Transcripts For CNBC Power Lunch 20170706

Right now. Thanks a lot of red on the screen heres the question. Is a summer stock swoon starting were down across the board. The once red hot nasdaq at its lowest level since midmay stocks bringing us down on tesla. Worst performer on the nasdaq 100. Well tell you why huge downgrade for ge. Why one analyst urges you to sell that stock and answers our question of what is the biggest mistake ge has made. Thanks. Im michelle carusocabrera. Heres what else is happening. Microsoft officially announce being its cutting 3,000 jobs. Liberty media buying the rest of hsn. 2 billion deal brings the nations two best known Home Shopping outlets, qvc and Home Shopping network and despite a soft first half for auto sales the outlook remains strong welcome im Tyler Mathison we begin with the president s big overseas trip a very consequential one. He spoke early this morning point land and a short time ago landed in germany and his first face to face meeting with russias Vladimir Putin. Eamon javers is live in hamburg with the very latest reporter that meeting with Vladimir Putin will come tomorrow here in hamburg but today President Trump has landed in air force one and just met with Angela Merkel, the chancellor here in germany that meeting so much anticipation for it given the fact that there was this little diplomatic snafu between two leaders in washington, d. C. Where Angela Merkel went in for a hand shake, donald trump didnt see it or acknowledge it, didnt look at her today we got a hand shake between the two leaders. Take a look at some pictures that just came in, the two leaders meeting here in hamburg. We got the hand shake, a direct look between two leaders thats also being commented on here in the press. Earlier today we saw this fascinating moment in warsaw where the president was with the president of poland. There a much warmer reception from the leader in poland and also from crowds in the streets there. The president making comments about lng, Energy Exchanges between two countries, military exchanges between two countries. He praised the fact that the president of poland is a tough negotiator heres what he said. First shipment of liquified gas arrived in poland last month and more is coming hes a tough negotiator. The president joking key do an lng deal in a short period of time, looking for staffers to draw up some contracts onthespot. We can enter a contract for lng within the next 15 minutes, do you have anybody available to negotiate. It would take about 15 minutes were becoming a great exporter of energy. Very soon well be a very great exporter of energy and weve taken a lot of unnecessary regulations out of our process and were doing things that we havent been able to do for a long time. Now a lot of reporters here in germany were after an opportunity to get whats called a pool spread between Angela Merkel and donald trump at the end of their meeting, an opportunity to go in with cameras and see the meeting. The german side turned down that request. That possibly because theres so many flash points between these two leaders when it comes to immigration, climate, trade. All of those things Angela Merkel has a political incentive to embrace donald trump and point out her differences with him at the same time shes welcoming him here to her country. All those diplomatic sensitivities may be in play to not allow pictures at the end of that meeting where we saw pictures at the top of that meeting earlier today. Back to you. In Europe Energy is power russia holds much of the energy. Which means russia has much of the power. It is responsible for 30 of europes gas needs a full 13 nations rely on russia for 75 of their gas germany takes in the most by far. But even poland where the president spoke today and talked about Liquified Natural Gas is reliant on russian gas every year much of that gas accident to europe through a massive pipeline which snakes across russia through the ukraine into Continental Europe controlling ukraine is important. But russia and germany want to change that. They are currently working on a Second Generation pipeline bringing huge volumes of gas from a port in Western North part of russiadown through the baltic sea and into northern germany. Its called nord stream two. It would double the capacity of the current pipeline but also bring in more russian dominance of gas and energy which means russia would wield own more power over russia well talk about that and more of President Trumps energy plan and his g20 challenges lets welcome in executive Vice President of the German Marshal Fund he was assistant secretary of defense under president obama. Welcome. Lets talk about energy. First lets start with the president s speech in poland this morning which took on a bit of an apo ok calyptic tone. Do you see it that way what did you make of the speech overall as a walk up to his ameliorating tomorrow with mr. Putin . Well, in many instances the speech was a tale of two speeches the president said some things many europeans were hoping to hear about u. S. Commitment to nato, u. S. Commitment to a strong defense, u. S. Commitment to our mutual security that was all good. But the president also cast a pretty dark tone in much of the speech along the lines of the american carnage part of his inaugural address talking about the civilization struggle were in, revealing perhaps more revealing than the speech of what he said before he was defensive about the russian meddling in the election, took some shots at the u. S. Press influencing nbc and that could have been a defensive posture. Lets talk about two specific items there. One is did he make explicit, which he did not do back when he met with european leaders in may or nato leaders in may, i should say that the United States would view an attack on any of the nato allies as an attack on all and would respond. Thats question one. Did doe that he did. He referenced article 5 of the nato charter which is that the mutual defense clause of our commitment to nato and to russia he went in a couple of directions there one as you pointed out he was a little equestion vocal whether russia and russia alone was responsible for election meddling i want you to talk about that and what you think that tees up tomorrow but he was explicit was he not in saying that russian interference and mischief in other parts of the world including the ukraine, presumably and also its support of rogue regimes in syria and iran needed to be adressed again, the tough language on russia was what he read in a speech that was clearly written noirm. It was important that he said what was said. Many europeans were hoping to hear those words he had not said that it would have been big news that was good. But on the other hand what he was asked in the press conference and speaking off the top of his head he suggested a lit more hesitation on pointing the finger at russia when it came to meddling in our election lets go back in time for a little bit and then look to today. Considering what many thought President Trump would do when it comes to russia versus where we are today, the administration has been far tougher on them than most people expected, hasnt it . Again, it depends at what youre lacking at. When you look at our defense posture, general mattis, secretary mattis has articulateed a policy thats in continue without the Previous Administration there was a prediction sanctions would be gone. Not so soon people were unsure thats why were looking at this meeting tomorrow we know president putin will have offered certain things to President Trump whether its cooperation in syria against isis or a discussion about ukraine. The question is what price will he ask in return President Trump has talked about having a Good Relationship with russia and something we should desire thats sensible and easy to have a Good Relationship with russia, just do everything putin wants you to do. What is putin going offer. What will he ask for in return and what does President Trump find tempting enough to consider well find out. Thank you. Down day for stocks. How much stocks playing into it. Dominic chu is looking into it whether stocks slid as a whole or etfs have more of a sway you can argue with the popularity of fefs more investors are going that route and therefore they have more influence over the overall markets. Bank of america, Merrill Lynch noted when it comes to Fund Management the number of dollars being managed has doubled since 2009 it now represents 37 of all u. S. Based equity tied funds thats big only about 19 from 2009 you take a look at how much this index investing mentality has taken hold the s p 500s total value as a market cap is now almost 7 controlled by just vanguard one of the biggest etf and index investing companies out there. Back in 2010 it was about half that amount. Huge move into passive investing. Among southeast stocks that took most their float, available shares for trading are now owned by etfs. They point out 23 stocks in the s p 500 have at least 20 of their total floats in etfs le get and platt, peoples United Airlines bank, newmont, cincinnati insurance kroup as we talk about the implication the idea here is with all of these etfs there could be unintended consequences with regard to market liquidity and volatility that could play in if f etfs continue. A lot of people believe the herd mentality when it comes to etfs lets bring in two strategists guys, good to have you here. Is it a coincidence that on this day where we see Interest Rates rising again that we see some of the highest multiple stocks particularly the tech stocks selling off . Do those two things go handinhand what do you think . Well, obviously, theres a correlation between the two, but im still not believing this higher Interest Rate argument because quite frankly were back to where we were a month ago in terms of the ten year and 30 year we still have seven European Countries with a negative two year yield and japan with a negative two year yield. On a long term basis we have a long ways to go before it has a Significant Impact how about you i think Interest Rates when they rise remind you that discount rates when it comes to equities are important and paying too much is not a good thing from a longer point standpoint very often when Interest Rates rise or something happens in the market to remind people they need take a look at their portfolio they tend to shy away when some of their Portfolio Holdings have risen much too high what do you believe right now . So presumably its safer to buy southeast stocks how about you its slow rise of rates not strong inflationary pressures. Steve, can i go back to the previous piece on etfs quickly isnt there a risk, forget about the herd mentality that bad company with bad management and bad models are seeing their stocks go up because if youre a company thats misma nagged in a bad industry your stock is going to go up does that frustrate you . Right well, it is frustrating. Think about it if all the money is pouring in to a passive index and your portfolio deviate from that index, mathematically youll be behind the eight ball. Yes. Certainly theres an impact there that is maybe not the best economically for the market but at the end of the day, given the expense slice of these passive investments i think it will be a while before we see this trend end. But also the child an eight year bull market. Put money in the s p it goes up every year at some point when theres a bull market it will put a wrinkle in the game plan the etfization, a tricky word to say, is that when there are stocks outperforming, we have talked about this market being a narrowly led market in that the big cap tech stocks have been the market leaders decidedly so far this year. You say the money pouring into big etfs could have pushed those stocks higher. So when youre taking a look at equity risk premium and seeing Interest Rates go higher thats where the unwind is the hardest isnt it bruce is that justified in this instance tonically when things turn down thats right. In the meantime, those corrective pull backs in the market often temper that and its very common for fairly few issues to lead the market at any one point in time and then you rotate to soelgs sometimes off the correction, sometimes merely rotating from one group to another is this the time for rotation in your view ortoo early given where Interest Rates are and even though weve seen a rise in the past week in the broad context of things, they are still low . Theres typically an ongoing rotation thats fairly frequent from group to group. I think its a little bit early to give up on the tech stocks entirely from that standpoint. But i think having some rotation is probably a sign of health within the market and it means that everything keeps advancing and keeps the breadth at levels thats reassuring. Thank you, gentlemen. Coming up game changer or gimmick . A giant vending machine that dispenses cars meet the company thats selling used cars in a different way talk about doing things differently. Would you let total strangers manage 50,000 of your hard earned money one man is doing just that gealng fli after jp morgan lowering its price the trend a. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Ge the biggest loser on the dow down by 3. 2 jp morgan cutting its estimates on stock joining us now, the analyst who made this call great to have you with us. It almost sounds like you think there will be a onetwo punch for investors on General Electric where there cube kitchen sink moment for the stock. Then whats broke isnt that easy to fix. Yeah. Absolutely i think the new ceo announcement is a positive because i think hell come that with a clean sheet of paper but, now, last 16 years, you know, theres been a lot of investment perhaps in places where there shouldnt have been and so to fix that kind of structural overcapacity and kind aflac of earns growth in the industry they compete in, its going to take a lot of time so what we think will happen the 2 number thats the anchor for street over the last two years, as they move towards a gap estimate which more fairly reflects the dollar of free crash flow that they generate currently that reset is not in the stock at 27 and we see a price target of 22 one of the frustrations for many investors is the perception General Electric made all sorts of deals at terrible times whether exiting the financial business at the wrong time or getting into the oil and gas business at the wrong time how do they undo that or do they to undo that will take resetting expectations for investors and then second of all given they are currently paying out almost 100 of their dividend in their free cash flow, you know, theres not a lot of extra cash for them to kind of do things in a creative way. Site will take i believe a heavy amount of cash restructuring thats not in our numbers. We kind of estimate at a high level somewhere in the 5 billion range over the next several years to kind of adjust capacity again, thats kind of the point of the note. Theres missouriy way out of this a lot of blocking and tackling and ultimately a number thats lower and not growing as fast. Do they cut their dividends whats going to happen i do not think they cut the dividend but they cut the buy back, which is diluted how far along are they in that buy back . About 7 billion and a five cent cut to our estimate theres no extra cash accruing to be used for creative purpose. How long does this take place. You have a 22 price target. Its now 26. How long does this transformation take. I think they are currently discussing it. We wont hear anything on the Second Quarter youll get something somewhere around september maybe october as late as november when you hear the land for the next several years from the new ceo thank you stephen tusa a big warning about the American Housing market from one top fed head what he said that atught everybodys attention ths coming up youre watching power lunch. Were back right after this. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. 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. Welcome back some big news in the Performance Art space to tell you about. Thats right. Circus de sovereign leil entered in a deal with Blue Man Group. They are acquired by circus de sovereign leil. They will diversify beyond circus acts. In doing so they will find some help from tpg, the 73 billion equity firm that took a majority stake two years ago. At the time reports said the vecht value at 1. 5 billion. Tpg has been making a significant bet in recent years on traditional entertainment with stakes in Creative Arts agencies their investing group cofounded a company that produced movies prior to the acquisition Blue Man Group was owned by two of its cofounders as well as the gf private equity fun. The concept for Blue Man Group began in the late 80s if this is to diversify away from the circus arts what the Blue Man Group in terms of its market differentiation what do you call them. They are not circus senators. They do a lot with music. They record some all bups. They are big into the music scene. A different type of audience according to people close to the deal i asked would we see a blue man theme circus show. Have you been ive been. Its interactive a part where you swing if youre picked from the audience yeah. I guess they are performers. Performance art a lot of toilet people. Throwing things splashing. Messy. Thats your house on a friday night. Thank you coming up on the closing bell an interview with daniel lamar at 4 00 p. M. Eastern time. Most vending machines dispense so darks candy. This one dispenses porsche, lo athe mpws a okt coany that look at the way used cars are bought and sold [brother] any last words . [boy] karma, danny. Karma [vo] progress is seizing the moment. Your summer moment awaits you, now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Hi, everybody. Im sue herrera. Vice president mike pence heading up the newly reestablished National Space council is touring the Kennedy Space center today hell address nasa employees 19 states are suing the department of education and secretary betsy devos. They accuse the department violating federal law. If you run more than 50 miles at one time you are going to have some aches and pains but now some researchers say athletes who compete in ultramarathons should shy away from using motrin. These runners could be at increased risk of liver injury if they use that pain killer these little babies are back where they belong. The 7weekold siberian lynx cubs went missing. They were returned by two women. Unclear if any charges will be filed. There they are you are up to date ill send it back to you back to you. Quick check on the markets. Were off the session loss Dow Jones Industrials average right now is, s p is lower by 11 points, dow is lower by 70 and snads off by 30 points off the loss declines between third and half a percent. Lets get to bob pisani. Higher yields producing winners and losers banks had great momentum for the last week and a half jpmorgan on the upside regional banks up. Kbe, at the high evident level since march. Theres your etf for the bank. On the ascent. Interest rates the losers. They are having a tougher time your reits and telecom and Home Construction to the down side. Heavy Volume Exchange traded fund high yield etf and the other one thats in the Investment Grade Corporate Bond group also getting very heavy volume today. The retail, another down day Oreilly Automotive stock down, continuing fallout from the amazon story here. This has been going on for several weeks now. Want to point out any do it yourself market has been weak. Home depot is sitting right near the lowest levels since going back to march. Even thats not working right now. Guys, back to you. Financials finishing the first half strongly. The xlf, etf attract bank stocks super. While the big banks boosted dividends after passing the stress test our next guest says theres a reason not to love the bank stocks. Jason, welcome banks are up today kbe, highest level since march but you have pulled back on your Bank Holdings. Why . Were concerned really that banks are going to follow the yield curve and thats what were seeing with banks moving higher as bonds curve deepen but we dont think this is sustainable. We think the yield curve will stabilize. With bond yields is around inflation, inflation has been persistently low so many factors coming together beginning with wireless carriers and the pharmaceutical sector drug prices are being held back lower inflation or less robust world inflation means the fed doesnt have the ability to raise rates lifting the yield curve. Thats right. Not only does it put pressure on the long term bonds making the yelled curve flat but it will be hard for the fed if inflation continues to be low. Or raise rates at the end of the year as forecast if they dont raise rates Bank Holdings will be disappointing they are buying less stock, right . They are buying less of whats out on the long end of the curve. Just the mere notion that mario draghi might stop buying long term bonds has pushed german yields up. Regardless of whats happening with inflation and everybody has seen those low Inflation Numbers yields started to rise because of the perception that lack of Federal Reserve and Central Bank Intervention will happen in the future so doesnt that worry you . The market certainly is adjusting to whats happening in europe with the pros be aspect of reduced kiwi. The fed will begin on this process of Balance Sheet fed has been very slow and deliberative and fed president pat parker said the process would be like watching paint dry. I take him at his word so much Global Institutional demand that we think that the fed will be able to slowly step back from the markets. Whats most important a yield curve or decent Economic Growth because i would think that bank bulls would argue that, you know, a yield curve of where it is now is okay with a decent back drop of Economic Growth and you layer on top of that about 93 billion in buy back that was green light by the fed last week pup have a recipe for bank stocks to do okay at least we think the yield curve is most important but Economic Growth matters because it translates into loan growth. So loan growth has been popping. As we look ahead it may slow down again the first reason its important is look what happened with crude oil prices declining and what that happens with the Energy Industrial sector. Many banks are reluctant to end. Theres real estate thats pulling back regulators telling them to be careful. And Mortgage Rates are higher than they were a year ago and squelched demand the head of the office of government ethics is stepping down six months before his term is slated to end after repeatedly clashing with the Trump Administration in his letter of Resignation Letter Walter Schwab said it was a great honor and privilege. Hell be heading to a none profit to head its Ethics Program. In an interview he said he was not pressured by the administration to resign he was not pushed out. He believed he reached the limit of his usefulness. He had done all he could do and believes that quote they needed to strengthen the Ethics Program overall. So, again, Walter Schwab announcing his resignation in a letter just a few minutes ago. From banks to autos and this is pretty cool when you want to buy a used car forget about going to a dealer how about going to a giants vend magazine shin . For cars no were not kidding phil lebeau joining us from chicago. Were talk about carvana. They are trying to disrupt what happens to the used vehicle industry in terms of going to a dealership as many people imagine. Carvana is about buying and selling used cars. Can you have it delivered to your house or they can pick it up from you or you could go to one of the five car vend magazine shins that carvana has around the United States and these vending machines not only be essentially where you get your vehicle delivered to you but also an opportunity for them to market what the company is all about. Since its ipo, carvana had a nice move higher take a look at shares since may 1st it moved up substantially. Can carvana truly disrupt the Automotive Industry in term of the dealership model, in particular the used dealership model. Remember we talk about new vehicles and their sales keep in mind that used vehicle sales are far greater about 41, 42 million used vehicles will be sold and a number of established new automobile chains are looking to build their own used vehicle dealerships, in other words used only. Would you go there if you want to buy a three year vehicle. Auto nation is one of those. Opening its used only dealership next month clearly carvana having a nice move over the last month or two. Interesting to see whats happening with carvana lost money in the last quarter that it reported earnings. Lets see how they can develop the business going from here phil, thank you here to explain more how carvana works is the ceos ceo andy garcia this is fascinating. Most people who want to sell a car dont want to list their car on craigslist and have a stranger come over to their house. How do you deal with whats going on, macro trends in the used car industry in terps of der clieng vehicle prices. The declines are pretty steep and pretty fast. You actually hold on to that inventory very long . What is your exposure in terms of those assets depreciated. The first thing i would start is where you started for us were growing at tripledigit rates the major part of the story is what we do over the nextsevera years. The macro factors wont play in too heavily because were growing so fast anything macro is small compared to what were doing daytoday we do hold inventory the average retailer holds inventory for 45 days. The exposure straightforward some of the post dire forecasts for deappreciatidepreciation isr day. Ends up a small factor when your carry time short we looked at pictures of the car vending machines how many do you have now how many do you expect youll have in three years. How much do those things cost to build . How easy is to it get the permitting to build them sure. So let me try to put that in context. First we want to give customers great experience in buying cars. We said lets look at our dealerships. If we can address those expenses we can give our customers simpler expenses a lot is labor, building out the website thats fully transactional. That allow us to address those costs. They spend money on physical dealership i would like to get your answer to my question and that is how many of shes anesthetist vending machines do you have, how many due expect to have and how much they do cost you and how easy is it to get the permits. Five today weve added four over the last 12 months. We expect to continue to build them out cost of them ranges it depends on the cost of the land, but generally they are about 20 as expensive as a big box dealership and then we can move significant more volume out of each of those vending machines the cost per sale is very low. If im in the market for a used car, why would i use carvana versus carmax. To me you look like a company that sells cars online yep fair i think the reason would be you go to a website. We have 7,000 cars you can pick from its growing fairly quickly. Go through the entire purchase process in five to ten minutes getting approved for financing trade in value for you car do you make it easier for me to sell my current car one of the appeals of going a dealership is i drive one thing in, boom its gone when i drive Something Else out. How easy do you make that . Thats often hard part of the equation for people. I dont want to deal with craigslist or people calling me in the middle of the day to see my car so i think the boom is gone if you go to a dealership takes four hours ours can take tone 15 minutes. Then we deliver the car. If youre selling the car we pick it up and drive it away do you get more money from a tradein towards a new car or another car or with a check because thats the frustrating thing is, you know, dealers will give you more value if you buy a car rather than cutting you a check. Where do you guys come in . Its the same price regardless its important to us as a fwroond be straightforward and transparent. If youre looking for cash well give you a check same value . Same value. You are not expected to buy a car. I can give you my car and walk away your choice. Any haggling or negotiation theres not prices are fixed Interest Rates are fixed if a customer wants a warranty they toggle a switch up and down trade in value is fixed. We make activity simple. Try to put our best foot forward and try to make it painless and fun. Vending machine cool thanks do they give you a coke as well you know what these Car Companies do they trade in your car ill cut you a check for 20,000 but if you beltway new car your car is worth 22,000. Why amazons plan to acquire whole foods isnt a food story could change the landscape for real estate. Well explain how and why ahead. But first to Rick Santelli at the cme for todays bond report. Rick well, tyler, its pretty universal. Everybody is watching Interest Rates move higher. They are not doing i want in a break your neck fashion really but in the conefficient of the low volatility and ranges that weve had over the last nine months its pretty aggressive. You see it on the two day chart. Open it to may 1st see the high around 10th of may. An area you want to Pay Attention to remember you settled at 244. Yield curve everybody has an opinion in what it means see how much it is steep with rate increase and finally this is a biggie. Its not the narrowest its been since november buhns are in control Something Interesting going on with tesla shares. Dont touch that dial. Power lunch will return in two minutes. And the wolf huffed and puffed. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Around 80 . We have someone coming on in a few minutes. He just raised his price on tesla yesterday and thatll be interesting perspective on a day when tesla hits the market don chu, thank you. We take it up with beijing. A fire tech company, beigene, outside of china to sell genes terms of the deal is shockingly good for beigene it is acquiring chinas portfolios to sell genes product. The company does sound like a company of beigene and selling genes. Exactly what it is chemical financial, they dont make chemicals a and they are not financial. Dad, is t avidson is the lar. Loan balances are up 10 d continue to take market shares from others and analysts like the 16 times earnings. Next stop, imax from mkm on the stock as the stocks hitting a four year low. The stock is over sold trending average of 10 times lower. Mkm is going to go ahead and slash it by 18 for this year. It wont include the 20 million. A lot of imax and not a lot o f hits netflix why go to the movie theaters, we can stay home. Your at home group. At first i thought was excited home remember them . No. Like 1999, no no this is a texas based furniture retailer, could not be more opposite. This stock, you will want to get the ceo on operational performances have been impressive. Analysts say yes, the stocks have been hot and not cheap. This is the early stage gross story justifying the evaluations of a 28 target. So just under 10 of 61 in one year, they sell furniture. At home at a store, the Furniture Store is for your home funny hes still funny, michelle hes so funny, melissa. I really am coming up he insisted deciding tinining the fate of h0 portfolios how is that working out for you . Dont baby crying slow jazz music fly me to the moon and let me play move. bell ring your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Would you give 50,000 buck to a bunch of random people on the internet and let them by whatever they wanted of course not thats what your next guest is doing. As a social and investing experiment, mike robert puts 50,000 of his own money in the stock market but hes letting strangers vote on what stocks to buy and sell live on twitch and mike is joining us now welcome to cnbc. Ru a computer engineyou are a c, you are not insane, are you . Thank you for having me yeah, i am not insane it is just sort of the experience a, why do this and what prompted this . B, what has been the Biggest Surprise to you so far or just about 37 days in um, yeah, so i did a lot of research sort of when i had this idea and i just found that nobody had ever done Something Like this before you know i kind of wanted to be the first person to do it. I thout it was a good idea so far, i am mostly surprised boo i the results from the media. I expected to be this corky little thing on the internet that people find about but yeah, just been contacted by do i understand correctly, how do you es it work you have how many people voting on what to do what . Anyone can vote you can go onto the twitch channel and anyone can vote. Usually see a few hundreds people voting a day. What are they voting on you choose to vote either buy or sell any stocks that you want and i count up the votes and executed the top voting tree how are they doing . I guess we always ask, a monkey throwing a dart, would it be better than an individual money manager, is the crowd better than individual money manager . Well, we are beating the nasdaq at the moment but probably because the nasdaq is so far down. I think theyre down of 1 over the past 30 days we are about breaking even we are beating them. It looks like you are up about 100 bucks on 50,000, is that right . Yes, last time i looked is about maybe 100 or 200 profit on the whole thing just about broken even, i guess. Whats going to happen when you wrap up the contest, whos going to get the money i plan on leaving it. If it holds below 25,000 in value, it will be forced to be shut down of regulations other than that, yeah, just leave it we like the pacman Style Technology screen there. Thank you very much for joining us, good luck with your experiment, well have to check in good luck with your crops tesla shares, wondering if they are getting some nibbles there. Should you stay clear or get in . Well talk with one analyst whos a big time backullisbulli. The second hour of power lunch, coming up. You can take a look at your screen on two live pictures right now on the streets of hamburg in Germany Police a protesters throwing bottle these are anarchists once again, we see protesters clashing with police we are looking to get aimed on protesters protesting globalization to your point. We know the world has gotten, maybe not smaller but certainly there is more of a retreat inside their own borders i wonder if this is a Different Group or the same group who just tweaked for a different reason, tyler . Aimen is a few blocks away and able to tell us what he sees on the ground there. Protesting against globalization and there is a retweet that you would think happier at the moment and pleased of whats going on in the world. Of course, this is happening after President Trump met with Angela Merkel for about an hour of g20 summit there is the word of the year, can we zoom in angry. People are just angry. I dont think we have control of this camera this is a live feed from roueuts of the associated press. I think you are right. Angry is just the word uhhuh. The feeling to it this is not new. I think there are also a feeling, guys, that there is too much power and there countries g together and there is a feeling that i would imagine based on the science that we see over the years, dont do this and you are ganging up on the world. One of the key points of what was hammering and what was noticed and when the planning happened, was the particular logistic logistics of the set up of g7 summit other meetings, they set the perimeters very far, far way thats not whats happening here there were reports that police are seizing various weapons and things in advance for fears of Something Like this. I dont remember whether it is a g20 meeting. I know many remembering the riots and seattle. I dont remember it was a g20 yeah. And the hotels were locked down then. Yeah. We want to check in on the markets. Where he wa 2017 is the level right now we are off the session lows by about four points. It is worth noting that all s p 500. German police seize nood knis and baseball bats. They are calling this antic anticapitalist riots. Many of the protesters are using iphones. All right, the irony is not lost you got the point protesters is kind of a culture, too theyre called welcome to hell. There is official names of the protest. There were different protests where people dressed up as zombies. This next story, one of americas hottest company is under fire today tesla is losing more than 5 of its value of the less Safety Report of their stocks, their market is down 20 from its most recent highs joining us more on the tesla, ne news, phil lebeau. It is highly respected within the autoindustry for doing these tests. It is the drivers side hitting the poll and how did the dummy inside reacted model s is not a top safety pick among the six large sedans that were tested. It does not an acceptable rating in this particular crash theyre not calling it an unsafe vehicle. I did not do as well as it could have done and the seat belt could have done a better job in protecting the crash test dummy. The most objective, independent testing is currently done by the u. S. Government which found the model, s and model x to be the two cars with the lowest probability of injuries of any cars that it has ever tested, making them the safest cars in history. Some people are saying wait a second, how can you be the safest if you only got the acceptable rating from the iihs. Last quarter, they sold 12,000 of these model s and incredible popular. We talked about that for some time i think there are other safer choices when it comes to large sedans like the model s. I am not calling it unsafe, there are other choices and we talked about this in terms of the share price today down more than not more than 20 , officially in bare market territory and under pressure today. Massive protests is breaking out ahead of the g7 summit in h h hamburg. What do you see reporter we have been seeing images coming through. We are in the secured zone where the media hotel is, we can see some security helicopters over head monitoring the situation. Earlier we saw enormous numbers of police being deployed tlo throughout the city. They had armor personnel carried and giant bulldozers front to them and all of those assets deploying throughout the city. Last night there was a relatively large protest here where i am standing about anticapitalist protesters here march ma ing in the streets we are having trouble with his mic right there, well let you get it fixed you are a couple of blocks away clarifying from these images you can see we have seen some of that action as well. Perhaps on the right of use of plastic bags at this point lets get back to the markets here tesla, shares are in bear market territory the price of 430 bucks from 38. Rob, it is great to have you with us. Thanks for having me. I wonder how you get to 430 i am assuming this a 12month price target yes you kept a lot of your estimates for the auout years on change. Why the increase foolishness and the price . Simply because it is all about model three and they confirm it is going to start production this month. Thats a milestone that three or six months ago that i did not think a lot of people will hit the Event Production to me was worth raising the price target my evaluation, you have to look forward to justify evaluations i value tesla numbers where i think eps can grow to 20 bucks and discount it today. It is july 2017 right now and you are valuing tesla 12 months based on 2020. Are you giving themmi one big jie giant benefit of the doubt there in execution you have to invest in the 2018 and 2019 type numbers the company is putting up a massive amount the value on todays number does not make a heck of a lot if they built it, theyll be bought right the bet is that exactly, people will buy the cars and so you know the last chapter looks like they had 400,000 of the model three. Their model three production will be soaked up until mid 2019, just based on todays order. Further to melissas point of the distance which you have to look in order for what you believe to come true is Interest Rates and rising Interest Rates and we see any stops thats got a high multiples where their earnings are far out in the future when Interest Rates rise those stocks will pull back. Your calculation as an investor are completely different the higher Interest Rates go how nervous are you that we are going to start to see Interest Rates rise thats out of your control and ultimately hurts the case where we are investing any stocks of the multiples that tesla has higher Interest Rates can work against in any of the all stocks or virtually all stocks this is relatively special case where you got a company as i said whos putting in the investment now for cars planning to make in the fouuture. I think purely looking on todays numbers and hey, they are losing money, would not make a lot of sense with that said, i think the numbers, model three is going to start in production and well see the numbers get a lot better rapidly over the next eight or nine or ten quarters i think that we got a car so the model three is going to launch this year. I am looking at 16,000 unit. Next year, they can produce 250,000 of them. This is a stock that can rocket higher or have a downdraft which we are seeing right now. Can you tell me this is the floor and this is what the company is actually worth today . What would that number be frankly of evaluations of any stocks tesla is a volatile stock because today earnings the stocks and trade, i cann any indication of finite demand yes i love the car by the way is there any indication that it is a fad for a couple of thousand people and thats it. That does go to the ultimate point which is the question longterm is, is there demand for hundreds of thousands and millions of electric cars. Yes or no. If you believe there is then tesla is in good shape and i think theyre several years ahead of competition if it turns out and the world does not want electric cars. Tesla is not a good stuff. I think thats the ultimate question, i believe i think people generally want electric cars and teslas several years ahead of the pact. Rob, thanks appreciate it. President trump is stopping ahead of the gsummit. After north koreas latest missile test we must confront the threat from north korea it is a threat and well confront it very strongly. The president and i pulling all nations to confront this global threat and publicly demonstrate to north korea that there are consequences for their very, very bad behavior. This comes up after yesterdays United Nation where nikki haley made this comment. The United States is prepared to use full range of our capabilities to defend ourselves and allies one of our capabilities lies with our military forces well use them if we must. We prefer not to have to go in that direction joining us now, doug, good to have you here, you were just in pyongyang three weeks ago. What do you make of comments from nikki haley and the preside president , doug bandow the problem is from the north koreas standpoint, the more threats you make for them, you will have stronger missi the question is where does the administration go from here . Thats the problem that the president is facing. What about china . Everybody points their fingers to china and that they need to do more. What can the u. S. Do to get china to do more china does not have to do more just because we told them to do so i mean, we have to engage and china is going to do this only if we convince them of their interest, it is going to cost them before we get to Troop Deployment or so forth, is it likely that the president will tie u. S. Trade with china with chinas performance and putting pressure oconn north korea and maybe affecting changes there and second, should we be talking the north korea. This is a security issue for china. You imagine somebody coming into the u. S. Say well give you economic benefits and the u. S. Response, wait a minute, this is a vital interest to us you probably wont convince them right now we are getting nothing out of north korea theyre moving ahead and dont care what we think we need to talk to them. This is a real problem we have no good answers but the past has not worked so at least we need to put up a channel of communication. Good to have you on massive protests breaking out of germany ahead of the g7 summit back to aimen. Right now the holding area where they have been there earlier this afternoon authorities troo ying to removee face mask and protesters dont want to do that because they dont want to be identifying marks. There is a confrontation going on behind us this area here, ironic they are doing the g20 there is a large group of police and david, you may be able to turn around and see these guys moving into position right around the hotel and moving down we have seen large numbers of police here throughout the city over the past 24 hours or so, michelle they have been propositioned and looks like they have the situation around here in control. They have been using Water Cannons on protesters already. It is not dark here in hamburg, germany yet, we are seeing nighttime rise activities. Things over the years like these tend to heat up at night very detectible in the air here during the course of the protests i think as the night goes on, this will definitely heat up around here. Tell us about the area where you are. I am reading that there were criticisms of holding g20 in this densely populated part of the inner city of the long running history. And police were concerned of this particular location reporter yeah, like i said, this area just behind me along the water front is known as the traditional headquarters in hamburg, this and our hotel is right here the establishment figure of the worlds economy is right here of the establishment figure of the movement we are a couple of blocks of the district of hamburg. This maybe not necessary the right location to drop the g20 in the middle of all of that and particularly with President Trump coming here at a time when american leaders is not extraordinary popular. When globalization is not extraordinary popular here in germany as well. All of that leading to this sort of moment where you do see a lot of people on the streets right here, it is relatively calm we heard a few splash bangs down the road here a minute ago we got a friend here trying to get himself on television. Otherwise, pretty calm here. I think the observation today that these are organized annicus. Markets seem to be sharpening off. I have been told that marijuana can often make you like dazed and prone to chill out a little bit marijuana and smoke we went to the protest it was common and mellow here yesterday. Today, you can feel the tension wrapping up here theyre calling it welcome to hell thank you very much stay safe, well see you the rest of the day. Thank you. Lets change gears now oils losing steam lets head to jackie. You can see crude went from session highs to all the way down to session lows we were trading over 46 a barrel and well over trading at 45 and 49. Regaining a little bit what i am being told a little bit this is one of the situations, department of energy reported this morning. Traders are digesting and conflicting data you had a big draw down, inside the lashaun stewa the report, you saw production number goi numbers are going down people are seeing these numbers are not conclusive in terms of traveling as well. Jackie deangelo thank you very much the dow is down 17 points and the nasdaq is down ge is down more than 4 and as for the biggest sector, telecom and as well as s p energy. The rise is breaking out of the gsummit in hamburg. Well be back in 2 im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. Thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. That report there by the wall street journal says the deal can be announced as soon as today. Regulators rejected the deal saying it was not in the Public Interest and Interesting Development here with regards to whether Berkshire Hathaway gets more in the side of things thank you, don. Amazons plans to acquire whole foods could change the landscape for Retail Real Estate diana olick is joining us. The value of the strip mall centers of the whole foods shot up and competitors are facing a big challenge. Centers of whole foods will see more foot traffic especiall especially now they have a reason to go prices are lower and they picked up some bedding along amazon while that will hit the grosser chain and connected stores, it will hit the real estate underneath harder. The best retailers are likely to design being in the whole foods center lets talk about the reads that could take a big hit. Regency, roic and wine garden. The most expose todd the whole foods competition. On the flip side, regency as a feud and american asset. They dont compete with whole foods and theyre still doing very well. A lot more of the online check out cnbc. Com can i ask you a basic question, do we know for sure that amazon plans to use whole foods as distribution. I guess it is logical but i am not convinced at this point. There could be a drive through window at the whole foods where i can pick up my alson goods tha amazon foods that i ordered online thats where you see the changes and what the evaluations is on the land below not only for convenience but in terms of brands whole foods for something, namely, healthy, organic products and if you had the whole things are available for amazon, you cannot say all of them or most of them fit in the brand definition that whole foods have thats more of a retail question, of course. What it will do is drive more foot traffic to the center and the more foot traffic you have not just to whole foods but the surrounding stores thats where you see occupancies so up and more traffic going up. Theyre benefiting now because amazon is going to be apart of it. They were suffering because Amazon Amazon them out of business absolutely. I asked the question, well, would the warehouses suffer because of this because we have seen such a growth in the a warehouse sector this could become one of those distribution center. Thank you diana last year robert frank took me on a blast. Today on a faster car. Thank you, i am not riding on a shotgun this time. Many lamborghini todays roberts trip in the worlds fastest road car is ngp on power lunch. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. We saw anarchists protesting in hamburg, germany. We saw riot police and water guns and etcetera, right now things appeared to be under control. Well keep you up to date with this coverage sue got other headlines is this thank you, michelle, here is whats happening at this hour House Speaker paul ryan took a moment to address voter concerns of north koreas long range Missile Launch and the turn up pressure on china. North korea is racing to have a Nuclear Weapon to deliver on a long range missiles. It is the worlds problem if north koreas gets delivaberable Nuclear Weapons. Eastbound lanes of the major m 6 will be shut down allowing for a 9. 5 Million Construction project. The french countryside where spectators are lining the road to watch the tour of de france, one person had an interesting view riding his own bike on a high wire no less. You are up to date, thats the news update at this hour brian, back to you it is a great shot, iegright . It is so french and imean that with love the Yellow Jersey yeah. Qui at some point he takes his hands off and waved to the crowd. There you go. Thank you thank you. Many are finding any workers. That includes the great state of wisconsin. Unemployment is 3. 2 , labor force rates are up and lets take a deep dive in the real economy of david martin, contractor based out of green bay how they are doing from what i am understanding and the signs i saw when i was there last week, things are pretty good right now, how do you see the economy . Our backlog is at the highest levels have been in years. We have seen the same thing you saw when you were here in green bay. The title district is experiencing a lot of Growth University work on north star schools and retail clients specifically grocery and improvement, we are seeing a lot of growth there. Thats sbrainteresting david talked so much on cnbc on the struggles. So are you telling us yourread on retailing and commercial are better than some of the numbers suggested . We are not a ground up general contractor so a lot of retailers are testing different products and they renovate in a test market and rolling out across portfolios we are doing a lot of sessions right now. There is not a lot of new retailers expansion. A lot of the projects finance, are you seeing a lot of impact or the fears of rising Interest Rates we have not seen that at all currently. Okay. Why is it so hard to get people right now, do you think well, i think a lot of people left the work force back in 2010 and 2011 and not a lot of people went into it you see a lot of programs that takes four years to develop and a lot of people are retiring in the same year as right now what we are doing is focusing on the youth of punisher programs and the Technical Schools where we are going out to the high schools as well as donating materials and our time to incentivize the younger yen realizations to join the trade maybe green bay or wisconsin having the lowest rate in our country, soon. Are you having a hard time where you have to pay more it is a challenge i am involved in a lot of our Senior Management is involved. I think i hear a lot of people say it is a big challenge but at the same time with these executives, they spend a portion of their days and week going to suc career fairs and teachers and if they see a candidate, they can refer them is it hard to convince to go in the trades, there is all this focus of go to go to college, got to go to college yes and they dont have a debt as a four Year University and they can earn quite a bit of money as well as going through the program. A lot of in venn tifcentivese david martin. Thank you for coming to our program. I literally found him he found you. Worked out. Nasdaq is at 100 ats a well tackle tech, next. If you could book a flight, then add a hotel, or car, or activity in one place and save, where would you go . Expedia. It is been a tough run for me it is now down 4 of 30 days and 100 stocks are down 10 during that time. Is this the start of something more serious or just a slight swoon . Is this something to worry about or an unhealthy pull back, boris . Tech is under assault from many angles and apple needs a huge hit of iphone 8 and a thousand a pop, i dont know if they are able to get that. There seems to be problems all over the place now momentum has shifted longterm though, tech is a solid place, for now, i think there is more to be done ari, in tech. Sentiment has shifted, has it shifted temporarily or permanently . Temporarily how we see it this is run of the bill and healthy and pull back following a terrific run for this group. Potentially depends on time on a certain degree near term, i think we could get additional cons consolidati consolidation. It is going to be more sideways in nature. The key level we are watching in terms of the cues and nasdaq in particular is 133. Thats with lineup with the break away gap from april. This will be a minor retracement of what was a terrific rally into its most recent highs ultimately, we think the longterm trend does we assume higher when that is the case, pull backs should be bought whefor buyers loud and clear. Thank you boris. More more on trading nation, go to tradingnation cnbc. Com joining us on the news line is fred kemp hes in poland where President Trump is speaking earlier today. Our totality is we have been watching these protests unveil, is that whether it is globalization from the wto meetings from 10 or 15 years ago or anticapitalist protests we are seeing this happens at all of these meetings can you add anything to this discussion as we watch the Police Water Cannon and a lot of black clouds and protesters with masks on their face. The police asked the protesters to remove their masks because of anarchists are not supposed to do that. I think there is a law against it they attacked Police Vehicles with bottles and bricks. This was all predictable you have to start asking why they even have these meetings in the city like hamburg, it is a heart of the capitol of the left the district which they have the district of the meeting is the heart of these protesters. So it is it is provocatiprovocas they title their protest g20, welcome to hell. There are 20,000 police in the city from all over and not just from hamburg this was all predictable the question is, is it worst than they expected or not as bad as they expected i dont know. It looks pretty bad. I am not sure given all the run up to it that anybody would be surprising it is not really about donald trump, it is really the same group, maybe he fired them up a little bit more but hes a little of globalization himself. Fred, why do you think they do this . Holding this meeting in a town like hamburg there is plenty of places in the world, g20 countries are hard for a lot of people to get to by men and women who are flying in private jets with military in helicopters. Why dont they go some where that other people dont want to go and do what they need to do and get the heck out of there and get something done i am sure there is some Internet Political reasons for this probably to do with elections in the fall i dont know it but i am going to check into it and figure it out. The thing is, there is been a lot of places in germany, there is there are a lot of places in terms of the area, there is just a lot of places in germany where this would not happen and this was almost, you know, there is no way to avoid this. The only question is how bad it is going to be you mentioned theyre not protesting donald trump. How do you think the president is doing so far on this trip the trip to poland, this is wanted to come the trip to germany, it is a summit necessity, he cannot refused to come. Rudy jullianni he says he does not give ada da. Hes continue to be tough on trade deficits interesting thing, right after the eu and the japanese have announced the new trade deal the japanese have been very clear theyre really unhappy and theyre hoping this may bring the americans back to the table in some form, theyre actually starting to lose out in asia there are interesting back stories of the g20. Japan today signed an accord with the european nations to do free trade i heard some japanese comments on that they were able to do a great deal with japan and so lets see if this changes the Trump Administration at all. Thank you to calling in as we watch these protests unfolded in hamburg, germany a market check here. The big drag on the dow down of nearly 4 and jp morgan. We are catchiwatching shares ofa now and it is down by 5. 8 now telecom is down nearly 2 . We have more of power lunch straight ahead now the latest from trading nation the words from our sponsors. The number of shares sold is called Short Interest. Short interest is often used to gauge Market Sentiment a rising Short Interest can mean investors are becoming more barr issue in a Company Traders are often forced to buy back tirhe short stock and that could drive the stock much that could drive the stock much higher. Hey, ive got the trend analysis. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Blue apron covered in red sauce right now, down about 10 there, 9. 73 at 7. 98 its hovering near the 8 mark after going public at a lower open last week or so, about ten days ago at 10 a share. Blue apron smudged. Check, please is next dont move [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. And im an arborist with ipg e in the sierras. The drought in california has killed trees on a massive scale. Any of those trees that fail into power lines could cause a wildfire or a power outage. Public safety is the main goal of our program. Thats why were out removing these hundreds of thousands of hazard trees. Having tools and Technology Gives us a huge edge to identify hazard trees. My hope is that the work were performing allows that these forests can be sustained and enjoyed by the community in the future. Together, were building a better california. Robert frank, one of the first people in the world to drive a new bugatti that can go that can go more than 250 miles an hour, but this may be his only chance as it costs 2. 6 million. Hes test driving it in greenwich, connecticut hey, how does it feel . It feels great, michelle. 3 million great this is the fastest production car on the planet, and most expensive at 3 million once you add all the options. Its more like 3. 5 million. Now, they dont publish the top speed of this car. Its limited right now to only 261 miles an hour. Lets me give you a flavor of what this car can do are you guys ready is that are you on the merrick parkway . Reporter thats just a little taste, about a third of the way down the accelerator on that. And how fast were you going reporter only making 500 of these cars it says 45 Miles Per Hour, so i was going 45 Miles Per Hour. Now they are only making 500 of these cars half of them are already sold, and just you hagot a taste of that engine, 1,500 horsepower. The last bay run, bugattis previous car had only 1,200 this car is expected to go somewhere north of 240 Miles Per Hour once they do the final speed car and the average bugatti owner owns 42 cars, five homes and three jets, so this is the richest car buyer on the planet that are buying these cars, and there havent been any delivered to the u. S. Yet probably in the next few months there will be one or two, so this is one of the first cars to come to the u. S. Im one of the first people to drive it it, and i have to say if i had 3 million, this car, when youre driving it just sort of smooth, normally, its a very smooth comfortable car, not rigid or bumpy like a ferrari or lambo and you put the petal down and heart turbo kick in, and its very, very, very smooth. Where are you on the merritt parkway, robert. Reporter i cant really tell you where i am, brian, but im somewhere doing 45 miles an hour. I was just going to let that let the Connecticut State Police know where they could find you. That was tyler, are by the way, not me. Im just annoyed that im not also driving that car, robert. I hate you, you know that. Reporter i wish you were here well have to get one back for you, brian it is unlike any other car ive ever driven. Its addictive i wish i didnt have to leave this car today some day i might be able to buy one, but 3 million, half of them are already sole. They are only going to make 70 a year, and and, you know, its going to be about an eightyear process to unload these cars, but really unlike any other car. Great stuff. Reporter 1,500 horsepower. Thats amazing. Reporter like having a leather seat with a jet engine strapped to your back. Behind a Honda Odyssey going 30 in traffic. Cant do anything about the traffic. Reporter thank you, guys. Check, please. You thought that was check, please my check, please, is rising are rates, momentum stocks, they sell off when Interest Rates rise its just like physics almost, so im not surprised to see things like tesla selling off. And as fortes larks weve got gene munster, a really interesting note saying the release of the model three is like apples iphone moment. Starbucks quietly down 10 in the last 30 days what happened . Rising rates, flattening yield curve or rising rates, but theres still a flat yield curve. Usually signals recession but nobody is talking about that. Thanks for watching power lunch. Closing bell starts now. Hi, everybody. Welcome to the closing bell today. Im kelly evans at the new york stock exchange. Im Bill Griffeth a lot of red across the board and nasdaq is giving back yesterdays gains, and tesla now has seen a 20 pullback from its most recent highs. Talk about whats behind that decline specifically, among other things coming up here in just a few minutes. Tesla down another 6 today big moves. Yeah. Meantime, protesters clashing with police in germany outside the g20 sum