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Stocks are in the red, at least no now do you as much as check out movers, underarmour, soaring, earnings estimate were met blue apron rallying. And wayfair hitting new alltime highs. Climbsing about 6 in that time. All right. For more on the markets, le ate go to the New York Stock Exchange and check in with bob pisani bob . Tyler, 111 points in the dow, used to be big news a few weeks ago, but not anymore were starting to settle down. Im not saying its over yet advancing to declining stocks. The volume, surprising below average from what weve seen in the last few weeks, volatility is moving in a much narrower range. Trying to find some footings sectors, well, the market leaders used to be slightly to the down side. Banking are fractionally positive consumer staples, defensive group has generally been stronger all day here. Finally were following as interesting story from an anonymous whistleblower who has written a letter to the s. E. C. Alleging we dont have his name or what he does allows firming to move up and down by posting quotes without needing to physically engage in any trading itself hes alleges a breach of fiduciary responsibility by the cboe s they say for its part it lacks credibility. Rebecca patterson is a managing director and also a cnbc contributor, and mark travis is president and Portfolio Manager with Intrepid Capital funds. There is lots of trades that are put in the market and then canceled put in the market and then canceled should we see any evidence of this i havent seen any evidence of this. I dont do that type of trading for a living day to day, so i wouldnt necessarily be the right person to ask. What is frustrating and a shame is whether or not these allegations are true the fact that theyre plausible. We have seen this before with libor, weve seen people found guilty in court. We know this is possibility. I hope its not true even if theres thousands of great people in the industry, theres some bad actors. It doesnt help confidence, does it it takes me back to the summer of 2007, as you recall, barnes sterns, mortgagebacked funds that goat the cracks in the armor, so to speak of mortgagebacked lending, and unrolled from there. You know, theres a lot of inappropriate products being sold here, levered shortvix products they blunt of a lot of peoples money. Honey, i just got of your retrirmt plan. Its very unfortunate. If theres culpability, we should find out who it is and deal with them appropriately, but i really think a lot of people are doing the opposite of buying low and selling high. They were selling the low price volatility, when they should have been buying the lowprize volatility why do we have they products in the first place, mark and rebecca . What purpose do they serve other than to make the manufacturer of the product or the seller of the product money . I hitted nail on the head the ducks were quacking and we fed them now theyre on the barbecue grill. And i think for the person watching the show today, the point is whether its an etf or mutual fund, no matter what the Financial Product is, you still had to do due diligence. Just because its etf dont assume its cheap or has liquidity. You still have to do the homework and its all there on the public i think in texas they have the saying, got too big for their britches i think thats whats happened here now theres one tool to use to gauge the Market Sentiment weve talked about this the last couple weeks, the vix became the dog and the market became the tail the vixs volatility caused the market to move rather than the other way around do you think the vix has outlived its usefulness. I dont think its outlived its usefuls in, but theres a lot of greatlessons from this. The vix caused the problem rather than measuring the problem. I think its more like gasoline on the fire i think the wage data caused the problem and the vix exacerbated this we saw this before in 2004 to 2007 we saw the volatility come down this is the sequel people are figuring out i cant make money in bonds, equities seems to expensive, where can i get and they were created. The vix says 28, so no thanks three things, brian you had to have questioned your last bet when bama shanked the kick i think you thought you were going to owe me money, but nonetheless the vix creates a lot of movement and prices move quicker than Business Values so, yeah, ill look at the vix im not trading the vix. The buyers need beware just a moment i think people see the label etf, and they think safe and bland. And free. Low cost, notwithstanding attributes you. And quick question, do you think the worst of the spasm of sets that weve had over the last ten days is over . I think probably yes. The way im saying that is just educated guessing, watches the flows, looking at the money moving out of these products and looking how this is mirroring the selloff we saw in 2016 and august 2015. Those crashes were propelled by Systematic Trading this is similar, if that history plays a decent guide. Ive got to leave it there, mark so sorry. No problem. As always, great to see you. We have breaking news at the white house with Kayla Tausche reporter brian, the president wrapping up a meeting of bipartisan lawmakers from relevant trade committees as well as members of congress, and the topic as hand was this investigation into potential steel and aluminum tariffs, and what you saw in this meeting was a handful of republican senators urning the white house to proceed can caution. One going so far to say or newted by other countries if the u. S. Were to proceed, saying that there would be net job losses ifsh democrats, though, were urging action, saying that china single handedly needs to be punished dumping into the United States. The and that you will see something in the very near future the commerce secretary, who is leading this investigation said that you can put tariffs on two or three countries, but not actually have a blanket tariff that hits every single country or that the president led him to praise so well see where this leads. The president has until april to make a decision, but congress is trying to make a case for and against putting those tariffs in place. Guys, back to you. Kayla tausche, white house, thank you. Apple has the big Shareholder Meeting out west tim cook taking questions from the shareholders the stock pulling itself recently out of correction territory, however apple still rarely underperforming the overall market this year the votes are in and went as planned. Also executive compensation also approved, brian, and two shareholder proposals not approved, as the board recommended. Tim cook also on hand here today, fielding questions from shareholders i want to bring you a bit of color about what cook was telling his shareholders touched immediately on the iphone x, that was the standard by which other phones will be measured he was pleased, and noted it was the top selling smartphone, the other products, remember, they break out units or revenue for the he said if you look at wearables, that would include air pods saying its the sigh of a fortune could be telling his stockholders, that goes to the confidence in apples future did stuff on m a a bit, saying it acquired about 19 companies, that hes on the outlook for other bride companies. A big day out west. What is an investor to do with shares of apple, or maybe you step in abuy more . As well as hes managing walt, what do you think . Do we buy more sell them if we got them theyre still growing top line revenue 10 , maybe 15 this year so you get true organic growth, it takes that, and the share reperform with another so thats a very high grout company. Thats trading at 15, 16 multiple based on whatever earnings estimates you want to look at, especially since theyre growing when upgraded rates are at historical these things trough out. Theyve been going back in the last couple years. Why arent they getting more respect its been nothing extort, but the last couple weeks and months its been humdrum. Why do you think the market is not buying in more. Its results ver expectations analysts are talking about the supercycle, im not sure why they keep drive that word home you had risen estimates that for some analysts were 80 billion for the quarter, so they had to be tempered in for a more realistic number, which some may say is a disappointment, but thats 15 growth year over year, so i think there was just some analysts maybe got overboard in the revenue expectation, hoping for a super cycle, when they should have been predicting what would have been very strong growth, and then go in and see what products have been there for a more typical upgrade cycle. What is this Company Likely to do with all the new capital that its going to bring back, with the capital it has, and is that a reason to buy the stock yeah, i think from the capital point of view, they have three options. M a, and more buybacks we think the base of m a will probably remain similar, as they go for Smaller Companies were not betting on any big m a, but that could be a big changer for them theres something that makes sense that you look at it could very well be on the services side. Yeah, that could make sense, but it cannot be too far away. So you sort of set that one on the side table. A dividend increase, and a stock buyback. You expect those two to happen and are those two things reasons to buy we expect both of them to happen we do not expect a onetime different, we expect them to increase different at a faster pace and a lot more buyback, but we do not think thats the reason to buy the stock. We think thats priced in, as we have seen with many other companies, we dont think the stock would go up. We think at this point what we agree with, yes, expectations were high, yes, there was no super cycle, but this is a company more for cyclical, right now its growing, because this product cycle, but we could well get into a period of revenue declines for them. Its an iphone driven company, and we dont think its tempered by the stock. Thank you both. Were going to leave it there. The invest firm now facing a lawsuit, accusing it of sexual discrimination and 1 trail wrong is the new estimate of the cost of the Opioid Crisis. Those stories and more, after the break. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. 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. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Well, just as he begins to make his dumbback, the Investment Firm return by steven cohen has been slapped with a lawsuit claiming discrimination against women. Discrimination, unequal pay, retaliation, those are three of the main allegations against steven cohen, and the firms president Douglas Haines the suit details a toxic environment, and events where executives say things like no girls allowed. The complainant is a disms. Bonner is seeking an order from point 72 engaging in further unlawful conduct, as well as undisclosed damages. In responsible to the lawsuit, point72 wrote in a statement the firm emphatically denies the allegations and will defend itself in a more appropriate ven you than the media we assistant by our record of hiring and developing women. Cnbc was unable to independently verify the allegations in the lawsuit, thereon cohen had been banned from managing outside capital. , and 8 billion, on january 1st of this year form the u. S. Attorneys ban had been lifted, quietly raising a few billion, sources say. She is still working there now . She is still working there now. I wonder what thats like. I do, too first day back after this lawsuit hits, absolutely where too from here . The standard progress in court they are looking for a trial, which is unique. As you know in these situation, these things usually get settled out of court, nobody ever hears or seeing. Even before it gets filed before so its interesting that we see a lawsuit, and at least according to the allegations late out in the complaint. Got it. Less le, thank you. The shocking scope of the Opioid Crisis continues to gro well have more on that. Wait until you here what the president s budget director set about the president s budget he not what you think. Weavit coming up on power lunch. We took legendary, and made it liberating. We took safe, and made it daring. We took intelligent, and made it utterly irresistible. We took the most advanced eclass ever, and made the most exciting eclass ever. The 2018 eclass coupe and sedan. Lease the e300 sedan for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Everyone has a thing. That binge watch over the weekend thing. More checkingin or checking out things. That tripledouble thing doing it yourself or tagging a friend thing. More revolutions in the making thing. That play like a girl thing. That fourlegged friends thing. At t gives you more for your thing. More entertainment, internet, and unlimited plans. More for your thing. Yeah, thats our thing. 1 trillion, the estimated costs of the Opioid Crisis, according do a new report. Meg tirrell has more on the story that unfortunately just keeps on growing. It really does. The trillion dollar estimate is total cost from the Opioid Crisis thats according to an analysis from, and those costs could accelebrate the report warns if the epidemic porzs others the Opioid Epidemic has ravaged the United States, estimated over 62,000 deaths its the biggest contributor to cost in todays analysis with costs of health care, criminal justice and family assistance also contributing. The 1 trail wrong to 2017 is a staggering number. You may advisers, which estimated the cost of the Opioid Epidemic as even higher left in to 15 alone, the vast jersey coming from fatality costs, so the costs are stagger, the numbers are stagger. And they higher estimates have been estimates what from the death are, but of course folks who are living with that a. A few months ago, my parents live in rural virginia, a guy died at a stop plight in his car. 2 00 in the afternoon. You look at the cost of this, of the obesity epidemic at well, it bothers me in a lot of ways. Im sorry. Were literally the economic cost, societal costs is so massive, its almost incomprehensible. You talk about the overdose in the car, when we were doing our series, we are talking about the reversal drug, and we heard stories from people who actually saved lives of people who overdosed in cars, administering the drug there thank you, meg. Thanks, guys. Segue back to the markets here after being down 180 points, take a look at the major averages right here. Middle of the session, trying to move higher. The dow is in positive territory, by almost 20 point. The highs of the session we have seen some wild swings in these markets. Now were hearing there may be a new culprit to blame for the sell off plus how much does the stock market really affect the oravell economy. We discuss, after this feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. In the 2018 lexus es and es hybrid. Lease the 2018 es 350 for 339 a month for 36 months. Experience amazing at your lexus dealer. But prevagen helps your brain with an ingredient experience amazing originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Hello, everyone. Im sue herera in a tweet, President Trump warning that its now or never when it comes to extending protections for young immigrants who have stayed in this country illegally. The president s plan would pave a past to citizenship for 1. 8 billion dreamers in exchange for a border wall. Mitch mcconnell is supporting that proposal. This proposal has my support, and during this week, a fair debate, i believe it deserves support of every senator who is ready to move beyond making points and actually making official have pushed back the day when it might have to turn off most of the water taps because of a drought the new date june 4th. Thats because residents have been saving more water in response to authorities appeals. Prince harry and Meghan Markle visiting edinborough, greeting wellwitchers wellwishers ty, back to you. Sioux, thank you very much lets look at the markets right now. The do you at least have turned into the green it was down about 180 points, all three of the major indexes are actually green right now leading the do you, those are your top winners at this hour. The recent wiped out nearly 2 trillion of investor value how much does the stock Market Impact the broader economy its a great question. Steve liesman has answers. Economists are starting to think about what lower stop prices could meep to the commission, and some are shaving for the wealth effect. Its good that these are individual dollars its a tendency to buy more, save less when stock and real estate values rise, but estimates for the people spend somewhere between three and phi cents more now with the market off the highs and the outlook for stocks not quite as rosy as its been so the wealth effect shifts from positive to perhaps neutral. You had see the lets come back here and look at before 2000 look at the high stock prices, and watch what happens to the wealth effect. It takes a step down and look again here, back before the great recession. Wealth effect ships down, stays down then you have this pertain of extent the symptom gain, and then a low theres going to be offsets that are important. Make mo jobs bigger paychecks, but americans may think twice about that fancy vacation, or maybe that guitar they didnt need, because their portfolio was looking robust i dont know who that could be. But i play it so well so the market focusing on the spending binge in washington today one of the President Trumps biggest advisers Mick Mulvaney is famous or antigovernment spending, he would have had doubt about the massive budget if he was still in congress. As a member of congress representing the Fifth District of south carolina, i probably would have found shortcomings, but im the direct off of the office of management budget. My job is to try to fund the president s priorities, which is exactly what we did. So so much for being a definite at this time hawk bring in Rebecca Patterson with republicans like this, who needs democrats . Why hes totally going against they hes no question about that the trump budget is not so bad, but it has to incorporate the twoyear deal, which is very bad. Broke the caps, the sequester and all the rest of it however, theres a lot of tough stuff that probably will not pass i hope they can get i hope they can theyre going to tighten eligibility requirements i wouldnt say nothing i would say mick is from south carolina, hes a tough guy and gave a very clever answer. Rick santelli is going to be so busy with the next couple years, and thats what Interest Rates have been at the times you that the market is worried about. The market doesnt care until suddenly it does, so basically the amount of borrows the is effectively doubling its a sea change in the economic regime we are in. What if china wants to divers y diversify, who is buying these bonds and at what yield . History lesson, mr. Kudlow. Take me back to the reagan years. Not a nonwhat happened to deficits deficits went up. Heres my take. I dont think deficits have much impact as all. Point number two the deficit will be for 2019, i think thats the right over ten years or so, going to average about 3. 5 . Much lower than it will reagan years we ran 6 , so i wouldnt panic over that one way to look at that some people would disagree, but youre investing in the economy. Its an enormous investment, i would make that point, and the military investment is also so in that sense, growth is going to rise, and i think over im the whole deficit will look much, much better. If Interest Rates are going up and we have modestly rising inflation, i think you have higher rates, but if Interest Rates because supply is going up and there are jitters, or at what yield the buyers come in, i am less confident the rising yieldsly kumbaya for the market. I think the rates will go up. Lets say 3 to 4 economy, real Interest Rates will go up, at least 100 basis points. I would put the range at 3. 5 to 4. On the ten . On the tenyear i dont know the timing its not the left, but the speed of gain. I dont know that, i cant pretty that. Very hard, for someone with my view to say the correction is over, because i think a lot of it was based in the jump on market rates weve said this, i dont know if anyone paid taken, weve talked about this for quite some time its a natural phenomenon. You say that, but the last two recessions, the definite hit as worsened, so no end. Even in 2001. I love you i love you too. But of all the measures, one of them is not the deficit but the budget deficit goes hand in hand, which gives us a weaker dollar, which will push are Interest Rates faster. I would reverse that logic. I think what will happen over time is the trade deficit will get larger while the budget deficit gets narrower. I dont think theres a link between trade deficits we had this argument during the reagan year, it never worked its not okay i havent had time to see the details. I will i want to see whats troubling Mick Mulvaney. They didnt get the budget from last year. I dont think theyre going to get this budget either, so you need larger republican jersey to get that the president is saying is a couple hundred billion, you know, they put in 20 billion last year for the twoyear window, or this year for the twoyear window. I just think the numbers and the whole has to be flushed out. He wont go to reciprocal conditions thats just my take. Thank you both. Lets go to a guy who probably has some thoughts about this, i wonder thats a great discussion, of course supply and demand will be interwoven, and maybe more complicated way. Look as an intraday of twos, its up four basis points. When it was steepening, when markets were crazy, finally dollar index dollar yen, as you see, weakest for the dollar, stronger for the yen since november 2016. Brian, back to you. Rick, thank you well, the blowup and the short volt tilt blamed a lot for the crazy Market Action we have seen recently perhaps somebody more sinister was at work. Were talking about the potential market manipulation of the vix itself, when power lunch returns 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 today, the new new york is sparking innovation. 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Get ready, because were helping leading companies see it and see it throughwith digital. 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. You said something there you said said broken market when people hear that, who dont understand the market as well as maybe you do, i can imagine that makes them anxious i dont want to be in a broken market, what is broken you just talked about it before, up 300 points, you see where thats today its a sign of a broken market why . Seven year of hubris and complacency has been manifesting itself. Thats guy adami, calling this market, quote, broken its a scary phrase for any investor a new report adding to that fear, suggesting that certain things, the vix, were rigged through his lawyer, an alleged whistleblower is the cause of much of the recent volatility and poses a risks. The cboe releasing a we take our this her, the one sent, is repleat with inaccurate statement. And volatility etps among other things, as a result of these others we feel the lack credibility, end quote. Do you believe that parts of the market are indeed broken yes, but not for the sense that listen, i cant speak if the vix was rigged or manipulated. Whistleblower or not, im sure the stories will come out. The problem with that is its emboldened traders to be short vol. I think thats all coming home to roost now my point is seven years of hubris and complacency cannot be fixed if a week of unwind. Thats why i submit youll continue to see the moves were seeing and i think the market is broke. Weve guests on this fine network, and im not going to name anybody, because i appreciate all the guests, who have effectively said things like stocks go down. Stocks dont go down 1,000 points in three hours. Three days in a row. They did during the flash crash a few years ago, but certainly what we saw here last week was not run of the mill things go down stuff, was it we had a case where you had a trigger with a wage component, which in and of itself seasonal enough to send the market moving, and you guys talk about a broken market, but i think what youre saying, guy, ultimately markets were relying on Central Banks to a point which they stopped functioning the way they stopped functioning is back to the reality. Would the market moved slower it dominated by humans nor machines i cant say to that. The same thing might have happened. Maybe it would have been slower there are different a different quality of product, and i dont mean that in terms of good or bat just different products. A lot of people dont understand them the interconnecteds in between product a, product business. I dont think we need to explain what risk parity accounts are how much of that has been unwound, and while i think if you look at ctas, they had their worth week ever, extreme positioning, and some of that has been unwound why were people there in you talk about a broken market, you couldnt look at the Treasury Curve and really know what because the Federal Reserve and the Central Banks of the world had smothered it over. You dont know what the market is telling you quickly, to tys point, ill say this the same machines have been taking the market higher now for if not months, for years, and we dont talk about it because the market is going higher we only use them as a culprit on the way down theyre equally villainous, if thats a word, on the way up it is, yes. I disagree. Why do you disagree 100 with what you just said. I disagree 101 . Why do we only associate the word panic when we talk about selling . Couldnt we i agree with you on that point. Youre making two separate points i feel like im arguing two georgetown guys. Heres why who would i be in st. Elmos fire markets in tour moil could also be when the markets go up 1,000 points in a day. It doesnt have to just be down. However, if you and tyler and michelle and myself are just putting a couple hundred bucks, whatever it is a month, into our 401 k , thats not the machines driving stocks up. Stocks go up 75 of the time thats where theyre an upward bias the reason i disagree is computers dont buy necessarily because they need a new source of asset or money to do that but when you have a product like the vix, an option, a future on the option, and then a leveraged product on the future option, no one probably knows how that Rube Goldberg contraption is going to unwind really, how the market responded is how the Retail Investor responds from there isnt that what this is about, credibility . If you think about the Retail Investor, we had record inflows, 40 billion through etfs in passive money. On some level, passive is the whole story here, guy. People assume its going up and up and up. And thats a mindset that needs to change. In this sense, i think this is healthy. All right, guys thank you. We solved it we did . Yeah, guy and tim lets talk st. Elmos fire in the next segment go play your saex phone coming up, guy is sticking around for street talk well give you analyst calls guy will wgh iein with his trusted and valued opinion stay with us mr. Stevens . This is your new name. This is your new house. And a perfectly inconspicuous suv. You must become invisible. [hero] ill take my chances. It is time for a very special street talk. The Analyst Recommendations of the stocks you need to know about. This is great because we have guy adami who can offer up his thing right away first stock, hey, i hope they gave you these names ahead of time paycom software, Key Bank Capital markets upgrading heading into tax season. A High Quality Service company, like the direct sales strategy, also a best in class efficiency model. 105 target is 24 up. Well 20 upside down i agree with that the margins are the story of 84 Gross Margins here the stock probably has a 21 Earnings Growth. It makes it a tad expensive, but then you take this into consideration, brian it has about a 22 Short Interest, and you have seen what happens to stocks with significant Short Interest it winds up being squeezes in the names and they ratchet higher on a benign take, i like this a lot. Commercials every other break saying dump adp and come with them stock two is a company i never heard of, univar, a chicago based specialty chemical company. Shea say theres a lot of concern over a rather sudden ceo change, but they dont expect any change in the company performance. Analysts think theres no change in earnings expectations so he takes his rating from hold to buy with a 32 target on univar. They priced it 10 million shares secondary through Goldman Sachs in december right around this price you look at this company, you have close to 40 Earnings Growth in this name. As you said, upgraded, trades at 19 times forward earnings. Theyre probably best in breed in what they do. The small segment that theyre in so yes, thuis session of the ceo caused some consternation as did the secondary, but the stock trades pretty well there you buy it against the 10 million share secondary price. You have a future in this youre pretty good in what everything. Thank you coming up on the second hour of power, the latest from apples Shareholder Meeting. A closer look, too, at what is driving the recent volatility in the market its the russians. The russians are behind it what if the government ran its own version of blue ro liring food to the poor . All those stories and more coming your way next on power lunch. nadia white the moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. dane chauvel sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. tom villa we took our world class network, and we developed devices to track environmental conditions. This device allows people to understand whats happening with the location, but also if its too hot, if its too cold, if its been dropped. Its completely unique. dennis woloshuck if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Who knew a tiny sensor could help keep the food chain safe . Welcome back, everybody. Second hour of power about to kick off lets tell you whats on the menu hypermarkets have we hit a tradeable bottom or is it too early to say that the market has cleared out all of that selling . Well debate that. You ask, we answer. Going to take your questions our panel of experts on the markets and individual stocks. You can send us an email at powerlunch cnbc. Com. Maybe youll see it on the screen wild proposal from the administration would replace a chunk of food stamp benefits with a blue apron style Food Delivery Service we have the details, as power lunch starts right now. Welcome to power lunch. Im michelle carusocabrera. Stocks were paring back today with the dow and s p lower now theyre positive on the session after hitting a low of 180 points the dow is higher by 50 points the s p is higher by nearly six and nasdaq higher by nearly 23 telecom and health care, they were the worst performing sectors. Lets see if thats still the case indeed, although they have come off the negative side, theyre still down for the S P Health Care sector. Walmart, caterpillar, jp morgan are leading the dow. United tech and home depot are your laggards. Some of your top movers, under armour, amerisource is up. Blue apron jumping on strong earnings, but its off the highs of the session brian. All right, for more on what has been driving the recent volatility and rapid recoveries, lets bring in mike santoli and bob pisani on the floor of the New York Stock Exchange. Guys, i dont know how you feel about this, mike it feels like every day we sort of peel back a layer of the onion a little bit people have conspiracy theories. Now you have this alleged, alleged vix manipulation concept, which the cboe denies do you see it getting more complicated or cleansing itself out . I dont know if its more complicated. I do think that most traders, most investors, have a sense of just not being clear if a lot of that activity, a lot of that noise has been cleared away yet. Whats interesting, its this little quiet rally we had in the last hour. Its almost as if bidders were holding back and saying, look, if this is calm for three hours, if nothing comes out as a bolt from the blue, maybe it makes sense to start bidding because the market has finally today stayed in a relatively narrow range. Im not sure were going to get too much clarity on exactly what happened and whether structurally, there are issues, but to me, the focus is does this market hang around in this range and heal itself, or do we get buffeted by the other forces one thing that is interesting, this was an amazingly big day two weeks ago and now its kind of quiet volume is quieter. Let me talk about, you were referencing this alleged man manipulati manipulation, the vix story. I talked to this whistleblower, saying the vix could be numipulated because you can put in way out of the money bids on puts that would influence the vix and essentially drive it up. Its a very interesting idea my overall sense is that certainly did not cause the crash, and he says it does not cause the crash. Heres a simple way to deal with this i would like to see the s. E. C. And the cftc look into the bids and offers on the day before and the day of the settlement in vix futures. Thats really what were talking about. If theres some attempt to drive the prices up or down, strangely, that should be fairly obvious. I think its worth an investigation, but im not willing to say, and hes not either, that this is what caused the crash. All right, guys thank you very much. Bob and mike so the dow and s p now on pace for their worst month since august of 2015, and new reports, we were just talking about them, claiming that manipulated volatility products might have contributed to last weeks selloff. Should investors be concerned . Eddy perken is chief Equity Investment officer and former cio of Goldman Sachs assett management you heard what bob pisani was saying what do you think about all that and to what degree did it affect the market and should the average investor at home pay that much attention to it . I think not i think its probably much ado about nothing. Well find out the facts in the coming days. The volatility products to me are the tip of the iceberg whats really going on is there are these minimum vol and risk parity funds that are institutional products that are beneath the surface of the iceberg, if you like, beneath the surface of the water and theres hundreds of billions of dollars invested in those types of products. The most visible part of the market we can focus on is these short vol products, but those are the retail products. The institutional money behind those similar strategies is whats really driving the market im going to try to explain risk parity simply the average investor thinks im going to put some money in stocks and some in bonds big hedge funds, they dont often think like that. They try to define every asset class through how volatile it is when volatility goes up, they reduce their exposure to the Asset Classes they think have too much volatility after the increase that would explain why we would have selling in stocks it becomes a selffulfilling prophecy where the more volatility there is, the more you have to sell that drives further volatility if we go back a week ago monday when we had the big selloff, it was in my opinion, thats what was going on in the market, and the fact of the matter is, theres hundreds of billions of dollars of money behind these types of strategies. Thats right, and youre hitting a button because its not michelle sitting at a dev going, hmm, sell a couple stocks so we can balance out our risk parity. Its Software Programs that are just doing what theyre told to do nobody can i dont even know if anybody can stop it at the time people draw the parallel with october 1997 with portfolio insurance. Its not exactly the same. In 87, it was selling because the market was down. Here, its selling because volatility has spiked. The computers are running the show, and theres not that much money that is price sensitive fundamentally based where theres an active decision maker, a human being saying im stepping in to buy do these products have a purpose other than providing a gambling vehicle i think the retail products, the ones that are getting the most attention, its debatable whether they have a real purpose. I think the risk parity hedge funds for a certain type of investor, for Pension Funds and Institutional Investors have a logic in the management of a portfolio. But too much money in the same trades. To some degree, individual investors are always told the same concept, right . Oh, look at that, what that stock is yielding. Yes, but what risk are you taking when you buy that stock oh, a treasury is all thats safe is it really theres risks embedded everywhere in theory, everybody is supposed to risk adjust their own port foaloes to the degree they can sleep at night, but this is that on steroids. Pursuing risks, targeting risks with such mathematical precision you overengineer the problem and create risk that wasnt there in the first place. Does this mean that rising Interest Rates werent the issue . Or are you saying that that was rising Interest Rates was the spark, and risk parity was the kindling i think that the right analogy. I would go back further and say high valuations are part of the kindling as well we started from very elevated valuation levels the markets had a nice run over a long period of time. We had very few pullbacks last year and primed for something to happen, exactly what if im a fund manager, and im sitting there watching my screens and all of a sudden apple is down a percent, now 2 , now 3 , now its down 4 , 5 what are you doing because your phone is lighting up with client calls what the hell is going on with the stock market yeah. How frustrating is that from an active managers perspective, and what are you telling your clients when the value of their fund goes down 5 in a day from nothing you have done . Yeah, i think the funds have to be purchased for the right reason in the first place. And Financial Advisers who market mutual funds need to have a relationship with their client where they understand the risk tolerance of their client and they have them in these funds, in equity mutual funds for the long term. Its not a trading vehicle its a buy and hold strategy if you do that when stock prices fall for no good reason, thats the buying tunltd. Maybe more importantly, what you tell your clients is what you tell your Fund Managers internally what do you tell them some guy that no one ever met from i. T. Runs down the hallway, the computers are going crazy. Thanks, get out of there not sim seymour. Its we have a daily morning meeting. I want you to answer in the same voice he just used. Ill try. Normally, when we get a selloff like this, theres dislocation its not just the market going down, but certain things are going down a lot more than others that becomes a real opportunity because then you say, look, stock x is down 15 . The market is down 8 . That makes no sense. We can point to the fact its a technical glitch, technical selloff, and were going to buy more in this particular selloff over the last two weeks, we didnt see a lot of indiscriminate selling. The whole broad market sold off sort of equally. A lot of futuresled selling, very technical there werent any specific securities that i saw how does that make you feel when this program is selling the s p 500 futures en masse, which is bringing everything down, so it doesnt matter if youre a good or bad company, youre dumped the same way. Passive investing, is there a risk to passive investing . I think there is. And i think when you have too much money thats blindly buying the market or blindly selling the market, you get these sort of events. Passive is not your plain vanilla s p 500 fund, the one jack vogel told us about all these years. Its also become sector etfs and leverage etfs. These are still categorized as passive instruments, but theyre very different animals very different. They have slivered the baloney about as thin as it can get. Thats right. He knew he knew. Great to have you on. Good to be with you on the agenda at the apple where theyre slicing the apple there, meeting board nominees, executive compensation on the agenda there. Future of the iphone on the agenda tim cook downplays a suggestion the Company Might issue a special dividend to shareholders with some of its cash war chest. Apple shares are a little higher right now, by about. 8 . But down about 4 year todate. Here now, two analysts who remain firmly bullish on the stock. Dan has a price target of 205, and citis jim at 200 welcome to both of you were going to have a big disagreement because you think the stock is going higher. Whats going to take it there, jim, and how soon . Well, we actually think in the near term, the biggest catalysts are going to be when they report their march quarter earnings which will be in april, and announce a big stock buyback in return of that 163 billion of excess cash and we think thats goegto come in the form of a stock buyback as well as an increased dividend this all in the wake of right now, people are kind of having a negative slant on the iphone sales, which actually werent that bad than what we thought. We had a guest on last hour who i asked basically the same question to about the possibility of a buyback he said i think its sort of already anticipated in the stock price. You dont see it that way . No, we dont. And the reason why is the inbound calls we get from Institutional Investors are how much do we think it would be and our answer, we believe 163 billion stock buyback using only 50 of it, so not all of it, but 50 could equate to about 10 of the market cap and 10 is a big number. So we dont think its all priced in. All right, dan, over to you there has been a lot of nitp k nitpicking on apple it had a bad last ten days along with the rest of the market. Nitpicking in the most recent Earnings Report about the units that were sold, but the average selling price was up, and this was a company that was basically selling product at a rate of 1 billion a day. That sounds pretty good. Yeah, i mean, look, this is a point where you so far put a bplus, aminus on the iphone x product cycle. Asp toward 800, thats sort of been the golden goose right here i do think the street got a little ahead of its skis you have to look at the overall sort of opportunity. You have 350 million iphones coming out for an upgrade in the next 12 to 18 months if its one phone, if its three phones, if its iphone x, we think three more phones come out between now and september. Thats really the opportunity here combined with the buyback that could rival call it 300 billion. I think this is a stock that gets back to 180, 200, and i think now its a hand Holding Period a proveme period that ultimately from march to june to september, youll start to see those numbers move higher on the bottom line as well as the cash, which we do not believe is sort of fully priced in, as many skeptics will say its really more to pay down debt. We continue to think more the former dan, youre not worried about this new at t announcement about two iphone xs for the price of one . Whats that going to do to average selling price and does that concern you about the sellthrough rate . Right ow, you feel comfortable in general about asps, when you look at volume, especially well call it 240 Million Units that they really need to hit that for the year, they need to stimulate demand. And ultimately, whether its some of their promotional activity, whether its three phones, whether its a midpriced phone, especially with all focus on china, china at this point is really the fuel in the engine here and i think theyre going to do a lot of things behind the scenes in terms of stimulating demand, multiple product cycles, and what we see here with at t, this is really what they need to do its about the 350 million iphones up for upgrade over the next 12 to 18 months to get you dont care theyre cutting the price is the point thats factored in. Jim, sort of a similar question to you. Could apple make more money and sell more units if they charged a little less per phone . Or is that the dumbest thing you ever heard of . Well, apple really has established itself as a premium brand, as a very much aspirational product agreed. And high quality. I do not think they will sacrifice quality for lowering price. Meaning putting in plastic parts or cheaper components that break more easily or, you know, if you fall into the swimming pool, they short out we think theyre very much focused on highquality products if they do have older products or products at a lower price point, say to go into china or india, those are probably the older models that maybe people used here in north america that make their way to more developing markets we think apple is going to stick with the premium product set thank you very much, dan, jim. Appreciate it. All right, just a note on the overall markets. Another fairly volatile day. The dow in a 280point range right now, sort of a little on the low end of splitting the difference with the dow under 100 points caterpillar your best performer. United technologies and ge are your worst ge down another percent today. Ge is now down 23 in three months more on deck one beenficiary of the recent volatility could be the big banks. Plus, one of wall streets richest and most well known hedge Fund Managers sued for allegedly creating a hostile Work Environment for women and if you have a question about these big market moves, dont worry. Send it over to us or tweet lanerrlch wel sw some with tim and guy coming up. A lot more to do stick around slap on some cologne im 85 and i wanna go home just got a job as a lifeguard in savannah im 85 and i wanna go home dropping sick beats, they call me dj nana 85 and i wanna go dont get mad. Get e trade, kiddo. Mom anits not theirs. Car. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. Stocks are in recovery mode. All major indices up more than 4 since fridays low. All 11 sectors have bounced back to some degree from friday which ones have done the best . Technology is leading the bounceback, as it led the way last year. That group has gained 6 since its friday lows. Consumer discretionary right behind it with a gain of more than 5. 5 . Financials also, materials and industrials, all up more than 5 since those february 9th lows. Well, as michelle just mentioned, financials are mounting a bit of a comeback the question is it poised for a real breakout in a world of higher rates lets bring in jason goldberg, manager director and Senior Analyst at barclays. Is it as simple as higher rates are good for financials so buy the banks . Thats certainly part of the thesis you have seen the fed back up last year. We expect the fed to further hike this year this will be the third Consecutive Year we think of the Market Expansion for the group you havent seen that 6 the 1970s. So that coupled with we think continued loan growth, credit quality, positive operating leverage and expense controls aided by technology and Retail Branch reduction as well as a positive capital returns story coupled with the prospect of regulatory deregulation make this group attractive to us. What about the return of volatility for some of these firms that have trading desks, it must add to revenue for the biggest banks, you have seen very stable trading revenues over the past several years amid very low volatility this year, youre really seeing volatility increase across Asset Classes. Equities gets a lot of play, but you get increases in Foreign Exchange volatility, and we expect that to aid trading revenues in the near term. What about increased dividends . For so long, we talked about whether or not the Federal Reserve was going to allow them to pay investors, there was such a tight leash there. Have we gotten all of that or do we expect more we do expect more you have seen payout ratios increase each of the last six years. A week or two ago, the fed put up a construct for the stress test with the banks submitting in april and hear back in june we look at our coverage, the medium bank can increase its dividend around 30 and increase the Share Buyback program by another 30 plus the group has a lot of excess capital. You know, theyre going to make a lot more earnings this year aided by lower tax rates and we think theyre going to rurp a decent amount back to shareholders explain that. Yeah, certainly, clearly wells fargo, i did a lot of things wrong in the past, you know, as we look ahead we think they have the ability to manage within that asset cap that they put on them, relatively well. So we kind of look to them to downsize the Balance Sheet in the first part of this year and grow into the back half of the year coupled with keeping a tight lid on expenses and buy back a fair amount of stock. While it may not be the best company at the moment, it doesnt mean its not an attractive stock jason, thank you. Appreciate it. Steve cohens Asset Management under fire for allegedly creating a hosal workplace for women. Plus, well answer your questions about your money later in the broadcast email us at power lunch cnbc. Com or tweet at us powerlunch there you see it is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Lets get to Courtney Reagan for a market flash billionaire investor mark cuban telling cnbc the recent volatile market swings were a big buying opportunity he put on the vix, not a huge position, but enough to be interesting. Also adding shares of financial to his portfolio, quote, boss they do High Frequency trading and make money off volatility. His two biggest positions are amazon and Netflix Netflix he bought at 50 a share. Still holds it and lastly, regarding the snapchat upgrade that everyone is complaining about, cuban thinks it will be a net asset and he would consider buying shares on a future dip thank you for the details interesting to see what hes doing. Historic night in south korea as 17yearold chloe kim becomes the youngest female medalist in olympic snowboarding history were going to hear about the win and play a little of would you rather power lunch is back in two you cant predict the market, but through good times and bad at t. Rowe price weve helped our investors stay confident for over 80 years. Call us or your advisor. T. Rowe price. Invest with confidence. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. Weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right financial advisor, life can be brilliant. I know when i hand them the its gonna be scary. Car but i also know that were gonna have usaa insurance for both my boys. Its something that theyre not even gonna have to think of. Its just gonna be in the family. Were the tenneys and were usaa members for life. 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. Hello, everyone. Im sue herera heres your cnbc news update at this hour. Fbi director Christopher Wray providing new details that call into question the white house timeline leading up to the departure of former staff secretary rob porter he told the Senate Intelligence committee the bureau delivered to the white house a partial report on porters background in march. Months earlier than the white house has admitted the fbi submitted a partial report on the investigation in question in march. We administratively closed the file in january. In miami, coast guard officials offloading a massive amount of cocaine seized in several operations with the street value of nearly 200 million crew members from the cutter hamilton stopping at Port Everglades this morning, dropping off nearly 7 tons of drugs. On a much lighter note, whats next for the popular card game uno how about dos. Theyre launching it next month. It has similar rules except the players make two piles of cards and can throw two cards at a time instead of just one for uno. That is the news update this hour ty, back to you. All right, uno, dos tres. Michelle, straighten him out isnt that how we did it . One, two, three, 14 just go all the way lets get a check i like those. Theyre the big ones stocks are bouncing back after being down 180 points or thereabouts. Lets take a look at where they stand. There we go, up 48 for the dow industrials. A little less than a fifth of a percent. The s p up about the same amount nasdaq up 27 Consumer Discretionary and financials, they are your best performing sectors energy, utilities, the laggards. The oil market closing for the day. Lets find out what the price is as they close out. Good afternoon to you crude closing a little lower than the frat line under 60 a barrel the iea was out with their monthly report questioning if Global Demand would be Strong Enough to absorb excess supply yesterday, opec says it sees a surge in the nonoil supply there was also a note circulating raising questions about the speed of the rebalance. Crude saw a session lof of 58. 39 but well under that 60 mark, back to you. Got it, thank you so much so a female executive at Stephen Cohens firm point 72 filed a lawsuit accusing the firm as operating as a sexist boys club where women are treated inferior and paid considerably less than their male counterparts. Details from leslie and kate of the new york times, but used to work here at cnbc hey, kate. Hey, michelle great to be back you spent a lot of time at that office, havent you what do you know, and do you know this woman . I dont know this woman, i have not met her shes still working there, which has to be an interesting day for her today. Look, i had certainly heard rumors over the years about it being a pretty rough and tumble environment as it pertains to women. You cant miss the fact there are not a lot of visible women in the executive ranks i remember a little over a year ago, i did a piece on their talent and training efforts. The woman who runathize program was one of very few executives at the senior level. Those were clearly the case. In terms of the vulgarity and the disrespectful treatment, again, i heard rumors but never was able to stand them up. But theres clearly some pretty devastating stuff in here, including the before mentioned vulgarity that was on the president of the firms white board, allegedly, for weekst a time, and women had to see this every time they went in there. They love that word, i dont know what it is. It comes in scandals all the time a word that created a pink hat fashion trend. I think our audience knows what were talking about. Things like that and the more dollars and cents questions of the pay disparity that this lawsuit describes. Its pretty well crafted now well see what the response is, of course, these are only allegations. This plaintiff kind of goes through the line of other male colleagues and contemporaries and says, in this case, i made 62 cents to this mans 1. 45 cents to this mans dollar, and so on. I dont know where they got the comp information, but it reads pretty devastatingly you read through the lawsuit. You thought it was so detailed youre assuming its pretty well documented thats the assumption in reading it she does sit within the talent arm of the firm, so she is someone who would be potentially in the position to obtain information about discrimination, about pay gaps it says in the complaint, actually, that she sought information about diversity and demographic breakdowns within the firm, which she obtained after some reticence on the part of the firm, but was told not to circulate those things widely, and then she was denied access to pay gap information that she sought so i think the specific details in the case are on a more casebycase basis, but she says she knows of some scenarios where its as little as 33 cents on the dollar. You know whats interesting i mean, steve cohen here is one of the named defendants along with the firm and the president. But from what i have heard, even though hes sued individually, and hes responsible, as any ceo or owner is of the shop they manage, even if he doesnt partake in this behavior, he presumably count nnlss it, from what i told, he and his wife alex are actually pretty open and inviting toward having a more Diverse Workforce and promoting women. Its some of the new people, ironically, that they brought in after the criminal indictment a number of years ago and wanting to shake up management, who have actually created this hostile culture based on the lawsuit all right, so lets put aside the womans situation here neither of my male colleagues want to weigh in here. I was going to i was going to ask whether the assumption here, kate or leslie, is that this plaintiff has recordings or photographic evidence, as some in other cases of Sexual Harassment have had . Its unclear at this time exactly what she has in terms of evidence but its clear from the lawsuit and that public nature of the lawsuit, there are direct quotes in the lawsuit attributed to a lot of very highup executives at point 72. One would presume that she must have something to back that up, otherwise, it would be very risky. A lot of these things settle. You would assume when the pword is written for months at a time, its easy to take a picture. It is, but kate, you have been there what i was trying to do was structure what i know, and i know people who work there, at point 72, maybe the weirdest place in america to work and i was trying to sort of structure to leslies point, an idea of that concept versus the reality of being in a place which is, and you know this better than i do, built like a fortress steve cohen is so concerned about noise, hes removed the fans from the computers so theres no noise he keeps it at, what, 60 degrees. Everyone has to wear fleece. Hes got cameras on everybodys desk so he can yell at them directly immediately and he yells at them. I dont think he uses the cam anymore. It may be the most bizarre, weird place to work in america in some ways except bridgewater, maybe i and one of our producers did a shoot there a couple years ago, and it was such a weird experience in the sense that the floor absolutely was you could hear a pin dropping. Everybody was staring at us, as i was doing my broadcast you know, there was like no other conversation it was chilly, et cetera, et cetera i attributed that less to gender and more to the fact they had been so closed to the press and all outsiders for so many years. But youre right its a very sort of icy environment,literally and figuratively, people are very focused. So you know, its just interesting that this type of, like, rough and blatant behavior its a place sort of built on secrecy and suspicion. Right right i dont know about suspicion, but certainly by cohen is my point. Thats all hypervigilance, looking for an edge. Secrecy, yes i mean, absolutely youre right thank you, kate good to see you again. Thank you, leslie. Always great to have you too now, point 72, which you probably remember used to be s. A. C. Capital, did response to the allegations saying the firm emphatically denies these allegations, and will defend itself in a more appropriate venue than the media we stand by our record of hiring and developing women in a industry where women are historically underrepresented, the hundreds of women at point 72 are vital members of every part of our Organization End quote. Straight ahead, our own Carl Quintanilla sits down with a freshly minted gold medal winner, snowboarding chloe kim was she great last night or what plus, we answer your questions about the stocks that are moving the markets. Thats straight ahead on power lunch. 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. To grow your business with us in new york state, wow record time. S. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to power lunch. The olympics and carl reporting for us in pyeongchang, the Winter Olympics sitting down one of team usas latest crop of gold medalists and the youngest woman ever to win an olympic snowboarding medal, chloe kim. What a day of competition here in pyeongchang. For the Third Straight day, the u. S. Has brought home gold in a snowboarding event it was red gerard, and then jamie anderson, and today, chloe kim. 17 years old, in her olympic debut, bringing home the gold in the womens half pipe. Shes the youngest female olympic champion on a snow event ever we were lucky to get to talk to her earlier today. Where we of course gave her the old cnbc business rapid fire under armour or nike . Nike. Instagram or twitter . Instawitter ice cream or churros . Ice cream star wars or star trek . Star wars netflix or hulu hulu. Alexa or siri pass. Dogs or cats . Dogs. Olympics or xgames oh, pass. In and out or shake shack in and out. And spotify or pandora . Spotify great to talk to chloe kim. You know, the u. S. Has a chance to win its 100th winter olympic medal at these games we already have 99 most of them from speed skating, but also alpine ski, figure skating, and snowboard the u. S. Is number two in the world all time in gold, coming into these games norway is number one with 118, and events in which the u. S. Has never gotten gold, luge, curling, cross country, the biathlon, and the ski jump but of course, theres always tomorrow always these games quick look at the medal board, as our coverage here continues we look forward to a busy day five of the competition here on wednesday. Guys, back to you. All right thats Carl Quintanilla reporting. Between the young male snowboarding, what was his name . Red gerard and chloe kim, both 17. If they weigh 200 pounds between them, i would be surprised and she never stops eating. A tiny little thing, and he was 55, i think, and 115 pounds anyway, were going to look at curling action from yesterday . Were we . I could not look at this. Speaking of 200 pounds. Look at that, speaking of big guys that was a weak rock there oh, my god, you two this is sad and aged. All right, here we go well give you fuller more yes they use swiffer things how are you feeling today, tyler . A little stiff i cant stand up straight i am a model of fitness look at this. Its surprising i tell you. Did you groan when you saw me you made some noise. What was that, seymour im not sure. Lets keep moving. What do you got . You want to wrestle sumo . That wasnt even on the ice that was on a synthetic surface. You can put it in a bar much better if you had a couple adult beverages. We were sad. We were embarrassing were going to now answer some stock questions fast money traders seymour and adami are here first up, lets see, curt on email asks which is the better long term play, p g or bank of america . I tell you, if you look at p g, thats a stock that has done almost nothing for the last five years you cant get soap at bank of america. Then maybe we need to rethink this one, but ultimately, if i think what we have been doing at Procter Gamble for the last two years for sure, a lot of talk is about spinoffs and ultimately, its been a take, at least an activist call if you think about bank of america, not only do we know were in somewhere in the early stages of a fed hiking cycle, so net interest margins are going higher, but if you think about the ccar results and the tax deal, these guys are in a good position to grow eps through buybacks and ultimately, its a case where the guys are increasing their dividends when i look at the next couple years and catalyst for the stocks, i think the financials continue to ride the wave of deregulation, and eps growth in 2018 for these guys will be 2. 220 p g is not growing i steven asks what are your thoughts on nike i encourage you to go back to november 2015. Why do i mention that, tyler im glad you asked because on that day, the stock traded up to about 68 and failed look where we recently traded up to and seemingly have failed again. In my world, in tim world, its something we call a double top stock reports i think on march 22nd i think its expensive, close to 26 times forward earnings. Tim might disagree you had a couple analysts upgrade the stock. Both with 76 price targets. I would rather buy it on a breakout above 68 than to play stock market right here. Back to you. Jim on email, tim wants to know, are small regional banks, financials, way to go . If so, do you have ideas i tell you what, we just started talking about the dynamics for financials here, and the regionals if anything, are much more sensitive to an Interest Rate environment where they are seeing long growth, but the net interest margins for the regional banks is a much more rate sensitive story i would be careful theyre not all created equal, and theres also some mortgage sensitivity at the same time loan growth for these guys, citizens financial, regents financials are two names i like. If you believe the banks are running more efficiently, the regional banks are more efficient than the money center banks. John wants to know what is the story with nvidia . Why with such anger just wants to know. He does, and knrm here to tell you, jim cramer, he has a show here on this network. And he named his dog, i think, if you recall, nvidia. Talked about it all the time, for good reason. Heres the story, and tim talked about this on fast money a couple weeks ago 240 was a huge level they reported a ridiculously strong quarter, but the stock traded up to 240 and failed. Thats the level it failed at late last year whats my point . Personally, i dont think its all that expensive at current valuations but there are a lot of people who want to shoot against it on valuation, much like nike. At this point, if you have enjoyed the run, i would be taking money off the table and look for a pullback down to the low 200s when he says roll over nvidia, hes not talking about the dog. Ruff. Ed on twitter pfizer seems like a great value play, but doesnt seem to get the interest it deserves where are the buyers pfizer has been a good value play for the last five years also this is a stock thats been really trading in a sideways range, 30 to 35. Valuation, its attractive ultimately, this has been about a dividend play and a pipeline people have been waiting on. Value wise, its interesting they just had a pretty bangup Fourth Quarter they gave you guidance for 2018. The numbers look fine, the pipeline looks kn. Looks intereg to say that these guys are, i think, are going to do anything to break out of this range short term, i dont see it in a different rate environment, this is a dividend play that might not see as much safety and backstop valuation is fine. Thank you appreciate it. This is fun. Lickety split we love it. We move quickly here. Fast. Fast money. Lickety split money is the new name of the show. Catchy show no thank you. Sorry. Under armour jumping double digits after Strong International sales. And this is move really lasts. Its next on power lunch. The cnbc Trend Tracker live data board is brought to you by the cme group. Oh, and theres the closing bell. 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. And the nx hybrid with a class beating 31 mpg combined estimate. Lease the 2018 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. 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. Time for trading nation. Under armour surging 17 today one of the best days ever. We dont own it at all in vegas this is what they call a sucker bet despite the fact the stock is up 17 , which happened today, were steering clear news today was not really good it was just less bad you know, under armour is getting crushed in their own backyard sales are down 5 year over year here in north america due to weak demand. Their footwear business is really struggling. Theyre getting crushed by nike and adidas adidas is up 50 year over year in the United States it can be done under armour is generating lots of revenues at Dicks Sporting Goods and now Dicks Sporting Goods is competing with them at their own Stores Lululemon is gaining market share. And they have quite a bit of debt and interest costs are growing quickly. As a forward pe of 68, we wouldnt touch it with a tenfoot pole. We take that as no. Matt, are you as strongly against under armour as mark is . No, but i am as adamant saying i wouldnt want to short it either. Despite the problem with the fundamentals, on a technical basis, the stock has some potential here you look what happened just in the last year or so, every news the stock saw big gap down today it finally saw positive news not only did it rally, it gapped higher it kind of changed that trend. We saw what happened inspect january. The stock was trading down while the rest of the market was moving up. However, it made a higher low. Thats positive. This most recent rally has taken it up to its october highs and taken it to its trend line going back to 2015 and 200day moving average. The stock is very overbought on a shortterm basis but after a shortterm breather, if it can move higher and make a higher high, youre going those shorts are going to get hurt more than they were hurt today even though fundamentally it may not be the best story in the world, i wouldnt want to short it either because it could attract momentum money it hasnt seen in a couple years. Okay. There you go dont buy it but dont short it. Kind of ignore it is the conclusion from trading nation for more trading nation go to our website tradingnation. Cnbc. Com check please is next. Announcer and now the latest from tradingnation. Cnbc. Com and a word from our sponsor. Short selling can help you profit from a stocks decline. However, because it involves unlimited risk, you must have a plan first, screen for poorly rated stocks showing weakness versus the broad markets. Second, look for the stocks with the poorest technicals in that group. Finally, incorporate Risk Management techniques into your order to limit potential losses. Check please. Just for score keeping purposes, you wonder how far the dow has come back since the lows on february 9th. 4. 8 for the dow, a little over 5 for the nasdaq and a little under 4. 8 for the s p 500 not half of the way back from those losses in the middle of the turmoil last week, but a significant gain. Just crossing the wires a few moments ago, the white house says President Trump will donate his quarterly salary to department of transportation for infrastructure makes 400,000 a year 100,000. Might pave my street. Thanks for watching power lunch. Closing bell starting now hi, welcome to the closing bell, everybody im kelly evans at the New York Stock Exchange welcome back. Thank you im bill griffeth. The dow, lets look at it right now because it may change very quickly. Its positive for the moment rebounding from an earlier low when it was down 180 points. The dow swinging more than 280 points from bottom to top so far today. That used to be a lot. Well, yes but not lately its not. The volatility gauge is still high by recent

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