Vegan nail treatments, taking the Retail Experience, and we do mean experience to a whole new level. Well take you for a tour. Pass the avocado juice, everybody, because power lunch starts now im brian sullivan, none of the major indexes are moving that much. The dow tufrned negative but the dow would be higher if it wasnt for home depot, shaving 45 points off the dow this despite an earnings beat and raise the outlook. Investors looking for a little more from home depot outside of that store pretty of an empty parking lot for Retail Stocks and investors in Advance Auto Parts losing 20 of the money both retailers missing profit fimts and giving weak guidance Energy Stocks under pressure crude oil back down to the lowest level since mid july. We begin here in new york President Trump will be focusing on infrastructure today and his arrival come as mid large protests at trump tower. Heres the latest on those stories. Reporter the president is continuing his working vacation at trump tower today we dont know exactly whats been on the schedule so far this morning but one of the things hes doing, firing off tweets, including this one, referencing some of the ceos who departed from his Manufacturing Council in protest over the way the prds handled the racest violence over the weekend, tweeting for every ceo that drops out i have many to take their place, grandstanders should not have gone on. Jobs, exclamation point. Among those people are the ceos of merck and under armour and intel. One critical of the way the president handled the situation in charlottesville, virginia take a look at the list that we put together the Manufacturing Council is a Large Organization not all ceos have issued statements a number said they are stepping off and number who indicated they will be staying but look at the list of ce ooxts who not issued in he comment whatsoever. The representatives of a number of different sectors here like Johnson Johnson and Lockheed Martin imagine being a Defense Company executive and being confronted with the decision today. It would be difficult for a defense ceo to step away or put any distance between themselves and the president of the United States thats the political moment that a lot of ceos find themselves in today and board walks are faced with this decision, do we align ourselves and step closely to the white house or do we issue separation between ourselves and donald trump the president clearly frustrated with those threatening to leave saying he could get replacements any time no replacements have been announced. Were look at the live shot we know there were protesters there last night whats it there today . I see all of those huge dump trucks obviously meant to be a barricade huge barricade against trump tower, right thats the security perimeter. You can see the white trucks, all Sanitation Department trucks and that is the reality of the world that we live in today. Those are for bomb proofing trump tower, absorbing any blast that might happen in this area they have secured this area pretty tightly there are barricades up all around and its pouring down rain right now that puts a damper on the protesters i expect might see more tonight but as of right now, very quiet out here, people going about their business everyone is trying to get on with the day as usual here at trump tower. Thank you lets bring in larry kudlow. Ceos were his biggest defenders and now leaving this council. Actually, can i say ceos were never his biggest defenders, some hes always been a controversial president. A lot came in to work with him when he took office. I guess for whatever reason, what is it, two were at three now. Plus two from the climate accord issue as well. And elon musk. From the climate accord. The climate accord thing was always controversial can i just say, trump has done whatever he can do maybe he was not as complete and specific with his first pass at the charlottesville catastrophe. Maybe i dont know i know the guy for many years, theres not a hate bone in his body and the white house issued a second statement that covered everything, then a third statement. Then he made his own Statement People are just trying to put a noose around his neck. I really think its wrong larry fair to say that yes, i think so i think sully i think your choice of words, larry, choice of words in the context of a rally involving the ku klux klan was unfortunate just there. I take that back then what im saying is, liberal side of the spectrum i take that back apologize. Theres not a mean bone in your body either. I can attest to that too. Im just saying i think people are going after him who are being too hard on him. Most of the the ceos have to do what they have to do, its up to their conscious, they have customers. I understand that perfectly well i think trump is getting a bad rap but i apologize. Why larry does President Trump 30 minutes after ken frazier quit the council, i know you cant speak for ken himself, why does he send out the tweet which can be perceived easily as mean spirited. Why do that . Youre the president of the United States. Nobody politically is above you. What do they say, dont punch down why do that . It just its a hard thing to know. Im sorry for my language right there. I get it. He expresses himself the way he expresses himself. Sometimes motto, if you will, if you attack me, im going to attack you. Yep. Hes really never left that sometimes it comes out very unfortunately and honestly what he could have said, i respect the guys decision well talk later i dont know sometimes these stories but thats not in his dna. Sometimes these stories break and youre the president and got to Say Something on pt spot and it may not come out the way you wanted it to come out. I just feel come back to this knowing him and knowing his family, theres not a hate bone in their body. I think he could have been more articulate for example, i think your interview yesterday with larry of university of virginia, two virnlg vrnginia guys was fantasc unfortunately president s dont always have that leisure to do well thought out interviewed my hunch is that some someone interviewed him. He would have gotten it out better im going to say lets move on because i dont think i think the president has done what he needs to do. He said what he needs to do. If he was holding back, you know, on tuesday, that might be different or but he didnt. He moved right in and so did his staff. Ceos have been pushing so hard for tax reform. Is that in trouble in any way because of this or can that still . No, i dont think it has anything to do with it i thought the fred smith, ups through an oped coming together even though they are competitors, on the same page with tax reform. I think thats the issue here to me, you have Business Executives like smith and ups, competitors. A lot of people in the Business Community share a lot of the thrusts of the trump economic agen agenda were attracted to the kbrd of coming together and working with the white house to get things done what a change from the Prior Administration which did not have that kind of relationship. Issues are behavioral and retore cal. Many of the ceos to come back to your point, many of the ceos were not natural Trump Supporters a lot of democrats are ceos and business round table, i moderate events i get that, thats fine. This is america, youre free to choose they like the policy as you suggested. Its fascinating, they want lower tax rates, Corporate Tax rates and they are saying, you know what, if you can knock down ten points just ten, they believe it would increase growth by 1 to 2 . If you get it to 25 , we who are informally advise trump, take it down to 15, youll get even better they agree heres the key point those two rivals agree that lower Corporate Tax rates will in fact pay for themselves, they said that in the article and will generate faster growth and then they are saying, were the biggest users of infrastructure, were the transportation guys. So we need to get this through and thats where everybody has to focus you know you know this more than anybody up here, the way to get what you want in d. C. Is make some friends out of maybe enemies. Yes, i agree. Part of doing that is watching your language, saying the right things, giving somebody something for a little bit back, what i dont understand about the president is that we are all on this set what we say. Right . The viewer doesnt know what were like at home dont know our individual lives. They know what we say. I Say Something inflammatory, suddenly im a jerk. Hes a jerk because he said this dont know how i live my life. The president has this massive platform and becoming his words. Why not send out some conciliatory language once in a while so that maybe those on the fence on the legislative side say you know what, he gave me a little, im going to give back a little. Well, look inflaming i said something that im taking back, very unfortunate. Your generaler point is right. The president is not always adept at taking situations and turning it to his best advantage. I will say this, watching him fight through the Health Care Reform and john mccain, they couldnt get it through, he really worked with individual congressmen and women in the oval office, i happen to know this, he would call them hes learning the game down there. This is charlottesville is an unfortunate incident not becaus he believes hes a hater i dont think the two issues are separate issues and i do think this, so far as i know, and i was in to speak with him for almost an hour two and a half weeks ago, they are going to go full scale ahead on messaging and marketing. Tax reform. Yes and tax reform and trump has always tried to link infrastructure with tax reform a deal was out there several years ago, it was paul ryan and chuck schumer, to somehow link repatriation at the certain rate to infrastructure. That deal may or may not be on the table but thats a possibility. I must say this, i dont want to turn partisan on this. It is not a partisan day, i get that but the democrats are not helping. They are issuing ult matimatums it makes it difficult for republicans to reach across the aisle when nobody across the aisle wants to play ball right. Heres fred smith and ups i apologize for not remembering his name i nknow fredis a republican david i would love if he were a democrat because theres a example. What are they saying infrastructure for transportation, lower the Corporate Tax rate thats what they are saying. And you know, thats what we need thats what kudlow has been saying for several years maybe longer so we got it. Lets move on and do the nations business, honest to god. Wed all love that. Thank you. I appreciate it very much. To the markets we go and stocks trading in a narrow range. Bank of america and Merrill Lynch with a new survey showing equity markets are overvalued. That is a new record on the other hand david tepper still loves stocks, saying were nowhere near an overheated market jason wair, chief investment officer, which is it, overvalued, kate, or a loveable market i think its closer to a loveable market but i dont think anybody would say stocks are inexpensive at this point. Almost every measure of valuation, whichever one you like says stocks are above their longterm average and i think the real question is what is that compared to and what does it mean . It doesnt mean the market drops and doesnt mean that things are bad. It doesnt mean you should be out of equities because weve been in the situation for a while. Even if the percent who believe it has increased i think it means we should have lower expectations for long term returns, which is what historically has been the result of high market valuations. Jason, over to you. My notes reflect that you say market mood remains somewhere on the scale between outright gloomy, i dont know where i see that and restive participation what do you mean here . How did that trans light into an action plan . First of aill, the good news this level of skepticism is a healthy signal for the market what we mean by outright gloomy, when we look around what Retail Investors are doing, they are still pulling money out of the market despite were at record highs. The small invster hasnt been participating and mean whi while, my industry peers wanted to tick off the list of what go wrong and things we should be worried about. The bull market is too old and valuations are too high. Volatility is too low. We need to worry about the fed and we have rising geopolitical tensions now. Famous wall of worry. Thats right. Maybe stocks deserve to be at these prices because there sure dont seem to be alternatives that look better. Interest rates where they are, for sure. You tell me. Thats exactly right. When we look at valuation from the lens where valuation is sub2 and 2. 5 tenyear treasury yield and loose conditions in general, were in the david teper camp that looks at things differently and sees a Pretty Healthy market. Thanks very much. We appreciate your time today. Jason ware and kate worn wair and worn, not too far off. Retail therapy, what sakz is doing to make sure its customers literally feel good. Coming up, the Technology Stocks one analyst says are the most likely to get bought out get your pens ready. The analyst who made that call names names, coming up nothing brightens an investinvest ers day than finding out a stock you bought get bought at the big premium. Were trying to improve your odds, out with a new note listing his top five take outcandidates in the semiconductor space. Chris, thank you for joining us. Thank you. We love the note, i want to walk backwards, marvel, hot stock. Four is microsemi and number three, kavium. Why them all of the stocks come from a screen that we do we essentially look at the amount of accretion an acquirer can unlock by buying what we think are subscale Semiconductor Companies and these five names and those three that you mentioned floated to the top. Okay, number two, a name ive never heard of, max linear was this known by another name or popped out of nowhere. Always known as max linear. A lot of these are subxral so they are small a larger buyer can benefit from the scale. Okay, your number one most likely takeout candidate, integrated device technology, what would make them so attractive to somebody else and who would that somebody else be . We think financially the accretion that were talking about, this is one of the most akreetive names weve come across, the earnings could be 45 higher than what they can do on their own secondly, they are a play on wireless charging, which is expected to be in the next line of apple phones and also a play on intels next server product thats coming out starting to ramp right now chris, great note top five ill post them on the website as well chris, we appreciate you coming on the show. Thank you. Thank you. Still ahead, boeings stock has been flying high and now the company is ramping up production r meet the demand wee live at the boeing plant straight ahead you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Welcome back, everybody, boeing boosting production in the hopes of easing the companys backlog of orders, phil lebeau live at the boeing 737 plant in washington. Hi, phil reporter i dont know if youve had a chance to look at the percentage of the dow move this year that is responsible for coming from boeing, its 560 points of a little over 2200 points that the dow has gained, 25 of the gain this year has come because of boeing we talk about the increase in production you can see it right here on the line in renton, washington thgs the 737 line. They did make 42 a month earlier this year. Theyve just converted up to 47 per month. Thats where they are at right now. Next year they go up to 52 per month and then in 2019 they go all the way up to 57 per month so a huge increase in production, part of the reason they are able to do that is because they are moving through much more efficiently. One of the planes here and they are in seven positions when they come in, they attach the wings to it. Within a week it will be out of here this is a moving Assembly Line doesnt look like it but it is greater efficiency, theyve been able to trim the payroll a little bit and add auto mason, driving higher margins and greater productivity and thats why so many investors say they want to get in on boeing right now. Back to you. Phil lebeau in renton, Washington Well see you soon, thank you. One overlooked area in the economy that could be the answer to higher growth that answer is next. 3w4r57. Hi, everybody, a suspected islamist militant was killed in an explosion inside a hotel in bangladeshs capital during a raid on a alleged highout. Bangladesh has been experiencing a rise in islamic militantly in the past couple of years. Uber has settled allegations that it made deceptive prifgs and Data Security claims as part of the settlement it cannot misrepresent its access to consumers personal information or how it secures that data. It must implement a Privacy Program and submit to audits of that program a jury has found four teamsters not guilty on all charges in connection with accusations they intimidated the staff and crew of the chef reality tv show. The shows host testified that she was petrified