Transcripts For CNBC Power Lunch 20180129

Move welcome, everybody the major average is down right now. The dow falling for the first time in four sessions, wall street socalled fear index, otherwise known as the vix, at the highest level in two months. Apple with a major drag, with fears of plunging iphone x demand the cap has dropped 45 million in a week. The action is really in the bond bond market where yields are soaring. Michelle, welcome back thank you. Michelle carusocabrera. Bob pisani is on the floor of the new york stock exchange. Bob, is it Rising Interest Rates starting to hurt stocks . Yes, for the moment and fears of Interest Rate hikes. Puff reits, on either side of and telecom and Home Building stocks, theyre all getting knocked rather noticeably there. Also interestinvestigate sensitive. Like thanks, figure, not doing too much already, but your regionals not really doing that much so the big debate is will higher rates finally be the catalyst for a pullback we have a bunch of market movers, we have the state of the Union Address, the earnings big week for earnings, fridays job reports, but everybody is talking about the fed meeting as the potential mover, because theres concerns about a slightly more hawkish fed. The great news is the numbers for the earnings have been titanic. Many companies are beating expectations by wide margins 80 er beating earnings way above 20 Percentage Points above the normal even the revenues beat on revenues, 82 , the amounts that theyre actually beating are much greater thats why the market keeps holding up thats why people are reluctan to dump a hot hand why would you do it when the numbers keep going up. Well talk more about that a bit later on guys, back to you. Robert, thanks very much. A look at a chart over the past week mike ryan joins us. And she comanages two growth funds, both of which outperform the broader markets. Welcome to both of you michael, let me get your thoughts first your view of rising rates is, and how it may effect equity prices. First of all, i do think we are sorting through what the impact of higher rates will be i do think that underlying the market will still be the emphasis, as bob just went through, well see the strong growth, and you know, were about a third of the way through earnings season. But more important than that, were also in 2018 is going higher as well were getting about an 8 or 9 bond move. So i think there will be transitory volatility, but i dont see this as undermining or upsetting the current bullish trend. By the way, i dont think well get a signal that they will become overly hawkish. I dont expect a whole lot of change remember, there is no change, and and so therefore, you do not expect a rate hike this week where growth outperforms value. I would echo what mike is saying, fundamentals continue to showcase that economic profits are very strong, and we have really a unique situation where you have the cyclical tailwinds and secular tail winds combining to maid growth the epicenter Global Recovery is alive and well you can see Consumer Confidence and corporate confidence in the investments 3 4 making in employees, software and so forth. That is bringing to the profitability picture. You see that with leadership year to date, which is very similar to 2017. In theory the market can go up, but if you see a much higher rate on the tenyear, why wouldnt i go for the ten year and the unity lying earnings quality. The multiple right now, while it appears more experiencive, its still relatively cheap given the profitability. And this is only with a quarter of the s p so you might see that continue to rise. Again, you need organic growth, which is the secular growth stories that we are focused on. Thoughs mike, many feel that the bond bull market has begun if bond prices go down, could that kick us up with another leg of a storm rally it certainly could. One of the things we are seeing is part of the rally were seeing much, much better earnings, but part of it has also been a reallocation so that could certainly move markets higher were no a back upin rates is causing pressure, as bob pointed out, its rates were not seeing a back upin Interest Rates that will undermine the dynamic. So earnings beats rates this time around. It beats them all. Thank you both. Its a big merger month. Were going to start with what would be the biggest tech dealing ever vmware considering buying dell dell already owns 0 , alex broke the story just now so dell really controls the show here it could sort of roll itself up into what could be an all stop or cash stock deal its one of the several options being discussed. They will probably be convene but from what i here if youre going to go through an ipo process, you can only raise so much money if you consult it all within the current existing Vmware Companies it with monetize the investment by, a, getting cash as part of the deal, but also its a wall as the rolled yourself in and consolidate with oat letter and get all. Hi took it private, because he hated being public. He said, screw it, lets go private, no one needsing to our books. I wonder how michael dell would feel about this. Would he even have a saying . Your point is good, which is its somewhat of a reversal for him, and this is what is his role thinkthose questions, legitimate. If he hated being in a Public Market sorb. One the deal is done, does he exit that mike the out plan. Thank you very much by scoop, thanks. Apples market value down about 45 million in just about one week lets go to josh lipton in san francisco. Josh tyler, apple is saying it will slash production to 20 million units. That is according to the nikkei which did not cite sources in that report. This follows a similar downbeat note from jpmorgan analysts said they are and just today bernsteins tony sakanagi lowering the total estimate to 53 million versus a consensus estimate of 62 million. Importantly he expect apple to maintain strong pricing power, raised the average selling price to 767. Reviews of homepod are officially in, some applauding the Smart Speaker for what they call the rich and full sound, others suggesting it was too expensive at 349. This is apples first move into the Smart Speaker market where it looks to take on a many zone and google. Its the next war for all those companies. Thank you, josh. Coming up on power lunch, a couple big interviews, first senator booker tells us why she thinking amazon should pick newark, new jersey for the new headquarters, and David Beckhams plan to bring an mls team to miami. Plus the wynn scandal continuing to sink its stock more on power lunch. I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Wynn a loser again today although leg lower, down 17 in two days since reports of alleged Sexual Misconduct Contessa Brewer joins us with more. Look, tyler, theres a lot of investor about what is in store for this company with massive developments under way, and the gaming regulators in these places are taking a closer look at the accusations aimed at steve wynn hes the first ceo of a majo publicly Health Company whos become the center of this controversy, and a primary powerbroker in this tightly regulated industry wynn has pushed back against the allegations. He calls them preposterous, and accuses hi exwife of orchestrating the schedule a she sat on the board until she was pushed out wynn said its noteworthy though she knew about the 2005 allegations involving mr. Wynn in 2009, she never made them known to the board of directors of which she was then a member she did not raise them until after mr. Wynn remarried and the shareholders voted not to elect her to the board multiple law firms are investigating potential claims for breach of fiduciary duty involving the directors and officers the only woman on the board will lead the companys investigation, but wynn resorts wont say who else will participate. Its not making anyone from the Company Available for interviews bestcase scenario is that steve wynn is exonerated and the value bounces back, but analysts say that is highly unlikely. How much a long drawnout scandal here could affect this icon really preeminent glamour brand in the gaming world, and one hes so connected with with his name thanks, contessa. Sure lots of questions as she outlined there how much more risk is there. Hey, dan. Hi, how are you good. Contessa highlights a good point. If youre the ceo of a Consumer Products company or Computer Company and you get accuse of the make you can be fired but dont have to work about a regular torrie agency taking your license from the very business that you run and ruining the Business Model what is the risk here and what would happen if indeed that were the case the way were looking at it are three factors that can influence the price. One is the gaming licenses which the regulatory boards have the right and are investigatoring the suitability of steve wynn, you know, it is our view that corporate boards would love to exonerate any individual that has potential to negatively impact shareholder value, so we actually think theres a low risk that any of the current existing bones licenses that wynn resorts has gets removed, but other things would be the design quality, and the future of that for win resorts. Thats an important differentiator for the company and has been we do think theres lilted risk there, too, but the third thing is the Brand Reputation and what happens with any potential fallback we dont know the outcome. Dan, this is not one woman. This is many, many, many people. Is there any way that steve wynn survives this . 23 no, sir, what is the Succession Plan for wynn reshorts yeah, these are serious allegations. Its not proper for me to comment on exactly what happens, but to your point theres been a lot of people bringing up the allegations. If steve wynn were to be removed, it is our view in that situation, the licenses would most likely be kept, but there is a risk to the brand that has his name attached to it, that there is some lower demand, just as a case use in our note we published last night, we had one example if we discounted our wynn revenue for this year next year by 5 , that would reduce our current fair value if mr. Wynn is booted or voluntarily leaves, the risk to the gaming licenses basically disappears well, i think they may tain the licenses if theres just if the one individual that is being reviewed here for suitability is steve wynn. If that individual is found not to be suitable, and is removed, you know, i would believe that the gaming licenses would be intact farce the Succession Plan, there is a the president at wynn has been there since 2002, and the head of the macau president has been there, and they can maintain the quality of that before, so there is a bench but there is uncertainty there the company hasnt discussed that, though somebody watching may own this stock thats down more than 15 since the allegations broke. What do they do with it . Yeah, again our fair value is 166. Given the uncertainly and potential of what this could do to the reputation of the brand, we would wait for a bit more of a margin of safety if you dont own it, somewhere around in the 140s would be an area where some of this risk starts to get factored in. If you do own it, i would maybe look at mgm resorts. Thats trading close to our 3850 value, gut does have a new could sin on opening in the kotai region, and also so sell wynn and buy Something Else you would get out . Well, again, given the headline risk theres not enough of a margin of safety, so yeah, i would say it would be more toward a sell. Got it. Thanks, dan. Sure, thank you. Overall its a rare down day for the stock market right now no new report highs, but we are off session lows. You never know in this market. Look at bonds, this might be the market story so far. Soaring to 2. 7 everybody thats quick and that is fast more on these yields and what they mean for your money when power lunch rolls on echnologi, 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. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Today, smart planning is helping the new new york rise higher than ever. As the world leader in unmanned aerial systems, were attracting the worlds best talent to Central New York. And turning the airport into a firstclass transportation hub. All while growing urban areas into vibrant places to live and work. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Tracking the action at the cmi. Ricks terr good afternoon. If you look at intraday of tens, a spritz squashed chart, but most of it is around the 270, 271 area the reason thats important is because were up 29 basis points for the year check it out year to date tenyear note deals. Hovering around 241 when the year closed owl for 2017 if we look at bund yields, trading close to 70 basis points, so theyre up 26 basis ponce, as they sit at 69 they settle at 43 basis points for 2017 if you look at a twoday chart, whats fascinating here is, yes, were getting a positive trade one would expect that, but here we sit just blow 89 and a half. Whats really fascinating is cover this ground, its been pretty orderly, many traders thing now you look at that 263 as support, everything is contemplating a test of 3 tyler, back to you. Rick, thank you very much coming up, more on the big bench deal bubbling up today. And next, senator booker tells us why azoman should pick newark for i next headquarters power lunch will be right 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. Hello, everyone, im sue here herera Andrew Mccabe has stepped down as Deputy Director of the fbi, according to nbc news. He has been until pressure from President Trump to resign. Mccabe will remain on terminal leave um he is eligible to retire, with full benefits, in midmarch. Azar has been sworn in, he succeeds tom price, who resigned last fall following an outcry of his use of costly private aircraft for official travel we have to get the prices of prescription drugs way down and unravel the tangled web the special interests that are driving prices up for medicine and for really hurt iing parts. Chief wahoo is being removing off the indians ease jersey sleeves and caps. The caricature has used since 1947 that is the news update this hour i will send it back to you. Sue, thank you very much. Apparently stocks can go down the dow is up, it had been down 160 earlier. Caterpillar one of the drag, apple one of the only two dow stocks negative on the year. Utilities and real estate are lagging. All right. Privately held Keurig Green Mountain will likely buy snapple. David faber has more on whats driving this to some accounts, a head scratcher of a deal some people are curies about it special dividend, if youre a dr. Pepper holder, and then those holders also alone 13 , bringing together Keurig Green Mountain and dr. Pepper snapple into a Bench Company with a lot of different means of distribution 14 of what will still be a public entity, though barely public, about 13 will float in the public recall, continuing to be held by shareholders of dr. Pepper now thats many more brands were talking about there. Those are the key brands that are being discussed. Well show those to you in a bit. We did have the ceo who will run the combined company to combine its not intuitive first, buzz when we put these two bench companies together that they can get those brands to customers anywhere they shop. Of course, dr. Pepper is distributed by trucks, as people know you you see them all the time. He says that keurig will benefit from that. He went on to tell me, jim and carl, this is all coming from the consumer perspective and coffee continuing to grow unlike carbonated drinks. They had had what seems to be a fairly good run at the short time they having completed the transaction when they took it private we will see what kind of value this he can generate from here as you can see, is snapple shareholders are quite happy, as one would imagine with the stop up 25 it would trade above the 103. 75 youre getting in cash, that will be what is left of it investors are trying to figure out, well, what kind of a multiple do i put on that stock . They said if you assumed with the synergies of 600 million fully baked in, we would have earned 1. 27 a share so investors are looking at that number and saying whats an appropriate multiple youre guys, well send it back to you. David, why the head scratch, when the ceo says its about distribution why is there still doubt on was . I think bringing together these particular beverages, particularly the keurig system, its not completely clear where the synergies are, though it may simply be in things, as you might expect, in overlapping logistics. But its just not completely clear to people as a consumer proposition why it makes sense to have these two together its not necessarily sbuz tiff, but they do believe, all right, its 2 00, youre looking for an energy boost, you 3450igsd go for a sod ade or cup of. Coffee so its a caffeine company, basically . Which i think now will be bigger than pepsi. In part on decrease, David Beckham, he is putting up his own money s amth jn n mlte, eyoi us after the break hi, im bob harper, and i recently had a heart attack. It changed my life. But im a survivor. After my heart attack, my doctor prescribed brilinta. Its for people who have been hospitalized for a heart attack. Brilinta is taken with a lowdose aspirin. No more than 100 milligrams as it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a clinical study, brilinta worked better than plavix. Brilinta reduced the chance of having another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor, since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding new or unexpected shortness of breath any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor if brilinta is right for you. My heart is worth brilinta. If you cant afford your medication, astrazeneca may be able to help. Time now to street talk. The recommendation on the stocks you need to know about alibaba, being readed from 240 to 210 the first cites a robust and the new retale, national expansion, and the firm believes that its operating from a position of strength new target implies 18 up side the firm keeps its buy rating. Bar clay is getting as they upgrade to overweight they also think the aesthetics business overall is they have confidence that it was validated by a recent survey of a bunch of plastic surgeons and dermatologists, saying botox was strong, in the to 39 mark. What . Thats too early. Bar calculation lice it aer gan has a slight premium valuation, but many mature assets are slowing in their declines they booth the target from 230 to 220 i mean, cmon. To 1450 analysts say they feed more update on the Earnings Report tomorrow it points to recent data points after the cryptocurrency sit mining markets they talk about so much. New price target implies a 10 up side from here. You have to go down to the crypto mines. Way do you with a pick ax and amd chip. Oshkosh, the truck and crane maker, just a smallcap call today, raising the target after last weeks, going up to 115. The biggest backlog in its business ever, thats like the cherry pickers, to go up and fix something. Never been a bigger backlooking also seeing pricing improvements for aerial work platforms, i know michelle every day you comes in and say when is the replacement cycle going to kick in heres your answer now fantastic a target price upgrade. Soccer superstar David Beckham, the new owner of an mls team in miami. He will join ugh to talk about the big business of football in america. Plus the race for amazons second headquarters. Senator cory booker will join us, to make his case after a day like this, most people would throw in the towel and order delivery. But you have a recipe for redemption. With blue apron, any night is a chance to see what cooking can do. After he spent more than two months, the billionaire investor, the prince is a free man, but many questions about his arrest still remain. Robert frank is here with the latest thats part of his video tour. One of the Big Questions is what was the price of freedom when youre worth 17 billion. He was released saturday, but like his arrest. The terms of that release remains a bit of a mystery along with 350 other suspects, and a reported crackdown on corruption, the arrests were led by crown prince salman, and those arrests were expected to raise over 1 billion from the suspects no charges were ever filed against him, but sources in the government told the media the allegations against him included money laundering, bribery and extortion. He has financial stakes in everything from twitter to citigroup, and of course he has the partnership with bill gates to own the four seasons. In the days before his release there were reports that the government was demanding up to 6 billion for his release in an interwith reuters saturday, a much thinner and more bearded ail waleed said the whole case was a misunderstanding there were no discussiochargb assured this is a clean operation that we have, and were just discussion with the government on various matters, and i cannot divulge right now, because we are in continuing conversations with them. Discussion. Thats all a little misunderstanding, alternates state at the hotel longer than he would have expected. Have all of the detainees released. Almost all of them, and many of them agreed to turn over the entire companies or pair some were fully nationalized. Thats right. Thats right thats one of the most bizarre things ive ever seen. I agree me too the whole thing, from the beginning to the end to michelles point, its harder to confiscate or freeze assets that are overseas without a conviction so the government didnt have a great hand here, except aside from the fact he had their agreement. They had no doubt there were piles and piles of corruption within saudi arabia, among that set. At the same time without distinguishing any one person in particular at the same time, when you were going to go after that kind of corruption, should there be some kind of rule of law, some kind of way that outside investors can look and understand how is it that you conduct your legal about is in this country that i may choose to invest in if you can seize that guys company, why cant you seize my company . Exactly and the future al walleds of the world who do you trust if the government can just take it . The crown prince has now made a lot of enemies. Yes. Within his family. Although this has been em from the outside world this looks like a kangaroo court, not even a court internally, this has, im told been very popular. Toronto police are now confirming that the billionaire drug magnate in a double homicide what is the latest the latest is they are ruling it a homicide. Theres a long and growing list of suspects. He founded the generic drug company apotex, with a lot of companies in the big pharma world as well as 150 lawsuits against him or the company at the time of their death. He had private investigators working for him, against him it was a very different life that they were leading they were selling their house, so now police are combing through the lawsuits, the suspects it was not a forced entry. It was something they knew this case just gets deeper and darker every day robert, thank you very much thank you very much newark, new jersey making the list of top 20 lists for amazon now it has to make the pitch to be the one joining us is scott cohn hes live in newark with the former mayor and current senator cory booker. Take it away, scott. Thats right, cory booker was the mac mayor of new york, new jersey. Newark, not new york. Are we looking at another Government Shutdown next week . I certainly hope not. Everyone knows theres a why bipartisan pathway forward to make sure we deal with immigration, which is probably one of the greatest Economic Opportunities that our country has. Most people dont know from new business starts to innovation to growing or economy is critical i think folks understand that, and to create a balance between protecting our borders, but also making sure that american vibrancy retains frankly, so many things that make us strong at home, we have to balance that. What are your deal breakers, as we go into this next week we talked about immigration, you have a bill to protect Robert Mueller is that going to be a part of it im hoping it is. We see almost astonishingly the whether its firing the fbi director or these are antidemocratic and belie checks and balances i have a bipartisan bill with Lindsey Graham to give reasonable checks and balances i heard from Susan Collins this sunday on the news, to other republicans, im hoping we can get this done. If all of this is wrapped up in this next week, how do we manage to get a deal and keep the government open . You know, ive seen in washington, its obvious not a matter of can we do it, do we have the a collectiv will we can partner you asked me what my deal breakers are i just dont want to leave americans behind i dont want to leave folks still trying to recover from disasters like our fellow americans in puerto rico, 40 who dont have power i dont want to leave veterans behind who right now are struggling with health care. I dont want to leave the pension problems behind. I dont want to leave the people struggling with opioid addiction behind, and i definitely dont want to leave our fellow americans, d. R. E. A. M. Ers, who are americans in every way, serve in the military, are first responders, dont want to leave them behind. Those are my sort of deal breakers theres a lot of heat going on in washington right now no heat here today. Exactly a lot of people talking past each other you had a pretty well publicized runin with the secretary of Homeland Security in the midst of all this. Was that helpful in the end . I dont want outrageous ever normalized in this country we see things happening that are blowing up norms that we almost are missing right now. I was walking out of my office and i look up and there was a porn star on tv, and i was like, whats that . My staff goes, you missed that this is a scandal. Scandals that used to lurch this country seem to be coming every single day to have a cabinet secretary lie repeatedly, according to Lindsey Graham and dick durbin, who were in a room, to lie about vile, bigoted comments that do hurt. 85 terrorists attacks since 9 11 over 70 have been rightwing, White Nationalist groups that kind of language from the white house gives license to awful things happening for her to lie time and time again, we should show outrage. We should show anger dont let this kind of behavior normalize in American Government that doesnt undermine things getting done i got a great bill attached to the tax bill with tim scott that creates opportunity zones in lowincome areas to create investment for places like amazon let me ask you about amazon because were tight on time. What is the case here, and 7 billion in incentives for a company with 140 billion in revenues, not corporate welfare . Not at all. Amazon could help to transform the story of american inner cities this is one of the cities in the middle of a transportation superstructure, major colleges and universities newark has attracted panasonic and other companies. Were having some technical issues were going to come right back guys the shot looked rough there some sort of obviously transmission issue there we apologize for that. All right, well be right back today, the new new york is ready for takeoff. Were invested in creating the worlds first stateoftheart drone testing facility in Central New York and the mohawk valley, which marks the start of our nations first 50mile unmanned flight corridor. And allows us to attract the worlds top drone talent. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. It is official, Major League Soccer green lighting an Expansion Group to David Beckham and his group. It puts the magic city on track as just 11 markets with teams from the five big sports, of course, mlb, nba, nfl, nhl, and now mls. Joining us, David Beckham with another owner, jorge mas congratulations. A big deal for miami thank you ill start with the negative, and well work up from there heres the thing, david. There was a miami team the miami fusion i was one of the few who actually saw them play 97 to 2001 why is this team, this organization, going to be able to survive and prosper when the previous one had some trouble . Well, i think theres a number of reasons. Firstly, thank you for having us on obviously, its an exciting day for us and one that well never forget but you know, going back to the fusion obviously, you know, that was back in the day where the league wasnt as stable as it is now. The league is so stable now. You know, its made huge strides in being more successful, a Bigger League in the last ten years. I moved to l. A. From real madrid, and i could see the focus on the league and what they wanted to do with this league and take it to different places and a different level to compete with the European League so the reason why we feel that were going to be successful and were going to be successful in the mls, and globally, because were not just looking at us just being your, just your mls team, were looking more global than that. But you know, were very much focused on having, you know, the success that the other teams have had throughout the league, and the reason why this is different, you know, we have an amazing set of owners, amazing set of owners who care about the sport, who care about the city you know, we have obviously the mas brothers who live and breathe the city that was the missing components for us we have a real strong group of people that will continue to strive until we make this a success. Sure. The mas family very famous in miami. Its michelle here how are you good. Good to have you on. Why are you swooping in here why do you think this is a good investment first of all, great for the city of miami. We deserve a soccer franchise. You know, the cultural mosaic that is miami with the Latin Community and the makeup of it, soccer runs in thar blood. Mls is an up and coming league this is going to be a global team the ownership group, were all winners. We know what were doing were going to invest in our team and the community, and the future for mls and soccer is very bright. I think youll see miami be a beacon for the u. S. Globally based on our relationship with mls and david, were going to do great things david, youre going to have a new stadium. Thats one of the very intimate stadiums like the one in harrison, new york, which is a wonderful venue to go watch a game youre close, youre in. You dont miss a thing you alluded earlier to the idea that you want, ideally, the mls to be competitive on the global stage. How long do you think it will take before mls is up there in the top five of world leagues including the spanish league, the boon abandons league, the epl and so on. How long i always said these things take time. And we need to let the league grow in a very organic way i think at the end of the day, its a very young league, like jorge says this is a league thats only been around for a number of years, where you know, i think the premier league, these leagues have been around for a long, long time. You have to let it grow organically, but i think the movement in the league and what the commissioner has done and what the other owners believe in, this league has grown very largely in a very short amount of time. So yes, we want to compete with the European Leagues, the leagues that get the viewership that we want to get to, but if you look at the statistics and you look at, you know, the amount of fans that are going to these different you look at places like atlanta, portland. These teams are selling out week in, week out and that is what you look at you know, there are some times i have played, places like seattle, played in front of 45,000 fans. The first game in new york was 65,000 so theres an interest there and we know that but its about getting interest even more so, but the viewers, the fans, they love this game. And theyll come and you have shu vine stieger, correct i love that. Yes when you bring players like this into the league, when you bring players thats great, we want to grow this league and bringing in players that have played in europe, that have won everything in the game, is great for the league but its about the homegrown talent that we want to achieve weve got a hotbed of young talent in this city. And thats what we want. Okay. David beckham, jorge mas, thank you. Congratulations. I look forward to it appreciate by the way, welcome to the second hour of power lunch. The second half, if you will lots to get to in this hour. First, lets get you caught up on the markets stocks posting modest losses yeah, apparently, the dow can go down no record highs today. The dows first drop in four sessions the s p, its first slide in three sessions not down a lot, about 76 points. Goldman sachs, ge some of the winners. Apple down about 5 in just the past week. Your big corporate story continues to be wynn resorts it continues its fall from friday, and the back of that bombshell report from the wall street journal. That stock down 13 in a week. And dr. Pepper snapple soaring after saying it will merge with Keurig Green Mountain. And retail continues to work dollar general, home depot, costco, walmart, and pvh all hitting lifetime highs major indices have risen 7 to 8 just since the beginning of the year. You may have heard the term meltup to describe this rally whats a meltup what comes next for your money Mike Santelli with his definition hey, mike. Michelle, ill try to approximate a definition because there really is not a formal agreed upon definition of the term meltup, but its definitely an upward acceleration in stock prices from already high levels, in this case, record levels, with few pauses or pullbacks, today not withstanding some strategists have tried to put numbers on this, like a 20 gain in six months or 50 over 18 months, but it gets down to this idea of this furious rally that doesnt take many breaks and gets you to successive new alltime highs are we in one . Were either in one or close or on pace to be in a meltup phase because we absolutely have this nearly 8 gain in just a few weeks here up 18 in five months. You can keep going back and coming up with a superlative were somewhere close to that. What happens next is the obvious following question, and really, the answer is that these phases tend not to be how a bull market ends you do tend to see a choppier market after you finally do exhaust all of the upside energy for one of these strong meltups but its not the way that bull markets tend to give way to a bear market. Further gains are expected every time you look at the past periods, you did have a little bit more choppiness, a few more pullbacks, but more upside for the full year. Every year that started as strong as this one had above average earnings by the end of the year see you soon. Stocks posting at we said modest losses today after fridays very strong rally but we have a big week of earnings ahead of us how should you be positioning your portfolio longer term lets bring in matt, Vice President and Portfolio Manager with rockland trust, and christina, i thought stocks werent allowed to go down what is happening today . Sell everything sell the house, sell the car, sell the kids. No, seriously. Is there any time in this market that we are going to have to worry . Because i guarantee you, if we dont have again tomorrow, there will be some chatter because we had one day down and five up. Thats how its gone for about two years. Theres nothing i would argue to worry about, but there are very significant risks so i think the bias is upwards for the stock market weve got a strong Global Growth picture. The imf confirmed that just the other day and actually upgraded forecasts for growth globally. We also have very accommodative Monetary Policy. The risks lie within that picture. And that is first and foremost, a Monetary Policy error. More tightening than expected. Do you have kids . I do. So you know a kid, dont do something, you might get hurt. And they ignore you, they ignore you, they ignore you the more it happens and they dont get hurt, they ignore you more, until finally they get hurt or break that glass, whatever investors, we have been hearing about these risks for years. North korea, trump, earnings, and guess what i worry now were at a stage where everybody is just ignoring everything and buying it last week, we had the biggest inflow of money in the history of the stock market ever and thats a very good point. What i would do is refer back to the old adage of Warren Buffett r when everyone is getting greedy, its time to be fearful and fice versa i wouldnt say fearful, but be careful. Remind ourselves of the important tenants of investing like diversification we need to be thinking more in terms of 50 30 20. 50 equity, 30 fixed income, well diversified fixed income and 20 alternatives we want lower correlating close to noncorrelating Asset Classes in there because we could have periods of disappointment, even there is an upward bias to stocks matt, are you worried about Rising Interest Rates . Yeah, in the long run, i am not right away though. I think were in a reflationary environment and were starting to see the yield curve push out to ten years the hurtyear is still below where it was a year ago. Thats a good sign we dont want to be on a flat yield curve. That can suck the life out of the markets are banks are not likely to lend if theyre not making anything on the spread there. Im worried in 19, maybe even out to 20, as the shortterm rates start to approach 3 and were looking at 4 and 5 long term rates, what that does, but i think we can trade through the feds three increases this year and be higher by the end of the year there might be shortterm consolidation along the way, but i think anything we dip in the first year we get back in the second no one ever lost money taking profits judiciously. Is now the time . Yes i look at my portfolios and im rebalancing to strategic targets. Im looking at technology, up 40 last year, and looking at sectors that are more beaten down, things like the Energy Market which is starting to come around in this reflation trade, is an area im rebalancing from and to i think taking profits is a wise thing to do. Anything i should sell . I wouldnt argue you could sell unless youre significantly overweight for example, domestic equities we want to make sure were not overexposed there. A lot of opportunities in National Equities and valuations look more attractive for some, particularly em. All right thank you guy, thank you, lady and dont forget dividends. Never a little extra juice dont forget the milk my mom always said, dont play ball in the house heres whats coming up on power lunch. The latest round of nafta negotiations wrapping up today big implications for everything from autos to agriculture and your money did the talks get us any closer to any kind of a deal . Plus, twitter under fire over fake accounts you have got to hear this story. And can one person be too closely tied to a brand . What the recent assault allegations against steve wynn could mean for the cpa aomnynd its future all that and much more coming up on power lunch. En you have a ry traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Evaluating patients remotely is where i think we have a potential to make a difference. barry murrey we would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. As we get faster wireless connections, itll be possible to be able to operate on a patient in a way that was just not possible before. When i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . You know whats not awesome . Gigspeed internet. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. The latest round of nafta talks ends with no deal. U. S. Trade representative Robert Lighthizer said some progress was made but its moving very slowly the u. S. Waunldz to modernize and rebalance the trade agreement. More on naflta, immigration, the state of the union well see tomorrow with former new mexico governor Bill Richardson and former senator and governor bill greg governor gregg, what are you expecting to hear from the president tonight . What would you like to hear . Do you want to hear what we call the state of the Union President or the flor of the u. N. President . State of the union in my experience is broke into two types. One where the president lists a litany of things he wants to do over the year. And coming year. And its usually pretty boring, and most of the stuff doesnt get done or states of the union where the president gets a thematic and upbeat, positive view of america and where he wants to take america. I hope its the second i hope we have a very positive speech i hope its not too much about the president himself. I hope its more about where this country should go, how it can get there, and why this country is really on a very good path im shocked you might think he might talk about himself. I cant imagine why governor richardson, of course, the state of the union is tomorrow night, not tonight what are you hoping to hear from the president tomorrow night well, as a member of congress, i went to a lot of state of the unions, and my hope is that the president reaches out to democrats i hope hes as sensible as jud is, but my worry is that hell be divisive again, that hell play to his base on immigration, that hell play to his base on many other issues where theres division traditionally, state of the Union Addresses are lets come together and i hope he says that on issues like infrastructure looks like nafta is getting a little better in negotiations. That he mentioned that that he talks about how perhaps on immigration, which is the most divisive issue, we can come to a compromise and avoid another Government Shutdown. But my hope is that you see a new president reaching out, not just to democrats but to people that disagree with him quickly, guys governor richardson, a quick question for you based on your long experience with north korea. The past few weeks have felt a little bit different is there anything that you read into the behaviors or the lack of activity or the sort of relationship between north and south korea that will result in north korea participating in the winter games is there anything you see there, anything in the air . I see little rays of hope i try to be an optimist. I think north and south getting together on the olympics, on nonnuclear issues is a step in the right direction. I think the sanctions that china has imposed are starting to have bite ill give credit to President Trump for pushing those sanctions. What i hope also and what has not happened is i dont want to hear or see the president s tweets preempting his secretary of state, talkingabout nuclear buttons. I hope he doesnt do that in the state of the union i do see a little ray of hope. A little bit more potential for diplomacy, a dialogue, rather than preemptative strikes and military operations. Governor gregg, what do you think about infrastructure, the president really wants to do an infrastructure bill. Traditionally, republicans arent that into spending a lot of money on a lot of projects that never actually happen if you think about the Shovel Ready Projects that were supposed to happen under president obama how is this going to get worked out within the republican party, do you think first, let me say that bill is probably the last person who actually did diplomacy with north korea, and i think its great he thinks theres some hope there secondly, on your point on infrastructure, yeah, you can do an infrastructure bill, but you need to pay for it this shouldnt be passed on to our kids as a debt i think that a much more intelligent way to go about this would be to focus the effort on skills, specifically getting people more ready to deal in this Digital Economy throughout our country. And i think Immigration Reform is a critical part of that, by bringing people into this country who can contribute to our economic strength and add value to our nation. So yeah, an infrastructure bill can be done whenever theyre willing to pay for it. I would hate to see them doing it without paying for it i suspect it might be done, hopefully sooner rather than later, but i would rather see more emphasis on getting the American Worker up to speed to deal in this very competitive world. Theres three theres a billion, 300 Million People in china. A billion, 200 Million People in india. That means theyve got us outnumbered by 2. 2 billion people for us to compete, we have to be very creative and have a talented work force. Understood, productivity is super important and the way to do that is often through education. Governor richardson, one of the president s hopes is that senator gregg raises the issue of how do you pay for it instead of it being fully funded by the u. S. Government, instead, there are Public Private partnerships where theres actually leveraging private dollars to achieve that. Do you think thats possible considering your experience in the u. S. Government . Yes, i always thought that infrastructure bill was the one most likely to bring democrats and republicans together theres some differences now, i think it should be private dollars, but also federal dollars. I think you have to have that. The State Government should chip in also. And i think there should be a way to finance this. Look, we already have a debt this tax bill was generally positive for the economy except for the fact that its 1. 5 trillion debt in the next ten years. We cant get into debt again and i agree with judd. We have to pay for it, but i think a Public Private partnership of perhaps not equal but private dollars, federal dollars, it cant just be the private sector that finances it. Lets put some money in the game from the federal government because what youre talking about is bridges, youre talking about an electric grid, roads, and we desperately need to rebuild that infrastructure that is literally falling apart yeah, i think theres bipartisan agreement there thanks so much thank you bruised apple, shares of the tech giant down more than 4 in a week on iphone x sales worries. 45 billion in market value wiped out in that time buy on the weakness or is there more of a slide ahead . Plus, wynn casinos falling another 7 today can steve wynn the man be separated from wynn the brand . And twitter under fire for enli fe abngakaccounts this is a story you have to hear next thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. 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Com to see what adding futures can do for you. Everybody seems to know there are fake accounts on twitter, but maybe we didnt know how bad twitter under fire for enabling an eco system of fake accounts and bots julia has a deep expose by the New York Times that i found absolutely fascinating absolutely fascinating, and twitter is at the center of the expose on fake social media followers. Detailing an eco system of fake social media accounts. Bots purchased by celebrities, athletes, and politicians ranging from Kathy Ireland to ray lewis, even a twitter board member devumi is the name of the company, some based on stolen idents to reportedly 200,000 customers. Twitter overestimated its monthly users saying no more than 5 of its users are false or spam accounts tweeting the tactics used on our platform and others as described by the New York Times article violate our policies and unacceptable to us were working to stop them and any Companies Like them. New York Attorney general Eric Schneiderman launching an vention into devumi, even mark cuban with nearly 8 million twitter followers weighing in saying its time for twitter to confirm a real name and a real person behind every account, for facebook to get far more stringent on the same. Despite this report, twitter shares are 2 higher, following gains on friday. Back over to you go ahead. I was going to say, a bigger store ay than people with fake followers. Its expected to go to 50 billion in advertising in a couple years at some point, advertisers are going to realize, hey, you know, Julia Boorstin or brian sullivan, you have 60,000 followers of which 200 may be real this is a major billion dollar economy that is at risk. This is a major, major problem. I do think its worth separating how facebook and twitter are different. Facebook has been growing very quickly over 2 billion monthly active users over a billion daily active users. Learning more from facebook when they report earnings tomorrow after the bell, but facebook was built on the idea of peoples real identities. Twitter, on the other hand, you never had to have your own persona identified in your twitter account. So it sort of lent itself originally to people having multiple accounts, and twitter has even said there are some kinds of bots that are good. Twitter says it supports the idea of bots who tweet about the weather or earthquakes they sort of have this weird relationship with bots and they dont want to say theyre all bad, but there has been a lot of concern that the numbers, the 330 million monthly active users that twitter has, what percentage of them are not real . Last year, we reported on a study that said as much as 15 of them may be fake. That was, i believe, a usc study. But twitter has always said, recently has been saying less than 5 are fake so certainly, an area of great concern if youre an advertiser paying for reach on twitter. Thank you fascinating story, not going away appreciate it. All right privacy advocates have long warned about the amount of data like our location and spending habits that were giving to tech companies. Now, the u. S. Army is raising an alarm about the security leaks soldiers are creating by of all things jogging nbc News Pentagon correspondent hans nichols is here with the story. Good afternoon. What happened at the pentagon is theres a Department Wide review on what the policy is, what it should be in terms of turning on or off your notifications on devices like strava, on your fitbit, because what happened. Theres some 27 million users that they have they have uploaded this global heat map in the map, you get firm outlines of u. S. Military bases in war zones you clearly see highlighted perimeters some of the bases i have visited. Its obvious to be where the running routes are you see that cast in sharp relief from this data. Its not only the known bases. Were also discovering where we long suspected there had been bases, whether theyre forces or agency bases, cia bases, as they say here, threeletter agencies. You see a few in somalia you get more detail on some of the bases in niger it really is a road map to where u. S. Service members are serving abroad and what sort of activities they get up to on base it has huge implications for Operational Security secretary of defense is aware of it they have a review down in tampa, which controls a lot of this area. Theyre talking about adjusting the policy and making it more firm that if youre overseas, you should turn off that gps tracking device. You shouldnt be allowed to use it, basically, right that simple. Inside here in the pentagon, a lot of guys i have spoken to and females, guys and girls, theyll wear fitbits, but when they go in secure areas they take them off. Theyre called scifs here. Theyre all kinds of secure areas. Some people say they have stopped wearing their fitbits because they have to take them on and off so often in the pentagon so they leave them at home, even though the pentagon earlier was urging their soldiers to use fitbits in part to get their soldiers in shape hans, thank you so much crude hitting fresh threeyear highs in the past week jpmorgan thinks the run is not over lfi o w nt. Hello, everybody im sue herera heres your cnbc news update at this hour. The European Union reacting to President Trumps recent criticism over trade the eu says it will retaliate quickly if the president initiates unfair trade measures against the 28nation bloc the European Union stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measures from the united states. Panera bread is voluntarily recalling some cream cheese sold in its stores because of possible listeria bacteria contamination. No illnesses have been reported so far, but the products include all varieties of two and eightounce cream cheese with an Expiration Date on or before april 2nd. During yesterdays nfl pro bowl, one of quarterback drew breess three sons was interviewed on the sidelines well, during the interview, if you take a look behind them, the two younger siblings got into a fight. The eldest then dealt a little bit of his own retribution to the three before dad had to step in im not allowed to say boys will be boys anymore, right i was just going to say that. You cant say that. I guess we cant do that. Gender insensitive. Kids will be kids right there you go thank you, sue. You got it. Lets get a check on the markets. The major indices are off their lows but still in the red as the tickup in sovereign Interest Rates giving investors pause the s p is lower by 10 and nasdaq lower by 20 financials and health care are the best performing at this hour utilities, high yielders, telecom, the laggards. And the oil market is closing for the day. Lets deto Jackie Deangelis at the commodity desk good afternoon. Crude prices shutting just about 1 today, but holding over the 65 mark for the close the session low, 64. 98. A test of that key threshold, but not able to hold to the down side now, it seems that everything took a pause today stocks, energy, metals, and the like profit taking after last weeks run. Dollar index still under niement but seeing green today. Its going to be a big week with potential catalyst, state of the union, the feds. Brace for some choppiness, particularly in oil and gold thank you lets stay on that topic joining us now, jpmorgans senior strategist who released their 2018 oil price forecast. He sees prices go up, raising the price by 10 a barrel to 70 and 63 a barrel for usti traded do you worry at all that the big jump in rig counts, we seen it all year, saw it last week in particular, is ultimately going to work its way through the u. S. System and that production will once again outstrip demand and send prices lower . Absolutely, thats what were also zooming in on our forecast. The issue is this 2018 is going to be a year of two halves the first half is a year of demand and the second half is more about the supply, which is coming back in reaction to the higher oil prices. Given that, despite given that, the first half, we still believe will be much more tighter than we had initially anticipated, be it the stronger pmi numbers, the Stronger Economic growth activity, higher consumer better Consumer Sentiment here, which is all taking into account the higher demand for oil products you can see high we have become much more bullish in prices for the first half only for the first half, correct . If youre going to buy oil and belong, you better do it before, what, the fourth of july or labor day . After that, the bull situation may be taken off the table i think so because whats going to happen is what were seeing right now, the support in prices is going to incentivize shale production, more than what we had initially at 60 alone, were seeing an exit rate of december 17 to december 18 of one Million Barrels a day of shale production alone you can see, if that oil price was to go up to 70, that increases by a multiple of 1. 5, if not more. And that clearly is going to show its impact on oil prices, but more towards the latter half of 2018. In the first half, i think were still here to see more spoerpt in prices as we have indicated in our price forecast, and before the summer, looking at more towards the opec meeting which is due in the third week of june this year. How important is it that venezuelan production just seems to fall off more and more every single day, as that country implodes absolutely very important one of the key risks in our splay demand balance has been on the supply side, the opec production, particularly arising from venezuela on one hand, we keep opecs production more or less unchanged for 2018, but that unchanged nature is taking into account any increases from countries like libya, niyear yeah, or iraq, being more than offset, actually in many cases because of the declines of venezuela when were resuming at 400,000. I think venezuela poses a big risk, and any additional decline in venezuela production would lead to even further tightness in the oil markets in 2018 thanks so much. Turning back to a big corporate story. That would be wynn resortsboard opening an investigation into Sexual Misconduct allegations against the ceo of the company and the founder of the company, steve wynn this comes as wynn shares keep plunging so does steve wynn need to be fired and whats next for the wynn brand dean crutchfield is founder of the dean crutchfield associates, and Joe Ann Lipman is author of thats what she said, what men need to know and women need to tell them about working together it goes on sale tomorrow tomorrow. What . Tomorrow. I big your pardon i said it goes on sale tomorrow thats what i just was saying thank you very much. Dean, let me start here. The board has instituted an investigation into the wall street journals story, which is extremely specific and detailed how long do they have before they need to take action this week without doubt. They have had time to acknowledge it days, not weeks they should be doing it this week, and ill say my advice straight away, you need to fire steve and fire him fast if you want that stock to rebound joann look, you know, any criminal behavior of any sort, there should be zero tolerance, right . So absolutely, if theres criminal behavior, the executive needs to be fired. But i would say that, you know, he has theres a couple of things, you know, we were talking a lot about what happens next at wynn resorts, right . Can it survive without him and there are a couple of real downsides here he is extremely closely tied to the management of that company you know, how deep is that bench . And secondly, is the issue simply of the casino licensing hes already going to be investigated this is extremely highly tightly regulated industry but i would say on the plus side, when were talking about branding and can you survive as a ceo, on the plus side, unlike a donald trump, he personally, while his name is on the company, he is not personally associated in the mind of casino goers. They mostly couldnt pick him out of a line. He is another name the way hyatt is a name. So i dont think that that alone is going to be kind of a killer situation for the company. Ultimately, though, dean, do you agree with what joanne just said, in other words, people go to the wynn because its the wynn, not because it has cele celebrity behind it . To me, i have been to the Wynn Properties a lot. Wonderful places, great entertainment, and i Never Associated them with steve wynn, but now i do thats all we can think about. I think its quite damning i think its a company that needs to go through a lot of change to sort itself out. Its got that time now, so it need to open up the line of communication and consider a major rebrand in terms of its image to the world so excuse me, let me ask joanne one further question here if you were the head of a company or a trade group right now that was planning to buy a block of rooms at wynn resorts for a convention or something, would you cancel yeah, i think that is going to be the question look, its going to be very hard to associate yourself with wynn at this moment in time and you know, i think youre raising a really good question here, too, about the branding of the company. We have seen when companies have run into trouble, we have seen them change the name of the company. But we have also seen ceos go through horrendous trials and the company survives Martha Stewart even went to jail, right . And managed to keep that company going. So joanne, your book, thats what she said, do you cover what happens if the ceo of the company does some of the things that steve wynn is alleged to have done. Thats not what youre talking about in your book, right . This is above and beyond, at least these allegations are. Yeah, so what the book gets into is this idea that there are so many issues that women face at work, that men just arent aware of so you know, we talk amongst ourselves all the time about these issues, but things like being underestimated, underpaid, overlooked, marginalized, interrupted, all of these issues we talk amongst ourselves, but thats half of a conversation, and can get at best a half of a solution, but the important thing is all of those elements together creates the environment that enables the Sexual Harassment and the abuse what do dean, joanne and i and brian need to know whats the key we need to know so much of this comes down to awareness. There are so many issues that once you see them, you cant unsee them so in terms of thats what im thinking about with steve wynn when i read the article of when he would go to the spa, for example. Thats for sure thats for sure, but every one of these sort of daily inequities, every woman knows what it feels like to be in a room, in a meeting, where you Say Something and it seems like its crickets, nobody hears it and then, you know, bill repeats your point two minutes later and suddenly, bill is the genius every woman understands that women are interrupted three times more frequently than men Supreme Court justices, female Supreme Court justice are interrupted three times more frequently than male Supreme Court justices once you see these things, you can do something about it. In the book, i actually interviewed men who are trying to close the gender gap by reaching across the line and understanding these issues and actually, you know, creating policies, now interruptions rules. I would argue that women who interrupt tend to be scorned for it more often than men who interrupt. You are so, so right about that the other thing that women i wouldnt think of interrupting, would you . Absolutely not. Brian has been uncharacteristically silent. The other thing women are penalized for is talking about their own achievements when women talk about their own achievements, theyre penalized, seen as bossy, brash, abrasive, all those terrible things. Theyre very unlikable a man can read from the same script of the same, you know, the same resume, essentially, and he will be rewarded for it so there are these issues that we simply have to be aware of at work that we actually can extend a hand and cross that gender divide and bring us together there are a slew of tactics in the book that i talk about got it. All right, dean, thank you. Thank you very much very quiet here crickets joanne, thanks. A week of giant earnings ahead. Facebook, google, amazon, apple, boeing is that enough theres more that should be enough for you, america. What do you want you want more power lunch . Okay, were back after this. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Welcome back to power lunch. Im Jackie Deangelis i want to draw your attention to a headline crossing about exxonmobil ceo darren woods writing a blog post on the companys website talking about a 50 billion Investment Capital expenditures over the next five years. Woods crediting not only the strength of exxonmobil as a company, but also the historic tax reform plan that he says will benefit his company and give it the ability to do that of course, he talks about some of the specific types of projects but also the job creation, guys, that will come along with this. Back over to you does he specify how much is new verses how much they were going to do already . Does he imply all of this is from tax reform . He doesnt do that. Im sure some of it is new, as a result of tax reform, in addition to the cap x they were planning, but if you take a look at his comments, it really is a very specifically focused on that it seems as if hes almost trying to make the point that this really is a very historic plan got it. Thanks, jackie a lot of big names reporting earnings this week we have fast food, stocks, retail, even defense names, but the one sector leading headlines is tech. Alphabet, facebook, amazon, all set to report, so what should investors expect joining us to break everything down, tim seymour and steve grasso when it comes to the tech giants, whats your favorite play well, i think its a tale of two camps with facebook and certainly with apple underperforming and google really and amazon have been through the roof amazon hasnt been this overbought in the numbers for a decade, believe it or not. Its amazon were talking about. Google and facebook to me are the easiest buys based upon valuation. In googles case and facebooks case, tremendous ad growth, 65 to 70 of the ad market. Facebooks ad growth is growing at about 41 this is roughly a 25 times 2019 multiple at 9 a share so at this phase of a market where people are concerned, expectations are very low on facebook i actually think thats a very interesting call, and google to me is executing on all cylinders, but they have been rallying hard. Steve, whats your play here . So just to push back a little bit on facebook, i think whenever you tweak with that news feed, theres a lot left to the unknown. It accounts for 85 of the revenue for facebook, any tweak i would see as a head wind you have to let that simmer a little bit to see whether you should dive back in. I think google is the headsup play here. Youtube, the more and more we hear about this crown jewel, i think the more successful it becomes. Theyre in your home, competing with amazon, with apple. Im long apple this one is the underperformer i think this is set up for nothing but a bounce going forward. So i think youre right to own apple. Stay away from facebook. Google, youre still keeping the course you have addressed apple. How about you, tim look, apple has a lot of levers they can pull in the Capital Market side, especially in the new tax regime. Again, apple is about as oversold as youre going to see. You have a 25, 26 9day rsi, which means people are concerned about the supply chain cuts. Apple is a fantastic company, and at these levels also it looks very interesting i think this december quarter is already out there in the price i think the next two quarters are not going to give you a ton of catalysts so i think its dead money right now. All right, so differing opinions there lets move over to boeing, which has had a tremendous 12 months stock up more than 100 in the past year. How important are the results, steve . So i think if you look at their recent defeat with bombardier, i think people look at that, is that a reason to sell it . I have owned this stock forever and sold it about 200 points ago. I was dead wrong it can go higher, it will go higher, i think you stay in it before we go, tim, mattel set to report this week as well. The 20year stock draft picks. This has been dragging down seymour alpha this entire season i think mattels story is really about where they have been able to get inventories and control theyre trying to grow in the digital ad space i think toys r us news is made to be bigger news than it should be, but they need to compete in the digital programming for childrens toys. The hasbro deal no deal is going to drive the stocks performance in the short term. Thanks, guys, steve and tim tim wasnt wasnt kidding speaking of the stocks draft, the race is getting tighter. We have kevin oleary, selfnamed mr. Wonderful still in the lead. Boeing, apple, amazon and facebook all report their earnings this week, so anything can happen between now and the end of the competition its going to come down to the wire thats why you have to join us on monday you should join us every day but next monday, really, because thats the day were going to reveal the winner it is a show you cannot miss youll notice, tyler, in the prompter cannot was underlined so i emphasizeded it slightly by raising my voice and leaning forward. Lean in. Ahead, lots more on apples town downturn. Tdohe technical say its time to buy well have more when we return on power lunch. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Time for trading nation. Lets trade apple. Ari, apple, a rare losing streak one of the only two dow stocks down this year down 5 this week. How do the charts on apple look . The charts are still fine for apple. We think downside is somewhat limited as it stands not necessarily one of our top ideas either here are the levels you have to watch, brian support starts pretty much right here at 166. Below here it goes down to 160 in general, we are of the belief that corrections into a rising 200day moving average are corrections to buy however, the stock has broken down a little bit more noticeably on a relative basis our preference is with the more internetrelated fang names but i dont think the tops are in for apple. We expect it to do well over the coming months. A relatively positive view for apple from oppenheimer what do you think . If you look at it from the stock climate, it would be more concerns with the iphone x production the asp variability out there is a really interesting nugget well be watching for here in this weeks report one of the things i would say from the options perspective that i think is really interesting is with as much uncertainty and with the yeartodate performance, i would have expected the implied move ahead of earnings to be normal its not its pricing in around 4 . The sentiment is much, much more bullish than weve seen. That risk to the downside is at the some of the lowest levels weve seen over the last couple of years as to ari seeing levels for potential buying opportunities, were seeing investors sell the 165 stot puts and buying the 170 strike calls, really looking to participate if apple does, in fact, break out to the upside here overall, while the stock looks bearish, the options are bullish. Bullish, there you go thank you both very much for more trading nation, you can go to the website at trading nation check please is next announcer now the latest from tradingnation. Cnbc. Com and a word from our sponsor. Position size and risk reward ratio are two important aspects of building a winning trade. You dont want to single position to be too big a percentage of your tradeable assets additionally, you want to make sure theres enough profit potential to justify the risk youre taking. Consistently constructing suitableras tdeand adhering to your exit plan can help you build on trading successes think your Large Cap Equity 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 i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom doughnut cutters. Wow all with points. Thats how i created the ripple. The doughnut, in a doughnut, in a doughnut. Suddenly, its everywhere. I mean, it really took off. What will you create with your points . Chase for business. Make more of whats yours. Key story of the day, rising interesting rates nearly all over the world germanys fiveyear bund positive for the First Time Since 2015 i mean, barely, barely positive, but still. You no longer have to pay the German Government lend them your money. That seems like a positive development. Okay, mine is the deep dive the New York Times did, the fake followers on twitter listen, nobody cares about social media unless youre an advertiser and you have billions of dollars at stake. This is a big deal theres a lot of stuck trickling out, fake news, fake followers, you have to be careful a lot of money at stake. Lets look at the weeks market markers a week full of them starting with big profit reports all week long a fed meeting, a state of the Union Address and, finally, a new jobs report. That is a lot of information for the market to digest well help you through it all week long. We will yes, we will. Thanks for watching power lunch. Closing bell starts right now. Hi, everybody, welcome to the closing bell. Im kelly evans at the new york stock exchange. Im scott walker in for bill griffeth. Were watching what could be a Major Development in the nafta talks. And new information on what could be the biggest tech deal ever. We start with the rising tenyear the Interest Rate crossing the 2. 7 marker earlier. What does it mean for Interest Rate sensitive stocks . Dominic chu live at headquarters. The highest since april