What stocks staen to benefit from tax reform . Goldman sachs has a basket of names set to outperform. Elon musk is trolling his haters on twitter after the companys stock surge pushed its market cap above ford for the first time. The president scheduled to hold a town hall meeting with 50 Business Leaders. Among those slated the ceo of citigroup, blackstone, mast ecard and jetblue, it he will focus on improving the Business Climate discussions about infrastructure and jobs. Beth comstock from ge, tom farley from the nyse, john paulson, steve roth, largely new yorkbased. Jim . Got some wall people there and private equity, mike corbett obviously someone who would be able to talk about deregulation. Yesterday theres full scale assault halftime i think the deregulation is so important. Please, with enit comes to the banks, its pretty much everything. Maybe this is back on track. Maybe this is what was doing well. Now there are a lot of people who feel that what happened with health care was there was an agenda going with a full head of steam for business and got sidetracked. Is this the beginning of a way to get back on that ship . I dont know. I think steve vernado has a lot of office space but understand retailers. They have office space and small ownership i believe as well. Look i think that remember those times every single meeting it would be like kind of here is the new things, here is my phone number, call me, we got some dereg and suddenly the morass that is congress and the swamp. Swamp is the charge. Now theres reports this morning that there are attempts to revive the ahca, white house officials meeting with members of the Freedom Caucus on monday, golf with rand paul this past weekend, even raising the question of whether they can get a vote before the easter recess. Sheesh, how did that get back on the agenda . I hope he talks to some of the guys and realize weve got issues in this country that maybe soft, they know how soft from mastercard the receipts are from march. You bring back health care you bring back morass. Between the Supreme Court and health care, we are in gridlockville. Gridlockville. Last i checked the republicans control all three houses of government. Right. Gridlock is in place when you have at least one of the parties controlling one of the houses. Thats not the case, jim. Well you have republicans in name. House divided cannot stand. Are you with me . Thats ridiculous. You have the freedom party. What are they, not republicans . I dont know. I dont know how to describe them. Theyre a caucus, theyre not a party. Well im being metaphorical. Youll try to rename them . Im saying if you got one group of people not going to agree with another group of people in the Republican Party time to switch and take up taxes. Well talk to jason furman in the next hour. Holy cow he has an oped looking at the way to get a bipartisan tax deal which essentially he means focusing on Corporate Tax only and trying to get in the zip code of sensible and bring in some democrats to that process. Furman has horse sense. He used to speak at 8 30 on fridays, remember . I do. He would say its a great number and youd ask what was going on, great number and dig geeper and what you learn . Yes, great number. Great number. But the guys have been unleashed suddenly. Yes. Even jack lew is saying something. About thor, mr. Med . How did we get on him . Jack lew is from queens so maybe hed offer some little advice. I dont know if hes a mets fan. They looked good yesterday. Only 161 wins to go. Well were in first place. Meanwhile, tesla leapfrogging ford to become the nations second most valuable automaker in terms of market cap surpassing the 47 billion after tesla reported record quarterly deliveries and ford had the disappointing march sales but there are skeptics when it comes to valuation. Walt mossberg tweeted i admire tesla and elon musk but this is the billionth example of why stock market valuations do not reflect reality. Follow up reporting musk said exactly, tesla is absurdly overvalued if based on the past but thats irrelevant. A stock price represents risk adjusted future cash flows as musk said, jim, Stormy Weather in shortsville yesterday. Yes, hes a natural born comedian, too. Triple threat guy. Look at ibm, 161, 160 billion and say nothing should be bigger in tech than ibm, im referencing when i first got in the business it was inconceivable a microsoft or intel could surpass. It tesla builds 500,000 cars and they sell you would understand why this is, im not trying to rationalize. Ill go the other way on this. I think this has more to do with ford and gm one of the lower priced companies in the s p because people believe its peak autos. Go back over from phil lebeau said yesterday and you have an answer for why ford and gm, their price to earnings global are sinking because the numbers were terrible. Is tesla overvalued . If they make 500,000 cars, no. If they right now theyre making 100,000, rate of 100,000 a year. 25,000 a less quarter. Certainly not 500,000. Not yet, no. Theres a guy who knows cars, a man who knows cars, and that man is jay leno and jay leno said there and said name me another car company thats been successful in terms of the ford, chrysl chrysler, gm. I think back to what he said. If you are a believer in growth you believe in him. Obviously this is the amazon thesis. Theres only a couple of amazons. Theres been amazon and help me here. Theres been any other size amazon, you had total faith . No, nobody has gotten quite the credit in all ways that that word meanings it has. Nobodys gotten quite the credit amazon received from its Shareholder Base over a long period of time since jeff bezos wrote his report in 97 saying well go about securing future cash flows, not in the business for performing for this week, this month or year. To lenos point he was talking about what a great car it is. Were not talking about that. Were talking whether they can create great cars at scale. I want to meld that with what jim stewart said. This is an infurrial cult stock. People who like tesla stock like the stock. Theres a certain reason they like the car and the stock. Tesla is a loved car, and people buy the stock. Now does that make sense . Well theres a lot of things in the stock market that dont make sense, but if you love something and you want to buy the stock, a lot of people wont fight you. They will tell you, i could do g and say look at that balance sheet. Could you have loved your fitbit, you could have loved your gopro. When you saw that goat on the surfboard with the gopro. Ten cent validated this valuation. Ten cent didnt want to buy 5 of ford. No they didnt. Thats true. Can you make a fundamental case for tesla on a discounted cash flow basis, based on the company itself for the stock price . No. At this level . No. You cant. Even with it becomes much more than a car company, solar power company, it becomes a battery company. Well you have to believe that like a lot of companies that have huge market valuations when they come public, should we talk about snap . Snap, if you go and read that s1 the document, at one point they Say Something like maybe we dont even theres no way we dont want to become profitable until were scale. We got to scale. Go over snap and i could argue that snap is saying hey listen, forget about profitability. Were going for broke here. Tesla is going for broke. The market, there are people in this market major mutual funds that like to go for broke. Thats what they do, and if they have a panaplea for go go for broke stocks and two pay off. The jeffries call that equated snap to a lottery ticket. You think tesla is in that universe. Exactly. You wouldnt add it to your Charitable Trust . No, im more inclined go gm can be bought, because i like value. I dont think it has any place in a Charitable Trust. But you know what . Remember, amazon is what we saul sui generous. No way there would be another amazon but i understand tesla is bigger because i understand the flaws of the market. If youre short that stock and ten cent comes in, you cant cover, youre trying to bid it up to bring in the short because your boss is saying i cannot believe youre short tess larks youre idiot ten cent bought 5 . You dont know what youre doing and when i drive it, i love it. We are getting some news from ralph lauren, the Company Announcing its closing its flagship fifth avenue store in new york city. It plans to integrate its product into other new york stores on madison avenue in downtown. Rl announcing several key actions as part of its way forward plan. This is the latest element of restructuring, including more cost savings and job cuts. They have a very big charge involving leases which you start going right to the mall and when you think about the mall, you think about nope they are put out by matthew boss from jpmorgan, it was slow single digit decline in traffic and now accelerated to mid single design, Urban Outfitters talked about terrible numbers so the mall continues to get worse and the forward looking companies are taking action and ralph lauren is trying to see its way to get rid of high cost real estate and high cost mall stores because theres a diminishing of traffic that is extraordinary. No one saw this coming. This is happening at lightning speed. You go from low single digit declines to mid over a period of months. What about the general leaves j. Crew . 26 years creditor with a lot of their key look. And a lot of points, j. Crews and malls its tough and got worse as you say in february and again in march. And theyre all scratching their heads, guys like mickey drexel, jim. I know. Seen so many ups and downs and arguably one of the great merchants of his time, like what do you do . But if youre burlington and youre in that strip mall. You always come back to burlington . Well all buy burlington as the only way to whats the market cap . That was a needless ad hom i hominim attack. It wasnt you. Im having frustration with my email and im taking it out on you, sorry. You ought to go read the four agreements. Who . The four agreements. Oh, geez, you got so much work to do. Theres a lot to talk about this morning including a downgrade of b of a. Jason furman will talk about how to make tax reform bipartisan, calls on sales force, utx, cat, amazon, google, bank of america, well get to all of it when squawk on the street comes back. Be live monday. Customel can we at least analyze customer traffic . Can we push the offer online . Brian, i just had a quick question. Brian . Brian. Legacy technology can handcuff any company. But yes is here. Youre saying the new app will go live monday . yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. B of a gowngraded by citi from buy to neutral. Shares up more than 35 since the election. I havent seen any reference to what the tenyear has been doing this week jim but we are watching it at 2. 32. This uniquely sidesteps that. Talks much more about the idea the estimates are coming down but basically saying yes the estimates come down, delusion of warrants and trimming their numbers but they really, if you read it, you want to buy it is what im saying. You read it, you want to buy this stock. They say its move too much versus jpmorgan. People would say wait a second they have a bigger deposit base so that actually isnt wrong. Its also, remember it was the most undervalued going in because the stock is trading back to where it was six years ago but i do say it could go down a buck or two but you want to buy it because jpmorgan is here, and the valuation cannot be solved. I dont like this call. I dont like this call. I think that you get a couple rate hikes, you get a couple good numbers out of moynihan and you say what did i sell it at 22 for . What was the purpose . Youre not really thrown by Consumer Spending on friday, auto sales yesterday. Well see what durables do but its flat or down three out of four months. I am worried about march. March was a weaker month but i think that march was a weaker month for some Consumer Spend that may be related to tax receipts, the auto numbers were weak, the retail numbers are not great so i am concerned. Im just saying that i think that it may be with net interest margin, unless you get a weak number on friday, then this fellow could be more correct. Im just saying that the bank is very undervalued and you cant be so precise if youre a retail investor. Ill get out of here but get back in at 21. March was not a good month. We need to see a strong number on friday. We need to see a blowout number. I think march something happened. Lot of it may have been with washington. Theres that. Some are trying to posit that, we had the warm weather discussion last month. Yes. Maybe it did draw some jobs forward. Well find out. I go back to the caterpillar upgrade well get to later talking about construction about to come back. Ringing the opening bell btu, the Coal Companies have money. What is a coal company doing with its money . Goes to caterpillar and it buys mining machines. They have running video of their operations, the size of those trucks. Theyre really big. Oh my lord. Like the tires are twice my size. Yes. But im not giving up on the construction side, technology is a very nice upgrade but yes, i want to seize those numbers on friday. They better be good. Yes. Better be good. Well find out. You mentioned the cat call over at goldman. Target goes to 120, they added to conviction buy. Part of their thesis in Mining Equipment is truly discretionary and after going for market share last couple of years, theyre now increasingly focusing on efficiency. Yes, and what i thought was very important about this, they minimize just by the amount of print they spend on, the litigation risk, the investigation risk. Theyre saying listen lets go beyond that. This is a very bullish upgrade, and its basically saying that its all systems go, 120 price target. I dont know. The construction part of the economy, the United Technologies upgrade we got this morning again very, very important. That was from out of the u. S. Bond because Capital Equipment, construction really doing well right now. All the regional banks will tell you that but theyre not going to the mall and theyre not going to build any malls but theyre building stuff. Data centers, although in the nvidia downgrade theyre saying theres a slowing, that would be news to the companies i no he who build data centers. I saw that downgrade this morning. You were talking positively about nvidia yesterday. Dave kohn once a receiver for you guys, definitely a met fan. He was an excellent company. They make data centers and theyre sold out, in most of their data centers. Try to work back to the mets because i know you love them. I appreciate that or the coneheads. People thought they were angry at each other and im the only one who is really angry. When we get back jim cramers mad dash. More squawk on the street straight ahead. Hey, hows it going . Um. Who are you . Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. See . Were putting away acorns to show the importance of being organized. Thats smart. Whos he . Hes the green money you can spend now. Whats up . Oh you know, gonna pay some bills, maybe buy a new tennis racket. Tennis racket for a squirrel . Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. E trades powerful trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade seven minutes before we get to the opening bell for this tuesday. Nvidia we spoke about it briefly and talked about it a lot at the beginning of this year given its incredible performance last year as a stock, jim. Theres a downgrade today. This is Pacific Crest i have it in my hand and its violent, because this is an actual downgrade to sell and underweigh, talking about desktop saturation of their cards. Now i got to tell you, theyre saying theres big inventory issue. Lower margins incremental tend to switch to revenue, possible pause in the companys Data Center Business this summer . David, this is, they also mention tesla lead times, signaling perhaps theres no longer, thats part of the data center, no longer that much supply may be outstripping demand for the moment or at least getting lets say this is one where you cant have this multiple if you dont have that level of demand. All right, but nvidia story is about a lot more than gaming chips. Its the fact their chips have been good for other uses that are growing enormously. Yes. I think this is a relative downgrade. When you look at it, what theyre really saying is its had a huge run and others i think would be better. Ive got to tell you that i think in nvidia has been picked on, its up 200 last year versus sky works and cirrus logic and broadcom, and xpi, why is there so much coal buying at the 110 level. But you know what . People are struggling with nvidia because nvidia is a quiet company. Theres not promotion saying were doing great. You got to let it come in. What can i say . Youll get the reaction and defenses tomorrow the autonomous driving needs enindividualia, the data center is not slowing down. There is no gpu saturation. If you take action today remember youll hear that tom re. They will be out there defending nvidia, they always do, they being wall street. All right. Well keep an eye on those shares and so much more, when we come back with the opening bell here on squawk on the street. Stay with us. The youre wat strpt strt live from the Financial Capital of the world. Opening bell in about 90 seconds. Busy Tuesday Morning as we await durables in half an hour, the president meeting with about 50 ceos later on this morning along with a slew of analyst calls. We havent got on it half of them yet. I am very concerned that we are getting big Cap Commercial enterprise upgrades, but when we see Something Like this Urban Outfitters downgrade tha