Well talk to one row about that. Power lunch starts right now. And happy tax deadline day, by the way, today the last day to send your money to uncle sam, maybe that is impacting your stocks, too, stocks down for the fourth time in five days, keep in mind as michelle said, Goldman Sachs along with j j, taxing the dow, those two stocks responsible for most of the dows losses today. Well have much more on your money and impacting on stocks. We begin with facebook, and in san jose, california, where Mark Zuckerberg is expected to take the stage at any moment to deliver a keynote address to facebooks conference. Well discuss the Facebook Post of a man being murdered in cold blood. Well talk about the suspect who killed himself today during a police chase. Reporter that is right, brian, we expect Mark Zuckerberg to take the stage any moment right now. He will listen carefully to see what he says about plans to ramp up facebooks review process for offensive videos or changes policy. This after yesterday the company said they know they need to do better and are working to improve the review of the videos. Facebook will work to focus the Conference Today on messenger among other things. Its been a year since messenger launched box, and today well talk about the opening on groups, for everything from sharing songs to playing games. Well talk about future products in the work, the Virtual Reality and augmented reality will be discussed today, there will be sessions going on the next two days and plenty of demos for the 4,000 developers here to try. Following zuckerberg, the first one set to speak there will be a couple of keynotes from product announcements to david marcus, well interview him today and in the meantime, well talk zuckerbergs keynote addresses. He has to be shocked, when you turn on any cable network, it says facebook killer, it has to be so bad for the branding. Yes, im sure, facebook weighed in saying they know its unacceptable and they need to work on different ways to pull down the different type of videos and block them from being posted. As they use a combination of Artificial Intelligence and people who are reviewing videos and flagging videos, they need to figure out what to do to make sure it happens never again. I would expect that zuckerberg would address the issue probably right off the top of his comments. But im sure he had a whole other speech prepared for today. As he tries to show the developers what they have in the works for facebook and messenger and instagram. Well, the best played plans, so julia, thank you. And Goldman Sachs weighing in on the plans, as goes goldman, so goes the market, theyre down, whenever they fall 5 in one months time, the s p 500 more often than not falls right along with it. Only 16 of the time since 1999, that is when goldman went public does the Broader Market manage to shake it off and post positive returns when the bank stggles. So should the public be worried . Lets bring in peter anderson, chief investment officer. Mr. Anderson, let me start with you, do you buy this analysis . Do you buy the Broader Market . Well, it is too simple, there are many, many more factors more than ever right now compared to the past oh, 15 years ago. So what do you think of the markets then, right now . I think the base line is very attractive for u. S. Equities, and goldman, their competitors have done quite well where at the early stages of the earnings this quarter and things look pretty bright to me. So i guess i mean, goldmans miss was a lot about trading, where as the rest of banking were so focused on we tend to focus on their loan growth and what it tells about the economy, i have to tell you, the low growth is mixed. I wouldnt think that Goldman Sachs tells you what the rest of the market is going to do. As a result, the Companies Often have a lot of variation at a high level but yet still a lot of variation. We look at the other Capital Markets exposed. They did you do well. Loan growth has slowed down, for investors in general there is a lot of information about the slow curve, and tenyear treasury yield. That said i still like the big bank, Capital Markets exposed banks and the earning season is stilt ear still early. I think what were learning its a good earning season, not a great earning. Not much higher, unless we get the Corporate Tax cut. We have a guest coming up, especially, ill make the argument that the earnings are pretty good. That aside, david, we have a lot of stuff going on, earning s obviously, we have north korea, and elections, and dysfunction, as an investor what is top of mind to you . What is the most important thing to you . Well, you just mentioned a couple of them. I would tell you the other one is valuation that people asked us about. What is important to me is trying to find opportunities in a market that is fairly but fully valued. We see opportunities in many large financials that we talked about. Health care, and large tech and small cap tech, and sectors as u. S. Financial and Growth Stocks i would look abroad. To europe for more value opportunities particularly in the industrial sector, versus industrials, well looking for growth stock out of asia. But peter, the uss carl vinson, one of the biggest carriers of the world is heading to an island off the peninsula of north korea. What do you feel about the growing concern about the saber rattling . You answered my own question for me. Exactly that, i think we are way too much minimizing the geopolitical risk when we talk about weaponizing nuclear weapons, et cetera. That is a very, very serious issue we have to factor into the models. So when i talk about a base line u. S. Economy that is absent all that. I think the base line is very strong. But then you layer on all the complexities that grow as we speak. Its very, very difficult. So for instance, when david mentioned investing even overseas, say in europe, i believe, you have brexit, you have the french election, there are so many issues now. Let me just go back, that is why i was saying earlier. Its very different from this rule of thumb about goldman, there are so many new factors right now that it is very, very complex to put all of this into some kind of number where you think the s p 500 is going to be. Instead i think you really have to be sober about looking at individual stocks, picking the stocks that are somewhat insulated from all the geopolitical risk. Its very challenging. Yes, it certainly is, that is why we have you g on. And lets dig deeper, joining me, chris, Senior Analyst at oppenheimer. You probably heard about the analyst, why i thought goldmans analysis was not terrible. From 2006 to 2017, revenues up 26 , return on equity was 11. 4 versus 6. 4 a year ago. By any metric, any company in the world would like to have that kind of growth. What happened . Look, im recommending goldman, im a believer, i tell you their business is more volatile on a quarterly basis than most of the big banks business. What you said is right, coming off a very depressed were having chris, you there . Looks like we got patched into another feed there. Sorry, yeah so the comparisons coming off last year are distorted. But if you look at comparisons against 2015, right . City, bank of america and j. P. Morgan on average, one, two, big trading results up about 5 versus 2015. Goldman was down 46 . So you know there is no sugar coating. But the one thing chris, and i know youre there go those voices in my head again. Im glad you hear them too, i normally have them just here. Chris, well try to carry on with the interview, our promise, i am sorry its not some phantom. The other thing, goldman doesnt lose money trading that often, they didnt do well last quarter, but most quarters they do pretty well. I imagine since you still recommend the stocks you expect trading turn nd because that is what goldman has always done. Bingo. I mean, that is my basic reason for recommending the stock. I think the rising rates mean more volatility and fixed income markets which will ultimately transfer into the fixed income trading revenues. And i think goldman will be the pure play beneficiary of that. The other thing i think to keep in mind, when you compare it to city and j. P. Morgan you have to realize that those three mega banks are all much more holistic banks, much more trading interface, versus corporate. Where as goldman is more hedge fund, it is inherently more volatile. Thank you, we know youre still recommending the stock, we apologize for the technical issue. And maybe gary counchen is more important than people thought to them it was only us who heard it. The audience thinks were crazy, we have strange audio here in the studio, and coming up, teresa may calling for early elections june 8th. She hopes to build in parliament, and wants a greaters majority. The pound jumped a lot more on that, more than 1 , markets believe she may even get more conservative seats in parliament, that helps her strike a better brexit deal. This all comes while europe and the world await the more key election when the president of france, round one of part two of the election is sunday. The country is on high alert for the teor threats to disrupt the process. Just today French Police say they stopped what they called an imminent terror attack, arresting two suspects in the port city of marseille. The men are both french and suspected of wanting to commit a violent action on the eve of the french president ial election. France has been on high alert with the issue of security, a major one throughout this cha. Campaign. Well have live coverage all day with the results of round one on monday. Nobody gets more than 50 in the first round . That is what they think will happen, you go to a second round where somebody gets 51 . And two weeks later kind of like soccer championships but with a much more important outcome to some, i suppose. To some. All right, in the face of huge disruptions in retail, one segment is still shining pretty bright. That is luxury. We have a very special guest. The former ceo of chanel will join us, today is the day taxes are due. After all the fear and doublechecking what are your fears of being audited . Well, depends on how much you make. Well tell you the odds coming up. The road can change in an instant. But th lightning fast shifts and dynamic tracktuned suspension, what the road demands, the gs delivers. Experience High Performance through high technology, in the lexus gs 350 and gs turbo. Experience amazing. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Whyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Welcome back to power lunch, in san jose, at facebooks developer conference. Ceo Mark Zuckerberg just took the stage for the keynote. Right off the top he addressed the issue weighing on facebook, this question of how facebook is going to address the issue of sunday, a video that was posted on facebook of a murder, now the question is how theyre going to address those types of offensive videos moving forward. Take a listen to what zuckerberg said. We have a lot more to do here. And were reminded of it this week by the tragedy in cleveland. And our hearts go out to the family and friends of the deceased. We have a lot of work and we will keep doing all we can to prevent tragedies like this from happening. After addressing that tragedy, zuckerberg tried to move the conversation on to all the different innovations facebook is working on, including the likes of augmented reality. Well listen to the keynotes at different times, back to you. Lets get a market flash right now. So gmc having a breakout day right now, stocks up right now on the best day ever. The Nutrition Company is rallying after early signs of renewed sales growth here. Nearly 5 million customers joining the Loyalty Program at the end of the First Quarter, shares though to put in context, still down more than 40 from their ipo price of 16 bucks, off 80 from their record high, still, though, michelle they traded on 18 shares on average. Thank you very much, don chu. From the board room, to the executive room. Chanels sixyear stint as the executive there. She has a new book out, detailing her long and sometimes rocky climb up the retail ladder. Welcome to power lunch. Thank you. Before we talk about the book, the state of luxury right now and it really struck me right now when donald trump was inaugurated. The questions were about how the d. C. Style would change because it was so different from the obamas to the trumps. Is luxury more okay now from donald trump melanias effect i dont know if it is okay, but the white house influences fashion, look at michelle obama, her effect on fashion in the white house. She helped to bring back j. Crew, temporarily. He is a great mentor and friend. I think its really tough out there, traffic is down, customers have so much stuff in their closets now its pretty hard to grab off that millennial customer. Is that the problem . Too much stuff . I think its part of the problem, you have the internet, you can basically shop at home, i know i do, do you . Yeah, i think it means were getting a all riglots more stuf and you wonder if is true or permanent. I always worry when somebody says well never go back. It always makes me think of the other, the retail comeback . Its really hard to say, when you have kids at coachella snap chatting instead of walking down madison avenue with their labels have you seen the photographs absolutely, buying among second hand sites. And i think we got to think about that. As we move towards perhaps less stuff, where you see the joy of left, et cetera, isnt that good for luxury . I think for example, the japanese were famous for having very small spaces to live in. So when they bought one purse, boy, they spent four or five grand on a purse because that was the only one they were going to buy. I think it would be and can be good for luxury if they go beyond the label, maybe they need to think about how to create more meaning for millennials. I really think that is what at stake now, 50 of the shoppers will be millennials very soon. They want things more connected to the environment, and social justice. Lets go back to your book, this is a question close to my heart. We had another baby a couple of years ago, why is it so hard for working women . I mean, and not just women, i know some of my buddies stay home and their wife works. When you look at the cost of child care and taxes, corporations dont seem to give a you know what. They dont seem to contribute to consumer care. And you think, you know, its not worth it. Im giving my money to somebody else. What do corporations seem to need to do . Because child care is absolutely important. There has to be Flexibility Work arrangements for women and men, also we need to embrace a new way to think about leadership. This 21st nt requires skills that women have intrin c intrinsically. This is what we need today, i think companies have to embrace it to see more women at the top. Well, well read more about it in the book, its great to have you on and hear your theories what is going on with retail. Thank you. Beyond the label check out the book. And you could probably tell the cold pit in your stomach, well, its take day. So what are the odds of facing an audit . Well, it has to do a lot with how much money you make. Well give you more numbers, the chance to deal with the irs, always a great time. Were back right after this. Well, it may have come three days later this year, but the day is upon us, today is tax day, april 18th. And while many check their odds what are the odds you will actually end up getting audited . Turns out the richer you are the more likely you will be audited. And they are ten times more likely to be audited. Where do you fall . If you make median income, between 50 and 75,000 there 75, the odds are 4 , if you make 500,000 to a million, you have a 2 chance. If you me a milon bucks you have at least a 5 chance of being audited. If youre a super earner, those making 10 million or more you have more than a 5 chance of being audited. Well, large deductions, relative to income. Dont write off more than you earn. If you have an llc, an scorp or anything else, they can audit you. If you own a Foreign Bank Account that is likely to get you flagged. And if your company is always getting audited and you claim those losses, and always have losses, you will likely get audited. So this is maybe the one time you dont want to be rich . Exactly. So you are underpaid, i love you all. I just got audited some people who do audits will buy audit insurance, and if you get audited, they cover the cost of the audit. The cost, or what you may owe if you screw up . The challenge is what nobody covers. Thank you. Thank you, guys. All right, what role does social media play when it comes to posting disturbing and offensive videos . Power lunch is back in two minutes. Hello, everybody, im sue herrera, defense secretary jim mattis, arriving in saudi arabia for his first trip to africa and the middle east, he says theyre working together to get the north korean issue under control. The leader of north korea again recklessly tried to provoke something by launching a missile. It was not an intercontinental ballistic missile. It failed on launch and shows why were working so closely right now with the chinese. Hundreds of palestinians in israeli prisons continuing their Hunger Strike as supporters gathered in ramallah to show their support, experts say that many held by israel are joining in on the protest demanding better conditions. And the pope celebrating his 90th birthday on monday in the residence at the vatican, shocking the world back in 2013 when he announced his decision to leave office. Year up to date, that is the news hour, michelle back to you. Earnings went on t markets today, dow down triple digits, Goldman Sachs responsible for some of it. Down about 5 , analysts say they beat expectation