Transcripts For CNBC Power Lunch 20180126

Out my myspace page. Power lunch begins right now and welcome to power lunch. Im melissa lee. The dow and s p both hitting records. Neither had back to back losses so far in 2018 all three major averages on track for a fouj straight positive week and on pace for the biggest monthly gain since october of 2013. And 3m and intel soaring and dividend hike. Well check out the other movers colgate is down. Revenue falling short. Honeywell is higher on the earning by 1 . The company also raising the outlook in starbucks, down 6 revenue missing forecast sales growth expected to come in at the low end of the prior 2018 forecast thank you very much. Welcome, im Tyler Mathisen and get you up to date shares of wynn tanking now down 7 on the reports of Sexual Misconduct by the ceo and founder steve wynn the wall street journal reporting dozens of people coming forward, more on this developing story ahead us economy growing steadily in the Fourth Quarter of last year but losing steam from the summer demand, however, for durable goods soaring last month coming in way above expectations michelle. President trump taking the stage this morning in davos. His first ever trip to the World Economic forum yesterday he told our joe kernan he was here to make the pitch for businesses around the world to come to america and this morning he told those gathered exactly what he told cnbc. Im here to deliver a simple message. There has never been a better time to hire, to build, to invest and to grow in the United States america is open for business and we are competitive once again. Was the president s pitch on target how should we rate mr. Trumps performance in davos im joined by tony fratto, rt former white house treasury official for george bush and gene sterling. And fred kemp, and president and ceo of the atlantic council. Good to have you here on power lunch on this cold evening. So there are so many people here who dislike President Trump and yet as one journalist tweeted out, boy, they all acted like they were at a Brittany Spears concert and taking pictures like crazy. They were dying to see this guy. So two things i was there. I was in the line trying to get in these are the people i would say 99 of them would have voted for Hillary Clinton had they had a vote theyre international. And they were fighting to get in the room fighting to get the seats. It was a full house on friday at the World Economic forum that is not usually the case then it was a hot room when you sat down ready to bite, ready to boo, ready to hate what he said and President Trump pulled off something i didnt actually know was in his repertoire, which is he calmed the room with his speech and it was just an amazing performance. Trump certainly graded himself well enough that very high level person in World Economic forum expects he may come back next year. Do you agree or disagree. It was great having the whole delegation in the United States. The donald trump that they generally see here on their television extremes is a loud and combative but he was reserved and his audience for the speech wasnt necessarily the people in the room, i had people here and the talk around davos is it is a 2 00 time slot. On friday. On a friday but it is the best time slot if you are in the United States it led the news today, everybody carried it live back in the states. We talked about it all week. It was actually the Perfect Timing for them and i think his message to for the american audience and not so much for this audience, exactly. Gene, i bet you have a different view. You know that is true President Trump has mastered one thing, the man has the lowest expectations for anybody ive ever seen. The general positive reaction was he wasnt as terribly offensive and divisive as weve heard him other times. Look, im for president of the United States coming to celebrate our economy and encourage people to hire i special was for president obama and clinton doing this i make two points, though. One, his description, it doesnt help to be just beyond what are the fakes when you are describing thing he described it as a whole new era of job creation under him. Lets do the facts for a second. 2017, the worse job growth since 2010 in the four years before our average job growth was 214,000 a month. It is 20 lower, 171,000 under him. Im not blaming him for. That im just saying but you could quote an Unemployment Rate that is approaching a three handle and a stock market up dramatically and wages starting to rise. First of all, all of those things that were positive was because of the very hard work done probably started in the crisis, really, with president bush and with president obama. And yes, you can confuse somebody as ann richard said who is born on third base for thinking they hit a triple but anything good happening is a continuation, including some rising incomes of things that happened before that and i think it is worth at least getting straight and the second thing is the divisiveness that he has caused is harmful to our country. There were leaders here from the tourism and travel industry who are think we are not benefiting as much because of the comments and the fact but dont you think the speech today was designed to amealy or rate that and try to to try to send a different message . What did he say he said america is not just first, it is not america only, and then he didnt say after that, we should cooperate more, were all stronger when the world is stronger when we Work Together he just said, well if were doing well, it will benefit others i dont think he did much to take away from the profanity hes used to describe about a third of the countries in the crowd, i think he just literally was not quite as bad as some people thought. But the message is america is open for business. Did he get it across is it going to work . Look, i come here not republican or democrat im a recovering reporter of the wall street journal in my current guise and you have to report what went on the in the room which is people didnt leave being in love with donald trump. But they left feeling that they had to reexamine their current thinking about him as a leader and that is about as best as he could have come out of it. In terms of the numbers, the tax cuts, there are a lot of people in davos this week that are thinking about investing in the u. S. In a way they didnt six months ago now part of that is the pressure and the retail sales of a president who is not afailed to call up a ceo and say dont move your jobs to mexico or youll suffer but part of it is they do see tax cuts, the repatriate line on microsoft i did a little surveying with Business People afterwards a lot of them talked about that and said good heavens, maybe we should get some of the money gone to ireland back to germany or france and so they werin pressed by the repatriation and the investment by microsoft. That would have happened under any administration but im not sure the repatriation would have. There is nothing wrong with a president coming here and krohning about the economy it is also good for for the Global Economy that the American Economy is strong. He said himself. And he did just pass his signature piece of legislation and so hell do that what was missing for this crowd in particular though were two things no one in that crowd thinks that america is globalizations big loser. They look at United States and they say the United States always wins. And so they dont see it the same way as the president did. They do appreciate the message on if were going to have a rules based trading system, we should follow the rules. If you think about the message of the World Economic forum, it is lets help raising Living Standards in the poorer countries and that part was missing from the speech. That wasnt part of his message. Great analyst breaking news and back to you. A developing story were watching closely at this hour. Shares of wynn resort plunging, down about 9 on reports of Sexual Misconduct by the ceo and founder steve wynn Contessa Brewer is here with the details. The wall street journal published this report recounting dozens of people saying there was a pattern of Sexual Misconduct at the at the behalf of las vegas mogul steve wid wynn we have received a statement from both steve wynn and the company to cnbc and here is his statement. The idea that i have ever assaulted any women is preposterous we find ourselves in a world where people could make allegations regardless of truth and a person is left with the choice of whethering insults they goes on to blame his exwife for instigating the allegations with the wall street journal and the investigation. As she has filed a suit to renegotiate the terms of their divorce. She wants to sell some of her stock shares wall street journal said an attorney for her said she is not behind instigating the allegations, although in the document she claims that she knew about the assault here is the company wynn resort statement. It is noteworthy that alamo miss wynn said she knew about the 2005 allegations she never made them known to the board of directors of which she was then a member and didnt raise them until after mr. Wynn repair yesterday and the shareholders voted not to elect her to the board. This divisive divorces with big news in las vegas. Big news for shareholders and investors because he owns 12 stake in this company. Here is what is noteworthy he is central and integral to this company when i went to wynn Boston Harbor it was clear he is involved from the ground up at every level of design and planning of these projects and so anything that might take him out of the mix in terms of leading this company is important. He gets down to the details of even picking the fabrics on the chairs in each restaurant and the chairs, if there is a rock star ceo in the gaming industry it is steve wynn. But elaines statement through her attorney opened her up to a potential liability in terms of being a board member and knowing of allegations of misconduct by the ceo. And there was a 7. 5 million payment to a woman who said in 2005 that steve wynn sexually assaulted her and she was a salon manager and manicurist and there was a complaint filed with human resources. Now wynn the company said that the Company Requires all employees to receive annual antiharassment training and offered an independent hotline they could use anonymously without fear of retaliation. And not one complaint was made to the hotline regard pmr. Wynn but they are finding dozens of people that could find a pattern of sexual abuse. And we are doing our own independent reporting and hoping to confirm the allegations. Joining us now is one of the journal authors of the piece chris, thank you for phoning in. Im sure it is a busy day for you. Is it possible that perhaps it is elaine wynn behind this behind this story in terms of helping to expose this . No. And their lawyers say, and as we say in our story, we never spoke to elaine wynn for for any of this reporting we of course tried to contact her but we did not get any return calls from her. And in fact, really had done a lot of reporting on this already up until the point we reached out to their attorneys that was fairly far into the reporting process. Take us back through the history of this of this reporting. And of the allegations against mr. Wynn, including as contessa reported, a 2005 incident and or settlement in which an employee of wynn property was paid 7. 5 million when did these allegations begin and how many people are involved and where or when do they end . Right so initially so there was some of this came to light, none of the specific details but there was a hint of a detail in a lawsuit involving elaine wynn and steve wynn that came out probably two years ago at this point. A little less than two years ago. It was a vague reference to a settlement with an employee but it was nothing else than that. So that was that was an initial launching off point for us but frankly we didnt have to look very far to find a larger pattern of this and employees who once we started reaching out to them, it took work because again as we sort of note in the story, there is a big sear of the power of steve wynn, particularly for people in las vegas. And so and chris, it is Brian Sullivan that was my question to you. Which is is this, steve wynn, to contessas point, he is this company. As you note, his signature is the company logo noib in america is nobody in america is identified with the exception of President Trump you obviously did a lot of reporting on this. How long did you report this story and are the people that you got to talk, what percentage of the people you did contact simply would not talk to you that they were still afraid to speak out against steve wynn. A very High Percentage of people were unwilling to talk. That is why we had to be very targeted about this. Weve been reporting on this for at least two months. And initially to a person every conversation started with with generally a fear and a even for former employees, it was i could lose my job over this and we sort of asked, you dont work there any more, right . And they would say yes, but he controls las vegas and controls nevada so there is that perception. And certainly in the wider u. S. , if you are a casino patron, or stayed at his hotels, his name is ever where. Signature is on the building. How many women allege Sexual Misconduct on his part how many how many . Certainly more than a dozen that we have contacted you could see the sourcing in our article. As far as there was a difference a pattern of people who there were people who had direct interactions with him and that was around a dozen. And then there were certainly more than that who had who had knowledge of others. And in some the cases were very careful with our sourcing, but we we have covered a period of going back to certainly the 1980s in which there was knowledge of this sort of Sexual Misconduct chris, were going to leave it there thanks for joining us. Chris kirkham of the wall street journal. This is a story well keep our eye in and for any developments well bring them to you. It is worth noting the stock is down about 7 . They had just reported better than expected earnings and the stock was at levels yesterday not seen since august of 2014. So this is a stock that had been doing quite well well see what the ramifications are. And were trying to get analysts on the phone and im sure youll talk about this in fast money but the question is he owns 12 of this company. Investors are saying the company is worth less without mr. Wynn he is in his mid70s and legally blind for sometime it is not inconceivable to think he will not survive this scandal from a corporate perspective and the question is what is the Company Worth if he is no longer involved and ill tell you what, on the last Earnings Call this week when they were reporting earnings that beat the top and bottom line we heard an enthusiastic, dynamic invigorated steve wynn looking forward to what they are doing with rebranding properties and pushing forward with las vegas he is bullish on his company well see how this shakes out here well bring any developments as we have them. And on a prosayic report. We added a bunch of rigs according to baker hughes, we added is it 12 since last march and all of the rigs are being added in texas and in the Permian Basin of texas that was all of the game was just that region. Look out kids old people are taking over the internet well talk to one analyst who said facebook and google are going after grandma. And speaking of hightech battles, it is alexa versus siri in the fight for the home, can the new home pod drown out the echo anything worth pursuing hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. The recordbreaking rally is rolling on the dow and s p 500 shocking shocking and hitting new highs again today. And the mountain of money pouring into stock funds also hitting records. Where should you put your money to work in this market mona mahagin. You got it right. With alleyons Global Investor and chief Investment Officer with peoples united Wealth Management. Folks, welcome good to have you both here mona, do you see any clouds on the horizon. I dont think any of us could expect that 2018 will be as favorable as 2017 for equities but are there big clouds that could really derail . So you know, i think a historic market rally is in order here because were at a historic time in history we have strong Earnings Growth here and globally. We have a strong economic picture and we have yields that have not yet moved too high. So from all three of the funds, were doing very well. And so im not surprised that this market continues. Now that being said, we are seeing signs of some late cycle behavior the Retail Investors now over70 is in equities and commodity price increases and are we toward the end of this nineyear bull market or toward the beginning, i would say later stage cycles so when i think about clouds on the horizon, really what will derail this market is an economic downturn. And with that in mind, is it time to maybe take some chips off the table . Were advising clients, we could we would agree with the points mona just made but we would advise clients stay invested, we had expectations that the s p 500 would do better than bond this is year and we think it will continue to do better than bonds. But were concerned on the investor psychology standpoint and advising clients dont chase this market and be cautious and make sure you have your investment policy kwsquared away and you are comfortable with it and we wouldnt advise chasing but stay invested. We think it will move higher during the year. I just ran a search, the average earnings ratio of the s p 500 is 96. That the skewed because some companies are newspaper the thousands because they have no earnings and the median trailing is 86. It is not far off. Justify the value agations of ts market if you can. The valuation is high could you take a look at the cape and ford and trailing pe, stocks are expensive one of the things were tacking with clients about and we put this chart in our outlook to all of our clients just a couple of weeks ago. During the last three fed rate cycles from start to finish, equities were higher but the ride got very rough. The biggest decline was about is it 12 what were concerned about, the valuation is part of the cause of the volatility and were concerned about the clients chase the market and get scared once we start to see the higher volatility that we anticipate. So it is more investor psychology that that investors could get spooked and get whipsawed by this market and that concerns us quite a bit. Mona, you are nodding. Yeah, typically the last leg of that market could be quite robust think back to the 99 cycle where tech stocks just boomed until we busted. Until we did. Until we didnt and so we also are advising our clients dont get out of this market but think about how you want to be positioned for this last leg. Take some of the gains on tech stocks youve done so well in and position into value and think about International Equities the u. S. Is toward the end of the cycle but we have china and japan and europe they are behind and cheaper in valuations as brian said so those are some of the factors that were thinking about through the next leg. Mona. Im very happy i got your last name right. Excellent aplus. Well done thanks for being with us and i could say john trainer, thank you. Fantastic great. If you thought teens and millennials were the biggest target of facebook and google, think again. Our next guest said baby boomers will fuel the growth and anthony great to have you with us. Hey, how are you . Good. It is fascinating because when snap went public, it seemed like the 20yearolds and the 15 yeerl 15yearolds, that was the demographic and snap had a lock on it and were doing to the other extreme. Why is this demographic so desirable. Well, were often asked which demographic will drive the growth for the large internet platforms and it so happens that 14 million americans, 55 and older, are expected to become new mobile users of the internet over the next four years and this is a cohort that to your point, although a lot of the focus is on the millennials, this is a cohort that has at least 30 annual greater purchasing power than the millennials and so we think there is a lot of net wealth there to tap into, at least 1. 5 trillion and while i head tate hesitao use the word targetingbecause there is how they could target to demographics or based on data but as older people get online and start using these consumer apps this could unlock the 10 billion in Health Care Marketing of which less than 2 today is dedicated to digital. So this could really be a big Growth Opportunity and we see this in terms of the user interface and the products that the Big Tech Companies so this is not even about the large numbers, just because of demographics that baby boomers have, it is the notion that increasingly more of them are going to be online so this is an additional user that exists in the total addressable market. Right yeah, exactly. And it is anadditional user. It is increasing the tam in terms of the number of users and the time spent because this is a demographic that watches a lot of tv and as they shift with the help of this is a theme for snap and a theme for twitter, improving the user interface and making it easier to use for folks like like my parents who may be less fluent in using their phones this is a demographic that could drive as you think about saturation of the younger demographic, this is a demographic international that could really drive the growth. Anthony, im loving this im so loving you right now. Giving some props to baby boomers like me. Youre desirable. But will grandma feel the next leg of internet growth. I leave the bus right there. But im shocked im very surprised that there are 14 million baby boomers who still arent not online but not using mobile devices that is number one explain that to me and number two, would you assume that these baby boomers, grandmas or not, would you assume that they are going to go to the big name brands like facebook, google, youtube, the ones that are familiar and comfortable as opposed to nichier things. Yes on both so the penetration rate for this older demographic tends to be more in the 70s. Where not age in terms of percentage versus 90 for younger demographics an the detailed information in our report, this is the weekly theme that we put out, talks about which apps the older demographics prefer. And they are the bigger brand names that you would think so it would be amazon, and alexa and home assistness. You are about to talk about that will make it easier and then google maps and facebook as well certainly. Those are the top three in terms of ad preferences for people americans 55 and older for the baby boomers. Well grandma but i got some hate mail from my parents for this spot, but it is going to be a demographic resource. You tell your parents they could call me and have a support group. Will grandma fuel the next feeble dimpled leg of noinintert growth im going to get rid of my flip phone now, anthony, and put away and sell my radio shack trs 80 computer just because of you. Al right im not giving up listening to cds. They sound better why would you. Alexa, get off my lawn. Thanks. Thanks for having me onnish say for having me. Say hi to your parents. Put poly grip on the list, alexa. And apple sold its home pod do not eat these pods l. This touch off a home assistant war alexa versus siri versus hey goo Google Michelle in davos. You are having fun. It is a busy week capped off by the president s speech this morning. Coming up the editor in chief of time magazinjoe ins us live from davos to break it all down. Dont move contemporary cockpit, 360 Degree Network of driverassist technologies and sporty performance whats most impressive about the glc . All depends on your point of view. Lease the glc300 for 449 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye we help all types of businesses with money, tools and knowhow to get business done. American express open. Hello, im sue herrera here is your cnbc news update for this hour. Attorney general Jeff Sessions attending the Drug Enforcement agencies Graduation Ceremony in virginia he addressed 42 dea graduates saying President Trump and the Justice Department support them and their families im here today on behalf of President Trump to say thank you to all our Law Enforcement officers, especially these 42 graduates and to their families. He the president is a strong supporter of what we do. Russian leader Vladimir Putin speaking to factory workers about the Strategic Bomber the planes that look like the b1 cost 269 million each. And the irs is dubbing today earned income tax credit awareness day. To encourage those who are eligible for the tax break to claim in the agency said about 20 of people who qualify for the credit fail to claim it and theyre missing out on thousands of dollars that is the news update this hour ty, back to you. Melissa said she celebrated earned income tax credit awareness day by eating cake so well celebrate and bring some champagne shall we. I think that is a good idea. What did caesar say about that w2 [ inaudible ]. That is not funny check on the markets right now. The dow and the s p 500 both hitting record highs all three averages, the major ones on track for a fourth straight positive week. That would be four out of four for the new year. The stock story of the hour, however, is wynn resorts those shares getting hit and hard down now more than 8 on reports of Sexual Misconduct by the ceo and founder, the man whose name is on the brand, steve wynn. Much more on this developing story ahead. Well after a long wait, apple finally getting into the home speaker game today. Preorders for the new home pod begin today. Taking direct aim at amazons echo and google home this comes amid a tough week for apple, it is down 4 in an up market and there are growing concerns, not among everybody, but among some that iphone 10 sales may come in down and managing director at bti and ault ill start with you ant the stock. A couple of downgrades which is rare i thought it was illegal for apple. They got a couple. Are you concerned about iphone sales . Im just concerned about the mix. It is a harder for analysts to figure this one out because it is the wide estrange we wide range and everyone is trying to figure out this quarter and next quarter and as a result the expectations might have gotten ahead of them. So im less concerned about what happened in december and more concerns about what that guidance is going to look like for that march quarter if con ses us is 68 billion there could be a wide range, but they could guide to as low as 60 million in terms of revenue. I hate to seem like this is gaming the market. But it is a good setup going to Apple Earnings next week for the downgrades and the estimate cuts for the stock to be down 4. 5 on the week into earnings. Exactly right you could say it is a very smart of apple, not that they are doing anything there were talking about the home pod. It is a catchup product i think it is with echo having been out for a while and googles speaker has been out there for a little bit as well, it is a weird in between spots it is a higher end device, it is sold as a speaker. It is a home speaker, like a son os but it has siri and the intelligence, the a. I. That echo has with alexa it doesnt own either one out right and that is where i think the problem is for apple if im in the market for this kind of thing, what do i get out of this i cant get from the existing products in the mark place and that is a big question mark on this. Once upon a time when apple would come second or third or fourth to the market with a product, consumers would give them the benefit of the doubt and say it is an apple product, ive got max and ill get that product. Have they lost that. They are losing the edge. And even if they came late, it was a best product or the best version of that product. Right. But the camel was firps of the airplanes but where are they now. I dont care who is first. Do you think the home pod is worth double the price of the other products or triple the price. Or triple the price again, it is home music, it is such a personal thing. That is what is also harder here is that you might already have a setup you like and dont want to mess with it for First Time Buyers there is opportunity and that is something they could tap into. But again i think they are late to the game on this. They will sell the product i dont think in droves. I dont think in a way that makes people think differently about what they do in their home. Walter, does this move the stock needle either way . Well first of all, everyone seems to think that apple should price their products lower this is this is the story from the phone to the watch and to everything and they still are seeming to be able to sell the phones and sell these products at a high price battle for the living room has just begun people are watching their content in different ways and people are disconnecting from the bundle so whether it is the pod or the apple tv as it evolves as a platform for people to man manage through the multiple content applications from the current bundle this is very early stages. So home pod is one of multiple strategies that apple is trying to use as halo effect of saying, hey, you are looking at your content on the screen on your telephone or your smartphone and your apple tv and the home pod will play into that battle for the living room. Which again is just begun. It is a trojan horse for a. I. Right. They have phones, but it is specifically designed where you interact in this voice way, it highlights the a. I. Component of it i think that is a real play. And again it is smart for them to do that theyre a. I. Has to be that much better for people but they already have the a. I. At home i could do the same thing with my home. And if you say, hey, siri turn my lights on and off, they dont need it just exists in a phone not a dome in a phone. Walter, and edmond, thank you very much. And have a good weekend. Hey google. You just turned on about a thousand devices. It is the last day of the World Economic forum here in davos, switzerland and the Business World has been focused on President Trumps closing key note speech. Trump made a big sales pitch for investing in america and explained his America First message. America is the place to do business so come to america, where you can innovate and create and build. I believe in america as president of the United States, i will always put America First. Just like the leaders of other countries should put their Country First also but America First does not mean america alone. Goldman sachs Lloyd Blankfein just tweeting, said give trump credit for campaigning where there is r no elect or votes his missage, promoting americans interest. Doesnt mean withdrawing from the world. Agreed now we can stick with International Commitments on environment and trade and defense. And trolling at end. And Time Magazine gets ready for the next cover piece titled america alone and now joining is the editor and chief. Great to be here. Great to be here. And you heard the president , America First does not mean america alone. Well there remains to be seen how he squares his America First vision with the complicated global world we live in. I think a lot of the attendees here and the National Leaders werent buying it. It was very interesting to me that macron, merkel, trudeau, modi, were all rebutting the president before he even arrived. And as Lloyd Blankfein comments, while the president has made moves th moves that arent strictly isolationist, on climate and trade we are going it alone. He talked about Bilateral Agreements negotiating he said perhaps group agreements, but going back to Bilateral Agreements. We are there arent ambassadors in quite a few countries. The state department is dep pleated, negotiating Bilateral Agreements country by country is a long process so i think were aways from seeing where he goes with it. What about the message that america is open for business he hit that hard and do you think that so you talked about the phoforeign lear who werent buying what he is selling, but executives seemed to be. Absolutely. And look, this is there is his strong suit. Hes a deal maker. Its not an accident that he likes bilateral negotiations hes that kind of guy and rarely had a board and in selling the country he was at his strongest and i think that is absolutely right. Whether there is a lot of skepticism about trade and particularly in the wake of tariffs about the environment, about iran, there is quite a lot of enthusiasm about the Global Growth and the tax deal. Mr. Fossen thal, thank you for joining us good to be out here in the cold with us. Guys, back to you. Coming up on the power pitch, i company that wants to take the embarrassment out of treating men issues and keeping them healthy i dont know what that means and the men issues. Men issues. I dont know what the issues are. The latest common treasure is acting ymoour ney next on power lunch. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. 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The chase mobile app changed the game for us. We had this plan to go to the hottest place on earth, harness the energy from the sun to develop popcorn. We thought we had the right equipment, we quickly realized we needed more. We were able to send a Wire Transfer to a local vendor and get more Solar Cookers delivered, right here in death valley. Manage business expenses from virtually anywhere. The chase mobile app available with business checking. Chase for business. Make more of whats yours. Time now for power pitch we have 60 seconds to convince that their business is next big thing. Hi name is zechariah and im the cofounder of roman. Our Founding Team has started and scaled Successful Companies like manage by q. And bart locks. Roman is the first end to end service for mens health and we handle everything from online diagnosis to the convenient delivery of medication for erectile dysfunction a condition experienced by over 30 million men and i was one of them. For me, it was the first sign of a far more serious underlying heart condition. But for other guys, it could be diabetes, Heart Disease and high Blood Pressure and cholesterol with roman, in five minutes to 15 guys could go on line and have a visit with a doctor and send the treatment right to their door our mission is to provide the seamless and affordable way for men to receive treatment and to start them on the path of identifying the root cause and improving their over all health. Were live in 14 states and 58 of the country and in our first two months since launch, we far exceeded our 12month goals through digital acquisition, surprisingly word of mouth you just saw romans pitch. Now lets meet the panel joining us here on set, Angel Investors alicia sorette, kneel leiberman and from seattle, nat burgess. Zechariah, you are in the hot seat i thought the pitch was quite good i might like to hear more about competitive advantage but over all very strong and i will give you an a. How do you become comfortable sharing your own personal experience with e. D. So you become that authentic brand boyfriend for roman . The amount of embarrassment that i may or may not feel sort of pails in comparison to what i know other guys out there are experiencing fortunately i had a dad who was a doctor and an expert in Sexual Health and i could speak to and confide in and i wanted to provide that experience for other guys. I thought wur pitch was dynamic. I would have liked to hear more about how you make money so i gave your pitch an aminus, giving it affected men of all ages what specific target demographic were going after. For digital it is about 25 to 45yearold men. You need to make the purchase easy you need to build comfort with consumers you need to control margin and cost and you need to grow big and i thought in your pitch you had all of those points except margin and cost. So i will give you an aminus. How are you differentiating yourself and just making sure the people know your product is authentic . Our pharmacy and full illment providers only purchase from wholesale or credit manufactures. What are you doing to protect your user data from hackers. We run security and get a break down of any potential vulnerabilities and work hard to fix those as incredibly hard to fix those as quickly as possible. How do you manage reliability . We have an extensive Quality Assurance program and extensive training youre going to have serious competition coming up behind you. Drugstore. Com, amazon. How do you build barriers to entry and really protect enough market space for you to grow in . We can provide an unrivaled experience if we own and focus on the specific conditions, e. D. , cholesterol. The nittygritty and the subtleties in that experience are what will separate us. Now we want to know if the panel is in or out i think their branding is spot on. They have a really great team and fantastic backers, so im going to go in i like the founder. I like the brand positioning, and i like to direct to consumer model. Im in most of the regulators and politicians that could potentially create problems for you are going to be your customers. If you could even get 1 of this market, youll have a big cash flow of business, and im in wow, thats three ins zero outs. Whats your reaction i really appreciate the opportunity to come on the show. So thank you very much thank you to you. And thanks so much to our panelists. Thats todays power pitch okay, you heard what the panel had to say now its time tofind out if youre in or out on roman. Follow the conversation on twitter using the powerpitch, and for more, head to powerlunch. Cnbc. Com. To the bond market we go. Rick santelli tracking the action i believe this, im not just saying this because i love you, which is i think the bond market, i knee all the trump stuff, i think the bond market may be the market story of the year so far, that maybe even we are not paying enough attention to i dont disagree with that. I also think that its been actually well behaved. It is the big story, but the big story isnt that its super aggressive the big story is its doing what many people thought, many traders thought, many analysts thought it should have done over many of the last several years rates are going up right now, twoyear notes, the highest yield going back to september. Look at the twoday tens indeed, were down a basis point on the week, as we sit at 2. 65, a twoweek chart shows you we have defined where we need to break down to get more upside, which is the story youre referencing. With respect to overseas, boon yields, highest going back to sment of 2015, and a tenyear chart of the euro versus the dollar, its hard to think it doesnt have room to the upside. Well have a couple breaks after the break, youll learn much more about wynn resorts and its ceo. Stay tuned 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. Weve got a developing story were watching very closely right now. That is that shared of wynn resorts are down almost 9 on reports of Sexual Misconduct by the ceo and company founder, steve wynn wall street journal says dozens of people have come forward. We will have more on this story very shortly President Trump leaving davos, switzerland today, heading home with the hopes of reaching a deal on immigration d. R. E. A. M. Ers, and the wall. Whats at stake coming up. And if youre sitting in traffic, youll probably do anything to get around it, including using things like waze and google to cut through local streets. But one town right around here in new jersey is saying if you do not live here, youre not driving through our streets. Were going to talk to the mayor who is looking for a way around waze and whether this is gngoi to come to your town as well stick around finally. Youre still here . Come on, denise. Were voya we stay with you to and through retirement. With solutions to help provide income throughout. I get that voya is with me through retirement, im just surprised it means in my kitchen. Oh. [whispering] so that means no breakfast . I said there might be breakfast. I was really looking forward to breakfast. I know. Voya. Helping you to and through retirement. Its abor it isnt. Ence in 30,000 precision parts. Its inspected by mercedesbenz factorytrained technicians. Or it isnt. Its backed by an unlimited mileage warranty, or it isnt. For those who never settle, its either mercedesbenz certified preowned, or it isnt. The mercedesbenz certified preowned sales event. Now through february 28th. Only at your authorized mercedesbenz dealer. Each day our planet awakens but with opportunity comes risk. And to manage this risk, the world turns to cme group. We help farmers lock in future prices, banks manage Interest Rate changes and airlines hedge fuel costs. All so they can manage their risks and move forward. Its simply a matter of following the signs. They all lead here. Cme group how the world advances. Yes or no . Gin. Do you want the same tools and seamless experience 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. Heres whats on the menu. A breaking story in the last hour multiple allegations of Sexual Misconduct against steve wynn. The latest details and what happens next could raising the gas tax be the wr many are searching for when it comes to paying for new roads and bridges . One group says yes and theyre pushing for a 20 rise and taking it to the streets, how one town is fighting Navigation Services like waze to try to clear its congested streets. Buckle up. Power lunch starts right now i love our producers, but they know this is one of the five songs i hate the most thank you, happy friday. Im Brian Sullivan another record day im going to get you another record day for your money. Session highs. The dow and s p, alltime highs. At this rate, were going to hit dow 27,000 next week if this pace continues truly incredible intel, pfizer, and 3m are your dow leaders. Intel rallying following strong results and a bunch of upgrades and target increases caterpillar and Procter Gamble are your laggards. Some of your earnings movers, honeywell. Colgate in the red, revenue fell short. And starbucks, deep in the red after saying sales growth would be at the low end of prior estimates. That stock is down over 5 right now, im sure theres a starbucks in davos michelle, probably two i havent seen one, actually, but i have been able to get very good coffee here thank yous so much hello. President trump making his pitch for america, investing in america. Lots to talk about ahead, including also emerging blockchain technology. Could it pose a risk to National Security one of the topics here at davos this year. Melissa, back to you thanks. We look forward to that. We begin with breaking news shares of wynn resorts sinking on reports of a decadeslong pattern of Sexual Misconduct by its ceo and founder, steve wynn. The stock there down by 9 steve wynn responding to the allegations saying the idea that i ever assaulted any woman is preposterous we find ourselves in a world where people can make allegations regardless of the truth. And a person is left with the choice of weathering insulting publicity or engaging in multiyear lawsuits. Letsjeff sawnen felt. What are the next steps for a company like wynn . For investors, for the board, the questions are really strong. Five of them come to mind in particular first, why is the board never heard about this before . You have to wonder, there are no indications of misconduct before such an oversized personality. Second, what else did they possibly hear . And third is, of course, why do we hear about this now there was a bloomberg story out on the edges of this last year why does this come out right now . And whats going on on this board . This is a board mainly of septuagenarians. Theres one guy on the board who is not in the late 60s or 70s whose name is, of all things, edward virtue. Virtue is his name its a little ironic im glad you brought up the notion of board culpability, because elaine wynn had been on the board. In the report, they said elaine wynn knew about some of these allegations for a couple years we actually learned that through a statement from her attorney. What sort of liability does that open both elaine wynn to as well as the board of wynn well, this is why i think steve wynn himself has a point in asking the question, what her role is . First, she apparently knew about this affair and apparently she knew about these allegations and in fact, bloombergs reporting on this at the end of december, it was how critical this was in her lawsuit, where she was trying to get clearance to sell stock that she was restricted from selling because of these payments made without the full knowledge of the board. And yet, somehow, she knew about that thats a concern and the concern is why this comes out right now. As the wall street journal has told cnbc, oh, we didnt talk to, and i believe them, we didnt talk to her or her attorneys. Who else did she talk to that set people up . This is not to exonerate wynn, but you wonder why this is triggered now. You have to be suspicious this is motivated the company is on a high, the stock price has doubled in the last year. He had a report out just weeks ago. Listen, jeff. Its brian here. Number one, do you believe that with these allegations, okay, that steve wynn does not survive this scandal he will be forced to step down from the company that he built you know, i dont want to crash this stock, but its hard to believe that if these allegations check out, and there are dozens of them theres a lot not one or two its many. Dozens that we know of right now that we know of right now thats a very good point, melissa. Is that these things tend to have a watershed moment. Theres quite a contagious effect of others coming out and reporting. We might hear about quite a bit more we look at the Harvey Weinstein effect, how that cascaded once it broke but like with Harvey Weinstein, this was an open secret. Everybody around knew. Its rare there isnt some misconduct that appears in other ways where an alert Audit Committee or the governance committee, the one woman on the board serves on the governance committee. Why didnt she ask questions thats the point i was trying to make with that first question, was to follow up with this, to your point, this is called our taeng up here on our set to the board you go on capital iq, im looking at the board its only basically a ninemember board. You have steve, that makes ten ten with steve. Nine others only one female. Many, to your point, have kind of been around a long time lets just put it that way not only been around, but as you look at that data on capital iq, whatever youre looking at, is what really comes through loud and clear is these people, while theyre pretty old, theyre pretty experienced in dealing with difficult successions. Not that they did well ever. If mr. Wynn is forced out or quits or whatever, do you believe, looking at the board the company has a bench . No. I think this board was asleep at the switch i think its frankly a terrible board. There are people who al schumaker made a mess of first boston it became Credit Suisse first boston because of him. The whole tearout of the m a business, its because of al shoe maker he is well into his 80s. Whats he doing on the board ray aronny, the understudy to arm and hammer, who we thought was going to outlive us all, but it had a tour of duty as long as Rupert Murdoch its a badly handled succession. Why are these octogenarians on this bold board, and how come investors dont know whats going on the bench strength is of major concern. This is a very talented guy. An eponymous company with his signature as the logo for the company, this is like with Martha Stewart its very distressing. Only with Martha Stewart, im one of the few who doesnt think she did anything wrong she tried to but didnt succeed at it, but she got hammered for a small infraction this is very disturbing. Thank you very much, jeff u. S. Economy grew 2 2. 6 in the Fourth Quarter of 2017. That is less than the estimate of just under 3 a little bit of a slowdown from the preceding two quarters despite the miss, there were a number of positive growth signals within the report, and Steve Liesman is here to break it apart this number had the details were stronger than the headline. Good news for the comoous economy in the month ahead trade and inventories took nearly two full points from gdp, not going to keep going on, and there were other parts that were up, important parts. 2. 6 is the number the consumer, 3. 8 , best numbers we have seen since Second Quarter of 2016. Business investment doing well housing in double digits even government, state and local spending along with the federal government doing better. Theyre up 3 . Bmo says the u. S. Economy had a solid end to 2017, and early indications point to a firm handoff to 2018 the president , though, he didnt get his Third Straight quarter of 3 growth, but his treasury secretary telling cnbc in davos that it may be too soon to look for it the effects of tax cuts and the higher deficit spending from the bill have yet to hit the economy, he said and so its probably coming and theyre not really worried about one single quarter being under 3 what matters is that for three quarters now, we have been meaningfully above what most economists including the cbo and fed, think is the trend growth of 1. 8 . That could mean further gains in jobs and declines of Unemployment Rate. But something it might mean, a little more activity from the Federal Reserve than people are now expecting. So more than three hikes . I think the three is the oddson bet. Theres now to the extent theres a bet on the tail, its on the fourth hike, 15 , maybe a 20 probability out there now. We discussed before the impact of the tax cuts, particularly when it comes to capital expenditures, we probably wont see that until the end of this year, if not 2019 so it seems like it raises the risk potentially of more hikes later on i think thats right. And whether or not that terminal rate thats been discussed in that 2. 7 range is the right one to think about but i also think you have some deficit spending up front. Remember, they front loaded this in 2018 and 2019, melissa. The other thing we saw is that we have seen is that consumers are spending more of their income now this higher stock market is creating something of a wealth effect we have seen the savings rate go down a bit of impetus to the economy from that. Steve, thank you very much. It has been a big week for the president , to say the least. The shutdown deal, trip to davos, outlines of an immigration plan next week, his first state of the union. Here to look back and ahead is nbc news political analyst hugh hewitt, host of the hugh hewitt show on msnbc. I would say, hugh, often i think when we have talked, i have said that mr. President cannot get through a week without sort of something going wrong. This feels like one of those weeks where most things went his way. Almost everything the New York Times story on White House Counsel Don Mcgahn threatening to quit over mueller, thats a bad hit. On the other hand, the announcement just an hour ago from the Washington Post obtained details on the defense budget, 716 billion is going to be proposed by the president in defense spending not only is the Defense Sector going to be happy, but all of the hawks out there, security conservatives will be very happy with that number that might get us to the dl 335ship navy we need. I also lookted at the daca deal, and i say, i have been waiting for this for 12 years. Both the extreme left and extreme right are upset with the proposal, but Border Security conservatives and people who believe the d. R. E. A. M. Ers at least and perhaps others ought to receive naturalization and citizenship eventually are cheering and i think theres a productivity pop in there, too, as well. When one looks at 1. 8 Million People who, quote, live in the shadows, getting regularized and eventually citizenship, you have a huge pop in the most Industrious Group of people. Theyre migrants living in a new country, traditionally overachievers, traditionally builders, traditionally achievement oriented i think its been a good week for the president , the davos speech included. Its talk about the daca proposal that is out there and whether you think there will be enough democrats who are willing to swallow hard and provide some if not all of the 25 billion asked for the wall, whether there will be enough of those folks to come to the side of providing for the daca people to counteract the hard right folks who will say no way im ever going to vote for a path for citizenship or legalization for people who are here under less than legal auspices well, i do believe that there will be a few members of the Freedom Caucus and perhaps an outlier or two in the senate who will say no to this deal, but tom cotton has already tweeted and hes one of the immigration hawks in the senate, has already said this is a very generous, very good deal i think it will get through the senate i dont understand how one democrat could vote against this and then look a d. R. E. A. M. Er in the eye any time in the future i have been at so many public performances and public outings before where d. R. E. A. M. Ers have come to make their case that they have to be allowed to stay. I have always been sympathetic to them. If the democrats block their path to immediate regularization and eventual citizen shp, they will leave the democratic party. There will be no recovering that demographic if the democrats block their pack to citizenship. But the democrats have been so strong against funding a penny for the wall, hugh i know, but when they come down to it, people vote, walls dont. They had 30 billion in the 2013 immigration bill so they got over that in 2013. Now they have 1. 8 Million People, and all of their family and friends, who are calling their offices and saying youre not going to walk past this, are you . Youre not going to tell me to stay in the shadows. Youre not going to tell me im not worth Border Security. In fact, Border Security is a bipartisan issue its not just the wall its new technology at ports of entry, new technology, especially to contradict fentanyl, heroin, and otherope yods coming across the border. Its a broadly bipartisan based approach, so i think the president hit a home run with this appeal. I have often felt personally that one of the reasons we have d. R. E. A. M. Ers in this country, one of the reasons we have as many people here illegally as we do is because our Border Security was not good in the first place. Thats why theyre here. And then once theyre here, we have elected largely not to pursue those individuals and enforce the immigration laws against them unless they committed some kind of felony. Thats why we need Border Security in tandem with regularization of the d. R. E. A. M. Ers. That which gets rewarded gets repeated we do not want to encourage a new giant migration of minors towards the border on the false promise that this will be done again. Theyre going to have to have a lot i think the president said in davos, 800 miles of new wall or fencing in addition to the refurbishment of that which exists because we dont want to send the wrong message that the doors are open at the same time, 1. 8 million who are already here, wow, too much for me to believe that democrats will look them in the eye and say no, we dont want this deal. We dont want those fences, and therefore, were not going to give you citizenship interesting week coming to a close. The headline in the times today about the possible firing of mueller was really the pothole in what has otherwise been a pretty good week for the president. Next week is going to be interesting too. Hugh hewitt of the hugh hewitt show on msnbc. Lets get back out to Michelle Carusocabrera oh, no were going to go to brian im right here. On deck, President Trumps imposing tariffs on imported washing machines, and now whirlpool stock getting an upgrade. Well ask the analyst if u. S. Trade policies are driving more of the optimism. Plus, why cant anybody seem to find a truck driver to hire the head of the ata is here on that and why they would be willing to pay more for gas to get better roads and well go back to davos and why blockchain may not be the digital pan sahaasya tt a lot of people think it will be imposed tariffs helping out one stock. Whirlpool getting an upgrade the Company Stands to benefit from the tariff which targets its foreign competitors. Joining us now is sam, the analyst at Raymond James thank you for phoning in let me get this straight without the tariffs, whirlpool would not be an outperform its a big part of the call, yes, melissa the stock historically trades based off its north american margins. And one part of that this year, clearly, is going to be the benefit from the washing machine safeguard tariffs. For whirlpool, washing machines are about 15 to 20 of their u. S. Business. And its an unprofitable business to date so clearly, the tariffs, if they are effective, at least for a period of time, should be helpful for north american margins. Its not just, though, the tariffs that the call is predicated on. The company also has announced price increases throughout its category portfolio, and we think those are going to stick, too, at least near terme because of the industry wide cost pressures, at least until memorial day our call here is tactical near term, the north american margins are set up very nicely okay. Lg announced yesterday it would be raising the price of its washers in the United States i think it was by 50 or some amount is the response by competitors going to be important to this call we know lg is raising price. If samsung does not, for instance, does that make whirlpools advantage less yeah, it certainly wouldnt help if samsung did not announce price hikes, but remember, samsung, call it less than 20 of the industry, whereas pretty much the rest of the industry is going to be in lock step you would imagine. The koreans are also in the process of adding u. S. Capacity, and so their supply chains are likely to be under some friction eefrb the next couple quarters or so. Thats going to help whirlpool from a market share standpoint the real challenge is going to be quantifying the benefit i mean, the koreans are going to have some safety stock of inventory. And we dont know what elasticity of demand is since the u. S. Consumer has been long conditioned to buy appliances only when theyre heavily promoted but it should be a benefit we have about a dollars worth of eps upside in our numbers or at least embedded within our numbers thats not in guidance is there a replacement cycle, sam, that could benefit this industry if you think about when a lot of new washers or new appliances are bought during the housing boom, is there a natural need to replace those now that they have aged this many years yes and no. The problem with that math is that the typical appliance lasts between 10 to 15 years, so were starting to lap up against the housing bubble bursting. So there is a replacement cycle. Its just not nearly as exciting as perhaps it was a few years ago. Got it. Well leave it there thanks for foining in. Sam darkatsh who upgraded whirlpool. More on the story rocking one of americas best known gambling resorts and hotels wynn that stock is down more than 8 . Reports by the wall street journal of numerous instances of Sexual Misconduct by its ceo, steve wynn the story continues to develop stock down 9 now. More details coming up right tethbrk. Afr e ea yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Dynamic performance, so you can aggressive styling, so you can break away from everyone else. The bold lexus is. Experience amazing. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Notheyre not investing iney commoditiesies. Or fixed income. What people are really putting their money into is what they hope to get out of life. But helping them get there requires a real refusal to settle for average. Because when you approach investing with a tireless desire to beat the status quo, Something Wonderful can happen. Those people might just get what they wanted out of life. Or maybe even more. Shares of wynn resorts plunging about 10 on reports of Sexual Misconduct by ceo and founder steve wynn lets get more on what this could mean for the stock were joined on the phone. Guy, the stock is down 9 . Just yesterday, the stock had been at levels not seen since 2014 what do you make of this pullback hey, mel. Thanks for having me on. This is what i make of it. When steve wynn started buying back his own shares about a year and a half ago, he put his money where his mouth is you obviously saw the stock trade over 200 yesterday. This is what i would say if this would have happened five or six years ago, i think it potentially would have been devastating for the stock. Now, i think wynn is a mature enough company where theyll be able to sort of get through this i cant speak to the voracity of the claim. Theyre not particularly tasteful, but i will say this. Wynn had a huge run. Probably trades at a valuation that is a little bit expensive, so i would expect the headline risk still to the downside if you look at their growth and what theyre doing in las vegas, i think a selloff of a magnitude of another 5 is absolutely another opportunity to buy this stock. So again, unfortunate headline the risk is still there. But the business that has been put in place is such that i think theyll be able to withstand this the thing about these reports, you get 12 people or however many the journal got to speak out, and it tends to have a snowball effect. More and more seem to come out of the woodwork, so to speak, and tell their stories this thing doesnt necessarily end very quickly then theres that sort of thought that perhaps that tarnishes the brand, which is his name it is his ame, and it does it absolutely tarnishes the brand, but then you have to ask yourself the following question, is the business thats been put in place, is it Strong Enough to withstand accusations of this magnitude . I would suggest at this point of its maturity cycle, it is. I might be 100 wrong. Maybe the wynn name will be forever tarnishedand ill rue having said this, but if youre asking me to play armchair quarterback, if you see arth 5 to 8 pullback in the stock, if you look what theyre doing in macao and look at their Growth Opportunities in las vegas, i dont think thats necessarily going to stop. I may be proven wrong. I typically am but in this case, i think it will provide an opportunity to get into the name again. There are other options there. And you could see a massive pushback against steve wynn and his properties in the United States, perhaps in china as well lets also not forget that steve wynn is the chairman of the Republican National committee. The chairman of the rnc, which i know does not directly tie to his company, but it does mean that the scrutiny on mr. Wynn is only going to grow because youre already seeing headlines that dont even reference his company but mention his connection to the Republican Party right and one has to well, im not going to say whats going on im not going to even venture a guess as to why this story is coming out now again, i cant speak to the veracity mel pointed out a number of people have come forward seems to be where theres smoke theres fire lets say mr. Wynn says, you know what. I acted eed inappropriately, i going to stock down. What do you think is going to happen to the stock . My sense is you may see a kneejerk sell off, and then people realize the business put in place is Strong Enough to withstand this headline risk so again, im not saying you have to race out and buy wynn now. I think the story is such that it will be able to withstand, you know the headlines coming and the accusations to follow. Were going to leave it tonight. See you tonight at 5 00. Later, mel. And small towns have a message for waze enough with the short cuts theyre trying to keep commuters on the freeway and off their towns streets straig aadn ow lchhthe operun. Hello, everybody im sue herera heres your cnbc update at this hour Michigan State Athletic Director mark hollis announcing his retirement amid criticism over the schools handling of sexual abuse allegations against former dr. Larry nassar Michigan State president Lou Anna Simon submitted her resignation Late Wednesday let me be clear that in retirement, i will fully cooperate with these and any other investigations as the university, we must focus on the healing of the survivors and our entire community this years flu season is now more intense than any since the 2009 swine flu pandemic. And its getting orse. Thats according to federal Health Officials and the flu season still has weeks to run were almost just halfway through it robotic bartenders are shaking up biloxi, mississippi thats sjengo making his debut during the grand opening of the hard rock cuzinos new robo ba last night thats a nice shake. Customers choose their drink from a kiosk, swipe their card the robot makes the drink, and then you can scan your ticket and pick it up thats the news update this hour i dont know whether you have to tip him, but whatever. Melissa, back to you what if you want an extra twist or something i dont know. Thats a good question all right, sue, thank you lets get a check of the markets. Fresh intra day record highs for the dow and s p 500. The dow and s p are up five times in six sessions. This would be the longest both indices have gone at the beginning of the year without suffering a losing streak of any length nasdaq at session highs right now. Health care and tech are the leaders. The oil market closing for the day as well. Prices for crude firming up after hitting a new threeyear high in the previous session price of a barrel of crude oil just over 66. Oil now up almost 10 on the year as well so watch gasoline prices in the meantime, we have breaking news on Airline Maker bum bard yae lets head to phil in chicago. This is a huge win for bombardier, the u. S. Trade commission has ruled in favor of bombardier by a vote of 40. A unanimous decision that the proposed tariffs or i should say the sale of the cseries planes to u. S. Airlines and delta is the main customer, they have ruled against boeing saying it would not, would not injure boeing and therefore, theyre basically going against the proposed 292 proposed tariffs from the commerce department. Remains to be seen what is the next step, but this is a big win for bombardier many people did not think they would win this many people thought boeing would get the win and we would see the tariffs go through on the cseries commercial airplane that is not the case bombardier wins umanmousily. 40 the vote big one there thank you very much. Lets go now to michelle in davos. Michelle hey, there, tyler you know, if President Trump hadnt been in davos this week, you know what would have been the number one topic, cryptocurrencies and blockchain. They would have been front and center with everyone from steven mnuchin, christine lagarde, Lloyd Blankfein, all of them sharing concerns about the lack of transparency and how to regulate it all. Lets bring in jamie smith she cochaired the World Economic forums first ever counsel on blockchain. Also president of the Global Blockchain business council. Welcome to power lunch are these individuals right to be concerned about the anonymity of blockchain or the supposed anonymity of blockchain. Theyre right to have a lot of questions, and what concerns me is there are so many regulators in the United States, but all over the world, who are just waking up to what this is its really critical that they learn and take the time. I have to hand it, this is not the first time they have talked about this, but most people are kind of just openening their eyes to whats happening here. Is regulation needed, and if so, what kind . Or do we even know yet yeah, were big believers in smart regulation, but we always say, you cant have smart regulation until youre smart. Our job is to actually go in and talk to regulators and explain to them, start at point a and work them through what they need to know, how they can understand the difference between blockchain and bitcoin, blockchain and other cryptocurrencies, the applications of blockchain technology, and also frankly why everyone is so excited about this technology. Can you articulate any kind of regulations that you would recommend right now . Sure. Absolutely i think the s. E. C. Has already come out and basically said that if youre going to do whats called an ico, you need to actually have a product. That would be helpful. And i would say it would be very helpful to have guidance on all of these different cryptocurrencies everybody has heard about bitcoin, but theres a lot of different currencies out there, and right now, were relying on the companies being responsible. Theres a Great Company in san francisco, coinbase, and they only let you buy four different coins. But those are their decisions. And theyre basising it on some sort of criteria, but eventually, theyre going to need to be some guidance about whether something is pseudonommous or fully anonymous. What does that mean i dont know exactly your name attached to the ip address, but i can help Law Enforcement could figure it out if they needed to. Anonymous is anonymous that should be something we should all have a difference in understanding what am i buying and how do i know the difference bitcoin is pseudononmous or anonymous. Pseudoanonymous in theory, they can track down individuals i know a lot of people dont know this, but theres a Blockchain Alliance where industry has started working with Law Enforcement it started with doj and homeland security, and now you have interpol, europoll, canada, theyre logging in to a monthly conference call, headed up by jason weinstein, and theres a lot of cool work going on educating Law Enforcement on this with the internet, a bunch of Law Enforcement came way later and said oh, my gosh, people are doing bad things with the internet industrys idea was lets go to them early and show them how to use this the problem is theyre starting to be people in Law Enforcement who know about it or have the funding to spend time on it. Were spending time on it it was great having you on jamie smith is with the you have so many titles. The Global Blockchain melissa, back to you. If you out there are sitting in traffic, youll do anything to get around it, including using apps like waze to cut through local streets. One down in new jersey says if you dont live here, stay off our streets. Well talk to that mayor of that town on how she finding his ways around. Y fund has exposure to Energy Infrastructure mlps . Think again. Its time to shake up your lineup. The alerian mlp etf can diversify your equity portfolio and add potential income. Bring amlp into the game. Before investing, consider the Funds Investment objectives, risks, charges, and expenses. Read the prospectus carefully at alpsfunds. Com amlp President Trump expected to unveil a 1. 7 billion infrastructure plan during tuesdays state of the union speech, and the American Trucking association has a way to pay for it. They propose their build america fund, with an increase to the federal fuel tax lets bring in the president and ceo of the American Trucking association. Good to have you with us thank you for having me on. Are you based in my hometown of arlington did i hear that right . We are, indeed. Good. Go yorktown high school. Lets talk about your proposal here 1. 7 trillion is expected. The american gasoline tax, federally, has not been raised since when 1993. And what would you propose it be raised, by how much over how long now to help pay for what i think we all agree are deteriorating roads, bridges, and tunnels . Well, this has been the method its been paid for for over 60 years. And trucking has paid for half the tab into the trust fund. But since 1993, it hasnt been raised and were seeing a disparity in what our roads and bridges need and what funding is available. So our industry is willing to pay more were willing to pay 20 cents more on the gallon, 5 cents a year over four years will raise 340 billion over ten years. Thats real money. Its a very conservative proposal because it costs less than one cent on the dollar to administer this. We feel this is real money its going to appeal, we hope, to the president and congress as they take up an infrastructure bill in 2018 this would be charged at the wholesale moment, but it would presumably be then passed on to the retail customer who goes in and fills his or her tank at the pump your membership is all for this. They support it . Absolutely. So is the chamber of commerce, most of the Business Community thats involved in this initiative we havent e even organized lab. This is one of them, and we feel this is the way to raise money its real money, a conservative proposal, and its going to get our roads and bridges back into ship shape and my sources, chris, in d. C. Are telling me that the bold act, which didnt really go anywhere last year, which raises revenues 33 oil and gas and other things, not just a gas tax, is likely going to be resurrected in some form theres bipartisan support, again, according to the folks im talking to in d. C. Im sure you know what im talking about. How likely, can you put odds, 80 , 20 , whatever, on the fact that we will get a meaningful infrastructure plan involving roads and bridges done this year what are the odds . Well, it really depends on whether both parties come to the center and want to do whats right for america. I mean, this isnt about parties. Republicans and democrats drive on roads they dont discriminate based on party affiliation. So were going to need to take this approach based on whats good for america what were proposing is real money. Its not p3s for roads and bridges. Not tolling. Thats fake funding. Its 35 cents on a dollar to administer that. Thats not conservative. Were putting less than 1 cent on a dollar for 20 cents baked into the price of fuel at the rack its the most conservative approach to raise 340 billion over ten years thats real money. Folks out there in the real world will notice that difference when the roads and bridges are improved almost immediately. So i can anticipate there might be two places where you would get pushback one would be from the right where people are averse to raising taxes basically of any sort and the other might be among constituents who say that low income people who commute long dist ances to go to work are going to pay disproportionately because the tax is not a progressive one. Its regressive. It affects everyone the same your answers its not conservatives who spend 35 cents on a dollar for p3s and roads and bridges tolling is not the solution. You cant toll your way out of this, and 99 of the roads and bridges out there require a lot of through put they dont have it, so those arent profitable. The average cost per motorist right now per year for the cost of doing nothing is 1500 a year 1,000 spend wasting gas sitting in traffic and another 500 spend on vehicles repairing them from potholes and damage caused by the roads and bridges thats offset by what were proposing. Were giving good roads and bridges everywhere in america. Right now, in arlington, at i66, sevenmile stretch is now being tolled add peak hours 46. One way, one day one road were talking 2 a week for that same motorist for all roads and bridges. This is a nobrainer you know, come on up. Well extend this discussion one day on the expressway. Chris speer of the American Trucking association staying with driving, you know the story, right . Traffic is terrible. All of a sudden your Navigation App tells you to get off the highway and drive through a residential street as a short cut. You then notice hundreds of other people are doing the same and towns people are ticked off. One new jersey town is tired of being used as a shortcut a nearby town next to us is blocking apps from directing drivers through their town and issuing a fine to residents who use restricted roads, theyre calling them estricted roads, during rush hours. Other towns. By the way, doing the same is this coming to your town . Joining us now, the mayor of the town, mayor ziegler, thank you for joining us i may or may not be one of the people who have used your fine town as a short cut. Waze does it, its not my fault. Im just a victim of the machine, as it were. How does this work in principle . How do you stop google maps or mapquest or waze, whatever, from telling people get off here, drive down that residential street these navigational apps are simply trolling all street databases and delivering recommendations based on their satellite imagery of traffic tieups. What we have done through restricting access to these streets is now work with waze, work with these other app manufacturers to remove these streets from their recommendation engines they show up as a private road as restricted access, not a private road our streets are not restricted 24 7 just during peak times during those times, the wont show up on the app as a possible short cut. They wont issue the recommendation, instead of going this way, turn and go this way, then turn right, turn left, et cetera and on your end, how is that enforced if you have somebody standing in front of the roads no. Since we passed this legislation at the end of december, we have had all of our residents apply for and receive yellow hang tags for each of their vehicles and anyone who has business in the area, theyre an employee of a business, also has a hang tag. The only way an officer might pull you over is if youre not displaying a yellow hang tag we have an 18officer Police Department our primary mission is and has always been public safety, so the goal here is not to pull people over. And issue a bunch of tickets the goal is to get the recommendations out of the app engines so we reduce traffic so two quick questions. Lets say i have a dr. s appointment or im visiting a business there, what do i do number two, do you expect Court Challenges here and do you think youre on Firm Legal Footing to the first question, if you have business in leone yeah, go to a restaurant, a doctor, whatever, and in the frankly somewhat unlikely event that youre pulled over once this initial education period passes, you simply tell the officer where youre going and the officer will send you on your way. Again, our goal is not to ruin a bunch of peoples day with 200 tickets. We have seen rich towns do this, los gatos, california, sherman oaks, california leonia, great town know for the home of alan alda and Anthony Bourdain a working town good people. How did waze react because people in los gatos, out in silicon valley, they probably work there, they knowvalley, thy work,there they have some influence, which is owned by google, by the way, react to your request when we initially passed legislation in september they came out applauding us and pledged to work with us, which theyve done we reached out to them they removed the streets from the peak drive time in the app and you see it as a list of minus signs. Did you just cause a problem for the mayor of the neighboring town actually, no. I actually helped the mayors of neighboring towns. On tuesday there was a 90minute backup to the bridge our side streets were clear. And fewer people went up our main thoroughfares, which remained opened so the neighboring communities are now not getting this traffic were actually helping the other communities as well. Our chief reached out to the chief of the neighboring community and he validated that for us. Mayor, a pleasure to have you on i think you might be a litmus test for a lot of other places in america that are sick of that traffic going through residential neighborhoods. Well, last resort but thank you very much for having us on. Sure thing. Were still following shares of wynn, theyre down on reports that their founder steve wynn scdu f a pattern of sexual mionctor years well get a look at the stock when we come back. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Shares of wynn reports down 10 . Reports from wall street journal of numerous instances of Sexual Misconduct by steve wynn theres a lot of sides to the story, i get it. Theres obviously the human side to the story many of these women coming forward in a town literally some would say is run by steven wynn. Lets focus on the equity side thats what we do here at cnbc do you see any impact on the core business of wynn coming from this pretty blockbuster reporting by the wall street journal first of all, thanks for having me, brian i think at the minimum this creates aer interm overhang potentially, mediumterm overhang this is the last thing im sure the company would have wanted at this particular time, with the stock putting up third year of consecutive market outperformance and coming off last weeks better than expected q4 results not sure the momentum in macaw continues unabated and we still have a buy recommendation on the stock. Not to minimize the seriousness of this allegation, but this is something, im sure, that will probably linger for at least some time. Around 180 a share, which is where the stock is trading now, and who knows where the stock goes monday, whether it be much lower because other people come out or whatnot, does it trade still at an historical premium to itself and or its peers the question would be, is enough discounted into the stock for that uncertainty, even with the good fundamentals . Well, if you look at all the casinos that are exposed to macaw, many of them are trading close to 14, 15 times ebt multiples. Which i think is consistent with maybe the fiveyear historic average. In the case of wynn i think its the most exposed to macaw, about 70 of its consolidated cash flow coming from that market so, i think, you know, i think its relatively better position for this upside. So, to your question, you know, the premium has seemed increasingly justified by the rebound in macaw and i think the question is going to be how you know, how much the news on this Sexual Harassment could detract from investors focusing on the fundamentals all right tuna, thanks well leave it there tuna who sticks by his rating on wynn. Thank you. Check please baby crying slow jazz music fly me to the moon and let me play bell ring you or joints. Something for your heart. But do you take something for your brain. With an ingredient originally found in jellyfish, prevagen is the number one selling brainhealth supplement in drug stores nationwide. Prevagen. The name to remember. Shares of wynn are bumping along session lows, down by 10. 5 . Very heavy volume. We should note, 720 of its average daily volume have changed hands with still an hour to go left in trade. This is a story im sure well be hearing a lot more about on monday and the days to come. There are few companies as associated with their ceo and founder as this one. Absolutely. Maybe elon musk and tesla. The journal said they were contacted more than 150 current or former employees, so a deep dive there by the wall street journal. Well have much more on how to trade this stock at 5 00 on fast. Thanks for watching power. Closing bell starts right now. Hi, everybody. Welcome to the closing bell on this friday. Im kelly evans at the new york stock exchange. Im Bill Griffeth another remarkable day to close out a remarkable week. The dow up another 124 points right now. Weve gone 26,500. The s p, the nasdaq, thats the best performer so far, up 0. 8 and the russell up a fraction as well right ow. Pick your record here as we look at them in the final hour those stories of the day all come from the individual movers. Look at intel surging almost 10 after it