That is surging thanks to all things robotic power lunch starts right now welcome to power lunch. You can see stocks are higher right now. The dow is trying to avoid its third loss in four sessions. The s p 500 will be up for a third time if it can finish the green. Right now, its higher by five points not just best buy thats taking a beating, other retail names also getting hit dicks sporting goods, kohls, nordstrom, all off between 3 and 6 heres what else is happening at this hour tesla firing back at reports that sales in hong kong came to a halt this after a tax break for electric cars was slashed. Tesla says its business does not rely on Government Policies and the Hong Kong Government will continue to be strong. But for all you traditional car drivers, the average gallon of gas down to 2. 31. All you people in South Carolina can smile. You had the lowest average cost in america at 1. 93. More people are hitting the skies, as well Southwest Airlines says passenger traffic grows more than 3. 5 last year. Shares of love down 1. 5 tileer we begin with one of the big stock movers, best buy the retailer getting slammed down about 6 today. Rico reports that amazon plans a rival to best buys geek squad service. Joining us is the reporter who broke the story for rico, jason delray welcome. Food to have you with us thanks for having me. So what do they plan to do and how tricky is it going to be to do it there are two pieces of this. Theyre hiring inhouse tech experts to provide inhome consultations for free, specifically focused on how best to use the alexa voice assistant. A lot of people are buying these echo devices but dont know what to do with them. The other piece is theyre charging people to set up smart home devices like thermostats and Lighting Systems that integrate with alexa so its a push around the smart home because the alexa is perhaps the future hub of the smart home so thats sort of the two main pieces of it have they been finding, i guess, that people just dont know how to use alexa . I use it sometimes, but i use it to find out how tall is Richard Jefferson . How much does lebron weigh because youre such a basketball fan me and my son yeah. You know, theyre not commenting at all about this right now. Which is a little unusual, because its already these services are already alive in seven west coast cities. But i think largely the industry is finding theres a big educational gap between where the smart home and voice Assistance Technology is, and how people are actually using it jason, when i read your headline, i thought oh, this is to get over the hump of the whole idea ithought it was about installing big tvs you walk into best buy, the thing is enormous. They set you up with an installation one of the down sides to amazon ordering is lack of installation so maybe it would go to a geek squad. Are they doing that, as well yeah, so i think over the last year or so, theyve been letting third parties offer different types of Home Services on the amazon platform, including tv installation, my brotherinlaw actually just hired someone off of amazon. And thats third party, right . Thats not amazon itself now its amazon itself correct theyre billing this as theyre hiring amazon employees. The job listings say preferred qualification is experience either as an apple genius bar worker or a geek squad agent as theyre called so it says a lot those arent installers, are they if theyre going to do hang your tv . Theyre specifically focused on installation of smart home devices. Thermostats, sprinkler systems jason, do you think theyre going to be able to find the workers for this, especially in the markets theyre in theyve got to pay these people. Thats the thing. You would think if theyre going to hire them away from apple and best buy, they might have to pay better like i said, there are job listings showing theyre looking to hire ten more cities that i found, including dallas, miami, las vegas, i believe houston, hoboken, new jersey was another one where i saw job listings so thats a big question if the service doesnt live up to sort of the hype, it may be a step back. I will say the reviews, there are 500 reviews for the free consultation right now on amazon and i think the average rating is 4. 9 out of 5 stars. So theyre doing something right in the initial markets but can they scale it is a big question good story there, jason thank you very much. Well see you soon thanks for having me. Congress back to work for three weeks before taking off again for the summer recess. The question is, will this be enough time to pass what President Trump called a beautiful new Health Care Bill lets get to kayla on capitol Hill Reporter the president said he wants it fully approved, meaning not just a senate vote but a compromise that would win house approval thats a tall order with divisions deepening during the last week of recess. Heres where things stand right now. There are still about ten nos from the senate. There were nine before the recess, including ted cruz, who appears willing to make a deal there were two additional senators who have since said theyre not on board with the current draft. A new version of the bill is expected earlier this week, as early as tomorrow that would require a cbo score. If there is a vote, if leadership decides the bill could pass, that would take place over the next two weeks. Some lawmakers, including a handful of republicans, are looking for a bipartisan alternative. Among them, Mitch Mcconnell said if the bill doesnt pass, the priority will be to shore up the Affordable Care act exchanges. Some skeptics say thats just posturing on his behalf. Senator Chuck Grassley said that the consequences would be more dire, tweeting over the weekend, republicans wont be ashamed, we will go from majority to minority there are three weeks between now and the august recess. It is clear the white house wants a win out of capitol hill. But its unclear how the white house plans to shore up the bill if it does gnlt involved at this point. Back to you. Thanks so much. We wait to see what happens with health care reform. That means tax reform gets delayed. What happens from here joining us, sarah taggefaigen sarah, are republicans going to blow here . It looks like that today . Well see what this new Health Care Bill looks like but i dont think failure for republicans is an option i dont think that they can present themselves on a ballot in 2018 if they have not solved the health care situation. And there is a lot to solve. Obamacare is failing in some places my home state of iowa, for example, has one insurer in most of the state so they do need to do something. In an effort to do check a win column, larry kudlow has argued do Corporate Tax reform first. We heard at one point, Mitch Mcconnell was thinking, you know, were going vote on health care one way or the other. The thing dies, at least we can move on. That seems to have disappeared and theyre still mired in this. Should they drop it and move on to something easier . I think they should definitely get tax reform done they should have focused on tax reform first, because theres more consensus around it, and wins produce wins on capitol hill failure on health care will make it more difficult, i think, for tax reform to get done, or anything meaningful. But i think thats one of two options republicans have right now. You figure out something on health care, and you get it done one way or the other, and you claim victory. Or you go out to the American Public and say, this has been very difficult its a complicated issue weve been spending decades on this issue and havent come up with a viable solution, including obamacare. And were going to put eight senators on it, eight house members, some number, and were going to spend a year studying it then they have to come back before the election and pass it. The republicans have had years. Theyve been complaining about health care for years, so you think they would have something in the hopper. But whats the rush . Politically, is it important to get something done before x date versus get something done that solves some of the problems, however long that may take you said it, i didnt they have theyve been really very strong in we have torepea obamacare and replace it thats been a battle cry of the republicans and obamacare was unpopular. Now weve seen a turn around in that situation i think sarah offered a lot of wise counsel there in her comments it is now crunch time for the republicans, and for white house. Sequencing in any administration, particularly in the first year, is crucial in our case, it was the economic deficit reduction plan, and we barely passed that in the house and the senate we had to get that done to lift off with the rest of the agenda. Thats what the republicans are facing but health care is such a complicated, difficult, but yet personal issue i think at the very least they will have to shore up the exchanges if theyre not able to come together with a comprehensive bill should they have been ready with a come pprehensive bill . The answer is yes. What role should the president and the white house be playing here he has to be active hes got a lot at steak here he must look to Mitch Mcconnell and paul ryan. But the white house has got to be active. I think sarah would agree with that the president has to show some leadership he campaigned on it as well during his campaign, so he should be ready from a policy standpoint also. He should be driving it frankly. Is he that kind of policy wonky guy . It doesnt seem like hes much more of a big picture thematic person. Hes not the only person that hasnt been a policy wonk, but he has a lot of smart people around him and i do think the white house is going to produce a tax reform package that theyre going to drive. That will be a bright moment for the Trump Administration, and possibly something, if they do put that out later this summer, helps them turn a corner one quick question, is doing tax reform putting the horse ahead of the cart in the sense that unless you know what your health care sort of budget cost is going to be, its very hard to do a tax bill that makes any sense. Thats the theory that you had to get the Health Care Bill passed, because it was pressing, and it also set up the tax reform bill. Thats exactly right but i think now the republicans are where they are you have to move forward and resolve health care one way or the other. Again, a very personal individual issue with every american is there a fix . What if there is not a fix i think sarah outlined a pretty good plan b its going from 5 to 17 of gdp, 4. 6 billion prescription drugs doled out last year. Obesity is at 30 . What if there is no fix . Well, i think there may be its possible theres no fix right now in the near term i hope im wrong, but im not sure that i am i think the very least, at the very least the republicans and hopefully perhaps with the democrats participating, do something to shore up the exchanex exchanges. We have not found the right approach of building a bipartisan consensus on Health Care Even with all of the very important points there are probably fixes, not just bipartisan. Thank you both michelle, if there are fixes, they will not be popular oh, no. They are not going to be popular. On kek, betting big on robotics, and how investing in a robo etf is trouncing the overall market but this is not what you think well talk to the man behind it. But first, small investors piling money in the stock market in a big way socalled smart money of hedge funds. Thats next. baby crying slow jazz music fly me to the moon and let me play bell ring Flexshares Etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back bill miller is back on top again. His Flagship Fund is outperforming the competition by nearly six Percentage Points has this come down to one or two stocks its a handful of them, but they are deeper value plays in some peoples minds. Bill millers yeartodate performance for his fund, his opportunity trust, is 20 . Thats just yeartodate beats the s p 500s 8 here. The one year, the last 12 months, is up 48 , a considerable margin there in terms of the s p 500s 14 gain. We took a look at some of the heavier weighted stocks. Some of them have done really well over the past 12 months way fair, a 3 weighting in his funds, up 111 yeartodate. Restoration hardware, one of the stocks picked eed up on the ch up 104 . Amazon, we know that stock is up 31 . And american airlines, delta as well, those are some of the older holdings theyve had for a number of years. That stock is up 14 yeartodate so a sampling, if you will some of these beaten down retail names have recovered a lot, doing really well for bill miller and his funds thank you very much bill miller may be crushing the markets. So can we keep heading higher and where are the opportunitying here or elsewhere . So brian, you began last year with a fairly optimistic forecast for stock prices, and a lot of it has either been met or exceeded now halfway through the year what do you see for the next six months have we nipped at the peak we may have, because at the end of the day, we need to have fundamentals grow into the market stocks, prices led our best case target is 2500 until the market exceeds that number, were not going to adjust or if we see a pullback, we can be more advantageous with whats happening. But our longer term bull market remains in tact, tyler the problem that we have with the market right now is there was a lot of optimism coming in at the beginning of the year, now we need to see earnings grow we have seen Company Managers be more conservative. So the summer doldrums havent hit quite yet. Were eight years into this bull market, right yeah, eight years into a 20year bull market. On the private client side, the people we talk to are not engaged yet. Maverick is not engaged with respect to coming into the market this has been a momentum driven market and mom and pop in lincoln, nebraska have not been playing yet. Steven, you have a view that leans towards emerging Market Equities right now i assume emerging market debt, as well. Explain your thesis. Even clearer, youre looking at u. S. Stocks, which we have fully invested in, hanging on to their highest share of Global Market capitalization ever valuations are high, but i think youll see double digit earnings gains for u. S. Stocks this year, that and low Interest Rates and youre looking at a good return environment. When you look at all regions, youre looking at slightly below valuations from a longterm perspective. And you have fixed income and interest costs that are just dra matt chi hi dramatically highr these are the types of readings which make us invest there in europe, we would very clearly favor equities over fixed income what about the whole idea we just showed bill miller outperforming. Val is bill miller, doing what hes doing, is that a sign of the rotation should we follow that idea and switch out of momentum and growth and go into value stocks here in the United States . You are nodding you are head up and down, brian. Yes whats interesting about the positions you show from bill miller, hes a big Financial Sector holder. When you look at the value part of the market, the best intrinsic fundamental value are coming from u. S. Financials. So theyre increasing dividends. We think thats going to be the place to be for the next three to five years. Steven, last word to you quickly. Sure. I think that u. S. Financials standout as the best value cyclical stocks. When you look at companies that are changing their industry, that are growing very rapidly multiple years until theyre a dominant force, youll find that post summer rotations, a lock of row men tum and professional investors trading around, these are longterm generators brian, steve, appreciate it stocks have been tanking after going public very rocently, but shares of blue apn getting a pop today. Thats next here on power lunch. You too, unnecessary er visits. And hey, unmanaged depression, dont get too comfortable. Were talking to you, cost inefficiencies and data without insights. And fragmented care stop getting in the way of patient recovery and pay attention. Every single one of you is on our list. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Welcome back a u. S. Judge has given approval for a wells fargo settlement for its fake account scandal it will pay 142 million for customers whose credit was hurt. It involves claims involving credit cards and loans between may of 2002 and april of this year wells fargo reached the feel back in april. It just needed to