Representative kevin brady last night. We have two Top Economists to weigh in. Federal prosecutors are reportedly investigating 21st century fox over whether it should have disclosed information about Sexual Harassment settlements. Those details as well. Lets get right to the latest. Eamon javers and kayla tau xi are at the white house. Reporter a bit of an airing of grievances from the president on a number of subjects. We did hear some Important Information about the sequencing of his legislative agenda later on through the year in terms of taxes and obamacare. Heres what he had to say. The tax would be easier in my opinion but for statutory reasons and budgetary reasons we have to submit the health care sooner. Early march, mid march and after that were going to come up and were doing very well. Reporter so the president there saying that health care goes first in march or mid march and then tax reform. You know, politically that could be a challenge for the president because as we know, Health Care Reform has been a bit of a quagmire for previous president s taking up all of the white houses attention or success in terms of whether its a failure. We also heard from the president a bit of a sour tone here a little bit more sour than you tend to hear president s in the first month of their presidency about the state of the country. Heres what he had to say on that part. I inherited a mess, its a mess. At home and abroad, a mess. Jobs are pouring out of the country. See whats going on with all of the companies leaving our country going to mexico and other places. Low pay low wages. Mass instability over seas no matter where you look. Reporter and also we heard the president complain a number of times at length about the media, the questions that he gets, the coverage that he gets. The president clearly at this point a bit of a media critic in chief here weighing in on all the Different Networks and their coverage of him. Kelly, a fascinating president ial performance today. Eamon, a quick question on something he only really mentioned in passing but it was related to Obamacare Repeal and then taxes. He seemed to say that because of budget reasons and otherwise he has to do Health Care First and then taxes. How significant is that . Reporter well, i think thats an important point. As i said, i mean, health care has been a quagmire for previous presidencies. Doing that first could distract a lot of the white houses attention from tax reform, at least until the end of the year. Congress is capable of walking and chewing gum at the same time. They can do multiple things, but the question is whether or not the debate publicly about health care as intense as its been will distract in any way from any effort to do the tax reform piece. You know, eamon, even though it was kind of a throw away lead in to higs point, the president said in some ways tax would be easier. The markets didnt respond. Maybe thats slightly comforting to him saying he doesnt think its going to be that tough to get taxes through. He said its going to be a tremendous, spectacular tax plan. He hasnt said what hes going to do but he said its going to cover both individuals and businesses. Well expect to see some rollout of it later on in the year. He did say that he did think that that would be easier than health care which indicates to me any way that he realizes hes in for a significant political fight as they figure out what republicans on the hill want to do on obamacare and if that matches with what the president and the team here at the white house want to do with obamacare. All right. Eamon, thanks very much. Meantime, President Trump also announcing his new pick for labor secretary following andy puzners name. Kayla tausche has the details. Reporter President Trump naming alex acosta for the role of the secretary of Labor Department. That comes after andy puzner, the fast food executives withdrew about both his business and his personal background. But the cv of acosta from puzner couldnt be more different. Hes most recently the dean of the law school at Florida International university. He has spent much of his career as a Public Service or government official. He is not an outsider by any means. He clerked for Justice Samuel alito. He was a member of the National Labor relations board, which is a key posting for someone who will be running a Labor Department. He was the u. S. Attorney for the Southern District of florida and he also ran the Civil Rights Division of the doj under george w. Bush. I think you could say hes not a billionaire, meaning that his Financial Disclosures and the reviewing of those Financial Disclosures will likely be a little bit he is easier for congress than it was for puzner. Perhaps the detail that makes him the politically safest candidate for President Trump to have nominated to this post is the fact that in all of those government roles that i just mentioned there were three that required Senate Confirmation and he passed through Senate Confirmation pretty much with flying colors and that was something that didnt escape the president when he announced that nomination at the press conference today. It was a detail that he haled very closely. Finally, there could be some bipartisan support for the record of the cases that acosta brought while he was running the Civil Rights Division of the doj. Among them suing Cracker Barrel for Racial Discrimination claiming they treated africanamerican customers with inferior service than to other customers and he also sued an Oklahoma School district for making an 11yearold girl remove a hijab claiming religious discrimination. The president lamented the speed of the cabinet approval, the progress that has not been made so far. So far 13 members of a 35 member cabinet have been approved. There is a little bit of opposition. The ranking democrat on the Senate Committee that will be reviewing this did put out a statement saying that she looks forward to carefully reviewing mr. Acostas qualifications though nothing as of yet that says that there is opposition, that she will be voting against him, but we will see. A lot of these votes have fallen on party lines. Kayla, thank you. Kayla tausche from washington. President trump met with congressional leaders and he brought up the stock market. And that was the other thing about the stock market sets new records every day, chris. I never see that. Well, you can see it right here. Weve only been talking about it day after day after day. For weeks. And as we back off those records slightly, lets get to our Closing Bell Exchange on this thursday. We have david katz from Matrix Asset Advisors and steve grasso and Rick Santelli out at the cme. Steve, let me start with you. This is really the mildest perhaps of pull backs you can have after a streak like weve had to the up side, seven straight days. All these records. Really the market sat still during the Trump Press Conference so maybe it wasnt drawing a lot of detail from that, but where do you think were at in terms of the need for any other give back after this rally . You know, mike, tremendous amount of funds have been sitting on their hands trying to wait for that pull back. You and i have discussed it. You dont really get that pull back. Its bought really quickly. Its a testament to me of how under weight firms were in the financials, in energy, in materials, in industrials. You look on a daily basis you see the leaders on a daily basis have been the financials. They take a couple of days off here and there. The market as a whole grinds higher and i think thats what it will continue to do. Steve, to follow up quickly, at some point theyre going o own enough, right . Sure. What would be the clues youd be looking for in the Market Action to say, okay, that rotation might be played out . Well, when you see from the november election when you see the xlf rip up about 20 and then President Trump talks about tax reform and they rip up another 5 , i think you have to see a leveling off. When you hear those good news headlines, when they move flat to lower, thats when you know they have their fill of financials. David, where would you be putting money to work . Well, markets hit highs but there are lots of stocks not at highs. Company like abne which is in health care, cvs, drugstore. Great companies. Selling well below their highs. Occidental petroleum and Johnson Controls which is an automotive industrial company, really industrial company, and it sells at a great price. Really hasnt done anything. All four of those we think could be up 20 in the next 12 to 18 months and you dont need a roaring market for them to continue to do well. Rick, you know, i think we asked you to take the temperature of the bond market a little too often because it hasnt been changing that much in tone, but you did actually have yields come down ever so slightly today. You had that very great philly fed number this morning. Do you think too many people are betting on higher yields and thats why its been tough for them to really get a skate velocity or whats going on . Plenty of people bet on higher yields but theres a give or take when it comes to the fixed market. Theres the investor class globally that can come in in the longer maturities. Then theres the moves that seem to happen before, during, after fed meetings that move the curve, in this case a bit steeper, but i think its quite comfortable for the tens right now in the midpoint of the year, 244, 245, which is also exactly where it closed last year. Ill tell you what, today is one of those days. You could say what you want about technicals, but it gives you some good moves. Were going to throw up a quick chart of the dow jones, twoday chart. What i want everybody to notice is that right after the opening we made the high thats still on the board, 20,639. Then we dipped a bit and came back to the exact same level like twin peaks and then, boom, it fell off. There was selling, profit taking, my guess, because it didnt take that level out. But whats interesting here, mike, is that 2s, 5s, 10s, 30s, the dollar index right at that same time, right around 10 35 eastern also moved lower. Were still really tight packed with regard to how equities lead, even treasuries at this point, with regard to some of their moves on extreme pricing. David, any trip wires here that would turn you from being a buyer of the dips into maybe more of a seller . Many of trumps policies are pro business. The lower taxes, less regulation, still mu lus all very good. We are concerned about his language towards mexico and china and the possibility of a trade war. So that would be the thing to really watch out for. The market has been overlooking it at the moment assuming its not going to happen if that were to start to play out wed have concerns. All right. David katz, steve grasso, Rick Santelli, thank you all. Thank you. Meanwhile snap meeting with bankers today ahead of fridays ipo road show. We have been following the company and its bankers around the town. She made it to post 9. Snap road show has begun. Today Ceo Evan Spiegel and other executives met with the sales team at three major banks. There they talked about the ipo pitch and how the underwriters should sell the shares. And there are a lot of shares to sell. 200 billion to be exact. The company is raising about 72 of those proceeds with the rest going to the cofounders and venture backers. Snap chat is seeking a lofty valuation when compared to other social media companies. Snap chat almost 50 times whereas facebook is 15 times. Theyre offering nonvoting shares as well. The first time a company has attempted to do that, but sources say snap chat still thinks investors will buy in. Theyre pitching themselves as revolutionizing the way people communicate and highlighting their user engagement. Theyll stay on the east coast this week and then head to london monday before coming back to the states next week. Well see if their pitch sticks with investors though over the course of their road show. Well keep in touch with sources until then. Guys . We saw earlier how Morgan Stanley had decked out its times Square Office with snaps colors. Theyre rolling out the red carpet. Did you get a sense from the meetings, from the Way Investors walked away as to whether theyre impressed enough by what they heard to maybe put some of their concerns about the growth to rest . Investors have already taken a look at the prospectus. Tomorrows the meeting with the investors. The hard core east Coast Investors begin. Well get a better sense at that point. Todays meetings with the banks, im hearing that a lot of those were presentations teaching the bankers how to sell this ipo because this is a difficult one. This is the first big unicorn to go public in a few years, and so theres a lot riding on this ipo. Those bankers have a hard job ahead of them. Sure do. Although one of the few big ones in a while so well see how it goes. Leslie, thanks very much. Thanks, guys. A little bit more than 45 minutes before the bell. The dow modestly down below the flat line. S p and nasdaq. Russell is leading to the down side pulling back a little bit more than half a percent. And kevin brady insisting here on closing bell yesterday that the border tax will be in a tax reform bill. Border adjustability which is equal taxation of all products in the u. S. Regardless of where they come from or who produces them, that level Playing Field at the end of the day is going to be in tax reform. Some Retail Stocks are getting hit as a result. Up next, well debate whether the Retail Industry is a threat from the border adjustment. Is the fed too elitest . A former member of the dallas fed lays out her case later on the closing bell. Is is my retirement. Retiri retir t and i never ged oft. Is is my retirement. E tirelyepedretire . Yr ner te with e adad im in vestsnds sted invesr ines vest wh ad ere inors caveste and instn ve. Ot in ves. Up attrade. Com d get to sihud. As ctithinking lik whatseam spirit worth . 14. cs atsrtto lk to ur mom . Whats thealue o wan the s . Atsrtthe valuof piis tea, lk to ur mom . Not st wealth,healue o things tma. An staey dow down broadly. We spoke with kevin brady chair of the house ways and Means Committee. The border adjustment, which is equal taxation of all products in the u. S. Regardless of where they come from or who produces them, that level Playing Field at the end of the day is going to be in tax reform. And heres what House Speaker paul ryan said this morning about those worried a border tax what it might do to the dollar. With respect to currency adjustments, its it is obvious and mathematical that a currency adjustment would occur when we harmonize our tax laws with the rest of the world. For people who are concerned about it, i believe that there are things we can do and ways and Means Committee is looking into this to ameliorate those concerns. Joining us now to talk more about this, Douglas Holtz egan, former white house chief economist and michael faroli. Doug, let me start with you. He said paul ryan said its mathematical and obvious that this currency adjustment would occur. It strikes me that the strongest advocates for the border tax adjustment are the folks in congress, you know, potentially writing the bills and some academic economists. Private sector folks seem to have some resistance to this idea. Hows it going to shake itself out through this process . So i think its important to remember the context. No one can defend the current tax code so reform is desperately needed. The house reform taken as a whole would make the United States the place to invest, innovate and grow compared to every other country in the world by locking in a single tax and the border tax or the border adjustment in that tax system serves two crucial purposes. Number one, it removes any tax base incentive to move production off shore and number two, it gets ridden materially of the capacity of the big multinationals to gain the system and avoid taxes. Those are desirable features and really explains why theyre so locked in on having that as part of this system. Mike, the collar is lower by almost 3 4 of a point today. What do you think would happen if border adjustment goes into place. I tend to be more sympathetic to the argument that the dollar would appreciate, would appreciate substantially if border adjustment goes into play. As i talk to noneconomists in my job i sense a lot of skepticism around this argument. I think thats one of the reasons that the retailers are concerned. Even though i actually think its a good idea, i think im in the minority. I think some of the concerns that you talked about with the retailers and others may have more sway in congress than the arguments of the economists who back up this idea. Doug, you started out is yeah, go ahead. I think the thing to point out is i understand not everyone views this as a mathematical certainty as the speaker put it, but 160 countries around the globe border adjust their taxes and