Transcripts For CNBC Power Lunch 20170606 : vimarsana.com

And welcome to power lunch. Im melissa lee. Not Much Movement in the market right now at the headline numbers. Little change d but to the down side right now. Hitting alltime highs, squared, dunkin brands, johnson and johnson. Wendys pulling back from a tenyear high after nelson pelts discloses a 22 stake and the gold miners on pace for their best day as gold nears a seven week high. Im Courtney Reagan. Here is what else is happening this hour. A man was shot by Police Outside the Notre Dame Cathedral in paris after he tried to attack an officer using a hammer. They are treating this as a paris incident and the area has been closed. U. S. Jobs openings rose to a record high but the pace of hiring slipped to oneyear low. Openings climbed to 6 million with more than half in the hotel and restaurant industry. And Chain Store Sales rose year over year as traffic trends improved with memorial day promotions driving demand supporting red book. Courtney, thank you very much. But we begin, where else, in washington. Concerns about the trump agenda, a scathing opinion piece in the wall street journal calling the president out for his twitter rants and personal feuds derailing his own agenda saying, quote, the most effective opponent of the Trump Presidency is donald j. Trump. This comes as the president meets with congressional leaders today to try to push his economic agenda ahead. Now to eamon javers live at the white house with more. Reporter youre right, it was a scathing editorial in the wall street journal today. This is the intellectual focal point of the conservative movement, establishment conservatives, look to the wall street journal editorial page to take their political lead. Here is what the wall street journal said this morning, though, about this administration under the headline the buck stops everywhere else in 140character increments mr. Trump diminished his own standing by causing a Minor International incident, defensemen monstrating that the who work for him isnt reciprocal. Set back his policy goals and wasted time that he could have devoted to health care, tax reform or infrastructure. The wall street journal clearly sfruclear ly frustrated with the tweets about the department of justice which the president has been critical of in tweets this week. The president is not persuaded by this argument. Here is what he said. The fake msm, Mainstream Media, is working so hard trying to get me not to use social media. They hate that i can get the honest and unfiltered message out. Meanwhile, were seeing some reports in some Media Outlets the president is considering using twitter during the comey testimony on thursday. Thats going to be a fascinating dynamic if we ste the fired former fbi director up there talking to members of congress up on capitol hill about what transpired between him and the president and the president responding in real time over twitter to those same comments so thats a Development Well have it to watch. I asked the white house today if they had any comment on this wall street journal he hedito and they said they have no comment on it, brian. Eamon, you live and work down there. Ive been there a few times but youre there every day. What ive encountered very deep offtherecord meetings with people in the administration and around the administration, they want him to put down the phone. To a person, to a woman, to a man that i have spoken with, they have said, gosh, we could get stuff done but these tweets create all these problems for us. Have you encountered the same kinds of comments and conversation in the people that you speak with every day . Reporter sure, absolutely. When you talk to white house officials about this they sort of shake their heads and graeme ace and say the tweets speak for themselves, the false position on all of the president s tweets and weve gotten this mini debate going about whether or not the Mainstream Media, as the white house likes to say is focusing too much on the tweets. We saw Kellyanne Conway saying theyre obsessing about the tweets. We should focus on what the president is doing rather than what the president is saying. The problem with that is that these tweets are coming directly from the president of the United States himself. These are president ial stramts of how he feels in the moment and hes very unguarded and candid in those. There are people inside this white house who would like him to stop tweeting or dial it way, way back. But the president himself sees it as a real source of direct communication to his political base, directly around the media, and its something he likes doing and will continue to do it. To your point it is smart. List en, it is honey to the meda bears. I mean, we jump on those traps. He lays them and we step right in them. Reporter the irony here you look at the president s tweet about the Mainstream Media trying to get him to stop tweeting. The Mainstream Media is covering those tweets incessantly. Are we Mainstream Media . Yes. Melissa, you are, courtney, you are. Im not sure i am. Media you are. Reporter you are sitting in an airconditioned tv studio in new jersey, you definitely are. Caked on makeup, youre out there working. Were sitting here talking off a teleprompter. You win. Javers one, sullivan zero. Reporter i suppose. Look, its a tactic the president likes. He feels he can connect with it. The danger is hes undermining his own staff, his own legal argument and a lot of his own policies when he does this. On thursday if we see a live back and forth between comey and the president , that will be historically unprecedented. All right, well leave it there, thank you. Eamon javers, in front of the white house. Ceos have not been this confident in it years. Kayla tausche . Reporter theyre maintaining their confidence now. They take the temperature of about 148 ceos about their plans for the next six months and their optimism about the u. S. Economy. The survey out today showed that reading is the highest since 2014 but that its flattened since a big jump that it saw in march. On sales the group remained bullish. On at that pointcal spending they expect small increases but plans for u. S. Hiring in the next six months dropped as did the outlook for the gdp growth. Now they expect a flat 2 gdp growth, a decrease of 0. 2 . The ceo, josh bolten from the bush white house, said the optimism is underpinned specifically by tax reform and that if that hits the skids ceos will be quick to reduce their current plans. He told reporters this morning, quote, what policymakers should take away from that is u. S. Businesses remain very optimistic but theres also a potential down side from failure. That should add to the urgency with which they pursue these reforms. The survey took place between may 3 and may 24th. The president he fired thenfbi director james comey. As you were just discussing, those are two stories that have not gone away since then. They have only dragged out. Well see whether that in future readings continues to affect ceo confidence. All right, kayla, thank you very much. As kayla told you, ceos are more optimistic and want to hire more workers but oddly they seem to not be able to hire. According to the latest monthly survey more than 6 million open jobs in america right now. Folks, that has never happened. Last month hiring actually fell. More jobs but less pace of hiring. What is going on . Bill george, senior fellow and howard schweitzer, partner at cozen oconnor. You were a ceo, i cant find skilled workers. Weve also got a geography gap, millions of criminal records of people who cant get jobs. What do we need to do under the Trump Administration or wherever fix it to get jobs and america growing again . Brian, we need to train workers for the jobs of the future. 6. 5 Million People who cant find work are not really employable for the kinds of jobs theyre looking for computer programmers and people who can run robots and 3d printing and all of these jobs, even Service Industries are going heavily to automation. And i think we need to retrain our whole workforce. I would like to see a major coalition between business and government to get together in a huge commitment, Business Leaders are more optimistic to go after training for 2020. Some of the places have done a wonderful job. Charlotte, north carolina, an apprenticeship program. We can take a lesson from the german industries. We need to train our workers for these jobs of the future and, also, let in more immigrants with visas that can fill them. Right now the economy cant grow, brian, unless we have poem to fill the jobs and we get boosted again and get this moving. I think youre at rock bottom as far as unemployment goes which is great news. Now were in full employment. Lets get people trained for the jobs and we have to get to work on that. We didnt do it for eight years in the obama administration. Now is the time to get moving. Is there an issue, bill, with desire for the workforce . Do folks that are going to be coming into the workforce want to be trained to run these automated Robotics Systems . How do you match up desire and what businesses need and how early do you have to start that . Is this high school or way before . I think it is. Not everyone should go to a fouryear college. The votech schools are fantastic places. We should be doing more from 15 and 16 looking at people who want to become plumbers and electricses, highly Skilled Service workers and we can do that. I think we havent because we havent had that level of commitment. The economy is not going to grow. You see the expectations for growth declining. You see the job hiring expectations down 3 . Every ceo cant find the people they want and frankly if they cant find them theyre going to have to go overseas. Move those jobs to india, china, and places like that. Sure. We want our economy to grow i want to bring howard into the conversation, bill. Just to sort of follow up on this whole notion at what point how long do we have until we figure out this problem . How long do we have . You know according to the notes i have here the trump rally has been real. Weve seen a real rally, a real impact on ceo optimism. But theres a baton that needs to be passed. How long until we have to fix this hiring program before it starts threatening growth . I think we need to create conditions that are conducive to growth. Businesses want tax reform. Business is very excited about the Trump Administration. Public pessimism about the russia investigation and various aspects of the presidency below the surface theres a lot happening. Thats the agenda at its core and theres a lot more there than meets the eye. Putting people into places where there will be a lighter touch has a major impact. Were not seeing the things that ceo optimism is high but maybe theyre not using it at this point. It takes time. It takes time for the actions that washington takes or doesnt take to filter into the economy. And i have many clients that they have employees here and overseas. Regulator regulatorily, they will invest here, get this economy off the slow growth path its on and get things moving. Going to leave it there. Bill george and howard schweitzer. Still ahead a bracelet that helps kids code. A startup helping to inspire the next generation of female leaders in science and math. But first a look at stocks. Dom chu has the story. Melissa, only a handful of stocks. Well take you through the winners and losers from a point perfe perspective right after the break. Keep it here on power lunch. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong Insurance Plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Is unlike anything what we have ever faced. [ sinister laugh ] whats happening . You have been selected. [ dramatic music ] give in to me. Im scared. [ screams ] [ dramatic music continues ] [ grunts ] the mummy. Rated pg13. What the mwhat the. Turned. [ eerie music ] [ guitar plays ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ drum beats ] [ upbeat music ] she is real. The mummy. Rated pg13. Welcome back. The dow is lower by 39 points, up 7 this year. There are eight stocks responsible for almost all of the gains so far this year. Dominic chu has the names. Happy birthday, dom. Thank you very much, melissa. I really appreciate it. Now he can drive. Finally i can drive. But speaking about driving these guys in the drivers seat for the dow overall eight stocks like you said powering the 1,400 points the dow is up so far this year. We can show you the range were talking about. 1,400 points like we said, 263 of them have been just apple. Apple has been up a tear. Also bowing responsible for that gain as well and mcdonalds rounding up the top three. The biggest drag so far from a point perspective ibm. 93 points down. We know the energy trade has been terrible and Goldman Sachs the biggest point detractor so far this year. A price weighted index. These are the big winners and losers so far in 2017. Back over to you. Year to date the tenyear note is down 12 . Is this a bad sign for stocks . Joining us is paul christopher, at wells fargo investment institute, the president of james advantage funds. James, im going to give you a big oh and start out with you. If we can just get started with why you are a little bit pessimistic when it comes to whats going on in the stock market. Even though we have seen the market move slowly higher and not get derailed by anything whether its a stalled agenda in washington or whats going on around the world when it comes to terror attacks. Why are you making these moves now . You make a great point. Were kind of lonely bears on bear island. We do our own research and it says the risks are risinging. We dont know when there will be a peak in the market and a tumble. It looks like a tire with a bulge in it and the air will come out slow ly or a blowout. We have high valuations. They would say 1 to 3 over the next fiveyear type of returns. Were seeing if we do our research, we see some very strange things. The 12 months ending march stocks that add earnings did 16 less than companies that had no earnings. So you see this thing where the quality isnt being rewarded and as we mentioned there about the dow a lot of companies are pulling the market and theyre really not all the market if you look at the last three months, the s p, the typical stock only half a percent but the index up 2 1 2. There are fewer generals out there not as many privates. We believe its time to sell and i was selling before i came on and ill be after i leave the studio today. Paul, you see a lot of this as mind over matter. Psychology is important but youre able to push uncertainty to the side. Whats your strategy and why do you disagree with what barry is saying about potential risk . Look, we he also see consolidation in the s p 500 and our yearend target up to 2330 so a 5 down side were expecting on the psychological issues as people begin to face the prospect of higher inflation next year. We are look iing for further earnings gains this year and next year, probably the year after as well. We think the market will make new highs. Regarding the administration in congress and tax reform and those issues. Paul, what stands out to me these are cyclical and it seems to me were seeing a defensive bent in the market, reaches for yield through Consumer Staples and the bond market, growth. They dont necessarily depend on a trump tweet. Facebook will grow, google will grow. Are you loading up in anticipation of Economic Growth in the United States, Something Better than now . Yes. We think we will have a modest acceleration. We do like the cyclicals going forward. Were not willing to make allowances at this point for parameters of how strong fiscal improvement will be. Base it on the economy, looking for acceleration. Guys, thank you, paul and barry. Thank you. Home prices are soaring in many parts of america but is housing now finally about to hit a wall . Plus the Worlds Largest cancer conference wrapped up in chicago. There were big breakouts including this stock. That name and why it did that coming up. Into my business. And i had all these points from my chase ink card. So bought ingrients, utensi, even made stom donut cutters. W all wi points. Thats w i created the ripple the doughnut in a doughnut in doughnut. Suddenly iteverywhere. I me, it really took off. What will you eate with your points . Learn more about the ink business preferred card. Ive got a nice long life ahead. With your points . Big plans. When i found out meca dsnt pay almy medal expenses, i looked at my options. Th i g a medicare supple insance plan. [ male announcer ] iyoure eligible for medicare, you may know it only covers about 80 of your part b mecal expenses. The rests up to you. Call now and find out about anarMedicare Supplement Insurance Plan, insured by unitedhealthcare Insurance Company. Li ait helps pick up some of whamedica doesntay. Lans, d could save you in outofpocket medical costs. To me, relatnships matter. Iveeen with my door for 12 years. Now i know ilbe able to stick with m. [ male announcer ] 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. So dont wait. Call now and request this free decision guide help yoand which aarpstand Much Movement<\/a> in the market right now at the headline numbers. Little change d but to the down side right now. Hitting alltime highs, squared, dunkin brands, johnson and johnson. Wendys pulling back from a tenyear high after nelson pelts discloses a 22 stake and the gold miners on pace for their best day as gold nears a seven week high. Im Courtney Reagan<\/a>. Here is what else is happening this hour. A man was shot by Police Outside<\/a> the Notre Dame Cathedral<\/a> in paris after he tried to attack an officer using a hammer. They are treating this as a paris incident and the area has been closed. U. S. Jobs openings rose to a record high but the pace of hiring slipped to oneyear low. Openings climbed to 6 million with more than half in the hotel and restaurant industry. And Chain Store Sales<\/a> rose year over year as traffic trends improved with memorial day promotions driving demand supporting red book. Courtney, thank you very much. But we begin, where else, in washington. Concerns about the trump agenda, a scathing opinion piece in the wall street journal calling the president out for his twitter rants and personal feuds derailing his own agenda saying, quote, the most effective opponent of the Trump Presidency<\/a> is donald j. Trump. This comes as the president meets with congressional leaders today to try to push his economic agenda ahead. Now to eamon javers live at the white house with more. Reporter youre right, it was a scathing editorial in the wall street journal today. This is the intellectual focal point of the conservative movement, establishment conservatives, look to the wall street journal editorial page to take their political lead. Here is what the wall street journal said this morning, though, about this administration under the headline the buck stops everywhere else in 140character increments mr. Trump diminished his own standing by causing a Minor International<\/a> incident, defensemen monstrating that the who work for him isnt reciprocal. Set back his policy goals and wasted time that he could have devoted to health care, tax reform or infrastructure. The wall street journal clearly sfruclear ly frustrated with the tweets about the department of justice which the president has been critical of in tweets this week. The president is not persuaded by this argument. Here is what he said. The fake msm, Mainstream Media<\/a>, is working so hard trying to get me not to use social media. They hate that i can get the honest and unfiltered message out. Meanwhile, were seeing some reports in some Media Outlets<\/a> the president is considering using twitter during the comey testimony on thursday. Thats going to be a fascinating dynamic if we ste the fired former fbi director up there talking to members of congress up on capitol hill about what transpired between him and the president and the president responding in real time over twitter to those same comments so thats a Development Well<\/a> have it to watch. I asked the white house today if they had any comment on this wall street journal he hedito and they said they have no comment on it, brian. Eamon, you live and work down there. Ive been there a few times but youre there every day. What ive encountered very deep offtherecord meetings with people in the administration and around the administration, they want him to put down the phone. To a person, to a woman, to a man that i have spoken with, they have said, gosh, we could get stuff done but these tweets create all these problems for us. Have you encountered the same kinds of comments and conversation in the people that you speak with every day . Reporter sure, absolutely. When you talk to white house officials about this they sort of shake their heads and graeme ace and say the tweets speak for themselves, the false position on all of the president s tweets and weve gotten this mini debate going about whether or not the Mainstream Media<\/a>, as the white house likes to say is focusing too much on the tweets. We saw Kellyanne Conway<\/a> saying theyre obsessing about the tweets. We should focus on what the president is doing rather than what the president is saying. The problem with that is that these tweets are coming directly from the president of the United States<\/a> himself. These are president ial stramts of how he feels in the moment and hes very unguarded and candid in those. There are people inside this white house who would like him to stop tweeting or dial it way, way back. But the president himself sees it as a real source of direct communication to his political base, directly around the media, and its something he likes doing and will continue to do it. To your point it is smart. List en, it is honey to the meda bears. I mean, we jump on those traps. He lays them and we step right in them. Reporter the irony here you look at the president s tweet about the Mainstream Media<\/a> trying to get him to stop tweeting. The Mainstream Media<\/a> is covering those tweets incessantly. Are we Mainstream Media<\/a> . Yes. Melissa, you are, courtney, you are. Im not sure i am. Media you are. Reporter you are sitting in an airconditioned tv studio in new jersey, you definitely are. Caked on makeup, youre out there working. Were sitting here talking off a teleprompter. You win. Javers one, sullivan zero. Reporter i suppose. Look, its a tactic the president likes. He feels he can connect with it. The danger is hes undermining his own staff, his own legal argument and a lot of his own policies when he does this. On thursday if we see a live back and forth between comey and the president , that will be historically unprecedented. All right, well leave it there, thank you. Eamon javers, in front of the white house. Ceos have not been this confident in it years. Kayla tausche . Reporter theyre maintaining their confidence now. They take the temperature of about 148 ceos about their plans for the next six months and their optimism about the u. S. Economy. The survey out today showed that reading is the highest since 2014 but that its flattened since a big jump that it saw in march. On sales the group remained bullish. On at that pointcal spending they expect small increases but plans for u. S. Hiring in the next six months dropped as did the outlook for the gdp growth. Now they expect a flat 2 gdp growth, a decrease of 0. 2 . The ceo, josh bolten from the bush white house, said the optimism is underpinned specifically by tax reform and that if that hits the skids ceos will be quick to reduce their current plans. He told reporters this morning, quote, what policymakers should take away from that is u. S. Businesses remain very optimistic but theres also a potential down side from failure. That should add to the urgency with which they pursue these reforms. The survey took place between may 3 and may 24th. The president he fired thenfbi director james comey. As you were just discussing, those are two stories that have not gone away since then. They have only dragged out. Well see whether that in future readings continues to affect ceo confidence. All right, kayla, thank you very much. As kayla told you, ceos are more optimistic and want to hire more workers but oddly they seem to not be able to hire. According to the latest monthly survey more than 6 million open jobs in america right now. Folks, that has never happened. Last month hiring actually fell. More jobs but less pace of hiring. What is going on . Bill george, senior fellow and howard schweitzer, partner at cozen oconnor. You were a ceo, i cant find skilled workers. Weve also got a geography gap, millions of criminal records of people who cant get jobs. What do we need to do under the Trump Administration<\/a> or wherever fix it to get jobs and america growing again . Brian, we need to train workers for the jobs of the future. 6. 5 Million People<\/a> who cant find work are not really employable for the kinds of jobs theyre looking for computer programmers and people who can run robots and 3d printing and all of these jobs, even Service Industries<\/a> are going heavily to automation. And i think we need to retrain our whole workforce. I would like to see a major coalition between business and government to get together in a huge commitment, Business Leaders<\/a> are more optimistic to go after training for 2020. Some of the places have done a wonderful job. Charlotte, north carolina, an apprenticeship program. We can take a lesson from the german industries. We need to train our workers for these jobs of the future and, also, let in more immigrants with visas that can fill them. Right now the economy cant grow, brian, unless we have poem to fill the jobs and we get boosted again and get this moving. I think youre at rock bottom as far as unemployment goes which is great news. Now were in full employment. Lets get people trained for the jobs and we have to get to work on that. We didnt do it for eight years in the obama administration. Now is the time to get moving. Is there an issue, bill, with desire for the workforce . Do folks that are going to be coming into the workforce want to be trained to run these automated Robotics Systems<\/a> . How do you match up desire and what businesses need and how early do you have to start that . Is this high school or way before . I think it is. Not everyone should go to a fouryear college. The votech schools are fantastic places. We should be doing more from 15 and 16 looking at people who want to become plumbers and electricses, highly Skilled Service<\/a> workers and we can do that. I think we havent because we havent had that level of commitment. The economy is not going to grow. You see the expectations for growth declining. You see the job hiring expectations down 3 . Every ceo cant find the people they want and frankly if they cant find them theyre going to have to go overseas. Move those jobs to india, china, and places like that. Sure. We want our economy to grow i want to bring howard into the conversation, bill. Just to sort of follow up on this whole notion at what point how long do we have until we figure out this problem . How long do we have . You know according to the notes i have here the trump rally has been real. Weve seen a real rally, a real impact on ceo optimism. But theres a baton that needs to be passed. How long until we have to fix this hiring program before it starts threatening growth . I think we need to create conditions that are conducive to growth. Businesses want tax reform. Business is very excited about the Trump Administration<\/a>. Public pessimism about the russia investigation and various aspects of the presidency below the surface theres a lot happening. Thats the agenda at its core and theres a lot more there than meets the eye. Putting people into places where there will be a lighter touch has a major impact. Were not seeing the things that ceo optimism is high but maybe theyre not using it at this point. It takes time. It takes time for the actions that washington takes or doesnt take to filter into the economy. And i have many clients that they have employees here and overseas. Regulator regulatorily, they will invest here, get this economy off the slow growth path its on and get things moving. Going to leave it there. Bill george and howard schweitzer. Still ahead a bracelet that helps kids code. A startup helping to inspire the next generation of female leaders in science and math. But first a look at stocks. Dom chu has the story. Melissa, only a handful of stocks. Well take you through the winners and losers from a point perfe perspective right after the break. Keep it here on power lunch. Your Insurance Company<\/a> wont replace the full value of your totaled new car. The guy says you picked the wrong Insurance Plan<\/a>. No, i picked the wrong Insurance Company<\/a>. With Liberty Mutual<\/a> new car replacement\u2122, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you\u2122. Liberty mutual insurance. Is unlike anything what we have ever faced. [ sinister laugh ] whats happening . You have been selected. [ dramatic music ] give in to me. Im scared. [ screams ] [ dramatic music continues ] [ grunts ] the mummy. Rated pg13. What the mwhat the. Turned. [ eerie music ] [ guitar plays ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ drum beats ] [ upbeat music ] she is real. The mummy. Rated pg13. Welcome back. The dow is lower by 39 points, up 7 this year. There are eight stocks responsible for almost all of the gains so far this year. Dominic chu has the names. Happy birthday, dom. Thank you very much, melissa. I really appreciate it. Now he can drive. Finally i can drive. But speaking about driving these guys in the drivers seat for the dow overall eight stocks like you said powering the 1,400 points the dow is up so far this year. We can show you the range were talking about. 1,400 points like we said, 263 of them have been just apple. Apple has been up a tear. Also bowing responsible for that gain as well and mcdonalds rounding up the top three. The biggest drag so far from a point perspective ibm. 93 points down. We know the energy trade has been terrible and Goldman Sachs<\/a> the biggest point detractor so far this year. A price weighted index. These are the big winners and losers so far in 2017. Back over to you. Year to date the tenyear note is down 12 . Is this a bad sign for stocks . Joining us is paul christopher, at wells fargo investment institute, the president of james advantage funds. James, im going to give you a big oh and start out with you. If we can just get started with why you are a little bit pessimistic when it comes to whats going on in the stock market. Even though we have seen the market move slowly higher and not get derailed by anything whether its a stalled agenda in washington or whats going on around the world when it comes to terror attacks. Why are you making these moves now . You make a great point. Were kind of lonely bears on bear island. We do our own research and it says the risks are risinging. We dont know when there will be a peak in the market and a tumble. It looks like a tire with a bulge in it and the air will come out slow ly or a blowout. We have high valuations. They would say 1 to 3 over the next fiveyear type of returns. Were seeing if we do our research, we see some very strange things. The 12 months ending march stocks that add earnings did 16 less than companies that had no earnings. So you see this thing where the quality isnt being rewarded and as we mentioned there about the dow a lot of companies are pulling the market and theyre really not all the market if you look at the last three months, the s p, the typical stock only half a percent but the index up 2 1 2. There are fewer generals out there not as many privates. We believe its time to sell and i was selling before i came on and ill be after i leave the studio today. Paul, you see a lot of this as mind over matter. Psychology is important but youre able to push uncertainty to the side. Whats your strategy and why do you disagree with what barry is saying about potential risk . Look, we he also see consolidation in the s p 500 and our yearend target up to 2330 so a 5 down side were expecting on the psychological issues as people begin to face the prospect of higher inflation next year. We are look iing for further earnings gains this year and next year, probably the year after as well. We think the market will make new highs. Regarding the administration in congress and tax reform and those issues. Paul, what stands out to me these are cyclical and it seems to me were seeing a defensive bent in the market, reaches for yield through Consumer Staples<\/a> and the bond market, growth. They dont necessarily depend on a trump tweet. Facebook will grow, google will grow. Are you loading up in anticipation of Economic Growth<\/a> in the United States<\/a>, Something Better<\/a> than now . Yes. We think we will have a modest acceleration. We do like the cyclicals going forward. Were not willing to make allowances at this point for parameters of how strong fiscal improvement will be. Base it on the economy, looking for acceleration. Guys, thank you, paul and barry. Thank you. Home prices are soaring in many parts of america but is housing now finally about to hit a wall . Plus the Worlds Largest<\/a> cancer conference wrapped up in chicago. There were big breakouts including this stock. That name and why it did that coming up. Into my business. And i had all these points from my chase ink card. So bought ingrients, utensi, even made stom donut cutters. W all wi points. Thats w i created the ripple the doughnut in a doughnut in doughnut. Suddenly iteverywhere. I me, it really took off. What will you eate with your points . Learn more about the ink business preferred card. Ive got a nice long life ahead. With your points . Big plans. When i found out meca dsnt pay almy medal expenses, i looked at my options. Th i g a medicare supple insance plan. [ male announcer ] iyoure eligible for medicare, you may know it only covers about 80 of your part b mecal expenses. The rests up to you. Call now and find out about anarMedicare Supplement<\/a> Insurance Plan<\/a>, insured by unitedhealthcare Insurance Company<\/a>. Li ait helps pick up some of whamedica doesntay. Lans, d could save you in outofpocket medical costs. To me, relatnships matter. Iveeen with my door for 12 years. Now i know ilbe able to stick with m. [ male announcer ] 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. So dont wait. Call now and request this free decision guide help yoand which aarpstand Medicare Supplement<\/a> plan might be bt for you. Helptheres wide rangetand medito choose from. Plan we love to travel. Antheres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement<\/a> Insurance Plan<\/a>s endorsed by aarp, an Organization Serving<\/a> the needs of people and over for generations. Remeer, all medicare supplent Insurance Plan<\/a>s lp cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Welcome back. New data showing that soaring home prices may have final ly ht a wall. Diane ole nick is live. Reporter house prices are raising at twice the rate of incomes. That could be a sign theres a limit despite the competition. Home prices in april were up 6. 9 year over year according to a new report out today. Thats still a hefty gain but smaller than in march and february and it is lowering to just over 5 . Now its not brain surgery its affordability plain and simple. Yes, there are extremes Like Washington<\/a> vs. Connecticut, seattle in washington, home prices up 12 year over year. In connecticut theyre flat year over year. Jobs, a lot of jobs in seattle. Tight supply of homes for sale has been pushing prices into the redhot zone. The supply situation is not really easing up. If you cant afford a home, then youre just going to continue to rent. Sales are dropping and prices lag by a few months. We should see them even more over the summer and could more quickly it if Mortgage Rates<\/a> actually do rise over the summer. Lots more online. Back to you guys. Its a tale of two automak s automakers. Tesla up more than 60 and hitting record highs. Both meetings with shareholders today. Whats ahead for them and their stocks plus the number of stocks on the back of the worlds biggest cancer conference. The name when we come back. Tly. But we are not victims. We are survivors. We are survivors. We are survivors. And now we take brilinta. For people whove been hospitalized for a heart attack. We take brilinta with a baby aspirin. No more than one hundred milligrams. As it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a Clinical Study<\/a> brilinta worked better than plavix\u00ae. Brilinta reduced the chance of another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor,. Since stopping it too soon increases your risk of clots in your stent,. Heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily,. Or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers,. A history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding,. New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. Hi, everybody, im sue herera. Here is your update this hour. Jeff sessions speaking on human exploitation. He pointed to a New York Times<\/a> report on rising Drug Overdose<\/a> deaths. The New York Times<\/a> just had a report i saw this morning that suggests the new data it for 2016 will show 59,000 people in america died from a Drug Overdose<\/a> and will be a factor, i believe, in child abuse. And the breakdown of families and all the destruction that comes with that. A georgia woman is behind bars accused of leaking a topsecret document about sh russian meddling in the 2016 election. 25yearold reality winner is charged with send iing a classified report to an online media outlet. Prosecutors say winter admitted she was the leaker. And check this out, as others looked on this customer pulled a nearly 4 foot snake from inside a gas pump at a gas station in georgia. He used a shirt and the nozzle to pull a nonvenomous reptile from its hide place. He called the removal no big deal. Next time you fill up your gas tank, be careful. Back to you. You can tell its not nonvenom nous becauous because r and the head shape. How do you know that . I was a Boy Scout Camp<\/a> counselor, dont judge. Im giving the badges away for free. Here is the other thing, exxon, put a tiger in your tank. There you go. Shell, put a snake in your satchel. Sue, thank you. Things i never knew about you. And didnt want to and cant forget. Only one nonvenomous. The rest are diamond shaped. Here is how your money looks. Amd shares jumping. That hot new imac line. Following earnings, eps did beat but revenue fell short of estimates and Michaels Company<\/a> sinking. Same store stores fell 1. 2 . Courtney, what kind of reptile knowledge . Im afraid of alligators but i know how to get away from them. In hiohio why do you know th . We go on vacation in florida a lot. Grew up there as a family. When i run past bodies of water, i know exactly what to do. Just saying. Two automakers are holding meetings, gm and tesla. Phil lebeau monitoring both. Lets begin with gm. Reporter the Green Light Capital<\/a> proposal. Most believe it will not be approved by shareholders and thats what happened today. The proposal to split shares into stocks. Shareholders reelected all of the Board Members<\/a> not electing three candidates by Green Light Capital<\/a>. And even during the meeting itself whats going on with gm shares. It doesnt take a rocket sign ittist to figure out it has done nothing over the last five years and if you look at it has gone nowhere. The ceo was asked what she needs to do to get investors to appreciate the performance from General Motors<\/a>. I cant answer that question specifically. I can continue to make sure were demonstrate the Bright Future<\/a> with tremendous growth in an area that will drive profitability as well. I believe as we continue to take steps, well create more proof points and i believe it will turn. Reporter General Motors<\/a> is coming off two of its most profitable years ever. 2015 was its most profitable ever and yet the stock just sits there. What can we expect from teslas Shareholder Meeting<\/a> . A lot of excitement about what this company has to say. Reporter youre never sure what kind of questions will be asked. Theres always one or two way out in left field but in terms of the business the thing that will get a lot of attention is what he has to say when it comes to the model three. Production will begin in july. And then deliveries are sk scheduled to begin before the end of this year. Will we get an update in terms of production, expanding production in the plant. That will be the primary area of focus and that will get the most attention. Phil, thank you. How much could the stock rally from here . If it plays out it could reach 439 a share. Thats the upside from here. What im struggling with you still have a hold rating so how can we recognize the two . Fair question. Its a near term phenomenon. This has occurred from the high the high hundreds just six months ago and we think that can continue and we have major reservations around demand and profitability and that underpins the view. Expectations are very low right now. It sounds like youre saying the stock will lift and gravitate. It doesnt matter what they post, the earnings reports they put up. Thats what were saying. Weve been out talking about softening demand where we have a nice data point where they stopped growth, validating that thesis, the response we get from investors is we dont care. We want to see the model three. There was a midsized company, not the service. The Company Raised<\/a> rates by 30 because the cost of repairs tends to be higher. Is that a real threat or is it not going to matter . I dont think insurance rates are meaningful driver of demand and the current stock price. At some point theyre sensitive around those types of movements and paying more because of the kind of car you buy that should be a consideration at some level. Your cautious comments, your longterm view, brad, very fair comments. You say demand or the demand is plateauing at this point, that the answer lear business is solar. Is this a call where youre having it both ways. 24 upside. Im going to spend most of the report talking about the negatives and either way youre right. That is one way to characterize it. I think really again back to what underscores our more neglect it tiff view from where theyre trading longer term is if and when sentiment decides to actually shift more negative on the stock, bulls wont have a defense, right. That deserves a lower multiple and if profitability isnt there thats going to be too big of a risk in our view. You think its an escalator for the stock . It will be very challenging if we reach that inflection. Im certainly not suggesting itch the answers. A lot of people have tried to short the thing. Brad, thank you very much. The worlds biggest anticancer conference is wrapping up. A lot of news came out of it. However, which Companies Got<\/a> the biggest boost from it . We dont know. Meg tirrell does. Reporter yesterday we saw a lot of movers but were seeing some continuation with one stock moving today thats up for a second day, blue bird bio. Theyre working on a new form of immune therapy. You can see bluebird up about 10 that follows being up yesterday quite a bit as well. Now therapeutics isnt moving. We did see some data for parkinsons disease. That had driven the stock up yesterday. It is getting back some of the gains. Ive been asking around why thats happening, not hearing anything that would explain why theyre giving back. Were watching that one as well. Your attention to ptc therapeutics, a Company Working<\/a> on a drug for a rare genetic disease. That drug has had some trouble getting through the fda but there is word today that they will have an outside panel of advisers meet to discuss that drug in september. Back to you. Tirrell us more, because you always do. Safe travels. That was actually funny, brian. Actually funny, brian. On deck an rv maker named after a norse god making serious investor money. Today well tell you why and who, a low key story. First, speaking of norris gods, to Rick Santelli<\/a> for the bond report. Rick . Reporter if you look at a twoday chart of tens, its hard to imagine this morning we had the best read on job openings in the report, over 6 million. Never before in this series that dates back to 2000. Rates are at the lowest level on a closing basis basically since november. Election time last year. To the Foreign Exchange<\/a> sector, look at the palm versus the dollar, solid trade for the pound. The dollar yen is not as aggressive but still its holding in very strong so the dollar continues to be a dog on all cross trades. Dont change that channel. Power lunch will return. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. One stock motoring higher, thor. Landon dowdy is tracking it. Better than expected results last night, the rv manufacturer posting its best Third Quarter<\/a> ever thanks to motorized rvs. Who is buying . Executives should eat the growth to new consumers, entry level buyers and they say they have optimism and while demand is good it raises the question if the firms protection and the industry is up 160 since 2009 and is on pace to break last years record shipment numbers. How many rely on low Interest Rates<\/a> . Its a very Good Environment<\/a> for that. Thats why you see the millennials. They are buying the towables. Theyre cheaper. And its a great job story, too. Its a lot of percent are made in the United States<\/a>. Yes. Go to indiana thats where thor is. Massive labor shortage. In a lot of areas. Landon, thank you. Cnbcs the prophet is back. Trying to connect with the consumer. The business has been pulled under water, outdated designs and misguided processes. I know you have a tendency to try to mediate the situation and defend. You cant save them all the time. What are you afraid of . That something will go wrong. What do you think will go wrong . Theyre not perfect. They make a lot of mistakes. What do you think will go wrong . I dont want them to screw up so much and im afraid. Im afraid. Listen, listen. Im afraid. You dont understand. Im afraid. Dramatic. The prove it tonight at 10 00 p. M. Eastern time and pacific. No word yet on mountain. The 2017 iconic tour. A closer look at a startup success story. Kate . Reporter one of the startups is called jewel box, looking to inspirp the next generation in science, technology, engineering and math. Sarah and brooke wanted to change how young people think and play. If we could start early, its going to change the world. Reporter the cofounders of jewel bo it ts started selling their bracelets in 2016. They pair with their friends and can be coded to change chore. We uploaded the code to the jewelbo it t and it changed colors. When youre next to one of your friends it lights up. Reporter the idea was born out of an experience chipps had surrounded by male colleagues. I was five years into my career before i worked with another woman. It was another five years before i worked with another one. I really just always wanted to change that environment. Reporter the duo first launched on kick starter meeting their 30,000 goal in one day. They graduated from tech stars in december 2015 and began Retailing Online<\/a> on their own website and target. Com the following year raising 1. 3 million along the way. The hope is that more young girls will realize how fun coding can be. I think ultimately we dont want there to be a disparity between boys and girls in programming. We want just as many girls to program and get into the world of Computer Science<\/a> and make it their career and design the products of the future. Reporter they are working on placing jewelbots in Retail Stores<\/a> for the upcoming holiday season. Cnbc and ink magazine are bringing it all day tomorrow a. Great lineup of speakers, arianna huffington, bobby brown, so much more. If you cant make it in person check out cnbc. Com iconiclive. You can watch the entire live stream there. Back to you. Great stuff as always, kate. We look forward to it, thank you. Still ahead, the nba finals can draw a crowd. Last time ratings were this high, bill clinton was in the white house and Michael Jordan<\/a> was the main attraction. Next another basketball legend, mag Magic Johnson<\/a>, weighs in on the business, ratings, and even the president as well leave you with the worst song ever. Stick around. Opinion. Your opinion. A used car, the mwhat the. Turned. [ eerie music ] [ guitar plays ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ drum beats ] [ upbeat music ] she is real. The mummy. Rated pg13. Live sports again proving it can draw big crowd. This years wave clers warriors so far giving best ratings since mj. Watch it all closely. One of the gatest whos ever played the game, Magic Johnson<\/a> sitting down with jane wells. He weighed in on the business, ratings and much more. A good guy and, you know, was one of the most fun to ever watch, show time baby. We talked basketball, business and we talked donald trump as you say, so far the ratings for this finals are the highest in 19 years. Last night one of the greatest players and greatest coaches ever sat down and met in a special event with American Express<\/a> card members. Pat riley says Magic Johnson<\/a> is the greatest player hes ever seen and when i asked magic if the warriors were the greatest team he ever played, the man with the five rings said no yet. Right now winning one doesnt make you the best you have to win a few championships. Magic is also busy with his new job, running the Lakers Front Office<\/a> and partnering a billion Dollar Infrastructure Fund<\/a> hoping for deals in a Trump Administration<\/a> infrastructure bill which led to this. What do you think of President Trump<\/a> . What do i think of him . He has to find a way to bring everybody together and focus on the economy, putting people to work in our country, bringing people together in our country. The message is all over the place right, and so i would say he got to get some wins though. Hes got to get some wins, because the countrys sitting waiting on the president as well as his administration to provide us with how were going to change things and put people to work here in america. He promised a lot of things, so hes got to now deliver on those promises. You can see the entire interview right now on cnbc. Com in clutding whether he thinks the warriors cavs can match the lakers, celtics in terms of riflery. And racial tension in this country especially after Lebrons James<\/a> house was vandalized. Great job. I am curious what he had to say if you can give us a little teaser about the racial tensions still going on very much in this country even with someone as famous and well regarded as lebron james. What did Magic Johnson<\/a> have to say about that . He said, i mean here in la, he said i was surprised. Those were magics words, he said if it can happen to lebron it can happen to anybody. And it shows tensions are high and he says President Trump<\/a> has got to step up and say stop this. I think hes right too about basketball on a lighter note jean jane, because you look at the celtics back in the 60s they won eight in a row, still hes got to be impressed with the warriors. He said in this moment you cannot beat this team. Hes a huge lebron fan, he thinks hes the best ever played. He said theyve each won one championship. Magic went to the finals nine years out of 12, hes got five rings. Lets talk about jordan, hes got six out of seven. Right now the warriors in his opinion are unbeat bl. They joust got all the tools. I dont want to put you on the spot jane, did you ask about lon zoe ball, do you think the lakers are going to take the product . No we did not get into he said he knows what kind of players he wants, hes busy watching the finals instead of announcing them this year so he can learn what kind of team to build. He said fans in this town, who are not patient are going to be to be patient. And while the warriors are high all things come to an end and when they do the lakers will be ready. Thank you. Check out the rest on cnbc. Com. Theres one big winner that the ceo joins us. Plus would you buy prescription drugs from amazon. Well see what amazons move into they farm suittal busines. Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt thatight warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so youont need a cocoort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. At cwne plaza we know Business Travel<\/a> isnt just business. Theres this. a bit of this. Why not . Your hotel should ma it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. Hi item Courtney Reagan<\/a> heres whats on the menu today. Amazon looking to break up the multi billion dollar may pharma business. What would it do for prices. Stock is it 50 this year. The ceo joins us. Is the Supreme Court<\/a> turning the scc into a toothless tiger. Power lunch starts right now. Change by boy do we have movers in todays session, gold climbing to the highest level in search weeks. Dow falls to the low. Energy in the meantime and noble leading the gains there. Macys that stock is sinking as the Gross Margins<\/a> could be below average. Much more on that story straight ahead. President trump is going to meet with house and Senate Leadership<\/a> at the warehouse this afternoon. Sean spicer getting set to brief the press. Elon. The white house is trying to focus attention on this legislative agenda. The legislative director led out this time line to reporters. Healthcare wrapped up by june or july. Taxi reform by the fall. Now as you mentioned, trump will be meeting with the Republican Leadership<\/a> at the white house in just about an hour but even short is succeeding that the russian investigations are getting in the way of the administratives economic prosecutor. Tonight trump will have dinner with marco rubio owe and tom cotton. Theyll hear testimony from james comey on thursday. That hearing is beginning to suck up all the oxygen here in washington and were learning from the Washington Post<\/a> from bob costa President Trump<\/a> will be live tweeting during the testimony. Trump will deliver his own defense that die. Sean spicer will be briefing reporters in a few minutes and see if he with preview the president east message. Elon thank you. In the meantime, amazons looking to break into the pharmacy market. How big a threat could it be to the industry. Lets bring in david. Its good to see you. You found something pretty on if its surprising or not surprising but when you asked people if they would use the service. I think its very surprising. We asked people would you use amazon pharmacy. 54 of people in a National Poll<\/a> said they would. Do you have an understanding of whether or not that percentage how much prime overlaps with that cohurt . We dont know that. We know the democratic data, Older Americans<\/a> less likely to use it, younger americans absolutely. We want it to answer two things, first, would people use it and the answer is a resounding yes, and the second is what would be the impact. And what would be the impact . Most people like at this like oh what t drug prices we started to ask that questions of ceos e we went out to a few ceos and asked them what they thought, they said this is bad for generic pricing, they dont toe what theyre buying when they get a generic. Amazon could put a price, chose the local price and get the consumer. Why would a amazon price be different from cv skrks. If we had had cvs mailing me the drug one of the ceos i spoke to said oh gosh id use it because i get a prescription by my prk bm i dont know whens its coming i cant log in. Its a lot easier to use the interface. And those three things that you mentioned if i buy a toy from amazon, drugs are probably going through a pbm are they not, so the model is less amazon bl perhaps. That was sort of the point of my question . Maybe. The first part you didnt say less amazon bl. Thats true i avoided that. I will be trademarking that right now. The first question is do they want to do this. In they want to they can buy a pbm, or buy a National Chain<\/a> mail order pharmacy. I spoke to an internet analyst wobs if they wanted to lose a couple billion dollars a year to get into this theyre of the scale they can do this. Some analyst put out a note say yeah, acquisitions would be easy. I dont see pbm moving that much. Buildings pretty easy too everyone says its difficult. Its difficult if you and i fda, regulation, the regulatory frame work you can just start a pbm . No. Those are money challenges, those are things like i cant hire the talent. If you were working on pbm and you got something i think you jump at that chance. So the bottom line is it is a risk to the pbms . I dont cover that sector, a risks to the generic pricing, absolutely. I dont see how its good news for them. David thank you. Deidra, she has a news alert on google. Whats going on now . We been anticipating this report to Company Culture<\/a> for a while now. There seems to be two going on, an internal report and of course the independent holder report. Today we knew ubers conducted an allhands meeting. Reports are studying that uber employees are leaking some of those changes, there have been at least 20 terminations we believe as a result of this internal investigation, this is according to reports. We are still awaiting this in dependent holder report, its being led by the former rg holder. That was suppose to come out today or yesterday but were hearing it has been delayed. But so far the changes are yurnd way at this company that has been plagued by multiple crises since the beginning of this year. From these leaked sources, 20 terminations have happened as a result. Well update you when we have more, were awaiting comment from the company as well. Any order or idea as to how high in terms of the structure the 20, fired people go . We dont know yet melissa. Were look at some names in the company, very high up executive names that could be on the chopping board just because of their previous dealings and vochlts and crises and controversies at the company. Right now we dont know who these employees are and what levels they come from. Its hard to know how many employees they have because they are private. Capital iq list about 6700 employees but i dont know if that counts the driver. We dont know how many of these are in the headquarters. Any idea how big the nondriver staff is at all . Well, we know it has been growing very very quickly, that 6700 number seems very low to me. In San Francisco<\/a> it would be at least that i believe. Drivers certainly are another matter. There are many many, they wouldnt be affected by these changers. Uber has been trying to keep drivers on for longer. In terms of employees well get back to you on that. They do have a number out there at least an proximate one. There is massive changes going on. 20 employees isnt a lot but it depends on who they are and what level they are. Were waiting for that report into uber. We dont have any idea when thats going to be coming deidra . It was supposed to be monday or tuesday thats what we were told. There has been reports that it has been delayed, were still told it could be this week. Were awaiting that and looking for more detail. Remember, this what we are getting right noe from these multiple reports 20 employees have been terminated. This may employ from the internal investigation, if so looked like uber is acting ahead of that pending report. So certainly there could be many more changes on the way. I cant i cant think melissa, courtney or deidra of a company thats had so Much Negative<\/a> news flow in a short window of time, i wonder deidra is there any indication that this has hurt their business . Maybe we should ask the audience. Is there any indication people are saying you know what, i dont like uber the company, im going to use lift, or via or get or one of the companies. Certainly you do hear evidence about that especially with the delete Uber Campaign<\/a> earlier this year. We look at credit card trans actions to see how much ubers pulling in versus lift. They calculate differently but what this tells us is it doesnt hit ubers business in a big way. Just about a week ago it shows us while uber continues to lose a lot of money its losing money less quickly and it is growing its revenue. So why this is a lot of bad press for uber and the ways it could reflect the company like things like he hasnt found that yet and you have to wonder why theyre all at these crises are hindering that. Thank you very much deidra appreciate it. Three big stories in retail, macys investor stepping down and amazon discounting prime. Lets start with macys because that stock is down more than 7 . The retailer lowering its growth margin forecast after deeper results plan to clear some holiday merchandise. Macys also sell beauty bruks and watches which are selling at a lower profit. Jan, i listened in it was 2. 5 hours or so when we were taken through the north strategy that macys was going through. What i thought was interesting was his discussion about pricing. He said look, macys is going to continue to be a punishment we havent gotten credit for our good prices. What do you think of that . I think hes right. Thats going to help us get more business in the story, drive more traffic, itll help us set a price and then we can also talk to the customer better because theyre doing a lot more digital,less imprint and they want to convince the customer that what youre getting here is a deal. They dont want the deal to be so egregious where the venders hate it. I thought everything they said was extremely convincing and positive except for the current gross margin problem and thats all youre seeing in the stock price. I think Everything Else<\/a> everybody heard at that meeting they took as a positive. Theyre going to be doing retail 101 better than they were. They got strategies that sound like theyll work. Theyll going to be able to drive business back stalk. Once you say gee, were changing or guidance on Gross Margins<\/a> thats going to be a big problem. If theyre saying Gross Margins<\/a> are going to be lower and lower are they anticipating theyre going to about b able to make it up on volume. Somethings got to give right . They basically told us business will get better ever quarter of year this year and it will get better on traffic and on profitability. Theyre basically saying, yes, were going to be doing things that work. Quickly before we move on, the stock is down 38 this year. There was talk months ago that suters may be interested. Do you think this make it is company a likely take over company this stock decline, or are things bad enough where potential buyers are like, nope thats not what i want . No i dont believe that. If youre down 7 today, youre 7 more interesting than you were yesterday. If youre down 38 because the real estate value hasnt changed at all. We also saw big changes with jay crew. Still own 10 and the retailer has been running the retail for a while now. Jay crew is not what it use to be unfortunately, they got out in front of their squeeze when it comes to the pricing and now theyve got a lot of debt. Theyve been taking on the debt because of the way theyre structured in this buyout. What kind of channllenge does j have here . I look but he hasnt you get my point. What are we going to do with jay crew to make this work. The prices are tougher, theyre highly levered. Theres nothing there that i see them doing that micky count be doing. In my opinion they forget their customer. Jay crew use to be preppy with a little bit of the barn jacket and now theyve gotten killed the barn jacket. Barn jackets are for from 20 years ago. Im from 20 years ago. You goat me hold on let me ask a quest n question you dont laugh. I think its something that you get my point. They did it. Im going to bring my barn jacket in tomorrow. Jenna lions was really the one that was driving that and she she got booted. While they were able to perhaps bring in some new customers, some of fashion that they introduced cost them more to make and these prices went higher and higher. They just didnt catch on. And i dont think theres a reason for it to catch on because right now were looking at fast fashion, were looking at price, plenty of competition, what is it that jay crew brings to that party . I dont see it. Theres nothing there there. Right. Were going to keep watching barn jacket get out of here. Amazon is offering discount for multi prime membership for those on food stamps. 27 per year versus 99 for the full year prime amazon price. Okay jan, is this a direct hit at walmart . Is that what amazons doing here . I was shock shocked to find out they were going to discount prime. Its a direct shot at walmart. Walmarts been pushing them right along theyve been cheaper on delivery. Theyre doing all the thing to bring that customer in. Amazon goes, wait a minute thats my customer. We need them here because we got all the customers. They got 99 in the prime now and want everybody on it. So yeah theyre going to do what ever they have to do to bring that in. Im not surprised at all discounting prime memberships. 72 is still not nothing for a lot of folks. I have the same question, im not sure if thats going to bring that customer in versus walmart. But you also get the streaming and for the Household Spending<\/a> money on streaming you can stream on. But whats the down side. Somebody wrote in, he still got his barn jacket but you got to be 65 ff and way 180 pounds to where their stuff. I agree. This skinny stuff has to go. Have you gone around america lately, the super skinny thing. Stop. Nothing wrong with being husky. Im going to leave the husky comments to brian. Thank you jan. Heres whats coming up on power lunch well talk to a ceo stand to gain big time from the gold push. Recovering money to repay investor and it was unanimous why. Well explain. All that coming up on power lunch. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. The mwhat the. Turned. [ eerie music ] [ guitar plays ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ music abruptly ends ] [ alarm beeping ] [ guitar plays again ] [ drum beats ] [ upbeat music ] she is real. The mummy. Rated pg13. Apple still dominating the conversation after the Worldwide Developers<\/a> conference yesterday among the upgrades with many products and Smart Speaker<\/a> the home pod, the Company Updated<\/a> its product which sent one stock higher yesterday. The watch will include a blue tooth functionality. Apple highlighted specifically the decks conn Glucose Monitoring<\/a> system which would send glucose information directly to the watch. Lets bring in the ceo of decks conn, kevin sayer. Good to have you with us. You had a conversation with apple before, can you explain whats new . Certainly, right now our continuous glue coast Monitoring System<\/a> transmit a blue tooth system thats picked up by the iphone so patients with view their information on the iphone and it can be shared with others. Right now the way the watch works with our system the iphone can send a signal to the watch through an iphone on the watch and it can be himmiced there. What the iphone does designed this transmitter to be able to communicate with two devices at the same time. So our transmitter can go directly to the watch. If youre a runner and want to go on a run and need to monitor your glucose values while youre doing intense exercise, you can leave your phone home and see the values on the watch and have that information while your train. In a business meeting same thing, if someone doesnt want their phone but need to check their glucose values they can look at that watch and get the answer. So basically, currently most people who use the watch need the phone but this circumvents for those instances where you dont want to carry your phone but you have your watch and you still need to be on top of your glucose levels. It makes this more accessible. The more accessible the information is the healthier they are, and the better their diabetes are control. Why apple and not fidbit or could other partnerships in the future be in the works . Weve had partnerships with several entities over a number of years, for example our data has been displayed on insulin pumps manufactured by others. Our first pass with the iphone and with the io s system was because its very advanced and very secure. Apple has been wonderful to work with as far as the developing efforts and getting there. And our company has grown 50 a year over the past several years, taking on apple as the first project made a lot of sense to us. Well have other platforms but apple is our core place where our datas villagealized are you getting a sense that more customers are buying your monitors because you know what, hey i can use an apple watch with it and thats pretty convenient . I think other time that will get her patients to use our system. Convenience lead to Better Outcomes<\/a> and we want the patients to make that decision because of that absolutely. A positive response from the Doctor Community<\/a> . Kevin are you getting a big response from the community of physicians . The physicians like it. For the watch they havent picked up on the watch angle because that came out yesterday, but weve had positive responses from physicians with our apple relationship. Not only with the data displayed on the phone but we have teaches in features in our operating system whereby that data can be shared with others. For our population kids with k go to school and the parents with see the data at home while theyre in class or on the playground and may need to intervene if something negative is happening. So physicians have been very helpful and adopted our Wireless Connect<\/a> tifts and visual outcomes. Thank you kevin for joining us. A ruling coming down from the Supreme Court<\/a> that could have major implications on wall street. Plus two companies that has nothing in common except the great couch and theyre both in street talk. The Supreme Court<\/a> ruling against the scc liming its power to crawl back illegal profits in firms. The court found out are subject to a five year statute of limitations. How might this impact wall street. Joining us is mark powers. Guys thank you very much for joining us. Jake, why do you disagree with this decision . This decision is a disaster for investors who are victims of fraud and schemes like madoff. The message is court is sending is duck the scc for five years, youre out in the clear, you can keep your ill gotten gains. Its bad policy and bad law. Mark, you agree with the decision, why . Well, first of all, you know lets keep in mind the scc goes for which is what this case deals with. It really is saying youre going to return money that somehow. The money that jake was dissuggesting that would not be valuable for the victims is not the case. A lot of times in many many cases that money goes into u. S. Treasure. The reason why i totally agree with this decision and why im glad the Supreme Court<\/a> has reigned in the scc for five years now and for the second time, we need to get the s c c bring cases seener. They need to bring cases where people can sleep at night after a period of time and feel the government is not coming after them 20 years later. This case that was brought was activity going all the way back to 1997 and it wouldnt brought until 2009. There should be some obligation on the goth to bring cases quickly. Le wants people like madoff to be able to sleep at night. What these guys do is it take years to hide the fraud. Madoff, people like that are very good at hiding the money and disguising the fraud. The Trump Administration<\/a> has gutted the scc, they are fewer attorneys, fewer resources, theyre not going to be able to catch any of this. This is a decision helping the bad guys, something has to change, somebodys has to look out for investors, its wrong and should be reversed. Mark . Thats just not the case at all. Im a former scc enforcement attorney so i have nothing but respect for that organization and i care about going after wrong doers. But at the same time, even justice sew toe mayor would consider even wrong doers can sleep at night and their sins have been forgotten. The remedy the scc is creating and seeking is something in the form of a penalty. And the statute thats on the books for two centuries says the government may not go after people for fines. Its not about hurting investors its about doing the right thing and just for the government and what so okay hey guys you both made your points. Jake id like you to bring this back to your audience, people that are not scc attorneys, why do they care . How might this impact the cnbc viewer . Right now a cnbc viewer can be a victim of fraud by a corporation that could be in a stock where theres a fraud. We could only go back five years, they could have a financial adviser, many of people that come to me have Financial Advisers<\/a> hiding, stealing and putting things in an outside account. People have to look at their monthly statement, if they see theres a problem call an attorney. After five years their off the hook, you cant go after these people its really a bad decision. Thats not at all what the Supreme Court<\/a> decision is finding. The Supreme Court<\/a> decision is limited to cases by the s c c or government itself. It has no affect upon class actions, it has no affect upon private Party Plaintiff<\/a> lawsuit such as the people that jake generally represents. Guys this is what lawyers do. It was a very polite, wellgrounded disagreement. We need more of this in the country. You guys were very polite to each other we appreciate that jake and mark thank you guys. Four big analyst posted what you feed to know about. Street talk on deck coming up next. I joined the army in july of 98. I did active duty 11 years. And two in the reserves. Our 18 year old was in an accident. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. It actually helped to know that somebody else cared and wanted make sure that i was okay. That was really great. Were the rivera family, and we will be with usaa for life. Usaa. We know what it means to serve. Call today to talk about your insurance needs. I cant wait for her to have that College Experience<\/a> that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise hi everybody im sue herrera heres your cnbc news update at this hour. The Trump Administration<\/a> is calling for reform on the u. N. Human rights counsel to eliminate what it calls chronic antiisrael buyers. Nikki haley passed along the address during her visit to geneva. Its hard to help this council has never considered on venezuela and it adopted five bias israel. It is essential that this counsel address its chronic antiisrael bias if it is to have any credibility. Here at home, the cdc is calling attention to some troubling problems in the healthcare facility. 16 reported healthcare associated of a disease. One quarter of people who are infected in a healthcare facility died from the disease. On a much happier note, george and annual clooney are the parents of twin. The twins were welcomed this morning in the hospital they were happy healthy and doing fine. No pictures of babies yet. Thats the news update at this hour, courtney back to you. Shoots i was hoping they had yeah the publy cyst hasnt released it yet. Now on the kayla. Hay courtney. A few minutes ago we saw a News Conference<\/a> between circumstance of commerce wilbur ross announcing deals have been reaches over a year of talks of sugar. There are various terms of the deal that was hammer out until the last minute. It deals with price, the purity of the sugar whether its raw or refined, the share ochoa of the countries are allowed to trade back and forth. Its a complicated deal but its symbolic in the fact its seen as a precurser as two countries move to nasa over the last several months. Guys. All right kayla brings us that breaking news. Thank you very much. Time for street talk, the daily dose of stock opportunity. Raising the price target on netflix. Goes from 190 to 165. The analyst reiterating the range with the Higher International<\/a> stringer. The domestic broad band penetration in the u. S. Is slower International Penetration<\/a> is still less than 6 and that suggested a long run way for growth. Stock two is hard hormel. The city analyst has hormel has the least amount of exposure. Its called a pioneer in protein based food. They got a 38 target, 10 upside by hey its spam. Third stock uber, the cancer conference, this was mentioned. The drug is bb 12121, 15 patients treated with the drug and reported a study, 3 fourrti of those had a positive response. Your final stock, this one is possession car, 22 billion truck maker. A bost from 75 to 66. Expect earnings on the up side of the next year. The truck aids are up 20 of the year. Truck markets are stabilizing. 75 target on pa car. Pcar on the up side. We had a yesterday or friday . No it wasnt friday because i wasnt here. Was it yesterday . I believe so. In the past month the dows has had a slow and steady climb by gold is up. Why is money moving up for gold and what it means to the market. Coming up on trading nation. Trading nation today lets trade gold. Rising to its highest level since election night. Rich, chart it for us. Do you think gold is going higher or lower . Looks like its going higher. Keep in mind 12 year to date, down 12 versus year to date and when you pull up the chart it suggests yields goes lower. Thats bullish, the 15 crossing back above the 200. That sets us up for higher levels. One is that head and shoulders bottom, leaning to the right, but can be equally as effective to the upside. We see the nice bullish semi century with the set up last year. We bought it in december, a pull back in may then a strong move through may through the fourth of july. Id like gold to move higher here. Matt do you agree with that bullish degree on gold . I do. Weve made a series of higher highs and lower lows. If we can break out and indeed make another higher high that should shoot us a lot higher. Two of the reasons i look for this is the sentiment and positionally hasnt gotten extreme yet. We have sentiment among future traders up to 71 bullishness in gold. More importantly, you look at the cot data, the cot of traders data it shows the speck later that are usually wrong, the positions are nowhere near where they were last summer when gold made a top and rolled over and fell down 17 . In fact its bmw 60 lower. If we breakthrough this 100 level i think 75 is a goat target here as rich said, as we get into the july time frame because thats the high from last year. The alltime high is from 2011. Double bullish view on bold. Matt and rich thank you very much. For more trading nation go to our website, tradingnation. Cncb. Com. Which invest for your stocks the answer might surprise you. Power lunch will be right back. Hi im joan lunden. The kind of stocks the company owns is depend on how it uses the mark. Erick joins us to explain the fundamentals and the quads and what they own. Are there certain stocks that quad favor more than fundamental shocks and vice versa. The information was surprising. Consider the names like visa, master cards, facebook, price line and starbucks, those stocks are to be owned by fundamentally driven managers with no love from quad shops. Lets look at it the other are quad funds relatively speaking, what stands out here, quant funds are not drawn to big brand. They stick to the smaller firms instead. And while they focus on the stocks that fit your computer models, experts think managers have to convince clients with a good story and owning top sectors like facebook is an easy conversation to have. Down to the tax, which one performs better . So far this year, weve seen the fundamental guys outperform the quant funds. They churn twice as fast. Right. In and out quicker. Interesting, thank you very much. You got it. And so what is the better approach for you being at home . What stocks do you get there . So whats your opinion . You heard erics thesis based on data. Whats better, quant fundamental in. Rage against the machine because were fundamental investors, and what happened with the quant deal, it was thee sexy trade right after the rack because analysts, strategists, managers, economists all lost faith in analysts on wall street because of the lofty projections, and what happens is we start making our own models and looking at growth things, remember, and then quant became the rage. We didnt want to be wrong, we wanted to be right. They underperformed last year because it was about being in the right fundamentals going forward. Thats why they underperformed this year. You have to look at longer term time frames. I believe earnings and fundamentals drive stocks longer term. Whats going on now in the market . Granted, we dont have a lot of action today in equities, slightly lower, but weve been strong, the dow up 7 this year, but we know folks buy bonds because yields fall. Whats going on there . Nothing. Theres nothing going on in the market. I mean, markets have flattened out hey, hanks. I know you have to create buzz every day, but the market is finding the zone where theres not a lot of going on. Theres no leadership. Everyone is convinced that we are in a Growth Market<\/a> against we buy the same stocks, apple, google, facebook buying stocks, bonds, and gold . No convection in the market place, zero. Thats right at the macro level, but i disagree about no leadership. Isnt the problem, as i theres too much narrow leadership . Six stocks that run the whole thing. Call it very con finded leadership in the overall markets, so, for instance make you nervous . Very. What if facebook, google, amazon rolls over, what if quants are overvalued. Rage against the machine, right . Do the work. We wrote a piece on Consumer Discretionary<\/a> last week talking about that amazon is 400 basis points of the entire performance of the Consumer Discretionary<\/a> sector. Take amazon out, its under performing the market. Thats important. Literally, amazon itself has made an entire Consumer Discretionary<\/a> sector look like its doing better than it is . Year to date, up 7 , but xamazon, its another story. Correct. Thats what im talking about. Its skewed. Distorts. Thats why, again, you have to rage against the machine and do the work and do analysis. Do a deeper sector and stocks you want to own, and when the market gives you the opportunity to buy them cheaper, buy them. At these levels, concentrated performance in the facebook machine and google machine and apple machine, you take a little off the table and try to find areas that we think longer term are the place to be, which are more economically sensitive, more towards american and north america leading the way. The faangs of the world, theseidiosyncratic. Its going to grow. They are insulated more than, say, i dont know some industrials. I know. Just think about what you said. Isnt that scary . Why . Thats defensive, names are more defensive. Meaning our argument its a great its a great point, but our argument is these stocks are not tech stocks, but consumer staple stocks, right . Right. Theres a bid for defensive names in the market. Like costco, really not a staple, but a resource, whatever, but we need the names that are going to be kind of bullet proof, and people are so convinced these socks are the place to be. That makes me nervous short term. Longer term, no denying. We want our investors to have exposure to the names. Just think its a little overdone with everybody loving these stocks. Like my worry is the quants bring us up, theyll bring us down. Exactly right. Very interesting. Thank you so much, brian. Thank you. Thank you for joining us here today. That was definitely terrifying. Serious stuff. Check please is next. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement<\/a> Insurance Plan<\/a> whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement<\/a> Insurance Plan<\/a>, insured by unitedhealthcare Insurance Company<\/a>. Medicare doesnt cover everything. And like all standardized Medicare Supplement<\/a> Insurance Plan<\/a>s, these help cover some of what medicare doesnt pay. So dont wait. Call now to request your free decision guide. It could help you find the aarp Medicare Supplement<\/a> plan that works for you. These types of plans have no networks, so you get to choose any doctor who accepts medicare patients. Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. White House Press Secretary<\/a> spicer holding the Daily Briefing<\/a> now, and moments ago, eamon asked what the president is doing thursday during former fbi directors testimony. A reference to the report that the president is live tweeting during the testimony. Can you tell us where the president s going to be and what east doing thursday at 10 00 a. M. . Is he going to watch former director comeys testimony up on capitol hill . The president s got a full day on thursday. Theres an infrastructure meeting with mayors and governors to talk about what we just some of the projects, Publicprivate Partnership<\/a> i discussed, giving a speech midday to the faith and Freedom Coalition<\/a> downtown. Theres going to be a very busy day as all the days are. Look, as i just said, president s going to have a very, very busy day, as he does all the time, focus is pursuing the agenda and priorities he was elected to do. Was that a yes he would be tweeting . Left the door open, hes busy no way hes not in my personal opinion. Well watch carefully. You ignore them and move on. Exactly. Take the high road. As for check please, im watching bitcoin, a new high today, billionaire investor mark cuban said its not a bubble. Levels backed off a touch, but this is an under the radar play, the chip maker, amd, the cards are x500 series can be used to mine bitcoins. Theres a pop on that in addition to news yesterday the processor is the new line of apple imacs. Watch that. Analyst meeting held in four years, question about amazon, macys ceo saying, look, macys and amazon can coexist. A serious note on facebook, you know, 6 Million People<\/a> felony convictions in the country, wonder where theres not job growth . Make it ease year for people to get jobs. Did something 20 years ago, served the time, you should be able to go back to work. Thank you for watching. Closing bell starts right now. Hi, everybody, welcome to closing bell. Im kelly evans at the new york stock exchange. Im bill griffeth. Ceo confidence hit the highest level in three years. Hopes for the president s progrowth agenda still high, details of the new survey from the business round table coming up in a little bit here. Its really bitcoins and bonds, i mean, those are the two big stories in the market today. Well have more on that later. Both rallying, by the w","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia804601.us.archive.org\/30\/items\/CNBC_20170606_170000_Power_Lunch\/CNBC_20170606_170000_Power_Lunch.thumbs\/CNBC_20170606_170000_Power_Lunch_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240628T12:35:10+00:00"}