Transcripts For CNBC Squawk Alley 20170623

Good morning welcome to squawk alley. Joining me this morning, sarah eisen and mike santoli and the the senates new Health Care Plan in a joint statement, rand paul, ted cruz, mike lee and lee johnson say it doesnt do enough to repeal obamacare. Republicans can only afford two no votes the aarp, American Hospital association and others have also come out against this bill health care stocks, though, surging following the drafts release. Theyre on pace for the best week of the year maybe some profit taking today but still, more than 3 for the group overall. Walter, whats your prediction how does the next week unfold when it comes to health care on capitol hill well, i think that senator mcconnell is a very savvy operator i think he wins either way if he can pull this off and have a vote and have it succeed, thats fine. If not, he gets to move on to what i think he would consider or i would consider the more important parts of the agenda right now which is tax reform and infrastructure and then let the health care thing marinade for another year. At the moment you got a bill that is, as you say, it isnt really a repeal of obamacare its a tweaking and twiddling of obamacare. What it does is it really, you know, loses you the four senators you talked about. But then it also enrages people in the senacenter and left beca its a huge tax cut for the top 1 of the country in order cut Health Benefits on medicaid and then other areas walter, it seems like so much of the talk on this bill is about how its not obamacare but very little talk about what it is and what this actually does for americans. Do you think that conversation shifts any time soon or is this where we sit we are here at the Aspen Institute. We have our Health Strategy group and forum. Its a bipartisan forum led by Tommy Thompson who was a republican governor of wisconsin and secretary of health and Human Services Kathleen Sebelius from kansas and secretary of health and Human Services theyre meeting right behind me now. You got people in that room who know pretty much how you can get 70 of this country agreeing on what is a logical way to provide health care in this country. That takes a sort of centrist approach that were not anywhere near right now obama passed the Affordable Care act on a Party Line Vote republicans are trying to do whatever theyre doing with it theyre neither replacing it nor repealing it theyre meddling with it on a Party Line Vote. At some point i kind of hope that all of that fails and a group of people, democrats and republicans, are going to be willing to forsake the 20 of their party on the fringes and write a sensible bill that would try to move us away from the costliness that comes with fee for service. Try to make sure that there is more general coverage without a whole lot of mandates. And make sure preexisting conditions are covered but youre not going to get that way that theyre going now with a purely partisan and poisonous approach on both sides walter, longer term you almost wonder whether this bill passes or not. I mean it seems like, you know, republicans wanting to take credit for doing something about obamacare and maybe down the road when youre actually not just solving for taking credit for that, you might be able to incorporate some of the rest you know, thats a really good point, too. I would say maybe if this whole thing fails and a few reasonable people can get together and form a coalition, but even if this thing passes, its not going to solve anything it kicks down the road two years. Some of the cost problems. It doesnt really change the fundamentals of obama care. So if this passes maybe can you create an act. American airlines Ceo Doug Parker telling our phil lebeau, Qatar Airways plan to buy a 10 stake in the company is confusing, misguided and illconceived, especially if the plans involve favor to expand operations in the united states. We know youre on the United Airlines board of directors. So you know the industry pretty well and the geopolitics are complicated. Whats your take on this one well, big on the united board. Im not really prepared to talk about how it affects, you know, either unite order american. But the geopolitics are very complicated. As youve seen over past two weeks, the other gulf states, meaning the uae which has two big airlines, the emirates, as well as other gulf states and saudi arabia have aligned against qatar and made demands on qatar in a very complicated middle east dance there thinking that qatar codeied up too much to iran and also they rejenltal gentleman zeier yacht network. So all of this is taking place where trump is supporting some personally supporting some of the gulf states and saudi arabia in their fight against qatar. But the u. S. Foreign policy is annunciated by the state department is that we really are not going to get involved in that struggle. So its kind of hard to see why qatar would come in right now and try to get involved in a usair lines industry especially when there is a resistance of the u. S. Airline industry against the subsidized carriers coming in and, you know, get subsidies from the government and compete with airlines around the world. All right moving on to Silicon Valley now. Just days after travis stepped down as uber, uber employees are circulating a petition asking the board to allow him to stay on as the companys ceo. Thats according to recode some are starting to ask what is the future of this Company Actually look like john, do you think that there is any merit to having Travis Kalanick stay on if it does help the morale of these employees that are utterly leaderless . Its not surprising that theres a sizable faction in this company that loves travis kalanabbing. We have linkedin here talking about how much people want to work for this Company Despite the troubles that its been through, despite a lot of the Public Perception against it that said, doing that would be dangerous at this point because youre in infect puttieffect pub in the eye of the customers and drivers that have a way with the twha company has been run. One of the cofounders saying we have real problems, we need to move on this from this stage of leadership to reverse that would be very strange. I think there are questions though about does this really diminish ubers position will lyft and others, will they be able to capitalize on this as uber tries to deal with the internal strug snlz internal struggles i dont know walter, your snouts. I think its very heart to put travis back in position. Then again, ive seen this movie before as have you, john, which is what happened at apple when in 1985 i think it was steve jobs was moved aside you know, eventually i think travis is so interwoven with this company, i think his passion for it is what has allowed it to groechlt hes goi grow hes going to remain on the board. Hell be involved with strategy. He certainly has a plurality of the stock of the company so i think at some point he could come backst but its something you ought to wait a least six months to a year before you even consider walter, we keep playing this game if, uber were a public company, how would things play out . Its hard to see if this all went down and had this kind of vacant leadership that company wouldnt be considered in play in a potential take over target does that apply with uber being private . Yeah. I mean, obviously with uber being private and so much of the control with travis and garret camp and the other founders, i dont think its a takeover play its a plum opportunity for great ceo to come in if you had a really good ceo who could calm the waters this is a very disruptive company. I have a piece in the New York Times book review this sunday about how its changed everything in terms of urban transportation systems, how he can design cities, how people like myself get around so i think a really its a great job for a really good ceo. By the way, john, youre coming out here, right . Absolutely. It looks beautiful looking forward to that, walter. I know. I want to see you out here its going to be great. Youre a biographer. This makes me think this uber discussion never underestimate the power of imagery rehabilitation i remember when most people seem to hate bill gates around Silicon Valley, even more broadly the arrogance and the antitrust trial, you know, this billionaire who thought he could just steam roll everybody and now he is st. Bill you know, this is a wonderful thing about america, especially in the age of oprah, you know, youre allowed to get rehabilitated. Youre allowed to have second acts and i think, you know, you see it in every industry you can see it with congressman sanford from the congress. You can see people who made come backs. Also, we love, as narratives, as americans, the person who picks himself or herself up off the floor and does a comeback. And travis is not somebody to be underestimated i think the main problem with looking forward to will travis come back, will he step back in, will he be a strategic adviser, they got to tamp down that discussion in order to get a really strong ceo who will feel empowered working for a board in which travis and the other cofounders have so much voting stock. He just stepped down this week, already talking about a comeback well leave it there wall streeter, thank you nice to see you. It does look like youre in sound of music or something. And well see you when cnbc and john fort join Aspen Institute for the festival straight ahead, blackberry shares under real pressure this morning. Ceo john chen is next. And then details on amazons 2. 8 million playbook for the upcoming nfl season. Plus much more on the Senate Showdown over health care. What one medical startup has to say. 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. And at 4. 95, you can trade with a clear advantage. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Amazon doubling down on the bet to stream thursday night nfl Football Games we have more from l. A. Julia . Jon, thats right amazon is starting to shop around the ads that will air during the ten thursday night nfl games. It will be Live Streaming the games to subscribers to the 99 prime service. Now amazon is reportedly looking to charge about 2. 8 million for ad packages. They would include 30 second spots in the games along with other ads on amazon throughout the fall season. Now amazon has the rights to sell 10, 30 second ads for the ten games. They fill in on the local ad slots on the nbc and cbs feeds which it will be rebroadcasting. Now it paid 50 million for those rights thats five times what twitter paid for the same rights last year now its unclear what amazons proposed 2. 8 million package of ads would include but an amazon spokesperson tells us, we can confirm that were offering a range of options at various price points, dpenlding on advertiser objectives. Now for some perspective on the ad rates, tv broadcasts of regular season nfl games were watched by an average of 16. 5 Million People last season. Thats an 8 drop from the year before nbc and cbs charge 550,000 for a 30 second spot last year twitter also bundled in other commercials with its nfl ads that it was selling. It reportedly charged north of 2 million for the packages. And twitter viewership numbers were tiny compared to tv 2. 7 Million Viewers on average watched for atleast three seconds. But amazon just like twitter last year is likely much more interested in what the nfl will do to build its reputation for live tv and what that could mean for its prime subscriber numbers than turning a profit on those particular rights. Guys yeah, julia, im wonld whadeg what a win for amazon would look like here. There are so many different angles they can play a, maybe drive some prime subscribers. But then theyre advertising goods on the game that amazon is potentially going to sell to people who are watching the ads and maybe they can give that data to advertisers. Any thoughts on what a unique amazon win looks like . Well, look, i think this really does come back to building prime as a destination for television viewership. As we know, if someone subxribz subdescribe to prime, snenld more money on products on amazon they can build prime as a great destination for live tv as well as the original. They obviously won some awards for shows like transparent. If they can really change the way we think about subscribing to amazon prime and really seeing value from a television perspective, i think that will have big value for amazon down the line now for now, it seems like theyre just filling in those slots. It will be interesting to see if maybe down the line they can make those ads more interactive which as you mentioned could have some real value for seeing, you know, how people shop and what they can do there yeah, jewel yashgs i guess like so many things with amazon, fwz a long term play, not necessarily about the financial return immediately well be watching. That thank you very much exactly and when we come back, well have blackberry ceo john chen. The stock was getting hit pretty hard down 11 it was down about 12 . Although up very big year to date ahead of this well take a look at that. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. They are the natural borns enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. Take a look at shares of blackberry, down 11 the stock sinking after they reported First Quarter earning ntz black with sales though lighter than expected. The stock is still up nearly 40 over past three months joining us now, john chen, ceo of blackberry. Good morning, john good morning, john. Now if you will, explain this enterprise issue for me. What happened in the quarter a lot of investors getting spooked by Enterprise Sales not being as strong as they expected vm wears and user competing group which you compete with, sales were up 20 year over year yours not so strong. Why . Thank you for giving me a chance to talk about it. A year ago we have a a revenue from Good Technology acquisition thats came off the Balance Sheets so if you take that off, i provide that explanation in our filings. You take that off the year over year growth of our Enterprise Business which is 12 . So its not as people think there is not growing at all. Not that its not growing at all, but blackberry and focus on security and that end Point Management some people would hope to see you a bit stronger what do you have to do to get those numbers up even higher into the double digits it will come. I still maintain that our fiscal year of growth rais rate is going to be 10 to 15 and in it is a lot of project were working on some of them obviously based on cybersecurity. There is positive news that investors like at the same time, cash is roughly close to half of your market cap right now is that pose any dangers as far as how careful you need to be in allocating that cash yeah. I mean, the allocation of cap stall very important we now have a buy back program put in place this is a buy back program and we will be doing acquisitions this is a part that you follow the company for a while. You know that were in about the time to break out and do some investment of growth thats part of our big brand here john, what areas do you think in terms of an Acquisition Strategy youre going to be most focused on a couple areas. I think the whole cybersecurity is especially to the whole newer area of Machine Learning related to cybersecurity, were a leader in that space. We really would like to add more capability and features there. That is one part of it and they can apply back to our Automotive Industry business as well as our Enterprise Business that we talk about and in the other area is about expanding the channel and the reach for our auto business and our other business we have a very commanding lead for auto software. We like to expand that and one way to expand that is we have to expand our footprint and in reaching, you know, much more globally. So those are the two areas that were most interested in at this point. John, explain the relationship with qualcomm at this stage they were not thrilled to have to pay you almost a billion dollars. But at the same time, youre hoping to capitalize on qual comes move into the car with the qnx technology what is the relationship like and how are you building it . The relationship is quite good we have a disagreement over the licensing and contracts. Both sides agreed to be friendly and whatever the outcome is going to be and then, you know, we happen to come out, you know, in my mind obviously the right way. But we also are working a lot on technology in addition to the security technology, we have always been working with, we just released a new product called hyper vicer it is for the car industry and they have adomented thpted put it in the auto dashboard so were Work Together we enjoy working with each other. And we respect each other as companies. John, how you are finding the Competitive Position of blackberry when it comes to talent these days . You spent a lot of time in Silicon Valley waterloo has been through difficult times with blackberry itself shrinking you are finding the engineers you need yeah, were very fortunate. I just went and talked to a whole bunch of our coops and people from university of waterloo we have great relationship with university especially in the university of waterloo its right here. Theyre one of the best Computer Science programs now thats not a well kept secret a lot of our competitors talents knows that so you see a lot gf names out in the waterloo area. This area is booming but theyre turning out a lot of good talent blackberry being a canadian name, company, we also have some advantage, may not be a huge advantage, but there is some advantage in attracting talents. Also, i think we should not underestimate the company turned and, you know, we are doing well from a financial point of view, were investing. And people like that especially young talent really loves that yeah, its been quite a ride seeing you turn this from a hand set company into more of a security play. John chen from blackberry, thank you for joining us thank you, john still to come on squawk alley, pipeline getting a little crowded here. And sestry. Com and blue apron, well have all the details for you next [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Im courty reagan, here is your cnbc news upday iran holding antiisrael rallies to mark jerusalem. Theyre burning the flags of both countries London Police say manslaughter charges are among moves being considered over the apartment complex fire that killed at least 79 people. It said the fire started in a whirlpool hotpoint freezer south korean president watching the test launch of a Ballistic Missile that is being developed by the countrys military south korea has been working to develop missiles with a range of 500 miles under an agreement with the u. S french authorities are investigating the death of a fitness blogger hit by an exploding whip cream canister that was withdrawn from the market in 2013 the 33yearold rebeck why berger zied sunday after the can hit her in the chest causing her to have a heart attack that is your cnbc news update for this hour now back over o squawk alley. Thank you very much appreciate it. Lets get to the european close. Haishgs mieuropean stocks see under pressure due to the bear market in oil prices consumer goods and health care moving lower as well meantime, there are some signs of slowing Economic Growth in europe the eurozone coming in at 55. 7 in june. That say fivemonth low. Germany slipping to 56. 1 france read 5g 5. 3 but Manufacturing Activity was a bright spot. The year is experiencing best quarter of growth in six years how does that impact the currency market snt euro rigz against the dollar today, recouping losses for the week. Another big story has been on the m a front. Glencore sweetening the deal for their rio tint yoe they rejected the previous offer in favor of a lower bid from a china eyes miner that offered better value and certainty for shareholders european leaders wrapped up their summit meeting in brussels they reaffirmed their commit ment to free trade. The leaders agreed to extend sanctions against russia for another six months with one week to go until the mid. 20617, the s p 500 now outperforming the euro stocks. Can you see stocks up about 7 so far this year another global story we want to bring you, we just got a list of american executives that are expected to meet with indias Prime Minister on sunday ahead of his facetoface meeting with President Trump on monday at the white house. Who son the list well, all the big tech ceos, michael cook, nadella and jeff bezos. Indiana is the Fastest Growing smart phone market in the world and expected to pass china in the coming years nontech people meeting modi, doug mcmillion, alex gorsky, irene rosefield and David Einstein of carlyle group. Hes only in the u. S. For two days but the wideranging list of manage ment he is leading to a testament to the importance india plays for wall street and Corporate Executives a very popular gichlt and a busy year ahead for the ipo market lets send it over dom chu. If you look at the ipo index, joit performing the s p 500. You can see there soefr tover t course of year to date period, up 2 . Up about 8 to 9 in that time so these hot ipos, yes, theyre a big thing. There is at least a little reason for at least maybe some temperature prance of that whole feeling. 69 ipos price sod far this year. We had 105 total prices in 2016, total for the year but were down from the 2 p 75 we got in 2014 we raised more than 19 million this year than we raised in all of 2016. But a far cry from the 88 billion we raised back in 2014 now if you take a look at the ipo standouts so far this year, of course everybody benchmarks to snap. It was the biggest one so far. The shares up 4 since the ipo canada goose a standout, up 73 . Two of the one thats really stand out from the up and down side, floor decore this is a hard wood floor company. Up double since the ipo and then keane group lotion a quartsing their values we have ten more and including possibly blue apron. Getting very busy on the floor. For more on the ipo market, lets bring in rich peterson, senior director at s p capital iq and an investor in a lot of these recent ipos including snap and yext so, rich, why now . Why does the spigot seem to be turning snon. I think dohm mentioned this is a continuation of what napd 2015 and 2014. Year to date were tracking about 80 offerings that were priced raising about over 22 billion. Look back last year, you have to take into consideration First Quarter of 2016, markets were in a lot of turmoil we bot tomd at 1822 on the s p 500 back in february a lot of hand wringing and deals were pulled. But now were back to where we should be. We have ten deals priced or scheduled to price next week raising about a billion dollars. I think one of the underlying stories that are not told is that stack is back meaning special Purpose Acquisition Companies are among the bigger deals this year fact of the five largest filings in the past 30 days, three have been spax and if you look at spax as an industry class by themselves, theyre second only to technology. About 3. 7 billion raised in stock ipos technology is the number one sector thanks to snap with 4. 7 issuance. Lets stick with the tech ipo theme, sanldy. Ill ask you, what lesson from snap forrest of the Companies Going public after that strong runup to the high 20s back down to the ipo price of 17 . Lets keep in mind that snap was priced at a price 17 above the initial range of 14 to 16. So trading actually 18 bost original target price. I think when you have the High Profile Companies that theres a lot of speculation and excitement around them, they can be volatile. We saw that with facebook several years ago. And, of course that, turned out extremely well so funneldamentals are strong a snap and i think the initial performance and ipo ran up a bit, ran down. This is not uncommon for ipos. Overall, tech strokz ocks are u from the offer today that is providing a lot for Portfolio Managers and a lot of excitement around the secretarior. One thing i note is that a little different than what rich talked about in the broader ipo market, in the tech market, 2014, 15, 16 were quiet years as people generally financed in those robust private market. So 2017 has been a very bullish year for tech ipos i think there is a lot more to come later in the year rich, what is the effect of uber if any on the prospect for ipos coming up i mean people have been looking forward to ub eastern air b b. Now uber is having a lot of trouble. What happens you know, ubers difficulty may lyfts benefit well see how it plays out there are a lot of private investors whether its fidelity and institutions and premarket ipos i think for a company that size, you know, its a decision do they come to the public sooner rather than later . Sandy, you mentioned snap is above that initial range maybe they got to where they wanted to be but there is a ton of scrutiny about the Business Model im also looking at blue apron that Immediate Reaction when you see that filing, is everybody pulling apart the Business Model and basically having skepticism. Maybe thats different just because of the way the cycle is right now. But do you that i there is a tense out there that from day one these companies have to kind of fight uphill to get the story out . I think Companies Going public this year are smart theyve been pricing offerings on a relatively conservative basis with a view to try to, you know, facilitate them trading up were not involved in blue apron. As i understand it, the pricing is about two times enterprise value to revenues on next years revenues thats a pretty conservative multiple for a Fast Growing Company that is the leader, actually in, the space where there is a lot of carnage, a lot of startups have not done well in that sector but theyve emerged as the clear leader so, again, were not involved. But i would say that it looks like a promising ipo there is another one next week actually called tintry, were not involved but its a smaller cap company its going to be a test of whether the tech sector will take some of the smaller cap names. Im interested in. That theyre both expected to price i believe midweek next week finally, rich, do the prospect change for blue apron ipo after amazons deal for whole snoo whole foods . They have to deal with fame world. Now they have to deal with a poor world the poor world is the post amazonwhole foods world that is something we have to take into account. Blue apron issue, average sales are flat according to the s1. The question is does blue apron come to next app dynamics meaning cisco dynamics before the offering well, you know, next week will someone look at a William Sonom say this say great marriage glchlt interesting theyre seek 3g . 2 billion valuation. Well leave it there, guys lots to talk about these days with ipos. Come back. And when we come back on squawk alley, details on youtubes run to number one in terms of monthly active video yusers first, rick santelli, whats on your radar today everybody smiling say cheese the last open outcry cheese auction is going to happen in the next few minutes this is a wonderful pit down here then well still exist theyll have cash Market Options just like milk and cheese are still around but its the end of an era maybe the beginning of a new one. Well be talking about fattening your wallet after thbrk. E ea today on halftime report, tom lee just dropped another bomb on stocks hes with us live with a note every investor needs to see today. Plus, are the popular Growth Stocks that driven the rally in a dangerous bubble and well discuss at noon on halftime. Well see new 15 mike all right scott, yeah, a lot of casual bubble talk. Well tune n now lets get to the cme group. Rick santelli has the Santelli Exchange thanks, mike. Not all pricing issues were created the same okay so whether youre looking at inflation or deflation, there is a lot of variables here. So in a world that is consumed by debt, if you have a building that you owe x amount of money on and we dont see any inflation, thats not nearly as good for whoever is holding that debt as if there is a lot of inflation and they could kind of roll their way out of it but when it comes to other things, maybe it isnt quite the same think back to 1970 look up what it cost for a calculator that you could buy and the check out at a drugstore for 1. 99. Look how much that was in 1970 the reason i bring it up, the marriage between amazon and whole foods, its gotten a lot of talk this week and justifiably so i mean amazon has redefind so many things and their distribution makes so many more things possible. But heres what my thought is. When you think about the fatness of everybodys wallets, especially the middle class, lower middle class, even the upper middle class, the thickness of this wallet hasnt changed much in the last ten years. Wages have been pretty flat. So if wages are flat, how can we make this wallet go farther . Well, think about that calculator and also think about why many are saying and justifiably so under pure economics that marriage between amazon and whole foods is deflationary theyre going to bring pricing pressure theyre going to be the disruptor. But when those prices go down, it makes the same thickness wallet whats inside go much farther. I think we need a rethink about pricing and pricing pressures. You know, we had models that the fed used that they want to create capital and liquidity right after the crisis and they did but where it ended up wasnt model driven in other words, the models didnt sense and end up in stock buy backs. Im not saying thats a bad thing. But in the end, logics can trump the fedonomics because pricing is a complex issue it shouldnt always be the bogeyman i understand that inflation makes a lot of debt issues go away but less of it makes this go farther. Exactly, who does the fed want to benefit and for how long . Mike, back to you. All right rick, thank you very much. Rick santelli. When we come back, one startups take on the Senates Health care showdown the ceo of dr. On demand is next 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. And at 4. 95, you can trade with a clear advantage. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. [ laughing ] oh. This guy, the mansion and the cars. This is the best . I dont like it. Gru, villainy is in your blood. [ evil laughter ] [ minions shouting ] look at us, two brothers pulling a heist. [ upbeat music ] [ gasps ] im gonna be empaled [ chuckles ] im okay. [ exhales ] despicable me 3. Rated pg. A Senate Showdown is looming over the republican plan to repeal and replace obamacare Kayla Tausche is in washington for a look at that fight hi, kayla. Hey, mike gop senators are digesting the bill back home as it gets attacked by the left and medical industries but two events could make or break it first, the president getting involved personally to win over those on the fence but second, the cbo score. Polarizing if it resembles what the score of the house bill was. The senate used the house bill as a base laine to allow for a quicker score, but the association may make it unpopular with the public. An nbc news wall street journal poll found that only a third of republicans thought the house bill was a good idea and when asked which party would deal with Better Health care, democrats scored 17 points higher than republicans from respondents. The medicaid changes are also the most politically fraught republican senators in states that expanded medicaid cant just easily rescind coverage for millions of lowincome people and two of those senators are up for reelection next year. This morning, senator bill cassidy suggested a plan to move medicaid enrollees to the individual market, saying, quote, if Medicaid Expansion goes away and there is no coverage, thats a bad thing but if they move from medicaid to private insurance, that could be a good thing. Problem is, thats something that would have to happen at the state level, after the Senate Passes the bill. And we still have a ways to go there. Mike all right, kayla, thank you very much. And our next guest helps the patients skip the waiting room by bringing doctors to them through telemedicine with the possible repeal of the Affordable Care act, what could Health Care Look like in the future Hill Ferguson is the ceo of doctor on demand that provides ondemand doctors, pediatricians with, a pediatricians, and psychologists by smartphone or computer. And ive actually used doctor on demand youve added lab results now and youve added lab results how will blood tests, i assume that means, fit in with these Virtual Services youre using, kekdi ing connecting real people to real doctors . Thats right, next week will be the first Telemedicine Company to fully integrate national lab testing companies, lab core and quest so the way this will work is, in the course of a normal checkup or doctor visit on our platform, our doctors will be able to order any one of hundreds of lab tests for their patients, and then after the doctor visit, the patient will be geolocated on their device or computer and theyll be able to see the nearest labs closest to them, as well as the ones that accept their insurance, and theyll tap which lab they want to go to, and we will electronically send the order to that lab. So all the patient has to do is show up at that location, take a blood draw, and leave. And then we follow up with them as soon as the next day, with the results. Now, this narrows the number of services that youre unable to provide you can provide a lot through the phone. And this must attack costs do you have an estimate on how much more affordable this is as a process versus people having to get to a Doctors Office and what impact that can have on Health Care Overall . Absolutely. Its a huge cost savings opportunity for the American Health care system every year, about 1. 3 billion doctor visits occur across Doctors Office, urgent care clinics, and Emergency Rooms each time that happens, a different level of cost is incurred so with telemedicine, were able to deliver care at the praise of roughly 50 per interaction, whereas that equivalent cost is anywhere from 1,000 in an emergency room down to several hundred dollars at urgent care clinics or Doctors Offices. So its orders of magnitude in terms of Savings Opportunities for the system im sure youre used to making the case for telemedicine, hill so ill just ask you as someone who frequently visits the doctor, how can you really make diagnoses over your smartphone without touching or feeling or seeing the patient and how do you actually make treatments, as well . Sure. So its a very common question we get and our doctors are fully trained on delivering a physical examine remotely in large part, the way it works is doctors coach the patient to go through and do things, such as, you know, take their pulse or feel other parts of their body, to help them with the diagnosis. To be clear, telemedicine cant treat everything, but our service can treat 90 of the conditions that come into the emergency room and every year, 52 of emergency room visits are actually cases that could be treated through primary care and so, again, back to the savings opportunity, not only can we save hundreds and hundreds of millions of dollars, we can also open up access and bring a more convenient method of Health Care Delivery to consumers at scale and hill, whats the appeal to the doctors, to the health care providers, if the economics are so good on the customer side its a great question and our doctors are fully employed in our practice and one of the reasons theyre willing to leave their private practice or leave their current role is because we take all of the administrative overhead off their plate and let them Practice Medicine in its purest form so they get to work from home, number one so they get massive amounts of lifestyle flexibility. They also dont have to deal directly with Insurance Companies or with any of the administrative overhead associated with renting office space, having partnerships, employees, clerical staff. We remove all of that. Which if you talk to any doctor today, theyll tell you they spend half of their time not working with patients. And so being able to spend 100 of their time helping patients is the big emotional lift for doctors. Hey, the doctor i had seemed happy. Allergies had just punched me in the face i opened up, said, ahh, he checked my throat, wrote me a prescription, it was great hill, good luck and thanks thank you thanks for using us. All right, the dow is up about 14 point quk le wl rhts. Back e had to be in the office. We lacked the technology to be flexible and productive. Then cdw orchestrated a collaboration solution for us. Using the lenovo x1 carbon. Powered by intel core processor technology. Now we can access our network and Work Together from anywhere. Hey hey everybody. 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But under the proper care, they become something beautiful. A big milestone for online video and Googles Youtube the service announcing yesterday it now has 1. 5 billion active monthly users. On average they spend over an hour a day watching video, just on mobile devices. Thats not counting desktop. Company Ceo Sundar Pichai also tweeting, great momentum what i found interesting was, they actually also shared that logged in users spent an hour of more than one hour per day watching youtube video, just on mobile devices, something that youtube is painting as a huge opportunity. First of all, it surprised me on how long it was. Second of all, theyre comparing that to the tv where kids are spending hours a day my kids are dragging the average up what are they watching . Theyre watching halftime report, which is coming up right now. Well throw it to headquarters for that and welcome to the halftime report. Im scott wapner our top trade this hour, why a onetime raging bull is now growing even more worried about the rally. Why he thinks a bill pullback is coming with us for the hour today, josh brown, jim leventhal, and kate moore is here. Blackrock chief equity strategist also with us today from minneapolis is Pete Najarian lets begin with that breaking call from tom lee, slashing his earnings outlook today for the remainder of the year and next the