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tv   Power Lunch  CNBC  May 14, 2018 1:00pm-2:57pm EDT

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financials the selling pressure abates a little bit and we don't see the big heavy volume on slightly down days. one thing i would complain about and we are not noting heavy volume on the days i want to show you the russell 2,000 right now. this is what i am telling you and what i am saying it is getting a little tired we basically failed as we hit 1615 right there, the historic high for the russell 2000, you are looking at the etf for that. i should have passed through it. what we hit was a lot of selling. that's resistance and not surprising >> thank you very much the dow heading back to win a nip of 25,000. how much is the recent buy back boom fuelling this run and can you trust the rally. >> john lynch is or chief
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investme investment travis, i am going to start wu buy backs have been helping. i cannot imagine they are not helping in some ways another thing that's helping is some of the worse fears of the past two months have not materialized and trades was boiling as a potential problem and now it is on simmer. >> that's right, tyler good afternoon the market has rallied since the job report as bob pointed out and there is several factors and wage inflation have not been as extreme and the january job report that we saw in early february and the worse of the trade fears have failed to materialized once people realized the offset of tax cuts and relative to the actual number we are looking at $800 billion and tail winds to approximately $80 billion and head winds from
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over the course of the next 12 or 8 months and you talk about with shares b buy backs, the lat five or ten years, there is a lot of validity to them. if you think of studies suggested of 600 billions of buy backs. you get 5% for just owning stocks >> all right, so jim, let's talk a little bit about the buy back move, number one number two of the head win that has appeared and some abated a little bit one head wind that may start to exert pressure is oil prices the buy back trend is clearly a positive there is a real economic value of company buying back their stocks the tax plan is helping that there is a head wind that's coming from higher prices. it is eating up some of the
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better discretionary income and lower consumer end a bigger change that it is happening and what has been a head wind for the market is the jump interest rates. we think that run is behind us and we think that's what is most likely for stocks to do better than next year >> is that a double whammy for consumers though if they are facing higher short term borrowing costs and higher gas prices, is that a double pinch on their discretionary spending >> well, absolutely. when you look at discretionary spending, it is discretionary and historically we see reduced supply by factors and we saw 300 million barrels several years ago and now it is only nine or ten. so from that standpoint you think of going into every memorial day weekend and going into the course of my career and
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people decide whether or not to go to the beach so it is supply and demand, the big issue is relative to the tax cuts from your question about rates. if you think of the tax cuts and the amount spent on the consumer should see about 120 billion of tax cuts you should see about half that, 60 billion if consumers spent. or if that does increase, we are looking at half the value of tax cuts that we anticipated as a result of higher energy. >> jim mcdonald, sounds like you are all in on a positive economy? >> we are but if we were all, all in, we would be looking at over weight industrial and tech. it is a little bit of a hedge position we do have an over way to healthcare stock whis which are little bit of a defense. we'll fund it to a defense
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sector consumer staples which are having trouble passing through where fundamental backups does not look too much >> jim and john, thank you so much to the deadly clashes in the middle east. the u.s. officially opens its embassy in jerusalem it is a deadliest day there since the gaza was closed for years ago. michael ruban is a scholar and just got back from jerusalem, it is good to have you here >> hey, thank you for having me. >> how do you interpret these violent protests today have they been protesting for mont months >> they have to some extent. the u.s. embassy proves to jerusalem provides the opportunity to protest you know the chairman of the palestine is now on the 13th year of his four years of his
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term, he's in his 80s and he did not appoint a successor. it is not just about the spark of the embassy move. >> the way it was explained was they have been protesting for months because they feel really pinned in because a lot of border crossings have been closed and you got the whole world focused on jerusalem and increase the level of protests so they are not forgotten. >> well, to some extent, that's exactly what's going on. on the other hand, what hamas has done recently is destroy the check point through which a lot of humanitarian assist flows and so forth they are creating a self-fulf l self-fulfilling prophecy if you will their life ex ppectancy is highr than other countries like tu
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turkey that does not mean the situation is good and israelis is the first to recognize that but there are many concerns. >> hamas was bombed and one of the crossings where a lot of fuels come in so there is a lot of sohortages >> yes, i do as you brought out the immediate of jerusalem and gaza to a broader lens on the middle east, can you remember a time when there were more dangerous moving parts in the middle east than there are today? >> well, personally i cannot remember it because i have not been born yet. a lot of people say that that's going on today was sort of like 1966 and 1967 when you had a full scout war of the 6-day war. many people bring up 1969 where you have the islamic revolution but you have problems in saudi
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arabia and so forth. a long story short, we are entered in unprecedented territory and looking at the lens through the israelis/palestinians problem is distracting. if you look back at the arab spring, that had everything to do with the issue. >> what lens should we be using? >> well, ultimately, we got to recognize there are a lot of moving parts here as we just said that things are influx and there is a generational change going on you know every u.s. administr e administrator is often defined by the problem that no one saw it coming and that may be the problem regarding to the trump administration, after all, bill clinton never expected to be engaged in bosnia and barack obama never expected to be in syria. we got the potential death of the palestinian authority a
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and -- we still may be despite all the chaos right now, we still may get a problem which is coming in seemingly from left field. >> all right, good to have you on, michael. >> thank you for having me >> mix reaction in the vegas casino stocks of today's decision by the supreme which could depave the way for legal sports gambling. those stocks are soaring as you see there. we are all over this big story we got the ceo of draft kingst join us and brent musburger will giver us his take on what it means on this gambling history "power lunch" is back in 2 minutes and you can bet on that. financial services rig
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. the supreme court the day is paving for new jersey to legali legalize sport gambling. >> the federal ban preventing states for not -- they could be like nevada if they want to and starting with new jersey and a
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dozen other states all the other states like pennsylvania, they have gotten bills passed ready to go saying if the supreme court says sports betting is legal then it is legal in our state we'll watch it state by state to see how they make their own rule that's going to be interesting can you bet online or over the phone. every state they're going to set their own rules so it won't be one national guideline it is like driver's license rule create a wild, wild west >> how quick liam i goily am i to place a bet in the state of new jersey the racetrack is about an hour south. within a couple of weeks you are ready to go. and even if there is to horse racing that day, go ahead and bet on the nba finals. >> you have to be in that state. if you are a big casino, you don't have an online company you want them to bet online or
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bet in your arena if you are a sport owner. >> stick around, we'll bring in our guest here, draft kings announcing today that this decision will pave the way for them to move beyond fantasy and into real life sports betting. joining us now is jason robins, it is good to have you with us >> thank you for having me >> you guys have long said that what your business is is not gambling, it is a game of skills as to a game of chance you are very, very ready and delighted, i believe, that now you are able to transform and fully conceived of what you have been providing is in fact partly a game of chance you are happy about this, radioigradiight >> i would not put it that way, what we have been providing stays the same we are excited to be able to offer the new prouduct which i think is regulated differently
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how fantasy sports is regulated. >> will you urge through lobbyist or your own efforts to allow people to wager online which is how they play draft king generally as opposed to have togo to a point of purchase a casino and a racetrack. >> well, i think that's what most people want and certainly there maybe some that don't but it is really kind of ridiculous notion that they think that a product that, you know people are currently partaking in online through a legal offshore black market website and mobile apps that you are going to eradicate that only by allowing it in certain offline places i think the real goal is take something that's unregulated black market activities and bring it into the light and you have to have mobile online to do that the right way and i also think that's what the consumer wants and people want to be able to access what they want from the internet and mobile phones now and you see that in every
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industry in the world and this is no difference >> what are you going to offer that now or what's different today for you and your company as a result of the supreme court decision >> this is something we have started working on back in the summer of 2017 when the supreme court announced that i were taking up this case, we said this is too big of an opportunity and too important not to be ready. we have been ready for a year now and a product we built and conversation >> what i am trying to get that the new product is different than what you had before, how? >> it is a sports betting product. the traditional fantasy game we offered just fantasy sports and you can play against your friends or public leagues and you choose teams of players. we love that product and we'll continue to invest in it but we'll never able to let people say hey, i want to pick who's going to win the game tonight or bet on whether the points will go over below certain totals and with now we can do certain things that state will allow it. >> there is some regulatory
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uncertainty out of the way mgm has said in past meetings that it looks as a potential $5 billion opportunity and they have operating experience and operating a sports book. do you see those sort of the analog players now being competitive in the digital marketplace. >> oh, absolutely. this is going to be a huge industry and there will be a lot of come tilpetition which is gr for consumers. we have great dna and we only started six years ago so it is mo mobile and all online for us it is a brand that people think about when they think about winning money on sporting events we think we have some advantages but there will be a lot of competitions and we respect all of them and it is going to be a great thing for customers because they're going to have a lot of different options and composition just drives innovation so we look forward in being apart of that.
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>> are you going to have to spend a lot of money lobbying state by state to get gambling rules in place in favor your company and not favoring higher tax rates the nba wants a commission or casinos that people want to go to brick and mortar >> also, allowing for robust and competitive market and i think what we saw in fantasy sports is that process very much of the process that we went through with the regulators very much led to that i absolutely understand wh why -- they should get something, it is their products and the state needs taxes and there should be a lot of re new generated for the industry and there will be enough to go around and got to make sure that the rules are put in place allows for innovation and competitions that's the key i don't mind if we have to share a little bit with others >> are you ready for an ipo now?
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>> the gate is open and an early state investor says that you will see draft kings as a publicly traded company. is that the message that you are sending out or something he said off the cuff >> jeff is a great guy and he knows our company well he's right, at some point our plan is a public company i am not sure if that's the next step for us, we have a lot of work to do to make sure as a company, we are focused on opening up this market and building the right product and marketing to consumers but at some point i do think a public offering will be in our future it is hard to say when but sometimes in next few years. >> all right, we'll be waiting jason, thank you very much >> president trump this weekend reversing course on chinese phone company saying it is losing too many jobs in china. what's really going on here? next on "power lunch."
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you set it. nasdaq. rewrite tomorrow. president trump over the weekend reversing course on chinese company. cayla tausche is joining us now from the white house >> reporter: both sides is trying to reverse the deal and some key u.s. deadlines. zte has become a bargaining chip in these negotiations. the company has been crippled by
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a u.s. enforcement action last month. the president tweeted yesterday that he wants zte back in business fast and ordering the department of commerce to get it done that's a sharp divergence. this april said that it was not abiding by the penalty that the u.s. put in place and then banned u.s. companies from supplying components to zte. this month, the pentagon singled out cyber security risks of zte. so if they are willing to give this up, what do the u.s. get in return there are a couple of things on the table. a new reveal of china of nxp merger has since been installed and u.s. agricultural exports among a whole host of issues
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this is about intellectual property rights, that's what the u.s. wanted out of these talks and we'll see china is willing to give any ground there we know the commerce secretary is giving us a speech on china and a host of other issues one of the goals of the administration is to get china's real world behavior to match what they say in all of their free trade speeches. we'll keep on listening into see if he says anything specific of talks that's going on and what we can see later this week >> guys, back to you >> let's bring in our former white house political director, sara fagan and john rutlacrutlatch >> do you got any entail on
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this >> when you have one man rules on both sides of the equation, trump and xi, it is hard to suspect -- and the ban on selling them was a little bit of an over reach. the approximately cost of north korea/iran shipments we had this issue for a long time >> it was rebuffed by the cfius process. since then there is security risk with telecom equipment and etcetera, zte is china's play on selling equipment into the emerging market world. >> sara, i assume this had to do
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with north korea that the president gotten something oconee on north korea and therefore he did this that's a lot of people's guesses when you call around washington. >> it is hard to imagine he would not have gotten some successions -- i also think that governor -- understands the impact that the section is we'll have a tariff on agriculture >> is it possible here we go going into a tough 30 days of north korea and china is the biggest influencer if zte goes bust, it was going to go bust i lost a negotiating chip before it got started here. >> it is an excellent point. we don't know what he's getting in return. i suspect americans having gotten something in return for
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this departure of this change. you know plus and as john pointed out, qualcomm, this was hurting and this was a huge client for these american companies and they were pounding on the white house as well >> all the suppliers, intel and qualcomm and broadcom, they're getting $100 million a year from zte. they're feeling the double punch and the stream of revenue. and trump sets himself up to look like he scored a major win. all of a sudden, he helped save this chinese company coming to the united states and he's also giving sort of a a chip to the tech industry as well as th thtg company. >> of course, i would have announced that i have done this
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for qualcomm and broadcom and intel. >> i would have a conversation with xi, oh, i am going to cut you some slack on zte. that announcement was made for the u.s. audience and not for the chinese audience if you want the chinese leaders, you just call them there is politics behind this. >> ladies and gentlemen, good to have you sara fagen and john rutledge, thank you kwcalling in on this >> the true impact is coming up. the rocker feller auction isast. wait until you hear how much mee paid for that basket that tyler had his eye on. >> oh, it is amazing >> we'll be right back or breaking new ground?
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hello everyone, i am sue herrera. >> alex azar delivering over high drug prices
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he's blasting what he called their tired talking points >> drug companies have insisted that if we can have new cures or affordable drugs with affordable prices but not both. i am not interested in hearing those talking points anymore and neither is the president >> mr. azar is a former drug executi executive. ivanka trump unveiled a plaque at new u.s. embassy people have been killed protesting that move >> iran has said it may resume ukraine yum enrichment at a higher rate if it finds the deal
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does not work anymore. you are up to date that's the new up da idatupdate >> back to you >> sue, thank you very much. >> these current levels, good or bad overall for the company? steve leisman have been looking at this. >> some downgraded the effect of almost zero when it comes to gross domestic products. here are three reasons lower imports are offsets and also by more exports of oil and capital spending by all business can offset, consumers paying at the pump >> mike feroli writes to me, quote, "we think the effect round to a wash, our prior
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modelling would likely have produced a slightly more adverse impact." >> the federal reserve is thinking the same way. >> it used to be a big oil shack was bad news for the u.s. economy but now i think it is neutral. it helps us on the production side and washes out at this point. i think it is not what it used to be to attract oil prices for the u.s. company >> the biggest issue will be one of distribution, higher prices of not to a wealth transfer to consumers to shareholders and from oil consuming reasons, which there are many more right now. the money will stay in the united states. economists we have contacted said their new ideas may not hold if oil surges gas prices have an out size
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impact the sustained gas prices of $3 a barrel or $3 a gallon can undermine can offset higher. now there is a big rethink in big oil economics right now. >> you led off with all of these points of how high oil prices have no impact basically >> offsetting. >> in the end, you said consumers are impacted by gas prices of $3 >> they can be >> is the thinking that gas prices and oil prices will no t remain that high because of production levels because we got shell in the u.s. will inevitably come up to fill that gas. >> not never stay up there i think there will be, you can have a sustained price above $60 a barrel but economists are not forecasting that what they're trying to forecast are the impacts. this is the most interesting oil
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story i have done in ten years chl before the answer was automatic and higher oil prices, bad for america. the idea is that all the production which have lower imports and also this idea of exports have very dramatically change the impact. >> on the macro level, is it the more you spent at the pump offset by the dollar, and also the wash for the consumers >> the idea is that we don't have this trade deficit from oil. >> well, could higher oil prices be a good thing for the economy. joining us now is kyle cooper and our chief economist at na natixis. >> joe, i am going to start you.
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>> rising oil prices are bad for u.s. households. while we have more production and cap x gets a lift. there is friction. the money that consumers are paying more that they are paying to dry their house or cool or heat their home, that money does not recycle back to the economy quick enough for every one penny rise and gasoline prices, it is worth a billion dollars in terms of household spending if prices went up a dollar, it is like a tax hike if it maintains >> joe, my story began by rethinking what we expect in 2015 or 2016 when oil prices collapsed. we did not get the pop on sku consumer spending and we found the cap ex is a much bigger drag on the u.s >> the 15 or 16 environments also is plagued by significantly
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weaker economic prices i don't believe that was a good example to compare it to to say we are going to escape away with these higher prices. >> how do you think of the impact of higher prices because you are saying it is good for the economy and if you look at it certain ways and regionally >> i am in houston texas without a doubt and the impact while consumers definitely are hit definitely and bonuses that cash flow impacts a lot of consumers and royalty checks immediately begin to show up with the higher oil price. so more and more people receiving royalty checks in the producing regions that it does have a much more dramatic offset without a doubt, of a much beggar disparity between the oil producing states and consuming states just like 20 years ago, there was a much bigger difference between the u.s. and
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it was producing countries >> so the u.s. is really being divided like the world was 10 or 20 years ago >> let me ask both of you, which is worst of the u.s. economy, high and rising oil prices or low and falling oil prices >> for me, it would be the former high prices you have higher inflation, you kill worker real income and also too, it is not like people want to spend more energy, energy ace cost it is not a discretionary item companies are going to have to pay more for distribution and run their plants >> it is a tax >> with the efficiency of the newer fleets with ev cars. that reduces a percentage of the income that is assigned have having to be dedicated to energy the percentage increase compared
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to 10 or 20 years ago is just a fraction yes, it is still impacts but it is much, much different. even the feds said you need to rethink the fact that the u.s. is not such a huge import anymore and much more glabalancd >> do we know what percentage the u.s. consumers spend on average of their income on gasoline >> i ask because -- >> it is a small percentage >> it was bigger >> that's why i said an outside effect of the american physche the gap is closing and 59% of our imports are a place of export from a trade deficit standpoint, the offset is tremendously different than how it was. >> can i add one last point, we look at history, you are right, we got much less energy and intensity that we had before but 20 years ago and 30 years ago, the economy is growing at 4% and now it is at a two. the change is significant in how
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it dampen spending >> guys, thank you rick santelli. >> all maturities are on change the minor bit of curve and you can see a 24-hour chart of 10-yr as we keep on knocking the door and opening up to february 1st it does not look like a pattern that wants to break away it did several weeks ago what's changed maybe the next chart. the bund yield, they're over 60 basis point and they're impacting the spread relationships. if you look at one month of 10 minus bund of 37 that was just last year. the widest it has been is at 244 closing basis.
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let's not deny the notion that there is a lot of traders out there selling bunds and buying tens on the spread april 1st starts for that chart. it will be the fourth down and actually the third update. it is getting close to unchange and many traders are looking to holding last year's settlement and the last little correction does not seem to have much legs as the upside did for the three week proceeding. tyler, back to you >> rick, thank you very much >> ceo elon musk announces a major management sha up keand what it means for the company and the stock when we return on "power lunch" in just a minute or two believe in luck. believe in luck. she believes in research. it can take more than 10 years to devingle medi and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments.
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to -- a following over the president tweeted out over the weekend that they're going to do something -- >> he seems to, he says his department regarding to this zte as an enforce action and not a trade action it is from the discussion this week with china. >> because they were caught right-handed >> elon musk announcing a reorganization of the company today. we are flattening the management structure to improve communication, combining functions where sensible and trimming activities.
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waymo and the other taking a leave of absence to recharge shares of tesla is down up and a percent and a half today that did not scare ron barron. let's bring in our colin rush, it is great to have you with us. >> nice to be here thanks for having me >> it is all about hitting the model of reproduction level. what are you hearing of the reproduction line and do you think this can actually help them achieve that goal on the re to really hit the cash flow positive metric. that's what i think is on the minds of all the investors here is does the company have enough runway to hit these targets and do they have the team now to actually hit the long-term goals and the expansion of the product offerings that they've talked about in the growth initiatives that they've put out into the public realm >> and what are you hearing in terms of their latest number of model 3s that they're able to produce.
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>> there's a lot of nouz in tise numbers. it's really about sustaining that run rate over time and making money at that run rate. >> i don't know if you caught the interview with ron this miranda warning on -- morning on "squawk box" but ron was an early investor in tesla. i think his first traunche that he bought was $30. he is of the opinion they will not need to raise money. what's yours he is really in tune with this management team. >> our view is that these guys need money they're taking on some very ambitious projects and the goals are robust we think they've put unreasonable time frames on achieving these goals and it would behoove them to raise the money and extend the runway. i think the management approach has been to keep the organization up against the wall, to keep everyone focused but what we're seeing now is burnout, frankly it looks like there's a number of folks leaving and we've seen this over the last three to four quarters, very senior folks that
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are leading some important initiatives for the organization and that's a really concern for a lot of investors >> melissa, boring bone-headed questions are not cool >> i should have learn from the that conference call i don't know why i asked you that, colin. the other interesting piece of tesla, there's so much tesla news today, but we're running out of time. they made a registration in shanghai for another company, tesla. do you think that is the aforementioned giga factory that will happen in china or is that something different? >> we'll see what they want to do i think the big news for us last week was the nikkei report that pansonic was getting nervous seeing that report and seeing them be a little bit cautious in a public forum like that is unusual in our view, and it causes concern for us that they may need to find -- that tesla may need to find a new partner >> that was only in response because on the conference call, they said that they were looking or they were poised for partnership, something to that effect, with tesla, so they sort of maybe, you know, oversold
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sort of the relationship that they have with tesla going into china and then they had to walk that back. >> certainly panasonic has a lot of options for partners on the vehicle side they're one of a handful of battery makers that can really evolve the battery designs and manufacturing processes to enable these vehicles to come through at lower cost levels so i think they're in a position to cherry pick which partner they want to work with and they certainly have a long-term relationship with toyota, which we think is potentially a better option for them right now, just from a diversification standpoint >> thanks for your time. the rockefeller estate auction shattered world records. more than 20 of them, in fact. we'll give you the staggering numbers that you have to hear to lioray en t veno beeve. that's all nbcsn next next next next next. if this is what you think a mercedes-benz
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the hammer has come down on the rockefeller auction, breaking a world record. robert is here with the staggering numbers >> it was billed as the sale of the century, and it did not disappoint the peggy and david rockefeller
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collection wrapped up way above the $500 million estimate. this is the largest auction of a single collection ever and 22 records were set during the auction. bidders from 53 countries all battled, paddle for paddle, over a piece of that rockefeller history. more than half the bidders were new to christie's. some of the highlights, the money clip went for $75,000. that picnic set that tyler really wanted, that was $5,000 to $10,000 and ended up going for $212,000 >> wow, man! >> could have bought a fork, maybe. >> and napoleon's sugar bowl, tyler's third pick, he bet on all the winners here, estimated $200,000, went for $1.8 million. now, all the proceeds, the good news, go to charity so harvard human of modern art, they key chain get $100 million, the rockefeller brothers fund and the council on foreign relations
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and the american farmland trust also getting money >> cool stuff, thanks, robert. so the bulls are the charge -- are in charge but should you trust the rally the supreme court handing down a major ruling that could have huge ramifications for gambling in america and the world's biggest cryptocurrency gathering kicking f n yk ty we are there live as the second hour of "power lunch" begins on the other side of this bring break. i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit to see what adding futures can do for you.
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here's what's on the menu. stocks are making their third recovery attempt since the correction began this one is the strongest since march. can investors trust this rally plus, sports gambling could soon be legal across the country. tillman, houston rockets and casino owner is going to join us on what it means for the leagues. plus legendry sports broadcaster brent mussburger is going to weigh in as well. there's a new start-up that's going to back you up. we'll tell you how it works straight ahead as "power lunch" starts right now ♪
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>> welcome to "power lunch," everybody. welcome to my house. a green day on wall street with the dow on pace for its eighth straight day of gains. the major index is hitting their highest levels in two months rights now, as you see, there are the industrials, up 65 points the s&p 500 is up by 2 and nasdaq by about 14 leading the dow, walmart, united health, disney, and pfizer semis on the move with the etf smh on pace for its seventh positive day in eight, those are your leaders there the gaming etf jumping on the back of this supreme court ruling on online gambling, caesars and penn national are lead there >> facebook has suspended 200 apps in the first stage of its review into apps that have access to large amounts of user data sears forming a special committee to explore the sale of
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its kenmore brand and related assets it's received interest from esl investments. and cbs asking a court to block controlling shareholder sherry redstone from interfering at a special meeting of its board. the meeting was called to consider a merger. sherry represents a significant threat, irreparable harm to the company and its shareholders, they say we begin with the markets and mike santoli at the new york stock exchange what is different, do you think, this time around >> well, melissa, a few things and actually, most of it works to the benefit of thinking that this rally has a little bit of a better shot of heading and i would point first to what i would consider the market's vital signs that are back to a normal state, more steady, the volatility index is really back in the normal range, below 13 or thereabouts. you have credit spreads also kind of back to where you would like to see them, back where they were in january also, the market sectors, the
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way they're in correlation or not so much in correlation, shows you the market's a little bit less sensitive and twitchy to headline, so all that is to the good i also think just the benefit of time passing, we've gone through this period where earnings -- the earnings base is built up, the valuations, therefore, cosmetically look a lot better than they did three months ago and i do think that makes it more palatable for people to come in, especially now that companies are released to execute their big buyback plans. all that stuff works out i will say we're at a level, though, where it's kind of logical where it might stall out. 27.50 on the s&p 500 is a level people say, look, this rally hasn't proven anything until it can get beyond that point. so i think it's a little more easy to be confident that the recent lows are a good base than it is that we're about to race off to hit new highs very soon >> all right thank you very much, mike santoli, down at the nyse on whether or not this is a trustworthy rally. so, as this latest recovery rolls on, how far can the bulls
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run? let's bring in senior investment strat gi strategist with oppenheimer funds. shannon, let me start with you do you trust this rally? >> we do we feel like there is a decent amount of breath in the market right now. we're really happy to see some strength back in areas of tech like semis, if you look at the technical, where, you know, doing pretty well versus the hundred-day moving average and for us, we looked at earnings, they were strong we didn't see kind of the bounceback that we would have expected off a nice earnings report for a lot of those companies, and i think it's been a wait and see china looks like things are simmering there and so therefore we're pretty optimistic given kind of the economic foundation of where we've come from and the fact that we've got earnings season behind us and a lot of headway in front of us >> how about you, brian? are we going to break to the positive here after this third run at trying to get out of this correction >> i agree completely. it's an economy that's doing well we've got a lot of stimulus
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coming into the economy in the second half of the year. the earnings picture looks quite good and inflation remains relatively benign, so when i get concerned about this cycle, it's going to be high-end rising inflation and significant interest rate hikes by the federal reserve. we're not there yet, and so investors should view what we've gone through as some uncertainty around monetary policy, a standard correction, the likes of which wehadn't had for a while but yeah, there's very little reason in my mind to think this market doesn't go higher >> shannon, you and brian are trusting souls i'm a little bit more of a worry wort, i suppose and i think a lot of positive good feeling has been built in over the past few weeks, specifically on trade potentially on north korea and yet, there are still plenty of things, shannon, to worry about, like rising oil prices, like the possibility that some of the things we think may resolve positively might not, and now there is heightened tension in the middle east
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>> that's correct. i mean, if you look at kind of where we are from an oil perspective, i think we were all worried about really low oil prices and now we're -- you know, we've kind of settled into a range. we've got to think about the potential price impact of higher oil prices that's going to come right in through to the producers and us as consumers as well we're also looking at the dollar we continue to see strength in the dollar, it's been a great few weeks for the dollar, and that's certainly going to hurt u.s. multinationals as we go forward, and so we're watching that in the back half of the year and it's probably something we're spending as much time as we were on the fed in the first part of the year, we're looking at the dollar in the second half >> but investors should remember that we are always going to be dealing with conflicts around the world or, i mean, i hope we're not always dealing with it but history is replete -- >> it will always be true. >> there's always events that spring up that always cause investors to worry the reality is, you know, none of these cycles die because of
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regional events. none of them die because of skirmishes they die when the federal reserve kills them with interest rate hikes for now, the inflation picture is relatively modest, inflation expectations are ticking up. that's usually good for equities until it gets too high and rising we're not there yet so at some point, the fed will kill this cycle, but it's not coming in the second half of 2018, and it's very unlikely to come in 2019 approxima 20 2019 >> but until then, what is the catalyst to break us out of this range? we had a great earnings season and that didn't break us out of the range. you can lay out the case right now that you can trust this rally, but trust this rally to do what? to remain in this range? >> no, we'll break out of this range. i mean, what ended up happening was the u.s. economy looked a little bit stronger than expected in the first quarter so you got a little bit of strength in the u.s. dollar, a little bit of strength in the u.s. dollar caused some concern about the
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multinationals we believe this is an environment that's likely to be more stable on the dollar so i don't think this move is going to be -- we shouldn't extrapolate this forward a lot of stimulus into the u.s., the last time we saw it was 2004, 2005, 2006, where did that money go it went all around the world there were boon in the emerging markets, the emerging markets reinvested that back into u.s. treasury so rates were stable. the dollar was stable and i suspect that's going to be the catalyst, a little bit of moderation, you know, some stability in the dollar. >> all right thanks, guys brian and shannon. now to the latest out of israel deadly clashes following the official opening of the u.s. embassy in jerusalem this morning. nbc is live in jerusalem with more >> reporter: hey, guys the situation in jerusalem this evening, very different than what we have seen unfold in the gaza strip throughout the ceremony today
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and for the better part of today, here in jerusalem, it was a very festive atmosphere, the israeli government obviously celebrating and welcoming the american delegation in what has been described as an historic occasion we heard, really, a lot of glowing speeches from the american delegations represented by ivanka trump and jared kushner as well as the american ambassador here to israel, and we also heard from the israeli prime minister as well who said today was an important day for israel and for the jewish people, but nonetheless, a very different reality emerging in the gaza strip protesters there, part of their weeks-long campaign of trying to protest and march across the border between israel and gaza were once again met with lethal force by the israeli military. the death toll now stands well into the 40s, at least 1,900 people have been injured as a result of those clashes with the israeli military a very dire situation. and in fact, the international community, the red cross at one
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point saying that the health system in gaza was on the verge of collapse. health officials there calling on the egyptian government to open its border with the strip to try and get some of those injured and wounded people treatment and try to get medical supplies into the gaza strip so a very dire situation the palestinian authority is now calling for three days of national mourning following the clashes there in gaza. they're also calling for nationwide protests to commemorate what is known as the catastrophe day that palestinians commemorate as the founding of the state of israel, which led to the mass refugee exodus of hundreds of thousands of palestinians from their homes and villages back to you. >> aymon, thank you. appreciate it. here's what's coming up on "power lunch." more on the supreme court ruling allowing states to legalize sports betting will it make teams more valuable and how many states will follow suit you are looking live at brent,
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legendry sports caster and we will ask tilman fertitta what he thinks back in two minutes.
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welcome back to "power lunch. supreme court paving the way for legal sports gambling nationwide vegas casino stocks are mixed following this news. contessa is live in las vegas with the very latest >> reporter: yeah, melissa, the casino companies here have been awaiting eagerly this decision, nonmore so than mgm ceo who told me in december he thought this decision would be a big driver of change in this industry in 2018 he said that mgm would be ready to roll out sports gambling as soon as the supreme court came down with their decision take a look at the stock today mgm seeing a big bump. caesar's also seeing a big bump. here's a sports book, established sports book on the las vegas strip, they can easily duplicate this and put this in the casinos that they have around the country today david katz thinks caesar's could be a big winner. he's also looking at penn and
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boyd gaming. harry curtis at nomura agrees and in fact he's predicting now potential rooicevenues of $5 bio a year because of this decision. take a look at these technology providers. they are the ones that provide the technology to the casinos for gambling also seeing a big bump today and i spoke with a smaller competitor to these big guys, and i asked them for their reaction to this news. >> well, really, it's kind of one and it's huge. i mean, people anticipated it would be overturned based on the questioning of the chief justices but here it is. and i think you're going to see some very interesting events unfold fairly quickly. >> reporter: and if you're wondering what nevada might think of extra competition, the control board came out with a statement and said it supports the supreme court's decision that it has decades of regulating sports gaming and they're looking forward to serving as a resource for other
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ju jurisdictions as they move forward in instituting sports betting, guys. >> thank you very much for more on the impact onlas vegas and professional sports, let's bring in sports casting legend brent musburger who currently runs the vegas stats and information network. brent, welcome good to have you on cnbc tell us what the vegas stats and information network is and does. >> well, what we try to do is to give research about upcoming events to those who would prefer to make a wager on a given sport. we felt that it was a business that in the past has sold picks, and basically, that's a bogus business what we want to do is to provide the same kind of information that you provide to those who would prefer to bet on stocks or back the stock market, like right now, we're looking to see if you go through the 25,000 level on the overall dow industrial averages. we try to do the same thing with
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the betting market for example, tonight, the western conference final in the nba. i know you're going to speak with tilman fertitta, who happens to own the houston rockets. his team is about a point or a point and a half favored over the golden state warriors down in houston tonight we talk about what the home court advantage means. we talk about the various match-ups of the athletes. we try to give the sports better an advantage that he might be able to employ when he takes a position on a game >> let's turn to -- everybody's been saying how big this supreme court decision is, and i don't mean to dispute how big it is and how transformative it may be for las vegas, for the gaming industry, maybe even for the professional sports leagues, but a las vegas university, unlv professor in their gambling department there, they have a person who studies this, points out that only 2% of nevada gaming revenue is from the sports book. so, my question is, are we making more of this than it deserves >> you know, i always look at
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things like this the devil's in the details okay and that's going to be the key here the a amount of taxation that these states are going to demand when they go in. this is not a huge revenue flow but what it does do in las vegas is it builds traffic the most amount of money wagered here in nevada clearly is on slot machines, and that's the profitable part of the gambling industry but what sports does is it's an attraction for people to come into the casinos, and those who are involved, like those people at mgm, they know exactly what i'm talking about. so, in atlantic city, let's say, next year, when the super bowl, i believe it's down in atlanta, they could have a huge party that first week in february. that's what they do out here in las vegas. they have done it for decades. march madness. builds a huge crowd in the middle of the week so, what it is, is it builds traffic. but don't look to it as the end-all when it comes to tax revenue for the state of new
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jersey or any other state that jumps in that's why i say, the devil's in the details, friends, and you know what i mean >> brent, you're in the broadcasting business for decades, calling all the major sporting events for the various networks do you think that nationwide sports gambling could increase viewership of sports and therefore help espn, for instance >> no question as a matter of fact, i think i noted earlier on cnbc, on your crawl, that the disney stock was up about a buck. sfoo espn has had trouble on the cable side with revenue, certainly not in the movies, but there is no question that they will be able to run the spreads not only before the games but there's such a thing as end-game wagering that the states are going to have. the big thing for sports today is the fact that we're coming to a regulated market the black market, listen, we've got estimates up to $200 billion a year if you can bring that revenue in and regulate it, the sports organizations are going to
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profit out of it over in london, for example, at wembley, you actually have a betting window i was down at sydney, australia, recently they have one at the cricket stadium. you can bet during the games that are going on. it's a big attraction. we get it out of the black market prohibition in sports gambling has come to an end today and it's about time. >> do you have an opinion about what it does for the leagues and the teams? you hinted at it there >> i think it increases the value dramatically i don't know -- those of you who are watching the cleveland cavaliers losing that opener to the boston celtics, when you saw lebron james' uniform, the big swoosh logo was over here because they're a big sponsor of the nba, but over here was goodyear in the future, when you go to london to look at some of the big soccer teams over there, you will see maybe an mgm over there as a logo. they will be one of the sponsors it increases sponsorship money
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it will directly go to the bottom line. the sports teams are probably worth more they have to come to grips with the fact -- listen, i drove past the raiders' new stadium that's under construction down there. you can walk to the strip and make a bet on the raiders this year so, the nfl clearly knew this was coming >> got it. okay good insight thank you, brent good to have you on. always a pleasure. >> you got it. have a great day get to 25,000. come on, dow >> he's with the vegas stats and information network and clearly a stockholder as well. all right, we are not done talking about this big decision by the supreme court yet who better to join us than someone who owns both a sports team and casinos in new jersey and in vegas who else but tilman fertitta's going to join us head. first, though, the crypto craze has taken over manhattan we're going to take you live to the consensus nfencoerce next. ♪ know when to walk away, know when to run ♪ lower calories. ♪
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with the start of the consensus conference in new york
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city, the crypto bros have taken over manhattan now this is a picture of a line of lamborghinis parked outside the conference, the biggest crypto conference in the world the cars were put out there bay dealer because these flashy cars have become the favorite splurge of bitcoin millionaires and are seen as the ultimate status symbol in the crypto community robert frank spoke to the ceo of lamborghini on why he thinks this younger generation is buying this car. >> i personally do believe that it's connected to the profile of the young generation that are investing in these high-risk investment therefore, i see the parallelism between, you know, young people that are really willing to become very rich with a very high-risk investment with the fact that our customers are very young. therefore, that's, i assume, is the right connection between these two things >> it is a genius marketing stunt to put these lambos all
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around town boecause if you follow twitter, it's always the pictures of lamborghinis saying they have arrived. i've never seen this many lamborghinis, the assumption being that they're owned by the crypto boys and girls. >> but they're owned by the dealership >> a little temptation speaking of the consensus conference, that's where we find sima modi. the fed is now weighing in on bitcoin. tell us about it >> reporter: hey, tyler, before we get to the fed, those lamborghinis serve as a reminder to everyone here that despite the 35% drop in bitcoin in 2018, still a number of people made some pretty nice money on bitcoin in prior years but it's not just the crypto bros that are here, as you mentioned. the fed is no longer ignoring bitcoin. st. louis fed president took the stage in front of a packed house of cryptocurrency enthusiasts. i asked him whether the fed at
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some point will launch its own coin here's what he told me >> well, we can certainly look at that as a possibility and there are different parts of the fed that look at all kinds of applications of block chain technology, but i wouldn't say there's any plan at this point or anything imminent my own personal opinion is i don't, at this point, i don't see what the gains would be to the fed from that, but i'd certainly keep an open mind. >> bullard also referenced the volatility in bitcoin and cryptocurrency say that remains the biggest obstacle aside from cryptocurrency, block chain, the underlying technology getting a lot of buzz. fedex ceo frederick smith took the stage and spoke about how block chain can transform the logistics industry and i've spoken to a number of executives that are using big words like revolutionary and game changer to describe block chain and the
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implications it can have on their respective industries, but i got to say, still no company here that i can find that can say profit margins and revenue will increase by x percent because of this technology, which i think is a testament to say just how we're still in the very much early innings of block chain. back to you. >> yeah, seema, today, hsbc said they did their first block chain transaction, which is a real milestone in the industry. >> reporter: sure. absolutely and i think that's the big question, when will wall street truly play a more significant role in the evolution of cryptocurrency there's been a lot of reports about goldman setting up that crypto desk, maybe even jpmorgan as well but we haven't gotten confirmation of that perhaps soon >> seema, thank you. estonia doing their own cryptocurrency >> you know, estonia has always been on the forefront of technology they moved to online voting, digital voting very, very early on so, not surprising but a fact.
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by the way, consensus is going on all this week so on fast money wooer, we're kicking our bit tocoin week. we speak with a former citi trader who now runs one of the largest cryptocurrency traders by volume. a week full of big guests. >> sounds cool all right. still ahead, he owns a sports franchise, casinos, and a major online betting operation who better than tilman fertitta to react to the supreme court's historic ruling on sports gambling that happened tay 'sext.
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hello, everyone. i'm sue herera here's your cnbc news updates at this hour. israel's military says it has carried out five air strikes in gaza after militants exchanged fire with soldiers it says the strikes hit hamas training camps that group rules gaza and has been leading protests along the border with israel at least 52 palestinians have
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been killed in those protests. in an interview broadcast by australian tv, former secretary of state hillary clinton spoke of her concerns regarding the trump administration >> i get more concerned every day, because there doesn't seem to be, you know, much of a coherent plan, that what the president and his administration do on a day-to-day basis is hard to follow and figure out where it's leading >> and margot kidder, who starred as lois lane opposite christopher reeve in the "superman" franchise has died no details on her death were given. she was 69 years old you are up to date that's the news update this hour michelle, i'll send it back to you. >> she was the best lois lane. >> fantastic, thank you. >> a gutsy gal
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our next guest has a unique view on the supreme court decision paving the way for sports betting in new jersey and other states tilman fertitta is the owner of the houston rockets and the ceo of landry's and the golden nugget is the gaming part of his hospitality empire he's also of course the billion dollar buyer right here on cnbc. tilman, what a perfect day to have you i want to get your reaction to what mark cuban said earlier on squawk alley today he said, as a result of today's ruling, i think everyone who owns a top four professional sports team just basically saw the value of their team double tilman, you not only own a team but you own casinos too. is he right? did you buy those rocket right at the perfect time? >> this is one time, you know, i hope mark is right but mark may get a little more promoter in him than me but i think it's definitely going affect the value, because it's all about eyeballs and are you going to bring a few more
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eyeballs to the game, yes, but remember, there's already a black market sporting market, you know, out there, and you're not going to be able to go to a game and bet on a game at a game, and what people don't realize is even though this has been pushed back to the states, there's still going to be a lot of federal regulation, okay? so, mark is right, that the teams are going to be worth more gosh, would i love to think that my $2.2 billion goes to $4.4 billion today do i hope mark is right? yes, but i don't think that's where it really is but do i get a bump on both sides from the gaming side and the sports side? definitely, i do >> all right it's great to be an american, isn't it let me ask you about the stock performance today. wins, negative it's a really mixed performance for some of these gaming stocks. why do you think that is why the basdisparity? >> well, 100% it's because wynn's exposure is in vegas and people are already betting in vegas, and so who's going to do well here is the regional
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gaming for instance, if i was a public company and i didn't own 100% of my golden nugget casinos, my stock would be running today, because it's already been approved in mississippi. it's been approved in new jersey and i have casinos in both of those markets also and so it would have a huge effect on my company if it was publicly traded. now, the value of my company went up today, for sure, but wynn doesn't have regional casinos and therefore, his stock is probably being hurt because somebody might not go to a super bowl party in las vegas now because if they're in new jersey or mississippi or some of the other states that it's been approved in. so, regional stocks is where to go today >> so, if i'm reading between the lines of what you've just said, tilman, it is that the casinos probably have -- stand to gain more than the sports leagues stand to gain. that's number one. but number two, what is the sports leagues' piece of the action here? are they going to expect to get
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some sliver of revenue out of the betting revenue stream and if they do, what is their leverage to get it >> well, now remember, you know, i'm going to see adam today at the game and i'm on both sides of this, and i want to see everybody work everything out. >> i'd love to be a birdie on that conversation. >> so, first off, you know, in vegas, the law is not going to change all of a sudden, you're not going to get an integrity fee. it's been one way for so many years. now, this is when the feds could come in and congress and help legislate something but if not -- and i think that's going to happen. everybody thinks everything's been pushed back to the states it has not been 100% pushed back to the states. i can guarantee you that congress is going to stick their knows a nose and head in the middle of this so the integrity fee for
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content, could that happen yes. but everybody's got to remember, when we're sports books, our margins are very low we make 10% on both sides. we can't always even it out. and we have very high expenses to operate these books -- sports books, so you're really operating with like a 3.5% to 4.5% to every now and then you get lucky and have a 5% year so it's notlike we're so flush. but what it also does is it brings people into the casinos who spend money in other ways, and where the home run is going to be, honestly, it's going to be online. that's the big black market today. it's probably a $200 billion to $300 billion business, all these online companies set up in central america and south america. now all of a sudden when you have a huge online gaming company like mine in new jersey, where it is regulated, all of a sudden now that is where somebody can say you know what i can go online if i'm in new jersey and i can make a football
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bet, a basketball bet, it's going to -- what brent musburger said earlier, for final four and the world series and the super bowl is going to be huge where right now in, like, my big lake charles casino, it has no effect the super bowl party where in vegas, it's huge it's one of the biggest days of the year but where the big movement is going to be is in online gaming. you can watch that and book it >> i was going to ask about what the tax implication of this is we always hear that if you to this, man, the states are going to make a lot of tax is there a danger that the states or feds will come in and overtax this and that it will then force the gambler back into the underground? >> like what's happened with marijuana in some states >> no, i don't see the feds coming in and trying to get a piece of the action. >> but the states will >> on the tax side the states will, but you got to
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remember, in like louisiana, i'm already paying a 25% tax in atlantic city, new jersey, i'm already paying, i believe, a 12% tax or 10% tax so if i do an additional, you know, gaming of $100 million, it just me, that's still $12 million in tax they're going to pick up from just me and in louisiana, 25% and mississippi, i believe, it's 9% so, the states are going to definitely make more money if you just take that $200 billion of black market, you're going to -- states are going to make more money but is it the windfall that everybody thinks it's going to be? no are states like texas going to all of a sudden -- it's still regulated gaming you don't have gaming in texas today. they didn't even pass it in the last legislature in louisiana. so, everybody thinks it's this giant windfall and you're going to be able to do it everywhere, and it's basically going to be regulated just like gaming is
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today. >> well, i am so excited for tonight's game one of your playoff between the rockets and the warriors, and if i -- if there was sports gambling in america, let's just say if there was, i would bet on the rockets tonight. good luck. >> well, i hope that's because you really believe that and you're not my friend >> no, no i'm rooting for you, my good friend wally walker is an old friend of mike dantoni, your coach >> it's going to be a great series golden state's a great team and we had a hell of a year and hopefully we're going to entertain the public in a very high level >> i'm sure you will tilman, great to see you good luck. >> thank you, sir. mgm, the largest casino operator in las vegas moving higher today ceo gjim murren said mgm will win, not lose market share when legalized sports betting happens
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outside of las vegas at a recent event yesterday, you told investors that you viewed sports betting as a $5 billion revenue opportunity in the united states overall. how do you think about what mgm could get in terms of a piece of that >> well, we've been waiting for this day for quite some time, actually planning for it and because we had believed it was going to be overturned and as i think you know, mgm is in many states in the u.s. so we have already established the architecture to deploy sports betting as soon as the states allow us to do that. and i would think, given our decades of relationships with the league, with the teams, and in, of course, nevada, that we will be a very significant player, if not the largest player in this market. >> are you basically telling us that you can flip a switch in the states once they give the go-ahead >> yes, we can we have already the software
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we have our mobile app called play mgm that's already activated in nevada. we have, of course, we're the dominant player in almost every market that we're in, including atlantic city, by the way. we gone borgata and of course in mississippi and in michigan, and in maryland and of course in nevada, and we're opening up in springfield, mass, in a couple months, so i think you'll find us throughout the united states very quickly >> you obviously believe or you've thought through that there is the revenue potential in each of these states, so what does your model tell you you built all that infrastructure out for a reason. so, let's say states -- all these states that you have the presence in, said to you, jim, yes, flip the switch, jim. what would that mean to revenues for mgm? >> well, what first would happen is you'd see significant footfall into our casinos, which would have a revenue impact and a tax impact for those states. secondly, because we are an
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internet-based company as well, you'd see a significant online presence and thirdly, you would get the cross marketing to las vegas where we dominate in that market, so all told, if you are -- add that together, it's hundreds of millions of dollars of profit to the company >> in terms of some of the competitors out there, jim, you have the experience of building this infrastructure out, how deep is that boat? i mean, if a company, a casino operator did not have a sports book, was not operating a sports book at all, didn't necessarily have the physical presence that you have, how difficult would it be to replicate that business? >> it's going to be hard because the first key will be developing the trust and the relationship with the regulators and the legislators and we've been doing this for decades and secondly, the trust with the consumer and as you've heard already today, there's billions of dollars being gambled illegally overseas, a lot of that money's going to come back through these regulated channels where the integrity of the game
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will be guaranteed there are many companies that will benefit i don't want to suggest that mgm is exclusively positioned here, but i believe in the bricks and mortar component is critical, so the regional gaming companies and the technology companies that have been mentioned and of course the dominant player of the las vegas in case of mgm, those will be the prepimary beneficiaries. >> jim, can you imagine a day down the road where there will be an mgm betting window at madison square garden. >> yes, i can. as you know, the fan engagement is the key the reason why mr. cuban talked about the value of the franchises going up, which i concur with, is all about fan engagement, getting people to watch these games, point to point, and to follow teams more passionately than they currently do that will benefit the teams, the leagues, and the consumer itself, and once that is
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possible in the united states, as it is in europe and other parts of the world, you're going to see a significant presence, and in many cases, mgm may not have, you know, a casino in that state, but certainly we'll have a major presence, and that's the big opportunity that we see. >> jim, we appreciate your time. jim murren is the chairman and ceo of mgm resort international. >> thank you very much he's one of silicon valley's most well known investors. he joins us live on the state of vc funding and a whole lot more next [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv.
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you must become invisible. [hero] i'll take my chances.
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welcome back to "power lunch," everybody. silicon's valley most well-known investor, cofounder, his firm vc, raised $640 million for a new fund we have that exclusive with josh lipton, josh >> thank you for joining us.
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you had more than $1.5 billion under management one interest that area is sequencing technology, why does that area as an investor excite you so much? >> sure. there's two areas in our economy. it's one of the most broken areas of the economy if you look at what we're doing in adventure capitalist is aligning interest with the top interneuros. the two areas in health care we have to work on, one, it's that it's costing way too much.
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are you impressed by their efforts? >> they are smart people, and some of the google efforts are cool, and i -- i generally don't think they are getting to the heart of the challenges, beyond providers and payer side it's just really hard enterprise challenges for how you capture data and make it work better in a way that both helps patients and uses market forces to make it cheaper that's the enterprise problem they never worked on in their lives, and i don't think the answer comes from them there, and the other side what matters are the top scientists, pairing up with scientists, and google is doing a little bit of that, but the other is not in their dna not solving the important problem. >> you are an another vizor, and reports that the iaea is relying on software to verify iran's
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compliance for the nuclear agreement. when you founded that company, is that how you imagine d the software being used? >> that would be really neat if that's the case, which, you know, i don't have the clearance for them to tell me about that, but that was the goal to help power the agencies allied with the u.s. that protects civil liberties and solve these problems >> and you started this back in 2003-2004, talking about a company that's around 14 years old now. at that point, most startups cashed out with an ipo why haven't you gone public? >> i wouldn't mind if it goes public in two, three years, probably the right thing to do at some point, but that's up to the rest of the board behind the company and they are focused on problems they are solving, and not cashing out and making money. >> joe, thank you for the time today, we appreciate it. guys, back to you. >> thank you so much, josh all right, time now for "trading nation."
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looking at home depot, leading the dow, last month, up 10%, a big week of earnings tomorrow before the bell. can it continue the hot streak we have the group at high tower advisers >> the charts are bullish, they tell me to buy they signal the uptrend is continuing here's how i get to that point there's thee key take aways. first off, chart it. here's what i'm looking at here it is -- there we go. going to this one. >> yep >> point number one, home depot's 200-day moving average still rising, indicative of a stock on the up trend. weakest seen since january, above the average, holding that support level, up trends in tech, and finally, point number three, moving above $180 this is the first higher high
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for home depot since the correction started add that up, it's a pull back and up trend with the inflection all signs pointing to resumption of the up trend for home depot >> technicals bullish. michael, what do you think in terms of fundamentals? >> i agree we separate in two aspects if we look at the first aspect, what's the macro economic theme, and from that stand point, it's strong construction's strong, home spending is strong, and the economy's infrastructure is built out. we move directly to home depot the fundamentals are there they have a great management team, trading at twenty times next year's earnings, 2% dividend yield own short term, long term, and everybody knows that any construction that's done, home depot is a part of it. >> okay. fundamentals and technicals, thank you, guys. >> thank you >> for more, go to and follow us on twitte twitter @tradingnation don't move because check please
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check please today, on cnbc talking about tesla, like my new ring tone >> dumb questions are not cool >> i love that >> i wish the people calling could hear the ring tone that would be more useful. >> i'm talking about sports betting because i have a 12-year-old son who is, number one, hooked to his telephone all the time to play fort knight and also a huge sports fan, most especially of the nba and the nfl. putting those two obsessions together with a betting app is going to cost you a lot of money. that's all i'm saying. >> i got to be tough oh, my gosh. we have the ceo of mgm in the
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idea the state he operates, they could flip a switch, the state said, yes, legalizing sports gaming, saw the stock take the session highs during and shortly after the interview. we'll see the ramifications of it all >> i have to tell you issue everyone's giddy today about this >> uh-huh. >> and i am skeptical it's going to produce nearly as much money -- >> that's what we drove at - >> right >> 2% of the totally gambling take in las vegas. i thought it interesting that i tilman said, hey, this brings people in for special events like the super bowl or ncaa final four and benefit from extra spending >> tbd thank you for watching "power," and "closing bell" starts now. i'm wilfred frost, dow looking to stretch the win streak to eight sessions as they prepare for another round of earnings from the retail sector. i'll give you an in-depth look at the charts behind the
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market's best start for may in nearly a decade. >> we're at cnbc headquarters, historic ruling that could change sports and sports gambling forever >> i'm david faber in new york, cbs goes to war with the


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