Transcripts For CNBC Power Lunch 20171208

Evacuate power lunch starts right now for everybody in Southern California, its been a tough couple of days thinking of you guys the jobs data getting a bump to the bottom line. The nasdaq the bigger winner crude oil had been up 2 before it pulled back the rig counts, by the way, are out any minute now health care related. Alexon and celgene and mylan up as well. Another hot stock today, Sage Therapeutics this is on top of yesterdays 70 gain and the ceo will join us in just a couple of moments and steve, no shortage of stuff to talk about today. No. Very excited, brian. Especially with the jobs report. Lets get to it. Its getting to be routine economists say it should slow because of the population growth, theyre right about that part but the job market keeps surprising to the upside nonfarm payrolls up against an estimate of 195,000. October, september revisions not up much. Hourly average wages up just 0. 2 . And the Participation Rate also at 62. 7 Goldman Sachs saying despite the softer than expected wage growth data, the november employment report was encouraging on balance and suggests the labor market continues s ts to tightn heres where the jobs were education and health services, thats always at the top 54,000 manufacturing up strong, 31,000. Construction as well up 24,000 leisure and hospitality up 14,000 i have information down 4,000 to show you its hard to find an industry where jobs fell which also says that growth was broad based. I want to look into Holiday Hiring sectors if the numbers are stronger, it could assign the business sales. We added up retail, trade, transportation and temporary help they are up over 100,000 more than we had this time last year if you combine october and november especially strength in the Retail Sector up 594,000 ppz in any event, the Business Owners who do the hiring for the sales are hiring more people so those are not seasonally adjusted numbers so they tell us theres some confidence that the shoppers are going to be there for it and what is all new for the fed i think at the end of the day what it means is the fed is probably on track to hike in december heres my question. Manufacturing jobs growing number like to see that, right . Will we see wage growth because of a tightening job market or will a tight job market as you guys talked about on squawk box this morning force employers to replace people with machines will we see wage growth . Or will we see more robots i think a little bit of both. I think you get to a point were going to pay the robots more just give them Better Health care no, i think whats new about Technology Today and what i think economists and policy makers and people are trying to understand is there used to be a thing call it a jackhammer i think youre familiar with that think of some other job you had that you used a jackhammer, sully. A jackhammer helped a Road Construction person do more road a robot replaces a worker. Okay so theres a difference in what the technology does. So were trying to come to terms. What that means to me is theres a point at which you will raise wages for people and you get to that point and all of a sudden it becomes better to get a machine to do the job. That to me doesnt mean we wont get raises i think it caps some what jobs will pay and also if you do Cross Country studies of machines, the real story is that we do not have enough ma shechines in america. Machine shortage. Relative to japan, were less robotized. Is that a word is japan what we want to use . Five recessions in 25 years . A workforce thats depressed it is not, but when you look around the world for upper limits of robotization they have one chef to make sure all the robots work the government is funded at least two more weeks tax reform on the front burner eamon javers has all that for us hi, melissa a lot going on at the white house as always. The president signed that continuing resolution early this morning. That means no Government Shutdown until december 22nd when they fight this political fight all over again but a twoweek reprieve on that one. Also the president tweeting today about wells fargo as you also mentioned hes pushing back on some reporting this morning that suggests the cfpb might hold off on some fines against wells fargo. Saying fines and penalties against Wells Fargo Bank for their bad acts against customers and others will not be dropped as has incorrectly been reported and will be pursued and if anything substantially increased. I will cut regs, regulations another company thats been talked about here is amazon. Leon cooperman saying he had a conversation with the president this summer in which the president asked him if he thought that amazon was a monopoly gary cohn was on cnbc today asked about that heres what he said. I think the president is curious about lots of different businesses and whats going on economically, whats going on competitively in the United States the president is very inquisitive about lots of things hes always asking provocative questions. So the white house calling it provocative questioning there. Not clear whats on the president s mind when it comes to amazon. The white house wont say anything else about it other than what gary cohn cede today real quick, they are also working on the state and local Tax Deductions thats an unresolved issue on the tax hike theyre trying to find some pay fors in order to reduce some deductions into the process. Not clear where all that is going to land. All right thank you very much. The question is, what does all this stuff mean for the market lets bring in cnbc contributors the economy is unambiguously good and the good news is some of the gains we saw is moving into the midwest from a monetary perspective, the dow up 24 in 12 months do you believe the market has priced in all this good news i think its reflective of everything thats happened weve got decent domestic growth labor market is at or near full employment and the fed is likely to raise rates more tax reform i would argue and i will argue in a piece upcoming is maybe contractuary. They g l get a tax hike, not a tax cut. So im not sure its going to be all that stimlative. But the Global Economy is the biggest piece thats drive iing. Hold on let me change my hat but ron is on the individual side of the equation but we have this massive potential Corporate Tax rate can we still say its contractionary i think its mildly stimulative. And mildly to a little bit more st stimulative on the other side. One thing looking at right now is the idea that like things are treated differently. Theres a whole new craziness in there. So i think one of the reasons why the tax cut isnt more fully priced in is to begin with, markets are terrible at pricing in Political Developments to begin with i think theyre also having a hard time. Because i have no doubt what ron said is true but parsing out what this means on the individual side and corporate side is very difficult. Its a push pull in terms of the tax reform what we saw in yesterdays action was the infrastructure plan would be unveiled in january. We saw that spike in the 10year yield. We saw a lot of the infrastructure stocks, they all popped on the back of that notion are we at a point now where that will be extra fuel to this rally that we are even if its not going to be fueled by stax, necessarily . I think no question it would be a lot of extra fuel i dont know how it gets passed exactly in this current environment in washington. But that would give you a lot of extra fuel one of the things that weve been talking about and steve has been talking about is basically that workforce productivity. And what gets the productivity and the labor force up and you get a big infrastructure spend like that, you get numbers higher yeah that would be stimulative, no question but i think steves point is a good point as you have greater demand and its not necessarily being met by the workforce, you start paying a certain price for your labor. All of a sudden its cheaper to replace it with a machine. One of the things i watch is the average hourly hours worked in a week and the average gains in those hours, wages paid. Theyre going the wrong way, really i think the machines might be the answer, ron. Michael, i want to go into the way back machine here and think back though last time we did tax le form, 1986. My fear about this tax bill is not that components are bad. But that the change is so dramatic that it causes what we call Productive Resources in the economy to idle. And i think by my friend Perry Winston who owns a music rental business in jersey and he said the trouble is that everybody is 100 leveraged to the Current System so its not what the actual change is, but the fact of change itself that what happened in the wake of 86 was a lot of real estate assets became unproductive and a major real estate issue because of that. I had din we are a major accountant the other night and hes not concerned that his job is going away. Because were simplifying the tax code far from it. Its going to be even more complex in some ways than it currently is you could probably leave it alone and get the same result economically and from a jobs perspective. I said it was the most complicated simplification i think its a horrible piece of legislation if youre trying were not here to debate the tax bill were here to figure out what the markets are going to do in the framework of the tax bill of the fed and of the strong jobs bill i think its going to have a lot of unintended consequences if the Global Economy continues to grow you have reasons to be optimistic about the bull market continuing in stocks and big name, big cap stocks would probably do quite well yeah, but to steves point, when these things pass, theres a shift. There are always those loopholes and it goes to your point of the unintended consequence people who are going to read this bill if it comes out and if it looks like were going to get a law passed everybody shifts around to figure out how i need to receive my income. If im an llc, can i still say as an llc or do i have to become a limited structure for my business would be a current loop around a loophole. But it does create a shuift in money. People will figure it out. The clients ive been talking to are saying tell me what this bill is going to look like do i have to move to florida people will shift. I think rons on point yeah. Michael and ron, good stuff. I think we can all quote the counting crows, its been a long december but theres reason to believe maybe this year will be better than the last thank you very much. How about that . Cant remember the last thing that you said while you were talking leaving days go by so fast youre welcome the first Bitcoin Futures market goes live on sunday and bitcoin is falling ahead of that but futures help legitimatize bitcoins in the minds of the doubters bob pisani has the answer to that question. Well, steve, it may not make it more respectable, but its a step toward and certainly a big step towards more regulation and more transparency. And thats why this is a good thing overall. Folks have been getting a lot of questions here let me answer a few here whats the contracts look like its going to start trading sunday late in the afternoon theres going to be three monthly contracts. Likely january, february, march. The prices will be close to the cash prices for bitcoin over the weekend here it will be cash settled. Thats the most important thing about this its not settled in bitcoin. You just go in and trade it in dollars and you can short it, of course, in dollars all the questions ive been getting, whos the sellers we dont know. But people who want to hedge who are long bitcoin against them. We dont know if the institutional traders will get involved yesterday the Market Makers havent been announced. How many firms will participate . We dont know but jpmorgan has already said theyre not going to allow their clients to trade initially. Goldman will with select clients. And some 06 the smaller guys, theyre not allowing it at least in the beginning theyll take a wait and see attitude how about the big question volatility we dont know. Historically you bring in a contract with commodities, it tends to dampen down the volatility but this could be a different animal well have to wait and see about the regulation, remember something. Were regulating a futures market here. But the coin market is unregulated. Thats one of the problems the s. E. C. Has had with this why theyre not allowing bitcoin etfs yet and intermediaries are a gray area let me just Say Something about the market were sitting near new highs right now. Weve got a bunch of sectors doing nicely you take a look here, retail, telecom, health care all doing nicely consumers are lagging a bit. I want to show you the s p because 2647 was the old closing high as i recall on the s p and right now were at 2649. If we close here, weve got another new record close guys, back to you. Bob, thanks very much weekly counts just out jackie de an lis is at the commodity desk the total now 751 thats up 253 from a year ago. Its the third week in a row that u. S. Drillers are adding rigs with the price close to 60 a barrel but crude is still on track for a weekly loss. Thats because u. S. Production numbers now 9. 7 billion barrels a day. Pumping more that seems to be the trend here at least in the United States. All right thank you, jackie. Sage therapeutic shares higher once again today after optimism on a drug to treat depression well get a live report from california on the fires burning l aelnd now san diego areas. Power lunch will be right back take a check of the markets right now. Higher across the board. Boeing leading the way hitting another alltime high today. United health and home depot adding to gains. Michael kors, l brands, and foot locker all higher. And check on Bitcoin Bitcoin is down 1600 or so. 14,930. Thats on the bitstamp on the coinbase it is 15,400. Stay with us thats aeps road to the future. And the International Brotherhood of electrical workers helped make that happen. Th Outstanding Union professionals have the skills and training to get the job done right. Thats good for our customers and for our bottom line. Ibew members are our power professionals. They should be yours as well. 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. Sage therapeutics higher once again after yesterdays huge jump. The stock has nearly doubled this week alone. Well speak to the companys ceo in a minute but first lets speak to meg tirrell sage reported results yesterday from a midstage Clinical Trial of the medicine the study in 89 patients showed it significantly reduced zpregs scores it started working quickly and helped more than 60 of patients reach remission versus 23 who didnt get the drug. Here to tell us more is jeff jonas, the ceo of Sage Therapeutics thanks for being here. Thanks for having me. Tell me what this means for patients what does it mean in somebodys life whos dealing with depression these were very dramatic reductions in patients depression what we saw in the study was the reduction to such a degree that twothirds of the patients achieved remission by two weeks. Im a physician. I trained as a psychopharmacologist ive done this more than 25 years. I dont think ive ever seen data this dramatic in a midstage trial. So the hope for this is a rapidly acting drug that gets patients better where you can tell theyre Getting Better within a day or two and then you see a remission of nearly twothirds when you say remission in depression, what does that mean . What is so striking is that you saw results, 15 days was the marker compared to a lot of other depression treatments right now which take months to really take effect what happens beyond the 15 days . Is there durability of this . This was a study so its the first time anyone has ever tested this particular mechanism which is a way of calming down the brine. It was brand new science the effect we saw was very pronounced and seems to be prolonged through day 42 it maintained significance over a month. Again, you have this issue between the difference between placebo where we lost significance and what the patient experiences. Most of the Patients Experience durable responses out to 42 days again, i just want to take a moment, the team at sage did a great job thinking through this trial. Can you give us any information about how youre thinking about the next stages of testing depression has been such a hard area especially because you see a high response a lot of times you see a lot of drugs fail in stage tloo e the data we saw on this trial is so dramatic, zeal see more into phase three we had a similar type with the postpartum depression drug and the pattern in this study looked similar to what we saw there. The old style of thinking about what antidepressants do. We have to be very innovative. Thats the work were undertaking right now. How big of a Market Opportunity is this for you . If you look at the total depression treatment market, its tens of billions of dollars. Every year in the u. S. Alone, there are more than 16 Million People diagnosed with major depressive disorder. Its an area of significant medical need so the market potential is quite large. I think if were successful and we can, you know, validate these findings, you are looking at a drug that may offer a distinct side effect and efficacy profile that may be different than anything else available. Were very optimistic we could make this. One of the questions people have brought up is the ip around the drug and the patent protection there was just a note out from rbc on this topic. Tell us about the patent life of your drug. Well, this is a drug that actually is discovered and developed by sage. We own it entirely we have worldwide rights with a patent after 2034. We have a lot of time to study the potential benefits wall street got very excited from the phase two readout and they raised the probability of success in terms of fda approval to on average what ive seen is 60 , 65 are they being conservative in your view . I think these data are very dramatic and i think most of us were really astounded by the results we achieved in this trial. So my view is i think the optimism is warranted. We still have a road ahead of us we have to do the testing looking at safety and efficacy i think that as i said, this drug may offer real hope for patients with depression is this going to be as big . Is this going to be like a prozac moment in the industry . I certainly hope so all right thank you. And we do want to let you know that coming up in march 2018, cnbc will be hosting its firstever Health Care Conference called healthy returns and will focus on the cross roads of Health Innovation and investment the special event will feature top ceos and entrepreneurs about health care. It is march 28, 2018, in new york city. Mark your calendars. Go to cnbc. Com healthyreturns for more the devastation in california continues to grow wildfires now burning in San Diego County as well as continuing to engulf many parts of los angeles aditi roy is outside of l. A. Reporter hi there. This is one of the neighborhoods that really bore the brunt of these wildfires. This is in Ventura County in ventura and the winds yesterday were really, really high that kicked up a lot of the stats. Six major wildfires burning throughout the state we were standing in the path of one which is the biggest still going. 140,000 acres scorched 500 structures destroyed but all that in mind, i want to bring in bill murphy with cal fire to provide context into these wildfires. Thanks for joining us today. Glad to be here reporter so right now the big fire is the thomas fire. That ones only 10 contained. Youve been fighting it for several days whats going on with that . Current status is 132,000 acres for this fire. 15,000 homes still threatened. And 10 contained at this time why is it taking so long . 132,000 acres is a very big fire this fire spans from the east side, the Community Near santa paula all the way to the north toward Santa Barbara it covers a huge area. And in that first night, it spread over a very Long Distance reporter ive covered wildfires for 20 years now and i have never covered a major wildfire in the middle of december with two weeks before christmas. And yet we have six burning throughout the state what gives with that yeah. Certainly december fire is not unheard of in california fire season has certainly extended to be nearly a yearround event in the state. You just have to look to the last several years of drought. Southern california still has had almost no rain this year so youve got fuels that are incredibly receptive to any kind of fire. You put the santa ana wind on top of that and these fires just spread incredibly fast in fuel thats very dry. And is it unseasonably warm here i was visiting my family over thanksgiving, it was 90 degrees those days certainly had some warm weather late in the year but really the big issue with the fire right now is the winds and their ability to spread those fires incredibly fast. Reporter the wine country fires have brought in claims of nearly 9. 5 billion. One thing that also seems interesting and different from my experience of covering these fires is before they were mostly in wildland areas. Now out there in santa rosa, Shopping Centers, Shopping Centers were mcdonalds was burned, there was a Department Store burned here, too, were in the middle of a suburban neighborhood is that something thats new also that the fires are creeping into more heavily Populated Areas and why . No. California has a history of destructive fires that burn into the Populated Areas. When you have gusts in excess of 70 miles an hour, essentially anything in front of that fire thats combustible can become fuel for that fire reporter great bill murphy from cal fire, thanks for providing that perspecti perspective. Coming up, more on the big jobs number. Will wr will jobs be created in the future kate rogers has the answer hey there, steve. This may look like fun and games, but the virtual and augmented Reality Industries are creating real jobs and were into tl you how and wie coming up next on power lunch. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade we are the driven. The dedicated. The overachievers. We know our best investment is in ourselves. We dont take no for an answer. We fight for what we want. Even for the things that were once a given. Going to college. Buying a home. And not being in debt for it for the rest of our lives. But were only as strong as our community. Who inspires and pushes us to go further than we could ever go alone. Sofi. Get there sooner. Hello, everyone. Im sue herrera. Heres your cnbc news update for this hour. The Defense Department releasing video of u. S. Navy superhornets, jets hitting taliban narcotic production facilities in afghanistan. That operation happened on thursday the d. O. E. Saying before being destroyed, those factories contributed nearly 4 million to the taliban. California officially launching its online licensing system and is now accepting applications for commercial marijuana licenses the state now 24 days away from launching recreational pot use the flu is now widespread in seven states according to the latest numbers from the cdc. There have been 10,000 confirmed cases so far this season doctors say its not too late. You could still get the flu shot southeast residents waking up to a rare sight snow Central Alabama receiving as much as an inch of snow in birmingham causing a number of schools and businesses to be either delayed opening or closed houston also getting hit by snow and that pesky ice thats the news update this hour melissa, back to you all right thank you very much. Weve got breaking news here out of the White House White house Deputy National security adviser gina powell to resign early next year thats the headline we have. No reasons but powell to leave the white house early next year. The economy adding 228,000 jobs in november Unemployment Holding steady at 4. 1 the biggest manufacturing and health care. Lets bring in National Urban league ceo mark muriel and joe watkins for insight on what these numbers mean for the economy. Mark, good to see you. Great to be with you. I think one interesting thing is how broad based it was. Seems like the job market seems Pretty Healthy right now the obama recovery is now in its eighth year. This is a strong jobs report we now see wages are beginning to rise to some extent that remains the challenge for the future of the American Economy. That is this continued stagnation in wages which is driving the, if you will, the income inequality that is really a longterm issue. All right mark, i want to come back to that you know, joe, mark brought it up lets have at it is the obama economy in action here or the trump economy . Well, you have to president obama gets credit for some of the movement that weve had. I mean, clearly the predecessor to this current president has to get some credit for the Forward Movement weve seen. But President Trumps policies certainly have done a great deal tax reform if hes able to make word on it, thats a great thing for america and we hope to see that happen by the end of december. Yeah thats the kind of thing that encourages businesses, that moves the stock market in the right direction. And i think its another good sign that the economy is strong and getting stronger mark, i want to do one more political question here. I hope you can help me out because markets are at an alltime high, confidence is at an alltime High Consumer confidence, Business Confidence out there how do democrats deal with that . How do they understand that all of a sudden Obama Left Office and donald trump comes in and everybodys more confident well, the most important thing is the foundation that donald trump inherited this is not foundation anymore. This is the real deal. This is now. Month after month theyre more confident. Let me make my point though im sorry go ahead my point is this, right this president has not done anything to alter the arc of the American Economy give them credit for not screwing it up and this recovery does in fact continue now, this tax plan that theyre poised to pass is not a good deal for main street america it may work for many on wall street but for main street, for example, im hard pressed to understand how fiscal conservatives can support a plan that adds 1. 5 trillion to the debt or how fiscal conservatives can support a plan that includes a double taxation provision where all of a sudden people are going to be paying taxes on the taxes they pay to state and local government so im hard pressed to understand those elements of this plan as well as the imambulance i imbalance in this plan i look at it through the lens of not just wall street but main street america you know, joe, i think president s get blamed for too much but they also get credit for too much no offense to any president from George Washington to donald trump, i dont think the president s matter that much when it comes to the economy. Thats just my own opinion we can fight about that differently. But i will say this. The one thing that people arent talking about in the tax plan with regards to Corporate Taxes is the big drop for retailers. Heres why people care i know on the left theyre going to say its just a tax cut for Corporate America and shareholders however, if retailers see the biggest cut to their taxes, shouldnt that flow down to lower prices the Amazon Effect may be multiplied even more so things cost less. That is effectively an income raise. Youre right, brian i agree with you i agree with everything you just said the only thing i dont agree is the part about the president s. Having worked for George Herbert walker bush, i know president s can have impacts on economies. Sometimes what they do in the shortterm may be unpopular but may help in the longterm. The president for whom i worked did one or two things that might have been unpopular from a tax standpoint but on the other hand he helped set up the 1990s to be a time of prosperity for americans. Brian, i want to come back a year from now and see if, in fact, Retail Prices have declined i mean, if the assumption is that, quote unquote, a reduction in taxes is going to lead to lower prices lets see what the evidence shows. Heres what i position on the Corporate Tax system is. It is broken, but this is not the fix we need. What we need is a plan that is revenue neutral and that eliminates loopholes while reducing rates that would make it fair and balanced for all so im not we dont know what the final plan would be yet. Yeah. But neither the house plan or the senate plan we love having you on i would like to argue babt this for days ive just been given the hook. I got to go. Good discussion exactly well get you back on. Every jobs friday we take you to where the jobs are. Today theyre all around or at least they could be and we dont just mean literally. We mean virtually. Kate rogers looking at the booming business of augmented reality. Kate hey there, brian. Thats right the virtual and augmented Reality Industries are growing rapidly and now workers are needed to fill roles in companies that are making and utilizing this technology. Also popping up at places like cuny where were live today where they train students. Reporter after working in broadcasting and architecture, tina chang is ready for a change shes now pursuing a new career in Virtual Reality training at Lehman College in new york the chance for this is huge it takes a lot of creativity and understanding of how m you can take this new echnology. Reporter this is the programs inaugural year with 20 students training for 11 months. Cheng and her classmates currently work on creating tutorials in Virtual Reality skills i like applying are my research skills, timing, dealing with sound, imagery, writing the script, and also trying to make all the elements Work Together so that we have concise and fun application. Reporter Prior Experience in Computer Science or coding isnt necessary to succeed theres a tremendous opportunity for people who are entrepreneurial. The most important thing is passion and creativity because you can learn these skills reporter starting salaries range from 60,000 to 80,000 a year but of course that will vary depending on your role and where youre located and also lehman is teaming up with the city of new york and mayor de blasio to open up a second Training Facility at the Brooklyn Navy yard so more potential wouldbe workers have future opportunities back to you guys very cool story im not sure about the dude running from the shark its like sharknado 6. Is that really kate or is that virtual kate . Are you really there reporter its me im here. How do we know . Maybe one of those students created you. Reporter trust me. No, its kate reporter its really me, steve. All right how do we know its you, steve . I dont know. How do i know its me . Poke him. Now Rick Santelli tracking the action at the cme. Rick intraday of 10year, boy. Were up one on the day, oun on the week and sitting comfortably. Dollar index a different story its climbed back up to a significant level at 94 up generously since last friday if you look at the july start to pound versus euro, its like handicapping the talks going on with regards to brexit and the pound hasnt added either but its darn close. And finally a midapril look at the 2year its once again getting to a level that may extend history in terms of how negative it is. I dont think thats a good thing for the economy in europe. But it certainly has some pretty positive numbers lately. Now its back to newman i mean leishman. Thanks very much. Coming up, a young entrepreneur hoping to do well and good at the same time to make it easier to donate to charity. A click away plus well talk to the governor of connecticut about the threat the tax bill poses to his hightax state power lunch coming right back. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. A wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity Wealth Management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity Wealth Management. To help you grow and protect your wealth. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. tis the season of giving. But one tech startup wants to make giving an engaging allyearround activity. Allows users to actually do something based on what they read donate money, call their congress person, sign a petition directly from the article. Lets get more on how it works joining us for an exclusive is speakables ceo Jordan Houston its your first time. Yes, it is. Glad to have you. The big question ive got is does the internet make things easier or harder what i mean by that is its very easy to read stuff and get angry and then do nothing. Absolutely. And i think our generation in particular when i speak about millennials were constantly being told that were slacktavists and not really getting out into the world and making a difference. But i think if technology is doing its job, it should be as easy an ordering an uber thats what our company speakable is doing how can we connect people to the power of their civic voices. The first way were doing that is the news button Action Button to take action on the stories. The first thing youre doing. Whats the next stage . I cant disclose that yet youre a private company. Exactly were a startup i assume it would be more than an internet button. Absolutely. What we want from this in the future is u bik wety we want to be everywhere where people are watching a documentary, on social media, we want people to be inspired to do something so we can increase the likelihood they can make a difference this Action Button appears in articles or near articles on sites like vice and refinery 29, et cetera. How do you measure success here . And how does a button appear there . Does the company put that button there . Or does the charity youre working with how does that all work were creating an ecosystem of ngos and we have a data base of charitable actions. We use a. I. To match that to relevant contact so it can be populated on the page, super seamless, user can take action in 30 seconds or less. They dont have to leave the article that theyre reading and were really just trying to make the experience of taking action faster, assessable and increase the likelihood. How does it work . I am reading a story about, i am making this up. The idea that tigers endangered in siberia does your ai find the article and connecting it the the wwf, does that happen it would be whether or not the publisher has activated that issue. We have been working with the 29th on Sexual Harassment and with the guardian of homelessness and california and during the hurricanes and hurricane harvey, we were activating a Hurricane Campaign with time. It is a way for users to be apart of the content and participate. Our engagement and i going beyond liking and sharing articles, we want to do more with the news that inspires us the internet jordan can be very stupid. Lets be clear. You are reading an argument about something and there is ads and not only irrelevant but counter to what you are reading. I was reading an article of the caribbean not having power and there is a sailing ad that comes up how do you make sure it is targeted and relevant and important . You got to keep it c contextual we really believe that and i think also thats why people are consuming news on facebook and twitter instead of on, you know, yahoo. Com because there is community in those places and engagement and more things you can do with that content i think publishers are picking up on that and making the content more interactive you got involved in this very early on, you are a millennial, i would guess. And deeply entrenched in making this kwoyour quote on qu business start up and you got a business father thats deep in issues of aids in africa how does that influenced you in deciding to go this route . I come from a family of activists. My mom has also been engaged as i was growing up so i think theyre very supportive and we see this as the next level of activism and we can make everybody able to access their voices and making a difference on the issue, what can be better than that . Paul hewson, hes an up and comer. Time will tell. Jordan hewson thank you very much, speakables ceo. 70 is quite impressive thank you coming up, the analysts calling what you need to know. Street talk is coming up next. Will people leave in high tax k ate like connecticut, well asthe states governor coming up next on power lunch. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Back to street talk. We kick it off with carvana. The analysts expecting impressive target growth second stock is Consul Energy the target is 19 bucks the company ever gone a radical transformation relatively unfall and analysts putting value gap. 19 target is about 30 upside scientific getting more bullish. The analysts think that things can out paste its peers, Boston Scientific and your final stock is Granite Point Mortgage Trust share trade is one time. Despite the evaluation discount of 25 years track record the company has the ability to achieve its goal 20 total upside, fastest street talk ever. If you are thinking of jumping into bitcoin, hold on, well the you the difference between all those exchanges we talked about plus, how will tax reform impact the retail stock and one of our top analysts breaking it down and all the hottest toys, i want you to tnkhi retro, it is the hot list, it is coming up on the other side of the break on power. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call to save 500 off bath walls with your walkin bath, or visit kohlerwalkinbath. Com for more info. All right, here is on the menu of the second part of power. The governor is fired up about it hes here to tell us bunker over bitcoin, a town of money is paouring into it the well explain of the difference of all bitcoin. 16 shopping days until christmas. If you are trying to figure out what to get for your kids, well get you covered. Well show you the hottest toys this season. I am brian sullivan, power lunch begins right now. I am Courtney Reagan joining us at the second hour. It is nice to be here with the team stocks on the back of the labor job. Microsoft and United Health and boeing leading the dow the nasdaq is the biggest gainer today. A third in a row after being down three days in a row utilities and Consumer Staples are lagging. Does that mean a touch, the bill will be passed next week ylan mui is joining us it is impossible for the white house to get it done gary cohn told us that those lawmakers taxed of the final version of the bill is working through the weekend and hes expecting an enormous amount of progress by monday. One issue is not settled is the estate tax many people signing a letter demanding to get rid of it the state and local Tax Deduction is up in the air, gary cohn said this morning, theyre trying to find the great compromise i heard the state level Tax Deduction of many, many times. We are concerned about that. I was on a phone call this morning, we were talking about the issues and what potential fixes are. There are 70 members of the house in salt states, they have to have a solution to allow the residents to come away of the position that allows pemembers o support this we are expecting one Public Meeting at the Conference Committee guys a lot of the work is happening behind the scenes. Back over to you ylan mui in dc. The gop tax reform plan resealed sualt. This had many politicians representing this higher tax state up in arms governor, dannel malloy. Thank you for joining us great to be with you. What are your days like in terms of trying the get something that that bill which wont harm your residents. Lets go back just a 30 seconds. Theyre meeting in private they are not having a public discussion they dont want the discussion to be heard by any one the other thing i would like to say is, on the lead of talking about states thats going to be heard, those states contribute to federal funds and they pay more tax to anyone does to the federal government we are a given state who are we giving to we are giving to states that are not having a net contribution to the budget so this is tough and i am worried about it on a longterm basis, not on our state but for the National Economy if statistics are right and the salt states see a 10 decline. Thats a depression. Lets talk about the size of the states we are talking about california, 38 Million People. My own little state of 3. 5 Million People and new jersey and a whole bunch more and areas within states, quote on quote that are not salt states but have large metropolit metropolitan some people would say perhaps states like yours and states like california, new york and new jersey, they should then cut taxes. This is the opportunity for the People Living in the state contacting their local legislatures and say what, the taxation situation in this state is terrible. Sure. Well, first of all, people make choices within those states and about that tax policy. We have elections, you know every year and we elect legislature every two years and we elected governors every four years and thats how you make those decisions. You dont have the federal government forced a policy change like this by the way, lets go back to my argument my argument is using a 10 decline and homeowner ship and the values of home in our country by definition is a recession. Yeah, i agree is that really what they want to do . I agree of everything you are saying only because of the people thats sitting on this desk right now are all getting wacce whacked. Dom chu to my left lives on your state. Thats a different issue here is the thing governor, for years and i am not picking on you or your state. New jersey and new york, they always say high taxes are not driving people out high taxes are the end of your state, seems like you guys want to have your tax cake and eat t it, too. I think thats a little unfair i dont think anyone said the population of new york city have done anything but go up. The tax policies reflect tradition. They reflect how people want to spend the money within their states but everyone of the states you are talking about is giving more to the federal government budget. How about an equity argument along those lines. Why is it unfair to penalize people from making a decision, for example, that they want to spend more money on their highway systems or they have a subway system or extensive train systems that subsidize in the case of new jersey you dont have those systems and dont pay for those and all of a sudden your economy within those areas and the contribution they make in the federal government decline substantially. We are 50 states why are we changing the rules for which we have governed for a long time. Is this a punishment yes, it is a punishment if it is an intentional policy, why was this not worked out in a traditional matter and why is there not a public hearing. This is unlike any other tax brackets that we have seen in modern times it is not signed into law yet and still negotiations do you have your state representatives that have your voice and understand your concerns sure. And i think of salt states do. I think it will be interesting how many and if this goes away and the bulk of republican congressman in california voted for this package already, lets start, theyre on record and they want to penalize the people of alifornia we have people in new york state who voted for and they want to penalize their constituents and we have people in the philadelphia area voted for. They want to penalize their c constituents you cannot wait for the next election you ask what i will do . I will say more prayers. Lets say this goes through and there is no more salt deductions what happens to connecticut . A year or two years or three years . Let me assure you, well be here but your citizens will be punished by the federal government the federal government will waive taxes do you think it will lower income tax states for instance, will you lose businesses or what is the impact . The real impact is our citizens will pay an even more on fair percentage of the total federal budget thats what i think will happen. I think well look at a very Different Congress in less than twelve months and i think any damage that they bring about in the economy hopefully will be short lift again, governor, i am not being tough on you, i am being tough on all the blue states there. My daughter is born in stanford connecticut. I have a great affection for connecticut. Stanford has wonderful mayor for 14 years different issues. Is hartford going to go bankrupt no. I believe the last legislation session in that, we have put in place for hartford to avoid that labor got to give and the bond industry got to give and they have to clean up their house and hartford to some extent. I think we have th time we appreciate it thank you governor dan malloy of connecticut. If you look at your screen, you will see two different prices dom chu is joining us now to explain the difference in changes and how it will affect the future markets another of price of cracking and different ones the big ones a, we are talking about right now is the idea of no centralize trading or any true consolidated tapes that record every Single Exchange thats unlike the stock market that we are used to. No matter where ibm trades or nasdaq or where ever it is it all goes to one place just for reference, we saw the one bitcoin trading, 19,000 for bitcoin. Coin desk a site that tracks a lot of this. The average highs show around 17,000 in the market coin base shoulders a lot of volume in bitcoin. It is popular among many retails in america and price is of bitcoin and coin base have been higher and even right now. There is another San Francisco based e chanxchange that we just mentioned and other currency terms like bitcoin for europe or Canadian Dollar that you also pay. Kourtney just mentioned them they trade not just bitcoin but other crypto currencies as well. Forget guys, everything you thought about this and everybody trades on dark webs. When it comes to trading on these platforms, most participants considering establishing, theyre going to do a lot of this, and theyre going to ask in my cases your name and address and Bank Information and some even want photo id and residency and Social Security number and looks like you are doing a lot of different trading because there is a lot of Tax Implications this idea that you cannot trust anyones price because it is not necessarily indicative they may trend the right way but they are different with regards to pricing thats whats make a difference the contract is going to use a composite of a few exchanges the cpoe that comes out on sunday is going to look at gemini auction date and you will benchmark on that. The idea of the futures market, theoretically is you can see some of the Price Movement compressed a little bit because there are availabilities for you to take the other side of the trade without having to be short bitcoin itself this is a long only market right now. People only tracking it and you buy and sell it. It remains to be seen of what the first day is like. Well have a lot to talk about on monday. Well have a full day of trading. By the way, for the retail investors. The only online Trading Platform thatll offer bitcoin future trading but theyll only offer on the long side so do you think you can go to zero n five years the interesting about this thing, if you look at all the different platforms, guys, coin base, there are two buttons. It is a market order for stocks. You take whatever it is there. If you look at other platforms like cracken orbit stamps, there are two way prices just know as much as you can before you get involved. Well look forward to see you on monday. I will be here on monday and i am sure bob pisani well, here is whats coming up next on power lunch. Our tax reform impacts Retail Stocks and one of the Top Industries and top analysts breaking it down for us. He was named on the 2018 list. And the wildfires ravaging los angeles is getting stronger. It is sha iny buying opportunity and all that and much more, coming up on power lunch. Ats the global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. The dow industrial is up 20 . Great year, the question is this, whats going to happen in 2018 lets bring in rob hayworth and our chief independent Adviser Alliance guys, i am going to ask you to do something here, maybe hard or impossible it is friday lets talk about the market without mentioning taxes or politics, can we do that can we both agree to do that . Rob, what would be the best Case Scenario for the equity market if you had to make a bold case, what is it is it brief momentum you are seeing a good uptake in Earnings Growth this year of a solid economy behind us and not great but solid. We think you see a continuous uptake in earnest growth probably not what we have seen so far in 2017 we think 2018 is going to be good it is good old fashion Earnings Growth there chris, would you agree with that thats old school right there, i like it, chris zaccarelli. You will see multiple expansions as well i think the full case is pretty high when you get to s p and 2900 and 3,000, i am not call for that it is a good possibility we are in a situation where it is interesting we got about two years of a big pull back. Historically over the last 35 years, every two years, you get a double digit pull back i wont be surprised of getting one between now and next year. I think based on the global earnings around the world and the synchronize recovery, well key another good year or next year that seems kind of vague, chris. You are seeing that we can see double digit returns next year that does not help me i think we may see both and i think we may see both. If we do get the double digit pull back. Well get large gains by the end of the year. I am calling double dames point bridge gains by the end of the year so you stay invested overall thats my point all right so rob, in terms of what we should be investing in and what sort of themes of 2018 and what are they do we believe this rotation thats of the market in terms of rotating into the likes of financials and industrials and so on. Does the promise of infrastructure plan to be unveiled in january. Does that change your outlook or investment thesis . Well, i dont think infrastructure is going to change our thesis. I think it makes it robust you get a another boost to grow. I think it does help financen s financials and industrials we are seeing transport picking up here and financials have lag behind the Technology Side and with a lifted Interest Rates and some deregulations and thatll be pretty good for financials. I think these companies are well positioned looking into 2018, but the winner are probably still the Tech Companies particularly if we get some capitol spending thats probably the three areas that we focus. What about what you are seeing over the rest of the world and monetary is still the trend. Are you still investing in the United States or are you sprinkling out your investments across the world, what about emerging markets we favor it overall emerging. We are seeing an expansion of europe and japan and thats going to last into 2018 and carrying the economy into 2019 we are worry about policies coming out of china and could destabilize the market and china ace big percentage of emerging market indexes you are seeing a lot of differences as luke around the emerging markets yes, we are seeing brazil and russia getting out of recession , it is not clear sailing for china. Well be more cautious on emerging markets and still want to be invested and not seen kind of a tie of the way we are developing markets we appreciate it. Have a future cast tiantastic wd thank you, gentlemen the expectations there will be something for the president to sign before christmas our next guest says Retail Sectors stand. Our National Retail federation naming matt to their list. Tax, lets get into tax for retailers. We know they pay a high tax rat rate so if we see a 20 corporate, what does it mean for Retail Stocks that you cover . Our state has an average tax rate right now of 32 . A move of 20 . I think the bigger question will be what companies will look to reinvest some of this opportunities and i think those that are in more price Competitive Industries and probably reinvest more i think you can see a lot of flow through thats not going to be a case for everyone you got multi National Retailers you cover and this wont help them as much as some of the Dollars Store as you suggest the way you look at it if you are in an industry thats extremely competitive. If look at it, the team retailers and they found a lot of cost savings recently they are finding they look to invest Something Like digital and pricing, in order to compete some of the head winds out there and in order to be faster to meet consumer demands. If you are in an industry of deflation where there is a lot of Pricing Power and pricing pressure i think companies are looking to reinvest a lot of the opportunity and none of this is bad for anybody. It is going provide them additional opportunities but if you are in an industry where it is a pass through entities and such as enough pricer or a dollar store where you know you are not facing as much as the competition from the amazon in the world and you have more insulations, i think you will see more bottom line secretion what if you are in one of these states where we have the state and local production change where we are talking about earlier of connecticut governor, malloy, what happens then if you have lower spending power and what retailers putting that effect . It is a great question. We put a note out on this earlier this week. We were looking at the salt deduction. Who can be beneficiary and who could be detrimental. For example, the nordstrom of the world, the coastal state in california, i think it could be a detriment to retailers such as that the flip side becomes those exposed to states such as texas, florida, and i think i have actually a double benefit because we are seeing an oil and gas recovery happening in those states and double standard deductions for the middle income consumers, i think can set up pretty well. They have been come payipetin amazon if tax rates come down, theyll have more pricing flexibility. Will it help some of them competing on price and verses amazon and maybe lower prices for consumers which is a back doo door in come increase . Thats right. All of this is by 20 across the board to my space. But then the question is who looks to be invested and who puts it back into price and i think there could be multiple benefits from that maybe you dont get the bottom line of dropping this rate through earnings if it results in lower customer prices, that could drive the top line and market share and it could be a nice way for core retailers to fight back some of the head winds such as amazon, such as what we have been seeing key take away so far for the season and spending up of 2 through november 25th . It is encouraging i think we are off to a very good start november and i think has us off to probably the best holiday start in four years. We are seeing across the board, we have a projection out there of 4 to 5 . I think the off pricers are sitting at a good place, we like burlington and at the dollar store, we like dollar tree i think everybody is off to a really nice start. Low end despairing very well and news of it and cnn effect of it. I think it is also a nice positive for the consumers at a key time in terms of shopping. Retail stocks have certainly a nice little run here thank you very much matt boss, we appreciate you joining us here absolutely. Wildfires continue to burning and spreading to more than 100,000 acres. Well bring you live on the ground power lunch is back in two is what they hope to get out of life. But helping them get there takes a pure focus. Because when you invest their money without distraction, hidden agenda or competing interests, Something Wonderful can happen. They might just get what they want out of life, and maybe even more. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade hello everyone, i am sue herrera. U. S. Ambassador, nikki haley, defending President Trump recognizing jerusalem as israels capitol this week President Trump finally made the decision to no longer deny the will of the american people. It is important to be clear about exactly what the president s decisions does the president has announced the United States recognizes the obvious that jerusalem is the capitol of hisrael snow and ice blanketing much of houston this morning the rare ice storm is causing problems for a lot of drivers. The winter storm hits several state in the southeast out west, california lit the official christmas tree, looked beautiful right in front of the capitol last night it did not go exactly as planned. After they were on for a few seconds, the stop left side of the tree flickered off most of the tree is lit but somebody has to get up there and figure out what went wrong theyre having a rough week thats the news update at this hour, need tylosless the to say. Think of the job when you have to go check each one. What is it going to do to the Housing Market in california. Maybe checking on the bulbs for us. Now to the wildfires in california, aditi is live in ventura, california for us reporter hi melissa, check out the lemon tree look at the rest of this house is turning to rubble this neighborhood was smacked in the middle of the thomas fire. It is the biggest one throughout the state right now. Another one that firefighters are watching closely is one down near san diego it was 250 acres and quickly grew to more than 41 hung acres. It is 0 contained we caught up to gas workers back here in Ventura County it was a group of 200 dispatched here to the neighborhood and making sure that peoples homes staying safe while evacuation orders still stay in effect. There is dispatchers still seeing them working in the area. Another fire official who tried to tell us why we are seeing all the wildfires burning in the middle of december Southern California still has had no rain this year so you got fuels that are incredibly receptive to any kind of fire. Reporter another factor he mentioned was the winds. Fortunately, one Silver Lining is the winds have definitely died down. Back to you guys lets go to jackie deangelis, at our cnbc commodity. Tension in the middle east sparking some of the buying and crude is still on track for a loss of almost 2 for the week a session highs to 57. 79 u. S. Production is going up and setting new records. Opec, theyre supporting this price rise, shell is pumping and that can only last so long before the price scale tips the other way. Well have to see which happens first, guys. All right, jackie, thank you. Meantime if you are are counting there is just 16 shopping days left until christmas if are just beginning your Holiday Shopping we have got a list of your hottest toys for your kids fchlt y if you are a kid in the 1980s, you may see some familiar faces, power lunch back in two. Let out your inner child at the lexus december to remember sales event. Lease the 2017 is turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. You better watch out, only 16 days before christmas if you are figuring out what to get the little ones, we are here to help. Of course, consumers can still get the toys i did a story how they are selling out. Jackie, what do we have here retro toys are huge right now. These are toy that is grandparents may have had when they were kids and now they want to share their grandchildren do remember teddy hes soft and lovable and still tell stories and sing songs. Kids have the option to follow the story on a smart device. This is an ai doll. Tech stores are huge. She can play with her toys and you can rock her to sleep. Shes very interactive she recognizes her toys that come with her and you can feed her, very cute we talked about the lol surprise ball early on this show, i think several months ago. The element of surprise is still huge the blind packaging, these are 60 of the year. This is an lol surprise. There are seven layers of surprises in this. This is a lol surprise pet when kids unwrap the layers, there is brown bag inside. Even layers of surprises. Thats a little pet shop. She comes with cute accessories so kids are going to have a blast with this what is this . So little si fsilly fun gamee right now. If you push it on press the timer. You wont be able to hear. I am going to mouth this bizarre thing and you got to guess. Dont look you have to guess what i am saying so that way, here we go lets go so america can see it as well. Dont eat too much candy. Yes thats awesome. You are good, you are a natural. Folks, i want to be clear i am not a cheater. I am very obedient that was awesome. You are good. This is a lot of fun and all generations can play together and have a great time. What about the toy at the end. There is a trend of getting kids up and active and running around and inside or whatever. With ultra dash, what kids can do here is it comes in this tagger and flashing ies in diff colors there is five different targets and kids are going to run around and see how quickly they can tag it on different colors what are the prices 99. 99. 99. 99 for teddy . One that looks like chuckie hes adorable and kids love him. Do you have some videos thats scary. I have to admit that melissa is right. We interviewed him and he said himself that it looks like chuckie. I like you. Go get me. Or maybe the parents are buying it. I want to show you one more trend thats hot right now these are toys thats teaching kids concept in science and technology and engineering and snap kids building this over 100 pieces this is the switch grip. They load in the project tile and if you want to give it a push should i watch it. Oh. There you go yes thats a lot of fun kids are having so much fun, they dont realize they are learning while they are doing that thats a good stem toy. Thank you so much for being with us, jackie. All right, thank you. The gop tax reform plan could have state and local government blooding the bond market of new fengs. Well tell you why, stick with us here on power lunch. A waive of bond offering could be coming at the end of the year lesley pickers has more of the story. So what about the tax plan that had state and local governments on edge . [ inaudible the elimination of this state and local Tax Deductions could be a problem as well moody says the nate bill is a negative and especially for california, new york and new jersey so joining us now to discuss this further, lauren scottly, the chairman of ceo, the firm specializes in municipal and public purpose assets. Thank you juror joining us lawrence thank you, les lilie. Well, it has two effects. In the short term, investors in those states, taxes will go up and finding more values in Tax Deductions is that a good or bad policy i prefer not to comment on the policy it is too early to tell. What does it mean for you activities. Our firm is looking at situations and volatility and other factors like this in municipal markets. Our investors benefiting with our long view of capitol and our patience and ability of in the capitol and we are poised and opposition por that. How do you see everything you have read based on the tax plans as they are written, how do you see that impacting that world specifically, what stadiums . There is temporary fix here it means it should create less in wilhelmscentives incentives sure, our capitols and others will be used but at a higher cost we heard from you all and others that there is legislation in offerings and infrastructure that could come in and replacing private activities personally, you have to be seen of what could happen but for example, infrastructure legislation or legislation in the healthcare space or housing space could certainly help and benefit those issues is the tax plan written contradictory to what the administration have said and wanted to do with infrastructure and creating private partnerships on that front and as you look at treatments of how it can change, is that the contradiction of what we are trying to do on the infrastructure on this country. Lets be positive. Lets hope it duck tails with something that well hope to increase that activity so look, those communities need Affordable Housing and infrastructures. Our infrastructure gap here is huge no one disputes that if you have a legislation that creates a dissenter for private infrastructu infrastructure, one would hope there will be legislative offering thatll help our needs in that category in terms of the rush to market of all the issues and the past of couple of weeks. Are there opportunities for investors right now. Interesting, great question you would expect and leslie mentioned it earlier with this huge rush to the market and a lot of issuance that surprises would spike. The markets are absorbant. The interest for our marketplace of a long channel and after thought has never been greater we have absorbed 21 billions our little firm is seeing tremendous activities around the uncertainty. It has been a positive in many ways all right, thank you. Lauren gottlieb for joining us bitcoin minors have had an amazing three months gold old fashion god miners. No, not so much is that a buying opportunity or dump it and run p iutt all on bitcoin, well be date, after this. Lets begin. Yes e date, after this do you want the sae date, afters and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks,dats 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Firstthen you put yourselfareer. Through school. Got the degree. Youve given it your all, to reach the goals youve set. Dont let student debt hold you back. Refinancing Student Loans with sofi can save thousands. So you can get where youve always been headed. Sooner. See how much you can save with sofi. The leader in student loan refinancing. Its time for trading nation, traders trade Better Together while gold, itself, has held up relatively okay, down 6 in the last 90 days in the face of the bitcoin bonanza, the gold miner etf, gdx, down 14 in 3 months larry mo Larry Mcdonald phil street. Lets talk about gold, and well go to larry on the gdx, itself are you surprised that gold is not down more than 7 , or do you think that gold is oversold . No, i think golds doing okay, i mean, you know, like you outlined what its down, down about 7 , in the last quarter, stronger dollar concerns about rising Interest Rate i really think bitcoin has stolen a large market share of gold, and next week were going to see the fed raise rates again, probably two more Interest Rate hikes next year. So, if you look at the trade on there, the trend traders, they all flip short at around 1,266, stops at 1,301, the july low the adx, which measures the trend, that paints the picture its at 30 and rising here what could turn this market around i like to see how this launch of Bitcoin Futures goes if all of a sudden we see Bitcoin Futures going to freefall and a collapse, its going to lose that safe haven store of value. Quickly, phil start to get people back. Sorry to cut you off quick answer, do you believe there are people selling gold just to buy bitcoin . Absolutely. No question about it. There you go, really interesting. Larry mcdonald, gdx, buy on the dip or ignore is according to our seven factor capitulation model, its the highest score weve had in the last year. Were not quite there to real capitulation want to wait for a little more pain its fascinating because the negative correlation, this is very important, over the last two years, as Interest Rates have come down, every time rates have come down, and this week rates moved lower, you had gold go up. Every single time. Theres been 82 negative correlation between gold and bonds, and this week, for the first time, that correlation broke down and i think it does have something to do with bitcoin. Right now, if you add up all the cry cry cryptocurrencies and the liquid gold in the markets, cryptocurrency, capitalization is now 23 of the liquid tradeable gold and thats up from wow. 2 or 3 a year ago. So cryptocurrencies, bitcoin are definitely eating bottom tliline, stay away frm the gdx. I think were close i think in the next week well have a very tradeable bounce we want to wait a couple days. Phil and larry, very interesting discussion thank you very much. For more trading nation go to our website, tradingnation. Cnbc. Check please next. Now the latest from tradingnation. Cnbc. Com and word from our sponsor. In rising low volatility markets, shortterm pullbacks chance often represent great buying opportunities but picking exact tops and bottoms is a tricky game one approach is to consider waiting for the second consecutive up day after a pullback before putting money back into the market news anchor downtown traffic is still bad. Expect massive delays. radio channel changing news anchor 2 all lanes on highway 50 remain closed at this hour. news anchor 3 the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. 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Who knew asphalt could help save the environment . lani and the possibilities are endless. Im watching biotech staging a bit of a rally here. Take a look at the car t names in particular, bluebird, bio, juneau, rallying in head of the conference on mafast money tonight, the biggest stocks that could see moves on the back of this conference. Theres going to be this five series movie anthology that was totally funded by cryptocurrency, distributed via blockchan blockchain, cost 9,000 ether very interesting, group of five putting it together. Do you have to wear dog lts to watch it . I have no idea. Im still trying to understand you know, all of it. Speaking of bitcoin, i asked my i got the best, the most intelligent twitter followers of everybody. I asked if bitcoin is overvalued, fairly valued undervalued, total bubble, too small to care about . 70 of my genius followers said it was a, quote, total bubble. But 19 said it was under valued if 19 of the population thinks that, bitcoins got a long way to go on the up side thats enough people. To propel it. 19 of the global investing community is enough people to propel it higher futures trading is going to be really interesting to see what happens remember, it starts sunday night at 6 00 p. M. Eastern time. You doing a special no, were not, but im going to be watching it. Fast money sunday edition. Next week, by the way, is bitcoin week on fast money. Major players in bitcoin all next week. Next week is ethereum week on power lunch. Courtney, thanks for joining us. Thank you for letting come and play, literally. Closing bell starts right now. Welcome to the closing bell, im Michelle Caruso k cabrera in today for kelly evans a at the new york stock exchange. Im Bill Griffeth am i being punished or something . Because im here . No, theyre making me start with bitcoin. Just write tulip. Bitcoin is well off its highs of the week. Good for bitcoin investors waiting for Bitcoin Futures to start trading on sunday as the guys were talking about. Well explain how the futures market will work and talk to someone who says this chan