Transcripts For CNBC Power Lunch 20170817

We will have the very latest from barcelona ahead, as power lunch begins right now. And welcome to power lunch. Im Morgan Brennan stocks are sitting around session lows right now nasdaq, the biggest loser. That is down more than 1 . Tech and industrials, the biggest drags today. So check out some of the individual movers. We have got mylan is moving higher its bucking the trend that company is finalizing a 465 million deal with the Justice Department to settle claims it overcharged the government for its epipens and alibaba, rallying on its earnings beat. That stock is up 4 . L. Brands, plunging to new lows on the back of its weak outlook. And walmart lower, despite beating estimates. That stock is down more than 2 . We are going to have much more on whats going on with that stock, straight up ahead morgan, welcome to power lunch. Im Brian Sullivan we begin this hour with breaking news from spain, where a truck rammed into a crowd, one of the main plazas in barcelona it is now officially being called a terror attack lets get to sue herrera with the very latest. Sue . Brian, thank you very much. We know at least one person is dead and multiple people are injured. It has now, officially, as you mentioned, been declared a terrorist attack it took police some time to give it that designation. Just about 5 00 p. M. Barcelona time, this white van jumped the curb and plowed into the very crowded city center of barcelona. This is a big tourist area, it is the height of tourist season. We had the Police Actually termed it a massive crash. The 20 injured figure is coming from reuters we have not independently confirmed that number. We are awaiting a police briefing, which we believe will come in about half an hour quoting Unnamed Police sources, one of the newspapers in that area also said that two perpetrators of the crash were holed up in a bar or department store. Nbc news has not been able to confirm that at this point reports were that the driver of the van got out of the van and fled on foot and that police were looking for that person, that man so right now, what we know is, at least one person is dead. We have multiple injuries. It is considered a terror attack and keep in mind, these are the types of what theyre calling, lowtech terror attacks that we have been seeing in europe recently. Although, interestingly enough, spain has been spared that for some time now. The most deadly attack was the driver of that tractortrailer who targeted bastille day in nice that was back in 2016. Germany has seen this type of low he have tech attack, as well and now, unfortunately, barcelona can be added to that list of terror incidents well keep you posted, brian, on the fatalities, if that number continues to climb, and also the injured. Back to you. All right sue, thank you well, also happening now, President Trump is back in new jersey, meeting with Small Business leaders, working to get the narrative back on point about business and tax cuts. This as the dow posts one of its worst days in weeks. Bobpisani is at the new york stock exchange, but first to eamon javers in bedminster, new jersey hi, brian so much focus today and Financial Markets on the fate of gary cohn, the National Economic Council Director at the white house. Would he stay or depart in the wake of the president s angry press conference on tuesday regarding charlottesville and that racist violence today its thursday morning and the white house has put out a couple of statements let me walk you through what the white house has said about this. The first statement smaild ema me at about 11 07 this morning gary plans to remain in his position as nec director at the white house. Nothings changed. But a few minutes later, the white house sent a statement to the White House Press pool that removed that intends to stay language from the initial statement, updating the statement to say, nothing has changed. Gary is focused on his responsibilities as nec director and any reports to the contrary are 100 false. So a lot of folks immediately jumped on the idea that they had removed that phrase intends to stay from the statement ive been calling around, talking to folks my sense is that some folks at the white house and some folks on gary cohns team felt that that intends to stay language simply wasnt strong enough. Indicated that there was still a possibility that he might leave. And they wanted to strengthen the statement, which is why they put out the additional statement that we saw a few moments later, with that 100 false narrative so the line from the white house today is that gary cohn is staying. Notably, though, we havent seen gary cohn on camera. We havent heard from him directly on this so all of this is being filtered through spokespeople, press aides, white house officials, and all the rest so i think theres a lot of speculation on this. And people will want to hear from gary cohn directly, as to what decision hes making and why hes making it obviously, his focus here on other white house officials, as well but no indication right now that anybody is leaving this white house, guys. Back over to you eamon javers, thank you very much now let us get to bob pisani at the new york stock exchange. The dow posting one of its worst days in week is it about politics, about earnings, about Something Else riskoff day. And its two events we have been talking about all morning have clearly influenced the market, brian. Let me tell you, the s p 500 circled two points here where news events came in. First around just before 10 00 al eastern time, see that first circle there thats when reports came in that false reports, it turns out, that gary cohn might be leaving. Of course, you heard eamon say that cohn intends to stay. Then the second circle, thats when we had reports of the terrorist attacks in spain first coming in. And you see the market again drifting lower so outside events clearly influencing the stock market today. As always happens, the market leaders are the first ones to move down and they are the weakest ones biotech has been a market leader, semiconductor has been a market leader, banks has been a market leader. All among the weakest sectors right now. The volume is light, but heavy for the biggest etfs out there this is interesting signs of ways they use risk off, they go into the etfs and lighten up there. I want to also point out, tomorrow is an expiration day for options. That may also be influencing things a little bit here as for the big sectors that are to the downside, retailers, walmart had a good year, has had a good year and a good report today, but its not changing the narrative for the retailers. L. Brands had poor guidance. Kato corporations, one of the womens retailers had a loss buckle was light this has been the story all throughout the last two weeks here and if you see whats going on, investors are facing these revenue clips. Big drops in researches and lower prices due to the Amazon Effect they want to know, where is the bottom here. We want growth, we dont want just a bottom. We dont see it right now. Its hard to get sales going when you have margins on the lower side many, many 52week lows in retailers. Guys, back to you. Robert, thank you very much with all the drama going on at the white house and in d. C. , more broadly right now, are investors starting to lose faith in President Trumps economic agenda they made a big bet on it, one can say. The dow up 20 since the november election. Casey mathews is the cia of uib banks and jamie cox is managing partner with harris financial group. Lets talk a little bit, any might, jamie, about why stocks are down today, if it had to do with defections from or the disbanding of the executive council, you would have thought all the hit would have been yesterday pop, so why today . I think its about followon. You had the Manufacturing Councils disband over the last couple of days and if it were to escalate to having members of the president s cabinet actually resign, then youve really taken it to another level. And you saw the news with gary cohn a little earlier ago. Markets dropped immediately. And when the statement was released by the white house, weve seen a little bit of recovery and then we had the attack in barcelona. A terrible, terrible situation for the weekend in charlottesville, and the nation of spain its just a terrible situation i think those have contributed to, you know, negative sentiment in the market today. Im sorry, i thought you were finished go ahead and finish. Its a terrible tragedy my kids play soccer in barcelona a couple of times a year its a wonderful city. Its a terrible thing for this type of thing to happen anywhere, and especially in spain. Yes casey, there are a lot of things going on washington drama may be the least of them. Theres a debt ceiling debate thats going to come up in a months time there are sort of economic cross currents the fed meetings the unwinding of qe and so forth. What should i do as an investor, right now, with all of the and oh, my goodness, last week, all we were talking about was north korea. What should i do with my money right now . Sit tight . Well, good afternoon, tyler i would suggest that you avoid the political distractions when it comes to the disbanding of these councils, i think it has very little impact on the markets. The president wanted to get some opinions from ceos he got that message. And now he can move on with his fiscal agenda. So i dont think a lot of these things have a Material Impact on the markets longer term. Clearly, on a temporary basis, theyre going to have some ripples through the markets. But at the end of the day, many of these issues dont impact the underlying fundamentals of the economy, nor do they impact the underlying fundamental s of thee companies that were talking about and earnings growth. Kc, if all of the news weve seen this week involving the president and corporate america, if the war of words with North Carolina last week didnt do it, what is it going to take to get that pull back that everyone weve spoken to has been looking for, from this market right now . Well, keep in mind that the markets have never been accommoda accommodating. Of course, everyones looking for this pullback to deploy riskbased assets. Maybe the market will melt up 10 and then you will see the correction but thats a good question whats the trigger for the correction and it could be a fed mistake, whether theyre too late in hiking rates or they move rates too fast, too quickly, which doesnt seem to be the case right now. It could be a military conflict or geopolitical tensions, which we saw last week that doesnt seem to shake the market i really think that theres a number of things that could cause the correction, but the bottom line, i think investors are still looking through those and looking at corporate Revenue Growth and corporate earnings. Right jamie, let me give you the last word here if you were going to point me to the singlemost opportunistic investment i could make now, stocks, bonds, sectors or what, between now and, lets say, the end of the year, what might you suggest . Well, i think energy has been absolutely obliterated over the last couple of weeks and i mean, youre at a point where people are starting to throw away really Good Companies right now, like exxonmobil and places like that so i think that is a place where i think you have a great opportunity. The expectations for oil price is, citi came out with a report today, saying oil is probably going to stay between 40 and 60, maybe on the lower end you can pick up energy right now as a really Good Opportunity thats what i would do jamie, kc, thanks very much appreciate it. Thank you thank you perhaps no group in america would benefit more from tax cuts than Small Business owners, because many simply pass through their business income to their personal tax returns so are Small Business owners still confident the president and congress can get past all the outrage of the last few days and get their agenda back on track. Lets bring in joe dutra and phillip, ceo of bamako phillip, do you believe that the socalled trump gop probusiness, lowtax agenda can get done do you believe that tax cuts, especially for business owners, will happen by the end of this year well, wii dont know about te time frame, but i believe, i have hope and optimism that, you know, this is going to change. Were going to see a we want to see tax reform in the u. S. For Small Businesses, because its what drives us. Its the kind of thing that helps us create more jobs and expand and buy more equipment. And those are the things that we feed to be really working on we focus on so many infinitesimal Little Things every day in the news. And we really need to be focusing on Small Business and tax reform do you think that many, maybe the media included, joe, puts too much onus on the president to get this done after all, it is the 535 or so members of congress, the men and women there, who actually get the legislation written and done, with the exception of trade, the president doesnt have a lot of unilateral power are you confident in this congress well, i think the congress, for a couple of administrations, has been, you know, fighting each other hay just need to be able to start to Work Together and look at the businesses and the people of the United States and do whats best for them you know, i think what we do is we concentrate on such Little Things that really dont affect the daytoday life of a Small Business or an individual in the mi midUnited States. I think what happens is, we need to be looking at what makes america great. What makes business stronger what helps our communities grow . And i think congress will eventually get together and start passing some bills that really benefit the u. S joe, ive got a question for you. I a lot of my family members are Small Business owners. Theyre also cardcarrying Trump Supporters everybody has slammed the White Supremacists and are horrified by what happened over the weekend. Not necessarily thrilled with how the president reacted in the days after it. That said, what they have said to me is that we are missing a broader strategy thats been playing out with this president since he was on the campaign trail. This whole idea of draining the swamp, this idea of going after fat cat politicians who have sat in an inefficient washington after corporate america, ceos who have offshored and participated in wage arbitrage for way too long and they say, this is all part of this broader strategy by the president and its all meant to get us towards a more focused economy on the American Worker what say you you know, i agree phil, go ahead and take that question, please okay, phil. I think when it comes down to it, one of the things thats most important in business is predictability and right now, the administration, nor congress, is providing any sort of predictability on health care nor are they providing any kind of predictability on tax code, on any kind of import taxes, on Foreign Policy and so while day to day, we do try to focus, as joe said, we try to focus on a lot of the small micro things that run our businesses, the macro things matter business is difficult enough on a micro level. We dont need to have unexpected surprises from the macro side. And i think thats making things difficult for not any company thats Small Business, but also for large businesses, some of our customers. Im looking back, phil, to last area when the market sort of meandered just a bit and there was an awful lot of unpredictability, centering around the outcome of the election now that is solved the one thing and i take your point about unpredictability about health care and taxes and all of that stuff, trade, what have you but would you would you stipulate that the one thing that is predictable is that with the gop in control of the house, the senate, and the administration that the Business Climate with respect to regulation isnt going to get worse. If anything, its going to get bette bette better yeah, i think thats a fair speculation. I also believe theres a lot more to it whether or not things just get worse or stay the same. I think most of the expectations that are already built into the marketplace is that things will get much better. And without any Real Progress at all in congress or through the administrations acts, and a lot of distractions coming through, i just dont noeecessarily see that happening and most of our customers who are the fortune 1,000 businesses of the world, theyre putting their budgets on hold. And i see that all the time because of the unpredictability of whats to come. Quickly, philip, is their patience wearing thin . Yeah. For sure, 100 most people in the Business World want to do business. Ill tie it off one way, joe. I dont want care whos president , americans are going to eat candy, right . Thats right. Because life is sweet. Life is sweet they are going to eat your candy. And lets hope they eat more of it joe, philip, god bless you thank you all right, back to sue herrera now and new developments in that tragic barcelona attack. Sue . Yes, we just had a briefing by the interior minister and he gave us some updated figures one person is dead 32 people are injured. Of those 32 injured, 10 of those injuries are serious so the interior minister says the death toll could go higher so 1 dead, 32 injured, 10 of those injuries are serious at this point we are still waiting for more information. It was a very short briefing from the interior official, just a short while ago. Ill be back at the bottom of the hour with the very latest for you. Back to you guys morgan thanks, sue and thanks for continuing to brick us those headlines still ahead, apple, facebook, paypal, tech turning up the offensive against hate groups. But should they be acting as the a arbitrators of free speech but first, he owns one of the Biggest Trucking Companies in the country and does a lot of business with mexico and canada. Warner enterprises ceo is join us next with the ceos exit from the president s councils, naa,ft and doing business with trump. Power lunch is back in two minutes. What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. A rough day for stock investors, getting worse the dow down 178 points right now. But in the meantime, lets get to seema mody with the market flash. Seema . Hey, brian, i want to draw yard attention to the dow transports index near such a low, down close to 2 the index on pace for its worst day since july 27th. All components trading in negative Territory Airlines leading the declines. American, delta, southwest, alaska among the key laggards. And take a look at shares of jetblue, down by the most, off by about 4 on pace for its worst day since july 27th. Morgan stanley cutting the Airlines Price target to 23 a share, but maintains an equal weight rating. Overall, transports are up still about 2 so far this year. But clearly, a tough day guys, back to you. Thanks, seema yeah, i should note, every single component within the dow transports right now is in the red. Weve seen a slightly stronger dollar that certainly has an impact but also, perhaps no more than any group thats publicly traded these guys stand to benefit the most from fiscal policies. Tax reform, insure spending, you name it, theyve been lagging for the past month and if youre a believer in the dow theory if you believe that transports lead the overall market, which is an investing theory that goes back well before even your time, todd hundreds of years goes back to the button wood agreement of 1792 or whatever it was, this is an ominous sign for the overall market, potentially. Weve seen a bit of a divergence the one group i would say has been showing some strength and is up, many of the names up double digits so far this year is trucking, which brings us to our next guest so of all the noise out of washington lately, has cast a shadow on what normally would be the big story. Infrastructure and nafta this week so where does the u. S. Stand when it comes to trade right now. Joining us now is a ceo who has a big stake on the outcome of u. S. Trade talks he is derek leathers, president and ceo of we arenrner enterpris great to see you and speak with you again. Great to be here, morgan. I appreciate the invite. All right so nafta talks kicked off yesterday. We had this infrastructure deregulation event that got very overshadowed earlier in the week lots of question marks about whether tax reform is going to happen pbefore the end of this year or at all whats your take, in light of all the events that weve seen well, something, obviously, were keeping a close eye on on the nafta side, we think it makes sense. It makes sense to take a look at a 20yearoldplus agreement we hope its a donoharm kind of approach. We have a lot invested in mexico and our trade partner in mexico and look forward to a successful outcome. And as long as were focused on making it better and improving whats already a pretty strong foundation, we support it. What percent of your business is crossborder . So were the largest truckload carrier doing business to and from mexico today roughly 15 of our total business is to and from the southern border. Wow very, very, sbrerinteresting th. How is business . Wbusiness is good you know, business has been picking up throughout the First Quarter and had further strengthening in the second. Mexico in particular has been a trading partner of strength, relative to trucking weve seen more flows year over year again, its been the tenth Straight Year for us of growth in mexico on the southern border so overall its strengthening. Its not robust, but steady, gradual improvement throughout the year and derek, as a truckload carrier, you haul a lot of freight to the retailers, including some of the big box retailers. From your Vantage Point on the ground, is retail in a secular decline . What are you seeing in terms to have the activity there . You know, i dont think you can broad brush retail right now. There are winners and losers in retail like there are in any industry were fortunate we work with some strong retailers, whose business is up and theyre doing very well. There are others, obviously, that are struggling. In general, we think the inventory correction of 2016 is by and large in the Rearview Mirror we see retailers being slightly more optimistic as they start to prepare for this peak season and as a result, with roughly 50 of our business in retail, were certainly seeing demand increasing in recent weeks and that trend continues as we talk to them about the fall season and fall surge you know, derek, no industry is better of a leading indicator than you guys, really. And theres been a lot of questions about, why has the stock market done so well, even with all the d. C. Dysfunction . Ill ask you directly, is there any sign that the u. S. Economy has slowed down in the last few months, specifically related to anything that has happened in washington, d. C. No, i dont believe the u. S. Economy has slowed down due to d. C. Activity. I think its fair to say, there was optimism postelection and optimism as we thought about a, you know, a loosened Regulatory Environment or an environment that might be slightly probusiness i think its also fair to say, we havent seen a lot of that come to fruition just yet. But i think people still believe that the underpinnings are Strong Production in the u. S. Economy seems to be picking up albeit, perhaps at a slower rate than some would like and i think we still believe were going to make progress on leveling the Playing Field on t taxuatiation on other items tha bode well for u. S. Manufacturing and u. S. Business. Its been a little slower coming than we like i like a guy like you when asked a yes or no y, you say yes or no. You said that 15 of your business is across the southern border of mexico how concerned are you that the nafta negotiations could mess that up, reduce it if the if the discussions dont go well. And what, if any plans, are you making now with that in mind so a couple of things is there correspond, sure . Yeah, we watch it very closely we stay in touch and i spend more tame in d. C. This year than i have probably in years past. But the reality is, you know, the u. S. Trades over 1 million a minute with mexico too much of our economy is tide to our trading partners, both in mexico and in canada, for this thing to be completely dismantled or blown up you know, we believe that, you know, it, makes sense and we support the initiative and the effort to renegotiate or relook at nafta, as long as its a trilateral agreement that were all at the same table and working at it diligently and with some eye toward the overall economy. You know, i think north america is better for it i really do. But i do believe there are things that need to be addressed. So if we can go in and sort of remodel the house and not consider it a teardown project, we would be a lot better off and i think thats the mindset that people are taking we certainly must keep a noharm approach to Overall International trade with our two neighboring countries, if were going to have success, as we go through this and derek, we have to wrap this, but just one last question for you. In light of what weve seen in the last couple of days, have you felt it necessary to address your employees and your workforce, in any way . So, first off, we address our employees and our associates on a regular basis. I have town Hall Meetings all the time i dont choose to usually react or try to schedule them in response to one specific news event, but rather stay in front of them. So we bring all of our associates together and those that are not in our corporate, they get it via live video feeds and its something we do monthly or as often as needed. I believe its a difficult time were going through, as a country. Obviously, theres a lot of controversies out there. But cooler heads will prevail. I do believe theres a whole lot more people on the same page looking to Work Together, and looking to unite than there are people on the fringes and edges that are causing, unfortunately, all of the focus to be away from the truly kind of united group that this country represents and i think well get through this, just like we have many other crisis, as a country and our focus is to continue to just deliver goods for america every day and move america forward. So im excited about the future. Great derek leathers, always great to speak with you thank you for joining us today lets go back to sue herrera now for an update on the situation in barcelona sue . Thanks so much,ty we want to recap everything for you at this point, everyone. A white van jumped the sidewalk in the citys historic la ramblas area officials expect the death toll to rise. Police in barcelona confirming to nbc news it was, indeed, a terrorist attack they have cordoned off the street ordering nearby metro and train stations to close. Theyve asked people to stay away from that area, so as to not get in the way of Emergency Services the driver of the van reportedly fled the scene he is still at large pap senior white house official telling nbc news that white house chief of staff john kelly is aware of the situation. He is keeping the president abreast. And were going to get some sound, eventually, from secretary of state tillerson, just a few moments ago and basically, he reached out to americans, saying, if you are in spain, if you are in this particular area, let loved ones know that you are safe and the u. S. Consulates and embassies are basically coordinating with americans that they know are in spain all right, sue, thank you very much. Walmart beats the street, but investors were not impressed. Well talk to an analyst whos not worried. Thats next. Walmart out with earnings beating the street the company posting its 12th straight quarter of positive u. S. Comps, but the stock is lower. Its down almost 2 , one of the worst performers in the dow today. Joining us now on the phone is karen short. Shes an analyst at barclays karen, why is this stock lower well, i think going into the quarter, you know, expectations were definitely high i mean, i think there was potentially some expectation for the u. S. Comp to be, you know, with a 2ish handle on it so i think that was really the reality. I dont necessarily think that all of the results are an indication that anything is wrong. In fact, i think what they indicate is that the company is staying the course theres no you know, theres no bumps in the road theres nothing that taking them offcour offcourse theyre staying the course and executing extremely well and i would point to some comments and comparisons that have been made to target keep in mind that targets twoyear traffic is still negative and, you know, obviously, walmart has been posting consecutive positive traffic in the u. S. Kauren, its brian, i had rea somewhere that a target or walmart sells is Something Like 85 to 95 of the same stuff. Bounty, paper towels its very, very similartype merchandising. Regardless of the actual number, given what you just said about target, should we assume that, forget about amazon, that walmart is stealing the target customer well, not necessarily i mean, obviously, theres overlap. But walmart is much has a much heavier emphasis on fresh perishable food. Keep in mind, 50 plus percent of their sales and when you include pharmacy, 57 of sales are what you would get within the four wallace of kroger. So i would say theyre steal sharing from a wide range of conventional food retailers, as well as target but its definitely not a zero sum game between target and walmart. The stock down about 2 toth. Karen short, thank you very much appreciate it. Coming up, there has been a huge turnover in manufacturing jobs but guess what, your next guest says that ulbe acod very good sign of things to come well tell you why, coming up. Welcome back to power lunch. Stocks are sitting around session lows right now the nasdaq is the biggest loser. Its down more than 1 the dow also down about 168 points and the s p 500, also down about 22 points tech industrials and financials, those are the biggest drags today. L. Brands, the biggest loser in the s p 500. Thats down about 9 on a weak outlook, guys. I guess they need to consider bringing back the swimsuit line for victorias secrets just saying. No it works for me no insight . If youre in favor of it, morgan, im in favor of it as the lone female. Isnt it a good sign when somebody quits a job some would say yes, especially when its in manufacturing and thats exactly whats been happening lately more workers are quitting than at any time in years joining us now, angie car clich, and christian zimmerman, an economist at the st. Louis fed when is it i guess thats the riddle, angie. When is a good sign when people quit does that mean theyve got the confidence that they can get a better job someplace else . I think thats absolutely correct. Whatwear s were seeing right na multitude of sectors is their individuals are able to make choices around their Career Pathways and leave an employer and find a job in another sector or in manufacturing as well, that pays and also provides even better benefits. You know, weve talked a lot, obviously, about the political events, the rhetorical events, the terrible events of last few days, angie, but it sounds from a feetontheground perspective, is the economy good in indy . The economy is very good in indy we have an emerging tech sector, and our manufacturing hub continues to grow. We have employers that are just hungry for employees that have the Skilled Labor thats needed to help them grow. So christian, what happens when a person leaves a manufacturing job, are they getting comparably paid and comparably benefited positions elsewhere . I dont think we really know from the data. We know that theyre quitting, so they must be going for better or more suitable jobs, so it must be better i doubt that you would quit your job to take a lower pay elsewhere, right unless you retire, christian. And manufacturing jobs are not always the easiest, right . I dont know. It is possible quality of life or ours or physical strain in a manufacturing job or repetition that might make me choose it but i take your point p, i mean yeah and retirement is not considered quitting in the statistics and just to sort of piggyback on that, when you see churn like this happening within the Manufacturing Sector or really any sector for that matter, its not necessarily good for the employers. It costs a lot of money to hire and then retrain new workers but it is potentially good for the employment market. So when do we start to see upward pressure on wages, if this is whats happening within manufacturing right now . Christian . I have really no idea it is true that its kind of a puzzle, that this is a recovery where you dont really see the wage increases that you have seen in other recoveries the recovery has been really slow on the labor market and has been essentially on the total employment but its not happening on the wage side, pretty much but who knows. Maybe we are now at the point where its going to happen angie, while we like having guests like you on, you dont have to theorize about this. This is what you do every day. What kinds of jobs are people leaving and what kinds of jobs are people taking . Were seeing a lot of churn, particularly in those entrylovell, lowskill jobs, particularly in the warehouse industry competitors are coming in offering the 25 cents more per hour and having difficulty in retaining their employees. Youre seeing a lot of mobility, particularly in that space angie and christian, we appreciated both of you coming on power lunch today have a great day thank you. Youre welcome. And tech taking on hate groups what theyre doing and why its raising concerns but first, to Rick Santelli at the cme for todays bond report rick, whats going on in the pits today you know, today, actually, theres a kind of road map that tells us whats going on you know, when equities get nervous, Interest Rates get nervous, when Interest Rates and equities get nervous, the vix gets nervous kind of a perfect storm. So i put an intraday s p 500 chart on top of tenarea note yields it looks like the s p started to give it up, tenyear note yields started to go down then the Chain Reaction begins look at bunds. Around 12, 10 eastern, it begins now the euro versus dollar really isnt dancing to the same dance. Much of the break in the euro versus dollar was earlier due to minutes. Looks li s like the ecb is at point the fed was at if they normalize, its going to strengthen their currency, which was already superman currency for 2017 by talking about it, thats what happened to the euro versus dollar you see it on the chart. Power lunch will return in two minutes. And the wolf huffed and puffed. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. It is a down day in the markets, with the major averages off about 1 nasdaq off a little more than that but the other underside of the story is how broad this selloff is every one of the 11 sectors in the s p 500 sporting declines of from the minimum, about a quarter percent for real estate, to the maximum, about 1. 3 for Technology Morgan well, in the wake of the tragic events in charlottesville, Silicon Valley is stepping up its fight against white supremacy. Josh lipton is at one market in San Francisco with that story. Josh thats right, morgan. And apple ceo tim cook now weighing in, saying, i disagree with the president and others who believe that there is a moral equivalence between White Supremacists and nazis and those who oppose them, by standing up to human rights, eit kuwaiting the two runs counter to our ideals as americans. Apple is making contributions of 1 million each to the Southern Poverty Law Center and the defamation league. Paypal is also removing nearly three dozen hate groups from its platform, including Richard Spencers National Policy institute. Thats according to color of change, a nonprofit Racial Justice group. Social media giants also taking action, facebook has now removed 12 group pages that it said violated hate speech policies, including white nationalists united, google canceled their registration of nazi website, daily stormer. Now, navigating the line between free speech and censorship can be challenging nikko mele, director of Harvard Center on media, politics, and Public Policy says that Tech Companies shouldnt be making these decisions. Mele says these are Media Companies that shape public u n opinion. As such, she believes, like broadcasters, these platforms should be regulated. Tyler, back to you thank you very much, josh and what responsibilities do Internet Companies have to fight hate speech on their platforms what right do they have . How do they draw the line between hate speech and free speech who doesnt. Joining us now are ed lee, managing editor of rico and our own kroocontessa brewer, who has reported extensively on this subject. Ed, weigh in here. One has a right to freedom of speech in this country one doesnt have a right to have that speech transmitted across or carried on any commercial platform necessarily how do you draw the line what are these companiy ies doi . Thats an easy first question, tyler. Yeah. Its tough. Its tough for facebook or twitter or youtube, for that matter, to figure this out they struggle with it on a daily basis. They do take the First Amendment as their base line for this. Its a broad right, but its not absolute and for facebook, for example, they draw the line at hate speech what is hate speech . Theyre redefining it every day. And in fact, you know, the sites that they took down, in the wake of charlottesville, a lot of those sites were up before these pages were up on their service before charlottesville and i think, you know, it takes moments for like what happened over the weekend for them to readjust, for them to redefine what that is so its an ongoing thing theres no one way to look at it, as far as these Silicon Valley companies are concerned these things, contessa, the groups that may have been sort of sort of booted i say booted. I used a fancy word this. They go some where else, right there are so many options now for these groups that are d distasteful. Theyre not all white supremacies. Some are dedicated to protecting decent theyre getting painted as white supremacies. That maybe the Tipping Point for some of them we saw that for cloud fare even after go daddy kicked it off or google kicked it off. It went to a russian domain yesterday, all of a sudden, you could not get it on a russian domain they use the word for jerks. I cannot say it on television especially my grandmother is watching we wont tolerate this particular group this point in time and dont consider this as a policy how disgusting or distasteful of language. Thats how we have the First Amendment. How grotesque it maybe we are not asking anybody to defend any point of view grotesques it is generally protected in the United States. Thats the line that a lot of these companies are trying to draw themselves or trying to go ahead of that line you have to understand the big part of what drives Silicon Valley and a lot of employees there, it is sort of libertar n libertarianism, right . They like the idea to express yourself and information to be free the First Amendment is about Government Protection of free speech and not about private Company Protection of free speech the services are privately run from the government. We are protected from the government and how big these companies have become. There is an idea of the internet being a place for everybody to void it is a profound set of questions. We got to leave it sorry, ed, and tessa, thank you very much. Guys, what we are watching right now, shares off their flows of 2. 5 ahead of the Third Quarter report, earnings after the closing bell today the stock is up 35 this year. One of those stock to watch, also pointing out, guys, as you may know apply materials one of those stocks that people consider a leading indicator for city conductor business, they make the stuff that makes computer chips thank you. We are going to try to help you make a little money. R got two big names coming up foyou. Analysts seeing some big gain, stick around your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. We have not forgotten our core mission to help you make some money we are going to blast two different stocks for you right now first up, regency centers, reg is the ticker rbc Capital Market upgrades to their top hit list out perform shares are down 17 this year. Analysts calling it the best position shopping center, it like the fact you got so many Grocery Stores because they have higher sales regency is nearly 96 . The companys access on get market on good terms and boosting the target of 75 to 72. Citi group raised its targets on regency three days ago y your final stock is kennametal the analysts there believe that sales may finally be inflected and cost cuts. Kennameta coming up 25 upside, they industrial steel their sales have inflected . They make landing gear for airplanes and they do a lot. Ahead, a lot more on todays sale off plus, it seems even if you report good earnings, the markets have no love for Retail Stocks we are talking former ceos of jc penney and Neiman Marcus, straight ahead stay with us oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Welcome back, i am Brian Sullivan stocks selling off triple dingis for the second time in the month. Why is the market acting as if many retailers are going out of business maybe they are the former ceo of jc penney and Neiman Marcus is here. All showing reports of cable tv cutting is streaming down. Power lunch debate begins right now. A check on the market right now. Any declining the dow today will be its first and five sessions cisco, the first performer on the data is falling its earning reports after the bell yesterday. Energy is under pressure again today, as well nine stocks in the sector are at a one year low exxon trailing down 1 today advance autoparts, mylan and coach and tractor supply, those are the names thats leading the s p. Those are up about half a percent. Tyler, well hand it over to you. Thank you very much well begin with breaking news, a van plowing into the crowd in barcelona injuring many people there are deaths lets go to sue herrera reporter a confirmed terrorist attack that occurred about 5 00 p. M. Barcelona time when the white van jumped the curb and plowed into a group of people we have been getting reactions from various people. The president just tweeted about it saying the United States condemns the terror attack in spain and barcelona and will do whatever necessary to help be tough and strong, we love you. Thats from the president literally seconds ago. Here is what we know at this point. It is a confirmed terror attack, we have at least one person dead and 32 injured in barcelona. The death toll is expected to rise barcelona hospitals are asking for blood donations. Police activities is still ongoing. We do have, at least that one assailant is still on the loose. He fled the van after he plowed into that group of people. There are unconfirmed reports of two men holding near by in a restaurant there are local media reports of hostages msnbc did tell craig nelson, the anchor on that particular hour that she did see the gentleman going into the restaurant and pull down the break and she did believe there is hostages in there. Services to that particular part of the city has been shut down it is literally the citys center for barcelona and all public festivities and events have been cancelled for today. In japan, u. S. Secretary Rex Tillerson responded to the news of that attack, take a listen. We offer our condolences to the lost of lives and the injuries that occurred to so many innocent people yet again well continue to monitor the situation, we stand ready to assist Law Enforcement and National Security authority and spain. Terrorists around the world should know that the United States and our allies are resolved to find you and bring you to justice thats the latest we expect another briefing in a short while from the police, well bring back to you when we get that thank you sue. Lets get over to bob on the flo floor of new york exchange, bob pisani gary cohn maybe leaving the white house and then we had the report of the terror attack in spain, the market started droeing beldro dropping below that. I dont want any part of this, looks like we are going to rally. They also pile into volume and pick up and you see the lows of the day. It all happens, the market leaders are the ones that are down the most today. Semiconductors have been a big leader and biotech and all those are down for more than the rest of the market. Energy and retail, a lot of lows in those groups. Transports have been low today particularly of the airlines this just accelerates that trend. While it is overall light volume, we are seeing heavy volume in the big etfs s p 500 and the power is qqq others maybe related to tomorrows options and explorations, it does happen here once a month in some situations and that leads to a i little bit of volume pick up right now just off the lows of the day thank you, bob pisani a lot of noise is coming out of washington. The possibility that we may not get the Infrastructure Spending and the tax reform that the rally was based on how much does this matter to the market and investors and how long can earnings fuel the rally we have been seeing. With that, we are going to bring in our chief Investment Officer and the managing director. Frank, lets start with you, we had an incredible amount of news in the last week or so g geo political threats and fed minutes. Retail investors sitting at home and watching the show right now, what should they be doing with their money . Thats a great question it is one that goes back to the days where you have to look through the noise and fundamentals it sounds crazy that we have to make the statement, focusing on the fundamentals would make you take the road less traveled and we make you focus on the value area and make you take advantage of potential correction that the market is unfolding as it speaks we are around 6. 5 down from the high within the russell 2000s. 18 of the past 20 years, we had an entry year decline of at least 10 . The decline should be taken advantage of or correction should be taken advantage of and steve, we have seen this terrorist attack in barcelona certainly is weighing in the markets. They were lowering ahead of that there seems to be a lot of uncertainty and wall street of what happens for fiscal policy now and moving forward is that pricing into the market or do we continue to rally without that it is starting to get priced in the market and continually looking like the republicans are unable to govern thats a problem this latest news from yesterday continues to widen the gap between Congressional Republicans and the administration it does not seem like everyone is on the same page. All of the things that we are counting on when the market is rallying from september and november, it is not happening. I could not agree more with him. There is an incredible dichotomy of growth and value. Value stocks have been as cheap as it has been for a long time there are plenty of stocks that are expensive and single digit multiples that can be bought here and should be bought here steve, can you dot the line between politics, dc, the dysfunction and the stock markets. The question that we get all the time why would tl stock market be impacted negatively by what we are seeing in the dc when the economy and earnings are strong. Dot the line. So, yes, earnings have been good i would put it this way. Earnings can be better and the economy can be better. We live under eight years of regulatory burden. Continual additions to the federal register and so now we are trying to reverse some things and implement tax policy so i think the market is very hopeful months ago and it seems like it is falling apart i dont believe it is the most important issue. Monetary policy is by far the far most important issue thats up in the air right now fiscal policy is not headed in the direction that we thought it would be frank, pick ups on steves poi of monetary. A equivocal stance with respect to unwhining quantitative easing and raise Interest Rates where does the feds sit and how important or unimportant they have become . It is a great question, tyler. The idea from our perspective has been the bottom of the market in february of 2016 where we had a bare market and small cap which i think people forget at times is more important than the election on november 8th the under lining fundamental trends in the market are based on what brian is referring to are based on the market of domestically and nationally. We can debate whether a normal environment maybe. From our perspective, it means rates are going to be higher the ability for Smaller Companies to get access to the Capital Markets the way they did over the previous eight years now is changing. You want to focus on companies that dont need access to the Capital Market the way they did. Growth stocks should be under pressured as rates are continuing to move up. And thats why i think as i said before it is more important for us to focus on the under line fundamentals of businesses right now than a lot of noises are coming out of dc the small cap market is essentially flat and not down from where it was on december 9th after the election thats key we have been in a time correction here in the small cap base now for a period of time as this continue to roll on and hitting double digit gentlemen, thank you very much, we have breaking news right now. Thank you frank and steve. Sue herrera has some more headlines. We have a developing situation here, we got some news from the police who say they have arrested one man linked to the barcelona attack they did not say what they arrested him for, whether it was for renting the van or driving the van, we have not had clarity on that. They have made an arrest in the barcelona attack they are treating it as a terror attack as we mentioned they are clarifying what has been rumored out there about perhaps men Holding Hostages in a bar or a store near that attack, police basically and this is a rough translation, there is no one in any bar in the center of barcelona, we arrested a man and treated h i am as a terrorist. Well get more clarity shortly we do have a news briefing reportedly in about 15 minutes or 20 minutes. Well get clarity on who this man is and what part of this terrible situation he was involved in. And whether or not hes the only one that theyre looking for because there were rumors earlier that there were more than one suspect and they were all on the lose. We are looking forward to this briefing in about 15 to 20 minutes and i will bring you more headlines, brian. I dont know if you know the answer the individual who was arrested and supposedly in that bar we dont know that yet. We are assuming because they are searching for the man who fled the van after he plowed into that group of people we are assuming and not confirmed thats the man thats arrested we dont have all the clarity. We are waiting for translations. They have arrested one man and we should know what part of this situation he was involved in shortly. Hopefully, well get more clari clarity. Sue share herrera, thank you ve much. You got it. No matter what position you take, you may alienate half the nation if you dont take a stand, you may risk alienated on a more Important Group of people. Steve liesman is joining us now. Yes, whatever motivated, it could have been their moral stance take a look. Black and hispanic workers steadily rising. 40 years later, nearly 30 in a market where employers are complaining about. A quick look at the data, no negative on the impact on the employment rate. White employment rate goes up and down with the economy and it is now of a ten year low the job market focus is not easier on gains. Thank you very much here is whats coming up on power lunch. Jc penneys stock is at a 40 year low the companys ceo is joining us next, is a turn around possible . And well talk about ken fraziers decision of quitting the Manufacturer Council cameras. Introducing the newly redesigned gla suv. At a price thatll make you feel like youve gotten away with something. The 2018 gla. Lease the gla250 for 359 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Welcome back to power lunch, i am julia boorstin. Now these games come after last years regular season games suffering rating declines. Some analysts are largely interested in the election last ye year well have to see how these games are making a rebound and the changes and the format of the game have impacted as well morgan, back to you. Lets get over to don chu. Dow is off 203 points. Low of the session right now pointing out here. We are taking another leg lower the last couple of minutes and biotech stock as well and nasdaq is down 1 and you got amgen and gilead down. Back over to you thank you, don chu. Walmart and l brands are falling at the back and macys is at a years low bob pisani is joining us morgan, i dont think it is at the bottom yet. It was a good report, the main division, good number. The guidance did not impress investors of the stocks traded down walmart did not change the narratives for retailers theyre facing a revenue cliff big name like target and jc penney and macys and kohls, thats due to amazon retailers are struggling to be more innovative and jc penney they added appliances and sephora, target is doing a massive store remodelling now. At this point, so many investors abandoning retailers thats going to turn things around. Investors want to see growth and not just abbott a bottom, that to be tough. Two dozen retailers at 52 weeks low right now. Wow the biggest loser this year and many years is jc penney. Joining us now is the former jc penneys ceo now, investors are essentially valuing jc penneys business is selling goods at nothing tough question that i got to ask. Do you believe jc penney will survive . Well, last week, most of the malls and Department Stores had a difficult period of time, not only last month but last several quarters there is a tremendous amount of stress going on in the mall because of the internet and when you have the internet and people buy on the internet that you lose the impact of people coming in into malls thats more difficult. Plus, their financial situation, is a lot more difficult than some of the other, stores that you mentioned such as macys and kohls one of the good things to think about when you look at everybodys negative o on amazon prime made a big effect on how they think or how they buy you look at what happens to target, they have been on the negative side since four quarters, major increase today they have taken action they cut their prices and made prices more simple you take to walmart, it used to be on the negative side, now they have a 12 quarter of success because they have done things thats appealing to their customers. They have given great value and they are making shop ping in th store whether target or walmart, a situation that every retailer have to come to grip with. It takes a lot of money to renovate the store i think of retail, allen, and you are one of the very successful managers of jc penney we tail of real estate dw development, it is funny how they are related what do builders do . Retailers add more stores and ultimately, it gets them into trouble one way or another how over stored is this country and is that one of the fundamental problems in retail today . It has to be tyler, there is no question about it in america, we have four or five times in customers thats a major problem many of the retails, jc penney and kohls are cutting back. When you try to fill those stores, you dont have enough customers to support so you have to take the mark you got to be on sale. That is for retail dramatically over the last several years. We do a dealing with it, very sewl slowly if you are not thinking of the future, what do you need to do the other thing is you have to be careful of. One of the problems you had dealing with the Internet Business i dont know of any maybe a little bit that may make any profits. These stores have been under this making 9 or 10 profit i believe you got to focus on what you need to do to make your customers happey. If you are not willing to deal with a full deck of card, thats very difficult i would have liked to be in the Retail Business 20 years and never made a profit as we have one of our major competitors, amazon, 20 years later, they have not made too much money they already made money. Penny is under more strain than a lot of other ones because of their financial of whats happening several years ago. Allen questrom thank you. Thank you that point of profitability really stuck with us margins are razor thin everybody is trying to grow ecommerce business whether it is the shipping company or the Packaging Company or retailer. It is how you make money on ecommerce. I love to shop and as you guys know i love to go into stores and so forth i like the experience of it. We are talking earlier this week there are too many Department Stores and there is too much stuff, Bed Bath Beyond or m macys, i cannot get through the isles. I think americans are stepping, they want experiences and unique experiences. Thats why i think theyre stepping away from chain retails and chain restaurants. You are the consumer i am talking about on one of these because you guys recently moved home when housing does well, traditional retail can suffer, why . You spend your money on a down payment and furniture and pain, you are not going to macys to buy jeans. The other thing i am going to ask is this, audience, here is a question for you, i have pulled back on my amazon purchase lately because i am sick of dealing with the boxes and the styrofo styrofoam, styrofoams, are you pulling back because of box over load all right, we got to move on lets get to news alert now le less lesley picker now, i want to read a quote from the statement where they say adp is committed to engaging, however, we strongly disagree with many of the assertion made by mr. Ackman which portrays of a lack of understanding of adp business and strategies he presented nothing thats analyzed by the board and management clearly there is more fire works to come from the situation one of the most contentious, this year. Lesley, i will pick it up coming up, we are, there is no are we here we are following this big market drop right now the dow is off 187 bigabendtshe detail hi i g in, next on power lunch. Welcome back to power lunch, i am sue herrera with an update the death toll confirmed it has risen. We have a confirmation of 13 deaths, more than 50 wounded thats a considerable increase in what we thought we were going to have earlier today. The minister did warn that death toll is expected to rise it has we have 13 deaths and 50 have been wounded an arrest have been made where he awaiting details on that we expect to have a press briefing shortly it is been delayed because they have getting the updated death toll and unfortunately continuing to change the Vice President is going to make comments. Hes going to be at the panama can canal. No word on whether the president , whether he has commented via twitter. We do not know whether he will make a Public Statement or appear before the cameras about this so you are up to date, i will send it back to you guys and i will keep you updated when the News Conference begins thank you, sue herrera. Stocks are sitting right near sessions lows the dow is down about 182 points it is down about 200 a few moments ago. The nasdaq is down by more than 1 right now wall street is on its day or worst daily gain in five days. At its highest levels since august 11th. Tyler. All right, alibaba of a strong earning report, the stock nearly doubled this year rare spot in todays sell off. It is becoming a favorite stock, tyler. What is alibaba doing, right the company was best known for selling cheap fashion items to chinas young adding more luxury items, handbags and dresses and imported brands and burberry to louis vuiton the icing on the cake continue to trend for Alibaba Alibaba does not control t lodgistic behind however, year to date, alibaba is winning the race of 85 comparing to amazon gain of 30 . It does put it among the other online tech giant including facebook and google and amazon as well. We should point out this play on alibaba still on the Chinese Consumer and International Presence jack ma has been on acquisition street and acquiring start ups in indonesia and malaysia and around the world can i use it here you cannot use it here yet. You can use it to buy chinese goods. Excuse me. Do you want chinese goods i get it all the time. If you were to buy 25 mopeds. Thats the place to go ahead more on the market sell off. Including what we are seeing in technology right now is that a reason to be concerned . Well lkta about it on power lunch, back at two. Lets get some reaction on the market exchange. Kenny, it is great to see you wi every sector is in the red is this beginning of a broader cool back i think it is we have been talking about it for a while. We are certainly talking about it in my note. The market rally back last week over north korea we got right to the highs again. The market feels heavy it is no necessarily surprising at all to see the market hitting that resistance and once again back off we do test lower as we move into september and october, well have a volatile trending down market in terms of, there is been a lot of news and noise over the past week we have north korea war and everything of President Trump. Feds minute yesterday and how all the question marks what should investors be keying on given how much investors are looking at all of a sudden, it is a change of thought. You talk about the spending of the ceo platform for the president. That speaks volume, not only the president s ability to get along but the ability to perform new fiscal and economic, i think the mark is now think, you know what, maybe it is not all we thought it is going to be. Maybe we think the mark et is high, we need to do that expect money to come out of hyper form man slaught High Performance like you are seeing in tech today they can raise some money and holding it on the side and wait for week to come thank you, kenny. We have a news alert. For that, lets go to aimen reporter some News Comments just in from senator corker, somebody thats an ally for the president. The president has not yet been able to demonstrate the stability or some of the competence that he needs to be demonstrate in order to be successful we need him to be successful he went onto say the president has not demonstrated that he understands the character of this nation, it is not demonstrated that he understands what it makes this nation great and what it is today corker says he got to demonstrate a president that understand that. The president needs to wake up every morning thinking of whats best for the country and take a pause and reflect to where he is right now. Thats tough stuff from Tennessee Republican bob corker. Corker has been an ally of the president. Hes not someone thats one of the regular critics of this president. Although hes been critical of him at points throughout the year thank you very much very much mike allen wrote a piece today. Allen highlighting how many groups of people the president alienated which isolate himself. Lets bring in mike the right part and steve bannon. And dont forget democrats. The democrats are loving this. Because they feel it is benefiting them obviously. The democrats themselves seem to be splitting at a great diseray. We often talk about stocks it is so beaten up that it is a good value how many times people heard that on cnbc. The president must overn hes our president and barring over events or longer. How do we go from here like our stock, how does the president recover . Is he under valued because hes so quote, beaten up. Cnbc is testing his lows and the problem for this president is the exact Market Forces that he would need to rise that he would need to get his footing or cover all people that he ill naaliena. If luook at that list of going after his republican leaders, agenda is so much in his hand. Now, his staff members, people are watching what hes saying or tweeting we are getting increasing texts and emails and calls from people inside, wondering if this is something that they want to be apart of. This morning, people were so surprised that the president would want to triple down on this topic even if you agree with what he says, so many people we talked to think this is not the time and hes not picking up the right comment. Mike, if you are hearing from insiders as you are. They obviously are reaching out because they want this message to be put out there because they are sort of reaching out for help if you will we need a functioning executive branch where do we go from here perfectly put and as i talk to companies yesterday, after that mass exodus, so many of the Companies Say we still want to engage with the white house. We recognize a lot of what they are trying to do especially tax reform and regulatory agenda are in our interest. The president is making it so hard, i talked to companies yesterday that says especially, some of their minority employees and large groups of their employers are saying we are an Inclusive Company and we want to see that thats why they felt pressure to take these actions they want to make this work. Republican on the hill wants to make this work and bob corker wants to make it work. They keep on saying we are giving him chances we keep on thinking if we get a new chief of staff, the system will be better what would steve bannon thinking hes thinking that hes channelling the president s voters and connected with the president. Hes looking at the advice that steve bannon given to the president , it reflected from his tweets steve bannon believing that the press conference got so much blow back at the white house that was not a low point, connecting with trumps country. Did you think he was off the record in that interview, who knows . It sure looks like it and the twist, does it make more or les that he gets pushed out. It makes it harder congratulations mike allen, appreciate it. Have a great day, thank you it is time for our daily segment of trading nation. In technology of the shining beacon that we had are you at s p are concerned of technology. Yes, we have been talking about the real shift in leadership Going Forward for the second half of the year and even in the 2018 and just one thing we really want to stress is, earnings, Technology Earnings are about 20 of the first half of the year. Thats the reason they were leaders. Second half of the year, were looking at 10 half the rate of growth and it gets worse once you get into the 2018 we are going from these high Growth Stocks into really below average stocks and not even keeping up with the growth overall market at least expectations. There are some concerns and also trading, not at the peaks but they are within the range. The peak has been about a little bit about over 9 to 10 higher. We can see that these stocks make a 9 difference here and stilwell be within the past six months range bill, are you a buyer on this weakness no, i think it is time to step out of the way especially if your time frame is sometimes over the next year when applicable, the nasdaq, more than anything else, 100 futures traded 59. 95 on a technical basis of the r rally back hitting a big trend line and we are falling back now. It could put the qqq at about 138 to 138. 5 depending how long it takes to get down there it is about 3 away. I would consider buying until it gets there. If your time break is long and young and you dont think your portfolio have enough tech on it use some of this for a better name thank you both. A reminder, trading nation, more of it, tyler, where is that website . You can go to tradingnation cnbc. Com. How was that decision made . Well talk to the board member, next and now, the latest from trading nation and a word from our sponsor. When you own a stock thats going higher, help lock in profit by raising your stockholder. So, consider raising your exit point to under a significant support level, allowing you to ride the trend as long as possible whoooo. Finding the best hotel price is now a safe bet. Because tripadvisor searches. Over 200 booking sites so you save up to 30 on the. Hotelock it in. Tripadvisor. Upeace of mind. S we had a power outage for five days total. We lost a lot of food. We actually filed a claim with usaa to replace that spoiled food. And we really appreciated that. Were the webber family and we are usaa members for life. Merck ceo ken frazier was the first to low of the president s council, his resignation followed by a series of others, eventually one of the top panels disbanded and joining us is a former merck member and also ceo of reuters. Welcome. Good to have you with us two sort of questions here was the board consulted at all before mr. Frazier left the Strategic Policy forum, and if so, what did they advise him to do and number two, was the board consulted before he went on, and did anyone at that time if the board was consulted have any reservation about him taking part in this panel well, thanks for having me on. First, i should say im obviously appearing in a personal capacity, not in any way as a representative of merck, and, you know, you speak to ken regularly so he would give you the direct background you know, my personal belief is that serving on one of these councils is not a decision that under normal governance an entire board needs to take we have a lead director at merck, an excellent director ken i believe consulted him before he went on, certainly made the board aware of his reasons for doing that and consulted less again with his personal decision that in light of the events of last weekend in charlottesville he just had to step off that board, and i think it was a moral decision, a brave decision and the correct decision. And it had nothing to do, as the president suggested on monday on tuesday, that it had to do with the idea that merck makes some of its products overseas and oh, by the way mercks largest pharmaceutical customer is the u. S. Government, correct . I think pretty much every large Pharma Company that sells in the u. S. Has cms, the medicaid medicare system as its largest customer h. Merck actually employs the number is Something Like 28,000 or 27,000 out of 60 odd in the u. S. , and i just thought it was incredibly petty of the president to go after ken, and ken is too decent to actually have corrected what is as usual trumps playing with untruths. Morgan brennan, i want to shift to another sector. Financials weve seen the stocks selling off in the last couple of people and you sat on the board of Morgan Stanley as well given what weve seen developing this week, do you think we get financial more financial deregulation moving forward . Well, you know, i think its a god general questi a good general question. The question is can trump get anything done . Can kelly, you know, keep him at all in line or is the market looking through and saying, well, you know, pence, if he were to succeed trump under any or a variety of different scenarios, what would he be able to get done and the reason the market has been reasonably calm is that it sort of sees through to the other side and earnings have been good. Final question. Youve spent a lot of your career in europe and overseas, and i gather you may be there on holiday now. What is your impression of the view of European Business people about making investments in the United States, about uncertainty politically in this country . Has it chilled in any Way Investment thinking in europe so far as you can tell. Well, you know, people here want to understandp how america which has been looked up, too, for good reason for so long, could possibly have such a shambolic government evidence. I dont see the evidence im on the board of a French Company where i often need to explain whats going hon in my country, but i see no evidence of folks deciding ooh, this is just too dodgy for us to invest. I see. Interesting. They are doing that on a fundamental return base ease. Thank you very much, m mr. Glocer appreciate your time. My pleasure, thanks. And check, please is next stay tuned she cant become a guitar legend just by playing air guitar. The babys room wont build itself. And her paw wont heal on its own. Were all working forward to something. Synchrony financial can help your customers make it happen sooner. So she can plug into her dreams. And theyll have a new addition for their new addition. Whatever youre working forward to, even if its chasing squirrels, Synchrony Financial can help you get there. Even if its chasing squirrels, no, please, please, oh shrieks in terror heavy breathing and snorting no, no. The running of the bulldogs . Surprising. Whats not surprising . How much money aleia saved by switching to geico. Fifteen minutes could save you fifteen percent or more. Welcome back were seeing a dow down 183 points my check, please point which is very quickly this. We havent seen d. C. Drama affect the stock market that much, but i do believe some of the gary cohn rumblings could be different. I think a gary cohn departure, i think that that would be a marketmoving event. Im going to take the other side of the trade and what happens to the markets, do they rally if steve bannon is indeed fired as its starting to be speculated in the media. But no one has said out of the white house that cohn is leaving. In fact, they knocked that rumor down. They have. But he is frustrated. I know that from a source. He is frustrated. All righty. Thanks for joining us, Morgan Brennan. Come back any time, all right . We can say closing bell starts right now hi, everybody. Welcome to closing bell. Im kelly evans at the new york stock exchange. And im Bill Griffeth stocks round pressure today. The dow actually in negative territory for the week now its been hovering above and below that line all week earnings from cisco and walmart dragged the average lower, and, of course, the uncertainty coming out of washington doesnt help as well. Yeah. Even p g is negative all 30 dow components are. Investors looking at the fate of