Transcripts For CNBC Squawk Alley 20170306

Out its new plan, but for now we can tell you it looks like this second crack at this white house at this immigration executive order is going to focus on six countries, not the seven they initially focused on. Theyll take iraq off the list. This white house very much believes that its first crack at the immigration executive order was legal and proper and well handled. That said, the courts stepped in to block some of it so theyre taking another chance at it today. Well wait until 11 30 to get the details. One focus will be on whether or not the white house can do this without provoking the chaos and confusion we saw at airports around the country as officials struggled to figure out who was allowed in the countries and who was not. Theyve had time now to process this and get the information to all the people at the airport so we expect theyll be giving us the full details in half an hour. Dont go too far. Well come back to you for more on that. The impact and risks to the rally as they stand now, lets bring in wells fargo global strategist. Youve been saying the market was a bit of ahead itself on expectations. Is this the beginning of a turn or not. For a long time weve been looking for the s p to hit its target. Its come a couple of months earlier than what we anticipated. I think well probably take another run higher, but for us the big thing, the second half head winds are going to be little inflation in 2018 over wages, maybe the fed being behind the curve. I think net net, were going to be 2230 and 2330 at the end of this year. Its going to work out to a mid single digit type of return if you look at a total return. Nothing to panic about. I dont think the cycle is over. This could be more of a stall year compared to last year. You said you feel like the new administration is going to have very little to do with what happens to the economy in 2017. It will have more of an impact on years out. Do you think the market is pricing that expectation in of no big impact in 2017 the same way you are, or is that something we have to reckon with in the coming weeks . I think the markets done a great job of not pricing in too much of what might and could happen. We would argue that the stock market finished the year at what we would consider fair value and we were biased it finished in our target range. Our target range is barely higher less than 2 . I would make the argument that until really about two weeks ago, the market was trading at fair value based on the fundamentals that are in place for 2017 as we saw them. But this last little run higher over the last couple of weeks, i think theres some people starting to chase it a little. Theres a little bit of pricing in of what might and could happen. These valuations arent stretching it and we would argue theres not much of a trump premium built into stocks at this level and certainly a few percent below this. Beacon policy advisor managing partner joins us this morning. Good morning. Good morning. We are expecting perhaps a view of the aca repeal draft out of the house. If we get that, i wonder if you think investors start to say to themselves the legislative wheels are turning slowly as it may be, but that means that maybe taxes are not that much further off. Does that encourage the market . I think it will initially, but the aca repeal process is going to be the most challenging one for the white house. Its the biggest political priority, but its also the biggest political challenge. From our perspective at beacon weve been telling clients since soon after the election that tax reform is really much more of a second half of 2017 story. Steven, what seems like an eternity ago you suggested that paul ryan has chased a couple of big policy unicorns, one of which was comprehensive tax reform and the other entitlement reform and you thought that wasnt going to happen if Hillary Clinton was elected president , but now it seems the Trump Administration is pushing back on the idea of entitlement reform. Will that have a Market Impact . How do you see it now . I dont see entitlement reform reform being in play. Once they can move past dealing with the aca, the biggest stimulus move out of the legislative branch will be tax reform. The other piece that i think is critical for the market that maybe a lot of pundits are underestimating, its the certainty there will be no new regulations coming out of the left field after eight years of dealing with that. The issues that i think the market are perhaps overestimating is when we talk about infrastructure, legislation or significantly increased defense spending. You have to separate the fiscal stimulus measures that are likely and the ones that the market is overestimating based on the rhetoric. To that point let me pin you on down on a couple of sectors. I see copper is at the lowest since late february or maybe its health care or tech with the snap enthusiasm. To the degree your targets come into play for the year end, where is the strength going to be. For us, i think were going to be lower than we are right now at year end, we just backed off technology. We had been overweight for a while, but we continue to like industrials. We like financials and the consumer dish kreshary sector. We like health care. I think the pricing worries there are overblown. Pharmas good and managed health care. Those are two groups we like in there. Even though the market might be lower at year end, i think those are the ones. You want to lean toward the sectors that are still sensitive to the economy overall. You dont want to be defensive because i dont think the cycles over. Based on our work 2018 offered some upside promise that would maybe be more significant than what were going to see in 2017. Thank you very much. Well talk to you later. When we come back, its a first for snap, that would be a down day on wall street to the tune of 8 . Shares of the company are called ridiculously valued. Later the rollout of the president s new immigration order that sparked that controversy six weeks ago, well bring it to you live, that hearing scheduled at 11 30 a. M. Eastern. When ou have 4. 95. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. But who you invest with. And her new mobile wedding business. Tte at first, getting paid was tough. Until she got quickbooks. Now she sends invoices, sees when theyve been viewed andtadahpaid twice as fast for free. Visit quickbooksdotcom. It might be the biggest bear case for snap. The stock is called ridiculously valued adding the stock price could be cut in half. Analysts initiating an underperforming rating. The stock down almost 8 a few moments ago. Good morning. Good morning. Weve had you on in advance of the ipo and youve been complimentary of the company. I think theres worry about the stock price. I think as i said before it depends on whether it can get the revenue going in a facebooklike fashion or does it struggle in a twitterlike fashion. Thats where the concerns are. Theres a lot of bullishness around it. A lot of people like the product and its a question of how they perform Going Forward with their revenue targets and advertising and other businesses and thats where it will shake out. People are worried about that issue. What do you think is the most important metric to look at when it comes to snap because their whole argument has been dont look at overall user growth. We dont care about users in far flung places that dont have ad market. They call themselves a Camera Company because if theyre making money off advertising its not the creators who we need to be concerned about, its the people that are viewing. What number are you watching to gauge the health of this company . I think their revenue. I think the revenue. If they can monnaties these users. Theyre not like a gopro. I think people use their cameras to communicate and use it as a Communications Tool and fo therefore attract users. So when needum says even if snap grows revenue eightfold by 2019, the share price would decline. What do you mean when you say get revenue going . Well, i think its one of these people feel as if anything could happen at this company. They could do anything at all. Someone this weekend after all times after they went public said now i guess theyll be bought, someone pretty high up, and i hadnt thought of that, that it could be grabbed by any of these companies now that it has a specific value on it. I think the issue is how do you get a piece of that Advertising Market in a market thats dominated almost completely by facebook and google . How do you get a thing in edge wise. It doesnt mean someone cant do that, but i think these valuations are lofty and theyll have to grow into it in some fashion and i think a lot of these people having worries is the right thing to be worried about. Obviously another rough week for uber. Some new reports looking to hire a second in command to help make decisions. There is a report of a growing number of employees exploring a way to leave the company. You have seen a week for that company before like the one we had last week . Theyve got a lot of things to come out. Bonuses happen on march 15th and ive been getting emails from employees talking about leaving after they get bonuses. I think theres still a lot of shoes to fall around how they deal with their culture, especially around Sexual Harassment and sexism. Theyll probably add a female board member. There has been talk about a number two. Its not quite as far along as that, but at the same time how do you put some strictures in place around the ceo and thats being discussed by everybody there. How bad does it have to be, though, for employees to think about leaving uber after snap goes public, has this huge pop, uber is one of probably just two other companies that are seen as being in that league, uber and airbnb. You have the svp engineers leaving after a piece you wrote and then vp of product also leaving and then they were chewing out an uber driver that is the Strategic Asset that they supposedly want . Are things that really that bad . We wrote those stories and then people leave. I dont think people leave if things are that good. They didnt leave on their own volition necessarily. I think they have to figure out how theyre going to keep those talented people. Those are two big jobs at that company. So thats going to be a question of how do they fill those jobs . Who goes in those places . Thats one issue. The other issue is how do they at the same time fix that culture that results in these behaviors and how do they keep it to be a place where people want to work. I get a lot of emails about uber right now and im not surprised, but all of them describe the same kind of toxic culture that has not aggressive culture. I think thats more of the problem than anything else is the aggression is out of control and the question is can they bring it into control. Culture is one thing, but you have others suggesting that maybe they change their global strategy, maybe they graduate to something where they play in more regions of the world as opposed to every country. Do you think Something Like that is likely . They have pulled back in china when it didnt make sense and it was a nice deal for them to get out of there and stop spending money there and at the same time get a piece of the market. I dont think theyre going to be in every market. I think its more who is in the leadership of this company and how are they going to lead it into this ipo. I think right now theres no chance they could possibly ipo with the leadership they have there. Theyve got to really strengthen it. People keep comparing it to Sheryl Sandberg coming to facebook. Mark zuckerberg is very different. Is this a twitter level problem that they have, the kind of poisonous board Room Atmosphere that twitter had that seemed to keep them from focusing . No. I dont think they have a big enough board. Its very weighted towards uber people. Thats a problem. They have to bring in more outside Board Members and be willing to take suggestions. These people have had a lot of success and a lot of times you dont want to take suggestions. Were doing great so what. Unfortunately this has been a long time thing thats been simmering at this company and the question is they cant lose for executives. If you see more departures, its going to beproblematic for them. They have to replace these people. They have two interim people in place, but its not enough. They need a strong team of people that likes to be there. Right now from the emails im getting people dont like to be there. Youre not suggesting they cant go to ipo with travis as the head of the company . No. I dont know. I dont know. I think not right now obviously, right now would be a disaster. They have to bring in more executives that seem to create a better working environment and a better leadership. I think they know that. This is not something thats new to them. I think travis knows that from what i can tell from people who have talked to him. I think he does understand he needs help. He said it publicly he needs help. The question is what kind of help is he going to get and who is it going to be . I im going to have a piece on the names of the people they have talked to help them. Its hard to figure out. I cant off the top of my head think of the names of people that they could bring in, but theres a number of people that could help them. Well see. Thank you. Well see you soon. Thanks. Still to come, as weve been discussing, the bears showing their teeth as snap makes a sharp move lower, about 6. 5 . What does the ipo mean for the larger market and what names should we watch next . Well cover that when we come right back. Oh. Not the smooch method come on. 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. Welcome back. Snap seeing a 44 surge on its first day of trading, but today the company seeing a selloff, almost 7 . Will snaps early success open the door for more tech unicorns to go public. Kathleen, welcome. I think the etf has seen a 30 gain since the beginning of the year. Is that over now . Weve gotten snap. Are there any other big names on the horizon to watch. There are big names and we can talk about that, but this last year of returns on the ipo market were needed because the end of 2015 were poor returns and that closed down the ipo market at the beginning of 2016. And once the market opened up, investors had been very despite snap, but very price sensitive and the deals that have been done have been done at reasonable valuations and thats produced that strong return. The question is is snap going to be the one that we start to think about internet bubble when we think snap. I dont think so. I think we have a ways to go. What gives you that confidence . Weve seen the history of how it goes. If you take put snap into the equation, the average ipo has been priced below the mid point of the range and the returns have been positive, both from the ipo and also for post ipo investors. We think that there still is a lot of Price Sensitivity in the market and snap may be an opening for other unicorns and there are some i can talk about, but i would say there are many other ipos that are being done at fairly reasonable levels. Drop some names. Its important to note the next unicorn on the calendar called mule soft. Its an Enterprise Software company. It was 1. 5 billion. Its going to go try to go public at 1. 8 billion. High growth, but not making money. Investors are going to take a good look at this and well see if that continues the strong trend of what has been the concern investors have had about how high the valuations have been in the private market and the public investors havent been willing to look at those. Are people or at least retail giving a premium to names that have a consumer interface like a snap or uber or airbnb. That certainly is the case quite frequently. I would mention another important ipo on the calendar. Canada goose is going to be pricing next week. A down parka maker. I hope they get that deal done before the spring. Thanks for being with us. When we come back this morning, obviously a live shot of washington there. The white house unveiling an updated immigration and travel order. Squawk alley is back after a break. 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 good morning once again. Here is your cnbc news update. European foreign Union Ministers joining up for the start of the Foreign Affairs Council Meeting in brussels. Its set to improve military training missions. Former penn state football coach Jerry Sandusky has been moved to a medium security facility in pennsylvania. No reason was given. Hes serving 30 to 60 years in prison for his 2012 conviction for charges he molested several boys. Another snowstorm hitting Higher Elevations in california. A chinese made underwater glider has broken the deep sea diving world record by going down more than 20,000 feet below sea level. I will send it back downtown to you guys. Thank you very much. A cording to nbc news the president has signed the revised immigration executive order on travel from six predominantly muslim nations. We are awaiting comments from Homeland Security. We are outside the white house watching this for a sense of what we might expect over the next few minutes. Reporter good morning. The president signing that executive order off camera. That gives you a sense of some of the stage craft that this white house is trying to do as they roll this out. They dont want the images of president out there. What they want is these images of these other Administration Officials talking about this new executive order. We have details here of the executive order that are coming off embargo right now. Let me give you a couple of the details that we know. This includes six of the seven originally mentioned countries. The one country theyve taken off this list is iraq and thats because Administration Officials say the Iraqi Government has been very cooperative with them in getting the information need to do the screening they feel is appropriate for people coming from that country. This is going to be effective on march 16th and theres a 90day period of time that starts on that date. It does not revoke currently valid visas and theres no distinction made for Syrian Refugees versus refugees from other countries and all refugee admissions will be halted for 120 days. It doesnt apply to green card holders as well. On a call this morning officials at the white house and some agencies said that theyve been able to work much more closely together government wide than they did back on january 27th when they did the first roll out of this executive order. Therefore they expect that people at airports and in front line positions will be well briefed on what to expect here once this goes into place on march 16th. Thats the rollout here from the white house. Well see what these Administration Officials have to say as well. Were told they are not expected to take any questions, although you can imagine some of the reporters in the room will certainly try to shout out one or two questions at them. A question, has the Administration Given any detail on what the Iraqi Government did to clarify, give more information that satisfied the administration, and whether the other six countries on the list were afforded the same opportunity to give more information that would make the administration comfortable with the people who would be coming into the country . Reporter no, on the Conference Call this morning all they said was the Iraqi Government has been very cooperative in terms of providing the information they need to vet and screen immigrants coming in from that country. Theyre saying these other six countries, people coming in from those countries tend to overstay their visas in dispore portion nat numbers. In is not a muslim ban. This is an effort to limit immigration from countries where they feel there is a heightened threat. Dont go too far. Joining us on the phone this morning, former assistant attorney secretary of state. What stands out to you . Well, i think this is the comparison to the first rollout. The first rollout seemed to provoke a sense there was a lot of administrative unintended consequences. With iraq we had military intervention in iraq where many iraqis cast their lot with the american soldiers, took huge risks and are now being blocked from coming to the United States after essentially being promised that we would be there for them. So i think that i dont for a fact that that played into it, but because you had senior military people saying we cant do this to our allies, that may have had a role. I think the question here is whether is how this plays out. There are a number of administrative initiatives that are listed by the white house that theres going to be new standards established and an analysis of security risks and new resources are being discussed, countrybycountry reviews and reports every 120 days, this kind of thing, entry exit system. Theres a lot of policy being rolled out here. The question is is this going to cause more personal stories to hit the media about family members and skilled workers like doctors, technology experts, academics who are needed here, investors who are pro u. S. Who have no connection to terrorism. It could look like a policy sort of a Public Affairs slam at the muslim world for political reasons or will it be a serious policy. Ambassador, how important is it that we get more detail and what exactly iraq was able to do in terms of providing more information to get themselves off this list . It seems that the argument has fundamentally changed. The initial argument was these seven countries were on a different list than the Obama Administration had, that they are inherently a problem because theyre not providing certain information. Now that one country is off the list, the lawyers who are arguing that the Trump Administration had not completely made its case about what exactly was the concern about these travelers, it seems to be a question again. Look, the white house has to operate on two levels. Im not sure im not a lawyer, but im not sure they will satisfy the precise questions of the lawyers. I think we have to wait and see what secretary kelly, secretary tillerson have to say about this. My sense is you also have to when theres a huge cry because translators who served with u. S. Military units now cant find asylum in the United States and theyre being chased down by hostile malitias inside iraq and they want their families to be proeblg protected, thats a big story. That certainly had to have motivated the white house to look at iraq and say, you know, on balance, we probably need to work with them to find a way not to have them on the list. What was actually done . Thats a good question for secretary tillerson i think what was done. I hope there was some engagement, but i also feel that our military will look at this and be satisfied that the white house heard what they said, that you cant leave your allies in the field. Mr. Kboambassador, is any of this colored by the allegations by the president over the weekend . Obviously the story last week regarding the attorney general, how much does that move how this is accepted . Well, there are other people who are probably more likely to talk about how to manage stories in the media. As someone who has served in the pentagon and the white house and the state department in the past, i want to see my government at work. If this is a legitimate policy, i want to give them a chance to make their case and see how it plays out. If you find out there are a lot of children and family members and humanitarian cases getting caught in the policy unfairly, that will certainly be seen. If this turns out to be perceived overseas as an antimuslim policy that could effect our ability to engage with allies and overcome extremismi extremism. We have to see how it plays out, but you wont hear me complain about the United States government to work and doing important work. Well see how well have to judge the quality of this effort by what we see in the coming weeks. Certainly well begin doing that in a few moments once this briefing begins. We hope youll stick around, mr. Ambassador. The dows down 80 points. We come back early to the secretary of state. The executive order signed by the president earlier today, protecting the nation from foreign terrorist entry into the United States is a vital measure for strengthening our National Security. It is the president s solemn duty to protect the American People and with this order President Trump is exercising his rightful authority to keep our people safe. As threats to our security continue to sevolve and change, common sense dictates we reassess the systems we rely on to protect our country. While no system is completely infalable, the American People can have high confidence we are identifying ways to improve the vetting process and keep terrorists from entering our country. To our allies and partners around the world, please understand this order is part of our ongoing efforts to remove vulnerabili vulnerabilities. The state department will work with agencies and implement these restrictions in an orderly manner. Our embassies will play an Important Role in making sure our nation is as secure as it can be. The state department will implement the provisions in this order that allows for the admissions to refugees when they do not pose a risk to the security or welfare of the United States. Upon the president s initial executive order issued on january 27th, the state departments Diplomatic Security offices immediately undertook a review in coordination with the department of Homeland Security to identify additional measures that would strengthen our vetting of those seeking entry into the United States from seven named countries. These early efforts were concentrated on iraq. Iraq is an important ally in the fight to defeat isis. With their brave soldiers fighting in close coordination with americas men and women in uniform. This intense review over the past month identified multiple security measures that the state department and the government of iraq will be implementing to achieve our shared objective of preventing those with criminal or terroristic intent from reaching the United States. I want to express my appreciation to the Prime Minister of iraq for his positive engagement and support for implementing these actions. The United States welcomes this kind of Close Corporation with countries in every region of the world who share our commitment to National Security. This revised ordinarier will bo the security of the United States and her allies. We spent the morning briefing the congress, the press and we will continue to talk with Key Stakeholders this afternoon. Experts from the department of Homeland Security, the department of justice and the state department hosted an hourlong call with the media on this topic this morning. Our collective teams will continue throughout the day to follow up with the congress, the media and stakeholders to answer your questions. Ill now turn it to the attorney general for his comments. Thank you, mr. Secretary. Good morning to all of you. One of the justice departments Top Priorities is to protect the United States from threats to our National Security. Therefore i want to discuss two points. First, the National Security ba basis of this order and second the department of justices role in defending the lawful orders of the president of the United States. First, as President Trump noted in his address to congress the majority of people convicted in our courts for terrorism related offenses since 9 11 came here from iran. We know that many people seeking to support or commit terrorist acts will try to enter through our refugee program. In fact, today more than 300 people, according to the fbi, who came here as refugees are under an fbi investigation today for potential terrorism related activities. Like every nation, the United States has a right to control who enters our country and to keep out those who would do us harm. This executive order seeks to protect the American People, as well as lawful immigrants, by putting in place an enhanced screening and vetting process for visitors from six countries. Three of these nations are state sponsors of terrorism. The other three have served as safe havens for terrorist countries, countries where governments have lost control of their territory to terrorist groups like isil or al qaeda and its affiliates. This increases the risk that people that are admitted here from these countries may belong to terrorist groups or may have been radicalized by them. We cannot compromise our nations security by allowing visitors entry when their own governments are unable or unwilling to provide the information we need to vet them responsibly or when those governments actively support terrorism. This executive order responsibly provides a needed pause so we can carefully review how we scrutinize people coming here from these countries of concern. Second, the department of justice believes that this executive order, just as the First Executive order, is a lawful and proper exercise of president ial authority. This department of justice will defend and enforce lawful orders of the president consistent with the core principals of our constitution. The executive is empowered under the constitution and by congress to make National Security judgments and to enforce our immigration policies in order to safeguard the american public. Terrorism is clearly a danger for america and our people. The president gets briefings on these dangers and emerging threats on a regular basis. The federal investigative agencies, the intelligence community, the department of state, the department of Homeland Security and the United States military report to the president. Knowing the president would best possess such extensive information, our founders wisely gave the exaecutive branch the authority and duty to protect this nation. This executive order is a proper exercise of that power. Now i will turn things over to our able secretary john kelly of the department of Homeland Security. John. Thank you, mr. Attorney general. Like the secretary of state and the attorney general, i welcome you here today. My comments will be relatively brief. Last week the department of Homeland Security celebrated its 14th anniversary first opening its doors on march 2003. This was established in response to the devastating attacks of september 11th when Foreign Terrorists turned a beautiful but ordinary day into a nightmare. Those attacks taught us we could not take our nations security for granted and we need to overcome our ability to connect the dots of intelligence and arrange them into a more comprehensive picture to the threats posed to america. Much has changed over the past 14 years both in a world that is more dangerous and at dhs which is much better. We are not immune to terrorist threats and our enemies use our freedoms and generosities against us. Todays executive order will make america more secure and address long overdue concerns about the security of our immigration system. We must undertake a review of our immigration vetting programs to increase our confidence in the decisions we make relative to visitors and immigrants that travel to the United States. We cannot risk the prospect of ma levant actors using our immigration system in taking our lives. This executive order focuses on the entry of nationals from six countries. Its important to note that nothing in this executive order effects existing lawful residents or persons with current authorization to enter our homeland. Unregulated, unvetted travel is not a universal privilege, especially when National Security is at stake. The white house worked closely with the department of Homeland Security, the department of justice and the department of the state to create an order that addresses previous concerns and protects the homeland and every one of our citizens. The men and women of the department of Homeland Security, like their brothers and sisters throughout law enforcement, are decent men and women of character and conscious. They are no less so than the governors of our states and territories, of our senators and members of congress, of our city mayors and various add kro kasy groups. These men and women are sworn to uphold the laws as passed by congress and would be in violation of the law if they do not do so. We do not make the law, but are sworn to enforce it. We have no other option. We are going to work closely to implement and enforce it humanly and respectfully and are professionalism but we will enforce the law. I want to thank the president for his leadership on this issue and for his steadfast support for our important law enforcement, security, and Counter Terrorism mission. Again, as previously mentioned i have spent much of the day today on the phone with members of congress, the leadership, explaining the ins and outs of this e. O. And i did the same thing last week. So there should be no surprises whether its in the media or on capitol hill. Thanks very much. Thanks for your time. Is this an acknowledgement that the first order was flawed in many ways and not well thought through . Mr. Attorney general, have you spoke to fbi director comey today . Are christians still given priority under the executive order for review . All righty. There you have it. That Homeland Security secretary kelly along with the secretary of state attorney general Jeff Sessions with a revised e. O. , temporarily halting entry for those seeking new visas from six muslim majority countries affective march 16th. A more deliberate rollout this time . The secretary of state arguing that allies should be understanding and of course a fullthroated defense of the president and what theyre calling his executive power. Yeah. Thats right, carl. The white house here very much saying that their previous executive order was lawful and proper but, none the less, they are issuing this new one taking into consideration some of the concerns that were raised about the first one. So one of the things that you heard secretary kelly say there was that nothing here affecting existing lawful residents or people coming in with current authorizations. So that means that this wont be disruptive of those people who are currently in transit or have current authorization to travel to the United States. And then as you point out, you heard that pitch there from secretary tillerson talking about the allies of the United States, particularly iraq which is fighting side by side with americans against isis right now. That was very much an appeal to those allies to say, look, we have to do this to tighten up security in terms of terrorism but this is not meant to be offensive to you in any way and were working with the government of iraq to make sure that we can get the information that we need as the United States to bring people from that country in. So thats why iraq has been eliminated from this list of seven which is now six countries, carl. Eamon, thank you. On the phone, former assistant secretary of state ambassador lincoln bloomfield, chairman emeritus at the lincoln center. The attorney general, you said, the government getting to work, really pushing the idea of existing intelligence and refugees under investigation for terror in this country right now, numbering in the hundreds. Well, thats right. I have to say weve been following the news cycle for days and days. The story line is more about politics and about washington i infighting than about Foreign Policy and the work of government. You just heard three senior officials laying out a fairly orderly rollout of a policy that the first time it came out there were a lot of questions raised. This is the second this is the new improved version. And as i said before, i think we have to see how it plays out. But one way that it could play out better is if indeed they bring more process, more tools faster processing and ability not only to say no to people but a faster and more reliable ability to say yes to people, that would be welcome. I sat in the morning Staff Meetings for secretary of state colin powell after 9 11 and i have to tell you it was really hard to get good people from certain countries into the United States because they couldnt get the databases matched up. Homeland security was brand new as secretary kelly talked about how much better theyve gotten now. You had Counter Terrorism and fbi and cia data files. And you had the state department trying to figure out ambassador . Yeah. How are foreign governments likely to receive this in contrast to the previous executive order . Is this likely to be seen as fundamentally. Different outside of the boundaries of the United States . Well, its hard to speak for outsiders. Some may say, look, theyre just basically doubling down on sort of muslim countries. And so there will be people who will try to take advantage of this and say that theres a certain singling out of the muslim world unfairly. The question is whether, you know, by having a 90day stoppage of visas from six countries are you creating such a much bigger haystack and how many needles are really in that haystack. I think thats going to be the final question. But if, as i say, so there may be some questioning of this, whether its the right countries, whether its the right reason, whether theres terrorists really coming here from those countries. People will pick that apart. But if this is an opportunity both to get our senior officials on the field running their own policies and secondly to give them more resources and tools, we could end up actually improving the ability to have muslim people who want to come and invest, who have families here, who have business here, go to school here, become doctors and surgeons, technology, you know, that could actually turn out well if you let tillerson and kelly do their job and give them more resources. This could actually improve the ability to pick separate the weak from the chaff. And help those countries, you know, pick the winners and separate out the bad guys and who doesnt want that . That is surely the point. Thank you so much for helping us through the half hour. Appreciate it very much. Ambassador lincoln bloomfield. Take a quick break. Dow is down 81. Uh, yeah. Its over, larry. What is . 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. Welcome back. Reaction to the executive order out of the white house. John harwood is in washington. John, your thoughts . A couple of things. First of all, on the potential legal challenge, the vulnerability has been diminished by administration by eliminating the preference for religious minorities. That is one of the pieces of evidence for the fact that this was aimed at muslims. The second is that by removing the applicability to americans who are already here or have visa or legal permission to be here, they limit the number of people who have standing to go after this. Secondly, on the question you asked before the break about the president s tweets over the weekend, the credibility of an american president is an ini have disi believe asset. As the administration tries to persuade the American People that they have information that tells them that danger is justified this executive order, that makes is more difficult if people believe the president less and its true not just on this but also on issues like taxes or health care as well. John, we appreciate that very much. Of course as were just gathering facts and opinions with the new eo. The roll out not until the 16th president lets see what the afternoon brings. Lets get over to scott wapner and the half. Welcome to the halftime report. Im scott wapner. Top trade this hour, the state of the trump rally and why some of the smartest money on the street is now bracing for a selloff. With us for the hour today joe terranova, jim weiss, josh brown, jim lebenthal. Also jim cramer, host of the cnbcs mad money and from toronto is kevin oleary, chairman of o shares etfs. Stocks are lower today. All s p sectors in the in the red. Now the real question is over how much longer