Skip to main content

tv   Power Lunch  CNBC  August 1, 2017 1:00pm-3:00pm EDT

1:00 pm
i've been in sprint for a long time this is a different reason to be in t-mobile. and it is tied to the apple, the launch of the iphone 8 so i like t-mobile here. >> all right about 25 points or so away from dow. will we get there in the next hour who knows. that's why you have to watch "power lunch." and it starts right now. >> thanks, scott yeah, will we get there? that is topping your menu. earlier today, the dow coming just ten points away from that 22,000 mark for the first time ever and we are now up nearly 20% since president trump was elected. but we are headed into the two historically worst months for stocks so with august heat, will it wilt your investment on the west wing front, with health care likely behind it, will the administration be able to get to its biggest goal, tax reform and it is day two of our special series, "make it in america. and today you'll meet a minnesota company that has survived and thrived, getting back to this man, chester a.
1:01 pm
arthur, president of the united states it is a big day on "power lunch," hon. and it starts right now, jon najarian, don't ya know? esther a. arthur was a friend of mine welcome, i'm tyler mathisen. what a beautiful turn you made, nick that is good what else is happening this hour amtrak and lyft announcing a partnership beginning today. customers can use the amtrak mobile app to access the lyft app to request a ride. presumably from the train station home or whatever u.s. automakers reporting sharp sales declines in july fiat, chrysler and gm, down double digits. ford sales down last month and credit card losses hitting a four-year high, according to ratings. the average chargeoff rate, the percentage of debt that's written off as a loss, came in at 3.29% in the second quarter the eighth largest card issues
1:02 pm
also saw their chargeoff rates increasing what some say is a worrisome sign for the markets and the economy. melissa. >> all right, tyler. and welcome to "power lunch. i'm melissa lee. we are on the hunt for dow 22 k. haven't hit it quite get but the dow did manage to knock a new high in the session. some eye-popping stats on the dow's run. it is now up for six straight sessions if we hold here, it will be its fifth straight record close, its 31st of the year not bad, bob >> a lot of numbers there, melissa. so the good news is, the dow is really on fire, folks. the bad news is, it's kind of a concentrated rally so we're just at the door of 22,000 let me show you what led from 21,000 to 22,000 folks, it's mostly boeing. 400,000 points is boeing mcdonald's contributed united health contributed, caterpillar contributed. but all 26 of the rest of the dow components only aadded to 150 of the points. it's concentrated.
1:03 pm
how on fire is the dow take a look at this we're statistic. the dow industrial up 240 points in the last four days. the s&p is down, folks you don't see that very, very often. i can't remember and there's boeing, just take a look boeing is up by $10 in the last four days. that adds about 70 points to the dow. you see what i mean? price-weighted, big movers, move up suddenly. and you start moving the index along with it. what we need here is some new leadership so here's some ideas oil stocks chevron, good numbers. the stock has been moving up as oil has been moving towards $50. procter & gamble, good numbers stock not doing anything for a while, it too started moving up since its earnings report. how about retail doing better. walmart, waiting for the numbers out. but in the last four or five days, it too has been creeping up and that's why we keep hitting new highs. little, little revolving into different sectors. guys, back to you. >> all right, bob, thank you very much. and as bob said, folks, lately everything is up. stocks are up. earnings are up. jobs are up. wages are up
1:04 pm
but you know what? it's good news, though it's in the past we want to know what is going to happen from here on out, and for that, kate warren, principle investment strategist at edward jones. kate and craig, no doubt smiling because their funds are probably up, as well. but kate, again, it's not to be a sort of pollyanna, but that was in the past. we want to know what is going to happen are you as optimistic, given the run we have had in the last couple of months and really years, that we can continue to see these kinds of gains for equities >> i think we're going to continue to see gains. but i don't think they'll be these kinds of gains so i'm optimistic, but not quite that optimistic. and the reason is, we're going to continue to see solid economic growth. it's not stellar, it's not improving very much. but it's good enough and we are seeing better earnings and better than expected earnings. and i think it's really earnings that -- the catalyst for the rise in stocks we have seen. and we'll continue to be the catalyst for the rise in stocks
1:05 pm
going forward. but expect a bumpier market and not as smooth a ride and not as big gains as we saw in the first half of the year. >> kate, i guess the question out there is, not why are stocks up we get that. earnings are up. how are earnings able to grow at 6, 7, 8, 9% when the gdp is growing at 2%? either, a., the gdp number is maybe not as trustworthy as we think it is. or b., companies are doing it by cutting costs, and there's only so many cuts you can make. >> i think there's a third source of growth, and that's the fact that the international economy is finally starting to grow and many of the companies reporting better than expected earnings have international sales, and they have been stellar. in addition, over the last few years, what we have seen is earnings growth because we were cutting costs, just as you said. but now they're reporting stronger than expected revenue growth and it's that sales growth that i think has been the real positive that people forgot about. and it's likely to continue to
1:06 pm
drive stocks higher. because as companies are selling more, those cost cuts and that cost control is still in place, and that really gives you a lot, dropping to the bottom line faster earnings growth, as well. so it seals really i think the catalyst and then the future. >> so craig, one of the things that stands out to me as the dow outperforms a couple of the other barometers is that the peculiarity of the way the dow is calculated, namely that it is a price-weighted index in which higher-price stocks like boeing drag the tear and drag the index with it, unlike nasdaq, unlike s&p 500, would you talk about that a little bit and how the dow can be a somewhat misleading indicator of market health >> sure. and you can extrapolate that over to the s&p. this has been an incredibly narrow market. and it's -- with 60% of the money that's going into the market, going into etfs, they're buying the same stocks and so the very thing you talk
1:07 pm
about, the rich getting richer, is what's driving things and so at hodges capital, what we see are some very mispriced stocks, some real disconnects in the market and i do like the rotation we are seeing a healthy rotation out of the momentum stocks, and into some of the laggards out there. and i think that's a very, very healthy -- i think what it matters to your viewers is what you own. you need to own things that can move next quarter, and next quarter. not the things that necessarily have been moving and i think that's a little bit of the fallacy that's out there right now. >> so when you look at -- craig, i know you like the small-cap regional bank specifically what's the main driver there i mean, i'm guessing it's not a steepening yield curve at this point that that's the main factor you're also saying that texas is one of the hottest banking markets in the country, which is interesting to me, given, you know, the question mark next to the oil market still >> sure. and the perception has been that the energy situation would drag down texas banks and that was the real disconnect
1:08 pm
of 2016. made tremendous money. but the regional texas banks, the legacies, the independent banks, the triumph banks, those names, smaller names, there's been a lot of consolidation. and it's probably one of the best economic situations in the country. the job growth in this state -- and there's a lot of son coloradodation you see a lot of smaller banks starting to eat -- you know, buy each other up and such and so those things are very, very well-situated and if you look at the demographics over the next 20 years, these banks ought to do incredibly well. >> guys. >> yeah, we've got to wrap it up there. but we'll get you back on soon, especially with these markets. kate and craig, thank you. >> my pleasure. now a technical look at the markets. what the charts are saying about where we go from here. joining us now is katie stockton, chief technical analyst at btig. katie, great to have you with us the focus today, as much as
1:09 pm
professional watchers don't focus on it, is the dow. let's go with the dow. what i've been noticing and what i lot of watchers have been noticing, a potential breakdown in the transports recently the transports down, what, 4.5%, 5%, in just the past month alone. is that a warning sign for the dow? >> i don't think so. i do think that the dow industrials are poised for a pullback but i wouldn't see it as a warning sign i know a lot of people talk about dow theory whenever you get a divergence between the transports and the industrials but i wouldn't read too much into it. the dow theory really, the tenets don't describe it as such so while the transports may exhibit down side during pullback, i don't see it as a warning signal here. >> what sort of pullback are we talking about, and are you seeing the same commensurate pullba pullback from the s&p 500? >> this would be a natural place for a pullback for both of the major indices. you can see they're approaching
1:10 pm
some resistance around 22,000. that's a round number. you'll notice at past round numbers, 21,000, 20,000, there was short-term resistance at those levels it would be a very natural place to see it pull back for the dow industrials, and for the s&p 500. almost reached a measured move price projection from its previous breakout. so you have a lot of reasons to expect a pullback just based on the levels that are in play. and also, of course, you have overbought conditions and what could be described as overly complacent sentiment. >> so in terms of what the leadership will be on the down side, you mentioned transports but in terms of the dow jones industrial specifically, would it be the stocks that led the most i mean, for instance, a boeing are you most concerned about the ones that have advanced the most >> i am concerned about the mean reversion we have already started to see, where the overbought stocks -- like the facebooks of the world, or the boeings of the world -- that have really run up they're looking somewhat overextended here. whereas you're catching a bid in the more oversold areas in the market, say, energy, or retail
1:11 pm
i think that will persist, but really for just the next couple weeks, and that will ultimately give way to a buying opportunity. >> what's the dollar telling you? >> dollar weakness is really persistent, isn't it so we have a down trend, of course, in the dollar index. and we have seen a pretty major breakout in the euro against the dollar so we do have targets for the euro that are higher, and therein would expect the dollar to see down side follow through, if not immediately, ultimately downside follow through there. >> so is a weak dollar supportive of equities because that's the conventional wisdom, and that's what we have seen so far. >> yeah, i mean, you look at these correlations, and they really break up at times and they're just not that reliable, except over the very long-term time frame so i think that we've already seen equities forge higher, and, of course, emerging market equities forged higher, and i think that trend can persist beyond the long term. >> katie, thank you. shortly after 1:00 p.m., and so far nobody has been fired at the white house today that we
1:12 pm
know and the administration is moving to push ahead and get its agenda back on track. according to our next guest, that could be a heavy lift veteran republican strategist, mike murphy, says the president has created a "lord of fesli" atmosphere in the west wing. he joins us live, next i know-- i got a loan 20 years ago, and i got robbed. that's why i started lendingtree-- the only place you can compare up to 5 real offers side by side, for free. it's like shopping for hotels online, but our average customer can save twenty thousand dollars. at lendingtree, you know you're getting the best deal. so take the power back and come to, because at lendingtree when banks compete, you win. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.
1:13 pm
switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.
1:14 pm
switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. it has been a rather quiet day in washington. hey, at least so far but the questions that everybody still wants answered are, if the staff changes may finally be
1:15 pm
over and the work of getting things done can finally get started, especially with tax reform kayla tausche is live at the white house with more. >> reporter: brian, it might be quiet figurely, but not literally. forgive me for the work being done on the white house lawn and bear with me during this noise interestingly, just a day after the ousting of communications director, anthony scaramucci, the "new york times" is reporting that former fox news executive, bill shine, is in discussion with the white house for a potential communications role we'll see where those conversations lead but the white house is moving on in the policy arena, and beginning discussions over the debt ceiling and health care for instance, secretary mnuchin meeting with senate aides, and a meeting set to take place here at the white house this afternoon on health care and other issues with general john kelly, the former marine commander, who is now charged with coral alling all of the
1:16 pm
personnel here at the west wing. here is senator ron johnson of wisconsin, who was ambivalent last week when he voted yes on health care, talking to nbc news last hour about that meeting. >> i spoke to governor walker. i know he was at the white house yesterday, i'll be going over there later today. obamacare is a mess. it's not something we can stop on leader mcconnell left the bill on the calendar. with this reconciliation, perhaps we can go through september 30th so we're going to keep working on this. >> reporter: on a legislative front, one bill that the president has not signed is the sanctions bill that senate aides and gop aides say was sent to the white house midday on friday yesterday, the white house said it had not received it, although today they say they have but the president has not commented on this bill specifically, or the discussion by russia to retaliate by moving to expel some 800 u.s. diplomats out of the country before that bill was even signed we'll see if and when that bill is set to be signed this week.
1:17 pm
and that is sure to come up with a press briefing within the next hour as for the public schedule, the only thing on the president's schedule today publicly is an event happening this afternoon celebrating anniversary of the small business administration, where about 100 small business leaders are set to be here at the white house, where we're told the president will be making a speech, touting tax reform we'll bring that to you a little later on guys, back to you. >> kayla, thanks very much president trump keeping his phone, yes, and he is back on twitter today, telling folks that only his enemies and the fake news want him to stop tweeting so will john kelly, mr. trump's newly appointed chief of staff, be able to control the message and the man he works for joining us is the veteran republican strategist, mike murphy mike, welcome. good to see you. who needs whom more here mr. trump or general kelly >> well, that's a great question it really, in any successful white house, is a partnership. you've got to have a president
1:18 pm
who trusts the chief of staff to empower them enough to run a staff process that's orderly and effective, and has the confidence of the other actors in d.c so there's no doubt the general kelly, by experience and by temperament, is the kind of organized, squared away, four-star marine who could bring order to the process but only if the president, who has essentially been his own chief of staff until now, is able to invest in him. and that is still the open, open question you know, president trump is not a young guy. and he's not the kind of guy who has changed a lot in his career. so this would be a challenge for him and kelly. >> that brings me to a question i'm going to ask you in the next hour to our guest, who has written a book on the chiefs of staff. you know, i heard corey lewandowski on one of the sunday shows that anyone say -- that anyone who thinks they can change donald trump does not know donald trump. if that is true, can general kelly succeed in his job >> no. and there will be more anarchy
1:19 pm
and general kelly will eventually resign or be fired. i think the general is probably trying to find a hybrid approach, which, while not optimal is better than the thunder dome, "lord of the flies" thing they have now with everybody knifing each other in the chest. i applaud him for his day one move when he took the job, i'm sure the president made assurances, you will be in charge and he tested that by firing the infamous mooch now, that was an easy firing, because mooch had gotten himself in so much trouble the question will be now, on day two, three, four, to 200, can the general put a system in place that makes this an adult white house, not a romper room and ultimately, the president created the atmosphere he's going to have to be a partner in uncreating it and, you know, lewandowski may be right if nothing changes, then the problem is not going to get fixed. >> you're right, mike. and scaramucci made it very easy for kelly to fire him, and for people to justify the firing at the same time, you know, do you think that there needs to be more sort of machiavellian
1:20 pm
firings in order to prove, really, that he is in control? do you expect more heads to roll >> i wouldn't be surprised i mean, there has to be order. and one of the challenges of the trump white house is the president runs his own kind of rogue communications effort with hope hicks, one of his trusted aides, when he wants to talk to reporters, he can just go through hope doesn't always check in with the chief of staff, or at least historically, to the com director all of that has to change to put the incredible power of a white house staff behind the president, so they know there's somebody in charge, and they can all work together instead of looking at their own agendas by leaking on each other. so i don't think it has to be a complete bloodletting. but the chief of staff has to operate like a chief of staff, which means people report through general kelly to have access to the president, and it's a more grown-up, team atmosphere and that's just a huge open question, can they change the culture they have had so far. >> mike, i'm going to take the other side just a bit, if i can. >> sure, sure. >> just to be fair, on the other
1:21 pm
side, which is this. maybe we've got re cency by i can't say. reagan had four. at the changes at the top in this high-level position are not abnormal perhaps we should maybe -- i don't want to see give him a mulligan, but this is a political novice team for the most part. is there a chance we can get through this, and get the agenda items done give him a bit of a six-month break here >> well, i think, you know, that's a fair point you make they do change it tends to be one a year, historically, give or take it's an incredibly hard job. so, yes, they have a window now to change a lot. but only if the president really buys into it, and, you know, he has not been the most disciplined guy. he's had some success in politics with it he has yet to have any success in governing i think it hurt him in the health care battle that he did not have the full weight of the
1:22 pm
optimal white house operation behind him, at least as a communication device because everything we read about what's going on there is the daily reality show of who is leaking on who that just as a huge opportunity cost to the presidency but you're right they could earn a mulligan now and day one, pretty good >> hey, mike, on that note, this -- as we know in the media, leakers leak because they want to, they've got a vendetta, or they have something they are trying to get out. but leaks may not inspire confidence in the people that you are leaking on do you believe that trump's team believes in him? >> i think it's mixed. i think there's a real lack of loyalty inside the white house, because they have become loyal to their own factions, because of all the intra-mural power stru struggling and machiavellian going on, the chessboard they're playing on and the president fending one side off against another, and giving everybody access and complaining about one aide to another aide, making that aide feel insecure and then
1:23 pm
reversing. and frankly, not showing any loyalty down while expecting loyalty up has created this disorder now, he's got asquared away gu in general kelly, who can bring order to this and make it a grownup thing. but only if the president backs him up if three days from now the president decides to undercut somebody, or, you know, go back to the old behavior, and undercuts general kelly, i have a feeling -- i've known a few marine generals, he won't stand for it so almost a peer in the job. which is a good thing for running the country, which is what this is supposed to be about. >> all right, mike thanks very much >> thank you up next, under armour under pressure we'll tell you why the pride of baltimore is deep in the red zone today. and later, there is something cagey going on with egg prices we'll tell you what that is, when "power lunch" returns
1:24 pm
approaching medicare eligibility? don't put off checking out your medicare options until 65. now is a good time to get the ball rolling. medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's what it means to go long™. call now and request this free decision guide and explore the range of aarp medicare supplement plans. all plans like these let you choose any doctor or hospital
1:25 pm
that accepts medicare patients. these are the only medicare supplement insurance plans endorsed by aarp. call now and request your free decision guide... and start gathering the information you need to help you go long™.
1:26 pm
welcome back, everybody, to "power lunch." i'm tyler mathisen under armour a big underdog right now after the company slashed guidance and announced a restructuring. this year the stock is down some 35%. trading at levels not seen since the summer of 2013 dom chu. >> what's happened >> here's what we've got first of all, it is the worst-performing stock right now in the s&p 500 today that's after this athletic apparel maker posted a smaller than expected loss than analysts were looking for on average. also posted a narrow beat on sales. but it's the forecast this time around four-year earnings now expected
1:27 pm
to be 37 to 40 cents a share estimates were closer to 42 cents a share in full-year profits. under armour also lowered its sales growth forecast, 9 to 11% now. it used to be 11 to 12%. now, you mentioned that restructuring, tyler it's being put into effect and ceo kevin plank said the goal is to market cycle and grow digital initiatives. the bad news is, 280 job cuts. about 2% of its global work force, half of those jobs are going to be losses at the company's baltimore headquarters all of this, guys, in the context of a company trying to expand its horizons, become a bigger player when it comes to sports, lifestyle brands, as opposed to straightup performance gear by the way, the stock already, like you said, one of the worst performers in the s&p this year. it is, actually, the worst-performing stock in the s&p 500 over the last 12 months. >> and what's interesting is that its compatriots in the space are not seeing this outsized move that under
1:28 pm
armour -- investors are really seeing this as a uaa problem >> a uaa problem in the context of much larger competitors when it comes to nike globally something interesting kevin plank said on the conference call he said they represented performance in terms of gear, and that gives them the license or permission to go into sports lifestyle. something where they're trying to takeon these much bigger competitors. >> but as a former fund manager, is it -- this is a good lesson that maybe under armour, while still doing well -- it's not dying, it's just not growing as fast as people wanted, that you've got to be careful that just because somebody grows four or five years in a row doesn't mean forever. >> this ath leisure trend -- i said ath leisure i know, maybe lululemon can provide me the gear. i will point this out just for some fun you know who is on the cover of
1:29 pm
this month's agent leath leisure magazine it is our own sarah eisen. >> there is an ath leisure magazine >> you're going to love that you're going to scream your head off, yes go check that out. it's pretty funny. pretty interesting interview. >> one of the things that seems to me that under armour set the expectations very high several years ago with very bold profit and revenue forecasts. >> and this is kevin flanplank,a personality, but all measure, a great operator of the business but expectations for the company's growth were so high out there. people said there is so much runway for them to catch up to nike or adidas. >> and kevin plank, great guy, opening hotels in baltimore, horses, horse racing, you get distracted sometimes. >> wonderful whiskey. >> sagimore. >> nobody listened to your last answer because they were looking
1:30 pm
for sarah eisen on ath leisure magazine. for the auto business, things are cooling off, not getting hotter not only are sales of mid size cars slumping, sales of suvs and crossovers are slowing down, too. and our phil lebeau is in chicago with the story for us. phil >> yeah, tyler, these are not pretty numbers from the automakers when you look at what happened in july generally speaking, they all reported weaker than expected sales with a few notable exceptions gm led the pack, as far as weakness, down 15.5% there you see fiat, chrysler and ford, big three all negative for the month. toyota bucking the trend most were expecting it to be down 3.5%. it was instead up 3.7% so what was behind the weakness in july? overall for the industry, a number of factors here lower fleet sales. this was a concerted effort by a number of automakers to cut back on sales, particularly to the rental car companies there's still no love for cars if you're looking for a mid size sedan right now, hey, folks, there are lots of deals to be
1:31 pm
made, because nobody really wants to buy them. inventories do remain high how high take a look at shares of general motors its day supply at the end of july, 104 days, to give you some perspective, most wanted to be closer to 65 or 70 days. and gm was not alone ford, looking at 79 days supply at the end of july now, both of these automakers expect to bring those inventory levels down over time. but as you take a look at the annual sales rate for automobiles for the month of july, relative to where we have been over the last six or seven years, the sales pace is expected to come in at 16.7 to 16.9 million vehicles. we'll get that number in the next couple of hours for some comparison, guys, july of last year, the sales rate, 17.88 million. that gives you some perspective on how much things have slowed down over the last year. >> and phil, these seem to be the -- automakers seem to be spending more in order to get each additional sale in terms of the incentives versus the
1:32 pm
increase and the average transaction price. also something that we saw before, which is not a good signful. >> it's not a good sign. and one other fact that this factoid, this statistic provided by edmunds the days to turn rate. in other words, how long it takes for a dealer once they get a vehicle on the lot and sell a vehicle, it was at 79 days in july that is the highest days to turn rate since 2009. to is sho so it shows you dealers are taking longer to sell vehicles, all part of what we're seeing with slower demand in the economy. >> phil, thank you very much >> you bet. shall we show everybody ath leisure magazine >> sure. >> why not there she is sarah eisen on "ath leisure" magazine how do you like that she's the picture of ath leisure. >> is there more ath or more leisure? >> well -- >> does it matter? >> yes >> i don't know. i don't know >> if you're 75 -- if you're 75%
1:33 pm
leisure and 25% ath, you should be leisure ath if if you flip it -- >> there we go let's move on. >> i love it congrats to cincinnati's own sarah eisen. wow. up next -- i'm waiting for the "pet fancy" cover. one cruise liner making waves -- >> pet >> yours only, melissa yours -- could rough waters be ahead? the sea of royal caribbean cruises will join us live, next.
1:34 pm
1:35 pm
1:36 pm
hi, everybody. i'm sue herera here's your cnbc news update this hour. nbc news reporting the senate will vote as late as perhaps 6:00 p.m. eastern time to confirm christopher ray as the next fbi director. if time is yielded, the vote could come a bit earlier. on the "today" show, senator lindsey graham imploring the president to stop the chaos in his administration and vowed that the senate will not change its long-held rules
1:37 pm
to pass legislation just to please mr. trump >> we're not going to change the rules of the senate because he tells us to. we're not going to deal out our democratic colleagues. for 200 years, the minorities had a voice in the senate. i don't want to become the house. i've been in the house, love it. but i'm not going to change 200 years of history because donald trump is mad >> according to beverage digest, soda consumption fell to a 31-year low last year. as many consumers chose healthier drink options. soda has taken a hit at sugar taxes aimed at stemming diabetes and obesity. i'll send it back over to you guys. >> all right thank you very much, sue. let's take a look at your markets. earlier we were within ten points of hitting dow 22,000 the dow jones industrial average now up 20% since the president took office. it has been quite a run. take a look at the price of crude oil, as well oil important to the overall markets. now wti, which is the one traded here, opened the day over 50
1:38 pm
bucks a barrel it has fallen a bit, though, at 48.80. and folks, here is your worthless but nonetheless interesting stat of the day of the nasdaq 100 the median return of all of those names, is an incredible 20% this year, melissa 19 stocks up more than 40% in just seven months. >> wow median just to be clear, as opposed to mean. >> i don't know the difference -- >> sure you do mean is average. median is the middle of the -- range. >> halfway between ath and leisure. >> so the median is 20%. that's good. >> full steam ahead for royal caribbean as the stock cruises to all-time highs after reporting better than expected earnings in revenue numbers. also up more than 40% this year. outperforming its peers. but can it continue to sail smoothly or will global tensions create rough waters? joining us now, ceo of royal caribbean cruises. richard, great to see you again.
1:39 pm
>> thank you great to be back. >> a lot of the analysts are highlighting the strength in the booked position, the remainder of 2017 remains at a record level. the book position for the forward 12-month period is also strong and looks could be on track for another record whether you look at what are some of the factors that could cause that to swing you either higher or lower? >> well, we've just never experienced such a terrific year all of our markets seem to be doing very well. people really seem to be looking to be finding something that gives them memories rather than stuff. and that's all playing to our sweet spot we -- if this continues, we'll continue to do better. but i think prudence says we always have to be cautious and say it's hard to continue doing that well indefinitely. >> in terms of on-ship spending, richard, can you give us an idea, some color as to what people are spending on these days and if they are less concerned about stuff, are they spending more on the excursions,
1:40 pm
for instance >> well, exactly they're looking for the excursions we see a lot more interest in our entertainment. all of the places we go, the destinations have become more important. but as you say, probably one of the real highlights of the cruise now is where we go in the shore excursions we offer to really show them different things they can do we're also -- we're offering more things for the whole family to do. so we have -- you can do surfing on board you can do sky flying. skydiving. you can do all of the kinds of things -- we even have bumper cars. >> richard, i think you would agree, a cruise is the perfect ath leisure event. a combination between sporting and relaxing that said, let's follow up on me melissa's question what about technology. the bracelet you swipe through and pay for things how much are you investing in the technology side? because as we know, phones are
1:41 pm
the new smoking. if you get away from yours for too long, you're going to have some sort of a breakdown how much do you have to invest in technology to make sure people are connected >> well, you've put your finger on something that's very important. this isn't something that people need to do and is of the moment. this is something we need to do to survive in our industry because we need to make sure that our guests have a good time you focused on one element and i know others are focusing on that one element, and that's the guest and what they can do and we have been doing that now for a couple of years. but the technology permeates everything we do it's how our crew get on board how our crew service our guests. and know what our guests wants even how our crew can talk to their own families at home so the technology is everything we do, and it's a big expenditure for us it's no small expense. it always seems easy to do, but
1:42 pm
to make it look easy, it turns out to be very expensive so we have been investing in it. and we expect it to be a big factor in our fleet going forward. >> i ask a question not knowing the answer where do you stand with respect to cuba, number one? and do you have any concerns about global hot spots, for example, in the far east >> well, cuba has been a very strong market for us it's a wonderful place to visit, and our guests really enjoy it but it still represents only 1% of all of our guests and the truth is, the world is a -- i'll use it in a negative sense. a more interesting place than it used to be but people are finding a cruise is a reliable, safe experience they know they're going to have a great time and so i think that's actually why people feel, be eveven more comfortable taking a cruise. i think that is partially behind
1:43 pm
why cruising just seemed to be exploding. for us and for everybody else in the industry, happy to say we seem to be benefitting more than others but i think the whole industry is benefitting from this sense of reliability, consistency, and wherever you are so if you're an american, you have that same reliability overseas. >> richard, question about the balance sheet. you recently restored it to investment grade cash flow seems to be accelerating, as you mentioned, on record bookings, et cetera, and very strong business one analyst out there saying he sees ample opportunity for further repatriation of excess capital, i.e. buybacks or increase to the dividend, which is right now at approximately 1.6% yield is that something the board is considering? >> absolutely. in fact, the board has gone one step further and already authorized an initial $500 million share buyback. and that follows previous buybacks that we have done
1:44 pm
our dividend has been rising at -- well into double digit rates, consistently. and i think most people are expecting the dividend to continue to rise we do see returning capital to our shareholders as something that's very much part of who we are and what we should do in the future >> all right richard, a pleasure to speak with you good to see you. thanks richard fain, royal caribbean. day two of our make it in america series today's company has been around since before thomas edison rolled out his first light bulb. we'll get a history lesson in american manufacturing surviving, coming up. but first, to mr. rick santelli rick >> hi, sully you know, we didn't have big data, but we had some weak data, i can't help but think about personal income numbers this morning. but we have seen yields slip we're down about four base points, as you see on this intraday chart let's look at foreign exchange, shall we, some four-year charts.
1:45 pm
the next chart is the euros versus dollars, a four-year chart. what i'm drawing your attention to is, we have cleared all of the hurdles. here with a 117, 1.18 trade going on, there is virtually nothing -- you see the left side of the chart through most of 2014 thin zone. very difficult to pick where it's going to stop flick it around. let's look at the same index for the same four-year chart still one spot on that chart we haven't gotten below may 2. i've said it before. 92.63. boy, draw a circle around that area on the dollar index chart if we close below it, that will be significant finally, when it comes to hyg, i've talked about it a lot treasures are gone, the vix buried, so the hyg is com. but look at the actual barclays chart. they're under 375. that is definitely something that doesn't auger any negative effects in the fixed income market now, "power lunch" will return in two minutes
1:46 pm
when this bell rings... starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.
1:47 pm
1:48 pm
let's continue our "make it in america week" on "power lunch. we are highlighting companies doing what many say can't be done and making products right here in the good old ewusa. we are going to bob dylan's hometown of duluth, minnesota, where duluth pack has been making high-quality bags since 1882 that, my friends, the same year that thomas edison rolled out the first electrical plant standard oil was founded and the outlaw jesse james shot in the back, but the coward, richard ford joining us now from minneapolis is duluth pack owner and president, tom saga. you're not only making it in america, but your company has survived 24 presidential administrations, two world wars,
1:49 pm
the great depression and countless recessions for all of our entrepreneur viewers out there, that want to make it in america, give us one or two of your keys to that long-term success. >> first, you have to believe in it and you have to be completely dedicated to what you're going to do. and once you do that, and you have the mind-set that we can do this here, we have great people here, we have wonderful customer base here, then you stick to your plans, you learn from your mistakes, and you move forward and you really -- it's a lot of hard work to do it but you can make things in america, and you can make things really, really quality products here that people do seek out >> do they really? i mean, do they look for made in america? i think that's the big question that we have had, as sort of a broadcast team, is to say, okay, it's nice, it's niche. but do people actually go to the store, look at the price tag first, probably, and then look at the point of origin and make a decision have you identified any data to
1:50 pm
that point, tom? >> you know, we have and it's our customers telling us that. specifically when we get around the holiday times, people are out christmas shopping, what we hear over and over is, thank you for being american-made. i did all being american maid i did the majority shopping on your website or retail store ordealer or your dealers. you help us because we are trying to do as much as we can to support american jobs it is not the easiest thing to do when you are out shopping we do here that over and over, thank you, duluth pack, you make your lives easier. we do make it in america and every bag has an american flag in it. like last week, we have flags in our booths and banners that have our american flag.
1:51 pm
we are proud to say that >> if you took the flag out and if you did not make such a point of pointing out that you are hand crafted in the united states how much lower would your sales be >> you know i cannot put an exact number on where it would be i can tell you it is for sure would be lower than what we are doing. people are seeking us out and other thing is we are running that american flag up the flag pole as loud as we can everyday. we are screaming from every mou mountain top and we are made in america. there is a customer base out there that cares about that and employing neighbors and friends and they are doing that by purchasing america made products you got 8,000 different items that you sell. what are the biggest sellers >> a lot of lifestyle. we found 136 years ago with a canoe style pack we still make those today in the same techniques that we did. we really listened to our
1:52 pm
customers because they are the smartest people that we know you make great stuff and we love your stuff we would also like to buy products a, b, c, or x, y, and z that you don't make. we can make products that they are asking us for and that's part of our success and a lot of it is lifestyle to answer your question whether it is a lifestyle backpack or a tote for women or a briefcase for a person to go to work or satchel we do have a lot of outdoors product. what's cool about it, too, tom sega we'll let you go the name that people stick in it, right inside the bag >> that's pride. >> good luck in the winner
1:53 pm
>> richard ford did not kill jesse james. it is roger ford, my mistake up next, jane welsh is not too chicken to get to the bottom of it. >> reporter: america loves its eggs but the problem is not enough we got too many of them. it is hard when you are trying gs sell more expensive cagey eg up next, is there any way to make chicken sale. liberty mutual stood with me
1:54 pm
1:55 pm
when this guy got a flat tire in the middle of the night... so he got home safe. yeah, my dad says our insurance doesn't have that. what?!? with liberty mutual's 24-hour roadside assistance, get a jump, tow, and more - any time of day. switch and you could save $782 on home and auto insurance. call for a free quote today. you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance.
1:56 pm
to make an omelet you have to crag a few eggs to make a cage free omelet, you better crack our wallet. jane welsh is joining us >> reporter: hi, let me try to pick up one of these girls they pioneer cage free and waiting for the market people are cracking fewer cage free eggs. we got home of a situation from a flu outbreak to too many
1:57 pm
people are taking a pass on more expensive cage free. >> when the disparity and commercial eggs and cage-free eggs are closer, people are willing to jump up 10 cents or 30 cents but when disparity is going up to a dollar, it is hard to pay that price >> reporter: now, chris nichols says he lost a lot of money last year he does have customers at whole foods who are will to pay more the stock is down 13%. the fear from restaurant and grocery stores will commit to cage-free. extra supply a hen is more productive out of 100 hens, you will get 77 eggs
1:58 pm
in this pen house, you get 94, they just cannot sell it all sorry. > >> ukraijane, i got to ask you a couple of questions here oh, we got to go that frustrates me to know jane, we love you and we love all the little chicks there. >> no, we don't. there is going to be a white house press briefing we'll be right back. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish,
1:59 pm
prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. i enjoy the fresher things in life.o. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest... ...prices. so if you're anything like me...'ll want to check tripadvisor. we now instantly compare prices... ...from over 200 booking sites... find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices.
2:00 pm
2:01 pm
welcome back, second our of "power lunch." glad you can be with us. we are following three stories at this hour the white house is about to kickoff a press briefing we'll take you there where he down 22,000 and look at that, 26 points away from 22,000 and, the big after the bell would be apple, its reports. we'll tell you the three things you need to watch. there is apple at 149.10 bear that number in mind >> a lot is going on at this hour lets begin at the white house.
2:02 pm
ylan mui is standing by. >> reporter: we are waiting for the briefing by sarah hucklebee sanders. it is america's dream week president trump will be hosting small businesses in the eastern of the white house, he will be joined by his daughter, ivanka and as well as linda mcmanaman meanwhile mnuchin met with mcconnell and schumer today on the hill getting more jobs and both the house and senate when they come back to recess they're trying to get et all done by november just to give you a sense of how difficult it maybe to nail some of the details in that plan, yesterday, white house
2:03 pm
legislative director mark short reporters that the 401 k deduction remains on the table later on yesterday, he started walked back those statements to me in an e-mail and the white house have not provided any clear answer on what would happen with that deductions. that just gives you a sense here of how fluid these negotiate negotiate -- negotiations are made >> ylan, it is an important issue that you are bringing up here we have heard from some people a few months ago that the deduction for 401 k contributions maybe gone the president came out and said don't worry, those deductions are safe we got secretary of state, rex tillerson making an appearance at the daily briefing. lets go now to another part of
2:04 pm
washington >> but, first let me acknowledge and thank our spokesperson for the job she's been doing i know this is a tough position to make for anyone and a unique transition for her she's done a superb job. i don't get to watch her much but i get the feedback from folks at home. heather, i appreciate what you are doing, thank you very much i want to admin congratulations to agent miles for his recognitions over seas it is great for our department as heather indicated that it is been sometimes over the weekend, i think it hit six months and i thought it would be useful to come down here and talk a little bit about what has happened in the last six months. i want to take a little bit walk arn around the world but also kmept
2:05 pm
on so comment some things you maybe interested and leave time for questions. president trump's agenda is articulated really and the platform he ran on make america great again, that's not just a slogan it is important that people understand as we deal with the president and helping him formulate and articulate foreign policies, it is those words, make america great american that we test our policies against and how are we representing america's interests first and for most i think you seen that articulated in many different ways by many different people. it is what guides our formulation here at the state department the president has been cleared that when we say america's first, it does not mean america alone. we do value our friends and allies and rerecogniwe recogni d
2:06 pm
adversaries and enemies. we think of our relationships in those types of terms america's first is not america alone. we want to define with our allies and partners of what our expectations are it is been long over due that we have that kind of conversation with others around the world we have long, long standing relationships that all of you know well are embedded of shared sacrifice. having said that, a lot of things have happened over the last 50 years and certainly a lot has happened since the end of the cold war. i don't know anyone has actually taken a step back and say, you know, these relationships served as well so long, are they going to serve us in the 21st century. a lot of what president trump is doing is he's challenging without disposing and i think it is important that people understand he's not throwing these things away he's challenging them for this entry. how should we define these
2:07 pm
relationships to serve the american people's interests is obviously first and for most in doing so, we are confident serving the global interests of our allies and partners as well. i say it to you to position this little walk that i want to take around the world and as you kind of think about it that way as we came into office, we walk into a number of situations and conflicts and threats around the world and our assessment of the situation requires us to make significant hits and a different direction than our predecessors are taking and in doing so, we create better conditions for security, prosperity in the world and that serves everyone's interests well one of the first that we were confronted was in office was north korea. the first policy that we felt an
2:08 pm
urgency to deal with mass of you have watched over the last several months that threat has materialized in the ways that we expected it would and that's why early on we identified it as an urgent matter and the north koreans have proven the urgency of that to us. we initiated a sustained and continued intensified campaign on what i like to call is peaceful pressure. the options available to us as all of you well understand are limited. in particular if we think we are operating under a short period of time. we felt the appropriate things to do first is seek peaceful pressure on the regime of north korea. have them develop a willingness to sit and talk with us and others but with an understanding of those conditions of those talks, there is no future of north korea to pose nuclear weapons to anywhere in the region, much less to our
2:09 pm
homeland we sought talks with china china does account for 90% of economic activities with north korea. the chinese have been cleared with us that we share the same objectives they do not see it in their interest of north korea to have nuclear weapons just as us china has ways that they can put pressure and influence the north korea regime because of this economic relationship that no one else has we have been cleared with the chinese. we certainly don't blame the chinese of the situation of north korea. only the north koreans to be blamed of the situation. we do believe china has a unique relationship to influence north korea regimes in ways that no one else can that's why we continue to call upon them to use that influence with north korea to create the conditions to where we can have
2:10 pm
a dialogue we have reaffirm our position of north korea of what we are doing, we do not seek a regime change, we do not seek the collapse of the regime d do not seek an acceleration of the peninsula and not seek an excuse of the north and 38th parallel we are not your enemy and your threat you are presenting an unacceptable threat to us and we have to respond. we hope at some point, they'll begin to understand that and that we would like to sit and have a dialogue with them about the future that'll give them the security that they seek and the future economic prosperity of north korea but that do not promote economic prosperity
2:11 pm
throughout northeast asia. this is a continue effort to put the ever great pressure on the north korea's regime our other options honestly are not particularly attractive. i am saying that, i want to acknowledge a couple of people i am going to give some credits to people as i am going through this the first six months we have been carrying out activities with our secretary position and ambassadors to strengthen our organizations. i am proud of what we have accomplished in dealing with north korea and acting assistant susan thornton have been steler in helping us developing these policies. susan thornton has been key to our relationship with china. it is important that everyone understands that north korea does not define our relationship with china our relationship with china is -- if you go back to the
2:12 pm
meeting of president trump and president xi, much of that is discussed of what should the relationships between the u.s. and china be it is been defined of the the historic nixon's visit and the three documents and greeagreeme that's given us a long period of no conflict between china and the u.s. and creating conditions for enormous economic growth and prosperity in china which the u.s. and the rest of the world have benefited from as well. that has defined the last 40 to 50 years of our relationship the question now is that we believe we are at a bit o f a pivot point of that relationship because how china has progressed now to become the second largest economy in the world they'll continue >> that's secretary of state rex tillerson giving an update on u.s. foreign policy as he hits the six months point of a couple of notable point s he made ther. america's first does not mean america alone.
2:13 pm
the diplomatic of the united states is to work with friends of alleys and be weary of adversaries and enemies. he was careful to say that the administration does not blame china for what's going on in north korea. we do not seek regime change or any excuse to send troops above the 38 power line. joining us now is chris whipple. the author of "gate keepers. not only timely but helpful, i think not just for people who are in history but interested in politics but also people in corporate leadership who may want to find what formula works best when working with a close associate. >> it is great to see you. >> lets turn to the task at
2:14 pm
hands which is the task at faces. last time i asked our guest, i heard corey lewandowski say that if anyone thinks they can change donald trump, can he do his job if that's true >> you know it is a hercule's challenge. it is more challenging than anything that's done before. not only off broken white house that cannot do anything right as it has been seen over the last six months but off president and donald trump who's 71-year-old and knows one way of doing things when i wrote "the gate keepers." i predicted donald trump with government experience would not be able to govern unless he empowered a white house chief of
2:15 pm
staff, first among equals to execute his agenda and most importantly telling him what he does not want to hear. that did not happen with reince priebus and we'll see if it will happen with general kelly. >> we are waiting for the white house press briefing as brian pointed out correctly, it is not -- my gosh, it is not that this is the first time we have a change over in white house chief of staff reagan had several and president obama had five or so including a brief term interim fellow. mr. trump has run a family business and he's run it with a kind of decentralized hierarchy. you need to talk to the boss, you talk to the boss mr. kelly comes out of a world where chains of commands is paramount. what did your research tells you of which methods work best in the white house?
2:16 pm
>> the last time, white house chief of staff, it was under jerry ford after nixon resigned. hank lasted for about a month. one of the reasons is because ford had a model very much like donald trump nobody empowered his first among equals he called it the spokes of the wheel with jerry ford in the center it was a disaster. within a monk, ford was begging his old pal to come in and whipped the white house to shape which he did only because jerry ford empowered him to do so the great story that i love is dick cheney, the 34-year-old white house chief of staff for jerry ford, he was given a gift the day he left. it was beautifully packaged and he opened it up and it was a mangled bicycle wheel with every thing broken
2:17 pm
he left it for his predecessor also, he paid the price. so that's the choice you can either try to spokes of the wheel which donald trump had been trying without success or you can empower the white house chief to help you govern >> who were the most effective and powered chief of staff i think i can anticipate your answer james a. baker the third under reagan would be everybody's choice is the gold standard. these were two guys who most importantly were able to walk into the oval office until ronald r ronald reagan and bill clinton's hard truth that's the most important part of the job it is going to be a challenging part of the job for john kelly
2:18 pm
and he and howard baker were able to sit ronald reagan down and asked him everything he knew about the scandal. they made a pact if they decided that if reagan was lying, they would resign we are at a point of this white house where we maybe close to something like that. a conversation that john kelly may have to have with donald trump about his own, his clouds that's hanging over the house. >> back to the point that brian was making earlier and that's we look there at reagan of four different chiefs of staffs in a year george w bush only had two, andy carr >> and three in kwofour years
2:19 pm
do these jobs have a life span are they so hard and demanding and so thank less that you cannot expect to last all that long >> no question about it. it is the toughest job in government every new white house chief and if he's smart does one thing for us, he picks up the phone and called jim baker for advice. what jim baker tells him is congratulations, you got the worst job in government. it is thankless. having said that, changing ch f chiefs of staffs can be a jolt in the arm and it can turn the presidency around. bill clinton it took him a year and a half that he really had to empower the white house of chief
2:20 pm
and he found the perfect guy, leon panetta he came in and turned the white house around >> we are not men minimizie mii battles that we are seeing i could not tell you anything that happened in the chester a arthur administration. the point is if kelly's last year and a half, we may look back at trump administration it does not look that bad. do you believe the pace of this kind of change can continue and will continue? now, this is a white house that really is broken it maybe broken beyond repairs and cannot do anything right it cannot pass legislation and cannot issue executive orders. it cannot prioritize the president's agenda or whatever
2:21 pm
it maybe a functioning white house, all of those things flow from an empowered white house chief of staff which this president has not had. maybe he has or will change his stripes and suddenly welcome a power. >> chris, let me jump in a little bit of that we got the white house briefing. if i am going to vote at seas and it starts to take on water, i guarantee it is nothing beyond prepare. nothing can beyond repair. things need to be in place >> but you have to concede that the thing needs repair and yesterday the president definitely say there is no chaos here if the president does fnot see the need for repair. he said that and he fired reince
2:22 pm
priebus anyway he knew something is wrong you got to recognize it. >> this has to be, might be not repaired to what ever your point of view is but, at the same point, it has to be functioning. somebody has to step up. it has to function >> well, we'll see if that happens or not listen, there is a difference between you know repairing the white house and could well be mission impossible we will find out but you're dealing with not only a white house that's broken but you are dealing a president who is famously resisted to any kind of discipline and you cannot govern effectively when you have a president sending out irrational tweets in the middle of the night trying to pass healthcare and he's tweeting about transgender people in the military you cannot govern that way
2:23 pm
>> finish your thought, chris. sorry, i thought you were. >> it is going to be a task for john kelly and you know we can only hope for the best >> well, maybe it puts into a phone call chris whipple, thanks. awe for of "the gate keepers." >> two things are happening. we are waiting for sarah sanders at the press and the report, coming up after pow "power lunch." you always pay
2:24 pm
2:25 pm
your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.
2:26 pm
all right, welcome back. we are waiting for the white house press briefing for sarah hucklebee sanders. when it begins, we'll take it to you live you will never know what they're going to say like things that's impacting cnbc, that's why we take you live. we are going to bring it to you, in the meantime, lets get back to business and talk about apple. the company reporting its results in less than two hours from now the throw things that we need to be watching and arguably and the biggest and most important earnings report of all, josh
2:27 pm
>> reporter: josh lipton >> reporter: the three things to watch is one is apple's q 4 guidance a gross margin of 38.3%. if apple misses on that fwiguid, what does it tell us of all the reports we have been seeing o f the new flag ship iphones can be delays if it is delayed beyond that, past early november, that could pose a challenge of fiscal 2018 estimates. number 2 is services faster-growing services. and consensus estimates for services and finally greater china. revenue has fallen five straight quarters
2:28 pm
guys, back to you. thank you very much josh brian, it is great to have you with us, one of the key issues that the story has been sort of growing to accept as a possibility delay in the iphone, will there be any sort of tales in term of guidance for the next quarter whether it will tip you off whether if there is a delay? >> we kind of calculated if there is a delay of the iphone 8, it is expected to unveil in september of a four or five billion dollars hit. we are above 49 billion and that's where the street is if you see an outlook on block buster new iphone or expect that the iphone 8 is delayed. >> sorry, brian, we got to interrupt, we got to go to the white house's press briefing with the white house being
2:29 pm
supportive -- >> i am sorry? >> will the white house be supportive of that option? >> sorry, i keep on hearing somebody's phone talking or something. it is distracting. >> the option against north korea is destroying the program itself >> the president has been out spoken about how he feels about north korea and we are weighing all options and keeping all options on the table and as we have said many times before, we are not going to broadcast what we are going to do until it happens. i am sorry what i am saying is that the president is out spoken of the need to stop north korea and we have been focused on stopping the nuclear program and stopping the missiles and aggression and we are keeping all options on the table in order to do that.
2:30 pm
>> according to the washington post, the president tried to change the narrative of the russians' lawyers. can you address that the statement that don, jr. is true the president weighed in based on the limited information that he had this is all discussions frankly of no conference there was no follow up t if democrats want to continue to use this as a pr stunt, they are doing everything they can to keep this story alive in the paper. the president and the american people voted for america's first. john >> he did not dictate but, you know, he weighed in and offered
2:31 pm
suggestions like any fathers would do steven >> is he aware at the time that don, jr. has had a meeting that he will be promised information that was negative about hillary clinton when he suggested and only say that the meeting is primarily about russia adoptions? >> the statement was issued were true and there is no in accuracy in the statement the only thing i see is misleading of years worth of stories that's been fuelling a false narrative of russia collusion and based on anonymous sources. that is if we are going to talk about misleading, that's the only thing misleading that i see of this whole process. you guys are focused on a meeting that don, jr. had no -- that's been the basis of
2:32 pm
all the russia scandal fake news if youwant to talk about this, look further to clinton. clinton was paid half a million dollars to get a speech to thank putin by it. and hillary clinton allowed one fifth of -- if you guys want to talk about having relations which you have seen obsessed doing, look no further than there. if you want to talk at somebody that's tough on russia, look on president trump. he want as stronger military and defense. those things are not good for russia if you guys want to create a narrative that does not exist. >> glenn, go ahead >> sarah, the follow of what you
2:33 pm
are talking about of obsessions of russia. the report based on the lawsuit that was filed that -- [ inaudible two questions, podesta put out the statement, he says the guy did not know the president and the president knew about it. did the president knew about the story? >> the president had no knowledge in the story beyond that, it is ongoing litigation and i refer you to the actual party that's involved which are not the white house. >> and the press secretary and the president of the united states you just gave us a passionate push back on us and focusing on russia
2:34 pm
does it disturb you that there is an allegation out there and this was discussed in your white house. >> he met with members of the media, i don't find that to be a strange thing. >> you guys are all members of the media. >> story was later retracted because of his faults. dis does it disturb you or say anything of the white house? >> it does not bother me that the press secretary would take a meeting in the media about a story. none of that was disclosed you goo uys come to us with stoe all day. i don't know the nature of the story which you are coming to talk to me about i am responding. the president does not have knowledge of the story and the white house did not have any involvement in the story beyond that, it is ongoing litigation so i refer you to the
2:35 pm
parties that it does >> i got two questions for you, i want to follow up something you said yesterday after my first question we were on the flight back from the g-20, did you advise the president to be truth fuful. >> i was not here. i was on the plane but i was not apart of the conversation so i cannot speak beyond that >> yesterday, you said the president was joking about his comments, pushing the suspect's head and pushing in the car. was he making a joke out of brutality? >> he was making a comment and it was a joke and nothing more >> sarah >> should he apologize for that joke it was not a directive, it was a
2:36 pm
joke there is a big difference. >> why was that not clear? >> sarah -- [ inaudible >> he has not signed it. we'll let you know when the details are final. >> what's the delay here you guys have had this since friday, what's holding him back? >> there is nothing holding him back, there is a review and legal process. they're going through that and he will sign the bill and we'll let you guys know. >> margaret. >> i have two questions. the first is an interesting story out that was reported by defense one talking about air force one and it says that u.s. air forces found an alternative to get the price down as president trump wanted >> i also wanted to update on the chief of staff, general
2:37 pm
kelly, can you tell us about calls he made and leadership of congress and folks outside of congress and any governorsand that sort of thing can you tell us of the message he's setting inside and outside of the administration. i know he had spoken to a members of congress as well as a large member of individuals within the staff he's taking time to get there and know everyone in the building and has not met previously through his other role and working through setting up new processes and kind of setting the tone, i think for a white house that under his leadership will be focused on the president's agenda as we have been doing the last six months we'll continue that track and we'll do that under general kelly and we are excited working alongside the process. >> i heard you list off a leist
2:38 pm
of reasons there seems to be a trust that's set. i want to tell you what lyndsey graham said. if this is true, it is hard for us to say to let the other stuff go is this burning the president's creditability issues >> what's hurting the agenda is congre congress' in ability to get things pass. >> the president is not always being truthful >> i think being as truth full and inherit as everyday >> as we have said, we are not
2:39 pm
going to broadcast movements on things like that before they take place we'll continue to work with our allies and partners. the goal is to stop the nuclear and aggression with north korea. we'll continue to look at the best options in ways to accomplish that. >> can you say what are the options? >> not at this time. john sorry, you had your hand up when i went back. >> thank you, sarah. >> you said yesterday and i think you said yesterday that there would be no reshuffle, general sessions would not go over to homeland security, is that correct >> that also means that secretary of state.
2:40 pm
[ inaudible >> i am not aware of any movements for him. as always we have a personnel announcement and i am happy to share it with you. john decker, since we are in the johns. >> i was hoping to follow up and clarifying the administration's message for north korea. when asked about north korea, we'll take care of them, we'll take acare of everything secretary of state tillerson said that the u.s. is trying to convince north korea that the u.s. is not your enemy so which one is it is the president on north korea as an adversary or is secretary tillerson is correct? >> like i said a few minutes ago that the big priorities that we
2:41 pm
laid out and this is the third or fourth times i have done is stop the missiles and the aggressions. that's what we are focused on in regards to north korea and we'll continue to push on that alliess >> are they in adversary >> in some way they get to decide by the accs that they take if they want to stop their nuclear program or stop the gain or missiles or aggression. i think we'll find way to move forward. those are the priorities of the administratio administrations. dave >> secretary mnuchin of the debt ceiling. unfortunately, they did not get anywhere >> i think the whole country is pleased. >> do you have any reason to believe that you will get debt
2:42 pm
ceiling issue done by the end of september? >> ensure that we have robust economic growth and promote fiscal discipline, the trump's administrations to raise the debt ceiling is important. over the past decades, the debt seali ceiling have been raised 15 times. we look forward to work with congress sarah? >> april >> since you said my name so politely >> thank you sarah >> some what sarcastic >> me being sarcastic? >> go ahead. >> could there be an apology from the president and what does he view as reasonable when he's not joking >> i would have to ask on that
2:43 pm
specific question. do you think that the president is remorseful for what he said of the out cry on friday >> i think the president supports our law enforcement and he supports the protection of the citizens of this country and he wants to empower our law enforcement to do their job. i don't think there is nothing beyond that. >> thank you, sarah. [ inaudible >> with particular complex piece of legislation like this is, there is a legal review and once we sign that, we'll work through and put more details of that process out. >> and one more for you, last month the president warned congress a few times, what is
2:44 pm
the president planning >> we'll continue to keep you updated. [ inaudible >> does the press consider that he's refusing to follow an order? sth >> i know the goal is to work with all of the department of defense to lawfully implement that new policy. >> sarah, you would have to ask the president if an apology would be appropriate are you saying that you would ask him and get back to us >> you said yesterday that everybody is reporting to the
2:45 pm
president through jogeneral kel. >> yes, general kelly is -- >> can his daughter or steve bannon wanders in the white house? >> this is the white house, i don't think anybody can wander in the white house this is the president of the united states of america and there are processes. >> people talk to him, they don't wait to get approval >> look, general kelly is going to work with the entire team as he's been doing the last couple of days. he's done a great job of sitting down and talking to individuals of the needs they have the conversations and putting the structure in place there is nothing abnormal about that >> i don't know if i would say approval is the correct word i don't think it is like we are getting permission slips signed. i do think there is something of having a structure process in
2:46 pm
order to just to make things run more smoothly at the white house. >> sarah >> reactions -- >> can you say that again? >> what's the president's reaction of two -- >> over night the regime venezuela's dictator detained of maduro the vice president spoke with mr. lopez just last week and that he and mr. ma and united states condemns the action of the maduro's dictator ship. we hold him responsible for both men. [ inaudible >> again, i am not going broadcast secretary mnuchin
2:47 pm
we'll keep you guys up to date >> can you explain the discrepancy between the president and senior republican seniors from the hill of what can be done. we are pushing a new healthcare system and we know that obamacare is failing and we kno that in action is not okay we want to work with congress to do that. we pay look at other ways to improve healthcare in the meantime, we are also continuing to focus on tax reform
2:48 pm
we had count less meeting and continue to focus on all of those priorities and move them forward. >> there is been suggestions and again among senior republicans that this is appropriate to do and given the president's threats to stop the payment, they're saying this should be taken out of the executive branch >> i have to get back to you on that >> this is something that's discussed on capitol hill. >> i am happy to get back to you. >> thanks. >> pete. [ inaudible >> i am not sure peter thanks, guys we got small business coming up shortly and hopefully, you will all tune in. >> all right, that was sarah sanders answering questions from the press score why ranging from
2:49 pm
everything from north korea to venezuela to working together with congress to advance a debt ceiling bill to discussions over the infamous meeting that donald trump took with a russian lawyer and a statement that was issued by mr. trump jr. in which mr. trump t president was involved in one way or another of the drafting that's where we stand. now we'll take a quick break and come back and kmcheck in on the markets on a day where the dow sits 20 or 30 points from 22,000
2:50 pm
excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that?
2:51 pm
we can do that. then do that. can we do that? we can do that.
2:52 pm
take a look at the markets here, we're still on dow 22,000 watch. the dow did get, 12 points earlier in the session right now the dow jones industrial average at 21,968.7, up by 78 points. still good enough for a fifth straight record closing high not bad. >> meantime, president trump doing what else, tweeting today. the stock market could hit an all-time high again, 22,000 today, 18,000 only six months ago on election day. mainstream media seldom
2:53 pm
mentions we talk about it hourly, but maybe we're sort of -- anyway. he's also taking credit for the economy and that's where steve liesman comes in i can't speak for you. >> i guess we're not mainstream which is fine with me. >> perfectly fine. mr. president, we are -- we are talking about not only this market rally all the time. >> and the growth numbers. >> pretty good jobs numbers. >> dissect this a little bit which is what we do around here, mr. president. just two quart nears your presidency, how much credit can president trump really take for the economy? economists say not very much, though there could be some ways on the margin that he has helped and other way he's hurt. let's go through it all. most economists view the second quarter numbers from a bounce back from the weak first quarter. jpmorgan says the u.s. has actually been an underperformer globally maintaining that 2% average over the first half while the rest of the world has really accelerated and the u.s. growth numbers is about what was expected before the election here are some of the potential
2:54 pm
positive and negative effects mentioned by economists. on the positive side, deregulation the stock market gains, they are somewhat attributed to the president, sometimes largely, which creates a wealth effect and more consumer spending perhaps, confidence and maybe some business investment that wealth effect could be about a quarter point on growth over the point of the year the negatives are the policy uncertainty, the aca repeal failure which ends up pushing back the notion of when they may get to tax reform, the immigration and trade policy that this administration offered as negative. a center right think tank says the end of rising regulatory costs under president obama could be boosting business confidence and maybe business investment he said they reached nearly $900 billion in costs over the past eight years when totalled up and stephen moore says president trump's positive effect is he's pro business and getting the 3% from the current 2.6 will take real legislative changes, not
2:55 pm
executive orders. >> good dissection steve liesman, we'll let you go back to lab. >> pleasure. >> amazon shares bouncing back after a tough reaction to earnings rich ross, all right, the stock down about 4% over the last week is this a 2% discount to amazon? should our viewers be buying amazon stock >> no, not today, brian, look. when it comes to amazon, it's a matter of when, not if the stock is clearly a category killer that time is not now let's go to the charts i'll show you when and where to buy the stock. look, you're down 9% peak to trough and post those earnings the classic sign of trend exhaustion and that set aside for a classic support of the 950 level so i see another 5% downside for amazon and tech more broadly when you zoom out and look at the weekly chart, brian, you can see clearer signs of that weekly trend exhaustion once again with that exhaustive bearish reversal, that set us up for short-term weakness. worst case scenario, you're
2:56 pm
buying the stock at 100 and 150 becoming extremely interested. i'm not buying here today. >> i'm exhausted listening to the exhaustion dennis, are you exhausted with amazon or maybe you have an options strategy >> i'll buy some of rich's amazon from him here the options market is not telling us anything. more of a demand for calls, so this is an area where technical analysis and options kind of break apart, so as far as the options market is concern, call demand is high don't see a lot of people running out to buy it. best logistical company in the world. even -- so long as they keep growing that top line, the current owners, the current shareholders that have company don't care >> all right taking the other side. that's why we do it like this. dennis and rich. thank you both very much reminder, two initial segments at check, please is next. >> and now the late forest and a word from our sponsor. when you own a stock that's
2:57 pm
going higher, help lock in profits by raising your stop order. as your stock moves higher, your risk reward ratio may fall out of balance, so consider raising your exit point to under a gnict pplevel, allowing you to ride the trend as long as possible. th objectivg 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 for a prospectus containing this information. read it carefully.
2:58 pm
whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to and shop multiple loan offers for free! free? yeah. could save thousands. you should probably buy me dinner. no. go to for a new home loan or refinance.
2:59 pm
receive up to five free offers and choose the loan that's right for you. our average customer could lower their monthly bills by over three hundred dollars. go to right now. mikboth served in the navy.s, i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get your insurance quote today. check, please. >> 30 seconds to go in this hour the dow closing in on 22,000 will it happen in the final hour of the trading day that's your suspense. >> and, of course, we're watching apple reporting
3:00 pm
earnings after the bell. full breakdown and conference call coverage on "fast money" tonight. >> yeah, and if you -- three reasons to watch "closing bell." dow 22,000, bill griffeth and sara eisen, the cover girl for the latest issue of athleisure magazine you look amazing. >> very athletic. >> very leisurely. >> take it away, guys. >> i'm trying to put the leisure in athleisure. >> some of the photos you took, you're a pool shark, no idea. >> well, i learned for that photo shoot. i made sure barbie was behind me how about the yoga pose though. >> i love that, very nice. >> came out on under armour earnings day so we got to talk about it a lot thanks, "power lunch." welcome to "closing bell." i'm sara eisen in for kelly evans at the new york stock exchange. >> have to cancel the segment we


info Stream Only

Uploaded by TV Archive on