Where are the drinks . Im ready. Welcome to power lunch, im michelle carusocabrera. You can see the dow is lower by 91 points and the nasdaq is managing in positive territory, Goldman Sachs and United Health are weighing on the dow following their ownerings and those two stocks are responsible for more than 50 point in th dows near tripledigit decline. On the flipside, as i mentioned, netflix is up more than 10 ity hitting alltime highs on the back of their results. Harley davidson is tanking 10 motorcycle maker says demand is slowing from the baby boomer Customer Base and well talk more about that ahead and chipotle is down more than 5 . A chain shutting a restaurant in sterling, virginia, after customers got severely sick after eating there that stock down 22 in two months and well speak to one analyst who unlucky for him, just upgraded the stock based on queso. Qu is eso. Cheese. The Gop Health Care bill is dead and now so is the republican plan for a straight Obamacare Repeal and President Trump now weighing in. This is truly a developing situation with big stakes for the 20 of the economy thats tied up in healthcare. We are waiting for senator Mitch Mcconnell to speak in the next hour Kayla Tausche is in d. C. And lets go back to eamon javers at the white house. Did i understand correctly that there will not be enough votes for a straight repeal of obamacare either reporter thats right, tyler. That didnt each survive until the senate went into its lunches today so the question is where do they go from here the president venting some frustration here at the white house just within the past couple of minutes, calling reporters into an event where they werent originally supposed to have reporter says so he could answer questions about this Obamacare Repeal and replace failure today. The president saying ultimately, hes been hearing complaints about obamacare for seven years seeming perplexed as to why republicans cant pass this bill up on capitol hill saying that he is standing in the Oval Office Ready to sign it and hes got his pen out and ready to go and republicans simply wont send him the bill and heres what the president said moments ago at the white house i am certainly disappointed for seven years, ive been hearing repeal and replace from congress and ive been hearing it loud and strong and when we finally get a chance to repeal and replace, they dont take advantage of it. So thats disappointing. Im disappointed in what took place. It will go on and well win. We will win on taxes and infrastructure and lots of other things so if you listen to the president there, tyler, you seem to hear an emerging white house strategy of simply doing nothing on obamacare moving forward. He talked about letting obamacare fail under its own weight and letting the democrats coming back to negotiate and he might not do anything between now and 2018 and we simply need to elect more republicans in 2018 who will have the votes to do this after that election. Its very tricky for this white house going into that 2018 election theyre going to need to demonstrate some kind of concrete, legislative accomplishment for those senators and congressmen to run on in that 2018 campaign maybe thats why you heard the president there seemingly eager to pivot to infrastructure and taxes, two of his other big agenda items, tyler. Thank you very much, eamon. Now lets get to Kayla Tausche in washington, d. C kayla . Reporter the two republican senators who came out this morning and opposed the stand alone repeal plan less than 24 hours after majority leader Mitch Mcconnell and said that wouldnt be the route they would be taking did speak to reporters. Nbc talked to murkowski who stopped the bill in its tracks take a listen to her reasoning for her opposition i said in january we should not repeal without a replacement and just an indefinite hold on this just creates more chaos and confusion. Susan collins of maine who was one of the no votes back in 2015 when they pursued a standalone repeal and at that time did pass it, she said this morning that at this point the Health Care System is too reliant on the infrastructure that is in place listen at this point the Affordable Care act is so interwoven in our Healthcare System that to repeal it completely with no idea what its going to be replaced with is not the right approach. The third senator to defect on this was shelly from virginia who said i will only vote to repeal legislation if i am confident there is a replacement plan that addresses my concern and of course, having years between a repeal and a potential replacement would not seem to e lay my concern it does not support a bailout for the Insurance Companies and they rely on billions of dollars of payments that originate from hhs and are greenlighted by the white house. The president has said unilaterally he may decide to stop those payments and sean spicer said theyre taking it on a month by month basis and were waiting to see what the exchanges look like and whether or not the white house is willing to let them fail. Piles of uncertainty. Thank you so much. If you want to see how the latest version of the republican healthcare bill and you can serve as circles and just take a look at the front page of the drudge report. The headline, the most Unproductive Congress in 164 years. For more on the d. C. Drama lets bring in bill crystal, founder and editoratlarge of the weekly standard. Good to have you here. Hi, michelle. The president says when it comes to the optics its not the republicans who will suffer and it will be the democrats and that theyll have to vote in or the American Public will have to vote in more republicans come the midterms do you think this is how its going to work out . No. I think if you control the presidency both as the congress and you have an expectation so high that youre going to act. They said from the beginning that this will be very hard and well need 60 votes and bring it to the floor and then maybe you can say the democrats are not willing to work with us and now we have to resort to a partisan vote if you begin with a partisan vote and youre telling peopleio you can do it on a partisan basis and you dont, every president has had some legislative accomplishment by the august recess. Reagan and bush had the tax cuts and obama had reduced the deficit and president obama had the stimulus i think they will go into the august recess without any big legislative accomplishment and voters will say, gee, isnt donald trump supposed to be able to shake things up and or, shouldnt the congress be able to govern . Should they take a vote so they can live with the vote . Hes not going to get the votes to proceed to the bill. Something that makes them take a stand i think its crazy. What does that do . I wonder what mcconnell was thinking last night. It was obvious nobody wanted to vote with replacing without repeal seeming to make a goodfaith effort so he can now say lets move on. Meres the question for me health care is very hard and they shouldnt have begun with it, they began with it and now lets do taxes and infrastructure and thats the conventional hopeful view that maybe they can get legislative accomplishment with that thats not easy to do with that one. Its easy to lose the next one the president has established that if donald trump, and paul ryan say theyre for something, it doesnt mean it will happen does electing more republicans as the president called for moments ago, does that solve the problem when the Republican Caucus seems so internally divided on this and by the way, theyve had seven years to come up with a coherent plan to do that. Thats question one, bill, question two, is Mitch Mcconnells leadership in jeopardy you put it very well. Of course, if they had 60 republicans it would be easier than having 52 in that respect, its true, but yeah, once theyve touted their ability to do it with 52, we need even more and so lets defeat a few democrats and they did such a miserable job making the bill, it was unpopular by 50 to 25 among voters who knew something about it, and so its not as if there is a big backlash in the country, hey, we really wanted to have that bill and you guys denied the to us as you suggested in the question i dont think thats promising i happen to have been through a couple of republican senators this morning on the hill just by chance ive struck how unhappy they are with the way Mitch Mcconnell ran this, and ive been in washington for 30 years and major senior republican senators didnt know what was in the bill and the leadership staff was drafting and what are we going to go with well let you know when you get to the floor they paid mcconnell and the president back and by letting them jump ship, which is pretty extraordinary. Just to extrapolate, this loss makes another loss more likely are you discounting a tax cut even at this point i think they have a shot at it, but i think its just hard to get the legislation through in a weird way, the economy is doing decently, so whats the urgency . You say that, the minute this news hit, the dollar got smoked today. Treasury yields started to fall. People started buying safety stocks are weaker today and maybe to your original point, the idea being okay, lets get past health care so we can do tax reform and now, instead, that is not maybe what youre saying if they cant get this done, does that say tax reform to melissas question . You cant get done either. You can pivot, but pivoting requires a fresh message and fresh thinking and saying we screwed up on tax care and heres what we will do on tax reform, and lets see if the Trump White House has figured out a way to have a serious work seriously with Congress Democrats onboard, i think that still remains important. So its a big question mark for me me. I dont think theyre doomed, but i dont think it will be easy either. Good to have you. Thanks. Market watchers saying beunderstandio earnings, the d. C. Gridlock, investors appear to be losing some confidence that the administration can move on key items of the trump agenda Michael Maron chief strategist with state street Global Advisers burns mckinney, i know i got that right chief officer with nnj chief Investment Group gentlemen, welcome how big a deal for investors, burns is the collapse of the repeal and replace of obamacare . It definitely matters, but not for the reasons that people are talking about. The fact that they touched the third rail of health care and failed there is not necessarily so much that the markets are focusing on. What the markets want is tax reform and these two items are really interlinked theyre tied together because of the fact that Health Care Reform and the repeal and the replace plans that were in place actually contain budgetary offsets that would have been helpful to pay for substantial tax reform, and so as a result of that, this is something that is tied together and it does matter to the markets and that is one reason, in fact, that youve seen the fact the bond yields have reined in, i think thats mr. Markets way of saying that the market is saying no, we didnt succeed here this renders us less likely to succeed on tax reform. Michael, what do investors really, really want . If you had to prioritize all of the things that investors would like to see to keep equity values going up, what would they be, in order profits, this, this, this. The number one thing they want is growth, and thats what we continue to see this has been a time warp of a bull market. Its been defined by modest growth, low rates and benign inflation, and we continue in that time warp so the number one thing investors want is growth, Earnings Growth, Profit Growth and youre seeing how tyler in todays market that companies are able to generate Earnings Growth are doing pretty well like netflix, technology, financials and those that cant seem to be lagging so burns, give me the case for financials financials are pretty much across the board posted okay earnings there were some misses for certain metrics and certain banks and the reaction pretty much across the board has been negative and to michaels point, it looks like the michael wants the surefire growth and were seeing bank stocks uptodate, for instance i think a lot of it is that youve seen the yield curve tighten which certainly is a negative for financials and this results in that happening more so, that spread between the two and the tenyear thats, in essence, bank prophet margins and thats as narrow as its been for years when you combine the fact that theres nowhere to go, but up, and the valuations next to telecom is the cheapest sector in the market and whats most attractive to us is the fact that coming out of the if the only reason for financials are that seems like not a very good reason to be in financials just for the net interest margins which have pretty much missed each with the yield curve steepening during that quarter i think that that can act as a tailwind. Sure. The real thing is Dividend Growth and betterthanexpected Dividend Growth even through the stress test. You have jamie dimon saying theyre the best, as well as valuations. What the investors want and markets want is growth when we see today that yields fell almost immediately, the dollar started to fall i mean, the euro almost went to 1. 16 at one moment when they found out that Health Care Reform was just not going to happen and a vote was going to fail on all counts, it seemed to suggest that the market feared were not going to get as much growth as we wanted. This is telling us something is that a correct way to read what happened . Absolutely. I think that investors have built in a tremendous amount of growth expectations and Interest Rate rises and inflation based on the fiscal policy agenda, and whats happening with health care is another illustration that that fiscal policy agenda is stalled so not only is it about health care now it becomes a question of can they get tax reform done, can they get the Infrastructure Projects as trump was mentioning and the markets beginning to question that and were seeing that reflected in stock prices and lower growth expectations and were seeing it expressed in Interest Rates and in the u. S. Dollar today all right michael, thanks very much and burns mckinney, thank you, as well thank you just talking about financials, Goldman Sachs is a big drag saying it had the worst quarter ever on commodities trading. The cfo saying we need to do better how . Chipotle, new fears after oppele getting sick after eating there. Well discuss that power lunch will be right back you know whats awesome . Gigspeed internet. You know whats not awesome . When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids. And these guys. Him. Ah. Oh hello that lady. These houses yes, yes and yes. And dont forget about them. Uh huh. Sure. Still yes you can get it too. Welcome to the party. Introducing gigspeed internet from xfinity. Finally, gig for your neighborhood too. Welcome back to power lunch. Netflix stock on a record high and that means ceo any cofounder Reed Hastings is reaping the reward with praises at current levels his 5. 8 million shares is worth 1. 7 billion, and it could have been worth more if hed held at netflix. Hastings had 29. 5 million shares of the stock in may 2004 if all those shares were kept, his position would be worth 5. 5 billion of course, you cant fault someone for lightening up the shares some Financial Advisers may call it prudent timing. Tyler . Thank you very much Goldman Sachs, the big culprit here bob pis an ani who is at the Ne York Stock Exchange is no culprit. The sectors that are moving today and sort of a defensive situation with the markets right now with the utilities rallying a bit and we also see reits rallying a bit and the tenyear yield is down and this may be due to the disappointment and techs not doing too much and the homebuilde homebuilders have been doing well recently. Its a story of the banks, and if you take a look, you see Goldman Sachs, bank of america and comerica, a regional bank, all down downside. Ill try to summarize the Bank Earnings as best as i can. The things that matter are the fixed income and Commodity Trading and Net Interest Income is up in all these banks, but not up as much as people had hoped and nonInterest Income and these are the fees that have been charged and thats been a big topic and a big source of revenue for many years and thats higher and thats been a plus and heres the other big issue and loan growth has been fairly anemic and you can see this in Comerica Bank and this is in the center of the United States and texas whats called middle market lending and comerica, they gave guidance for the year and their loan growth will be up 1 . They had previously been up 1 to 2 and the bottom line is were getting some growth and its not great and the Interest Income that you would normally get from a lift in rates is there,