Transcripts For CNBC Power Lunch 20160603

Today. Down by 1. 5 . Well dig into that over the next two hours. We begin with the banks. Dan warner is a banking analyst at morning star. Great to have with you us. Dan . I dont understand why one would be invested in banks right now unless you simply wanted to preserve or lose capital. Give me the bull case. The bull case is that if you with the strong economy, with the low cost and positive thats we, have were still seeing strong loan growth. I think i mean there are headwinds. But for longer term, i think you still want to be in banks. The fed will raise rates at some point. It always seems like the last few meetings when he some excuse or some reason at the last minute why they havent raise the rates whether its geopolitical or a jobs report. They will raise rates. I dont i dont think its going to be quite maybe you may see one before the lection. I think that lection may have smim pact on the timing of the rate increases. I would look for it more december or thereafter. So i think, you know, given the relative valuations, especially on a citigroup which is trading at 70 of tangible book, i think you want to think about that name. Problem i have, not a problem, but i mean, the bears will point out that if you take a look at a name like a citi, for instance, its down. The dividend yield is 4. 7 . The dividend yield is 3 mark. In the notes with the producer, you are saying take a look at the reits. Does that mean you do not like financials . Melissa, we like financials. I think you almost have to if youre going to be an investor that is broadly diversified. They september a little over 16 of the s p 500. You have to have exposure. We happen to be long citigroup because it is so cheaply valued. But we have a neutral weight on financials and within financials, we have no asset managers. We have no investment banks. And importantly, reits for the benefit of a low and slow growth in rate environment which we think will be perpetuated by the numbers we got on the jobs report today which is indicative of a lack of hiring. Its not turning into layoffs just yet, fwhbut this lack of hiring doesnt mean we dont have the inner shah to warrant the foed raise Interest Rates. Dan, i go back you to. You spoke about the better economy when you led off the show. My question is what better economy do you see . The isms i see are disaster. At best the economy is struggling here. Then i would also point out that two tens are at the lowest level since december of 2007. That doesnt sound like a great environment for banks to me. You still have positive gdp growth as opposed to our neighbors like canada which is seeing negative. You still see the consumer is spending. But theyre trying to also maintain their better balance sheet. You know, the wage growth i was somewhat pleased by, you know, up. 4 . I think there is still some room to go here before we see it. But a lot of points, you have a forehand on unemployment. And with wage growth, you wonder if were at a peak here. All right. Going to leave it there. Thank you. Over at morning star. Just quickly, i want to you sound except caskeptical of the. We have a news alert. Im here. I have an oil patch alefrmert. Its baker hughes and we have the second time this year in 2016 that weve actually not lost rigs. We added rigs for the second time this year. Total rigs on the oil side of things, up nine to 325 rigs. Total rigs are up four. The one we care about is the Oil Rig Count with it plus nine at 325. Well also note here that on the oil rig side of things, were down 317 from the same time last year. So this time around it looks like were adding again. This is the second straight week where we have not lost rigs on the count. Back to you. So were increasing the second time. Increasing rig counts. They came in and spoke. That marked the bottom of the market. Rig counts didnt go up for the first time in a long time. You wonder if that meeting yesterday with this rig count number, will that bode to be the top of the market . I say yes. I think yes. The obx is telling me Something Different. I would submit we saw the highs in oil earlier this week. I think were going lower from here. Look who joined us. Im here. Josh brown. Jetson meeting the flintstones. Whats your take here on oil . I think guy makes a good point. This was the big fear all along. We were going have this oil recovery. Everyone was going to come back and try to sneak back on to the market. This is now week two. I think that is a risk for oil. But what will help oil, i think, is the fact that the dollar is now falling back off again. So you kind vf a little bit of a push and pull. It may be premature to say well see a three handle. But mid four shouldnt shock anyone. Lets move on to gold here. Rallying on that weaker than expected jobs number. Eric, where do you see gold heading right now. It is all about the dollar . Yeah, certainly we saw during the month of may in anticipation some of rate hikes, gold dropped down from 1300 to almost 1200. A lot of people getting short. That pushed the gold back up to 1245. Its not such a big squeeze. Certainly we can see the market back up to 1300 again. I ask you a quick question. You say its about the dollar. I dont think its about the dollar. My sense is that gold move has been more a play against fiat currency. 10 trillion now of sovereign bonds have negative yields. I dont know what percentage that s but the number itself is ridiculously high. When japan went negative that, was a green light to buy gold. Do people talk about that . Surnt tcertainly that gives e value. So whenever we do see currency destruction, whether its the Australian Dollar or the japanese yen, you certainly should have some part of your portfolio in gold. All right. Eric, thanks. Gold miners are doing really well. Yes. Thats what they exist for. You would certainly expect to see a much bigger move in the miners than the metal. However, still longer term in a down trend on both. Frankly, im shocked that gold is not acting better given what guy is talking about, given the dollar falling off. I dont know how happy can you be with a bill len fit you got. You think you have every condition for a huge gold rally that is better than 2 . Josh makes a great point. I thought gold could be up 35 to 50 on everything we saw today w that said, im convinced that youre going to walk in one day, gold will be up 50. Everybody will say to fade it. Next day, the same thing will happen. Its as strong as its been in my lifetime. There is Something Different going on. Gdx absolutely in a down trend. The miners is the place to be since december. I think you stay with them. Simon, over to you. Thats the number of cost created in may falling well short of the 162,000 estimate, less than a quarter. So what now . Here are our all star jobs panel. It feels like a very big day, ron. Is this something that is more fundamental . It is more fundamental. We have seen deceleration this morning. Also in the downward revisions in the prior two months employment numbers. Manufacturing he is infectively near or in recession in the United States and certainly around the world. The risk there is morris tokt down side in the economy than upside, i think. Bill . Sure. And along with the deceleration and the payroll numbers that ron mentioned, weve seen three months of decline and participation after it had been edging up. That suggests that people are leaving the labor force. Where does that leave us on Interest Rates . Youre still driving down the Unemployment Rate to 4. 7 . That is very close to full employment for a lot of people. Its down to what we may call full employment territory. But the Participation Rates are still almost historic aloes. If you compare going back to previous recoveries or expansions, you know, similar Unemployment Rates, we have much higher Participation Rates. So to get to your question, bottom line on policy, june rate increase of 25 basis points. Thats off the table. July, i think the odds go down a bit. Too. There i start to get concerned that were moving too close to the lection cycle. See, ron, there was a time when we thought that Interest Rates were coming off the table and other central bank wobz forced to do more to stimulate asset markets, that the stock market would rise. We havent had that today. No, we havent. Thats because dlz theres beens lingering thought. I dont think they have the latitude given the weakness in the global economy. As you get closer to the election, if the fed were to trigger some sort of market down turn with a september rate hike, that does affect politics as much as it affects economics. I think the fed given 23 countries around the world had negative rates. They carried negative rates. It gets harder for the fed to pull away. If you follow that to the logical conclusion vein a november election, you may not raise rates until december again, a full year. Will they get a rate rise this year . Ill fall back on what the governors have been saying. Theyre data gendependent. Right. You know, theyre data dependent. The data have not supported a rate hike. The core pce inflation rating is still below 2 . You know, Wage Inflation is not that big. Its 2. 5 year over year. Its not the type of thing that triggered rate hikes in the past. We have to leave it. There im sorry. So bad news bad news once again . Once upon a time, guys, a bad jobs number meant that the fed wasnt going to raise that meant free money forever and great money for the stock market. Here we are today. Thats what we v what is your interpretation . I think the street likes the status quo. I think the street was ready for 25 basis point rate hike. But theyre also ready to not have a rate hike. Just two weeks ago. I think it was 50 50 amongst traders. I dont know that today is like this is bad news so its terrible. Its like all right, its bad news so well talk about rate hikes for 30 days. Thats okay. Look at the reaction in stocks. Pretty muted. I think that is more of the same is okay. Pretty muted on the top line. Yeah. But when you take a look, there is a real risk aversion. Josh pointed out that were talking tens of thousands of jobs in a workforce of 150 or so Million People. But these are the numbers that they look at so we need to look at this. Is the fed data dependent . If they are, unemployment went down 4. 7 . That is a headline nup number. Thats what theyre watching. So given all the banter we heard frefr fed official over the last couple months, they need to do something. Now if they dont do something, the credibility issue that they have that i feel they have is only going to get worse. To answer your question, is bad news bad news . I think the box that they painted themselves in gets smaller and smaller. One thing, the wage increases stuck. People are like this is horri e horrible. Will is a silver lining. The wage increases stuck. This is the thing that the fed has had the hardest time getting to happen. Its not rip roaring. Its not anything in the 90s would look at and get excited. But its better than no wage increases. As long as that sticks, i do believe can you be more constructive than deinstructive when you think about what is going on economicly. Ten year yields are ten basis points. 1 lower on the day. The best performing sector today, no surprise. The utilities. They set an all time record intraday high. Breaking the prior record. That was set about a month or so ago. This Interest Rate sensitive index is up 16 this year as the fed signaled a rate tike some time this summer, maybe. But given all the talk that you were just making in terms of rate hikes and what the jabs dada jobs data means, utilities will be there for investors if they get tabled for a little longer. Thank you. I mention ris 5 00 version, thats what im talking about. The move in the bond market in, utilities, wean the pe for the sector more than 22 people still want to buy these. Doesnt matter, right . Its hunt for yield. Now xlu, all time high today as dom pointed out. Im not trying to compare. Go back to 2007 when xlu was on this huge run. Recall what happened in the months that followed. Im not suggesting thats what were in for. This isnt bullish for the broader market. When xlu leads us higher, there is something wrong. Bond yields remain stubbornly low despite what everybody else seems to want to happen. I think is the dumb money to speak very candidly. The kind of investor that has the mindset that utilities are historically defensive. I know i need equity exposure. Im going to buy something defensive. Youre paying up all time high and epic valuations. By the way, same people doing this with Consumer Staples which is starting to look like a head and shoulders top. Sari to till. I do not think this is well educated money. I think this is throwing money at low etfs and the type of vehicles that purport to give you equity structure. Youre not going to like this bond flavor. All right. These guys are sticking around. Meantime, some call it the super bowl for pharma and biotech. It is the biggest Cancer Research conference of the year. It kicks off today. What will drive stocks and move medicine forward this year . Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. The top financial regulator in new york state has sent out warning letters to some 28 peer to Peer Lending Companies to ask for information on their Business Practices and whether they may require a license in new york state. This, of course, follows a controversy and multiple investigations into the San Francisco based lending club which the department of Financial Services subpoenaed last month. The Justice Department reportedly also looking into them. This is an extension of that inquiry, guys. Aims to get more information about other companies in this line of work and whether or not they may be running into legal issues as well. Yep. And the stock falling as you speak, kate. Thank you very much. In the meantime, the biggest Cancer Research conference of the year kicks off today in chicago. So what will drive stocks and move treatments forward over the weekend . Our pharma reporter is here to break down what we can expect before she leaves for the conference. Thats right. Leaving in 45 minutes. So this is the big show. A lot of the biggest cancer drug makers presenting data over the weekend and early next week. This has really turned into a big pharma meeting where you see Companies Like bristolmyers and merk competing in immune yoe therapy. You also have roesch in there. Those are the Big Pharma Companies that we should be watching over the weekend. Of course, it is often the smaller names that move more into next week. So we actually asked a Data Analysis tool what previous people have told us about the most positive movers out of asco. They returned five name, Seattle Genetics, ionis pharma and finally halozyme of the companies, Seattle Genetics is a good one to watch. We will have the ceo joining us on power lunch on monday as well. We look forward to that. Stick here. Lets bring in our biotech analyst. He is joining the conference today. He joins us today from chicago. Meg gave a good rundown of what to watch. Which ones are of interest in your coverage universe . Great to be here. Following on megs comments, not only ariad which has big data and kite. Kite is one weve been talking about for a while. Its been a great run for biotech investors over the past three weeks. Biotech up is 12 or something like. That outpacing the s p 500. When the jobs number hit this morning as disconnected as they may seem, it created a risk in the environment. Are you concerned about biotechs the rest of the year given the change in tone that seemed to happen today . Thats great. So look, i think in the short term, weve had a nice move in the Biotech Sector like you said, 12 . The ibb seems to be locked in the channel. It bounced off 250 support levels a couple time. Moved up to 290. And i think thats been healthy. Weve had support levels and i think that we can move higher. The keycy think were looking for a better political backdrop. Were looking for the steady beat of m a. It has been a big theme over the last couple of weeks. And were looking for important political dat yachlt as the political backdrop clears up, people have more confidence to buy the stocks which are still down year to date. Mike, its meg. Just curious to know your picks on m a. We have seen med sahratian bandied about. What other names may get taken out in the near term . I think that ariad which is one weve been talking about here and you mentioned, you should ask the ceo there. Theyre definitely viewed to be a Strategic Company that would make a big fit in blood cancers. Obviously sort of, you know, later this year were thinking about biomarin. Youre hoping the political backdrop would get better. By that im assuming the political noise about price rises and what we do about that in the future. Smell out what would you hope to happen in the runup to november . What are you saying here . Thats great. So, look, i think that couple things are going to be watching for, number one, obviously political debates. You know for the general election are going to be coming up over the next couple months. People are concerned about what the candidates are going to say. Obviously, theyre going to be talking, you know, big ideas that could be scary. But i think that people are looking for things that are not dramatically game changing, things that we are not new and shocking. I think if theyre lower in the aagenda yashgs you know, i think there are a lot more important things going on in the world. Theyre low on the agenda. There is nothing shockingly new. I think that people will come to realize that early on. It was scary. And the reality is some of these things are not so bad. Michael, thank you for joining us. Some may argue the tone has changed. They were out with a note saying biogen is able to raise pricing on three of the multiple sclerosis drugs. So heres whats interesting. If you assume its hillary and trump, every other sector there is always going to be a political debate about, especially as we get close to a president ial election. But each side has a proponent. So if its guns or if its finance, the farm suit Cam Companies are the only ones that are getting numbers from both sides. That makes them a tough noeld a year like. This however, its one of the few sectors where you can find Earnings Growth and management that is willing to put forward a ton of cash to shareholders. I argue its pharma and biotech and technology. That it is purchase it. I think can you find other stores that make the political headline risk worth while. Its not a buying opportunity base ond how you think the house and senate votes will go. Potentially if you see them hit, you think any moves would ultimately be stalled . Clearly. Thats like wow. Clearly. If you actually follow either candidate, you know nothing is going to happen. Hillary had to make sure she couldnt get outflanked by sanders or Elizabeth Warren or someone like. That i think this is the furthest thing from Donald Trumps mind. But if you can get through between now and the lection, to your point, sure this is worth while headline risk. That is a financial term out there. We call it suris. I will say this. We have pointed thut it 285 will be resistance. Look where it traded yesterday. Mentioned kite pharmaceutical. It is really interesting. The stock sold off significantly since the fall. 17 short interest. If you want a flyer along a line of a celetor, i encourage you to see what happened, there take a look at kite. That is what you give me. See, thats why i isnt that i can share some gummy bears . We have gummy bears here. Can i share some . Its a tradition on the power lunch set. Were 1. 5 from historic highs. Thats where weve been for quite a while. What will it take to get stocks to new highs . Power lunch is back in. Two singing you wouldnt haul a load without checking your clearance. So why would you invest without checking brokercheck . Check your broker with brokercheck. Final gold trades are crossing the session. Of course, a lot of this is being driven by the safe haven trade, moving to the socalled safe havens of the market like gold and bonds and the big move that were seeing in the dollar index. Taking a check on the rest of the metals complex, we have big moves across the board. Silver is higher by 2 and copper. Palladium is up by 3 right now. Now lets got a check on the bond market with rick santelli. Quickly, before we get to the charts, lets go through what is going on with the yield curve for the week. Two year, down a dozen basis points on the day. Down 14 on the week. The winner, the five year, down 13 on the day. Down seven on the week. Tens, down ten on the day, down 15 on the week. 30s down seven on the day, down 14 on the week. Big drops in yield. That sts finance part of the curve. That is the most real rates say many end users and also had the biggest move, obviously. Lets go to the 513 chart on tens. May of last month, the 13th. Thats where twos, fives and tens are comped to. Can you see the big chart. 30s are dropping back to april. If we look at the year to date, there is big. 1. 66 the low yield of the year. Were getting close boons took it out. All time low yield close at seven basis points. Last one, a one week of the dollar chart. It shows how today changed everything for the dollar index. Its all about Central Banks unfortunately. Back to you. Rick, quickly, give me an update on the 210 spread. Its not making new lows. It traded the lows yesterday. Briefly testing 90. Its only a basis point or two higher than. That virtual lit flattest since november of 2007. All right. Rick, thank you. Lets get to a special edition of power run down. We have our fast money trader with us. This is what we do on fast money. Every night at 5 00. Top trades. All right. Here we go. First top trade. Tlt. It tracks the long term Treasury Bonds with maturities of ten years or more we saw flight to safety here. Theyre up. What do you do . Stay with the trade. Ive been steadfast in few things ive been steadfast in this. Interest rates in this country are going lower. Nobody wants to believe it. Everybody says the economy is doing so well. You heard that for last two years. The economy is not nearly as strong as people want to believe. Rates are going down. The yield the curve, the 210s are 90. That is going to flatten out still, folks. I think they trade down 1. 25 . I said that for a long you know that. I know that. Youre playing to the audience here on the 1 00 to 3 00 show, you know at 5 00 i say ut ail the time, rates are going down. Next trade here. Market vectors gold. Barrett gold, newmont. Doing really well today. Again, outforemaning commodity. Makes sense. Lever to the price of gold. Outperforming on a lousy tape much makes sense. I said at the top of the show. Gold is not about a dollar trade. To me, its a play on currency thats manifest in itself when the japanese went to their negative Interest Rate poll sichlt i said brichlt ill say it again. 10 trillion of negatively yielding sovereign bonds globally is not a bullish thing. It lends itself to gold. I think gold goes higher from here. I think the miners outperform. You would rather i love this game. Tune in. Well do this later. But gold or the miners . The miners. I mean, somewhat counterintuitive. Theyre so levers to the price. I think you stay to the miners. Amborella, shares jumping 5 . Revenue matching forecast here. Of course, the read through is go pro which is also higher on the back of this guy. I love for go pro to take off. Right or wrong . I mean we have nick woodman on all the time. You wear a go pro around your house. Go pros are amazing. Im amazing. But with that said, now all the analysts are tripping themselves to upgrade. I sort of get it. Go back to november and see where the stock was trading. Look where it is trading now. Look at the short interest. The inclination is to fade this move to the upside. I think the inclination is wrong. I think you stay with this one over the next couple weeks. All right. Simon, over to you. Thank you very much. Stocks are off their session lows. The dow fell as much as 148 points earlier. Investors sold stocks and rushed into bonds following that weaker than expected jobs report. Oil is also down as youll have seen. So will the jobs number now move broadly hurt equities . They most reemently saw an uptick in inflows. It was in the last week but it was there. Our guests join us to discuss. Ira, this is actually given the scale of the conversation that people are having. This is quite a small move that youve got in the equity market. Why do you think that . The stock market was particularly strong over the week captured in this data set n the prior seven weeks, there were outflows. So wouldnt make too much out of this dat yachlt i think the incoming data had been quite strong until today. They gave investors more confidence. If you think about what the market has done since 2009, we had a huge move. There were positive flows into equities. So the stock market is able to move. Flows havent mattered. John, people will have just heard guy say the economy is much weaker than people expect. What do Equity Investors think of that if that is true . Certainly todays job report would play right into what guy is saying. They need to be vetted a little bit more so. In the six months ending in march, the winter and spring and spring, the economy created 230,000 jobs per month. Thats way above average and way too high. Something to do with warmer weather. The last couple months that slowed down. I think job growth is slowing. Not as much was in todays report. Im going to ask you both the same question for 30 seconds. Over the weekend, what should people think about doing with their portfolio. Take a step back and think about what drives stocks. Over the long term, valuation and earnings. Today you have to understand that were only trading at a slight premium to the slight market multiple. That is in a very low Interest Rate environment. If you look at the housing data and until today, everything suggested and proving trends. So were bullish on corporate earnings and valuations are reasonable. So were still constructive on equities. John . I would echo the comments. Id add if can you get inside of Janet Yellens head and figure out what shes going to say on monday that, will be very helpful. Thats true. Send us a note. Thank you. Have a great weekend. And go to our website to see a Small Cap Stock that ira is bullish on right now. Okay. Lets get to sue herrera for a news update. Simon, heres whats happening at this pour. Rebels in the indian controlled portion of cashmere ambushed a convoy of soldiers in a busy market killing three and jirg three more. The rebels are fighting for the independence from india. A suburban Chicago Police pension board revoked the 79,000 a year pension of former Police Officer drew peterson. That decision comes a day after peterson was convicted in a murder for hire case in southern illinois. He was also convicted of killing his third wife. Heavy rain causing severe flooding in parts of western pennsylvania. One of the hardest hit areas is in West Moreland County where crews used rafts to rescue people stranded inside their home. So far, no deaths or injuries have been reported. And matt damon giving the commencement speech at m. I. T. He played a mathematically gifted custodian at that school in the 1997 movie good will hunting toek spo more than 2800 graduates. He told them it was an honor to be part of their special day even though it was an honor that he says he didnt earn. En that is the cnbc news update this hour. Back to you to you guy. Thank you very much. So its taken 14 days to detect a signal from one of the black boxes of egyptair 804. The crash that went into the mediterranean sea. Would Live Streaming technology have made a difference . We speak with the ceo of one company who says, yes. And the former ceo of a Major Airline who says maybe. But the airlines wont buy it. We got another one. I have an orcogram for an owen. Thats me. You should hire stacy drew. P. This morning stloe job growth creation. Where does that leave us . The president and ceo of the National Urban league joins us and the former mayor of new orlea orleans. Also with us, ron christy. He is a former special assistant to president george w. Bush. What do you make of 38,000 on the jobs growth figure here . This shocked a lot of people today. Does it help donald trump . Well, good afternoon, silon. I think its shocking on many levels. 38,000 jobs is not getting it done. Were not moving forward with the speed of Economic Growth that we need in this country to come out of this recession that i think that were in. If you also look at the 59,000 jobs that were revised downward for march and april, it shows that economy is not doing as well as it could. Why . Because in my view government is too much in peoples business and should allow business the ability to innovate rather than restricted by restrictive policies that this government put in place. I dont like the numbers no document but the question is whether these numbers reflect a longer term trend. Yes, there needs to be more Economic Growth. Yes, there needs to be, i think, more effort to stimulate the economy. Stimulate Business Investment and consumer demand. I think there should ab decisional fiscal stimulus. While we had a good run of jobs, it certainly needs to continue. The bigger question i think is what does it mean for the fed . I hope the fed will see this and will not raise Interest Rates. Ron, just to come back to the major point that you make there. Do you importantly see the Unemployment Rate falling to 4. 7 . Thats a very low level by historic standards, isnt it . By historic standards, yes. But if you look at that 4. 7 , what does that really reflect it . Reflects that are tl are 95 Million People out of the workforce. The labor workforce Participation Rate is the worst its been in nearly 40 years. So i think that 4. 7 is misleading. I do agree with my good friend here that we need to ensure that those folks at the Federal Reserve bank who are watching this this that she should not raise short term are tr rates. You are sure that Hillary Clinton has enough new ideas on the table for job creation . Clearly donald trump has a lot of innovative measures. Well, Donald Trumps plan is a plan that would turn the deficit into the size of a planet jupiter much thats what his plan s. But he is saying something new. The danger, im assuming, is that clinton could be seen the question is not whether its new or old. The question is whether its real and infective. I mean, the truth is this campaign will certainly, i think, be waged around who has the better economic plan . Not the best talking points, not the best critique, but who has the best economic plan . One that can increase wage growth which we need to do, increase overall Economic Growth and make sure the main streets of america dont get left behind. This really i mean for you, this really cuts to the core of it, doesnt it . This is about the rust belt states and whether you can turn some of the dems to donald trump. Thats great. You look at what this former secretary of state said, of course, wanting to eliminate coal jobs in West Virginia and pennsylvania. I think a lot of people are looking at her record and saying do we really want a third term in the Obama Administration . Does she promise much more of the same we had the last eight years or does Donald Trumps vision put things into sharp focus and say lets try Something Different. Lets go in a different direction. The last eight years have not been very good for job growth in america. We thank you. Theyve been good for job growth. The president s Approval Rating is above 50. So that means that there are a majority of americans today who may think that a continuation of many of the president s policies are good for the country. We have to leave it. There thank you both. Good to see you both. Thank you. Up next, go all in or time to fold . Were rolling the dice on casino stocks. Plus, must see video of a young boy and his Close Encounter with a lion. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Check this out. A kids close encount we are a lion. At this zoo, hick thick glass keeps the people from the animals. This is the craziest thing i have ever seen. Who is taking that video . It is the kids parents . They clearly shows no fear whatsoever. Still. Youre a wise guy, right . A foul ball and everybody flinches. The Natural Inclination is to flinch. The guy taking the film didnt flinch. There is something going on. The child turned away and didnt see it coming. Tv. Todays job report stoking fears of a u. S. Slowdown and only 38,000 jobs last month. Ib vestors looking beyond america, one other major focus this year and end of last is china. And, of course, the slowdown happening notably in mecal. Lets get to susan lee with more. Its been two years and no immediate recovery in sight according ing ting to morgu ii. It doesnt look like it will be coming back in a big way any time soon. The results show that shorter and fewer stays are being taken by chinese gamblers. Theyre also currency risks being tied to a weakening currency. Now on the flip side and on the other side, u. S. Casinos might be the place to be with surprisingly stable growth. Penn, boyd, and mgm are the names to buy state side. Back to you. So is it too risky to buy stocks . Adam, ill start with you. They started a morgue y eed mor report. What are they mising . So there are many things that are dangerous and could potentially throw the recovery off track. But as of now, mass gaming is growing on a he is quenl basis. I think as the new properties open, wynn palace and Las Vegas Sands at the end of the summer, youll start to see demand shore up. Whether you say mass gaming, youre talking about the nonvip. So fewer people, fewer visits and higher spend . Exactly. And on the mass side, you have a higher margin business versus the vip. Where the junket keeps a portion of the profit. Is that pos ipossible, harry . Before it was all about the vip. I think theres a bigger question which is there enough demand there to support the opening of 10 billion worth of new casinos opening now between the First Quarter. And the evidence hasnt been great n the last year weve seen two major casino openings. They resulted in no visitation growth. No growth in casino revenues. And while i believe that there will be incremental growth in visitation and revenues when wynn and they open, our view it is wont be enough and its going to lead to Competitive Pressures and margin erosion. I hate to make you choose sides. Im in the bull camp. The stock im in the bull cam weapon is wynn. Steve wynn is betting on himself. Look at how resill yenlt it is. I know simon is about to jump down my throat. But as long as he keeps betting on himself, im betting with steve win. There are many people who dont believe that there is information coming out of mccow to judge what is going on with the government control. If that makes you nervous, remind us what the purer plays are on vegas and other possible stable parts wlaf is happening in this country. The purest play is mgm. Which has 10 exposure to mccow. But 80 of the cash flow comes from las vegas and in las vegas you have five, six, p 7 pricing growth which is likely to generate twotime the growth for mgm over the next 18 months. All right. Were going to leave it there. Thank you. Up next, why investors are loving space stocks. Thats when power lunch returns. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Before the break, we told that you theyre going to sell some icy beers in space. Cell towers and crown castle, theyre trading off the highest level since going public in 1998. As for beer, molsoncoors hitting the high level. And space, were not talk about the final frontier. Were talk about extra space storage. Trading at the highest level since the 2004 high. A bunch of utilities here. A whole smaterring, guy. Very interesting. Let me ask you a question. Fire away. This extra space, you have a lot of junk. Seriously. You need a place to store your junk. And thats making an all time high. So follow me here. Is that correct . Yes. So what does that tell you about society . Tells me that we have way too much stuff. If those stocks are makingi an all time high, as a society, were too glutenous. Too much stuff, folks, get rid of it. When the stocks start going down that, means the economy that means people are finally getting fiscally responsible. Im not even losing my mind here. Its true. Maybe thats because consumers are not spending on weather and other junk to replace the junk they just threw out from the extra space they rented. There are people eating a ham sandwich and hes like he made a lot of sense about that extra space thing. Its not a big valuation. Something is going on there. I would continue to look at that name. Something is going on there. Look at the way the stock is trading. Loudy tape. Great stock performance. And nobody eats ham sandwiches anymore. Anyway, speaking of ham sandwiches. Nobody eats them. Speaking of them. All time highs to new lows in the workplace, just wait until you hear how many people say they had their lunch stolen at work. It happened to me. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. 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. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Welcome to power lunch. Look who joined us, the judge. Thanks for having me. Am i reading that . Yechlt it says scott. Diz monthly jobs report. Stocks off the lows. Take a look at the major averages to day. Still in the red across the board. We have moved off the worst levels of the session. There is the dow down just by 44 points. S p 500 off nearly 8. The nasdaq is also the worst today down. 6 . Financials, the weakest sector right now. Rights now we have the feds first reaction to the weak employment data. And Steve Liesman here is with the details. Scott, we broke it during you show. We have sound from the fed governor who gave a dovish response to a very weak number this morning. Lets show what you they said. She says, wait. Prunlt rdent Risk Management suggests that risks create greater confidence in a rebound in domestic activity and greater certainty regarding the brexit vote seem more ahead of the developments. Zbh thats an old equation that he used to talk b take the least risky route here. Im gathering different ideas. Our crack economics staff gathering ideas for why this number was so bad. J. P. Morgan suggesting that job growth could be lagging the gdp. We had very weak First Quarter numbers now. The job numbers catch up with that. There was some weather issues that are out there strong in march. Weaker in april. Maybe that continues. The verizon strike, we know that took 35,000, 40,000 off. The other thing i want to talk about is a data outlier. I want to go to the next screen. This is the eighth biggest miss. I looked at all misses when the street miss business more than 100,000. What happens is the next month it tends to come back. Outside of recessions, thats important, i dont know if were in a recession here, when we miss like this out side of recession, we come back the next month with an average of up 186,000. I want to show you how we were all like Ellen Degeneres with no memory. Okay . Absolutely no memory. March 2015, we hit we did 84,000 on the payroll number. That miss bid 122,000. More than the miss today. Came back the next month with a 251. Okay . And the data outside of recessions is full of that. It happens. We get. This im not saying its an outlier. There is evidence and i assume its weaker. One thing mark zandy pointed out, only 74 of the sample responded in this payroll number. So that something to think about. Its a low compared to will 80 . Its a july rate rise or not at all this year probably then. You get the rebound and you go up. They could come back in december. Im not sure that raising in december ahead of the christmas selling season is the brightest move. They did it last year, it was okay. But in this context, they need to see july come back june come back in july. They need to seat numbers revised up. They need to seat gdp numbers keep going strong. Thats for janet yell non fi janet yellen. The fed reported that the House Science Committee launched an investigation into that bank of bangladesh hacking incident at the new york fed. That is expanding the chairman lamar smith of the House Science Committee sending this letter to janet yellen at the fed here in washington, d. C. , requesting documents relating to cybersecurity incidents at the fed, particularly concerning to the Science Committee they say is a report in reuters earlier this week that at least 50 breeches of Information Technology systems from 2011 to 2015 at the fed of those they say four hacking incidents in 2012 alone were considered acts of espionage. The House Science Committee wants to get to the bottom of that. They want to produce all reports created by the nirt and local cybersecurity teams. Theyre asking for a detailed description of all confirmed cybersecurity incidents and theyre also asking for all documents and communications referring or related to higher impact cases handled by nirt or local cybersecurity teams. So an extensive document request here of the fed here in washington to in a letter sent to janet yellen today. All right. Thank you very much. Lets get back to the markets here. Where do we go from here . Lets check the technicals out. Bring in chad gordon for his take on what the charts say. What you are looking at . A nice clean uptrend here. Were going to go back down to 20910 lows. You can see that uptrend is well established. And what im focusing on is the two major corrections that weve seen over the last couple years. We saw a nice 300 point drop in the s p 500. And then through the volatility in 2015 and 16, another 340 point drop. So were quite symetrical. I follow a model that is the fourth wave of a fifth wave pattern. I believe we should have one more pushup into next year around 2 of2600. 2600 and what . Is that sterling . Is that skepticism . No that, is 500 points. Over the next year to year and a half. I mean were not going to be up there by next quarter. But we have some we have the fed behind uz. Look, we had bonds staying big. Gold is staying big. The dollar is selling off. This this an outlier or not . If this is the start of a big slowdown that, is not going to propel the stock market higher, really. What really changed, were down. 5 with 38,000 jobs added this month. Nothing has changed. Now its looking good. Without the participation of financials. Well, i financials have been underforemaning. Theyre the worst performing sector, i believe at least one year and possibly two years. Its been one of the better performing sectors. Thats why they managed to march higher. Again, if you look at the nine major sector sxl, the financials have them and theyve been worst performing. All wife done here is that. This is what everyone is concerned about. Im a simple kind of guy. I try not to overthink things. All the volatility, thats all you got . I mean, thats not we havent even seen volatility yet. All right. So financials, okay. We really need to start seeing some real selling. We got it on the record, tot. 2600. Thank you. Sod gor todd gordon. Financials are the weakest performing sector here. It is now a buy opportunity for them or are there better places to invest in this race sensitive market . Joining us now, john manly, chief equity strategist and cio of shore best. What is your take here on financials . I like them. Im probably the wrong guy to ask. I like what theyve been doing for a while. I think eventually rates will go up. The fed wont be tightening and chasing the economy higher. I would probably be overweighted. How do you process this conversation that is happening right now . A rate rise may be off for june or july . The market is looking ahead. Will it go up next week . I dont think financials are necessarily foremaning next week. But theyre not badly valued. And theyre still a very good story in there. I think things will get better at some point in time. What is your take . Well, i think simon is really a continuation of several false starts weve seen for the financials. I think when you look and see Companies Like citi trading at 70 of book, youre looking at j. P. Morgan with a nice dividend yield tshgsz a very compelling theme to be investing in financials right now if he expect the Interest Rates to rise. But then you get back to back weeks jobs numbers and see today they get crushed. So if youre going to go into financials, you dont buy a broad based etf. You have to look at the companies with great leadership like jamie diamond and a dividend yield like 3 . Pick them selectively. But as a group overall, i dont think you go in, you know, head first right now. John, its guy. How do you wrap your head around this i get banks that are well capitalized in the histories of the balance sheets. I get. That i get valuation is extraordinarily compelling. What i cant wrap my head around is twos and tens are the last levels we snau december 2007. The environment is very difficult for the banks to make money. So what is the reason to be such a ardent bull in the space . I think things will get better. I think its all a question of where we go from here. Is it as good as we ever thought . Im still in the industry. I think that it will get better. I think the worlds economy will strength as the worlds economy strengthens, its good to be financials. I dont think the fed is going to slam on the breaks. So a better economy without a fed tightening is good for the economy. Im a patient man. I think what were asking is whether the stocks which appear to be good values are value traps . Theyve been value traps. But not terrible. They havent done that well. It doesnt been disastrous either. Again, i tend to give myself a lot of leeway when i look at these things. I cant be precise in predicting the future. I see the value and why the story can get better. I see the issues with regulation which will be a problem for some time. I think at the end of the day or maybe the endst year or, so i think we have a better economy and they benefit from it. There was a front page story on and the banks, are you able to put that to one side . What im saying, simon, when you look at the financials right now, theres a lot more headwinds than tail winds right now. So when youre investing and its a very hard sector to get overly optimistic about, but when its 19 of the s p 500, youre going to have to put some money there if youre allocated to domestic equities. Thats going to hurt some banks. When you look at well capitalized banks like j. P. Morgan, even jamie die monld talked about another head wind which is the coming crisis in the auto leases and auto loans that are out there that are going to go bad. So you have to really look at what you own. Like i said, i dont see atz a sector you go head first into. Well leave it. There thank you both. Thank you. Okay. Its taken 14 days to detect a signal if one of the black boxes onboard egyptair will 804. The crash into the mediterranean sea. Would Live Streaming technology have made a difference . Well speak with the ceo of one company who says yes. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Ato speed up your Car Insurance search. R ways heres the latest. fast sound effects problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Welcome back. Check out these incredible pictures of flooding in paris. Theyre seeing levels they havent seen in 35 years. And tourists are being turned away as staff scramble to protect priceless pieces of art from the rising waters. And its not just france. Heavy rains across europe left ten people dead. Most of them in germany. Id be heart broke finance i was in paris right now. Yeah. All right. Time now for street talk. We kick it off with big lots. Oppenheimer initiating coverage on big lots and outperform. This beats a full year raise quarter. It also had samestore sales growth. The best performance in four years. They added refrigerated and frozen goods and deemphasized the closeout partst business. This is a winner of the stock this year. Up by 37 . Its right on the verge of breaking out to the upside as well. It needs to close above 54. Thats been resistance. Its a meticulous valuation. If you have the gull to be in this a stock like this, you need to wait it out. Thats like a 5 00 inside joke. I get it. Next up, weatherford international. Piper jaffray upgrading that stock from overweight to neutral. The firm believes the recent 1. 1 billion senior note offering improves the resilience of weatherford. They raised the price target to 8 from 7. 50. I like this call. I think the stock traded well off that you just mentioned. Ill say this, youve seen stocks like this move to the upside in way thats dont make sense. So i actually applaud this analyst for doing. This i dont know if it gets to will 8. I think there is another 10 to 15 on the upside of this name. Final street talk stock, broadcom. Lots of call out for the better than expected quarter. Raymond james among the calls raising the price target to 180 from 160. The upside in the quarter driven by better than expected revenues and the upside to the guide from better apple revenue. The analyst points out that broad xcom is diversified. You think of broadcom, you automatically think apple and you think of cell phones. But thats not the case. Have and have notes in the space. Clearly, can you pull up a chart of ten different names and you see who swining and losing. Broadcom is winning. I like this call late. Better late than never. I think it goes higher. There is a lot going on. There. You pay attention. Now all of a sudden you pay attention. You were out there eating lunch. Ham sandwich. Chips have been working lately, right . Some of them have, absolutely. I saw you on the halftime report. You talk about the chips softened with that crew. I watch. I watch everything. Keeps you busy. Appreciate that. All right. Up next, will Live Streaming technology replace the black box on airplanes . Well speak with one ceo who is hoping. So hell join us next. Thanks man. Imagine if the things you bought every day earned you miles to get to the places you really want to go. With the united mileageplus explorer card, youll get a free checked bag, 2 united club passes. Priority boarding. And 30,000 bonus miles. Everything you need for an unforgettable vacation. The united mileageplus explorer card. Imagine where it will take you. The transportation index is off the worst we are formance. It was on track for the worst day in more than three weeks. Avis budget weighing the most, down by 3 . Airlines also lagging. Check out american, united, delta, southwest, all down by around that 2 to 3 mark in this mid afternoon trade. Back over to you. Thank you, dom chu. Its been 15 days since will 804 crashed into the mediterranean sea. Its taken 14 days to detect a signal from one of the aircrafts black boxes. The wreckage has yet to be discovered. The cause of the crash remains unknown. Would live stream being technology have made a difference . The own other of the company that makes the technology. Tom, why dont you walk us through how exactly this Technology Works and how much it costs. Certainly. So flight is an Aerospace Company based in calgary, can d. A. We make several products that access real time Aircraft Data and make products that allow our customers to take that real time Aircraft Data and save money in the operations. How does that work . How does it work exactly . Do you use wi fi or how do you actually trans mitt the information on a minute to minute basis . Yep. So our equipment includes modems for the Satellite Communications network. Thats a low earth orbit satellites. Were a seller for that consolation. So we can connect anywhere in the world between the aircraft and our ground base server uptime. That allows the customers to access the information on the aircraft in real time. So our products provide then the ability to look at real time events on other aircraft, look at health, trends we can log into other systems and see what is going on. It sounds attractive. Youd be able to monitor an airline and detect trouble before it actually results in some sort of fatal crash. But how much does this system cost . If it doesnt cost that much money, i would imagine airlines would be all over it. It is quite affordable. The base unit that we sell is around 50,000 take plus or minus given the particular deal. When you add in the cables and the installation time and labor, it comes in at less than 100,000. This then is allows us to all of the real time access that we require. To provide products that actually over the time that theyre used by the airliner will pay the customer back because of the operational efficiencies that theyll gain by saving fuel, by understanding exactly where the aircraft are, all of those elements. Give us an Airline Perspective here. How would the industry think about this . Well, obviously technology plays in an ever increasing role in safety. And this is an advance if can you have real time streaming. The problem is the cost benefit analysis. Much of what is occurring today has a satellite based acar system. Much of the data, although not the data this gentleman provides is available down stream. But that doesnt really increase the safety of the aircraft. Very little can be done to help an airplane recover from some catastrophic event by talking from the ground. So theyve done a cost benefit unless. It hasnt cleared the threshold of a very significant Capital Investment and operating cost. What do you say to that, tom . I think right now its been 15 days since the egyptair flight went down. We can stream black box data, the essential parameters every 20 seconds from the aircraft. So there was about seven or so acar message thats were received from that aircraft. I dont know the exact number. Im not privy it to. But that indicated that there was time to get aircraft information off that aircraft before it was terminated. But i think what tom but that that nfction would have been useful. How would you explain that. I would say in the case of 447, for example, there was a two year time difference between when the aircraft went down and when it was found. And when it was found, the black boxes were recovered. We were lucky to be able to recover the data from those boxes. That showed there was a procedural problems. It was a big two year lag that flight went down and the time we found the boxes. That incident could have occurred again. If we had the information real time from the aircraft, then we could have been working and understanding the solution far in advance of when it was actually done. You have sold anything . Have you sold one of these devices . Absolutely. We have 50 customers worldwide. 50 . Yes. 50. Yes. We provide a great deal of Real Time Data that provides customers the opportunity to save money in their operations. Were expanding rapidly. Would we have flown on any of the customers airlines . Its possible. Such as . Well, in canada, there is first air that is flying our solution and is providing the real time streaming. There is airlines in portions of the third world. Were waiting for the first Large Customer in north america and europe. We continue to work on. That i think our tech snolg compelling. I think as we continue to get the story out, there people will do as gordon said the cost benefit analysis and realize there are better ways to do things than the way weve done them in the past. Do you think is an instance where this should be regulated or left to the private sector . The regulators will make this judgement. If this had a material positive change in aircraft safety, they would mandate it. This is an Information System and how quickly you get the information. The egyptair crash or two years ago the air france crash both were able to recover and identify what the problem was. None of which would have precluded the descent. So the regulators tend to go on the safety side. Its nice and of course the families want to know and the information is important. But its not that critical to have it that same real live time. Sure. Its just not. All right. Gentlemen, thank you. The market is getting ready to close right now. Well have the final trades. Plus, Florida Governor rick scott sending an angry letter to the white house. Ggins had. A tree that bore the most rare and magical fruit. Which provided for their every financial need. And then, in one blinding blink of an eye, their tree had given its last. But with their Raymond James financial advisor, they had prepared for even the unthinkable. And they danced. See what a Raymond James advisor can do for you. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Hi, everybody. More of course yab authorities arresting six people with alleged links to isis. A preliminary report said they were part of a terrorist cell that had close relations with isis fighters who are trying to establish the group in that country. More than 100 bodies were pulled from the sea off libyas coast after a smugglers boat carrying mainly african migrants sank in the mediterranean sea. The death toll is expected to rise. 200,000 people from israel and abroad attending the annual lesbian, guy, bisexual event in tel aviv. Tel aviv emerged as one of the worlds most gay Friendly Travel destinations. And former fifa president s lawyer says the compensation payments he received were proper and fair. Its in response to fifas accusation that he and two former officials were involved in a coordinated attempt to enrich themselves to the tune of 80 million in salary and bonuses over a fiveyear period. Thats the cnbc news update at this hour. Simon, back to you. 18 million between three over five years. Not bad. A busy week for crude and the opec meeting and the discussion about. That the big news is the employment report and the weakening in the dollar generally, 48. 71 is where we close out. The gold miners are surging. Todd, what you are seeing in the charts . I like the gold miners. I actually came in long today and added to the position. Gold is reflecting the feds complaisancy here, the requirement to be complaisant going into this summer months. I dont see a fed rate hike. That should put a top in the dollar. Help put gold higher to option traders, the gold miners are showing the highest volatility in the major industry groups. There i took the opportunity to sell some put spreads on the down side. Gold should quiet down and continue to move higher. All right. So key to that analysis, todd, correct me if im wrong, the dollar will be capped. Correct, yes. Boris, do you agree it has to be capped . No. It doesnt have to be capped. Even if the dollar does rise, even if the fed raises rates a little bit, i think its going to create turbulence in the equity market. The risk aversion is going to help gold. When you look at gold miners, look at them essentially as options on the underlying which is the gold itself. The moesst levered companies ar the best bets. If they can hold that 1200 support and begin to rally and most importantly, if they can break the 1300 to the upside, its a screaming buy for the gold miners. There is quite a lot of potential here even if the fed actually raises rates. The only way that ties in, boris, is if the stock market does sell off sharply and we run into both the dollar angle for safety. That is the one way that that happens. Thats my argument, yes. Boris, scott, youre in the Foreign Exchange hall of fame, without question. Ill say this, strengthening yen force jazz pan to do something. God only knows what theyre capable of doing to weaken the currency again. My thesis has been gold is a play against fiat currencies. Can you speak to the Foreign Exchange market . And why maybe for first time in decades gold wins . Ill give you one better. The chinese juan continues to get weaker and weaker. Where saul the chinese money going to . There is a lot of retail buying of gold as well. Yes, there is a move away from fiat currencies, not just in japan. But also in china. I think that puts a bit under gold. As i said, gold right now this 1200 is critical f we can hold it, its going to be a screaming buy Going Forward into the summer. I can throw one out there . Last word. Anybody seen a move in bit coin . This thing is extremely i mean i understand it is chinese demand. But all of a sudden, theyre going through 550. Were breaking out of here. That is not a coincidence. Guys, thank you. Head to our website for more information. All right, florida grofrn rick scott firing off a heated letter to the Obama Administration asking for federal assistance to combat the spread of the zika virus. Joining us is governor rick scott. Welcome. Nice to see you today. Thanks for coming on power lunch. Nice to see you. Congress goes on vacation. Zika is not going on vacation. And were not down here. Were going to do everything we can. But the federal government needs to show up. The Obama Administration, i assume a very detailed letter of what we need. They need to be a good partner. I want to ask you more about that in a moment. I do first, though, want to ask you about a trip that youre soon going making up to the area in which we are presiding that, is new york city. Youre going to meet with donald trump on monday. Do you think youre being vetted for Vice President . I dont have an interesting in being Vice President. I have an interest in donald trump being president. I need a partner in the white house that is going to add jobs to this country. President obama is not been a good partner for job growth. I need a partner in the white house. Im going to work to make sure that donald trump wins florida and win nationally. Why are you meeting him on monday . What is the substance of the conversation going to be . Were going to talk about my race in 2010 and 2014, how i won and how question help him make sure he wins florida. Were going to were a great melting pot. We have people here care about jobs. Thats how i won. Hes got the right message. His message is job creation, defend the country, build up the military. All those resonate in our state. And thats what were going to talk about is how does he win in florida. Florida is always important, of course. Maybe this go around more so than ever. According to the Washington Post which came out with an interesting map which maybe well show on the screen here, if states that have gone democratic in the last six elections do yet again plus florida this time, thats a victory for mrs. Clinton. Look, i think the race is going to be about donald trump a business person that knows how to create jobs. Hillary clinton doesnt know how to create jobs. She didnt defeat ice is. Build up the military. Secure our border. She wants to build up the military. I think its a clear choice. So im going to do whatever i can to make sure he wins florida. Thats what this meeting is about on monday. Yeah. Can i ask you, are you comfortable with the tone and the tenor of the Trump Campaign . There were apparently a couple more incidents today at an event where two journalists were removed. There have been incidents in the last many days regarding journalists. Are you comfortable with the tone and tenor that he is bringing forth to this campaign . In my race, i wanted everybody to be safe and secure. I want people to come to my events. Everybody runs their race a different way. Again, its a clear choice. Donald trump the business person, the outsider, thats what i was in 2010. Thats how i won. I won because people were ready for something new. They were frustrated with government. Thats what donald trump is bringing to the table. Somebody that is going to build jobs. I hear you. But are you comfortable with the tone and tenor of the campaign . Thats the question. Well, i mean, everybody does their campaigns differently. I know what i did in mine. I want everybody to be safe. I want them to come to my events. Ive not been to one of his rallies. I couldnt speak to how the rallies are run. I mean youve made sort of your support of and his support of the Second Amendment swuven the pill yarz of the reason in which you support him. Im just curious as to how you feel about the first amendment. Look, i believe in all the amendments. First amendment is important. The Second Amendment is important. I believe in all the rights of our individual citizens. This race, this race is going to be about job creation. We need have a change in the direction of this country so we get more jobs. I need a partner in the white house thats going to focus on job creation. Thats what im going to get with donald trump. Let me focus to the zika virus which, of course, you mentioned at the outset. Did you write that letter to the president on june 1st when you wrote in part the fact that congress has not taken immediate action to protect our nation from zika before Hurricane Season began. And we have entered the heart of summer heat, heavy rainfall and growing mosquito population is dispibting. Florida needs action from the federal government now. You said sort of how congress punted at least in the near term on this issue. How concerned should folks be . Particularly those who may be in areas that are traveling to florida or have plans to do so this summer . Heres what people feel comfortable about coming to florida for. We had 30 million tourists the First Quarter. They know florida knows how to deal with disasters. Weve done it with hurricanes. Were doing it fwhou the risk of zika. Were going to do our part. Our department health, Emergency Management teams, were going to do our part. Fwhut is a national issue. And the federal government needs to show up. Theyre going to show up either before or after this happens. I also ask the federal government to tell me exactly how were going to work with the fema when we have the cases where its, you know, mosquito born in our state or in our country. What is the process so to work with fema . The federal government needs to do their part. Were doing ours. Governor, well talk you to soon. Thank you so much for your time today. Have a good day. You likewise. Florida governor rick scott. How many of you have had your lunch stolen at work . Its more kman thcommon than yo. Melissa lee has been a victim of it. Really . Yes, i have. And we have the startling numbers besides melissa lees lunch to back it up. New bikes arent selling guys. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Welcome back. Nice coming back. Who stole melissas lunch . Who stole the lunch . All right. Go ahead. Take it away. Im good. A new survey of 1,000 full Time Office Workers finds that 71 of them have had their lunch stole african a shared work refrigerator. But interestingly, only about a third actually admitted to taking something that wasnt theirs. Theives and liers. Colleagues. Melissa, as we said, has been a thief i mean a victim. A victim. Is that what you really think . Sorry. So the story is i remember when you tweeted about. This. I left a clementine orange on my desk. Im sitting here. I would hear someone yell, mel, someone is eating your clementine. I could see that person peeling it open. I wont name name. You know who it s max myers. Wow. I have to tell you something, honestly from my desk. Now i put my grapefruit. Youve been there. Nobody touches my grapefruit at work. You know that. If they do, they know there is ramifications. You need to let people know the ramifications. I see you have written your name on the side. That was day two, yes, label everything. Label. Then can you see. You see black ink on their hands. But once the peel is off. You actually labelled your orange . It worked. Of course it worked. Measures i have to resort to. Anyway, tile for todays power pitch. One pren muir has just 60 seconds to convince a panel of experts that his startup has what it takes to be the next big thing. Hi. Im stew liddy of zip drug, the first and leading on demand Prescription Drug delivery business. We hand deliver patients medications from the preferred pharmacy within minutes of the time its ready for pickup oftentimes for less cost than when the patient goes to the pharmacy on their own. We started this business because medication is a huge problem in the United States. 125,000 people die prematurely every year for not taking medication prescribed probably by the doctor. Cost and inconvenience are two drivers and we can solve that with zip drug. It is easy for a patient to use zip drug. All they have to do is download the app or visit a kiosk that sits at the Doctors Office or at the urgent care setting. Three simple steps later, a mess enker who is employed by the Company Brings them the medication. And in november of 2015, we closed the seed round backed by the best Early Stage Health Care and technology investors. Since we closed that, theyve been doubling in size. Welcome to todays power pitch. Im melissa leechlt you saw stus pitch. Now meet the panel. Joining us is a board member of the new york angels. She invests in over 40 startups. They mentors over 30 startups sean a Founding Partner of nexgen and from seattle. He is a personally investor in Tech Startups in the u. S. Alesh yoo. There is some advantage. Ill stiff you a b though. So there some other startups that are attacking. How you are standing out from what theyre doing . Were the only ones in new york that does this. This is the biggest market in the country. We partnered with city m. D. New yorks most urgent care. They give the patient the ability to go up and put their phone number and start prot ses. So when you leave the clinic, you go home and go back to work. You receive your medications. Kelly . Im going to give you a b minus. I wanted to hear just a little bit more about your overhead costs. So how do you expand to a national kpp and keep those costs from eating into your profit sflz. Our costs and economics are better than that of a typical brick Mortar Retail pharmacy. If you look at cvs and walgreens, youre talking 10,000 Retail Locations in this country. Each location is 10,000 to 20,000 square feet. Youre talking billions of dollars of real estate that is being spent. At zip drug, we dont need that kind of real estate. Our economics are much, much stronger in that record. You come across as very confident and really understanding your market which is good. But im sitting here in seattle about four blocks from amazon. Im wondering why you didnt try to convince me how youre going to beat them and the other guy whos already have nationwide distribution. For that omission, im going to give you a c on the pitch. People do die every day from misusing or not taking their prescriptions. How you are actually going to help solve that problem . As it relates to other Companies Getting involved in the pharmacy space, its hard to back up and be compliant and start from scratch. So we started from position where we can do exactly what we need to do which just deliver consumable health care to patients. So the Actual Experience of going to the pharmacy is inconvenient. The medications themselves are growing in costs. So if he with make it more convenient and equally price order lesser priced than actually going to the pharmacy experience, i think we can help people take their medications. And how much does it cost . The first delivery is free. We charge a 10 Convenience Fee as part of the delivery. However, the zip drug platform has the zip drug discount program. We enroll patients into it and try find discounts. How is the udzer going to know that their specific medication is coming to them and when . Our messengers are full time employees of our company. The messengers are equipped with technology. When the medication gets picked up and dropped off, it is tracked. We require a photograph of the package at pickup and drofoff or else we dont release that medication. We heard what stu had to say. What is the panel in or out . What do you say . Theres is a huge opportunity around medication nonadherence. But the idea that the huge root of that problem just from people not wanting to stand in line or not able to stand in line is a little bit disingenuous. There are tons of other reasons around people not buying it because they dont have insurance, people not wanting to take it because of fear of side effects or understanding, you know, the injection regimes. So that is part of my issue. And im also not clear on what the huge competitive advantage is when other startups come into their geography. So unfortunate lishgs im out. What do you say, kel. I this is a great concept. I have to look. Narrator hood more. Know the numbers, know the margins. So i would say right now i have to be reserved and id love to see more things from this company and follow it and see what happens. So maybe in the future id reconsider but right now ive got to go without. All right. Two outs. What do you say . In or out . I came in here concerned that you were going get crushed by am zob and walgreens. What i heard is one of the winningest waults of a entrepreneur is really listening to the customer and understanding the problems and running around and patching holes. I think just whats your reaction. Were going to keep going. Thank you very much. Alicia kelly and that is todays power pitch. So are you in or out . Tweet us a thought using the powerpitch. For more go to powerpit powerpitch. Cnbc. Com. Carve heads. Its not easy. I was once working on a bust of Shaquille Oneill in swiss. I havent worked in swiss since. Everyone called me crazy. Things really took off when i got my domain name headsofcheese. 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Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to power lunch. The dow has fallen well over 160 points. Caterpillar. The banks at the bottom. A lot of people are waiting for what janet yellen says on monday. They say, do you think the stocks are going to close up. I nodded my head yes. One of the reasons is everybody wants to position themselves flat ahead of yellen next week. The path of least resistance for years has been on the upside of it. Path of least resistance before this morning at 8 30 was up. Todd gave you the technical perspective. The market has felt like it wanted to go up and then this throws you a little bit of a wrench because now youre not sure what janet yellen is going to say on monday on the back of that cratering jobs report. Coming up, gap or macys . Boeing or lougheed . Well debate those next on power lunch. Ah the freedom to watch your directv with unlimited data from at t. Its a steady stream of entertainment. Your favorite shows. Streaming on. You can just keep streaming. And streaming. Hello jim. So much streaming but id really like to go home now. My arms are very tired. Seize the data get unlimited data when you have at t wireless and directv. Switch and get up to 650 credits, per line. You wouldnt order szechuan without checking the spice level. It really opens the passages. Waiter. Water. So why would you invest without checking brokercheck . Check your broker with brokercheck. What are you doingetting faster. Huh . Detecting threats faster, responding faster, recovering faster. When your securitys built in not just bolted on, and you protect the data and not just the perimeter, you get faster. Wow, speed kills. Systems open to all, but closed to intruders. Trusted by 8 of 10 of the Worlds Largest banks. Welcome back to power lunch. Checking out whats happening with some of these gun related stocks like ruger and smith wesson, you see a sharp drop. The National Criminal instant criminal background check system, this is the system run by fbi for background checks on fire arms showed slowing growth in the month of may versus before that in april. Thats being put on for some of the move lower and some of the gun related stocks. That seems to be drawing a lot of action. We were just chatting about this. The context was there was a big uptick in background checks in prior months. Well, april checks were up 14. 4 year over year, may, up 2 year over year. The good news for the stocks is you see continued growth, but its slowing down. Youve got to give this a couple of days with smith s we son. Time now for a very special edition of a game we love to play on fast money at 5 00. This is how it goes. A pair of stocks or etfs and you choose one. First up, would you rap, gap or macys. Gap or macys. Gap was a disaster. The answer, gps. Look what its done recently. Macys is still a quagmire. I think gap is figuring out. Macys is i get it. You like lundgren. Dont start zbanging up on me. Its two minutes to the end of the show, i have to do another at 5 00. Next. Would you rather boeing or Lockheed Martin . Easy. Its been on our show for the past year, Lockheed Martin. Tremendous backlog. The stock continues to make alltime highs. With boeing you have commercial air risk. Would i rather . Lft will get you done. Last one. Simon, do you have something to say . Would you rather . T or gld. Both. The answer if i had to pick one, tlt, why . Tenyear rates are going to 1. 25. You heard it here. Youve been hearing it here. I was worried that tyler and michelle and twul auchlt its been great. Thanks so much. Thanks for the gummy bear. Thanks for watching power lunch. Closing bell started right now. Hi, everybody. Welcome to the closing bell. Im kelly evans with the new york stock exchange. And that makes me bill griffeth. Stocks well off their lous. The dow down 148 after that really surprising jobs report showing growth of only 38,000 jobs for the month of may. The smallest gain weve seen since 2010. On monday, wouldnt you know, fed chair janet yellen gives a Monetary Policy speech. Is she rewriting the whole thing right now . Is she making plans for Summer Vacation for herself and her federal officials . Well tell