Space . No. Why if you look at the volumes and look at volatility, the volatility is low. They are working hand in hand together and you put up the quarters that they put up. Specifically, im talking about bank of america. Goldman sachs we know. Its the thick trading was a huge overhead. They put up incredible numbers. I think its a misread and that creates an opportunity in Goldman Sachs. I looked at this and was hoping to see the stock down. It was flat at the beginning of the trading session. I couldnt wait to see this thing start to drop and i think thats the opportunity. Weiss, you have Morgan Stanley to deliver their results. You feel better or worse about the financials today than you did go into earning season i feel the same i feel its going to take longer to work out. I look at a 2. 31 tenyear. 2. 26 today. Thats unbelievable. It is thats where im at going forward. I dont know who is going to be the first Major Commercial Bank to say, look, were separating the business because this is holding us back. I dont really care. Heres what i do know. Private equity has had a record raise of capital apollo, 23. 5 billion, kkr down there at 22 billion. It goes on and on and on those will lead to fees for the investment banks will those fees have moderated somewhat, it generate as lot of cash flow. You set the barlow for the transaction business and the daytoday business in goldmans commodity business im glad to have the bar set low. I think it goes lower. It doesnt dissuade me. Kevin, you tried to warn them you said, dont go into these stocks you said grown men are going to cry. I dont see any tears on the desk yet. Its tough to cry when youre in agreement on these things, right . Thats right. Go ahead. Not so fast my thesis was to get out of these for the next six months because there will be no alpha here i think the reality is slowly setting in looking at numbers, even b of a and goldman. These are regulated utilities. Single digits in our lifetimes weve never had such bad return on assets as weve seen here but if you really want private equity to save you in this sector, do they want to take money unregulated and put it into a utility that best opportunity is to have spreads widen . And when you see the tenyear handle get stuck, cant get past 2. 3, the best thing to happen of b of a is all of the cash sitting in savings accounts and if you could only get a decent margin spread so regulations are not changing Regulatory Environment remains the same loan books, not working, not growing. Why own any of these banks theres no reason at all. Jon najarian, you tell me this is hope versus reality. Hope says one thing, reality smacks you in the face and says why. The only one of these that i held was jpmorgan. Im not saying that its performing outstanding since the earnings it sold off like the rest of the financials have. However, i think its a very shortterm however i talked about the tbt, which is a double inverse for the bonds and people were in there buying puts like crazy when that was at 37 today it breaks through 36 they were buying very, very short term, though that means that the smart money was betting that the bonds see this come down as they have in yields, perhaps even we get down to 220s again. But then i think thats the bottom and we start working our way back up. So i think short term, in other words, kevin oleary is saying six months from now. Im thinking more six days to six weeks. Its a formality that jpm, for example, is going to go to a hundred. Where is it . 90 90, 91. Cramer may disagree with that, but maybe it goes back to 81st id say sold to that i think its a shortterm dip out of these and then we go back to work. Kevin, i wasnt saying that private equity is going to buy any of these banks there is so much capital in their funds that they are going to generate enormous fees for these banks. I just wanted to clarify that. Joe terranova, what is your opinion . You have nonexistent volatility, trading, no good why only stocks . Bank of america and Morgan Stanley, im going to continue to hold them i also have visas and the Financials Bank of america and Morgan Stanley have proven themselves to be slightly immune to the things that youre talking about right now. Im surprised that some of these financials are not down more than what were witnessing in the last couple of days, especially if you listen to what kevin is outlining the conditions to be for financials. So im not going to make a decision where u. S. Tenyear treasury is going to go. Scott, youre correct. Trading volumes are lousy right now and now its evidenced in Goldman Sachs. I disagree with pete hes usually right when it comes to when to buy and when to sell a name in the financials but i dont want to step into Goldman Sachs because i think theyre having difficulties in the management of their trading business in particular, fixed income. That was an ugly quarter for fixed income when you look at bank of america and they had a good quarter lastly, regional banks, i think thats the most sensitive to what you talk about with rates and thats the one area im not ready to step back into yet. Kevin, absence of a pickup in volatility, volume, rates, what gets you excited about these rates . If i really believe that Regulatory Reform was going to happen in the next six months, in other words, it would be a 2017 event, i would be reallocating back into this sector and that, to me, would be a fundamental structural change to move these entities away from the utilities that theyve become they are crushed by the fact that the convenance doesnt allow them to use their power to be the infrastructure for the economy that is growing. I really believe the reason were not growing at 3 gdp growth is because these banks, the infrastructure for every other sector are so highly overregulated that they cant do their good work and the fact that the state and municipal regulations stop Small Businesses from growing. Now its time to deliver if he can give us these two things, id be piling back into the weighting in the banks but this is not going to be a good place for your money for the next six months. You tell me if im wrong. These things moved up on a hope and a prayer hope of an agenda, hope on a reflation trade that rates were going to go up trading is doing what it is doing. Janet yellen was more dovish that people expected on capitol hill yep they also moved higher on hopes of capital allocations improving and youve got that. Thats the only thing thats happened but thats a positive. Thats untrue despite trading revenues being down and disappointing, they surprised the top and bottom line the other parts of the business are doing well they are putting less into loan reserves and they are also growing their loan book. You take a look at Morgan Stanley, 59 in the last year, thats the appreciation of that stock. Not dividends here jpmorgan, 42 . Goldman sachs, 37 apple and amazon cant even match that so, again, when kevin is saying maybe time for a rest and dont see these catalysts because of various parts of the trump agenda not passing, hes right however, were going to start working on Interest Rates again and hopefully we get rollback in those regs if we do, these go back to work. But theyve already outperformed like crazy. Im not dumping on the games. People have made money i think its fair to ask whether some of it got ahead of itself on things that people expected to happen maybe not in the manner that they thought. People are looking at this and they are focused on the Trading Volumes, even on bank of america, because moynihan said this was a stunning quarter. So when you look at the numbers of both companies, they absolutely destroyed what the expectations were. Year over year, they were very impressive theyve been buying back stock but thats part of the reality of where we trade. You look at these banks and if everybody is only going to focus on Trading Volume, then dont be enemies. But if you look at Something LikeGoldman Sachs focus on rates. If you look at Goldman Sachs and Trading Volume is down 40 and they put up a 4 clarz number, they are doing something right over there, arent they, judge . The stock is down 2. 5 today. Today who cares do you think Corporate Tax reform is getting done 2018. Because if it is, when you look at the major sectors, financials have the highest Corporate Tax sector. Were going to get somebody right now to help answer that very question. John harwood is live from washington, d. C. John, thats the question people are asking today not only through the prism of looking at bank stocks but in the apparent failure of health care as well tax reform, is it going to happen or not . It might happen but i wouldnt bet a lot of money on it if you do, expect something pretty narrow. The nature of the Republican Base right now and the way it is evolved towards those blue collar voters is not congenial to the kind of tax reform you guys are interested in hearing the republican leadership, ideologically, is in line with its wealthiest constituents, its donor on the need for less regulation and lower taxes increasingly on election day, republicans are dependent on those workingclass voters who have not gotten much from the tax plans that theyve been talking about and who think that the economic deck is stacked in favor of the rich. That was a problem for the Health Care Bill because while it provided big tax cuts for people at the top, it also took away subsidies for Health Insurance that they were relying on medicaid benefits that a lot of those workingclass voters were relying on they are facing the same split on taxes if they are going to have something that off sets like the border and justment tax, much harder. It sounds like youre saying if you thought health care was going to be tough, you havent seen nothing yet. If youre talking about a big, sweeping comprehensive reform of the individual corporate system, you havent seen nothing yet if youre talking about something narrower, like a Corporate Tax cut, yes, thats much more achievable but the big stuff gets harder and harder the bigger it gets. Are we off sides on expectations or no. The baseline case with every single investor that i talk to, large Single Family offices, the base case is trump gets a big nothing done on every Single Initiative hes considered a lame duck with the inability to move forward under this presidency. I dont think it will go up no matter what on the back of an improving economy. If you get the agenda through, you have that gravy on top of what is already a tasty meal. Absolutely right. Its been priced out if you get the narrow package that jon is talking about, thats good enough for financials, isnt it kevin, why not . No. You know, this idea of revenue neutral tax cuts is insane the whole idea of tax cuts is to allow more capital to remain in the economy in the hands of people as consumers and entrepreneurs as people that develop businesses keeping more money in the government keeps it in the meat grinder where its inefficient i estimate that onethird of every dollar that goes to the government gets completely wasted so the whole idea is to keep it out of their hands by reducing taxes and not making revenue neutral. So that doesnt stimulate the economy. You want banks to move, youve got to give me 3 gdp growth because the economy is moving. You want the economy to move, give it back to the entrepreneurs and businesses that will invest it. Revenue neutral, what a dumb idea for a tax cut. Are the markets really ready, guys, doc and pete, for nothing to happen now, as some are suggesting are we really ready for that kind of environment . Nothing to happen . I think a lot of what we talk about with the volatility and vix and where it is, just before we came on, they were talking about volatility cant go any lower. Yes, it can. And the movement yesterday, what did we have, a fivepoint movement out of the s p yesterday . Thats a vix in the 6s theres a lot to hold it up here even close to ten. Can we go lower . Yes. Dont expect much between now and labor day. Pete . A grinding market a rotating market. Its moving from financials to technology. Grinding in place with some moves higher. Absolutely. We were entertaining the idea yesterday as to how quickly we could get to dow 22,000. Right 350 points as of yesterday. Which wouldnt take that many slow Steady Movement days to the upside to reach that in a very short period of time. Continue to get the u. S. Dollar moving lower and thats going to be good for multinationals its been a surprise to everyone so far in 2017 so why not get the dollar the dollar is a significant story today that we havent even spoken about. Its a huge story all year. Nobody has talked about the benefit that its become its a tremendous benefit. Lets go to Kayla Tausche standing by with Steve Schwartzman. Kayla . Reporter scott, we are here with Steve Schwartzman steve, welcome you said you want to see deliverables today what are those well, i think there are a lot of different areas, from customs and issues and standards to investment that u. S. Companies can make into china and a whole variety of individual things, whether its in natural gas and other areas. So its been a really fascinating morning as ceos from some of the Biggest Companies in the world are talking about what kind of access theyd want to different countries, what can be fixed, inspections on food where sometimes you end up sending back a whole shipment all the way to the states because of very small infractions so these are all issues where potentially with goodwill you can fix these things. But youll need goodwill because this is a meeting of private sector executives. What did you feel could get done between ceos of companies that wouldnt get done if this were a governmentled meeting because nothing youre discussing here will be obligations for companies. Right well, thats true. But what happens is theres a huge array of things that governments can negotiate. What were looking for are things that can actually get done with minimum effort where you can highlight and inhibiting trade. Scott wapner has a question back in the studio. Mr. Schwarzman, its great to have you on the Halftime Report today. We appreciate you being with us. We were just coming off a conversation about the future of the trump agenda, the economy and whats going to continue to spur not only the economy but this stock market hire and theres a considerable conversation, as you know, about the gridlock that exists in washington, d. C. , and where you are and how difficult it is to actually get anything done and i wanted to ask you if you could react to the comments made the other day by jamie diamond of jpmorgan, its almost an embarrassment being an american traveling around the world and listening to the stupid blank americans have to deal with. He speaks about the stupidity that prevents this country from doing better than it already is. Whats your reaction to that actually, i just saw jamie walking in the door and i mentioned, you know, those remarks to him and i think at this point there are very few americans who are really proud of the functioning of the u. S. Political system i dont know what the great booster is in terms of getting things done and sometimes not even having particular civilized discourse. So i think theres a need certainly to improve to be able to have us do normal functioning. So, you know, i say things differently than jamie might in terms of language choice but i havent found anybody who thinks were batting 100 out of 100 in terms of how things are being handled. Are you more or less doubtful or perhaps more hopeful than the day you walked into the situation you find yourself in now, a significant voice that has the ear of the president are you more or less hopeful than you were about the likelihood and followthrough of the president s agenda and real things actually getting done well, im much more hopeful in terms of tax reforms or tax cut because thats something that is achievable on some basis. I think health care is extremely difficult, going back to the early 90s and any time that one tries to modify benefits that people have gotten and its always going to be a heavy lift. But in terms of economic issues, i think those things are certainly possible you have a unique position, though, steve, because youve advised the president on not labeling a currency manipulator, on trade, things like immigration. Have you talked to him about tax reform and where is he right now on that issue . Well, i think that theres a lot of stuff going on in washington i was out of the country i just got back. So im a little behind the curve on that. So ill let you all, you know, interpret whats going on. You said a month ago on cnbc that theres an excellent progrowth with the agenda but its not happening yet when do you expect the engines to be fired . I think most people think thats the First Quarter of 2018 type of issue and i havent changed on that and you can accelerate that a little bit, maybe, but i think thats more of a conservative time frame. Is that an expectation that it takes that long to actually get somewhere on tax reform or is there Something Else reforming your view . No. I think everything in a democracy has a lot of friction. You know, its not like running a company where theres easy deliverables its about profit. And this is a complex system and im a visitor. You know, im not a fulltime worker. Scott has one more question scott . I do. How does the stock market look to you these days . Well, the stock market was pretty fully valued. You feel it and youre seeing that in Foreign Countries and in china and usually the higher things get, the more volatility there is and so that doesnt surprise me. Weve been at record lows on the vix and usually when people believe in record lows continuing forever, thats usually the time when theres some type of surprise. You think were too complacent im sorry, kayla do you think were too complacent i leave that to you well only know retrospectively. Hindsight is 20 20 for a reason well let you go back to the meetings steve schwarzman, thank you. Kayla, thank you. We appreciate that guys, do you have a reaction to some of the things you heard i think hopeful sounds like a downgrade versus being convinced. Im putting words in his mouth but, look, hes got a position hes got to maintain in d. C. , put the best foot forward. I dont think anything gets done. John harwood, you heard steve shawarzman hes hopeful that you can still get things done including tax reform. You know, its possible i think steve is probably making a good base bet there, steve weiss, that is but it is its going to be more dependent on how republican legislators filter the pressures they have. Theyve been largely trying to move on an independent path from the president whose attention has been scattered and hes got the russia probe hanging over him. Yes, they are negotiating with members of the house and nate to try to come up with a consensus plan but once that happens, its going to be up to the republicans in the house and senate where theyve got a narrow Senate Majority to try to deliver that plan. Not going to be easy, not impossible he sounds cautious. Fully valued. Theres something in the horizon that could be happening. Unfortunately, youre not going to see it until its too late. Thats the message that i think we got. The other read i took off of that, and i was curious if youd be able to answer one last question when he says hopeful, does that mean how far out i think we are all looking for time frames. Originally we heard mnuchin talking about august thats why hes hopeful. I think thats why he chose that word rather than a much more convincing side of when this isnt this inconsistent to say that the market is fully valued and nothing gets done whereas if something gets done and he truly believed it would and you have the tax breaks and infrastructure, then the markets cheap. He punted the question sort of back to you guys, ill say, and that is, our investors too complacent you wake up one morning and see netflix is 9 higher and then you see some of the financial earnings, maybe they dont look so good and weve tried so many times, oil below 45 thats a reason to sell. You keep coming up with all of these reasons to sell and they dont work you have the political chaos in washington, d. C. , and back to stevens point, that hasnt worked since the beginning of the year we are busy, as you know. John harwood, thank you so much. Kevin oleary, thanks to you as well we have breaking news now on Goldman Sachs. Scott, thanks very much for that just a little bit extra collar in terms of the Earnings Call that we heard the miss on trading down to rates currency and credit and in that area it was due to a low client activity commodities was different. It was more about the stock of the commodities that have to be on the shelf and changing price of those commodities overall, it was the worst quarter since the Company Became public that we have seen within commodities. We do, of course, want to get a sense of whether this is a shortterm issue for Goldman Sachs or a longerterm issue since 2009, their market share has slipped significantly and in terms of whether they are committed to trading longer term, they said theyd go where the clients have led them and they commit to that broad exposure even though the current balance has hurt the last couple of quarters. Guys commentary from goldman cfo on what was a tough quarter, particularly in a couple of areas. How about this, what if i told you that this is now 40 and yet their revenue is near the line. And not only in line but matches last year. Why wouldnt you look at that and say, you know what, if that improves at all, scott, doesnt that actually add something to the company . And the read that people are having today and pushing down on the stock . Theyve been right on the precious metal call but absolutely wrong on their energy calls. Energy calls have been the exact opposite of what the market has done if theyre following their own advice on those youre right. Were not going to single out Goldman Sachs. No. Ill do this, judge ill point right here and say im dead wrong on them, too. But goldman clearly had said, joe, didnt they say they were looking for 60 out of oil . Yep think of in Goldman Sachs 2007, 2008 we thought of Goldman Sachs not as a Financial Institution but the worlds Biggest Hedge Fund and i think thats the problem right now for goldman sacks, is that the trading seems to matter so much because thats how we categorize Goldman Sachs it might not be correct when you look at the revenue but when you think of Goldman Sachs, you think of great wall street traders that right now are not producing the type of numbers that they historically have. All right lets move and talk about one of the biggest stock stories of the day, if not the biggest individual stock story thats netflix surging to an alltime high. Its the best day of the year for this stock reporting stronger than expected subscriber growth. There is a buy rating on this and price target was raised to 200 and 11 upside from here. Scott, welcome back. Hi, scott. I dont know, whats the best seperlative that you have for these results . They blew away most expectations. It was certainly the best Second Quarter in the history of the company and International Subscribers now exceed domestic subscribers. So i think those are two important topics to build on but longer term, i think what you have here is a company that has just surpassed 100 million subscribers which is on a clear path within the next four years to being around or above 200 million subscribers with a significantly higher profit margin and being very close to being the dominant provider of global video so any questions about maturation, saturation, throw them out the window . The company added a million subscribers in the perceived mature u. S. Business i think theres an indication in that that the company can comfortably get to 60 to 90 million banned in terms of subscribers in the u. S the opportunity there seems significantly larger in terms of a subscriber base. Scott, im going to let you run. Weve had breaking news. I appreciate you coming to the phone. Well talk to you soon i stead was a parade id go down the list but it will take the rest of the show. Im looking at probably 20 names that upgraded the stock or raised their price target. All the way down. You name it. Yep. I had some calls going into it. Weiss capital i also was short a lot of puts in this one i didnt have enough of a bet on to the upside. I did not think that this would be more than the 12 straddle was pricing in and here it is making this huge move to 185 or whatever from 161 last year, judge. So it is a blowout its not surprising that a lot of people were surprised. I was worried about it a little because the stock has done so well and sold part of my position yesterday in advance of earnings. Now what . Seriously, though, what do you do now ihad a bid below the market i was hoping to come back at 170 and 173. Never saw that ill wait a couple days to see what happens its being valued like amazon. Its beating amazon. It doesnt matter if they have positive cash flow all that matters is they keep the top line going with subs and build that mass around the company that nobody can get through. Lastly, pete, i heard you saying that you wouldnt chase it here. I wouldnt. I think youre going to get another opportunity for this thing to fall back the numbers were outstanding satisfaction levels, penetration, everything. They are executing perfectly we know there will be a day where well all sitting here on the desk and well see a significant pullback for whatever reason. The ponytail might be a little z yes but i dont want to be chasing this up 13 today. That could be a lot more gray, too. Yes were going to move on bringing new mnieang to the question, should you by the dip. That is next im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Welcome back to the Halftime Report. Blue apron is down another 6 following amazons news that they will be having meal kits. This stock originally seeking an ipo price of 15 to 16 bucks a share. Today is the 13th trading day of itsexisting and its closed up just three times since its debut, guys. Its been dealing with all kinds of declines and averages on decline of 6 over its life. With that, back over to you. Thanks, dom when you look at what the stock has done, i dont even know what else to say about it. The launch into this, just after the whole foods deal with amazon theres so many different elements that made it really difficult for them and you look at the stock every single day. Its not fun to kick something when its down but at some point isnt it attractive to somebody, somewhere no. The Capital Raise from the ipo, maybe they have Something Else up their sleeve. And that would be a reason for us to go up and buy it yeah, possibly. I just think this is a classic lesson in when all these hot ipos come out, everyone racing from the sidelines and trying to get into something to cash in on a quick buck i think the market right now, theres too many good things when a f. A. N. G. Misses, you dont have to trade the f. A. N. G. Names. Lets move to another stock its our call of the day chipotle raising its target. Its a 27 upside move from here if youre wondering why the stock is sinking today, its because the company shut a restaurant in virginia after multiple reports of customers getting sick the stock is down 6 i dont know what you guys make of this note but apparently they are hinging part of their upside story on queso i love queso as much as the other guy. Ive owned puts on this stock for a few weeks and its a good day. What can i tell you . I didnt count on the Virginia Store closing but thats ridiculous its going to drive earnings youre looking at 33 times to get to a price target. No restaurant has ever held that multiple, particularly with how competitive it is. Ill give them quesos with just a barn burner and well hear that from josh for weeks to come you keeping the puts . Im keeping the puts. The queso thing that we have with chilis im putting my hopes on it. You look at the numbers and theres something to this call and literally an hour or so into trading, they start pushing this stock again and its about this time frame, 18 months since the previous issues with the Health Issues and it comes up again, it pushes people back it will probably have an effect on some of the traffic numbers. They say we contend an introduction into queso. When i saw the headline i was like, come on. They say it could add for 2018. The problem if you live in virginia, you cant get the queso because they are closed because of illness. Tyler mathisen likes the queso. I would call this story chipotle and the strange case of the sick customers heres what is happening today mcconnell acknowledging the collapse of the bill that he hoped to pass but hes warning democrats not to celebrate. In the coming days, the senate will take up a vote combined with a stable twoyear transition period as we work toward patientcentered health care. The Israeli Military said they shot and killed a palestinian attacker palestinians have killed 45 israelis in attacks and there was a threestory building that collapsed in karachi, pakistan rescue workers were trying to free trapped survivors the age of the building and poor construction could have caused the collapse that is your cnbc news update at this hour. Now lets go over to Tyler Mathisen to see what is coming up on power lunch. Thank you, tyler. Im Tyler Mathisen i hope youll join us on power lunch Health Care Bill defeat. What that means for the market. And then danny meyer, does he have queso on his mind . Hell be with us and the analyst who says theres only one thing standing in the way of amazon and that is all on power lunch serving queso after Halftime Report. [woman] we did it. [man] were campers. Look at us. Look at us. Its so nice to get out of the city. Its so. Quiet. Is it, too quiet . Its awful. Yeah. Feel at home, pretty much wherever you are. Tmobile is americas best unlimited network. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov welcome back to Halftime Report. Im Kayla Tausche in washington with breaking news three republican senators have effectively stopped the standalone repeal in its tracks with a third republican senator moments ago coming out against the plan that senator is Lisa Murkowski who said she would not support the plan she joins a senator from West Virginia and maine who already had expressed their opposition to that plan this morning despite the fact that it was just last night that Mitch Mcconnell said that would be the alternate route that they would take because they didnt have enough votes for the full repeal its done for now. Kayla, thank you so much. Well see what the president has to say about this, if anything in the meantime, weve send the najarians to their spots in the corner, that being the telestrator. What haveyou got, judge . Trip adviser, taking advantage of what they think is another link in this stock august, 40 calls, traded in the spread but nonetheless, bullish activity second one, cien stock dipped today its making a little bit of a comeback here. Buying the 26 calls with the stock. Basically just under 25. Ill probably be in those in the neighborhood of 60 days, judge pete, you looking at v. I. P. Shops, this is a chinese internet company. Arou around 11. 50 these are july calls over 7,000 bought. They started paying ten cents and went up to 30 cents. Pretty aggressively. 7,000 bought very inexpensive shot and short term and somebody looking fo this stock to break above the 11. 5 level they are right there thats exactly the strike. This is very interesting and were close already. Well keep our eyes on atth in the meantime, well be right back on halftime hey dad, come meet the new guy. The new guy . What new guy . I hired some help. He really knows his wine. This is the new guy . Hello, my name is watson. You know wine, huh . I know that you should check vineyard block 12. Block 12 . My analysis of satellite imagery shows it would benefit from decreased irrigation. I was wondering about that. Easy boy. Nice doggy. What do you think . Not bad. 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. And at 4. 95, you can trade with a clear advantage. To keep our community safe. Before you do any project big or small, pg e will come out and mark your gas and electric lines so you dont hit them when you dig. Call 811 before you dig, and make sure that you and your neighbors are safe. 811 is available to any business our or homeownerfe. To make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. Keep yourself safe. Theres your market picture this hour. Of course, the markets are digesting Bank Earnings today from Goldman Sachs, bank of america, that big netflix boom certainly helping out netflix on what is a hot day, and it was down about 150 points at one moment earlier, but you can see has rallied back sitting at 21,541 lets go back to our eamon javers who is in washington, d. C. , standing by. We were wondering what the president s reaction is to the failure of the Republican Health care plan is going to be i expect that we would hear that in a matter of moments yeah, thats right, scott the president didnt have any oncamera events planned scheduled today, but in the wake of this obamacare news today, theyve added an event we are told that that event is wrapping up. The president did speak to cameras. He did talk about the failure of his Health Care Effort up on capitol hill and we are told the president said i think we are probably in that position where well let obamacare fail were not going to own it. Im not going to own it. I can tell you the republicans are not going to own it. Well let obamacare fail and then the democrats are going to come to us so thats the president s take on where the party is and on where this white house is right now in terms of Health Care Reform hes saying theyre simply going to bide their time and im not sure his political analysis is correct that he wont own it if he says we will let obamacare fail if this white house does allow that to happen and doesnt take steps to prevent it i think politically, the shoe might be on the other foot republicans might have the opportunity with total control of government. Im sorry for interrupting you. Lets go to president right now. I want to thank you, folks. Thank you very much. Thank you. Mr. President , are you angry at the republicans who came out against the Health Care Bill disappointed. Very disappointed. I dont think its dead, no, but im certainly disappointed and for seven years ive been hearing repeal and replace and when we finally get a chance to repeal and replace they dont take advantage of it so thats disappointing. I would say im disappointed in what took place and it will go on and were going to win on taxes, and were going to win on infrastructure and lots of other things that were doing. We won and are winning the war along the border we are very much decimating isis you can see that you see that better than anybody sees it, the soldiers that are with us today and we havent had a victory in health care were disappointed i am very disappointed because, again, even as a civilian, for seven years ive been hearing about health care, and ive been hearing about repeal and replace and obamacare is a total disaster some states had over 200 increase a 200 increase in their premiums and their deductibles are through the roof its an absolute disaster, and i think you will also agree that ive been saying for a long time, let obamacare fail and then everybody will have to come together and fix it, and come up with a new plan and a plan thats really good for the people with much lower premiums and much lower cost, and much better protection. Ive been saying that, mike. I think youll agree for a long time, let obamacare fail it will be a lot easier, and i think were probably in that position where well just let obamacare fail im not going to own it. I can tell you the republicans are not going to own it. Well let obamacare fail and then the democrats will come to us and theyll say how do we fix it how do we fix it or how do we come up with a new plan . So well see what happens, there are other things going on right now, as we speak, but i am disappointed because for so many years ive been hearing repeal and replace. Im sitting in the oval office right next door pen in hand waiting to sign something, and ill be waiting and eventually were going to get something done and its going to be very good, but obamacare is a big failure, and it has to be changed. We have to go to a plan that works. We have to go to a much less expensive plan in terms of premiums, and something will happen, and it will be very good it may not be as quick as we had hoped, but its going to happen, okay [ indiscernible well, they were not disloyal. They had their own reasons i was very surprised when the two folks came out last night because we thought they were in fairly good shape, but they did, and everybody has their own reason, but if you really think about it, you look at it and we have 52 people we had no democrat support which is something that really should be said. We have had democrat depps voted, as a lot of people. We had no democrat support we had 52 people and we had four nos and we might have had another one somewhere in there, but essentially the vote would have been pretty close, if you look at it, 484 thats a pretty impressive vote by any standard, and yet you have a vote of 484 or Something Like that, and you need more thats pretty tough. So the way i look at it is in 18, we will need to have some more people elected. We have to go out and get more people elected that are republican, and we have to probably pull in those people, those few people that voted against it i dont know theyll have to explain to you why they did and im sure theyll have very fine reasons, but we have to get more republicans elected because we have to get it done. We have it passed in the house and you can use his head as a stand. We dont want that to happen youre messing with the wrong guy here so we want i think were going to do very well, actually, in 18. I would be not surprised if something were done long before that, but in any event because the margin is so smalls and majority margin is so small well have to get more republicans elected in 18, and ill be working very hard for that to happen, okay it would be nice to have democrat support, but really theyre obstructionists. They have no ideas they have no thought process all they want to do is obstruct government and obstruct period, and in this case, think of it. So many good things, we didnt get one vote and their plan has failed and by the way, obamacare isnt failing. Its failed. Its gone. I think something will happen. Well find out stay tuned thank you all very much. That is the president of the United States there on tape from moments ago from the white house saying he is disappointed at the failure of the Republican Health care plan, a plan to repeal and replace obamacare. I dont think its dead, he said it will go on and well win in taxes and infrastructure he noted wins against isis and also noted several times about saying he had heard over and over again over the last seven years about the bid to replace and repeal obamacare, that it just didnt get done he says now well just let obama fail im not going to own it, the president said and the republicans arent going to own it eamon javers is standing by. He said he was surprised by the two senators last night who said they would not support the plan effectively, killing it. There was dinner at the white house over steak and succotash when the president got the news, and dramatic moment. Caller they we. They had no idea that this was going to happen, that two republicans were about to walk away and there may have been more than two who were willing to walk away from this deal and two who were willing to publicly torpedo the republican reform effort as it stands right now in the senate and thats enough to make sure that this isnt going to move forward. They only have a 52vote margin and theyve lost two votes and that made it nearly impossible to move forward especially with the prospect of other senators, waiting in the wings and what you just heard from the president is a sense of real frustration. This is a president who feels stymied by the political process who campaigned on the idea who realized washington is much more difficult to fix than you might suspect and also realizing he might not have an opportunity to do anything on obama dair until after 2018 he doubts that there will be a reform effort before 2018 at any point. So thats an indication that this president thinks that at least for the time being, this obamacare effort, scott, is stalled out and probably not moving forward despite some words of optimism that he had there. We appreciate it, jeamon javers the president making the comments on the failure of the republican plan. Power lunch picks up much more on that and the markets right now. Im melissa lee heres whats on the menu. The gop abandoning the senate Health Care Plan and the repeal to replace is dead, too. Insurers on edge, markets are slipping and the president just sounded off and the unfolding details on this d. C. Drama straight ahead shares of Goldman Sachs getting hit hard after reporting their worst quarter ever for commodities training and well go inside those numbers and from the milken boom and the burger wars, a full plate of issues on the food menu. Well dive right in with restauranteur danny meyer. Belly up to the bar. Power lunch starts right now