Look it up i know there are people out there that remember that one i think its kind of hilarious that you and i havent heard this song at all its billions and billions of it zblifl better that you dont know this song either. Okay. Well, there may be see what im going to do here. There may be a slow seduction brewing in the media space, discovery, and scripps reportedly are in merger talks again. Could this ignite a wave of deals in that sector meanwhile, in the competition between morken, stanley, and Goldman Sachs. Gets a point today, Strong Revenue numbers out this morning. Something he struggled with yesterday. Well have the details bill akman using twitter for the first time, giving a vote of confidence for chipotle. Plus what he ordered and what he was listening to. And what he was listening to. Youll see stick around for that at least lets start with breaking news for this hour as President Trump is about to host a made in america round table at the white house after hes had lunch with all the gop senators Kaylee Townsend bringing us up to date. Bill, that round table will be taking place at the white house with ceos of Small Businesses here in the u. S. That make goods ranging from coasters to gutters, pillows, and more. That production happens here its day three of a week focussed on American Manufacturing and production at the white house as it seeks to stay on message. And its expected to highlight in particular certification of these products to safeguard against counterfeit and pirated products coming into the u. S. And arent actually made here. The president s trade advisor and noted china hawk telling reporters the administration is pursuing, quote, aggressive antidumping and countervailing actions and will quote, crackdown on unfair trade practices. And actions specifically related to steel is expected to be imminent and has been telegraphed by the administration for several months at this point, but the whole made in america and trade conversation is creating quite a difficult backdrop and perhaps a tense one for the comprehensive economic dialogue that the u. S. Is holding with china just down the street from the white house, and if you need any sign of the tensions ratcheting up in that situation, just note that the press conference is for both the chinese and the u. S. Delegation that were expected to be taking place momentarily during this hour for the chinese, bill and kelly, have been cancelled were awaiting word on exactly why and how those talks have been going throughout the day. A lot happening between those events the Health Care Story is mega, mega, mega, now the president after a scathing wall street journal oped, after charles cdotten hiemer saying this was an embarrassing failure, now and the president needed to take more leadership on this. Okay nobodys going to leave were we are going to figure this out, is it too late . Well something that republicans on the hill has been lamenting throughout this process was the president s not being willing to go out and stump for this bill on the house side and now on the senate side, instead he has taken an antagonistic approach up to this point figuring certain lawmakering who are not supporting this on either side but now he is saying, we have to sell this thing. Were going to have a vote next week and we saw leader mcconnell coming out to the stakeout and saying that there will be a vote next week and that replacement is not off the table he seemed to be leaving the door open for a multitude of options, and he said that Vice President mike pence and hhs secretary tom price and the administrator for medicare and Medicaid Services will be on the hill tonight and theyre going to continue to try to suede these no votes and get some of those noes over to a yes. So its still remaining to be seen what can happen in a number of days. And saying that they should be held responsible. Its going to take a hail mary to get something done in this short time frame though kayla, thank you i think youre going to come back later and talk more about this well see you then the House Budget Committee 12 marking up the budget resolution and could have a big impact on tax reform which we might be turning to now next if were ready. To the fall lets get to the details. Heres the conundrum facing republicans. Until all of those details surrounding tax reform are already hashed out so theyre basically stuck in a chicken and egg fight right now. And i talked to three members of the House Budget Committee, all republicans who were on the fence today. Representative david pratt of virginia said hes still worried about the border adjustment tax. And the trillion dollars in obamacare taxes that now wont be repealed. And hes worried about reports that the administration is now looking at a 20 Corporate Tax rate instead of a 15 rate and these pieces, we havent had an open playbook yet, right, show us the playbook so we know where were going and what we can count on because that is the golden goose. At the same time, democrats like representative Hakeem Jefferies of new york are slamming the house budget saying its cruel and harsh because it includes 200 billion in cuts to entitlement programs the House Republican budget is reckless, regressive, and reprehensible. All to promote a deep tax cut for the wealthy and for the well off. The House Budget Committee is still marking up its resolution that debate is expected to go until 11 30 tonight. Well keep watching and let you know thousand goes, guys thanks, elon. See you later. Meanwhile, earnings, Morgan Stanley shares higher after easily beating expectations this morning. A stark contrast from rivals Goldman Sachs before yesterday, willford has details on that for us hey bill, yes indeed, the key differentiator across all of the banks was trading. Morgan stanley traded down just 1 year on year compared to Goldman Sachs down 17 yesterday. Morgan stanley separated itself from pierce thanks to his commodity performance, only down 3 compared to Goldman Sachs down 40 this contrasting performance is a concern for goldman shareholders, for example, note the different tones they had on commodities. They were a story of challenges on all fronts, and that they have the worst quarter on record meanwhile, Morgan Stanley said they feel good aboutresults enlight of the environment and that movements were not that dramatic elsewhere, Morgan Stanley had small beats on every line. Probably the most encouraging was Wealth Management which had record revenues at the top end of their target range at 25 overall, ceo james gold masn was pleased with what he described as respectful numbers and singled out three tail winds that could improve things further. Capital, tax reform, and Interest Rates here are his comments on taxes u. S. Corporate taxes are too high if the administration in congress can achieve a realignment of tax rates with other major developed economies, and they would be a clear positive for our business and Corporate America in general shares up more than 3 today in reaction, guys. Willford, based on the comments for ceo about how they had tail winds from higher rates and higher markets, im just wondering how much of this Wealth Management boom is based on higher stock market values and what happens one day if were not in the same kind of environment. I think you hit the nail on the head, kaylee, first of all to say that lots of the analysts in the media wanted to focus on the trading performance. The company understandably wanted to focus as well on Wealth Management. Its a big part of the business and as we said, it was a strong performer. Part of that is, because of high stock market levels as weve already heard, also part of it is the deposit rates they have in there and the rising rate environment. Theyre in a strong position, and they have changed the shape of the business in the last couple of years. And it seems to be paying off. I would say the flexibility we saw within the fixed income trading was a plus and also just a point of what taxes could do to them if we see it they pay a 32 tax rate this quarter. Reminder to all of the banks would benefit if we did see a Corporate Tax cut. The nasdaq, the russell, the dow is the laggard they have about eight points to go there lets talk about this, rob morgan from sandy spring trust is with us today steve from Stewart Frank sl a post nine and Rick Santelli shows up at the cme in chicago so, steve, i mean, what, you know, were always looking for what motivates this market were watching washington, where nothings getting done earnings have been mixed to better, is thats what pushing the market higher here i think the major thing that were looking at is that its a less of a regulatory hurdle environment than we have seen in the last two president ial cycles, last two administrations. So when you have less head winds, you have bigger tail winds by proxy, thats why ceos, thats why corporations are a lot more positive, thats whats driving this market. And we dont see any to your point, you havent seen any tax policy reform. You havent seen health care you havent seen an infrastructure bill. You havent seen anything, but due to the fact in a youre going to see less regulatory environment, thats whats really kept this market moving higher in my humble opinion. Rob, any names today you pick up on the weakness Northern Trust off on its earnings cfx reversed to the downside united also selling off a bit. Any of those opportunities for you . Well kelly, yeah, i think those are certainly possibilities and you know looking at some names that will report after the bell today. Certainly qualcomm, tmobile, American Express, whisper numbers are they are all going to report better than expected earnings i think there are definitely some opportunities to be picked up here in the next day or two rick, incremental changes to the markets that youre following. What are you guys looking at right here well, were continuing to pay particularly close attention, not only to Foreign Exchange and particularly how the euros been strong against many of the major currencies, but also, thats where the volatility has been hiding as well in terms of Interest Rates, i dont to want dismiss the notion that weve come down as a matter of fact, about a month ago, we were talking about resistance around 241, came a couple of basis points shy of hitting that, but the market turned to the spot just shy of where it closed last year. Thats not a problem the way its bin dripping. You know, just today, take for example, we have 8. 3 pop in Housing Starts we had a 7. 4 pop in permits rates didnt even budge to the upside, they drifted last week when we had soft inflation and responded logically, the treasury market is willing to be pushed in the current form lower, but seemed to ignore the higher it was exactly the reverse i still say the stencils set. Equities, Interest Rates are dripping a bit, just Pay Attention to the dollar. Both kind of drifting together, the dollars just got a couple of extra horsepower on it, but overall, dont see a lot of changes in the data coming out for the rest of the week is ultra light. So, pretty much, next week in the ecb is going to be key because it brings us back to the main story, the euro strength. And steve, just looking back at some of the deal news this morning, do you think that could be another source maybe for the goldmans or somebody that we see kind of a mini deal boom pick up here at all . Yeah, big deals are always positive for the overall market. Everyone tries to gamble and buy, whats the next one whos the next one to get bought goldman, i know that you dont mean that, you know, as a specific, but getting back to where you led in with wilf, goldman has a real prok with the commodity trading. Thats the real hurdle for them to jump over, as far as banks are concerned, banks have not been a real laggard. If you go back a year, they popped on the presidency outcome, theyre up 35 a year ago performance. So when everyones searching for a laggard, the only laggard to look for is the Energy Complex we got the inventory out today, bullish for crude, extremely bullish for the xle. Lets just take a look at that if that starts to explode higher, this market legs up with or without tax reform or with or without any infrastructure as well all right guys, thank you. Appreciate your insights into todays market action. See you later. Thanks, bill. You bet 46 minutes left in the trading session here again, if youre just joining us, with the s p, the nasdaq, and russell are in record territory. The dow is higher, but got a few more points to go here Discovery Communications and Scripps Networks reportedly discussing a possible merger, again, up next, well talk about whether that deal makes any sense and if more media could be on the horizon as a result plus, former molina joins us to explain how the senates failure to pass an obamacare replacement bill and the possibility, maybe, of a clean repeal vote could impact the Insurance Industry and as always, we to want hear from you. Reach out to the show here on twitter, facebook, send us an email, tell us what your favorite slow seduction song is. Whatever youre watching cnbc, first in business worldwide where to get in. Where to get out. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome back chipotle receiving a downgrade today from market perform from outperform this after yesterdays after an illness in sterling, virginia. Concerns of food safety could create weakness in same store sales, but the news is not stopping bill ackman from eating there. Remember, ackman owns a big stake in chipotle, he tweeted quote, eating our own cooking and making my own mix. Now maybe like us, you wonder what the heck is that . We found out. Boy. Did we it composes music based on your order and ackmans order wait a minute i wanted to be in that pitch meeting. What do you say we come up with something that creates a sound based on what your chipotle order is apparently its a chipotle its chipotle exclusive product. Anyway weird, its double chicken burrito bowl for ackman with lettuce, and light rice. Why do we need to know that . So we could find out do we have his beat. We have our own, right we put our orders in to see what happened. Heres mine, and i have not heard this i dont know what the whole point of this thing is carnitas both beans red and black medium sals is a and gawk is important. And yours do we have the song i dont think thats much of a song thats impressive here we go. Thats kellys order. Ive got carnitas burrito with white rice, extra sour cream thats for like it. Now were talking. I should have picked a better one. Thats what im talking about. I think the extra sour cream did it im sure thats what that is weirdest thing. Saver waves check it out shares of Scripp Network soaring today that its in talks with Discovery Communications. Two companies are no stranger to merger talks they banded a potential deal back in 2014 yeah, joining us now is former discovery president john ford along with barton crockett. Great to have you both with us apparently the Scripps Family was less interested a few years back do you think they might have come around . Given that these talks have resumed, they must have overcome that hurdle and the family has less resistance now than they did before so it seems as if talks are happening, if in fact they are, that theyve overcome that hurdle and that should be one of the Major Concerns that has been addressed. There are other things to address because you have the integration of two very large companies. This merger, as far as a unified approach has three things going for it the three as, audiences are all adults 25, 54 for these networks and the portfolio. The advertisers all are prone to buying a premium brand, discovery, hgtv, and food all sell themselves as premium advertising brands premium cpms then you have the affiliates as well they are all relatively affiliatefriendly in their approach and not as highprice as viacom. Barton, this is a strategic merger possibly, but you could also arguably thats a defensive merger these companies are getting ready, trying to get some leverage of some kind Cable Systems in a world where skinny bundles are becoming the norm, right . Right the tv industry is getting tougher. And i think were looking at some kind of hunger games coming to tv. You have more consumers going to skinny bundles decreasing the pie potentially and you have big parts of the pie, tv stations, espn, asking for big increases in rates, particularly at the tv stations and espn going into a renewal cycle starting in the fourth quarter. So theres going to be a lot of pressure on the independent Cable Network companies to hold on to their rate, hold on to their place in the skinny bundle these guys come together, you know, i think make some sense in that, you know, if theyre able to do it we dont know, if they do, you want to be bigger, you want to have more bulk to kind of fight this hunger games battle which, you know, i think is one of the ra