We stand with the markets. Stocks have bit a bit under pressure but the yield now off the session lows were off the session lows on equities as well the yields are 1. 48 s p 500 is down just fractionally small caps are getting hit the worst there. You see the russell is down by just about a percentage point. Power lunch starts right now and despite growing recession risks, jpmorgan is taking on the bears. The firm saying today that the worst could be over and calling for the market to advance as the year ends. Start with the september surge but goldman, bank of america, and nomura across the market lets get over to bob pisani with more. Bulls versus bears, an old sory, but the bears are getting more vocal in the last couple days a sudden spate of bearish notes. First, Goldman Sachs said the trade war escalation is making them judge down their gdp growth forecast for the third quarter, fourth quarter, and First Quarter of 2020. Probably the most Important Note out there right now. Bank of america elsewhere noted corporate buybacks decelerated last week. Nomura noted hedge funds seem to be less keen on taking risks recently jpmorgan, as you heard, the lone bull in the last couple days its nearing time to add back risk and earnings are not contracting significantly true, and earnings contract notably only in recessions which they think is unlikely. They remind everyone if earnings are not falling, just flattish, which is what we have, every per isnt of the market falls, it becomes a percent cheaper. The volume this month has been much heavier on down days like friday than on up days like we saw yesterday. This suggests to me that trader are indeed more cautious buying dips but thats not a big surprise giving what we now call tweet risks and the fact the s p 500 is only 5 from its historic highs. Were not in terrible shape. The risk a little bit to the down side. Back to you. Thank you very much one recession sign all of wall street is watching is the dreaded inverted yield curve, and its getting worse the tenyear yield falling to its lowest level against the twoyear yield since 2010. Lets bring in jim and joe gentlemen, good to see you art, ill start off with you when the yield curve initially inverted, we said, you know, its happening for a split second, so it doesnt count. At what point do you start thinking, you know, its still around maybe it does signal something i think you ask that question very well on twitter today serious question, how long does this last before we start to take it seriously. Its the twos and tens were taking seriously, not the threemonth and tenyear which has been inverted for three months three months is exactly what people who have watching this for long time will tell you. Its certainly going to tell us things are slowing down. But not just because its lasted that long. Because it causes the slow down. Banks cant borrow short and lend long. Business slows down. So theres a causal relationship to the inverted yield curve over a period of time that will slow down economic activity, but i think what we have to look at is when was the last time we had an inverted yield curve where the interger was 5 5 they have been inverted where we have been 5. 4 versus 5. 2 we have a single digit interger we havent had an inverted yield curve when that was the case were trying to apply all the metrics we have used for past inverted yield curves to today which is a starkly different environment. Im not saying its not a warning sign im just saying its a warning sign in an environment that is different than any other inverted yield curve we have had. Jim, how do you factor in this potential risk factor signal, which you factor in consumer confidence, which is still high were in a global world and our rates are still relatively attractive compared to someone else, theyre still positive and i agree with art that that makes some noise i do feel concerns because art is speaking about a slowing company. Most especially whats happening with small caps. Hard to explain why in an environment where Interest Rates are going down, which mostly benefits small companies, theyre doing so poorly. Theyre not exposed to the trade battle as much, yet theyre 15 off their top. Thats a bad sign. Do you think theyre sniffing the recession . Thats my concern im seeing that. Im seeing the Global Markets clearly, they recovered after us and never really got to the heat we did, and theyre leading the way down so right now, the s p 500 and most importantly the Growth Companies in the s p 500 are , typically when you get an inversion, its still a year later that the market after the inversion. So again, that doesnt mean that the markets are going to go down im not necessarily sure it means that we are in a recession. I just dont like seeing the small caps doing so poorly its a bad sign. A great point that chronic underperform blsh im curious, at a time where people would say okay, this recession indicator, lets call it, makes me want to get defensive, but all the defensive parts of the market are the most expensive and crowded, what should people do well, interestingly enough, the dividend payers are at a bigger discount in valuation to the nondividend payers that may have been in 40 years. So some research from goldman that did the analysis. A lot of the dividend payers are actually valuation wise as counterintuitive as it would sound with low Interest Rates, you would think everyone would be crowding the dividend companies, but theyre not so its a very interesting scenario where people are actually defending themselves by owning apple and a lot of the names that you would not expect to be doing that well because theres a rush for anything thats growing so again, people have not yet moved from the yield curve and saying im going to start getting paid by my equities because theyre concerned about the stock market again, what i would suggest is make sure that your overall allocation is in line, that you can put up with some volatility, because its hard to imagine we had a 15 run on the s p still, even with this so far this year. So its been a good market just make sure that youre prepared for what could be a very messy next few months art, before we get into what you buy in this environment, i want to ask, you pointed out all the differences between this yield curve inversion and past ones so that stat where the markets do fine for the next 18 to 22 months, you want to throw that out the window as well i dont well, you know, its interesting in effect you were able to get a survey and get 2,000 responses today means everyone has an opinion about what the yield curve inversion means, and in an instantaneous information environment that were in, that either diminishes the point in time in which this becomes bad news or eliminates it completely that its bad news we all know this is happening. Joe brought up a good point. Growth versus value. Whats happening how could that be . I read goldmans report today, too. The multiples are lower, but theyre still way too high for a staples company. Look what happened to smuckers today. You say im going to go to the dividend safety of consumer staples, have a company like that blow up if you look at the places that are super cheap, financials, Energy Everybody is there, absolutely right theres absolutely no way you can talk somebody in a flat yield environment into financials even if theyre getting less regulation of the rollback and the same thing with energy, even though the commodity has gone up more than the equities, everyone has too much ptsd again those two spaces and cant touch it. The russell 2,000 looks interesting versus the s p 500 if youre concerned about the trade war, if youre concerning about a Global Economic slowdown, this is largely domestically focused index gentlemen, thank you. And to the bauntd markets now. The culprit in all of this action today Rick Santelli tracking the action at the cme. Rick its not the culprit. Its the aftermath the culprits are Central Banks every maturity but two years looks to potentially close at a new cycle low. And in the case of 30year bonds, alltime low. Lets go through it. Heres the twoyear note at current midaugust lowyield close is 1. 47 going back, as the chart goes to october 2017 you can see the little tang on the righthand side, that represents the low of the cycle. Look at five years going back to november 2016, 1. 41 was its own cycle low. Right now were at 1. 38. July 2016, for tens, 1. 53 currently were well below that, and finally, 30year bond, theres a 20year chart, 1. 97 is the current yield close. Were going to beat that no matter who you slice it, for whom the bells toll, we can definitely argue about all of the issues of trade, but at the end of the day, 16 trillion of negative rates, if theres a recession to come, i would think that that would be the antagonist melissa lee, back to you Rick Santelli, quick question for you. We were just discussing the inverted yield curve David Rosenberg tweeted out a fascinating stat this has happened three months and its a 100 correct predictor of a recession when that happens whats your take and whats your preferred inverted yield curve well, at this point, none of that okay David Rosenberg is one of the best there is, and he understands markets. But one thing i understand, i have been watching markets for 40 years and there is a unique circumstance here. Negative Interest Rates is the gorilla in the kitchen, and Central Banks are all too happy to point fingers in every direction as to whats causing a potential slowdown or recession. In my opinion, i guarantee theres going to be a recession some time in the next ten years. I dont think youre going to be enlightened by three months or two years to tens. Thank you, rick we have a news alert on alphabet lets go to deirdre bosa for the details. Melissa, there department of justice is bringing a criminal dierment against anthony levandowski. Hes the exgoogle engineer at the center of the past waymo uber selfdriving lawsuit. In a statement, uber said we cooperated with the government throughout their investigation, and well continue to do so. Comment from waymos spokesperson, of course, alphabet is the parent company, says we have always believes competition should be fueled by innovation and appreciate the work of the u. S. Attorneys office and the fbi on this case. At a press conference in san jose today, the special fbi agent in charge of this investigation says that they have been investigating this case since may of 2017, and to remind you, melissa, the waymo uber case was a huge deal in Silicon Valley and an important piece in the development of selfdriving vehicles. They settle ed in 2018 with ube paying 225 million of its own shares to waymo, but it cost uber time and money in its selfdriving car ambitions well continue to get more on this and bring it to you melissa, back to you thank you deirdre bosa and coming up, energy is the only sector, speaking of energy, in the negative for the year now a whole lot of oil could be coming on the market what will that do to oil prices and Energy Stocks . Well talk about it. First, papa johns shares are piping hot today as the Company Names a new ceo. Are they finally moving past the ugliness with the former ceo that story will deliver in 30 minutes or less. Papa johns naming a new ceo today. The stock moving higher but still down nearly 40 over the past three years is the Company Finally getting past the controversy surrounding its previous ceo and founder kate joins us with the story thats right. Rob lynch who is the former president of arbys is taking over as president of papa johns lynch led arbys through its own turnaround and is behind the famous we have the meats campaign i got a chance to speak to lynch. He said priority number one is to do a lot of listening and engage with ski stakeholders and franchisees as well as the Management Team to understand where they think the biggest opportunities and challenges are for this brand he also added that hes not spoken with John Schnatter but his focus will be on moving forward with the brand in this new royal. The company has been struggling for nearly two years after controversy surrounding schnatter, who is still its largest shareholder, and he stepped down as ceo in december of 2017. Jeff smith and star board invested 200 million in the company in february and appointed smith as chairman of the board. They also signed a new endorsement deal with Shaquille Oneal i heard from John Schnatter who said ron lynch has proven to be an effective Market Leader and while i still have many reservations about the actions of the board of director and their ability to fix this decision, the decision to terminate steve richie is a step in the right direction steve and john worked together for years. John had made those comment about the nfl leadership some thought were critical he talked about them during the kneeling controversy he stepped down the month after that steve took over in this role for about a year and a half. A lot of controversy several lawsuits now a settlement starboard is invested. Now rob lynch is the new ceo is it surprising or not surprising the new ceo has not talked to the largest shareholder yet . Im sure they will talk he said my focus is on the future of the business john has been selling. Thats important to note he owns about skaep of the company now. He had owned as much as a third. It will be interesting to see if he sells or buys now moving forward. Kate, thank you and do not miss papa johns board member and nba legend Shaquille Oneal right here on power lunch, thats tomorrow shaq in studio wow i mean, our necks are going to be im telling you aching like this trying to look at him. Papa johns isnt the only fast food stock heating up. Chipotle, starbucks, mcdonald, all on fire, outperforming the s p 500 and at or near their 52week highs. Can that trend continue. Joining us is matt defrisco from guggenheim securities. First of all, why the broadbased o outperformance low unemployment. So obviously the fast food consumer is seeing a bump in pay from minimum wage increases, and hes also out away from the refrigerator, so displacement from home is always good for fast food brands okay. Its clearly better for some than others. Want to ask you about dominos since we were just discussing papa johns. Why does that stock jump out to you . Well, papa johns, i think, is very similar to chipotle where theres a change of management so theres a hope right now. Dominos has always had that Management Team in place a very good deep bench they have had a change over of ceo two years ago, but the baton was passed very well, and theyre well ahead of their competitors whether its pizza hut or papa johns theyre within the direct pizza category, well ahead of them on the delivery side and they invested ahead of the curve on technology their samestore sales, the growth has been stable combination of samestore sales and Opening Stores matt, your top picks right now are mcdonalds, dominos, and chipotle, correct . Not chipotle. Why not chipotle, the valuation concerns me. Right now, you see next years earning estimates. I believe the street sitting at around 17. 50. That implies an insane multiple. The buy side, whos buying at these levels, is anticipating significant amount of up side in the earnings number. So for the consensus to rise i just struggle to see it going up much further than sort of where its sitting now at 17. 50 at a 25 earnings number, you would have to at least put on a 35 multiple on a p. E. Basis on this stock what art said in the last segment you did, thats a very expensive multiple at this late innings of the rally that were in matt, how important in the multiple is china growth and the potential of china growth to say a mcdonalds and starbucks and im wondering if there is anything that is concerning to you about what the Chinese Government could do to prevent or make it very difficult for mcdonalds to open those 400 stores in china by the end of 2019 or the 2100 additional stars for starbucks by 2022 . I think mcdonalds knows who their competitors are. They know the landscape, and obviously, the difference in numbers there, you see it. Mcdonalds i think is being a little more pragmatic about the growth expectations. Starbucks, on the other hand, seems to be leaning very aggressively into china. Theres obviously a very good local competitor, and theres more than just the local guys there. So besides luckin, there will be other competitors there. Cocacola with the purchase of costa coffee, that will not go away so the competition exists there. I think mcdonalds, though, probably has a little bit of a better history of identifying their competition on a global basis. Outside of competition, though, matt, which we knew two years ago theres a china trade war now, and im wondering if you think there could be anything that the Chinese Government does to make it difficult for these companies to open more stores yes, i think they could make a Company Ownership model. Starbucks is owning their stars. Mcdonalds is not owning their Chinese Stores theyre looking more and more toward the franchise model i think the difference there is unique, and i think it would probably hamper somebody who is a u. S. Company operator in there rather than maybe a partnership with a local franchise or a licensed agreement matt, thanks very much. Appreciate it. Matt talking those food stocks today. Thanks. Energy the worst performing s p 500 sector so far this year, down more than 10 in august so far. Is there any reason to be bullish on this group, and as recession fears grow and bond yields fall, investors are turning to gold. Should you go for the gold power lunch will be right back welcome back to power lunch. Im mike santoli at the New York Stock Exchange investors rushing into gold as stocks wipe out earlier gains. The safe haven climbing to fresh sixyear highs with the yield curve inverting deeper and setting off alarm bells. Lets bring in matt and chad advisers matt, undeniable that theres been this real bull surge in the gold price obviously, its sort of accelerated higher from here how does it look technically is this sustainable . Well, theres no question one of the things the 2019 will be known for is the end of the eightyear bear market in gold and beginning of a new bull market you see that if you look at the gld etf. It broke above its eightyear trend line going back to the 2011 highs and more recently, it broke above its sideways range it had been in the last couple years and both cases it did so in a very meaningful manner thats bullish on a longterm basis. However, on a shorter term basis, if you look at gld, its weekly rsi chart, its more overbought than at the 2011 highs. Go back to 2006 to see a time when it was more overbought. I think if youre somebody who bought gold when we turned bullish on it several months ago, sit tights. Youll have another chance to buy it at lower levels if you havent bought it, you can nibble a little up here, but i would wait for a pullback. We should see a better opportunity to be more aggressive on gold all right and in terms of from a longer Term Investment perspective, how do you view gold as maybe having a role in a portfolio . So were overweight gold in our global tactical portfolios we believe that a balanced portfolio should represent that 5 or 10 of ones portfolio we think that overall you can get a 5 to 7 kind of return in gold over the course of the next six, nine, or 12 months. With this escalation of trade concerns, as well as Global Growth concerns, in particular the europeans and look no further than the Banking Sector there, we would be layering in gold but overall, its a good stabilizer and a noncorrelated asset class in a retail account. So again, to sum it up, its a good hedge good protection asset in ones port foal kwloe. All right gold really took off once global yields went back toward and below zero well see if those two dynamics are linked Going Forward matt and chad, thanks a lot. For more trading nation, head to our website or follow us on twitter. Kelly, back over to you. Ahead on power lunch, Energy Stocks are getting crushed. Down 11 just this month but our next guest says there are still some ways you can play the sector plus, advertisings new landscape. Were going to sit down with an ad heavyweight to talk about how the industry is changing and on the tasting menu, one firm thinks roku would be the next netflix, or maybe it already is all this when power lunch returns. And now the latest from tradingnation. Tradingnation. Cnbc. Com and a word from our sponsor. A common mistake some investors make are searching for stocks with the highest dividend yield. This can be a dangerous strategy because it could mean the stock price has come down sharply or that the dividend itself is at risk of being cut. So before you reach for yield, be sure that the stock is also fundamentally sound. Im anjona payne and schwab is the better place for traders 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. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back, everyone im sue herera heres your cnbc news update at this hour. Israel has ordered fuel deliveries to the gaza strip cut in half. Posing a threat to the territorys electric power israel made the decision yesterday in response to an upsurge in rocket attacks from gaza the white house says First Lady Melania Trump has not had any secret meetings with north Korean Leader kim jongun. The response came after President Trump had said, quote, the first lady has gotten to know kim and likely agrees hes a man with a country that has tremendous potential, end quote. Toy maker mattel is adding two new barbies inspired by courageous women, rosa parks and sally ride they come with authentic clothing and accessories and each cost about 30. And one town in spain is getting ready for its annual food fight tomorrow. It includes 145 tons of overripe tomatoes yum. That festival is said to have originated from a spontaneous fight between villagers in 1945. And it has grown by epic proportions. That is the news update this hour melissa, back to you sounds like a slipping haz d hazard totally and laundry hazard definitely. Need a lot of shout on that one. Sue herera taking a check on the markets right now. Were off the session lows, but were still in the red here across the board the dow is down 116 points s p 500 down by 11 and the nasdaq is down by 38 points, or just about a half a percent. Were watching the twos tens spread as yields get crushed lit hitting the lowest level since 2007 the oil markets closing for the day. Lets get out to dom chu at the commodity desk melissa, oil prices have been all over the board today along with the rest of the stock market, but they have been generally positive you have u. S. Benchmark west texas intermediate crude up by almost 2. 5 . 54. 89 world benchmark brent crude up about 1. 3 earlier today, prices were higher, and poised to snap a multiday losing streak on softening trade rhetoric, then they lost steam as Interest Rates fall alongside gold and silver prices rising as some traders seek the perceived safety of the safe haven assets. In the last hour, hour and a half or so, theres been a more positive move toward the highs of the sessions with some of the oil market pointing to comments from the Russian Energy minister saying the country is committed to the agreed upon production cuts along with opec some also point to speculation working its way around the market with what is going to happen with tonights Inventory Data from the American Petroleum institute as well as the Energy Department data in the morning that has crude surging to the highs of the day in the last hour Energy Stocks are still having a rough month the sector is down 11 , and its the only negative s p sector this month is there yet more pain to come joining us is mike kelly, analyst at Global Securities its been such a rough year for energy plays no matter where you look, everything just seems to be getting carried out. Is there anywhere to hide anything thats been working in this sector . Yeah, kelly thanks for having me on. Its like depressing that every time we start a segment, you have an intro just like that, it seems like it has been rough, but i tell you what im up here. Its our annual Energy Conference in chicago right now. We have 17 of these companies here, and there is some excitement because we had big news yesterday we had pdce merge with src energy, and the market actually lovedit. Pdc was up 16 synergy was up, or src was up 10 on it, and it was a zero premium deal so this is the template Going Forward. The market has been calling for consolidation, and i think this kind of gives boards now a little bit of ammo to say maybe we should consider some of these zero premium deals a zero premium deal, and that was the market reaction. Were at that level now pumped about that deal so now, i mean, that is basically saying to investors, you want to play this space on acquisitions who in particular do you think could be in play here . Well, really, the high quality guys you really want to stick to names in this space, especially the timing right now, that are low break even players and guys that have very good Free Cash Flow outlooks. So names that come to mind to me, one thats a little off the beaten path, but northern oil and gas. This is a name that could actually produce over the next three years enough Free Cash Flow to cover 60 or 60 to 70 of its market cap. Huge Free Cash Flow outlook. Great properties another one, wpx energy. Some of the best properties in both the permian and the balkan, just had a brakeout quarter. Thats one we love, and then calen petroleum, a name thats gotten beat down over the last month or two, and now trading as one of the cheapest permian names out there. It has some of the best properties certainly above average returns. Is there a larger sort of structural concern about this sector, mike, in terms of Portfolio Managers being interested in a sector which is the smallest part of the s p 500 . As it becomes a smaller and smaller part of ones portfolio, if youre a benchmark to the s p 500, you spend less and less time perhaps on energy, and it just sort of is like a selffulfilling prophecy here. Im wonder how this cycle gets broken if you have seen this cycle before, and how you get people interested again. Yeah, so i think what youre seeing right now, the concerns that were hearing, is u. S. Production growth. U. S. Production growth keeps going up and to the right. So far, we have been bailed out by opec, but Equity Investors are saying how long is that actually going to happen for so we have to see some semblance of control and production getting tamped down here in the u. S. Before Equity Investors are comfortable enough with the commodity to move back in. I think were in process right now, consolidation would certainly help, but that i think is whats really in the back of all these Equity Investors minds. Absolutely. Thank you for your time. Appreciate it. Thank you mike kelly with seaport one of the main issues affecting the markets today, concerns about the economy is a recession imminent or is everything fine . Our Morgan Brennan speaking to the ceo of honeywell, what does he see in his businesses morgan joins us with that. Hey, morgan. Hey, melissa. Cautiously optimistic, thats how i would sum up honeywells ceo and chairman when i asked him about the health of the Global Economy yes, we have seen a little bit of a slowdown, but nothing dramatic overall, our markets are performing fairly well particularly in the u. S. Has been very strong but even overseas were seeing i dont see this major recession coming so im not i guess im not pessimistic about 2020 the environment is slightly worse than it was last year. Emphasis on the word slightly since last year was so strong. That said, he is watching with, quote, keen interest, not only gements around the u. S. china trade war, but brexit, also the strange relations between japan and south korea right now. Honeywell operates in a number of markets including Aerospace Oil and gas, logistics so really key commentator from a major global manufacturer. He said theres a game plan in place with the worst Case Scenarios mind, but overall, hes positive, but perhaps not quite as much as earlier in the year, but guys, we have a lot more coming up from my exclusive interview on the closing bell as well in that, well be talking about everything from china and trade and how honeywell is thinking about that and also this big bet that the company is making into industrial software. Melissa. Morgan, thank you Morgan Brennan coming up on the tasting menu, an analyst says watch roku gronk latest play, and ghosting isants just for dating apparently anymore first, seema mody is riding the rails as amtrak plans a big upgrade. Hey, seema hey, melissa. It may seem like im inside a highspeed train in italy jetting from rome to naples on the last week of august. Well, i wish that was the case im actually in delaware getting us a preview of the new acela coming into service in about two year years time. Ill give you a look at what to expect and whether the big bet made by amtrak will pay off. Thats next on power lunch. Welcome back heres a taste of some of the other stories were watching for you today. According to a William Blair analyst, roku is growing faster than netflix did at a similar stage in the companys life. They expect had to reach 80 million active accounts. Alongside isusers, it projects a 4. 5 billion for the streaming platform, and the stock has been on ar as it has surged over 370 this year thats insane compared to netflix, for instance which is up 8 wow is that all for netflix now . Year to date retired super bowl champion Rob Gronkowski is making headlines as he announces a new line of cbd products he said they played a key role in his recovery. When asked if he would come back to nfl, he said this if i had the desire to play football again, if i feel passionate about football again, if im feeling like i need to be out there on the field, i will go back to football. An emotional gronkowski today also said those football injuries he sustained throughout his career made him lose the joy in life. A common theme we heard that from andrew luck after his sudden retirement this week gronk, melissa, said after the aquad injury in the first half of the super bowl game, he left five minutes that evening. Couldnt leap more than 20 minutes at a time for four months afterwards. The part of the story that interests me is that active players cant use cbd. Its totally bans for the nfl . For many other sports as well the latest trend for job seekers is ghosting employers. According to a survey, 83 of companies that were recruiting said they had been ghosted by candidates the reason for the high number of noshows, over half decided the job wasnt frigright for thm its a bull market thats all you need to know. It means people are rude and have no consideration. I mean, this is a generation who texts, and they just send emails no personal interaction, so they dont feel bad that, oh, i ghosted kelly because all i have ever had was an email interaction with you or a text interaction with you you should feel bad, people. Thats what peggy noonan wrote about. Bring back the manners i still think its the sign of a bull market. Anyway, amtrak is spending 2. 5 billion to update its northeast corridor line, including high speed rails that can travel up to 160 Miles Per Hour seema moda is in delaware, where the trains are being made. Seema. Hi, kelly manufactured in upstate new york, were here in new castle, delaware, at the awesome facility where were getting a preview of the new acela train that comes to market in 2021 what i can tell you is its big. It can accommodate over 30 more passengers and 20 more efficient thanks to lightweight technology and a new brake system some things to note, were here in first class some of the new features include updated wifi, usb ports, a personal outlet, and one thing i like is this reading light outfitted in every seat. Overall, amtrak is spending over 2 billion its sourcing the help of french manufacturer to build 28 highspeed trains. The catch is they want them built here, in new york, among other facilities and theyre spending over 2. 4 billion on this project. But ceo Richard Anderson of amtrak and other executives say while they are getting these new highspeed trains to market, changes and updates need to be made to the Rail Infrastructure to insure that these trains can run smoothly amtraks ceo Richard Anderson has urged trump and the administration to unlock more federal funding to update the railroads across different states across the east coast, but President Trump so far is saying is that the responsibility of the states to unlock more of their budget to fund those updates in the meantime, guys, theres really no timeline for the u. S. Infrastructure bill, and experts say lawmakers need to find a solution soon to insure customers remain safe and that these trains operate smoothly. Back to you. All right, seema, thank you seema mody in delaware the landmark shift in the Advertising Industry has taken hold digital ad spending will surpass traditional spending for the first time this year up next, well talk to a coans e alg man about how mpieardeinwith this change st fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Welcome back digital dollars are destined trends digital spending projected to grow 19 in 2019 and traditional spending expected to drop to a 45 share. We have got an advertising heavyweight with us today to dig boo the changing landscape richard is ceo of nsd swat in this environment, you are known for some of these iconic ad campaigns like the snapple lady can this survive tv is still important it always will be. Take a look at the super bowl. I think the world has completely changed. And so digital is far more important i think except for moments like the oscars or super bowl truthfully. How does thinking about an ad campaign change . Well trying to have a Digital Strategy everything changed. It is an unbelievable question but its a very complicated one. So with digital you get Something Different today. You get real geo targeting you get this incredible speed to market and you get a twoway conversation with a consumer it is completely different. Thats where you put clients and customers . Trying to start up, get the bang for the buck what does that look like today ill give you an example. Put your money where your mouth is i have a book called rouge. I have a boutique agency, created my own ads and put them on facebook. Basically created video ads on facebook . Yes for 25,000 i reached 1. 5 Million People i think thats pretty god. Versus how much for a tv commercial look at the super bowl. 5. 1 to 5. 3 million for an ad in 2019 of course, reaches 90 Million People but the production dollars are very high. First the doritos commercial that dropped yesterday in the vma awards whats weird i think im an older generation compared to the demographic for this particular ad, it didnt have any you didnt know what it was advertising. Thats the whole thing today. Doritos is always been on the cutting edge for a new consumer. Thats fine. I would say that, again, its the change in landscape, talking to the consumer, Millennials Want to hear today and see i would say that we have to open our minds to a new dialogue but i still believe in branding and the product name and really people understanding what if i spend the money come out of your shop. I dont want to say truthfully for myself an my clients, i am 100 about branded. Thats really important. One last thing on this. People asked me about this all the social media followers, phantom accounts and fake and buy for yes. When you get the impressions of doing a facebook account to promote your book, for example, a facebook post, i mean, how do you know theyre legitimate . How do you know what the roi is . You have to know where you go good reads really attracts lets say a heavy demographic of women and it is specific site for people who really care about books. So where am i advertising over labor day . On good reads. And they have some banner ads . And gifs. How did you write a fiction book with a movie deal its Wendy Finerman who called you halfway through the book. Yes. A producer that brought everybody forrest gump. Devil wears prada. This is someone you want to produce your movie. Clearly im so privileged. She is the number one book to movie producer in my career i handled revlon, avon, cream of nature. And so, i could not written this and have really come up with the idea of rouge if it wasnt for handling those did you witness any murders in your real life . I dont want to give anything away but as i understand it certainly theres sex and murder and things. One of the two all right richard, thank you so much for joining us his book is called rouge. Id say good luck but you dont need it oi im just happy to be here so nice. Thank you. Thank you. We have a news alert on Purdue Pharma. Lets get over to dom chui. Theyre the makers of oxycontin and alleged to have caused and prolonged a lot of the crisis in many parts of the country. Right now nbc news has learned kritding sources familiar that Purdue Pharma and owners the Sackler Family offering to settle more than 2,000 lawsuits against the company for a range of between 10 billion to 12 billion. It was, again, at least ten states attorneys generals and plaintiffs attorneys gathered in ohio where according to the sources familiar the family talked about a possibility of this we have reached out to the Sackler Family for comments and purdue nbc news got a statement from Purdue Pharma saying while theyre prepared to defend itself vigorously, the company sees little good coming from years of wasteful litigation an appeals. The people and communities affected by the crisis need help now. Purdue believes a constructive global resolution. A big deal this is in light of Johnson Johnson now on the hook for 572 million with their Oklahoma State crisis so this is an interesting development. More developments as we hear more. Purdue early to stlete in oklahoma, as well. Thank you. Well, thank you for watching. Thats all we got. That does it for power lunch and closing bell starts right now. Welcome to the closing bell. Im Morgan Brennan that stock is down Philip Morris after it confirmed merger talks with giant altria. Altria started the day higher but dragged down into the red like the rest of the market. Dows down 41 points and moving back towards the flat line are we going to hold here . We have 59 minutes to find out. Im mike santoli in for wilfred frost. Morgan, look at whens driving the action yields slip and stocks follow as the yield curve inversion deepen