Transcripts For CNBC Power Lunch 20160317

Roughly where they are. And any motion there is going to be slow and deliberate. Lets get to bob pisani on the floor of the new york stock exchange. It is the newest leg of this rally, Dow Jones Industrial average at a high for the year and much of it is being fueled by that weak dollar set off by the fomc announcement yesterday. Want to show you that dollar index. Dollar lost 2. 2 against other currencies just in the last 24 hours or so. Thats a huge move. Big move and big help from materials and industrials and Energy Stocks. Look at caterpillar here. Caterpillar gave the worst kind of profit warning, dropping essentially dropping profits 30 in the First Quarter and the stock is up 1 today. Look at that. Moved about 3 . This is a twoday chart. Thats a sign of how powerful the weak dollar rally has been. Now, take a look at other commodity needs, throw in a couple of names, free port, alcoa, devin energy, Energy Stocks moving today. This is the second day of a notable rally. Put the same stocks up, put the full screen up, ill show you what the same stocks have done just in the last 24 hours, since 2 00 yesterday. Free port up 11 , alcoa up 7. 5 . This is less than 24 hours. Thats how powerful the rally has been on the weak dollar. Weak dollar means the euro and yen have strengthened. What does that mean . That means tough news for european stocks, who are big exporters, like the automakers, bmw and daimler and sneaker manufacturers like adidas. But lets not look a gift horse in the mouth. Were seeing an expansion of new highs. Nearly 200 at the new york stock exchange, havent seen that in a while. I got an industrial at a new high, illinois tool works, we know the big consumer days, a lot of them on new highs and verizon and at t. Rally continues. Back to you. Bob, thank you very much. Meantime, lets bring in ron insana and mike santoli. The dow basically at break even for the year. The s p getting close. Ron, where do we go from here . I think this is a very tradable rally. The fed breeds new life into the entire process yesterday by saying, listen, theyre going to delay, theyre going to cut the number of rate hikes, i think theyre not going to raise rates at all this year. That does extend the life of this. I do think the burden, though, tyler, is still on the bulls for a real breakout. This may be a tradable rally. Im not sure it is a new leg in the secular bull market. We havent heard anything about profits, mike santoli, yet this year. That seems to be one key here. The fed may well be another key here. What does history tell us about Market Performance when you have this kind of i hear bagpipes behind you. First of all, lets talk about this tradition we have here. One of the floor brokers is entertaining a lunch crowd here with some bagpipe music. By the way im guessing mr. Carbshcashin the middle of this somehow. St. Paddys day, one of the strongest days of the year, up on average 1 . And four other days of the year have been stronger. Make of that what you will, i guess in terms of motivation. I think we can probably infer happy hour has begun there and the lets just say liquidity is being injected. So, mike, what does history tell us when we begin a year as we have with major losses, and we come back this late in the year to hit the break even point . It is actually a little cautious when you have a year like this one that has gone this deep. 50 plus trading days without the s p 500 once even for one minute trading positive. Only happened six times before. Five of those six years you did have a decline the remainder of the year. Nothing cataclysmic but that being said, because were so close to the flat line, it doesnt necessarily mean that we are in meltdown mode. I honestly think that getting back to even for the year is significant and what does encourage me a little bit is a lot of the suspicion that continues to surround this rally. The idea that this was just kind of a snap back. I totally agree with ron, the burden of proof is high in terps of getting back to the all time highs since last may. The fed removed the negative. Were tethered to the weak dollar, strong oil trade, until further notice. Mike, im glad you brought in the idea of a suspicious rally. Just looking at the screen today. You see still money going into the utilities. Theyre up 1 today. And telecom, bonds are not selling off. This is not the kind of Market Reaction one would think or a day which could be momentous in which we claim the flat line. Thats why i think it is more of a swing traders market. It is not look, for investors, for longterm investors you do what you do throughout the process. Ten, 20 year thing. You take that part off the table. If youre active, youre trying to catch 10 off the bottom and get 10 off the high and trade this back and forth. Lets not forget, yesterday, the feds news and the guests we had on gross and minor, they were warning us about some stuff. I cried myself to sleep. I was terrified after that interview. You have gold up 35 an ounce here. This is a risk market, but investors are acting like everything is fine. Thats a reflation trade. You look at the dollar falling, rates standing pat or going lower and rates lower around the world, gold is going up on a reflation trade, so is oil. I dont like the head winds overseas, theyre still rather stark. Geopolitical risk is rather high. Could make for a choppy environment. We may not be going to the moon and epic collapse, but one of those environments very difficult. Thanks to our two honorary irish men, we appreciate it. Were also following a developing story out of brazil where political tensions continue to escalate. Michelle carusocabrera is with us from the nasdaq with the details. Protests erupted across brazil last night following president Dilma Rousseffs decision to name her silva as chief of staff. If he becomes a cabinet minister, it makes him immune from prosecution. Thousands of demonstrators flooded the avenue in the Financial Hub of the country and the site of one of sundays largest demonstrations. People have been in the streets now for a couple of days. Look at the ewz. Up by more than 7 . They surged even more after brazilian judge issued an injunction to try to revent lula from taking the job because he says it will disrupt the justice process. Lets bring in the cohead of emerging markets. We see a lot of investors piling into brazil because they think what happens there means the current president Dilma Rousseff is going to get impeached. Are you one of those people who are bullish on brazil for that reason . Hi, michelle. We are bullish on brazil and we have been bullish on brazil for a while. Our view has not been predicated on regime change, not happening this quickly. The expectation has been that even the level of on the political prowess that has been part of the brazil story for months now ultimately would leading to some kind of disruption and we might be on the verge of that, we dont know. But from a more fundamental story and we like brazilian assets for a while now. What if dilma does go . Is that good for brazilian stocks and bonds . It should be. Largely this would bring a shock of confidence, something that has been missing. And it would bring the political stand still it a stop. A new regime would most likely be able to inject optimism that has been missing, provided this happens in the context of the process that is within what the constitution provides and we dont have a reason to expect that that wouldnt be the case. So it would be a positive, i would think so, yes. I almost to me sounds like youre suggesting maybe a coup or something, im not sure about that. What do you guys what is the house betting here at this point . Do you think shes going to go . It is looking more and more like it is going to be very difficult situation for dilma to remain in office. There are actually two channels that are pursuing potential impeachment for the president. One of them might prosper. It is a process on the table for months now, but the expectation is this was not going to happen for maybe throughout the course of this year. But as we the story is very fluid, a lot of headlines are hitting the tape as we speak. But it is moving in the direction that it points that things are becoming too tenuous and we might be coming to an end of the process. But, again, we expect this to happen within the framework of the constitutional the constitution. The notion of a coup and all that stuff seems outside of i wasnt sure, you want them to follow rule of law. A lot of investors in the world would want them to do that. Gorky, thank you for joining us. Appreciate it. Thank you. The Economists Intelligence Unit making a big claim about what it sees as the dangers of a donald Trump Presidency. They equate the economic risk of him being elected with the Global Economic threat posed by jihadi terrorism. Well hear from the man sounding that alarm next. Every insurance policy has a number. But not every Insurance Company understands the life behind it. For those whove served and the families that have supported them, we offer our best service in return. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Theno one surface. Out there. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. I am a First Responder tor and iemergencies 24 hours a day, everyday of the year. My children and my family are on my mind when im working all the time. My neighbors are here, my friends and family live here, so its important for me to respond as quickly as possible and get the power back on. Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. Welcome back to power lunch. Lets talk a little arts and crafts here. Michaels hitting session highs now, rising all day long. The Company Reported a beat on fourth quart estimates for sales and profits with an assist and demand for holiday products. Michaels gave their First Quarter Profit Guidance above many expectations. The shares are still down, though, 7 over the past 12 months. Back over to you. Dominic, thank you very much. Donald trump winning the presidency could have a dangerous impact on the world economy. That according to a new report out by the respected economist magazine. In its updated global risk assessment, a Trump Presidency would be as dangerous to the world economy, says the magazine, as the possibility of islamic terrorists destabilizing global growth. Quote, in the event of a trump victory, his hostile attitude to free trade and alienation of mexico and china in particular could escalate rapidly into a trade war and at the least scupper the transpacific partnership. We reached out to the Trump Campaign several times today for a response but did not get a comment. Robert powell is the economist editor and one of the researchers behind the report. Mr. Powell, welcome, good to have you with us. Good to be here. I think just go ahead and explain how you put mr. The risk of a Trump Presidency to the Global Economy on a par with the risk deriving from global jihadi terrorism. Well, the United States is the biggest economy in the world and the identity of its president is obviously of huge interest and huge significance, not just for the United States, but for the rest of the world as well. So if you do have Something Like a trade war, or falling out with china, or indeed complete policy inaction at home, it has a spillover effect for the Global Economy. Jihadi terrorism is terrifying and dangerous prospect for all of us. But it would take a series of major events in a series of Major Economies to actually disrupt the Global Economy. In other words, isolated incidents of terrorism wherever they might occur in the world, that came from islamic jihadism would not cumulatively have the pose the same rifb risks as a global trade war fermented by mr. Trump. Absolutely. I entirely agree. You need something along the lines of one or multiple 9 11 type events. You make the point in there that mr. Trumps bellicose rhetoric with respect to muslims, with respect to immigration, with respect to attacking islamic terrorists and their families where they live, and sending Ground Troops into syria among other places to root them out would paradoxically or maybe not paradoxically would just directly aid in the recruitment of more jihadi terrorists. Yes. Thats very much our view. Jihadi terrorist recruiters for a long time have been claiming that the United States is actually engaged in a war against islam. So an invasion of syria and taking that countrys oil, which is actually what mr. Trump has advocated would really lend to that recruiting core. It also doesnt help necessarily alienating 1. 6 billion muslims across the world by saying there will be a ban on muslims entering the country. That kind of rhetoric is going to alienate and add to the recruitment. It is brian sullivan. Surely you must admit that whoever is in the white house, donald trump or whoever it might be, we have a congress. And they provide a valuable safeguard toward maybe enforcing some of the stuff that the politicians say. Did any of that go into your consideration . Yes, it does. One of the great concerns is we have had considerable dysfunction across the u. S. Political system for years. But that will probably descend into something approaching political chaos into a Trump Presidency. If you think about it, it is not just obviously the democrats that oppose him, but so do quite a lot of republicans as well, in the top echelons. As you get any policy action immigration, tax reform and so forth, it will be a heck of a long shot. I suppose the same could be said for a democratic president who could be polarizing in their his or her own way and would face congressional hurdles on many things they might like to do as well. Lets look, come back to mr. Trump and islamist terrorism. But i want to get you to identify the other risks on your sort of top ten list of Global Economic risks. The number one one, i believe it has been there before, is the risk of china experiencing what you call a hard landing economically followed by russias interventions in ukraine and syria bringing about a new cold war. Yeah, that number one has been for a few months now. The fear is china, with debts of around 240 of gdp, it is now approached and in some cases surpassed the levels of debt we had in the u. S. From the financial crisis and we had in japan for its long stagnation and in thailand before the asian crisis. There will be a reckoning at some stage. When that bubble pops, so will the China Economy and it is hugely significant for the rest of the Global Economy for producers, consumers and so forth. Thats our number one concern. Robert, thank you for your perspective. Well be watching. Appreciate it. Thank you very much indeed. Robert powell, the economist. To Michelle Carusocabrera with breaking news. More news breaking on cuba. I learned in the last hour a plane load of mail from the United States landed there yesterday and the u. S. Postal service confirming to cnbc that they have just resumed mail service from the u. S. To cuba. So there is another another new regulatory change we have seen this week. Interest there is another one, im going to tell you that one after the break because it has a direct impact on our next guest, the ceo of Norwegian Cruise Lines, who hopes to have a ship pulling into havana later this year. We talk to him next on power lunch. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive from icy ocean waters. To your kitchen counter. On. Pure. Pristine. Each one its own delicious arctic prize. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door. Get your first two meals free blueapron. Com cook. Welcome back to power lunch. Were here at the nasdaq for the war in momentum cuba opportunity summit. Lots of people here discussing about the possibilities of doing business in cuba and in the last hour, more news related to the regulatory framework. The u. S. Removed cuba from the list of ports they deem to have insufficient security. Super important to our next guest. Frank del rio, president and ceo of Norwegian Cruise Line here at the cuba opportunity summit today. You obviously need this regulatory change to pull a ship into cuba, correct . It is technical, but yes. Big deal. Here we are, one year ago we interviewed you at the same conference. Lots of hope. Everything was so new with the change in cuba relationship. You have been working on getting a cruise into cuba since then. How is that going . It is going well. A year ago was all euphoria, all lots of hopes and dreams and now the hard work began right after that. It has been a year of hard work, a year of development, but countries have done a lot of work to clear the path to make it easier. Still within the confinz of the embargo. Sooner or later the embargo has to go for the Tourism Industry in cuba to flourish. Today, even with all the changes that the executive orders have, it is travel that is allowed, not tourism. There is a big distinction. Still, there has been a lot of criticism of the process so far because the americans have made the american side has made so many changes. And yet we havent seen any really big deals announced by the cuban government at this point. We hear rumors, leaks that marriott will announce something next week. But it doesnt feel like there has been a lot of progress. A little patience. Look, it was 55 plus years since the deep freeze. And deep freezes dont thaw out overnight. A lot of work has gone on and in my view, there are a lot of deals, lots of transactions, a lot of agreements. Theyre on the cusp of being executed and being released and announced. These are complicated deals. It was a complicated relationship. Things are getting easier to work with. Both sides want this to happen. So youve got cooperation, youve got willingness, the cuban people want it, the American People want it, everybody wants it. So i think it will be you will start seeing some changes that we all have been hoping for. For viewers who dont know, you were born in cuba. I was. Left when communism descended upon the island. What would it mean to you to have one of your ships pull into havana. I guess goosebumps thinking about it. It is the old prodigal son coming home. Ill be on that bridge. I might even be driving the ship myself. No. Only kidding. But it will be an emotional day for my family and i and all my friends who will be joining me. Tourism is always important to cuba. And i think it will be a catalyst to jump start the cuban economy and a more freer, more capitalistic system that they are evolving to. And im just happy that Norwegian Cruise Line holdings, my three brands, can help break that ice and be among the first to go to cuba. Youre confident it is going to happen. Im confident it will happen, yes. Your stock is up 3. 3 . It has been moving as youve been talking. Keep me on. Come back every day, right . Frank, thanks so much for joining us. Pleasure. Frank del rio, ceo of Norwegian Cruise Lines. It is also another big day for oil, crude oil crossing briefly 40 bucks for the first time this year. The dow also going positive, are they related . We think so. But were going to ask some big money investors what they think, what they are buying right now. Stick around. C pays cash. Aflac isnt Major Medical enough . No whos gonna help cover the holes in their plans . Aflac like rising copays and deductibles. Aflac or help pay the mortgage . Or child care . Aflaaac and everyday expenses . Aflac learn about one day pay at aflac. Com boat blurlbrlblrlbr im in charge of it all. Business expenses, so ive been snapping photos of my receipts and keeping track of them in quickbooks. Now im on top of my expenses, and my bees. Best 68,000 employees ever. Thats how we own it. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back to power lunch. Inefficient, ineffective and unaccountable bureaucrats at the epa allowed this to continue unnecessarily. Louisianas governor says 26 parishes are under a state of emergency due to extreme flooding. Officials releasing video showing the devastation in st. Tammy parish where many are forced to get around by boat. That is the video on capitol hill. Britains Prince William carrying out a traditional ceremony in honor of st. Patricks day. The prince handed out shamrocks to members of the irish guard. Hes wearing one himself. A zoo in peru is welcoming two rare white bengal tiger cubs. The pair were born two months ago and theyll go on exhibition in just about a week or so. Theyre so cute. All right, thats the cnbc news update this hour. Melissa, back to you. Cute and vicious, im sure. Lets check on gold prices right now. Theyre closing and the driver of the trade and the commodities trade in general is a weakness were seeing in the dollar. The dollar index is down by more than a percent at this hour. We see that reflect in the gold price, which is soaring today, up 3 . 1265. 10 is the level per ounce. The rest of the metals complex, all in the green, pretty much across the board. Silver up 5 . The best of those metals. Now a check on the bond market, lower dollar, lower yields, thats what were seeing in todays trade as well. Yesterday, we had the tenyear yield, just under 2 and right now were below 1. 9 . 1. 898 to be exact. Dont look now, america, the dow is suddenly positive for the year. This as oil briefly boogies back above 40 bucks a barrel. These are nice headlines. The question is, what do you do about it . Joining us, Brad Mcmillan of the Commonwealth Financial Network and michael kugino. Thank you very much, mike and brad, for joining us. It has been a big month for ill and most oil stocks. Two questions, have you been a buyer and if so, a buyer of what in energy . Yeah. Getting into specific trades i cant do that. We have been a buyer and holder. As you know, were always having exposure to Natural Resources and commodities. So in many cases we held on to our names, feeling that the downdraft was going to be shortterm in nature. And we are longterm believers in energy. Thats why were there. And we have dabbled in a few names and are looking at some others. I think energy has come a long way quickly here. I wouldnt be surprised in the shortterm if there is a little pullback or consolidation. But, again, longterm we think that the glut is primarily driven by weak Global Demand and strong dollar. Those conditions over the longterm are going to alleviate the world needs energy and we think as a longterm investor it is a good place to be. Thankfully because of the internet i can look at your positions as well. How about this. Maybe ill just ask you a stock and see if you still own it, you can nod or shake your head. Chevron and newfield exploration. Still own them, yes. So obviously youre positive, negative. Free port mcmoran. Still own it as well, yeah. I think all three of those names, we like them longterm because of theyre all slightly different. Chevron, big integrated producer, good size dividend, the capital to do whatever it wants. Theyre gearing up as all the big ones are to potentially buy out the weaker Balance Sheets over time here. Newfield, smaller producer, and free port mcmoran, copper play as well as energy play. Copper prices moved quite a bit lately too. All three have experienced a big bump in price lately. Consistent with the rise in commodities generally. We think theyll go further over the longterm. Lately. Free port beaten like a rented mule, down 39 over one year. Carl icahn bought into it last year. It had a huge run of late. A lot of heavily shorted names have come up. Sounds like youre bullish longterm for free port. We are. We think copper will be in demand. Generally speaking, i think were at the bottom of a commodities cycle. It has been exacerbated by the strong dollar, but at the core, this is a commodity, low point in the cycle. Thats when you want to be buying the names, oil energies, industrial metals. They have a lot of room to run. With free port, diversification between the copper business and oil business, we think it is a good core holding. With respect to newfield, a small producer, maybe more risk in the balance sheet. They have done follow on equity offerings which have shored up their particular balance sheet. Which makes me feel comfortable for the longterm that they may be a survivor. Obviously time will tell. But i think what you do is you look for the companies within the overall industry that has been beaten down for characteristics that you like about certain names and you go with those. Brad, are you a buyer of oil, gas or Energy Stocks . I am at this point. I agree with the points that michael has made. And if you go back in history, every single time we have seen a decline like the one we have seen and there are multiple examples, the market bounced back in the next year or two and youve seen 80 , 100 , more price bouncebacks and thats what says to me, a lot of companies are not going bankrupt and there are big opportunities for companies with capital. It is a weird day today. Post fed. The fed said, well be more dovish than we thought. The reason is there is all these global fears, suddenly you have oil up, gold up, stocks up, commodities up, emerging markets are up. It is a weird market, is it not . I think the fed, frankly, is behind the curve on global risk. If you look at the things we have been concerned about, we have been concerned about a strong dollar. Well, thats starting to reverse. We have been concerned about Oil Essentially going to zero. Well, it doesnt. It bounces back. Thats what were seeing. Were seeing u. S. Manufacturing data come back fairly strongly. In other words, all of the fear that was out there, you know, the risks were real, but they didnt play out. So now people are getting more cheerful. I think the fed misses that. Before we let you go, last question, give us a sweet spot you think was not a good investment a few months ago, could be a sector asset class stock, whatever, but is now. I think energy turned a corner. If you look at the way the markets responded, we have seen the stocks come back strongly and were only going to see that continue over time. Companies are going to be able to buy assets for nickels on the dollar. Energy companies with capital available, i thinks they a great place to be in the next year or two. Brad mcmillan, michael kugino, thank you for your insight. Have a great weekend, happy st. Patricks day. If you want more stock picks or more ideas, check out powerlunch. Cnbc. Com. Check the website out. Right now. Do not wait. Do not hesitate ever. Why the u. S. 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And an infinite reserve of patience. To create a vehicle that looks, drives and thinks like nothing else on the road. The allnew glc. The suv the world has been waiting for. Starting at 38,950. Welcome back. Bill ackman reducing his Pershing Square stake. Mondelez is down 2 . Glaxosmithkline announcing ceo andrew witty will retire a year from now after more than three decades with the drugmaker. The stock is up 1. 3 . And mckesson will cut 1600 jobs or 4 frs of the u. S. Workforc. The stock is taking a hit, down almost 3 . Major automakers and the federal government unveiling a plan that could have a big, big effect on auto safety over the next few years. Here is phil lebeau live in chicago with that story. Hi, phil. What if i told you maybe five years from now any vehicle youre in will automatically hit the brakes, even if youre not paying attention, which would dramatically cut down on rear end accidents. That is the announcement that came today out of washington. 20 automakers have agreed they will develop a standard and make it standard that we have automatic emergency brakes in all vehicles. We tested this at the Insurance Institute in virginia last year. Currently you can get this type of technology on select models, it is going to be standard by 2022. Here is the head of the national highway Traffic Safety administration. Too often safety efforts especially in the past have been determined by what government could force manufacturers to do and what manufacturers could avoid doing. In a world where we lose more than 32,000 lives a year on the road, that approach isnt good enough. All right, so what does this mean in terms of cutting down on the number of crashes, injuries, deaths on the road. It could cut rear end crashes by 40 and to put that into perspective, that could prevent 4,000 injuries a year. I tell you, what theyre really expecting is where it is going to help is people texting and driving, those low speed crashes, theyre not paying attention and they hit the car in front of them. Take a look at the companies that make a lot of the technology that goes into the automatic emergency brake systems, mobile i and delphi, they make the entire systems including the cameras, trw makes the sensors, invidia, a chipmaker. All of the companies are likely going to see huge business over the next six, seven years and into the future as we see more and more of the technology now becoming standard in all vehicles. Couple of quick questions, phil. Would trucks including big over the highway 18 wheelers, dump trucks and the like, be fitted with these things as well . Well, the technology is there. They are not part of this announcement. This announcement is just involving cars and trucks that you and i drive, not commercial vehicles. I have on one of my cars a system when i engage the Cruise Control, it will slow and stop me if i come up too close to the car in front of me. Similar. It doesnt work with the Cruise Control isnt on. It will be similar, but what youll see in the future, it is automatic, tyler. We tested this out that even if youre not paying attention, it will hit the brakes so that you do not hit the vehicle or the object in front of you. Im a skeptic on the selfdriving cars. Melissa is not such a skeptic. I am a skeptic, but this seems like a real safety enhancement. Consumer reports out with what it dubs the worst car, am i quoting that correctly . Worst . Worst of the worst. Thats what were calling it. The worst of the worst. We listed this on cnbc. Com. It got huge reaction. Essentially it comes down to this. Consumer reports said, look, here are the worst rated models in our opinion in each category. So, for example, youre talking about with compact luxury cars, the maercedesbenz cla, compact car, the fiat 500 l. Youve got to go and read some of the comments. They are stinging in terms of saying what to watch out for. Based on defects . Based on Consumer Reports own analysis of the vehicles, their road tests and how they have done in crash tests. They point out that the 500 l got a poor rating from the Insurance Institute when it comes to certain crash tests and thats one reason why they rated it as low as they do. Phil, on fiat, i was reading the other day about how theyre trying to change their dealer structure to allow fiat dealers to sell other Fiat Chrysler brands. How much trouble is fiat in . I dont think it will ever catch on in the u. S. We see limited advertising for them. It is a niche brand. Two things are going against it. One, cars are out of favor in the u. S. And small cars are really out of favor. And, two, it just does not have that resonance with americans. Im not sure it ever will. Yeah, they come up with ads every once in a while, Charlie Sheen or somebody else that are kind of edgy and catchy, and then it fades away. And youve got to do more than that over an extended period of time to truly catch on. That cla, thats mercedes idea to go down below 30,000. Mass market mercedes. You find me one for that new and guys if you read what Consumer Reports writes about that vehicle, they say, look, you feel like youre in a confined interior, boxy, not a refined mercedes feel to a vehicle. Theyre pretty blunt in their analysis. Longer fiat. Phil, thank you very much. Appreciate it. Phil lebeau. Seaworld phasing out the most famous attraction, the full details ahead. And were keeping a close eye on the s p 500, just points away now from turning positive for the year on the heels of a 13. 3 gain. Power lunch will be right back. The lexus command performance sales event is on. 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Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Ive been widely mocked for pointing this out, but the s p 500 is sitting at 2016 intraday session highs. The importance of this is were just. 1 away from being flat for the year. We did not mock you. Can i remind you that you laughed at me when i pointed that out . I went like this i didnt go like this. Seaworld entertainment responding to sustained protests announcing it would end the breeding of killer whales. Morgan brennan joins us with more on that story. So seaworld is doing away with its most famous attraction, phasing out killer whales and the theme park operator will end theatrical shows in all locates from california to texas to florida and it will also stop breeding them, meaning seaworlds 24 existing captive orcas across three marine parks will be the last. This is a response to persistent public backlash in the wake of a 2013 documentary critical of the companys treatment of orcas. That culminated in battles with Animal Rights activists and state regulators in california where the uproar is the most pronounced. We have seen falling earnings, waning attendance, higher legal and marketing costs and a plunge in stock price from 40 a share at the mid2013 peak after the company went public to about 18 today. So an l. A. Times oped the seaworld ceo said were proud of contributing to the evolving understanding of one of the Worlds Largest marine mammals. Now we need to respond to the attitudal change we helped create. Part of that response will involve an orca encounter exhibit for the remaining whales, start rolling out first in california next year. Meantime, streets liking this. Stock is up 5 , 6 . Theyll end the shows where the trainers get in with the i think they already have done that because of a death of one of the trainers but where they do displays. Have they done that or is that planned . In california they ended shows, said theyre going to stop breeding after originally saying they were going to fight the regulators who wanted them to stop breeding. Now theyre expanding it across all of their parks in texas and florida as well. And i think the interesting thing here is given the fact that killer whales live for up to 50 years, according to seaworld, even though theyre saying theyre going to phase out these orcas this is a process that will take decades. They have the good headlines, the shifting Public Perception that comes from it, but it will take decades in which they can actually leverage the current theyll display them as part of an exhibit, i take it . Theyll hang out. You got to wonder what will happen with the stock price. Since black fish, the stock has gone nowhere. This is once a very hot ipo and took it on the chin when the black fish documentary was released. We have seen multiple quarters of losses for the company ever since that documentary came out. They are evolving. Theyre going more ridebased. They have built out their rides. Going more of the universal type, they have got numerous rides, so yes this was their key feature, i guess you could say. Theyre trying to become more the universal model, that also costs a lot of money, ever built a roller coaster . It is expensive. I built one in my backyard. Morgan, thank you. Morgan brennan. To michelle at the nasdaq. So u. S. Credit cards still dont work in cuba. But lots of americans are going, what do you do . You can get a debit card from floridabased Stonegate Bank. It is the only bank that does it. Coming up from the cuba opportunity summit, were talking to the president and ceo of Stonegate Bank about that and other opportunities and the challenges of banking in cuba. Power lunch is back in two minutes. Anything worth pursuing hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com welcome back to power lunch. I want to point your attention to the eem, the emerging market etf. Now up more than 5 for the quarter, tracking for its best quarter since the Second Quarter of 2014. A gain of 5. 4 . A couple of factors were helping emerging markets outperform. The move is in response to the fed meeting yesterday keeping rates unchanged. Thats pushed the dollar lower. Looking at the dollar index tracking for its worst quarter since q3 of 2010. Thats a big problem for emerging markets because they have a lot of debt that is denominated in u. S. Dollars, so the stronger dollar for a while has been a big head wind for emerging markets, especially when you look at turkey, india. Big part of the story is the currencies and commodities. We have been seeing it resurgence not just in oil but in iron ore, coal, nat gas, big win for brazil, russia, among other countries. This is still ill melissaize this. What does that mean . Ill dig into the data. I like it. This is a china play. Nine of the Top Ten Holdings are china or taiwanbased. If you buy the em, you get turkey, south africa, gold, but what youre getting is recovery in semiconductors in china. We have seen a rebound. The shanghai composite up 8 this month. What is interesting to point out is that investors are still pretty concerned about the china story. I think one thing that changed as we have seen the stabilization in the chinese yuan but were not sure if that will last. Seema, thank you. Seema mody. To michelle at the nasdaq. Were here for the cuba cnbc is the official broadcaster of the cuba opportunity summit. Thats why were here. One small American Company is banking on very big business in cuba, floridabased Stonegate Bank, offering Certain Financial Services within cuba. And also opening a bank account for the cuban government. Im joined now by dave saleski of Stonegate Bank. How is it that a small floridabased company, floridabased bank, becomes the bank that ends up opening a bank account for the cuban government here in the United States and offering Financial Services in cuba . Wasnt planned. I was driving along one day, about maybe 14, 15 months ago and one of my customers who did do business in cuba, which we made transfers for, was having lunch with the undersecretary of cuban affairs, mark wells, and they called me up and said, hey, would you be interested in ba banking what was the cuban interest banking section. They have been without banking services, operating on a cash only basis. The prior bank had gotten out of embassy banking altogether, nothing to do with cuba, but out of the business entirely. It was a big issue. Holding up the talks for starting an embassy. It was creating quite a bit of hardship for cubanamericans and other travelers dune to cuown t it was one of the key sticking points to reestablishing diplomatic relations between the United States and cuba. Cuba was so insistent they didnt get a bank account, diplomats were carrying around bags full of cash in order to pay people, to pay their bills. Now youre offering a debit card that works in cuba, correct . We have a debit card that works for travelers going down to cuba, commercial travelers. People doing engaging cuban people. How many have you issued . Under 100. Not so much. I think it could be a lot bigger. There is 400,000 u. S. Travelers last year to cuba. Cubans are estimating there will be a million this year and with the that was before the travel restrictions were eased a couple of days ago. So 2 million canadians that go a year. I think it will increase significantly. Youre originally from south florida. You know how contentious the cuba issue is. When the announcement happened, there were protesters outside one of your branches because they were so upset about this. Why did you take on what could have been an incredible hassle . After 50 years, this the embargo doesnt work. Thats clearly something needed to change. And, you know, the cubans, cuban americans are very close culturally. Doesnt make any sense. You had two governments and a very dysfunctional relationship. So we thought we could help by putting the two together by doing this. And i had a little bit of an advantage. Im from south florida, i understand the issues. But im not a cuban. Im not a cubanamerican. Why is it an advantage not to be a cuban. I can understand the issues and the emotions behind it, but i dont have relatives i got to answer to and, you know, and peers where i would lose friendships and relationships. I think it allows me to understand the issue about being caught up in the emotion of the issue and for a lot of people and i respect their opinions this is still a very diverse issue. It is. Dave, thanks so much, ceo of Stonegate Bank. Still within cuban families today, there are divisions about whether or not one should go back to cuba. Brothers and sisters will not talk to each other over that, how they come down on deciding whether or not to go back and visit the island, still very contentious. Even just to visit. Thats amazing. Wow. Michelle, thank you. Were just about approaching 2 00 here on wall street. Look at this. The dow is in rally mode now. Higher by just about a percent. And can you believe that it is now positive for the year. The dow had been down as much as 11 this year. Look at what is fueling the gains at this hour. General electric, boeing as well as procter gamble, all up more than 2 across the board. Were watching very closely the s p 500. It is at its highest level of the year, a whisper away from turning positive for the First Time Since 2016. And right now the s p 500 is up 1 on the week and just off by. 07 for the year. Oil, look at this, above 40 for the first time in 2016. 07 . Can you be more specific . Were keeping tabs. Lets drill down on one dow stock in particular, nike. The fourth best dow performer this hour. Theyre announcing a new product line taking us back to the future. A movie reference. These are selftying sneakers. Sarah eisen spoke with nike ceo mark parker. I think there is a wide rank of people that are really interested in this whole selflacing adaptive performance. You have the sneaker heads who are all over it. This has been a buzz for them for years. There was a writein petition to nike to power through and get the power laces in a product. So it is great to be able to put a product out there that is a step toward the future of adaptive performance. So, tyler, if your shoe comes untied in your selfdriving car, dont worry, the shoe will tie itself. If the shoe fits. From a stock perspective, the much bigger nike is acting like the up and coming star here. But under armour has scrappy fight in it left. On a year to day basis, that stock making a move to catch up. If you had to pick one, which one would be the better buy for your money . Making the case for nike is Karina Friedman and here to talk about under armour, susan. Why is the stock still worth our viewers money . A couple of trends to point out. Number one, footwear is outperforming apparel and so nike has the bigger percentage of footwear versus under armour and we think there is pricing resiliency in the category and the apparel segment has been a source of inventory glut, a lot of lower price ed competitors coming into the market. Number two, valuation. We think that the nike multiple is appealing, compared to the multiple for under armour. Should we get a pullback in, you know, there is a lot of concern maybe this athleisure trend has run its course. Lastly, you know, we think the runway for under armour remains significant. But we think that nike in the near term has a nice catalyst with the olympics where their distribution globally is much more positioned to take advantage of the sales resulting from a very favorable time zone for the olympics this year which will increase we talk a lot on this network about global concerns, nike being bigger, more global. What is the geographic breakdown u. S. Versus the rest of the world . If the rest of the world, china, europe, whatever, were to slow down, would that not have an outsized impact on nike . Sure, nike is diversified. China slow down might not have as big of an impact on nike as it would for under armour. But theyre diversifdiversified, u. S. , theyre flipped, so europe and international is about 60 , u. S. Is 40 . Under armour more geared toward domestic market, 80 20. And so most of the slowdown in athletic has been in the domestic market. So we think that has a bigger impact on under armour than nike. Thank you. Susan anderson, she doesnt hate under armour, shes worried about the valuation. You are not. How come . Yeah, well, i just see much more accelerated both for under armour versus nike, given their smaller size, she talked about footwear, thats a category, under armour is just now getting into. Nike already has over 90 share in basketball, almost 40 share in running where as under armour has less than 2 share in basketball and just 5 share in running. The runway for growth is huge for them. Especially with the sponsorship, that has really broken them into the basketball category. I think thats big for them this year. Also on the penetration side, less exposed to international, nike is more exposed, more reliant on growth in areas like china. I think that could pose a risk to nike where as under armour very, very tiny share in most of these reeggions and acceleratin the growth there, a slowdown, i dont think there will be an impact. Steph curry is off the hook. Could be the greatest shooter in the history of basketball when all is said and done. Could he have a michael jordanlike impact on under armour if he keeps playing the way hes playing . Yeah, well, thats a huge opportunity for under armour. If you look at the sales of jordan, theyre about 2. 6 billion in shoes alone in 2014. Even lebron was 340 million. We estimate curry was probably 30 million last year. The runway there is enormous for them. Even if they cant get to the jordan level, just getting to the lebron level which would offer huge Growth Opportunity for them. Looking at nike and under armour, good cases for both. The headline can be an ad for my generation, got to be the shoes. Got to be the shoes. Can you imagine how strong the jordan brand still is what is it more than a decade . Well over a decade since he retired. Amazing persistence there. A lot of green on wall street on this st. Patricks day. Stocks at session highs. And lets get to art cashin who usually wears green on st. Patricks day. There is the elf of all elves, art cashin. Why is this rally seemingly picking up steam . Well, it is continued weakness in the dollar. It spread into oil, put a bid under oil all day. We got oil up above 40. Thats kicked in a little bit more. It spread through most of the commodity sector. So i think were going to have to pay a little retribution for this at some point because i cant picture the bank of japan and the ecb quietly letting their currencies rally so much against the dollar. You saw that with weakness in the dax and the automobilemakers, et cetera. This is a huge celebratory rally here, theyre talk ing about coming around to the streets thinking they they were talking about four raises. The streets said probably no more than two. And if i heard the transcript correctly, i think at one point chair yellen said i would look for another rate move this year. And another would be singular. That would mean only one. Only one. A celebration of the fed going on there. And celebration of ireland as well. Art cashin, thank you very much. Were going to bring in bob pisani to chat a little bit more about this rally under way down at the nyse. The important thing, i think you put up that lower third, 2043, that was the old close, that was the december 31st close. Lets not quibble. Were here now with the s p 500 now joining the dow. We have what i call and art mentioned it a moment ago, the weak dollar winners that are really propelling the market. Ive been emphasizing caterpillar had a terrible profit warning, reduced their profit 30 . That should be down today. The stock is up 2 . Thats what the weak dollar does. Free port is up another 7 , huge yesterday. Ill c alcoa, devin energies. Were seeing as a result of this expansion, this rally, an expansion of new highs, nearly 200 new highs at the new york stock exchange. A number of big consumer names sitting there, new highs. Coke, kimberly clark, general motors. These have been the ones out there for a long time. Were starting to see some industrials at new highs. Illinois tool works, for example, on this recent strength in the last day or so, sitting at 52 week high as well. I think we might see a few more of those in the next few days if this continues. Finally note, if you want to look at the flip side of this, tyler, pharma is having a little tougher time in this environment. So lilly is at a 52 week low. And some big biotech names like regeneron and alexion at lows. A news alert. To dominic chu. Were talking about Pershing Square holdings, the publicly run fund entity run by bill ackman. S p, Credit Ratings agency, placed Pershing Square holdings, again, the publicly traded company, they put their bbb rating, currently investment grade, on what they call credit watch negative. They say they have done this largely because of the precipitous decline in the market value of Valeant Pharmaceuticals which we know is one of the top holdings here. As a result, they say the debt to total assets ratio has increased. Were placing our bbb issue or Credit Rating on watch negative. They also say that it reflects the funds weak Investment Performance which resulted in higher leverage. We heard earlier they dont use, bill ackman in this particular unit, doesnt use margin type investing or margin type tools here. An interesting move here, Credit Ratings agency saying theyre going to put it on credit watch negative. Scott wapner had spoken to ackman directly and made clear that they did not use leverage. In theory, this ratings move or this potential ratings move would not necessarily have an impact on the day to day business of pershing, i would imagine. Again, it is interesting also because as we put up those charts of valeant and what not, this publicly traded entity is listed on the euro next in amsterdam. A european traded entity here for the company. An interesting move here with regard to a Credit Ratings agency, now weighing in on this particular companys performance. Thank you, dom chu. Want to bring in meg terrell. We were commenting on this. As you see there, shares are tanking again today. This is what were going to break in here. The s p turned positive for the year. So we have crossed that milestone just now. Were joining the dow in terms of turning positive for the year. The s p 500 is positive now for 2016. Well see if it can hold that going into this close today. Continuing with this valeant story this is what s p did yesterday to valeants debt and now there are reports that creditors might be demanding new terms which really impact the Business Model of valeant. Yeah. This is the debt of valeant is backing the story with valeant. The key date we need to focus on is april 29th. They have about 30 billion in debt because they havent filed their 10k, they have to negotiate with creditors to try to extend the deadline or they have to file a risk default. That will be a near term catalyst for valeant for hearing about how those negotiations are going. Other things that people are talking about are potential asset sales here. Valeant said they could sell noncore assets to pay down debt more quickly this year. Thats something that creditors said could be a positive thing. A note on this, speculating on what they could sell. Adding up to 6 billion worth of assets they think could potentially be divested, including assets like the neurology business, eye prescription drug, surgical tools from bausch and loam. One other we didnt fit on there is the female viagra drug. They think it is only worth 360 million now. They can only sell 4 of total assets in any fiscal year to pay down debt. Theyre a little handcuffed too. Potential limitation there. Yeah. If bmo estimates their assets, it is still more than a billion dollars in assets. Meg, thank you. Lets bring in les with esqui esquire e esquared asset management. Do you see the same sorts of alarms in other companies and ill name some names because they have been taken down too, like a malloncroft. With respect to valeant, you referenced the female viagra for a billion dollars. We knew that would be a terrible deal and it sort of struck us as desperation move on valeants part and they subsequently missed earnings which confirmed our view that the underlying business was weak. With respect to others in the industry, i think that what we have now, especially pharma, is basically without pricing, the ability to price is branded generic. The multiples for all of these companies who have engaged in this sort of Business Model have to come down and youre seeing a remarkably rapid rerating of the sector. Do you think there is more rerating to come in the sector . I do. It seems like the game is up. First of all, the congress is putting through a law that will make monopoly generics, well, basically eliminate them. And the pbms have caught on to the pricing pressure and should say the pricing increases and i dont think any of their participants are going to blame them for kicking these drugs off the formumlary. It is the worst performing group year to date. That is your sectorfolio and yo value. Why go to them as opposed to big cat farm wpharma or biotech . With biotech, it seems a bit overvalued to us. With Something Like Services Like the managed care group or the devices, you have positive tailwi tailwinds, the devices, removal of the Obamacare Tax and nice volume, increases, pricing pressure in that group seems to be ebbing a little bit. Thats positive. Especially year on year. And the managed care group again fundamentals seem in tact, so health care, while it might seem weak, is not a homogenous sector and there are pockets of Interesting Companies there. Certainly are. Thank you. Well, were, tyler, in rally mode. We are. The dow, a couple of sort of very interesting milestones on this st. Patricks day. As everybody injects liquidity. The dow turning positive for the year, about two hours ago. You see it. A rally that is gaining steam. And just minutes ago, the s p 500 turned positive for the year. Oil traded briefly above 40 a barrel. You see the s p. I believe 20. 43 was the tick point into which we get into positive territory for the year. There is west texas crude at 39. 96, briefly above 40. Keep it here. Were all over this market rally when power lunch returns. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. Time for trading nation. Lets look at the market, visavis the dow. It is turning positive on the year. You might have heard that once or twice today. Get this, if it were to close the quarter right now, this would be the biggest quarterly comeback since 1933. Any 1933 reference can be interpreted different ways. We got aaron gibbs, specializing in the fundamentals. Rich ross looking at the charts. I know you like to dig into earnings and numbers and get real specific and thats great. I want to talk macro. I look our screens here, dow is up, s p is up, gold is up, silver is up, copper is up, hens are up, hogs are up, emerging markets are up. Where is all the money coming from all of a sudden . I think it is really about today, it is about the fed saying theyre only going to raise rates two times this year versus the expected potential four. It is going to be cheap cash for the rest of the year. Another thing i think is really pushing it, a lot is also the oil story. If oil can get above 40 and stay above 40, that really helps overall the Earnings Growth. So this is looking pretty good right now. And the dow particularly, i like to talk about earnings, brian, but the earnings both for the dow is an expected 33 for eps growth for this year. Really good earnings story, good growth. And this is looking for the economics overall looking very good for the year. The amazing thing about what youre saying is, of course, this is something we talked about for a year and a half on this program, which is low oil is great when it come to gas savings. Thats nice. But we have argued that the kind of drop we had was bad for the overall market. Youre saying that oils recovery is a positive. Is this home because of the earnings contribution from the oil and Gas Companies into the overall market, erin . For a majority, yes. It is because it is the energy story that is really holding back the earnings. If you x out earnings, for the s p 500, you go from Earnings Growth of 1. 5 , x out energy, looking at 5 Earnings Growth. Thats how much is weighing on the economy overall. Not to mention all of the additional spend because of those companies. So it is important. Yes, we all love cheap gas and that certainly helps with consumer discretionary. But it is a much bigger impact when you have the entire sector of the industry growing. Erepublicin, to rich ross no. I spoke to you last nature on fast money. You said the risk reward, upside is 2 . Do you revise your forecast at this point to see where we are right now . Well, no. I would say it is only 1 based on math alone. What a day here. We have hoops on tv, st. Patricks day parade, the market is somehow flat for the year, just doesnt get any better than this. Thats part of the problem, the only problem for the dow. It just might not get much better than this. You bring up the chart, ill show you exactly what brings me to that conclusion. When you look at a shortterm chart of the dow, what do we see . We see essentially a 13 rally off of that Double Bottom for earlier in march. Very similar to the Double Bottom and 13 rally which ultimately failed miserably that we saw last october. In addition, we have taken out the 200 day moving average, tail end of the move, just as we did last october, november. You got another 1 to 2 after you broke above that level. At this point, were just about 1 over the 200 day, maybe even more at this point, melissa. So when we zoom out and we look at the weekly chart, i think im still staring at a six year bull market with a two year distributive top which marks the end of the bull market. Could be a continuation pattern to the upside, thats not my call. The fed raising the prospects of never raising Interest Rates again yesterday. And has really taken the starch out of the dollar. They didnt say theyre never going to raise Interest Rates again. Are you saying flat is the new up . Im saying up is actually the new up. You have to give credit where credit is due, but by the same token, we need to look at the move where we are. This market taught us one thing, not to get too bullish at the tail end of strong up moves and dont get too bearish. I dont think it is going to happen from here going forward. Up is the new up, flat is the new up. Down is the new i think down is down. Down is down. Down is down. According to fed, down is the new up. Theyre going to keep driving this keep getting more dovish, negative Interest Rates. Everything else goes up. We established everything is the new up. For more trading nation go on. For more trading nation, head to our website. Shes mocking you back. I think, i hope you understand my touch of sarcasm in the comments i made. I understand. I listened. May not end well. Coming up, the hunt for yield. Right now it is harder than the hunt for red october. With one fivestar fund manager shows you where you can get get this, guys, 6 on your money right now and apparently it is legal. Power lunch is back with that in two minutes. If youre an active trader, sometimes sitting on the sideline can be a very difficult thing to do. It is important to make sure you dont overtrade. In times of high volatility, you may want to consider trading less or reducing the size of your trade. And when things get really crazy, sometimes the best trade to make is no trade at all. Happy st. Patricks day. The dow and s p break into positive territory. The dow industrials up at 17,512. And the s p at 2044. 2043 was the break even there. Power lunch will be right back. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back to power lunch. Im sue herera. Here is your cnbc news update at this hour. House Speaker Paul Ryan is calling comments made by donald trump unacceptable. Earlier today, the frontrunner for president said there would be rioting if he wasnt made the republican nominee. Ryan also admitted there is a possibility the partys Convention May be an open one. And Angelina Jolie is in greece today hoping to raise awareness about the thousands of refugees stuck in a camp there. The actress also met with greeces prime minister. Big changes for seaworld. The Company Announcing it will end its orca Breeding Program making the current generation of whales its last. Seaworld has been under intense pressure from Animal Rights activists from keeping the whales in captivity. One Baseball Players retirement is sparking a discussion over family. He was told by the clubs management his son would not be able to spend as much time with him inside the clubhouse. He used to bring him to the clubhouse quite frankly. Getting a lot of twitter hits. Thats the cnbc news update this hour. Back to you, ty. A lot of money to walk away from. Family first. You bet. Oil trading above 40 a barrel for the first time this year. Final trades for the day are coming in. Bertha cooms is following them. Well see where the price settles. Here are the final trades, above 40 to close out the session. If it holds, it would be the first settlement above 40 a barrel since december 3rd for crude. Quite a ride. A confluence of events. We had the fed yesterday being very dovish. That has sent the dollar lower. We also have opec confirming theyre going to be meeting one month from today to talk about maintaining a freeze on production, also have got nonopec members like russia taking part in that. So that really framed that sort of bullish move that were seeing today. A lot of folks not sure how much more to the upside it will go. Nonethele nonetheless, well take it for today. Natural gas inventories today, a little bit more bearish than expected. But it was such a small expectation. The expectation was for a decline of about 2 to 12 billion cubic feet, below what it is this time of year. We had one below. Lets call it a draw. Natural gas riding up with the rest of the conflicts. Back to you. Bertha, thank you very much. Big day for oil there. Another market flash with dominic chu. The market again jumping higher the past hour. 9 out of 10 sectors posting gains. The only laggard is health care that moved up off the lows. Still down by a percent. Big losers include endo international, down 13 . That Company Forecasting First Quarter results below some analyst expectations. Other companies dragging things down. Eli lilly, malloncroft, express scripts. Health care the only index in the red and takes over, michelle, as the worstperform ing sector. Not everything behaves the same in such a diverse sector as health care. In todays session, seems like there are very few winners here. Only ten stocks out of 56 in the s p 500 Health Care Index are positive on the day. It is a bit broader based in terms of health care. It is so important because we have been talking about how over the past to years health care has been a big leader in this market. Devicemakers and pharmacy benefits managers, and it is classic pharma company. Not just one not just biotech. Runs the gamut for sure. Because of the nature of those particular companies, and the large market caps they have, it is the third biggest sector waiting the entire s p 500 behind Just Technology and financials. Obviously a very big, big, very big sector to watch here as we try to get out of negative territory for the year. They had such big runs for years. You wonder if people said, okay, we made our money in these pharmaceutical companies, maybe the rotating energy. You look at the stocks and energy. Im not talking about the small ones that have been almost decimated where you got a lot of shorts getting squeezed. Marathon oil, which is heavily shorted, up 57 in a month. Conocophillips up 28 . Hess up 24 . Chevron up 11 in 30 days. These are incredibly large moves for Big Companies and you i would love to dig into my point there and where is all the money coming from . Nothing seems to be sold. So looks like money is coming out of literally i hate that term off the sidelines, whatever the sidelines are. The money is coming from somewhere. Dom, thank you. Dom chu. Back to michelle at the nasdaq. Thank you. Were at the second cuba opportunity summit at the Nasdaq Market site. We did an exclusive interview with the founder of a band website in cuba. Leak a cra like a craigslist. But it is blocked by the cuban government. The founder of the website went into exile for years for fear he would face retaliation for the creation which is extremely popular in cuba and is accessed by cubans with proxy sites. Now he thinks it is safe to reveal himself because things are changing so much in cuba. Heres what he had to say to other startup entrepreneurs. Look, when i first found my first company, get in trouble with the cuban government. I found my second company, crowd funding platform, i get in trouble with the u. S. Government. Has been a lot of new developments that are making a lot of hopes of people in cuba and for the entrepreneurs like me that are trying to do to make a change happen in cuba right now. Only good news. The website that got him in trouble with the cuban government was one related to sending money from the u. S. To cuba. We were just showing you gentlemen here the economics professor at the university of havana. We go from ecommerce to neo classical economics, thats your specialty. A professor from the university of havana, do your students learn about the free market . Yes. They do . But cuba is communist . The program is very similar like other program in any university in the world. Maybe one of the difference is our student study around two semester of marxist economy. Marxist economy. Yes. The rest is very similar. We have to teach, microeconomic, economics, like other. What is the state of the cuban economy now and with this change that we see with the relationship between the United States and cuba, with the promise of increased investment, it is not apparent to a lot of people that the cuban government wants u. S. Investment. Does the cuban government want u. S. Dollars going into cuba . My personal opinion, i think the cuban government wants investment for every country. And why not for United States. Because for years they have said we were evil and were a problem and they have cheapened the enemy. But were changing. Today is different than three years ago. And countries are building a new relationship. It is important to receive and to have in cuba following that investment from the United States. Why not . Are there going to be more markets in cuba. Is price going to clear the market. Is the market going to be more used in cuba . Yes. We will have more marketing in cuba because this process that the government launch five years ago tried to give more opportunity for the people, not only for the not only for micro and median businesses. Businesses but for everybody. Market is an accessory and does that mean socialism is ending in cuba . No. Not really not. We have to be a new socialism. With market and planning and economy at the same time. It is difficult, yes, i know. Maybe it is only one in the world. Maybe. We are trying to do it. Why not . I think it is impossible. But if you achieve it we try to make possible. Well see. It has been very interesting to have you on. Economics professor from the university of havana. Thank you for joining us. Back to you. Thank you, michelle. For investor hunting for yie yield, gene tanuzo has some ideas he believes will yield up to 6 , 7 or so. We had tech problems. We hope to have him back here tomorrow. But in the meantime, we want to give you his list. Corporate bonds in the telecom sector, at t, strong and cable cash flow, attractive yields, longer end of the curve. At t, 30 year bonds, yield 5 . He also sees opportunity in energy suggesting Corporate Bonds from Kinder Morgan, plains all american, both yield between 6 and 7 depending on the maturity. I would say being wanting to invest in energy and being in this part of the capital structure is a safer way to do it. I think than the equity. I think for a lot of investors out there, you look at at t, the equity yielding about 5 . The decision is an interesting one now because the bonds are yielding 5 as well. Where do you get the Capital Appreciation . You probably get it in the stock, in that case. For my perspective, i want blue chip credits every time out. Every time out. So more along the lines of an at t. More along the lines of at t. You like Kinder Morgan an plains all american, two pipeline companies. We talk about the dividends. Sounds like the bonds for now are fine. And these companies will tell you, dont worry, were not directly exposed to lower oil, lower natural gas. Their customers have negative on the names. They have the ability to go, melissa lee pipeline operator, im your customer. Remember that deal we made, i was going to pay you x, i cant afford to pay x, i need to pay x minus 25 . Something to think about with the pipeline operators. By the way, we hope to see gene tomorrow to get more details on the 6 and 7 yield. Up next, why this under the radar name is taking off now. Our cosmetics line was a hit. The orders were rushing in. I could feel our deadlines racing towards us. We didnt need a loan. We needed shortterm funding fast. Building 18 homes in 4 ½ months . That was a leap. But i knew i could rely on American Express to help me buy those building materials. Amex helped me buy the inventory i needed. Our amex helped us fill the orders. Just like that. Another step on the journey. Will you be ready when growth presents itself . Realize your buying power at open. Com stock number one, chipotle. In the news lately here. The already bearish jeffries slashing their price target more. They cut their target from 390 to 350. Thats about 30 below the current price. They already had a below the price target on the stock. In spite of heavy promessal efforts, the turn around may take longer than expected. They say even if sales bottom, they dont think the longterm implications are fully priced yet into the stock. Super bearish on chipotle. The cfo said yesterday as much as 7 of the Customer Base may never come back. So a win for jack, jackinthebox. A lot of people are saying panera bread is the winner here. Second stock, viv solar. Sell rating, the price target is 3 bucks, 17 below yesterdays close. They leverage in the high growth u. S. Rooftop solar space, which is good, but an uncertain path to recovering lost market share. The companys near term financing needs, two days ago, they posted disappointing earnings. Using the words etch haveryo hates to hear, cash burn. Sherwin williams, long bow research raising their raiding. They see a strong painting what did you get me for painting season . A brush. Thats a perfect gift. Coming up, 6 to 7 growth in paint stores and also cite the same thing as another upgrade a few weeks ago from citigroup, a bigger presence through the hgtv line of paint products. Higher volumes, filling margin expansion. Their target on sherwin williams, 340 a share, 18 above the current price that we talked about. Citigroup upgraded shw. They had soft guidance, but ever since then, a straight shot higher for the stock. It is up 17 since then. Color me impressed. Fourth stock, elle brands. Goes to 90 from 103. Credit suisse cautious on traditional specialty retailers with outside store footprints. More than 3,000 stores. 90 of the u. S. With plans to grow Square Footage in 2016. Credit suisse cutting estimates for 2017. We talked about the worry about being overstored in mesh. You look at the niche retailers online, they want to sell you underwear directly or socks directly and just look at anybody with a lot of store and maybe just dig in the hood a little bit. The under the radar name, install building products, ibp, a columbus, ohiobased insulation installer. They do things like garage doors, gutters. Sun trust robinson upgrading to a buy. They like the momentum theyre seeing in housing, especially, melissa, the shift to more Single Family homes. They routinely grow units ahead of gains in Housing Starts acording to the analyst. Eight times multiple, which raises the target. They got a 30 target, about 20 upside on ibp. Housing data good lately. Helping that stock. There you go. Your money, your vote. John harwood sitting down with house Speaker Paul Ryan and were going to have the highlights of his speak easy coming up next. Theres no one road out there. No one surface. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. Welcome back, im melissa lee. Caterpillar shares higher about 2 despite a weak outlook. The heavy equipment making expects to miss street estimates but sticking with the full year forecast. Lands up, missing profit estimates but revenue did beat. In shares of michaels stories soaring almost 10 higher. Welcome back to power lunch. John harwood sitting down with paul ryan to discuss tax reform, budget deals and how hell work with the next president , whoever that may be. John harwood joins us now with more. You know, a lot of republicans worry about how donald trump might rebrand the gop in a way they dont like. When i sat down for a Saint Patricks theme speak easy, he said House Republicans have been working on insurance policy. Traditionally when a party is not in the white house you have a lot of voices in the party but all that gets clarified and the party gets defined once you have a nominee and the party accepts that the definition of the nominee puts on the party. Will that happen this year . Before iowa caucus started and the field even firmed up as to who was necessarily running for president , we made a decision here in the house to do things differently this year. This has nothing to do with any particular person running for president. We made a decision based on my experience in 2012, if you wait until the nominee is selected and then run together and present a unified front and platform to the country, its too late by then. If you wait until august or september, to then tell america, heres who we are, it gets lost in the shuffle and narrative is set. You and your House Republican colleagues are not going to be defined by the republican nominee for president. What we believe we owe the country because we are the Opposition Party and dont think country is headed in the right direction is a very different direction. We need to work on those ideas now and roll them out in the spring to spend all of our summer and all of our fall talking to our fellow men and women in the country and citizens and giving them a clear choice. This is not an attempt to differentiate ourselves with the nominee. Ness our attempt to lay the field for whoever the nominee is so that the Republican Party is the party of ideas and solutions taking our conservative principles and showing what they are. Moving on an independent track . Yes, we believe whoever our nominee will be comfortable with where were going because were using our partys principles to assemble this agenda. Next hour on closing bell. Well hear from paul ryan on how hes hoping, really really hoping that voters will break the string of divided government. Talk about the connect there might be not just who the candidate might be, i. E. Mr. Trump and republican platform. I think parties have gotten more ideologually homegenous, there hasnt been disagreement with platform and that makes trump interesting, he defied issues like trade and immigration and entitlement reform. Think youll have the Party Platform that will be informed by the nominee but likely to have a lot of stickiness in terms of what the past platforms have been. It might not be a trump platform per se . I wouldnt think the Republican Convention will radically change the platforms weve gotten used to. John harwood, thank you very much. The dow rallying erasing all of the gains for the year the s p 500 turned positive for the year but just slipped back negative. Really basically on the dead even spot at 2043. Power back in two. The intelligent, allnew audi a4 is here. Aint got time to make no apologies. Steve, other than making im here atme move stuff,rade trader offices. 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. Td ameritrade. The sectors are doing well and they are, nine of ten are higher. The only negative sector is health care. Weve talked a lot on the show about the s p up for the year, down for the year. We havent factored in the dividends, it is pretty up for the year. Yes, always have to count the dividends. The absolute return up down best performer was fedex, right . Are they delivering . They are delivering today. Apparently today they are. Thats helping transports overall. The transports today one of the leading sectors here if i can pull it up on my screen, it is up about 3 , 2. 9 . Fedex leading the way the xal, Airline Index is higher by more than 1 . In spite of the big rally in oil today, transport still managing to do quite well. We should also what we should also point out is that were celebrating the s p and dow going into positive territory into the green. On this st. Patricks day, appropriately, but the nasdaq and russell 2000 about 4 off. With 15 seconds left to go in the show, from all of the sullivans out there. My grandmother Agnes Mcbride says the same thing. Closing bell starts right now. Hi, everybody, welcome to closing bell. Im kelly evans. Happy st. Paddys day, kelly. The family was welsh on my paternal grandfathers side and maternal grandfather had some irish in him. This guy by the way knows more about it than anybody so like i said im bill griffeth, also welsh. Well see if the stocks can hold on to gains. First we have breaking news on oil and gasoline. The