tv Power Lunch CNBC April 24, 2017 1:00pm-3:01pm EDT
i trimmed a little today but it's a big earnings quarter. i'm going to wait for something to fall out of bed and i'll buy it then. >> you have the 97, 98, 99 coming up. back to the conversation before brokerage and asset management, i like it. >> thank you for joining us. >> thanks for having me. >> "power lunch" starts right now. yes, it does, melissa. thanks very much. we'll see you in a minute. i'm tyler mathisen. welcome, everybody. here is what is on your menu. election elation. markets around the world rallying on the back of that first-round voting in france. has a major risk been removed from the market, or is it a case of not so fast, folks? tax package has been promised. what will be in it? and will congress be able to avoid a government shutdown ahead of president trump's 100th day in office mark on saturday? and forget united, folks. there is another airline
outrage. this time it involves a mother, her baby, a stroller, and an american airlines attendant spoiling for a fight. "power lunch" starts right now. ♪ this time baby i'll be bulletproof ♪ happy monday, everybody. i'm brian sullivan. as you heard your money is making you money. today a nice rally for stocks. the three major averages having their best one-day gains in months. it wiped out april's losses. once again technology is leading, the nasdaq hitting new highs yet again. financials a top performer. bopped yields go up. and here's one notable stat for you, the etf that tracks the french stock market on track for its best day since august of 2012. all right. here is what else is happening this hour. another big week for earnings as you heard melissa and the group talk about, about 100 firms already reported so far. of those 77% have topped estimates.
just 16% have missed. the supreme court, meanwhile, declining to hear gm's appeal of a ruling that allowed faulty ignition switch lawsuits. investors may have expected that. the stock is little changed. and jimmy choo putting itself up for sale no potential buyers reported yet. michelle? >> i'm michelle caruso-cabrera in paris, france. thanks so much, brian. as you heard tyler say, markets are rallying today because of what happened here yesterday. emmanuel macron will face off against marine le pen who is anti-euro. the markets are rallying because they think they already know the answer to the election two weeks from now, the final round. are they right that macron has it in the bag? we will explore coming up on "power lunch." tyler? markets rallying today, in some cases to record levels. witness the nasdaq. on those first-round results out of france, let's check in with
bob pisani at the new york stock engs change. up, up and away, bob. >> reporter: indeed. we're holding up. look at our market internals. these are very strong numbers particularly for a monday. 3-1 advancing, new highs are expanding. over 200 at the new york stock exchange. volume, call it moderate heading to the heavy side. haven't seen that in a while. the volatility is collapsing. take a look at the vix, the fear gauge. up around 16 on concerns about north korea and even on the french elections just collapsing down to around 11. and it's not just the vix. look at global markets. the global markets and the vix are telling us there was a risk premium associated with the french elections in europe, japan, and the united states. look at the s&p up nicely. we're about 30 months, a historic high from the s&p 500. part of the risk was clear ly i the banking community. stocks rallied big time over in europe and they're rallying here big time particularly the money center banks but even the regional guys, sun trust, financials also rallying.
there's other things going on not just that. we're having generally good earnings seasons. illinois tool works had a great number today. they raised their guidance. honeywell raised their guidance on friday. stanley black & decker as well. new highs at 3m and rockwell collins. we're right in the middle of the trading range on the s&p. we've been here since really the middle of march, around 2300 to 2500. my sense is we'll stay here a while until we've resolved the other issues like the earnings situation. so far i've been very impressed with earnings season. guys, back to you. >> as have the markets. bob pisani, thank you very much. we'll see you in a bit. and now back to where all the action was over the weekend, paris, france, and michelle. thank you, brian. a lot of action. you can see the european markets in particular moving very strongly today. up 4.5%. rejoining us here today, the same guest friday, lex paulson
who worked for president obama. you're still working with macron's campaign. you were nervous on friday. >> very nervous. >> he passed the test. >> it looks like the pollsters had a good night this time. >> are you convinced he can win now? are the polls right, they say he will beat her by 20 points. >> we're taking nothing for granted. we have 15,000 active volunteers on the ground going door-to-door convincing people who might be tempted to sit the next round out, how important it is. >> is that one of the concerns the polls look like he's going to win by so much a lot of people will stay home? >> exactly. complacency is our enemy. >> so the markets are rallying sharply. he supports the euro. marine le pen doesn't. they think that's going to be much better. also, when it comes to it labor law, he wants to reform the labor laws of france which are famously tough for business. tell us what he did while he was
working for hollande. >> france has, as you say, one of the toughest and strictest regimes around hiring and firing compared with its western european neighbors. three major impacts. the first was a slight liberalization of hiring and firing for employers in a very difficult and tight labor market. second was a liberalization of hours negotiation for workers who wanted to negotiate working evenings or working on sundays. the third was a stimulative effect. macron developed terms for auto transport -- >> buses. >> in hard-to-reach rural areas that created about 10,000 new jobs in france. so these were some of the measures that emmanuel macron pushed. he's shown he's willing to take risks. >> labor in france is famous for its power. sometimes we've seen them take
general managers hostage. we've seen this multiple times so they can extract more benefits. is that mess ang going to work here in france? >> the economy has changed dra matcally in france over the last 30 years, it's no longer an economy driven by workers in factories but independent art i sans, entrepreneurs, people working flexible hours. offering universal unemployment insurance for the first time for independent artisans and freelance workers, new incentives to hire people from the most porous and least favorite areas of france, and he is equalizing the differences in social taxes. >> everybody says, actually, regardless of who wins two weeks from now, marine le pen or, particularly with macron, they're not going to control the parliament. so actually maybe they're not going to get anything done and you just have a france that stalls. >> sure. in a normal year, building parliamentary majority would be near impossible. as we've seen this is not a
normal year. a single year that propelled our candidate to number one. 15,000 candidates who submitted their applications for our party. macron is getting new people involved. i think you're going to see a parliamentary majority. >> that's a big statement. guys, back to you. macron is 39 years old. he's never held office. a year ago he announced he was going to run. it sounds similar to donald trump. they hate it when you say that here because they don't think there's a lot of similarities between donald trump and macron. coming from out of nowhere that's what he did. >> and establishment clearly, right? >> exactly. >> he's an establishment guy, not a renegade. he's an investment banker. >> right. so, yes, it's a great point. we've asked one of his spokespeople earlier this morning that very question how do you shake off what marine le pen will say about him which is this it guy worked for the current president who everybody really dislikes.
and her point is, listen, when he disagreed with francois hollande, he quit. he want ed to do even more liberalization of the labor markets and hollande didn't want to let him. and so he left. he was very much worked very hard to disassociate himself with the current socialist party and thus far he seems to have succeeded. >> michelle, we'll be back with you shortly. thanks very much. michelle caruso-cabrera. nearly 70 stocks in the s&p 500 hitting new 5 -week or all-time highs. names like mcdonald's, walmart, home depot. disney to name a you few of the big hitters. so the question now is, is there still time for investors to take part in this rally? let's bring in the equities chief investment officers and george maris for global international equity strategies with janus capital. that's a long title. did you do anything this morning
in reaction to what took place in france overnight? >> we did, tyler. we've been long-term bulls on equities, have been overweight. we added to that this morning into the open. >> and what kind of stocks were you adding to that overweight? >> we put out a piece called hope on sale and although the market's done nothing all year, tyler, what's really happened is the hope trade, the cyclicals, the financials have come off while the kind of stable growth companies have gone up. we've gone into large cap value portfolios which own a lot of cyclicals and financials where we think that's where the real upside is. and valuations there are still very cheap. >> george, did the french elections turn out the way you expected them, and did you do anything differently this morning in response to them or what you see spinning out later this week, health care reform, possible news on tax reform and other areas.
>> they turned out how we hoped they would turn out. a constructive message, one that's more pro-european, promises structural reforms that are positive for the french economy and that was very helpful and clearly anticipated and i think a positive backdrop to investing not just for france and europe but global areally. and so as a consequence we became even more constructive on equities particularly on the value side, the more cyclical. i have strategies that are able to play around all over and clearly right now equities around the world look very interesting and so we're taking up positions in asia as well as europe when the results are starting to come through. >> tied to our market, why is the dow up 214 points? less chance of europe being broken up which means more earnings consistency for american companies? >> i think there's two things.
the first you've taken off the bad news that could potentially happen with a le pen win. let's be real. we've doubted pollsters so it's been hard to tell where they've been but they got this election spot on. and what they're forecasting for the second round is a big mac ron win, which is truly constructive. it takes a whole breakup off the table. you don't have to worry about a financial crisis, a global recession, that's positive for equities around the world. that's very helpful, firstly. secondly, this means that rates will start picking up, equities become more attractive as we get rid of the uncertainty, and you can look at the economic picture around the world not just in the u.s. but also in europe, japan and asia that's really pos it tiff and it creates a better backdrop all over. >> i guess, steve, the question is this. sort of similar to what i asked george, if you're a 60-year-old close to retirement, you have a 401(k), should you wake up today, hey, i'm going to buy more american and global stocks because the french election
looks good? is it just that simple? >> well, no, tyler, it's not. if you're a retiree, you have to have a financial plan. we made -- we make our recommendations against that plan. so people ought to be diversified. we're overweight equities for sure. that doesn't mean you put everything all in. there will be times there will be pull backs but certainly the france outcome helps, as george said, takes away the tail risk. and we think on balance political risk now tilts to the upside. we have aca, we have the tax thing coming. we think that will be positive. and you've got growth improving. we've got a target on the s&p, a long-term target of 2,500. we up that to 3,000 about three months ago. we think the next stop three years out could be 3,000 on the s&p. so that's still quite a bit of upside. >> gentlemen, thank you very much for your help today. we appreciate it. steve auth and george maris, we appreciate your time. let's get now to dominic
chu. >> shares of way fair and the reason they have taken a dip in trading. amazon -- reports amazon will launch a new furniture seller's program that's going to be featuring members of the furniture marketing group. and that's the reason those shares are lower. wayfair a big seller of furniture online. we'll keep an eye as they progress. brian, down about 3.5%. >> just needham done amazon ton airlines. for the chu family, the mathisens -- >> we'll just fly everywhere on whatever that hypothetical airline would be. >> i just hope they have night flight attendants. thank you very much. we will head back out live to paris, france, with what is next in the battle for the presidency. first a looming government shutdown and a record of his first 100 days in office. could this week be the biggest
week yet for trump's presidency? and, if so, what can we expect? hi, i'm mindy kearns. it's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. knowing that the most important goals are yours. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing. we, the entertainment-loving people, want all our rooms to be tv rooms. because those are the best rooms. because they have tvs in them.
a nice rally on the street. the nasdaq hittinging new record highs. we were just within 17 points of nasdaq 6,000 earlier in the session. the dow looking for its first back-to-back gains in about a month. some stocks to watch, hasbro rallying about 6%. the toy maker comfortably beating profit and revenue estimates. demand for digital gaming more than double the profit from its entertainment and licensing business. panera bread under pressure adding 10,000 jobs by the end of the year in an effort to expand delivery service. and we're watching fitbit, reports a wisconsin woman suffered second-degree burns after her tracker exploded. dom chu brought you this news. wayfair dropping on reports amazon is launching a furniture program. the possibility of a government shutdown, president trump's first 100-day mark rapidly approaching all this week. and it is, to put it mildly, a big week in washington, for washington and the kcountry.
ylan mui with the latest. run us through it, ylan. >> reporter: the big sticking point are the negotiations to keep the government open has become the border wall. the white house is demanding any bill include money to pay for it. donald trump tweeting saying the border wall would keep drugs from pouring into the country and poisoning america's youth. but for their part democrats say there's no way they're funding a wall especially since mexico was supposed to be the one to pay for it. white house chief of staff reasons priebus did open up wiggle room. he suggested money for planning and perhaps border security more broadly might do the job. lawmakers are trickling back into town over the next few days after the easter recess and avoiding the shutdown is top priority. the trump administration is hoping for a win ahead of his 100th day in office. we're waiting, of course, for the major tax package to be revealed wednesday. and this will be a set of broad principles and priorities not a detailed policy document. as of this morning key lawmakers
had not seen a draft though they did emphasize they'd been in communication with the administration. the treasury department has more than 100 staffers who have been working on this plan. secretary steven mnuchin had dinner with president trump this weekend at his hotel in washington, but no word on what they talked about at the dinner table. back to you. >> oh, to be a fly on the wall there. thank you very much. appreciate it. well, tensions with mort korea continue to rise. one country in particular on high alert, south korea. finance minister speaking out about protecting the country and trade relationship with china. more on why this week could see more saber rattling from kim jong-un coming up. with this level of engineering... it's a performance machine.
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north korea has become a geopolitical hot spot and south korea is stuck in the middle. the finance minister on how his country is trying to protect it self. >> reporter: north korea may seem like a purely geopolitical threat but for south korea its economy is being hit as well, something the finance minister addressed during our conversation today. >> many people are worrying about this factor and risks there. yes, there are some but as far as the impact on the economy is
concerned i believe the so-called geopolitical risks have some limited impact. >> reporter: and south korea builds out its defense the f.a.d. china is retaliatinretal. well telegraphed in the credit default chart that shows more traders are betting on a default. the minister says those concerns are a bit premature. lastly on trade, the finance minister expressing concerns around president trump's protectionist stance saying, quote, we're worried but cautiously optimistic. the country is working to bring down its current account surplus with the united states. brian? >> all right, seema mody, thank you. rick santelli tracking the market and the impact may not be as great. i have to imagine what happened in france has caused a bit of a -- i think the technical term
is commotion. >> reporter: yes, it definitely did. the key issue is how long will this commotion last? and you're so right. if you look at yields in europe, the italian and the french ten year closed down close to double digits. italian down eight. french down about 11 basis points. but bund yields were up eight. and our ten year looking at interday and two day is up only two right now. it's been as high as 232. the point is let's go back to the chart we use a lot in december of 2015, that is the time 30 days after that chart we settled at 2.27. this is key. which side of the level we close on could give us a lot of clues along with the dollar index. when rates are up in this country many would suspect the dollar index would do better but it's been all about the euro.
and if we look it at the two-day dollar index pay particularly close attention to 99.17. the 2.27 for the dollar index. why? look at early november chart. you see the last bottom that was 99.17 from march 27. key technical areas, traders are paying close attention to. tyler, back to you. >> rick, thank you very much. it's a car, it's a plane -- no, it's both. it is called the kitty hawk and we have the details coming up. but first to michelle in paris for the latest in the bat the for the french presidency. michelle? >> we're going to explore a lot more about the coming round two in two weeks and the implications and what can we learn from the data about what might happen two weeks from now. we'll explore the urban rural divide we've seen it in the united states, in the uk when it comes to brexit and in last night's vote here in france as they battle for the presidency here. don't move. we're live from paris, france, on "power lunch."
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good afternoon or good morning depending on where you are. i'm sue herera. here is your cnbc news update this hour. the trump administration announcing new sanctions against syria. it's part of the ongoing crackdown on the syrian government and those who support it. manufacturers believed to aid president assad's use of chemical weapons. it comes as president trump met with u.n. ambassadors at the white house today. the group discussing those hot spots such as syria, north korea and iran. a teenager indicted in connection with threats of extortion, money laundering and
other charges. his parents say he suffers from medical problems including a brain tumor. former president obabarack obama holding his first public event. he spoke with students at the university of chicago. and there you heard kenny g surprising passengers onboard a delta flight with a saxophone performance all in the name of charity. it happened on a flight from florida to los angeles this weekend. the musician getting inspiration to play from his seat mate who lost a daughter to cancer. there's word he raised more than $2,000 by doing that impromptu performance. and he went all up and down the plane, coach, business, first. melissa, back to you. >> wow. what a generous guy. sue, thank you. and talented. >> especially with the bad airline news. >> it's good to have good news. a check on the markets right now. that strong rally on the street is still going and is worth noting that on the nasdaq we hit
record highs and we're about three points away from session highs for the nasdaq and possibly a new record as we close in on nasdaq 6,000. seeing fresh records for google as well as facebook. regional banks in particular outperforming financials overall. it is higher by almost 3%. united community bank and glacier among the winners on that index. to michelle in paris now. michelle? the first round of the consequential french presidential election is over, it's emmanuel macron versus marine will le pen. what's going to happen? joining us is sophie, the paris bureau chief for the economist. good to have you here. >> thanks for having me. >> our previous guest was so relieved the polls were right because he's working to get macron elected, and he's pretty sure that means macron is going to win in two weeks.
is he right? >> look, we've all been bruised by polling before. we did our own poll and we did our own data crunching before the first round. all candidates came where we thought they were going to. our data suggests emmanuel macron will be elected. once again we feel nervous about this sort of information or polling data so, you know, we'll still have to see. it certainly looks that way. >> so the markets are rallying very sharply for all of these reasons we've just talked about. it looks like he's going to win. it could be wrong, as you say. part of why they like him, one, he supports the euro, two, he wants to change the labor laws of france. what does he propose when it comes to the famous 35-hour workweek or when it comes to what age people can retire at? >> he's actually moderated some of those proposals, the 35-hour week. in the past when he was an economy minister in the government here he was critical about the french 35-hour working
week and, in fact, had to go back a little bit. backpedal on those when he drew up his program. he doesn't want to modify it. he wants to devolve to firms, let companies negotiate directly with employees and work out how to organize working time. the idea is to have france be more flexible without changing the law. >> urban/rural divide that we teased in the break just like the united states. the further away you get from paris, the more likely you are to vote for marine le pen? >> it's pretty direct the correlation. if you look at the charts you can see you literally 10, 20, 30 kill ometers -- >> i'm sorry. we have to go to steven mnuchin and the daily white house briefing. >> the office of foreign asset control imposed sanctions in response to the april 4, 2017, sarin attack by dictator assad.
sanctions 271 employees of syria's scientific studies and research center. the syrian government agency responsible for developing and producing nonconventional weapons and means to produce them. they have targeted these 271 employees because they have expertise in chemistry and related fields or have worked in support of chemical weapons programs since at least 2012. today's action less than three weeks after the attack is one of the largest ever executed by ofac. we are more than doubling the number of individuals and entities sanctioned since the start of the syrian conflict pursuant to syrian related executive orders. these sweeping sanctions are intended to hold the assad regime and those who support it directly or indirectly accountable for their blatant
violations of the chemical weapons convention in u.n. security council resolution 21118. the united states is sending a strong message with this action that we will not tolerate the use of chemical weapons by any actor, and we intend to hold the assad regime accountable for its unacceptable behavior. the treasury department together with the department of state and our international partners will continue to relentlessly pursue and shut down the financial networks of any individuals involved with syria's production or use of chemical weapons. i would comment that recent willy we had sanctions on north korea and iran and will also continue to add to and monitor those as appropriate. with that i'd be happy to take a few questions. >> is this the only round of sanctions we can expect against
syria in the wake of the weapons attack or are you considering more, and are you considering the possibility of sanctions against russia for not going far enough? >> we don't comment on the specifics of sanctions that we are going to do in the future but, again, what i will tell you is these sanction programs are very important. they're very effective. and we will continue to use them to the maximum amount available by law. >> on the budget, is the border wall a deal breaker for the president even to the point of a government shutdown? >> i'm not going to comment on the specifics of that but what i will say i was in a meeting this morning with director mcilvainy and other senior people. the president is working hard to keep the government open and addressing various issues. >> can you tell us what these sanctions do, what is different today than was different yesterday before opec? >> the sanctions are enormously
important so by identifying 271 additional people these sanctions, as you know will both freeze assets if there's assets here and prevent u.s. entities from doing business as well as the sanctions have enormous impact with all of our partners around the world. >> mr. secretary, we're not doing think business. >> the administration is trying to grapple with the paris climate agreement and come to a decision on that. do you support staying in paris or coming out? >> i would just comment we're asking discussions and that's where i'll go on that. >> mr. secretary, are you awarp of any american companies doing business with those individuals? >> the president said last week there would be a tax reform proposal wednesday. >> he did, indeed. widely reported. >> i imagine that surprised you a little bit. what can we expect?
>> let me just first say, you know, i've been working with the president for over the last year on his economic plan in regards to creating growth. the president is very determined that we can get to sustained economic growth of 3% or higher. we're working on tax reform, regulatory reform, we're looking on job creation. on the tax side i've been meeting with the house and senate on designing things. we'll be coming out with more details on wednesday. >> i know the specifics of the broad details will be delivered wednesday. without getting into specifics what does the middle class gain if there is a simplification but a loss of deduction, how does that help the middle class? we've been clear on what the president's objectives are for
tax reform. midd middle income tax cut. the average american should be able to do their taxes on a large post card. business tax reform, business taxes competitive and we expect to bring back trillions from offshore. >> the question i have, this announcement on wednesday, it doesn't sound like we're going to get the package, something you said couldn't be accomplished by august. >> there will be details that come out and it's worn we're talking about it and will move forward. a couple more. yes? >> let's follow up on what major is asking you.
for those not clear about the 271 employees are you suggesting by looking at the sanctions there are u.s. companies or they have holdings in the u.s. or they would be traveling or doing business that we're actually freezing or barring? >> i can't comment on the specifics of the sanctions beyond what we release but i can assure you that when the u.s. puts out sanctions, they have impacts both here and throughout the world and we wouldn't be doing this if we didn't think it was impactful. >> mr. secretary, would you say that simplification of the tax code or cuts would be the first priority? you've mentioned the post card -- >> both. >> what is the first thing? >> on the personal side for about a middle income tax cut and simplification. we're about making them competitive.
again, what i've said before is the tax plan will pay for itself with economic growth. thank you, everybody. nice to see you. >> an appearance at the daily white house press briefing announcing sanctions on 271 syrians who work for a chemicals company in response to the attack. mnuchin commenting on tax reform here saying the average middle class american should be able to do his or her taxes on a post card. again, this all ahead of wednesday's expected announcement on what the administration wants to do with regard to taxes. president and ceo of the atlantic council. we brought you on ostensibly to talk about france. we just heard from steven mnu i mnuchin making a rather surprise appearance talking about this. if we had to frame out the one
or two key issues, for our audience what would you pick? >> let me hit serious first. the tomahawk strikes and i said, it would be counterproductive and the administration will not gain any leverage at all. we heard there's more of a strategy. there's going to be more to come and that's going to give the u.s. more leverage and it makes us look more professional on the world stage. the credibility on the world stage and how is he going to be a global leader. and then france, i think what we just had was the first part of one of the most important elections in europe since world war ii. and everyone is relieved because the first round of this went well and they should be relieved.
it's a great outcome. that's the half full outcome that the markets are looking at. there's also a half empty outcome you had 45% voting for the extremes. the majority of the young -- the majority of the young voting for the candidates in the extremes. and so two weeks from now though the conventional wisdom is that macron will win. i don't think you can rule out a low turnout that would favor le pen and some of the voters from the far left candidate and the conservative candidate who are also anti-eu and are upset. >> fred, you lived and worked in europe for over two decades. can you help our audience explain -- i'm asking for a friend, me. here in the united states, we tended to have the older voter go for trump. the sort of older antiestablishment voter. in france it's the opposite. why is that? do they feel the eu is damaging and damning their job prospects?
>> a simple statistic, 25%. 25% are unemployed and have been for some time, triple the german number. double the uk number. and if you look at the brexit vote, young, under age 24, voted against brexit. they wanted the uk to stay in. now it's a more complicated vote in france. it's not just anti-eu, it's also antiestablishment. the young just aren't as optimistic. >> fred, would you say the prospect of a marine le pen victory is just as great as it was prior to this first round of elections or is it an outlier scenario? >> i don't think so. i think you have to go with the betting line macron wins. i think there's a lot and we're going to have to watch things over the next few weeks very
closely. >> did i hear you say 45% of communities or precincts went for le pen? >> no, 45% of the voters either went for the far left or the far right, so le pen or melenchon. >> anti-eu. >> anti-eu. but what's important is macron is also not from the two establishment parties. you've had not one of those two parties winning. he now has to go to parliamentary elections in june. he'll put up 550 candidates but had is new territory. le pen in 2012 won one district in all of france. this time she's won half of them. you'll have a much better showing in the parliamentary elections in june. that hasn't been factored in yet. >> she won half the districts this time which certainly, if you want to draw the analogy to mr. trump's victory, you would say, look at the map of red
versus blue, and you see a lot of red all around the united states and pockets of blue. >> well, i think that's absol e absolutely right. macron himself is giving trump credit for giving him a boost because a lot of french voters don't like trump very much. some people are saying we've hit the peak of populism in europe. you saw that in the dutch vote. in germany things are turning against the far-right party. i would take a deep breath first and take a look at the economic statistics and the disquiet with the eu. >> all right, fred, thank you very much. fred kemp. is a big buyout ahead in the grocery business? moving on the report. all the details next.
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the reason why is because of an ft story that says that according to sources briefed on the matter albertson's has or is exploring, rather, a possible bid for whole foods. again, that's according explore whole foods. that's according to a source at the if any times. this is interesting because we seen whole food stock go up by 16% so far here the other day. 20% over the whole months. it could be aac sigs candidate for somebody out there. we know that onthat partners pushing for a review. all of this happening with whole foods now. there is a potential bidder out there in the form of albertson's guys. >> the talk had been that kroger would go for whole foods. it's interesting to see the kroger shares moved up on the idea that it may not big the big act cyst here. you see the action in that
stock. of course dahm what analyst have been saying the only way to unlock is to unlock shareholder value here is to sell the entire company. >> you make a great point. remember it was last month, according to a bloom berg report that said that albertson's owned by server capital was looking forward to a potential bid with sprouts. most of these company s are in that organic high-end company. when it comes to whole food your talking 11 1/2. again the size of this is pretty massive. you're talking about a $12 billion acquisition at current market prices. >> thank you. a tense situation on the plane, this one involving a flight tenant, a mother and her
raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. welcome back to "power lunch" everybody. another airline incident. united not involved this time, this time american airlines.
a flight attendant going after a mother with a baby. phil lebow is live in chicago with the latest. >> tyler this video came out over the weekend because the incident happened saturday. here's the video where basically it's an altercation between a passenger and a flying attendant on american airlines flight on saturday. the flight attendant has been removed from duty. over the week we got a note from dough parker the ceo of the airline saying situations like this are not easy for team members or customer. it's important for us to take responsibility. in this case we accept that responsibility completely. american is still investigating this incident. it comes two weeks after we saw this video repeatedly over the course of five to six days, this was the passenger being dragged from the united airlines flight. the lawyer represents this passenger also represents the
passenger in the american airlines's case. he is on squad car box talking about offer lines need to be held accountable. >> the fact is they've been favored and their favored in congress and wherefore they go. and we're help wills. >> he's saying there should be rules implemented. the airlines stocks are not moving low as in part. a lot of people look at this incident as one incident. until we see changes that's when we'll see museum with the airlines stocks. >> already. another question l aviation store involving a flying car. tell us about it. >> it's not a car. the video was posted this morning by kitty hawk. and it's a start up that's backed by larry page, and they're still developing this. it's almost like a green goblin from spierd man. there's no sail date yet for the
kitty. a report was issued to the "new york times" saying i'm excited i'll be able to climb on to my kitty for a flight. it's not a car but an ultimate that light aircraft and that's what it's being.commed as. >> that's coal. >> no flight attendants. >> wire timing couldn't be any better. if you're looking to sell your home, that story's coming up in the second hour of "power lunch."
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welcome to the second hour of "power lunch." i'm melisa lee two hours until the "closing bell" ring. the election turn out just as the record thought. the dow is higher by 1%. politics effecting stocks. hopes are a deal will be done. we got earnings this week. google reports will those derail the rally or keep it doing. >> your monday rally continues to role on.
the dow is up nicely. hitting another record high today. getting close to 6,000. financials among the big movers today, mar gone stanley, jp, j goldman sachs all moves. many of them also trade here, the nyc receiving big moves in chairs of total. santa fee michelle. >> hey brian not everybody was happen here in paris. younger peop younger took to the street last night. we talked to them to see why they are so unhappy. tyler back to you. >> thank you so much. the dow up 5% in the trump administration so far three months in and the president and staff hadn't been shy being mentioning that. eamon live in washington.
>> that's right. they're on the kout down to the first 100 days here in washington. a few moments ago we had the treasure secretary drop in on the daily press briefing that sean spicer hold in the briefing room. they're expected to announce on witness, but he did commit to an aggressive economic strategy. here's what the treasure secretary had to say. >> i been working with the president for over the last year on his economic plan in regards to creating growth. the president is very determined that we can get to sustained economic growth of 3% or higher. we're working on tax reform, we're working on regulatory reform, we're looking at job creation. >> when sean spicer took of that podium i asked when whether or not the president was ready to
rule out on the tax plan deficit itself, a lot concern on capitol hill that those may not be included in the plan. spicer not committed to ruling that out when the president announces some broad deal of the plan on wednesday. this white house has not been shy being talking about the trump rally. that's in contrast to what we've seen from other white houses. take a look at the numbers, the dow up 5.2%. s&p 500 up, and naazdaq at 7.9% just as president trump took office. going back to the election day itself, the numbers are more impressive. this is something they feel good about and they're not as worried as the other administration have been if you talk about it the
dow doze up. between tax reform and a potential government shut down it is a consequence consequential week for washington. jimmy and nick johnson. welcome gentlemen both of you. jimmy on the tax plan that's going to be released apparently later this week, what do we know with respect to whether it will be deficit-neutral or not? >> it certainly does not sound like -- especially with what the press secretary said, this was going to be a deficit-neutral plan not for economic growth. the only thing this thing is going to be deficit neutral or approaching that is if they include economic feedback. it's still going to lose money especially if they're not willing to role out those pay fords which doesn't seem like they're going to be. to me it seems like a plan of
cutting tax rates. paying for it is a lot harder. >> and you get stuck in between a couple of thing. one, would be to take away from businesses the ability to deduct interest that they pay for business, and on the other hand the big corner stone has been meeting expenses of capital investment. you do moboth of those and you t a big hole to fill. >> i think the bigger surprise is every time you suggest something about these deductions you're in a lot of people angry at you. and another important thing to note as it was reported last week don't look for specifics. this is going to be a hundred-foot level of principles on tax reform. >> it's going to be like a sthop siz of a summer of a schedule of
general principles. >> nick i take your point that a lot of tax that are me negotiable has kon stitch wentbone them. and it is one that the president came from, real estate. >> if you look at the deductions are real estate very tax complicated. the president himself used these thing of thing when he was a real estate developer. i think it'll be difficult to go after those in any meaningful way. >> jim the markets as we begin this segment, indicates gains as the president took over. largely on anticipation it would seem that good thing are going to happen. what if the good things don't happen and what do you think the markets' reaction will be? will it be obviously muted? but if bad things done happen that can be good too right? >> right. i started off my career starting
financial markets. it's risky to say why the market's doing any one thing at one time, but i think it's reasonable to say that a component of this rally has been a lot of expectations about fisc fiscal stimulus. i think at the very least it's not going to be as big as some people were expected, which is a trillion dollars in spending, i don't think that's going to happen. if your bullish cased was based on the bullish stays for stimulus i think you're going to be important. >> when do we lose hope? >> well listen first you're talking about next summer -- >> we been talking about the same stuff now for months and nothing has changed. >> it's been fantastic i get to talk about it month after month. >> it goes round and round and you try to throw the kids off.
>> i'll tell you this, i would kprard narl surprised. i cannot bring myself to get my head around the idea that we're not going to get a tack package by early 2018. a republican party is there to cut taxes, they cannot do that. that would be a real shocker. >> final thought nick, how do you grave the first 100 days? >> i'm a journalist and i'm not putting a grave letter on that. we've written about what he's published. the supreme court i don't think can understate that. there's been regulatory things they've done, but a lot of rolling back and regulatory regimes. i think it's partly the stock market but let's get back legislative, we don't have obama ke obama carry repeeled. we don't have tax reform so. >> i'll wrap it here, nick,
maybe there hadn't been the big win on tax reform, aca roll back or other things, but there is a business friendly climate and i think business can presume the trump administration isn't going to do things that are going to hurt businesses. >> that's what my colleague wrote today in his report. it's how president trump talking about business and regulations it's different. >> gentlemen thank you very much. appreciate it. let's get more of the big money rally. on the floor of the new york stock exchange where they'll singing the praises of france today bob. >> doesn't get my better than this. it was some risk premium in the market and hadn't moved. the s&p hasn't moved. 5 point trading reach the whole time. the market internal 3 to 1. that's good for a monday. new highs over 200 year at the
new york stock exchange. trending towards the heavy side and vics the volatility collapsing here. when was the last time you saw the transport, mid-caps, and the big caps up up more than 1%? i can't remember when. and the new highs, look at the leadership, all of the sectors are represented. you got the industrial, you got to tech crowd with microsoft. you got the restaurants, new highs with mcdonald's. you got united healthcare new highs, walmart and disney new highs as well. back to you. thank you bob. let's get back to david on the news alert. >> the proxy five between aiconic will continue after what has been ex tensive discussions
of reaching a settlement. they've been talking for last couple of weeks trying to resolve this proxy contest which was scheduled to take place on may 16th but has been delayed. they pushed the meeting back to the ends of may of 2017. talking for a last couple of weeks about a deal which icon ik cou would have gotten two of the the nominees and iconic saying hey, at that point you would have had eight directors who joined it had board in the last 15 months with five nominated by elliot. member elliot had one three directors previous. according to a letter they made public, they have not been able to reach any sort of a deal. in fact they say that elliot, the discussions have not produced a settlement as elliot has repeated demanded an ever-expanding lit any of
settlement terms. first we had a detailed understanding in frill 16, then we spent discussions and reached appear agreement on april 20th that elliot was prepapered to sign. the man who run elliot was told two days later when elliot reneged. and you can imagine on and on. so what we have now melissa is the possibility of this continued proxy fight that has taken the job of our ceo who engaged in that strange letter he sent to mr. singer a few weeks back that was unauthorized by the board and shown to have poor judgment and the board having dismissed him. the fight itself, despite what has been efforts at a resolution will continue. back to you. >> will make the earnings report due out i believe leader this week david much more interesting, especially since
iconic has been cut two times. >> yeah, it does melissa and the counter argument from iconic is simply, we're working on all of those fundsmentals and b, if we were to grant you those or you were to win them you'd take control in some way. we'll be watching it closely. we'll see when they set a new meeting date as well. >> david thank you. transport in the meantime for eight and 20 on the day above. the rally today signaling another higher for the market. brian bell ski and paul christopher. gentlemen good to have you with us. brian we'll start with you. 2050 is your base case scenario, that's low from where we are right now.
why? why don't you believer -- the price action is strong. we seem to whistle toward every land line out there, government shut down blooms we don't have elections yet. >> we'll say this is that the trump rally so to speak is about rebuilding confidence and kick starting growth, but we need to see the numbers hit. it seems to us when we talk to our institutional clients around the world and our private clients here, they're very biased in their company as we're going get everything or nothing. these actions back and forth last week was a period we didn't think anything was going to be pushed through, now we have news things are going to be pushed through on wednesday. let's see how these companies reacts to the tax cut and how they'll begin to grow their business again then we'll adjust. we're going to get a better opportunity to buy stock as little cheaper.
we're heading into a period where stocks are typically week, number one. number two i'm not going to say somebody will go in there -- >> why don't you push me? i was going to say good job because you past your target, you took heat for it. now it's your chance to thumb your nose at the world. >> i'm not going to do that. it's better to be humble in the like. we'll have an opportunity, we're not going to raise our numbers because stock is going up. we tend to think that in the long perspective america and north america is the place to be. we think the volatility around the world is going to be in creasing. on a short-term basis should you be taking the stock today probably. and in europe today, yes. >> paul your position? >> we agree largely with what brian's saying. we think the mark has overshadowed itself here in the
u.s. in europe relief rallies typically do move this way where you get a big response and people realize later, oh yeah we still have a lot of political trouble. the extreme polls in france 40% of the vote, the establishing parties, only 25% of france. >> bryan are you surprise it had treasury here in the u.s. aren't responding more sharply. we're still below 2%, and you would have thought giving the position that the snap back reaction would have been strong? >> yeah we think so too. it's time for us equity people to win, i think there's a big short squeeze coming in bonds later. in the year it's going to be fantastic for us equity investors. we're so moe momentum driven in
the long-term. you got to pick your favorite pitcher and when the market goes up be an active investor. >> paul in terms of where you see the value right now? brian said earlier, take the profit in european stocks, would you do that? >> many of your clients are still underwait in europe, so we'd be advising them to average in over time. we think the gross prospects are still good and the political issues are going to be stretched out over a period of time. still a good time to take advantage of early earnings approval there. in a general way proefrls may be need to be rebalanced at this point and looking to play that money back in in places where your underway, perhaps in europe averaging against. or maybe some of those cyclical stock where is you invested a little bit. we still like those cyclicals
going forward. >> gentlemen thank you. brian, paul christopher. here's whatst what's coming up on the show. good news for your home sellers. and a good week for earnings in particular technology. let's get back to michelle in paris for a look at what happens now. >> hey brian one of the candidates in this election was a candidate similar to bernie sanders with a lot of young people that supported him. they are very unhappy with the results in the first round. what are they going to do in the next round? could be crucial. power launch don't move. we're live from paris. right after this break. break let's go, she's a dog.
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lunch" i'm michelle carouso-cabrera live in paris france. the voters here return to the polls in two weeks to chose between two candidates. it will seem like the difference between the two are very stark. marine marine he pen is anti-europe. and there's manuel who's willing to embrace france. there's another candidate and they were unhappy with the results of the lengths. they see the choices as terrible. the reporter of medical land
chon talked to the street neill upon the first round of results. we saw clashes in the street with police. you heard frank kemp talking about the use in france, three tim times per sent. that night complement by 45% of young people in this company voted for eu parties. they are very fraus straited. when it comes to bernie sanders, we spoke with him last night. here's what they told us. you're going to vote? >> no i'm not. >> whine? >> because i don't want to chose between something that's bad and something worse. >> my count is not economically for what i want. he's the economic -- mary le pen
she's against women's rights, and gay's rights. i can't vote for something like that. >> it's making everyone tense because in both ways we're all screwed. >> that's the opinion of young people in paris. we should point out when you get out of the urban centers marine he pen does well with young people. coming in 26% of young people voting for marine le pen. once again can she get some of those medical shon voters who supported communist. key question for the second round. a big rally we seep on the wall today, financials the bigge biggest sector winner of 2%. a look at how naazdaq has done
under president trump, that's next. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi® got involved very early on, and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa. i really believe we only live once, and so you need to take an idea that you have and go for it. you have the opportunity to say, "i've been part of the creation of over 27,000 units of housing," and to replicate this across the entire african continent.
spiders come into that region they will be destroy. the trump administration is considering sending more troops to that region. firefighters battling an apartment building on the university of maryland hyland park. no word of the injuries or fires caused. an autopsy revealing that actress must ran died from cancer but no type. the actress played on "happy days" found dead in our home on sunday. she was 56 years old. workers trying to remove a 60 year oak tree. the crews are cutting down the tree because it has been unsafe. believed to be one of the oldest trees in the country. white oak trees typically life
for 100 years. so it doubled that number. that's the news update. brian back to you. >> i wish they would leave it alone. >> it's unsafe and near the church so if it falls. >> leave. bring back the pandas too. more pandas. >> i did pandas the other day you just missed it. >> thank you. financials rode the trump bump after the election. you know that, but do you know which stocks have been the best in that run or the worse? these stats in today's sector not mission. >> that's right. the sector's almost up 24%. the sector's still underperforming the overall s&p about 2% versus the s&p 6%. s&p global and moon knees sold more than 24%. both stocks fell shortly after the election on concern that is trump's policies would ruse the
need for debt ratings. the firm's biggest review knew components but the stocks are getting a boost because the investment's doing well. john nato pointing to a strong balance sheet as well as hopes from de regulation in the trump administration. and of course the losers, goldman sachs taking the most. this after the stock fell po a low level. region bank a fiveth third bank corp over down to 3%. back over to you. >> thanks very much landon. the oil market closing for today. checking in with jackie at the commodity desk. >> oil prices are a little lower to kick off the week. we were briefly over 50, 52 was the session high, and 4903 a
test of that lower leg was the session low. the market is tentative right now, waiting to hear more about the opec agreement but no concrete answer until that meeting, which is still a month off. at this point the approach is probably going to be a pattern but right now the buy is town the downside. back over to you. >> jackie thank you very much. ? just a little over a month the famed opec production deal with expire. there are two questions, number one, will opec in russia be able to extend it. number two why hasn't been able to raise more prices. joining us hondy mckroef. why isn't this deal which we had so much ajid over before. and oil prices barely moved, how come? >> the u.s. inventory was so high and you have the return of
u.s. production. the production has come back as it expected. the question is will this continue? i think they are l roll it over. -- >> roll it over being till november. >> yes. but the question i would say it's not really a choice of saying the 50s. or the alternative is do you want to be back in the 30s. i think they made the decision because they want to firm the floor at 50. they're not happy at being sub-50 but they're not happen at $27 either. >> i think it's a push because they can't afford to have it go below? >> i think it's something interesting we seeing in the market. any time we have sub-50s we have countries saying look we're committed to the deal and extended it had deal. if we were consistently below 50
-- >> would rush be in favor of extending? >> they have the decision to extend but didn't really make a decision. >> so what happens over the -- are we in sort of a 46 to 56 range for the rest of the year? >> we look pretty range bad. if we think about going into the year end we'll will b moving into the low 60s, but as far as on the map something beginning on in north korea that'll be something negative. or something in terms of gop political risk, we seem stuck in this range for now. >> this oil has wanted to live for 50 years. what's going to be -- you have a black swan right, event, something 245 you're watching that could change the game? >> may 19 elections in iran. if rue hand knee is not reelected we think that could be very bad for the future on a
nuclear deal and potentially bring back the deal on its on. >> so connect the dots on that, if we get the hard liner winning, it probably means oil prices goes up because iran production must then come down? >> iran will not be able to place their barrels because sanctions return. >> we sent michelle to france for the french connections, tyler to iran may 19. see you there. >> thank you. let's head back to melissa in paris with more on what's on tap. melissa. >> i like how you guys make plans for me. so why are we so focused on the french elections? because what happens here is crucial to the entire project of european union. we explain coming up after this break on "power lunch."
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french election that happened yesterday. next round is in two weeks. joining us right now, analyst. and you're back here today as we have the outcome. the rest of europe looks at france and says the french voters have the future of the european union and the euro in their hands. is that stark? is that what the choice is amongst the french voters. >> i think on the concept you have brexit and the choice of the pro-european candidate who wants to leave the zone and the european union. it's clear this is the future of the steak yes. >> even though there was someone who was the only one that was pro-europe. >> yes, amongst the four candidates that were -- that could -- right exactly. prourine but only to the extent
he wants to continue with france and the european union, he doesn't want to go towards further european interrogation. none of the establishment candidates got anywhere they were completely eliminated, that was a big first for france. that means that both of the candidates, emmanuel he cone and le pen, if they end up in power are they going to have enough people in parliament to execute? we see donald trump in trouble now with the same issue? >> right. the french parliament was set to have french elections just after the presidential elections. this time that won't help because neither of the two are expected to make it anywhere close to majority so whatever happens they will have
difficulties governing or will have to form some type of coalition. >> the markets think mccone has one the way they're acting, are you confident that because the polls are right the first time, they're going to be right two weeks from now? >> yes. that's a good sign they were right the first time. but if you look a le pen's chances, enable to win the second round you need to collect voters in the second round. and marine's ability to do that in the second round is limited compared to mccole who is an essential candidate who's going to be difficult. so he has a better chance definitely. >> thank you so much. >> thank you. >> all right. it's always the case guys, opportunities out that winning will be the easy part for whoever ends up for president because then they have to
governor. >> michelle thank you. we got a record on the street. the s&p 500 up by 1.1%. we head even higher, "trading nation" is next with answers. if you think about selling your home you may not find a better time than right now to put it on the market. "power lunch" will be right back. so you miss the big city? i don't miss much... definitely not the traffic. excuse me, doctor... the genomic data came in. thank you. you can do that kind of analysis? yeah, watson. i can quickly analyze millions of clinical and scientific reports to help you tailor treatment options for the patient's genomic profile. you can do that?
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welcome back to "power lunch" i'm john harwood in washington. we're all waiting to see what the president announces on wednesday about tax reform. dow jones is just reporting and given a direct tiff to his staff to come up with a plan that produces a 15% corporate rate. that would be more than 150% production in the current 35% rate which is one of the highest in the world. that's consistent with what donald trump said throughout the campaign. he said he was for a 15% rate. house republicans say they can't get that low and to pay for it they have to get that rate down. the border tax administration has givings president. it was also reported donald trump says he doesn't worry so
much about the deficit. this is consistent with what administrators told me. what nick mulvaney and mnuchin told me last week that it will pay for its with of course as $2 trillion for it. so we will perhaps get specific details on wednesday. we were told there'd be principles but dow jones reporting he's going to try to stick with the 15% rate. >> thanks john. supply and demand in the meantime alive and well in the housing markets. there aren't much homes for sale in the neighborhoods. that's creating what sellers call the stronger sellers market ever. diane in washington with the story. >> demand for housing is really high especially at the level as millennials start to move into their home-buying years. the spring listings are not enough. not even close. we went to a sunday open house
in burr bank yesterday, it already had three offers before the real estate agent opened the door and when he did more than 100 people came through. >> i been selling real estate for 25 years and this is the stronger sellers market i've seen in any entire career. >> the house is listed at $180,000 which is considered entry level in the l.a. area. one young couple we spoke to had already lost out on another home. >> we actually bid over asking price and yet it went way over asking price, i'm guessing, with waving contend gents been one of the things. we couldn't waive contend gennesys such as we like the place. >> that's the big issue for first-time buyers, they don't have a lot of cash. they cannot waive the appraisal contend gin cities.
homes to do are not selling as high as the sales prices. price is king in this market. back to you. >> where's all this cash coming from tyler? >> i don't know the millennials. time now for "trading nation." on a day like today what a day to talk about the mac koe markets and your money. chad with washington crossing advisers. it's like the movie "rock key 6." no matter how many times this market gets punched it keeps coming back up. do you see a time where we're becoming fundamentally valued or are we here now? >> i agree brian, value does matter. we're expecting 17 1/2% pe market at this point. gtp to market cap, also from a historical perspective somewhat elevated. we would be somewhat more
balanced westbound one's portfolio when it comes to the s&p. over the next 12 months we're looking at a 5 to 6% tote tum return. i think it's time to be cautious. >> all right when you look at your charts is that what you do? do you see as a rule nesht in shock prices? >> we don't see it. evaluation's a matter and this market has it. i think the tell here is in the small caps where you have the russell 2,000. if you look at how this index has traded over the last few months it's been range bound, never really broke down. it held 1340 support and fwhou it's taking over leadership role again. we see signs of it inflicting hieger with the turn in equity prices. as it turns higher we think partition's in the market and we
a.mazon, google, and microsoft all higher. what do you watch for? our lead analyst, mark, great to have you with us. your bullish both stocks. which is the biggest question mark in your mind with the report? >> melissa, i think it's amazon. there's two issues here. one is the length and duration of the investment cycle, who the
company ask known for investment cycles, and they got marginal declines, could be an area of disappointment in the outlook, and second is when they printed the short fall, the cloud revenue was light as well as the margins. we'll have full impact of the price decrease, and that could be another potential area for decision appointment. >> price target of 900. your competitor raised price target today to 11250 from 900. some of the points are growth in prime internationally, aws is major drivers here to 1250. >> look, i, you know, long term, remain a long term bull on amazon. i pick the spots when to get aggressive on the sock. there was a correction in the beginning of last year, super aggressive them. this is not the thyme to get aggressive in amazon. switching gears, talk about google, a stock largely overperforming.
the setup is interesting. this is one of the stocks with the likelihood of estimates to post the print. >> upside comes from where on alphabet? you have a 1025 price target. what do you see? >> in terms of the estimates themselves, sometimes it gets ahead of the skis on the name, but there was a couple disappointments in six months, mar gyps came down, traffic acquisition cost to the revenue cost started to rise, and there was no share buybacks. the market is tipping negatively on the three factors, and we won't be negatively disappointed on the three factors. on valuation, it's close to market multiple, adjust for the cast. people come around to this story if they can show margin stabilization, and if they start repurchasing, they have the fire power to do that. >> concerned about advertiser pushback in terms of ad placement on channels like youtube? >> yes, but, melissa, that was a temporary issue.
frankly, it was the debate on facebook and ability to market accurately campaigns. that was six months ago, a great couple weeks' headline issue. no impact on fundamentals. google does not allow problems to fester. there's ways quality improvements to implement at youtube to resolve that problem quickly. i don't think it's going to be a material issue. >> sounds like you'd buy alphabet in the print, but not necessarily amazon, is that right? >> that's right, correct. >> okay. mark, thank you. good to see you. >> thank you, melissa. >> check please, and an announcement about a very special edition of "power lunch" coming up after the break.
whether for big meetings or little getaways, there are always smiles ahead at holiday inn. we're on the clock for 2:00 p.m. thursday on cnbc bringing you the 2017 stock draft, eight teams, two rounds of picks, 50 stocks available in this year's draft. it is going to be, and i hate the word "epic" because it's overused, but this is going to be an epic event, tie alreayleru ready? >> draft day for the nfl and stocks as well. slou >> mad money is a part of it, jim cramer, should be interesting. >> they will be the the analysts. >> yeah. >> michelle?
>> hey, guys, telling you about news crossing, le pen is doing a live interview, and she's going to step down as leader of her party. she says shements to do it to unite all the french people. we think this is because the party has been controversial in the past, considered when her father was running it, to be anti-semitic, racist, and she has very much tried to soften the image of the party. yes, she's been critical of immigration, muslim immigration, but the de-demonization process has helped her get more and more voters, and this move announced may be part of the strategy to win two weeks from now. >> does she risk losing the core of support from within that party, or will they vote for her anyway? >> reporter: i think she's got a very, very loyal core group of supporters. think of what we saw, for example, with trump supporters who even know when you break
dawn the favorability numbers, talk to people who support trump, they are positive about him despite a lot of the failures in policy thus far. she has a core loyal base as well. >> all right. >> thanks, michelle. >> mic check. final sometimes said albertson's could be making a bid for whole foods, of course, been on target. we did see an intra-day spike in whole foods shares. see how that will pan out, but hasbro had the better of matel in recent times. they were down 32% in the past year, and hasbro up 60%. why? nay have the star wars toys, and they outsold for the first time in memory, so interesting stuff
there. >> it is. mic check, great news in france, i suppose, it's not over. we have a greek debt repayment in july, bond market worries, europe a source of news and intrigue and remains so. >> every time you think you figure it out, you don't, in europe or elections. thank you for watching "power lunch, and "closing bell" starts now. welcome to closing bell, and i'm sara eisen in for kelly evans. nice tie. >> thank you, she chose it. stocks soarsing, and safety trades, a selloff there in light of the results of the french election, but could a baeg weak in washington, d.c. rerail the rally? talking about th