached a level of strategic partnership. the relations have been on democratic values and common interests. keeping our outstanding relations stronger than ever will be important not only for our common interests but also stability of the globe and peace around the world.
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the close cooperation that both countries shall demonstrate in the region currently in turmoil will be very important for the rest of the world. and primarily we are alongside by each other as turkey and the united states under the roof of the united nations, nato, and the g-20. we have been enjoying a close cooperation in all of these platforms, in all of these around the world, and in the future to come we are going to focus on making sure we'll expend our close cooperation. we are determined to expend our
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relations and i believe my current official visit to the united states will mark a historical turn of tide. whether it be throughout our bilateral discussions, whether it be the discussions that we shall have between the delegations, i think we are going to enjoy further gains in terms of the future of our relations. we seem to agree on expending further -- expending our relations in the field of economy, trade, reciprocal investments, energy, and defense industry. it is going to be very important for us to forge a close
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solidarity and cooperation in the field of fighting terrorism primarily and all the other terrorist organizations in the region. and we are committed to fighting all forms of terrorism without indiscrimination that impose a clear and a present threat upon our future. there's no place for the terrorist organizations in the future of our region. taki taking them into concentration the region will never be accepted and it is going to be against a global agreement that we have reached.
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and we should never allow those groups to manipulate the religious struck it tour and the ethic structure making terrorism as a pretext or an excuse. those who are willing to turn the chaos in syria, iraq, yemen and libya are bound to lose eventually. they will never be able to turn that chaos in that part of the world into an opportunity, and the terrorist organizations with blood on their hands are bound to fail.
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and as i have previously done so i have been very frankly communicating our expectations with regard to the federalized terrorist organization which we have notified our friends of their involvement in the failed coup of july 15th in turkey. and we have taken into account the joint steps for syria and iraq. of course president trump's recent election victory has led to the awakening of a new set of aspirations and expectations and hopes in our region. and we know that by the help of the new u.s. administration these hopes will not be lost in vain.
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and we find that it was the most necessary answer to be given to the syrian regime especially in the aftermath of the recent chemical attacks that took pl e place. and we know that in terms of keeping up with the principle and committed fight against the terrorist organizations all around the world we will not rethe mistakes of the past and we will continue down this path together. in the restoration and the establishment of stability and security in question the alliance and the partnership and cooperation between the united states and turkey is of vital importance.
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i hope and pray both of us will be committed to expending further our cooperation in the future along with consulting each other more frequently. we are laying the foundation of a new era between the two countries in terms of our relations. i hope and pray that this new administration will bring forth auspicious results from the new nations. and i would like to thank president trump for his very kind and cordial invitation and i look forward to hosting him in turkey along with his entire family. >> thank you all very much.
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i appreciate it. we're going to go to meetings now. >> mr. president, did you share classified intelligence with the russians? >> we had a very, very successful meeting with the foreign minister of russia. our fight is against isis. as general mcmaster said, i thought he said, and i know he feels we had a great meeting with the foreign minister so we're going to have a lot of great success over the next coming years. we want to get as many to help fight terrorism as possible and that's one of the beautiful things that's happening with turkey. the relationship that we have together will be unbeatable. thank you all very much. i appreciate it. we're going to go to meetings. >> the president taking and answering briefly one quick question about his meeting with russia's foreign mince it ter lavrov and saying mr. mcmaster characterized the meeting
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accurately as one focused on the fight against terrorism. that was a formal statement by turkish pred erdogan who was granted very substantial powers in that country in the wake of a coup roughly ten weeks ago that nearly toppled him. eamon javers is at the white house covering it all. >> reporter: tyler, that's right. a bit of a surprise there that the president took that question. he said he had a great meeting with the foreign minister of russia and quoted h.r. mcmaster, his national security adviser, who spoke to reporters here at the white house and said that anything that the president revealed to the russians was wholly appropriate to reveal. interesting bi-play between the two leaders. on the one hand you had the president of the united states with a very short statement. offering something in his comments you might think he would appreciate, a negative
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mention of the pkk. that's something that might be appreciated by his turkish audience and the president of turkey with a much more lengthy statement, although there were pauses for translation, and he offered something, complimented his legendary triumph in the election in the fall, a topic the president likes to return to with visitors who come to talk here it at the white house. each leader trying to offer something to the other in order to set off this series of meetings today with a bit of good feeling between the two men. we'll see what happens throughout the rest of the day, tyler. >> obviously, eamon, a lot of differences between mr. erdogan and president trump but one thing they do have in common is a very testy relationship with the press. >> reporter: interesting to see erdogan opened his comments with a gracious nod to the press in the room. erdogan got to see the american press in full action shouting
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questions at the president of the united states on a day in which the president of the united states might rather not take them. in fact, he did take a question. >> eamon, thank you very much. >> reporter: you bet. let's get back to the markets. is the market due for a big pullback? he doesn't think there's a big short in the market. here is what i was told on "fast money" yesterday. >> there aren't any, in my view, systemic issues. citi group is levered 10-1. that's like the distance from mercury to pluto. you could have a problem in subprime auto. it's not going to be a systemic problem. there's not enough leverage in the system. >> benjamin siegel, portfolio manager, and brian levitz, senior investment strategist at oppenheim oppenheimer. is mr. eisman right in the sense because of the elimination in large part of massive amounts of leverage in the system we aren't
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set up for any sort of a shock along the lines of what we saw in the financial crisis, that's just off the table from now on. >> yeah, i think that's right. people are so prepared to believe that what happened most recently will happen in the future. just because that happened in 2008, that was a once in nine decade experience. there's not that leverage in the system. people worry about market corrections. market corrections happen all the time. we had a 16% market correction from the end -- the middle of 2015 into 2016. so you might see some volatility pick up in markets, but to think we're going to have a systemic collapse and a financial crisis like in 2008 is the height of hyperbole in my opinion. >> benjamin, in terms of valuations, you are actual ly still saying that things look better overseas in terms of allocations. >> yeah, hi. i actually agree with that. i don't think there's a real concern around leverage. i'm not sure we're looking at a financial crisis, a repeat of what we had last time. the key is valuations and profit
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growth and if you see a continuation of profit margins squeezed here in the u.s. i think they're vulnerable. if you contrast that to the european banking system and an economic recovery there, i think the operating leverage drives earnings growth in markets outside the u.s. and valuations are starting at a lower point. i think that's a significant opportunity for u.s.-based investors particularly if the dollar continues to roll over. >> brian, let's get back to the states. i hear your points with melissa but do you worry everyone seems to be piling into the same ten stocks that there's no volatility and all the buying action is among the same names. what happens if they roll over? >> i do worry about that a little bit. we're a 2% economy and there's not much by way of inflation. what ends up happening in that environment is a lot of money is going into the market cap because passive strategies have done well in a benign economic
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cycle for a number of years now. that's not always going to be the case. and what happens when you look at the top ten names in the s&p 500, they're trading at a weighted average price of about 3 1/2 times compared to a market at around two times or the other 490 stocks. that's problematic. there were a couple of big surprises that we said at oppenheimer funds that we thought would surprise investors given how they're positioned. number one, you will do better in international markets and that's playing out in europe and the emerging markets and, number two, you're likely to do better investing in active strategies in the united states and other weighted methodologies. >> what's the best market overseas right now? quickly, please. >> i still like europe. i still like the economic recovery. you have a resurgent france with the new president. germany is firing on all cylinders. europe is looking strong right now. >> benjamin and brian, thank you
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both very much. we appreciate it. thank you. on deck, more on what perhaps is the most important corporate story of the day. ford saying it will slash a whopping 10% of its global workforce. the question is this, is this it a ford problem or an industry problem? that story straight ahead. where's jack? he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.
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phil lebeau live in chicago with more. >> reporter: according to sources we've talked with that this plan will be announced in the relatively near future whether it's later this week or perhaps early next week. here is what we're looking at in terms of ford and restructuring and cutting these jobs. 10% of the global workforce focused mainly on salaried workers. remember, there's more hourly than salaried at ford so the exact number remains to be seen. the impact greatest in north america and in asia. when you look at why mark fields, the ceo of ford, is considering these job cuts, remember, he has already pledged to cut costs at the company by $3 billion. so this would fall in line with those cost cuts. the company officially is not making any comment. reducing costs and becoming as lean and efficient as possible remains part of that work. that work meaning turning around the company, investing in the future, et cetera. we have not announced any new people efficiency actions nor do we comment on speculation.
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year to date sales down 5.1% here in the united states and, again, they are not planning to cut any hourly assembly line jobs. demand remains relatively strong. this is not a case of what we've seen in the past when ford has cut jobs where they've said let's close these plants. we have too much capacity. their capacity is in good shape. this is a matter of trying to bring down overall costs and that's behind the move that ford will be making when they final ly announce these job cuts. >> phil, i wonder and i don't know if the source you talked to would know this or not, if ford is concerned about activist involvement and we know that david einhorn has been in gm advocating and here we have ford and the stock performance is worse and they have a fat dividend as well. >> reporter: there's certainly unhappy shareholders but it will be really tough and it always has been for any activist to do much with ford.
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the ford family, they control the majority of the voting stock. so you always hear people say this, the activists ought to get involved at ford. do you think you're going to change the mind of the ford family? you have another thing coming if you do. >> what had been reported in the past by various outlets that the dhs considering a laptop ban on flights coming from other countries. expanding the ban. >> reporter: this has been telegraphed not only to reporters in washington or those who cover the airline industry but the airlines themselves. one airline put up sign saying, oh, look, you're going to have to not have a laptop or it will have to be checked on a flight over to europe. we've seen this telegraphed for some time and i suspect we will likely hear some kind of an announcement within the next week or two. >> and you have to wond earp if
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the lithium batteries are any safer. >> reporter: that opens a whole lot of questions. >> phil, thank you. phil lebeau in chicago. still ahead america's infrastructure crisis. that's what the national association calls it. what they think needs to happen to fix the problem next. ♪ with this level of intelligence... it's a supercomputer. with this grade of protection... it's a fortress. and with this standard of luxury... it's an oasis. the 2017 e-class. it's everything you need it to be... and more. lease the e300 for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.
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hello, everybody, i'm sue herera. your cnbc news update this hour. members of russia's parliament dismissing reports that president trump shared classified information with s n russian officials last week. one saying the accusations were a line of attack on trump. >> i think srussia is in u.s. affairs, that trump is a traitor, which was one of the lines of the election campaign, which is the line of attack on trump now. >> north korea rejecting a condemnation letter from the united nations over its recent missile test saying its missile program is for self-defense. the u.n. security council demanded the north halt its nuclear program. golfer rory mcilroy may have to miss some play after
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experiencing pain in his back and ribs during the players championship this past weekend. he says he's going to rest and determine next week if he will compete in the bmw championship which begins may 25th. we wish him the very best. that's the news update this hour. ty, back to you. >> sue, thank you very much. retail ceos meeting with mnuchin today reinforcing their opposition to the bad or border adjustment tax. ylan mui joins us with more. >> reporter: tyler, this was retailers' first opportunity to make their pitch directly to the treasury secretary. when retailers were at the white house back in february, mnuchin had not yet been confirmed. a source familiar with the discussion told me their conversation was, quote, very constructive, and he said the secretary reinforced the principles for tax reform laid out by the white house and that do not include the border adjustment tax. mnuchin said this proposal does not work in its current form but
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retailers are not taking any chances here. about half a dozen of the executives who met with mnuchin this morning are heading to including autozone, dollar general, and pet smart starting in about half an hour with representative patrick mchenry, chief deputy whip in the house and will meet with three members of the ways and means also in the house. now supporters of border adjustments say retailers are updating a broken tax code. the american made coalition which includes big manufacturers like boeing and dow chemical, they point to a poll that shows 62% of americans actually support border adjustment. now this debate has been heating up again because congress will be holding its first hearing on tax reform this week. i'm heading over to the hill after this and will keep you posted on what we learn. >> ylan, thank you very much, reporting from washington. meantime the national association of manufacturers aimed at rebuilding america's
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infrastructure in order to head off what it sees as an imminent infrastructure crisis if we're not already in one. joining me now is the chairman and ceo of ingersoll rand, national association of manufacturers executive committee. michael, welcome. good to have you with us. >> thanks, tyler. great to be here. >> i was a little perplexed there by our description of an imminent infrastructure crisis. i would think you would say we're in one already. >> i think so, tyler. great nations always invest in great infrastructure. i can't imagine loif today without the eisenhower system in the 20th century. for the past 20 years we've under invested, gdp has been below our trade partners and competitors and so the gap has widened. we're no longer a top ten infrastructure nation, and we need to fix that. it's not too late but we need to get on top of it. >> a lot of people say the top 20 would be a stretch even at
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that. which is more important to you and your company, a big infrastructure program or a big corporate tax cut that might involve allowing -- go to a territorial system for profits? which is more important? >> i think tax reform and infrastructure coupled with regulatory reform form a system of things that make corporations more xcompetitive. i certainly would not be opposed to repatriation and some of the profits going towards infrastructure but there's many ways to pay for infrastructure going forward. it's such an important productivity measure that we have to have great infrastructure whether it's ports, roads, bridges, airports. it's critical to it our competitiveness as a country and as a company. >> i will be doing some infrastructure related work including a panel. there's a number of different bills and ideas being floated out there. what do you think? i'm sure you're dialed in it. from what you hear what will be the most likely outcome for infrastructure this year?
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will it be a standalone bill, and will it be a trillion dollars? >> yeah, i think the possibilities of both are fairly good. we have a president and an administration that wants to make america more competitive. i think infrastructure is a major play. i think it pulls the nation together. there's very few people that would argue against strong infrastructure and american competitiveness. i'm optimistic something can get done this year. >> one more and a final question. you moved your corporate headquarters first to bermuda or one of the caribbean islands and now you're domiciled in ireland. i presume this was in part because you're a big international company but also in part because the tax regimes in those countries are more favorable to your businesses than the ones in the united states. if the united states reforms its tax code in a way that sits well with you, would you reconsider domiciling in the u.s.? >> we moved 16 years ago out of the u.s.
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it's been a long time now. we all work for our shareholders. we would be obliged, as always, to look at what's in the best interest going forward. i think that tax reform here in the u.s. is something that needs to be done. when that takes place certainly we'll take a look at whether or not that makes sense for us as well. >> would you rather be a u.s.-based company? >> i'd rather be a profitable global company that can invest in its people, its products, and have an open mind toward where that should be. certainly 98% of what we manufacture today and sell in the u.s. is manufactured here so we've never left the u.s., and a territorial system in the u.s. makes sense for global competitiveness. >> michael, thanks very much. ingersoll rand. appreciate it. >> let's get to phil lebeau with fiat chrysler whose shares are ticking lower. phil? >> reporter: they are tick iing lower, melissa, on reports coming out of europe that the eu
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commission is investigating fiat relative to emissions over there. we don't have any other details beyond those headlines. we should point out there have been a number of emissions scandals as everyone is well aware of and investigations over the last 12 to 16 months. what is interesting, guys, is to see if this has any legs to it. we've seen these reports come out before. stocks tick lower and then over time people say, okay, perhaps we're overreacting but at least initially they are moving lower. >> all right, phil, thank you. phil lebeau. the wall street calls you need to hear about today, your daily dose of street talk next. first to rick santelli at the cme for today's bond report. rick? >> reporter: we're matched up at the hip. and if you're looking for a breakout to the upside, look at the bund. 50 base points. right around the lows today.
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foreign exchange charts, the one year, certainly looks like 1.12 in the cards. let's look at 13-month chart of the euro versus the yen. the last time the euro was this highly valued against the yen. euro/pound. this chart doesn't quite look the same. if you look at the pound versus the dollar, it looks good. it's the dollar that's weak and the other currencies stable. "power lunch" will return. my business was built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line.
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flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. take a look at the retail etf, the xrt down half a percent and on mace for negative day for the first time since way back on april 5th. dick's sporting goods the biggest drag.
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i almost said dog, down more than 13%. one bright spot in retail today, though, is home depot up more than 1%. courtney reagan ragan is here with more. >> if you're depressed about the state of retail home depot might cheer you up. not only did it beat profit expectations but sales increased 6%. yes, it reached guidance shy of forecasts but analysts think it reaches the forecasting history and said that may sales so far have been, quote, very good. i spoke to home depot cfo carol tome and she said they are picking up near a competitor that's closing stores. she wouldn't say but i think it's likely hh gregg. she thinks shoppers want to buy from a retailer like home depot that's going to be around for the long run if they need
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support down the road. orders are picked up in store. it's a project retailer. not an item seller, dick's sp t sporting goods did put up mixed results but expects earnings higher than the street in the current quarter. comparable sales did grow albeit smaller than expected. positive comps but it's forecast is disappointing. all three posted positive same store sales. >> that's a good sign. courtney, thank you. melissa? >> thanks, guys. talking retail ourselves. analyst recommendations on the stocks you need to know about. morgan stanley down grading to an underweight. competition is ramping and pushing for funding concessions as they compete with the likes
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of amazon, i.e. price concessions. too reliant on walmart with about 24% of sales through walmart and walmart is facing a lot of competition from amazon. >> the second stop is yum brands. they like the continued transformation of the company as it continues to own fewer restaurants itself. the analyst notes they plan to raise franchise stores to 98% off the current 93%. currently all the stores. yum will lower capital spending, cut other costs. argus has a price target of $80 which is 15% upside. >> push the franchise into being the trend. the third stock, alibaba is bullish ahead of earnings release on thursday before the bell, raising price target to $155. mkm expects solid growth and
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continued monetization gains. there's considerable value according to this analyst when you look at alibaba. >> that stock has been rocking the last six months. your final stock of the day, your smaller cap name is ek, dkn zacks dell gates dell electric up to buyer. atraffic evaluation. they boast the 6-month target. there you go. you do three or do you three? allky think about is the movie. you ever see the bastard's movie by questioning tonter teen know and he goes three glasses? >> i didn't see. snap down today but they have been on a tear, maybe these
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a tier, no that's a tear in the past few days. some big hedge funds betting big on the stock should you? that's next.
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it has been a bumpy ride for snap it took a hit last week after its first earnings report miss big and it's down again today. but some heavy weights still like the stock. candice breathe some like into the stock. let's bring in brian white. brian great to have you with us. >> hi melissa. >> should we treat this as the time where these hedge funds could have gotten that initial allocation at 17 bucks a share? >> i think it shows there's a lot of support for snap on wall street. the stock overreacted significantly last week after earnings and it was the naug recall quarter. inaugural quarters are very very difficult. i think it is a good sign and investors that bought on the ipo
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were missed on the ipo in supporting the stock begun on friday and monday. >> right. but we're not near the levels where the stock was going into the quarter correct, and as for the 13-f files we know they could have owned the share at any one point since the ipo but they could now be out of the shares for the decline that we saw? >> yes, that's always true. i was very encouraged we one out very hard on friday. we went out hard on friday with a call on this, and i think it really resonated well with wall street. i think people that believe in this long-term story, and evan speaking l's long-term spiz whi business which i do, and this business he feels very good about, the levels it got to thursday and friday i think it was a great great buying opportunity. we're not here to play this for just a quarter, it's a company with a much bigger opportunity
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than that. i think people need to look out here if you want to own snap and i think it's a great buy. >> the talk on the street, we love the controversy brian because -- there's competition how do you respond to the people who are critical or are moving the other way on their price target? >> well, it just depends if you believe in what this company is doing. if you believe in the ar trend, fushl it just isn't one winner takes all, i mean facebook is going to be a good competitor but i think snap is very very different, that yauthentic and original. i think it register well with minutals, yost of the users of millennials. all over the world hence has 166 million dius and not just 2
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billion. i think they can monetize that this margaret is enormous. to me that's very very exciting for snap. >> brian great to see you. brian white, drexel. >> coming up why home builders are changing their strategy and why analysts don't think that's a good thing. that story in the second hour of power coming up.
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we begin this hour and w new breaking news, white house circumstance sean spicer about to speak the reporters and we have learned about the source of classified information that president trump shared with russians last week in the oval office. eamon javers at the white house. >> that's right, nbc news has confirmed that israel was the source of that classified information shared by trump here at the warehouse last week. israel is a country that has reportedly has protested to the united states in the past that it was too loose with intelligent information. there was questions about how --
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going forward to cap to share information with the united states if it is to leak out particularly, to leak out to the russians. so we'll watch for sean spicer, the white house press secretary is going to be gag lg with the press here at the top of the hour, that means it will not be on camera but we're expecting he will have a statement about israel possibly about source of that intelligence here at the top of the hour. the president offering his first on-camera -- administer or gone in the newsroom a few minutes ago. he was asked about the information and that's what he said. >> our fight is against isis as general mcmaster said, he said and -- foreign minister so a lot
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of great success over the next coming years and we want to get as many help tir richl if possible. >> so tyler the diplomatic intelligence for this white house is the president is going to be in israel on his trip that begins on friday. we'll see whether that relations haves any impact at all on that trip which the white house is counting to be to be successful. tyler. >> thank you very much. today washed point out that press secretary surpriser will not be holding his usual briefing in front of press folks but he'll hold a gaggle, an inform l srumb either in his office or in the press room. >> we'll bring any information if we have any from that gaggle. the cofounder business stone will return to the company on an
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unspecified role. he's got a hold on twitter $15 price target. brian great to have you with us. what do you think this means? >> it's not negative, it's probably positive in the sense that it reinforces that it's not going any where anytime soon as a business. i think it's -- website is a medium that's meant to help turn around -- and that was my initial reaction too when i heard. in terms of impacting the business, i don't think any tangible impact whatsoever from this. they're still facing declining business in the u.s. in european and we can point to some positives right now. sounds like japan is going gang busters with 8% growth right now. the heavy knrevenue there's positives to point to but this won't impact any of the -- >> do you think that jack dorsey
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stays on as ceo considering he's got another job at ceo at square now that business stone is reintroducing the business? >> no. i don't think this is anything about the ceo role, it's not clear to me that stone wob the right person for that job. certainly going in at a level, that's two levels, three levels below the ceo essentially, i mean obviously he stands apart from other managers being a founder, i don't see this as playing into that at all. >> well, with all due republican to business stone whom we've interviewed and seems like a capable guy, he's been gone for six years brian. what skill set do you think he's going to bring to twitter that's going to make a difference? >> well he's done a good job of describing the early days and if you ready about you go, oh yeah i can see how a lot of the
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culture at twitter today is largely informed by a lot of things that stone did in his earlier days. i think there's always been an infinity at that company for the people who were the founders. so, you know it strikes me that -- it doesn't strike me as anything that wouldn't work well. there are still a lot of people who work with twitter who were there in the early days. >> i guess i don't understand drooin, why you see it positive to take the stock off for biz stone to return. as we are to believe as you said adding on to biz stone the manager team i believe is there for twitter disdain. i was in the belief that twitter would be taking over and biz stone seemings likely to deadmonish that likelihood. or biz stone was the founder and now it needs new blood at the company. >> i agree with your former
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statement. it does make sense that stock is up on this. it's nonnegative. but to that point, if twitter is operating as an ongoing business that's not going away any time soon, then why wouldn't you try to reinforce moments of culture. maybe that does communicate that twitter is not shopping itself actively right now. maybe for biz stone you're going i don't think he's going to sell itself that's why i'm willing to invest my time negatively and you're right you could read into that. if entity wants to buy them the company wouldn't know about it right now. >> okay. brian thank you. >> all right the dow taking a turn lower again, united health and major drag on that index.
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bertha kuhns now wondering why the agency is suffering today. >> brian the healthcare is weighing on its and humana today, the department of justice is expected to file a complaint today blowing a whistle-blowing lawsuit with humana with investor poland. poland says when he was united the insurerer would inflate the patient's diagnoses norin order get a different rate. mr. poland filed a lawsuit back in 2011 under the class act and it was sealed earlier this year. this has been an issue with the industry, it has been ongoing many years. it was reported last week the federal government has generated $14 billion in 2010 alone. united has sued the department of health over prior complaints seeking better clarity on coding
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and reimbursement. a spokesman for united health telling cnbc today that the company's confidence it has complied with the rules, calling the complaints murky adding that they will contest these charges vigorously. once again the medicaid advantage coming under pressure because this is something that's likely to weigh on them for a while. >> all right bertha thank you very much. we have home depot hoping to keep the dow afloat to the extent the dow is afloat on this day where it's down 6. bob on the floor of the new york stock exchange. >> it's hard to overestimate how strong home depp's numbers. the stores were up 6%, that's an amazing defeat, the company only have $99 billion in revenue. a lot of companies struggle with
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2%, home depot's got 6% that's an amazing number. everything's going right for home depot right now. they're getting mark share gain, number one. home prices are appreciating, house formation are growing. fundamentals are great. there's a buyback monster one of the small grum group of companies that buyback stock all the time. they've cut their shares outstanding in half and that means all things being equal, bottom line is their earnings per share look 50% better than it would had they had the same number of shares in 2004. put it all together, you get rising home prices, more household, more stock buybacks and there is what you get folks, home depp up 19%. this is one of the few secretary, the do it yourself sector -- retail this year.
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back to you. >> bob, it's a miracle of t.v. you talk about home depot we have a home depot guest. joining us is john sarah. unis the big orange prices this -- last year and they still posted solid earnings growth? >> they did brian. thanks for having me on. we were worried about the april corp comp for the past year. they did it despite poor weather in many areas. they talk about their small ticketless than $50 being flat over the year. that's outdoor garden which account for a lot of that and that was their weakest category. >> so what is there -- t hard to find any holes, i'm going to try
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my best. if you had to point to something that concerned you about home depot's quarter or guidance what would it be john? >> as an analyst i'm trying to be cynical. what not looking for the potential skeleton in the closet. obviously you talk retail, you talk internet threat and we keep trying to find some evidence that the internet is hurting home depot you just can't see it. their internet sales were up 3% year over year. the am of stuff that's found online has picked up in the store. 45% of what is ordered online is picked up at the store. you do worry about the cycle at some point, how far along do you get. but as mentioned, home starts are up, single-family homes are up. evidence of first-time home buyers from the millennials. they're executing well.
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there are a lot of green lights it's hard to find much negative in this print or any other prints in the last several quarters. >> john, in the sales number i also often wonder about the equal of those numbers, and tell me i'm wrong here, is there any inflation in those numbers that would say, hey it's not really their selling more they're selling at higher prices which isn't necessarily a bad thing. or is there anything in there that's drifrp by new store openings or what? what's driving that sales growth? >> so they opened two stores -- >> that ain't much. i'm picking at the wrong knit here. >> yeah. multiple commodities but lumber and soft lumber that's insulated the moe and that account for half of that comp game. so it's a huge number in light
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of that inflation. >> when you get concerns about evaluation it looks like the pe was traded sort of towards the five-year end of its average. >> yeah and bob also made the comment earlier about how this is a cash engine that is able to buyback stock and able to return much of the cash generated to the shareholders in the number of generated buybacks. when you look at the levels of growths the evaluation starts to look recently. i think it only looks expensive if you assume we're near the pique of a psych. i think we're in the fifth of sixth innings. >> i love the millennials are buying homes. john baugh thank you very much i appreciate it. have a good weekend. here's what's coming up on "power lunch" home depot strong results means people are fixing
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their homes. are there reasons to worry people won't be buying new ones. we'll speak to the ceo of one of the companies that made the list. plus a parachute for planes. could it one day save a passenger from a crash. all that and more coming up on "power lunch." i joined the army in july of '98. our 18 year old was in an accident. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life.
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all right now, let's get to the housing mark where we had
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some disappointing construction numbers. this as builders get demand from all these millennials emerging from the basement. diana joining us with more from washington. it wouldn't a terrible number was it? >> no. the housing market did fall more than what was expected but the biggest drop was multi families. take a look at single family, it was barely up for the month, more strongly for the year. sing-family housing starts are still running 18% blow their 25 year average. single family permits which are an indicator of future construction they were down for the month as well. this as demand is starting to surge as you said from the millennials. builders claim they are turning to lower price products -- but analyst are quick to point out these are lower priced, not the
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true starter price home that are needed. only dr horton and lg irr in that space. the problem for others is cheaper homes really hit the margins. >> you can have gross margins deterioration as long as you have fan rise in or the gross. right now we're probably on average from high single digits from home builders. if you're going to see more gross deterioration i think the mark is going to want to see that rise into the least double digits going forward. >> that's why you see builders make a small shift -- back to you guys. >> diana thank you so much. the next guess in the pull back housing construction is a troubling sign for houses. nela welcome. explain to me if you can why housing starts are down, permits are down in a world where demand
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seems to be rising. in other words housing are selling above their asking prices in a lot of markets there are buyers out there? >> if demands was all that was needed for housing we'd be hitting record numbers because demand is that strong and high. but you also need supply and inventory. what the builders are confronting is the labor cost and the lack of available skilled labor in residential construction. land is in credibly expensive especially where consumers, millennials are demands it the most and that puts the breaks on what should be a win win for housing on more construction and high demand. >> as you point out, inventory numbers have been falling so it's not like people are finding previously audiocasset
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previously occupied homes to move into. put it like this millennials want to life in arlington, virginia right? >> a lot of them do. it is not just millennials, first-time buyers are the live blood of the housing markets. millennials are like everyone else, they want to buy a home, especially as they get married especially with children and age into adulthood. we're seeing a lot of that happening but there isn't enough starter home out there. you see more and more buyers chasing fewer and fewer homes that's leading to high competition and demand. agents are saying demand in competition is as high as they've ever seen it in washington, d.c. and that's saying a lot. >> why is there such a labor shortage for builders? >> well, that's a big awesome question. one of the reasons is a lot of that left the housing market during the bust and it never returned. also, this is a mark by the
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quarter, or enup to 20% of quarter up to that labor source coming from another country and our immigration lawes are not supportive of foreign workers coming in and working jobs in places like construction. there's a lot of reason why labor hasn't come roaring back in construction. we keep looking for positive signs but it's not enough to meet the demand right now. >> nela richardson thank you very much. a parachute on a plane. looks cool but could i also save lives. next on "power lunch." nobody does underwater stunts, sylvia. except me, of course. this is my stop. adios! ♪ if you're a stuntman, you cheat death. it's what you do. if you want to save fieen percent
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or moyou switch to geico. it's what you do. número uno!
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pair chutes in airplanes are new. now it has been taken to an entirely new level. phil bou, le beau joins us with more on the story. >> our producers megan rear went up in the air in the new cirrus jet, this is the vision jet and you may see it and say it looks like any personal jet. it does seats 5 adults, it's
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$2 million, the big deal in case you were ever in need of it, in case you have a problem in mid-flight, look what happens when you pull the parachute. yes, it shoots out and expands in diameter about 90 feet. cirrus has done this with other planes, this is the walmart video showing an executive who had a problem with his plane, the parachute was pulled and it landed safely. that's much better than if the plane were to come plummeting down. the president of cirrus sis this is a plane that's appealing to people who want this extra layer of protection. >> the parachute system is so important to our customer at cirrus aircraft. they tell us all the time -- they've coined a tag line for us, the plane with the parachute. it's a fundamental reason people come to cirrus aircraft brand,
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that's what makes us so unique. >> one question i always get, how much has these parachutes been deployed, 71 times. and as you can imagine those people, many of whom been able to walk away from when their plane came down and landed, have been able to walk away from what otherwise could have been a disastrous i knowing. >> this didn't effect the aerodynamics or fluid efficiency? >> i'm sure it effect the fluid, but not the dynamics. >> two questions, if it's been deployed 71 times, i don't know how many years that would be but does that speak to a problem with the plane itself? >> no, tyler i haven't done the exact numbers in terms of the airplane, when i brought this up to pilots and others, especially
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people who had personally planes, i don't get the eye rolling, oh yeah cirrus i wouldn't go near that. they got a good track record. >> let's talk about whether this would be deemployable on a larger aircraft? >> i don't think so. mainly because you're talking about the weight involved there and the engines that are involved in commercial aircrafts, those engines are designed that if the one goes down the other one can get you back to a nearby airplane as quickly as possible. >> but you can distribute parachutes to everybody on the plane tyler. >> you could do that. phil thanks. coming up robots in jobs instead of being a threat to jobs are robots creators? take that next. plus we're counting down to the closing tradings for oil
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coming up. exshares etfs are buid the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.
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. hello once again everybody i'm sue herrera, here's your cnbc news update this hour. national security adviser hr macmaster pushing back of
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allegation of damaging intelligence disclosures. telling reporters that the briefing of president trump's revelation amounted to a routine sharing information. >> in the context of that discussion, what the president discussed with the foreign printster was wholly competent to that situation and consistent with the routine sharing information between the president and any leaders with who he's engaged. starbucks stores in u.s. and canada are only accepting cash today. it experienced a outage when it installed and update software. an extremely ware giant squid has been caught off the coast of ireland. measured in at 19 feet. the squid is a deep ocean living creature rarely seen by humans, it can grow to a length of
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40 feet. that's a lot of calamari. that's your news update at this hour. melissa back to you. >> that's where it went. >> exactly. >> ding l is the seafood capital of ireland. >> maybe this will be on the menu. >> may i suggest cut it up get a ring l and ding l. >> oh please. >> thanks sue. >> you're welcome. >> 90 minutes from the "closing bell" on wall street, the stocks are mixed. we are continuing to watch shares of twitter, the cofounder biz stone is returning to the company in an unspecified role, that stock up 1%. let's get to jackie at the commodity desk. >> the mark's still digesting the news out yesterday that opec may be ensent vised to extent this production cut. the market wants to see a bit of
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a deeper cut to push us forward from here. the extension would be supportive at this point, you can see stocks just over $48 a barel baa real back over to you. we've bumper talking a lot about gruing threat of robots to jobs. it's said more not fewer robots are needed to help the country. steve liesman is also with us. michael thanks for joining us. it was a thought-provoking read it's different than what's here. i want to believe you're right not any of us want a robot to take our point. i guess the beef i'd have with you are you substituting productivity for jobs? do you think it'll be an overall positive for the american worker? >> i think it'll be an overall
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positive for jobs. my keg line now is don't fear the robots. what we've seep is the industry that had more productivity growth which is digital industries are also the ones that have had more job growth. they have had more job growth, wage growth j really at this point now what the economy is suffering from is a profound productivity in the physical industries. the physical industries are the ones that would benefit more from robots. what we'd see is prices would drop, we'd have more demand and more demand for workers as well. this is the way the economy has been working. there's no sense in which robots have been taking jobs overall, wee need more productivity and more good jobs too. >> so michael, i think what's going on right now, if i can just take a step back from all this, is a bit of, you know, revenge of the machines right now. the public policy debate has
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swung one way and it's gone against robot and against foreign prey, i think there's a bunch of folks -- and i don't think your article is part of it, but rethinking all of the nasty rhetoric out there, ultimately what i think is we should be coming back to the old economics. productivity is good it ultimately lowers prices, we do extra with our money from the cheaper imported goods or technology advance advancement. >> ecommerce firms have created from the -- many more jobs have been lost in retail. what happens is that when you lower prices as you say that we have productivity and we have higher wages.
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now what we're suffering from in this economy at this point is productivity growth and we need to get away from that. and robots, you know people view robots -- technology to physical industries, transportation, manufacturing and retail and turning into more productive and people still want more of these goods and services. the jobs aren't going away. >> i think something else that's happened michael, is the people who are threatened by technology development has change. and it's people who might be on air, might be one that is write for newspaper, might be one for example, so i think the class of person who is effected by it. ultimately there's another study out that i read this afternoon, that talks about what we have not had. your numbers are right productivity is low.
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the job description is 160 lower. the turn out there where people -- it's a particular class of people that lose their jobs that are now out there complaining about what happened. >> also happening at this point is that we've had technology growth in one area which is digital. we haven't had a lot of advances in manufacturing or transportation or materials, and in some sense what we need to do is get more innovation into the economy, more growth that's going to raise people's standard of living. >> excuse me i'm sorry to interrupt. >> i was going to say that yes, there will be people that's left behind that we have to help out and that's an important part of it. there's going to be disruption, there's no doubt about it but it's the old trade off. we have to have productivity growth to raise standards of living for people at the bottom, then we have to make sure the people left behind are taken care of. very important. >> you know, michael i was at a
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symposium not long ago where a tech executive said he believes 70% of big companies won't be around in 20 years, that they'll whither away, made the case along with that that every company, big and small will need over the next decade a digital strad ji to survive the thrive. do you agree with that? >> i don't talk in terms of digit tat strategies, but i talk no terms of digital formations. that's a really -- i guess nervous when people talk digital strategy because they're not talking about fundamental transformation. the digital is 25% of the economy. that's doing good, a lot of job
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growth, physical industries growing, 40% of the economy growing much much slower. >> michael, i also wonder if we need a broader national strategy when it comes to digital, and at least if it drift the other way when it comes to fear of technology and the technology policies out there as well as the anti-trade policy and which by the way some technology are important or by the way, it could spur technology growth. i'm wondering if something in that regard is needed here? >> we need to accept that innovation is a plus for american workers as a whole, not just for the people on the top or bottom, but the people in the middle too. that in sense we haven't had very much productivity growth for the last 15 years that's why the economy has been so sluggish, that's why people are
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so unhappy and we need this to spread to the physical productivity as you know that is concentrated in the country of those left behind. >> and you make the part very important, the non-technology industries are derightlated -- >> my question is this michael, if a million truck drivers lose their job, or a million retailers lose their job, what they going to do? >> let's talk about the truck drivers you're not going to have a -- those things have to work perfectly. -on what that means, it means you're going to have a lot more technicians who can fix complex -- >> is everybody going to do that? >> well a lot of people -- vs. have right now. -- >> you can't say everybody can
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do everything. >> the price of trucking will go down, there will be surplus money in the economy, that will lead to other jobs and other industry that is do not yet exist. >> that's the way it works. >> it has but this is different because machines are learning and thinking -- >> everybody always says this time is different i know i get it, i get it. as somewhat of a student of history i get it i just don't believe this time is different. >> so everything we've seen up to this point the jobs have been created and not destroyed. you could be right -- >> the difference so far. >> history is a terrible precedent -- >> it was a lot worse back then. >> all right guys thank you. got to leave it there. >> don't fear the robots. coming up the crowded tech trade. it seems like everybody is piling with just a couple
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stocks, will robots save us? "trading nation" is next. story about people. people who rely on us every day to deliver their dreams. they're handing us more than mail. they're handing us their business. and while we make more e-commerce deliveries to homes than anyone else in the country we never forget... that your business is our business. the united states postal service. priority: you ♪ ♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪ wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com
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just four stocks make up more than 10% of the s&p 500. microsoft, amazon and facebook. does that make the market july national? time for "trading nation." ari wald and gina. i get nervous everyone's piling into the same stocks. bank of america had a note out this morning, 40% of the qqq is just five stocks. 40% five stocks. what happens if they roll over? >> well obviously the bigger they are the more they're going to fall. the outlook for these stocks is interesting, they've each proven to be -- which doesn't make any sense but here it is. you look at technology, technology is the core of everything we're looking at going forward. amazon continues to take market
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share. look at what's happening to target, they're killing target. apple celebrating its tenth anniversary of the iphone, they haven't innovated much and yet we continue to see strong demand for iphones. and so each of those stocks have an individual positive result and what it's telling you is that the rest of the market doesn't have a good story. that's the bigger problem. >> yeah, maybe it is. i guess ari wald, the question is will the big guys fall over? if the 40% or 10% or whatever it is keeps going up and the giant pulling the rest of the market cart, do you see a concern that the rest of these companies may roll over? >> i want to take this in two different angles, one, this is not a market concern. the fact those stocks are doing well tell us nothing about the rest of the market. the rest of the market's holding
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up fine. here's the second angle i wanted to hit on. i think what you stumbled upon here brian, is the exact reasons so many investors have a difficult time beating the s&p 500. typical investor psychology is to buy low and sell high. we want to sell our winners and buy our losers. this is the exact opposite thing what the s&p 500 does. the s&p 500 does not get rebalanced. the better performing stocks become bigger parts of the average, it lets its winner run. it's a momentum strategy. what all the academic research telling us is not only do we want to let our winners run we want to add to them. we should be adding to these stocks not fading them. no signs of cracks in those stocks, we like them and we think they go higher. >> that's good news for people that don't own the stocks because they're pulling
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everything up. random small caps are being brought up by amazon.com. ari wald and gina sanchez thank you very much. for more "trading nation" go to our website trading nation daut cnbc.com. >> the company ceo joins us next . . next.
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cnbc. >> that's the late night version. >> unbc. >> not suitable for work, cnbc. our fifth annual disrupter list, we are live now with julia, digging a little deeper inside the companies, and hopefully digging me out of the hole i dug
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for my young self. >> well, i'm here at no. 2 on the list, lyft, and this year's companies were more competitive than ever with a record 838 companies nominated, in the final 50, bigger than ever, total value, 239 billion dollars with uber, the biggest of them, valued at $70 billion. there are 31 companies on the list unicorns worth a billion dollars or more, and all together, the 50 companies raised $44 billion in venture capital. now, seven companies have been on the list all five years, but there's 19 newcomers this year, and who's been on all five? airbnb. they are not concerned the does runting hotels slows them down poised to continue their growth. >> this is the 21st century. i think consumers have spoken, 160 million people used airbnb
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finding it a positive experience, so i think, you know, hotels should recognize what are the lessons that can be learned from our success? some of them are finding its their own business. >> airbnb is followed by lyft, wework, and then uptake, and this year, there's a growing number of international disrupters on the list. in addition to grab, based in singapore, there's canadian trulio, blipper, spotify, and indian easy tap. back to you. >> thank you. that brings us to no. 16 from india, easy tap, a mobile company changing how people pay for goods and services with over 70,000 companies using point of sale devices, received over $134 million in funding, and the venture capital, lead investor in this, let's bring in bobby.
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thanks for being with us. >> thanks for having me. >> you're based in india, a unique marketplace, correct? recentlily, modi, demontized the money there, so global payments is important? >> yes. they are going through digitalization of everything, starting with commerce, transportation, and now banking. that is the biggest, and so i think about five years ago, the private sector lost, but the government sector stepped in three years ago. invested heavily in technology, and so 100 million bank accounts, and every single citizen now logged online, and that was all in place of that modernization happened, wiped out two major currency bills overnight. >> right. >> forcing consumers to adopt infrastructures in place. >> right. how do you make money? is it the actual sale of the
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point of sale devices, or a software service or both? >> actually, early on, we realized india was different than the u.s. on multiple projects. in the u.s. payment companies, they make money through transactions. in emerging markets, we had to transform payments into a software business. eztap allows businesses to plug into a payment infrastructure, and from there, we charge a software fee. one of the first software models. >> thank you for saying we're not the uber. amazon web services, you can see the shift there. in many ways, the emerging market ahead of the united states? we hear this all the time, spending trillions, billions, on fiber, hard line stuff. the emerging market jumped over that from 100% mobile. >> exactly. not many people know that. you had tried and tested infrastructure like cars, but india's problem is zero, and what's nice -- this is probably the only good thing about being
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a developing country, when you time it correctly, you can actually put out rails that are best in class with new architecture. what we've done is not just enable cards, but 100 million active wallet users. people pay with a wallet on a saturday, but there's hundreds of millions of people using if for every good. the government created a mix mash of paypal, g-mail, i give you the e-mail address, and there's infrastructure here that's exploding in the payment options in a way that's probably five years ahead of the u.s. already. >> bobby, thanks for coming by. appreciate it. >> my pleasure. >> thank you. good luck, and congrats on making the list. >> thank you so much. >> check, please is next.
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often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. today, up to date on the stock and who is winning. today, who is winning is charles way. that's not to say that the stock giant is winning the conduct. he's not. he's in last place, but his pack, amd, is the number one stock in the s&p 500 today. up about, what is that? 10, almost 11%. of course, it had a big cratering last week or ten days ago. the number one stock and number one winner right now so far is valeant, tim's pick, right? >> it was. better than expected earnings, announced they paid down some
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debts, and that stock popped 24% on may 9th when we talked last to tim. >> lead insurmountable. >> 24 points in one day. >> that's daunting. >> remember the atlanta falcon, never know. >> that's true. >> thanks for watching "power lunch." >> "closing bell" starts right now. have a great weekend, everybody. inside joke. ♪ it's -- i tried to do a rendition earlier, bill. >> oh, trust me, hers was creative. ♪ my house anyway, welcome to "closing bell, everyone, i'm kelly evans. >> i'm bill griffeth, housing play for home depot is a leader in the market today, and while it seems like the only reliable retail s

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