Transcripts For CNBC Power Lunch 20170724

Welcome to power lunch. Im michelle carusocabrera. The major averages are lower kicking off the busiest week for earnings but the s p tracking for its best monthly gain since february the nasdaq was on track right here, yes. Best month since january oil pushing higher, crude prices up more than 1 . We keep show l well get to that. Financials carving out small gains, utilities and health care lagging, j j, home depot, the biggest losers in the dow right now. Some of the big movers pandora higher on news of state pajama makers, maybe not blue apron, we finally get it, soaring on positive comments but hasbro is tanking. A deeper dive on these stocks straight ahead here on power lunch. Thank you, michelle. Im tyler madison. Waiting for Jared Kushner to make a statement at the white house after his session with the Senate Intelligence Committee Earlier today. We are also waiting for the democrats to unveil what they are calling their better deal for the economy and for americans at an event in virginia weve got both events covered. Were on capitol hill and following the president from the west wing of the white house kayla . Reporter waiting on Jared Kushner just about 30 minutes after he left capitol hill, making his way to the white house where hell be making comments on the record at the stakeout in about 15 minutes thats the guidance the white house is providing at this point. He was mum going into the session earlier this morning, but he did make some brief remarks to reporters on his way out. How did the testimony go . Very well could you answer all the questions, sir reporter this is the first of two congressional interviews that kushner will be making this wook, todays with the Senate Intelligence committee, tomorrows with the house Intelligence Committee those remarks this eel be making at the white house fall squarely in between those two the president continues to attack this investigation from the highest level at the white house. He tweeted this morning about the focus of this investigation saying, so why arent the committees and investigators and of course our beleaguered attorney general looking into crooked hillarys crimes and russia relations . That beleaguered a. G. Remark of course a knock to Jeff Sessions who the president has criticized now twice in the last week but of course health care is the big agenda item this week before the house goes on its recess and before the Senate Weighs a vote later this week on exactly how it will proceed or whether it will proceed Going Forward the president has also targeted that and this afternoon senior white house Officials Say that he will seek to ramp up that pressure on republican senators. And he is also tweeting to that effect as well lets show you what the president said on health care earlier today. Hes saying this is an opportunity to repeal and replace. Republicans have a last chance to do the right thing after years of talking and campaigning on that. Those remarks will take place at 3 15 p. M. Eastern time but of course we have a lot to cover between now and then and well bring you Jared Kushner live when he comes to the west wing back to you. Watching for that thank you, kayla to elan muy with the latest on the democrats plan. Michelle, there is a reason that democrats are rolling out their new economic agenda way outside washington, beyond the beltway in that little town you see there on the other side of your screen. Dms want to show they can connect with working class voters the premise is the economy has been rigged against them and democrats can fix it one way they say is with a new trustbuster, a person whose only job is to scrutinize mergers, Enforcement Authority and the power to review mergers even after this have been completed another proposal takes on Prescription Drug prices there would be a new independent agency sort of like the contraction fpb but for drugs and it would investigate pharmaceutical companies and slap fines on manufacturers that jack up prices this plan would also address jobs by giving businesses tax breaks for training workers. Democrats say this is just the beginning. There will be more announcements over the next few months on broadband, child care, trade, and retirement democrats are looking ahead to 2018 and realizing that just running against President Trump is not enough. They need a vision for the future in berryville are Top Democrats including senators chuck shumer and e Litz Beth Warren as well as nancy pelosi. They should start speaking any minute well be listening in. All right thanks very much cnbcs senior contributor larry kudlow and Jared Bernstein at the center of budget and policy priority, also a cnbc contributor. Welcome. I look at what senator shumer wrote in the times this morning, basically laying out this better deal plan. Jared, they cant do anything until they get some wins and start to control the legislative branch at the very least is this the program that will get them those wins . First of all, let me point out you may have to wait for Jared Kushner but you dont have to wait for Jared Bernstein. No. An alljared ablock were going to jared youre right, they cant do anything until they get some wins and thats a nontrivial part of what this is all about theres nobody Walking Around thinking this congress, who by the way isnt able to pass republican prioritiepriorities,n to take up the democrats prioriti priorities but they have to signal voters for 2018 that while donald trump has certainly captured the interest of people who have been left behind, his agenda doesnt really reach them. Theyre putting out an agenda they believe will, a threepart agenda economic security, jobs, wages, protect Social Security and medicare, lower the cost of the kinds of things that cost a lot for middle class fam lis, Prescription Drugs, college, child care and an employer tax credit to help boost training and retaining workers. Larry, i dont think ill have to say much to get you started. But im going to ask the question how did the democrats lose the working class they didnt talk to them. They just called trump names because the democratic candidate didnt travel to any of states she didnt listen to her husband, bill clinton, whos the best democratic politician weve seen in decades. Regarding this new schumer program, please, dont forget, part of that deal as you said on the talk shows yesterday is Single Payer Health care secondly, bailing out insurance companies. As far as Prescription Drugs, yeah, everybodys concerned about Prescription Drugs, but a governmentrun plan is not going to work. In fact, governmentrun programs, take medicaid, which mr. Schumer talked about yesterday, medicaid, which is a disaster and has spiraled out of control and has expanded and expanded with no eligibility requirements anymore, thats the perfect example. If you want a Democratic Program that is going to be government run, single payer, take a look at medicaid, which has been a disaster i think we need to go in another direction. Can i ask you, jared, drug pricing czar, an antitrust czar, the russians gave up czars in 1917 but you guys keep bringing them back for what first of all, lets figure out whether were talking about tsar or czar because thats different. These are not ideas that are constructed to make Michelle Cabrera happy, no question, git that but they are very much in the spirit of reaching out to lots of swing voters, not to mention democrats in the base who believe that the economy as liz warren has long said is rigged against them this Corporate Trust bust idea and the Prescription Drugs, certainly youre not endorsing, michelle, the idea you can buy a drug patent and take the price from 20 to 3,000 but the doj already exists. Good points Chuck Schumer said why did they allow exxonmobil . I think that deal got approved last sim russia had a czar i think those are very fair points that said, one could argue that whatever the ftc and doj are doing on these fronts theyre not going far enough in fact, im sure thats what chuck shumer is arguing right now on the split screen. Look, theres nothing in the socalled democratic plan, whatever it is, that will grow the economy, that will help Small Businesses, that will increase productivity and real wages. I disagree. All that space has been occupied by mr. Trump, President Trump, and hes going to get his way in my judgment because theres going to be a major turn towards tax reform with oval office speeches, going out and rallying, and staying with the simple three easy pieces that weve talked about so many times. I spoke to the president about it ive spoke on the National Economic council productivity, growth, jobs, thats the best antidote to the 2 economy that weve had. The democrats dont have an answer there is a tax credit for job training which presumably would lead to higher productivity. We have tax credits we have all these job Training Programs coming out of the federal government none of them work. What should be done is all that stuff should go to the local and state levels with Community Colleges and trade schools and tech schools, which, by the way, is in trumps plan and is in the apprentice plan from ivanka trump thats old news. The democrats do not believe in Economic Growth. All they want is czars as michelle said. Hold on, larry. Theres about 30 of what larry said that i agree with, and thats actually pretty good for us thats good there are a lot of effective Training Programs but the democrats have been studying this for a while, joe biden but looking into this, and you have to figure out what local employers want and need in terms of labor i agree that sort of an employer side tax credit, you know, isnt exactly going to be a big job booster in the long run. I think what makes a difference to productivity is going to be, yes, the skill of the workforce, and i think this plan helps in this regard, but also pulling more people into the labor force. With we dump on the european labor market, but in europe, women have higher Labor Force Participation than they do in our lay bob market why . There are more Family Friendly policies there larry, we have to tie it off here we have to tie it off. Ill let you finish, larry, in a sec, but i want to get your reaction to the comments that the president has made about his attorney general even this morning describing him as beleaguered attorney general. His own guy. And being critical of the idea that the a. Zbvmt ng. Is not investigating Hillary Clinton and so forth can Jeff Sessions hang on . Look, in my conversations with the president in the last two weeks that subject has not come up, thats not my area. Thats between the president and the attorney general i have nothing to add to that whatsoever heres what i want to add. Small businesses in this country want tax cuts. And the democrats, i dont know why, the democrats are staying away from business tax reform. They dont need to there could be some kind of bipartisanship on this that president obama actually had tax reform, although i didnt like it, but it was in his budgets, it was never pushed. Wheres the schumer tax reform where is it going to help Small Businesses and jared does have a point. All these job Training Programs should be worked on at the local level. Jared kushner lets listen my name is Jared Kushner. I am Senior Adviser to president donald j. Trump. When my fatherinlaw decided to run for president , i served his campaign the best i could because i believe in him and his ability to improve the lives of all americans. And now, serving the president and the people of the United States has been the honor and privilege of a lifetime. I sam so grateful for the opportunity to work on important matters such as middle east peace and reinvigorating americas innovative spirit. Every day i come to work with enthusiasm and excitement for what can be. I have not sought the spotlight. First in business and now in public service, i have always focused on setting and achieving goals and have left it to others to work on media and Public Perception since the first questions were raised in march, i have been consistent in saying that i was eager to share any information i have with the investigating bodies and i have done so today. The record and documents i have provided voluntarily provided will show that all of my actions were proper and occurred in the normal course of events of a very unique campaign let me be very clear i did not collude with russia, nor do i know of anyone else in the campaign who did so. I had no improper contacts i have not relied on russian funds for my byes. Businesses. And i have been fully transparent in providing all requested information. Donald trump had a better me message and ran a smarter campaign, and that is why he won. Suggesting otherwise ridicules those who voted for him. It is an honor to work with President Trump and his administration as we take on the challenges that he was elected to face. Creating jobs for American People, keeping america safe and eliminating barriers to achieving the American Dream thank you very much, and i look forward to taking questions from the House Committee tomorrow thank you. Jared kushner, i did not collude with russia, i dont know anybody who did, no improper contacts, donald trump won a better campaign, thats why he won larry kudlow, that puts everything to bed, right, the controversy is over . Unfortunately, nothing will put this to bed. I regret that very much. Not a laushgs not an expert on the subject, this russian collusion story is a nonevent, is s nonexistent trump had nothing to do with it. Jared kushner had nothing to do with it. It keeps going on and on and on because the media and trump opponents keep rpushing it there is no there there. A character reference. I know Jared Kushner worked with him during the campaign saw him a week or two back he is smart and clean as a whistle. This just reaching all youre seeing is the worst kind of washingtonian nonsense of reaching for things and trying to stop good people from making their contributions to government its a new crowd just like the reagan years, new people came in, washington doesnt like that. Well, you know what, stop. Jared kushner is a good man. Hes an honest man leave him be just leave him be. Lets get on to tax cuts and regulations and even jareds job Training Programs. Got it. Thank you, larry i heard you chuckling there, jared. Thank you, guys. Good discussion. Health care dominating washington while Earnings Take Center Stage on wall street. 180 Companies Set to report this week the question is, will earnings t mkel naction or take contro ofhearts experience advanced Safety Technology at the lexus golden opportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. You are loved more than 180 Companies Set to report results, a big week in d. C. With health care front and center and the democrats unveiling the new economic plan. Here to break it down, brian jacobs with wells fargo Asset Management, brad mcmillan, cio even though we have this stuff going on in d. C. , the nasdaq made a new intraday record high, 6,400 the level. Is washington off the table at this point what will it take for the markets to move on washington . It doesnt seem to be the case for a while. I think that what were seeing is washington is creating some maybe undercurrents, some of the churning in the market, the leadership that we had coming from november to the beginning of the year with small caps and financials, then you had the leadership change to more technology, more largecap growth arias when it looked like pras an antitrade agenda wasnt going to be pushed politics is part of the narrative but i think the stronger narrative or the real story line is more about that, you have improving fundamentals for a lot of businesses. People are wringing their hands over whether or not valuations are too stretched, but the fact of the matter is oftentimes you can have Companies Grow into some of those fundamentals and i think people were just expecting that earnings would improve. Maybe some policy changes and if youre expecting that were going to continue to have political paralysis, you know, its same as it ever was brad, you know, if you hear the notion, and we hear it time and time again, that maybe valuations are stretched, were at record highs, is it going to be a showme market in terms of this is a huge swath of the s p 500 reporting earnings this week are we entering the sort of sell the news setup going into these earnings reports i dont think so, because one of the things weve within worrying about with washington is that something terrible is going to happen. And right now all the bad news is out so now youve actually kind of cleared the deck for positive earnings surprises and when you look at the way earnings typically come in, about twothirds of Companies Often beat expectations. Were doing much better than that now were beating earnings by more so, theres a real chance for a real positive surprise here. I think the market might well react to that. At the same time, brian, you favor nonu. S. Over u. S. Is what has phenomenon on in the currency markets in the past week, does that change your outlook at all not particularly. And actually i kind of like some of the euro strength that weve seen when the u. S. Dollar depreciates relative to other currencies, thats a good thing when you think about redenominating your investments. If the fed is going to prove theyll be ip credibly patient with hiking rates and if it looks like ecb calibrating of Monetary Policy is turning into tapering, that could i think further depreciate the dollar, which is bullish for nonu. S. Equities brian, youre starting to like energy. Arent you worried youre too early . Thats the concern. Absolutely. Go ahead. You know, youre very early in the cycle but at the same time you see the supply start to come back, youre seeing the supply start to be constrained, seeing prices start to have an effect and youre seeing Energy Companies making money even with prices where they are. I think theres an opportunity there. We may be early, but it will happen all right gentlemen, thank you brian and brad thank you riddle me this look at this video this home in dallas had 22 offers when it went on the market, but the seller did not go with the highest bidder wait till you hear the answer about why and what it says about the overall market when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Welcome back to power lunch, Rick Santelli on the floor. They did grab back the little they lost to the downside on friday, tenyear ts. If you look at a one week of the dollar index, whats fascinating is it continues to drift virtually for weeks without any real big bounce as it hovers with a 93 handle theres been only one single payer triggering currencies and thats the euro. Look at year to date chart of the euro versus the dollar, up a little over 10 on the year. Its now trading with a 116 handle finally, if youre looking far little extra horsepower, you always look to high yield, the etf hyg, year to date, continues to make new highs, hovering at the best levels in two years tooiler . Still ahead, allegations of a german car cartel, the big thre in germany been price fixing the industry what it could mean for the companies and for germanys economy, next. [ crickets chirping ] [ light music playing ] youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Hi, everybody. Im sue herera heres your cnbc news update for this hour. A new poll from usa today shows 42 of americans believe congress should impeach President Trump and remove him from the presidency. And 42 say they should not. 15 were undecided americans are equally split on whether they would be upset if he is or is not impeached. Israeli police say a palestinian man stabbed an arab citizen of israel after apparently mistaking him for being jewish the attack took place in Central Israel the 21yearold attacker was working illegally in israel and was quickly arrested a new Pilot Program in maryland is testing drivers licenses on your smartphone. Over next few mos maryland transportation employees and their families will begin digital i. D. S to begin at a handful of businesses. The winner of the race between a shark and olympic star Michael Phelps is the shark. In case you didnt know, that shark was Computer Generated and no one was hurt in the stunt great whites can swim up to 25 Miles Per Hour while phelps can swim up to 6 1 2 Miles Per Hour. It was fun tv, nonetheless six Miles Per Hour is fast back to you. Pretty fast through the water. Should have given him a handicap or a a thin cap. Something like that. Sue, thanks you got it. Shares of the big three german carmakers sliding today on reports that european regulators are started an investigation into allegations of a cartel between bmw, daimler, and volkswagen. This could have major ramifications. The Auto Industry makes up about 20 of germanys economy Philip Lebeau is live in chicago with more. Phil tyler, more questions than answers right now about these reports of an investigation out of europe, and thats what they are at this point, reports that theres an investigation by the european commission. Heres what they are reportedly looking into this question about whether or not the german automakers are colluding when it comes to looking at the type of technology that is used when it comes to diesel emissions within vehicles again, the argument is or the allegation is that there is a cartel that might involve some form of pricefixing again, these are only reports at this point as you take a look at shares of volkswagen, were going back almost two years, the reason were showing you this is that these shares which really got hit when the diesel emission scandal erupted in september of 2015 and the ceo and chairman resigned from the company, theyve bounced back a little bit. Keep in mind, the Supervisory Board of volkswagen, it will be meeting on wednesday of this week the company is saying were not talking about what we are discussing overall when you look at other automakers and how they might be impacted by this, we reached out to all of them bmw says emphatically we have nothing to do with any type of collusion. In fact, the Company Spokesperson says bmw Group Vehicles are not manipulated to comply and comply with respective legal requirements. Of course this also applies to diesel vehicles. Bmw reported record sales worldwide in the first half of this year. Take a look at shares of bmw over the last year you know, it was just last month we were down in South Carolina at the bmw plant in spartanburg and i had a chance to talk with herald kruger, the ceo of bmw, and we talked to him about not only the questions about diesel emissions but also about manufacturing here in the United States as well as in europe. Remember, they built 411,000 vehicles at that spartanburg plant. This is where all the suvs word wide come from theyll be adding another thousand jobs through 2021 as they expand that production there. The bottom line is questions continue to swirl mainly in europe regarding diesel emissions and diesel technology. And the reason this is a huge deal over there is because, remember, diesel, its the predominant form for the vehicles over there. Not the case here in the United States where its gasoline over in europe, though, it is a huge issue phil, youll be keeping an eye on it im sure phil lebeau, thank you President Trump entered office with an economic message of America First floating the possibility of tariffs and quotas on imports. Americas steel producers say Government Action is desperately needed to stem the flood of cheap foreign steel, especially from china lets bring in barry we had you on last week i believe during made in america week this week were going to talk maybe more pointedly about the threats that you see coming from a foreign steelmakers, china among them, but i want to begin with your quote which you told one of our producers here, i view south korea as a bigger threat even than north korea why . Well, certainly i mean, were under economic world war iii right now. You know, south korea is bombarding us with steel that is transshipped through china theyre bombarding our electronics industry, Automobile Industry and really taking our jobs and its got to stop. Unbelieve whabls going op what would you propose the administration and congress do steel from china iscircumven they use south korea as one. Its beyond ne why someone so afraid of north korea moves steel through south korea in a singlepurpose industry, the pipe and tube industry, where they use not one pound of Oil Country Tubular gods in their industry its strictly there to move chinese and korean steel into the u. S. At a rate that is outstanding. 500,000 tons a month which is the equivalent to two full mini mills. They dont have any market for that product in south korea. I can anticipate the answer to my next question. In your view certainly an economic threat but i would assume you view it as a National Security threat. Absolutely. Everyone is making the mistake of equating the Steel Industry in the u. S. To just steel used in the military where really the National Security aspect comes into effect where its used all over for our buildings, our bridges, our roadbeds to transport our gas, to drill for our energy and make us Energy Independent. This country wouldnt function without a domestic Steel Industry to think that that industry why is the steel that does not come from the u. S. , not made in the United States, why is that vulnerable . Well, some of it is fine to have it come in here im a free trader at heart you know, i want free and fair trade. Theres many countries we deal with, canada, for instance, as one, is a fair trading partner when it comes to steel and there are many others. But there are certain countries that are used as a conduit to move very cheap dumped steel into our country and its really decimating our Steel Industry. These are two separate issues, right, barry we are talking about an economic issue. Tyler specifically was asking about a National Security issue in terms of using this steel for gas pipelines, et cetera, et cetera. Is there a security issue in that the steel for some reason is weaker in any way or more vulnerable or more cheaply made than steel made in the United States well, i think its twofold. Yes, there is that there is steel that comes in here in the form of pipes and tubes and others where they lie and actually circumvent what the regulations are on the product they dont test it properly. It has much higher failure rates and does compromise our safety the other is by decimating our Steel Industry, if we dont have a Steel Industry to make these goods on our own, look what happened back in the 70s when we didnt have oil, when we werent Energy Independent the lines at the gas pumps were three, four, six hours long. And look how vulnerable we were. If we didnt have the Steel Industry to support our economy, to be able to extract our own energy and transport our own energy, we put ourselves right back in that position. Its really amazing that talking about driving up costs dramatically i mean, lets assume that buyers are smart enough to know theyre not going to buy junky steel and decent steel but the two compared together youre talking about driving up costs for the American Consumer and the American Economy i think thats a misnomer you just said that steel is much cheaper because of all these imports, right if those imports go away, the prices go up, right . Lets talk about how much a typical well thats drilled for horizontal drilling costs about 7 million to drill. It uses about 400 tons of steel to drill that well the price of that steel goes up 400 a ton, youre talking about 160,000 on a 7 million well. Right . Thats about 2 . Just not by that much or at a cost you think the United States should be willing to bear. Oh, its a tiny percentages the consumer would never even feel that cost at a gas pump the steel used in a building, say the electrical steel used in a building or the conduit thats in a building, is about 1 of the electrical contract. In a building like a skyscraper, the steel is maybe 3 of the cost in that building. Cost that would go up to the consumer for what they would gain in National Security and safety and our own independence and our ability to support our economy is minuscule got it. Okay mr. Zekelman, thanks so much youre welcome. Barry zekelman. Last week the u. S. Committee that reviews foreign buyers for National Security risks has been holding up several chinese attempts to buy u. S. Companies one of those deals is newly appointed White House Communications director Anthony Scaramuccis efforts to sell his company, sky Bridge Capital, to a chinese continue grom lat. Joining us is mario mancuso, a former cfius member and former secretary of the commerce. He served as adviser to george w. Bush. Good to have you on the line great to be here. Ive seen cfius reject in the past semiconductor deals because theyre worried about chinese acquisition of certain kinds of technologies, president obama halted the construction of chinese turbines in oregon because they were too close to a Navy Military installation tell me why a fund of funds would be held up by cfius. Is there any National Security issue there . So there may be, and that really depend on the way the u. S. Government looks at it, and they look at it in two ways. Whos the buyer and whats the target, whats the asset going after. But, again, the point is this goes against the backdrop of a u. S. china relationship. So there are two levels to how we think about it. In the first case, h a, the buyer in this case of mr. Scaramuccis fund of funds has a long history before cfius and theyve run into some headwinds. The issue here is who controls that buyer and whats the connection to the Chinese Government cfius is a National Security review body that will look at this closely, not with a fine toothed comb but with a wire brush and maybe at the end of the day there is no National Security issue the question is whether theres a National Security question and i think u. S. Government regulators will look at this deal very closely. Whats interesting is this comes a at time when the Chinese Government itself is taking a very close look at all these chinese continue gom lats because you had this flood of easy money, a lot of tycoons in china, and they sort of piece together a network in order to buy various assets and its really not clear how these guys are enmeshed in the Chinese Government, in the chinese economy, et cetera if chinas taking that stance with its own conglomerates, wouldnt that lead you to believe that sicfius should tak harder stand on Companies Like an h a and other Companies Making overtures to u. S. Companies here i think that point can be made even more forcefully, which is that its not just the United States and its not just china germany just a couple weeks ago announced a cfiuslike regulation to review Foreign Investments. There are other countries in the world that look at, you know, Foreign Investments in their own ken country and a lot of that sort of energy, regulatory energy, is coming from chinese outbound investment. The chinese do it in terms of looking at their own large banks and financial institutions, they certainly do it at outsiders including, for example, u. S. Companies investing into china, other countries in addition to the United States are doing it this is a big issue. The notion of how does a country review Foreign Investment into it for purposes of its own industrial if you will resilience that said, really important question theres a difference between National Security analysis and protectionism. And cfius iman daytoday, which i believe should remain this mandate, is really to narrowly focus sort of in a rifle shot way on National Security and not just throw in other considerations ta sort of drape the words National Security around it because thats not helpful to anyone and not help to feel the economy. Thats kind of my question. Im still not getting what the National Security imperative would be in selling an Asset Management company to a Chinese Business that may indeed have connections either to communist party, which is in effect the government i dont know what it would be other thanwy doing so with a principal who is a close associate and now a staff member of the president that it might indpluns him in some way or another. Explain that to me one more time second, could the president veto a recommendation by cfius . So on the first point, this may not be a National Security issue. I think what cfius will be looking at closely is what is the fund of funds do so, for example, one of the questions i think cfius will have in this case is will the Chinese Party here at h a capital by virtue of closing on this asset manager, will they have access to sensitive Financial Information of the base of the asset manager. Important stuff. Sky Bridge Capital currentlies several billion dollars worth of access answer is probably yes to that question, by the way will it give h a capital some extra visibility into this because cfius is very concerned about personal identifying information, Sensitive Information about the Financial Sector in particular thats one factor that cfius will look at the other piece that frankly none of us are in position to assess because this would be confidential to cfius is if that asset manager, if sky bridge is investing in assets that are not publicly traded, i recognize its a hedge fund, but if, for example, if theyre investing in operating companies it may be a line of business that they have, what are those operating companies . If h a would require control of the asset manager, they would indirectly acquire control of this underlying assets those are two ways in which cfius will look at it. At the end of the day, there might not be an issue but theyll ask the question could the president veto the recommendation of cfius, how often does that happen the president has the authority. It doesnt happen frequently because if sif yusz, which acts on behalf of the president and represents a Cross Section of the u. S. Government agencies that are responsible for National Security, if you have that Cross Section of government going to the president and saying mr. President , we think you should block this deal, yeah, the president has the authority to go against them, but for political and policy reasons it happens very rarely i dont think lit happen here. Mario, thank you very much for your time and insight. Mario mancuso, former cfius member home sales dropped in june but home prices hit a record high some serls arent taking the highest offers thats a question for diane olick live in washington hi, di hi, ty. The answer is because cash is king home prices and seams are moving so fast right now that home appraisals are just not keeping up case in point, dallas Area Real Estate agent Laura Barnett got an offer on this home in less than a week and she got 22 offers on another home she listed three weeks ago, but she did not take the top offer on that one she took the cash offer. We go with the cash because the appraisals have changed in the past year, and so theyre kind of putting a glass creeling where we cant raise our prices any higher than we have comps to support it so were definitely going with more cash offers than we used to not only did the median National Home price of a home sold in june hit a new record, the average days on market dropped dramatically as well prices and sales are moving so fast in some tight markets that the appraisals, they just dont keep up with that price. Lenders are very strict with appraisals today, unlike during the last housing boom when just the opposite, of course, was happening, and we know how that turned out this is making it a lot harder for first time home buyers to get into the market. Not only are they usually mortgage dependent but they often use low down payment loans and are unable to bring any cash to the table if that appraisal doesnt meet the agreedupon price. Lots more realtycheck. N nbc. Com. The dow up more than 15 so far in 2017. Why some on the street think it could rise another 15 from here tethrealheamoft afr is hey, ive got the trend analysis. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Weve created a hightech vehicle unlike any other in the market there are vehicles aimed at 2 to 5yearolds and others at 9 and above. The reason the gap exists because parents are reluctant to put their 5yearold into a car that goes 12 miles an hour weve solved that problem. Weve created a kids go cart that is both fun and safe. Parents can remotely supervise their kids with a mobile app, gives them the ability to adjust speed limit, emergency stop, set Collision Avoidance them emergency stops and collisions there is a huge market over 20 million families in north america globally because of our safety features, parents view your products as a great value. This is just a start soon well have electric vehicles welcome to todays powpower pitch. And our david woo, okay, you heard what dave had to say hes in the hot seat kick it off. At a thousand vehicle is an expensive toy for a five or nineyearold. What do you say look, this is just for the wealthy parents techy in sill licon valley. Being a parent myself and nothing i love more than my kids when i find a toy thats dpi exciting for them and it is safe because of parental features i think for most families in north america doing something ta justifies the price point. I am trying to wrap ahead around the market of how large for a market of a thousand dollars toy. People living in big cities probably not going to buy our product but well over half of the demographic lives in sb suburbans and lower cities david whats the ultimately vision of the company, is it to be a toy company or an electronic Vehicle Company . We are categorized as many times as a toy we want to be seen as sb intelligent vehicles and not into toy category. How is it powered it is electric powered so you dont have to worry of gasoline or fume. It is very safe. How is the battery in case of the best seat because that happens with an issue of other ee companies it sits behind the driver in a protected area whats the most benefit of the parents and child. Getting kids to develop power control skills before they get behind the wheel of the actual road from parents using our apps, they get to supervise their kids remotely. We heard what dave had to say, now we want to know if the panel is in and out . This is a great product and future cast i can team behind it however, it is really pricey at 1,000 per vehicle, i am a little concerned that there may not be a broad market for it i would like to see a little more traction and see there is a pick up broadly in the country and beyond but roiight now i am out. A thousand dollars for toys is more than familys budget for that reason, i am in of parentss proposition. The inner kid in me, and of a parent of an 8yearold girl or 11yearold girl, i can see how strong the profit market fit here, despite all concerns, i am going to vote in dave, whats your reaction . I certainly do and the feedback of our customers validate that. Our tahanks to you thats todays power pitch. It is time to find out whether you are in or out, use th the powerpitch. The four big calls you need to rit ows re tk dk ghafter this we created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . Learn more about the ink business preferred card. Time for street talk. Mcdonalds is bumping its price on the stock of 170 after visiting a number of restaurants. The firm has a high degree of trend and the company will likely continue in 2018. Chels telsey feels that the company has a high deal. Next up we have caterpillar upgrading their stock reforms for three reasons. New management is expected to concentrate on profitability okay, and aggressive Cost Cutting Program thatll consolidate 30 factories price targeting up to 125 and 16 upside cats are up 36 over the past year ubs says trading can rebound. Analysts have difficult to rely on such an event and downgradin last week. Zero recoveries since its earning report allan, thank you very much. It is taking a beating since its ipoa slew of british calls out on blue apron today. The analyst is among them. The stock is up 10 right now. Isacinines per hour of theow bk mut you always pay 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. 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Welcome back everybody, the second hour of power lunch forgive me in advance if i sneeze, i feel one coming on i am Tyler Matthew here is whats coming on the me view the democrats laying out the ground work for a new economic platform aimed at helping middle class workers but also taking aim at corporal america in a couple of ways plus, cooking up gains, wall street all of a sudden falling in love with blue apron today. The seven firms initiating the stocks of positive ratings well talk to one of those a 30 rally ahead. Drink up, a Record Number of americans are drinking tequila well talk to the president of avion of the big business. Power lunch starts right now lets get a check of our markets here nasdaq is hitting an all time high s p 500 are lower at 46 points and nasdaq hire by 11 points and pandora is jumping up. Defense stocks and honey well and r aaytheon is hitting an al time highs today the imf is expected to grow 2. 1 in 2017 2018, outlook was lower from 2. 1 to 2. 5 american failed to get refunds, delta under reported of bag complaints and frontiers bumping passengers from over booked flights web md, deals come after web md announced earlier this year exploring Strategic Alternatives stock is up 20 with the news. New plan for the economy with the details in washington hi ylan mui reporter the big mistake is not talking with working class voters and laying down the vision for the economy today, they go to the tonight any town, senator Chuck Schumer was there. He says that President Trump is better at messaging but he says voters are being disallusion donald trump was not the champion working man that he claimed to be. We democrats can answer the calls of millions of americans like these folks i sat next to by offering them a better deal [ applause ] a better deal, thats the name of democrats new economic platform it includes an independent agency to take on the cost of Prescription Drugs and scrutinizing corporate mergers and Cable Companies and senator Amy Klobuchar of minnesota says we have to bring down the prices we have to pass down stronger laws so they cannot merge and make things work for the American People. Well introduce a stronger standard under our antitrust laws it is a rural town that went for trump and democrats have been trying to turn it blue for years. Guys, 2018 is getting closer everyday all right, thank you very much in past hour President Trumps soninlaw Jared Kushner made a statement following his meeting of the interactions of the russians during the president ial campaign. I have been consistent if saying that i was eager to share any information i have with the investigating bodies and i have done so today. The record and documents i have voluntarily provided will show all of my actions were proper and occurred in the normal course of events of a unique campaign we are expecting President Trump to make a statement on healthcare in a little over an hour from now so well get to that it is interesting that we rarely hear Jared Kushner speak it is interesting to hear him speak. He denied any source of hint, collusion. Thats the first time i heard him speak publicly from a podium from the white house for sure. There was one other event, tech event where he had to spoke but it is only the second time during this entire process of the campaign the sub texts in his comments and of a lot o things, it comes back to the narratives that the Trump White House clearly believes that virtually all of russia has to do about discreditable of his election victory. Thats what makes the white house so angry is that they see it through that prism. I am not sure if most americans, a lot of people would say oh yeah, it may have to something to do with that, it also had something to come in and causing mischief lets bring in our editor of the week, good to have you bill. Jared kushner says he did not collude with the russians, is that going to put this to bed . Obviously not i was struck of his contact of his tone, he did not attack the committee or the news media. Maybe he learned a little bit watching his father. Listen to the democrat and their new better deal, right they want can antitrust zar. Have you heard this . After going through the federal trade commission and doj and they can get consummated the idea is this zar could undo those kinds deals. Schumer was complaining of the exxon mobile deal today. You hear these and you think these guys are still on the same antibusiness and bandwagon and back where we are. Look, while this creation is slowing down and innovation is slowing down and concentration of wealth. So you are siding with them no, but do you think there is no problem at all of google and facebook controlling 65 of the United States. Once the doj approves the merger after it is completelied . Yes, thats why the democrats dont have good governing agenda, either the economy is great and everything is perfect. Well go at the beginning of this hour. I am not sure that some of the concentrations though and slow down growth. The democrats have not done a good job of the alternative agenda they can get away for a while. Certainly by 2020, they had to think these through. You had administration of eight years with pretty strong folks looking at mergers and not blocking too many of them. I guess some of the one in the pharmaceutical business were impeded. They did not do much no, it was not too much it was sort of 20th century liberal economic policies and 20 Century Healthcare reform or obamacare of whatever you think of it. I think it is a new 21st century. It probably requires fresh thinking and especially on the texts. The silicon valley, they did not want people standing at all against facebook or google even though i think legitimate questions can be raised. Lets talk about Anthony Scarramucci in a tweet my guess is scarramucci will get higher marks from sean spicer and he will do damage to trump, what do you mean why . Hes so cocky and he has no experience in washington and he thinks his charm will take it away he will say things thatll regret it. Bill, sean spicer is a nice guy and probably put in a tough position but comparing scarramuccis performance on friday and verses of what we have seen from sean spicer, scarramucci was much better at handling them. Spicer is a disaster and scarramucci can be bad in a different way. The Economic Growth will be what it is and tax reform pass or will not pass. Trumps problem is not communication problem, his problem is the governing problem. Thank you, bill kristol bill puts the stake on the ground there we appreciate that here is whats coming up on power lunch. 200 Companies Reporting earnings this week, will it be a make or break week for the market or the rally . Speaking of earning alphabet well mention before it is out the bell tonight, could you get in ahead of the results and a bold call on blue apron and the analyst says the stop can rally 30 from here, all that and more coming up as we continue a second hour of power you are watching power lunch with Michelle Cabrera, melissa lee on cnbc. Welcome back as we kickoff our biggest season with bob pisani with more it is a mixed day, we are focused on earnings and had some big numbers. Some highlights here, santanley works came out and remember the tool business is really great. 70 of their sales, stocks are trading down here about 3 today. Here is whats interesting organic growth is specific and it is about 8 people are buying their products and volumes are up 9 . Here is what the problem is. Pressure on all of these sellers of goods to lower prices called the Amazon Effect or whatever you want to. People still have buying these stuff. Elsewhere, oils are up and Energy Stocks are down cutting the production further and thats helping oils. They had a good earning reports and north America Production is strong the ceo is talking about the fact that showing signs of going down tuesday reported on friday did not say the same thing finally, we are getting a big tobacco deal thats closing tonight, closing their deal and creating the Worlds Largest Tobacco Company by revenue and market share and that company, of course, coming out of the s p 500, replacing reynolds will be mgm reports. Back to you. Thank you very much. How long can the markets ignore whats going down in dc lets bring in our chief strategist with Jenny Montgomery scott and our adviser, kevin, let me start with you in one of your notes, we cut explosion in equities in a satellite portion of allocations of portfolios from over weight to neutral last week question one was why did you do it and what the hell does that mean you went from what percent to what percent we run a variety of portfolios the essence was that, it was the first cut of our equity exposure since 2014 and the two reasons for it was number one, the momentum of the Economic Data while it is good we know earnings are up and we know the comps are good and know growth rates are looking pretty good right now the trumps trade accelerated in 2013, it seems to be flatten out a little bit when you look at all the good news that we are seeing today, a lot of that is discounted to price because it is traded 18 times earnings which is a fairly rich multiples for s p for us, it is a reduction of a bu bullish over weight. What in terms of a percent does it mean you went from what roughly to what within the portion of portfolio, we would say taking from 60 equities to 50 of equities and the remainders being in bonds. Mark, how about you do you agree that things are looking a little highly priced right now . Where are you putting money to work and taking money away i do agree by way of evaluations and the u. S. By the way. We al vaccina europe and japan on a currency head pace. Back in the u. S. , we dont share that view, we are looking at the fundamental economics and they seem to be sturdy and the matter is if you look at the economic price index, it had fallen from about three months to a recent bottom which now started to turn because of why expectations have been washed out. Now we are seeing comparable Economic Data thats beating or at least matching its expectations and i think thatll resi rekindle stocks for the balance this year. Kevin to the extent that you have been taking money out of equities, where have you been putting it. It is been going to bonds and the portfolio, it is really been more of a still no change and we still been more with corporate credits over treasuries and we have been more of the middle part of the Treasury Curve the call here is not a particular bearish one it is one thats cautious to reflect on the changing momentum i think the economy is going to grow it is flatten out here a little bit after a period of acceleration kevin and mark, thank you very much, we appreciate your time thanks guys t the democrats are laying out a new economic platform in virginia, we are joined now with representative, congress jeffery. Thank you for coming on. Good afternoon, thank you for having me. I believe it was you that democrats are talking in fine prints do you think this is the agenda that democrats need to reframe the discussion ahead of 2018 and midterms we speak directly in a clear and compelling fashion to the American People who understand fundamentally that they deserve a better deal and jobs and future in the past for republicans speaking in headlines and we talk in fine prints. Thats important for the legislative process. Democrats are the party that delivers to the country. It takes fine print policy details in order to in terms of speaking to the American People of the problem, we want to confront and doing this in a forward fashion. It seems a little odd and when i heard senator schumer over the weekend of the example of exxon mobile, thats a deal that happened decades ago and here we are today with gas prices and oil prices extremely low. We take a look at any sort of gauge and inflation and it i extreme lily low and deflation how does that resonate with the American People if they do not feel the pinch and busting these trusts does not seem to be there. Well, wage stagnation is a major problem that we have to address in a variety of different ways including and making sure that we dont have monopolie monopolies over the last 40 years productivity of the American Workers have increased by more than 285 . During the same period of time, wages have increased by less than 10 so the productivity of the American Workers and in terms of its increase have not gone to the american worker. What monopolies have suppress wages . Excuse me, maam, what well take a look at in terms of monopolistic power where you can believer whats good for consumers. Monopoly power is terrible for consumers. Thats why antitrust exists and the sherman antitrust exists which monopoly needs to be busted now well, i am not going to look backward, i am going to look forward. What has been proposed is that we redefine the manner in which these merges allowed to proceed. These merges should not take place solely because they are in the best interests of the shareholder class. They should take place if they would promote the middle class americans as well as average everyday folks what we are saying is we need a new lends as and approach and so analysis putting towards as we move forward dont current law enforced by the trade commission have that apart of their calling and in other words, not just looking at it is good for the executives but whether it creates too much power in the hands of the other. Thats what they are there for. We always evaluate laws in the books to make sure they are working the way that it should and adapt of changes that are made in a swiftly changing economy. Many of us would take the position as senator schumer did allowing exxon, perhaps, not in the best interests regardless of the changes going up and down as it relates to gas prices this is a forward looking approach there are laws that need to be updated. Specifically in senator schumers, it is skyrocketing everything from capable bills and Airline Tickets. Costs are skyrocketing and we are not seeing it worn out right now at all when it comes to food and energy and Airline Tickets well, you know the people that i represent in brooklyn and the peel here do not take that position ta do believe that wages have not kept up with the rising cost of living with the rate of in fligs. Wages have not kept up with the as pir as representative thank you very much for joining us. I dont think time ago. We should reconsider that part of the democrats new economic agenda including the focus of lowering prescription prices, what it can mean for the biotech industry meg me mega meg is here with us with the story. Second the democrats plan would give medicare the power to negotiate on drug prices and prices on certain criteria would have to be justified by manufactures of the public shaming group. Democrats out lining their plans with senator mccaskill is sayin this of prices it is ridiculous, they are not budging on the notion that we ought to negotiate for lower prices trumps reactions . Investigators have heard this a few times before and many t tenants prosed by Hillary Clinton. The difference now of course, we have a republican president and republicans control both the house and senate they have not support the same policy around Prescription Drugs a at least hes supportive of medicare and negotiations. His bite is not existing and non issues according to an article of stat ton ne stat on news, all that is spending on federal lobby. You can see why they are trying thank you coming up on power lunch. Up more than 25 will tonights earnings keep the rally going . Plus, raise your glass, it is National Tequila day and sales in the u. S. Have been soinarg. A look inside the booze business, ahead. Hello everybody, i am sue herera Jared Kushner met with the Senate Committee behind closed doors this morning let me be clear, i did not collude with russia nor did i know anyone else in the campaign wo d who did so i have not relied on russian funds for my businesses. And i have been fully transparent and providing all requested information. Jc penney is accepting apple pay and making its credit card available on the mobile service so customers can accumulate reward points. The number of tablets being actively used is expected to decline for the first time this year larger smart phones are to blame. In addition, the Research Firm says the number of tablets are expected to drop 1 a year over the next five years. Thats the news update this hour, melissa, back to you thank you, sue herera a big week for tech burnings. Wynn resorts and exxerox and nasdaq is the biggest winners. The market is closing for the day. Lets check in with jennifer. More headlines coming out of the opec meeting to sort of influence these prices but not so much per se we did hear from the saudi arabia that theyre planning to cut their exports. Thats something that the markets are anticipating that country may cut another 200,0 200,000 barrels if all complies to the deal. It is not. We did not expect to see too much policy coming out of this meeting. It was more of a conversation and opportunity of some of the bigger players to talk to the players who are not necessarily complying. The bigger cuts are bigger right now. We are watching u. S. Production and wednesday well find out more what happens this week. It is been steadily on the rise and thats the wild card here. Blue apron has been taking a beating. The company is hitting a lot of loss a positive rating including Goldman Sachs and rbc. Hes joining us today from san francisco, mark, it is great to have you with us hello melissa were you apart of the under riding for blue apron . Oh, yes we were did that have anything to do with the association of early going . Oh, i hope not. I tried to be as independent as possible on these whether it is facebook in the past or twitter or blue apron today, just trying to call them as we see them. Ahead of the big lock up expiration, do you think thats going to be an event for this stock . Blue apron, whats interesting to me is the stocks set up here. I have not seen an ipo trade as poorly as this has coming out of the block. You know the set up here, you are talking about the one time sales the mark is saying the growth here is a teen and double digit grower and 10 or 20 . It cannot possibly reaccelerate. We think the company is putting in a bunch of initiatives and more changes of products and menu options and delivery options and theyre speeding up their delivery times as well. You put it together and reinvigorating the market spending we think well have reaks reacceleration in the growth the risk rewards is very intriguing was it unfairly taken to the wood shed on the back of the whole foods merger or did the under writer get the pricing wrong out of the gate . I dont know about the last question, people smarter than me can figure it out. There is two things came into stocks and traded right away the company was running at about 176 year over year ago and now it is at 17 thats a 90 reduction growth rate if you extrapolate from that, there is no way we can take the stock. The mark looks at that and for good reasons looking at the desell ra igde deacceleration. Yes, and amazon and whole foods is another issue and costs seem to be going up and they did not seem to be generating that much yeah, this comes down to how well they innovate this routine and innovating on the product. The industry today it is likely has been of the last couple of years and the Growth Prospect is not that great the question is do they integrate on the product and more convenience to consumers. There is a raw macro trend that people want to eat at home theres a raw macro trend among millennials. The concern that i have this maybe a bad neighborhood the meal kit industry. This is the best house in the neighborhood i the best satisfaction scores and the largest numbers of consumers. That does not mean they solve it but at least they got the head start. Quickly, you nailed a point thats been on my mind as a customer of one of these services it is a crowded neighborhood is my end game here a growth story with this name or an accusation of this name by some bigger player of a kroger or whoever or walmart if it is a substantial secular trend, there is reasonable to assume that there is strategic fires on this the company has to prove, if they can show they can reaccelerate the product, you are going to have more people looking at this, strategics and individual investors, thats the upside mark, stay with us, we want to tilt the conversation a little bit talking about google and Parent Company of central and our Rob Sanderson is joining in on our conversation whats the key metric . Website Revenue Growth and i think the set up expectations for both looks aprooefabchievab and expecting them reporting upside given the eu fine and the tweets and Search Engine that google might or a alphabe alphabet may have to make to ease regulators. Going forward and specifically what the remedies are for this and potential follow on, there maybe more exposure it is hard to get a sense of how much a potential can be slowed down if you slice it down, it is Something Like 400 bases point of exposure at the most and the slow down in the category would not be good but it is not devastating. Mark, theyre trying to go out of clad revenue just like anybody else is that the key focus. How are we going to know because they dont break out a lot of this stuff beyond the big search revenue that people hear about give me something of clouds or youtube or any revenues or profits coming out i dont think well get much beyond, you know, the qualitative data point on this european issue, i think it is a real, there is a lot of follow on risk associated with this the black swan is here and regulators are in and telling google to change their Search Engine so that it appeases us. If you do that, anybody coming in there, it does create an over hang and this thing could spread and making the margins a little more cost of google. This thing could spread within businesses of alphabet or str spreading into other sectors if they are going to impose on restrictions on comparison shopping, maybe google traveling. Rob and mark, thank you very much for your time, appreciate it it is National Tequila day sales are on the rise, what are the big trend thats happening right now. One of the biggest brands, avion is joining us. It is happy hour on power lunch starts in twominutes closet fee. E rr who is she, verizon . Are those my heels . Yeah yeah, were the same size. In shoes. With tmobile taxes and fees are already included, so you get four lines of unlimited for just 40 bucks each. The price we say is the price you pay. Welcome back to power lunch. Tequila business, so in honor of National Tequila day, who knew that how do i pronounce it president of tequila avion. Welcome and glad you are with us it is great to be here. Right now tequila growth is out pacing vodka about five times. This year is about 8 so far there is so much to man for tequila now and there is a shortage shortage there are for this one family and town but almost everybody in the business is struggling because the demand is significant and prices since we launched for our business have gone up 18 times. Why are people shifting, millennials, it would seem away from beer and towards spirits. Tequila is hot, brown goods are hot again. Completely. We are seeing in millennials and also through my age group, people got this sort of fatigue of drinking the same thing and they want some flavor and because the brown trends, you are seeing aged tequila. It is like you want to be social age in old cast. As we look at the bottle in front of us, tell me the difference and what the price points are and tell me silver, this is our avion silver and it won the worlds best it is pure and it is just spring water and still really small hand practice way and thats aged six months in old cast. And anejo is two years and talk about high end tequila how much is it retail 150. If you can find it right now. So 44 months and at the end of a small petite of this great flavors. Small supplies which is why i think Everyone Wants it. George clooney sells his brand for about a billion dollars. What does it make you think in terms of your exit and how much avion is now worth i am not sure it changes a value because thats awesome about a celebrity and one celebrity. When you this i of the middle age generation, my generation, it was not about celebrity the millennials is much more about providence and where something is from and how it is made and much less so about the celebrity itself the tequila of the next generation yes well, that sort of where it gone because of the single force and the wonderful family are more drinkers drinking tequila straight or sipping it as opposed to, i am assuming of the bulk of it is sold from margarita. Are more people drinking it straight and how can i be a better taster, i am telling you i am not sure if i can tell a difference well do that so, the sipping trend is really interesting margarita is still the number one cocktail in america but we are seeing much and more sipping men and women and also really popular right now, it sused to e vodka soda but it is tequila spritz of soda how many women like you are in the booze business . Definitely not enough we need more, it is something that we work to and making sure we get women in to the spirit. You are one of the cofounders yes, congratulations. We hope you get really rich here is to National Tequila day. Thank you very much, great to see you. The dollar is hitting a one year low today how much lower could it go from here President Trump is ready to speak about healthcare in just a few minutes right now. Hes taking aim on his own party on twitter today about the republicans not getting a deal done is he abt tn f e outourofth heat power lunch back in twomin e twominut twominutes. And in certain cases chronic flatulence. No sooooo gassy girl. So gassy. If youre boyz ii men, you make anything sound good. Its what you do. If you want to save 15 percent or more on car insurance, you switch to geico. Its what you do. Next next the dollar index is hitting a one year low today what does it mean for stocks mark, i will start with you because it is a big source of the dollar, we see the euro is practically at two years high and the nasdaq is having a big drop do you think thatll continue as euro strengths will continue the market is getting ahead of itself since europe i think hes over bought if you will i think the thing that i will point out to clients is despite of Fund Managers and analysts liking stocks, the s p 500 has done better about 400 points better, 4 point better than the dow jones stock. If this continues, i think well see people beginning to move back to the u. S. And afraid of missing returns. Oh, ari, what do you see in the charts we also see u. S. Out performing europe as and i i think whats happening between weakness in the dollar and strength and equities is really the key intermarket theme thats going on right now dollar trading off the perceived changes in global Monetary Policy and 2014 it was the divergent policy, a tighter fed and accommodative ecb causing the surge in the dollar, and thats really what caused a lot of disruptions underneath the surface when commodities collapse and breadth really narrowed now its going the other way as the ecb becomes less accommodative. The dollar depreciating, and we have this broadbased breakout in the u. S heres the chart im charting the euro against a percentage of stocks above their 200day moving average on the new york stock exchange. We can see as the euro was falling in 20142015, the number of stocks participating declining now as euro has stabilized and is breaking high. We can see participation starting to broaden as well, so i think bullish for Equity Investors specifically as marc said u. S. Investors, we like the u. S. Over europe trade as well. Ari, if i can ask you a more specific question about what is driving stocks here in the u. S that, of course, would be Technology Stocks since this is a very, very big week for the f. A. N. G. Stocks, facebook, amazon as well as alphabet all reporting this week and this on a day when the nasdaq is hitting a fresh record high. How do the charts on f. A. N. G. Look going into earnings season . The charts on f. A. N. G. And technology more broadly are still bullish. We see this as a secular theme its broadbased strength, not just f. A. N. G. But midcaps and small caps if were in a secular bull market which we think we are, we think tech is a prime candidate to lead the gains, potentially even over the coming years. Years, okay. Bullish trend. All right guys, thank you, ari wald and marc chandler. For more market inside go to tradingnation. Cnbc. Com President Trump tweeting about health care, tweeting up a store criticizing republicans for not getting a deal done. Our john harwood joins us now. John, what do you expect him to say . Is he going to be the guy who was in sort of chief salesman mode last week, i believe it was wednesday or thursday when he had the Senate Republicans over to the white house for a confab . Reporter i guess, but its hard to see this as anything other than going through the motions of the end of consideration of this senate bill i communicated with a strategist familiar with Mitch Mcconnells thinking and asked whether the bill has a chance of passing the senate the Senate Health care bill has a chance of passing in the senate or repeal for that matter and the answer was no, so i think they are going to have this procedural vote they are unlikely to get into consideration, and if they get it, unlikely to pass something, and i think what President Trump is trying to do, as well as members of the senate, is reassure their supporters and members of their base who have been hearing these promises to repeal and replace obamacare that they have done everything that they could to try to make that happen. It just doesnt seem like its likely to happen so, you expect them to go ahead with a vote even if they dont have the votes to win the vote yes. Why would he do that . Reporter because Mitch Mcconnell has indicated that the only way to bring a conclusion to this debate is to have people have their names up on the board as either yeses or nos. Put their feet to the fire, in other words. Stand up and be counted and then some people have dubbed this to show them a body strategy he could then say to republican supporters who have been seeking the repeal and replacement of obamacare. See, we tried. We had a vote. The votes werent there, and then they will either shellofthe issue for a while and go as mcconnell has indicated towards some sort of bipartisan negotiations with democrats for shoring up the weaknesses of some of the obamacare marketplaces, especially in some of the rural areas in the country where there arent many providers. John, its become very clear that President Trump is unhappy with attorney general Jeff Sessions what the about this talk of giuliani possibly getting that job . Could that possibly happen reporter i think its possible you cant say anything for President Trump isnt, but Rudy Giuliani has been quoted earlier today as saying hes not in contention for that job, and, secondly, that Jeff Sessions did the right thing by recusing himself from the russia investigation, and this is what President Trump has indicated inflamed him toward Jeff Sessions, that Jeff Sessions hadnt protected him, and, you know, tyler started out by saying that the president had been tweeting about republicans needing to pass repeal and replacement for obamacare. Hes also tweeted that republicans are not protecting their president , and thats another challenge that he faces. Okay. Got it, john john harwood as we await the live pictures there. Dont move because check, please is next. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. A Double Bottom is a chart pat everyone that suggests a downtrend may be ending and ready to reverse sometimes called a w formation because it looks like a w, a Double Bottom occurs when prices norm two distinct lows on a chart at around the same level traders often view a bak oref the highest high in the formation as a bullish signal. Check, please. After the bell today alphabet earnings come out. The forecast is 8. 36 a share. Thats actually down from where they were last year. One reason is the accounting for a Large European Union fine of nearly 3 billion to show up in those numbers. Another sort of thing will be interesting to see what they say, if anything, about ultimately breaking out youtubes performance as a part of their results. Mine is a nonstock check, please give credit to access for finding out within the white house what did they do when they were referring to one another. They have come up with emojis that are representative so Anthony Scaramucci has an emoji they use when they are texting about him. The kiss to make reference to the kiss that he gave to the press on friday, but gary cohn who they refer to, some of them, not positively as globalist gary, they use a globe and Reince Priebus is apparently only a reindeer because its rein. Well have our own emojis here at the desk. We spoke to mark haney over at rbc about apron being underweight. Eight of 12 underwriters recommend buying the shares and only two have come out and come out and said equal weight, too, so thats very rare. All the underwriters like it. 10 was the number it floated at. Which would say that his bank had done the right the correct job in pricing it. I guess so. Forget about that. All right. Thanks for watching power lunch. Dont forget. Big event with donald trump, the president coming up talking about health care. You dont want to move closing bell starts right now. Hi, everybody happy monday and welcome to closing bell. Tgim, im Bill Griffeth and were kicking off whats going to be the heaviest week of earnings this quarter. About an hour from now well get the results from alphabet, the second of the so call f. A. N. G. Stocks, even though those thats the g in f. A. N. G. Got the n last week. Thats coming up in a bit. Dunkirk which you saw. I saw most of it. Ill explain later it did sweep the box office and imax raked in nearly a quarter of the films domestic gross box office