Transcripts For CNBC Power Lunch 20170929

Moving a lot of First Responders there and we dont have an ability to sustain them with food, water and medical treatment. Its all part of a bigger plan again, were working in support of fema on that plan. How much its ten days since the hurricane hit. People dont have a lot of patience left along with not a lot of water and not a lot of food when you are saying its going to take time, how much time . Here is what i will tell you. We will be here until all the needs are met. Were going to be relentless in our pursuit of getting all these assets here to help the people its hard to imagine for those of the viewers that are back in the continental United States, its hard to imagine the amount of damage and suffering these people are going through they deserve help and were going to give it to them. I dont flow hknow how much have been briefed. Do you have any information about the island off the coast of puerto rico what i know is our support group, the navy ships that are off the coast, they have been dealing with that. Again, they have some capability we need more as it stands now, you are looking at half the island that does not have Running Water. I know getting generators to these water issues are its a priority to pump the water. What about fuel to those generators is there access now to get fuel to all these places . Its the same problem around the ring route on the outside of the island, were doing fairly well with getting fuel and now roads are open. We can move fuel by truck. Inside right now were limbited by air. I appreciate the time you have given us. I know you are off to actually do your official duties. So many people want answers. Thank you for giving some of them. Thanks, appreciate it as you can tell go ahead as you can tell here, a coordinated effort it involves fema and the department of defense and local agencies here in puerto rico we heard from the governor this morning saying that the ports are the absolute priority. They plan to go in and move those containers they said if the private companies cant go in and get containers full of essential supplies, they will be required to sell them to the government so the government can move them out. They are moving the those generators to water pumps, working on the electrical grid and have now powered they have the airport up and running, connected to the grid. One of the major hospitals here, Childrens Hospital connected to the grid there is movement. There is a sense now that with some attention from washington, d. C. And the federal response that people of puerto rico will start to see things improving. Thank you so much good to hear there is at least some progress being made a humanitarian crisis there. Have a good weekend. Keep the folks down in puerto rico in your thoughts this weekend as well. Power lunch begins now thank you very much. Welcome to power lunch. Melissa is here. Brian kelly is also with us. Welcome. Good to have you with us we begin with the developing story chronicled a moment ago in puerto rico. Our next guest ran fema during Hurricane Katrina and even before Hurricane Maria hit puerto rico he warned the agency would face a logistical nightmare in dealing with storm. Joining us is Michael Brown who oversaw relief efforts for Hurricane Katrina. Mr. Brown, welcome you heard the general a moment ago describe, i assume you did, describe the scene he saw there as looking like an atomic bomb went off how do you deal with that kind of destruction and how much more complicated is it to deal with it when it is on an island like puerto rico, st. Thomas, st. John you have an island that has been virtually destroyed just bear with me. Imagine two lines going at a 45 degree angle toward each other one is the Response Time the other are peoples frustration levels these move right toward each other. You take puerto rico now you have ports that have been damaged. You have railroads and you have runways that have been damaged after the storm passes, you have to move in to do a Damage Assessment to see what has to be done before you can move ships in once you make those assessments, you make the repairs but even then you have to make certain that the docks are safe so that you can off load the material before you can land a c130, make certain the runway is safe or the landing zone is safe. This is truly a logistical nightmare for fema i can guarantee you based on all the reports that i have seen, everything that i have heard from everybody both within the agency and other places, they are moving as rapidly as possible but the logistical nightmare of getting through all of these things you have to fix first before you can even get there necessarily slows things down. I know thats frustrating to the victims. Its frustrating to the public i can guarantee you that its frustrating to the fema administrator. Theyre doing everything they can to move it as rapidly as possible to your earlier report, this island has been destroyed. Thats the problem in getting all of these relief supplies in there. The good news is finish your thought the good news is, Damage Assessments have been done hospitals are coming back on line theres fuel on the island the question now is is how you distribute that fuel you are going to see an exponential increase in the Response Time, because these things are now becoming on line. Obviously, theres an acute need for food, for water, for fuel, for electricity. Theres going to be a longterm process here as well how quickly would you expect to see things improve on puerto rico, st. John, st. Thomas are we getting closer to a point at which the acute needs are going to be met . Its not just getting the supplies there to the ports and so forth its distributing them sometimes into very remote areas where the roads may not be passable. You just said something i think is incredibly insightful you used the phrase acute needs. Thats exactly how you operate in terms of response you address the acute needs first. The hospitals, the fuel distribution then you start going out and spreading that response out further inland into other parts of the remote portions of the island i think what people need to understand is, you are going to see these pockets of things being fixed while at the same time you have pockets that they havent gotten to yet because its so remote that, for example, if you want to get a rescue team or medical team in, you might want to i hear this all the time why dont you just airlift why dont you get a helicopter and get those medical teams in there today . You have to find a place for the helicopter to land and get those teams in there to your point about acute needs, you will see incredible stories of response helping people immediately. At the say the time i know the media does this. Its how the media works they will find these remote areas where people are suffering. Theyre working as hard as they can to get to those remote areas quickly. Getting there is going to be difficult. It sounds like you believe fema and for all for what its worth, all of the other rescuers and people there to help are doing the best they can. I want your thought on an interchange causing a stir elaine duke said, i know its a good news story in terms of our ability to reach people and the limited number of deaths taken place in such a devastating hurricane. That sparked the ire of the san juan mayor who said, this is not a good news story. This is people are dieing story. Do you think the administration really completely understands the situation on puerto rico when you hear those types of comments from the dhs secretary . I guarantee the fema administrator understands how dire things are. As you go up the food chain and in any bureaucracy, people are going to say stupid things i will say up front, im a no nonsense guy, that was a stupid thing for elaine duke to say you are in the middle of a crisis you have a humanitarian disaster you dont talk about good news stories. You talk about what you are doing. I would suggest that she gets a director or a pr person and learn how to tell the story that makes sense and understands that people are suffering michael, looking further down the road were getting reports about Corporate America pitching in. Today, the latest is that a Royal Caribbean ship is going there. Its going to pick up people and delivering items necessary to various other islands in the region a lot of the people getting on the ships, getting on planes dont intend on going back theyre going to miami they may never go back what do you think the u. S. Government needs to do to make sure when people come to the mainland that there is a support system for them here as well there is a support system you have both private organizations and public organizations that will help these people get relocated even though they may move from puerto rico onto the mainland, theyre entitled to certain Disaster Assistance programs they will still immediate to ner and get that help. I would emphasize again, i love it when the private sector comes in and starts helping. That take a coordinated effort the last thing you want im going to use the term cowboy i dont want to i dont want the private sector to be cowboys thinking they are going to ride in and rescue people and do stuff. They need to do that in coordination so everybody has the picture of what everybody else is doing. I know the private sector can do it the right way i just encourage them to do it the right way. Michael, thanks for your time we appreciate it you bet any time Michael Brown the president speaking at the National Association of manufacturers just a short time ago declaring the era of economic surrender is over hi. The president took his tax pitch to an already welcoming group of executives here at the National Association of manufacturers annual Board Meeting interestingly, his messaging focused less on what his administration planned to rip up and more on what it planned to create listen my administration is working every day to lift the burdens on our companies and on our workers so that you can thrive, compete and grow at the very center of that plan is a giant, beautiful, massive the biggest ever in our country tax cut. Another applause line came when he talked about Small Business tax cuts. The majority of manufacturers in this group are Small Businesses or pass throughs they pay workers more than the average u. S. Employee. They also pay heavily on regulations that they need to comply with. Even so, this group in a survey released, the majority said if they got comprehensive tax reform, they would hire more, pay the workers more, they would grow and expand faster and they would spend more on capital. That being said, theres not everything across the board that this group likes the Tax Blueprint released this week does remove a key deduction for the industry it also only treats favorably shortterm capital expensing even so, this group says theres enough to like its better than the status quo. Now its up to congress to enact it back to you. Thank you very much from jobs to taxes the white house and the Republican Leadership rolling out their tax plans this week. The question now is, who gets the tax cut . Robert frank has been hard at work trying to figure it all out. Who wins, who loses . The president saying that this is a middle class tax cut by definition, any massive, giant, beautiful tax cut will benefit the wealthy because they pay most of the taxes. Lets look at the numbers. The top 1 earns 25 of the income and they pay 40 of federal income tax the bottom 50 of americans pay less than 3 put another way, the top 1 of earners pay more than the bottom 90 of all americans a lot of americans dont pay any taxes. Most recent period, 44 of americans paid no federal income tax. They paid payroll taxes but dont owe additional taxes a lot are too low or because the preferences and deductions in the tax code wipe out their tax bill the wealthy not only pay more because they earn more, they pay a higher rate on what they earn. Look at the tax rates that people pay this is known as the effective rate the middle class pay an average effective rate of about 2. 6 the top pays a rate of 15 the top 1 pays an average of effective rate of 34 . Thats the highest rate in nearly 20 years. There are ways to cut taxes for the middle class through things like the earned income tax credit when you cut taxes, unless its very targeted, those gains by nature because of the numbers are going to go to those who pay them when you just cited that number, 34 for the top 1 , thats their effective rate. Does that mean that when you put all the tax the federal tax together, including payroll tax, that their overall rate is 34 or that their last dollar rate is 34 thats the marginal tax rate. At the margin let me ask question number two you showed 44 of people pay zero income tax. By raising the standard deduction, doubling it, what is how is that number going to be affected its going to go up. Its going to go up my guess is Something Like twothirds will go up. It will go up as high as twothirds will pay no even if you start eliminating state and local Tax Deductions if they start messing with other deductions, if they cap the mortgage deduction, anything with retirement plans, then that number could come down maybe in the 40s and 50s. Garys point was most americans, vast majority, north of 70 , dont take any deductions right its about a third. The question were going to get answers to today later on is a lot of what they proposed are parts of the tax code that benefit the wealthy. Amt, estate tax, cutting the top rate and passthrough income, all of those measures are primarily benefitting the top. You have not only got an issue where the top pays the most, but you have the fact that what they proposed are things that really affect the top taxpayers the most robert, thank you fantastic. Lets get to jackie. Oh, yeah. Good afternoon. U. S. Drillers added six oil rigs last week according to baker hughes that brings the total up to 750. Put this in perspective. This is the first week of additions since mid august and total rigs have decreased for two months in a row. That was bullish that sent oil prices into positive territory for a moment september seeing the biggest decline since may of 2016. Some are going to wonder if this is a trend 50 oil makes it more attractive to deal. Are we going to see more rigs come back online thank you one of americas most quintessential brands trying to rev up a rebound harleydavidson out with new models we have them here at cbnc headquarters along with the ceo. His plan for the business is taking on the president on taxes, trade and a whole lot more coming up its a u. S. Versus the world when it comes to market returns. Te loigns supreme weaka ok thats next. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back to power lunch. We are checking out shares of valiant after the company says it closed the sale of its inova business it will use the proceeds to pay down debt. Saying that it is on track to close the Skin Care Business they say they expect to exceed their commitment made in august 2016 of paying down more than 5 billion in debt before february 2018 making progress on that all important debt paydown of 5 on that thank you very much lets take a look now at that on valeant. Whats interesting is this turnaround story we know the Business Model changed. Thats what caused it to go from 200 down to where it is today. If you believe that this turnaround is happening, which this shows it is, you are having some progress, then valeant is a buy. For me, i would look at it i would like to see momentum breaking through 14. 60 or so theyre clearly on track to turn this company around. Whether or not its a longterm hold like tim seymore thinks oneyear hold thats a long time. Slow money. We will talk back with you in a little bit were closing out the trading for the month and Third Quarter today. The u. S. Stock market having a quite good year. The s p 500 up 12 so far in 2017 check out the rest of the world. Some of it doing better. Brazil with all their political turmoil, up 23 . India growing economy there up 17 . South korea, 18 higher. Look at argentina, up more than 50 . The massive rally in the Third Quarter, will it continue into the fourth . Gentlemen, good to have you with us scott, i will tick okick off wi. We get the whiff of some sort of tax cut. Does that get you more bullish would you rather go elsewhere internationally . You know, we have been in the pull back camp late in the year. The s p 500 is probably its 100 points higher than where we thought the high would be, which was toward the middle point of the year its done better than what we thought. I would argue probably just the last 25 points of the move up has been tied to optimism over this tax situation based on that we dont have a lot of faith that were going to see a meaningful tax cut thats really going to push ahead an 18 trillion economy any time soon barring that, it looks to us like emerging markets, developed markets, they both have if you looke ed at the emerging mat they have more up side not a lot more but more up side between now and the end of 2018. Than u. S. Large mid or small caps. 25 point tax cut premium. Would you agree with that . Is that embedded in the market is anything embedded in the markets . I dont think so. I think the tax cut, the final version that were going to see is certainly not the version we are looking at right now were debating whether or not the state and local taxes are going to remain in there i think what you are seeing behind the scenes are the underlying fundamentals of an economic recovery of the 45 economies, followed by the oecd. 100 are growing since the Global Financial crisis. 75 of those are accelerating. I think the underlying picture here of this global growth, thats really whats driving things thats whats keeping the market moving higher. Its why we expect the market to continue to move higher into year end that is providing a little tailwind for higher rates across the globe. Scott, its brian im curious, you were talking about emerging markets doing well into the end of the year. Lets look to 2018 we have potentially a stronger dollar, maybe money is coming back here to the u. S what is your outlook going into next year if im trying to have a portfolio getting ready for 2018 on emerging marketing versus developed markets brian, remember, we think were going to have pull back over the course of the next four months or so lets say 4 to 6 . Going into year end 18, which we have our year end 18 targets out there, from the point were at right now, all in, emerging markets, maybe you are looking at lets call it a 3 to 5 return, maybe towards the lower end of that range. Probably somewhat similar if you look at the efa index or Something Like that. Our work the bottom line is, net, net from where we are right now, through year end 2018, i think we are going to see volatilely, more than the last year the net gains from here to the end of 2018 i think are likely minimal. Jim, growth or value if i want incremental return right now . Tyler, great question value is the place to be most of our portfolios we are rotating into more valuable names. Financials making up a big part of that. Its a reflection of our view relative value trading, trading within the market is where were going to see added return over the next 12 to 18 months as opposed to more directional themes or cross asset themes were looking at regions like japan and europe then within the u. S. , to your point, we do like the value versus growth. We like financials relative to the technology sector. Scott, how do you make your portfolio more defensive going into year end if you believe in a pull back . I dont think you want to be defensive. We dont want our clients to be defensive. We dont want them to play it. If we get that, thats a buying opportunity. We dont think the cycle is over we want to be overweight industrial, financial, health care, Consumer Discretionary we need fiscal push to get us out. Were in the eighth inning maybe theres one out in this cycle. Theres baseball to be played. We need fiscal help out of washington every day that tick bis by, your closer to the next recession i dont see that through 2018. Were not going to grow more than 2 this year, next year i would be shocked if we grew more than 2. 5 in 2019 if i had to guess the economy is not accelerating. International economies are doing better theyre excaccelerating a little bit. Is the magnitude enough to justify valuations where they are right now n not in our book. Thanks. The battle for bitcoin the currency making headlines today. Whe tei ionwill wghn erhehinks that may head. Thats next. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement Insurance Plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. 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The deal calls for the 15yearold to avoid prison time in order to receive treatment for Mental Illness a woman charged with leaking u. S. Secrets is requesting bond again. The 25yearold reality winter arriving in federal court. Her attorneys say no new charges have been added as soon as she was charged in june. On a lighter note, attention coffee lovers. Today is National Coffee day some places are offering deals that will perk you up. Krispy kreme and Dunkin Donuts and wawa are offering promotions for free coffee. Thank you busy day for bitcoin investors. The battle continues reuters saying the market is a live and well in china despite the recent crack down. South korea will step up inspections and has banned initial coin offers. Japan issuing operating licenses imf director saying today, i think it may not be wiese to dismiss Virtual Currency this is a different stance from what we have heard from jamie diamond. For sure. What you are starting to see is people that are in power, people established within Financial System wrestle with this technological change this is a disruptive technology. It will change everything about Financial Services all that bitcoin and blockchain is, its a Software Program that removed the middle man from Financial Services people that are in charge of Financial Services saying this is not good for me the people that maybe are not so much in charge and looking at a broader picture saying, dont dismiss this im on the side of dont dismiss this this is a phenomenon not going away what happens to the chinese Bitcoin Trading that happened . I read a stat that now about 50 of all volume is traded in january pa yeah. The bitcoin yen cross. Thats happened since the first of year where you saw last year china was 90 of the volume this year, japan is about 50 , china is down to less than 10 actually, nonexistent and south korea picked up. Thats where the volume is going. In japan, they have friendly bitcoin rules. Registered exchanges they have a culture that likes to trade currency. One of the largest foreign currency traders in the world. Its a great place to trade bitco bitcoin. Coming up, you are looking at harleys new line of motorcycles. Thats right. Whats more all american than a harley we will introduce you to the fat boy, fat bob and low rider im not talking about myself new harleys coming up right after this i think its terrific. Your kids go to college and you start trading. Yeah, 5 years already. 5 years, hmm. You ever call your broker for help . Once, when volatility spiked. And . By the time they got me an answer, it was too late. Td ameritrades elite service team can handle your toughest questions right away with volatility, its all about your risk distribution. Good to know. Thanks, mike. We got your back kate. Does he do that all the time . Oh yeah, sometimes he pops out of the couch. Help from real traders. Only with td ameritrade. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Welcome back, everyone im sue herera you may know that earlier this morning lawyers for equifax were in front of the house of representatives. The lawyers told those members of the house of representatives that the companys board of directors has formed a special committee to review the stock trades made by some executives that occurred after the data breach in equifax and before that was revealed to the public. The lawyer going on to say they are not only going to take a look at those stock sales, but they are exploring and weighing cl clawbacks. They are likely to clawback executive compensation according to a source quoted on dow jones. They are looking at the trades which occurred after the data breach they are taking a look at clawing back tyler, back out to you. Sue, welcome to the outside its beautiful out here. Great day fantastic it has been a bit of a tough year for investors in harleydavidson. The stock down over 16 this year with the president s push to rev up manufacturing in america and boost Economic Growth, there could be a rebound just around the corner some of the new models we will look at right here are going to hopefully drive it for harleydavidson and its ceo. Matt, welcome. Good to have you with us lets talk first about the new models and why this is such an important model year for you more new stuff coming out maybe than ever before in your 115year history yeah. High impact product is the foundation of what we love to do as riders, which is a great ride these new soft tails, two examples of eight new models, new ground up, new frame, motor, all the body work and running gear, fantastic part of just firing up the existing rider base and inspirie ining a new generation. This is the fat boy this is the fat bob. Im going to take this personally whats the difference between these two and what would they retail for essentially there are differences technically. They all have a specific personality. It has to make a difference in the mind of a specific rider looking for a specific purpose this is more about boulevard cruising this is more about canyon carving. Its a lot of functionality differences. Thats the personality, to the soul of a rider. High teens for this one high teens. Low 20s yes. You own this . I bought this one week ago. Im here with you all in new jersey rather than riding it. Give us an idea of the harley buyer these days, split between men and women and also whether or not most of your sales are to existing harley owners. We actually in 2010 really got serious with what we call outreach, speaking more powerfully to women, africanamericans, hispanics, 35 and up and young adults. All gender, ethnicity here in the United States. We have shifted the mix of our sales from 34 to those outreach groups to 40 . We feel very good about our efforts to speak differently to different types of people that arent yet riding and inspire that next generation to join in, which is the core of our strategy for the next d. Ecade. You are in a quiet period ahead of earnings coming out the sales challenge remains. Doesnt it yeah. You are trying to the stock challenge remains as we pointed out there. You are trying to reach a younger customer arent you youth is part of it really, what were really talking about is anyone of any generation or age or ethnicity or gender who has that certain zest for life, adventurous spirit, freedom and strength, independence, individuality. Our history as a company for 115 years has demonstrated that there are people of that character of every age across every generation and literally around the world so thats what were really going after is those people that have that certain sense of spirit and adventure. People who have a zest for life they tend to shop online even for big ticket items like this how are you addressing that in. Motor vehicles have a specific construct around online versus brick and mortar. Our dealer primary assets its not just about buying the bike its about the community of riders and the local dealty being t dealer being the epicenter the Younger Generation are looking to connect the Dealer Network is actually an advantage for us as we look to grow with future generations. Im feeling overdressed for this i know. You are ready for it. Dont you have a leather vest under that i left my leather at home lets talk about the president and his drive to create manufacturing jobs in the United States you are based in wisconsin proudly. If theres a more American Company than yours, i cant name it you have decided that you are going to build a factory overseas correct talk to me about that drive to create American Manufacturing jobs and the need also to locate in foreign markets closer to those markets. One of our core five objectives is to grow our International Sales to be more than half of our total sales over the next ten years. Markets like asia are strong for motorcycles. Those where our biggest opportunity is for growth. The trade situation with many of those countries makes it very prohibitive for us to be competitive. Our investment in thailand isnt about capacity its about Market Access its about the ability to have our great products available to more consumers in those markets so that we can grow faster and make sure that were in the relevant choice set of all the Premium Brands of motorcycles that are there. Do you sell the right motorcycles for those markets . Usually theyre small sgler. This motorcycle is great for a variety of frame size. Im very tall. Everything we do is all about how do we reach those customers physically, financially and if you will spiritually matt, thank you you want to drive this off i do. I swear by wearing a helmet otherwise, i would be out of here thank you so much for being here congratulations on 115 years of good work. Betting on tech Fourth Quarter trends and the stocks that are expected to lead the way. That straight ahead. First to rick for todays bond report. Yes another solid week if its defined by higher rates. Short end like two and three are up two basis points. On the week, twos are up four. 30 year the other end of the curve, its down two basis points but up seven on the week. A curve flattening today its more about getting even it has been a steepening week. If you look at tens, you could see thats up a couple on the day, up seven on the week. The most fascinating chart, june 1 chart for high yield and the s p 500 since june, looked pretty good. Its calm even though rates are going up thats positive for stocks and slightly higher rates ahead. Power lunch will return in two minutes. Welcome back the tech sector coming off another Strong Performance notiin the Third Quarter. Whats ahead for quarter four . Josh lipton live in San Francisco will tell us what to expect. Thats right. The tech sector of the s p 500 is on track to finish the quarter in the green with a grain of 8 . That means the sector has enjoyed five straight quarters of gains its up more than 40 since the Second Quarter of 2016 that was the last time the sector finished negative for a quarter. Tech bulls do have history on their side cfra Scott Kessler points out it has risen 6. 4 in q4 that means tech is typically the biggest gainer in the final quarter of the year. It does so with strong frequency, rising 78 of the time there have been recent signs of doubt creeping in. Especially with more notable names in tech. Apple, for example, is down 6 this month thats following those mixed reviews of the new iphone 8 line its up more than 30 for the year amazon and facebook also under performed this month alphabet in line there are facing a common risk, increasing political pressure, he says, from both sides of the political aisle and the threat of new regulatory change both here and abroad that could impact their businesses. Back to you. Josh, thank you which trends and stocks are the ones you need to watch in the Fourth Quarter lets bring in gene. Great to see you again i am going to kick it off with apple. Thats not only a very widely held stock but its a linchpin you called for a correction or pullback in apple. Not a correction but a pullback. Were around that level right now for the month. Im wondering if you think its time to be in apple. I think traders should still be aware that this probably fades a little bit here. The reason is that as soon as that iphone x comes out, theres going to be long lines for that. You are going to see some exceptionally long lead times. Quickly, theyre going to be quoting january delivery dates its going to become available late october i think that could be a little pullback longer term, apple is a great story. There are so many reports just recently about apple telling suppliers to slow down their supplies of the x compone components now you are saying we could get the phone actually in our hands closer to january . Well, i think if you are on the spot and near you order it right when it comesout, i thu will get it some where in early november but i think that supply is going to get taken away quickly. Lets say you go a week to order your phone, i think you will get a delivery date in january what does it do to the Holiday Season i would imagine if you want to get to the 10th to somebody, you are not going to put a note saying it is come in january it takes the surprise out of the whole thing. Yeah. And people probably i think that theyre not going to lose a lot of sales because at the end of the day, this is the first major shipment this is the second biggest hardware change. Yes, they may lose some of those holiday sales but theyll quickly recapture those in the march quarter. That does mean though numbers can get moved around for analysts from december to march on availability. James, tesla is one of them thats some what cautious on whats the story going into the end of the year . I am optimistic on tesla. The story here is there is two kind of x factors. One is investors, stocks on 12 last month based on concerns of what this ramp of the model there will look like the marble three is the check mate of this equation and the value on it, this car will sell exceptionally well we have the semi ecvent coming out on september 26th. Tesla is doing all the right thing. We are optimistic about that gene munster. Thank you. The stocks to watch today the stocks to watch today power lunch returns in we enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. [vo] quickbooks introduces he teaches lessons to stanley. And thats kind of it right now. But rodney knew just what to do. He got quickbooks. It organizes all his accounts, so he knows where he stands in an instant. Ahhh. Thats a profit. Which gave him the idea to spend a little cash on some brilliant marketing ha, clever. Wow, look at all these new students way to grow, rodney know where you stand instantly. Visit quickbooks. Com. Welcome back to power lunch. We are here of what we call today kellys corner. Pulte dprgroup is at a tenyear high you still have a shortage of home thats the issue you start to see home sales going down it is not because fewer people are buying homes, it is just that there is fewer homes for people to buy. As long as Interest Rates stay, lets call it transport meantime is hitting an all time high today absolutely. Separating out from the transports and airlines. You are looking at fedex doing well and theyre raising raise next year. Assuming we are getting some kind of higher economy why do you think airlines have been under performing it is capacity. The biggest thing that the airlines did right was they cut back on capacity in the last six months or so, you have seen them increase capacity and everybody is concerned. Oh, are they going down that path again what a prediction over stock. Com, not have people know, this is under the radar for bit coin it is what the past they did was essentially selling it now, theyre holding the 50 bit coin that they receive as payments the second thing they are doing, they have a sec Compliant Exchange now, you can issue equity as currency if you a company at llc, you can go public over over Stock Exchange do you own this i do own quite a bit. Ryan, thanks so much for spending the time with us. Dont go anywhere, the first News Analysis on the gop tax plan is set to drop. Whos going to pay and what and as is it going to work the second power lunch begins three minutes away theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. Like any Medicare Supplement Insurance Plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. You could stay with the doctor or specialist you trust. Or go with someone new. Youre not stuck in a network. Because there arent any. So dont wait. Call now to request your free decision guide and find the aarp Medicare Supplement plan that works for you. Theres a range to choose from, depending on your needs and your budget. Rates are competitive. And theyre the only plans of their kind endorsed by aarp. Like any of these types of plans, they let you apply whenever you want. Theres no enrollment window. No waiting to apply. So call now. Remember, Medicare Supplement plans help cover some of what medicare doesnt pay. Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Duck quack call to request your free decision guide now. Because the time to think about tomorrow is today. Now analysis out at this hour the gop plan, who wins and who loses. Ylan mui has been digging in the numbers and she skroijoins us nw the numbers that are out just do not back that up. The tax policy scecenter found e bottom 95 will get a 1. 2 bump in their incomes or smaller. The top 1 , thats people making more than 730,000 theyll get half the total benefit of this benefit tax packet according to the tcc. Businesses will get a 2. 6 trillion cut over the decade households on the other side, they see a 470 billion increase, yes, increase, thats one of the unexpected wrinkles of this analysis all incomes would see their taxes go up or decades, more than a quarter of the middle class but mainly people making between 150,000 or 350,000 a year they would get hit. 60 of them will see their taxes rise by a rough average of 4,000 only 3 of the richest americans would face a tax increase. Now, why is all of this happening . There is three reasons. Gop tax plan gets rid of personal exemptions. Tax plan relies on tax credit that are not index to inflation like the childs tax credit. The benefit of the tax credit diminishes overtime. Chain cpi rather than regular cpi, i know it sounds super wonki, chain cpi grows more slowly so you get something called bracket creep you are moving to a higher tax bracket. We have to give you all caveat in this analysis as well the tax plan is still missing a lot of details so this does make a lot of assumptions and uses the income levels that we are in the original house blueprint for example and it does not factor in Economic Growth republicans say it is critical to makiing all of these numbers work this report does show the wealthy are the big winners in the tax plan and it is going to make it a lot harder for republicans to sell this plan as ahmad l cla a middle class relief. Back every to you, guys. Ylan, thank you very much what will the white house have to do to sell its tax reform plan joining us now, msnbc political hugh hewitt and hes also the host of the hugh hugh hewitts show. I spoke with pat toomey this week, each one of them said if you are above 250,000, you are going to pay more. Above that, dont expect the tax break. The sub chapter passed through is going to be cabin by details of the course of this. And we have to win this is the bottom line, the republicans must put some points on the board that means i believe that the house will pass a bill in our cover, the senate will pass a bill i expect donald trump to sign it on new years eve. I dont think any particular analysis is going to be a problem. Ylan, just said the wealthies are the biggest winners. How is this going to be framed before the public that the bottom 95 get only a 1. 2 increase or above income i know it is going to be framed and i am going to frame it if you keep on calling me mr. Hewitt, you got to call me h hewitt what senator toomey emphasize that transition of the plan has not been agreed to and there is rules to limit that. For example, maybe you may have had to be a Sub Chapter S Corporation for a number of years prior to this bill passing in order to benefit from it. They realize if it becomes a hedge fund giveaway. It is a disaster theyre going to keep themselves on defense, i still think we have a tax go. Thats the fine prints by december so john, let me turn to one of the numbers that i believe i heard correctly in ylans report that corporations would benefit to the tune of 2. 6 trillion over ten years and households would not benefit, they would actually pay more by 400 billion that feels to me like a package in a bow for the democrats well, there are a lot of things that are wrapped up in a bow for the democrats, mr. Matheson please keep talk to me like mr. Matheson and none of this tyler stuff. [ laughter ] we got the issue of top rate. Maybe well go back and adjust that to make the distribution table looking better you got the question as ylan noted in her report of what her income breaks are. A lot of details making it difficult to enact this is going to have problems on the left and on the right with all due respect to hugh, i dont think his new years party is going to be ruined by trumps signature on the tax bill. Not only democrats stand united against this but looking for oppositions like steve bannon pushing for a higher tax break, 44 on the wealthest americans because he thought it is not going to work politically. He lost the argument hes organizing primary challenges and republican senators are going to put a lot of pressure on there and thats going to make it difficult for the republicans to make work in the form that we are talking about now. You do have that mystery bracket, thou though, john. Maybe that plays into what you are talking about. It could. That would be what bannon is hoping to happen i dont think that paul ryan and the house are going to be interested in any plan that goes above 39. 6 on the top rate i think the contemplated additional rate is some where around 37 or 38 to be added on later. But, you know paul ryan rejects this kind of analysis at all i interviewed him last year, distribution table, thats the kind of thing that democrats talk about we dont believe in that we are looking for marginal rates and Economic Growth. It is difficult as the white houses conceded and how they are framing these arguments. The president loves to single out how well the stock markets are doing. He did it today at the mam noted this morning, the s p 500 hit a new record high. At the same time, hes trying to push a message that says corporations and businesses of this country needed tax cut. Is there a disconnect between the two . Can he have it both ways and can he say everything is going great in the stock market and oh by the way are business in the country need so much help . I think he can for a simple reason everyone gets there 401 quarterly. The stock market does matter to people the reason we want businesses to grow is that theyll add more people to the employment rule and they are pretty low on employment and we have to drive it lower and lower and not driven by legislations and supply and demand. I would talk to Kevin Mccartney on my msnbc program tomorrow morning at 8 00 on msnbc, th number one problem politically for the republicans. Number one, is the local Tax Deduction goes away. In the blue state, they got 20 or 30 republican congressmen who are going to shutter at the prospect, dont worry, theyre adding a property Tax Deduction. The real problem is the flight of high in individuals from high stakes wholl put additional pressure to bear on the budget of those states heavily depended on income tax revenue. Thats endangering Credit Ratings and bonds out there. There is a lot of Political Risk here the biggest to the republicans is not to pass a bill. The speaker knows that and the leaders know that. The senate have not gotten anything done. Two quick points here i got to run. The first is that you got a lot of difficulty with the state and local deductions from other people good policy but maybe not good politics. Thank you guys President Trump is sfepeakin earlier saying his tax cut would be rocket fuel force t the econy joining us for more on this, jay timmons and cnbc ron pisani. Yeah, you saw the president this morning, did you . Yeah, he was on fire. Yes, he was on fire you liked what you heard and you like what is in the tax packet this is certainly vast improvement over what we have right now. If we get it done, it is going to lead to investment job creations and we surveyed our manufactures and twothirds of them specifically that if we get this tax plan through. Theyll invest in new plan and equipment and hire new workers 20 rate on corporations and 25 rate on pass ruling income which is a lot of corporations as well. Let me pick up on scotts point just a moment ago. Do american businesses certainly, the big ones represent by the s p needs to be doing well and profits are up and things are looking good. Do they need a tax cut i thought that was a great question here is the context. Many businesses already priced down and i would say those who are in the market right now have priced in these achievements that we hope to gain for manufactures so theyre banking on us and doing whats right for the American People and for the american manufactures. The president talked about a growth rate thats adjusted over a little 3 we think it is great news right now behest pushing for a higher growth rate. A lot of folks say it is not possible and this can make it possible and quite front rangely, we ought to be thinking it makes sense to have a growth rate higher than the average of the carters presidency for crying out loud. You dont believe that it could hit 6 as the president allegedly told groups of democrats and republicans this very week that Economic Growth would hit 6 better than 3 but 6 look, you did not hear that from me, i would love to see that all americans would like to see that all americans want to get back in the game. We are having our economic lunch eaten my our competitors around the world and we are given advantage to other countries because they are improving their tax codes to attract investments and jobs under their shores. Republicans and democrats and i hear it from folks in both parties, they want to win this economic battle for the longterm and not just the short term, comprehensiv comprehensiv is what we need. All the other stuff of tax reform are the key to that ron, jump in here you had some thoughts on that. The president has 550 or so llc and assuming he has paid taxes the last twelve years, we have only seen some indications of what he paid on 2005 which is based on the minimum tax and the repeal of the estate tax so it would save him 1. 4 billi 1. 4 billion in nets worth to pass onto his children anybody wealthy of an llc in some way was discussed before and grandfathered in pick up on jays point which goes to the Corporate Tax matter that is our highest marginal rate which not Many Companies pay. Not even close. Is among the highest or the developed countries and therefore is not competitive and therefore, we have things like in versions. Well, yes and no. If we are truly going to engage comprehensive tax reform that flattens the tax and gotten rid of all deductions. You would be talking something significant of what we saw in 1986 thats not these plans these are rate cuts. Corporations are flushed with cheap capitols and so i am not sure that we get to 3 because the feds are going to be taxing the Interest Rates as well. And, if we are at 6 , the feds are going to be jacking up rates so fast that we run the risk of ruini ruining it james, final thought . I will give you the last word. Absolutely. I do want to go back to the study that came out, ill conc a concerned that folks are hyper ventilating now of what they perceive this to be. There is parameters thats been established and gold posts thats been set. It is our job right now, the job of congress to get the job done in a way that make sure that we are competitive and we can add jobs and we can increase investment incentives. The one thing i would say to you is that i hear from so many manufactures across the states that they are paying close to the high Corporate Tax rate we got to get it down. Jay timmons and ron isana. Thank you. Turning to Hurricane Maria listen to what lieutenant Jeff Buchanan says with our Contessa Brewer a short time ago . It is like anatomic bo atomib went off now lets bring in contessa. Reporter well, it is no wonder he thought that he was in harvey and taken some leads there and irma this is so widespread on an island of 3. 5 Million People when he comes in and compares the damage, there is a lot of work to do and thats going to take time. People here have been ten days without Running Water or power and access to cash and food and medicine their pay sentience is running n he has a plan to break up that law jam. They have been air dropping supplies to get pass roads and they had 25 helicopters and next week theyll have 52 helicopters. Theyre trying to source local drivers to put behind the wheels of these delivery trucks to deliver everything from food and water and diesel the restrictions are lifted on how theyre going to deliver these diesels. Theyll put on fuels and carriers and getting them out to gas stations and water pumping stations to make sure generators can be running the army core of engineers is currently working on the electric grid. Theyre trying to get it up and running and the transmission lines have been damaged throughout the island and this was an old system with power lines above the ground which is not what you see in modern cities and many other places at this point, we know that the airport is now connected and we know two major hospitals in town are connected to the grid. Thats likely to improve as well we covered this a lot yesterday and that gridlock at the ports with containers just sitting there and no Truck Drivers to move them. There is a plan in place here is whats going to happen if the companies cannot come up with the fuel, the drivers in the truck to come retrieve those containers, the government will then buy the containers full of these essential supplies and theyll distribute them. I asked the governors, are you coming with these. No, no if that he cannot pick them up, theyll be requested or forced into buying it one more thing, they shorten the curfew now by 2 hours and lifted the liquor restrictions. Thats going to help most people here who wants water in their taps and gas in their fuel tanks and they want food in their bellies. Melissa thank you Contessa Brewer in puerto rico here is whats coming up amazons nfl debut the latest by lightning. Nothing goes better with football and chicken wings but those prices are rising. Well have those stories well ahead. Even though tiger woods are not playing golf he can still sell. Doerl have the impact of tigs enrsement and much more coming up on power lunch. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right financial advisor, life can be brilliant. Ameriprise track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Viewers got to see the packe pack packers beat the bears Julia Boorstin with a look of the game reporter it was off to a rough start. The beginning of the game, users took to twitter to complain about buffering and low resolution streams and our computer, the video dropped out at one point the quality of the scream improved and there were no complaints in the second half amazon took to twitter one factor that may hurt viewer numbers are weather delays the stream straw will be closely scrutini scrutinize amazon spent 15 million to stream thursdays night game now last season, twitter averaged 267,000 viewers at any given minutes during its ten games. 2. 7 Million People tuned in at at least for three seconds those did not require any subscriptions or people logging in it will be interesting to see how the number of last nights game compared. Thank you very much before the game, the packers and the bears linked arms. Steve liesman is joining us now with a new all america survey. We have the full results coming out we want to bring you this one piece we asked about on the nfl. 21 in favor of kneeling we ask the question should nfl owners fire players who sit our kneel during the national ant m anthem 61 say should not be fired and should fire of 27 and 12 not sure how do you get this from here big support by independence and democrats. The republicans are 4739 with the idea, with the president s idea of suspending the players this number is quite reduced for their support for the president overall. Take a look here same support in the northeast and the southeast. You are looking at here of the net support. In other words, players 35 . And a little bit more support among wealthier than compared to lower income and then white. Theyre still in advantage of both of these players. How that plays out in ratings, well see over the next couple of days. Well get the full results on monday and ratings on america. We did that just to be able to compare a little bit more it is manifest you are right to point it out. Perhaps raising question of wlor whether or not or not it is effective graphic. It is more effective now. Always trying to help i appreciate that, my friend. The full survey is out on mop monday, right . I think viewers are good with numbers. Yeah, we dont have the product. There we go steve, thank you. Coming up on power lunch, well introduce you to a little girls leg is saved by a new kind of treatment, modern medicine is coming up next hi everybody, i am sue herrera, here is your cnbc news update at this hour. President trump promoting his tax reform plan in washington. He toll thd them hes working hd to help companies thrive, compete and grow at the center of that plan is a giant, beautiful, massive, the biggest ever in our country tax cut. [ applause ] under my administration, the year of economic surrender is over now guard troops distributing food and water to people in the u. S. Virgin islands today. The governor there says much if not all of that islands infrastructure will have to be rebuilt. The pete roses bat is up for audition the hat worn by Jackie Robinson is also on the blog. It was padded as a defense against possible balls thats the news update at this hour, power lunch is back in twominutes time. Steve liesman reported moments ago of nfl fans divided on the issue of national protest. One thing that all football fans can agree on is that chicken wings are great while watching a game ask the chicken though kate rogers are joining us now. Thats right. Wings prices are going up appetite is out pacing supplies something that has happened four times in the past 25 years the price heights are expected to remain stubborn throughout the season buffalo wings reigning in 60 domestic locations product for bone in and bone less are both fresh and never frozen what it means is they are both commodity. The pricing is changing every week we never know what the price will do every week for both bone bonein and bone less. Buffalo wings will eventually price competitors out of the market they pointed out unlike chicken breasts, it is hard to get more bank for your bucks from suppliers with wings as there is only two of them on the birds and you cannot increase their size with his or her or hormones the knowledge to the table. And the wings are not affected by hormones you cannot fatten them up you cannot fatten the wings i had not thought about it. Thats something to take into the weekend. [ laughter ] i am trying to get over the task force obviously, it is very important. Customers are flocking mcdonalds is up nearly 30 and Buffalo Wild Wings are down nearly 30 lets bring in andrew, it is great to have you with us. Lets address this issue of rising wings prices. In the past, we have seen restaurants going to bone less wings and breasts cutting up littlepieces chicken tenders exactly is this an issue what you are seeing broadly is we saw Buffalo Wild Wings and wing stop is that bone less is higher in nature thats what within the companys control. For the other ones in your universe, what are some of the major drive cost food inflations is not existence at this point. You want to keep an eye and an industry perspective and we are seeing of 4 to 5 it is definitely something to Pay Attention to what does wing stop doing that Buffalo Wild Wings are not you have a buy on wing stop and a hold on buffalo. We think stop, what we like about that one is because it is 98 franchise versing Buffalo Wild Wing operated by half of their store. But, what i would say is wing stop is well positioned in the industry and given they got a digital centric model, 21 of their sales and the highest industry outside panera. Buffalo moving to more of a franchise model that would cost you to be optimistic for the company. I think if they can get rid of the performance store i dont think it is the end all deal spicy and mild and what is your choice . I am a spice guy. I think people in general moving in that direction, i am just throwing out my opinion. Your top pick i would say younger mcdonalds is the ones that we want to Pay Attention we still have a sale on chipotle i think their quality perception are at the trout level i dont think queso is not at the selling rate here. It is one that we should stay away from. Too costly. Well a lot of times we talk about biotech today modern medicine, we bring a little girl whose life is saved by a different kind of Cancer Treatments. My name is caitlin. Reporter you never guess meeting caitlin scantron son what this funkyyearold have been through does my daughter have cancer . Does nobody told you yet . Yes, she does reporter two and a half years of punishing chemo therapy. Another month of chemo therapy fell for two caitlins doctor suggested Clinical Trial called cart the treatment uses the patients own immune cell for patients we were ready to throw the pass for treatments because we had no other option tcells are removed from the body and a virus is used to deliver genetic modifications, theyre then given back to patients this is in that way of a living therapy because the growth of these tcell in patients will allow these serial killers to take out millions of cancer cells the johnsons were warned that side effects can be severe it can cause high fevers and organ failures weeks after caitlin received her tcells, they got a late night call from the doctor she says there is no detectable signs of cancer yeah. And, i think we just cried within six months, our pendulum have gone from we are going to lose our child potentially to we beat cancer. Three years later, caitlin is still cancer free. The medicine she helped test was aprov approved by the fda. Just thinking who you, we are apart of this, you know, to help hundreds and thousands of other kids, you know, and i am always thinking i almost not do this it was the first one approved last month there is a lot more behind it and in this new exciting way of treating cancer and big business, too. Gille so this is the medicine of the moment right now this particular treatment costs a lot of money, does it. This is one of the treatments that raises eye brows. If you look at sticker prices, it is 475,000 but you have to take a step back seeing this is a one time treatment and they have to follow along to see how it goes. If the kids are not responding at 30 days, if the Cancer Treatment is not working, they dont pay how does this work between funding from government sources or trying to fund basic research in the area and private sources that are obviously having a commercial interests it is the partnership of the whole ecosystem. And then companies have come in so they have partnered with pen and there is a lot of Public Private partnerships going on here and the companies are stepping in the end stages and taking it through testings and the real goal is bringing to more types of cancer thats going to be exciting all right, thank you, meg three former president s watching the big gulf tournament this week, another man thats not playing thats also having a big impact thats next, stay with us. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. Medicare doesnt cover everything. And like all standardized Medicare Supplement Insurance Plans, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. Thats not something you see everyday all spectators at the president s cup in new jersey which kicked off yesterday it is the first time that three president s have attended the tournament President Trump is expected to be there as well over the weekend. That was a pretty awesome site yesterday one notable player did not participate in the president s cup is tiger woods bridge stone signed on tigers to a multi Million Dollars deal everyone though tiger is not playing right now. The ceo of bridge stone golf, angel, welcome talk about timing, right signing him and he continues to have various issues, do you regreat si regret signing him now no, not at all. He is positive for the game and bringing a lot of excitement for many players we experienced decline in recent years but with tiger on board is bringing a lot of consumers back to the game and excitement to the game and to bridgestone. I forgot that tiger used to play for bridgestone how do you get awareness that tiger is still using your product . We do that with our advertising and he has more power as an endorser as a player one of the things we like of having tiger woods on board is that hes really a sport golf junkie he wont be playing anything thats not the very best he looks at the process that he selected and changing over from nike over to us was what brought us to him which is the fact that he looked at all the different balls and thought which one played well for him and thats the biggest benefit that you have with bridgestone that we have a wide arrange of ball that fits for you out there can i buy the ball that he plays with or does he have a ball thats especially made for his game you can be i the ball it is called b330 s. Angel, you mentioned that tiger is a powerful endorser than he is a player at this point. At what point does that change how far can you go of him not playing its full form and still be a powerful endorser i think he will always be a powerful endorser. Within golf itself, hes probably, the single golf that had the greatest impact to bring in consumers into it and his reputation is to what products to use and his endorsement value is great hes a Michael Jordan of golf he is definitely the Michael Jordan of golf hes the rinaldo of golf and whether he plays or not, it would not matter it would be to our benefit if he does play with our nice b logo on the side of the ball. How is the industry doing in general right now . I think the industry is a little bit in a panic even though it may not be i come from outside of the industry and golf is a Large Business as your captain just says there but, when you look at it, what we need to do is attract more consumers and more people to the game of golf we cannot rely on the fact that you know with the golf game has slowed down a little bit if you look at before and after tiger, we are up 4 million golfers in that period of time it is notes at its peak we can attract golf. Our responsibility as the caretaker of the industry to bring more golfers i got to let you go how much of a dozen of these costs . 44. 95 or 45 so it is premium. Yeah, well, theyre actually cheaper than the prov one and a lot better balls i got to tell you scott and i play a lot of golf and we lose a lot of balls, we are keeping you in business, okay you can count on us as good drivers of our business. Well, if you use our balls, you wont lose it. Okay. You had m angel, thanks. Take care thank you. In just about an hour, the Third Quarter will end so what is the one thing you need to know, need to do with your portfolio for the Fourth Quarter . Trangatns xtdi nio ine baby crying slow jazz music fly me to the moon and let me play bell ring i cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone Third Quarter is drawing to a close. Lets get q4 picks from the trading nation team, chris, mark chris, lets kick it off with eye, whats looking good going into this new quarter . Is. We want to own banks going into 4q. Very simply when the twoyear yield is rising, financials tend to outperform. Banks have spent much of the year going sideways, were finally starting to see some signs of life here jp morgan especially after spending much of the year in a range from 80 to 95 is starting to break out of that range we think 110, 115 is ultimately the market its rates thats driving this move and we like the group here in 4q. Presumably you think rates are going higher in the Fourth Quarter as well . Whats important is the short end of the curve, not the long end. Twoyear yields that banks are most influenced by, so the twoyear yield going higher is good for bank stocks. Mike, your pick for Fourth Quarter . Yeah, i have a couple of stocks i really like going to the Fourth Quarter, darden restaurants, operator of olive garden, longhorn steakhouse, several other smaller brands theres been a big pullback in the stock i think its an extreme overreaction report of last quarters earnings and comps were half a percent off expectations no big deal. Still outperforming their pieers we think its going be 10 Earnings Growth going into next year a company that executes like this, its way too cheap, so buy darden the second name is a Company Called air lease their Business Model works like this, they borrow money, buy airplanes then lease those airplanes to the commercial airlines this company has been a great company, they constantly lower their cost of funding, have a young, efficient fleet of airplanes. Theyre expected to grow 17 , 18 next year. The management does nothing but beat quarters. At ten times earnings, its way too cheap. A buy right now. All right got to go, buy guys. Thanks a lot, chris and mike find more at tradingnation. Cnbc. Com. Check please is next. Now the latest from tradingnation. Cnbc. 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Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. Check please that flash there, jerome powell, also being spoken to about the fed job. Mr. Warsh certainly in the running there. We began these two hours by looking at some heartbreaking footage from puerto rico and i was struck above all by Lieutenant General whos in charge of the recovery relief efforts down there saying that to him, this looked like an atomic bomb had gone off you, scott, concluded your hour on halftime by saying keep these folks in your thought this weekend. That is really true. Absolutely. What im looking at is equifax, dow jones is reporting the board is considering clawing back executive compensation this, of course, ahead of equifaxs former ceo Richard Smith going to capitol hill next week to testify about that massive data breach. The Company Seems to be doing a lot of what other companies have been in the cross hairs have done in response to scandal, but ahead of them being pressured into doing them such as ousting the ceo, giving consumers free credit freezes for life, as well as this. Well see how this all plays out on the hill next week. Good quarter for stocks this the final day we did an exclusive survey for the halftime report, asked all of wall streets top strategists, 79 think stocks go higher from here, 0 think stocks are cheap, though thats the conundrum. Thats the conundrum. Fear tof missing out rally. Stocks are going up, where do i find value, though, now . Its hard. The prices where they are, but its been a good quarter and good year so far the Fourth Quarter generally, seasonally, october can be a rough month. Pretty good. Eighth positive quarter in a row for the dow. Wow all right. Good to you with us. Thanks for having any. Have a good weekend, guys. Thanks for watching power. This is nice nice. Little different. Ill take that. Its friday well fake it. Welcome to the closing bell, everybody, im kelly evans at the new york Stock Exchange. That would make me Bill Griffeth this is the time hofinal hour o trading day for the month for the Third Quarter. Later than its ever been. Were going to tell you which sectors have performed best and get you ready for the last quarter of 2017. Always a fun to run through those stats and pretty telling this time, too now chinas shanghai composite has struggled for the month of september as