I sent some over. Its very good. Power lunch starts right now. And welcome to power lunch. Three hours left in the trading session. And stocks are at near record highs. The dow currently up 130 points. The s p up 11. The nasdaq up 26 points. The nasdaq is very close to notching seven straight weeks of gains. We have a bunch of names that are hitting new 52week highs. Amazon, yahoo, ibm, and ross stores. Susan, over to you. Heres what else were watching this hour. Were seeing a huge rally in the Energy Markets with brent and wti both up more than 4 right now. Mortgage rates edging higher for a fourth straight week. Freddie mac says the average rate on a 30year fixed mortgage now standing at 3. 45 , and team usa continuing to lead the medal count at the rio games with a 32 total so far. 11 of those are gold. And the dual in the pool tonight. Lochte and phelps will swim it off one last time. Lets take a look now at warren, michigan. A live look in there. Any moment now, Hillary Clinton expected to give a big speech on the economy. A rebuttal, as it were, to mr. Trumps speech of monday. You will see it here live as soon as she begins. In the meantime, lets go to Cnbcs John Harwood in washington with what we can expect to hear. Hi, john. Well, youre right. Shes going to lay out her vision for the economy in michigan. But we dont expect new policy. We do expect her to go very hard after donald trump in light of his speech in detroit earlier this week. Two particular lines of attack that we expect from Hillary Clinton. One is to go after what she calls the trump friends and family discount. Thats a reference to the elimination of the estate tax, which benefits disproportionately wealthy family, given the fact that a married couple can give away 10. 9 million before the estate tax even applies. Second of all, she will go after what she calls the trump loophole. Thats the 15 rate he proposes on business income, corporate as well as passthrough corporations. Donald trump benefits from both of those mechanisms in the tax code, and shes going to go after that. Interestingly, donald trump was on squawk box this morning and he offered a very democratic sounding idea on how to approach more Government Spending for military and infrastructure. Normally you say you want to reduce your debt. The problem is you have a military problem. You have an infrastructure problem. A tremendous infrastructure problem. And you have other problems. And also, the asset is your rates are so low. Whats going to happen when the rates eventually will go up and you cant borrow, you absolutely cant borrow because theyre so expensive. It would destroy our balance sheet. Totally destroy the balance sheet. So youd be paying so little interest right now. This is the time to borrow. Well, and many democratic economists agree with what donald trump just said. Larry somers, the former treasury secretary among them. But republicans have been making the case for a long time. We need to get debt down. Well see how republican politicians react to that. Also how theyll react to Donald Trumps statement about what happens if he doesnt win the race. He sounded almost resigned to it. All i do is tell the truth. All i do is tell the truth. And if at the end of 90 days ive fallen short because im somewhat politically correct, even though im supposed to be the smart one, and even though im supposed to have a lot of good ideas, its okay. You know, i go back to a very good way of life. Its not what im looking to do. I think were going to have a victory. But well see. Its understandable why donald trump might be thinking about going back to that very nice way of life, because hes trailing in the polls. But republicans want to see some fight at this point, guys. All right, john, thank you very up many. John harwood in washington. Lets bring in someone who knows a lot about Hillary Clintons campaigning and her upcoming speech today. Alan kruger is professor of economics and Public Affairs at princeton university. Former chairman to the White House Council of economic advisers. Mr. Kruger, welcome. Welcome back. Nice to see you again, sir. Thank you, tyler, thanks for having me. Lets talk a little bit about a couple of the items that ms. Clinton is likely to pinpoint today in her remarks. One is the estate tax. Which she objects to repealing, which is one of the proposals that mr. Trump made. It would certainly help mr. Trump at the point of which he passes from view here. But tell me why the estate tax matters. It affects, like, one tenth of 1 of all estates in the country, number one. Number two, much of the income that is in most peoples estates has already been taxed at least once. Well, thats not always the case. And, in fact, with stepped up basis, much of it escapes being taxed at all. What mr. Trump is proposing is an enormous tax cut for those who have estates above 11 million. Its a tax cut, which frankly, those people dont need. And many of them are not asking for. Why not do away with the step up in basis . Well, i think there are many things we can do to improve the estate tax. But i wouldnt start by eliminating it. Lets talk a little bit about the other presumed target in her speech. And that would be the passthrough income provision that he has called for, which would allow many businesses who currently collect business income and report it on their individual returns, to report it separately as business income. How would that work . Why does mrs. Clinton oppose it so . Well, what he has proposed is i would consider a giant loophole to tax much of the income that Business People are earning at 15 rate. And he emphasizes that hed like to get away with the carried interest loophole, but this actually creates a bigger one. I think economically, the problem is that its difficult to distinguish capital from labor earnings. This would create a giant gap between the rate that labor earnings are taxed at and business income is taxed at. And a lot of people will then rearrange their lives to make their labor earnings look like business income. Lets go to a couple of the things that mrs. Clinton has already proposed. I watched her convention speech, and i found myself asking, how the heck is she going to do that . Tuitionfree college for the middle class. And debtfree college for all. How will she pay for that . Well, i think thats one reason why its important not to have such enormous tax cuts when our nation has more important priorities, such as making College Access more affordable. So it would come from presumably the people who pay taxes . It would just be paid out of tax revenue . No, there are a number of components to her proposal. For example, people with Student Loans will be able to refinance them at more affordable rates. Theyll be able to contribute as a share of their income and income contingent loans. Community colleges would have free tuition under her plan. So there are a variety of different components to it. Alan kruger, thank you very much. Nice to see you again, sir. Thanks for having me. A news alert in the bond market. 30year bonds are up for auction. Rick santelli tracking the action at the cme. Rick, whats the demand like . Demand was hugely average. A complete c. C as in charlie. Everything about it was average. Look at these charts as im giving you the information. Yields rising in all the markets affected this to some extent. Right about where it was trading, and that happened to be a high yield. Of course, and low price due to what was going on in the marketplace. Everything about it was average. Right down to the 61. 5 index, and it is, large. We talked about why many institutions have an appetite for paper. Its kind of out of circulation due to central bank offers. But everything there, the average is 61. Everything about average. 62 billion in the market now gone. Well watch the aftermath. Back to you. Thanks so much, rick. Well keep you updated on that. Dont go anywhere. Power lunch is Just Moments Away from Hillary Clintons big speech on the economy. Well bring it to you live as soon as it begins. Stay tuned. A good car has to maneuver quickly. Thats also true of a good car company. People have always bought cars. But we saw an opportunity in sharing cars. So we moved fast and launched car2go in 29 cities, all around the world. Doing that required dozens of data centers, designed for speed and performance. We built our business on the ibm cloud. Because thats what the ibm cloud is built for. Welcome back to power lunch. You are looking live no, youre looking live at me. Lets bring in larry kudlow, informal adviser to donald trump, and roger altman, evercorps executive chair, informal adviser to the clinton campaign. Good to have you both back. Susan will jump in here as well. Larry, we just spoke with mr. Kruger, and i asked him about the estate tax in particular, which is one of the things mr. Trump would do away with. It affects a very small, very wealthy percentage of the economy. My feeling on the estate tax, frankly, is that i dont think death should be a taxable event. And that much of the income that is built up in an estate has already been taxed. He took a different point, which is to say that the step up in basis means that a lot of it hasnt been taxed. Whats your response there . Wait, wait the step up in basis doesnt affect the estate. First of all, thats a Capital Gains issue. Yes. Second of all, they have been taxed every year on the income of their business. Right. So when youre taxed at death, youre double taxing. Regarding the Capital Gains and the socalled stepup, that depends on what rules are in place at any given moment in time. Weve gone both ways down through the years and theres a lot of uncertainty there. Could also have tax on dividends. Why would you triple tax something . This idea that its only a handful of people, that may be true. But i want to reward success wherever it is. I do not want to punish it on some phony inequality socialist income leveling ground. I dont believe that. Pick up on any of those issues with the estate tax. I assumed you would share his view that it is not what we ought to be doing, and that is to recategorize as business passthrough income taxed at 15 income that currently may show up on individual returns and get taxed at a higher rate. What would that do to receipts that the federal government collects . I assume you think thats a bad idea. Explain why. Well, i think the proposed elimination of the estate tax, which is untimely in the extreme, is a metaphor for the whole trump plan. What is the trump plan about . The only thing its about and i have a lot of respect for larry kudlow, who ive known for a long time, but the only thing its about is huge tax cuts for corporations, reducing the current corporate rate from 35 , to 15 . And for the highest earning individuals, reducing the top tax rate to 33 . By the way, a rate lower than even george w. Bush proposed when he cut taxes in the early years of his presidency. The first would cost five trillion over 20 years. The second would cost 7 trillion over 20 years. The Current National debt is 19 trillion. It almost doubles the National Debt. And theres nothing in this plan whatsoever that will help middle income americans who are the americans who have not participated in the economics of the past ten to 15 years. We all know that. Secretary clintons plan is completely the opposite. Her plan is aimed only at middle class americans, and with a goal of finally getting the incomes moving up. And you know the elements of her plan. A huge infrastructure program. God knows we need that. Everybody knows our ports and our airports and roads are deteriorating. By the way, theres not a word of the trump plan, at least in his detroit speech about infrastructure. Second, college affordability. Third, making it easier for working families to raise their kids. Paid leave. Higher earned income tax credit. Higher minimum wage. And fourth, inclusive growth. I thought i heard i thought i heard mr. Trump address it exclusively. Not in his detroit speech. He said a few words about it this morning. Roger altman is an old friend and a good guy, but were going to have to disagree on this. First of all, were in a near recession. Weve had the worst recovery since world war ii. That was the headline in the wall street journal friday, i think it was. You need progrowth measures. That means we have to have a competitive Corporate Tax system. There isnt hardly an economist worth his or her salt who disagrees that anacronistic tax system. We need that cash to come home, to rebuild everything. Rebuild infrastructure, rebuild investments, rebuild productivity, rebuild wages, and rebuild jobs. That has to be number one. Mrs. Clinton hasnt even talked about Corporate Tax reform. What mr. Trump does, which is by the way what kevin brady does, the head of the ways and means committee, they apply it to the smaller businesses. That is also what we should do to encourage success. Small businesses have become gigantic businesses. So we need a growth program. Let me bring in kayla, who wants to jump in. Both of these plans, both Donald Trumps plan and Hillary Clintons plan do place some target on companies that are providing jobs overseas. Hillary clinton wants to institute an exit tax for companies that leave, whereas donald trump wants to basically have a reentry holiday for companies that come back. As someone who runs a company that advises big corporations on these decisions, which of those plans is more effective . Well, im no fan of inversions. Ive said that before, including on cnbc. I dont think that most cases where companies have chosen to do some merger in order to redomicile themselves for tax purposes in ireland or the cayman islands, i dont think those make sense. I dont particularly think theyre patriotic. I think an exit tax is a good at a minimum. Roger or kayla. Believe me, im sorry to correct me. But trumps plan has a im an equal opportunity guy. I adore kayla and she knows that. But the point is, in his speech, he specifically says theres going to be a 10 penalty for repatriation. Now, whether thats one time, one year, or spread over three years, those details have let to be tallied up. But its cheaper than it currently is right now. Well, look, it will be cheaper. Youre exactly right. The whole point of this exercise i mean, rogers right. I dont like inversions either. If you slash the tax rates and give them cash expensing, which is in the trump plan, which every business person in this country wants, they will come home. Their cash will come home. And more than that. Theyll come to the usa. Its incalculable. Trillions of dollars will come to this country after Corporate Tax reform. We will become the investment destination of the world, which we used to be, but weve fallen behind, and thats exactly what we need. We need that money to rebuild, to reinvest, to restart productivity. And to give middle income people. Roger, heres where you and i disagree. The Corporate Tax beneficiary. The biggest beneficiary is middle income wage earners. Just look at the studies. Even my buddy Jared Bernstein agrees, although we may disagree on the quantity. Left of center and right of center, think tanks both agree, the middle income wage earner benefits from lower Corporate Tax. Listen, larry, with all due respect, the trump plan is nothing more than tired, old, and widely discredited trickle down economics. Lets cut Corporate Tax rates by 20 points. Lets cut the highest rate on income tax that the highest earnings pay and lets hope some of it trickles down to middle income americans. That has been tried. That doesnt work. This is really old news. What we need and trickle down is a pejorative word. Except that its accurate. It is not accurate. What we need is an incentive. A return to the incentive model of growth. If it pays more, youll get more of it. If it pays more after tax, youll get more investment. Youll get more work effort. Youll get more risk taking. Ill give you 20 years. You were a distinguished member of the Clinton Administration. I liked you there. I like clintons economics, particularly in the second term. Operating off the incentive model worked. Look at the growth rates compared to what weve had the last seven, eight, nine years. Hell, ill even make this bipartisan. Even my friend george w. Bush went off the incentive model partially and spent too much money. But the point im making is that this country hasnt grown in 15 years and our middle income wage earnings havent had a wage hike in 15 years. I say its time to return to the incentive economics of the 80s and 90s. Were going to try to sneak in a quick break here. Dont go anywhere. Were moments away from Hillary Clintons big speech on the economy. Well bring it to you live as soon as it begins. And as we head out to break, ill look at the rally this hour. The dow is up triple digits, hitting new highs. Power is back in two. Eeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Welcome back, everybody, to power power. Hillary clinton is moments away from giving a speech on the economy. Lets bring back larry kudlow, informal adviser to donald trump. And roger altman, who was, as larry pointed out, part of the Clinton Administration under bill clinton. Chair and informal adviser to the clinton campaign. You guys are both informal. Lets talk a little bit about trade here. Mr. Trump has at one point or another threatened tariffs. But basically, they seem to have converged in terms of their views of what needs to happen with some of the existing trade deals, whether its nafta or the tpp or a trade deal with korea, by the way. You put your finger on a huge difference. We tried that approach during the 1930s. It had a lot to do with the bringing on the great depression. Its a terrible idea. Which would provoke another trade war, including with china, the last thing we need. So theres an enormous difference right there. And probably a very glaring one. Ive been next to larry plenty of times over the past couple of months, and i think hes rejoiner will be that mr. Trump is in favor of trade, but he just wants to see the agreements enforced, the existing agreements enforced. Isnt that something that sounds very reasonable to you . Well, if youre asking me, the answer is yes. We need to do a better job enforcing our trade agreements, and thats why secretary clinton has proposed a trade prosecutor within ustr. So she agrees on enforcement. But at this point, about an import duty or import tax, theres a huge difference. That is a truly, truly dreadful idea. Look ill be honest with you. Ive had my disagreements with mr. Trump regarding trade. Particularly regarding some of his language last winter regarding trade, and throwing out numbers about tariffs. I am a free trade guy, and i have an intense dislike for tariffs, which is a tax on consumers. Of course. And some businesses. But let me just say this. In the detroit speech, he put in a good line that he appreciates the benefits of trade, and he supports trade, as long as its fair. And roger, regarding tariffs, look. Mr. Clinton, mr. Obama, mr. W. Bush, and mr. Reagan, for whom i served, all had to use temporary targeted tariffs where there were deal breakers. All right . Reagan and i didnt even like it. I lost that battle, but others prevailed. Reagan slapped on tariffs and semiconductors and motorcycles in japan. Did it work . I dont know if it worked, you want to know the truth. But all ill say regarding trump and clinton. They both need to enforce the law. And if the law is repeatedly broken, as it is in china, i might add, i really single out china as the bad guys on this. Then the United States has to take action. And i may find that distasteful in some theoretical sense, but if theyre going to lie, cheat, and steal. If theyre going to take 350 billion of intellectual Property Rights from american companies, then they have to pay for that. There has to be some action taken. Yes, kayla . Larry, what are the odds that if there are even temp rorary import duties, whats to stop companies from passing that through to the consumers and making goods more expensive for them . These Companies Want to stay profitable. I remember someone telling me that profits are the mothers milk of the economy. Yes. I dont know where ive heard this. It was the mothers milk of stocks and the life blood of the economy, but you get an aplus for that. Look, i dont think its the countrys interest. They dont want to do that. Nobody wants to do that. It cuts into our profit margins. By the way, wages overseas in china are rising, not falling. So, no. I dont think its good economics. I dont think its Good Business practices. I think these things should be publicized, so Everybody Knows whos doing what to whom. American business is pretty good in this. Were an open country. I think our average tariff is about 2. 5 . Steve liesman may disagree with that, but im not going to be far. I think its about 2. 5 . Weve always been the best open free trade company. And look, again, i would like to see mr. Trump cool the rhetoric, but he has. He actually has listened to us on this. What hes really saying is, if we have to renegotiate deals, then so be it. But somebodys got to stand up for the american business. Somebodys got to stand up for the American Worker. And it is a law on the books, even paul ryan supports this approach. Steve liesman is here. Well, not standing up for the American Worker to say the heart of my plan is massive corporate and high earner tax cuts. That is not standing up for the American Worker, im sorry. I just got through. Well have to meet secretly. I will buy you dinner and i will pull out the research numbers on how these Corporate Tax cuts benefit the wage earnings. Well put paper on the table. Well get them to let us. Im buying and im going to show you. Center left and center right. They may disagree on the quantities, but everybody believes that lower Corporate Taxes will leave room for better wages and better benefits. Steve liesman, jump in. It depends on your theory. I accept. He accepts. Weve got a deal this is bipartisanship right here, i love it. He accepts because hes a good guy, thats why he accepts. It depends a little bit on your theory of the case. Most economists larry would be in the mainstream of economics right now. And im a little surprised, roger, that you and the democrats arent there as well, because the differential in Corporate Tax rates creates distortions that are not counterveiled by any other policy. You have to have an offset. You have to do all these gyrations and dances to get to that average tax rate. Its the sclerosis of our system that one side of 28 and the other side of 25 could never come together on this. But both sides agree that the Corporate Tax rate and the effective rate needs to be lowered. The key point there steve makes some good substantive points. The main thing i heard was that he put me in the mainstream. You just made my point. Secretary clinton has not yet detailed her plan, but she argues will thereby reform. And you just noted that the difference between the republican plan and the democratic plan on Corporate Tax reform was the difference between 28 and 25 . Yes, there should be, in my view, a lowering of the american Corporate Tax rate. But the idea that we should lower it to 15 , i think, is nuts. Id love to get all of your views of this. Its something ive raised with larry in the past, and that is the idea that we make all of these distinctions about income, depending on where its made, who made it, in what kind of enterprise. Weve got business income thats taxed at one rate. Weve got individual income thats taxed at another rate. Weve got the carried interest matter thats taxed at yet another rate. Why isnt income income . Why cant we do that so that the tax code then does not distort behavior or the ways businesses are structured so that they take advantage and game the system . Why isnt income just income . Well, theres a pretty good argument broadly speaking for a much simpler tax system, which does not differentiate as much between types of income, as you just said. But for example, historically, it has been the case, or been the mainstream view that a Capital Gains rate, which is lower than ordinary income rates, was a good idea to incentivize longterm investment. I happen to agree with that. So i dont think its probably ideal to imagine that we have one rate on every kind of income. But youre right. The Current System is way too complicated and has a lot of perversities in it. I absolutely agree with what roger just said. And also Steve Liesman. And also tyler matheson. Im A Steve Forbes i always have been. Me, i would abolish the Corporate Tax altogether. Its a silly tax. And i would just have a nice flat tax rate with no exemptions and deductions. Somewhere in the neighborhood of 20 , 21 , where actually studies have said it works out. We dont need a Corporate Tax. Let Everything Else be taxed at the same. Were going to try to squeeze in a break before ms. Clinton comes in. Once you go down the rabbit hole, theres no going back when it comes to providing certain deductions. And if you have a concept of taxes being progressive. Once you go down that and you start to differentiate between the mobility of capital, which you then tax at a lower rate, and the immobility of labor, thats when you get into a place where you start to say, you know what . I need to tax these. Im going to think about that. It doesnt make it right. But its once you start going that was a densely packed thought. You told me to be quick. You have gotten off the beaten path. We need to come back and review that. I need to think about that one. Dont go anywhere. Were Just Moments Away, arent we . Still waiting for Hillary Clinton, her big speech on the economy. Well bring it to you live as soon as it begins. And as we head out, a look at the rally so far this hour. The dow is up triple digits, with new highs in the session. Power is back in two. [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Perfect timing. We come out of a break and go to Hillary Clinton in warren, michigan. I am thrilled to be here for a number of reasons. First, its wonderful to be back in michigan. You can really feel the energy and dynamism that is driving this states comeback. And in detroit, weve got new businesses opening. Neighborhoods like midtown and Eastern Market are coming back. The Auto Industry just had its best year ever. Over in ann arbor, hightech firms are thriving. The next generation of engineers are getting trained. And here, at futureamic, so well named, you are on the front lines of what i believe will be a true manufacturing renaissance in america. And i just was given a short, but exciting tour by mark jurak and john couch, who were telling me about how this company was started as, and for most of its early history was an auto supply company. And then in 2000 as the market began to change and some of the Auto Companies began to realign, they were faced with a choice. We all face choices in life, dont we . And this company could have just said hey. You know, our business is not going to be what it was. We got to just fold up. Lets just, you know, kind of quit. Thats not what happened here. And what happened here is what can happen across america. You are in now what is largely an aerospace company. And because of the work force and the work ethic and the commitment, you are seeing the future unfold. So i got to see whats happening here, to help build the sls rocket that is going to go from mcholm to mars. [ applause ] i saw the two halves of an f35 nose cone waiting to be put together. I talked with some of the workers about about the absolute perfection that is required to do this work. And what i believe with all my heart is that whats happening here can happen in so many places, if we put our minds to it, if we support advanced manufacturing, if we are the kind of country that once again understands how important it is to build things. We are builders, and we need to get back to building [ applause ] so were making progress. None of us can be satisfied until the economic revitalization were seeing in some parts of michigan reaches every community, but it is inspiring to see this combination of Old Fashioned hard work and cutting enl innovation. And i know my opponent in this election was here in michigan about a week ago, and it was like he was in a different place. When he visited detroit on monday, he talked only of failure, poverty, and crime. He is missing so much about what makes michigan great and the same is true when it comes to our country. He describes america as an embarrassment. He said, and i quote, were becoming a third world country. Look around you, my friends. Go visit with the workers building rockets. That doesnt happen in third world countries. We have a lot of urgent and important work to do. Thats what im going to talk about today. Because all the people that i have met throughout this campaign really prove how wrong this negative pessimistic view is. Americas best days are still ahead of us if we make up our minds to actually go out and make that happen. Just consider our assets. We have the most dynamic, Productive Work force in the world. Bar none. We have the most innovative businesses. The top colleges, universities, Community Colleges, Training Programs in the world. And the best science and technology. We have enormous capacity for clean energy production. We are resilient, determined, hardworking. There is nothing america cant do if we do it together. And i know this because this is how i was raised. And i dont think mr. Trump understands any of it. He hasnt offered any Credible Solutions for the very real economic challenges we face. Now, those challenges emerged long before the great recession, and they have persisted through our recovery. There is too much inequality, too little upward mobility. Ttz just too hard to get ahead today. But there are common sense things that your government could do that would give americans more opportunities to succeed. Why dont we do it . Because powerful special interests and the tendency to put ideology ahead of political progress have led to gridlock in congress. And how can you not be frustrated . A lot of people feel no one is on their side and no one has their back. And that is not how its supposed to be in america. If i am fortunate enough to be your president , i will have your back every single day that i serve. [ cheers and applause ] and my mission in the white house will be to make our economy work for everyone, not just those at the top. This is personal for me. I am the product of the american middle class. I was born in chicago. I was raised in a suburban. But my grandfather worked at the scranton lace mill in scranton, pennsylvania, for 50 years. And because he worked hard, my dad was able to go to college, and eventually start his own Small Business. And then send me out into the world to follow my own dreams. No matter how far those dreams have taken me, i have always remembered, i am the daughter of a Small Business owner, and the granddaughter of a factory worker, and proud of both. [ applause ] so heres what i want. I want every American Family to be able to tell the same story. If you work hard, you do your part, you should be able to give your children all the opportunities they deserve. That is the basic bargain of america. Now, whether we will be able so renew that bargain on even better terms for the 21st century depends in large measure on the outcome of this election. So here are four questions that i hope the American People will ask of both candidates. And that the answers should help make your choice in november crystal clear. First, which candidate has a real plan to create good paying jobs . Second, who will restore fairness to our economy and ensure that those at the top pay their fair share of taxes . [ applause ] third, who will really go to bat for working families. And fourth, who can bring together to deliver the results that will make a difference in your lives. And i hope that after giving a fair hearing to both sides, you will join the millions of people across our country supporting this campaign. Not just democrats, but a growing number of republicans and independents as well. Now, when it comes to creating jobs, i would argue its not even close. Even conservative experts say trumps agenda will pull our economy back into recession. And according to an independent analysis by a former economic adviser to senator john mccain, if you add up all of trumps ideas, from cutting taxes for the wealthy and corporations to starting a trade war with china, to deporting millions of hardworking immigrants, the result would be a loss of 3 3. Million jobs. Now, by contrast, the same analyst found that with our plans, the economy would create more than 10 million new jobs. Let me tell you how i would do that. I believe every american willing to work hard should be able to find a job that provides dignity, pride, and decent pay, that can support a family. So starting on day one, we will work with both parties to pass the biggest investment in new good paying jobs since world war ii. [ applause ] we will put americans to work, building and modernizing our roads, our bridges, our tunnels, our railways, our ports, our airports. We are way overdue for this, my friends. We are living off the investments that were made by our parents and grandparents generations. We will also help cities like detroit and flint connect underserved neighborhoods to opportunity expanding affordable housing, and we will repair schools and failing Water Systems as well. [ applause ] you know, i happen to think we should be ambitious. While were at it, lets connect every household in america to broadband by the year 2020 [ applause ] its astonishing to me how many places in america not way, way far away from cities, but in cities and near cities that dont have access to broadband. And that disadvantages kids who are asked to do homework using the internet. Five million of them live in homes without access to the internet. So you talk about an achievement gap. It starts right there. And lets build a cleaner, more resilient power grid with enough Renewable Energy to power every home in our country as well. Some country is going to be the Clean Energy Power of the century and create millions of businesses. Its probably going to be china, germany, or america. I want it to be us. We invent the technology, we should make it. And use it. And export it. Which will help to grow our economy. And heres something that you dont always hear enough of from democrats. A big part of our plan will be unleashing the power of the private sector to create more jobs at higher pay. And that means for us creating an Infrastructure Bank to get private funds off the sidelines and complement our private investments. 25 billion in government seed funding could unlock more than 250 billion and really get our country moving on our infrastructure plans. And were going to invest 10 billion in what were calling make it in america partnerships to support American Manufacturing and recommit to Scientific Research that can create entire new industries. When mark and john were giving me the tour and i was talking to some of the workers along the way and asking them where some of the Precision Machinery came from that is being used here, what i hear all over the country, germany, japan, italy. I want to bring that Precision Manufacturing back to the United States. There is no reason we cant begin to make those machines ourselves and supply the rest of the world instead of buying from somewhere else. Lets also expand incentives like the new market tax credits that can bring businesses, government, and communities together to create good jobs in places that have been left out and left behind. From neglected neighborhoods in detroit and flint, to logging country, coal country, native american communities, from rural areas, ravaged by addiction and lost jobs, to industrial regions hollowed out when factories close. As president , i will also make a major push to empower Small Businesses and entrepreneurs. With new National Initiatives to cut red tape at every level and expand access to credit, especially through kmaunty banks and credit uni Community Banks and credit unions. I will propose a new plan to dramatically simplify tax filing for Small Businesses. Right now, the smallest businesses, the kind of that my dad had, it was a really Small Business, spent 20 times more per employee to prepare their taxes compared to larger companies. It should be as easy as printing out a bank statement. Lets free entrepreneurs to do what they do best. Innovate, grow, and hire. As mark said, this Company Started because of a drive down a road and thinking about it, talking about it, then seeing one of the oldsmobiles and thinking hey, not only do i have an idea, ive got a name. And america, if you can dream it, you should be able to build it and were going to get back to doing that. Now, donald trump has a different view. Hes made a career out of stiffing Small Businesses from Atlantic City to las vegas. There were companies that were left hanging because he refused to pay their bills. A lot of companies scrape together what they could to pay their employees, and many of them put their businesses at risk, and some of them ended up taking bankruptcy. It wasnt because trump couldnt pay them, it was because they wouldnt pay them. Thats why i take it personally. My dad ran a printing plant. He had two really long tables. He printed fabric for draperies. He would lay out the fabric, and then he would take a silkscreen and he would go down the table, hed put the silkscreen down, pour the paint in, take the squeegee, go across the screen, lift it up. All the way to the end. Then hed start on the other table. He worked hard. And then when he finished, he would load all that fabric up, put it in his car, and take it to the business that ordered it. Maybe a restaurant or a hotel or some office. He expected to be paid when he showed up. He did the work. He paid for the supplies, and the labor that he often hired to help him on big jobs. He expected to be paid. I cant imagine what would have happened to my father and his business if he had gotten a contract from trump. And showing up and submitting his bill had been told were not going to pay. If you dont like it, sue us. My father never could have sued a Big Organization like that. I just dont understand it. Ive met all kinds of workers, painters, plumbers. Ive met Small Businesses that provided pianos and installed glass or marble, all of whom were denied payment, and after going back time and again, being told well, maybe well pay you 30 cents on the dollar, or 50 cents on the dollar. Thats not how we do business in america. So weve got to create more good jobs that are going to help more people. For example, our modern Service Economy is empowering consumers with more choices and greater flexibility. But we do have to empower the workers in our service sector, too. The people taking care of our children and our parents. They deserve a good wage and good benefits. And a secure retirement. And its crucial that every american have access to the education and skills they need to get the jobs of the future. So we will fight to make college tuitionfree for the middle class. And debtfree for everyone. We will also liberate millions of people who already have student debt by making it easier to refinance and repay what you owe as a portion of your income so you dont have to pay more than you can afford. [ applause ] it is just not right that donald trump can ignore his debts, but students and families cant refinance their debt. And heres Something Else that i really want to emphasize. I dont think anybody in america is talking about this enough. And that is a fouryear degree should not be the only path to a good job in america. You should be able to learn a skill, practice a trade, make a good living doing it. So Many Americans have the talent and the will to succeed. Whether theyre kids right out of high school or older people displaced by automation and outsourcing. And for too long, big promises about the power of training and retraining havent delivered like they should. It doesnt help anybody to be trained for a job that doesnt exist. So heres what were going to do. We will support high quality union Training Programs. We will propose [ applause ] we will propose new tax credits to encourage more companies to offer paid apprenticeships that let you earn while your learn. We will do more, including a National Campaign to dignify skills training across the board. I think weve got to reverse what has become a kind of common place view, which is Everybody Needs to go to college. In fact, more than half of the jobs that will be available in 2020 do not require a college fouryear degree. So for welders and machinists and Health Technicians and coders and so many others, lets get the word out. There are really good jobs for people right now, and there will be more in the future if you get the skills in high school, at Community College, in an apprenticeship, or in another training program. And i want to acknowledge the great role that the Community College here in mccomb county has played in working with Companies Like this one to make sure people do have the skills. I imagine some of you might be thinking that all sounds good, but what about trade . After all, trump talks about it all the time. Lets start with this. It is true that too often past trade deals have been sold to the American People with rosie scenarios that did not pan out. Those promises now ring hollow in many communities across michigan and our country that have seen factories close and jobs disappear. Too Many Companies lobbied for trade deals so they could sell products abroad, but then they instead moved abroad and sold back into the United States. It is also true that china and other countries have gained the system for too long. Enforcement, particularly during the bush administration, has been too lax. Investments at home that would make us more competitive have been completely blocked in congress. American workers in communities have paid the price. But the answer is not to rant and rave, or cut ourselves off from the world. That would end up killing even more jobs. The answer is to finally make trade work for us, not against us. So my message to every worker in michigan and across america is this. I will stop any trade deal that kills jobs or holds down wages, including the transpacific partnership. Ill oppose it now. Ill oppose it after the election. And ill oppose it as president. As a senator from new york, i fought to defend new yorks manufacturers and steel makers from unfair chinese trading practices. And i opposed the only multilateral trade deal that came before the senate while i was there because it didnt meet my hi bar. As secretary of state, i fought hard for american businesses to get a fair shot around the world and to stop underhanded trading practices like currency manipulation and the theft of intellectual property. So as president , i will stand up to china and anyone else who tries to take advantage of American Workers and companies. And im going to ramp up enforcement by appointing for the first time a chief trade prosecutor. I will triple the number of enforcement officers, and when countries break the rules, we wont hesitate to impose targeted tariffs. Now, mr. Trump may talk a big game on trade, but his approach is based on fear, not strength. Fear that we cant compete with the rest of the world even when the rules are fair. Fear that our country has no choice but to hide behind walls. If team usa was at fearful as trump, Michael Phelps would be cowering in the locker room afraid to come out and compete. Instead, theyre winning gold medals. America isnt afraid to compete. Right now, thousands of Michigan Companies are exporting billions of dollars of products around the world. We want them to sell even more and create even more jobs here at home. But corporations should not abandon profitable operations here in the United States to move abroad. Just to give shareholders a quicker return. Ceos a bigger bonus. And unions a weaker hand to play. Now, before he tweets [ laughter ] about how hes really the one who will put America First in trade, lets remember where trump makes many of his own prugt products because it sure is not america. Hes made trump ties in china and trump suits in mexico instead of here in michigan. He keeps saying its not possible to make these things in america anymore. And thats just wrong. So we created a website. Hillaryclinton. Com makeithere. On it we list 100 places across the United States that are already producing similar goods. One positive thing trump could do to make America Great again is actually make great things in america again. [ applause ] now, lets look at the second question. Which candidate will fight for fairness . And this is an urgent need. We need to grow the economy and we need to make it fairer. The tide is not rising fast enough, and it is certainly not lifting all boats. Since the crash, too many of the gains have gone to the top 1 . The rules and incentives in our system reward corporations for putting shortterm stock prices above longterm investments in their workers equipment and research. Corporate profits are at near record highs, paychecks for most people have barely budged. Incomes arent growing fast enough to keep up with the cost of living like prescription drugs and childcare. I believe that every employee from the ceo suite to the factory floor contributes to a businesss success. So everybody should share in the rewards. Especially those putting in long hours for little pay. So im proposing a new tax credit to encourage more companies to share profits with workers. And more broadly, we will fight for a more progressive, more patriotic tax coat that puts american jobs first. Right now, when a corporation outsources production, it can write off the costs. We must stop that and we must make them pay back any tax breaks they ever received from any level of government in our country. [ applause ] and for those that move their headquarters overseas to avoid paying their fair share of taxes, theyre going to have to pay a new exit tax. So if they want to go, theyre going to have to pay to go. [ applause ] and wall street corporations and the super rich should finally pay their fair share of taxes. Thats why i support the socalled buffett rule. Because multimillionaires should not be able to pay a lower tax rate than their secretaries. [ applause ] we should also add a new tax on multimillionaires. Crack down on tax gaming by corporations. And close the carried interest loophole, something ive advocated for years. Now, compare what trump says. Now, there is a myth out there that he will stick it to the rich and powerful because somehow hes really on the side of the little guy. Dont believe it. Not when he pledges to rip up basic rules that hold corporations accountable. When he wants to scrap regulations that stop polluters from poisoning the air our children breathe and the water we drink. Let Insurance Companies write their own rules again. Trump would roll back the tough rules that we have imposed on the financial industry. Ill do the opposite. I think we should strengthen those rules so wall street can never rack main street again. [ applause ] trump even wants to abolish the Consumer Financial protection bureau. A new agency that has already returned more than 11 billion to 25 million americans who were taken advantage of by corporations. Why would you get rid of that . And then there is trumps tax plan. He would give trillions in tax cuts to big corporations, millionaires and wall street money managers. That would explode our National Debt and eventually lead to massive cuts in priorities like education, health care, and environmental protection. In his speech, he called for a new tax loophole. Lets call it the trump loophole. Because it would allow him to pay less than half the current tax rate on income from many of his companies. Hed pay a lower rate than millions of middle class families. One nonpartisan described this plan as, and i quote, a really nice deal for donald trump. Its hard to say how nice, because he refuses to do what every other president ial candidate in decades has done and release his tax returns. But we do know that the 400 richest taxpayers in america would get an average tax cut of more than 15 million a year from the trump loophole. And then theres the estate tax, which trump wants to eliminate altogether. If you believe hes as wealthy as he says, that alone would save the trump family 4 billion. It would do nothing for 99. 8 of americans. So theyd get a 4 billion tax cut and 99. 8 of americans would get nothing. Just think of what we could do with those 4 billion. We could pay for more than 47,000 veterans to get a Fouryear College degree. We could provide a years worth of health care to nearly three million kids. Or find a years worth of federal assistance to state and local law enforcement. I think there are a lot of better ways to spend the money. On monday, im going to be in scranton, pennsylvania, with Vice President biden. He has a saying, dont tell me what you value. Show me your budget and i will tell you what you value. Well, donald trump wants to get trillions in tax breaks to people like himself. I want to invest it in veterans, our kids, our police officers, and so much more, and then you can draw your own conclusion about values. Its true that both of us have proposed to cut taxes for middle class families. Hes making a big promise. But his advisers have said, his own advisers have said he may not stand by them. Instead, the tax cuts he doubled down on in his speech in detroit on monday offer trillions to the richest americans and corporations. One of the differences between donald trump and me is im telling you what i will do. Im laying out my plans. And i will stand by them and want you to hold me accountable for delivering results. This all reminds me of that old saying, if it sounds too good to be true, it probably is. That brings us to the third question. Which candidate can you actually count on to go to bat for workers and working families . It is not enough to pay lib service to being on your side. We have to recognize how americans actually live and work in the 21st century and then offer Real Solutions that make your lives easier. We know that women are now the sole or primary breadwinner in a growing number of families. We know more americans are cobbling together parttime work or striking out on their own, so we have to make it easy to be good workers, good parents, and good care givers all at the same time. Thats why ive set out a bold vision to make quality, affordable childcare available to all americans and limit the cost to 10 of family income. On monday, trump offered his first real ideas on this topic. Because previously, he had dismissed concerns about childcare. He said it was, not an expensive thing because you just need some blocks and some swings. Now he says he wants to exclude childcare payments from taxation. His plan was panned from the left, the right, the center, because it transparently is designed for rich people. Like him. He would give wealthy families 30 or 40 cents on the dollar for their nannies and little or nothing for millions of hard working families trying to afford childcare so that they can get to work and keep the job. I think instead, we should expand the Child Tax Credit to provide real relief to tens of millions of working families struggling with the cost of raising children. The same families that his plan ignores. And thats just a start. Because the more we do to help working families, the more our entire economy will benefit. For example, guaranteeing equal pay wont just increase paychecks for women. It will boost Family Budgets and get incomes rising across the board. I dont understand why trump is against that. Paid family leaf wont only make life easier for moms and dads, it will also keep skilled americans in the work force and grow our economy. Thats why every other advanced country already has it. Again, hes against it. Raising the federal minimum wage wont just put more money in the pockets of lowincome families, it also means they will spend more at the businesses in their neighborhoods. This is something that even the original automakers understood way back at the beginning of the 20th century when they decided to pay the unbelievable sum of 5 a day to auto workers. And when they were criticized by other businesses, how can you pay that much . They had the best answer, we want people to be able to buy our cars. This is economics 101. We need to get incomes and wages rising, and it will help the whole economy grow and be fairer. And protecting and expanding Social Security doesnt just help Older Americans retire with dignity, it helps to ease burdens on families and communities. And i also believe the same thing about comprehensive immigration reform. We already have millions of people working in the economy and paying 12 billion a year to Social Security even though they are undocumented. So by moving toward reform, we will unleash a lot of new income and growth and we will level the Playing Field so that American Workers cant be taken advantage of, because undocumented workers can be exploited by employers, which is one of the reasons we have this disconnect. And finally, strengthening unions doesnt just serve members, it leads to better pay and benefits and working conditions for all employees. Ive also said i will defend and improve the Affordable Care act. For me, that includes giving americans in every state the choice of a Public Option Health Insurance plan that will help everybody afford coverage. It will strengthen competition and drive down costs. Now, these are all causes ive worked on for decades, and i believe they point to a fundamental truth about our economy. It can seem like a zero sum when you are competing for a job, a promotion, or a contract. If someone wins and someone loses. But that is not the full picture. If you step back, youll see were all in this together. If we can grow together, we can all rise together. Because, you know what i like to say, we are stronger together. And thats why the fourth question [ applause ] the fourth question is key. Who can bring everybody together to get any of this done . Well, i believe i can, because i think i can provide serious, steady leadership that can find Common Ground and build on it based on hard, but respectful bargaining with the other side. Leadership that rises above personal attacks and name calling, not revels in it. I just dont think insults and bullying is how were going to get things done. And i dont think that thats the appropriate approach for us. There was a time when republicans and democrats actually worked together. I know thats true. I did it as first lady, senator, and secretary of state. Its how we created the childrens Health Insurance program, which covers eight million kids. Its how we rebuilt new york after 9 11 and how we passed a treaty reducing the threat for russias nuclear weapon. So i am convinced based on my experience that we can do this. One of the reasons i asked senator tim kaine to be my running mate is that he also has a record of working across the aisle to get things done as a mayor, a governor, and a senator. So were going to make full use of the white houses power to convene. Were going to get everyone at the table. Not just republicans and democrats. But businesses and labor unions, academics, experts. But most importantly, americans like all of you i think there are a lot of great ideas in america, and i want you to have a say in your government, and that means weve got to get unaccountable money out of politics, overturn citizens united, and expand voting rights, not restrict them. I intend starting even before the election to bring together leaders from across our economy. From a lot of different places to talk about jobs and competitiveness. And i hope mark and john can join me, because we need the best ideas that are out there making a difference. We need to pull together. The bottom line is this. Im running for president to build an economy that works for everyone, not just those at the top. [ applause ] and based on what we know from the trump campaign, he wants america to work for him and his friends at the expense of everyone else. Hes offered no credible plans to address what working families are up against today. Nothing on Student Loans or the cost of prescription drugs. Nothing for farmers or struggling rural communities. Nothing to build a new future with clean energy and advanced agriculture. Nothing for communities of color in our cities to overcome the barriers of systemic racism. Nothing to create new opportunities for young people. Just a more extreme version of the failed theory of trickle down economics with his own addition of outlandish trumpian ideas that even republicans reject. As we heard him say at his convention, he may believe that he alone can fix our country. But clearly, he doesnt know the people of michigan. He doesnt see the businesses and the labor union, the local governments, the clergy coming together every single day to make things better. So yes, there is still a long road ahead. But michigan is on the rise. Everyone is contributing. Thats america at its best. So i hope you will stay active and engaged and working together to create jobs. And to strengthen your own communities. And i hope you will, work to get out the vote in november. Because if we are able to win, then i want you all to work with me to build the kind of progress, that america deserves to see. Were going to do this together. We are stronger together. Lets go out and build a future. Thank you, all god bless you. All righty. There was Hillary Clinton wrapping up a roughly onehour rapast to donald trump. John harwood, Steve Liesman, seema mody, larry kudlow all with us today for a quick wrapup of the clinton speech. John, you go first. She tried to make a contrast on mood and tone as well as on policy. She said michigan is on the rise and donald trump is painting a negative picture of america. Hes ranting and raving and im offering policy solutions. She hinted at one new thing that she two new things shes going to propose. One is the tax simplifications for Small Businesses. No details. Same with an expansion of the Child Tax Credit. Not childcare, but Child Tax Credit to benefit working families. She hit donald trump for what she called the trump loophole, meaning the 15 business rate that she says people like him can be taxed at by turning their labor income, or their ordinary income into business income for tax purposes. And she just went after him in a very determined way. John harwood, thank you. Steve liesman, one of the areas where you make whatever point you want, but one of the areas where i saw relative overlap was on trade. There is definitely that. The whole spectrum has moved whichever way you want to call it, left or all the way to the right on trade and its a pity because nobody stood up, except for perhaps myself for free trade. I want to make a political point. And i havent had a chance to fact check Hillary Clinton. What strikes me is it still sounds like a candidate running to consolidate her base. I have talked to businessman after businessman who is desperate to find a reason to vote for Hillary Clinton and cannot find it in this litany deluge of programs out there, when she talked about the private sector, she talks about it in concert with the government. Unleashing the private sector. Shes not talking about it in a way that centric republicans are ready to come on to. Rather than these two people who seem to be more about splitting them apart. Hillary clinton tried to emphasize the fact that shes a product of the middle class. What stood out to you . Look, i think Steve Liesman is alarmingly close to the truth. Alarmingly. Well talk about this for weeks and so forth. Ill just say this afternoon this was a class warfare speech. This was a punish success, punish corporations, punish the well todo, punish large Business People. Punish energy production. Theres no tax cuts. No reregulation. Im surprised, because you know what . She could do more pretty easily. There are people who are ready to cross that line in a hurry. This is why youve come alarmingly close to the correct analysis. If she came out with, for example, obamas Corporate Tax reform. There isnt anybody who doesnt think that number should come down. If shes come out with obamas 28 , with maybe not 100 expensing, but lets say 50 or 60 . Guys like me. Im not saying id be for her. But shed take a lot of my water. Somebody needs to tell hillary she hasnt got 80 of the bernie vote already. She has tremendous opportunities in the center among guys the Senate Republicans who ive dealt with my entire professional career. I will just say this was a blown opportunity because its more of the same of the primaries that youve talked about with bernie sanders. The primaries are over, now get serious about the economy. She didnt do it. All righty. Were going to leave it there. Weve got politics today. Oh, by the way. Record high stock prices here today. Well talk about that when we get back to the markets. And dan marino. Dan marino. Thats right. More on todays markets and dan marino, hall of fame quarterback, coming up on power lunch. Dont go away. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Hello, everyone. Im sue herera. Heres your cnbc news update for this hour. Donald trump speaking before a ho Home Builders convention, repeating his claim that president obama and Hillary Clinton are, in his words, the founders of isis. I call president obama and Hillary Clinton the founders of isis. Theyre the founders. In fact, i think well give Hillary Clinton the you know, if youre a sports team, most valuable player. Isis will hand her the most valuable player award. At least two people were killed and Dozens Injured after a natural gas explosion and ensuing fire at an apartment complex in maryland. Seven people are still missing. A red cross official says about 100 people have been displaced. Pope francis eating lunch with a group of Syrian Refugees who were brought to italy from the greek island of lesbos thanks to the popes interception. The pope brought toys and other gifts for the children, who gave them a selection of their drawings. It may be harder to find bottles of bubbly this year, and thats because its the worst champagne season since the 1980s. Thats according to the Wine Industry website decanter. Com. It blamed rot for the issue and says wine producers will have to dig into their reserves to make up for the shortage. Better stock up now. Thats the cnbc news update this hour. Cheers, guys. Back to you. Thankfully theres enough rose to go around this summer. Hopefully. The dow hitting record highs today. Energy the best performing sector. The oil market closing. Jackie deangelis has that. Closing prices for crude under 43. 5. This was big for crude oil, especially because weve been whacked around with these prices. The rally all on the headlines that the saudis say theyre willing to do what they can to rebalance the market. But its a little bit like lucy and the football traders saying we have seen this before, and then theres no result from it. It may be a move to job on the market here. It is something to watch. The saudis do have the power still to move the market. Also a little bit less in focus, a fire in louisiana at a motiva refinery. Some concern about supply. So watch that as well. Stocks rebounding today with a dow hitting a new intraday high. The dow is holding on to a tripledigit gain while the nasdaq and the s p 500 are up more than half a percent on the day. Oil, as jackie was just mentioning, rallying as well. So are large caps the place to be now, or should you look at some smaller names . Joining us to discuss, the chief Investment Officer at vimo bank, and jill kuniff. Jack, ill start with you. Stocks at record highs. Its those defensive sectors like telecomm and utilities leading the way. If youve missed the rally so far, is it time to pile into these crowded safety sectors, or is it time to look elsewhere . Yeah, i think theres opportunity to at least still play in this rally, but, you know, moving the sectors, moving to areas that, one, arent as fully valued, and two, havent fully participated. Mid caps would really be the place to do it. Its a way to get an asset class thats trading at a pricetosales ratio thats more in line with its historical average. Keep in mind, s p price to sales ratio has really only been bested by one period, and thats the 19992000 period, and we know how that ended. Mid caps concentrated in domestic economy are a better deal. What about you . There is this human tendency to put money into places that are already working. What are you recommending to clients, stick with large caps, or is it starting to look like its time to diversify . Well, we always believe its important to diversify. And while theres still opportunities in large cap, our focus right now is in the small to mid cap space. And valuations are a little bit stretched. But we still believe that for companies that focus on strong fundamentals, can grow in a slow growth environment. So thats our focus at edge, looking for those opportunities across sectors. And making sure that investors are not only diversified, but also active. So instead of an indexed approach, being more selective, finding those companies that can grow in a slow growth environment are critical in this kind of environment that were in today. Some interesting market perspective there. Well have to leave it. Thank you for joining us on power lunch. You can go to powerlunch. Cnbc. Com to see how jack and jill are playing central bank policy. Jack and jill went up the hill to fetch a pale of Interest Rate cuts. Up next, dan marino live on set. Well talk stocks, football, and pizza. You wont want to miss this. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Now businesses can get more out of their data. Whmade plastics that tmake them lighter . Rs the lubricants that improved fuel economy. Even technology to make engines more efficient. What company does all this . Exxonmobil, thats who. Were working on all these things to make cars better and use less fuel. Helping you save money and reduce emissions. And you thought we just made the gas. Energy lives here. You likely know our next guest, but hes also making his name in the business world. Has for a long time. Happy to have dan marino with us in studio. Hes a partner in anthonys cold fired pizza, which recently opened here. Has 58 locations around the country. Good to have you with us. Thanks. The last time you were on, and when we had anthony on, i promised i would go to anthonys coal fire pizza. Anthony came on in march or april, i hadnt been there yet. I have been there now. It is really, really good. Thank you. And what i said to anthony, what impressed me even more than the food, is the service. The people do a really good job. I think its just the atmosphere of the people, how they go about what they do, their love for the product. Youre an Equity Partner in this. It was a business that began in florida. Youve had other investments. Like all investors, some have gone well, some havent. What are the lessons between the ones that went well and the ones that havent . The lessons. I think picking good partners for one thing. Anthony, ive known him for 30 years. Hes been in this business and hes been a guy that you could learn to trust and see how hes worked. I think thats what it is. Picking good people. Relationships. People you trust. And being around. And also, having good products. Whatever the product is. Knowing it will work. And thats the one thing with the coal fire pizza. Its expanded. Like you said, weve got 58 opening down the street here. Its just been its been a pleasure kind of seeing it grow. Thats the thing. And the passion that everybody has for our product, for the restaurant. And for anthony and the job he has done. And it cooks in these coal fire ovens. Yeah, 800 degrees. In like four minutes. It is so fast. The wings, the pizza. We just had some of the wings here today. Yeah, theyre really good. One takeaway from this earnings season is higher menu items are pushing more americans to stay home and cook at home. Is that more of a risk that youre looking at in your pizza business . I dont think so. I think people, if they like your product, they like what you do, the service like you said, theyre going to go out. If youre doing the right thing and making good product, theyre going to come and eat your food. Thats whats been great about our coal fired pizza. Its simple. Like nothings frozen. Its all fresh. Thats the one thing anthony says. He says they buy it, they cook it, they sell it. Nothing ever frozen. I think people see that in the product. Youre a former nfl quarterback. Joe theismann is a friend of cnbc, comes on a lot. Im a redskins fan. Thats okay. Hes a big stock investor. You invest in stocks. Youve got to be feeling good with the market at record highs. What kind of stocks do you buy . You know what . I actually called my guy earlier today. We have a lot of health care. One that im really proud of, we got into regeneral and pharmaceuticals early. Had a lot of those. Buy good companies, and listen to my people that helped to advise me. The last time you were on, i pointed out that youre an Equity Partner in the pizza, on the other hand, youre in nutrisystem. Have you worked through that . Theres no therapy involved there. It does work. Nutrisystem works. And the pizza business works, too. They go hand in hand. I guess youve just got to understand that everything you have to have in portions. Portion control. So you can eat the pizza. We want you to eat as much pizza as possible, but also, get on nutrisystem any time you want. Ten years from now, dan marino, more focused on Retail Business or do you think stock investing becomes a bigger part of your portfolio . Ive always tried to be pretty balanced. I think Stock Investment is going to be there for me always, ten years from now. Youve got to see where it goes and where the market is and how its going to affect you personally as far as the income in the life. You like good wine. You have a winery now. Drew has one back. Were selling and making a good product there, too. Damon was a backup quarterback with me in miami, he played behind tom brady for a while, hes a graduate out there. Hes a husky . Hes a husky. Were good friends. He kind of runs the business. The preseason starts tonight. Who are the best young quarterbacks in the draft class or who are just getting going . Who do youlike . You know what . The two kids, goff and wentz. I watched film on them. They both have the potential to be franchise quarterbacks for a long time. They both look really good. Ryan tannahill i think has a bright future, hes a good player. People have been saying that for a while. Four years. Kayla wants to jump in. Wheres kayla . Hey, dan. Im in new york right now. I wish i were there on set with you guys. Im wondering if youll watch the nfl on twitter on thursday nights. On twitter . Yeah . This thursday night . No, they have a streaming deal with the nfl to carry the nfl games live. They paid a lot of money for it. And im wondering if thats something you would ever do. Or if youre a tv guy. Okay, so yeah, ill do it, but i dont plan on doing it. But ill try it if you say so. So lets look a little bit to the question of football coming back to los angeles. How do you think l. A. Will accept it . I think theyre excited about it. With the rams coming back out to l. A. You feel bad for people in that community because theyve been so supportive of it. But l. A. I think is the biggest market in the United States. They definitely should have a team. And i think everybody out there is going to be really excited. Im sure the people that are with the rams and working their organization are excited about going back to l. A. , no doubt. One trend that weve been watching is nfl teams accepting games outside of the u. S. , in england and in mexico. Is that a positive step for the nfl . I think theres no yeah, its positive to spread the game worldwide. I actually played against joe montana and the 49ers and dolphins the first game in london, back in i think it was 1989. And theyve been developing that market in europe. So its something that theyll continue to do. The dolphins played in london the last two years in a row. Were not playing this year. It was a great experience. Sold out games. Theyll continue to do that. Lets talk about moms, kids, concussions. Okay. Does the nfl have the right answers here on player safety . Is football threatened by the fact that so many parents, including in my household, are concerned about their kids getting injured . You know, they have every right to be concerned. I feel pretty good about where im at right now. They talk about it. And theyre doing everything they can to make it a safer game for guys in the nfl. As far as kids are concerned, moms and dads have every right to look at their kid and say there could be you know, worried it right and see how to tackle, its not necessarily safe as time goes on. You can get injured. Always going to be there. But if you do it right the way, i think its a great game and kids will be fine. Do better hell mites make people safer or lead with the head . Researching that right now. You know . Looking at new helmets, new ways to make the game safer. Thats why they changed the rules. They changed the rules. You see how the fines are huge now in the nfl if youre leading with your head and hitting with your helmet and using it as a weapon. Right. So theyre trying to do the best they can as far as a league is concerned. Dan, when you work through the therapy of the pizza versus new t nutrisystems, come on back. Thank you for having here. We have a grand opening. Come on down. Sounds good. Kayla . Coming up, next, breaking out the alltime high playbook. Should you be making a change on big cap stocks . Across all your devices. The markets hot. Sync your platform on any device with thinkorswim. Only at td ameritrade. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Amazon and google parent alphabet hitting alltime highs today. Should investors stick with these hot tech titans . Lets bring in the trading nation team. Erin gibbs and brian kelly. Im curious what you think about the stocks and their path from here, because there seems to have been a retoegs into old tech versus new tech. Actually, i like both of the stocks where theyre at. Both trading at about 15 below analyst target prices and clearly the street thinks theres potential upside. Both of them have impressive growth. Amazon looking at 60 longterm growth and google, alphabet, with 16. I would go with google over amazon. More from a valuation. Theyre trading a little more attractive valuations and from the target. I feel like theres a safer bet on the upside of google versus your amazon. What about you, brian . Valuations some say are stretched here. Is there a better value in the market . I think there is. Right . Not that i dislike amazon or google. What i would do is probably just have a trailing stop on that. But these are at alltime highs, new highs so whats happened in the market, you have seen the rotation effect going on over the last lets call it 12 to 18 months. Sector rotation. Im looking to the energy and financials at this point of time. Those seem to me like the laggard. Look like theyre starting to break out and they have some dividends to them, as well. With oil up 4 today, i think a lot of people follow that lead. Brian, erin, thanks to both of you. For more head to tradingnations. Cnbc. Com. Announcer theyll test you. Try to break your will. But however loud the loudness gets. However many cheese puffs may fly. Youre the driver. The one in control. Stand firm. Just wait. [click] and move only when you hear the click that says theyre buckled in for the drive. Never give up till they buckle up. Check please. All right. Time to get the check and get the heck out of here. What is the one thing youre looking at for tomorrow . Jcpenney earnings tomorrow. Can they and nordnordstroms af the bell keep the bull quarter intact . Lots of stuff in retail. Macys this morning with big news there and jcpenney on the comeback trail according to many. Seema . Unprecedented rally in bonds. Yields continuing to hit fresh lows in the european market. How low can they go . Especially as investors bet on further central bank stimulus. Its been great having you here and there. Wish you were here for dan marino. You told me that you loved his work in ace ventura. Talking about new england clam chowder. Red or white . What did he say . I didnt ask him. New england is white. He said it was his best work ever and agreed with you. Ace ventura. Glad hes found for those that get it. Coming up, on this record setting day for equities, with record highs, intraday, for several of the major markets. Well see whether they finish at those levels or not. Yeah. Thats it. Thanks. Closing bell right now. And this is the closing bell. Welcome. Im sara eisen in for kelly evans at the New York Stock Exchange today. Happy Throwback Thursday or something. It is. It is. Yes. Im bill griffeth. A record day. We have a record day for stocks. The dow, the s p both hitting record highs intraday. Getting a boost from positive retail earnings this morning and then after the bell tonight, we are going to get a read on high end when nordstrom reports, as well. Energy also a big part of the story powering higher today