Maybe not. Well see if that is on target. And cbs and walgreens very nervous. Amazon may be planning to break into the pharmacy business. All that and more as power lunch begins right now. And welcome to power lunch. Im melissa lee. Stocks having their worst day in two months. Stocks losing gains. It is the dows biggest oneday drop since september. Apple, goldman accounting for about 100 points in the dows drop today. Financials leading these declines this hour, charles schwab, the biggest losers. Wall streets peer index the vix soaring to its highest level since april 21st. Welcome, everybody, to power lunch. Im tyler mathisen. We begin this hour as we have many days recently with drama in d. C. And today it is driving the market down. A memo by the fired fbi director james comey claiming the president urged him to drop the investigation into former National Security adviser, Michael Flynn. Lets go to eamon javers for the latest. Reporter we are told a closed door session but publicly released two pieces of information. They are asking fbi acting director mccabe for any documents or memo that is were prepared by the former director of the fbi james comey, in regard to his conversations with senior white house officials or department of justice officials. So thats one. The second hinthing they are Asg James Comey come up and testify before the Intelligence Committee about what he knows about all of this and his experiences and interactions with the president in both open and closed sessions up on capitol hill. With all of this swirling around today, the president has gone to connecticut where hes giving a speech to the Coast Guard Academy graduates. He took a moment during the speech today to air some grievances and a sense of frustration with how hes been treated. Heres what the president had to say a little while ago. Look at the way ive been treated lately. He especially by the media. No politician in history, and i say this with great surety, has been treated worse or more unfairly. You cant let them get you down. You cant let the critics and the naysayers get in the way of your dreams. Reporter the president said to the graduates who have to fight, fight, fight, put your head down and keep on going when youre under pressure that remark got a cheer from the crowd of graduates there in connecticut. Meanwhile, weve also got Vladimir Putin stirring the pot here in washington, d. C. , in regard to the president s meeting last week in the oval office with senior russian officials here in washington. During the course of that meeting the president is said to have passed on sensitive intelligence that the United States got from a foreign ally. Vladimir putin saying, no, thats not the case, and he has a transcript or record of the meeting, and hes prepared to release it. Here is what the president of russia said. We are ready to submit to trump to the u. S. Senate and congress if, of course, the u. S. Administration would want this. And, tyler, i can tell you my sense is that the administration would not want Vladimir Putin to release any transcript or anything that he has from that meeting in the oval office. They dont want the impression here that the president is dependent on president putin for political assistance. Back over to you, brian. All right, eamon, i have a feeling youll be on tv from now until, well, forever. To the selloff on wall street team coverage, bob pisani on the nyse floor, dom inic chu, the rally. Lets begin with bob pisani. Bob, finally the volatility many have been waiting for. Reporter a little bit of it. Well see if it lasts, brian. Look at the s p. Were five points off the low. Importantly selling basically stopped once we hit the european close. Volume dropped off as well. Heavy volume etfs, a lot of people complaining about the volume, but today in the biggest etfs, spyder, the s p and the russell 2,000, big volume. Other e it tfs, european like the emerging market etf eem not so big volume. Bigger than normal. This is clearly a u. S. Based event. Secretario sectors, 2. 3 . Thats a problem. And, of course, defensive moves. So utilities are up, gold is up as dollar weakness is helping xhcommodities but not helping commodity stocks here. Low volume stocks, low volatility, excuse me, stocks like colgate, duke, kimberlyclark, dominion. Whats the market risk . Weve seen lower geoPolitical Risk particularly around the french elections why the markets are holding up. The Political Risk is now rising. We said this before. The markets can withstand some talk of the trump drama but when you Start Talking about obstruction of justice or, indeed, when you Start Talking about impeach, that is a different story and thats what the markets are reacting to today. Guys, back to you. All right, thank you very much, bob pisani. The one sector fueling this rally now showing some signs of weakness, dom chu is taking a closer look. The argument the biggest sector of them all, technology, has been whats propping up the market these days, a handful of very mega cap names out there. If you take a look at some of these etfs, bob was showing you the interday performances, the past year or so, you can see the outperformance they have doubling the markets returns in that time span. Now take a look, also, at maybe some of these signs of weakness. Mega Cap TechnologyCompanies Like oracle, for one, right now trading to a point where its still up 12. 5 but 1. 5 down today means its touching that 50day average price so does that mean some of the bigger names could be due for a bigger fall . That remains to be seen. Oracle, one stock to watch for sure. If you take a look at the biggest stocks in the land, apple is still up 32 year to date doing a lot of heavy lifting. Alphabet shares up 20 . Microsoft up 10 . The one thing these four stocks have in common, theyre all within 5 of record highs just to put in perspective not panic yet here and take a look at this one more for the broader look, the s p 500 overall, around half of the stocks on the s p trading below that 50day average price, something certainly to keep an eye on. Dominic, thank you. Is wall street worrying about the trump agenda and could this be the start of the slide some have been expecting . Joining me now is the managing director of investments at u. S. Private bank, client reserve. Thats a title, david. U. S. Bank private client reserve. That was the hard part. I thought your last name was going to be hard enough. And portfolio manager. Gentlemen, for weeks now there have been little tremors in washington and the mark has mostly ignored them. Not today. What changed . I think are we allowed to say the i word, because weve been afraid to say it, i think, for weeks now, and it is out in the media. Impeachment. Ill go ahead and say it. Just say it, please. Pull it off like a bandaid. Thats something weve been avoiding talking about. Its percolating in the back of peoples minds. It is actually being talked about today. So to answer your question, i think thats whats different. Thats whats driving the market today. Is trump the biggest risk you worry about, the trump administration, lamar, and the ability or lack of ability to push through an agenda that is very business friendly, very popular among investors . Yeah. As we look at it, we do think the agenda is very business friendly, but the big concern there is the market seems to be giving it 100 chance that its going to go through. Today weve hedged off at 99 . Still weve seen huge gains since President Trump was elected. That makes us a little nervous. Generally speaking were more focused on individual names because theres a number of names that we hold that wont be impacted meaningfully no matter what happens. Well get to those in a minute. What should i do with my money today, david . Well, you know, if you asked me that question yesterday, market insurance yesterday was very cheap. We were seeing at the money puts cost iing you less than 2 whic is a very low number. But Going Forward, i think volatility is going to rear its head. Im not a technologies but were looking we were looking at the 50day which i think we broke through today on the s p 500. And youre going to find a stronger support level perhaps at the 100 day and then the 200 day moving averages. If you if you are a longterm investor, buckle up. This is going to be bumpy, but fundamentals are still there. Weve had a lot of shiny objects that have distracted us over the past couple of weeks. Thats the whole story i think, lamar. Thats the key issue seems to be and im not saying this is a Massive National story obviously but for our audience, for the Business Community, for the investment community, can we connect the dots between whats happening in washington and whether or not corporate earnings and the consumer driven economy are going to be negatively affected . Is somebody not going to buy a house or a car or a couch because of whats happening in d. C. . I dont think so. I agree with you. I do think earnings, cutting taxes on businesses will have a very direct impact on earnings or wont if they dont get cut. So thats direct. At the end of the day, the consumers, the consumers have shown a lot of resilience and have been strong, people may be upset or pleased with whatever is going on in the white house but thats not going to change. Its like apple today. Apple is knocking itself about 50 points off the dow. Are people going to buy fewer iphones around the world . I think for investors if you are up by that much for the year, if youre thinking that youre going to take profits, take profits in whats up. I would like to call my wife and tell her not to buy that couch. And he didnt buy an iphone. Your clients, are they selling . Did they call you that morning, oh, gosh, the i word, sell stocks, david . No, we havent gotten that level of fear or panic yet. I think the next step is to see whether or not the comey revelation is factual. That is the next step in the process. All signs point to it being factual, but weve had some false alarms so far. If it is factual, that will be the next step, and then we need to Start Talking about how does it play out. It assumes what comey said in the memo in terms of his depiction of the conversation is actually an accurate depiction of the conversation. It could be a he said he said scenario. Regardless of what it is in this sort of uncertainty when people are, in fact, jumping to what would be the worst Case Scenario, are there areas you like small and mid caps. Why would you stick with those areas when they lack the broader markets and on a day like today they are feeling the hardest drawdowns. Thats exactly why because we view it as an opportunity. Generally when we see good names, particularly good stocks weve followed for a long time, were conscious of price. So we may love a stock but the price just isnt compelling. We look to add to those positions or initiate positions in stocks. Have you done that today . We have added to positions. Have you done it today and to what positions . So were adding to a Company Called 2u, an Online Education provider that partners with top tiers, yale, northwestern. We added to howard hughes, which is actually having their investor day. Big ackmans pick. Did you like it before ackman or did he convince you. He certainly did not convince me. We dont follow him around. We do think hes right about this one. I did a tour of the south street seaport yesterday. That will be an incredible investment for the company. Were going to leave it there. Thank you, david, lamar. Broad markets are down today but stocks of companies that are seen as particularly benefiting from a trump gop agenda are down even more as investors begin to fear getting any business friendly legislation passed this year may now be over. We built our own trump portfolio. Companies in sectors like banking, stras, health care and more. And as a group those stocks are down about, i dont know, 1. 5 right now. The big decliners in finance bank of america, Goldman Sachs, jpmorgan chase. Asphalt and road related companies all down. Most of them provide aggregates to make roads. U. S. Steel down more than 4 . And private presideison operatoe also down significantly. So, melissa, even on a down day the socalled trump stocks are taking an even larger hit. Which is interesting because a lot of these stocks have actually erased all the gains that they made since the election anyway. Right . So theyre feeling even more pain on top of that. A lot of skepticism about this agenda. Meantime, coming up, amazon may be getting into the multibillion dollar pharmacy business. How worried should cvs and walgreens be . Todays bright spot, target, rallying on the back of its earnings. A rare bright spot in todays session. Is a turnaround on at target . That story is next. Whether youre after supreme performance. Advanced intelligence. Or breathtaking style. Theres a cclass just for you. Decisions, decisions, decisions. Lease the c300 sedan for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Welcome back to power lunch. Amidst market selloff we are seeing weakness in the u. S. Dollar. The dollar index is at 97. 61, down by half a percent. It has wiped out all of the gains it has made since the election of President Trump and were seeing the biggest bids towards safety currencies such as the yen and the swiss franc. Target shares up more than 2 after beating street estimates and the top and bottom line. Still, a tough year for target. That stock is down more than 20 . Investors are frustrated. Will that all turn around . Here to look ahead to walmarts results tomorrow, joe feldman, john brick with Morning Star Research services. John, i will begin with you. Target, the numbers look pretty good. The stock has been a disaster this year. Do we expect target to meaningfully turn around and make investors money once ag n again . Yeah, good afternoon, thanks for having me. We dont really think so. We still think there are some fundamental reasons for the company to be held back. Well start with their mix at 16 or 20 of sales. They need a bigger sustainable traffic driver Going Forward and, secondly, we think that most of their merchandise is higher margin and found online which carries more price transparency, and so we think the very nature of their margins and what makes up their comps will be pressured Going Forward. Joe, the quarter was pretty good. Are you convinced the target turnaround is in force . Yeah, i think its still early days. Its great to see that they had very good numbers. The results were better. Sales picked up a little bit. I think were at the very beginning stages of the turnaround, a lot of investment spending that will happen this year. Talking 7 billion in terms of Capital Spending and a billion this year in terms of operating expense. So were still early days in this. I think there will be a little bit of volatility as this turnaround progresses. Joe, i was talking to an analyst this morning and he specifically said about the investment he wanted to see if they would invest in bringing their prices lower. Do they comment much on the Conference Call about it and how confident that they will be able to compete especially against the likes of not only walmart but now aldy. They did talk about it a little bit that they are focused on price investment and a lot of price investment coming on the food side. But to your point i think it will take some time. Walmart does such a good job and walmarts been putting the pressure on as well just by lowering their own prices and kroeger brings prices down and theyre all getting ready with legal coming. Its going to be very competitive in the space, and i think target will need to do a lot of work to continue to even play catchup right now. John, is there any hope at all . If you take a look at past retail turnarounds you invest when the days seem pretty dark. Is it just that . Is it just that the turnaround is way too far off . Yeah, i mean, we do agree firmly with walmart lowering prices, to compete for those customers before they make a big statement in the u. S. So we think the retail environment is not going to get any better. We think target is transitioning to the online model. Theyre third so amazon is first. Walmart was two years ago second. And now target is playing catchup. And theyve talked to having three years, 7 billion in investments. Its early innings but in third place its hard to see them make up the traffic there. Joe and john, thank you very much. And for our audience who heard joe mention ldl, its the new alde, the Discount Store chain which is opening up its first stores in the United States in virginia, north carolina, and South Carolina starting very soon, and theres a concern that theyre going to drive a new wave of price cutting and deflation in the grocery space. If youre invested watch out. Speaking of food, it is the good, the bad, and the ugly in todays trade and theres plenty of ugly. A naturally aspirated 5. 0liter v8 engine. A 10speed directshift transmission. 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, everybody, to power lunch. Time for the good, the bad, and the ugly. A whole lot of ugly out there so you can take your pick. Jackinthebox, the stock is up a little more than 5 . The fast food chain beating earnings estimates and may spin off its Mexican Restaurant chain. Disney downgraded there. Down about 1. 5 . Soft ad sales as well as continuing subscriber declines at espn. And yesterday it was the top stock in the s p 500. Today not so much. Down grading saying a deal with intel is unlikely. That stock the top pick of the stock giant in our draft. Good day yesterday for charles. Not so much today. Melissa . Oops. Household debt topping 2008 peak levels. Are we back to our old ways, and should we be worried . A closer look. Plus, larry kudlow weighs in on what President Trump needs to do to get his economic agenda back on track. Hello, everyone. Im sue herera. Protesters and supporters of President Trump gathering in connecticut ahead of his speech at the coast guard commencement ceremony. Representatives of the city and the secret service met to discuss security plans ahead of the president s arrival. The demonstrations remained peaceful. In his morning briefing, House Speaker paul ryan urging lawmakers not to jump to any conclusion about President Trumps firing of fbi director james comey and new allegations that have surfaced. What i told our members is now is the time to gather all the pertinent information. Our job is to be responsible, sober, and focus only on gathering the facts. That is what congress does in had conducting oversight of the executive branch. On a light er note you can call these two the billion dollar couple. Forbes estimating that jayz and beyonce are worth a combined 1. 16 billion. Of that jayzs pour tune is about 810 million. Beyonce has amassed about 350 million. Jayz just signed to partner for concert events. Have variety reported that alone was worth 200 million. Thats the news update this hour. Back to you, brian. All right, sue, thank you very much. Big losses on wall street are your top story on cnbc. Stocks having their worst day in two months. There is a little green out there, some dow winners, defensive names, united health, cocacola, p g, travelers, and walmarts earnings are out tomorrow. Lets get specifically with a market flash and dom chu. Colgate palmolive, shares jumping about 4 . This after a New York Post report saying the companys ceo signaled he might be willing to sell the company for 100 a share according to them citing sources that price tag would represent about a 33 premium from current levels. Now they are currently the best performing stock in the s p 500. Well see it stays that way or drags up the rest of the consumer staples. Back to you. Thanks. Concerns in part certainly about the constant distractions coming out of the white house. So will this derail President Trumps economic agenda, a question we keep asking day after day. Cnbc contributor larry kudlow, chief economist at moodys analytics. Mark, let me start by asking you that simple question. It would seem to me that one of the things President Trump has done so far is create a spirit of optimism in the Business Community. To the extent that the chief salesman of his policies may be compromised or sidelined, does that affect that level of confidence in the ability to get things done . Well, i would put a finer point on it. I think hes cheered stock investors because hes talked about lower Corporate Tax rates, hes talked about less regulation. He has business executives, too. The level is higher. Well, im not sure. Business executives are happy yerp when they see their stock price higher. Its most ly stock investors ar encouraged by what they have heard to date but the odds of getting substantive tax reform, the odds of getting substantive deregulation, the odds of more m a ak it tift, all that have is much reduced given whats going on in washington and all the other things that are going on. I think investors are slowly coming and steadily coming to the realization that theyre not going to get what they thought they might have gotten a few years ago after the election. Larry . And thats what were seeing in todays actions. Look, i dont want to jump to any conclusions. Ive heard a lot of things. Ive been watching cnbc today. The sky is the limit for hypothes hypotheses. Right now on the ground i think mr. Trump, president prum , loose lips sink ships. With respect to obstruction of justice, now im hearing calls for impeachment, people are telling me the Republican House will impeach a republican president i think are nuts. Absolutely nuts. Trump says i hope you can let this go, says this to comey. Comey comes home, writes a memo to himself, fine. Thats what any good lawyer would do, fbi would do. Why didnt comey instruct the department of justice, why didnt he say he had an obstruction of justice charge this is a section of the u. S. Code, 184 and also 281361. You must, if the officer must instruct the Justice Department youve heard an obstruction of justice whether its from the president or any officer on down. And if you dont, if you dont, you are, you, in this case comey, criminal charges. So what i want to know is thats comey. What if theyre both thats the thing. This happened months ago. Comey suddenly comes forward. So im just not clear about this. Mr. Comey will testify next week. Can i make a point . The fact that larry that larry just spent the last couple of minutes talking about murkiness and has to hear this and has to hear that and didnt mention tax reform, didnt mention dodd frank. Thats the point. Were not going to get to that. Were not going to get to it because were going to be stuck on this. Im making a different point. We i dont know who we is look, i dont think any of this helps the tax cut. I dont. I dont know that it kills it. I get that. Theyre very far along. Theres a working group, moderates and conservatives, ive spoken to several members. I will not rule out the tax cut but its not helping the tax cut, and let me add to this. There is no yet there is no actual legislative print from either the house or the senate on the tax and that tells you something. Thats the thing, though, i agree and disagree. Ill tell you why on either one. Ive spoken to three people in the last 24 hours in washington who are in or around policymaking. And ill be there tomorrow. Here seems to be the thesis which is trumps agenda, tax reform, whatever, may not get done. The gop has its own agenda and what ive heard and what people ive spoken with in the gop have said were going to do our own thing, get our packages done. But do investors care how it gets done as long as ultimately the sausage is made . This tax reform is complicated. Congress has the law making power. You know that. At the end of the day you need leadership from the executive branch to get something through congress when you only have 52 votes in the senate. I have a really hard time here is the other complicating factor. Two other ones. By early october that has to be raised and a 2018 budget. Those things will be really hard to do. You will muck up the tax reform or doddfrank. Tax reform, you need people there doing very detailed complicated work. Hes the intellectual driving force behind tax reform but do you think he will get a hearing anytime soon . Probably not. Your hypothesis is very interesting. The hypothesis is very interesting because republicans know and this is the note from dan clifton, they know if they dont get a growth up spurt palpable, theyre in trouble in the midterm election. It is in their interest to get something done. Mr. Trump can still ably assist this. I just dont believe hes going to court for impeachment. So that all can go on. We are at this point we lack certain knowledge but i can throw in the towel. Consumer confidence from businesses have all shown a trump bump. Weve seen better investment spending. That may have to do with the trump bump. Now i think that trump needs to go out into the boone docks and start selling tax cuts, growth, and wages. Thats what poe cuss groups and are not focused on the beltway and trump needs to go out he gave the president a dminus hold on, guys. Just a minute. Larry, mark, stick around. Steve liesman joins us with a report showing Household Debt. Maybe a sign of confidence, maybe not. The new York Federal Reserve has a report today that shows Household Debt across the nation hit a dubious milestone. We finally surpassed the peak of 2008. 12. 7 trillion of debt for the households. While there are some worries debt is different from 08 and that led to a financial panic. So here is what we know. Mortgage and auto debt and Student Loan Debt were all higher. Debt per capita well below the peak and default rates remain low right now. Larry is emphatically gesturing. Mortgage debt has fall en by fie Percentage Points in 08 in part because fewer own homes or have defaulted on debt. Auto loans up three Percentage Points. Student loans up six Percentage Points. Another gesticulation by layrry. 90 days delinquent remains well below the level of 08 and substantially below the worst levels. And a share of income way down. Way down. I will say one thing theres confidence and prudence at the same time. One thing we do see on the data, larry, only the most credit worthy are getting the loans. Its a problem of regulation. Its another problem thats out there. You can see right there that only the most credit worthy. Isnt the problem that student loans, the delinquencies are higher. Low tens and 11 . Thats a problem. So young people are being saddled right now. They will never get out from under it. Such a disadvantage. I know. I know. Hey, subprime auto debt has been very strong. So im not sure i understand this statement that lower score, lower income households on mortgages, mark. I showed a percent of mortgages by fica score and you see only those if youre below 760 youre getting hammered. This is not a bad thing. Its the ageold debt question s. Debt a good thing or a bad thing . Peter schiff all the time. You have a profits bump unexpectedly helping the stock market, right . Profits are the mothers milk. Youve also had a little bit of a Business Investment bump. The only good thing. This is the thing that sully accosted me in the hallway today. Its not booming but its bumping up after a twoyear recession that could be participate of the confidence effect from mr. Trump. Almost entirely energy. So energy is hammered. That was all energy. Two very small pieces of the puzzle. Tech also you can say one thing, were seeing a wee bit of a turnaround in overall production and manufacturing. Thats important, all right, because we had a manufacturing recession nearby. They are not going to hire people and start laying pylons for new factories until factories until the policies are out there from the administration. He needs a plan first. That one page is not something he can go to kansas. Theres a lot behind the one page. Going back to the original point even all thats going on in d. C. If it hurts just a little bit the effort of the administration to pass tax cuts, thats another problem. I agree. Weve got to go. Lets save this for another day which the debate shall be as opposed to can trump help the economy, can trump not screw up what is a good economy. Thats the flip side debate we need to be having. Give me business tax cuts. Large and small. Whats coming up on power lunch thank you, mark, larry, and steve. Amazon planning to break into the multibillion dollar pharmacy business. Should cvs and walgreens be worried . Shares are lower. First to Rick Santelli for todays bond report. Rick . Reporter thanks, melissa lee. One week shows you lots of activity. Here we are doing a beeline. We failed last week to get above unchanged on the year. Now were giving that 2. 17 low close from april a run. See the way its collapsing. Yes, theres relative value trade but a sprint right now in terms of dropping yield. The bunds just barely breaking a sweat but following. If you look at one week of the dollar index theres the market to pay the closest attention to and maybe the area to pay even closer attention to within that spectrum is the midair yeah right around it at 97. 06 from early november. That is the bottom that is left before the dollar index potentially makes a beeline for what looks very comfortably on the charts around the 96 area. Hey, dont touch that dial. Power lunch will return. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Somewhere, likely right now in boardrooms, executives are likely having meetings. Meetings where nerves may be just a wee bit frayed because cnbc scoop says recent moves by amazon. Com says they will amazon the pharmacy business. Our new health and Technology Reporter for cnbc. Com joins us now from san francisco. Welcome and good to see you on the show. Great work on the scoop. What are you seeing amazon doing that brought you to this conclusion in your story . Well, its amazing to think that some day soon we could see amazon delivering drugs right to your doorstep just as they do with Everything Else and in many ways this makes this a very obvious move for amazon but after many years of toying with this idea im hearing from sources that amazon is now hiring a gm to lead a business so they can strategize exact ly what theyre going to do to break into the pharmacy market. And as were already seeing with the stock moves today there are a lot of established players that are threatened by this. Whats a barrier to entry, christina . I would imagine its not as easy as just having a Logistics Network that would enable an amazon to enter the business. Well, like i mentioned, there are certainly established players on all sides of the business that amazon would need to compete with. They would also need to hire the right out of industry because amazon is very stocked up with tex experts but need to devise a strategy and then there is regulation and compliance. So many hurdles to jump through. These are, christina, heavily regulated businesses, number one. Number two, when you are a part of a Health Care Program as we are here at comcast, our ultimate provider, our pharmacy is cvs care mark, they have a big say in whom we use for mail order product fulfillment. Absolutely. And amazon, according to my sources, is considering building its own pdm internally to serve its employees as amazon is a selfinsured employer. And from there you might speculate that it could be a way for them to expand that out to get into the pbm market themselves. But, you know, who knows what theyre going to do. Its possible they partner with existing players. They might crawl before they run or where they could go full throttle into this guns blazing. Only time will tell and ill keep my eye on this the next few months. All right, christina, thank you. That cnbc report on amazon. Cvs, riteaid and walgreens may be trading lower. Managing director of health care, technology and distribution joins us. Robert, great to have you with us. It would be a whole lot easier for amazon to buy as opposed to build. Is that a possibility in this sector which has seen consolidation . Yeah. Theres a couple ways amazon could really go here. Weve always lived with the theme that much easier to the value created here by managing the overall drug cost trend. If youre dispensing drugs, thats less value added. So i find it hard to see why amazon would seek to add to 70,000 pharmacies out there already another pharmacy capability. Theyre already getting the profitable front end portion of the business which has come away from cvs and walgreens and the board meetings probably happened ten years ago, how do we defend our pharmacy share and youve seen the acquisitions with cvs buying care mark. Walgreens also seeking to consolidate the market. And theyre pushing forward with Broader Health care vat jis str medical equipment and oxygen and specialty. I think deals are possible here but on the pharmacy side, not clear to me what they would benefit from. Looking to be that pdm provider, certainly acquiring that scale thats important to the business, thats the way to go. Right, right, right. Effectively, amazon already has a front end, quote unquote, part of the business wrapped into whatever they sell. Theoretically, logical. In terms of costs, people always, not always, often recently pointed to the pbms as a big source of cost for rising prices of drugs. Do you think a player li eer lim somme could extract those costs out or pdms, are they working fairly now . Seeing lobbies pointing at fingers at the middlemen taking a bite out of economics. The bite theyre taking, pbms and others in the channel pass on to customers. I think that model works. For amazon to get to involved is less a cost exercise in terms of building something. Takes little capital to get into pbm business. The problem, couldnt scale it. Not relevant to a payer without the volume ahead of time to leverage with manufacturers for better rebates, manufacturers for better pricing as well as retail pharmacies for better rates. Its not the cost issue but the size and scale pbm brings to scale driving the economics for that customer. Robert, leave it there. Thank you very much. Credit suisse. And coming up before wall street calls you need to hear about today. Your daily dose of street talk when we return. Usaa gives me the peace of mind and the security just like the marines did. The process through usaa is so effortless, that you feel like youre a part of the family. I love that i can pass the membership to my children. Were the williams family, and were usaa members for life. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise even on a heavy d. C. News day like today we are, would go hard to find you investing opportunities, our daily dive into wall street called street talk. Melissa, pick it up. Red robin, gourmet berger, better than expected earnings. Outperform rating raising the price target by 10 to 80. Short squeeze, why the stock is up 19 . Short squeeze could continue until the Company Analysts say next tuesday. Short interest, by the way, about onethird of shares outstanding going into the a third . A third. One of the most heavily shorted stocks in the country. I was shocked to buy it, but that explains the huge move. No wonder red robin is rocketing. Second stock, sun trust raises price target by 10 a share saying Competitive Position strengthened by strong data for sentara, the heart valve especially optimism from europe. Edwards first entry into that speck space. Results suggesting strong likelihood for market share capture over time. That new target on ew is about 15 up side. Connick ocnicoco phillips. Aggressive divestitured. Faster than expected. Free cash yield over 10 in 2019, conoco could break even with brent at 43 a barrel. Goldman sachs top oil, commodity guy on the program in about seven minutes. Take a round, last up, smaller cap call of the day. This one atwood oceanices. Atw. Very, very beaten down offshore driller. However, recertain firms upgrade to focus list noting the driller trades at the largest discount at their asset in part of what they call liquidity runway. A Balance Sheet. Right . They say keep an eye whether they can extend credit facility, 850 due. Also oil prices go down, may make it harder to extend that credit facility. Still after 30 drop, melissa in a year, rear search says enough is enough. Upgrading to folk es list today. Thats for street talk. And according to jack welch, giving the president high grades for policy. Low grades for communicatings what the president needs to do to get his house in order and agenda back on track, next. Good day, everybody and welcome to the second hour of power lunch. Im tyler mathisen. Here is what is on the menu. No lunch, continuing to watch a major selloff for stocks. Dow down about 290 points. Nasdaq off about 2 on pace now to be the biggest selloff since last september. The markets fearing the newest revelations about President Trump, that they might derail or at least delay his tax cutting agenda and more. Even some republicans calling for a big investigation now. Is his management style just not right for the oval office . And gold and oil both moving higher today as the dollar moves lower. Is that where you should put your money now . Well talk to goldmans top commodities person. Power lunch, hour number two, part deus, begins now. As you know, a selloff on wall street. Get a closer look at what is moving. A lot of it on the dow at least driven by Goldman Sachs and apple accounting for roughly 100 points of decline. Regional banks a big hit among worst performers on the s p 500. Citizens america, suntrust and more sharply lower. Colgatepalmolive rising after the New York Post set willing to sell the company if could get 100 per share. Importantly, a couple points or so off the lows of the session for the s p 500. Get now to bob pisani before the new york stock exchange. Bob, down there all day. I heard you this morning, excellent stuff. Talk more about what the trainers down there and folks youre talking to are saying why this market took so many punches . Right . Like the rocky of the stock market. Finally last night, seems to have knocked the market to its knees. Why . Because this is different. The markets willing to put up with a certain amount of strange trump tweets, but that were not actionable. This is actionable. Talk about obstruction of justice, impeachment, serious matters. Actionable offenses and whats knocked the market down a little and i think rightfully so. The important thing, weve been stable since the european close about 11 30 here. Volume dropped off a little. Weve seen interest moves today. 31 declining to advancing. The way its been most of the day. Breadth, i mentioned, 31. Borderline heavy volume. Important thing, volatility. Threeweek high. Not dramatically elevated. Heavy volume in etfs. Diamonds, Dow Jones Industrial, and russell 2,000 etf all having heavy volume. Not the european etfs and emerging markets. Lightening up on the u. S. Sectors. Talked about banks being weak on the tenyear yield weak. Tech high beta group thats weak here. Defensive names like utilities and gold doing better. Of course, the dollar hitting lowest levels in several weeks. Low high volatility. Etf, high beta, down. Splv basically flat. Commemorate the 200th anniversary of the new york stock exchange. There it is. Big Party Getting on down here. I know its a down day, but big day for institution, a big institution for the United States. Cutting the cake, ill have a piece myself. Guys, back to you. Happy birthday to the nyse. Thank you, bob. Bertha coombs tracking tech stocks from the nasdaq. Tyler, nasdaq seemed heavy volume particularly the nasdaq 100 on pass if we continue for the largest volume day of the year trading to the down side of what could be the largest decline of the year. Were seeing small caps among the biggest losers, but its really the big caps, the chips that are the biggest decliner, and that is also spilling over to the very large caps like apple, the mehta caps, amazon, the biggest gainers this year. Today they are responsible for about twothirds of the decline on the nasdaq 100. There are few stocks youll find in the green here. Bucking the trend including jackinthebox after better than expected bernings and saying it may look to spin off its qdoba unit. Dish on reports working with amazon on wireless and ehealth getting a boost. Cms and medicaid actually new rules that make may it easier for ebrokers to seen people up for obama plans for next enrollment period. Back to you. All right. Thank you very much. Stock investors, the worst day since last september. Capturing americas attention. Its a national story, should it impact your money like it is today . With us, larry mcdonald, cnbc contributor, and jack avlon. Jack, you know, first, we are the consumer news and business channel. Stick to what we do rather that straight politics. Will all of this drama in d. C. Negatively impact consumers or business spending and thus earnings and thus should affect the stock market . Ultimately, probably not. In answer to your question. But we also have to look at the market itself, and when you look at stock valuations through the lens of earnings and revenues, we find that were pretty far extended. We were over our skis. So if it wasnt perhaps this news, it could have been something else. I just think inning respects overvalued market is looking for a catalyst to try to correct and this is certainly as good as any. Interesting, jack, about it, i understand why some of the trump portfolio stocks we showed earlier, infrastructure names, things directly tied to the stuff the president wanted to do, i understand why they are selling. The fact that apple is down a couple percent. Is anybody not going to buy an iphone because of this . No. I dont see it necessarily impacting consumer behavior. In fact, in many respects you could argue that even if you know it becomes president pence, you could say he will likely carry the mantle of policy anyway. Probably the biggest beneficiary in some type of an exchange like that will be mexico, which by the way is already up nearly 20 year to date. I do think already going into todays trading session, theres been a healthy degree of skepticism among investors that a lot of these policies that weve heard about arent necessarily going to come into signed into law anytime soon, and you know, were seeing a fair amount of skeptical trading even going into today. Larry, it occurs to me an awful lot of people in washington probably ought to take a deep breath, chill a nice glass of kentucky bourbon and take a pause. Maybe investors are going toofthat today. React to what jack said and what you see happening over the next several months. Is this an opportunity . A good time to invest . A time to just let your hand ride . Or what . Well, theres about a 4,000 dow point premium in the market now based on the trump agenda. Tax cuts, infrastructure and the like. And if you depending who you talk to in washington thats a 20 move, you think . 4,000 points is 20 on the dow. Yeah. Thats worse Case Scenario. Maybe say 3,000 points on the dow. Less aggressively, but net pushing down to 2,000 . No, no. 3,500. But net, net, the trump agenda has been almost fully priced in here to the market, and if you look at i was on capitol hill last week and if you talk to people, there may be like 75 to 85 legislative, true legislative days left in the year. So if we get bogged down in an investigation, impeachment is not happening. Theres plus 47 in the house on the gop. But if it gets bogged down because of investigations, that puts the entire agenda out until next year and, remember, one thing. Take one thing from this interview. After march of next year heading towards the midterms theyre not going to vote on tax reform, health care and the agenda. Push everything out to 2019. Thats the problem. The entire growth agenda gets pushed out. Why theres an air pocket in the market. Can i just address a couple of points and let larry made. I agree with a number of them. If you look at how investors are behaving so far, particularly year to date. They actually come up to the four ms. Mexico versus the u. S. Well, you know, if everyone was so concerned about ripping up nafta and imposing sanctions on mexico, you wouldnt see mexico up 20 . Munies versus taxables trading roughly in tandem. Investors worried about personal income tax rates rolled back, you would see munies back. Theyre not. And midrange, a tax rollback, thought wed get that and lower Corporate Tax rate, midcaps should outperform large caps theyre not. Mlps. If we going to have a massive infrastructure build in mlps with u. S. American steel and everyone else, mlps should be doing better than they are. I do think going into today that investors were pretty much cautious that, you know what . With all of these headlines and e Everything Else already discounting. Yeah. I think a lot was already done. I just think, like i said. Im really focused more on valuation and saying, you know what . I dont think the big pictures changed that much but investors are finally taking a look at, what am i willing to pay for earnings and revenues . Even if they are growing. Jack and larry good discussion. Guys, thank you. Thank you. Lets get to the latest developments on the drama in d. C. Elon is on capitol hill for us. Tyler, the senate Intelligence Committee is requesting documents related to that conversation between former fbi director james comey and President Trump, and in which the president asked him to let go of that investigation into Michael Flynn. The committees also renewing their request for james comey to appear before the committee and testify in public. Now, even as all of this fallout from the news rippling across capitol hill, we are still seeing the Administration Try to push its economic agenda. Treasury secretary Stephen Mnuchin and market director on the hill all day today meeting with key lawmakers on the issue of tax reform. They met with the Senate FinanceCommittee Earlier this morning. Both republicans and democrats on that committee and they met with the moderate tuesday group in the house, and at 3 30 p. M. This afternoon are scheduled to meet with Republican Leadership and that includes House Speaker paul ryan as well as Senate Majority leader mitch mcconnell. All of this comes before the house is scheduled to hold its first hearing on tax reform tomorrow. Mnuchin on the hill tomorrow again as well. Keep you posted in all of those developments. Thank you. Meantime, take a check on shares of johnson and johnson down a half percent. And the analysts, see what they say. Meg . Melissa, the focus for johnson and johnson, its pharmaceutical business, the biggest of its unit counting for 47 of its reserve knew last year. Over the last five years introduced 12 new compounds, 11 of block buster. Billion dollars plus. Were really going to talk about today how excited we are for the future. 10, just mentioned, between now and 2021. We think weve got about 50 line extensions 11 have a half billion potential. Compounds in cardiovascular disease, immunology, and really make a difference in patients lives. Saying the Company Plans to introduce more than ten blockbuster drugs by 2021 or at least file for approval. Hoping now for approval of two drugs just this year and the Company Rolling out a list its calling potentially mega blockbusters catching analysts by surprise. Drugs to have peak angle sales of 4 billion, drugs darzolex and a drug for psoriasis and other disorders. And a blood thinner and invega sustenna, and invoecana, a diabetes drug that got a risk put on it. Meg, thank you. Why does what President Trump have to say, may have to say, to the Russian Ambassador or james comey matter so much to the markets . Because stocks are counting on tax reform and maybe Even Health Care reform. Do the distractions jeopardize all that . Power lunch will be right back. Markets hit hard close to session lows in the s p 500 now. Dow down more than 200 points following latest scandal out of washington. Biggest question, whether the president can get his agenda back on track. Former ge ceo jack welch joined ud earlier in the day to discuss the president s management style. My view is polarized. I look at the president , and i give him an a on policy. I give him an a on appointments. I love the people hes picked. I give him an a on morale in the Business Community and the morale in the country. The spirit in the country. The consumer confidence. The new salaries for kids getting theres an air of confidence. Now, when you leave that, and i could go on and point out g gorsuch and the Appeals Court and i love where hes going, if he can get there. Now i go to management of a bureaucracy, giving him a d minus and being an easy grader. I think he was an entrepreneur who ran his own shop and never a bureaucracy in my opinion. If you run a bureaucracy, theyre in the weeds, behind the desk, whispering at the water cooler. You got to nail them and get them the hell outta there and he didnt do that. He had a family business. He ran it beautifully. In the end we ras very successful. But you cant keep doing that. And we should note, we deepened losses even since the last market check in the past couple moments. S p 500 down by 35 points. Down by 1. 5 . The dow is down by more than 300 points. We are seeing the deterioration most notably in financials, sex low session lows and financials down by 3. 3 and retail banks in particular taking it on the chin. Bring in our own john harwood and ceo of the committee of Economics Development and a c nbc contributor. Good to shave you with us. And seema, given the sea sweep and in the market, having been a ceo, how would you feel about that right about now . If you look at the facts. Democratic senators saying there are no facts of anything happening here. The people in the room with the Russian Ambassadors saying, it didnt the story didnt happen. If youre a Business Leader and youre outside looking in you say, gee, looks to me like more political theater. And then you look at the market and say, whats going on in the market . Weve said for three weeks theres incredible lack of volatility. That its at alltime highs and were ripe for a move. He we are. Off one or two percent off allnime hi allnial alltime highs. Reacting for to retail. A retailer going bankrupt every other day here. As much as anything going on in washington. I come back to washington and say, look the question and risk is that the agenda, the policy agenda is derailed simply because the noise outweighs the ability to move the policy agenda. Tax reform and health care are critically important to the Business Community and thats what theyre watching. Is it possible to the noise to go out and the sell . The point making on squawk box this morning, President Trump failed as a communicator. Hasnt gone out a and highlighted his win such as the Supreme Court nomination thats gone through, and also sell the agenda. For instance, even on health care. Didnt go out say this is obamacare, revised aca and what youre now getting. Wasnt able to do that. Can he continue to sell the agenda, tax reform, even with all of the other headlines . Right now . No. And, look, the agenda was not in good shape even before the scandals that surfaced in the last few days. And you know, steve talked about the russian intelligence thing. Thats an entirely different matter from the president firing the fbi director, investigating his campaign, and now contemporaneous memos surfacing from the former fbi director indicating that the president asked him to drop the investigation of Michael Flynn. That is something that members of both parties on capitol hill think is a big deal, and its why jason chaffetz, oversight chairman, asked for that documentation. Its why theres a different tone from republicans. Therapy now saying, we want to hear from james comey in open session. They are not trying to shunt this aside, and that reflects a couple things. One, theres a lot, has been a lot of smoke a long time around this investigation and now getting actual fire. Secondly, in terms of believing the president , you talked about communication. Most americans dont believe this president. So if he gets in a a test of credibility with james comey, all of the signs we have indicate that hes going to lose. If hes fighting to survive in office, washington simply cannot move on a big policy agenda at all. Lots of steps obviously, as you certainly appreciate as well as anybody between now and staying in office or impeachment, and steve, let me turn it back to you as a former manage of a large company. Jack welch pointedous mr. Trump manage add relatively small, closely held family business. When you attack washington, as the president has, washington bites back. How can the president reboot his policy agenda given whats going on in washington . Well, i think jack made really important points, and he is used to running a Family Company and hes brought some family members in to give him that level of comfort, but, look, this is about managing a big bureaucracy. There are 4,000 political appointments. What do we have . Less than 10 filled the this point. Actually working with an opposition government within his government in addition to the opposition democrats in congress. Hes got to get people in place throughout the government in order to further his agenda. Then the communication and the john harwood is right on all of the smoke and how its dominating the situation, but hes got to then get to a, a situation with congress between the white house and congress where they start to move the agenda. Right now congress is in disarray. Even though the republicans and both parties are not moving anything. This is where the communication and the work needs to happen. And john, part of the problem, people dont want to work in the administration. Talked, its not worth it with all the media heat. Quickly, i remind our audience, sadly, according to polls, which if you believe them or not, the public trust, trusts trump more than the media right now. He does have that one. Question, though, isnt there a possibility al green, democrat from texas, given a fiery speech calling for impeachment of trump, this is going to rally the gop . Not around the president. But just rally the gop together, because i remind everyone again it is congress, not the president , who writes the laws. I dont think so, brian. And one of the pieces of evidence i would look at, look at the Georgia Special election in the sixth district. The special election to replace tom nowed president s health and Human Services secretary. A strongly republican district. Has been for a long time. What republican pollsters tell me, the Republican Base is getting dispirited in that race. Democrats are charged up. Thats why even though in a oneonone matchup, now what were in on june 20th, that ought to be a walkover for republicans. It is not. We dont know whos going to win that race, but this is a race, one pollster, republican pollster told me last night is close and shouldnt be close. Gentlemen, leave it there. Thank you. Up next, a new industry that is disrupting our disrupter 50. Did you follow that, guys . Industry disrupting the disrupters. Which disrupt industry is disrupting the disrupters and made its debut this year. And we mean broad. Bring the big camera out a little. Widen it out. A lot of red on the screen. Thank you. Dow down more than 300 points now. And the selling is accelerating. Going to talk more on that and disrupting disrupters, next. It comes to technology, i need someone that understands my unique needs. My dell Small Business advisor has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. Broad market selloff the dow down 318 points. The trump portfolio down even more. Two biggest losers in that portfolio some of the private prison companies. Core civic and gio group down 6 and 9 on their own, tyler. Anything associated specifically, no the just with gop but with the trump agenda getting whacked including those names. And cdc disrupter list public. This year a newcomer representing a new category. Esports competitive video gaming. Julia boorstin at the headquarters of one of the companies on thelet. The name is skills. This is coming to my basement soon, i have a feeling. Yes, to your basement. For your teenaged son, tiyler. Mobile game tournaments. More than 12 million players world why playing over 1 of 1,000 games. Player over half female post an average of half a million tournaments daily for a user base spending an average more than an hour a day. 2016, about 200 Million People watching esports this year closer to 400 million. Growing at an exponential rate in terms of people playing and competitive Online Gaming and number of people watching. The company streamed 40 million minutes of its tournaments played by professionals last year. Platforms, amazon twitch and youtube and raised over 30 million including from tpg Founding Partner and owners from the new england patriots, bucs and new york mets talking about hosting con ti ining competitio stadiums. These sports competitions are almost like a comiccon meets nba type event. Probably see those continue to grow up as the hardware and software to run these events becomes more sophisticated. Skillz brought in 50 million in revenue in the past eight months and growing fast. Tune in tomorrow for more on the disrupter 50 list. Back to you. Thank you. Now to sue harare for cnbc head lines. Ty, whats happening at this hour, and everybody, the state department expressing concern to turkey about the violent incidents at the turkish ambassadors residence yesterday. Senior u. S. Officials confirming to nbc the men beating protestors outside the embassy in washington were turkish president erdogans body guards. Two men arrested. Those arrested were not the body guards. Antiausterity protests turning violent as a general flight halted flights, ferries and small transportation. Throwing gasoline bombs and fired flares at Police Responded by firing tear gas. The fda warns certain lead tests may be faulty. As a result, Young Children and pregnant women need to be retested. The agency says tests from magellan dyiiagnostics could produce results actually lower than the level of lead in the blood. Lucky charms, listen up. Giving away 10,000 boxes of marshmallow only lucky charms and soon on store shelves and inside a special code to enter on a website to see if you are a lucky winner. Magically delicious, im told. Thats the news update at this hour. Brian, back to you. Take any of the health right out of that baby. I love it. My lucky purple hearts, yellow moons, green clovers, orange diamonds. And the horseshoes. Purple horseshoes. You guys know way too much about lucky charms. The great thing, the milk becomes a readish, bluish, greenish color, run around, torture your parents aural day. Youve done this recently . Yes. Financials taking a brunt of the fall today. Goldman sachs taking big chunks ow the dow. Is that a good time to buy the barngs . Who knows . Our guests hopefully. Plus gold and Oil Rebounding a bit today. Ahead of commodities. Here exclusively, where oil is going as well. Closing trades of oil coming up next as well. Were always magically delicious and back right after this. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. 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. 90 minutes away from the closing bell on wall street. For some, couldnt come soon enough. Worst figures thins september. A point off the low of the s p 500. Good for a 1. 5 loss. Dow down more than 300 points. Some of the biggest gainers hardest hit. Video gamemakers, apple suppliers, absolute bid to safety with the yen versus the dollar gaining almost 2 and tlt, bond etf up by 1. 6 . The world may be focused on President Trump and james comey, but the commodity and energy worlds focused on may 25th. Opec meets then and decide whether to extend last years production cuts by another nine months. All this as americas shale boom moves on and drives american production closer to 10 million bears a day. Something thats only happened two months one time in 1974. Head of Commodities Research at Goldman Sachs joins us now. So may 25th. Do you think they extend the cuts and extend the cuts by nine months, not the current sixmonth plan . If you look what the markets pricing at this point now, i pretty much argue the market particularly after the move earlier in the week is priced in that full ninemonth extension. Kind of sad, given that though were up today, oils at 49 a barrel only when youve got saudi arabia opec and russia basically agreeing to curtail production. Why not at 69 a barrel . I think the market loss of patience. Look what happened since the beginning of the year. Tried to trade the opec production, big draws in u. S. Intenner tos, stung in april and again in may. In terms of looking, what do they have to see . Observable observatory draws before trading higher. Any reason to believe oil for the rest of this year will trade anywhere but in a band between, say, 43 and 56 . I think thats probably a pretty good assessment. Probably pick it up a little. Maybe put 45 on the bottom and maybe 57 on the top, closer to. The shift opec is generating, a shift where spot prices sit above forward prices. Why do they want that . Competition using spot prices lower than the forwards. They sell forward at those higher prices. Opec is too big to hedge. They get the lower spot prices. What theyre after is to flip that curve. Theyll get, say, 55 on the front end. 45 on the back end. Theyre competitors get that. Best explanation of something ive never understood ive ever heard. That was good. Glad to hear it. Tango pays the story. Right . Ship outside, let it rot. Right . Thats true. In terms of gold seeing a definite bid for gold in todays session. No surprise. What are your forecasts for gold and do they change at all . Have they changed over the past month or two as weve seen more and more headlines . Gold has been in a tugofwar between improving underlying economic fundamentalses on one side. Trying to put downward pressure on it and increased political and geopolitical on the other side. After the election saw the Political Risk taken out of the market. Mark traded down towards 1200. Now with the turmoil in the white house, combination of events that have happened the market is pricing in Political Risk. It did it from, i argue, dry gun powder gone up to a level around 1260 to 1250 somewhere today. In terms of thinking where do we go from here . I would argue that most of what was priced into today in gold was also priced into other fixed income instruments like the u. S. Treasuries. The question is, gold starts to price something unique to itself . We actually find that you have to get to really extreme geopolitical events before you begin to see gold taking on its own flavor relative for final question. Got to ask this. Youre the commodity guy. All the political stuff, do you have to, as a commodity investor and analyzer, do you have to watch the stuff got og in d. C. Now . Or just Everything Else . Weve always had to watch was was going on in d. C. Derail the trump agenda. Therefore gasoline price goes down, usage, stuff like that, price of oil . I argue since 2009, the political issues in terms of krafting a drag on consumption or boosting consumption have had a huge impact. I say whats happening today, yeah, maybe a little more heightened in the last several weeks, but looking at it here that the potential for political decisions. Think about how many times weve seen potentials for debt ceiling crisis, or one willingness to roll over. Every year. Great to get your views. As always, jeff, thanks for coming in. Always the best. And hit during todays downturn, down year to date tracking down over 3 today. A warning sign or buying opportunity to pick up some big banks . Bring in glenn shore, Senior Research analyst at abercore at si. Glad to have you with us. Thanks. And broadly speaking, did not do well. A lot of the gains after the election were given up. At this point we see further drawdown, what is that pricing in . What its pricing out, maybe pricing out. Even better question. Right . Look at the numbers. Financials outperformed the broader markets by call it 1200, 1500 basis points in november, december, and probably given half of that back year to date including today. So its just optimism waning on both the combination of rates going up, and the trump and republican agenda getting through. I can talk plenty about each of the details, but its really waning optimism about timing and magnitude of the republican agenda. Some people said even if rollbacks of dodd frank dont happen and investors dont believe that will happen, just the liar touch in terms of regulation of current rules that could actually help financials. Do you see anything do you see that being in jeopardy at this point given what is happening in washington . Well, i understand the level of concern, but, no. I actually think the lighter touch was starting to happen actually before the election. Got magnified by the election. And even in the worst Case Scenario in terms of todays news, we still have a Republican House, a Republican Senate and a republican white house. I think and its the right thing to do in terms of lighter touch youre talking about. I actually think its going to happen. It might be delayed. I actually think short rates are going to move higher, good for financials as well. Weve got really steep declines, glen, you know across the board here in financials. Regionals, that etf down by more than 5 now, and Morgan Stanley down 6. 6 . Bank of america down 6 . You like some of these names. I would think youd be pounding the table on a day like today . I got to tell you, i do like some of the names. Morgan stanley first. I like them a lot and if you buy it here and have a time, reasonable time, do just fine. Half that Company Makes the same amount of money every day between their Investment Management and Wealth Management firm, but a day like today, not a lot of buyers to be found. Its going to be all oneway traffic and people removing, like we said, some of the trumprelated optimism from november december, but, yes. I actually think nows the time when you start lining up your ducks, pick your spots and average into your favorite names like a Morgan Stanley. Great to see you. Thanks for your time. You, too, melissa. At session lows. Dow down 335 points or thereabouts. Goldmansachs, apple, big draws on the dow industrials and while stocks are down today, its still been a good run so far this year. Which means that wealthy people should have plenty of money to spend on art. Thats what theyre hoping at kristys where robert frank is today. Robert . Sure are. This could profess more than 50 million tonight. Find out whether the stock market slide could affect the mood of wealthy collectors tonight and talk stocks, the argument market with the new ceo of christies coming right up on power lunch. 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. With this level of intelligence. Its a supercomputer. With this grade of protection. Its a fortress. And with this standard of luxury. Its an oasis. The 2017 eclass. Its everything you need it to be. And more. Lease the e300 for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade stocks now are at session lows. Just broke 2360 on the s p 500 hitting fresh session lows. S p now down by 40. 5 points. Loss of 1. 7 . The dow, look at the dow here down by 1. 7 as well. Or 352 points on the session. Again, apple as well as Goldman Sachs, two of the biggest decliners on the Dow Jones Industrial as we are sinking further and further through the session. Melissa mentioned stocks down big today. The fine art business is seeing another type of telloff this week about 1. 3 billion worth of stuff being sold off. We have an exclusive interview with the christies ceo live from the auction house in the city. Robert . Tyler, thank you. We are here with mr. Serooney. So important. Will an investor seeing the market down more than 300 points today want to get up with a paddle tonight and pay 50 million for a piece of art . A. Fair question but im very confident for many reasons. First, the market is proven to be very resilient. Weve already experienced these kind of situations and the market resisted. Second, i think a masterpiece is a masterpiece and tonight we go through many masterpieces and a good foemt more collectors of art and a good test. This morning when the market open, the same moment, a major sell in geneva. Jewelry. Goes very well. So those buyers in geneva, buyers youre talking to today, that i see around here in the sales room donts seem worried about the market decline now . No. I think they understand that collecting, buying art is a longterm thing, and they will be present in the room tonight. There is cycles. Last night we saw correction. After the trump election it came back and i think a lot of that was people expected tax cuts tore the wealthy who tend to buy a lot of art. Are you worried that that premise is now gone . No, i dont think so. Every sale we had over the last year since the election here, since the brexit vote in europe, since the french election, we have seen a very good result. So im confident, and i think the market is strong. Its a global market. We have buyers from all over the world. Asia, middle east, so its the markets reacts very well. You mentioned the global market, but we used to have the russians, qataris, the chinese, tougher for them to get money out. Are there new buyers and who are they around the world . Wheres their money coming from to support these sales tonight . Last year 32 of our buyers were new buyers to christies. Every have new buyers. I want to mention before we go this painting behind you because people are probably wondering about it. What makes this painting worth up to 55 million . You see it is a masterpiece. It is part of the most prestigious artist. This artist is part of the history. At the moment he has a major exhibition in paris. This piece we will sell tonight is part of the series that hes already presented here in new york. It is a masterpiece. Thanks for joining us. Good luck with the sale tonight, and all of this probably more excitement that you expected for tonight. Thank you. Reporter thank you. Back to you. Thank you very much, robert frank. A big drop for stocks today. Does that make now a good time to buy or is it the start of a bige selloff. Trading nation is next. I am helping 8 million taxpayers get the largest refund they deserve. One Million People can benefit from precision cancer care. 197 million passengers can fly with less turbulence. I am on my way to working with one billion people. I look forward to working with you. Time now for trading nation. Lets talk these markets. Asset management, mark teper with Strategic Wealth partners. Mark, beginning with you. 1. 6 down day for the s p 500, worse day of the year so far. Will it continue or will we snap back . Were not concerned about it. We think it is a shortterm move, and think the main reason is that it is driven by political headlines, not fundamentals. It is apparent Political Risk is shifting to the u. S. But the fundamentals are great. Earning season has been awesome. We have seen 13 Earnings Growth year over year. The economy is doing fine, pmi is still expansionary, despite some weak q1 consumer growth the consumer Balance Sheet looks great. The correlation between stocks and s p 500 is down right now, which typically means that the overall market moves up. Why . Because all of a sudden the market starts to pay closer attention to fundamentals and that becomes the driving force for stock prices. With the fundamentals good the market should continue going up. Boris, having spoken with you a fair bit lately, i would say your view is decidedly the opposite . A little different. I have been arguing it is a political trade on the way up and i think it will be the same on the way down. We have an extended invitation to james comey to testify in front of congress on wednesday. That could be a volatile day. I dont think the story is over. I think, yeah, at the very least we could see the dow trade back to 20,000, the s p trade back to maybe 2,000, if the story really picks up steam and we have a lot more risk aversion in front of us. Next wednesday could get all of the National Attention for certain and could impact the markets as well. Boris, thanks for reminding us. Thank you both very much. Go to tradingnation. Com. Check please is next. And now the latest from tradingnatio tradingnation. Cnbc. Com. Now a word from our sponsors. Thus, if a stock closes below the stock price one day and opens far above the limit price, the trader will not buy the stock. I count on my dell Small Business advisor for tech advice. With one phone call, i get products that suit my needs and i get back to business. shouting more power tools. More power suits. shouting more power. Chords. With customized Loyalty Programs and datadriven insights, Synchrony Financial can help bring more. Power to your business. Weve done well in life, with help from our advisor, we made it through many market swings. Sure we could travel, take it easy. But weve never been the type to just sit back. Not when weve got so much more to give when you have the right financial advisor, life can be brilliant. Ameriprise lets check in with john horowood with a developing story. Tyler, sean spicer briefing reporters on air force one, introduced two new names to the mix for fbi director. One, joe lieberman, former democratic senator. Second, frank keating, former oklahoma governor. Both have appeal across party lines. However, congress has been indicating the senate, which has to confirm, been indicating they want somebody without political ties to this process. Not sure whether either will get through at the end. Thank you very much. John horowood in washington. Of course we are watching the markets. On the s p 500 it looks like we defended the 2360 level. Our session lows were 2359 or so. Were still down by about 37 points, or 1 1 2 . Dow is down by 317 . No surprise the nasdaq is feeling the most pain of the three major indices. Those were the biggest. Lock in the gains that we saw on the nasdaq. I just wonder if it is going to impact the overall economy. I put a poll out on twitter. Check it out. All of the stuff going to make you stop spending, stop investing or neither . 75 of the respondents not many, 181 because i just put it up a few hours ago saying neither. Theyre going on with their lives. The story in washington, it is beyond the poe tom ak. Somebody sent in a great chinese proverb that said the mountains are high and the improperor is far away. I wonder if most of america feels that way. Hi, everybody. Welcome to closing bell. Im kelly evans at the new york stock exchange. Im bill griffeth. Washington concerns finally hitting washington street today. Weve been talking about this for a while. Reports that former fbi director jim comey wrote a memo detailing his conversations with President Trump earlier this year, and one of the memos apparently says that mr. Trump asked comey to end the Michael Flynn investigation. That among other things apparently has spooked some members of trumps own party, which in turn has