Lunch begins right now. Im melissa lee coming to you from miami it is the tech event of the americas with us on the show today forget walking into a bank, this company is completely disrupting the way consumers now get loans, instant loans. The ceo of green sky is with us. Plus our exclusive with the ceo of sprint. Well weigh in on merger speculation with tmobile. And personal final guru suze orman will be along as well. Lets take a look at the markets this hour. The nasdaq continues to be the story today. Right now the techheavy index is down about a full percent doing the worst of all three major averages apple is a big reason why. The biggest, down more than a percent more than the next weakest sfok, united health. The stock getting another downgrade today, the second in a week for unh netflix, microsoft among the big tech laggards on the day ge investors making more than 3. 5 today this, of course, after Ceo Jeff Immelt announced he will be stepping down after 16 years at the helm brian . Sara, good to see you money is flowing out of technology you know that just by looking at our brightly colored screen where is that money going to now . Dominic chu knows the answer and hes here. The oneweek performance, you are seeing a rotation. Were not going to call it a great one because its subtle. Take a look at this because over the last week the bank stocks, the beaten up financials are up 3 one of the real bright spots in one week also Energy Stocks we know how badly its been for them 2 upside there and its coming out of, as sara and brian mentioned, two of the hardest hit sectors out of here into the underperformers over the course of the past week the outperformance of the s p 500 and technology, well, it has been technology all year so far but take a look at the big drop on the righthand side we he are seeing real weakness on a relative basis. Well see if that trend continues. The deeper discounts, take a look at some of these stocks they are well below their 52week high thats bear market so, guys, brian, the technology secotor right now about 16 or 17 of them already so far in correction territory you do know the answer, dom chu always money big money advice on what is best for your investments now joining us are robert and nancy with Heartland Financial bob, i know we have talked many times in the past, you have been a big fan of amazon. Youve seen whats happened. Two ways to look at it number one, amazons run is done youre going to sell or you still like it and, therefore, its cheaper and youre going to buy more which one might it be . I think you have to buy more. I dont necessarily think you have to be a buyer today, but i think you have to wait for this sort of shortterm correction to play out i think what you saw is a lot of folks sort of heading for the door once you start to see big money moving to the door, a lot of investors, a lot of selfdirected investors also move in that direction and you get this herd mentality. Amazon is an expensive stock, no doubt about it it always has been. No doubt about it. Sara and i, the same amazon valuation discussion the last 12 years. You called it a mini shortterm correction why are you so confident it is a mini shortterm correction and not something bigger i think it goes even to the government a lot of people were expecting the growth agenda to actually catch a little bit of traction this year. We havent seen anything of it weve seen the comey, the flynn, the concerns about the trump talking to various people and i think the market is going to come back to growth. I think youre going to see an economy thats just barely moving forward people will look for growth in their portfolio and i think these names represent it amazon definitely represents growth so i think once you start to see a clearing out of the weaker hand you start to see people moving back into these names nancy, sit tight. Well come back. We have breaking news out of washington, d. C. , with hampton pearson. Hampton . Reporter brian, the u. S. Appeals court in San Francisco has upheld in large part the ruling that blocked the trump revised executive order restricting travel from six muslim majority countries. This, of course, was the review of the ruling from the hawaiibased federal judge that blocked part of the trump order basically claimed it halted the entry of people from six muslim majority nations and refugees so now the ninth circuit weighed in supporting essentially holding off on that ban. It is expected perhaps at some point that the u. S. Supreme court is going to ultimately have to settle the whole question back to you. The legal fight will continue hampton pearson, thank you with us now were having a conversation about the markets with bob and nancy nancy from Heartland Financial, youve liked these big cap tech names. I think you like alphabet, facebook and microsoft so are you going through some of the wreckage over the last two sessions or too early within just two days to try to figure out whether its a buying opportunity . Well, thanks, sara. We are valuation driven, and i have been on talking about Large Cap Technology for the last year recently saying we are selling our apple to buy more facebook and so if you look at where we are today in valuations compared to 2000 were nowhere near the lofty levels that we saw back then and i lived through that period or barely lived through it but in addition i was recent ly at the bernstein strategic conference every ceo from Consumer Staples, discretionary, Industrial Supply chain, energy, were talking about technology as the way they were going to improve march gyps and intrees productivity so if we arent going to get help from washington the solution for gdp growth is technology we like harris corp, texas instruments. We do still like facebook and microsoft. On some pullback i would be happy to buy back some of the apple weve been selling bob, i wanted to ask you about ge, obviously in the news. You have been an owner of this stock. How unhappy of a shareholder have you been and how much does todays new decision, new announcement of the ceo change that if at all its funny because over the last few weeks weve been talking about it in our investment meetings. Weve been sticking with it because it is a core name. We do believe in the portfolio that they have it will bring in some change but we realize its going to take some time. The dividend you are pretty happy with but the overall performance and your total return has been down i think its going to take some time and i think youre going to probably have to wait until the middle to late next year before you see real changes start to come through i dont think you want to be a buyer of it here i think you have some time back to the growth names, it technology continues to power us forward. I think also the Specialty Retail eers, fames like ulta, starbucks. Louie will come on probably in about a week or two and will be say iing the same thing, youre going to be profiting long term. By ulta and i think youll be okay nancy, a final quick comment. It is spring its the season of love. Whats the stock that youre in love with now . That one threw me, brian. Thats my job weve been adding to stocks like home depot and ve at that on the payment side and we still like the Health Care Space though we recognize it will be volatile were investors not traders. I agree growth will continue i believe it will be growth at a reasonable price the world according to gart home depot and visa. We love having you on. Now to melissa lee who somehow found her way to miami today i know. I drew the short straw, didnt i, brian the tech teselloff we maysee head winds for the Broader Markets. Chief investment strategist at deutsch Asset Management david, great to have you with us the selloff weve seen fit into your thesis we will see a summer pullback we do expect a summer pullback but we dont expect it to stay down for long. We think technology is a pause that refreshes the valuations that got high, fundamentals are strong we have Market Expansion most of the big cap tech names took the option expenses into the nongap results, really good quality of earnings. We like tech we have been pointing out that we want to be cautious in the summer moving from tech to health care as a preferred growth play but we are still steering clear of value. Were very cautious on energy, industrials, and cautious on small cap for the summer part of your thesis, david, is that were not going to see any sort of tax reform until after the august recess and, therefore, you see the summer swoon but also valuations in the overall markets are challenging right now. Are there pockets you see challenging because a the lot of people might have said it is one area that had run up too far too fast and what sectors in terms of valuation are challenging right now . We expect it in future years, a long lasting cycle i think what you can say is true for tech valuations have gotten demanding but were not alarmed about it and now were in a seasonal period where people are looking to evaluate what the year end upside s. In order for there to be attractive year end upside we need a little bit of a pullback particularly until we see a clear plan for the Corporate Tax cut. Were not the going to see that until after the august recess. So we think the summer is a time for the market to cool down, consolidate, maybe some of the highflying on the chin. We think they come back strong and importantly rather than debating just exactly what tech does on every wiggle, we think health care is the opportunity here and we have taken some more cash weve raised cash because we think we havent seen the full bottom for the summer. So there could be more than a 5 pullback, is that what youre saying were expecting the overall s p to have a 5 , at least, pullback from the highs at least. We expect that. I dont expect tech to go down much further from where we are now. The real risk still sits energy, industrials, small caps, and i like financials for june we have the fed this week. The it tenyear treasury yield going down we expect to see it lead to dividend hikes the point here is dont back up the truck on value stocks. Financials, energy industrials, small caps they have yet to bottom. Got it. David, appreciate the time melissa, news alert in the bond market. Tenyear notes are up for auction. Rick san ttelli at the cme what does demand look like, rick reporter it wasnt as good as the three year. Yes, this is a doubleheader today due to the fact the fed most likely will raise rates wednesday. We have 20 billion nine year 11 month. We reopened them the grade was a c, to answer sara directly, an average grade. As you look at the chart hopefully youll see rates dropped after the good three year, rising after the not as good ten year. Lets go through the internals the yield 2. 195. Bid side on the wi so you can see it priced out of the box. 2. 54 bid to cover. That was pretty good, 66. 1 indirects wasnt bad, above average. 5. 3 on directs a little light. It gets a c and tomorrow, of course, we will finish 56 billion in supply with 30year bonds. 12 billion to be exact. Sara, back to you. That twoday fed meeting. Rick, thank you. General electric Ceo Jeff Immelt stepping down after 16 years at the helm a look at the company under his reign and what the company could become without him first, yuber is lucky its not a Public Company otherwise its stock would be down 90 according to our next guest. Where he thinks that 70 billion company goes from here coming up when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. I did active duty 11 years. My in july of 98. 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. With Everything Else going on, bitcoin one of the most highly traded assets down more than 10 right now i know youre the currency expert you go to some of the bitcoin exchanges i think its asset class they have it down as much as 13 . Thats after it crossed over 3,000 for the First Time Ever yesterday and outperformed almost any other asset that you look at so far this year stocks, bonds, dollar, commodities dont pile on because its been so good this is probably healthy and expected impossible to tell what the valuation is its an alternative sort of technology, a block chain where tech investors expressed in it like fidelity, the japanese government giving a signoff. Theres a lot of demand coming from overseas. Plenty of reason it could go up. Its highly speculative. Theres the bitcoin. I heard about that on wide World Exchange which you watch every morning. You know i didnt do it this morning so i could be fresh for you today. Major shakeup at uber chief Business Officer michael is out on the alleged Sexual Harassment our deirdre bosa is live the management crisis gets worse and worse. Reporter it continues, sara. The next big question is whether the ceo himself takes a threemonth leave of absence emil michael was the righthand man and ubers chief deal maker. Now hes the highest profile exit so far. He announce d his departure in a internal memo to his team saying yesterday was his last day and, quote, it has truly been the experience of the Fastest Growing company of all time. He has played a crucial role in growth he brought if major funding that helped reach the valuation he has also been attached to some of the startups biggest controversies and many wondered leading up to this point if he could survive that holder report now were waiting to hear if he takes a leave of absence and if he does there are very few people who could step in remember that its not just michael, the 20 plus employees fired because of the internal investigation, these are just some of the other names that have left. This exodus has been going on for months, guys, and there could be even more to leave tomorrow once that holder report is made public all right, deirdre, thank you very much. Uber is lucky they have not gone public yet because if they did their stock would probably be dropping like a rock on the recent run of bad headlines. Lets bring in the professor of engineering. Professor, listen, they are not public but a lot of our viewers may not know they do get valued, fidelity and others will mark up or mark down their internal valuation certificates, the last time this was noted by the journal uber had a valuation of 68 billion making it the most valuable startup in the world. Do you expect the next time we see these markups uber will be marked down . It depends on who they bring in to lead the company travis has to go he represents everything bad about Silicon Valley the ford ceo, they had need to get someone who has experience who can be customer centric and really transform the company at this stage of the company they need an adult running it not the spoiled brats who have been running it so far if they did that, the value could be high again. Its happening at every level of management, the company will be worth less and less. I said as much as 90 less, i made that number up. The value is declining because of all of the changes. Can i hear your point you get these 20yearolds who start companies. Despite all the missteps, the headlines, all the controversy, did indeed build the private company valuation. It does remind me of google. You remember they said they needed a, quote, adult to run the company as well. Is there any analogy here . Well, they brought eric schmidt in and eric did wonders for the company and now they have other very Senior Executives running google. Companies have to bring in experienced management that you can have spoiled brats building the first level of technology. Once you get your point you need professional management in there. Thats why i said we need names like mark field, jeff immelt or from ge. We need people who run billion dollar businesses and who can have the customer focus, transform the company. Jeff immelt just left as ceo because his stock underperformed during his whole tenure and was the worst performing member. On the valuation, the latest financials that uber put out in the first quarter, revenues grew 18 and losses are narrowing so clearly theres a management issue but why such a sharp markdown if the financials are Getting Better and its unclear what the impact is on consumers who use it well, because almost every layer of management has been guted now right to the top the company may not even have a ceo tomorrow if everything goes the way it should go youve had such turmoil over there, such a shakeup that theres no one in charge of the company right now. They have to get over all of this they have to bring the right people in. What they did in bringing in hold er and huffington and so o was very wide. Now they need adults to lead the company. Thats what will save the value of uber. Well see what that holder report shows theyre set to release it to employees tomorrow nice to see you. Thank you for weighing in. They dont have a ceo, maybe a coo, a cfo, a cmo a Senior Vice President of engineering. Someone on twitter joked its an autonomous company. Retail, space, and medicine. The good, the d d e ly xtbaanthug dad kinda walked into my swing. Huh . Dont you mean dad kind of ruined our hawaii fund . I thud go to the thothpital. There goes the airfair. I dont think Health Insurance will cover all. Of that. Buth my fathe without that cash from aflac we might have to choose between hawaii or your face. Hawaii what . Haha. Hawaii you might have less coverage than you think. Visit aflac. Com and keep your lifestyle healthy. Aflac and the w