Skip to main content

tv   Power Lunch  CNBC  May 4, 2018 1:00pm-3:00pm EDT

1:00 pm
down significantly. i think it's a great buying opportunity. >> 15 seconds. >> i agree on the home builders. the ten most popular ages will be all under 35 in the united states. that's great long-term for the space. >> thanks. have a great weekend. when you're saying -- i'm melissa lee here's what's on the menu. jobs in the america the unemployment rate falling to its lowest level since 2000. what the money means for your money? the woodstock capitalism set to get under way. thousands blocking to berkshire hathaway meeting and buffett is making headlines. a jaw-dropping bet on apple. we are there live and they're off. the kentucky derby's tomorrow. church hill is riding high at more than 60% to the past year. the ceo joins us live. happy friday. we are in the home stretch. "power lunch" starts right now.
1:01 pm
♪ welcome to "power lunch" everybody. i'm tyler mathisen. your money making some nice gains this hour. we are at a round session highs. the dow up triple digits, tech and consumer staples, they are your best prfg s&p sectors at the moment. apple is the biggest gainer in the dow. the stock hitting all-time highs and we know why. more on that one ahead. transports on the move, avis, american airlines, those are the ones leading the gains there, michelle. >> thank you, tyler. other headlines this hour. president trump is set to speak at the annual nra convention in dallas this hour. vice president mike pence and the nra's wayne lapierre also speaking. we'll head their live in just a few minutes. the swedish panel that awards the nobel prize in price is not going to name a lauerate this year because of a sexual
1:02 pm
abuse scandal that's engulfing the group. this is the second time since world war ii they will not announce a winner. ge considering chapter 11 for its subprime mortgage business. bankruptcy would let the unit zeal with potential legal losses. sarah. the april jobs report, here are the five biggest takeaways for you. the unemployment rate hitting a three handle, following to 3.9%. the so-called unemployment rate following to 7.8%. that's the lowest level for that one since july 2001. u 6 is a broader measure of unemployment taking into account part-time workers who would prefer full time jobs. also takes into account discouraged workers looking for work. the participation rate which is the share of the population in the labor force slipping to 62.8% in pay. hourly pay rising only .10th of a percent. that missed estimates.
1:03 pm
america shrinking labor pool continues to be a problem. another 410,000 folks dropping out of the workforce, a big reason for the drop in the headline unemployment rate. plenty of demand for workers, they're just not getting paid all that great. >> stocks are surging that the hour. the dow rocketing higher. it's more than just apple here. bob pisani has the latest. >> reporter: we have a pretty broad rally. it's about time that jobs report, melissa, it was about perfect for the bulls. we still had job growth about inline with expectations and wage growth, well, not great but still not so strong that anybody's going to complain about inflation. it was a sign of how bad things are, that we actually opened down but the down print, the worst print was right at the open and the minute we started going into positive territory, you saw that push up into green there, volume picked up. more buyers than sellers very quickly as soon as we went into positive territory and the right stuff started to turn around. here's the gain right now. the bulls have got to regain
1:04 pm
control of the narrative because they cannot answer this question about how much global growth is slowing. bears say t bulls say wait a minute it's just a slow down temporarily. we can't answer the question now but today helped a lot. the right sectors turned around. let me just show you what's strong today. sem semi-conductor is beaten up badly. industrials are disaster since caterpillar. these are the ones that started turning around. materials are also crumby and even banks today as the ten year finally turned around. this started yesterday afternoon. somebody notice, some people noticed the seconders have been stupidly overbought in the last couple weeks and we had a nice bounce this is from the middle of the day yesterday. semi-conductors, materials, industrials, these are all the sectors that were worse performers in the last few weeks. people starting to pick at these beaten up sectors. there's been a lot of damage done. the dollar's very strong and its killing these emerging market stocks etfs that are out there
1:05 pm
that have been hit badly in the last week, turkey, poland, indonesia, mexico all down and even some of these emerging market bonds that are out there. they get hit a lot when the dollar starts rising. there's one big etf in that space. >> thank you, bob. despite all of the volatility our next two guests expect stocks to continue moving higher. let's bring in joe durand with united capital. and dan won tropski with janning montgomery scott. good to have you here. bob pisani talked about, joe, the fact that this number out today i hate to use the word goldilocks but, wow, no big signs of inflation, is this a recipe for stocks to go higher from here, joe >> i think it is. if you look, the driving force for this stock market is interest rates so when we hit 3% of the ten year note which we've done many times in the last
1:06 pm
couple of years, it looked for a while like we were busting through and on our way to 3.5 to 4%. that would have rattled stocks and just the anticipation of that was a problem. when we came back down from 3% it held steady on that ten year note, it's made everyone a lot less concerned and what we've seen is the global economies not going quite as quickly. that gives the fed breathing room. biggest concern would be wage growth and that's not happening so it's not great for workers but it's pretty good for investors. >> dan, where do you stand on this market? is up nearly 300 points right now the correct way to think about the markets or was down nearly 400 yesterday the way you would think about the markets? >> it depends what your focus is. short-term i think you can still see a choppy trading range. there's enough noise out there to keep it as such and volumes bob noted picked up, but volumes are relatively low so it doesn't create much to create that choppiness from a longer term standpoint i would agree with
1:07 pm
joe. we remain bullish on the markets and the u.s. economy longer term. we think the numbers today really represent the type of growth we're seeing demographically as millennials march toward household information. you'll see new household formation reach all-time highs within the next ten years. these guys will be our biggest producers, investors, consumers -- >> technically speaking, dan -- what about the markets do you like at this point if you take a look at the s&p 500 since the volatility started picking up, we've been in a range, so what breaks us out for you to be bullish from the chart perspective? >> we're bullish longer term. from a short-term trading perspective to get tactical, probably 2,700 on the s&p would put the bulls back in charge. i'd like to see that on volume. as bob noted breadth has been good, participation excuse me has been good and you can see that since the january/february
1:08 pm
correction here, we've been basing around 2,500 -- 2550, 2,600 on the s&p it's right around the 200 day moving average. holding in tight. against all this noise that we're talking about. the market multiple is relatively inexpensive here. i use around 16, 17 times on the s&p -- >> joe, we're still sort of in correctionist territory whether we're technically there or not and today 1% gains for all of the three major indexes. why do you think there's a big move today apart from the employment report, which was about as good as it gets. i wonder whether people look at what you buffett did with apple and really extrapolate that as the best investor in the country is saying go in and buy heavy? >> i think that's maybe a little -- i think it's more about what you see. you've got consumer staples really predictable growth companies going down a lot.
1:09 pm
as bob pointed out earlier, we've seen a lot of serious corrections. you have to realize the market typically only goes up in a vertical line about 15% to 20% of the time, the rest of the time it's in consolidation mode and we're in consolidation mode. we're either going to have a shot 10% to 15% drop in the next few months or we'll just going to muddle along and make a lot of noise. higher interest rates lead to higher volatility. they make stocks more expensive. don't try to time it. the trend is good. it's just going to be a little noisy because rates are higher and you need to be comfortable that sometimes, most of the time, the stocks just make noise. >> and sometimes you got to white knuckle it. thank you, guys. president trump is set to speak at the nra's annual conference in dallas. that in the next half hour but before he left washington, he spoke about the economy, jobs
1:10 pm
and rudy giuliani. eamon javers is live at the white house in our d.c. bureau. >> just down the road from the white house today. >> i know that's not the white house behind you. >> reporter: the big one with the dome is the capital building. >> got you. >> reporter: look, we're only at "power lunch" time in the day today and the president has talking to reporters three times. he's in a very chatty mood today. he talked about what he wanted people to be focusing on today and that's the jobs report and the economy. the jobs report is very good, he said, the big thing to him was cracking below 4% in terms of unemployment. he said that we are at full employment in this country and he's proud of that and the stock markets move under his leadership but the thing that's going to get everybody's attention today is what the president said about former new york city mayor rudy giuliani. you remember that giuliani is now the president's attorney, went on national tv earlier this week and in an interview in which he said that the president
1:11 pm
had, in fact, reimbursed his lawyer for payments to stormy daniels, the former porn star to keep her quiet about her allegations that the president had an affair with her while he was married to melania. now, the president came out today and said something different about what giuliani said, suggesting maybe he didn't have all of his facts straight. here's what he said. >> he just started a day ago, but he really has his heart in to it, he's working hard, he's learning the subject matter and he's going to be issuing a statement too, but he is a great guy. he knows it's a witch hunt. that's what he knows. he's seen a lot of them. and he said he's never seen anything so horrible. rudy knows it's a witch hunt. he started yesterday. he'll get his facts straight. >> reporter: the president there suggesting that rudy giuliani didn't have his facts straight when he talked about those payments to stormy daniels. it's not clear what facts the president's referring to, though, what giuliani said that
1:12 pm
was inaccurate and the president, despite having three opportunities to respond to reportsers not saying what the accurate facts, in fact, are. we'll hear from the president at the nra event this afternoon. the nra is afavorable politica turf for the president. we'll see if he talks to reporters again. he seems anxious to suggest that there was something wrong with what giuliani said and he's pointing to an expected statement from rudy giuliani correcting, apparently, whatever it was that he said inaccurately earlier in the week. so we'll wait for all that. >> he made a comment about the trade delegation that's over in china. nothing really conclusive but he did say, again, he respects xi and that he's going to treat them nicely on trade. did you get anything in terms of policy out of that >> reporter: i didn't. he said that the delegation is on its way back which we know. the question is, you know, if they presented this list of demands to the chinese side, how was that received? is there anything at this point that the chinese can do to get out of tariffs one of the big complaints on the u.s. side is that the chinese have been stealing u.s.
1:13 pm
intellectual property for years and years which is well established factual -- there's a well established facts around that. how could the chinese promise not to continue stealing the ip in a way that's believable because if you're stealing ip you often say you're not. the question is how could the chinese get out of this tariff situation in any case during the course of this negotiation what could they possibly promise to prove the negative there and that's still unknown. >> we know the trump administration wants close that trade deficit as well. jackie >> reporter: added nine rigs this week taking the total up to 834, it's up 131 compared to a year ago. that number is shrinking. that's the fifth straight week of additions here. it's normal to expect rigs to come online but the danger, of course, is that the u.s. could overdrill. you can see prices are higher despite this fact, though, not lower with the critical session high of 69.97, another run for
1:14 pm
70 here that's because the market believes that the gill yet has lessoned. guys >> thank you very much. markets are moving higher at this hour. apple the biggest driver. warren buffett has been buying the stock and buying it big. we'll tell you what else buffett is buying enwh we go to omaha live next on "power lunch." - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall.
1:15 pm
- learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
1:16 pm
mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome.
1:17 pm
breaking news on trade. let's get to kt in bedford heights, ohio. hi, kayla. >> reporter: the white house putting out a statement recapping the delegation of u.s. trade officials and trade talks in beijing. the statement references frank discussions between the two sides, those discussions it says were held at the invinitation of china's top economic official. it says that now the delegation will return to washington, d.c., brief the president and seek his decision on next steps but it says that the delegation reinforce that had fair trade will ensure economic growth in the u.s. and that there is consensus among the administration officials about the need to hold china to account on fair trade. guys, back to you.
1:18 pm
>> thank you very much. frank discussions and diplomatic speak means that it actually wasn't very polite and was pretty tough. thanks kayla. for one weekend every year omaha, nebraska, becomes the focus of the business world. warren if you have bet's berkshire hathaway, and already we know that buffett bought stock in apple. becky quick as always live in omaha with more. hi, becky. >> reporter: it's great to see all of you. as you mentioned we found out that warren buffett bought a huge stake in apple, a huge additional step in the first quarter to the tune of 75 million shares. that added up with the shares that they already own means berkshire owns 240 million share in apple. that was pushing the stock to new highs today. we caught up with buffett last night and asked him what he thought about apple's most recent quarter when they reported on tuesday night.
1:19 pm
here's what he had to say. >> i like what i saw, too. they -- their surprises -- it is unbelievable company. if you look at apple, i think it earns almost twice as much as the second most profitable company in the united states. it's a wide, wide gap. it's an amazing business. here's a company that whatever the earnings are 60 billion or whatever and you can put all their products on a dining room table. >> reporter: now, michelle you've been here to berkshire before. things are just kicking off right now. they just opened the floor here on the conference floor. so they are shopping at all of the big brands that are here for berkshire hathaway. we are standing at the craft hients booth. take a look. giant pickle overhead. the weiner mobile is right
1:20 pm
behind me. craft catch-up is here. kraft heinz is not a company we get to talk to very often. the ceo is somebody who's quiet but we did get the chance to talk to them this morning on "squawk box." there are a lot of people on wall street looking at the company and saying, this company needs to continue to make big acquisitions in order to really show growth. well, bernard says that that's not the case. the company since 3g and berkshire took over they have a majority stake in this company kraft heinz. berkshire owns 26% of the company. they have seen organic growth of 5% in the five years since they took over. that organic growth will continue but when it comes to m and a is is it interested in the small acquisitions where they would be bolt on or more interested in the large acquisitions this morning he told us both. >> we continue to like big brands and we continue to like
1:21 pm
businesses that can travel and businesses that have synergies, that you can extract to invest behind growth. we look at all the opportunities internally in the united states and globally, for us it's more important to find us that two plus two is more than four. we're here for the long run and disciplined on price. with all this in minding and treating the business as hours in perpetuity. give us the right mindset when the right opportunity comes along. >> reporter: as you know this is not the typical shareholders meeting. got mr. peanut who we just saw. you got toe mat tow and ketchup from heinz here. and everyone's favorite. hey, kool-aid. he can't say anything other than oh, yeah let's try and get this out. mr. kool-aid, are you having a good time here today >> oh, yeah! >> reporter: all right. thank you. great to see you. any way, guys, this is just
1:22 pm
getting started. this is just about the first ten minutes that the shareholders have been allowed on the floor. we'll get you caught up with what's happening and we may even do shopping ourselves. >> quick question about apple. berkshire has more than $100 billion in cash and warren has basically acknowledged that he's not there to just hoard cash. he could be doing a big, you know, acquisition sometime in the near future. apple has twice as much cash, so what does he say folks should do with that money? >> reporter: he did not say, but melissa that's not the last time we'll get to talk to him this week. at the end of the year, berkshire had $116 billion in cash on hand. i asked him if that had grown or shrunk since then. he says it shrunk in large part because he spent 12 to $13 billion just on apple stock in the first quarter. you think berkshire hathaway is putting its money into buying apple shares, apple is putting
1:23 pm
its money in to buying back apple shares. berkshire hathaway might grow even more quickly. it's a great question and we'll make sure we ask him. he's live on "squawk box" monday morning. >> we can't wait. three hours. thanks becky. there's more buffett than that on monday. warren buffett, investor, teacher, icon. airs tonight at 10 eastern time and stay tune because we got a preview coming up in the next hour of "power." bitcoin up 5% this week but still down 25% this year. critics say it can never be a currency when it's that volatile but what if there was a stable currency plus u president trump arriving in dallas at this hour to speak to the nra. we'll take you the lreive when "power lunch" comes back.
1:24 pm
1:25 pm
1:26 pm
look at bitcoin because bitcoin prices are inching up to that 10,000 level once again down slightly today is cryptocurrency. bitcoin and others are very volatile as you all know. bitcoin has lost 46% of its value. what if there were a cryptocurrency that did not wildly fluctuate in value, one that was based on an algorithm that kept the currency consistently at a dollar.
1:27 pm
joining us now is basis cofounder and naji had you hadar thanks for joining us. >> great to be here. >> how does that work? it sounds almost as -- somebody out there might think is it pegged to the dollar then? >> it's a great question. if you look at bitcoin it actually has a fixed supply and that fixed supply what it means if demand goes up the price has to go up. it's lining the law of supply and demand. with basis what we do instead of it being a fixed supply, it will grow and fix the basis to keep it at a dollar. >> so what is the incentive for people to mine these coins if the value of the coin itself remains as a dollar and is there underlying protocol for platform that your marketing -- like stellar or ripple, they're
1:28 pm
trying to revolutionize the financial services industry with their platforms and therefore imparting value on their cryptocurrencies. is that the same approach for basis? >> not quite. what we're trying to do is we're trying to unlock mainstream applications for cryptocurrency by bringing that stability and giving you things you can do that you can't do when there's a lot of volatility. just as an example, think about a salary and trying to do a salary with something that's volatile at bitcoin. imagine one bitcoin per month as a salary. if the price goes down, you're going to miss rent because that bitcoin isn't worth very much, but if it goes up your employer is upset because feels like he's paying you too much. with basis what we're trying to do is make cryptocurrency useful where we think it's not useful right now for the most basis financial contracts in our economy like salaries and loans. >> one of the criticism of bitcoin is a currency tends to
1:29 pm
have a stable store value. it doesn't shock me to see somebody like backers, these are two gentlemen who have been very critical of fed policy over the last decade or so with quantitative easing, how does that viewpoint come together with your crypto coin? >> you think a lot of people have been critical of the volatility, even warren buffett who you were showing earlier. what we're trying to do is take the learnings of traditional monetary policy which has worked very well for the last 100 years or so and bring them into the crypto space. so we bring all the benefits of cryptocurrency, but with the traditional learnings built in to really take bitcoin from being gold -- >> you need a lot of electricity to mine this thing >> we're launching without mining. the distribution is the way you buy a basis is you go to an exchange and buy it.
1:30 pm
>> what is the advantage over the dollar then? >> what you find is around here we have access to the dollar, it's a very stable currency but all around the world a lot of people, especially in developing countries, the most stable currency they have access to is often devaluing at a rate of 5% -- >> you're targeting mostly emerging markets, companies that don't have stable currencies, not so much the u.s. we won't be using it at starbucks. >> right. that's really where we're looking. >> thank you so much for your time. >> thank you so much. tyler? 164,000 jobs added and the unemployment rate down below 4% for the first time in as long as i can remember. does that mean the economy is exactly where the fed wants it steve liesman live with the next president of the international
1:31 pm
conference. i'm with john williams. you're going to go across the country and be the president of the new york fed. the question people have is are you crazy? why would you trade this for that i'm a new yorker so i can say that. >> i love it here. obviously it's beautiful, wonderful institution and i am going to miss the west coast. but i'm really excited about coming to new york and obviously it's a really important role and i'm excited about joining the new york fed. >> let's talk about some of the contemporary econissues. the jobs missing expectations, 164, but the you don't know employment rate falling, wages are weak, what's happening in the jobs market right now? >> i don't get too caught up in every month report. i do see it as pretty consistent. if you look at the jobs growth been very solid over the last three or four months. wage growth is still i think on an upward trend. it's not picking up fast. overall, it's a positive report
1:32 pm
in the sense that the u.s. economy is still on a good growth trajectory, labor market is strong and getting stronger. >> is the economy running too hot? >> the wage growth numbers have been rising but are still pretty moderate and inflation date are similar to that. they've been picking up moving closer to 2% trend. i don't see any rapid increase in inflation coming. this is a pretty much goldilocks economy. very strong labor market, inflation moving in on trend and i see this as all pretty positive. >> give us a john williams bench mark, what number of payroll growth is a strong report? >> if -- let me back that up a little bit and think about what's a sustainable growth in terms of labor force growth. economists would put that around 80 to 120,000 jobs a month is the right number to, on average, to match the number of people entering the labor force. we've been seeing, you know, over -- >> more than that. >> closer to 200,000 offer the
1:33 pm
last several months. we're still well above that and that's one of the reasons the unemployment rate continues to trend downward. >> we do our cnbc fed survey before every meeting and we ask people what's the terminal rate for the fed reserve. it was as low as 2.6% and when i say terminal rate, i'm talking about where the fed will stop this cycle, essentially. you would see it as the long run potential rate or rate for the funds rate. it's now at 3.25. can you give us an idea of how that's changing and what the number is in your mind >> i do want to separate out this long run concept from what may be is the path for funds rate over the next few years. my view on the long run if you were to ask me five or ten years from now, what do i think is neutral? a person that's about 2.5%, 2% inflation, half percent real return on the interest rate. we look at the median of my colleagues projection for march,
1:34 pm
that's a higher than that or little below 3%. now i do think when you ask me, where is the fed funds rate likely to go over the next few years, you have to think about this in the context of the economic outlook. i see the unemployment rate gained out on 3.5%. i see us modestly overshooting our inflation target. there may be a times -- where the fed funds rate is slightly above this long run mutual rate. i think you do have to separate the long run from maybe where we are two years from now. >> you talked about overshooting. the word symmetrical was in the statement twice this month. was that a signal to people to, hey, the fed is going to not really be all that much concerned if we overshoot inflation on the upside? >> as you know, from the beginning, we've seen our inflation target as being a see metric one where we want inflation around 2%, sometimes above or below, given that inflation's been below target for a number of years, it is important to reinforce that
1:35 pm
message that we think of this as the 2% as the midpoint of where we expects inflation to be and i am personally comfortable with the fact that inflation may over shoot that 2% for a while, but looking to get this average 2%. i think the words symmetric is a signal to say, that inflation should sometimes will be sometimes above, sometimes below but on average at 2%. >> john, a lot of the debate right now in the market is over the number of rate hikes this year. it looks like the market is pretty well priced in tune and they're debating a third one from here. what's the right way to think about it >> i think the right way to think about it is in terms of data dependency. inflation numbers really getting pretty close to our 2% goal. you think the right thing to -- the way i think about is we'll continue this gradual process. if you go back to march, the
1:36 pm
central tendency of the committee was for three or four rate increases in the year. we've had one. i still think that's the right way to think about it giving the continued improvement in the economy. >> john, i'm going to have to ask you about the new york fed job in new york because right now i'm getting a wrap that i have to wrap it up now. thank you for joining us. >> thank you. back to you guys in new jersey. >> thank you very much, we're looking forward to the next one in the next hour of "power lunch." dallas fed president robert kaplan will be joining our steve liesman. what i heard was, steve asked him does a three handle on the unemployment rate and we got that today for the first time since 2000 make you nervous about this economy running too hot and he said no. so everybody saying, you know, the feds getting a little more aggressive, worried about inflation, john williams, who is set to become the new york fed president which is the most important regional fed president since it's goldilocks, good growth, not too much inflation,
1:37 pm
not too hot and not too cold. >> very chill. i could understand him. he spoke plainly. >> which is weird. >> he's been a fed person his whole life. >> yeah. he was quite chill on the economy and inflation and all of that. so don't get too worried about that. now maybe betting on the kentucky derby is not your thing but betting on the company behind the kentucky derby has paid off hansomely. churchill stock up 120% over the past three years. the company's ceo is about to join us. lots more "power lunch" ahead on this eve of the kentucky derby.
1:38 pm
1:39 pm
1:40 pm
hello, everyone. i'm sue herera. here's your update. before boarding air force one this morning, president trump and white house chief-of-staff john kelly talked to reporters about their relationship which they said was great. >> i want to just tell you something, general kelly is doing a fantastic job. there has been such false reporting about our relationship. we have a great relationship. he's doing a great job as chief-of-staff. i could not be more happy.
1:41 pm
>> north korea airing video of leader kim jong-un meeting china's foreign minister. china's foreign ministry says the north korean leader is committed to the denuclearization on the peninsula. new revelations about prince harry and meghan markle's wedding. her father will walk her down the aisle and her divorced parents will arrive in london before the wedding to meet the king and the queen and the queen and other royals. markle will not have a maid of honor and all the bridesmaids and page boys will be children. can't wait. that's the news update this hour. back to you. >> thank you. i want to check in on markets right now because we are seeing strength across the board. the dow is up almost 300 points, 289, we got 1% plus gains across all three major averages with the nasdaq up the most. a big part of the story is apple leading the dow and nasdaq. mcdonald's, dupont siscal.
1:42 pm
now let's get a check on the bond market. hi, rick. >> i'll tell you a fascinating day. we're getting back to a flattening mode after a really questionable report on employment. went from 245 back up to 250 -- up two on the day, up two on the week. looking at days of ten. we trade all the way down to 291. having settled below that since last week's wednesday 303 high yield close for 2018. right now it's unchanged on the day virtually unchanged on the week as you see on the ten-year term for one week. let's go to fed fund future for december. every contract rolls into the next. it's at 9681. that's the low of this cycle. the lower it goes the higher the probabilities which means that we haven't really changed anybody's opinion on the short end or the long end.
1:43 pm
it looked like it was nervous about growth and it snapped right back and finally one week of the dollar index. yes, it's been up to 92.90 today but here it sits at a whole penny. we are just a day away from the 144th running of the kentucky derby, the company that owns the derby, churchill downs as well as the iconic racetrack up 64% in the past year, 246% in the past five years and in addition to its namesake track there in louisville, churchill downs race tracks and casino and online betting sites. we're joined by churchill downs ceo. i'm sure you're excited about a very good day tomorrow. what's the weather tomorrow? >> that's the one thing we don't control about the event but so far they say it looks pretty
1:44 pm
good. today's a great day if that's any indication of tomorrow. today look good. >> i think the popular view is that the racing business has been in a rather long-term secular decline. correct me if i'm wrong about that, the way companies like yours and others have adapted is to enter new and different lines of businesses like casinos and online gambling and so forth. how have you been able to do that and do it so profitably such that your stock is up more than 200% over the past five years? >> we were pretty careful about understanding what our opportunities were and how we could make money. certainly an event like the kentucky derby is a wonderful financial thing as well as a cultural thing so that's always been very healthy and it continues today to be growing and healthier every single year. when it comes to day-to-day racing, that's not the greatest business in the world but it was
1:45 pm
our entry into casino gaming through our licenses for race tracks and also it led to us entering into the online space which has been a wonderful growth engine for our company. it starts with understanding our options and opportunities and being focused on them. >> let's talk about how important a couple of court decisions may be to your industry and to your companies' future and how important online gambling may be to your company's future. the supreme court may decide in a matter of weeks what to do with respect to nationalized sports betting. if that decision comes down in favor of that, what kind of boost is it likely to give your company? and then second, how important is it online gambling going to be and are you hopeful that national online gambling within, say, a decade will be a reality no matter where you live >> i think a predicate for it is
1:46 pm
online wagering on horse racing which has been legal and that's a tremendous thing for the horse industry and a tremendous thing for our company. certainly, it's our hope that states consider online wagering all different forms of online wagering including slot machine wagering and the case you reference is a case before the supreme court with respect to sports wagering, which is another category of wagering, which we're very bullish on. we think that would be a great thing. we think our customers would like it and certainly we're prepared if that is something that liberalizes and then gives different states the opportunity to implement their own laws for implementing the product. so for us we like the businesses we're in currently but certainly the growth of digital and the growth of new products in the digital space is a huge opportunity for us potentially. >> growth and digital if that were to happen, would that
1:47 pm
cannal ballize the physical casinos and the physical places people go. we already talked about if there's too much supply in some markets as more and more states legalize gambling? >> really good question. i'd say let's use horse racing as a proxy. certainly there can be sometime cannal balization but the market itself is grown with the ability of people to access a product easier. from our perspective as an owner of entire casinos but we have partnerships where we own others, we have nine casinos, for us i don't worry about the cannal bal scenario at all. it makes up for pockets of cannalibazation. >> i have to ask this, you have
1:48 pm
a horse tomorrow that you like >> you would never jinx a horse like that by picking them. that would just be bad news and i would never hear the end of it. i would say that someone's paid attention to horse racing for many years, this is the strongest race i've seen in a good 15 years. there are some incredible horses this year. so it's a wide open race in my opinion. >> there is nothing more beautiful than seeing a horse on the run, i'll tell you. thank you very much, bill. >> my pleasure, thanks for having me. >> he loves all of his children the same. >> that's right. i had to ask. you know you can't go there. tune in tomorrow for the 144th running of the derby. it begins on nbc starting at 2:30 p.m. eastern time and i'm old enough to remember when the kentucky derby was still in single digits, folks.
1:49 pm
>> all right. we should root for "the new yorker" in the kentucky derby. >> oh, wow. president trump getting ready to speak any moment now at the nra annual meeting. our brian sullivan is at that big gathering. brian? >> reporter: i'm not a bigwig. or a c-anything-o. but i've got an idea sir. get domo. it'll connect us to everything that's going on in the company. get it for jean who's always cold. for the sales team, it and the warehouse crew. give us the data we need. in one place, anywhere we need it. help us do our jobs better. with domo we can run this place together. well that's that's your job i guess. ♪ - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall.
1:50 pm
- learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. people don't invest in stocks and bonds.
1:51 pm
they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. president trump set to speak shortly at the nra annual meeting. brian sullivan is live in dallas at the event hey, bri >> reporter: hey, mel. thank you very much. there is a huge amount of enthusiasm as you might imagine here for the president in fact, the line -- we're going to try to show you video of the
1:52 pm
line we walked the entire line from the back to the front waiting to get in to where the president is speaking literally it was the longest line i've ever seen. took about ten minutes to walk it so we sped up the video here. lot of enthusiasm but there's something very interesting that's happening in the gun business as you can see, companies like ruger, rgr, publicly traded company, american outdoor brands formerly known as smith and wesson, they're a little bit frustrated not with the president necessarily but with sales. in fact, a number of the 800 or so vendors i've spoken to off camera are a little bit concerned about what one of them called the trump slump in fact, they used to be a 60-person company, had to go down to about 43 because gun sales are actually down from their 2012 high. so, they're above where they were five or six years ago but off their high from 2012 so, it's kind of interesting, guys there's a huge amount of enthusiasm for the president he's got a raucous crowd, lot of are red hats if you know what i mean, but at the same time, the stocks of these companies like ruger are below where they were
1:53 pm
when the president was elected some of the concerns about the industry making all the parts for guns like this, a lot of them are american made, guys, in places like new hampshire. not just here in texas the president speaking here momentarily. and one other thing to note. there was expected to be protests outside haven't seen any, in part, guys, because of the weather if you were not -- if you were against protests, guess what, you got the weather you hoped for. it's pouring rain here in dallas our security consultant said, yeah, it's probably keeping people away. >> brian, the reason that we saw that peak in sales was because of worries that you weren't going to be able to buy guns, right? they didn't think president trump was going to win, and so the reason sales are down is they're not so worried about gun control laws anymore prohibiting them from buying them in the future >> reporter: yeah, michelle, actually, one of the vendors that i was speaking with, again, and the nra is nice enough to let us walk around, most of these people don't want to go on camera they said to me that, quote, president obama was our best
1:54 pm
salesman and that when president obama was in office and there were bills being put forth, gun sales soared they said gun sales have come down plus of course the backlash from vanguard and blackrock >> even with vegas and parkland, so many terrible shootings in this country >> reporter: yeah, there have been there's three of the four -- thanks, guys all right. >> sorry we got to go still waiting forpresident trump as we talked about we're going to take you there live as soon as it happens don't move 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, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.
1:55 pm
show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. never owned a business.e term "small business," there's nothing small about it. are your hours small? what about your reputation, is that small? when you own your own thing, it's huge. your partnerships, even bigger. with dell small business technology advisors you'll get the one-on-one partnership you need to grow your business. because the only one who decides how big your business can be, is you. the dell vostro 15 laptop, with 7th gen intel® core™ processors.
1:56 pm
mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement.
1:57 pm
and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. vice president mike pence lleaking at the pnra event in daas the second hour of "power lunch" begins right after this.
1:58 pm
1:59 pm
2:00 pm
welcome to the second hour of "power lunch," everybody. we begin with breaking news. president trump set to speak very shortly at the nra annual meeting. let's get to amon jafrz in washington as vice president pence speaks to that same group. >> reporter: tyler, you saw our brian sullivan walking that line in dallas there outside the nra event, the long line of people gathered to get in to hear the president speak today. the president has also been briefed on that line on air force one, telling reporters there's a really long line outside the event, touting the record crowd that's going to be here to listen to his remarks and this is an organization, among whose members donald trump is extraordinarily popular and
2:01 pm
this is an event taking place in a state where donald trump is very, very popular, so this should be about as pro-trump a crowd as you could gather in one place at one time and it will be fascinating to see just how the president handles that dynamic, because you remember earlier in the year, there was this moment at the white house in a debate about gun control and gun regulations going forward in which the president said that politicians on capitol hill are simply terrified of the nra. he said, you people need the nra. i don't need the nra because i'm an independent politician who's not beholden to them so fascinating to watch and see how that has changed the president on air force one on the way over to dallas, tyler, said this is a great organization that truly cares about america. >> he may not be beholden to them but am i incorrect in remembering that he did receive a fair amount of campaign contributions or that the campaign did from the nra? >> reporter: well, sure, and republicans across the board have received a lot of support from the nra as well as many democrats. that is something that the
2:02 pm
president said he didn't really need, though, because of his independent wealth he said he doesn't need campaign contributions. he's not as beholden to any particular interest group. that was the point he was making earlier in the year at a time in which he was talking about the idea of taking guns away from the mentally ill remember that famous comment from the president earlier this year when he said, i would just go in, take the guns away now and have due process later that comment got a lot of attention because, of course, nra members generally don't favor taking guns away from anybody, and they do favor due process in any kind of proceeding that involves taking guns away from people. >> giuliani's got a statement out. >> i see it here >> my references to the timing were not describing my understanding of the president's knowledge but instead my understanding of these matters does that clear up anything? >> reporter: giuliani here is saying this is intended to clarify the views i expressed over the past few days first, he says there's no campaign violation that's the same as he has been saying throughout the course of the week he says the payment was made to resolve is a personal and false
2:03 pm
allegation in order to protect the president's family it would have been done in any event whether he was a candidate or not that seems to clarify the comment that rudy giuliani made on fox news when he said, could you imagine if this had come out during the last days of the presidential campaign, how disastrous that would be rudy giuliani seeming, in this comment, to suggest that the payment to stormy daniels was made at least in part because of the looming presidential election second here, giuliani saying in this statement, as you say, my references to timing were not describing my understanding of the president's knowledge but instead my understanding of these matters. so, giuliani is not suggesting he's now suggesting that he knew what the president knew and when he knew it you remember that all of this -- >> i don't, actually, but keep going. >> reporter: i'm working through it with you on live tv here, but you remember that rudy giuliani had suggested that president trump paid for the stormy daniels payments in 2017 and maybe partly in early 2018, even
2:04 pm
though he didn't know what those payments were for until just within the past ten days or so >> okay. >> reporter: so, that was something that a lot of people just simply didn't believe and now giuliani is saying that he's not describing at all what the president knew, so he's sort of withdrawing the idea that the president knew about these payments and he also said that it's indus puted that the president's dismissal of director comey was clearly within his article 2 power so that is in reference to a story that giuliani made in which he suggested that the president fired james comey, the former fbi director, because comey wouldn't tell the president that he wasn't a target of the investigation. that's what giuliani said this week now he's saying that's not true or at least that's inoperative so clean-up on aisle 3 by rudy giuliani >> well, i guess, you know, mr. giuliani is new to his job, and he's getting his facts straight >> but not to being a lawyer >> no, not to being a lawyer i can't remember the name of the russian dolls where there's one
2:05 pm
embedded in another in another i can't remember the name of them but this tale feels a little like that to me. >> reporter: now that we have this statement that's clearing everything up, we don't have any idea now when the president knew about the stormy daniels peyton mannings -- payments or whether he knew about that at the time that he denied knowing anything about it on air force one back in the beginning of april. a remember, he was famously asked about it and said, did you know anything about this and he said no so either that was a lie at that time or he somehow discovered that he had paid for stormy daniels after that and before giuliani made that statement this week. >> and if i'm remembering correctly or you help me here a little bit, the reimbursement, such as it was, was structured as a $35,000 a month retainer? is that -- am i right on that? i mean, in other words, the president did not write a personal check for $130,000 to mr. cohen, the attorney, but rather entered into a retainer agreement sometime after he
2:06 pm
became president at $35,000 a month, which effectively reimbursed him. >> reporter: it would appear that what the -- what they did here was pay this off on the installment plan and there's a couple of reasons why you might want to do that. one is they're going to -- the law enforcement is going to look at the paperwork surrounding this, did they have paperwork that suggested that this was for another purpose altogether the other one is, if you want to make sure that michael cohen stays on your side, you might want to dole out the money over time to him to make sure that he is dependent on a stream of income from you, even though you're a billionaire as the president of the united states, who could write that check all at once, you might want to write it out month by month to make sure michael cohen has ongoing incentive to stay with you here, so to speak. now it appears the two men do have some daylight between them and that could be a real danger to the president because it's unclear what michael cohen knows about all this, but he clearly knows when he got paid and who paid him and what the president knew about it. >> so we'll be watching. thank you, amon. in the meantime, as we continue to wait for the president at the
2:07 pm
nra convention, let's get you a check on the markets big rally on wall street right now dow is up 355 points all ten s&p 500 sectors are higher, tech and materials are leading the gains. and within technology, there we go, all major averages, all higher by more than 1% and that would explain why -- let me show you apple is one of the reasons why the nasdaq is doing so well. activision and qualcomm are there. earnings moves there cbs reporting a beat shake shack having its best day since 2015 and pandora on pace for its best day since 2013. so for more on the markets, let's bring in lindsey bell, investment strategist and chris burleson, president and chief
2:08 pm
investment officer thanks for joining us. lindsey, you always have a good feel for earnings season just recap for us, because what we've heard is, what, 20 to 25 profit growth and better sales numbers as well. >> exactly this has been an outstanding quarter. q1, we're seeing earnings growth around the 23% mark and 77% of companies are beating on their bottom line estimates. 74% are beating on the top line estimates. this has been a blowout quarter in all measures and guidance has been very good we've seen companies guiding up, not guiding down we've seen 2018 earnings growth increase to over 20% usually we see numbers come down at this point in the earnings season, so overall, it's been great. but the market hasn't reacted much >> not much, but chris, you know, michelle just pointed out some movers, and some stocks are getting nicely rewarded for good earnings, activision, shake
2:09 pm
shack. what have you taken away from how the markets are responding to earnings and sort of how high the bar is right now to beat in >> well, it's no question that the market is trying to discount good earnings in relationship to the inflation numbers and north korea and all of the various wall of worry that it's trying to climb and people hating the volatility they're seeing in the market certainly individual investors, and i think the big surprise out of this is that even though today is a nice day, that people are going to go to a crossover to fixed income and everybody's like, that's not going to happen we all know what's going to happen to bonds over the next 18 months because the fed's going to raise 2 or 3 times more this year and a couple of times in 2019 or more but yet, people would much rather feel the low volatility that they would get in a fixed income portfolio as opposed to the earnings side.
2:10 pm
so, i agree, totally, earnings look very good, and we own some of the stock you mentioned and brings smiles to the face. >> what's wrong with the market, then you both acknowledge it's been really, really good but we got nothing. today's good but it's been pretty lackluster. this was supposed to be the thing that helped the markets, lindsey. >> yeah, you know what i think, the problem here is investors are really trying to decide what is going to derail this bull market it's the second longest bull market of all time, it's getting lo long in the tooth. earnings growth is getting better but there are these broader issues weighing over the market in my opinion, kind of creating a bit of a ceiling, a lot of them political related i'm actually impressed that the market is reacting so well today after the meetings with china on trade and the little news that we got out of that you also have geopolitical concerns, which have calmed down for a little bit, but you're starting to see the russia questions come back to probe people are throwing the word impeachment around, so there are still a lot of concerns, and
2:11 pm
there's a lot of anxiety still in the market. >> on top of those -- >> maybe this is a turning point. >> on top of those concerns, though, chris, is it another force within this whole thing, the fact that the two-year yield is at 2.5% you're talking about the safety of bonds the safety of cash is now really viable option here for investors. forget about bonds i don't have to risk the principal at all and collect something pretty decent in my savings account. >> absolutely. and that's actually part of my point, why we get a crossover. i mean, all of a sudden, cds have gone from less than 1% to 2.3% or 2.4% and suddenly that's competition for stocks people don't really like to see the volatility that we've seen over the last six, eight weeks or so far this year, to be frank with you and certainly there's a lot of talk on the political side, maybe this will be a change in the house at the end of the year, and you know, people hate that discomfort factor >> you know, i just wanted to say one thing about the fed, lindsey, and that is, going into this week, i think there was a big question mark as to just how
2:12 pm
aggressive the fed was going to be, finally starting to hit the inflation target are they going to tighten even more than the market is predicting and this week, we got some answers on that. the fed meeting came out they didn't seem particularly worried about inflation. we just heard from the future new york fed president on that point. so doesn't that matter to the markets and the trajectory going forward? >> yeah, i mean, it was good news this week and we also saw, too, today in the jobs report, which you guys have been covering extensively that wage growth was only 2.6%, a little bit weaker than expected and i think that really helped the bears' point of view that inflation was going to get out of control and we were going -- growth was going to take off in which case the fed would have to come in and act this week, we got confirmation that, you know what, inflation is under control, and even if it goes above that 2% mark, the target mark, the fed isn't going to overreact and start moving rates up unnecessarily
2:13 pm
>> i felt that was a big takeaway from the week as well lindsey, thank you so much and chris, thank you good to see you. >> thank you and just a reminder, we are waiting for president trump to address the nra. we will bring it to you live as soon as it begins. still vice president pence is speaking in the meantime, let's get to the other big market story. apple shares are hitting an all-time high today after investing legend warren buffet told cnbc he bought an additional 75 million shares in the first quarter. this adds to the 165 million shares that berkshire already o owned at the end of last year. let's bring in a long-time buffet watcher hi, john, good to have you here. >> great to be back at berkshire. >> yes so i see that in your two funds, you don't have apple in the top ten holdings do you own any apple and what do you think warren buffet's big bet on apple >> well, i think, you know, i have specialized, you know, for 35 years in small and mid size
2:14 pm
companies so apple is much, much too large to be in my circle of competence but i have total confidence that warren knows what he's doing and he's very, very, if ever, wrong and for him to make a big bet like this, you know that he sees something great for apple's long-time future >> what do you think he sees >> i think he sees that it's a business that has a true mode around it. it's very hard for people to compete with apple right now it's got great recurring revenue and it's very, very cheap. you know, it's when you really back out of the cash, it's only 14 times next year's earnings so even after the extraordinary run over this last decade, it is still a cheap stock. >> you know, it's been cheap for a long time. it's really amazing. the market has never really given apple a big fat multiple even as we've seen it grow, when you compare it to other silicon valley names, i think ten years, i've heard people say, apple, it's cheap why do you think that the market just doesn't give it a bigger
2:15 pm
benefit of the doubt >> i think that in the beginning, people -- it's just not as sexy an idea as some of the other hot new companies. apple's been around for a long time it's such a well established brand and company, so i think a lot of people just weren't willing to pay up for it and also, they became so dependent on the success of the iphone, people felt that that was kind of maybe a one trick pony and didn't understand how powerful an economic engine that phone really is and how much it's changed and transformed our society around the world >> you're at the meeting, john, so obviously you admire mr. buffet's investing style you know, part of the push the further into apple is to spend his cash hoard, buffet's cash hoard of about $116 billion. ironically, though, apple has a cash hoard that's twice as much. do you think that he could be an agent for change here? i mean, why -- if you're in a position of feeling like you should be a good steward of
2:16 pm
capital by deploying it at berkshire hathaway, you then invest in a company with a gigantic cash hoard that's just sitting there. >> well, they both have a lot of cash, as you suggest and you know, i think over time, apple will be using that capital in a very effective way, to buy back stock, you know, pay larger dividends. it will be in a great, great position to really benefit shareholders and they have a smart management team and then having buffet as a partner, you know over time, even though he's not an activist shareholder, he often is giving great advice to ceos about their capital allocation decisions and so i think he'll help them to use that cash effectively and at the same time, he'll be prudent with his own cash as he always is, waiting for those really transformative ideas that can bring value for berkshire over the long run >> john, tyler here. you know, i think of your family of fund as among the first to pursue socially responsible investing objective and there
2:17 pm
have been plenty of issues in the news over the past 12 months that bear on social responsibility and on investments in companies that may have been plagued either by sexual harassment claims, may be involved in businesses such as the manufacture, sale, distribution of opiate drugs, and other sensitive topics how has your portfolio changed, if at all, and as a result of that, and how has social responsibility -- socially responsible investing evolved over the past 12 or 15 months? >> well, i think socially responsible investing is really been transformed it's more and more about esg and we think that that's an important thing. it's a major distinction, getting to be more and more disciplined around the whole esg endeavor >> what does esg stand for, for those who don't know
2:18 pm
>> you know, it's an environment, sustainability, and governance and we think that it's just so critical for them to be able to talk about investing in ideas that if you get this right, you're going to be able to add value for shareholders if you have, for example, a diverse workforce and a diverse board of directors that treats their employees with respect, you're not going to get the kind of lawsuit that brought so much damage to the uber brand, to what happened to the weinstein companies. if you're doing things the right way, you're going to be able to really enhance shareholder valu in the 21st century. more and more millennials want to see companies that care about the broader society and are not just think about the short-term profits but realize that long-term profits come from conducting yourself in a respectful and appropriate way >> all right, john, thank you. always good to hear from you john rogers. the unemployment rate hitting new lows but a new report from the national urban league finds that african-americans and hispanics are still struggling to find
2:19 pm
work or economic prosperity. let's hear from the national urban league ceo, mark, welcome, good to have you back as always. >> good to be with you good afternoon >> your opposite counterpart is not with you today we'll have him back next time. we'll talk a little jobs first and then get to the survey the jobs numbers today were, by any stretch, it seems to me, pretty good, except for the fact that maybe incomes didn't rise as robustly as some would have liked. on the other hand, runaway income growth can suggest runaway inflation. your reaction. >> this long, continuous streak of job creation continues, albeit the numbers are down from what they had been, and the labor market is indeed tightening and i think we ought to focus now where unemployment is low and it's come down to historic levels. one of the big challenges for the economy, the labor force participation rate is still lower than it has historically
2:20 pm
been, which means there are people still parked on the sidelines who want to get into the labor force and for some reason may not have the skills, may not have the geographic match to get the job that they are qualified to do. i think you also put your finger on wages we heard a lot that the new tax bill would, in fact, have a positive effect on wages it has had a positive effect on earnings, as we've seen for the last announcements on earnings, but it still has yet to be felt on what i call main street america. the average worker and whether their wages are going to increase. goldilocks report, not too hot, not too cold but we need to be thinking about how we can address these systemic problems in the economy, get people working and also try to match up -- business people tell me they have openings. people in the community say, well, i may not be prepared for
2:21 pm
those openings but i don't see those openings that's the work that has to be done >> there really is a reskilling and an underskilling issue in our labor force. i always, when i look at the labor force participation, i see it, i see what you see, it isn't where it was and some of those people certainly do want jobs, but are discouraged and out of the workforce, but others, i think, are out by choice, either because they want to retire or they're ready to hang it up. >> well, we have an -- >> probably demographic. >> absolutely. but also we have the advent of people's ability to be self-employed. the ubers and lyfts that we talk about are just two examples where people can work not in a traditional employer-employee situation but in effect they're self-employed, in the gig economy, independent contractors. but here's the other thing we ought to make sure we make a point about and that is those who are working in part-time positions who'd like to work in
2:22 pm
full-time positions. and many times, that's a skills issue. sometimes it relates to other issues, but for this economy to get to really where we need it to be, we need to not just be celebratory on where we are. we need to really focus on wages, labor force participation, reskilling, the things that really, really can bring us to the kind of economy we need in this nation >> mark, and equality as well, you know president trump likes to talk about the black unemployment rate going down under his watch, and we should report that in today's numbers, 6.6% is a record low for african-american unemployment but it's still almost double the national average why is that? what sort of policies can close the gap? >> well, you know, there's still implicit and explicit bias in the labor market we should not fail to mention that i think that's an important case i also think that the gap around skills continues and remains to be an issue.
2:23 pm
we need, i think, at this point in time, the most significant investment in reskilling our workforce than ever before what our state of black america report shows with the changing landscape due to the digital and the technology economy, jobs are going to disappear certain types of jobs are going to disappear, but new jobs are going to emerge. we've got to make sure there's increasingly diverse workforce of tomorrow is prepared for the jobs that are going to emerge from this transformation we're seeing it touching eevery aspect of our lives, every aspect of our work, every way in which we even play >> i can see where you are in louisville and i'm going to get to that obvious question in a moment -- >> he's going. i bet he's going >> i want to see the hat he wears. that's what i want to see or your lovely wife wears if she happens to be lucky enough to be there. >> we have our hats. >> as part of your study, one of
2:24 pm
the things that leapt out at me and without getting into the weeds of the study, one of the indications was that african-american wealth as compared to an index against white wealth in america is at 4% that's quite shocking. >> this is shocking. it's systemic and it's long-term, but african-american wealth did decline with the great recession and has not recovered, mainly because so much of african-american wealth was tied up into equity in people's homes when that home ownership rate decreased and now it has yet to come back, that's what we're seeing with this wealth gap and also, people don't recognize the fact that maybe two-thirds of all wealth is intergenerational. people's ability to transfer wealth from one generation to another. so, yes, there are rags to riches examples, but much wealth
2:25 pm
is built up and accumulated. >> right and we have to leave it ere, mark, but incomes are one thing, but the deficits of income then compound over time as you suggest there into deficits of wealth you're at churchill downs. do you have a horse? >> justify >> justify >> i'm listening they're the favorite and there's a couple of other horses i'm taking a look but i'm also looking for a tip. >> i got none. >> text me your tip. >> i just choose by the silks. i like the jockey silks. i pick the jockey usually. mark, always great to see you. >> go with the jockey and go with the position in the line-up too. middle does best >> thanks very much. >> thank you when we come back, we will go to the president's address at the national rifle association leadership forum in dallas finanl advisor. for our firm, it's all about trust and transparency. trust that we do what's right for our clients, without the constraints imposed by the traditional brokerage houses.
2:26 pm
transparency in the way we're compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com
2:27 pm
2:28 pm
mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. hello, everyone. i'm sue herera here's your cnbc news update at this hour. paul manafort appearing in a virginia court today his attorney asking the judge to dismiss bank fraud charges against him, because they are outside the scope of the special counsel's investigation. the judge, however, has not yet made a ruling.
2:29 pm
the world health organization is targeting unhealthy fats in new dietary recommendations. the agency says saturated fats found in butter, meat, and milk should not make up more than 10% of a person's diet and it wants only 1% of daily calories to come from trans fats, which are found in baked and fried goods severe flooding in eastern canada is threatening homes and has caused part of a major highway to shut down officials say it's the worst spring flood in that region in more than 80 kbreerz years. residents have been told to evacuate and a giant sinkhole that opened up on a farm in new zealand this week is revealing a 60,000-year-old volcanic deposit. the sinkhole was more than 600 feet long and up to 98 feet wide you are up to date that's the news update this hour ty, back to you. >> thank you very much, sue. markets right now, nice gains, better than 1% for all the major averages there's the dow. the s&p about 1.5% and the
2:30 pm
leader there, up nearly 2%, is the nasdaq all 11 s&p sectors higher. tech and materials leading the way. your dow leaders are apple, mcdonald's, dupont, travelers, apple hitting an all-time high, by the way the oil market is closing for the day. jackie is at the cnbc commodities desk >> hey, michelle crude prices making a serious test of $70 a barrel today before the weekend, you see a little short covering. this has been an oil market with an upward bias for some time that probably isn't going to change in the coming weeks as we wait to see what happens with iran and as the demand needle moves up aheaded to summer a test this close to $70 means a cross is coming soon definitely something to watch for. about a 2% pop on oil. >> thank you very much, jackie we are awaiting for president trump to address the nra and we will bring that to you live as soon as it begins. stay tuned oh, also ahead, we'll take you inside the story of warren buffet's extraordinary success,
2:31 pm
a look at the events that made him who he is today. it's all being revealed in a cnbc documentary tonight we'll give you a sneak peek next
2:32 pm
2:33 pm
2:34 pm
we are waiting for president trump to address the nra we'll bring that to you live as soon as it begins in dallas. in the meantime, nike ceo mark parker apologizing to employees during a companywide meeting yesterday. according to a copy of his speech that we obtained here at cnbc, parker acknowledges that nike's corporate culture may have left some feeling excluded. he also points out that complaints from employees were not always taken seriously, saying, quote, throughout all of this change, we and i missed something. while many of us feel like we're treated with respect at nike, that wasn't the case in all teams, and if all of our teammates don't see the same opportunities, we just can't accept that. parker than apologizes, saying, quote, i apologize to the people on our team who were excluded and i apologize that some of those same people felt they had no one to turn to. guys, he calls this a painful
2:35 pm
moment for me personally and a painful moment for many of you but bottom line for investors, i think, he says, i'm in 100%, and i'm counting on you to be all in too. in other words, he takes responsibility as ceo, but also commits to staying on as ceo the number two, trevor edwards, widely seen as his successor, had to leave as a result of this really unfolding corporate, internal scandal full of hr complaints that are somewhat vague. >> we still don't, right >> we don't know the exact allegations. we know it fits under the bucket of violating hr policies, bullying, harassment, lack of promotion, gender bias, et cetera. >> he's got to rebuild the bench there. and there is president trump >> thank you thank you very much.
2:36 pm
oh, we love you folks. we love you. not bad. thank you. thank you, folks thank you very much. great honor to be here and i want to chris. so many people have done such an incredible job, and these are real patriots. they really are, and they don't get the kind of adulation, but really, they do, and we know that and i want to thank wayne lapierre i want to thank my friend, our great vice president, mike pence, for his terrific -- i also want to recognize our great texas leaders. do we love texas do we love texas
2:37 pm
governor greg abbott, my friend. where's greg governor greg abbott and he's running and i've already done it but i will tell you, greg, i fully endorse you you are endorsed done a great job i'll tell you, you had your water just pouring down on top of you, just kept coming and coming he kept calling and calling, we need more money, money, money. and you know what? we gave it to you. fully endorsed attorney general ken paxton, tremendous guy and by the way, ken, you have my full endorsement and angela, your wife, has my full endorsement. she just had a big victory senator john cornyn, been with
2:38 pm
me right from the beginning. john, thank you. thank you, john. full endorsement for this man, ted cruz where's ted? where's ted? >> thank you boy, that was very rousing that's a good sign congressman pete sessions and congressman mike burgess great friends. we're also joined by pete, dana
2:39 pm
loesch, diamond and silk where are you? where are they they're so great mark geis, pete brownell and leslie rut ledge finally, i want to thank all of you, the true american patriots of the nra who defend our rights, our liberty, and our great american flag. thank you. thank you very much. the people in this hall have never taken our freedom for granted. never. and you have never stopped fighting for our beloved constitution incredible people. thank you. you give your time, your energy,
2:40 pm
your vote, and your voice to stand strong for those sacred rights given to us by god, including the right to self-defense and now, thanks to your activism and dedication, you have an administration fighting to protect your second amendment, and we will protect your second amendment. your second amendment rights are under siege, but they will never, ever be under siege as long as i'm your president all of us -- thank you
2:41 pm
thank you. all of us here today are united by the same timeless values. we believe that our liberty is a gift from our creator and that no government can ever take it away we believe in the rule of law. and we support the men and women of law enforcement we have pride in our history and respect for our heritage we put our hands on our hearts for the pledge of allegiance, and we all proudly stand for the national anthem. we proudly stand.
2:42 pm
[ applause ] >> what people what great people. and this is your record crowd. you know, all-time record crowd. you do know that just remember. nice to set records. we love our country, and we believe our citizens deserve a government that shows them the same love and loyalty in return. for the last 15 months, that is exactly what we have been doing. we are all finally putting america first.
2:43 pm
and we are seeing the incredible results. as a result of our massive tax cuts and everybody is benefitti benefitting and everybody is happy, and the democrats are very concerned you watch how well we do in '18. you watch. you watch. get out and vote don't be complacent. don't be complacent. you know, history says that when you win the presidency, you get complacent we all know the feeling. you know the feeling not too many like 90% of the time, you win the presidency and for whatever reason, you lose the midterm we can't let that happen and the word is complacent and i kept thinking, why is that you win. you have this great win.
2:44 pm
now you take a breath, you relax. all of a sudden, two years is up, they're fighting like hell, and you're complacent. we cannot get complacent we have to win the midterms. because since the election, we've created 3.2 million jobs unthought of if we would have said that three years ago during the campaign, people would have said, what a horrible exaggeration. that's so terrible they wouldn't have believed it 3.2 million. the unemployment rate, you saw that just today, just fell beneath 4% for the first time since the beginning of this century.
2:45 pm
>> you know, i heard it was about 19 years i said, wait a minute, the beginning of the century sounds better so i say, the beginning of the century. we're beautiful. african-american unemployment has reached another all-time, in history, record low. in history and by the way, kanye west must have some power, because you probably saw i doubled my african-american poll numbers. we went from 11% to 22% in one week thank you, kanye thank you.
2:46 pm
when i saw the number, i said, there must be a mistake. how can that happen? even the pollsters thought there must be a mistake. now we've come a long way. you remember i'd come into big rooms, big audiences, and i'd say, what do you have to lose, because the democrats have always had their vote. i say, what do you have to lose? horrible on crime, horrible on education, horrible on everything ooids sa i'd say, what do you have to lose and they voted for me, and we won, but now the numbers are much higher than they ever were with african-american -- and what happened. and the same thing with hispanic-american unemployment which is also at the lowest level in history unemployment, lowest level in history, and women, unemployment -- women, many
2:47 pm
women, is at the lowest level in almost 20 years. think of that. so, we have the best employment numbers we've virtually ever had, and yet all we hear about is this phony russia witch hunt. that's all we hear about so, just when i'm walking on the stage, a highly respected judge in virginia made statements. it says, "wall street journal," it says, judge questions mueller's authority to prosecute manafort now, paul manafort's a nice guy, but you know, he worked for me for a very short period of time, literally, like a couple of months little period of time. then what happens? he worked for ronald reagan. he worked for bob dole they worked, i think, as a firm for john mccain.
2:48 pm
they worked for others does anybody say that? no but he's out there fighting on fake news cnn. i think nbc may be more distorted and worse, but -- no, but on cnn, they have a headline, judge in manafort case says mueller's aim is to hurt trump. can you believe that this is what we're up -- it's called the witch hunt. so, i just said, give me that article. i want to read it. just happened a few minutes before i walked on stage a federal judge friday questioned special counsel robert mueller's authority to bring tax and bank fraud changes unrelated -- unrelated -- nobody knows that everybody thinks, oh, unrelated to the 2016 election against former trump campaign manager, chairman paul manafort, who was
2:49 pm
there for a short while. but he's a good person he is. i really believe he's a good person judge t.s. ellis, who is really something very special, i hear from many standpoints, he's a respected person, suggested the charges before the u.s. district court for the eastern district of virginia were just part of the mueller team's designs to pressure mr. manafort into giving up information on president donald trump or others in the campaign. i've been saying that for a long time it's a witch hunt. none of that information has to do with information related to the russian government coordination and the campaign of donald trump doesn't have anything to do. it's from years before then, how does this have anything to do with the campaign, the judge asked. let me tell you, folks we're all fighting battles, but
2:50 pm
i love fighting these battles. it's really a disgrace. a disgre thank you, thank you can you imagine if we ever called for a rally in washington, d.c. it wouldn't be enough room there wouldn't be enough room. we have a lot of love going on people don't realize we have great love going on in this country, great love. it's right here. we have, and, by the way, you just saw the recent poll that came out, 51 or 52, highest level i've been at how does that happen when you only get bad publicity how does that happen that's because people realize --
2:51 pm
that's because people realize that a lot of what you read and a lot of what you see on television is fake they realize it. the people are smart the people are smart to you have a battle also. you have a battle to keep your rights, and we're going to keep those rights you're going to be so happy. you have to say. you weren't sure trump was going to win, but you all went out there, and you voted, you voted. and there were times they put up trump-pence, trump-pence, and signs saying a week before, i remember they came out with a lot of phoney polls. you know what that's called? suppression. they convince you that you're wasting your time. why vote go to a movie instead. go home. very few people in this room, in
2:52 pm
this country did that, and we really had a big night remember they said, there's no way electoral college, no way, but there is no way to do 70, and they were right, but 306 was okay 306. so we had a great time, and i think we're doing better now than ever before i think we are more popular now from the standpoint -- when i was running, i said we're giving you tax cuts, and, by the way, we are decimating obamacare. we got a bad vote the evening that we were going to terrible nate obamacare we got a bad vote. you know about that, right
2:53 pm
that was not a nice thing. that was an unexpected vote, but if you look at the massive tax cut bill, we also got rid of the individual mandate, which is the worst part of obamacare. right? i don't know if the people in texas like this, anwar in alaska, it's called energy for the country, it's called energy. that we learned. so i think you're happy with that, i think you're happy with that, right? to we have delivered when we were running, we're going to this, we're going to that, especially a person that's not a very fair person, and the media said, i have to say, trump has actually delivered more than he promised, which is probably the first time people ever heard that statement
2:54 pm
we actually delivered more than we promised, and let me just tell you this, we are really doing well with north korea. we are really doing well all right? we're doing real well. remember they said, oh, it's going to be terrible they were actually saying three months ago when the rhetoric was rabid sharp, i'm not using the rhetoric now, i'm trying to calm it down a bit, i'm not using the rhetoric i know you come from texas, whoever that you are look, for years, for years they had this problem, and everybody has said, don't talk, don't
2:55 pm
talk the last administration had a policy of silence. don't talk you may make madman angry! don't talk if a horrible statement is made about the united states, don't say anything we have no comment please, please, oh, my gosh. same thing with iran, remember signing that horrible deal, and they are marching in the streets saying death to america. i said, who signs a deal when they are marching saying "death to america"? they are saying "death to america", and we have the former
2:56 pm
administrati administration as represented by not the best negotiator we've ever seen. he never walked away from the table other than to be in the bicycle race where he fell and broke his leg. that was the only time i said don't tell them you broke your leg, just stay inside and say you don't want to negotiate. but he broke his leg i learned from that. at 73 years old, you never go into a bicycle race, okay, just don't. you just don't do that i'm not 73, he was okay i'll be there.
2:57 pm
we have grease things going on with respect to north korea, and they said, this is going to be nuclear war. no, you know what gets nuclear war? weakness gets you nuclear war. being weak gets you nuclear war. that's what gets you nuclear war. so let's talk about guns, shall we paris, france has the toughest gun laws in the world. the president just left washington, a great guy. nobody has guns in paris, nobody we all more than 130 people plus tremendous number of people horribly wounded you notice nobody talks about that they talk about the people that died, but they never mention
2:58 pm
that 250 people had horrible, horrible wounds. they never mention that, but they died in a restaurant and various other close proximity places killed by a small group of terrorists. they took their time and gunned them down one by one boom come over here boom come over here boom if you were in those rooms, one of those people, and the survivors said, it just lasted forever. but if one employee or just one patron had a gun, or if one person in this room had been
2:59 pm
there with a gun aimed at the opposite direction, the terrorist would have fled or been shot, and it would have been a whole different story right? president trump addressing the nra conference in dallas, talking about the situation in pare, friday the 13th, nearly two years ago, and market higher by 362 points, a strong session in the wake of the employment number of out this morning >> with the big rally, the weak gains are not gains. they are red for the dow and the s&p 500, even with the day's 1.5% rise there, and higher for nasdaq, but not for the s&p or dow industrials. >> it's broad based, though. technology in the lead, consumer staples doing well, and materials, and even financials getting a boost. >> everything up today, all 30
3:00 pm
stocks up earlier last time we checked our magic wall there, led by apple on the strength of warren buffet's investment in the company. >> up 367 points from yesterday's low on the dow think of today's gains in the context of yesterday's reversals. thank you for watching "power lunch", and "cloeting bell" starts right now i'm wilfred frost from the floor of the stock exchange, bulls taking control, and stocks soaring in the friday session. >> reporter: we're at stanford university talking to top fed officials. hitting an 18-year low, why are wages slow to follow >> i'm julia in los angeles, major changes considered at facebook which could give you the option of paying to use a new version of the social network. >> i'm brian sullivan in dallas and tens of thousands of gun owners are gathered for the biggest meeting ever a new way to cut the cost of the next vacation or business

0 Views

info Stream Only

Uploaded by TV Archive on