Answers as power lunch from d. C. Begins right now. Welcome to power lunch. Here is what else is on the menu today. So much for d. C. Drama crushing the markets. Investors shaking off the political turmoil for a day. Is it rally on again . And for how long . Plus, for foot locker today, no thrill of victory. Just the agony of defeat. This stock sinking and smelling like an old shoe. Two allbeef patty special sauce pickles onions all sesame seed bun for mcdonalds. The burger boom alive and well on wall street. Brian . Kayla, thank you. And i want you to know im keeping your desk clean. Ive been using it. A one of the wildest weeks we can remember. The president getting ready to depart for his first overseas trip since taking office. Reporter when he talked to white house officials about the trip they used words like historic and words like reset. Both in terms of domestic politics with a tough week in washington, d. C. And in terms of the International Picture and resetting the debate in the middle east. The president very much focused on cutting a big deal if he can do it in the middle east while he is there. Take a look at the map and you will see that this is a very ambitious trip for a first trip of the president of the United States. They started out in saudi arabia. Then they are going to jerusalem. Then they are going to vatican city. Then up to brussels. Back down to sicily and italy. This is a multicontinental multitime zone multiclimate trip. A complicated one. There is going to be a diplomatic dance here with all of the different moving parts but they say they are ready for it and saying this president despite tough rhetoric on islam during the campaign might be in a position to actually cut a deal that other president s couldnt have cut. Meanwhile the president tweeting this morning saying he is very much look forward to it. Here is what president said on his twitter account. Saying, ready for my big foreign trip. Strongly protecting american interests. Thats what i like to do. The other piece of business they are working on here at the white house today is selecting an fb i director but brian we are told not to expect an fbi director pick today and certainly not before he leaves for the foreign trip. Brian . I will take it from there, aimian. The administration has a lot of things cooking right now. A wild week on wall street. Stocks marching higher. Firming up after wednesdays big selloff. Sitting currently around highs. And dominik chu with what is working todays market. Dom . As we look at Dow Jones Industrial average we look at wednesday with the worst trading day of the year big all of a sudden just about a quarter after percentage point away from flat lining for the week. So again, this is a pretty interesting week. One of the big contributors so far speaking of defense contractors in saudi arabia, boeing shares, one of the best performers if not the best point performer on the dow today. See that 1. 5 gain. Worth about 17, 18 points of dow gains overall today. Thats post 5 with imc. Lets look at citadel over here. As we look at one of the other big performers. Goldman sachs up today. We are talking about 15, 16 move here for Goldman Sachs shares as well. Caterpillar, want to point that out. It isnt dooer beere, but it is component. Then you look at overall here, United Health group, one of the other big performers, 1. 22 and change, maybe a little bit up. Still worth about 7, 8 points over all. As we talk about the dows top point contributors, guys, those are the ones to watch boeing biggest one so far. Back over foup. Thanks so much. So is this the rally that wont quit and simply cant be killed . Lets bring in steve wood chief Market Strategist and quincy cross by with prudential financial. Steve, to what do you attribute the stability we have seen yesterday and today as well . We think there is a lot of momentum in the market. Earnings fundamentals economic fundamentals are improving. The fundamentals are good in the u. S. But we think will valuations need excellent fundamentals. We think the knowant um and cycle driving the market eventually investors will look at firm valuations. Thats why we are advising our client to be more global and multiasset. What data point or policy developments would you look at and say okay now policy valuations are verified. It is a little premature. We have seen that the last couple of weeks. Even if we have trump economics implemented, we dont think you will. This is washington, d. C. We will take the politicians in politics but you would be looking at middle back half of 2018 by the time you get real feel impact from policies. But we would push that out so i think right now this is more being driven by momentum and sentiment than it would be fundamentals. Quincy, so many stock sectors are being driven by what is happening in the bond market. Im thinking specifically about financials and there was this expectation that banks would see this boom under the Trump Administration. But really when you see the tenure at levels that its been at, it is hard to see a tail wind for those companies. How closely are you watching the bond market and what is your forecast for it . Absolutely. The tenyear and the fundamentals, underpinning financials, the fact is that relationship with the tenyear yield is almost 95 since the trump rally. Then of course the selloff. Then the utilities got the bid. Almost the opposite of one another. The sea saw. But the fact remains that if the economy continues to grow even we get even a little bit of regulation pull back, itll be helpful for financials. We expect to see mergers and acquisitions that mergers can participate in. Then we think the tenyear yield will begin to climb a bit higher. Now keep in mind, the tenyear yield is a favorite spot for Pension Funds globally to get a yield. And one more volatile move in the markets, money comes in for safety pushing yields down. But absent all of that, we think that the tenyear yield reached a low point, can start climbing high earn beneficial at least from the trading side for the xlf to start, you know, getting a bit you see it already today with the financials getting a bit started yesterday. Keep in mind they were probably one of the strongest of the trump trade. Pull back and start again. Are you surprised to see volatility more prodly as low as it is . Even on wednesday when we saw the massive selloff. Vix climbing to 13 or 14. Absolute gain was not big. In this environment what we say to clients, valuations are high, fundamentals are good. So in that environment if you cut free, you dont have to be u. S. Only. If you look globeally, multiasset, then look at valuations as more of a tail wind. There is great fundamentals in europe. I think the volatility and complacency right now is an opportunity to just be very planful, very disciplined, rebalance. Just do the things you are supposed to do. Be global, multiasset, very discipline. You make it sound so easy. Not so. But we like that you make it sound that way. Thanks to both of you. Brian, back to you down in d. C. Thank you very much. President trump less than an hour away from taking off on his first foreign trip. Timing could be just what the doctor ordered after another rough and tumble week for the president. This time abroad helping reset the agenda and can congress use absence to get its economic agenda back on track and get big bills passed . Joining us now congressman mike kelly and congressman blumen our. Today they have a bipartisan bill with, an infrastructure bill but private Public Partnership financing and inpra structure bill more specifically we did a pan bell it this morning. Gentlemen, welcome. Thank you for joining us. Thank for having me. Before you give the details of this bill and how you came together on it, the president going away, first question is, in this environment, congressman kelly first to you, can we get anything done . Sure and we have to get things done. For the president youre either in the penthouse or outhouse. But it is good for him to get out of town. Reestablish who we are as heard. But is it good for you . No, it doesnt listen, whether the president is in town or out of town, the answer is, listen, earl and i have a job to do. It doesnt matter who is in the white house. Were in the peoples house. Our responsibility is to the people that we represent back home. Thats not always all republicans or all democrats. Why do you say why did you pat him on the shoulder and say yes, it is. I think the whirl wind comedy of errors in the white house, Dumpster Fire of the day, gets in the way. It takes the oxygen out. And the stuff that mike and i care about, for instance, rebuilding and renewing this country which should be a priority for the president , but hes got other things, he can can focus on h h some things. We can move it forward and it request h with help a host of items. The knee jerk from the media is the president s problems will derail anything he wants to get done. Gop and trump agenda are similar but not the same. They are independent. Youre a democrat and pushing for infrastructure. School of thought ive heard the last couple days is, you know what, maybe this gives us a little cover to go ahead and do what we want to do. And get things done on our own. Thats interesting. Ive never sat down and talked with earl so lets sit down and plan and get it done. Thats what they expect us to do. I dont think you wait for the best way to do it. Today is the best day to start and talk about it. We feel the same way. We go home and answer to the people that sent us to represent them. Have watched Congress Move forward. The president came up with some budget stuff and people in capitol hill looked at it. The president proposes, congress disposes. There are things that looks loopy. Culting medical research. No, were not going to do that. He can ca came to a budget agreement and infrastructure is one of these things. The bill we talked about this morning, it is a bill that short and sweet. It helps private money whatever that may be, Public Private investors funds, bonds, whatever. Availability bonds. It helps them build public buildings. A, do you think can you get this passed . B, if you do get it passed, what does it mean for viewers and investors . This is the tax code for taxexempt fie napsingfinancing. This is Public Private partnerships. Which we believe in. Itll be something every single american would be proud of. How do we get it done . Through communities of jurisdiction. But earl and i work hard on getting colleagues from both sides of the aisle together and senate on board too so we have like 11 republicans and 8 democrats on it bill on our side and i think in the senate 5 republicans and 3 democrats. Already bipartisan. Now it is going to be up to us to keep push aeng pushiing and pushing. This mechanism would give an interest break on financing for public buildings. We already do this. Called public activity bonds. We do it for water infrastructure. So far public buildings havent been eligible. Colleges, courthouses. My Community Just passed the largest bond measure in the history of the state to refurbish schools. So rebuild some high schools. To get rid of lead in drinking water. This allows us to unlock 1. 7 trillion of american capital, to be able to part of this and get an interest break. We are running out of time. I have to ask this because our audience, tax reform seems to be everything. Your bill would theoretically latch ton a tax reform package. Do you believe we will get one done . Its an open question. But this is stand alone legislation which we have been able to move forward in the past for private activity bonds for water. I think, mike and i, can get bipartisan support and people need to get things moving. This is a small step that might help us show that maybe we can do some bigger things. The fact that you two gentlemen are sitting hoor together having a discussion, producing a bill in both kayla, there is hope for america. I want to point that out. We arent fighting. No one is arm wrestling. No yelling. Well, im yelling. I always yell. Keep your mikes hot during the commercial break and sue hoe it unfolds behind the scenes. Is everyone on their best behavior . In the twitter world there is no commercial break. Thank you, brie bean, for fig bipartisan ground in d. C. Jackie . Good afternoon. If it is friday afternoon we are looking for recap numbers. 1th straig 18th straight week adding oil rigs in the United States. Up to a total count of 720. Thats up 402 versus a year ago. That is very significant. Can you see if you look at the chargeup oil prices, they are still trading over 50 and 5. 5 gain for the week. Back over to you. Jackie deangelis at the commodities desk. Bond may be in rally mode. Foot locker stinking up the joint. But first you will hear from one market launcher who says by now you could end up smelling like a rose. Check out russell 1,000. L brands, gap, raffle lauren and more. We will go inside the numbers, next. Ve how usaa gives me the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance, and i was not happy with the customer service. We have switched back over and we feel like were back home now. 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Tracking towards the worst week of the year. Here to bring us foot lockersing a knee lockers agony of defeat we dont write this stuff, guys. I have no claims to it. Quoting reagan. Foot locker isnt ending on a high note. Foot locker is not alone in the retail stinking up the joint today. It still missed. Foot locker shares down more than 20 for the week. On pace for the worst week since november 2008. Jeff any jeffrey, randal, shares are overselling on this news. Foot locker says that tax rebate delays hurt sales. But it did also say that style shifts did too and that there is lingering impact in the current quarter. Adidas is still hot but foot locker says the superstar styles are off their peaks. Underarmor is taking a hit in sympathy too. Bigger picture, still stuck in struggling womens apparel segment and not alone if the specialty apparel names, getting hit, urban outfit percent. Putting the stock on pace for the worst week since november 2008, is there hope left for the stock or did it just start off on the wrong foot . It keeps going and going. Lets bring in sam poser. Senior research analyst. A buy rating on the stock. Sam, you said you would buy on any weakness . Yeah. We have talked about this. So many moving parts to the First Quarter. I can walk you through it. Tax refund checks from february through march. Moved out of march, extra selling day in march. Easter in april. Lost sealing day a selling day. An asection holiday in europe, may 5th last year, may 25th this year. So really, i dont think we see a full view for any retailer, foot locker as well. I have a question. Its not like it is a they beat they miss your own expectations, correct . But you knew about these calendar changes. It is not like you open up the calendar this year and oh, easter is on this date. We knew that for a long time. How much do you forgive foot locker for blaming calendar on their misses. They end up at the end of the day with tax refunds moving in their biggest month. Biggest basketball month of the year and probably their second or third value month of the year as well. Because you have the nba allstar game and the money people had to spend and they did cough up high Single Digits in mar march and april and say traffic improved march and february. Others missed february and comped no low singles in march and april. This is still a very good company. I was going to ask you if the tax rebate is just an excuse or if that is a legitimate concern for the company. Are we seeing other retailers start citing that . And after they site it, is there that big boot . How many buy shoes with that refund especially now as curt knee said, make the stan smiths lost their luster. We can have the stan smith conversation, but in general, people spent a lot of money when they have it. And the question is, is if you are going to buy a pair of jordans, on february 25th, around the launch, and all of a sudden you get that money on march 15th, and she was already old that point in time, do you buy that same shoe, and the answer is no. But they clearly bought a lot of other stuff. Other things all work their way out. And thats what im saying is that i think february is an anomaly in general for all the retailers. All retail. Right. A lot of that had to do with tax refunds. I think if we can look at march, april, may together, once we get through may, then i think we will have a fairly good idea for foot locker or any other retailers as to what the trends really are. I think that this is the most confusing First Quarter i have ever seen. I dont think it is a read on the health of the not health of individual retailers. It is one big train wreck. A bunch of them come out of train wreck back on the tracks just for another pun for the day. Very quickly, do you cover deckers . I do. Deckers said they were doing as much as they are reporting next week. Do you want them to have al tern tists sin alternatives since you are working with them it doesnt make a lot of sense to me personally. I think you have to shrink the ugg business to grow it. We know that people are looking back on 2011 and 10 and 12, even numbers, which we just think were when the brand was much hotter than it is now. And to get the numbers they think they can get to it, i think it has to shrink. And so, i dont know what strategic would get it. They dont have a particular bench at ugg right now. And i dont know what private equity would right. Not much hope for it, basically. Variety can save uggs. Maybe not. Sam poser, thanks for coming in. Kids are buying