Inc. Portfolio power lunch starts right now and happy friday your money carving out decent gains in the major indexes the dow trying to end the week higher just like the nasdaq is doing. The nasdaq is now more than 5 for the year melissa highlighted general bills and blue buffalo and if you are investor, go home and give your dog a pet tonight because that stock is soaring. It is up almost 17 . Other interesting stocks today, go daddy hitting a new alltime high on pace for its best day since august of 2016 Red Robin Gourmet Burgers rallying and Planet Fitness strong on the earnings and out look now to michelle. You have to work out after you eat a red robin. Thank you. The dow is up more than 200 points and lets get to the Market Action here on the floor. Bob pisani joins me. We are watching to see what happens for the rest of the day. Because were just off the highs. Look at the s p 500. Every day this week there has been i g a gap up and then we move down and close near the end of the day we are just off the highs. This is happening every day this week right now the market starts moving down. So a little bit of suspense. In terms of sectors, it looks like the beginning offebruary. The cyclical names are holding up, so you have the semiconductor and Consumer Staples are lagging. You heard brian talking about General Mills buying blue buffalo but the Consumer Companies have been terrible because of the cache that has worn off and hersheys was at a low. Heinz at a low and the stocks are having a tough time. As far as the markets, were just off the highs the key thing is it is good, three to one and the volume has dropped off. Nothing like the last two weeks. Much lighter and the volatility has been declining. Take a look at the vix were at thelowest levels sinc the big drop and it was monday, february 5th, vix hit 50 weve been going down every day this week and now at 17. You did not mention in this hit and maybe it is the first time in a long time, tenyear yield and whether Interest Rates are pushing the market around. And it is not that much generally it is quiet or down, we tend to have the markets move up yesterday, however, everyone was scratching their heads we were kaw we were kwee essent and the market moved down and everybody kept messaging what is going on and there wasnt news out there. So a point move and not a lot of news and that may signal the volatility wont go away that was a lot of movement for not much information. Thank you bob pisani thank you. The market issin ert, quiet he essent and you are still optimistic that stocks are going to go higher but like mom said, following the crowd is the best strategy and with oppenheimir and mark lab ella from qs investors both of you make your living off of equities. However you are also paid to worry. So john, are rates the biggest worry and if not, what is for you . I think near term Interest Rates are most certainly a worry. Only in that you have a process of normalization continuing, a new fed chair, and the market always wants to judge get used to the personality of the fed chair before it feels comfortable. And right now there is that level of of what exactly how is Jerome Powell going to work out. Theyre going to test his metal from time to time. That said, fundamentals are good, both from a perspective of the economy and corporate fundamentals so that is support for equities here. Do you believe that the Federal Reserve is going to be able to manage this economy well enough that corporation can just go about their business, john, keep making more money and keep equity premiums at a premium. I think they will likely do a remarkably good job at it people have been waiting for the fed to make a mistake since the market began to recover in 2009 and even before that in 08 when tarp and talf and the beginning of qe began and so far this cycle the fed is remarkable in getting being sensitive to the Economic Growth, lack of Economic Growth, deflationary trends and inflationary trends and it may have something to do with the usage of technology and the quick dissemination of information. Which the fed is benefiting from. Mike, most people out there say they expect an increase in volatility and you fall in that camp as well there is the issue that john highlighted of the fed having to thread the needle perfectly when it comes to rate hikes and the rising inflation pressure weve seen why should investors at this point remain fully invested in this market which you say is in the later stages of the bull market cycle. People have to realize that most fed tightening end in a recession. The perfect landing rarely occurs and over the last couple of years weve had extreme Forward Guidance from the fed. Telling us, no matter what the economy does, were going to keep rates low well a couple of years ago the fed moved to data dependent and what that means in plain english is we went from Forward Guidance to no guidance if Inflation Expectations beat what the fed is predicting, we could see four rate hikes. If things cool off it could be three or two so more options means more for investors and they have to learn to live with this. And live with anybody, you have to require some lifestyle changes. That is a unique analysis, why should we learn to live of it but i dont know what that extrapolation is with your analogy. But if you have been fortunate enough to be participating in this bull market and seen the returns weve seen last year and citing all of those Different Things in 2018, why do we learn to live with it and risk that at this point so just pulling yourself out of the market even for a small number of days could be very detrimental to longterm returns. Just missing the ten best days of the last 20 years would cut your equity returns in half. So selling when things get volatile is a bad idea why we think people need to learn to live with it is you cant buy a broad based index which is faang heavy too much exposure. Amazon alone is 40 of the market returns this year you need to diversify. Start looking to defensive sectors. Sectors that do well when volatility rises not losing money becomes ever more important and that is why you have to look for bargains. Start with the value. A side note and amazon is the number one holding of every hedge fund out there is amazon a risk to the market it is definitely been a donkey that helped pull the cart, but what if the donkey dies. The risk is that like in any stock, if there is any type of surprise to amazon, even a slight miss. It could have an outsized impact to the overall market. This is the lebron james of the market if he is on the bench, the cavaliers will have a hard time. Amazon is the top stock in almost every major etf and hedge fund and indexes, what it may never roll over if it does. The idea here would be more like you could get some interim volatility caused by something coming out of amazon or the hedging pulling out. But the idea here is you look for the cyclical and the secular trends on a stock like this and what they are doing as strategist, we cant help but think it is less of a concern than some might think. But always volatility, plenty of possibility for it when markets and the economies are in transition and when you have overconcentration of leadership from time to time, the market is always going to look for a catalyst to justify profit taking and rotation and rebalancing. We have to leave it there have a great weekend, john and mike. You too. Thank you. And President Trump speaking about a number of hot topics, including sanctions against north korea and guns in america and the stock Market Correction and ahead of the News Conference with the australian Prime Minister in less than an hour. And eamon javers is live. At the Political Action conference outside of the beltway here in maryland today, the president also touching on the stock market, expressing his opinion of what has been going on in this little correction that weve seen over the past month. Here is what he said the fundamentals are so strong the stock market with the ups and downs since election day is up 37 from 37 now it did a little bit of a correction in fact, i started to say, i was in it for 13 or 14 months from election and i said is this sucker ever going down a little bit. This is a little embarrassing. But this is mostly a red meat political speech by the president of the United States hes hoping here to really energize conservatives ahead of the 2018 Midterm Election urging them to get out and vote and here is what he said about democrats in the speech. They want to give your money away they want to give your money away they want to end your tax cuts they want to do things that you wouldnt even believe. Including taking your Second Amendment rights away. They will do that. They will do that. So we have to get out there and we have to fight in 18 like never before just the way you fought with us. Reporter now as you mentioned, well hear from the president at the top of the hour with australian Prime MinisterMalcolm Turnbull who is in town visiting were also watching some developments in the russia scandal. That is sort of the back drop to today politically. Rick gates, the former Trump Campaign aide is expected to plead guilty at a d. C. Courtroom at 2 00 p. M. As well in charges brought by the special counsel so well see what new developments are on that front as well. Thank you very much. Meantime, lets see if the Oil Companies continue to drill for more crude the weekly counts are out and jackie has them at the commodity desk. Crude prices are not phased that rig counts increased. It is trading near session highs because u. S. Oil drillers only added one rig but still it is five straight weeks in a row there have been additions. It makes sense since crude price is holding the hirer rage. The total counts is 799 according to baker hughes. That is back to you. They just keep on drilling. Rio tinto part of the australian delegation at todays News Conference at the white house and trade expected to be a big topic. Commodities front and center in the debate about inflation and also tariffs also tariffs well get mr. Stevens . This is your new name. This is your new house. And a perfectly inconspicuous suv. Live you know whats not awesome . Gigspeed internet. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Well continue our coverage of the guns in america and check out how the two major stocks are. The stocks rise is because people will go out and buy more guns but is not the case were seeing american out door brands and they are smith and wesson and sturm ruger both down. And another company with less attention, Vista Outdoor they own a lot of things brands like bell bicycle helmets and bushnell but they own federal and peer and Powder Company cci. Another angle of the gun control story, companies ending the business relationship with the National Rifle association met life and chub cut ties and met life saying we value our customers but decided to end our discount with nra. And the First National bank of omaha and well have more headlines if and when they do. Thank you Malcolm Turnbull is at the white house with a large contingent of australian ceos one of sebastian, the ceo of rio tinto and he met with gary cohn, director of the National EconomicCouncil Welcome to power lunch. So let me set the scene here. Let me say a few words around rio tinto to make sure they understand weve been here for 120 years and one of the largest mining companies. The us is very important i would say the usa and canada together, because we see it as an integrated system today we supply onethird of all of the aluminum consumed in the usa. We provide 13 of copper and last but not least, we have around 20 billion u. S. Dollars of shareholder in the u. S. So the conversation i cant disclose what was discussed in the private meeting but i could tell you, the way we look at it. So clearly groewth is looking good in the u. S. Clearly the copper tax cuts is very helpful but for what is important is and we love rio tinto will if you have more requirements you need more copper and more aluminum, were here and we are here and we have more and can i ask you, sir, did the discussion of the tax cuts come up. We havent had you on since the u. S. Instituted a new Corporate Tax rate we have spent a lot of time discussing what the impact is on u. S. Companies but you are a company you are in london and australia. Does the u. S. Corporate tax cut change the way youre going to allocate capital around the world . It could. Absolutely and remember as you said we are British Company but as i said today, weve been in this country for 120 years. And you need to understand let me give you an example one of the recent mines that we are building as we speak, and in a nonu. S. Country so 5 million of investment and five years to run and seven to build and it will be up and running for 40 years. So in this context if you have a country with an attractive tax rate that could make a difference and we have real options in terms of further investment in copper and aluminum in canada as well so that can make a massive difference because we are a capital intensive business and when we make an investment, it is 25 to 40 years. So we are looking at it very carefully. So the department of commerce here in the United States, one week ago decided that announced they believe that imports after aluminum are a threat to National Security and some of the remedies include duties that could be very, very high, or quotas. How would that impact your company . Are you worried about the u. S. Doing that and did you say anything about that to gary cohn. So as i said, we are processing out of canada and the bulk is sent to the u. S. , we are providing onethird of the aluminum consumption in the usa. I wont make any comment about but im confident people will take that the chain between canada and the u. S. Is highly integrated and that at the end of the day we want the u. S. Customer to be competitive and their best interest is to secure low cost aluminum and i think this oil integration between canada and the u. S. Is the way forward. Terrific. Thanks for joining us. We appreciate it. Thank you. China has been a massive spending spree here in the United States. Snapping up marquee rauft but now the Insurance Company that owns the waldorf astoria seized by the Chinese Government could have a impact here well go inside of the portfolio straight ahead ein the 2018 lexus es,y system plus, standard. And the es hybrid. Take advantage of special president s day offers now through the 28th, on the 2018 es 350. Experience amazing at your lexus dealer. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye we help all types of businesses with money, tools and knowhow to get business done. American express open. To get business done. Tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. Welcome back, the Chinese Government announced they are seizing control of on bong insurance and the company ceo had been prosecuted. They are the private company that owns the waldorf aft waldorf astoria. They said that they had violated laws and regulations which may seriously endanger the solvency of the company the ceo was arrested in june as troubles mounted and np indication of how the chinese Justice System works, his movement through the court system was and we didnt know he had been tried until this announcement melissa. Chinese corporations have spent a record amount of money in the United States over of the past few years and snapping up business and real estate we have more on what is being bought and how much they are spending. This was an epic shopping spree by these three companies they have spent more than 50 billion in the u. S. And now as for t the fortunes turn, ao the big property is waldorf astoria. The most Expensive Hotel ever sold in the u. S. It is closed for renovations they wont comment on the future but Industry Experts tell me they wouldnt be surprised if it comes back on the market probably