We will reduce your taxes. We will cut your regulations. We will support our police. We will defend our flag. We will rebuild our military. We will take care of our great, great veterans. Were taking care of our veterans. [ applause ] we will fix our broken and embarrassing trade deals that are no good, none of them. You wonder, where did the people come from that negotiated these deals . Where did they come from . Well, they came also from campaign contributions, i must be honest with you. Theyre not as stupid as you think. We will cut wasteful spending. We will promote our values. We will rebuild our inner cities. We will bring back our jobs and our dreams. So true. So true. And by the way, we will protect our second amendment. [ cheers and applause ] you know, wayne and chris are here from the nra, and they didnt have that on the list. Its lucky i thought about it. But we will, indeed. And theyre great people. And by the way, they love our country. They love our country. The nra has been a great supporter. They love our country. The forgotten men and women of america will be forgotten no longer. That is the heart of this new movement and the future of the Republican Party. People came to vote, and these people, the media, they said, where are they coming from . Whats going on here . These are hardworking, great, great americans. These are unbelievable people who have not been treated fairly. Hillary called them deplorable. Theyre not deplorable. [ crowd booing ] [ crowd chanting lock her up ] who would have thought that a word was going to play so badly . Thats the problem in politics, one wrong word, and its over. She also said irredeemable, but we wont mention that. The gop will be from now on the party also of the american worker. You know, we havent been as a group given credit for this, but if you look at how much bigger our party has gotten during this cycle, during the early days when we had 17 people running the primaries. Millions and millions of people were joining. Now, i wont say it was because of me, but it was, okay . And we have an amazing, strong, powerful party that truly does want to see america be great again, and it will see it, and its going to see it a lot sooner than you think, believe me, a lot sooner than you think. We will not answer to donors or lobbyists or special interests, but we will serve the citizens of the United States of america, believe me. Global cooperation, dealing with other countries, getting along with other countries, is good. Its very important. But there is no such thing as a global anthem, a global currency, or a global flag. This is the United States of america that im representing. Im not representing the globe. Im representing your country. [ cheers and applause ] there is one allegiance that unites us all, and that is to america. America. The allegiance to america. No matter our background or income or geography, were all citizens of this blessed land. And no matter our color or the blood, the color of the blood we bleed, its the same red blood of great, great patriots. Remember, great patriots. We all salute with pride the same american flag, and we all are equal, totally equal in the eyes of almighty god. Were equal. Thank you. And i want to thank, by the way, the evangelical community, the christian community. Communities of faith. Rabbis and priests and pastors, ministers. Because the support for me was a record, as you know, not only in terms of numbers of people, but percentages of those numbers that voted for trump. So, i want to thank you folks. That was amazing. An amazing outpouring. And i will not disappoint you. As long as we have faith in each other and trust in god, then there is no goal at all beyond our reach. There is no dream too large, no task too great. We are americans, and the future belongs to us. The future belongs to all of you. And america is coming about and its coming back, and its roaring, and you can hear it. Its going to be bigger and better. It is going to be it is going to be remember and its roaring its going to be bigger and better and stronger than ever before. I want to thank you and madam mercedes, i want to thank the two of you and all the supporters i have. They are all over the place. You are really great people. I want to thank you. And i want to say to you, god bless you and god bless the United States of america. Thank you, folks. Thank you. Thank you. [ cheers and applause ] that is the president at cpac. An enthusiastic crowd, obviously. A muscular speech. The room to capacity, hitting all the notes were familiar with criticism of the media, legislative priorities, including tax cuts, deregulation, the repeal of obamacare, military buildup, in the president s words, the era of empty talk is over. Market largely unchanged since he began speaking, slightly off the lows. Bond yields have lowered a little bit, although within some sectors perking up on mentions of the border wall, which the president said was way, way, way ahead of schedule. A lot to unpack here. Kayla tausches at cpac. Kayla . Reporter well, carl it was an incredibly loud room, on their feet most of the time the president was talking. Two particular moments that the crowd leapt up, and the first was when he started talking about tax reform, the second when he started talking about deregulation. Those are two linchpins for this conservative movement that started this conference so many years ago. He did hit all of those familiar refrains that you mentioned criticism of the media, saying that Anonymous Sources should not be used in journalism, despite the fact that his white house has just given a background briefing with no attribution there. So an interesting note that some people here were scratching their head about, but he did get some cheers from the audience here. He talked about trade. He talked about the fact that theyre not going to do these what he called quagmire deals anymore, where the United States is part of a dozen or so countries that all enter into the same deal. He said the deals are going to be one on one, and if the other country goes against the terms that it will give the u. S. The ability to pull out of that deal. He did say that the wall is going to happen. People were chanting build the wall. People were chanting lock her up at various moments. People were chanting usa. And he did say that that was on schedule and said that he has completed the most actions before taking office of any preside president , that he has been a president of action, but certainly a lot of talk today, carl, about Obamacare Repeal and replace, about this massive tax reform that is at some point going to come down the pike, and about all of the deregulation that is coming to business. Kayla, of course, he put a coda to some of the meetings that weve seen earlier in the week. He at one point discussed the strategy and the intent behind that meeting with manufacturing ceos. Take a quick listen to what the president said. In anticipation of these and other changes, jobs are already starting to pour back into our country. You see that. In fact, i think i did more than any other prepresident. They say president elect. President elect is meeting with ford, hes meeting with chrysler, hes meeting with General Motors i just wanted to save a little time. Pumlitzerprize winning columnist is joining us along with jon fortt. Jim, convincing . Well, hes certainly in his element in this environment. At the same time, if you want an illustration of a divided america, well, you just saw one half of that divide. I couldnt help but think that he immediately hits on the wall, on the immigration, probably the single most divisive issue on the entire plank. Thats number one, and he hammers away on that. Number two, the medias the enemy. Very striking to me. He barely mentioned the democrats. It used to be the republicans and democrats were the ones, you know, combating, and the media was kind of in the middle. No, its now the media is the enemy. Thats, again, that is a very controversial notion. Its also very divisive. So, he was clearly whipping up the base here, and they were responding fervently. I mean, you can recognize the passion in that crowd, but there is a whole other side of the population that i think would be, to put it mildly, cool to much of what he said. You know, and to your point, jim, about mentioning the wall, mentioning getting tough on immigration and getting, you know, criminal aliens out of the country. If you look down at the list of policy notes that he struck, taxes pretty far down there. It really was about trade agreements. Its the Campaign Themes of getting our fair share on the trade front, getting jobs back here, deregulation, a little bit on infrastructure, but not as much about a tax break, which would normally be kind of the standard line i think for this crowd in past years. So i dont know if we want to infer too much about that, along with Steve Bannons comments yesterday to the same group that basically were all about economic nationalism and about trade relationships. Well, and to read his quote im not representing the globe, im representing your country. Theres one allegiance that unites us all. That is allegiance to america. You could almost hear bannons presentation from yesterday as he referred to economic nationalism, john. Yeah, absolutely. And jim, im wondering your thoughts. There was a narrative in the past around american exceptionalism that everybody in the world wants to be an american deep down. We are leading the globe as america into democracy, into freemarket capitalism, and eventually, everybodys going to want to come along. The narrative seems to have shifted somewhat, or maybe dramatically, in this trump era, where hes saying we dont have good deals. Were going to have good deals. Were going to win. Its more of a zero sum game. Were going get certain people out of the country. You talked about the divisiveness that you heard in tone, but is there Something Else happening here just around american exceptionalism and how thats changing and implications for business . Well, i totally agree. I mean, i think the whole notion of what are these American Values he said were going to bring back American Values, but exactly what values is he talking about . Take the America First idea. Yes, i think, yes, everybody whos an american wants to do whats best for america, but does that mean you turn your back on the globe . Can you represent america effectively, in fact, maybe most effectively while also recognizing that we are part of a global community, and in fact, the economy is more global today than it ever has been in americas history . I think the symbolism of the wall that we can somehow, you know, build this, exclude everyone, turn our backs on this, and that america will be greater as a result of that is a theme that runs through all of this. I think thats highly questionable. I dont know that thats realistic. By the way, again, it strikes me, its almost amusing to some extent, that almost everything he says is an exaggeration. Its bigger, its better, its going to be better, its kind of exciting to hear that somewhat, but i dont think it is really realistic. On deregulation, for the markets purposes, he did try to point to regulations that hes in favor of. Yes. Tried to argue that hes in favor of protecting the environment and american workers. This is what he said on regs. Were going to put the regulation industry out of work and out of business. And by the way, i want regulation. I want to protect our environment. I want regulations for safety. I want all of the regulations that we need, and i want them to be so strong and so tough. But we dont need 75 of the repetitive, horrible regulations that hurt companies, hurt jobs. Kayla tausche, you can draw a line from that comment to what mnuchin said a couple of days ago, specifically to the journal, that getting to 3 growth could be a function of doing away with some of those obamaera policies. Reporter it could be, but carl, there is also a sense that deregulation is perhaps the carrot, tax reform is the carrot, and then the pressure to move these jobs back or to use american materials is the stick in this scenario. The president talked about in this speech about meeting with executives about the keystone xl pipeline, and when he heard the steel for that was coming from all over, he said nope, thats not going to happen. He talked about the Republican Party becoming the party of the american worker, about those manufacturing ceos bringing jobs back to the u. S. , but there is a lingering question from attendees this morning about what sort of incentives government is going to have to offer all these companies on the back end to actually follow through and comply with some of these requests. You know, one last thing, jim. One thing we didnt hear as much was discussion of innovation, research, education, for sure, right, of the american worker, preparing us for future eras. Did you notice that at all . I dont think there was a word about education in there. And in terms of certainly technology innovation, jon, you might want to comment on this, but you know, Silicon Valley is not the audience here, and they are not on board with this lets turn our back on the rest of the world. I mean, they are very successful because they have innovated, they have led the world, and they are selling their products globally, and they are hiring highly qualified workers from the rest of the world. They are adamantly opposed to this closing ourselves off agenda. Technology ceos, as we heard from Satya Nadella yesterday, actually have sort of a counter narrative, saying something different, trying not to contradict the president , but talking about the entire globe being important, American Values spread, a little bit more of the perhaps older message of exceptionalism we were talking about. Yeah, i think part of that was america wanted to lead by example and we wanted to export our values, our economic model, democracy and capitalism, throughout the world and that we would prosper as a result of that. And i find it hard to believe that trump really wants to turn his back on that. Jim, thank you for coming in. Sure. We normally talk about your column, but it was good to have you here to wrap around the president s speech. Jim stewart of the New York Times. Dows still down 48. S p down about 4. Clearly off the lows of earlier in the morning. Well talk about what the afternoon may bring after a break. When you have 7. 95 online u. S. Equity trades, you realize the smartest investing idea isnt just what you invest in, but who you invest with. Isnt just what you invest in, but who you invest with. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. 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We are going to massively lower taxes on the middle class, reduce taxes on american business, and make our tax code more simple and much more fair for everyone, including the people and the business. President trump speaking about tax and regulatory reform. Markets, of course, a big topic this week with secretary mnuchin talking to us yesterday on where he sees policy going and the president s comments to reuters last night. Christian rometti joins us, Oppenheimer Funds chief investment officer, James Paulsen also. Good morning to you. Good morning. Jim, you heard the president s speech, im assuming, a few moments ago. Anything to strengthen the pro growth argument weve gotten from the white house . Well, i always think the two biggest pieces for wall street, at least, carl, is just the show of less regulations and ultimately some form of a tax cut. I think the rest of it becomes more problematic for wall street. I think, for example, a massive Infrastructure Spending program could be looked at as inflationary, at a full employed economy, and getting into health care seems like could be gridlock and a whole lot of other things. I think the two most important things for wall street is less regulation, which were seeing some show of, and a tax cut, hopefully some time this year. Christian, its always hard to try to attribute what the moves are based on, what the motivation of investors is in terms of taking stocks, for example, up to this level. But i wonder if kind of you had the economic story line perfectly cooperating with, you know, a rally in stocks, and then seeing policy as a potential benefit down the road, or if there was policy uncertainty, most of the uncertaintys skewed in a positive direction. Where are we at now in the equation at these levels . I think the markets are very much discounting the synchronized Global Recovery that we are seeing. In addition, the markets are also discounting the uplift in earnings that we are getting off of that. What we need for the markets to get to the next level is real, solid policy. And trump and his colleagues are talking about it, but we havent really seen anything. And the likelihood of that is going down by the day based on the ka calfny of all of the things you hear from the policymakers. And i think for the markets, thats really the biggest risk. And let me kind take the other side of the argument that the gentleman was making, which is, in my book, what we really need is an increase in Business Investment for this recovery cycle to go to the next level. And without an expansion of the fiscal base, that is, unless we see significantly higher level of deficit, the likelihood that that happens is pretty small. So, thats really in my mind the acid test. Even if you get tax reform and the fed tightens and the dollar goes up, the impact of that on earnings and growth is actually not going to be that significant. What we need is a fiscal expansion. What we need is deficit spending. And it doesnt look like we are going to get it today. Well, james, we dont talk so much about deficits anymore, it seems. At least we dont hear as much about it out of meetings like cpac, but what were talking about, reducing revenues by cutting taxes, were talking about spending more, Infrastructure Spending, and theres the expectation that growth will come up and sort of cover a multitude of sins. What if that doesnt happen on the schedule thats expected . What do you expect the market fallout to be and how soon . I really think that the market is much, much less dependent upon trump policies than people have made it out to be. I really think this is more about the synchronization of Global Economic growth, the broadest evidence of recovery hitting more corners of the globe than ever before, a pickup in u. S. And foreign growth, a pickup in recharge of the earnings cycle, a show of world, being able to create inflation, moving away from Global Deflation risk, a normalization of Economic Policy in the United States. There is a cocktail of really wonderful stuff that i think is whats driving this market. And to tell you the truth, whether trump gets anything done or not, as long as that economic and earnings momentum keeps up, thats the air under trumps magic carpet. And as long as that keeps up, i think trump can be teflon. He can say and do what he wants or not do, and as long as theres those other factors at play, i think the markets going to continue to go up. And i think thats why the confusion is, with all the washington volatility, why hasnt it affected wall street . Right. I think because the economic and earnings momentum is just too darn good. All right. Guys, weve got to cut it short to get to europes close. Krishna, thank you for coming in. James, always good to see you. When we come back, a rough week for uber, as you probably know. Alphabet suing the ridehailing giant. One week until snap goes public. Loop ventures gene munsters going to join us. And well talk about president , trade, and the business of nascar with racing legend roger penske. Whats going on here . You know how Ge Technology allows us to fix problems before they. They slow production, yeah. Well, no more catchy business acronyms. Wait, we dont need to smooch . Im sure we can smooch a solution we just need to hover over the candice, problem until. Just let it go. Hey, sorry im late for team building. Smoooooooch that felt right. Whats wrong with you . Hes so trusting. Ive got a nice long life ahead. Big plans. 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And which aarp Medicare Supplement plan might be best for you. Theres a wide range to choose from. We love to travel and theres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Jcpenney reporting earnings this morning. Our Courtney Reagan spoke with the companys ceo moments ago, joins us now to share some of that conversation. Hi, courtney. Good morning to you, mike. Marvin ellison was one of the retail ceos that met with President Trump and members of congress to discuss tax reform, specifically the border tax, last week, and ellison told me that President Trump listened, he asked questions, we posed questions back to him, but he didnt give us any indication about where he stood on the proposals. The retail ceos also included members of congress, including representative kevin brady. And ellison said when it comes to them and where they stood there is no straw poll that has been done, but were pleased with the questions being asked and the high degree of concern about the impact on consumers. Ellison said in all the meetings, questions were asked, and he believes there are still lots of options on the table. This is not a foregone conclusion that this legislation will be passed. Now, when it comes to closing up to 14 of its stores, ellison explained that the timing was based on several factors. We had a very underdeveloped omnichannel strategy when i came in. It was hard for me to understand how many stores we needed until we began to roll out buy online, pick up in store. It would be reckless to close stores without that in place first. Ellison also said he purposefully lined up the timing of the closures with the voluntary early Retirement Plan across the company, which he anticipates even after those store closures will result in jcpenney hiring more for the positions of those that take that retirement package. Back over to you. All right. Thank you very much, Courtney Reagan. What a story today. Lets get to Contessa Brewer for a news update. Carl, this is whats happening right now. Turkish media report the car bomb north of town just captured from isis by Turkish Forces killed at least 35 people, including civilians and Syrian Opposition fighters. The syrians put the death toll at 45. The car bomb hit outside a security office. Malaysian police are investigating how two women received a nerve agent which was then allegedly smeared on the face of the half brother of north Korean Leader kim jongun. The investigators surmise it was a massive amount because small amounts of the chemical are difficult to detect. Supreme Court JusticeRuth Bader Ginsburg says she doesnt plan to retire from the court any time soon. She appeared on a bbc broadcast last night, saying she plans to serve as long as she can. And this may be the biggest welcome mat ever and the most personalized. Colorado rancher plowed 800footlong letters reading trump in his land. He says he was frustrated by all the negativity coming from the president s opponents. He also said if trump happens to see that sign while flying overhead, well, come on down stop by the ranch. Thats our cnbc news update for this hour. Wont he be surprised if that happens . Jon. Yeah, its one way to get your message across. Thanks, contessa. Still to come on squawk alley, we talk trump, trade, and the business of nascar with racing legend roger penske. Well be right back. Whats the value of capital . Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back. A rough week for uber. Alphabets selfdriving car unit wamo accusing it of stealing lidar technology. This is after ubers ceo, Travis Kalanick, said hes launching an urgent investigation into allegations of harassment and gender bias, hiring eric holder to lead the probe. Arianna huffington, the board member, in on that as well. Mike isaac, the New York Times tech reporter, and gene munster, founder of loop ventures. Good morning to both of you. Mike, you wrote a story earlier this week about ubers culture that was really pretty unsparing in some of the detail. And since then, buzzfeed got some audio of about 100 female engineers really taking Travis Kalanick to task over the culture at the company. How serious is this for ubers quick expansion . Because theyve been very much about grow at all costs, protect the people inside who are aggressive, even if they break a few eggs along the way. I think this is probably one of the most brutal periods for the company that ive ever seen, just according to people that im talking to inside. If youll remember, a few weeks ago they had a real backlash where people were deleting the app. Hundreds of thousands of people where deleting the app en masse. But this is a little bit different because its really a crisis of conscience internally for people that they have never had to go through. I think a lot of the employees that i spoke to, part of them thought, okay, yeah, this is the uber i know very well, and then many of them were aghast that Sexual Harassment or claims of a guy threatening to get his head beat in with a baseball bat from his manager, that kind of shocked a lot of people. So, i think they are in this sort of existential moment where theyre asking themselves, is our culture too crazy, and do we need to find another way to grow without, you know, looking insane in the meantime . Gene, you are an investor at this point and youve certainly looked at things from the perspective of publicmarket investors. How much should investors, both present and future, worry about these kinds of reports about a companys culture . Investors probably shouldnt worry. These are unfortunate and really inexcusable things that are going on. But at the end of the day, is that ubers culture is not going to change. And the reason is that culture is dangerous to change. It can be changed, but it is dangerous. What got uber to where theyre at today is this intense culture, and their vision is to have transportation is as accessible as running water. And to continue that vision, youd have to and to impact the culture is something thats dangerous. So, as an investor, i would like to see the people that actually did this being held accountable, but i wouldnt want to see the culture changed, as crazy as that might sound. What about the wamo lawsuit, though, when it goes to intellectual property . How important is that the piece for their future . I dont know the details of the lawsuit. I know that there is a history of these relationships. If you look at google and oracle over java, apple and samsung, this seems to be along the same thread. It is safe to say is that autonomy is this next incredible wave thats going to come over transportation. My guess is it probably sets auto, which is ubers selfdriving, back a year. Mike, that would be quite a response to all of this, quite a rebuttal, if what gene said, if uber were to say this is an isolated incident, were taking care of it, but we remain committed to the aggressive culture we have. Yeah, i mean, i actually do agree with gene in that its very difficult to change culture in a company, especially when the founder, Travis Kalanick, has really espoused a lot of this hobbsian environment of kill or be killed internally, a lot of competition. So its hard to change that dna from the top. That said, obviously, you cant have hr ignoring claims of Sexual Harassment, and you know, crazy stuff like that, so theyre going to have to make some crackdowns in that sense. I do think that the wamo stuff is pretty existential as well because these are pretty serious ip claims. And you know, uber has not responded yet. But the stuff in there is it says Anthony Levin dowsky, auto ceo, went through outright theft. So, im curious to how uber responds when they lobby something back. Yeah, i believe the claim is that on a company laptop, he downloaded special software, downloaded 9. 7 gigabytes worth of wamos trade secrets and then attached a hard drive. So, well see how that plays out in court. Gene, mike, thanks for joining us today. Thank you. Thanks for having me. When we come back, more on the pause in the rally were seeing this morning. Dows down about 60 points. Coming up next week, of course, well be all over snaps ipo plans, talk about the preps that the nyses doing this weekend, when squawk alley continues. Im scott wapner. Today on the halftime report, one of our traders thinks a correction to the trump rally could hit the markets next week. How hes getting ready today. Plus, noted short seller andrew left making moves today. Hell join us to tell us what they are. And the call on Goldman Sachs that may shake up the financials trade. Halftime report top of the hour. Carl, see you at noon eastern. Thanks, scott. Lets get to Rick Santelli and get the Santelli Exchange at the cme. Rick . Thanks, carl. Id like to rem my guest, rob nichols. Rob, thanks for taking the time today. Rick, thanks for including me im excited to be here. All right, listen, you know, many might not know that the Federal Reserve is owned by private investors, and those private investors are in the form of banks, and they get shares, they can never sell them. But there is a dividend thats been associated with them for over 100 years, 6 dividend. But that all changed. Its a weird story with transportation and all the changes kicked in january 1st of this year. Tell us about it and tell us what you think about it. Well, rick, ill tell you. So, about a year ago, congress, to pay for roads and bridges and mind you, infrastructures very important in the United States, we need to improve it, so were not antiinfrastructure but they took, rick, 17 billion from 72 banks in the United States of america in the form of that big haircut to pay for roads and bridges in the form of the fast act about one year ago. We tried, rick, to get a legislative remedy. We tried to reverse it in congress. We were unable to. So, the fact that were pursuing a lawsuit against the United States of america, its something we do very soberly. This is not something that we would leap to, but its an important principle, and every other recourse, sadly, was unavailable, so we pursued litigation, rick, about a week and a half ago in the u. S. Court of federal claims to attempt to reverse this. We think its illegal, and were very excited about the prospect ahead. Its an important principle, because we think it was an illegal taking. Yes, and i believe if youre now a bank the size of 10 billion or larger, and youre a member of this quote unquote club, you now get the smallest of two rates. You either get 6 or the auction rate of a 10year note, is that not correct, rob . Thats right. And we think that the act that congress pursued, rick, was illegal. Were pursuing a couple of different claims, and were looking to the courts to sort that out. Again, infrastructure is critically important. We all know that. You know that. Your viewers know that. But having one specific small sector within one private Industry Group to pay for roads and bridges we, frankly, just think is illegal. All right, listen, we have to be on time here. In 30 seconds, you know, big banks versus little banks, barrier to entry, all the compliance. As that gets rolled back, im hearing more of the biggest banks in the country say, hey, we dont really have that many problems with dodd frank. Is it because theyre a little nervous about the competition of the Smaller Banks . Quickly your answer, sir. Heres what i think. There are a handful of the large banks who are not seeking regulatory reform. Youve heard them on your own air. However, theres 5,900 other banks where the policys trickling downhill and getting in the way of serving their clients and communities. In particular for the 5,900 Community Banks in the nation, there are a number of changes, regulatory changes and some legislative changes in the form of modifications to dodd frank that we think are critically important to help this economy grow at a greater clip. Rob, thank you very much. Great answer. And now were going to go back to carl quintanilla. Thank you, sir. Thanks, rick. Rick santelli. Thank you so much. Good to see you, rob. 2017 nascar cup series kicks off sunday with the famed daytona 500. As the new season kicks off, the popularity of the sport in question as viewership and admissions on the decline. Joining us to talk about the state of the big race and the state of stock car racing is racing legend roger penske, the chairman of the penske corporation. Roger, its good to have you back. Welcome. Well, carl, thank you. Its great to be here. Weve got great weather here down in florida for the big race coming on sunday. Its going to be a big one. I was curious. We mentioned the popularity of motorsports. The journal this week tried to argue that nascars seeing some decline. Im assuming you dont buy that. Well, ill tell you, carl, i was the chairman of the super bowl in 2006 in detroit, and we had 70,000 people. And you think about nascar, every weekend we have more than the super bowl brings every single weekend 38 times. And i would say when you pack and load the social media around this sport and the connection to the drivers and the teams and the activation we have, i think were in the best shape ever. We Just Announced a new sevenyear partnership with shell pennzoil today and joe gibbs announced fedex yesterday. So, companies that scrutinize the marketing aspects of this and the returns are saying this is a great place to be. So, mr. Penske, looking at what brian france was saying about the state of nascar, he argues that streaming technology, the fact that people are consuming so much on mobile, the demand for peoples time is part of the reason for these declines in in attendance. Is there something that you think needs to happen maybe with technology in nascar that could boost the numbers even beyond what youre talking about . Well, i think that, you know, theyve really had some Ground Breaking decisions. I think this year with the new format with the call it quarters in football where well have a yellow and the drivers get points for competing up to those particular time frames within the race will make a big difference. But the connection that nascar has done with the fan into the car, sitting behind the wheel with the driver and things like that are making a big difference. Reh remember, there are so many options of the young people today of the sport. To me when i think of nfl and i listen to the numbers they might be down in attendance but the overall impact of the sport is still there. I think youve got two sides of that. We see the sport stronger than its ever been from a competitive standpoint. There are more sponsors knocking on our desk and i see the same thing. The problem is we built these big tracks with 160 or 170,000 seats and ability to bring fans in i think theres a downsizing going there and i think people are taking that the wrong way. Roger, got to get your take on politics and trade. We just heard from the president a few moments ago at cpac. Are you loving this pro growth policy . How is it changing the way you do business . I would say, you know, were in the transportation business, as you know, in the automotive business. We operate in the uk and brexit, quite honestly right now has not impacted us yet. Were watching that. Western europe seems to be good. United states, 17 million vehicles. Border taxes, we really dont know how thats going to impact was because youve got to think about whats going to be the depreciation, whats going to be the individual income tax, corporate taxes, and things like that. I think theres a myriad of things that will make a difference as we go forward. But to me our business is good. We had a record year last year. 21 billion in our automobile business. We see another great year coming at us. And theres no question with a new models coming out its going to be key. But i think that were certainly behind progrowth. Our stock is at alltime highs over the last three or four months. So from a business perspective, i see it very positive. Now, you know, obviously we live in a world of risk and uncertainty and i think thats one of the things that we always have to consider as we make decisions. Not personally but also in our business. What do you make of people who are predicting the rise of the machines, automation, completely revolutionizing at least commercial trucks . I love it because, as you know we have 244,000 trucks running on the highway. And if we get more utilization because we dont have to have drivers in the mobility comes in to play a factor there, we have the relationship with technicians. We have some 3,000 locations that we can mobilize. So to me its right in to our sweet spot in our business. I think youre going to see a lot of things happening in the trucking business. You know, where maybe the front truck has a driver the last two has been falling that because of technology. And to me thats where we need to go. This is a Ground Breaking time for us in the industry. We need to utilize our trucks 24 hours a day, 7 days a week. Quite honestly with labor laws the driver can only drive so many hours. Thats going to make a big difference. With our foot print we think were in a perfect position to take advantage of it. This mobility i think is terrific. Roger, i wish we had half an hour or more with you but we will be watching on sunday. Its good to see you again. Thanks. Yeah, watch 22 and 2. Roger penske of automotive and of course the daytona 500 is sunday on fox. Mike . Well, up next, amazon and the osz ke oscars. A look at content spending wars, coming up after this. Why do so many businesses rely on the u. S. Postal service . Because when they ship with us, their business becomes our business. Thats why we make more ecommerce deliveries to homes than anyone else in the country. Here, there, everywhere. United States Postal Service priority you uh, yeah. What is . R, larry. The whole wheelie thing. What do you mean . I just got this baby to get around the plant floor. Right, but now Ge Technology monitors every machine. Yeah, it brings massive amounts of information right to you. So you dont need that. Well, it makes me look young and uh. With it. Time to move on. Oh ill move on. Right into the future. Backwards. Youre going backwards. The futures all around us not just on your little tablet, my friend. Oscaring are coming up on sunday night. Its not just hollywood movie studios getting ready, its also a potential landmark night for amazon. Julia boorstin is on the red carpet. Julia . Hey, carl, we found a piece of red carpet here. The best picture win would be the biggest hollywood honor and amazon is the first ever streaming Video Company to be nominated, giving it more street cred. In addition to best picture manchester by the sea has five other nominations includesing best director, best actor, best screenplay. Amazon bought the film for 10 million at last years sundance film festival. Now grossed 60 million. Oscar nods have catapulted it past netflix, 13th, was nominated for best documentary. One of five best doc nominations for netflix over the past three years. Amazon is a threat not just the netflix but the hollywood system. Raising the bar of how much both netflix and traditional studios have to pay for films and tv series. Last month amazon out bid them on number of sundance films writing them the biggest checks in the festivals history, 12 million. Amazon spending on movies is minute compared to the total 6 billion jeffries projects amazon will spend on content this year. Etailor isnt so focused on Box Office Returns but on drawing subscribers to its prime service. Guys, back over to you. Were going to see what happens on sunday, julia. Thank you very much. Meanwhile, were just about a week from snaps ipo. Nyse plans to test its systems this weekend to avoid glitches similar to that. Shocks facebooks ipo on the nas in 2012. I remember that day sitting in facebooks parking lot. Hopefully nothing like that happens this time. Im going to try to tie it together. The importance of l. A. And content to Silicon Valley right now. Snap of course is based in l. A. Its duncan tent arguably better than anybody else over the past couple of years. Facebook has been chasing them with whatsapp and with instagram. And then amazon spending all this money on content. I remember when Silicon Valley was allergic to content after microsoft and nbc got together with something that different look so great at first. Everyone is drawing the comparison between facebook and twitter and their idea user generated content, all free. You dont have to worry about that professional produced stuff. Is not enough. Its interesting. I wonder where snap is in Economic Life cycle. Facebook waited too long. It was already very strong financially. Going for 100 billion market cap. Twitter may be too im what sure. I dont know about this one. Were going to find out a lot more how the market receives it coming up next week. The tenyear, fiveweek low, mike, got down to 31 i think i looked back. The s p was about 2300 last time, ten year was here. Not a lockstep relationship but sending you a signal maybe theres at least a pause in the cyclical trade. Good weekend, everybody. Lets get over to the judge and the half. Carl, thanks. Welcome to the halftime report. Im scott wapner. Top trade this hour. Markets big moent. Stocks up 3 in february. With the dow setting a record close for the tenth straight day. Longest streak since 1987. So why then is one of our experts saying a correction could be in the cards as early as next week . With us for the hour today stephanie link, Jim Lebenthal and the brothers najarian and kate morris at blackrock. Lets begin with stocks. They are pulling back today. Prediction of what might happen next. I dont know, doc, youre the one who think