tv Power Lunch CNBC June 19, 2017 1:00pm-3:01pm EDT
that's ultimately where it's headed good dividend support and buyback. good presence in every area of the economy. this is such a good name here. i like it. >> pretty good monday for stocks the dow jones industrial average hitting another new all-time high ahead by 114 points. that does it for us. "power" starts now i'm michelle caruso-cabrera. here's what's on the power lunch menu who is on the menu cook, bezos, na della. many of the biggest tech ceos are meet with trump at the white house. is it going to be a friendly gathering or about as comfortable as a weekend with the in-laws. mine are lovely, by the way. is amazon just getting too powerful which retailers could be the biggest losers all that plus jobs and the rise of the robots. the ceo of one of the world's biggest producers of industrial bots tells us what he's seeing and why he's manufacturing in america.
"power lunch" starts right now >> thank you, michelle your money just keeps pushing higher and higher. the dow and s&p hitting new all-time highs tech roaring back as a top performer. energy lag a bit loyal prices falling today overall, though, a good day for your investments and your money. straight to bob fisani with more on why there's a monday filled with optimism again. >> and we are at new highs for several reasons. let's take a look at the new high s&p 500 and the dow jones industrial average new highs because the breadth of the market is widening out last week, tech stocks were losers many losers on the month not anymore. apple, alphabet, microsoft, facebook when apple is up 2.5%, that's a huge mover for the s&p 500 also, broadening several banks have been moving up in the last couple of weeks
even new highs comerica and many of the trust banks like state street, northern mellon. then industrials a whole swath of the big, big names. illinois tool works, honeywell, 3m, caterpillar, ingersol-rand you have aerospace, boeing, lockheed and raytheon. what's the story here? last week the story was about rotation seeing money going into banks and transports and small caps. and money was generally going out of tech and consume are discretionary health care was strong today, slightly different story. money still going into banks in the small caps but the tech stocks are moving as well. you get those big leadership groups in tech and health care strong, you start dragging in other sectors like bank and transports now a really powerful rally. >> and we have one bob, thank you from wall street to washington, many of the top technology ceos meeting at the
white house right now. modernizing the government's technology infrastructure. kayla tausche is at the white house with more. >> reporter: it's a little bit of a tense relationship between technology and the white house the industry in many of the companies here today have been critical of the white house's domestic policies but they'r big vendors to the government. they sell a lot of their services to the administration and that is what they're going to be discussing today we saw many of those leaders walking in for this meeting that is expected to get under way the leaders of alphabet, ibm, microsoft, akamai, adobe, qualcomm the list goes on many would not say anything when i asked them what they hoped to get out of the meeting and what roles their company could play in shaping those the ceos of mastercard said they were looking forward to the discussion on cybersecurity. they specifically acknowledged that, yes, his company does a
ton of business with the u.s. government they are hoping to advance the government's move to the cloud and to secure much of its data but when i asked him about this discord between the west coast, between technology and the trump administration and his assessment of the white house so far, here's what he said >> overall, we're excited to engage we're looking forward to the progress we can make and, obviously, from maybe a bit of concerns to start with. me and many of my fellow tech ceos are here to do a great job today. >> are those concerns gone >> i think we're excited to be here today and do a great job moving it forward. >> in addition to modernizing the government, there is one topic that's slightly off pieced and that's immigration reform. that issue near n dear to these companies and the white house's office that's putting on today's meetings acknowledge that was an olive branch that brought a lot of these companies to the table. >> thank you, kayla. let's bring in susie welch to discuss what this may mean
good to have you here, as always the timing of this they planned this before the announcement of amazon buying whole foods. but that serves as, you know, this big flashing red light. this is a company that donald trump had already criticized when he was on the campaign trail. and it speaks to this bigger issue we hear more and more of are the companies in that room today at the whourks are they too powerful is that going to be one of the topics of conversation today >> no, i don't think it's that i think donald trump is most t comfortable in these meetings with businesspeople. now the ceos who are there, they know they're going to hear about it from their employees. there's going to be some noise about them going and sitting down with donald trump i think that it's not -- he's not going to be criticizing them he needs all the friends he can get right now. since he loves business, this is going to be more of a conciliatory session they want business from the government >> this is an administration we all can agree likes their
friends and perhaps does not like the opposite of friends if you are a ceo and you publicly disagree with the president, or privately disagree, do you -- you have to be in that room, don't you >> you only have to be in that room today because it means revenue dollars for you. think about -- thegovernment i not like an episode of "homeland" with high-tech computers. probably only homeland security has this grade imagine the legacy system upon legacy system of the computers in all different bureaucratic parts of washington. these companies are in the room because they want a piece of that action. that's it. they have to be there for that alone. >> can we talk about amazon and whole foods and whether they are going to be -- we have a woman coming up later who says they have too much power. they shouldn't be regulated as a retailer they should be regulated as a common carrier like the railroads during the gildedainigild eed age >> i don't think we even know what amazon is going to become
are they the big store in the sky? when are they going to go into cars so that you'd buy your car -- what are you not going to buy on amazon? they are getting very mackey long before they became a part of -- amazon said groceries were going to be amazon's waterloo and-- >> and yet you sold to them. >> wanted the synergies and wanted to keep his job, which he did. >> i thought the regulators may sniff around this and people push back and said it's the retail, retail i want to be clear my issue is not with amazon's retail you have a new german company opening up it's not groceries it's their data. their knowledge. they own amazon web services they may be running some of the same cloud-based computing systems for the companies they are now going to compete against in grocery we don't know who is all hosted. so i wonder if the government plus "the washington post,"
that's jeff bezos' personal thing, but i doubt many people could separate them. >> i don't think in this administration regulators are going to be sniffing around. that's one thing that jeff bezos in the dark of night has to be happy about with the trump administration is that i think in any other kind of -- in the democratic administration, they would have to be really worried about regulators this is the one time they can grow like crazy without get -- >> that would mean separating what everybody loves to call deep state now turkish politics from 50 years ago versus what donald trump -- candidate donald trump said while he was running >> there's been a lot of differences between what candidate donald trump said. one thing that's very clear is they are from actions that have been taken is that regulations are being diminished and i've talked to business people who have said it's a whole different world out there now. they've been moving faster and there's fewer regulators who are clamping down on them.
>> that might explain why we see what the averages are doing. a lot of people will say, why did stocks keep rising when it looks like tax reform is problematic at this point, that they can't get things through. if you even just stop regulations, if you -- so under president trump versus what would have been president clinton, we know that regulations would have gone up and a lot. >> and i think that's why the averages are moving. there's an environment in small business especially but in all types of business that the -- that there's more possibility that -- i was just talking actually to somebody who is in a very new space which is food technology and there used to be a ton of regulations around creating food and meet in test tubes they used to fear the regulators enormously and now they feel like it's a whole new beginning for them because they'll be able to move forward much more rapidly. that's happening in a thousand different ways and industries. >> the economy is an upward spiral right now it seems that way. more jobs.
more spending. more productivity. but earnings are good as well. not taking anything away from the administration earnings are pretty good when you look at it and talk to jack. what do you see as the biggest risk what's your fear you sit around the dinner table. here's what i'm worried about. >> well, it could all come to a streeching halt with the midterm elections and the balance of power -- >> you think politics have that much pow over us now it's a sad statement. >> we could go into a stalemate and there could be no movement in any direction government could sort of shut down if there's not a majority and a lot of -- and i think the scarier thing or bigger geopolitical things because suddenly there could be the rise of, you know, say we had a month in the united states like london's just had. say new york had a month like that that could significantly change things in terms of the uncertainty. >> a freeze on retail and spending and everything else
>> entertainment industry. >> thank you, suzy are you sticking around? >> i don't think so. >> you don't want to hang out with us? >> we'll discuss it during the break. >> we liked you until just now >> i am staying. there is news outside of d.c. the world's largest air show under way just outside of paris. this is where all the big deals in aviation are made, and boeing already making some deals and headlines. phil lebeau in paris, or outside of it, with the latest >> a lot of those deals revolving around the 737 primarily. they introduced a new version of that that's on the commercial side. but today the defense contractors, they took center stage here why? check this out this is the f-35 built by lockheed martin soaring over the paris air show the first time we've had a chance to see the f-35 flying over an international air show outside the united states. it also comes at a day when lockheed martin is negotiating a
$37 billion sale of more f-35s to 11 countries. here's the ceo talking earlier today about the increased interest in the f-35 >> we have nine international partners eight international partners plus the u.s nine of us that put money in the front end and invested it. that's how important the aircraft is. and foreign military sales and flind and belgium and germany all expressed interest, and there are others lining up we're very excited >> there's another reason why marillyn and lockheed shareholders are excited look at lmt hitting an all-time high today and the f-35, rockwell collins builds the high-tech helimess t helmets the pilots in the f-35 use. he spoke about the demand. he said we're busier than ever more discussions and conversations with potential clients. the ceo says it all goes back to
the trump defense budget proposal of an increase of 10% >> it is really business defense business is improving, particularly the u.s. government business and so we're very busy with new opportunities. and i feel really good about our positions in the defense market. >> rockwell collins, like the other defense stocks today, also moving higher. guys, the bottom line is this. typically we see most of the headlines generated by commercial airplane orders here in paris this year, because of so much greater spending on military budgets, it's with the defense contractors. back to you. >> all right phil, thank you very much. well, there is a lot more still to come on the program as the reverberations from the amazon/whole foods deal continue to grab headlines. we'll talk about what retailers may be the most at risk and whether amazon is indeed getting too powerful plus, robots, jobs and the future of manufacturing in america. time warner making a big investment in snapchat and the interview you don't want to miss tonight, jim cramer
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experimenting in various markets. still any company that sells food sold off on the news of amazon's purchase of whole foods on friday. amazon's competitive forces, scale and efficiencies push prices lower at some point if not immediately, when it becomes a competitor in almost any industry grocery already has razor thin margins and lately has seen a period of extended deflation amazon's entrance is the biggest issue for smaller regional grocery and food manufacturers that cannot fight back with the same might analysts are split, though, on how and if it will hurt retailers like costco and target where grocery is a piece of what they do. walmart is the largest u.s. grocer it serves a very different shopper and has had success with online grocery ordering. if amazon can push prices low enough at whole foods to entice a walmart shopper in areas where both have locations and offers
online ordering and figures out fast, free delivery, watch out everyone the biggest problem for retail is if and how amazon uses the new 460 whole foods stores as additional fulfillment or pick-up centers. that puts amazon that much closer to your front door and that is what the retailer should -- >> that last mile. >> that last mile. >> they've got the remnants of what was web van way back when back during the dotcom bubble. i remember the photos of all the refrigerated trucks. they were going to deliver groceries back then. they've been thinking about this for a long time. bezos learned a lot from whatever happened or didn't happen >> they've been experiment with amazon fresh they've looked at it in london online grocery delivery is really hard. nobody wants to pay for it you don't want to pay for that convenience because amazon got us used to not paying for that it's very expensive to have a
fleet of refrigerated trucks the logistics of ordering and knowing exactly when you're going to be home if someone can figure it out -- >> don't they have a deal with instacart already? i would imagine instacart has lawyered up trying to fig are out, hey, we still have a deal here >> a lot of the folks i spoke to are aware of the insta cart but it's prohibitive to them folks shopping at whole foods are very concerned about quality and they also want to feel their own fruit. they want to pick out their own meat that sounds silly -- >> i think fresh direct solved that >> but online grocery is only 2% of the total grocery market. there are a number of things -- >> maybe amazon bought whole foods because they realize people don't want to buy groceries online as much >> walmart has had a lot of success. >> so they can feel their own fruit. >> exactly >> and it does help some --
>> that sounds so weird. >> why is it weird when i say it but not weird when she says it >> yes it is >> courtney, stay right there. let's bring in patrick, the senior equity analyst with mkm partners he thinks target and others could be getting hit and this deal could spell trouble for them patrick, welcome back. who do you -- the market sold off everybody on friday because they're afraid they'll get, quote, amazon'd themselves you've had a few days to think about it who may be most at risk to this newfound partnership, assuming this is ultimately consummated >> hi, brian just sticking within my coverage university, i've got walmart, target, the dollar stores and a bunch of others. within my coverage i'd say target is probably the most vulnerable and that was the stock that got hit the hardest on friday. just got whacked >> what is it about target that makes them vulnerable?
courtney has reported -- correct me if i'm wrong -- 12 of the last 16 executives have left over the last 12 years >> what makes them so vulnerable >> what makes -- first of all, it's certainly not as big of a business as it is for walmart. it's 21% of target's business. it's 55%-plus of walmart's business so grocery is not as important to target, but it is a traffic driver it's an area they've been struggling in. they are trying to fix it, and they've been bringing in more organics, more better for you. more fresh trying to improve their fresh assortment so that's -- and also they have a customer that lines up nicely with that core -- or with that amazon prime customer. those are the key vulnerabilities here for target. >> based on what you said, i'd think walmart would be the most vulnerable considering what a large percentage grocery is.
and i'm assuming that amazon is going to make prices cheaper than they already are when it comes to the grocery aisle >> walmart has been doing a better job in perishable food. it looks better. it's fresher they've been growing their grocery business nicely. they've got online grocery now in about 700 stores. so they've got a proactive online strategy. i think, you know, it validates in a lot of ways what walmart is doing with bricks and clicks and omni channel so i think walmart, they are a little vulnerable from the pricing angle, but elsewhere, they have a different customer base than whole foods. >> amazon gets now 460 more locations. that much closer to consumer homes. so do you think that there is a very real and very, you know, immediate threat that they could also use the whole foods stores as fulfillment centers or different pick-up points for different goods that are not
perishable food items? >> absolutely. but, i mean, the stores still are grocery stores and they still have to deal with deliveries of fresh produce and that sort of thing i don't think you can mess with it too much in terms of bringing in additional nongrocery merchandise. >> yeah. >> there are limitations >> do you think the whole foods customer will go in to buy some fancy schmancy fruit wants to be standing next to -- my socks just came in and i need a box. that doesn't fit in with their thesis >> there are other retailers amazon could have purchased that would give them more distribution points. whole foods has key distribution points with its stores in better off areas of the country so that's important, of course, but 460 stores in the grand scheme of thing is not really that many considering many retailers have thousands of stores >> all right
we'll see. that's a cliche. thank you very much. >> we've got to watch it in the meantime >> thanks, courtney. thanks, patrick. to infinity and beyond tesla's ceo elon musk laying out his mars manifesto he wants to make travel there cheaper than the median cost of a house in the united states how is he going to make that eangen spki of deflation, details, next and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe.
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on with biotech if you look at the etx xpi. trading at levels not seen since november 2015 and on pace for its best day in nearly four months big notable mover in the space there, clovis oncology up 50% today on positive cancer data. meg terrell is coming up in the 2:00 p.m. hour to talk about what happened with clovis today. big move >> huge. all right. they tell you to set your sights on the moon when you want to do something. apparently that is not enough for elon musk. musk detailing its plans to colonize mars. his vision includes reusable rockets and spaceships that could carry 1 million people to the red planet within the next 50 to 100 years. this could bring the cost of the trip down to $200,000 or so from an estimated $10 billion right now using conventional space flight systems musk though cautions there's a huge amount of misc. there's a good chance we'll not succeed, but we're going to do
our best to make as much progress as possible my question is, as cool as this may be, michelle, why? 95% carbon dioxide, average temperature minus 80 degrees fahrenheit giant dust storms and -- >> if you don't like global warming there, you're not going to like it on mars >> climates are changing on mars why go to mars nothing there.jobs, robots and manufacturing in america we'll speak to one of the biggest producers of international robots he says don't worry, and he hasn't and one wall street stock that analysts say could surge 30% from here. that name is -- coming up. ♪ i'm living that yacht life life life life ♪ top speed fifty knots life ♪ on the caribbean seas ♪ it's a champagne and models potpourri ♪ on my yacht made of cuban mahogany ♪ gany, gany, gany
jared kushner addressing tech ceos at the white house moments ago. let's listen >> -- as we work to modernize the government's technology infrastruct purp we've created the white house office of american innovation in an effort to bring business sensibility to a government that for too long has relied on past practices as automatic justification for
their continuation before i came to washington, many warned me that the bureaucracy would resist any change that we tried to implement. so far, i have found exactly the opposite to date, we've been working with hundreds of talented civil servants, men and women who want to serve their country and see their government do better we have challenged ourselves to pursue change that will provide utility to americans far beyond our tenure here. together, we have set ambitious goals and empowered interagency teams to tackle our objectives it's working, and it's very exciting we began by analyzing and auditing our current infrastructure it turns out that federal agencies collectively operate 6,100 data centers the vast majority of which can be consolidated and migrated to the cloud, something a lot of you know a lot about
many of our federal systems are decades old with our ten oldest between between 39 and 56 years old. the department of defense, for example, still uses eight-inch floppy discs on some of its legacy systems the 1980 paperwork reduction act designed to make government more efficient but also establish before the government used computers, still has domain over every form pub lulished online. this requires a six-month review and rigorous interagency process to approve any changes that can be made on a government website. regardless of how minor they are. this traps thousands of processes and paperwork and prevents routine improvements, optimization and often innovation the v.a. has 532 forms on vets.gov the majority of which are not accessible by modern browsers. most services still use paper forms, including 90% of health
care applications and 86% of claims our veterans deserve better, and that's what we are going to deliver. civilian agencies maintain over 1.6 million e-mail addresses via on-premise servers, which are maintained by over 40 different contracts paying on average $20 per user per month agencies that have migrated to cloud-based e-mail have seen these costs reduced to as little as $3 per user our goal here is simple. we are here to improve the day-to-day lives of the average citizen. that's a core promise and we are keeping it together, we will unleash the creativity of the private sector to provide citizen services in a way that has never happened before we will foster a new set of start-ups and be the global leader in the field making government more transparent and responsive to citizens' needs.
we are encouraged by the enthusiasm and collective desire to succeed, and we have already begun to see many improvements two weeks ago, secretary schulken announce aids plan to unify the electronic medical records systems of the v.a. and the dod. as the two systems encompass essentially the same set of users, this merger would seem obvious. however, this has been a major issue for veterans and despite 16 years of failed efforts, the trump administration got it done in less than five months additionally, the v.a. has already been able to reduce the average wait time for claim establishment from 25 days to 8. the secretary has done an outstanding job and has many more great announcements that will be coming soon, including a very big one this coming friday. omb has eliminated more than 30 outdated and unnecessary technology policies comprising
of more than 850 discrete requirements of federal agencies this effort alone will reduce compliance costs by tens of thousands of work hours per year for example, until last week, the government was still requiring federal agencies to check software for y2k compliance we have also worked with bipartisan leaders of the house to unanimously pass the modernizing government technology act and are actively work with the senate to send it to the president's desk for signing into law a conservative estimate has our government's technology spending at over $80 billion a year annually over two-thirds of these costs are spent maintaining legacy systems. this structure is unsustainable. ultimately, these problems are more than simply technical they are about veterans in need of care, students fulfilling their potential, and americans
pursuing their dreams. by modernizing these systems, we will meaningfully improve the lives of tens of millions of americans. thank you all for being here today and for participating in these sessions, and we hope that in the coming weeks we'll be able to announce a lot more very exciting, successes that will make this country better for everybody. i now want to turn this over to chris who is going to go into more detail on the different sessions and give you more direction on the rooms we'll go to and how we'll evolve over the next couple of hours thank you for being here, and we look forward to working with you and achieving great things >> that was jared kushner moments ago wrapping up a discussion about trying to modernize the government's technology infrastructure. that ended a few moments popping ayman jafers was inside the room a lot of discussion and numbers about how old the systems are but also speaking of numbers, probably the first public
comments i can remember from kushner himself. >> that's right, brian we've been trying to rack our brains to see if kushner has ever been on camera before at a white house event like this. it's srply a rare occurrence for jared kushner to speak publicly. today he's talking about one of the central roles he has at the white house which is this overall addressing american innovation, particularly in the government sector. what they want to do today from these tech ceos is bring in ideas. that was the pitch from chris ledell and jared kushner to the ceos in the room the alphabet chairman was there. tim cook of apple. ibm was in the room for those remarks. an all-star crowd. they are now breaking up and going into these different working groups where they'll try to pick their brains and get their ideas on government tech it's something that's bedeviled every administration they all come in and they are shocked. >> peter teal in his speech at the rnc brought up the floppy
disc you think it's low hanging fruit to be able to leapfrog to whatever the next technology is. but you're right it has bedeviled administration after administration you can be sure that president obama and president bush thought it was a bad idea to still have floppy discs, and yet they still have floppy discs. it's about processes or something that happens within the government that they don't get it done. >> it's big and it's slow. and it's like steering an oil tanker you turn the wheel and it's nine miles before you make a left so that's the problem that they have jared kushner here very much playing the role of host to all these top ceos meeting and greeting in the room just before it, too. the trump administration holding the select usa investment summit in washington, d.c. it's all part of the president's promise to bring more jobs back to america joining us for the event is greg shy, president of the americas for abv. thanks for your patience
we appreciate it you probably are not going to touch this question with a 20-foot pole but i'm going to ask it anyway. you deal with the government you sell to the government in some of your forums. how bad is the united states government technology's infrastructure >> brian, glad to be with you. look, we do supply to the government it's not a major part of our business i'd say there's a lot of leading parts of the government that i see on the department of energy, for instance, where there's a lot of great research being done our biggest challenge in dealing with the government is looking at regulations and how to reduce the red tape a lot of what's been talked about in regulatory reform so i think some of the things being mentioned tor simplify and create a better ease in doing things >> we have all -- we all here at cnbc have sfoek espoken with ceo tell us when they deal with the government, they feel like they
are a red tape seller. they don't sell whatever product it is. they sell paperwork and it just comes with a product is it really that bad? a lot of viewers may think, here are the corporate americans complaining and whining again. >> the fundamental thing that a company like ours that operates around the world and has 20% of its business in the u.s. with 20,000 employees and 60 factories in the u.s. is really looking at, how do you drive competitiveness as a country it's not just about regulatory reform it's about tax reform. and it's also about modernizing the infrastruct are that allows our customers in our business to continue to go forward in a good way. so those are really the big topics, each of which, as i'm here in d.c., we're engaging with the federal government and here at the select usa conference, it's all about foreign direct investment and how to continue to get companies to want to invest in the united states >> you manufacture robots.
a lot of people are very worried that what you do puts individuals out of work. what do you tell them? >> well, look. technology is changing at a pace -- i've been doing this 35 years. it's moving as fast as we've ever seen it i don't think it's going to slow down what we're talking about -- we've been doing robots since the mid'70 pps robots easier to use. collab roative robots that can work together. if you today how economies around the world have developed, look at germany, japan, south korea. the highest density of automation and robotics of any countries, and the most prosperous manufacturing businesses in the world. so i don't think it's a fear we should be looking at but a viability of how to make manufacturing globally competitive that allows the workers to understand that as technology evolves, the workers have to evolve with it and our job is to really bring our workforce together into the future and not create discount
newities where whole businesses pick up and have to move this is what's happening in the u.s. you're seeing a rebound of companies looking at reshoring, bringing manufacturing back, and everybody takes a solid look at your business model to figure out what part should be automated and which ones shouldn't. that's been proven like i say in japan, germany, south korea. >> thanks for joining us, greg shy with abb at the select usa investment conference. a big interview here tomorrow on "power lunch." we'll be live in d.c. with house speaker paul ryan. the national association of manufacturers summit ryan there for his first major speech on tax reform tune in tomorrow around 1:30 p.m. eastern time for that interview live from d.c. the battle for ad space. not for space but ad space taking place at the world's biggest advertising conference julia poboorstin is there. >> thanks so much, michelle.
jim, thanks for joining us >> great to be here. >> here in cannes, right between the facebook beach setup and youtube and google on the other side of us you've been meet with advertisers. what's your pitch about why they should come to you and not those two ad giants? >> brands are mattering again in the world of digital advertising and modern media in years past, there's been emphasis on scale, on data all critically important things. what was lost was quality, context, adjasency things that it takes to build image and perception if you're a brand. the vox media brands, we go deeper, that's our calling, we have had a lot of interest because we're living in a time where safety matters for brands. adjacentsy matters
>> google made more of an effort to pull down offensive, extremist content from youtube this issue of brand safety has been a big problem for google. facebook has had a number of measurement issues are you trying to take advantage of those questions about google and facebook >> those are two great companies. we're partners with them so we work closely with them we've become vox.com, our news property, has become one of the largest and most engaged youtube properties we're big on facebook, too, and proud of it. but we're able to offer something that is different. we're able to offer both scale and premium quality contacts one of the things we're talking about here in cannes is a program called concert which is a partnership with nbc universal, your parent company, and conde nast we're able to offer reach to 200 million consumers in the u.s 99% of all millennials but offer it with household brand names people know and trust that consumers love >> we should disclose that nbc universal is an investment in
vox in addition to that partnership. now we just had shane smith, the ceo of vice media on they were talking about this big investment from tpg and it helps them benchmark for a potential ipo down the road. what are your ipo plans or interest in selling? >> congratulations to shane. it shows that modern media brands that appeal to strong consumers win. and are doing really well with a new generation at vox media, we are digital first and foremost one of the largest independent digital media company. we're growing phenomenally and able to do it across multiple different categories >> no idea of plans. >> not yet here's the way i look at it. if we continue to grow and continue to build great brands that people trust that young audiences gravitate to, we'll have lots of options >> just a quick option time warner announced a big $100 million deal to create content for snap is this going to be more
competition for your snap content? >> it shows these markets are developing not only the big ott providers where brands like ours resonate, whether it's amazon, hulu, netflix, but mobile ott including snap, including facebook and youtube there's a lot of new markets developing it's a great opportunity for next generation modern media brands >> certainly a fun space to watch. especially here at cannes. thanks for joining us. michelle and brian, back over to you. >> julia, thank you. tvs, power and hotel rooms they kind of go together we're talking about stock calls you need to know about it's street talk coming up rick santelli in chicago for today's bond action. >> things making somewhat financial sense this morning we see ten-year note yields up about three basis points stocks up nicely in new
territory. one week of tens, what should jump out is on the left side you see that big drop. that was fed day we still haven't gotten above where yields were before the drop in yields, even though they raised rates one week of the dollar index, focus on the same area of that chart, the dollar index is higher now let's steer towards europe french two-year is awfully negative, like a lot of maturities in the eurozone you need to really notice we settled and then went much less negative, right around minus 28 basis points but the next chart is from the election may 7th it's gotten more negative. that's a fascinating thing to watch considering it's supposed to be a reform government. that's a trade to pay attention to hey, power lunch will return before you can see 200,000 econ tdeeltricras traded don't change that channel.
foods is not sitting well with whole foods. is amazon getting too big and too powerful >> joining us is our professor and on the phone is stacey mitchell which thought before this deal is announced, amazon should be subjected to anti-trust busting st stacey, it is good to have you here, you don't think this deal should happen, why >> i think amazon has already too much power, this will give more power over the markets and other companies. in the end it is going to hurt workers and consumers. statistics is the most important to keep in mind. amazon is capturing one out of every $2 that americans spend
onli online it is monopolizing commerce. >> stay scey, you know what thee going to say, maybe they're controlling online but they don't control retails. >> it is only 8.5% overall retail at some point amazon is a fraction of that >> it is an out dated notion to think of separate things what's beginning to happen is there is a fluidity of online and offline. you see this acquisition is something that's going to happen amazon extending their market power online and physical details and increasing that of the difference in the gap that's going to disappear >> hold on, i want to get glenn in, what do you think stacey is saying here? >> through the things that
stacey is saying, entrusting on the law that's focusing on verticals and not shorizontals. in the category of grocery for whole foods, whole foods in terms of plus amazon is on the face of grocery retailing. unless we want to revise all the ways we think of antitrust, it is not likely to happen. >> what about ultimately hurting consumers. that's what antitrust is all about, is it >> my argument at the core is amazon is a given over the last 20 years benefited consumers in count less ways and there is no reason to believe at the end of the day that their ability to move into this channel will ultimately not drive down costs or prices of consumers and increase access to goods >> stacey, it seems like a lot of healthy good quality food can
become far more affordable >> amazon is selected of raising prices online. you don't know when you log on at that moment you see data away to show you a place that's not in fact the lowest price and logging access to certain produc products, we are seeing signs that amazon is exercising ways that hurt consumers. you have a company that has a monopoly online. >> you made that line at the beginning. unfortunately, we have to pay the bills and we have to cut you off. i have no doubt we'll have this discussion again amazon is too powerful
>> absolutely. >> we'll be calling on you again. thanks so much time for "street talk. analysts recognizing on the stocks that you need to know about. first off, brian, capable internet provider is wide open starting at a $24 market analysts like it free cash flows solid and margins are expanding of $23 upside and 30% gains if it hits it >> yeah, wow, the second stock, two falls in one gmp -- margins are higher and likes dividends in yield and $70 targets. analysts are hoping more bullets on johnson's control he's got a $54 on targets.
johnson controls got hidden infrastructure and managing big infrastructure project, i assume the risks. >> trip adviser, analysts facing midterm earnings pressure exerted by a lot of online competitions you can see it is 36 now and fallen another 34 cents today >> that's a fancy way of saying it eqt midstream partners, how is that for a name? upgrades for their focus that came from the bottom list, there is a reason. eqt bought rice energy for a couple of billion dollars and now it says this is good for eqm, the ticker. in other words, their dad bought a bunch more natural gas and now they get to carry it in the pipelines. >> what are we talking about >> it is pittsburgh.
all right, welcome back, 2:00 p.m. eastern times. stock pick, he was named the top stock picker of america, he joins us to give us the best ideas right now. ahead, no profit ssprofits no problem blue apron, never making a profit, does it signal something bigger >> how about making six figures to raise drones. we'll show you how the power lunch begins right now. >> all those stories and a strong day for the markets the dow and the s&p hitting an all time highs today the dow is higher than 122 points
nasdaq is the biggest gain and tech is a big performer today led by micron tech, advanced micro and apple. >> and the defense names continue to hit an all time highs as well including lockheed and raytheon. >> what do you, the public think? >> steve liesman is joining us now. >> yeah, i want to take a look at donald trump's best issues, i am afraid i don't have any news. >> infrastructure and individual tax cuts and reducing business regulations. all of these are a majority in favor of donald trump's stance look at the difference between april and the june survey, he lost grounds quite a bit on
infrastructure and tax cuts and you know all of these major issues he lost grounds on in terms of support from the public now looking at the bottom, the worst issues for the president in a different way those percentages of disagreeing and agreeing healthcare of 48 and 44 within the margins there. not terrible in the margins. look at enforcing immigration on the border wall, 10 points under water and climate change is nearly 20 points under water put all of this together in one hole lets look at his approval rating overall and the economy 37% and 51% disapproving >> charles evans will be on. >> we'll be looking forward for
that >> scott ren at wargo. y wells wargo. >> what do you think it means from the market? >> the only thing this market is focused on is what is congress and the new administration is going to do that's going to extend this long expansion tax cuts are important you know infrastructure spending, i don't know if we are going to have a big enough program to clopush an $18 trilln economy ahead. i think of tax cuts. >> if they don't have it >> to be honest with you, we are getting a little of enthusiasm and chasing. evaluations are stretched. you know i don't think the market is going to trade too much higher than we are right now. >> mark, what do you think >> we would agree with what
scott said what we like is non u.s. performing better and that's our plate that we call for this year led by europe and emerging markets for 20% for the year of international of 2015. if people want to replay the yearbook so to speak a little bit cheaper stock prices in an economy that's improving. we think outside the u.s. is the place to be. we agree there is probably some chop ahead for the u.s. markets, it all comes down to tax reforms and getting those initiatives through. until that happens, low volatility and some of that got to get, we think of the risk of downtown than the upside >> people in the market has to watch the president and how he's supporting himself the ones that are winners and i see him losing support on his winners, michelle, you have been a reporter doing this for many years, i have, too the way they roll it out fchlt
if you are a hands down hard core cheering supporter of the president, you cannot take his proposals and explain why they are great. wall street has to watch these behaviors, he said in two days i am going to have a tax plan, all of his people. >> floridians. >> all of his people start to scrambling and putting out one page, how do you get booiehind t and how can he use the media trying to create support for his own program. inside that approval number of 37%, the republicans support has fallen below 80% to 72%. you cannot go to a gunfight with a knife. he's going to a gunfight with a knife with 80% >> the market sits at a new high everything that steve just said, we all know that, right? everybody knows what you just said when it comes to evaluations. what exactly is it that's going
to move the markets lower? >> well, one is evaluations and the other is lack of progress on any fiscal issues in washington. i am not talking about 2017 but a bit beyond >> scott, let me ketel marcut y. >> steve, yes. >> walk me through your observation, do you see any fiscal coming out tax wise >> definitely not. you are going to see something maybe in 2018, maybe you are not going to see in 2017, that's for sure so maybe in 2018 but you know you got to emphasize maybe because nothing happens. if nothing happens and we are not getting any fiscal push here >> brian, go ahead >> i know you are on investing segment. lets not forget in his congress
that makes the laws for the most part paul ryan is on this very show tomorrow where he will be laying out his tax plans. you got to get something done for stocks to go higher. do you have more confidence in congress than maybe the president's ability to get it done >> i don't know if i have more confidence in congress until they demonstrate an ability to get something this hard through. tax reform is hard and we agree with scott, it would be a 2018 initiative this is what you are banking onto take this market higher why not go other places of the world where there is politics anywhere we are the economic and monetary story is supportive of stock we think it is a complacent u.s. market and almost everywhere other than the u.s we think this market is
accomplice se complacent you are banking on congress at this point to take you higher and i don't know if i want to be on that side of the trade >> steve, mark, scott, thank you very much. >> thanks guys >> executives representing the big technology company in the world are all at the white house today, that includes amazon jeff bezos and tim cook tim cook explains to jim cramer last month why companies need to attend these meetings. >> i think with each administration and every country in the world, there are things you disagree and things you agree. you look to find common ground and influence the things you don't. if you don't show up, i think that's the worst scenario because then you are quiet and this does not do your pause any
good >> all right, lets bring in from the ceo, josh lipton >> this is a tense meeting given how sharply. the same second ceos have criticized president trump you mentioned tim cook there and one issue front and apple for ceo is climate change. cook took the president to task for moremoving the u.s. from the paris climate agreement. in twitter, it was wallahis wor" wrong or your planet." schmidt did not back down one bit. >> you also find that all other
companies in the industry agreed with us. >> now, beyond climate change, immigration is another critical area of disagreements here the president's proposed travel ban, when the fight first broke out. microsoft nadella made his view clear. guy guys, back to you. >> josh, thank you very much i got jeff bezos on my brain >> speaking of jeff bezos, check this out amazon impacts other companies so great that one research firm fell compel to build a death by amazon index they fear they maybe quote, "amazon as well. >> joining us, cofounder, paul,
why did you feel the need to build such a dwyer index in the first place? >> it is more than $10 billion and closer to $20 billion. >> the point of index and a few years we are sitting back and looking at it of prime coming in of these from puerto rico and the shift is going online. we have seen retail sales of unprecedented growth just in the end of 2015, over a third of all new retail sales, the margins have come online it is just sucking share from traditional retailers at a pace never before seen. we have never seen any sectors showing that consistent growth you have the fact that consumer preferences that are changing and people are buying and experiences over good.
retail sectors are over four times as much of a footprint >> is it possible that amazon is going to face some kind of real backlash from the government when coitit comes to antitrust. they should be treated not as a retailer but as a common carrier and treated like as railroad during the gilded age. the lead says amazon is the most interesting and important problem in american antitrust law. they have a big target on them right now. th is that going to come to anything or be immune? >> if you think of potential worries for amazon, that's the worry, i don't know how big of a worry it should be at this point. it is more of a pop -- populous
argument people can shop at other places. they choose to shop at amazon because it is the most convenient we saw our death by amazon index on friday had the worst day in the history of index going back to 2012. that's of a day where the rest of the market is up. nobody knows for sure how this whole amazon and whole foods merger are playing out amazon's moving further in the turf of traditional retailer like you said. whole foods going out of $43 a share where price was below two years ago is sort of acceptance on the part of retailers, hey, those glory days are behind us and get out. >> you cannot beat us, join us >> the amazon is not only hitting the stores but killing indexes. they're getting crushed. fundamentally here quickly, whatever antitrust, amazon is trading at 147th times this year
expected earnings. should buying 450 stores and close to 90,000 actual real live human beings bring your evaluation down a little bit evaluation went up on the deal as most retailers, brick and morter are trading it 12 to 15 times. >> yeah, the one that reactions it is hard to make heads or tails out of that. it was such a small, it is a small drop in the bucket for amazon here and actually the deal is accrued to amazon's multiples when you think about it it is a funny situation there and the pe drops about on a five points combined basis. so it is 180 times >> that's amazing. it speaks to what amazon's margins are and it is unbelie r unbelievable mr. hickey, thank you very much. >> we talked about companies
that could hurt amazon but what about companies that could benefit. they don't care which michelle as long as we keep on buying stuff online >> look at that. packaging corp. and west rock. those shares are up. buy it, click it and ship it and recycle and print cash >> yes, making a lot of sense. >> here is what's coming up. blue apron is peeking their ipo. we'll talk to the head of the drone racing ld, aeall that and more is coming up on "power lunch. track record. well, have you seen her work? no. is it good? good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data-
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significant headline risks here. for one, getting new customers is expensive blue apron costs have skyrocketed. whole foods could produce significant competition here as well >> the environment itself is perfect for low volatility that's w . >> big disrupters and selling mattresses online. it is like 1999 again. >> okay, has the ipo market reached the top? here is what blue apron had to dischllose of ipo filing "we have a history of losses and we may be unable to achieve or
susta sustain" so what's the story here and why are these companies going public and they are not sure if they can be profitable our cnbc's contributor is joining us, what do you think? >> if i were blue apron, i would try to go public, too. as long as the money is there, you take the money when the window is open and you grab it if the public want to give you the money, you take it those places that you mentioned, they have been there since the beginning of time. what really got me though this morning was when we started talking about when the news came out, that means they may file an appeal, where did that come out from they were raising another round of financing to ipo.
>> what's that >> they're raising money for the exit strategy. >> that's how you get rich >> you sell stocks and buy a yacht. put a mattress on your yacht >> you didn't hear the specific square research is foiling or an io >> we would be silly if we did not. we look at companies, real companies, companies that are public and we see thing that is are happening and stocks that are going un we scratch our heads, it does not make sense and you come back to a discussion that you all had last week and all i can think of sometimes especially after this round of earnings is headline driven out, moves. the headlines it is almost like it hit to the headlines. >> so you are say things like
blue apron of a bigger issue of the market >> when you talk about the different classes that they're going to offer within blue apron remind me of covenant light blown when you are at the depth of the bubble. >> it is the same thing. this is what you saw with snapped as well. >> they're selling stock s to te public that's one vote per share. if you are a shareholder in the company, you want to make changes, that's not going to happen another interesting thing, too, is i hear the evaluations can be justified to a potential sale to walmart for blue apron in light of what we have seen and whole foo foods. a significant anti-take over measures telling this company is going to be a big challenge with limited stockholder protection and
anti-take over measures. >> an important thing to remember, we cannot sit here to say which is successful i have been so wrong in the past on some and i have been so right on some. it is a crap chute on some of these companies. they're taking the money when the money is there and that's what bankers are trying to get them to do it does not matter if the companies is terrible. >> sell it for somebody else at a higher price, sir. >> you are a genius and does not matter what the company does, that's the idea. until you trade out then it is a tr trade. >> remember all the others i got to say one other quick thing here even on alibaba where jim cramer
and i really disagrees if you look at his video you got to own it and period, you got to look at one little word he says, trading. that's what mixed up here quite a bit with a lot of people in the end, you will trade it right or you won't >> trading and investing are two different things right now thanks herb. >> and also lesley, thank you. >> the bad and the good and ugly today. if you heard of america's top model which you can make money out of that. we brought in amics p era'to stock picker we'll get his picks, coming up who's the new guy? they call him the whisperer.
the whisperer? why do they call him the whisperer? he talks to planes. he talks to planes. watch this. hey watson, what's avionics telling you? maintenance records and performance data suggest replacing capacitor c4. not bad. what's with the coffee maker? sorry. we are not on speaking terms. what's with the coffee maker? we rbut we are not victims.ack.
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>> the whole foods and amazon deal maybe a game changer for costco it is an ugly day for eqt. they're buying rice energy at $6.7 billion >> thanks brian, coming up, the decision that could have a big impact on the marks. our america's top stock picker will join us, he will name some names. we'll be right back.
theresa may attended a meeting in a mosque today after a van drove in a crowd of worshippers. one man died at the scene. it is unclear how he died. police are treating the incident as a terror attack >> the death of a virginia teenager attacked near a mosque is not being called as a hate crime. the 22-year-old man is charged as murder. the cause of death is not released carrie fisher's autopsy
report shows cocaine and heroine and ecstasy. a meeting with the president and the president of panama. trump will meet with the biggest names in tech including tim cook and jeff bezos that's our news update i will send it back to you >> nasdaq is more than 1%. big tech ceos are at the white house, amazon and apple. and alphabet class a and microsoft. oil market of the day, lets get to our dominic chu
>> supply concerns again certain key marks in africa are seeing as offsetting o f the opec effect of the big one to curve protection >> you can see there are about 44 and a quarter we have seen 22 straight weeks of growth in the number of active oil rigs in usa that's helping to make energy sector like you point it out ochne of h worst in the country today a major decision is coming up tomorrow. t will the ms sky allow chinese companies into its indexes when you first heard it you are like it goes in the back of your head but, tell us why it is a big deal >> indexers like msci rules the world now.
right now you know only hong kong listing this stock. critics say that's a problem mainland china market is worth $6 trillion and congress hong kong >> it is been too easy for companies to hold trading in their stocks and chinese regulators limit circumstances and for how long chinese companies can hold there is another issue how much it can be taken out of the market at one time the two exchanges making it far easier to get money in and out of the mainland stock market what does it mean for isn't it true. >> it means if you own a national index through etf, the chances are you will be owning more of the next few years if
they make the lead indexers don't are to buy hundreds of stocks immediately the effect will be felt. there is eps for this, by the way. the biggest of all is etf. if you want direct exposure of china stock, part of the decision by the way is strategic and vanguard already using indexes from competitors keep an eye on that and that's just not me. >> thompson reuters announcing its winner of 2017 chris, first off and welcome and congratulations. thank you very much, i appreciate it better >> listen more surprising is the
fact that you cover utility which we don't think it is sexy. you think a top stock picker will be picking at this and getting lucky on a few of them you sort of where the tortoise to the hare, give us your favorite pickes right now. >> i am not surprised that you think that right now elite is one of my favorite, it has potential earnings it is in diluth, minnesota it has a water infrastructure business we have a $78 target price that's about 10% total return of
a relatively low risk profile. they are extremely well positions and creating more earnings >> diluth power company, top stop picks your other pick is nbc resources. another off the grid and on the grid company bismarck and north dakota, power producer >> that's right. >> utilities in the dakotas and wyoming, it is a beneficiary of what's going on and it is in the growth and idaho but, it is only about 40% in utility. utility is growing nicely and extraordinary well positioned for infrastructure girls our bridges and roads are
crumbling. mdu is one of the top five and all kinds of things. >> people worry when interest rates go up, utility stocks go down they tell me one of these days that interest rates are going to go up and we'll see the ten year move of appreciate bli higher. what's happening of you being the number one stock picker fs th fs -- if that occurs >> it is a stock picking market today and evaluations have gone up there are key fundamental reasons why utility have been strong and since 200s, s & p of 500 and we are growing 5%. dividends are growing 67%. so there has been some real
dallas fort worth dividend income growth for investors and demographics yeah, i think that's going to be a head wind but when you look at the fundamentals for the group >> uh-huh. >> i think you can see why the evaluations have inflated the way that they have it is a very attracted group particularly for that large demographic group of retirees who like the growth in the industry and safety factor and the dividend income. interest rates will be a bit of a head win every year dividends grow and that helps negate of the price >> congratulations thank you alete and mdu. i love the story, we focus on amazon and facebook and i am sure diluth and bismarck, power
company. >> you go t t to turn on the lit everyday >> amazon is taking over everything and everywhere. could the hospitals be next? >> yes, the hospitals. plus, big gain for one stock that's fighting cancer we are talking tech and trading nations. the big names are arising today. the worst is over and the big none, get this, big money in drone racing look at your screen. can u yocompete? coming up on "power lunch. liberty mutual stood with us when a fire destroyed the living room. we were able to replace everything in it. liberty did what? liberty mutual paid to replace all of our property that was damaged. and we didn't have to touch our savings. yeah, our insurance won't do that.
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>> now clovis looks like a prime candidate and this has been the conversation around tesaro you can see the differential there. >> different things going on and jp morgan is saying these data should narrow differential a little bit there will be a lot of speculations continuing about that of course, these are not the only companies in the space. so it is a really tight race but always good to see good news of drugstores fighting for positive causes >> we have been talking so much about amazon tell us the story about amazon expanding its regions to hospitals, is it alexa or the e echo >> this is the story on our
cnbc.com today of course, we had a story s suggesting amazon is getting into pharmacy. it is a great story and i u suggest people reading it on the website. we saw implications for pharmacy stocks on the whole foods acquisition from amazon. you see walgreens and cvs is getting hit very hard here >> it could be helpful in the hospital settings but it could be weeks away. >> separate unrelated story. do you think amazon will ever be of real estate i wonder is that the $100 billion industry that amazon is looking into >> everybody is calling for years of disruptions in the area
and it has not happen. >> hospitals maybe the next thing >> yeah. >> got it. meg, thank you very much >> all right, technology stocks are seeing a big bounce today. the best day since march bringing our trading team, denn dennis, last week we are talking about the tech rec and the failure of fangs is this a one day wonder or the drop we saw just a couple of days at a still solid up trend >> the phrase that people were using of a tech come back and the stock of the 15% for the year >> i have not used it nor would i, they're all doing well. >> we'll leave it to ll cool jay to call it a come back we are seeing an upside, that's right. that's where i spend my time
>> we are buying a triple q options. so we are seeing gaining exposures back in the tech sector and using options on the broader base tech indexes which are the fang stuff >> when luke at the charts, you see that blimp down, what do you think? where is the trend >> the trend is higher, that's the important point. it is within trend and here are the stats. so far the sp 500 have under performed verses the markets over the last two weeks and retraced 38% of its gains since december which is an important retracing level. this is where we expect the sector to start to stabilize the important point as i lie in with that, the weakness that we see are all within trend we are seeing this pulled back against a rising 200 and a moving average, we define that set up as near term opportunity to buy long-term strengths
unemotionally, this sector, i think it is starting to become a tactical idea and we see this is a secular story and we think the sector does fine for the long-term. >> does fine and positive trends and all kinds of good stuff. dennis, reminding folks of more trading nation, you can go to our website on tradingnatio tradingnation @cnbc.com. >> competitors can make really good money, ahead of the drl, next on "pl. >> now the latheest from trading nation and the word frs os fromr sponsors >> a good step is determining the amount they're willing to risk on any given trade. some ud sethe 2% rule to know
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lee just announced a new partnership with who else, the company of the moment, amazon and the 2017 championships begin tomorrow on espn joining us now is the ceo and founder of the drone racing league good to have you here. >> thanks for having me. >> good to have -- $100,000? >> yeah, absolutely. >> that's the prize money? >> the prize money for the top pilot. this is a pro league we go around the world and broadcast in 40 countries in 2016. >> bring up the video again. what are these courses what do i see these drones flying through it looks like -- >> that's alexandra palace in london it's a palace in north london. we race in nfl stadiums, abandoned malls. one of the great things about the sport you can do it anyway fully three-dimensional racing, drones go 80 to 90 miles per hour and can do it in a wide variety of settings. >> we have it here on set. how big is it? i'm going to put my hand next to it so you can see the relative
size of it how much do those costs? >> these are 500 to $1,000 models and we do all the designing and technology in house. we're a technology company. >> can i bring my own drone to your race? >> no. partially because we want to find the greatest drone racer on earth and we build ultra high performance models and we want to see them compete on that level. >> people pay participant views and viewing fees how do you monetize it >> media rights, sponsorship and licensing fees >> are you profitable? >> not yet. >> how do you prevent cheating when the first guy started racing cars, the second guy started cheating >> so we standardize all the equipment. do all the equipment design in house and drone every single drone and tune them. we don't let the participants touch the drones until the competition. >> if you're providing all the gear, you must have the pilots in mind. >> absolutely. we recruit the pilots from
either amateur drone racing competitions and also have a skrid game where you can try out. >> you have to be like local drone boy and then move to regional drone boy champ and then like state champ crop, right? >> some of that, or you can earn your way in. we had a contest with bud light. 100,000 people tried out during a video game and then they got to race real drones all the way around the world with us this season. >> what makes us a good drone pilot. >> a pilot, absolutely. >> that's a combination of hand-eye coordination, very good depth perception and all the abilities to stay calm under pressure we take into account motorcycle and car racing >> as a kid i used to race these really fast remote control cars as well, kind of the same thing. go 100 miles an hour and got to have that. who is your ideal drone? is it like a 12-year-old boy >> no. most our competitors are mid-20s to late 20s. that is seems to be the peak
age, the experience and discipline to compete under pressure, but they are, you know, very focused on the sport at a young age. >> are drones going to become -- >> are you thinking about drones beyond your racing leagueing where are drones going what are they going to do? do you think about those big questions? >> absolutely. obviously, we're a small part of a multi-billion dollar drone industry and what we find is everybody these days have a drone, they are learning how to fly them and people are finding commercial and consumer applications for them and we're just a piece of that we're a great outlet and good reason to find drones and a great way for the public to get exposed to it through things like espn, so we're just helping to build awareness. >> okay. looks cool and i watched something last year. it's all dudes. >> it's all guys. >> where are the female drone raceers? >> they are absolutely female drone pilots out there we had a woman compete in the league in 2016 we don't have any in 2017 but it's a growing movement. more doing every day incredibly talented women flying
drones and i expect you'll see them back in the league very soon. >> that was really well-rehearsed that last answer. >> i want to see it. >> where do we watch it? >> espn. >> real life. >> i'm not going to watch espn never even heard of it we've got to go. never mind. >> thanks, it was great. lots of fun. good look to you. a news alert now. >> wilbur roth commerce secretary said nafta renegotiation may not happen this year. he said getting it done by the end of 2017 would be a record speed and that the calendar is fundamentally not our friend if these talks do spill into 2018 they could run into trouble, including mexico's presidential elections and the u.s.' own trade promotion authority would expire by next summer we'll bring you more as we have it, guys. >> they should be very worried about the mexican elections because there's a contestant who makes hugo chavez look like a centrist that would be tough.
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>> that's true. >> how is that for transition? don't miss our interview tomorrow paul ryan, speaker of the house, around 1:30 p.m. eastern time giving a major tax reform speech you will not want to miss that. >> that's what the markets want. thanks for watching "power lunch." >> ""closing bell" starts right now. >> hi, everybody welcome to "closing bell." kelly evans at the new york stock exchange, and you're back. >> i am back and i see my name so this is what i say here i'm bill griffith. tech comeback. technology leading the s&p higher today both the s&p and the dow are on track for record closes, again we'll see whether we can hold on to these games in the final few minutes of trading >> no major transformative deals in the tech and grocery space. nothing with general electric that was happening, a big boxing -- do we call it boxing match in all of this. >> you heard about