Transcripts For CNBC Power Lunch 20170328

All right, thanks, melissa. As you can see behind me stocks are back in rally mode after the highest Consumer Confidence reading since december of the year 2000. The dow aiming to avoid its first nineday streak with the big movies that year, 1978. Why pimto . Why not . The s p 500 trying to dodge an eighth loss in nine sessions. Check out the big movers, carnival cruise, it tesla rallying 3 , chinese internet buying 5 of tesla, and spice maker mccormick down about 2 after a mixed quarter for the company. Tyler, i speak for everybody when i say remain calm, all is well. All is well, brian. Thank you very much. Welcome, everybody. Im tyler mathisen. Here is what else is happening at this hour. Brian highlighting that Consumer Confidence number rising. What else is rising . Home prices. The latest case schiller index sees prices up about 6 from a year ago. Twitter Ceo Jack Dorsey brushing off calls to step down as ceo in an interview with cnbc Europe Dorsey saying he will do whatever it takes to make sure twitter and square, his other charge, will do well. And weighing whether to take an investment back. However, according to people familiar with the matter, the investment could dilute backers such as apple. Melissa . Thank you, tyler. Lets get to the big news. General motors rallying more than 3 . Hedge fund titan einhorn putting pressure. Speaking about it a moment ago. Leslie has all the details on mr. Einhorns push. Leslie . Thats right, melissa. Speaking with scott wapner earlier einhorn compared his plan to ice cream. There are two flavors of investors, he said, the ones who like dividends and the ones who like Earnings Growth. Because the two types of investors are mixed in gm stock, it has traded at a discount to its intrinsic value, he said. He thinks that by separating gm stock into two classes, what he calls dividend shares and Capital Appreciation shares, gm could unlock between 13 billion and 38 billion in value. Our idea is essentially to pay the same money to the same people, just do it in two different times so everybody can have what they want. It doesnt change anything else thats going on with the company. When you do simple valuation analysis, if you implement ed this plan, which we expect that they will, youre going to unlock a tremendous amount of value. After seven months of discussions with einhorn and his firm Green Light Capital gm has dismissed this plan. The company in a Statement Today saying that it involves risks such as a ground grade in it gms Credit Rating and governance challenges from having two classes of stock. Now einhorn told cnbc he has submitted notice to gm to nominate directors but hasnt determined how many or which ones yet. Guys . The issue, though, with the two classes of stock is that the dividend shares, they only have 0. 1 of a vote. The regular gm shares, if gm wants to cut dividends the people depending on the dividend have no say. Exactly. And weve seen these multiple Voting Rights and the multiple share classes before but weve never seen anything like this where the difference in Voting Rights also coincides with different types of investors being dividend investors as well as growth investors. That was one of the main concerns gm highlighted in terms of governance issues. A company is what a company is. You cant go to gm and say i want to buy a chevy cruz but call it a camry and in colors you dont offer. David einhorn can make a case for value but to go in and push around a company like gm and say you need to change the structure of your stock. Thats whats so interesting about the strategy. Theres no operational push here, no operational changes that hes pushing for with this company. Its more on the he just wants a different cone of ice cream, as he said best. Sorry, youre getting vanilla. We should call it power dessert. Youre getting none and like it. Its financial engineering, part of this, to unlock value. I dont use the term. Gm is not the only automaker in the headlines. Well dig deeper in a moment. Rival ford announcing a 1. 2 billion investment into three michigan factories, driving shares higher up 2 . Here to break it down is the auto analyst. Brian, great to have you with us. Good afternoon. What do you make of einhorns suggestions to gm . Without getting to the merits of the specific financial proposal, i think it highlights the valuation discrepancy there in the market which is gm and ford as well are undervalued on their dividend potential as well as where the auto cycle is and longer term about their role in the eb and the autonomous world will be. Do you think investors out there are over calculating or over including peak auto and underestimating their role in the eb auto cycle . Yes. Theres a couple different issues there. The auto cycle we think will continue on for a couple more years in the mid17s. We think with increased pricing pressure both automakers look relatively cheap. And in terms of the longer term its not just tesla that will be there in the eb world. In that particular case gm in particular has made some interesting investments between its ride sharing activities and its electrification and autonomous activities. I dont get it, though, because gm and ford havent done well at a time they should have done well, when financing was easy, when their autos rolling off of the sales lots left and right, and now were coming at a time where perhaps were seeing already auto prices are declining that could put pressure on new ougauto prices financing terms wont be as easy these days. Right. They performed well operationally. It has not, as your chart points out, been recognized by the stock market. The key thing this proposal highlights what is the commitment to the dividend in the down cycle . Ford has been firm that it would pay the dividend as gm has and really if you think the dividend is safe through the down cycle then the strong case of shares are undervalued. Brian, well leave it there. Thanks for your time. Consume earp confidence coming in with a monster beat. Get this, Consumer Confidence surged to its highest level since the year 2000. Stocks getting a nice boost from it. We are at session highs. So is the socalled eightday skinnydip done . Lets check in with bob pisani. Referenced the skinnydip because we were down eight days but we only fell about 2 in that time. It was a slow bleed. Reporter you rarely see, brian, Consumer Confidence move the markets. It did today. Stocks moved. Things turned around. The dollar got stronger. Tenyear yields got strong er. Oil provided another boost. You see where the markets are at the highs of the day. Take a look at the sectors. Banks, industrials, materials. We used to call this the trump trade. A lot of guys are saying stop calling it that. Lets call it the economy is improving trade. A whole move in the last few days to get away from washington and focus on the fundamentals and the earning situation. A big note out late last night, very typical example of this. Fundamentals over politics is what we want. The indicators are strong. We saw that with the consumer numbers. No reason to walk away from the trade and buy on weakness. We talked yesterday, guys, about the great hope on earnings here up 10 for the First Quarter. It would be the best quarter in nearly six years, revenues so far up 7 . Best quarter again in nearly six years. The numbers are very good here. Trading trends now, demand has been weak and volumes light. Bottom line is were approaching oversold conditions. You can see it today. People seem to be interested in getting back into the markets a little bit. If you look at these travel stocks today we have historic highs on the big names right now. Carnival, price line, marriott set historic highs. 52week highs. Everybody is out looking to travel right now. Back to you. Thank you very much. Bob pisani. Whats an investor to do now . Chief Investment Officer of Northern Trust wealth management, welcome. Good to have you with us. You heard what tobias said, focus on the fundamentals . Does he have that right . And what are the fundamentals saying to you . The fund aamentals are good. We do see an improvement in the macro picture and its interesting because this improvement in the mack copicture does buy time for the administration to get their act together, to get some of the pro growth policies in place that the market has been looking for. Within a few days well start seeing a trickle and torrent of earnings reports looking backwards into the First Quarter. Number one, what do you expect there and, number two, what do you expect about corporate earnings in the u. S. As we move through the rest of the year with the uncertainty about tax reform in the stew here . Lots of uncertainty around the tax impact, the potential impact of tax reform. Even without tax reform we see a 10 Earnings Growth here in the u. S. , and that is without making any heroic assumptions. We have a couple of improvements in energy and a 5 organic growth rate for the s p 500. You can get there pretty easily without tax reform. Meaningful tax reform can have a very large impact on bottom line results. I dont think thats priced in right. One more in and then ill be quiet. Were going to hear from Stanley Fischer on the fed. How important is the fed this year . What do you expect him to do . Is it a serious impediment to the market moving forward or not . Well, the fed is play iing i right at this point. Slow and steady, data dependent, very patient, waiting to see the whites of the eyes and the stainability of the recovery and growth and inflation outlook, and i think thats what the market expects. So any deviation from that in terms of becoming more aggressive, i think, would be a negative surprise. We think the fed will hold true to their word and continue to take a gradual pace to normalization. Can you answer maybe the biggest debate that is out there now and certainly the one were having internally the most, if you had and you have to pick one. Dont give me this 60 40 stuff. What is more important for our viewers money, earnings, fundamentals, et cetera, or dc . Earnings. Why . Because long term fundamentals drive stock prices. Short term the political noise can impact certainly sentiment. Weve seen that tax reform would theoretically help earnings by reducing obligations. Tax reform could help earnings. As you said, that would manifest in earnings, right, so to the extent earnings are positive and that the fundamentals show up and, you know, tyler, you asked about First Quarter earnings and what we look for is more signs of optimism. You see the sentiment indicators, small businesses, large businesses, Consumer Sentiment comes in it well above expectations and we see the word optimism being used frequently in Analyst Reports and ceo reports. Were looking for it to be in stronger fundamentals that will ultimately drive stock prices. Now volatility around the Political Landscape is inevitable. Ultimately fundamentals will rule the day. Katie, thanks. Great as always to see you. Katie nixon. We are just Getting Started on power lunch. What companies and stocks could be the big winers in trumps plan to roll back epa regulations . Well name names. Plus, a new pair of shoes and a bullish call on nikies. Should you just buy it . Later on, one of the worlds biggest gold koips just stole friend a museum and, get this, police say the genius thieves may have simply climbed in a window using a ladder. More details on the heist of the century coming up on power lunch in two minutes. The command performance sales event is here. Experience exceptional offers on our most refined models ever. Get up to 2,500 customer cash on select 2017 models for these terms. Experience amazing at your lexus dealer. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . 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. All right, folks. Lets take a look at the dow industrials pushing toward daily highs at 20,675, up about 125 points. We havent seen that kind of rise in quite a few days for the dow. Multiday losing streak there. About twothirds of a percent higher. S p 500 also about twothirds of a percent higher. And the nasdaq a little less in percentage terms. Lets go to deirdre for a news alert. Uber releasing its diversity report, a report weve all been waiting for. Here are the numbers. Gender overall, 36 are women. The percent of women in technical roles which include engineers just 15. 4 . That is a hair under its competitors. Over at facebook, google and twitter. Also giving us an updated race break yawn, caucasians topping the list followed by asians at 30 . Now when it comes to leadership roles, 22 were women and almost 80 of the Leadership Team was caucasian. Ceo Travis Kalanick admitting theyve been too slow in publishing numbers and the best way to demonstrate our commitment to change is through transparency. They also included here in the report that 15 of its employees are under work visas and this, of course, comes as the Ride Sharing Company is embroiled in controversy. Thank you, deirdre bosa. Yum brands up. Sitting down with the ceo greg creed. Here is what he had to say about playing catchup on the tech side of the business. I think we missed the plot a few years ago that food had gone from food is fuel to food is an experience and part of the experience is making it easier. This whole Seamless Society we now live in, we were a little slow to catch on to that. The most important thing were trying to catch up quickly not just on pizza hut but kfc and taco bell. Shares of darden surging more than 8 after reporting better than expected Third Quarter earnings and giving the street a full year profit above estimates. They also announced theyre buying cheddar, scratch kitchen for 780 million in cash. Have you been at one of their season 52 restaurants . I have actually. Theyre great. Theyre always full. Ive stepped a foot in a couple of them, 5 30 on a monday. A specialty restaurant. Theyve done well. Some people think that theyre ugly, some people think theyre cool, but the market thinks they will be a hit. They are that. The new nike air max 2017 shoe. It has a unique sole. I have a unique soul. You really do. Nike stock having a good year, too, up 11 . Here with more on the company and why he remains bullish, s simeon, its a running shoe with a funny looking sole. Unlike tylers wonderful soul. Why are you so bullish on nike . Hey, guys. Good to see you. Ill apologize for the amount of koolaid im probably about to take down, but this shoe symbolizes a lot of the conversation weve had about nike in general. The reason we like nike, the company, they have the willingness and the ability to spend. And in this world of retail commoditization whether its sweaters or really anything across the board we keep talking about this notion of the inability to take price. They differentiate themselves on technology. The technology spend, call it very low single digits, which is still a nice amount of dollars on that base, but its all about marketing. We know how much the biggest operating expense for nike and the rest of the group is that marketing element. Its 10 of sales. Is that shoe big enough to move the needle . The reality is nike is the amount of launches that come out, every launch matters and every launch doesnt matter. They came on the Earnings Call and talked about the space jam 11 as being the number one launch of all time. Talking about the 11th in a series and now were talking about the 30th year of air mack, it shows for the staying power and how long the halo you want to keep creating. Whats interesting about this shoe and air max in general they literally took the sole, the technology, and made it visible. This seeing is believing idea that you can take technology but it transpose that is and tells the consumer this is what you want to buy. Question, can i see air . Can air be seen . Were talking about the sole here and it fits together to me. Is this a branded shoe in the idea that it bears the name of some sports star or some runner . What is it . Is it a running shoe or is it a line of shoes . Whats going to get my 11yearold to say i want that shoe just the way he says i want the kyrie or the lebron or i want the jordan . So we can ask the people that helped sell it out yesterday at certain stores. It went. And i would say yes to all of the above. Its a running shoe. You have in addition laceless, without shoelaces, that was a fashion shoe. So this idea of having, again, that 30th lebron 14s, space jam 11s this becomes a brand. They turned the jordan shoe into a brand that is larger than a lot of companies we look at. So from that perspective i would say yes to all of the above and the reason that your children will want this is because that marketing element teaches them that either theyre going to be a cool factor or convince them theres Something Else there. Its going to be the hot shoe. In terms of aleafing the concerns wall street might have in futures orders down to basics simeon, is this shoe going to help on that . They need to hit those metrics the next time they report. Is it doesnt matter how cool the shoe is. I guess it matters how cool it is in that it drives sales and youre right. Were talking about a stock not just the company. The stock does have to work and beat our numbers. Whats interesting about that point is it does go back to the fact, the conversation we had previously where at the end of the day valuations are somewhat decoupling from stocks so this group of consistent Consumer Companies are earning the ability to, if you believe theyre going to compound, its hard to sell that story. Did i see that you have a price target on nike . You say buy it, right . You have a price target . I do. Its 60. What i would tell you, it doesnt look like that much. It doesnt. It continues, which i assume was the leading question there. Thank you, tyler. You read my mind. If i was there i would fist bump you guys. This is a price target that likely weve seen right across the board. And the reason you cant come out and give this this meaningfully higher price target right now is if i put that on you, you would say, really, are you going to spend 25, 30 times earnings. What happens is the street continues to hover around the few consistent companies where a lot of the companies that we talk about, the off price companies, theres a lot in this group that are trading at meaningfully higher multiples and, conversely, a lot of companies you wouldnt want to own that are cheaper than theyve ever been. I always enjoy talking to you. Can i get the shoe in other colors than red, do you know . There are a lot of color waves. Lots of different reds. Yes, different colors. Okay, great. Simeon, thanks. Good to see you. Appreciate it. And one of the worlds biggest gold coins has been stolen from a museum in germany. Wait until you hear how big it is and how they got it out of there. Its like a canadian, some kind after maple leaf. Th passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. Medicare doesnt cover everything. And like all standardized Medicare Supplement Insurance Plans, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com a massive, and i do mean massive gold coin was stolen from a Berlin Museum yesterday. Nicknamed big maple leaf, it weighs about, are you ready for this, 220 pounds as the die a. M. Te diameter of 20 inches, a face value of about a Million Dollars. It would be worth more than 4 million at market prices. Police said it was probably stolen by a group of thieves. Oh, yeah . Enter the museum undetect ed through a window. Possibly with the help of a ladder. Love it. Its so basic. And they lock their windows . Through a window. I love the story not because im glad the thing was stolen. I hope they get it back. Its a valuable coin. Do you think its melted . Everything is cyber hacking and lasers and drones. Hey, lets get a ladder. Theres a window open on the second floor. Now lets get a pint. Get more than that. All right, on deck, d. C. Takes a rare breather. The markets get to focus on the fed. We have got a huge interview coming up with fed vice chair stan fischer. Its a biggie. Steve liesman and stan fischer coming up. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. Usaa gives me the and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. Hi, everybody, im sue herera. Here is your news update this hour. Amazon says its reached a deal to buy the Largest Online retailer in the middle east. Souq. Com has over 45 million visits a month and sells products in categories such as consumer electronics, fashion and beauty this is amazons first push into that region. A hero for saving a Wounded Police officer in last weeks london terror attack returned to work today. In an address he said he was one of many that stepped forward to help that day. Recalling more than 1 Million Pounds of those Chicken Nuggets after consumers found metal objects in them. They were produced between september and march and sold by several retailers including walmart. And europes most active volume kay know is putting on quite a show. Take a look at that. Bright red flows of lava continue to pour down the side of mt. Etna after a series of eruptions which began last month. Thats the news update this hour. Melissa, back up to. Stunning photos. Strong Consumer Confidence data fueling gains. Jpmorgan and lehman leading the way. We have s p financings at session highs. Energy materials among the other leading sectors. Apple, meantime, were watching that one hitting alltime highs. A note saying the firms most bullish scenarios have shares hitting 200 a share over the next two to three years. Iphone growth must continue beyond 2018. The company must create new product categories and also buy back more than 50 billion in stock. Sears, meantime, soaring to the tune of 14. 5 . Buying nearly 526,000 shares just last week according to a filing. Also a sears board member. Investors are looking for clues on raising rates this comes amid uncertainty on the president s agenda. Right to washington where reporter Steve Liesman has a huge interview with the fed chair advice stan fischer. The big news was not the recent price hike but the fail europe of the Republican Health care bill. How closely are you at the fed watching those kind of developments on the fiscal side . Were watching them very closely. Theyll certainly have an impact on what happens on the economy and theyll certainly probably go through that have an impact on our future actions. Did what happened last week change your calculus what is likely to happen when it comes to more significant fiscal policies like tax cuts . It may change my internal calculus but in terms of what we do which is to say what will we do if a or b, it doesnt change very much the things we look at. The fed has taken a wait and see approach, is that a better bet given what happened last week . Its the sensible thing to do. You get out there and say i expect a deficit or such and such size and tax cuts. It comes from the administration. Itll go through the congress. Itll be different than what went in. And we dont i think its a good way of doing it. Have you personally in your own forecast Incorporated Fiscal policy . A small fiscal expansion has been included in the forecast that we receive and, of course, in the plots everyone is making their own assumptions about that. What im trying to understand is the average fed member now forecast two additional rate hikes this year. Does that include a large tax cut bill in there . They dont tell us. They tell whats they think is the apropropriate policy given their other expectations. We wont see a significantly large tax cut until 2018. We assume when theyre filling out the forms as to what they expect. Do you feel its the right policy to react once a bill is adopted, or should the fed be preemptive . You know, some bills when theyre presented have some impact on the economy immediately. I think that was the case with the early days of the administration. And so the stock market goes up and so forth. You take those effects into account. The policy hasnt been done yet. The expectation of the policy does. You dont have to put a huge weight on something that you dont really know is going to happen. We take it into account. More or possibly fewer . Thats my forecast as well. You know for sure that you dont get everything right particul particularly about the future. And you need to think about what happens if the economy is growing more slowly or faster. Which way are the risks in your opinion, towards more policy tightening or less . I think i think the risks are more or less balanced. Your term as a fed chair expires next year. Right. Vice chair. As vice chair. Pardon me. But your governship extends further. Have you considered staying on . Of course ive considered it. All the feds history and i dont have to make a decision about that right now. Getting back to the economy there was a piece in the journal an oped by robert barrel suggesting the u. S. Economy could grow 3 or 4 . Is that something thats within the realm of possibilities as far as the u. S. Economy . Well, that article said that the economy could grow at 3 to 4 for a couple of years. It was about what would happen if we reduced taxes if there was an infrastructure program, et cetera, et cetera. And then wed get a bump when the changes take place. But it didnt at any point say we can move to a stronger growth rate of 3 to 4 . It was about the short run and you increase the flow of Government Spending in the short run. What about raising the potential up to that level . Thats what everybody would like to see but the really big factor is productivity growth and its been very likely the reasons are not fully understood. But were looking recent lip at rights of productivity growth of 1 and sometimes less for a few years. Its very low. It could be higher if theres a burst that generate employment as well as enjoyment. People changing their minds. The rate is very low at the moment. They take that into account. It puts numbers on things and theyre part of his calculation. First about the possibility of protectionism. Are those fears that you have as high as they were before . Probably about as high as they were before. Weve had the health of the bill but thats probably a oneoff. The next is obviously taxes and at some point theyll turn their attention to the global economy. The way the World Economic system is being challenged right now. Im concerned about the possible that something worked very well, the policies put in place off world war ii and continued recently. With ups and downs we imposed tariffs on japan in the 70s and so forth. That worked for china. It worked for us. Weve been able to buy many thing. We wouldnt have had it all be up to us. So we benefit from that as well. And we could id be concerned if that basic model is overturned. One more question, stan, youve had concerns about emerging markets and the impact of higher fed rates in emerging markets. Is that still a concern you have . I was as concerned about that than quite a lot of other people. So far were not seeing any great difficulties. And the dollar has not strengthened. Its weakened. That helps them out in terms of their debts, the debts they have to pay. Not in terms of their exports. So i think the emerging Market Countries and developing countries have a good chance than we were thinking some months ago. Thanks for joining us today. Thank you very much. Brian, back to you from washington, d. C. It is d. C. Just in a different way. This is the fed. Its different. Steve leashman, thank you very much. Guys, again, the fed has certainly been put on the back burner a bit, right . The trump agenda has dominated. Charlie evans making comments this morning. Stanley fischer, the fed still relevant, yes or no . Oh, yeah. Absolutely relevant. Absolutely particularly if they accelerate the pace of Interest Rate hikes. As you point out mr. Fischer was trying hard to say as little as he could. Steve was trying as hard as he could to get him out on a limb more. He said what you would expect and that is that they have their eye on the fiscal stimulus that may come out of the administration no matter what it may be, but its hard to know what to do until you know what gets done. And if deregulation is really more at risk after the failure to pass aha, really leading the charge here financials are at session highs and were seeing the s p as well as the dow and nasdaq right now. And still ahead, the Health Care Bill failed so the question becomes will tax reform meet a similar fate. A trip back to our Nations Capital next. Whether its connecting one of the worlds most innovative campuses. Or bringing wifi to 65,000 fans. Businesses count on communication, and communication counts on centurylink. Welcome back. Lets take a look at the markets. We are hitting highs this hour. Helping the s p up 0. 7 gain. The nasdaq powered by big cap moves such as the moves in apple, higher by 1. 8 . This is a record high and it exceeds 1,000 a share and a split adjusted basis. It didnt split it would be over 1,000 right now. We are seeing a new high on shares of apple. Republicans couldnt seal the deal with health care. Will tax reform meet a similar fate . Live on capitol hill with the very latest. Reporter members of the house ways and Means Committee convened this morning to talk about the next steps on tax reform. Paul ryan tried to reassure they are making progress on their plan. House ways and Means Committee chairman brady has opened the door to potential compromise Going Forward talking about the possibility of phasing in some of the most controversial provisions of his tax plan and that includes perhaps adjustment, waiting to see how the dollar reacts, waiting to see how businesses might adjust to those provisions, but the main message we heard from house Leadership Today was not about tax reform but health care. Representative steve king of iowa who was one of the critical swing votes supporting the Health Care Bill came out of the conference saying he still thinks a deal could be done by easter. So there is a sense here health care is not dead yet. Now congressional aides do assure me that health care and tax reform can move on parallel tracks. Well have to see how well lawmakers can multitask in washington. Ylan mui, well see you soon. Though the gop may control both houses of congress and the white house, as we clearly saw with health care and as we have said many times, democrats still matter especially if the gop continues to fracture between the moderates of the Freedom Caucus, the president himself recently suggesting he may reach out to democrats to work with them to get other parts of his agenda done. So lets chat with the Ranking Member of the house budget committee, congressman John Yarmouth of kentucky. Do you, sir, believe a new budget will be passed by april 28th, or do you think well have yet another Government Shutdown . Well, this really is totally in the republicans court. It depends on whether theyre willing to pass what we call a clean cr which is to continue funding at existing levels through september 30th with no policy riders and no things like defunding planned parenthood. If theyre willing to do that, then there wont be a problem. Theyll get lots of democratic votes if not every one of them. Theyre going to have a problem with most everything with their Freedom Caucus and we just got a document today and its not labelled so i dont know exactly where it came from but it was somewhere within the administration talked about adding 33 billion to defense spending for the remainder of the year, so its the five months remaining, and cutting 18 billion in nondefense Discretionary Spending which is going to be very, very hard to sell to Many Democrats and, again, i think the increased spending in defense may be hard for some republicans. This is cnbc, as you know, congressman, so we want to bring everything back to the world of business and money and investing. With that in mind, perhaps no money plan out there is bigger than infrastructure yet there is no plan and yet there are multiple plans as we have talked about. Do you believe that, a, any infrastructure plan will be done this year and, b, if so, what is it likely to look like . What are you as a democrat willing to do with the republicans to get done . Well, again, this is a question whether republicans negotiate with themselves or with us. I think if they proceed with a plan that is largely tax credits for wealthy investors, then i dont think theyre going to get much support from us which means i think it will be doomed. If they talk about new spending, creating a democratic process inside the congress that actually allocates spending based on necessity and not necessarily on the profit potential of projects, then i think there will be a lot of bipartisan support for that. Can i turn your attention to what the president is about to do in roughly an hours time and that is sign executive orders repealing or beginning the process to repeal some environmental rules prom you will under the obama administration, some affecting coal and the coal industry. And the goal the president said multiple it times is to bring coal jobs back. Do you think coal jobs really will ever come back in a big way in your state . No, and i think its one of the most cruel deceptions that are being played in the political realm these days. The power plan that is now being contested and the president is going to scrap has been factored in by most utility companies, theyve decommissioned a lot of coal fired plants, gone to unnatural gas plants. Im not sure that theres going to be that much of an impact even in terms of increasing demand for coal. Even if it does increase demand for coal places like eastern kentucky, appalachia, those jobs wont come back because that coal is too expensive to mine. Its not competitive anymore with natural gas. Congressman, thank you very much for your point of view today. We appreciate it. Okay, brian. Congressman john yarmuth of kentucky. Technology is changing ameri americas classrooms. How exactly and how effective is it . We have a closer look next. Hey. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Whyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Experience exciting offers on sales event is here. Our most elevated suvs ever. Get up to 2,500 customer cash on select 2017 models for these terms. Experience amazing at your lexus dealer. Welcome back, everybody. Technology is already playing a leading role in classrooms across the country and will play a bigger one. Julia borestin and the rising role in technology. Reporter giving teachers around the World Software to find best practices, manage assignments and submit evaluation evaluations, they are a 5. 2 billion industry expected to grow. The leaders is d2l, bright space platform incorporating into its Teaching Software and helps messaging and grading used by over 700 clients and 8 Million Students including about half of k12 and Higher Ed Institutions in canada. Black board helps teachers bring their classrooms online and provide customized programs. The Company Tells its teaching and Analytics Platform to over 16,000 clients not just schools but also governments and businesses. Its taken time to really develop new learning models that take advantage of platform, but i think what youll see in the next couple of years is that most schools become part of a platform network. Has a common learning model and a shared learning platform and professional learning experiences. Reporter the tech giants are looking to tap into this market as well. Google, microsoft and apple each offer free classroom tools for students and teachers looking to hook lifelong customers. Their investment has had a dampening effect in ed Tech Startups since 2015. 930 million was still poured into ed Tech Startups last year. Michelle, back over to you. Ill take it, julia. Julia boorstin. President trump is set to sign an executive order in a few moments time. A look at the potential stock winners and losers ahead. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade ltry align probiotic. N your digestive system . For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Get 24 7 digestive support, with align. The 1 doctor recommended probiotic brand. Now in kids chewables. All right. Two hours until the closing bell and here are your top business headlines. The consumer bump trumping the trump agenda slump. Stock highs after Consumer Confidence hit its highest level in 16 years. But heres the question, if youre so confident, america, why arent you going to the mall . Were going to ask more than 500 Shopping Centers where all the shoppers have gone. And as always we are bringing you the big money impact and the wonky political headlines naming three stocks that may benefit from the president s plan, the roll backs of epa regulations. Lets check out the movers. Apple is trading right now at pretty much an interday record high. To close at these levels saying the stock has 200 a share within the next couple of years. More on apple in trading nation. Meantime were watching tesla shares zooming higher as a 5 stake for the company for about 1. 8 billion. And red hat, beating expectations sales were better than expected and guidance for the rest of the year. That stock soaring 15 . Fed vice chair Stanley Fischer speaking on power lunch. He says two more raid hikes seem about right. His term. But that the rate of investment is very low at the moment, so is the rate of growth in productivity. Fischer adding the feds outlook hasnt changed very much but a lot can change based on the president s spending plan. The president also taking aim at energy regulation. At the same time a House Committee discussing changes to bank rules. Kayla tausche is live with more. Kayla . Reporter brian, in the thousands of pages of dodd frank there is one fourletter word banks fear the most, a label given to the biggest Financial Firms that deems them too big to fail and brings high regulatory costs and high levels of required capital with that distinction. House Financial Services committee is holding a hearing on what it calls the, quote, arbitrary and inconsistent way that fsoc applies that label to nonbank Financial Firms. Congresswoman ann wagner says the cost trickles down to consumers. The annual consumer cost of designating a nonbank Financial Institution as such could range from 5 billion to 8 billion. Yet fails to conduct any cost benefit analysis. Aig, met life and prudential are the three Insurance Companies that have this distinction. A new financial reform bill suggested that these labels would be stripped and the council that designates them would have it revoked. Those companies will no longer have this title. That would be a near time win. Other topics that lawmakers are exploring in hearings like the effective regulation on lending have bigger, broader picture effects, guys, and its important to remember those will take months or perhaps even years to come to bear through full legislation out of congress. Kayla, thank you very much. Rolling back doddfrank not the only headline. After Consumer Confidence soars to a 16year high and home prices surge to a 31month high. Some positive data erase the health care hangover . Larry kudlow, cnbc senior contributor. How do you factor in Something Like Consumer Confidence which can be a very flighty measure. Its one of the soft numbers. Youve seen it. Home builders. Maybe part of it is the election of trump. Who knows. People are out there. Theres some spending going on. Whats missing, and i thought Stanley Fischer had it right on, whats missing is investment, business investment, the single most important part of the economy in my judgment and, behind that whats missing is productivity. And i dont think thats a monetary issue at all. Its a tax issue. That is right. What you need to do is whats on the board. Repatriati repatriation, get the cash over here. Slash the business tax rates for large and Small Companies and immediate expensing so youll get your investment triggered right away. It can be done. Charts show productivity can respond nice ly inside five years. Speaker ryan and the administration lost on health care, a reduction in the capitalgains tax went with that loss that would help investors. Youre right. Europe dead right. I was glad to see ryan had energy in him. Okay, you win a few, you lose a few in life. Get with it. He did a good job this morning. Health care may not be over for the year. He did push tax reform. I like that. I think the rally is in no small part due to his energy and emphasis on taxes. Do you do tax reform all of a piece, do you try and separate out what i know has been perhaps most near and dear to your heart and that is Business Tax Reform from the individual side or is that not the way to go . I would. Look, technically right now because Business Tax Reform easier to get through . I believe so. Not everybody agrees with that point of view and from what i gather the administration and the house do not want to split up individual taxes. Spicer said that today. Middle class income tax cuts plus Corporate Tax cuts are the centerpiece of the plan. I have to get to the biggest benefit from Corporate Tax cuts, large and small, is the wage earning middle class. Going in there as a chairman, once they vet him. The administration has to sell that. Look at the numbers. Some people think its almost 100 go to the wage earners from Corporate Tax reform and as a sideline nobody is going to do this but you could take right now today the Business Tax Reform and couple that with the Health Care Bill and put it into reckon sill yigs technically and legally possible. It could be done. Put them both in the same bill. How about this, though, if, to tylers point on business taxes, if the tax dies, and you want it to die i want it to die. The revenue hit, which means people are talking that the Corporate Tax cut is going to be less than expected if at all, that instead of going to 20 it may go down to 28 because they have to make the money up somewhere. No, they dont. By the way, they dont. I thought it had to be revenue neutral. It does not require that. It is not a legal thing at all. It goes back to thats what theyre talking about. Then you have a hard time bringing fiscal conservatives along in anything. They dont care about that stuff. You know, nobody obama stimulus, there was no offset. There was no pay for. They just knocked that 850 billion of stimulus, boom. I want to just because i love to see the reaction, i just want to say b. A. T. Tax. Its done, gone, over. Ryan doesnt seem to think so and the president was quoted in a favorable term for it. Actually hes flipflopped on the issue. I dont know whether that means anything or not. And neither do i. The business people, i think, are opposed to that. I think its dead. I think kevin brady today signaled when he said were open to amendments and changes to the tax bill hes talking b. A. T. B. A. T. Is dead. I think its done in the house. I know its dead in the senate. Someone will bury that little baby. Once you get rid of that, then the rest will flow nicely. And to sullys point, you can limit loopholes, deductions, which you will not need at a 20 carpet rat corporate rate if youre cutting off revenue from the b. A. T. , youre going to have to make it up over here. The b. A. T. First of all, if you raise taxes, it could have been a couple hundred billion. Weve done this before. You and i can sit down and get you there. 15 minutes is all it will take. Get rid of the loopholes. You dont need loopholes if youre getting tack cuts and repatriation. Im just thinking ahead, even some democrats might be very interested i dont like this from an economic standpoint but politically if youre going to repatriate 2 trillion or 3 trillion, some could be funneled into infrastructure. I dont like government direction of money but it could we could make positive noises about it. If you allow companies to repatriate you should say, okay, you have to invest some of that in this kind of thing. You said i dont like that because thats the government telling you what you have to do with your money, and i take your point on that. Im a free market guy. I can see a bargain under which an infrastructure piece is married to a repatriation piece. You give me this, ill give you that. We have to leave it there. I agree. Better that than b. A. T. , than bridges to nowhere and judgeships. I would take that if i needed to get it through. You have to do business, melissa. Its transactional. Larry, thanks. Larry kudlow. I appreciate it very much. Youre welcome. Big moves in the auto sector, ford up over 2 after announcing it it will invest 1. 2 billion in three plants in michigan. General motors up nearly 3 . Einhorn calling for gm to split its stock into two classes. Theres a potential dark cloud for auto sales and auto credit hasnt been too good for too long and could that put lenders at risk . Lets bring in jason, the senior credit officer at moodys. Great to have you with us. I thought the report was interesting and highlighted some of the warning signs we got, their credit and allied financial. Fewer auto sales next year means fewer loans to make which means lenders will compete more and may loosen their credit terms but theres another, the trade and treadmill is what caught my eye because i think that people dont really understand what that is. Yes, so the trade and treadmill is a situation where you go into a dealership and the value of their existing car is lower than the balance on their loan. And that differential, which we consider to be negative equity, gets wrapped into the balance on the new lone with the new car purchase. Which means the lenders take on more credit risk, correct, because theyre taking on the negative equity and theyre lengthen iing the term of the ln so the monthly Peyton Manning can be the same. Yes, thats right. The lenders are taking on the risk on their Balance Sheet and looking to accommodate the borrower with the Monthly Payment and theyre doing that with extending the loan term as well. The other dynamic in all of this, as you well know, jason, is that used car prices are also dropping, which is adding another sort of drag on new car pricing as well. We spoke about this with auto analyst adam jonas. Here is what he had to say about the impact. In a fiveyear period were running scenarios of used values off by 50 . So we are telling our clients at morgan stanley, please, we are warning you, please be careful. There are implications across the Capital Stack and sector stack. I imagine this is another pressure that youre mentioning. At what point do investors start getting concerned this could actually have an impact on the credit of the auto lenders . You know, we put the sector on negative outlook last year so weve been seeing these trends. Theres been a lot of leasing in the sector. Theres going to be meaningful used vehicle supply for the next few years. So as far as profitability and Balance Sheet metrics, they are already looking concerning and its something that were watching closely. All right, jason, i appreciate your time. Here is whats coming up on power lunch. President trump to sign executive orders aimed at rolling back environmental regulations. What that could mean for Energy Stocks. Consumers still spending a lot of money but not necessarily at the places they once did. Well talk to the head of a Major Shopping Center in a few moments time. And not everyone in oakland is upset about the raiders leaving. Why it could be good for oakland. All that and much more coming up on power lunch. As we head out a nice rally going on right now. Stocks at session highs. Look at the moves for apple, dupo dupont, goldman and the industrials up about fourfifths of a point. And a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance Consumer Confidence jumping to its highest level but it hasnt been all good news with store closures at some wellknown retailers and recent job losses. Kimco reality owns and operates over 500 Shopping Centers in the United States. Top ten apts include the Parent Company of t. J. Maxx, kohls and walmart. Here is connor flynn, president and ceo of kimco reality. Welcome back to the show. Thanks for having me. When people hear about store closures they think thats bad news but a lot of the publicly traited dont have these guys as tenants. What are you seeing in terms of store closures . Thats a good point. When you look at kimco weve positioned the portfolio so if a tenant closes up a store we get the market to Market Opportunity there to bring that lease to market. And so when you look at kimco as a whole our anchor boxes are 65 below market. Weve positioned the portfolio to be really opportunistic if we get the boxes back. But whats happening in a lot of retail eers today is a lot of t secondary markets is where the store closures are happening. If you look at a map its really in low population areas, areas that dont have the density or population growth to sustain the store. When an anchor box leaves and there may be quite a few of those this year, whats the next anchor box that comes in . Who are they . Were a Shopping Center company so 72 anchored by Grocery Stores. So when you look at the specialty grocers, trader joes, traditional growth like albertsons or kroegers, the off price categories, so t. J. Maxx has t. J. Maxx, marshalls, home goods, sierra trading post. The home goods nordstrom rack. You have to have a lot of anchors. Burlington. You have to have a lot of anchors. We love anchors. We love anchors here. We love ourselves. How long, though, does it take to replace that anchor box, so to speak, and are you at risk at all of triggering cotenants agreement where you have to have a certain amount of foot traffic to satisfy the leases of the other tenants . Good question. Were over 97 occupied in our anchor spaces. When we look at that to get the spaces back and it depends on the location obviously. Real estate is a local business so you want to look at the opportunity there of who is the best retailer to complement what youre trying to drive to the center so entertainment is another good concept thats been a big boost, movie theaters. Theres a lot of new concepts of dinein, reclining chairs. Booze. Connor, can i widen it out a bit. And i understand you guys have changed your portfolio. Its not a kimco question, its an america question, i guess, to melissas point, they may be in the youngstown of ohio, what are the solutions to that, though . It breeds crime, lower property values, does the industry does your industry have any responsibility . Not kimco but the industry, if you build stuff and people leave its empty, what do we do about that . Whats the solution . Theyre ugly and theyre dangerous and they hurt everybody. Its a hard question. I think when you look at some of the higher and better uses for the locations, it may be industrial. It may be something totally different than retail, medical might be a good use for it. A lot of Services Today are doing new deals. When you look at gyms and fitness facilities, those are the most aggressive. Maybe by a jeans seller but maybe theres Doctors Office indoor Trampoline Parks as well. Theres one in new jersey. Sky zone. That place, i wish i had that business. Its crazy good. So what i hear youd flip over it if you had it. When saks pulls out the next tenant might be kroeger . Depending on where the box is located. If its a mall, theres usually four anchors in a mall and sometimes theyre in the back of the mall. It will be hard for a Grocery Store to relocate to an enclosed mall if the box is in the back. Half empty strip malls are uglier than me without makeup. Theyre bad. Theyre bad for america. They are tough for communities. Why is your stock down 12 and its underperforming the retail etf, the Retail Sector . Retail is getting painted with a broad brush. Or the ret sector. Were dealing with negative headlines. Were trying to make the case the strength is there and were showing it and have to put up the numbers and execute. Thank you. Appreciate it. All right. Coming up, the investing opportunity around the president a president s plan to roll back some epa regulations, plus, a small cap texasbased metals company. One analyst says you could earn nearly 30 of your money on. That name coming up on street talk. We price, we can help guide your retirement savings. So wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. 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. We kick it off with carnival. Sun trust evaluating First Quarter reiterating buying of the stock. The highlights include volumes and pricing running well ahead of pace for the remained earp of 2017. Also during the quarter and during the allimportant season when people buy trips positive on volumes and pricing. Were seeing the stock pop. Booking trips not buying jeans. Number two, Credit Suisse upgrading from a neutral, commercial its the company i teased and i couldnt remember the name. Commercial metals, should see Significant Growth over the next two years. The global row bar. I know youve been looking for rebar markets. Recessionary margins, inventory is leaning out. Demand finally picking up. U. S. And global metal margins last year hit historic lows the second half of the year. An analyst says they are recovering nicely, boosts the target 28 up. I wrote it this morning, now its up 6 . Still 25 or so on cmc. Red hat blowout quarter from the company prompting them to raise the price target up 5. Strong initial guidance for fiscal year 2018. Red hat saw some big deals in the quarter along with acceleration. You can expect to hear more about this during the Analyst Meeting may 2nd which could be a cataly catalyst. And your smaller cap call of the day is an illinoisbased an o outperform from a sector perform. They remain optimistic he especially because larger players in the industries, adp, continue to see attrition. They say the failure to reveal removes the risk because revenue should be 7 to 8 of total revenue. Rbc boosts target from 38 . So a nice upside on pcty. A look at Energy Stocks and the president s epa roll back plan. I joined the army in july of 98. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Experience exciting offers on sales event is here. Our most thrilling models ever. Get up to 2,500 customer cash on select 2017 models for these terms. Experience amazing at your lexus dealer. Hi, everybody. Im sue herera. Scotland wants another chance to gain its independence. Scottish lawmakers approving a measure today that allows their leader to ask the British Government for a formal vote to break from the united kingdom. The move was prompted by the uks decision to leave the european union. The coast guard confiscated nearly 16 tons of cocaine with a street value of 420 million. They did it in the eastern pacific ocean. The drugs were unloaded this morning at Port Everglades in ft. Lauderdale, i should say. It took place over 26 days and netted smugglers from 17 different operations. Dunkin donuts is teaming up with ways to keep coffee seeking drivers pretty happy. Starting today you can use the Navigation App to find nearby locations on your route and place orders in advance. And images and videos from accepts or triggered cameras dep within thailand have led to an amazing diskocovery, tiger cubs participate of a rare subspecies, showed up among a group of adults. That is good news because they are endangered. Melissa, back to you. No pandas but tigers. Thanks, sue. We are 90 minutes away from the closing bell on wall street. Stocks are set to break their longest losing streak. The dow up by 0. 8 . Oil closing up almost 1. 5 and we are expecting some video this hour on President Trump signing an executive order, obamaera Climate Change regulations. The president saying his administration is putting an end of the war on coal. Well bring you that playback tape when we have it. Fed vice chair Stanley Fischer speaking to Steve Liesman on power lunch. Fischer saying two more rate hikes seem about right. Typical fed speak. The rate of investment remains low at the moment overall. Still, fischer adding it has not changed very much. Fischer was asked whether the feds forecast aroring in any large tax cut. They dont have to tell us. They tell us what they think is what they think is the appropriate policy given other expectations. But, you know, theres a lot outside the fed of forecasts that we wont see a significantly large tax cut until 2018. But what the members of the fed assumes when theyre filling out the forms what they expect i dont know. Meantime, regeneron looking for drug approval. Its all important for this one. You cant talk about a new drug approval without talking about the price. And they have told us to us. The stock is not responding super dramatically. Its been approved for atopic dermattis, a form of eczema. It was approved today. They put a list price on this of 37,000 per year. Now this coming in about within expectations that analysts set out there and they say the target population for the drug in the u. S. Is about 300,000 patients. You may say 37,000 for a drug that treats skin rashes, we talked about this with the ceo back in january. Listen to how he described it. Moderate to severe, a terrible disease characterized by itching and scratching and bleeding and discomfort, lack of sleep, even suicide in some patients this is an important disease. Analysts are talking about this potential blockbuster here. Consensus Sales Estimates going out to beyond 2020. Some expecting more than 3 billion in annual sales here. Of course regeneron has a splitting agreement. This is a big drug for them. Are you surprised at the stock reaction . No because people expected approval by today and analysts have been pegging the price around this amount, actually fascinating note out this morning saying 30,000 is the new 50,000 in this drug price environment. People hoping not to really raise the eyebrows with the very high price tag in this environment right now. Meg, thank you. Meg, lets take a left turn a little bit, talk about President Trump signing executive orders aimed at rolling back environmental regulations. Joining us is karen harbert, president and ceo. She was with President Trump during the signing. What did he sign and what does it mean . Great to be with you. Energy accounts for onethird of all investment in the United States and what President Trump did today with the stroke of a pen is unleash the potential of that onethird to benefit the rest of the economy. Well be able to export more American Energy, put more people back to work and attract more investment. Its a great day for america. Whats the environmental effect of that going to be . So right now our emissions are about where they were in 1995. Before any of the regulations came into effect. Were cleaning up the environment, cleaning up the air. And charged pruitt to keep going. The obamaera regulations did little to actually clean up any Greenhouse Gas emissions but had he were good at putting people out of work. It was already getting cleaner, in other words . Were on a great trajectory. We need to keep it going. Its about american innovation, technology, and putting that into our system and that needs to continue, by the way, we have good regulations here to produce energy more cleanly here than any place in the world and we can still continue to do good things and produce more American Energy in a clean manner. The president will end the war on coal. What does that mean in terms of jobs . We had a congressman on last hour from kentucky, a coal state, who said its a cruel deception to believe those coal jobs will come back in any big, measurable way because the coal in his state, he said, was so expensive to mine its not competitive. Weve been losing coal mining jobs and shutting down coal powered fire stations for a number of years. It allows us to invest more efficiently and cleanly. We will turn this ship around and let these coal miners have some hope of future jobs. Karen, thank you very much for your point of view. We appreciate it. Karen harbert of the u. S. Chamber. Theres the news. Why dont we cnbc it up and get specific to up money and what the best investments are now for your portfolio and bring in the he head. The president signing this at the epa. Why is that good for, say, a williams partners, wpz . I think its important to take the underlying theme to what the winning size will be going back to natural gas. Demand will be here to stay. That will help the adoption of natural gas here and across the world. With prices around 3, an ample amount of supply that will continue to be abundant here. So far williams i think you want to step back and look at a name like roc, they have some of the biggest acreage, break evens are closer to 2 on nat gas. Theyre an emp game. The pipelines, like you mentioned, wpz, weve seen the pipeline that will push to natural gas fuels. It owns the assets from the parent for which wiilliams. Thats one you want to play in williams. Heard you talk about the tax with larry, theres uncertainty there. They purchased williams im sorry, western, wnr, late last year and western has ample and good supply to both the mexican gas market and chicago gas markets. They need our gas big time. Thri admire what the preside is trying to do from a jobs perspective. Natural gas you mentioned, not even epa regulations because it cant compete on a price basis. I think you nailed it on the head there. They look good but arent doing anything fundamentally. For cole, like you mentioned, the damage for the last eight years is far reaching. The coal plant 50 years in the making theres no utility that will turn and try to make a new coal plant that may be turned around in four years. With natural gas around 3 it makes too much sense to continue using natural gas and go that way. The fact is the mendoza line and the break evens dont even start. You bring three ideas for us, range, wpz, well see you again soon. Thank you very much. And coming up on cnbc, pepa administrator scott pruitt at 3 30 eastern will talk about what we just talked about from his perspective. Meantime, back to the stock market, apple hitting a new alltime high and, get this, one analyst sees 200 a share in the next couple of years. What is the trading nation team think . Well find out. When this guy got a flat tire in the middle of the night. Hold on dad. Liberty did what . Yeah, Liberty Mutual 24hour roadside assistance helped him to fix his flat so he could get home safely. My dad says our insurance doesnt have that. Dont worry i know what a lug wrench is, dad. Is this a lug wrench . Maybe . You can leave worry behind when liberty stands with you™. Liberty stands with you™. Liberty mutual insurance. Dominick chu . Were watching dow transportation stocks outperforming the Broader Market overall, the index is up about 2 so far. This is interesting because its tracking for its best day so far this year, all of 2017. You have to go back to december of 2016 when it gained 2 again on that particular span. All the components in the index are positive. United, jetblue, ryder, up around 3 despite the gains, we should point out, transports still down 3 on pace to break a fourmonth winning streak and still 5 , brian, bloep the highs we saw this month. Big move there. It is time for trading nation. Lets trade apple. Why not . Its the Biggest Company in the world. Its hitting a record high today crossing 144 a share for the first time ever. And if not for its 71 stock split it would have just hit you have to put the pinky to the mouth, 1,000 for the first time ever. Your trading nation team today. Gene, 200 a share on apple, do you think its coming . I think it is. I think that if our range is 180 to 200 and we think that is going to happen because the numbers get so easy for them over the next few quarters from 3 to 12 growth from now until september. You have all the hype around the phone. 171 days, by the way, likely until the next iphone is released. Traders should think about this is the golden opportunity. Will the numbers get better and probably trade it off once that phone gets announced. I thought that as the numbers going to what you just said before i go to ari, it gets easier, the numbers will get bigger, i thought as the company got bigger the comps got harder and made less impact. The next three quarters they get easier because it was such an abombable last year. They will be difficult in march of 2018 but at least for the next three quarters and 171 days things should be clear sailing. Dont forget there will be a likely increased dividend tax holiday so a lot of things that can keep this 14 multiple inching high er. Ari wall, do you think 175, 200 is on the horizon . Yeah. The key takeaway from the charts, brian, is that the stock is breaking above resistance from its 2015 peak this is a sign of new demand for shares and it does set the stock up for a continuation of its rally and additional outperformance over the coming months. Here are the levels you have to watch. That breakout above the prior resistance at 135 is now support. Thats what we can think of in terms of down side risk. Now on the up side the projection measures to 180 assuming how the stock traded in the prior range we can see on the upside so that argues for a 3 to 1 upside to down side risk, a very attractive risk reward balance as we see it. We rate the stock as buy. All right. Two bullish views there on apple. Its another record high. Guys, thank you very much. Appreciate that. For more trading nation go to our website, tradingnation. Cnbc. Com. Football fans in las vegas are thrilled at the prospect of the raiders coming to town, but many in oakland happy to see them go. Why losing a team may be a good thing. Thats next on power lunch. Its risky to buy a stock selling off. Dont buy just because its on sale. Weve seen the item in the store marked down 10 and three weeks later its marked down 25 or more. Purchasing the socalled sale he items early on can put a dent in your trading account. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. Video coming in right now from moments ago, President Trump signing executive order aimed at rolling back obama era environmental regulations. Trump cede the administration east ending the war on coal and signed the bill, saying, you know what this is . Youre going back to work. Markets now are at session highs. Again, moments ago, signing that executive order. Oaklands raiders moving to las vegas, and while vegas is thrilled, those in oakland are not mourning the loss. Josh lipton is outside the Oakland Coliseum with the story, josh . Reporter well, tyler, this is really just the latest blow for east bay sports fans. That iconic raiders franchise valued at 2. 1 billion. As you moengse ementioned, itso sin city. They included a billion dollar stadium in vegas, and its not just the raiders leaving. The Golden State Warriors are moving out too, heading to a new 1 billion stadium in San Francisco. Sports teams are moving out of the area and real estate analysts say the sky high prices in San Francisco shift demand, prompting migrations and expenses across the bridge. The east bay welcomed over 100 new Companies Since 2010 with most going to oakland, for example, uber moved a few hundred employees there by the second half of next year. In all, some 200 tech firms now located in oakland including online Music Service pandora, and in total, the Tech Companies occupy 1. 7 million square feet, and prices for the real estate keep moving higher. In q1, office represents in downtown oakland served 18 to 57 per square foot, and that was the highest ever, and its not just companies. Over the last six years, the east bay welcome over 90,000 new residen residents, more than onethird of the bay areas population now actually lives in the east bay. That kind of big shift brings challenges, of course, including complaints when it comes to costs of living. Dont expect the growth to stop. They say that momentum keeps going with office represents moving higher in 2017. Guys, back to you. Hey, josh, thank you very much. Lets stay on the story from a business angle. Joining us on the newsline is a Sports Management professor at the university of San Francisco, and shes lived in the bay area for 20 years. Nola, its interesting, reading the headlines, from a sports perspective, its sad. You hear words like oakland lost the raiders, losing the warriors, but your Research Shows the quote, loss, is the citys economic gain. Explain. Caller brian, thats absolutely true. Its a sad day for raiders fans, especially because this happened before, but from my perspective, professional teams dont benefit host cities, meaning their absence doesnt have negative economic effects. How so . Dive in deeper for us. Well, so, you know, the best example is if you think about fans, spending their hard earned money locally on the team. Teams have enormous expenses pushing money outside the city. Best example is players. The raiders have 150 million payroll. Thats 150 Million Dollars thats leaving oakland, coming from the residents, but pushed out to the economy. Thats leakages. What it means is that teams are not necessarily bringing money into the community. They are also pushing it back out. You know, its interesting because what we think about in the simplistic way to view it, nola, theres video of people going to games, they are probably had a few adult beverages, spending money, they eat in the local restaurants. You say thats mitigated and oakland may come out ahead . In a lot of ways. I mean, you also think about substitutions, so if im a resident and ive got money to burn in my pocket, i can go to a game. I can go out to dinner, see the movie. Theres a variety of things i can do, and i can spend money locally, and often, if i spend money in a restaurant or movie theater, its likely to stay in my community than if i spend it on the raiders, so, absolutely. Theres all sorts of examples of cities. Look no further than st. Louis losing the rams. They are doing okay. Another dynamic on terms of impact on las vegas because its a tourist city . You have money that otherwise might not be spent being spent on tickets for games that was not an option before . Caller so the same dynamic still applies, which is a local resident might have an option, right . They can gamble, drink, go out to dinner, go to a raiders game. What the raiders are relying on in las vegas is for there to be influx. They need to have a lot of new people to come to the city in order to pay off that enormous subsidy, but the dynamics apply. Professional teams do not benefit the communities. Were probably not going too to see a boom in vegas either. Professor, thank you. Caller thanks for having me. Check, please, after this. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. There is a lot of green on the board. The s p 500 higher now, financials among the leading sectors there. Regional banks and more. Things moving on up today. Quite a little change of discipline from what weve been seeing the past couple days. Theres an argument to be made, the trump agenda is just good Old Fashioned earnings, economics, a global rally, every market in the world is up big this year other than two. The nikkei in japan and russia. Whats helping todays rally . Shares of apple. Apple on a record high, 144. 03 was the level, and if they close here, thats a closing record high for shares of apple. Ubs positive saying theres a path to 200 a share. That, no doubt, helps this, and this, in turn, helps indexes across the board, the dow, the s p, hitting session highs. Shall ewe discuss apple on fast money . We might be. A bite of the apple. Yep. Thank you for watching, and closing bell continues this rallying coverage, and it starts . Right now. Hi, everybody. Welcome to the closing bill. Ooem kelly evans at the new york stock exchange. Im bill griffeth. A late day surge for the targets. Theres confidence, stan fisher, i dont know if you saw this, telling cnbc two more fed rate hikes this year, quote, sounds right. We have more on whether this rally can last. Thatll be coming up in a moment here. Meanwhile, snap shares falls after facebook has a new feature that