Transcripts For CNBC Power Lunch 20170530

Im Brian Sullivan and power lunch begins right now. And welcome to power lunch. S p and nasdaq in danger of posting their first declines in eight sessions. Its not just amazon hitting new highs. Carnival trading at alltime high levels back to its ipo in 1987. Netflix and 3m also at record levels. Im becky quick. We begin with breaking news from the Federal Reserve and steve liesman, we meet again. Reporter brain ard with some very interesting comments saying the rate hike is likely appropriate to happen soon and reduction happening soon as well. It should be on autopilot. Its her comments on the issue of full employment and slowing inflation saying they are at odds. Slowing inflation could prompt her to rethink her view and her forecast for additional rate hikes. She said recent data has been lower than expected and theres little sign of page inflation heating up. Inflation numbers are moving away from her forecast. The trump tax cuts could equal 2 in the first few years but most of the effect is coming from the demand side. The effects would be very small on the supply side but tax cuts on the other hand would be fairly would boost demand at full employment, she says. Brain ard saying considerable uncertainty about policy changes are part of her forecast. Corporate debt is a concern. Ard uncertainty about policy changes are part of her forecast. Corporate debt is a concern. On the broader economy there are signs of synchronized Economic Growth in the u. S. And abroad. The data is consistent with the rebound this quarter. Brian, this idea of the low inflation thumbs weve gotten several months in it a row suggesting to one fed governor maybe the rate hikes should be reconsidered in the future. About 1. 2 trillion in outstanding auto loans. A lot of people are growing increasingly concerned about that. Lael brainard among them. Steve liesman, thank you very much. You might have heard amazon guys, amazon hit 1,000 a share today. I heard this. Finally. This kind of attention could put even more pressure on hedge funds to get back into it tech stocks. Is this trade already dangerously overcrowded . A new report from bank of America Merrill lynch says 71 are now overweight. Melissa, is that right . Most are overweight technology. The highest on record going back to 2008. Of that overweight 71 are in those stocks. Not all active managers. Not 71 of all Fund Managers. The overweight in technology. Basically a lot of people in a really small elevator. Exactly right. Thats what you need to know. This is why they pay me tens of dollars. The state street Global Advisers and senior portfolio. Michael, ill ask you first, are you one of these guys in a very small elevator . Are you heavily buying into any of those tech names . This elevator is going to the upward part of the floor so thats a good start. All elevators have weight limits. Folks are equating the stocks to technology more broadly and the problem is the return, the median return for the it Technology Sector is about 19 and about 74 have outperformed this year. The it technology rally is more than just the faang stocks. Rich, what about you . Were a little more nervous or concerned. Were fans of largecap stocks, fans of growth stocks. Not necessarily tech stocks. One has to be considered when literally a handful of stocks, nearly a quarter of the markets gains this year. So were concerned about valuations and where this is going. Wed rather see moneys deployed elsewhere at this point. Were not jumping on the tech or faang bandwagon. Youre feeling comfortable in the elevator, youre sure its going to go to the upper floors. Whats going to drive the next leg higher if we already have 71 of the overweight Fund Managers, 71 of that is driven by the faang stocks and are overweight in faang. Who is the buyer at this point . I think the incremental buyers are the folks who are looking for growth in a market. Interest rates remain low and we have little inflation. As a result investors need growth. They need income. They need growth. Where are they going to find growth . Theyre going to find it in Technology Earnings and i think thats the incremental buyer are those folks from that standpoint. One of the strategists said there are weird trades taking place, people Like Technology but also utility stocks and thats a reflection of the bond market and low yields youre getting. Does that trade make sense to you . It does. Its a bar bell strategy so basically youre putting a foot in the hot water. I think its not a bad strategy. Gdp forecast at this point to go down, to decelerate or are being lowered. If you want a safe haven play, they are the way to counterbalance the tech bet. If you do that cross section, thats technology. What else is there in your view . Were overweighted now one place and thats international. Were neutral on u. S. Stocks in general. If we had to be in u. S. Stocks, we like large growth companies. We much prefer to deploy new dollars overseas in primarily the european developed markets right now. They have lower rates but a lot more upside. The valuations are far more compelling than domestically. And you have Interest Rates going down not up. The only trade ive heard is international plays. Is this a situation you need to be sticking to conventional wisdom, with names Like Technology, things like utiliti utilities, International Stocks or is there a counter intuitive play at work here . In the u. S. We still are overweight. We Like Technology for the Earnings Growth. We like industrials as a play on the Global Growth trade, and we like financials for the potential deregulation aspect as well as if we get higher Interest Rates the profitability from a financials perspective should fall to the bottom line within the u. S. We are overweight both europe and japan for some of the reasons he cited, valuations are better there. We are starting to see Earnings Growth and growth more broadly pick up and you have the tail winds of easy monetary policy. The euro has been creeping up and we should keep an eye on that as a potential headwind if it continues to rise. Michael and rich, thank you both, gentlemen. We havent had one for a while but sean spicer returning to the podium soon for a white house briefing. This comes amid the president s first overseas trip and a shakeup in the president s Communication Team at the white house. Eamon javers is at the white house. Reporter a lot of news going on to bring you up to speed on. The department of Homeland Security put out a statement saying they are not expecting to make any announcements in terms of expanding that laptop ban on laptops in airplane cabins on international travel. As of right now that ban applies to ten countries so for right now that could be expanded to a longer list of countries, at least not for this week. Meanwhile here at the white house nbc news is reporting a new, someone close to President Trump now apparently involved in a request for documents that nbc news is reporting the senate and house intelligence committees are seeking information from Donald Trumps lawyer michael cohen. Paul manafort, Michael Flynn and others. The committee is seeking information about russian contacts, any communications with the Trump Campaign and russia. All that have going on as we learn mick ail dubke here at the white house submitted his resignation on may 18th. Its coming out because he told the president he would stay in place. The president is now back so that announcement has been made. Reince priebus says he will assist and be a strong advocate for the president and policies moving forward. Now were seeing the president communicating for himself. One he says shrussian officials must be laughing at the u. S. And how a lame excuse for why the dems lost the election has taken over the fake news. The coverage of russia and talking about germany as well sort of expand iing his conflic with Angela Merkel the leader of germany. A lot going on at the white house. We have that briefing coming up at the top of 2 00. A comment and a question for you. I wonder why the president puts this out on twitter but not facebook. Twitter is younger and more liberal. Its like hes trolling because he doesnt put it on his facebook page. In the meetings, the conversations ive had with people in and around the white house theyve expressed concern. It has become difficult to high levels of the trump administration. Reporter the nominee withdrew his name at the Treasury Department. That was an indication that they had some trouble filling that very highprofile slot. Well wait and see mike dubkes position and how they rearrange the press office and if they can attract strong off the bench. That could be a challenge. There are a lot of empty offices here in the executive Office Building where im standing and inside the white house here to my left where they have not been able to take people in. They might be the right hire, having trouble selecting the right person. That is a concern. Eamon, thank you. Amazon breaking through the 1,000 share mark today now up more than 33 this year. Can it still climb higher from here . I want to get to the amazon business reasons were having a conversation with these two other Fund Managers and were discussing who the incremental buyer is. For amazon do you get a accepts of who that buyer is . Anybody whose benchmark to growth, to the s p 500, a tech fund manager own amazon already. Its a good problem to have in some ways. I think when we look at opportunities its really outside of core tech and investors, media investors, other categories outside of tech looking for more significant growth. It seems amazon is a tough setup. They really have to deliver on operating margins because theyre going to come up on easy comparisons and that might be perceived poorly. There is a necessity i would say to have Margin Expansion as a result of the easy comparison from next year and they dont have to guide to that in q3 but have to be there with Market Expansion because of the easy compares with all the spending they did on fulfillment last year. We do think its a nearterm risk. That was a little bit of a disappointment in the previous quarter that growth slowed down because of price cuts. Are you expecting that in the second half of the year . Still growing 40 . We dont expect a react sell racial of growth but do think that kind of level can be sustained for quite a long time and its just another layer in the overall total market that amazon is going towards which includes everything from core retail to furniture and grocery and then cloud with aws and then content as well. Theres a the lot of different layers for the business. Michael olson with the 1,050 on the stock. The airline is working to restore its image. We have the latest just ahead. Speaking out for the first time Insider Trading charges with the s. E. C. , leon cooperman spoke with scott wopner. Scott will join us live next. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. Leon cooperman speaking out for the First Time Since settling Insider Trading charges with the s. E. C. He spoke exclusively with our scott wopner on halftime a few minutes ago. Scott joins us now with the headlines. Scott, there were many. Becky, thank you so much. Lee cooperman was defiant from the start on his Insider Trading case, steadfast that he would never give the s. E. C. A dime. Well, he changed his mind. Agreed to a settlement and here is why. Its very simple. My probability of winning would be overwhelmingly high and if i didnt win it had nothing to do with the merits of the case, im a hedge fund manager, im healthy. And that the cost of trial would be probably 15 million to 20 million and go on for a couple years. If we did win we would likely see appeals. Ive entered into a no admit, no deny settlement which prohibits me from commenting on the governments allegations or the strength of my defenses. I believe the outcome speaks for itself and ill leave it at that. Well, of course with mr. Cooperman we talked about the stock market which he has said is tearily valued. He commented again today and said where stocks go from here depends on the president and his agenda. A big swing in earnings. Does President Trump get it through or not. Repatriation of 2 trillion of earnings, a Corporate Tax rate between the high teens and low 20s. Thats 10. The s p earns 142. If i put the multiple its like 2 24. 30. So were not going to get a tax package. He went on to say the conditions that would lead to a big decline do not exist though he did say if stocks go up another 5 from here that would represent the euphoria that would lead him to believe it was in the latter stages if not over. It seemed the big thing there wasnt a fiveyear ban hanging over his head. That had to be a huge issue. For a guy mr. Coopermans aiming would be a death sentence. A career. He lost 4 billion in assets that were pulled from institutions and his longtime individual clients stayed with him. Its taken a toll on the firm and the fund. And he wants to make it back. And some of them are acting under a fiduciary responsibility. You get a wells notice you have no choice but to pull the money. I think he wants to prove to people he can come back from this and that he can continue to get some assets. What have returns been of late . Weve heard those who have difficulty. Im going to get the numbers wrong. He has had good returns this year and last year. Hes doing quite well, the issue with having the money. Mark cuban calling it the butt kickers. Should have read it that way. Its the other word for butt common for a donkey. Mark had his own dustup of the s. E. C. And was supportive of lee in his fight and reached out early on. Its good to hear from him. Thank you. That massive i. T. Meltdown that left 75,000 passengers stranded at heathrow and gatwick still causing headaches. The sleep deprived pr team. The latest on that mess coming up. Its what busch is known for. What are you known for . Im indecisive. Scratch that. No, thats right. Although. [sfx buschhhhh] the failure and the airline is feeling the pain today. Phil lebeau, do they know what caused the outage . Reporter theyre say iing is because of a power surge and once that happened it caused them to scrap all of their flights and thats why you had scenes like this. Hundreds of flights were canceled but a few yesterday as well. Its estimated 75,000 were impacted. Here are some of them talking about their frustration. Were flying with virgin today. Some kind of disruption but it wasnt until we were here. Reporter shares of aig, the owner of British Airwaves took a big hit immediately after this happened. They have come back a little bit but, guys, it seems were seeing this maybe once every two or three months that a Major Airline has some type of an outage and has people saying other industries upgrade their i. T. Systems. Why does the Airline Industry when it happens it basically leaves a lot of people stranded. Any word on teresa may has said she hopes they will have some sort of Compensation Scheme for all the stranded passengers. Reporter its required in the eu if you are on one of these flights and you had to book another flight on a Different Airline you will be compensated in some fashion. Nobody has totalled it up but in the tens of millions of dollars. Phil, thank you. Phil lebeau. Twitter tirades and white house shakeups, will it derail the president s agenda including tax reform . Well get to that straight ahead. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. Medicare doesnt cover everything. And like all standardized Medicare Supplement Insurance Plans, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. Hello, everybody, im sue herera. Here is your cnbc news update. Centers for medicare and Medicaid Services is readying a Fraud Prevention initiative that removes Social Security numbers from medicare cards to help combat identity theft. Theyll begin mailing those cards in 2018. A chicago judge ruling the name of the man who was suing former House Speaker Dennis Hastert for Sexual Assault will remain sealed. The man alleges hastert assaulted him in a bathroom stall in yorkville, illinois, in the 1970s. A strong earthquake in indonesia damaged homes and buildings, injuring three. The quake was centered in a thinly populated area. And Ariana Grande had will hold a benefit concert sunday. Justin beaver, cold play, miley cyrus and katy perry are among the stars who will join grande. Thats the news update this hour. Back to you, melissa. A check on the markets right now. Trading a very narrow range after the long holiday weekend. Telecom the best performing sector. We are standing by for sean spicer and the first press Briefing Since the president s return. Trump returning to the world of twitter sending out several things the past 24 hours. The u. S. Senate should switch to 51 votes immediately meaning the Nuclear Option and get health care and tax cuts approved fast and easy. Dems would do it no doubt. That coming as the wall street writes the tax code has been faltering. Tax reform has been near and dear to your heart. The lead story says its faltering this morning. Is that the case . One thing i like to see is the president go out and rally his troops on a number of things particularly tax cuts. Thats one of the key factors. Perhaps border security. He needs to be out on the stump. He really does. I think that would go a long way. Now specifically on the tax process they have to finish so theyre going to do that. What im told is they are working on a deal. Theyre not going to get it done. They will get health care done. Can they get it in the Fourth Quarter . I dont know. If they dont and the economy doesnt pick up theyre going to get their brains beaten in. Thats all. I think they know that, dont they . Probably. I think thats been a message sent back through. Tax reform we havent seen since 1986. What do you think is happening to the agenda . Well, richard has a point in that were not talking about tax reform anymore, that tweet you showed me your reporter ylan mui showed me tax cuts not the tax reform in that tweet and he has them in capital letters. I think thats a lot more realistic because i dont think theres going to be anything like the reform that maybe cuts revenues by 5 trillion over ten years. Its going to have to meet the budget rules. Whats remarkable about this, on health care not only is it sucking up oxygen but frankly i dont think republicans think that much on health care besides repeal. Thats not their brand but tax cutting is and the fact that theyve been so dysfunctional on moving this thing arguing about the border tax adjustment for nine months which nobody a lot of people never liked in the first place. I apologize to richard reuben. Good for you. Bad for me. As i said im not near as pessimist as jerrod is. I think trump is right. Get rid of the filibuster. Just get rid of it. Mostly did harm not good. We all know what were talking about. Never in the constitution. The democrats used the Nuclear Option. Mitch mcdonnell made me cry. That can come back to bite you in the rump larry. If something happens let the people speak. Youre right. If republicans cant get the job done then theyre going to be tossed out of office. Im not so sure, look, jerrod, i its a mixed bag. I wouldnt conclude yet there will be no socalled reforms or ending loopholes in the tax story. Some of them are still alive and so, therefore, i wouldnt put that down. S as you know theres a growth impact. I think you can get 3 growth. Its in mulvaneys budget. I know we disagree but i still think it will add 3 trillion or 4 trillion in revenues. You say im pessimistic about this. Frankly i dont think we need a big tax cut at all. Im not really pessimistic about its failure but in terms of the growth effects, larry, you and i have within having a robust argument. Were like an old, married couple. Weve been having robust arguments for 25 years. And i think we still love each other. That should be noted. Its not ive never been able to convince you based on solid and empirical evidence that youre wrong but what matters is not what you think at this point its cbo and the jct, the folks who will score this and theyre not going to score a 3 growth rate. Theyre going to score a 2 or a sub 2. Youre probably going to have temporary. Permanent is better but something is better than nothing. A couple of things. These are very important. My friend jerrod, i mean, im going to leave the 3 thing alone because were not going to solve that probably in both our lives. Let me say this. Cbo and joint Tax Committee makes their estimates. Theres a very large movement, not from the leadership but theres a large movement from the house and the senate not to it use those estimates. The Treasury Department is running their own models. Steve mnuchin has told us. Thats kind of a dangerous path. The scorekeepers are the scorekeepers. Theres no law it was never written into the budget reform act. Its 51 votes, though. You do what you have to do, the most important person in the senate when they come to putting these provisions in is mike pence. Hes the president of the senate. He can disagree with anybody and i think youll see a battle on this. It makes more sense for me to get rid of the filibuster than who the arbiters of score keeping are. Yes. Everybody in play in charge will put their own score down. Neither of those are going to happen. One last point, jerrod, i know we disagree. One last point. This tenyear window stuff, this is made up stuff that began as a oneyear window. Then it went to two, three, five and ten. You can put a 20year window in. You could. You could put a 30year window in. And i hope the republicans really experiment with that and talk about it in a debate. I dont want the hands cuffed or tied. We need to get American Business booming again. Speaking of windows and years, im not going to adopt the trump strategy of blaming the media for everything, but i will say this, jerrod. The media as it is today in this amazon prime right now, right now world, and im putting myself right in there, buddy. Im not saying other people are to blame. Its sort of, well, we havent gotten tax reform done yet. Its stalled. Its over. I saw an article about deepening rift with germany. Do we have a rift . How is it deepening . The point im trying to say in the 80s were you involved in reagans tax plan. It took three years to get done. Do we have this unfair sense of urgency just because we have a gop in the senate, the house and the white house ostensibly that everything will just flow through. Thats not the way its done. Its a great point and youre right. It took years to achieve the 86 reforms, but dont blame the media when donald trump is tweeting out tax reform is on track, were ahead of schedule. Or at least include him when you blame the media. Im not blaming. Im simply say iing that the rit now world is sort of here is the point. D. C. Is slow. Here is the point. Those three years were years in which legislators and their teams and staffers, i mean, i remember it personally were hard at work trying to build the architecture for tax reform. Nobodys done that. Larry and his pals have been working on this for a long time. But im telling you, up on capitol hill there simply hasnt been the leg work. I understand. I have an idea how to do this. I just had an idea. Youve all heard it before so i wont repeat it. Sully, can i amend one thing . The 1981 tax cut which took the top grade from 70 to 50 was done in year one. Reagan signed it. How long . Were six months in. No, no, no. Im trying to given the administration a break. That kind of fruit is not hanging, larry. We dont have such low hanging fruit. Let me finish my point. That was the first one and it did happen fast. Now the second one, which was the big reform going from income going from 50 to 28 that did it take a couple years. And here is one of my regrets about the discussion today, back in 86, i was involved in this, we had democrats leading the charge along with jack. We had richard gephardt. Oneill. No, he was not. We had gephardt and we had bill bradley and a number of wellknown democrats. They were terrific. It worked. We lost them when they started running for president. Thats what always happen to democrats. But they were great in the runup. Ill tell you this, jerrod, you remember this, up until a week or ten days before nobody really thought we were going to get it. Rostenkowski pledged allegiance to it. The thing that those guys were doing, they were all guys back then, that those guys were doing was the kind of behind the scenes leg work that rich reuben was talking about in the journal article. Remember when you do tax reform that ends up closing some loopholes so that you dont explode the deficit and debt, somebody is going to lose. And you have to make sure that the folks who are going to get dinged by this are onboard. Thats the mistake with the border adjustment tax. You came out with this idea and you didnt have the retailers onboard and thats not what theyve done. Thats why were stuck. That was a terrible idea. Im doing leg work, jerrod. Im exhausted. Im running, playing tennis hard. Im doing all the leg work. I wish you were on my team. You know what, we could get a Corporate Tax cut. I believe you could. I dont want a tax cut. Im not going to join your team. Gentlemen, thank you both. I would like to see the corporate rate come down, no question. There you go. He just said it. There is agreement. There it is. Thats all a man can ask for. Yeah. Thank you, guys. Thank you. Thanks, jerrod. Its not a river, larry. Logs move slowly in the swamp. Tiger woods has reclaimed the top spot on the front page of newspapers, that is. The details surrounding his arrest, the big question if a comeback is ever possible for tiger. That story first. Rick san it telly at the cme for todays bond report. Rick . Reporter ill tell you what, theres not a big range but were pretty much exploring the low end of it. We hover right below 2, 2. 5. This could be the lowest yield close going all the way back to the third week in april. Dollar index also small range hovering at the bottom. The big story today, tens minus two. Low 90s. Havent been there since october. You see on the big chart, what does it mean . At least for today tenyear note rates and 2s arent. Power lunch will return and youll see interesting weekend pictures of tiger. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. 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. Thereit comes to technology, about my Small Business so when i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. 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. Welcome back to power lunch. New developments in tiger woods dui arrest. A Police Report shows the golfing legend was apparently asleep at the wheel when Florida Police akouencountered him. He had no alcohol in his system but police say his speech was slurred. Woods said in his Statement Last night that, quote, i want the public to know that alcohol was not involved. What happened was an unexpected reaction to prescribed medications. Woods went on to say i didnt realize the mix of medications had affected me so strongly. Yesterdays arrest is another sad reminder how far tiger woods has fall ep since winning his last major championship almost nine years ago. The question now is why is madison avenue Still Standing by him and so many sports fans hoping upon hope that he can make a comeback. Carter murray is the ceo of a Global Advertising firm. The director of the Sports Business Program at Washington University in st. Louis. Patrick, what does tiger woods stand for these days . Well, thats a great question, making mistake after mistake. Obviously in 2009 when he was making 92 million in endorsements and then, of course, the fiasco that took place there with his home life he was still making 45 million. And now we have this triple bogey of a mistake, if you will, with the dui charge. I would be shocked if some of these current sponsors dont drop him within the next week or two. What do you think why do you think sponsors are sticking by him and, granted, lets say they do start to drop him in the coming week or weeks to come. What is it about tiger woods that makes him still even an attractive spokesperson . I think when you think about the big brands sponsoring him, a lot of them sponsor him because hes a winner and is no longer winning and they sponsor him because hes an icon. The challenge he has right now hes not winning and hes not an icon. Hes not giving himself enough space to be an icon. Should you fire him, which is what people are asking, i think the real question is, should he retire . I think that would open up very much his brand to being focused on an iconic brand and i think it would allow him to add value for clients brands. If he retires he doesnt need to be a champion but hes not an icon because it doesnt fix the other problems in his life, does it . His truth is as a brand is that he won, i think, the second most number of majors in history. And the youngest. Exactly. And he redefined the sport. I think now in the short people looked at him as being sort of the statesman of golf. Yes, but hes had some troubles in the past as we know but i think that truth is still there and i think with time were he to retire he would focus on the good and not on the recent difficulties. Patrick, he has not won a major since that thanksgiving night where his marital issues came to light. First off, i think we have to address the person. I dont know and im not going to speculate that based on the four drugs listed under the medications, hes got the some issues. One of those drugs is not even legal in the United States, an antiinflammatory that merck did not get approval for here in the United States. Obviously its quite a cocktail if theyre all taken together so i hope if he needs help he gets that help. What do you think tiger woods needsstates. What do you think tiger woods need to do now patrick . Well, obviously theres got to be tremendous recommendation of his image and sports psychologist. Im sure hes reached out to someone of that elk before but we can only put ourselves in that place. If i was revered as one of the greatest athletes at all times, which he was at one point, if i was making the kind of money i was making, to see it decline as it has, hes likely to lose another 15 million from endorsement thats depressing. He needs to reach out and seek help to get him over these thing. Certainly on top of that is a prk r surgery is required as well. Pr surgery thats an interesting term. In terms of the standpoint of the sponsors can they get a deal at this point then . I think from a brand perspective i dont think theyre looking for tigers woods as a deal, theyre looking for to be associated with that again success and icon status. Whats going on whats now is harming that. I think thats why the tough discussions are going to be happening. But he is, i think with time, if reretired people would look back at what he achieved in his career and how he changed the industry, not of the struggle hes going through right now. To see what hes going through right now you cant look at that picture of him and its not even the golf, its based on the drugs he was taking. Vie yaks, for ritz is not even accepted in the United States. Hes got issues and some work to do. Asleep in your car, not knowing where you are, you thought you were returning from california, he needs to go out for tiger woods the person first does it not . Is my point. Yeah, i think itll be hard to argue with that when you see what happened in the last day or two. From branding and market perspective if he was thinking about looking forward and retiring he would focus on himself and the incredible thing he achieved. You can see the value for brands moving forward. Look at Michael Jordan and the career hes had with branding and marketing since his retirement. Guys thank you, carter and patrick we appreciate it. The four big wall street calls you need to hear about today, it could be a headache free investment. Street talk coming up. Orking . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at td ameritrade. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance time for street talk. Our first stock imbrel am brel las property is to bring things, alhambra is heading to a period of higher investment. Moment y premiums. Were doing two stocks today, calling the moving along. Second and final stock of the today is bio haven factors suit call. 17 a share, its at 24 and change right now. The further along is the treatment for migraine headaches. Millions of americans suffer migraines and begins coverage with a buy and 30 target. Only four analyst covered the stock but only price target on bhbn is only 31. Becky over to you. He didnt get to meet the pope but he does get to address white house press. Sean spicer returns to the podium after returning with the president from his first foreign trip. Lye when it begins. This is im becky quick, heres whats on the menu for second hour of power lunch. Amazon with 7 a share. Home priceses are rising. There arent enough homes for sale and its happening all across the country. Silicon valley its so bad teachers cannot afford to live. Plus the summers a big time for hollywood and it did not get off to a great start this weekend. Power lunch second hour. Power lunch two, the revisiting. Lets check in on the sequels are never as good as the first one. The trend continues, big tech stocks like amazon, facebook, google all higher. Were going to add amazon to ph. At wood ocean share climbing. We did this call on at wood and he upgraded it last week and it gets bought. Rough day for energy, worse sector in the s p 500 as oil falls. In the meantime, why is press sector sean spicer set to brief the media shortly. Well bring that to you as soon as that begins. Home prices rising once again in march reaching a rerkd high. Diana joining us with more. Its your basic supply and demand equation, too little supply and too much demand means home price gains continue to fly. Home prices up 5 in march year over year thats a wider began than february. Top ten markets up 2. 2 and 5. 2. That was i know changed from february. The heat in housing is getting more local. Ten cities had higher price gain in march than in february, seattle, portland and dallas has the biggest jumps. Seattle has the most homes for sales and denver is not far behind. Demand is continuing to growth. And were likely seeing more demand from buyers who went through the foreclosure crises. Average Credit Scores at the highest since 2005. If you go through a foreclosure it takes up to seven years for that to come after your Credit Profile and were seven years past the pique of the crises. Brian. A new report showing that meeting and sales prices were up 2 nationwide since the beginning of the year. Lets bring in bruce, hes the senior adviser. Its great, we like to see houses go up in some areas but are these gains sustainable . Is this market getting too hot for its own good . Thats a great question. And for black night, sustainable is about how affordable are these homes. Sure prices are high but affordability are a crises of income, exam and rates. And income is affecting these prices, if you compare affordability today it compares favorably to t favorably to the 2006 era. Even in seattle. Not everybodys Mark Zuckerberg most people are teachers and fireman and theyre trying to pay 1 million for a one bedroom. Thats a great point. Our statistics are looking at nationally, the himarkets where you guy extremely high depreciation where its crowding out firefighters and teachers. Affordability is a greater challenge. Meeting affordability is okay but looking at all sector of society there are going to be some more than challenging than others. Give us an idea why los angeles we talk about amazon every day so we know seattle, Silicon Valley, facebook and google, l. A. A little bit surprising, cant be related to snap. And talk to us about some of the markets that are cooling off. Im curious as to why the tide appears to be rolling out on tus ka loo sa, alabama market . So going back to affordability being driven by employment and incomes, the l. A. Region has a very diverse and robust economy and that employment and Income Growth has driven it. You also have a lot of investor activity in the l. A. Market. Housing has become a pretty hot asset class and rents are improving, rents are very healthy and people are looking at it maybe a hedge for equity and other markets that might be reaching their pique, thats a factor that plays into this as well. Looking at the downturn cases like tuck louisa it comes to employment and income. Rates are favorable on a longterm historic basis so that shouldnt be a factor, with you see a downturn or Something Like that thats local in economy and housing mark. When it comes to Housing Investment you mentioned thats a hot area right now particularly in l. A. Are they more sensitive to a rise in rates . Theyre definitely sensitive to a rise in rates. We ran a few scenarios to look at how long we think this almost 6 National House priced rate could be sustained and would you like me to share that with your viewers . Ben, were going to leave it there. Keep bringing us this information on housing if you can. Because theres one thing, maybe like the stock market that everybody seems to have an interest in nationwide. We get more clues today as what to the what the feds might do at their gym meeting. Steve liesman is with us. Dallas president robert clapper itll, cnbc in an interview this morning this cause for two hikes and reducing the Balance Sheet this year. We can do two rate hikes and begin the process for reducing Balance Sheet and the individual tactics meeting by meeting are less important in the overall plan. He said he sees a lower rebound this quarter but is concerned about inflation data. Inflation fell to 1. 5 . Thats the third month in the row it failed to rise. And its got the attention of federal govern who just spoke over the last half hour. The latest data on inflation has been lower than expected. If anything the puzzle today is why inflation appears to be slowing at a time when most focusers must the she could rethink her forecast for future rate heights. I know that capelin is a voter member is she too . Yeah. So if youre measuring the hawks and the doves as you get into the voter situation where does i come down . So braider who is an original dove sound a bit hawk ish but all of a sudden with the past several months of this week inflation data it seems like all bets are off and im not sure who is what particular speak seizure species at this moment. The probably chart i think that looks pretty good. The question is the next great hike. If we continue to bedown below the 2 charges i think people are going to will the debt how did owe know that. I was just imagining. That was something hes watching she wants to see what we have seen in the past that this debt ceiling fights could affect markets and the economy. And capelin also mentioned the stock market . He didnt see bubble ls he said it could be healthy. Thank you steve. You need a fed owl to sit there and watch for a while. Somebodys whos head can turn over 380 degrees. How many licks to get to the center of the if youre wondering what Brian Sullivan is thinking now we know. How many licks does i take to get to the center of ray paul, one, two, three. That we know. Stocks lower today. Is a june swoon coming lets bring in mark, and oliver porsche. Guys golf to ha guys good to have you with us. Oliver where had you put your money right now . It seams like the sectors thats in value since they started keeping records in 2008. Weve got Consumer Staples up 9 here today, where do you go . We like some of the Consumer Discretionary names so we look at the Housing Market and i think some of the points made in the previous segment are right on. Housing is hot but so is Home Improvement and so Companies Like home depp i think have a great way to go. Its a stock pickers market. In the Consumer Discretionary base we see potential. And dont forget to look at Companies Like bce. You mentioned telecoms oliver, mark, whats interesting in the market is that theres such a reach for growth right now. Theres a reach for technology but then theres also a reach for yield. So were seeing this as one guess put it, a barbell approach. You want the growth and also theout play. Is there still values to that strategy right now, particularly the david end paying side of that barbell . Absolutely. But you have to be very careful. Im sorry guys we got to go sean spicer speaking right now at the warehouse. Lets listen. An opportunity to pay your respects to the brave men and women who had given their lives for our freedom yesterday on memorial day. I want to begin by capturing an historic trip of the president and first lady. In just nine days the president traveled across europe and the middle east and interacted with nearly 100 foreign leaders. It was an unprecedented first trip abroad. Four months into this administration and it shows how quickly and decisively the president is acting to strength alliances, to form new partnerships and rebuild america standing in the world. We never seen before at this point a presidency such sweeping reassurance of an american designed to bring back the world from growing dangers and perpetual disasters brought on by years of fail leadership. President trump started in saudi arabia beginning his first trip as president in the nation, a custodian to the who holy sights in the islamic faith. The president was greeted by the kingdom of saudi arabia and was sieved with graciousness. The president s address to the leaders of more than 50 air bike muslim nations was an historic turning point that people will be talking about for years to come. He did what was promised in his inaugural address, united the civilized world in the fight against terrorism and extremism. The president was direct to call on the region to drive out the terrorist and extremist from its midst. He let American Allies know what to expect from us going forward, what we called quote, a freely and voluntarily principle realism in common value. He led out the details for why the muslim world must take the lead in combatting radicalization. He concluded by saying if those neighbors go forward, quote, union and takes what it needs to be destroy and terror threatens our world then theres no lim to the future our great citizens will have. The president s speech was met with universal praise. Jim called it quote a kourjs speak. We have to look back decades to quote, find a comparatively dramatic moment in history of u. S. Former policy. And former democratic jean harmon says she quote, love the idea hes going to the found of all three major religiouses. President of egypt says that President Trump is quote, a unique personality that is capable of doing this impossible. The Saudi Foreign minister says quote, this is the beginning of a turning point in the relationship between the u. S. And the air rib and islamic world. Several kings gave extraordinary speeches at the summit jrnd scoring how much President Trump has done to rally the world against terrorism. We cannot overlook the leaders of more than that was an historic event this in that alone. King solomon says he shares with the president to kenya of jordan agreed that quote, the grave challenges of terrorism and extremism demands coordination and Global Action at every level. He stated that quote we are accountable for our commitment to fight rad claization in all of its forms. The deal for the United States totaling well over a trillion dollars in tens of thousands of more than jobs. This included the 110 billion in investment which will grow to 250 billion over the next ten years from the cooperation in saudi arabia that will enable muslim troops to take on the goal of fighting terrorism. Also terror funding in the golf, opening of a center for combatting extremist ideaologist and company deals that include raytheon, boeing, ge, sysco among others that will result in an additional 270 billion of saudi investment in American Businesses and american jobs. The president then went to israeli where he was received with incredible warmth. He strength americas unbreakable bond with israel. Made the first visit to the western wall and gave a highly praised address at the muslim museum. The moving address spoke of a future in which quote, children around the world are to live without fear, dream without limits and process expert without violence. He said i asked this land to join me in fighting our common enemies to, to pursue our value and protect the dignity of every child of god. The president also visited to memorialized the victims of holocaust and to pledge never again. The president both with president netanyahu to apply for a renewed push for peace which they both agreed theyd work towards. He also discussed with both leadsers how to increase against terrorist. President netanyahu says quote, for the first time in my live a see a real need for change. In a short space of three days trump carried out a semiresolution. From his real the president traveled to rome where he met with the pope. They had a great conversation about isis. The president and first lady were honored by the visit. The president attended the nato summit in brussels where he stood up for american tax payers and common offense by calling on other nato countries to pay their fair share. Hard working americans saw a leader representative and their security on the international stage. The president also urged nato to adapt the alliance to effectively combat terrorism. Lair in the meet it was unanimously agreed on those two pretrial diversion status and the secretary general was extremely genius on the president s finally the president traveled to the g7 summit in sicily where he and other leaders voted to promote prosperity and security for each of their countries. The meetings were marked by outstanding success. They include a strong statement, the g7 nation will stand against unfair trade practices and commitment to fostering a true level Playing Field. The g7 endorsed the policy outlined by President Trump to seek resettlement of refugees as close as possible to their own country so they can be part of an eventually rebuilding. This was a the g7 formally also condemned the use of chemical weapons and needless to say the president s leadership was critical in setting those pretrial diversion stat priorities for the nation. The president also met with president abe in japan. The president concluded his trip with an address to the Service Member and their families to thank them for their service on memorial day weekend and to deliver a strong message about the unity and fight against terrorism. Yesterday, President Trump smoke at Arlington Cemetery for Memorial Day Services and visited it had grave sights of our fallen heroes. This was an extraordinary nine day trip the president took. He rallied civilized nations of the world against terrorism. Took really steps on peace in the east and renewed our alliances on shared interests and burdens. The trip set the stage for a much more state and Peaceful World for all. Were back at home and the president s cabinet moving full steam ahead on the president agenda. His plan for the tax reform continues to progress led by secretary mnuchin and director comb. Secretary mnuchin meat separately with the house wage community, the republican study committee. The Vice President also discussed reform with mumble leaders. Well begin Holding Industry listening sessions next week providing Business Opportunities for leaders to give their in puts on what reform that are necessary to allow uses to grow jobs and economy. This morning the president met with administrative pruitt what they discussed was the president s upcoming decision on the paris climate. This is something the president is spending a great deal of time on. Ultimately he wants a fair deal for the American People and he will have an announcement coming on that shortly. Also, today the president s representative lighthouser is having a meeting with several ministers ahead of tomorrows visit between the president and the Prime Minister. U. S. Trade representative will have rate outside on those meetings this afternoon. Lighthousers will be speaking at the white house for the vote that mesothelioma Prime Minister that speech should be available by the u. S. Facebook page. While underscoring the work ahead and addressing the challenges presented by the recent sharp increase by the trade deficit with vietnam. Trade deficits are unfair trade practices have hit american workers, through a robust and trade agenda this administration is strengthening our important relationships with partners like vietnam by leveling the Playing Field with American Businesses throughout the world. With that ill take your questions. Phil. To the issue of the russia pro im wondering sean if you can tell us if the president or when the the president knew Jared Kushner was seeking to have back channel to the russian government. And if he didnt know at the time when did he find out . I think that would assume a lot and i should way mr. Kushners attorney said mr. Kushner will voluntarily share what he know. Did the president discuss it though . Im not going to get into what the president did or did not discuss. What your questions assumes are facts not substantiated by anoms sources being leaked out. Has he approved of an action in. Youre asking if he approved offend appear action thats not a confirmed action. That being says i think secretary kelly discussed it in general terms. So does the white house dispute that that happened . Item not going to get into it but your question presupposes facts not confirmed. The president retweeted this morning an article about that back channel that was based on an anonymous source that said there was an effort to set up a back challenge, that it was the russians who suggested that and that it was a talk about syria. Was the president not confirming that there was an effort in the facts that i just said . I think what i said speaks for itself. But you said first of all, the article was based on Anonymous Sources. Which it is. But the fox article that the president retweeted was also based on anoun mouse sources why are the sources more credible than the one in the Washington Post article . Again theres two issues at hand. One is the statement that jareds torn provided. Second, the base of this was largely discredited in the first place. Most of the publications here refused to publish it in the first place. So again theres an ongoing investigation. John. We talk im sorry. Thank you sean i have two questions. First, the president for the second time in a month retweeted his desire for the senate to reduce the votes to pass anything which would effectively scuttle the filibuster legislation as has been scuttled for nominations. Is this something he discussed with mcconnell or any leadership before he tweeted . I think the pace hes had with the senate has been long standing. Obviously the rules of the filibuster and the senator led up to the senator of mcconnell. I think some of the discussions hes had whether its his cabinet nominees other pieces of legislation has been documented. He wants to skrab the filibuster entirely . I think he wants to see action on, thats what he wants. Whether its pieces of legislation, he wants action. This president was electriced to get things done and he wants to see things moved through the house and the senate especially when you got a majority of support and people to stop playing games. Second question, i did want to mention before he left to go abroad the president praised fill piece yan president for his action against drug dealers and dealing with them, various human Rights Groups has condemned president saying the drug dealers have been done without trial. Does the president stand by his words of praise for the fill piece yan president. I think the president recognizes the need to combat drugs but he also believes in human rights. Its one of reasons hes reviewing the policies, human rights is strong to them, its something hes discussed in private with several countries. Zeke. [inaudible] has the president made the opportunity to sign another waiver . No. [inaudible] 24 hours . When the president has a decision to make well let you know. And also on a few other reviews, the isis review as well as the afghanistan review, whats the status of those . You mentioned [inaudible]. I think on the afghanistan review hes still review that from the department of defense. When we have an announcement well let you know. Sara. The president tweeted on sunday he thinks republicans should quote, add more dollars to lucky and make it the best. What did he moon by that . Well, theres a lot of savings coming out of the repeal and replacive right now. I think were at 118 billion that we saved through the president s efforts. Healthcare is something the president have been clear on as well as a candidate and through his presidency, to make sure the American People get the care and access ability they need. Hes going to do whatever it takes to make sure people have equal accessible healthcare. But did he mean to the pool, [inaudible]. This is the bill in progress and its in the senate right now and hes willing to work with them to do what ever it takes. Olivia. Afghanistans been the countrys longer war how much of the american blood is the president willing to ex expand and do you see he think its a winning conflict . He wants to defeat isis, al qaeda, he wants to defeat threat and terrorism. I think i just read to you through the the trip that was the common threat. The uniting muslim world, talking about it with the different president s and with the pope. Wherefore he went on this nineday trip protecting our country and the worlds people was at the front of that discussion. And i think he wants to do what ever he has to do to make sure that our country and our people are safe thats why hes asked petitioner this review. Ask you a couple if you dont mind. First off tax reform. The president tweeted over the weekend that it was going quote, very well. You just used the word progress. However the republicans on the hill seem to be divided. Maybe they should reverse the filibuster rules. Im wondering what the progress is and iowa going really well tip tip . I think it has been very welcoming as well as in the business community. Part of what i just mentioned to the previous question, part of the reason hes frustrated with the senate rules is because when there is a majority of support on key issues and key places in the information progress he thinks its standing in the way of progress the American People stands for. The domestic director on the foreign trip, Joe Lieberman was the where does the fbi director search stand . John pistol is he at the white house interviewing, is he the leading at this point . The president will meet with two candidates this afternoon. When the president feels as though hes met with the right candidate hell let us know. Hell meet with candidates today and continue to do so until he finds the right leader. Are they v2 finalist at this point . The president is the ultimate Decision Maker and when he make it is decision as to who he believes is best to lead the fbi hell let us know. Katy. President tweeted that had the tax reform is going well, does the white house still stand by its deadline tax reform and does the wous still believe tax reform and the infrastructure is going to get to be clear there are two separate issues. The talks that secretary mnuchin and other members of the staff have had and the thought theyve gotten to the president s tax reform performance is welcoming. The president in general finds it frustrating how the senate operates. Im dating this back to the hold up they had on some of the qualified nominees. We dont want to mix those two issues together. I think he feels very encouraged by the reception that hes gotten tax reform. Circumstance mnuchin who made the comment said it was a goal wed work as hard as we can to get it done. Hes pushing hard on healthcare, infrastructures a priority. The president s legislative agenda is in full swing. Where do you u. S. Chairman relationship right now and how important is that relationship to the white house and the president and the more than public . I think the presiderelationst the president has had with marco its unbelievable. They get along very well. He has respect for her. They continue to grow the bond they had during the bonds in the g7. Any views are as important as the American Allies. During his conferring at the g7 the president confirmed the need to improve the transatlantic relationship. How did he view her comments where she felt europe could no longer depend on the United States. Well thats not what she said. She said the time when europe could rely oilily on others is somewhat in the past. As ive witnessed over the past few days europe must take its feat in its own hand. That means working in friendship with the u. S. , uk and relations with other partners. Thats great. Thats what the president called for. The secretary of nato says the president s call is moving them in the right direction. The president is getting results, more countries are stepping up, their burden sharing. Thats a good thing for them, nato and america. Scott. Yeah shaean, the meeting wit lauro about defending himself [inaudible] and possibly go over his clearances . Im not going to dig fie partisan accusations of Anonymous Sources and alleged unsubstantiated attacks. Im not going to the president whether or not the president has a lot of meetings. If he has a decision on anything well let you know. Brian. First welcome back by the way. Two quick questions. This weekend while you all were gone someone shout out the election in and we understand what happened in montana with now congressman gianforte, he has a misdemeanor charge assault, will this administration take a stance against violence of reporters . Well take a stance against any individual. Let me follow that up with would you support legislation . You all have been ones coming out screaming against fake media would you report such legislation of we have a constitution brian that sports the first amendments. Allow all americans, anyone in this country the freedom of expression, we support that full. The second question, when you say youre going to try to defeat isis and al qaeda, what are you doing to eliminate the abject poverty that is the breeding grounds for terrorist . What we mentioned before the National Secure team is putting together a solution to defeating isis. When thats complete well have something for you on it. You said that a back channel is appropriate for a diplomacy i did say that. I said secretary kelly and general mcmaster commented on that. Can you add more to that. How is it appropriate for a private citizen not sworn in the u. S. Official u. S. Government to conduct any kind of negotiation or diplomacy with a foreign official . Again id refer you to the comments what circumstance kelly and general macmaster said about how they can be an important tool in diplomacy. But at the time there was no one closer to the president who was working in official capacity. How is that poerpt . Again officials working in Foreign Policy says that could be an effectivive tool. Shannon. I know the president hasnt made a public decision on the paris agreement, on the more broad issue of climate change, can you see whether or not the president believe human activity is contributing to the warms of the climate . I havent asked him. And do you feel like that is a decision hes still trying to make . I dont know. I havent asked him that specific question. Just real quick. So as part of the tweet about wanting to add more money to get better healthcare, would the president consider putting back some of the obamacare taxes taken out of health bill as it goes into the senate . Would he be in support of keeping taxes in there and taking on healthcare . That negotiation is still ongoing with the senate. And i dont want to presuppose what he would or wouldnt do. The europeans must take our destiny into our own hands, how did the president react to that and will this have any effect on what he decides to do with paris . I think he like i said a moment ago. The president believes that seeing europe and other nato countries increase the burden sharing as a very positive thing, for their own countries, for nay know as a whole and for United States. Toll see the individuals heed the call so thats he has put out over the last several well over a year. But when you look at the comments that the circumstance general made, he recognizes that the president s rhetoric has had an extremely positive affect on the strengthening of nato and other countries stemming up the percent of their own gdp. That benefits everybody, it benefits us, nato and themselves. Would it affect his decision on paris . What im sorry. Would it have any affect on the decision on paris . What he decides is up to him. [ inaudible question ] i dont think so. I think the president is pleased with his team and he has a poe bust agenda that hes looking for to working with congress to get done to achieve of the American People. Is the white house considering at all . Maybe be drked more i dont think theres anything we havent said before about how weve got a the president has an unbelievely qualified cabinet. If we cap to do that on key issues were going to do that. The best messenger is the president himself. Hes always proven that, that he is is t best messenger not just for what he wants to articulate but the American People chose him as their president because he understands the frustration and values and concern of the American People. Do you think that with the messages hes done thus far . I think hes pleased with the staff. I think hes frustrated like i am and maybe some other to see stories that come out that are false. Narratives that are wrong, to see quote unquote fake news. Whether you see stories that get perpetrated thats false and not based if fact thats troubling. Can you give an example of fake news sean . Absolutely. Friday night the president was having sa great discussion at the g7 and someone from the bbc and ultimately in coming reports from the times retweeted the president was being rude by disrespecting the italian Prime Minister. And you all have seen and watched the news with the aeropiece used by other president s and yet the president did a great job at nato building stronger bonds and increasing the peace around the world. Thats the case that the bcc and ultimate reporter at the New York Times push out and perpetuate with no problem youre shaking your head here, its true he did it. Reporters make mistakes. But thats just fake. Youre making something out of one tweet instead again you guys do mistakes like that. With all due republican was asked to give an example and i did. [ inaudible question ] i gave an answer to jim. The problem is the president to the question gets frustrated when he sees evidence not based in fact [ inaudible question ] i answered that. With all due respect when you see instances like that [ inaudible question ] not here. I didnt come with a list of things [ inaudible question ] thank you i appreciate it. You get to decide whats big and whats not. Theres a lot of stuff pushed out based on unnamed and unaccountable sources that are incredible. When you see the same thing happening over and over again it is concerning. The president has fugtd very hard to bring back jobs. As i mentioned, you had over half a trillion dollars of investments thats coming in thats going to grow jobs and our economy. That should be the big story. The president s results when it comes to fighting terrorism was a big deal. The ideal standing up and fighting globalism in saudi arabia thats a big deal. The reports that theres going to be an overhaul and i know so now you want to go back to that. What im telling you is the reason the president s frustrated because theres a perpetuation, a false narratives, use of unnamed sources so ever and over again that dont happen and i think thats troubling. Thank you very much. Weve been listening to white house president circumstance sean spicer. His first many bereaving in many days. He spent the first ten minutes or so going through the administrations what they deem is accomplishments. He was asked questions about Jared Kushners role in trying to set up back communication with the russians. In terms of Financial News they talked about the president s relationship with jaime and merkel saying the relationship is quote unquote unbelievable they get along very well. Lawmakers in germany saying trump is viewing merkel as a opponent. They talked about the agenda, tax and healthcare and that is quote unquote full swing. What would you make of this press briefing . I think sean spicer got through it pretty well. He just got through pretty well. Sub stannively, i still believe, maybe im wrong, the most important thing to happen on that trip was that president trm completely changed or policy regarding iran and saudi arabia. Okay. Obama was pro iran, trump is against iran and the i rain yan deal. Obama was the at least discourteous to the saudis. Trump is getting close on the nato lines led by saudi arabia and also israel. Trumps made it very clear america is proisrael, obama did not to be honest with you. Regarding the g7 political jargon. We changed the american policy and for my 2 cent we changed it for the better. Where does we leave it with iran of president obama in i dont think we heard the last of that. In that deal United States has the legal capacity to reembark economic sanctions. And a lot of deal has been broken anyway because they have not had the full vetting of the news yark, prenuclear so yeah we havent heard the last of that. But the main look, he said to these guys look, you have to help us. He said that to them, all assembled, i dont know how many countries there were. You have to help us by kicking them out of your good mosques. He said goat things about muslims. And second of all they want to have a ground force right, were going to bomb the he cck out ofa ka and its going to happen. But they dont want american boots on the ground in a major way. That has to be done by the soon anies and the arab muslims and our friends. Thats what happened there that was a big step. That was huge, to me this other stuff is just jargon. Do you have any frustration, larry, at all, even personally that when the president seems to make a step forward he makes a step back ward as well . It seems like when we get somewhere we get a tweet about the Fake News Media or whatever it may be, thats outside the core of what president is trying to do . Or is that the strategy, look over here look over here, starting twitter controversies and decision distracting, oh bright light . I dont know about that part. It has been a distraction, but, but but but but, theres a lot of planning going on in the Treasure Department and elsewhere about the tax cuts along with the house and along with the senate. I wouldnt write it off. Im an optimist here, the healthcare reform is going to get done by this summer. And remember that merkels running for election, trump ran against her, her coalition doesnt like trump, i wouldnt read a nickel into all that but shouldnt they peony up these nato companies, isnt trump right about that . Whats the big deal . Hes got a great point on that. Point others are made hes following up that is correct yeah. Larry thank you. Much more power lunch straight ahead. Mom gets breakfast in bed. You get to do the dishes. Bring em on. Dawn ultra has 3 times more greasecleaning power. A drop of dawn and grease is gone. 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. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Welcome back to power lunch. We have some breaking news out of uber. We can confirm the company has fired its former Google Engineer that is at the heart of its dispute, anthony he said dow c has stepped down voluntarily a few weeks ago. This was the star engineer that was the head of this division and he has asserted his 5th amendment rights in this case. He has refused to cooperate. The company has been pressing him to comply and looks like theyre not waiting around anymore, not waiting for this case to make its way through the court. Court will be held public in october. The uber engineer at the heart of this case has now stepped down officially. He has been fired. Deed dra thank you very much. . Back to your markets. A yew pity sector is beating the market this year. Rich ross and stacey gilbert. Stacey is this really a love of utilities or the fact that bonds are doing nothing de facto bond . Yeah. No, absolutely right. This becomes more of a de facto bond. You look at when they started to take off. And more interestingly, the tenyear, twoyear treasury spreads collapsed below one here over the last week or two, we saw utilities take off. From a utility perspective, its not a sector i love adding more money to. It is rich. One of the areas interesting and the strategy i like that investors are implementing currently today, actually, have been, is looking at the individual names and overriding, selling upside calls against Long Holdings to enhance yields to recognizing levels where they think the stocks are ahead of themselves and looking for the next point. Thats the right way to play now. Rall right. Charts agree or disagree or no opinion. Little bit of both. Regardless what you think, chart of the utilities are a buy. This is what i mean. A strong stock chart here, brian. 12month base of support, and theres a textbook breakout from the base, a bull flag along the way, i can get you to 60 on the upside, but thats punchy stuff. To the question about being a bond approximaproxy. Look at one thing, brian. This is that long term chart of the xlu, a long defined uptrend, held the moving average now for almost seven years, flip that upside down, you get the deal, but whats interesting, brian, this is a new alltime high on the utilities, but the yields are not down, so, yes, they are a proxy for Interest Rates, but whether they have been rising or moving sideways, ewe tillties move forward, bullish, you want to be a buyer of the breakout. Wow. Buyer of the breakout in utilities. Rich, thank you very much. Thank you very much. For more, thank us, going to tradingnation. Cnbc. Com. Back in two. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs and i get back to business. I did active duty 11 years. My in july of 98. 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. I count on my dell small for tech advice. With one phone call, i get products that suit my needs and i get back to business. Youve heard about hightech salaries driving up housing cost and driving out paid workers, and now teachers are the latest group of workers squeezed out. We have more on this. Reporter hi, there. Im standing in an Apartment Community in Silicon Valley in which more specifically designed for teachers. They set pay below market rent and idea from the fact that rising high housing costs here in Silicon Valley and in the bay area in general, and its one that San Francisco wants to borrow as well. In fact, a recent study found theres no Affordable Homes in San Francisco and in Silicon Valley for teachers to buy. The problem is so intense that its prompted the mayor ed lee in San Francisco to commit 44 million to the future housing project. We talked to one math teacher in a high school in San Francisco says hes had trouble finding a a permanent home, shes lived in hospitals and spent a night in a homeless shelter in order to save up for a security deposit. I just have to be able to stay on the move and i kept everything in the bag because to unpack didnt make sense. Reporter she says shes finally found a rent controlled apartment in the city. She hopes it turns out to be a permanent home, and i spoke to a spokeswoman, and she says while the overall rates for teacher have been consistent over the decade, its still a struggle trying to recruit new teachers. Guys, back to you. Thank you so much with that story. We heard this before, theres movement in the city counsel over in santa clara to address this issue of affordable housing. You got people driving 100 miles each way. Out of control. Yeah. Thank you for having me. Thank you for watching power lunch. Closing bell starts right now. Hi, everybody. Happy tuesday, and welcome to the closing bell. Im kelly evans. Im Michael Santoli in for bill. No hard trivia questions, right . Bill had to take a vacation. All eyes on amazon after they briefly crossed above the 1,000 level for the first time after the opening bell this morning. Monitoring stocks closely to see if it closes above that round number level. It was quick. Yeah. So we have an exactly an hour to see if it does happen on the close today. President trumps election has