Skip to main content

tv   Power Lunch  CNBC  April 17, 2019 2:00pm-3:00pm EDT

2:00 pm
we have contessa, tyler, and also joining in a few moments, let's get a check on the markets. we're a few moments away from a big announcement the dow industrial is just about flat the s&p 500 off by about six points and the nasdaq composite off. the fed page book is out steve liesman has the details. >> reporting slight to moderate pace of growth there's a faintest bit of inflation. there was similar growth as the last report. for most but some did see strengthening. consumer spending was mixed with sluggish sales for retailers and autos. contacts in many districts noted trade related uncertainties and about as many mentions, 28 employment continued to increase and the majority of districts say there was a shortage in high skilled jobs that was all over with continued
2:01 pm
wage pressure. most districts reporting moderate wage growth prices overall were up modestly. input costs increased with higher fuel prices tariffs, freight costs and rising wages were driving prices in the report. let me go some of it in st. louis retailers are expected to pass along higher prices their flooding was concern including st. louis, minneapolis, and kansas city, especially in the agricultural sector dallas noted elevated wage pressure philadelphia had a survey that said 55% of firms expected higher input costs and in new york interesting, a widening gap between salaried demands and salary offers with difficulty of some firms finding people because of the salaries demanded and for tyler especially i will tell you hotels and broadway ticket prices were down 10% in the new york city area thank you very much. i'll have to toss it to dom.
2:02 pm
>> let's bring our panel for more reaction on what steve said let's bring in joe, chief economist. and lori, head of u.s. equity strategy with rbc capital markets. as we do customarily, lori, we'll start with ladies first. the headlines read out seem to be consistent with the narrative that we've seen the past few months with regard to the fed, what it's watching for, and maybe even some of the economic data speaking with themes. >> so far it seems consistent with what we heard coming into the reporting season, the general chatter. the wage pressure part was interesting to me. that tells me we need to keep an eye on corporate profit margins. that's been a challenge. what i was sort of listening for is if you think about the sort of fed hike versus fed cut camp. we've seen in our own conversations about two-thirds ovlt investors we speak with have been looking for a cut.
2:03 pm
a third looking for a hike i'm not sure that debate was settled in what we got today zl did you read that did you have any inkling >> i think it's useless. they should get rid of it. >> it's so beige plain. >> that's true tan book >> it's not that they're getting industry contacts they speak with to give them information. i'm sure the companies you talk to you're getting information from them. they get it on earnings call you don't need the fed page book, personally, and by the way, steve mentioned the inflation news the problem is you don't see it in inflation expectations or the inflation data this has been going on for a while. >> what would make it relevant in your opinion? >> nothing i think there's better data. it doesn't do a good job of actually giving us economic inflection points. there should be a challenge -- >> you should take the cover page, change the date and see what year it was >> it's wrong? it's not good. >> well, that's part of it
2:04 pm
again, you're collecting it, a person is calling from a district their contacts and it depends in part on what they're looking for. some of the more hawkish districts like cleveland or st. louis might have more of an inflation bend this is what i found years ago as we've gotten technology and you can word search and google everything, i don't find it that useful >> laurie, you have to model things out you're looking at things like corporate earnings and reports and data points on cpi for the economy. there has to be something that you see outside of the fed beige book that gives us a more complete picture than what joe is saying with the beige book itself >> right i think the problem and why reports like these are important right now is the data is not conclusive and so if you look at things like nonforbe payrolls, we've seen things have been weak, not as weak as they were in 2015, but they are starting to stabilize. but i think it's just not clear from looking at the hard data
2:05 pm
itself whether we're digging out from the rough patch that we had in the first quarter or if we're tipping into something worse what i'm hearing in the anecdotes whether it's company reports or the beige book is that we're not tipping that things are pretty stable. you can make the case we're climbing out i would argue these things matter right now >> i'm told steve wants to jump in maybe to defend beige or maybe not. i don't know steve? >> i think one point is beige book is a disclosure document or transparency document where the federal reserve officials are revealing to the public what they're hearing. and by the way, it's done a pretty good job at telling us things that are on the minds of fed officials. for example, the predominance of trade in the beige book. the predominance when weather is an issue in the beige book they tell us, for example, that the fed is aware of these factors and looking past them. i don't know
2:06 pm
sometimes it's a pretty good job with the language in signaling some inflection points i think that's how we look at it we look at it and say what's on the mind of the fed? what are fed officials hearing from their contacts? the beige book is a disclosure of that. in that sense, i find it useful. >> steve, what about the growing corporate bond situation something that you and i were talking about earlier. giving the rising level of u.s. corporate debt, is that something that the fed should be considering in the beige book? i mean, given the risk involved? >> you wouldn't really see it here there is some discussion of banking. this is more a look at various growth components of the economy. to the extent it deals with banking, it deals with loan demand and loan growth there's a mention in there in st. louis of the credit quality of borrowers going down. the issue of corporate debt, corporate leverage is something the fed deals with through a
2:07 pm
separate track which is their supervisory roles. you see that in other reports as well as in speeches. and it's something they're concerned about, whether or not there's reason to do something about it is a different story. >> joe thoughts >> fed is going to ease. can the economy is stabilizing at a weaker level. there's a lot of risk. the fed has -- >> joe >> and i don't see any inflation notwithstanding the beige book >> joe, quick, we upgraded q 1 today. >> i know. >> your part of 2.1% we started at 1. that's where you are >> i'm still at 1. >> -- >> i have a question for you, though >> i don't want to bring the heat at the end of the discussion here. >> i want to ask you a question. if you look where everybody was in early december, it was 2.4. basically close to where you are and the atlanta fed is i want to know what happened to the bad weather and the government shutdown? i guess it didn't matter
2:08 pm
>> it seems to have worked through. we looked at the government shutdown in the beige book, only two mentioned. it look like a decent snapback we're going to be around 2 we're going to go back on the trend. >> gentleman's bet, i got the low end. >> i'm going to stay out of this one. joe and laurie, thank you for that update on the beige book. now to the floor of the new york stock exchange. bob is there >> hello, tyler. the one thing very important i think the fed mentioned is wage pressure and higher costs in general. because this is now being paralleled in the earnings commentary only 45 companies reporting. a pile of them are specifically talking about higher wage costs and higher overall costs we see lanar auto zone costco, j.b. hunt just in the last week or so all talking about the higher costs and remember something, we're having flat to slightly down
2:09 pm
earnings revenues are up about 5 %. this clearly is a margin pressure on the markets. the fed is not a big story for the stock market what moves the stock market now is perceptions on china and the gdp was positive for the bulls and earnings overall and the earnings have been better than expected, because the expected catastrophe in china and europe to a certain extent didn't really materialize. analysts cut their numbers in december and companies are beating by a much wider margin than they normally do. that's supportive for the markets. >> back to you robert, thank you. breaking news on facebook moments ago. the social media giant is apparently working on a voice assistant to rival amazon's alexa, apple's siri and others we have the reporter behind the story joining us now what are the details, sal? >> thanks. that's right basically i spoke with some
2:10 pm
former facebook employees who told me the company has been working on a new ai voice assistant since early last year. this is a project that's being led out of their remote offices over in redman, washington and the goal is to essentially have a assistant that can rifle alexa, google home, apple, siri, whatever it may be >> i was going to say really quickly, i remember seeing this on my instagram feed this morning. that facebook is cutting the price of its portal device to 99 more and it already comes enabled with alexa how does this change the dynamic? is this because facebook is trying to move more items or do they believe voice assistant technology is their future >> at this point in time, if you're a tech company, you have to have a voice assistant. look at miercrosoft. they have cortana. that's the same space facebook
2:11 pm
is in. with the portal device, they had to add alexa their own assistant was not at a level capable of handling those complex commands they have an assistant called portal and it will do simple things like launch a video call and the hopes is to essentially build their own assistant that can take much more complex type of actions >> it seems like a pretty complex system i talk about things and all of a sudden i see an ad on facebook the interpretation seems pretty good to me thank you for the report a majority of retired pro athletes experience financial stress on bankruptcy within a few years. many of them call it quits coming up, we'll talk to a current new york jet who is working to fight the trend he teaches financial literacy at an ivy league school first, shares of apple and qualcomm climb after the two buried the hatchet in their chip fight. what does it mean for these companies and the future of 5g
2:12 pm
wow. look at qualcomm up almost 12%. the latest innovation from xfinity
2:13 pm
2:14 pm
isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.
2:15 pm
are shares of apple and qualcomm higher after reaching a settlement in court. we are joined with the latest details. both stocks are on the move. >> that's right. that's what happen apple gets access to qualcomm's 5g chips. as for qualcomm, its ceo spoke exclusively with cnbc today about this new deal. take a listen. >> a deal like this, it doesn't come together overnight. it takes a lot of talking between the teams. a lot of -- tim and i had a lot of talking together. and we ended up in a deal that both companies like. and really if you look at the focus of that energy now, it's very much on let's get the products out it really clears the way for i think a much more natural relationship between the two companies. the agreement includes a one-time payment from apple to qualcomm a six-year license agreement
2:16 pm
a multiyear chip set agreement they will add two dollars a share to their earnings. the value not disclosed. neither was the royalty rate per iphone you can see the sigh of relief from qualcomm investors today because this case drove right to the heart of its business model. qualcomm sells chips and licenses patents for a royalty on the rice of each device that's its bread and butter which was under attack in this case now the big fight with apple is history. back to you. thank you very much. why did they decide to settle, apple? >> tyler, there's a great piece by our colleagues on listen, we know both sides were pretty entrenched at this point. both sides may have ultimately come to the conclusion, tyler, that they needed each other and they had more to gain from partners than fighting in court.
2:17 pm
apple needs qualcomm's 5g chips. there may be different companies pursuing that company. it's qualcomm that has the lead. at the same time qualcomm can't afford to have the biggest company in the world telling its contract manufacturers not to pay it that's going to cause a lot of uncertainty for the company and the business model >> thank you as josh mentioned a big story on right now it went with the least aevils. let's bring in steve for a second time this week. it wouldn't be a way without you here how are you, man >> great >> he has a hold rating on apple with a price target of $175. we talked a little bit about we nibbled around this yesterday, and it was sensitive because we didn't know what was happening. a few minutes later the
2:18 pm
settlement is announced here on this program i guess that qualcomm gains more than apple because qualcomm had more to lose than apple did. >> no question and obviously you see that in the stock price reaction over $2 benefit to call kom. they've been shut out of the last round of apple phones but you were just asking why apple had to do this it was basically because intel was unlikely to come through intel was nibbling away at the mode m share of qualcomm it looked like they couldn't deliver a 5g chip set for next year already apple is a bit behind. some of their competitors will have 5g this year. apple doesn't need to be first, but they need to be there and they need to be there next year. the reason this was such a shock is there was an article on sunday saying there's no way this is going to get done easily i think apple was backed into a corner >> these guys did not like each
2:19 pm
other. from all background reports was that the fight had become acrimonious and personal intel feels like i don't know whether this matters to intel in a major way. we were speaking last hour that now they'll -- i think service josh that said they'll probably turn toward making chips for 5g that serves the infrastructure as opposed to the hand set and consumer market. what's intel's gain or loss here >> well, i would guess that intel's cutting their losses a bit here it's not clear what the timing is everything happened together it's not a coincidence my guess is that apple probably knew that intel was going to throw it out, and it wasn't probably working for apple anyway intel has other businesses in which it's doing much better in terms of server processing and data center and so forth so it's apparently going to be a move for them to cut even though there's lost revenue i guess that's why intel stock
2:20 pm
is reacting what positively. we talked last hour about ibm and some of the issues it's having right now is there a bullish case for ibm given what they reported we know you have a hold. what gets it to be a buy >> i think there's a developing bullish case potentially you're beginning to see services margins targeted nv it's about cloud can ibm become more relevant in chapter two of the cloud chapter one was setting up the public clouds. chapter two is helping large enterprises move their enterprise workloads into hybrid cloud and ibm may have more to say to say about that. i'm not convinced about that, but i would say there is at least a developing bull thesis even with the revenue short fall, it wasn't the find we saw over the last couple years from ibm. the business is stabilizing. >> steve, we'll see you tomorrow thanks >> i want my regular spot. >> keep it warm for you. thank you.
2:21 pm
>> thank you >> are you ready for this? the power lunch stock draft is just a little more than a week away in minutes we're going to pick the draft order. this year's showdown has it all. bethany and mr. wonderful are back bobby flay is in it's cooking and the returning champ nick lowry. shares of las vegas sands climbing nearly 30% this year. lbs reports after the bell today, the key metrics we're watchi sait eangtrghahd. let'r world for investing. let's hold ourselves to the highest standards of ethics. as investment management professionals, let's measure up. cfa institute. 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.
2:22 pm
and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. [kno♪king] ♪ memories. what we deliver by delivering.
2:23 pm
transparency. expertise. these are the building blocks enduring relationships are built on. as investment management professionals, let's measure up. cfa institute.
2:24 pm
welcome back to power lunch. we're at the new york stock exchange the transports trucking higher after csx and kansas city southern is the road clear for more gains? our team is with us today. transports had a good run relative to the market still about 5% off their record highs. how do you see the risk/reward setup. >> it's favorable. if we look at the dow jones industrial transport index we've seen over the last few months that this pattern has been a bullish accumulation pattern
2:25 pm
taken the shape of an inverse head and shoulders we're breaking out of the pattern today. 11,000 is key. above that level there's not much to stop this from the running to the 2018 highs. >> all right >> relative breakout >> going to say maybe a see juncture with another round number gina, a decent sign, i guess, for what the economy might be doing. how do you see it as an investment prosect >> you're right. remember the transports are coming off of 20-year high volumes in 2018. they're going to naturally slow. but from a valuation perspective they look really healthy this ride is going to be as solid as the s&p on average. it would be very very good they're expected to grow at an earnings rate at about 10% growth for the rest of the year. that's still pretty good >> yeah. 10% growth for cheaper than the market pe seems like a decent
2:26 pm
tradeoff gina, jc, thank you. for more information follow us on twitter at trading nation ahead on power lunch, the next big ipo pinterest expected to price above expectations everything you need to know about that ipo next. plus one of the world piece biggest casinos set to report results after the closing bell what's in the cards. see what i did there for las vegas sands. then we're tackling the challenge many athlete have with financial literacy and with us to help break it down is new york jets line backer turned ivy league professor brandon copeland after this break. and now the latest from trading nation and a word from our sponsor. some people say buy and hold investing is dead. there's nothing wrong with that strategy as long as you don't buy and forget about it. it's important to make sure your portfolio doesn't become overly
2:27 pm
concentrated in one stock or sector due to market appreciation don't forget to rebalance your portfolio every six to twelve months to maintain your target allocatio lotion internet that puts you in charge.
2:28 pm
alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.
2:29 pm
2:30 pm
hi, everybody. here's your cnbc update. dozens of medical practitioners are in custody in their roles in illegally distributing opioids a press conference to announce the arrest of 60 people. >> today's takedown represents the single largest prescription opioid law enforcement operation in history with the highest number of medical professionals ever charged by the department for prescription opioid-related crimes >> walt disney pledging $5 million to aid in the reconstruction of the notre dame cathedral of month's fire. it have the setting for disney's 1996 animated adaptation of hunch back of notre dame and bennie jerry is
2:31 pm
recalling ice cream that may potentially contain tree nuts that are not in the information list check on that freezer. that's the cnbc news update. >> typically with chunky monkey it's like you can pry this out of my dead, cold hands >> cold the operative word markets right now, let's look at the dow jones industrials and i should mention at the same time that the nasdaq and the s&p near session lows. dow is off just about flat at this point still in the red the s&p off by a third of a percent and the nad zach dosdaq about the same the oil market is closing for the day. let's cover oil. >> i cover it all. if you look behind me, it's basically a zero day oil prices closing lower during a relatively tight trading range for most of the day. brent crude hitting a 2019 high earlier today touching above $72 a barrel boosted by the resilient
2:32 pm
economic data out of china and a drop in u.s. crude stockpiles last week. still, uncertainties surrounding global output remains as investors look to see if they waive a program earlier. >> thank you pinterest expected to price above expectations how difficult is it to come up with an ipo price? lyft was higher than expected but has faced a bumpy road since the ipo. jumia was a lower price. it soared since the initial public offering. here to break down the numbers, leslie picker is back to tell us all about the ipos >> unless you have a crystal ball, it's difficult to price an ipo and know exactly how it's going to perform after but it appears that both pinterest and zoom are expected to price above expectations today. two sources say pinterest is targeting a price above the marketing. 18, 19 or $20 a share.
2:33 pm
likely no higher zoom similar story that company is targeting a price at the high end of the recently boosted range or even above that new range now, selecting an ipo price is far more an art than a science and no one is ever happy here. pick a price that's too high, shares drop. too low, the company forgoes money it would have plunked back into the business. in agate companies have left $65 billion on the price by allowing sources to soar. that represents 13% of the total amount of proceeds raised between 2001 and 2018. but does it matter in the long run if a company's stock price gains or falls in the first day? it turns out it doesn't on a market adjusted basis. first day returns have little predictability for long-run returns post ipo >> all right leslie, thank you. las vegas sands reporting
2:34 pm
earnings this afternoon after the bell shares are up more than 30% this year but this morning hsbc downgraded sands china. that's important because the company gets the majority of its revenue from mccaw what's in the cards for investors? let's bring in our gaming analyst, harry curtis. talk to me a little bit about what we've seen in mccau this first quarter and how it applies to wynn and mg m&m elco as well. >> the high end business, the vip business has been weaker than expected. but more importantly, the more profitable mass business has been quite a bit stronger than expected and that's about four times more profitable than the vip business that higher mix of mass business plays very well into las vegas sands. but less so more wynn and some of the more regional operators there. >> i'm looking at some numbers
2:35 pm
that indicate there were 10% more visitors to mccau in march than there were last year at this time in part because of the new bridge from hong kong to mccau has allowed people to drive there or a round about way of flying yin you say there's more important indicators because of renovations? >> one of the reasons we've been probably more cautious on the stock than others has been their plan to renovate their second most important casino in mccau and that will probably kick off in the fourth quarter. so when that typically happens, there is a fair amount of disruption which can be severe in las vegas, for example, when mgm undertook a major renovation of the monte carlo, their cash flow got decimated
2:36 pm
>> harry, last quarter we saw that the founder, the ceo chairman missed the earnings call he was feeling under the weather. he's missed a board meeting. he missed a court hearing where he was supposed to testify the company tells us he's fighting nonhodgkin's lymphoma and the treatment makes him tired. how closely are you looking at how important he is to the future of this company and their succession plans for him >> i tell you, shell nadlson has been a visionary for this industry for over 30 years, and his -- whether or not he's on the call, i think is an important issue that investors are going to focus on. there is a succession plan it's been in place for a couple quarters but the fact is that when a company no matter what the industry loses its founder and reason for existence, quite
2:37 pm
frankly, it's a concern. >> harry, one of the things we looked at is all of these major casino companies are up massively so far year to date. what is it that rede rails the investment thesis for many of the big operators whether it's the u.s. or mccau? >> i think it's more mccau if you look at how the stocks performed in the fourth quarter of last year, they underperformed significantly and that was because of concerns over the chinese economy you've seen data today and over the past several weeks that confirm our thesis early on in the year that the chinese economy was going to recover and we're seeing the positive impact on the stocks now. >> so harry, what's your favorite stock in the group you follow >> it's been melco all year. the stock is up about 47% this year >> good for you. >> even a blind hog. and now i think that the sentiment is pretty miserable on
2:38 pm
mgm. i think there are a number of positive catalysts there between now and the end of the year. so we're encouraging folks to take a look at that. >> and caesars going through a lot of changes a lot of talk about whether it's going to be for sale would it be broken up and sold in parts what's your take on caesar's and a new ceo named this week? >> yeah. caesar's is interesting, because we think the stock can get to $12 a share whether there's an m&a action or not. the m&a piece of it is going to be more difficult. we've been in print saying there's a 20 to 25% probability of that happening. and if it doesn't, then the interesting question is is mr. rodeo the final answer, or would they keep the search going and we don't have an answer to that >> harry, great to see you thank you for coming on. >> thank you all right. we're just a week away from our annual cnbc stock draft that
2:39 pm
pits people against each other for the best returns and the coveted title of best investor of the year. we have ten teams playing this year we're going to pick the draft order next >> this music fires me up. >> oh, man, it's the best. really? [horn honks] man this is what i feel like when i wear regular shoes, cramped and uncomfortable. we can arrange a little upgrade. which is why i wear skechers... wide fit shoes. they have extra room throughout. they're like a luxury ride for my feet. try skechers wide fit shoes. they're like a luxury tthis is where i trades. and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets.
2:40 pm
ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more. you still have service? call the insurance company it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here not you. right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by using machine learning and analytics to automate claims, cognizant is helping insurance companies advance how they serve even the hardest-to-reach customers. cool ♪
2:41 pm
when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.
2:42 pm
mounting just a week away now from the 20919 cnbc stock draft the roster is bigger than ever ten teams. so many big names we have to go to ten new this year noah syndergaard, bobby flay and oz. pearlman. also returning favorites nick lowery will be here. kevin o'leary, the winner the year before and the real housewives star bethenny frankel. now it's the moment everyone has been waiting for the draft order. here's what we do. i spin you can reach in and pick or i can open it and hand it to you you'll read and dom will memorialize the picks. let's get it started
2:43 pm
>> it takes all of us to do this >> round and round it goes >> there's one that's stuck in the hole ring. >> my od, they're all falling out. i'll hand you an envelope. open the envelope. >> now the envelope. the first one, beardstown ladies >> the ladies get first pick >> we're going to put them on the board right now. let's put our teams up here first. you did say periodstobeardstown? >> i did >> they get the first pick >> i think we're going backwards. >> we're doing this in reverse order? >> they have a lot of stocks to choose from. they sent us a picture they're already working. >> they're working right now >> the ladies go 10th. >> number nine, oz pearlman. >> oz knows goes here. we'll move them to the number nine spot. >> all right let's get another one out here
2:44 pm
>> i wonderr if he knew that ahead of time. >> he did. >> this is number eight. it is kevin o'leary. >> mr. wonderful in the number eight spot let's put him over there this is shaping up nicely. >> here's another envelope >> he was the champion a couple years ago. number seven right now with noah syndergaard. >> we're going to put thor's hammer in the number seven spot. >> there's another one >> okay. and number six maria ho with blue ship leaders. >> we'll put blue chip in the lucky number six spot. >> oh, my goodness we messed it up here that's all right >> did i do that >> i did it. i did it >> number five, the chef himself, bobby flay. >> bobby's bowls goes to number
2:45 pm
five and we're getting close to the top -- >> do you think we have a future in a game show >> i don't think so. >> number four, nick lowery and nick the kicks picks >> last year's champion in the four spot. >> gets the fourth pick. >> can he still pull it out even though he's the fourth pick? that's the question. >> number three, beth nenny frank frankel. >> number three. that means only two left seymour alpha and the green machine. >> number two, jarvis green and the green machine. >> the green machine number two. >> that means we know who that leaves >> oh, there's our drum roll oh, man. our own insider tim seymour and seymour alpha. >> it moves to the number one spot right up there. >> there you go. all right. seymour alpha gets the first pick jarvis green, team yes >> will he pick a cannabis
2:46 pm
company? seymour has been all over those stocks >> i thought you were going to say something else remember, folks, the stock draft will be here next thursday live. the 25th at 2:00 p.m. eastern time on power lunch. and you can all play along this year pick the team you think will win and you can win a trip and behind the scenes tour of cnbc tour >> are you hosting that? >> come with me. >> i'm make a cameo. >> stay tuned on details on how to enter that contest. >> he tackles on the field but teaches in the field we're talking with talking to brandon copeland about teaching others on financial literacy back in two. ♪
2:47 pm
you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.
2:48 pm
2:49 pm
we're about a week away from the nfl draft. not just our stock draft that nfl draft is when college players can become instant millionair millionaires nearly 80% of nfl players go broke or face seasonal distress in their first two years after leaving the league our next guest has some tips not only for athletes but more
2:50 pm
anyone who is carrying debt. it's part of a cnbc financial initiative called invest in you. ready, set, grow partnership we have with acorns and the savings and investing app. brandon copeland is a line backer and currently financial class. he's a member of the cnbc invest in you financial wellness council. longest introduction of all time but we're glad to have you here. >> glad to be here >> how did this class come about, and what do you cover in it >> this class came about with myself i was a detroit lion before. and myself and a couple of my teammates were riding around the city trying to understand the landscape from a real estate perspective. i also flip houses and stuff and during the ride, one of the players was like, man, i just wish when i was in school we talked about credit and buying your first house and taxes and budgeting because it would probably save me so much tim and headache and i was like, that's not just something athletes need.
2:51 pm
like we all could use that that's where the idea came about and started pursuing it. >> you pitched it to a professor at penn, which was your alma mater. >> yep, yep. >> so how many kids are in the class? and they're not all athletes, i assume they may not be any athletes >> we tapped the class at 30 students for the first semester just to try to experiment with everything we had 180 students try to take the course, which was the most popular course at penn >> wow >> it was funny. the first day walking up to class with students outside trying to get in >> what's the term for that, oversubscribe? >> like an ipo >> can we go through what you teach. one, you say you should calculate all your expenses that require any income explain what you mean by that. >> so i think what we're trying to do with our class is try to make finance and investing and all of these different financial
2:52 pm
literacy terms human you get a lot of different cookie cutter advice save 50% of your money invest 30% or live off of 30%, invest 20% all that stuff but some people can't live if they are saving 50% of their money so the first thing i tell students is to calculate all their expenses first and foremost netflix, cell phone bill, rent and all that type of stuff because first, that will tell you just as a competitor where i can cut back i'm just spending way too much on cable and i barely look at it >> i'm curious because you are a penn grad. these are penn students. these are not the dumbest of people throughout. what is it that you've seen in the course of this class that's been the most misunderstood part of financial literacy? >> i think it's just unspoken, right?
2:53 pm
i think that i tell the class, two plus two equals four we've all learned it we practice our multiplication tables we practice cursive. we've never practiced budgeting, yet when you come out of college you're expected to know it right off the bat. a lot of this stuff kids don't know or understand because no one has talked to them about it. >> nearly two-thirds of americans can't pass a basic financial literacy test and only 17 states mandate in high school kids have to take a class in this shouldn't it be something that, one, starts earlier, maybe in elementary school, and that should be universal. the way that we expect multiplication tables to be learned and mastered by the time you're in high school. >> 100%. i think we spend -- i spent so much time in school, 16 years, and i learned the tangent of a 45-degree angle but no one taught me how to buy my first house. no one taught me about my
2:54 pm
credit i remember pitching this to the school what's our downfall here we teach kids they actually may use at some point in time. like what's our loss here? >> so when you look at your peers in the nfl, the notes indicate that you save very high percentage of income now you're lucky enough to have a nice high income >> makes it easy >> makes it easier than someone who has to use all of their income to pay their expenses >> 100%. >> as you look as your peers in the nfl, those who have made mistakes financially, what is the common thread? >> i think, first and foremost, and one of the pieces of advice i'd give to anybody being drafted or coming into the league is you just try to keep up with the jones. they try to do what other people are doing. >> you should not do that. >> you should not do that. that's the biggest mistake oh, this guy has a couple cars i need another car >> that's not just in the nfl.
2:55 pm
that's in america in general >> exactly that's another thing we've been trying to shift with this class. it's not just an nfl problem we're just -- our salaries are public so you can see what i make and if i'm not living according to those plans, you think that i'm broke, right >> your team has done a lot to get better in this off-season. you must be very excited about it le'veon bell coming. very good running back coming your way >> exactly >> receivers and so forth. you'll be a much stronger team this year. >> i agree i wholeheartedly agree >> and a new coach good luck. >> thank you so much >> and good luck with the class. i'd probably fail. brandon copeland for more of his story go to invest in you nbc universal and comcast ventures are investors in acorn. >> how do we follow that >> check, please, is coming up after the break. every day, visionaries are creating the future.
2:56 pm
so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country.
2:57 pm
e-commerce deliveries to homes state of the art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359 a month for 36 months.
2:58 pm
experience amazing at your lexus dealer. check, please. >> boston dynamics has shown us this amazing video of little robot dogs i'm calling them dogs, but they're just robots. pulling a truck. i think, you know, the example, yeah, yeah, we have engines for trucks i'm really interested what the application is in this in terms of helping people with disabilities, and cleaning the house, which we have robot vacuums but you still have to empty the -- >> every time i see a new boston
2:59 pm
dynamics robot video, i freak out a little bit >> because it looks like an army >> not just that the people robots, like can jump and walk down stairs and it's -- all they need is artificial intelligence >> an advancement in motoring here it doesn't really look -- it's cool to look at. >> it is pretty cool speaking of interesting here how about cbd-infused burgers. carl's jr., part of roar capital which also owns sonic and arby's and buffalo wild wings is going to introduce a cannabis-infused burger only on one day, april 20th 4/20 >> it's going to cost $4.20. >> especially since the fda bans it >> can you imagine >> the first pick to tim seymour. you think he may pick a cannabis stock. >> he's been into these cannabis stocks >> so to speak who is number two again? >> you can look on the board
3:00 pm
>> the green machine is number two. and there you see -- >> and bridgedotown ladies camei last >> he's a knicks fan >> thank you for watching "power lunch. "closing bell" starts right now. welcome. it's the final hour of trade i'm wilfred frost. >> i'm sara eisen. china's gdp coming in stronger than expected. jack lew is here to discuss what this could mean for trade talks. and pinterest pricing expected after the bell. why one analyst is saying to hold off on this ipo >> and is las vegas sands feeling lucky? we'll bring you the casino giant's earnings as soon as they are released "closing bell" starts right now.


info Stream Only

Uploaded by TV Archive on