Well talk to one row about that. Power lunch starts right now. And happy tax deadline day, by the way, today the last day to send your money to uncle sam, maybe that is impacting your stocks, too, stocks down for the fourth time in five days, keep in mind as michelle said, Goldman Sachs along with j j, taxing the dow, those two stocks responsible for most of the dows losses today. Well have much more on your money and impacting on stocks. We begin with facebook, and in san jose, california, where Mark Zuckerberg is expected to take the stage at any moment to deliver a keynote address to facebooks conference. Well discuss the Facebook Post of a man being murdered in cold blood. Well talk about the suspect who killed himself today during a police chase. Reporter that is right, brian, we expect Mark Zuckerberg to take the stage any moment right now. He will listen carefully to see what he says about plans to ramp up facebooks review process for offensive videos or changes policy. This after yesterday the company said they know they need to do better and are working to improve the review of the videos. Facebook will work to focus the Conference Today on messenger among other things. Its been a year since messenger launched box, and today well talk about the opening on groups, for everything from sharing songs to playing games. Well talk about future products in the work, the Virtual Reality and augmented reality will be discussed today, there will be sessions going on the next two days and plenty of demos for the 4,000 developers here to try. Following zuckerberg, the first one set to speak there will be a couple of keynotes from product announcements to david marcus, well interview him today and in the meantime, well talk zuckerbergs keynote addresses. He has to be shocked, when you turn on any cable network, it says facebook killer, it has to be so bad for the branding. Yes, im sure, facebook weighed in saying they know its unacceptable and they need to work on different ways to pull down the different type of videos and block them from being posted. As they use a combination of Artificial Intelligence and people who are reviewing videos and flagging videos, they need to figure out what to do to make sure it happens never again. I would expect that zuckerberg would address the issue probably right off the top of his comments. But im sure he had a whole other speech prepared for today. As he tries to show the developers what they have in the works for facebook and messenger and instagram. Well, the best played plans, so julia, thank you. And Goldman Sachs weighing in on the plans, as goes goldman, so goes the market, theyre down, whenever they fall 5 in one months time, the s p 500 more often than not falls right along with it. Only 16 of the time since 1999, that is when goldman went public does the Broader Market manage to shake it off and post positive returns when the bank stggles. So should the public be worried . Lets bring in peter anderson, chief investment officer. Mr. Anderson, let me start with you, do you buy this analysis . Do you buy the Broader Market . Well, it is too simple, there are many, many more factors more than ever right now compared to the past oh, 15 years ago. So what do you think of the markets then, right now . I think the base line is very attractive for u. S. Equities, and goldman, their competitors have done quite well where at the early stages of the earnings this quarter and things look pretty bright to me. So i guess i mean, goldmans miss was a lot about trading, where as the rest of banking were so focused on we tend to focus on their loan growth and what it tells about the economy, i have to tell you, the low growth is mixed. I wouldnt think that Goldman Sachs tells you what the rest of the market is going to do. As a result, the Companies Often have a lot of variation at a high level but yet still a lot of variation. We look at the other Capital Markets exposed. They did you do well. Loan growth has slowed down, for investors in general there is a lot of information about the slow curve, and tenyear treasury yield. That said i still like the big bank, Capital Markets exposed banks and the earning season is stilt ear still early. I think what were learning its a good earning season, not a great earning. Not much higher, unless we get the Corporate Tax cut. We have a guest coming up, especially, ill make the argument that the earnings are pretty good. That aside, david, we have a lot of stuff going on, earning s obviously, we have north korea, and elections, and dysfunction, as an investor what is top of mind to you . What is the most important thing to you . Well, you just mentioned a couple of them. I would tell you the other one is valuation that people asked us about. What is important to me is trying to find opportunities in a market that is fairly but fully valued. We see opportunities in many large financials that we talked about. Health care, and large tech and small cap tech, and sectors as u. S. Financial and Growth Stocks i would look abroad. To europe for more value opportunities particularly in the industrial sector, versus industrials, well looking for growth stock out of asia. But peter, the uss carl vinson, one of the biggest carriers of the world is heading to an island off the peninsula of north korea. What do you feel about the growing concern about the saber rattling . You answered my own question for me. Exactly that, i think we are way too much minimizing the geopolitical risk when we talk about weaponizing nuclear weapons, et cetera. That is a very, very serious issue we have to factor into the models. So when i talk about a base line u. S. Economy that is absent all that. I think the base line is very strong. But then you layer on all the complexities that grow as we speak. Its very, very difficult. So for instance, when david mentioned investing even overseas, say in europe, i believe, you have brexit, you have the french election, there are so many issues now. Let me just go back, that is why i was saying earlier. Its very different from this rule of thumb about goldman, there are so many new factors right now that it is very, very complex to put all of this into some kind of number where you think the s p 500 is going to be. Instead i think you really have to be sober about looking at individual stocks, picking the stocks that are somewhat insulated from all the geopolitical risk. Its very challenging. Yes, it certainly is, that is why we have you g on. And lets dig deeper, joining me, chris, Senior Analyst at oppenheimer. You probably heard about the analyst, why i thought goldmans analysis was not terrible. From 2006 to 2017, revenues up 26 , return on equity was 11. 4 versus 6. 4 a year ago. By any metric, any company in the world would like to have that kind of growth. What happened . Look, im recommending goldman, im a believer, i tell you their business is more volatile on a quarterly basis than most of the big banks business. What you said is right, coming off a very depressed were having chris, you there . Looks like we got patched into another feed there. Sorry, yeah so the comparisons coming off last year are distorted. But if you look at comparisons against 2015, right . City, bank of america and j. P. Morgan on average, one, two, big trading results up about 5 versus 2015. Goldman was down 46 . So you know there is no sugar coating. But the one thing chris, and i know youre there go those voices in my head again. Im glad you hear them too, i normally have them just here. Chris, well try to carry on with the interview, our promise, i am sorry its not some phantom. The other thing, goldman doesnt lose money trading that often, they didnt do well last quarter, but most quarters they do pretty well. I imagine since you still recommend the stocks you expect trading turn nd because that is what goldman has always done. Bingo. I mean, that is my basic reason for recommending the stock. I think the rising rates mean more volatility and fixed income markets which will ultimately transfer into the fixed income trading revenues. And i think goldman will be the pure play beneficiary of that. The other thing i think to keep in mind, when you compare it to city and j. P. Morgan you have to realize that those three mega banks are all much more holistic banks, much more trading interface, versus corporate. Where as goldman is more hedge fund, it is inherently more volatile. Thank you, we know youre still recommending the stock, we apologize for the technical issue. And maybe gary counchen is more important than people thought to them it was only us who heard it. The audience thinks were crazy, we have strange audio here in the studio, and coming up, teresa may calling for early elections june 8th. She hopes to build in parliament, and wants a greaters majority. The pound jumped a lot more on that, more than 1 , markets believe she may even get more conservative seats in parliament, that helps her strike a better brexit deal. This all comes while europe and the world await the more key election when the president of france, round one of part two of the election is sunday. The country is on high alert for the teor threats to disrupt the process. Just today French Police say they stopped what they called an imminent terror attack, arresting two suspects in the port city of marseille. The men are both french and suspected of wanting to commit a violent action on the eve of the french president ial election. France has been on high alert with the issue of security, a major one throughout this cha. Campaign. Well have live coverage all day with the results of round one on monday. Nobody gets more than 50 in the first round . That is what they think will happen, you go to a second round where somebody gets 51 . And two weeks later kind of like soccer championships but with a much more important outcome to some, i suppose. To some. All right, in the face of huge disruptions in retail, one segment is still shining pretty bright. That is luxury. We have a very special guest. The former ceo of chanel will join us, today is the day taxes are due. After all the fear and doublechecking what are your fears of being audited . Well, depends on how much you make. Well tell you the odds coming up. The road can change in an instant. But th lightning fast shifts and dynamic tracktuned suspension, what the road demands, the gs delivers. Experience High Performance through high technology, in the lexus gs 350 and gs turbo. Experience amazing. Our 18 year old wase army in an accident. 98. 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. 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. Welcome back to power lunch, in san jose, at facebooks developer conference. Ceo Mark Zuckerberg just took the stage for the keynote. Right off the top he addressed the issue weighing on facebook, this question of how facebook is going to address the issue of sunday, a video that was posted on facebook of a murder, now the question is how theyre going to address those types of offensive videos moving forward. Take a listen to what zuckerberg said. We have a lot more to do here. And were reminded of it this week by the tragedy in cleveland. And our hearts go out to the family and friends of the deceased. We have a lot of work and we will keep doing all we can to prevent tragedies like this from happening. After addressing that tragedy, zuckerberg tried to move the conversation on to all the different innovations facebook is working on, including the likes of augmented reality. Well listen to the keynotes at different times, back to you. Lets get a market flash right now. So gmc having a breakout day right now, stocks up right now on the best day ever. The Nutrition Company is rallying after early signs of renewed sales growth here. Nearly 5 million customers joining the Loyalty Program at the end of the First Quarter, shares though to put in context, still down more than 40 from their ipo price of 16 bucks, off 80 from their record high, still, though, michelle they traded on 18 shares on average. Thank you very much, don chu. From the board room, to the executive room. Chanels sixyear stint as the executive there. She has a new book out, detailing her long and sometimes rocky climb up the retail ladder. Welcome to power lunch. Thank you. Before we talk about the book, the state of luxury right now and it really struck me right now when donald trump was inaugurated. The questions were about how the d. C. Style would change because it was so different from the obamas to the trumps. Is luxury more okay now from donald trump melanias effect i dont know if it is okay, but the white house influences fashion, look at michelle obama, her effect on fashion in the white house. She helped to bring back j. Crew, temporarily. He is a great mentor and friend. I think its really tough out there, traffic is down, customers have so much stuff in their closets now its pretty hard to grab off that millennial customer. Is that the problem . Too much stuff . I think its part of the problem, you have the internet, you can basically shop at home, i know i do, do you . Yeah, i think it means were getting a all riglots more stuf and you wonder if is true or permanent. I always worry when somebody says well never go back. It always makes me think of the other, the retail comeback . Its really hard to say, when you have kids at coachella snap chatting instead of walking down madison avenue with their labels have you seen the photographs absolutely, buying among second hand sites. And i think we got to think about that. As we move towards perhaps less stuff, where you see the joy of left, et cetera, isnt that good for luxury . I think for example, the japanese were famous for having very small spaces to live in. So when they bought one purse, boy, they spent four or five grand on a purse because that was the only one they were going to buy. I think it would be and can be good for luxury if they go beyond the label, maybe they need to think about how to create more meaning for millennials. I really think that is what at stake now, 50 of the shoppers will be millennials very soon. They want things more connected to the environment, and social justice. Lets go back to your book, this is a question close to my heart. We had another baby a couple of years ago, why is it so hard for working women . I mean, and not just women, i know some of my buddies stay home and their wife works. When you look at the cost of child care and taxes, corporations dont seem to give a you know what. They dont seem to contribute to consumer care. And you think, you know, its not worth it. Im giving my money to somebody else. What do corporations seem to need to do . Because child care is absolutely important. There has to be Flexibility Work arrangements for women and men, also we need to embrace a new way to think about leadership. This 21st nt requires skills that women have intrin c intrinsically. This is what we need today, i think companies have to embrace it to see more women at the top. Well, well read more about it in the book, its great to have you on and hear your theories what is going on with retail. Thank you. Beyond the label check out the book. And you could probably tell the cold pit in your stomach, well, its take day. So what are the odds of facing an audit . Well, it has to do a lot with how much money you make. Well give you more numbers, the chance to deal with the irs, always a great time. Were back right after this. Well, it may have come three days later this year, but the day is upon us, today is tax day, april 18th. And while many check their odds what are the odds you will actually end up getting audited . Turns out the richer you are the more likely you will be audited. And they are ten times more likely to be audited. Where do you fall . If you make median income, between 50 and 75,000 there 75, the odds are 4 , if you make 500,000 to a million, you have a 2 chance. If you me a milon bucks you have at least a 5 chance of being audited. If youre a super earner, those making 10 million or more you have more than a 5 chance of being audited. Well, large deductions, relative to income. Dont write off more than you earn. If you have an llc, an scorp or anything else, they can audit you. If you own a Foreign Bank Account that is likely to get you flagged. And if your company is always getting audited and you claim those losses, and always have losses, you will likely get audited. So this is maybe the one time you dont want to be rich . Exactly. So you are underpaid, i love you all. I just got audited some people who do audits will buy audit insurance, and if you get audited, they cover the cost of the audit. The cost, or what you may owe if you screw up . The challenge is what nobody covers. Thank you. Thank you, guys. All right, what role does social media play when it comes to posting disturbing and offensive videos . Power lunch is back in two minutes. Hello, everybody, im sue herrera, defense secretary jim mattis, arriving in saudi arabia for his first trip to africa and the middle east, he says theyre working together to get the north korean issue under control. The leader of north korea again recklessly tried to provoke something by launching a missile. It was not an intercontinental ballistic missile. It failed on launch and shows why were working so closely right now with the chinese. Hundreds of palestinians in israeli prisons continuing their Hunger Strike as supporters gathered in ramallah to show their support, experts say that many held by israel are joining in on the protest demanding better conditions. And the pope celebrating his 90th birthday on monday in the residence at the vatican, shocking the world back in 2013 when he announced his decision to leave office. Year up to date, that is the news hour, michelle back to you. Earnings went on t markets today, dow down triple digits, Goldman Sachs responsible for some of it. Down about 5 , analysts say they beat expectations, not doing them any good, theyre down half a percentage point. Maybe that is consideration from what we saw from other banks today. So michelle, how about shares of ww granger, down 11 , showing the worse performance from the s p 500, First Quarter results also missed analysts expectations, the company sold more of its products at lower prices, shares on pace for their worst day in 11 years, with the worst decline, the granger shares down 14 , year to date. All right, thank you very much, don chu. And policing the internet, founder and ceo Mark Zuckerberg speaking at the conference, this in the wake of the horrifying video of a murder in cleveland, posted on the site. The suspect killed himself in pennsylvania after being confronted by law enforcement. More and more video, life happens on line, how does the world need to evolve . Lets bring in the cofounder of society ventures, welcome to power lunch. When it comes to this, what are the implications . He addressed it right off the bat. The killing everybodys hearts go out to the people affected. But what does facebook need to do in order to stop the government from stepping in. Well, look, i think right now were seeing an interesting time where there is an innovation gap. So facebook and Silicon Valley companies have innovated a pretty extraordinary pace, the industry and the government have actually failed to innovate. So a lot of challenges you see, we talk about fake news and policing the internet, possibly its the Traditional Industries like the media sectors responsibility for rethinking. How do we actually provide this in a way that consumers can understand . Hold on, convince me, its general medias responsibility to figure out how what i heard you say, the general medias responsibility to stop facebook from posting a murder on line, clear me up on that. To be clear i think the problem actually staems from a lack of innovative from the media, right . What happens as consumers digest more and more of their content on platforms like facebook, the content that the media is pushing out are not optimization of what they find how does that stop the posting on line . That has nothing to do with media, but maybe has to do with the government in terms of what they can post. If it is anybodys responsibility, its febooks responsibility to police. It depends how you define facebook. Is it a platform or Media Company . Its a Media Company, the company translates to shares, and if it doesnt do something it will be regulated by government. And i guarantee you that is not the answer they want. Nobody in Silicon Valley wants that. But again as you think of stroe entrepreneurs, not everything is going to be solved by big government. It is an opportunity for them to come in and say how do we tackle the problem especially from a standpoint of the this is not the first incident. There has been many, many also not just facebook, by the way, brutal things. Suicides, attacks. Terror taking place. If i said there are a couple of words right now we would get fined if we said the words, because the fcc would be up our that is one of the words. Seems like the Technology Companies say look, its the people, were just the platform. With every technology, you have a double edged sword. The challenge you run into, once you start to censor this stuff and filter it, also hard to define youre trying to use the word censor like a political anchor. What i think i hear you saying, and maybe that is my intern politics hoping its what you want to say is that the private sector will figure this out. That there is this gap at this moment, right . But at some point were all going to look back on this like a point problem that it used to be and recognize the private sector is coming along and to be especially clear, facebook has evolved from a media background, so this is not the world theyre used to dealing with. Let me clarify, somebody keeps saying the media sector can get involved with helping Companies Like facebook. I see this in the Silicon Valley for the last few years, we have had more executive Companies Come and visit Silicon Valley in the last ten years, and that collaboration, this is the first time you see Silicon Valley playing an Important Role across these areas, traditionally have been left to governments same way, oh, people texting while driving, we have past laws, at some point there is a technological solution, and we look back at it and say oh, that is not a problem any more. Powering the phone down is a technological solution. When you try to force beha behavior change, it doesnt work in a world like this where they have to power to do this. You cant police every individual. And why not if you give them the platform . Why not . Because that has already left the barn. Youre not going for shut down facebook. No, no, not shut down facebook. Not allow videos to be posted . Where do you draw the line . This apparently was not live, it was uploaded. Im saying a reasonable company, what we have to do, now were live and can do whatever we want to do. Hopefully the consequences and i dont want to but if something is recorded and put on line, you know, put on the air at nbc, somebody is making sure that its not horrific. That is the idea. So why that is the exact problem, this is the problem we want entrepreneurs to focus on. I dont think the right solution is to expect the big guy every time to go and solve the problem, the fact there is a problem allows that there is a market failure, one way to deal with the market failu is regulation, another way is innovati innovation. Well, they better innovative before the government steps in. That is right around the corner. Your face is so charming. I think we learned very little on social media all right, over the past year over 300 Million Viewers followed the pregnancy of april. That is a giraffe at Animal Adventure park in happeners vil harpersville new york. People watched as the giraffe gave birth live. Now they are on a campaign to name the viewe erer erer erers member of the family. My favorite animal, because it cant make a vocal noise, so it cant compete with me. Also its beautiful and tall. How about bs, beautiful and tall. When there is an anchor, the perfect example of benefits of live streaming. However, the giraffe did kick the zookeeper. The government steps in that is the name, censor the giraffe. And will samsung put the problems to the viewer . Todd hazelton, the tech editor joining us, he has the phone and has been using it. First and most important question does it catch fire randomly . That is the thing, i dont know yet. Is that a no . Its not a no, because i bought the galaxy 7 twice we have to wait to see if it works, before we see reports of the flame and stuff you were firefree . Correct, i was firefree. In any case this is the next big one from samsung. Since then it has to show everybody this phone does not catch fire. It still has got it and its awesome. Why is it awesome . It has i called it its the future of smartphones. Can you just rotate it that way . Its the future of smartphones, i think were moving towards displays that cover almost the entire surface of the screen, the home button is imbed embedded. It has a larger display than what you have in the iphone 7plus here, people are still getting the bigger screens. For now. That is why i call it the future of smartphones because i think apple will adopt a lot of the futures we see here, there is the scanner we talked about. And it unlocks the phone. You can use things for mobile payments, it has three biometric security features there. Although face recognition can be fooled with the picture i was able to take a picture on an iphone of myself, hold it up to the screen and unlock the phone, pretty big. Think of what you want to do with that information. Exactly. Especially in the next election. So you think its i actually bought one this morning, its enough to put peoples worries about the note 7 behind them. Samsung said preorders were better than the galaxy 7, which was before this phone and came out before the note problem. So i think the worries are behind it for now but im still a little skeptical, the iphone 8, people are waiting for that especially when you see reports from bloomberg, and the display here. And the new cameras and augmented reality like you see here, i think its a great example of what you will see coming from smartphone. Thank you. And more on the bond markets, well have reaction, how do you like that segue . Ill tell you what, flat screens, flat curve, you nailed it because lets see, as the crow flies, 116, two years down two, ten years down seven. Sounds a little flatter to me. As a matter of fact todays a big day for the twoyear. Lets look at the year to date of the twoyear, you know where we settled last year . Well, ill tell you 119. Were violating that, now lowering the higher price than last year. As you look at the charts, so many things, whati talking about . Bottoms at 114. Gee, i wonder where the stocks may be. Watch 114. Now, were down seven basis points, momentum building a bit. Lets keep that for the dollar index, finally it makes sense its actually going down when rates are going down. Melissa lee back to you. And from happy meals to hot dates. We have more on the analysts and down grades you need to know about. Street talk ahead on power lunch. The pound now hitting a buck 29, 04. It had been 12904. The Prime Minister saying theyre going to hold an election early. They will have a better brexit negotiation, and it hurt because a lot of the stocks are international, and as a result they like a weaker pounds. Remember, pound was at a buck 50 just before brexit, melissa and brian. Also a daily dive, we call it street talk, lets do it. All right, first up, mcdonalds getting an upgrade for the second day in a row. Price at 160, citing innovation, coming from 2018. Your comment, brian . Fresh beef is the item and also driving the average higher price for menu selling and discovery. All right, second item, citigroup adding it to their focus, the recent selloff is a quote, terrific opportunity to own the best u. S. Food growth story at an incline. They like to do the brand called earth essentials, now with fresh beef. Also adding more shelf space. And the ticker is 33, about well, a 38 retur based on todays look. And the shooting coverage, a 21dollar price target, the member price is more than double, the industry tail winds are favorable. One of three begins with an Online Dating product, market singles on line, up from 500 million to 672 million by 2019. And its a dating its a dating Product Global blood therapeutics, the analyst sees about 80 uptick, working on a solution for sickle cell disease. And a 30 dollar stock, analysts say theyre optimistic on the success of the phase three product, the drug trial, the analyst believes the company is poised to avoid previous failures in this space. They believe the company can also be an attractive product for therapeutics. And keeping kids active and engaged, you really hope the parents will come back to the malls. Were talking to an entrepreneur who hopes to revitalize with kids. We explain straight ahead on power lunch. Street talk sponsored by wisconsin don wisdom tree. So how old do you want to be when you retire . Uhh, i was thinking around 70. Alright, and before that . You mean after that . No, im talking before that. Do you have things you want to do before you retire . Oh yeah sure. Ok, like what . But i thought we were supposed to be talking about investing for retirement . Were absolutely doing that. But theres no law you cant make the most of today. What do you want to do . Id really like to run with the bulls. Wow. Yea. Hope youre fast. I am. Get a portfolio that works for you now and as your needs change. Investment Management Services from td ameritrade. Ft disappointing retail sales, store close yours and efrmt malls all retail were seeing a lot lately. But some are looking at kids Activity Centers called kid zainya to revive growth. You have to continue to evolve. You have to continue to bring the uses in. You bring in food uses, you bring in entertainment uses, you bring in theaters, its what we do. We continue to curate with what connection with the customer. Here now is the kid zine usa welcome to the show. The first one will be open where and when. The first one in dallas, 2018, the second one outside of chicago in two thousand 19. What does that mean . Like take a kid to eight miniature city and they learn what its like to be an adurlt and they get paid and have Bank Accounts and they understand that real life is do 124re to pay money. Of course. How much does it cost. Depends on the market. Per hour orchid. Each session runs about five hours. Five hours. Yes. So the parents come to the mall, they drop their kids off, the kids hang out and they use the amenities of the mall. Its like baby sitting. Its education mooetsds meets entertainment. Is this a secret backdoor into child labor. Thats a good question. Its also a joke because you look at the video theres kids making chemicals and pizza as and they got little kids doing news avg core jobs. They could do your job because it inspires them to aspare. Yeah. So what happens suspect kids come and thee see what its like to be an acult and they take what they learn in school and they assimilate that into real life session. Is that fun for kids. Its hugely fun. One of the guys that worked for me just took his daughter and she stayed for seven hours and out of all the things to do in the mall like skiing and other amusements was her favorite thing to do. Huow old are the kids . 4 to 12. Are you finding theres a measurable impact to maul mall traffic when one of these opens . Of course. You have to evolve. And all businesses and dift Tri Industries have to evalve and the world is going more toward entertain moenlt. When you think about m for this, thparents drop them off and go shop. Do we know what the traffic pickup is out side of kid zainya . How did we know theyre not dropping them off and leaving them. Because theres other ones around the world and theyve been stu did. Im a mall owner without this and tell me how much more im going to see per squa foot what is the metric that you sell them on . My business is not retail im not a mall owner. I get that. Im telling you im going to bring 500,000 to a million visitors to your mall. You figure out how to keep them and attract them. I get that, thats more than you otherwise would have. You if you had a traditional anchor and say its a Department Store anchor that may nobt doing well, you use that Department Store to gain youre saying the odds are greater that theyre because youre bringing the traffic in the odds are that they will stay in the mall and do other things. Youre not going to leave, youre going to stay in that mall youre got to drop them off. We monitor it, each kid is griffen a bracelet and its connect to the parents bracelet and the parents can be monitored and you can see where they go and what they do. Skru data points but you dont want to share with us. Next time ill share. So you know if your kid has been fiefrd from their kid job you can get them picked them. Or if they got a raise. Do any have a kmois to change careers. Does every kid get a raise these days . Heres what happens. Kid comes in and its an airport. Theres actually a fuel plane at the these. And they understand what its like to purchase their ticket, go through security. But the Flight Attendant kids. They kieb Flight Attendant. You could be a doctor, but you have to go to medical school. But youre not going to tell a kid theyre doing a lousy job and they get fired on demoted. No. Its encouraging. So everybody gets a raids and a promotion. , gees. But if you dont work, you dont get paid. How do you get this is i like this now. Its intriguing you ever play the game of life, the board game . You have a chase in the beginning where you decide if youre going to college or not, you take a shortcut if you dont but you never end up making as much money if you dont you generally have to take the long road. So if youve got to go to medical school how does that work . How long does it take. The medical pro zbram say certain amount of time, and once pass your medical licensing you can be a doctor. And the doctor makes a certain a. Money. So that that profession may earn more than a labor profession. And you get the kid to come back again and again. Each kid tends to come t 1200 this . Testt test test test test test test. Welcome to the second hour of power lunch. Im ma lis as lee joined by michelle and brian. Two hours to the closing bell. President trump will arrive in wisconsin shortly he is going to sign an executive order promote pg buy american hire american and facebooks Big Developers conference we heard from Mark Zuckerberg he said facebook will do all it can to prevent tragedies like the shooting in cleveland. Goldman sachs and johnson and johnson are your big drags in the market. Falling below estimates due to weak trading vef knew. They did top estimates but revenues fell short. Food stocks ever good, tyson, General Mills theyre all among some of the biggest gainers in the s p 500. President trump lands in wisconsin shortly hes going to sign what the white house is calling a buy american hire american executive order. We have that story, meanwhile Health Insurance industry executives are meeting with white house staff today as well. And john harwood is covering a special election in georgia that many people are watching. Lets start with the president s executive orders. Reporter this a twopart executive order targeting trade and immigration. On trade the white house is looking to get rid of loopholes in rules that, i Government Agencies to buy american products. Its aimd aimed primarily at the skooel steel dustry tlt the Administration Says its unfair for businesses that use subsidized foreign steel to win federal contracts. The alliance for American Manufacturing which represents Steel Workers and companies, they praise the move as a smart first step. They set a deadline of 220 days for reviewing the buy american rules. The second part of this order deals with immigration. The white house wants to move away from using a lottery to help decide who gets an h1b visa. The Administration Says that system has created a flood of relatively lowwage, lowskilled workers particularly in the tech sec toortor but already Industry Groups are pushing back. Bill gates and tim cook were all reportedly on a Conference Call with jed kushner last week and this morning t Information Technology put out a statement on h1b urging the administration to amend it, dont end it the. President is schedule to tower the companies this afternoon. This week at 320 p. M. Our time and well keep you posted on what he says. Got it. Thanks so much. Well, the president is in wisconsin, the Insurance Industry is meeting with white house officials. We have that story. Reporter well, compared toth ore industry meetings that white house officials have taken there are one comes with relatively legal fan fair as insurers seek clarity on what the market will look like next year. Theyre looking for what will happen to 7 billion in obamacare subsidies from the health and Human Services department that help sholder the cost of lowincome individuals. They have until may 22nd to decide how to handle an outstanding lawsuit on that issue. One attend emo lien april healthcare called todays meeting an important discussion but says the objective remains the same. They didnt provide any fwhfgs what was discussed. Senator Chuck Schumer told reporters today theyre working hard toib clued those subsidies in a government funding bill that must get passed by the 28th. That comes after the president told the wall street journal he would threaten to close the payouts on the healthcare bill instead. They pushing out deadlines to turn in their rates for next years exchanges. Nn, colorado, and kentucky have delayed their deadlines until june but the federal deadline is june 21st. Gop aides are optimistic that this issue will get resolved in the coming weeks but its an important one for the Insurance Industry and participants. Thats why theyre headed to the white house toy. Thank you. John harwood is following a special election. Many people say it as an early report card on the trump administration. John. Reporter michelle, this is a district in the afluent northern suburbs of atlanta that republicans have confrold for 40 years. But look at these poll numbers. The democrat is well over 40 and look at those smaller numbers for republicans behind him. Why is that happening . In part its because youve got a divided republican field and in part its because democrats in this district and around the country are showering money and volunteers on john os so here. Republicans are scrambling. The dems are trying to find a win anywhere in the united states, just something they can point to as maybe some momentum. Now, President Trump has jumped into the frame the last 24 hours trying to slow him down and build up republican turnout calling him a super liberal send a row bow call urging liberals to turn out and dilute his share of the vote. John ossoff responded but hes worried about alien nating the many republicans that live in this district. I was glad to see this morning President Trump has taken an interest in the campaign and while i dont expect the congratulatory tweet if i win, i will work with anyone in washington, including him, to get things done for this district. Reporter now, the key is if he gets 50 of the vote today, he will win it outright. If he doesnt, hell be forced in eye runoff on june the 20th and his odds of winning against a singular republican candidate will go down by quite a bit. Thank you. The overall stock markets are down for the fourth time in five days. This is the biggest loss since march 20 firs. Lets bring in bri bels sky, also contributor chief market analyst are lindsay group. I hate days like today because we have to say the dow is down. 14 the dow 30 storkz higher 206 the sap are higher higher, basically were split down the middle but gold man and j j are pulling it down. They had an issue with their sec trading, clearly. They blew it. Any wlu it. Someone was on the wrong stayed especially when you saw bank of america earnings and theyre on the right trade spot this is a stock by stock stock market and it defines what weve been taug about, that were in a stock pickers market you have to be in the right area. The other day, this is part and parcel why we could d not raise our target when most strategist were in january after the big rally. Were going to have days like this. Theres a tug of war going on with respect to fundamental analysis, macroanalysis and clearly geopolitical. And until the end of the day when we start to see things happen in washington, real earnings, well hit these companies, were going to have had zblfs did we learn today that earnings still matter . I know france matters, north korea matters, but Goldman Sachs showed us today that the numbers you print may matter. We learned today that stock picking matters. Look at what happened to gold man and then bank of america and citigroup. So you have to be in the right stocks and continue to think that investors are doing themselves a great disfavor by buying etf the they they should be buying stocks and sticking with their favorite names. When you have days like this this is when you want to add to your favorite names. Peter, take a look at jp morgan, the fwhankz posted good solid numbers, the once that were generally considered great reports, jp morgan, it is still trading lower today than before reported earnings. So is it the fundamental picture . Take a look at the tenyear yooerd. Weve got a slow down in commercial lending . Ask there a reason to be in the banks . Are the banks telling us something even though the earnings reports in general were decent. Because of the volatile trading but weve had a tremendous rally in that sector since the election. But the nintdal basis of banking, take a deposits and lending them out is slowing down and i think thats going to be the bot tomt line driver for the Banking Sector at least for the next couple of quarters. As you mentioned with the flat evening yield curve that job becomes more difficult. On the demand side were seeing some moderation across the board, consumer and in business. Is that flat evening yield curve okay, speaking to a much larger point about the economy and then the overall market . Yes. So we have were coming off a 1. 6 gde performance in 2016. The First Quarter could be less than 1 . And i dont see signs that were going to get a big pick up in q2. So its clear that the economy remains extremely mediocre and now were seeing signs of parts of the economy rolling over, particular lit auto sector at the same time the fed is raising interest rates. What a combination. To be fair, take a look at s p financials, since noon theyve come off the lows of the sector. You like financials. We do. Overweight oar right . Yes. And sometimes in investing you have to see the forest through the trees, you have to take a longer term. We dont buy them because of trfr rates we buy them because theyve been so overregulate and pushed down we cut so much costs oat of the system were done to the bone. And at the end of the day, as financials go, think about it financials in particular have not patterned this much with since 2009. Except for the big rally in march and secht 2009. We think theyre dramatically still on their own. Were going to get an opportunity to bite big box retailers. Bps wells management by far is is going to be the business to be in for the next ten years. All right. Thank you. Thanks. All right. We were telling you about this earlier, President Trumps plane has arrived in milwaukee, wisconsin, going to go over to the snapon facility and later today he signs an executive order relating to hiring american and buying american and you there see air force one having arrived in wisconsin. We expect him to speak later on today. Looks like 320, and he kind of runs on time. He has so far. Yeah. The general Mitchell Field in milwaukee, fantastic airport. You fly in there. I do i was there on sunday, nobody was there. Its clean, efficient, the people were nice. If only it were that easy. Heres stocks falling today. Can ibm reverse that . Reports earnings after the bell well get you ready for that report but the Restaurant Industry still struggling but people are still eating out. Which trainz chains will 408d up the best . Well give you recommendations. President trump is arriving in wisconsin promoting that buy american, hire american all that coming up next on power lunch. With e trades powerfulrading 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 lets[ whimpers ] dog. Find pingpong. Okay, lets go. Find your awesome with the xfinity x1 voice remote. Thats amazing your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Air b b is hitting back hard against the hotel industry. Over the weekend details in an Associations Group plan to go to war with the homesharing startup. This is an 11page dense analysis on what air b b calls hotel price gouging that is rampant and blatant. It says the industry is, quote, desperate to continue to earn even more money as home shares grow in popularity and the Hotel Executives has, quote, acted on their fears. It also includes its own analysis of how much the company has saved consumers over four major events across the country from the super bowl to the Boston Marathon and on new years eve. They sav it includes a breakd of average hotel room versus air b b prices. This follows a response yesterday to the leaked documents. The spokesperson called out the ha proccracy of the hotel cartel. This takes it even further. Thank you very much. Ibm is set to report earnings after todays closing bell. The tech reason to expected to report 2. 39 cents. Will the company meet expectations an continue to transition into a Cloud Company or will the composition drive the Company Lower . Markus and jameskieser in, gentlemen, great to have you both. You expect a modest upside on consays success to both sales. Whats the first thing youre looking for . Yeah. Maybe im going to look for how the tragic it sustained a doubledigit growth. This is a cloud the new sound of i. T. Business for them. The second thing is talk anything from a revenue from a modern per pekttive on watson which saydy factitive cog nagtive, so thats what the investors have to focus on. Youre expecting an inline consensus for the reporter but why dont you like ibm . Youre paying 13 times multiple for ibm, theres upside in terms of the strategic comparative and youre getting 3 and i quarter dividend yield. Giving the company i think its hard to argue that it deserves a prem jum but my big concern is they face pretty big sec ular challenges in software from the middle business and applications and thats being hurt by the Adoption Service and in public cloud and in services theyre a shared loser. The other thing is Earnings Quality continue to deteriorate at this company, more and more income is coming from ip income and theres a lot of debate about that. What i hear both uh saying and the story on the stock for a long time has been can it successfully transition to the cloud and funt u fundamentally change its business structure, right . And ats what youre looking to see what they talk about on the boll call and james dont think theyre going to be able to achieve that in a meaningful way. Am am i reading that right . Its going to be difficult for them. Regarding watson we talked about this account over the last four quarters and they were mentioned almost 450 times. We think the revenue is basically, you know, less than 1 , the full companyevenue. Think that the legacy businesses are zwooit quite large andts going to be very hard to transition that business. We do take some issue with the reporting rounds comparatives. The comparatives its somewhat opaque, kind of the growthy stuff and any company can pick up the portion. Portfolio thats pro growththy and break that out that doesnt mean to that theyre theyre going to return to Revenue Growth anytime soon. What would you say i mean, in terms of why does ebm have premiums the quality of the earnings is in question. The premium and always sustain the premium is right. Its a highincome revenue stream. When you assign to them its a service, its a contract, youve got to keep buying this thepy think the highly revenue stream merits a higher valuation pit get the bear case, i will do the lasttype five years, which is fair. I think the bull case is cognitive compute rerz are microsoft was seven years ago when people hear microsoft a 12month, today these thats all they can talk about is the 21 multiple p. M. Thats the upside to ibm. Thats kind. Big path ahead. All right. Thanks, guys. Appreciate it. Thank you. Purses and barracuda. Coming up, the good, the bad, and the lug ily and how many more times is the united ceo going to apologize . Why is the stocks falling . All those questions answer whend power lunch comes right back. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Ive got a nice long life ahead. With a clear advantage. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. 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[ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. President trumps plane arriving in milwaukee, wisconsin. He exited the plane, came down, he is still as you see shaking hands with the crowd. General Mitchell Field in milwaukee. He is in wisconsin to sign an order basically to buy american and hire american. Also one that targets the highskilled Worker Visa Program known as h1b. He is getting out of air force 1 talking across the tarmac into marine 1. Next time we see the president , you will as well. Time for the good, bad, ugly todays trading. Tire Shop Holdings up by 8 . Specialty retailer stone tiles the First Quarter earnings expectations. On to the bad, indicate spade lowered by sfern . The company has been mentioned a takeover for coach and michael kors. But these could make it hard to get a better premium. Barracuda network, stocks are plummeting after earnings for the First Quarter. Back to you. Well, by most measures united krnt continental was good, revenues rose nearly 3 but investors are concerned about other things and not just bad pr. So on the earnings they talked a lot about overcapacity and margins. But a lot of the questions go back to the events that took place last week. With a passenger dragged off a united flight, the ceo oscar mun yoes started off by apologizing saying we put the customer at everything that we do but he does say they are continuing to review their procedures and they will announce additional action, possibly a more clear compensation pollny at the end of this month. When he was asked who was to blame or who the blame should be placed on and whether anyone might being fired adds a result of this Public Relations disaster, heres hae had to say. The buck stops here and im sire there were lots of conjecture about me personally. I think i met with the board and the board has met independently and weave had several conversations that will be involved in some of the work that were doing going order in as well. I have issued a letter of support to your specific question. It was a system failure across various areas. So although there was never a consideration for firing an employee. That was the affirmed part of the sound bite there was ner a consideration for firing an employee with a lot of fingers pointed at him. When it comes to business united mentioned there has been a concern for corporate accounts. After the video the physical removal went viral but they seemed largely supportive. According to united, they say that they dont have any quantity final numbers at this point on the impact, on bookings because of this incident, he says that he has already had discussions as well at the local chinese consol late. Hell be heading to china to calm concerns of core customers and officials. A trip was already preplaend plai preplanned. President trump arriving in wisconsin just moments ago to promote his buy american hire american agenda. But is that message conflicting with his pledge to be pro business . Coming up on power lunch. Coming up on power lunch. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Im sioux herera with your update. British Prime Minister teresa may sayinghe s will seek an early location on may 8th. The governments majority is so small that our resolve will weaken and that they can force us to change course. They are wrong. The man askiesed of start a fire that caused a section of the interstate in atlanta to collapse has pleaded not guilty. He appeared in court this morning and he faces charges of arson and criminal damage to property. Hes been in jail since mar 31st the day after that collapse. An industrial pottery district dating back to the 12th century has been unurged in more rocco. Thats the news update this hour, ill send it back over to you guys. Thanks very much. 90 minutes from the closing on wall street we are down across the board, the dow bais most on the percentage. Goldman sachs and johnson and johnson. The final etf because financials have paired its losses in half since the noon lows so exGoldman Sachs the banks are recovering. Lets get to jackie. Crude oil seeing a little bit of pressure today. If we close under 52. 45, that be under the 50 day and 200 day moving average. The pressure today coming from the saudi arabiian minister saying maybe a little too soon to talk about that extension cut from opec. The market was pricing this in thats what got us over 50 a barrel so thats something to watch. Even watt back and forth over the 50 mark were still seeing crude with a more snaen gain in the last month. Thanks very much. We are waiting for President Trump at snapon headquarters in wisconsin where hes expected to sign an executive order requiring companies to buy american, hire american. Lets bring in the sign yore contributor, larry good to have you here. This is supposed to be the probusiness president and pin said it now hes going to ion things that make it tougher for Business Leaders to make the choices they want to make when it comes to imports or inputs for who they want to hire and hes getting zrilkted by this instead of focusing on. Tax reform. Tax reform when we learned yesterday were not getting before august. I really want to talk about that because i thought his interview was power packed. To your first moderate point, look, i dont see any harm, look, like you, i believe in the free flow of capital. Labor and good. And trade by the way, but if youre talking about the h1b part of this, it needs a review, okay. Its been around for several years, it has not had a review. A lot of complaints that some of the Tech Companies are using it to bring in cheap labor and its the ideal quote Specialized Labor is really not being used or not being enforce the. So theyre going to look at that whole thing. I think American Workers deserve a look at that. I think trump sont right track here. If they dont come up with anything it wont be changed. So thats all . I mean, you dont think that there should be a review. Yes, i do. You dont have that much interference . Lets have the review. Hes got sba agency review, Labor Department will probably have most of it. Theyll look at the facts. Its probably true they abuse it. Lets say its true. It drops the labor costs. Why should if you want to have the Free Movement, everybody is very pleased with the Free Movement of goods, everybodys very please wtd Free Movement of capital except for the chinese, but, when it comes to labor, everybody goes bananas when the same principles apply. Look, this is a visa program so tlaez an Immigration Program and we should have rules. Im not opposed to that. Youre talking about im a free trader but, but, this is a special situation. If the foreign students go to college here, they should be able to stay, trump has always said that. Question is are the Silicon Valley firms playing by the rules or are they trying to undercut american specialized techie work zblors theyre trying to lower their cost of the labor. Lets stick to your first point which i find more appealing and thats the Corporate Tax rate which i never said before on this network. And thats going to raise productivity and thats going to raise real wages. So thats where the solutions lie. I want to make a point and then go to taxes. The former chairman of knee core on cnbc today, he said something that blew my mind. He said he knew personally of examples where people were forced to train their foreign replace zblents yes. Who is going to take their job for less money and then he said, if any company is found to have done that, the ceos pay should be cut by 66 by the board meetly. 66 not 55 or his pay was dut cut during the financial troois crisis. He is a great american, a longtime pro protect nist so i know where hes coming from. However, i go back to my original point. Theres no reason not to have a study of this. There are allegations and charges. If they can be proved, then let them be proved. If we need to shift the program a little bit, then lets shift it a bit. We fleed to help ourselves. Trump is right on this. I dont have a big problem with it. Make me feel better about this, what we got was tax reform is getting delayed, delayed. Well, i think thats right. Hes truth telling on that. It need not be even at this point it need not be what i loved about this interview, couple things. Number one we worked with mr. Ma nush ina lot during the campaign, the whole tax team. And hes a growth guy so he says in this ftr, he says hes got 100 strong people at the treasury, thats point number one. Im going to comback to that with respect to the nec rivalry. And secondly he stressed how potent a higher growth out look would be in generating revenues. Where have you heard that before . You. So heres my point. You get the right Corporate Tax cut, make it simple are. The candy option. The candy option, i hadnt heard that before. I like that very much. Do that. All candy. Thats 80 of the total tax picture. Do that, theres no reason why you cant put in a 3 growth rate rather than cbos 1. 8. And by the way he says the growth the difference in growth of 1. Aint and 3 was staggering. Theres been a study done. The difference of 1. 8 growth after ten years versus 3. Swun 4. 5 trilli 4. 5 trillion in revenue its the mother of all pays for. It would pay for healthcare and tax reform, everything. Growth solves everything and, and, and, the senate particlementtarian said that she can use dynamic assumptions. Why we bothering with this healthcare thing . Why does he bother with the message if that is so great and its going to pay for healthcare and all these things, why waste time. Us bat freedom caulk us doesnt like that, right . You cant just say. You promised people. No, no, the Freedom Caucus is supply centers. I get that the. But theyre worried about theyre worried about deregulating the since Companies First and foremost the essential manned dates among them. And once again theyre gop has made a mistake and i have to blame the house leadership for at least part of this the. Particle mentarian has said we can put in deraleigh regulation measured and if i dont like everything i dont end the entire bill i pencil out what i dont like and the president and mike pence can overrule here at any moment. This is all so doable its a bunch of little mistakes lets not lose sight of where President Trump is he is 40 miles east of where paul ryan was born and raised. He is in the House Speaker state one which has a lot of manufacturing by the way, milwaukee has a lot of manufacturing where people still make stuff here and in mexico. Theres a big mexico wisconsin kweks e connection there. I dont think san accidental choice of location and it is a ole riviera is live brachb to ryan or a slap on the rift . Sometimes you just have a good schedule and he won the election in place dollars like yeah. But, look, id like to see President Trump on these subjects, tax reform and Health Reform follow the lead of secretary mnuchin. He said if you improve incentive and encourage investment and bring the mj money back home. The know the real double tax here, the real double tax has nothing do with mexico, its our goofy worldwide tax system, you get taxed overseas and her at home. Just abolish that. Look, the president needs to talk more about growth and he needs to say, what new mnuchin is saying the amount of revenues we can achieve, if you pass my tax reform plan, you wouldnt bloef how many revenues. In fact mnuchin puts it at 2 trillion. Its close to 4 trillion in add revenues. Thats where you need go here. Had a growth plan it needs to be sold as a growth plan and the white house is not giving the president so far that kind of ammunition. In fact, last point, even at this late date, if you had a healthcare deal, okay, repeal and replace, you could attach a Corporate Tax reform. Listen to me there are say true fact technically. You could actually attach the Business Tax Reform to the healthcare reform of in one reconciliation for fy 17. It is you could actual dloi that. Make it retroactive to january 1, wow. Any darn thing you want. Im just saying even at this late date, could you take the two pieces and attach them to each other. I know weve got to the go. Im a wisconsin taxpayer. Yes. I have a home there, i spend a lot of time there. Everybody i talk to thats a trump backer they dont give a squat about tax reform, not saying it doesnt matter. They wont individual toormer tax reform, healthcare, and theyre starting to get ticked off. You know, i spent a week i spent a week with them and the polls dont show it. They show that jobs greejd and taxes are way out ahead of healthcare. But let me say this. The polls suggest people are getting angry with the gop because theyre not getting anything done. Well, that is probably true. But the point twiept make it is this the. Biggest beneficiary of the Corporate Tax cuts are the middle income wage earners and ironically kevin hasset is going into the share, hes the guy that did the pastbreaking research on this if the is a middle class tax dut say wageearners tax cut. Im not disagreeing with you. The last point. All right. Thank you, larry. I appreciate. If you. Coming up the ceo of facebook is going to join us. He plans to take on snap. A snapon tools for snap. Also going to get his take on the video that was pofltd to facebook. But President Trump about to sign an executive order that could have a major impact on business. Power lunch will be right back. We have a lot more do here and were reminded of this this week about the tragedy in cleveland. And our hearts go out to the family and friends of Robert Gosselin senior and we have a lot of work and well keep doing all we can to prevent tragedies like this from happening. That was facebook Mark Zuckerberg addressing that video that was posted of a man being murdered in gold blood. Were joined by the head of facebook messenger. Julia. Thanks so much, brian. Appreciate it. David markus, head of messaging products. Thank you for talking to us today. Before we get some of the announcements you made on stage, we want wrur reaction to what Mark Zuckerberg said. How concerned are you about people sharing videos like that within messenger . First from the facebook perspective of course violence has no place on the platform and were working very, very hard to prevent those things from happening. As far as pes e messengers concerned its a little bit different because its meant for private commune skags so you cant really broadcast to the world that way. But you can have as many as 250 people in a group. Are you concerned about people sharing offensive videoslike within a large group like that. Yes. But you cant be messaged into a Group Without passively accepting it because only your friends and contacts can add you to a group. So you have to be willing to be art of the group to get content or share content. So its a private space and different type. Different type of platform. Messenger has made a big push in the past year. Right. Automed action is now 100,000 and youre trying to expand this. Group conversations. What gave it away to people interact on face time. First of all, as consumers we need to think about those things, experiences that you can now have with your friends in the conversations youre currently having. So i shared the news about apple music and spotta phi come together platform, theres going to be a lot more things you can do in a social way like book a restaurant table or the food, buy movie tickets and find out when the movie is is actually going to play and the show times and many, many more that are launching starting today. This opens up the potential for a lot of transkss to happen on messenger. Are you going to start take a piece of that revenue. We never take a piece of the transactions. Theyre meant to provide a better User Experience so that people who are bidding experiences on messenger see higher conversion and if they see higher conversion in mess gep ger then theyll buy for ads to direct fem people to those experiences whether its on news feed or somewhere on messenger. Messengers had a lot of success with lenses and the story formats. A lot of people say these are just a copy of what snapchat has done. How do you address that criticism. I think they created the format but it a format and think as far as messaging is concerned its important for you to have contact about what your friends are dpog so it makes for better conversation. Or you can broadcast to your friends whos up for coffee and they can respond right there in messenger. Just a quick final question. How is the success of having all these companies on messenger driving advertising on facebook . If you actually take an existing or future customer to messenger and your Conversion Rate is much higher because of the actual capabilities that are available on messenger, then you buy more add in news feed to direct to messenger and its a new form of demand for news feed. All of these things working together to drive ads. Thank you so much for joining us. All right. Im david markus. Thank you on deck restaurant recommendation, not where to eat but what restaurant stocks to buy. Plus more from President Trumps visit to snapon tools headquarters in wisconsin where he will sign a bill urging us to buy american and hire american. When we return. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Mcdonalds higher, out perform thinking sales rise due to menu innovation like fresh beef. Wells fargo upgraded the stock as well p. My shell . Happened at a fifth of the stores, Company Needs to raise prices to pay for higher food and higher labor costs. Chipotle is trying to recover from the food safety concerns from a year ago. Head winds facing restaurants according to a survey, they are hungry for restaurant stock. Chris, to be clear, this is a gauge of Investment Sentiment in the space, right . You found mcdonalds upgraded two days by two banks that sentiment was high for mcdonalds . Thats right. In lieu of doing traditional earnings preview, we survey Restaurant Investors for sentiment in the space. This report reflects sentiment in the space now. Seems so me glancing through the survey, Investor Sentiment seems to be higher for the quick space opposed to fast casual. More color on that and whether thats the difference . Fast food tends to be reporting better same store sales right now, stronger demand, and so the sentiment towards that base is bullish. Mcdonalds djust placed qsr as the most favorable or highest or more bullish stock in the space this quarter. And in terms of sentiment, i mean, some of the opportunities, chris, i imagine lie in the disparities between where you think the stock is going to go in invester sentiment if investors are too bullish on something you seed femaling in the earnings season, so are there cases like that, you know, Investor Sentiment gets it wrong . Thats right. We use the report as a contraryian call for a lot of stock. Changes drive performance. We point out buffalo wild wings. 63 of the folks surveyed expected missed earnings. Sentiment is bearish on the Company Given the trend. We think sales are better this quarter than what people expect, and we think the stock could appreciate on earnings because of that. Why do you think that happens . Why do you think its better to do it on the ton krar way and people pile in at the wrong moment . Thats fair. What happens is a lot of times the market reflects a certain view and will see stocks that will see the market overcompensate for a bullish or bearish view in a stock, and when they report sometimes the results are disconnected or sentiments disconnected from fundamentals. Thats the case with buffalo wild wings. Some stocks is bearish for a good reason. We expect the stocks to under perform, but in this case, theres contrary opportunities like buffalo wild wings. You like b. J. s and dominos . Thats correct. Dominos is one of the favorite ideas, and its mainly because we think the companys going to continue to gain share at a fairly healthy pace. We think pizza hut and papa johns this quarter is struggling and dominos continues to report double digit comps i kuwaiting to them gaining anywhere from 70 to 100 points of share in that market category this year and could overtake pizza hut this year as the largest. Chris, thank you. Thanks. President is touring a snapon tools factory moments from now. Power lunch will be right back. All right. Just a reminder, the president is touring a snapon tools factory in kenosha, wisconsin, urging everyone to buy american and hire american, so when he steps out, well bring it to you live. The snapon ceo is on closing bell,. A fun interview. Todays session is a driver of whats going on in market action, banks session lows, started to recover from there with the bank index and financials in general. Its pairing losses in half. Some people are watching carefully that the etf tracking the long end of the bond market is close to session highs. We are seeing pressure on that yield curve as it continues to go flat, 2. 18 is where it is now. Thats a weight on the banks in longer terms. It is. Big story over the last couple weeks. First story of the day, air bnb fighting against the hotels. We learned yesterday the hotel cartel as air bnb is trying to use every method of regulatory capture, use legislation to cement power and air bnb is fighting back. Good old american story, love it. Its their home. Their apartment. They own it. If you own it, government shouldnt be able to tell them what they can and cant do. The industry trying to pass regulations making it harder in the name of protecting people, right . Protecting profits. Interesting battle to watch. Thank you for watching, everyone. Dont forget. S snapon tools ceo coming up in the next hour of closing bell starts right now. Hi, everybody, im kelly evans at the new york stock exchange. Im bill griffeth. Interesting week here. We got earnings apparently driving stocks lower today, gotman, jj dragging the dow lower, this is a great story. Dick bove downgraded stocks a couple hours ago. Explaining why coming up shortly here. You dont see moves that big in the dow. Yeah, exactly. Both of those companies. United health cares profits, meanwhile, on the up, as the insurer ditches obamacare exchanges