Happy friday, welcome to power lunch. Im melissa lee. A look at the markets this hour. Its fairly quiet ahead the threeday weekend. Marginal gains for the dow which is up by three hequarters of a point. S p level. Nasdaq is up by two. All three indices up more than 1 for the week with the nasdaq leading gains. The defense stocks keep on rolling. Boeing, general dynamics, lockheed and northrop all at lifetime highs. Im courtney reagan. Here is what else is happening. The second reading of First Quarter gdp at 1. 2 despite beating estimates its the weakest reading since the First Quarter of 2016. On the economic front durable goods falling for the first time in five months dragged down by orders for transportation equipment. A new forecast from t11 to 17 named storms during this Hurricane Season that would be above normal. Courtney, welcome. Lets hope they are wrong. It is championship time. The Pittsburgh Penguins are heading to the stanley cup finals after an unbelievably dramatic game seven, Double Overtime win over the ottawa senators. Also the Cleveland Cavaliers will take on the Golden State Warriors for the Third Straight year. Hey, we didnt want to get left out of the championship hoopla so we set up our very own faceoff friday. Here is how it works. Two stocks in in various categories going headtohead working to find the best p picks. The matchups are set. A. Mazon versus googles alphabe. Nike takes on adidas. Apple takes on facebook. Analysts take their pick between mcdonalds and shake shack. Our teams pick their winners. Which would you pick, america . Let us kick it off with your first faceoff and that is amazon versus alphabet. And bring in paul meeks, ceo and Portfolio Manager at sloy dahl and holst. Were having friday fun in a friday faceoff. You probably like both of them, but thats not the point of this ex ercise. If you had to pick one of those two, which one would it be . Id pick alphabet just because i see a higher upside because right now the google Computing Platform is buried in other revenues and once that is revealed and its a smaller business than amazon web services, i think theyll have a nice pop in the stock ala what you did when amazon first started breaking out its cloud revenues a couple years ago. Yeah, okay. So youre going to pick alphabet there. Thats not a knock on amazon, its just, again, i imagine you live in seattle. Youve seep the growth firsthand. Does 1,000 a share matter . Were in the media. Were simple people. We like big, round numbers. Do they matter . The numbers dont matter. The interesting thing about google it does have the juicy Digital Advertising margins to support it. Once you get past the google enterprise and into amazon youre in it a situation they have actually pretty pull try, very small margins offsetting the business. Theyre both going to be leaders in the cloud with any significant dip i buy all of them. Paul, whats your strategy for getting in when we are at such very high levels . The gains weve seen from amazon and google alphabet, am i wa waiting for a pullback at a certain rate or number . All these stocks over the last couple of years youve seen nice support if you put your technical hat on at their 50day moving averages. So all three of those companies alphabet, amazon, microsoft, i even like sales force. Com for its domination of the software as a service business. All those companies when they retreat are better buys. In terms of alphabet, though i almost said google out of force of habit in terms of that stock, though, paul, what else are going to be the catalysts . Were at a point all these stocks are trading so robustly in terms of valuations and everyone is looking for catalysts beyond the quarterly reports we just got. The fundamentals are great when you peel back the onion and look at their cloud business. The break that brings us a dip, that brings us to the 50day moving average support the buy is probably something external macroeconomic that is more this market related dip. Thats a dip thats going to bring the whole markets lower in your view. Thats right. The volatile tech names. Everyone knows tech has done extremely well the last 12 months to date. Even though i may be a longterm tech analyst the tech secotor deserves a little comeuppance and when the stocks go down, buy them. I wrote on my Facebook Page how im a little worried, not wary, paul, that so few stocks are driving so many of our market gains. Ir pi your pick is in for alphabet. Best wishes. Thanks. Speaking of technology, according to facebook, amazon, microsoft and alphabet half of this years gains and investors seem to be piling into the names they seem to be leading the overall market, 10 billion just last week. Northern trust Asset Management the chief Investment Officer with assess management. Great to have you with us. Tom, ill start off with you. You say we should be mindful this could be the seventh inning of the expansion. Does that necessarily mean the stock markets run is close to an end . No, it doesnt. We do a lot of work and our best guess is were probably eight or nine quarters away from recession. The stock market can move higher beyond that. You Like Technology and we were talking about small caps. This is a group a lot want ed t like and maybe they do still like saying theres going to be a steepening yield curve, rising rates. Theres going to be deregulation, et cetera. What are we waiting for to snap this group back in line with the markets . I actually think its the factors you listed. The rate hikes are delayed. The last fed statement confirms well see 25 basis points in june. We believe we get three hikes next year. We still believe we will see some additional relief. Its delayed a little bit as most of the legislative agenda is. Were still in the delay camp. Jim, you think the market is not giving enough credit to policy. So why do you think that is . Spending, health care, et cetera . The distinction i would make is the investors are way too focused on politics and not enough focused on the real economy. Also the focus of what the administration is actually doing versus what they are saying. The outlook on trade has been much more benign than people had feared. So when we make the distinction its around what the administration has done versus what theyve been tweeting and the environment actually has become more probusiness than some feared. At the same time, jim, you like european equities, emerging markets more so it looks like than the u. S. Equities. At this point bank of america had a recent fund manager survey i think last month and it seemed like everybody favored european equities. That was the favorite amongst fund managers. Does that matter to you theyre quote unquote crowded trades, that you should beware because so many people want to get in on that particular trade . I think its young in the longevity of the trade. U. S. Stocks are up 95 . European stocks are up 50 . Emerging market up 19. Theres a lot of ground to be made up. The momentum in europe is stronger and shockingly the political environment actually looks more stable in many investors minds. Tom, quick question as we wrap it up going back to politics on a scale of one to ten, ten incredibly important and one not at all, how important to the market is the socalled trump and gop agenda . Id give it a six. I wouldnt put it in the unimportant camp but i do think as jim was saying the fundamentals are actually stronger than the politics and we believe thats what you should invest for, the fundamentals. I think a nice tail wind out of washington but i would put it above a five or a six and say its not as important as the headlines indicate. Have a great weekend, thank you. Now lets check in with a news alert. Hi, courtney. The big takeaway u. S. Oil drillers continue to add rigs. According to the latest figures from bakers hugh they added rigs for the 19th week in a row. The number increased by two to 722 up 406 rigs from a year ago. Crude prices, well, they remained there although still under that crucial 50 mark. Thank you very much. Have a good weekend. Still ahead, thinking of buying a german car . Well tell you why you may want to consider doing it sooner rather than later. Plus, the race to 1,000. Ahead were talking about the race to two hours. Its a friday faceoff between nike and adidas. I joined the army in july of 98. I did active duty 11 years. And two in the reserves. 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. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. Hey dad, come meet the new guy. The new guy . What new guy . I hired some help. He really knows his wine. This is the new guy . Hello, my name is watson. You know wine, huh . I know that you should check vineyard block 12. Block 12 . My analysis of satellite imagery shows it would benefit from decreased irrigation. I was wondering about that. Easy boy. Nice doggy. What do you think . Not bad. Welcome back. President trump today saying germany is, quote, very bad on trade and specifically calling out the german auto industry. Weve got phil lebeau on that angle and dominic chu. Dom, lets kick it off with you. The numbers are staggering with regard to why trump is focusing on germany. Lets take a look at some of the numbers behind it. Germany does have a sizable trade deficit with the United States. Last year 114 billion of u. S. Imports we buy versus 50 billion of stuff we sold the trade deficit about 65 billion. Its big but lets put it in context. Some of the other big trade deficits made with other trading partners. 2016 trading goods, china, a whopping 347 billion deficit there. Japan the second biggest at 69 billion. Germany ranks 65 billion. Third place and mexico is 63 billion. Perhaps why donald trump is focusing a lot on those four countries in particular canada included although not to the degree that mexico, germany and japan do. Now lets put it in context with the biggest trading partners out there. China by far in terms of total imports and exports added together the biggest, 579 billion. Canada and mexico part of the nafta agreement also up there about 500 billion and then japan and germany as well. So thats the reason why President Trump is focusing so much on germany and of course our nafta trading partners as well and some of the trade talks are getting under way with china and japan. Phil lebeau, i think this one took everybody by surprise. A little bit. What dom was pointing out there, the trade deficit, consider these numbers. Last year the u. S. Imported 21. 6 billion worth of vehicles from germany and exported 6. 1 billion. A 15. 5 billion trade deficit there in just autos alone between the u. S. And germany. A lot of people are saying, well, arent the german automakers build iing more in t United States . Arent they adding jobs . Yes, they are and are expanding. When you look at how many vehicles are built here that are sold here, theyre well below the big three average which is 66 . Daimler at 39 . Bmw, vw at 13 and in terms of whats brought into the u. S. And is sold here from german automakers, youre primarily looking at your higher end s sedans and sports cars and thats why you have the trade deficit youre looking at now just under 850,000 were imported last year that work out to just under 5 of all the u. S. Sales. Thats what youre looking at in terms of immorted vehicles from germany and now lets talk about the plants in the south, vw, mercedes, bmw. They are expanding their operations. German brand plants built just over 800,000 auto last year. A good portion of those, by the way, have been exported. So that does help in terms of z u. S. He can ports. This has become the base for suv and crossover sales or manufacturing and sales around the world. Take a look at shares of daimler and general motors. Were going back to the election of President Trump roughly trading in tandem, if you will, when you look at these two and, guys, this is going to continue in part because not just with the trade deficit in germany but, remember, german automakers are also using existing or building plants in mexico to import cars here to the u. S. So, phil, just in january President Trump, maybe then president elect trump, threatened bmw with a 35 import tariff. Does that have any will legs whatsoever or just an empty threat . I think most people say that would be devastating, increasingly within the industry, very few people think it will happen. They think there might be an adjustment in terms of the trade policy but do not think theyre going to see 20 or 30 tariff put on these vehicles. I assume theres a reason mercedes and bmw came to the you states in the first place. If you go down to spartanburg or tuscaloosa, alabama, greenville, is one of the hottest cities in large part because of what bmw and michelin have done for the entire area. Its not just about trade, is it . Theres a lot of halo, second and third derivative benefits. The ancillary industries out there, something volkswagen with its chattanooga facility about the stuff they do there. Remember this is a currency play as well when you have strong dollars in play it does perhaps behoove you to have manufacturing certain parts of the world to help kind of hedge or counterbalance some of the effects of currency as well. So, i mean, just that spartanburg plant for bmw they make just about every sport activity vehicle they have out there and they export a lot of those vehicles, right, phil . Absolutely. Thats their largest plant in the world. The largest plant in the world and its getting bigger in spartanburg. Guys, thanks. Dom chu, phil lebeau. Its a rough year for the Energy Sector down 12 . Any names worth buying . A fund manager gives you his top plays. And all aboard as the Summer Season officially kicks off. Lucky landon for a look at the business of voting. Landon . Reporter hey there, melissa. Things are getting busy here. Boat sales are on the rise. Who is buying and who is not coming up next on power lunch. 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 . Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right financial advisor, life can be brilliant. Ameriprise i just saved a bunch of money on my car insurhuh. With geico. I should take a closer look at geico. Geico can help with way more than car insurance. Boats, homes, motorcycles. Even umbrella coverage. This guys gonna wish he brought his umbrella. Fire at will howd you know the guys name is will . Yeah . Its an expression, ya know . Fire at will . You never heard of that . Oh, there goes will bye, will ths not h name take a closer look at geico. Great savings. And a. Welcome back to power l lunch. Boat sales are at their highest level since the recession. Are millennials who cant afford homes going to be able to buy boats . Landon dowdy is live in florida. I think she has some answers for us. Landon . Reporter hey there, courtney, good afternoon. Here at the new smyrna marina boaters are ready. We talked to the manager. He expects all these slips to be filled for the weekend and that could be because boat sales are at a post recession high. The industry says theyre having a hard time reeling in these millennials. Firsttime buyers account for a third of all boat sales down 20 since 2005. Yesterday i visited a manufacturing plant here in florida and they say its all about the technology and being connected to lure in the younger generation. Features like blue tooth, navigation systems, and docking, a boat becomes like a video game controller thanks to the help of a joystick. What about the cash strapped millennials . The executives say its the millennials can take out the boats like the pontoon and Strong Demand in the segment, in fact year over year sales pontoons are up 11 for the month of april. Guys, im doing a live shot driving a boat and telling you about the boat sales, they would not let me drive the 72foot yacht. I just got the pontoon but not a bad day at the office. First, landon, the ultimate boondoggle, number one, good for you, though. Why are you doing a segment and sitting on a party barge made for people my age . Well, because this is what theyre doing. The boat sharing is all about the pontoons. You can fit more people on it. They make them now to where they have bigger engines so that you can actually waterski. Theres more to do and its affordable because youre boat sharing. You dont have to buy the boat. You join this club and you get to take the boat out as much as you joined the club for whether its the weekend or whatever that might be and a pontoon is not a bad boat, i have to say. Were enjoying ourselves. Is the boat sharing program run through brunswick . Who runs the programs . How do i sign up for this and can i get a pontoon with a slide . Reporter there are different types of programs. Its not through brunswick but they do give their boats to the program so you can rent their boats. The pontoons are what theyre doing and the smaller brunswick boats, millennials are not buying these 200,000 boats which i did get to drive yesterday. The it technology that they have on these boats is absolutely amazing. I was able to dock the boat myself. Its a little bit of a joystick. And thats how theyre reeling them in. As far as the cash strapped ones, these programs, thats the way to go. Its much more affordable for them. Are they hoping by allowing millennials or getting them interested through rentals that they will convert those to buyers . Reporter melissa, thats exactly right. You even see that with harleys. Its about the experience and they say once they get a taste of it they have to have it. Unless they have that taste, they have to experience it and then that makes you want it and thats the hope that they buy more boats. They say its working. I have a feeling by the end of the day landon will be on the yacht in back. Reporter oh, this one right here . The owner has already offered for us to go for a ride. Nice. Reporter so if im not back on tuesday youll know where i am. We will know where to find you. Thank you very much, landon. Great story. Reporter bye, guys, have a great weekend. From florida to california, forget about a border wall, how about a border mall. Jane wells live at the Mexican Border with another very interesting story or texas. Reporter exactly. As i walked out on the streets of laredo, brian, this is a place where thousands pass between the border of u. S. And mexico and where two developers decided to put a mall betting no wall will stop mexican shoppers looking for american low prices next. Mynique nes. My dell Small Business advisor has gotten to know ourususess soell that ifeels like he a part oouam. Withne phone call,e setse ith taored procts and services. And d en my visor is focused ith on my tech,ts i can focus on my Small Business. Im sue herera. Hillary clinton delivering the commencement address at her alma mater wellesley college. The address comes 48 years after she gave the commencement speech when she was graduating from the school. Today she took a not so subtle swipe at President Trump. When people in power invent their own facts and attack those who question them, it can mark the beginning of the end of a free society. A man who fell into the thames river in london was plucked moments before drowning. Crew members from the uk coast guard who safely rescued the man say they believe he was just five seconds from drowning with only his hand visible above the water when they arrived. First Lady Melania Trump wearing a colorful floral applique jacket cost a cool 51,000. The color burst comes after a steady wardrobe of mostly black during her husbands overseas tour. Thats the cnbc news update this hour. I will send it back to you. Wow, sue, incredible. When i heard she chose it, it reminded me of a designer from the location where shes going. I hope she didnt buy that especially not with taxpayer n money. No comment are from the white house on that. Well keep you posted. Inauguration day that got a lot of love on social media. Buy the jacket and get a fiat. Its a beautiful jacket. I dont know 51,000 beautiful. Its beautiful nonetheless. The always diplomatic melissa lee. Its true. It is true. Thank you very much, sue. Youve got it. Well see you again soon. A quick check on the markets just hugging the flat line ahead of a threeday weekend. The dow jones ever slightly positive the same with the nasdaq and s p has slipped just a hair into the red. All three indices on pace to end the month in the green led by the nasdaq which is up 2 . Some positive news in retail today, a nice way to end the week for me. Thats right, positive news. Costco, ulta, deckers. Ulta has been a real standout at more than 42 . Comps were positive at ulta, at game stop, at costco, a nice break in the trend. Its interesting because we saw best buy boosted by the Nintendo Game console and for game stop it seemed analysts were more skeptical say iing th will be transitory whereas best buy, no, this is going to be great. They have legs, et cetera. Isnt that so funny. And certainly Software Sales were down at game stop and thats the future of gaming and maybe thats causing some concern, i guess the analysts didnt like the fact they didnt up their earnings, reiterating them for game stop but it is funny how they look at the same situation very differently for different retailers. The context is different. Im going to give some genius insight to our audience right now. Theres only finite money for most people. Im being sarcastic. If youre buying a home or a car or 1,000 gaming computer, theres just not, for most households, or a 700 phone, not money left over for the stuff you dont really want or need. I think were seeing this bifurcated environment where youre buying a home, a tv, a couch, a computer or electronic arts, stock, somebody is, but not jeans. Youre not buying jeans. Not as many as you did once at one time. After a 51,000 coat theres not a lot left over in the sullivan household. Theres a negative in my house. After opec agreed to extend production cuts, the reason some investors quietly were expecting deemer or longer cuts. The energy etf, one of them, the xle, is on pace for its worst day since may 4th. The idea is to buy low not high. Is you now the time to buy an energy . Comanages the five funds all rated five stars, 25 stars, rob, congratulations. Some individual picks, part of this is predicated on the thesis. Oil will move higher. Almost to the end of may. Do you have to revise that forecast. I dont think so, brian. I think the market is really under appreciated what happened at opec yesterday. We need to see Global Oil Inventories begin to decline. Were in the perfect position right now entering the seasonal period when inventories are always declined and theyre going to even more so now with opecs actions yesterday. Ultimately well end up with Global Oil Inventories at the fiveyear average. We havent been there in a couple years. I think thats a positive thing for oil prices and well see Oil Prices Move higher as a result of that. Thats assuming opec members dont cheat, right . Isnt that what theyre famous for . Very good point. Thats been the case in the past. If you look since the Compliance Committee has been in place, opec compliance has been over 100 . So opec members in general are motivated to Keep Oil Prices higher. They need oil prices higher. As a result i dont think they will cheat. The story is here had in the United States. Lets make money for our viewers, shall we . We know you like natural resources, a name well known. A lesser known name, u. S. Silica, usla. Whats attractive . U. S. Silica operates, if you look big picture, oil is down about 7 . U. S. Silica is down a multiple of that. We think that u. S. Silica in tech has been unfairly punished this year for the fall in oil prices. The great thing about the Oil Field Services secotor is the fundamentals are improving. Youre seeing increased revenues and expanding margins and u. S. Silica is at the forefront of that. So as you see higher cash flow from Companies Like u. S. Silica as the u. S. Increases its rig counts, drills more wells, uses more sand, we think that investors will reward that increased cash flow and really make up the difference between the weaker performance the stock has experienced year to date relative to oil prices. You know, rob, we could have had this conversation a while ago. What gets me about investing in Energy Stocks now weve seen a stabilization in Oil Prices Since the last opec meeting. Weve been range bound, right, when had it comes to the price of oil and you would think that would be very good in stabilizing for the Energy Stocks and we have not seen that translate into stock performance. So why the disconnect . Why are we seeing that between the stabilization of the price of oil and the decline weve seen in Energy Equities . A good observation, melissa. Youve seen energy infrastructure. Youve seen it perform very well this year. Its one of the positive secotos in the Energy Sector. You cant find a lot of positive performance this year. Because of what you just said, because Oil Prices Remain stable. I think right now its sentiment. We have to turn around sentiment for the sector. What turns sentiment around . Youre telling us to buy these individual stocks. Some are in place and some are not, though, and they have been sort of changed for the year in terms of performance. What turns that sentiment . Yeah. Ill tell you what i think will turn sentiment, watch weekly inventories every week out of the u. S. It comes out every wednesday morning at 9 30 in the morning. Oil inventories continue to decline every single week, week after week, for an extended period of time here as we enter the summer driving season. I think that was that will be what investors look for, a long, sustained period of declines in oil inventories. Youll see sentiment begin to change. The fundamentals reported by these companies have been outstanding and we know a tortoise when you get a disconnect between sentiment and fundamentals is a good time to start looking at adding to their allocation in the energy secoto. All right, rob, thanks. Have a good weekend. Thank you. Before we move on, i got my italian designers mixed up. The coach was gucci. Italian. Messed it up. Where is the breaking news banner . I know. All right, now may not be the best time to be building a mall anywhere. It may be an even worse time to build a wall right near the u. S. mexico border. Jane wells is live in laredo, texas, to tell us what she sees there and why. The crossroads for the nations largest land port over here one of the many exits back into mexico, Border Crossing. You probably cant see it well but on the far side are pedestrians walking in from mexico. Many of them are coming over here to this brandnew 120 million outlet mall built in a city by developers where 40 of revenues come from mexican shoppe shoppers. This is her first time coming to the mall. She is so happy that they have stores like this close to her home in mexico. Look, wall or no wall, the Border Crossing is going to remain open here, but fear and tension is one reason the mayor thinks sales tax receipts are down at all border towns along texas. Ive heard a presence that the uncertainty of whether they should come to laredo or not, i have to admit there is some sort of degree but i think its getting better. The wall will have no impact if its actually built because, as i said, these bridges will keep going. This commerce has to happen. I dont think a lot of trump because i believe laredo will always be laredo no matter what. Reporter they say so far sales have been brisk. The mall has done 4 million in two weeks. So stay tuned. Courtney, as you probably know, outlet malls are outperforming the rest of retails. Theyre more of a destination. They really are, jane. Im curious. You pointed out that walkway and we were able to see it. What actually happens when a shopper is crossing over . Do they have to rejs it ter . Is there any monitoring there . Reporter you do have to have a visa to get in from mexico to here. You have to go through the whole process. But being right at the border you only need a visa. If you go 25 miles further north you need a special form, i94 form. This way you dont have to go through all that process because youre right here and most people right across border or down in monterey have that kind of visa because they have family here. Theyre back and forth all the time. Very interesting, jane. I remember when they announced they were building this mall. Im glad you were able to take us there. Thanks so much. Reporter you bet. To the bond market now, Rick Santelli tracking the action. Reporter hi. Theres still a small group of traders in the equities behind me here. Pretty much the rest of the floor is gone and in another 15 to 20 markets the cash market will be closed in treasury. The interday the one thing to notice is were close to unchanged on the day and the week and the low yield made right at the data point. Not necessarily because they were motivating but because they were then in the rearview mirror. It is float iing to higher leve as we speak. Finally, i always find charts i find interesting because Traders Point it out. Rememb remember, think why people are buying gold, to avoid all the issues. Look at a oneyear chart of the etflqd, the boring one, inve investment grade. It seems like those who are a bit more conservative or worried, well, they seemed to be play iing in a chart that looks almost identical. Brian, back to you. Rick, thank you, and have a great, long weekend. Coming up, can the sub twohour marathon really happen . Some say it might and it might happen soon. Incredible. Were going to talk about it. And if nike or adidas or somebody else will benefit when and if that insane mark is broken. A naturally aspirated 5. 0liter v8 engine. A 10speed directshift transmission. A meticulously crafted interior. All of these are feats of engineering. Combining them with nearperfect weight distribution. Is a feat of amazing. Experience the firstever 471horsepower lexus lc 500 or the multistage hybrid lc 500h. Experience amazing. For our next faceoff leads us to the sneaker wars between nike and adidas. So far adidas is crushing it. The stock is up 48 over the last 12 months. Nike is down 6 . And beyond the stock market theyre competing to be the First Company to have a runner break the twohour marathon mark. That is incredible. Joining us to discuss. Thank you both. This is an interesting segment. It just blows my mind talking about the times it would take. Youd have to maintain a 4 35 mark. My question is to you, alex, does it really matter to the running world if this happens and, if so, why . The truth is its an arbitrary barrier. Two hours, its all hard but theres some thats what sports is about. We make some rules and we bring some intrinsic meaning to it. Weve decided two hours is the top of the mountain even though 2 09 is good. People are paying attention to it. We know that nike held this big event earlier in may trying to get there. Of course they did things runners werent not happy with, hi hydrating and things that normally wouldnt be allowed but i guess at the end of the day does it matter, help them sell more shoes, nike or adidas, to run a stunt like this . Nike has a long legacy in providing running technical acumen. I think it does help their legacy. I dont think it does a lot to drive significant sales. Running is about 18 of the total perfeormance running has been a little bit soft over the last few years. There hasnt been a big trend. Perhaps this could spur another cycle. But it does help, we think there are longer term prospects in china where marathon running is growing exponentially the last two years. Corinna, nike or adidas in a faceoff, there are hotter Shoe Companies out there we can get to in a moment. If one of these names, is it a nike . We Just Launched last week with a buy. We prefer nike and think the val wags uation is low and quite favorable here. Alex, im wondering if youre one of the Shoe Companies and i nknow adidas had the last four sponsorships for the marathon world record holders, how hard is it to convince an athlete to accept your sponsor, to wear your shoe . Im a runner. Im certainly not a pro but it would be hard to get me to switch. Yeah, i mean, for the pros, its, frankly, all about the money and all of those guys it at the top are getting richly rewarded for their decision to make a shoe and that leads to some funny situations where guys are wearing shoes in really important races and the shoe falls apart. That happened to one of the best marathoners in the world a couple years ago, and, boy, you wish you took the other company. For the rest of us its a different ball game and it goes to sentiment and loyalty and things like that. What shoe fell apart, alex . It was actually a nike insole in the shoe of elliott, the guy who ran this 2 flat marathon earlier this month. I asked him about that and he just smiled and said, hey, these things happened. Hes had a long relationship with nike so he was willing to look past it. It was a black eye at the time for nike. Were watching video of runners and i know youre a runner. Youve done some experimenting in shorter distances at a sub twohour marathon pace. For our audience at the home that doesnt run, even me, cant get my head around it, to break a twohour marathon, is that literally almost a full sprint for the 26. 2 miles . How fast is that . It really is. There was a nike test event in march where they invited journalists to try to run behind the pace car and see how long they could maintain the pace. We have video of that right now, alex. Yeah, yeah. I was very proud of myself because i stayed with the car for a minute. The thing is to give some context, i was a former international runner. I competed for canada. I still run every day and for me theres no way i would have made it a mile out of 26 miles. And so if you go to a local road race with thousands of people theres probably only a few people at that race who could make it more than a minute or two and theyre going for two hours. It literally is you start sprinting, you keep it up as hard as you can and these guys keep going at that pace for another 1 59 1 2 minutes. Corinna, adidas has been hot lately but its the fashion shoe. Foot locker suggests were coming off a peak. What are you seeing in terms of adidas for the runway Going Forward for sales and the stock price followthrough . Right. Exactly. Adidas made a big push to be a little bit more fashionable adi fashionable and life style focus and nigh competents remained the brand. We think over the longterm nike will win that war. The fashion is changing a bit, its plat tuesdaying. The shoe trend has been soft this year which we think will hurt adidas numbers in the next quarter. Beyaw we prefer nike over adid dah. Thank for joining us. Congratulation for stick being that car for a whole minute. Id like to break four. Id like to break four hours. All right. Your house is not appear atm. Even though a lot of people got burned by tapping home equity ten years ago, were going it again. Were going to take you inside of Tommy Hilfigers mansion. It is spectacular. Coming up. The whisperer . Why do they call him the whisperer . He talks to planes. He talks to planes. Watch this. Hey watson, whats avionics telling you . Maintenance records and performance data suggest replacing capacitor c4. Not bad. Whats with the coffee maker . Sorry. We are not on speaking terms. Flexshares etfs are built around the Way Investors think. Maker . With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Can home prices on the prize some home honers are using their homes as a form of atm. Home equity lines are forming. Are we smarter than we were a decade ago. Diana joining us from washington. We did a story, all these people are buying boats, now weve got this story, i hope theyre not related. No. I think people are being a lot smarter with theyre homes. If youre not traveling this weekend youre probably doing work in our outside of your home, i know i am. High prices and record low listing for sale have more and more homeowners choosing to stay put and renovate. Home equity lines of credit are booming. He lock origination up 10 . Hitting a eight year high and they continue to rise. Thats because homeowners gain the collective 570 billion throughout 2016, bringing the number of homeowners are tap bl equity up to 130 million. All that new found housing wealth has homeowners taking out more cash. The average at the end of last year was 120,000, thats surpassing the prerecession peak. This comes as the last batch of boom time home equity loans are hitting that reset period. Thats went boarers have to pay to jump 74 . This year may not be as bad because of higher home prices but one and five are facing a reset and they still dont have enough home equity to refie out of those lines. Theres a lot more online, cnbc. Com. Melissa. Thank you very much diana. Time for powerhouse where we take you inside the homes of celebrities. We got the home of tommy hilfiger. This 27. 5 million beach gront belongs to hilfiger and his wivdi. Its located on a strip of stand in miami gold golden beach. Inside of the oh way sis is an explosion of color. From the red Movie Theater to the red, blue and yellow kids bedrooms. Plus, bathrooms covered in scratch and sniff fruit flavor wall papers. This house without a doubt is one of a kind. The vintage disco bar was flown in from monaco. In the kitchen theres a t. V. Hidden. And the master suite, another t. V. That pops up from under the king size bed. Theres a master close set for him and her and each has their very own bathroom. The views inside may be impressive but nothing beat it is view of the ocean. Such a cool house. Tommy and his wife paid 17. 3 million for that in 2013, did a huge renovation. He and his wife reportedly just purchased a home in palm beach for 34 million. Theyre going to nay in florida. He owns the riley hotel so when hes in miami he can stay in his hotel. Hes selling one by keeping many others. So cool. Coming up on a scratch j sniff power lunch our face off continues. Should you buy in mcdonalds or shake shack . If you had to pick one which one would it be. Which one could win . Thats on the second hour of power lunch. You think traffics bad now, the futures going to be a nightmare does nobody like the future . Cmon, the future. He obviously doesnt know intel is helping power Autonomous Cars and the 5g network they connect to. With this, wont happen in the future. Thanks, jim. Theres some napkins in the glovebox. Okay, but why would i need a napkin . You could have just told me a bump was coming. We know the future. Because were building it. Hi melissa lee. Its face off friday on power lunch. Look at apple and facebook, both have stellar returns this year but which one have more room to run from here. Zuckerberg making a case for university income. Is he right. And flight delays how much would you pay for peace and privacy. Power lunch starts right now. Like this music on a friday on to a long weekend. Lets check out some sessions on ahead to a long weekend. Disney and dupont microsoft at the top of the list in the dow. Disney up by just about a percent. Take a look at gain stock. This stock is under presentation as investigators were un impressed. The s p 500 looking to complete a perfect week. If we close higher today it will be the seventh straight day of giens dating back to wednesday. Bobs live at the New York Stock Exchange. Happy friday bob. Hello courtney good to see you. Remember that drop last week, forget about it. Its like it never happened. The markets are rallied since then and big time. The transports have been lagging the whole year but its been big so far. 40 in the last trading sessions. Nasdaq up over 3 . S p up 2 . This is just in about six trading sessions. Markets arent people but it does have moods every witness in a while and the mood of the market pretty clear, i dont want to hear any bad news. Trump agenda slows don right now. Comey and russia going away, they cant get the health bill passed. I dont want to hear about it. Choppy Second Quarter economic data, trouble there, i dont want to hear about that either. People keep saying it, i call it this morning, bob its not that bad stop worrying look at whats working right now. The global macro picture is improving. The dollars been trending weeker. Earnings growth is improving, the guidelines have been better than expected. Job situations in great shape. Next week may be different, the president s coming back. The whole comey issue is not going away but right now ive got phone out there who thinks that the the market is any great risk. Well see about that next week. Back to you. Up next in our face off friday it is apple versus facebook. Both stocks taking off this year 31 . Can you still make money here and which one should you own. Joining us is nancy tangler. Guys good to have you with us. Nancy ill start with you, youre in the interesting position, making the decision. You own both apples biggest position in your portfolio but recently you been trimming back on apple and increasing your shares of facebook, why . Well evaluation melissa. Thank you for having me, happy memorial day weekend. We had recommended it at 89 about a year ago when google had momentarily passed. Everybody knew what the problems were. The stocks up 75 or so from that point and we have found ourselves in an extremely overrated position. Its moved out of both of our ranges. So as a value manager we tend to get in early and tend to get out early. Still our Largest Holding but weve been selling in a disciplined fashion and id expect over the next six to 12 months well be net followers of the stock as other growth managers are jumping in. In terms of evaluation though, nancy, i dont think there are many people out there who will make the case that apple in and of itself is overvalued. It sounds like most of the sales driven the fact its become a big president ial of your portfolio. Thats what we have to grapple with each day. Fresh money coming in. Is apple cheaper than facebook, depends on which metric youre looking at and which growth rate your comparing it to. We still like the stock, it is what do you tell clients who are in the same position as nancy who say, ive seen this stock run up so much identify got to get rid of it. Why do you say to stay . Ill tell you they make the statements for the markets these days. For apple simply, one, the stock into a big outperforms the market by about 1400 basis points ahead. So end of march weekly in the right. The second, apple will be a very sizable product cycle and investors will appreciate how big axps are going to come out of it. And on a multiple evaluation bases its still trading at a discount. The market theres room for this to keep running. So somewhere between those two thing the upside is in a 195 range for apple. And even if its to get apple to that 100 trillion mark can it still do it . Yeah. 192, 195 you get there. Our take was you need a 12 eps run rate. Large part of that come from two factors, buy backs and increases. I do think theres enough ingredients for them to get there. If repatriation happens that will as well. Nancy, facebook. How much do you like it . Its 3 to 5 of our equity holds. We think some of the trends are encouragesing certainly the monthly user trend. The average per user growth faster than that and they have opportunities of opportunity to monetize instagram and of course they are 15 of total Global Online advertising. So theres a lot of room for facebook to appreciate from here and grow faster. 49 revenue growth, thats hard to dismis. So we are a little worried about engagement, im not so engaged on facebook myself but we do think the trends are in their favor and evaluation again, according to our work is more attractive than apple at these levels. Nancy and amitt thank you. Thank you. President trump wrapping up his foreign trip and will head home this weekend. Meanwhile, congress is in recess so what can we expect from President Trump. Eamon javers live in washington. Its been nine days, five cities, the traveling white house staff rapping up in sicily today g7. The economic adviser just given a Conference Call with reporters a few moments ago. One of the headlines from that Conference Call is its said the United States is not going to lower the sanctions on russia, its going to get tougher. Coleman also laid out what we described is the vision here on trade internationally. Heres what he said. And we have to tariff on certain items and you do, you should come to your tariff level or we should go to yours, he did explain clearly that he would much prefer other nations to come to our levels which are the low tariff level. He did not want to go to a world of high tariffs but he did want to go to a world of free, fair and open trade. So this administration continuing to make the point that it wants trade to be fair to the United States and to workers here in the United States. Meanwhile as they get set to come back to the United States, Jared Kushner under scrutiny from the fbi as part of this russia probe, investigators, nbc news is reporting believe that kushner has significant information that theyd like to know in their probe. This does not mean however, that they suspect him of a crime or intend to charge him. It is the first indication that weve got than this investigation goes directly into the white house now to a very high level official and Jared Kushner who is at his fatherinlaws side and it also goes into the trump family now given that Jared Kushner is married to ivanka kushner. Challenges ahead when they come back next week. Courtney. Speaking of the president. Lets bring in cnbc contribute ryan. Your relationship isnt personal but you believe that washington need to scrap the trump budge idea and you agree with those who call it cruel. It cuts he could so severely it cuts a variety of programs that effect the people who are most at risk. Those people who are on food stamps or get summitmental insurance. Theyre going to be hurt more than they are helped. Its one of situations ron, where on this side of the camera if your defending something everybody hates its like you want a bad outcome which is mott the case. From my perspective its not cuts its slow down and spending. And medicaid i think everybody agree that no one wants anyone to suffer. The spending has gotten out of the control with the program not only on a per person basis but a patient basis. Do you believe there should be slow down in the growths . Most of this is funding an enormous tax cut. When you look at the way the former healthcare is going to be scrapped and replaced youre getting a trillion dollars medicaid cut in replacement when you look at the budget itself it cuts deeply into thing like food stamps, snaps, supplemental things. My family was on itself my dad those are very important. I think the stories of abuse and overspending particularly, Something Like food stamps which is not a prime thats widely abused. If it is its not abused in a way people describe it on a regular basis. Do you not acknowledge the tax cut to lead to a trickle down impact . Im not a big supply cider. I think it works from time to time under surgeon circumstances. I dont know how much in tax cutting you want to do at this cycle. Particular for those people who are in the top ten percent, most of these cut gain wills accrue to wealthy people. Or how about a Corporate Tax cut . A Corporate Tax cut could result in higher wages in a lowest earning i dont know how you get from here to there. If you got to pass through llc and press corp for c corp. In any ways ron, taxes are complicated. Any tax cut related to income will automatically be a tax cut for the rich because rich people also pay taxes on the first 40,000 of their income. So any politics can get up and say its a tax cut for the rich, every tax cut will automatically be. There were 52 million nontaxable irs returns in 2014 the last year we got full data. After refunds and credits, there was no net liabilities on a federal level. Right. 52 million. Right out of 153 million in the work force. Yes, that happens. The money could be better spent. Theres a trillion dollars in infrastructure if you want to help people who have fallen through the crack for employment perspective, focus on infrastructure, full blown Infrastructure Program i think would be far more beneficial than tax cuts. Do you like that portion of the bill i do. Taking private investments to public activity bonds and get up to a trillion dollar that way. Yeah. Im no of the Public Private part because i dont think thats been as successful as people have suggested. You look at the George Washington bridge which is still run by the state of new jersey and it brings in close to 1 billion per year. I think that would be a model for future Infrastructure Programs. Wheres larry when you need him . I am ill hold him back. Love larry to death were good friends. We disagree on supply side economic. Heres whats coming up on power lunch free money for all. Wheres larry when you need him . Making the case for uniform basic income. Is it a good idea . Vefrts pull the most cash from small cash in a decade. Faceoff friday, a burger battle. All that coming up on power lunch. 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. A used car, now, its time for our generation to define a new social contract. We should have a society that measures progress, not just by economic metrics like gdp but how many of us have a role refind meaningful. We should employee ideas like uniform income to make sure everyone has a cushion to try new ideas. That that was facebooks Ceo Mark Zuckerberg making a speech maybe its time to have a ubi, uniform basic income especially if jobs are going to be lost down the road. Is this a good or terrible idea. Joining us on cnbc news line is ab better we think wenger. Albert im going to start with you. You say this is a good idea, why . Well, at the beginning of the Investor Society we introduced pensions, produced child labors, that made the resolution possible and accelerate the investment possible. We want to get out of the Industrial Age into the knowledge age. Now we want to do thing to make it possible for people to be in that knowledge age as active contributors a contributors uniform and converse sall basic income is the great idea. Is this going to be a real tim land for the economy or is the money now everythings a stimulant for the economy but that its too much of a safety net, sort of defeet the spirit of what country is supposed to be . Your response. Well one of the earliest propoint of idea was thomas payne and he wrote about at a time people were coming to the u. S. And they were becoming free because we were giving them land. And at that time he recognized we were going to run out of land, at that time he talked about establishing a fun oto give them money. This is a idea associated with the idea of freedom, freedom to pursue your purpose and its all in the speech. Jimmy, i think its sounds like welfare. I hate to say it, but in an ideal world it sounds great to be free from the job loop and be inserted into the knowledge loop but i dont really understand what that means in this day and age. I think thomas payne was early i think suk also might be early. I can imagine a society in 2040 or 2050, perhaps when weve had a tremendous wave, progress, robotics, ai, maybe this time will be different when the past advances have caused disruption but eventually for jobs and highest income for most at a Richer Society maybe that will happen at this point. I think were jumping the gun. Lets focus on what we can do right now, whether its ber education, whether its getting people to the job, derightlated or labor market with things like occupational licenses to produce income before we make this lane frog to universetal income, lets focus on the near term things. Jimmy, what about the idea you bringing about zuckerberg bringing this up feel a little guilty because of the jobs he may be steeling because of his company. He may be guilty i dont know, but i think he could be concerned that, the problem is we dont have enough innovation or disruption. Maybe that days around the corner so hes thinking advance. But i think equally relevant, there are a lot of people in the Tech Industry who are worried about a antitech backlash because of automation. Just like weve seen in trade why shouldnt they be . It hasnt happened yet. Mark suker burg can play off most of the states deficit. Why not give 100 users 100 in their account. You get my point, you think that Silicon Valley has an image problem albert where theyre going to have to get in front of this . I think jim is right when he said we dont have enough innovation. I think its right to give a lot of people more innovation to have a job that machines can do. We are having people in job that is machines can do today. Part of the basic income is to get people a walk away option from a bad job, bad city, and that walk away option is going to increase innovation because somebody will no go goand say i can make a minnesota that does this and some of these people will contribute to the exact innovation that jims asking for. We need to think hard being cause and effect. This is not about waiting for machines to get here, this is about creating the condition, just like we created the conditions early on in the Industrial Age. That is the critical aspect here. We have the High School Museum we prepared a lot of people, this is about creating conditions to get the acceleration and innovation that were all looking for. Its a good discussion. Theres a potential quick. Quick jimmy please. Theres a down side, do we want to be sending large checkings of money to places west virginia, kentucky which are depressed right now which has opioids problems is just sending money with no work requirements . We may get entrepreneurials and other things as well. The discussion is not going away we appreciate it. Have a long week, relax. Have a cocktail everybodys fine. Four big analyst on wall street, street talks on deck. Its a burger battle, mcdonalds versus shake shack. Well duke it out. This is a stl and packages. And its also a story about people. People who rely on us every day to deliver their dreams theyre handing us more than mail theyre handing us their business and while we make more ecommerce deliveries to homes than anyone else in the country, we never forget. That your business is our business the United States postal service. Priority you lets take a look at the dow 30 heat map. The dow is up fractionally, i mean like a whisker. Its 50 50 here on the dow. Its a threeday weekend, nobodys trading. Check at oil prices. The closing trades are comp up just ahead, get ready for another business summer travel, long lines, long delays, how much would you pay for peace and privacy. Check out the airports sleeping pods. Coming up next. Hi everybody, im sue herrera, heres your cnbc news update at this hour. Two officials tell nbc news that a chinese Fighter Aircraft intercepted a u. S. Navy plane a couple miles east of hong kong this week. The flyinger flew 200 yards in front of u. S. Plane making quick and erratic turns restricting the plane to maneuver. Vice president pence spoke at tell let me be clear, the era of bulkt cuts of the armed forces of the United States is over. The president s budge increase this funding for National Defense by 54 billion provide more than 56,000 Service Members and begins to rebuild our navy. Before you mow that lawn this week check your mower out. 28,000 cobolt and greenless brands are being recalled because the Circuit Board and short circuit and backfire. There have been 12 incidents. Be safe. A look at the markets ahead of this holiday weekend. The dow joins and sfral average is moving folks. It is down 2 points which 1. 1 of 1 until now. Another record closing high, stafrp l materials are not just leaders of this hour, the goal is hitting the high may 1st, bitcoin hitting another alltime high hitting 2400 bucks. The oil market also closing for today. Lets go to seema. Were getting mote tum as we get a close but what a week for oil. Wee started higher but ending lower. 3 trop in total after the hoe opec announcementss fail to meet expectations. We got the mark for 2018 which is bullish but analysts were hoping for more. Trading at 53. 23. Memorial day quick off for super, averages after the pump 2 per gallon. Memorial day weekend is the biggest day for buying gas with 22 more of a daily purchase. Something to keep in mind in your planning a road trip this weekend. Thank you very much. Seema mody. Get ready for the holiday weekend, price line ex proceed ya trip adviser a check out of this tenyear chart of price line, that stock is up nearly 3,000 in that time frame. Here on set is jaywalker. S no to have you here. Mice to be here on friday. The stocks have seem to have done quite well. They ship the balance of the produce to consumer in the way of the airline. The price for an average tick on an airline hasnt gone up . It has but probably not from the alicleisure travel. Domestically airlines are making record profits, in fact if the last few years more profits theyve ever made. T got to be coming from somewhere melissa and its probably not coming from the ground. Your latest venture, you started up side and that has started at that Business Travel who want to reduce cost. Why does a Business Traveller or Small Business need a separate site as oppose to going to price line or ex proceed ya . They dont have time to search for thousands of different choices, plus theyre not spending their own money, theyre often spending their custom employers money so theyre not motivated to search as hard. But you can show them how to make changes in a few minutes. Thats the idea. Big data, the cloud, mobile computing these thing allow for entirely new concepts just like priceline was a new concepts a few years ago, innovation never stops. And that incentive is enough for Business Traveller wanting to get gift card to safe money. Theyre also getting 24 7 Customer Service thats important for a Business Traveller and theyre getting their time back because theyre not spending an hour with six windows open searching for a flying. On top of it you get your credit card points and frequent flyer miles thats good. What do people care about jay . People care about getting home. Well yeah, if you look at price, we all travel a good am for our jobs and we got producers i wont name them, but theyll stay 30 miles away from where we need to be because they need their marriott point. I was wondering, dude stay closer to we are, thai paying more but they need their points. Whats really changed, the airlines and hotels have figured out how to pull the strpg a bit to get the people to do that. Theres a holy across the street from your Convention Center you dont have to go 15, 20 minutes you just need Data Software to find it. Ifcan i ask you to stick around. Well come back and get your comment. If all the travel troubles have you stressed out maybe all you need is a puppy and a sleeping pod at the airport. Contessa brewer live in dallas. That is all you need, thats all you need. In fact the idea theyre trying to bring down the stress levels for the passengers, you can come in, 42 buys you one hour of time. Come here let me show you, follow me. For 42 you get peace, privacy, a space to stretch out and i dont know, take a nap if you want to. You can do yoga here, you could have mood lighting and couches grading you through security. The thing that had me at hello was max the dog who greeted me as soon as i got off the flight. Max is one of the dozens volunteers therapy dogs, theyre checking pats, hugs and treats and they along with their human volunteers spend twohour shifts greeting people. This started in october, its a huge hit, not just with passengers the flight crews adore the dogs and so do the people who work at this airport. My reaction first thing is do i have their cards. Every one of our dogs have their own personalalized cards and people love to collect their cards. I carry them with me every where i go. That was not a set up, that was the executive price president , not only of Customer Satisfaction but also of revenue. He happens to have the cards of the dogs there, people love it. All these extra and amenities will pay off when people get to chose where theyre going to travel through, that theyll chose dallas instead of denver. And somethings working here because they have just been named the number one large north american airport for Customer Satisfaction, brian. You dont blooer it or . Getting there. I just want to know are they going to have dogs all over because that airplane is 46 miles. Thats my point. Ky get it. With all that stress a lot of people would say give me a nice dog and quiet and i can tune out the rest of the world. Thai on to something there. Are airports finally becoming better, smarter kindler and gentler . No. Theyve got capital constraints, millions of trachllers, weather flight delays, you got to feel for those people. I wouldnt want my daughter running behind a counter in an airport. I feel bad for Contessa Brewer getting home on a friday night from dallas. I dont need the dog im fine. Youll be sleeping in that pod for 4 days. Thanks contessa. Jay its a pleasure thanks for coming. Now upside. Coming up our friday faceoff, mcdonalds versus shake shack. Which stock is for here . On all that next. And the wolf huffed and puffed. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Now its time for our final face off. Mcdonalds versus shake shack. Lets bring in nicole reeder. So any cole were going to have to make you pick because this has a faceoff friday. Which one has more room to run from here . Well, shake is a new i initiation for us as of this week. Were excited about it as one of our top picks. It does have more yew any growth ahead. So when youre thinking about shake shack it certainly has a considerably smaller footprint than mcdonalds. And its also not a valuable proposition, how do you scare the two of those when youre looking at mcdonalds and shake shack for growth Going Forward . Its didnt for both the consumer and the investor. For the consumer looking for every day value and fooshlt where price point matters theyre probably showing up at mcdonalds. Theyre looking in the shake shack door when theyre looking at the proposition in irving dense locations where theyre looking for an overall experience. Likewise for investor, the biggest difference one is small cap and one is large cap. For mcdonalds nichole your price so youre about to hit the wall in terms of your price target, whats going to get you to raise that price target or should we interpret that as people are going to be excited about the technology and menu items thats all priced in . We also take into account the yield and the yield has one of best restaurant space that all would recover. The stock has had a great run, so now what were looking for is whats kicked in in areas outside of the u. S. And its been transplanted into areas like florida by franchise sees and theyre having major success. And were expecting the franchisers to development that around the rest of this country and that should hopefully lend itself to some comp sustain ability in terms of positive momentum. One last thing ill say about that, there is opportunity for multiple expansion as they become more asset like and franchise out more of those companies stores the merchant could extend as well. The fact theres so many competitortype expenses, fat burger, inandout burger, it seems to be burgers every where. Its got to impact shake shack at some point if the consumers dont differentiate between the brands. Sure. The reason there are burger places every where is because its the most consumed food in the u. S. , thats not going to change. Now we have the curlture, the land mass and whos beginning to get there. What we also dont see is because were dealing with the stocks and what we could see in the publics face, some of the private competitors are not doing so well and that i have been in the negative territory for sometime. If you take that into perspective and look at the total landscape, shake shack is pretty well positioned. I want to clarify you said burgers specifically is the most consumed produce in the United States or is it beef . Beef overall. Okay. Because that would have been totally shocking. Six burgers for breakfast. Nicole thank you, Nicole Miller reagan. All right. Investors pulled the most cash from small caps in the decade. A closer look next. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com a used car, time for street talk. The analyst on the stocks you need to know about. First stock, maribel getting its price target lifted. Marvel report in earnings estimates, credits we cease marvel is under value given Strong Revenue growths and improve margins. Im sure once you get whens the new iron man coming out . I know. I always call marvel marvel. Red robin upgrade, favorite burger place. Never been there. After you mentioned it six times. After meeting with the cfo, its a buy from a hold. They admit they miss the move in a stock, but its a multiyear story, and recent store checks, found they were waiting lines on weekday nights, not just weekends, but weekday nights, 90 target, upside, i mention it because its the third, fourth upgrade in two weeks. Huge short squeeze on better than expected earnings. Best buy after the post earnings pop, a big price target increase, up 20 to 71. Strong buy rating, better than expected profitability, accelerating growth, and best buy continues to prune less productive space and return excess cash flow by dividends and buybacks. And smaller cap names, immunomedics, a hot stock, its doubled this year, but cowen not detoured. Doubled from here. Compelling phase two candidate for immu 32 to treat breast kpaer cancer. If approved, a 2019 launch, could be the standard therapy. Small cap name, doubled this year. Got 800 million market cap. Bullish on immu. I think we have to do a road trip to red robin. Theres a lot nearby. Order no tomatoetomatoes. They are delicious. Awful. I hope michelle is listening. She loves tomatoes. Lets do it. Power lunch from a restaurant. Shocking concept. The russ,000 under performing the s p 500 by 6 this year. Talk about what the trading nation team, ii trader, aaron, okay, small caps under performing. We get it. Does it matter for the macro market . You know, overall, it is its what we expect, and its if does matter longer term because we do want to see that growth coming from the u. S. Economy. Thats really going to where its going to help. There are quite a few head winds were facing. One, overvalued because they were runup against the Campaign Promises of lower tax rates that are now waning. Two, its difficult for small caps to grow in periods of fiscal tightening, and they have taken on more debt, more than usual, and, three, weaker dollar makes the revenues look better, better for large cap, not small cap. This could be a under performer for quite some time, but we want that growth from those small caps because thats pushing the u. S. Economy. We do okay, and the domestic, as you noted here, the underperformance is noted, a, do you expect it to turn around, and, b, same question i posed to aaron, does it matter for the bigger cap stocks . Is it a warning sign of sorts . I do think there is a warning sign, the fact its lagged. The market, itself, is overvalued, but the outflow themselves, you must look at the nature of the beast, and ultimately, we saw inflows up 20 in the last two months alone, into the iwm. What weve seen is only a small portion came out, and looking at the last decade, what has the market done . Its essentially gone straight up, so they are moving money into the bigger cap names, and as aaron noted, weaker dollar, so what are the weaker dollar, look for global names, and thats what weve seen. Thats whats caused this, but at the same time, i dont like to see a lagging in this small caps, and i think that could start to signal the market itself is frothy. Are you worried . Frothy . Headed for a correction here, bill, quickly. Well, listen, im not calling for correction. Im not going to pick a top. I see the s p, 24, 28, and its not a breakout mode. Anything that sets this thing off, but at the same time, i think theyre going to be another 35 correction that comes in the month of june. Final question, tomatoes on hamburgers, yes or no . Yes. Of course. Both of you will never be on trading nation again. We discussed it. Thank you very much. Head to the website, tradingnation. Cnbc. Com. Check please, without the tomato, is next. And now, lati welcome back. Check out whats happening with three sector related etfs, spyder industrials, staples, and utility sector etfs, all at new alltime highs in a stable traed today. The xlk, that fund at a high sense september of 2000. Action here despite the fact that markets appear stable now in the closing bell. Back to you. Dont go anywhere, buddy. How do you make a burger . Check please. My burger . Pickles, lettuce . I like yellow american cheese, ketchup, yellow mustard, onions, pickles. Disgusting. On a potato bun. Theres a reason we asked, okay. Its friday, the markets are not doing anything. I pose this on twitter. Its a serious question. Tomatoes, fine, i get it. Why are pickles, like, when did the pickle make its way into a burger . Seriously, the cucumber industry need a bailout . Disgusting. Pull them off. Acidity cuts through the grease. Thats what it is . Its a sponge . It cuts through, like oil and vinegar, its not just oil but to your appointment, you dont eat a steak and put wilted lettuce on it. I was joking. Presumably, steak is a high quality piece of meat and burger is not. Usually. It can be. Okay. Solved the pickle thing. Anyway, okay. Watching alphabet and amazon racing to a thousand, but more stocks doing well in the past month, junk stocks, the dash for trash. Were talking first solar, each up 30 over the past month. Blackberry up 21 over the past month, so what is behind ee eee . One of the con tes tents broke the record on plinko. Unbelievable. It is by far the best game on price as right as everyone knows. He goes nuts, loses his mind. Can you get more excitement . Nothing better than a good game show. Doesnt require skill, does it . Nope. My parents won the newlywed game in 1980, and i was born nine months later. What . 100 fact. Thats not fake news. Closing bell starts right now. Oh, hi, everybody. I cant wait. I cannot wait. Mr. Cocoa cabana joining us later, and im kelly evans at the New York Stock Exchange where guess who rings the closing bell . Barry manilow, hes ringing the bell to commemorate the brand new album called this is my town, hes from across the river there, and people on the Trading Floor have been