Transcripts For CNBC Power Lunch 20170918

Lunch on a monday begins right now. Welcome, everybody im Tyler Mathisen stocks posting solid gains and sending the dow, the s p and the nasdaq to alltime new highs materials, financials, telecom leading the way higher meanwhile, yields on tenyear notes hitting highest levels in more than a month. There you see it 2. 23 check out some of the movers in the market shares of ubiquiti networks, thats spelled interestingly, dropping about 8 . Short Seller Citron Research calling the tech Company Total fraud. Nvidia trading at alltime highs. Paccar also hitting alltime highs. Im Michelle Carusocabrera while the east braces for hurricane jose this week, Hurricane Maria has now strengthened into a major category 3 storm we have the latest just minutes away Home Builders feeling less optimistic concerns that rebuilding efforts after hurricanes harvey and irma will drive up construction costs. And the cnbc global cfo council releasing its latest info some giving President Trump credit for some of the stock market rally weve seen. And the record rally is where we begin. Another solid market day bob pisani were heading for six months in the s p up every month here let me show you whats going on. The most important thing is sheer momentum we crossed the 2500 mark that was a very important psychological level for the markets here also the advance decline line. Every day more advancing the declining stocks the market is not going to break down when thats happening for sure and europe has been strong recently a threemonth down trend but its been coming back. Both continents doing well not a lot of patterns. The s p 500, six months in a row if we do this in september we havent seen that since 2013. Benjamin netanyahu. Lets go to him. Peace between the palestinians and israel would be a fantastic achievement, and we are giving it an absolute go i think theres a good chance it could happen most people would say theres no chance whatsoever. I think with the capability of bebe and the other side, i really think we have a chance. I think israel would like to see it, and i think the palestinians would like to see it and i can tell you the Trump Administration would like to see it so were working very hard on it well see what happens historically, people say it cant happen i say it can happen. But i just want to say, mr. President , its an honor to have you. Great to see you. Thank you. Mr. President , its great to see you again. I want to say that under your leadership, the alliance between america and israel has never been stronger, never been deeper i can say this in ways that people see and in ways that they dont see so i want to thank you for that. Equally, i look forward to discussing with you how we can address together what you rightly called the terrible nuclear deal with iran and how to roll back irans growing aggression in the region, especially in syria. As you said, we will discuss the way we can seize the opportunity for peace between israel and the palestinians and between israel and the arab world i think these things go together, and we look forward to talking about how you can advance both finally, were going to be speaking tomorrow at the u. N and i want to say that under President Trump, americas position towards israel at the u. N. Has been unequivocal. Its been strong its got both clarity and conviction and i want to thank you on behalf of the people of israel and israels many friends around the world. Thank you, mr. President thank you and also as you well know, this is the jewish new year this week so i want to wish you, the jewish communeities of america, jews everywhere, people everywhere, happy, healthy new year thank you, mr. President thank you very much appreciate it. Mr. President do you plan to youll see very soon. Youll be seeing very soon were talking about it constantly were talking about plans constantly youll see thank you, everybody. Have a great afternoon see you soon okay. President donald trump with Benjamin Netanyahu had a few questions at the end couldnt make out the questions but he said youll be seeing very soon. Im assuming very soon well figure out what those questions were either the president optimistic that peace in the middle east, particularly israel, could indeed be achieved even though he said some people dont think it is possible eamon javers you saw the perennial tension between the press wranglers trying to get everybody out of the room and the president who clearly was interested in taking a few questions there even though the wranglers were trying to get those cameras out you saw the president talking about the idea of middle eastern peace between the israelis and palestinians that was the subject of his comments netanyahu moving quickly to his top priority which is revisiting the iran nuclear deal, talk to the president about that praising the president and his administration so thats sort of the opening preamble here. The president will be making his big u. N. Speech tomorrow, but so far today, hes already had the opportunity to make some remarks on the topic of u. N. Reform. Some changes that hed like to see at the United Nations. Heres what the president said earlier today. We seek a United Nations that regains the trust of the people around the world in order to achieve this the United Nations must hold every level of management accountable, protest whistleblowers and focus on results rather than on process the president laid out a couple of remarks saying u. N. Peacekeeping missions need more clearly defined goals, focus more on people and less on bureaucracy and that no state should have the disproportionate burden in terms of financing or military might the president saying that that should be spread out more equally. And i can tell you that the chinese leader xi jinping is not at this event but the white house did say the president and the chinese leader had a phone call earlier today in which they talked about north korea and north korea will be one of the many subjects that the president will be working on during this u. N. General Assembly Week in new york it was interesting to see the leader of israel talk so warmly. They have a very warm relationship netanyahu has made that very clear when hes been with the president before his relationship with obama was pretty bad but especially interesting to see in the wake of a situation with charlottesville and all the accusations against the president , the leader of the jewish state still warmly embrace him. Youve seen netanyahu serve in that role for President Trump before backstopping him against any kind of allegations of antisemitism that have been hurled at this president netanyahu, a big defender of President Trump, an admirer of his and clearly somebody who hopes he and the new u. S. Leader can have a better relationship than he and the last u. S. Leader had. All right, thank you very much lets switch back now to our principal topic of the day and thats the markets as they keep hitting record highs you wonder whether they are able to run even higher or may be a little pricey. Lets ask nancy tangler and steve chivaron welcome. Nancy, you know, some of the categories of equities that you have favored on our air and elsewhere over the past year have run up pretty nicely. Good for you you are outperforming the benchmarks are they areas where youd be taking some money out of now and repositioning . Yes, thanks, tyler. You know, its getting to the point where were having a little trouble finding attractive names thats not been the case recently and you know that as recently as a few weeks ago more months. I was calling for a correction we didnt really get one sort of got one and then more money piled in weve been selling the winners pretty religiously, trimming back on the apples and the boeings and johnson johnson, some of the Large Holdings in each of those categories and looking for places like Texas Instruments where we still get relative valuation thats pretty appealing and a growth story but were not chasing electric utilities which are trading at historic highs with no growth and pretty high multiples. The answer is yes and in addition, weve moved a little bit of our equity money overseas into our into our international and emerging market space our other guest, steve, we lost the signal from him, but lets continue there you also like amgen, one of the big bioteches. Why . So amgen has got some problems the pipeline is a little disappointing. There is biosimilar competition coming in. But it has a compelling valuation. Not just in terms of relative dividend yield which we look at but price earnings ratio as well if gilead can do it, kite pharma acquisition, we have hopes amgen is going to figure this out, restart the pipeline and make the right acquisitions its been a long time since theyve made an acquisition and we think this management understands the risk nancy, if i recall, you liked google for a long time i dont see it in the notes here is that one of the names youre pulling back on here and do you have any nervousness about any of these tech names as we hear more and more about washingtons unhappiness with them regarding privacies, whether its facebook with russia, et cetera i do, michelle. We have been trimmers of google. Still a large holding. Same with facebook it feels a lot like microsoft in the i think that was the 90s when yeah. The antitrust pressure. And i am worried because they are an easy target now do i think that will tank the stocks exponentially no but were going to take our profits because we dont want the Market Making our Asset Allocation decisions for us and theyve appreciated handily. Weve been trimming back on those as well. Steve, youre back with us now. Sorry we lost the signal there for just a minute but welcome back good to be back you like financials right now. Why . We do you know, we laid out a series of reason yes we thought there could be a market pullback over the course of the summer uncertainty around the fed and debt ceiling we thought all of that caused a reduction in Risk Appetite which drove folks in stable growth, the tech names we think that a lot of those risks are subsiding. October is where corrections go to die and we did get correctionses in parts of the market and like cyclical value we think financials are at the forefront of that part of the market what else do you favor right now . You said some of the cyclical value stocks what would other examples of that be . Sure. So in addition to financials, were sniffing around energy quite frankly. We think telecom is another area thats down 18 off of its highs this year. Youve got some rumors of amazon entering the cable business there. Youve had Competitive Pressures that have held those names back and some value there also in industrials and materials. We are looking at whats going on in the north korea situation right now. And we look back to the cuban missile crisis and during that period you never got a pullback in the market greater than 1 , even at the height once the crisis subsided a 10 move up as general risk appet e appetites grou with a strong earnings background around the globe, we think those areas are interesting as well. Steve, nancy, thank you very much we appreciate your time. Lets turn to weather. Maria upgraded to a major hurricane trailing but not far behind hurricane jose. Lets get the latest from wtvj meteorologist Steve Mclaughlin maria will be the big story over the next couple of days it is a major category 3 hurricane with winds of 120. It could strengthen to category 4. Category 5, 157. Thats going to be tough but certainly a possibility. And the track right now right over the leward islands, winward islands to the north of that and then right across the Virgin Islands and puerto rico, possibly as a category 4 or 5 storm and you can see the track over that. For folks that live where i live down in miami, very happy this storm is going away from south florida, especially after irma, but there could still be some big impacts for the east coast latest computer models suggest cape hatteras, north carolina, is in play next week lets take our full screen and show you rainfall totals were looking at general amounts in the islands of up to maybe 12 to 18 inches, but i think that bullseye of 24plus could easily move right over puerto rico so in addition to the wind and storm surge, rain and flooding lets bring it back home for jose this is barely a hurricane winds of 75. You can see the Tropical Storm watches from fenwick island, delaware, to coastal connecticut. The warning area in red will be our bullseye thats coastal rhode island around cape cod. This is where we could have the worst storm surge, torrential amounts of rain. We could have gusts as high as 70 rainfall totals, the bullseye could have five to eight inches of rain. Worst conditions tuesday into wednesday. More updates later today back over to you we look forward to that thank you. See you soon the equifax data breach costing two executives their jobs but many are saying thats simply not enough. The doj reportedly launching an investigation. We have the very latest ahead. First, a new report says that amazon may be looking to get into tv. And not just through amazon prime. This rather strange new story comi ungp. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. It was a night of records at the emmys. Hulus the handmades tale. And the cast of veep took home the emmy for best comedy Third Straight year it did that. Hbo won the most awards with Big Little Lies helping to secure that record hbo was able to hold off netflix yet again winning 29 total emmys compared with netflixs 20 saturday night live coming out on top it won the most awards of any thanks in part to its spoofs of the president and sean spicer who made a special appearance last night anyone who can say how big the audience is, sean, do you know this will be the largest audience to witness an emmys, period, both in person and around the world wow that really soothes my fragile ego. Well, it didnt quite turn out that way the crowds the emmys breaking another record not one to be happy about. Emmy ratings, no, mr. Spicer, indicate right now an alltime low for the tv broadcast we know that amazon is big approximately 80 million amazon prime members. More than half of all u. S. Households our colleagues at nbc news are reporting amazon is in talks to buy some small Cable Television channels here with more on that, daniel curnos what do you make of those reports . I think it makes a lot of sense, brian if you think about amazons content Acquisition Strategy you have a really interesting meta morph sis where programming costs are going up demand for original content is increasing and the broadcasters, along with the big four networks, are still probably under indexed in terms of their dollars by about fifty relative to the eyeballs they provide a lot of these Small Networks are struggling to get their piece of the pie the comcasts of the world have to start cutting their retrans rates. And a lot of them are going to struggle it makes sense for amazon to reach out to some of these smaller independent channels that arent tied into these bundles and grow their business through content acquisition that way. I think amazon could get into whaling and people would say its a bold new step everyone says tv is dead amazon may be getting into traditional telephone. Dont get wonkied on this but theres a new technology coming out next year. What is that going to do to amazon and now might that play into this strategy if, indeed, the reports are true so ats 3. 0 is going to start getting rolled out next year i wont get too much into the weeds. The way you should think about it, its a Compression Technology and unless amazon goes out and buys Distribution Channels like a tv station, which we think is possible, amazon or a google could go out and acquire one of the broadcasters as a spect rum play, what it does is really two things it allows for significantly more multicast channels so if you could run one 4k channel and several high def channels you can run multiples of those and sub channels which would allow for some of these independent channels to gain broader distribution without having to go over the traditional internet channel so it also is an ipbased technology which from amazons perspective, we know amazon is a big data play. If they were to get involved from that perspective, theyd have access to viewing habits. This is a mobile first technology, it would allow them access to the phone. It would really enhance the Knowledge Base they already have on the data front. Daniel kurnos, a pleasure to have you on. Thanks thanks, brian more bad news for equifax. Two executives out following two executives are out following that massive data breach and the doj reportedly getting involved, too. The latest straight ahead. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. So you can get business done. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right Financial Advisor, life can be brilliant. Ameriprise at ally, were doing Digital Financial services right. But if thats not enough, we have 7500 allys looking out for one thing, you. Call in the next ten minutes to save on. And if thats not enough, well look after your every dollar. Put down the phone. And if thats not enough, well look after your every cent. Grab your wallet. Access denied. And if thats still not enough to help you save. Ooo i need these well just bring out the snowplow. You dont need those well do anything, seriously anything, to help our customers. Thanks. Ally. Do it right. Welcome back to power lunch. Equifax continuing to feel the heat regard tgs massive data breach two executives retiring and now the department of Justice Reportedly getting involved. Adee aditi roy is live with the latest a lot of new developments to talk about this morning. As the department of justice working with the s. E. C. Is reportedly investigating equifax in a criminal probe over the selling of shares by three executives following the breach. Equifax has lost nearly 6 billion in market cap since the breach was made public late friday the Company Announcing the retirement of two executives chief Information Security officer david webb and chief Security Officer susan malden. Both those positions will be filled in the interim by inhouse employees in other developments, short seller carson block told cnbc hes selling equifax over the hack his firm does not hold a short position in equifax. The company also revealing more details about the timeline leading up to the announcement of the breach. Equifax believes the hackers accessed the personal information between may 13th and july 30th. According to equifax, the cyberthieves took advantage of a vulnerability in the Apache Software the company was using to run its web apps. They noticed the suspicious Network Traffic on july 29th and the 30th they took the application offline, patched it up before bringing it back online. And they brought in a Cybersecurity Firm which is part of fireeye its still unclear why the company waited until september 7 tot make the breach public just one of the questions out there. Thank you very much, aditi roy. Fixing americas Retirement Crisis if we have a crisis some Smart Strategies on what you can do right now to secure your financial future. Plus, it costs a lot to live in new york city but it just got way more expensive. Well explain, next. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Has gotten to know our business so well that is feels like hes a part of our team. With one phone call, he sets me up with tailored products and services. And when my advisor is focused on my tech, i can focus on my Small Business. A dell advisor can help you choose the right products with powerful intel® core™ processors. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. Hello. Im sue herera heres your cnbc news update iran says the u. S. Is the greatest threat to the iran nuclear agreement. The iranian representative at a reference of the u. N. s Nuclear Watchdog agency in vienna pointing the finger at the u. S. For putting that deal in jeopardy the american administrations overtly hostile attitude and actual footdragging policies and measures aimed at undermining the nuclear deal and blocking irans legitimate benefits from its full and unimpeded implementation are contrary to the letter of Baltimore City firefighters are telling people to shelter in place. A mile around a hazmat release from an industrial building. Theres a vapor cloud above that building, and that chemical released is a skin and eye irritant Green Bay Packers quarterback Aaron Rodgers becoming the 11th nfl qb to reach 300 career touchdown passes he hit the mark last night in a losing cause, unfortunately, against the Atlanta Falcons in his 144th game hes the fastest to reach the milestone and the only one to reach it with fewer than 100 interceptions. He has 74 interceptions. Brian, that story is for me and you. I forgot the cheesehead today. Should have brought it in. I like that, unfortunate loss slipped that right in there so smooth i like it. Go pack. Were covered. The markets continuing to recover and move higher yet again. All three major indexes hitting alltime highs once more financials, materials, leading right now. Utilities and real estate laggers. Mattel and chipotle, those stocks down more than 27 over the past 90 days the industrial etf, a new alltime high as well today. Michelle a new report out showing fewer International Students choosing to pursue an mba in the United States. Kayla tausche has more on that whats up . The political and hiring climate in the u. S. Is giving some International Business School Candidates pause when considering applying and thats according to gmac, which is the council that administers the admissions test, the gmat the survey they plan to release this week shows that 75 two ofyear mba programs report a decline in International Applications this year chopla says that now schools in the uk, canada and Continental Europe are competing for those students who would have moved to the u. S. Otherwise that dynamism that the u. S. Education system creates, that Network Effect if that slows down, it could have an affect on the overall u. S. Economy these schools are still meeting demand, we should say. Receiving 4. 7 applications per slot for students. And highest ranking schools arent really seeing this decline. But other schools are. Take for instance the university of iowa school of business it decided to phase out its twoyear mba program citing the decline in International Students as one reason for doing so the university of indianas Kelley School of business saw a 19 drop in applications from outside the United States and mishra of india said job prospects are better in the u. S. But he worries about ha bility to stay much longer. I would like to stay for the next four or five years because it will be much easy yir to pay off the debt from the u. S. Than probably going back to india and paying it from there the flip side, more u. S. Students are taking the gmat and applying and matriculating at u. S. Business schools but its not quite enough to offset the decline in International Applicants and administrators say that hiring administrations, and companies, they want to know that these students are Getting International and diverse educations and that that melting pot if it gets lukewarm, could have an affect well see in the numbers. Ahead, strategies to help you maximize your retirement savings. Plus more power lunch straight ahead. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Its time for street talk. The Analyst Recommendations on the stocks we believe you need to know about. Stock one, platform specialists. The Company Plans to ipo its Agricultural Division next year and suntrust thinks that will be a positive as there are minimal synergies. They say now that along with any kind of Equity Offering it may do should shrink this companys value discount to its peers. Their 15target is about 30 upside on pah. Second stock is the rocket ship of the year, nvidia bank of america raising their price target from 210 to 185 there are multiple catalysts that will help the stock they highlight all of its expansion of the cloud all these people have to spend cap x money to buy their chips in order to make the cloud work. Plus growing momentum in gaming because they do gaming stocks as well stock is already up a whopping 200 over the past 12 months analysts think it could just go higher from here the third stock is a Semiconductor Stock as well. This is cohu the ticker is also the name. A californiabased semiconductor company. Needham upgrades it. One of the highest exposures to the automotive integrative business it should enable cohu to win more business. A bunch of new products coming out. The analyst is optimistic. A 24 target on cohu this morning it was a 20 up side still bullish on the name. Up 15 on the day wow. Final stock is caterpillar alltime highs today upgraded to buy from neutral at ubs. The stocks cash positions as reasons for the call price target is 140 bucks. Wow okay joining us now to talk more about this call is Steven Fisher what was the primary thesis behind your increased bullishness on cat thanks for having me here the fundamental setup is as strong as its been in several years. And all its major segments are now growing and the question here is, whats not priced in yet. And we think the answer is the full acceptance by the market the cycle still has room to go and weve published two pieces of proprietary resrch that suggests cat could be stronger than expected and thats taking our estimate next year up 14 above consensus. Also an emerging cash angle that we think is not yet fully appreciated. We think cat could generate 15 a share in excess cash over the next few years with that run, weve seen in the stock, even with this run, you know, in our 2018 enemy benumbe trading at a discount. Why do you think mining will be stronger than what other people are expecting i think weve seen the Commodity Prices that support that business remain stronger than expected. Several are higher than when the Company Reported in the second quarter. And china is sorry . Sounds like an issue. Go ahead finish your thought. And china is a key driver there. Steve, thanks so much having a little audio trouble with you thank you back over to you, tyler the markets hitting record highs giving hopefully your 401 k a boost joining us first on cnbc is bob reynolds, president and ceo of Putnam Investments great west financial hes out with a new book today it is entitled from here to security. How workplace savings can keep americas promise. Welcome. Good to have you with us is there a retirement saving crisis in America Today . Theres not a crisis. I consider it a challenge because the system today, which is a public system which is Social Security and a private system which is 401 k and other type savings plans, its working for millions of workers, but not everyone is taking full advantage of it. Thats for sure. When you look at the average balances at putnam in 401 k s, what do you see, and are the people who are wealthy enough funding it strongly but those who are on a closer tighter budget having a hard time building the balances theyre going to need . We find out across our business and this is to empower our Retirement Company that has over 8 million participants is that it is really doesnt depend upon how much money youre making. Its how youre participating in the plan Many Companies provide matches, and what you try to do is get people enrolled and there is automatic enrollments, which is a tremendous benefit you try to get them contributing an amount, and we want to get people to contribute 10 plus. And that could include the company match. If they do that, along with Social Security, they will have more than 100 income replacement in retirement. Of course it depends on the age when you start so 10 of your pretax snk what you ought to be putting away but a graphic we just showed there indicates only half of people in the prime working years are participating in these plans. Why not . Well, people that have it available to them so workplace savings, 60 of americans have it available of that number, over 70 are participating. The other 40 do not have it available to them. Thats a real challenge. But if you add in automatic enrollment, automatic escalation, what you see is participation goes from a 60 , 70 level up to over 90 so if you automatic escalation you mean lets say i nut 3 this year next year up to 4 , the following year up to 5 . Yes, you set the level. And you can always defer a year, whatever, but the goal for everyone should get to be 10 plus and again, i emphasize the point you can you do include the company match. So what is i want to come back to the question i had a moment ago as you look across your book of business, the average 401 k account balance is what . Roughly . Do you know . Its close to 90,000 on average. But thats not going to last very long, is it, bob . No, no, i mean, but you have people in there that are 21, 22. You have people in there that are in their 60s so it all depends. Obviously, if you look at it by age group, the higher the age group, the more they have in their savings, but the average is a number. Can you tell us what the average is for people who are approaching retirement were just trying to get our hands around, is there a crisis or not we see all these surveys, people dont save enough. Social security is going to be ruined and at the same time we had a big series we ran on cnbc where we called the boomers the wealth nest retiring generation in history. People close to retirement, whats the average there i dont have the number in front of me. Its very Company Specific but its more but i would say that people that take advantage of the system and utilize all the features i said, and there are millions of those, have more than 100 income replacement at retirement yeah. So the system does work and thats the point of the book let me turn to something that is topical, and that is the possibility that in a tax reform package, ones ability to put in pretax income may be restricted and it would switch then from what is now known as a conventional 401 k to everybody would be in a roth 401 k . If you lose that ability to put in pretax dollars and its all aftertax dollars, what is that going to do not only to participation but to balances . Yeah, we think it would have a dramatic negative impact on contribution levels which, in turn, grow taxfree over time and the end result is the benefit. So going full roth to us would be bad for americas retirement system and we would be against going full roth. The book is from here to security by how are your beloved mountaineers of West Virginia doing, bob . Theyre doing very well they lost their first game, as you may know. To the Virginia Tech hokies we lost the first game, but we have a new quarterback. Great coach. And looking forward to an exciting season. Bob reynolds. Virginia boys all the virginia, West Virginia, were all part of the same world hes West Virginia. Almost heaven. West, by god. Thanks. All right. Well, outside of West Virginia, a long way from it, if you live in new york city, you know how expensative already is if you dont live in the big apple, heres another reason youre glad you dont. The wall street journal reporting that some private school costs in new york city just crossed 50,000 a year. Thats the first time theyve crossed that mark. Keep in mind, folks, this is not a boarding school. Thats just the day school cost. Riverdale country day up in the bronx now clocks in at just over 52,000 per kid per year overall, the cost of private education in the city has been rising fast are than inflation for a long time. Almost double the National Average for private schools. Only five years ago, when parents in the big apple who pay 400 or 500 for a parking space were up in arms when tuition costs hit 40,000 a year michelle, you live in the city and probably know people that send their kids to these schools. You can charge 100 grand and sell out. Sell out. Have no dropoff in admissions you want to hear the real kick in the pants. After you write that check, they ask you to donate money. Development i mean, it just never ends. Its crazy i dont have kids, thank god, but theres demand they charge what the market will bear and all these hedge finishes managers and all this money, they can pay for it thats the amazing thing about new york city is that youve got apartments that are basically 1,000, you know, a square foot to sell. 2 million for a onebedroom apartment. 50,000 a year for a kid in school 500plus for a parking space who are all of you people . Who are all of you that can afford it . 60 miles that way. Not an anchor on television some of them are. Coming up oil deals and the economy. Qat qatars economic minister will join us to talk about the recent slew of deals. The blockade by neighboring arab countries is having on qatars economy. Well also get his take on middle east relations with President Trump. All that and more after this most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. World leaders are gathering in new york this week. Here for power lunch exclusive, the qatar minister of trades missist m mister althani, it is good to have you here. We would have planned it if anything happens like this as you know in 2014, we have some diplomatic problems with our neighbors and we said that it may come again in different forms thats why we have a clear plan to locate from their side blocking the land border, we know exactly what is important we have alternative goals and supplies we activated this plan immediately in the first few hours. And the consumer or the people who live there, never felt anything in terms of supplying goods, food and consumer goods and all this it is an opportunity for us. We discovered a new market and we open new roots and a road with turkey and with other countries all around the world and immediately all the girls that we used to import through the land border has been diverted through the sea and the air. You mentioned iran. One of the reasons for blockades is your neighbors think you are too conciliatory to iran are you . For example, more than 20 billion with iran annually, we list 2 million annually so we are listing events of 200 million annually in fact, we were very conservative in trading with other companies around the world. But with iran, we are sharing the biggest gap. We continue or we are continuing the discussion with iran of how to manage the field. As you know kqatar is a peninsua is surrounded by all these countries. It was the only door opening for us in terms of Economic Situation and qatar, most of our exports are happening in the sea both of them never been affected and we supply, we are the biggest supplier in the world. Yes we are the second biggest peks employ explorer in the world. We are one of the biggest in the world. We never miss a shift because of blockades and all exports. If they google qatar, theyre going to read that you support the muslim brotherhood, why . Qatar position in terms of supporting neighborhoods, qatar is a country, we dont deal with grou groups, we deal with country we support only countries, particularly of whatever the system choose, for an example, tunisia, qatar supported them. We continue to support tunisia and far for egypt. Qatar supported all different governments there and military and transition government and all others who is in the power economically, you are the 15 tax rate and no wealth tax and the highest saving breaks in the world, how safe haven, right we are blessed and we are using this gas for the well being of our people. Thats why the qatar People Living one of the best standards to their living. And, in fact, we talk about economy of qatar guess what, what they are exporting to us more than what we export to them. So, the trade balance is more towards them they lost the qatar market when it comes to export so this is one all the transit that went through the blockade country are now by the sale or others. They lost it also and all we have to do is just find alternative and we also find the alternative. Our projects are on the schedule our economy of development is on schedule and with the locate accelerator to implicate the plan himself managing and the Economic Development we have to get on time as well unfortunately, we are hitting this commercial break. We do hope the situation gets resolved with the blockade, thank you very much for coming thank you very much alread all right lawmakers are looking into a possible action of facebook and other tech giants er their roles, whats next for facebook, next some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Welcome to this second hour of power lunch, i am Michelle Caru caru Caruso Cabrera battle of the sexes, there is new battle showing whos the smart money when it comes to hedge funds. They are the nfls most valuable football team. We have the list staggering number. Second hour of power lunch kicks off right now. Thank you for joining us, i am brian sullivan. Lets check a look at our numbers. Dow industrials are up to 73 points nobody out there seems nervous we say that because of the so called game. The vix index is dipping below 10 things are very calm City Group Bank of america, Morgan Stanley are your group winners. It is about planes, trains and technology boeing, all time highs and nivia and microsoft. I am tyler mathis everybody that according to sources familiar with the matter wall street journal reporting shortages are expected when preorders for apple iphone 10 begins in late october Hurricane Maria is intensifying and a category three 120 Miles Per Hour winds of the storm moving through the North Eastern caribbean. Facebook under fire once again today. Now the focus is under facebook role in possible russian int interference of the election Julia Boorstein is gojoinings more reporter adam schiff, says quo quote, they need to be forthcoming because there is a lot we need to know about this. Facebook handed over to mueller of copies of the ads and detailing of targeting criteria used thats more detailed than facebook provided by congress. The 3,000 ads reportedly showing those ads briefly to congressional staffers we take a responsibility to protect the election seriously and billiuilding the team devott this so why is facebook making the ads publicly available in a source familiar of the situation says because of federal law ongoing investigation. The company may face certain limitations. As michelle just mentioned of the latest scrutiny of facebook practices of the ability to target based on antisystematic terms. Julia, thank you very much. Lets bring in the person who knows the topic as well as anyone, in the famous antitrust case back in the 1990s and 2000s, he saw where it was headed quote, the most important contexts of regulation in the future will affect internet commerce where the architecture does not enable secure tractions where it makes it very easy to hide source. Professor, welcome to power lunch. I am glad you are here with us thank you for having me how big of a threat as it is to democracy we saw in the last election is just the beginning of the threat because what we are seeing is both the fact that most americans dont actual lino the same story we dont have the same facts and the facts that we are so vulnerable to be hacked by people who have a significant interests in mocking of what our elections do we dont have any clue about how to solve either of those two very different problems. So, which leads to the next question, is this a are there problems with the digital age and democracy that could be solved by regulations. It sounds like you dont think so because we dont understand the problem. Yeah, i mean i am so skeptical of our own governments ability to think sensibly here. Not just because people are limited or they dont know what they are talking about thats true, too also because we dont have a government that represents us. We dont have a government that begins to care about what average citizens care about. Most of the work i have been doing in the last ten years why do you say that, forgive me for interrupting. Thats an interesting thought. What do you base the assertion that the government does not care about individual people that it is not representative right take the way we elect the president. The candidates for president care about basically 12 states those 12 states happen to represent 35 of america the part they represent is whiter and is older and focused on 19 century and 20th century of industry. We have a president ial system where we elect the system who cares not what the average system cares about but cares about this weird mix of battleground states, pennsylvania and florida and ohio and north carolina. It is no surprise that when most america looks at our president that we can say the same thing of gerrymandering in congress or the way congress raising money they say what the heck, this is not who we are this is all interesting i love to get back talking about facebook and google. If you are instrument when it came to the prosecution of microsoft, what do you think should be happening now with facebook and google and all these Tech Companies well, the first thing is exactly what congressman schiff is pushing for we need to know whats going on. We have to confront the fact that part of the reasons that facebook does is sos troub troui facebook is giving the users what the users want. It is based on what it knows the people want. Mark zuckerberg is in there twisting the dials, sending messages one way or another. It is the machine. Part of the problem we got with democracy, democracy is in part about giving people exposure to ideas they dont necessary choose to want to see. That we got to have a way of enabling them to see more than just what they choose to see and if you give them just exactly what they want, the system is vulnerable to be hacked or plagued by people who are trying to play the prejudice as they know people have or the fear you wrote about this. 17 years ago, lawrence, right when the movie matrix came out and i made the analogy, how do you regulate codes, how do you regulate math and codes . One of the biggest problems is people dont begin to understand the Way Technology controls us or regulates us or how changing it could regulate us differently part of the problem is technology is so obscure because they wanted to be obscure. These algorithm that gets used to shifting information around are proprietary. These algorithms are being used to i am really trying to get and you still have not gotten us to where we go or what do we do yes, i mean in the twitter age, it should be 140 characters, i am sorry, i am a lawyer and i am not good of 140 characters thats all right. The first step is understand whats going on here thats beginning to happen again, i know this is not what you want to hear from me here is what i want to say we got to get a democracy that represents us. That problem is, i think much more difficult than the problem i am trying to figure out what the right way to deal with online content is. The problem we face is we got to solve both problems at the same time it is fascinating enough and complicated as all get out well have you back to talk more, thank you. Thank you for having me big tech in washington cross hairs, will analysts turn away from Companies Like facebook brian, good to see you again you heard of what professor lessig had say think all of the above or none of the above of facebook and google the first is questions have been raised whether or not facebook gave all the data that it had on the russian matter earlier and then turned out they found it later is that from a marketer perspective because they are questioning whether or not facebook is providing accurate data when it comes to Campaign Planning tools or delivery for that matter there is less trust of the data and not the product itself that has ramifications the bigger ones when it comes to the europe union it will have dramatic implications for facebook and google for others. Regulations are coming out as of may of next year and basically imposed of obligations of facebook and in terms of how they use and what to find of data if you think of the way which European Union is going to weigh on facebook. The regulators does not trusts the companies to do the right thing necessarily. I think thats kind of big breathe through. Government will not trust the large a better word are acting necessarily in the Public Interest everyone if the company do think they are doing good another point is where or not, they are advertising actually works they analyzed all the google words and realized the vast majority of them did not work and said you know what, we are not going to pay this at all i cannot believe people google millions of dollars. That sounded really damming. What if that spreads well, i think thats the more sophisticated. A lot of these people are being targeted of the brand of old schoo school and fashion when you dig into Digital Media, you find not an effective to be clear, Digital Media can be effective, the reality is it is not a deal end all i think because for r so many years, digital did get a pass. Theyre getting challenged moving forward brian weisser, i am sure well see you soon appreciate it. Here is whats coming up. Rbc initiating coverage on the sector which stocks to their favorite tomorrow, President Trump will speak to the United Nations General Assembly nfl tv ratings are in decline, is that hurting the teams values well bring you the latest numbers, all that and much more here on power lunch. My experience with usaa has been excellent. They always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. For tech advice. Dell Small Business advisor with one phone call, i get products that suit my needs and i get back to business. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Taking a look at biotech names like kite sarepta and biogen, just to name a few 70 for sarepta and 22 for biogen if you are investors getting into the action, you may wonder which stocks are good to watch right now. Out with the new note listing out their favorite names in the space. Mark harris, global head of rbc capitol markets. Good to have you here. Thank you very much guys. The run continues . We brought together 17 of the best guy to cover 85 names because we think there is a lot more to go here. Okay, yeah, yeah, whats the best name . Okay, i kind ofpulled off the five names that i thought is the best ill start with the large cap i will start with we think there is multi billions more to go, celgene. On top of that there is a great information parttime liipeline have in the background here. Again, we think thats still stock is up 23 year to date but it could get more. We do, it is chrome disease for another 2 billion so there is a lot there thats just not well understood thats a big company, i like to call Small Company thats going to get big thats how you get rich. I am taking a no. Abeo, therapeutic again, this is an area that everybody hears about and they hear gene therapy out there. This is sort of the i would call the earlier stage of the two, if you want something further along in abeona therapy. These are biotech we are talking about. You got to decide where you want to be in the risk spectrum celgene, you want to pick something that you throw out there. We are calling this the next big mid cap biotech techniques the name thats going to run neck thats a 650 million market for them again, you have to decide where you want to be across the spectrum and where you are you can go early stage and it is to some degree aveona is up 230 today it is this is a white uey could gof their trial. You look at biotech in generals yes, it is a risk. There is no doubt about it you have to understand what you are buying into. But, there is a reason why institutions look at these names and there is a reason why we pick the names that we have. We pick the ones that we did, we think these are some of the best ones, aveola marc, thank you very much thank you yguys good to have you on well, there you why some people are willing the pay a Million Dollars for a watch that does not do anything except telling time. Plus, the dow and s p 500 is hitting a session low right now, well look at whats behind the move even thgh touhe index is positive power lunch will be right back ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right Financial Advisor, life can be brilliant. Ameriprise we get a gift for mom and dad. , and every year, we split it equally. Except for one of us. I write them a poem instead and one for each of you too that ones actually yours. That one. Regardless, were stuck with the bill. To many, words are the most valuable currency. Last i checked, stores dont take words. Some do. Not everyone can be the poetic voice of a generation. I know, right . Such a burden. The bank of america mobile banking app. The fast, secure and simple way to send money. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. The greatest population shift in Human History is happening before our eyes. Sixty to seventy Million People are moving to cities every year. At pgim, we help investors see the implications of longterm mega trends, like the primetime of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure, and emerging markets. Partner with pgim, the Global Investment management businesses of prudential. By all measures, it is still a good day thats what the headlines are reading tomorrow we are at session lows right now. The s p and the nasdaq, they are at their highs facebook, google and amazon, they are down. Facebook was about two bucks more than about an hour ago. The market overall is still up these are important names, facebook, more than 100 etm. Everyone though he did not articulate quite of what to do with these companies, he was negative and influential with the sector. I think, listen, hes one of the lead is it an impossible topic . It is tough. But, hes influential. For 300,000, 300, sorry. I add zeros to everything. Apple will sell you a watch that makes phone calls and monitors your heart rate. Why is somebody willing to pay nearly a Million Dollars for a watch that only tells time tyler, earlier this year the swiss watch maker unveiled a new honda watch price at 1 million, it sold out all 75 pieces before it was announced publicly. It had a 72,55. Those watches were sold out when it was released the watch industry is taking a beating and kind of keep on taking of course, the advent of smart watches. Rolex is the worlds top watch makers by sales. Now, rishard neil, tells cnbc this morning,. If you ask in the age range between 18 to 30 years old, the watch that makes people dream of the most is mille. They aregrowing steadily at 20 a year everyone as the rest of the swiss watch industry is declining every year for the past three years yeah, amazing thanks robert thank you, President Trump before his big speak of the General Assembly tomorrow. Coming up, well talk about corruption up close. Blasting the u. N. Is a bunch of cl kleptokrats. Stay with us were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Hi everybody, i am sue herrera, London Police making another arrest in the london subway bombing a latin chicken restaurant became the First Property uk police raided as part of their investigation. They arrested the suspect who has not been identified. Senate minority whipped durbin is pushing for daca especially those who want to serve in the military. A News Conference in chicago. Thats why the daca program which the president announced two weeks ago was going to be eliminated it needs to be replaced with a permanent law thatll put away the fears that is many people have now of what to come in their lives. Forbes magazine says the Dallas Cowboys are not the only nfls most valuable franchise for the 11th Straight Year they are the top valued teams in the world. Their worth increased 14 to 4. 8 billion thats more than the England Patriots you are up to date, michelle, back to you. Thank you very much sue s p and the das nisan nasd falling. Lets get to pop bob pisani. We want to watch the market leadership sectors here and nvidia just slightly off many of them at 52 weeks high there is a little bit of concern of the toy sectors today matell is down the trend is clearly in fact full, folks. So microsoft and cater pillar and boeing and not just nvidia but micron and Texas Instruments and most of the other big names like app materials are sitting at its highs. President trump today he meets with World Leaders eamon javers has the details a couple of events today, meeting with Benjamin Netanyahu. The president expressing what you can call a moderate level of conference that there maybe a deal between israel and the palestinians in terms of the east and middle east here what i say the president said we are going to be discussing many things, among them peace between the palestinians and israel will be a fantastic achievement. We are giving it an absolute go. I think there is a good chance that it could happen and most people would say there is no chance what so ever. The president there is saying there is a good chance it may happen the president earlier today talking about u. N. Perform and the way the United States wants to see that entity to operate in the years to come. Here is what he said we seek the United Nations that regained the trust of the people around the world in order to achieve this, the United Nations must call every level of management accountable, protect whistle blowers and focus on results rather than process. Michelle, xi jinping is not the u. N. General this week we are told the president and the chinese leader did have a call today in which they discussed north korea. Thats another issue in terms of Foreign Policy on the president s plate today and a whole lot tomorrow as you mention with the big speech coming up. Eamon, thank you. Speaking of our u. N. Meeting, it is a chance for americans to get an up close view of corruptions. Keep our eyes on the fat kleptocrats. Good to have you here. Thank you good to be here. You think that this is a week full of corruptions, explain it is the worse week of the year what happens is everyone around the world who has any position of power flies in and there are ministers and wives and children, they all get picked up at the airport right to madison avenue, they just strip everything from the shows. You name it and they buy it. Pack them up in their private jets and go back home. They are using who is money money whose money to do that . Our money here is how it works we tax waitresses and plumbers and everybody pays taxes we pay taxes to our government and the government makes contributions to our Financial Institutions like the imf. Those institutions in turns make loans or grants to developing countries that are corrupted, those money can be used for roads and bridges and sewers other money should not have to be spent so there is plenty of money to steal. Angola is a perfect case of questions not being asked, president santos, his daughter is rumored to be the richest person in africa, worth 3 billion without asking the question, how did the president s daughter become worth 3 billion and yet people in angola are living on 2 dra dollars a day. Miss santos denies any corruptio corruptions. So the money goes into the pockets of the corrupt leaders of the country did i hear you say that the Development Money is getting spent on legitimate projects and that means that other money, otherwise would have had to go to the budget gets stolen. Is that right thats exactly right. Money is plungeable money is coming in farmers does not care if money comes from tax dollars so if you have 30 billion of World Bank Money of the last 15 years, 30 billion and we just had one of the worlds biggest Corruption Scandal with three presents, you are talking about brazil another was impeached for official corruption and the third is indicted. Move the u. N. To another nation would it less desire for a place to live. Would it increase the corruption because if you move it to a corrupt country, would that increase the corruption on another level . Well, as long as they are shopping [ laughter ] but, but, let me go back to something. Are you saying that really the yu na United Nations per se is the corruption or you are pinpointing the worlds banks. They come to be here i think the u. N. General assembly is an opportunity for everyone to gather in one place. The International Financial institution, the imf and world bank, they were all for noble purposes, development and advancement of people. That many people would say thats a fail. Those institutions have failed what i am pointing out is that because money is fundable. If you know that a country is ambassad corrupted and you dont do anything about it and dont make any effort to hold politicians in this country to account, you are never going to make any progress as to what to do about it of a lifestyle audit . You cannot be poor and yet afford a 39 phone bill like al capone did in theory, you can do the same in the private sector,we can simply transport private sector rules to the Public Sector there are databases of a Million People who are so called politically exposed of persons or pets. The private sectors those databases are used to figure out whos exposed and who has the power and who maybe corrupted. If they are corrupted, you have to know your customers and you cannot do business with them so crime corruptions about Business People paying off government the last managing director, rodrigoe, Dominic Straus kh khan this is quite an institution that we are entrusting with development. She always says that was a Political Convention i have no doubt this was political. Jay newman the raiders raving back to Marshawn Lynch dancing how 32 owners may feel just as good today when you hear of the values of the nfl franchises you may want to take a look. Experience the lexus rx with advance safety. Standard. Lease the 2017 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Can i get some help. Watch his head. Im so happy. Whatever they went through, they went through together. Welcome guys. Life well planned. See what a Raymond James Financial Advisor can do for you. Power lunch. Dallas losing to the broncos, 4217. Cowboys owner jerry jones still has a reas had a reason to smile today. The cowboys is expected to be worth 4. 8 billion the giant and the patriots and 49ers round off the top five, you can see each of them at 3 billion or more. Joining us is editor curt, welcome for joining us how much higher in value than the cowboys today than they were cowboys are up 14 , 4. 8 billion 1. 1 billion higher than any other franchise in the world, soccer and football and baseball jerry jones is killing it off the field. On the field, theyre okay, they were good last year, we saw they got some holds. Does winning matters when it comes to the evaluation . Less so in the nfl. Can you go 016 in a row and still see your teams value goes up because you are getting a check from the nfl for 250 million before sell tickets and beers and jersey how much does owning his stadium help him just as owning the stadium is going to help the falcons whose values rose as well jerry is a master maker he generated a ton of revenue outside of the nfl with tours of the stadium. What jerry really done is he operates, the cowboys is the only team that produced their own merchandise. He started this merchandise business for his clients like ufc and other colleges that signed up. So jerry has really leverage the cowboys the do that. He started a legend and he started another tech company where hes rolling up all these youth apps if we see a deal that was well in our audience, the rock, basketball team. Will that move the evaluations of teams and other sports . What reseeingwe are seeing il sports, teams in la and the clippers sale and so as the dodgers, we are seeing a big premiums for those big market teams. We got a lot of billionaires out there. Is there a small market teams that punches its weight in the nfl. The green bay is the smallest markets out there. Theyre not being billed any time soon. Theyre top ten in the league in terms of revenue thank you very much shares of tesla is up to 80 this year, hitting a new all time high. Can it go any higher trading nation is up next. Take a look at the nasdaq, a big cap leading the decline. Bh why . Well find out a lot more powerful than that. The governor has declared a Winter Weather emergency. Extreme risk of burst pipes and water damage. Soon, Insurance Companies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. They always refer to me as master sergeant. They really appreciate the military family, and it really shows. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. There arent a lot of female hedge fund managers. Those who are doing it are putting the men to shame leslie picker looking at female return in the hedge fund industry. Hey, thats right, a small group but a standout run one for 2017, women producing double the returns of the broader industry for the first eight months of the year according to hfr. Hfrx women index jumped 10. 95 in the year, that compares with their broader gauge of Hedge Fund Performance up 5. 36 . However, both of those returns trailed the s p 500 up about 12 over the same time period. Still, this is shaping up to be a big year for women hedge fund managers, producing the most returns of any year over the last decade. Additionally when comparing their returns over a longer period of time, they consistently beat out the broader Hedge Fund Indexes and yet there are so few women Portfolio Managers at hedge fund one study found only one in 20 firms employ women pms those include oak hill, blue mounta mountain others attribute it to the lack of women who study math and finance, guys. Its so hard to get there as a woman, i bet the very best who get there and hence why theres maybe outperformance. Thats a good point because there is a much higher barrier in terms of, obviously the finance industry is known for its kind of bro mentality as we see in tech, in investment banking. All these different types of businesses have that stereotype, have that reputation now, of course, as we mentioned the firms that do employ women, not the case across the board, but it certainly could be a big reason why we see so few of them. Thanks, leslie. Thank you. Meantime, tesla shares rising to another record high today. Lets bring in the trading nation team, rick ross, mike, youre not a fan of tesla as an investment why not . Well, when i look at tesla, i see a stock thats hitting a double top here. I mean, theres so much going on with tesla, itses cars, theres the semitrucks, the batteries, theres the solar. You know, theres the space ships. Theres a lot going on elon musk said he doesnt really care about stock price or profitability. I find it a hard stock to value. That profitability lack of there is very reflective they spent there a 2. 2 billion first half of 2017 theyre going to have to go back to the capital markets, thats really the stock markets i find it hard to understand, hard to find a road to profitability. When i look at a stock like that, its not an investable stock for our style or me at this time. A lot of people would find it hard to agree with that opinion. We appreciate it, though rick ross, Balance Sheets are for other companies, i hear mikes points. What are they saying now yeah, brian, never let the fundamental l st get in the way of a good stock chart. Thats what we have with tesla a great stack chart. Its a decisive breakout from a textbook symmetrical triangle. Look at the daily chart. Hug the 100 Day Moving Average as we talked about, wetriangle that projects upside to 500 sounds lightningke a big round. When you zoom out, what i really like about it is the weekly chart. When you see a breakout from a multiyear trading range such as this, and you can look at any number of stocks, it tends to give rise to an impulsive move higher were in the early stages. 500 upside target i like the short term breakout positive chart. Mike is not a fan of the Balance Sheet but the momentum has been with the name. Guys, thank you very much for for more trading nation go to our website, tradingnation. Cnbc. Com. Check please is next. And now the latest from tradingnation. Cnbc. Com and a word from our sponsor. 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Look forward to your 401k plan. Check please. All right time for check please. Lets talk about the emmys, okay i think its an alltime low rated emmys. The demo drop. You wonder how much of that can be attributed to politics, about the seeming left bent of the emmys, a lot of president ial bashing. A lot of people found it funny. I did. Maybe it is. I laughed my fanny off when sean spicer came out with his rolling people in the audience looked insulted and upset i didnt see that. That was meant to be funny and some people were applauding and jaws were dropping when he came out. Like there, i dont know who that is. Shes not laughing. Shes, like, almost why is he here . Disapproval thats not a laugh. Going to have to have a conservative emmys, conservative oscars. People didnt even know it was even on. You said you didnt know it was on. No, but it was very well it was in all the papers in the previous 24 hours it was going to be very antitrump, very political. The host was Stephen Colbert. Signal number one. Why is Stephen Colbert winning in the late night ratings . Because hes gone all politics and he is i thought he was a right wing conservative pundit. That was the other guy. The other Stephen Colbert. That was the other Stephen Colbert. All right. Thats it. Thanks for watching power lunch. My chargers are still terrible. Closing bell. Hi, everybody, welcome to the closing bell on this monday, im kelly evans at the new york stock exchange. Welcome back. Thank you. Were 2,500 at least we were. I missed it. While you were gone there yes, another record day, another potential record close for the markets. Any close higher for the dow, the s p, would be new highs as we do spend time above 2,500 and were well above 22,000 on the industrial average here. Its been quite a run the tech sector is underperforming today, though, in part because facebook is under fire again from