Transcripts For CNBC Power Lunch 20180122

Stocks near their session highs. 1, 2, 3 all, and its really in the bond markety yields are, yes, soaring today much the twoyear note, highest levels, five years at its highest level since 2010, and the tenyear at its highest level since july of 2014 at 2. 65 meantime ge going the other way, down below 16, lowest levels since december, theyre moving the etf that mimics them, hitting a new multiyear high more on the m a that is fueling this group thats ahead brian . Thank you, tyler. Another rough day for bitcoin, it is down nearly 7 , more what is fueling that slide and where the cryptos go from here the imf raising its Global Growth thanks in part the agency expecting the world some i to grow 3. 9 this year that was up from previous estimates. More proof perhaps that the death of retail has been greatly exaggerated. Shares of teen retailer abercrombie and fich soaring after it raised its outlook. We begin with the government shutdo shutdown a key vote in the senate expected shortly Kayla Tausche, and eamon, and ylan mui is here first to, kayla, the vote was 8118 with a significant portion of the democratics conference on board. Here is Chuck Schumer describing the deal he said his brokered with Senate Majority leader mish mcconnell. The republican leader and i have come to an arrange. To continue negotiating a global agreement request the commitment that if an agreement isnt reached by february the 8th, the senate will immediately proceed to consideration of legislation dealing with daca. But newt ra and in the senate unfolding beyond the state of the union. Democrats have previously been pushing for a couple days of funding to fin talks over immigration, but it does set up a very concentrated, on legislation, so we could very well be revisiting the conversation again on the house side, a vote is expected later this afternoon. The House Republican conference passed this without any democratic votes last week, so that could be the scenario we see it repeat itself today, but that immigration debate is going to heat up when the policies begin taking more shape as these bipartisan, bicameral talks get back under way once the government is refunded guys kayla, thank you. President trump on twitter this morning blaming the democrats for the shut down. Eamon javers is at the white house. Reporter no formal response yet. They will have here momentarily not sure whether well hear from the he hasnt said anything on camera on this at all today well wait and see whether we see that maybe after the house vote, for now, no official comment from the white house one of the questions that will be asked of the press secretary is whether or not the president will be going to davos this week he was scheduled to leave late wednesday, and we dont know if that is still on some of the planning and logistic may have been impacted by the Government Shutdown not clear if they can get that trip up and running again in the short time remaining. Thank you, eamon when will the government get back to work theres a big from the 800 thousands, assuming that the house does pass this deal and the president signs it, the omb director will have to send a memo to all agencies telling them to reopen the Trump Administration tells me that should all be happening in time for the government to reopen tomorrow morning for business as usual. Now, we did see a few stragglers, working for the epas thats one of the few agencies that has remained open as well as the Natural History museum across the street, but federal workers know that their time here could be limited. They could be facing a shutdown once more three weeks from now d. C. Has become all too familiar with this game, guys we have seen it repeatedly. Joining us is mike murphy. Hello. Anything done in the next three weeks . Were going to have another showdown we do golf by the perils of paul even when we tie something to the railroad tracks, and then scramble to get to it. I think both sides will claim a victory. And the republicans can say they won. But in essence its a punt, theyre just buying time in theory republicans control every house of congress, so in theory this shouldnt happen, and yet President Trumps been pretty good about the messaging about whats at stake here, considering either side. Do you think either side cuffed in any way or what my guess is that its bad for anybody in washington, because yet again more dysfunction as you say, the republicans own everything, so maybe theyll get some blame i think the biggest risk for the but President Trump is so unpopular, record levels of unpopularity that as a known villain, he may catch more hell for this people may blame him for bad westerly i dont think theres any political winners here now the democrats get a vote on an issue thats very big in the Midterm Election and they get to prosecute that and make fork the republicans in a corner. I think by november nobody will remember that the government was shut for three days over the weekend . January. Be that as it may, i wonder what you think of the stock markets reaction or more pointedly nonreaction to any of this in fact right now the major indexes are at record highs. Is the reason this Government Shutdown didnt matter to invest offs that, a, we have seen it all before, or b, that the debt ceiling wasnt balled up in this somehow, and if you get that complication in, it really start to mart. I think i agree with what you said before, having the immigration issues could help the democrats. To your question, i think its a mix of thing im a Value Investor i see a market thats forgotten about risk we could have north korean tanking spinning around in iowa, and it may not slow the market down you dont think thats a bit of an exaggeration . I get the joke youre trying to make profits are up what the markets want, the markets got. Theres not much more they need at this point. On the policy side, the markets are happy. They get the regular torrie repeal but overall, i think theres this fun case, we have an extremely happy market that doesnt seem that oriented to gee oy political or other political risk. It hasnt been for years it seems. Thank you, mike. Thank you, guys. The attention is turning back to the economy, specifically the impact of tax reform, and for more on this, bring in paychecks ceo, its been fluid hours, it looks like the shutdown is done for now, so lets focus elsewhere. Tax relate heres my question pretty much everyone is getting a 2 tax cut is paychex ready i think were up and running, ready to go. I think most and i think, you know, Small Businesses in particular, about 50 are feeling good about tax reform. Are people frustrated are they confused . I dont think theyre i think theyre waiting to see what it means in their paycheck. Thats the most important thing from an employee perspective theyre just glad its going to happen and anxious to see, will it really bring them something on that point, jimmy papadoukis had some great stats the vast majority of americans think they wont get a tax cut, but the vast majority are seeing a tax cut. Not only in the lower tax withholdings, but also, you know, 50 of the Small Businesses feel like theyre going to benefit from tax reform two thirds of those businesses are going to do something for their employees as you have, whether its wage increases, bonuses, 401 k changes. I think employees are anxious to see what its going to mean from them, and theyll hear about it in the next few weeks i would think. Do employees need to do anything as i underis it w4 is basically you identified your exemptions and exemptions dont exist now. Right, but the table that have been released pretty much you can leave everything the way it is. Right now, it seems you dont have to do anything as an employees. The i. R. S. Will be coming out with a calculator that will help you determine if you feel like youre withholding the right tam of tax, i think in midfebruary, but generally the employees dont have to do anything. Do you get a sense yourself to whether paychecks will actually go up overall. Well, yeah, we definitely feel like they will, because the reductions in those tax breaks will affect most employees, so we definitely feel like everyone will see an increase, will it be enough of an increase to matter to most employees . I think we have to wait and see on that, but the other piece is the actions that many businesses are taking so not only you will see more in your paycheck, but hopefully see some wage increases, a bonus, a 401 k changes a lot of businesses are making a positive impact. Stock up 21 in the past six months. Marty, a pleasure to have you on power lunch. Thank you. Thanks, brian. The markets dont seem too worried about a Government Shutdown what are the markets focused on instead . We have that when power lunch continues. Jd power did just ram highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Stocks shrugging off is the shutdown lets bring . Hans and abe i read this note saying they were estimating 13, that is a positive impact from tax and only about 40 to 60 is currently reflected in that. Which would imply that theres still a lot more up side where do you stand on that in terms of how much we have Seen Incorporated in the benefit of tax. We were global and international specialists, so take everything i have to say with that in anyone. As far as we can tell, theres clearly a discounting effect as everyone knows i think for us, were looking at valuations here versus nonu. S. Stocks after a tenyear underperformance, we find International Equities understood to be morium valued regardless of the tact impact. Hans, do you feel the same way . I feel like the consensus trades is to so i valuations are getting concerns to go international. I think that the idea that places are lacking the u. S. On where it sits on the Business Cycle is correct probably europe is behind us by about 12 to 18 months. The focus is on earnings in the u. S. , and the earnings with respect to the tax reform coming through, you know, the Earnings Growth went from about 12 up to 18 this year well, i think, if you look at where the earnings are expected to come, the greatest comps are coming in energy and materials i think from a larger perspective we would be pivoting to what should you be doing outside has been this consistent inflationary or mindset thread. That seemsing to more in the rearview mirror, i agree it would be late cycle, probably is a place to be, you know, keeping in mind weve got from defcon one to infrontline Condition One to maybe defcon 3 in europe. As youre talking yields are hitting a threeyear high. Twoyear yields in the United States are greater than the dividend yeels on the s p 500. Thats a gigantic gap in europe and japan still, which suggests that u. S. Markets are potentially much more interestrate sensitive. As we go through the cycle in the next year, year and a half thanks very much. That tells you a lot. Hans, last word to you . Yes, thats a very good point. When you look back through history, two things that happen, which put a agreed headwind on equity prices. First of all falling dollar and rising Interest Rates. Gentlemen, thank you for your time. You may not have noticed two big biotech deals. Whats going on behind this group . Its been a rough flu season so far coming up, well tell you who may be to blame. Power lunch will be right back juno and biovera doing well. 2017 then you get two big deals. Lets start with celgene and juno, looking for replace the growth potentially lost after a few years from its big blood canner drug. This is a bit less than that maybe celgene are relieved theyre not paying that full premium. Some questions are being raced by bluebird bio. That stock is up quite a bit celgene has another partnership. With bluebird. Its in that very coveted area lets focus on the other deal, the 11. 6 billion acquisition about sanofi youre see san on fit getting hit there. Its a 64 premium to fridays close. All of this with the exception of san oy fit boosting the biotech space. If you look at a longerterm chart, its getting almost up there to the 2015 highs when Hillary Clinton had that tweet about drug prices. Its going to be the m. A as a positive versus the threat of drug pricing pressure. Lets talk flu. I know a few things about the flu. You have recent personal experience. I do. I dont think i had the flu last week flu season is pretty severe this year, if you look at hospital visits with flulike symptoms, we have a great chart here that shows this year, the blue line is this season it was tracking along with pretty previous severe season, though its kept going and one thing people are worrying about is people going to work when i was sick. I might have been contagious according to a city md survey 40 of us have gone to work when we thought we had flulike symptoms. Im surprised its not higher. I did a twitter poll. About 75 of 500 workers said we need to stop doing that. Would is this so harsh on children flu is always a bit more harsh on children. They spread the flu, they catch it more easily, spread it among each other and bring it home to us, also younger children and older people are often more vulnerable to the more severe effects of flu meg, thanks. Thanks, guys. A huge market rally over the past year and change has sent time aourerentccnts soaring. Well talk about that more when power lunch continues. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Three top Board Members of usa gymnastics have resigned after more victims testify gins dr. Larry nassar he was a figure for usa gymnastic. Secretary matt is expressing appreciation for gentleman cart as role. Philippine volcano has exploded the midday explosion sent superheated lava, molten rocks and steam up to three miles high a lakers fan is is 00,000 richer after that shot, sinking a half court shot. He hit the mandalay bay big shot jackpot. Back to you, brian. That may be the best story an the knicks this year, sue the dow is up when the government was closed, but now up more because the government is reopened alltime highs goldman, verizon nike and ge among the loser. The market has picked up steam. Lets get the latest Kayla Tausche is with us reporter overwhelmly passed 8118 after Chuck Schumer signaled to his conference he had brokered a deal with Senate Majority leader Mitch Mcconnell to take up the immigration debate between now and february 8th and pursue legislation traditionally if it wasnt reach by then. That happened just in the last couple hours the 2 1 2day shutdown ending after that deal was brokered the house passed it with just votes from the republican Conference Last Week back to. Kayla tausche, thank you. The dow sup more than 40 since President Trumps election that as sent most retirement account balances higher as well. Can we just retire right now Sharon Epperson has the answers. You know, that is the question that many people are asking it depends on the person it is true that the stock market and perfect savings habits means that many of reaching a bill milestone. They are hitting their goals according to fidel, the average balance stopped 100,000 for the First Time Ever last year. Take a like at that first bar, and hit a record high in the third quarter, a trend that thissensed againx investors have see the most growth they suggest you have ten times your current earnings so what do you do next well, its time to review and rebalance. Financial advisers says decrease the market risk. Make sure you keep enough money in cash for shortterm expenses, and some finance advisers also suggest considering an annuity to build in a steady stream of cash even if you think youre ready to retire. Make versus you review and rebalance and do it regularly with your accounts. And one assumes that 401 k s decree close to that number its roughly the same, the average amount so lets say people have 250,000 set aside even that doesnt last. Really you have to need, when youre going to take that money, how much you have to withdraw every year that can change, because when you first retire, you probably are most able to do the things he really want to do do like travel and activities you planned, so your expenses may be more than you anticipated, because youre doing some extra things. Also explain why people tend to move from highcost areas to lowcost areas, places more stacks friendly. And closer to he health care. Health care is also going up, people are now choosing where theyre going to live. You just sold national twice. Pittsburgh. For more on the markets record run, lets go to bob pit sannist. Hes with the nyse group, take it away. Hello, 73 degrees here, guys, but the important thing is, theyre all trying to figure out whats going to happen this year, and where is the market going . Back here in the states, nearly everything is going well. Interest investigates low and stable, a number of jobs going up, on so it feels good. Youre going to davos, you think you sit around and have fancy dinners, 45 meetings with 45 ceos. Thats what you will primarily be doing what is on their list of things that are worrying them form fors most part i sit in meeting rooms, about a quarter of all our companies are global, so its the most official opportunity to meet with them. I think in terms of what the topics will be this year, number one will be the booming economic, but on the the conversation of what could derail that, it would be mostly about trade. What could go wrong with trade not with brexit, but what could go wrong with the u. S. And china, the u. S. And other countries in north america and whats to come if. Think about what dao he rails the rally, down here weve talk about other issues, we talked about the prospects of war, we talked about the fed raising rates, about but a trade war potential could derail things. And theresic mort and more bluster from Global Leaders all over the world about revising trade deals, about about reducing the amount of trade if you look at the Free Enterprise system globals trade is the prime year reason why the quality of life has improved for so many people all around the world. I think the important thing is here from Everyone Wants to know about bitcoin the interest level is off the charts we saw the s. E. C. Come out and sat barrier to entry is really, really high, essentially know. Where do you see this go im only smilgts, because every interview. Im sitting at an etf conference and weve had a trillion of assets moved into etfs and im getting asking more about bitcoin. The etf industry is as healthy assi ever been been, but let answer the bitcoin question, theyre still missing two key elements, utilities, the ability to use them regularly on and institutional involvement. We have been working quietly for a long, long time trying to help that chickenandegg problem how do you encourage utility. What will you what have you learned . Not just to reiterate what i just said, you need to improve utilities. Some companies will say ill set bitcoin for i a store of value, and its an opportunity to speculate what we need to see is more ability though be able to use bitcoin to pay for your babysitting service, base for business services. Certainly cant do that right now. My colleague melissa has a question go ahead my questioning is why then would you file if you think theyre missing some critical elements that would make it a decent investor for the retail. Thanks for asking that. That was a business of a misunderstanding we did not file to list those etfs we we had 56 last year issue etfs, and we had an issuer final to that was not a nor Stock Exchange etf weve see all sort of numbers in inflows, is there anything that can stop it juggernaut people say indexes is way too big. What worries you about im not a prognosticator, but i dont see a reason why this trend will stop. They continue to get lower cost, more official. The end involvedor continues to become more comfortable in their portfolio. So theres both of benefit and the comfort. We continue to see innovation. We had an launch last week that already haz 150 its a bit complain coin represented. Theyre investing in companies that are committed to investing in the blockchain, for example, ibm and citi. Melissa has a followup. So if the s. E. C. Said yes, go ahead, would the new york Stock Exchange feel the go ahead to first of all, its a hypothetical, because the s. E. C. Could not have been more clear with their letter they dont intend to do that. Its rare for the ceo of an exchange to say there are some fundamental laws that has a futures contract okay. There you go. Finally President Trump is still scheduled to go, we dont know if hes going to make it if you see him there, what are you going to tell him . I do hope to see the entire american delegation. I can tell you the ceos who i speak to are appreciative of the tax reduction. What are you going to tell the president . Very appreciative of the tax reduction. Lets hope theres no trade wars, because i think youre on that very important subject. Well be here for the next two days thanks for you to the botched market, these yields are getting interesting, rick yes, they are, you know, if you look at whats going on on tens as we hover near the lowestyield, since about may of 2014, what we should pay closest attention to is the fact that its highest yields, its very orderly. Basically toying, and even though its the upper level. There doesnt seen to be nervous necessary. Then it just made sen all yields, bund yields are the german credit curve. Is that coming markets are sort of acting that way. Is as yields move up, and if youre not, you go to the junk, and finally year to date melissa lee, back to you. Thank you, rick take a look at this video. Well show you julie ertz, finding out after her own game that her husband zach is going to the super bowl. Look at that excitement. Thats next. Plus hall of Famer Mike Singletary will join us to take about the big game thats next on power lunch. Tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. Ronoh really . Gs going on at schwab. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Welcome back to power lunch. Im Julia Boorstin with breaking news on rupert murdoch, executive chairman of murdoch weighing in on a facebook announcement theyll be saying he recommends a carriage fee for trusted publishers saying if facebook wants to recognize trusted publishers it could pay them similar to the model adopted by Cable Companies the publishers are obviously enhancing the value and are not being adequately rewarded for the services carriage payments would have a minor impact, but a major impact on the prospects for publishers and journalists of course this follows facebooks announcement it will be prioritizing, and also it would allow users to figure out which using sources were trusted and valuable the eagles versus patriots should be epic, the g. O. A. T. Going after his sixth ring, and eagles with maybe some paypack for a loss at the hands of the pats is this the best matchup for the business of football thats right. Its interesting when the pats beat the eagles in 05 it was the pats super bowls in four years. They do it again it would be their third super bowl in four years. Therein thats tenyear gap in the middle of the four teams left, according to the experts, this would have been the best possible outcome you get that story line, its good for ticket sales, merchandise, and then you get the eagles, so you think about this, average price right now on ticketiq 8500 just to get in thats 50 higher than the record said last year just think about the prices here lets its 5,000 a seat, thats 350 million, just think of the value. Flights between minnesota and boston, have already jumped. Southwest adding flights, that makes sense, and if you just think about merchandise sales, about 2 billion a year for the whole league for a nattics says pats are the biggest selling team, but eagles have seen a spike. The underdog, thats the eagles fans, the number one seller, and then the big question will be tv ratings, plans down about will it be down good because people sit out because of the anthem protest this year the big question is, when will jim cramer arrived in minneapolis . Hes a big eagles fan. The government is shut down, but were starting the show with the super bowl. Ill bet prices continue to rise, jim aside, probably havent woken up yet. Videos i have seen, they might be they thought no vikings meant tickets would go down, but the eagles fans are so rabid, theyre keeping the prices up. Lets bring in someone who knows a thing or two about winning super bowls. Mike singletary, helped the Chicago Bears win super bowl xx in 1985. Some say it was the greatest time ever. Also the former head coach of the San Francisco 49ers. Welcome. Good to have you with us thank you very much all right what do you make of lets start with the simple question what do you make of this matchup . Youve got the veteran team, the patriots, against a very strong and inspired eagles team, led by a backup quarterback who yesterday played the game of his life well, it was truly a great game to watch. I thought philadelphia, nick foles, the defense i thought it was a team effort i really thought they came out and did an outstanding job of course, brady and the patriots did what they do. They go out and they execute and they win football games. So let me ask you how you might explain the decline in Television Ratings for the nfl over the course of the season across virtually every network, either between 6 and 10 declines, and a decline in viewership in the playoffs as well why do you think that is is there something wrong with the game is there something wrong with the pace of the game is it too violent, when you see a hit to the head like gronkowski took yesterday. Is it turning viewers off . What why are numbers down, mike you know, i would have to go straight to the whole National Anthem issue at the beginning of the season i think that turned a lot of fans off and i think that there were several dialogues throughout the year, and i think that it got settled. For right now. I think that the nfl will continue to go forward i think the nfl will continue to gain momentum. Coming from that, but i think with everything that you have going on in our country, you know, the whole kneeling process was not something that america looked upon favorably, and it showed in the Television Ratings. Mike, most of us just hopefully its behind us and we can move forward. Most of us just guess youre easably recognizable. Have you had people come up and say i love you, i love football, but im not watching because of the anthems. Have you heard that directly absolutely. Absolutely and you know, its understandable absolutely understandable. In our country, in this day and time and all the things that we have gone through, the military battle, the soldiers losing their lives, giving their life so yes, its understandable. Even though i think it is an issue that is just mixed and not understood across the board, but nonetheless, i think its behind the nfl. I think the nfl has found a revolution moving forward, and i think the nfl is on the right track. Mike singletary, thanks very much good to have you with us reminder, you can catch super bowl lii sunday, february 4th, on nbc if you havent been to the pro football hall of fame, its urth a visit. Yoll see his bust and many more power back in two. Everything go. Tell me about it. You know, its made me think, im closer to my retirement days than i am my college days. Hm. Im thinking. Will i have enough . Should i change something . Well, youre asking the right questions. I just want to know, am i gonna be okay . I know people who specialize in am i going to be okay. I like that. You may need glasses though. Yeah. Schedule a complimentary goal Planning Session today with td ameritrade. And made it liberating. We took safe and made it daring. We took intelligent, and made it utterly irresistible. We took the most advanced eclass ever and made the most exciting eclass ever. The 2018 eclass coupe and sedan. Lease the e300 sedan for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Theyre not investing in commodities or fixed income. What people areally putting their money into is what they hope to get out of life. But helping them get there requires a real refusal to settle for average. Because when you approach investing with a tireless desire to beat the status quo, Something Wonderful can happen. Those people might just get what they wanted out of life. Or maybe even more. The senate reaching a deal to reopen government, the threat is gone, at least for a couple weeks. Cnbc has another countdown clock. Another shutdown could be just 17 days, ten hours, three minutes, and 14 seconds away how do we get off this government roller coaster . Plus well hear from the white house on the reopening of the government at the top of the hour dont move alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Your but as you get older,hing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Im michelle carusocabrera. Heres what on the power lunch menu Government Shutdown coming to an end. Congress kicking the can down the road for just another three weeks. What happens then . Netflix next move. The streaming giant up a whopping 62 in the past year. Tonights earnings, can they keep the run going or are expectations too high . And a biotech bonanza today two deals announced worth more than 20 billion who could be next . We have your cheat cheat coming up on power lunch as we start right now. No walk like an egyptian, but well take the bangles welcome back why dont we call this the reopening rally. Stocks powering to new morning highs. Goldman sachs, verizon, intel leading the dow. Energy stocks among the leaders in s p some other names on the move, juneau therapeutics soaring, wynn resorts in the green, and twitter down on reports their coo has been offered the ceo job at social finance and may leave. And on the flipside, take a look at pandora, hitting an alltime low, going back to its ipo, all the way back, melissa, in 2011 we begin this hour, brian, in washington the Senate Voting to end the Government Shutdown, sending the continuing resolution to the house. Kayla tausche is covering all the action from capitol hill hi, melissa the top two Party Leaders reached a deal to pave a path forward for an immigration bill in exchange for democratic votes to reopen the government after two and a half days. Heres how the Top Senate Democrat Chuck Schumer described that deal. The republican leader and i have come to an arrangement. We will vote today to reopen the government, to continue negotiating a global agreement with the commitment that if an agreement isnt reached by february 8th, the senate will immediately proceed to consideration of legislation dealing with daca. The process will be neutral and fair to all sides. So that first vote passed 8118. The senate still has to vote on the final passage of the bill some time this afternoon and then the house is expected to vote after that. Im told by one source that could happen around 4 00 p. M but that timing is fluid then the president has to sign it so its not a done deal quite yet. What it does, though, is sets up an immigration showdown around february 8th, when this new deal expires. Were already seeing some flares coming up, the white house has now said that it does not support the existing bipartisan framework put forward by senators graham and durbin and the president wouldnt sign that also, a prominent republican in the house, mark meadows, said he does not believe that the house has to put immigration to a vote by february 8th, so this debate is growing bigger even before the ink is dry on the government funding. Guys all right, kayla, thank you very much. And as the senate kicks the can down the road, are we going to see, as kayla referenced there, another Government Shutdown in maybe three weeks time can republicans and democrats worth together on a longterm solution for government funding and for daca joining us now, former indiana senator and governor evan bayh, who is now the cochair of no labels Whose Mission is to fight partisan politics and dysfunction in washington. Governor, senator, welcome to fight partisan politics and dysfunction in washington. Are you winning . Well, clearly, tyler, we have our work cut out for us, as the events of the last 72 hours would suggest. I think what most americans want are practical problem solves democrats, republicans, regardless of party label, who are willing to come together and try to compromise to actually move the National Agenda forward. And yet too often, and perhaps the shutdown is an example, its the extremes of both parties that are keeping that progress, that principled compromise from taking place so we have made some progress in the house. Weve got about 30 members on both sides who are working in our group. In the senate, were expanding our numbers but we have a ways to go. Congress Approval Rating is even, i think, lower than the medias Approval Rating. Both of which are lower than the president s Approval Rating. Why do you think this has happened why do you think listen, i grew up admiring the people who were in congress, including your father, people like sam irving, people like speaker oneal and others why has the institution of Congress Lost respect and become so hyperpartisan is there a point in time to which you date it . Its been a long time coming, tyler. Certainly since the days of my father even during my 12 years in the senate, there was more polarization, which led to gridlock there are many complex reasons for this that perhaps well have a longer segment and we can come back and talk about some time, but i would mention a couple the fact that very few americans vote in primaries tends to mean that the primaries are dominated by members of both parties that are extremely idealogical or very partisan. And that makes the members a lot less likely to compromise for fear of getting a primary challenge. Also, the role of large sums of money in our politics. That tends to punish people who compromise even on anything and so those two things, but there are a lot of other things as well. The fragmentation of peoples from where they get their information so they tend to selfselect sources of information that reenforce what they already think rather than exposing them to thoughtful presentation of alternative points of view the list goes on and on, but the final thing i would say is, you know, these people ultimately work for all of us and so its up to all of us to insist upon better representation in washington, d. C. And i think more of us need to begin defining ourselves by what we have in common as americans as opposed to defining ourselves by those occasional differences that we have i think theres been too much of that senator, i think youre right here i think when the history book is written, people on this side of the table, the media, are going to play a significant role in this but i want to ask you also, will we look at history, will we also decide that this was a weird time where outcome is no longer important . The only outcome that is important seems to be reelection. Every story that i read on anything either mentioned the 2018 midterms or the 2020 president ial cycle almost every story is colored with the idea of what is this going to do to get that person or that party reelected or back in control why dont we ever talk about outcomes anymore other than simply the outcome of reelection . And do we need term limits well, you have laid a lot on the table there. I think we have come full circle where its not this is not the first time in our history, not unknown in the past that members of congress cared about selfpreservation. Very few step forward other than on a matter of principle to commit career suicide. Even on things like keeping the government open, has come to a halt so i think to answer the first part of the uestion, we have arrived at a point where actually Better Outcomes may be necessary for the members save themselves and keep themselves in power thats what we as voters need to insist on. Say if you knuckleheads cant get your act together and get the basics done, well look for something and somebody new we may be close to that. In my personal experience with regard to term limits, some states have tried that, but you have to be careful there because what that tends to do, you lose the institutional memory and i had two term limits as my states governor i was fine with that you lose the institutional memory, so that tends to empower the lobbyists and the longterm Staff Members because the members just come and go and nobody really knows how the place runs you have to be careful about that senator, michelle here. I am a very, very strong believer in small government, as small as you can make it so i am shocked to hear myself say do you need to bring back earmarks are we having all these shutdowns because earmarks were the grease thats youed to make the skids go, and it was a lot easier to get a compromise when people were doing deals. When you have fewer of them, all of that extra cushioning is gone and you end up with all these stalemates you know, michelle, its interesting. When i was governor, i found that working with the legislature, they cared about those things and so helping with a road project here or a city park somewhere else, if thats what it took to get a responsible state budget, fund education, cut taxes, grow business, that was sort of the price of doing business and that was okay. I went to congress and i voted against things like the bridge to nowhere, and the statue of vulcan and other things because they were a waste of money but i think, yeah, i think what we probably should do is have congress do what it takes to make progress. And if some earmarks are necessary from time to time, even though i might vote against them and not think theyre appropriate, if thats what it takes for some people to vote for the thing, lets make the progress and hold them accountable so they can go home to their voters and explain why they voted for something that was wasteful or stupid but we have reached a point now where i think we need to err on the side of what does it take to advance the National Agenda. If a little bit of that from time to time is what it takes, then we should probably do that. And then let the Voters Decide in the next election whether the right balance was struck interesting point of view thank you very much. A pleasure being with you appreciate it stocks are hitting record highs on news the senate has reached an agreement to keep the government funded. What about rising yields, though are they going to dampen the rally. Lets bring in joe duran and lisa eriksson, u. S. Bank of wealth management, head of traditional investment groups. Lady and gentleman, good to have you here the market doesnt seem to care about riding Interest Rates. We talk about yields being at a oneyear high, a twoyear high joe, at what point is the marked going to care . It always cares a little because future valuations are linked to Interest Rates i think what you have right now is the bullishness about the tax cut and its really changed the multiple on pes if you have companies that are able to retain more of their earnings. And the hope that they will invest, buy back their own stock or continue to invest in the growth of their company. So we clearly arent at the point where Interest Rates have gone up enough, and were within the band of tolerance, i think 3 psychologically will start to adjust things because again, well be then well ahead of the dividend yield, and it starts to make the alternative to look expensive, especially with the multiples weve got right now in stocks 3 on the tenyear, i think youre saying. Yeah. Lisa, how about you is 3 a key level on the tenyear when it comes to people deciding maybe i will go to treasuries and fixed income instead of in the stock market if i can get a solid yield there, why not, and bear less risk yeah, we do actually think the 3 level is the key one to watch. Our reason, in addition to the items that joe just mentioned, is really focused on the technical. If you look at basically where the momentum and sentiment has been with bond yields, 3 has really been a key resistance level, and it was last reached in december of 2013, around the last fed taper tantrum so if yields continue to move upwards past that trajectory, we do believe that actually could make for a sea change in how people are looking at fixed income and as well, the knock off effect on equities that being said, our base case view right now is that the rising yield environment will stay moderate, and in a controlled level such that a progrowth stance and a prorisk on stance is still warranted joe, you say you like energy and materials. Is a weak dollar necessary to like these sectors or is the Global Recovery enough to make these sectors investable well, i think a lot of the economys growing is enough. I do think also you have secondarily, this dollar that continues to go down and its quite anathema, sort of a strange thing to have Interest Rates going up, forecasts of the economy going up in the u. S. , yet the dollar going down. It would suggest two things. One, either inflation is starting to rear its head and you see gold prices reflecting that good for energy, good for basic materials. Or secondarily, Foreign Investors are starting to be less enthusiastic about u. S. Assets im a little concerned about seeing the dollar continue to go down when there are all the reasons in the world for it to be going up. It suggests inflation might be a little bit of something that we should keep an eye on for the first time in a very long time you believe that, lisa . Could we finally be at the point . We have been waiting for so long yeah, well, we actually feel that the dollar picture is mixed on the one hand, you have the fed still ahead in terms of our Economic Cycle and being the leader in terms of removing some of that monetary accommodation support, which should help boost the dollar on the other hand, with the tax reform package that will have an impact longer term on the deficit. So thats a pulldown. We believe theres a mixed picture on the dollar. If it does continue to depreciate, i think, again, the key question is the impact on inflation, and again, our base case is for more of a moderate rise in inflation over time. If you just look at how economies growing both here and globally, its on a modest pace. And so we dont expect a rapid pickup in inflation, but again, if the dollar continues to decline and at a more rapid pace, that could change the picture. Got it, thank you joe and lisa all right Sarah Sanders holding a press briefing at the white house. Lets listen in live the goal of defeating isis, deescalating and resolving the syrian conflict, and protecting innocent civilians we hear and take seriously turkeys legitimate security concerns and are committed to working with turkey as a nato ally increasing violence in afrin disrupts a relatively stable area of syria. It could be exploited by isis and al qaeda for resupply and safe haven, and it risks exacerbating the humanitarian crisis we urge turkey to exercise restraint in its military actions and rhetoric, insure that its operations are limited in scope and duration, insure humanitarian aid continues and avoid civilian casualties. We want to insure that assads brutal regime cannot return to afrin and we will continue working diplomatically to end the Syrian Civil War in afghanistan, where terrorists attacked a hotel in kabul, some attacks only strengthen our resolve to support our afghan partners we commend the swift and Effective Response of the Afghan Security forces. Afghan forces with our support will continue to relentlessly pursue the enemies of afghanistan who also seek to export terror around the world we call on pakistan to immediately arrest or expel the talibans leaders and prevent the group from using pakistani territory to support its operations lastly, in regards to the Government Shutdown, were pleased to see senator schumer accept the deal that President Trump put on the table from the very beginning, which was to responsibly fund to government and debate immigration as a separate issue the statement here from the president of the United States that i will read quote, i am pleased that democrats and congress have come to their senses and are you willing to fund our great military, Border Patrol, First Responders and insurance for Vulnerable Children. As i have always said, once the government is funded, my administration will work towards solving the problem of very unfair illegal immigration we will make a longterm deal on immigration if and only if its good for our country end quote. With that, ill take your questions. Jonathan sarah, how is the president going to work with democrats when hes running a campaign ad that is calling them complicit in murder . How does he actually show leadershipon this . Look, the president s number one focus is our National Security hes been very strong on discussing the need for Border Security and tying that directly to National Security thats a big focus of both the president s campaign at the time and also since hes become president. In terms of specifics of any ad running, those arent being done by the white house and i cant get into any details his position in terms of the need for Border Security and how that impacts National Security is something we have talked about and been very clear on is he bringing the democrats down here, bringing republicans here, hashing thigout. How is it going to bow different . We didnt see him over the weekend. He was only talking to republicans. Obviously f theres going to be a deal by february 8th, its going to need to be a deal with democrats. We have been very clear about what we want to see in any legislation. And i dont think that theres a whole lot of daylight between where we are and where the democrats are. We want to negotiate and get to a place and were hopeful we can do that over the next couple weeks. Senator schumer on the floor claimed the deal he had on the table from Mitch Mcconnell today was much different than the one last week. How did the ball move forward, if it did at all, between friday night and this morning look, i think that democrats realized that the position they had taken frankly was indefensible and that they had to focus on first funding our military, protecting Border Patrol agents, funding Vulnerable Children through the c. H. I. P. Program these are things they didnt disagree with. They agreed with everything in this cr. The president stayed firm. Republicans stayed firm. And democrats, i think, realized that they had to move past that piece of legislation and so they could focus on the conversation theyre desperate to have. So is it your contention that the deal that Chuck Schumer accepted today is really no different than the deal on the table friday i dont see it to be drastically different, no. Just so we understand, is there no interaction, and was there no interaction between the president and the Campaign Committee in the creation of that ad that he approved thats something i wnt be part of that process i couldnt speak to that its an important question. It says im donald trump and i approve this message i would refer you to the campaign because theyre the only one whose can speak specifically to that would you quote that as an accurate representation of his belief of what democrats are and what their position was in the shutdown they were complicit and would be complicit in future murders because of the shutdown . I think if people are unwilling to secure our borders, that theyre unwilling to end chain migration, unwilling to end the visa lottery system, unwilling to fix all of the problems that we have in our immigration system, and arent willing to negotiate and actually do things that fix that system, that we know to be problematic, then yes, that would be a problem and certainly allow for future incidents to take place john real quick john. Is the twoyear requirement required from the president for defense spending Going Forward, is that one of his top goals not just this fiscal year but two years on defense look, im not going to negotiate with you here. But we made clear thats expressed on the hill. We made clear thats our preference thanks. The president several months ago called on congress to provide a legislative fix for those 700,000 or so daca recipients. Is it his position that he would sign such a bill, a clean bill, or would he insist upon funding for that border wall certainly, we want to make sure the president and the administration have laid out what we would like to see, those priorities havent changed a solution on daca, into chain migration, into the visa lottery system, and funding for Border Security that would certainly include the wall another issue, tomorrow, i believe, is the beginning of the final round of negotiations concerning nafta, the north American Free trade agreement. How are those negotiations going right now . What were hearing right now is that theyre not going well. They havent been going well for the first five rounds. Is the president prepared to pull the u. S. Out of nafta look, we dont have any specific announcements, but we actually feel like things are moving forward were going to continue in those negotiations as the president has said many times before, hes going to make sure that he gets the best deal for america and american workers. Thats still the focus, and that will still be a topic of discussion as we move in these negotiations dave after this shutdown episode, does the president feel like he can deal with democrats anymore . For example, senator coons said over the weekend, he implied the president didnt know the difference between authorization and appropriation. There have been other leaks about conversations behind closed doors what have the president level of trust with Senate Democrats Going Forward . I wouldnt say its the highest level of trust, but were certainly hopeful we can reach an agreement on responsible Immigration Reform we have laid out what we want, and we hope that democrats, we know they agree on most of those components, and we hope theyll come to the table ready to actually make a deal and less focused on playing political games. You have immigration, the budget, infrastructure, other big things you want to get done. Is that possible after this fight . We hope so. We hope that democrats, again, will not play politics and theyll focus and put the needs of the country ahead of the political gamesmanship they have been playing over the last couple months. We hope we can move that ball down the field on a number of issues but starting with the budget and then moving into immigration. Peter. Sarah, would the president support a pathway to citizenship for d. R. E. A. M. Ers . We have said we would support a permanent solution for those in the daca program, and i think that would address that. To be clear about that, you must have some position on this. The president has conviction on this issue does he support this divisive issue, a pathway to citizenship for these individuals . I think on the specific, the number of people that are already in that program, we do hope to find a permanent solution that would address that to be clear, legal status versus pathway to citizenship or does it not matter to the president . Thats part of the negotiation process, but right now, again, we want a permanent solution for that program. But we also want to keep a big priority for the administration is making sure we dont find ourselves having this same battle in two, three, four, five years down the road. We have to have a responsible Immigration Reform that addresses a number of issues, not just the daca program. I want to follow up on that question you said that you would be open to legal permanent legal solution for the 690,000 people in the daca program. What about beyond that theres a lot axios had a story last week that said internal White House Administration memo estimated what the democrats want would potentially legalize 3 million d. R. E. A. M. Ers. Where did you get that number and what is the limit that the president has on how big this population of d. R. E. A. M. Ers really is . I think the d. R. E. A. M. Act would be predicted to legalize 1. 7 million. Where do you draw the line again, im not going to negotiate with you any more than i was going to with major. This is something were going to work on with congress and look for the best solution for our country as long as, too, again, dont forget, a big priority for this administration is making sure we address this program in its entirety, not just that one piece of it. You said this program, again, theres certain people who had daca protection, and other d. R. E. A. M. Ers decided not to apply for various reasons. Is the White House Open to addressing a deal in this goround for a population thats larger than just those in daca were open to having a debate on a level Playing Field on this issue. And negotiating that with congress and making sure that we get the deal that meets the criteria we have clearly laid out. Blake. Thanks. One clarification before my question president is still planning to go to davos . As of right now, if all things go as expected this afternoon, with the reopening of the government, which we expect that they will, the president s delegation will leave tomorrow and the president will continue on his trip later in the week. The priorities of a daca fix, where exactly does that rank because when you talk about what needs to happen for a deal, diversity visa lottery program, the wall, ending chain migration, daca. Some other components up on the hill may need to be worked in as well the actual daca solution, how big of a priority is that, that one component, for the president . We look at all of those as equal parts in this process. Thats why we laid out what we called our four priorities and listed that as one of them a daca fix is on the same level Playing Field as the wall . Look, we know thats going to be part of this negotiation. Thats something the president has committed to do. But we dont want to do that without the other three components its like having a stool with two legs it doesnt work very well. We want to make sure were addressing this more fully and in a responsible way so that were not just kicking the can down the road but actually dealing with the issue more long term steve. We havent seen the president. What has he been doing behind the scenes as the drama unfolded look, we put out a number of readouts. Hes had several different calls, both with members on the hill he has met with a number of his cabinet to manage the shutdown, that was a big priority for the president , making sure that this was well managed and that it wasnt as director mulvana calls, weaponized as it was in 2013, and making sure that we could make the impact of the shutdown have as little effect on americans as possible thats been a big priority for the president. I think that it certainly went much smoother than it has in the past but also, the president was putting pressure and Standing Firm on exactly what he was willing to do and what he wasnt, and it very clearly worked because were back where we basically started on friday, and the democrats have now allowed this to move forward, hopefully the house will move this through quickly and it will be at the white house for the president to sign, and then we can start immediately on discussions on Immigration Reform when will we see him . Well keep you posted well certainly make sure you guys are aware when the time comes. Will we see him signthe thing . Its possible well let you know as the timing of that still isnt finalized. We have to wait on the house piece. Theres also omb and legal reviews that have to take place before it actually finally hits the president s desk, so a little bit of that is just a timing and formality issue david. Are we going to see him today regardless of what the house does well let you know, keep you posted sarah, just going back to the nafta discussions, does the president still have faith in wilbur ross. There was a report suggesting otherwise . Absolutely. I spoke with the president about it directly this morning he has 100 confidence in secretary ross he loves wilbur, thinks hes doing a great job and hes been a strong advocate for the administration and been a great leader when it comes to the trade discussion on steel, aluminum, and certainly his involvement in trade across the board with the administration. The president was very clear back in september when he had d. R. E. A. M. Ers have nothing to worry about. Is that still the case i think we have been pretty clear that we want to find a solution on the daca program and were going to hope that democrats are willing to work with us to make sure we actually resolve this issue a lot of d. R. E. A. M. Ers in this country who are sort of living on pins and needles not knowing what their fate is, and has in store for them. What is this white houses message to that population they should storm capitol hill and protest there because that is the place that has held up this discussion democrats are the ones that shut this discussion down by forcing a Government Shutdown, by being unwilling to fund the government, we lost four days over this process of the conversation that should have been focused on Immigration Reform, fighting over this cr. If they had been part of the solution instead of part of the problem, then i think we would have already been further down the road in our negotiations on that package and hopefully we wont have problems like that in the future thank you, sarah. Two questions. The first on the obvious congressman tom cole, member of the republican leadership, said over the weekend that to a member, republicans in the house were committed to the three priorities the president laid out in the process of reopening the government is the president in cement on those three in the negotiations that are going to follow ending chain migration, the ending of the lottery, and the appropriations for the wall . Yeah, we have been clear those are our priorities when it comes to immigration nonnegotiable look, these are the priorities we want to see in the package. And were going to negotiate that with congress, but we have been pretty up front i think i have said it about 30 times already today. Those are the priorities and the principles we have outlined that we want to see in any legislative package that the president signs. My other question, sarah, is on a completely different subject. Monsanto and bair were two giants in the seed industry, preparing to merge their ceos have met with the president. And many fear that this is going to lead to a monopoly for them in the seed industry and raising the prices, which will hurt the Farm Community is the president in favor of the merger of monsanto and behr . I havent spoken to him about that ill have to get back to you i understand that you guys have laid out your criteria for what you want in a deal, but is the president saying that on march 5th, if he doesnt get what he wants from the democrats and those other areas, that he will begin to deportment the d. R. E. A. M. Ers . We havent determined that. Were hopeful that we dont have to do that and that we dont have to get there. We would like democrats to get serious about actually solving problems they say they want to have this conversation they say they want to negotiate, so much so that they were willing to shut down the government if theyre that willing to go that far, surely theyll be willing to come to it table and talk about Real Solutions and get something done are they going to remove the deportation protection from the d. R. E. A. M. Ers . The president is the one who enforces the law its his job as commander in chief. He did that, absolutely. One other question. Because lets be clear that is because of congress failure to actually address the issue. Theyre the ones that actually pass and make those laws, and the president gave a sixmonth timeframe in order for them to do that. And now i think all of america is counting on them to show up and make sure that happens one more, the president s son eric said the shutdown was a good thing for us, meaning politically it was good thing for the president and the party. Does the president agree with that i havent spoken to him about those comments darlene. What is the guidance on how quickly the government would reopen and how soon workers would be expected to get back at work and National Parks and other facilities that were closed will reopen again, most of those parks, they tried to maintain and keep those open unlike in past shutdowns, they really tried to minimize the impact on the american people. In terms of what the turnaround time for a full reopen, as i said earlier, we are waiting on the house to vote and clear, then it will go through the omb budget process and review, and a legal review, and then hit the president s desk, which we expect some time late afternoon, early evening, which would make most government offices already closed, so they would start back in full capacity tomorrow morning. And if that changes, well certainly let you guys know, but thats what we tentatively expect at this time. Steven i was hoping to give you a respond to the criticism that senator schumer lobbed over the weekend. In addition to saying the president negotiating with him is like nightsating with jello, and today, the senator said the great deal maker sat on the sidelines. Was it a concerted effort on the president s part not to reach out to him this weekend . Is that part of his strategy look, what the president did clearly worked the vote just came in 8118. I would say that those numbers are much more in the president s favor than in senator schumers favor. Im not sure what changed for him and what he gained other than maybe nancy pelosi taking a bunch of republican members out for dinner to celebrate their shutdown im not sure what other positive things came out of this weekend for democrats. Sorry, democrat members. One last question. Just following up on that, in addition to Chuck Schumer saying the president negotiates like jello, even leader mcconnell said he wasnt completely clear on where the president stood when it comes to some of these immigration priorities so is the president shifting his policy positions behind the scenes under pressure from his conservative base . Not at all. The president , as well as the administration, we have laid out clearly in a threepage memo what our priorities are, what our principles are for this process. And we have been very consistent on that front. Does john kelly have veto power over any deal. Jason miller doesnt work in the administration the only person im aware of with veto power in this country is the president we have been listening to Sarah Sanders, White House Press secretary, holding a briefing right after the senate voted to end the Government Shutdown, at least temporarily. A lot of questions surrounding what happens once the next deadline is crossed. Were still waiting for the house to officially vote on this and the president is expected to officially end this shutdown late this afternoon or early this evening so the Government Shutdown looks to end some time today possibly as early as this afternoon. A lot of questions also around that controversial article, really scathing article about wilbur ross and the criticisms around him i would suggest he falls asleep at meetings, hes not useful after 11 00 in the morning, and that more importantly, donald trump was very unimpressed with his negotiating skills in deals which would be a scathing criticism from one deal maker to another. Right, but Sarah Sanders says the president has 100 confidence in secretary ross and loves wilbur those are her words. Great leader. News there, the president will still apparently be going to davos later this week where maybe you will see him because thats where youre heading. See you there on wednesday, thursday, and friday it will be a big help surrounding michelle charmed, im sure, tyler. Were going to take a quick break. Power lunch will be right back shares of netflix hitting an alltime high ahead of the companys results. After the bell, all eyes are on subscriber growth with investors and analysts waiting to see if the company has been heart by price increases and tougher competition. Dan morgan is a netflix share holder and Portfolio Manager good to have you here. How are you good. The temptation is to dig into the details of what you expect and subscriber growth. Let me ask you something very basic. When do you start getting nervous about rising Interest Rates when you hold a stock like netflix, which has such a huge multiple 228 pe on trailing numbers well, youre right. The high multiple, its about 180 times fiscal year 2017 earnings the multiple contracts as you go out to 18, 19. But youre right the high growth, high beta stocks that traditionally do well in a very buoyant market, and you know, low Interest Rates, you would have to start kind of scratching your head a little bit you saw this morning, right now you have the tenyear over 2. 6 yield. Thats the highest we have been in a really long time. So you know, the interesting question is where is that Inflection Point where higher Interest Rates start doing some Collateral Damage into earnings and economic growth, but then throws off the model that allows for a stock like netflix to trade at 180 times earnings. I dont think were there quite yet, but something to watch for. Do you have a number in your head, like if the tenyear, the twoyear hits x . 3 . On the ten . If you break 3 , we havent been there in a long time. You start going north of that to 3. 25, 3. 5, and its not inconceivable, the fed is guiding for two to four increases. Thats going to put you at 2 to 2. 5 increase. And unless it inverts, it doesnt take long to get up to 3 , 3. 5 on a tenyear some analysts out there are so young, im not sure they have ever analyzed stocks in a rising Interest Rate environment. Do they know whats coming inindeed we start to see what can happen to the high beta and high momentum names . You bring up a good point i have been in the business since 87. I have been through three crashes. I know what its like. Its painful when the market pulls back there are people who have not been around long enough to see how damaging it can be everything out there, netflix continues to be positive, you know, in terms of the upcoming numbers, still looking for good things on this quarter so i still think you have a little bit of room left, but if you get like you were talking about before, a big shift up in that yield curve, things are going to change. So far so good right now, and boy, its going gang busters again today. Dan, good to have you here thank you two big biotech deals this morning. Cell gene announcing an acquisition, and another theres been record consolidation in biotech in the last year. Who will be next to make a deal . Joining us now is jeffreys analyst michael ye good to see you. Great to be here. You know, when a lot of investors heard about cell gene for juneau this morning, we were thinking what happens to this bluebird partnership and could that be the next acquisition out there. What are your thoughts about first the deal that was made and announced today with juno, and whether or not bluebird could be another potential target great i think a couple observations. One is we shouldnt be surprised at cell gene going out and buying companies i think youre going to see more of the large Cap Biotech Companies and Big Pharma Companies do acquisitions with 150 billion to 200 billion in cash coming back to the u. S. To deploy i think youll see more of these deals play out the second thing, as it relates to bluebird, although the stock is trading nicely up today, is while they might go out and buy that partner, and i can appreciate the investors think that, theres certainly a whole host of other companies that they could do. So i think with buy of juno is a positive that adds to the pipeline. Bluebird, a potential, although i wouldnt say a high potential, and third is a lot more cancer and neurology deals to follow. Are all the hopes riding on the one treatment . We saw what happened with jcar 15 when the company had to scuttle it almost a year ago now. Look, in that timeframe, juno has bounced back they have shown great data at the ash conference just a couple months ago the stock reacted very well. Seemed to be a lot more on the path to possibly getting approved in about a year so juno has not only that jcar 17 drug. They have another multiple myeloma drug similar to the bluebird drug, and also a whole host of solid tumor pipeline programs behind it that celgene talked about that would be all upside its akin to gillian buying kite last year, a whole host of pipeline things well see play out over the next couple years what are your thoughts on the overall sector meg brought up a good point. It could be a pushpull kind of year for biotech you have the positive m a activity, bringing cash back that could fuel m a further, but then you have the midterm coming up and the prospect that drug pricing comes back into the fore yeah, so look, i think in the first half of 18, youre going to continue to see a rally, not only from the large cap biotechs which have been quite unloved, both celgene, biogene, but i think well see a rally with those stocks particularly after earnings into the summer i really think the place to play is the small and midcap stocks a, because they have got all the innovation, they have all the new great transformative drugs coming, the platforms. But also because, of course, many of these are potential m a candidates that many of the Big Companies are going to buy we continue to see the ibb which is breaking out today probably moving higher into the summer. I think there will be a pause around Midterm Elections great to speak with you thank you. Michael yee. Great to be here. Bitcoin tanking right now 8 , down 17 so far this year. Big part of the future of bitcoin and the rest of the cryptocurrencies may depend on the s. E. C. And whether the Regulatory Agency embraces Bitcoin Exchange traded funds. Bob pisani is standing by with jan vanek of vanek vectors ceo and tyler, were talking about bitcoin and what kind of future it has in the etf universe the guy who knows is jan vanek more importantly, hes the guy who had Bitcoin Futures etf in registration, and you withdrew it because the s. E. C. Asked you to withdraw it they had problems with liquidity, with custody around bitcoin etfs is there anything you can do to satisfy the s. E. C. To see a bitcoin etf . I think the s. E. C. Is taking a thoughtful approach in trying to think of this, which is an entirely newacic, its software. People are trading access to software, Software Developed rights and theyre identifying all of the key issues in the marketplace. We as an issuer have to engage with them to try to address these issues a futures based etf does at least address the custody issue because youre not worried about where is my bitcoin going . Your risk is through the futures contract what about the idea of not getting around it, but a different kind of structure like an exchangetrated node where a bank would come in, partner with you, and say were going to track a bitcoin index, and instead of bitcoin behind it, well put the banks money, Goldman Sachs or jpmorgan, smblds money behind it, and theres no physical ownership. Traditional financial institutions, banks, dont have a way of custodying bitcoin. Bitcoin, you control the private key, it can walk away. Its almost like a gold bar that can walk away and theres no infrastructure, and there are big technological issues to make sure that that process doesnt get hacked or that it doesnt get lost and all that kind no one is prepared. Where does this go . Are you saying its essentially impossible, that youre at an impasse. Theres got to be a way out. The interest level is so high. What is the next step . There are solutions, but it will take months to develop. There are solutions to custody the price, whats the right price of bitcoin that problem has been solved because you just have to look at where its trading and use a smart mechanism for that can i point out something here even though youre skeptical about anything happening bitcoin near term, i want to show you his tie because i just noticed it its a scale, and it has gold on one side and bitcoin on the other side i know youre being cautious, but you think theres some kind of future here what we call it is a form of digital gold were not new to the party, but once we start thinking about it, we have expertise in commodities and precious metal we said this is a complement to gold i have to leave it there. Youll tell us if theres any developments jan vaneck on gold and bit coin etfs. The master of ties. Thank you both very much okay, another down day for ge the stock falling below 16 in earlier trading. Stock at the lowest level since 20 2011 is there anything that can turn ge aunrod . Well dig in on trading nation contemporary cockpit, 360 Degree Network of driverassist technologies and sporty performance whats most impressive about the glc . All depends on your point of view. Lease the glc300 for 449 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Stocks on the march again. Meantime, a massive scandal hitting one of the worlds biggest Accounting Firms aditi roy with the story. Six accountants, including three kpmg partners were arrested charged with conspireing to deface government charges. Three tipped off officials about government inspections of their aud audits, including brian sweet, thats a nonprofit which overseas audits of public companies. The s. E. C. Claims he downloaded confidential information he believed would help him at his new job at kpmg. Cynthia holder and jeffrey wada tipped off the firm about upcoming audits. In 2013 nearly half of their audits were found deficient according to investigators holder got a job at kpmg and wada was looking for a job when it was uncovered the pcao adding its disturbing and will not be tolerated. The accused have all been terminated or placed on leave. Sweet pleaded guilty earlier this month. Time for trading nation, lets trade general electric, falling again. That stock at its lowest level since late 2011. Ari wall does it show any stop, any supported for ge no hope how we see it, brian. This is classic falling knife. We recommend staying away. A view weve had since february of last year its been on our sell list here are the longer term support levels to watch as we get down there. You have to go back to the lows from 2010 to 2011, right around 14. Could be on the lookout for stabilization there. It comes down to a basic formula for us, bearish trend equals bearish outlook. Thats our take. Wow bill, any different view outside of the technicals on ge . As ugly as this chart looks, i think theres some compelling reasons to get long. The fundamentals here, if youre a longterm investor youll get some value on the pe side and then youll be in it for an exciting rebranding or restructuring. On the technical side, im looking at longterm support, about 16. 20. The selloff, its not a fresh selloff. This has been happening for a while. Yes, theres an outside bearish month forming but i think theres some support down here the rsi is below 30. Ultimately if it can continue to close on a weekly basis above 16. 20, i think it becomes interesting to the long side bill and ari, thank you very much bill, a little more optimistic ari says no hope for that chart. For more trading nation go to our website at tradingnation. Cnbc. Com. Now the latest from tradingnation. Cnbc. Com and a word from our sponsor. In a losing trade, avoid letting your emotions get the best of you. Too often traders want to add to a losing position, but experienced traders will say, your first loss is your best loss in other words, ke ata small loss and move on before it becomes too big. Check please i was at the north american Bitcoin Conference on friday mo levin has been turned into a minor celebrity. Take a look, when we walked around on the floor, people taking selfies, like he was a star he said a minister from utah asked him for a discounted entry fee and he says, no, no, no, we dont do religion here listen to what he told me. We dont do religion here i see. Bitcoin is the religion. Bitcoin is the religion bitcoin is the religion we remain agnostic for other things. Its really a religion or youre being silly theres sort of a religion and holiness to this and this is the preachers and the temple of bitcoin. The temple of bitcoin and it has some holiness. I believe it because the when you get a tweet about bitcoin or any cryptocurrencies, you dont get a tweet like that unless youre talking about religion or politics people feel that strongly about cryptocurrency. Reminds me of a time weve covered before. Mine is lighter last night during the football game, the sioux false Police Department tweeted out this. Weve been contacted by the minneapolis Police Department and are assisting in the locations of the Minnesota Vikings defense. Was never found, by the way. They clarified most are, indeed, vikings fans they were not poking fun, they were more sad. Missing persons report. Ge, new low, cracked to 16 to the downside. Watch that. Ouch. Today Google Alphabet became the Second Company with a Market Company above 800 billion. By the end of the day, there might be a third above 700 billion. That would be microsoft. Thanks for watching power. Closing bell starts now hi, everybody. Welcome to the closing bell. What an afternoon its been. Im kelly evans at the new york Stock Exchange. That was a very informative check, please. Thank you. I enjoyed that very much im bill griffin as youve heard, a senate deal to reopen the government helps lift stocks. Now its the houses turn. That vote is expected soon. With the markets rallying, lets get to kayla live on capitol hill kayla . Reporter kelly, the senate did pass that key procedural vote earlier