Transcripts For CNBC Power Lunch 20180104

Allowed Legal Marijuana to flourish a number of pot stocks losing their buzz big time. What now for this budding multibillion dollar business power lunch starts right now your love is lifting me higher than ive ever been lifted before well, the weather on wall street may be frightful, but inside the exchanges it is nothing short of delightful. Welcome, everybody, to power lunch. Im Tyler Mathisen another historic day for your money. The hits keep look at this chart, will you . Look at that oneyear gains, 25, almost 26 25,000 now on the dow for the first time ever. Want to know what it was back on the, the day of the crash in october of 1987 . It was about 1,700 think of the gains, the money made since then. Financials, goldman, jpmorgan, American Express, powering the dows tripledigit gains at this hour not just by the way the dow. Nasdaq and s p 500 also new record intraday highs today. Small caps, they came along for the ride russell 2000, intraday, alltime high retailers zumiez helping fuel gains there. Check out wall streets fear index called the vix lowest level since december 20th winter storms, turmoil in the white house, ah. Doesnt bother it. Seventh time ever trading below nine today right now at 9. 18, melissa tyler, im melissa lee at the new york stock exchange. Thats driving the recordbreaking rally. Bojangles southern jo bob pisani joins me on the floor. Momentum in the past month, continues higher remember, strong economic numbers, adp, helped markets this morning we want to remind everybody this is a global rally. Look whats going on around the world. Chinese authorities maintaining 6. 5 gdp growth. Helping asian markets. Nikkei hitting a 26year high as well today the euro up strong nearly 2 euros own businesses reporting best numbers activity since 2011 the dow jones, of course, 25,000 ill give the adp credit for that a remarkable number. Take a look. Mentioning the banks earlier new highs across the board all the Major Money Center Banks at newheiss. A long, long list and industrials as well. The breadth is strong. Fedex, norfolk southern, all strong materials strong as well a story all throughout the year as melissa noted earlier whats not on list, interesting, tech stocks. Cisco, only major one thats at 52week highs now. Why the rally . Its not incomprehensible. Beside the strong economic numbers, the tax cuts, people increasing numbers Global Economic growth, Central Banks on a slow rate hike payout and melissa, talked about high evaluations out there and yet when the numbers are strong Global Growth is strong, you can have high valuations for a long time. Earnings estimate if they continue to go higher, what weve seen on wall street, that e, right, denominator goes down. Right. Helps in terms of valuation a rally, across the board, around the world, you noted. A peculiar situation for the market with low volatility everything is smooth sailing and moving higher. Everyone asking, whats going to kill this we discussed this brefore. Recessions kill this. Nobody sees that coming. And when the fed suddenly reduces rates. An issue in the past economy overheats maybe in march hear from the fed. A lot more concern right now thats a mock story. Thank you, bob pisani. Thank you. Staggering statistic the dow soared 5,000 points in just under one year. And five stocks, just five of them, fueled most of those incredible gains dominic chu with the names, big winners, in the run from 20 to 25k. Tyler talk about a big chunk of them. Talking half of the gains in the 5,000point run are just those five stocks well mention here look at this that run between dow 20 to 25,000 has been led, no surprise here, by those alltime highs in boeing, aerospace giant. Added nearly 900 points to that 5,000point run. United health group added 429 points of its own. Caterpillar, 407 3m, 406. Home depot and mcdonalds tied at the 355 mark. Those five stocks, biggest part of the gains in the dow. Not just the dow were talking about. Record highs in the nasdaq and s p 500 as well. Economic this out. As we look at the s p 500, some of the biggest names propelled the moves to 2,700 from 2,600. Its been a lot of beaten down names. Retailers, kohls, up 19 between the run 2,6 hrn a00 and0 halliburton, and up. Look at some of the moves. We want to find out whether or not we are seeing that kind of rotation happening remember the big names apple, facebook and amazon market up roughly 4 ish in that time apple lagged facebook, up 2 . Amazon, 4. 5 more market performer. Michelle, talking about leadership, these stocks mattered the most but the smaller cap stocks in the s p are producing the biggest gains percentagewise. Seen this as the old school stocks. Yes. Right light a lot of industrial names. Energy. Exactly retail. Right. Cool. Thanks, dom. You got it. President trump weighing in, taking a lot of credit for the market rally eamon javers has more. Hey you heard all the guys talking about the new highs on the dow one of the things were seeing at the white house, is the fred, president , a president who likes to talk about the dow. Havent seen that before and making a call where were going from here. Take a listen to this tape. We broke a very, very big barrier. 25,000, and those say we wouldnt break 25,000 by the end of the eighth year and were in the 11th month. We broke 25,000 just as we came in now have to be a little careful. As we walk out, maybe it goes down you always have to be careful with that, tom but we did, in fact, break 25,000 very substantially break it, very easily. So i guess our new number is 30,000 but what it means is, every time you see that number go up on wall street it means jobs. It means success it means 401 k s from youri isf you hear the president , 30,000 see in that bears fruit. Meanwhile, all this happening as the president and his lawyers are waging an extraordinary plot to stop Michael Wolffs new book sent cease and desist letters to the publisher and author demanding this mr. Trump demands you immediately cease and desist from any further dissemination of the book and saying actual malice, reckless disregard for the truth and can be proven by the fact the book contains in the introduction it contains untrue statements and moreover the book appears to cite no sources for many of its damping items about mr. Trump. Clearly, a president extraordinarily frustrated with this new account extraordinarily frustrated with former chief strategist steve bannon but very happy with what hes seeing on the dow today back to you. Thank you markets keep hitting new highs despite all the drama at the white house. Does that not mean as much as other things like tax reform deregulation a businessfriendly climate in washington . President trump, you heard a moment ago, now aiming for 30,000 on the dow. And one major market player, david tepper, still bullish on this rally saying the market is not overvalued lets question that with jim mcdonald, chief investment strategist with Northern Trust asset agent and a developer with qs investor. Mike, start with you put the 25,000 number into perspective for us obviously moving from 20,000 to 25,000 is no small feat. Its a, a 25 gain in a year pretty good. It is pretty good, and to put it in perspective we have to remember that the dow is only 30 stocks when you look at the broader market, its not just the dow thats done really well. The s p 500 finishing the year up over 20 last year and the nasdaq well over 30 but investors have to look at that in context of history we just crested an important threshold, records on new highs but the fact the s p 500 just passed over 300 since the march 2009 lows. That makes this the longest expansion in the postwar era. When you tie that in, that valuations, rising across the board, and the fact that when looking at both 1999 and 1929, valuations are at the third highest level in history we think that the economic expansion will continue. We think fundamentals are still strong in the u. S. Economy nonfarm payrolls, adp is there a but coming here . But what there is a strong but there. Yeah. And the but is, that investors have to be sober about this market. The fact is, the markets becoming really narrow if you look at those stellar returns from last year, its attributed to a couple stocks. 55 of the nasdaqs return last year was due to five companies. Do i sell ed s p do i sell what do i do stay invested still like equities but rebalance. Takes profits out of the tech sectors that have done well and get into value added consumers and staples. Positive words from your associate but heard saucautionay ones where do you come down on this constructive on the market. Seeing better earnings culling through. The highest confidence in our outlook that several years the treasurys gone nowhere and commodities complex is ripping in recent weeks. All a sign the Global Economy has momentum and to the issue of abrupt, we are seeing this rotation going on within the market i dont think that the market are in an unhealthy position here and still overweight risk. How about the issue of value . Which your associate pointed to. Mike pointed to. There is validity to that within technology, for example were staurting to look at stocks that have underperformed we think maybe are positioned for better performance going forward. We do want to rotate out of some of the areas that have had great performance into some of them that are a little less expensive. Like what well, weve done that within technology at the major asset class level over the last year moving out of the u. S. And into developed s and em and paired back bonds which had a great run. Jim, mike, thanks thanks so much. You bet. Days of brutal cold in much of the country turning into a major snowstorm in the northeast. When is it snow going to end angie lassman, wtvj has the forecast. Continue to watch this sitting off the east coast you mentioned cold air derc definitely in place. The snow, of course, causing travel issues across most of the northeast and you can see extendsing all the way down into the middle atlantic. We still have more snow to come but its tapering off. Were watching it shifting north. Still look all the way up towards maine. 12 inches still to come on top of what weve already seen still not a lot for maine, but we continue to watch anywhere from a foot to a foot and a half when all is said and done. Similar conditions out towards long island. Notice your satellite and radar over the past three hours. Focus on just how much of that swath is snowfall. Not a lot of rain. We did see that warm sector. Kind of tapered off. As we continue to look at where temperatures landed through our day today. Highs, rarely as we look to our west, much colder look towards north dakota that cold shot of reinforcing arctic air is headed our way and will do a lot to us especially all the way up and down the eastern seaboard that will wauz cause problems. Snow to ice, not good for travel conditions already seeing trouble today. Guys, back to you. Angie, youre from miami . Arent you i am. Hows this weather working for you . Im shivering in the studio cant complain, though. We cant warm up all week thanks, angie. The stock market soaring during the Trump Administration in the nearly a year since he took office. Dow up about 26 , mentioned earlier. The economy, of course, one of the main reasons for the gains the case for u. S. Growth is next, and as he head out, take a look at stocks leading the dow today. Look at that ibm leading the way. Ge on the list amazing. The top four. Crackin 1850 i had frequent heartburn, but my doctor recommended. Prilosec otc 7 years ago, 5 years ago, last week. Just 1 pill each morning, 24 hours and zero heartburn. Its been the number 1 doctor recommended brand for 10. Straight years, and its still recommended today. Use as directed. Welcome back to power lunch. Check out the big board here at the nysc 25,100 or so high in the session adding 5,000 points in just under one year President Trump speaking earlier saying i guess the new dow number is 30,000 of course, about a 20 move from here ty. Thanks, melissa why has the stock market had such a strong rally over the past year . Its the economy, steve. Steve liesman, even more positive signs out today. You know, tyler, you know this werent around a long time some stock market are built on the hot air of hopes and dreams. This one, though, has solid Economic Data underneath it and more prove this morning with an adp report showing 250,000 jobs created in the private sector in december more than the consensus and more than economists expect from tomorrows job report from the government adp adds to a Running Series of economic surprises seeing Goldman Sachs economic surprise, index surge to new levels. Bottom line, the street keeps underestimating the strength of the Economic Data and the market rides those surprises higher all of that adds up to Overall Economic growth that for three straight quarters looks to be running well ahead of potential. Second and third quarters of the year offering the first consecutive quarters of 3 plus growth since 2013 and the cnbc wrap it up for the Fourth Quarter, still healthy at 2. 7 growth those kinds of numbers come along with good corporate profit growth, ultimately the fuel of stock market gains all of this the result of policies from the president , you may ask . Certainly hes taking credit for it more than likely a combination of forces put in place before he took office. Some effects from the Better Business confidence, his election ushered in as well as Wealth Effects by the stock market debate for a long time i would be, feel more comfortable judging the economic effects of the Trump Presidency after another year or so because that First Quarter hes just in office, but definitely a confidence effect and whether or not thats shown up in economic spending and business inventories is one question and the tax cut see what happens with the tax cut. A big part of it. Give him some credit some ahead of that, some pricing that in or discounting those tax cuts to come some of that he could be given credit for, too. Dont move. Bringing in founder of at e weekweek ly standard. Seems a disconnect between the folks here in new york and in washington i read the stuff that comes out of d. C whether the daily emails from different pubpublications, twitr et cetera. Seems washingtons hair is on fire journalists barely can wake up, an aneurysm over whatevers happening at the white house and yet the stock market is going gang busters you heard steve talk about it. Economy Getting Better taxing going down. Does that make sense how do you feel about how things are going . Listening to you the last 30 minutes i feel i should go out and sell all my stocks. Why i havent heard this much bullishness since i dont know 1929, probably. Got it. Contrarian what youre saying. Someone said earlier, valuations longest since 29 and you think it will go on and on because of a wonderful tax cut, sending out checks to people could be could be. I dont know go ahead. You want to be cheerful. And expenditures but keeping u. S. Corporations credible in a global world. And sending out checks for 1,000 suggests they didnt have enough cash to be competitive being competitive means investing. No. About staying here in america. Well see how much that im not against the Corporate Tax bill i was against other parts of it bill, well see what happens happy the market is up like everyone else, directly, indirectly i have investments in the market and we can give trump credit, obama some credit, the Business Cycle a lot of credit and the underlying economy im a conservative its a great thing the federal government doesnt control the u. S. Economy as much as other governments control other economies, meaning we can have an incompetent white house have a mixture of policies, and the economy can chug along because of innovation and the market working i im all for that. Dont get me wrong. I want to ask a Political Economic question. People talk about the reality that President Trump lives in. The reality the democrats live in they think theyre going to ride President Trumps negatives back into the white house and control of congress. If we have 3 plus growth going on in the u. S. Economy, a surging stock market and no guarantee s this will be the cas when either election of consequence rolls around isnt the president going to be reelected almost no matter what hes tweeting at the time . No. The economy was good in 94. A nice rally during the clinton years and democrats lost a ton of seats voters care about the economy. They also care about other aspects of governance and i think just as a practical, political scientists tell you the single best prediction for an offyear election different for a president , but offyear election, the best single indicator the president s approval rating. Flip it other side, amazing. Had a great economy a great run in the market. A lot of luck, i would argue, avoiding Foreign Policy crises im happy an and none the less, a 40 approval rating. What happens if theres a correction you dont like to think about it 30,000 end of this year. 35,000 next year 40,000 the next . What if its a long way to go. I like teasing you guys like teasing you ive been through a lot of these things, and ive lost a lot of money along the way in my 401 ask 401k ten years ago my wealth was cut in half. I cant afford that this time because im that much closer to retirement and theres a lot of economic time, believe me, between now and 2020 a lot could change. Totally. I sense you are a trump skeptic at the very least, but dont you think that his administration has created a much more businessfriendly climate in which Companies Feel more comfortable to operate than they did a year, a year and a half ago i think yes. Youre right the business side, the businessmen ive talked to, used to get up every day of the Obama Administration and worry what the federal government would do to them. Now get up, think the federal government will leave them alone and maybe give them a little bit of a hand. That matters more growth in obamas than trumps year so far and point out the bulk of the great stock market were talking about happened on obamas watch recovering from the previous republican administration. Im not touting those points im a republican and conservative, but, look, well see what happens obviously on the economy and obviously by 2020, if hes at a sustained Economic Performance and no Foreign Policy disasters people might overlook a lot of things people like me find distasteful about the Trump Presidency three years is a lot of time. Well see who knows. Maybe it will be eight. Stay cheerful the dows going up were cheerful. I cant watch politics. I should watch cnbc 24 7 thats right. Cheerful but cautious. Cautiously cheerful cheerfully cautious. As the situation these days, another watchdog out of washington, d. C. Eamon javers has breaking news. Reporter the Trump Administration about to take steps to vastly expand y5u6 shore oil drilling from the atlantic to the arctic a white house official confirmed for me a few moments ago announced by the interior department the full announcement will come later in the day the note of caution, this is a draft proposed plan that theyre going to roll out and comes with all of the caveats of any other administration piece of activity that theres a 60day Comment Period industry has an opportunity to weigh in looks the direction theyre going in is more offshore drilling including off of California Well wait for the full details of this to look at what the impact on the state of california will be but the oil industry should be happy about a lot of this. Well wait for the full details. Meantime, a white house official confirms they will take those steps. Back to you. Yep eamon, thank you. That of course, eamon mentioned, not seeing much reaction in stocks. Meantime, frel government saying it will get tough on marijuana just days after california made it legal will the budding ha, ha, budding industry go up in smoke . Well talk to the man who just changed his latin etf into a marijuana atf and financials leading the way. Goldman chsas, jpmorgan, American Express all higher. Power lunch will be right back hi im joan lunden. Todays Senior Living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. And theres never been an easier way to get great advice. A place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a Perfect Place. A place for mom. You know your family we know Senior Living. Together well make the right choice. A potentially huge blow for the Marijuana Industry Jeff Sessions, attorney general, rekriscinding the policy allowig to use it for Recreational Use even though still technic little illeg technically illegal at the federal level. This happening only a few days after california legalized it. Reporter reaction to the decision swift in the market, social media and written statements colorado senator cory gardner, with no prior notice of congress the Justice Department trampled on the will of the voters in colorado and other states. One california cannabis entrepreneur tells me it could be devastating and another owner says we remain optimistic about the state of tfof the industry the Vice President of marijuana business daily says the move will sow more seeds of uncertainty and businesses could be in for a bumpy ride speaking of businesses, some cannabis stock sliding on the news shares of scot ascots miracle down a quarter percent or two, and consolation brands, shares of that are down about 4. 5 . But other companies maybe benefitting from it. The executive Vice President at aurora, a Canadian Cannabis company, tells me the effect will be a positive one for large canadian producers like aurora, because it will drive u. S. Investment and investors north of the border to publicly listed Canadian Companies melissa, back to you all right thank you very much, aditi. Well, marijuanarelated stocks as well as etfs are up in smoke today based on this news including the recently launched marijuana focus alternative harvest etf. Actually spoke with the funds creator earlier this week on power lunch. With us now again to talk about the potential impact of this decision and what it could mean for his etf. Joining us now, sam, great to have you with us again. Thanks for having me. Theres a couple of ways of interpreting whats going on here at the Justice Department first that they intend on a widespread crackdown on dispensaries, businesses dealing with marijuana, or just looking to chill the industry. How are you taking it . The market is telling me that theres going to be a crackdown here well, as the originator of the first pure u. S. Play cannabis etf were excited about it and excited because we think it will help further legitimize the Portfolio Companies that made their way into the alternative harvest etf. We are very focused on cannabis biopharma. Derivatives used for very, very important medical work sump as treatment of cancer, glaucoma, parkinsons sorry to interrupt. How does Jeff Sessions rescinding the obama era policies make marijuana more legitimate i think it makes the companies that make their way into our portfolio more legitimate why well, we have 200 Million Dollar minimum cap values. Aurora as mentioned before is almost 7. 5 of our portfolio. Youre not making sense to me Jeff Sessions says he thinks this stuff is illegal. So to meep that, a negative able to do less of what they intended to do we still see a Global Expansion of, and this is a Global Portfolio by the way, of the use of medical marijuana, and there are so many important developments being done that, you know, the train had left the station when it comes to harvesting the value out of cannabis and its used in the melted field. Sam yeah . Sam, let me put the question this way im also confused by this whole notion that this is going to help your companies. What companies have actually built their businesses, built their models, based on the memo being in existence some companies have worked for many years, gw pharma, working on a, a treatment for epilepsy using substances not growing marijuana. It doesnt depend on that memo can you talk about the companies built around the existence of the memo and those that existed prior . No, i cant i can tell you that 34 of our portfolio of u. S. Companies. The largest being canada, 41 . But clearly it has a global footprint. Its an indexbased investment strategy, which means that the index in our producer, prime indexes, will continue to rebalance the index to meet obviously all of the government regulations and Portfolio Companies that actually meet the requirements, which are sam, let me ask you one baseline question, if i might. Would the market for these products and for these companies be bigger if the sessions statement hadnt come out today than it will be . In other words, would recreations use, semilegalization of marijuana, help this industry and your investments . I mean, certainly on the short term but this is a longterm play here that is, for the adoption of this important cannabis crop for the use in these multiple uses across the globe and so, sure it has an immediate effect our etf was down i think at 10 today. Weve traded over 5 million shares its recovered back to now about 3. 5 clearly investors see this is a longterm play in a, a medical breakthrough in many, many fields and yeah . Whats the assets under management today do you know . As of last night about 270 million under management we launched the fund one week ago, with 5. 7 million. So clearly, theres pentup demard demand, a lot of interest in it. Those i speak to look for all the medical breakthroughs. How much did it go up since tuesday . 74 million that day wasnt it . Yeah. Were up about, almost 200 million. Since tuesday since you appeared here on tuesday . Yes thats correct. Let us know how it does overnight in, and by the end of the week. Absolutely i will. Thanks, sam appreciate it. All right thanks for your time. On the east coast you know this already thousands of Flights Canceled today as a cold front, this is a cold front wow turns into a major winter storm. As much as a foot and a half of snow expected up in boston we will get a live report from there, and much more on the markets as milestones are falling, seems every day nasdaq 7,000 s p 2,700 and now dow 25k. We willfoe right back. Ellyfish, prevagen is the number one selling brainHealth Supplement in drug stores nationwide. Prevagen. The name to remember. Announcer cnbc news update sponsored by comcast business. Built for business hi, everybody. Im sue herera your cnbc news update for the hour a monster snowstorm causing a lot of problems at new york citys airports, laguardia and jfk, suspended flights due to strong winds and whiteout conditions the storm hitting other areas of the northeast is a fullflemped blizzard expected to dump up to 18 inches of snow in more areas. More on that coming up. And avalanche killing a mother and 11yearold daughter in italy it happened on a ski slope part of a nineperson key group. Everyone else survived that accident. And nailbiting election, in virginia its over. David yancy win as seat on the house of delegates after his name was picked out of a canister in a tiebreaking drawing. His victory allows republicans to keep control of that chamber. Yancys challenger a democrat initially won by just one vote and a recount was ordered. And u. S. Attorney general Jeff Sessions as weve been telling you appears to be targeting marijuana. The doj overturning a policy that had allowed legalized cannabis to flourish without federal intervention the decision comes as you know just days after california began el issing recreational marijuana. A story well follow all day today on cnbc. Thats the news update this hour melissa, back downtown to you. Thank you and look at markets now. We mentioned excuse me, recordsetting day in the markets. Looking at the dow higher by just about 145 points. 25,067 leaders on the dow, merck, ge, ibm and dupont ge up about 6 so far this year. Amd, topping s p 5 hvrn and l00d tyler . Thank you very much, melissa. The winter storm could bring up to a foot and a half of snow, weve mentioned to boston. Contessa brewer drew the lucky saw it live in boston reporter i am one lucky lady you got it right, tyler. What else is almost record highs, no the quite. The storm surge in boston. 4. 7 feet 0. 1 short of the record. People mostly got smart about it and moved vehicles out here in downtown boston, there is a lot of activity for one thing, theres people who have been stuck here cant get out. Flights grounded you can see why. The visibility is horrible the gusting winds, in some places along the coast, already reported gusting up and over 70 Miles Per Hour were really feeling it now. Still, people are keeping a persistent battle against the snow coming down guys with snow blowers and plows and armies of snow shovels, just shortly ago you see the mountain of snow here that the plows created in this intersection a driver slid right into it. No way out it took an army of five guys and their snow shovels to not only clear the snow but get him out of here. Theyre expecting up to 18 inches tonight and then that bitter cold. Hard to believe its going to get worse than this, but its not expected to let up until dinnertime guys contessa that snow stick around, too. Stay warm. Any constellation, her hat looks really cute. The traffic was a killer. All right storm is wreaking havoc on flights. More than 4,500 canceled at least 10,000 delays. Insight into how the bomb cyclone storm is affecting the airline industry, jamie baker. Good to be here. Storms happen every winter. As a result of this one, take down revenue and by how much is that right . Not necessarily theres very little Leisure Travel taking place this week. In fact, a fairly slow week overall for the industry though there clearly are some business travelers disrupted the thing is, business travel, you reschedule its not like you have the rug pulled out from under you and you have to wait until next summer for another shot at your vacation the majority of corporate revenue related to cancellations will now simply be flown later in the quarter got it. So i understand that in terms of timing, its not so bad as if, for example, it had been the week before christmas, around thanksgiving, et cetera. How about the length of it and how widespread it is across the country . Give me context compared to what weve seen in years past. How big and bad is this . Well, look, its certainly, you know, a a meteorological mayhem condition at the moment, but the fact is, you know, in the past, airlines would try to power through events like this, until the airports shut down and it would take several days to recover today, airlines have become much more adept at shutting down well in advance positioning crews and airplanes in ways that make the Recovery Process much quicker and much more reliable. Im not looking at a Weather Forecast at the moment, but my guess is that, you know, a topclass operator like delta could well operate each and every one of its mainline flights on saturday maybe even full flight complement by tomorrow ten years ago, unthinkable on the storm, jamie, is there a Silver Lining . A harsh winter may mean spring break may look better and people may want to go and travel, go away a good question cold snap its can be beneficial as long as they dont create longlasting economic damage like the tragedy in puerto rico we saw the reality, with the stock market strong and with temperatures, you know, plummeting, consumers are likely to spend more, not less, on the upcoming spring break. Think about it youre colder than youve ever been youre potentially wealthier than this time last year when the kids go on break at march, will you sit at home and make a sandwich are be itching to get to some place warm . I think the latter is more likely. You paint a good picture there, jamie thank you, jamie. Appreciate it. Jamie baker. My pleasure safe getting home, everybody. You, too. Theres a broad rally in wall street. Many Retail Stocks are sitting it out macys, foot locker, kohls all down big well talk to a former walmart exec. Whats ahead for 2018 in the industry stay tuned siren wailing barry murrey when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Evaluating patients remotely is where i think we have a potential to make a difference. barry murrey we would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. As we get faster wireless connections, itll be possible to be able to operate on a patient in a way that was just not possible before. When i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . Another great day for the market industrials higher 153 points. S p by 13. Nasdaq up 15 above 7000. Dow industrials 25,000 ge best performing member of the member, gain of 2 worse performer intel, issue with its cpshi well talk about that more on power lunch, just laters dont move across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 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. Retail stocks are not participating in names we have seen a big run for most of these stocks as of late macys comparable sales rose 1 . Thats the most positive sales rose since 2014. That sale is not enough to pull comp for the year. Again, it is still negative year over year. The retailer is naming the next 11 stores that it is closing thats part of the 100 Stores Closing program that was announced in 2016. Macys shares were down. They are down about 3 and up about 30 . Jc penney also reporting strong holiday sales reaffirming the full year forecast, like macys, jc shares down 5 . I spoke with jc penneys ceo, he says sales grew. Those are among the category that performs the exceptionally well over december and november. Kostas papanikola l brands is weighing heavily on share is down at 11 is your general take that investors are locking in the Massive Gains that we are seeing in retails of the last couple of months that seems to be the case that along with some disappointment of margins, sales are pretty good of what we have seen going in. Courtney thank you. Lets take a closer look at whats going on with retail and how it is disrupted with amazon and other amazon players carter, welcome to power lunch. Happy to have you here you spent a good part of your time at walmart, what do you think they have done or how they have done it theyre still growing the store base of Super Centers and still getting high returns on invested capital by doing so they were not embracing the internet with their store base of 11,000 stores and smart phone penetration as it is, you can connect users to the stores via smart phones and they are doing that through smart programs like easy orders and easy pick up in stores and you can reserve your inventories and products in store and pick them up when you are ready. They bought a handful of companies that make a lot of sense like Parcel Company to do and delivery it is a lot different deliverying truckloads to store verses delivering units to home. You are suggesting what retailers are or the successful one will be is Distribution Companies as much as showroom and places to go shop. If you had to guess at what the revenue mix will be for walmart ten years from now, 15 years from no you between the digital side of business and the store side of its business, what do you think it will be and what do you think the store footprint for walmart will be now. I read one time that they could cut their asset base, 34 and still have 90 of u. S. Customers within 15 miles of the store. I think their store closures ahead of walmart are good for the company and good for shareholders i believe walmart will continue to use the internet and grow their ecommerce sales for about 4 or 5 now to well over 10 . The toughest one is grocery. The consumerables are tough to do with deliveries theyre going to learn a lot from divisions in england and companies that are doing it well at a localize level. Talk to me about other players in the retail world that you see as adapting smartly to the digital age. You better adapt to the Digital World or you will be toasted tell me whos doing it right and getting closer and whos missing the boat a lot of retailers have been slow to do this on the channel retailing. The reason is it is very hard with legacy Inventory Management and Warehouse Management system and the final mile problem, they had a hard time connecting their inventories with their online store. Theyre starting to do it now, it is a messy process to go through and a lot of them are just starting to understand how to do it now there are some companies that are doing a good job right now and you can look at costco and ulta all doing a good job. You will see a lot more store closures ahead you heard macys is closing 100 stores and h m is Closing Stores but, there is some bright light but there is no questions, there is too much Square Footage in the market right now well have you back more carter to talk more about the book, carter, thank you very much you are welcome big rally on wall street today. Stocks continue to smash the record the latest one is 25,000 one big name hedge funds manager he does not think the market is ahead of values. Welcome back everybody on this historic day in the stock market i am Tyler Mathisen. Milestone, the dow is crossing 25,000 and the nasdaq is at 27,000 and is staying there. What brought us here beyond bannon and big buttons. Investors seem to be stepping right past it. Well take a crack at why. The cannabis crack down. The attorney general reversing the Obama Administration hands off policy on enforcing federal law against marijuana. What it could mean for this business which so many people have power lunch begins right now welcome to power lunch, i am Michelle Carusocabrera lets get a check on the market the dow is shooting past 25,000 for the first time real estate, consumer discretionary, as you can see they are lagging in terms of the specifics, ge and ibm are your top dow performers speaking of general electric, tyler mentioned earlier after a rough 2017, it is off to a strong start of 6 this week alone. It is a green day for banks. The slx hitting a tenyear high. Macys and kohls and l brands, they are all lower l brands are on pace for its worst day of the year at 11 melissa. Thank you, michelle lets bring in bob pisani and of course, our fast money trader as well good to see you guys. We had tech leading the first couple of days and we have a leadership towards the sihere if you look at how the year ended, everything that was strong was sold off. The first couple of days, oh my god, lets real verse that because everyone got the memo now that strong is going to be strong in 2018 reverse it, it is 2017 part two. Three things worries me you do have worries this is the feirst day and i smell a little euphoria in the market thats my cologne the market has been hated for years. The bar is really high now the two most important thing of the market the economic numbers where we have been beating it number two on earnings, these companies have better put up and shut up the next couple of weeks when the earnings come out, the expectations are very high, tomorrow, lets look at the numbers, what do we expect the 80 blue everything out and supposedly getting a good number pick a number, 2,010,0010,000 would that move the market i bet you it will be a modest market to the negatives . When ever we have tax reform. We have a rate of 35 all the way down so theyre going to kill it. It does not matter of backward looking. No one is going to sell the market even if we have a weak quarter. Everyone is looking towards what it means for the bottom line the number is well above. I am trying to figure out how do you keep this kind of thing gold i think people are really going to focus on that and what they are going spend for cap ex and hiring plans are it is an odd earning season for the Fourth Quarter it is a lot of digest. We were worried of whether tax reform is going to get passed and now it got pass ed and now how big of an impact theyll need to say not only are we buying back stocks, we are doing Capital Expenditures the bar is set very high. They are expecting awful a lot here when could you not have said that you could have send it every step along the way dont you smell a little of fire sure. It is going get much more what i think is everything is moving higher. Things that have been working and things that have not been working. Take a look at ibm this year, ge of more than 6 . Those are the things. Those are the things to sale. See you tonight on fast money at 5 00 back over to you guys. Well be watching big money on wall street saying there is more room yet to run. Apple tells cnbc, he does not think the market is expensive and he does not see over evaluations, he says world growth is higher guys, good to have you here. Burns, what do you think, is the market expensive or not . I am not entirely sure what metrics mr. Tepper is looking at it is the price to sale and it is about 1. 5 sales market cap is a percentage of gdp and as high as it was during the dotcom bubble it is interesting that the market is slightly expensive across every metric. What are the arguments, you hear burns, dont worry, the e in the pe is going to get bigger because of tax cuts and Worldwide Growth we definitely should expect some growth from the tax plan. Like wise, we should expect some of that to be offset by perhaps a little more inflationary 2018. In 2018, it represents a grand experience of taking the economy thats operating it 17 years unemployment and layering on fiscal it barry bonds was a halloffame player before trying performance enhancement drugs. Eric, the market can go up whether it is expensive or over valued or not. They can keep going up a question for you, eric, if i am an investor, what should i look for that would be a signal that the market was about to turn against me . Well, certainly we have not had Something Like 14 months now of the s p 500 have gone up every month which is unprecedented. I think when you see the chart, it will be probably when we get a lot of good news and the market does not respond. That tells you that we are kind of near our top. Also, when you get a point of maximum of euphoria in the market how do you tell you watch fund in flows, what do you watch thats definitely part of it. We have not seen the investing public jumping in at this point. Throughout much of last year, we had a very much a hated bull market i think at this point, we are just starting to see some optism out there. It is not normal to have 14 months where the market is going up every single month without any material corrections thats a natural mechanism to keep kpexcess from occurring in the market anything that you think is cheap and worthbuying of over looked one place that the Financial Service stocks that have done certainly well in the past years, you consider the fact that there is a lot of secular tail wind. There is a lot of if you have deregulation has been one place that the administration have been successful. The yield curve is flat. Over longer term, we expect for it to go up and expanding the Profit Margins there thats one of the places with rewith sr the best Dividend Growth thanks seric and burns a massive winter storm. Dangerously cold temperatures. Those are around the corner. And angie came all the way from miami to join us because she knows snow a lot of people are, we have been dealing with the snow i want to show you central park right now of a live look of whats going on there. We continue to look at the glowiglo blowing snow and still dealing with it right now. You can see we do actually talk about anywhere from 30 and 40 sustained winds and we have gusts higher than that this is a little less of what we have been dealing with we have seen anywhere from road e island and massachusetts, dealing with 70 Miles Per Hour we continue to watch for the wind affecting storm surge along the coast for massachusetts and maine causing a lot of problems. Here is what we are talking of the snowfall forecast. Thats dying down as we go into maine, we are no t seeing that event just ending yet. Wa we are going to see on the backside once the snow jus taper off in the later hour, well see the whole arctic air moving in and thats going to create some problems well see a little bit of a fluctuation. Check out temperatures across much of the northeast. You can see we helicoptcontinuee watching for washington, d. C. And moving in for 22 degrees for your high temperatures tomorrow and 17 for massachusetts we continue to look at maine rather and new york city into the teens. This is not with the windchills. We continue to look at breezy conditions and gustingen gusting conditions over night. Over night well have cold conditions and of course, of any melting that you may have from that snow. Thats going to cause a lot of problems we are not done with the snow and we are still, of course, not done with the storm surge along the coast. Much to be watched at Boston Harbor right now flooding is really big along the east coast well be watching that for you guys for sure. Back over to you guys that was depressing but we wont hold it against you. Thanks. Whats your new years resolution lose weight or quit smoking. A difficult challenge for 2018 well tell you straight ahead. Does competition for diners kickoff a price war. And Jeff Sessions ramping up the war against marijuana. All that and much more coming up on power lunch. Dont move for your heart. Your joints. 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 market is turning down the volume on all the noise thats coming on in the white house. President trump has kept most, if many of his Campaign Promises he did succeed in cutting taxes and regulations have been pruned and he pulled out of the Paris Climate Accord and the ttp and hes working on immigration and renegotiating nafta and he tried to repeal obamacare. His wall street right to ignore the drama. Lets bring in ed white this market has really navigated political turmoil without a blink over the past year, why do you figure that . I think they figured out what is real housewives of washington, d. C. Stuff we have seen between bannon and trump, thats noise. It does not mean anything. I think one bit of it that makes a little bit of a difference is bannon using the tword. It allows democrats at a talking point and here is your strategists. It is about donald trump jr. And not about donald trump himself. Of course what i mean is he talks about donald trump jr. Meeting with russian interests during the campaign the rest of it is people throwing wine at each other. They can barely see i would point out that the reference to the meeting there in may of 2016 at trump tower which when it was with the russian lawyer and so on and so forth. This took place long before steve bannon was apart of the trumps inner circle it was three months before he came on the campaign so bannon being bannon, it would be almost convenient for him to look back on that prior regime and say look at how stupid those people are i would never have done that i am not so sure and who knows the point here that we were talking about earlier is how the Business Climate has changed in the past 14 years. You cannot ignore that. You cannot ignore the regulations. Thought it would be hard to get it done. We have almost on cue, they made the announcement for more drilling which is why traders should Pay Attention to thats what it is in these books. What they will doing is business friendly ttp is less friendly to Corporate America. They did not repeal obamacare. I dont think infrastructure is going to get done. They damaged obamacare. They started this the regulatory environment, this is a much friendlier place. Well bring in sarah fagan. Ttp was not going to happen no matter who won the white house, right . For him, it is like an easy win, i said i am going to do it and there is no political cost and certainly with congress. Certainly with the house of representatives unlikely to get through, i do think thats one of the holes for Corporate America particularly are big multi nationals looking out of the longterm business horizon that the trade environment is not what it needs to be to keep america on competitive longterm. Although we should get a boost there is this book that comes out. A lot of people in washington, we have shown the book, fire the fear. The people in washington says how is it possible that the market in washington could be doing it it is obvious because of deregulation and tax cuts and removing the most painful part of obamacare that would hurt the economy. There is little precedent for markets paying close attention to politics. There is certainly examples of natural disasters or Security Issues or 9 11 where the market was impacted this noise, the twitter noise and etcetera and the back and forth between consultants, it is irrelevant to the market one thing that i should say thats insight full of this book is that it does give you a sense of the mind set of trump and the style. That style has not hurt the United States on the International Landscape in a major way yet. Yes, it could. If he maetdde a rash decision, e had advisers that allowed him to do something tragic with north korea and china, that was quick or short sited we could see the market reacting differently in that situation. Thank you, ben. By the way, not to brag. I have one do you have one yet . I dont i the white house is going to come confiscate that and sue you for holding it up. Have you check the index for your name yet . Oh my god, i did not think about that melissa look, look, let me know Mark Zuckerberg is going above and beyond of his new years resolution well tell you what it is. How thrifty diner is kicking off in the value diner stoecr. Well tell you whos doing it right right here on power lunch. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they pick up some of what medicare doesnt pay and could save you in outofpocket medical costs. 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And there are virtually no referrals needed. So dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. This easytounderstand guide will answer some of your questions and help you find the aarp Medicare Supplement plan thats right for you. A lot of people set big resolutions to achieve in the new year Mark Zuckerberg, his personal challenge is fix facebook. Julia boorstin is in los angeles with more on this. Reporter zuckerberg have included learning mandarin this year, his challenge is not about self improvement but rather fixing Facebook Zuckerberg writes on facebook quote, facebook has a lot to do whether it is protecting our community from abuse or hate and making sure time spent is well spent. Zuckerberg says he will gather experts to help on topic and whether technology is a force. To better understand encryption and what they mean for facebook and zuckerbergs vision. One thing he does not need to fix is facebooks stock. It is up 50 the past year guys, back over to you. Julia and if you are stuck because of the storm today, you are not alone. This winter storm is causing traffic snarls fromflorida all the way to maine well tell you whats eaahd in twominutes when power lunch returns. Hi, im joan lunden with a place for mom every day we hear from families who partnered with a Senior Living advisor from a place for mom to help find the Perfect Place for their mom or dad thank you so much for your assistance in helping us find a place. Mom feels safe and comfortable and has met many wonderful residence and staffers. Thank you for helping our family find our father a new home. We especially appreciate the information about the va aid and attendance program. I feel i found the right place. A perfect fit. You were my angel and helped guide me every step of the way thank you. The Senior Living advisors at a place for mom partner with thousands of families every month, listening and offering local knowledge and advice to help find the best Senior Living communities across the country and it wont cost you a cent. This is a free service. Call today. A place for mom. You know your family. We know Senior Living. Together well make the right choice. Hi everybody, i am sue herrera. Here is your update at this hour, the Trump Administration is moving to vastly expand offshore drilling. It will open the largest area on record if approved, drillers will be allowed to drill in the Pacific Ocean for the first time in decades. Critics are concerned of potential spills isis is claiming responsibility for today. Authorities is saying the attacker blue himself up near a group of security personnel. The blast killed at least six people and injured 14. A 5. 1 magnitude earthquake take a look at this, huge wave of this big storm moving up the coast. One driver gotten nailed after parking his car. It is one of the places of getting hit the hardest. Thats the news update at this hour, melissa, back downtown to you. All right, thank you very much sue herrera. Lets bring in bob pisani for a look at whats leading the chart. You and steven we were talking about about the fact that i smell a little bit of euphor euphoria i have not smelled euphoria. The thing that this market has going for, for so many years everyone hates the rally if everyone decides they do really like the rally, thatll be a mild market now we had a strong start for the year, this does not normally happen like there. We got 2 essentially, do the math here. Three trading days youre normally on the first day you will get them, a bond will be heavier than expected this is much stronger than people expected. So in the last couple of days, for example, Growth Stocks have been particularly strong. Look today, value stocks and i look at growth verses values are out performing growth stock. They c thats notable because now stuff thats lagged a little bit have come forward this is what melissa and i were talking about, finally just everyone keep in mind that this is not a u. S. Rally, it is a global rally gdp is keeping it relatively high the nikkei is at a 26 years high europe has good number here and adp, the bar is very high for job amber alereport we need a lot higher. As when do you get to the point where going to say the fed is going to get aggressive remember that yes bob, thank you. Bob pisani Jackie Deangelis is at the commoditys desk the close for today was 62. 01 that was a more than 2. 5 year high for oil prices. The support was coming from the eia inventory report that was substantial it was balanced out by a bill of 4. 8 billions and gasoline. The under lining commodity there. There is still support for this crude oil trade. We are looking at tensions over seas and those opec cuts people are talking about the fact that the members of the country have stuck with this agreement. Thats why these prices are holding over 60 a barrel. Back to you. Massive blizzards slamming the east coast at this hour. The most dangerous weather may come after the snow stops. Contessa brewer is in boston reporter the wind is gusting so hard now. It feels like sand during a hurricane. My safety glasses are this lowest power reading glasses if you are wondering why i am wearing glasses. Out here, we are looking at accumulations of two to three inches wind gusts is what we expect to see over a hurricane schools are shut down. These kids are from california they said to their parents, can we see outside to see what it is like they are the only ones that are out here those who are absolutely have to get to work, the governor is urging poem to stayathome. We met construction workers who were trying to avoid a ticket. It was incredible that they were braving the storm. We had to do it and it is going to be the light nigong night fos yes, everybody gets in tomorrow morning we had to remove the walk way. Reporter you can see the plow comes by and what it is doing is shoving the snow box in the many ididdle of the section we saw a guy earlier, did you guys have the video . He came and ran into the big snow tank. It took five guys to get him out and the snow shovel thats been led to him thats what people are encountering out and antibiotic today. 13,000 people are without power and mostly on the cape right now. The dangerous cold snap is coming it is going to be a problem. Guys. Thank you, contessa, thank you. It maybe cold outside. Mcdonalds value reward menu is heating up taco bell is debuting their newest addition of the menu, nacho fries. Could this put a damper for our fast food menu for more on this, lets bring in the managing director, bob, great to see you again whether it is on everybodys mind i am going to kick it off with weather. Who has the dpraetest exposure to what is going on with this snow bombcyclone thing investors hate to talk about weather. Weather is going to have an in pact and put a chill into some sales. If likely it will affect highway travel, Cracker Barrel and sonics drivein sales it will certainly have an effect it is a very, u. S. Country that we live in so while some brands maybe affected and some maybe unrelatively affected. Are we entering an area of high activities. There is a high likelihood that we heard some say that the discount wars and the value wars there die down as demand picks up thats a possibility right now we in the industry that those brands who dont want to compete have to compete because there are Desperate Companies that are putting out offerings in the marketplace thatll suck the business away the value is here to say. This feels like retail, just before retail went really bad. They are slashing prices. It koucaught up with a big sector in a digger wabigger way taco bell and mcdonalds, those two brands right there of the market at the price point, theyre going to make life miserable, not just for fast food but for others. Yeah, and yum in mcdonalds have the best single value offerings. The 2 make con and bacon mcdouble tell me about the most creative new meal. The mary common chee this company understands their market snitches and who their customers are. Jack in the box is opened 24 hours whos able to understand the different day parts where they compete especially late night and those who have cravings they are terrifically positioned to be able to benefit from this potential. All right, bob, thank you for your thought i appreciate it. Sure. Attorney jesessions ended the what does it mean for this industry . Thats ahead for power lunch. Attorney Jeff Sessions rescinding, marijuana. This is just days after california legalized regular creational marijuana houston in the United States. The cannabis industry is now in the crossed hairs federally. Joining us now is kevin sabet, hes the president of smart approaches to marijuana. A former adviser of National Drug controlled policy under president obama. It is good to have you with us just to be clear, whether do you stand and where does your group stand on the matter of, fully decriminalization to criminalizing the use of marijuana. Well, we with some where in the middle we dont want to see this massive news which is been growing for the last few yoors we were founded by Patrick Kennedy on the left and as well as his son we are advised by the top researchers in the country from harvard and other places and john hopkins really stopping a new industry that everyday more and more people are smoking tobacco. Legitimatizing an industry that is built around a product that some would say it is a fac that it is happening among thats making bun, when you take recreational and medicineal it is really the big investors. It is not just about the mom or pop shots. It is about the wall street in Silicon Valley millionaire they did not cared if it was maer theyre going on a low right now. You are talking on the market being on a high. Theyre at a big low right now this is going to threaten their ability to do that theyre not going to want to get involved this industry has now over night because of this memo becomes more risky as this frankly a lot of people in the administration. This is republicans and democrats issue. I want to understand whats happening over niepght. Correct anything that i say that you think is incorrect under president obama, if you are in a state or marijuana is legal, we disin incentivicentiv. Jeff sessions put out another set that says forgot that. It is okay depending on the level of researches that you have and cases in familiar is this a correct understanding of how this has changed and is this necessarily mean that well have more prosecution . We dont know what it means it is uncertain it does not mean tomorrow that well have a ton of vision it just means there is a lot of opportunities thats thrown into this pack there is been some Major Companies and major name of the financial role, i think they are theyre going to think where i say twice because there is so many entities now. I think they can go after anybody. Theyll go after the investors and people that are putting down a lot of money mike, my sense here, kevin sabet, this is likely will be Court Challenges in this and that in three years or eight years old or whatever it is, there is a new by the way, the president was kwequoted thae believed this is a matter regulated by the state the issue is, this is not really something that was proud of the court in terms of what Jeff Sessions did. This is guidance to the u. S. Attorney who are traditional prosecutors. This is guidance that says you know what . Well go back to three cold ojs. It allows you to do what up wrong. Now, will this increase of a likelihood in a fight of congress and changing federal law . Maybe. I would argument on the post of legalization, it makes sense the way you do it to change federal law and not to go this in round and violate them and having memos and no what they need zr super vague. Remember, this is guidance as you as a attorney. The attorney general puts on his cape and says we are going to fire him i think rate is a lot of question for anybody that wants to invest in this. So marcus, the profit thats done hot, documentary for us have haraised many times. Sarah hucklebee sanders lets head to eamon javers at the white house. Sarah continues to push back from the author of which the president was par treyed he pointed out one, she say the president knew who john mainer wamai boehn boehner. Sarah hucklebee says thats not true, they play golf together she gave us behind the color color to make sure how much access they have. Oh, i guess we dont have the sound byte ready to go denied on 30 or more occasions request for specific information. She also said she asked specifically for an interview with the president of the United States on a number of occasions. She said he never got nthat today, yesterday, though, she said he did have a phone call of five or six minutes with the president , i guess that doesnt qualify as a sitdown interview actually what the white house is doing is minimizing the amount of access Michael Wolff had, at the same time, though, theyre suggesting some of the information in it is so damaging that they are sending a lawyer letter suggesting that the publisher should not publish the book. So, its either accurate or it isnt. Its Accurate Enough that they dont want the book published. Its inAccurate Enough that they say they can point to a lot of falsehoods in the book, guys back over to you. Eamon, thank you very uch we appreciate it it its a lot of, as we read it, read parts of it, theres a lot of sort of gossipy information as how i would characterize it. Reporter sure. You mentioned the thing about john boehner and the president playing golf apparently in 2013, something Brian Sullivan mentioned yesterday. Its a little ambiguous as to whether in that exchange, the president was saying, whos that, as if he didnt know him, or whos that has a kind of throwaway line dismissive. Dismissive line that wasnt substantive enough. Reporter a lot of this goes to state of mind, emotions. Yep. Reporter he can say, whos that sort of, yeah, dismissing him saying hes not significant enough anymore, hes a has bee or saying whos that generally unaware of who is the person is. A lot of whats in the book here is sort of emotions, peoples state of mind, all that. What they were thinking at the moment, thats very tough to report out journalistically and going to be very tough to prove its factually wrong. Yeah, what you were thinking is not on tape anywhere, thank goodness. Reporter not yet, anyway eamon javers, thanks very much. Reporter you bet. Melissa the dow busting through the 25,000 mark for the first time in history, but david tepper telling cnbc the market is as cheap as it was a year ago is he right . Well debatehat raht a tstighead on power lunch. Well, a 103 yeah, 103. Well, let me ask you guys. How long did it take you two to save that . A long time. Then its a fortune. Well, im sure you talk to people all the time who think 100k is just pocket change. Right now were just talking to you. I told you we had a fortune. Yes, you did. Getting closer to your investment goals starts with a conversation. Schedule a complimentary goal Planning Session today. Duncan just protected his family with a 500,000 Life Insurance policy. How much do you think it cost him . 100 a month . 75 . 50 . Actually, duncan got his 500,000 for under 28 a month. Less than 1 a day his secret . Selectquote. In just minutes a selectquote agent will comparison shop nearly a dozen highly rated Life Insurance companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 21 per month. Give your family the security it needs, at a price you can afford. Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. Time now for trading nation, lets trade the dow on this historic day. Mark tepper with Strategic Health partners, dave seaburg. What would you do on this recordbreaking day . Look, i dont think the markets by any stretch of the imagination is pexpensive, i dont think its chaem why are we here . We had a Global Growth thats been stellar, essentially, u. S. Really shining bright. Earnings growth. Weve seen real pillars that supported the valuations that were seeing you have to keep your foot on the accelerator here and stick with these investors until theres cracks in the narrative. I dont see cracks on the horizon. Mark, what do you think, the dow above 25,000 for the first time ever, talking about valuations just like david said, david tipper says the market is cheap, not too expensive, what do you think id have to agree were actually expecting 30,000 by mid 2019. You know, the dow was up 25 last year. It took only 35 days to go from 24,000 to 25,000 which actually tied its fastest 1,000point climb ever and whats actually interesting is that this years dow leaders were actually last years dow laggards, so disney and ge are up quite a bit so far this year after pretty awful 2017s wed expect given good economic conditions, that the dow should surpass 30,000 by mid 2019 got it. We would stay overweight equities at this point. Got it. Positive calls from both of these guys thank. Can you. For more trading nation head to our website, tradingnation. Cnbc. Com check please is next. Now the latest from tradingnation. Cnbc. Com and word from our sponsor. Short selling can help you profit from a stocks decline. However, because it involves unlimited risk, you must have a plan first, screen for poorly rated stocks showing weakness versus the broad markets. Second, look for the stocks with the poorest technicals in that group. And finally, incorporate risk name techniques into your order to limit potential losses. Soot big rally, they used to make hats for these kinds of days so routine, dont have to. Melissa, looks like closing bell is getting ready for a record day. Theyre ready hes got his dow 25,000 hat. What a remarkable day we have here everything is going higher the leaders, the laggards. I dont know if its the bomb cyclone or what, but there is an energy on the floor today that is not normally here until the close. But you can feel it, right pisani pauled called it eupha that worries him. I dont want to jinx it, we have an hour to go this is one of the days where we wonder where are we going to do it absolutely. Thanks for watching power lunch. Hand it over to you guys. Welcome to a special edition of the closing bell. Dow 25,000 im kelly evans at the new york stock exchange. Im Bill Griffeth lets get to bob