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tv   Power Lunch  CNBC  February 23, 2017 1:00pm-3:01pm EST

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final trade, i -- sxl, 8% yield, pretty fat, there's a merger out there hanging over it. a compelling buy. >> jcpenney reports tomorrow, a stock i've been in for a long time. we'll talk it tomorrow. >> that's all for us." power lunch" starts right now. ♪ i'm melissa lee, washington again the center of the universe for your money today. president wrapping up a meeting with the top manufacturing ceos at the white house the same day treasury secretary gave first major interview since taking the job here. plus, the bean town blues, boston baked stocks having a wicked rough day, and, later, out with the inbox. productivity sore if we stopped using e-mail? that debate ahead. "power lunch" starts right now.
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♪ >> e-mail is like led gas or the designated hitter. outlived usefulness. let it go. welcome to "power lunch," another record day for the dow and s&p. no huge gains, but still every high is a record high. johnson and johnson, verizon, big winners, nasdaq having the worst day of the monthment on the dow, a few others, but exxon as well. tyler, what's up? >> thank you very much, brian. welcome, everybody, to "power lunch," president trump wrapped up a big meeting with the nation's top manufacturing ceos down in washington at the white house. the ceos coming out giddy with excitement. let's get to the white house with the details and reaction. >> yeahings that's right. you heard ceos coming out publicly on television to talk about reactions here. very positive boosterish reaction from the ceos, but i want to read a text i got because also texting privately
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with folks, including one of the ceos in the meeting, and this ceo texted me and said, i asked, what specifics are coming from the meeting? he texted, that's for them to decide? they listened really well, great engagement with the president of the united states, jared, cohen, little, erts, so even in the private texts after the event, they are really singing praises of the white house. the ceos like being heard here today. let me play you sound from the president, though. this is the president welcoming all 24 ceos into the state dining room as they were gathered around laying out sort of what his perspective is here today. here's what he had to say. >> she's tough. but it worked out well, i think for everybody. i think i have to say this, marilyn, you got a lot of credit because what you did was the right thing. we appreciate it. cut her price, over $700 million, right? do you think hillary would have asked for -- oh, boy. i hope you -- i assume you
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wanted her to win. you're going to do great and make more planes. >> that's the president talking with marilyn of lockheed martin. they have been in intense negotiations over the fighter aircraft, all of that in the mix here today. the ceo of the company here to talk about broad policy issues but also some back and forth with the president over the cost of the airplanes that they are selling to the federal government. we also heard from kenneth frasier, ceo of merck, and this is what he said. >> it's clear the president is interested in lessening the tax burden on americans, including middle class americans, but interested in lifting the tax burden on companies that employ workers in the united states that are innovators, job creators, and ultimately creating more jobs in the united states. >> reporter: and that's what it's all about, creating jobs
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here in this country. this administration focused so much on jobs, jobs, jobs, now the tension here, tyler, is going to be when the president asked the ceos for something they don't want to give him. ceos do not wake up in the morning thinking i have to create jobs today and spend more money on employees today. they think about ways of cutting costs and maximizing profit. at some appointment, that tension comes into play, but so far today here at the white house, a lot of enthusiasm and a lot of enthusiastic ceos here. >> all right, thank you very much. on the north side of the white house. >> well, it seems all the president's been moving the markets today, treasury secretary sitting down with cnbc's becky quick. he talked taxes, trade, regulations, the rally, china, housing, the list goes on and on. >> our economic agenda, the number one issue is growth and the first most important thing that will impact growth is tax plan. we're committed to pass tax
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reform. it will be very significant. it's going to be focused on middle income tax cuts, simplification and making the business tax competitive with the rest of the world, which is a big problem and why companies are leaving and cash is sitting offshore, so that's really our focus, and we want to get this done but the august recess. we've been working closely with the leadership in the house and senate, and we'll work on a combined plan. >> you think we can get back to 3% gdp or better. how do we do that? >> first issue, as i mentioned, is tax reform. i think the other issue is going to be regulatory relief. we need to cut back regulations that have trprevented small and medium sized businesses from being the engine of growth in this country, and we're also focus focused, as you know, on dodd-frank, looking at that to ensure banks can lend. >> do you think we'd see 3% gdp by next year? >> i think it's going to take time to get there. i think it would be, you know, more towards the seeing the
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growth towards the year. by the time we pass tax reform, you see the impact on the economy and impact of regulation, it's going to take into next year to see an engine of growth. >> obviously, a lot of people are looking at this, the fed, and the cdo, and their growth projections are 1.8%. what are they missing? they don't see it? >> they are not missing anything. i think they are making projections based on the status q quo, and that's where the economy has been, actually lower than that under the obama administration. i think we're looking at significant economic changes. >> do you agree with the border adjustment tax, something that you think needs to be involved in tax reform? >> well, let me just say, i think that there is a consensus on the majority of where we are on tax reform. we're looking closely at the issues on the border adjusted tax, i spoke extensively with paul ryan and with chairman brady on this, and we're looking at it.
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we think there's very interesting aspects of it. there's concerns about it. i think one of the things, you know, we are all committed to do is make sure there is a combined plan that is a plan that is the administration's plan with the support of the house and the senate that were all working together on one plan that gets passed, and i think everybody's on the same page in doing that. >> you have said you expect interest rates to remain relatively low for some period of time. when we get to the growth that you're expecting of 3% or better, how quickly do you think interest rates will have to adjust to catch up with that? >> we're in an environment where we are at historically low interest rates. i think if you look at this on a historical basis, we'll probably have low interest rates for a long period of time. that doesn't mean that within that, there's not the context that interest rates can go up, and you've seen the feds signal that, so, again, i'm not going to speculate on what they're going to do, but my comments are
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really about where we are, not relative to just today, but where we are relative to where interest rates have been over a long period of time. >> all right, folks. a lot to cover, and to do it, bringing in our cnbc contributor. welcome. >> thank you. >> sarah, do the numbers work here? in other words, with a tax cut, about which we know relatively little and really not much more than we did yesterday, can he deliver a tax cut for the middle class under which the wealthy do not see taxes cut much, if at all, if rates go down, that would be offset by changes in deductions and other ways to make sure that the tax relief is not skewed to the top 1%. >> right. yeah. i do think the numbers work. one, the question is, of course, we got to see the plan, and there's a big assumption that in
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the hois, the plan has to be revenue neutral. that's been an operating philosophy for a long time, certainly through the obama years. question is, does the trump team put forward a revenue neutral plan or a plan that produces enough growth they make assumptions about the economy, and i believe these members of the house will follow president trump's lead on this. he's a strong voice in this. >> jared, do we know anymore today, really, than we did yesterday about the plan? i mean, details have been scarce here, i would say. >> there is no plan. i think it's really important to recognize that. they are working on a plan, but they don't have one yet. all we know is that they aspire to somehow achieve 3% growth. they are not going to get that through a tax plan.
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that linkage has been shown to just not be operative throughout history. what's holding back growth is low productivity and slower growth in labor force, and there's really -- as much as the secretary and others want to make it so, history has very little correlation between changes in the tax code and those kinds of metrics, and it's really important to recognize that they don't have a plan. sarah's right. you can't tell me the numbers add up until you have a plan. >> well, yeah, but in fairness, the president is going to have a plan very, very soon, and they've been working on this for a very long time, but -- the thing i don't agree with, jared, is you have to look at the trump vision in totality. the tax plan is going to be a huge part of the focus this year, clearly, but so is obamacare. so he's already cut regulation. there's going to be more in labor regulations, financial securities, and what we see the
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stock market in part is driven by optimism and enthusiasm, and when you take this in totality, yes, this country can achieve 3% growth or higher. >> so, again, i mean, i think that's really very, you know, kind of misguided in the following way. first of all, there is no plan to repeal and replace the aca just like there's no tax plan, in fact, today, you had john boehner, i don't know what he knows, but they will not be able to replace or repeal aca. you're assuming plans that don't exist, and when it comes to the aca, there's no evidence that the aca was a job killer, in fact, to the contrary, and it looked like it certainly helped jobs in the health care sector and did not hurt jobs elsewhere. >> you don't think 4% tax on people's investments hurts the economy? hurts job growth? i just said that's just not accurate. >> look at the job growth, about to raise interest rates because the labor market is too tight, so i just don't think those connections hold. >> treasury secretary was right
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pointing out that obamacare era regulations kept this economy from growing at full potential, and the president walked them back, and when produced, pass by august, will have a very important kick starting effort growing the economy to the point -- >> did you see the video of the bull running loose through the streets of new york city? >> i mean -- >> i kind of -- i mean this with all respect, i viewed d.c. as that bull because what happens is a lot of things go on, there's a lot of wow movements, people shouted, and it does not end well. do you think we're going to get tax reform talked about we get repeal and replace? people are committed to tax reform. i'm committed to being handsome.
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doesn't mean i'm going to get there. is it really going to happen? >> i think thats is endumb bent on the republican party led by donald trump -- >> who is not a republican, is he? >> over the course of the career, he had many policies that are not republican, but he is the leader of the republican party today and pushing a pro-growth tax plan, and i believe republicans in the house are beginning to follow him. >> do you think he's well liked by the republican leadership he needs to get this stuff done? >> he's an unconventional leader, no debate about that. >> do they like him? >> do they like him? personally, i don't know. i can't speak for them, but i believe that he is moving quickly, and they admire the fact he's actually getting things done. here's one thing that i would say about where we are. we're so used to nothing happening in washington because we've had, you know, the last years of the bush administration and the entirety of the obama administration, it was very difficult to get anything done. that may be the case. if this president leads and puts
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forward a plan that brings people together -- which he has to do -- he's not done it yet, but he can do it, i do believe this can get done. may take longer than august, but republicans have to -- >> let me steer back to the aca for just a minute. >> oh, sure, yeah. >> if i'm remembering correctly, the most of the projections i recall indicated the aca actually reduced federal expenditure on health care on narrowed deficits. am i right on that? >> you're right they narrowed the deficits, according to the scores by the congressional budget office. you reduce it, there's a wider budget deficit. it did not reduce cost of health care, but slowed the growth. that's actually really important, and, in fact, one of the reasons why our debt projections have improved is precisely because budget scores build that in. now, you know, again, the
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problem with repealing the aca is just has less to do with deficits and growth of health care costs, which i don't know that republicans care all that much about, but has to do with the fact that it gave insurance to over 20 million people and there's at least 20 senators who live in states that took the medicaid expansion, and guess what? they are telling their leadership not so fast. we don't -- we don't agree with the house that just wants to get rid of this, so what sara's talking about is republican faith based idea that progrowth raises it, and it will not, but this dysfunctional congress works with him, like, it's just not happening, now, perhaps it could. we don't know the future, but it's not happening, and the idea of getting to 2-3% growth by, you know, a tax plan that does not exist, and from deregulatory agenda that does not exist, you know, it's fairy dust.
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>> final word to sara. >> with respect to obamacare, you saw, you know, double digit, premium increases on american families for years. in fact, right before the election is one of the reasons president trump defeated hillary clinton. that has a real impact on the economy and american families. rolling that back will help them, it will help growth. >> all right. leaving it there. sarah, jared, thank you very much. >> thank you. >> got a news alert in the bond market, seven-year notes up for auction. rick, what's it look like? >> well, the grade i gave it was c-plus, charlie plus. you know, the plus, well, it was generous. they are just off to a pretty much average no matter how you slice it 28 billion seven-year notes for the week. yield at auction, 2.197. close to where the one issue market was trading, 2.49 good to cover a little below ten
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auction, 63.8 for indirect and 11.4 for direct. calls under. primary deals take 24.8%. c-plus. the market yawned after the seven year. rates pretty much unchanged, but that ten year below 2.40 is something to pay attention to. back yo but zbto you. >> thank you. two big stocks with boston in their name having a wicked bad day. plus, treasury secretary steven mnuchin, the trump administration is to thank for the rally. is he right? we'll debate it. what he didn't say that could speak volumes. we'll explain all of that coming up on "power lunch." the future of business in new york state is already in motion. companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce,
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i'm ricardo, a sales and service consultant here at the xfinity store in bellevue, washington. here at the store, we offer internet, tv, phone, customer service, home security. every situation is a little different.
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it could be about billing, simple questions like changing the phone number. sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. one of the great things about comcast, there's always room to move up. of course, it depends on you, how hard you work. ♪ obviously, the stock market rallied significantly since president trump took office, actually, the election and then when he took office. is that a report card? >> absolutely. it's a market to market business. >> treasury secretary saying that you can thank president trump for this record stock rally, so, is the president really in the driver's seat of the market? we've our chief investment
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officer and michael, president and manager of portfolio funds. interesting, on the flip side, will he take the blame if stocks turn down? that aside, i argued for a gop rally more than a trump rally because the pieces were aligned. what's your view? >> well, i agree. that's well said. the election was overwhelmingly for the republican party, controlling both houses of congress equally important to the administration, and i think, so far, everything he's done is an extremely pro-business, look at tillerson, sessions, mnuchin, prewitt for the epa. a deregulation eight years, unwinding that, and that's good for the market and business. >> why? connect the dots. deregulation sounds nice, why should that equal higher stock prices? >> well, theory is this, yellen had her foot down to the floor
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board on the accelerator, and at the same time, the administration with the brake all the way down as well, and so we've been eking out 1% growth. i think as we lessen regulations, that'll promote growth combined with what's aggressive monetary policy is going to lead to increased profitability, increased gdp, and, you know, we don't know for certain, but all those things sound good and look good, and it's going in the right direction, so i think the stock market sees that, obviously, and 10-15% rally or 11-12% rally. >> some people argue the stock market's gains are based much in part to the fundamentals at least seen, the improving balance sheets across corporate america, improving economy, improving global economies and fiscal stimulus is a kicker, a promise in the future upside, risk to the upside, if you will, later down the road. how are you seeing the gains that we've seen so far? >> i would agree with you, melissa. i mean, while i agree with everything steven said about the future and the potential
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benefits of all of the policies that are being discussed in the trump administration, right now, they still are a lot of hot air and, to some degree, they are discounting maybe how difficult it's going to be to get some of this through congress, so we have not seen anything, and at some point, the market's going to have to have a prove it to me moment where the policies come into effect, and then do drive expected results, but i think given that that's part of it, investors are forgetting that economic data has been improving. corporate profits have had a second great quarter. unemployment remains low. consumer spending is good. economic data points are strengthening. these fundamentals are providing some of the leg for the recent stock market run, and, in fact, provide a lot of support for stock prices here now. >> does the willingness to take that leap of faith, believe fiscal stimulus comes down the road, does that grow as we continue to see the ceos come out of the white house speaking glowingly? not only do they say meetings were productive, but said it's
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the most pro-growth president we've seen in history, practically. >> yeah. this is a lot of positive momentum, and as long as that continues, i think it does propel that expectation going forward. again, though, you're going to come to, in my view, probably have 12-18 months here to execute something before you get into the midterm, and if the trump administration loses that momentum, if they get bogged down in -- too many details that do not get anything done, i'm a fan of doing smaller bills versus big grand bargains because i think they are more efficiently done, and so there is a risk they try to bite off too much and can't get it all done in time or the effects are not felt, and then you have a muddled midterm in 2018. there's a time line on this optimism that we're in now. >> $50,000 of inkrmtal money to put to work over six months, how would you apportion it as between large caps, small cap, mid cap, u.s. equities,
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internationals, fixed income? >> well, i think when a currency perspective, i stay in the united states. i would -- i really like the dollar here. i think we're still king dollar. look for value, small cap or large cap, low earnings, multiple, a nice dividend yield, low earned, a solid balance sheet. whatever the market cap company, does not matter to me. >> all right. thanks very much. steve, mike, appreciate your time today, both from san francisco. looks awfully nice. >> the beantown basic stocks, a wicked bad day. what's driving them lower. yeah, with liberty mutual all i needed to do to get an estimate was snap a photo of the damage and voila! voila! (sigh) i wish my insurance company had that... wait! hold it... hold it boys... there's supposed to be three of you... where's your brother? where's your brother? hey, where's charlie?
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it's everything you need it to be... ...and more. lease the e300 for $549 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. welcome back to "power lunch," we are watching gold up almost $20 today crossing 1250, and just off their session highs. a couple reasons gold's moving higher today, first, would be the notion that the market has right now, that the fed may be a little bit more dovish than expected, at least not hike as quickly as expected, and there's a weaker dollar today. some traders say we could see the trade go all the way up to 1300. back to you. >> thank you very much. a bit of a bad day for beantown stocks, boston scientific and boston beer, meg draws scientific, and you draw the beer here. you have the details.
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meg, you first. >> thank you very much. boston scientific is down, recalling a heart valve replacement because of a problem with the delivery system. the lotus valve system is pulled from europe until later this year and application for approval in the u.s., not yet on the market, back four to six months now as well. it's a big market with competition. replacing hard valves instead of open heart surgery. it was $2.5 billion in 2016 and expected to grow to $5.5 billion in 2021. now there's edwards and medtronic, slightly up, and the system is seep as an important driver of boston's growth. boston stock recovered from the initial lows premarket today as analysts emphasize the company is not changing guidance for 2017, a 5-7% operational growth, however, the company said it's lowering revenue guidance in the instructional heart unit by $50 billion. the news comes after a similar
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issue with a version of the device. they argue the fact the company found a solution to that problem bodes well to the approach to this one. >> when a company issues a recall on a heart valve, what happens? >> so they are -- >> to me, if i got one. >> if you got one already, the company says you are okay, the problem is in the delivery of the actually procedure of putting the device in. if you got one in, they say you are fine. what nay are taking off the market right now is anything that has not yet been implanted in patients. >> because the fix or problem has to do with how it's installed? not about how it functions? >> that's what they are telling us. simply, analysts found a fix to the previous problem, but they want to go through an extra manufacturing check to ensure they are good before bringing them back. >> all right, thank you. >> now to landon, boston beer having a rough day. >> switching gears here, shares of boston beer company hammered, down 5% after reporting a disappointing fourth quarter result. sales are down thanks to
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weakness in sam adams core brand citing increased competition in the craft beer market also saying it sees weakness in cider category. as far as guidance go, they project full earnings to be between $4.20 and $6.20. a large range, but attributed to uncertainty. the one blind spot, twisted tea, but not enough to offset. beer blues today. >> core brand buzz kill. sam adams. >> i like how you began with sam adams getting hammered. i thought that was good. >> getting hammered. >> thank you. watching "power lunch" too much. >> bad pun. >> watching you too much. let's get a cnbc news update. >> from one brewer to another brewer -- that's how the transition goes. just getting you through the
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day. iraq special forces begun an assault on isis in western mo moslul, multiple vehicles seen advancing on that city. u.n. brokered syria peace talks resume in geneva ten months after falling apart in the war torn country. u.n. envoys first meeting with the syria government delegation. the water has begun to recede in flood ravaged san jose, california. oh, so many thousands of people going back to their homes after being evacuated, and they just find loads of mud and water in their homes. heavy rain, of course, saturated what was once a drought stricken region. a siberian tiger knocked a drone out of the sky. the animals are chasing the drone, and then once successfully jumps up and knocked it down. then -- look at this. the tigers immediately gather around it tearing into it, even
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further until smoke releases, that's enough to go, okay, we don't know what this is. backing off for now. can you believe that? cnbc news update at this hour. brian? you love it. >> i do love it because any time nature can conquer technology, i just think that's just a great metaphor for so many things. >> really like all the time because we have not figure out a way to control weather yet. look at that. they love it. it's like meat. they think it's dinner. until smoke comes out. >> could be robotic tigers, who knows in this day in age. you are the champagne of anchors. a border tax could decimate retail? does retail already have a bigger problem than that monster? what's really worrying retails next.
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retail under pressure on earnings news, more on that in a moment, but let's look at the
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clouds over the sectorment tax reformat. this is what was said about the possibility of a border adjustment tax. >> i think there is a consensus of majority of where we are on tax reform. we're looking closely at the border adjustment tax, i spoke extensively with paul ryan and brady on this, and we're looking at it thinking there's interesting aspects of it and concerns about it, but i think one of the things, you know, we are all committed to do is make sure there is a combined plan that is a plan that is the administration's plan with the support of the house and the senate that we're all working together on one plan that gets passed. >> joining us now, paul trusle, retail analyst at deutsche bank, and business, and cnbc contributor, janua. good have you with us. is a border tax sort of -- would it make some stocks uninvestble?
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>> yes, they are making the argument already given woes seen from the mall traffic standpoint with fundamentals absolutely disheartening this past holiday season, but to the point, border tax would negatively impact the broader retail space, and i think it would be not only bad for retail, but the consumer. >> have you gone through the list, investor calls, paul, run me through coverage universe. you cover twenty-something stocks here, which become a no touch if there's a border adjustment tax? >> look, i think that that conversation really lies on who does and who does not have pricing power. right? because the assumption is the retailer's at least going to attempt to pass it on to the consumer, and so on one side, you have companies like nike that are perceived to have
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pricing power to be helpful for foot looker as well, but when it comes to the department stores and specialty retailers like gap who reports later today, the presumption there is that those guys will have much more difficulty passing that along. >> on that point, if you take a look at the larger retailers, traditionally forced the suppliers to eat costs, names like walmart, do they sit in the driver's seat, opposed to them having to digest it as the consumer? >> if you're walmart and you get a cost through, you push it back on everybody else. they'll try to do the same thing as well as big department stores. they had good luck doing that in the past, but this is such a big change. this basically, on the average retailer, cuts probability in half. it's really hard to make that up by pressing your suppliers. that's not like a penny or two here or there, but raise prices averagely 10% to get back to
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even, so if you can raise it 10%, i suppose that, great pricing power, this works. if you do not have pricing power, you lose a lot of business or profitability or both. >> you know, the politicians, and to be fair, media, have a history, liz, of sometimes going too far in one direction or another. we're doomed! everything's terrible! we do this, we're all dead. imports did not start coming into the country that much until about 15-20 years ago. somehow for the majority of american history, we survived without cheaply made shirts and handbags. is there any part of the story where stocks are down 20, 30, 40% in the last three to six months that's overstated to the downside? >> down 20-40% because of performance, not the tax. back to something jan said which is, you know, those who have pricing power, historically department stores have it, but they do not anymore. that's no longer the place where people want to sell, and so i
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think that becomes a really important thing, and, you know, the consumer -- >> what's changed from 20 years ago, importing little from china to now? why doomed now, but not in 1996, which, as i remember, everybody remembers the '90s as an amazing time. >> consumption habits changed. >> addicted to cheap crap. >> kind of. we don't need apparel or shoes, but have what we need. >> a great discussion, but stay here, when we return, rex tillerson, secretary of state speaking in mexico city now. >> as i shared with others since my arrival, delighted to be in mexico city, particularly pleased that secretary kelly traveled with me so we can have very productive discussions. the issues are the great importance. as i shared with others, i am innative texan, born in texas, spent almost all my life living in texas, so mexico, all my
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life, has been a very close neighbor. i have a great affection for the mexican people. so i'm really pleased to be here. we have just commongrounded productive meetings last night and this morning with our counterparts, secretary of government rosario, national defense, puegos, secretary of the navy, and secretary of finance and public credit. during the course of our meetings, we discussed the breath of challenges and opportunities in the u.s.-mexico relationship, although our two nations share a long history, our vision was forward looking, focusing on common interests that would advance security and economic well being. in our meetings, we jointly acknowledged that in a
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relationship filled with vibrant colors, two strong sovereign countries from time to time will have differences. we listened closely and carefully to each other as we respectfully and patiently raised our respective concerns. our conversations covered the full range of bilateral issues. we reaffirmed close cooperation on economic and commercial issues such as energy, legal migration, security, educational exchanges, and people-to-people ties. we agree that our two countries should seize the opportunity to modernize and strengthen our trade and energy relationship. we also reiterated our joint commitment to maintaining law and order along our shared border by stopping potential terrorists and dismantling the transnational criminal networks moving drugs and people into the united states. similarly, we underscored importance of stopping the illegal firearms and bulk cash that's originating in the united
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states, and flowing into mexico. there's no mistaking that the rule of law matters along both sides of our border. we recognize the existing u.s.-mexican cooperation to curtail irregular migration, boe both by securing mexico's southern border and securing efforts of guatemala, hundred durs, and el salvador. we have to stimulate economic activity in the region. on the issue, we discussed the importance of fair treatment of all of those in this transit. finally, we universally agreed on strengthening institutional microphones. meetings were continuation of a purposeful and productivity exchange that is setting our two countries down a pathway of security and long term prosperity. we look forward to further
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meetings, perhaps in washington, d.c., to continue to progress our importance discussions on these issues. both secretary kelly and i look forward to and are honored by the opportunity to meet with the president. thavs the secretary of state speaking in mexico, meeting with his mexican counterpart. we have a close relationship. we are going to work together. tillerson highlighting his past, calling texas, quote, a close neighbor. there's been tension. understatement. they are there to mend some of the wounds. >> there's two overriding issues here. one is immigration. border security, the other is trade and both of them, we are sort of at large with. >> with our mexican neighbors.
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>> we will be monitoring headlines in english and spanish. anything market moving, newsworthy you have to know about, folk, we'll bring to you. meantime, we're going to find opportunity. it's called "street talk," melissa's back after a couple day vacation on a beach somewhere. >> i wish. >> kidding, she was deathly ill. that's "street talk next. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.
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time for "street talk" on the stocks, kicking it off. nomura, reduced from a buy, cutting price target from 90 to 100. potential negative impacts to the multiple, saying investors should take profits and buy intel. >> most loved stock in the world for 12 months. >> it's been working. >> falling out of love, america. home depot, morgan stanley loves the stock, upgraded.
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they also note home depot has stores in areas recovering more than lowe's so more upside. analysts say the valuation is fair. boost target 1656% upside. we are talking to them for a long time. and morgan is getting on the wagon. >> after fresh record highs. >> fresh. >> fresh. third stock, high crush partners. >> rocks? >> what? >> throw rocks. >> and sand. >> sand. >> getting more bullish on high crush, a fracking sand play. increasing target from $4 to 28, and lower than expected tonnage, according to the analyst, issues temporary. seeing emts and service companies, activity increases. >> shortage of sand could be a real problem. >> yeah. >> four stock, up your alley because of tesla.
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this is your smallish cap call of the day. baton rouge -- >> had the ceo on "power lunch". >> huge lithium play. outperforming 114 dollar target, about 20% upside. recent run, investors may be wondering if this is the 8th inning for lithium, analysts say know. second or third given the growth rebust expectations, and supply of lithium. invested in solar growth, lower margin businesses lately, cash flow looks strong. positive comments from rbc capital markets. all right. street talk is done for the day. let's get a market flash. >> posivity, but look at technology stocks, guys, because the sector is on pace now to turn the first negative day in 16 days. that's a record setting wind streak so far. today includes micron, so chips are a factor here.
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the sosx holders index, both down by a percent or so so far, but, still, tyler, it's been a good run for tech this year's best performing s&p 500. back over to you. >> thank you very much. >> why you drowning in e-mails is good news. we'll explain straight ahead.
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i'm ricardo, a sales and service consultant here at the xfinity store in bellevue, washington. here at the store, we offer internet, tv, phone, customer service, home security. every situation is a little different. it could be about billing, simple questions like changing the phone number. sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. one of the great things about comcast, there's always room to move up. of course, it depends on you, how hard you work. ♪
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out with the inbox, a growing cry in many outboxes across the country, presenting big opportunity for some startups. let's get to cnbc with more. hi, julia. >> an estimated 225 billion e-mails are sent or received every day keeping workers from opportunity. they are leading antie-mail crusade with users double from 2015 to last year. there's a range of rivals. the trend went public a year ago with video chat and screen sharing and other tools to focus on document collaboration and
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there's zoom for video conferencing. they are trying to seize the opportunity. the district of sales force's chatter and spark, facebook launched workplace last year, the first pay service and one for the enterprise, and microsoft as an upcoming team tool about to launch hoping to engage the next generation of workers. >> millennials are expecting a very different experience than people did earlier, so i think there's a very different and much more productive way that everyone's going to be interacting, and there's a lot of experimentation going on too. >> they are tackling performance reviews, a company called reflective and culture amp author realtime feedback for employees' performances. despicembespite tech tools, the workplace is traditional. 75% of coworkers' communications happens over e-mail, phone, and text with less than a fifth of people using document collaboration tools according to
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tech analysis research. guys, back to you. >> julia, thank you very much. >> 400 e-mails a day? i would say 20 of them are really important. >> e-mail is the technological equivalent of led gasoline. no show about the kardashians. outlived usefulness completely. needs to go away. >> replace with? >> well, i know julie talked about slack, which i've seen, looks cool, but they hit you with more information in different ways. e-ma e-mail's problem is just fails to reach out -- it's a phone call to the house, pick it up, it's not for you, and you hang up, 300 times a day, nothing's destroyed productivity more than e-mail. >> while that was on, i went through my deleted, which had, like, 7500, and i just went, and i got rid of 3,000 of them. >> i rediscovered the phone. shocking how much gets done in a one minute phone call opposed to 700 reply all e-mails where
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everyone goes back and forth. >> i hate a reply all with a list of 700 people. not everybody needs to hit reply all. not everybody. >> i tried to unsubscribe from the team e-mail many times, but it does not let me. >> we need now too much. >> robots taking over the workplace, but bathrooms too? america's richest zip code, that story's ahead. and president trump pushes for more manufacturing in the u.s., does not necessarily mean michigan. the other states in the growing market for other productions. second hour of "power lunch" starts soon.
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hi, welcome to the second hour of "power lunch," i'm brian, melissa and tyler with us today. michelle is off. two hours until closing bell. this is what we are watching this hour. president, again, meeting with business leaders in efforts to keep manufacturing and manufacturing jobs right here in america. one calling in administration the most business friendly in 200 years. one wonders how he kneows that.
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the free market rally is a report card for the president's policies, and if that's true, the president giving himself a win today, dow higher, set for the tenth straight record close. >> check out the movers, today. two analyst downgrades today, and there you see the stock, off ten points or almost 10% at $100.28. jack in the box whacked after missing on sales and earnings. hurt by sales dropping at the qdoba chain, and hormel, the company behind spam and other treats, missed earnings, saying the jenni-o turkey business is hurt by low bird prices. >> treasury secretary had a lot to say about the markets specifically including the big rally is a report card for the president. we are live in washington with
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the angle. >> reporter: it's not often there's a cabinet member that moves the market with their comments, but it's rarer that one envokes market as a yardstick of sorts, a bode of confidence in the administration, but that's what treasury secretary steven mnuchin did today. >> you can see the stock market's up. the dollar's up. you know, there's a lot of confidence in the trump administration, and in the desire to invest in the u.s. this is a very competitive place to do business. we got great companies. you see that reflected in the markets. >> you view that as a report card? >> absolutely. absolutely. i mean, this is a market to market business. >> somewhat curious on the term market to market, a term that gained notoriety in the financial crisis as companies chose their own value for assets, but it means something value will change over time despite that, though, the administration is using the market however risky and unpredictable that is to measure its own progress. he said that some of that progress on various parts of
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treasury could come soon with fast setting how-to reform big government, and how china, despite in the face of what it's going and has been doing for the last few year, and treasury will be actually issuing a longer data debt, 50 or 100-year treasury bond. that's an issue that seems to be seen every decade or so, but, recently with interest rates as low as they have been, half a dozen countries pursued 100 year bonds with rates 4-6%, and more than a dozen of the 50 year bonds in five years, and the united kingdom, a couple days ago, guys, issued one that carries an interest rate o of .125%. it immediately went negative because people bought it left and right. now, one interesting result of the comments, you did see the bond yield curve in the u.s. steepening slightly, just a couple points on the five year and 30 year, but the dollar,
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melissa, softened a bit because even though he wants tax reform by that july 28th date when congress goes on their august rece recess, he said the growth from that wouldn't come until a couple years from now. >> all right, ckayla thank you. a look at the markets, rick in chicago, bob at the new york stock exchange. bob, we begin with you. what are you seeing traders focused on most? >> well, melissa, the market had problems with mr. mnuchin's comments here. s&p opened at a new high, but came in below and opened negative territory late in the morning. most importantly, bank stocks were the weakest sectors throughout the day and still are. traders are focusing on the comments that he wanted tax reform to pass by the august recess, which many doubt could happen, and there seems to be a sense that tax reform takes longer than anticipated, growth towards the end of next year, a time period further out than anticipated and concern that his
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emphasis on middle income tax cuts mean the corporate tax cuts are not as great as anticipated. more extraordinary, he acknowledgement that the stock market rally has been a report card on the trump administration. this is an extraordinary claim for a treasury secretary, which historically stay neutral on markets, particularly something that affects stocks and the dollar. from here, it's not entirely true, by the way, that comment, certainly true that the trump trade of tax cuts, infrastructure spending, and regulation reduction power markets, but the trade started last summer, that's been a big factor in the global rally as well. it's also very dangerous game to play if you live by the stock market, you know, you die by the target. by this measure, he might be bracing barack obama considering the s&p moved 200% during his time in office. or, perhaps, we should be praising yellen and ber nan ke begin credit since 2009. extraordinary claim. guys, back to you.
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>> it is, bob. a ten-year chart of the dow, the dow up since the financial crisis, took a yearlong pause for the election cycle, looks like it's ju resumed the uptren. the treasury secretary said they are seriously considers 100 year bonds. go down to rick santelli. what do the bond markets think of this? a good idea or paying off your 15 year mortgage with a 30 year mortgage. you're still in debt. >> you know, brianings you bring up a great point. i used that analogy today. a longer term debt may affect both benefits just more than a rate mortgage, to get the adjust mblees in the fixed repor, what's servicing the debt? if five, ten years, if you lock in 4%, and that's 6-7%, that becomes higher than 4%, then all the sudden, you look golden.
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there's a trade, but the heard the notion forever down here. yes, it's a good idea. why? good paper is collateral, there's a shortage of it because central banks hold the best sovereign securities. think about mutual funds, insurance companies, but it is not a panacea. it's still debt. so one thing i want to point out, though, many said, oh, my god, the curve steepened today. that's a hard conclusion to draw. i have proof. a 40-year bond in the u.k., hst yielding an active trade at 173. the chart, the 30-year is 188. there's a price premium on the 40 year, probably due to aspects of liability and asset matching at a time where long term paper is hard to come by. it's a good idea as long as there's a debt plan to go along with it. >> rick, thank you very much, rick santelli in chicago. talking about working with global counterparts, so how does
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the rest of the world view us? inside now from cnbc contributor, fred kemp, ceo of the atlantic counsel. >> great to be here. >> the administration spent a lot of time in recent days sending people over to europe. mostly talking about security and alliances, less about the economic ties. how does europe view this new administration? >> well, i was in munich last week, five cabinet level officials, the most in europe at the same time, all there to reassure europeans, and they were not totally reassured because despite the good words from president pence about nato, defense secretary, they wanted to hear from the president. now you hear mnuchin, that was a great interview, but it fits the pattern, he's sending reasuring messages to the international financial partners, i'm talking to you, saying, look, currency
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manipulation business, president trump said on the first di ay o presidency, he was going to declare -- 45% tariffs, did not happen, what we're seeing is a rounding of the edges by his cabinet members issue and seeing a softening of the stance on china. does not mean he's not going to go after china, he is, but in a different way, and i think he'll go potentially after chinese investments in the united states. >> how. >> the committee on foreign investment of the u.s., and this is started in 1975 as a way to constrain investments in the u.s., and then japan in the 1980s, and it was always national security connected. you've seen calls from senator schumer to add an economic factor to the measurement, not just national security. there's senator cof texas pushig on stocks, anti-china republicans and anti-trade
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democrats now saying let's take a new look at investments, and the argument that trump makes is we can't buy things the way we want to. we're having trouble with market access of china, and the same time, the chinese bought 45 pnltd 6 billion of american assets, american businesses last year, three times more than the year before. >> in terms of the rounding of the edges, does that mean perception around the world of the trump administration is more favorable because they believe that the cabinet members will soften trump's once maybe sharp stances on certain issues now, or do they not believe that still? >> there's certainly reassurance. no doubt that when pence, secretary mattis with his capabilities and knowledge and relationships in the world says, count on us, we're not going to abandon nato, but you have to pay up. you have to meet your obligations. that's a softer way of saying what president trump said, which is, if you don't meet your obligations, we're actually not going to defend you under article 5 of nato. what they want to hear is they
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want to have president trump tweet in a way that reenforces what was heard from the cabinet secretaries so the ideas are aligning. they are still questioning who in the end is actually going to be the person they can count on if they really want to -- >> good cop, bad cop going on there? >> i -- i think what you're seeing is maturing of the relationship. i don't think -- you can't expect president trump to be anything other than the popular he is and elected to be and disrupter, but the other people he's hired have to do the business. >> tillerson, mnuchin, some others, they sound like experienced politicians, and i mean that as a compliment, but i do, and who do you think is the real operating power, the real u.s. government right now? sort of sharp-elbowed, tweeting president, more measured individuals that are rolled out. who is the real government?
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>> two things from my observation. anyone saying the president of the united states is the mannequin of anybody, i think the president is his own person. that said, i think he relies on steve, and bannon is smart, well-read, and defense secretary mattis is growing in stature in the white house because he delivers, because the president respects him and listens, hears him, and delivers what he can say. so i think what you're seeing is jockeying for power, but, particularly, with the mcmaster naming national security counsel advis adviser, that's a move from chaos to order from general flynn to mcmaster, and i'm hoping that, wishful thinking, but hoping that's the direction we're going. >> in no way do i defend russia or record on human rights, but that said, this is the topic in the national media, talking about russia. is your point of view that maybe some of this sort of russian
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affection -- i don't know how else to describe it -- is done to enlist another tough guy against china? sort of put russia literally between the u.s. and russia, and you can't unless russia's you know side. >> from those who have talked to president trump about these issue, i do believe that's the president's approach, and i think his belief. i think because of everything that's happened with the russians in the last couple weeks, he'll have trouble executing that with the opposition from congress. you also see the markets. the markets were up 25%, russian markets, from election day to january 27th, and they've been down 10-20% since then. markets are feeling the easing of sanctions they expected, the better relationship with russia and the u.s. may be push off a little bit in the future, simply, that does not mean that trump doesn't want to do it if he could. >> well, got to leave it there. thanks. see you again soon. appreciate it. >> thank you. all right, coming up next on
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"power lunch," next hour of "power lunch," the white house meets with manufacturing ceos. what can they do to create jobs in america? that's the question the president's asking of them and the signature you're about to see on your money, what's it say about the man writing it? phil lebeau is looking at auto production, phil? >> reporter: do we export vehicles from the u.s.? only imports, right? wrong. we export in this country, and it's growing. need proof? check out the bmw suvs i'm in the middle of here in charleston, south carolina. the u.s. auto export business, when "power lunch" returns. created, t sts as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average?
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so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.
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i'm ricardo, a sales and service consultant here at the xfinity store in bellevue, washington. here at the store, we offer internet, tv, phone, customer service, home security. every situation is a little different. it could be about billing, simple questions like changing the phone number. sometimes, they want to upgrade, downgrade, but at the end of the day, you want to take care of the customer. one of the great things about comcast, there's always room to move up. of course, it depends on you, how hard you work. ♪
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ceo manufacturing companies meeting with president trump today and emerging from the white house, sounding positively giddy, or as giddy as ceos can get. eamon is always giddy. >> reporter: that's right, tyler. the white house says today of the 24 ceos who were here today, they employ nearly 2 million people, they represent nearly 1 trillion in market value, and they have got about a trillion dollars in sales as well. one of those ceos on the way out of the meeting talked about being giddy told me privately that the president asked each of the ceos here to present ten specific regulations they'd like to see cut by the administration. that's going to set off a feeding frenzy among companies who have a long list of things
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they'd like to see cut by this administration over the next year or so. then you saw some of this sparring back and forth between the president and some of the different ceos, each of which seem to be inviting the president to look at their plant. here's one of the moments. >> longhi, thank you for the opportunity. >> doing pipelines, now, you know that, right? you're in the pipeline business because we approved, as you know, the keystone pipeline and dakota, but they have to buy meaning, steel, so u.s. steel, but steel made in this country, and pipelines made in this country. >> 100%, mr. president. by the way, when you come drive trucks, trucks come up, minnesota, our mines, you'll see them running up there. >> i'll do it. i'll be out there. >> andrew liveris talked about the president's priorities in terms of legislation and the order we might see legislation come in. this is what he has to say.
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>> my whole sense of the administration in 30 days of working with him is urgency. urgency on the business side. they really want to get the barriers out of the way, and i think, you know, if it goes much beyond the fall, i'd be staggered. i think the repeal of aca's probably a higher priority, but tax reform, right up there. >> reporter: tyler, that matches with what we heard from the president of the united states himself. health care coming first, early to mid-march, and then tax reform after that, that's a big ask of any administration in a normal year, and playly in washington, this is not a normal year. >> all right, thank you very much. >> reporter: you bet. >> not a normal year for anything, i suspect. president trump pushing manufacturing to be done in the u.s. you heard that before, but what about cars? because we think michigan, right, ohio, what about south carolina? they make planes there, but it's a growing market for auto production. phil lebeau is in the port of charleston, based on your last hit with boeing, charleston
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looks to become the manufacturing capital of america. >> south carolina and the southeast certainly have seen more manufacturing, brian, i want to give perspective on how many vehicles are exported here at the port of charleston. i'm in a sea of bmws, and to give you perspective, i'm surrounded by 2800 bmws built up in spartanburg. we can't show those waiting to be shipped out, some going to china. there's probably another thousand over there, a a couple thousand parked over here, and, again, they'll be shipped out in the next day or so as they are loaded on to a ship and then heading off to china or other destinations. the port of charleston exports 70% of the bmbs built here in the united states, and they will be the export harbor for volvos when the volvo scarouth carolin plant is built in the next year and a half. in terms of production, it is the largest bmw plant in the
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world, 411,000 suvs built last year there. 2 276,000 exported. what's the impact if there's a border tax in place, you know, where you taxed on what's exports versus a benefit. they would see a 1% hit to the u.s. earnings, mercedes with a plant in alabama takes a 24% hit to its u.s. earnings, and vw takes a hit of 311%, primarily because it does not really export very much from its plant in chattanooga, and vw's business in the u.s. is not terribly large. the bottom line is this, guys, when you look at exports, vehicle exports, they are growing, about 2 million vehicles were exported from the u.s. last year, and this is one reason why. the bmw sees greater demand for its suvs world wide, built here in south carolina and exported from this port. >> all right, phil, thank you
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very much. phil lebeau in south carolina. next, the front lines of america's manufacturing force, the plastic maker joining us." power lunch" will be right back. but what if you could turn things around? what if you could love your numbers? discover once-daily invokana®. it's the #1 prescribed sglt2 inhibitor that works to lower a1c. a pill taken just once in the morning, invokana® is used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. in fact, it's been proven to be more effective at lowering a1c than januvia. invokana® works around the clock by reducing the amount of sugar allowed back into the body, and sending some sugar out through the process of urination. and while it's not for lowering systolic blood pressure or weight loss, it may help you with both. invokana® can cause important side effects, including dehydration, which may cause you to feel dizzy,
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heading to the front lines of america manufacturing. this company spun off from dow chemical six years ago, public in 2014, and up 245% since then. chris, the ceo, joining us now, great to have you with us. >> nice to be here. >> as we mentioned, your company spun out from dow chemical, and the ceo of dow chemical believes it's the most pro-business administration since the founding fathers. would you agree or is the jury out for you? >> well, first of all, we reported earnings today, a record year last year, both in eps, cash flow, we had a great run, and we gave guidance this year that's very positive, so a comment made earlier about ceos being giddy, i don't know that we're giddy, but feeling good about it. i don't go back to the founding fathers, so i can't say, but, clearly, there's a -- >> how did he know that issue the monroe administration was great for business. polk.
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for your business, two questions. one is, which is more important to you, regulatory relief or tax relief, number one, and the question there in the white house today, send me a list of ten regulations you want repealed. what's one you want repealed? >> we're 25% sales in the u.s. the rest is outside the u.s. the regulatory challenge is outside the u.s. are often greater than u.s. first of all, and i would probably have to say tax for us. we're -- we're a tax paying corporation. about half taxes paid in u.s., although sales are 75% out of the u.s. >> what's the tax rate? >> 22%. we're a real taxpayer, and that's low because we have operations in europe. >> so what u.s. regulation would do the most to unleash your business? >> well, look, i think the epa, for example, has been, you know, generally positive for the chemical industry, but
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overtimes, overreaching, and i think for chemical industries, the epa, looking closely at what it does and benefits of chemistry and chemicals in general and perhaps being a little bit less regulatory oriented on manufacturing sites and facilities -- >> because 100 years ago companies in philadelphia were dumping toxic chemicals into the river. we're not going to do that anymore. >> absolutely. >> you guys are not a household name, but e petmy of a modern global company. phil just showed us bmws, you guys supply raw materials that go into some of the plastics in those cars. you're 75% outside the united states. you source locally. you put it into foreign cars then ship out of the united states, but built here. >> yeah. >> if you could get the president in a room for ten minutes, what would you tell him? what -- what are you most worry about the administration screwing up? >> well, look, first of all, i think the comments made earlier
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today by the administration that, particularly out of treasury, were very krub constructive. the debt in the country is the number one problem. that's my view. i think if i were to focus on one thing, it's that. tax reform and debt reduction are the two most important things for the president to focus on, and they are focusing on that. >> jobs, jobs, jobs, that's what we talk about, right, you're a manufacturing -- anything the government can do that would actually recreate more manufacturing jobs in the united states? >> i think there is. of course, tax reform and other regulatory relief would do that. i think that's a positive. the chemical industry employees 28,000 people in the u.s. and growing. our small company up 5% in four years in the u.s., so we're growing jobs, the chemical industry is growing jobs in the u.s., independent of whatever positive effects come from the reforms. the chemical industry is doing its part to grow jobs. the reason is almost 95% of what
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the chemical industry does goes into something that's manufactured. so anything that can drive manufacturing, drives chemicals up. >> when i asked the first question, you pivoted back to the fact you're seeing great growth here in the u.s. and around the world. does that mean the gains seen are based on gains that we were seeing in the global economy or optimi optimism, how much of the on the niche ceos have is what's happening versus expectations. >> great question. the stock's up 17% year to date, 25% since i was here awhile ago, and some expectations -- >> you just keep coming back. it's a good place for you. the stock goes up. >> brian said he'd have me back, but only because stock's up 25%, but, in any case, yes, we are seeing both. 25% real, 75% on the expectation. >> some of the buying you're seeing is because expectations,
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the fiscal stimulus kicks in. >> absolutely. >> better growth. >> absolutely. i think it will. it's happening already. >> chris, maung. >> thank you. >> come back any time. >> past returns no guarantee of future performance. we'll have you on a third time. thank you. oil market closing for the day, we are at the commodities, desk. >> good afternoon, tyler. oil closed higher today, 45.50, but off session highs, we got to 54.94, not over the $55 mark. the inventory report this morning, a build, but it was a small build. we paired some of the gains a little bit, but at the same time, i have to caution you and say dig deep into that report you'd find two things, see the fact that u.s. exports are increasing and u.s. production went over 9 million barrels a day. that's the first time we've seen that in over a year since april of 2016, and that's a very key fact because at this point it seems as opec continues to keep in line with cuts to u.s.
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producers, the russians, making up for some of that short fall, and that's what the market is worried about. there's disparity now, going to $70 a barrel, others say we could see under $40 again. back to you. >> all right, we stay on the oil theme. thank you very much. maybe the most interesting story around oil right now is not that prices ever recovered back to the '50s, but that america's exporting more oil every month. a lot of oil. let's bring in kyle cooper, ion energy group consultant. good to see you. >> thank you very much. >> prices recovered. that's nice. what shocked me is some of the data put out today or yesterday showing that americans now exporting 1.2 million barrels of oil a day. is that going to mitigate the increase in production that we have seen and keep prices afloat a bit? >> that's what the bulls hope for. certainly, that's a dramatic change from, obviously, years ago when there was no restriction on crude imports, so that's why we saw last week
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above a million, and this week, a new record of 1.2 million, offsetting those bills we've seen throughout 2017. this is the first bullish report bulls have had in to 17. the previous ones were a disaster. >> keep adding more to inventory, more to inventories. some suggested the levels we had on many times, said, probably a seasonal thing. >> in terms of the -- >> big build. >> true to a certain extent, but looking back against last year and five year average, since late last year, we posted significantly against both last year and the five year average. this is becoming certainly a concern to the bulls and those who have, and anticipated the tightening. this week, we saw the tightening. this goes forward, certainly, there could be a fundamental justificatio justification, and inventory justification for the price levels seen. >> what is the band for the price of u.s. crude this year, and where does it spend most of
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its time? >> well, actually, i think there's a lot of conflicting factors. as jackie mentioned, u.s. crude oil production jumped up 9 million barrels for the first time since april 1st, 2016. increase of 600,000 barrels from the recent troughs, most of the quarter companies, reporting, still suggesting first quarter in the bounce of this year sees increases. that's to what opec's done. look at others beginning to recover, there's a tremendous amount of capacity disrupted because of chaos, but they are getting their act together a little bit. it's a balancing mechanism between u.s. oil production, rebounds in libya, iran wanting to put out more, and then what saudi arabia and the rest of opec have done in january, which, to those of us who have been in the market awhile, really is surprising. typically, opec did not fair that great in compliance in
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their agreements. they've done well this january. >> so where -- what -- come back to that, what is the ban? what's the price? >> honestly, we're stuck in the upper 50s. right now, it's a really big important point for the bulls. there's already tremendous amount of speculation. there's already tremendous amount of people who have indeed purchases the gas that's ready in terms of seeing that, and anticipation of the inventories tightening up. i think we're going to be stuck here. if we can't go higher, we test out of the 50s, low 50s, break that, and you got further do downside, a $5 ban where we are now. >> all right, kyle, thanks. appreciate it. kyle cooper. thank you. >> thank you. all right. stocks you know. big names. making big moves in today, although the market's not moving much, there are individual stocks that are. we'll have those moves and news behind them coming up, and a bit later on, we are headed to america's most expensive zip
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code. this is real estate at its best. a multimillion dollar mansion with a super high-tech toilet adjusting to your tush. that is amazing. look at this. i want that. "power lunch" will be right back. t, not rattled... at all! no. sir, sir. what went right? everything. we have a brief statement on this non-breach. we're happy to report there's nothing to report. my dad's company wasn't hacked today. cool.
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here's your cnbc updates this hour. former michigan state and olympic gym nas ticks doctor aryaned on 22 counts of sexual assaults. appeared in court shackled, facing 80 alleged assaults in this case. explosion in a market in pakistan killed eight and injured 20 others. the explosion was so powerful it shattered windows of a nearby building and damaged cars parked outside, and it's not yet clear whether explosives were meant to be a bomb or just stored in the building. members of the communism party in russia marching in moscow to celebrate the defender of the motherland day, commemorating veterans of wars as well as communism leaders like stalin. mcdonald's is lowering prices on
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sodas and specialty drinks. for a limited time in april, all drinks are a dollar, while smoothies, shakes, and frappes are selli ining $2. back to you. >> thank you. let's get back to dom here with winners and losers in today's session. >> melissa, share of l brand, taking a hit, issuing first quarter guidance short of expectations. the parent company of victoria's secret said sales likely to fall 20%. mean while, shares of carter's, 5% higher. company said it acquired hip hop for $100 million, $140 million in cash. fourth quarter results down sfimts there. tesla shares lower on the day so far, electric car maker recorded a wider than expected quarterly loss, but on track for the loss of the lower model three priced model in september. also, musk announced a departure of wheeler in april, replaced by a former cfo, and another
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beating street onlines, revenue rose 4% with sales of notebook pc strengthening. a 52-week high, and eight firms raised price targets, brian, on the stock market. >> thank you very much. the overall dow jones industrial average on pace to close higher for the tenth session in a a row. each time it's set a new record, every new high is a record high. that's genius, america. sounds good. check out the s&p 500 tech sector aiming for a 16-day winning streak. can it go higher? tech and trading nation, plus, robots are not only coming for your jobs, but your bathroom. in fact, robots are taking over america's bathrooms, see this toilet to -- you're going to want it, trust me. are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and world-class innovations.
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what witi'm stressed,e horse? trying to figure out this complex trade so i brought in my comfort pony. well you could get support from thinkorswim's in-app chat so you don't need a comfort pony. so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. aferton, california, the most expensive place to live, which is why titans of industry and the tech world live there, but cameras are very rarely allowed inside unless, of course, you are the secret lives of the super rich as we are. take a look.
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♪ >> reporter: every inch of the almost 27,000 square foot megahome is designed to attract a tech titan or asian billionaire. >> chinese buyers come here for numerous reasons, close to stanford, prime silicon valley. >> reporter: some of the touches? this reflecti ining pond that as with the center of the home as well as matching pond and swimming pool in the backyard. but this modern mansion is not just high end. it's also high-tech. these touch screens control everything from the lights, the sleep fireplace to the floor-to-ceiling privacy shades on the window, but the really fiesta? this robotic toilet. >> opens automatically, alters to fit for comfort. automatically plays soothining spa-like music, and then when you are done, press close, and it closes for you.
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>> in part because of the toilet, that home recently sold for $35 million, basically, the asking price, sold very quickly, but, by the way, this has, a, quote, child incubator room, where genius kids dream up the next startup or do their homework. this house, again, now the most expensive zip code in the country, where the average home sells for over $4.5 million, guys. >> that is one of the most, or thee most expensive one there? highest sale? which? >> at the time, most expensive listing. there have been sales way above that, but $35 million. this house sold within weeks. we just finished shooting it, and it sold. usually it takes months to years to sell. this is a red hot place, and tech features in the house, i mean, they make smart homes look stupid. everything in the house was tech and controlled with an ipad or touch screen. >> looks beautiful. robert, thanks. don't forget, a new episode of
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"secret lives of the super rich" tonight at 10:00 eastern on cnbc. s&p tech sector, rather talk about that toilet, has risen for the past 15 sessions, longest winning streak ever. wow. where's tech headed next? the trading team, our technician with openheimer, wall street blog. it's tongue in cheek. here's the thing. news is man bites dog, dog bites man. what's news is not normal, what's normal is not news. at what point do we quote, make thursday because the market does something unexpected? right now, it's every day, we're up. every single day. i'm nervous, by the way. >> that's right to be nervous. the s&p 500 tech sector has not had a down day all month, it's gone up 15 days in a row, it's close to getting numbers -- i don't know, i don't know we'll do that, but in perspective, the dow in 120 years never had a
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15-day winning streak. the earnings for the s&p 500 tech sector were very good, only 5% of the stocks missed earnings, and it's the best of the entire -- of all the sectors in the s&p 500, so i would say investors playing broad, this is a great opportunity to take profits, to pay back your holdings. if you have something like the xlk, take money off the table to e redeploy that, but here's the key thing to remember about the xlk and this tech sector is it's an overwhelmingly concentrated ind index, just four stocks, microsoft, google, facebook, and apple. they make up 40% of the index. the other 60-odd stocks make up the other 60%. look at that, there are good names there to play names, apple, microsoft, ion, others good name, but marginal names, stay away from.
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take the profit. >> offering an award for the best stat or random thing in the show every day, you win. you win the melissa lee or annual award for that 15-day move in a hundred year stat for the dow. all right, incredible. is it healthy? is the line straight up? is it going to continue to go straight up? >> i -- it's not going to continue to go straight up, but i think what we're seeing is very strong momentum to this. it's worked up a loot. i think it's probably due for a pause. i think if you are in it, let it ride. if you get a pullback, buy it. we like tech for the long run. for a few reasons. one, look back at the past few years. tech has really shown -- it's really the one sector that has shown it can be a steady leader through various market rotations that we've had, whether it be gyrations in interest rates, commodity prices, currencies, through all those tech is the only sector that's shown it can
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lead through all the ebbs and flows. >> yeah. >> point two, stress is broadly based across capitalizations, across industries, leand look a the trend, sec sore versus market, it's five-year resistance, getting back to levels from 2002, i think that chart indicates tech remains market leadership through the course of 2017. >> all right. ari, thank you very much. if viewers missed it, in a hundred years, the dow never had a 16-day winning streak, but technology has. thank you. only 11 minutes to lose your award. thank you, appreciate that. for more, go to tradi tradingnation.cnbc.com. >> here's the signature on the new dollar bills for four years. what does it say about the person? we have a handwriting analyst to tell us about the treasury secretary's evolving autograph next on power lunch. and now, the latest from
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tradingnation.cnbc.com and a word from our sponsor. while it is true that volatility can benefit the trader, it can also lead to chaos and a greater amount of risk. in volatile markets, consider narrowing your risk parameters to
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take a check on the markets here. the dow and the s&p hit their record highs. we are seeing trading today. utilities as well as telecom each up more than 1% a piece. stay tuned. more "power lunch" straight ahead. word that i use? yes, sir, your password. there's been another breach! sir! right. okay. i-h-a... ...t-e-m-y-j-o-b-1. ihatemyjob1? wanna get away? now you can with southwest fares as low as 59 dollars one-way. yes to low fares with nothing to hide. that's transfarency. sfx: clap, clap, ding ♪ ♪ ♪
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my kids and others have encouraged me to have a new signature so i've been practicing it so it will be nice
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and neat on the money. >> can you show us? i have a sharpie here. >> i can. >> here you go. >> now this is a little dangerous because i don't want you copying it. >> no. no. >> this is my old signature. and this is my new signature. >> much improved. let me show the cameras. >> very different. >> that is a much improved signature. as becky said, that much improved signature is what you're going to see on your new money for the next four years. what does the signature reveal about the man? joining us is kathy mcnight, handwriting expert. >> good to see you. >> he has his natural signature and the one that he neatend up to sign the money. what does each signature tell us about steven mnuchin. >> you don't have to be a certified handwriting expert to see that the first one is illegib illegible, the second one is legible.
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when we write ledge inbring we're more likely to be seen by other people. >> so you think that he didn't want to be seen naturally? and when you come up with a signature and you know that one is sort of made nice, like this second one that steven mnuchin has versus the other one, do you say that the original one is the real read on the man and the second one is not? >> well, no, i think they are both the real read of him. he's being more conscious about the second one. the first one is like he's comfortable keeping his personal self more private because that's what it means when his signature is illegible. person likes to keep things that are personal to them closer to the vest, but when we know we're going to be in the public's eye and everything else, would he will create a signature that, you know, is willing to be seen. there's much that he didn't realize that he was writing that i can tell. for example -- >> oh, tell us about that. tell us about that. , well, for example, he put his middle initial t. believe it or not there's at
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least six styles of the way that you can sign your name. when somebody puts their middle initial in their name it means they're going to be more conventional, more willing to adhere to social moors and they are willing to conform to what's expected of them. >> put up the image there one more time. i'm fixated by the little dot. >> the little dot. >> so am i. >> that's the dot of the i and then on the right one the dot of the i is all the way off to the far right. >> yes. >> does that say anything? >> man has an eye. >> yes. >> it says that. >> there's a whole chapter on how we can sign our i dots alone. when it's flung off to the right, that means we're not being detail oriented at that time. >> i see. okay. >> you did ourgs by tours, by t way. what's wrong with dots?
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tyler's bashing dots. >> that's a great looking signature. >> there's my -- there's my i off to the right. what does that mean, kathi? >> look at that. >> i'm not detail oriented? >> is that an i or a smudge. >> brian, i'm going to notice there's something else that jumps out about yours way more. you have figure 8s all over your handwriting and i bet you did not deliberately write figure 8s in there. when 8s show up it represents devotion, dedication and employment at this. you don't have one, you have several. >> i see the 8s. >> he's a devoted man. >> yes. >> take that. >> i'm also anal. >> what about tyler's? you have mine there. >> yes, tyler. okay. so you have -- >> i don't want to know. >> oh, boy. sorry. no, i'm just teasing. you have this wonderful large t which shows a really healthy ego, which means you have to have that to be successful in business, right? >> brian's b is pretty big, too.
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>> not as big as his t. >> get to the rest. this has to be good. melissa. >> melissa, yes, melissa, i've got your number. melissa might seem hard as nails maybe sometimes, but she has a heart of gold. this girl cries at hallmark commercials. >> love that. >> nice, kathi, thank you. >> thanks for watching "power lunch." >> "closing bell" signed, sealed, delivered right now. >> big t. hello, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. >> here we are. >> small handwriting means you're very introverted. that fits her perfectly there. >> ready to be psycho analyzed. >> what do you think? >> that's lovely. you could be on a currency. >> i don't know about that. my sixth grade teacher said i shou b

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