Out in deadwood we heard about the avocado pelting story. Really injured. In a world where amazon is buying whole foods what happens to costco, and what about those costco retisry chickens. You guys talking about it. Is that enough to keep the big box customers coming well tell you what the wall street is saying with costco down 2 . Two words on costco, fresh fish friday. Very enthusiast. Thats what i live for. Activist investor going after the parent of saks saying hudson bay should stop trying to get the deal won with Neiman Marcus and macys theres a better way to inlock the value. And well discuss stragt in a first cnbc interview with Jonathan Litt. We begin with word out of the white house. Kayla touch covering the tech sim mitt and ooemon javers with more on russia threatening to target the u. S. Over warplanes in syria. Ceos of the Largest Tech Companies in the world, alphabet, microsoft, ibm, adobe are meeting today at the white house to modernize the governments infrastructure or to at least begin a conversation about how to do that its being spearheaded by the office of American Innovation which itself is led by Jared Kushners, the president is only we heard from him in his First Official capacity in that role listen before i came to washington, many warned me that the bureaucracy would resist any change that we tried to implement. So far i have found exactly the opposite it is a popular issue though to get the ceos to the table, many of whose companies have been critical of the administrations policies. The reason being the government represents a very Large Customer for a lot of these companies, especially if they are thinking about investing in new contracts and new Technology None of these ceos wants to be left out of those conversations because that could mean lost revenue. We talked about this earlier with vm ceo pat gelsinge. The government is the a huge user of vm products already and some things we can do in cyber security, improving authentication and applications and accelerating a move to the cloud. Reporter one issue that will be championed here at the white house specifically by apple ceo tim cook and others is that of Immigration Reform that is scene of one of the sort of extraneous topics that the ceos are going to be discussing today. Of course, it is an issue thats near and dear to these companies that employ many people who are on these socalled h1b visas when sean spicer was asked off camera this afternoon, whether the president was considering changing what had been a hardline approach to hb1 visa. The president is approaching the issue to listen. Kelly and bill. So what am i missing here they bring together all these ceos of Big Technology companies to ask them how to better automate the federal government. It would seem to me the answer from each of them would be buy my product, wouldnt it . Well, certainly, and thats been one issue that has raised talk of potential conflicts before, bill, notably in a december meeting after the president had just been elected. The ceo of a Major Government Contractor was in that room and Everyone Wants to be talking on their own book and saying you should be buying my products as well so that is certainly going to be something that will be talked about following this meeting, especially if there are any followon c. Im told but the administration by one official that you shouldnt expect to see any deals inked or announced this week, that they are just soliciting input, but thats going to be one of the key questions. Kayla, thank you. Youre Kayla Tausche over at the white house. Now on russias threat to target u. S. Coalition aircrafts in syria. How much of an escalation is this reporter well, certainly an escalation of rhetoric it was a u. S. F18 super or net aircraft that conduct the the shootdown of the syrian airplane over the weekend. In response the russians suggested that they might treat american aircraft and Coalition Aircraft in the air west of the euphrates as targets they might lock them on and treat them as targets in the combat area there. Sean spicer, the White House Press secretary, was asked about that today heres what he said the u. S. Response was he said obviously were going to do what we can to protect our interests, and, you know, this is something that were going to continue to work with. Keep the lines of communication open he was also asked if the United States would change any of its flight patterns in the region. He referred that question to the department of justice, so clearly an effort here at the white house to sort of downplay the tensions and deescalate this moment. A very dangerous situation in syria and spicer says he doesnt think that any escalation of all of that does anybody any good. Kelly . Eamon, to what degree have they thought through the response here . The u. S. Has shot down another aircraft for the first time in almost 20 years. Now if a u. S. Aircraft becomes targeted or Something Like that, what kind of response will there be i mean, they are not going to let this go unanswered and what happens if we start trading fire now over in syria. Sean spicer was asked exactly that question in the briefing which was off camera, and were not allowed to use the audio of it and i can tell what you he said though. He said the Syrian Regime and others in the region said they will retain the right of selfdefense and the white house says they will retain the right of selfdefense, what they mean is they remain the right to fire back if somebody shoots at us or locks on to our aircraft presumably that moans they would have the ability to take out the surfacetoair missile sites in order to protect the aircraft flying in that area. Thats what youre looking at and that could mean a conflict with the russians which would obviously be very dangerous indeed, kelly. Eamon, thanks very much eamon jafrs there at the white house. Lets get to our Closing Bell Exchange the dow and s p are in record territory. Weve got still about 100 points to go for the nasdaq to get to that again joe duran from United Capital is with us, Kenny Polcari at post 9 and Rick Santelli checks in from chicago with us today. Kenny, i said this earlier today. The stock market will never go down again discuss. Uhoh. It certainly feels like that, right . Though if you were here last week if you were on vacation and tech came under pressure it would be a very different kind of tone and sense earlier in the week, but today i think this is all a direct result of whats happening in d. C. , all the Tech Companies, all looking at big contracts. Technology now is leading the way higher today the total overall volume today is not explosive so i think thats much more of a bounceback not only in the tech sector and i also think over the weekend there were no surprises out of france, no political upheaval and i think its almost more of a relief with the majority, but then rates going up, that should give you the sense that the markets should come under a little bit of pressure but were not seeing that. And the other thing that happened we had a rate hoik. We heard about that in deadwood, too. Rick santelli, to what extent is that in the fed speech that kenny mentioned . A lot more to come this week the financials are up okay, participating, goldman even leading the dow here is this having a knockon impact on the markets today . Well, consider this last once fed day when we raised rates we traded a yield and closed at 212. Here we are up to 118, only three basis points away from the low close yield and two out of three of the markets and equities are at alltime highs and the third is up almost 16 on the year. Listen, the fed could get as hawkish as they want with regard to verbalization i think that after all these years where theres been a semi contentious relationship between the markets and fed policy that as they do the right thing, and i do air quotes on that, i personally think removing accommodation is a good thing, the markets arent really buying into it wholeheartedly, so ultimately theres going to be an intersection in front of both the markets and the fed. Is the fed going to do something the market doesnt have priceded in now, i dont know the answer to that, but i can tell you just by looking at the market that these yields arent high considering what equities are doing today and what they have done and a big chunk of the reason beyond the reach of our federal reserve. We dont know what we dont know hey, joe duran, i mean, yes, i missed the tech wreck last week, but now today here we are, Technology Leading the market higher was that just another buying opportunity, or was there a chink in the armor of the fab five, the f. A. N. G. Stocks . What do you think . I think what youre seeing its a very concentrated trade and a lot of market gains being treated by the biggest Mega Cap Companies and the Technology Firms are leading them and what youre seeing them with amazons move to whole foods, the Tech Companies are assessing the Strategic Direction they are going, to so i would say its going to continue, but its going to be more volatile. As valuation is higher, youll get more likely to see a stronger reaction and the very sharp pullback last week, you should expect more of that as valuations continue to be very concentrated with a mega caps and predominantly with the technology funds. Joe, i see here you said think about going to an equalweighted etf because that might mitigate the size, you know, that some of the big tech names have on the index. Do you think thats a good smart move for people in the longer term i do, you know. The thing is as long as you do that with the s p 500 i wouldnt suggest you do it with anything else and heres the thing youve got to realize a lot of growth is lapping outside of the United States we have very soft data as rick has pointed out. There doesnt appear to be doing as well and the Interest Rates reflect that as well as the feds noodling with things, but i would concentrate on Large Global Companies because they are doing really well, and that includes technology. Equal weighting will reduce the noise of the really large mega caps, and even it it up, but you dont want to go too small because really the growth is outside of the u. S. Right now. All right, guys gooding to at this point thank you all. See you later we have about 45 minutes in the session to go. The dow up 116 points and basically popped open with higher kind of sat there throughout the day. S p up 16 by the way, the dow is 281,500. Halfway to 22,000. The nasdaq is up 73 to 6225 and the russell up 8. Shares of saks fifth avenue parent hudson bay popping today. Well talk to the activist investor behind that move in a first on cnbc interview coming up in had a minute. And later is amazon killing the minivan . Well discuss how the Worlds Largest online retailer may be contributing to the decline of the Auto Industry. Hmm. Youre watching cnbc, first in business worldwide. We created the ripple the doughnut in a doughnut in a doughnut. Right away, it was a success. I mean, it really took off. What people dont know is that it all started with points from my chase ink card. I bought the ingredients, utensils, even custom donut cutters. Wow all with 80,000 points. What will you create with your points . 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Were the rivera family, and we will be with usaa for life. Welcome back strong day here on wall street, the dow opening higher its now up 120 points more than half a percent and its the lagard today. The s p is up nearly. 75 of 1 the russell lagging for the last several weeks it feels like catching up there with twothirds of 1 gain and the nasdaq up 2 right now. Still a way to go before we get back to an a alltime high on that one so were getting there. Lets check a couple of movers Clovis Oncology sturridging and a latestage trial of its already approved Ovarian Cancer drug shows four times as many patients could benefit from that treatment. Clovis plans to submit an application to the fda over the next four months to expand the level. The stock, as you can see, up 45 on that news today. Valiant pharmaceuticals is getting a boost in news that Billionaire Hedge Fund manager john paulson has joined the companys board. They owned a 5. 7 stake in valiant. The stock up 5. 6 . Landon building is taking a 3 stake in hudson bay Parent Company and they are suggesting strategic alternatives, specifically a real estate deal to Boston Red Sox mize value. Hudsons bay is reviewing the letter and will respond in due course the stock which trades on the Toronto Stock Exchange has been up about 15 today and joining us in a first on cnbc interview is the man in the center of all of this. Founder and cio of land and buildings, Jonathan Litt good to see you. Thanks for joining us today. Good to sigh, bill. Thanks for having me on. Your premise is that the real estate that these stores are sitting on is worth what, five times what the stock might reflect right now. Is that the idea right, so the company is valued its real estate at almost four times where the stock is trading. Whats remarkable and whats different about this company than any other Department Store company is they own the location at fifth avenue across from rock center probably one of the most valuable locations in the country and that location alone is estimated to be worth 16 a share, trading at 10 a shar which is an extraordinary opportunity to own a phenomenal location jonathan, why is this so mispriced. You know, why are investors not accurately reflecting this in the share price . I imagine youre not the only one who knows this. Well, i think whats happened its treated like every other Department Store company which has traded off substantially as people are wright off the Department Store business. What they dont realize is about hudson bay because its listed in canada is that they own their real estate and the real estate has been valued by third parties at almost four times where were trading and one location is worth 16 a share. I just dont think they have done the work. They short the whole group together or sell the whole group together and they miss this this this aspect of the real estate value. But what about these they have two joint ventures where they have packaged real estate in the past. I mean, arent they doing something about it. So in order to establish with the value of the real estate is, they did a joint venture with david simon at Simon Property group and a canadian reit and we now have a, mooin a those. We know what saks is worth on saks fifth avenue but investors come in and short the real estate they short the Department Store company what we really need to see the company do is aggressively redevelop the real estate or take it private. Yeah. And when you think whats the highest and best use of that location across from rock center, it may not be a Department Store company its been here forever and its iconic and there may be a higher and better use for that location than skz fifth avenue Department Store. Thats what makes this so interesting, jonathan. If you look at hudsons bay which has a long an storied history in canada as a retailer, youre effectively going to them and say stop being a retailer an start just being a landlord and anyone can lease the real estate its a tough sell to make to a Retail Company is there a way for hudsons bay to keep its retail presence and do Something Like spinning out the real estate and saying to people in that business, hey, if you want it, you can manage it and still somehow capturing value for their shareholders. I think its a great question, and i think what i like about hudson bay is that its stacked with real estate professionals. Youve got the bakers who are chairman and ceo you have bill mack and lee nybart, all real estate pros whats happening to the stock is happening in a short period time they wont stand around forever rate waiting for it to be realized they will come in and try to figure out how to unlock it. And whether that means shutting the stores down and redevel