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tv   Power Lunch  CNBC  March 27, 2018 1:00pm-3:00pm EDT

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>> the longer you wait, we don't. >> defense stocks are on fire. i think the tail ends are very popular. >> transocean, set to a new higher range, this price is coming back up. >> i'm not selling nvidia. that's for us. "power lunch" starts now sglimpltse. i'm not selling nvidia josh, thank you. welcome, everybody, to power leverage lunch inpredictable spiking, trade fares, rising rates, the threat of technology of regulation, the biggest risk for the mark. and savvy trades for your money. twitter getting clipped, sliding by the noted short seller citron research, saying wait until the senate hears twitter's hidden secret we're going to take a deeper dive and it's being called
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exhilarating, tawdry and moving in almost equal measurer u what is it? the eagerly awaited new book on tiger woods hitting store shelves i believe today. one of the authors will join us. tee it up, because "power lunch" starts right now >> welcome to "power lunch." a choppy day following the big rally yesterday. stocks are swinging. we are higher now for the dow as well as the s&p, sec knowledge is showing signs of weakness by a third of a% the bond markets results of a five-year note auction about to drop it could be a market mover, we're all over that. shares of tesla taking a hit today. the national transportation safety board is sending two investigators to look into a fatal model crash that involved one of the vehicles. we have much more on this straight ahead michelle >> i'm michelle caruso-cabrera
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i'm live tess forum in midtown manhattan. a lot of power players talking business, deals, oil, investments. we have big interviews coming up here as well we're going to have on the chairwoman -- you heard that right -- of the saudi stock exchange she's going to join us talk about the possibility aramco listing, are they ready in lots of other stuff that's happening, and of course also david reuben steen was here earlier, had a chance to sit down with him and talk about carlisle investments, and what he believes is the future of investment opportunities in the kingdom. a lot more coming up on "power lunch. back to you guys. >> in the meantime, let's get you caught up. apple holding a big event in chicago focusing on education. ceo tim cook at the introduces a lower-priced ipad. the cost of buying a home keeps rising, up more than 6%, and
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shares of nvidia es stocks building on yesterday's big gain with another move a bit higher right now. we call it a little bit, though 167 points a couple years was a big move off, though, the best levels of the day. bob pisani following the action for us bob? >> hello, tyler, 170 points not what it used to be the second day in a row this has happened, europe closes, and the market has risen the same thing happened around 1:00 we had a bit of a dip, but we closeded much higher it's been choppy tradingle sectors, utilities, consumer staples, that's normally what you don't want to see.
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also real estate investment trusts up there. you can't move the s&p forward 40% of the s&p tech and banks without having that kind of participate. it's just not possible if you look at the dow leadership, it's the same things it's your nighter, protector and gamble, pfizer, chevron. we have the strange situation with energy stocks there's no rotation into them with oil sitting right north a four-years hide. take a look. oil is up, what, 8% this year so far? we're seeing most of the rest of the oil stocks they're not doing anything oil stocks are down 5% on the year that's a very strange relationship normal the least move in tandem, if not a perfect relationship. there's no rotation. there's still too much money sitting in tech stocks at the there's no rotation from growth stocks which are tech into value stocks, which including the energy names right now. generally a lot of people are starting to believe that shale production has a cap on oil
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prices $60, $65, all of a sudden the production levels start to go up. i think the problem is a lot of people don't believe the long-term future of energy, or at least over $65 or $66 in oil right now. that's a big issue right now, though, we're just south of the highs, 176 on the dow. guys, back to you. >> robert, thank you very much is this rally going to keep rolling on is it a time to buy or maybe to take some profit joining us is margaret patel, a senior manager at wells fargo asset management, and eddie perkin is the chief equity investment office at eaton vance. good to have you here, folks i see in my note, eddie, one thing that stands out. you say it's not good to be known as big anything. not big tobacco, not big pharma, not big tech that would suggest you think it's time to move away from some of the big-temperature names
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that might, just might, be subject to a political sort of microscope. >> i think that's right. when the regulators come and you get classified as a, quote, big industry, that's generally not a good thing, generally not a good thing to have your ceo sitting in front of congress during a hearing discussing whether your business should be regulated more heavy think, and it's been a sector with an incredible run. i wouldal to that positioning is very heavy in these stock exchange they're over-owned we now have a reason to request he that are valuations, and i think it's the right time to be rotating into other sectors. one from regulators who want to go after how big tech handles data, so affecting the likes of a facebook, alphabet and twitter. on the other hand you have the self-drive carp eek on system,
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really feeling the pressure from this uber fatality in arizona. can we go higher can you 12i8 like technology even with the two big direct hits at the sector >> yes, because those two sectors that you mentioned within tech aren't really as big as the whole technology sector there's still many, many technology companies, semiconductors, for example, many software companies that have a high growth path sustainable for many years i think those companies will continue to do well. they have all taken hit in here with bad news from a few companies, but i think it's a great time, to add, because they do have long, sustainable growth >> have you been recommending that investors acto tech positions with we have seen in recent days? >> i have been, because i think when the market dipped down, that provides a good opportunity to get good names a bit on sale, 5%, so% cheaper, yes
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>> eddie, why donnell you responsibility there >> i was at in the valley three weeks ago with a number of colleagues, so i got a chance to see some of these -- and there's certainly a lot to be excited about. i think the valuations are fairly rich. and i think other parts of the market that have lagged in recent quarters are more interesting, so the stocks working today, utilities, reits, that's where i want to put fresh money. there's your debate right there in a nutshell. at the beginning of the year, eddie, you said the biggest underpriced risk was trade i would argue you probably have been borne out on that what do you think is the biggest risk, quickly? >> cyber, geopolitical, and the health of the economy. i think there's a lot of bullishness. in that starts to get questioned >> margie pa sell, eddie perkin,
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thank you very much. a news alert 35 billion in five-year notes up for auction. rick santelli is tracking all the action >> hi, melissa we've been on a string of 34 billion, you have to go back to january 2016 to see that 35 billion, so these are slightly up sized 2.6 for the dutch yield. it wasn't super-tight pricing, 2.50, 2 1/2 times more bids than securities available that's pretty much smack on -- 63.5% were indirect bitters. 8.3 on directs that's below 10%, so it's a little light across the board, even though dealers take 29.2 pertains, charlie-minus, yesterday was a c, but we have to consider with all the deficit
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awareness going on, and all the supply that's coming out, but a lot of t-bills especially. a c isn't so bad, a c-minus isn't so bad, but it has been a while. a real tough solid aa-plus solid auctions where investors were clamoring for supplies tyler, back to you. >> rick, thank you very much pressure heating up on mark zuckerberg, and in europe, want to hear from him on the company's data scandal deidra has the latest. >> that's right, on both sides of the atlantic, british politics asking zuckerberg to appear before parliamentary inquiry, but zuckerberg seems to be dodging again, instead offering up two technology officers still though, guys, there's been no abatement from lawmakers asking for zuckerberg himself. the three congressional committees are asking him to
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testify over data privacy issues now, on top of that, a bipartisan group of 37 state attorneys general are demanding explanations for data practices in a letter addressed to mark zuckerberg, they say, quote, facebook needs to answer our questions so we can know if the company is upholding the end of its bargain with its customers the letter also demands answers to a number of politics and practices about its user remember, that yesterday, the ftc confirming that it is opening a nonpublic probe into the company's practices. all of these development, guys which really feel relentless, and other internet giants, and it's still weighs on facebook shares, which is now down, last i looked about 2% in today's session. guys >> deidra, thank you meantime another social media stock getting caught up, shares
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of twitter getting slammed citron research saying, wait until the senate hears twitter's hidden secret. a price joining us now, james, james, great to have you with us >> thank you >> at the heart of this short call is the data licensing line of the business. the ceo in the last conference call said that data licensing is a high-margin business what percentage of revenues does data licensing make up what kind of margins is twitter getting from this business s. >> data licensing is about 15% of the revenues, so certainly a significant minority, but i think the billers art that could be made is the valuation disconnect, which is why i think it's such an easy target to make
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and 20%-plus out of the google, but trading at double the multiple so it's certainly not, you know. facing the same level of scrutiny as facebook and google on the privacy side. obviously facebook is at the heart of the scandal at the same time, the senate judiciary committee has asked for the ceo of twitter, jack dorsey, to also appear on the hill and testify isn't it possible that twitter could be subject to the same exact reg lading that facebook could soon see >> i think it all boils down to scale.
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which is 10% of where facebook is when you talk about scale and the ability to influence, and influence public opinion, i think facebook should serve more scrutiny >> do you know what citron is referring to >> i don't want to speculate but twitter is very influential in shaping public opinion. >> we know it's the president as plat much of choice, and there are inconsistencies at twitter, how they police some of their -- so i think twitter should be looked ought
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, not normally -- you know, facebook is at the forefront >> just to be back to -- they're collecting data from users, including from direct messages, correct? do all users -- i'm a user of twitter. i'm not sure they -- even from direct messages and actually licensed it oar sold it. >> yeah, i mean. there's a bigger question that people don't know what they're agreeing to. >> which is their text messages. it all boils down to incentives, what is the incentives of this is companies to monetize their platform
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>> what are the roles in society? >> i think you have really nailed it there, james i think that most people don't really have a grip, right? on who has what? >> so that's the story. >> april 10th is the testimony dame james, thank you all right. ge was once the most valuable
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company in the whole wide world. it's not even in the top 40 in the u.s. shares have dipped below $13 day is the bottom finally. we will debate and head back do michelle at the saudi/u.s. summit michelle >> hey there, tyler, one of our producers here from cnbc just spoke with the ceo of the saudi oil company aramco he says they are still targeting a listing for late 2018. what we do know for sure is when they list, we've been told by key leaders they're going to list in saudi arabia so who better than the chairmanwoman of the saudi stock exchange who will join us live along with the ceo of the nasdaq don't move that interview coming up right after this break ♪ ♪ where's jack?
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he's on holiday. what do you need? i need the temperature for pipe five. ask the new guy. the new guy? jack trained him. jack's guidance would be to maintain the temperature at negative 160 degrees celsius. that doesn't sound like jack. actually, jack would say, hey mate, just cool it to minus 160 and we're set. good on ya. oh yeah. that's jack.
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let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to polymoment imam live at the saudi/it's ceo forum being held today in midtown manhattan. it's a day-long conference here is the ceo of saudi's aramco, the oil company, which plans on some kind of publicly traded listing later on this year, the ceo just telling one of our producers they are targeting later this year.
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they're going to list in saudi arabia and also akinda freeman, the ceo of the nasdaq. who's been working closely to get it ready it's going to be the biggest company you have ever listed form is the saudi stock exchange ready? >> we're doing everything to get ready. >> it is 24th largest in the world, it's the emerging markets. we have the seventh position in terms of liquidity in emerging markets, and we are doing everything to get ready for the listing, in partnership also with nasdaq, who we've been working with for the past 20 years. >> adina, what has the nasdaq
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been doing in terms of helping with their backopponent, when it comes to capacity, clearing, all the key things you need? >> sure. >> we've been a partner to the saudi exchange for the last -- and the last two years we've been focused on the core elements in order to welcome in foreign investments to support large listing likes aramco we've been wokking closely with the saudi management to understand exactly how they want to develop their market. >> thank you, adina. the saudi market has been undergoing major change in infrastructure, especially in the last two years we have spun off our depository center last year, we moved the to 2 plus 2, which was a huge project.
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>> can i explain you went from same-day settlement to two-day settlement. >> and to be in klein with what's practiced in other exchanges around the world as well those were a few of the major requirements for international investors, in our efforts to open up the saudi market for foreign investment, which started in 2015, and have been accelerated, especially in the last 12 months. >> so now we are focused on introducing a ccp, and starting. >> ccp is. >> a central counter-party clearing house, so you allow a place where risk is managed up until settlements. >> and then also coupled with introducing into the saudi marketplace, which is a big
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advancement for the capital markets. >> railroad still trueing hard to get the aramco listing. >> we are certainly making sure we well positioned for the choice for the kingdom if they make a decision to list outside of saudi arabia. >> you have been a portfolio manager, manage add brokerage, before the stock exchange, you have a very long history in finance as a woman, are you excited about the changes that are happening in saudi arabia, with the decisions to work and to drive >> of course, and it's been very exciting a lot of change has been happening. women have worked for many, many years, however being -- the decision being her own decision has been there for the past few years. women will be allowed to drive
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in june -- start driving in june. >> are you going to learn to drive? >> yes, of course i will i would love to have the choice right now. and there are a lot of efforts going not and specifically on saudi youth, regardless of gender, you know we have a very young population. there is limitless opportunities today in the kingdom to participate. >> ladies, thank you so much i know the program will get under way, so we want to let you go. >> thank you very much. >> good to have you both on. >> thank you. thank you, michelle. shares of tesla taking a hit on news that investigators are looking into a crash involves a tesla electric suv tiger woods has the golf world buzzing about his comeback, with the masters junior u.s. just a week away, could he actually with inin the ought thor of a new book on tiger joins us next.
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new reports today that the ntsb is investigating a fatal accident involving tesla. >> we talked with the ntsb a few minutes ago. let me bring you up to speed about this investigation it involves a fatal crass involving a tesla model x.
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the ntsb is looking into the fire after the crash, as well as efforts to secure the vehicle from the emergency crews that were there that's all the ntsb is saying. unclear whether or not the vehicle was in autopilot mode or not. tesla issues a statement saying we have been deeply saddened by this accidents and we have offered our full cooperation to authorities, as we work to establish the facts of the incident this investigation, as well as questions about autonomous drive vehicles or vehicles in autopilot modes comes at a time when waymo, widely considered the leader in the development of those vehicles, have anouned a new deal with jaguar it will acquire jaguar i-pace suvs, these 20,000 vehicles will be put into use here in the united states starting in 2020 again they'll be modified so they can be part of waymo's
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self-driving rideshare program here is the ceo talking about why the i-pace appeals to waymo. >> we like the idea of something a bit more compact as you do a tour of the world there are very few full electric vehicles with batteries the size of this jaguar it was really the perfect fit for us. >> as you look at shares of waymo's parent, alphabet, the autonomous rideshare program will be launched in the phoenix area later this year we don't have an exact day at this point guys, back to you. >> thank you very much, phil the times they are a-changin' in saudi arabia women will soon be driving, but we have also heard reports of billion dollar shakedowns. is it safe to do business there? sometimes are terms changing for ge, once the biggest company in the united states, now not even in the top 40 in market value. the stock, though, rebounding
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today. could erthe be more down side ahead or up side "power lunch" returns after this
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hello, everyone. i'm sue herera here is yours cnbc news update a sexual assault scandal widening as authorities are charging william trample of failing to supervise larry nassar he was also accused of groping female students and storing nude student selfies on his campus computer he was arrested last night, announced his leave of absence for medical reasons back in december. a fertility center in cleveland affecting more -- the center now says 4,000 frozen eggs and embryos were lost, twice the original number. is says the storage tank's remote alarm system had been shut off. thousands of mourners gathering to remember michael davidson the 37-year-old father of four was killed last week battles a five-alarm fire on a movie set in harlem.
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he died of smoke inhalation. for the first time since 2011, vinyl records and cds are outselling digital downloads according to the record industry, digit at downloads have posted double-digit declines for three consecutive years. don't throw away the vinyl records. hopefully report stores are coming back. ty, back to you. >> i would never have thought that area talking about throws ownership our cds. >> don't do it a lot of it has to say spotify knows what ear listens to, some people are uncomfortable with that, so they're going back to the old ways. >> sue, thank you. a quick check on the market this hour. it's been a seesaw kind of day as i see, up 131 at 24y 330 and change utilities and telecoms are the
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biggers winners. time for street talk general electric is up today's move comes a day after ge fell to the lowest level since 2009 let's bring in gym core dor. great to have you with us, jim. >> thanks for having me. >> why do you think there's a 6% pop in the stock will we find out today that an investor sniffed some value in the shares >> that's the rumor that warren buffett is interested in the stock, that combined with bouncing off the 52-week low, but we have no knowledge that mr. buffett is interested. in fact we would be surprised,
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if you wanted to buy the company, we think more to his style would be buying a piece of the company. >> may have he bought the stock. so dysvalue in the shares at 12 and change or 13 and change? >> the they about ge is there's so much moves pieces, so many restructuring. there's been a lot of restructuring charges, that 15 million insurance write-off, so i think there's value in ge in the last shoe has dropped. if we don't know the balance sheet is cleaned up, that's the real risk. there is value in the asset. it's a leading company in many segments, but there's risk related to the balance sheet. >> is there a suspected shoe in your view to drop? >> there's so many different things going on, investigations by the s.e.c. and accounting
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investigates, and like i want, reorganization after reorganization there could be more. i need to see a cup 8 quarters of performance against the restructuring plan, hitting targets, nothing else coming on the balance sheet before i can become more positive i am very positive on ge's assets they're leaders in area other space, hell care, they have great assets, just a lot of troubles you think they want to hold on or get rid of some of them >> i think they want to keep their top four segments. definitely predisposed to get rid of transportation and lighting oil and gas has been a difficult segment for them for a couple years, but that market has stabilized they're well positioned in that pace, but they are fightsing pressures. >> with a hold rating. jim, great toll you?
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>> thanks for having me. let's get back to michelle across the river in new york city michelle >> hey there, tyler its it's a who's whoa of ceos here. earlier i sat down with david risenstein the carlisle group owes the domino's pizza chain in saudi arabia, he told me he thinking there would be more investments in saudi arabia, and they'll do more because of the changes they're making because of the country's changes in investment laws. >> i can bay stock in the saudi stock exchange, which you couldn't if you were a foreigner before also i believe can you buy control of companies before it was difficult to buy control of private companies think buyouts can be done. i think there will be more and more investments. >> so you believe the changes are real sometimes they're being met with skepticism >> nothing happens overnight in any country. in the united states, it takes
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some time. saudi arabia is no different, but in time, i do think the conference is going to make change that will make it quite attractive for western and asian capitals as well. >> any concerns about the way they treated the people that they put in the ritz carlton there? does that worry you about rule of law anything like that >> i have concerns about rule of law in every country in which we invest around the world. we always want rule of law, i'm not family with exactly details, but i do think that the place to invest in a region that's most attractive is probably the kingdom of saudi arabia. >> the reason he's so confident about that is because it's the biggest economy in the region, $700 billion in the middle east. beyond that also demographics, the size, the age of the population, so he says when it comes to saudi arabia, if they do make these changes to the investment laws, the reforms that they're talking about, he
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thinking the country will see more investment. music to the ears of the people who are sponsoring this -- because that is the whole message they're trying to deliver and amplify. guys, back to you. >> michelle, thank you very much ten years ago, tiger woods won he 14th major title, then his life felt apart and he has zero majors since. he's healthy, back on the course many golf watchers are thinking and hoping he could have another shining moment next week, up next, the veteran journalist has a new books, and it's a good ow lchwi b "perun" llroadband will be right back you know what they say about the early bird...
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one golfers, tiger woods, is getting of course the major share of attention pretty amazing since tiger has not won a major in almost ten years. his last victory on tour of any sort was back in 2013. today, a new biography about tiger woods hits shelves, a book "new york times" has called exhilarating, depressing, tawdry, moving in almost equal measu measure. armon joins us >> thanks, tyler. >> i've started the book it's a great read. i want to begin with his childhood. there's a lot of patterns that go back generations in the woods family, particularly on his father's side. he was a prodigy to me was the kind of manufactured prodigy, because his father and his mother made damn sure he was a prodigy was he driven, pushed, abused, what
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>> well, i think he was programmed i think that's the word that came to mind time and time again, when jeff benedict and i were putting the book together you almost felt like it was a computer program on one side his first name, you have the "e" for earl, and the "k" for katilda, so literal le surrounded by his parents from birth. as much as earl, mostly earl tried to suggest and make the argument that tiger had a lot of choices in his life, he could have been a fireman, he could have been anything he wanted the fact of the matter is from the earliest days of his life, even before he entered the first day of kindergarten tiger's life was laid out for him. >> the pattern was really striking, because earl the father had been pushed to be a baseball player, i believe by
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his father he tried hard and didn't succeed. it seems to me that earl then was going to make damn sure that his son tiger realized maybe even not so much tiger's passion, but his father's passion, which was golf. >> i don't think there's any question earl discovered golf after he retired from the military, and became an obsession. when earl said, i'm going to teach my son the sport of golf, there's an interesting alchemy here earl is a very complicated man, dealt with racism and discrimination in the military he has plans for his son, and as early as 2 years old, he's touting tiger to jim hill, a very popular television sports anchor in los angeles at the time, saying you have to see my son. to understand tiger woods -- and this was really the driving force of this book for both jeff and i -- there were really two
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questions, who is tiger woods and what's the cost or the price of genius? to understand that you have to understand earl woods is a very xlibted man, but not to forget his mother, kind of the original tiger mom, who gave tiger his iron will, who told him time and time again you don't just beat your opponents, you put your foot on their neck and you stomp them so they remember you. >> this programming, as he was raised, did it contribute to his downtowel or unraveling? >> i don't think there's any question president there were so many factors you think about the price of extreme fame and fortune we liken them to shakes spears in a way you sees this once in a life and never see it again when you compound tiger's own personality, a very nerdy guy, socially awkward he stuttered until he was about
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7 years old, a very private person, spent a lot of time in his room and you have this absolute explosion of fame followed by almost unimaginable fortune, everything at his fingertips, whether it was money from the commercial sponsors, everybody jumped in, nike, ea, american express, gillette, gatorade, it was a who's who of american companies, and then you have the world at your feet when it comes to women. he some dark influences in his life in that area as well. you know, we don't make a lot of judgments in this book we love to just lay out the facts as we found them and let the read ergo on a ride on an anorm a -- enormous arc. >> tiger's experiences with women and infidelity mirrored infidelity that his father
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pursued. can you date a point where it started to go wrong to tiger we remember the day after thanksgiving when he crashed the car into the mailbox and the fire hydrant we remember the first of many girl friends who came public, but had somebody gone wrong before then? >> if it's gone wrong or just experiencing a level of -- we have a chapter called in the be able it's las vegas when the nightclub scene really hits. the really high-end bolts service clubs that hit vegas, whether at the bellagio or mgm, and tilinger was drawn into that world by charlotte barkley and michael jordan barkley a much more man of the people, michael very entitled. and tiger experienced a level of
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fame that gave him a taste to have virtually anything you want at your disposal at that extreme fame was couple this compartmentalization in his life and the immaturity in a lot of ways, it was a recipe for what we saw with the meet oteorc rise and the almost unprecedented fall >> if we can pinpoint the rise and fall, what trajectory is tiger on now >> i think he's on the best trajectory of his life i think a little over a year ago, as you remember, he was -- or a little under a year ago, he was found on the side of the road in florida with a cocktail of drugs in his system he was using to mitigate the debilitating pain in his back. he came out of the opiate addiction. the spinal fusion worked
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he's feeling healthier i saw him at the farmers insurance. i have never seen tiger in the three years jeff and i spent reporting this book that engaged with the fans and smelling the roses, someone described it to me now he's close to the tiger we saw of old when you get to the masters, we may very well see on sunday at augusta, you know, a reminiscence of a living legend come to life >> i'll tell you the obvious if he's in contention on saturday and sunday, the television ratings for cbs will be off the charts. so let me ask you this as i read through the book, he is not, to me, in many places a sympathetic guy. he is a dislikable guy because of his behavior, his sense of entitlement, his profanity something he also, again, shared with his father and his father before that. by the time i finish with this book, is he going to emerge as a
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sympathetic character or not and how do you explain why people still cheer for him and root for him so much when a lot of the pros way back when didn't like him at all? >> that's a very good question i think the word would be empathetic i think you're going to understand tiger woods from this book, from all the reporting that we did, unlike anything that you have read in your life. we spent so much time trying to answer that question, and trust me, jeff and i went through many emotions days when we didn't like him, days when we thought he was completely entitled. days when we found him to be an obnoxious individual, but things have changed in the last year of tiger's life, and i believe that he is going to be a very -- he is right now a very empathetic figure and america loves comebacks, and there hasn't been somebody crawl out of the hole that tiger was in, that deep cavernous hole that he was in
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physically and spiritually, not in my lifetime and he still moves the needle. there's the pga tour, and there's tiger woods. it's been that way since 1996. and it's really refreshing and exciting to see it that way again for however long it lasts. >> as i mentioned, i think a lot of the foellow pros didn't like him when they were competing against him, but the thing they liked is he brought money to the table. >> thank you, and i'm really looking forward to reading the full book on this week before the masters. good to have you with us >> good coming up, how you could own a piece, maybe a small, tiny piece, of the iconic plaza ow lchhol. "perun" will be right back feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that,
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welcome back to "power lunch. i'm seema moda cryptocurrencies under pressure. one telling us it's playing a role in theplice action, especially when it comes to the move of bitcoin. above 9200 would signal a move upward while below 7200 would continue the downward trend we're in a no man's land at 7200 this is not stopping companies from issuing new tokens.
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a group of foreign investors are potentially looking to invest in new york's plaza hotel and is considering an initial coin offering to help fund the transaction. the plaza token would give holders a small portion of equity in a group that is invested in the iconic hotel therefore, backed by an asset. talks still in early stages, but if this specific coin were to debut, it would give carl quintanilla investors the chance to diversify into luxury real estate and receive concessions inside the plaza hotel, including room upgrades. keep in mind, india sahara group has been trying to sell its investment in the hotel for quite some time but has so far failed to find a buyer >> thank you so much >> markets losing a lot of their gains. what's happening here? up just 30 now the dow just a few points higher much more on the markets and this bit of a fade when "power lunch" returns t the market was p nearly twice as much.
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so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. i'm melissa lee. here's what's on the menu. in the last three trading days, the s&p 500 has been up or down 2% or more talk about volatility. how do you position yourself for such outside moves
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>> mozilla pulling its ads from facebook the first company to make such a move after nearly a week off the platform, what have they learned? we'll talk to them >> and tough talk from the president on tariffs seems to be bringing companies to the table, looking to negotiate is his art of the deal tactics starting to pay off? "power lunch" starts right now >> good afternoon, everybody welcome to "power lunch. i'm tyler mathisen a mixed day in the markets as you see right behind me, the nasdaq losing its early morning gains. the dow off session highs and how, up about 50 right now losing steam in just the past few minutes. we had been up more than 240 points, but right now, just up about 50 telecom and utilities and staples, those are the leaders some of your top movers, ge seeing its biggest gain in nearly two years how about that up nearly 6% facebook swooning. now down 14% in a month.
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nvidia falling after saying it will suspend global self-driving testing. and tesla in the red as federal investigators probe a fatal crash involved on one of its suvs and we have lots more on both of those stocks coming right up >> here's what else is happening at this hour news wise, according to reports, the facebook ceo mark zuckerberg will testify in front of congress within the next few weeks. this will be his first time appearing before a congressional committee. arizona's governor suspended uber's ability to test self-driving cars on public roads in the state the move follows that fatal crash last week that killed a pedestrian and speaking of driverless cars, waymo says it will order up to 20,000 jaguar suvs for its driverless fleet the deal is potentially worth more than a billion dollars.
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melissa. >> markets trading mix after monday's major rally let's bring in bob and mike. it looks like the market may be retesting the february lows over the past week. what does that tell us >> it tells you yesterday that i think the market bounce where it had to, and where otherwise if it had not, we would talk about whether the lows would hold and whether we need something deeper that would skirt really an unwind of the uptrend. that's the rising 200-day moving average. it's the longer term trend we didn't violate that i think that's okay. we didn't read a whole lot into the fact we're not having aggressive follow-through here, but we have fragile sentiment around the tech stocks you saw that in the suck sectors. apple rolls over in the middle of the day a day of rest after the strong bounce now, you put room between the lows and current levels, but it doesn't change the idea that we're in the volatile range. >> this is a market very unsure of itself. look at the tech select. we had no leadership from energy stocks, no leadership from
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financials, no leadership from industrials. tech was the last leadership group. look how it rolled over in the middle of the day. that's why we dropped. i want to put up nvidia. about 12:15, nvidia came out with a comment they were going to suspend the self-driving car tests. and the whole market sort of tech market drifted lower. you might say why should everything drift, all the semi-conductored drift lower on this that's what i mean when i say the market is unsure of itself everybody cancelled the bids it wasn't like we saw a rush of selling. the volume didn't go through the roof, but all the bids canceled and we drifted lower in the whole technology space that's what i mean when i say unsure of itself right now >> really good point, bob. and mike, where want to get to you on this. it seems like technology right now is facing a one-two punch. we have facebook and the ones that are rely nlt on data and selling data or advertising model getting hit by possible regulation and the fastest growing part of the semi-conductor sector.
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any semis involving self-driving cars, they're getting hit as well a tech sector under siege right now. >> and one of the common threads there is this was a very popular and arguably crowded sector. just in general. mega cap technology was the driver of the market you have a lot of profits held by a lot of people playing with house money. i guess it leads to an obvious question did we kind of pull forward a lot of the great news about this bright new ai driven future that all these companies are working on these big themes are still intact just a question of how much you paid for them up front in the way of higher stock prices going into january >> last year, when this happened, we got a slight faltering in tech, you would get leadership elsewhere you would get industrials coming forward. that's not happen because of trade war concerns you would get other sectors like energy tried a rally energy is not doing anything we're not getting had rotation we had last year, and there's other fundamental issues weighing on the markets.
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>> thank you very much we appreciate it >> americans are supposed to start taking home more money in their paychecks this year because of the tax cuts. in the latest installment of the cnbc all america economic survey, we asked, how many people noticed i'm going to go home and binge watch all of the installments of the economic survey. >> well, especially this one, tyler. not only because you're in it and but because the answers are quite astonishing. our exclusive cnbc all america survey, we surveyed 800 americans around the country, and we asked this question, and i didn't expect this answer. have you noticed any increase in your takehome pay from the tax cuts just 32%, one out of three americans say yes. 52% say no and 16%, i think this may be smaller than it really is, they're not sure let's go on, and we asked this 32% here, we asked them, how much have yassin 38% say a great to fair amount
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48% say some or a little, and 22% say not so much. now let's look at this by income you can see, this makes sense actually as you go down in income scale, the percentage of americans who see it in their paychecks, it goes down as well. 42% for those with incomes over 75,000, just 14% for incomes under $30,000. just to be clear, somewhere in here is a cut-off of people who shouldn't pay any federal income tax at all and then you could also see in the next screen, there's a big partisan component to this 52% of republicans say, yeah, i saw it 20% of democrats say no. the independents, though, this is where we look at what the right story is sometimes the independents look a lot more like democrats 19% have not seen it put it all together, and we asked about the different parties and aspects of the economy. 40% tell us the democrats are the best for looking out for the middle class 34% say the gop is best for the economy overall, and 37% also say the gop is best for jobs
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and tyler, if you -- you can watch it on cnbc.com, and also several articles about this survey on cnbc.com >> thank you very much steve liesman. >> another volatile session in the markets today. stocks well off the midday highs as the dow swings between negative and positive right now. let's bring in chris, the chief investment officer with regent atlantic, and mark aible, director of investments with russell investments. mark, let me begin with you because you point out in the notes i read an interesting push-pull at play here and hasn't been for some time. the fed pulling money out, tightening interest rates, buying up, reducing its balance sheet. that is monetary squeeze on the other hand, you have fiscal stimulus. lower taxes and more spending. who's going to win >> well, i think that you're seeing that play out right now which is probably why we're basically at a zero return with all the volatility we had this
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year we do think it's a push-pull within the united states, and why we continue to believe it's a little easier at this point, probably outside of the u.s., where you have more of just the monetary effect that worked so well in the united states. really playing out, particularly in places like europe and japan. so we think this is a great year for multi-asset framework because you have the levers to go other places. we agree this is bob and mike alluded to it in their talk just before this segment, you are seeing this kind of pug-pull going on not a lot of leadership. we think that will continue in the u.s. market. >> chris, how do you analyze fiscal and monetary policy in what you're doing with your clients' money >> you know, the biggest thing i think came out of the tax cuts was the corporate tax cut. that's where i think that's a benefit for stocks and you'll see that both in the reduced taxes and also in the repatriation of dollars and money getting paid out in the form of dividends. that's going to bebetter for the stock market >> so mark says maybe diversify
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overseas because of just the differences in how the economies are growing. do you agree with that >> i agree, definitely diversify overseas i would also look for places in the u.s. that have lagged behind one of those areas like pipelines. pipe line investment has lagged behind it's a part of the market that's undergone a change from an mlp structure to a corporate structure. as it goes through the change, investors have shied away and are rotating out who are the owners of the assets >> got a name? >> one, but across the board, you'll see the pipeline sector do well. i would own a broad diversification of that. >> mark, you like em, emerging markets right now? >> we do we certainly think the leadership we have seen so far this year is playing off last year it's largely just a valuation, a demographic play 85% of the world population, stocks are still cheeping over a longer term period really got decimated in '08 and are just starting to come back
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relative to developed markets. and gdp growth at 4.5% to 5% so we think this is a good time, and again, plays into kind of, there are opportunities out there. we agree that particularly in the u.s., it's probably more of a value over growth, moving into some of the areas that do benefit from tax reform, but within non-u.s. markets, emerging markets would be a place we would be. >> are we seeing the turn from growth to value? is that what we're witnessing in the market, mark because value investors have been waiting for a long time for it to be their time to shine >> yeah. we certainly haven't seen it year to date, the groat indexes, the russell indexes have still outperformed the value, but i think as we move forward, tax reform is good for industrials i think some of the depreciation of immediate expensing doesn't get talked about as much financials should do well as well, the higher tax rate. we think the turn will come. maybe what we're seeing over recent segments with technology, we still like technology we just like it in emerging
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markets right now more so than in the u.s >> a name i don't see on too many buy lists is prudential financial. a quick thought on why it's on yours. >> it's come off the list as a significant financial risk and so that's just going to allow it to do more -- >> as a significant financial institution. >> right, so that's just going to allow - >>open it up >> it's going to open it up. it's in a great position it's selling at a great price. it's a great stock i agree with mark. this could be the year where we see value rotate back into being a leadership especially as you see these different sectors like technology shake out, value stocks have a chance to come alive. >> thank you very much we appreciate your time. >> thanks. >> thank you the saudi u.s. ceo forum is under way in new york, where ceos from major saudi and u.s. companies across a wide range ofistries are meeting to talk about investments and trade deals. michelle caruso-cabrera is there. she got a chance to sit down with some of the biggest players out there. >> hey, there.
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and just the last hour, the saudi government has announced mous of more than $20 billion. mou stands for memorandums of understanding, not actual deals but good intentions, and some of the examples they cited that aramco, the saudi oil company, has signed a cloud partnership with google and also a cybersecurity partnership with rathe eon as well. the point is to bring investment to saudi arabia based on change happen to the economy to diversify away from oil. one of the big changes is a lot more entertainment, more permissiveness toward entertainment and an entire entertainment authority tasked with trying to capture the billions of dollars that saudis used to spend overseas, because there was so little to do at home, and try to get them to spend that money in the kingdom. i sat down with the head of the general entertainment authority, and he told me how they're trying to get those people to stay home and spend that money at home. >> saudis are, you know, they travel a lot
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they like to go to movies and to concerts and shows you know, and plays. therefore, the expected spending annually is roughly $20 billion u.s. dollars in tourism and entertainment. therefore, the opportunity to catch a big part of this spending is massive. we are starting from like almost zero >> what percentage of gdp do you hope entertainment wil eventually be in saudi arab yeah from where it is today >> today, it's very low. about .5%. we aim to take it up to the 6% by 2030, which is close to the global average >> some of the big events they've had, a jazz festival, a comic-con, thousands and thousands of people, movies. you read about that a lot in the papers all kinds of concerts. they're going to raise the number of entertainment events by the thousands in saudi arabia, and as part of his trip here to the united states, he's meeting with the ceos of every
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major entertainment company in the u.s. to try to get them to invest there he's very excited about six flags opening up a theme park in saudi arabia guys, back to you. >> fascinating stuff going on out there. thank you. michelle caruso-cabrera. >> here's what's coming up on "power lunch." major setbacks for autonomous vehicles, rocking two stocks today. tesla and nvidia both down big we'll bring you the late rs. >> the art of the deal, could president trump's negotiation tactics with china and north korea be working we'll debate that. pame ss, finding value in dertnttore stocks. all that and much more coming up on "power lunch. you know what's awesome? gig-speed internet.
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xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. shares of nvidia and tesla sliding on concerns about autonomous vehicles. nvidia has suspended self-driving tests federal investigators are probing it a fatal crash in california romit covers both of these stocks >> hi, melissa >> i want to deal with nvidia here we have a 5.5% decline in nvidia how big of a percentage of revenues is a self-driving chip area for the company >> it's minuscule. you know, it's less than 1% today, but when you think about nvidia's potential to grow over the next several years, you know, this is going to be an important contributor. >> when you plug if to your model, i'm not sure how you're
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doing this, but let's say for some reason the growth in self-driving chips or chips that feed autonomous vehicles, that goes down by a factor of x, how does that impact earnings? >> you know, the impact to earnings is negligible what i would say - >> or how about growth, earnings growth does it impact growth? >> it's more like this you know, there's a tremendous opportunity to save lives using nvidia's and intel's autonomous driving technology the incident that happened last week, though, could do harm to what i would say is probably an already fragile consumer trust base, and spur regulation that could really stifle some of the work that they're doing. so the impact is not earnings in the foreseeable future i think the impact is more of the multiple when you're seeing today. >> what multiple do you think nvidia should have >> i mean, you know, we're
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valuation sensitive, so i look at the group that trades at 15 to 17 times earnings i think nvidia deserves a premium, but not one that the market is ascribing today. 25 to 30 times seems rich in our opinion. >> let's turn to tesla what do you think there? how much is this fatal accident going to affect the company or its stock? and put that in the context of their ongoing seeming production problems >> i mean, there's been no shortage of negative news on tesla over the last several weeks. you had executive departures, ongoing model reproduction issues, people worried about cash flow. now this you know, the crash from a couple days ago, you know, i don't know what the causes were. but what i would say is that the crash is probably going to highlight some of the uncertainties around just safety of electric cars especially as tesla starts to
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introduce more and more autonomous features. >> the crash highlights the potential scrutiny that self-driving vehicles could have we have skepticism about production if i'm a contrarian, i'm thinking that tesla sets up really well going into deliveries next week delivery targets, which many people on the street don't believe tesla is going to meet anyway >> i totally agree with you. i think the sentiment couldn't be any worse it feels like a lot of the news is basically noise i think when those results come out next week, you're going to see that they have made progress on model 3 production. i'm not saying they're going to hit the targets that they committed to the street, but i do think you're going to see progress and you know, within the next several months, they're going to get over the hump. when that happens, they'll be profitable, and i actually think tesla, if you are willing to look out a couple years on revenues, it's not an expensive stock. >> where do you see the stock in a couple years >> you know, our target is $500.
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which is substantially higher than where it is today and you know, we value tesla against a batch of companies, not just automotive companies but technology companies that trade at three, four, five times revenue. if they can get to our revenue target in 2021, which is a little more than $50 billion in revenue, keep in mind this company is growing you know, 50 to 100% per year, then we think they could get there. >> all right, romit, thanks for your time. >> let's get to ylan mui in d.c. with developing news on facebook >> reports that facebook's ceo mark zuckerberg would appear before a house committee on april 12th are incorrect that's according to a spokesperson for the house energy and commerce committee. she tells me that the committee is continuing to work with facebook to determine a time and day for mr. zuckerberg to testify. that april 12th date not on the books, at least not yet so far
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also, unclear at this point where zuckerberg would be testifying before a senate committee on april 10th, just a few days before. we'll let you know if we hear anything on that as well >> thank you very much >> well, when you think about industrials. you might think about airlines or chemicals or construction but it turns out the market's definition of an industrial is much wider than you might think. we'll explain that next. and mozilla was the first company to pull its ads from facebook over that data scandal, after nearly a week, what difference has mozilla seen and will the company consider going back on to facebook? we'll talk to a representative of the firm next
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let's get to deirdre with a market flash on twitter. >> hey, melissa. twitter responding to a report by citron research earlier today that said twitter is most vulnerable to privacy regulation and shorting the stock, putting a near term target of $25.
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in a statement to cnbc, twitter says twitter is public by its nature public tweets are viewable and searchable by anyone this is the power of twitter it says number two, our licensing, our data licensing business helps capture the amazing uses of twitter by building on that data. our licensing business does not sell dms any reports to the contrary are inaccurate coming out against that report and making a distinction between what twitter does as a platform and what facebook does in light of all the data security concerns hitting social media stocks right now hard. and raising questions about new regulation twitter shares down as much as 10% today falling into bear market territory >> so deirdre, is there -- is twitter making a distinction between data it sells versus data it mines for its own use in selling advertising? >> well, it's saying one thing that the citron research report says that it accused of the firm
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of selling dms twitter is coming out saying that its data licensing business does not do that any reports to the contrary are inaccurate but saying, remember, this is different. facebook, you kind of have to opt-in, open an account, same thing on twitter, but tweets, unless they're made private, they're public twitter saying by nature, twitter is public. some of the concerns affecting facebook wouldn't be as relevant to twitter >> so it only sells the data gleaned from tweets that are tweeted publicly as opposed to direct messages. that's not touched >> it's saying that it does not sell any data. the citron research report says it makes up a significant amount of its revenue, twitter does not directly address this. basically just saying by nature, it is public and saying that its data licensing business helps capture the amazing uses of twitter by building on that public data not sure what they mean. >> what does that mean
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it's nice language, but i don't get it, to be honest >> that's a good question. we'll go back to them and ask them this, but i think what they did come out about, they said they do not sell anything relating to dms, but i think there are a lot of other questions. >> the dm is the direct message, right? >> yes, excuse me. direct message >> all right well, if we get answers, deirdre, come on back. we'll share them >> we'll keep searching for them >> sounds great. thank you. >> sectornomics time eric joins us with a look at the industrials and why the definition of the sector may be wider than you might think >> that's right. good to see you guys the industrial sector had a wild ride this year it's seen anything from steel tariffs hurting manufacturers, and many company specific issues like ge having their own individual effects but when you put it all together, as an overall sector, the industrials have averaged to match the rest of the market it's been middle of the pack when ranked among the other sectors with performance results not too different from the
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overall market for the month of march, industrials are down 3% and for the year, down 1%. the industrial sector is right in the middle in terms of being an oversold sector that's because, like you said, tyler, the definition of an industrials company is extremely fuzzy. we know the sector has the usual suspects, airlines, defense contractors, chemical makers, construction and manufacturing, but it also has equifax, tv measurement giant nielsen, so that's why you have to be really careful when dealing with these big sectors, especially when buying sector-based etfs what is an industrial company? that question does not always have an obvious answer >> how do these qualify as an industrial and further complicating matters. you have the most widely quoted index of them all, the dow jones industrials, that has a lot of companies that similarly aren't on their face industrials. you have banks >> so the dow jones industrials, if you go all the way back, before we were ever born and on
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a great grandfathers had the dow, those were actually industrial companies you look at that original list, it's, you know, steel and paint and chemicals. then just over time, it went from 12 to 30. they added all these companies but things like equifax and nielsen, i think partly why they're in there is because their customers are businesses big companies buy from them, but that doesn't explain why airlines are in the industrials because generally, you and me as consumers would be the big customers for airlines so in a way, it starts to look a lot like the market because a lot of other companies get dumped in industrials if they're not clearly a tech company or a real estate or utility so it's a real interesting sector to be careful with when trading and making these comparisons. >> all right, eric thank you very much. >> let's send it over to sue herera for a news update >> hello, everyone here's what's happening at this hour louisiana's attorney general ruling out criminal charges against two white baton rouge
quote
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police officers in the fatal shooting of alton sterling in july of 2016 sterling was black the decision coming nearly 11 months after the justice department ruled out federal charges in that shooting >> house speaker paul ryan addressing the check parliament. he says the solidarity of allies in response to the attack on a former russian spy and his daughter in britain is now more important than ever. >> we must see this for what it is this is an attempt to sow discord among our people, to divide allies, and to destabilize democratic institutions we cannot and we will not tolerate this. >> a new study from the university of north carolina says some ingredients in e-cigarettes are more harmful than others. researchers created a new screening technique to test the toxicity of over 700 types of e-liquid flavors some were more toxic than
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nicotine alone that's the news update this hour melissa, i'll send it back to you. >> sue, thank you. >> is north korean leader kim jong-un in china was he in china? if he was, what could that signal for u.s./china relations? at aadn ow lchth'she o"perun." when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business,
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was he or wasn't he? did north korea's leader kim jong-un really make a secret chip to china? eunice yun joins us live from beijing. >> hey, melissa. that's the question that everyone in beijing was asking today. the chinese capital was abuzz with speculation as to whether or not north korea's leader kim jong-un was in town meeting with president xi jinping this came after reports that his special heavily armored bulletproof train was spotted crossing the north korea/china border on sunday now, if he was here meeting with china's leaders, the timing would be extremely important that's because kim is scheduled to hold a summit with south korean president moon jae-in in late april and there's that possible meeting with president trump after that so analysts have been
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speculating that kim was here in order to confer with chinese official s who remain his closet allies north korea watchers believe the relationship between china and north korea have come under strain because beijing has been more strictly adhering to u.n. sanctions. at the same time, they believe that beijing is supportive of kim's efforts to reach out to the south koreans and the americans in order to diffuse the nuclear standoff now, for investors, any diplomatic moves, even if done in secret, would probably be seen as positive given all the disruption we saw that rising tensions had caused in the markets earlier in the year. but even so, we still really don't know whether or not he was here there have been rumors flying around that it was his sister in the train. also that it could have been a senior north korean official but the chinese foreign ministry also responded to this when they were asked a question. they said they had no idea whether or not he was in town, but that any information, if it
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were true, would emerge in due course now, one interesting little note here is that if he were in town, then this would have been the first trip that he made outside of the country since he took power in 2011. melissa. >> all right, eunice, thank you. >> so is the president's negotiating strategy actually working? beyond global ceo sandra navidi called his approach ineffective and antagonistic, while dean chang believes these tactics may be getting results so, you come at it, folks, from very different points of view. ladies first why do you believe, sandra, that these tactics aren't succeeding or likely to succeed when we see what has happened, which is the possibility of a meeting between the president and the north korean leader, and a meeting between the north and south korean leader. isn't it possible that the
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negotiating tactics are causing these things to happen >> well, let's say it's not entirely impossible, but there's no evidence of a direct correlation between these events, and if you wonder, is the situation really better, what has changed from trump's predecessors to right now? he hasn't really achieved anything on the contrary, he's exacerbated risks, especially the risk of escalation of war. >> how, dean, do you react to that has anything changed from where you sit? >> well, certainly when we look at how the chinese, for example, are acting, they are clearly being put on their back foot. but i would also really have to disagree here in blaming the united states for raising the prospect for war north korea is the country that has conducted nuclear tests, missile tests, overflown japan to turn around and say it's the united states's fault would seem to be blaming, if anyone, the people who are guaranteeing security, not the people who are
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disrupting it. >> sandra, how do you respond to that >> just because i'm saying that the u.s. is exacerbating the risk of a nuclear war is not absolving north korea in any shape or form. but we have to -- we must consider that donald trump has said in the past why do we have nukes if we don't use them and then recently, bolton has made the case in the "wall street journal" that a war would be entirely justified. i think they're talking about it in a very laissez-faire manner that is dangerous. to be an efficient negotiator, you have to be well informed, you have to have a strategy, you have to have expert advice none of these factors trump has. he also doesn't give anyone a way out, and he has his back against the wall saying north korea must entirely denuclearize >> going back to trade here, dean in terms of trump's tactics, you say they're working, they're putting everybody off center and that works to his advantage.
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what do you use to say that's working? the fact that both of them are at the negotiating table >> for example, what we have seen was a lot of very, very scary talk, whether it was about chorus, where other free trade agreements, but what we have seen instead is that south korea and the united states have reached a mutually agreeable solution, which leaves both sides, both unhappy but also happier. by the way, it's also left south korea with a permanent exemption to tariffs we have seen the chinese take a position on the tariffs that have been threatened against them which is a lot less than i think a lot of folks were worried about. china is clearly signaling i does not want to engage in a trade war, and you know, it's the chinese who are also creating room for concessions. >> sandra, what do you think the chinese make of mr. trump and his negotiating positions? >> well, i think they're kind of taking a little bit of a wit and see approach they have enormous market power
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that they're entirely aware of 1.4 billion people and also, i think they're very -- i think it would have been much smarter for trump to create a united front with europe to negotiate with china because china clearly does employ unfair trade practices, and also to stay in the tpp agreement, that would have given him a lot more leverage. now, he's basically completely isolated, and i guess his proponents argue with the madman theory, but that presupposed that trump has a strategy and has expert knowledge, which i think he clearly lacks in addition, he fired tillerson, and so forth, so i think he's very erratic in his behavior, and that's not a good thing in this situation >> folks, thank you very much. sandra, dean, we appreciate your time today facebook is failing again today. now down 14% in the past month this as more companies pull ads from the social media giant. straight ahead, we'll talk to
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firefox web browser mozilla, the first to announce that it is pulling ads from facebook following the data scandal pep boys, sonos, and commerce bank are the others to hit the pause button so far. the chief marketing officer for mozilla is with us what has life been like without advertising on facebook? >> well, first of all, as an organization, many people know us because of firebox, but what not everyone knows is we're also an advocacy organization our focus is making sure people on the internet have control over their own experience. for us as an organization, that flows into everything we do, including our marketing pract e practices. when we made the decision to pause advertising on facebook, we didn't take it lightly. it's been a powerful channel for us, and our marketing team has to work harder right now >> have you noticed a difference in the number of downloads, for instance there are metrics where you can say we're feeling it we're feeling that the facebook as a platform is powerful in
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terms of an ad tool? >> you know, what we have been able to do because our organization has had a fairly sophisticated view into digital advertising generally is we have been able to replace our spending into different channels wee not seeing a decrease in downloads at the time being, but our team is working quite a bit harder to displace the spending and the advertising work happening on the channel it has implications for us from an operational perspective for sure, but we're confident we can mitigate it over time with our team working harder. >> something stood out to me in the statement regarding the pulling of ads from facebook mozilla has found facebook's default settings leave open to a lot of data, particularly with respect to third party apps, what did you find? >> two things that happened at mozilla over the past two weeks. the first is we introduced a pudition addressing exactly the question you asked when we looked into the default settings for third-party data shared with -- third party
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applications having consumer data shared with it, we weren't comfortable with the amount of information it shares on default. the petition we started has 77,000 people who signed it in a week, and it's asking for facebook to change the default position for how they share data with third-party applications. that was in addition to pausing our advertising on facebook. we don't want facebook out of default to just share information from the people using their product to third party applications we would like individuals to choose what they share >> what concerns you most about this facebook situation? what was their biggest foul? >> well, the status quo with technology companies and how they treat people on the internet isn't okay right now. the internet is not as healthy as it should be. technology companies are treating people like they're robotic lawyers. they expect them to go in and read tens of thousands of pages or words that are attached to terms of service that they ultimately have to hit accept and move on to get the utility of the product that's not okay. technology companies need to treat people like they're human
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beings first that means they need to communicate to them in a way that is human. facebook in particular, in this particular instance, we have the biggest problem with that there's such a lack of transparency about what's actually happening it's confusing if foul here is when you have a situation you need to deal with, you need to be really clear about exactly how you're going to solve it, and you need to be completely transparent about the steps you're taking. that's not happening yet >> thanks for your time. we appreciate it >> absolutely. thanks for having me >> it is confusing it is really confusing >> think of all the confusing disclaimers we sort through all the time particularly when it comes to financial products right? >> absolutely. >> somehow - >> the little mouse type goes on and on i go, yeah >> you scroll down, you say accept >> all right retail rallying, and department stores leading the way should you buy brick and mortar retail or is now the time to leave the mall we'll debate that straight ahead on "power.
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all three major averages are in the red technology, the nasdaq is close to session lows. down by 1.6% here are some big losers nvidia is off by 6.5%.
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facebook down almost 4%. google as well as microsoft and apple. we should note that s&p 500 technology, that sector is down by almost two full percentage points be watching that going into the close. time now for some trading nation here let's take a look at department stores holding up today as the rest of the market is in the red. nordstrom, jp penny, macy's all up michael and matt joining us. you like nordstrom specifically, matt, why? >> on a couple different reasons. number one, the rally in the whole group that started in november, you know, obviously the -- sorry, the holiday sales had a lot to do with that and also had to do with a huge amount of short covering you saw huge short interest in macy's and jcpenney but not nordstrom. that stock has lagged a little bit. it's coming up and going up on a technical basis. it's bumping up against its
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trend line going back to the 2015 highs also making a symmetrical triangle formation if you can break above that level, it should be quite positive again, the thing is it hasn't rallied near as much as the other ones they seem to be getting ahead of themselves people might want to think about swapping out jcpenney and macy's to nordstrom. >> your thoughts >> there were bankruptcies, restructurings but we think they're on a path to recovery, but it will be case by case, store by store they are still facing headwinds. technology is changes ever so present. we think that fundamentals matter look at earnings look at their sales and how are they reinventing themselves with their management having an entrepreneurial vision on the future of retail. >> quickly, matt, while i have you, as we are watching technology on the s&p 500 hit session lows, how do the charts look for tech?
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>> one of the things that's very strange on the technology stocks yesterday, we could see it was incredibly taken higher by the big cap names, as we saw in the advanced decline in nasdaq 100 it was 50 to 1 on the plus side but 2 to 1 for the rest of the nasdaq it was the big cap names of course, we have four or five big cap names all falling today and rolling back over. with the big cap names not doing well, this group is definitely going to have some problems. >> guys, thanks for your time and thoughts matt and michael for more market insights, head to our website, tradingnation.cnbc.com check, please, is next >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> when markets get volatile, don't be afraid to admit you don't know where things are headed when you're uncertain what to do, sitting on the sidelines is not a bad idea nketimes the best trade to ma iso trade at all
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not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com. check, please. >> two big sectors, financials and technical are continuing to sink technology down by 2%. we're watching shares of tesla ahead of the delivery numbers next week. tesla shares are now down more than 7%. only two other times in its trading history has the stock closed down more than 7% so, this could be key here
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keep a watch at the 280 level. that's been past support on this stock. we'll watch that meantime, let's head it down to michelle in new york at the saudi/u.s. forum. >> yeah, you know, saudi arabia is doing a fullcourt press to try to convince the world it is changing and changing dramatically there are a lot of vested interests, old habits die hard if the changes really do happen that have been promised by the new crown prince, mohammed bin salman, this will be a very different country. that's what they're trying to convince investors of here today. i hate to use the a cliche, time will tell whether or not they're successful >> can you imagine a world in which there's a six flags in saudi arabia >> and women are driving to it. >> and women are driving to it saudi women wearing flowing robes -- >> after going to the dominos. >> after going to the domino's and movie theater.
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brave new world there. >> there's a joke in there somewhere, i guess, but i'm not going to try to find it. tiger woods' interview heading into the masters, fascinating stuff. prediction here, if he is in contention saturday and sunday, the golf ratings will be the highest of all time. >> session lows across from all three major averages "closing bell" starts right now. >> thanks, guys. live from the new york stock exchange, this is the "closing bell." i'm kelly evans. >> i'm wilfred frost two breaking news stories. one on deutsche bank but first to washington with kayla tausche. >> reporter: a few headlines on trade from the white house press briefing that just ended press secretary sarah sanders said an agreement in principle had been made on trade between u.s. and south korea there's a five-year free trade agre

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