at ge. did you have to change the culture away from ge in that respect?argaret: it is interesting. i came into ge midcareer. i never felt like i was held back because i was a woman. i think one of the good things of ge was always driven by meritocracy. so i never felt like i was held back or my voice was not heard because i was a woman. i would say i mostly did work for men my entire career at ge. i think of one particular situation when i was fairly new to the company. it was a meeting with janet -- with jack welch, and it was my early days. just being in the room with jack welch, you are like, wow. my leader at the time, i would tend to sit in the back row. that is what people who are diverse do. maybe no one is going to notice me in the background. the person i work for said, margaret, you belong at this table. i use that example a lot because it is so important that people who lead people are sensitive to those types of things. he gave me the permission to come up to the adult table, as i like to say, and be part of the conversation. my confidence lev

people were not all happy about leaving ge at the time.ne of the things my hr leader and i talked about is how do we keep our employees engaged in the process and what are we going to do as the leadership team to make sure they are coming along with us. we did hundreds of roundtables. we went out to all the sites. david: there is a lot of talk about culture. you said ge had a strong culture. what did you decide to keep and what was ok to leave behind? margaret: i think one of the things about ge is delivering results. we brought that with us. aside from that, we really wanted to create a different feel inside the company. it was interesting because we did the ipo in july, and i brought my leadership team together and said we are all going to work on culture. they were not all looking -- they were looking at me like what? i was like, we have to create who we are as a team. we spent a couple of days together and brought people in from the purpose institute to think it through. we came up with our values pretty quickly. david: so you listened

david: you sold things that are part of ge's history.erepresident worse it -- to say to you, come in is a cabinet officer, what would you say? >> are much or i would make a great public service -- servant. >> would you fix your tie? >> i don't think people would recognize me if i fixed my tie. i'm going to leave it this way. i do not consider myself as a journalist. of being ane life interviewer, even though i have a day job of fourth running a private equity firm. what is it that makes somebody ck?e -- ti after 16 years as the ceo of ge you have now stepped down. it is a burden off your shoulders? >> i feel if you are doing your job well you feel ownership and you wear that 24 hours a day. time.rs is a long i am starting to feel a little decompression. david: do you think it is too long to run a company? >> that's a great question. i think there is a right time in a wrong time in terms of doing it. accompany our size, you need to run it long enough to be able to make a difference. it has always been our philosophy to give a ceo tenure.

moving onto ge we know ge, here is the chart. interesting thing.ok the same but they are not. ge this stock, of course, really starting to get into trouble about two years ago. we've got this spread between the market and ge. i want to sort of drill down on the current action and see if this is the makings of a genuine bottom that has the look to my eye of something of head and houlders you can see it there the next chart i want to zero in here is the five-year chart, two-year chart with the linebackelines drawn. i put in the trend line to see where it might be headed just to get back to the trend line would imply 1750, unfilled gap around the level 18% off the bottom that would fly another 18, 19% to go. i think you've got to do it even if it feels late i don't think it's late. it's still early. >> carter comes over come on over, carter brian will bring the chair thank you. >> it's hard to chase things once they move you feel like you miss it. that's what makes them often go further. there's a serb percentage of investors that said i missed it, i

it's a nice alternative to ge. i have been advocating over the last couple years during ge's decline, if you're a portfolio manager looking at ge, you're always going to look for alternatives at honeywell, it absolutely fits went down to $140, that was a great opportunity to buy some. it's trading near $150 now >> let's step away here's what else is coming up on "the halftime report." >> do you want to bite into today's call of the day? see why one analyst says hold the shake shack. that's next. >>> before the break, our data partners at kensho on what happens to target shares after a quarterly miss it's not good if you're long the stock. it's down 8% on average. and it falls in the next week 100% of the time for more, go to cnbc.com/kensho. "the halftime report" with scott t tde ibaherarss ck in two minutes >>> welcome back to "the halftime report. i'm eric chemi news alert out of the nfl. league owners just approving a new measure to force all players who come out on the field to stand for the national anthem, gi

. >>> ge is up in the premarket.he company reached a deal to merge the transportation division with wabtec the latest in a series of moves to prune the portfolio shareholders will get a 50.1 stake in the combined company, david. as you said, likely more to come. >> yeah. we've been talking about for some time ge is looking at the entire portfolio you had a number of new directors come in. the guy who ran data for many years. they're taking a look on things. what i heard, the company is moving what conceivably will be a far larger announcement about its future that might involve other potential divestitures we've said this -- i've been saying this for months this, however, is one that many anticipated, jim, would happen, but the sense is that the price that they're at least -- according to the business, it's a reverse morris trust it won't be taxable to ge shareholders who will own 50.1% of the company and get a payment to ge, as well, from wabtec, this is a number they say, above, what analyst said estimated the busi

hope springs eternal for ge power. understand the bear thesis the bears need to wrap their heads around ge. geo p geo politics is now giving flanery a huge break if he doesn't, frankly, that is inconceivable to me. but then, again, inconceivable was the province of flanery's predecessor, not flanery himself. stick with cramer. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. >>> let's be obvious that is the theme of tonight's show an obvious oil stock, how about general electric because oil stocks are going higher entertain the idea of buying chevron or schlumberger. i suggest you buy raytheon still way too low. lockheed martin will work. defense and oil because of what is going on in the middle east normally i would say that is way too stupid but not in this market in this market, it is just right. >>> i like to say there's always a bull market somewhere. i promise to try to find it just for you right her

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clearly there's a lot of talk inside ge that they still need to repair cash flow.s interesting is that the deal yesterday, people are saying i miss represented his cost cutting targets that he wanted to get rid of $20 billion of assets over the next year or so or two years and that doesn't necessarily equate cost savings. you know it's kind of a lame thing to say because listen, you could theoretically get rid of a $10 billion asset for a buck, and you're halfway there. i'm just saying that. the proof, the real proof here is in the amount of money and cash flow you create from these deals. liz: i do want to make clear for people who don't understand. last time they did a dividend cut they went from 31 cents to 10 cents i believe, quarterly. so people who had a lot of this stock and depended on that dividend to pay them cash have watched that dwindle, dwindle, dwindle. but if you're one of the wall street type of people, you look at this and you say all right, they're getting their act together. that might be what's positive for the stock. that's what you're saying?

. >> all right, well, let's move on talk about ge. the widely followed analyst on that stock, steventusa from gm morgan has reiterated his underweight rating on that stock today. he says ge capital remains an underappreciated risk. there's the stock, not moving a whole tremendous amount. it's yet another, guys, reminder though from tusa, who is oftolla time where people were thinking perhaps the worst is over, in his mind, maybe it is not. he has an $11 price target on the stock. >> well, pete's got an even lower price target >> others have single digit numbers, pete. >> i mean, quite honestly, the one thing we point to is look at the massive amount of debt there's enough headaches right now that ge has to deal with, i think, from where they're sitting and they're going to do their best they're going to try to sell off assets and raise money and do all sorts of things. in the meantime, why do i want to hold on to ge because of that, you see it just kind of -- it goes up 1% one day and loses a half percent for the next four or five. th

shares of ge and lab tech both rose in today'sg. trad ge is up 10%, by the way, over the last two months. >>> from a stock that is rising to a sector that is falling. consumer staples is the worst performing group this ar. th sector is down 13% while the s&p 500 is up 2. this a sector to steer clear of or are there torgains waiting e bought? here to talk about that is nancy tangler, chief investment officer at hartland international. welcome back. nice to see you. u, >> too, sue. >> are you finding value in this particular area? because it has been a really rough patc >> it has been, and as a value manager and someone who i contrarian by nature, i would like to say -- i would like to pounduthe table, i'm still concerned that there's structural change going on ith group and it's not helped at all by a stronger dollar. so there are a few places we like, but not the entire group. >> why have they gone down? what happened? >> hey,bill. good to see you. >> you, too. >> so i think a couple of things. certainly there's a pricing -- there's

. >>> ge may try to get smaller by merging its rail unit with another train company. lava continues to spill from hawaii's mt. kailua volcano. >>> and a big win for fox as deadpool 2 takes a big spot at the box office "worldwide exchange" begins right now. nothing like a little calm, peaceful acdc to kick off your monday i am brian sullivan. it is a good morning for your stock investments. futures are up big on the softening trade rhetoric around china. here is what treasury secretary steven mnuchin said over the weekend. >> we're putting the trade war on hold. so right now, we have agreed to put the tariffs on hold while we trying to execute the framework. the president has been very clear since the first meeting with president xi in mar-a-lago that we are going to reduce the trade deficit. we have an agreement with china they will substantially agree to it we just comment that ultimately these are not government to government transactions. it's not a giant purchase order with us. >> and if you don't think words matter, they do. we're indicated now to open up 230 poi

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just when you thought it might be safe to buy ge shares cratering, stock seeing the worst session in a decade. did any other traders buy this dip. speaking of carnage bitcoin bloodbath, what is behind selloff. brian kelly has clues. later the president of coinbase is back with a major announcement that will impact anyone who uses his platform and the entire crypto space as we know it. he will join us live but first we start off with the fed to the rescue, stocks sinking at the open. then the fed minutes came out and the message was simple we got your back, market the dovish comments a lift in particular is this return of easy mope trade and is the fed put alive and well again guy. >> part of this past -- i hate to use the word. >> in the context of this conversation because a few weeks ago on thus before the jobs number, we had talked about modest wage growth bullish for the market don't fade it. here we are some 110 s&p points higher now you've got the feds modest overshoot in inflation helpful their words not mine if the fed is not going to be your faux, itoe, it's going to ally vi

this man put all of his money over the years he worked at ge into ge stock. worth of stock. now is got $200,000 worth of stock. the same number of shares. he's wearing about how he is going to live in his old age. does he have to go back to work? i have to ever one thing is a capitalist. my decisions -- remember one thing as a capitalist. my decisions are going to impact a whole lot of people who are betting on me doing the right thing. that is the awesome responsibility we have as capitalists. depot goeople at home to work everyday. they are well-paid. the thing i love most about our company, we have 3000 kids that just got out of high school. they started pushing carts in the lot. that is their job. every mold -- they are multimillionaires today. that's capitalism as it is supposed to work. david: indulge me for a second. i loved your book. there was one page i love the most. that's him in the middle, tom murphy with ken langone, mild boss. -- let meost humble tell you what happened with him and stan burke. they were out of the same pot. murphy walks in to

ge is the only one tlas currently underperforming.was up 9% yesterday and gave back nearly all of its gains today after the ceo gave a poorly received presentation really poorly. he told us that earnings from ge's power division would remain stagnant this year but their turbine gas ghiss would remain flat. no surprise. after being asked about the dividend he gave a wishy-washy answer if you took profits on ge yesterday you had a phenomenal trade. he uses three indicators to determine when something should be boughten. look at marathon pete. i like that name this is the money three, the cmf. it measures the buying and selling pressure it tells you whether they are big buyers are accumulating or dump then there is the level of strength index that tells you how a stock has been performing compared to the s&p 500. it's relative over the past six months at the bottom there is a power gauge, a propride tool which takes fundamental and technical inputs and puts them into a reading of red or green. has changed changed, based on this chart he

and that's, essentially, what ge, a senior official at ge reiterated -- liz: wouldn't that mean everything'sspeaks to the situation that they're in. listen, the analysts -- i would think, i think the analysts come out 70/30 on this. 30% think it's a buy opportunity because the stock's going to 20, that they've hit their low. and you could see some of that in the options trade. there are, you know, people are buying options betting the stock is going to go up. then there's about 70% of the analysts, jpmorgan, bank of america and a few others saying, you know, this company has so many problems that they need, that they have to cut the dividend in the short term. they have a debt problem, they have a pension problem, and they need cash flow. and, you know -- liz: this is a five-year tearjerker here. >> right, right. so they have to cut the dave dividend. when -- if the dividend's on the table, then the lighting business is obviously on the table. but what we hear, and this is a good story -- and we should put, could we get a one-day this? want to see where the stock stock is at right now. liz:

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that makes up 29% of ge's revenue.see weakness in the market which does include these turbines. him coming out saying this in the presentation in addition to saying things about that surprising insurance chart they took in january, that skewed investors. he says the problems will probably not go away in the future. that is not good news to investors. shery: fair to say, ge does have units that are strong still. like aviation, health care units. kailey: he did say those units are doing better. trying to put a positive tone on these things. power is a big heavyweight here. you can't dilute to that too much. david: we will continue to follow ge. thank you so much, kaylee. -- you can sign up for the balance of power newsletter at bloomberg.com/politics or get the latest on blow -- on global politics in your inbox every day. it is etf iq,up, the first show dedicated to the change rate of fun spirits carla who looks at whether strategies are that smart after all. if you missed out on any of the charts we showed threat the pr

and ge, if you have a strong stomach.oney" ahead don't miss my exclusive with addco to see what is ahead it is a bank, is it time to buy? i am not going to mention. talking with the ceo and all your cars rapid fire and tonight's edition of the "lightning round." stick with cramer. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. >>> how do you parson earnings report in this market. here is the stock that has been pummelled. you can understand why if you are worried about the impact of a trade war, agco is the kind o company that could be hurt let's not forget the eu too. then they come

now another sort of interesting situation at ge, just tells you some of the pressures that mr.nnery has among these, his employees, his senior executive team and even some people, some former ceo's where when i heard about a month ago he held a meeting with senior executives and former ceo's, former executives at ge who are now ceo's of other companies and he was basically given a warning that he has to move fast with his cost cutting plan because there are real problems at this company with cash flow. high debt levels, cash flow problems, and on top of that, neil a massive pension fund liability so clearly what we're hearing today is everything is on the table, mr. flannery could turnaround and break the place up but that dividend is not off the table. that is on the table, if things don't improve. that doesn't mean he'll do it but it's on the table back to you. neil: that is precious to the widows and orphins right? where do they go? thank you, buddy as always. meanwhile nancy pelosi saying in this whole north korea stuff, kim jong-un is doing okay. take a look. >> i think it

stock hasint, ge's been transformed.ke a look at this we see the big downtrend on lots of the disappointment around the company. right now, the stock is starting to put into the bottom. investors are really liking some of the improvements this company is starting to show. again, making good on one of the promises and simplify. >> lots more to come. ge transportation is complex for us. >> this is one of their smaller businesses. very profitable. nearly a 20% operating margin. there is mining and digital mining. relative to the locomotive business it has been in a downtrend. hurt by an oversupply of trains. it is expected to recover. that could really help these companies. as they still have the stake in the combined company, they are allowed to participate in the upside. another point would be in terms of futures been out, will they actually create combined companies? >> thanks. caroline. >> fascinating. now, time for bloomberg business. some of the other biggest stories in the news right now. debt while it is trying to b

it depends on how ge pitches this.ave a significant breakup and they say, we were -- are not the company we were. we need a strategy for that. maybe there is something to that, a fundamental rethinking of their identity. company'srespect the history, not respect it. i quote him. the merger, is this a blueprint for how to section off pieces of the business and operate going forward? brooke: flannery said it today, this is what you should keep an eye on in terms of going forward. it has the cash aspect, which is good for creditors, it has the spin off aspect, which is good for shareholders. so i think that will be something that they will look at for more business. he said he could've sold transportation for cash six months ago, but did not think it was an attractive price. julia: brilliant, brooke sutherland. coming up, second thoughts on a trade truce. president trump backs away from an agreement with beijing, maybe. we are live from capitol hill. this is bloomberg. ♪ scarlet: this is "bloomberg markets." julia: presid

matters, despite the fact that he involved himself in ge matters, set correct? >> all my team takes the request and requirements regarding this seriously. >> thank you. i want to turn to diane jones, the official responsible for making the recommendation that determines whether a cics is reinstated as a legitimate creditor. the remind you that a cics accredited itt tech and corinthian, two of most fraudulent institutions in recent history. are you aware that mr. jones was the president for american liberal education pgh so, where the court has ordered us -- senses in the middle of consideration and litigation i cannot discuss the matter further. >> are you aware that aal e lost its recognition by the accrediting agency despite mr. jones opposition? >> i am. >> are you aware of the prior role with the aal e was not disclosed in the financial disclosure paperwork? >> again, i've stated before and again that all my team takes the responsibility seriously of the ethics agreement seriously. they continue to operate within them. i'm confident of that. >> i'm just aski

just remember this is all about cash flow with ge.ly way to improve this company is to get cash flow. one of the biggest, wet ally cash flow out of ge is the dividend. >> arrigo. kelly, thank you very much for a lot of breaking news. i hope everybody was tuning in. go to the website for all of charlie's work. the closing bell will ring in about nine minutes. it's the first day of fleet week. stocks will help the portfolio get into shipshape. countdown we'll be right back. it took guts to start my business. but as it grew bigger and bigger, it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet? where we're changing withs? contemporary make-overs. then, use the ultimate power handshake, the upper hander with a double palm grab. who has the upper hand now? start winning today. book now at lq.com. t

the narrative changed in ge. when he was down at 13, folks called for single digit. mario gobelli came in and talked about numbers. it's amazing because he talked about the flat profit specific to the power unit. he didn't get a chance to talk about the 6 billion, $7 billion of free cash flow. it is not as bad as it looks, but the narrative did change from a months a ago >> ge used to be a corporate bellwether, they lost a lot of influence in the market over time right now, what is the stock you're looking at most closely as the indicator for the health of the overall stock market? >> i will agree with you that ge lost its luster, but it's still in our essential 40 portfolio. the bellwether used to be apple, but now i look at amazon amazon provides a lot of sentiment. i know the tech sector has been favored, by if you can watch amazon or nvidia, those volatile tech names, they give you an understanding of investor appetite it's an interesting play above $600 and still has more room to run. what are you watching today? >> i'm focused on the ten-year note and the two-y

ways, having the power of ge, the executives, is important.in the community? mayor walsh: yes, and we think they would be. having a company like amazon come to boston is exciting. tom: what does boston do to get to where it needs to be should amazon put their second headquarters here? mayor walsh: we are working on it. it is not just roads and bridges. it's education and schools because people want to live here. it is housing. we launched an initiative to create 3000 low-income units by 2030. it is about housing. that is the infrastructure we have to look at. one of the things i heard about amazon, when they went to seattle in the beginning, the housing product was not there. we are doing that in boston. our goal is to create more housing opportunities for boston, and i am partnering with our cities and towns adjacent to boston. that is important to any growth. companies are going to look to an area like boston and ask about the housing stock in the city and surrounding communities. that is important. tom: if this is a tech revolution boston i

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ge will merge its century-old locomotive business with a tech valued at $11 billion.going to maintain a majority ownership in this tie up. >> that is right. it is a complicated deal. what they are doing is selling assets to wabtec and taking other pieces left over of the locomotives business and merging that with the wabtec and their sold assets, and then shareholders will own 51% but they will be largely passive. wabtec will keep the name. it will keep the wabtec management. >> ge shares are falling the most in six months. the ceo flannery is not finding it easy to sell turbines. >> that market continues to be very challenging for new gas turbines. >> what did he say that really rocked investors? the last earnings report that came out actually seemed like he was getting things back on track. >> the comments people are pulling out of this is there is no quick fix in the power market. which to me, that's really not be news to anybody. ge has been clear they expect weak demand in the power market through the next couple of years. today, he said through 2020 they are not

what do you make of ge this morning?> you know, that's a company that's a bug in search of a windshield i like what ceo is doing but the problem is -- [laughter] >> that was good but of laking here that was goods. >> thank you. thank you coming from the left bank i have to do something for a living riewght. here's the -- thing about ge is that thing has been a disaster for a long time stuart i'm not ready to place they trust in that stock i don't care what they sell off or how they do it until they get revenues back and ceo really gains his footing it is nothing more than a rift or speculation at this point not the investment or coveted dividend it used to be. paid to company as evil kind of company very much opposed to there. but look at this stock is up 1% this morning. what do you make of google? >> oh, i still think this was a great piece pure and simple laws are created to deal with antitrust associate with manufacturing 100 years ago. washington is outmaneuver out negotiated strike outis strategd because it is not

. >> i'm hoping for royal riches with ge. bought it below $14, traded right around $15 this is a major line in the sand, $15. i think there is a major upside from here. ge >> b. k. >> for me you want to take a look at what they do the royals, financial powerhouses. i would look to the major financial powerhouses, xlf >> i love the paypal i would be a buyer >> the old lady is getting on a boat do you know what she's getting on the caribbean. >>> see you back here monday don't go anywhere. "options action" right after this at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse your house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it r

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ge shares came up with their worst one-day performance in more than nine years john flannery said get guarantee the dividend at 19 and expects no profit growth at ge power this year and sees the power market remaining weak through 2020 i mean, all of the analyst reports look at sort of no positive narrative being spun and of course, not explicitly. >> i do want to offer one thing on the dividend. >> absolutely. >> we knew it would not have a near-term bounce and he was sober and realistic, but it may have been reinterpreted, and speaking to those close to the company, was there no plan to cut the dividend at ge what i think flannery was trying to communicate and when you read what he had to say and when you read the transcript, the portfolios of our company are probably going to change. >> it may not be the same company a year from now, and therefore the cash flow characteristics of that portfolio are going to change and so, conceivably your dividend payout ratio will change as a result of that and there's no plan to cut the dividend and it is not >> it's a function of cash flow, and

ge has been cleared they expect weak demand in the power market the next couple of years.through 2020 they are not looking for a big take up. the number that stood out for me was a 10% profit margin target in the power unit. that is down from a previous mid-teens. to that is important because moody's has highlighted a low to mid-teens profit margin and that power unit as an important goal. failure to reach that could because for a downgrade. flannery said it is a timing issue but the question is, how much patience to the credit rating agencies have? >> a motor group has canceled plans for an $8.8 billion deal with an unprecedented victory for shareholders. the second biggest conglomerate to pave to restructure the way for succession but is now on hold. what are shareholders winning with this decision? >> elliott management, the active shareholder leading the fight is asking for $11 billion in cash return to shareholders. they also wanted increase in dividends, independent directors, and other steps to improve corporate governance. there is a lot there. hyundai did not say

this is the beginning of the unraveling ge reportedly in negotiations with wabtec. neither ge nor wabtec responded to requests for comment. >> it's been unwinding since they took over in 2001 >> he merged a lot of things together >> and let me ask you this there was a cohen and company analyst report that was out this morning that said this deal appears imminent and it could be very good news for wabtec, that they continue to think it would be favored for wab and believe the stock could overperform peers on monday. what does that tell you about -- >> is it silly wab at the c? every time you say it, i think you're -- >> what is it called >> wabtec. >> what does it stand for? >> i actually have no idea but my question is, if this is so great for wabtec, is it a good deal for ge, with as well >> i'm sorry every time you say it, i think you've got something silly wabtec do we really want this >> rabbits >> rabbits with an "r. >> you know we need -- but he's gone ♪ i'm in my car ♪ turn on the radio >> elmer fudd. >> i just want you to be happy ♪ i'm driving in my car >>

crude doesn't stop and ge has a play on oil when you're trying to sell baker hughes, a ge company. little thing >> it's the logo and that's what did it, david. >> the triple doubles don't mean much >> no. it's the first he's done in a while right there. >> and i have to tell you, cleveland has to have partner or something. >> the dow's down 85 let's get to bob pisani. >> the dollar is down overall and not a good sign for the market i get asked all of the time what's the impact of the geopolitical tensions and trade talks. take a look at maersk, one of the biggest shipping companies and their earnings had a big miss you know what happened geopolitical risks hurt them and trade tensions lowered the amount of shipping overall and there's your poster child about what happens when you have the c combination going on, you'll be down a little bit so you've got semiconductors and banks lagging a bit and consumer staples which has been a laggard, and energy has been weak recently although in the last couple of months and walmart was good dillard's beat on the top and bottom line. they were

. >>> shares of ge slammed after comments about the ceo's company outlook. and tiffany's sparkle target tumbles and git giddy up ralph lauren the retail detail on their earnings as "power lunch" starts right now. >>> welcome to "power lunch. i'm michelle caruso-cabrera, stocks are sliding today testimony dow is down almost 170 points at its low. it's do you dipping in and out of negative territory for the year spotlight is retail. lowe's is soaring 10% as a hedge fund titan has taken a billion dollar stake >> and bitcoin has taken a sharp drop this the past hour or so. now over to tyler in los angeles. hi >> hi michelle, and welcome everybody. i'm live at the disrupter 50 road show here in los angeles. what is the disruptor 50 it is a very shektive process. 981 companies nominated this year autos every sector of the economy. we have pared that number down to 50, the most valuable ever, combined valuation of $308 billion. coming up, the ceo of thinks and listener and they don't spell it like you think or listen. listen shaking up how we think about wi-fi and

you remember jeffrey immelt from ge, came over, became the chairman. going to put a president in place to do the day-to-day operations, and they still have not done that. that was obviously a concern for elliott. on top of that, there was a cost-cutting plan that was meant to be put in place. obviously, we are not quite seeing the results they would like to see at this point. because of that, they think may be best way forward is to pursue a sale or take private transaction. david: how much of the elliottment between elliott management and his company is about the direction, and how much is about the pace? they said you are not moving fast enough. there are other people who thought jeffrey immelt did not move fast enough at ge. >> i think that is the case. they said they had concerns about jeffrey amount being the person they brought in as chairman. what they need now is an operating german, they need to improve the operations. history at ge maybe points of the fact that he is not the guy to do it. they voiced those concerns. they also think they need

ge will merge its century-old locomotive business with a tech valued at $11 billion.going to maintain a majority ownership in this tie up. >> that is right. it is a complicated deal. what they are doing is selling assets to wabtec and taking other pieces left over of the locomotives business and merging that with the wabtec and their sold assets, and then shareholders will own 51% but they will be largely passive. wabtec will keep the name. it will keep the wabtec management. >> ge shares are falling the most in six months. the ceo flannery is not finding it easy to sell turbines. >> sunday motor group has canceled plans for an $8.8 billion deal in with an unprecedented victory for activist shareholders. the second-biggest family-run conglomerate has plan to restructure to pave the way for succession, but that is now on hold. what are shareholders winning with this decision? >> well, elliott management, the active shareholder that is leading the fight, is asking for $11 billion in cash return to shareholders. they also wanted increase in dividends, independent directo

stuff >> so ge is interesting.ot own it i think it's a value trap at this point, and i think that this is certainly part of the plan from the ceo to divest out. this is valued at $10 billion if you exclude tax benefits, and they have the path to divest $20 billion, okay, great, halfway there, however, what concerns me is that it does not help liquidity or balance sheet and does not delever their balance sheets at this point you're going from 3.8 lever to 3 partnersh3.7 times, and that's for the company. that bothers me. free cash flow in general bothers me about this and lack of free cash flow so i want to like it. i do i want to be a contrary -- i am, i have a lot of ugly industrials, if you will - >> what could be uglier than ge? >> caterpillar at 70 i bought that a long time ago. that was ugly. now i have plenty of ugly, but it is going to take time that's really at the end of the day, and - >> and it's just a fly or ride just a small amount of capital -- >> we don't have a full position, and the type of emotion

about a little less than six minutes before we get started with trading ge was a big feature yesterday on the course of the transportation deal with wabtec. >> right now, david, we're talking about retailer let me segue to shoes. stephen tusa says that maybe we're done with the material shoes to drop. a lot of people feel that all the shoes will drop in general election electric. he questions the leverage ratio. he mentions the two words you never want to hear "dividend" and "cut" within the same sentence maybe there's something coming in terms of capital. the secret word there is "raise." but i've got to tell you, citi comes out more constructively and said the wabtec deal strikes a good balance but now you're going to have the dispositions probably be lower 5 billion versus 10 billion. >> the last part >> dispositions in 2018. there was a hope that flannery, the ceo, would have $10 billion with the dispositions. now it's more toward $5 billion. but tusa digging in his heels didn't buy this, david sticking by his $11 target tusa tieless tusa cannot be -- he's tough all right. he's not

still ge is down 18% this year.next, president trump's move making markets jittery, so goldman sachs makes a bold call saying it's time to protect your portfolio in turbulent times. what goldman says you should do now. we'll tell you in a minute. ♪ ♪ [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. you must become invisible. [hero] i'll take my chances. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to your insurance company. woman: another ding, another scratch. it'll just be another chapter in the story. every scar tells a story, and you can tell a lot more stories when your truck is a chevy silverado. the most dependable, longest-lasting, full-size pickups on

stuart: we're leaving with ge, you're staying in it. >> that is my story., every one. he is all right. >> always a pleasure. stuart: i will shake the hand. >>> we're now by the way this is a new low, down 233. 23,929. >>> okay. i'm told i've got to tap dance for 45 seconds. ashley: i will give you information. some. price index, don't want to get too technical on the ism numbers showed the highest levels in seven years. which means inflation is definitely starting to rear its ugly head which in turn could prompt the fed to maybe raise rates a little more aggressively than the two hikes. stuart: well-done, ashley. you grabbed a nugget out of that. liz: he saved you from tap dancing. stuart: we're down 240 points. what you point out is probably a significant reason for that. okay. ashley: yeah. stuart: five seconds to go. [laughter]. i have to wait until exactly 10:36. it is 10:36 now. rook who is here. brian kilmeade. host of the brian kilmeade sew. right at it, brian. the university of texas says it treats masculinity as a mental illness. do you think you a

one example that hits home to me, is in albany this morning one of our biggest employer is ge where they make steam turbines. they employ thousands of people in good paying jobs. one of the few big manufacturing sites left. a few years back they signed a 5149, they will let them sell them in china, it's a huge market. so they sign want to make them in china, 5149 with the chinese company that clearly the government is in. is great for the ceo but i objected to what he did here. they make good profits because they get an exclusive profit but then china stole the amazing technology that allows these to be the best in the world. to spin fast without overheating. those jobs are gone and that story can repeated over and over again. so i thought, good for president trump for getting serious about this calamity. i noted my views on china and how we deal with them economically closer to president bush or obama both whom i felt were far too soft. he acknowledged that in a note. now, disappointingly, maybe not surprisingly, president trump is backing off. over the weekend we saw two incredible exa

time since march 16th s&p 500 at two-month highs industrials on pace for their best day in two months ge helping leading the news on deal news there. that stock up more than 10% in may. boeing flying high as well chip stocks are joining the party, breaking a two-day losing streak the best day in two weeks. micron and taiwan semi leading the way. >> welcome let's give you other headlines in the news right here, big win for business a blow to american workers the supreme court will let companies require employees to sign away their ability to bring class action claims against management about 25 million workers already have these agreements in place prices at the pump pushing higher as we head into the summer driving season. the average gallon of gas, regular, jumping ten cents over the past two weeks to $3 on the button tesla shares off session highs consumer reports says the model 3 falls short of getting a recommendation it says despite record range and agile handling, issues with braking and controls and ride quality hurt the model 3's overall score. >> thank you we begin with the stor

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