Transcripts For CNBC Power Lunch 20170831

Pieces power lunch starts right now welcome to power lunch. Stocks extending the weeks gains and could ends up with a positive month across the board. Health care the best performing sector and financials and telecom the biggest laggards refineries shut down for extended periods in texas in the wake of harvey gasoline continues to spike as well on that supply disruption campbells soup falling as earnings disappoint and costco in the green after reporting a 6 jump in sales and lands end sinking on an etf miss down nearly 8 . Lets get you caught up on the latest headlines texas officials reporting more than 37,000 homes sustained major damage and 7,000 destroyed by the storm u. S. Navy sending two trips to provide humanitarian aid outside of the houston area, the city of beaumont lost its water supply as a result theres 180 million in damage to public property across the gulf coast counties just so far. The Vice President saying moments ago that President Trump will return to texas on saturday flooding from Hurricane Harvey spiking currently causing some issues with a power plant about 25 miles northwest of houston area and thats where we find scott cohen reported on this Alarming Development at the chemical factory what can you tell us . Reporter well, we are still monitoring this as you said, were about 20, 30 miles outside of houston in the town of crosby as you can see, this is as close as they are allowing us to get to the arkema Chemical Plant what happened is that plant, that area flooded. They got a whole bunch of water which well show in a moment this is the view from above. What happens is when the power goes out the refrigeration goes out. If some of these chemicals and peroxides are not refridge rated, they will decompose and catch fire and potentially ultimately explode a couple of tanks have ruptured and all they can do, you look at the view from above. All they can do is let the fires burn themselves out. There were nine refridge rate ated containers in anticipation of the flooding, eight of the nine at last report have failed. Ninth is likely to go any time soon that makes it inevitable that these chemicals are going to go up in flames potentially explode and thats why they are keeping us a mile and a half away and residents out as well. Heres the problem, its water, 6 feet of water they got inside that plant and in and around that plant they say thats never happened before it took out the power and took out the backup generators and thats why we find ourselves in the spot were in. Now, if you think that situation is bad, take a look at pictures from port arthur, texas, 60 miles east of me where they are still performing rescues and dealing with flooding and bringing people out of their homes in the flooded areas beaumont, texas has no water, no municipal water because of Flooding Issues and its not just a human toll. Heres the situation with the refiners, weve been talking about this all day, what its doing to gasoline prices and throughout all of the Refined Products complex the motiva plant is the largest in the u. S. , in port arthur. 603,000 barrels a day. It is out. Baytown, texas, port arthur, deerpark, all of these other refineries are out and those are just the ones that are shut down theres reduced capacity elsewhere. That motiva refinery, again, the largest in the u. S. , they are saying it could be two weeks and some are saying it might be longer before that gets online the supply and demand impact is definitely playing itself out. Those pictures you show us, scott, they continue to as stound even five days later. Good to have you now to cnbcs exclusive interview with Steve Mnuchin joining us live from washington with the highlights, hey, steve. Good afternoon, Steven Mnuchin in an exclusive interview saying the tax plan cometh despite criticism that a plan without detail. It will be released in the next few weeks. Originally our goal had been august unfortunately things got delayed a bit. But were on a track to get this done by the end of the year. So youre going to see the details come out later this month. Its going to go through a Committee Process and we expect the house and senate will get this to the president to sign this year and couldnt be more excited about the progress made. Aiming for a revenue neutral bill that wont increase the deficit but that depends on how much growth the joint Tax Committee determines tax cuts will generate. That is dynamic scoring. I asked him whether the administration already conceded it couldnt get to that 15 goal for Corporate Taxes because of how much it would increase the deficit. The president made very clear that that was our goal during the campaign, when we came out with a plan earlier in the administration, we said that our objective is to get down to 15 , wherever we end up the objective is to get a competitive business rate. Maybe a little wiggle room there. The debt ceiling still on track but the aid for Hurricane Harvey could have an impact on the debt ceiling. He is working with the Federal Reserve on and other regulators on financial Regulatory Reform not a whole much different as indicated by Janet Yellens speech and not decided on Harriet Tubman being on the 20 bill speaking of dollars, mnuchin backs the idea of a market determined dollar. Didnt talk it up or talk it down over the long term a strong dollar reflects Market Sentiment about a countrys underlying economics. Steve, i really miss the treasury secretary repeateding a statement about the policy of the strong dollar even though they dont believe it you know, michelle, i want to share a personal reporters notebook this interview provided me with a sense of normalcy i havent experienced in the political process in seven months. You sit town down with a politician and spar over details he doesnt want to provide the way so insane the last several months doing that was the first bit of normalcy since the election. Thats interesting. But the point on the dollar, thats a dramatic change historically the treasury secretary says its the same sentence over and over again for decades, the policy is to have a strong dollar. I thought about that and it is a little bit of a different twist but leads you to the same place. Hes not talking about whether or not he has a preference ultimately saying well have a strong dollar because the u. S. Underlying economics will be strong but hes not promoting it either way. I think they are kind of quietly a little bit happy with the weaker dollar right now. Dont seem to be talking it up as you know the president has not felt any restraint at all in talking about Interest Rates or the dollar. The president has said he wants a weaker dollar its better for trade something the treasury secretary did echo a little bit. Well talk about it more in terms of tax reform, what is beneficial to the economy and what is most realistic lets bring in austengoolsbee and diane swonk, founder and ceo of ds economics welcome to both of you we heard the treasury secretary leaning on congress for the fine print. What do you make of that, austen i thought the most news worthy thing in steves interview, it seemed like the secretary of treasury almost said the opposite. Theyve been saying and when donald trump gave this speech that was all generalitiy ies ano specifics, we thought they were saying lets let congress do it. You heard mnuchin say they are going to produce a plan. Thats very risky because the chair persons, chair men in the senate and in the house, they jealously guard their turf and if the Administration Says we want you to get rid of the following deductions and loopholes, something, i think theres going to be serious blowback he didnt say exactly what the nonnegotiables are for the white house. And did say the house and senate are currently socializing the plan with their members. What do you take that to mean, exactly . Im hearing something completely different out of washington weve heard the rhetoric regarding instead of reform go to tax cut frankly thats the only thing you can do quingly is tax cuts, not reform already the lobbyists are stacking up in washington. Any time theres uncertainty they flood washington and tax reform is something they are already staking out because they dont know whats going on and theres a reason it took three years back in 1986 earn started ten years before that because its hard. Reform is hard, tax cuts are easy what im hearing out of washington and even paul ryan has said they are looking at tax cuts that was a shift in his rhetoric as well, something that weve heard many people who watch the budget and are worried about the widening budget deficit, this is now really devofled to a tax cut argument, not a reform argument as good as mnuchin was messaging, theres a huge gap between people complaining that they dont know who to talk to in the administration. Mnuchin has been working with people but on other side there are people who dont know how to get the messaging on the same page as austan put, theres a real danger in studying the agenda and not having congress on the same page and having to cut deals. If theres one singular priority to get the competitive business tax rate and we heard the secretary say over and over again even as he declined to commit to the 15 magic rate that the president continues to talk about, what do you think is a competitive tax rate and whats actually realistic here austan and i something more realistic is more like 20 to 25 then youve got to eliminate deductions this is not easy to get there. Revenue neutral is not just were going to grow the economy like crazy and just because of tax cuts thats not how it works. We need revenue neutrality and need to think of tax reform in the eco system of something. Austan underscored infrastructure investment, not even being talked about right now. What do you think the competitive rate is . Look, it all depends what are you willing to give up to pay for that if you justdo it nakedly, that will cost 2. 5 trillion and then we know they want to give mortgages and improve the mortgage deduction is what paul ryan said, which means of course cut it i believe. Charitable deductions would stay, 401 k s would stay but maybe not state taxes. I dont think that that would be quite enough. Just the corporate part would be 2 to 2. 5 trillion then you have the socalled pass throughs and series of others of people hold on, diane, let austan finish. Those loopholes dont add up to enough. And the second premise that i think theyll have a hard time with is to rely on dynamic scoring, you can make a dynamic scoring argument when growth is not very fast. But when gdp growth is already 3 and Unemployment Rate is already youre telling me all of the hurdles but what were really going for. If we can go to austan goolsbees nirvana and all were achievable, what do you think that number should be . Well, a, the number would probably be for the big countries around 25 but, remember, the rate that our companies are actually paying i understand the effect i get that. In my nirvana, we would be down 25 or lower and we would have broadened the base so the amount that corporations pay would not be lower but the statutory rate would be lower. Thats what my nirvana would be. Diana, you want to weigh in on yours. 20 to 25 where it would be competitive but again it would have a lot of give ups you talked about this stuff on the personal side but corporations and municipal bonds, how do we restructure all of this and do the deductiblety on research and development. All of the things packed into the tax code have to be unpacked and i dont think thats realistic nor will it happen in my nirvana we get to a more simplicity tax code with broadening the base, revenue neutrality in a true way, not just juicy numbers this is really hard to do and it would create efficiencies that i think would over the long term boost Economic Growth and get incentives in the right place for both individuals and corporations that said, thats not whats being discussed i get it. Both of you say the number does need to be lower. Lets see if we can get there. Thank you so much. Tomorrow do not miss an interview with gary cohn at 9 30 a. M. Eastern time. Harvey could change how and where americans bureild their homes. Well look at the brewing battle between Home Builders and insurers and taxpayers next. Highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Welcome back, as water recedes there are more storms behind it but not just the big ones homeowners are facing more homeowners need to worry about water and how to keep it out. Diana olick joins us from washington reporter well, theres no way to keep a home dry when you get almost 5 feet of rain period but storms today are increasingly strong and wet. Just this month in d. C. , we had two weeks of solid heavy rain and basements all over this neighborhood had water, including mine how do you protect your house even if you dont think you have a problem . We try to tell homeowners its the water you cant see that causes the most damage. When your basement leaks it doesnt decide to leak one day theres a lot of Early Warning signs such as dampness or musty odor cracks on the walls or floor, again, some kind of discoloration on the walls, white powder on the walls. So heres what you should do. One, make sure youre sump pump is operating and install a battery backup or generator for the sump pumps have wide trenches or french drains that run into the pumps look for Early Warning signs like mr. Bryant talked about and make sure all gutters are clear and running well away from the home if you dont have a basement, make sure the property is graded away from the foundation slab. The general manager says his business jumped 50 in the last five years due to heavier rainfalls and more could nsumer concern about what a damp house does for air quality it could cost 2 to 30,000 depending on what you need and we have lots more of that online real news you can use thank you so much, diana as she mentioned, 5 feet of rain, pretty tough thats what happens in texas where we focus on rebuilding what needs to be done now to make sure future major storms dont cause billions more in damage to homes and business and infrastructure albert betts, Insurance Council of texas and Senior Engineer and professor at the Stevens Institute of technology. Good to have you here, sir. Thank you. Houston had a building boom how many homes have been built in what we know is a flood plain . If you look whats happening in houston or harris county, since 2010 you have more than 9,000 buildings in the 100year flood plain which is massive, massive buildings. And from 1993 2010, you had approximately 30 of your wetlands in houston in that area that have been converted entirely to parking lots and buildings. These wetlands are useful in observing water, not going to mitigate Something Like what happened but at least you would have less flood levels in your areas. Add to that the aging infrastructure, add to that the stressors were facing from Sea Level Rise and drainage system in the area and so on and you would have a i would like to say a a human tragedy of Epic Proportions as we have watched did. For a disaster. Mr. Betts, when it comes to insurance, a lot of these are going to be a lot of these losses are going to be uninsured. Whats going to happen there thats one of the biggest problems and let me first send my condolences and prayers to folks in houston, beaumont, et cetera who suffered losses this is a tragedy, unseen anywhere in the u. S. Lately. And the big concern is those folks probably four out of five who dont have Flood Insurance who thought they werent prone to flooding or werent concerned or thought it was too expensive. Then now faced with a total loss there are programs through fema that may provide Disaster Assistance but in terms of paying for their home, those folks are going to have to look in their own pockets now and thats a tragedy i saw a figure today that actually since the last flood in houston, fewer people buying Flood Insurance. He highlights or implies dont want to put words in his mouth, raises a question with me, why were so many homes built in a flood plain in the first place . What codes are there that would have prevented this . Are there any . Well, in each in texas, 254 counties, theres no statewide Building Code. Each individual county or city may have its own Building Code requirements, keep in mind for a flood, theres no Building Code that can stop a flood from washing away a home. The question becomes economic development, texas is a booming economy. Thousands are moving to texas each day and so its a balance between the need to accommodate the growth, the Economic Energy thats here in texas and also accommodate the safety. Albert, i mean, this is at the risk of sounding callous this focuses the question on whether or not we should permit homes to be build period in these areas. To your point about no statewide building requirements, there are building requirements in texas which allow this to happen and Corpus Christi for instance, the codes reflect the National Standards minus the requirement that homes be built one foot above the 100 year flood levels. In Corpus Christi, you can build those homes. Should we tighten that up so people arent stuck in this situation in the future . Well, i think its going to be one of the discussions after the storm. Thats probably going to happen in communities like houston and port arthur and beaumont each will have to make decisions what they want to do Going Forward. How can they keep their citizens safe and avoid these losses and balance that against the need for Economic Growth. The Flood Insurance Program Sells insurance at a deeply discounted rate. I wonder if that in some ways incentivizes people to build in places where they shouldnt be because they dont actually absorb the coast of what it really means to live in a flood plain. I mean, what that means i look at more than 50 of the homes insured by the national floored Insurance Program are in florida and texas. That means 48 other states subsidize below cost blood insurance for people in texas and florida. I mean, if that i would think if private insurance were there, maybe they would say things like, you know what, were not going to insure this home unless you build it higher. Unless the ratio of grass lands to concrete is different. Or your premium is higher. And that would be a natural disincentive to building in the areas. Should the private sector and private insurance be more pervasive, would that prevent human tragedy. The private sector is there writing homeowners coverage Flood Insurance is not written by the private sector. Thats my point. Youre right, the Flood Insurance or National Level is much lower than it would be at the private sector wrote it. Heres the problem if the private sector wrote it at the price for the risk that comes with some of these areas, unfortunately consumers would not be able to afford it and that impacts the ability to live and work and grow in those areas you see the problem here, a legislator doesnt want to change the rules because they dont want a smaller constituency they want people to move to their state, right so clearly theres no one solution that fits all in this situation. The solution has to be wholistic and its going to be take years, billions of dollars, massive investment its going to take investment in operational flood forecasting and communicating that forecast to the public. Theres a difference between issuing a forecast and telling people what that means its going to take massive investment in infrastructure, resilient infrastructure and massive investment in research we have the top schools in the world and have the best engineering and Construction Companies in the world i think we can do that we just need vision on that and need to have investment at the federal are you talking about in addition to private sector. How you build buildings et cetera, like a coastal spine like the buildings we have, so for example if you want to design a dam or drainage system, you go back and take hundred years worth of data and assume climate station which Means Nothing will change in the future guess what, thats going to change in the future and we are witnessing more frequently and intensity in these storms. Houston had 300 year or worse storms in three successive years. So which means its not 300 year storms. Exactly. They need to absolutely redefine that definition. You guys will have a tough job down there we really appreciate it. Insurance is going to be a very big issue considering what just happened there thank you for your time. Thank you, maam. Thank you so much. When we come back, job cuts would be ahead of two big dow components, disney and General Electric may plan to reduce their staff. Well have those details up next does it not like like a normal day. Whats amazing a 10foot flooded way the next day was bone dry. What does that normally look like right there its about 40 feet wide of water, its just spread out right now. This is this is Buffalo Bayou running right through the middle of downtown. 133. 05. Now you see what the issue is houston is nothing but a swamp thats what youve got to remember houston is a swamp i am shocked it looks from up here as relatively normal as it does. And that was just less than an hour ago actually, kind enough to bring us up into his helicopter to go over the city to houston to west houston as well to look at the damage and where houston stands right now. We really appreciate that tillman, thank you for offering that that wasnt even us asking you came to us because this is your town. First and foremost you have over 10,000 employees, many of them live there based in houston, first things first, all employees okay, everybody accounted for . Everybody is accounted for. First off, life is number one. But to come here right now and see all of the pizzas were cooking for the Police Department and volunteer Team Delivering to the different First Responders, the city has come together. Are there a lot of suffering and upset and tragedy . Yes. But human life was minimal its horrible but were going to get there. It is so far and lets hope the hul an toll does not go up it is so far pretty unbelievable given some of the images that we have seen where we stand from the human perspective, that is because as you explained and we came over the city this is a once in a thousand year event however this is a city that is used to dealing with not this level of storm but storms and it recovers fairly quickly. For sure. Like we just went out and flew over the addicks reservoir, this happened three times in the last 18 months. Lets not kid ourselves, we had a biblical event where you could not leave your house you can look at the footage and see were having lunch and people moving around the city. We truly had an event that will not happen again for 500 years and theres a lot of people today in houston, texas that are struggling a lot of people that life is good but theres a lot of people we need to help out in houston. I have i met a couple this morning that they lived in the same home for 26 years and said they lost everything, but that they in 26 years never had a drop of water in their home and now their home has been washed out but what was interesting about the view you gave us, as we went around, it was you know houston a little bit but its a huge city over the Buffalo Bayou and reservoirs, thats where the trouble spots really were. Im not going to use the term normalcy but theres a certain amount of comeback to the city that you can see. If you got in the helicopter and flew around and we didnt go to certain areas, it looked like a normal city. But theres pockets that are horrible i mean, but that goes back to what are we doing building next to levees . And huge what happened is houstons growth has been so unbelievable in the last 40 years and so you thank our forefathers for making city special but we probably built some areas we shouldnt have built. We just had a guest on who talked about that a little bit the one thing that was striking, very little time to cut the video, flying over these areas, they are Building Office buildings and homes yards from lev levees to your point was the city developed in kind of a bad way in certain spots i was shocked how close it was to a physical dam. When we looked at it, it is amazing and i hate to knock our city, because its such a great city and weve done so much right and thats why we are the great fourth largest city in the United States that we are. But we dont have zoning in our city so a developer can basically go anywhere and build anything. If you can get somebody to sell it to you, well build it. That needs to change. When those reservoirs were built, that was riceland and farmland and used to go hunting when i was a kid now they are these gorgeous beautiful neighborhoods and thats what was different about this flood it didnt happen in just one little area. There are pockets all over houston. If you lived on a bayou or creek because houston is a swamp, Everybody Needs to remember that you have flooding. But we see whats happening today, it is somewhat of a everybody back to work, my office, 90 of the employees are there. Were a resilient city. A lot of people will need a lot of time but they are starting to come back. Your point is everybody coming together, j. Jt watt raised a few Million Dollars and jeffries raised over 5 million an Energy Business down there and i happen to be one of their best customers and rich called me and we want to raise money and rich handler and brian and jeffries and their whole team, over 5 million. We went over last night and showed me who they were kbifing the money too. All of the great organizations in houston and think about that, friends in new york 5 million from jeffries to the citizens of the houston to rehelp rebuild. There are others. Lets talk about the underlying current of the economy because weve done the show from houston multiple times over the last few years. We talked about how houston is still reliant on oil and gas, we have refineries down 10, 20 miles east of here and energy inf infrastructure is struggling to come back and oil is stuck in the mid40s, what kind of impact will that have on the city you are the most consumer facing business in the city. I am, thank god but let me tell you what happens in tragedies and its say shame but we had a very low occupancy rate in our apartments because even though weve had this energy glut we kept Building Office buildings and apartment projects and homes all of these apartments with a low occupancy now will be full youll have construction workers come in from all over the United States that are going to fill them up. They all want to eat youre optimistic about the recovery, you think the economy will survive this . 100 . I think it could even help energy i think youre going to see manufacturing, construction. These tragedies create economic booms and its a shame thats the way the system works but it just is, brian. This is kayla back in new jersey thanks for joining us. Im curious when were looking at these pictures of highways and buildings that are under water and people want to return to work, they are safe and sound and want to return to business as usual and sense of normalcy can they actually get to the office can they get to the restaurants and places they are trying to go 100 . Some of the footage that we saw earlier, there is a route to get everywhere every freeway is open in houston except a little short area where you can alternate around it. A lot of my executive assistants that live way out by the reservoirs, they said we had to come to the office we are stir crazy if i dont get out of my house. Yes, if you want to get to work in houston, texas today and youre not fighting own calamity of your own home, which you should be taking care of, thats more important, you can get to work in houston, texas today its well run the footage and im sure well put more up on cnbc. Com. If you dont know houston, its a hue monday gous city we showed footage down in dickinson, i know it is the focus because of the fourth largest city but down where we were people were suffering because they dont have the drainage they didnt have the drainage. Im shocked at how much the water has receded. What else can you do as one of the leading businesses of houston . Youre feeding the First Responders, sending out 900 pizzas today, 5 million raised by jeffries and friends on wall street how can people help . Were just a great nation and helping others when they are down hitting all of these relief funds, mayors relief fund, anything you can do for the First Responders, whats amazing is the people that have come in from all over the country. We had a rescue team from new york down here helping but its give businesses in houston some support right now trade with houston businesses, help texas get back. Its not just houston. People dont realize, this started at the tip over there in Corpus Christi and going all the way to new orleans. Fort arthur, beaumont, those people who may not have the resources that youve got here in houston, right . You dont have the forces and police and Fire Department as much and a lot of those people lost their homes theres a lot more people impacted than just houstonians. Its amazing how we learn from our less sons and to see how organized the red cross and fema were, it was really an amazing to watch how they handled all of the people at the george r. Brown. You have to give everybody a big hand today, what weve accomplished. It is its an incredible scene and people are coming together youre helping to feed them, im sure youll do more. Ill let you get back to the help. You know whats amazing, i have 80 restaurants in this region and i was told earlier today that 79 of them will be open today or tomorrow for the weekend. Thats the resilience of the texas worker wanting to get back to work and serving people because were in the service business. Awesome awesome. Melissa, tillman, thank you very much glad everybody is safe and sound. Well see you soon back to you. Thanks. Coming up s will the biotech climb continue thats ahead first to Morgan Brennan for a cnbc news update. The u. S. Is requiring russia so close the consulate in San Francisco and washington, d. C. And new york city in response to the kremlin aegs decision to reduce the mission in russia last month wells fargo says its uncovered twice as many potentially unauthorized fake accounts than it originally estimated. The bank now says 2. 5 million accounts were impacted by the fake account scandal it says it will pay out an additional 2. 8 million in refunds to impacted customers. And a look at one of the many air rescues performed this week in houston these pictures are from tuesday as members of the new York Air National guard performed one of its 345 rescues of families and animals who were stranded in the flood waters unfortunately, theres another hurricane on the horizon irma strengthened over the eastern atlantic forecast to become a major hurricane by tonight and could become a category 4 storm by the weekend. Its too soon however to speculate on the potential continental u. S. Threat. Thats the cnbc news at this hour power lunch is back in two minutes. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. So they called the fire, yodepartment for us. Clearly, my first truck was on the scene within five minutes. I am grateful we all made it out safely. To protect what you love, call 1800adtcares General Electric, new ceo reportedly planning significant job cuts to boost profits. According to roit irz they already halted hiring in certain Technology Positions and wall street journal reporting that disney is planning a round of layoffs due to budget cuts most taking place at the Abc Television group a source telling cnbc the details of the story are widely speculative at best at this point. But that disney may be looking to target 10 of costs variety is more specific, they go into they think ad sales, marketing, kind of the other side of the coin of what we see with less advertising happening. You need fewer ad salesman or sales women going online. Automatic platforms that they have but if youve been working at disney, praptz at abc, you thought youve been safe because most of the stream lining had been happening at espn now it seems the cost cutting is going to be extending to abc as well. Yeah. Cool, lots more power lunch ahead. First to Rick Santelli with the bond report. Ill tell you what, if you look at the first day on this, we violated what has and still remains by a thread, the toshlo yield close under 2. 13 we spent all of the time at 2. 13 and settled there tuesday, the day in question, wednesday and today is thursday, were at 2. 13 very significant level another significant area, with these Interest Rates so low, how much credit risk is out there . What do investors think . Look at high yield this is a one month barclays high yield chart 30 basis points isnt a small move but in the context of the next chart five years, still quite well behaved and mario draghi worried about a strong euro one thing i can tell you, the eu euro isnt going down without a fight. Power lunch will return in two minutes and more on the big bounces were seeing in some of the Technology Areas theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. 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Remember, Medicare Supplement plans help cover some of what medicare doesnt pay. Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Duck quack call to request your free decision guide now. Because the time to think about tomorrow is today. Take a look at the recent bounce in biotech, hitting the highest level since last january. The sector is up 16 lets bring in ronnie, the Senior Analyst great to have you with us. This breakout really seems to be pinned to gileads proposed acquisition. Thats an interesting deal, they are paying 11 billion or so in cash it gained 13 billion in market cap since that deal was announced. What do you think investors are reading into the deal as for what it means for the broader i it a angelina jolier Company Making a larger, and bringing in the hope that other companies will do the same the drug sector have a lot o outside of the United States and there is a significant discussion of moving forward of the agenda and repatriation allowed. So that suggests potential ideas. Couple that with some nice pricing of new drugs from bio gen and now we are seeing a little bit of a hope here. Dont forget at the end of the day, the job sector is very much under valued verses historic number verses s p. When biotech was at its hike, there were a lot of quote on quote tourists in its space. A lot of them fled in concerns of this. Little bit. If we look at all the matrixes, drug sector is still very much under crowd. So we can see some of it coming in i dont think well go on back 2012 or 2013, just because you will have elections in november and if democrats gaining power, there will be another level oppressed but overall, if you balance out the pressure, we certainly look much better now that there is a lot less concern that the president will do something in the near term thats an issue that the president has voiced a desire several times of the last nine p months to weigh in on. A couple of months ago of the executive order of two weeks ago, this is an issue that could rear its head again, at what point do you think this is is a real issue i got zero calls after that and essentially, Nothing Happened of the amount thats being paid to that came down among investors, in my guess of general support and congress and the complexity of the entire drug and value change being addressed, it is highly unlikely will happen. All right, ronny gal, thank you for your time. All right, the four big wall street calls you need to hear about today. Your daily dose of street talk is coming up next. U clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Time for street talk. On the stocks you need to foe about. We kick it off with snap with a mutual rating, fierce competition for the added dollars. Revenue growth will be over shadowed that implies 18 downside. Second stock is johnson and johnson. Ups is saying it is their top pick the firm is confident in their decision a recent accusation and drug expanded in their Third Quarter sales. Right now it is 1. 32 cents. They go onto say of the structural constraint and providing new source of additional demands worlds highest quality. All kinds of stuff. Final stock is abercrombie fitch. They made improvements to the business and second half tail wins they can return to profit building later this year the price is 14 to 12. 77. Hurricane harvey has taken a big toll on the Energy Complex the wells fargo fake account scandal, is getting worse, well have the details in twominutes. upbeat dance music bell ringing duncan just protected his family with a 500,000 Life Insurance policy. How much do you think it cost him . 100 a month . 75 . 50 . Actually, duncan got his 500,000 for under 28 a month. Less than 1 a day his secret . Selectquote. In just minutes a selectquote agent will comparison shop nearly a dozen highly rated Life Insurance companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 21 per month. Give your family the security it needs, at a price you can afford. Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. Welcome back to power lunch. We got your septembers play book ahead amazo amazon is taking on retail and streaming and mostly groceries one area theyre breaking into taking on the new big guys why you dont need the big dc backing to get you back to business off the ground. Power lunch starts right now checking markets right now, s p 500 is higher today. Take a look at the month of august, it started at 24. 70. Right now we are at 24. 69. Ending slightly negative for the month if it were to end right here trading for the month, well see whats moving right now. Healthcare is leading the way particularly in biotech. Energy is the second best performing sector today. We are continuing to monitor a dangerous situation stemming from Hurricane Harvey, fires at a Chemical Plant in crosby texas, scott cohn is there of the situation thats been developing the last several hours. Reporter it is going to continue this way for a while. We are 30 miles northeast from houston. They make all kinds of things but theyre flooded and one of the things they are worried about is what they call organic peroxide the issue is these things need to be kept cold. They lost power in the plant and backup generators because of the flood. They have moved these chemical of 36,000 pounds into refrigerated containers. Eight of the nine have failed. They ran the fuel and so it is inevitable that there will be more fires loo i can the ones that we are seen earlier from the air and potentially explosion. Because of that, thats why we are far away thats why there is a roadblock setting down the streets here keeping us and residents out because of the fear of 30 foot or so plume of smoke that are not toxic but irritating thats for sure we talked to some people that came up to the roadblock that include a mother whose three children were staying their grandparents in the evacuation zone and a trailer, also, a guy who used to work in the plant. A bunch of good people working over there, it is just that nobody expected this much water to come into take out the power and stuff over there my kids are here so this is the only time that i am able to come out because everything was closed at this point, i am just kind of worried of their safety and hearing that and i have to go see them reporter she was going to try to see her kids and get them out of there thats part of the issues. So many lives are displaced here thats going on throughout the region this is in many ways just a small, a slice of whats going on the floods are well down the road here but also elsewhere with so many people displaced and so many people still being rescued in places like port arthur so the devastation and effects of Hurricane Harvey are continuing long after hes gone. It is going to be a while for sure now for the markets which are rounding of this last trading day. Still, the uncertainty in dc, is it going to be a rough september . It is one of the worst months already. Listen to Steve Mnuchin telling us where things are standing on tax reform our goal had been august and things got delayed a little bit. But, we are on a track to get this done by the end of year so if you are going to see details coming out later this month, it is going to go through a Committee Process and we expect, the house and the senate will get this for the president to sign this year, we could not be excited for the progress. How critical is tax reforms for r the marke lets bring in mike guys, it is good to have you here i know it is debatable at this point how much is tax reform priced in many argued it is not expensive if you think it is actually going to happen, what do you think . Yeah, i would agree, i think there is a positive psychology to the market right now. There is some sort of better policy and less regulations and etcetera, they are incline to spend and invest and we are seeing that through seven of the readings for average investor daytoday, i would not get too focused on it when it happens, it happens, to the extent it does, better corporate profits and more money, pockets to spend and invest in people and cap ex and save and etcetera. I get that, what do you do right now if ru uncertain of whats going to happen does it matter. I would ignore it i really would i dont think you could gain plans work on dc on that level of a daytoday basis. Stocks are expensive but not outrageous some sectors are better longer and term values than others. Be careful of the early stage of the phsche, those fundamentals are more important on the daytoday tactics i see you like verizon. Apart of that is the super cycle that people are expecting business is turning around a little bit i think i was on a month or two ago talking to them and they have a good Second Quarter with some new growth in their net adds and they have a low turn, they actually have expanded their unlimited plan so the offering is Getting Better all the time and consumer is taking a look at verizon again. Matt, when you are thinking of the markets between now and the end of the year, are clients you are talking to in advance of potential tax reform, are they saying they want to hold off any asset sales or reallocations, are there consumer activities thats on hold because of this expectations of tax reform or this expectations thats going to get a Corporate Tax cut i think consumers are not looking to change its portfolio. I think we are optimistic and we can get something done and we hope so. Washington has a tendency to disappointment it is a little bit harder for them to get through the back end tax reform at the oechbd the day, i think our clients seem to be a little bit nervous right now and i have been preaching about cautions the last couple of months and taking in my equity position s s from where the growth have been. The market haves s have been one upside really kind of running ahead of Everything Else i think you will look at the market to be a little bit more caution. Everything we have with the debt ceiling ahead and so forth we are being cautious as this point. Mike, so are you. You are saying that stocks are not outrageously expensive but they are you still like facebook it is an expensive stocks i agree it is not cheap but we think overtime it will continue to grow in to a reasonable multiple and we just think it is a great longer term story. We are longer terminvestors. Short periods dont matter it is a longer term growth story, some other names, too lower cycle commodities and perking up and lower dollar value and better Global Growth you know copper prices are improving. Thats a longterm fundamental story with a different sort of but still a moneymaker guys, thank you, matt and mike thanks. Shares of wells fargo in the red dragging down the financials today after the company says there may have been almost twice as many fake accounts opened and the compa than the Company Previously thought. Elizabeth warren weighed in, the Federal Reserve should remove anybody serving on this scandal. I dont know what they are waiting for. Warren buffet are not surprised of more bad headlines coming out thats what used to terrify me hey, how do you put the focus on and hundreds of thousands of people working for it. You may very well find that there was not just the one that misbehaved that you find out about it of course, it was more than one. Thats the companys largest sharehold shareholder. Lets bring in our scott, analyst. The company is putting the issue behind it. It would seem like the sheer increase in the number of accounts would be stoked in the political fire on this what do you think . I think the fact the matter is it is important to keep it in contact and yes, the number of affected accounts was up by 50 or sochlt it is enforcement bear in mind that they doubled the amount of time in their rezru they extended it back to 2009 and added another year up front as well. A 65 increase of the number of accounts still relatively low number twice the times here thats ultimately expected the sheer dollar figure of the amount that the company has had to reimburse customers are relative lilo considering how big of a company it actually is. They pay out of that 10 million. I am wondering if you think theyll need to reserve money to pay for potential resettlements if regular needs to start to look at this again the amount they approved is certainly far more than sufficient to cover everything that was an actual damage and probably, you know, likely penalties as well. You know hopefully todays disclosure and while you never like to see the numbers are affected potentially, this should help to bring closures of the wells fargo cscandal. It sounds like you are saying things are not so bad. Wells fargo is under performer of financials. When you take a look of it, it is trading at the same level of jp morgan. Whats the discount and should there be a discount still to wells fargos evaluation because of the scandal i tend to look at it ive arelat its own historical and trends. At least we are put to bed and hopefully this faphase of the scandal. It is important to know. If you go looking for problems inevitab inevitably you are going to find some wells fargo has disclosed areas in and resident mortgage and account freezes and well known au autoinsurance, more over, investors will have to rescue of the slowing top line Revenue Growth one segment of uncertainty in that, i think the discount is more is cross selling a munch of malark malark malarky . You are going to make more money on the individual customers. Now wells fargo shows us they cannot get a person with a bank account to take the credit card unless they do it secretly is cross selling a bunch of malarky . There is nothing wrong it just never seem to achieve what everybody is going to do. Thats an important point the better part of my career 20 years or so, everyone out there tried to follow the wells fargo model and penetrating the existing customers base deeply but nobody was able to figure it out. Now, we know why. You know as i said, cross selling of itself is nothing wrong with it but it is the manner in which employs tried to sell additional products to customers. Well see how this affects them Going Forward scott, appreciate your views today. Cayla, thank you for having me thank you, of course. What it means for oil price and a baseball star raising money to help his hometown, beaumo beaumo beaumont, texas, first, facebook, amazon and google and which stocks will do the best e teethe next year oninrn analyst gives us his top prediction, all that and more coming up on power lunch. Seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade jeffery is out with a new report, looking forward to break it down. Brent, thank you for skroinijois i am going to kick it off with number one which a lot of investors are wondering about. Facebook, google and amazon, which is the top we put facebook in 40 growth and margins, we like all three, google is obviously very attractive at 11 times with the call options and amazon is running away of the freight train. Whats happening with the rest of the business, we like facebooks position here for a number of different reasons. You like facebook, does that mean snap is dead in the water of your view snap in the mid cap pick, we add improvement and experimental and i think we put snap in the experimental snap have a lot of to do items and we have a list of things we like to see them do. Facebook and social is number one pick i want to go to your number seven, amazon expanding to a 100 billion gaming market, what would amazons gaming product looked like . My daughter whos five can fire up home alone home alon her kindle we think they are the right infrastructure cough twith the n taking the content and making it seamless emma thought it is crazy just to watch home alone just a click of a button. Is microsoft also gone in terms of consulconsuls . We dont think it is dead in the water. I would think it is a world that supports both for now and the growth rate is higher and you think just the con assumption of turning it on overtime can be very easy for consumers. You do like amazon as you mentioned, i want to ask about the whole foods conversation, i was speaking on fast money he says his take on the deal, theyre basically conceding they need brick and mortor. Do you think thats to come . Is that your anticipation and what would that do to your view of stocks . We think clearly it is not great short term on margins. We think it is the right thing to do in terms of having that physical footprint we think the zombie channel makes sense. I drive to whole foods to and from work. It is another touch point for amazon consumer. This is probably still early and we think there is going to be more we have a lot to digest right now. There is other errors amazon needs to go in first before they double down on more store fronts searching gear to travel, grant. You say no winner take all even though there is tremendous consolidation, thats after no more we think when you look at the travel, it is unlike, if you look at search and social, there is one clear run away leader, right . There is a bunch of vendors thatll benefit. In the sector, it is right, it is clear that you dont want to bet on number two or three travel is different. We have a basket of name that is we like and we like price line and clearly out performed for out sometimes and clearly did not realize that it is going to lead for uber. Double digit on the top line. And the new ceo yes, we do. Hes been there for ten years. Hes got a good pulse of whats going on and well respected among the travel industry. Brent jeffery, thank you for unioning joining us up next, the booming biotech, thats next of the good and bad and the ugly a big interview tomorrow gary rehn, National Economic counsel dictor, at 9 30 a. M. Eastern, tomorrow, power lunch is back in two whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Welcome back to powpower p lunch. First, the good, bluebird bio. Stock is up 24 so far. Onto the bad, campbell soup, dragging nasdaq down for 7 . It is an ugly day for ciena is lower than expected. It is the next quarter is the problem. Dragging it down to 10 . Clean up and recovery under way in texas it will be a long time before everything gets backup and running especially Crucial Energy infrastructure. What those pipelines shut down mean for prices. We are waiting for the White House Press brief zg well bring house press brief zg well bring it to you live when it but investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Here is your cnbc up day widespread flooding continues to be a major concern for major communities in and around houston. This shows the single ranch neighborhood near houston is completely under water several areas are under mandatory evacuation orders. California firefighters continue their battle near the radio fire it is just 5 contained. It is dangerously close to a local launch along with hundreds other structures 21 people are dead and more than a dozen others trapped after two days of monsoon downpours cause add building to collapse in mumbai Princess Diana died on october 1st. Thank you courtney reagan. We are markithe market is sel bit of a balance extending gains for a second week lets go to our commodity desk. Harvey is getting a lot of focus. Fuel shortage concerns are rising especially as we learn motiva could be shut down for up to two weeks take a look at gas prices, higher than 13 or more. Higher by 20 over the past week also, part of the story is oil crude prices are up 2 right now. Reduction and Refining Capacity adding worries to Oil Producing nations to venezuela take a look at the venezuela ten yield bond up to 11 thank you. Getting those refineries and pipelines backup and operational. Morgan is joining us with more of the colonial. Thats ne so privately held pipeline, it is one of the biggest in the country. Transport of 3 Million Barrels per day of gasoline and diesel across 5,500 miles of network. You can see on this, national atlanta, charlotte and baltimore and dc area, all the way up to new York Metro Area tchlt company is saying two lines are down from houston to herbert deliveries is quote, int intermitten. It is not just the colonial we are seeing with the pipelines. It is also down from houston to tulsa. The Ripple Effect goes as north as chicago with that pipeline. A all of this is helping to push retail higher. Gas is 245 today thats up ten cents from just a week ago in key states, those moves and bigger in jazz, we are seeing an increase of 17 and in Missouri Service by explorers up just 10 cents in the past 24 hours thats a big move. Those prices are going to continue to climb. Some areas there is going to be shortages. Thatst something thats something we are starting to see in dallas people are lining up at some of the gas stations in that city. Guys thats going to be tougher. Thank you very much, morgan our next guest says says republicans using the northeast gasoline supply reserve. A measure he says would do more harm than good lets bring in kevin Book Management director of research. Good afternoon michelle i think a lot of people are familiar of the supply thats kept down in the south nchlt the wake of super storm sandy, the northeast struggled with gasoline, now there is a big gasoline reserve as well, correct . Correct they forward located millions of gas in the northeast. There maybe 200,000 in new england. The idea is to have supply available, should there be a cutoff of resources of other parts of the country and domestically of those states of refinerie refineries it seems to me that we do have refineries shut down in the storm and it is going lead to disruption in supplying in the northeast that they should release them whats wrong of me thinking of it the problem is underneath it is the economic transporting and refining products. What you have is a big signal that says to any tanker coming in, well, maybe it is not so much of a rush if the reserve is bigger, the problem can be bigger still. There is an adverse selection. What you are doing in some way is shift the inventories from the balance seat to the federal government without necessary adding to energy security. So the problem with reserve is both economic and political. I am confused the exist it sounded like you did not want them to release in this case, you are suggesting the mere existence in the northeast is a bad price signal so we are not drawing in the United States as we should, you have an issue with that . They are there. Talking about them like they dont exist makes no sense a big Holiday Weekend with a lot of customers the problem it becomes a political question as well it is always a way to lower price in the future. And so for elections and other occasions where that can be expediant. Right now there are questions of what you are going to do you have 17 or 18 days before a cargo that leaves of ordinary circumstances and 10 or 14 days for tankers to cross it is not as though it is big enough to replace in bound of any source, it is only about three quarters of a day of supplies it could take off the edge of hording which is one of the huge problems the tanker is not going to come you are saying it would not have the sense of urgency would other wise that would take a day longer it is a question of diverting cargo and process to supply becomes any way it can whether on sea boards or vessels in essence, what you have is a complex problem and not big enough to solve the shortage today but big enough to scare away some of the supplies thats necessary of the northeast easy for us to debate in the studio here, we are not the people who is lining up for gas. And i dont drive here, i dont know about you phillip 66 to refine that product theoretically to make gasoline, was that also a bad move then . Dallas morning news that move the needle in term s of prices . It seems operationally sensible if the pipeline cannot take refining products in to the northeast then you go t a problem. Makes all the sense in the world. Can i just under line it. It sounds like it is not big enough or small enough of what you highlighted. Would you advocate some kind of to cover certain number of days are you are worried about the market signals i would not avenudvocate bec i am just an analyst for those who dont use it, theyll say we never nuuh did did nu all right, kevin book thank you. Thank you for having me whats next for Energy Crisis with the trading nation team weighs in. You see the devastation from beaumo beaumont, texas, streets are flooded and now, no portable water. Well talk about the effort of recovering and rebuilding. We are waiting for the white lbres press briefing wel ing it to you live when it happens in just ten minutes time power lunch will be right back amazing video of our Brian Sullivan got into birds eye view of the city of houston. What downtown is looking like now, amazingly dry major roads are opened up and back in business 79 of 80 restaurants of the hurricane impacted area are now opened and will be for the long Holiday Weekend. Tillman is making 900 pizzas for First Responders they have been feeding the men and women. A relief fund thats donated a Million Dollars to the dome to be in effort the Buffalo Bayou i mpacted area as you can see there is plenty of flooding going on it will take a long time for those impacted with the storm to recover. The city of beaumont, texas, have no running water. The city have been flooded beaumont is one of the hardest hit area in the storm. Jay bruce is trying to raise money for h is hometown. Thank you for your amazing effort this is your hometown during the offseason. Tell us of your friends and family and community, how are they thanks for having me, guys, i appreciate it. Fortunately, my friends and family are going great but, you know i cannot say the same for a lot of people, for a lot of people that we know we know so many people that have lost most but if not all everything the community was thoroughly crushed by all the flooding and the rain, it would not led up. Beaumont, theyre pretty well in regards of getting flooded in the surrounded area. You can go on and on and all the people they were affected by this waking up this morning to hear the news that there is not water available in beaumont, texas, made matters worst for you using the platform that you have as a public figure, you are raising 100,000 which you and your wife will be matching 66,000 have been raised how will you use those funds how would you advise the charities to divert those funds based on what you know what the Community Needs . Well, our goal is to reach as many families directly as we can. We are trying to gate groet a gp right now. And be able to see who needs the help and where it needs to be directed to and you know this 100,000 that my wife and i are matching is just the beginning the goal is 100,000 to start and hopefully we can continue to grow that. We want to affect as many people directly as possible and many families as possible we are just trying to do our part from afar in order to raise these funds and help we have so many friends and people on the ground there and so saving people and rescuing pets and just doing their part and you know we cannot be there to help. I want to view the platform in order to raise awareness and raise funds for the people affected because you know it is my home and it is where i grew up and my wifes home and where she grew up. It means so much to us and so you know, i cannot stress enough that anything helps there is no donation thats too small and, you know just pleased for people to help yeah. We have seen so many companies, aiding these communities in texas and louisiana. The list is growing by the day you have been employed by the indians for a couple of weeks, what was the conversation like going to them and asking for their help in your time of need . In my opinion, since i got the phone call from the indians that i was traded there, they have been nothing but supportive for me personally and profession professionally, they made this so easy on me. I cannot ask for a better helper than a partner from the indians. They have done above and beyond to make my transition comfortable. When i came in, we literally talked about it at, you know, midday one day and you know the next day in the morning they had a website up and they were directing all the funds that were donated directly to me and really are the ones who made this capable for us and made it real the Fund Raising Efforts will go into september 10th indians. Com bruce. Thank you so much for joining us thank you very much, i appreciate it. Gina sanchez and matt, guys, great to see you gina, i will kick it off with you. Do any of these prices making equities for attractive in your view well, it is an interesting time you have oil crisis showing weaker fundamentals and oil prices are falling and gas prices are rising. 25 of the refinery capacity of the u. S. Is down on the back of harvey and so we see this as benefiting the refiners this is a big payday oil prices are going down and gas prices going up. We dont see this is a longterm trend, this is specific to whats happening with harvey and what happens with the efforts to rebuild after harvey, however, it is a payday matt, what do you see in the terms here well, we are kind of a key level here for crude oil it got right down to 46 this week when everything really hit but it helped. And it bounced off that level. Today we have an outside day or an outside update which is followed by a short term balance in crude oil these are all short term issues. We have two clear defined levels 46 on the downside or resisting side, we have 56 thank you, matt and gina, go to tradingnation cnbc. Com we may have some immigration news, well bring it to you live, well be right back. Now, the latest from trading nation and a word from our sponsor. Unless you are an extremely short term trader, it is usually best buying at the first hour of trading. When volatility picks up, the re and the price can increase thats not a Good Environment to buying yourself. With us now it a company in the Athletic Apparel space that you might recognize and is looking to deal with the big players. Since the launch of the company, the company has raked in 1. 5 million in revenue, and the company is getting ready to launch womens gear. Terry is back to tell us how he did it terry, welcome back. Thank for having me. The first question i want to ask is in terms of your expansion, are you selling direct to consumer, or are you relying on any other platforms to sell because what weve seen so far is the big guys like nike have relied on finish line and others to sell their product and then they pulled that back. Yeah, no. Our commitment has really been online we think especially early its really important to stay focused, and coincident think also happens to work that its almost like were there out of the gate so we dont need to pivot or adjust our business, our business strategy. Were already direct to consumer, and thats what we know, and were investing in it. Your original product was compression shorts for men which was an underserved market. You felt like you could innovate there, and what in the womens market do you feel is an itch that doesnt need to be filled right now . We reengineered kind of what people traditionally know of that product being attention to detail when it comes to construction, quality and then obviously function. We think we can bring a lot of that over to the womens side as well, but more than anything i think its the brand that were building were building technical apparel inherently that is essentially geared for the everyday athlete whether its a man or woman, and whats unique is were highly committed to technical construction, maybe the same way a nike or under armour might be. Isnt that the way, just the way nike or under armour is. Right, if i close my eyes, could i have been thinking that i was listening to an under armour or nike ad, not necessarily wolaco. Sure. Its just, you know, a hyper focus on a customer. Its a really intimate understanding for a specific generation and demographic of person, and it allows us to have a little bit more attention to detail when it comes to building and function, ant at the end of the day, like i said, were trying to build something thats recession proof. I think athleisure is a little bit of a trend were not really as concerned with the field sport athlete. Thats what i was going to ask about. Athleisure, a moment when every woman walking down the street was wearing their version, the equivalent of some kind of compression tight because they thought it made them look better, probably does, and yet it feels like its peaked a little bit and were on back side of that are you coming into this market for women at the wrong time . I dont believe so. I think, like i said, people are always going to be active. I think if you can actually increasingly so, and thats a statistical fact, and and by really just leaning on quality, durable design and construction with a nod to functionality and being smart and clever, you know, i think the trends are really in our favor. So the three items in womens gear that youre release for the fall holiday season, give us an idea of what they are and how much they cost. Okay. Keeping some of it under closed doors, three items, you know, keeping it very simple we manufacture in the u. S. Out in california, so we dont need to overextend on purchasing invent try which is an advantage of ours. We have one hero item, similar with the men owes compression short. Were building a pant that has similar function cut, we essentially kind of evaluated the market and tried to figure out what is that thing thats most commonly purchased, and its just so important to start there, and then integrate a lot of the function. One line, why i should buy your pant instead of a lulu lemon pitch . Turning into a pitch. Its going to be more durable. Everything is wear tested. One of the thing weve proven with the mens side its almost in our it almost works against us how long our products last, and thats something that were going to stand by, and we have the ability to oversee that being manufactured here in the u. S. Fabrics that comes from quality fabric, construction and then were building in functionality. Well have a sweat proof pocket to store valuables and well solve a very simple problem that a lot of women have and were going to do it really well talking to cnbc viewership right now, but how do you reach potential customers, because nike and under armour, they have the visibility of these high octane athletes that are wearing their logos splashed across everything that they have. How do feel find wolaco . As i alluded to before digital is really important wolaco stands for way of Life Athletic Company and thats why we feel we can transcend dependers. Is it newsletters, instagram . I mean, where are you finding the customers who actually click through and purchase your product exactly its content its content thats deployed through instagram, email newsletters and then even creating community through physical activation and then using the digital landscape to tie all of that together. Terry, thanks for joining us. Best of luck in womens pants. Thank you. Up next on power lunch, check, please. Thats coming up, and were still watching the white house a briefing from press secretary Sarah Huckabee sanders expected any minute now well bring it to you live when it does. Whoooo. Youre searching for something. Like the perfect deal. On the perfect hotel. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. The port of houston Container Terminals and the port of gavelston will resume operations this friday, and seven ships are scheduled to dock at the containerterm falls Union Pacific says repairs are completed between houston and brian, texas, so rebuilding and reopening is happening. Terrific news for the supply chain. Thanks for watching power lunch and thanks, kayla, for joining us today. Closing bell starts right now. Hi, everybody welcome to closing bell. Were going to see how much we can squeeze in before we get to that press conference happening at the white house in a couple of minutes im kelly evans at the New York Stock Exchange and im mike santoli in for bill griffeth. Dow closing in on 22,000, could be poised for its fifth straight positive month healthcare the best per former today. Trying to see if the s p can stay positive. Up a couple of points in the green for the month. 2470, chamber of commerce to watch. Gasoline prices surgin