Welcome to power lunch. Im melissa lee. The bulls are in charge firmly today. The index up triple did you get right now, up about a half percent. We are off session highs s p also hitting 2800 for the first time ever. Its a broadbased rally also hitting record highs. Heres whats moving this hour ge is down about 3 , teak a 6 billion hit related to the reinsurance biggs. Fellow dow member, unitedhealth going in the opposite direction. The stock is rallies and amazon take a look at that, trading at alltime highs. That is the highest on the street brian . Thanks, mel here is what else is happen, a Big Hedge Fund eyeing twitter. Greenlights taken a small position in twitter. Its not helping the stock, though we have called the energizer bunny. Now theyre getting into the rally, buying ray ovac with specter and were going to head live to the Detroit Auto Show later this houring to a look at the cool car stuff. Roberto pisani is down at the stock exchange. Seven days, and were running out hats i called peter and said we have to order more hats we need them down here remember this big stocks, big price stocks move the market more if you look, boeing, of the thousand points we moved boeing is 34 of that the caterpillar almost 9 , eye nightedheath, home depot, you get the idea theyre 60 of the gains of the dow 30 theyre the highest priced stocks as well notice the days to rally are getting shorter youre not hallucinating not just because the nuism bers are getting easier 23 and now just seven days to get from 25 to 26,000, this is a big, big rally, and a lot of it is based on two ideas. Number one, its a global rally. Across the board this is so far year to date were seeing all around the world stock markets are up not just in the United States, but in the u. S. In particular tax reform has helped. Since december 20th, when they passed the tax bill, they raised the numbers. That is a lot to move in three weeks. I suspect thats going to go up even more. You could call it piercing this out, i dont like that phrase, its not very elegant, but big flows, even into the u. S. Last week this is people putting a lot of money to work right now. Finally lets look at the dow, were well off the highs a lot of people have asked what is going on with that . There were some report early in the morning about a Turkish Military buildup that might have something to do with it. I know a some of the bids were canceled a bit somewhere around 1015, 1030. I think thats a bit responsible for that. Thank you very much, bob pisani stocks tearing through where can you find value in this market dom chu is looking for some bargains as we talk about the 1,000k move, mathematically its getting easier to get there, but there are places in the market you look at some of the underperformers the past 12 months General Electric, three dow members that are actually negative on a 12month basis are people picking up value . Up under todays news. The gains are still there. Take a look at this, though. We talk about the dogs of the dow, the highest yielding members. Other people looking at pricetoearnings ratio, how much a Company Makes in profits, and how much you pay for dollar of those profits intel an underperformer in the dow over the course of a year, and these represent the lowest pricetoearnings ratios there back over to you on a day with many amazing data points, perhaps heatss the most amassing at all saying if seems like irrational exuberance the question, though, is he right . Sam wise is joining us and chief Investment Strategy tis with key bank to be clear sam zell is in a different hes probably more worried about Capital Press race rather than growth still, given all the amazing stuff thats happening, does it and raise a little more cash, even for the every man out there . Yes is the short answer we have ridding this bull for all its worth so far. Last year in fab, even our most conservative target was up over 11 with the more aggressive funds over 20 theyre looking rosy, but has not had a halo effect yesterday. Were very good of asking people like you and bruce what to buy how about this if you want to hedge your puts, you have a couple sectors, consumer staples, and quite frankly the safest place to be, i have to raise the issue, is cash i dont know that theres any safe havens in the stock market at this point . What do you think weve seen this tremendous rally. Were setting some targets. Whats hyperbolic a lot of things you said could have been hyperbolic. Absolutely. When you look in particular, they have gone straight up considerably up above where they were just recently trimming some of those positions back to what you would consider a normal holdings, reallocating some of the money to bonds, cash or something thats more stable, sticking with the basic longer term objective that equities probably is going to be the best place to be for the course of the year and not giving up on that. Richard, is there an area of the market that may seem like its gone up in a hyperbolic fashion, but you say stick with . I think thats the dilemma a lot of investors are in right now. They would have said certain gains seemed hyperbolic, but if they told, they would have missed out on a lot. If its a two or threeweek move thats a highquality stock, i think you stick with the basics position longer term that doesnt mean you dont trim it back, so that it corrections back you have a bit of room to add to the positions later, but its still a focus on fundamentals, the earnings power of the stock going forward. You dont want to give those up at this point in the cycle rich, bruce, were going to leave it there guys, but well have you on soon again i promise. Take care. Stocks are rallying, bitcoin is sinking seema mody is breaking down the latest headlines oirchlts one of the largest bitcoin marx will do, the latest warning came from the finance minister overnight who said banning cryptocurrency sits is an option on the table further regulation is not being welcomed by citizens over 2,000 South Koreans have signed an online petition asking the government not to limit trading. We citizens think that the government is stealing our dream. Irs not just asia thats trying to crack down. Frances finance minister this morning saying hes launching a special task force to looks into whether individuals are using cryptocurrency sits for tax evasion. Remember, that topic got attention here when the i. R. S. Ordered return of records of over 14,000 users who had traded bitcoins concerns that is sent it below 12,000, recently come back above that level, but still down 40 from the alltime highs. The selloff may not be all bad news hes actually thinking that this move is a healthy correction. Of course he would. Its such a friend attitude wait are they evading taxes . Thats so typically french. And mnuchin last week, is it sort of the new swiss account . Many sought citizen ship in dominica and others than known for we should say loose economic enforcement practices. The suck road did more than anyone to promote bitcoin. So governments are going to be nervous now these companies are turning to technology to help them compete i dont know how that robot is going to help, but well find out. Plus the ge that the jack welch built. Being torn down. Is a complete breakup coming power lunch will be right back cameras. The redesigned gla suv. At a price thatll make you feel like youve gotten away with something. The 2018 gla. Lease the gla250 for 349 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. Who said retail was a wreck . Up nearly 20 in the last three months our next guest says tax reform could keep investor optimism going. Ike, great to have you with us thank you so much for having me. In terms of the improvement to earnings, is this a mechanical improvement or there a believe that things are actually fundamentally changing for this group . I think its better, basically throughout the end of last year. We are likely going to see or most successful holiday in about three, four years. That top line driven thats also just its going to put us in an upward revision cycle for retail we havent seen that in about two years. The market is kind of catching up there shall groups of about 25 to 30 it will be interesting to see how things play out, but honestly, to hans your question, i think things are Getting Better. You look at the retailers that youve covered that will have the greatest tax benefit because of the changes anding are seeing the greatest fundamental improvement, which stocks exists where that crosssection is i think you want to look at the domestic retailers its biggest tack breaks, and biggest inflection shuns from comp performance what was the effective tax rare and what is it in general i think in general it was mid to high 30s, and its probably going to mid to high 20s, a name we upgraded two weeks ago is ul temperature a beauty, has some of the best Growth Prospects theyre still comping high Single Digits and 20 earnings profile extax you combine that the fact that ulta is one of the biggest tax beneficiaries by our math and you have a stock at session multiples with some of the best fundamentals in retail thats a name we recently upgraded. You know, ike, the average retail stock is up 41 , thats the median either people had it exactly wrong last year or theyre overshooting. What happens when you have names trading at trough valuations with no hope with a Short Interest that was the highest Short Interest for retail was points above the recession. So it had a negative investor sentiment. You combine that with, we talked about slightly better fundamentals, and then the tax up side and holy smokes, you see the rally youve seen. To your point, the move you have seen has been most material on the names that have lagged that were cheap. When i hear short covering, i think thats done. That that was just that combination of things you just referenced. I think if youre talking about valuation, you kind of missed the boat. From here, i think it will be tougher sledding, but again, to go back to the point we started this, fundamentals are Getting Better and 75 of holiday preannouncements have been positive, which is well above the so the fundamentals are better, but the stocks are much more reflective of this today. Got it. Thanks, ike. Thank you. The Retail Industry grappling with its future. Thats why technology is front and center at the retail federations bit conference in new york Courtney Reagan is there with more reporter the National Retail federations annual big show is like a ces for Retail Technology this year its all about robots and a. I. That powers them. Im standing here in locko lock customer robotics. They save packing time, now to mention saving miles and miles for human colleagues every day, but you should also probably meet pepper. This is a japanese robot s. A. P. Uses it for the software so that it becomes an instore stanlt its currently being used in germany at a wine retailer, if youre a shopper, you can give pepper your preferences and it will help you pick out the perfect wine how about starship technologies. This is being used by post mates and door dash in washington, d. C. And Silicon Valley for orders within a twomile radius. It stays locket under it gets to its final point. Albert is a marketing platform being used by a number of retailers a Lingerie Company said since using albert the facebookoriginated purposes have increased more than 80 Gallery Furniture in houston, its only been using alberts technology for two 3407b9s, but the overall sales have increased by more than 22 back over to you guys. Very cool stuff, courtney. Bring us home a robot. One stock not participating, 18 are 18 a shares a big break upcould be around the corner well tell you why, when power lunch rolls on. The great emperor penguin migration. Trekking a hundred miles inland to their breeding grounds. Except for these two fellows. This time next year, were gonna be sitting on an egg. I think were getting close make a uturn. Uturn . Recalculating. Man, we are never gonna breed. Just give it a second. You will arrive in 92 days. Nah, nuhuh. Nope, nope, nope. You know who im gonna follow . My instincts. As long as gps can still get you lost, you can count on geico saving folks money. Im breeding, man. Fifteen minutes could save you fifteen percent or more on car insurance. Your top corporate story today no doubt is ge shares down, as it said it would take more than a 6 billion charge more interestingly, also suggesting it could break itself up Morgan Brennan has the latest news the biggest new, that ceo and chairman is seniors le considering a breakup of the industrial conglomerate. While flannery has stressed that every option is on the table, todays Conference Call comments, those mark the first time hes explicitly said that ge could be spun out into separately traded assets that could, according to sources, and as david faber has also reported, include pourer, aviation and health care flanly also saying he they will review, making sure the businesses can flourish in the decades ahead. A breakup has not fully decided. Flannery saying expect an update on all of this in the spring meantime, next week, and the stocks that rallied now down about 4 back over to you. Hey there, morgan, the stock is not moving very much. What are analysts saying i think thats been the bigger trend overall, is the idea that some of the parts are greater when they are broken up. Weve seen this with honeywell and other companies, et cetera a lot of analysts after the meeting were disappointed that there wasnt a sort of more aggressive approach laid out for the remaking of ge, given the fact we did see such type revisions to the longerterm outlook numbers. So i suspect this explicit commentary is a continuation of that, flabry saying every is really on the table, there are no sacred cows well see what happens we have a couple more months of potential uncertainty. Thanks, morgan. President trump says no one is talking about the economy, huh . We are its been strong, but does the president deserve the credit we debate next. And live to the Detroit Auto Show, but everyone is talking about the north American Free trade agreement. Why . Ckower lunch will be gh rit ba your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Hello, everyone. Im sue herera heres your cnbc news update steve bannon has been subpoenaed to testify before a grand jury, as part of the special counsels probe into russian meddling first reported by new york times. It is the first time Robert Mueller has used such a move against President Trumps inner circle bannon arriving today for his testimony before the House Intelligence Committee the start of the fourday sentencing trial of olympic gymnast going larry nassar scores of women will have a chance to speak directly to the man who abused them, many of them gymnasts. The Russian Military is conducting Massive Drills involving truckmounted intercontinental miism launchers, covering the territory all the way to siberia. Britains print william and wife kate visiting the english city of coventry this morning. They were given a tour of the ruins of the cathedral and attended a ceremony in the new cathedral. You are up to date melissa, back to you. Thank you very much, sue. Markets right now are still higher across the board, but they are holding on to their gains, well off the session highs. Dow had been much it has taken just seven trading days to go from 25,000 to 26,000 pretty much at session highs with the markets up. A nightedheath, merck and others leading the dow. Better known as the Detroit Auto Show has nothing to do with new models or driverless cars. Its nafta, because that may mean more to the Auto Industry than any other phil lebeau has more one of the after a year of threats from the Trump Administration about reworking or tearing up nafta, its still a topic thats front and center and would have huge implications how big would the implications be look at this chart 2017 sales in theUnited States a little over half are built in the u. S. Look at at the next two flags. Canada and mexico. Here are two executives talking about who would pay the price . The consumer will pay a price, and it is not significant. If you are the only one and everyone balancing back in the u. S. , you have to wear it. If ire a tier 2 or 3 supplier and you have parts moving across borders. Likely the cost of vehicles go up as cost goes up, demand typically goes down. Thats risk to employ here in the u. S. As you look at shares of fiat, chrysler, General Motors and ford, we should point out that mary barra was asked this weekend, in light of whats going on with fiat cite her moving some of the its practices back to the United States, did General Motors have any plans. Time and again mary barra said, no, not right now. Thats the approach that General Motors is taking it will continue its planning to manufacture in those two countries until nafta is changed. While everyone expects something to be altered, until that happens, you will not see some changes for some of those for a 1i89s. Guys, back to you. When they announced moving from mexico, the reaction was front running a potential nafta change, but that doesnt necessarily change any of the supply chain that had been built around mexican production. Wouldnt there be an extra cost adjusting for that they believe because the supply chain is so established in the United States, that they could adjust those here. Sergio martian did tells us it will be costlier to build the ram in the u. S. Than it would be down in mexico he also said theres a limit to how much production you can bring back to the United States and the supply chain, to your point, because its so deeply ingrained in mexico, as well as canada, it would remain there. As a result not everybody will bring back production, so there will be costs borne by the manufacturers. Weally know whatlikely is to happen thats going to pass on to dealers who then pass it on to customers. Bottom line ticket price. Thank you, phil. You bet President Trump on twitter saying the Mainstream Media doesnt like covering the recordsetting news. We talk about it here every day. Arent we mainstream how much credit does the president really eserve . Steve liesman looking at the trump economy one years in. Thank you President Trump has hit his 3 growth target during the first three quarters the question is how much is he responsible for . And most importantly can it continue we assume the Fourth Quarter comes in at the projected 3 growth under President Trump is an extra 1 higher compared to the prior four quarters, mostly coming from trade, niche torrie and investment, mostly, folks, in equipment there increased Business Confidence from the president s expected policies could be the reason, and you have the expected tax cuts coming and actual deregulation, but the president has also benefited from higher oil prices, and part of 9 spending looks to be tied to energy its also been help by higher defend spending and a boost from trade. Job growth strong under President Trump. So the trump economy looks to have benefited from positive reactions to the expected and actual policies. True test comes down can continue with some of the policies actually coming into place. Dont move, steve, we have larry kudlow on set. Its hard to measure some of them are basically optimism measures. How optimistic are you, that eventually translates into the real economic, doesnt it . I agree i agree with steves report. The animals spirits have been rising, confidence has been rising, both consumers and Business Confidence rising look, cap ex is really important. Capital expenditures. Really important, whether you look at factory orders or Industrial Production and business equipment, they have really taken off in the last couple quarters and have been responsible for most of the increase in gdp from around 2 to 3 . Also, profits have been increasing you know, we had a profit slump for almost two years, from about the middle of 2016 up to now, profits have rebounded and vastly out3r678d who everybody was looking for. What mr. Trump has been doing with respect do lower business taxes and rollback, is to increase, to increase the outlook for profits, which increases the outlook for business strengths, which goes right down the line, employment, product activity, wages, so forth. I have never seen anything there must be 100 companies now that have declared wage increases onetime benefits, higher minimum wages, walmart, which refused to accede to the governments demand, these are signs of economic strength. You were one of the first people to say ive worried about nafta. I think the president will pull out of the nafta rhyme hearing that the president is not inclined to pull out. Theres a lot of issues and time for a retrofit. Theres a big election on july 1 great insight i also think that they know, or suspect as i do if you pull out of nafta for all reasons, youll knock the stock market down. Were talking agriculture, were talking car parts, trucking, transportation, energy, we are too intertwined. Pulling out is not easy, but theres a lot of good stuff going on, no one doubts that but im going to have the glass is half full. Because ive been drinking. Sorry. Go ahead the dollar is at a threeyear low. Larry and i disagree with whats going on with the dollar my take is we do well when the dollar is strong and we do well when the dollar is week did i hear this groan from larry . Were going to let that groan find verbal expression [ laughter ] right now its helping manufacturing, helping exports a bit. I dont see it as a dark cloud why is it week it makes no sentence. That predicts the outcome of a currency better than the film of a coin. Its almost random its just that it makes the rag of u. S. Says worst less. Thats fair enough. I would agree between that. If you would and you have to measure that. To be sure it also should be and by the way, i throw in the tips inflation expectation, too that plays a role. However, if you took the chart and went back to 2012, 2013 its off about tenish , i get that, but really were not pegging the dollar to anything i dont see an explosion of brought commodity indexes, nor do i see this explosion in inflation. Is when the dollar collapsed on a sustained base, it was an economic catastrophe i dont disagree, but were not talking about the collapse of the dollar. They allowed it to sink, too far and too long great damage and helped play into the meltdown. I dont see that right now all im seeing is lets keep an eye on it. Actually im not a trader, lower knows. Theres an argument so i buy on the weekend some of them are going and some of those stock markets have performed better some countries will be faster, some left behind heres trade deficits. S they already started to go up can i footnote that hang on, hang on. The trade deficit you run actually helps foreign economy we are demanding more, the lock motive engine. Ascertained grow more. Thats why the president is debt wrong. He told me to hang tough. A seance with the president thanks, good discussion. To the bond mark. Youre absolutely correct larry nailed it. I think our center bank leads the worlds central banks. Therein lies some of the issues. Its up on the day and yield down on price, another fresh high going back to 2008. The threeyear and fiveyear, as you see, are also higher the five at the highest level since 2011 tenyear is the fulcrum on the day. Its exactly unchanged youre right when you called for basically lowest levels. Probably raising a little faster, because that was one of the great worries. Our central bank, with the effect on capital on tax policy and growth will force them to be quicker on the stimulus removal i think thats one of the strongers over 50 percent, a bit of a distortion. Melissa lee, back to you. Thank you, rick. The dow is up over 100 points, could earnings be a threat to the ray . Ll the earnings squad will join us, next energy is changing fast and were changing with it. Building a smarter grid, investing in new technologies, thats aeps road to the future. And the International Brotherhood of electrical workers helped make that happen. The ibews Outstanding Union professionals have the skills and training to get the job done right. Thats good for our customers and for our bottom line. Ibew members are our power professionals. They should be yours as well. With the extra third rowr. Of seats. They think its theirs. Look at them, they have no idea its not theirs. Its mine. Mine. Mine. Mine. The new lexus rx 350l with three rows for seven passengers. Are you excited about your baby sister coming . Experience space for the unexpected with the rx l, part of the rx family. Experience amazing at your lexus dealer. Welcome back to power lunch. Will frost is joining mess here with a look at the big banks reporting, wolf, lets start with you. The key thing to watch tomorrow, bank of america and Goldman Sachs. For Goldman Sachs, well be stripping out oneoffs jpmorgan down 17 . If Goldman Sachs are noticeably worse than that, it would continue the poor friend over the last few quarters. Trading does represent 37. 5 of Goldman Sachs revenues for bank of america tomorrow, trading is less than 15 of the total. Expense management will be of note, its been as area of strength, will they keep that expense targets . And he needs to be a strength in coming year. Look out for where the compensation ratio comes in above or below 30 both banks will also estimate their effective tax rates. Whereas the bank of america is around 20 and 25 for for Goldman Sachs analysts wonder guided to be will impact buybacks for the year ahead the medium the 5 billion in extra revenue in three years. Analysts feel its a big ask and theyll look for more details on how to reach that. Dick bove recently came out with a report upgrading Goldman Sachs saying they think theyre going to kitchen sink that 5 billion writedown in order to clear the deck for the rest of the year are you hearing any of that . We have heard before any of these banks reported whether a lot of them would just up the writedowns, and a quite a few of them have come in just below what they guided its possible theres a little bit of that inside it. Either way, for them, Goldman Sachs 5 billion writedown is bigger theres question what that means for their buyback ability. Ibms reporting thursday after the bell, so what can we expect melissa, three things to look out for, as big blue continues to struggle to transform itself. First, watch out for Strategic Imperatives growth this is a Business Unit that covers watson, ai, and other next gen technologies and its supposed to bring ibm into a modern business area so far its been choppy. Second, ibm just shook up its csuite veteran James Cavanaugh became cfo, replacing martin schroeter. Thats a position ginny rumete held before becoming ceo does it need to turn around the ship or does it go longer. Third, look for Revenue Growth at long last after 22 quarters of declining revenue, the street is looking for 1 growth year over year. The stock has been underperforming for so long now that even a very modest growth rate could support hopes for a turnaround, though bernstein analysts throw cold water on that, saying tax and tax reform could complicate the plans thanks. Deirdre bosa, and thanks to the earnings squad a stock upgraded today because the analyst says basically the management is not as lazy as it us tbeedo marke markets. S p and nasdaq turning negative. Dow clinging on to gains now, up by 70, and still having hit a record high in todays session time for street talk now the stock you need to know about. We kick it off with gg, gold corp getting an upgrade. Goes up 4. 50 to 19 the change comes after a twoyear period of restructuring. They have reestablished a good operational track record, and most likely 2017 production costs and cap x guidance the investor day, today, that should be a positive catalyst for the stock. Stock number two, the one i referenced in the tease, qualcomm they say that qualcomms management is smart, but has been, quote, unassertive and complacent in the past few years. They think the hostile takeover bid by broadcom is a, quote, gun to the head type moment. They think theyre going to be more aggressive going forward, and settling lawsuits with apple could be a nice catalyst our third stock here, Procter Gamble getting an upgrade from a neutral to a sell. Theres nomaterial downside to the estimates. Theyre still concerned about longterm growth aspects giving the complex organizational structure. Goldman is more optimistic about cost savings your final stock, generally a smaller cap, is Allegiant Travel thats the airline, folks. They upgrade to a buy from a hold they say the street is too low on revenue per street mile trends hes about 5 above others theres not much competition in many of their markets and they have a cobranded credit card thats doing okay. They boost the target to 200, about 18 upside from here thanks. The dow continuing to take out milestones dow 26,000 just today. Are stocks moving too far too fast plus, the pickup truck wars are taking place at the droit auto show. Big trucks and big gains all coming up in the second hour of power lunch. I realize that ah, that 100k is not exactly a fortune. 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. Im melissa lee. Heres whats on the menu. The dow hitting 26,000 for the first time but todays big rally fading fast right now, as fear and volatility creeping back into this market. Promises made, after a wild year in the white house, what Campaign Promises have the president kept and what is yet to be fulfilled. And pickup wars heating up with sales close to an alltime high, automakers are racing to release new models for the demand well show you the latest and greatest from the Detroit Power show rev your engines second hour of power lunch starts right now welcome back to power lunch. The markets, record breaking day, losing steam into the afternoon with the s p and nasdaq turning negative. Right now, the Dow Jones Industrial average is still positive by about 50 points, but it shot out of the gate this morning by more than 200 show you whats going on with the volatility index, jumping more than 13 . We actually started to see it creep higher, theyre going to flip this over any second, and there it is, health care leading the dow. Merck soaring on positive lung and cancer trials. And united beating estimates merck higher by 6. 5 united higher by 2. 5 . The loser, ge. Sources telling cnbc that a breakup of the company could come as soon as this spring. Not helping the stock. Still lower by nearly 4 after hitting alltime highs, big tech is losing its gains right now. Google, netflix, microsoft, and apple giving up their gains. Retail also weighing under armour, target, macys, nordstroms deep in the red they had a very good run brian. Thank you very much heres what else is happening. The final numbers out for online sales last year. As expected, it was another record year. According to adobe, the 2017 Holiday Season posted 108 billion worth of online sales. Thats a jump of nearly 15 year over year. Citi group says it will increase compensation for women and minorities in the u. S. , the uk, and germany. They found disparity in pay after conducting surveys its the first bank to respond to a shareholder push to disclose their gender pay gap. And nxp saying it will reject qualcomms tender offer because it undervalues the Company Qualcomm offered 110 per share in cash for nxp, a maker of chips for cars and wireless power. Well, the dow busting through the 26,000 mark earlier today, just seven trading sayses after hitting 25,000 were all over the rally and what is causing it to fade right now. From the new york stock exchange, mike santoli looking at the overshoot phase of the bull market. Bob pisani is tracking whats going on in the growth bob, youre up first what we have noticed for the session is volatility has been elevated even with markets at record highs and gaining steam as markets have been fading. Yeah, i want to put up the dow intra day if we can. The open was amazing 4 to 1 advancing to declining stocks we had almost 400 stocks at new week highs then at 10 30, it all faded. Volume picked up on the etfs, the big etfs that i watch, the vix moved to the upside. We went back and forth about the possible causes. There were some headlines out, reports about a Turkish Military buildup on the syrian border. That would affect the mideast and the kurds. That might have been a factor. Sometimes you get these geopolitical issues. But for sure, we saw the markets sort of losing steam at 10 30, particularly around bids getting canceled thats not where people come in and actively sell. Its where people who were buying normally stopped the bids and the market drifts out to find higher levels wrrg right now, its been a remarkable run. Nearly 400 new stocks at highs here in the nyse 15 out of 30 dow components hit 52week highs. Many were historic highs many in the Health Care Area and some like visa, also 52week highs right now. If you notice the percentage contribution for the dow 1,000, the last 1,000 points from 25,000 to 26,000, all cyclicals, boeing, caterpillar, home debow, 3m, major contributors to the gain United Health being a consumer type stock the other issue besides the cyclical rally we have been seeing has been tax reform analysts have been raising their estimates ever since tax reform passed on december 20th, about 2 higher for 2018, and thats a big move for three particular weeks. Guys, back to you. Thank you very much now, lets get down to mike santoli who is looking at a potential overshoot in parts of the market mike brian, yes, thanks. This overshoot phase, if thats in fact what we started to see this year, is not so much about todays fizzle but about the different character of this rally coming into 2018 and what i would characterize as an overshoot is an acceleration higher in prices from already high levels. And you have the public enthusiastic about the stock market we have seen that with inflows coming in. You see the riskier, more cyclical parts of the market way outperforming. Thats been a feature so far this year. I think what youre also starting to see is investors extrapolating good news far into the future if in fact this is the market phase were in in this cycle, it could go on a while. As long as the news remains good enough absent just this pullback, perhaps, from a short term excesses of sentiment and momentum, when we saw coming into this week, i do think theres a chance were entering this Public Participation phase of this bull market that might actually kind of take us well beyond fair value. It doesnt mean its a double, doesnt mean its a sugar rush, but it does mean you have increased the velocity of the market, and that connects to the higher vix and the potential for wider swings this year than last year mike, thanks. Mike santoli lets get to domchu for a market flash. Youre seeing a spike in h r block shares the company, alongside walmart, have announced a partnership where h r block do it yourself software for Desktop Computers will be the exclusive tax software provided on Walmart Store shelves over everybody else that announcement is whats propelling those shares higher obviously, not as big of an impact for walmart itself, but for those people preparing their taxes on their own using their own Desktop Computers, its a big deal for those people out there, they also know all those commercials coming about these days, they also use ibm Watson Technology for those particular products. Thank you very much, dom. Our next guest has a year on target of 2800 to 2900 for the s p 500. Here is scott, senior equity administrategist at wells fargo. Heres the problem, it hit 2800 today. Were there. Were going to be too low its january 16th what do you do i done think you want to annualize the returns we have seen so far, but our midpoint is 2850 and were not that far away this is a daytoday reassessment mike santoli hit the nail on the head when he said youre seeing a lot of public enthusiasm i would argue we have seen institutional chasing since the middle of last year. The public is starting to pile in here a little bit it feels a little bit like the very early stages of the silly season youre nervous then youre not thinking, oh, gosh, we have already hit 2800, and maybe we have to up it before the end of the year. Its more, maybe we stick with it because there might be a selloff between now and then. I think youre going to see some opportunity when you look back, we havent had a 3 correction in over a year all these leading indicators, and we project a lot of leading indicators as well tell us theres no recession this year. Probably not next year either. But you know, were hoping for more volatility because lets face it, while some Retail Investors might be chasing things here, jumping in with the institutional guys, theres still a lot of cash on the sidelines that investors, Retail Investors really want in the market so were phohopeful were goingo see back and forth action. Like today, michelle, these things, it was like it was shot out of a cannon on the open, and here we come off on no news. People are looking for reasons there doesnt need to be one well see a low of days like this and opportunities to buy stocks at lower levels im looking at my portfolio and looking at areas to trim in anticipation of the correction that you seem to be calling for, what areas would you be most inclined to trim at this point well, i tell you, for us, the way were looking at it is we want to be all in. And we like industrials. We like Consumer Discretionary we like financials we also Like Health Care so what were looking to do is not really trade and trim and trade the same because i dont think any pullback youre going to get is going to be all that big, even if its 7 or so, were not going to try to play that what were going to try to do is pound the table, make sure that our clients already have their plan in place. I mean, we want them to buy those sectors that are sensitive to a continuation of this recovery thats what we think is going to happen they need to have that plan and investors in general need to have that plan now you dont want to wait for the 7 pullback and then say what do i do now you want to already know what youre going to do, and thats step in there and buy. How do i raise the money to buy in a 7 pullback if im not going to trim now . Heres the situation, is if youre a typical retail investor, youre not 100 invested you have cash on the sidelines that you want to have in the market but you have been fearful, and maybe now youre getting a little more excited, and you want to put that money to work so for us, for our clients in general, and i think retail clients in general across the board, they have the cash. They have just been afraid to jump in and buy. So youre predicting a pullback of some kind, if anything, just because of reversion to the mean or statistics, but would there be a reason what do you think would be the biggest potential cause . Its hard to pick a trigger its not going to be Fourth Quarter earnings because lets face it, the forward look is whats important the results of the Fourth Quarter are nearly meaningless, at least in my opinion ia need some news, whether its the Federal Reserve tightening up more than what the market expects, if you start to hear conversation about that. Anything with interest rates, a stumble in the global economy. A problem with chinas credit, any kind of credit bubble or anything over there. You need some sort of an event an earnings miss, the markets completely not paying attention to Economic News thats missing. Scott, im sorry to jump in on you, because we have to go, but you hit on it. I wasnt going to ask a question, but im writing a piece tonight about china and how theres a lot of things happening collectively which are starting to make people nervous. How much are you growing nervous about a china slowdown because theyre pulling back on credit growth and pulling back on the growth of the money supply, and gdp numbers on thursday should confirm both of those . For me, thats one of the things i fear, is a credit problem in china, pulling back on credit, tightening on credit. Thats one of my worries my number one is the fed makes a mistake this year and tightens rates too much we have heard that a lot. Scott, thanks. Oil has been in a big league bull market lately prices rising, but there are two things you need to Pay Attention to roberto is joining us now. I appreciate your excellent morning notes. The two things i referred to, which might make an oil bull nervous are sort of the same thing, different but also collectively combined important. Number one, all these drill but uncompleted wells as price goes up, everybody gets greedy and theyre starting to open some of these up two, as you noted and we touched on, chinas oil imports actually fell 12 last month. Do we need reason to be worried about this bull market i think theres reason for pause, and we have to look at where we have come from to where were at right now you have a lot of subsectors in energy hitting targets like emp and mlps theres about 7400 drilled but uncompleted wells. Thats a concern plenty of production will be coming online. To that end, i think theres light in Service Names and in fr frac names, pressure pumping for the china numbers, i think its certainly notable, we had Something Like a 12 drop month over month from crude imports. A big factor is also what we have been seeing in the crude curve since november so rather than guys that are seeing drawdowns annually and an elevated spot price, rather than buy spot prices, they draw down inventory, that buying demand has subsided to a degree we can handle globally more production, if we start to drill more wells in america, and the rig counts show we already are, thats okay as long as demand here and demand around the world can absorb that increased supply the china thing you pointed out made me a little nervous do you think thats a onemonth wonder if china slows down, i could see a lot of supertankers floating around the oceans with no destination. Yeah, for sure. And i think the big commodity run weve had in the last two, three months has been predicated on a big china demand, big india demand and obviously, a big inflationary trade which has been happening i think its certainly an item to keep an eye on. You know, the other factor is china continues to move away from fuel such as coal and move toward l g, ppg, to a degree solar and tech formulas too. That to a degree takes away from the demand we see in the crude markets. If we see a blip in crude, and the demand which we have been seeing of late, thats a cause for concern. It could be the catalyst to take us lower are you bullish or bearish on oil or dont have a view i think there are concerns. And i think bob pisani touched on the volatility earlier. In the first hour, we saw the s p up at highs and the volatility of vix up 7 . That divergence is something our strategists pointed out this morning is pretty noted. I think the dollar is getting undersold. If we see a spike in the dollar, that could pressure commodities in crude there are a lot of subsectors of energy hitting intermediate price targets. The mlp index, a lot of these are at upside targets already. Roberto friedlander, pleasure, man. Thank you for coming on. Thank you heres whats coming up on power lunch. Sales of pickup trucks are red hot, and automakers want to cash in we have a preview of this years lineup as the truck wears heat up glaplus, as we come to the end of President Trumps first year in office, how many of his Campaign Promises has he been able to get over the finish line andig gwtin broh the future of media all that and much more coming up on power lunch. Cameras. The redesigned gla suv. At a price thatll make you feel like youve gotten away with something. The 2018 gla. Lease the gla250 for 349 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right financial advisor, life can be brilliant. When gasoline prices stay lower for longer, americans autos get bigger nowhere is this more obvious than the Detroit Auto Show where the big three are really showing off some big things. Phil lebeau joining us with more on the big trucks. And some midsized pickups, to be fair, as well, phil. Right right, midsized and large full size pickup trucks that are getting a lot of attention here. All three of the big three have unveiled either refreshed or brandnew trucks lets start with the ram 1500. This is a refresh. For the first time last year, ram sold more than 500,000 fullsized pickup trucks in the u. S. Hey, theyre starting to nip at the heels of the Chevy Silverado, which is also being reworked gm showed the reworked Chevy Silverado that comes out in 2018, really more like 2019, and then ford, reentering the midranged pickup market with the ranger which is interesting given that ford said i dont go if we need a midsized pickup truck a few years ago. Heres some of the executives talking about the importance of the pickup truck market, especially in this market overall in the u. S i think if you got to about a quarter of the market being cars and Everything Else being pickups and suvs, you would probably get it right. I think this is a structural change it cant be reversed so the capacity in trucks will be used. F150 is doing well that franchise is great, and this proves to us with this midsized category that we need to be there, and so a lot of what we have learned has come back with the ranger we have a good franchise around the world, but having it here in the u. S. Is really important one more note about the importance of pickup trucks. Earlier today, General Motors was giving its guidance for 2018 as well as 2019, and they said, look, earnings in 18 are about the same as 2017, but even better in 2019 why . Because theyll have a full year of sales of the revamped silverado lineup and their expanded pickup truck lineup these are the high profit margin vehicles, and the big three are all making sure that they have the newest models coming into the showroom this year and then early next year. A whole undoing of the obama legacy, isnt it wasnt this the whole push when they did the revamp of detroit and the restructuring, all about small cars so much for that yeah. And look at ford remember at that time, they said look, lets build small cars in the United States. Ford is essentially saying were going to get out of doing small cars were going to get out of doing sedans were going to focus on suvs which they believe is a permanent trend, as well as expanding on their strength with the f150. Clearly, detroit is moving farther and farther away from the car. All right, phil, thanks, at the Detroit Auto Show. Want to take a check on the dow, joining the nasdaq and s p 500 in turning negative for the session. This after hitting a new record in todays session, crossing the 26,000 mark for the first time the dow right now down a hair, now its um, but were watching it because it is fluctuating demand for pickups may be soaring, the record auto sales streak has come to an end. The sevenyear sales run fell short in 2017 with sales falling nearly 2 from 2016. Have we reached peak auto sales and what can we expect this year alex is the president and ceo of cars. Com, one of the largest car buying and selling sites he joins us live from the Detroit Auto Show. Great to have you with us. Do you think we have thank you for having me does that matter to cars. Com because you sell new and used cars correct the bulk of our business actually is in the used car market, but the strength of the new car market helps our dealer business so were rooting for both sides of the market to win what do you make more money off of, if theres a difference, a new car or a used car . Well, were not a transactional model. We run a sass based subscription model that allowed our dealers to compete on a level playing field. So the ups and downs and swings of the market dont directly impact our business. You make a big deal about the data that the consumers, that you have on your consumers so what sort of a critical Decision Making factor that consumers have right now, what are you tracking most closely in terms of whether or not consumers will buy and buy used or a new car well, i can tell you that we can see the car Shopping Patterns between new and used and by make and model. And whats awesome at this auto show today, what 17 new makes and models launching, consumers are overwhelmed with choices we can see their decision and their searching in real time, and importantly, then we can go to our manufacturers or dealers and show them that data, either on our mobile devices and show them what consumers are shopping for, and give them tools to helpfully switch the market in their favor. Starboard, the activist investor, took a 9. 9 stake in your company shortly after, you spun off which is formerly known as ginet. They say youre undervalued and you should sell yourself have you been working closely with starboard, are you open to something to increase shareholder value . Were always focused on increasing shareholder value were actively working with all of our investors and dont comment on the specific circumstances of those individual investors have you been working with starboard . Like i said, were in active discussions with all of our shareholders as a newly spun company. Thanks for your time. Appreciate it. Alex vetter, cars. Com. Bitcoin falling over 14 on concerns of increased scrutiny by governments around the world. Were going to bring you the latest coming up plus, President Trump wrapping up his first year in Office Candidate trump drew a strong line on trade. How does the rhetoric stack up to reality now that hes in office well take a look straight ahead here on power lunch. Experience the new 2018 lexus nx and the nx hybrid with a classleading 31 mpg combined estimate. Lease the 2018 nx 300 for 339 month for 36 months. Experience amazing at your lexus dealer. When we sauntered in this morning, the story of the markets was another record high. Dow 26,000 markets up triple digits the story of the markets right now is that it was one of the most incredible reverses that we have had in the past year or two. The dow is down negative, down 12 points. It was up as much as 282 points at one time. Well above 26,000. We saw the hats, the dow is now down 17 points sliding as well, the vix reflecting this as well. The volatility, the quote fear index. Its spiking more than 14 materials, energy, industrials, and Consumer Discretionary are some of the biggest laggards in a truly amazing market reversal. Lots more on what is causing the reversal more power lunch and giant ships. Straight ahead hello, everyone. Im sue herera heres your news update. The new billion dollar u. S. Embassy in london opening to the public today President Trump criticized it last week as too expensive and in a poor location adding that he would not come to london to open it because it was a bad deal cape town, south africa, is running out of drinking water. The citys facing its worst drought in a century the date faucets are expected to run dry is april 29th. Exacerbating the problem, almost 2 million tourists flock to the city almost every year the coast guard has been called in to help break up ice jams along the connecticut river. The ice sheets are creating a flood risk a Flood Warning remains in effect in both hartford and middle sex counties in that state. And its a girl for Kim Kardashian west and her husband kanye via surrogate. Their third baby was born early monday, weighed in at 7 pounds 6 ounces they have not revealed the new babys name, but congratulations to them. Thats the news update at this hour i think herrera west has a great ring to it you might have something there. Herrera sullivan west there you go. The oil market set to close for the day. Lets see if we had a reversal there as well. Jackie d. At the commodities desk crude oil pausing just a little bit today we said la week, some profit taking after an 11 run on a month is probably expected here. The question is if the support is going to remain the session low today was 6339 its well above the 60 a barrel mark whats more interesting, the session high was close to 65 a barrel that indicates a push and a test of a critical level to the up side oil was moving in lock step with equities today so something to watch here is that correlation, guys we will watch for that. Absolutely saturday will mark one year in office for President Trump. Were looking at some of the promises that candidate trump made on the stump and how President Trump, if hes been able to execute on them. Eamon javers joins us with more. Can you believe its only been a year . It feels like longer for those of us covering the wild ride of news in the past year. Buhas the president been keeping his promises we went back and looked at five key promises take a look at them on the screen the president made during his campaign he talked about repealing and replacing obamacare. He talked about building a wall and making mexico pay for it cutting taxes, cutting regulations, and renegotiating nafta. At the end of one year, how has he done. Pretty well in terms of keeping up with the promises taken step by step, building a wall and making mexico pay for it, that one is going to be incomplete, ultimately but cutting regulations, thats a promise kept as we go through the list here, you see that the president also kept his promise on cutting taxes as well. The president here has been able to keep promises on a couple of key items that he promised his base i think the base is going to stick with him, ultimately the base has seen a lot of these controversies over staffing here at the white house, over the president s tweets, this controversial new book, they have stayed with him through all of that. What the base is getting out of this is some of the things they voted for, including the idea of tax cuts and a regulatory cut here at the white house. Those are things very important to those voters, as long as the president is delivering on those, i think they stay with him through the next year and into the midterms, but well see how it goes politically. Back over to you thanks very much. One of candidate trumps most frequent targets was u. S. Trade deals from nafta to tpp, he promised to renegotiate across the board how has the president done in office pt. Ps vows to rip up trade deals and slash the trade deficit touched a nerve in the rust belt states that propelled him into office, but the vows have proven harder to implement in practice than in theory he did on day three withdraw from the u. S. He withdrew the yew from the trance pacific partnership. That had already been rejected by congress. The white house pledged bilateral deals in asia instead, but officials tell cnbc no such talks are currently in progress. Then theres nafta President Trump kept up a tough veneer on the deal during contentious talks in year one, but appears to be softening. Most recently telling the wall street journal, im leaving it a little flexible, because they, mexico, have an election coming up,e end quote. But the singular source of hisire continues to be trait deficits imports grow faster than exports, causing the deficit to widing by 8 u. S. Deficits with frequent targets of trump, china, mexico, japan, korea, all of those are up the administration is eyeing some policies to chip away at those deficit. And still potential tariffs on steel and aluminum is another. Were see whether they deliver on those and what the final deficit numbers look like when they come in in about a months time back to you. Kayla, the supporters of trade certainly didnt see their worse fears. There was talk of day one, tariffs on china, tariffs on mexico that actually hasnt happened. Much slower and much more incremental and tiny little steps. As Newt Gingrich said last week, the president s realizing a lot of these issues are much more complicated than he originally thought when they were on the campaign trail he has launched a series of investigations a lot of those are coming to a head but youre right, michelle some of the worst fears of proponents of free trade have not come true, though if the president does feel like he needs to hand another win on the trade front to his base, like eamon was mentioning, perhaps thats something he could still consider quite possible. Thanks, kayla. Well, we had another record day for the markets. The dow up nearly 300 points at one point. Broke through 26,000 for the first time ever. Fastest 1,000point gain in history. But the rally, not just fading fast, it has faded dow is down, down ten points lets bring in jim paulson, chief investment strategist, and youre not a trader. Im not going to ask you about why were down now versus why we were up two hours earlier. However, however, we dont see reversals like this much do you think this 300point reversal signals something more worrisome . Well, its hard to say, brian. In some ways, we have had so few of these recently, its almost refreshing to see a pullback, if you will i think whats going to be interesting, if this ends up down for the day and is down maybe somewhat this week, it will be interesting to see if theres buyers on the dip here coming in, or if people are taking a pause here and there wont be fresh money coming in to buy this dip. That may say more than just this oneday pullback, what this may mean i do think, brian, this thing has got incredible positive price momentum, broad participation to the upside, but the challenges here are truly increasing i mean like what china, by the way, again, china, not something we have talked about lately however, theres a lot of data points that are coming out on china lately which are not the most optimistic, shall we say. Hot is your biggest challenge for the continued growth of the u. S. Stock market, jim well, i think its a combination of things that are coming together. One of the bigger ones to me, the most striking aspect of this year, just the optimism that has broke out. Its really overwhelming and its so striking because we havent had it in the entire recovery the wall of worry was probably the cornerstone of this bull market climbing a perpetual wall. That is gone theres optimism thats clear. I think that opens you up to the bears bite a little more when people are getting up over their skis with some aggressiveness for the first time if you put that together with record setting valuations, the median u. S. Stock in midyear last year went to its highest level recorded in the postwar era in terms of a price earnings multiple, for example. Then you certainly have had rising yields now for a year, a year and a half, that is pretty sizable for anything five years and in youre starting to get the tenyear now within a few basis points of a threeyear high. If im all in, do i sell . No, i dont think you sell, but i do think, michelle, that you maybe start to raise some cash one thing thats different is cash for the first time in this recovery actually has a yield. Thats true a positive yield. Maybe some intermediate like cash returns of around 2 area makes a little sense if the market keeps climbing while yields keep climbing, i might add to that. I might also put some commodities in the portfolio in the form of commodity etf or something. And i maybe would move away from the United States offshore, which i think has fewer of the challenges were facing here i would certainly debond my stock portfolio, make sure im not holding bond sensitive securities there are some things to do. I would say if the market keeps roaring ahead, you know, s p through 3,000 and tenyear yield heads up toward 3 , i would get more and more defensive maybe with cash. But right now, i prefer to not run away from this market as much as change my ponies own more capital good stocks, Less Consumer stocks less bondlike stocks, that kind of thing im curious what your take is on whether or not investors in general, whether they would be Institutional Investors or Retail Investors, if there is money on the sidelines, we have a lot of technicians say the market is overbought we need to look at rsi on the dow, when you look at the percentage of s p stocks above their 50day moving average, all these indicators indicate that the market is overbought, in fact, and then you have fundamental strategists saying theres a lot of money on the sidelines. Where do you stand on all this does this all matter well, i think there is a lot of money on the sidelines. I dont know if that will really be brought out, though, melissa, until the bond yields start to move and create pain on the fixed income side of the equation in a bigger way and im saying in the tenyear yield in particular. And it will be interesting to see where they go with that. I suspect they wont necessarily go to stocks as much as they will just to cash if they start to get paid. So im not sure theres going to be a lot more money drawn in to equities in a big way. I do think technically the market is extended and overbought and due for some sort of pause and i really think the pressures are building, as i say, particularly if inflation picks up in any major way here, and commodities are showing that right now. Of not just a pullback, but a fullfledged 10 or 15 correction some time this year its been a really long time. Thanks, jim. Thanks. Movie pass now has over 1. 5 million subscribers. Half a million of them joined in just a month straight ahead, well talk to the ceo of movie pass about at driving the growth and how he wants to change the movie business dont move moviepass, this is the startup that gives moviegoers unlimited passes to movies for a monthly fee. They just hit a new milestone, surpassing 1. 5 million subscribers. Its latest 500,000 members subscribed in less than 30 days. Mitch lowe is the ceo of moviepass, and a former netflix executive, and he used to work behind the counter at the old vindio rental shops. Good to have you here. With jay and silent bob they were hidden behind the curtain. I want to make sure i understand this. You charge 9. 95 a month if i buy that pass, i can see as many movies as i want in a day, in a month, correct . Well, limited to one a day. Limited to one a day. Youre buying the ticket from the movie theater, right so youre paying full price. You dont have a deal where youre getting a volume discount in most cases theres a growing number of exhibitors giving us a 20 discount or more in new york city, if i see at least one movie a month, you are losing money on me yeah. So are you the gym model. You hope people get the pass and never show up . Not at all. We want people to go at least once a month we need to get a growing number of subscribers in lowercost markets. Remember, the average cost of going to the movies across the United States is 8. 60 so it just so happens that new york, l. A. , San Francisco are high priced. So this isnt about getting data, right . I read some places where you actually dont care about people going to the movies or whether or not their loss leaders to amalgamate a big ton of data on our habits and you can sell it the hardest thing in the movie industry today is connecting a great movie to someone who wants to see it. Everybody gets influenced by the Big Marketing dollars. But theres tons of great films being made that cant find an audience what we do with our data is we get people into the movies, especially those under 50 Million Box Office titles. Like the lady birds yeah. We are buying right now 1in every 35 movie tickets in the United States, but when we promote a title like lady birds, were buying 10 of all the movie tickets for that film in the u. S. So were tripling the volume of those small films. When you promote lady bird, what does that mean, they have hired you, youre selling revenue . Thats another round of revenue . A big revenue stream. We have signed four deals with studios, and youll see many more of those, where they pay us on average 2 for every ticket we buy to their films as a marketing rebate so youre getting you have deals with studios some theater chains dont like you at all youre in a legal battle with amc right now, which does not want to be part of the moviepass system cinemark has launched a competing service to moviepass doesnt it just take the theater chains and say were not doing moviepass, and youre out of business no, because we have a granted patent on a mastercard product that allows our customers to use that mastercard. They cant block that they cant block it if you recall, amc had an emergency Board Meeting on august 15th when a small 9 Million Company launched a service. And they wanted to stop us two or three months later at the earnings call, he said im happy to take their money. I just dont understand how theyre making money you know, i wanted to say to him, you have had to borrow 6. 5 billion to stay in business. And were driving more people into your theaters, paying full price. You should be happy about that you used to work at netflix what do you make of this arms race for content where all of these Companies Like facebook and hulu are spending so much and now competing for the budgets . Its fantastic. For writers and for content creators, this is like the renaissance. Theres so many great shows to watch. I have never seen so and i watch all of them. I think this is really going to drive up the quality of content, but too, this content is as good as anything in the theaters. This content should also be seen tv is the new i dont want to say tv is the new movies. You might slug me. Arent you worried about that i want to stay home and watch the rown. I dont go see the movies. Whats really surprising is despite the fact that movie theaters have doubled their prices over the last 20 years, the decline in ticket sales is only about 3 to 6 . So while theres this slight decline, and besides that, now theres netflix and hulu and all these other options. Yet theyre still selling 1. 3 billion tickets every year to the movie theaters quickly, best movie you have seen lately. Not lady bird, not star wars give us something. I have low level tastes i dont care. I love jumanji. The new jumanji, just,jumanji. I foergot about everything thats going on, all the pressures of business and went off into a different world. You like the new jumanji. What do you think, melissa . Probably not. It will be considered. Good to have you. Mitch lowe, ceo of moviepass. The rally continues to fade and fade badly the dow was up 282 points at its high and now down 100. This is the biggest reversal on a percentage basis since february of last year. Is this bull finally showing signs of exhaustion. Well take a closer look next. You cant predict the market, but through good times and bad at t. Rowe price weve helped our investors stay confident for over 80 years. Call us or your advisor. T. Rowe price. Invest with confidence. Biggest stock market reversal since february of 2016. But does it mean anything . Rich, technically, this kind of reversal, rank, turn around, thats my universal symbol for turnaround. Does it mean anything technically longterm or a oneday interesting anomaly . It doesnt mean anything longer term. Keep in mind big round numbers like 28500 on the s p, 65 in wti, they offer a very convenient psychological place for us to catch our breath, but this is outstanding market shortterm and more structurally as you you alluded to. When you look at the oneyear charnlg chart, while the slope has gotten vertical, there are no true signs of exhaustion here on todays intraday eversal. I think we get to 2840, 2850 on the short term on this leg of the move when you look longer term, this is a compelling structural setup, visavis the bubbdouble bottom reversal. We have longer term upside to 3200 on the back of a weaker dollar, lower yields, et cetera. Doesnt change your views michael, not proclaiming to be precognitive, but i suspect youll be getting calls from your clients later today, im sure youve gotten a few already, that are saying, hey, mike, what happened today . What are you going to tell them . What are you told them this means were back in action the volatility is positive when it comes like this weve seen the markets go straight up for so long. And you have investment professionals who are looking for some volatility to actually make some changes in portfolios. You have analysts, traders, you have investment professionals and investors saying what does the tax overhaul mean to companies, what does it mean to us as an economic glrower and where will this take us in the future and on a positive earnings expectation week coming up, i think this is only helpful for us. Only helpful, okay. Well, you know, thats going to be the headline tomorrow about the big reversal thank you both for more trading nation go to our website tradingnation. Com. Now the latest from tradingnation. Cnbc. Com and a word from our sponsor. One way to manage a winning trade is to place a trailing stop order when your target price has been reached a trailing stop order is an order type that automatically moves your stop loss higher as a stock moves up, but when the stock moves down, it will remain at highest level it was dragged to, keeping you in control of your trade alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Weve got an intraday receipt versal it shot out of the gate this morning, and fading fast, we dont have a hard reason why, but certainly we had a massive rally going on something to watch. Volatility was high all session long im watching shares of General Electric some people are finally saying, they are entertaining a breakup of the company, why is the stock down partly because it had been up so much year to date. Also there is analysis of w cohen had a analysis note saying ge was worth 11 to 15 a share compared to where the stock is trading now. Mine is a piece im writing up which is it time to start worrying about china gdp out thursday credit expected to slow. Big Infrastructure Projects going unfinished the u. S. Blocking some deals a lot of individual headlines that dont mean much, but together they may mean something. Absolutely. Well watch that thanks for watching power lunch. Closing bell starts right now, so dont move. Hi, everybody, welcome to the closing bell. Im kelly evans at the new york stock exchange. Ill bill griffeth. What a day stocks started off with a boom but fallen back down to earth. The dow was up 283 points. We broke through 26,000 for the first time ever. Only seven days after we hit 25,000 im stealing all of don choos thunder, im sure. The cooloff, the drop in the afternoon. Did we hit a wall of resistance or Something Else going on here right
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