Acted upon the recommendation of mr. Rosenstine and mr. Sessions with whom he had met on monday evening, who then put their recommendations in writing. He said that he had made up his mind to fire mr. Comey before those gentlemen had met, number one. And number two, that he was basically not following their recommendations. He was acting on his own, so that raises some questions. The question of turmoil in the ranks of the fbi, something that has been raised several times and the president raised right there, was knocked down today on capitol hill by acting director mccabe who said that mr. Comey had the very strong support of the majority of the rank in file at the fbi. He certainly painted a very different picture of that. Reasonable minds obviously can disagree and from where the president the attorney general and the Deputy Attorney general sat they may have come to different conclusions on that but certainly that would be another sort of series of questions that i expect youll hear a lot more about throughout the rest of the day and into the evening. It was interesting, tyler, when the president told lester holt that he said that he asked director comey point blank if youre able to tell me am i under investigation and the president saying that he was told by the director that he was not. Its been a certain point of controversy over the last several days as well. And there were three separate occasions, again, that had been part of the record, part of the record in the letter that mr. Trump sent to mr. Comey telling him that he had been relieved of his duties, that it was on three separate occasions. Apparently one time was at a private dinner that where mr. Comey and mr. Trump talked about his continued tenure at the fbi. And i believe the president s words were well see how it goes and it came up at that time whether he was personally under investigation. It came up again during what the president said were two subsequent phone calls, one apparently initiated by mr. Comey to mr. Trumps recollection. The other initiated at the president by the president to mr. Comey and it was in one of those where he asked am i if you can tell me, am i under investigation. And mr. Comeys answer is, no, you are not but mr. Trump obviously understands that his campaign and associates and members of that campaign are in deed under an investigation regarding their connections with and dealings with russians. You had mentioned as well, tyler, and this is certainly a point that people are focussing on as well, whether the president s answer as to whether around why he fired director comey, how it squares up with what the white house put out itself just two days ago on may 9th. The white house statement saying, quote, President Trump acted on the clear recommendations of both deputy a. G. Rod rosen stine and a. J. Jeffrey sessions. The president telling lester holt just moments ago that he planned to fire comey regardless of the recommendations that he got from those two individuals in those letters. Well, yeah. There is a little bit of maybe each are talking past one another here, but the president was declarative, as you point out, in seeing that he had made up his mind to fire director comey before they he met with mr. Rosen steen and attorney general sessions on monday night before he received their written endorsements of the firing of mr. Comey. So obviously theres a little bit of untidiness or message squaring that will need to happen over the next few days. Obviously, as i said, at the start, scott, and i think you would probably agree, not a lot of questions this will spawn as many questions as it provided answers. Yeah. Remember, this was just a small part of that interview between lester holt and the president , which youll see more of on nightly tonight. I know the issue that you guys will be discussing today, tyler, you, brian and the rest of your gang, is what all of this means for the president s agenda as it relates to the way we talk about the stock market and the Way Investors have been so optimistic about what mr. Trump plans to do and what its ultimately going to mean for the markets. Yep. Theres been such little volatility and such Little Movement as if the markets have been waiting to see what the next step is, the next catalyst, if you will. Wasnt the answer nothing . Excuse me . Isnt the answer nothing . No impact on the agenda. Why is that the answer . Well, i think if you looking at all the Research Reports that have come out, the market as you guys talk about every single day on halftime the market is priced in not much expectation. Would you guys agree with that . I think the market has come to the point it has now all on expectation. The reason it hasnt been able to do anything from here forward and why its been in such a tight range and volatility has remained nonexistent is because there are concerns over where the next catalyst is going to come from. Absent of that, why would stocks move . Because the market took 15 months off, scott, for the campaign and was in a sevenyear up trend before then and the rate of ascension after the election was just correlated to the sevenyear up trend, according to some people. Thats not my opinion i should have thrown out some names on that one. I just wonder everyone thinks it will derail the trump agenda. Do we think that it will . Its not a question for me to answer, i suppose. I just dont know i may not derail but it certainly will delay. If you have an even more toxic and poisonous atmosphere in washington between democrats, republicans and visavis the president , it certainly could make parts of the planned agenda more difficult now than ever. Obviously white house are always called upon to walk and chew gum at the same time, and one is not necessarily at the exclusion of the other. But one thing i would observe, scott, is that the president is known to be an extremely effective salesperson. And his salesmanship is going to be called upon with respect to healthcare, it will be called upon with respect to infrastructure, it will be called upon with respect to trade and most importantly tax reform. If his salesmanship is in any way called into question or he becomes a less effective in that realm because of what is going on in this other realm, that directly impacts seems to me the trump agenda. Scott, gentlemen, thanks very much. We appreciate your time. Thanks for your coverage. Brian . To scotts point, can it get more toxic in washington . Sure it can. Sure it can. So if youre watching us right now, welcome, by the way to power lunch. And youre wondering what were talking about. Lester holt just releasing part of his exclusive interview with President Trump, an interview that was conducted not very long ago. The majority of that interview will run tonight on nbc nightly news. Lets get a listen to what President Trump had to say when lester holt asked him about the firing of fbi director james comey. Look, hes a show boat. Hes a grand stander. The fbi has been in turmoil. You know that. I know that. Everybody knows that. You take a look at the fbi a year ago, it was in virtual turmoil, less than a year ago. It hasnt recovered from that. Monday you met with the Deputy Attorney general rod rosen steen. Right. Did you ask for a recommendation . What i did is i was going to fire comey. My decision. It was not you had made the decision before they came in the room . I was going to fire comey. Theres no good time to do it, by the way. They because in your letter you said i accepted their recommendations. So you had already made the decision. I was going to fire regardless of recommendation. He made a recommendation. Hes highly respected. Very good guy. Very smart guy. The democrats like him. The republicans like him. He made a recommendation. But regardless of recommendation, i was going to fire comey. There you go. Regardless of recommendation, i was going to fire comey. Some people may dispute that. More with reaction from washington, d. C. Rod rosen steen is the longest serving u. S. Attorney, hes been through five different administrations. He operated for the majority of the career under his radar. He has been cast under the very bright spotlight and i think a lot of questions around rod rosen stine are also going to pop up. In other words, why did he write this memo. Reporter yeah, thats right, brian. He is a longserving u. S. Attorney but a very shortserving Deputy Attorney general. Hes only been that position for a matter of days at this point. Theres a loot of pressure on him now. Theres been reports that hes been very upset this week about how this was handled, but you talk about the question of turmoil at the fbi and i can tell you there certainly is some turmoil at the fbi now. I just got off the phone with a person over at the fbi a few moments ago who told me that the reaction to the comey firing was that it was shocking. Disappointing. People are sad. They had a sense that comey was the one of the few adults in the room here in washington, d. C. , that he wasnt beholden to any Political Party and that made him the right guy in this moment. So this idea from the white house that comey had lost the faith of the building is clearly not true, at least according to some over at the fbi. And were also witnessing now an evolving set of explanations from this white house as to why the president decided to fire james comey. Initially they held it right on that letter from rosen stine. Now, though, the president said he decided to do it any way and that he felt that the fbi director was grand standing and a show boater. Refresh my memory, amen. Was mr. Comey did mr. Comey grow up as a republican . Thats a good question. I have to go back and look at his political affiliation. He did serve in the Bush Administration and there was a famous moment in the Bush Administration where he showed independence of that administration as well. So, this is a guy who doesnt have a lot of partisan loyalties in his core, and is viewed very much inside the fbi as somebody who is willing to stand up to both parties, as we saw last year certainly. Amen, much to coverage there in rainy washington, d. C. We thank you. Well be back with you im sure during the remainder of the afternoon. You bet. Joining us now on the phone is former Vice President dan quayle. Mr. Quail, you said mr. Trumps chief of staff will be of critical importance and i assume you still feel that way. Let me pose the question this way to you as you observe whats going on in washington these days. Obviously we in the media are disliked because we can be nitpickers and maybe were nitpicking this one to death as we so frequently do. But you in your capacity have to spend and have spent over the years a lot of time evaluating managements of the companies in which you invest, how they operate, how the leadership works or doesnt work in tight situations like the one that the west wing finds itself today. Would you invest in this Management Team right now . Well, let me step back here. Theres two things right away that the white house has to do, in my opinion. One, i wouldnt be giving a lot of interviews until there is an agreement on exactly what has happened. What are all the facts . There have been different variations of facts, even in todays papers, on your show, you know, what are the facts . Get everybody in the room. Understand what the facts are and then get it out and get it out as soon as possible. It may take a little while, but find out all the facts. Raise all the questions that youre raising and get the answers. The second thing, as soon as possible, they have to put forward a new director of the fbi. And then that will change the story to some extent on who the new director is going to be rather than this. The investigations lets your viewers should be reassured, the investigations are Going Forward. The fbi does the investigation, but the Justice Department is the one that does the prosecution. Those are going to be Going Forward. I mean, these are down two, three, four levels. Nothing is going to stop since comeys now been removed. Thats the state of the situation right now. Let me come back. I dont mean please, with all respect, i dont mean to put words in your mouth, but it sounds like you believe that there has been some messaging disconnection between the oval office and his Communications Team at the very least because you said, you know, you need to get all the facts straight and have everyone speak with the same voice, and it doesnt seem like that is what has happened here. Am i understanding you correctly . I think that is a fair assessment. And thats why its probably going to take some time because theres a lot of questions. I mean, youve raised some questions. Everybody, theres more questions today than there were yesterday. So you have to sit down and get all the facts out. You cant have this dribble out with, you know, a press conference here, a statement over here, a leak over here. Get the facts out. And i think once the facts come out, you know, its going to be they can start getting back to their agenda because quite frankly the way i look at it is that President Trump was he was going to get rid of comey. He was frustrated with him. The wall street journal for months, which is sort of the editorial page at least is somewhat the bible of the republican party, theyve been calling for his dismissal, so this is not totally shocking. I think what has shocked the community and the people in washington is the way that it was done. Yeah. Dan, its brian sul vin. In business you have a Business Plan, well the Business Plan is not any good unless you execute that Business Plan. Well, they made a decision but the execution of communicating that, you know, people are going to go back and assess this and i think theyre going to find a lot of, you know, a lot of a lot of problems with it. Now, i think quite frankly i think what happened is that they thought that it was going to be well received on both sides, republicans would support a republican president and the democrats didnt like comey because some of them believe he was hurting Hillary Clinton and her election. So it would be bipartisan reception in a favorable way. Did you feel do you feel, dan, this is brian sullivan, a little bit of hypocrisy from the Democratic Party many were calling for his firing after the Hillary Clinton revelation came out right before the election now suddenly everybody is rallying behind comey because of russia or do you believe that is deserved because of the Russian Investigation . Look, of course theres double standards and hypocrisy. Its politics, look. Well said. President trump is a business guy. Hes not a politician. He, im sure in his mind probably thought and so did the people around him and most of the people around him dont have a lot of political experience. Okay, well the democrats have said this, so theyll fall in line. Theyll support us. Its not the way washington works today. It is highly partisaned. It is you know, very polarized. And so the democrats are going to oppose everything that donald trump does. I think he has finally figured that out or the administration ought to figure out that theyre going to oppose him in every way they possibly can. Look, you set aside the carter page and general flynns situation and it looks like theres not much else there. The hearing Lindsey Graham had, which is a Sub Committee uhhuh. Had ms. Yates and clapper, nothing came out of that three and a half hour hearing, nothing. And both of them said that theres no evidence that theyve seen that theres any collusion between the Trump Campaign and the russians. Yeah. I believe, dan, there are now five active investigations into possible collusion with russia. To your point, none of them have generated anything. Listen, for our audience, however, mr. Vice president , theres two stories here. Number one, there is the comey firing and the investigation around russia. Then there is the idea, which we were just debating you might have heard with our colleagues scott wopper in about what exactly this may or may not do to the donald trump agenda. The cnbc audience, our viewers right now are looking for tax reform. They may be looking for Corporate Tax reform, for health care reform. Does this shadow that has now been cast over the president because of this, does it in any way impact what the gop knows it needs to do . I dont believe it does because the gop members ive spoken with have said weve got to get this done with or without the president. What do you think . I think that he can go full steam ahead with his agenda, but hes got to right the ship and do the two things i just said. Theyve got to get this under control, find out what the facts are and get them all out as soon as possible. And dont let this stuff dribble out. They have to get on with a new fbi director. I read in one of the papers today where the senate luncheon, the caucus that they have which would they last anywhere from an hour to two hours. I dont know how long this one lasts. And i think like two minutes was spent on comey. The rest of them health care and tax reform. So the legislatures, you know the senators, the congressmen and women, they want to go ahead with the agenda. They want to go ahead with tax reform. They want to go with health care reform. On your show today talking about the latest Health Insurance company that is just dropping out of the obamacare. This thing is in a death spiral. Something has to be done. But this is a temporary setback, but hopefully they learn a lot about this and they can figure out the execution of this communication process once the president makes these decisions. Right. If you would bare with us, i want to play and then ask a question, i want to play a sound bite from moments ago, senators richard bur and mark warner, the chair an Ranking Member of the intelligence committees met with reporters after meeting with Deputy Attorney general rosen stine on capitol hill. They were asked about mr. Trump calling james comey a show boat and a grand stander. Here is mark warners response. Lets listen. Frankly, im offended at the president s comments today. This is a continuing pattern of disrespecting the men and women who serve in our intelligence community. And i think the president would be better served regardless of what his views would be, supporting the ic rather than continually questioning and candidly repeatedly calling into question the leaders integrity. Well, obviously mr. Vice president , mr. Trump is nothing if not outspoken. I would like to get your reaction to that. But more pointedly, in your heart of hearts, do you believe that mr. Comeys firing had absolutely nothing to do with the fbis investigation into Trump Campaign connections with russia . Nothing, zero . I dont say zero. I basically thats not the reason he was fired. First and foremost, now the Russian Investigation is going to intensify. Its going to be much harder. Its going to be much more intense. Theres going to be much more heat applied. I still dont as i said with the exception of carter paige and general flynn, i dont think theres a whole lot out there. I mean, this town and this administration they talk about leaks. If theres anything out there, you guys would know about it because its all over the networks and newspapers the next day. But look, let me just say this, you know, donald trump a businessman, no political experience, hes a different type of president. I would say comey and ive been elected to congress in 1976, so i go back a long time. He is a different type of fbi director. Fbi directors, yes, they testify on the hill, but theyre fairly low key. Remember the role of the fbi is not prosecution. The role of the fbi is investigation. The prosecution is with the Justice Department. And i think people are sort of missing that. So, you know, to have a very high profile fbi director is very, very unusual. Mr. Vice president , thank you so much for your time and insight. Always great to have you on. Thank you. We appreciate it. Dan quayle, former Vice President of the united states. Brian . All right. A lot more going on aside from this, in fact, our colleague and friend melissa lee walked all the way to las vegas last night. She has a big show coming up. What do you have from vegas . There is a lot going on here. Im in vegas. After the break, brian, fast money trader will join me for an exclusive interview and talk about whether the trump agenda could impact mma and whether snaps disastrous earnings result could impact whether private Companies Want to bother fairing the public water. Well talk about that and much more ahead on power lunch from las vegas. Stay tuned. Most etfs only track a benchmark. 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. A 10speed directshift 5. 0transmission. Ine. A meticulously crafted interior. All of these are feats of engineering. Combining them with nearperfect weight distribution. Is a feat of amazing. Experience the firstever 471horsepower lexus lc 500 or the multistage hybrid lc 500h. Experience amazing. Welcome back to power lunch im melissa lee. Were live in las vegas at the credit suites private internet summit, some of the Biggest Tech Companies that could go public. One man who plays a big role in that is eric, the global head of Asset Management at credit suites. He joins us now and with us is cnbc center gooi. Gentlemen, good to see you. Eric, how is the market right now in terms of ipos. Is it picking up . Its been quite good. We had really pretty low volume in ipos in 15, 16 for sure. 17 picked up nicely. We had big transactions. We expect a lot of companies to go public. I have to ask you about snap. The stock is just getting abolished in todays session effectively. Does that make private Companies Take a pause as to whether or not and when they go public . I think theyll definitely look at it. Its tough to go public. Theres a lot of things you have to get go ahead. Theres a lot of things you have to get in place to go public. When you move out of the private settings in a public market, there are things you have to hit. I think its very early days. I think theres a lot more to go on. The last 45 minutes or hour i was listening to President Trump parts of his interview, does the political landscape, is it giving people pause or is this just noise . Well, i think people are optimistic about what could happen. It hasnt happened. It looks like things arent moving as quickly as we like them to, but theres very good chance capital will be repetriuated by companies. Good chance Corporate Tax rates will go down. I think that has people interested in buying equities in a low volatility environment. You have to buy growth. You have to invest in things that are going to grow and create value. When youre talking about the trump agenda and the optimism, to some extent it sounded as if the optimism is priced in at this point. We havent seen any policy changes, actual changes done. So right now if you had to put a dollar to work, would it be here in the u. S. Or elsewhere . I think the u. S. Environment is quite good. What we have seen is a lot of Earnings Growth this season. Its not all about the trump factor. Its a lot about Companies Performing well. Earnings hitting the bottom line and i think the trump factor only could be more positive with respect to business. We havent seen definitive moves yet, but we could see those. So i think the trajectory is flat to positive with respect to trump and Earnings Growth has been good. I think it is a good environment. We talk about the optimism a lot, but until we see that optimism result in actual things happening, investments, deals being made, are you finding that companies are sort of holding off to find out what exactly the policy changes will be . So theyre optimisting but theyre not willing to pull the trigger yet . We have seen activity a little slower in the First Quarter than we would have liked. I think thats probably part of it. I think people anticipate good things coming. Theres a lot of cash on Balance Sheets. If we can repatriot capital, that would be a big boost. A lot of new Tech Companies have to reposition themselves. I think there will be a lot more activity whether donald trump does some things that are very positive or not, but i think the anticipation is it could be better. Eric, for the last eight years or so Monetary Policy has been thats what were talking about seemingly and thats been the catalyst for the market. The feds on a rate hike strategy it appears. Do you think they seamlessly pass the baton from Monetary Policy to fiscal policy. Is that possible . I think its hard and well have to see. Well have to see if they get programs that get passed that do stimulate the economy and we are able to transition off. If we can, i think its very, very positive. I think you see some democratic and republican support for programs that could stimulate the economy. Again, we havent seen anything yet. Right. At least in your business, do you think 2017 is going to be a better year than 2016 . It started out that way. If you look at the start of 2016, it was very tough. We started out very good. Earnings have been good for banks. Hopefully that continues. Eric, thank you. Thank you very much. Guy, thanks. Of course well be back to you later. Brian, will talk to one hot unicorn in the cloud space. Thank you very much. Well, snap chat investors losing a lot of money today. That stock is down 20 . It is now within a buck and a half of falling below its ipo price. The quarter came in worse than expected. Snapchat ceo evan speegle doesnt seem that worried about Mark Zuckerberg. Here is what he said when asked about facebook last night on a conference call. People are going to copy your product if you make great stuff. I think weve seen this happen a lot in technology. When google came along, everyone really felt like they needed a search strategy. When facebook came along, everyone felt they needed a social strategy. Now i think with snap, with our company, we believe that everyone is going to develop a camera strategy. Just because yahoo, for example, has a search box, doesnt mean theyre google. Lets bring in laura martin, senior analyst. Youre still very bearish on the stock, obviously its been a good call. When i heard that quote from speegle, i kind of had to do a double take. Im thinking does he recognize that given instagram and facebooks combined might that maybe theyre yahoo and not google . Yeah. I think its a good question because the problem with a Software Business is they dont really have motes. And you saw his user growth disappoint the street adding only 8 million new users. And his revenue came in light compared to street estimates. Theres a lot of street estimates here so usually lot of large numbers makes the average correct and he missed those two and spending money sort of like a drunken sailer and its Public Company money, so i dont know what the answer is. But i think someone just snapchat you. Is that your snapchat ring tone . Exactly. They wanted a little dance theme. I liked it. Here is the thing, first off, spending money like a drunken sailer. Speegle, im a capitalist. He got paid. They brought the company public. Do you think ultimately that they got him and bobby have a Winning Strategy . You know, i think its too early to tell. I think the street has been disillusioned with their first earnings call, but that happened with Mark Zuckerberg at facebook and he was a fast learner. So well see if evan speegle can step up to the task of being a public ceo. Lets talk about that question of motes, which you mentioned earlier. This company and theyve done really, really well. Theyve penetrated a market, but it can be a very fickle market. Theyll be another toy that can come along. How vulnerable are they to the next cool thing . Well, i think the issue with these Internet Companies is every ten years somebody drops out of harvard or stanford and creates a new technology that uses everything that didnt exist ten years before and the incumbent is subject to his installed base of old technology. And i think thats sort of reoccurring nightmare in the internet space. So, snapchat is using free bandwidth and high end devices like apple to make something really cool, and the problem is that facebook can copy it because they have smart engineers. But the next 24yearold will make something even cooler than snapchat seven years from now would be my guess. And ill just be getting on snapchat at that point. [ laughter ]. All right. Thanks so much for being with us. My pleasure. We appreciate it. Coming up, a sea of red, a phrase i really love. A sea of red for retailers today. Macys and kohls dropping on the back of their earnings. Macys tanking double digits. Whats wrong with retail right now . We will dive in for a closer look next. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. 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. I was going to fire comey. My decision. You made the decision before they came in the room. I was going to fire comey. Theres no good time to do it, by the way. They because in your letter you say i accepted their recommendation. So you had already made the decision. I was going to fire. He made a recommendation. Hes highly respected. Very good guy. Very smart guy. The democrats like him. The republicans like him. He made a recommendation. But regardless of recommendation, i was going to fire comey. That was President Trump speaking with nbc news lester holt earlier about his decision to fire james comey, as the fbi director. Youll see the full interview tonight on nightly news 6 30 in most markets. Now to sue herrera with your cnbc headlines this hour. Thank you very much, ty. Here is what else is happening at this hour, everybody. Britain is hosting a high level conference to address the deepening humanitarian crisis and the security situation in somalia. Theresa may says theres a critical window of opportunity for that embattled country. Our task today is not to tell somalia what to do more to impose our own solutions on this country from afar, but rather to get behind the new president s efforts and to support the Somali People as they work to build this new future for their country. Russian president Vladimir Putin hosting palestinian president in sochi. Saying it would be impossible to create an independent palestinian state with 1967 borders without russias help. And christies announcing it will auction off jacqulynn Kennedy Onassis watch sale on june 21st in new york. It is estimated to be worth between 60 and 120,000. It was given to her by her brotherinlaw in 1963. A painting by mrs. Onassis accompanies the watch. And she was first lady when she wore it which is one of the reasons why they think it will bring about 120,000. Thats the news update this hour. Ill send it back to you guys. Brian . Sue, thank you vur. Retail reck, macys investors losing a ton of money on that stock. Kohls being dragged down as well and jcpenney. However, could there be one big saving grace for many of the troubled retailers . Were going to find out and let you know what that might be coming up. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. The retail reck continues. Look at macys stock which is down in a big way today. Were down 15 . Kohls is also lower. Courtney reagan with us as well. Matt boss, retail analyst with jp morgan chase. Boss is the number one ranked retail analysts by institutional invest every he has a neutral rating on both macys and kohls. Matt, i am going to start with you. Listen, stocks at a sevenyear low. Now trading just over eight times forward earnings. Here is the thing we always heard about macys and perhaps why may may get a bid about it the rumors about it. Retail, their actual physical locations of real estate have value. At what point does this stock stop falling because investors realize it will start trading at the value of its real estate and the Retail Business effectively youll get for nothing . Look, its a great question. What i would say, i do not think the Department Store sector is yet at a bottom. We put a piece out on monday, actually talking about Square Footage in the u. S. And how overstored we are versus the rest of the world. We think theres a 25 cut that still needs to happen to the overall Shopping Center retail. That actually would imply nearly a 50 cut to the Department Store sector. Given the Department Store sector here makes up mid 40 of that pie, overseas and the rest of the world, its only a 21 its only 21 of the pie. Shrinking overall pie in incremental cut to the Department Store sector. Yes, theres value, but the value of macys real estate and the value of all of the Department Store real estate is really concentrated to the flagship locations. The problem with the rest of the retail out there is the supply demand equation. Theres too many boxes on the market and theres a lot more to come. Matt, theyve been closing stores. Theyve been closing stores, them and others. At what point do they get o the right size. 90 of Retail Shopping is still done brick and mortar. I know some of that is gasoline, but Americans Still like to its not as if nobody is shopping. Is it . No, its not a consumer issue. The big issue is that with Shopping Center retail we have five to six times more than europe. And so this is years and years of overbuilt brick and Mortar Retail. There will be a place for brick and Mortar Retail and the consumer will continue to shop. We actually think the consumer is strengthening. Were seeing oil and gas markets strengthening. Were seeing opportunity from an employment standpoint. So this is not a consumer issue. Its legacy versus forward retail. Its convenience and value that you need to win and the Department Stores right now are not checking either of those boxes. Matt, you have a neutral on both kohls and macys. What would it take to push you to sell if you dont think were at a bottom yet . Its not necessarily that these retailers are doing something wrong. Its this normalization and this equilibrium that needs to happen. So its an overstored u. S. Retail backdrop from a real estate standpoint, but the other piece of it is you have this brick and mortar versus ecommerce shift thats happening. Third you have the off price retailers, which are really hitting on the value side of this speck strum. And so when you think about this, its the category killers, its is se fore ya that can do cosmetics right now better than the retails. Its the tj maxx that are all taking market share from different angles. The Department Stores are kind of fielding punches from just so many different competitors. Weve got nordstrom coming up after the bell today, matt. Do you think that were going to see any light at the end of that tunnel, by chance . Thats a little bit of a different consumer because of the higher income, but its pretty much the same game. The problem with nordstrom is that that brick and mortar store historically has meant more to the consumer than almost any concept we cover. So for 80 of their sales right now is coming from brick and mortar. Only 20 online. Theres no way that years from now that online percentage is not higher. But with only 9 differentiation, literally 91 of what nordstrom sells is brands that are sold in many different venues other than nordstrom itself. The problem is in that translation from that 80 brick and mortar, which most likely is 70 or 60 longer term, i think they stand to lose more than than almost any other retailer out there during that transition. Yeah. Given that the store experience and the Service Element just cant be replicated online. Matt boss, number one ranked retail analyst. Thank you for coming on. Thanks for having me. Courtney will stay on. Lets bring in steve former ceo of sacks. Pretty bleak picture being painted of Department Stores. Department stores its a tough picture. Retail is a good picture. Retail is growing 4, 5 . So youve got to see changes going on in the Department Store sector if theyre going to catch up. Where is most of that growth happening . Online. Matt boss did a great job describing. Its not just online. Outlets. Its category killers. Off price, ross, burlington, tj maxx. Amazon is killing it obviously. So youre seeing that as a growth sector, but take a macys for example, which is getting clobbered today. Theyre the seventh largest internet player in the country. Its not that theyre not in the internet. I think it has to do with are they selling differentiated product. Matt had two words, convenience and value. I would add one more call trust. And those are the variables that the consumer wants. You go to amazon, youre getting convenience, value and trust. Go to costco. Go to tjx. You have to ask yourself with all the retailers are they getting the value that the consumer wants . And you got to reinvent yourself. You cant sell the same stuff that everybody else is selling. I mean, im an old moose. I love going to Department Stores. You and i have talked about this. Absolutely. I think the best theater in new york is to walk in the first floor of sacks at christmas time. People are squirting you. Its good stuff. But, i can get most of the goods that they sell somewhere else and often cheaper. Thats the problem with a lot of these retailers and i need something more in terms of an experience. Thats right. Not merely get squirted with the perfumes. I need more than that. Thats the issue with the number of stores. Youve got too many malls. Theyre closing 7,000 stores this year. Youre going to see more coming because we got twice as many as europe. But the problem is you got to provide an experience. Go to dubai. Walk into a mall where you have a ski slope or skating rinks. Used to be entertainment in the mall. Now you go into a mall and it doesnt feel exciting. I was in a mall saturday night. It was crowded. Restaurant, absolutely. Dont they know who you are . I was at California Pizza Kitchen and my name counted for nothing. Nothing, nothing, nothing. So im there. There was an event, a makeup event. Sure. On the first floor of nordstrom. I thought, what they were and what they were missing was champagne. That little thing that would make it a social moment for the ladies to go with their girlfriends and do it. And i think so, thats my observation. My question is, do you or your friends, your peers go to Department Stores . I do. You do. Yes. Because your job or just going . I think its also part of just who i am. I have a harder time finding clothes that fit me ordering online. Ive just had a bad experience with things thinking ordering things think theyll fit a certain way and they dont. Its a hassle. Isnt that true with everybody . Maybe. So i like shoppers, right . Absolutely. Commodity items on amazon are great, dog food, bleach, paper towels, whatever it might be. I want to touch it. I want to try it on. Amazon now will become the biggest apparel seller in the united states. Theyre number two right now. Theyre already going to become the ease of returns . The ease of returns. The prices are good. You buy two, return one. Doesnt cost you anything to return. Being stuck in the middle is high to be. High end or low end is good places to be. The middle is very, very tough. I think being nondifferentiated is very tough too. The consumer has perfect information. Theyll take the app out and look at the prices. What experience can target do . Instead of pressing it on my amazon button. I think walmart, three years ago i looked at walmart and said there dont get it. Theyre not changing. I listened to a presentation couple weeks ago. I was blown away the way they were changing, mark lori and his team, Doug Mcmillen and his team, they have got it. Theyre changing. Theres a big retailer who is showing that you can adjust, but the problem is the consumer is changing faster. I know. Than most retailers are adapting. They think theyre changing but theyre not changing as fast as the consumer. I shouldnt have used dog food as an example. I want to ask our viewers. Have you ever gone to a store just because you want to make sure that that store stays in business . Ill tell you what, theres a pet foods store in my house. I went in and buy the pet food. Its a lot more expensive than amazon. I dont want food its a lot more expensive than amazon. I dont want a half of ton of empty strip malls in my town. We gunshot to run. Quick one because the Small Companies growing. The small bookstore, small boutique seller thats where the action is. In my town its action at the small book seller. Thank guys. Steve courtney, appreciate that. Books, reading. The battle over the cloud. Well head back out to las vegas where its a different kind of action. Melissa is in the center of it with one ceo whos taking on amazon. Thats next. Im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. A 10speed directshift 5. 0transmission. Ine. A meticulously crafted interior. All of these are feats of engineering. Combining them with nearperfect weight distribution. Is a feat of amazing. Experience the firstever 471horsepower lexus lc 500 or the multistage hybrid lc 500h. Experience amazing. Welcome back to power lunch. Cloud warses are heating up as company cut price and edge competition. Joining me now is ben, the ceo of digit tat ocean to keep player in the cloud space. Why dont you explain in laypersons term what is your company does. Your unlike the quote unquote traditional cloud companies. Its odd to say that there are traditional cloud companies. Yeah, definitely. We take a different edge. We built a platform for developers to build and scale applications of any size. And our big differentiation is we focus on simplicity and user experience. You can see by the customers that are choosing to work with us, so, nearly 1 Million Developers world wide have adopted our platform. 50,000 Business Team with some of the biggest names in the industry are using us. And what theyre gaining is the ability to move quickly, develop with faster velocity and time to value. Your able to envision the services in under a minute. And even then to bill any Software Application in the world. So when you hear about Amazon Web Services and google cutting prices and competing on price, are you immune from that or are you also impacted by that pricings competition . Yeah, we all definitely sell infrastructure so that has a cost to it. The good news is while the economics of it continue to improve which deliver great values for customers so the prices keep coming down. Absolutely. With snap and these bandwidth heavy large applications what youre seeing is increase and consumption of the services, and so were able to make up for it. The market is huge, its 25 billion sfrurk market, today thats going to double or triple of the next three or four years. Have a strongs position in that allows us to caption that growth. How do you think about going public, especially when you see and i know this company is in a ditch space than you. You see a company like snapchat, they report their first earnings as a trading company, does that make you hesitant about breeding the public waters . No not at all. Infrastructure is sneaky its not a consumer trend, when youre building mr. Speakers youre billing businesses on top of our flat form so that gives us the skablt that we need. Also whats great is the dirnsuation, like i said, its a huge market opportunity. On one side you have kind of traditional enterprise i turkey Led Companies and on the other side you have market focus businesses. So we want to really visit into that developer tools ecosystem. 30 Million DevelopersSoftware Worldwide we want to build the best Police Vehicle for them to build their application. Thank you. Straight ahead, America Frazier will join us live on power lunch. Next. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Anything worth pursuing hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. Good afternoon. Welcome to the second hour of power im tyler mathisen. Heres whats on the menu. Power lunch live from new jersey and las vegas. After a couple of quiet weeks the markets providing a bit of action today. The dow down nearly 150 points but gaining background right now. You seen him next to President Trump in the meetings of the white house. Ken frazier of merck joins us. Plus tesla started to take orderings for its solar panels. Is the next step. Power lunch starts again right now. Welcome were going to have much more on lester holts exclusive sbref with the president but theres a few interest for the market. Snapchats down nearly 20 after results in its First Quarterly report. Macys and kohls down. And bidding wars for street path is over. Verizon is going to buy the company for 3. 1 billion. Investors are betting the bidding might go higher. The stocks is up 500 in two months. Melissa. Thank you brian im melissa lee in las vegas. Snap is a big story and its a big story here at the private intern company. Coming up in the show were going to have fast money. The global heads of Internet Banking here, we will be talking about snapchat and trade what it means for the social media space. Well also talk about retail. Also ahead were going to be talking to the ceo of class pass, hes trying to revolutionize how you get fit. This is one you all might want to listen to. Okayly listen up. Thank you very much. Merck gets treated for key true dah. Ken is going to join us for the interview but lets get more on this. Key true dah is one of the drugs next to chemotherapy. Jimmy carterer has stage four melanoma he credited key true dah for shrinking the tuesday his or her. The drug was expanded to a broader set of patient in accordance with chemotherapy. Therell be projected 220,000 cases of cancer this year and more of deaths from the disease. The drug issing with many others. Analyst estimate the drug will drive 4 million this year. Ken frazier the ceo of merck joining us to tell us what does this mean for patients . Thanks meg for having me. I think this is an important step for patient but its important to rmgz its one step on the journey where were going to be able to provide therapies for big patients Going Forward. Tell us the next step for the drug . Youre continuing to test with lunge cancer what are some of the next big cast list we see here . If you take a step back were studding this drug by 30 tumor types, so for us its all about making sure we do the right studios, social studies. What does that say about this drug and the new mechanism thats using the e mine system to fight cancer that are sort of the unprecedented number of trials you invested here . This is a whole new way of going after cancer. It is. We believe the drug will be foundational Going Forward to the treatment of many malignant disease categories. How much progress have we made in fighting cancer . I think you have to break it down by individual cancers. If you look at the data we had in this study, if you look at chemotherapy alone, what weve done here is doubled the ability to shrink tumors. So if you have how does that translator into survivable or five year right. So its a new drug we have to be in patients by five years to answer that question. Were pleased by the shrinking tumors and the median progressionfree survivor is greater than it has been. We have to see over the long term how that translate to survivors. One thing weve done is weve gotten heavier, obesity is a major crisis, theyre lnging cancer to obesity. What obligation do we have to ourselves . The cost care is so huge and many people have to realize american haves to take responsible for themselves. Absolutely. One of the most important manage ability of healthcare is the kind of diets we lead, tobacco use again we saw the battle against smoking for years and smoking rates have come down, why dont see see that kind of reaction against obesity which the rates continue to climb even though the risks are so wellknown . I think in society weve done certain things to make great smoking less pour bl weve raised the cost in taxes of that nature, we keep it away from children to the extent that we can. Food is there, soft drinks are there, its a lot harder to police that. If you take it up a level, as much as were focusing on cancer its something for merck to also be focused on diabetes. Hypertension, cardiovascular issues. Our Research Budget is focused on a lot of issues we face. These are all important areas. I want to ask about news out of washington. There is a lot, the new fda commissioner, whats your take on him whether well see a change in the direction of fda or whether we need to see a change in that direction . Let me first of all say, the news we got yesterday of this accelerated approval is evidence the fda is trying to save lives and trying to get these medicines to many people as quickly as possible. As far as the new commissioner goes, im happy that we have someone who worked in the agency, whos a medical doctor, who understands the general reso to speak and i think he will be working to try to balance the safety and accessible side of thing. Let me take it up to a political level in the presidency, what do you think his administration has meant already and will mean for business generally and for your business in particular . Does the presumed light or regulatory touch help you . Does the possible of tax reform help you . How would you characterize the environment today compared with the last decade . Well, certainly. If we get tax reform thats a very important thing. I think u. S. Companies are at a huge global disadvantage when it comes to tax, having to pay double taxation is not a good thing. We need lower rates so thats a positive thing. I think there are areas where we can streamline regulation but when it comes back to the food and Drug Administration we want to keep the right balance to ensuring new drugs have been safe and effective and trying to speed them up where thats appropriate. I think at the end of the day patients and physicians wants to rely on our fda to say weve studied the drugs and theyd be able to use it in their patience. It seems like tax reform is something people are concern about but theres something going on in d. C. Roogts now. Do you see that being pushed further and further out . Was going there for two day this is week and theres a lot of confidence people have that something can be done by this summer. Were going to have to see what the outline of that package is but its bipartisan code for the fact we need a tax code that help people compete on the global stage and help us have american jobs. How much cash do you have overseas . I cant give you an exact number. I wont hold it to you. Its a substantial amount. More than 20. Wheres its more than that. Heres the reason i ask and people say, okay if you give some kind of repatriation tax break to corporate america, all the ken fraziers of the world are going to do is buy back theyre stock enrich themselves and have nothing to do with growing jobs or the economy, how would you counter that . Were going to put that money to real use of the economy. I think the fact of the matter is when we look at money and the uses of cash what we want to do first of all is redeploy that in our business, whether in our current business, i talked about 500 studies for the drug, thats what we want to do first. If we have access cash we have to put it to use for dividends and purchase. We want to be a business that john rates over a electronic period of time. There have been a lot of headline stories, merck have reported on many of these drugs that are selling at extremely high prices, some that have been purchased by companies when at a low price then they boast the price, you know the story. A lot of people are concerned about high drug prices, is there a time for the federal government to get into this game and help restrain the rising prices of drugs . I think we want to be careful and use marketdriven solutions. In some of those examples you gave of older drugs being marked up, the challenges there there are temporary monopoly around the drugs. The government can help by making sure theres competition. The prices for hepatitis c have come down because of more players. We want to encourage the mark to create competition because competition has always shown the best way to get the best products to people at the right price. Let the generics come in quicker . I think thats an important issue. We have to get more generics to prover, most of the the abuses are older drugs not newer drugs. Thats something the fda commissioner has talked about. Absolutely. Its an exciting time to be in this business. Yesterdays news was welcome nuz to people who suffer from lunge cancer. If we can do something to help people plan to live rather than wait to die thats a wonderful thing. Megan thank you for bringing in the guest to power lunch. Lets get back to the big interview of the day nationwide that is nbc news lester holt sitting down with President Trump. This is his first interview since he fired fbi director james comey. Let me ask you about your termination letter to mr. Comey. You write i greatly appreciate you informing me under three separate occasions im not under investigation. Why did you put that in there. Because he told me. I was it in a phone call or face to face . I had a dinner with him. We had a very nice dinner he asked for a dinner . A dinner was arranged i think he asked for it. He wanted to stay on the fbi head and i said you know ill consider, well see what happens. We had a very nice dinner and at that time he told me youre not under investigation which i knew anyway. That was one meeting what was the other two . First of all went youre under investigation youre given documents, i knew i wasnt under. And i heard stated at a Committee Level i wouldnt. Then during the phone call he said and. He said t once at dinner and twice during a phone call. Did you call him . In one case i called him in one case he called me. And did you ask him are you under investigation . I asked him yes. I said if its possible will you let me know am i under investigation, he said you are not under investigation. Hes given sworn testimony theres an Ongoing Investigation into the Trump Campaign and possible collusion with the runner government. You are the center piece of the Trump Campaign i know im not under investigation, me personally. Im not talking been campaigns or anything else. Im not under investigation. Joining us now is sarah fay began cnbc kcontributor. What did you make now . What did you say of donald trump particularly calling james comey a grand stander and a show boater . Thats a pretty remarkable statement against the nations highest Law Enforcement official. Donald trump again, was one clip but this suggest suggests theres a lot more questions than answers. Like what . It will be particular weird for james comey to tell trump hes note under in vegas. Its possible he said youre not a target of the investigation. You think he did not say that to trump . I mean i trained Law Enforcement official would not say that to something while theres an Ongoing Investigation. One of two things is going on, jim comey acted in appropriate and said something he didnt have, or donald trump misunderstood it, heard something he wanted to hear or putting out something he wants to believe that may in fact didnt happen. Regardless of what the answer to that question is, its going to raisin more questions. This is where we began about an hour or so ago sarah. Its going to raise a lot of questions. You just raised one for me and that is, in that particular moment where the president asked am i under investigation and many comey said no you are not, so says mr. Trump, isnt it those kinds of questionable moves by mr. Comey that cause him to be caused him to be a, such a controversy yall guy going back to the july 5th Conference Regarding the Hillary Clinton investigation. And so its do you know what im saying here . Yeah i do. I think you raise an excellent point. A number of people came out and said i think he should be fired and seniors of both parties said, yeah we thought he shouldnt be in the job. And trump has the right to fire him, he may very well be warned in firing him. The challenge for the Trump Administration is that they have a big optics problem. When youre trying to put forth a robust agenda on tax reform on healthcare, you need everybody in your party particularly and hopefully a few from the other party growing in one direction. Right now were going to spend at least a week talking about the firing of an fbi director that didnt need to occur this week or next week and probably didnt need to occur next month. He could have let the investigation unfold. The best thing for donald trump here now is that a independent Law Enforcement organization or Justice Department come out and say, donald trump had no wrong doing in this. He just delay that had from happening. The narrative sarah obviously on the web and much of the media, with all due respect to any of my colleagues out there, and it may have been 100 true, this firing was time to coincide with the investigation over possible russian talks, makes sense i get it. However, the New York Times seam to implicate that maybe this was more personal. That donald trump take ultimate ambulance to donald trump saying he was somewhat news yans over the ordeal he may have persuaded the election over trump. Do you think this was more of a poke in trumps side when he said that and trump decided, okay youre done . Well, that may be but that was a serious miscalculations on President Trumps part if that was in fact what happened. Look, you dont get to control the narrative and every agency among Law Enforcement on the hill, youve got to play the cards youre dealt every single day. And by getting emotional if thats what happened, and making a rash decision, he has put his administrative agenda in a very difficult position and hes potentially caded a legal issue for himself. If in fact he fired him or was going to fire him or theres emails floating around the white house where the president saying he wants him gone for the runner investigation for example, even the people who may have not been in the know this is going to create a lot of activities because these alleges are likely to grow because of what transpired over the last 24 hours because of mumble statements out of the white house. I find the whole thing behalf lg. We have to leave it there sarah. But it will be very interesting to see how the white house handles any subpoenaed testimony with white house officials with respect to this, or to the investigation into russia and so forth. Its going to be having interesting to see how that plays out. Sarah fay began thanks. See more of the interview on nbc nightly news tonight, 6 30 p. M. In most markets. Heres whats coming up, the financial stockes are falling today. Is now the right time to buy into a few names now that they may be trading in a discount. Ford holding a meeting, is the ceos job at risk. Melissa lee live in las vegas. Melissa lee did you do what i told you and put all of it on red i mean black . Which one brian you got to tell me. Coming up power lunch meets fast money. Ill will joined with a conversation on the sbrn Investment Banking to talk snap. Facebook fell 12 after its Earnings Report of a traded company, so snap is in a buying opportunity. That question up next on power lunch. What are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. Welcome back to power lunch were live at the win oncore in las vegas. Some of the biggest private company that is could go public are gathering here. This is one day after snap, the biggest ipo is earning. Joining us is fast money traders dan nathan as well as guy adame. Guys good to see you. What is this reaction to snap . Do you think its overdone at this point or people overreacting to the first Earnings Report as a Public Traded Company . A couple thing, i cant talk individually about our complaints but they did grow revenue over 200 . Google growing towards 20 per so youre still seeing this big shift of off line dollars come online. I think with that growth its tough to manager any specific quarter but youre seeing a major theme take place. This is a company that went on invest road show in early february late march. So i guess one points i would make is with the stock down 21 the messaging really hasnt change a lot in three months. Whats interesting is the two founders of this company own 28 of the shares outstanding, interest moving up, you had fast money into the fame of the ipo on that pop. Some of the metrics maybe look swishy and you have people coming out of it. I think its interesting that the stock stopped or found support of the 18 which is a dollar above that ipo price at 17. To me you may take a bit to work some people out of name did you you have a good memory, so, do you remember the day dan said something about snap and when it went down to the ipo price it will get interesting . I do recall that it was about a month and a half or so. Do you change your mind . I think its going to change. A lot of what was going on here is some of the deceleration and it had to do with facebook decloning some of the thing. From my 13 and 11 years old daughters they have not adopted some of the stuff that facebook is doing. Would you bid at 1701 or 18 or whatever . I got to bid 202 to beat dan. Last night the stock got down 17. 3. It feels like a lot of it is trading around. Facebook tried to buy snapchat unsuccessfully. Its my contention now facebook is trying to put them out of business and if anybody can do it its probably facebook. I ask bob whats the window of opportunity for snap chot to get this right . Its a few platforms of scale whether you look at twitter, snapchat linked in. Its very view of these linked in. One question we get is how do other Companies Look at these platforms. Does it make sense for the companies to go into the areas. The key for that is can you compete against hem or do you need to buy them . Do you need a digital presence to be that side of scale. Whats the answer for snapchat . If facebook can go out and replicate what nap chat does is there a need for snapchat . I think its safe to say, look at facebook and that quarter they reported they grew their monthly active users 20 . Thats a geographic expansion going on right there. Here you have with daily active uses with a company like snap, 160 million or Something Like that. There may never be another platform that get to 1 billion users. The snap can monotize those 150e thats growing lets say 10. 3 then you have an opportunity. So the bottom line from you two its a notouch right now . If you look at a trade of the stock it will get long for sure. Im with them. Thank you guys. Coming up after a break a company that wants to help you get fit. Power lu lunch will be right back. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com were 90 memberships now from the closing bell. The dows down 16 points. It was down more than 100 points earlier today, and when that was true your heard my colleagues say that was the worse day for the stocks well that was true it is no longer the case. Home depot one of the stocks that was laying on the dow. Home depot reports by the way on tuesday. The stock has already been priced into with the solid earnings. The oil market close rg for the day. Down to Jack K Jackie at the commodity desk. Oil Prices Higher on the session. 34 to 44 smack in the middle of that 5 range everybody has been watching. They told us production came down which we knew but the mark liked it because there was confirmation they were abiding by this agreement. The mark wants to moe whats next, what is to expect for the rest of the year. Thats still anyones gas were waiting for may 25th for that. Back over to you. Just lets get to su herrera with the cnbc headlines. Attorney generalself jegss speaking at a summit on the heroin and opioid crises at the university of west virginia. He said communication can the key to fighting the Drug Overdose savaged problem. In 2015 more than 250,000 americans died from drug over dose. This means our country is losing an equivalent of a baseball statement to people every year of Drug Overdoses. 2 3 of those were doctor opioids including heroin and prescription drugs. Microsoft has revealed a watch called the emma watch, it vie brats in a pattern that zrupts the feedback loop between the brain and the hand. Microsoft satz its not a keir temporary the disease. A nolack splash down from a fan at a carolina baseball game. The foul ball bounced off the roof and landed in the unsuspected fans beer cup. There you go. Its a souvenir and a beer that he wont likely forget very soon. There you go. Get it out of there. Only add a mud cats game. Yeah exactly. And what are the odds honestly. He didnt look like he was trying to catch it. No he wasnt. He was trying to drink it. There you go. There you go. Bringing you all the news you can use ty. We are going to remember that. If people remember nothing else theyll remember that. Sue thanks. You can get a tesla on the roof of your house. A tesla solar panel, that is. The company is starting to take orders. Next, how can ford keep up with its electric car rival as far as the stock is concern. Tackle that on power lunch. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. A used car, some headlines crossing from the White House Daily press briefing, john harwood has them from washington. John. Tyler most of the press briefing was consumed by huk l by sanders saying that attempting to square the previous remarks that the white house communication staff made about why jim comey was mafired when he was fired. Initially it was by rod, he brought it to the president and the president accepted. Now the president had said he decided all along the recommendation was i recall. And sarah huk l by sanders saying yes, but the final straw was the report and the testimony bi biko my last week attempting to say she had a conversation with President Trump and now she could be accurate about the situation. She also did not back away from President Trump telling lester holt that he had asked fbi director comey, at a time when director comey by Donald Trumps account was trying to coop his job as fbi director if he was under investigation. Sarah seiners says i dont see a conflict of interest there and was asked to justify that. She cited legal comment tarts on television. This is something on its face that tells you when you have a potential target of investigation asking a job seeker whether hes being investigated sure sounds like a complaint to a lot of ore people. Thank you very much. John harwood in our newsroom in washington. Two stories from auto world today, tesla is going to take orders for what all Auto Companies aim for, solar panel on the roof. Joining us phil lebeau and james ash teen. James start to you, tell las a st Solar Panel Company that makes cars. These solar panels are coming out, the reviews from what ive soon is theyre cool but expensive. Do you think theyre going to win in the marketplace . I think they made a significant leap forward in terms of being more fashionable and i think from the price point perspective youre going to see it come down. So to the degree that number one, thats something that people want to buy now versus relegated to this earlier environmentalfocused customer our hatred to the power company. What does this do . Does it power the battery that powers the car ultimately that youd never have to plug in . Well lest not jump too far thats what i want today. Theres an energy proposition, the solar panel Generation Energy and Stores Energy in that panel and your house one on its own to a degree and also help to mediator your electricity bills. Theres a another solution where you can go off grid and that can help power your vehicle and son and so forth. For the time being its the merging of Energy Storage and the panel that is provide the cinergys. Theres two sets of math you got to do. You got to do the math on can i afford this or well, whatever it cost ive got to reduce the vall value of my other outlay in heating. Does i work out more for tesla when you do that . I think in general my electric bill i think your electric bill would go to zero, in four or five years its going to be managing your cost in the peak times. In the summer when youre running your airconditioning its not that much spending. Why cant you put a solar panel on top of the tell la car and power the car that way is that an idea . The people that put solar panels on the tesla vehicle, so little amount comes out of it so thats a unique little fun point. It doesnt do enough. Its the same reason you ask people at boeing or air bufts why dont you make solar panels on the top of an airplane. The amount of energy you need to power the vehicle youre not getting out of solar panels. Youre never going to see a solaredpanelled car aside from the where you know where you see in the competition where the guys lying down and it looks like a flying saw serve. With every day, no. Whats going on with source and is mark field in jeopardy . I dont think hes in jeopardy. The ford family has a vested stake, they are the ones who control the most of the shares at that company. As ford goes so go the there were of the ford family. Bill ford the chairman of the company says look im frustrated with whats going on with the stock. Its down 34 since it was taken over in 2014. This is a case where the investors saying yeah you may be profitable but i dont like where your company is right now or the process speck for the future. Very quick thought to james on ford. To get the stock to work they have to monetize or show they can for big data. Tesla as example put 35 million in their pockets. If ford can make that leap they can drive the stock over. Gentleman thank you. Phil, jaimes appreciate it. Coming up back to las vegas. Melissa lee what you got . Straight ahead were talking to the ceo of class pass, that Company Raised a bunch of new forms. Well talk to the ceo about how he plans to disrupt the Fitness Industry. Coming up on power lunch. Welcome back were live at the summit in las vegas. Some of the Tech Companies that could go public are gathering. Were joined by the ceo thats shaking up the Fitness Industry fits. Thank you for joining us. Class pass is a subscription in 39 cities. Its a reoccurring subscription. You can go to any of the studies or gyms in the network. People use it to go to the gym. I feel like in new york city you can buy a bundle of classes per month for a certain am of time and have a subscription that way. Whats the benefit of going through the sup subscription when you guys . 90 of customer goes to classes theyve never heard about before they became a member. The second benefit is aggregation. You can book across 35 different studies. The third and last benefit is price. Were by the waying unsold spots from the partners and were able to package those in a subscription for people who are looking for more affordable. What do you pattern partners get . If im a cycle class what do i pay you . Those guys a doing a great job and they create incredible experiences. Study fitness is a 10 mark. The only problem we solve for them they only fill 30 to 35 of their spots. We go to them and say you guys are at the low of the curve, a lot of your customers are willing to pay you 25 for that visit, if theyre willing to deal with flexible they get a lot of value. So we fill spots they wouldnt have sold. You raised money from capital funds, you do see a path to going public though correct . We havent confirmed nid financing but as a company thats growing fast were having those conversations. When you think about going public who do you think is the Investor Base . What kind of opportunity you have as pose to a snapchat or consumer facing Tech Companies . Im wildly bullish on technology, i worked with microsoft and an investor in several businesses myself. Im particularly excited about class pass because the mark is growing so fast. Millennials are spending their money on experiences and not goods and things. If you believe that people want varietiry then youre going to be attracted to buying class pass stocks because one of the place you can go to book sounds like a broke show chris is it soon . We have no plans to ipo at this point but well explore it its on our radar. Great to have. Ceo of class pass. Brian back over to you. If you missed the big run in bank stocks you might be kicking yourself but dont do that because there may still be a chance to get in. Well find on on the trading nation team. Its all yours. Wow record time. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading Companies Lead with digital. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Lets talk banks, up 25 as a group in the past year, but they have not been above at all since middecember. Max wolf with 55 capital, and erin, whats it going to take to get the banks moving again and viewers not invested, is it too late . No, its not too late. Theres still hopes for the banks in the diversified financials as well. They are struggling for the year. One of the big things, i think, weve seen is concerns about just how quickly we see reforms when it comes to doddfrank, but the fundamentals are looking great. Overall, financials have one of the best quarters ever for q1, over 20 Earnings Growth, and were looking for about 13 Earnings Growth a year, and, actually, estimates have actually gone up for the year. We are looking at good strength and growth here for the sector. All right, max, same to you. Viewers see its flat, think they can get in, what do you tell them . Three structural things moving the space, making it exciting, but also uncertainty. One, theres a big portion of the banks space thats the next travel agent, will be wiped out by technology, making people nervous. Two, the environments been tough from regulatory basis, but its changing. We have the same administration saying, one, we want regulations off the banks backs, and the other we push old regulations an chop them in pieces. Hard to see how the cookie crumbles there, or if it gets smashed, and last piece, we like to trend here pretty good, and we think in the end, theres rest, but the traditional utility bankers are going to do better, even if employees have tough time this part because when Interest Rates rise, some of the online and shadow banks do a good job, but borrowing Balance Sheets are squeezed hard. Traditional banks come back in there, use the same technology, and grab back the market sharement we like the space, but its bucking around by a couple dynamics. Fraught with uncertainty and risk, every day in america. Thank you very much. For more, go to tradi tradingnation. Cnbc. Com. Tyler, you be there lately . No. Thanks for the honesty. Check, please, is next. And now, the latest from trading nation. Cnbc. Com and a word from our sponsor. In determining good entry or exit points, look to buy 3 backs, uptrend lines, prior lows, trade levels, or a moving average of appropriate length for your time frame. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. 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. One crazy night in vegas on fast, taking rare and exclusive interviews, the trump agen agenda, and including a new rule about atm use that could impact the vip sector. Mark cuban asking about snap after endorsing twitter, and wayne newton, not much more to say than mr. Las vegas himself. Brian, it will be fun. Thank you for i dont know the rest. Melissa, thank you. Mike, check, please, hitting snap as well, and snapchat down 21 , the First Quarter, tyler, as a Public Company, not what investors hoped. Founders were paid, investors lose money today, hearing the ipo price, and worse news may be after the run late in the morning, the stock is sliding back to intraday lows. Investors not finding a reason to buy snap. Issue in the first day after it got facebook. Talk about lester holts interview with donald trump completed a couple hours ago. Full interview tonight on nightly news on your nbc station. We have to point out, there the president is answering questions on the comey firing and other topics of moment, and speaking of that, the senate has just confirmed the u. S. Trade representative nominee, robert leithuser a vote of 8614. The u. S. Trade representative has been confirmed. Thank you for watching power lunch. Closing bell starts right now. Hi, everybody, welcome to the closing bell, im kelly evans at the new york stock exchange. Im bill griffeth, snap gets slammed. High ipo profile months ago attracted many at the time, could todays huge selloff scare them away from not only the stock, but the whole market . Talking about that coming up with the stock down 21 right now. Also watching walmart. Look out, because the german grocer has a massive expansion planned in the u. S. I just, by the way, thought that was us doeing the snapchat