Welcome to power lunch. Heres where we stand with the markets now. Look at this the dow here right near session highs, higher by more than 300 points that was after yesterdays big market comeback really starting staging momentum in the afternoon. Tech driving the rally today nasdaq up. And check out defense names like lockheed martin. Both hitting record highs today. Higher lockheed by 2 . Northrup by more than 2 despite the fact stocks are rallying right now, slowdown fears are still looming like a dark cloud over wall street. Steve liesman joins us with a rapid update on gdp. The numbers in the trailing quarter were good. But what is the future well, the trailing squaurt is where the action was this time around added inventory and this is the most boring part of economics, but may be the most influential. We had a run off and it ran off more in the Second Quarter remember the 2 from the government when it first came out . Were down another tenth when others were down another tenth today. Maybe the good news, maybe not, depends on where you stand Third Quarter still tracking 1. 9 goldman just took a tenth off the growth Second Quarter and put it back into the Third Quarter so you dont need to know all this stuff what you need to know is that if you average up the four quarters, were at 1. 97 call it 2 separate note, just want to tell you, the president again tweeting out blaming the fed for the strong dollar and say iing its hurting the u. S Companies Like boeing, caterpillar and deere. He calls for substantial fed cuts to weaken the dollar. That doesnt scare me so much right . He can make a case for half full, half empty either way. 4 . What happened to 4 which we had about a year ago . Whats happened among other thing ss is this idea that the run rate of economy is really 2 is being proven correct. Well see. We hope we can have a little more productivity. But we know we cant really change the demographics because we dont know that the genetic ability has been created for people to birth 25yearolds yeah. Good darn sure of what the working age population is. Up or down, little bit of slack here in general, 25yearolds are going to be next year in this country is is pretty well set. What is not set is the productivity they work at. The idea a combination of those two equals roughly 2 . All right, steve, thank you the major averages now are strongly higher and the sectors then have been losing this month are back to leading the way. Bob pisani is at the New York Stock Exchange to help us make sense of it. Hi, bob b. Hello, courtney we had quite a rally since the monday bottom. Its pretty amazing. We have closed the gap with the friday close that was 29. 32 on friday thats where we are. Thats almost 140 points a 5 range in the s p buying yields have risen off their lows since china currency has stabilized thats why weve got the rally back and so have stocked led by cyclicals like technology, industrials, consumer discretiona discretionary, theyre flat for the weak, however, much has been made of the utilities, consume er staples theyre all up this month, while the cyclicals like energy and industrials and technology, theyre down still even with today. Whether the defensive sectors remain strong depend on the global trade issue, but one thing for sure, this whole thing with defensives, its crowded right now. A lot of investors have piled into utilities, drive iing up te price 15 and these stocks are more expensive now more than 18 times forward earnings much higher than average of 15 times forward earnings utilities and reets, they just dont matter that much if youre broadly invested why . Only 3 of the s p 500 technologys 21 the top four sectors including health care, financials, industrials, theyre about 60 of the s p and thats really what matters guys, tile lehr, call it the triumph of indexing. Its a tough trade if you want to buy 3 of the s p thank you s p 500 basically flat for the week almost wiping out those losses from the turmoil we experienced most acute ly maybe on monday still carl icahn told scott wapner today he sees problems out there. Saying he doesnt think the fed just lowering rate ss the answer adding hed really like to have the china problem settled. And that we have to worry about a quote full squal recession so how should investors digest what he and others are saying . Lets bring in david katz and ernie. Earnie, are you worried there ma be a full scale recession in the u. S. Within the next 12 to 18 months tyler, we have built a economic model which suggests to us that six nine months, six to 12, we dont see a recession happening. However, we agree with mr. Eicah on the china issue we think thats the Biggest Issue because as you listen to corporate earnings, one of the things thats mentioned is the fact that the trade issue, the dollar, currency in general, is a big negative or at least a cloud, a dark cloud in terms of whats happening in Corporate Board rooms in terms of Capital Spending so weve been looking for volatility for a while weve been advising our clients as such and we think it continues and woul would agree that the trade issue is is a big near term problem occurring on the horizon. So david, let me ask you this x question if the economy has slowed from a 4 run rate in one of the quarters last year to something around 2 , is that slowdown attributable in your view to the tightening that the fed put into the economy all for the past three or four years up until december of last year, number one. And will further rate cuts be the kind of tonic that will juice the economy into the future and i guess the question reason im asking that is its one thing to cut rates from two r or two and a quarter down. Its another thing like in the financial crisis to cut them from 5 to zero. First, we dont think the fed is the cause for the slowdown. We think its 100 china trade related. We think the last guest and carl icahn have it exactly right in terms of future cuts, we think it will help the financial market, but not be the catalyst to help the economy. We think again that is trade we think the economy is is in good shape and accelerate or be sound fchl the china the fed is not going to be able to correct that this is a selfinflicted wound having to do 100 with china trade. Zpl if if you think we are six to nine months off a recession or more, how are you looking at the market here today . Yes, weve swung back higher, so maybe it isnt the moment to buy, but are you looking for growth or value . Thats a great point and again, volatilitys been the issue but one of the things thats been evident is that event in the last couple of days, which was well spelled out by bob pisani, is that market averages have done well. But whats doing well is the same names essentially that have been doing well. A lot of the bilg growth names so soowere seeing a lot of tras going on that are favoring these issues with growth having outperformedd we would be more favor bable to value type names those with more attractive valuations we favor dmekic over international and would be looking for dividend yield in the sub 2 Interest Rate ernie, do you have specific names you can suggest to our viewers . Sure there are several names that might be of interest. One, jpmorgan. Obviously the financials and banks in particular have been at least less favorable not favorable at all with yield curve but heres the situation were over to three quarters of the revenue is domestic and streaming an attractive valuation. Another name, verizon. Yielding over 4 building out a terrificwork a stock or a company universal forest products, market caps closer to 2. 5 billion. Not much on the income side, but heavily oriented in the construction and Home Building area toward domestic, so again, more domestic, take risk off the table, but longterm, we like eck quities over fixed income. And david, you also like jpmorgan what are some other names you might suggest here we do we think the financials have been unduel lly beaten up we like pnc. Bbt. Goldman sachs on the financial side and eaton corp. Is is at a very activetive price. Fedex has gotten massacred we think if trade ever settles down, theyre in a very good position and at ten, 11 times earnings advi is a haelt care company thats been beaten up brutally theyve been buying aggressively it pays above a 6 yield which is absolutely safe so theres still a lot of very good names to buy out there if you can turn down the noise on the daytoday and have a six to nine month time horizon. Well leave it there. Thank you very much. Thank you you bet coming up, the issue for apple. The companys efforts to replace falling iphone revenue with its Services Business and one stock that is rocking. Roku up 300. Yes, 300 , this year so what is roku doing right . Were going to talk abt. Plus, what are the risks ahead for the markets . Were going to ask steve eisman. Stick with power lunch. All coming up. Doing so many different things. S vo thats why verizon lets everyone mix and match different unlimited plans. Sebastians the gamer. Sebastian. 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Thats why Xfinity Mobile created a different kind of Wireless Network, with a different way to do data. One designed to save you money. Now you can share data between lines, mix with unlimited and switch it up at anytime. Design your own data with Xfinity Mobile. Its wireless reimagined. Simple. Easy. Awesome. Shares of apple has been stuck in the mud and there are a host of red flags for the stock. The firm sees no true recovery in apples hardware business and believes theyll see a slowdown in its key sector. Here is tim long, Senior Research analyst at barclays he holds an equal rate rating with a price tag of 192 so despite your name, i guess youre not super long here explain your thesis on why you think were not going to see this recovery in iphone sales. Continued to struggle, weve seen the units and be coming under more pressure devices. The business which a lot of the bulls point to it is a good Growth Business particularly if they dont build up this installed base with first time users that might come under pressure valuations continue to rise for this stock despite the operating margins comeing down 650 points on the last few years. Thats with the better is Service Business growing faster. You dont think its people are hanging on to their phones longer the innovation isnt enough to spur it . Its getting more competitive globally in that high price tier its a tier thats been under a lot of pressure. We did a little analysis on pricing and this is the first year where we really saw a major step down prices have gone up the last four, five years and were not really expecting much of this september launch next year, there will be 5g phones, so theres hope there. But were a little skept abl on that as well there are a will the of people who are skeptical that masses of people are are going to want to step up to 5 g time will tell a lot of people want the latest and greatest do you think apple needs to cut the prices of its phones thats unfortunately one of the things theyve had to do in the Chinese Market where its very competitive and weve seen the margins comeing down a lot of that is due to the hardware business. Likely that will remain an issue for them now we have the risk of tariffs. If were adding 5grk, right now a few hundred dollar premium for that there are a few dynamics that might make the prices of the devices go higher in time where people are trading down u. Is the regulatory pressure that apple has seen from the app store say from europe with spotify filing a complaint that its very difficult for them to compete . Is that part of the reason for the call for the services . A little bit. I think its mostly about about the install base they are still growing their base, but we think thats largely second hand phones so i think this service attached for those users will err errs will less most of its tied to that. The regulatory issue, getting into original content, its making it more competitive so they might see pricing measures b and thats part of the reason for that operating margin theres a lot of investment that goes into these new businesses you dont just create a new business and roll it out to your billish users and it works youve got to invest very true equal weight on shares of apple. If you want to bet on a stock that will benefit from steaming, theres netflix, but you could take a look at roku. That ones soaring after it reported better than expected results, now up 20 today. Julia boorstin is in los angeles with a live look hi, julia. Thats right. Look at those shares up. Been called the arm as dealer in streaming wars and is benefitting from all these ry rivals as they cut the cord. The company accelerating Revenue Growth topping 30 million accounts and growing average revenue per user, 2 in the quarter to over 21. Now here is why roku is cashing in first the more people cut the cord and look to access new apps, the more opportunity there is to still their Technology Already the number one streaming Technology Provider powering 41 million over the top streaming devices and smart tvs in the u. S. Second, new services will advertise to koiconvince peopleo subscribe and if they sign up through roku, it gets a cut of 20 to 30 . Roku takes a bigger cut of advertising generaled from its channel which streams free, meaning ad supported tv, movies and news now the more people watch, the more data they have to target asked to them which makes those ads more valuable. Now with all these different pieces in place, analysts say they see huge potential for international expansion. You see shares up 20 today. 297 year to date. What a run. Certainly a stock to watch thank you. Welcoming up, one problem from the financial crisis is popping up again were going to tell you about that and well talk to a man who predicted it correctly the first time around. Steve eisman is joining us stay with us you have to know the individuals youre serving to understand their needs. Working with ibm watson we can bring together data spread across dozens of departments. That gives us a fuller view of the people we serve. Dear tech, dear tech, we need to look after everyone in our community. And we want to help our fellow human beings. I felt completely helpless. Trashed online. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. The european markets are closed, but certain etfs that track italy are moving forward on reports that the party leader is saying theres no longer a majority support to italys government and hes also saying theres a crisis in parol ltment were look at i shares italy etf. Down about. 4. Session lows also saying it is necessary to hold fresh elections there has been friction building between he and the Prime Minister so were looking at more developments on the store right now, italy etf is is lower an the euro also dropping to 111 against the dollar back to you. Thank you short movements there. Now over to mike for trading nation thank you very much we are looking at gold prices they are hitting pause on the recent rally the met dahl racing higher this week to reach its higher level in more than six years is it time to catch in on this trade . Craig johnson and nancy tang lehr are your trading nation team been a very aggressive move in gold up 100 in i guess two weeks was only at you know 1300 or so not that long ago, so is it getting overheated what do you think the trend looks like mike, i think if you ar going to break this down into two parts. First on the shorter term, i agree. The its starding to get ahead of itself. If you look at the chart of the gld, i would trade it this way wait for this stock. Take profits here and now. Wait for the pullback then be a buyer on the pullback and confirmation f support because in the longer term set up, you can see there could be a measured objective toward about 160 here because this is a meaningful topside breakout. All right nancy, as an investor, actually in the shortterm, gold has done its job as hedge weve had a volatile stretch here in the stock market bond yields going much lower how would you deal with it thanks, mike. E we talk ed about this the gld on july 18th and its done just what it should outperformed the s p by about 600 basis points its flat with the market so as an investor, i look historically and say okay, for the last ten years annually, the gld has raggrag ragged lagged the s p. So if i believe that slowing Global Growth is going to infect the u. S. , that Interest Rates are going negative, then i buy gold if i think as i do, that things will consolidate, well get a china deal, not great and exwiitiexwiities will begin to , then you sell here and invest i dividend paying stocks all right i guess a hedge on the downside acts as a drag on the upside thats the trade off you face. Craig and nancy, thank you very much for more trading nation, head to our website or follow us on waiter tyler, back to you thank you very much ahead on power lunch, the investor who accurately predicted the financial crisis shares his thoughts on the market now and he will tell us what his current big short is. Plus, Mortgage Rates tumbling to three year lows. What this could mean for housing and ride sharing round up. Lyft shares soaring on its Quarterly Results and uber on deck after the bell. Well tell you everything you need to know when power lunch returns. Stand up if you are First Generation College student. Stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Dozens of immigrants who were detained in mississippi have been released i. C. E. Releasing video of the operation in which hundreds were arrested during raids at seven Food Processing plants indias Prime Minister is says the downgrading of indias administer from a state to a federally controlled territory will help end decades of terrorism and accesepratism. This in a nationally televised speech protestors in karachi, pakistan, took to the streets to show solidarity following the move by india. More than 500 people have been arrested since india imposed a clamp down in cashmere and one of the cofounders of the Village People has died. He came up with the idea of high camp and high energy disco rock while he was in new york he is also credited with co writing some of the groups biggest hits including ym krrcan the navy and macho man he was 82 years old. Thats the news update this hour back to you. Thank you very much, sue. Stocks surging back today. The dow up nearly 300 points right now, were up by nearly 1 thats up a whop lg 900 points from yesterdays lows. The s p and nasdaq also higher nasdaq higher by almost 2 here and market is rallying, but kraft hines just cant catch up. Get it the stock is hitting a low after announcing it would delay its Second Quarter earnings finding. Some data showed further erosio within the business. Kraft isnt the biggest oneday victim after the earnings season zillo dropping 18 . International flavors is is down 16 and tesla falling 13 after reporting a wider than expected loss and beyond meat dropping 2 12 for the same reason. The oil market is closing. Lets head to the commodity desk with dom chu oil prices are snapping back. West texas prices, 52. 68. 3 to the upside brent crude futures, 57 its a reversal where a surprise devaluation of the chinese currency in an escalating trade conflict between the u. S. And china pushed many Commodity Prices lower theres also an added energy specific story in that saudi arabia has been looking at ways to stem the recent fall in oil prices its also been looking for dialogue with other Oil Producers to that end as well. The kingdom remember the biggest exporter in the world and snapping back. A decade ago, the bond and assigned grades. Conventi conventional wisdom is is that they no longer exist, but according to a new investigation, thats not the case lets bring in one of the reporters who conducted that investigation. Welcome. What did you do and what did you find because this was a very deep dive yes, it was we analyzed a large sample of bond sales in a structured finance market bonds backed by payments and residential mortgage, Student Loans and the like and we wanted to see if there were signs of rating inflation so we looked at all six firms. There are new ones. The financial crisis, three firms challenged them. Control, dws and morning star. We found they showed a tendency to order higher grades and part of that reason could be because if youre a smaller rating firm if you want to get chosen to reveal, issuers still get to control who hires they hired the firms to rate the bonds so if youre not get iting the most favorable grades, theyre less likely. So the money was following the higher ratings and thats how they were marketing themselves no, the way the rating agencies market themselves son analytical excellence. We provide the best service to customers, to investors who they call their customers, providing time ly reserng and the like. But at the end of the day, its not the investors who pay, its the bond issuers and they have an incentive to pick the rosiest ratings because the more money the vest Iinvestment Bank makes. Were there a certain type of bonds that you found the issue with yeah, commercial mortgagebacked securities was the one where weve heard a lot about rating inflation we saw those patterns were pronounced and found deals where it was clear that the ratings that were assigned to them werent merited. Is the problem as acute as it was prefinancial crisis . A lot of people as ebs in the introduction thought that this was a problem that had been posed out of the system. But clearly, it hasnt no because its saying, its the same business model. The one thing, the main thing congress didnt change after the crisis was issuers can still pay for the ratings. So that gives them leverage to decide who the pick and of course they have an insenttive to pick the best ratings because that wasnt fixed, the whole dynamic wasnt there. Were not seeing downgrades like we were in 2007 o so maybe its not as bad as it was back then, but there are investors who were worried that shopping dynamic where issuers shop around for the best, where if its left unchecked, it could be to that in the future. Whats the lesson for investors . Dont pay so much attention to those bond ratings not everyone has time to do their own research do you have time if you have a deal with does ps of loans, do you have time to look at every loan if theres an analyst whos done that research for you, that you can look at that and rely on do big investors still rely on the rayings to the same degree as they did or are they more skeptical more skepticism thats a main thing we found most funds have man tait daytons with direct or indirect ratings. Thank you very much excellent work i commend the story to anybody get it online if you dont get the print. Our next guest predicted the 2007 financial crisis in an infamous bet against the Housing Market and now he is sounding some alarm bells joining us now is steve eisman, senior Portfolio Manager steve, im really honored to speak with you today and im glad youre joining us particularly after the segment im sure you just heard about the story. I assume you u read it this morning. Do you rely on bond ratings at all . Never what do you do instead . My own research thats how you unu covered some of the internal weaknesses in the synthetic securities that brought the system basically to the brink of disaster. Is you went in, mortgage by mortgage, and look ed at what ws in there and saw that what was being rated as fillet was charity bly something far less than that. I think thats a fair statement. What your guest said that the business model, rating agencies is unchanged is 100 unaccurate. As long as the issuers pay the rating agencies, which is what they did precrisis and what they do post crisis, youll always run the risk of Credit Rating inflation. Lets forward to today securitized. The debt, one way or another, leverage also seems to lead to a problem. When the u. S. Corporate a dan r danger do i think its a danger to the system definitely not the only time theres a real danger is when banks are overlevered. Its about a third of what it once was i can say for the first time that ive analyzed it, i think the Financial System in the United States is safe. That isnt to say that the next recession people wont lose money. But its not a systemic crisis speaking of the next recession . When do you think it will be b many are points to signals saying hey, it may not be so far off from right now i have a strong opinion the only thing that i would say is the trade war then i think the potential black swan if there is a black swan right now is happening in hong kong right now. And that if things escalate even further in hong kong, that would have real impact for the global economy. But well see. You said previously when you were with cnbc in may that you were u confident we would be able to make a trade deal with china. Have you changed your tune on that do you think theres still a chance we can make a deal . I didnt say i was confident. I dont think i said i was confident. I said it was more likely than not. And so if there is no trade deal, what do you think happens with our market . Is that price d. Its not clear how much is priced in at point its going to be determined by how much the u. S. Economy slows as a result of that or not i dont think well know that for a few months everybody would love to know what youre doing right now with your investments and without opening your playbook totally, i know that one of your shorts lately has been a real estate data and brokerage zillow. It is down very heavily today so youre having a nice day i guess. Why is zillow one of your flag ship shorts right now . I would say zillow has one of the most flawed Business Models ive seen in a very, very long time they had a Good Business which was their internet real estate platform. The growth in that has slowed dramatically so now the growth is zero. In that business, theyre having real problems. They like to say theyre experimenting with new pricing, but what theyre doing is theyre trying to change the pricing of their entire business thats a problem the problem is i find the most problematic is what they call their i believe i home business, internet buying business where they go out and buy homes and flip them. I actually think the company doesnt understand the risk, the real risk of this business which are massive. And one of the ways you can see that is is last night on the conference call, the first word out of the ceos mouth when he talked about this business was the, how big the tam the totally Addressable Market of course the Real Estate Market in the United States is very, very large, but its a misapplication of the word tamme to apply it to the Real Estate Market theres really no tam in the way people think of the internet there are thousands of mini markets all over the United States theyre all local. Theyre all extremely different. They have incredibly different risks. For example, did you know that in dallas, theres a problem that many, many homes have cracked foundations. These type of different problems exist all over the country this is is a capital intense business i know only one thing for certain. Between now and five years from now assuming the company has some level of success, there will be massive problems theyll u uncover. Im sure there will be writedowns and impairments and im convince d the base doesnt have a clue about what this business is really all about thats very interest iing an strong argument indeed im sure well have them on and theyll address some of your points im sure. Let me turn back to the Macro Economy if i might if you, and i know youre not predicting in any sense the kind of financial crisis or melt that afflicted the large u. S. Banks, the banks around the world, but if you were to advise viewers on the one or two things that they ought to keep their eyes peeled for, you mentioned hong kong, as possibly being the smoke signal that deeper trouble is around the corner what would those be . Let me just focus on hong kong and i want to be very careful here because im not making any kind of predictions. But things in hong kong seem to be escalating. The people who were protesting are nbacking down the Chinese Government doesnt seem to be backing down. So if cooler heads dont prevail, its possible things in hong kong could get very ugly. And that is not going to be a positive in terms of negotiating a trade deal between the United States and china just not going to be b a positive at all for the global markets. And thats actually what im worried about the most right now because every weekend, weve got this drama where the people of hong kong go out and protest in the millions and its starting to get very violent. Thank you so much appreciate your time today steve eisman well power lunch will be back right after this. Rick santelli tracking the action as always at the cme. Good afternoon, rick everybodys pretty happy about the fact treasuries have available stai stabilized however, look at chart of 30year bonds. We had an auction, a little below average. Boy, the minute the auctions were over, weve gone from 232 down to 223. So weve given up nine basis points pretty darn quickly and if you look at a mid july chart, the swoons still exist so we want to continue to monitor. Its not unusual to rally after auctions, but many thought they would have more sustainability tyler, back to you thank you very much well lyft knocking it out of the park with its results last night. Uber reports after the bell and well hop on board the ride sharers next on power lunch. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Shares of uber and lyft are soaring today after lyfts strong results so will uber enjoy the same gliding ride as it reports profits or lack of profits after the bell today deidre bosa joins us now hey, tyler of the it certainly seems like investors are optimistic but they want to know that uber is on track to profitability, even more so after lyfts results which beat across the board its team said later this year they would actually give investors a breakeven date. Uber is far larger and more diversified. On one hand the company may have more levers to pull to stem the cash burn but it has fierce competitors in ridesharing abroad and food delivery and bigger and pricier moon shots. Its rate of growth is also much less than that of lyfts analysts are expecting 3. 4 billion in revenue, growth of 20 . Lyfts revenue this past quarter grew by more than 70 of the both are still losing massive amounts of money but ubers headline number is expected to be enormous. So 3. 4 billion in losses. Thats net income this quarter but that is largely due to costs associated with its ipo. So, tyler, investors may be willing to look beyond it, but for uber to break out of its postipo slump, its still trading below that ipo price, it may have to give more details on its profitability. Lets bring in dan morgan, a lyft and uber shareholder and Senior Vice President and Portfolio Manager. Lyft put up some betterthanexpected results in some cases we might give you some profitability guidelines Going Forward here what do you think about lyft when you look at that quarter . Do you have more confidence now than, say, when they first went public obviously it was a great quarter. The only thing as you know and you talked about that came at the end was that movement up on that lockout date to the 19th. That raised fears that maybe this was the best quarter and insiders know something that the street doesnt know. Really across the board it was a 72 jump in revenue so it was a very solid quarter for lyft. We have uber coming up here, reporting their results. What are your expectations there . 3. 4 billion in losses that is a very big number. Yeah, the big number ill focus on is gross bookings thats expected to be 15. 8 billion. Thats a 30 increase from a year ago also the take rate, which is about 20 . Thats how much money they actually take, that being uber, from a certain fare. So those are the numbers that im focusing on away from the straightup consensus earnings per share and revenues. Do you think when you look at uber, Something Like selfdriving, is that really something thats going to move the needle for them down the road i imagine theyll have to spend an awful lot of money to get that to a place where it makes sense to actually work who knows if thats profitable well, its fun to talk about, isnt it oh, selfdriving cars, thats great. We wont have to pay anyone to drive you around, well make millions they talk about that as a way to lower costs and get to profitability, right but it is farfetched if you think about it you have whamo with google and other manufacturers are doing the driverless cars. So it is kind of out there i dont know about you, courtney, but do you feel comfortable getting in a car when no one is driving, i dont know, in new york city no, i dont believe comfortable getting in a car when someone is driving in new york city. Were going to make you play would you rather if you had extra cash lying around and you have to buy lyft or uber shares, which one would you pick i think uber is a little more attractive because of their market share theyre about 65 of the market. Even though theyre growing less than lyft because they have a bigger base to work from, you would think they would get to profitability the quickest just because of their sheer size compared to lyft so uber would be a little bit more favorable just because theyre a dominant market share. Shares are up almost 8 for uber today dan and deidre, thank you both. Check, please is coming up next. It is coming up next. Di a gtlen sd,e what sheai laesndenem fun fact 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. 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With selects technology, its integrated into nikes mobile app and its website and will predict styles of sneakers and apparel, help with their Inventory Management so they dont order too much of something you dont like and they dont run into stock outs of things that customers are really demanding so this is sort of the fourth acquisition of these smaller tech players. Is it better for them or better for me as a consumer . Probably better for nike. Then again, it may be better for you if you really want a hot shoe nike cant produce enough of hopefully they can better anticipate that. Lets talk about steve eisman who broke open the egg of the last financial crisis. He doesnt believe that ratings agencies, bond rating agencies are any damn good. Number two, he is deeply short zillow really a hard heavy short of the and third, he thinks watch hong kong, it could be a real spot. Especially over these weekends thank you for watching power lunch. Closing bell right now. Welcome to the closing bell, everyone, im wilfred frost. Uber soaring today ahead of reporting its earnings after the close which is less than one hour away. The broader markets jumping up 1. 6 the nasdaq now higher for the week as a whole. Im sara eisen welcome, everyone. Lets look at what is driving this action higher treasury yields and oil both rising as key parts of the market stabilize china steps back the latest currency fix suggests deescalation of tensions. And new data her