Transcripts For CNBC Power Lunch 20171212

Impacts on housing the states where it may be time to put up the for sale sign. Power lunch starts now im Brian Sullivan a great year for investments keeps Getting Better if you just owned the s p 500 this year, you made more than 25 . If you owned bitcoin to start the year, you made a lot more. Bitcoin up 1664 , but thats nothing. Ethereum, a bitcoin competitor, up more than 7 600 this year. Light coin up 88 today. Mattel is taking a hit, two weeks before christmas the toymaker warning about its holiday quarter. Disney and 21st century fox higher an announcement on their deal could come thursday. Tesla higher as well getting its biggest preorder yet for its latest semiautonomous truck. Pepsi ordering 100 of them all those people could not be wrong on the cryptocurrencies, could there . Wait, theres not that many of them who said shopping malls in america are dead europes biggest Property Company making a big bet theyre alive and well, 16 billion for westfield. Amazon expanding its cloud competing business in china. John burbank shutting down his Flagship Fund following double digit losses he rose to bank for his bet against subprime housing before the financial crisis michelle im michelle carusocabrera, another record day as brian mentioned. Stocks, bitcoin, soaring to new highs. Boeing, verizon and goldman leading the rally at this hour boeing up by 3 . Verizon up by 2 Goldman Sachs up by 2. R5 robert mi Robert Pisani with more. A blip in the middle of the day. Lets look at the s p 500. We were sitting there at record highs. You see that little blip maybe it was senator rand paul tweeting i cannot in good conscious vote to add more to the already massive 20 trillion debt i promised kentucky to vote against reckless deficit spending, and i will do just that that may be an issue for getting that bill together, that reconciliation bill. New highs out there. He would should have more. All the banks are there. Goldman, wells fargo, morgan stanley, regions all the regional banks at the highest level since 2009 theres the one sector pushing forward. You heard about boeing helping the dow out. Boeing at a new high they boosted the dividend by 20 . They authorized another buyback. That stock is up 90 so far this year bitcoin, its up on some of the exchanges, but the futures, the cbo futures, down a bit from the close yesterday. And much less volume about 1,000 contracts changing hands today. This time yesterday we had 3,000. Still trading at a premium to the underlying cash market 17,400 to the cash market. Not as great as yesterday. I think the intraday swings are lower here we see the regulated next week trade. Thats a bigger futures market cboe is an options market. So i think well see more volume next week. Right now up 144 points on the dow. Bob, thank you. How long can the rallies last . Steve liesman asked that question steve . 44 respondents, stock managers, economists, money managers, strategists. Before i show you the results, theyve not been very right. They chased this market higher with their forecast. Right now theyre predicting for 2018, a 4. 3 gain. 3 next year in 2019 to 2862 so single digits, not double digits tenyear yield, they see it rising, call it 50 basis points here to end 2018 3. 75 by the end of 2019. Should the fed raise rates because to cool down the market 66 say no 68 say the average fed official is somewhat concerned when it comes to these levels of market valuations hank smith from haverford writes the ingredients for the bull market to continue remain firmly in place, growing economy, growing profits, benign inflation, and low Interest Rates. John roberts saying were cautious on current domestic equity valuations. We see very few areas that look cheap and see a speculative quality to assets overall at this point we asked about bitcoin 80 say its a bubble. Just 2 says the current valuation is based on fundamentals 17 dont know is it a currency 66 say no its not a currency 17 say it is. The same 17 dont know. So, a lot of leaning against this bitcoin bubble out there in the cnbc fed forecast this month. Great stuff thanks Steve Liesman. New developments on the tax plan being hammered out in d. C ylan mui is live on capitol hill senator rand paul raising knew alarms over the National Debt as lawmakers face a december 22nd deadline to keep the government running i promised kentucky to vote against reckless deficit spending i will do just that. Count me as a no on any budget busting spending bill. It was unclear at first if he was referring specifically to the yearend spending negotiates or the tax bill which some analysis has shown could add 1 trillion to the National Debt. Senator rand paul put out another tweet where he says tax cuts, people keeping more of their money are never the problem. The problem is spending. We should obey our rules, stop the deficit spending and shrink government today, a Top Senate Republican told reporters that a tentative tax deal could be reached as soon as today. We are waiting, if hes not here all right, for Vice President mike pence to arrive with republican senators. Im sure tax reform will come up as they hammer out final details. Is it in trouble or not when i saw that from rand paul, i thought, wow, he will take other people with him . Can you read the tea leaves here you mean is the tax bill in trouble . It doesnt look like thats whats hes referring to but maybe the showdown that will happen at the end of next week over government funding. He was an early yes vote it would be a major blow to republicans if he were to flip im more confused, not clarified, because either things expand the deficit or they dont. Well, this is the whole debate over the cost of the tax bill the Treasury Department yesterday had that analysis that showed it would add 1. 1. 8 trillion in additional federal revenue. Official government score keepers say it wont rand paul has been very consistent in his position over time that tax cuts do generate more growth. Maybe thats his explanation. Here now to shine a light on what we can expect in 2018 is burns mckinney, and steve moselko also joins us. Burns, let me begin with you what kind of year do you see in 2018 compare it with what we see in 2017, compare and contrast is the essay question sure. I would say 2018 f youre using 2017 as a benchmark might be disappointing. We expect returns to be much more muted if the s p can earn 149 next year, you can tack on a 19 point trailing multiple of that. Thats about 4 upside with a 2 dividend tacked on we are looking at the low to mid single digit returns not great but better than you will find in the fixed income market steve i think its all about monetary policy. If you can tell me what the fed, ecb and boj are going to do, i can tell you what the market will do. Were seen recurring Economic Growth, Inflation Numbers pick up, wage growth picked up a bit. Will that be enough to incent the tral bankers to take their foot off the pedal i am a believer you cant look at what they say, but what do they do . They keep trying to talk like theyre going to tighten, but weve seen little actual evidence of tightening if we continue with this aggressive monetary policy, printing money right and left, stocks will go higher, Property Values will go higher. Youre speaking here globally rather than pointedly at the u. S. Fed no thats exactly correct. I dont think these borders matter if money is being printed in japan i wrote an article last week about how the some of the largest money pouring into our stock market is coming from foreign shores as money is created in europe and japan, a lot of that is invested in the u. S. I dont think theres boarders on aggressive monetary policy. As long as it stays aggressive, things will go higher. Do you like financials . The etf that tracks finals is on the high est level since octobe 15, 2007 what is the forecast for financials in the year to come is it the notion of deregulation, the promising of a steepening yield curve its all of the above you have a lot of longer term secular trends which are kicking into gear with respect to financials you have deregulation as probably one of the most effective ways that the new administration has had to stimulate the economy. Youre seeing a lot of banks finally able to return capital to shareholders. The latest stress test, everyone passed the average Dividend Growth was 12 , which was above expectations likewise youre starting from a low point with respect to the yield curve for which theres probably nowhere to go but up. Especially if you start to see a scare of inflation over the coming year. If you see a pick up of Inflation Expectations that should drive up the Interest Rates, steepen the yield curve and that will be a bigger tailwind thank you very much appreciate it. The eyes of the country are focused on alabama politics. The Controversial Senate race between doug jones and roy moore will be decided. John harwood is live in birmingham we have a wild, unpredictable and very consequential senate race playing out in this special election today im in Mountain Brook, a suburb of birmingham. Doug jones walked into the polling place. Hes the longshot democrat. Democrats have not won a race in a quarter century here he walked in, cast his ballot. Sometime later roy moore, demonstrated his extremely Old School Brand of conservatism by riding his horse to his polling place in a rural area northeast of birmingham. Here are the key dynamics that are going to decide this race. Roy moore faces allegations of child molestation involving a 16yearold as well as having some very, as i mentioned, old school views about samesex marriage, and the role of women, and africanamericans, that sort of thing that is causing defections among upscale suburbanites in places like this Mountain Brook thats important because the state is so republican, they need defections from republicans. The second is whether there is a big Enthusiasm Gap democrats are relying on volunteers who are irate about trump and roy moore. Republicans are hoping their evangelical conservative supporters dont stay home democrats need to motivate africanamericans. They make up about a quarter of the electorate here. Very important to a Democratic Victory if one is to occur today. The unpredictability of all these factors is why the polls were all over the place. Yesterday a fox news poll showed doug jones up 10 roy mother up 9 by an Emerson College pool, and amonmouth college pool showill showing it dead heat. This is worth watching because if doug jones wins, that republican majority needed to pass the president s agenda shrinks from 52 to 51. John, thank you 30year bonds up for auction, and Rick Santelli is tracking all the action. The last auction, 56 billion in supply, done in front of tomorrows rate setting meeting and announcement 2. 804 is what those dozen billion, 12 billion, 29year and 11month bonds brought at the dutch issue. Lets go through the internals i gave it a b for demand two points for a bid to cover. Second best in a little over two years. 9 on directs, a bit above ten auction average. Dealers take 29. 1 of this auction. A b on the final i believe it was the tens and the 30s that did better than the 3s sames preferences for taller yields in front of a rate increase back to you. Rick, thank you. Tesla gets a big order for its new semi truck will that drive the stock higher. And a former fate boocebook executive with some strong words about the industry i think the tools that have been created today are starting to erode the social fabric of how society works. Wll debate those controversial comments coming up on power lunch. But theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Teslas semi trucks could be used to haul chips and soda across the country phil lebeau joins us to explain. Pepsico ordering the new tesla semi it has not been built yet, production wont start for a couple more years. This is a substantial vote of confidence from pepsi that when those trucks come, it wants 100 of those tesla electric semi trucks pepsi is not saying what price it is paying for making the reservations or ultimately the trucks the pepsi fleet, almost 10,000 class 7 and class 8 trucks this 100 trucks would be a small part of the overall pepsi fleet. Pepsi growing a joining list of corporations who have said at a minimum, yeah, well take an interest in the trucks sys sysco, dhl, loblaws. Probably 250, 260 trucks have been reserved. The reservation, the list price is 20,000 as is the case with all Big Equipment orders, rarely do companies actually pay what the list price is. Production starting in 2019. Lets show you what shares of tesla have done since unveiling the semi back on november 16th didnt do a whole lot for a while but picked up momentum in the last week, week and a half if you were pepsi, walmart or any of these other Companies Interested in an electric semi this is an easy move to make because you wont put a whole lot of money down. You dont know if youll see the truck in a couple of years if its performance matches up, great. If it doesnt or production is delayed, nobody will remember you put an order in back in 2017 theres a halo effect for companies ordering this truck. They do put money down this does help tesla for the moment with cash. Yes to what degree remains to be seen whether its the 20,000, reservation list price, or if tesla said to pepsi, you know what youre ordering 100, well knock it down to 15, 10, or 5. Or nothing. It could be a winwin for everybody. Right exactly. All right with all this excitement about teslas new semi truck, will it boost the stock moving forward lets bring in Jamie Albertine good to have you here. These preorders we keep talking about, do they give us a signal about whether or not this truck will be a success . Sure. Incremental positives that the industry, fleet operators are getting together, theyre willing to look at it. Phase one for the semi truck is determining that theres an apples to apples opportunity for electric trucks. Phase two, what will drive more orders into the thousands for these fleet operators is when tesla can demonstrate the cost per mile benefits. That comes with the idea of lower maintenance costs over the life of the vehicle, maybe stretching the life of that vehicle to diesel trucks today i think its a longer term proof case, but to see Companies Like pepsi take reservations at this point, its a sign of confidence does it matter if this is going to be a drop in the bucket when you think about the number of class a semi truck produced in north america the number of orders or reservations that tesla has now is around 2660 the semi truck market in america is about 1,000 times that. Its a great point. Theres an r d curve for diesel, still a lot of money being spent in the evolution and better fuel economy for diesel trucks theres ramping r d curve for electric trucks. The fact is were seeing an acceleration of that curve not just from tesla but a whole host of truck mraanufacturers the incumbents are working on fuel cells and electric trucks its no forgone conclusion that tesla can win, but the country is looking more holistically at electric trucks. Its a longterm story. Sure. Doesnt go into production until 2019 in the meantime, they have to deal with the other issues when it comes to the regular sedans how much does this play into the stock price right now, or do you set this aside and look more closely at the issues weve talked about, cash bun, et cetera every time tesla demonstrates or gives a nugget of where the cash burn in the last few years may have been going, ie semi trucks or the roadster reveal, whether its service and infrastructure buildouts, i think that does take that risk off the table and gives longterm minded folks more confidence the stakes are high on the model three. They have to hit production goals. They said they would end the year at over 1,000 units per week thats what hinges in terms of the stocks performance. Theres tax reform. I mention this because marry barra yesterday made some comments saying if the ev tax credit goes away which it could, that would hurt the industry those were her words would that hurt tesla or is somehow tesla completely immune from that issue . Even with the main team lower priced car, which would arguably be more competitive with a gm ev. I think tesla has one thing going for it relative to other existing competitors perhaps even the volt. It has a luxeury brand, aspirational quality to it step away from that, well have roughly 20 of new vehicle sales by 2025 have some form of a hybridization or electric battery component to it. Theres no doubt the industry is moving more in that direction. Sure t could be a head wind, we might see attrition, but over 400,000 people signed up for the three. We already knew they would exhaust their 7500 credit at 2,000 units. Its not new news. Broadly more competitors coming into the space is a good thing it shows the industry is behind the technology and that over time costs will come down and performance will catch up. More places to mraug them in somewhere. We hope so. Jamie albertine dont move, power lunch will be right back. Out your brokerag. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. 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. Coming up, another huge question all of you probably have an opinion on is social media good or bad for society. Well debate this comment from a former facebook executive after the break. I think the tools that have been created today are srtg tain to erode the social fabric of how society works. 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. And i am a senior Public Safety my namspecialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Why did you take Credit Card Debt on . Second kid. Private school. Medical bills. Moving costs. Solid ground. A personal loan from sofi is a smart way to consolidate Credit Card Debt. Certain borrowers cut their credit card Interest Rates 42 and increased Credit Scores 17 points on average. Borrow up to 100,000 with low rates and no hidden fees. Find your rate in just two minutes, and take on your debt at sofi. Com. Hi, everybody, im sue herera heres your cnbc update. New york senator Kirsten Gillibrand said President Trumps latest tweet about her was a sexist smear aimed at silencing her. It was a sexist smear attempting to silence my voice and i will not be silenced on this issue neither will the women who stood up to the president yesterday and neither will the millions of women who have been marching since the womens march to stand up against policies they do not agree with. Netflix says customers worldwide are watching 140 million hours a day and 1 billion hours a week it considers shows people watched for more than two hours a day as devoured the most devoured show is american vandal. Following the warriors win last night, kevin durant spotted a young fan in the crowd he slipped off his nikes, signed them and handed them over. The boy was overcome with emotion. And you can bet durant has a fan for life what a great christmas gift. There you go thats the news update this hour guys, back to you. Hes reportedly a very, very nice guy i dont think he has to worry about getting a new pair of shoes. He probably has a spare of two. Probably gets new ones every night if he wants them. The latest about those California Wildfires jane wells is right in the zone in monticito jane tyler, that home that we were live at during fast money just last hour, thats up there at the top of the hill. The fire crews asked us to leave. Theyve been fighting the fire, if you go across here, you can see the smoke as the fire made its way down and to the far left we have some flames. If we show you the video earlier, they have an inmate crew up there trying to protect that house weve been watching the fire make its way down the mountain for the last three hours they thought it would only take 45 minutes, but it took a lot longer the fire is moving more slowly, still growing, but after exploding to almost 60,000 acres extra on sunday, it only grew about 3,000 or 4,000 more in the last 24 hours to 234,000 acres, thats larger than all the Northern California fires in october put together however this fire has not been nearly as deadly only one death and not nearly as dedestructive. 800 structures destroyed realtor. Com projects 4,000 structures are at risk the estimates here have multimillion dollar ocean views, but today its all smoke and flame. We cut the brush down around t flammable vegetation, so we get it down on the ground, that keeps the flames lower, hopefully it will burn up as it comes up here and go around the house. The hardest part of the job is staying safe. Terrainwise, its steep the fire is dangerous, as youve seen earlier, big rocks are rolling down mountains that was eric rice, hes the inmate leader of crew 22 supervised by the captains good job experience and good use of taxpayer money. What this fire really needs is moisture it needs moisture. The humidity is so low the nearest there may be rain is a week away. So is there any forecast for rain any sign the winds are dying down what about water from the sky . Last night at a briefing, a meteorologist said the soonest he saw any water from the sky might be december 20th fingers crossed. Were supposed to be well into the rainy season now whatever that means in california these days. Last year was wonderful after seven years of drought no rain. In this particular area they have not had rain, any significant precipitation for 250 days is it unusual to have these santa ana winds this time of year it is usually the santa anas wrap up by thanksgiving. Whats been particularly strange about this event, were in our eighth day of red flag warnings. You can see by my hair, the winds in this area have died down when you have day after day of sustained winds cal fire there going up to the top of the hill trained to be polite for my live shot its unusual to just have a week long wind event like that. Jane, thank you very much jane wells in california explosive comments from former facebook executive Chamath Palihapitiya this morning on cnbc saying that social media is ruining our society. Julia boorstin has more on the reaction to those remarks. Were some dramatic warnings about the risks of social media from Chamath Palihapitiya. Hes founder and ceo of vc social capital and coowneder of the golden state warriors. He says he sees everything to facebook but sees danger in social networks. I think the tools that have been created today are starting to erode the fabric of how society works. What i meant by that, today we live in a world now where its easy to confuse truth and popularity and you can use money to amplify whatever you believe and get people to believe that what is popular is now truthful. And what is not popular may not be truthful. Facebook takes issues with Chamath Palihapitiyas kra ti s teag critiques, they say we have done a lot of work and research with outside experts and academics to understand, and we are making vig can significant investments in more people and processes, and were making sure the right investments are made still Chamath Palihapitiya says he does not use social media at all and his children get zero screen time. Wow, julia, thank you very much lets continue this. Is social media good or bad for all of us . We will dig deeper with our panel, herb greenberg, active user of social media joining us. And drew sulipac from the university of florida. Herb, i understand facebooks response i dont think anybody is blaming they seem overly defensive. Nobody is blaming facebook or twitter. Its not the platform, its what you put on it. Maybe its the people. Whats your beef with social media . You think it does more harm than good not to the news business, but to Everyday Americans. Well, i guess the good news is, Everyday Americans are not on social media, at least twitter, which is the most potentially caustic of all the social media out there the way you might think. But enough are there so have an impact i agree with some of the comments im starting to see so much that is so divisive as a former journalist i sat there with rules of engagement im looking at it through those lens, there were rules of engagement, now you can be out there whether poll signals or president who can say whatever he wants, someone promoting a stock, or someone using the word fraud, which we would never use because we couldnt use it, theres know comeback other than to get into gutter warfare that becomes highly anxiety producing and becomes a distraction. And in the middle of all that, theres great stuff and great information on social media. But now i find it becomes something i almost say i want to put my head down, turn it off. Its hard to do that because we are addicted to it. Im sure when mr. Benz invented the automobile, a few people got run over, but ultimately you say this is here to stay not much we can do to get rid of it its a part of our fabric. What can we do to minimize this . To herbs point, for the majority of humanity, we woke up and we were hit by a news cannon twice a day. The morning paper and maybe nightly news now people are hit with 1,000 bbs all day long of information. Can we handle that social media is a tool like any other tool it depends on how you use it and who uses it. Yes, i understand where journalists could be upset with how people are using social media. Lets not focus on journalists. Theres not many of us. We get it. Twitter is a bullhorn for people who already have it, but for most america its a great equalizer, it gives everybody the opportunity to participate in the discussion as a tool it has tremendous value. People forget about the fact it allows people to engage in conversations with the rich, with the powerful, with government officials, everybody is able to participate in a way that was never possible before it really is an overall greater positive than negative herb, you said specifically that he was worried that the tools are eroding the social fabric of society. I think to another time, when the social fabric of society was under complete and utter destruction. The french revolution, they were beheading people, rumors spread like crazy that happened without facebook arent some of these things that we see just true of human nature i think youre right but this is sort of a new frontier in a different way. I find some of what i see increasingly just totally repulsive. I have a right to look at it or not look at it i choose to look at it i agree that its a great equalizer. Anyone can say anything to the point of being inflammatory, libelist in this case and theres no recourse. You dont know we know that its been abused by governments, other governments. Where does it stop that concerns me for facebook, im wondering, the focus of the conversation on squawk box, i thought a lot of the focus was the impact on children going on to facebook, seeing that other people have fabulous lives, infa grahstagrainstagram in there, and limiting your actual impact with human beings, we see that every day. Isnt that bad for this new generation of kids who are coming up . It is important to take a break. Its important to not be so connected to your phone. Now, younger people do have a hard time with that. I struggle with it myself. It allows connections, gives you the opportunity to reach out to be able toconnect with people when you might feel alone or like nobody quite understands you. It has such psychological benefits as well again, i think the good outweighs any bad that can be found with it. Unless youre looking at that and youre saying, oh, my gosh, i dont have that life oh, that person is prettier than me or cooler than me that person is traveling to a destination i cant afford to go to nafrnlg that happened in high school and junior high as well. It happened in any classroom you attended when you went to school 30 people knew about it then, now 3 million can. Let me jump in with one thought here i think youre making some interesting points about the relative weighting were going through a period of dislocation here this is a new medium its no accident that they call it new media social media is a spawn of the internet herb, i would like your thoughts on this. To me, the most important thing that the internet did was it made everybody a publisher anybody who wants to publish can publish. For better or worse facebook, instagram, twitter, whatsapp, snapchat you all of those things are just different tools spawned by the internet, fair point very fair point, but where do you go with it i think thats great all of us are capable of publishing what ever we want as a journalist i was able to see people who was sources everybody became a star. I like to say everybody is a celebrity now. Everybody has a platform and the world of the internet is flat. All publishers begin at an equal level basically. And that has created an ability for all of us to access information from the good side and access to people just thoughts that we wouldnt have seen before it allows us access to different vehicles of publications i see links every day to stories from publications i never would have visited i love that part of social media. Ill leave it with this i will throw this hand grenade into the conversation. How about this, the American Psychological association surveyed different age groups. The millennials that was facebook, they took him away i didnt want to talk to herb any way. I worry about the negative effects of social media on my mental and physical health 48 of millennials agreed with that statement think about that 48 are worried about their Psychological Health they have stress we regulate smoking. We regulate drinking we regulate driving ages should we regulated social media more isnt that the job of the parents . If they have anxiety, put down the phone put it down theyre out on a date, you see it thats not the way it works, right . What do you think . Eel let you go and then well talk about it endlessly. I think with that, theres a responsibility on the part of the parents to know what their children are doing when it comes to being online. The accounts do require you to be of a certain age before you can participate. At least as far as the age limit and age requirements, i agree. There should be some there the flat forms do at least give some credence to that being a responsibility that they want to be in place. Fair enough you have kids . No, sir when you have them, if you have them and they turn 13, well have this conversation again. Sounds good im the home i. T. Manager i got Software Platforms blocking stuff yeah. We hear about the tribulations of social media a lot from you youre the Edward Snowden of your house i shut down the internet. It gives me great power. Im like the guy from star wars. As the tax bill gets closer to passing, many northeasterners are looking to sell their homes and move to florida for the Better Weather and lack of a state income tax well get the answer from a florida realtoner xt on power lunch. I think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. I mwell, what are youe to take care odoing tomorrow 10am . Staff meeting. Noon . Eating. 3 45 . Uh, compliance training. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley the tax plan debating the economy right now could make owning a home for more expensive. Diane olick is joining us now. Reporter you can writ off things of management and management taxes rent owners dont get hit by the changes of the tax bill. They could profit from it. Home prices are already high and tax plans would cut deductions that benefit homeowners making costs higher and putting more potential fires on the sidelines. As people delay a transition, we are going to see more household stay on the renters side of the creation which could create higher rents that are available. Hovland says his company is seeing a surge in demand right now. Part of that is making investors over heated in the stock market. Some likes the expectations that rent rental demand will increase. The tax bill will cause home prices to drop thatll be in higher cost areas and thats not where most lands lords today operate. More online on realtychec realtycheck cnbc. Com. Thank you, diane olick. Our next guest says these tax bills having high earners and people looking to relocate to florida. Jeff miller, thanks a lot for joining us how many calls from a week you are getting now compared to six or eight weeks ago over the last 30 or 60 days, we have been seeing a huge increase, probably about five buyers a week or calling us down here looking at property miami is it a sellers market then it is kind of a buyers market right now a lot of the buyers are coming down to florida and looking to get out of the cold weather and wanting to take advantage of the taxes and looking for properties to move to but, do the buyers the then there are morse sellers out there selling than buying. Is that what you are describing or are you saying buyers are there in numbers no, over the last couple of years there is, you know, there is a built up of inventories so it is definitely a buyers market in miami. It is a great opportunity for buyers looking to take advantage of the taxes and to florida and get a great property down here these people got great convictions. Are they listing their home in the higher tax state like new york or new jersey while they are shopping for property in florida . I think a lot of the buyers that are coming down here are looking to sell the property in new york or need to sell their property in new york they are coming down here looking to enjoy the florida lifestyle that we have so does it have with anything to do with tax reform then or anything with the weather . Yeah, absolutely have to do with tax reform. People want to come down to florida for the warm weather and the taxes. You know currently working with multiple clients right now that are specifically looking to get out of the northeast to come down here to buy property and florida to save on tax reform. Jeff, well leave it there. Thanks a lot for your time. Well, tax reform is getting closer to becoming a reality the house in the senate is working to get a bill down coming up, larry kudlow, one big beef of the bill kelly evans will join us with an earlier look of Stanley Druckenmiller that you cannot afford to miss, stick around ct. Ct. 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. 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, the debate over bitcoin wrapping up again experts cannot agree where it is going and exchanges cannot adpragree how to price it. Stanley druckenmiller speaks out and telling you whats the biggest threat of Financial Stability right now. You may not have heard of but probably interacting with their products everyday. Well tell you who it is power lunch starts right now lets get a check on the markets. The s p 500 is setting a record. The dow is on track of record close right now. It is at 24,530 and s p 500 is 2665. 96. Boeing is now on track for its best year since 1978 and higher than seven bucks financials are on the move the xlx is at the highest level and Goldman Sachs as you can see there are the bigger winners in the sector and micron and amd and nvidia that are among the worst performers rates are on the move. Welcome to the second hour of power lunch, i am tyler mathis mathisen employers say they expect to add more to their work force etfs is seeing growth. Etf in flows hit 425 billion in 2017 san franciscos mayor has died ed lee died from a heart attack. An overwhelming number top money mine, a tax cut before the new year Steve Liesman is joining us now. Melissa, thats the best they are going to get done. 72 tells us it is going to pass 23 says it will happen next month. First, i want to show you who they think it will benefit just 5 say it will benefit workers and 44 respondents 41 says both will benefit equally. Mark elenowitz from tripoint global says u. S. Corporate tax cut will have a strong impact on gdp, Consumer Confidence and allow all blarackets. All of that is leading to a better growth forecast this is the trajectory this is the forecast over the course of the year we started in december and they forecast a 24 growth. Now, they are at 2. 8 this year. And 2. 85 for next year allen sinai says a new normal of finance growth is the bottom line who just did that . The first time i heard leaary kudlow says yeehaw well have a sugar high for these tax cuts and well pay for that i thought of 44 say both workers and shareholders and workers will benefit i will take that. Thats not bad there is an argument and i will say the argument is over the plainfield, it is more over the republican side. Everybody adpregrees that worked pay some amount of the Corporate Tax through wages. The debate is about how much we had on yesterday ait could be in the 70 or 80 more likely of other folks are thinking of the 35 range. Any should get some bumps from this of Capital Spending if you listen to one part of the internet, theyll say the tax bill is a gift to rich people and corporations and the other side of the internet will tell you that this is great and it is going to have higher wages and more hiring. What does your survey says . Whos right . I made a living listening to both sides i think there is wonderful things in this bill. I dont know if it has quite the growth kicker that some of the strongest supporters believe i think there are terrible things on the individual side. A lot of the economists i talked to think it is a terrible bill but with some good stuff inside it we are going to introduce you, larry he needs no introduction. The man introduces himself. Larry is here you are unhappy of this. First of all, well introduce you, you are here, larry kudlow along with editor and chief of the hill you did not like this and if you have held stocks for a long time and maybe you bought in all different price ranges, you got to sell the oldest stuff first which you hope gone up in values the most and tax bill is higher. It is a back door Capital Gains tax hike what makes it bizarre is mutual fund having a huge group there it is the individuals. It should be equal in my opinion. It is adam id dumb idea, i dont to raise the Capital Gains tax i want to lower it these kinds of glitches are going to be worked at. I am in favor of this bill if i am voting, i would vote for it principlely because of the work side. Was this a deliberate, thoughtful move on the part who ever put it in knowing it is going to raise revenue you know what the estimate is 2. 7 billion thats a sneeze no model can be that accurate theyre going to lose revenues on this and not making revenues. Thats a history of capital gain i know the senators putting this bill together, hes going to finish off by getting rid of it. Bob cusack, do you think larry is right that theyll end up getting rid of it, are we going to see them raising the Corporate Tax rate, does it go to 21 or 22 to be able to pay for this and a bunch of other stuff. I it does not raise that much money and republicans coming against this it is not in the house bill. It is in the senate bill they need every dollar to get to keep that corporate rate tax at 20 . They dont have much time. I think theyre going to pass this tax bill. Theyll have to pass it before the winter lets say if jones is elected, you got to have itdone by christmas and in january is difficult point what about the first in and first out i am going to bet that they str scrap that it is all negotiations in the house and senate it is getting a lot more interesting and individual investors are focusing on this as they should and the house is rallying against this. Whats going to happen with salt is this a low sodium bill or no sodium bill or what . It is going to be close to the house version because so many vulnerable republicans are in states like new york and new jersey and california. Thats why i think there is a possibility that the corporate rate tax will lift from 20 . Thats whether it goes to 21 . That was what marco rubio was saying how can it makes much a difference marco is wrong. Marco is going to be wrong on this over ten years or twenty years, your wage gain and investmes ant gains, follow, theyll keep it at 20 heck, he wanted 15 but i will say this, marco rubio, there is no reason they had to increase the Child Tax Credit from 1600 to whatever, 2,000 or 2200 that costs a lot of money and had no virtual Economic Growth effect we all love kids, everyone loves kids and including me. A lot of people in the country dont have kids. Why does he insisted on it . The way he made it up is a huge child credit but he had high income tax rates. What you are doing there is people who are not having kid kids subsidizing those that who do thats lousy tax policy i do think however one area has to be cleaned up of. I dont know what you are hearing. This Small Business pass through stuff is much different in the senate and the house and it is extremely complicated and it is the reverse of simplications i am not hearing what theyre going to do because they have so much work to do. President trump, he said 20 , initially, he was on 15 and another person that draws the line in the sand is maybe they cannot get the vote in the house and thats an argument of keeping it at 20 and finding money elsewhere. I am not allowed to talk. Steve moore and i are speaking at the Freedom Caucus tomorrow and lets see what well advise them keeping it at 20 and scrap that first in and first out. Thank you, sir. Thats what well say. Thank you, larry and bob. The ceo Stanley Druckenmiller, our own kelly evans sat down with mr. Druckenmiller in our cnbcs exclusive interview hi, tyler, we covered a lot of grounds to bitcoin and tax reform and more. His decision tomorrow is that central bank needs to stop obsessing of reaching the 2 target because they are creating a financial bubble pushing us in deflation than a 1 cpi. Lets listen. The way you create deflation is you create an asset bubble. If i was darth vader of the world, i would do exactly what the Central Banks are doing now. Misallocate resources and create an asset bubble and deal with the consequences down the road the biggest risk of deflation right now is not the deflation is where it is, they need to keep rates slow. The bubbles lead to their worst nightmare. The longer it goes on, the worst it will be i will believe this until i die if they had moved earlier or more aggressively in the early 2000s. We would have a recession but not a financial crisis as you know we had a lot of recessions the last time and we are still here we dont need another financial crisis the sooner they can stop whats going on in every market they discuss, the pbetter now, i asked mr. Druckenmiller about his performance this year which we have coming up, the answer was surprising he says taking the tax reform plan, part of it could be very good and part of it is very dangerous. I dont want to give it all away we have much more coming up on closing bell over the next two hours. I assume kelly, when hes talking about bitcoin, he sees it apart of the Central Banks actions over the last several years or decades, no i said listen, there is people adprgreeing with you but thats why they are buying bitcoin. Lets say hes not one of them. There is no Current Holding of bitcoin for this fame investor to report kelly, thank you. Thanks guys here is whats coming up bitcoin prices differ from across exchanges by hundreds of dollars. Well explain why. President trump says that one tax reform is done, a trillion dollar infrastructure bill is xt us, there is a galaxy of new star wars toys hitting the shelves. Well tell you all about that, coming up on power lunch. All right, news alert from washington, lets head down to ylan mui the medical device tax you und under, will be delayed thatll also be delayed by additional year. In a statement, kevin brady calling these burden healthcare taxes can make the failure of obamacare even worse i understand these bills would move separately from the tax reform legislation, there are republicans hoping to pass as soon as next week. It does look like this package of obamacare bill delays would still have to pass before the end of the year. Unclear of how republicans are hoping do that but at least they started the steps with these proposals. This is not within the tax reform bill. This is separate and apart this is separate and apart from the tax reform bill it is hard to keep them all straight, ylan, thats why we have you it is thank you the battle over bitcoin. Chamath made his case of bitcoin. I think of hundreds of thousands a coin probably the next three or four years and millions dollars of coins. Fast money, i spoke to roger k rog roger kerr he was not as optimistic. Roger ver. At this point, i am not realistic. If thats the case, guess what, people are not going to use it he went onto say that could run up a lot more on the headquarter term but it is a game of hot potatoes at this point. He prefers much more strongly bitcoin cash over bitcoin which is the product of the creator of bitcoin a while ago. Here is the weird thing of bitcoin is that well have smart people on cnbc to debate, ibm is going to 200 or 250. We have smart people ton network who says bitcoin is going to a million and it wont exists in three years. Or zero or both so what is the average viewers think . You cannot, you are just going on a prayer rierkt, right . No one really knows i dont know how you value it and the ways that i think of the way we value securities based on corporate earnings or a bond or we think of Interest Rates are going to be or a Company Generating earnings. Here is what i do know, the totality and a lack of a better word or the smell and feeling thats going on right now and the pons responses on social me and everything it reeks of every bubble stocks that we have covered it is a battleground. Combine our stories of the day. You made this point yesterday, michelle, that i thought it was an excellent one when you talk about bitcoin and express any skepticism out comes the wolves you dont get it. I may not the internet is correct in that sense. Maybe we should do bitcoin is tearing apart social media here is another one more is concerning is buyers are going to extreme lengths to pick up bitcoin, in other words, krip t crypto currency. People borrow money you are sure . Holy smokes people do credit cards. Beep, beep, beep. You know what i got this morning on an email, i got a guy who says to me, guaranteed 13,000 profit buy bitcoin right now in one day you said that to a a regul e regulator . It was an email. One of our other viewers sent me an ad which we posted and showed at the end of the show, it was cash out your ira to buy bitcoin. When i do, meep, meep, thats the alarm bell we dont know what they are taking out money from mortgages and doeing. We dont know what they are using it for throw away money of 76,000 people pay millions of dollars and going up to hundreds of thousands. There will be 21 millions at tops every time i bring up, whats the use case here . What are we going to do with all of this stuff . Sell it i am told that there is all these technologies and Different Companies and watson is working and etcetera, every guest we get on reminds me of a gold bug. Oh, currencies are devalued and therefore, it is going to be a store value. I heard that about gold for about 10 million years gold is out performing the s p 500. I like wearing it i cannot wear bitcoin if you are look to invest on bitcoin, you may be frustrated of the prices varied widely and why the range and what it means for investors. Bob pisani is joining us now the price difference of the bitcoin exchanges can be significant. For example, this morning, bitcoin was trading a little different prices these are larger exchanges gdax at 17,000 the difference between mattis largest 2 and everyone more on that on the smaller exchanges. Whats going on . There is several issues, first,y there is no standard way to price bitcoin. This is perhaps the most important. You got an issue to arbitrage the price differences, you need to earn bitcoin. If you want to buy bit stamp and selling coin base, you have to have dollars and bit stamp and at least, you need a lot of both of them and make themove quickly. If you dont and you have to move money across the stages, thats a mess. It could take a lot of time and the art can be lost. Finally, there is the infrastructure and there is no Portfolio Management tools that allow you to execute and you cannot push a button and make it happen the challenge is how quickly can you build infrastructure it is one of the big challenges and i am sure a lot of companies are looking into it. Back to you, michelle yep, i bet they are thank you, bob. Crude oil is taking investors on a wild ride this month point coming up, well tell you our winners in the energy space. Biotech, beaches and big calls to buy theyre the top analyst calls th that you need to know about. It is street Talk Straight ahead on power lunch. Its all yours. Wow record time. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. Directv has been rated number one in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like wet grocery bags. Getting a bad haircut. Overcrowded trains. Turnstiles that dont turn. And spilling coffee on themselves. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv. And for a limited time get a 100 reward card. Call 1800directv take a deeeep breath in. And. Exhale. Aflac and a gentle wavelike motion. Liberate your spine. Aflac and reach, toes blossoming. Not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. So he had your back . Yup in just one day, we process, approve and pay. One day pay. Only from aflac hello everybody, i am sue herrera. Authorities in new york announced federal charges for akayed ullah who set off the bomb on new york city subway on monday Court Documents say he mocked President Trump on facebook. Akayed ullah went to the authorities yesterday morning with a purpose he had strapped to his body an ied, a pipe bomb that he made using a metal pipe filled with metal screws and held together under his jacket with wires and zip ties roy moore and his wife road their horse to cast their ballots in the states special election to replace Jeff Sessions the race between him and doug jones is too close to call take a look at this. A woman snorkeling in the caribbean was bitten by the arm. The shark swims up and clamps down on her arm and causing her to cry out, of course. She was not seriously hurt my question is, why did the husband take the photograph and why didnt he swim over and get the shark. The womans exhusband was bitten by a shark without helping. This is why social media is ruining the fabric he got six likes. I am glad he got the instagram shot though. It is viral there you go. Back to you guys. Time now for street talk. Recommendations on the stocks that we hope you like. Well, first up is verizon, upgrading verizon. Record low post should continue 2018 price increases indicating little competitive escalation and another big potential boost, tax reform, price target at 61. They add it to their top picked list, nomura. Now they are focusing on other launches next year they boost the target of abt and up to 16 . The third stock here is conagra. Also, tax reform animal lalysts pointing to conagra as the largest beneficiaries. A name that i never heard of, maybe you have i have not. Bluegreen vacations that focuses on driving to resorts. In hawaii, you cannot drive there unless you got some magic car. It hopes this company is given a mini timeshare company, and getting the half sales of owners the stock trades discounts for fears. Their target price is about 16 upside on bxg, bluegreen vacations. Tyler. All right, folks, thank you if tax reform passes until the end of the year, could the trillion dollars being the pipeline in 2018 straight ahead 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. D deangelis. The eia is going to report inventories tomorrow inside the support, well focus on production. Now, will the barrels continue to rise. Tomorrow is opecs monthly report is due and well have a little bit of a read on production as well back to you lets call this an energy come back. Energy stocks have been higher marathon oil is up 31 the producers are also doing pretty well. 40 jump in 90 days. Diamond back Energy Pioneer natural resources, all up and get this, all you hot tech traders. The fang group of stocks, facebook and amazon and google and whatever they are up about 10 as an aggrega aggregate. Fang, the Diamond Back Energy company, thats their ticker a much of the focus on the Trump Administration has been on tax reform there is also a new talk of a long awaited infrastructure of bill passing next year what are the odds and how stocks benefited and how can you talk lets talk about this with Katherine Thompson every six months we meet and we talk about the infrastructure bill do you think it is going to happen what do you sthink . The more interesting is whats going on the state level. If you look over the past 24 to 60 months, we had 31 states in the past significant and creative funding and not just the gas tax increase to bolster longterm funding. They got tired of the feds if you look at what the feds have done, nothing you got a tax hike repatriation does not work that money is not available exactly i understand they are done with the federal government and they are tired of waiting. At the state level, they are doing Public Private partnerships we are worrying about . Yes, it is a combination. Some people are a little tired than that so they have done things if you look at the state of georgia and they done things like they had a hotel tax or put a floor and they index the gas tax and add in exile tax how do you index a gas tax in. So you have to create a floor so if you look at for instance, state of california, they got into trouble because they tied their infrastructure funding to the price of their oil which is a great idea when oil was going up when it went down, it was disast disasterous. California was one of those states that passed meaningful changes. Whats the infrastructure plan that they talked about. If states were the cake, is this the ice sing . Absolutely. Lets Say Something gets done and we do the infrastructure bill what are they going to do with it, roads or what companies . State d. O. T. S have a big back law of state Construction Projects these are projects thats put f off for literally 15 years if you look at the ones thats under performed, it is the aggregate man. You have to use aggregates in every form of constructions. Thats a fancy word getting aggregated to my stocking this year you are definitely getting accoladed. Some of the names some of the top names Martin Marietta and Summit Materials and whether there is interesting funding from the state levels. Katherine thompson, thompson research, always a pleasure. Next time well talk rvs sounds good coming up the top inc. Company tells us how his stock pulls in half a billion dollars in revenue power lunch is back in twominutes. So how old do you want to be when you retire . Uhh, i was thinking around 70. Alright, and before that . You mean after that . No, im talking before that. Do you have things you want to do before you retire . Oh yeah sure. Ok, like what . But i thought we were supposed to be talking about investing for retirement . Were absolutely doing that. But theres no law you cant make the most of today. What do you want to do . Id really like to run with the bulls. Wow. Yea. Hope youre fast. I am. Get a portfolio that works for you now and as your needs change. Investment Management Services from td ameritrade. 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. Whats the secret to turn a no into a yes. When is the time to have some fun in the office . I got some great answers to all the questions which will help you run a better business. Check on nbcbussiness. Com to help you learn fast and go further. If you listen to that cereal broadcast went back from 2015. The Company Behind it mail chimps the company is expected to bring in more than a half a billion of revenues joining us now is the cofounder of mail chimps first, congratulations, you must be happy. There is no relations between mail chimps and survey monkeys, is there we are enemies. For people who dont know what you do, explain in a short paragraph of what you do and how you make money doing it. We help Small Businesses build their brands and sell their stuff and help them with marking. Using what . Emails yes, we have been expanding to other channels like social media and videos and direct mail you have built this business slowly you are not, johnny coming lately it feels like a big blur to me, yeah it is been 17 years you have done that. You have never relied on vc funding. I dont know where that means you relied on . No funding. I think the othelder days vcd not understand the model they did not get the sass thing and Small Business thing we never could really agree. How do you get through the consumers these days we were having conversations that each of us have three different emails and one addresses where is all the marking may get. You sign up the fake email address that you never open up the email address it is different devices thats exactly what is making us changing ourselves and people are on multiple devices and tension spans are spreading out multiple apps. How do you get through . What have you learned that works . You create great Creative Content and you keep on pub iss lishing. What makes the contents great, humor anything. It is creativity and anything thats funny or useful how do you get past spam . Be useful and people will like your content and not block you. Can you remember one of your campaigns that stood out being really successful and one that you thought was going to succeed but bunked i thought cereal was going to be nothing we got that gig because we sponsored another podcast of the same producer. They wanted to give us the first dibs on cereal and that turned out to be a success. Email is the best roi for ecommerce and Small Business how do you measure fef effectiveness of that campaign sales they would have to click and buy it the last series, we made about 55 billion in revenue in sales. Without giving away the secrets of the temple, how do you get paid there is no secrets it is the size of your database. We grow and our customers grow most of them feels like it is a proposition 8 ride of passage, they feel like they made it when they become paying customers we debated of the question of whether social media is leading us closer to the end of the world, tearing apart the quote, social fabric. Do you have a thought it probably us. Ben chestnut. Congratulations on your recognition as inc company of the year. Why star wars merchandise is a force to be reckoned with. Thats still ahead on power lunch. Star wars has been a massive toy brand ever since the first film premiered in 1977 with the last jedi opening this weekend, disney is making a major merchandises push going light years beyond just those Action Figures Julia Boorstin is live with more star wars has sold more toys than any other movie franchise ever an estimated 1. 4 billion worth of star wars toys are expected to sell this year. Thats a huge win for hasbro which makes more than half of star wars toys sold. If you include other categories which includes video games, apps, and Branded Products such as clothing, ttpm projects 3 billion worth of retail sales this year. This years lineup also aims to expand star wars appeal. There are more tech toys including a droidbuilding kit, battle drones that look like aircraft from the film, and a 200 lenovo augmented reality headset which includes a light saber, of course on the other end of the spectrum, theyre also partnering with Fashion Company rag and bone most of those are selling out including 700 boots now, these products arent just generating revenue for disney, theyre also arguably marketing the film guys, back over to you yeah, ill bet. Just watching that whole segment that you just did helps to push the story, right thank you. Raising awareness yes thats it. One jedi at a time. Julia, thank you all right. Lets stay on this time for trading nation. Lets trade disney will that stock see a boost from the Star Wars Division matt, what do you think . I mean, can star wars sort of outpace and outdo, and outweigh some of the other issues disneys had specifically the espn issue well, its kind of funny. Every once in awhile i think to myself with these star wars movies coming out more frequently, will they ever reach kind of a saturation point and lose their appeal . Then i think about it and say thats not going to happen any time soon. Well have to see how this plays out going forward. It sold off in the spring and fall im sorry, in the spring and summer but its rallied back nicely and that rally is taking it above the trend line going back to april now moving to the 110 level. Thats a level it hasnt been able to break. Its come up and pulled back from that level twice before so whether it be star wars, thats going to be very positive for the stock. Could really get some momentum behind it. Very nice and mike, i think that matt just inadvertently compared star wars to the mcrib we get excited when it comes around every day, not so much but is disney a great stock to own right now or if you were an owner, would you sell it i would not sell it were thinking about buying it right now. I think this combination of assets between 21st century fox and disney is a great one. This is important because disneys just bringing out some new streaming video and Ondemand Services it adds to their global Cable Networks it diversifies away from espn. On top of that it gives the majority ownership of hulu when i look at the stock, it has lagged the market the past two years. Its a Blue Chip Company it trades at a discount. Investors like scale and traditional media companies. I think this combination of asset is the shot in the arm this disney stock needs to get itself going again i would be a buyer right now theres been a lot of talk about star wars right now. Dont forget, cocoais in the theaters right now and its doing really well. Put on star wars on top of that, it could be a big Fourth Quarter for disney interesting look there. Thank you, both. Appreciate it. We are watching disney and star wars for more trading nation go to tradingnation. Cnbc. Com. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. Daily Price Fluctuations of individual stocks can offer trading opportunities. However, if youre unhappy with your returns while trading actively, consider taking smaller positions over a greater investment time frame. Evaluating trends over multiple weeks rather than hours can help a trader locate more consistently tderaable trends while possibly trading less frequently directv has been rated number one in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like wet grocery bags. Getting a bad haircut. Overcrowded trains. Turnstiles that dont turn. And spilling coffee on themselves. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv. And for a limited time get a 100 reward card. Call 1800directv i thwell wait. What did you meetthink about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Take a deeeep breath in. And. Exhale. Aflac and a gentle wavelike motion. Liberate your spine. Aflac and reach, toes blossoming. Not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. So he had your back . Yup in just one day, we process, approve and pay. One day pay. Only from aflac just want to tell you guys that bitcoin week on fast money continues tonight remember his last call 40,000 to bitcoin by 2018. Well get his take on that also the stellar rise were seeing in todays session for light coin so that pop in bitcoin weve seen, so two days ago light coin is where it is today. The story thats getting a lot of attention is the comment that social media may be destroying the fabric of society. And we can debate it all day long i think social media is not going away you can hate it. Its not going anywhere. I think we should stop calling it social media. Sometimes its just media now, right . Its just media. Drop the social media. Its a nice marketing term but i also think its the automobile in 1920 i think its new people are getting used to it. Were figuring out the rules of the road some people may get run over the automobile, though, is regulated. Social media is eventually. I hinted that earlier. The thought is social media will also be regulated then i agree with the comparison. I thought you were talking about bitcoin when you were making the analysis about the car. No. That, you know, theres going to be a new round of cryptocurrencies that are going to be better than the old round. I think i just come back to the idea that the internet makes everyone an equal publisher. And some are better than others. And some are kinder than others. And some people use it for good means and some people dont. Its not the platform, its the people its the people deeply philosophical. Get rid of the people, the internet would be great. Thanks for watching closing bell starts now. Hi, everybody. Welcome to the closing bell. Im kelly evans. And im wilfred frost in for bill griffith. Welcome thank you very much a rare interview today with Stan Druckenmiller were going to get his take on bitcoin and his favorite stocks right now. A large order for tesla. Pepsi making a big bet well tell you whats behind that move. And health care. One of the best performing sectors today as talk of consolidatio