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tv   Power Lunch  CNBC  March 31, 2017 1:00pm-3:01pm EDT

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>> micron the same thing. my favorite is intel. i think mobile eye really helps them. >> we have 15 seconds left. >> i'll take them all. the trade i put in yesterday which is short treasuries. i still think that yield pops up. >> you did leave me time. it's been a great quarter for stocks. we'll see what the next one brings. the next hour "power lunch." i'm michelle caruso-cabrera. here is what's on the menu. commerce secretary telling cnbc this morning, you're worried about a trade war? we're already in a trade war. he says we've been in one for decades. what the administration says it's going to do about it and what the impact will be on u.s. manufacturers. that's first. the details strit ahead. also, rebuilding america's crumbling infrastructure, and there's a lot of it as we've told you. we're going to tell you how to profit by investing in one of america's most hated airports. i hope their on time payment rate is better than the ontime arrival rate.
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a bold new call coming up in "street talk." better than 1,000 reasons you need to watch "power lunch." and welcome to "power lunch." the final trading day of the month and the first quarter. the dow, though, is struggling. it is down by about 29 points. s&p trying to carve out some gains. the nasdaq continues higher up by ten points. all three, by the way, up for q-1. check out the movers at this hour, blackberry soaring about 13%. the company beating earnings estimates, expects positive cash flow for fiscal 2018. fmc also surging about 13%. dupont divesting part of its crop protection business fmc acquiring health and nutrition business. brian? all right, and i am brian sullivan. here is what else is happening this hour. the senate intelligence committee denying michael flynn immunity in exchange for his testimony. panera bread rolling out new labeling of sugars in self-serve
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drinks. the first such move by a u.s. restaurant chain. and two biotech stocks tanking double digits right now. straight for details on why. meg? tough day for biotech. we're checking out accorda. four patents around the big multiple clear so sis drug down 24%. because they have been invalidated, the one on ampyra represents about 95% of the quarter's revenue. it does plan to appeal. at the same time it is emphasizing it has pipeline products going on focusing on parkinson's disease. this decision hitting acorda hard. hitting pharma hard, down 20% before it was halted in a decision in which forward pharma has been fighting with biogen.
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they are popping on this news on the win here on this drug. it essentially would have ruled that biogen would have had to pay a 10% to forward pharma on this drug. this looking like they won't have to do that. maybe not popping so much because biogen preemptively settled with forward pharma. a lot of movers on patent decisions in the biotech space today. >> meg, thank you very much. president trump meeting with manufacturing ceos at the white house today. also set to sign two new executive orders on trade. commerce secretary wilbur ross ratcheting up the trade war rhetoric as michelle referenced earlier and he did it right here on cnbc. tyler, soaring optimism this afternoon during the meeting with those executives 93% of the companies surveyed at the national manufacturers association say they're feeling
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good about the outlook and that's a record high driving up sentiment is a prospect of tax reform, infrastructure, and deregulation. here is the president in the roosevelt room. >> i am very, very proud of what you've been able to do in a short period of time, the optimism is so high, and i see the billions of dollars that are being invested by your people and your representatives in plant and equipment and jobs. i appreciate that. >> later this afternoon at 3:30 p.m. the president is scheduled to sign two executive orders on trade that he said are krcritic for leveling the playing field for american companies. the first order calls for a review of any country with which the u.s. has a trade imbalance. the second executive order will bolster the government's efforts to collect counter veiling duties. commerce secretary wilbur ross did say earlier these measures are necessary because the u.s. is already in a trade war. we'll bring you more from the signing ceremony when we have it. >> yep.
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you'll see that here on cnbc. thank you, ylan. to steve liesman here to acce separate trade fact from trade fiction. steve, is the trump administration speaking truth about trade? are we in a trade war? >> not according to most economists. the idea the trade deficits are negative for growth and it should be the target or the aim of policy. it's very interesting, michelle, that from the right and the left, these are people who disagree about the role of government, they all agree that targeting the trade deficit is the wrong way to go and really the idea is that when we have higher trade deficits, we have higher growth. we have lower trade deficits, we have lower growth. the connection between growth and trade deficits. now i don't think they disagree with some of the administrative things going on here. the idea companies that are assessed duties should pay them. even the idea we should review companies with which we have trade deficits to see if there are administrative issues at work here. but if i could just read you what was said on trade. peter navarro said if we're able
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to reduce trade deficits we should be able to increase our growth rate. >> yes, that's the one, the thing that a lot of economists, larry kudlow, for example, frequently disagrees vehemently with that. >> larry kudlow and paul krugman. when do you see them together on the same issue? >> i think your second point is super important when we still see manufacturers with all of this optimism. part of the executive order is looking at trade abuses, put aside the trade deficit. we hear from ceos behind closed doors, happy about the shift in attitude. >> okay. >> that they're going to be tough about those. >> the things that matter that take away manufacturing jobs. in the first order 80% to 87% is automation. in the second order, things like lower labor costs overseas. in the third place, you might put something like the idea that they have that we have environmental rules and labor rules and they don't, something, by the way, tpp was going to
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address, which we're not now going to address. and then you want to put the actual administrative things, it might be not even on the list. >> the thing i hear the most, the greatest frustration, is, for the most part, chinese companies can invest here in almost anything they want. the minute a u.s. company wants to invest in china, it has to be a joint venture. you have to have the backing of a state-owned enterprise. had he haven't done enough to change their economy. >> we should be upset about china investing here for what reason? >> it's not that. >> it is that. that's what you said. >> no, it's that u.s. companies -- they can't do the same thing. >> who cares? i mean, who cares? >> we care. >> if china wants to invest money in our factories, why is that bad for us. >> it's not bad. it's just that we don't get the same opportunities there. >> look, i'm not saying we shouldn't address those opportunities. >> that's what i'm saying. >> but that's not the issue if they're coming over here and
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they're buying our factories, employ iing our people, investi in our country. what country has grown without having investment. >> every 20 years it was a different country doing it. we have to remember it was japan in the '80s, it was mexico -- 100 years ago, do you know who the low cost producer was? >> the u.s. >> the united states of america. >> and do you know what money -- >> foreign money built our railroads. >> you're missing my point. maybe these are ways -- >> you're misrepresenting the trump administration which is targeting trade deficits as a negative and i want to read you what cato institute, the far right cato institute -- >> i know exactly what they are saying. i know what navarro is saying. >> the u.s. has run trade deficits for the past 41 straight years during which the size of the american economy tripled in real terms and the number of jobs in the economy almost doubled. this is an anti-trade administration.
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the fear is they will end up reducing u.s. growth through their anti-trade policies. >> i don't think most companies disagree. it's just that when it comes to examining tradeoffs they are happy to have somebody defend itting their interests as well. >> almost every ceo i've talked to is as concerned with the trump administration's trade policies as they are happy about the trump administration. >> explain to me the optimism among the manufacturers. the optimism is incredible. >> okay. and what have you seen in terms of actual capital investment? >> steve, we're 70 days in. >> they can be as happy as they want to be. >> indicators always lead actual investment. >> what soft indicators? >> pmi -- yes, they do. 9 to 12 months at the lead loan growth. >> how much of that historic 41 years in a row was oil?
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>> the trade deficit? a bunch of it. we've made a lot of strides in that regard. >> speaking of which. >> it's a nice segue, thank you very much, steve. i have a feeling we'll continue our trade discussion at a later date. meantime, speaking of oil, the weekly numbers are out and, guess what, for the 11th straight week we are adding more oil rigs. ten more oil rigs were added this week. 662 trilogy rigs right now operational on land in the united states. by the way, that's compared to 300 the same week last year. it is the biggest quarter for oil rig additions since the second quarter of 2011. guys, we wonder why prices have been soft, pro-he deductiductio up. >> i don't love the border adjustment tax. i like talking with about it. >> a very good thing for domestic oil producers and refiners. by the way, kevin brady, happens to be from houston. shocking how that works out,
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tyler. >> absolutely. president trump meeting with a number of the nation's small manufacturing companies. start ed the meeting by highlighting a study showing there is increased confidence in the sector, something we were just talking about. patricia miller of the plastics manufacturing company matrix four. she was in that meeting and she joins us now. welcome. good to have you with us? >> thank you. good afternoon. >> well, we're delighted to have you there. how would you characterize the meeting and the optimism in the room? >> the meeting was definitely exciting, it was nice to see president trump listening to small and mid-sized manufacturers and being able to have a seat at the table and the conversation. >> tell us a little bit about your company. i gather you're involved in 3d printing and other sort of cutting edge technologies. where is your company based? what are your revenues? it's a family owned business, i gather, that has been in your family for some time. tell us about it. >> matrix four is a three year
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old startup on a growth trajectory with a 40-year history. my grandpa started in 1976 and ran it for 37 years. i left fortune 500 pharma in the biopharma space to join manufacturing. last year we did between $3 million and $5 million in r revenue and plan to double again this year. >> so we were just talking about optimism in the manufacturing sector which certainly is higher than it's been in a long, long, long time. i assume you share some of that optimism and i'd like to get you to speculate a little bit about why manufacturers, maybe not all of a sudden, but certainly in a bit of a shift, are as optimistic today as they are. why? >> absolutely. i'm completely excited about the industry and manufacturing. that's why i decided to join the industry three years ago. i think there are many reasons for that.
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we're in a space where we're defining the next chapter of manufacturing. we're looking at technology, automation, 3d printing, and we also have an administration that we have his ear in looking how is manufacturing, which has been a backbone for our economy, important and how do we make sure we're supporting manufacturers to be able to continue bringing jobs and work here to the u.s. >> you mentioned something that seems really important there. the administration, you've got its ear. what is it about this administration that gives comfort to manufacturers like you? >> i think manufacturers, and speaking on behalf of small manufacturers, like to see a president who's business oriented at the table and removing some of the red tape that makes it challenging for us to do business. >> what about trade? are you worried about trade? did you hear the whole argument about trade we just had? are you worried that this administration is anti-trade?
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>> i'm not worried they're anti-trade. manufacturing has been impacted, particular ly matrix four and during the recession. i think we need to have the conversation and be open-minded to it and ensure we're staying x competitive within the industry. >> can you find workers? >> excuse me? >> can you find workers qualified, sophisticated stuff, can you find people? >> yes. so matrix four is a plastics manufacturing company. making actual plastic parts. it's a challenge. we talk about it a lot. how do we engage in an industry and make sure we're automating as much as we can and have to in
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order to be competitive and it makes sense. we still need a labor force. >> patricia miller, a pleasure. >> she sat right next to the president in the meeting. >> cool. still ahead if you hate flying out of new york's crumbling airports we have a way to offset the pain. invest in them. we'll tell you why and how. but first, the final trading day of the month and first quarter. so where is your money best served? we'll take a look next.
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we have a few more business hours, basically quarter one is in the books. not a bad quarter for most stocks. let's get more on bob pisani down at the nyse. it's been a solid quarter overall. with the s&p up about 5% on the quarter, techs, nasdaq 100 the big winner. banks and energy are lagging as you can see. the bigger story is money continuing to flow into the stock market, etfs have recorded their biggest quarter ever. $135 billion in inflows. investors wanted stocks from all over the world. nearly half were into u.s. equities but international funds also had strong inflows particularly into europe and emerging markets. the big etf winners were the plain vanilla, the s&p 500 funds, but emerging market etfs
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and european etfs including e e eafe. high yield etfs like i-shares saw significant outflows, about a billion dollars. that's about 6% of the assets under management. hyg, by the way, ten years old on april 4 th. what's going on? this is all about confidence. confidence on three levels. number one, on the economy consumer confidence at the highest level since 2000. skeptics note the higher economic numbers have not seen the big jump this quarter. sentiment indicators have seen the jump. q-1 earnings tracking up 10%, the best showing in near ly six years and confidence on the trump agenda of lower taxes, infrastructure spending and fewer regulations. the rest of the year will be between those three factors. can the flows continue? how much is due to the trump agenda? how much the surge and low cost etfs and investing in general. it's clear they can influence fund flows. the third week of march, the
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first negative week since the election for flows. that was the week the house failed on its obamacare repeal bill. very clear trump agenda can influence flows. melissa, back to you. >> bob pisani, thank you. where are the best places to put your money to work next quarter? chief instrvestment strategist gabriella from jpmorgan asset management. good to see you. i mean, we entered the year with certain notions of what the trump trade was going to be and how they were going to do in the first quarter. we thought financials would be the clear winner. they're the third worst performing sector for the quarter. energy would also be strong. that was one of the worst performing sectors. how do we re-evaluate to reposition for the second? >> when i think about the trade this quarter, the factories being assets did much better than something like cash or quality fixed income, to me it's not necessarily a trump trade, it's a global reflags trade, it's a pickup economic data around the world and that is
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still very much the case. so as we go into the second quarter, that's the main factor we're watching. and as a result we still would be positioned much more for risk assets including the cyclical sectors some of which did not do as well as expected like financials. >> at this point, technology was a clear winner. do you continue with what is working or do you think there's a rotation? >> it will be a mix, stick with what's working. in an environment where top-line revenue and earnings per share is very difficult to come by, stick with those that are able to generate it and technology is a clear winner in that regard. i also think that in a market that's really hard to find a lot of compelling values, you want to find things that are inexpensive. financials and energy will meet that criteria. >> are you still big in tax reform or not? in the wake of what happened with health care reform, what do you think? it was supposed to deliver a lot more to earnings and the bottom
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line. >> the first two things are earnings are much better. the third thing that we're waiting to bide our time on is will the fiscal policy come. i think it's going to be smaller and take longer. is the reflags to propel u.s. stocks if the trump agenda stalls? >> i think so. it's about the magnitude. and so for us we have to remember in the ninth year of this expansion we expect earnings to continue trending up, the economy to be fine. but we're talking about 5% earnings growth here without any sort of corporate tax reform in the u.s. you have to be selective. >> where can we make money? is that so wrong? >> staying invested is how you make money. think about the first quarter, cash gave you zero percent.
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the6%. international investing especially is where we expect the outperformance the next few years. >> all right. michael and gabriella, thank you. crayola has kicked one of its classic colors out of the crayon box. can you guess which one? >> pink floyd. >> burning cyenna. >> some middle east airlines getting creative in the electronics travel ban. we'll have both of those stories. and an explanation of what brian was talking about next. guys, what's happening here? hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.
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crayola kicking one of its colors out, dandelion. the first color to be pulled from the box set in its 100-year history. what did it do to anybody? a new color in the blue family. this is discrimination against yellow crayons. keeping the shade under wraps. >> "the huffington post" will go crazy. >> why? >> you're right. it's discrimination. >> it will be great. all right. if you are flying from the middle east back to the united states anytime soon and are worried about the laptop ban, a little good news. two middle eastern airlines are offering passengers flying free laptops and ipads to use on
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their flights. they are also offering free wi-fi on all u.s.-bound flights. the recently imposed ban of large electronic devices on some flights. probably a good idea except for the fact i doubt most people will reinstall their e-mail and preferences on to somebody else's ipad regardless. if you want an ipad in your hand to hold a drink on it maybe it's fine. >> the kids. >> a chunk of an atlanta freeway missing after a massive fire cause d it to collapse. more of this crazy video coming up. and how you can profit from one of new york's most hate d airports. gee, which one.
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i'm courtney reagan and here is your update. a judge has approved an agreement for president trump to pay $25 million to settle lawsuits over his now defunct trump university.
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it end nearly seven years with customers who claim they were misled by the university's real estate claims. one of the two suspects charged with murder in connection with a mass shooting in a cincinnati nightclub appearing in a court today. bond would be set at $1.7 million. scottish leader sturnlgion has requested a second referendum on independence. she sent teresa may a letter requesting the transfer of power to allow the vote. mnuc mnuchin said he did not endorse the lego movie. he sent a letter to government ethics saying he responded in jest when asked if he had movie recommendations and it wasn't an official product endorsement of the movie. that's your cnbc news update. back over to you, tyler. hey, a guy like a movie. >> to dominick chu for market
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flash. >> reporter: the home builders up about 10% just so far quarter on pace since the nourt quarter of 2014. that was when the builder's etf gained about 15%. top build, surging 32% on pace for its best quarter ever. best quarter since 2012. still, home builders perhaps a good sign for the economy. back over to you. >> thank you very much, dom chu. the bond market, buying on the short end of the curve but selling on the long end. the 30-year yielding above 3%. we have a lot of economic data today including one key headline. dropped since 2012. we see the front end of the curve. >> and a fire so hot it caused
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part of a highway bridge in atlanta to collapse. this was the scene at rush hour thursday night on i-85, one of the busiest roads in the country. the blaze began when massive spools of plastic utility conduits caught fire. the mayor of atlanta calls it a transportation crisis. aditi roy is live in fremont, california with some details. hi, aditi. >> reporter: hi there, tyler. dams are a big part of infrastructure and i want to give you a lay of this beautiful land here. right there is part of the dam. it controls the water flows from this huge reservoir you see behind me and that water is supposed to provide drinking water for roughly 2.5 million people in the state. here is the catch, just 1,500
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feet next to that old dam is a fault line, the threat of a major earthquake, part of the reason they have this huge construction site. it's a $5 billion infrastructure project and is one of the few instances of preventive maintenance for a segment you don't hear much about until there's a problem. intense dorm, in that case they averted a dam failure. in its most recent infrastructure report card earlier this month. the organization said it would costed 45 billion to repair the country's aging high-hazard dams and $80 billion to improve the nation's levees. here in california alone, several dam and levee projects are on the $100 billion
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infrastructure wish list for the federal government. back to you. >> all right, thank you very much, aditi. dams and levees, bridges and airports, highways, air traffic control. the list is so long. but what type of infrastructure gives the most bang for the buck? joining us now is an author of too big to failing. hey, barry. >> michelle, good to be with you. >> imagine we did have a trillion dollars we could spend right now to fix infrastructure. where do we get the most bang for the buck? where should that money go? should it go to the airport, to the highway, to the bridges? >> let's look at where the congress is right now. the leader mr. schuster who says we're not putting any tax dollars into infrastructure. if we're going to go forward with the president's plan it will be with private money. or within our country.
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we are facing a russian roulette situation here and we keep spinning the wheels. one of these times a bullet will come and we'll have massive failures, not just one or two. >> we already had it in minneapolis, barry. >> atlanta yesterday. >> 600 failures since 1989. >> does that mean we should do bridges? that's why i constructed the question the way i did. imagine we had a trillion dollars now, put aside the politics. where would it be best spent? >> 6,000 vulnerable bridges capable of collapsing in a moment's notice like the tappan zee bridge. we could employ 2 million workers, almost a million of them currently unemployed, put them back it to work for three years. answer lear projec ancillary projects would go to work to replace the 8,000 highly vulnerable bridges. what would happen.
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almost a third of it would come back when we pay the employees. it's not really a trillion dollars. >> when you come up with that list, do you factor in the usage of those particular bridges or those particular tunnels in terms of the number of people that go across it every single day? and does that make it a more worthwhile spend? >> many these bridges handle 50,000, 75,000 and 100,000 plus travelers per day. they do involve tens of millions of the travel public including on buses. >> the economic consequences i don't think catastrophic is too big of a word. how are they going to get into
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work and they're not? the impact would be staggering. take that money and invest it. what it does, it creates a deficit neutral process because the income those workers would make would go -- >> comes back to you. >> to pay their communities for schools, children's clothing, new cars or used cars. >> we get the multiplying effect. >> we're not going to impact tax dollars doing this. >> thank you so much, barry. >> good to be here with all of you. >> so cnbc, bring it back to your money. if all these big infrastructure projects actually happen, how can you invest in it especially if you don't want to guess what stocks may win after all some of the stocks have already had huge runs, some have doubled. one way to invest might be through municipal bonds. yes, i know. they're not that boring if you can make money off them.
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a guy who manages $20 billion in the space. co-head of the municipal manager's group. thanks for joining us. no offense on the municipal bond comment but they get forgotten about. first off, do you believe that we will get something done? are you strategizing in anticipation that something will actually happen? >> i think something will happen. keep in mind infrastructure does not happen overnight. >> it has been a big mantra for president trump now through his campaign and today what's getting done. it's great that he's talk iing about it. our insights at the beginning of the year, we talked about rebuilding america. innovative financing has to happen. how to position their portfolios in anticipation of this increase of p3s. >> i own a municipal bond and
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the leading holding is the new jersey turnpike authority. >> every time i go through the darned ez pass, i'm sort of paying myself. a lot of our viewers live in this area, they suffer through laguardia airport every single week. can you invest in the most hated airport in the united states? >> that's a great point. >> at least you pay yourself there. >> it's a microcosm of what's going on throughout the country. we need to spend more money on our term nalts. our terminals. >> tell me if i invest in laguardia, what do i get? >> between 4.5% yield. even on not only a domestic but global basis. think of that income stream on a global basis where we're staring at negative rates throughout the country. we're seeing massive demand from
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europe, asia, looking at municipal bonds and i agree with barry, this is the source of funding is very important as to how you attain that. >> explain that to me again. >> trying to reduce taxable income are the people buying municipal bond. so why are foreigners buying municipals? >> it's kind of boring. the marketplace has massive nuances, credit. revenue-backed financing. foreign buyers are looking for a couple of different reasons. low default rates. infrastructure investing is a municipal basis type of investment. >> sorry to cut you off. we promised three. we like to deliver on our promises unlike politicians. indiana bridges and the worst traffic in america now is i-66,
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the beltway area around d.c. how do we invest in those and to michelle's point how can we make? >> today the bridges and tunnels over the ohio river was governor pence of indiana, they're there, they're under construction. they just got upgraded. roughly 4% tax exempt income stream. if you're just throughout the country that's attractive. >> i-66? >> i-66 is a new project coming hopefully some time this summer. there's no price talk about that yet. as anybody who has ever driven anywhere in and around the beltway in washington, d.c., knows, you need it. you need to alleviate -- >> it's an hour from d.c. to manassas. >> go osborne high school. >> between tysons corner and gainesville just south of the city and it's incredibly useful, important. demand will be there because,
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again, the issuance will most likely be virginia exempt. and so for residents throughout the country, in addition to specifically virginia clients they should look into that. >> will this be a public road or a toll road with private funding? >> it will be a p3. >> public-private partnerships. the dominant source can't do it on their own. >> bob, specific ideas. >> thank you very much. appreciate it. >> thank you for having me. >> the four big stalk calls including the one that may have the most to lose when mcdonald's starts using fresh beef and the one stock one analyst says has an upside of aluminum prices start climbing. e*trade's powerful trading tools, give you access to in-depth analysis, and a team of experienced traders
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time now for friday street talk. recommendations on the stocks we believe you need to know about. >> first up, alcoa, getting an upgrade going up $10 to $45 a share. the analysts says there's about a 30% to 40% upside in the shares if aluminum prices remain flat and a 60% upside if prices rise just 10%. bmo believes shares are discounting 10% to 15% decline in prices right now. >> wow. this next stock when i did this this morning, i thought of you and of "fast money." this could be a guest at 5:00 p.m. eastern. loop capital with a buy and an $1,100 per share target. yes, melissa -- >> the highest on the street. >> second highest. 25% upside. there are two major aspects. there may be a spinoff or ipo which could have a $2 billion valuation.
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as you noted it's the second highest price call on the street. susquehanna at $1,250 but that's a lot of upside. >> people have been speculating. the third stock here, actually two for one, mcdonald's and wendy's. credit suisse, offering fresh hamburgers. the sales improve materially in fresh beef test markets with rails rising 35% in some places but wendy's, which is neutral rated, could have the most to lose given the heavy reliance on the fresh beef messaging as a selling point. differentiating factor. mcdonald's rated an outperform. >> if there are fresh beef test markets, are there not fresh beef test markets? >> what? >> no thanks. fourth stock, total system. tss. this is your smallish cap call
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of the day, payments business guggenheim a buy. the electronfication of money thinking they will have strong earnings per share growth and that trend should continue into next year. management will support the stock through buy backs. that target on tss is about 15% upside. and with that "street talk" is old beef, michelle. >> got it. thank you, brian. coming up, hoop dreams for advertisers. what march madness is restoring faith in supports as the savior for the tv bundle next. just like the marines did. at one point, i did change to a different company with car insurance, and i was not happy with the customer service. we have switched back over and we feel like we're back home now. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children, and that they can be protected.
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the nfl's poor regular season ratings led to doubts it would be sports that kept the precious bundle all in one piece. college basketball however telling a very different story as we head into the final four this weekend. julia has a look at the difference between the two. >> march madness shows that sports fans are obsessed as tuning in for live sports as ever. coverage is up 10% from last
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year, according to ncaa and that makes it the third watched tournament in 24 years. the digital presence has exploded. a record 88 million live video streams, more than 30% increase over last year, with social media engagement up 75%. now, these numbers aren't just good for cbs and time warner, they could have implications for other sports leagues in the process of selling their digital rights right now. now twitter streamed 10 nfl games last season and now they are negotiating with facebook and google and amazon and twitter over those digital rights of some thursday games but the deal expected to be announced in mid april. facebook earlier teamed up with major league soccer and univision to live stream 22 matches and lives shows and in talks with the mlb with streaming one baseball game live per week. now dismy will be testing demand
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for streaming sports later when it launches a new streaming app with some sports that aren't on espn. tyler? >> thank you very much. next guest is betting that fans attending events like march madness will also want maybe to book a last minute hotel room. hotel tonight, a mobile app offering spontaneous hotel room bookings two deals with madison square garden and yankees today. here to tell us about is is sam shank. good to have you with us. >> good to be here. let's start with the partnership with the yankees and madison square garden. have to be at the garden at yankee stadium and do i get a discount? >> actually some deals that unlock when you're at those iconic locations. >> geo located. >> exactly, we are now seeing mainstreaming of last minute hotel bookings. when we started mobile was 2% of
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all hotel bookings and now it's 50%. 50% of all hotel rooms are booked within three days of arrival. this is a mainstream thing. >> you use it, right? >> i use it a lot. >> showing me on your phone. >> i use it a lot because we travel short notice a lot and sometimes it's better, you do take the risk that you hope there's something available if you don't book ahead in advance. your strategy, as far as i can tell, i use hotels.com to be fair, and does your strategy have fewer selections and always have choice, maybe ten choices in new york or l.a. rather than all of them and then bang the discounts more with those specific hotels? how does it work? >> so the curation is what we call it. it's the 15 very best deals you'll see and you pulled out the app right now, very best deals that are surfaced at the time i open the app. it makes it easy to make a selection because you don't have to go through a list of hundreds of hotels --
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>> also rank them like family oriented, hip -- i don't know disco lights, want my kids to have a comfortable bed. >> exactly. the hotels are competing for those spots. so there's an incentive to give us better deals. >> i assume the theaters or stadiums whatever, they themselves have chosen to geo fence the building? you ride that technology? they are using it for all kinds of things and you're able to do that too, correct? >> they are probably using it for other things. what we do is proprietary for us. we built the geo location technology, and it's available in airports and around the hotel in the same day, many cases. the hotel can opt in and provide a special deal to those types of people and it's a natural fit -- >> they are offloading their unsold rooms to you through a deal that you have. what would the typical discount be for one of these rooms? let's say i'm going to -- you name the brand, and i book three
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weeks ahead of time as opposed to booking with you a day ahead, two days ahead. >> we go seven days in advance, we don't see three weeks in ahead but what we see is a 20% decline and it works exactly the opposite of airlines, airlines the worse time to buy is right before you take off and hotel, that's the best time to buy. >> what prevents me from going on your app and seeing that there's vacancy at marriott and going to marriott directly? is it guaranteed that your rate at the last minute will be lower than the hotel's own rate? >> we have a best rate guarantee it will be at least the same -- >> why would you do that? >> the hotel is doing it because they have rooms going to go unsold and they need to fill them up with incremental revenue and they decide is it worth providing this discount to fill the room up and they can decide some days it is and some days it isn't. they have ultimate flexibility whether they do it or not. in terms of why you book with us versus somebody else, it's
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really easy, ten seconds to book the room. >> you draw the h. >> you draw the h, a hotel bed logo, that's what you're going for. >> that's right. >> we have a question from a caller, our executive producer, he called in -- >> sandy in englewood cliffs, you're on the air. >> are millennials traveling and ditching -- and using you? >> it's about experiences not things. they want rich experiences and music festivals and sporting events and collect the experiences and times with their friends and snap chat about it. use mobile devices for ordering everything. they want flexibility and freedom and to save money. absolutely, that's our core market the millennials. >> seconds day in a row had a uva guest on. >> you're uva? >> yeah. >> thank you. >> trade war is on the way. the commerce secretary says it's already here. how big of a risk to the rally
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is it? looking after the bees in the next hour of "power lunch." it's been over 100 years since the first stock index was created, 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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welcome, everybody, to the second hour of "power lunch." michelle and melissa and brian are joining me. we have two hours until the closing bell. the closing bell that will ring in it for the end of this first quarter of 2017. here's what we're watching right now, dow up 5% in the first quarter but could the stalled agenda in washington if it is in fact stalled be a risk to the rally? we'll debate that one straight ahead. plus, infrastructure in focus, will building bridges help build bridges in a divided congress? how do you like that little turn of phrase? retail and especially target taking it on the chin so far this year. is now the time to bet on one of the year's biggest losers? melissa? >> thank you very much. the nasdaq going out with a bang in q1. >> melissa, it may not seem like a lot, we're seeing some gains in here however what we have are record highs. we just hit a record high in the nasdaq 100 index just within the
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last half hour or so. leading way higher for some of those big cap names you might expect here, a record high for shares of amazon and microsoft shares and starting to drive these gains. as we look towards the wrap-up of the first quarter overall, we are seeing again record highs for the nasdaq 100, the stocks that matter the most when it comes to the nasdaq. back over to you. >> thank you very much. one potential risk to the rally that dom was just talking about, a trade war. here's what wilbur ross said on cnbc this morning. >> we are in a trade war. we have been for decades. the only difference is that our troops are finally coming to the ram part. we didn't end up with a trade deficit accidentally. we ended up in a trade deficit because of the way we negotiated treaties.
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>> let's -- that was mr. ross, the commerce secretary. let's bring in john harwood. >> tyler, we've got a situation with president trump where his agenda is right now stalled out, trade is one of the things that could give him a chance to recover. let's first of all look at the agenda that has stalled. you've got the travel ban that the president started out advertise term with, that was halted and the health care bill. that failed. you've got fbi and senate investigations of russia, sean spicer is addressing those from the podium right now at the white house and 38% approval rating for the president of the united states. that's extremely low by historical standards. he does have opportunities for recovery. let's look what those are. first of all, next week he hopes to get neil gorsuch confirmed to the supreme court, even if it that takes mitch mcconnell invoking the nuclear option and doing it by majority vote rather than getting 60 votes to break a
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filibuster. you have the potential for new infrastructure policies that the president would put in place. you've got the trade policies and president is signing executive orders this afternoon. it's still a little bit unclear exactly what the trade policies are going to be and how hard or soft they are going to be in relation to his campaign rhetoric. same is true on infrastructure and you have tax reform. that's the huge wild card that the market is watching, how low can the corporate rate go? what loopholes will be taken away. that is like trade, like infrastructure, huge question mark out there. one more thing we've got to mention, april 28th, the government has to find a way to extend government funding or we could have a shutdown and that would come on the 100th day of president trump's first 100 days in office. >> john harwood. thanks investment. will concerns over trade and trump agenda derail the rally that we've enjoyed through the first three months of the year? thoughts now from ron insana and
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michael farr, also a cnbc contributor. i don't think he's in washington. i think he's in naples, florida. i can almost bet that. >> come on down. >> ron, i'm going to start with you. frankly it's a little premature to declare the trump agenda stalled. sure he's had setbacks but there are an awful lot of big policies out there that are still seemingly very much alive. i asked gabrielle santos whether this rally she pointed to is the stronger momentum behind stocks and whether that momentum can endure trouble with the trump rally? >> there are a lot of folks who make that argument, given that the economy started to rebound in october of last year, the city group -- city economic surprise index started to rebound in august of last year. job growth has reaccelerated and
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the economy seems to be gathering momentum ir respective of policy. some might argue that gridlock is good but we have to take into consideration that the president is fighting a multifront war, yesterday going after the freedom caucus, whom he needs to pass some significant legislation and at war with the intelligence community and press and democrats, under those circumstances, it makes it hard to pass policies going forward. >> but his question was, does that slow down the rally? >> it will. i think the icing on the cake in the rally was expectation that we will see tax reform deregulation infrastructure -- >> you think there's doubts to that. >> absolutely and the think the russian situation is an even bigger doubt in my mind. >> a lot going on. the tradeoff has been we heard people say corporate tax reform is going to be great, go straight to the bottom line. that bolsters the rally the concern on the other side is if we get into a trade war and you heard wilbur ross today. where do you stand with the trump's agenda on the markets?
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>> trump's agenda on the market looks like it's going to be a great agenda. i see it just as a tradeoff for monetary policy to fiscal policy. this market recovery for years, i can say whafrl you want, we have seen earnings growth but we've seen money shoved into this economy from the federal reserve and increase of our debt. now we're waiting for further tax cuts and more money to come in and we still kind of hang on every word as to whether markets should go up or not. donald trump is seemingly acting like the teflon don here lately in that he doesn't get health care done and not important, we're going to move on and markets seem to say it's not important. he gets accused -- makes a wiretap accusation, not important, we're going to move on. >> you seem to be saying here, michael that the underlying fundamentals and momentum is strong enough to propel the
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market forward even if the trump agenda can't. i got you right? >> no, i don't think so. i think that -- i think that the market is actually well exceeded the fundamentals of repatriation and everything else. there's risk there but we keep calling for this top that won't materialize and -- >> michael, where do you stand? do i commit money to the market or don't i? >> sure, on a case by case basis. i'm always willing to buy a cheap stock but they are harder to find. you've got to be cautious and find balance sheets that make sense that can endure when this drops. it will drop sooner or later. i don't think it will be a bad thing when they do. >> ron? >> i think it depends on why it drops and i do think we're lurching towards some sort of governmental crisis here. i don't think we're out of the woods. they seem to be intensifying. >> it hasn't hurt the markets yet. >> if you go back to watergate
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days as well, it took two years from beginning to end to have a significant impact. what started in those days as a small burglary -- >> we know, yeah. >> i think this could take that shape and then i think, if the market were to look through it would look through to mike pence and say, all right, if indeed something happened in that regard, mike pence is going to pass all of this stuff anyway, assuming democrats don't take congress in 2018. i'm taking it day by day, tweet by tweet to determine where we go from here. i'm much more cautious than in a while. >> we check those every day. >> indeed we do. >> thanks. >> happy birthday, ron insana. >> you tried to sneak away without us knowing. >> happy birthday, ron insana. >> the first quarter was pretty good for international markets and sima modi has the numbers. >> in the face of protectionism and populism, the global market picture looks commendable.
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the global index seeing the best start since 2013. a lot having to do with pickup and growth in these individual economies and paying off on domestic reforms what you're seeing in china and india and commodities, helping latin america. look at the move we're seeing in brazil. it's economies finally emerging from a recession and mexico, the posse peso recouped many of the trump related losses. onest best performing currencies in 2016, helping outperform the best quarter since april 2012. of course a weaker dollar a big factor. when you look at the emerging market dmeconomies. look at europe. it's fweting close to the mandate of 2%. that's fielding european equities the german dax, trading at multiyear highs and this is coming ahead of two key elections in germany and france.
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>> let's bring in our global fund manager of center stone investors. abe, great to have you with us. you run an a u.s. and international strategy. if i had to divide between the two, how would you allocate in the. >> we've been tilting more and more towards international, we tell people we're in the business of protection, not prediction, we're not trying to predict the future, we're trying to protect capital and that's why we focus purely on fundamentals and pointing us more towards nonu.s. markets instead of u.s. markets. >> some people will say why should i put money in international markets right now but your argument is actually that we're in sort of the middle phase of this reversion to the mean right, so there's a lot more to go in international? >> i think so. maybe really in the beginning phases. u.s. markets have been so much stronger than international
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markets for five or six years now as again from the bottom up, at center stone we find more and more ideas outside the u.s. and it makes sense. as you said, the u.s. market massively outperformed the international markets but now there's a steep valuation difference. i think the previous guest was talking about how the risks in the united states and that risk is also met by the fact that u.s. markets are trading in historically high multiples and we believe that the s&p is essentially add its at its intrinsic value. trading at significant discounts to intrinsic value. >> when you look at economic growth and inflation as you were pointing out, what about the policies from washington and impact on trade and a lot of these economies that are betting or reliant on the u.s. consumer? >> i mean, as long as people are worried about any of the trump fiscal policies or if you look at europe, i mean, the macro headlines dominate the news that
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comes out of the industry out of the region. you know, that acknowledgement is itself comforting to me. it means that people have priced it into the stock market and it's safer despite the negative headlines we keep saying. >> which markets do you like the best? >> we're pretty globally focused. we spend time in europe and asia. less interested in japan right now and we're still shying away from financials, center stone, we're pretty conservative and try to protect capital first. the types of companies tends to be good businesses that generate cash flow and have management teams that allocated the cash on behalf of shareholders for their history. >> thoughts on russia? one of the best performing emerging markets in 2016, gaining 15%, different story in 2017, having to do with the hope we would see sanction relief for
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russia out of the white house. what would you do there? >> in russia, we just have two rules, we like high returns on capital and like return of capital and i can't quite guarantee sometimes we'll get that return of capital when we invest in russia. we've been mostly -- i've never owned much in russia. >> for 2017, do you stay local or go international? >> for the next five years utility international. you have the case for currencies in your favor. that's a change from the last five years and i think we would encourage people to shift overseas. >> thank you. seema modi and abhay of center stone investors. >> we're finding opportunity just for you. your guest has three oil stock picks he loves with a bit of a caveat. plus, last weakek eric cant toxr told us the repeal of obamacare would pass. it did not. and holy horse power, president
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trump's ferrari is for sale. how you can buy it and why the seller is clearly hoping for some kind of trump bump. power lunch will be back right after this. [weather reporter]: governor has declared a winter weather emergency... announcer: soon, insurance companies won't pay for damages, that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims, into one focused on prevention with predictive analytics...
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because it is the last day of the first quarter we're digging up awesome and awful stats to help you drop knowledge at cocktail parties tonight. here's the sunshine stock of the year so far. it is power company nrg based in
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the energy capital of america princeton, new jersey, owner of power plants and solar and even coal and nrg is the best performer in the s&p 500 this year and also getting love from wall street, goldman sachs recently upgraded nrg earlier this week. certainly not all energy related stocks have been created equal this year. many stocks lost investors money this year but that is not dissuading your next guest from specific investing ideas. let's bring in mike kelly and senior analyst and you've got interesting names, mostly smaller cap. all three names all basically in the perm yan basin of texas? >> you guessed it, brian. >> luckily i've been there. why is it so more attractive you? honing in on a degraphic region? >> it's simply economics. you are spending the least amount of capitol out here to
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get the most reserves out of the ground. it's simple as that. commodity environment and commodity space lowest cost, highest returning producer wins. >> all of these names are down this year, 8, 12, 20%. has it been a frustrating time to be an oil analyst given the wild swings of the price of crude? >> i think it's been encouraging, we put out a 130-page capital efficiency report yesterday and the big conclusion was in a $50 world a lot of these guys make a very good living. so the names have been off with the commodity, commodity kind of peak in february of $55, all of the stocks have trailed off as well but we think that you really don't need much more than $50 for these things to work. as long as you stick here around this level, these names will perform very well. >> and there's a few you like and upgraded, i want to focus on
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a couple of specific names, maybe two or three, rsp and perm yan and ring energy. why are those two on your list? >> rsp, great company did an absolutely fabulous acquisition in the end of 2016. i think it's going to be a catalyst rich 2017 for them as they prove that this acre average they picked up from a private company silver hill may be the best acreage in the lower 48. guys will have to revise their value of what their assets are really worth. then ring, rei, the fastest growing small cap e and p, doing a new concept, drilling wells for only $2 million that are going to give you returns on capital north of 100% right now. the only got three wells under their belt today but we expect in the next couple of weeks you'll get an update with them with the next batch of wells. if those come in strong like the first three wells, watch out,
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three wells they are a baby. then your final back is callon. >> houston based company here, now have some scale, 55,000 net acres going to be one of the fastest growers in the permian and lower 48 for that matter and stocks pulled back and had a bumpy q4, valuation is right. >> sounds like a fed report week. thank you very much. we appreciate you joining us. have a great weekend. >> you too. >> travel, phones and tax fraud. all of them coming up in the good and bad and ugly. and a baseball game interrupted by a swarm of bees. story that's generating a lot of buzz next on power lunch. if you have medicare
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>> welcome back, time for the good and bad and ugly. blackberry is up 11.5% after beating fourth quarter earnings expectations for the sixth quarter. credit suisse down 1.5%, part of
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a dutch investigation vfing tax fraud and money laundering. they are cooperating and it is an ugly day for shares of xpeed i can't, telling the financial times that president trump's travel bans deterring visitors from coming to the u.s. and warnin warning it is asktding the online travel business. >> check out this season from a preseason baseball game between the padres and rockies in peoria, arizona. a swarm of bees descended on the field. players laid down flat on the ground until the bees went away. no reports of anybody being stung. it happened in the ninth inning so the game ended a short while later. >> weird. >> is that the strategy, to avoids being stung? if a bear is going to bite you want to lay down. is laying down -- bees cannot spot you on the ground? >> i don't know. >> the padres should be wearing the camouflage uniforms.
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>> bees are blinds and they fly around -- >> okay. >> clearly health care isn't the issue that has a chance to unite washington any time soon. what about fixing the nation's crumbling infrastructure? can we build bridges between people? instead of to nowhere. we'll ask former house majority leader eric cantor next p a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.
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. i'm courtney reagan, the death toll from a car bomb that exploded near a shiite muslim mosque in northwestern pakistan rising to 24 with another 100 wounded. the explosion occurred as people gathered for friday prayers. the pakistani taliban now claiming responsibility. u.n. secretary general antonio gutierrez visiting a refugee camp and called on the international community to do more to help the city civil dwrans as the battle for the city rages on. >> this is the moment in which the iraqi people and people of mosul need the solidarity of the international community. that solidarity cannot be denied because those soldiers that we have seen around are fighting
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for our security everywhere in the world. >> few americans are dying from cancer, according to an annual report released by leading cancer researchers, death decreased from most types of cancer between 2010 and 2014 but did increase for cancers of the liver, pancreas and brain and uterus. >> thank you. we are 90 minutes from the closing bell on wall street for the week and month as well as the quarter. let's check on where the markets stand right now. the dow is down 60 points. we should keep in mind the s&p is on track for the biggest quarterly gain since 2015 and nasdaq only index in the green. take a look at oil right now, very slightly higher brent on pace for a 7% decline for the quarter. >> we're focused on rebuilding america and have reporters spread out across the country focusing on different areas of infrastructure. the big question is how do you pay for all of it.
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kayla is live in tyson's corner, virginia. we were talking about that area earlier, looking at how the president is trying to get the private sector involved. kayla? >> reporter: i'm not your hometown here in virginia. toll roads like these are being eyed by the administration and they are public/private partnerships where the government raises debt to fund part of the project and private investors fund the rest. the u.s. is considered an emerging market of sort in this type of investment. most often favored by canada, australia and singapore or western europe but demand is increasing and so are the funds looking to invest in insfra tukt tour here. just this year, private equity seeking to raise $31 billion to target u.s. infrastructure alone. big names like carlisle and black stone are among those interested, on to have of $68 billion that is earmarked for n inf infrastructure deals.
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gene spurling says while the funds may be there, there might not be enough projects to fit the bill. >> the greatest challenge is there's only so many projects that easily lend themselves to the kind of toll revenue. and i think -- that pays back private investors. >> and they need to be paid back. they have specific criteria. they want to earn a return north of 10% in exchange for putting their money to work for several years but they want to be able to get it back within ten years and often times the government wants leases of 30 or more years and then of course they want to have a steady revenue stream why toll roads are so popular, they pay a few bucks and that money goes back to investors, one question that will be raised by the administration and as the projects come to the floor, how many toll roads do we need and isn't it the taxpayer that ends up footing that bill? >> it's all good questions,
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thanks so much. so could infrastructure be the way to build bridges between democrats and republicans and republicans and republicans. eric cantor writing in an op-ed, the best path forward doesn't fit into the rigid ideologies or extremes of either party. progress requires incorporating the best ideas of both parties. eric cantor joins us now. good to have you here. >> good to be with you. >> is there any hope we won't see the same thing when it comes to infrastructure spending? is there enough by part anship? can we get some of the members of the freedom caucus or freedom from reality caucus as some like to call them, to get involved here? >> i think infrastructure by definition is going to be a bipartisan issue. as we know the majority in congress republicans were trying to get health care done and will attempt to get tax reform done most likely in a partisan way in similar doubt, president obama pushed through obamacare just on
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partisan votes. when you take infrastructure spending, that's not something subject to the procedure known as reconciliation that afords a lower voting threshold. it will need 60 votes in the senate. you're going to have to have bipartisan support. my point in that piece that you referred to is yes, i think it is a less partisan issue. i think it is a national concern. i actually sit on the bipartisan policy center's council and we created a coalition -- i want to maer more about that but hold on one second. don't take this the wrong way. your credibility with me is a little weak at the moment because when it came to health care reform, you were just on before the veet that never happened and you told us it would pass. in case you don't remember, here it is. >> what if it doesn't get done? do you believe the president's forecast that the people who voted against it will lose come next election? >> it will get done.
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it will get done. >> you're not even entertaining the idea it doesn't? >> this is a great way issue. >> you said it would get done and they were afraid of the president, that donald trump was going to breathe down their necks and it would be impossible to tell the president no. what happened? >> i think what i said first of all, what most people reasoned would say, the republicans are in charge, there's a majority there, they should be able to get this done. they pulled the bill, didn't have the vote to preserve the ability to go forward again. i'm hopeful they'll get that done but i do think the president is looking for and should be looking for issues that he can go and see and get across the finish line. as you've suggested during this great way to bring the country back together, set as a national priority. i don't care where you live or what your party affiliation is or how old you are, everybody enjoys and benefits from -- >> is corporate tax reform also one of those issues whereby
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partisansh partisanship could come into play? >> not so sure about that. if you remember during the campaign, you hardly ever heard hillary clinton talk about needing corporate tax reform and lowering the rate. there's pressure on the left that won't allow for democratic politicians to come forward and say, we need to help our businesses so they can create more jobs by being more competitive. i'm not so sure you're going to see a lot of bipartisan support on that but infrastructure is a different story. >> here's the think, what i think a lot of maybe the freedom caucus hears is sure, spending money is bipartisan. we're back to a congress that wants to spend a trillion dollars on infrastructure. is that just the way -- that's what you guys do when you get there? >> i'm not there. i don't have to own all of that. what i'm telling you is, the president in his address to the joint session of congress, he did say he wanted to see a
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trillion dollars of infrastructure spending and did not say specifically there would be a trillion dollars of federal spending. that's why this group that the coalition on infrastructure, business, trade unions and the rest say there is basically a four-part formula, number one, let's say infrastructure is a national priority. two, you've got to have a robust and consistent commitment on the federal level but you also have to have private sector, the way kayla was tyson's corner. virginia has been a leader in p-3s, to make sure we have the necessary tools in place and fourth to go about and make sure the state level as well as the federal that you're reducing the political risk that's surrounds these types of investments. >> eric, should paul ryan step down as speaker? >> no, he shouldn't step down as speaker. no, listen, these are beginning days and these are slow. this is the republicans becomes used to being a governing party
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and as brian as you know, we've talked about. republicans just by nature are those people who believe in limited government. there are some who believe in less than limited government. and so it's an uncomfortable mix and it's trying to get that balance right. i'm actually continuing to say that that majority will in the end be able to deliver. it's just going through growing pains. >> do you think there's libertarians disguising themselves as full-on gop causing some animus in the house? >> i'm sorry? >> do you think there's libertarians that are saber rattling inside the gop? >> i don't know the definition of what that is versus what a conservative republican is. i think what unites the party are people that believe in limited government and there is a proper role for government, although limited. what it does, it should do very well and stay out of the way. i do think that's a unifying sense and that goes back to the point on infrastructure because
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there is a proper role for government to be there and steady sort of way and commit. >> i'll ask you one question about tax reform, eric and that is because before you said that health care was a gateway issue and said they can't get off of this and get to the major -- they can't do that and not accomplish health care without getting to the major tax reform part of the agenda. do you think the tax reform will happen? you made it seem like if they couldn't get health care done they lose the momentum -- they wouldn't have the privilege of getting tax reform done? >> the reality is does momentum does begets momentum in that town. no question about it. it was a setback for sure, come on. in order to effect tax reform, they are either going to have to pass a new budget to set up the instructions for tax reform in this 51 vote environment or they are going to have to use the existing infra -- the existing reconciliation instructions that are already out there for health care.
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that's a very difficult proposition on either front. so they are going to have to find a way to regain momentum and i know we've seen the white house, heard them speak today and you've had it on on this show about wilbur ross talking about gaining momentum on trade. obviously, the regulatory rollback is a constant momentum push and i think one for the markets as well. >> we've talked about that a lot. thanks so much for joining us, you were a good sport today. we appreciate it. >> you hear it every day on this network, apple and amazon, rising to new highs, is it even news anymore? news is supposed to be unusual. we'll talk more about that on "trading nation." plus if you invest in either of the stocks, apple or amazon, might be able to afford the president's ferrari coming up for sale and is definitely got a little trump dollar aspect of it. we'll tell you the story of trump's ferrari coming up. yes?
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the president's 2007 ferrari is going up for sale this weekend and could bring in more than a quarter of a million dollars. robert frank joins us with more. >> we know the president liked to live large and had a large
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number of cars. this is the third car that used to be owned by donald trump ha has come up for sale since he started running for president. this could fetch the most. auctions america set to sell his 2007 f-430 fehr rary between 200 and $350,000, that would be more than two times the average sale price for this type of car at action. it has actually declined in value in recent years from the original sale price back in 2007. this would have sold around $200,000. trump was the original buyer of the car. he bought it brand-new in 2007, perhaps to celebrate what was probably a really good financial year from him. remember the apprentice show was going strong and at that point the real estate market was just on fire. but he's actually not the seller of this car. it's unclear who the current owner is but the big question will be how much of a trump premium this ferrari could fetch. a lamb borg genie sold for
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460,000, over the typical sale price and 1998 cadillac limousine was sold for more than four times the place, auctioned in england getting $68,000. this ferrari is expected to be sold tomorrow in ft. lauderdale around 5:00 p.m. so people are telling me if there's a really big trump fan out there, that likes cars and likes the president, this could go well over $300,000, guys. >> robert frank, thank you very much. >> thank you very much. >> tech topping ult a great first quarter but will tech stocks keep making you money this quarter and beyond. today that is david sea burg and stacey gilbert with susquehanna. you'll hear in just a second, pointed out that your analyst is amazon is 12.50, are you guys
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that bullish across the board on technology generally? >> yeah, i think it's fair to say there are a lot of positive indicators here in large broad cap tech. let's go through it. we have the sentment indicator, moving in via options flows and our analyst issue highlighted being one of the top in amazon. from a delivery standpoint these tech companies are delivering on earnings, according to facts set, beat eps targets and 69% beat revenue targets, better than any sector. you can't have price appreciation without growth on pt earnings side and they are showing it. third and this is the interesting wild car, d.c., as you talk tax reform, the tech sector has the potential to benefit the most. if you look at the s&p 500 tech sector, $700 billion is in cash overseas, just getting a fraction of that and using it whether it be buy backs or
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dividends to have the company's further grow all have the potential to be a positive for tech longer term. >> first off, everything cool tech no lodgeally? >> everything is cool. >> we'll get to that in a moment. >> that was a rigged vote. tech in general, tech is going to continue to work and everything stacey just said is exactly why. you look at anything like amazon, mention that because they have the highest price target on the street, groceries will drive it. a great study here to the grocery side of it and that's going to be the biggest driver of revenues going forward for a company like amazon. so really bold up there. apple launching a new phone and street numbers in our opinion are way too low. need to go higher and china going to be a massive tail wind there. china usually a buyer of new designs in particularly and i
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look at it and say, look, semis are completely not dependent anymore on the pc market. you've got autos and data center build joults and you've got spending growing at 20% a clip a year for the next five or six years. i think there's a massive tail wend wind to technology. >> your comment about last night will be explained in ten seconds. >> it should be. >> you're still ticked off, aren't you? >> i am. >> sore loser. >> melissa is calling you out as a sore loser. >> i love you, you're the best. >> explain what the heck we're talking about this. >> he lost repeatedly and said it was rigged, said the competition was rigged. check out more trading nation at cnbc.com. coming up next, we'll explain what that was all about when we talk about a stock and trying t all of the details nextd on
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earlier, we showed you the sup shine stock of the year so far, and now for the rain. target. shares was retailer not only the worst performing or one of the worst in the s&p 500 this year, thee worst performing major retailers dow 3%, but the biggest competitor, walmart, is actually higher this year. so target earns the inglorious distinction of the disaster stock of 2017 so far. there's time. >> speaking of losers, check out what happened last night in the championship round of fast money madness. >> and the winner is in a
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squeaker, rich ross. >> there we go. >> ordered a trophy. it's ready. can you pass it down? >> let's bring the guy -- >> you see the glee? you see the glee in which she handed over the trophy. she couldn't have been more elated. >> no, we prepared the diet, and i had to cross it out with a sharpie and e we were prepared for you to extend the winning streak to 12 and take the series. >> i could tell on the face you danced as you pranced out of the studio last night, happiest you've been since that poopoo platter we went out for dinner six months ago. you liked that. >> you can only say poopoo as it pertains to a chinese buffet.
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i thought you were thrown under the bus, and i even like you. >> you know i love you, always tried to curry favor with you. >> another heisman reference. >> thank you. at every crossing. one of the days we'll embrace in a hug and it'll be beautiful. >> 600 pounds of love >> talk target, guys. >> let's. >> it's way we talk about a lot. the company still committed to the store strategy. what do you think? >> the store strategy is to end prove the stores and lower prices. i mean, that's great. you have to spend money to improve the stores and lower prices are going to kill the margins, which, by the way, already are lousy. i think this is a at least a two year story to turn this place around. you know, and, plus, you got the border adjustment tax. the b.a.t. tax. it's like pin number. it's not pin. it's like the movie that says it
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drives me crazy when they think he's a person. same thing. you have no idea what i'm talking about, but, again, i tell chris -- >> i know you do. >> mcc, love you. she has no clue. >> i get the point, though. >> they couldn't believe how much they cut guidance. 2018 eps was $5 point 20, taken down to 420. that's catastrophic. play a math game. you love math. take the midpoint of 380 and 420. >> i'm playing jeopardy, what is 4? >> 4. what is the right multiple for a company with decreasing revenues and slowing -- basically slowing comps? i'd say it's probably 12, 12 times 4, mel. >> 48. >> my god, is there a delay in what i'm saying. that's 48. you could make a cogent argument
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that the right price of target trading at $55, given the target they find themselves in, a $48 stock. >> you made a terrible mistake. >> do that all the time, go ahead. >> nobody was in the band, but there was an english pioneer in the 1600s. >> cultural pioneer. >> 300 years from now, the guy in zombie was a cultural pioneer. >> agricultural pioneer. >> hey, mcc, what's going on? what's at the opera? who's playing? >> who's playing? >> i was supposed to see eugewu last night -- >> of course you did. >> we changed it to easter weekend. >> doing the entire album. going to be great. >> see you later. >> fun for me, later for you. >> later.
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guys, what were the first colors discontinued? j one in 1910. >> kicked out of the 24 box. >> dandelion.
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the one from today. >> others and curiously, and i believe unfairly many of the ones kicked out have been yellow color. >> maze and lemon yellow among them. >> we need a color called locomotive. >> thank you for watching "power lunch." >> "closing bell" starts right now. ♪ hi, everybody, i'm kelly evans. >> this is the last hour of the first quarter of 2017. for those at home keeping score, tech and health care are the big winners so far this quarter, and financials which were once among the best are now the laggards rs as a matter of fa , as a matter of fact. how to portion yourself. >> president trump expected to sign two new executive orders on

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