President trump is talking drug prices with the Ranking Member of the Oversight Committee right now. Well bring you the latest out of that meeting coming up. See what they talked about. A billionaire Real Estate Developer who says he turned down President Trumps proposal to build a wall on the mexican border. He will join us to talk about his relationship with the commander in chief and whether mr. Trumps negotiating skills will come in handy as he tries to get tough bills passed in congress. First the ying to elon musks yang. J. B. Straubel on the companys energy push in hawaii. And diane greene, the cofounder of vm ware will join us and talk about how google is taking on amazon web services. Back on track. Starting with appaloosas david tepper. Making headlines after sharing his bullish market views on squawk box. Here is what he said. Were more long u. S. Stocks. The bigger bet is on listen, its all the same sort of bet. If were short u. S. Bonds, were betting on a stronger economy here. Right. Okay. Thats the bet. So were betting on strength one way or another here, on the strength around the world. I am long european equities. I could lose my behind, but thats life. Are you short bonds right now, david . You bet your heinie. I would like to see that on the transcript somewhere. What did they do with that. Right to our well wethe clo bell exchange. What do you think, steve . I think david tepper did mr. Tepper did a great job breaking down the markets as he usually does. He gave us, you know, mr. Kernen asked for a couple quotes. I think he gave more than a couple quotes this morning. When you look at the marketplace, i think you have to gauge it in a few different ways. The market rallied off the progrowth policies and everyone is hanging their hat, so to speak, on getting those done. If they dont get them done, you are going to see that infrastructure plan probably kicked through, youll see more stimulus on the other side of the equation. I dont think i dont want to say that theres no risk to being long equities, and you will see pullbacks from time to time, but if youre long this market, you are reaping the benefits of that rotation coming out of bonds that we have seen for the last eight years. There was no benefit or i should say there was a large safety bet. Even with the market moving higher. I do believe that rotation is still much longer in the tooth coming down the pike. Rob morgan, david tepper said this morning he is long european securities. I think youre underweight europe. Anything you want to sell him right now . Bill, from the standpoint of rates going up and the dollar rising, u. S. Investors putting money to work overseas, there is a headwind there. I would suggest that u. S. Investors underweight the international space, including europe. He acknowledged that he could lose money, to paraphrase, depending on which way the French Election goes. Is that something youre watching carefully . Could you get in if the market were to slide on that election . Absolutely. If we saw a little dip and there was an entry point, that would be the case. Rick, he picked a good day to be talking about how he is short bonds. Whats happened with the tenyears . The twoyear after the huge adp report this morning. Is the fed behind the curve . Well, i have thought the fed has been behind the curve for quite a while. No disagreement on my behalf towards mr. Teppers comments. As a matter of fact, a lot of the things he said i would even dig a little deeper in. He is not only making one bet on rates going down, he is getting a twofer. Tomorrow is Mario Draghis big day. Theyre tightening the tightrope wire hell be walking. Hell curtail a bit of the qe and extend the time hes going to do it. Market. Look at frances rates, portugal. Some of the rates outside of the boon. Even the boon moving higher. Negative rates will probably end and not end well. There is no doubt that no matter what european rates do, to some extent the u. S. Rates follow. The charts bear that out. That will help his cause out. With regard to the dollar, everybody is talking about the dollar, as well they should. I agree with rob. Its your easy banner to see whats going on in the world. Problem is, its still bounced back down from unchanged again today. It has been hitting the 102. 20 area. Im not saying its going to go through. Maybe were at the end of a short cycle or this may be the high yield. I think thats why todays auction went so well. It was up to 258. The two bond kings out there see yields going higher. Bill gross says if we get to 260 the bull market is over for bonds, were going into a bear market at that point. Jeff gundlach says he sees a steady increase by the fed this year and he believes it will be a headwind for u. S. Equities. What do you think . It could be. Everyone is trying to put their line in the sand as to what level. Everyone comes up with the 3 mark. If you look at the historic average, probably the run rate is much higher than 3 . Its probably basically double that. If you look at when rates rise, theyre usually in housing recoveries and when growth is doing better. So i would say that everyone lets use a specific example. Housing stocks, which i am long, kb homes and pulte homes. Everyone said at the end of these, the death knell for housing is when rates rise. We havent seen that yet. A lot of these fears, to maybe paraphrase david tepper, i think they are overblown and people should not worry about getting their heinies ripped off. This backup in yields helped financials today. You like goldman here. Who else . I definitely financials are my favorite sector, kelly, primarily because of the steepening yield curve and obviously potential deregulation. Goldman i like dividend payers. We have been talking about rates rising. Certainly people, as rates go up, some will jump out of stocks and into bonds. The dividend payers will be resilient to that. Goldman and the financial space is probably my favorite in that category. All right. Thank you, everybody. Good to see you, rob, nice to see you in new york for once in a long time. Thanks for being with us. Its been another whirlwind day in washington involving some of President Trumps top agendas. Eamon javers wraps up the day. The meeting on drug prices and yvonne muy on the details of the Infrastructure Spending. One of the things the president has done today is met with people who disagree with him. One of them the meeting with Elijah Cummings. He is the top democrat on the house Oversight Committee, a committee often used to investigate the administration and the executive branch. He is potentially one of Donald Trumps biggest adversaries here in town. They appear to agree on the need to lower Prescription Drug prices. Thats the stated topic of todays meeting. It was a meeting that took a while to come together. The president at one point accused cummings of backing out of the meeting. Cummings said the president was making stuff up about him. They finally got it on the calendar. We saw mrs. Jobs. She said shell talk about both today. Pyle jobs, who is worth more than 10 billion, was a big donor to Hillary Clinton during the campaign. Well wait to see whether we get a readout on that meeting or followup from her camp to figure out what if anything the two agreed to at the white house. The meeting between cummings and the president on drug prices is it isnt simply as a show of an area of bipartisan support especially after the rollout of the aca repeal . Or do we expect something more substantive to come out of this. You could see something more substantive to come out of it. The white house needs to show they can reach out to democrats and hold those meetings. Also, this is a president who very much says he wants to find out a way to lower drug prices overall, perhaps by having the government negotiate drug prices for all of the drugs it buys through various government programs. That would be one way of lowering prices thats against the law right now. Cummings could be a key supporter of that on capitol hill. They could push that through in sort of a bipartisan way. We havent seen a lot of Bipartisan Legislation in washington in recent years. That might be one that could attract some democratic votes. Eamon, thanks. President trump also meeting with Business Leaders to discuss his Infrastructure Spending plans as were constantly reminded of the woeful state of infrastructure in this country. Yvon elon muy has more. We saw the transportation secretary leave the meeting. The executives must have left out of a different door. We did confirm the full list of attendees who came to the lunch today. Among them, elon musk, steven roth and rich la frac. Big Real Estate Developers. Also Nature Conservancy managing director lynn scarlett, a representative from the environmental industry as well. During his press briefing sean spicer did give a few details about what was discussed behind closed doors. The government has wasted too much of the taxpayers money on inefficient and misguided projects. So rolling back regulations, they are one of the key themes that the president has hammered over and over. The big open question is how do you pay for all of this . There is plenty of private money on the sidelines. The president has highlighted the role of Public Private partnerships. There are 69 infrastructure funds out there right now. Two of the biggest are run by Global Infrastructure partners. They have a fund worth almost 16 billion and another worth 8 billion. Plenty of money there on the sidelines. But one other possibility is that the administration could pay for its infrastructure package by cutting spending in other places. The Washington Post is reporting that the president might pay for his famous border wall by cutting back funding for the coast guard, for the tsa and fema. So are we really just rearranging the deck chairs, perhaps, in that case . Guys, people agree on the need for Infrastructure Spending, agree on the need for the improvement of americas roads and bridges, but nobody can agree on how to pay for it. Back to you. The president , during his speech to congress, talked about a trillion dollar infrastructure package, but thats a combination of public and private money. We just dont know how much of that private money is going to be a part of that whole package, right . And i wonder, if all those private companies that you were itemizing right there, whats the quid pro quo for those guys other than the fact that they get these government contracts to do these projects . Well, the Campaign Plan that trump had proposed included 167 billion worth of Government Spending and tax credits amounting to about 82 of any equity investment. There could be some significant tax incentives for companies to invest in these Public Private partnerships. They also talked about repatriated earnings and the tax on those as well. Lots of potential ways to do these deals. Elon muy outside the white house. 47 minutes left in the trading session. The dow is down 30 points. S p positive. Nasdaq is pretty positive right now. And the russell down about a point. House Speaker Paul Ryan praising the gops bill to replace obamacare even as it faces backlash from fellow republicans. Later, well hear from a billionaire Real Estate Developer who is friends with President Trump but he turned down an offer to build the border wall. Hell tell us why and what its likely to do with business with the ceo president. Later on the closing bell, stay tuned. I work with people everywhere on sea, on land, and in the air. Inspecting towers way up high avoiding turbulence in the sky. Personalizing treatments with dna and recommending who should play. A dress that thinks, which crops to grow, tax prep to help keep payments low. You can find me on an oil rig, i answer questions small and big. Hello, my name is watson. I answer questions small and big. Duexperience our mostand perefined models ever. T, including the ls, lx and es. Experience amazing. Welcome back. A mixed day in the markets with the dow down 38 points. The s p negative. The russell as well. The nasdaq hanging on to a 13point gain today. 5847. Shares of caterpillar one of the underperformers on the dow. New details regarding the tax fraud investigation. A new report commissioned by the government and reviewed by the New York Times accuses the company of using improper accounting methods to boost his stock price. The shares down nearly 2. 5 today. Meantime, back in washington. President trump backing the House Republican plan to replace obamacare. The bill still faces resistance from other gop members. Kayla has the latest from capitol hill today. Just around the corner from me two committees are debating the new health care bill. Procedural votes, lengthy debates and even a full reading of the text of the bill leave little in the way of actually marking it up. At ways and means, they spent two full hours debating a nowcontroversial tax break for insurance executives. One expert said it would forfeit 400 million from the government, a point which outraged a texas congressman. 600 billion is being drained out of the treasury and being drained out of a treasury with this first step of 400 million for a totally unjustified windfall for the Health Insurance industry. Democrats checked that 600 billion figure quite often this morning. Thats the estimate on what all of the tax breaks in the bill would cost. Across the street at energy and commerce, similar fireworks. Chairman the clerk will report the mr. Chairman. With democrats similarly stalling and some dissent emerging from republicans too. Congressman joe barton saying he wanted to propose ending Medicaid Expansion earlier. That wont be popular in the senate, chairman walton said theyd go into next week. If they went into next week they would be on the collision course with when the cbo score is supposed to come out. That could be interesting. The congressional calendar getting crowded. Goldman sachs says it could get into may and june. If it goes beyond that they may just let it go. The sausage making has begun. Yesterday the Health Care Sector was the worst performing sector on wall street. Today it is the best performing sector. Either bargain hunting is going on or someone has ideas on how the Health Care Plan will shape up right now. Bill, its unclear from any of the amendments that were put forth today because so much of it were basically stalling strategies. I mentioned the full reading of the text of the bill. 100plus amendments from democrats, not even getting mentioned. This is going to take some time. Td really hasnt moved the needle for this process. Perhaps there is a belief in the market that some of the Health Stocks are oversold or its a day without negative headlines. Hard to discount that in this market. Yesterday hospitals were weaker but ininsurers holding up okay. Pharmaceuticals have a different through with the drug meeting between Elijah Cummings and the president. Its not uniform, even though its very, very early in the process. That too. 40 minutes to go. Red arrows for everybody but the nasdaq which is higher by 13 points. President trump has vowed to repeal the dodd frank financial reform law. But another top bank ceo just came out against a repeal of dodd frank. We have details on that coming up. Could google be on the hunt for acquisitions and expand its Cloud Business . Well hear from the companys cloud chief later on the closing bell. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Welcome back. You can see we are about twothirds decliners to advancers on the dow. Caterpillar the weakest. You see whats happened with oil prices. Big decline. Big inventory build there. Microsoft top gainer today. For the dow. You know, the president has been very vocal about wanting to repeal the dodd frank banking legislation. But this morning barclays ceo jeff staley told our wilfred frost he would not be in favor of such a repeal. Our view is it would be a good thing for dodd frank to stay in place, not to repeal it. Its a very complicated piece of legislation which requires a lot of interpretation by the regulators. I think what you will see is more of a volume control. This is a volume control on a complicated piece of legislation. You never get it right the first time. We look forward to that. Counter intuitive. Yes and no. I mean, you know, what we hear from some of these Morgan Stanleys ceo jim gorman said the same thing. Theyre not in favor of repealing it overall. I think they realize the industry got itself into trouble ahead of the financial crisis because there were too few regulations at that time that allowed them to take too much risk. A lot of these guys have been pulling back on risk. And in fact, jes staleys message is that theyre just now getting ready to take on even more risk, but it