Transcripts For CNBC Power Lunch 20160505

Smell the fire from here. We are about 15 miles south of Fort Mcmurray. The winds have changed making these masks necessary. We also have developments from the oilsands just north of Fort Mcmurray, rear learning that reuters that Conoco Phillips is the latest company to shut some of its operations in the region and learning from Canadian Press that oilsands executives are worried that the wildfire could create gaps in the northern alberta power grid. That would lead to more closures of operations in the region. This is a developing story. Officials say that the situation and conditions remain extreme and winds are helping to spread the blaze. Still we are about 15 miles south of fort muck murray where the fire began. Well continue to monitor. Woo currently on highway 63 i think were having trouble with her mike. Thank you. That sparking a big reaction in the oil markets. We are actually off the lows of the session. What needs to be ton to contain that massive blaze . Joining us on the phone is chief tom porter, who heads the California Department of Fire Protection protection in the southern region. Let me start with a random question, am i wrong . Or are they fires just getting bigger every year . Thats a very good observation. Let me first say, our hards here in california and fire service are with those in alberta and Fort Mcmurray. Were really concerned for everything thats going on up there. As you stated, fires have been growing. We have seen in the last ten years, firing in california, texas, oregon, washington, idaho, and now alberta, really, really massive proportion. Why is that . Why is that, do you think . Were seeing the effects of a change in climate. Were seeing fire seasons grows in length, starting earlier and ending later. These are condition that is our generation and probably several generations prior to us have never seen. I guess the most important thing, if you are unfortunate enough to be caught in the line of fire quite literally is to heed the calls by the fire officials to evacuate and evacuate early. The last thing you want to do, right, is hang out . Until the last minute . Absolutely. When Evacuation Orders come, thats a serious order. What we really want people to do, and unfortunately were a bit further along the line in alberta, but what we like people to do is be ready and be set, and then go. Ready means have a plan, have all of your important papers, your medications, dog food, cats, other animals, have a plan, and then set means when you see smoke in the air get prepared to leave. When that Evacuation Order comes, we need you to go right away, not wait around. Were seeing that the evacuation times or the time that fire is burning into evacuation areas is shortening. So thats one of the things were trying to do is really get out ahead of these fires and make sure people are out of their way, so firefighters can come in and do what they can and fight the fire without impeding their progress by running into traffic jams and firefighters could be impeded as people try to flee. Lets talk about the strategy as a firefighter that one employs in a situation like this, are you actually trying to put the fire out or trying to redirect it into areas where they might be less fuel for the fire to consume . Yes. In these massive fires, there is little that we can do at what we cause the head of the fire, where the growth is extreme we tend ton people out thor areas and focus our amendments on areas of the fire that is less intense. We do that because of the wind shifts. As weve seen in alberta, theres been wind shifts, and when we want to make an attack where a fire is of a size a proportion that we can make an effective attack on it. It was truly amazing. I happened to be in seattle last summer when the fires were burning way east of seattle, by 100 or 150 miles, you could see and smell the smoke in the air just because of the way the winds were blowing. On the next day as the winds changed, it moves in a completely different direction. Its a very unpredictable thing, isnt it, thom . Very much. We canlooking at the fuels and anticipate where fires were gro absent of wind or slope kind of effects, but when the wind kind of shifts on us, that really pushes fire in all different directions, and weather is something that we watch very close closely throughout an eye vent. Thank you, chief. Thom porter in southern california, and like you, we wish the people out there the very best and safest. The ongoing strike in verizon, its been nearly a month, the slow down of about 2 in that time. Today protesters demonstrated outside of the companys annual meeting in albuquerque new mexico, our own jane wells is there with more. Jane . Reporter yeah, michelle, veld different from outside briefly inside all the directors were reelected, the compensation packages approved. All the shareholders proposals were voted down, including one to separate the chairman and ceo roles, another to require shareholders approval for socalled golden parachute severance packages, as verizon management left the east coast to descend on albuquerque, are things sully breaking bad . [ chanting ] the unions representing the 30,000 members claimed to be holding 400 protests around the country today, including the large one here. The main Sticking Point isnt pay or health care, but verizon wants the flexibility to move customer calls to call centers outside regional center. The union says that means moving jobs overseas. There appears to be no movement there. Were actually concerned about the future of the company. We they its good for the public and good for the company to invest in good jobs, to business fios, the highspeed broadband product, instead of spending 8 billion on yaw hughes which is a failed brand. I did speak off camera with the ceo who said they have a nondisclosure agreement and are in the second round, but cant say anything about it, because they just dont have enough data, quote. And more than 1300 have crossed the picket line to go back to work. Jane wells, thanks very much the company said ted make a half million cars than originally forecast, then on the Conference Call, he raised the bar even more, forecasting a million vehicles annually by 20 to. Thats my best guess, that for half a million in 2018, and sort of riverly 50 ish growth from there, then its probably around a million in 2020. Needing some additional capital, so that could be what is weighing on the stock today. Sanofi, saying it may raise the ovr. The stock is you can abouting the trend in the past month alone. Can m a by a lifesaver for biotech . Guys, great to have you with us. Im going to start out with you. There does seem to be so many reports out there. Whether its reuters city saying that astrazeneca could be a suitor. I think they are going to be acquired. I think its just a matter of time and price. Sano sanofi, if theyre serious, i would say that they should raise their bid. Weve been in print saying that, you know, we could justify a 70plus dollar valuation on the company just based on their lead drug for prostate cancer, and they also have a wonderful pipeline, so i think theres a higher bid to come. Is this a specific case in the center, do you think theres more deals to come . Mercks ceo saying that theyre specifically looking for more deals, but theyre not looking for consolidation deals, though they would be open to a biggest deal than the cube is last year. Right. I think this is he specifically med i vation. As far as were concerned the laterstage assets are more likely to be acquired, so we are picking through the rubble of biotech toss if there ares in latestage companies that have have you found any . Were still looking. I should say were spending a lot of time those without regulatory risk, or with Clinical Trial risk, i should say. Once you finish a Clinical Trial, assuming theres no terrible side effects and it works, youre likely to get approved. Thats where were focusing our attention in the biotech space, though i think medical devices are more likely as is sector to do well than biotech. Do you think it would be m a that helps the sector out of its funk . I hope so. Is the sector undervalued right now . We think the largecap stocks are close to historic low. Such as . But theyre relatively attractive on a valuation basis by the way we track it. I would say the one dysfunction between the desire and the actual realize sag of m a is the bull market of 2013 to 2015, where managements and boards saw their stocks at, you know, 40, 50 a share. But you dont have stock as currency to buy another stock . Yeah, the prices are in the single digits, and everybody remembers the salad days when they were 40 and 50, which maybe tripled the current market cap, so thats the real Sticking Point but they generate a lot of cash. Cant they tap the debt markets to find a deal if they really, really wanted to do a deal . Yeah, they could, but again, like mike said, a lot of these boards are anchored to price far far away, and so if they dont want to sell, the only option really is to go hostile. I dont really detect an appetite on the part of big farmo for hostile transactions. I think they would rather by friendly. I think there will be an increase in deal activity after the election once we have gotten past some of this. Yeah, i agree with lester. A lot of questions of the managements of boy Tech Companies during the First Quarter asking specifically will you go hostile . Pretty much everybody was begging off of that. Going to leave it there. Thank you for joining us. Melissa, i have a question. In brazil, it became a proxy for the election, and i wonder if the biotech index which got hit hard this week, is that a reflection of the presumptive nominee being Hillary Clinton and donald trump . I wonder if it starts to trade exclusively on the expectations about whether or not Hillary Clinton will be president . I think thats a difficult call to make. We have seen it take a tumble when the candidates started to talk about price controls, what is it, last summer . Right. The decline has extended ever since. I dont know if its if you take a look at the chart, its been a pretty depressed chart. Right. I wonder if that means more and more people thinks she might win. Expect for the fact that donald trump, we dont know where he stands at all on this. On a lot of things. Right. That would be even perhaps a bigger wild card out there. Low Interest Rate guy. Thats true. Low Interest Rate. Very different things. Very different. All right. In the meantime were coming up amazon a multitrillion Dollar Company . A big Silicon Valley investor says yes. Do the analysts agree . Well talk about that, plus donald trump is a businessman, but will business get behind him . What ceos think about the primpive nominee. Were back in two. Welcome back. Im tyler mathisen, along with michelle carusocabrera. Michelle lee is also in the house. Americas top ceos are all across the municipal in terms of support. In just the past 24 hours billionaires barry diller and spoke very candidly about mr. Trump. Theres nobody ive ever known in politics, ever that has risen to national i mean, to the presidency that was actually of evil washington. I think hes going to the the president. Whoever he has around him will be people who will help get things done. Well, there you would see a bit of a division. Lets talk about it with sydney final stein at dartmouth, his book is called request super bosses. And on theie ignatius two of the best Business Schools in the country represented here. You know six or seven years ago president obama was roundly criticized for poisoning the well against business, for using a phrase fat cats in referring to bankers. Mr. Trump, as he speaks about certain businesses hack even more pointed, calling out those businesses, whether its carrier air conditioners or caterpillar by name, is mr. Trump going to be accepted by Business Ceos if he so pointedly criticizes companies by name . I think that ceos dont have much of a choice. If it happens to be a President Trump theyll have to deal with him. I find it fascinating with the clip of barry diller to actually say what he said in public, that is really something. But the truth is they have to deal with him, have to work with him somehow, and president obama was really criticized tremendously for that. Somehow candidate trump is not getting criticized quite the same way. Why do you think that is . We have a teflon ceo in Ronald Reagan a while ago, and people are saying maybe well have the second coming. The teflon part is sticking. Otty ignatius, he has many ideas that mike cause problems for lots of business. 35 tariffs on goods made outside the United States, criticizing Companies Like apple. Can he be a business friendly president . I think we dont know. I think we dont know very much about donald trump. At one point there was a sense to support trump was to fail a litmus test, that history would we have six months before this election. I think the questions you are asking will disappear, because he is the nominee, representing the republican party. He may well this thing. I think people will adapt and find ways to work. Some ceos will support him, some wont, i dont see him beings on ra sized as inappropriate by a big group of ceos out there. Though and certainly i would think that business would like a lot of his tax proposals, lowering the Corporate Tax rate, making it presumably easier to repatriate dallas and profits held overseas. That would work in his favor, right, addadi . His policies will have advocates and detractors. Professor f oor final steen, do have the characteristics of a super boss . I dont think that would be the word to describe him. The key attribute is the ability to adapt, adjust, be agile, and thats been shown throughout history. I go back to president obama and say if we knew that the financial crisis was going to be as severe as it was. Gentlemen, thank you. Weve got to leave it there. Sydney finklestein and amount di ignatius, thanks very much. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Take a look at the price of oil. Were hitting session lows. We lost about a percent from the very top of the show, and take a look at whats going on in the markets. On the s p 500 we are also hitting session lows here. Down by about 0. 2 of 1 . It is worth watching. We do seem to be tracking as for the sectors, there are huge declines in Consumer Discretionary sector actually not anymore, but health care and energy are leading the ways. Utilities and discretionary are lower, the Department Store complex thats where were seeing the most pain ahead of a lot of retail earnings next week. Rick, what do you see going on in the bond market . Session highs on price lows on yield. Look at the intraday of 10s we have traded down to 175. Should we close down there that would be the lowe yield close one day shy of four weeks. Hey, i can remember 30 basis points. Thats long gone. Everybodys tracking together, of course, maybe year to date, ten years even more interesting. What a pattern, basically double bottoms in the mid 1610s. Were getting ever closer to that. Dollar index, third day of stabilization off a count we havent seen sis basic already our new years eve parties, because its the beginning of 2015. Lets look at a toyears chart. The more i stare at that, the more i show it to traders and take off what it is, they say, wow, that chart looks like tell go down further. Tyler, back to you. Rick, thank you very much. S make or break it for go pro. The company reporting after the bell today. The stock down 77 in a year. What is the problem there . And what will it take to turn it around . Thats still ahead on power lunch. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Hello, everyone. Im sue herera. Here is year cnbc news update for the hour. The fda announcing a ban on the sale of ecigarettes and other to bako products to people under the age of 18, in a shift vigorously opposed by the industry, manufacturers must seek federal permission to continue to market. George h. W. Bush and george w. Bush say they plan to sit out the general election. They say they will not endorse the presumptive nominee and they dont plan to vote in the november election. British Prime Minister David Cameron and osborn casting votes today. Local and may i dont recall elections are taking place. Voters are heading to the polls on whats been dubbed super thursday. Walmart is bringing greeters back to the front door by midsummer, the employed crease had been positioned throughout the store to help customers, it was so successful that walmart is moving them back to the front lines and the front door. Thats the cnbc news update this hour. Michelle, back to you. Thank very much, sue. Wow, both president s bush not going to vote. What does that tell you . We have rolled over, starting just about 1 00, power lunch wont take it personally, but the s p 500 is at session lows, lower by more than four points. Slowly by surely seeing every sector start to roll over as well. Health care is positive. Energy is barely positive. It lully had been negative despite the fact that oil is higher, appeared the worst performers utilities where we see american waterworks, edison, all lower by more than 1 at this hour. Tyler . Michelle, lets drill down on one of those sectors, including pet Consumer Discretionary. We have Gary Bradshaw as well, Senior Vice President and Portfolio Manager at hodges capital management. Both betting on the consumer. Welcome to both of you. Let me start by asking, you said at the beginning of the year, saw you this as a year with some volatility, but basically the start of the year would be flat. You have been dead right, with the exception of nasdaq, s p and dow basically flat, do you expect it to continue . Yes, i expect it to continue. Essentially were in a situation where the u. S. Economy is not in recession but its not fire on all cylinders, either. Theres very uneven Earnings Growth underlying the market. This is the other thing we want, to get returns, you have to actually look within the indices because of that i uneven performance, not at the index. So its really a stock pickers years, in other words, you cant index your way to success. Its an active managers year. A lot of people rode the inadditions and rising tide lifted all boats, and were shifting to a market where active management you think that the market is richly priced. Gary, do you see it that way . And second, why do you have too choices in the Consumer Discretionary area that you can get and talked about . Well, tyler, you know, we think investors are too pessimistic. In this low Interest Rate environment, we think the market will do and we expect the market to be up. We think the market multiple can expand. Good companies such as home depot and microsoft that we like, we think the multiples can expend as the earnings and cash flow expand. At the hodges blue chip fund, we think that home depot can be a very good stock, as they have the wind at their back, with housing doing better and home pries going up. People feel good about putting money into their homes. They just raised their dividends a 17 . And theyre buying in a ton of stock. That is quarter is down, but its and microsoft has a great deal yield with 102 billion of cash in the bank. So, patry, you liked energy, youve been borne out on energy. Energy has turned, do you think weve seen the bottom in oil. Thats question one, and question two, you like Consumer Discretionary, whats your argument behind that . On energy i think were starting toss the shakeout, so its time to start looking selectively at opportunities. I would like to see inventories drop off. Underlying disposk growth has been pretty solid. Consumer expectations have been pretty solid, so all the elements there, the ingredients are there to have continued consumers growth. The big driver of consumption growth in the United States has been steady job growth, and thats where, you know, tomorrows job report will be significant, because what we saw in the First Quarter was a dramatic fallout . Business investment, so far that has not translated into a falloff in hiring. If it does translate into a falloff in hiring, that could derail the consumer growth, but so far we have november seen that. Left it there. Patry, thank you very much. And Gary Bradshaw with hodges capital. Go to cnbc. Com to see another name that gary likes right now. Still ahead, our exclusive interviews with john williams, his thoughts on the economy and donald trump saying he would replace janet yellen. That is straight ahead. We are keeping an eye on the nasdaq as it nears correction territory. This is just two points away from being down a full 10 from the july alltime high. Power lunch will be right back. Ever. Get your own 24 7 dedicated business account team. And with double the lte coverage in the last year, you can get more done in more places. Right now, get 2 lines with 6 gigs each for just 80 bucks. And for a limited time, get a hotspot free. Yeah free. Switch your business to tmobile work today. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive melissa, thanks very much. Im here with john williams. Thanks for joining us. Thanks for coming here to stanford. Lets talk about the broader National Economic outlook. Things have gotten softer here, running about half a point, 0. 7 on First Quarter gdp after a not to write home about 1. 4 in the Fourth Quarter the last year, but youve been pretty optimistic about the turnaround. Give us a reason why. Just because you live out here in San Francisco . No, its not because im just optimistic. I think we have to be careful to not overrook on that data. Weve seen First Quarter data tends to come in much more even after the seasonal adjustment, and my colleagues at the San Francisco fed think that the underlying growth is really around 2 in the First Quarter. Well have to watch the data as we get to march, april and may Going Forward to see whether it comes true. Im not taking too much from it. It could be in fact a point and a half higher than actually being reported . Actually. That would be completely consistent with the trade of what we saw residual seasonality for many years now. The other thing i would point out is job growth has been really good during the First Quarter. Other indicators of the economy have always been good. I think its the gdp data that seems to be out of the sync. Critics say its not really indicative of a strong economy. First of all, its not all part time, its not all low wage. Were seeing increases in jobs throughout the spectrum of low, medium and higherwage jobs. And were seeing the vast majority of jobs are full time jobs. Still an elevated number of part tiism jobs, but those numbers have been coming down. I look at a lot of data. Theyre all pointing in the right direction. The fed held off in terms of raising Interest Rates in part of what is going on globally. What is your gauge of the effect or po teng as for Global Economic weakness for tect it. We spend a lot of time studying and analyzing, and that is true in january and february, theres a lot of certainly and concern about whats happening in china, i think we have seen that calm down quite a bit, and the incoming data are consisten with reasonably good global growth. Concerns ive had over Global Economic developments have come down and the uncertainties seems to have come down. You sound like a guy who wouldnt be reluctant to raise rates relatively soon. My focus is looking at our two mandates. Maximum employment and price stability. We made a lot of progress on employment. The inflation data have actually been pretty encouraging regarding getting back to 2 inflation, which we want to see. I think we could stay on our bake strategy of gradually removing policy accommodation over the next few years, and that would involve rate hike it is. Everybody wants to know how many this year . Datadependent. Typically people set two or three rate hikes this year. I think thats a reasonable view, but well be watching the data, make acquire that q1 blip or slowdown in gdp doesnt persist, making sure were making the right call. Here in San Francisco you cant by immune to whats happening nationally on the political front. We had donald trump on this morning, and heres what he said about janet yellen and low Interest Rates. Gives a listen. When her time is up i would most likely replace her, because i think it would be appropriate. Shes a low Interest Rate person, shes always been a low Interest Rates person, and i must be honest, im a low Interest Rate person. If we raise Interest Rates and if the dollar starts getting too strong, were going to have some very major problems. So, a couple things, first of all, is it weird that a member of the gop, which has been very critical is now saying that low rates seem to be good . Well, you know personally i think chairman yellen is doing a terrific job. Shes been navigating the fed through very difficult and challenging times. I think shes not only a great economy, great policy maker, shes a great leader of the fed. Im 100 in full support of what shes doing. In terms of politics, honestly my view is to keep my head down, study the data, focus on the goals weve been given by congress to achieve price stability and maximum employment. Thats what im focused on. Keep out of politics, stay apolitical. I get that, but if our survey, we asked economists, fund manager and, on the effect of the president ial campaign on the outlook, and many said it was negative. It has to figure into your theres the data, 6 is in april said the effect of the president ial campaign on the outlook is negative. That is seg weve been studying for many years, how uncertainly around politics do affect the willingness to invest to willingness to hire workers form thats something we have to take into account to the extent its happening. Thats going to affect obviously our assessment of appropriate policy. Right now the indicators i focus on about uncertainly, consumer confident, business confidence, they actually look pretty good. Im not so worried about that, but again we loot at a lot of data, so just focus on our job. I lived for six years in russia, a place that people wanted to leave. Now im in sfanz where there was a recent poll that said 34 want to leave San Francisco, because its too expensive. Is that something you think about at all in terms of whats going on in the economy of your region here . Its very difficult from russia. People are coming here for jobs. Job growth is fantastic. Its just gotten extremely expensive. We have a big concern about affordable housing, making sure there is house, and affordable living for people in our region, something that the fed works with local government, and with and other Community Organizations trying to work out solutions to find affordable housing. Basically healthy, strong communities, but this is a huge challenge. This is for us its a booming economy here, and it has gotten really expensive. One part of the booming economy, and we have to go here, but is this sharing or gigaeconomy, what effect is that having . The data that we do have including everybody, including people who are driving, you know, for uber or lyft, other Companies Like that. Its a tiny part, something were trying to understand how these Disruptive Technologies are changing the landscape. Right now its not a big part of it. We dont think its a driver fundamentally of whats happening with the economy. Let me go back to the big point. We have unemployment of 5 , the economy is growing, we added over 2, probably adding 2 to 2. 5 million jobs the were a very good place with the u. S. Economy today. John thank you for joining us. Sure. Back to you, michelle. Things seem sunnier here in San Francisco than maybe the rest of the country. And San Francisco is not russia, for sure. Thanks, steve. It was an historic day. A cruiseship docking in cuba for the first time in more than 50 years, but does it dock at a port that says it doesnt belong to cuba. Our next guest says yes, and that it was stolen from his family. Thats next on power lunch. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Welcome back to power lunch. Today turned out to be a big day for brazil. The speaker got spaepded by the Supreme Court from his host based on accusation that he abused hi powers and tried to meddle with the investigation into petrobras. Likely theyll vote yes to proceed with the trial, which means the vote would move to the nat next week. If a simple majority recommends impeachment, he would immediately step down for trial and the Vice President would assume president ial duties. Brazilian stocks trading lower on the day, but still up year to date. On that note, more signs of economic trouble in brazil. Car sales stalling big time. Phil lebeau has the details. They were down 25 in the month of april. 25 , and i think they were down Something Like 31 in the First Quarter. Its the old axiom, regardless of the market as Consumer Confidence goes, so goes auto sales. Consumer confidence is terrible in brazil, which is why the expectation for this year is that sales will drop 16. 5 . That means sales will likely come down to about 2. 1 million this year. I think brazil is going to fall back into the world ranking in terms of auto markets into fifth or sixth place. Again, the automakers, theyre not able to do too much about this. Theyre not predicting a bottom for the market just yet. Who has the most expos injure . Gm leads the market, just under 18 . They all have fairly starchal stakes. Its limited relative to how much money automakers are making here. They reported losses. Fee eight, cries lir better comparisons, it and an except relative to their competitors. Yeah, its a tough place economically. Thanks, phil. Carnival cruise lines made history this week, the first to bring passengers to cuba in more than 50 years after reestablishing diplomatic relations. You saw it reporting live as it pulled into port. The ship traveled not just to havana but to city including santiago. Our next guest says hes the Rightful Owner of the port, it was seized from hi family. You and hes not. Hes neurosurgeon in jacksonville, florida. Thanks for joining us here on power lunch. Why are you upset with carnival . The fact of the matter is theyre in violation of u. S. Law. Their trafficking with stolen superiority, in particular property with a certified u. S. Claim, which means that the owner of the property at the time it was confiscated in 1960, in october, illegali i might add by cuban and International Law was an american citizen. By u. S. Law, the embargo cannot be lifted and normalization cannot occur. For viewers unfamiliar, there are thousands of outstanding claims like this one, when Fidel Castrol seized, the claims were certified by the u. S. Government and sit in a building waiting to be settled with Companies Like ibm, cocacola, general electric, and like dr. Garcia said, according to the law the way it was written, the cuban government is supposed to make efforts before the embargo can be lifted. Are you satisfied with what the administration has done so far on the issue of claims . Not at all. I would point out, michelle, that something thats very important. The vast majority of the claimants, 8 a , 90 are individuals like me. Only 10 to 12 are large corporations. They make up 85 of the value of the claims, so really the failure of the administration to even address the claims, as required by law really is sticking it to the little guy, if you will. But no, im not pleased at all. The embargo most people dont realize was put into place as a measure, a sanction, an economic sanction against the cuban government for the confiscation of these properties, and by logic this should be the first issue to be addressed. Any idea how much this port would be worth today if it had remained in your family . Do you have any remedy here . It would probably an eight or ninefigure number for certain. It was a very profitable property not just for us, but for the entire community. This is an agricultural, an export community, sugar, citrus, cats, nickel, copper, the entire economy of eastern cuba was based on exports. This property was build was improved in the early part of the 20th century for that purpose, essentiallys a community service. So, you know, this is a very valuable property. Not just to us but to the entire local economy there. Donald trump and Hillary Clinton appear to be the presumptive nominees at this point. Donald trump actually ran for president once before back in 1999. This is video from then. His one big policy speech was about cuba. He wanted to be very tough on fidel castro. Do you have any reference, or do you think either candidate would be better for your claim . Oh, we have lost the guest. Let me just say that carnival has said theyre not aware of any details concerns claims on the ports they visit. They respect and follow all the lays of every play we visit and all u. S. And maritime laws, should there be any determine ailing that we are this violation of someone ace lawsuit rights, we would clearly respect that decision. The biggest boldest call we have haered for a long time. Is the company headed to 3 trillion . That debate next when power lunch returns. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Now up ahead, shot scores. Welcome back to power lunch. Were keeping a close eye on this market. As you see, the dow is down by just 0. 1 . Take a look at we can at oil. Thats where we first saw cracks in the market as we saw wti and brent boll roll over. Were only seeing less than 1 gains on both. Remember at one point in the seg we saw wti up by about 4 . On the nasdaq, that is what we are watching closely, about seven or eight points amp from correction territory. Were watching that index very, very closely at this hour. To seema mody for a news alert. New york city recommending the approval of cablevisions sales to europes altize, a draft resolution is going to be voted on next week on may 11th. This follows the fccs approval of this deal last night, now new york state is the only approve needed to get this deal solidified. Were looking at cablevision up fractionally on the day. Back to you. Got it, seema. Thank you. A Massive Wildfire burning in canada today, in Fort Mcmurray part of the the countrys oilsands region, forcing evacuation of at least 80 thousands people. 1600 homes or buildings burned. No indication of injuries or death related to the fire. The disruption to Oil Production pushed oil higher today by almost 4 . Also companies have cut output because of the fire. Deidra bossa is live in alberta. First lets bring in jeffrey grossman, an oil trader and president of brokerage. Oil production is falling. Jeffrey, why are we rolling over with oil today, considering we have what appearing to be very bullish news. The iranians are sabre rattling again when it comes to the strait of hormuz, and more. The fire, of course, gave it a bit of impetus this morning is a very small facto in at global market. Again, what we have seen more than any, the market is going in lockstep pretty much with the stock market. The stock market weakening this part of the day really took it with it. Again, im still very friendly to the market. I think its a healthy market in general and probably to be bought on dips, but the news of the fire has a very small effect. Interesting you had, for months almost from january 1, it seems to be that the stock market would mott higher if oil moved higher. That was the tail wagging the dog, so to speak. Thats been reversed . Somewhat, yes. I had my doubts of who wall street leading who. I always thought the stock market was more of a leader on that. You can take bets on both sides there. The reaction was understandable, and after a big of absorption. We have a market thats quite well supplied. Were moving were higher, and the market is not certainly collapsing by any means. Theres support levels that have been held. Right here, its still acting in a fairly healthy manner. We got it. Thank you, jeffrey. Jeffrey grossman. E a very fluid situation. We so see some plumes in the distance that werent there a few hours an. The updated numbers are staggers. Now coughs an area 210,000 sorry, the noise behind me we also have an estimate on how much this all might cost. They estimate it could cost as much as 9 billion canadian. They calculate there is 640,000 Barrels Per Day is offline. Theres still about 25,000 evacuees that are north of Fort Mcmurray. Because fire has been blocking the highway. Back over to you guys. Shares of amount zone up 14 , but today the worst day since march. Thats pressuring the nasdaq. Yesterday. He said am sob could be a 3 trillion company. S a satire thats just the beginning. Carlos kirshner is a stop ranked and jason el stein, carlos, im not sure if you have a model up to 2025. But retail would be a dlsh aws, amazon weapon services to be 1. 5 trillion can you see a path there, even . I agree hole heartedly, with this comment, which is theres tremendous value, and the treatment underestimates the potential. I think the message here is theres a lot of value that is underappreciated and underestimated. I do have a model for 2025, but i dont think its that helpful to its just a much bigger opportunity that is the much betteren than what the stock is reflecting. Doing see a bath to 3 trillion . I know you dont, because of what you stole i think you are get something. 850, 900 million. I think the concept is there. They just put up one of the greatest quarters they have ever done. Carlos, would you agree in terms of the relative value that hes putting on the businesses. The value. Amazon web services is supposed to be the crown jewel. Could it be more in terms of the i think both it kind of doesnt matter, right . Both agreed businesses that have tremendous value. I think the street, for example grossly underestimate the margin potential for both businesses. To give you a sen. Consensus missed consensus numbers are way too low. And this stock is going to go higher in an intermediate to long term. If its 3 trillion, 2. 5 trill chron, i think thats less important that is the fact this is one of the greatest companies of the in era. With this concept of a tax, the content of amazon has figured out how to make a model particular laically at a low margin. Thats really not a lot. So i think what ultimately, the reason why the street has missed the gross profit is ultimately they move it more and more to and control that last mile. Ultimately they brea even, probably stays break even for a while, but ultimately theres such a moat around this company, and aws is fundamentally different business. Its a tax on the interned held by a forprofit key company that we can all own right now. Is that the company saying low on margin, but just expanding the market . Key point is that its ever expanding. It depends on how much capital is investing. I believe that amazons Retail Business is fundamentally more cost official than brick and mortar retailers. Got the margins higher than what we see on brick and mortgage an details. On the gross merchandise volume. That would be north of 6 gross margins, and the way they book it could go north of 10 . Given the highly capital that is in the fullness of time. We want them to address in growth. On a very low capital basis, tremendous returns. Gentlemen, thank you for your insights. We appreciate it. New out trump campaign, naming a and some are raising red flax. Now that everyone else has dropped out, will conservatives start to back him in a meaningful way this that debate coming up. Try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. E. T. Phone home. [ soft music ] when you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Donald trump naming steven manuchin, and people already raising questions about his business background and history. Julia boorstin has more. Is then founded and became ceo of one west bank. Selling the bank to the cit group last all. He also formed do you know capital this then partnering with bret rack ner now han embarrassing chapter, relative media. Ryan calf nonis cochairman of the bore. He left on the heels of the company fids for channel 11 last year. Reportedly losing as much as 80 million. As well as the president atrun, a toll of 64,000 to democratic cases and len that is 40,000 to republicans over the past two decades, according to open secret. Michelle, back over to you. Thanks, julia. Donald trump speaking on cnbc about a host of issues facing the country, even as he becomes the likely nominee. There are new pops showing he would face po templeal a dramatic loss against Hillary Clinton. I conservatives and Business People going to get behind him finally . So jimmy p. , what do you think . Anybody by hillary . Or will they really get in there or sit it out just like we heard the bushes say theyre going to sit it out . I think the bushes mike an exception. I think people who makes money off the republican party, i think most of those people will back donald trump. Whether its sort of your more outside the beltway conservatives, i think there will be a lot of defection shuns, and trump is making it easy to defect. Hes already said now hes talking about raising the minimum wage. I think there will be large defection shuns. What do you think . Are conservatives going to get on board . I think what theyll do is back republican senate, make sure they can protect that senate majority. Right now republicans have 5 had seats in the senate, seven senators up for reelection. They might walk out, focus more on consequence. I assume youre talking about big donors and we can name some of the names that are in the headlines like the koch brothers, singer and so forth. You think they might not be active donors . Maybe not only because they dont necessarily agree with some of the mr. Trumps positions, but also because they may figure hes got the money, he doesnt need ours. They believe in free markets. Trump is kind of the opposite of that. He was economic government intervepgs, so i think what theyll do is focus on their own great roads business, theyll stay out of the trump hillary think. They have hitted that possibly they i think its more likely they take out of it all together. I dont guess that many of the evangelical conservatives who might have been drawn by ted cruz will you particular energized by trump in any ways. But as far as people who actually, lets say go to church like, you know, once a week, that may not be a particularly large group. Its going to be those people, a lot of economic free market types, i think they may stay at home, as well as people who dont like the way hes carried himself. And well sigh into the general election. Evangelical voters, make they dont like trump, even though we saw on some of the primaries, i dont think theyre going to vote for hillary. Or does trump, from the union vote, is he able to offset that . This whole idea of the evangelical votes. When they say how much of thunderstorms people voting for trump or hillary . A lot of people who identify arent the ones going to church ever week. The voting patterns are different from the people who selfidentify. Those are the ones who are more open to the trump area. Woe, interesting. I didnt know that. All right. Lets talk about oil. It is it is slightly higher today. Massive canadian wildfires disrupting production out there. To what extent we are not exactly sure. Were going to get the closing tratsds on oil, but using Virtual Reality to sell restade. Theyre battle it out next. Coolest fae further in this car, china is now lading the industry. Gaming and entertainment, but apparently also doing well in one surprise industry. A manhattan apartment that was using Virtual Reality to attract potential buyers. Now one start upis taking that technology and applying it. Deciding to take a virtual tour. This technology is being used in a number of different ways. Were able to show up and able to capture 3d, 360 photography, to show a place as if you were there. I would put it right here. We would have to hide behind walls or out of view, right . Because everything is in frame. Hitting the red button. Lets plug it in. Were empowering people to have an informed buying decision, severalally asaving them teem and money, but it doesnt come cheap. It can cost up to 15,000. Obviously youre working with real estate are you going to cut out the middle man . I think its going to enhance the ability to help the consumer. This is my first vittual reality experience. You can look up, down, all around, those pulsating mark will take you to all the different locations we shot within this department. Wow, cool. So is Virtual Reality the future of home buying . He says vr is the future. And bianci is featured on Million Dollars listing miami she says not so fast. Ryan, i get it, its cool, but do i have to own a par of those glasses in order to like at real state this way. I think that most people will. I think turning your head is kind of like turning your head to zillow or turning your head to the internet in the 90s soon they theyll. It seems like maybe not now, but soon. Its not a matter of ifs but when. Correct, 100 . I think that Virtual Reality is great, a great 2508, but thats where it stops. Its a tool. So say people can quickly look on wle its myself, ryan, whoever it is, explain it, show the difference between what that Virtual Reality is, its virtual, it is not reality, and i think thats where the issue lies. For example, i know a developer who has built a great marketing strategy, used Virtual Realitys amazing renderings, animation, and when the product was complete, it looked like eye kia, not to put down eye kia. If im a buyer in new york city and want to look at properties in florida, but i dont want to go to florida and go around to 20 properties, but i can experience some by vr and narrow it down, isnt that a more valuable experience more efficient mosh likely youll make a sale. You need me on the phone or me flying to new york, meeting you in person the oldfashioned way. My point is that before i go down, i can narrow the field of properties that i would actually spend my weekend looking at. Rye. Ryan, do you think you are get more foreign buyers thanks to vr . Of course. Look at new construction or a speck builder. You can walk in that home without ever having to go there. So youre using it in all projects. And the cost there was Something Like 15 grand, she said. Is that accurate . Have you evidence made a sale entirely on the use . If youre going to do one home, one apartment will it cost 15,000 . It depends on what you said to do. We did a virtual on tribeca, and really nice notos will cost jump as much. Having sold anything sight unseen . We sell things sight unseen in new york all of the time. Its great. How about you, sam . I have as well. Again, i think its great to have from the marketing and pr standpoint, but it wasnt just the Virtual Reality that sold it. It was me explaining the Virtual Reality, and then saying, look, look at this. Heres another example, kind of explaining against from a personal standpoint pros and cons. Going back to will it take the place of an agent . I think if youre a great agent, were advisers, were advising you, showing you all of the marketing, all of the Virtual Reality, whatever it is, but you still need us to hold your hand and explain if this is the right property for you. I agree. We are never going away. Thats something youll never be able to do. Were never going away. Thank you. I like that confidence. Thanks, guys. Now sue has the update. Heres your news update at this hour. At an event at the white house this morning, Michelle Obama announcing that private companies have committed to hiring 110,000 veterans, as part of the white housesponsored joining forces initiative. These people have done their jobs in some of the most challenging environments imaginable, so just think, if they can set up Wireless Networks in baghdad or do satellite reconnaissance in the mountains of afghanistan, i am pretty confident that they can handle whatever is happening in Silicon Valley, right . North carolinas how speaker says the state will not be bullied into meeting the justice departments deadlines for allowing transgender people to use rest rooms of their choice. Tim moore saying they will no action by monday even if they lose money. The autopsy reportedly found percocet in his system. Thats according to the minute mrs. Tribune, a spokeswoman for the local medical examiners office, however, that conducted the autopsy, decline to confirm those reports. The Rolling Stones want donald trump to stop using their music at campaign events. In a statement the band says they have never given permission to use their songs, trump telling cnbc he had no hard feelings about the snub, as he likes mick jagger a lot. Thats the news update. Ty, back to you. It is a great song for those kind of occasions, i have to say. High energy. Its high energy. Thats right. Sue, thank you. Oil closing for trading, prices mover higher, but given up most of the gains of the day as the huge wildfire disrupts production. The fire is moving south today, forcing the evacuation of more towns along the way, and Emergency Operations center has been forced to move as well. To further discuss how the fire may impact production, les bring in kyle cooper, president at iaf advisers. Kyle, what are you sensing about the impact that these the fires may or may not be having on the price action on oil today and this week . Certainly that was i think a primary impetus to the rise this morning. What it really impacts over longer terms remains to be seen. The oilsands are in proximity, but not directly in the path, so were just going to have to see sow the fire progresses and whether or not it approaches some of the production facilities. So why did the bigger gains of earlier in the day, as we look at the intraday chart, why did they melt away . Its not that they seemingly feel more under control. Probably just a realization that the overall market is still supplied, and there were other reports about possible disruption in libya. Libyan production is down already so much, too. Weve come quite a long ways from february, even as the total inventories continue to rise. I think its a balance in the market trying to stabilize and find out where it wants to be. Where do you think the market wants to be . It looks like right around here. The world was obviously long of oil at 100 back in 14. Certainly the world looks shower, in the low 30s, as production as finally started to roll over. However, as we see the Company Reports come out, costs are coming down. Whether or not were long or short i think remains to be seen. Just the efficiency gains is something were going to have to see how the production holds up. Kyle cooper, we appreciate you being with us. Should apple buy tesla just to get the hands on teslas biggest asset, elon musk . Well talk to a man who says the move would benefit everyone involved, coming up on power lunch. Ing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing after spepding most of the day in the green, most of the stocks have turned red as oil began to give up is big gains. Merck and caterpillar leading the way. And speaking of tesla, would an apple takeover of tesla makes sense for both companies . And both ceos . It may sound crazy, but teslas market closing is colloid to a billion. We have a guess that says apple really niece elon musk to replace tim cook. We discuss next on power lunch. This clean was like, pow it added this other level of clean to it. It just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. Sharing of tesla are lower today despite meeting earns expectation and bullish outlook. On the Conference Call last night elon musk talked about production of the new mowedle 3. Would aim to produce 100 to 200,000 model 3s in the second half of next year. Thats my expectation right now. As tesla ramps up production, does it make a more attractive takeover . He thinks apple should buy tesla and make elon musk the ceo. And also drew cu p. Ps. This is a pretty tough thing to say. What you think is basically that tim cook isnt good enough and elon musk would be better for apple . Yeah, tim cook is a great operations executive, one of the best in the world, however, when it comes to vision, being able to come up with new ideas and gets products out the door, hes not very competent. Elon has big ideas, he dreams big. He is literally shooting for mars. He could come in a brandnew vision and really whip the company into shape as far as Getting Technology out the door goes, and elons problem is he doesnt have the money or the ability to deliver. I dont get this at all. I mean, i get hes a visionary, but i dont get why an apple shareholder would want the company to actually own at motive manufacturing facilities at this point . That would be just a dri gression here at this point. Apple is a computer company. A smartphone company. Apple is building an apple car, because its realized that a car is simply an iphone on wheels. You pet put a motor on it and a body around it, its a if it were that easy, drew, there would be no concerns about execution right in the ramp to 500,000 vehicles by 2018. Yeah, i think that tesla and musk have a better iphone car probably than apple will have, and theyre very, very focused on it the i think any distraction from that or added responsibilities puts that vision and that competitive advantage in jeopardy. I was going to say, vivik. , are you throwing tesla under the bus if you put elon musk in charge of apple . Hes already running tesla and spacex. It sounds like the casualty here would be one of the two Smaller Companies . No, i would have the tim cook do the operations, hes very good at that. Im doubtful that elon will meet his goals of getting the model 3 out next year. I think its going to be a year late like everything else. Hes not good at details following up. Cook is excellent at that. So you let cook be the operations executive. I take some exception to that. I think that the goal setting that elon has done is more of a mo dulles op ranti than a set of failures. Hes missed several targets. I think the way he uses targets is they are, you know, somewhat ludicrous targets. He advances the ball substantially, but to produce the best car ever made, according to consumers reports within a year or so of when you intended it is spectacular. I think he has real manufacturing chops as well as visionaries chops. Are you say that tim cook should go this is that the bottom line . No, he should do what he does best. Hes an operations guy. You need them there, but you need ha visionary there, a steve jobs there. They havent released any new products for a long time, so steve was focused too much on perfection. Elon, the way he got the model s selfdriving software out. He got it out there and let the users perfect it. I dont know if i were tim cook and suddenly am answering to elon musk, i proprobably quit. I wouldnt sell my company. Guys, interesting discussion. Thank you so much. Provocative, huh . It was. Josh lipton has a news alert. Michelle, we know apple is decided indicated to trying to be much more of a powerful and influential player. News that speaks to that. Apple and s. A. P. Have announced a new partnership. They say this effort is going to deliver a new ios Software Development kit so developers and partners and customers can more easily build native ios apps tailor to do their business needs. In other words this will allow s. A. P. s nearly 3 Million Developers to create apps that run on ios devices. Partnering with one of the biggest players in the enterprise. This following similar partnerships weve seen apple team up with ibm and cisco. Guys, back to you. Jeff gunlock saying get out of utilities and into mortgage reits. What does the trading nation thing of that call . Thats next on power lunch. Gunlock made the case at the conference yesterday. Utilities are up like 40 and mortgage reits are slightly negative over that period. So the valuations have gotten incredibly stretched. If you o. Reits, you have a yield of 11plus. If you own the utilities, you get three. I will bet dollars to doughnuts that the two prices converge. Is that a smart trade . Dave see burg, head of, and kim force a Portfolio Manager. Good to have you with us. Would you follow his advice . We would not. We think a lot of especially Retail Investors get a little confused about about what a reit is and what the dividends represent. First of all, anything with a high dividend, theres a warning that theres some risk in that instrument. So i dont think regular Retail Investors understand is that the reits pay out the dividend based on the operating cash flows. They go up, they go down. This isnt a steady eddy different like theyre a big no seibert, thoughts . Look. Youre asking where to go with the yields . I do agree. I think as well we talked about this weeks ago, melissa. The mlps. If youre a believer that we receive at least some stabilization, right now its just under 8 . You know, i think if youre a believer in the bottom, you could see this thing move in price and see have a nice yield return there. So id be looking at that. But theres no question, i do believe with jeffrey, i do believe the fact that if you go after a search for yield, id be better off buys the reits over the utilities. All right, guys. Going to leave it there. Thank you. Kim forest and david seaburg. For more go to trade being nation. Com cnbc. Its fallen down sharply 7 . What went so wrong and can it be fixed . Youre watching cnbc, first in business worldwide. Shares of gopro down 3 . The Earnings Report due out after the bell. The stock is out 37 . Down more nan 75 in the past year. What is the problem at gopro and what should investors be focusing on in the numbers . Josh lipton joins us now from San Francisco. Josh. Well, melissa, analysts not expecting much when they hear results. They think the top line is going to drop about 50 . You mentioned the numbers of what the stocks done. The one question for investors is what do you think the real pressure is coming from . Do you think its coming from a saturated market . Do youly if you want a gopro, you have one . If you cover the Analysts Covering the stock, not just bulls but concept tif skeptics well, they mispriced that camera. They had to ultimately knock down the price not once but twice by 200 bucks. Analysts will say volumes from that will say they mismanaged it. That a lot of consumers didnt want that cubesized camera. The question is where can the stock go from here . What Knick Woodman and tony bates do if anything to win back investsers when you have a stock. Youre going to have a tough time winning back credibility. The few remaining bulls on the street will say, listen, you look for a couple of catalysts. Weve been waiting for the drone to come. They did put that selfimposed deadline on themselves. Do we hear nick talk about that drone . Is it still on target, and secondly what can he do for his next act. When they finally refresh it in the fall, one what are the features, bells and whistles that could bring people back. How does it going from bgs a oneup Software Company or an interface that keeps people using it. That as opposed to the oneon Product Sales which is as you mention vd not been executed well. Theyre going to launch this karma drone that is a sizeable potential opportunity for them. Granted, thats also a competitive marketplace. Well see if they stick to that target they have. You bring up a good point. Software on that last call when they were talking about their own problems, what did they pin it on, melissa . Woodman said were not making it simple enough. Its still too hard to edit and share cob tent. Now, theyve taken steps to try to address that. We saw a couple of acquisitions they did. But certainly thats another big hurdle. You have to have an easier way if you want to reach a bigger audience. Josh lipton, thank you. Josh lipton on the gopro earnings. Tyler. Melissa, thank you. Two former president s, both named bush, planning to sit this one out. Our chief correspondent john harwood joining us. John, welcome. It is quite, lets say, unconventional in this year of unconventional politics for former gop president s not to endorse the candidate of their party, especially since both george w. Bush the 43rd president and the 41st, George Herbert walker bush, have endorsed all other republican candidates since they left office. Thats true, tyler. But its also the case donald trump attacked george w. Bush for failing to keep the country safe before the 9 11 attacks while president. Im not surprised what he did to them and jeb bush, those family tice would dissuade them from getting involved in the race. Its beyond the bushes, really. Mitt romney mass said, for example, hes not going to the republican convention. The 2012 nominee. Extremely rare for the previous nominee not to show up. Mick romney gave a speech previously calling donald trump a phony and a fraud. He failed. In the april wall street wall street journal general poll, there wasnt enough to support him. Its a challenge for donald trump to unite this party. Does this help or hurt donald trump . If donald trump cannot amass a broader ray of support within the republican party, hes not going to have a chance to beat Hillary Clinton. That lack of republican support only validates the doubts of independents and others about donald trump. Remember, donald trump do you really think so, john . I remember when mitt romney made that speech and thought this is going to help him. It brings to melissas more point, maybe even more people to him. Within the republican primary, but its a much different story when we talk about a general election. Entirely different electorate. Hes got huge negative ratings among women, White College graduates, his spainics. All of these are big trouble for donald trump. If you have those saying that does not help donald trump in the general election. John harwood, thank you very much. Well be talking about this a lot in the next coming months. Ah, yes. Thanks for watching power lunch. Closing bell starts right now. Hi, everybody. Welcome to the closing bell. Im kelly evans at the new york stock exchange. Welcome back. Im bill griffeth. Oil in the green today. Well off the highs right now. One of the reasons given is the major wildfire moves moving closer to the sands. I have a bone to pick, but thats for another time. Were live on the ground in alberta, coming up in a moment. We have an exclusive interview with Dennis Lockhart coming up. Well talk to him whether a rate hike is in the cards. Stay tuned for the news. Earnings, wynn resorts,